Mowi ASA (MOWI) Earnings Call Transcript & Summary

Good morning, everyone, both in the room and online. My name is Ivan Vindheim. I'm the CEO of Mowi for those who do not know me. It's my pleasure to wish you all welcome today to Mowi's Capital Markets Day of 2024. After what I think is fair to say, it was a rather busy yesterday, where we visited our 400,000 tonne feed factory in Bjugn, our 6,200 tonnes smolt and post-smolt facility at Nordheim, which is the world's largest according to my numbers, not to mention our brand-new state-of-the-art 100,000 tonnes primary processing plant at Josnoya, a feeding station in Central Norway, a site visit, just to mention a few. And after seeing, it's believing, so what could be more appropriate than to spend a few hours together this morning, that we present our strategic and operational plans for the coming years. And with me to do so, I have our entire group management team present here today, a very complementary team, if I may say so, composed of highly skilled and very experienced executives. And if you take the introduction in the chronological order, Kristian Ellingsen, our CFO; Oyvind Oaland, COO Farming Norway and Chairman of our Icelandic Operations; Ben Hadfield, COO Farming Scotland, Ireland, the Faroes and Canada East; Fernando Villarroel, COO Farming, Chile and Canada West; Ola Brattvoll, COO, Sales and Marketing; Atle Kvist, COO Feed; Catarina Martins, CTO and CSO; and Kjersti Eikeseth, our CHRO. Cat is out of the bag from the very beginning. We have another busy day ahead of us with a rich agenda. The first session is mine and runs from 8:00 to 8:25, where I will give you our business and strategy update. Then Kristian will cover the financial section before Ola takes over the baton and walks us through the downstream business. Then we'll have our 15 minutes break at 9:05 before Oyvind, Ben and Fernando will take us through our 7 farming countries and 11 farming regions and Atle our Feed operation. Then we'll have another 15-minute break at 10:20 for Catarina will walk us through R&D and sustainability, including fish welfare, and I will conclude with some closing remarks before our IRO, Kim Dosvig, will host our Q&A session at 10:55. Those who are following the presentation online, can submit your questions or comments in advance or as we go along by e-mail. Please refer to website at mowi.com for necessary details. Disclaimer. I think we leave for a self-study. So with pleasantries, practicalities and the disclaimer out of the way, I think we are ready for the business and strategy update. In all humility, we'd like to say that Mowi is one of the world's absolute leading seafood companies, if not the leading. And I think we can say the numbers lend us support to say that, as we are #1, measured by both market capitalization and sustainability in addition to being the world's largest producer of Atlantic salmon, by far, with our 500,000 tonnes this year, which are equivalent to as many as 2.9 billion meals per year, or 8 million meals per day of delicious, healthy and nutritious salmon, which means that 1 out of 3 people on Earth, it's Mowi's salmon during the year, if you use salmon meal per person. So there is some scale to this. Furthermore, we have a fully integrated value chain. We'll get back to you shortly. We are listed on the Oslo Stock Exchange, which I guess most of you already knew. And we are headquartered in Bergen in Norway, the city we'd like to regard as the capital of the salmon agriculture industry. No offense to the other trusters. And finally, last year, we recorded EUR 5.5 billion in operating revenues, which translated into an operational profit north of EUR 1 billion. As this slide reads Mowi's vision is to Lead the Blue Revolution, but all that entails. And I guess, you can say that follows naturally from our size as these chart shows, we have a clear #1 position in Atlantic salmon. Approximately 1 in every 5 kilos Atlantic salmon consumed in the world comes namely from Mowi. And not to anticipate [ events ], which is our position intend to further strengthen in the years to come. As already touched upon, Mowi is fully integrated from feeds to plate. We produce our own environmentally certified feed, especially designed for the Mowi strain because contrary to our peers, 100% of the Mowi salmon comes from own breed with opportunities that brings. A breed of strain cultivated since the '60s when we stripped the first broodstock in [indiscernible] outside Bergen. The broodstock originated from [indiscernible] famous for the large-sized salmon with late maturity. The seawater phase takes place at approximately 250 seawater farms in 7 farming countries, with smolt from 30 odd freshwater facilities. And we harvest and fill with the fish at 12 primary processing plants and produce [indiscernible] products at additional 20 value-added factories. And further to that, we have an extensive sales network physically present in as many as 26 countries, selling our products all across the world. The value chain, we have organized into 3 divisions, which are Feed, Farming and Sales and Marketing. And as I already said, we're #1 in farming in volume terms. We're also #1 in Sales and Marketing, which is our downstream instrument, and we're #4 in Feed. Speaking of which, our 2 feed mills in Bjugn, Norway and Kyleakin, Scotland make us self-sufficient for feed in Europe with our 2023 production of 528,000 tonnes. Capacity is 640,000 tonnes. So we have also satisfactory room for accommodating further growth in Europe. And with a small investment, we can increase it even further. Atle will talk more about this later this morning. Whilst in Americas, we have chosen so far to buy our feed externally due to lack of scale. Mowi is the only truly global salmon farmer in the salmon universe, with our 500,000 tonnes this year produced in 7 farming countries, which are Norway, Scotland, Ireland, the Faroes, Iceland, Chile and Canada, of which Norway is by far our largest farming region with 305,000 tonnes, accounting for approximately 60% of our total farming volumes. Europe combined accounts for approximately 80% or 400,000 tonnes, whilst the Americas accounts for approximately 20% or 100,000 tonnes. Mowi is also the only truly global player in Sales and Marketing with our 20 value-added factories and 26 sales offices in 26 countries. And last year, we produced and sold 232,000 tonnes product weight in this part of the value chain or approximately 340,000 tonnes of raw material. As in Farming, our main footprint in Sales and Marketing is in Europe, which is the largest market for the salmon, with approximately 75% of our volumes. The remainder of our volumes are approximately equally distributed between Americas and Asia. Otherwise, we do not miss out on any opportunity to promote our products, and we may not this time around either. If you have heard this before, please bear with me. And if you haven't, now it's time to pick up your ears because this is the success formula behind salmon adventure. This is what carries it all, namely the salmon itself. Because since the old days, the Atlantic salmon has been known as the king of fish, and the world's insatiable love for this species has made it the world's most popular fish. And also naturally, I would say, Atlantic salmon is a fantastic product with great product features. It's scientifically proven natural super food and great for ones health as it's rich in Omega-3 fatty acids, high-quality proteins, vitamins, potassium and antioxidants. It has also top appetizing taste, look, texture and color, which is, of course, of paramount importance in this. We're after all talking about food and good experience. And it's versatile for both traditional and evolving food occasions, whether raw, grilled, cooked or smoked, and it's appealing to people of all ages. Last but not least, farm Atlantic salmon is the most sustainably produced animal protein. And to top it all, the Atlantic salmon is also the fortunate beneficiary of strong mega trends, such as population growth, a growing middle class with increased purchase power, a rising health consciousness among consumers and society at large, an aging population, exploited resources, including wild fishes at the maximum sustainable yield and not least climate change. We've found that Atlantic salmon has superior sustainability credentials versus other animal protein sources. So I guess one could you say that salmon ticks all the boxes and with these powerful drivers, we believe in continued strong development in the long-term demand for the salmon. We have the blue line here on the chart. We also believe in limited supply growth going forward, as you have seen in recent years, and that's the red line here on the chart. Because for a number of reasons, conventional salmon farming faces growth limitations in most countries that are relevant in this context. And so far, so-called new technologies are long overdue to put it mildly. And personally, I think it will still take many years before they will come into their own and start making a meaningful difference to the global supply. In other words, we believe in a tight market balance in the coming years. And against this backdrop, which should be no surprise to anyone, that further farming volume growth is one of our 3 main strategic pillars. The two others are cost competitiveness and sustainability, including fish welfare. And they are equally important because cost competitiveness ensures profitability and shareholders' return, whilst sustainability, including fish welfare is strongly connected to our social license to operate and our ethical conscience. Everything starts with the farming volumes, which are, in the end of the day, the mainstay of our business model and the lifeblood of this industry. And as you can see from chart here, we have been through some very productive years in Mowi because as recently as in 2018, we harvested only 375,000 tonnes, whilst this year we are on course for 500,000 tonnes, which means we have grown our farming volumes by as much as 125,000 tonnes over the past 6 years or a CAGR of 4.9%, but that's surpassing the wider industry by a large margin. And this growth, in fact, has been organic growth because we have lost small capacity than what we have bought in that period. And if you can allow ourselves on a fun factor on a day like this, this growth alone would have been the world's sixth largest salmon farming company, with old Mowi from 2018 still on top of the list by a wide margin. But as we can see from the chart today, our clear ambition and goal is to continue on this growth trajectory to 540,000 tonnes in 2026 and 600,000 tonnes in 2029. That means of a CapEx of EUR 600 million. And this farming volume growth, we believe will translate into a top line growth of 7% to 8% per year when we include the rest of the value chain to EUR 8.5 billion in operating revenues in 2029. And this is not a randomly picked number because in previous 5-year period, from 2018 to 2023, we grew our top line by 7.6% per year. And then we also grew our Farming volumes by coincidently 100,000 tonnes, which is the plan for the coming 5-year period. The numbers they do add up, and they are realistic in our view. So how do we plan to deliver on this organic growth? Well, the short answer is to increase smolt stocking and post-smolt because we have still unutilized license capacity in Mowi and several other countries, where we operate and by being so post-smolt, we can increase the productivity on license already in operation. I would like to remind the audience that we, next year, will have a quarter of a smolt in Mowi as post-smolt and in Norway as much as half of the smolt, if you take [ Region North ] out of the equation for natural reasons. Where we plan to do what? So combine the two, we will get back to later this morning and Oyvind, Ben and Fernando take us through our 7 farming countries and 11 farming regions. In terms of CapEx and projects, we have already invested or have projects ongoing to take us to 540,000 tonnes in 2026. From 540,000 tonnes in 2026 to 600,000 tonnes in 2029, we need additional CapEx and projects in the order of EUR 600 million. And for order sake, a potential new license or environmental license scheme in Norway is a wildcard in this and so is accretive M&A. So I think it's fair to say we have come a long way in Mowi since we launched our productivity program a few years back. Because truth be told, not much happened on the volume side in Mowi for many years after a big merger in 2006 due to a confluence of factors, some within our control and some beyond, but which are now in the rearview mirror because we have gone from lagging behind our peers or the industry of farming volume growth to be ahead of the game. And this translated into the best earnings per share development amongst peers in previous 5-year period, from 2018 to 2023. And our clear ambition is to continue or replicate this in the coming 5-year period. Not only by farming volume growth, but also through cost competitiveness, which is our second strategic pillar. And I think we can say we have taken some important steps in this field as well in recent years, which have given us our #1 or #2 position on cost in the regions, where we operate. But we can always do better, always, which is the enemy of great they say, and that's not only cliche, there's a lot of wisdom embedded in it. So our clear goal is to further strengthen our cost position in the years to come through a set of new initiatives, both biologically and by more cost generic in nature. Kristian will get back to further details in just a few minutes and put a number on this. Our third strategic pillar is sustainability, including fish welfare and as we have said numerous of times, sustainability is deeply ingrained in the Mowi culture and at the heart of everything we do because Mowi is a company that lives and operates in close cooperation with nature, and our success depends on having a salmon that thrives and a production that is sustainable and environmentally responsible. So we care for salmon, and we care about nature. But we're not flawless, and sometimes nature turns against us. That's the name of the game in our biological production. Biology is the law, and everything else is just a recommendation. But I can assure you that we work hard every day to develop and do what we do in an even more sustainable way. And I think this slide shows to the full that our work in this field has borne fruit as we have received recognition and awards from near and far. And maybe most notably, we have been ranked by the prestigious Coller FAIRR Initiative at the world's most sustainable animal producer in fierce competition with all the largest animal producer in the world. And just recently, TIME Magazine ranked Mowi as one of the world's 500 most sustainable companies and this time around across all industries. It doesn't stop there. We can and we will do more because that's our social responsibility, but first and foremost, because we care and personally, I have to say, I have particularly high expectations for our post-smolt venture and what we can do to our biological metrics, including survival rate because there is reason to believe that one can half mortality at site with post-smolt under the right circumstances. So this is exciting stuff, which we will hear more about later today. From one thing to another, Mowi feed. As we said earlier this morning, our 2 feed mills in Bjugn, Norway and Kyleakin, Scotland make us self-sufficient for feed in Europe, and we have also unutilized capacity to accommodate further growth and a small investment, we can increase it even further, whilst in Americas have chosen so far to buy our feed externally due to lack of scale because we are primarily a feed producer for ourselves. So we'll continue to grow our feed operation with Mowi farming with laser focus on feed performance and cost because feed is, after all, the single most important input factor in salmon farming, accounting for more than 40% of cost in box and the lion's share of the salmons environmental footprint. Life is normally forgiving, but here, we cannot afford to put a foot wrong, at least not if you work in Mowi. Then Sales and Marketing. In Sales and Marketing, our strategy is to further develop our #1 position in the market through product innovation, branding and customer centricity, which means we put the customer at the core of everything we do. So we will continue to develop new innovative high-quality products easily accessible to our customers in a delicate packaging. We will also continue on a long-term strive for decommoditizing the salmon category through our Mowi branding strategy. We have now launched the Mowi brand in 16 countries, and we will further develop these markets rather than going into new ones. So we do not end up spreading ourselves too thin. But at the same time, I think it's important to understand that most of the salmon is sold as a commodity and the fierce competition, particularly in Europe, resulting in a slim margin. So therefore it's key to be a cost leader here as well. So operational excellence is high on our agenda in Sales and Marketing. And I have to say it's very encouraging to see that we stand out on profitability in this part of the value chain because it hasn't always been like that, that I can assure you. This is the result of many very good decisions and hard work by our organization, from which we are now reaping the fruits. But I know that Ola and his team have more up their sleeve, which Ola will talk to you more about later this morning, amongst others, a EUR 60 million cost saving program. Then the cherry on the cake. Perhaps, I should say, cherry in the cage, Mowi 4.0, our digitalization strategy, which we launched at our previous Capital Markets Day in 2021 to facilitate a digital transformation of our value chain to make it more efficient and even more sustainable. And perhaps, needless to say, Mowi 4.0 is a so-called allusion or a reference to the Fourth Industrial Revolution and all the technological opportunities it brings. And for our part, perhaps most pronounced and evident in the sea phase and through our smart farming concept, where we give the analog world in the see, a digital voice through advanced imaging technology and intelligent sensors. And I think we can say we are progressed since 2021 because we now do real-time monitoring of biomass, digital lice counting and assisted feeding at selected sites to mention a few. We also use ROVs and drones for maintenance and surveillance and digital monitoring or the health status of the fish and the environmental conditions in the sea is coming. And we have rolled out remote operation centers in 10 out of 11 farming regions. But the big breakthrough, of course, today, we cracked the code for autonomous feeding and can track the constantly changing sea and the salmon's appetite for minute to minute. That will be a game changer and a technological innovation on par with the greatest dimensions all times in this industry idea is say because as we said just a few minutes ago, it is after all the single most important input factor in salmon farming accounting for more than 40% of cost in box and the lion's share of the salmon's environmental footprint. This is exciting stuff, and I can tell you, we are running trials as we speak. So personally, I'm convinced we will get there. It's just a matter of time. Good things come to those who wait, they say. So the digitalization of farming runs its course as it does on land in more than 30 factories through our Smart Factory concept. So let's have a look, seeing is believing. [Presentation]

