Welcome to Lerøy Seafood Group's first quarter presentation 2026. My name is Henning Beltestad, I'm CEO in Lerøy Seafood Group, and with me today I have Sjur Malm, CFO.

I will take you through the highlights and also give you a short strategy and targets update, and then Sjur Malm will take you through the key financial highlights. Then I will come back and take you through some outlook for going forward.

Lerøy Seafood Group is a leading global provider of high-quality seafood with a long history reaching back all to 1899. We are 6,000 employees, NOK 34 billion in turnover, and had last year a operational EBIT of 2.5 billion.

We catched close to 60,000 ton of whitefish, 195,000 ton production of salmon and trout, and and had a VAP processing volume of 340,000 ton. We are a global company.

Our goal is to create the world's most efficient and sustainable value chain for seafood, and we are continuing improving our value chain and getting into new markets around the world. Lerøy is a unique company, integrated both in in redfish and in whitefish, and and we have invested heavily the last 20 to 25 years.

Our values are open, honest, responsible, and creative. Then highlights of the quarter: it's been a quarter with a strong biological development in in in farming.

First quarter, we harvested close to 40,000 ton compared to 38,000 ton last year. We have increased expectation for profitability in wild catch after a good quarter.

There has been some pressure on gross margins in some units in VAP sales and distribution, and we and we keep our harvest guidance of 195,000 ton in Nor- Norway. The board propose NOK 2.5 per share as dividend for 2025.

We achieved operational EBIT of 858 million NOK compared to 1 billion and 50 million NOK in in first quarter 2025. A fairly good quarter for us so far.

Then we on our Capital Markets Day, we we presented our updated strategy. We are at a good place at the moment.

We have a proven execution model of Lerøy Way and how we work in with the continuous improvements in in the whole value chain, we are at a good place there after 8 years of hard work. We updated the the strategy framework with strategic priority on growth, cost, simplify, and leadership.

We also sharp- sharpened the financial framework with a with a focus on return on investment, CapEx discipline, strategic alignment, and portfolio thinking. This is the base for our direction going forward, and it's and this is communicated well out to the whole company.

On Capital Markets Day, we presented new targets for 2030 and also 2026. We will quarter by quarter give you update on where we are.

Of course, it's a little bit early after one quarter, but we keep our route to 220,000 ton in in in Norway. We are at 196,000 ton today and 197,000 ton rolling.

NOK 1 billion cost base reduction through initiatives in 2026, we realized 173. We are on the track to NOK 50 billion in turnover, and we also have a good speed in in in VAP sales and distribution.

If we look at the cost reduction progress, we had a good start. We realized 173 million through so far through first quarter.

We identified and have execution on on 586 million, and we have a gap to target of 241. We have a motivated organization that's step by step now and are implementing, this this cost culture in the whole value chain.

We we believe that it's achievable to to reach the goal of 1 billion target. Then I will go through the different segments.

We start with the farming, then wild catch, and then we take VAP sales and distribution. Farming highlights for the quarter: it's we have continued strong biology, strong growth rates, low mortality, high harvest weight, 4.8 compared to 4.2 the same quarter last year, and year-on-year improvement in quality, but some maturation on trout which give have given a little bit downgrades in in Lerøy Sjøtroll.

The prices in the quarter is NOK 4 lower than the same quarter last year with reference to SSI price, and and, yeah, and as expected, quarter-on-quarter cost increase and lower share of volume from Lerøy Aurora. Harvest guidance is re- reiterated at 195,000 ton.

Then we go into the different regions, and we start in north with Lerøy Aurora: continued strong biological development in first quarter, strong growth rates, high survival rates, high superior share, and a higher high harvest weights. We see the harvest weights has been going from 4 kg to 5.3 kg this quarter compared to first quarter last year.

Cost in Q1 lower than Q1 '25 and lower than fourth quarter if adjusting for utilization effects of infrastructure. The expect- we expect marginal cost increase in second quarter.

Estimated harvest volume is 49,000 ton. The operational EBIT in the quarter is NOK 24 per kilo compared to NOK 29 per kilo last year.

