Salmar Asa Unsp/Adr

Yes, good morning everyone, and welcome to the presentation of Salmar's results for the third quarter of 2026. My name is Frode Arntsen, I am the head of the company in Salmar, and together with me today we have as usual CFO Ulrik Steinvik, Strategy Director Runar Sivertsen, and IR-responsible Hakon Husby. And this time we are trying to get Salmar's quarterly presentation to be both for the analysts, investors, Salmar employees and many others interested. We are always a bit nervous, as we usually are, because it is a kind of Tentamen, eller til og med kanskje en examen både for selskapet og litt også for oss som skal representere selskapet på en sånn dag. Og da ønsker jeg å takke alle sammen som møter opp fysisk i salen. It's not all of us who have physical quarterly presentations anymore, but we hope we'll have them for at least a while. And we'll put a big price on the meeting today as usual. It's always fun to do it with someone in the hall. Also for you who follow us via webcast, a real good morning to everyone. And it's only been ten weeks since we last presented the numbers at the end of August. Time goes by very quickly, and a lot has happened in the meantime. And large volumes have been produced in Salmar, handled in Salmar, slaughtered in Salmar, and transported out and sold to customers in Salmar all over the world. Because we have been through a period with large and record volumes now in Q3. I would like to extend a big thank you to all of our employees who have worked really well during this period. I know that many of you have been up late and early, and even though we have had our challenges during the period with changes in the battle plans and different events that have to be solved day and night, on weekends and whatever, I am simply proud of the work you are doing, and I am proud to be allowed to be the leader of the fantastic Salmatåget, which is moving forward in good speed. Some of what we are going to go through today shows that much can also change in a short time when you work with biology. It has actually affected our results quite a lot in the last five weeks of the quarter. And even if cost development does not become as we wanted it to in Q3, you will see today that much has gone very well as well. And with the set-up we have in the value chain, which we have talked about the strength of earlier, we are pleased with how we have handled the circumstances at the end of the quarter, and that today we have put forward good financial figures, which is significantly better than last year, as a result of higher volumes, lower costs and better price achievement. All in all, a solid quarter for Salmar. The whole process follows a well-known agenda. You will go through the highlights and the different segments, before CFO Ulrik will go through the financial update. Finally, we will talk about upgrading and plans for InnovaMar next year, and volume guiding for 2027. At the end of the presentation, there will be questions from the audience, and for those of you who follow us via webcast, you can send in questions on the web. Let's take a look at the highlights first. In total for Norway, we slaughtered 99,900 tons to a margin of 1620 per kilo. Collected for the Norwegian business, we delivered an operational revenue of 1,620 million. We include Icelandic salmon and salmon ocean. We slaughtered 105,100 tons, with a result of 1,609 million, or 1,530 per kilo. The volume of slaughter in the quarter was record high, driven by good biology that we have experienced throughout 2026. The sales industry delivers a very strong result, where both higher volumes on our facilities, better operations and better sales performance are involved in explaining this, and undermining the strength in this segment. Iceland is back with positive numbers again, where reduced costs explain improvements. A significant increase in volume also from Scottish Sea Farms, but the results are still low. At the same time, we expect a somewhat lower cost level now in the fourth quarter. The volume guidance for Norway for 2026 is unchanged, but Iceland and Scotland are reduced by a total of 3,000 tons, so the total for Salmar will be 347,000 tons. In 2027 we expect a corresponding volume. This will come back towards the end of the day. As you have seen, we announced in July that we have agreed with Heimstø, where we will buy the 70% share in Måsevald. The process of getting the competition approval for the Måsevald transaction in place is in line with the plan, and we think we have to wait until the new year for this to happen. Let's take a look at the details in the segments. Let's start with mid-Norway, where we slacked off 51,400 tons in the quarter, with an operational EBIT of 342 million, or 660 per kilo. In comparison with last year, a solid increase in the result drove both increased volume, lower cost and better price achievement. But we had expected that the cost level would be even lower in Q3 than it actually was. And then we are back to the five weeks that I mentioned in September, where there were a number of hindrances related to, among other things, ILA and health challenges that made us have to re-prioritize which locations we were fighting from, and that the localities did not get the cost development they should have had towards the end of the cycle. This affects the