2023

Annual

Report

Passion

for Salmon

Contents

This is SalMar

Message From the CEO 8

The History of SalMar 12

The ABC of Salmon Farming 14

SalMar’s Operating Segments 15

SalMar’s Cultural Tenets 19

Passion for Salmon 20

Sustainability

and Corporate

Responsibility

Fish 35

Environment & Technology 50

People & Society 64

GRI Index and Third-Party Verification 72

Corporate

Governance

Corporate Governance at SalMar ASA 74

Executive Management 82

Board of Directors 84

Shareholder Information 86

Report of the Board of Directors 88

Financial Statement

and Results

Consolidated Financial Statements 105

Notes to the Financial

Statements for 2023 113

Annual Financial

Statements of SalMarASA 186

Notes to the Financial Statements for

2023, SalMarASA 193

Statement by the Board of

Directors and CEO 212

Independent Auditor’s Report 213

Annual report 2023

Contents

Key Financial Figures Harvest volume

by segment

Our Locations

SalMar Northern Norway

SalMar Japan

SalMar Thailand

SalMar South Korea

SalMar Taiwan

Yu Fish Singapore

Icelandic Salmon

SalMar Vietnam

SalMar Central Norway

Scottish Sea Farms LTD.

2023

2022

Icelandic Salmon

2023

2022

Scottish Sea Farms Ltd.

2023

SalMar Northern Norway

SalMar Aker Ocean

2022

2023

141.4

92.8

17.9

16.1

12.4

18.0

SalMar Central Norway

Joint venture, 50% share

1,000 tonnes gutted weight

114.1

2022

63.4

2.3

20.0

18.6

16.1

23.1

31.8

153.

161.5

182.

193.

254.

Key Financial Figures

Figures in NOK million 2023 2022

Revenue and other income 28,219 20,158

Operational EBIT 8,088 4,465

Adjusted earnings per share 33.50 25.27

Dividend per share 35.00 20.00

Total Assets 53,331 62,501

Equity Ratio 43.3 % 38.6 %

NIBD incl. lease liabilities 14,952 20,505

NIBD incl. Lease liabilities /EBITDA 1.6 3.7

Operational EBIT per kg - Group

NOK per kg

Consolidated Harvest Volume - Group

1,000 tonnes gutted weight

2019

2020

2021

2022

2023

Key Figures - Group

Financial Statement

Contents

Fish

Good fish welfare is the foundation

of SalMar’s business. We work

systematically to create an

environment in which the salmon

thrives and remains healthy.

Environment and

Technology

SalMar believes in preserving the seas

for future generations. We minimise our

footprint with measures and routines

throughout the entire value chain.

People and

Society

SalMar acts as a responsible

corporate citizen. We believe

in creating local value and safe

workplaces and support the local

communities where we operate.

Fish

People

Environment

5.6 %

5.7 %

6.1 %

Survival rate

94%

Reduction in Scope 1+2

intensity since 2020

-16%

1.12

Biological Feed Conversion Ratio

-25%

Reduction in Scope 3

intensity since 2020

Sickness absence rate

Women

26%

Men

74%

Employees

2,506 FTEs

Key ESG Metrics for Norway

This is SalMar

Message From the CEO 8

The History of SalMar 12

The ABC of Salmon Farming 14

SalMar’s Operating Segments 15

SalMar’s Cultural Tenets 19

Passion for Salmon 20

This is

SalMar

This is SalMar

Message From the CEO

A deep-rooted coastal

culture has passed the test

In 2023, SalMar’s corporate culture was put to the test. Our task was

to merge four strong aquaculture companies, from various places along

the Norwegian coast, into one; from now on, they would coordinate

their activities at all levels in both Central and Northern Norway. Most

importantly, we aimed to forge a common culture by combining the

best that each of the four companies had to offer. As SalMar’s CEO,

I can proudly say that we passed the test with flying colours. The

credit goes primarily to our 2,500 employees, including all those

who have recently become part of the SalMar family. They have all

worked tirelessly, with good spirits and great expertise, to put the

many pieces of a complex and demanding process seamlessly in place.

Over the past year, we have built a strong and solid community, from

which the company will reap great benefits in the near and long term.

I believe this is a result that is deeply rooted in the coastal culture

from which we spring.

When I was appointed as SalMar’s new CEO in the autumn of 2022,

after several years as head of sales and processing, the company was

in the middle of a merger process with Norway Royal Salmon (NRS)

following the acquisition of NTS, which also meant that SalmoNor

and the former Midt-Norsk Havbruk became part of our family. In

this case, it is clear to see that one plus one has become a great deal

more than two. Even more important than cost synergies are the

additional value creation and increased competitiveness that have

already been manifested, and that we believe will strengthen in the

years to come. This is due not least to our shared culture. We are one

SalMar – one team.

President & CEO Frode Arntsen

This is SalMar

But we cannot rest content with previous successes. The aquaculture

industry must address the challenges facing it, and pursue improve-

ments in all areas – especially with respect to the environment and

fish welfare. At the same time, we can be proud that Norwegian

aquaculture scores highly in terms of sustainability compared to other

food producers worldwide. SalMar is also proud that we were named

one of the world’s most sustainable protein producers by FAIRR in

2023. Nevertheless, we must acknowledge that some things are

also moving in the wrong direction. Fish mortality is increasing. Fish

welfare is more challenging. It is our responsibility to change that. We

must realise that there are simply too many gaps in our knowledge.

We need to know more about the salmon which is the most important

part of our value chain.

A living laboratory

The Salmon Living Lab will become a laboratory for innovation, research

and development. Our ambition is for this knowledge centre to become

a valuable contribution to sustainable growth in the aquaculture

industry. It is with great pleasure that SalMar launches this initiative

in partnership with Cargill, one of the world’s leading food producers

and a global spearhead in the research, development and production of

nutritious fish feed and feed ingredients. SalMar makes its operational

facilities available so that research can take place where the challenges

are and must be solved in the coastal waters where the salmon live

and grow. On the salmon’s terms. Both SalMar and Cargill will invest

significant resources to establish and develop the innovation centre.

It will not be a “SalMar centre” but a collaboration where aquaculture

companies, equipment manufacturers and research institutions are

welcome to conduct research and innovation covering the entire

biological value chain in aquaculture.

The centre will not replace but complement the innovation and devel-

opment SalMar carries out daily to ensure sustainable value creation

in all parts of the value chain. Fish health and fish welfare are of the

highest priority for SalMar every single day, as we strive to fulfil our

ambition of being the world’s best aquaculture company. SalMar also

had significantly lower salmon mortality in 2023 than the industry

average. But still, we must adhere to SalMar’s important rule that

everything we do today must be done better than yesterday. This is

necessary to fulfil our social mission as an essential contributor to

the global food supply. SalMar served two billion health-promoting

salmon meals in 2023 to consumers in over 50 countries worldwide,

a number that will only continue to increase in the coming years.

Results

As usual, our financial results can be studied in detail in various places

in this report, but some figures also belong in the CEO’s reflections.

Gross operating revenues in 2023 were NOK 28.2 billion, compared

with NOK 21.1 billion the previous year. Operational EBIT was NOK

8 billion, compared with 4.5 billion in 2022. These results represent

good underlying operations and the ability to achieve the produc-

tivity improvements we expected from the acquisition of NTS and

the merger with NRS. The results also reflect strong markets with

good price achievement and a consistently weak Norwegian krone

through the year. To illustrate the cost effects of the merger with

NTS, NRS and SalmoNor, 97 per cent of the planned cost synergies

have already been realised. NOK 821 million of the estimated NOK

844 million in reduced annual recurring operating costs. This, too, is

the result of everyone pulling together, creating a fantastic result

through team efforts.

The Group achieved a new record in harvested volume in 2023, partly

due to the merger with NRS/SalmoNor, more efficient utilisation of

Norwegian licences, and the addition of new licences. The Group

as a whole harvested 266,500 tonnes in 2023, up from 211,600

tonnes the previous year. A total of 233,900 tonnes was harvested

in Norway, compared with 177,500 tonnes in 2022, while in Iceland,

17,900 tonnes were harvested, compared with 16,100 tonnes the

year before. Significant production challenges in Scotland reduced

production volume from 18,000 tonnes to 12,400 tonnes (based on

SalMar’s 50 per cent shareholding in Scottish Sea Farms).

Storm and calm

The Norwegian coast can be both stormy and calm. Safety and pre-

dictability are not characteristic of life at the outermost edge of the

ocean. From the first day, challenges abounded for our ancestors,

who ventured out along a rugged coastline to secure a livelihood

based on the sea’s resources. Our generation can enjoy a significantly

better and safer life thanks to those who lived and worked tirelessly

before us. But stormy and calm still characterise life on the coast,

something the aquaculture industry must always live with. Production

of living animals in the sea presents biological challenges that can

arise suddenly and hit hard. For example, a wave of jellyfish – called

string jellyfish – spread along the Norwegian coast towards the end

of 2023 and infiltrated several of SalMar’s locations in both Central

and Northern Norway. Jellyfish are one of several risk factors in fish

farming, but they rarely cause significant damage to the fish, as was

the case in this instance. Fortunately, SalMar has contingency plans

that account for such events, and the company has, in close collab-

oration with the Norwegian Food Safety Authority, taken measures

based on fish health assessments. The consequences of the jellyfish

attack are a significant outtake of fish, reducing SalMar’s estimated

volume harvested in Norway in 2024 by 20,000 tonnes, to a total

of 237,000 tonnes.

Culture and operations – hand in hand

While SalMar declared 2023 to be the Year of Culture, we have des-

ignated 2024 as the Year of Operations. The latter is not meant

replace the former but rather reinforce it. Our common SalMar culture

should enhance and improve everything we do every single day. As

we advance, we will continue to build on the shared cultural platform

established during the significant organisational changes in 2023. It

This is SalMar

is said that the devil is in the details, and in these details, SalMar has

shown its strength over the years. This has made us superior in terms

of operations, and out in front is where we want to stay in the future.

An important aspect of our operations will be to make even better

use of the substantial investments SalMar has made both at sea and

on land. These have made SalMar well-equipped for the future. The

company has invested several billion kroner in advanced processing

facilities on the coast: Vikenco at Aukra in Møre og Romsdal, InnovaMar

at Frøya in Trøndelag and InnovaNor at Senja in Troms. Furthermore,

we are coming to the end of an extensive programme to construct

large new and highly advanced facilities for smolt production. In 2023,

SalMar commissioned its new smolt facility at Senja. In 2024, it will

commission the new facility at Tjuin in Steinkjer. The investment costs

for building the two facilities alone amount to over NOK 3 billion. This

will provide good access to smolt for SalMar’s operations and, at the

same time, a basis for even better quality and more innovation in this

part of the value chain.

SalMar is an integral part of the communities in which we operate.

What is good for our many coastal communities is also good for SalMar.

Each year, SalMar supports a large number of sports, cultural events,

associations and teams in municipalities and local communities. We

believe this is also part of our social mission. For SalMar, it is important

to encourage young girls and boys to choose to live on the coast and

see all the fantastic opportunities the coast represents. Naturally, our

main contribution is to create profitable, sustainable and attractive

jobs. But we want to make sure that it is also appealing to live in

the coastal districts outside of working hours, so that people enjoy

themselves and have exciting things to do also in their spare time.

Aquaculture in open oceans

SalMar’s investment in offshore aquaculture is now being developed

in partnership with Aker in SalMar Aker Ocean. This subsidiary has

two offshore installations in operation. Ocean Farm 1, the world’s first

offshore unit for salmon production, is now in its third production cycle

off the coast of Trøndelag, after extensive upgrading. In addition,

SalMar Aker Ocean took over Arctic Offshore Farming outside Tromsø

in 2023. The company and the project originally belonged to NRS

but were sold on to SalMar Aker Ocean after the merger with SalMar.

On 25 September 2023, the Directorate of Fisheries granted SalMar

Aker Ocean a location permit to establish a Smart Fish Farm 45 nautical

miles west of Frøya. The permit is based on commitments for eight

development licences for offshore aquaculture, which the Directorate

of Fisheries announced in February 2019. However, there is still con-

siderable uncertainty about the framework conditions for aquaculture

in the open ocean, both with respect to areas suitable for farming,

permits and the future tax regime.

The new resource rent tax will not currently apply to offshore aqua-

culture. Still, the industry and investors must take into consideration

that it could happen if this category of aquaculture also becomes

profitable. This means that the industry must take unlimited risk in the

build-up phase, while the State will be able to introduce additional tax

later if this becomes profitable. SalMar Aker Ocean has decided that

further investment in offshore aquaculture will be put on hold until

the Norwegian authorities have clarified the framework conditions.

Unpredictable framework conditions

On the 31 May 2023, the Storting decided, despite strong warnings

from the industry, to introduce a resource rent tax on aquaculture in

Norway at the rate of 25 per cent, with effect for the full 2023 fiscal

year. The new tax comes on top of ordinary company tax, so the total

marginal tax rate is 47 per cent. The uncertainty surrounding the new

tax is reinforced by the fact that a new government price council

will determine nominal prices on which the resource rent tax will be

calculated. The pricing details have not yet been clarified, so there is

still considerable uncertainty about the final tax bill. SalMar and the

industry have collectively warned against the new price council and

recommended that actual prices be used as the basis for the tax levy,

as is the general rule in Norwegian tax law.

Uncertain political framework conditions have meant that SalMar has

put on hold a planned investment of approximately NOK 2 billion for

a major expansion of the InnovaMar processing plant in Frøya. This

decision has been taken because a significant part of the income

from aquaculture that was to be channelled into this project will

now be subject to resource rent tax, combined with the uncertainty

surrounding the framework conditions for offshore aquaculture.

In the latter part of 2023, the industry’s organisations put considerable

effort into their consultation responses to the government-appointed

aquaculture committee, which presented its report on 28 September

2023, see NOU 2023:23, Comprehensive management of aquacul-

ture for sustainable value creation. SalMar also submitted its own

in-depth consultation statement. The report contains a broad review

and assessment of the entire permit system in Norwegian aquacul-

ture. The committee proposes several changes that the aquaculture

industry and large parts of the business community and civil society

on the Norwegian coast have warned against. This includes abolishing

the so-called time-limited demonstration licences.

The Ministry of Trade, Industry and Fisheries has announced that

the government will prepare a report to the Storting (white paper)

during the first half of 2025, based on the committee’s report and

the consultation responses. The white paper will cover a wide range

of issues affecting the basis for aquaculture permits in Norway. Given

the fundamental importance this has for the country’s second-larg-

est export industry, we hope the government will engage in a close

dialogue with all the parties concerned in its preparation of its report

to the Storting. The hasty introduction of the resource rent tax is not

an experience anyone wants repeated.

This is SalMar

A mass movement

SalMar will continue to invest and give our all to develop the company

and the industry within the framework conditions the authorities give us.

In 2024, SalMar will invest NOK 1.9 billion in maintenance and capacity

increases, and NOK 1.6 of this will be in Norway. SalMar will continue to

work systematically to achieve our goals and ambitions. This will be done

in close cooperation with our customers and partners, not forgetting our

owners. We are immensely grateful to our owners, of which the Norwegian

State through the Folketrygdfondet pension fund is the second largest.

Our largest shareholder is the investment company Kverva, which channels

almost its entire share of the dividend from SalMar into investments in

various industries or to enable its owners to pay the tax on Norwegian

ownership. SalMar has approximately 23,000 shareholders spread across

the world. In addition, several hundred thousand Norwegian women and

men indirectly own SalMar as shareholders in different investment and

pension funds. We appreciate that our shareholders have such great

faith in SalMar that they have chosen to invest their savings in becoming

owners of our company. We hope that we can be worthy of this trust. Our

owners are so many that we can almost use the term mass movement. In

this respect, uncertainty in tax regimes not only affects the companies

in the aquaculture sector – but also hundreds of thousands of owners

across different countries.

Outlook

The geopolitical challenges, with wars both inside and outside Europe,

continue to leave their brutal mark on everyday life around the world.

The solutions to these challenges will lie with the governments of the

states concerned and the international community. Let us hope that the

peace ambitions that laid the foundations for the UN eventually gain

the upper hand. The Norwegian aquaculture industry also has a role as

a bridge-builder between people and nations. This takes place through

constructive cooperation with companies and customers worldwide

and the industry’s contribution to a sustainable global food supply. The

attached sustainability report describes in more detail SalMar’s significant

efforts in this area in 2023.

Eternal perspective

Salmon will be a key factor in feeding the world’s growing population. It is

not easy to imagine a more stimulating role than leading a business that

supplies healthy and tasty seafood to the whole world. The aquaculture

industry has some environmental challenges that must be resolved, as

do other food producers. But we at SalMar believe in our social mission

to produce renewable and sustainable food that the world needs, for as

long as there are people on Earth. Therefore, we also have an eternal

perspective on what we do.

I am confident that SalMar, with its employees, culture and expertise,

has all the prerequisites to be at the forefront also in the future. We will

do everything today better than yesterday and do our utmost to satisfy

all parts in the value chain up to the end consumer in the market. Our

mission is to produce and bring healthy salmon to all corners of the globe.

No one can replace the human competence, the urge to create and the

enormous will to drive the world forward. The sum of many talented

individuals has created SalMar. Our employees in all parts of the business

have brought us to where we are today. At SalMar, we are passionate

about continuous development on the salmon and nature’s terms; this

is our passion – a passion for salmon.

This is SalMar The History of SalMar

1991

SalMar is founded in Frøya

in Sør-Trøndelag following

the acquisition of one

licence for the production

of salmon and a harvesting/

processing plant. The

company’s primary business

was the processing of frozen

salmon. This was the start

of a major restructuring of

the Norwegian aquaculture

sector, which gradually led to

a substantial increase in its

level of industrialisation.

1992

Acquisition of two licences

for the production of farmed

salmon in Central Norway.

1995

Start of smolt production.

Acquisition of Follasmolt

AS in Verran, Nord-

Trøndelag and lease

of Kjørsvik Settefisk’s

hatchery in Aure,

Møre & Romsdal.

2009

Acquisition of the

remaining 66%

of the shares in

Volstad Seafood AS.

2010

Acquisition of 75.54% of

Rauma Gruppen AS and

100% of Stettefisk AS.

Broodfish in Central Norway

(Møre & Romsdal).

Acquisition of 23.3% of the

shares in the listed Faeroese

company Bakkafrost P/f.

2011

Completion of the world’s most innovative and efficient salmon harvesting and

processing plant – InnovaMar. Acquisition of 7 licences in Central Norway through

Bringsvor Laks A, Krifo Havbruk AS and Villa Miljølaks. Increase of shareholding

in P/F Bakkafrost to 24.8%. Leif Inge Nordhammer steps Down as CEO and is

replaced by Yngve Myhre on 6 June.

2012

Acquisition of 10 licences in

Northern Norway (Finnmark)

from Villa Artic AS.

Increase of shareholding in P/F

Bakkafrost to 25.2%.

2006 (44,000 tonnes

gutted weight)

Kverva Holding AS sells 42.5%

of the company’s shares to a

limited number of Norwegian

and international investors.

Acquisition of three new

licences in Nordmøre.

Acquisition of the remaining

51% of the shares in

Senja Sjøfarm AS.

2007

SalMar shares listed on

the Oslo Stock Exchange

on 8 May 2007.

Acquisition of 4 licences in

Møre & Romdsdal through

Halsa Fiskeoppdrett AS and

Henden Fiskeoppdrett AS.

Acquisition of Arctic

Salmon AS (four licences) in

Nordreisa, Troms.

2008

Acquisition of one licence

in Central Norway (Møre &

Romsdal) and one in Northern

Norway (Troms).

Acquisition of 34% of the

shares in Volstad Seafood AS.

2005 (35,000 tonnes

gutted weight)

Focus on the core. Divestment

of operations SalMar does

not consider to be core

businesses, including the

production of herring, herring

oil and fish meal.

2001 (15,000 tonnes gutted weight)

Establishment of operations in UK

through establishment a 50/50 joint

venture with Lerøy Seafood Group

which became sole owner of Scottish

Sea Farms Ltd, the UK’s second largest

salmon producer.

2000 (11,000 tonnes gutted weight)

Establishment of operations outside of Central

Norway through the acquisition of 49% of the

shares in Senja Sjøfarm AS in Troms.

1997

Kverva Holding AS becomes

sole owner of SalMar.

Extension of the processing

plant at Nordskaget in Frøya.

Volume harvested in 1000’s of

tonnes gutted weight

116

104

The History of SalMar

This is SalMar The History of SalMar

2019

Increased ownership in Icelandic aquaculture company Arnarlax

Ehf to 59 per cent.

Gustav Witzøe new CEO following Olav-Andreas Ervik

appointment as new CEO in SalMar Ocean which strengthens the

focus on offshore fish farming.

Started construction of InnovaNor, the new harvesting and

processing plant on Senja in Northern Norway.

2018

SalMar increased

shareholding in Arnarlax

Ehf to 41.95 per cent.

First harvest from the

worlds first offshore fish

farm, Ocean Farm 1

Aqusition of 51 per

cent of the shares

in Mariculture AS,

to establish fish

farming offshore in

the open ocean.

Trond Williksen steps

down as CEO, Olav-

Andreas Ervik new CEO.

2017

September 2017, Ocean

Farm 1 arrived at its

destination in Frohavet,

off the Trøndelag coast in

Central Norway

The new smolt production

facility in Senja

was completed

2023

Successfully integrated NTS, NRS

and SalmoNor into operational

set-up in Norway.

Aquaservice company Frøy

sold following a succesful

strategic review.

New unsecured financing in place.

Finalized construction of new smolt

facility in Tjuin in Central Norway.

First harvest from semi-offshore

unit Arctic Offshore Farming.

2020

Started construction of the

expansion of the smolt facility

on Senja, Senja 2

Successful private placement

and listing of Icelandic

Salmon on Euronext Growth,

SalMars ownership reduced to

51 per cent.

2015

Principle approval of the ocean

farming pilot.

Establishment on Iceland

through acquisition of 22.91

% of the shares in the Icelandic

farming company Arnarlax Ehf.

2013

Acquisition of minority

shares in SalMar Rauma AS

and 50.4% of the shares in

Villa Organic AS.

Divestment of ownership in

P/F Bakkafrost.

2014

Acquisition of 8 green licences

Yngve Myhre steps down as

CEO and is replaced by Leif Inge

Nordhammer.

2016

SalMar awarded the first eight

development licences for

Ocean Farming AS.

SalMar increased shareholding

in Arnarlax Ehf to 34 per cent.

Leif Inge Nordhammer

steps down as CEO, Trond

Williksen new CEO

Volume harvested in

1000’s of tonnes

128

154.8

150

154

159

166

174

198

211267

131

2021

InnovaNor in operation, the new harvesting and

processing plant on Senja in Northern Norway.

Started construction of a new smolt facility in

Central Norway, Tjuin.

Successful issue of the first green bond and a

private placement in SalMar ASA.

Strategic partnership with Aker through SalMar

Aker Ocean to establish a global offshore

aquaculture company

Increasing our production capacity in Central

Norway through aqusition of ownershare in

Refsnes Laks AS and Nekton Havbruk AS

Scottish Sea Farms Ltd. acquired Grieg Seafood

Hjaltland UK Ltd. strengthening our value chain and

increasing our presence in the Shetland region

2022

Increasing position of SalMar to the worlds 2nd largest salmon producer by joining forces with NTS,

NRS and SalmoNor at the end of 2022 through a series of transactions.

Majority owner in aquaservice company Frøy after the transactions. Finalized construction of new

smolt facility on Senja in Northern Norway.

Gustav Witzøe stepped down as CEO and took up the position as Board Chair. Linda L. Aase CEO

from May until October and Gunnar Nielsen CFO from April until October. Frode Arntsen new CEO

and Ulrik Steinvik new CFO from October.

This is SalMar The ABC of Salmon Farming

Contents

This is SalMar The ABC of Salmon Farming

1 2

7 8

The ABC of Salmon Farming

Broodstock

The broodstock are the parent fish which provide

the eggs and sperm (milt) required to produce new

generations. The fertilised eggs take 60 days to

hatch when placed in an incubator kept at eight

degrees Celsius.

Eyed salmon eggs

After 25–30 days in the incubator the eggs

have developed to the stage where the eyes of

the salmon are clearly visible as two black dots

inside the egg.

Fry

The egg hatches when the eggshell cracks open,

liberating the baby fish (fry) inside. When it hatches

the fry is attached to a yolk sac, which provides it

with the sustenance it needs during its first few

weeks of life. From now on the fish’s growth and

development will all depend on temperature.

Initial feeding

When most of the yolk

sac has been absorbed, the

fry can be moved from the

incubator into a fish tank. They are

now ready for initial feeding. The water temperature is

kept at 10–14 degrees Celsius, and the fry are exposed

to dim lighting 24 hours a day. The initial feeding

period lasts for six weeks. As they grow the fry are

sorted and moved to larger tanks. Well ahead of their

“smoltification” all the fish are vaccinated before being

shipped by wellboat to the fish

farm’s marine net-pens.

Smoltification

The process whereby the juvenile

fish transition from a life in freshwater to a sea-

going existence is called smoltification. During this

process the fish develop a silver sheen to their

bellies, while their backs turn a blue-green colour.

Their gills also change when the

juvenile fish turns into a smolt.

On-growing

The farming of fish for human consumption takes

place in net pens, large enclosed nets suspended

in the sea by flotation devices. In addition to a solid

anchorage, net pens require regular cleaning and

adequate measures to prevent the farmed fish from

escaping. Growth in the net pens is affected by

feeding, light and water quality. Here too the fish

are sorted as they develop and grow.

Harvesting & processing

A year after transfer to the marine net pens, the

first fish are ready for harvesting. The fish are

transported live by wellboat to the processing plant.

There the fish are kept in holding pens, before being

carefully transferred to the plant itself. The fish

are killed and bled out using high tech equipment,

and always in accordance with applicable public

regulations. After harvesting the salmon is subject

to various degrees of processing.

Sales

The fish is sold either as whole gutted salmon

(fresh or frozen), fillets, in individual portions

or a wide range of other products, which are

distributed to markets around the world.

This is SalMar SalMar’s Operating Segments

Contents

This is SalMar SalMar’s Operating Segments

SalMar’s Operating Segments

ICELANDIC SALMON

Sea-farm production

No. of licences:

23,700 tonnes MAB

Harvest volume 2023:

17,900 tonnes gutted weight

Smolt production

No. of facilities:

4 smolt facilities in operation

Production in 2023:

Approx. 4.9 million smolt

SALMAR AKER OCEAN

Sea-farm production

No. of licences:

No. licences: 12,355 tonnes MAB

Harvest volume 2023:

2,300 tonnes gutted weight

FISH FARMING

CENTRAL NORWAY

(Møre og Romsdal & Trøndelag)

Sea-farm production

No. of licences:

85,482 tonnes MAB

Harvest volume 2023:

141,100 tonnes gutted weight

Smolt and cleaner fish production

No. facilities:

3 smolt facilities and 1

lumpfish facility

Production in 2023:

Approx. 23.6 million smolt

and 1.5 million lumpfish

FISH FARMING

NORTHERN NORWAY

(Troms og Finnmark)

Sea-farm production

No. licences:

69,275 tonnes MAB

Harvest volume 2023:

92,800 tonnes gutted weight

Smolt production

No. facilities:

2 smolt facilities

Production in 2023:

Approx. 35.6 million smolt

SALES & INDUSTRY

Volume sold:

Approx. 240,000 tonnes

gutted weight

Share of secondary processing:

36.5%

Number of harvesting- and

processing plants:

3 in operation

2 Includes 2 time-limited demonstra-

tion licences.

3 Includes 6,051 tonnes MAB in

development licences for the Arctic

Offshore Farming project and in

addition the company has 8 devel-

opment licences for the Smart Fish

Farm project

1 Includes 4 time-limited demonstration

licences and 1,100 tonnes MAB in

development licences.

This is SalMar SalMar’s Operating Segments

Fish Farming Central Norway (Møre og Romsdal & Trøndelag)

Fish Farming Central Norway is the region in which the SalMar Group first established its business.

Initially this was based on assets acquired from a company which had gone into liquidation, and which

had one licence for the production of farmed salmon and a harvesting and processing plant in Frøya

that was designed to handle white fish. Since then, both the Group as a whole and the segment has

experienced a fantastic growth journey.

Central Norway has today 85,482 tonnes MAB, and also operates several R&D licences in collaboration

with other companies. In 2022 SalMar acquired ownership in SalmoNor. increasing the production

capacity in the region. The segment has 3 smolt facilities in operation. In addition the segment has 1

facility for the production of cleaner fish.

The fish farming operations are located in Central Norway, stretching from Sunnmøre in the south to

the Namdal coast in the north. Fish Farming Central Norway is divided into 5 regions, which are each

led by a regional manager. The environmental conditions for salmon farming in this region are good,

with favourable sea temperatures all year round thanks to the Gulf Stream, a high water replacement

rate and several suitable locations.

SalMar’s fish farms focus on cost-effective operation and maintain a high ethical standard with respect

to animal husbandry. In order to contribute to SalMar reaching its goal of being the most cost-effective

producer of farmed salmon, there is a continuous focus on sub-goals. The company was quick to introduce

its own standards and ‘best practices’ in order to secure increased efficiency. This involves, among other

things, concentrating marine-phase production at large, sustainable facilities stocked with the correct

biomass volume and with a good environmental carrying capacity. SalMar is also working strategically

to secure locations so that we can take our share of future production growth. In 2021 the first closed

net pen for the company was taken into operation and a second closed net pen will start production in

2024. In addition, the segment both has semi-closed and submerged farming technology in operation.

The segments smolt facilities have a high level of expertise with respect to day-to-say operations as

well as development/project management. The production of smolt is currently transitioning to the use

of recirculating aquaculture systems (RAS) technology. In 2023 a new RAS smolt facility at Tjuin, came

into operation where the first smolt will be delivered to sea in 2024.

Fish Farming Northern Norway (Troms og Finnmark)

SalMar has the largest aquaculture operation in Troms og Finnmark County, with activities stretching

from Harstad in southern Troms to Sør-Varanger in Finnmark. The business is divided into three regions,

which are each led by a regional manager. The segment’s head office and administration are located at

InnovaNor our harvesting and processing facility on Senja.

The segment has 69,275 tonnes MAB for the production of farmed salmon. In addition, SalMar co-op-

erates several R&D licences. In 2022 SalMar acquired ownership of NRS, increasing the production

capacity in the region. The segment has 2 smolt facilities.

Over many years, the segment has focused systematically on enhancing the expertise of its workforce

and employs several apprentices. Remote feeding has been an important focus area for the segment.

This means joint surveillance and control of all SalMar’s sea sites from South Troms to East Finnmark. The

sea farms are monitored even when there is no one physically on site. Data collection is more structured

in the remote feeding centre, which provides a better foundation for decision making forward in time.

The segment has 2 smolt facilities, which is based on recirculating aquaculture systems (RAS) technol-

ogy. Robust, high-quality smolt is a decisive factor for the success of the whole value chain and in the

2023 the first smolt from the expansion of the facility on Senja was delivered. The expansion will result

not only in the capacity to produce more smolt, but also the flexibility to produce larger sized smolt.

It is possible to produce more salmon in Norway, and Northern Norway has a considerable potential for

further growth. This region has excellent environmental conditions for sustainable production, which

we nurture through expertise and systematic improvement efforts. The expansion of SalMar’s smolt

production, production capacity through NRS as well as the new local harvesting and processing plant,

InnovaNor, underpin the importance to the Group of both Fish Farming Northern Norway and the

region as a whole.

This is SalMar SalMar’s Operating Segments

Sales & Industry

Sales & Industry handles the Group’s sales activities and harvesting and processing activities in Norway.

The segment sold approx. 240,000 tonnes of salmon and other fish-based products in 2023. Sales

activities concentrate on the markets of Europe, Asia and America. In all, the segment distributes salmon

to more than 50 different countries. Because SalMar attaches particular importance to market proximity,

the segment opened a new sales office in Thailand in 2023 and has in addition sales offices in Japan,

South Korea, Vietnam, Taiwan and Singapore.

InnovaMar is SalMar’s main industrial processing facility. It is located at Nordskaget in Frøya, in close

proximity to Fish Farming Central Norway’s sea farms. InnovaMar is a modern building covering 17,500m

It has an advanced equipment park for harvesting, fileting and portioning. It has the capacity to har-

vest 150,000 tonnes of salmon annually. A significant portion of the volume harvested goes on to

secondary processing before being sent to customers and consumers around the world. Innovative use

of production technology increases the quality of the final product, reduces costs and improves the

employees’ working environment.

Through SalMar’s co-ownership of Vikenco AS, SalMar facilitates the harvesting of fish from the southern

part of Central Norway and Møre & Romsdal County. In 2021 upgraded Vikenco came into operation

increasing both harvesting, processing, storage and freezing capacity of the facility and in 2024 further

upgrade of harvest capacity is scheduled to be completed.

At the end 2021 the new harvesting and processing facility in Northern Norway, InnovaNor, came into

operation and during 2023 the facility showcased its ability to handle large volumes effectively. This

is an important move to strengthen the region as an important industrial engine in the Group’s devel-

opment and will contribute to local value creation and new employment opportunities. InnovaNor is the

largest and most modern processing facility in Northern Norway covering 20,000 square meters. It has

a capacity to harvest 150,000 tonnes of salmon annually. The building incorporates landing, harvesting,

processing, packaging, freezing and storage capabilities including an office wing, which is the new

headquarter for all our activities in Northern Norway. The facility is rigged with the latest in technology

for value added processing built with scalability in mind with both post and pre-rigor capacity, thereby

strengthening our product portfolio and offering to customers in all markets.

Icelandic Salmon

The company is listed on Euronext Growth and from October 2023 also on the Icelandic Stock Exchange

NASDAQ First North. At the end of 2023 SalMar owned 52.5% of the shares in the company.

Icelandic Salmon is Iceland’s largest producer of farmed salmon. The company is fully integrated, with its

own hatcheries, sea farms, harvesting plant and sales force. The natural conditions, with good quality

seawater and temperatures on a par with Northern Norway, provide a sound basis for engaging in sus-

tainable aquaculture in Iceland. The company has its headquarters and harvesting plant in Bildudalur in

Iceland’s Westfjords region, in close proximity to the sea farms located in the surrounding fjord systems.

In addition, the company has 4 smolt facilities, three located on the south coast of Iceland and one in

the Westfjords, as well as a sales office in Reykjavik.

Farming in Iceland is still in an early phase, and during 2023 important measures have been implemented

in the company that will provide better biological and economic results in the long term. Some highlights

in 2023 include improved utilization of MAB capacity, increase of smolt production capacity for further

growth and continued progress in the market of the brand Arnarlax-sustainable Icelandic salmon.

SalMar together with Icelandic Salmon has a strong belief in sustainable aquaculture production in Iceland.

This is SalMar SalMar’s Operating Segments

SalMar Aker Ocean

To strengthen and concentrate its efforts in the area of offshore

aquaculture, SalMar created the subsidiary SalMar Ocean AS, later

changed to SalMar Aker Ocean AS. Late 2021 SalMar and Aker through

Aker Capital entered into a partnership whereas Aker Capital has

15% ownership of SalMar Aker Ocean and SalMar ASA control the

remaining 85%, with the purpose of creating the world leading off-

shore farming company.

The company aims to create the world’s most reliable and intelligent

offshore farming operations with the highest requirements for fish

welfare and with a zero-emissions value chain ambition. With an

ambition of producing 150,000 tonnes of salmon per year.

In 2023 the Arctic Offshore Farming project was included in the

segment and the segment has currently 2 semi-offshore units in

operation. Arctic Offshore Farming started harvesting of its first

production cycle at the end of 2023 and finished the production

cycled early in 2024. Ocean Farm 1 started its third production cycle

in the spring 2023 and harvest is on plan for 2024.

In end of September 2023, site approval for one open ocean unit

was granted to SalMar Aker Ocean’s Smart Fish Farm, approximately

50 nautical miles west of Frøya in Central Norway. Due to regulatory

uncertainty SalMar Aker Ocean decided that further work on offshore

aquaculture in Norway is currently on hold. The company will now

fully focus on growth semi-offshore and utilize the capacity of its

existing two semi-offshore units for the production of sustainable

Norwegian salmon. It will also continue to explore opportunities out-

side of Norway.

This is SalMar SalMar’s Cultural Tenets

Contents

This is SalMar SalMar’s Cultural Tenets

What we do today

we do better than

yesterday

To be the most cost-effective salmon producer demands continuous

improvement at all stages of the production process. This tenet

is about daring to step into the unknown and develop a culture of

winning, where performance is both measured and celebrated.

The job is not done

until the person you

are doing it for is

satisfied

This means that we will meet the expectations of others

and demand high standards of each other, in accordance with

our own SalMar standards. There are many ‘suppliers’ and

‘customers’ in the production chain, and it is only by treating

each other with mutual respect that we will succeed.

Focus on the solution

Everyone who works for SalMar, regardless of position or place, has

a duty to help come up with solutions and contribute to improvement

processes. We will challenge existing practices and systems, we will

jointly implement solutions, and we will talk to, not about, each other.

The job we do today

is vital to the success

of us all

Although SalMar as a whole numbers more than 1,800 people, it

is vital to develop personal attitudes and an understanding that

what happens is up to me and my function. It is therefore vital that

everyone is familiar with our vision, objectives and values, and that

we support each other for our common passion for salmon, and on our

way to being at all times the lowest-cost supplier of farmed salmon.

Sustainability in

everything we do

High ethical and moral standards form the basis for developing an even

stronger focus on safeguarding the environment that we work in day to

day, and that we are the temporary custodians of. We shall not deplete

the environment, but ensure that we pass it on unimpaired to the next

generation. This is our shared social responsibility, and everything we

do must stand up to public scrutiny both today and in the future.

We care

To succeed as a team we must also develop the right attitudes

towards, as well as respect and care for salmon, co-workers,

customers, business associates and the environment. We

must think for ourselves but act with loyalty, and always

bear in mind that we are engaged in food production.

SalMar’s Cultural Tenets

SalMar’s corporate culture is constantly evolving, and builds on the success factors that have been cultivated within the

company since its inception in 1991. Although the company’s culture is affected by both external and internal framework

conditions, it remains firmly anchored in a few overarching principles, in particular a strong focus on good husbandry,

operational efficiency and safe food production.

This is SalMar Passion for Salmon

Contents

This is SalMar Passion for Salmon

Passion for Salmon

The aquaculture industry is developing rapidly, and the potential for

further growth is enormous. However, at SalMar we are in no doubt that

any growth must be sustainable: environmentally, socially and financially.

In 2014, to reinforce our focus on the elements that have made

SalMar the company it is today, we adopted a new vision that will

henceforth guide our steps:

“Passion for Salmon”

Although SalMar continues to pursue its stated aim of cost leadership,

it is moving from a focus on outcomes to a focus on performance.

We aim for excellence at all levels and in all aspects of our operation.

The new vision will underpin all activities and all actions within SalMar.

All decisions relating to production will be made on the basis of our

passion for salmon. The fish will be farmed in conditions most conducive

to their well-being. We believe that the best biological results will pave

the way for the best financial results, and thus safeguard our position

as the most cost-effective producer of farmed salmon in the world.

This new vision and ambition depend on the existence of a winning

culture throughout the organisation. The source of SalMar’s corporate

culture and the company’s cultural tenets is our shared passion for

salmon. These tenets underpin our vision and describe the attitudes

and conduct expected of all employees.

Sustainability

and Corporate

Responsibility

Fish 35

Environment & Technology 50

People & Society 64

GRI Index and Third-Party Verification 72

Sustainability and Corporate Responsibility Sustainability and Corporate Responsibility

Sustainability and

Corporate

Responsibility

Fish

Good fish welfare is the foundation of

SalMar’s business. We work systematically to

create an environment in which the salmon

thrives and remains healthy.

Environment and

Technology

SalMar believes in preserving the seas for future

generations. We minimise our footprint with

measures and routines throughout the entire

value chain.

People and Society

SalMar acts as a responsible corporate citizen.

We believe in creating local value and safe

workplaces and support the local communities

where we operate.

Fish People

Environment

Sustainability is essential for SalMar as it ensures the longevity and profitability of our business while promoting environmental and social bal-

ance. The transition and maintenance of sustainable practices, such as minimizing environmental impacts and preserving natural resources, can

help maintain healthy ecosystems and promote fish welfare. This, in turn, can lead to a reliable and consistent supply of high-quality salmon for

our consumers, as well as the long-term viability of the industry. Furthermore, practicing sustainability can also build consumer trust and ensure

long-term success in an increasingly eco-conscious market.

Today, the world's population is consuming resources at a rate that surpasses the planet's ability to generate them. Notably, food production is

accountable for a significant fraction of the ecological and climate burden on the planet. To sustain the ever-expanding global populace, we require

sustainable approaches to food production that minimize environmental impacts. Salmon farming stands out as one of the most sustainable

techniques for producing food, primarily due to its eco-friendliness in terms of space utilization, freshwater consumption, and greenhouse gas

emissions. Consequently, aquaculture and salmon farming hold great potential to provide the world's growing population with healthy, protein-rich

food in the foreseeable future.

Sustainability and Corporate Responsibility

Sustainability in Everything We Do

"Sustainability in everything we do" is one of SalMar's key tenets. For

SalMar, sustainability extends beyond the scope of its operations,

encompassing its behavior in the surrounding areas and our direct

and indirect impacts throughout the value chain. SalMar endeavors

to safeguard the seas while simultaneously prioritizing the well-

being of its employees, salmon, and the environment, and advancing

sustainable development. This includes actively contributing to the

evolution of new technology to decrease the biological footprint of

its production and promote environmental preservation.

The Group recognizes the diversity of its corporate social

responsibility, which includes responsibilities as an employer,

producer, supplier of healthy food, user of the natural envi-

ronment, and administrator of financial and intellectual

capital. Social responsibility is integral to SalMar's values,

and the company is committed to conducting its operations

transparently and with accountability, while minimizing the

impact on the natural environment.

SalMar's holistic approach hinges on the understanding of the interde-

pendence between caring for people, the economy, and the environ-

ment, which are essential components for sustainability. As a result,

sustainability is a crucial consideration in everything that SalMar does.

The 2023 report marks SalMar's 10-year anniversary for sustain-

ability reporting. For ten consecutive years, SalMar have published

their sustainability report, an important, and now long-lived, part

of our devotion to transparency and benchmarking on important

sustainability parameters. Like the previous year, the 2023 report

underwent third-party verification by Ernst and Young, as detailed

in the appendix. The report includes businesses in which SalMar held

over 50% of the shares and/or had operating control in 2023, and is

thus included in the consolidated accounts. Scottish Sea Farms, an

associated company of SalMar through Norskott Havbruk, is not part

of the sustainability reporting.

Following the largest acquisition in the company's history in late 2022,

much of the sustainability-related efforts in 2023 were focused

around onboarding new employees, sustaining and progressing

a strong corporate culture and establishing best practice.

As previously, the report is prepared according to the principles required

by the Global Reporting Initiative (GRI). Information on the

report's alignment to the GRI Index is provided as an attach-

ment to the report.

This will be SalMar's final report aligned with the GRI, as SalMar

prepares to comply with the upcoming EU Corporate Sustainability

Reporting Directive (CSRD) and the associated European Sustainability

Reporting Standards (ESRS) from 2024.

The report is structured around SalMar's three core pillars of sustain-

ability throughout the value chain. Key Performance Indicators (KPIs)

under each part of the report are reported in Norway and Iceland,

which represent the two key operating regions for SalMar. Our activity

through subsidiaries in Norway, i.e., SalMar Aker Ocean, is consolidated

in the presented values for Norway.

Please address any queries about the report to SalMar’s Head of

Sustainability Mats Wærøe Langseth.

10 years

of sustainability

reporting

Sustainability and Corporate Responsibility

Our Principles

SalMar's facilities are strategically located in rural coastal areas of Norway and Iceland, where the clean

water and natural conditions are optimal for producing healthy salmon. These facilities have become vital

institutions for both large and small coastal communities, providing job opportunities and supporting local

economies. SalMar recognizes the importance of these communities and their surrounding environment

to its operations and values the benefits it derives from them. Consequently, the Group is committed to

fulfilling its responsibilities as an employer, supplier of healthy food, user of the natural environment,

and administrator of financial and intellectual capital.

Salmon farming demands optimal environmental conditions to ensure the fish's health and welfare.

Therefore, SalMar undertakes extensive monitoring and research and development (R&D) activities

to protect the environment and ensure sustainable operations. The Group assesses every aspect of

its operations for sustainability risks, and appropriate measures are implemented through established

procedures and instructions. To ensure compliance with the guidelines for sound operations, SalMar

conducts regular measurements and internal audits.

Leadership of SalMar’s sustainability endeavours

The CEO of the Group bears the ultimate responsibility for SalMar's environmental impact and its efforts

towards sustainability. SalMar has established quality departments to oversee and evaluate the progress

being made in this area. Nonetheless, the Head of Sustainability and management teams in Fish Farming

and Sales & Industry, with the assistance of qualified professionals, coordinate these efforts. To ensure

that SalMar, as a whole, adopts a cautious approach and can execute necessary measures, systematic

risk and opportunity assessments are carried out at the highest level and in all departments, including

those related to climate risks. This holds true for SalMar's subsidiaries, where the Group's presence on

the board of directors guarantees consideration for these matters.

The departmental management is accountable for ensuring that monitoring activities are conducted

and reported. The quality managers follow up and assist in this regard, supporting departmental and

operational leaders. Quality managers, along with other quality assurance staff, participate actively in

regular management meetings at all levels of the organization. These meetings address quality, safety,

the working environment, fish welfare, and environmental/climate issues.

Furthermore, SalMar engages with governing bodies and trade associations to ensure that ESG disclo-

sures are done in accordance with active regulations both nationally and internationally.

Sustainability and Corporate Responsibility

Dialogue with stakeholders

SalMar recognizes that it has a diverse group of stakeholders and

is committed to maintaining constructive communication with each

of them. We engage in this dialogue through various means such

as in-person meetings, media outreach, interim and annual reports,

stock market notices, GRI reports, advertisements, R&D projects,

and our website, www.salmar.no. These dialogues take place both

locally and at the corporate level. At SalMar, we understand that our

success depends on working collaboratively and treating each other

with candour and respect. This is a fundamental part of our guiding

principles for all dialogues.

In determining which stakeholders to include in our future sustaina-

bility reporting efforts, we consider the extent of their influence over

our organization. Our aim is to engage our stakeholders in a meaningful

and effective manner, while ensuring that they derive value from their

interactions with SalMar. We take important steps in this process,

such as gaining acceptance for the issues selected, shedding light on

the different perspectives regarding impact, identifying challenges,

gathering external feedback, and sharing knowledge.

SalMar engages in a thorough process to identify stakeholders with

whom it will initiate dialogue

• Public authorities administer the public interest in the

area and grant licences to operate, making them a natural

inclusion for stakeholder dialogue.

• Selection and approval of suppliers and engagement with

local stakeholders and in R&D activities is determined by

management teams in the various parts of the company.

• Identification of the NGOs with which SalMar will have

direct contact is determined by Group Management.

The table shows the various stakeholder groups that are included in

SalMar’s analyses.

SalMar’s stakeholders

Internal influence Business associates Customer groups External influence

Employees Partners External customers

Government / regulatory

authorities

Shareholders/investors Suppliers New customers Industry associations

Board and Group

Management

Service providers International customers Discussion partners

R&D partners National customers NGOs

Research establishments

Local communities

Media

Sustainability and Corporate Responsibility

Transparent reporting and

benchmarking

Open and transparent reporting of our performance

increases our stakeholders’ trust in us. In 2023, we

continued our efforts to report through a greater

variety of channels. In furtherance of this, SalMar

has also chosen to continue commission third-

party verification of its sustainability KPIs and

reporting in accordance with the Global Reporting

Initiative (GRI). Benchmarking on sustainability and

innovation trends is also important for SalMar to

understand its position in the industry. This is done

through a variety of channels. The table below

shows some of the ways SalMar reports on sustain-

ability-related matters.

Annual Report

Integrated report combining sustainability

reporting with financial reporting.

Green Bond Report

For the allocation of the received proceeds from the green bond for 2021, SalMar issues reports annually outlining

how the proceeds were used in accordance with the green bond framework. The report can be found on salmar.no.

CDP Report

Reporting to the Carbon Disclosure Project (CDP) involves reporting of strategy, climate, and energy accounts,

with associated initiatives and improvements. SalMar reported to the CDP Climate Change in 2023 and will do so

again for 2024.

In 2023 SalMar received a score of A- for its CDP Climate Change response.

ASC reports

Audit reports from our ASC-certified sites are available on our website or at www.asc-aqua.org.

Green licences

A separate report is published annually on SalMar’s experience and evaluation of its operations under green licences.

This is available on our website.

TCFD Report

Along with this Annual Report, SalMar publishes its TCFD report. The report assesses climate-related risks and

opportunities, and their financial and operational implications on SalMar. The report can be found on salmar.no.

Gender Equality Report

In 2022, SalMar published its first Gender Equality Report, evaluating its gender equality practices, hereunder

mapping its remuneration practices and involuntary part-time employments. This is a biennial report that complies

with the expectations set by the activity duty and the duty to issue a statement set by the Norwegian Equality and

Anti-Discrimination Act.

Remuneration Report

SalMar publishes its Remuneration Report on an annual basis, providing a full disclosure of the

company`s remuneration decisions relating to the Board of Directors and the Executive Management Team as well as

the related business context.

SalMar Policies

In 2022, SalMar published 18 sustainability policies on its webpage. These are public statements from SalMar that

give insight into how SalMar conducts its endeavours while always considering sustainability in everything we do.

Salmar.no

Our website is updated regularly. Here you

will find relevant information about SalMar.

FOURTH QUARTER / 2022

Quarterly Reports

Quarterly update of financial and operational results.

Sustainability and Corporate Responsibility

Sustainability

Ratings 2023

SalMar is among Europe’s Climate Leaders

– Financial Times and Statista

According to the Financial Times and Statista's annual publication,

Europe's Climate Leaders

, SalMar is acknowledged as standing at the

forefront in Europe for reducing Scope 1+2 emission intensity (emissions

relative to revenue). The 2023 publication marks the third listing of

Europe's Climate Leaders, with SalMar consistently included in all three.

SalMar is a Climate Winner in Norway

– PwC

PwC’s annual Climate Index

evaluates the 100 largest companies in

Norway on their ability to reduce their climate impact. The report con-

cludes that only nine out of the 100 companies are reducing their total

climate footprint aligned with the Paris Agreement. SalMar, along with

three other aquaculture companies, were announced as “Climate Winners”.

1 https://www.ft.com/climate-leaders-europe-2023

2 https://www.pwc.no/no/pwc-aktuelt/pwcs-klimaindeks.html

SalMar is a Low-Risk Company for ESG Risks

– FAIRR Initative

The Coller FAIRR Protein Producer Index

is one of the most detailed

assessments of ESG in the world. The Index assesses 60 of the largest

listed global meat, dairy and aquaculture companies on ten ESG factors:

greenhouse gas emissions, deforestation and biodiversity, water use

and scarcity, waste and pollution, antibiotics, working conditions, animal

welfare, food safety, governance, and alternative proteins. SalMar ranks

7th among the 60 assessed companies and have for the first time been

ranked as a “Low-Risk Company for ESG Risks”.

SalMar has an A Score for ESRS readiness

– Position Green

Position Green’s annual report ESG100

reviews the ESG reporting of

the 100 largest listed companies from Norway, Sweden, and Denmark,

respectively. The 2023 analysis assesses how well prepared the 300

participating companies are for the introduction of the European Sus-

tainability Reporting Standards (ESRS). SalMar were given an A rating,

and will, as previously mentioned, be reporting in accordance with the

ESRS from the 2024 annual report.

3 https://www.fairr.org/resources/reports/protein-producer-index-2023

4 https://www.positiongreen.com/esg100/

SalMar achieved an A- Score in CDP

Climate Change

– Carbon Disclosure Project (CDP)

The CDP Climate Change assessment is an extensive analysis of a compa-

ny's climate risks, mitigating actions and commitments. SalMar achieved

an A- Score in 2023, placing us in the Leadership category.

SalMar is included in the Euronext ESG Index

SalMar is included in the Norwegian Stock Exchange’s ESG Index (OBX

ESG)

, connecting the best performing companies on several hundred

ESG KPIs through the Sustainalytics ESG Risk Rating.

5 https://live.euronext.com/en/product/indices/NO0012513474-XOSL

Sustainability and Corporate Responsibility

Sustainable Supply Chain Management

SalMar are experiencing increased attention and expectations from internal and external stakeholders

towards a sustainable supply chain management. Rooted at the senior management, supply chain

management is an integral part of SalMar’s operational and strategic external dialogue.

SalMar acknowledges that sustainability does not only concern our own operations but must be rooted

in all processes throughout the value chain. Obtaining and maintaining a sustainable value chain requires

dedicated efforts and clear procedures. Please find SalMar’s Procurement Policy and Supply Chain

Management Policy on our website. These provide insight into how SalMar works towards ensuring

a sustainable supply chain.

SalMar’s procurement and due diligence processes assess potential strategic partners on their environ-

mental profile, social performance, professional reliability, and their ability to meet our product demands.

Compliance with standards relating to social compliance, environmental practices and relevant regulations

are also embedded in contracts with suppliers.

Regular internal and external supplier audits are an integral part of SalMar’s supply chain management.

As part of SalMar’s endeavours to achieve a strong, transparent, and sustainable value chain, and

following the Norwegian Transparency Act, SalMar have conducted a due diligence assessment of its

value chain related to human rights risks aligned with OECD guidelines. A full statement on findings can

be found on our website, in accordance with the Norwegian Transparency Act. SalMar's due diligence

process is described in further detail later in this report. For additional information on the topic, please

see SalMar’s Human Rights Policy and Whistleblowing Policy on our webpage.

Double materiality analysis

A detailed and holistic materiality assessment is key to understanding our impacts, risks, and opportunities.

The materiality assessment also provides valuable insights into what topics are most important to our

internal and external stakeholders, and thereby reflects important focus areas for SalMar going forward.

In 2023, SalMar initiated the process of carrying out a new double materiality analysis in accordance

with the upcoming Corporate Sustainability Reporting Directive requirements. The analysis goes into

even greater depth and will involve a larger number of stakeholders. The results will be published in the

next Annual Report, in accordance with the CSRD guidelines.

SalMar has performed an annual re-assessment of the existing materiality assessment aligned with

the GRI methodology, and the results can be seen in the following figure. The process and results are

approved by the Board and the Senior Management. The material aspects identified in our assessment

are the foundation for the content covered in this report. The colours indicate the part of the report in

which the aspect is described in more detail.

Significance for stakeholders

Material

•

Interaction with wildlife

•

Climate Risk

•

Waste and nutrient management

•

Water risk & scarcity

•

Fish escapes

•

Fish welfare

•

Safe and healthy food

•

Salmon lice

•

Sustainable feed

•

Biodiversity

•

GHG emissions

•

Human rights

•

Regulatory compliance

•

Safe and secure workplaces

Important

•

Collaboration with others

•

Degree of secondary processing

•

Research & development

•

Site environment status

•

Equality

•

Local value creation

Important Material

Significance for SalMar

People and Society Environment and Technology Fish

Sustainability and Corporate Responsibility

Targets in focus: 5.1, 5.5, 5.C:

SalMar published its first Gender Equality

Report in 2022, concluding full gender pay

equality at SalMar. SalMar also published its

first public policy on Non-discrimination and

Equal Opportunities, which can be found

at our website. Moreover, SalMar’s female

ratio has increased four years in a row.

Targets in focus: 6.3, 6.4, 6.6:

SalMar promotes circular economies and

is working tirelessly to continue its tran-

sition towards these. SalMar is continu-

ing to increase water use efficiency and

is transitioning to recirculating aquacul-

ture systems.

Targets in focus: 7.2:

SalMar have committed to the Science

Based Targets initiative to reduce its

greenhouse gas emissions by 42% from

2020 to 2030. For SalMar’s direct opera-

tions, the most important activities involve

transitioning to renewable energy sources.

This is one of SalMar’s key focus points

towards 2030.

UN’s Sustainable Development Goals

At SalMar, we are committed to supporting the United Nations' 17

Sustainable Development Goals (SDGs) through our actions and initia-

tives. While all SDGs are important to us, some are particularly relevant

and provide areas where we can make the greatest contribution. We

prioritize these SDGs as focus areas for our Group's efforts.

More information on the targets for each goal can be found at

sdgs.un.org/goals

Targets in focus: 2.4:

Salmon farming is a sustainable way of

producing healthy, nutritious food with

a low carbon footprint, low water con-

sumption and high resource efficiency, all

on the terms of the salmon to ensure high

welfare standards and quality.

Targets in focus: 3.4:

Salmon is a healthy source of protein, an

important source of omega-3 and a good

source of vitamins and minerals. Moreover,

it is well documented that eating salmon

contributes to protect against cardiovas-

cular disease.

Targets in focus: 8.5, 8.8

SalMar is dedicated towards ensuring that

all our employees are valued, safe and

respected in the workplace. This includes

our supply chain. SalMar has an anony-

mous whistleblowing channel available for

all public and public policies on Non-dis-

crimination and Equal Opportunities, and

Human Rights.

Sustainability and Corporate Responsibility

Targets in focus: 11.3:

SalMar is dedicated to its employees and to

the local communities of where we oper-

ate. SalMar is conscious that operating in

remote areas requires contributing to the

local communities so that they also see

the value of SalMar’s presence.

Targets in focus: 9.4:

SalMar is a forerunner in the industry

when it comes to improving, upgrading

and transforming operations and activi-

ties. Through more than 30 years, SalMar

has been adapting and developing new

ways of operating. In recent years, SalMar

has brought more newbuilds to rural

parts of Norway.

Targets in focus: 10.1, 10.2, 10.4

SalMar contributes to reducing inequalities

through fair, non-discriminatory wages,

social inclusion for all employees and due

diligence of social standards and equality

practices through our value chain.

Our Non-Discrimination and Equal Oppor-

tunities Policy is available on our website.

Targets in focus: 13.1, 13.3:

SalMar published its TCFD Report, evaluat-

ing the possible financial impacts on SalMar

from different climate-related scenarios.

SalMar takes climate change very seri-

ously and is working towards limiting our

impacts on the climate. Furthermore, we

are ensuring that SalMar is resilient to the

consequences that climate change brings.

Targets in focus: 12.2, 12.3, 12.4, 12.5,

12.6, 12.8:

Borrowing natural resources to carry out

our operations brings responsibilities that

SalMar takes very seriously. This involves

responsible and sustainable operations

in all parts of the value chain. SalMar is

dedicated to reducing waste, food waste

and increasing recycling rates and the

procurement of products or services with

circular designs.

Targets in focus: 15.2:

SalMar has, along with the rest of the Nor-

wegian fish farming industry, taken a firm

stance in the battle against deforestation.

SalMar will only purchase feed ingredients

that have been certified by a recognized

entity to be deforestation free. This way,

we ensure that our activities do not con-

tribute to harmful deforestation.

Targets in focus: 14.1, 14.2

SalMar has responsibilities concerning

surrounding ecosystems to our opera-

tions. SalMar is leading projects to gain

more insight into our impacts on sur-

rounding bodies and how to mitigate the

adverse impacts. The fish farming indus-

try is strictly regulated, but SalMar always

wants to go beyond to be proud of the way

we do things.

Targets in focus: 16.5, 16.8:

SalMar has a public policy on Anti-corrup-

tion and bribery stating that SalMar will

stay cognizant on this matter and report

any risks or events of wrongdoings. SalMar

also takes a firm stance stating that we

have zero tolerance for corrupt practices

from any employee, manager, member

of the Board of Directors or any related

third party.

Targets in focus: 17.14, 17.17

Stakeholder engagement and estab-

lishing common goals and pathways

toward sustainable development is one

of SalMar’s most important contributions

to the industry, to local communities and

to our other stakeholders. We believe that

partnership is integral to our shared suc-

cess of reaching our goals.

Sustainability and Corporate Responsibility

Identifying Taxonomy-Eligible Activities

As a fish farmer and producer of healthy food with a global reach, SalMar are involved in many economic

activities. However, our main activity, aquaculture and food production, of which the majority of our

economic activities lay, is not included as a potentially sustainable activity. It is our hope that the EU

expands its list of sustainable activities to include food production, a necessary activity for humanity

and an activity with a significant potential for being done in a sustainable way.

SalMar has activities strongly related to all the environmental objectives and consider all objectives to be

important to our endeavours. When going into the details of the Taxonomy-eligible activities, only one

activity was significantly related to SalMar’s financial activities and within the scope of SalMar’s reporting:

Activity 6.10 - Sea and coastal freight water transport, vessels for port operations and auxiliary activities.

The activity is a transitional activity for Climate Change Mitigation. The activity was assessed against

the Climate Change Adaptation criteria which was found not relevant. Each vessel has been assessed

separately resulting in lowest level of disaggregation.

SalMar are involved in several other Taxonomy-eligible activities through the use of third parties, e.g.,

through supplying our sea sites with onshore electrical power and through the recovery of our bio-

waste by anaerobic digestion or composting, but the reporting privilege lays with those third parties.