Lerøy Midt also strong biological development in the quarter, strong growth rates, high survival rates, high superior share, and high harvest weights. Here we have been going from 4.4 kg to 4.9 kg.

The cost in first quarter is marginally higher than first quarter '25 and in line with fourth quarter '25, and we expect marginal quarter-on-quarter cost reduction in second quarter. The estimated harvest volume for the for the for the year is 73,000 ton to, yeah, compared to 71,000 ton '25.

We also need to take operational EBIT, which is a strong performance in in this quarter, close to NOK 23 per kilo compared to NOK 32 last year. Lerøy Sjøtroll: also here, strong biological development through the quarter, strong growth rates, high survival rates, and higher harvest weights.

For the harvest weights, we go from 4.1 kg to 4.4 kg. Expect marginal cost reduction for second quarter, potential significant cost reduction for second half '26 if the biological trends continue like we see today.

Price achievement in trout is influenced by by maturation in this quarter. Estimated harvest volume of 73,000 ton.

Then Scottish Seafarms: weak quarter on low volumes and high cost stock. There's been a challenging 20- year of 2025.

The volumes are down 36% to 5,400 ton. Low volume impact unit cost, particularly on wellboat and processing, and harvested fish impacted by challenging situation in in, as I said, in 2025.

The next generation of fish is performing well. We estimate volume of the year to be at 43,000 ton compared to 33,000 ton last year.

A strong improvement in in volume in 2026. Yeah.

Then to update the farming volumes, we estimate 195,000 ton 2026, about the same level as 2025, and total with our 50% share of Scottish Seafarms of 217,000 ton. Then if we go to sales and processing operation, we have we we have a sales and processing operation in 18 countries and sales to more than market more than 80 markets.

To have a good spread in markets is is is good to have when you have a situation like today day with a lot of unpredictability in in, globally at the moment, but we see that to have a last number, a big spread on on available market is is a good thing to have, both with operations, but also with branch offices in in in overseas markets. For this quarter, it's continued growth in volumes and in revenue, but then the operational EBIT is reduced from NOK 212 million in first quarter '25 to NOK 160 million in in '26.

Many units are increasing profitability, but negative impact on gross margin in gross margins in some units, and also affected by increased logistics cost to some high-margin markets. We believe we have a strong position.

We have handled the the situation in first quarter in in a good way, and everyone in this segment are really working hard, and to to to stabilize, the the the end of the value chain even though it's fluctuating exchange rates and and and changes in cost of especially transport to the overseas markets. Wild catch: very good quarter, strong performance in light of the quota situation.

The catch volumes are down, prices significantly up, and we also see clear operational and financial improvements in land-based industry, and but we also are affects- affected by increased fuel cost toward end of the the quarter and, of course, especially for the the the fishery side for the trawlers. A challenging operation conditions, but operational EBIT increased from NOK 148 million to NOK 228 million.

Very good and strong performance in in this quarter, and we we increased profit expectations for the year as as a whole. Yeah.

If we look at the catch volumes in the quarter, we we catched 14,000 ton compared to 19,000 ton same quarter last year, and the remaining quota for '26 is 20,000 ton compared to 21,000 ton in 2025. Then Sjur Malm will take you through the key financial highlights.

Yes, thank you, Henning. I'll sum up into our P&L and balance sheet the comments already given by Henning.

If you look on our P&L, key drivers are shown on the lateral lines. We see that the profitability per kilo in salmon and trout, which here includes the profitability downstream, is lower per kilo than last year.

The key driver for this is lower price realization. We also have a slightly higher cost position and a lower margin per kilo downstream.

I will return with more details on the latter. We harvested also a slightly higher volume.

In wild catch, as commented, we have low quota, low volume, but price development has been very strong, which has given a high margin increase. In sum, this makes our operational EBIT at 858 million compared to 1 billion and 50 million last year, where lower price is the key driver.

We also see that the decline in EBITDA presented by which is a bit smaller. We are doing investments particularly in farming.

I'll comment on those later, which we yet have to to realize the full potential of. On our balance sheet, there are no big changes.