With this, Kristian, the floor is all yours, so you can take us through the financial section and perhaps put a number on all these initiatives. Thank you so far.

Thank you very much, Ivan. Good morning, everyone. My name is Kristian Ellingsen, and I will cover the finance section of today's presentation with emphasis on costs and on financing. Cost is, of course, an important subject in all companies, but especially in salmon farming. And financing is always a relevant subject in a capital-intensive industry, such as ours. We want to supply the world with fantastic salmon products, such as the ones depicted here, and we want to do it in a way, which maximizes shareholder value, and then it's key to be a strong cost performer. And cost is one of Mowi's strategic pillars. We put great emphasis on cost containment. We have a strategic target of performing better than our peers in this area, the best on cost in the Sales and Marketing, best in feed and most crucially, the best cost performer in the various farming regions we operate. And this is important. We know that the conditions, they vary between the different farming countries, both with regard to environmental conditions, legal framework, the supplier industry, culture and other factors. So we are, of course, working on reducing the cost gap between the regions, but still some regions have lower costs than others. And therefore, the measurement must be fair and must be performed region by region. And this is a graph you see here. It shows the benchmarking of EBIT per kilo versus our listed peers. And over time, this benchmarking captures the differences in cost and operational performance because price differences, they tend to even out over time. And the conclusion is that Mowi is consistently #1 or #2 in the different regions we operate, and this is a strong achievement. Note that Mowi is the only truly global player in our industry. Our peers are generally regional players. Mowi has a strong cost focus and has had so for several years because cost-cutting initiatives are important to combat the underlying inflation. Other forces, which put pressure on costs, include biological measures and more complex regulations. Biology and operational performance, they are important cost drivers. If you have poor biological performance, if you struggle operationally, this will, for sure, increase your cost. We believe that biology will only widen the gap between good and bad performers in the years to come. And we have achieved operational improvements in the last years in Mowi through, for example, increased license utilization, positive scale effects, improved farming KPIs, but we continue to seek operational improvements through operational performance. And we have many exciting ongoing initiatives, which we expect will contribute positively, such as post-smolt, Mowi 4.0 and other exciting initiatives that we will talk more about today. In addition to improved operations, we also have direct cost-related measures, such as the cost savings program and the productivity improvement program on FTEs. And today, the business areas in Norway will look forward, present our plans, how to grow volumes, how to improve costs or to improve their operations. So today, we'll be mostly forward-looking. But now at the start of my session here, we will take a look into EBIT benchmarking results from the last years because our good results there, they provide credibility and trust when it comes also to our targets in the years to come. We start with our largest farming entity, Mowi Norway, which is divided into 4 regions. If we start with the region South, this region has performed very well for several years. And in addition to a favorable development in volumes and the license utilization, Region South has also worked a lot with their cost base. This is a well-performing business unit operating in a somewhat challenging environment. If you go to the other side of the country, Region north, then they have performed strongly over time. We have a solid #1 position in what is a good farming region in Norway and in the world. This is the single largest business unit in Norway farming. If we move on to Region West, we have also had several years with strong performance in this region following the split of the old combined Mid and West region back in 2021. And in Region West, we are also #1. In Region Mid, we initiated a turnaround process last year as we believe we have potential to lift our performance in this region through various measures that we will perform, even though we do not have the best site structure. But here, we are working on closing the gap between Norway and the top performers. In the other 6 countries, we do very well compared with peers. We are #1 in Scotland, #1 in Chile, Canada, Ireland, Iceland and #2 in the Faroes. And this means that we have improved our relative position since the last Capital Markets Day. Throughout this Capital Markets Day, we will focus a little bit extra on Norway since this region represents 60% of our volumes and then even higher share of our earnings. And this growth shows realized full cost for Mowi Norway versus all salmon farmers in Norway. And we see that although cost has increased for the entire industry, Mowi Norway has improved its cost performance markedly on a relative basis. This is due to better volumes, better operational performance and a strong cost focus. And we believe that this gap that you see here in the Mowi Norway's favor, this gap is set to just increase in the coming years with all the effects that are coming from post-smolt, Mowi 4.0, scale effects from higher volumes and our cost savings and productivity programs. This graph shows the development and realized full cost for the entire Mowi Farming segment in all 7 countries, and we see that the post-COVID inflationary pressure since 2021, which has lifted the cost curve for the entire industry, is starting to improve. It is the feed inflation, of course, which is the background for the increase here. And we now see a recent easing of this inflationary pressure with feed prices down approximately 5% year-to-date Q2 and expectations of continued feed price decreases driven by marine ingredients. This positive development has continued in Q3. But cost fighting is an everlasting effort and to structure our cost efforts, we initiated the cost savings programs back in 2018. And this work has evolved and expanded over the last years. And we have gone from low-hanging fruits to over 1,700 various initiatives throughout the company. The programs have covered several important areas such as renegotiations of contracts related to boats, treatments, nets, vaccines, services, fees, other items such as 50% cut in travel costs, 4% cut in energy usage. And these cost measures have resulted in a more cost-aware organization. In total, we have identified annualized savings of EUR 307 million since 2018, of which EUR 207 million in Farming. And this is in part why we also can show a better cost trajectory than the rest of the industry. And in the coming years, it's our objective to take this cost savings program to the next level, where we go from just cost savings through various initiatives to a higher degree of cost control. We'd like to become even more proactive and avoid cost, not just cut it once it's there. We are working together a higher degree of standardization in equipment and purchases across the units. This will reduce complexity. This will enable volume-based savings. Another area of standardization is, of course, the way we track and categorize document spending and costs so that we can perform better analysis, to check comparability between units and really chase all kind of savings across the units. And the cost difference of around EUR 2 per kilo between the good performing units and lower performing units is too high. And it's a clear objective for us to reduce this difference. In addition to standardization, we want to capitalize on Mowi best practices, Mowi insights. Mowi Norway and Faroes are our cost leaders. Chile is also doing well, while we have clear targets to improve the cost level in Scotland and in Canada. For some years now, we have focused on category management on spending, which we also expect will lead us to realize significant effects. And we also believe that we have a potential when it comes to focusing on life cycle costs where we don't want to sacrifice long-term savings at the expense of short-term savings. So we would like to combine a constant cost focus in our daily work with more refined spend and procurement strategies. The productivity program, FTE development, that has been a success story for Norway. Salary cost is the second largest cost item for us, and we can influence this cost item through the way we work through targeted efforts. Since 2019, we have realized a productivity increase on FTEs of as much as 18% from 9% less nominal FTEs and 9% higher volumes. We are on schedule to realize further improvements this year and next year, and we will maintain our strict FTE and productivity focus in the coming years. And these improvements, we expect will be realized mainly through natural turnover, retirement, reduced overtime, reduced contracted labor and automation. Mowi will maintain its strong focus on cost containment and cost leadership in the coming years. And here, we sum up some key contributors to what we estimate is a cost improvement potential in Mowi with overall effects of EUR 300 million to EUR 400 million. Some of the key components are post-smolt from less treatment costs, reduced mortality costs, better feed conversion ratio, positive scale effects. We have a Mowi 4.0 in Farming through improved growth, lower health costs as well as other cost improvements through working in a more efficient manner. The cost savings program from cost control, standardization, reduced the cost variation between the entities, life cycle focus and category management. The productivity program where we continue our strict FDA focus and expect to realize further improvements in line with our strong track record in this area. And of course, in addition to farming cost improvements, we roll out Mowi 4.0 in Sales and Marketing, related to improved efficiency, yield, automation and smart processing technology. We then move on from P&L and cost to the balance sheet. We have a very strong financial position in Mowi, with 51% covenant equity ratio. We are comfortably within our equity covenant requirement of 35%. We have a committed financing exceeding EUR 2.6 billion, where the bank syndicate sustainability-linked loan is the backbone. In addition to this, we have 3 bonds and 1 Schuldschein outstanding. Arctic Fish has a separate financing. And a strong balance sheet is, of course, important to support our capital-intensive business and to ensure that we can realize our growth plans. We are committed to maintaining our investment-grade credit rating obtained earlier this year from Nordic credit rating. Our dividend policy of 50% of underlying apps remains unchanged, and so we saw a long-term NIBD target of EUR 1.7 billion based on a harvest volume level of 500,000 tonnes. The same goes for a target of 12% annual return on capital employed pretax. So following this session where we have focused on cost in the P&L, then we go to the revenue side in the P&L. In other words, it's time to move on to Sales and Marketing. And it's my pleasure to introduce Ola Brattvoll, COO of Sales and Marketing, and we will show a video, while he gets up here on the stage. Thank you. [Presentation]