Also, SalMar’s substantial activity of building our newest smolt facility at Tjuin in 2023 was disregarded

from the reporting, as Taxonomy Activity 7.1 – Construction of new buildings separates stringently

between the structure of the building (e.g. walls, floors, roof) and the technical equipment of the

building. Since the building is made for a technical purpose, we found it difficult to separate the two,

especially in our accounts.

Climate Change Mitigation

Holding the increase in the global

average temperature to well below

2°C and pursuing efforts to limit it to

1.5°C above pre-industrial levels, as laid

down in the Paris Agreement.

Sustainable Use and Protection

of Water and Marine Resources

Achieving the good status of bodies of

water or preventing the deterioration

of bodies of water that already have

good status.

Pollution Prevention and Control

Prevent and reduce pollution

significantly, covering air, water, and

soil pollution, and comply with relevant

environmental standards.

Climate Change Adaptation

Adjustment to actual and expected

climate change and its impacts.

Transition to a Circular Economy

Foster the efficient use of resources,

promote recycling, and minimize waste

generation to support the transition to

a circular economy.

Protection and Restoration of

Biodiversity and Ecosystems

Preserve and restore good condition and

resilience of ecosystems and the con-

servation status of habitats and species.

EU Taxonomy Reporting

The EU Taxonomy refers to the framework established by the European Union to facilitate sustainable

finance by providing a standardized classification system for environmentally sustainable economic activ

ities. It is a key element of the EU's broader sustainable finance agenda aimed at aligning private sector

investments with the EU's sustainability goals, particularly those outlined in the European Green Deal.

SalMar’s approach to the EU taxonomy starts by identifying the financial activities that have a potential

of being sustainable, as per EU Regulation 2020/852 and the supplementing Delegated Acts. These

activities are denoted “Taxonomy-eligible activities”. Next, the activities need to meet comprehensive

technical criteria to be considered sustainable, including making a substantial contribution to one or

more of the EU’s environmental objectives and doing no significant harm to any of the other objectives.

Moreover, the activities must meet the Minimum Safeguards set out in the EU Regulation. The Minimum

Safeguards aims to establish whether companies engaging in environmentally sustainable activities

also meet certain standards when it comes to human and labour rights, bribery, taxation, and fair com-

petition. If Taxonomy-eligible activities meet the technical criteria and the Minimum Safeguards, they

are considered sustainable, denoted “Taxonomy-aligned activities”.

The EU’s Environmental Objectives

Sustainability and Corporate Responsibility

Identifying Taxonomy-Aligned Activities

After deriving the Taxonomy-eligible activities, the next step is to evaluate the technical criteria for the

activity to ensure substantial contribution and no significant harm. For the Taxonomy-eligible activity

6.10 - Sea and coastal freight water transport, vessels for port operations and auxiliary activities, the

substantial contribution to Climate Change Mitigation encompasses the vessels’ energy consumption

being derived at least 25% from zero direct (tailpipe) CO emission fuels, and the vessels not being

dedicated to the transport of fossil fuels. SalMar's hybrid and electrical workboats meet this criteria,

but the hybrid well-boats on long-term lease could not meet this criteria.

The Do No Significant Harm criteria encompassed undertaking an environmental impact assessments

and evaluating the risk of environmental impacts and impacts on water quality, fulfilling requirements

towards waste handling, scrapping regulations, storage of hazardous materials, limiting emissions to air

and to sea, documenting treatment and disposal of ballast water as well as coating used on the vessels,

reducing noise and vibrations through choice of propellers and hull design, and overall limiting impacts

on biodiversity and ecosystems.

Complying with Minimum Safeguards

Finally, it is necessary to verify that SalMar’s activities are undertaken while complying with the minimum

safeguards set out under the Taxonomy Regulation. Please refer to the following sections of this report

and/or our public policies for information on how we comply with the requirements:

Human rights, including workers’ rights

See the section on Society and Value Chain in this report and our Human Rights Policy.

Bribery/corruption

See our Anti-Corruption and Bribery Policy on our website.

Taxation

See our financial notes relating to tax in this report.

Fair competition

See our Anti-Competitive Behaviour Policy on our website.

Note also that all points under the Minimum Safeguards are included in our due diligence process towards

our suppliers, ensuring compliance with the Minimum Safeguards also in our value chain.

Accounting Policies

The performance disclosure to the EU Taxonomy shows an eligibility and alignment with EU Taxonomy

definitions of sustainable activities for Turnover, CAPEX and OPEX. The Turnover definition of the Del-

egated Act 2021/2178 Annex I coincide with the turnover reported in SalMar's Consolidated Financial

Statements. The CAPEX comprises the additions made in the reporting year, and are broken down as

follows with the relevant references to the financial notes:

(NOK 1,000)

CAPITAL EXPENDITURE

IAS 16

PROPERTY,

PLANT &

EQUIPMENT

IAS 38

INTANGIBLE

ASSETS

IAS 41 AGRI-

CULTURE

IFRS 16 LEASES

RIGHT OF

USE ASSETS SUM CAPEX

Reference to financial notes 3.3 3.1 3.6 3.4

Additions through purchase 2,268,811 339,163 13,863,422 746,626 17,218,022

Additions through business

combination (excl. Goodwill)

0 0 0 0 0

SUM CAPEX 2,268,811 339,163 13,863,422 746,626 17,218,022

The OPEX definition as presented in the Delegated Act 2021/2178 Annex I cannot be derived directly

from SalMar’s financial notes. All CAPEX and OPEX disclosed are of Type A.

Since we only disclose on one Taxonomy-eligible activity – double counting is not relevant and has not

been assessed further. Please see the reporting documents presented in the EU Taxonomy Calculator

template as an attachment to this Annual Report, available on our website.

Sustainability and Corporate Responsibility

Performance Disclosure

The following tables and graphs summarise SalMar’s performance on the EU Taxonomy Reporting for 2023.

Turnover CAPEX OPEX

Non Eligble

Eligble, not AlignedEligble and Aligned

(in million NOK) Turnover CAPEX OPEX

Eligible and Aligned Activity 0 57 2

Eligible, not Aligned Activity 0 302 70

Non-Eligible Activities 28,219 16,858 1,037

Total 28,219 17,218 1,109

Eligible and Aligned Activity 0% 0.3% 0.2%

Total Eligible Activity 0% 2.1% 7.0%

Sustainability and Corporate Responsibility

Salmon Living Lab

SalMar is launching an ambitious innovation and R&D initiative, Salmon Living Lab, calling upon industry

leaders, NGOs, academia, and other people who live by and with the salmon to come together to share

and learn. In addition to bringing partners across the salmon supply chain together, the Salmon Living

Lab will also lead to the building of an innovation and R&D centre which will house various activities

and function as a focal point for knowledge.

In addition to its expertise, SalMar will be supporting the initiative with a strong financial commitment.

One envisions about NOK 500 million to ensure that the project get off on a good start. The first partner

to sign up for the collaboration is the global food corporation Cargill.

The aquaculture industry has invested heavily in technology, now it needs to invest more in biology.

The Salmon Living Lab will lead the way into the future.

“Our aquaculture industry is at a crossroads. We have celebrated

significant achievements in the past. We have succeeded in bringing

large quantity of much sought-after salmon to customers and consumers

worldwide. Now, we must acknowledge that we face greater challenges than

we have done before. We must realize that there are simply too many gaps in

our knowledge. We need to know more about the salmon which is the most

important part of our value chain.”

Gustav Witzøe, Founder and Chairman of the Board

“We believe that bringing together the holistic capabilities of SalMar

and Cargill will drive greater impact in improving animal welfare and

sustainability, ultimately protecting, and aiding further sustainable

growth of this critical industry. There is a need for more collaboration to

tackle the challenges we are currently facing.”

Helene Ziv-Douki, Cargill Aqua Nutrition President

Sustainability and Corporate Responsibility Fish

Fish

At SalMar, the salmon is our captain, and everything we do must be

on the salmon’s terms. A “Passion for Salmon” is the foundation of

SalMar’s entire business. Our goal is to produce sustainable, healthy

and nutritious food for a steadily growing global population. And we

will do so with the salmon in focus.

Fish welfare is paramount for successful fish farming, and SalMar

is actively engaged in developing and implementing initiatives and

procedures to improve fish welfare. We acknowledge that every deci-

sion we make regarding the fish's health also affects the financial,

social, and environmental aspects of the value chain. Fish welfare

exemplifies SalMar's comprehensive approach and highlights the

importance of sustainable aquaculture, which must prioritize the

well-being of the salmon.

Sustainability and Corporate Responsibility Fish

Our KPI Scorecard

The KPI for Norway reflects the results for SalMar and subsidiaries

in Norway. The KPI for Iceland reflect the results of SalMar's Icelan-

dic subsidiary, Arnarlax.

Group Norway Iceland

Target 2023 2022 2021 2023 2022 2021 2023 2022 2021

Survival 12-month rolling survival rate

>97%

within 2030

93% 94% 95% 94% 95% 95% 86% 90% 93%

Antibiotics Grams of active pharmaceutical ingredient (API) / tonne produced 0 0 0 0 0 0 0 0 0 0

Lice Number of observations over the national lice limits 0% 1% 3% 2% 1% 3% 2% NA NA NA

Interaction

with wildlife

Birds – Accidental mortality 0 0.73 0.38 0.44 0.74 0.32 0.47 0.43 0.43 0.17

Birds – Euthanised 0 0.15 0.05 0.15 0.16 0.09 0.16 0 0 0

Marine mammals – Accidental mortality 0 0 0 0 0 0 0 0 0 0

Marine mammals – Euthanised 0 0.01 0 0 0.01

0 0 0 0 0

Fish escapes

No. of incidents 0 3 2 5 3 2 4 0 0 1

No. of escaped fish 0 168 11

81,790

168 11 226 0 0 81,564

Fish feed

Certification of marine ingredients in fish feed

100% 94% 94% 97% 94% 94% 97% 96% 100% 98%

Certification of soya in fish feed

100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

FFDR (Fish meal)

<1.2 0.49 0.46 0.36 0.49 0.47 0.36 0.46 0.34 0.32

FFDR (Fish oil)

<2.52 1.48 1.36 1.63 1.45 1.36 1.64 1.91 1.38 1.56

Biological feed conversion ratio

1.10

within 2030

1.12 1.13 1.14 1.12 1.11 1.13 1.19 1.26 1.30

Certification Share of active sites certified at end of year

100% 99% 100% 99% 100% 100% 100% 83% 100% 83%

1 12-month rolling survival rate measured in accordance with the Global Salmon Initiative’s methodology.

2 Calculated as the number of interactions per active site during the reporting year.

3 A common minke whale made its way into one of our net pens, and the Directorate of Fisheries decided that the safe measure was to euthanise the mammal.

4 Marine ingredients to make fish meal and fish oil, certified in accordance with Marine Trust, MSC or equivalent.

5 Certified in accordance with ProTerra, Europe Soya or equivalent.

6 Calculated based on ASC methodology: https://www.asc-aqua.org/wp-content/uploads/2022/09/ASC-Salmon-Standard-v1.4-Final.pdf

7 Calculated as the total weight of feed fed at sea divided by the gross production at sea – i.e., the kg of feed used to produce one kg of salmon.

8 Sites certified in accordance with GlobalGap, Debio or ASC.

All targets are timebound for the following

calendar year unless otherwise specified.

Sustainability and Corporate Responsibility Fish

Fish Welfare

SalMar’s endeavours in the area of fish welfare build on the “Five

Freedoms of Animal Welfare”. Good fish welfare requires systematic

efforts to ensure that the fish’s welfare is safeguarded by providing

them with optimal conditions throughout their lifecycle. SalMar's Fish

Health and Fish Welfare policy can be found on its website. The policy

states how SalMar works to ensure the highest standards for fish

health and fish welfare at all times, including our cleaner fish. SalMar

also has a separate public policy on responsible slaughtering practices

of our salmon, named Humane/Ethical Killing Policy.

SalMar uses a variety of metrics to measure fish welfare. Among

others, SalMar monitors the salmon's appetite, growth rate, skin health,

and wounds during operations, and oxygen uptake during transport.

All in all, fish welfare is a prerequisite for SalMar’s business and is thus

treated with the utmost importance.

Sustainability and Corporate Responsibility Fish

We strive to increase our fish’s survival rate

In our view, the most reliable indicator of fish welfare is the survival

rate of fish from the time they are transferred to our sea farms until

they are harvested. To measure this rate, we use a 12-month rolling

survival rate, which is measured in absolute numbers and follows the

Global Salmon Initiative's methodology. SalMar considers all lives of

equal value, which is why all survival rates published in the report are

based on number of mortalities rather than biomass.

Over the past few years, SalMar has achieved a survival rate of

between 94% and 96% in Norway. In 2021, we set an ambitious

target of reaching a 97% survival rate by 2025. However, we have

since seen a slight decrease in the survival rate. A major event affect-

ing survival rates in Norway was the jellyfish attack in our Northern

operating regions beginning late 2023. In Iceland, we also experienced

a decrease in the survival rate. This was partly due to sea lice levels

rising above previously seen levels. Our goal is to achieve a survival rate

in Iceland of 95% by 2028 and 97% survival rate in Norway by 2030.

SalMar analyzes seawater samples from around our sea farms as a core

part of our algae management plan. Tests are carried out periodically

and especially if there is suspicion towards potential algae blooms in

the area. Samples are also taken if we see unusual fish behavior and

prior to delousing operations.

We recognize that some of the main causes of mortality are smolt

quality, infectious diseases, and fish handling. In 2023, we made

progress in enhancing smolt quality and fish handling in connection

with delousing treatments. However, we acknowledge that we still

need to improve our management of diseases such as PD, HSMI, ISA,

and CMS, as well as gill health. When disease incidents happen, we

comply with the local authority's protocols and report the incidents

to the Norwegian Food Safety Authority, who lists diseases by cate-

gory considering their potential effect on fish and other animals,

communities and environment.

SalMar with strong results compared to peers

Benchmarking against industry peers is an important part of develop-

ing an understanding of important focus areas and overall peformance.

SalMar's annual survival rate is presented also as a monthly average

survival rate through the year in the table below:

Group

Norway

Iceland

12-month rolling survival rate by GSI methodology 93% 94% 86%

Monthly survival rate

99.4% 99.5% 98.8%

Our survival rate is high compared to peers, but we will continue our

tireless work towards improving our results further.

We promote cleaner fish welfare

SalMar produces in-house cleaner fish for risk-based use to combat

salmon lice in the salmon sea phase, but the number of cleaner fish

used has been reduced over the last years. SalMar finds it only natural

to promote fish welfare also when it comes to cleaner fish. We aim

to maximize cleaner fish survival rates by farming robust cleaner fish

and giving them healthy living conditions inside the net pens. SalMar

uses a dedicated feed for cleaner fish which helps them grow and

stay healthy while carrying out their operations. Furthermore, we use

artificial kelp inside the net pens to give the cleaner fish a familiar

environment where it can eat, hide out, rest and sleep when not eager

at work. SalMar is continuously involved in R&D projects regarding

cleaner fish husbandry, relating to cleaner fish species, size, feed, and

living conditions. Cleaner fish are also included in our Fish Health and

Fish Welfare policy which can be found on our website.

We engage in fish welfare R&D

SalMar is an active part of multiple R&D projects related to fish health

and fish welfare. To name a few, SalMar is involved in the DigiHeart

project with the Norwegian Veterinary Institute and the Norwegian

University of Life Sciences (NMBU) which aims to better understand

underlying causes of heart deformations in salmon, including digital-

ization of cardiac morphology to examine discrepancies.

SalMar is also engaged in the Optismolt pro-

ject with the NMBU to increase the knowl-

edge on the salmon's smoltification process

and how input factors like temperature, light,

and salinity affects fish welfare.

We prevent antibiotic resistance

In 2023, SalMar did not use antibiotics, nei-

ther in Norway, nor in Iceland. This shows

that the com pany's commitment to avoiding the use of antibiotics is

ongoing. Important steps to eliminate the use of antibiotics include

the vaccination of fish, ensuring good day-to-day fish welfare and

upholding the zoning boundaries between generations of fish to

minimise the spread of bacterial infection. SalMar engages with public

policy officials and civil organisations to ensure that a responsible

approach to the use of antibiotics is broadly implemented.

Resistance to antibiotics is a growing problem worldwide. To prevent

the development of resistance it is important that all food producers

do what they can to keep the use of antibiotics as low as possi

ble. The Norwegian monitoring programme for antibiotic resistance

(NORM-VET

) concludes once again that the use of antibiotics in the

production of Norwegian salmon is extremely low compared to all

other animal protein sources.

Antibiotics

usage 2023

Monthly mortality rate calculated as number of mortalities in the sea phase

in the last 12 months / (number of mortalities the sea phase in the last 12

months + number of individuals harvested in the last 12 months + number

of individuals culled in the sea phase + closing number at sea in the last

month) / 12.

Source: https://www.vetinst.no/overvaking/antibiotikaresistens-norm-vet

Sustainability and Corporate Responsibility Fish

The fish have plenty of space

As regulated by the current legislation in both Norway and Iceland,

maximum density is 25 kg/m

(2.5%) for conventional salmon and

10 kg/m

(1%) for organic salmon. SalMar complies with this in all

geographies, and on average the density in each individual net pen is

significantly lower than the requirement. This means that the salmon

always has more than enough space to freely move, which is an

important prerequisite for

good fish welfare. The

average stocking density

in 2023 was 8.45 kg/m3

in Norway and 3.74 kg/m3

in Iceland. As a fish welfare

measure, we have decided

to set a maximum limit of

13 kg/m3 in the winter

season in Iceland.

We keep the number of sea lice down

Sea lice are a naturally occurring parasite in seawater. As fish farmers,

it is our responsibility to ensure that our salmon can coexist with the

lice. The presence of sea lice can have negative effects on the quality

of the salmon's flesh and in severe cases can lead to disease and

death. To prevent this, we take preventative measures to minimise

lice numbers and use treatment regimes that are gentle to the fish

and the environment.

Our goal of staying within the limits set by regulations remains

unchanged, and in 2023, SalMar worked systematically to control

sea lice at our sites sites in Norway. This resulted in a significant

improvement in the share of sea lice observations above national

limits, which decreased from 3.3% in 2022 to 0.9% in 2023.

In Norway the current regulation stipulates a maximum permitted

number of lice. As a rule, the number is capped at 0.5 adult female

lice per fish. However, for certain types of licence and in certain

areas, the lice threshold is 0.2. All fish farmers report lice numbers to

the authorities weekly using the government’s online portal Altinn.

The updated status from all our farming sites is publicly available at

www.barentswatch.no.

In Iceland, the procedures with the national authorities are different

to Norway regarding delousing operations. When the lice levels get

close to 0.5 lice per salmon, companies can apply to the Icelandic

Food Authority (MAST) for a delousing operation. MAST then engages

with relevant third parties to evaluate whether to allow a delousing

operation. Since there is no lice limit set by law in Iceland and the pro-

cedures for delousing is different, Arnarlax is not included in this KPI.

The main strategy for reducing the number of treatments is through

preventive measures, such as lice skirts, reduced cycle time and fal-

lowing, as well as risk-based use of cleaner fish produced in-house.

In addition, SalMar has established its own internal capacity for

non-medicinal delousing. We are working systematically to reduce

the mortality rate from these operations. This includes strong risk

assessments for the treatment process and performing evaluations

after treatment has been completed. All personnel handling our fish

have been sufficiently trained, and follow our handling policy and

procedures. Fish welfare is our main focus, and new tools are being

developed to improve these work processes.

Throughout 2023, SalMar made ongoing efforts to enhance our

technical equipment to make it more gentle on the fish and reduce the

need for fish handling. We also focused on developing effective tools,

such as indicators, that can aid us in better predicting the status of the

fish's welfare. These efforts will continue into 2024. Additionally, we

have made continued investments to increase our treatment capacity.

SalMar introduced the innovative technology of lice lasers in 2022,

where advanced optics identify sea lice on the salmon and remove

them using a laser pulse. SalMar will continue to invest further in

lasers in 2024. Furthermore, SalMar also introduced the OptoScale

optic solution for increased insight and monitoring of fish welfare

indicators, weight and lice counts. This has also been a progressive

initiative that SalMar will continue to realize in 2024.

2021

01.01

0.1

0.2

0.3

31.12

2022 2023

97.5% water

2.5% fish

Medication

zero emissions

Active operations

Non-medicinal treatments,

lasers, and harvesting out

Cleaner ﬁsh

Risk-based use of cleaner

ﬁsh produced in-house

Preventive measures

Lice skirts, cycle time, fallowing, operating

routines, collaboration and genetics

Average no. of adult female lice

per week at SalMar in Norway

Visualisation of

SalMar’s anti-

lice strategy:

Sustainability and Corporate Responsibility Fish

We prevent and limit fish escapes

SalMar has a zero-vision with respect to fish escapes and takes all such

incidents seriously. In 2023, SalMar had 3 reported incidents in Norway

and none in Iceland. A total of 168

fish escaped from our facilities in

Norway and Iceland, which corre-

sponds to less than 0.0001% of all

the fish SalMar had at its sea farms.

The authorities were informed of

the three incidents at an early stage

and non-conformance analyses

were performed. Relevant remedial

measures were then implemented as per established procedures,

including recapturing all of the escaped salmon from one of the

incidents. SalMar continues to strive every day to prevent fish from

escaping. This means focusing on day-to-day routines for monitor-

ing and checking the technical equipment, as well as procedures for

operations involving the handling of fish. In addition, we continue to

collaborate with suppliers and research institutes on the development

of more secure equipment.

SalMar recognizes that damage to net pens is a common cause of

fish escapes in the industry. Therefore, in recent years, we have col-

laborated with our net pen supplier to test different types of pens

to find one that offers better protection against escapes. We have

found a type of pen that not only provides enhanced protection but

also delivers additional environmental benefits. Consequently, SalMar

has launched an investment program to reduce incidents related to our

net pens, even though our current pens are certified and are subject

to strict controls. The number of escape incidents were halved from

2020 to 2021 and more than halved again from 2021 to 2022.

The decrease in incidents in the last years have come despite increas-

ing production, making these improvements extra demanding. No

financial costs arising from fish escapes were recorded in 2023. We

remain committed to continually improving our net pens to ensure that

we meet our targets for fish welfare and sustainability and continue

to target zero escapes.

Partnership for wild salmon

SalMar is committed to preserving wild salmon populations and ensur-

ing that aquaculture can coexist with those who depend on wild

salmon fishing in our operating areas. We are engaged in several

biodiversity initiatives that aim to monitor wild salmon populations

and track any escaped farmed salmon. For years, we have partnered

with research institutes to monitor Norwegian rivers for escaped

farmed salmon.

Over several years, SalMar has been a partner in monitoring the fol-

lowing rivers around Trondheimsfjord: Gaula, Nidelva, Orkla, Skauga,

Steinkjerelva, Stjørdalselva, Verdalselva, Figga, Norddalselva and Stord-

alselva. Scale samples from all fish caught in the rivers are sent for

analysis to the Norwegian Veterinary Institute, to determine whether

there are farmed salmon in the wild breeding population. 0.7% of the

salmon tested in 2023 were farmed salmon.

In Troms, we participate in the Wild Salmon Industry Collaboration

Project, which aims to monitor the status of rivers and implement

measures to increase the number of wild salmon in the area. The pro-

ject covers the following rivers and watercourses: Tennelvvassdraget,

Vardnesvassdraget, Ånderelva, Grasmyrvassdraget, Brøstadelva, Ross-

fjordvassdraget, Skøelva, Salangselva and Breivikelva. We also work

closely with Gramyrvassdraget in Senja and Målselv for monitoring

and emergency preparedness.

In Finnmark, SalMar participates in such projects for counting farmed

salmon in Altaelva and Repparfjordelva, where the level of farmed

salmon detected was 0 and 0.5% respectively. Furthermore, we

collaborate with NINA, Ferskvannsbiologen, and Skandinavisk Mil-

jøundersøkelser AS for advice and practical initiatives related to wild

salmon conservation.

Along with the Norwegian Seafood Federation and other industry

players, SalMar is also running a project relating to the tracing of

escaped farmed salmon. This will be achieved through a combination

of geoelement markers (traces in fish scales) and DNA (tracing of the

parent fish’s DNA). This will make it possible to trace escaped farmed

fish back to their owner. Efforts to achieve this capability have been

underway for several years. OURO

is a joint industry initiative which

was established in 2015 in response to statutory regulations requiring

action to reduce the genetic impact of farmed salmon on wild fish

stocks. The OURO initiative’s activities are funded by SalMar and other

players from the aquaculture industry.

We impact wildlife as little as possible

For SalMar, it is important to have as little impact on wildlife as possible,

and we are working actively to prevent this. However, our presence will

sometimes affect other animals. In 2023, we experienced an increase

in the number of incidents in Norway. SalMar have, as a response,

established an internal taskforce to investigate best practice and

aim for using equipment at our sites that minimises the risk of harm

to wildlife. We will continue working to reduce the number of such

incidents in 2024, as we target no interactions with wildlife.

Share of escaped

salmon for the Group

<0.0001%

http://utfisking.no

Sustainability and Corporate Responsibility Fish

Sustainable Feed

Fish feed must have the correct nutritional content, consistency and

taste. But for SalMar, it is equally important that the feed is gentle

on the environment. We require our feed suppliers to ensure that the

ingredients they use are certified, so we can confidently sell a product

that has been sustainably produced. This means that the feed ingre-

dients are not genetically modified, have not been produced in areas

threatened by deforestation and do not depend on endangered fish

stocks. See SalMar’s Deforestation Policy at salmar.no.

Sustainable feed ingredients

SalMar uses an all-round feed that optimises production and pro

motes good fish health. In other words, a high-value salmon feed

that ensures good growth, a low feed factor and meets the salm-

on's nutritional needs. In 2023, around 347,000 tonnes of dry feed

pellets were used in SalMar’s salmon farming and smolt operations

in Norway, and 21,000 tonnes in Iceland. In the pie chart below,

a typical pellet is shown by ingredients. The sum of these ingredients

makes up a healthy feed for our salmon that optimizes fish health,

welfare and growth.

SalMar has a target for 2024 to increase its use of trimmings and

by-products in the feed, as an important step in our transition to cir-

cular economies. In 2023, 27% of SalMar’s marine ingredients derived

from trimmings. More than 60% of the feed for organic salmon was

derived from trimmings. SalMar also targets to increase the inclusion

of novel feed ingredients.

SalMar always seeks to apply clear and comparable KPIs and tar-

gets. Because of varying definition of "novel feed ingredients" in the

industry, SalMar does not wish to set a public numeric target for the

inclusion of novel feed ingredients in our feed. However, we stay true

to our commitment towards always choosing the best feed composi-

tion for our fish, the climate, and the environment. This involves the

increased inclusion of innovative, novel, low-emission feed ingredients

across operations, as informed by SalMar's risk assessments.

SalMar not only monitors the ingredients it uses, but also evaluates the

nutritional value of the feed utilized in its hatcheries and sea farms.

To verify the quality, SalMar examines the fat, protein, phosphorus,

and fiber content of the feed. Moreover, SalMar conducts regular

inspections on the physical quality of the feed upon receipt to identify

any instances of non-conformances.

How we safeguard our fish feed

• All fish feed used by SalMar is required to be certified.

• All fish feed used is deforestation-free and not

genetically modified.

• SalMar has dedicated personnel who work with fish feed

and its nutritional content.

• Continuous improvement through employee

training and R&D.

• SalMar has chosen to maintain a strategic partnership

with our main feed suppliers (Cargill Aqua Nutrition Norge

and Skretting), with whom we work to include sustainable

ingredients in the feed we use, improve agricultural

practices and nutrient management.

• SalMar is involved in several R&D projects investigating the

use of novel feed ingredients, such as algae, insect meal,

kelp, salmon oil, seafood trimmings and excess raw material

from processing.

• SalMar recognizes that soil health and nutrient

management is a global challenge in agriculture and require

our feed suppliers to manage soil health and perform

nutrient management in a responsible and sustainable

manner. We engage with our suppliers to discuss ways

of reducing nutrient spill, and make sure that we hold

ourselves accountable.

Carbohydrates – 10%

Wheat, corn, etc.

Microingredients – 3%

Vitamins, minerals, etc.

Vegetable oil – 23%

Rapeseed oil, lineseed oil etc.

Marine proteins – 12%

Fish meal, trimmings etc.

Vegetable protein – 40%

Soy, guar meal, etc.

Typical

pellet

ingredients

Marine oils – 11%

Fish oil, algae oil etc.

Sustainability and Corporate Responsibility Fish

Sustainable Feed Sourcing

Marine ingredients

Marine ingredients currently make up approximately 23% of the

fish feed, where 12% was fish meal and 10% was fish oil. 27% of

the fish meal came from trimmings, and 26% of the fish oil came

from trimmings. SalMar requires all its feed suppliers to purchase

marine ingredients that are certified in accordance with the Marine

Trust, MSC, or equivalent. This is to ensure that the fish stocks from

which they are drawn are sustainable. In 2023, 94% of the marine

ingredients used by our feed suppliers came from certified fisheries.

This is a small improvement from 2022, but still some way off our

target. The uncertified ingredients were mainly due to a weak supply

of marine ingredients in the market and were largely derived from

trimmings and legal by-catch. In 2023, the share of uncertified ingre-

dients also was negatively impacted by some of the Danish fisheries

transitioning from MSC to MarinTrust certification, leaving a period

of no certification status.

Through due diligence and continuous dialogue, we ensure that our

feed suppliers are working purposefully to ensure sustainable feed

sourcing. Our feed suppliers are working on the ground and at sea

in several parts of the world, to ensure that fisheries are enrolled in

Fishery Improvement Projects. Instead of simply changing the supply

chain, leaving the issue unresolved, this is a targeted effort to improve

the fisheries around the world. SalMar will work purposefully with its

suppliers to reach its target of 100% certified ingredients in 2024.

As a measure of feed sustainability, we use the Fish Forage Depend-

ency Ratio (FFDR). This quantifies our dependence on wild fish stocks

as raw materials in our feed. This is done by assessing the volume of

live fish that is required to make the amount of fish meal or fish oil

needed to produce one unit of farmed salmon. The lower the FFDR

we can achieve, the more salmon we can produce based on a globally

limited supply of marine raw materials.

According to the ASC standard, the fish feed is withing sustainable

limits if its FFDRm is less than 1.2 and its FFDRo is less than 2.52.

In 2023, SalMar’s Norwegian and Icelandic operations both achieved

values well below this level. By volume, the largest sources of marine

ingredients in our feed were blue whiting and herring. See the feed

suppliers’ own sustainability reports for further details

1 Skretting: https://www.skretting.com/en/sustainability/

sustainability-reporting/

Cargill Aqua Nutrition: https://www.cargill.com/sustainability/aquaculture/

aquaculture-sustainability-reporting

Sustainability and Corporate Responsibility Fish

Vegetable ingredients

Vegetable raw materials have become an important ingredient in fish

feed. Vegetable-based proteins make up about 39% of the feed and

vegetable oil make up about 22%. Responsible agriculture is therefore

an important part of SalMar's value chain. SalMar ensures sustainable

agricultural practices through partnership with feed farmers and sup

pliers, and through certifications. The sourcing of vegetable raw mate-

rials for salmon feed, especially soy, has gained attention due to risks

of deforestation and biodiversity

loss. A prerequisite for all purchased

soy by SalMar is that it is certified by

ProTerra or its European equivalent

Europe Soya. To reach the certifica-

tion, feed farmers must comply with

ten core principles as presented to

the right. The soy purchased from

Brazil in 2023 originated from the

regions Minas Gerais, Paraná, Mato

Grosso, and Goiás

Through these principles, SalMar’s due diligence processes and our

clear policies towards only purchasing certified feed ingredients, we

ensure that our feed is sourced responsibly, with responsible water

management, pollution control, pesticide control, sustainable nutri-

ent management, good working conditions and rights for workers,

and traceability on our feed resources. SalMar requires all soy to be

traceable to region within the country sourced from, both for direct

and indirect suppliers.

Deforestation

and conversion

free feed

100%

6: Pollution and waste management

This principle demands responsible management of wastes and pollutant

materials, and control of atmospheric pollution.

7: Water management

This principle requires farmers to conserve quantity and quality of

existing natural water resources and implement best practices for

water management.

8: Greenhouse gases and energy management

This principle requires organisations to adopt practices to minimise the

use of energy from non-renewable sources and to derive an increasing

proportion of their energy from renewable sources such as solar and

wind, or from local, recycled materials. Also, a greenhouse gas emission

inventory and reduction targets should be made.

9: Adoption of good agricultural practices

This principle requires farmers to use pesticides responsibly, and to with-

stand from the use of pesticides listed in WHO Classes Ia, Ib and II lists,

Rotterdam Convention and Stockholm Convention, as well as forbidden

by local or national law. Farmers are also required to apply methods for

agrochemicals use, including pesticide, that minimise harm to human

health, wildlife, plant biodiversity, and water and air quality. Further,

farmers must apply a suitable programme of pesticide rotation designed

to minimise development of pest resistance and improves soil quality.

Handling, storage, transport and disposal must be done according to

manufacturer's instructions and legal requirements.

10: Traceability and Chain of Custody

The final principle requires all records related to the Chain of Custody

System to be kept for five years and have sufficient documentation to

present traceability.

1: Compliance with law, international conventions, and the

ProTerra Standard

This principle demands that organisations implement procedures to

assure consistent compliance with laws and the Proterra standard and

document compliance for at least five years.

2: Human rights and responsible labour policies and practices

This principle demands the absence of slave and forced labour, child

labour, and coercive disciplinary or control methods, as well as working

hours in accordance with law and trade organisations. It also demands

fair wages, equal opportunities and treatment for workers including

equal pay, professional training and development, freedom for workers

to organise, join and form associations, worker’s rights, right to parental

leave, health and safety, and living conditions.

3: Responsible relations with workers and community

This principle requires the establishment and proper documentation of

an effective and timely system of communication with all workers and

with the local communities, including a system to receive, investigate and

respond to all complaints from these parties. Also, it demands that the

land use does not impair the rights of traditional other users.

4: Biodiversity conservation, effective environmental

management and environmental services

This principle sets the clear no-go policy on deforestation and conversion

of native vegetation. Furthermore, it requires companies to maintain and

enrich biodiversity, hereunder “organisations shall identify and maintain

valuable biodiversity within their areas and shall, with the involvement

of an external expert, restore areas of natural vegetation around bodies

of water and on steep slopes and hills, and other sensitive parts of the

ecosystem.” It also demands a social and environmental impact assess-

ment and management plan

5: No use of Genetically Modified Organisms (GMOs)

This principle states that Genetically modified organisms (GMOs) and

their byproducts are prohibited. This includes technology that can be

used to edit genes within organisms such as CRISPR/Cas9. Furthermore,

it requires companies to have a Non-GMO control system to ensure com

pliance and no contamination of GMOs from external sources.

10 core principles of the ProTerra Standard

Sustainability and Corporate Responsibility Fish

Traceability and availability of feed resources

At SalMar, we ensure full traceability of the origin of all feed ingredients used in our fish feed, including

those sourced through both direct and indirect suppliers. To ensure sustainability throughout our value

chain, we conduct audits on our feed suppliers and verify that all ingredients used in our fish feed come

from sustainable sources.

SalMar conducts regular risk assessments to identify how the availability of our feed ingredients impacts

our production and how it may influence our production going forward. Feed is the most expensive

operating expense for SalMar, and thus predictability is key when it comes to feed costs. In the last few

years, we have seen how the access to feed resources may be affected by global events like political

conflict and global warming. It remains important for SalMar to collaborate with our feed suppliers in

continuously assessing the availability of the necessary feed resources within our feed, while also

exploring alternative feed ingredients. This way, we can increase predictability while gaining insight

into the most urgent areas for R&D investments.

Novel feed ingredients and feed innovation

SalMar actively explores and invests in projects concerning novel feed ingredients in collaboration

with our feed suppliers. To minimize the footprint of our feed ingredients and as a measure to reduce

nutrient spill from agriculture, SalMar continuously test and evaluate novel and local feed ingredients

such as algae, insect meal, kelp, salmon oil, seafood trimmings and excess raw material from processing.

SalMar are prepared to apply sustainable feed ingredients across operations, as they become established

through R&D testing and prove themselves suitable for our salmon.

Through the partnership platform Råvareløftet, SalMar's feed suppliers engage to develop new, innovative

feed ingredients and analyze the barriers towards implementing them in large scale. The partnership

focuses especially on local, low-carbon ingredients that can reduce GHG emissions, water use, improve

circularity and enhance food security. Our feed suppliers are also working on ground to establish and

increase the modernization of agriculture, specifically projects relating to regenerative agriculture. This

promotes biodiversity and soil health.

Sustainability and Corporate Responsibility Fish

We ensure efficient feed utilisation

At SalMar, we recognize the importance of not only the nutritional

value, consistency, and taste of our fish feed but also the correct

dosing to promote effective feed utilization and maintain fish health.

Our continuous monitoring of key performance indicators such as

effective feed utilisation helps us achieve several benefits, including

optimal growth, reduced environmental

emissions, good fish welfare, increased

disease resistance, low mortality, less

size variations, increased yield at har-

vest, and high-quality fish.

As such, the feed conversion ratio

(bFCR) is a vital sustainability KPI that

we prioritize. In 2023, SalMar decided

to rather disclose the biological feed conversion ratio (bFCR) than

the economic feed conversion ratio (eFCR). The difference is that

the bFCR considers the feed used per gross growth at sea, while

the eFCR considers the net growth at sea. We made this change

because we want to focus on the essence of the KPI, which is how

we can achieve optimal feeding and feed compositions that is best

suited for our salmon. The bFCR is unaffected by the survival rate, so

with the bFCR we can keep the survival rate and the feed conversion

separate rather than having two central KPIs influence each other

directly. Although not previously publicly disclosed, the bFCR has

always been an important KPI internally, and the historic data is strong.

The disclosed values for bFCR were verified through the third-party

verification process.

In 2023, SalMar saw a decrease in bFCR on the Group level from 1.13

in 2022 to 1.12 in 2023. The improvement comes due to significant

focus on optimal feeding and high-energy feed. The improvement was

greatest in Iceland where a significant reduction from 1.26 to 1.19

was achieved. We target a bFCR of 1.10 within 2030.

Salmon is a very efficient protein converter. SalMar’s Protein Efficiency

Ratio (PER) calculated as the gain in animal weight (kg) per protein

consumed (kg) was 1.72 in 2023. The results are mostly affected by

the feed conversion ratio and the protein content in the feed.

To achieve optimal feeding, we tailor feed to the salmon's appetite in

each net pen, monitoring feeding using technologies such as underwa-

ter CCTV cameras that show where the fish are located in the water

column and monitor their appetite. Our focus on optimizing feeding

during the first 12 weeks at sea, providing the greatest amount of

feed availability during this period, helps raise healthy and robust fish.

In 2023, SalMar remained committed to the advancement of its feed-

ing centers that are responsible for remotely controlling the feeding

of its fish stocks. This has been achieved by bringing together highly

skilled staff in a single location, thereby facilitating the development

of a central "control room" and enabling the implementation of new

routines and continuous learning. SalMar presently operates several

feeding centers, each of which remotely feeds several sites from their

respective control rooms. These centers are located in Senja, Fosen,

Smøla, and Rørvik in Norway, with an additional one situated in Iceland.

The remote feeding scheme has increased our focus on feeding and

is considered a good environmental measure in terms of providing

strong growth, a fast turnover and effective MAB and site utilisation.

It also provides opportunities for increased focus on the competence

of those employees who perform one of the most important tasks

at SalMar. Facilitating their access to real-time data and customising

optimal reporting and support tools are areas the company is contin-

uing to work on.

bFCR - Group

1.12

Sustainability and Corporate Responsibility Fish

Safe and Healthy Food

SalMar produces healthy food, which is easy to prepare and tastes

delicious. SalMar’s products are based on first-class, sustainable raw

materials, and the product quality is maintained through the whole

value chain until the salmon reaches the customer.

How we provide safe and healthy food to all our customers

• Local processing makes it possible for SalMar to offer

a wide range of first-class, fresh, frozen and organic

salmon products.

• We ensure good fish welfare and the correct nutritional

content in the fish feed we use, which provides healthy

food for human consumption.

• Our value chain is certified from roe to plate.

• Employee training with regards to routines and procedures

is required to ensure the high quality of SalMar's products

• We perform regular internal audits, and welcome audits

and inspections by the regulatory authorities, certification

agencies and customers.

For more insight into how SalMar ensures that all food is safe and

healthy for its customers, see our Food Safety Policy on our webpage.

Sustainability and Corporate Responsibility Fish

SalMar’s whole value chain is certified from

roe to plate

We strive to conduct ourselves with honesty, propriety, and trustwor-

thiness, and take pride in being transparent about our operations. To

this end, we have obtained certification in accordance with the most

stringent requirements and guidelines. Our compliance with third-party

standards, as well as those set by our customers, is verified through

auditing of our operations. In addition to this, our operations are also

subject to oversight by government and regulatory authorities.

It is our responsibility to ensure that our

customers feel safe when they eat salmon

from SalMar and know that it has a healthy

nutritional content. For this reason, we are

certified in accordance with the strictest

requirements and guidelines for sustain-

able aquaculture, including the Aquacul-

ture Stewardship Council (ASC), Debio, and

Global GAP

1 https://www.globalgap.org/

All our sea sites in Norway are certified in accordance with Global

GAP

. In Norway, 61% of our sea sites are ASC-certified and increase

from 57% in 2022. Furthermore, 8% of our sea sites are certified by

Debio

for responsible organic salmon production.

In Iceland, we chose to revoke one of our ASC certifications during

2023, making the certification percentage 83% at end of year. How-

ever, all the salmon harvested in 2023 originated 100% from certified

sites. We are working towards all sites being certified in 2024.

The Aquaculture Stewardship Council (ASC) is an independent, inter-

national non-profit organisation, which established the world’s most

stringent sustainability standard in June 2012. The mission of the ASC

Standard is to bring aquaculture one step closer to the sustainable,

environmentally and socially responsible production of salmon. This

is achieved through effective market mechanisms that create value

along the entire value chain. By choosing ASC-certified salmon, con-

sumers can be assured that they are buying salmon from a respon-

sible farmer.

With more than 400 auditing criteria within seven main categories,

the ASC Standard is difficult to reach and to retain. It demands sub-

stantial resources with respect to documentation and reporting,

before, during and after certification. Furthermore, SalMar has been

certified in accordance with the ASC’s Chain of Custody scheme.

Openness regarding our performance is a key aspect of the standard.

Further details can be found on our website www.salmar.no, and

the ASC’s website www.asc-aqua.org. Both the Global GAP and ASC

standards have requirements for proper HSE practices, making these

standards important certifications on Health and Safety for SalMar.

2 https://debio.no/english/

Global

G.A.P.

Debio KRAV ASC

Kosher

BRCGS

IFS

Whole value chain Harvesting/processing

Share of

harvest from

certified sites

(ASC, Debio and/or

Global GAP)

100%

Sustainability and Corporate Responsibility Fish

Salmon is a healthy and delicious food

Salmon contains a number of nutrients which makes it an important

part of a balanced diet. Salmon is a healthy and delicious food. It is

one of the most rigorously investigated foodstuffs and is perfectly

safe to eat.

The World Health Organisation (WHO) has published a detailed report

on both the risks and benefits of eating salmon. The report concludes

that eating oily fish, like salmon, reduces the risk of cardiovascular

disease. It is the products’ fat composition, with a high content of the

omega-3 fatty acids EPA and DHA, but also vitamin D, selenium and

easily digestible proteins, which contribute to this health benefit. The

report warns of higher human mortality rates if too little seafood is

eaten. The biggest challenge with respect to seafood consumption

remains the fact that people in general eat too little of the important

nutrients provided by fish. One salmon meal a week (150g) has proved

sufficient to cover the body’s recommended intake of the healthy

fatty acids EPA/DHA.

The Norwegian Scientific Committee for Food Safety (VKM) makes

recommendations to the Norwegian Food Safety Authority. The

VKM has concluded that it is well documented that oily fish protects

against cardiovascular disease and has a positive impact on the neural

development of babies, both before and after birth. Furthermore, they

conclude that the positive effects of eating seafood far outweigh any

potentially negative impact.

Sustainability and Corporate Responsibility Fish

When you buy salmon from SalMar, you can be sure

that it is safe to eat

SalMar’s production is subject to Norwegian and Icelandic regulations

for food production, and our facilities are regularly inspected by the

Norwegian Food Safety Authority (NFSA) and the Icelandic Food

and Veterinary Authority (MAST). In addition, the Group has its own

sampling programme, under which feed and finished products are

analysed and tested for a number of factors. The NFSA’s monitor-

ing, performed by the National Institute of Nutrition and Seafood

Research (NIFES), shows very little foreign matter in farmed fish,

and no samples were found to exceed threshold values in the most

recently published reports. For further details regarding the nutritional

content and status with respect to contaminants, etc, in Norwegian

seafood, please visit the Seafood Data section on NIFES’s website

or search the Food Composition Table

Production is organised such that the demands of different stand-

ards and customers are met. We perform regular internal audits, and

welcome the public authorities, certification agencies and customers

to carry out external audits and inspections.

In 2023 SalMar performed 356 internal audits and safety inspections,

this is 104 more than in 2022. In addition, 289 audits from external-

parties were conducted, which is 46 more than in 2022.

Food safety and the regulations relating thereto are taken very seri-

ously. In 2023, there were no such incidents of product recalls.

SalMar has defined routines for the follow-up of customer complaints,

and the Group has informed its customers of how they should proceed

if a product they have bought does not meet their expectations. All

products can be traced back through the whole value chain, and a well-

1 https://sjomatdata.nifes.no/#search/

2 www.matvaretabellen.no

trained team is on hand to deal with any complaints from consumers.

The complaints handling process is documented in a dedicated module

in our quality system and provides managers with an overview of the

current status.

SalMar is BRCGS-certified, which is a part of the GFSI standard. We

require our relevant suppliers to hold the same level of certification

when engaging in food safety related matters.

Pre-rigor filet

SalMar provides fresh and frozen pre-rigor fillets to its customers. The

company's emphasis on pre-rigor filleting is an important strategy for

reducing energy consumption, minimizing transport-related emissions,

utilizing 100% of the raw material, and creating local employment

opportunities.

Pre-rigor filleting means that the fish is harvested and filleted the

same day, before the fish goes into rigor mortis. This processing

enables delivery to the market 2–6 days earlier than has been the

norm. This way of handling fish has a number of advantages:

• Fresher fish to the customer

• Firmer muscle texture, better colour and lower drip loss

• Longer shelf-life in the market

• No need to store and mature the fish before

filleting and boning

Organic salmon

SalMar is one of the world’s largest producers of organically farmed

salmon. Organic salmon is supplied all year round, and production is

vertically integrated from the broodfish and roe down to the finished

processed products. To be defined as organic, it must have been pro-

duced in compliance with the EU’s directives and be approved by Debio.

Local processing means that we can deliver a wide variety of first-class

fresh and frozen organic salmon products. SalMar supplies both pre-

and post-rigor organic salmon. A high content of marine oils means

that this salmon is an exceptionally good source of EPA and DHA.

Sashimi quality

Since 2011, SalMar has produced sashimi-quality fish. Every single

salmon is handpicked, and only the best boneless pieces of salmon

are used. The ready to eat fillets are packed within 2 hours to ensure

maximum freshness and taste.

The objective is to offer a salmon product that maintains the same

quality and taste as it had on the day it was caught right up until its

use-by date. To maintain this level of quality, a unique packing, trans-

port and refrigeration process is used. Our sashimi-quality products

are transported in recycled cardboard boxes that are chilled using dry

ice, which ensures optimal temperature control.

Sustainability and Corporate Responsibility Environment & Technology

Environment

& Technology

SalMar operates under the fundamental principle of having a minimal

environmental impact in the areas in which we operate. While food

production is a major contributor to global greenhouse gas emissions,

the farming of salmon is considered one of the most environmentally

friendly methods of producing food. At SalMar, we strive to lead the

development of a more sustainable aquaculture industry by protecting

our oceans, reducing energy consumption, and minimizing greenhouse

gas emissions.

Salmon is considered one of the most sustainable sources of animal

protein due to its low carbon emissions, low water consumption, and

small area requirement. However, there is still much to learn about

sustainable practices. By pursuing new knowledge and innovation,

we can protect our natural resources for future generations while still

meeting the growing demand for food worldwide. SalMar is committed

to driving this development forward. Our Environmental Practices

Policy, along with 17 other ESG-related policies, can be found on

our website.

Sustainability and Corporate Responsibility Environment & Technology

Group Norway Iceland

Target 2023 2022 2021 2023 2022 2021 2023 2022 2021

Greenhouse

gas (GHG)

emissions

Scope 1 + 2 (1000 tCO

42% reduction from

2020 to 2030

30.8 32.1 32.7 28.6 30.1 30.5 2.2 2.1 2.2

Intensity Scope 1+2

(kgCO

e/kg produced)

0.10 0.11 0.11 0.10 0.11 0.11 0.13 0.10 0.13

Scope 3 (1000 tCO

e) 1,305 1,244 1,422 1,245 1,172 1,354 60 72 68

Intensity Scope 3

(kgCO

e/kg produced)

4.2 4.4 4.7 4.3 4.5 4.7 3.6 3.4 4.0

Scope 1+2+3 (1000 tCO

e) 1,336 1,276 1,455 1,273 1,202 1,385 62 74 70

Intensity Scope 1+2+3

(kgCO

e/kg produced)

4.3 4.5 4.8 4.3 4.6 4.8 3.7 3.5 4.1

Electrical/

hybrid

solutions

Farming sites supplied by onshore

electrical power or hybrid solutions

100% 65% 55% 38% 67% 59% 41% 33% 0% 0%

Secondary

processing

Share of secondary processing 40% within 2030 36 % 42 % 45 % 36 % 42 % 45 % NA NA NA

Site

environment

B-analysis benthic score ≤ 2 100% 89% 92% 83% 89% 91% 88% 100% 100% 50%

Freshwater

use

Withdrawal (million m

)

20% reduction from

2022 to 2030

59 63 57 39 46 51 20 16 6

Intensity (liters per kg produced) 190 220 186 133 171 178 1,183 779 325

Water risk

& scarcity

Operational areas with low overall water

risk and low water scarcity

100% 100% 100% 100% 100% 100% 100% 100 % 100 % 100 %

Smolt from

RAS

Share of smolt from RAS facilities 100% 89% 89% 79% 96% 97% 89% 0 % 0 % 0 %

1 Targets verified by the Science Based Targets Initiative and aligned with the 1.5°C target set by the United Nations.

2 SalMar’s freshwater withdrawal equals SalMar’s freshwater consumption and discharge. No water is withdrawn and stored of significant quantities.

3 https://www.wri.org/aqueduct

Our KPI Scorecard

Full insights into our greenhouse gas emissions for every year back

to base year 2020 can be found later in this chapter.

All targets are timebound for the following calendar year unless

otherwise specified.

Following the acquisitions of NTS, NRS and SalmoNor i 2022, our

GHG emissions have been recalculated back to base year 2020.

Sustainability and Corporate Responsibility Environment & Technology

Greenhouse Gas Emissions

The reduction of global greenhouse gas emissions is a pressing challenge, and SalMar aspires to be

a prominent example for other companies worldwide. Salmon farming serves as a low-carbon alterna-

tive for food production. A study conducted by SINTEF Fisheries and Aquaculture and the Institutet

för Livsmedel och Bioteknik in Sweden (SIK) has confirmed that salmon production is significantly more

climate-friendly than pork and beef production. The study found that the carbon equivalent contribution

of 1 kg of farmed salmon is only half that of 1 kg of pork, and only

one-seventh of that of 1 kg of beef. Nonetheless, SalMar recognizes

that simply asserting the climate benefits of salmon farming is not

enough. We aspire to lead the way in our industry and continue to

develop sustainable practices to ensure our operations remain envi-

ronmentally responsible.

SalMar has pledged to reduce its greenhouse

gas emissions

To demonstrate our genuine commitment to reducing greenhouse

gas emissions, SalMar recognized the importance of establishing

a GHG inventory of the highest quality. As such, we engaged with the

Science Based Targets initiative (SBTi) towards the end of 2021 to align our GHG inventory with the

Greenhouse Gas Protocol. Through this process, we also revised our existing GHG reduction targets to

align with science-based targets that are consistent with the United Nations' 1.5 °C target. This ensures

that our GHG reduction efforts are aligned with global scientific consensus on what is required to limit

global warming to a manageable level. Our targets are:

Scope 1 and 2 absolute emissions: At least 42% reduction from 2020 to 2030

Scope 3 absolute emissions: At least 42% reduction from 2020 to 2030

The target on Scope 1 and 2 emissions means that SalMar must work purposefully towards reducing

greenhouse gas emissions from its own operations. This is done by limiting our dependency on fossil

fuels and ensuring that all the electrical power we use comes from renewable energy sources.

The Scope 3 target means that SalMar must collaborate with its value chain to ensure that all operations

both prior and subsequent to our own operations are done in a carbon efficient manner. This is done by

ensuring that our suppliers' climate goals are aligned with ours and setting clear expectations towards

this. Both targets include SalMar’s activities in Norway and Iceland.

SalMar is very serious when it comes to anti-greenwashing. SalMar commits to always presenting

accurate, honest, and holistic information. This also yields for our carbon accounting. SalMar is proud

to have achieved a significant GHG reduction since our base year for emission targets. As we approach

our already ambitious science-based targets, we will in due course re-evaluate our GHG reduction

commitments including evaluating a Net Zero target.

Scope 3 emissions are presented as per Greenhouse Gas Protocol categorizaton.

Norway Iceland

Scope 3 Description 2023 2020 2023 2020

Cat 1 Purchased goods and services 726,117 999,001 41,129 57,859

Cat 3 Fuel and energy related activities 8,028 9,060 673 248

Cat 4 Upstream transportation and distribution 509,351 484,837 18,157 7,640

Cat 5 Waste generated in operations 840 14,380 23 28

Cat 6 Business travel 450 612 32 4

Total All emissions in Scope 3 target

1,244,786

1,507,890 60,014 65,779

The categories presented above make up SalMar’s emission target for Scope 3 and were deemed most

relevant to SalMar’s activities. SalMar has included categories 2, 7, 9, 10, 12 and 15 into our GHG inventory,

but they were deemed negligible or too inaccurate in estimation for inclusion in our Scope 3 targets by

our internal team and during consultation with the Science Based Targets initiative. Categories 8, 11,

13 and 14 were deemed not relevant for our activities.

The groups GHG

emission reduction

2020–2023

270.000 tons

-equivalents

Equaling 9x the Group’s own

Scope 1+2 emissions

SalMar commits to apply to the Science Based Targets for

updated GHG emission reduction targets by the end of

2024 following the Forest, Land and Agriculture (FLAG)

recommendations.

Sustainability and Corporate Responsibility Environment & Technology

–42%

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

–36%

–30%

–24%

–18%

–12%

–6%

–0%

-17%

-4%

Scope 1+2 Scope 3 Total emissionsTarget 1.5˚C

–42%

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

2030

–36%

–30%

–24%

–18%

–12%

–6%

–0%

-25%

-13%

Emission reduction performance

In 2023 SalMar continued its strong efforts to reduce GHG emissions. The Group’s Scope 1 and 2

emissions were reduced by 4% from 2022 and is now moving at pace with our reduction target. The

main reason for the increase from 2020 to 2021 was the addition of workboats in Iceland, more than

doubling the Scope 1 emissions year over year for Icelandic Salmon. The improvements in 2023 comes

after a year of focusing on establishing best practice across operations after acquiring two large aqua-

culture companies in late 2022, and the results show that we are making progress.

The progress in Scope 1+2 emissions comes despite an increased production, and as can be seen from

the GHG emission intensity graph, the Group's emission intensity in Scope 1+2 is now leading our

target trajectory.

SalMar has been very successful in reducing Scope 3 emissions, resulting from strong collaboration

and commitment towards our suppliers. The Group’s Scope 3 emissions have been reduced by 17%

since base year. Since Scope 3 emissions make up almost 98% of the Group's total emissions, this also

means that the Group’s total emissions have been reduced by 17% since 2020, a reduction of more

than 270,000 tons of CO

-equivalents. This is an achievement SalMar is very proud of.

SalMar's absolute emissions saw an increase in 2023 due to increased production, but is still leading

the GHG reduction target trajectory. SalMar continued to decrease its GHG emission intensity (GHG

emissions per gross growth at sea), meaning that SalMar is becoming more climate-efficient every year.

SalMar was in early 2023 listed on the Financial Times publication "Europe's Climate Leaders 2023" for

a third consecutive year following their third publication of the list.

SalMar recognizes that its direct emissions in Scope 1 and 2 are small compared to the emissions in its

value chain (Scope 3). Engaging with suppliers and trade associations to develop an understanding of

best practice and effective emission reductions plans is vital to our strategy and overall performance

on climate change mitigation.

Group GHG Emissions – Absolute

Group GHG Emissions – Intensity

Sustainability and Corporate Responsibility Environment & Technology

Overview of energy and greenhouse gas emissions

SalMar's greenhouse gas inventory is aligned with the Greenhouse Gas Protocol.

. The values are based

on data reported from internal and external systems, where one uses a variety of emission factors

for

the most accurate calculation of the greenhouse gas emissions.

SalMar consumed a total of 10,325,762 litres of fossil fuel (368 TJ) and 182,741 MWh of electricity

(658 TJ), where 46,080 MWh of the energy (166 TJ) came from reusing waste heat.

All electricity in Iceland derives from geothermal and local hydro power sources, making the climate

impact minimal.

Following the steep increase in cost of Guarantees of Origin Certificates for electrical power, SalMar

decided to pause these purchases in 2023. This results in SalMar's total market-based Scope 2 emissions

being 46,981 tCO

e in 2023.

SalMar has performed carbon accounting since 2014. For values presented back to 2014, please see

our Annual Report for 2021.

1 The analysis is based on the international standard "A Corporate Accounting and Reporting Standard", which is

developed by "the Greenhouse Gas Protocol Initiative" - GHG protocol.

2 Sources emission factors: DEFRA, IEA, IMO, Ecoinvent and information from suppliers in the value chain. The reference

list is not complete but contains the most important references to factors used by CEMAsys. In addition, a range of

local/national sources is relevant, dependent on which type of emission factor is used.

Well boat & service boat – 4.2%

Packaging – 2.6%

Fuel and energy related activities – 0.7%

Other – 0.3%

Scope 1 – 2.0%

Scope 2 – 0.3%

Fish feed

54.6%

Transport

to market

35.3%

Group GHG

Emission

Breakdown

Sustainability and Corporate Responsibility Environment & Technology

Overview of energy and

greenhouse gas emissions

Group Norway Iceland

Target

Status

vs.

Target

2023 2022 2021

Base

Year

2020

Status

vs.

Target

2023 2022 2021

Base

Year

2020

Status

vs.

Target

2023 2022 2021

Base

Year

2020

Energy consumption (TJ)

Scope 1

368 379 326 316 338 349 294 301 31 30 32 15

Scope 2

658 679 640 532 619 637 617 513 39 42 22 18

Scope 1 + 2

1,026 1,058 966 848 957 986 911 814 69 73 55 33

Greenhouse gas emissions

(1000 tCO

Scope 1

42%

reduction

from

2020 to

2030

-5% 27.3 28.7 29.7 28.7 -9 % 25.1 26.6 27.5 27.7 +110 % 2.2 2.1 2.2 1.0

Scope 2

+5% 3.5 3.4 3.0 3.4 +5 % 3.5 3.4 3.0 3.4 0.0 0.0 0.0 0.0

Scope 1 + 2

-4% 30.8 32.1 32.7 32.0 -8 % 28.6 30.1 30.5 31.0 +110 % 2.2 2.1 2.2 1.0

Scope 3

-17 % 1,305 1,244 1,422 1,574 -17 % 1,245 1,172 1,354 1,508 -9 % 60 72 68 66

Total (Scope 1+2+3)

-17 % 1,336 1,276 1,455 1,606 -17 % 1,273 1,202 1,385 1,539 -7 % 62 74 70 67

GHG Intensity - Biological

Energy intensity

(GJ/tonn produced)

3.3 3.7 3.2 3.0 3.3 3.7 3.2 3.1 4.1 3.5 3.2 2.4

Scope 1+2 emission intensity

(kgCO2e/tonn produced)

42%

reduction

from

2020 to

2030

-13 % 100 113 107 115 -16% 98 114 106 117 71% 130 99 128 76

Scope 3 emission intensity

(kgCO2e/tonn produced)

-25 % 4,215 4,377 4,666 5,626 -25% 4,251 4,451 4,707 5,666 -26% 3,586 3,440 3,980 4,841

Scope 1+2+3 emission intensity

(kgCO2e/tonn produced)

-25 % 4,315 4,490 4,773 5,740 -25% 4,349 4,565 4,812 5,782 -24% 3,716 3,539 4,108 4,917

1 Location-based. Market-based GHG emissions are 46,981 tonnes CO

e for the Group in 2023.