We see that total asset is is around the same level as last year. The investments, particularly in farming, is increasing tangible fixed asset.

Our biomass is a little bit lower in volume and in value. Other inventory is a bit lower than than same period last year, but within the quarter, we've built some working capital related to whitefish inventory.

In general, we are an investment-grade rated company. We have a strong balance sheet and equity ratio of 50%.

Looking into changes in interest-bearing debt, I think the key point to comment on this slide is the change in working capital, and that is majority driven by inventories in the whitefish, which is seasonal. CapEx, I will return to comment, and in general, we've reduced our debt from 8 billion to 7.7 billion in this quarter.

This shows our historical CapEx and best estimate for 2026. There are no changes from on this slide from previous quarter.

As said then, we had guided for 2 billion in CapEx in 2025. There are some periodization effects moving some of that into 2026, which makes the best estimate as of today at around 1.7 billion.

On top of the maintenance level at around 1 billion in in Lerøy, we are investing in new technology. The biggest investment this year is the closed containment system, Aquatraz, where we are building three units and the first will be operational in 2027.

We are also making some investment in wild catch related to new and more efficient engines as well as well as capacity for cooking more prawns, which has a higher price realization. We are also making some investment in expansion to follow the growth that we see downstream.

This slide is is also then targeted a bit for Norway, whether at times are a discussion on the ripple effects from our industry. We just want to highlight that Lerøy and this industry has very strong ripple effects in Norway.

The dots highlight where we operate and where we have suppliers. We have employees in 50 municipalities or we operate in 50 municipalities and have employees in 190 municipalities.

We bought goods and services for 20 billion in Norway last year. Tax impact from our company and our employees was around 2 billion in 2025.

This is a very important industry for Norway. Then at the Capital Markets Day, we gave some more insight into the drivers of profitability in our downstream segment.

For those who would like more details on that, please look into the the that presentation. We divided into three segments: primary processing, which is basically fillets and and slaughtering; sales and distribution, which is sales, distribution, logistics globally; and the consumer products, which is a lot outside Norway, but we also have some units in Norway, which are processing raw materials then into finished products.

This shows the overall profitability drivers for the segment, and Henning has already commented upon then on them. We see down to the left that the 12 months rolling revenue is on a continued positive trend.

That is good. We also see that the profitability trend is a little bit lower this quarter, which is a reflection of then a lower operational EBIT this quarter compared to same quarter last year.

I'll give some insight into that. Looking down at those three parts of this operation, starting with sales and distribution, we see that sold volumes shown up to the right is showing a healthy development, around 8% growth in volumes.

Revenue is up 7%, the lower profitability is not a reflection of poor demand or poor volumes. If you look then into the drivers of the profitability shown down to the right, we also see that OpEx per kilo is reduced, but that the key driver is lower gross lower gross margin per kilo.

That lower gross margin per kilo is basically driven by by two things. One is the the logistic cost into some of the higher margin markets, and the other part is related to the fact and this is not only Lerøy's volume, but we are a buyer of production grade volume in Norway.

The availability of those volume has been significantly reduced in in first quarter, which is a reflection of the the very strong biological development in also for Norwegian farming. Looking then into consumer products, also here, it's a healthy and positive volume and revenue growth.

We also see a slightly lower profitability this year that is mostly related to one unit and related to access to whitefish, which has been lower due to low low catch volumes and having some impact on gross margins there, while other units are performing very very well. We see also here OpEx per kilo is reduced, gross profit per kilo is also reduced, and in sum, the the EBIT is marginally down from last year.

Within the primary processing side, we see that EBIT is at level with last year on a slightly higher volume. No big changes there.

During Q2, we will integrate also this activity from Lerøy Midt and Lerøy Aurora, and that segment will then be that part of this segment will then be be larger. Then also on Capital Markets Day, we give some insights into the driver of our wild catch segment.

On the wild catch segment, it is challenging to to estimate profitability from quarter to quarter, basically because timing of of the fishery and sales of fishery is challenging. If you look at the year, it's much much easier.