costs with around 2 kroner per kilo for the entire Q3. And together with the fact that we have resulted in a loss of 50 euros per kilo in the period, there was no cost reduction like we wanted, like we had guidelines for. But all in all, we always have to do what is required in Salmar, and that must be according to the salmon's conditions. In the period, we slaughtered from both our 25th generation, which was terminated, and we continued with the autumn 25th generation. The biological status we have in mid-Norway P&T is surprisingly good. The loss rate is, among other things, significantly lower this year than what we experienced at the same time last year. But some of the challenges we had in September will remain in Q4, where we will continue slagting in the fall of 2025 and start up the spring of 2026. This affects the cost development a little, which means that we expect a somewhat lower cost level in Q4 compared to Q3. We prepared oil guiding for 2026 at 167,000 tons, so we expected a slightly lower slaughter volume in Q4 compared to what we had last year. In Northern Norway we slaughtered 48,500 tons per quarter, with an operational revenue of 790 million, or 1,630 per kilo. Northern Norway has been very good for a long time, and the good biological performance continues to be very good. In Q3, we mainly slaughtered from our 25th generation. The cost was on the same low level as in Q2, and something down from last year. If we look ahead, biology has a good status, and we will continue to slaughter from our 25th generation, and start up and slaughter from the autumn 25th generation in Q4. We expect a somewhat lower cost level in Q4, similar to what we had in Q3. Also for Nord-Norway, we have upgraded the oil for a total of 26 tons, at 135,000 tons, which means that we expect a lower volume in Q4 than we had last year. Salmar Årsen, an Operasjonell EBITDA på minus 2 millioner. Som kjent så var vi ferdig utslakta her i mai, så det har ikke vært volym fra segmentet i Q3. I september så starta den neste produksjonssyklusen på enheten. Det blir då en sjette generasjon vi har satt ut på OFN. Og selv om det kort i sida fisken blei satt ut, så ser vi at produksjon så langt har vært veldig god, og vi gleder oss til den kjemte slakt mot sommeren neste år. Salgindustri leverer en operationell ebit på 526 millioner, en rekke faktorer med på å forklare det gode resultatet i segmentet. We have had a record high volume through our factories, and together with better performance on a number of different KPIs, without a drift, this contributes very positively. Sales performance in the period is also very solid. We had 29% contract share in the period, and we expected to have increased positive contributions from fixed price contracts as a result of lower market prices in Q3. Spotsalg har også bidratt mer positivt i perioden. Her har det gjort gode disponering av salg gjennom hele kvartalet. Og som nevnt, av flere av dere analytikere, etterspørselen etter laks fortsetter å være veldig sterk. Uke for uke har rekordvolum blitt solgt ut fra Norge, og vi opplever den samme interessen også fra våre kunder selvsagt, over hele verden. For laks er, og laks blir, A strategically important product that our customers need. Healthy, nutritious, nutritious food will not go without it, and people want more of the various salmon products we can offer. We therefore have a positive view of the market, both when it comes to demand and when the volume growth takes off in 2027, it is also positive for the dynamics in the market and a possible price increase. I fjerde kvartal er kontraktsandelen rundt 38%. Som vanlig går vi ikke kontraktsandelen for 20-27, siden Q4-perioden vi inngår en god del kontrakter for neste år, og vi opplever god etterspørsel etter kontrakta, og flere av dem ligger på bordet til behandling i disse dager. In Iceland and the Western Fjords, there were 5,200 tons slaughtered, an operational EBIT of 15 million, and 2.90 per kilo. It is good to see that there are positive numbers in Iceland again. And it is good to see that the driver behind the improvements is a lower cost of fishing in the slaughter now. The price achievement is also good, and since Iceland has lowered the toll to the USA, they have also been able to use more volume during the period, sold to the American market. The biological status of the fish we plan to slaughter in Q4 is also good, and we expect a lower cost level in Q4 than we experienced in Q3, as a result of having more volume in the locality that had the lowest cost. The volume for Q26 must be reduced from 1,000 tons to 20,000 tons. Our associated company in Scotland, Scottish Seafarms, There were 13,000 tons of slaughter in the quarter, with an operating EBIT of 13 million, or 1 kroner per kilo. The volume of slaughter increased significantly in the quarter, when most of the volume was slaughtered for 2026 in the second half of the year. Unfortunately, the results were poor, due to biological challenges in the sea. This has affected the cost level in the period, and will also affect us in Q4, when the locations will be slaughtered in October. This also means that we have to reduce the volume guidance for Q6, from 3,000 tons to 40,000 tons. But this has come to an end of the operational process, and I give the floor to Ulrik, who will take us through the financial update.