2 All intensities are calculated with tonnes produced biomass, gross growth in sea.

Sustainability and Corporate Responsibility Environment & Technology

We are electrifying the value chain

As part of our endeavor to promote environmental sustainability in

the aquaculture industry, SalMar is dedicated to increasing energy

efficiency. We are actively exploring various strategies to achieve this

goal, including supplying onshore electricity to power our sea farms

and electrifying our vessels. We believe that electrifying our value

chain will play a crucial role in reducing Scope 1 emissions.

Over the past years, SalMar has undertaken

projects to lay power cables from shore

to several of our sea farms, resulting in

the provision of electric/hybrid solutions

to a total of 69 sea farms in Norway and

two in Iceland. As of 2023, this represents

65% of our active sea farms, an increase

from 55% in 2022. In addition to signif-

icantly reducing diesel consumption and

minimizing emissions, electrification also

has positive occupational health impacts by decreasing noise pollution

from diesel generators.

Looking ahead, we will continue to expand our efforts by connecting

additional sea sites to onshore electricity sources.

In 2016, SalMar started using the world’s first fully electric aquaculture

work boat. Named the Elfrida, the work boat is currently in operation

at one of our sites in Møre & Romsdal County. In 2020, SalMar started

using the world’s first battery-hybrid wellboat, the RoVision, and in

2023, SalMar entered the world's first fully electric service vessels

into operation.

While we will continue to put more electric and hybrid-propulsion boats

into operation, we will also investigate alternative energy sources

which can help to reduce our greenhouse gasemissions. In 2024,

SalMar plans to put the first ever workboat running on hydrogen into

operation. The hydrogen vessel will reduce SalMar's emissions by 300

tons CO

e per year compared to a conventional workboat.

We use local energy and water resources

As part of our efforts to improve energy efficiency, SalMar prefers to

use local water-based energy sources, and we always strive to take

advantage of such resources at our facilities.

Our largest hatchery, Follafoss, utilizes heat exchangers to extract

energy from the wastewater produced by the nearby cellulose plant.

This process yields approximately 20 million kWh of energy, resulting

in reduced energy consumption for SalMar. Additionally, the hatchery

obtains its production water from the Follafoss Power Plant.

To further harness the potential of the water supply, a turbine has

been installed in the hatchery's supply pipe, which generates up to 1.5

MW of electrical power before the water is used for fish production.

In Iceland, the hatcheries take advantage of the region's natural geo

thermal energy sources by using geothermal heat exchangers to

warm the intake water, thereby reducing the energy requirement.

Furthermore, the harvesting plant in the Westfjords utilizes the local

hydro power to enhance efficiency.

We make effective use of our fish feed

Fish feed accounts for almost 55% of our Scope 3 emissions. To

reduce our overall greenhouse gas emissions, it is therefore crucial

to increase the efficiency of our feed consumption, and use novel,

low-carbon feed ingredients in our fish feed. 169,651 tons of the

Group's GHG emissions came from land-use change, all relating to

feed farming operations in our value chain. This denoted 23% of

the emissions from feed production. SalMar is in dialogue with feed

suppliers on ways to both include more climate-friendly feed ingre-

dients in the feed, but also on how to improve agricultural practices.

The total emissions deriving from feed farming has been reduced by

29% since 2020. This is mainly due to strong collaborations with

our feed suppliers in reducing the unit carbon footprint of our feed

compositions and improving agricultural practices.

Together with our feed suppliers, SalMar are currently running wider

trials on projects to reduce emissions from feed farming. This involves

introducing novel feed ingredients into our feed with lower carbon

footprints, and applying innovative solutions on ground for more

sustainable feed sourcing. SalMar are applying solutions across oper-

ations continuously as new discoveries on best practices are made.

Another important measure for reducing our carbon footprint through

feed is to optimize our feed conversion ratio, i.e., how much feed we

need for our salmon to grow. If we can optimize our feeding practices

even further, we can reduce our impacts on

the climate and environment.

We are cutting emissions by

investing in local processing

and new methods of transport

Local harvesting and processing of farmed

salmon is essential to the industry’s value

creation, and a core focus of SalMar. It is

also a very climate-friendly action. The

processing of salmon reduces both the

weight and volume of the products to be

transported, which cuts transport-related carbon emissions.

In 2023, 36.3% of our harvested volume in Norway was processed

locally. This has reduced emissions by more than 90,000 tonnes CO

or 17%, compared to the entire volume sent to markets as whole fish.

The level of processing is greatest with respect to overseas markets,

which is also where the greatest emission reductions are obtained.

Sites supplied

by onshore

electrical power

(hybrid/el)

65%

Reduction in GHG

emissions due to

local processing

in 2023

90,000

tonnes CO

Sustainability and Corporate Responsibility Environment & Technology

This clearly demonstrates that our focus on local secondary process-

ing is an important factor in reducing greenhouse gas emissions.

InnovaMar, our main harvesting and processing plant, is fully opera-

tional in Central Norway. The upgrading of our secondary processing

plant Vikenco, in Møre & Romsdal County, was completed at the start

of 2021, and InnovaNor, our newest harvesting and processing plant

in Northern Norway, came into operation at the end of 2021, and is

now operating at full force.

SalMar is exploring new methods of market transportation through

various projects that combine sea, rail, and road transport. Since

2021, SalMar have trebled its rail transport from Northern Norway,

which has almost 300 times lower GHG emissons than trucking. We

are also dedicated to improving existing solutions for transport to

market. Trucks provide a unique flexibility in salmon transport and

remain a central part of our distribution network. Therefore, making

sure that we improve the truck transport will be core to reaching our

sustainability targets. SalMar have made an agreement at our main

processing facility at Frøya for daily transport with trucks running

on biogas. This could prove an important step towards reaching our

GHG emission targets.

In 2021 a new boat transportation route from Iceland to the east

coast of the US was established, reducing the carbon footprint of

our products as they previously have been sent with air freight.

We have conducted a study analysing the footprint

of different farming technologies

At the end of 2021 SalMar together with experts from the R&D com-

pany Asplan Viak conducted a life cycle assessment for the carbon

footprint and energy requirement for different salmon farming tech-

nologies. The study analysed:

• Open net pen production (Coastal)

• Offshore net pen production

• Closed net pen production (Coastal)

• Land-based production in recirculating aquaculture

systems (RAS)

The study showed that open net pen and offshore production have

a lower carbon footprint than closed net pen and land-based pro-

duction before transportation to the end consumer. This is because

open and offshore technologies require less energy than closed and

land-based technologies.

The study also found that local processing is key to reducing the

carbon footprint when using air freight. For the US market, fish

produced in open or offshore net pens in Norway and transported

as fillets by air freight has a similar carbon footprint to fish produced

locally in land-based facilities in the US on an American electricity

mix. The study gives us further confidence in SalMar’s strategic

endeavours both coastal and offshore.

We analyze climate-related risks and opportunities

In 2023, SalMar conducted its annual assessment of climate risk

for all its operations across the value chain from roe to plate and

accompanying suppliers to the value chain. The assessment is aligned

with the Task Force on Climate-related Financial Disclosures (TCFD)

framework and evaluates both risks and opportunities and associated

physical and transitional implications to SalMar’s financial position.

Some key findings include:

• SalMar’s assets running on fossil fuels, e.g., work boats,

company cars, etc. are sensitive to SalMar’s climate

ambitions and external pressure to quickly transition to

zero-emission fuels.

• Carbon taxation could have material financial

implications on SalMar if introduced on imported and/or

exported products.

• Increased frequency of acute physical events like

heatwaves and floods can affect the crops necessary

to grow some of SalMar's feed ingredients. Reduced

availability of feed ingredients contributes to increased

costs on what is already SalMar's largest operational

expenditure.

• The low carbon footprint of salmon farming relative to

other protein sources puts salmon in pole position to

withstand CO2-efficiency regulations and presents an

attractive option for climate-aware consumers. Central

bodies like the Food and Agriculture Organization of the

United Nations (FAO) states that the seafood industry will

play an important role in achiving the UN's Sustianable

Development Goals, given its high nutritional output and

low footprint.

In conclusion, there is not currently grounds to write off value

from SalMar’s assets from climate change and its associated

implications on SalMar’s activities, nor is there currently grounds

to alter expected future cash flow. However, this remains an

important matter to continue to assess in the coming years.

No financially material events nor any direct costs occurred as

a result of climate risk in the reporting period.

For more information on SalMar's climate risk and opportunity

analysis, see SalMar's Task Force on Climate-related Financial

Disclosures (TCFD) Report published on our website.

Sustainability and Corporate Responsibility Environment & Technology

Biodiversity and Site Environment

Salmon thrive and develop optimally in their own natural habitat. At

the same time, we have great respect for the fact that we use the

local community’s shared assets in our production. Coming generations

must have the same opportunities as us to draw benefits from the

sea, and SalMar has a duty to keep the sea and all its living creatures

in good condition. Our technology is therefore tailored to treat both

the fish and the environment in a gentle fashion.

We protect the seas

The seabed beneath all our sites is inspected regularly to

see whether/to what extent the surroundings have been

affected by our operations. We are working continuously

to find the optimal locations for our farms, so that we can

realise our objective of having all our operational sites in

a condition designated as “very good” or “good” B-analysis

benthic score of ≤ 2

). In 2023, 89% of our operational

sites in Norway achieved this score, while 100% of our

sites in Iceland did so. SalMar carry out risk assessments

continuously, assessing the locations of our current and

potential sea sites with respect to pollution sensitivity.

Locations with a high sensitivity to nutrient pollution will

not be chosen for operations.

SalMar also monitors inorganic and organic loading, like

nitrogen, carbon and phosphorous, through the quantities of uneated

feed and the salmon's faecal matter. This is done at all sites to ensure

that the loading is within site-specific permits. SalMar have also con-

sidered Integrated Multi-Trophic Aquaculture (IMTA) with kelp and

mussels as a possible method for removing organic and inorganic

loading from the sea and seabed.

1 The B-analysis is set out by the Norwegian Standard NS9410. The condition

is graded on a scale of 1 to 4.

Together with the trade union Norwegian Seafood Federation (Sjømat

Norge), other fish farmers and research institutions, SalMar moni-

tors large areas to see whether fish farming operations are having

a regional impact. The latest Risk Assessment of Norwegian Aqua-

culture published by the Institute of Marine Research

states that the

risk of eutrophication deriving from nutrient emissions is considered

low in all production areas in Norway, and the risk of environmental

impact on the seabed as a result of particulate organic emissions from

fish farms is considered low at sites with a soft seabed and moderate

at sites with a mixed or hard seabed.

SalMar have in the last years significantly reduced the num-

ber of sea sites with copper impregnation in the coating,

moving towards zero inclusion. This is due to the negative

impact copper may have on the seabed.

In addition, all of our harvesting and processing facilities

and onshore hatcheries comply with their discharge permits

on excess wastewater which is treated before it is dis-

charged to sea. SalMar measures and monitors wastewater

quality at all our facilities to ensure that no breaches of our

permits occur. All our facilities are located in areas with low

risk within all main categories of the WRI Aqueduct map

including water quality risk (physical risk quality), water

stress, water depletion, and regulatory and reputational risk.

There were no incidents of non-compliance to water quality permits

or to discharge permits in 2023.

Our wastewater volume target is aligned with our water withdrawal

target, as we do not store water. All water that is withdrawn is dis-

charged to the recipient after the appropriate treatment. Considering

2 Source: Risk Assessment of Norwegian Aquaculture, www.hi.no

3 www.wri.org/aqueduct

SalMar’s water withdrawal reductions in the last years, this also means

the same reduction in wastewater discharge.

SalMar is involved in a large industrial project in Central Norway where

we are developing circular solutions for our sludge and nutritious

wastewater from smolt production. The project connects different

industries, where the sludge from SalMar's smolt facility is sent to

biogas production and the wastewater is sent to vegetable pro-

duction where the nitrogen is extracted from the wastewater and

used directly to grow vegetables. This is one of several examples

of SalMar's approach to sustainable development of the industry,

showcasing that partnership for the goals is important.

As part of SalMar's community engagement strategy, SalMar engages

with all local communities in our operating areas individually on

a monthly basis on important topics for our local stakeholders. Here,

we openly discuss the positive and negative impacts of our opera-

tions on residents and take feedback from the public. Based on these

engagements, SalMar have implemented several improvement action,

including developing site-specific pollution plans.

Biosecurity

Biosecurity is vital for fish farmers to limit the introduction and spread-

ing of parasites and harmful organisms to the sea sites. SalMar’s over-

arching biosecurity plan is based on maintaining a high level of fish

health and welfare, as well as complying with several national laws

on animal health and proper aquaculture practices.

SalMar's approach starts prior to our operations, when choosing the

optimal locations for our sea sites. SalMar carries out benthic tests and

a mapping of biodiversity and ecosystems in the areas around our site.

This is then monitored throughout production. The mapping includes

spawning grounds, fishing spots, areas with vulnerable species, both

fauna and flora, any nearby protected areas and recreational interests,

nearby salmon rivers and any other relevant topics at that site.

B-analysis

score ≤ 2

Norway:

89%

Iceland:

100%

Sustainability and Corporate Responsibility Environment & Technology

Important measures also include external factors at the site, like wind, current and wave exposure. This

is important due to the spreading of organic and inorganic loading and the direction of movement for

potential parasites in the water.

SalMar has site specific biosecurity plans that all site managers must fill out stating their position,

distance to other sites, distance to local rivers, any active local regulations at their site, silage manage-

ment plans, site environment including current speed and directions, and a risk assessment of impacts

on other sites and from other sites.

SalMar also has specific biosecurity plans and procedures relating to high-risk operations. One example

is when an external vessel approaches the site, or when we move fish from one place to another.

SalMar participates in the NYBROK/BROK project led by the Norwegian Institute for Water Research

(NIVA), where the goal is to establish improved measures for biosecurity and biological risk during

transport of salmon and operations using well-boats.

We make use of new areas and new technologies

SalMar wishes to make use of the open ocean for food production. For this reason, we have developed

the world’s first offshore fish farm, in collaboration with partners in the aquaculture, offshore oil & gas

industry, and relevant research establishments. In connection with our pilot project Ocean Farm 1, new

and innovative equipment technology has been developed, which will benefit the entire aquaculture

sector. Offshore fish farming moves the salmon out to its natural habitat, which allows us to operate

on the salmon’s terms to an even greater extent than today.

At the start of 2021, our first closed net pen went into operation in Møre & Romsdal County. This is

a new closed-containment unit, where water is pumped up from beneath the unit and purified before

being discharged back into the sea. This increases biosecurity and helps keep control of lice numbers

inside the unit. The unit is used for post-smolt production, where the fish will grow from a standard

smolt size to around 800–1,000 g before being transferred to conventional open net pens.

Building on this, SalMar began building what will be the world’s largest fish farming construction made

by thermoplastics, the Marine Donut, in collaboration with Bluegreen in 2022. This is a new, innovative

design for closed net pen that SalMar is excited to realize in 2024.

Sustainability and Corporate Responsibility Environment & Technology

Water Management

Compared to other food production types, salmon farming requires less freshwater since the fish spend

much of their lives in the sea. SalMar’s total water withdrawal is presented in the table below.

Water withdrawal (1000m

) 2023 2022

Freshwater source Group Norway Iceland Group Norway Iceland

Surface water 44,709 37,584 7,125 49,071 44,955 4,116

Ground water 1,978 1,366 612 1,535 1,351 184

Municipal/Third party water 12,064 0 12,064 11,932 0 11,932

Total water withdrawal 58,751 38,950 19,801 62,538 46,306 16,232

The Group saw a 6% decrease in water withdrawal in the last year, being well on track to reach

our 2030 goal.

We use fresh water only from low-risk areas

In large parts of the world, access to water is a challenge. SalMar recognizes the risks posed by water

scarcity on a global scale. In SalMar’s operations, all withdrawn freshwater comes from areas where the

risk of water shortages, or the risk of poor water quality, is low. The water risk map produced by the World

Resource Institute

provides a good overview of the water risk around the world. All SalMar’s activities

and infrastructure are in areas defined as having a low water risk and low water stress, both in Norway

and Iceland.

In SalMar, we are continuously engaging with our suppliers on sustainability-related matters. An important

matter is understanding the impact on freshwater availability, water stress, and overall water risk through

our value chain. Therefore, we evaluate and engage specifically with suppliers carrying out activities

in areas with a medium or high water risk. Among our suppliers, the suppliers of fish feed, especially

soy which makes up approximately 20% of our feed, are considered to have the largest potential risk

of negative impacts on water stress and scarcity in their value chains. SalMar requires its suppliers to

withdraw, consume and discharge water responsibly and sustainably. Furthermore, we require our feed

suppliers to have a freshwater reduction target including its value chain and a strategy to limit water

risk in feed sourcing. It is important to SalMar to hold all suppliers accountable and responsible for their

activities and their impacts, and we are in continuous dialogues to identify and implement best practice

on sustainability, such as water use efficiency. You can read the approach of one of our feed suppliers in

their Land & Water section of their ESG Report for 2023. This supplier also engaged the World Resource

Institute to set context-specific water targets across their value chain, culminating in this white paper.

1 www.wri.org/aqueduct

Both our main feed suppliers have carried out analyses on water risk and their impacts and risks through

their value chains. The analyses provided strong insights and have resulted in our feed suppliers estab-

lishing priority facilities for implementing water stewardship practices, involving substantial guidance

and support towards the farmers. Furthermore, our feed suppliers have, through partnerships with third

parties, established substantial water restoration targets and targets for reducing water pollutants in

water-stressed regions. Progress is monitored by SalMar through continuous dialogue and guidance.

Our largest feed suppliers' has further established a community engagement plan where they target to

improve the access to safe drinking water and sanitation for 500,000 people in priority communities.

Our feed supplier’s own facilities are all located in Norway and considered to have a low overall water risk

according to the WRI Aqueduct Atlas. The water usage at these facilities were 0.14 million m

in 2023.

We use state-of-the-art technology to reduce water consumption

SalMar’s consumption of fresh water relates largely to its onshore hatcheries. These facilities accounted

for 96% of freshwater consumption in 2023. The remaining consumption comes mostly from our

harvesting and processing activities.

In Norway, SalMar has reduced its freshwater withdrawal by 16% in 2023,

and 24% in the last two years. This denotes a reduced freshwater with-

drawal of 12.3 million cubic meters.

The reduction in Norway is due to the transition from use of using flow-

through technology to recirculating aquaculture systems (RAS) technology

in our onshore hatcheries.

The transition from flow-through technology to facilities based on RAS

technology is an important part of our strategy to reduce the amount of

freshwater used at our hatcheries. All our more recent hatcheries have

been built using RAS technology, with 96–99% of the production water being purified and reused.

In 2023, 96% of the biomass transferred from our smolt facilities in Norway had been raised in RAS

facilities. Since all new capacity is built with this technology, water consumption per unit produced will

continue to fall in the future.

We target a 20% reduction in freshwater withdrawal from 2022 to 2030.

See SalMar’s Water Management Policy for more information on how SalMar conducts responsible

water management.

Smolt delivered

from SalMar

in Norway

from RAS:

96%

Sustainability and Corporate Responsibility Environment & Technology

Circularity and Nutrient Management

SalMar strives to transition from linear to circular economies, influencing

material flow patterns, procurement strategy and strategic partnerships

in operational areas with high potential for reuse of resources.

At the Senja hatchery, an ultramodern drying facility has been installed

for utilizing the produced sludge as a resource. All the sludge produced

by the facility is dried to a 95% solid, which is then delivered to a third

party for use in the production of soil improvement agents that can be

found on sale in the retail sector. At the Follafoss hatchery, the sludge is

sedimented out to form an 18% solid. The bulk of the sludge is used for

biogas production. Some is also delivered to a third party, which sanitises

it by adding it to livestock manure. The resulting product is spread on

fields as a soil improvement agent/fertiliser. These are important steps

for SalMar in performing responsible nutrient management.

We also carry out monthly measurements of the total organic carbon

(TOC), oxygen demand, total nitrogen and total phosphorus in all our

wastewater which is sent to local authorities. If resources cannot be

effectively reused, one must handle its disposal responsibly. All SalMar

departments have a waste management plan, which stipulates the

receiving facilities approved for various types of waste. Packaging and

fish farming equipment, such as collars, nets and mooring devices are

delivered to undertakings that reuse the materials. SalMar will continue

to handle our resources responsibly and limit waste generation.

We help to reduce marine pollution

Pollution of the seas, and plastic pollution in particular, is a signifi-

cant environmental problem. SalMar recognises this and wishes to

help reduce the amount of plastic waste polluting the oceans. We are

therefore striving for further improvements in our own waste handling

and reductions in any microplastic emissions from our operations and

are engaging in clean-up efforts along the coast. SalMar is working on

several initiatives to reduce the volume of its plastic waste:

• We ensure that obsolete plastic equipment is recycled by delivering it

to established return schemes and collecting other waste for delivery

to municipal waste handling systems.

• We contribute to more reuse and recycling, particularly of plastic

materials. This is achieved by improving the material surrounding our

end products and increasing our use of reusable boxes.

• We support measures that help to increase our knowledge

of the presence and consequences of microplastics and

nanoplastics in the sea.

• We contribute to beach cleaning/collection of plastic waste through

funding, lending boats for use during clean-up operations, as well as

participating ourselves.

• We work with the Norwegian Seafood Federation and other initiatives

to reduce pollution of the seas, in particular by plastic waste.

In 2023, SalMar became a partner in a research programme called DSolve,

aiming to research the feasibility of using biodegradable materials as

a substitute for plastics in aquaculture. More information about the

programme can be found on their website: (DSolve)

Sea pollution through uneaten feed and faecal matter is also a challenge

in the fish farming industry. SalMar takes its responsibilities towards

being an accountable industry actor seriously and is engaging in projects

for increased knowledge on this matter. Furthermore, we are working

with new optic technology to optimize feed conversion ratio, thus

limiting the feed spilled to sea.

We limit nutrient spill

Through 20

23, SalMar has been working with feed suppliers to test

a feed type for the smolt phase that contributes to more of the waste

particles being taken up in the mechanical filters in the facilities. The

results show reduced spill of phosphorous, carbon and nitrogen, and

improved water quality. Through collaboration with our feed suppliers,

we now have an established software for measuring, analyzing and

predicting our organic and inorganic spill to sea (like carbon, nitrogen

and phosphorus), down to each sea site, based on feed composition,

feed volumes, digestibility of the feed and the salmon's uptake. This

provides us with detailed and specific insights into our environmental

footprint at site-level, both for dissolved particles and particulate matter.

Through our value chain we also require that our feed suppliers have

established Nutrient Management Plans and requirements towards

their own suppliers at farm-level to have water quality assessments

and targets. Our feed suppliers also require farmers to carry out an

assessment of their potential adverse impacts on biodiversity and

ecosystem services, and have measures in place to avoid, minimize or

rectify these. SalMar are in continuous discussions with feed suppliers

on how to optimize agricultural practices on ground. Our feed suppliers

are today using crop rotation (e.g., rotating soy and wheat) which helps

promote nutrient cycling, interrupt pest/disease cycles, and improves

soil health and biodiversity. There is also ongoing work for increased

adoption of organic farming techniques, limiting pesticide use.

Raw materials in our feed shall not include highly hazardous pesticides

(HHP) such as contaminants outside the limits set forth in the Directive

2002/32/EC on undesirable substances in animal feed (including all

amendments afterwards) and Regulation EC 396/2005 on pesticides

in food and feed (including all amendments afterwards). For ProTerra

certified soy from Brazil, producers shall maintain records of all fertil-

isers, pesticides, other agrochemicals and other inputs purchased, used,

and disposed of, including biocontrol agents. Data on pests, diseases,

weather conditions during spraying, and weeds shall also be recorded

and retained. Operations that use agrochemicals should make stepwise

changes in their systems to significantly minimise or eliminate the

need for pesticides. The substances and quantities applied and the

number of applications per field should be monitored. Agrochemicals,

including pesticides and fertilisers, shall be applied using methods that

minimise harm to human health, wildlife, plant biodiversity, and water

and air quality.

We exploit every part of the salmon

SalMar exploits all by-products (head, spine, and offcuts) from our

salmon fully. All offcuts from the production of fillets at SalMar’s harvest-

ing and processing facilities are sent for further processing, resulting

in 100% of the raw materials being utilised. From InnovaMar, the raw

materials go directly to Nutrimar via a system of conveyer belts/pipes,

which ensures a high degree of freshness and usable volume when

processing this raw material. It also means that there is practically no

need for input factors relating to its transport and handling. For more

information about Nutrimar and its products, see www.nutrimar.no. The

fish that die during production are sent to companies that use them as

ingredients in the feed industry.

Sustainability and Corporate Responsibility Environment & Technology

Research and Development

Norway's aquaculture industry has undergone remarkable growth

and development, with SalMar being a significant contributor to this

progress by prioritizing the advancement of knowledge in its oper-

ational areas.

The company achieves this through close collaboration with pub-

lic authorities, educational and research institutions, and industry

associations. In 2023, SalMar continued its extensive research and

development activities in various fields, with a focus on fish welfare

and lice control. The company undertook significant R&D projects at

its processing plant, with considerable attention devoted to optimiz-

ing feeding and controlling feeding at its sea farms. SalMar remains

committed to providing the industry with sector-specific knowledge,

benefiting the sector as a whole.

We support research establishments and academics

SalMar’s communications with the NTNU have been growing in scope

in recent years, which the company considers to be only natural. The

NTNU’s Taskforce Salmon Lice research programme was set up in 2020

partly at the initiative of SalMar. The taskforce is a collaborative effort

between the NTNU and many aquaculture industry organisations. The

objective is to take a broad look at the problems caused by salmon lice.

The programme is well underway, and SalMar is participating actively

in several of its subprojects. The NTNU has created five doctoral

research positions, with postgraduate and undergraduate students

connected to each one.

SalMar is also in close contact with the University of Tromsø (UIT)

and has signed a cooperation agreement involving the sharing of

experience and the initiation of joint projects. One example is the

work being done to establish an endowment professorship in the

field of recirculating aquaculture systems (RAS) at the UIT. This is

a cooperative venture involving several industry players. We are very

engaged in supporting the education of tomorrow’s researchers and

ensure that students gain a good insight into the aquaculture sector,

so they can contribute to its further development.

In collaboration with the NTNU, SalMar has endowed a professor-

ship within the field of aquaculture cybernetics. The professorship is

intended to promote cross-functional research linking the areas tech-

nical cybernetics, biology and aquaculture. It will act as a knowledge

base for and link between the aquaculture industry and the academic

world. The professorship will also contribute to the recruitment of

more students to the field of aquaculture, thus securing the indus-

try’s access to highly qualified technological expertise. This professor-

ship will strengthen the NTNU’s position as one of the world’s leading

universities for aquaculture and aquaculture technology.

We actively use R&D licences and have multiple

green licences

SalMar has been actively engaged in partnerships with R&D estab-

lishments for many years. This also includes collaboration on the

operation of R&D licences. The scale and professionalism relating

to important development tasks continues to increase. SalMar sees

itself as a professional, but demanding partner, whose aim is to ensure

that the results of all trials are as relevant as possible, and that plans

and protocols take into account the practical realities of fish farming.

SalMar has dedicated personnel who organise and assist research

establishments in their efforts, at the same time as operational staff

gain experience in how best to safeguard research results under

busy day-to-day operating conditions. Proximity to the research,

with opportunities to influence both its planning and areas of focus

are important sources of motivation for SalMar. The development

of vaccines, optimisation of medication, feeding and nutrition, and

technological issues relating to large-scale operations are examples

of important areas for further research.

Following the Norwegian authorities’ 2013/2014 round of licence

allocations, SalMar obtained “green” licences. The terms of the green

licences set stricter limitations on the number of salmon lice and the

number of medicinal delousing treatments, as well as a stronger focus

on escape prevention. In connection with its green licences, SalMar has

focused particularly on the use of cleaner fish, in the form of farmed

lumpfish, to control sea lice levels, and the use of a more secure net-

pen construction. We have also emphasised participation in a salmon

surveillance project in Trøndelag’s salmon rivers, in order to assist in

the development of methods and expertise related to the tracking

and mapping of escaped farmed salmon in rivers. So far, experience

from the operation of these sites has been good. A separate report is

published annually detailing SalMar’s experience and evaluating the

operation of its green licences. This report is available on our website.

We are working long-term to develop a more

genetically robust strain of salmon

Genetics and the development of a more robust salmon are important

preventive measures to reduce biological risk. SalMar has its own

breeding programme based on the Rauma Broodstock. We use no form

of genetic engineering in our breeding programme. See SalMar’s GMO

and Growth Hormones Policy for more information on this.

SalMar’s focus on breeding and genetics includes a collaboration with

Benchmark Holding through our co-ownership of SalMar Genetics.

SalMar is pleased to see that this model has provided a solid foun-

dation for the further development of the Rauma Broodstock in the

years ahead. In this effort, we will be focusing on the development of

robust qualities, in addition to general resistance to disease and good

growth. The change in focus and intensity of our efforts in this area

is a natural consequence of the Group’s desire to control the value

chain and safeguard the continued development of our products and

the long-term future of our business.

Sustainability and Corporate Responsibility Environment & Technology

We use new packaging solutions and reduce food waste

SalMar is committed to reducing food waste and promoting sustainability through the development of

better packing and packaging solutions. As part of this effort, we are involved in national and international

projects aimed at creating effective and quality-preserving production, packaging, and distribution methods.

Our focus is on further developing our packaging solutions by adopting more environment-friendly materials,

promoting material reuse, and adding other desirable properties. We are working towards increasing the

percentage of our products transported in reusable boxes, with a large proportion of our pre-rigor finished

products already packed in such boxes. This approach results in significant savings by reducing the need

for ice and avoiding polystyrene box disposal.

We have also stopped using ordinary ice for a large part of our fillet production, instead opting for dry ice

made from gas derived from fertiliser production. This approach reduces the weight and volume of our

consignments and, consequently, the emissions generated during transportation.

Moreover, we are continually developing new and better packaging materials and technologies, focusing

on reusable boxes, ice-free shipments, and packaging technology that provides complete bacteriological

security. We have initiated several projects aimed at extending the shelf-life of our salmon products through

the use of new freezing technology and innovative packaging solutions.

SalMar is involved in the use of Keep-It® shelf-life indicator, a device that displays the temperature and the

remaining shelf-life of the product. This indicator helps to increase the shelf-life of the product and reduce

food waste by focusing the attention of all links in the value chain, from the factory to the customer.

Currently, we are working on new projects that aim to visualize the quality of the product in the package

using new technological solutions. Our objective is to document additional quality attributes through simple

technological solutions.

Sustainability and Corporate Responsibility People & Society

People &

Society

At SalMar, we care for our colleagues, partners, and the local commu-

nities. As responsible corporate citizens, we believe that our behavior

has a positive impact on both our own operations and society at

large. With a workforce of over 2,500 employees, we are a significant

employer and a key contributor to society, which in turn gives us mul-

tiple responsibilities to people, society, and industry. We take these

social obligations seriously and uphold ethical business practices as

a core value. Our commitment is to operate in an honest, proper, and

trustworthy manner, and we take pride in showcasing our operations.

Our focus on sustainable development revolves around creating local

value, fostering knowledge development, and enabling people to live

a good life. As an employer, producer, supplier of healthy food, user of

nature and the environment, and manager of intellectual and financial

capital, we understand that these aspects are essential to our busi-

ness. Given our position, we recognize the importance of positively

and sustainably impacting our surroundings, while also giving back

to the community whenever possible.

Sustainability and Corporate Responsibility People & Society

Group Norway Iceland

Target 2023 2022 2021 2023 2022 2021 2023 2022 2021

Employees

Full-time equivalents (FTE) 2,674 2,266 1,960 2,506 2,112

1,828 168 154 133

Admin 73 66 51 55 49 36 18 17 15

Hatcheries 153 125 95 128 101 82 25 24 13

Fish Farming 1,089 817 720 1,025 759 668 64 58 52

Sales & Industry 1,357 1,258 1,094 1,297 1,203 1,041 60 55 53

Female ratio Increase 26% 28% 27% 26% 28% 28% 28% 26% 23%

Admin Increase 48% 44% 44% 47% 44% 44% 49% 51% 49%

Hatcheries Increase 26% 22% 21% 27% 22% 19% 18% 20% 39%

Fish Farming Increase 14% 13% 10% 14% 13% 10% 12% 12% 9%

Sales & Industry Increase 36% 37% 38% 35% 37% 39% 39% 33% 25%

Safety &

sickness

absence

Fatalities 0 0 0 0 0 0 0 0 0 0

LTIs 0 23 19 24 18 10 17 5 9 7

H-factor

< 3 5.4 5.3 7.7 4.5 3.0 5.9 3.0 5.8 5.5

Sickness absence <4.5% 5.5 % 5.6 % 6.0 % 5.6 % 5.7 % 6.1 % 4.7 % 4.1 % 4.1 %

Regulatory

compliance

Violations 0 1

1 1 1 0 1 0 1 0

Fines (NOK million) 0 1.7 9 0.2 1.7 0 0.2 0 9 0

1 FTE in Norway in 2022 includes new employees from NRS, NTS and SalmoNor only after the date of acquisition, 1. Nov 2022.

2 SalMar reports H-factor as LTIs per million working hours both on Group level and in Norway. Icelandic Salmon reports H-factor as LTIs per 200.000 working hours. The H-factor in Iceland is 15 when using the same calculation method as for Norway and Group.

3 The fine in 2023 was from the Norwegian Food Safety Authority relating to an incident at a farming site.

Our KPI Scorecard

All targets are timebound for the following

calendar year unless otherwise specified.

Sustainability and Corporate Responsibility People & Society

The Workforce

In order to achieve our strategic goals, it is imperative that we recruit

and retain top-notch employees regardless of their gender, age, or

background. However, this can only be achieved by providing a working

environment that is both appealing and secure. By doing so, we can

attract and retain highly skilled individuals who will contribute to our

overall success.

We have a diverse workforce

In 2023, the Group employed a total of 2,674 full-time equivalents

from 58 different countries. This is 408 full-time equivalents more

than in 2022. The workforce was made up of 704 women and 1,970

men. The female ratio of the Executive Management is 14% in SalMar

and 33% in Icelandic Salmon, SalMar's Icelandic subsidiary.

SalMar works actively towards the recruitment of women in what has

traditionally been a male dominated industry. Our goal is to exhibit

the vast opportunities for women in all parts of the industry. This

is done by actively targeting potential future employees (in school,

universities etc.) and having female representatives speak about

SalMar as a workplace.

The female ratio of employees increased in all segments in SalMar

except for in the Sales & Industry segment. The female ratio is con-

siderably higher at the Group’s Admin and Harvesting & Processing

plants than at its hatcheries and fish farms. One of SalMar’s focus areas

have been the Fish Farming segment, as this has the lowest female

ratio. This segment has seen an increase in the female ratio for five

straight years, more than doubling female employees in this period.

In accordance with the activity duty and the duty to issue a state-

ment set forth in Norwegian regulations to promote more equality

and prevent discrimination, SalMar has disclosed its KPIs in relation to

this reporting also in 2023. These KPIs include part-time employees,

temporary employees, non-guaranteed hours employees, average

number of weeks parental leave, average cash benefits

, median cash

benefits and ratio of highest to median cash benefits. Where all KPIs

are divided between female and male.

Temporary, part-time and non-guaranteed hours employees constitute

a smaller proportion of the total workforce in SalMar. Despite this, it

is important to understand whether there is involuntary part-time

work carried out. Together with labour union representatives, SalMar

regularly assess if there are employees who involuntary work part-

time and in dialogue with the employees try to adapt the working

situation. SalMar provides its full disclosure for 2023 according to the

activity duty and the duty to issue a statement on its webpage within

publication deadline 31.07.2024. You can also find SalMar's Gender

Equality Report available on our webpage, due to be updated within

the publication date mentioned above.

The remuneration assessment for 2023 show that overall cash ben-

efits in Norway are lower for female than for male. This is mostly due

to the higher proportion of women within the industry segment with

lower salary environment and since the overall seniority level is higher

for male employees. Since seniority also is a decisive factor when

employing senior managers, male representatives are overrepresented

in managerial positions. SalMar's remuneration policy does not accept

any form of discrimination of cash benefits provided to employees on

the basis of gender. No non-conformance was found from this policy

in the latest remuneration assessment. See also our ethical guidelines

available on our website.

Icelandic Salmon is certified by BSI, proving that that their remuner-

ation policy promotes equality.

Details of benefits to executive management and compensation

according to the remuneration policy for 2023 is presented in a sep-

arate remuneration report.

Overview of employees, parental leave and average

cash benefits in 2023

Female Male Total

Female

ratio

Totalt FTE 704 1970 2674 26%

Full-time employees 584 1748 2331 25%

Part-time employees 47 100 148 32%

Temporary employees 47 67 114 41%

Non-guaranteed

hours employees 26 55 81 32%

Norway Female Male Total

Difference

Average number of

weeks parental leave 27 13 16 14

Average cash benefits (KNOK) 578 718 683 -140

Median cash benefits (KNOK) 513 660 599 -147

Ratio highest to median 4.2 8.0 8.9 NA

Sustainability and Corporate Responsibility People & Society

We have clear ethical guidelines

In our Code of Conduct, we make our policy clear with respect to the

promotion of diversity and equality. SalMar accepts no discrimina

tion, abuse or harassment of our workers or partners, and we treat

everyone with courtesy and respect no matter what their ethnicity,

gender, national or social background, age, functional capacity, sexual

orientation, religious faith, political convictions or other status is.

Nobody shall be be unfairly prevented from carrying out their duties

and responsibilities. This attitude springs from the acknowledgement

that diversity contributes to a better working environment, greater

adaptability and better results in the long term.

SalMar’s Code of Conduct is available on our website.

All employees can safely report wrongdoing

SalMar has a dedicated whistleblowing channel for both Norway

and Iceland, through which all employees can report wrongdoing in

the workplace or any grievances they may have. The whistleblowing

channel was designed together with employees and trade unions,

and is accessible via SalMar's website and on the intranet in both

local languages and English. The service is operated by the inves-

tigatory unit at BDO AS, and all employees are free to use it either

anonymously or under their full names. The whistleblowing channel

aims to be a contributor towards keeping all people accountable for

their actions. It is encouraged for usage not only for matters regarding

oneself, but also if we see others treated unfairly.

All employees are given training in the whistleblowing procedure and

know that they are protected from reprisal if they do make a report.

The whistleblowing procedure is also described in the management

system that is available to all employees. All cases are handled in close

collaboration with internal safety representatives and local unions.

The whistleblowing channel is open to the public, meaning that any-

one who has grievances can report these to SalMar. This is done to

ensure that our suppliers and customers also are accounted for. We

require our suppliers to inform their employees that SalMar’s grievance

mechanism is available if they want to raise concerns.

In 2023, 12 whistleblowing reports were recorded. Six reports were

deemed out of scope for the whistleblowing channel and handled

individually with the relevant management team, four were related

to working environment and two were related to external parties and

noise. The grievances were each carefully handled in accordance with

internal guidelines (Chap. 12.4 in the Code of Conduct).

For more information on our whistleblowing channel and SalMar’s prac-

tices related to this, see our Whistleblowing Policy on salmar.no.

We actively work to ensure equal opportunities and

non-discriminatory environments

To properly ensure that SalMar conducts non-discriminatory business,

and to uphold the requirements of the Activity Duty and the Duty

to Issue a Statement issued through the Norwegian Equality and

Anti-Discrimination Act, SalMar has initiated activities internally. The

activities include a mapping of SalMar’s remuneration practices and the

mapping of any involuntary part-time work, as well as activities against

discriminatory working environments. The results of this mapping

can be seen in our Gender Equality Report published on our website.

SalMar will publish an updated Gender Equality assessment in 2024.

In order to work actively, purposefully and well-structured with

equality, SalMar has set an internal task force with representation

from the senior management to investigate, analyse, and evaluate

risks of discrimination. These processes are streamlined to involve

all SalMar’s segments. Findings and experiences will be discussed

in a greater forum with the task force to establish corrective and

preventive actions.

"SalMar shall treat everyone with dignity and

respect and conduct their activities without

discrimination on the basis of race, ethnicity,

national or other origin, disability, age, gender,

sexual orientation, language, religion or status"

SalMar’s Non-discrimination and Equal Opportunities Policy

Sustainability and Corporate Responsibility People & Society

We empower our employees and encourage their

active participation

If SalMar is going to develop and constantly forge ahead, it is vital that

all employees contribute their views and suggestions for new ways of

doing things. To facilitate this, the various departments hold regular

planning and review meetings. Large parts of the Group make use of

a scheduled meeting scheme, which focuses on individual action plans,

development goals and close follow-up of the individual employee.

New recruits to SalMar receive HSE training through induction courses,

operational seminars, the SalMar School and the Arnarlax Academy.

Annual refresher courses are also held on important HSE topics and

our Code of Conduct.

The SalMar School and Arnarlax Academy are our arenas for devel-

oping individual competence and our corporate culture. In addition

to operational updates, these arenas also address matters relating

to corporate culture and leadership and involve both managers and

employees in the process of creating the world’s best aquaculture

company. Underpinning all our activities in this area, are our shared

management principles and tenets – which enable us to develop even

more SalMarians.

The level of risk associated with the work being performed every single

day at SalMar means that training and having the right competence is

vital. Training is provided internally and in the form of external courses.

Day-to-day follow-up and on-the-job learning are, nevertheless, the

most important sources for individual competence improvement.

SalMar is conscious of its role in helping to train skilled workers and

employs numerous apprentices. We collaborate with “blue” courses of

study at both secondary and university level. In Norway, these include

schemes such as Ungt Entreprenørskap, Blått Kompetansesenter and

the Norwegian University of Science and Technology (NTNU), while

in Iceland we collaborate with the Fiskteknískolí.

Furthermore, SalMar conducts periodic development discussions with

its employees, at least annually. This is common practice in most busi-

nesses, and SalMar considers this to be vital both in developing happy,

high-performing employees and in giving the employees a familiar

arena where open and honest dialogue with senior management is

encouraged.

We provide fair wages

In SalMar, 96% of our employees are on collective agreements rooted

in the national Basic Agreement negotiated between the Confeder-

ation of Norwegian Enterprise (NHO) including all its national and

local associations and individual enterprises, and the Norwegian

Confederation of Trade Unions (LO) including all its unions and asso-

ciations. This agreement ensures that employees are provided with

fair remuneration relative to the cost of living. Industry-specific col-

lective agreements relevant for SalMar's employees are negotiated

by the unions on behalf of our employees. In SalMar, The Norwegian

United Federation of Trade Unions (Fellesforbundet) and the Nor-

wegian Union of Feed, Beverage, and Allied Workers (NNN) are the

largest unions. The agreements are non-discriminatory, meaning that

employees at the same level is provided with equal pay regardless of

their gender, race, ethnicity, national or other origin, disability, age,

sexual orientation, language, religion, or status. This is aligned with

SalMar’s Non-Discrimination and Equal Opportunities Policy which is

available on our website. SalMar also requires suppliers to provide

fair wages to their workers, ensuring fair wages to all workers in our

value chain. The remaining 4% in SalMar on individually negotiated

contracts are employed in the company administration or in manage-

ment positions.

It is important to note that the employees have the right to co-de-

termination in matters that are important to their everyday working

life. Co-determination in the workplace is exercised through, among

other, union representatives who are the employees' representatives

vis-à-vis the company management. In addition to local agreements

on cooperation, the agenda and rules of this collaboration can be

found in collective agreements and various laws. This collaboration

is an important mean for SalMar to ensure company insight, involve-

ment and in the end sustainable measures regarding sociopolitical

conditions for our employees.

SalMar also provides paid sick leave to employees in accordance with

national laws.

Incentive schemes for senior executives are linked to

our sustainability KPIs

SalMar has a performance-based bonus scheme for its senior exec-

utives, based largely on the achievement of the Group’s sustainabil-

ity KPIs. Different individuals are measured against different KPIs,

depending on where in the organisation they work and what their

responsibilities are. This applies from members of Group Management

down to fish farm technicians.

For example, each individual sea farm has clear KPIs linked to fish

welfare, with both survival rate and feed factor being included in the

assessment of the performance-based bonus.

Sustainability and Corporate Responsibility People & Society

We provide a safe and secure workplace

Working at SalMar shall be safe. We work systematically with risk

management and training to protect our workforce.

In 2023, a total of 18 Lost Time

Injuries (LTI) were recorded

in Norway and 5 in Iceland.

From the 23 in total, nine

were related to fall incidents,

eight were related to pinched

fingers or hands, three were

incidents involving tools,

two were related to chemical

exposure and one incident

came from a falling object.

SalMar is again reporting LTIs

for subcontractors as a step

towards full transparency and

accountability throughout the

value chain. There were 6 LTIs

at SalMar's subcontractors in Norway in 2022 and 0 in Iceland. Three

incidents were related to fall accidents, two were related to pinched

fingers and one incident was related to a snapped rope.

SalMar continuously strives for best practice to limit work-related

injuries. Continued focus on our internal industrial safety capability is

important to further reduce the number of personal injuries in 2024.

All segments and/or facilities of the Group have a health and safety

representative or committee with worker representatives, and two

safety inspections are carried out in each department every year. In

2023, these inspections uncovered important areas for improvement

to further reinforce workplace safety.

All serious personal injuries are investigated to prevent similar inci-

dents occurring in the future. In collaboration with DNV GL, our central

technical staff department have developed company-specific tools

to enable it to investigate such incidents. Nevertheless, prevention

remains the most important factor. At SalMar, we place great emphasis

on ensuring that hazardous operations are well planned. Operational

plans are drawn up before any work commences and associated safe

work analyses (SWA) are performed for those taking part. The mapping

of our overall risk is the most effective measure we can implement to

reduce the probability of injuries occurring.

HSE performance is followed up systematically through targets and

action plans. Based on overarching targets, each individual division and

department has defined its own local sub-targets. Management has

an obligation to monitor performance and evaluate progress, as well

as the need for new measures and focus areas. Safety is followed up

through weekly and monthly reviews by SalMar’s management teams.

Lessons learned and improvements are shared across all departments

by means of quality-assured reports. All employees are covered by

a company health service in the vicinity of their workplace. The Group

ensures that everyone receives the training necessary to perform

their tasks.

The Working Environment Committee also plays a key role in our HSE

activities. The committee comprises selected management represent-

atives along with nominated employees. The committee reports to

the Group’s governing bodies and the employees’ union organisations.

SalMar complies with national regulations also with regards to working

hours and sufficient rest. This is paramount to maintain SalMar's strict

demands for safe operations.

We are working actively to reduce the sickness

absence rate

The sickness absence rate continued to be an area of intense focus

in 2023. The sickness absence rate continued to improve for the

Group in 2023, but is still some way off our target. Bringing the

overall sickness absence rate down towards our company goal will

be a continued focus area for 2024.

H-factor Norway

4.5

H-factor Iceland

3.0

Sustainability and Corporate Responsibility People & Society

Society and Value Chain

SalMar has a global supply chain both upstream and downstream,

which entails a responsibility to ensure and promote social standards

and rights in all our activities, both direct and indirect. SalMar endorses

wholeheartedly the principles set out in the Universal Declaration

of Human Rights. All aspects are considered closely, and the most

relevant for our operations (direct and indirect), are included in the

Group’s Code of Conduct and other governing documents.

SalMar complies fully with the Norwegian Transparency Act that

entered into force in July 2022. This involves proper due diligence

of our suppliers on human rights and working conditions. The Act

is a strong initiative regarding business transparency and work on

human rights aspects.

SalMar performs due diligence on human rights as a core part of

the company's supply chain due diligence process. In 2022, SalMar

purchased and applied a dedicated software for supply chain man-

agement. The software enables initial evaluations of human rights

risk based on companies' industry, geography and known suppliers.

SalMar's due diligence process involves a self-assessment question-

naire where suppliers are asked to answer inquiries related to their

practices and history on human rights, worker’s rights, health and

safety, governance, tax, and their own supply chain management

processes. The questionnaire answers and the risk assessment done

by SalMar's dedicated software, together determine the companies

relevant for closer follow-ups. The dialogue with suppliers continues

until the identified risks are sufficiently handled. Overall, suppliers are

audited on social responsibility certifications, health and safety certi-

fications, employee contractual agreements and policies, procedures

and events related to human rights in own operations and in the value

chains including forced labor, child labor, fair wages, events of harass-

ment, abuse, threats or violence, specific risk assessments for young

workers, right to collective bargaining, freedom of association, freedom

of unionization without the company's involvement, discrimination,

compliance with the ILO conventions relating to working hours and

documentation of any breaches, paid overtime work, workers' rights

to vacations and paid leave, established grievance mechanisms, health

and safety risks, mitigating actions and nonconformance reporting,

corruption, fair competition, tax breaches, and clarity on any specific

ESG-related matter.

The suppliers are audited on whether they audit their own suppliers

on each of the topics mentioned above. We also audit ourselves on

the same standards.

In our 2022 due diligence process, two potential breaches of human

rights were identified. Both incident were related to our suppliers'

own value chains, specifically two suppliers in China. The first risk was

a breach of maximum allowed working hours and the risk is mitigated

and monitored by third-party audits on the ground. The second risk

was related to a potential breach of indigenous people's rights, and

the resulting mitigating action was the termination of the business

agreement with this supplier. No risks of human rights breaches were

found in our own operations.

A full statement on findings of our 2022 due diligence assessment can

be found on our website, in accordance with the Norwegian Transpar-

ency Act. The results of the 2023 assessment will be published in line

with the annual deadline of the Transparency Act, 30th of June 2024.

For additional information on the topic, please see SalMar’s Human

Rights Policy and Whistleblowing Policy on our webpage.

SalMar has a presence in local communities along the Norwegian coast

and is attentive to developments in villages and local districts. Today,

we have operations along the coast of Central Norway, Northern

Norway and the Westfjords region of Iceland. It is important for our

employees that the local communities in which they live have the

necessary infrastructures and opportunities for leisure activities. For

SalMar, it is crucial that the Group is able to operate at locations offer-

ing good growing conditions for our fish stocks. It is also important

for SalMar to participate in local arenas for the exchange of views and

information, and to take part in planning processes.

Salmon farming is still considered a young industry, and it is important

to ensure that local decision-makers and other local residents are

informed about our operations and plans for development. Through

active participation in business associations and the public debate,

SalMar contributes to important sustainable development processes

in Norway and Iceland.

We support and sponsor the local communities in

which we operate

To give something tangible back to the local communities in which

the Group operates, SalMar supports several local sports teams and

voluntary associations through the SalMar Fund. Overall, the fund

gives priority to sporting and cultural initiatives, particularly those

involving children and young people.

SalMar also supports several national charities and campaigns, such

as the Norwegian Cancer Society and WWF’s efforts to combat

ocean plastic.

SalMar continues its collaboration with the Norwegian Labour and

Welfare Administration (NAV) to recruit people with shorter résumés

to jobs at the InnovaMar harvesting and secondary processing

plant in Frøya.

Sustainability and Corporate Responsibility People & Society

In 2013, SalMar became a sponsor of the football club Rosenborg

Ballklubb (RBK). This partnership was expanded in the start of 2023

to also encompass Rosenborg Kvinner, an aspiring female football club

in the Norwegian top division. The partnership also includes a sep-

arate programme for children and teenagers, and the development

of grassroots football clubs in Trøndelag. RBK has highlighted the

partnership through the SalMar Sports Ground and the SalMar Acad-

emy. The objective is to help transfer competence from Rosenborg to

grassroots clubs in Trøndelag County in the form of engaging training

sessions to promote player and trainer development.

We operate visitor centres so that the public can

learn more about aquaculture

SalMar wishes to increase the public knowledge about the aquacul-

ture industry and the target audience includes locals, tourists and

schoolchildren. Through exciting experiences on shore and at sea,

the public will gain greater insight into a modern and sustainable

industry. A visit to one of SalMars visitor centers includes an inter-

active exhibition about fish farming in Norway, and visitors can see

the high-tech solutions used to remotely feed the salmon. In addition,

centers typically feature a modern kitchen where visitors can learn

how easy it is to prepare delicious salmon meals. Visitors also have

the opportunity to take a trip out to a sea farm, to see with their own

eyes how and where the salmon live.

Today SalMar with subsidiaries have six visitor centres open to the

public. In 2017, a visitor centre, the SalMar Salmon Centre, opened

in Finnsnes/Lysnes in Northern Norway. In 2022, SalMar opened

another visitor centre in Molde in Central Norway. The visitor centre

from Refsnes Laks is located in Trondheim and the visitor centre from

Nekton is located on the Smøla archipelago. Through the acquisition of

SalmoNor and NRS two additional visitor centres have been included

in the group, one in Rørvik in Trøndelag County and Laksens Hus in

Alta in Finnmark county.

We ensure safe road transport

At certain times every winter in Norway and Iceland, the weather

makes the roads impassable, and we experience hazardous situations

due to heavy goods vehicles not having the proper tyres/chains. We

have therefore introduced control measures and routines. As a buyer

of transport services, SalMar demands that its suppliers meet certain

standards. To transport salmon from our production facilities and har

vesting plants, the transport service provider must sign a declaration

stating that they comply with the Norwegian Public Roads Administra-

tion’s technical requirements for vehicles in Norway. They also commit

to familiarise themselves with the prevailing driving conditions on the

roads they will be using.

Together with the Norwegian Public Roads Administration, SalMar is

a participant in the “Safe Trailer” project. This project is intended to help

equip heavy vehicles to cope better with winter driving conditions in

Norway and will lead to increased safety for all. Specifically, the project

involves Norwegian Public Roads Administration staff teaching our

employees how to check that tyres and chains are in order, as well as

providing useful information to the company’s employees and drivers.

In addition, our staff assess whether the trailer is in a technically accept-

able condition and whether the driver is “competent” to drive it. In the

event of any non-conformance, necessary measures are implemented.

Our financing is linked to our

sustainability endeavours

In 2023 SalMar ASA refinanced its credit facilities with a new financing

agreement with the intention of making it sustainability linked. SalMar

achieves a lower interest margin if we succeed and a higher interest

margin if we fail to fulfil the targets for the ESG KPIs. Since the financing

was concluded in August 2023 the ESG KPIs linked to the financing

will be agreed upon in 2024.

In addition, SalMar issued a green bond at the start of 2021, with the

funds raised being used in accordance with the published green bond

framework. SalMar publishes a Green Bond Report annually on our web-

page showing that the green bond’s funds were invested solely in areas

that contribute to the sustainable development of the company and

the industry at large. See SalMar’s website for further details. As part

of our financing, SalMar is committed to align its capital expenditures

with its GHG emission targets.

We comply with the regulations

The aquaculture industry is strictly regulated, and companies must

comply with applicable laws and regulations. SalMar reports the num-

ber of regulatory violations that have resulted in fines. This includes

all violations relating to products and food safety, environmental and

social regulations that resulted in monetary fines.

SalMar's Anti-Corruption and Bribery Policy and Anti-Competitive

Behaviour Policy, Policy states how SalMar works to stay compliant

with relevant regulations and proper business practices. There were

no violations relating to corruption or anti-competitive behaviour in

2023, nor did SalMar identify such events in its supply chain.

Please see Note 4.9 to the annual financial statements for information

concerning allegations of price fixing.

Sustainability and Corporate Responsibility GRI Index and Third-Party Verification

GRI Index and Third-Party Verification

Each year, SalMar reports on its activities in the field of corporate social responsibility and sustainability

on the basis of the guidelines issued by the international organisation, the Global Reporting Initiative

(GRI). Reporting takes place via this report, SalMar’s annual report and other information published on

our website.

The sustainability reporting for 2023 includes data for a number of disclosures drawn from GRI’s guide-

lines. An overview of which indicators the report covers is presented in a separate publication on

our webpage.

EY has carried out a limited third-party verification of the 2022 report. The KPIs in the report that have

been verified, along with accompanying comments, are presented below.

Third-party verification

The following shows the KPIs that have been the subject of third-party verification by EY.

People & Society

KPI Indicator

Safety & sickness

absence

LTI – Own employees 403-9

LTI – Subcontractors 403-9

H-factor 403-9

Sickness absence 403-10

Fish

KPI Indicator

Survival rate

12-month rolling survival rate GSI

Antibiotics

Grams of active

pharmaceutical ingredient

(API/tonne produced)

GSI

Interaction

with wildlife

Birds – Accidental mortality GSI

Birds – Euthanised GSI

Marine mammals –

Accidental mortality GSI

Marine mammals – Euthanised GSI

Fish escapes

No. of incidents GSI

No. of escaped fish GSI

Fish feed

Certification of marine

ingredients in fish feed Own KPI

Certification of soya

ingredients in fish feed Own KPI

FFDR (Fish meal) Own KPI

FFDR (Fish oil) Own KPI

Biological feed conversion ratio Own KPI

Certification Share of active sites certified GSI

Environment & Technology

KPI Indicator

Greenhouse gas

(GHG) emissions

Scopes 1 + 2 (GHG tCO

e) 305-1+2

Intensity Scopes 1+2

(kgCO

e/tonne produced)

305-4

Scope 3 (GHG tCO

e) 305-3

Intensity Scope 3

(kgCO

e/tonn produced) 305-4

Intensity Scopes 1+2+3

(kgCO

e/tonne produced)

305-4

Secondary

processing

Share of secondary processing Own KPI

Site environment B-analysis benthic score ≤ 2 Own KPI

Operational

areas with low

water risk

Share of operational areas

with a low overall water risk

303-5

Withdrawal of

fresh water

Withdrawal (1,000 m

) 303-5

Intensity (liter per kg produced) Own KPI

Corporate Governance at SalMar ASA 74

Executive Management 82

Board of Directors 84

Shareholder Information 86

Report of the Board of Directors 88

Corporate

Governance

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

Corporate Governance at SalMar ASA

SalMar ASA aims to maintain a high standard of corporate

governance. Good corporate governance strengthens

public confidence in the company and contributes to long-

term value creation by regulating the reciprocal roles and

responsibilities of shareholders, the Board of Directors and

the company’s management, over and above that which is

provided in laws and other regulations.

Corporate governance at SalMar shall be based on the following

main principles:

• All shareholders shall be treated equally.

• SalMar shall maintain open, relevant and reliable

communications with its stakeholders, including

shareholders, public authorities and the general public, on

matters relating to its business.

• SalMar’s Board of Directors shall be autonomous and

independent of company management.

• A majority of board members shall be independent of the

company’s majority shareholder.

• SalMar shall have a clear allocation of roles and

responsibilities between shareholders, the Board

and management.

1. Corporate Governance

Compliance and regulations

SalMar’s Board of Directors have overall responsibility for ensuring

that the company has adequate corporate governance. The compa-

ny’s Board and management perform a thorough annual assessment

of its principles for corporate governance.

SalMar is a Norwegian public limited company listed on the Oslo Stock

Exchange. The company is subject to section 3-3b of the Norwegian

Accounting Act, pursuant to which the company must annually disclose

its principles and practices with respect to corporate governance. In

addition, the company is subject to the Oslo Stock Exchange’s require-

ments for an annual statement of its principles and practices with

respect to corporate governance. This disclosure shall cover each

chapter in the prevailing Norwegian Code of Practice for Corporate

Governance (code of practice) issued by the Norwegian Corporate

Governance Board (NUES). The Oslo Stock Exchange’s Continuing

Obligations provide an overview of the information that must be

included in the disclosure. The Norwegian Accounting Act is available

from www.lovdata.no, while the Continuing Obligations are available

from www.oslobors.no.

SalMar complies with the current Code of Practice for Corporate Gov-

ernance, published 14 October 2021. The code of practice may be

found at www.nues.no.

Application of the code of practice is based on the ‘comply or explain’

principle, which means that the company must provide an explanation

if it elects an approach different to that recommended in the code

of practice.

SalMar issues a comprehensive statement of its principles for corporate

governance in its annual report, and this information is also available

from www.salmar.no. This present statement describes how SalMar

has conducted itself with respect to the code of practice in 2023

Deviations from the code of practice: Reference is made to item 6.

2. Business and Purpose

SalMar is one of the world’s largest producers of farmed salmon.

As at 31 December 2023, the company owned licences for marine

production of 167,112 tonnes maximum allowable biomass (MAB)

in Norway. This includes 6 time-limited demonstration licences and

4 broodstock licences covering 780 tonnes MAB each and 7,151

tonnes MAB in development licences. In addition, the company has

6,240 tonnes MAB development licences through the Mariculture AS.

SalMar has substantial secondary processing and sales activities in

Frøya at InnovaMar, Senja at InnovaNor and Aukra at Vikenco, as well

as six sales offices in Asia.

In 2021 SalMar entered into a strategic partnership with Aker establish-

ing SalMar Aker Ocean. The company has ambition to become a global

offshore aquaculture company with an ambition of 150,000 tonnes.

At the end of 2023, SalMar owned 52.48 per cent of the Icelandic aqua-

culture company Icelandic Salmon, which harvested 17,900 tonnes

of salmon in 2023 and holds 23,700 tonnes MAB in licence capacity.

7474

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

SalMar owns 50 per cent of Norskott Havbruk AS, which in turn

owns 100 per cent of Scottish Sea Farms Ltd, the UK’s second larg-

est producer of salmon, with an annual capacity of around 45,000

tonnes of salmon.

SalMar ASA’s objectives are defined in Article 2 of its articles of

association:

“The objective of the company is fish farming, the processing and

trading of all types of fish and shellfish, and other financial activities

related thereto. The company may, in accordance with directives

from the relevant authorities, undertake general investment activi-

ties, including participation in other companies with similar or related

objectives.”