Good morning, everyone, and thank you very much, Kristian, for the introduction. As Kristian said, my name is Ola Brattvoll. I'm in charge of the Sales and Marketing division in Mowi, responsible for the downstream part of Mowi. Today, I want to take you through my division and what our key ambitions are for the future. Just a short introduction. Ivan touched already upon what the key features of Sales and Marketing is. And as Kristian said from the very beginning, our core focus is the customer. So what we do in Sales and Marketing is to try to create value from the raw materials farmed by the Farming divisions. And as Ivan said already, salmon is a fantastic product. It has incredible features in terms of quality and attractiveness to consumers. So our role is really to maintain that value as best as we can and add value by making the product more accessible and delicious for our end customers. So the key areas we work with, as already explained, is on product innovation, product development, branding and operational excellence. And of course, we are part of a Mowi, and we want to deliver results. And as you can see from the figure at the bottom of this graph, we have improved our results in the Sales and Marketing area, especially in the consumer products area, which is the value-adding part of the value chain, where our EBIT result has increased significantly since 2018. And in 2023, we had a return on sales of 4.3 on revenues, which is a good result also compared to our peers. As already explained, we are in all the main areas, where salmon is consumed, we have processing and sales network. And the most volume and capacity is in Europe, followed by Asia and Americas with about equal capacity. So to start with what is at the core of what we do. We are claiming that salmon is the food icon of the 21st century. And salmon has some fantastic quality, which makes it suitable to consumers all around the world. And we are of the opinion that salmon is addressing megatrends much better than most other popular food offers. And if you look to the protein consumption and the growth in protein consumption globally, salmon is one of the products, which has grown the fastest compared to all other proteins. And this is because salmon is addressing megatrends in a very good way. First of all, as already explained, salmon has credentials in terms of health, which is really strong, not only the Omega-3, which is a proven effect on cardiovascular health and other areas of your health, including brain health, but also when it comes to the quality of proteins, vitamins and minerals, you get a cocktail, which is quite unique and which is becoming more and more important to people when they choose what to eat. Health is at the core of what people think of when they choose what products to have for dinner at home. So salmon has a recognized and very strong position when it comes to health. But it's not only health as salmon has a versatility, which is extra good. Salmon fits eating habits in all corners of the earth. If you go to Asia, salmon is crucial for the sushi consumption, raw consumption. If you go to European cuisines, it fits very well with French cuisine, with Italian cuisine and with Spanish cuisine. It is well accepted in Latin America used for Ceviche or other dishes. You can have it for breakfast. You can have it for lunch. You can have it for dinner. You can eat it raw. You can eat it cooked. You can eat it on the barbecue. So it has a versatility, which goes beyond most other products. It fits very well with other ingredients. You can add taste. You can -- it has a delicate flavor, but still a quite neutral taste, which makes it fit very well with other ingredients, sources, spices, marinates and so on. So this versatility of the product, I think, is one of the key features that has made salmon so popular along -- in the world in different countries. I think sushi is one great example. You see a nice picture here of a piece of sushi from salmon. But sushi and salmon is a good mix and traveling well together as sushi spreads around the world. So even though the product is fantastic and the product has grown significantly, we are still a relatively small protein in the big scheme of things. And this figure is also interesting, I think, because it shows the total consumption of salmon in the key markets, and it shows the per capita consumption in different markets. And as you can see from this figure, the U.S. market is the largest single market for Atlantic salmon, but still has a consumption less than 2 kilos per capita per year, which is small if you compare it to all other proteins. And it is a growing protein in the U.S., although the last few months have been a bit more challenging. We have seen a very strong growth rate in the U.S. market over many years. And U.S. is now catching up with some of the important markets in Europe, which typically is from 2 kilos and up and France with 3.3 kilos, Germany with 2.2 kilos, U.K. with 2.4, Italy with 2.4. All these countries have a higher consumption than the U.S. And in my opinion, there is no reason why the U.S. consumer should eat less salmon than what the average consumers of Europe is doing. And I think a lot of that has to do with the availability of products. Products not being available in the shape and form, which modern consumers would like to buy is one of the key barriers for increased consumption in the U.S. And this we have addressed by opening up 2 facilities in the U.S., supplying prepacked fresh products to retailers all across Europe, all across the U.S., which has contributed significantly to the increase in consumption in the U.S. over the last few years. So in the U.S., we see a fantastic potential for further growth. We see an increasing interest in prepacked products, and we believe that this trend is going to continue. In Europe, we still see a growth of salmon consumption. We see that retailers are still making salmon the core of their seafood assortment and that they want to have salmon as a product to lead the seafood category. And we believe still there is a good growth opportunity in Europe as there is in Asia and in other emerging markets. So with this backdrop on the demand side, we see a future for salmon, which is not limited by the growth in demand for the future. And in sales and marketing, we believe that we have a unique position to take advantage of this growing demand. As already explained, we have a global footprint when it comes to processing and sales. In Asia, we have 6 different value-added factories. We have 2 factories in Japan, 1 factory in Korea, 1 in Taiwan, 1 in China, Shanghai and 1 in Vietnam. And these -- and then we have 7 sales offices in the same countries in addition to Singapore. And this is to cover a growing market in Asia, where we see that the emerging middle class is asking for more proteins and is more -- becoming more and more health conscious and that salmon is a product which they appreciate highly. And we see a strong potential for further growth in value-added products in the Asian markets. Looking to Europe, we have 11 value-added factories and 14 sales offices. And Europe is the most important market to us. And our biggest facility is in Poland, which takes pretty much half of our volume when it comes to value-adding globally and is distributing to all the main markets in Europe. There, we have a big advantage in scale, making us very cost efficient and enables us to serve all the big retailers with efficient, high-quality private label products. In Americas, we have grown significantly over the last few years. We have 3 value-added factories, 2 in the south, 1 in the North, 1 in Miami, 1 in Dallas and 1 in Maine. The 2 in Miami and Dallas is producing prepacked fresh products to the retailers in the U.S. And then we have a [ smolt house ] up in Maine, which is supplying smolt salmon to retailers all across the U.S. We have invested significantly in all our factories. And we have invested into more automation, more modern equipment to make sure that our footprint is adopted and cost-effective in the markets where we see the strongest growth. So our cost performance have improved. We have been cutting costs quite effective. I will return to that in a minute. And we are utilizing the fact that we have an integrated value chain, where we can link the raw materials all the way back to farming and make sure that we make the best allocation of raw materials to improve our cost performance and also to add value to the end products. Our all are -- facilities are well invested. We have invested in modern equipment. And I think if you compare our facilities to the average in this part of the value chain, we have an edge in terms of quality of assets. Looking to our customer network. We are present in all regions. We have connections with all the major retailers. We are the largest producers, the only global producer in this segment. And we have a link and a contact with all the major retailers in -- across the world. And we are known for having a high degree of product knowledge, and a high degree of innovation capacity. We have invested significantly into competence and procedures to be better able to innovate, to deliver more better products to customers all around the world. We work intensively with category management, so making sure that the salmon category stands out even already mentioned branding us with our vision to decommoditize the salmon category. So we used the brand as a spearhead in innovating the salmon category, benefiting both private label and, of course, our own brand, growing the total salmon category in the retailers where we launched the brand. So we believe that we have, with our setup, with our customer network and with our branding and innovation capacity, a quite unique position in the salmon market to be leading on the growth of salmon in all the markets where we are present. As already mentioned, the mission of the Mowi brand is to decommoditize the salmon category. And in many ways, salmon is a kind of silent product. And the brand is giving the salmon a voice. We want to start a dialogue with consumers. We want to explain to consumers the benefit of salmon and the benefits of Mowi salmon. So by investing into innovation, giving them more choice, more innovation and a higher quality, we give more value for the consumers. And by giving more value to the consumers by starting a dialogue with them, by starting to speak with the consumers, we also grow value for our key customers because what we see is that when we introduced the brand in a retailer, we attract new shoppers to that retail. And those shoppers are typically shoppers with a higher level of income, which has a more interesting shopping basket for the retailers. So it's not only beneficial for the actual sales of the brand, but it also add business to the retailers by attracting more interesting customers to the retailer, making them buy more other products, including their own private label. We have a very low degree of cannibalization, where -- when we launched the brand, we don't see that the brand sales are cannibalizing from the sales of private label. We actually get a higher shopping frequency in the retailers, where we launched the brand, and we get a higher basket value for the shoppers when the brand is launched. So by that, we also create more value for our customers. And of course, at the end of the day, it's about creating more value for Mowi, and the brand has, on average, more than 30% price premium to private labels in the category where we have launched it, enabling ourselves to finance the marketing activities for the brand and giving more shelf space for the category and also giving us access to new private label business within the category of salmon. So the brand has a dual role. It, of course, has a role to generate profits on its own, but it also has a role to grow the salmon category and to help us gain more market shares also in the private label space. So I want to show you a couple of examples of how we communicate with consumers. And these 2 examples, I will start with this from France, where we have launched the brand 4 years ago and where we engage heavily using social media to communicate with consumers. So this is 2 examples from something we did this summer, where we had a salmon wagon rolling across France with our products and meeting consumers, introducing the consumers to our products in retail, in other areas in France and then showing them how to cook, how to enjoy salmon and then posting it on Instagram and other social media to gain more awareness for the product. [Presentation]

A couple of small examples of what we do in social media and in-store activities. So in just 5 years, Mowi has actually become the largest global salmon brand. We launched the brand in 2019, and we are now present in 16 markets. So as I said, the business model is that we get the premium on retail of about 30%, which allows us to have a margin, which can finance all the advertising marketing activities that we do. So in 2024, the brand will be standing on its own feet, being operational EBIT breakeven. And from now on, we are going to make money from the branding activities. And this is, I think, quite an achievement in only 5 years, where we have invested quite significantly into marketing and advertising activities in the markets where we are operating. So by -- it proves that the business model is working. Of course, we know that planning is a long-term thing. It will not happen in 1 year or 2 years or even 5 years. So we are in this for the long run, but the business model is working, and we see a significant higher growth in the sales revenues of the brand compared to what we see in other salmon categories. Just a quick video before I move on. [Presentation]