Thank you very much, Frode. Good morning, everyone. In today's financial review, I would like to draw up three conditions. First, a higher volume, lower costs and a good price opening give a clear result preparation for this year. Secondly, we see a continued improvement in resource utilization. And thirdly, a good flow of funds contributes to reducing electricity costs. All in all, it gives us a good financial starting point for further development of the company. Let us start with the rest of the project, first in comparison with Q2 2026. Operational work in Q3 was 1,609 million, an increase of 372 million compared to Q2. As you can see in the picture above, the highest factor volume is the most important explanation for the improvement of the results, with a positive contribution of 670 million. The price achievement draws down the result with 331 million, as the season-wise low prices. At the same time, we had a good price achievement relative to market growth. Our achievement price fell by about 3 kroner per kilo, compared to SIS Salmon, which fell by about 5 kroner per kilo. This reflects both the amount of contracts and the execution of the spot sale in the quarter. In total, Salmon was a price achievement that exceeded SIS Salmon in the period. On the cost side, the development is weaker than we expected when we presented the second quarter. This applies to mid-Norway, where more biological conditions have affected the cost level in the quarter. We had hanging stress-based mortality in two localities, with ILA in one of the localities, and some other fishing health challenges that were carried out earlier than planned, due to the availability of good fishing welfare. All in all, both the higher costs for the fish that were slaughtered and that we did not get the cost reduction in the scope that we had previously expected. In total, we see that the costs are somewhat lower, i.e. 53 million lower, in spite of the challenges in Midt-Norge. Some of these effects will also follow us into the fourth quarter. We will still find lower costs in the fourth quarter than in the third quarter. But the reduction will be less than we saw in the presentation of the second quarter. And the underlying costs are still down. For Iceland and Aarhus, the net result effect was negative with 21 million compared to the second quarter. This is mainly due to the fact that Aarhus did not have slaughter volume in the third quarter. And in Iceland, we see the same low costs for the localities we now slaughter from. We move on to the results. Looking at the first nine months of the year, the results are clear. Operasjonell ebitda var 5.972 millioner, og operasjonell ebit var 4.358 millioner. Operasjonell ebit er dermed mer en dobbla sammenlignet med samme periode i fjor. Om målt per kilo er resultatforberedninga 7,5 kroner sammenlignet med samme periode i fjor. Hoveddelen av forberedninga kommer fra lave kostnader, med tillegg er det noe bedre prisoppnåelse. This illustrates the effect of higher volumes, lower costs, better quality of fish and good price achievement. Looking further down the revenue chain, production expenses in Norway and resource tax in Iceland have collected 277 million kroner this year. The real value adjustment is positive in the quarter, among other things due to higher preparation prices and lower expected costs per share. So far this year, the real value adjustment is stable. The result ratio for the previous sales was positive in the quarter, mainly affected by the real value adjustment in Scottish Seafarms. So far this year, the result ratio is negative with 25 million. Nettofinansposter is out of minus 960 million this year. The interest rates have been reduced by 41 million compared to the same period last year, mainly due to a lower yield. The result after the tax was 2321 million this year, and the adjusted result for the share was 16.2 million, almost a threefold from last year. Over to the balances. The total capital has increased from 898 million for the second quarter to 57.9 billion. The increase is, among