SalMar’s Board of Directors has drawn up clear objectives and strate-

gies for the Group to secure optimal value creation for its shareholders

and other stakeholders. Each business area has developed its own

goals in line with these, and strategic priorities have been defined.

Within the framework of the above article, SalMar is currently engaged

in broodstock and smolt production, marine-phase farming, harvesting,

processing and sale of farmed salmon. The Board also defines risk and

sustainability profiles for the Group and ensures that these support

value creation for its shareholders, and the board evaluates the risk

profile annually.

The company’s objectives and main strategies are further discussed

in the annual report and can be found on the company’s website

www.salmar.no.

Corporate values, code of conduct and social

responsibility

SalMar’s corporate culture is based on the success factors that

have underpinned its development since its establishment in 1991.

Although this culture is affected by both internal and external frame-

work conditions, it is firmly embedded in certain overarching principles,

such as sustainability, equality, quality, care for the environment, focus

on work tasks and continuous improvement.

Underpinning all of SalMar’s actions and business operations is its

vision: “Passion for Salmon”. This means that all choices relating to

the company’s production shall be made on the basis of a passion for

salmon. Salmon shall be produced on its own terms. SalMar considers

that the best biological results will provide the basis for the best finan-

cial results, and will safeguard SalMar’s position as the world’s most

cost-effect salmon producer.

SalMar has two main principles: minimizing our environmental impact

in the areas we operate, and to maximize value creation from the

fish we produce. One of our most important tenets is “sustainability

in everything we do”. Sustainable food production is an issue that

has gained increased significance and focus. SalMar is engaged in

a number of initiatives which will help make our already sustainable

food production even more sustainable. See our latest sustainability

report for further details.

SalMar has a set of tenets that describe desired behaviours and

a shared understanding of how employees should behave. Through

the SalMar School and day-to-day exposure to SalMar’s corporate and

performance culture, all employees are given encouragement and

opportunities for development. For more information on the SalMar

culture, please see the annual report and the company’s website

www.salmar.no.

SalMar has drawn up a code of conduct and social responsibility, whose

purpose is to safeguard and develop the company’s values, create

a healthy corporate culture and uphold the company’s integrity. The

code of conduct is also meant to be a tool for self-assessment and

for the further development of the company’s identity. All employees

of the company are bound to comply with the ethical guidelines laid

down in the code of conduct. The reporting of any wrongdoing or

other causes for concern is covered by specific procedures, which

also allow employees to report anonymously through an external

channel. The code of conduct is available from the company’s website

www.salmar.no.

SalMar has a presence in many local communities. The Group is there-

fore very aware of the diverse nature of its social responsibilities: as an

employer, an industrial processor, a producer of healthy food, as a cus-

todian of financial and intellectual capital, and – not least- as a user

of the natural environment. Increased biological control is one of the

company’s most important focus areas, and is a material prerequisite

for long-term success. The company is, among other things, working

actively to safeguard fish welfare and prevent salmon from escaping.

One of the company’s most important tenets is ‘We care’. This per-

meates the SalMar culture, and ensures a high degree of awareness

among employees, both internally and externally, in the areas in which

the company operates.

Deviations from the code of practice: None

3. Equity and Dividend

Equity

As at 31 December 2023, the group’s equity totalled NOK 23,079

million, which corresponds to an equity ratio of 43.3 per cent. The

Board considers SalMar’s capital structure to be solid in relation to

the company’s objectives, strategy and risk profile.

Dividend policy

SalMar intends to provide shareholders with a competitive return

on invested capital by creating value for shareholders in the form of

dividends and share price appreciation over time.

7575

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

SalMar’s dividend policy takes as its starting point that the company

shall at all times have a robust balance sheet and a liquidity reserve

that is sufficient to meet future obligations.

The company has established long-term financial targets linked to

gearing: NIBD

in relation to EBITDA in the interval 1.0–2.5. Provided

that the company is within these limits, and taking account of future

investments, the intention is to pay out surplus liquidity in the form

of a dividend or the buyback of treasury shares. Provided the Annual

General Meeting (AGM) approves, the aim is to make annual payments

of dividend. The company will also consider the buyback of treasury

shares within the authorisation limits granted to the Board by the AGM.

For the 2023 financial year, the Board proposes payment of a dividend

corresponding to NOK 35.00 per share. This proposal is based on the

Board’s assessment that company’s has demonstrated its capacity

to adapt to changing market and regulatory conditions, delivering

strong results and successfully completing large transactions, while

maintaining a solid financial position with a strong liquidity reserve.

Board authorisations

Authorisations granted to the Board are normally time limited, and

are valid only up until the next AGM and no later than 30 June the

following year.

The AGM of 8 June 2023 granted the Board four authorisations: to

increase SalMar’s share capital, to issue convertible loans, to buy

back SalMar’s own (treasury) shares and to acquire own shares in the

market. These were extensions of authorisations granted by the AGM

in 2022. In line with the Norwegian Code of Practice for Corporate

Governance, each of the authorisations was considered separately.

1 NIBD includes liabilities in accordance with IFRS 16 and EBITDA is without fair

value adjustment, onerous contracts and production tax

The authorisation for the Board to increase the company’s share

capital was limited to NOK 1,814,236.50, through the issue of up

to 7,256,946 shares to finance investments and the acquisition of

businesses through cash issues and contributions in kind.

The second authorisation allows the Board to issue convertible loans

for up to NOK 3,000,000,000 for the purpose of enabling SalMar, at

short notice, to use such financial instruments as part of its overall

financing requirement. In connection with the conversion of loans

raised pursuant to this authorisation, SalMar’s share capital may be

increased by up to NOK 1,814,236.50, though with account taken

of any capital increases undertaken pursuant to the authorisation to

increase SalMar’s share capital, such that the total capital increase

for both authorisations combined may not exceed 5 per cent of the

share capital. It follows from the purpose of the authorisations that

the Board may need to waive existing shareholders’ preference rights.

The third authorisation allows the Board to acquire up to 14,513,892

treasury shares with an aggregate par value of up to an aggregate

of NOK 3,628,473 at a price per share of no less than NOK 1 and no

more than NOK 1,000. The rationale for the Board’s proposal was that

such arrangement would amongst other things give the Board an

extended possibility to utilise mechanisms for distribution of capital to

SalMar’s shareholders and to facilitate an adequate capital structure of

SalMar. Exercise of such authorisation was made subject to principles

of equal treatment of shareholders. To ensure that SalMar’s majority

owner’s, Kverva Industrier AS, proportionate shareholding remained

equal it was set in place an arrangement whereby any shares acquired

in the market would be cancelled through a subsequent share capital

decrease and that a corresponding part of Kverva Industrier AS’ shares

would be redeemed. The total capital increase for the third authorisa-

tion may not exceed 10 per cent of the share capital.

All board authorisations are valid up until the next AGM, which will

be held on 6 June 2024.

Deviations from the code of practice: None

4. Non-Discrimination of Shareholders and

Transactions With Closely Related Parties

As of 31 December 2023, SalMar ASA owned 278,854 treasury

shares, which accounts for 0.21 per cent of the company’s registered

share capital. Transactions involving treasury shares are undertaken

on the stock exchange or otherwise at the listed price.

In the event of not immaterial transactions with related parties, the

company shall make use of valuations and assessments provided by

an independent third party.

In the event of capital increases based on an authorisation issued

by a general meeting of shareholders, where the existing sharehold-

ers’ rights are waived, the reason for this will be provided in a public

announcement in connection with the capital increase as it was done

on the successful private placement that took place 8 June 2021.

SalMar’s code of conduct and regulations regarding insider trading set

out what is required of employees with respect to loyalty, conflicts

of interest, confidentiality and guidelines for trading in the compa-

ny’s shares. The code of conduct states that all employees must notify

the Board if they, directly or indirectly, have a material interest in any

agreement entered into by the company. Board members also have

a duty to comply with the company’s code of conduct.

SalMar’s Board Chair Gustav Witzøe is the company’s founder. He

indirectly owns 93.1 per cent of Kverva AS, which, through Kverva

Industrier AS, owns 45.4 per cent of the shares in SalMar ASA. Witzøe

is a member of the board of Kverva AS. The instructions regulating

the Audit and Risk Committee includes monitoring of the compa-

ny’s routines and follow-up of transactions between related parties.

7676

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

Transactions with related parties are disclosed in Note 4.8 to the

2023 consolidated financial statements.

Deviations from the code of practice: None

5. Free Transferability

SalMar has only one class of shares and all shares have equal rights.

Each share has a face value of NOK 0.25 and carries one vote.

The company’s shares are freely transferable on the Oslo Stock

Exchange, and its articles of association do not contain any restric-

tions on the right to own, trade or vote for shares in the company, as

long as the regulations governing insider trading are complied with.

Deviations from the code of practice: None

6. General Meeting of Shareholders

The company’s highest decision-making body is the General Meeting

of Shareholders.

General meetings are open to participation by all shareholders. Pursu-

ant to Article 7 of the company’s articles of association, the Annual

General Meeting must be held by the end of June each year in Oslo,

Trondheim or Kverva in the municipality of Frøya.

The 2024 AGM will be held on 6 June 2024 at the company’s head

office in Frøya.

An invitation to attend the AGM or an EGM will be issued no later than

21 days prior to the date of the meeting.

In accordance with the company’s articles of association, documents

relating to matters to be addressed at a general meeting of share-

holders may be made available on SalMar ASA’s website. The same

applies to documents which by law must be included in or attached

to the invitation to attend the general meeting. If the documents are

made available in this way, the statutory requirement with respect

to distribution to shareholders is not applicable. A shareholder may

nevertheless ask to be sent documents relating to matters to be

discussed at a general meeting by post. Case documents must con-

tain all the documentation necessary to enable shareholders to take

a standpoint on all matters to be addressed. Pursuant to section 5-11

of the Public Limited Companies Act, shareholders are also entitled

to table their own items for consideration by the general meeting.

The deadline for notification of shareholders’ intention to attend

a general meeting is stipulated by the Board of Directors in the invi-

tation thereto, no less than five days prior to the date of the meeting.

Shareholders may send notification of their attendance, using the

form provided, by post or email to the company’s account manager

Nordea Bank Norge AS, or via the company’s website www.salmar.no.

Shareholders are entitled to make proposals and cast their votes

either in person or through a proxy, including a proxy appointed by

the company. The proxy form also enables shareholders to grant

a proxy vote for each individual agenda item and in connection with

the election of each board member.

Shareholders are entitled to cast their votes on each individual item

on the agenda, including each individual Director nominated to the

Board or members for the Nomination Committee.

The Board determines the agenda for the meeting, and the main

issues to be dealt with by the AGM are regulated by Article 9 of

the company’s articles of association and section 5-6 of the Public

Limited Companies Act.

The Board Chair and the company’s auditor will be represented at

general meetings, which will normally be chaired by the Board Chair.

Other members of the Board of Directors and members of the Nomi-

nation Committee may in addition be represented at general meetings.

The present Board Chair, Gustav Witzøe, is a member of the board of

Kverva AS, SalMar’s majority shareholder through its ownership in

Kverva Industrier AS. Nevertheless, SalMar considers its Board Chair

to be best suited to chair general meetings. In the event of any disa-

greement on individual agenda items where the Board Chair belongs

to one of the factions, or for some other reason is not deemed to be

impartial, a different person will be selected to chair the meeting in

order to ensure independence with respect to the matters concerned.

The company will publish the minutes of general meetings of share-

holders in accordance with stock exchange regulations.

Deviations from the code of practice: It is considered from time to time

whether the entire Board of Directors and the Chair of the Nomination

Committee will be present at the general meetings.

7. Nomination Committee

Article 8 of the company’s articles of association stipulates that the

Nomination Committee shall comprise a total of three people, who

shall be shareholders or shareholders’ representatives. The Nomination

Committee’s composition shall be such that the interests of share-

holders as a community are upheld, and the majority of committee

members shall be independent of management and the Board. The

members of the Nomination Committee, including its chair, are elected

by the AGM for a term of two years. Members may be re-elected. To

ensure continuity, members’ terms of office shall not coincide. The

remuneration payable to members of the Nomination Committee is

determined by the AGM. A set of regulations governing the work of

the Nomination Committee was adopted at the board meeting of 21

March 2007 and updated at the AGM in 2014.

7777

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

As at 31 December 2023, the Nomination Committee comprise of

the following:

• Bjørn Wiggen, Chair

• Endre Kolbjørnsen (up for election in 2024)

Karianne O. Tung was appointed member of the Norwegian govern-

ment and resigned from her position as member of the Nomination

Committee 16th of October 2023. A new member to the Nomination

Committee will be elected at the AGM in 2024.

The Nomination Committee shall make a recommendation to the AGM

with respect to candidates for election to the Board of Directors and

Nomination Committee, as well as propose the remuneration payable

to the members of the Board and the Nomination Committee. In

its work, the Nomination Committee shall take into consideration

relevant statutory requirements with respect to the composition of

the company’s governing bodies, as well as principles for corporate

governance laid down in the Norwegian Code of Practice for Corporate

Governance drawn up by NUES. Proposals for members of the Board

and Nomination Committee should safeguard the shareholder com-

munity’s interests and the company’s need for competence, capacity

and diversity. The Nomination Committee has a dialogue with each

of the board members yearly.

The Nomination Committee draws up criteria for the selection of

candidates for the Board and Nomination Committee, in which both

genders should be represented. The Nomination Committee should,

over time, balance the requirements for continuity and renewal in the

individual governing body. Relevant candidates must be asked whether

they are willing to undertake the office of director or deputy director.

The committee should base its recommendations with respect to

the remuneration payable on (a) information about the size of the

remuneration paid to elected officers in other comparable companies,

and (b) on the scope of work and the amount of effort the elected

officers are expected to devote to the task on behalf of the company.

The Nomination Committee’s recommendation to the AGM must be

published in good time, so that it can be communicated to the share-

holders before the meeting takes place. The recommendation shall

accompany the invitation to attend the AGM, no later than 21 days

before the meeting takes place. The committee’s recommendation

shall contain information about the candidates’ independence and

competence, including age, education and work experience. If relevant,

notice shall also be given about how long the candidate has been an

elected officer of the company, any assignments for the company,

as well as material assignments for other group companies that may

be of significance.

Proposals to the Nomination Committee

All shareholders are entitled to propose candidates for the Board or

other elected offices to the Nomination Committee. Such proposals

must be submitted to the Nomination Committee no less than six

weeks prior to the company’s AGM. All proposals shall be sent by email

to the Nomination Committee’s chair. Contact details are available

from the company’s website www.salmar.no.

Deviations from the code of practice: None

8. Board of Directors, Composition and

Independence

Pursuant to Article 5 of SalMar’s articles of association, the Board of

Directors shall comprise of five to nine members, to be elected by the

AGM. The Board Chair is elected by the AGM. The company’s current

board is made up of seven members, including two employee repre-

sentatives. Three out of seven of the company’s directors are women,

including one female employee representative.

The regulations governing the work of the Nomination Committee

state that emphasis shall be placed on ensuring that board mem-

bers have the necessary competence to carry out an independent

assessment of the matters presented to it by management and of

the company’s business activities. Emphasis shall also be placed on

ensuring that there is a reasonable gender balance and that direc-

tors are independent with respect to the company. The Nomination

Committee’s recommendation shall meet the requirements relating

to board composition stipulated by applicable legislation and the

regulations of the Oslo Stock Exchange. Board members are elected

for a term of two years and may be re-elected. An overview of the

individual directors’ competence and background is available from the

company’s website www.salmar.no.

Through decades of expertise from the aquaculture industry three

of the Board members (Gustav Witzøe, Leif Inge Nordhammer and

Margrethe Hauge) has expertise within sustainability and food safety

for the industry. In addition both Margrethe Hauge and Morten Loktu

both have expertise within product development and innovation.

As at 31 December 2023, four shareholder elected board members,

Gustav Witzøe, Leif Inge Nordhammer, Arnhild Holstad and Morten

Loktu owned shares in SalMar. And one of the employee-elected

board members owned shares in SalMar. See company’s website

www.salmar.no and Note 4.2 to the 2023 consolidated financial

statements for further details.

Independence of the Board

SalMar’s Board of Directors is composed such that it is able to act

independently of any special interests. Board Chair Gustav Witzøe

is also a member of the board of Kverva AS, the company’s majority

shareholder through its owner share in Kverva Industrier. Further, Leif

Inge Nordhammer is also a member of the board of Kverva AS. These

two are therefore not deemed to be independent. The remaining

7878

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

directors are deemed to be independent of senior executives, mate-

rial business associates and the company’s largest shareholders. In

matters of material importance in which the Board Chair is, or has

been, actively engaged, another director is appointed to chair the

Board’s deliberations. No such matters have been addressed in 2023.

Deviations from the code of practice: None

9. The Board of Directors

The Board of Directors has overall responsibility for the management

of the Group and the supervision of its day-to-day management

and business activities. Furthermore, the Board determines the

Group’s overall objectives and strategy, including the overall com-

position of the Group’s portfolio and the business strategies of the

individual business unit. The board is formally mandated to oversee

all Sustainability/ESG issues. The work of the Board is governed by

a set of regulations which describe the Board’s responsibilities, tasks

and administrative procedures. The Board has also prepared a set of

instructions for the group management team that clarifies its duties,

lines of authority and responsibilities.

The regulations governing the Board’s working practices provide

guidelines for how individual directors and the CEO should conduct

themselves with respect to matters in which they may have a personal

interest. Among them is the stipulation that each director must make

a conscious assessment of his/her own impartiality, and inform the

Board of any possible conflict of interest.

The Board shall approve the Group’s plans and budgets. Proposals relat-

ing to targets, strategies and budgets are drawn up and presented by

management. Strategy is normally discussed during the autumn, ahead

of the Group’s budget process. Within the area of strategy, the Board

shall play an active role in setting management’s course, particularly

with regard to organisational restructuring and/or operational changes.

The Board meets as often as necessary to perform its duties. In 2023,

the Board held 12 meetings, of which 6 were held digitally. The overall

attendance rate at board meetings was 100 per cent.

The Board makes an annual assessment of its own work

and competence.

Audit and Risk Committee

Pursuant to the Public Limited Companies Act, SalMar has a board-ap-

pointed Audit and Risk Committee. The committee’s main tasks are to

prepare the Board’s follow-up of the financial reporting process, moni-

tor the Group’s internal control and risk management systems; monitor

its routines and follow-up of transactions with related parties; and

maintain an ongoing dialogue with the auditor. The committee held

8 meetings in 2023, with an overall attendance rate of 100 per cent.

With effect from 1 January 2021, the committee has been given

broader responsibilities. This has been prompted by changes in the

Norwegian Auditing Act and implementation of EU directives. The

Board has updated the committee’s instructions accordingly.

The Audit and Risk Committee also monitors the routines and fol-

low-up procedures of transactions towards related parties.

At least one committee member must be independent of the business.

If the committee has more than two members, a majority must be

independent of the business.

As at 31 December 2023, the Audit and Risk Committee comprised

the following:

• Margrethe Hauge (independent), chair

• Morten Loktu (independent)

Deviations from the code of practice: None

10. Risk Management and Internal Control

The Board is responsible for ensuring that the company’s risk man-

agement and internal control systems are adequate in relation to

the regulations governing the business. The company’s systems and

procedures for risk management and internal control are intended to

ensure efficient operations, timely and correct financial reporting,

as well as compliance with the legislation and regulations to which

the company is subject. The Board performs an annual review of the

company’s risk management/corporate governance.

The most important risk factors for the company are biological risk

associated with the biological situation in its hatcheries and sea farms,

as well as the risk of fish escaping therefrom, and financial risk (fluc-

tuations in salmon prices, foreign exchange, credit and interest rate

risk). In addition, greater emphasis has been placed on IT security and

the development of technologies and solutions to secure continued

sustainable growth in the field of sustainable food production. These

risk factors are monitored and addressed by managers at all levels in

the organisation. For further information, please see the Annual Report

for 2023. It is the CEO’s responsibility to ensure that the company

operates in accordance with all relevant statutes and guidelines.

Internal control of financial reporting is achieved through day-to-day

follow-up by management and process owners, and supervision by

the Audit and Risk Committee. Non-conformances and improvement

opportunities are followed up and corrective measures implemented.

Financial risk is managed by a central unit at head office, and, where

appropriate, consideration is given to the use of financial hedging

instruments.

7979

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

Follow-up and control of compliance with the company’s values and

code of conduct takes place in the line as part of day-to-day operations.

The largest risk facing SalMar relates to the biological development

of its smolt and marine-phase fish stocks. The company has internal

controls which encompass systematic planning, organisation, perfor-

mance and evaluation of the Group’s activities in accordance with both

public regulations and its own ambitions for continuous improvement.

The Group has, for example, drawn up shared objectives for its internal

control activities relating to the working environment and personal

safety, escape prevention, fish welfare, pollution, food safety and

water resources. Please see the annual report for further details.

Deviations from the code of practice: None

11. Directors’ Fees

The Nomination Committee’s proposal for the remuneration payable to

the Board of Directors is approved or rejected by the company’s AGM.

Directors’ fees shall reflect the Board’s responsibilities, competence,

time spent and the complexity of the business.

Directors’ fees are not performance-related and contain no share

option element. Additional information relating to directors’ fees

can be found in the notes to the financial statements included in the

Annual Report for 2023.

In accordance with Section 6-16b of the Public Limited Companies

Act, a separate report describing remuneration to management and

directors in 2023 will be presented to the AGM for approval.

Deviations from the code of practice: None

12. Remuneration to Senior Executives

Pursuant to Section 6-16a of the Public Limited Companies Act, the

Board of Directors has prepared a statement relating to the determi-

nation of salaries and other benefits payable to senior executives.

This statement will, in line with the said statutory provision, be laid

before the company’s AGM in accordance with the existing regulations.

The company’s senior executive remuneration policy is based pri-

marily on the principle that executive pay should be competitive

and motivating, in order to attract and retain key personnel with the

necessary competence.

The statement refers to the fact that the Board of Directors shall

determine the salary and other benefits payable to the CEO. The salary

and benefits payable to other senior executives are determined by

the CEO in accordance with the guidelines laid down in the statement.

The existing compensation scheme is divided into three and comprises

a fixed salary, a performance-related bonus and a share-based incen-

tive scheme in line with the Board’s authorisation.

At the 2023 AGM, the statement on executive remuneration was

set forth as a separate case document, which is available from the

company’s website www.salmar.no. The AGM voted to approve the

establishment of a new share-based incentive scheme for senior

executives. The AGM approved separately the item relating to the

remuneration of senior executives linked to shares or developments

in the price of shares in SalMar or other group companies.

In accordance with Section 6-16b of the Public Limited Companies

Act, a separate report describing remuneration to management and

directors in 2023 will be issued and presented to the AGM for approval.

Deviations from the code of practice: None

13. Information and Communication

Investor relations

Communication with shareholders, investors and analysts is a high

priority for SalMar. The objective is to ensure that the financial markets

and shareholders receive correct and timely information, thus providing

the soundest possible foundation for a valuation of the company. All

market players shall have access to the same information, and all infor-

mation is published in both Norwegian and English. All notices sent

to the stock exchange are made available on the company’s website

and at www.newsweb.no.

SalMar seeks to comply with the Oslo Stock Exchange’s investor

relations recommendations, which includes a recommendation to

publish information to investors on companies’ websites. The com-

pany has, in line with the Norwegian Code of Practice for Corporate

Governance, also adopted an ‘IR Policy’, which is available from the

company’s website. The CEO, CFO and Investor Relations Manager

are responsible for communications with shareholders in the period

between general meetings.

Financial information

The company holds open investor presentations in association with

the publication of its year-end and interim results. These presenta-

tions are open to all and provide an overview of the Group’s oper-

ational and financial performance in the previous quarter, as well

as an overview of the general market outlook and company’s own

future prospects. These presentations are also made available on

the company’s website.

The company will continue to publish interim reports in line with the

Oslo Stock Exchange’s recommendation. Such interim results will

be published no more than 60 days after the close of each quarter.

8080

Corporate Governance Corporate Governance at SalMar ASACorporate Governance Corporate Governance at SalMar ASA

Quiet period

SalMar will minimise its contacts with analysts, investors and journal-

ists in the final three weeks before publication of its results. During this

period, the company will hold no meetings with investors or analysts

and will give no comments to the media or other parties about the

Group’s results and future outlook. This is to ensure that all interested

parties in the market are treated equally.

Financial calendar

Each year SalMar publishes a financial calendar indicating the dates of

publication of the Group’s interim reports and annual report, as well as

the date of its AGM. The calendar is available from the Group’s website

www.salmar.no. It is also distributed as a stock market notice and

updated on the Oslo Stock Exchange’s website www.newsweb.no.

The calendar is published before 31 December each year.

Icelandic Salmon AS

The subsidiaries Icelandic Salmon AS (previously named Arnarlax AS)

is listed on Euronext Growth on the Oslo Stock Exchange and NASDAQ

First North on the Icelandic Stock Exchange. Guidelines have been

drawn up with respect to the disclosure of information to ensure that

all shareholders in SalMar receive the same information (materiality)

as shareholders in Icelandic Salmon.

Deviations from the code of practice: None

14. Acquisition

The Board of Directors has drawn up guidelines with respect to take-

over bids, in line with the Norwegian Code of Practice for Corporate

Governance. The guidelines were adopted by the Board at a meeting

on 29 March 2011, and the Board undertakes to act in a professional

manner and in accordance with applicable legislation and regulations.

The guidelines shall ensure that the interests of shareholders are

safeguarded, and that all shareholders are treated equally. Further-

more, the guidelines shall help ensure that company operations are not

unnecessarily disturbed. The Board will strive to provide shareholders

with sufficient information to enable them to make up their minds

with respect to the specific bid.

If a takeover bid has been made, the Board will make a statement

and at the same time assess whether to obtain a valuation from an

independent expert. The Board will obtain an independent valuation if

a major shareholder, board member, member of the management team,

related party or any collaborator of such a related party, or anyone

who has recently held one or more of the above-mentioned positions,

is either the bidder or has a particular interest in the takeover bid.

The Board will not seek to prevent any takeover bid, unless the Board

is of the opinion that such action is justified out of consideration for

the company and the company’s shareholders. The Board will not

exercise any authorisations or adopt other measures for the purpose

of preventing the takeover bid. This stipulation may be waived only

with the approval of a general meeting of shareholders after a bid

has been announced.

Transactions which, in reality, involve the sale of the company’s busi-

ness shall be laid before a general meeting of shareholders for approval.

Deviations from the code of practice: None

15. Auditor

The company’s auditor is appointed by the AGM. Each year, the Board

of Directors shall receive written confirmation from the auditor that

the requirements with respect to independence and objectivity

have been met.

Each year, the auditor shall draw up a plan for the execution of their

auditing activities, and the plan shall be laid before and discussed by

the Audit and Risk Committee. The auditor shall meet with the Audit

and Risk Committee annually to review and evaluate the compa-

ny’s internal control activities.

The auditor shall hold at least one meeting each year with the Board of

Directors at which no representatives of the company’s management

are present. The auditor attends the board meeting at which the

year-end financial statements are considered. The auditor attends

the company’s AGM.

The Board shall inform the AGM of the remuneration payable to the

auditor, broken down into an auditing and other services component.

The AGM shall approve the auditor’s fees.

The company has drawn up guidelines to regulate the extent to

which it is permitted to use the auditor to perform services other

than audit-related services.

Deviations from the code of practice: None

8181

Corporate Governance Executive ManagementCorporate Governance Executive Management

Frode Arntsen

CEO

Frode Arntsen has been CEO since October 2022.

He started in SalMar in 2017 as COO, Industry and

Sales. He has a background from the Norwegian

Military, and is educated as a lecturer within man-

agement. He has worked in the seafood industry

since 2000, and has previously held senior/director

positions at Lerøy Midnor, HitraMat and Lerøy Midt.

Born: 1970

Shares: 6,962

RSU-rights: 9,131

Ulrik Steinvik

CFO

Steinvik started in the position as CFO in October

2021, prior to this he has held several leading posi-

tions in the executive management. Mr. Steinvik

holds the title as Norwegian state authorized

public accountant. Before Steinvik joined SalMar

in 2006 he served with Arthur Andersen Norway

and Ernst & Young AS from 1998 to 2006. He

graduated from the Norwegian School of Econom-

ics and Business Administration in 2002.

Born: 1974

Shares: 120,478. Owns 19,721 shares directly

and indirectly through personal related parties.

Also owns 100 per cent of the shares in Nord-

pilan AS. Nordpilan AS owns 0.17 per cent of the

shares in Kverva AS, which in turn through Kverva

Industrier AS owns 45.4 per cent of the shares

in SalMar ASA.

RSU-rights: 5,312

Roger Bekken

COO Farming

Roger Bekken took over as COO Farming on 4 June

2018. Mr Bekken has worked in the seafood sector

since 1991. He has held a variety of executive

positions in the industry. Before joining SalMar is

2014, he was COO of Farming at Norway Royal

Salmon (NRS). From 2014 until June 2018, Mr Bek-

ken was managing director at SalMar Farming AS.

Born: 1967

Shares: 14,509. 14,373 directly and 136 shares

indirectly through related parties.

RSU-Rights: 6,541

Simon Søbstad

COO Sales & Industry

Simon Søbstad took over as COO Sales & Industry

in October 2022. From January 2018 he held the

position as second in command Sales & Industry

and since he started in SalMar in 2007 he has

held several roles. Søbstad has education within

aquaculture and has worked in the seafood indus-

try since 2002.

Born: 1982

Shares: 604

RSU-Rights: 4,338

Executive Management

8282

Corporate Governance Executive ManagementCorporate Governance Executive Management

Eva Johanne Haugen

Director Quality Management/HSE

Eva Haugen has held the position as Director Qual-

ity Management/HSE since 2013. She has worked

in SalMar since 2001 where she has held several

leading positions within quality management. She

has several years of experience as a teacher in

secondary school subjects such as aquaculture,

science and biology. Haugen is a graduate from

NTNU in the fields of chemistry, biology and edu-

cation studies and holds a degree in ecotoxicology

and physiology in salmonids.

Born: 1971

Shares: 7,900

RSU-Rights: 3,233

Arthur Wisniewski

Director Human Resource Management

Wisniewski has worked at SalMar since 2016 and

took up the position as Director Human Resource

Management in 2018. He previously worked as HR

Manager in the company. Wisniewski came from

a similar position at German Wacker Chemicals

and has many years of experience working with

change and development processes within the

HR field as an advisor and consultant in both the

private and public sector. He has a Master’s degree

from NTNU in Science-Technology-Society studies

(STS), as well as a Bachelor’s degree in sociology

from the same university.

Born: 1978

Shares: 2,772

RSU-Rights: 3,888

Runar Sivertsen

Chief Strategy Officer

Sivertsen has worked at SalMar since 2010 and

took up the position as Chief Strategy Officer

in April 2020. He has previously worked as the

Investor Relations Officer and before that as an

analyst for the company. Sivertsen has a Master of

Science in Business degree from NTNU Business

School and has also completed The Solstrand

programme Accelerate.

Born: 1985

Shares: 4,509. 4,314 directly and 195 shares

indirectly through related parties.

RSU-Rights: 3,806

8383

Corporate Governance Board of DirectorsCorporate Governance Board of Directors

Gustav Witzøe

Chair of the Board

Gustav Witzøe joined the board of directors as

board chair in SalMar June 2022. Mr. Witzøe is the

co-founder of SalMar ASA. He holds a degree in

engineering. After several years as an engineer

he co-founded BEWI AS, a company producing

styrofoam boxes for the fish farming industry.

Mr. Witzøe held the position as managing director

of BEWI AS until 1990. Since Mr. Witzøe founded

SalMar ASA in 1991 he has gained extensive expe-

rience in fish farming and processing.

Mr Witzøe indirectly owns 93.02% of Kverva AS,

which in turn through Kverva Industrier AS owns

45.3% of the shares in SalMar ASA. Mr Witzøe is

also a director of Kverva AS.

Citizenship: Norwegian citizen, and

resident in Norway

Independent: No

Margrethe Hauge

Vice-Chair of the Board and Leader of the Audit

and Risk Committee

Margrethe Hauge is CEO of Goodtech ASA and has

held management positions within production,

supply chain, service and sales in aqua, agriculture,

maritime and oil & gas industries. She has held

positions as CEO at Teknisk Bureau AS, Regional

Managing Director – Nordic & Germany at MRC

Global Inc. and Executive Vice President Services

at TTS Group ASA. She has also held several man-

agement positions at Kverneland Group. Ms Hauge

started her career as trainee at Norsk Hydro ASA.

She is member of the board of Borregaard ASA

and Mesta AS. She holds a Master’s degree in Eco-

nomics & Business Administration, University of

Mannheim, Germany.

Nationality: Norwegian citizen, and

resident in Norway

Independent: Yes

Leif Inge Nordhammer

Board Member

Nordhammer was previously CEO in SalMar from 1996 to

2016, with a hiatus from 2011 to 2014. Today he works

in his investment company LIN AS and is board member of

Kverva AS. He has extensive experience from leadership

positions from several companies within aquaculture

and has been a part of the industry since 1985. Former

companies include Sparebank 1 Midt-Norge, E. Boneng

& Sønn, Frøya Holding AS/ and Hydro Seafood AS. Nor-

dhammer has educational background for Norwegian

Armed Forces, Trondheim Business School and University

in Trondheim. Nordhammer joined the board of SalMar

in June 2020.

Nordhammer owns indirectly 1.47% of the shares in

SalMar ASA. He owns 99.1% of LIN AS which directly

owns 1.01% of the shares in SalMar ASA and indirectly

LIN AS owns 0.45% of the shares in SalMar ASA through

its 1% ownershare in Kverva AS, which through Kverva

Industrier AS owns 45.4% of the shares in SalMar ASA.

Nationality: Norwegian citizen, and resident in Norway

Independent: No

Arnhild Holstad

Board Member

Arnhild Holstad joined the board of directors in

SalMar June 2022. She is the Regional Manager

at Statskog, and non-executive board member

in Helse Midt-Norge RHF. She has previously

been the mayor of Namsos for 6 years, and has

board experience from Sparebank1 SMN and NTE.

She has extensive experience from political and

executive positions within communication. She is

a graduate of the Norwegian School of Journalism,

Norwegian School of Sport Sciences and Norwe-

gian University of Science and Technology (NTNU).

Shares: Owns indirectly through related parties

3,346 shares in SalMar ASA.

Citizenship: Norwegian citizen, and

resident in Norway

Independent: Yes

Board of Directors

8484

Corporate Governance Board of DirectorsCorporate Governance Board of Directors

Morten Loktu

Board Member and member of the Audit and

Risk Committee

Morten Loktu joined the board of directors in

SalMar June 2022. He has held several senior

positions at Equinor as Vice President of Corpo-

rate Strategy, Senior Vice President (LEAN and

Operational Improvement), Senior Vice President

(Operations North) and Senior Vice President

(Research & Innovation). He was the CEO of

SINTEF for 3 years and Executive Vice President

of Statoil. He is a graduate of Norwegian Uni-

versity of Science and Technology. He is a board

member in SalMar Aker Ocean and Frøy.

Citizenship: Norwegian citizen, and

resident in Norway

Independent: Yes

Shares: 1,000

Ingvild Kindlihagen

Board Member Employee Representative

Ingvild Kindlihagen has a degree in Business

Economics from UiT and NHH, and has also stud-

ied for a year at the University of New South

Wales in Sydney and a semester at Gründersko-

len (UiO and University of Berkeley). In 2020,

Ingvild began her career at SalMar as a Controller

for Sales and Industry. She now works as the

Financial Manager for InnovaNor and is part of

the company’s improvement team.

Nationality: Norwegian citizen, and

resident in Norway

Shares: 46

RSU-Rights: 974

Hans Stølan

Board Member Employee Representative

Educated traffic pilot. Has been working in the

industry since 1993, both on fish farms, as

a mate on a freighter vessel, and since 2002 at

the factory in Frøya. Chief union representative

for NNN InnovaMar since 2020 and currently

serving on the National Board for NNN. Has

served four terms in the municipal council in

Frøya and as Mayor from 2007 to 2011.

Nationality: Norwegian citizen, and resi-

dent in Norway

Shares: 0

RSU-Rights: 0

8585

Corporate Governance Shareholder InformationCorporate Governance Shareholder Information

Shareholder

Information

SalMar’s 20 largest shareholders

Name

Shareholding

31.12.2023

Shareholding

(%)

KVERVA INDUSTRIER AS 59,934,476 45.39%

FOLKETRYGDFONDET 5,787,976 4.38%

State Street Bank and Trust Comp 2,076,996 1.57%

TERBOLI INVEST AS 1,425,394 1.08%

LIN AS 1,337,685 1.01%

JPMorgan Chase Bank, N.A., London 1,335,830 1.01%

HASPRO AS 1,330,830 1.01%

FRØY KAPITAL AS 1,093,815 0.83%

CACEIS Bank 1,087,941 0.82%

State Street Bank and Trust Comp 1,087,715 0.82%

VERDIPAPIRFONDET

ALFRED BERG GAMBA

1,055,226 0.80%

NILS WILLIKSEN AS 1,018,473 0.77%

CACEIS Bank 923,297 0.70%

PARETO AKSJE NORGE

VERDIPAPIRFOND

916,400 0.69%

JPMorgan Chase Bank, N.A., London 910,109 0.69%

CLEARSTREAM BANKING S.A. 861,574 0.65%

JPMorgan Chase Bank, N.A., London 844,806 0.64%

Bank Pictet & Cie (Europe) AG 815,145 0.62%

ANDVARI AS 810,468 0.61%

State Street Bank and Trust Comp 798,063 0.60%

Total 20 largest shareholders 85,452,219 64.72%

Total other shareholders 46,586,701 35.28%

Total number of shares 31.12.2023

132,038,920

100.00%

Treasury shares 278,854

Shareholders by country

As at 31 December 2023 the company had 22,998 shareholders from

83 different countries:

Country Number of

shareholders

Shareholding

in %

Norway 21,583 72.7 %

United States 153 9.2 %

Luxembourg 63 4.2 %

United Kingdom 106 3.3 %

Sweden 195 2.1 %

Other countries 898 8.5 %

Total 22,998 100.0 %

Share Ownership by Number of Shares

Number of shares

Number of

shareholders

Shareholding

in %

1–100 16,890 0.3 %

101–500 3,752 0.7 %

501–1,000 858 0.5 %

1,001–5,000 847 1.5 %

5,000–10,000 209 1.1 %

10,000–100,000 321 8.0 %

100,001–1,000,000 109 28.5 %

> 1,000,000 12 59.5 %

Total 22,998 100.0 %

300.00

Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov

Dec

400.00

500.00

600.00

700.00

2023 2022

Share price 2023 vs. 2022

Share Price Development

Share price at the start of 2023 was NOK 384.80 per share, valuing SalMar at NOK 55.8 billion. The share price fluctuated between NOK

377.60 per share and NOK 593.40 per share during 2023 At the end of 2023 the share price was NOK 569.20 valuing SalMar at NOK 75.2

billion. Average number of shares traded per day was 239,026.

8686

Corporate Governance Shareholder InformationCorporate Governance Shareholder Information

Share information:

As at 31 December 2023 SalMar ASA had 132,038,920 shares,

with each share having a face value of NOK 0.25. The company was

listed on Oslo Stock Exchange (OSE) 8 May 2007 with the ticker

SALM. The green bond SalMar issued in April 2021 was listed on

Oslo Stock Exhange 21 July 2022 under the ticker SALM01 ESG. The

company’s ISIN code is NO0010310956. Registrar is Nordea Bank and

Auditor is Ernst & Young.

Dividend

SalMar ASA aim to provide shareholders with a competitive return on

invested capital. This return shall be achieved through a combination

of share price increase and the payment of a dividend by the group.

SalMar ASA’s dividend policy is based on the company at all times

having a solid balance sheet and liquidity reserve that is sufficient

to handle future liabilities.

The company has set long-term financing targets related to NIBD/

EBITDA* level in the range 1.0

–

2.5. Provided that the company is within

this range and also taking account future investments, the intention

is to pay out its surplus liquidity, in the form of cash dividends and/or

in the form of share buybacks

*NIBD includes leasing according to IFRS16 and EBITDA is without

fair value adjustments

For the financial year 2023 the Board of Directors propose a cash

dividend of NOK 35.00 per share.

The dividend proposal is subject for approval at the annual general

meeting 6 June 2024

IR contact in SalMar

Communication with shareholders, investors and analysts is a high

priority for SalMar. The objective is to ensure that the financial market

and shareholders receive correct and timely information, thus providing

the soundest possible foundation for a valuation of the company. All

notices sent to the stock exchange are made available on both the

company’s website, the Oslo Stock Exchange’s www.newsweb.no site

and through news agencies.

Håkon Husby

Head of Investor Relations

hakon.husby@salmar.no

+47 936 30 449

Financial calendar 2024

Financial reports will be published through the company’s homepage,

www.salmar.no, Oslo Børs news site, newsweb.no and other newswires.

SalMar holds quarterly presentations open to the public. The presenta-

tions will take place at 08:00 CET, and the material will be available

from 06:30 CET.

Annual general meeting: 6 June 2024

Results Q1 2024: 14 May 2024

Results Q2 and first half 2024: 20 August 2024

Results Q3 2024: 12 November 2024

Please note that the dates and location can be changed. Any changes

will be communicated. Please see our website for further details

Dividend per share

35.0

20.020.020.0

13.0

23.0

19.0

12.0

10.010.0

8.0

0.00.0

4.0

2.2

0.4

1.1

2023

2022202120202019201820172016201520142013201220112010200920082007

8787

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Report of the Board of Directors

An industrial powerhouse emerged in 2023 when NTS, NRS

and SalmoNor were successfully integrated into SalMar

after the completion of the transactions at the end of 2022.

Thereby positioning SalMar firmly as a leading company in the

industry as the second largest salmon producer in the world.

The company posted record high harvest volume and strong annual

results driven by continued solid operational performance and

strong demand for salmon in markets around the world.

2023 was unfortunately impacted negatively by the introduction

of resource rent tax on aquaculture in Norway. This represents

a dramatic increase in the tax on seafood production – a tax

level no other country has on its food production. Given the

increasing competition from a growing number of salmon-

producing countries, it is even more important that the Norwegian

government ensures Norway’s aquaculture sector has stable,

competitive and predictable framework conditions.

In 2023, consolidated harvest volume increased with 31 percent

to 254,100 tonnes and generated group operating income

of NOK 28,219 million. Operational EBIT totalled NOK 8,088

million in 2023.

The Group expects to harvest 244,000 tonnes in Norway

, 15,000

tonnes in Iceland and 37,000 tonnes in Scotland

in 2024.

1 Includes expected harvest volume in segments Fish Farming Central Norway,

Northern Norway and SalMar Aker Ocean.

2 Joint venture Scottish Sea Farms through 50% ownership in

Norskott Havbruk AS

8888

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Business and Strategy

SalMar ASA is a Norwegian public limited company, whose shares are

listed on the Oslo Stock Exchange under the ticker SALM. SalMar is

headquartered on Frøya, in Trøndelag County. The Group’s registered

address is 7266 Kverva.

The Group is one of the world’s largest and most cost-efficient pro-

ducers of Atlantic salmon. It is vertically integrated along the entire

value chain from broodstock, roe and smolt to harvesting, processing

and sales. Through wholly owned businesses, subsidiaries and asso-

ciates/joint ventures, SalMar has operations in Norway, Iceland and

Scotland. The company sells its products to customers worldwide,

with particular focus on markets in Europe, North America and Asia.

At the close of 2023, SalMar had licences to hold a maximum allowable

biomass (MAB) of 167,112 tonnes of MAB in Norway, this includes 6

time-limited demonstration licences (3,120 tonnes MAB), and a MAB

of 23,700 tonnes in Iceland. In addition, SalMar operates several

R&D licences in collaboration with other companies in Norway.

SalMar has a substantial harvesting and processing capacity near

its farming operations in Norway. InnovaMar in Frøya and Vikenco in

Aukra in Central Norway and InnovaNor on Senja in Northern Norway.

Icelandic Salmon, which is listed on Euronext Growth on the Oslo Stock

Exchange and NASDAQ First North on the Icelandic Stock Exchange, is

partially owned by SalMar with 52.48 percent of the company’s shares.

In addition, SalMar owns 50 percent of Scottish Sea Farms Ltd (through

Norskott Havbruk AS), which is UK’s second largest producer of salmon.

SalMar has for many years explored and developed opportunities

to expand its fish farming activities in exposed areas and far out at

the open ocean. In 2021, SalMar took one important step further by

entering into a strategic partnership with the industrial investment

company Aker ASA, and together the two companies aim to create the

world’s leading offshore aquaculture company. The efforts are being

channelled through the company SalMar Aker Ocean, in which SalMar

will retain a majority interest. Through the merger with NRS, SalMar

also gained ownership in the development project Arctic Offshore

Farming, which also became a part of SalMar Aker Ocean in 2023.

Ambition and strategic position

It is SalMar’s clearly expressed ambition to be the world’s best aqua-

culture company, driven by our vision: “Passion for Salmon”.

SalMar aims to be a driving force for sustainable growth in the global

aquaculture industry and is convinced that the establishment of

salmon farming in the ocean is an important step for further sus-

tainable growth.

SalMar will therefore pursue two separate growth strategies going

forward: one for coastal fish farming and one for offshore fish farming.

Coastal fish farming: The core of SalMar’s strategic position in coastal

fish farming will continue to be cost leadership and operational effi-

ciency. This will be achieved by operating a focused value chain, with

significant emphasis on upstream activities. Furthermore, activities

reported in the Sales and Industry segment will secure optimal utili-

sation of the harvested salmon to maximize value creation. In addition

to cost leadership, the company focuses on performance with the aim

of achieving excellence at all levels and in all aspects of production.

SalMar’s coastal fish farming will represent the core of the Group’s pro-

duction and earnings capacity for many years to come. The company

seeks to maintain a leading role in growing and further developing the

industry. Salmar will continue to actively pursue attractive M&A oppor-

tunities, provided they are on commercially acceptable terms.

Offshore fish farming: With SalMar as the majority owner, SalMar

Aker Ocean is a pioneer and leading the development of offshore

salmon farming.

By combining Aker and SalMar’s knowledge and leading expertise in

salmon farming, focus on fish welfare and optimal conditions for the

salmon, as well as industrial software and environmental technologies,

Salmar Aker Ocean will create the world’s most reliable and intelligent

offshore aquaculture business, meeting the highest standards for

fish welfare.

Important events in 2023

Successful integration of NTS, NRS and SalmoNor: Through a series

of transactions, NTS, NRS and SalmoNor became a part of SalMar from

November 2022 and throughout 2023 the companies have been

successfully merged into SalMars existing operational structure. During

2023 the harvesting facility SalmoSea was closed down and the sales

office in Kristiansand was sold. The combination allows for synergies

in regions with good farming conditions and during 2023 NOK 821

million in synergies has been realized in yearly recurring cost savings.

Divestment of Frøy: In the beginning of 2023, SalMar announced

a strategic review of its indirect holding in Frøy AS with the aim of

maximizing value for its shareholders. Through its former subsidiary

NTS AS, SalMar held 72.11 percent of the shares in Frøy. Throughout

the strategic review, one experienced strong interest from a broad

field of reputable investors identifying the attractive business model

and growth profile of Frøy. And in August 2023 a transaction was

completed where Goldman Sachs Asset Management acquired

72.11 percent of the shares in Frøy for cash consideration of NOK

76.50 per share.

New financing agreement and cancellation of treasury shares: In

2023 SalMar strengthened its balance sheet and financial flexibility

by delivering strong financial results. SalMar refinanced its previous

8989

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

credit facilities by entering a new unsecured credit facility, totalling

NOK 16 billion and accordion of NOK 3 billion. In addition, 13.1 million

treasury shares were cancelled.

Increase of smolt capacity: Expansion of the smolt facility in Tjuin

in Trøndelag was completed in 2023, with first transfer of fish to sea

planned for the spring 2024. In addition, the second closed net pen,

located in the southern parts of Central Norway, finalized construction

with first production to start in 2024.

Two semi-offshore projects in operation: Both Ocean Farm 1 and

Arctic Offshore Farming started production in 2023 and first harvest

from Arctic Offshore Farming commenced late 2023.

Events after the reporting date

Allegations of price collusion: On 6 February 2019, the European

Commission launched an investigation of SalMar ASA and several

other producers of farmed Norwegian Atlantic salmon, concerning

alleged anti-competitive conduct. On 25 January 2024 the European

Commission issued a Statement of Objections in the case. The Com-

mission’s preliminary assessment is that there may have occurred

a breach of EU competition law in the period 2011

–

2019. SalMar

strongly disagrees with the Commission’s preliminary assessment and

is accounting for SalMar’s view in a thorough reply to the Commission.

Please see note 4.10 for further details.

Market Conditions

Supply, exports and price of Atlantic salmon

The global supply of Atlantic salmon decreased in 2023 with 2.3

percent, according to Kontali Analyse.

Supply of Atlantic salmon

in 1,000 tonnes whole

fish equivalents (WFE) 2022 2023 Change

Norway 1,517 1,479 -2.5 %

Chile 753 766 1.7 %

UK 161 154 -4.4 %

North America 153 128 -16.5 %

Faeroes 100 89 -10.2 %

Other countries 180 180 0.3 %

Total global supply 2,863 2,796 -2.3 %

2023 was the best year on record for Norwegian exports of seafood

measured in value in NOK. The value of Norway’s salmon exports rose

by 15 percent, reflecting that the average price of Atlantic salmon was

higher in 2023 than the year before. Total export of Atlantic Salmon

was around 1,408 tonnes round weight, down 2 percent from 2022.

Norway exported 68 percent of its volume to the EU in 2023. Overall,

the EU decreased its imports of salmon from Norway by 2 percent,

with the largest market, Poland, increasing their imports by 1 percent

and second largest market, France, decreasing with 8 percent.

SalMar sold directly to more than 50 countries in 2023. Europe was

the most important destination, with Poland, Sweden and France as

the largest single markets. The second most important destination

was Asia, with South Korea, Japan and Taiwan as the most prominent.

North America is the third largest export destination.

The price of Atlantic Salmon (NASDAQ) was significantly higher in

2023 than in 2022. The year’s lowest price was recorded in week

35 at NOK 70.4 per kg, while the highest price came in week 17 at

NOK 127.3 per kg. The average price of salmon (NASDAQ Salmon

Index) for 2023 was NOK 93.0 per kg, compared to NOK 82.6 per kg

the year before while in EUR it was at the same level EUR 8.2 per kg.

From the close of 2022 until the close of 2023, the Norwegian cur-

rency (NOK) weakened by seven percent against the EUR, 3 percent

against USD and 9 percent against the GBP. A weakening of the NOK

against the respective trading currencies could lead to an increase in

salmon prices measured in NOK and vice versa.

Framework conditions

Norway

After several years of more stable framework conditions in Norway,

the surprising tax proposal from the Norwegian government 28

September 2022 marked a change in this. In September 2022, the

Norwegian government proposed the introduction of a resource rent

tax on aquaculture production in Norway. On 31 May 2023, with

a narrow majority, the Norwegian Parliament voted for implementing

an additional resource tax on aquaculture in Norway, with a tax rate

of 25 percent. This is in addition to the regular corporate tax and

means that the marginal tax rate on aquaculture in the sea phase

will increase by over 100 percent, from 22 percent to 47 percent. The

new tax applied retroactively from January 1, 2023.

SalMar remains strongly opposed to this the resource rent tax and

has consistently cautioned against it. The tax relies on the incorrect

assumption that aquaculture food production is a location-bound

resource rent industry that consistently generates extraordinary

returns disproportionate to the risk involved. The high tax level and

the unfavourable design of the new tax are poised to withdraw a sub-

stantial portion of investment capital from the industry. Therefore,

9090

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

SalMar will continue its fact-based dialogue with authorities and

decision-makers to promptly restoring a tax system and tax level

that is appropriate for Norwegian aquaculture. SalMar is open to legal

steps in due course.

Iceland

After an improvement in framework conditions for salmon farming in

Iceland in 2022, conditions have become more unpredictable at the

end of 2023 and in to 2024. In December 2023, a bill was presented

by the Icelandic government which could lead to changes in the regu-

latory framework for the country’s aquaculture sector. The aim of the

proposed changes is to increase the value of Iceland’s aquaculture

sector, while do it in a sustainable way. The bill is expected to be

finalised and implemented during the first half of 2024.

Icelandic Salmon continues its active and constructive dialogue with

the authorities with respect to these issues. The company believes

there is room for further growth in Iceland and growth in production

and market share is expected to increase going forward. Increased

market share of Icelandic salmon the next few years should help

infrastructure with much needed scale and therefore improved com-

petitiveness of the Icelandic salmon industry. Increased awareness in

the market also creates opportunities related to sales and marketing

as Icelandic salmon has not been available in all main markets on

a weekly basis.

Icelandic Salmon today holds licences of 23,700 tonnes maximum

allowed biomass in the southern part of the Icelandic Westfjords. At

the end of February 2024 Icelandic Salmon, was informed that the

Icelandic Food and Veterinary Authority (MAST) and Environment

Agency of Iceland (UST) have advertised a licence to be issued to

Arnarlax of a salmon farming licences in Ísafjarðardjúp. The licence

will be for 10,000 tonnes maximum allowed biomass of sterile salmon.

The licence is under consultation until 2

of April 2024 and the formal

and final decision will follow up to four weeks after the end of the

consultation period.

The company is in the process of applying for additional licences in

Arnarfjörður.

Scotland

Framework conditions for salmon farming in Scotland have remained

relatively constant over several years. The growing influence of special

interests (NGOs, organised anglers, etc.) has led to more challenging

regulations than in Norway, which has in turn contributed to a higher

level of costs (lower efficiency, less economies of scale). The Scottish

authorities have expressed an ambition to grow the aquaculture

industry from its present output level of around 170,000 tonnes. In

2023 some positive signals has been received in order to establish

new farming sites or grow existing good performing sites.

Access to markets

Russia was previously an important market for SalMar and Norwegian

salmon in general. However, trade restrictions introduced in the wake

of the Crimean conflict in 2014, and more recently the Russian inva-

sion of Ukraine in 2022, mean that the Russian market will remain

closed to Norwegian fish farmers in the foreseeable future.

Financial Performance

Going concern

The annual financial statements for 2023 have been prepared on the

assumption that SalMar is a going concern pursuant to section 3-3a of

the Norwegian Accounting Act. With reference to the Group’s results

and financial position, as well as forecasts for the years ahead, the

conditions required for continuation as a going concern are hereby

confirmed to exist. In the opinion of the Board of Directors, the

Group’s financial position is solid.

Consolidated Income Statement

The Group generated consolidated operating income of NOK 28,219

million in 2023, compared with NOK 20,158 million in 2022. This

represents an increase of 40 percent.

In 2023, consolidated harvest volume was 254,100 tonnes: 233,900

tonnes in Norway, 2,300 tonnes in SalMar Aker Ocean and 17,900

tonnes in Iceland. In addition, Norskott Havbruk harvested 24,900

tonnes, of which SalMar’s share was 12,400 tonnes (50 percent).

The average price of salmon (NASDAQ) in 2023 came to NOK 93.0

per kg, up 13 percent from the average in 2022, which came to NOK

82.6 per kg. The price of salmon was higher in 2023 mainly due to

continued strong demand of products in all core markets, price inflation

on proteins in general and a weakening of NOK.

Around 19 percent of SalMar’s total volume harvested in Norway

in 2023 was sold under fixed-price contracts. The terms of these

contracts vary, but do not normally last for more than 12 months.

Overall, the price achieved under these fixed-price contracts was on

par with the spot price (NASDAQ) for the year as a whole.

9191

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

The fish farming segments in Norway performed well throughout

the year, although the results in Northern Norway was negatively

impacted by string jellyfish at the end of 2023.

The SalMar Group had salary and personnel expenses of NOK 2,454

million in 2023, compared with NOK 1,894 million in 2022. The num-

ber of full-time equivalents (FTEs) in the Group rose by 18 percent in

2023, from 2,266 FTEs at the close of 2022 to 2,674 FTEs at the

close of 2023. The main reason for the increase is the inclusion of

NTS, NRS and SalmoNor for the full year in 2023 compared to only

2 months in 2022.

Operational EBIT is SalMar’s most important measure of performance,

this is an alternative performance measure used by the Group, since

it shows the results of underlying operations during the period. Spe-

cific items not associated with underlying operations are presented

on separate lines in the consolidated financial statements. See note

4.11 for further details.

The SalMar Group made an operational EBIT of NOK 8,088 million in

2023, compared with NOK 4,465 million in 2022.

Production tax reduced profits with NOK 208 million, onerous con-

tracts reduced profits with NOK 237 million, fair value adjustments

increased profits by NOK 1,589 million and fair value adjustments

included in the cost of goods sold due to business combinations

reduced profits with NOK 723 million in 2023. The corresponding ele-

ments in 2022 increased profits by NOK 274 million for production tax,

onerous contracts, fair value adjustments and fair value adjustments

included in the cost of goods sold due to business combinations. Fair

value adjustments comprise changes in the fair value of the biological

assets and unrealised value of Fish Pool contracts. See note 2.6, 2.11,

2.9 and 3.13 for further details.

SalMar made an operating profit of NOK 8,509 million in 2023, up

from NOK 4,738 million in 2022.

Income from investments in associates and joint ventures contrib-

uted less to the 2023 results than the year before. This is largely

attributable to reduced results by Norskott Havbruk. SalMar’s share

of the loss from these investments totalled NOK -27 million in 2023,

compared with a profit of NOK 66 million in 2022.

Net financial items in 2023 totalled NOK -1,203 million, compared

with NOK -243 million in 2022. The change is largely due to increased

interest bearing debt following completion of the transactions at

the end of 2022 and increased interest rates and thereby interest

expenses. SalMar’s net interest income and expenses for 2023 totalled

NOK 1,172 million, an increase from NOK 336 million in 2022. Finan-

cial income totalled NOK 30 million in 2023, a decrease from NOK

95 million in 2022. Financial expenses totalled NOK 60 million, an

increase from NOK 2 million in 2022. See Note 2.10 for further details.

SalMar’s profit before tax from continuing operations in 2023 totalled

NOK 7,279 million, up from NOK 4,562 million in 2022. A tax expense

of NOK 4,534 million has been calculated for 2023, up from NOK 954

million in 2022. The largest increase in tax expense in the profit and

loss is due to implementation of resource rent tax in Norway, see

Note 2.11 for further details.

SalMar’s profit for the year from continuing operations totalled NOK

2,746 million in 2023, compared with NOK 3,608 million in 2022.

Until Frøy was sold in August 2023 it was recognized as discontin-

ued operations, see note 4.7 for further details, and profit after tax

from discontinued operations amounted to NOK 657 million in 2022,

compared with NOK 107 million in 2022.

Profit for the year totalled NOK 3,402 million in 2023 down from NOK

3,715 million in 2022.

Consolidated Statement of Cash Flows

SalMar achieved a positive cash flow from operating activities of NOK

8,975 million in 2023, compared with NOK 4,222 million in 2022.

During 2023, SalMar’s working capital increased with NOK 209 million,

compared with an increase of NOK 806 million in 2022. In addition,

SalMar paid NOK 608 million in corporate tax in 2023, compared with

NOK 552 million the year before.

Net cash flow from investing activities totalled NOK 1,775 million

in 2023, compared with net NOK -2,633 million in 2022. See Notes

2.10, 3.1, 3.3, 3.5, 4.4 and 4.7 for further details.

Net cash flow from financing activities totalled NOK -12,989 million

in 2023, compared with NOK 164 million in 2022. Cash flow from

interest-bearing debt and overdraft came to NOK -7,947 million in

2023, while repayments relating to leasing liabilities totalled NOK

321 million. Net interest paid came to NOK 1,247 million. A dividend

payment of NOK 2,748 million was made in 2023. Acquisition of

non-controlling interests totalled NOK 755 million while cash-flow

from financing activities related to discontinued operations totalled

NOK 29 million.

In total, including currency translation of cash and cash equivalent,

this gave SalMar a cash flow for 2023 of NOK -2,246 million. This

decreased the Group’s cash and cash equivalents to NOK 785 million

at the close of the year.

Consolidated Statement of Financial Position

As of 31 December 2023, SalMar had a total balance of NOK 53,331

million, a decrease of NOK 9,170 million since the end of 2022. The

main reason for the decrease is the sale of Frøy.

9292

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

The book value of the Group’s intangible assets increased with NOK

394 million in 2023. At the end of the year, the value of the Group

capitalised intangible assets was NOK 18,685 million.

The book value of property, plant and equipment totalled NOK 14,169

million at the end of 2023, an increase of NOK 1,651 million during the

year. This includes right-to-use assets of NOK 1,797 million, compared

with NOK 1,386 million in 2022.

The Group’s non-current financial assets totalled NOK 2,679 million at

the end of 2023, down from NOK 2,746 million at the end of 2022.

The Group’s biological assets were valued at 13,265 million at the end

of the year. This is NOK 1,510 million higher than at the end of 2022.