All right. So as I said, the mainstay of our business is still private label. And in this part of the game, cost is of essence. So cost cutting, yield and efficiency improvements are pivotal to our business. And we have a global processing excellence team, which is active in 32 factories across 18 countries. And as the raw material is about 80% of our total cost in this part of the value chain to have an efficient raw material utilization is a key thing and yield improvements is at the core of this processing excellence team is doing. So they work across the different factories in different countries to improve the yield on our raw materials to make sure that we have the lowest possible raw material costs in the final products. And this is an area where we have achieved significant savings over the last few years. The second biggest cost component in value-added downstream business is salaries, and efficiency improvements and productivity programs is important to us in order to make sure that we are as efficient as possible. We are still a quite labor-intensive industry, and we see a great potential for further automation, further cost improvements by using new technology. And then in other areas, purchasing, overhead, SG&A costs, we have also made significant improvements. So a total focus on cost in the whole value chain with a key focus on raw materials, salary, cost and then other cost areas is at the core of what we do. And if you look to what we have achieved since 2018, it's quite significant. In yield only, we have achieved savings of EUR 38 million since 2019 or since 2018, sorry. And you can see from the graph below that these savings have come significantly over the last 3 years. And then the second most important area when it comes to cost in our part of the value chain, as I said, is salary cost. And in this, we have already saved about EUR 20 million, and we have reduced the number of FTEs, quite significantly, more than 2,000 people over the period since 2018. And this is by introducing new technology, by having a constant focus on how to do things more efficiently, lean manufacturing and so on. And then we have worked on other areas, including SG&A, energy, packaging and so on, purchasing programs and saved another EUR 17 million. So since 2018, we have saved more than EUR 75 million in sales and marketing with these areas. And the Processing Excellence team is the key driver for achieving these savings. But we don't think that it ends here. We see a significant potential from introducing more technology in our value chain to the Mowi 4.0. The smart factories strategy that we are implementing, we foresee to yield even more -- even significant savings in the future. And over the next 5 years, we are estimating another EUR 60 million in cost cuts in our part of the value chain from continuous focus on yield improvement, efficiency gains, productivity improvements and other areas of cost control, where yield is still at the core of what we do, and we see that using modern technology where we can link the raw material to the final product to make sure that we make the right allocation to optimize yield as a significant saving. But that is a very -- it's an advanced process that is required to make that happen because you have to make those choices on the spot. When you know the raw material coming out of the sea, you need to have a system which can automatically direct that raw material to the right factory to the right product to have the optimal yield. And this is where we believe that the digital technology can help us significantly. And these products are already on its way, being implemented, where we think we can achieve significant savings beyond what we have already done on the yield area. And then on efficiency, we see that automation, new systems for running our factories has the potential to achieve significant savings in that area as well. So the EUR 60 million cost cut target in sales and marketing is something we are quite confident about and that we think we can achieve over the next 5 years. So to wrap it up, in sales and marketing, we will continue to add value to Mowi by having a relentless focus on cost using our global processing excellence team and digital technology, automation to further drive efficiency through our value chain. We will continue to work on branding, grow our volumes, grow our EBIT by focusing on the markets where we are already in to get critical mass. We will stimulate further category growth for salmon by using the brand as the spearhead, and we see a long-term potential, which is significant in terms of volume and earnings for the Mowi brand. We will still continue to grow in selected private label segments. Overall, consumer products growth will be more or less in line with what the farming is growing. And then we will focus especially on continuous growth in the U.S. focusing on the prepacked market there, which we believe has a significant potential. We also see the same in Asia and modern consumers asking for more convenient products and prepacked products in Asia as well, a significant growth potential. And then we also see a significant potential for further growth in the ready-to-eat segment in Europe, where we already have invested significantly. You can see some of our products outside Sushi and Wraps, but we believe that in this segment, we will continue to see further growth for salmon in Europe. So with that, I end my presentation, and I hope that you have a chance to taste some more delicious salmon later today and also to take a look at our products outside in the [indiscernible] which is a nice representation of what we do on the branding side across Europe. Thank you for your attention. And now I believe it's a break until 9:20. [Break]

Good morning, everyone. My name is Øyvind Oaland, and I have the pleasure of walking you through the status and the strategy going forward for our Norwegian operation as well for our operations in Iceland. Farming Norway represents more than 60% of the total harvest volume of Mowi Group and operates every fifth farm along the coast in Norway. We organized in 4 regions from [indiscernible] in South to North of [indiscernible], and we control the full value chain, including broodstock and genetics, fresh water, seawater and primary processing. We have 21 small facilities, close to 150 sea farms, 11 broodstock facilities, including 2 spawning and egg production facilities on land and we operate 4 processing plants, 1 in each of our regions. We have grown our volume significantly over the past 5 years, and we will exceed the 300,000 tonne mark this year and estimate we will harvest 305,000 tonne hog in 2024. During the next 5-year period, we will further grow our business and primarily through realization of the value of our new postsmolt facilities. We will reach 355,000 tonnes by 2029. Alongside the volume growth, we are continuing to fight costs, which is key to compensate for the significant inflation we have seen over the last couple of years and also to continue to maximize our earnings. Our cost improvement program in Norway constitutes of our postsmolt strategy which will improve cost by increasing our productivity and volume growth as well as improving biological performance, including improved survival rates. As some of you saw example of yesterday, we are rolling out our digitalization program. As some of you saw example of yesterday, we are rolling out our digitalization program and smolt farming in all our regions, following our global cost-saving program, and we are continuing our turnaround in Region Mid. The growth projections indicated are not including potential M&As nor environmental licenses, which will have additional potential depending on the framework when they are expected to be launched later this year. License utilization is a key driver of volumes in our industry. The good work and productivity strategy carried out in the various regions in Farming Norway over the last years has closed the gap on the rest of the industry and brought us in the lead, where the current volume productions -- yes, closed the gap to the rest of the industry and brought us in a lead, but the current volume projections will take us close to 1,250 tonnes per license in 2024. The license utilizations will be further strengthened through realization of our postsmolt strategy on which we have just started. Before I move into some more details on the drivers behind the strategy for the next 5 years, I will give a short presentation of starters in each of the 4 regions and the way forward for each of them. Norway South represents 23% of the volume of Mowi Norway, with close to 70,000 tonnes hog projected for 2024. The farms in Norway South are in production area 1 to 3 from [indiscernible] and the processing facility Ryfisk is in Hjelmeland [indiscernible] just outside [indiscernible]. In Region South, we have realized a significant organic growth with more than 30,000 tonnes and 85% volume increase since 2018. This is true restructuring our stocking plans and improving our site utilization. We will grow our volumes further through significantly increasing the postsmolt numbers. The Fjæra postsmolt facility was our first to be completed and opened in the last quarter of 2023 and we will see full volume effects from '25-'26. In Region South, we also operate 2 farms with closed containment systems, also providing postsmolt for the region. With regards to smart farming, the remote operation center is established at our processing facility in Hjelmeland. Norway West represents 28% of the volume of Mowi Norway with 85,000 tonnes hog projected for 2024. The farms in Norway West are in production area 4 and 5 with the processing facility [indiscernible]. Region West has delivered strong results after the turnaround and demerger of Region West and Mid in 2021 despite operating in a challenging biological environment. We will continue to grow our volumes in the region through our postsmolt strategy. The Haukå postsmolt facility located close to Fjæra and [indiscernible] will be completed at the end of this year. And also our remote operation centers at [indiscernible] was our first regional center to be established and has delivered strong results and has been representing a model center for the [indiscernible] established and also the other regions. Norway Mid is our smallest region, representing 90% of the volume of Mowi Norway and projects for 57,000 tonnes for 2024. The farms in Norway Mid are located in production area 6 with the processing facility at [indiscernible]. As mentioned for Region West, Mid and West were demerged back in 2021 to strengthen local measures to improve biological performance and cost. The turnaround plan in Mid is in progress where our postsmolt facility at Norheim is an important part of it. Norheim, which we visited yesterday, is our largest postsmolt facility and was completed in the fourth quarter of 2023. We have further expansion plans for Norheim in our postsmolt strategy going forward, which I will refer to later in my presentation. [indiscernible], our 100,000 tonne [indiscernible] plant were completed on time and on budget in January this year and secures harvest capacity, both region Mid and North as our volumes from Region North in production Area 7 will be harvested at [indiscernible]. [indiscernible] Region South, [indiscernible] harvest transport is taking place with so-called [indiscernible], which means that the fish is harvested when being pumped on board harvest vessel and transported in closed tanks, [indiscernible] being chilled on the way to the processing facility instead of live transport. This is a method more biosecure than traditional wellboats with waiting cages, improved fish welfare and creates more flexibility on transporting across regions with potential disease restrictions and is the most cost-efficient setup also for [indiscernible]. [indiscernible] social housing, our regional remote operation center for Mid was opened last year. Region North, our fourth and biggest region represents 31% of the volume of Mowi Norway with an estimated harvest volume of 94,000 tonnes hog for 2024. Region North covers the operations in production area 7 to 12 with the processing facility at [indiscernible]. Region North is Mowi's best-performing farming region with good cost control, good site availability and good biological conditions, including survival rates. Due to its good growth and favorable conditions, North is a prioritized area for further growth. North is also operating its remote operation center and that's based outside -- based in Bodø. I will now give a little more details on key strategic areas of Farming Norway, which the ones of you joining us on the tour yesterday, also have seen some examples of in practice. The postsmolt strategy is a central part of our strategy to realize further volume growth in Norway. After closing the performance gap on license utilization, taking us to 305,000 tonnes this year, the capacity for postsmolt at the end of this year will enable further organic growth and improved biological performance. The commissioned projects at Fjæra in South and Norheim in Mid, the project at Haukå in West to be commissioned later this year and also the postsmolt from closed containment systems in South gives us a postsmolt capacity of close to 30,000,700 grams smolt and a 50% postsmolt ratio in our 3 most southern regions by the end of this year. Given the framework conditions are right, we will continue our postsmolt strategy. We are in the planning and preparation phase for another 4 projects, the Norheim facility in Mid has secured production capacity for another expansion project. In West, we are in the planning and preparation process for a greenfield at [indiscernible] in production Area 5. And in South, we are preparing for a possible expansion project at [indiscernible] in production area 2 where licenses are in place as well as preparing for a full renovation, including postsmolt at our facility, [indiscernible] in production area 1. Realization of these projects will increase our postsmolt numbers by another 20,000,700 grams smolt and provide additional volumes after 2029. We also see the potential for increasing license utilization and volume production through postsmolt in Region North and potential projects will also be evaluated and addressed going forward for this region. Farming salmon is about biological control where attention to detail is fundamental. Optimizing biological conditions, improving welfare and increasing survival rates are multifactorial. It involves interrelated challenges, the right knowledge and parallel approaches to succeed. Some of the more specific areas in which we are working and in which we need to improve on also as an industry is improving industry-wide by security practices, where the whole industry is now gathering around a set of measures for better control of infectious diseases. In Mowi, we are also seeing significant effect of genetic selection of broodstock and offspring with lower susceptibility for the heart disease, CMS, and we are working on the best methods for reduced lice pressure and more gentle lice treatment approaches. Our postsmolt strategy goes in parallel with these targeted measures as it improved survival, welfare and productivity, 3 effects, which are more generic. Through stocking bigger smolts and postsmolt at 700-gram and more, we will reduce the time in sea which reduces risk in sea and again, will reduce the lice treatment needs. It also enables us to carry out more strategic stocking, being able to adapt to site-specific biological risks. And it will also increase site capacity through increased turnover through shorter production cycles at the farms. Where we do postsmolt, we believe we will manage to half the cycle mortality. Mowi 4.0 and smart farming is another strategic area to enable us delivering on productivity, volume and also cost going forward. Through the smart farming concept, we will give our fish, our environment a digital voice, which we use for making the right decisions and improving our performance. We are currently using the title AI-based camera system in more than 200 of our pens. The title system has been developed by [ Alphabet's x ] supported by Mowi's R&D department and Farming Norway and delivers an all-in-one solution for real-time monitoring of biomass, weight distribution, lice, periodic growth performance and feed conversion. An autonomous feeding application is in progress. We have also established remote operation centers in all regions, which has improved feed conversion ratio by approximately 10%. We are using remote operation vehicles and drones for maintenance and surveillance, digital monitoring official status, welfare indicators and environmental condition, is coming. Through the Smart Farming, we will enhance knowledge generation and improve biological understanding. We see this as an important tool of further improving biological metrics, performance and fish welfare and also increasing productivity going forward. In Mowi, we are continuously evaluating the potential for improvements also with regards to the technology platform, which we use in our operations. With regards to close containment systems, we have vast experience in Mowi, being one of the pioneers, testing and supporting development of close containment when it started as R&D back in 2013. Today, we are operating 2 farms based on cross containment system, and we see this as a viable concept for postsmolt production in sea. We do, however, not regard this as proven technology for full cycle at scale. On subsea farming, which may have potential for improved life control, we are reviewing further implementation while we are trialing out the concept at one of our farms in [indiscernible]. Foundation for reduced lice pressure through shielding technology and also subsea farming has been tested and documented in collaboration with the Institute of Marine Research at our R&D facilities Center of Aquaculture Competence in Norway South which we have been running for several years. We're also using lasers for lice control on selected firms with close to 80 units in the water towards the end of this year. Through our Smart Farming strategy, we have established our Mowi Insight, a platform which compiles data throughout our value chain and through data capture, data analytics and real-time KPI monitoring, we enable enhanced decision-making and knowledge generation going forward. We continuously evaluate technology and we implement technology, which improves welfare, is cost-effective and which is scalable and generate value in line with the strategy of Mowi Group. Then I would use my remaining minutes on our operations in Iceland, Arctic Fish. Arctic Fish, where Mowi acquired the majority of the shares at the end of 2022 is our latest addition to the group, with 2% of the volume share and estimated harvest volume of 10,000 tonnes hog for 2024. Arctic Fish is based in Westfjords, the northwestern Iceland and is the largest license holder for growth of salmon in the region with 47% of the licenses. Arctic Fish has 13 seawater sites with operation in all the 6 fjord in the Westfjords, 1 fjord small facility and a new processing facility recently opened in [indiscernible]. Even though Artic Fish is currently one of Mowi's smallest units, we strongly believe Iceland has great future potential. Iceland has unique nature giving conditions for net-pen farming. And if the framework conditions and politicians would allow for it, we believe there's potential to grow the industry to become a significant player in the salmon industry like what has been realized in the Faroe Islands. During the next 5-year period, the focus for Arctic Fish is to grow the volume by utilizing our license portfolio through establishing new seawater firms, increasing the small stocking numbers and also stocking larger smolts. We are targeting just below 30,000 tonnes hog by 2029. We have introduced a cost optimization program following the model we have elsewhere in Mowi, also for Arctic Fish. The cost level is currently too high in Iceland, and we have set a target to establish a cost level in line with what we achieved in the Faroe Islands. We believe this is the most comparable unit and also a cost level, which we believe is within reach. Feed supply and sales are provided by Mowi, creating synergies and value for both companies. Arctic Fish has an attractive and sustainable value chain for realizing the growth potential going forward. We have a modern and high-capacity smolt facility with RAS technology with good geothermic conditions. We have plans for expansions on additional ongoing capacity to grow this smolt bigger. We have our seawater sites strategically located in all the fjords in the Westfjords and a setup that enables alternating production to minimize biological risks. On the processing side, we have a state-of-the-art processing facility from 2024 designed to fulfill the short- and long-term needs with the current capacity of 50,000 tonnes hog. So this summarizes the highlights from Farming Norway and Iceland and how we are working strategically and targeted to realize both volume growth and a competitive cost level also going forward. So thanks a lot. I will hand over the microphone to Ben Hadfield.