other things, affected by the regulation of new drilling contracts after IFRS 16. In addition, the real value of biomass is increasing. We also had more biomass in the sea at the start of the third quarter than at the start of the second quarter and at the same time last year. It is worth noting that this is after the higher volume in the quarter. The cost per kilo per stone in the biomass was stable compared to the previous quarter, and lower than at the same time last year. As a result of the positive results in the period, the share price increased by 36% at the beginning of the quarter. Netto rentebenn i gjeld, 17,9 milliarder kroner ved utvang av kvartalet. En reduksjon på om lag 1.228 millioner kroner gjennom kvartalet. Skjer det opp mot årets forventa slagtegården på 347.000 ton, er t-svaret ca. 52 kroner per kilo. Nib av EBITDA er 2,1, og gjeldskralen er dermed innenfor det nivået vi over tid har kommunisert at vi skal ligge på. It has been noted that the interest rate has been reduced, while in July we spent about 1.4 billion kroner in the expansion of the shareholders. With the start of the quarter, we had 15.9 billion kroner in available liquidity. All in all, this gives us a good financial starting point for a planned implementation of the Måsevald-transaction, provided that the necessary municipal interest rates come into play. I also used some time on the graph at the bottom of the slide. It shows the slaughter volume per ton of MTB in Norway. For us, it is an important goal, as it is an important driver for value creation over time. Salmar has over time had a high output of MTB, in combination with other major actors. After the purchase of NTS and NRS in 2022, the yield fell naturally. Through the purchase, the MTB increased immediately, but it takes longer time to develop the production and extract the full potential from the increased MTB. But we are now back at the level we were at before the purchase. This illustrates an important point in my opinion. Det tar tid å utvikle produksjonen etter større oppkjøp. Hele verdikjeden må utvikles i takt. Genetikk, settefisk, sjøproduksjon, brønnbåter, slattekapasitet og salg. Over tid er målet å få mest mulig bærekraftig og lønnsom produksjon ut av MTB-en og de øvrige ressursene vi har tilgjengelig. Selv om utdøtelsen er betydelig forbedret, mener jeg fortsatt at vi har ytterligere potensial. This also brings me to a more overwhelming point about capital issuance. Capital issuance has always been an important goal for Samar, while issuances are valued over an appropriately long period. In a capital-intensive industry like ours, we must balance good running issuances against investments that can lay the foundations for profitable growth and increased value creation. For us, long-term value creation is a combination of operational efficiency, wage growth and financial capacity. This is also how we mean that we create a high total discount for shareholders over time. We have to stop the financial transition, but get closer to the developments in the net income through the quarter. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. We started the quarter with a net income of 19,092 million. It was partly in opposition to the sale of smaller shares and in opposition to the expansion to share in the company. In addition, we paid out about 1.4 billion kroner in expansion in the quarter. The payment of the rent and other payments amounted to 18,143 million kroner in inclusive leasing to financial institutions at the end of the third quarter of 2016. A decline of 1,250 million kroner. All in all, the spending through the quarter has shown a continuous reduction in sales, while we have also paid a total of 1.4 billion kroner in spending. To sum up the financial situation once again. High volumes, low costs this year, and good price achievement have given a clear result improvement. At the same time, we continue to improve the use of MTBs and their capacity in the value chain, and good cash flow has reduced sales back within our communicated level. Thank you very much.