Measured in tonnes, the biomass is at the same level as at the end of

2022. See Note 3.6 for further details. The value of the Group’s other

inventory at the end of 2023 stood at NOK 1,230 million.

Trade receivables totalled NOK 1,457 million in 2023, up from NOK

1,414 million at the end of 2022. Other receivables increased by NOK

398 million during the period to NOK 1,061 million. At the end of the

year, SalMar had cash and cash equivalents totalling NOK 785 million.

At the end of 2022 Frøy was classified as assets held for sale and in

August 2023 the company was sold, therefore assets held for sale

stood at 0 at the end of 2023 compared to NOK 11,472 million at

the end of 2022. See Note 4.7 for further details.

At the end of 2023, the Group’s equity totalled NOK 23,079 million,

down from NOK 24,155 million at the end of 2022. Due to reduction

in total assets the equity ratio has increased from 38.6 percent at

the end of 2022 to 43.3 percent at the end of 2023.

Net interest-bearing debt (interest-bearing debt less cash and cash

equivalents) totalled NOK 13,107 million at the end of the year, down

from NOK 19,079 million at the end of 2022. See Note 3.11 for

further details.

The NOK 9,170 million decrease in the Group’s total capital in 2023

can be primarily attributed to the sale of Frøy decreasing the liabilities

directly associated with the assets held for sale and also decreasing

the interest-bearing debt. The Group’s solvency and financial position

remains solid at the end of 2023 with a strong liquidity reserve.

Reporting Segments

Fish Farming Central Norway

NOK million 2023 2022

Revenue and income 12,419 8,872

Operational EBIT 4,612 3,599

Volume harvested (tonnes gutted weight) 141,139 114,139

Operational EBIT/kg (NOK/kg gw) 32.7 31.5

Fish Farming Central Norway, the Group’s largest fish farming segment,

posted good financial results in 2023 on the back of a continued

strong operational performance. The segment’s operating income

increased by NOK 3,547 million from 2022, to NOK 12,419 million

in 2023. Operational EBIT increased with NOK 1,014 million to NOK

4,612 million in the same period.

Operational EBIT per kg gutted weight increased with NOK 1.15

compared to 2022. The increase is attributable to higher salmon

prices, despite an increase in cost level due to cost inflation on input

factors. On average, the segment experienced an increase in the price

achieved for its harvested salmon of NOK 10.2 per kg. The production

cost of the harvested biomass has, on average, increased with NOK

9.1 per kg compared with 2022 driven by feed price inflation and

weakening of NOK.

Fish Farming Central Norway harvested a total of 141,139 tonnes

in 2023, compared with 114,139 tonnes in 2022. This represents

an increase of 24 percent. SalMar expects harvest volume in this

segment will amount to 146,000 tonnes in 2024. The segment has

unexploited potential within existing licences for further growth and

SalMar expects good volume growth in the years to come.

Fish Farming Northern Norway

NOK million 2023 2022

Revenue and income 7,894 4,883

Operational EBIT 3,402 2,526

Volume harvested (tonnes gutted weight) 92,777 63,392

Operational EBIT/kg (NOK/kg gw) 36.7 39.8

Fish Farming Northern Norway had another solid year, where strong

operational performance, has resulted in increased volume and solid

cost level on harvested volume. Combined with higher salmon prices

in 2023 this has contributed to the strong results. Unfortunately, the

end of the year was negatively affected by string jellyfish leading

to slightly lower harvest volume for 2023 and culling of fish which

affects volume growth in 2024.

The segment’s operating income increased with NOK 3,011 million

from 2022, to NOK 7,894 million in 2023. Operational EBIT rose with

NOK 876 million to NOK 3,402 million.

9393

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Operational EBIT per kg gutted weight came to NOK 36.7 in 2023,

compared with NOK 39.8 in 2022. The decrease of NOK 3.2 per kg

was caused by inclusion of former NRS sites which had a higher cost

compared to former SalMar sites. The average price achievement

increased with NOK 8.1 per kg and the production cost increased with

NOK 11.2 per kg driven by feed price inflation, weakening of NOK and

inclusion of former NRS sites.

Harvest volume in Fish Farming Northern Norway was 92,777 tonnes

in 2023, compared with 63,392 tonnes in 2022. This represents an

increase of 46 percent. SalMar expects a harvest volume of 91,000

tonnes in 2024. The slight decrease is due to the impact of string jelly-

fish attack at the end of 2023. The segment has unexploited potential

within existing licences for further growth and SalMar expects strong

volume growth in the years to come.

Icelandic Salmon

NOK million 2023 2022

Revenue and income 1,871 1,595

Operational EBIT 230 366

Volume harvested (tonnes gutted weight) 17,919 16,139

Operational EBIT/kg (NOK/kg gw) 12.8 22.7

Icelandic Salmon is Iceland’s largest producer and processor of farmed

salmon. The company is fully vertically integrated, with its own hatch-

ery, sea farms, harvesting plant and sales force. SalMar controlled 52.5

percent of the company’s shares at the end of 2023.

The segment’s operating income increased with NOK 276 million from

2022, to NOK 1,871 million in 2023. Operational EBIT decreased with

NOK 136 million to NOK 230 million in 2023. Operational EBIT per kg

gutted weight came to NOK 12.8 in 2023, compared with NOK 22.7

in 2022. The reduction is driven by biological challenges at the end

of 2023 and feed price inflation.

The company harvested a total of 17,919 tonnes in 2023 and Icelandic

Salmon expects to harvest 15,000 tonnes in 2024. The reduction

is due to the biological challenges at the end of 2023 leading to

slightly lower volume in 2024. The increase in smolt capacity in 2021

and 2022 will come to effect in 2025, when the company expects

a significant increase in harvest volume on Iceland.

Sales and Industry

NOK million 2023 2022

Revenue and income 27,094 19,141

Operational EBIT 254 -1,286

This segment places and sells the entire harvested volume of the

Group in Norway. The fish is bought from SalMar’s farming segments

at market prices.

The segment’s income increased to NOK 27,094 million in 2023 up

from NOK 19,141 million in 2022. Operational EBIT came to NOK 254

million in 2023 a strong increase from NOK -1,286 million in 2022.

The margins for the Sales and Industry segment increased in 2023,

due to higher price achievement and strong operational performance.

In 2022 price point compared with average spot prices of our fixed-

price contracts was lower compared to 2023 and together with strong

operational performance and increased utilization of harvesting and

processing capacity, this led to increase profitability for the segment.

In 2023, around 18 percent of the volume harvested was sold under

fixed-price contracts and in addition 1% was sold on financial con-

tracts with fixed price.

Around 214,000 tonnes of fish were harvested at InnovaMar and

InnovaNor in 2023, compared with 181,000 tonnes in 2022. During

2022 volume at InnovaNor was gradually ramped up and in 2023 the

facility showcased its ability to handle large volume and has shown

itself as a important strategic and industrial investment for SalMar.

Our harvesting and processing facilities is an important element for

further improvement of biological and operational performance in

the whole value chain.

Strategically, SalMar process a relatively large portion of the raw

material in Norway. This does not only increase the quality of the

product sold to the customer, but it also enables by-products to be

dealt with efficiently, reducing freight cost, as well as reduces CO2

emissions and boosts local value creation.

SalMar Aker Ocean

NOK million 2023 2022

Revenue and income 173 32

Operational EBIT -53 -155

Volume harvested (tonnes gutted weight) 2,267 -

Operational EBIT/kg (NOK/kg gw) -23.2 -

Salmar Aker Ocean reported as a separate segment effective from

1 January 2022.

To strengthen and concentrate its efforts in offshore aquaculture,

SalMar created the subsidiary SalMar Ocean AS, later changed to

SalMar Aker Ocean AS. Late 2021, SalMar and Aker through Aker

Capital entered into a partnership whereas Aker Capital has 15%

ownership of SalMar Aker Ocean and SalMar ASA control the remain-

ing 85%, with the purpose of creating the world leading offshore

farming company.

9494

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

In 2023 the segment got two semi-offshore projects in operation.

Ocean Farm 1 started its third production cycle following an upgrade

in 2022 while Arctic Offshore Farming project became a part of the

segment at the end of 2023 and also started its first production

cycle in 2023.

In 2023 the segment harvested a total of 2,267 tonnes from the Arctic

Offshore Farming project. Operational EBIT totalled NOK -53 million in

2023. In 2024 the segment expects to harvest around 7,000 tonnes

where the first production cycle of the Arctic Offshore Farming project

will be concluded and harvest from Ocean Farm 1 will commence.

In the end of September 2023, site approval for one open ocean unit

was granted to SalMar Aker Ocean’s Smart Fish Farm, approximately

50 nautical miles west of Frøya in Central Norway. Due to regulatory

uncertainty SalMar Aker Ocean decided that further work on offshore

aquaculture in Norway is currently on hold. The company will now

fully focus on growth semi-offshore and utilize the capacity of its

existing two semi-offshore units for the production of sustainable

Norwegian salmon. It will also continue to explore opportunities out-

side of Norway.

Joint Ventures

Norskott Havbruk

NOK million 2023 2022

Revenue and income 2,561 3,188

Operational EBIT -304 214

Volume harvested (tonnes gutted weight) 24,900 35,900

Operational EBIT/kg (NOK/kg gw) -12.2 6.0

Through its wholly owned subsidiary Scottish Sea Farms, Norskott

Havbruk engages in the farming of salmon in mainland Scotland,

Orkney and Shetland. SalMar controls 50 percent of the business.

The company generated revenues of NOK 2,561 million in 2023,

compared with NOK 3,188 million in 2022. The decrease in revenues

is due to lower volume harvested.

Operational EBIT for the year ended at NOK -304 million, down from

NOK 214 million in 2022. Operational EBIT per kg gutted weight came

to NOK -12.2 in 2023, compared with NOK 6.0 in 2022. Biological

challenges, particularly those linked to gill health, have had a neg-

ative impact on the results in 2023. It has led to harvesting of fish

with a lower average weight, which has affected both cost and price

achieved, and lower harvest volume than anticipated going into 2023.

The company harvested a total of 24,900 tonnes in 2023, down from

35,900 tonnes in 2022.

Going into 2024 conditions have improved, and the company sees

improved biological situation for generations to be harvested during

2024. Volume guidance for 2024 is expected at 37,000 tonnes.

Norskott Havbruk is recognised as a joint venture, with SalMar’s share

of profit/loss after tax and fair value adjustment of the biomass (50

percent) recognised as financial income. SalMar’s share of the com-

pany’s net profit in 2023 came to NOK -168 million, compared with

NOK 41 million in 2022.

9595

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

The parent company’s financial statements and

allocation of the profit for the year

The parent company, SalMar ASA, is a shareholding and administra-

tive entity. Group management and administrative resources are

employed by this company. In 2022, it employed a total of 55 full-

time equivalents.

The annual financial statements for the parent company have been

prepared in accordance with the Norwegian Accounting Act of 1998

and Generally Accepted Accounting Principles in Norway (NGAAP).

SalMar ASA made a net profit for the year of NOK 4,042 million in

2023, compared with NOK 2,785 million in 2022. Total operating

revenues totalled NOK 836 million and total operating expenses

amounted to NOK -679 million, thereby giving a total operating profit

of NOK 157 million.

Income from investments in group companies amounted to NOK 4,945

million. In addition, SalMar ASA manages the Group’s primary financing

arrangements and recognised NOK 1,213 million in interest income on

loans to group companies and other interest income. Interest expenses

amounting to NOK -1,251 million were incurred mostly in association

with the Group’s financing arrangements.

SalMar ASA had recognised total assets of NOK 29,840 million at the

close of 2023. Of this amount, non-current assets accounted for NOK

24,910 million, of which NOK 16,502 million comprised of intercom-

pany non-current receivables and NOK 6,763 million comprised of

investment in subsidiaries. Current asset accounted for NOK 4,929

million where intercompany current receivables totalled NOK 4,853

million cash and cash equivalents was NOK 16 million at the close of

2023. Equity as of 31 December 2023 totalled NOK 10,050 million,

which corresponds to an equity ratio of 33.7 percent. Non-current

liabilities totalled NOK 11,165 million and mainly comprised inter-

est-bearing debt. Current liabilities totalled NOK 8,625 million, of

which current interest-bearing debt accounted for NOK 1,044 million

and dividend provisions came to NOK 4,612 million.

The Board of Directors is proposing a dividend of NOK 35.00 per

share for the 2023 financial year. The Board proposes the following

allocation of the year’s profit:

Dividend NOK 4,612 million

Transferred from (-) /to(+) retained earnings NOK 1,984 million

Transferred from (-) /to(+) other paid-in equity NOK -392 million

Transferred from (-) /to(+) share premium NOK -2,161 million

Total allocated NOK 4,042 million

At the close of the year, the company had a distributable reserve of

NOK 10,017 million.

9696

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Risks and Risk Management

Risk management is a key function of the management team. The

Group has systems and routines in place to monitor important risk

factors in all business areas, and places particular emphasis on the

control and follow up of production facilities in accordance with quality

and certification standards.

It is the CEO’s responsibility to ensure that the Group operates in com-

pliance with all relevant legislation and operating guidelines for group

entities. Follow-up and control of risk factors, as well as compliance

with the Group’s values and code of conduct, is carried out in the line

organisation as part of day-to-day operations.

See Note 4.10 for details with respect to allegations of price fixing.

SalMar has board liability insurance which covers both the Board of

Directors, the CEO and executive management.

Operational risk

SalMar’s most important operational risk relates to the biological

development of its fish stocks, at both its hatcheries and sea farms.

Even though SalMar develops and implements risk-reducing measures,

the nature of the industry is such that the inherent biological risk will

always be present. In recent years, the aquaculture industry has faced

challenges associated with the increasingly widespread presence

of sea lice and greater prevalence of medicinally resistant lice. This

has forced SalMar, along with the rest of the industry, to change the

methods used and intensify its efforts to deal with the lice situation.

And at the end of 2023 string jellyfish attacks particularly in our oper-

ations in Northern Norway, clearly showcased the inherent biological

risk the industry is facing, as the attacks led to early harvest and also

culling of fish to safeguard fish welfare.

SalMar takes a holistic, strategic approach to biological risk, includ-

ing sea lice, which encompasses preventive measures and activities

designed to limit damage to its stocks and further increase the fish

welfare. SalMar continuously makes operational assessments to pro-

tect the welfare of its fish.

Access to suitable production areas is a crucial preventive measure.

For SalMar, it is important that production take place in areas that have

the capacity needed to sustainably produce the volumes involved.

Offshore could lead to new and better locations being used. Selective

breeding and the genetic development of a more robust salmon is

another important preventive measure to reduce biological risk.

SalMar’s operating procedures are designed to reduce biological risk.

Vaccination against various fish diseases is a key element in the

company’s operating procedures. It will always be necessary to use

medication in connection with any form of biological production.

However, such medication must be applied prudently to prevent the

development of resistance. The company takes a risk-based approach

to the sea lice situation, which involves both preventive and corrective

measures. SalMar has teams of employees working specifically in this

area. In the past couple of years, a substantial delousing capacity has

been built up in the form of mechanical delousing equipment that also

collects the lice to prevent reproduction, and SalMar are continuously

evaluating and expanding its toolbox to handle sea lice. For further

details of SalMar’s lice management and procedures related to fish

welfare, please see the Sustainability Report.

Over time, SalMar has built up an effective response capability to deal

with biological challenges. Our harvesting capacity at InnovaMar and

InnovaNor enables us to respond effectively. Furthermore, SalMar has

good access to wellboat capacity.

Access to suitable feed raw materials is a vital part of risk manage-

ment as feed is the most important input factor for the fish during

the lifecycle. SalMar are continuously evaluating and expanding feed

ingredients suitable for the nutritional needs of the fish while at the

same time securing access to raw material sources.

Financial risk

The follow-up of internal controls associated with financial reporting,

is carried out through management’s day-to-day supervision, the pro-

cess owners’ follow-up and monitoring by the Board’s Audit and Risk

Committee. Non-conformances and improvement areas are followed

up and remedial measures implemented. Financial risk is managed by

a central unit at the head office, and financial hedging instruments

are employed where they are considered appropriate.

Through its activities, the Group is exposed to various kinds of financial

risk e.g.: market risk, credit risk and liquidity risk. The Group man-

agement oversees the management of these risks and draws up

guidelines for dealing with them. The Group makes use of financial

derivatives to hedge against certain risks. The Board of Directors has

defined a financial risk appetite that sets overarching limits.

The Group has credit facilities with a syndicate of banks, which

ensures sufficient flexibility both operationally and with respect

to the financing of investments in SalMar’s operations. In 2023 the

group refinanced its financing agreements with unsecured credit

facilities totalling NOK 16 billion with an accordion of NOK 3 billion.

In 2021 the Group issued its first green bond totalling NOK 3.5 billion.

In addition, the company has financial instruments, such as trade

receivables, trade payables, etc., which are directly related to day-to-

day business operations.

It is the Group’s policy that no trading in derivatives for speculative

purposes may be undertaken.

9797

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Foreign exchange risk

The bulk of the Group’s output is sold internationally, with accounts

settled largely in EUR, USD, GBP and JPY. Changes in exchange rates

therefore represent both a direct and indirect financial risk for the

Group. Foreign exchange exposure linked to the Group’s costs is, how-

ever, more limited compare to effect on revenue, since input factors

and salaries are paid largely in NOK. The Group enters into forward

currency contracts to reduce the risk associated with sales revenues

denominated in foreign currencies that derive from contracts with

customers. NOK 1,000 million of the green bond has been swapped

to EUR with a fixed interest rate, this is a hedging of the currency

exposure in Icelandic Salmon. For further details and description of

use of forward currency contracts see Note 3.9.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of

a financial instrument will fluctuate because of changes in market

interest rates. The Group’s exposure to the risk of changes in market

interest rates relates primarily to the Group’s long-term debt obliga-

tions with floating interest rates.

With effect from February 2022, SalMar ASA entered into fixed rate

interest swap contracts with a total principal of NOK 2,250 million. 750

million has a duration of 7 years starting 22 April 2022, 750 million has

a duration of 7 years starting 22 January 2025, and 750 million has

a duration of 10 years starting 22 January 2024. The interest swap

contracts are established with the purpose to reduce the interest rate

risk related to long-term loans. In 2021 the Group has entered into

a to cross-currency interest swap and an interest swap to manage

the interest rate. For more details regarding the swaps see note 3.9.

Price risk

SalMar’s entire business is related to salmon. The Group’s profitability

and cash flows are strongly correlated with movements in the price

of salmon. Historically, salmon prices have been highly volatile seen in

an annual, quarterly and monthly perspective. In 2023, the spot price

of Atlantic salmon fluctuated between NOK 70.4 and NOK 127.3 per

kg, measured weekly on the NASDAQ salmon index.

The global salmon market is largely a fresh-fish market, where most

of the fish harvested is sold immediately to processing companies or

directly to the consumer. For several years, growth in demand has been

relatively stable, while growth in supply has varied more substantially

from year to year. In addition to planned output volumes defined by

the number of smolt transferred to sea farms, supply is also affected

by a number of external factors. Fluctuations in sea temperatures, the

spread of sea lice and outbreaks of disease or other environmental

challenges are all factors which, directly or indirectly, affect fish growth

and thus supply. As a consequence, relatively substantial variations in

supply may occur within short periods of time. With relatively stable

demand, this can result in considerable price volatility.

SalMar sells a portion of its output through fixed-price contracts. The

Group has drawn up guidelines for such contracts to limit exposure

to salmon price volatility. It is the Sales and Industry segment which

sells the entire Group’s harvested volume in Norway, the impact of the

fixed-price contracts is therefore recognised in this segment’s financial

statements. Approximately 19 percent of the Group’s volume was sold

under fixed-price contracts in 2023.

Credit risk

The risk of a counterparty not having the financial resources to meet its

obligations has, historically, been considered low, and SalMar’s losses

resulting from bad debts have been small. The Group has guidelines

to ensure that sales are made only to customers who have not pre-

viously had material payment issues, and that outstanding totals

do not exceed defined credit limits. Credit insurance is taken out as

a general rule.

The Group does not have any material credit risk associated with an

individual counterparty or counterparties which may be considered

a group due to similarities in the credit risk they represent, see Note

4.1 for further details.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its

financial obligations as they fall due.

SalMar’s objective is to have sufficient cash, cash equivalents or

short and medium-term credit facilities to meet its day-to-day fund-

ing requirement. The Group prepares regular cash-flow forecasts

to ensure that it has sufficient liquidity at all times. Furthermore,

a flexible financing structure is maintained through established credit

facilities. Unused credit facilities are described in the notes to the

financial statements.

The Group’s equity ratio, its prospects for future profits and cur-

rent credit facilities mean that the Group’s liquidity risk is consid-

ered to be low.

SalMar has a BBB+ credit rating from Nordic Credit Rating, please visit

their website for their latest assessment of the credit rating.

9898

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

R&D

For many years, SalMar has engaged with various R&D institutes,

including partnership relating to the operation of R&D licences. The

scale and professionalism of important development activities has

increased and continues to do so. For SalMar it is important to be

a professional, but demanding partner, such that the outcomes of

ongoing trials are as relevant as possible. SalMar has allocated person-

nel specifically to organising and assisting R&D environments involved

in such collaborative efforts, while production staff are becoming

increasingly experienced with regards to the best way to safeguard

research results in a busy working day. Proximity to the research, and

the opportunity to influence both its planning and its area of focus

are important sources of motivation for SalMar.

SalMar is not satisfied with how the development over the last years

has been with respect to both increased mortality and more chal-

lenging fish welfare. Therefore, early in 2024 SalMar announced the

broad industry initiative, Salmon Living Lab. This is a unique initiative

that seeks to engage an entire industry in solving the challenges the

salmon face today. In addition to bringing partners across the salmon

supply chain together, it will also lead to building of an innovation

and R&D centre which will house various activities and function as

a focal point for knowledge. In addition to its expertise, SalMar will

be supporting the initiative with a strong financial commitment. One

envisions about NOK 500 million to ensure that the project get off on

a good start where the contribution will be shared among the parties

who join the project. The first partner to sign up is Cargill, a trusted

partner for farmers and food and agriculture companies worldwide.

The scale of SalMar’s R&D activities in a wide range of fields was

substantial in 2023. During the year, SalMar continued to focus on fish

welfare and sea lice control. Development projects were conducted at

the secondary processing plant and great emphasis has been placed on

feed optimisation. In addition, SalMar continuously assesses its own

work processes and aims to establish more long-term projects and

a closer cooperation with the supply industry and research institutions.

SalMar’s efforts in the field of breeding and genetics include a col-

laboration with Benchmark Holding PLC’s subsidiary SalmoBreed,

through the joint venture, SalMar Genetics. This model has created

a solid foundation for the further development of the Rauma strain in

the years ahead, and that this work may also offer synergies in other

areas that SalMar is focusing on.

In 2023, SalMar continued its R&D activities in feed and collabo-

rates with its main feed providers. SalMar sees a substantial need for

greater focus on basic knowledge of how the fish are fed and how

we can ensure that the entire population enjoys optimal conditions

throughout the production cycle. It is SalMar’s clearly expressed goal

to initiate better and more comprehensive research into these issues

under large-scale conditions. And several of these projects will be

included in the Salmon Living Lab initiative.

For many years, fish farming in the open ocean has been an important

part of SalMar’s strategy to ensure sustainable growth. The company

has further strengthened its efforts in this field by transferring its

activities and channelling all further R&D efforts and investments in

offshore fish farming into SalMar Aker Ocean, jointly owned with Aker.

The company has two semi-offshore projects in operation after also

Arctic Offshore Farming was included in this company from 2023.

Ocean Farm 1 was the first offshore project to be awarded special

development licences in 2016. Since then, the company has completed

two successful production cycles at this pioneering facility. In 2023

the third production cycle started which will be harvested in 2024.

Through the acquisition of NRS, SalMar gained the ownership in the

development project Arctic Offshore Farming. The technology differs

from both Ocean Farm 1 and Smart Fish Farm where there are 2 cages

which can be submerged and a barge connected between the cages.

First production cycle started in 2023 and the harvest from the project

was completed in December 2023 and January 2024.

A third development project is also underway, this time for the

world’s first fully offshore fish farm suitable for the open ocean,

the Smart Fish Farm. SalMar has been granted eight development

licences for this novel deep-water project. In end September 2023,

site approval for one open ocean unit was granted to SalMar Aker

Ocean’s Smart Fish Farm, approximately 50 nautical miles west of

Frøya in Central Norway. Due to regulatory uncertainty SalMar Aker

Ocean decided that further work on offshore aquaculture in Norway

is currently on hold. The company will now fully focus on growth

semi-offshore and utilize the capacity of its existing two semi-off-

shore units for the production of sustainable Norwegian salmon. It

will also continue to explore opportunities outside of Norway

Organisation, Sustainability, and Social

Responsibility

It is SalMar’s goal to secure long-term profitability and growth through

sustainable aquaculture and processing activities, and by acting as

a responsible corporate citizen. For SalMar, the important thing is

what sustainability is actually about: the future. It concerns not only

the future of our children and grandchildren, but the protection of our

fellow citizens today. In this, lies an acknowledgement that we have

only one planet, with limited resources, which it is vital to preserve

and protect.

9999

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Today, the world’s population uses more resources than the planet

manages to generate, and food production accounts for a substantial

portion of humanity’s environmental and climate footprint. New ways

of producing food are needed for an ever-growing global population,

at the same time as we must minimise the impact we have on the

environment.

Salmon farming is one of the most environment-friendly ways of

producing food, affording considerable benefits in the form of space,

freshwater consumption and greenhouse gas emissions. Aquaculture

and salmon farming will therefore make a significant contribution to

providing a growing global population with healthy, protein-rich food

in the years ahead.

Sustainability in everything we do is one of SalMar’s key tenets. For us,

sustainability is about the way we operate as a company and how we

behave in the areas surrounding our operations. This includes taking

care of our employees, the salmon and the environment while devel-

oping the industry and moving society in a more sustainable direction.

SalMar aims to safeguard the seas, while maximising our production at

the terms of the salmon. This includes contributing to the development

of new technology, so that we can continue to reduce the biological

footprint of our production.

The Group recognises the diversity of its corporate social responsibility,

as an employer, producer, supplier of healthy food, user of the natural

environment and administrator of financial and intellectual capital.

Social responsibility is important for us, and we want everything we

do to stand the light of day. At the same time, we aim to minimise the

impact our operations have on the natural environment.

Our holistic approach rests on awareness of the link between caring

for people, economy, and the environment, which determines whether

something is sustainable. This is the core reason for why we think

sustainability in everything we do.

As an employer, SalMar aims to provide a safe and developing work-

place. The Group works continuously to enhance measures and pro-

cesses associated with health, safety, and the environment (HSE), as

well as provide professional development opportunities for manag-

ers and employees. Good employees, irrespective of gender, age, or

background, are crucial if we are to succeed in reaching our strategic

goals. At the same time, it is important that we provide an attractive

and safe working environment which makes it possible to attract and

retain the most talented people.

In 2023, SalMar employed a total of 2,674 full-time equivalents from

58 different countries. The workforce was made up of 704 females

and 1,970 males. The female ratio of the Executive Management

Team is 14%. SalMar works actively towards recruitment of women

in what has traditionally been a male dominated industry. Our goal is

to exhibit the vast opportunities for women in all parts of the indus-

try. This is done by actively targeting potential future employees (in

school, universities etc.) and having female representatives speak

about SalMar as a workplace.

The female ratio of employees was 26% in 2023 and increased in

all segments in SalMar except for in the Sales & Industry segment.

The female ratio is considerably higher at the Group’s Admin and

Harvesting & Processing plants than at its hatcheries and fish farms.

One of SalMar’s focus areas have been the Fish Farming segment, as

this has the lowest female ratio. This segment has seen an increase

in the female ratio for five straight years, more than doubling female

employees in this period. This shows that SalMar’s continuous efforts

to increase the female ratio of its workforce is effective.

In its Code of Conduct, the Group makes its policy clear with respect

to the promotion of diversity and equality. SalMar accepts no discrim-

ination, abuse or harassment of our workers or partners, and we treat

everyone with courtesy and respect no matter what their ethnicity,

gender, national or social background, age, functional capacity, sex-

ual orientation, religious faith, political convictions or other status.

Respect for the individual is the cornerstone of the company’s policy.

Everyone shall be treated with dignity and respect and shall not be

unfairly prevented from carrying out their duties and responsibili-

ties. This perspective arises from the recognition that diversity plays

a crucial role in creating an improved work environment, increased

adaptability, and ultimately, better long-term outcomes.

SalMar complies with national regulations also with regards to working

hours and sufficient rest. This is paramount to maintain SalMar’s strict

demands for safe operations.

Pursuant to section 3-3c of the Norwegian Accounting Act, the Board

of Directors has drawn up guidelines covering business ethics and cor-

porate social responsibility. These are available from the Group’s web-

site www.salmar.no. SalMar’s activities in sustainability and corporate

social responsibility, including human rights, labour rights, the working

environment, equality, discrimination, anti-corruption, activity duty

and the external environment, are described in further detail in the

sustainability report.

In 2022 and 2023, SalMar published sustainability policies on its

webpage. These are public statements from SalMar that give insight

into how SalMar conducts its endeavours while always considering

sustainability in everything we do.

100100

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Shares and Shareholders

In 2023 the share price increased 48 percent from the closing price

of NOK 384.80 at the end of 2022. The price on 29 December, the

last day of trading in 2023, was NOK 569.20 per share.

SalMar held its AGM on 8 June 2023. The AGM voted to pay a dividend

of NOK 20 per share. The shares were traded ex. dividend from 9 June,

with payment taking place on 22 June 2023.

SalMar held an extraordinary general meeting (EGM) on 23 October

2023 regarding capital reduction following completion of intra-group

merger with NTS AS. In December 2023, SalMar completed the share

capital reduction which implied that SalMar reduced its share capital by

NOK 3,275,000 from 36,284,730 to NOK 33,009,730 by cancellation

of 13,100,000 treasury shares.

As at 31 December 2023 SalMar ASA owned 278,854 treasury shares,

this corresponds to 0.2 percent of the total number of shares out-

standing as of 31 December 2023.

The number of outstanding shares in SalMar was 132,038,920 as

of 31 December 2023, divided between 22,998 shareholders. The

company’s major shareholder, Kverva Industrier AS, owns 45.4 percent

of the shares. The 20 largest shareholders own a total of 64.7 percent

of the shares.

The company’s Articles of Association contain no stipulations lim-

iting the transferability of the company’s shares. Furthermore, the

company is not aware of any agreements between shareholders

that limit the possibility of trading in or exercising voting rights with

respect to shares.

Corporate Governance

SalMar complies with the legislation, regulations, and recommenda-

tions to which a public limited company is subject, including Section

3-3b of the Norwegian Accounting Act on corporate governance, day-

to-day obligations of a company listed on the Oslo Stock Exchange and

the current version of the Norwegian Code of Practice for Corporate

Governance. These principles are discussed in detail in a separate chap-

ter of the annual report and are available from the company’s website.

The Group’s Board of Directors comprises five members elected by

the shareholders and two employee representatives. Three of the

board members are women, including one employee representative.

Changes in the Board’s Composition

As recommended by the nomination committee, the annual general

meeting (AGM) on 8 June 2023 voted to re-elect Margrethe Hauge

and Leif Inge Nordhammer as board members for a term of two years.

Information relating to the competence and background of the various

board members is available from SalMar’s website www.salmar.no.

101101

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Outlook

Market outlook

In 2024 figures from Kontali Analyse, a leading provider of aquaculture

data and research, estimate a limited supply growth of global harvest

volume. The global volume of salmon harvested is expected to Increase

with around 61,000 tonnes or 2 percent.

The harvested volume is expected to increase with 3 percent in Nor-

way, 9 percent in UK, 15 percent in Faroe Island, 4 percent in North

America and 10 percent in other markets. In Chile it is expected to

decrease with 5 percent.

The limited growth in supply while combined with continued strong

demand gives an optimistic market outlook for 2024.

Supply of Atlantic salmon

in 1,000 tonnes

whole fish equivalents (WFE)

2024E Change

Norway 1,525 +3 %

Chile 731 -5 %

UK 167 +9 %

North America 133 +4 %

Faroes 103 +15 %

Other countries 197 +10 %

Total, global supply 2,858 +2 %

Outlook for SalMar and associates

SalMar expects an increase in harvest volume in 2024. SalMar expects

to harvest 237,000 tonnes in Norway, SalMar Aker Ocean 7,000

tonnes and 15,000 tonnes in Iceland in 2024. In addition, SalMar

expects its share of the volume harvested by Norskott Havbruk (50

percent) to come to 18,500 tonnes in 2024. This totals a harvest

volume of 277,500 tonnes or an increase of 4% from 2023.

It is expected that around 40 percent of the volume will be harvested in

the first half of the year, with the remaining 60 percent in the second

half. In 2023, SalMar expects a contract share in Norway of around 25

percent for the full year of the expected volume harvested. The con-

tracts portfolio average price and volume is relatively stable through

the whole of 2024, where the prices on contracts are higher than the

contract prices in 2023. In addition to the fixed price contracts SalMar

also has several volume contracts where the price of the contract is

linked to the current spot market prices.

Over time, SalMar has invested heavily to increase its competence

and capacity to handle biological challenges in the best possible

way. SalMar has a high level of preparedness at its harvesting facility,

to ensure that extraordinary events can be handled in compliance

with the regulations and optimally for the fish welfare. In addition,

efforts are continuously being made to develop the most sustainable

and best production sites. In this context, SalMar’s offshore farming

strategy is important.

SalMar expects stable cost in the value chain in 2024. Feed is the

most important cost factor in salmon farming. SalMar expects feed

prices to be more stable in 2024 compared to the significant increase

experienced in 2022, due to inflationary pressure on raw materials.

Following the completion of the transactions with NTS, NRS and

SalmoNor, SalMar has reinforced its position as a leader in the aqua-

culture industry, and thereby wants to utilize this position to make

an important contribution to the sustainable development of salmon

farming, both coastal and offshore. As announced on the capital

markets day in September 2023 SalMar has a significant organic

growth potential within existing licence without the need for larger

investments. A total of 362,000 tonnes including relative share of

Scottish Sea Farms implying a growth of 35% from the harvested

volume in 2023 and 30% from the expected volume in 2024.

102102

Corporate Governance Report of the Board of DirectorsCorporate Governance Report of the Board of Directors

Investments

Due to the resource rent tax, all new larger industrial projects are

still on hold in SalMar in Norway. Therefore, SalMar is only finalizing

already sanctioned projects in 2024. SalMar expects to invest NOK

1.6 billion in its Norwegian operations. Maintenance investments

accounts for NOK 0.7 billion or around 2.8 NOK/kg in line with company

guidance of around 3 NOK/kg. Capacity investments account for NOK

0.7 billion where expansion of Vikenco accounts for the largest single

investment. In addition, construction of Tjuin will be finalized, Dåfjord

smolt facility will be upgraded and there are farming investments in

the value chain to reduce cost and improve fish welfare.

To unlock potential on Iceland one expects to invest NOK 0.2 billion

in 2024 where increased seawater farming capacity accounts for the

largest investment. In SalMar Aker Ocean one expects NOK 0.1 billion.

The Board’s assessment

Through hard work and dedication over many years, SalMar has built

a strong position in a growing aquaculture industry. And through the

transactions with NTS, NRS and SalmoNor SalMar has firmly positioned

itself as a leading company in the industry and the world’s second

largest salmon producer. Both Norway and Iceland benefit from

excellent conditions for the farming of salmon and in 2023 SalMar

has increased its presence in its core regions in Norway. SalMar will

continue to manage these resources in the best possible way for its

shareholders, employees, customers and affected local communities.

The SalMar Group is determined to maintain its position as one of

the world’s top aquaculture companies with sustained profitability in

the future, given its strong market standing. The Board of Directors

believes that SalMar is well-equipped to achieve this goal. SalMar is

committed to producing healthy food sustainably, and the increasing

global population requires more food. Salmon farming is one of the

most sustainable methods of food production, as it provides signifi-

cant advantages in terms of space utilization, freshwater consump-

tion, and greenhouse gas emissions. As a result, aquaculture and

salmon farming will make a significant contribution to supplying the

world’s expanding population with nutritious and protein-rich food in

the future, and SalMar will continue to focus on achieving sustainable

growth on the salmon’s terms.

However, the new tax regime in Norway from 2023 will have a major

impact on the capacity for innovation and investments in the Nor-

wegian aquaculture industry. This strengthens the need to seek

efficiency and economies of scale. Given the greater competition

from a growing number of salmon-producing countries, it is even more

important that the Norwegian government ensures Norway’s aqua-

culture sector has stable and predictable framework conditions.

In 2023, SalMar has demonstrated its capacity to adapt to chang-

ing market and regulatory conditions, delivering strong results and

successfully completing large transactions, realizing synergies while

building a solid financial position with a strong liquidity reserve. It is

important for SalMar to provide its 23,000 shareholders a competitive

return on invested capital. Due to strong results in 2023 and the

strong financial position the board of directors has resolved to propose

a cash dividend of NOK 35.00 per share for the financial year 2023.

The SalMar culture, expressed through our cultural tenets, is funda-

mental to the entire business, and our vision, “Passion for Salmon”, is

the vision that guides us on our way towards realising our ambition

of being the world’s best aquaculture company. SalMar’s employees

are our most important resource in our quest for further success.

Continuous development of the organisation and culture is therefore

a key focus area for the Group. The Board of Directors would like to

thank all the company’s employees for the dedicated efforts they put

in every single day. It is these efforts which have created the SalMar

Group’s excellent results year after year, and which will underpin our

continued success in the years ahead.

Frøya, 12 April 2024

Gustav Witzøe

Chair of the Board

Margrethe Hauge

Vice-Chair of the Board

Morten Loktu

Board Member

Arnhild Holstad

Board Member

Leif Inge Nordhammer

Board Member

Hans Stølan

Board Member

Employee representative

Frode Arntsen

CEO

Ingvild Kindlihagen

Board Member

Employee representative

103103

Consolidated Financial Statements 105

Notes to the Financial Statements for 2023 113

Annual Financial Statements of SalMarASA 186

Notes to the Financial Statements for

2023, SalMarASA 193

Statement by the Board of Directors and CEO 212

Independent Auditor’s Report 213

Financial

Statement and

Results

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated Financial

Statements

2023

SalMar Group

Consolidated Statement of

Profit or Loss

NOK1,000	Note	2023	2022
Revenues from contracts with customers	2.2	28,099,174	20,070,115
Other operating income		119,374	88,164
Revenue and other income		28,218,548	20,158,279
Cost of goods sold		12,880,225	9,599,414
Fair value adjustment included in cost of goods sold due to business combination	2.9	-722,809	-283,398
Salary and personnel expenses	2.3, 2.4, 2.5	2,453,907	1,893,764
Other operating expenses	2.6, 3.4	4,067,095	3,446,233
Depreciation and amortisation	3.1, 3.3, 3.4	1,419,159	1,001,053
Write-downs	3.3, 3.4	33,071	36,642
Total operating expenses		20,130,648	15,693,708
Operational EBIT		8,087,900	4,464,571
Production tax	2.6, 2.11	-208,374	-85,232
Onerous contracts	3.13	-237,346	126,330
Fair value adjustments	2.9	1,589,853	515,887
Fair value adjustment included in cost of goods sold due to business combination	2.9	-722,809	-283,398
Operating profit		8,509,224	4,738,158
Income/loss from from investments in associates and joint venture	3.5	-27,295	66,432
Financial items
Interest income	2.10	51,087	28,408
Financial income	2.10	29,737	95,052
Interest expenses	2.10	1,223,249	364,247
Financial expenses	2.10	60,183	1,771
Net financial items		-1,202,608	-242,558
Profit before tax from continuing operations		7,279,321	4,562,032
Income tax expense	2.11	4,533,736	953,996
Profit for the year from continuing operations		2,745,585	3,608,036
Profit after tax from discontinued operations	4.7	656,594	107,372
Profit for the year		3,402,179	3,715,408
Profit for the year attributable to:
Non-controlling interests	4.6	199,423	403,453
Shareholders in SalMarASA		3,202,756	3,311,955
Earnings per share	4.3, 4.11	24.36	27.64
Earnings per share - diluted	4.3, 4.11	24.33	27.60

105

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated Statement of Other

Comprehensive Income

NOK1,000	Note	2023	2022
Profit for the year		3,402,179	3,715,408
Other comprehensive income:
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Translation differences in associated companies and joint venture	3.5	93,024	21,444
Translation differences in group companies		164,010	124,028
Gain/loss on hedge of net investment	3.9	-68,442	-51,997
Gain/loss on cash flow hedges	3.9	375,879	200,931
Net change in costs of hedging	3.9	-39,165	69,290
Tax related to other comprehensive income	2.11	-59,020	-49,085
Net other comprehensive income that may be reclassified to profit or loss		466,286	314,611
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gain on defined benefit plans	2.5	708	3,422
Tax related to gain on defined benefit plans	2.5	-156	-753
Net other comprehensive income that will not be reclassified to profit or loss		552	2,669
Other comprehensive income		466,838	317,280
Total comprehensive income		3,869,017	4,032,688
Comprehensive income for the year attributable to Non-controlling interests	4.6	321,038	477,406
Shareholders in SalMarASA		3,547,979	3,555,282

106

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated Balance Sheet

NOK 1,000

Assets	Note	31.12.2023	31.12.2022
Non-current assets
Intangible assets
Licences	3.1, 3.12	15,216,687	14,875,519
Goodwill	3.1	3,011,250	2,999,859
Other intangible assets	3.1	456,660	415,674
Total intangible assets		18,684,597	18,291,052
Property, plant and equipment
Property, plant and equipment	3.3, 3.12	12,371,370	11,131,221
Right-to-use assets	3.4, 3.12	1,797,701	1,386,604
Total property, plant and equipment		14,169,071	12,517,825
Non-current financial assets
Investments in associates and joint venture	3.5	2,417,700	2,371,747
Investments in shares and other securities		17,102	42,434
Pension fund assets	2.5	2,985	2,802
Other receivables	3.7, 3.9	241,634	328,876
Total non-current financial assets		2,679,421	2,745,859
Total non-current assets		35,533,089	33,554,736
Current assets
Biological assets	3.6, 3.12	13,264,679	11,754,721
Other inventory	3.6, 3.12	1,229,653	929,877
Total inventory		14,494,332	12,684,598
Receivables
Trade receivables	3.7, 3.12	1,456,963	1,414,135
Other current receivables	3.7, 3.9	1,061,256	662,978
Total receivables		2,518,219	2,077,113
Cash and cash equivalents	3.10, 3.11	785,271	2,712,707
Total current assets		17,797,822	17,474,418
Assets held for sale	4.7	0	11,471,809
Total assets		53,330,911	62,500,963

107

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Frøya, 12 April 2024

Gustav Witzøe

Chair of the Board

Margrethe Hauge

Vice-Chair of the Board

Morten Loktu

Board Member

Arnhild Holstad

Board Member

Leif Inge Nordhammer

Board Member

Hans Stølan

Board Member

Employee representative

Frode Arntsen

CEO

Ingvild Kindlihagen

Board Member

Employee representative

Consolidated Balance Sheet, continued

Equity and Liabilities
Equity	Note	31.12.2023	31.12.2022
Paid-in equity
Share capital	4.2	33,010	36,285
Treasury shares	4.2	-70	-3,185
Share premium		10,016,688	12,182,189
Other paid-in equity		0	343,902
Total paid-in equity		10,049,628	12,559,191
Retained earnings
Retained earnings		9,851,408	6,796,778
Total equity attributable to shareholders of the parent		19,901,036	19,355,969
Non-controlling interests	4.6	3,177,806	4,798,794
Total equity		23,078,842	24,154,763
Liabilities
Non-current liabilities
Pension liabilities	2.5	8,020	17,877
Other non current liabilities	3.9	12,898	0
Deferred tax liability	2.11	6,724,797	1,927,804
Non-current interest-bearing debts	3.11, 3.12	12,211,226	18,349,972
Long-term lease liabilities	3.4, 3.11, 3.12	1,501,741	1,152,216
Total non-current liabilities		20,458,682	21,447,869
Current liabilities
Current interest-bearing debts	3.11, 3.12	1,680,742	3,442,121
Short-term lease liabilities	3.4, 3.11, 3.12	343,753	273,081
Trade payables	3.11	3,965,936	3,337,649
Tax payable	2.11	1,814,423	2,612,569
Public duties payable		534,636	350,512
Other current liabilities	3.9, 3.13	1,453,897	1,269,954
Total current liabilities		9,793,387	11,285,886
Liabilities directly associated with the assets held for sale	4.7	0	5,612,445
Total liabilities		30,252,069	38,346,200
Total Equity and Liabilities		53,330,911	62,500,963

108

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated statement of changes in equity

							Foreign				Attributable
					Other		currency			Cost of	to	Non-
		Share	Treasury	Share	paid-in		translation	Cashflow	Hedge of net	hedging	shareholders	controlling	Total
NOK 1,000	Note	capital	shares	premium	equity	Other equity	differences	hedges	investments	reserve	of the parent	interests	equity
As at 1 January 2022		29,450	-26	3,101,961	295,105	9,657,823	92,653	57,593	5,734	-9,944	13,230,349	2,252,827	15,483,176
Profit for the year		0	0	0	0	3,311,955	0	0	0	0	3,311,955	403,453	3,715,408
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Translation differences in associates and joint venture	3.5	0	0	0	0	0	21,444	0	0	0	21,444	0	21,444
Translation differences in subsidiaries		0	0	0	0	0	62,813	0	0	0	62,813	61,215	124,028
Gain/loss on hedge of net investment	3.9	0	0	0	0	0	0	0	-51,997	0	-51,997	0	-51,997
Gain/loss on cash flow hedges	3.9	0	0	0	0	0	0	184,145	0	0	184,145	16,786	200,931
Net change in costs of hedging	3.9	0	0	0	0	0	0	0	0	69,290	69,290	0	69,290
Tax related to other comprehensive income	2.11	0	0	0	0	0	0	-41,232	11,439	-15,244	-45,037	-4,048	-49,085
Net other comprehensive income that may be reclassified to profit or loss in subsequent periods		0	0	0	0	0	84,257	142,913	-40,558	54,046	240,658	73,953	314,611
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gain on defined benefit plans	2.5	0	0	0	0	3,422	0	0	0	0	3,422	0	3,422
Tax related to gain on defined benefit plans	2.5	0	0	0	0	-753	0	0	0	0	-753	0	-753
Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods		0	0	0	0	2,669	0	0	0	0	2,669	0	2,669
Other comprehensive income		0	0	0	0	2,669	84,257	142,913	-40,558	54,046	243,327	73,953	317,280
Total comprehensive income		0	0	0	0	3,314,624	84,257	142,913	-40,558	54,046	3,555,282	477,406	4,032,688
Transactions with shareholders
Share-based payment, expensed	2.4	0	0	0	51,818	1,522	0	0	0	0	53,340	926	54,266
Share-based payment, tax effect	2.11	0	0	0	-2,838	0	0	0	0	0	-2,838	0	-2,838
Share-based payment, release	2.4	0	30	0	0	-30	0	0	0	0	0	0	0
Dividend	4.2	0	0	0	0	-2,353,953	0	0	0	0	-2,353,953	-51,400	-2,405,353
Borrowed treasury shares	4.3	0	-8	-11,536	0	0	0	0	0	0	-11,544	0	-11,544
Issue of share capital	4.2	6,835	0	9,091,995	0	0	0	0	0	0	9,098,830	0	9,098,830
Contribution of equity in group companies	4.6	0	0	0	0	7,154	0	0	0	0	7,154	3,753	10,907
Transaction costs related to capital		0	0	-238	0	-67	0	0	0	0	-305	0	-305
contribution, net of tax
Acquisition of non-controlling interests	4.6	0	0	0	0	0	0	0	0	0	0	6,268,346	6,268,346
Treasury shares in subsidiaries	4.2	0	-3,181	0	0	-4,190,629	0	0	0	0	-4,193,810	-319,060	-4,512,870
Change in non-controlling interests	4.6	0	0	0	0	-40,155	0	0	0	0	-40,155	-3,832,936	-3,873,091
Reclassifications and Other changes		0	0	7	-183	3,702	0	10,093	0	0	13,619	-1,068	12,551
Total transactions with shareholders		6,835	-3,159	9,080,228	48,797	-6,572,456	0	10,093	0	0	2,570,338	2,068,561	4,638,899
At 31 December 2022		36,285	-3,185	12,182,189	343,902	6,399,991	176,910	210,599	-34,824	44,102	19,355,969	4,798,794	24,154,763

109

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated statement of changes in Equity, continued

							Foreign				Attributable
					Other		currency			Cost of	to	Non-
		Share	Treasury	Share	paid-in		translation	Cashflow	Hedge of net	hedging	shareholders	controlling	Total
NOK 1,000	Note	capital	shares	premium	equity	Other equity	differences	hedges	investments	reserve	of the parent	interests	equity
As at 1 January 2023		36,285	-3,185	12,182,189	343,902	6,399,991	176,910	210,599	-34,824	44,102	19,355,969	4,798,794	24,154,763
Profit for the year		0	0	-2,163,200	-392,469	5,758,425	0	0	0	0	3,202,756	199,423	3,402,179
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Translation differences in associates and joint venture	3.5	0	0	0	0	0	93,024	0	0	0	93,024	0	93,024
Translation differences in subsidiaries		0	0	0	0	0	79,415	0	0	0	79,415	84,595	164,010
Gain/loss on hedge of net investment	3.9	0	0	0	0	0	0	0	-68,442	0	-68,442	0	-68,442
Gain/loss on cash flow hedges	3.9	0	0	0	0	0	0	328,416	0	0	328,416	47,463	375,879
Net change in costs of hedging	3.9	0	0	0	0	0	0	0	0	-39,165	-39,165	0	-39,165
Tax related to other comprehensive income	2.11	0	0	0	0	0	0	-72,250	15,057	8,616	-48,577	-10,443	-59,020
Net other comprehensive income that may be reclassified to profit or loss in subsequent periods		0	0	0	0	0	172,439	256,166	-53,385	-30,549	344,671	121,615	466,286
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gain on defined benefit plans	2.5	0	0	0	0	708	0	0	0	0	708	0	708
Tax related to gain on defined benefit plans	2.5	0	0	0	0	-156	0	0	0	0	-156	0	-156
Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods		0	0	0	0	552	0	0	0	0	552	0	552
Other comprehensive income		0	0	0	0	552	172,439	256,166	-53,385	-30,549	345,223	121,615	466,838
Total comprehensive income		0	0	-2,163,200	-392,469	5,758,977	172,439	256,166	-53,385	-30,549	3,547,979	321,038	3,869,017
Transactions with shareholders
Share-based payment, expensed	2.4	0	0	0	43,750	2,857	0	0	0	0	46,607	1,133	47,740
Share-based payment, tax effect	2.11	0	0	0	766	2,670	0	0	0	0	3,436	0	3,436
Share-based payment, release	2.4	0	22	0	-22	0	0	0	0	0	0	0	0
Dividend	4.2	0	0	0	0	-2,628,651	0	0	0	0	-2,628,651	-136,981	-2,765,632
Sales of treasury shares	4.3	0	8	-4,626	0	16,162	0	0	0	0	11,544	0	11,544
Acquisition of interests with settlement in treasury shares	4.5, 4.6	0	52	0	4,073	112,763	0	0	0	0	116,888	130,377	247,265
Treasury shares in subsidiaries	4.6	0	-242	0	0	-318,818	0	0	0	0	-319,060	319,060	0
Change in non-controlling interests	4.6	0	0	0	0	-239,271	0	0	0	0	-239,271	-516,073	-755,344
Divestment of non-controlling interests	4.6	0	0	0	0	0	0	0	0	0	0	-1,737,163	-1,737,163
Share capital reduction	4.2	-3,275	3,275	0	0	0	0	0	0	0	0	0	0
Reclassifications and Other changes		0	0	2,325	0	3,270	0	0	0	0	5,595	-2,379	3,216
Total transactions with shareholders		-3,275	3,115	-2,301	48,567	-3,049,018	0	0	0	0	-3,002,912	-1,942,026	-4,944,938
At 31 December 2023		33,010	-70	10,016,688	0	9,109,949	349,349	466,765	-88,209	13,553	19,901,036	3,177,806	23,078,842

110

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

NOK 1,000	Note	2023	2022
Cash flow from operating activities
Profit before tax		7,279,321	4,562,032
Profit before tax from discontinued operations		684,567	91,098
Tax paid in the period	2.11	-608,301	-551,630
Depreciation, amortisation and write-downs	3.1, 3.3, 3.4	1,452,230	1,037,695
Employee share schemes charged to expenses	2.4	47,740	54,266
Income from associated companies and joint venture	3.5	27,295	-66,432
Gain related to remeasured shares in associated companies	3.5	0	-90,776
Gains on disposal of shares in group companies	4.7	-365,154	0
Gains/losses on sale of non-current assets	3.3	-31,005	0
Net interest expenses	2.10	1,172,162	335,839
Onerous contracts		237,346	-126,330
Fair value adjustments	2.9	-867,044	-232,489
Change in inventory / biological assets at cost		-903,550	-1,103,935
Change in trade receivables		-31,607	-158,776
Change in trade payables		620,955	44,178
Change in other accruals		105,409	412,092
Cash flow from operating activities related to discontinued operations	4.7	155,113	15,612
Net cash flow from operating activities		8,975,477	4,222,444
Cash flow from investing activities
Receipts from disposal of property, plant and equipment	3.3	4,031	104,473
Purchase of property, plant and equipment	3.3	-2,268,811	-2,265,008
Purchase of intangible assets	3.1	-83,512	-189,884
Receipts from disposal of group companies	4.4, 4.7	4,453,707	1,859,913
Receipts from disposal of other investments		45,000	0
Payments on business combinations, net of cash	4.5	0	-2,091,790
Dividends from associated companies	3.5	18,446	2,865
Dividends from other companies		6,664	0
Loan to third parties		-14,169	22,020
Interest received	2.10	25,086	4,112
Cash flow from investing activates related to discontinued operations	4.7	-411,853	-79,927
Net cash flow from investing activities		1,774,589	-2,633,226

Consolidated Statement

of Cash Flows

111

Financial Statement and Results Consolidated Financial StatementsFinancial Statement and Results Consolidated Financial Statements

Consolidated Statement of Cash Flows, continued

NOK 1,000	Note	2023	2022
Cash flow from financing activities
Proceeds from interest-bearing debts	3.11	7,788,052	11,604,620
Repayment of interest-bearing debts	3.11	-16,448,307	-4,458,033
Net change in overdraft	3.11	713,521	-127,923
Payment of instalments on lease liabilities	3.4, 3.11	-321,096	-229,333
Payment of interest on lease liabilities	3.4, 3.11	-102,177	-64,654
Interest paid	2.10	-1,145,257	-215,410
Dividend	4.2	-2,747,573	-2,405,353
Net proceeds from issuance of shares in group companies	4.6	0	10,907
Acquisition of non-controlling interests	4.6	-755,344	-3,873,091
Cash flow from financing activities related to discontinued operations	4.7	29,060	-77,494
Net cash flow from financing activities		-12,989,121	164,236
Net change in cash and cash equivalents		-2,239,055	1,753,454
Currency translation of cash and cash equivalents		-7,086	6,898
Cash and cash equivalents as at 01.01		2,712,707	901,644
Cash and cash equivalents discontinued operations at acquisition		0	369,416
Cash and cash equivalents discontinued operations as at 01.01		318,705	0
Cash and cash equivalents as at 31.12	3.10	785,271	3,031,412
Of which cash and cash equivalents in discontinued operations as at 31.12	4.7	0	318,705
Cash and cash equivalents excluding		785,271	2,712,707
discontinued operations as at 31.12
Unused drawing rights	3.11	9,754,227	8,133,813

112

Financial Statement and Results Notes to the Financial Statements for 2023Financial Statement and Results Notes to the Financial Statements for 2023

Notes to the Financial Statements for 2023

Part 1 General information

and significant

accounting policies

Note 1.1 General information 114

Note 1.2 Basis of preparation 114

Note 1.3 Principles of consolidation 115

Note 1.4 Principles of classification 116

Note 1.5 Functional currency and

translation of foreign

currencies 116

Note 1.6 Statement of Cash Flows 116

Note 1.7 Use of estimates 117

Part 2 Financial results

Note 2.1 Business segments 118

Note 2.2 Revenues from contracts

with customers and

material customers 121

Note 2.3 Salary and personnel

expenses: 122

Note 2.4 Share-based incentive

scheme 125

Note 2.5 Pensions plans 127

Note 2.6 Other operating expenses 128

Note 2.7 Government grants 129

Note 2.8 Audit fees 129

Note 2.9 Fair value adjustments 129

Note 2.10 Net financial items 130

Note 2.11 Income tax, resource rent

tax and production tax 131

Part 3 Assets and liabilities

Note 3.1 Intangible assets 134

Note 3.2 Impairment of non-

financial assets 138

Note 3.3 Property, plant and

equipment 140

Note 3.4 Right-of-use assets and

lease liabilities 142

Note 3.5 Investments in associated

companies and joint

ventures 145

Note 3.6 Biological assets and other

inventories 148

Note 3.7 Trade and other

receivables 151

Note 3.8 Financial assets and

financial liabilities 152

Note 3.9 Hedging activities and

derivatives 155

Note 3.10 Cash & cash equivalents 159

Note 3.11 Interest-bearing liabilities 160

Note 3.12 Mortgage and guarantees 164

Note 3.13 Current liabilities 165

Part 4 Other Notes

Note 4.1 Financial risk management 166

Note 4.2 Share capital and

shareholders 169

Note 4.3 Earnings per share 171

Note 4.4 Group companies 172

Note 4.5 Business combinations and

other investments in group

companies 173

Note 4.6 Non-controlling interests 176

Note 4.7 Discontinued operations 180

Note 4.8 Related party transactions 182

Note 4.9 Climate risk 183

Note 4.10 Allegations of price

collusion and events

occurring after the

reporting period 183

Note 4.11 Alternative performance

measures 184

113

Financial Statement and Results Notes to the Financial Statements for 2023 Note 1.1 General information

Part 1 General information and significant accounting policies

NOTE 1.1 General information

SalMar ASA is a listed public limited liability company, registered and

domiciled in Norway. The company's shares are listed on the Oslo Stock

Exchange. The company's head office is located at Industriveien 51,

7266 Kverva , in the municipality of Frøya.

SalMar's consolidated financial statements of 31 December 2023 and

for the year as a whole is comprised of SalMar ASA and its subsidiaries,

as well as the Group's share of associates and joint venture accounted

for using the equity method. The Group operates in Norway, Iceland

and Asia, and has operations in Scotland through an associate.

The annual financial statements were formally approved by the Board

of Directors on 12 April 2024.

NOTE 1.2 Basis of preparation

SalMar's consolidated financial statements is comprised of the state-

ment of profit or loss, statement of other comprehensive income,

balance sheet, statement of changes in equity and Statement of

Cash Flows. The consolidated financial statements have been pre-

pared in accordance with IFRS® Accounting Standards and inter-

pretations issued by the IFRS Interpretations Committee (IFRS IC)

applicable to companies reporting under IFRS as adopted by EU. The

financial statements comply with IFRS as issued by the International

Accounting Standards Board (IASB) at 31 December 2023, as well as

disclosure requirements pursuant to the Norwegian Accounting Act

as at 31 December 2023.

Significant accounting principles relating to specific accounting

lines and accounting items are described in the introduction to the

relevant notes.

The consolidated financial statements are presented in Norwegian

kroner (NOK). The financial statements have been prepared on a his-

torical cost basis, except for the following:

• Biological assets – measured at fair value (Note 3.6)

• Financial derivatives - measured at fair value (Note 3.8)

• Other shares and securities – measured at fair

value (Note 3.8)

New and amended standards adopted by the group

The Group applied for the first-time certain standards and amend-

ments, which are effective for annual periods beginning on or after

1 January 2023. The Group has not early adopted any other stand-

ard, interpretation or amendment that has been issued but is not

yet effective.

Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS

Practice Statement 2

The amendments to IAS 1 and IFRS Practice Statement 2 Making

Materiality Judgements provide guidance and examples to help enti-

ties apply materiality judgements to accounting policy disclosures.

The amendments have had an impact on the Group’s disclosures of

accounting policies, but not on measurement, recognition or presenta-

tion of any items in the Group’s financial statements.

Definition of Accounting Estimates - Amendments to IAS 8

The amendments to IAS 8 clarify the distinction between changes in

accounting estimates, changes in accounting policies and the correc-

tion of errors. The amendments had no impact on the Group’s consol-

idated financial statements.

New standards and interpretations not yet adopted

At the end of 2023 there are some amendments to existing standards

that are not yet effective. There are no amendments that is expected

to have a significant impact on the Group's financial statements.

Financial Statement and Results Notes to the Financial Statements for 2023

114

Financial Statement and Results Notes to the Financial Statements for 2023 Note 1.3 Principles of consolidation

NOTE 1.3 Principles of consolidation

SalMar's consolidated financial statements encompass SalMar ASA

and its subsidiaries as at 31 December 2023.