Thank you, Øyvind, for the introduction. As Øyvind said, I'm Ben Hadfield. It's my pleasure to present to you today Scotland, Ireland, Faroes and Atlantic Canada, Canada East [indiscernible] Mowi. Starting with Scotland, we project an increase from where we guide today at 64,000 tonnes to over 80,000 tonnes of GWT. We'll achieve this first and foremost, by stocking more smolts, but over the next couple of years from '25 to '27, we will rise from 20 million to 26 million smolts. We also intend to move into postsmolt in a slightly different way than what Øyvind explained, but with much of similar benefits being realized in the sea. We have made an acquisition of 2 small companies recently. Wester Ross is in the north of the country. It gave us approximately 1,500 tonnes of additional capacity. It also gave us a big geography to expand within and modernize the farms, and it gave us fairly niche and high price, even brand U.S. than U.K. In terms of postsmolt, this is going to take place in the mid part of the country in a region called [indiscernible] and I'll come on to that later. Cost control within Scotland is a significant part of what we do. We've rightsized the organization after the mergers dropping FTE by 15%. And we've made processing automation to secure processing capacity above 80,000 tonnes in our [indiscernible] facility in Fort William. Salmon is the U.K.'s largest food export, is actually second after whiskey in terms of value, but said something about Scotland, and we will not go there. It's subject to stable science-based regulation. The regulation is quite bureaucratic. It takes time. You should think about 3 years for a license to come through, but we are able to develop new sites in Scotland for relatively low investment cost. We employ quite a large and comprehensive team to do this. And so part of the expansion will be the continued securing of new licenses. We secured one at the end of last year in the South of the country in a place called [indiscernible] for 2,500 tonnes of MAB and we fully expect to secure a new side by the end of this year and several going into 2025. In terms of postsmolt, look, it's quite unique within Scotland. It's a brackish semi-saline system. It's quite a deep block, 150 meters deep in the middle. It has an MAB production in 4 sites for around 4,000 tonnes. It has, unfortunately, a fairly narrow entrance, but we've managed to work our way through this. And 10 days ago, we started to move the postsmolt around 900 grams from Loch Etive to the large MAB consent in [indiscernible] where we have approximately 7,500 tonnes of MAB. So I checked last night, and we have, at this point, moved to 1.5 million fish at 900 grams. So we've got around another 800,000 to go and how we intend to use a system is to produce 2 batches of approximately 4 million postsmolts at 700 to 900 grams twice a year with 2 following events, all sea lice control, principally because of the following in the cleaner fish program. But also because it's brackish, we don't get any Amebic gill disease or gill damage. So it's quite rewarding to see when these fish are being moved to the sea, the gills are perfect and that's a good sign for what we tried to achieve. When we bought Dawnfresh, they also had significant freshwater lake rearing facilities. To put this in context, we have 5 other lochs where we grow smolt for the sea. Added up, it's 960 tonnes MAB. What we acquired with Dawnfresh in Loch Awe was 2,000 tonnes MAB. So this is a big part of increasing our smolt production but also increasing the smolt size. So from, we hope to secure the final permissions by the end of the year and produce around 5 million fish smolts at 250 to 300 grams, and they will go to the western aisles and effect move us toward postsmolt with a much larger smolt being stocked in these sites. We have actually fully costed, designed and sought the regulatory permissions for a land-based postsmolt system adjacent to the feed mill in [indiscernible]. And we keep this on the back burner, and we'll keep it shovel ready. But first, we'll execute the project in Loch Etive and Loch Awe and then be ready to move forward with that. The second major part of a successful biological turnaround in Scotland is the breeding of Mowi genetics, fully 100% within Scotland. It's difficult to admit, but it's been a challenge for the entire Scottish industry that we see in the sea phase mortality of 15% roughly with Mowi strain. Unfortunately, with third-party strains due to lower egg quality and poorer performing genetics, we've seen mortality above 40% in the [indiscernible], and that's a real handicap for Mowi Scotland and also the Scottish industry. So our solution to this is to breed 100% of our egg requirement and actually more than that for contingency and third-party sales and a new bespoke category, which is constructed in Ardessie. This will produce around 40 million Mowi eggs and is scheduled to be complete in Q3 2025. I think we made a good decision looking back to bring the Mowi [indiscernible] eggs into production. So we have the families represented within production, and we're able to expedite this move to 100% Mowi eggs relatively quickly with this investment. Cost control and cost reduction. Scotland has a differentiated feed strategy. It produces organic label [indiscernible], different brands, particularly for key customers. That increases feed costs, but it increases production costs at the same time. We're focused on reducing costs significantly in Scotland through scale effects in the rise in volume through consolidation of the farming base moving from smaller, more numerous pens at 120 meters into and, as you've seen in Norway, 160 meters and also some 200-meter pens in what we would class open sea areas. After acquiring these 2 small companies, I think we feel that it's gone relatively successful, but they came with quite a high number of FTE and a level of productivity that was much lower than what we have in Mowi. So we have taken the FTE number down over the last couple of years from approximately 900 to 760. And this is done now. This is actually at about that level now, and we'll hold it there. We have the opportunity to follow what's been done in Norway, leading with high-capacity [indiscernible] boats and well boats. So we will reduce the fleet significantly in Scotland and taking the unit cost of harvesting fish and treating fish down significantly. Okay. So on to Faroes Island and Canada East. I like farming in the Faroes. It's a kind environment. Faroes is a relatively small business unit for Mowi, just 3 sites, very efficient, and as I said, a great environment for farming salmon. We'll maintain high-quality production, high pigment and high harvest weight yield. We will seek a lot of synergies with Scotland in terms of things like passive grading and also the management of health. We will seek to incrementally increase Faroes to around 12,000 tonnes. It's worth noting that actually Faroes was the first place that Mowi did postsmolt, and it's worked really well for us. So today, we put out smolts above 500 grams. We'll make changes to the hatchery, improve the growth and target that move from 500 to around 800 grams over the next few years in Faroes. In Ireland, we've managed to recover from poor biology and lower harvest tonnage. So we're forecasting to be above 10,000 tonnes this year and then stay there. Ireland has exceptionally high-quality salmon and the real price premium within the market. It's almost 100% organic production. We will hold the capacity at 10,000 or more tonnes, but we'll seek every synergy that we can from Scotland. So the equipment that comes into Scotland new with actually quite preferential terms for investment in the U.K. and we take that equipment and utilize it fully in Ireland, which takes our sustainability goals, but it also makes use of every bit of asset that we have. In terms of Canada East, we're in our third year now of actually very stable biology, much lower sea lice levels, dramatically lower levels of mortality and high harvest weight. So volume is now building. But we're quite humble about how challenging this region can be. In the winter, you can have 1 degree in the sea. And in the summer, you can have over 20 degrees. So it's still a challenging unit to farm. But we're becoming more comfortable with growing the biomass here in a controlled cost-effective way. We think that we've rightsized the business in terms of the number of people and the efficiency, and we're targeting over 15,000 tonnes with a steady increase in smolts from 5 million to above 7 million. We have revisited the licensing for the recirculation unit. So we'll do a full environmental statement and secure the move from 1.5 million smolts to 6.5 million smolts and we've managed to take the broodstock into a much more secure biologically contained environment, and it's very pleasing to see ISA challenge drop in this region. And yes, actually, some of the largest fish that we've seen last year and then this year come from Canada East, which is a nice change in fortune. Okay. Thank you very much. It's my pleasure to invite Fernando to present Chile and British Columbia.