We will go over to talk a little bit about our industrial part in the value chain and some of the details around it. And in the picture you can see Innovamar, which is still the main office in Salmar. Although Ulrik sits in Trondheim, it is a district office, it is important to have with you. The main office is in Freja, and it is still the largest slaughterhouse and further business facility we have. Innova Nord on Senja is the slaughterhouse PT, with the largest capacity and best volume result per hour and per day. Together with Viken Co, a little further south, outside Molde, In mid-Norway, and in Northern Norway, we have three facilities that are always standby 24-7 to slaughter and process the fish of the year. When farming needs to slaughter the fish, these facilities are always ready, no matter the day, no matter the time of the day, and no matter what volume that comes. We have built these facilities with Overkapasitet, sånn at vi skal ha stor momentankapasitet og fleksibilitet til å håndtere fisken når det er behov og når den er klar til slakting. Det er vanskelig å kvantifisere effekten av hvor mye dette betyr for verdikjeden vår, men det er i tvil om at uten disse anleggene så kunne ikke Salmar ha prestert så godt på sjø som vi faktisk gjør. Hvis vi ser på grafen til høyre, We see that the development of a number of operational copies from slaughters in InnovaMar and InnovaNord has gone in a positive direction over the past year. The numbers show that so far we have slaughtered 7% more fish, the efficiency of fish per minute has increased by 25%, and the cost of salary per kilo has gone down by 27%. All of this is measured work, They are very happy with the improvements in Salmar. Painting, feedback, applications are central in Salmar, and it is necessary to get improvements. If we look at the green lines, we can see how a top-notch facility can perform. In Q3, they have handled a record high volume, and they have done it in a very effective and good way. I don't think people can understand that when you slaughter and pack 200 large salmon per minute, or 3 salmon per second, or 1.1 million salmon per week, that's a lot of fish, and how fast it goes. So to all of you at Innova Nord, clap your hands on your shoulders, and thank you for a very impressive performance in Q3. These are industry-leading numbers. On the blue lines, we can see that Innovamar, which has been a little behind in recent years, after the upgrades this year, has also had a good increase in efficiency in Q3. It is already 16 years since the opening of the fantastic Innovamar facility. These 16 years are actually 32 years, and maybe more, because the facility has almost gone down in those 16 years. And therefore we need to do both something bigger at the same time and capacity increasing upgrades on the facility, and we started something in 2026. And we have decided that the first half of next year we will make a longer stop at 5-6-7 weeks, so that the facility can be completed with the upgrades to the slaughterhouse part. Thank you for watching! It will increase capacity, it will increase efficiency, and maybe in a year's time the blue lines will be taken over by the green ones, we will see. A little internal and good competition, I think, as I said, is just healthy. It will be exciting to continue to fill in the KPIs for both facilities. Volume for 2027. 2026 has been a very good year for us biologically, where several biological KPIs Good on growth and survival compared to previous years. As we have mentioned before, this is not just the good sea temperatures that explain this. We see that the underlying performance of the fish is better, as a result of the correct genetics, correct smelting and right smelting at the right time, vaccines and production strategies we have in Sannar, including lice handling. That is why we have taken this experience with us in our new prognosis models, by adding to the basis a underlying stronger growth and higher survival. Together with how the output profile has been, and the mix of fish in the sea is per day, we expect to have slaughtered 307,000 tons in Norway in 2027. That is the same level as in 2026. In Iceland we expect 18,000 tons, a decline of 2,000 tons compared to this year. In Scotland we expect 45,000 tons, an increase of 5,000 tons. We expect a volume for 2027 at the same level as 2026, with our relative share from Scotland, and a total of 348,000 tons. Note that the Måse-evaluation is not included in these figures yet, so we must wait for the competition approval before we can include the figures. Looking at the graph to the right, we have taken out a lot of the organic volume potential this year, and that went very well before we also took the last one. If we take with Måsevall's own extracted potential, we are at 412,000 tons, an increase of 64,000 tons, or 18% from the level of 26-27. So we have room for further growth in the years to come, which we have also set aside for when we put new fish out in 2027 and prepare for volume in 2028. Now we come to the end, and the biology is, as mentioned, good, where we expect some lower costs in the fourth quarter. I have gone through the guidance for different segments, summarized in the board, We expect a low volume growth globally in 2027, and the demand for salmon and our products is strong, and the process to get competition approval with Mossavall is in line with the plan. So summarized for today's presentation, Salmar has a positive view of what is ahead of us. And with this we have come to the end, and we will gladly answer any questions at the top.