Subsidiaries are all entities over which the group has control. The

group controls an entity where the group is exposed to, or has rights

to, variable returns from its involvement with the entity and has the

ability to affect those returns through its power to direct the activ-

ities of the entity. If the Group has a majority of the voting rights in

an entity, the entity is presumed to be a subsidiary of the Group. To

substantiate this presumption, and where the Group does not hold

a majority of the voting rights, the Group considers all relevant facts

and circumstances to determine whether the Group has control over

the entity in which it has invested. This includes assessing the size

of its shareholding, its voting share, the shareholder structure and its

relative strength therein, as well as options controlled by the Group,

shareholder agreements or other agreements. This assessment is

performed for each investment. A reassessment is performed when

facts and circumstances indicate that changes have taken place in

one or more of the factors determining control .

The acquisition method of accounting is used to account for business

combinations by the group. Subsidiaries are fully consolidated from

the date on which control is transferred to the group. They are decon-

solidated from the date that control ceases. The entity perspective is

applied in connection with acquisitions where control is established.

The exception is goodwill, where for each acquisition it is optional

whether to recognise the controlling owners' share or 100 %. In the

cases where the fair value of the acquired assets exceeds the amount

paid, the difference is treated as income in profit and loss.

Inter-company transactions, balances and unrealised gains on trans-

actions between group companies are eliminated. Unrealised losses

are also eliminated unless the transaction provides evidence of an

impairment of the transferred asset. Accounting policies of subsidiaries

have been changed where necessary to ensure consistency with the

policies adopted by the group .

Non-controlling interests in the results and equity of subsidiaries

are shown separately in the consolidated statement of profit or loss,

statement of comprehensive income, statement of changes in equity

and balance sheet respectively.

The group treats transactions with non-controlling interests that do

not result in a loss of control as transactions with equity owners of

the group. A change in ownership interest results in an adjustment

between the carrying amounts of the controlling and non-controlling

interests to reflect their relative interests in the subsidiary. Any dif-

ference between the amount of the adjustment to non-controlling

interests and any consideration paid or received is recognised in a sep-

arate reserve within equity attributable to owners of SalMar ASA.

When the Group no longer has control, any remaining shareholding

is measured at fair value, with changes in value recognised through

profit and loss. In connection with its future recognition as an invest-

ment, associate, jointly controlled entity or financial asset, fair value

is deemed to equal acquisition cost. Amounts which were previously

recognised in OCI with respect to this company are treated as if the

Group had divested the underlying assets and liabilities. This may

mean that amounts which have previously been recognised in OCI

are reclassified to profit and loss .

Financial Statement and Results Notes to the Financial Statements for 2023

115

Financial Statement and Results Notes to the Financial Statements for 2023 Note 1.4 Principles of classification

NOTE 1.4 Principles of classification

Changes in the fair value of biological assets are presented as fair

value adjustments and are included in the Group's operating profit/

loss. Fair value adjustments also includes changes in the unrealised

value of Fish Pool contracts. Operational EBIT is reported before fair

value adjustment, changes in onerous contracts and production tax in

the period in order to show the Group's underlying sales performance

during the period .

NOTE 1.5 Functional currency and translation of foreign currencies

The consolidated financial statements are presented in Norwegian

kroner (NOK), which is the parent company's functional currency.

Foreign currency transactions are translated into the functional cur-

rency using the exchange rates at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of

such transactions, and from the translation of monetary assets and

liabilities denominated in foreign currencies at year end exchange

rates, are generally recognised in profit or loss. They are deferred in

other comprehensive income if they relate to qualifying cash flow

hedges and qualifying net investment hedges.

The results and financial position of foreign operations that have

a functional currency different from the presentation currency are

translated into the presentation currency as follows:

a. assets and liabilities for each balance sheet presented

are translated at the closing rate at the date of that

balance sheet

b. income and expenses for each statement of profit or loss

and statement of comprehensive income are translated at

average exchange rates

c. all resulting exchange differences are recognised in other

comprehensive income.

NOTE 1.6 Statement of Cash Flows

The Group's Statement of Cash Flows shows a breakdown of the

Group's overall cash flow into operating, investing and financing activi-

ties. The statement shows the individual activity's impact on liquid

assets. Cash flow deriving from the acquisition and sale of businesses

is presented under investing activities.

Financial Statement and Results Notes to the Financial Statements for 2023

116

Financial Statement and Results Notes to the Financial Statements for 2023 Note 1.7 Use of estimates

NOTE 1.7 Use of estimates

Preparation of the financial statements in accordance with IFRS

requires management to make evaluations, estimates and assumptions

which affect the application of accounting principles and the value of

assets and liabilities recognised in the Consolidated balance sheet as

well as income and expenses in the Statement of profit or loss for the

financial year. Estimates and their underlying assumptions are based

on past experience and other factors deemed relevant and probable

at the time the evaluations are made. These evaluations affect the

book value of the assets and liabilities whose valuation is not based

on other sources. Estimates are reviewed continuously and final values

and results may differ from these estimates. Changes in accounting

estimates are included in the period in which the changes occur.

The following evaluations and estimates are considered to be sig-

nificant for the Group:

Fair value of the biomass

Biological assets held at the Group's sea farms are measured in accord-

ance with IAS 41. The principles for calculating fair value are described

in Note 3.6 "Biological assets and other inventory".

The valuation is based on a number of assumptions that require

considerable discretionary judgement. The key assumptions relate

to volume, costs, price and the discount rate.

The estimated volume at harvest is based on the number of fish held

at sea farms, adjusted for estimated growth and mortality from the

time the fish were transferred to the sea until they have actually

been harvested. The actual volume harvested may deviate from the

estimated volume as a result of biological developments. Uncertainty

with regard to biological developments may affect the date of harvest

and therefore the discounting period in the model.

Expected market prices underpin the measurement of fish at fair

value. The industry considers the Fish Pool forward price to be the

best estimate of market prices. Historically, the market price for fish

has proved susceptible to relatively large fluctuations from period

to period and between seasons. The price achieved will moreover,

differ depending on the size and quality of the fish at harvest. At

the same time, the date of harvest will depend on the fish's biological

development.

There is considerable uncertainty to the estimated remaining pro-

duction costs to harvest. Biological challenges, such as disease and

sea lice infestations, will affect fish-related costs. In addition, there

is uncertainty related to the price of other important input factors,

such as fish feed.

Expected future cash flows for the individual sites are discounted

by a monthly discount factor. The discount factor is comprised of

several elements (see Note 3.6 "Inventory and biological assets" for

further details). As described in Note 3.6, a synthetic licence fee and

site leasing cost is added to the discount factor in the model, instead

of these elements being treated as a cost in the calculation. In order

to engage in the farming of salmon, it is necessary to have access

to infrastructure in the form of production licences and sites. The

market price for a production licence in today's market is high, and it

is reasonable to assume that in a hypothetical market there would be

a considerable cost attached to use of the infrastructure and licences

necessary to operate an aquaculture business. This cost is reflected

as an element of the discount rate and will be subject to considerable

discretionary judgement.

Fair value at acquisition

In connection with an acquisition, the cost price of the acquired

entity must be allocated such that the opening balance in the

Group's accounts reflects the estimated fair value of the acquired

assets and liabilities. To determine the fair value at acquisition, alterna-

tive methods are used to determine the fair value of assets for which

there is no active market. Value excess identifiable assets and liabilities

is recognised in the Consolidated balance sheet as goodwill. If the

fair value of equity in the acquired entity exceeds the consideration

paid, the excess amount is immediately recognised as income. The

allocation of cost price in connection with business combinations is

updated if, no later than 12 months after the acquisition took place,

new information is obtained with respect to fair value on the date of

takeover and assumption of control.

Financial Statement and Results Notes to the Financial Statements for 2023

117

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.1 Business segments

Part 2 Financial results

NOTE 2.1 Business segments

Accounting policies

The Group's business areas comprise of Fish Farming, Sales & Industry

and the Group's operations in Iceland which are reported as a separate

unit and are defined as a separate segment. In addition, SalMar Aker

Ocean, the Group's offshore farming is defined as a separate segment.

Fish farming in Norway is divided into two regions, Fish Farming

Central Norway and Fish Farming Northern Norway, which are defined

as separate segments, and are reported and administered as such

internally. The Group’s hatchery operations are also included in these

segments. The operating unit Icelandic Salmon, located in Iceland, is

a fully integrated aquaculture company, with its own hatchery, sea

farms, harvesting plant and sales force. This segment’s combined

results are reported through the business segment Icelandic Salmon.

SalMar Aker Ocean is a partnership between SalMar (85 per cent

ownership) and Aker (15 per cent) that specialise in offshore farming.

The company has two semi-offshore units in operation, Ocean Farm

1 in Central Norway and Arctic Offshore Farming in Northern Norway.

Group management evaluates the segments’ performance on the

basis of Operational EBIT.

The column Other/Eliminations includes costs relating to share-based

employee cost, R&D costs relating to jointly operated licences and

other overheads not allocated to segments. In addition, it includes

transaction costs from business combinations, restructuring cost

and for 2022 costs incurred in the settlement of allegations of price

collusion related to lawsuits in North America.

Sales between segments are carried out in accordance with the

arm’s length principle. When revenues from external parties are

reported to group management, they are measured at the same

amount recognised in profit and loss. Assets and liabilities are not

reported to group management at segment level .

Financial Statement and Results Notes to the Financial Statements for 2023

118

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.1 Business segments

	Fish Farming	Fish Farming
	Central	Northern	Sales &	Icelandic	SalMar Aker	Other/
2023 (NOK 1,000)	Norway	Norway	Industry	Salmon	Ocean	Eliminations	SalMar Group
External operating revenue - sale of goods and services	170,134	50,825	26,017,108	1,861,107	0	0	28,099,174
Internal operating revenue - sale of goods and services	12,128,520	7,829,649	1,057,997	1,284	172,834	-21,190,283	0
TOTAL revenues from contracts with customers	12,298,654	7,880,474	27,075,104	1,862,391	172,834	-21,190,283	28,099,174
Compensation	10,998	8,989	0	0	0	0	19,987
Other operating income	109,673	4,855	18,982	8,865	1	-42,989	99,387
Revenue and income	12,419,325	7,894,318	27,094,086	1,871,256	172,835	-21,233,272	28,218,548
Depreciation and amortisation	656,799	362,578	201,762	103,160	77,637	17,222	1,419,159
Write-downs	0	16	1,965	0	-7,543	38,633	33,071
Other operating expenses	7,150,100	4,129,703	26,636,056	1,537,896	155,313	-20,930,650	18,678,418
Operational EBIT	4,612,426	3,402,021	254,303	230,199	-52,572	-358,478	8,087,900
Production tax							-208,374
Onerous contracts							-237,346
Fair value adjustments							1,589,853
Fair value adjustment included in cost of goods sold due to business combination							-722,809
Operating profit/loss							8,509,224
Income from investments in associates and joint venture							-27,295
Net financial items							-1,202,608
Profit before tax							7,279,321
Tax							4,533,736
Profit for the year from continuing operations							2,745,585
Profit after tax from discontinued operations							656,594
Profit for the year							3,402,179
Investments in PP&E	957,299	561,041	357,222	294,138	98,114	997	2,268,811
Investments in right-to-use assets	723,657	38,379	0	9,132	0	0	771,169
Investments in licences	255,651	32,571	0	0	0	0	288,223

Financial Statement and Results Notes to the Financial Statements for 2023

119

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.1 Business segments

	Fish Farming	Fish Farming
	Central	Northern	Sales &	Icelandic	SalMar Aker	Other/
2022 (NOK 1,000)	Norway	Norway	Industry	Salmon	Ocean	Eliminations	SalMar Group
External operating revenue - sale of goods and services	3,317	50,825	18,429,251	1,586,722	0	0	20,070,115
Internal operating revenue - sale of goods and services	8,831,134	4,830,067	675,897	7,402	0	-14,344,500	0
TOTAL revenues from contracts with customers	8,834,451	4,880,892	19,105,148	1,594,124	0	-14,344,500	20,070,115
Compensation	3,901	0	0	0	32,460	10	36,371
Other operating income	33,971	2,231	36,267	1,052	0	-21,728	51,793
Revenue and income	8,872,323	4,883,123	19,141,415	1,595,176	32,460	-14,366,219	20,158,279
Depreciation and amortisation	480,084	186,472	176,278	75,472	72,420	10,328	1,001,053
Write-downs	2,788	0	213	0	33,641	0	36,642
Other operating expenses	4,790,235	2,170,897	20,251,179	1,153,761	81,167	-13,791,227	14,656,013
Operational EBIT	3,599,217	2,525,754	-1,286,255	365,943	-154,769	-585,319	4,464,571
Production tax							-85,232
Onerous contracts							126,330
Fair value adjustments							515,887
Fair value adjustment included in cost of goods sold due to business combination							-283,398
Operating profit/loss							4,738,158
Income from investments in associates and joint venture							66,432
Net financial items							-242,558
Profit before tax							4,562,032
Tax							953,996
Profit for the year from continuing operations							3,608,036
Profit after tax from discontinued operations							107,372
Profit for the year							3,715,408
Investments in PP&E	1,291,718	244,919	280,340	168,200	265,565	14,265	2,265,008
Investments in PP&E through business combinations	999,317	1,121,628	163,367	195,909	0	99,259	2,579,479
Investments in right-to-use assets	49,107	56,313	5,220	28,148	3,509	0	142,296
Investments in right-to-use assets through business combinations	163,499	270,558	40,094	0	0	72,753	546,905
Investments in licences	50,000	0	0	2,812	0	0	52,812
Investments in licences through business combinations	2,968,852	4,293,183	0	3,857	0	0	7,265,892

Financial Statement and Results Notes to the Financial Statements for 2023

120

Financial Statement and Results Notes to the Financial Statements for 2023

NOTE 2.2 Revenues from contracts with customers and material customers

Accounting policies

Income from the sale of goods comes mainly from the sale of fresh

whole Atlantic salmon and a wide selection of fresh and frozen salmon

products, either on spot sales or from contracts. Income from the

sale of services mainly relates to the sale of harvesting services.

Revenue is recognised when control of the goods is transferred to

the customer at an amount that reflects the consideration to which

the group expects to be entitled in exchange for these goods. This is

typically when the goods are picked up by the carrier or on delivery to

a terminal or the customer. This depends on the delivery conditions

and varies from customer to customer. The normal credit period is 30

days net. Income from harvesting services is recognised as income as

the services are provided.

For further details, see Note 2.1 for operating revenues relating to

the Group's business segments.

Specification of revenues (NOK 1,000)	2023	2022
Sale of goods	27,828,296	19,800,190
Sale of services	270,878	269,925
Total revenues from contracts	28,099,174	20,070,115
with customers

No individual customers have accounted for more than 10 per cent

of the Group's revenue in the past two years.

Specification of the Group’s revenues by geographic market	2023	%	2022	%
Asia	6,433,961	22.9 %	4,729,240	23.6 %
USA/Canada	5,174,950	18.4 %	4,155,643	20.7 %
Europe, ex. Norway	9,716,399	34.6 %	8,369,116	41.7 %
Norway	6,444,116	22.9 %	2,269,477	11.3 %
Other	329,748	1.2 %	546,638	2.7 %
Total Revenues from contracts with customers	28,099,174	100.0 %	20,070,115	100.0 %

Specification of the Group’s revenues by currency	2023	%	2022	%
NOK	8,406,400	29.9 %	4,318,522	21.5 %
JPY	1,223,998	4.4 %	1,046,147	5.2 %
GBP	289,588	1.0 %	253,989	1.3 %
USD	9,941,620	35.4 %	7,371,387	36.7 %
EUR	7,441,625	26.5 %	6,315,563	31.5 %
SEK	335,321	1.2 %	310,512	1.5 %
KRW	61,089	0.2 %	67,651	0.3 %
CAD	361,234	1.3 %	347,875	1.7 %
CHF	2,174	0.0 %	2,167	0.0 %
ISK	36,125	0.1 %	36,301	0.2 %
Total Revenues from contracts with customers	28,099,174	100.0 %	20,070,115	100.0 %

Note 2.2 Revenues from contracts with

customers and material customers

Financial Statement and Results Notes to the Financial Statements for 2023

121

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.3 Salary and personnel expenses:

NOTE 2.3 Salary and personnel expenses:

Salary and personnel expenses:

NOK 1,000	2023	2022
Salaries and other short-term employee benefits	2,058,602	1,548,764
Social security expenses	157,358	117,907
Pension expenses	107,763	92,498
Employee share schemes charged to expenses	47,740	54,266
Other benefits	82,443	80,329
Total	2,453,907	1,893,764

Average number of full-time employee equivalent in the Group 2,674 2,266

Loans and guarantees granted to employees:

NOK 1,000	Loans	Guarantees
Employees	251	0

Financial Statement and Results Notes to the Financial Statements for 2023

122

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.3 Salary and personnel expenses:

Remuneration paid to Executive Management and Board of Directors:

Reference is made to the Board's guidelines for remuneration and other benefits for SalMar ASA's senior

executives adopted by the ordinary general meeting on 8 June 2021.

		Fixed remuneration						Variable remuneration
				Total fixed				Total variable	Total
Executive Management 2023 (NOK 1,000)	Base salary	Pension	Benefits	remuneration	Severance pay	Bonus	Shares	remuneration	remuneration
Frode Arntsen, CEO	4,461	87	10	4,559	0	850	1,145	1,995	6,554
Linda Litlekalsøy Aase, former CEO	0	0	0	0	2,043	0	0	2,043	2,043
Ulrik Steinvik, CFO	2,559	83	10	2,652	0	800	867	1,667	4,319
Roger Bekken, COO Farming	3,160	95	10	3,265	0	800	1,026	1,826	5,091
Simon Andre Søbstad, COO Sales & Industry	2,179	175	10	2,364	0	650	595	1,245	3,609
Eva Haugen, Director Quality Management/HSE	1,550	83	10	1,643	0	450	572	1,022	2,664
Arthur Wisniewski, Director Human Resource Management	1,861	77	10	1,948	0	650	600	1,250	3,199
Runar Sivertsen, Chief Strategy Officer	1,838	77	10	1,925	0	650	512	1,162	3,086
Total earned 2023	17,607	676	73	18,356	2,043	4,850	5,317	12,210	30,565
		Fixed remuneration					Variable remuneratio n
				Total fixed				Total variable	Total
Executive Management 2022 (NOK 1,000)	Base salary	Pension	Benefits	remuneration	Severance pay	Bonus	Shares	remuneration	remuneration
Frode Arntsen, CEO, former COO Industry & Sales	2,710	84	9	2,804	0	750	765	1,515	4,319
Linda Litlekalsøy Aase, CEO	2,576	55	117	2,749	6,643	1,800	0	8,443	11,191
Gustav Witzøe, CEO	1,090	34	3	1,127	0	0	0	0	1,127
Ulrik Steinvik, CFO, former Director Business Improvement	2,081	80	9	2,170	0	670	673	1,343	3,514
Gunnar Nielsen, CFO	1,583	18	6	1,607	0	0	0	0	1,607
Trine Sæther Romuld, CFO & COO	1,051	31	2	1,084	0	2,943	0	2,943	4,028
Roger Bekken, COO Farming	2,454	91	9	2,555	0	700	782	1,482	4,037
Simon Andre Søbstad, COO Sales & Industry 7	1,413	45	11	1,468	0	380	428	808	2,277
Eva Haugen, Director Quality Management/HSE	1,384	79	9	1,473	0	360	460	820	2,292
Arthur Wisniewski, Director Human Resource Management	1,660	75	9	1,745	0	600	451	1,051	2,796
Runar Sivertsen, Chief Strategy Officer	1,432	75	9	1,516	0	535	358	893	2,409
Total earned 2022	19,434	668	196	20,298	6,643	8,738	3,917	19,298	39,596
1	From 24 October 2022
2	From 9 May 2022 to 23 October 2022. Ms Aase had a severance agreement of one year fixed and variable remuneration. 2/3 of the severance pay was settled as per 31.12.2022.
3	Until 9 May 2022
4	From 27 October 2022
5	From 1 April 2022 to 26 October 2022
6	Until 31 March 2022
7	From 28 October 2022

Financial Statement and Results Notes to the Financial Statements for 2023

123

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.3 Salary and personnel expenses:

Board of Directors 2023 (NOK 1,000)	Annual base fee	Audit and Risk Committee	Nomination Committee	Salary and benefits	Total remuneration
Gustav Witzøe, Chair of the Board	545	0	0	103	648
Leif Inge Nordhammer, Board member	305	0	0	0	305
Margrethe Hauge, Vice-Chair of the Board	305	130	0	0	435
Arnhild Holstad, Board member	305	0	0	0	305
Morten Loktu, Board member	305	138	0	0	443
Employee representatives
Ingvild Kindlihagen, Board Member (from 8 June 2023)	80	0	0	902	982
Hans Stølan, Board Member (from 8 June 2023)	80	0	0	504	584
Nomination Committee
Bjørn M. Wiggen, Chair of the Nomination Committee	0	0	44	0	44
Endre Kolbjørnsen	0	0	28	0	28
Karianne O. Tung	0	0	28	0	28
Former members of the Board of Directors and the Nomination Committee
Simon Andre Søbstad, Employee representatives (until 7 June 2023)	73	0	0	0	73
Tone Ingebrigtsen, Employee representatives (until 7 June 2023)	73	0	0	0	73
Total remuneration 2023	2,070	268	100	1,509	3,946
8 Full period effect on audit-and risk committee

Board of Directors 2022 (NOK 1,000)	Annual base fee	Audit and Risk Committee	Nomination Committee	Salary and benefits	Total remuneration
Gustav Witzøe, Chair of the Board (from 8 June 2022)	260	0	0	0	260
Leif Inge Nordhammer, Board member (Chair of the Board until 8 June 2022)	395	0	0	0	395
Margrethe Hauge, Vice-Chair of the Board	283	123	0	0	405
Arnhild Holstad, Board member (from 8 June 2022)	145	0	0	0	145
Morten Loktu, Board member (from 8 June 2022)	145	43	0	0	188
Employee representatives
Simon Andre Søbstad, Board Member	141	0	0	2,277	2,418
Tone Ingebrigtsen, Board Member	141	0	0	1,311	1,453
Nomination Committee
Bjørn M. Wiggen, Chair of the Nomination Committee	0	0	41	0	41
Endre Kolbjørnsen	0	0	26	0	26
Karianne O. Tung	0	0	26	0	26
Former members of the Board of Directors and the Nomination Committee
Magnus Dybvad, Board Member (until 8 June 2022)	138	40	0	0	178
Linda Litlekalsøy Aase, Board Member (former representative until 9 May 2022)	138	0	0	0	138
Total remuneration 2022	1,785	205	92	3,588	5,670

Financial Statement and Results Notes to the Financial Statements for 2023

124

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.4 Share-based incentive scheme

NOTE 2.4 Share-based incentive scheme

Accounting policies

The Group has a share-based incentive scheme, whereby the compa-

nies receive services from the employees in return for Restricted Share

Units (RSUs) in the Group. The fair value of the services received by the

business units from the employees in return for the RSU entitlements

awarded is recognised as an expense.

The fair value of RSU entitlements is established when they are

granted. The fair value of RSU entitlements that are not at mar-

ket terms are valued at the share price in effect when the RSUs

are granted. The probability of the performance criteria being met

is considered when assessing how many RSU entitlements will be

redeemed. The fair value of RSU entitlements that are not at market

terms is calculated using a Monte-Carlo simulation.

The value is established when they are granted and charged in profit

and loss over the RSU's vesting period, with a corresponding increase

in paid-in equity. Employers' national insurance contributions are

recognised over the vesting period .

Restricted Share Unit Plan (RSU):

In accordance with the authorisation granted by the company's Annual

General Meeting, SalMar ASA's Board of Directors has implemented

a share-based incentive scheme (Restricted Share Unit Plan) for senior

executives and key personnel employed by the company and its sub-

sidiaries. As at 31 December 2023, the scheme encompassed up to

323,380 shares and has a term of three years. The company's board

members do not receive RSUs, with the exception of those elected by

the employees, who may take part in the programme in their capacity

as employees. The company's obligations under the scheme will be

covered by its existing holding of treasury shares.

Participants of the plan are granted Restricted Share Units (RSUs)

free of charge. These will be released and transferred as shares to

participants after a vesting period subject to predefined performance

criteria. The shares are then transferred to the employee free of

charge. The plan comprises three vesting periods of, respectively,

one, two and three calendar years. Each vesting period covers 1/3

of the total annual RSUs in the plan. One RSU affords a contingent

entitlement to one share. The award of RSUs in each of the three

vesting periods rests on the following performance criteria:

• 1/3 of the RSUs will vest irrespective of the

performance criteria.

• 1/3 of the RSUs will vest provided that SalMar

achieves a better EBIT/kg ratio than other aquaculture

enterprises listed on the Oslo Stock Exchange during the

vesting period.

• 1/3 of the RSUs will vest provided that SalMar’s shares

deliver a higher total shareholder return (TSR) than

a defined group of comparable companies during the

vesting period.

The plan stipulates that RSUs will vest only if the participant is still

an employee of the Group. The total gains from released RSUs dur-

ing the course of one calendar year may not exceed 100 % of the

participant’s basic salary.

The fair value of the RSU entitlements is calculated on the date they

are granted. The total fair value of the entitlements as at 31 Decem-

ber 2023 is calculated to be NOK 184.1million (2022: NOK 114.5 mil-

lion). The cost is expensed over the vesting period, and a total of

NOK 43.4 million was recognised in connection with the scheme in

2023 (2022: NOK 51.8 million). Provisions for employers' national

insurance contributions in respect of the scheme have also been

made. The expense is recognised to the extent that the performance

criteria are met.

The fair value of RSU entitlements that are not at market condition is

set as the share price on the date the award was made. The probability

of the performance criteria being met is taken into account when

assessing how many RSU entitlements will be redeemed. When the

2023 award was formally made on 19 December 2023, the share

price was NOK 571.44. (2022: NOK 379.60).

The fair value of the RSU entitlements that are at market terms

is calculated using a Monte-Carlo simulation. The most important

input data when calculating the value of these RSU entitlements is

the share price on the date the award was made, volatility, risk-free

interest rate, expected yield and the vesting period. Based on the

Monte-Carlo simulation, each RSU entitlement is worth NOK 556.89

for those awarded on 19 December 2023, NOK 289.99 for those

awarded on 21 December 2022 and NOK 544.46 for those awarded

on 20 December 2021.

In 2023, 87,990 RSUs were exercised. The market price per share

at the time the RSUs were exercised was NOK 569.05. Correspond-

ingly, 118,075 RSUs were exercised in 2022. The market price per

share on the date these RSUs were exercised was NOK 338.73. The

value of the RSUs exercised is treated as a salary payment to the

individual employee .

Financial Statement and Results Notes to the Financial Statements for 2023

125

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.4 Share-based incentive scheme

Movements in the number of outstanding RSUs:
	2023	2022
1 January	297,503	234,954
Granted during the year	162,394	184,859
Released during the year	-87,990	-118,075
Forfeited	-6,231	-11,623
Performance adjustment	-53,278	0
Dividend adjustment	10,982	7,388
31 December	323,380	297,503

Calculation of the year's award was based on the following parameters :
	2023	2022
Grant date	19.12.2023	21.12.2022
Plan	2023	2022
Share price on date of issue	571.00	379.60
Weighted average fair values at the measurement date	556.89	288.99
Dividend yield ( %)	0 %	0 %
Expected volatility ( %)	38.73 %	44.76 %
Risk-free interest rate ( %)	3.76 %	3.07 %
Expected lifetime	1.92	1.92
Model used	Monte Carlo &	Monte Carlo &
	Black-Scholes	Black-Scholes

Vesting period for the outstanding RSUs at year end:
Date granted	Vesting period	2023	2022
17.12.2020	2020–23		42,117
20.12.2021	2021–23		35,495
20.12.2021	2021–24	35,992	35,537
21.12.2022	2022–23		61,397
21.12.2022	2022–24	62,455	61,435
21.12.2022	2022–25	62,539	61,522
19.12.2023	2023–24	54,071
19.12.2023	2023–25	54,125
19.12.2023	2023–26	54,198
Outstanding RSUs as at 31 December		323,380	297,503

Outstanding RSUs - group management:
	Outstanding			Performance	Dividend	Outstanding
	per 01.01	Granted	Released	adjustment	adjustment	per 31.12
Frode Arntsen, CEO	8,454	4,024	-2,022	-1,662	337	9,131
Ulrik Steinvik, CFO	5,300	2,311	-1,530	-975	206	5,312
Roger Bekken, COO Farming	6,427	2,865	-1,811	-1,194	254	6,541
Simon A. Søbstad, COO	4,074	1,941	-1,050	-782	155	4,338
Sales & Industry
Eva J. Haugen, Director	3,332	1,386	-1,009	-602	126	3,233
Quality Management/ HSE
Arthur Wisniewski, Director Human Resource	3,857	1,664	-1,060	-722	149	3,888
Management
Runar Sivertsen, Chief	3,606	1,664	-903	-698	137	3,806
Strategy Officer

Share option agreements - Icelandic Salmon AS:

On 19 February 2021, Icelandic Salmon AS granted 205,850 share options with an exercise price of

NOK 115.00, respectively, to CEO and key employees. The company's intention is that the options will

be equity-settled with shares in Icelandic Salmon AS. The option holders must stay in the employ-

ment of the group over a three year vesting period from the grant date until 19 February 2024. As at

31 December 2023 the fair value of the agreements was determined to be NOK 5.2 million. In 2023

a total amount of NOK 1.4 million was expensed as other employee benefits, with a corresponding entry

to other paid in equity.

Share option agreements - SalMar Aker Ocean AS:

On 21 December 2021, SalMar Aker Ocean AS entered into an option agreement with the company's CEO.

The agreement have a six year vesting period from the grant date. The fair value of the agreements was

determined to be NOK 7.3 million at grant date. In 2023 a total amount of NOK 1.2 million was expensed

as other employee benefits, with a corresponding entry to other paid in equity. The company's intention is

that the options will be equity-settled with shares in SalMar Aker Ocean AS, see further information below.

Financial Statement and Results Notes to the Financial Statements for 2023

126

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.5 Pensions plans

In 2022 SalMar Aker Ocean AS entered into a share option agreement

with key employees and granted 574,396 share options with an exer-

cise price of NOK 49.50. The program is based on given criteria, and

gives the employees the right to buy a certain number of shares at

a given price, and where the price is set equal to the value the company

was valued at when Aker Capital AS invested in the company in 2021.

The company's intention is that the options will be equity-settled with

shares in SalMar Aker Ocean AS, assuming a listing of the SalMar Aker

Ocean group before 31 December 2024. If the condition is not met, the

share options could be cash settled. The option holders must stay in the

employment of the group over the vesting period from the grant date

1 January 2022, alternatively from the startdate, until 31 December

2024. At grant date the fair value of the agreements was determined

to be NOK 9.8 million. In 2023 a total amount of NOK 1.3 million was

expensed as other employee benefits, with a corresponding entry to

other paid in equity.

NOTE 2.5 Pensions plans

Accounting policies

The Group has a defined-contribution pension scheme for its employ-

ees. The company pays contributions to a privately held insurance plan

and under this scheme, it has no further payment obligation once the

contributions have been paid. The contributions are recognised as

employee benefit expense when they are due. Social security costs

are charged based on the contribution paid .

SalMar has a defined contribution plan that is in accordance with the

legal requirements in Norway.

After the business combination with Norway Royal Salmon ASA (NRS)

in 2022, SalMar also has a defined benefit scheme which entitles

the 11 members of the scheme to defined future benefits. These

are mainly dependent on the number of years of entitlement, level

of salary upon reaching retirement age and the size of the pension

benefits paid by the National Insurance Scheme. The liability is funded

through an insurance company.

Specification of the pension cost for the Group:

NOK 1,000	2023	2022
Defined-contribution scheme	107,158	67,920
Defined-benefits plan (Early	30,008	23,682
Retirement Pension)
Defined-benefits plan	-8,617	883
Employers' national insurance contributions	9,148	6,188
Total pension cost	137,697	98,673
NOK 1,000	2023	2022
Prepaid pension contributions	2,985	2,802
Pension liabilities foreign operations	8,020	7,717
Pension liabilities defined benefits plan	0	10,161
Total pension liabilities in balance sheet	8,020	17,878

Liabilities associated with the Early Retirement Pension are not

included in the Group’s pension calculations. For accounting purposes,

the scheme is deemed to be a multi-employer occupational pension

plan. The Group is unable to identify its share of the scheme's underly-

ing financial position and results with sufficient reliability, and there-

fore recognises it as a defined-contribution scheme. This means that

liabilities in respect of the Early Retirement Pension are not provided

for. Contribution paid into the scheme are charged to expenses as

they accrue.

Financial Statement and Results Notes to the Financial Statements for 2023

127

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.6 Other operating expenses

Specification of the pension cost for the Group under the defined benefit scheme:

Members in the defined benefit scheme was in 2023 reduced due to the sale of the sales business

in former NRS. The employees related to this sales business left SalMar as a result of the sale, and no

compensation was paid to these employees. As a consequence of reduced members, there was recog-

nised a gain of NOK 9.5 million related to the settlement in 2023.

				01.11.2022–
NOK 1,000		2023		31.12.2022
Current service cost		722		715
Interest cost		56		59
Payroll tax		112		109
Administration cost		17		0
Net pension costs service – defined benefit scheme		907		883
Settlement/ curtailment		-9,524		0
Net pension costs service – defined benefit		-8,617		883
scheme net of settlement/ curtailment
Assumptions defined benefit scheme:		31.12.23		31.12.22
Discount rate		3.7 %		3.0 %
Future salary increases		3.8 %		3.5 %
Inflation rate		2.0 %		3.0 %
Future pension increase		2.4 %		1.5 %
Demographic factors:
Disability table		IR02		IR02
Mortality table	K2013	BE	K2013	BE
Number of employees in the scheme
Active		2		22
Pensioners		9		8
Total		11		30
Paid into the scheme during the period		1,105		0
Calculation of amount recognised in the balance sheet:
Present value of funded obligations		12,045		65,783
Fair value of plan assets		-12,489		-55,622
Net pension liabilities in balance sheet		-444		10,161

NOTE 2.6 Other operating expenses

Specification of other operating expenses (NOK 1,000)	2023	2022
Maintenance	555,820	304,810
Energy	480,797	329,902
Third-party services	161,548	142,978
Freight	1,838,027	1,668,036
Insurance	87,749	61,376
Travel cost	35,655	21,866
Other operating expenses	907,499	917,266
Total other operating expenses	4,067,095	3,446,233

Production tax

The production tax implemented on the Norwegian aquaculture activity with effect from 01 January

2021. The production tax on the Norwegian activity increased from NOK 0.56 per kg to NOK 0.90 per

kg with effect form 1 July 2023. For 2022 the production tax was NOK 0.405 pr kg.

With effect from 2020 production tax was implemented on Iceland. The production tax will increase

gradually over a seven-year period from 2020. According to a temporary provision of the law, the

amount of the fee was 4/7th of the calculated fee in 2023 and will be 5/7th in 2024. From 2026 the

fee charged will be full fee in accordance with the law.

Of the total cost of NOK 208.4 million in 2023, NOK 183.5 million is related to the activity in Norway

and NOK 24.9 million is related to the activity in Iceland. The corresponding numbers in 2022 were

a total production tax of NOK 85.2 million, whereof NOK 71.8 million was related to activity in Norway

and NOK 13.5 million to activity in Iceland.

To highlight the performance of underlying operations before deduction of the production tax, SalMar

has chosen to report it on a separate line in the income statement below Operational EBIT. To ensure

consistent treatment of the equivalent tax in Iceland, the resource tax in Iceland has been classified

similarly in the financial statement .

Financial Statement and Results Notes to the Financial Statements for 2023

128

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.7 Government grants

NOTE 2.7 Government grants

Accounting policies

Government grants relating to costs are deferred and recognised in profit or loss over the period

necessary to match them with the costs that they are intended to compensate. Government grants

relating to the purchase of capitalised operating assets reduce the carrying amount of the assets. The

grant is then recognised in profit or loss over the useful life of the depreciable asset by way of reduced

depreciation charge .

In 2023, Group companies recognised NOK 3.4 million in tax incentives under the SkatteFUNN scheme

and derecognised NOK 13.0 million in SkatteFUNN-related amounts in respect of capitalised operating

assets. (2022: NOK 6.3 million recognised in income, and derecognised NOK 11.9 million in Skatte-

FUNN-related amounts in respect of capitalised operating assets).

In addition to this, the group occasionally receives various grants, which are not of significant value.

NOTE 2.8 Audit fees

Breakdown of total auditor’s fee:

2023 (NOK 1,000)	EY	Others
Audit services	6,480	1,140
Other certification services	1,939	177
Tax advisory services	1,307	22
Other non-audit services	711	0
Total 2023	10,436	1,339
2022 (NOK 1,000)	EY	Others
Audit services	5,979	981
Other certification services	1,524	50
Tax advisory services	359	0
Other non-audit services	2,186	123
Total 2022	10,048	1,154

1 Some of the fees disclosed are inclusive of VAT .

NOTE 2.9 Fair value adjustments

Fair value adjustments are part of the Group's operating profit. Changes in fair value are presented on

a separate line to provide a better understanding of the Group's profit and loss with respect to goods sold.

NOK 1,000	2023	2022
Change in unrealised value of Fish Pool contracts	18,737	69,737
Change in the fair value of the biological assets	1,571,116	446,150
Fair value adjustment	1,589,853	515,887
Fair value adjustment included in cost of goods sold due to business combination	-722,809	-283,398
Total fair value adjustments	867,044	232,489

See Note 3.6 for details regarding change in fair value of biological assets and change in fair value

adjustment due to business combination. See Note 3.9 for details regarding change in fair value of

Fish Pool contracts .

Financial Statement and Results Notes to the Financial Statements for 2023

129

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.10 Net financial items

NOTE 2.10 Net financial items

Financial items (NOK 1,000)	2023	2022
Interest income	51,087	28,408
Change in fair value of derivatives	0	18,661
Dividends and gain on investment in other companies	26,640	0
Remeasurement of previously held equity interest	0	90,776
Other financial income	3,097	4,251
Total financial income	29,737	113,688
Interest expenses	1,223,249	364,247
Other exchange differences	10,231	18,637
Change in fair value of derivatives	6,990	0
Other financial expenses	42,963	1,771
Total financial expenses	60,183	20,408
Net financial items	-1,202,608	-242,558

Included in interest expense is an amount of total NOK 60.5 million that relates to income from interest

rate swap contracts. Corresponding income in 2022 was NOK 20.5 million.

Changes in fair value of derivatives through profit or loss relates to inefficiency in forward currency

contracts which do qualify for hedge accounting. For more details see note 3.9.

Remeasurement of previously held equity interest

With effect from 17 August 2022, the Group acquired 50 % of the shares in the smolt facility Isthor in

Iceland. Prior to the transaction SalMar Group owned 50 % of the shares in Isthor through SalMar's 51.02 %

ownership in Icelandic Salmon AS. Icelandic Salmon AS owns 100 % of the shares in Arnarlax Ehf, which

owns the shares in Isthor. The Group's holdings prior to the acquisition date, was remeasured at fair

value at the time control was obtained, and a gain of NOK 90.8 million was recognised as other financial

items in the profit or loss in 2022. See Note 4.5 for more information .

Financial Statement and Results Notes to the Financial Statements for 2023

130

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.11 Income tax, resource rent tax and production tax

NOTE 2.11 Income tax, resource rent tax and production tax

Accounting policies and general information

Income tax

Income taxes is comprised of taxes on the taxable profit for the year,

changes in deferred taxes and any adjustments in prior years' taxes.

Income tax relating to items recognised in the equity are recognised

directly in equity.

Tax payable is calculated using the nominal tax rate for the relevant

tax jurisdiction at the end of the reporting period.

Deferred tax is calculated on the basis of temporary differences

between accounting and taxation values at the close of the account-

ing year. Deferred tax assets arise from temporary differences that

give rise to future tax deductions. Deferred tax assets are recognised

to the extent that it is probable that a taxable profit will arise, against

which the deductible temporary differences, and the carry forward of

unused tax credits and unused tax losses, can be utilised.

Tax increasing and tax decreasing temporary differences are offset

against each other to the extent that the taxes can be net settled

within one tax regime.

Resource rent tax

On 31 May 2023, the Norwegian Parliament approved an additional

resource rent tax on aquaculture in Norway with a tax rate of 25 %

The resource rent tax is structured as a cash-flow-tax, and is related

to the aquaculture business in the sea phase. The resource rent tax is

in addition to the regular corporate tax on 22 %, gives a total tax rate

on aquaculture in sea phase of 47 %. The new tax applied retroactively

from 1 January 2023.

An implementation effect related to deferred resource rent tax on

biomass and the deductible consideration on historical acquisition of

production capacity has been recognised in the comprehensive income.

Production tax

The production tax implemented on the Norwegian aquaculture

activity with effect from 1 January 2021 is directly deductible in the

payable resource rent tax with effect from 1 January 2023. The total

resource rent tax related to the profit in the period is therefore the

total of production tax related to the Norwegian aquaculture activity

and resource rent tax calculated in the period. The production tax is

not classified as a tax expense in the statement of comprehensive

income, but are included on a separate line in the Operational EBIT.

See Note 2.6 for further information. The total effect of the resource

rent tax including production tax is shown below .

Financial Statement and Results Notes to the Financial Statements for 2023

131

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.11 Income tax, resource rent tax and production tax

Nominal tax rate in the consolidated statement of profit or loss:	Norway	Iceland
Income tax rate	22 %	20 %
Resource rent tax rate	25 %

With effect from 2024 the income tax on Iceland increases to 21 %. Deferred tax liability related to

temporary differences on Iceland at 31 December 2023 are calculated with a tax rate of 21 %.

Tax expense in the consolidated statement
of profit or loss (NOK 1,000)	2023	2022
Income tax payable	1,292,859	2,589,042
Income tax payable abroad	49,383	31,266
Income tax - change in deferred tax	279,386	-1,670,885
Resource rent tax payable	464,329	0
Resource rent tax- change in deferred tax	371,633	0
Resource rent tax -implementation effect (deferred tax)	2,079,987	0
Adjustment for tax of prior periods	-3,843	4,573
Tax expense in the consolidated statement of profit or loss	4,533,736	953,996

Tax payable in the balance sheet	2023	2022
Income tax payable - Norway *	1,311,451	2,589,049
Income tax payable - abroad	38,643	23,520
Resource rent tax payable	464,329	0
Tax payable in the balance sheet	1,814,423	2,612,569

* At 31 December 2022 the income tax payable in Norway was calculated to NOK 2,589 million. The

high calculated tax payable was due to the fact that no deduction was made for production costs

related to stock of live fish at 31 December 2022 related to legal entities subject to resource rent tax.

The background was unclear legislation related to the resource rent tax implemented with effect from

1 January 2023. At 31 December 2022 there was high degree of uncertainty whether production costs

on fish in the sea would be deductible in the resource rent tax in 2023. At the end of April 2023 the

authorities stated that no deduction will be granted in the resource rent tax for 2023 related to his-

torical cost on existing biomass at 31 December 2022. SalMar strongly disagrees with this conclusion.

However, the production cost was deducted in the income tax calculated in the final tax report for 2022

finalized in June 2023. As a consequence of this, the tax payable was reduced with NOK 1,999 million

with a corresponding increase in deferred tax liability.

Deferred income tax liability - comprise	2023	2022
Non-current assets	1,972,491	1,709,435
Inventory	2,696,076	390,133
Receivables	-5,576	-1,624
Derivatives	133,246	69,435
Provision onerous contracts	-75,211	-22,742
Other	-69,794	-43,919
Tax losses carried forward	-378,057	-172,914
Deferred income tax liability	4,273,176	1,927,804
Deferred resource tax liability - comprise:	2023	2022
Inventory	2,768,345	0
Other	-245,171	0
Tax losses carried forward	-71,554	0
Deferred resource tax liability	2,451,621	0
Total deferred tax liability	6,724,797	1,927,804

Financial Statement and Results Notes to the Financial Statements for 2023

132

Financial Statement and Results Notes to the Financial Statements for 2023 Note 2.11 Income tax, resource rent tax and production tax

Tax losses carried forward are mainly related to the companies in the subgroup SalMar Aker Ocean and

other Norwegian group companies not included in tax groups. The loss carry forward are expected to

be deducted from taxable income in the future. In assessing the recoverability of tax assets the Group

relies on the same forecast assumptions used elsewhere in the financial statements and in other

management reports.

NOK 1,000
Change in net deferred tax liability	2023	2022
Deferred tax liability at 1 January	1,927,804	2,258,689
Deferred tax liability associated with acquisitions	0	2,222,092
Deferred tax liability associated discontinued operations	0	-939,965
Change in deferred tax liability	279,386	-1,670,885
Deferred tax liability associated with equity transactions	-3,247	2,771
Deferred tax liability on items recognised in OCI	59,020	49,085
Deferred tax related to disposal of group companies	-2,007	0
Other changes in deferred tax liability	-5,095	0
Reclassification between tax payable and deferred tax liability *	1,998,631	0
Deferred resource tax - implementation effect	2,079,987	0
Change in deferred resource tax liability	371,633	0
Translation differences	18,685	6,017
Deferred tax liability at 31 December	6,724,797	1,927,804
* Regarding reclassification between tax payable and deferred tax liability in 2023, see information above.

Tax reconciliation	2023	2022
Profit before tax	7,279,321	4,562,032
Tax calculated at nominal Norwegian tax rate (22 %)	1,601,451	1,003,647
Foreign tax rate differences	-4,139	-10,888
Income from investments in associates and joint venture	6,005	-14,615
Net of other permanent differences	2,096	-28,720
Change in unrecognised deferred tax assets	16,216	0
Resource rent tax expense (25 %)	835,962	0
Resource rent tax - implementation effect (25 %)	2,079,987	0
Adjustment of income tax from previous years	-3,843	4,573
Calculated tax expense	4,533,736	953,996
Effective tax rate	62.3 %	20.9 %
Effective tax rate exclusive implementation effekt	33.7 %

Total resource rent tax including production tax in
the consolidated statement of profit or loss	2023	2022
Production tax recognised in the period	208,374	85,232
Production tax related to activity on Iceland	24,924	13,453
Production tax related to activity in Norway	183,450	71,779
Resource rent tax payable	464,329	0
Resource rent tax – change in deferred tax	371,633	0
Resource rent tax – implementation effect (deferred tax)	2,079,987	0
Total resource rent tax and production tax	3,099,400	71,779
related to the activity in Norway

Financial Statement and Results Notes to the Financial Statements for 2023

133

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.1 Intangible assets

Part 3 Assets and liabilities

NOTE 3.1 Intangible assets

Accounting policies

Intangible assets acquired separately are measured on initial recog-

nition at cost. The cost of intangible assets acquired in a business

combination is their fair value at the date of acquisition.

Intangible assets with a limited economic life are amortised over the

economic useful life. Impairments of intangible assets are recognised

in the extend of which the carrying amount of the asset exceeds its

recoverable amount.

Expenses related to research are expensed as they are incurred. Devel-

opment costs are capitalised when specific criteria relating to future

benefits are met. Capitalised development costs are recognised at

acquisition cost, less accumulated amortisation and write-downs. With

respect to major development projects, a specific assessment is made

to determine when the project has changed from being a development

project to a construction project. Capitalised development costs are

amortised in a straight line over the asset's estimated useful life.

Depreciation commences when the asset is put into operation .

Fish-farming licences

Licences acquired by the Group are capitalised at cost. Fish-farming

licences are deemed to have an indefinite useful life and are not

amortised, but are tested annually for impairment or more frequently if

there is indication of impairment, see Note 3.2 for further information.

Norway

Licences that the Group owns are capitalised at cost. Licences granted

in Norway are deemed to have an indefinite usable life and are there-

fore not amortised, but tested annually for impairment. The exception

is time-limited licences, which are depreciated over their remaining life.

Any value identified in connection with the acquisition of licences is

capitalised as an intangible asset.

Iceland

The sea farming licences in Iceland are issued, in accordance with the

current regulations, with a nominal lifespan of 16 years. The licences

will be renewed if the applicant meets the requirements set pursuant

to statute and regulation at the time the licence comes up for renewal.

A small fee must be paid for the licence renewal. This means that sea

farming licences are operated in a 16-year rolling lifespan system,

where the licences are renewed every 16th year. The Groups judgment

is that the fish-farming licences on Iceland, which are capitalized, will

not be amortised, but tested annually for impairment.

Goodwill

When the company assumes control over a separate business entity

for a consideration that exceeds the fair value of the individual assets

and liabilities assumed, the difference is entered as goodwill in the

statement of financial position. Goodwill deriving from purchases

of subsidiaries is presented under intangible assets. Goodwill is not

depreciated but is tested for impairment annually and when there are

indications that its value is lower than the carrying amount. When

assessing the need to write-down goodwill, this is assigned to relevant

cash flow generating units or groups, which are expected to benefit

from the acquisition. See Note 3.2 for further information.

Financial Statement and Results Notes to the Financial Statements for 2023

134

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.1 Intangible assets

			Other
			intangible
NOK 1,000	Licences	Goodwill	assets	TOTAL
Acquisition cost at 1 January 2023	14,903,657	3,023,585	519,960	18,447,202
Additions	288,223	0	50,941	339,163
Disposal	-2,500	0	0	-2,500
Currency translation differences	98,270	11,391	398	110,058
Acquisition cost at 31 December 2023	15,287,649	3,034,975	571,298	18,893,923
Accumulated depreciation & write- downs at 1 January 2023	28,137	23,725	104,286	156,149
Depreciation	42,824	0	10,353	53,177
Accumulated depreciation & write- downs at 31 December 2023	70,962	23,725	114,639	209,326
Carrying amount at 31 December 2023	15,216,687	3,011,250	456,660	18,684,597
Estimated lifetime	Indefinite/3–7.5 years	Indefinite	5–50 years
Depreciation method	Linear		Linear

The majority of other intangible assets totalling NOK 456.7 million are made up of capitalised devel-

opment costs. NOK 10.5 million of this is comprised of capitalised development costs relating to the

development of the Ocean Farm 1 installation. These costs are amortised over 5 years. A further total of

NOK 397.9 million relates to the development of the Group's Smart Fish Farm concept and Ocean Farm

2. This projects is still in the development phase and amortisation has not yet commenced. In addition,

other intangible assets includes excess value relating to the purchase of breeding nuclei. Breeding nuclei

are depreciated over 50 years, and their residual value as of 31 December 2023 was NOK 22.0 million.

Of the total carrying amount related to licences of NOK 15,217 million, NOK 212 million is related to

time-limited demonstration licences. The licences is amortised over the remaining life which various

from 3 years to 7.5 years.

			Other
			intangible
NOK 1,000	Licences	Goodwill	assets	TOTAL
Acquisition cost at 1 January 2022	7,508,421	775,788	380,778	8,664,987
Additions through business combinations	7,265,892	2,241,170	1,791	9,508,853
Additions	52,812	0	137,072	189,884
Currency translation differences	76,532	6,627	319	83,477
Acquisition cost at 31 December 2022	14,903,657	3,023,585	519,960	18,447,202
Accumulated depreciation & write- downs at 1 January 2022	21,000	23,725	89,791	134,517
Depreciation	7,137	0	14,495	21,633
Accumulated depreciation & write- downs at 31 December 2022	28,137	23,725	104,286	156,149
Carrying amount at 31 December 2022	14,875,519	2,999,859	415,674	18,291,052
Estimated lifetime	Indefinite/3–.5 years	Indefinite	5 –50 years
Depreciation method	Linear		Linear

Financial Statement and Results Notes to the Financial Statements for 2023

135

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.1 Intangible assets

Specification of fish farming licences 2023 (NOK 1,000)	MAB tonnes	Acquisition cost	Carrying amount 31.12.2023
Fish Farming Northern Norway	69,275	5,398,841	5,387,540
Fish Farming Central Norway	85,482	7,362,214	7,297,360
SalMar Aker Ocean	12,355	1,035,173	1,035,173
Norway	167,112	13,796,228	13,720,074
Icelandic Salmon	23,700	1,278,560	1,496,614
Group	190,812	15,074,788	15,216,687

Specification of fish farming licences 2022 (NOK 1,000)	MAB tonnes	Acquisition cost	Carrying amount 31.12.2022
Fish Farming Northern Norway	75,116	6,305,262	6,300,262
Fish Farming Central Norway	84,749	7,109,063	7,080,732
SalMar Aker Ocean	6,304	96,181	96,181
Norway	166,169	13,510,506	13,477,175
Icelandic Salmon	23,700	1,278,560	1,398,344
Group	189,869	14,789,065	14,875,519

Additional information

Icelandic Salmon holds licence of MAB 23,700 tonnes in the Icelandic

Westfjords. Of the total MAB, 10,000 tonnes must be renewed by the

end of 2026, 12,200 tonnes by the end of 2029 and 1,500 tonnes

by the end of 2038.

Included in the specification of fish farming licences above there

are 4 time-limited demonstration licences in Central Norway, and

2 time-limited demonstration licence in Northern Norway. In addi-

tion SalMar operates several R&D licences in collaboration with

other companies.

SalMar Group also holds 8 development licences with a total of MAB

6,240 tonnes. The licences is owned through the sub-group SalMar

Aker Ocean. The licences was granted in 2019 by the Norwegian

Directorate of Fisheries to develop the Smart Fish Farm, a specially

designed deepwater installation for the farming of fish in the open

ocean. No consideration has been paid for the 8 development licences.

2023 Change in fish farming licences (MAB tonnes)

In 2023, SalMar increased its production capacity through the

acquisition of Øylaks MTB AS. The fair value of the licences was

NOK 255.7 million. This led to a net increase in MAB of 733 tonnes

in Central Norway.

In addition SalMar acquired MAB of 210 tonnes in Northern Norway

through the governments auction of residual capacity with a total

amount of NOK 32.8 million.

In 2023 Arctic Offshore Farming AS was sold from SalMar ASA to the

85 per cent owned subsidiary SalMar Aker Ocean AS. Through the

transaction development licences with a total of MAB 6,051 tonnes

and a total carrying amount of MNOK 939.0 was moved from Fish

Farming Northern Norway to SalMar Aker Ocean. See Note 4.6 for

further information about the transaction.

The disposal in the period is related to the sale of the subsidiary

Salmonor Settefisk AS, and had no impact on the MAB.

2022 Change in fish farming licences (MAB tonnes)

In 2022, SalMar increased its production capacity through the acqui-

sitions of NTS and the merger with NRS. The fair value of licences

related to the transactions was NOK 7,262 million. This led to a net

increase in MAB of 19,635 tonnes in Central Norway and a net increase

in MAB of 30,814 tonnes in Northern Norway. In addition the acquisi

tion included 8 aquaculture development licences in Northern Norway

with MAB of 6,051 tonnes. The total MAB includes one time-lim-

ited demonstration licence in Central Norway and one time-limited

demonstration licence in Northern Norway. See Note 4.5 for further

information.

In addition SalMar acquired MAB 1,100 tonnes in development licences

in 2022. Total consideration for the licences was NOK 50 million.

Financial Statement and Results Notes to the Financial Statements for 2023

136

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.1 Intangible assets

Specification of goodwill 2023 (NOK 1,000)	Acquisition year	Acquisition cost	Carrying amount 31.12.2023
Fish Farming Northern Norway	2022	1,482,363	1,482,363
Fish Farming Central Norway	2022	602,850	602,850
Goodwill arising from the acquisition	2022	2,085,213	2,085,213
and merger of NTS and NRS
Fish Farming Northern Norway	2006	95,114	95,114
Fish Farming Central Norway	1999 –2021	680,674	656,949
Icelandic Salmon	2022	155,956	173,973
Total goodwill		3,016,957	3,011,250
Specification of goodwill 2022 (NOK 1,000)	Acquisition year	Acquisition cost	Carrying amount 31.12.2022
Fish Farming Northern Norway	2022	1,482,363	1,482,363
Fish Farming Central Norway	2022	602,850	602,850
Goodwill arising from the acquisition	2022	2,085,213	2,085,213
and merger of NTS and NRS
Fish Farming Northern Norway	2006	95,114	95,114
Fish Farming Central Norway	1999 –2021	680,674	656,949
Icelandic Salmon	2022	155,956	162,583
Total goodwill		3,016,957	2,999,859

The goodwill of NOK 2,085 million arising from the acquisition and merger of NTS and NRS in 2022,

comprises both the value of expected synergies arising from the acquisition which is not separately

recognised and technical goodwill. Due to fish farming licences having an indefinite useful life, SalMar

has assessed that the present value of the deferred tax related to the excess value identified for

licences being close to 0. Deferred tax related to excess value identified for licences amounts to a total

of NOK 789 million, which is recognised as technical goodwill. The deferred tax is computed with the

statutory tax in Norway of 22 %.

The goodwill of NOK 156 million allocated to segment Icelandic Salmon is arising from the acquisition

of Eldisstødin Isthor Ehf in 2022 .

Financial Statement and Results Notes to the Financial Statements for 2023

137

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.2 Impairment of non-financial assets

NOTE 3.2 Impairment of non-financial assets

Accounting policies

Annually or upon indication, each cash generating unit, is tested for impairment. If the recoverable amount

of a cash generating unit is estimated to be less than the carrying amount of the net assets of the cash

generating unit, impairment to the recoverable amount is recognised. The Group has substantial assets

with indefinite lives in the form of licences and goodwill. The licences are subject to impairment testing

in combination with goodwill in the annual test. Assets that are subject to amortization are reviewed

for impairment whenever there are indications that future earnings do not justify the carrying value.

SalMar has identified the Group's business segments as cash generating units. In connection with acqui

sitions, goodwill and intangible assets are allocated to each of the Group’s cash generating units that

are expected to benefit from the combination. The cash generating units are the lowest level in which

independent cash flows can be identified, and no higher than the Group's business segments based on

the geographic distribution of its sea farming operations in Norway, the segments Fish Farming Central

Norway and Fish Farming Northern Norway, Sales & Industry, Icelandic Salmon and SalMar Aker Ocean.

Impairment testing is carried out by calculating the net present value of estimated future cash flows (value

in use) for the cash-generating unit and comparing the net present value of the cash flow towards the

carrying amount of net assets held by the cash-generating unit. The cash flow used in the calculations

represents the management’s best estimate at the time of reporting. If the carrying amount is higher

than the calculated value in use, the assets are considered impaired. The estimated cash flow is based

on the assumption of continued operation. Value in use is calculated by estimating future cash flows,

based on approved budgets and forecasts. Cash flow growth after the last year in the calculation is

assumed to equal the expected rate of inflation. Cash flows are discounted by a rate of interest before

tax which takes account of relevant market risk. If the calculated value in use is less than the carrying

amount of the cash flow-generating entity, goodwill is impaired first and then other assets as required .

The groups analyses of climate risk have so far not identified climate-related matters with substantially

affect on the value of the groups assets or future cash flow. For further information see Note 4.9 .

Carrying amount of licences and goodwill allocated to cash generating units as at
31 December 2023:
NOK 1,000	Goodwill	Licences	Total 31.12.2023
Fish Farming Northern Norway	1,577,477	5,387,540	6,965,017
Fish Farming Central Norway	1,259,799	7,297,360	8,557,159
SalMar Aker Ocean	0	1,035,173	1,035,173
Icelandic Salmon	173,974	1,496,614	1,670,588
	3,011,250	15,216,687	18,227,938

Carrying amount of licences and goodwill allocated to cash generating units as at
31 December 2022:
NOK 1,000	Goodwill	Licences	Total 31.12.2022
Fish Farming Northern Norway	1,577,477	6,300,262	7,877,739
Fish Farming Central Norway	1,259,799	7,080,732	8,340,531
SalMar Aker Ocean	0	96,181	96,181
Icelandic Salmon	162,583	1,398,344	1,560,927
	2,999,859	14,875,519	17,875,378

At the end of the reporting periods, the market value of the Group’s equity was significantly higher

than the carrying amount of equity, which is an indication that the market considers the value of the

Group’s assets to exceed the carrying amount .

Financial Statement and Results Notes to the Financial Statements for 2023

138

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.2 Impairment of non-financial assets

Key assumptions

The key assumptions used in the calculation of value in use are har-

vested volume, EBIT/ kg, capital expenditure, tax, discount rates and

the terminal growth rates.

Discount rate

The discount rates are based on the Weighted Average Cost of Capital

(WACC) methodology. In the model a ten-year risk-free rate has been

used. Calculation of the final discount rates also takes into account

market risk premium, debt risk premium, gearing and beta value. In the

calculations, the Group has applied estimated cash flows after tax and

the corresponding discount rates after tax. The discount rate after tax

and before tax is calculated at 7.7 % and 7.9 % respectively for the

Group's Norwegian entities. For the operations in Iceland, the discount

rate after tax and before tax is 8.1 % and 10.2 % respectively. In the

sensitivity analysis the discount rate after tax is tested as it will yield

the same result as before tax.

Terminal growth rate

The growth rate is set at 2.5 % for Norway and 2.0 % for Iceland.

EBIT/ kg

EBIT margin per kg is highly volatile with respect to changes in salmon

prices. Forward prices are based on the Fish Pool Index at the reporting

day and estimates. Estimates for production cost are based on historic

figures and expectations.

Harvested volume

Harvested volume is based on the current stocking plans for each

unit, and forecasted figures for growth, assumed harvest weight and

mortality, based on historical figures.