Hello, everyone. As Ben say, my name is Fernando Villarroel. I am the COO for Chile and Canada West. I have the pleasure today to be presenting these 2 business units that represent almost 20% of the total volume for Mowi Group with 95,000 tonnes estimated for 2024. The main emphasis of the presentation today will be Chile. We'll focus on trying to explain you what are we doing there to have an efficient production and low cost while we try to grow our business on a sustainable way. And also I will cover some particular aspect of our Canadian operations, and I will start for Chile. Yes. Our operations in Chile harvested 69,000 tonnes in 2023 and with an estimated volume of 72,000 tonnes in 2024. All these [indiscernible]. We have 2 products in region, Region 10 and Region 11. Those 2 regions are fully integrated from egg to processing operation and with a more or less an even distribution in terms of production. We have no operation in region 12, and at this point in time, we have no intention to enter into new production regions in Chile. We're operating around 36 seawater sites with around 27 to 28 operating at one given time. We own in Chile, more than 150 license, and then it means that we have some -- still some unutilized capacity, but also means that the license that were used are the only one located on the best production region on the very production region with the best capacity. The strategy, continued focus on organic growth, trying to maximize the stocking within the existing regulatory restrictions that we have in the country, which should give us in Chile around 5% annual growth. To achieve such growth, we are concentrating on developing our own exiting assets through organic growth. I will come back in the next slide, how we're doing this on the presentation. Our objective and efforts are having an efficient production at a low cost. Chile, when compared with other production regions, it has a very competitive biology and fish welfare, but also very competitive cost. In addition, the industry in Chile, but Mowi in particular, has experienced a very rapid technological advancement, adding more automation and technology, which I will touch more in one of the slide that I have further in the presentation. For the last 5 years, our strategy and focused on organic growth. And since 2018, we have delivered already 20,000 tonnes on additional harvest volume, and we plan to deliver another 20,000 tonnes in additional growth within the next 5 years, targeting 95,000 tonnes for our business operations in Chile. We have unutilized licensing capacity, then we have been growing gradually our production volume online with the demand. Such a strategy has been done at considerably lower cost than if we were to acquire existing capacity in the country. The existing regulatory regime in Chile use the future smolt stocking to control the sanitary situation in the country. But also, consider some incentive for growth for those farmers that have a good sanitary condition of performance, which is a sort of traffic light system, which is based on mortality, antibiotic usage and sea lice management. This is the reason why Coho has become a very popular species because of its low use of antibiotic and low mortality, which is one of the key indicators that has a positive impact for future growth. Then if we want to grow in the country above the traffic light system, it has to be done, what we call it under density rule, which means using a density on the 4-kilo per meter cube instead of 17 meter cube, which is the normal conditions in Chile. So we have a frame agreement with a Coho producer where they transfer stocking right to us and in exchange, they get access to some of our unused licensing capacity for their own production via renting or even selling licenses if in case we don't need or we don't use it. As you saw in Kristian's presentation, Chile were the low-cost producer when compared with our peers down there. This is due to our strong focus on having an efficient production and cost control. In seawater, we're aiming on using larger and fewer sites for economy scale, trying to use the best license in thermal capacity, environmental impacts and biological performance. Mowi Chile has also the lowest fee in the group due to the flexibility of raw material basket that can be used for feed ingredients, but also due to proximity of the main market for marine and vegetable raw materials. We have made, as you can see, significant progress investing in technology, automatization and process improvements that have resulted in an increase of our productivity by almost 60%. Also, we're moving fairly quickly towards the concept of Mowi 4.0 and Smart Farming. And coming back, I have a special slide for this one. And as you can see, as you probably saw even on Kristian's presentation, in Mowi, there's a great attention on cost as one of our strategic pillars. And in industry like ours, focus on cost is one of the key aspects and is one and is on the core of our operation. We have cost savings for over EUR 20 million since this initiative started in 2018, put a lot of attention operational expenses through optimization of operation and through procurement. In terms of biology and welfare, Chile for the last number of years, have a fairly stable sanitary situation with very competitive welfare indicators. In terms of survival, we are among the best in the industry. We use data science to extract, analyze information to understand the issues and try to make the right decision of fish biology including the use of new available nutritional concepts to improve fish robustness. We have a very advanced genetic program that focused on growth, disease resistance and fish quality, which are the main -- most relevant trade impacting profitability. Chile, as all companies within the Mowi group, focus a lot of animal welfare. And to improve, we must measure as indicated. And indicators and methodology being used at the same used in all business units across the group. Advancing towards the concept of Mowi 4.0, Smart Farming is something that we're progressing very rapidly in Chile. In terms of feeding, we have already several sites being fed from our remote operation centers, and within the next year or so, we plan to have all sites being fed centralized from 2 centers, 1 in each region. We're using multipurpose camera for feeding and biomass estimation, artificial intelligent/machine learning to support those feeding activities. Photoperiod LED lights, that we want to see there to boost growth within other technologies to improve our FCR and improve the growth. In terms of environmental matters, climate change is impacting all production areas around the world, increasing the environmental challenge for sea farming. Then as a farmer, we must adapt. We're using drones during the summer months to algae bloom monitoring and starting to use artificial intelligence based image technology for phytoplankton identification and counts. And in the event that we get an algae bloom, we have all sites with air bubble cartons, as you can see in the farm there and diffuser to mitigate such events. The use of ROVs is extensively used in the industry and for several Mowi Chile now does not use divers anymore for [indiscernible] removal. That technology, the remote operation vehicles is advancing very rapidly, and now we're using ROV to help with anchor installation, to do maintenance of the anchoring, also to repair nets and for installation for some of the submerged equipment. In summary, in the case of Chile, we're advancing very rapidly toward the cost of Mowi [indiscernible] which is helping us of our world of having an efficient production at a low cost while we continue growing our business over there. I will move to Canada West. Our business activities in Canada are located at the door of one of the largest market, that is U.S. However, during this year, the Government of Canada a 5-year license until June 30, 2029. At the same time, it was announced a new policy that after June 30, 2029, the industry must move away from traditional open net pen in sea and move to close containment either on sea or into land. Over this past weekend, we received a draft transition plan from the Canadian government. Unfortunately, that draft plan didn't provide much clarity to us as farmers. It was more like a guide to continue consultation process with fishing nations, suppliers and industry in general. A strategic review for this operation is undergoing, and all options are being considered here. But we need more clarity on the transition plan to have a better picture in terms of what to expect from this business unit. It's very important to clarify that this decision or this policy made in Canada does not affect at all our Mowi Canada East operation. And that will be my part, I will give Atle to do the Feed.

Good morning, everyone. My name is Atle Kvist. I'm the CEO of Feed in Mowi. We have 2 feed mills in Europe, one in Norway and one in Scotland and our daily focus is on making high-performing feed at low cost. Modern facilities combined with efficient logistics and supply chains gives us a good basis for low-cost operation. We are turning every stone in our long and complicated value chain to identify and attack cost drivers. We have high focus on sourcing sustainable raw materials, widening of our raw material basket and last but not least, to develop new sustainable feed ingredients. Going forward, we'll continue to grow in line with farming volumes in Europe. Our current capacity, the 2 field mills combined is 640,000 tonnes. Today, we have reached full capacity utilization in Norway. And we will, as Ivan mentioned earlier, increase our production capacity in Norway with 60,000 tonnes in 2027. It will be a small cost-efficient investment. We will use as much of the existing process equipment and infrastructure. Last year, we produced 528,000 tons. This year, our forecast is in the range of 560,000 tonnes. The development since 2019 has been quite fantastic, impressive with more than 20% productivity improvement and excellent feed performance. Picture on the left shows Valsneset that we visited yesterday, our first feed mill that we opened in 2014, has 2 high capacity production lines, premium coastal location in mid-Norway. Here, we can handle 3 vessels efficiently at the same time. In the picture, you can see 2 of our state-of-the-art feed vessels being loaded and one raw material vessel ready for unloading. In 2023, the cost-efficient feed mill set a new production record at 405,000 tonnes, which is, as I mentioned earlier, full capacity utilization. On Valsneset, we deliver feed to Norway and the Faroes. Picture on the right shows our second feed mill in Kyleakin [indiscernible] that we opened in 2019. It's a highly flexible feed mill with 2 production lines, one high capacity line and one medium capacity line set up to produce even the smallest feed sizes. Also here, we have a deepwater peer, allowing for efficient bulk transportation of raw material to the feed mill and feed out to the farms by larger vessels. On Kyleakin, we deliver feed to -- freshwater feed, seawater feed and organic feed to Ireland, Scotland, Iceland and Norway. Our feed mills are highly automated. Within feed, we see 4.0 is a fantastic tool in making high-performing feed, especially designed for Mowi Salmon strain. Our productivity has increased through smart operations and 4.0 gives always new methods, established methods and new edge, drives cost reduction and enhances sustainability. A small example of how we use 4.0 technology today can be seen on the picture. Previously, during production, we quality checked if the feed floated or not. We didn't have solutions for monitoring sinking speed of the feed. Using 4.0 technology, we have developed systems that continuously measure sinking speed during production. This gives us valuable input to further develop our cautious improvement models. In short, better prediction and control of product quality. Going forward, we're also convinced that 4.0 smart operation will make our interaction with farming even better. Our guiding principle is that every single pellet must deliver 100% of what the fish needs every day. The pie chart gives an overview of the main ingredients in our feed today, and we see it as our job to widen the raw material basket further. With continued investment in feed R&D, we continue to pursue alternative feed ingredients that provide necessary nutrients for state-of-the-art feed. Modern feed formulas and feeding skills, makes us a net producer of fish with a fish-in-fish-out ratio of 0.56. Our feed is good for the fish and good for Norway. In Mowi, we set a clear targets -- environmental impact targets. And within feed, we are building systems that continuously predict systems -- the direction towards the targets, incorporating decisions that we have to take on a daily basis. And with regards to new sustainable feed of raw material, our target is 10% to 15% inclusion by 2030. And in 2023, we achieved 4%. In order to have a structured approach to widening our raw material basket, we have established a new raw material selection program. New raw materials that will be a part of our basket will have to have a low carbon footprint, the required nutritional value be available in sufficient volumes and last but not least, be cost competitive. During the last couple of years, we have also developed a global supplier engagement tool. This is now fully rolled out with running ESG due diligence of the entire feed supply chain. In the right hand picture, categories can be seen for an approved supplier in over system. We are sourcing raw materials globally and with a clear target on sourcing as local as possible. We have, and we follow a strict policy on sourcing sustainable feed raw materials. All ingredients we use should have a traceability system in place. Marine raw materials we source from supplier would have to be responsible fisheries and that are certified as sustainable. Also, we use in our feed is 100% deforestation feed. We have a zero tolerance approach to modern slavery and the Mowi code of conduct shall be -- for suppliers shall be followed. Thank you. The next is a 15-minute break before Catarina presents R&D and ESG. [Break]