What we highlighted there, and again, I refer to the Capital Markets Day presentation for for more details, was a simple model on how to estimate profitability for the year. That profitability is basically a reflection of catch values, the cost of the trawling operation, the result in the land-based industry, and depreciation and amortization.

At the Capital Markets Day, this model indicated a a EBIT level of 250 to 300 million in 2026. There has been some changes, and we just highlight these changes.

Our new estimate for the year is not 250 to 300, but is increased to by 100 million to 350 to 400 million. The drivers for that is to increase catch values.

Here, we've given some estimate on catch volume in 2026, and we highlighted what prices were in Q1 2026. If you look, for example, on shrimp, to make one comment on that, the price level for the year will be lower because this is a quarter where we sold only consumer-graded shrimp, and for the year, we will also sell industrial grade shrimp, which has a lower price point.

Still, it highlights that price level is vastly higher in start of '26 than what we saw last year and that catch values are then significantly increased. An estimate and indication then for the year is that catch values will be significantly up despite the lower quota.

On the negative side, we know fuel prices have increased a lot. Havfisk is using MGO as fuel, and towards late quarter, we saw a significant increase in in fuel price with what we've seen so far.

Forward prices for '26, we get to a best estimate as of today that fuel cost should be around NOK 10.50 per liter and that consumption should be around 38 million liter. That means that the fuel cost will be around 130 million higher in '26 than in '25.

Summing up these two factors into that model shown on on the previous slide, the best indication today is that the EBIT in this segment would be in the range of 350 to 400 million in 2026. Then I give the word back to you, Henning, for outlook.

Thank you very much, Sjur. Then I will summarize a little bit and to see a little bit forward going forward.

We start with the supply of Atlantic salmon globally. We have had a 2025 with strong growth in volumes of 12% in globally.

We see Norway was up 12%, Faroe Islands up 30%, Chile up 15%, and then we had a reduction in UK. A very strong growth in '25, and we passed 3 million tons of volume for the first time.

For '26, we estimate or Kontali estimate 2.4% increase, and for 2027, a small increase of 1%. We believe that going forward for the farming side, we believe that with the development that we are doing in the markets, we believe that we can develop even more.

We have a good momentum in the overseas markets and especially in China. For the demand of farmed salmon, I see as that will increase going forward.

The most important thing is, of course, the strong biological performance that we see is continuous. We're very happy for that.

We also have a good speed now with the cost reduction program, gradually impact cost of harvested fish with lower cost from second half of '26 and then into 2027. We keep our harvest volume at 100 estimate of harvest volume of 195,000 ton.

Even though there might be a little bit upside in these numbers if the biological situation continues in the strengthening like it's been so far, and the total volume is close to 270,000 ton, including our 50% share in Scottish Seafarms, which also are showing great improvement in biology so far in this quarter and also into this quarter that we're in today. The wild catch: a very strong quarter, and we believe with the quota situation that the prices will stay high.

We see strong operational development in the industry segment with nine factories, and believe that, yeah, there is still a huge potential of improvements going forward. VAP sales and distribution, we have a good structure, we have a good setup in European markets with distribution and processing centers and in the overseas markets with branch offices.

The increased demand for integrated, sustainable value chain is strong, and we see a strong demand in emerging markets, and some tailwind on lower than expected prices in '25. For 2026, expectation of continued growth and slightly lower margins, but we have a good speed in that segment also.

This is just summarizing long- and medium-turn ambitions. We believe, as I said, the farming, it's for the short term, we are on good track, for the long term also.

It is long term, 2030, but we really believe that with the hard work that we do in the value chain, will drive us to reach the 220,000-ton goal. The wild catch, it depends, of course, of the quota, but the indicative operational EBIT for '26, as Sjur said, is adjusted to 350 to 400 million, a good performance in this segment, and we will keep up a good speed.

VAP sales and distribution, a little bit down in '26, but we keep our goal and believe that this is possible to achieve. With the investments that we have done, with the potential to improve all our units in Europe for distribution centers, we believe that also the long-term goal is really achievable.

That was all, and thank you very much for spending time together with us.