Tax

A 22 % corporate tax has been used for Norwegian entities and 21 %

on Iceland. For Norwegian entities estimate of resource rent tax has

been added in the calculation. In addition current resource tax and

licence tax has been added for Iceland.

Climate Risk

As mentioned in note 4.9 SalMar has conducted a climate risk anal-

ysis of its assets. Based on current knowledge this is deemed to

be less sensitive compared to the other factors used in the impair-

ment evaluation.

Based on the above assessments, there were no impairment indica-

tors identified related to the fish farming licences or goodwill as of

31 December 2023. All segments have a material positive difference

between the calculated recoverable value and book value.

Sensitivity

In connection with the impairment testing of intangible assets, a sen-

sitivity analysis has been carried out. Sensitivity analysis has been

performed for each of the defined cash generating units.

Value in use is sensitive to changes in the assumptions made, the

most important of which are the discount rate and EBIT/kg. The table

below shows the extent of which the input factors must be changed

for the value in use to be equal to the carrying amount of net assets

held by the cash-generating unit.

	Discount rate
Cash generating units	after tax	EBIT/kg (NOK)
Fish Farming Northern Norway	+4.9 %	-14.3
Fish Farming Central Norway	+8.9 %	-17.8
Salmar Aker Ocean	+6.7 %	-15.3
Icelandic Salmon	+0.8 %	-2.1

Financial Statement and Results Notes to the Financial Statements for 2023

139

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.3 Property, plant and equipment

NOTE 3.3 Property, plant and equipment

Accounting policies

Property, plant and equipment (PPE) is measured at acquisition cost,

less a deduction for accumulated depreciation and write-downs.

Borrowing cost that are directly attributable to the construction

of a qualifying asset form part of the cost of the asset. Straight-

line depreciation is applied over the useful life of property, plant

and equipment, based on the asset’s historical cost and estimated

residual value at disposal. If a substantial part of an asset has an

individual and different useful life, this part is depreciated separately.

The asset’s residual value and useful life are evaluated annually. The

gain or loss arising from the disposal or retirement of an asset is

determined as the difference between the sales proceeds and the

carrying amount of the asset.

PPE under construction is not depreciated. Depreciation is charged to

expenses when the asset is ready for use .

Impairment tests for PPE are performed when there are indications

of impairment. If the recoverable amount is estimated to be less than

the carrying amount of the net asset, impairment to the recoverable

amount is recognised. The recoverable amount is the higher of net

sales value and value in use. Value in use is the present value of future

cash flows which the asset will generate .

				Other
	Land &	Machinery &	Boats &	operating	Assets under
NOK 1,000	buildings	equipment	barges	assets	construction	Total
Acquisition cost at 1 January 2023	4,769,724	5,924,366	2,332,729	318,589	1,941,887	15,287,295
Additions	211,890	887,838	389,660	63,551	715,871	2,268,811
Reclassification asset under construction	832,935	706,906	25,421	20,652	-1,585,914	0
Reclassification between categories	0	496,720	-457,932	-38,787	0	0
Reclassification RoU	32,066	5,319	232	0	0	37,618
Disposal group company	-38,034	-2,044	0	-1,329	0	-41,408
Disposals	-2,312	-48,720	-19,931	-10,961	0	-81,923
Currency translation differences	26,823	15,382	17,521	175	6,234	66,135
Acquisition cost at 31 December 2023	5,833,092	7,985,767	2,287,700	351,890	1,078,078	17,536,527
Accumulated depreciation & write- downs at 1 January 2023	402,407	2,683,855	880,049	189,447	317	4,156,075
Disposal group company	-28,052	-805	0	-104	0	-28,961
Depreciation	236,987	594,994	171,528	36,292	0	1,039,802
Write-downs	27	30,000	0	1,079	0	31,106
Disposal depreciation and write-downs	-850	-44,568	-15,448	-6,833	0	-67,699
Reclassification RoU	2,210	-4,630	15,057	0	0	12,636
Reclassification between categories	0	193,769	-179,784	-13,668	-317	0
Currency translation differences	2,451	5,606	14,011	131	0	22,198
Accumulated depreciation & write- downs at 31 December 2023	615,180	3,458,219	885,414	206,345	0	5,165,157
Carrying amount at 31 December 2023	5,217,912	4,527,548	1,402,286	145,545	1,078,078	12,371,370
Estimated lifetime	5 –33 years	5–25 years	3–15 years	3–20 years	N/A
Depreciation method	Linear	Linear	Linear	Linear	N/A
Gains/losses on the sale of PP&E	0	-86	0	-3,406	0	-3,492

Financial Statement and Results Notes to the Financial Statements for 2023

140

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.3 Property, plant and equipment

				Other
	Land &	Machinery &	Boats &	operating	Assets under
NOK 1,000	buildings	equipment	barges	assets	construction	Total
Acquisition cost at 1 January 2022	2,503,586	4,312,018	1,806,879	276,327	1,838,751	10,737,560
Additions through business combinations	1,482,389	421,005	546,186	23,801	106,099	2,579,479
Additions	139,765	624,599	100,593	9,453	1,390,598	2,265,008
Reclassification assets under construction	819,515	403,014	153,692	38,271	-1,414,492	0
Disposals	-139,611	-151,858	-30	-49,844	1,425	-339,919
Reclassification	-36,195	306,921	-299,077	16,529	11,822	0
Currency translation differences	276	8,668	24,488	4,052	7,684	45,167
Acquisition cost at 31 December 2022	4,769,724	5,924,366	2,332,729	318,589	1,941,887	15,287,295
Accumulated depreciation & write- downs at 1 January 2022	308,805	2,349,679	734,312	211,251	267	3,604,314
Depreciation	137,728	435,929	135,358	25,021	50	734,085
Write-downs	0	34,144	0	2,499	0	36,642
Disposal depreciation and write-downs	-45,802	-139,981	-30	-49,425	0	-235,238
Currency translation differences	1,677	4,083	10,409	102	0	16,272
Accumulated depreciation & write- downs at 31 December 2022	402,407	2,683,855	880,049	189,447	317	4,156,074
Carrying amount at 31 December 2022	4,367,316	3,240,512	1,452,681	129,142	1,941,570	11,131,221
Estimated lifetime	5 –33 years	5–25 years	3–15 years	3–20 years	N/A
Depreciation method	Linear	Linear	Linear	Linear	N/A
Gains/losses on the sale of PP&E	0	426	0	0	0	426

As of 31 December 2023, the company had capitalised a total of

NOK 1,078 million in connection with assets under construction.

The amount was divided into NOK 387.1 million on real estate,

NOK 461.9 million on plant and equipment, NOK 218.8 million on ves-

sels, and NOK10.3 million on other operating assets. As of 31 Decem-

ber 2022, the company had capitalised a total of NOK 1,942 million

in work on investment projects that had not been completed and put

into operation and for which depreciation had not commenced. Of this

was NOK NOK 835.3 million related to real estate, NOK 998.8 million to

plant and equipment, NOK 63.4 million to vessels and NOK 44.2 million

to other operating assets.

Write-downs in 2023 derive primarily from a NOK 30 million impairment

in the value of Salmosea plant and equipment. For 2022 there was

a NOK 36.6 million impairment in the value of the net relating to the

Ocean Farm 1 installation .

Financial Statement and Results Notes to the Financial Statements for 2023

141

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.4 Right-of-use assets and lease liabilities

NOTE 3.4 Right-of-use assets and lease liabilities

Accounting policies

The Group recognises right-of-use assets at the commencement

date of the lease. Right-of-use assets are measured at cost, less

any accumulated depreciation and impairment losses, and adjusted

for any remeasurement of lease liabilities. Right-of-use assets are

depreciated over the shorter of the lease term and the useful life of

the asset. When a purchase option has been included in the cost at

recognition, the right-of-use asset is depreciated over the estimated

useful life of the asset.

Short term leases (lease term less than 12 months) and leases of

low-value assets are not recognised as right-of-use assets and

lease liabilities, as the recognition exemptions for these leases is

applied. Lease payments of such leases are recognised as expense

over the lease term.

Contracts may contain both lease and non-lease components. The

group allocates the consideration in the contract to the lease and

non-lease components based on their relative stand-alone prices. This

applies to some of the groups lease arrangements of wellboats and

service boats, where crew and other service elements are included

in the contract. The cost related to service elements not defined as

lease, are expensed in the period they occur.

The lease liabilities at commencement date are measured at the pres-

ent value of the lease payments. The lease payments are discounted

using the Group's incremental borrowing rate as the interest rate

implicit in the lease is not readily determinable.

For leasing contracts with optional renewal period, and where we are

reasonably certain to exercise this option, the renewal periods are

included in the calculation of the lease liability and asset.

Right-of-use assets and lease liabilities includes offices and produc-

tion facilities, including the InnovaMar facility in Frøya. There are also

significant leasing agreements in place for wellboats, service boats,

plant and equipment.

Right-of-Use Assets

	Land &	Machinery &	Boats &
NOK 1,000	buildings	equipment	barges	Total
Acquisition cost at 1 January 2023	451,380	536,518	1,506,046	2,493,943
Adjustments of existing agreements	0	0	24,544	24,544
Additions	11,966	12,577	722,082	746,626
Disposal acquisition cost	-1,299	-3,108	-20,205	-24,611
Reclassification of acquisition cost to property, plant and equipment	-32,066	-5,319	-232	-37,618
Currency translation differences	0	3,557	2,776	6,332
Acquisition cost at 31 December 2023	429,981	544,224	2,235,010	3,209,216
Accumulated depreciation & write-downs at 1 January 2023	158,250	257,019	692,070	1,107,339
Depreciation	29,593	57,989	238,598	326,180
Write-down	0	1,965	0	1,965
Disposal accumulated depreciation	0	-774	-12,470	-13,244
Reclassification of depreciation to property, plant and equipment	-2,210	4,630	-15,057	-12,636
Currency translation differences	0	850	1,061	1,911
Accumulated depreciation & write-downs at 31 December 2023	185,633	321,680	904,202	1,411,515
Carrying amount at 31 December 2023	244,348	222,544	1,330,808	1,797,701
Estimated lifetime	2 - 30 years	1 - 5 years	1 - 9 years
Depreciation method	Linear	Linear	Linea r

Financial Statement and Results Notes to the Financial Statements for 2023

142

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.4 Right-of-use assets and lease liabilities

	Land &	Machinery &
NOK 1,000	buildings	equipment	Boats & barges	Total
Acquisition cost at 1 January 2022	380,201	390,392	977,027	1,747,619
Additions through business combinations	22,410	85,479	439,016	546,905
Adjustments of existing agreements	-1,573	0	54,644	53,071
Additions	50,343	62,228	29,725	142,296
Disposal acquisition cost	0	-1,582	-5,719	-7,300
Currency translation differences	0	0	11,352	11,352
Acquisition cost at 31 December 2022	451,380	536,518	1,506,046	2,493,943
Accumulated depreciation & write-downs at 1 January 2022	132,846	213,584	524,385	870,816
Depreciation	27,210	45,016	173,109	245,335
Disposal accumulated depreciation	0	-1,582	-427	-2,009
Currency translation differences	-1,806	0	-4,997	-6,803
Accumulated depreciation & write-downs at 31 December 2022	158,250	257,019	692,070	1,107,339
Carrying amount at 31 December 2022	293,130	279,499	813,975	1,386,604
Estimated lifetime	2 - 30 years	1 - 5 years	1 - 9 years
Depreciation method	Linear	Linear	Linear

Other leasing costs recognised in profit and loss (NOK 1,000)	2023	2022
Costs relating to short-term leases (less than 12 months duration)	263,323	125,413
Costs relating to the lease of low-value assets	51,802	32,993
Total leasing costs included in other operating expenses	315,125	158,405

Leases of low value are recognised in other operating expenses. Costs relating to short-term leases mainly relates to ad hoc leasing of service boats .

Financial Statement and Results Notes to the Financial Statements for 2023

143

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.4 Right-of-use assets and lease liabilities

Lease liabilities

NOK 1,000	2023	2022
Lease liability 1 January	1,425,297	967,166
Additions through business combinations	0	483,609
Adjustment of lease liabilities	24,544	54,429
New contracts	746,626	145,708
Interest on lease liability (profit and loss)	102,177	64,654
Instalments on lease liabilities paid (cash flow)	-321,096	-229,333
Interest on lease liabilities paid (cash flow)	-102,177	-64,654
Disposal and reclassification of lease liabilities	-32,372	0
Currency translation differences	2,496	3,718
Total lease liabilities at 31 December	1,845,494	1,425,297
Short-term lease liabilities	343,753	273,081
Long-term lease liabilities	1,501,741	1,152,216
Total lease liabilities at 31 December	1,845,494	1,425,297

Cash flow relating to lease liabilities

NOK 1,000	2023	2022
Instalments on lease liabilities paid (cash flow)	321,096	229,333
Interest on lease liabilities paid (cash flow)	102,177	64,654
Lease liabilities recognised in profit or loss	315,125	158,405
Total cash flow relating to lease liabilities	738,398	452,392

See Note 4.1 for further details of the lease liabilities' maturity profile .

Financial Statement and Results Notes to the Financial Statements for 2023

144

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.5 Investments in associated companies and joint ventures

NOTE 3.5 Investments in associated companies and joint ventures

Accounting policies

Joint ventures are entities where the group has joint control and the parties in the joint arrangement

have right to the net assets of the arrangement. Associates are all entities, except joint ventures, over

which the group has significant influence but not control. This is generally the case where the group

holds between 20 % and 50 % of the voting rights. Investments in associates and joint ventures are

accounted for using the equity method of accounting, after initially being recognised at cost.

Where the group’s share of losses in an equity-accounted investment equals or exceeds its interest in

the entity, including any other unsecured long-term receivables, the group does not recognise further

losses, unless it has incurred obligations or made payments on behalf of the other entity.

The carrying amount of equity-accounted investments is tested for impairment in accordance with

principles described in Note 3.2 .

Investments in joint ventures and associated companies at 31 December 2023:

			Ownership	Ownership
Company	Head office	Sector	01.01	31.12
Norskott Havbruk AS	Bergen	Fish farming	50.00 %	50.00 %
SalMar Genetics AS	Rauma	Genetics	50.00 %	50.00 %
Kirkenes Processing AS	Kirkenes	Harvesting	50.00 %	50.00 %
Romsdal Processing AS	Molde	Harvesting & processing	44.45 %	44.45 %
Yu Fish Ltd	Singapore	Sales	45.30 %	45.30 %
Wilsgård Fiskeoppdrett AS	Torsken	Fish farming	37.50 %	37.50 %
Hellesund Fiskeoppdrett AS	Høvåg	Fish farming	33.47 %	33.47 %
Nordnorsk Smolt AS	Hasvik	Fish farming	50.00 %	50.00 %
Sikkerhetssenteret Rørvik AS	Rørvik	Education	21.26 %	21.26 %
Flatanger Settefisk AS	Flatanger	Smolt production	41.00 %	41.00 %
Oppdretternes Miljøservice AS	Rørvik	Aquaculture services	25.00 %	25.00 %
Skamik AS	Ottersøy	Aquaculture services	24.88 %	24.88 %

All associates and joint ventures are accounted for using the equity method. Since none of the

Group's associates or joint ventures are listed on a stock exchange, no observable market values

are available .

Financial Statement and Results Notes to the Financial Statements for 2023

145

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.5 Investments in associated companies and joint ventures

Companies recognised in accordance with the equity method

	Wilsgård	Hellesund
	Fiskeoppdrett	Fiskeoppdrett	Norskott
NOK 1,000	AS	AS	Havbruk AS	Others	TOTAL
Opening balance at 1 January 2023	572,330	433,407	1,152,989	213,024	2,371,747
- goodwill	0	0	0	3,605	3,605
Income from associated companies and joint ventures	80,449	40,209	-167,703	19,750	-27,295
Items recognised in other comprehensive income	0	0	90,809	2,215	93,024
Dividend received	0	-10,060	0	-8,386	-18,446
Other changes	-1,445	0	0	116	-1,329
Carrying amount at 31 December 2023	651,335	463,555	1,076,095	226,718	2,417,700
	Wilsgård	Hellesund
	Fiskeoppdrett	Fiskeoppdrett	Norskott
NOK 1,000	AS	AS	Havbruk AS	Others	TOTAL
Opening balance at 1 January 2022	0	0	1,094,686	79,745	1,174,428
- excess value not amortised	0	0	0	327	327
- goodwill	0	0	0	3,051	3,051
Addition recognised through business acquisition	559,000	420,000	0	145,161	1,124,161
- addition of excess value not amortised	302,898	220,471	0	0	0
Remeasurement of equity interest at fair value	0	0	0	90,776	90,776
Derecognition due to reclassification to subsidiary	0	0	0	-105,632	-105,632
Income from associated companies	13,330	7,551	41,492	4,058	66,432
Items recognised in other comprehensive income	0	0	16,811	4,632	21,444
Dividend received	0	0	0	-2,865	-2,865
Other changes	0	5,855	0	-2,853	3,002
Carrying amount at 31 December 2022	572,330	433,407	1,152,989	213,024	2,371,747

In 2022 the Group acquired 50 % of the shares in the smolt facil-

ity Isthor in Iceland and the company was consolidated in the

Group's financial statements. The recognition according to equity

method was from the same time ended, with a remeasurement of

already held equity interest at fair value at acquisition. See Note 4.5

for further information.

Furthermore, with effect from 01.11.2022, a number of associates

were added to the Group in the acquisition and merger of NTS and

NRS, of which Wilsg

pdrett AS are considered material associates. Excess value in the

two material associates mainly relates to licences. See Note 4.5 for

further information .

Financial Statement and Results Notes to the Financial Statements for 2023

146

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.5 Investments in associated companies and joint ventures

Material associates and joint ventures

Based on an overall assessment, in which size and complexity have

been taken into account, Norskott Havbruk AS, Wilsgård Fiskeop-

pdrett AS and Hellesund Fiskeoppdrett AS are considered to be mate-

rial associates and joint ventures. Further details relating to these

material assets are presented below.

Wilsgård Fiskeoppdrett AS

Located in Senja, Wilsgård Fiskeoppdrett AS is a fishfarming company

with 6 ordinary licences. SalMar ASA owns 37.5 % of the shares in

the company.

Hellesund Fiskeoppdrett AS

SalMar ASA has a ownership share of 33.5 % in Hellesund Fiskeop-

pdrett AS. The company has one licence in Lillesand kommune in

the southern part of Norway. In addition it owns 75 % of the shares

in Korshavn Havbruk AS, a fishfarming company with one licence

in Lyngdal, and 100 % of the shares of Sørvest Laks AS, with one

licence in Lillesand.

Norskott Havbruk AS

Located in Bergen, Norskott Havbruk AS is a holding company that

owns 100 % of Scottish Sea Farms Ltd, which has operations in

mainland Scotland and Shetland.

Norskott Havbruk is 50/50 owned by SalMar ASA and Lerøy Sea-

food AS. The board of directors has 4 members, with each shareholder

represented by 2 directors. The shareholders alternate in having the

board's chair. SalMar and Lerøy are consider to have joint control over

the investment and are classified a joint venture.

The following table shows a summary of financial information relating to material associates, based on 100 % figures:

		Wilsgård Fiskeoppdrett AS		Hellesund Fiskeoppdrett AS
		01.11.2022–		01.11.2022–
NOK 1,000	2023	31.12.2022	2023	31.12.2022
Operating revenues	733,342	159,674	264,976	64,493
Operating expenses	542,734	88,207	125,033	29,068
Fair value adjustments	50,181	-29,594	-6,513	-912
Net profit/loss	214,531	36,831	120,146	83,430
Non-current assets	351,332	391,583	70,941	77,872
Current assets	940,280	679,020	734,070	660,405
Non-current liabilities	192,795	224,556	5,117	50,770
Current liabilities	215,539	173,446	62,693	40,806
Equity	883,278	672,601	737,201	615,305
The Group's share of equity	331,229	252,225	246,741	205,942
Excess value	302,898	302,898	220,471	220,471
Carrying amount at 31 December	651,335	572,330	463,555	433,407

The following table shows a summary of financial information relating to material joint ventures, based on 100 % figures:

	Norskott Havbruk AS
NOK 1,000	2023	2022
Operating revenues	2,561,466	3,187,853
Operating expenses	2,865,278	2,914,267
Fair value adjustments	16,337	-28,582
Net profit/loss	-335,406	82,984
Non-current assets	3,591,919	3,403,086
Current assets	2,539,809	1,904,111
Non-current liabilities	2,396,226	2,080,868
Current liabilities	1,583,312	920,249
Equity	2,152,190	2,306,080
The Group's share of equity	1,076,095	1,153,040
Carrying amount at 31 December	1,076,095	1,152,989

Financial Statement and Results Notes to the Financial Statements for 2023

147

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.6 Biological assets and other inventories

NOTE 3.6 Biological assets and other inventories

Accounting policies

Inventory and biological assets

Live fish are recognised at fair value less sales costs.

Other inventory is comprised of feed, packaging materials, roe, fry,

smolt, cleaner fish and finished goods. Inventories of goods are meas-

ured at the lowest of cost and net realisable value.

The cost of finished goods includes direct material costs, direct per-

sonnel expenses and indirect processing costs (full production cost).

Interest costs are not included in the inventory value.

The cost is based on the principle of first-in first-out.

Biological assets

Live fish are accounted for in accordance with IAS 41 Agriculture. The

general rule is that such assets are measured at fair value less sales

costs. Fair value is measured in accordance with IFRS 13 within level

3, based on factors not drawn from observable markets. Changes in

value are recognised and classified under fair value adjustments in

Consolidated statement of profit and loss.

Roe, fry, smolt and cleaner fish are valued at historic cost. Historic cost

is deemed to be the best estimate of fair value for these assets, due

to little biological conversion.

The fair value of biological assets held at the Group's sea farms is

calculated using a model based on future cash flow. The present

value is calculated on the basis of estimated revenues, less estimated

remaining production costs until the fish is harvestable at the individual

site. A fish is harvestable when it has reached the estimated weight

required for harvesting specified in the company's budgets and plans.

The estimated value is discounted to present value on the reporting

date. Present value is estimated for the biomass at each site.

Incoming cash flows are calculated as the estimated biomass at har-

vest multiplied by the price expected to be achieved at the same time.

The estimated biomass (volume) at harvest is calculated on the basis

of the number of individual fish held at sea farms on the reporting

date, adjusted for expected mortality until harvest and multiplied by

the estimated weight of the fish at harvest.

The price is calculated using the Fish Pool forward price for the esti-

mated harvesting date that was in effect on the reporting date.

Forward prices are adjusted for an exporter supplement, as well as

harvesting, sales and well-boat costs. In addition, an adjustment is

made to take account of expected differences in fish quality. The

price is also reduced by production tax. Se further information in

note 2.6. The price adjustments are made at the site level. In the

absence of price quotations on Fishpool, forward prices for 2025

have been calculated on the basis of price expectations obtained

from industry analysts.

Estimated remaining production costs are estimated costs that

a rational person would presume necessary for the farming of fish

up until they reach a harvestable weight. In the model, instead of being

a separate cost element in the calculation, compensation for licence

fees and site rent are included in the discount factor, and thereby

reduces the fair value of the biomass.

The fair value of the biomass is calculated using a monthly discounting

of the cash flow based on the harvest plan. The discount factor is

intended to reflect three main components:

1. Risk of incidents that affect cash flow

2. Hypothetical licence fees and site rental cost

3. Time value of money

The discount factor is set on the basis of an average for all the

Group's sites, which, in the Group's assessment, provides a sensible

growth curve for the fish - from smolt to harvestable size.

The risk adjustment must take into account the biological risks of

farming, including the average time in sea for the fish. The number

of months left until harvesting will affect the risk. Biological risk,

the risk of increased costs and price risk will be the most important

elements to be recognised. The present value model includes a the-

oretical compensation for licence fees and site rent as an addition to

the discount factor in the model, instead of being a cost-increasing

factor in the calculation.

A discount rate of 6.5 % per month has been used to calculate the

fair value of biological assets for the Group's Norwegian operations.

Correspondingly, a discount rate of 6 % per month was used in 2022.

For the Group's operations in Iceland, a discount rate of 5 % per month

was used both in 2023 and 2022. The discount rate reflects the

biomass's capital cost, risk and synthetic licence fees and site rental

charges. Change in margins as a result of changes in prices or cost,

will cause a change in the synthetic licence fee and the discount rate.

The increase in the discount rate in 2023 for the Norwegian oper-

ation is based on higher forward prices and thereby an expectation

of higher margins .

Financial Statement and Results Notes to the Financial Statements for 2023

148

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.6 Biological assets and other inventories

Fair Value due to business combinations

Due to business combinations, assets and liabilities are taken over at fair value. Fair value adjustment

on biological assets at the time of acquisition are included in the cost of biological assets. In order

to give the users of the financial statement an better understanding of the Group’s profit and loss

related to goods sold in the period, the effect of fair value adjustment from the acquisition related to

sold fish in the period have reduced the cost of goods sold. The effect is shown in a separate line in

the statement of profit or loss, and the corresponding effect is presented on a separate line together

with fair value adjustments. Change in fair value adjustment due to business combination is included

in the group's operating profit.

Incident-based mortality

In the event of incidents exceeding 3 % mortality in a period based on a single incident, or if the mortality

exceeds 5 % over several periods based on one and the same incident, an assessment is made as to

whether there is a basis for write-down. The assessment relates to the number of fish and is carried

out at site level. Incident-based mortality is recognised under cost of goods sold in the Consolidated

Statement of Profit or Loss .

Carrying amount of inventory

NOK 1,000	31.12.2023	31.12.2022
Raw materials	433,528	426,741
Finished goods	796,125	503,136
Total carrying amount of other inventory	1,229,653	929,877
Biological assets	13,264,679	11,754,721
Total carrying amount of inventory	14,494,332	12,684,598

Carrying amount of biological assets

NOK 1,000	31.12.2023	31.12.2022
Biological assets held at sea farms at cost	7,887,537	7,295,443
Fair value adjustment of biological assets	4,760,821	3,908,118
Total carrying amount of biological assets held at sea farms	12,648,358	11,203,560
Roe, fry, smolt and cleaner fish at cost	616,320	551,160
Total carrying amount of biological assets	13,264,679	11,754,721

Raw materials mainly comprise feed for smolt and fish at sea farms. In addition, raw materials are used

in connection with processing and packaging. Stocks of biological assets relate to SalMars fish farming

operations both in freshwater and seawater, and comprise roe, fry, smolt, cleaner fish and fish at sea

farms. Finished goods comprise whole fish (fresh and frozen), as well as processed salmon products.

			Carrying amount
	Tonnes		(NOK 1,000)
Change in biological assets:	2023	2022	2023	2022
Biological assets at 1 January	161,542	124,884	11,754,721	7,280,917
Increase from business combination	0	42,423	0	3,254,063
Increase due to production	299,922	220,811	13,863,422	8,647,629
Decrease due to sale/ harvesting	-296,094	-225,586	-13,006,570	-7,575,881
Decrease due to incident-based mortality	-3,528	-991	-251,089	-62,061
Decrease due to sale of group companies			-8,612	0
Fair value adjustment at 01.01			-3,908,118	-2,645,574
Fair value adjustment from business combination due to fish			813,222	0
not sold on opening balance
Fair value adjustment from business combination due to fish			-90,413	-813,222
not sold on closing balance
Fair value adjustment from business
combination included in cost of goods sold in the period			-722,809	-283,398
Fair value adjustment at 31.12			4,760,821	3,908,118
Currency translation differences			60,103	44,131
Biological assets at 31 December	161,841	161,542	13,264,679	11,754,721

Financial Statement and Results Notes to the Financial Statements for 2023

149

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.6 Biological assets and other inventories

The calculation is based on following estimated forward prices:

Expected		Expected
harvesting period	31.12.2023	harvesting period	31.12.2022
Q1–2024	107.95	Q1–2023	91.75
Q2–2024	113.45	Q2–2023	95.55
Q3–2024	83.70	Q3–2023	76.48
Q4–2024	86.12	Q4–2023	78.22
1st half 2025	101.11	1st half 2024	85.91
2nd half 2025	74.60	2nd half 2024	75.00

Sensitivity:

The change in the estimated fair value of biological assets has been calculated by changing individual

parameters in the calculation. The effect on the carrying amount of biological assets is summarised below.

		Effect on estimated		Effect on estimated
		fair value at		fair value at
2023 (NOK 1,000)	Increase	31.12.2023	Decrease	31.12.2023
Change in forward price	+ NOK 5.00	796,399	NOK 5.00	-796,399
	per kg		per kg
Change in monthly	1 %	-748,613	-1 %	831,296
discount factor
Change in harvesting date	1 month	1,123,469	1 month	-817,731
	earlier		later
Change in number of fish held at sea farms	1 %	144,607	-1 %	-144,607

		Effect on estimated		Effect on estimated
		fair value at		fair value at
2022 (NOK 1,000)	Increase	31.12.2022	Decrease	31.12.2022
Change in forward price	+ NOK 5.00	901,185	NOK 5.00	-901,185
	per kg		per kg
Change in monthly	1 %	-695,372	-1 %	772,027
discount factor
Change in harvesting date	1 month	855,123	1 month	-679,186
	earlier		later
Change in number of fish held at sea farms	1 %	47,854	-1 %	-47,854

Financial Statement and Results Notes to the Financial Statements for 2023

150

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.7 Trade and other receivables

NOTE 3.7 Trade and other receivables

Accounting principles

The Group's receivables are recognised at amortised cost. Receivables in foreign currency are

converted at the exchange rate at the time of the transaction. Due to the short-term nature of the

current receivables, their carrying amount is considered to be the same as their fair value.

The group uses a simplified method to calculate provisions for losses on trade receivables. The group

uses credit insurance to secure its accounts receivable and makes provisions for expected losses

on the excess that is not covered by the insurance. The group measures the provision for bad debts

based on the expected credit loss over the remaining lifetime of the exposure, and not based on an

expected loss of 12 months .

NOK 1,000	31.12.2023	31.12.2022
Trade receivables	1,468,617	1,429,071
Allowance for credit losses	-11,654	-14,936
Total trade receivables at 31 December	1,456,963	1,414,135
Other current receivables	1,061,256	662,978
Other non-current receivables	241,634	328,876
Total receivables at 31 December	2,759,853	2,405,989

Prepaid expenses included in other current receivables 113,233 89,681

VAT refunds included in other current receivables 13 225,680

Derivatives included in other current receivables 469,162 99,082

Derivatives included in other non-current receivables 158,522 247,802

Credit losses are classified as other operating expenses in profit and loss. Changes in allowance for credit

losses and credit losses charged to expenses during the period are presented below.

For further information related to credit risk and foreign exchange risk, see Note 4.1.

NOK 1,000	31.12.2023	31.12.2022
Provisions for bad debt 1 Jan	14,936	8,946
Provisions for bad debts 31 Dec	11,654	14,936
Change in provisions for bad debts during the period	-3,282	5,990
Actual bad debts	9,694	2,451
Change in provisions for bad debts	-3,282	5,990
Bad debts charged to expenses during the period	6,411	8,440
Trade receivables had the following maturity profile

NOK 1,000 Not due <30 d 30–45d 45–90d >90d Total

31.12.2023 1,161,096 172,013 44,684 2,762 88,062 1,468,617

31.12.2022 1,016,521 330,067 18,167 8,493 55,822 1,429,071

Receivable Purchase Agreement

SalMar has entered into an agreement with a credit institution for the purchase of trade receivables

that meet certain specified criteria. SalMar transfers trade receivables that meet these criteria as

and when they arise and receives immediate settlement thereof. Normal maturity of trade receiva-

bles is 30–45 days. The material part of the credit risk is transferred when the trade receivables is

transferred to the credit institution. The receivables are derecognised in the balance on the date the

transfer takes place. As at 31 December 2023, a total of NOK 1,299.9 million in outstanding receiva-

bles has been transferred and derecognised (31 December 2022, a total of NOK 1,103.8 million). The

change in trade receivables deriving from this derecognition is included under operating activities in

the statement of cash flow.

Financial Statement and Results Notes to the Financial Statements for 2023

151

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.8 Financial assets and financial liabilities

NOTE 3.8 Financial assets and financial liabilities

Accounting policies

A financial instrument is any contract that gives rise to a financial

asset of one entity and a financial liability or equity instrument of

another entity.

Financial assets

The Group's financial assets is comprised of derivatives, unlisted

equity investments, other receivables, and cash & cash equivalents.

The classification of financial assets at initial recognition depends on

the nature of the asset's contractually determined cash flows, and

which business model the Group applies to the management of its

financial assets. At initial recognition, financial assets are recognised

at fair value. Transaction costs may be added if financial assets are

measured at amortised cost.

The Group classifies its financial assets in three categories:

• Financial assets measured at amortised cost

• Financial assets measured at fair value with changes in

value through profit and loss

• Financial assets measured at fair value in other

comprehensive income (OCI)

Financial assets measured at amortised cost

The Group measures financial assets at amortised cost if the following

conditions are met: The financial asset is being kept in a business

model whose purpose is to receive contractually determined cash

flows, and the contractual terms and conditions for the financial

asset give rise to cash flows solely comprising payments of interest

and principal on certain dates.

The Group's financial assets at amortised cost comprise trade receiv-

ables, other receivables, cash & cash equivalents. Trade receivables

which do not have a substantial financing element are measured

at the transaction price in accordance with IFRS 15 Revenue from

Contracts with Customers.

Financial instruments measured at fair value with changes in value

through profit and loss

The Group makes use of forward currency contracts to hedge against

fluctuations in exchange rates that arise during its operational activ-

ities. The contracts are initially recognised at fair value. Changes in

fair value related to contracts that don't qualify for hedge accounting

are recognised in profit and loss.

The Group enters into contracts on Fish Pool to manage the salmon

price risk. Fish Pool contracts are also used to hedge margins in certain

cases relating to salmon purchase agreements. The derivatives are

recognised at fair value at the date of acquisition. Any subsequent

changes in value are classified on the line for fair value adjustments

in profit and loss.

This category also includes the Group's unlisted equity instrument

and other receivables. These instruments are recognised at fair value

on the date the contract is entered into and subsequently measured

at fair value.

Financial instruments measured at fair value in other

comprehensive income (OCI)

The Group uses derivatives to hedge against fluctuations in foreign

exchange rates that arise during its operational activities. When for-

ward currency contracts meet the requirements for hedge accounting,

changes in fair value are recognised in OCI.

The Group has entered into a cross-currency interest swap and inter-

est rate swaps to hedge risk related to interest-bearing debt and the

operations on Iceland. Changes in fair value in these derivatives are

recognised in OCI.

Derecognition of financial assets

A financial asset or, if relevant, a portion of a financial asset or portion

of a group of identical financial assets, is derecognised if:

• The contractual entitlement to receive cash flows from the

financial asset expires, or

• The Group has transferred the contractual entitlement

to receive cash flows from the financial asset or retains

the right to receive the cash flows from a financial

asset but at the same time pledges to transfer these to

a counterparty, and either:

a. The Group has transferred the bulk of the risk and

benefits associated with the asset, or

a. The Group has neither transferred nor retained the bulk

of the risk and benefits associated with the asset but

has transferred control over the asset .

Provisions for losses on financial assets

The Group has made a provision for expected losses on all debt instru-

ments that are not classified at fair value through profit and loss.

The Group recognises expected credit losses based on a specific

assessment of each individual customer. The Group recognises its

loss provision based on expected credit losses over the remaining life

of the exposure, and not the 12-month expected loss .

Financial Statement and Results Notes to the Financial Statements for 2023

152

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.8 Financial assets and financial liabilities

Financial liabilities

Financial liabilities are, after initial recognition, classified as loans and liabilities, or derivatives designated

as hedging instruments in an effective hedging arrangement. Derivatives are initially recognised at fair

value. Loans and liabilities are recognised at fair value adjusted for directly attributable transaction

costs. Derivatives are financial liabilities when the effective interest method fair value is negative, and

are treated for accounting purposes in the same way as derivatives that are assets.

Loans and liabilities

After initial recognition, interest-bearing loans will be measured at amortised cost. Gains and losses are

recognised in profit and loss when the liability is derecognised. After initial recognition, interest-bearing

loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through

the effective interest method amortisation process. Amortised cost is calculated by recognising any

discount or premium on acquisition and fees or costs that are an integral part of the effective interest

method. The effective interest method amortisation is included as finance cost in the statement of

profit or loss. See Note 3.11 for further details .

Financial instruments at 31 December 2022
		At fair value
	At amortised	through	At fair value
NOK 1,000	cost	profit & loss	in OCI	TOTAL
Assets
Derivatives
Forward currency contracts	0	-3,028	69,105	66,076
Interest and currency rate swaps	0	0	247,802	247,802
Financial contracts Fish Pool	0	33,006	0	33,006
Equity instruments
Unlisted equity instruments	0	42,434	0	42,434
Debt instruments
Other non-current receivables	81,074	0	0	81,074
Trade receivables	1,414,135	0	0	1,414,135
Other current receivables	544,728	10,561	0	555,289
Cash and cash equivalents	2,712,707	0	0	2,712,707
Total financial assets	4,752,644	82,973	316,907	5,152,524
Liabilities
Interest-bearing debt
Debts to credit institutions	18,324,946	0	0	18,324,946
Green bond	3,467,147	0	0	3,467,147
Derivatives
Financial contracts Fish Pool	0	26,924	0	26,924
Other financial liabilities
Trade payables	3,337,649	0	0	3,337,649
Total financial liabilities	25,129,742	26,924	0	25,156,666

Financial instruments by category

Financial instruments at 31 December 2023
	At	At fair value
	amortised	through	At fair value
NOK 1,000	cost	profit & loss	in OCI	TOTAL
Assets
Derivatives
Forward currency contracts	0	0	444,343	444,343
Interest and currency rate swaps	0	0	158,522	158,522
Financial contracts Fish Pool	0	24,819	0	24,819
Equity instruments
Unlisted equity instruments	0	17,102	0	17,102
Debt instruments
Other non-current receivables	83,112	0	0	83,112
Trade receivables	1,456,963	0	0	1,456,963
Other current receivables	478,861	0	0	478,861
Cash and cash equivalents	785,271	0	0	785,271
Total financial assets	2,804,207	41,921	602,864	3,448,993
Liabilities
Interest-bearing debt
Debts to credit institutions	10,416,775	0	0	10,416,775
Green bond	3,475,193	0	0	3,475,193
Derivatives
Interest and currency rate swaps	0	0	12,898	12,898
Other financial liabilities
Trade payables	3,965,936	0	0	3,965,936
Total financial liabilities	17,857,904	0	12,898	17,870,802

Financial Statement and Results Notes to the Financial Statements for 2023

153

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.8 Financial assets and financial liabilities

Financial instruments – assessment of fair value

All assets and liabilities for which fair value is measured or disclosed in the financial statements are

categorised within the fair value hierarchy, described as follows, based on the lowest level input that is

significant observable inputs an minimising the use of unobservable inputs.

• Level 1 - Price listed in an active market for identical assets or liabilities

• Level 2 - Valuation based on other observable inputs either directly (price) or indirectly

(deduced from prices) than listed price (used in level 1) for the asset or liability

• Level 3 - Valuation based on inputs not derived from observable markets (non-observable

assumptions)

The following table presents the fair value measurement hierarchy of the Group's assets and liabilities.

See Note 3.9 for details of derivatives measured at fair value under Level 2.

	Quoted
	prices in	Significant	Significant
	active	observable	unobservable
	markets	inputs	inputs
31 December 2023 (NOK 1,000)	(Level 1)	(Level 2)	(Level 3)	Total
Assets
Derivatives
Forward currency contracts	0	444,343	0	444,343
Interest and currency derivatives	0	158,522	0	158,522
Financial contracts Fish Pool	0	24,819	0	24,819
Equity instruments
Other shares and securities	0	0	17,102	17,102
TOTAL assets	0	627,684	17,102	644,786
Liabilities
Derivatives
Interest and currency rate swaps	0	0	12,898	12,898
TOTAL liabilities	0	0	12,898	12,898

	Quoted
	prices in	Significant	Significant
	active	observable	unobservable
	markets	inputs	inputs
31 December 2022 (NOK 1,000)	(Level 1)	(Level 2)	(Level 3)	Total
Assets
Derivatives
Forward currency contracts	0	66,076	0	66,076
Interest and currency derivatives	0	247,802	0	247,802
Financial contracts Fish Pool	0	33,006	0	33,006
Equity instruments
Other shares and securities	0	0	42,434	42,434
Debt instruments
Other receivables	0	0	10,561	10,561
TOTAL assets	0	346,884	52,995	399,879
Liabilities
Derivatives
Financial contracts Fish Pool	0	26,924	0	26,924
TOTAL liabilities	0	26,924	0	26,924

Financial Statement and Results Notes to the Financial Statements for 2023

154

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.9 Hedging activities and derivatives

NOTE 3.9 Hedging activities and derivatives

Accounting policies

Forward currency contracts

The Group uses forward currency contracts and currency option con-

tracts to reduce the foreign exchange risk relating to future sales

revenues deriving from customer contracts denominated in foreign

currencies for the physical delivery of salmon. The Group's contracts

fall due for payment between January 2024 and December 2025,

and hedge all trade receivables and cash flows from sales contracts

in foreign currencies during this period.

The contracts are recognised at fair value in the balance sheet. The

fair value are measured by using valuation techniques, which employ

the use of market observable inputs such as forward pricing and swap

models using present value calculations. The models incorporate

various inputs including the credit quality of counterparties, foreign

exchange spot and forward rates, yield curves of the respective cur-

rencies, currency basis spreads between the respective currencies.

Recognition of gains and losses relating to the forward currency

contracts depends on whether they qualify for hedge accounting.

For forward currency contracts and currency option contracts that

qualify for hedge accounting, the fair value of the effective portion

is recognised in other comprehensive income. When time differences

arise between receipts from sales contracts and the settlement of

forward hedges, the currency account replaces the forward hedges

as the hedging instrument. Drawdowns on the currency account,

when this is deemed to be the hedging instrument, are recognised

at the exchange rate in effect on the reporting date and the revalu-

ation effect is recognised in OCI. Gains and losses recognised in OCI

and accumulated equity are recycled to profit and loss in the same

period as the hedged expected future cash flows affect profit and

loss. Inefficiency in hedging factors arises when the hedged volume

deviates from the delivered volume. The inefficiency is recognised as

a financial item in profit and loss.

The Group complies with the criteria set out in IFRS 9 when assessing

whether the contract meets the requirements for hedge accounting.

This means that satisfactory documentation of the matter to be

hedged must exist when the hedge is entered into, and there must

be a high level of efficiency, in that the hedge reflects the expected

cash flow from the underlying sales contract. There must also be

a high degree of probability that the future cash flow will materialise

and the efficiency of the hedge must be measurable. The efficiency

of hedges is monitored continuously.

For contracts which do not qualify for hedge accounting, any change

in the fair value are recognised as a change in fair value through

profit and loss.

The hedging rate is the spot rate adjusted for a forward element.

The forward element is the difference between the spot rate and

the forward rate, and reflects the difference in the rate of interest

between NOK and the currency traded. When several forward hedges

are linked to a sales contract, the hedging rate is calculated as the

volume-weighted forward rate for the underlying hedges.

Interest and currency swaps

The group has entered into interest swaps and a cross-currency

interest rate swap with the purpose of hedging interest rate risk for

a share of the group's loans with floating interest rates and hedging

of currency risk related to the operations in Iceland. The hedging of

interest rate risk is a cash flow hedging, and the hedging of the busi-

ness in Iceland is a net investment hedging, both hedging conditions

are considered to satisfy the requirements for hedge accounting. The

fair value of the swaps are valued using valuation techniques, which

employ the use of market observable inputs such as forward pricing

and swap models using present value calculations. The models incor-

porate various inputs including the credit quality of counterparties,

foreign exchange spot and forward rates, yield curves of the respective

currencies, currency basis spreads between the respective currencies

and interest rate curves. Recognition of gains and losses relating to

the forward currency contracts depends on whether they qualify for

hedge accounting. The fair value changes of the swaps qualifying for

hedge accounting are recognised in other comprehensive income, and

the swap costs are amortised as interest costs over the term of the

agreement. The effectiveness of hedging is measured at the end of

each period, any ineffective portion will be recognised as a financial

item in the profit and loss.

Financial contracts with Fish Pool

The Group enters into financial contracts on Fish Pool to hedge prices

relating to purchase and sales contracts for the physical delivery of

salmon. The contracts fall due for settlement within one year. Real-

ised gains or losses on these contracts are recognised in operating

profit/loss. The contracts are measured at fair value. Unrealised gains

and losses are included in fair value adjustments in profit and loss.

The fair value of Fish Pool contracts is calculated on the basis of the

contract's agreed settlement price, the market value of the fish on

the reporting date, the contract's term and observable market prices

for contracts with an equivalent term .

Financial Statement and Results Notes to the Financial Statements for 2023

155

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.9 Hedging activities and derivatives

Derivatives
		2023			2022
	Other non-	Other	Other non-	Other non-	Other	Other
Recognised at fair value	current	current	current	current	current	current
at 31 Dec (1,000 NOK)	receivables	receivables	liabilities	receivables	receivables	liabilities
Forward currency contracts		444,343	0		66,076	0
Interest and currency swaps	158,522	0	12,898	247,802	0	0
Financial contracts Fish Pool		24,819	0		33,006	26,924
Total	158,522	469,162	12,898	247,802	99,082	26,924

Forward currency contracts
	2024		2025
		Average		Average
		volume-		volume-
Forward currency contracts	Currency	weighted	Currency	weighted
with changes in value through	amount	hedging	amount	hedging	Carrying
profit and loss (NOK 1,000)	(1,000)	rate	(1,000)	rate	amount
Forward Sale CAD	4,500	7.10	0	0	-2,608
Forward Sale EUR	86,248	11.81	0	0	1,933
Forward Sale GBP	476	13.34	0	0	53
Forward Sale JPY	1,301,105	0.076	0	0	5,184
Forward Sale SEK	6,565	1.022	0	0	50
Forward Sale USD	37,368	10.55	0	0	13,999
Total					18,612
Forward currency contracts with changes
in value through OCI (NOK 1,000)
Forward Sale CAD	-39,500	7.86	0	0.00	14,467
Forward Sale EUR	174,857	11.79	1,108	12	90,849
Forward Sale GBP	16,242	13.27	0	0	6,515
Forward Sale JPY	2,402,385	0.077	31,734	0	10,683
Forward Sale USD	442,580	10.66	7,700	10.80	248,943
FX Option EUR	104,400		10,800		54,273
Total					371,457
Carrying amount at 31 December 2023					444,343

	2023		2024
		Average		Average
		volume-		volume-
Forward currency contracts	Currency	weighted	Currency	weighted
with changes in value through	amount	hedging	amount	hedging	Carrying
profit and loss (NOK 1,000)	(1,000)	rate	(1,000)	rate	amount
Forward Sale CAD	4,700	7.08	0	0	-991
Forward Sale EUR	4,883	10.41	0	0	-486
Forward Sale GBP	190	11.86	0	0	-5
Forward Sale JPY	341,193	0.075	0	0	290
Forward Sale SEK	2,385	0.95	0	0	1
Forward Sale USD	35,297	9.66	0	0	-2,570
Total					-3,762
Forward currency contracts with changes
in value through OCI (NOK 1,000)
Forward Sale CAD	37,500	7.14	800	7.61	-6,468
Forward Sale EUR	19,814	10.19	0	0.00	-6,469
Forward Sale GBP	912	12.02	0	0.00	150
Forward Sale JPY	4,338,968	0.075	0	0.000	-1,052
Forward Sale USD	347,317	10.21	5,870	10.06	83,677
Total					69,838
Carrying amount at 31 December 2022					66,076

			Change in value
Specification of cash flow		As at 31	of drawdowns on	Change in fair
hedging through OCI	As at 1 January	Dec	currency account	value through OCI
2023	69,838	433,642	8,363	355,441
2022	53,801	69,838	688	15,349

For forward currency contracts which qualify for hedge accounting, an inefficiency of NOK -10.3 million

has been recognised in 2023 (NOK -9.2 million in 2022). The effect is classified as a financial expense

in profit and loss .

Financial Statement and Results Notes to the Financial Statements for 2023

156

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.9 Hedging activities and derivatives

Interest and currency derivatives regarding debt 2023

Interest and
currency derivatives					Nominal		Carrying
with changes in		Nominal value	Book value		value hedge		value of net
value through OCI		hedge instruments	hedge object		instruments		investment		Hedging	Carrying
(NOK 1,000)	(1000	NOK)	(1000	NOK)	(1000	EUR)	(1000	EUR)	efficiency	amount
Cash flow hedge reserve		3,434,667		3,434,667					100 %	220,825
Net investment reserve						-98,335		126,260	100 %	-102,662
Cost of hedging reserve										19,322
Total										137,485
Changes through profit and loss
Accrued value of net interest										8,138
Carrying amount at 31 December 2023										145,623

Specification of hedging	As at 1	As at	Changes
effects in OCI in 2023	January	31 Dec	over OCI
Changes in Cash flow hedge reserve	217,578	219,790	2,213
Changes in Net investment reserve	-34,221	-102,662	-68,441
Changes in Cost of hedging reserve	58,487	19,322	-39,165
Total	241,844	136,450	-105,393

			Changes
Specification of hedging			over
effects over profit	As at 1	As at	profit
and loss in 2023	January	31 Dec	and loss
Changes in net accrued interest	5,958	8,138	2,180
Amortization of swap cost reclassified from hedging reserve to interest cost	-3,124	-4,970	-1,845
Total			334

In 2021, an interest rate currency swap agreement was entered into of which NOK 1,000 million of

the group's bond loan (note 3.11) with floating interest rates was swapped to EUR 98,335 million

with fixed interest rates (the agreement is divided between three banks). The agreement matures in

January 2027. The change from floating interest rates to fixed interest rates in NOK in the agreement

is defined as cash flow hedging of interest costs. Interest rate conditions and maturity structure on

the bond loan and swap are identical and there is therefore an effective financial connection between

the hedging instrument and the hedged item. The conversion of loan amounts from NOK to EUR debt

through the swap contract is defined as Net Investment Hedging. This is a hedging of the currency

value of investing in Icelandic Salmon. The hedging of the exposure in EUR in Iceland will be effective

as long as the nominal value of the net investment is greater than the nominal value of the hedging

instrument. There has been no inefficiency in hedging conditions in the past year.

In 2021 an interest rate swap was entered into in which NOK 192.7 million of the groups bank loan (note

3.11) with floating interest rates was swapped to a fixed rate. The agreement matures in January 2032.

With effect from 4 February 2022, SalMar ASA entered into fixed rate interest swap contracts with a total

principal of NOK 2,250 million. 750 million has a duration of 7 years starting 22 April 2022, 750 million

has a duration of 7 years starting 22 January 2025, and 750 million has a duration of 10 years starting

22 January 2024. The interest swap contracts are established with the purpose to reduce the interest

rate risk related to long-term loan .

Financial Statement and Results Notes to the Financial Statements for 2023

157

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.9 Hedging activities and derivatives

Interest and currency derivatives regarding debt 2022

Interest and
currency derivatives					Nominal		Carrying
with changes in		Nominal value	Book value		value hedge		value of net
value through OCI		hedge instruments	hedge object		instruments		investment		Hedging	Carrying
(NOK 1,000)	(1000	NOK)	(1000	NOK)	(1000	EUR)	(1000	EUR)	efficiency	amount
Cash flow hedge reserve		3,442,667		3,442,667					100 %	217,578
Net investment reserve						-98,335		119,458	100 %	-34,221
Cost of hedging reserve										58,487
Total										241,844
Changes through profit and loss
Accrued value of net interest										5,958
Carrying amount at 31 December 2022										247,802

Specification of hedging	As at 1	As at	Changes
effects in OCI in 2022	January	31 Dec	over OCI
Changes in Cash flow hedge reserve	0	217,578	217,578
Changes in Net investment reserve	0	-34,221	-34,221
Changes in Cost of hedging reserve	0	58,487	58,487
Total	0	241,844	241,844

			Changes
Specification of hedging			over
effects over profit	As at 1	As at	profit
and loss in 2022	January	31 Dec	and loss
Changes in net accrued interest	691	5,958	5,267
Amortization of swap cost reclassified from hedging reserve to interest cost	-1,279	-3,124	-1,845
Total			3,422

Financial contracts Fish Pool
	2024
			Average
			volume-
		Volume	weighted	Market
NOK 1,000	Type	(1,000)	price per kg	value
Fish Pool contracts	Sale	2,260	91.3	-15,811
Fish Pool contracts	Buy	5,700	90.9	40,630
Carrying amount at 31 December 2023				24,819
	2023
			Average
			volume-
		Volume	weighted	Market
NOK 1,000	Type	(1,000)	price per kg	value
Fish Pool contracts	Sale	1,430	65.3	6,082
Carrying amount at 31 December 2022				6,082

In 2023, a net profit of NOK 50.1 million (net loss of NOK 307.0 million in 2022) was realised on Fish

Pool contracts . Gains and losses are recognised in the operating result. In 2023, unrealised changes

in the fair value of Fish Pool contracts amounted to a net gain of NOK 18.7 million. Unrealised

changes in the fair value of Fish Pool contracts amounted in 2022 to a net gain of NOK 91.3 million,

of which NOK 69.7 was through fair value adjustment and NOK 21.5 was classified as other

financial income .

Financial Statement and Results Notes to the Financial Statements for 2023

158

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.10 Cash & cash equivalents

NOTE 3.10 Cash & cash equivalents

NOK 1,000	31.12.2023	31.12.2022	A total of NOK 164.2 million (2022: NOK 154.6 million) in restricted tax withholdings is included in the
Cash and cash equivalents, unrestricted funds	621,103	2,558,078
Cash and cash equivalents, restricted funds	164,169	154,629
Total cash and cash equivalents at 31 December	785,271	2,712,707

item cash and cash equivalents.

Financial Statement and Results Notes to the Financial Statements for 2023

159

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.11 Interest-bearing liabilities

NOTE 3.11 Interest-bearing liabilities

Non-current interest-bearing liabilities (NOK 1,000)	31.12.2023	31.12.2022
Non-current interest bearing liabilities	9,258,965	17,830,132
Green bond	3,500,000	3,500,000
Amortised cost	-89,919	-32,853
Total	12,669,046	21,297,279
Next year's instalment on non-current interest bearing liabilities	-457,820	-2,947,307
Total	12,211,226	18,349,972
Lease liabilities	1,845,494	1,425,297
Next year's instalment on lease liabilities	-343,753	-273,081
Total	1,501,741	1,152,216
Total carrying amount at 31 December	13,712,967	19,502,188

Current interest bearing liabilities	2023	2022
Bank overdraft	1,222,922	494,814
Next year's instalment on non-current interest bearing liabilities	457,820	2,947,307
Current interest bearing liabilities ex. lease liabilities	1,680,742	3,442,121
Next year's instalment on lease liabilities	343,753	273,081
Total carrying amount at 31 December	2,024,495	3,715,203
Total interest-bearing liabilities	15,737,462	23,217,390
Cash and cash equivalents	785,271	2,712,707
Lease liabilities	1,845,494	1,425,297
Net interest-bearing debt	13,106,697	19,079,386
Total interest-bearing liabilities	2023	2022
Unused credit facilities	8,740,369	6,476,426
Unused bank overdraft	1,013,858	1,657,387
Total unused drawing rights	9,754,227	8,133,813

The fair value of borrowings are not materially different from their carrying amounts since the interest

payable on the borrowings is either close the current market rates or the borrowings are of short-term

nature. Next year's instalments on bank loans and lease agreements are classified as current liabilities

in the balance sheet. See Note 4.1 for details of the maturity profile of the Group's liabilities.

In 2021 and 2022 the Group entered into a cross-currency interest swap and interest rate swaps to

reduce the risk related to floating interest rate. These contracts are established with the purpose to

reduce the interest rate risk related to long-term loan. See note 3.9 "Hedging activities and derivatives"

and note 4.1 "Financial risk management" for further details regarding the swaps.

Financial Statement and Results Notes to the Financial Statements for 2023

160

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.11 Interest-bearing liabilities

As at 31 December 2023 per currency
NOK 1,000	NOK	EUR	JPY	USD	GBP	Other	Total
Non-current
interest bearing	11,595,839	615,387	0	0	0	0	12,211,226
liabilities
Lease liabilities	1,804,234	0	0	0	0	41,261	1,845,494
Current interest- bearing liabilities	1,467,156	75,670	75,554	38,978	18,176	5,207	1,680,742
Total interest- bearing debts	14,867,229	691,057	75,554	38,978	18,176	46,468	15,737,462
Cash and cash	607,284	47,460	36,704	59,851	13,116	20,857	785,271
equivalents
Lease liabilities	1,804,234	0	0	0	0	41,261	1,845,494
Net interest- bearing debts	12,455,711	643,597	38,851	-20,873	5,059	-15,650	13,106,697

As at 31 December 2022 per currency
NOK 1,000	NOK	EUR	JPY	USD	GBP	Other	Total
Non-current
interest bearing	17,804,959	545,013	0	0	0	0	18,349,972
liabilities
Lease liabilities	1,380,072	7,567	0	0	0	37,658	1,425,297
Current interest- bearing liabilities	3,176,402	111,144	2,931	78,988	39,726	32,931	3,442,121
Total interest- bearing debts	22,361,433	663,723	2,931	78,988	39,726	70,589	23,217,390
Cash and cash	2,764,389	-80,665	-53,538	59,548	5,813	17,161	2,712,707
equivalents
Lease liabilities	1,380,072	7,567	0	0	0	37,658	1,425,297
Net interest- bearing debts	18,216,972	736,822	56,469	19,440	33,914	15,770	19,079,386

Financial Statement and Results Notes to the Financial Statements for 2023

161

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.11 Interest-bearing liabilities

Financing activities - changes in liability at 31 December 2023:					Non-cash generating effects
				Change in next
		Cash flow from		year's instalments
	31.12.22	financing activities	Currency effects	on long-term debts	Other effects	31.12.23
Non-current debts	18,349,972	-8,660,255	39,596	2,489,487	-7,575	12,211,226
Current debts to credit institutions	3,442,121	713,521	3,310	-2,489,487	11,276	1,680,742
Total debts to credit institutions	21,792,093	-7,946,734	42,907	0	3,701	13,891,967
Non-current and current lease liabilities	1,425,297	-321,096	2,501	0	738,792	1,845,494
Total interest-bearing debts	23,217,390	-8,267,829	45,408	0	742,493	15,737,462

Financing activities - changes in liability at 31 December 2022:				Non-cash generating effects
				Change in next
		Cash flow from	Changes through	year's instalments
	31.12.21	financing activities	business combinations	Currency effects	on long-term debts	Other effects	31.12.22
Non-current debts	4,906,560	7,191,840	9,008,620	28,242	-2,785,290	0	18,349,972
Current debts to credit institutions	571,274	-127,923	211,704	1,742	2,785,290	0	3,442,121
Total debts to credit institutions	5,477,834	7,063,917	9,220,324	29,983	0	0	21,792,093
Non-current and current lease liabilities	967,166	-229,333	484,370	3,771	0	199,323	1,425,297
Total interest-bearing debts	6,445,000	6,834,585	9,704,694	33,754	0	199,323	23,217,390

For details regarding change in subsidiaries see Note 4.5.

Interest-bearing debt in more detail

In August 2023, SalMar entered into a new senior unsecured credit

facility agreement, totalling NOK 16,000 million, with the intention of

making it sustainability linked. The agreement comprises a 3+1+1 year

term loan with a total of NOK 6,000 million, a 5+1+1 year rolling credit

facility of NOK 10,000 million, and a NOK 3,000 million in accordion

option. The facilities have an interest rate based on 3-months NIBOR

plus a margin. The new senior unsecured credit facility is a syndicated

agreement that consists of 5 banks composed in two tiers, each tier

with various share of the total facility.

SalMar has annually renewable multicurrency cash pooling arrange-

ments limited to NOK 1,600 million. As at 31 December 2023, the

Group had drawn NOK 1,223 million on this arrangement (2022: no

drawdown). Deposits and drawdowns in various currencies relating to

the group account scheme are recognised net in the Group’s financial

statements.

With effect from 22 April 2021, SalMar ASA issued an unsecured

green bond totalling NOK 3,500 million. No installments on the loan

are payable during the period of the agreement, which matures on 22

January 2027. The bond carries an interest rate at 3-months NIBOR +

1.35 % per annum, due quarterly. The loan is capitalised at amortised

cost using the effective interest rate method. The loan's net book

value as at 31 December 2023 is NOK 3,475 million. The bond loan

is listed on the Oslo Stock Exchange under the ticker SALM01 ESG.

During November 2023, Arnarlax Ehf, the groups subsidiary in Iceland

completed a refinancing process totalling facilities of 95 MEUR. The

facilities consist of a term loan of 30 MEUR, a revolving facility of

65 MEUR and an additional overdraft facility of 5 MEUR. The current

Financial Statement and Results Notes to the Financial Statements for 2023

162

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.11 Interest-bearing liabilities

facility agreement is valid until November 2026 with a possibility of

two years extension. Per 31.12.2023 there were no drawdown on

the overdraft facility. The covenants require an equity ratio above

35 per cent and profit requirement that requires that the Compa-

ny’s 12-month rolling interest coverage ratio must not be lower than

4.0:1. In addition, the Company’s NIBD / 12-month rolling EBITDA

should not exceed 6.0:1 each relevant period expiring on or prior

to 31 December 2024 and not exceed 4.0:1 each relevant period

expiring thereafter.