Good morning, and welcome. My name is Catarina Martins, I'm the Chief Sustainability and Technology Officer for Mowi. So let's start with R&D first. Mowi's R&D organization is the largest in the aquaculture private sector. With 4 R&D excellence centers, we are providing impactful solutions to our breeding, feeds, farming and sales and marketing. We existed for more than 20 years now. And over the last 3 years, we have invested more than EUR 100 million in R&D. We have R&D networks present in all the farming countries where we operate, and that's really important to always to make sure that knowledge is shared and that we accelerate the implementation of that knowledge in key topics such as fish health and welfare, sea lice, postsmolts and smart farming. Our smart farming and smart factory concept sit at the heart of the R&D work we do. So let's start with smart farming first. So at all stages of salmon growth, from smolt and postsmolt production in our recirculating aquaculture systems, through our closed containment systems and full-grown salmon at sea, we are implementing cutting-edge technology that enhances fish health and welfare. In our health systems, we are measuring water quality in real time. And this is really important because it facilitates operating the systems in optimal conditions. It also allows us to conserve water and to prevent any system failures and as well optimizing the conditions for the fish to avoid stress and disease. Our closed containment systems have been producing postsmolts now for more than 10 production cycles, and there, we are also implementing a lot of knowledge that is being generated over the last 10 years. Today, our production protocols really apply knowledge on the way we use lights, the way hydrodynamics happens on those tanks and also on how to best capture and reuse sludge. Our R&D efforts are truly transforming the way we farm at sea, transitioning it from traditional farming systems to smart farming. We are using robots to clean our nets, and we are using the next-generation underwater cameras that allow us an unprecedented visibility and control underwater. Our smart factory concept complements our smart farming concept in our journey to effectively manage a fully vertically integrated value chain, which is really special for Mowi. So all the way from our primary processing plants through our secondary processing plants to our global Mowi brand, we are implementing really exciting tools. So for example, we are implementing data-driven decision-making with our Mowi Insight platform. And we are also using control factory systems centers, just like we are using for smart farming, so that we enable global benchmarking so that we are able to help our operations in terms of improving yield and also overall equipment effectiveness. Also at the end of our downstream, we are using market insights so that we can improve our consumer processes, which is so important for our Mowi brand. So let's take a look at a few examples of our smart farming journey so far. [Presentation]

Great. So considering all these technological innovations, we believe the future is bright. And Mowi's vision on leading the Blue Revolution is really at the core of what we do every day. What does that mean for us? It means really unlocking the opportunities that the ocean offers to produce more food. And as we have heard already throughout this morning, production of food, as we do it in the sea, it's quite unique. It's very difficult to find any other type of food production that combines environmental benefits, nutritional benefits, the versatility and also the consumer preferences as effectively as salmon farm does. And we see here from this slide, the several different types of environmental benefits: from a carbon footprint perspective, from a land use perspective, from a freshwater perspective. And of course, the opportunity that gives to provide jobs to local coastal communities is also quite unique. That is possible with our sector. So we are forming our salmon sustainably, and this has been recognized by a number of global benchmarks and ratings. FAIRR has already been mentioned today, it stands for Farmed Animal Investments Risks and Returns, and it has been benchmarking the 60 largest animal protein producers in the world. So aquaculture companies together with chicken, with pig, with poultry, with cow, so on a number of key environmental and sustainability and social metrics from animal welfare, from greenhouse gas emissions, from food safety, from sustainability governance, but also from human rights, from health and safety elements of our own workforce. So it's really with great proudness that Mowi has been ranked the #1 for 5 years in a row. In addition, in 2024, this year, the Times Magazine has recognized Mowi on the Top 500 Most Sustainable Companies in the World, and this is food companies and nonfood companies altogether. And this is really the outcome and the result of our hard work on our sustainability strategy, which is called Leading the Blue Revolution plan, but also because fish, they have biological differences which make them very sustainable, which makes them very efficient in the way they utilize their resources. This is a snapshot of Mowi's sustainability metrics, revealing the commitment but also the performance we are having on a number of environmental topics which are very important. So for example, in our greenhouse gas emissions reduction plan, we have managed to reduce 36% our Scope 1 and 2 emissions since our reference year of 2019. We are also having 95% of all our sites globally with a minimum seabed impact and also 100% compliance with our sustainable feed sourcing, which Atle referred to covering 100% deforestation-free soy, but also a sustainable sourcing of our marine raw materials either being [indiscernible], marine trust certified or being part of a fisheries improvement project. So it has been really a fantastic sustainability journey for us. I also want to mention that our climate targets have been updated in 2024 to be aligned with 1.5. And we have also set FLAG targets, which are specific for our vegetable feed raw materials. We have been in a fantastic journey on reducing our dependency on fossil fuels. And one of the most important actions we are taking there is to deploy hybrid energy system, so basically using batteries on our feed barges, as you can see there the numbers, allowing us to reduce by 50% to 60% the use of fuel in our marine sites. So yes, we have talked about differences between fish and land animal proteins. One of those differences that refer to FCR and greenhouse gas emissions, it's really connected with the basics of biology, right? So as you all know, fish swim in the water and they also don't need to spend energy on keeping their body temperature constant, as we do as mammals and so a pig, for example, or a cow would. And the consequence of that is that the FCR for fish is lower, and consequently, the greenhouse gas emissions is also lower because they are more efficient in the way they use their resources. But that's not only the differences between fish and land animal proteins. There are also other differences related with their reproductive biology. So let's go back to basics because this is quite important. So let's take a look at the female salmon. Typically, a female salmon would lay between 10,000 to 15,000 eggs. So fish are typically considered as R strategies. What does that mean is that they have an external fertilization with a higher number offsprings of reproductive cells, lower survival rates, and they are much more influenced by environmental conditions. And likely, for example, a pig or a cow, you can see the number of offsprings. It's much, much, much reduced. And that is part of them being a K strategist. So they have internal fertilization with a significantly lower number of reproductive cells and offsprings with typically higher survival rates which are much less influenced by environmental conditions. So biologically, fish are not expected to have high survival rates. And despite that, we can see here the numbers comparing farmed salmon and wild salmon. And we see that farmed salmon, because of the more controlled environmental conditions that they are exposed during farming, they have a much higher survival rate, between 82% and 87% as compared with wild salmon with a typically 5% to 35% survival in the wild. When we also look at the production time, it's actually very interesting to see as well that Atlantic salmon production time is significantly longer than the most land farmed animals, as you can see here, typically 15 months at sea compared, for example, with 1.2 months for chicken. So naturally, that will also lead to higher mortality rates with longer production cycles. Despite that, when we actually convert those numbers into monthly mortality rates, then actually we see that farm salmon has 0.7 monthly mortality rates as compared with the other farmed animals here. for example, pig with 2.9; chicken, 2.2; lamb with 1.5. And that's actually quite significant lower monthly mortality rates when we consider both these differences in reproductive biology and also the longer production cycle they have. So we see that mortality rates in the Atlantic salmon industry -- farming industry has been kept more or less constant over the last 30 years. So these are contrary numbers. And it's quite important, everything that you have been hearing today on our postsmolt strategy and our smart farm strategy. Because that, in combination with many other things that we are doing, including vaccinating 100% of the smolt, improving further vaccines that we have available, training of employees, working with our suppliers, efforts on R&D, you name it, we are strongly confident that the biological metrics will improve as well fish survival and welfare. So that's what I had to tell you today. I'm very happy to give the words to Ivan for a final conclusion and a summary of the key messages we have today. Thank you.

Thank you, Catarina. Much appreciated, and encouraging stuff, I have to say. Then it's time to conclude with some closing remarks before we wrap it all up with our Q&A session hosted by our IR, Kim Dosvig. As the first bullet point reads, our clear goal and ambition is to grow our farming volumes by 100,000 tonnes organically in the coming 5-year period: from 500,000 tonnes this year to 540,000 tonnes in 2026 and further to 600,000 tonnes in 2029. That means a CapEx of EUR 600 million. And this farming volume growth, we believe, will translate into a topline growth of 7% to 8% per year to the rest of the value chain, to EUR 8.5 billion in operating revenues in 2029. And our main focus is field-based salmon farming with related technologies, but we keep our eyes and ears open for other solutions. Because nothing is carved in stone in Mowi, absolutely nothing, we do works at all the times, whatever that is almost. And we will continue to pursue accretive M&A opportunities when they arise and fit into our strategy. We'll also continue on our crusade against costs because we still -- or we believe that we still have an untapped cost-saving potential of EUR 300 million to EUR 400 million in our value chain, which we want to realize. And keywords are our postsmolt venture, our smart farming concept, smart factories, in addition to initiatives that are more cost generic in nature. And the same postsmolt venture and smart farming concepts, we believe, will improve our biological metrics considerably in the coming years, including survival rate. Sales and marketing and feed, we will grow with Mowi farming. And in sales and marketing, we will further develop our #1 position in the market through product innovation, our Mowi branding strategy and by customer centricity. In feed, we will continue to have a laser focus on feed performance and cost because as we have said a few times already this morning, feed is after all the single most important input factor in salmon farming, accounting for more than 40% of cost in box and the lion's share of the salmon's environmental footprint. So we simply cannot afford to put the foot wrong. So with this, Kim, I think we're ready for the Q&A session. So if the rest of the group management team can please join me on the stage or perhaps not on the stage, but at least on the floor.

It's Alex Aukner from DNB. So two questions. First of all, could you give a breakdown of the cost-cutting potential, the EUR 300 million to EUR 400 million, where is it going to come from? And how much is from feed, how much is from good old cost cutting? And also, when we sum up the harvest guidance for the individual regions, we get to a number quite a bit above the 600,000. So maybe a comment on that.

Yes. So maybe Kristian can take the cost part of that question. I can start off with the end, just to break the chronology. So that's correct. We like to use conservatively Mowi. We like to have a contingency. So you are correct. So the 100,000 tonnes number is what everybody say is the best estimate. But of course, if this 100,000 tonnes number is what we would say is the best estimate. But of course, if the sun is shining, everything is great. Perhaps not shining, but it's raining a lot then we could do more. But 100,000 tonnes is target. And your observation is 100% correct. We have some contingency in these numbers. So maybe you can say a few words about the cost part here, Kristian?

Yes, I can, Ivan. So if you take Ola's presentation, he indicated around EUR 60 million improvements in sales and marketing related to yield efficiency improvements there. We also have around EUR 40 million in the cost savings program related to sales, marketing and feed. And then the remaining around EUR 300 million is then related to farming, an improved farming cost. So it's around 1/3, I would say, on postsmolts, on the lower fuel conversion ratio, lower feed cost, the lower treatment costs. partly offset, of course, by higher smolt costs. But in general, a lower mortality and health cost offsets that together with FCR. And then around 1/3 in Mowi 4.0 and around 1/3 on in cost savings initiatives in farming in general related to taking down the cost differences between the units, related to procurement all the works that we are doing in the various units to take on the general cost level. I would also say that when it comes to Mowi 4.0, we have been -- you know us, Alex. We would like to be a little bit conservative in our indications and estimates. So I think we have a large potential in that number. We have mainly indicated improvements in Norway, where we start rolling out Mowi 4.0. But we all know that we have a big potential when it comes to Mowi 4.0 in Chile, in Scotland, in Canada. And that will actually then come in addition to that.

Christian Nordby, Arctic Securities. When I just look at your 600,000 tonnes volume guidance and your revenue targets, I see quite an increase in implied group revenue per kilo. And is that driven by more branded sales? Is it price achievement? Is it other things? Can you just give a little bit of a breakdown on how you think about that?

In total, the incremental part is the rest of the value chain, which I phrased it, and the branding is an important part of this. And perhaps you can add a few words to this, Ola? Branding is something we really believe in, and you have seen some of our products they had today, and this is the future. But Ola, let's hear it from the horse's mouth.

Yes, I think you're right. Of course, we see a stronger growth in our branded sales than we see in our average sales, if you like, of consumer products across all markets where we have launched the brand. We -- our growth rate is much faster for the brand and what it is in general in the category. So we foresee that to continue and that our efforts in terms of new product development, innovation, category management together with the retailers will fuel the growth of brand in the sales mix of consumer products. So that in itself will, of course, increase the price on the final products. As I said, we are more than 30% higher in terms of retail sales price on the brand and what we are on private label. So I think that's a big part of it. And as I said, our ambitions in that area is significant.

And when it comes to smart fish farming, it seems very interesting and that you can optimize sea lice treatments and these things. But how is the capacity to do as many sea lice treatments when you want to at any given time?

That's a good question. Oyvind, you are running the biggest farming region. Maybe you can start off.

No, the capacity we plan, of course, every year. And every fifth year, we have the long-term plan. We will look on rolling development in our production growth. And then we face the strategies and approaches and the vessel need or the treatment methods based on what we expect the development to be. And in that, we also take into account now, of course, the smart farming concept to get in earlier, to get the warnings earlier and to get in timely. It actually reduces the treatment frequency, it doesn't increase it. So that we will -- we follow and we just face the resources based on how also the smart farming will be rolled out.

But before we move on, maybe [indiscernible] can say few words about Scotland, Ireland and the Faroes kind of these days, it's not like we don't have a lice there. So tell them a little bit about those islands and country. Because often, I feel that they are missed out in this.

Yes. I think the things that we've worked on is site consolidation to have fewer larger farms in the right location. We've used fairly complex hydrographic life modeling disciplines to achieve where farm should be based to reduce the connectivity between them and increase in the well boat capacity and also well boat size because bigger well boats are more expensive, per meter cube of capacity, you can achieve quite a cost saving and efficiency gain with larger well boats. And then modern well boats to also handle the other species that we have in the pens, like cleaner fish, both lumpsucker and Wrasse.

And Fernando, you have something called the Caligus. Maybe you can say a few words about that and Chile.

Yes. Caligus is a slightly different species than the normal lice that you've seen in Europe. In Chile, also, we have a slightly -- we have a bigger, I would say, box tool for treatment. We have also the nonmedicinal alternatives that we use from time to time. And like, we call nonmedical tools, which is in the case of Chile, the most used alternative freshwater and well boat, which is fairly efficient for short period, 2 to 3 hours with low stress. And it will give you good clearance for at least a month, 1.5 months. In addition, we have also availability of mechanical treatments like SFI and some other alternatives that are coming, also more availability of well boat for freshwater coming into the industry, then the way we're trying to take that challenge.

And I think we all ready for next question, Kim.

Martin Kaland, ABG. It's on postsmolt.

Can you please repeat the question just for the audience online. If you can start from beginning.

Yes. Martin Kaland, ABG Sundal Collier. And it's on postsmolts. So are the assumed benefits and gains from the postsmolts, for example, the 50% reduction in mortality, is that based on performance of your own postsmolt groups so far? Or where does those numbers come from?

Oyvind, I guess, you are the one to answer this one.

These are clear indications that we see when we have been increasing our smolt sizes over several years. We also have had some groups spend with higher end or higher size range of smolt groups that have been into the sea. So that in combination with how we see the production cycle and also see the difference between the farms that we operate. We clearly see that by strategic stocking, by strategic approaches to areas and farms where we have more challenges during the autumn, we see that in our production planning, we strongly believe that this can be achievable by stocking bigger smolts. So it's based on both the experience we have seen smolts farms so far, but also the projections on how we see the cycles are running.

And one more, if I may, on new technologies. And if you were to rank the following technologies based on what you know now and what you would prefer to implement, that will be subsea farming, close containment, land-based offshore farming, how would that ranking look like? And yes, why?

That's a very good question. I don't know who I should allocate it to, perhaps myself. So you ended with offshore farming, that I would do as well. But it's tough to pick between postsmolt and smart farming. And luckily wise, we don't have to, right? So to us, those two components are -- they are pivotal in our plans going forward to reach to 100,000 tonnes target we have in terms of farming volume growth. So they are integrated in this plan. But the offshore forming, yes, I should not rule out offshore farming. But we haven't talked much about it this morning, and it's not by coincidence.

And one last one, if I may. It's on branding. And you commented that you would like to -- or target breakeven in 2024. But if we go back to the previous targets with EUR 1 billion in revenues and 10% EBIT margin, is those still valid? Or where are you in terms of those targets? And where can we be there?

Ola?

The target is still valid. We see the potential for the brand as big. I think the whole branding strategy is a long-term strategy for us. We are confident on our business model. We see that we can achieve the price premium and the margins necessary to get to the numbers that we talked about initially, And as such, those target stands for us. We are already the largest salmon brand globally, and we are at breakeven this year, which makes us very confident that the future is bright for our brand. But this is a long-term plan and a long-term strategy for us.

Okay. And then a question from the web, Alexander Sloane from Barclays. Maybe this question is for you, Ola. On U.S. demand. If you can comment on recent demand developments in the U.S. market and also into 2025 and beyond.

Yes. I guess it's not a secret to this audience that the demand in the U.S. has been weaker last year than what we have seen previously. We have had a stronger growth in demand in U.S. over many years compared to the rest of the world. And over the last year, that has softened somewhat. I think there are several reasons for that. We have seen a general cost decrease on commodities, resulting in lower prices for many proteins. And combined with the cost of living crisis, we have seen a tendency of somewhat of a down trading on proteins among U.S. consumers, which I think has affected salmon being a relatively high-priced protein in the U.S. market. I think fundamentally, nothing has changed. I think the potential for growth in the U.S. is still the same. I think what we have seen is a temporary bump in the road resulting from the cost of living crisis, combined with inflation previously and now a more heavy competition among proteins in the U.S. I think this is temporary. And actually, if you look to our own sales figures over the last few months, we have seen the start of what we hope is a recovery with stronger sales figures on value-added products, prepacked fresh salmon to key retailers. So I'm optimistic. I think that we will see a better market going into 2025 than what we have seen through 2024.

Alex Jones, Bank of America. The first question on smart farming, I think you talked about 26 sites that you have the cameras out today. What pace should we expect you to get towards full coverage across Norway?

Oyvind?

Yes, that is in progress and the process we are evaluating all the time. We are focusing on the part of the cycle and the farms and the area where we see the highest value creation and benefits of the solutions so far. And of course, we gained experience and we learned a lot along the way. And we'll gradually increase as we see the value creation. The value creation is the driver for this. That is what drives the pace of implementation and also where to go first.

And if I can just add a little bit to this. So smart farming is the future. So this is just a matter of time, which refers to your question. But we will get there, I promise, it's just a matter of time.

Great. One more, if I can, on the cost program. You have the EUR 300 million to EUR 400 million range. Are there areas of that cost program where you have greater uncertainty about the size of the benefit? Or is that EUR 100 million range really just a general contingency across all of your efforts?

Kristian, I think it's yours.

No, I would say that this EUR 300 million level in farming is based on calculations, of course, related to Mowi 4.0., postsmolt and then the rest of the generic cost program. We of course have worked a lot with postsmolt and Mowi 4.0 since the last Capital Markets Day. A lot of people have been involved. A lot of calculations, analysis. We have tracked developments as those years have now passed since 2021. I think we are pretty confident that these are good indications. We also -- as I said earlier, we like to have a little bit of a buffer. So I think we can stand for these numbers.

Okay. Then another question from Alexander Sloane, Barclays. It's a tricky one for you, Kristian. It's about underlying cost. The EUR 300 million savings achieved from 2018, have been offset by inflation elsewhere. With a potential improved feed costs and biological outlook from postsmolt, how much do you think of the indicated savings today of up to EUR 400 million can drop through the EBIT line in 2029?

Yes. And again, of course, I would say that this target we have communicated is everything else being equal. So we are not unfortunately 100% masters of international inflation on all the raw materials. So I think we have a strong record also there being active in the purchasing team and doing a good job. But of course, this is also then dependent on the development in raw material prices. But -- of course, very positive developments now this year with the strong first season for the Peru, anchovy with the quota, good yields. We know we have the second fishery season coming up. I think there are good indications that this could start now in either October or November, I guess, November is the usual start of that second season. And we have already seen that fish oil prices have come down, fishmeal prices as well, down approximately 25% we communicated back in Q2. And I believe they are further down around 9%, the fish meal price is now where we are standing now. So I think all the -- after a very unfortunate, of course, 2023, we are in a better place when it comes to the development in raw material prices now. And then, of course, this is difficult to say how this will be in the future. But we will do our part when it comes to working on our operations, our costs and then try to be as efficient as possible when it comes to raw material purchases in the feed department.

I'm Katie Richards from Berenberg. Would you say you have a technological advantage versus your Chilean competitors? And how big is your technological gap between your Norwegian operations and your Chilean operations? To what extent do you have the ability to transfer the profitability you're seeing in Norway to other regions?

I think the first part, I think goes without saying, Fernando, that one is yours.

In terms of technology, we are in a global industry. Basically, the suppliers of the technology are the same here and in Chile. It's Chile, the second largest market for any supplier. Technology arrive very quickly there. In terms of processing and see what technology is -- we're pretty much up to speed with Norway. There's no large difference. In the postsmolt, probably we're much behind because at this time, we haven't found the economical rationality to invest on that because the regulation does not really give you the full advantage of the postsmolt. Then we have gone that route. But in general, the technology go fairly quickly down there.

Can I just add a comment to that? Because you also asked about Norway in comparison. And I just would like to add to it that Mowi Chile has the same cost level as Mowi Norway. And the survival rate is actually higher. So that's why we have prioritized Mowi Norway in terms of postsmolt because if you can -- one thing is to increase the productivity. Very few at the same time, can also improve your biological metrics, then you get 2x the benefit. So back to Chile. So we don't prioritize Chile so far. But I know that there are other actors looking into this. And if you ask me, I think this will also take place in Chile. It's just a matter of time. But we are a big company. We have a big portfolio, and we cannot do everything at the same time. So we have to prioritize. We always try to pick the low-hanging fruits, so to speak.

Okay. And then a question from the web on HR people. There's a lot of talk today about smart farming, Mowi 4.0. If you can comment about the competence -- potential new competence areas for Mowi if we have the right people for these new functions.

Kjersti, do you have the right people?

I think we do. We do have -- there are analysis in all our regions of what competence we do have and what competence we need for the future. And we do also have plans set in place to both rescale and upskill our employees in the areas that we see that we need more in technology and more in AI.

Okay. And then a question on feed, maybe for you, Atle. Do you foresee a total exclusion of fishmeal and fish oil from the salmon diet by 2030 in favor of algae-based omega-3 and insect meal?

I think the short answer to that is no. To go to -- from the levels of fishmeal, fish oils that we have in the diets today is extremely difficult in that short time period. Five years is a short period, especially replace fish oil with its EPA DHA content. Algae oil, we use it today. But volume-wise, I think there is still a way to go before we have sufficient volume from new raw materials like insect meal and algae. So I think we need to move maybe over to other areas like gene-modified rapeseed oil and stuff like that in order to take further steps in that direction. And there, we are not now.

Mikheil Omanadze from BNP Paribas Exane. You clearly see scope for Mowi to continue outgrowing the global salmon industry in terms of harvest volumes for the next 5 years. Looking at what has been discussed today, including your focus on postsmolt and smart farming, what do you think will be the major differentiating factor versus competition that will allow you to outgrow the industry?

Good question. And I would say both because we have unutilized license capacity because we are the only global farmer. We have some opportunities, our peers or competitors, if I shall call them that, don't have. In addition, we are all in on postsmolt. That's not what we see with regard to the other. There is more of a mixed bag. Again, I would say both to answer your question.

Showing no further questions from the web.

Okay. Then it only remains for me to thank everyone for your attention. Take care, and have a great day ahead. Thank you.