In November 2023, the subgroup SalMar Aker Ocean entered

into a new credit facility agreement, comprising of a term loan of

NOK 200 million and an annually renewable overdraft facility of

NOK 250 million. The term loan is a bullet loan with termination date

27 November 2026. Per 31.12.2023 there were no drawdown on

the overdraft facility. The covenants are based on standard ratios

and has financial requirements of an equity ratio above 40 per cent.

Financial covenants

The most important financial covenants for the long-term financing

of SalMar ASA are, respectively, a solvency requirement, which stipu-

lates that the Group’s recognised equity ratio shall exceed 30 %, and

a profitability requirement, which stipulates that the Group’s interest

coverage rate (EBITDA/net financial expenses) shall not fall below 3.0.

The green bond has a financial covenant requiring an equity ratio of

30 % in the agreement period.

The financing schemes of Arnarlax Ehf and SalMar Aker Ocean are

independent from SalMar ASA. Both SalMar ASA, Arnarlax Ehf and

SalMar Aker Ocean were in compliance with all the above-mentioned

covenants as of 31 December 2023.

Subsidiaries with individual financial agreements

Vikenco has an overdraft facility capped at NOK 50 million, of which

there was no drawdown as at 31. December 2023. In addition, the

company has two instalment loans with a carrying amount of respec-

tively NOK 178 million and NOK 58 million.

Osan Settefisk AS has a term loan with net carrying amount at

31 December 2023 of NOK 414 million (2022: NOK 445 million) and

an overdraft facility agreement of NOK 15 million, of which there was

no drawdown as at 31. December 2023.

Refsnes Laks AS, has a term loan with net carrying amount at

31 December 2023 of NOK 48.3 million (2022: 0), the loan matures

in June 2025.

Supply Chain Financing

The Group has entered into a supply chain financing agreement (SCF),

meaning that some vendors will indirectly offer extended credit terms

to the company through a separate agreement with the Group's bank.

The vendors sell their trade receivables to the bank in order to receive

payment immediately. Payment terms under the SCF agreement are

in line with industry practice. The transaction is still between the

company and its suppliers, and are therefore classified as trade pay-

ables, and changes in trade payables related to the SCF agreement

is classified as cash flow from operating activities in the statement

of cash flow. As at 31 December 2023 the carrying amount of the

financed amount was NOK 2,562.2 million (31 December 2022:

NOK 1,672.7 million), and of this NOK 2,532.3 million was paid to

the vendors.

Receivable Purchase Agreement

SalMar has entered into an agreement with a financial institution for

transferred receivables that meet certain predefined criteria. See Note

3.7 for further details of this arrangement.

Lease liabilities

See Note 3.4 for further details of the Group’s capitalised lease

liabilities.

Financial Statement and Results Notes to the Financial Statements for 2023

163

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.12 Mortgage and guarantees

NOTE 3.12 Mortgage and guarantees

Liabilities secured by mortgage (NOK 1,000)	31.12.2023	31.12.2022
Non-current interest bearing debt *	1,112,205	14,882,825
Current interest bearing debt *	570,153	3,442,121
Lease liabilities	1,845,494	1,425,297
Total debt secured by mortgages and pledges at 31 December	3,527,852	19,750,243

'* During the third quarter in 2023, SalMar entered into a new senior unsecured credit facility agreement

totalling NOK 16 billion. The non-current and current interest bearing debt that is secured by mortgage

is represented by Group companies with independent financing schemes. See Note 3.11 for further

information.

Assets pledged as security for debt (NOK 1,000)	31.12.2023	31.12.2022
Licences	3,438,018	14,875,519
Property, plant and equipment and right-to-use assets	4,512,098	12,517,825
Biological assets and other inventory	1,576,980	11,754,721
Trade receivables	632,737	1,414,135
Total assets pledged as security at 31 December	10,159,834	40,562,200

Financial Statement and Results Notes to the Financial Statements for 2023

164

Financial Statement and Results Notes to the Financial Statements for 2023 Note 3.13 Current liabilities

NOTE 3.13 Current liabilities

Accounting policies

Onerous contacts

Physical fixed-price sales contracts whose price is less than the price used as the basis for adjusting the

fair value of the biomass are recognised as liabilities in the financial statements. The amount recognised

as a liability is the difference between the market price at the balance sheet date plus costs to sell and

the contract price. Changes in provisions are recognised in a separate line in the statement of profit and

loss and are included in the operational profit .

Other current liabilities (NOK 1,000)	31.12.2023	31.12.2022
Salaries and vacation pay due	214,380	207,510
Derivatives	0	26,924
Accruals for clean-up cost	304,077	224,173
Accrued interest cost	53,595	117,462
Other accrued expenses	401,053	515,156
Accruals for production tax	83,465	18,805
Contingent liability from business combination	55,125	55,125
Provisions for onerous contracts	342,202	104,799
Total carrying amount at 31 December	1,453,897	1,269,954

Provisions related to onerous contracts is increased by NOK 237.3 million (2022: Provision decreased

by NOK 126.3 million in 2022, recognised in operating profit) .

There is a contingent liability related to a previous business combination in Salmar Farming AS, related

to merged-in company SalMar Namdal AS.. As part of the purchase agreement with the previous owners

of MNH Holding AS, a contingent consideration was agreed. The consideration is dependent on licence

volumes for Fiskeldi Austfjarda and is measured at fair value over the result .

Financial Statement and Results Notes to the Financial Statements for 2023

165

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.1 Financial risk management

Part 4 Other Notes

NOTE 4.1 Financial risk management

Financial risk

Through its activities, the Group is exposed to various kinds of financial

risk: market risk, credit risk and liquidity risk. The Group management

oversees the management of these risks and draws up guidelines

for dealing with them. The Group makes use of financial derivatives

to hedge against certain risks. The Board of Directors has defined

a financial risk appetite that sets overarching limits.

The Group has drawing facilities on a syndicate of banks, which ensure

sufficient flexibility both operationally and with respect to the financ-

ing of investments in SalMar's operations. In August 2023, SalMar

entered into a new senior unsecured credit facility agreement, with

the intention of making it sustainability linked. The agreement includes

NOK 3,000 million in accordion option and is a syndicated agreement

that consists of 5 banks composed in two tiers, each tier with various

share of the total facility. In 2021 the Group issued a green bond

to secure further sustainable growth. In addition, the company has

financial instruments, such as trade receivables, trade payables, etc.,

which are directly related to day-to-day business operations.

The two subgroup's, Arnarlax Ehf and SalMar Aker Ocean, have inde-

pendent financing schemes. In addition, Vikenco, Osan Settefisk AS and

Refsnes Laks AS are subsidiaries with individual financial agreements.

It is the Group’s policy that no trading in derivatives for speculative

purposes may be undertaken.

Market risk

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows

of a financial instrument will fluctuate because of changes in mar-

ket interest rates. The Group’s exposure to the risk of changes in

market interest rates relates primarily to the Group’s long-term debt

obligations with floating interest rates. The risk is partly reduced by

the opposite effect on cash equivalents which earn floating interest.

With effect from 4 February 2022, SalMar ASA entered into fixed

rate interest swap contracts with a total principal of NOK 2,250 mil-

lion. 750 million has a duration of 7 years starting 22 April 2022,

750 million has a duration of 7 years starting 22 January 2025, and

750 million has a duration of 10 years starting 22 January 2024. The

interest swap contracts are established with the purpose to reduce

the interest rate risk related to long-term loan. In 2021 the Group has

entered into a to cross-currency interest swap and a interest swap

to manage the interest rate. For more details regarding the swaps

see note 3.9.

Interest rate sensitivity

Given the financial instruments in effect on 31 December 2023,

after the impact of hedge accounting, an increased interest rate of

1.0 per cent would reduce the Group's profit by net NOK 130.9 mil-

lion (2022: reduced profit by NOK 242.2 million), all other variables

remaining constant. The effect related to the hedging instruments

over OCI would rise by NOK 19.3 million given an increase in the

interest rate of 1 % (2022: 1 % rise would lead to a positive effect

of NOK 19.4 million). See note 3.11 for more information regarding

interest-bearing debt.

Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash

flows of an exposure will fluctuate because of changes in foreign

exchange rates. The Group’s exposure to the risk of changes in foreign

exchange rates relates primarily to the Group’s operating activities and

the Group’s net investments in the operations on Iceland. The Group

operates internationally, and is exposed to foreign exchange risk in

several currencies. This risk is particularly relevant with respect to the

USD, EUR, GBP, CAD and JPY.

The foreign exchange risk associated with revenues and assets

denominated in foreign currencies is partly hedged through the use

of forward contracts and currency accounts. The use of forward

currency contracts is described in Note 3.9.

The foreign exchange risk associated with the operations at Iceland

is hedged by the cross-currency interest swap described in section

"Interest rate risk". The swap hedges the full carrying value of the

net investment.

Foreign currency sensitivity

Given the financial instruments in effect on 31 December 2023,

a weakening of 10 per cent of the NOK would increase the Group's profit

before tax by NOK 940.0 million (2022: NOK 454.6 million). The whole

effect would go through the profit and loss in 2024 as all material

financial instruments fall due within the end of 2024 .

Financial Statement and Results Notes to the Financial Statements for 2023

166

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.1 Financial risk management

The following table demonstrate the impact on the Group's profit

before tax related to a reduction in the exchange rate of 10 per cent:

NOK 1,000	31.12.2023	31.12.2022
EUR	-62,165	-12,300
JPY	3,307	-3,380
GBP	-3,198	-159
CAD	-5,049	-3,353
USD	-66,644	-45,880

The Group’s exposure to foreign currency changes for all other currencies

is not material .

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations

under a customer contract, leading to a financial loss. The Group is

exposed to credit risk from its operating activities, primarily from

trade receivables. The Group's policy is to credit insure material trade

receivables, and losses due to bad debts have historically been low. The

Group has guidelines to ensure that sales are made only to customers

that have not previously had material payment problems, and where

outstanding balances do not exceed fixed credit limits. An impairment

analysis is performed at each reporting date using a provision matrix to

measure expected credit losses. Credit risk relating to the Group's cash

holding is deemed low.

Gross credit risk on the reporting date equals the Group's total receiv-

ables on the same date. See Note 3.7 .

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its

financial obligations as they are due. Cash flow forecasts are prepared

on a regular basis and the Finance Dept. monitors rolling forecasts for

the Group’s liquidity requirements to ensure that the Group has suffi-

cient cash equivalents to meet operational liabilities, as well as at all

times having adequate flexibility in the form of unused credit facilities

(see Statement of Cash Flows), such that the Group does not infringe

borrowing limits or specific borrowing conditions. The Group’s objective

is to have sufficient cash, cash equivalents or medium-term credit

facilities to meet its borrowing requirements in the short term. See

Note 3.11 for details of the Group’s available credit facilities.

The table below details the Group’s non-derivative financial liabilities

classified by maturity structure. The figures presented in the table

are undiscounted contractual cash flows.

Maturity structure for financial liabilities at 31 December 2023
Maturity	Total	2024	2025	2026	2027	2028	After 2028
Long-term debt	12,669,046	426,203	40,322	6,576,430	3,719,090	1,719,333	187,667
Interest on long-term debt	2,330,999	742,145	737,028	544,090	231,388	64,898	11,449
Lease liabilities	1,845,494	343,752	275,618	221,630	178,757	144,631	681,106
Interest on lease liabilities	374,540	111,717	93,065	58,214	46,080	35,223	30,239
Short-term credit facilities	46,745	46,745	0	0	0	0	0
Interest on short-term debt	803	803	0	0	0	0	0
Trade payables	3,965,936	3,965,936	0	0	0	0	0
Total liabilities	21,233,563	5,637,302	1,146,033	7,400,365	4,175,316	1,964,086	910,461

Maturity structure for financial liabilities at 31 December 2022
Maturity	Total	2023	2024	2025	2026	2027	After 2027
Long-term debt	21,297,279	2,947,307	12,147,649	2,506,681	9,646	3,515,329	170,667
Interest on long-term debt	1,706,433	1,000,633	301,477	217,970	158,975	16,666	10,712
Lease liabilities	1,425,297	273,081	209,221	162,488	127,947	102,132	550,427
Interest on lease liabilities	323,310	65,583	57,880	56,244	51,393	47,624	44,587
Short-term credit facilities	494,814	494,814	0	0	0	0	0
Interest on short-term debt	70,908	70,908	0	0	0	0	0
Trade payables	3,337,649	3,337,649	0	0	0	0	0
Total liabilities	28,655,690	8,189,975	12,716,227	2,943,383	347,961	3,681,752	776,394

Fina ncial Statement and Results Notes to the Financial Statements for 2023

167

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.1 Financial risk management

Maturity

The Group's trade payables are normally at net 30 payment terms,

except for payables related to the purchase of feed, which has a longer

credit time.

For a description of the maturity structure for the Group's long-term

debt, see Note 3.11.

Capital structure and equity

The objective of the Group’s capital management is to safeguard the

Group’s continued operations in order to secure a return on investment

for shareholders and other stakeholders, and maintain an optimal

capital structure for reducing capital costs. By ensuring a good debt

to-equity ratio the Group will support its business operations, and

thereby maximise the value of the Group’s shares.

To further focus on the objective to maximise the value of the

Group's shares, reference is made to the stock exchange announcement

on 23 October 2023 regarding the general meeting of SalMar ASA

("SalMar") resolving to reduce SalMar's share capital by NOK 3,275,000

from 36,284,730 to NOK 33,009,730 by cancelling of 13,100,000

own treasury shares. See Note 4.2 and 4.3 for further details.

The Group manages and makes changes to its capital structure in

response to an ongoing assessment of the financial conditions under

which the business operates, and its short and medium-term outlook,

including any adjustment in dividend pay-outs, buyback of treasury

shares, capital reduction or issue of new shares. No changes were

made in the guidelines covering this area in 2023.

The company monitors its capital management on the basis of the

covenants stipulated. These are based on equity ratio, interest cov-

erage ratio and the ratio of net interest-bearing debt to EBITDA. See

Note 3.11 for further details.

As at 31 December 2023, the Group had an equity ratio of 43.3

per cent (31 December 2022: 38.6 per cent). At the close of 2023,

the Group's net interest-bearing debt stood at NOK 13,106.7 million

(2022: NOK 19,079.4 million) See Note 3.11 for further details of the

Group's net interest-bearing debt.

Financial Statement and Results Notes to the Financial Statements for 2023

168

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.2 Share capital and shareholders

NOTE 4.2 Share capital and shareholders

At 31 December 2023, the parent company's share capital comprised:

	Number of
NOK 1,000	shares	Face value	Book value
Ordinary shares	132,038,920	0.25	33,009,730

There are no current limitations on voting rights or trade limitations

related to the SalMar share.

On 13 December 2023, SalMar ASA's share capital was decreased

by 13,100,000 shares (nominal value of NOK 0.25 per share), from

145,138,920 shares to 132,038,920 shares. The share capital was

thus decreased by a total of NOK 3.275 million, from NOK 36.285 mil-

lion to NOK 33.010 million.

As at 31 December 2023, SalMar ASA owned 278,854 treasury

shares, a reduction by 13,427,392 shares, from 13,706,246 treasury

shares as at 31 December 2022.

Shareholders

Overview of the largest shareholders 31.12.2023	Number of shares	Shareholding	Voting share
KVERVA INDUSTRIER AS	59,934,476	45.39 %	45.49 %
FOLKETRYGDFONDET	5,787,976	4.38 %	4.39 %
State Street Bank and Trust Comp	2,076,996	1.57 %	1.58 %
TERBOLI INVEST AS	1,425,394	1.08 %	1.08 %
LIN AS	1,337,685	1.01 %	1.02 %
JPMorgan Chase Bank, N.A., London	1,335,830	1.01 %	1.01 %
HASPRO AS	1,330,830	1.01 %	1.01 %
FRØY KAPITAL AS	1,093,815	0.83 %	0.83 %
CACEIS Bank	1,087,941	0.82 %	0.83 %
State Street Bank and Trust Comp	1,087,715	0.82 %	0.83 %
VERDIPAPIRFONDET ALFRED BERG GAMBA	1,055,226	0.80 %	0.80 %
NILS WILLIKSEN AS	1,018,473	0.77 %	0.77 %
CACEIS Bank	923,297	0.70 %	0.70 %
PARETO AKSJE NORGE VERDIPAPIRFOND	916,400	0.69 %	0.70 %
JPMorgan Chase Bank, N.A., London	910,109	0.69 %	0.69 %
CLEARSTREAM BANKING S.A.	861,574	0.65 %	0.65 %
JPMorgan Chase Bank, N.A., London	844,806	0.64 %	0.64 %
Bank Pictet & Cie (Europe) AG	815,145	0.62 %	0.62 %
ANDVARI AS	810,468	0.61 %	0.62 %
State Street Bank and Trust Comp	798,063	0.60 %	0.61 %
Total 20 largest shareholders	85,452,219	64.72 %	64.85 %
Total other shareholders	46,586,701	35.28 %	35.15 %
Total number of shares 31.12.2023	132,038,920	100.00 %	100.00 %

Financial Statement and Results Notes to the Financial Statements for 2023

169

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.2 Share capital and shareholders

Shares owned by Board Members and Senior Executives:

Name		Number of shares	Shareholding
Gustav Witzøe	Chair of the Board *
Leif Inge Nordhammer	Board Member	**
Morten Loktu	Board Member	1,000	0.00 %
Arnhild Holstad ****	Board Member	3,346	0.00 %
Ingvild Kindlihagen	Board Member - Employees representative	46	0.00 %
Frode Arntsen	CEO	6,962	0.01 %
Ulrik Steinvik	CFO	***
Roger Bekken ****	COO Farming	14,509	0.01 %
Simon A. Søbstad	COO Sales & Industry	604	0.00 %
Runar Sivertsen ****	Chief Strategy Officer	4,509	0.00 %
Eva Haugen	Director Quality Management/HSE	7,900	0.01 %
Arthur Wisniewski	Director Human Resource Management	2,772	0.00 %

* Owns shares indirectly through Kvarv AS, the parent company in the Kverva Group. Kvarv AS directly, and indirectly via its subsidiary Kverva AS,

owns 93.05 per cent of the shares in Kverva AS, which owns 100 per cent of the shares in Kverva Industrier AS. Kverva Industrier AS owns 45.39

per cent of the shares in SalMar ASA and a voting share of 45.49 per cent. Gustav Witzøe has a voting share of 80 per cent and has a 1 per cent

shareholding in Kvarv AS through his ownership of A-shares in the company.

** Owns, directly and indirectly, 1.47 per cent of the shares in SalMar ASA. Leif Inge Nordhammer owns 99.1 per cent of the shares in LIN AS.

LIN AS directly owns 1.01 per cent of the shares in SalMar ASA. In addition, LIN AS owns 0.45 per cent of the shares in the company though a 1

per cent shareholding in Kverva AS, which, through Kverva Industrier AS, owns 45.39 per cent of the shares in SalMar ASA and has a corresponding

45.49 per cent voting share.

*** Owns directly and indirectly 0.09 per cent of the shares in SalMar ASA. Ulrik Steinvik owns 20,121 shares directly and indirectly through

personal related parties, he also owns 100 per cent of the shares in Nordpilan AS. Nordpilan AS owns 0.17 per cent of the shares in Kverva AS,

which owns 100 per cent of the shares in Kverva Industrier AS. Kverva Industrier AS owns 45.39 per cent of the shares in SalMar ASA and has

a corresponding 45.49 per cent voting share.

**** Shares held directly and indirectly through personal related parties .

Financial Statement and Results Notes to the Financial Statements for 2023

170

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.3 Earnings per share

Board authorisations

Authorisations granted to the Board are normally time limited and

are valid only up until the next AGM in 2024 and no later than

30 June 2024.

The Board of Directors has been granted the following authorisations

which may impact the share capital at 31 December 2023:

To increase the company’s share capital limited to NOK 1,814.236.50

through the issue of up to 7,256,946 shares to finance investments

and the acquisition of businesses through cash issues and contribu-

tions in kind.

To issue convertible loans for up to NOK 3,000,000,000 for the

purpose of enabling SalMar, at short notice, to use such financial

instruments as part of its overall financing requirement. In connection

with the conversion of loans raised pursuant to this authorisation,

SalMar’s share capital may be increased by up to NOK 1,814,236.50,

though with account taken of any capital increases undertaken pur-

suant to the authorisation to increase SalMar’s share capital, such that

the total capital increase for both authorisations combined may not

exceed 5 per cent of the share capital. It follows from the purpose

of the authorisations that the Board may need to waive existing

shareholders’ preference rights.

An authorisation to acquire own shares, cf. the Public Limited Lia-

bility Companies Act Section 9 4, for up to 14,513,892 shares with

an aggregate par value of NOK 3,628,473. The rationale for the

Board’s proposal was that such arrangement would amongst other

things give the Board an extended possibility to utilise mechanisms

for distribution of capital to SalMar’s shareholders and to facilitate an

adequate capital structure of SalMar. In addition the Board can buy

back the Company's own shares in order to meet its obligation under

its share-based incentive schemes. The amount payable per share

could be in the range between NOK 1 and NOK 1,000 per SalMar

Share. Exercise of such authorisation was made subject to principles

of equal treatment of shareholders. To ensure that SalMar’s majority

owner’s, Kverva Industrier AS, proportionate shareholding remained

equal it was set in place an arrangement whereby any shares acquired

in the market would be cancelled through a subsequent share capital

decrease and that a corresponding part of Kverva Industrier AS’ shares

would be redeemed.

Dividend

The Board is proposing payment of a dividend of NOK 35 per

share, totalling NOK 4,611.6 million, as at 31 December 2023. No

dividend is paid on the company's treasury shares.

For the 2022 financial year, a dividend of NOK 20 per share, total-

ling NOK 2,628.7 million, was paid out by SalMar ASA.

NOTE 4.3 Earnings per share

NOK 1,000	2023	2022
Profit for the year attributable	3,202,756	3,311,955
to owners of SalMar ASA
Ordinary shares as at 01.01	145,138,920	117,799,999
Treasury shares as at 01.01	13,706,246	102,361
Contributions of equity - increase in number of shares	0	27,338,921
Effect of treasury shares	30,000	-30,000
borrowed from Kverva
Effect of treasury shares after acquisition of NTS ASA	0	-13,691,960
Effect of cancellation	13,100,000	0
of treasury shares
Effect of treasury shares in acquisition of company	209,402	0
Effect of treasury shares	87,990	118,075
awarded to employees
Ordinary shares outstanding	131,760,066	131,432,674
as at 31.12
Weighted average number of ordinary shares for basic EPS	131,452,354	119,800,565
Effects of dilution from share options	180,589	178,240
Weighted average number
of ordinary shares adjusted	131,632,942	119,978,805
for the effect of dilution
Earnings per share
Basic	24.36	27.64
Diluted	24.33	27.60

Financial Statement and Results Notes to the Financial Statements for 2023

171

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.4 Group companies

NOTE 4.4 Group companies

The consolidated financial statements for 2023 includes the following subsidiaries:
				Shareholding
Company	Owner	Country	Registered office	31.12.2023
SalMar Oppdrett AS	SalMar Farming AS	Norway	Kverva	100.00 %
SalMar Settefisk AS	SalMar ASA	Norway	Kverva	100.00 %
SalMar Smolt AS	SalMar Settefisk AS	Norway	Kverva	100.00 %
SalMar Farming AS	SalMar ASA	Norway	Kverva	100.00 %
Øylaks MTB AS*	SalMar Farming AS	Norway	Midsund	49.00 %
Hitramat Farming AS	SalMar ASA	Norway	Kverva	51.00 %
Nor Seafood AS	SalMar ASA	Norway	Botnhamn	82.49 %
Nekton Havbruk AS	SalMar Farming AS	Norway	Kverva	51.00 %
Refsnes Laks AS**	SalMar Farming AS	Norway	Kverva	45.00 %
SalMar Aker Ocean AS	SalMar ASA	Norway	Kverva	85.00 %
Ocean Farming AS	SalMar Aker Ocean AS	Norway	Kverva	85.00 %
Mariculture AS	SalMar Aker Ocean AS	Norway	Kverva	85.00 %
Arctic Offshore Farming AS	SalMar Aker Ocean AS	Norway	Kverva	85.00 %
Osan Settefisk AS	SalMar Farming AS	Norway	Kolvereid	66.00 %
MNH Rederi AS	SalMar Farming AS	Norway	Rørvik	100.00 %
SalmoSea AS	SalMar Farming AS	Norway	Rørvik	74.31 %
Icelandic Salmon AS	SalMar ASA	Norway	Kverva	52.48 %
Arnarlax Ehf	Icelandic Salmon AS	Iceland	Bildudalur	52.48 %
Icelandic Salmon Ehf	Arnarlax Ehf	Iceland	Talknafjørdur	52.48 %
Fjallalax Ehf	Arnarlax Ehf	Iceland	Bildudalur	52.48 %
Vikenco AS	SalMar AS	Norway	Aukra	51.00 %
SalMar Japan KK	SalMar AS	Japan	Japan	100.00 %
SalMar Singapore PTE Ltd.	SalMar AS	Singapore	Singapore	100.00 %
SalMar Vietnam Co., Ltd	SalMar AS	Vietnam	Ho Chi Minh City	100.00 %
SalMar-Tunet AS	SalMar ASA	Norway	Kverva	100.00 %

* Through shareholders agreement, SalMar has established control and

has the power to affect the return from the involvement in Øylaks

MTB AS. For further information, see Note 4.5

** Through shareholders agreement, SalMar has established con-

trol and has the power to affect the return from the involvement in

Refsnes Laks AS.

Disposal of Group companies.

On 5 September 2023 the sale of the Group company Salmonor

Settefisk AS was completed. The total consideration net of cash in

the company was NOK 53.8 million. As a result of the transaction,

there is recognised a gain of NOK 15.4 million included in other oper-

ating income.

On 14 August 2023 the sale of SalMars entire ownership stake in

Frøy AS, representing approximately 72.11 per cent of the shares in

the company, was completed. See Note 4.7 for further information.

Financial Statement and Results Notes to the Financial Statements for 2023

172

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.5 Business combinations

NOTE 4.5 Business combinations and other investments in group companies

2023 – Business combinations and other investments in

group companies

Business combinations

With the exception of a business combination in Frøy AS, there have

not been any acquisition in the group in 2023. Please see note 4.7,

Discontinued operations for more information about the business

combination in Frøy.

Acquisition of company not considered to constitute a business

With effect from 28 December 2023, the Group acquired 49 per cent

of the shares in Øylaks MTB AS. Through shareholder agreements,

SalMar has established control and the company is consolidated into

the SalMar Group from the time of acquisition. Øylaks MTB AS owns

one licence for the production of Atlantic salmon. The licence is oper-

ated by SalMar. Except from owning the licence, there are no other

activity in the company. The activity carried out in the company is

therefore not considered to constitute a business. The total consid-

eration for the 49 per cent interest was NOK 125.3 million, consisting

of 209,402 consideration shares valued at NOK 116.9 million and

NOK 8.4 million to be paid in cash. The fair value of the salmon licence

allocated at the date for purchase was NOK 255.7 million, see Note

3.1 for further information.

2022 – Business combinations

Acquisition and merger of NTS ASA and Norway Royal

Salmon ASA (NRS)

On 17 March 2022, SalMar made a voluntary tender offer to acquire all

outstanding shares in NTS. The acceptance period for the offer was

from 18 March to 29 April 2022. The voluntary offer was conditional

on amongst other things approval by the competition authorities in

both Norway and the EU. At the end of the acceptance period, 52.69

per cent of NTSs shareholders, corresponding to 66,235,009 shares

and votes in NTS, had accepted the offer. At 31 December 2022,

SalMar owned 92.93 per cent of the shares in NTS. See note 4.6 for

further information related to the transaction.

The rationale behind the acquisition was to increase value creation in

the regions where the companies operate and enable the realization

of synergies between the companies. The companies have several

overlapping industrial activities in all the areas in which they operate,

and the transactions contribute to a more efficient utilization of their

resources. This will enable improved utilization of Maximum Allowa-

ble Biomass (MAB) and site portfolios, improved utilization of smolt,

harvesting, and processing facilities.

In parallel with the voluntary offer, a merger plan between SalMar

and Norway Royal Salmon (NRS) with SalMar as the acquiring entity

was entered into. The merger plan was approved by both companies’

general meetings on 30 June 2022. The merger was, among other

things, conditional on that all conditions for the completion of the

offer for had been met or waived.

The transactions were approved by the Norwegian Competition

Authority on 15 July 2022. The European Commission granted its

final approval on 31 October 2022.

In connection with the clearance by the European Commission, SalMar

undertook a commitment to divest the shares in Arctic Fish Holding AS,

assumed by SalMar at the time of completion of the merger. SalMar

undertook, with some exceptions, not to exercise any influence or

control over Arctic Fish in the period from completion of the merger

until a disposal was completed. The shares represented approximately

51.28 per cent of the shares and votes in Arctic Fish. The sales transac-

tion of the shares was completed on 29 December 2022, with a total

contribution net of transaction cost amounted to NOK 1,860 million.

The merger with NRS was completed on 7 November 2022. The share-

holders of NRS received a merger consideration consisting of a cash

consideration of NOK 3,104 million, and a total share consideration of

NOK 5,884 million. The share consideration consisting of 17,851,550

shares valued at a share price of NOK 329.60 which represents the

share price at the time of completion of the merger.

In accordance with the merger plan, NRS completed immediately prior

to the merger the agreed acquisition of SalmoNor from NTS, with

settlement in cash and NRS shares. Total cash consideration in the

transaction was NOK 1,713 million.

Of the total consideration under the merger NOK 2,380 million of the

merger cash consideration was paid to NTS, in addition NTS received

13,691,960 of the total 17,851,550 consideration shares. Further,

the cash consideration of NOK 1,713 million was paid from NRS

to NTS in connection with the acquisition of 100 per cent of the

shares in SalmoNor. The total cash consideration to NTS is as such

NOK 4,093 million. In addition, NTS will own 13,697,303 SalMar shares.

The SalMar shares owned by NTS were valuated to NOK 4,513 million

at the time of the merger. The shares are treated as treasury shares

in the SalMar group, where NOK 2,378 million reduces the equity

attributable to shareholders in SalMar, and NOK 2,135 reduces the

non-controlling interest at the date of acquisition .

Financial Statement and Results Notes to the Financial Statements for 2023

173

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.5 Business combinations

The voluntary offer was completed 10 November 2022. The total cash consideration payable in the

transaction was NOK 1,807 million, and total share consideration amounts to NOK 3,215 million. The share

consideration consisted of total of 9,487,371 new SalMar shares valuated at a share price of NOK 338.87

which represent volume-weighted average price the last 3 trading days before 31 October 2022.

From the time of completion of the offer, SalMar achieved control over NTS. Upon completion of the

offer, NRS was merged into SalMar and SalMar has assumed all assets, rights and obligations in NRS.

For accounting purposes, the transactions was treated as a business combination and the companies

was consolidated into the SalMar group with effect from 1 November 2022. Shares in SalMar owned

by NTS was, as mentioned above, treated as treasury shares in the SalMar Group. The Group elected to

measure the non-controlling interests in the acquiree at fair value. Total acquisition and merger costs

of NOK 82.2 million was in 2022 recognised as other operating expenses in the income statement.

The starting point for the transactions was the voluntary offer made for all outstanding shares in NTS

on 17 March 2022, as well as the subsequent decision to merge SalMar and NRS. The merger was con-

ditional on the offer being completed and this has been the starting point for valuation assessments

of assets and liabilities resolutions associated with the offer and the merger. For technical reasons,

the transactions were completed sequentially with some days in between. For accounting purposes,

the total consideration for the offer and the merger was the basis for the purchase price allocation.

The fair values of the identifiable assets and liabilities of NTS Group and NRS Group as at the date of

acquisition and merger was as follows:

Acquisition's effect on the

	Fair value recognised
balance sheet (NOK 1,000)	on acquisition
Assets
Licences	7,265,892
Property, plant & equipment	12,485,211
Right-of-use assets	1,058,557
Biological assets and other inventory	3,488,894
Investment in associates	1,145,505
Investment in SalMar shares (treasury shares)	4,512,870
Other financial investments	2,025,600
Trade receivables and other current receivables	824,274
Cash and cash equivalents	3,296,943
Total identifiable assets at fair value	36,103,746
Liabilities
Deferred tax liabilities	2,209,785
Interest-bearing liabilities	14,199,097
Trade payables	1,085,716
Other current liabilities	416,228
Total identifiable liabilities at fair value	17,910,826
Total identifiable net assets at fair value	18,192,920
Non-controlling interest measured at fair value	-6,268,346
Goodwill	2,085,214
Total consideration	14,009,788

Purchase consideration	Acquisition NTS	Merger NRS	Total
Shares issued	3,214,959	5,883,871	9,098,830
Cash consideration	1,807,393	3,103,565	4,910,958
Total consideration	5,022,352	8,987,436	14,009,788

Financial Statement and Results Notes to the Financial Statements for 2023

174

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.5 Business combinations

The goodwill of NOK 2,085 million comprises both of the value of expected synergies arising from

the acquisition which is not separately recognised with NOK 1,296 million, and technical goodwill of

NOK 789 million recognised due to deferred tax on the excess value identified for licences computed

with statutory tax rate in Norway of 22 %. Goodwill is allocated to the segments Farming Central Norway

and Farming Northern Norway. Goodwill is not deductible for income tax purposes.

From the date of acquisition the companies in NTS and NRS contributed NOK 1,405.1 million of revenue

and a operational EBIT with NOK 208.9 million. The profit before tax from continuing operations of the

Group has been negatively affected with NOK 188.3 million from the acquired companies in the period.

If the combination had taken place at the beginning of the year, revenue from continuing operations

would have been NOK 26,702.8 million, operational EBIT NOK 5,067.7 million and profit before tax from

continuing operations for the Group would have been NOK 5,864.8 million.

Eldisstødin Isthor Ehf (Isthor)

With effect from 17 August 2022, the Group acquired 50 % of the shares in the smolt facility Isthor in

Iceland. The transaction was approved by the Icelandic Competition Authorities. Prior to the transaction

SalMar Group indirectly owned 25.51 % of the shares in Isthor through SalMars 51.02 % ownership in

Icelandic Salmon AS. Icelandic Salmon AS owns 100 % of the shares in Arnarlax Ehf, which owns the

shares in Isthor. After the transaction, Arnarlax Ehf owns 100 % of the shares in Isthor.

The Group's holdings prior to the acquisition date, was remeasured at fair value at the time control was

obtained. The fair value of the equity interest was NOK 107.2 million, and a gain of NOK 90.8 million

was in 2022 recognised as other financial items in the profit or loss.

After the transaction the Group owns 100 % of the shares in Isthor. The purpose of the transaction

was to increase the flexibility in size of smolt and increased number of smolt supporting the compa-

ny's growth plans. For accounting purposes, the transaction are treated as a business combination with

effect from the acquisition date. No material external transaction costs were incurred in the connection

with the acquisition.

As part of the acquisition agreement, the Group repaid to the former owners a liability amounting to

NOK 43.4 million.

The fair values of the identifiable assets and liabilities of Isthor as at the date of acquisition was as follows:

Acquisition's effect on the
balance sheet (NOK 1,000)	Fair value recognised on acquisition
Property, plant & equipment	196,657
Current assets	533
Deferred tax	-12,307
Non-current liabilities	-48,576
Other current liabilities	-14,105
Net identifiable assets and liabilities	122,201
Goodwill	155,952
Fair value of intercompany long-term liability	-63,806
Fair value of the investment at the time of acquisition	-107,174
Cash consideration	107,173

Financial Statement and Results Notes to the Financial Statements for 2023

175

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.6 Non-controlling interests

NOTE 4.6 Non-controlling interests

Non-controlling interests relating to subsidiaries

			Non-controlling
			interests
		Non-controlling	from business					Non-controlling
		Non-controlling interests accumulated	combination and	Share of profit		Equity transactions		interests accumulated
	interests	share of equity	other investments	allocated to non-	OCI allocated to non-	allocated to non-	Other changes in non-	share of equity
31 December 2023	shareholding	1 Jan	in group companies	controlling interests	controlling interests	controlling interests	controlling interests	31 Dec
Øylaks MTB AS	51.00 %	0	130,377	6,891	0	-5	0	137,263
Refsnes Laks AS	55.00 %	864,892	0	4,119	0	-50,050	0	818,961
Nekton Havbruk AS	49.00 %	101,973	0	14,166	0	-14,210	0	101,929
SalMar Aker Ocean AS	15.00 %	224,866	0	448	0	-2,029	206,246	429,531
Icelandic Salmon AS	47.52 %	1,210,182	0	49,172	84,595	656	-38,791	1,305,814
Hitramat Farming AS	49.00 %	54,214	0	11,185	0	-15,460	0	49,940
Vikenco AS	49.00 %	163,472	0	48,479	37,021	-39,216	0	209,756
NTS AS	0.00 %	64,139	0	0	0	0	-64,139	0
Frøy AS	0.00 %	1,974,134	0	81,283	0	-17,925	-2,037,492	0
Osan Settefisk AS	34.00 %	53,607	0	7,107	0	8	0	60,723
Nor Seafood AS	17.51 %	88,288	0	-4,382	0	0	0	83,907
SalmoSea AS	25.69 %	-971	0	-19,046	0	0	0	-20,017
		4,798,794	130,377	199,423	121,615	-138,232	-1,934,176	3,177,806

Arctic Offshore Farming AS

With effect from 29 November 2023, the 100 per cent owned company Arctic Offshore Farming AS was

sold from SalMar ASA to the 85 per cent owned subsidiary SalMar Aker Ocean AS. The transaction was

part of the group's internal reorganization to consolidate the group's offshore investment under SalMar

Aker Ocean. Apart from reallocation in equity where non-controlling ownership interests increases by

NOK 206.2 million, the transaction has no accounting consequences for SalMar Group. The increase is

recognised in the equity as a change in non-controlling interests, and where the equity attributable to

shareholders of the parent are reduced accordingly.

Øylaks MTB AS

Through the acquisition of Øylaks MTB AS the non-controlling interest in the Group increased with

NOK 130.4 million. The non-controlling interest are assessed at fair value and for accounting purposes

recognised directly to equity. See Note 4.5 for further information.

Icelandic Salmon AS

On 11 November 2023 SalMar ASA has acquired a total for 450,000 shares in Icelandic Salmon AS priced

at NOK 187 per share. Through the transaction SalMar increased its shareholding in the company from

51.02 per cent to 52.48 per cent. For accounting purposes, the transaction has been recognised as

a change in non-controlling interests, with the NOK 84.15 million effect recognised directly to equity.

Of the total amount of NOK 84.15, NOK 38.8 have an effect on non-controlling interest.

176

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.6 Non-controlling interests

NTS

Following the completion of the mandatory offer for to acquire all

shares in NTS in December 2022, SalMar owned 92.93 per cent

of the shares in the company. On 3 January 2023 SalMar publicly

announced that they resolved to carry out a compulsory acquisition

of all remaining shares in the company not owned by SalMar and with

effect from 3 January 2023, SalMar became 100 per cent owner of

all shares in NTS. The total consideration for the remaining shares

was NOK 674.3 million. For accounting purposes, the effect of the

transaction is recognised directly to equity. Of the total amount of

NOK 674.3, NOK 683.5 have an effect on non-controlling interest.

As a consequence of the transaction the non-controlling interest

related to treasury shares owned by NTS amounting to NOK 319.2 mil-

lion has reduced the equity attributable to shareholders in SalMar

accordingly.

Certain former minority shareholders that were subject to the com-

	Frøy
	On 14 August 2023 the sale of SalMar's entire ownership stake in
	Frøy AS, representing approximately 72.11 per cent of the shares in
	the company, was completed. As a consequence of the transaction,
	the non-controlling interest in Frøy AS, amounting to NOK 1,737.2 mil-
pulsory acquisition have made a formal complaint and initiated legal
proceedings about the redemption sum.

lion, was derecognised at the time of the transaction. For accounting

purposes, the effect of the transaction is recognised directly to the

equity in the period. For further information, see note 4.7.

		Non-controlling						Non-controlling
		Non-controlling interests accumulated	Non-controlling	Share of profit		Equity transactions		interests accumulated
	interests	share of equity	interests from	allocated to non-	OCI allocated to non-	allocated to non-	Other changes in non-	share of equity
31 December 2022	shareholding	1 Jan	business combination	controlling interests	controlling interests	controlling interests	controlling interests	31 Dec
Refsnes Laks AS	55.00 %	823,237	0	63,655	0	-22,000	0	864,892
Nekton Havbruk AS	49.00 %	84,115	0	17,858	0	0	0	101,973
SalMar Aker Ocean AS	15.00 %	238,830	0	-17,390	0	3,426	0	224,866
Icelandic Salmon AS	48.98 %	960,678	0	188,180	61,143	181	0	1,210,182
Hitramat Farming AS	49.00 %	48,543	0	15,471	0	-9,800	0	54,214
Vikenco AS	49.00 %	97,425	0	71,223	14,424	-19,600	0	163,472
NTS ASA	7.07 %	0	2,534,089	3,231	0	-319,060	-2,154,122	64,139
Frøy ASA	32.99 %	0	3,588,977	65,583	-1,613	0	-1,678,813	1,974,134
Osan Settefisk AS	34.00 %	0	54,756	-1,149	0	0	0	53,607
Nor Seafood AS	17.51 %	0	91,368	-3,080	0	0	0	88,288
SalmoSea AS	25.69 %	0	-843	-128	0	0	0	-971
		2,252,827	6,268,346	403,453	73,953	-366,854	-3,832,936	4,798,794

177

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.6 Non-controlling interests

Acquisition and merger of NTS and NRS

Through the acquisition and merger of NTS and NRS non-controlling

interest in the Group increased with NOK 6,268.3 million. The increase

in non-controlling interest consists of interests in NTS ASA, Frøy ASA,

Osan Settefisk AS, Nor Seafood AS and SalmoSea AS.

At the time of acquisition through the voluntary offer of NTS, SalMar

acquired 52.69 per cent of the shares in the NTS. Through the merger

between SalMar and NRS, became an owner of 13,697,303 SalMar

share with at total value of MNOK 4,513 million at the time of the

merger. The shares are treated as treasury shares in the SalMar group,

where NOK 2,378 million reduces the equity attributable to share-

holders in SalMar, and NOK 2,135 reduces the non-controlling interest

at the date of acquisition.

On 22 November 2022 SalMar announced that the settlement of

the voluntary offer of NTS triggered an obligation to make a man-

datory offer for all the remaining shares in NTS. With effect from 29

December 2022, the mandatory offer was completed. SalMar acquired

additional 40.24 per cent of the shares in the company and owned

92.93 per cent of the shares in NTS after completion of the offer. The

total consideration for the remaining shares was NOK 3,819 million.

For accounting purposes, the effect of the transaction was recognised

directly to equity in the period. The non-controlling interest related

to treasury shares owned by NTS was reduced by NOK 1,816 million

during the transaction and the equity attributable to shareholders in

SalMar was reduced accordingly. On 31 December 2022 the non-con-

trolling interest related to the treasury shares in NTS were reduced

to NOK 319 million.

At the time of acquisition NTS owned 72.11 per cent of the shares

in Frøy which resulted in an indirect non-controlling interest of 62.01

per cent in the company. The acquisition of further 40.24 per cent of

the shares in NTS, reduced the indirect non-controlling interest in Frøy

to 32.99 per cent. Of the total consideration of NOK 3,836 million for

40.24 per cent of the NTS shares, MNOK 2,154 million reduced the

non-controlling interest in NTS and MNOK 1,679 million reduced the

non-controlling interest in Frøy.

Mariculture AS

With effect from 19 April 2022, SalMar Group has acquired 49 % of

the shares in Mariculture AS. Mariculture AS is a subsidiary of SalMar

Aker Ocean AS, which is owned 85.0 per cent of SalMar Group. After

the transaction SalMar Aker Ocean AS owns 100.0 per cent of the

shares in Mariculture AS. For accounting purposes, the effect of the

transaction is recognised directly to equity in the period.

178

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.6 Non-controlling interests

Subsidiaries with material non-controlling interests:

The Group considers non-controlling interests in Icelandic Salmon Group, Refsnes Laks AS and SalMar Aker Ocean Group to be material. Further details relating to this companies are disclosed below.

Frøy AS, with a material non-controlling interest, was classified as held for sale on 31 December 2022, and was subsequently sold during 2023. For further information relating to Frøy, see note 4.7 Discontinued Operations.

			Icelandic
	SalMar Aker	Refsnes	Salmon
	Ocean Group	Laks AS	Group
NOK 1,000	2023	2023	2023
Income statement
Operating revenues	172,891	636,642	1,871,256
Net profit/loss	-72,079	7,490	97,280
OCI	0	0	167,996
Total comprehensive income	-72,079	7,490	265,276
Total comprehensive income allocated	448	4,119	133,767
to non-controlling interests
Dividend paid to non-controlling interests	0	-50,050	0
Statement of financial position as at 31 December
Non-current assets	2,946,372	179,573	1,632,360
Current assets	712,843	424,723	1,096,581
Equity	1,927,920	264,869	1,764,555
Non-current liabilities	1,481,323	144,953	704,608
Current liabilities	249,972	194,473	259,777
Recognised excess value of licences	938,993	1,224,151	977,132
and goodwill - net after tax
Share of equity allocated to shareholders of SalMar ASA	2,437,382	670,059	1,435,873
Share of equity allocated to non-controlling interests	429,531	818,961	1,305,814
Cash flows
From operating activities	-350,577	331,980	418,415
From investing activities	-145,409	-36,074	-293,295
From financing activities	195,431	-59,459	-22,101
Net increase/decrease in cash and cash equivalents	-300,555	236,447	103,019

			Icelandic
	SalMar Aker	Refsnes	Salmon
	Ocean Group	Laks AS	Group
NOK 1,000	2022	2022	2022
Income statement
Operating revenues	32,460	481,065	1,595,176
Net profit/loss	-115,931	115,736	382,821
OCI	0	0	124,980
Total comprehensive income	-115,931	115,736	507,801
Total comprehensive income allocated	-17,390	63,655	249,323
to non-controlling interests
Dividend paid to non-controlling interests	0	-22,000	0
Statement of financial position as at 31 December
Non-current assets	2,111,421	165,549	1,349,386
Current assets	500,039	341,076	1,161,909
Equity	1,498,137	333,123	1,557,542
Non-current liabilities	997,611	87,277	643,486
Current liabilities	115,713	86,225	310,267
Recognised excess value of licences - net after tax	0	1,238,690	913,155
Share of equity allocated to shareholders of SalMar ASA	1,273,271	706,921	1,260,516
Share of equity allocated to non-controlling interests	224,866	864,892	1,210,182
Cash flows
From operating activities	-7,797	96,231	152,550
From investing activities	-398,640	-40,441	-285,624
From financing activities	203,557	-55,294	116,279
Net increase/decrease in cash and cash equivalents	-202,881	496	-16,795

179

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.7 Discontinued operations

NOTE 4.7 Discontinued operations

Accounting policies

The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts

will be recovered principally through a sale transaction rather than through continuing use. Non-current

assets and disposal groups classified as held for sale are measured at the lower of their carrying amount

and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal

of an asset (disposal group), excluding finance costs and income tax expense

Through the acquisition of NTS in 2022, Frøy AS became a subsidiary of the SalMar group. SalMar owned

100 per cent of the shares in NTS, which owned 72.11 per cent of the shares in Frøy AS. On 13 January

2023, SalMar announced that, based on incoming interest regarding Frøy AS, the group decided to explore

strategic alternatives with the aim of maximizing value for its shareholders. On 14 August 2023, it was

announced that a transaction between NTS AS, Falcon Bidco AS, a company indirectly wholly owned

by infrastructure funds managed by Goldman Sachs Asset Management, and Frøy AS was completed.

Falcon Bidco AS acquired NTS' entire ownership stake in Frøy, and a cash consideration of NOK 76.50

per share was paid in the transaction, with proceeds from the sale amounting to NOK 4,764 million.

Following the decision made by the SalMar board in December 2022 to explore the strategic alterna-

tives, Frøy AS was classified as a disposal group held for sale and as a discontinued operation from the

completion of the voluntary offer of all outstanding shares in NTS AS with effect from 1 November

2022, until the completion of the transaction 14 August 2023.

The cash consideration from the sale of Frøy AS amounted to NOK 4,764 million. Cash in Frøy at the

time of the transaction amounted to NOK 364 million. Total proceeds from the sale of Frøy AS net of

cash amounted to NOK 4,400 million.

Closing of the transaction where Frøy AS acquired 100 % of the shares of Marinus Aquaservice AS took

place beginning of April and Marinus is included in Frøy AS's consolidated accounts from 01.04.2023.

	01.01.2023–	01.11.2022–
	14.08.2023	31.12.2022
Total operating revenues	1,227,552	379,102
Cost of goods sold	252,411	86,160
Salary and personnel expenses	402,026	111,174
Other operating expenses	234,441	71,121
EBITDA	338,674	110,647
Operating profit	338,674	110,647
Income from investments in associates and joint ventures	7,381	912
Net interest expenses	-85,784	-14,811
Other financial items	59,142	-5,649
Profit from discontinued operation before tax	319,414	91,098
Income tax expense from the ordinary activities for the period	27,973	-16,273
Profit for the period from discontinued operations	291,440	107,372
Profit for the period from discontinued	365,154	0
operations, gain from sale
Total profit from discontinued operations	656,594	107,372
Other comprehensive income:
Items that may be reclassified to profit
or loss in subsequent periods:
Change in fair value of financial instruments, net after tax	0	-4,889
Total comprehensive income from discontinued operations	656,594	102,483
Profit for the period from discontinued operations	575,311	65,583
attributable to equity holders of SalMar ASA
Earnings per share
Diluted profit for the period from discontinued operations	4.37	0.52
Profit for the period from discontinued operations	4.38	0.52

180

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.7 Discontinued operations

The major classes of assets and liabilities of Frøy AS as held for sale as at year end 2022 were as follows:

ASSETS	31.12.2022
Non-current tangible assets	10,201,182
Right-of-use assets	489,144
Non-current financial assets	120,194
Total non-current assets	10,810,520
Inventory	14,966
Trade receivables	256,621
Other current receivables	70,997
Cash and cash equivalents	318,705
Total current assets	661,289
TOTAL ASSETS	11,471,809
LIABILITIES
Deferred tax liability	919,073
Non-current interest-bearing liabilities	3,608,202
Non-current lease liabilities	314,340
Total non-current liabilities	4,841,615
Current interest-bearing liabilities	515,059
Current lease liabilities	91,177
Other current liabilities	164,594
Total current liabilities	770,830
TOTAL LIABILITIES	5,612,445

181

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.8 Related party transactions

NOTE 4.8 Related party transactions

The group's parent company is SalMar ASA. The ultimate parent company is Kvarv AS, which indirectly through the Kverva group based on a quali-

tative assessment, is considered to have power over the company. There are several factors that support the conclusion, including the dispersed

ownership of the remaining shares in SalMar ASA. See note 4.2 for further details.

Transactions with related parties in 2023 (NOK 1,000)	Sales	Purchases	Receivables	Liabilities
Associates of the SalMar Group	303,535	85,543	10,112	45
Companies controlled by the parent company Kverva AS	2,286,780	569,302	180,147	20,018
Associates of the parent company Kverva AS	84,226	26,954	20,118	1,225
Transactions with related parties in 2022 (NOK 1,000)	Sales	Purchases	Receivables	Liabilities
Associates of the SalMar Group	215,388	100,735	30,428	10,990
Companies controlled by the parent company Kverva AS	2,060,367	455,541	248,893	16,929
Associates of the parent company Kverva AS	56,183	22,296	3,135	9

Transactions between the Group and related parties are undertaken at market terms and conditions. In addition, dividends have been received

from associates (see Note 3.5), while benefits have been paid to members of the Board and senior executives (see Note 2.3).

182

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.9 Climate risk

NOTE 4.9 Climate risk

In 2023, SalMar conducted its annual assessment of climate risk

for all its operations across the value chain from roe to plate and

accompanying suppliers to the value chain. The assessment is aligned

with the Task Force on Climate-related Financial Disclosures (TCFD)

framework and evaluates both risks and opportunities and associated

physical and transitional implications to SalMar’s financial position.

Some key findings include:

• SalMar’s assets running on fossil fuels, e.g., work boats,

company cars, etc. are sensitive to SalMar’s climate

ambitions and external pressure to quickly transition to

zero-emission fuels.

• Carbon taxation could have material financial

implications on SalMar if introduced on imported and/or

exported products.

• Increased frequency of acute physical events like

heatwaves and floods can affect the crops necessary

to grow some of SalMar's feed ingredients. Reduced

availability of feed ingredients contributes to increased

costs on what is already SalMar's largest operational

expenditure.

• The low carbon footprint of salmon farming relative to

other protein sources puts salmon in pole position to

withstand CO2-efficiency regulations and presents an

attractive option for climate-aware consumers. Central

bodies like the Food and Agriculture Organization of the

United Nations (FAO) states that the seafood industry will

play an important role in achieving the UN's Sustainable

Development Goals, given its high nutritional output and

low footprint.

In conclusion, there are currently no indicators of potential climate risks

having a material impact of the carrying amount of SalMar's assets, or

have material impact on SalMar's activities and the expected future

cash flows. However, this remains an important matter to continue

to assess in the coming years.

NOTE 4.10 Allegations of price collusion and events occurring after the reporting period

On 6 February 2019, the European Commission launched an investiga-

tion of the SalMar ASA and several other producers of farmed Norwe-

gian Atlantic salmon, concerning alleged anti-competitive conduct. Per

31 December 2023 the investigation was ongoing and SalMar did not

have insight in the European Commission's view. On 25 January 2024

the European Commission issued a Statement of Objections in the

case. The Commission's preliminary assessment is that there may have

occurred a breach of EU competition law in the period 2011–2019,

related to spot sales into the EU of fresh, whole salmon farmed in

Norway. The Statement of Objections does not include calculation of

a potential fine. SalMar's potential economic liability therefore remains

uncertain. SalMar strongly disagrees with the Commission's preliminary

assessment and is accounting for SalMar's view in a thorough reply

to the Commission.

Following the European Commission's investigation, complaints were

filed against SalMar ASA, as one of several Norwegian salmon pro-

ducers, before a Federal Court in Toronto on 11 October 2019 and

3 January 2020. The cases were consolidated. Lawsuits were also

filed before local courts in Vancouver and in Quebec but put on hold

pending a decision in the Federal Court. The cases all concern the

same allegation of anti-competitive conduct. In 2023 SalMar entered

a collective settlement agreement, which was finally approved by the

Federal Court 9 February 2024. The settlement was entered purely

for commercial reasons and due to the costs associated with litigation.

The settlement effectively concludes the Canadian lawsuits.

In addition, in February 2024 a group of UK supermarkets issued claims

for damages against SalMar ASA as one of several salmon producers,

alleging anti-competitive conduct. SalMar rejects these allegations

and strongly believes that the claims lack merit. The case is in an early

phase and SalMar understands that the claims have been issued at

this stage to interrupt a limitation period. SalMar will take appropriate

measures in following up and defending the claims.

183

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.11 Alternative performance measures

NOTE 4.11 Alternative performance measures

The SalMar Group prepares its financial statements in accordance with International Financial Reporting

Standards (IFRS). In addition, management has established alternative performance measures (APMs)

to provide useful and relevant information to users of the financial statements. APMs have been estab-

lished to provide greater understanding of the company's underlying performance, and do not replace

the consolidated financial statement prepared in accordance with IFRS. The performance parameters

have been reviewed and approved by the Group's management and Board of Directors. APMs may be

defined and used in other ways by other companies.

The APMs are deduced from the performance measures defined in IFRS. The figures are defined below

and calculated in a consistent manner. They are presented in addition to other performance measures,

in keeping with the Guidelines on Alternative Performance Measures issued by the European Securities

and Markets Authority (ESMA).

Operational EBIT

Operational EBIT is an APM used by the Group. The relationship between Operational EBIT and operating

profit/loss is presented in the table below. The difference between Operational EBIT and operating profit/

loss relates to provisions for production tax and onerous contracts, and items which are classified in the

financial statements on the line for fair value adjustments. These items are market value and fair value

assessments linked to assumptions about the future. Operational EBIT shows the underlying operation

and the results of transactions undertaken in the period.

NOK 1,000	2023	2022
Operating profit/loss	8,509,224	4,738,158
Production tax	208,374	85,232
Onerous contracts	237,346	-126,330
Fair value adjustment:
Change in fair value of the biological assets	-1,571,116	-446,150
Change in fair value adjustment due to business	722,809	283,398
combination - included in cost of goods sold
Change in unrealised Fish Pool contracts	-18,737	-69,737
Operational EBIT	8,087,900	4,464,571

Operational EBITDA

Operational EBITDA is another alternative performance measure used by the Group. EBITDA is opera-

tional EBIT plus depreciation, write-downs and amortization.

NOK 1,000	2023	2022
Operational EBIT	8,087,900	4,464,571
Depreciation and write-downs	1,452,230	1,037,695
Operational EBITDA	9,540,130	5,502,266

Operational EBIT/kg gw and Operational EBITDA/kg gw

Operational EBITDA and operational EBIT per kg gutted weight is defined as a key performance

parameter for SalMar. The performance parameter is used to assess the profitability of the goods

sold and the Group's operations. The performance parameter is expressed per kg of harvested volume.

	Fish	Fish
	Farming	Farming
	Central	Northern	Icelandic	SalMar	SalMar
2023	Norway	Norway	Salmon	Aker Ocean	Group
Volume harvested (tonnes)	141,139	92,777	17,919	2,267	254,102
Operational EBITDA (NOK 1,000)	5,269,225	3,764,615	333,360	17,522	9,540,130
EBITDA/kg gw (NOK)	37.3	40.6	18.6	7.7	37.5
Operational EBIT (NOK 1,000)	4,612,426	3,402,021	230,199	-52,572	8,087,900
EBIT/kg gw (NOK)	32.7	36.7	12.8	-23.2	31.8
	Fish	Fish
	Farming	Farming
	Central	Northern	Icelandic	SalMar	SalMar
2022	Norway	Norway	Salmon	Aker Ocean	Group
Volume harvested (tonnes)	114,139	63,392	16,139	0	193,670
Operational EBITDA (NOK 1,000)	4,082,088	2,712,226	441,415	-48,708	5,502,266
EBITDA/kg gw (NOK)	35.8	42.8	27.4	0	28.4
Operational EBIT (NOK 1,000)	3,599,217	2,525,754	365,943	-154,769	4,464,571
EBIT/kg gw (NOK)	31.5	39.8	22.7	0	23.1

184

Financial Statement and Results Notes to the Financial Statements for 2023

Financial Statement and Results Notes to the Financial Statements for 2023 Note 4.11 Alternative performance measures

Net interest-bearing debt (NIBD) and net interest-bearing debt including

leasing liabilities

Net interest-bearing debt is an alternative performance measure used by the Group. The performance

measure is used to express the Group's working capital and is an important performance measure for

investors and other users, because it the shows net borrowed capital used to finance the Group. Net

interest-bearing debt is defined as long-term and short-term debt to credit institutions, less cash

& cash equivalents. Leasing liabilities under IFRS 16 are not included in the calculation of net inter-

est-bearing debt. To highlight total interest bearing debt including leasing liabilities, this is presented

as a separate measure.

NOK 1,000	31.12.2023	31.12.2022
Long-term debt to credit institutions	12,211,226	18,349,972
Short-term debt to credit institutions	1,680,742	3,442,121
Cash & cash equivalents	-785,271	-2,712,707
Net interest-bearing debt (NIBD)	13,106,697	19,079,386
Lease liabilities	1,845,494	1,425,297
NIBD incl. lease liabilities	14,952,191	20,504,683

Cash flow per share - diluted

NOK 1,000	2023	2022
Cash flow from operating activities	8,975,477	4,222,818
Average no. of shares outstanding (diluted)	131,633	119,979
in the period (1,000 shares)
Diluted cash flow per share (NOK)	68.19	35.20

NIBD incl. lease liabilities / EBITDA

NIBD incl. lease liabilities / EBITDA is an APM used by the Group to measure leverage. The figure is arrived

at by dividing NIBD incl. lease liabilities at the end of the period with EBITDA for the last 12 months.

Adjusted earnings per share

The Group uses adjusted earnings per share to reflect earnings excluding implementa-

tion effect resource rent tax and net fair value adjustments. The key figure is arrived at by

dividing the profit for the period adjusted for onerous contracts, fair value adjustments and

changes in deferred taxes by the average number of shares outstanding (diluted) in the period.

NOK 1,000	2023	2022
Profit for the period attributable to shareholders in SalMar ASA	3,202,756	3,311,955
Onerous contracts *)	237,346	-126,330
Fair value adjustment *)	-1,589,853	-515,887
Fair value adjustment included in cost of goods	722,809	283,398
sold due to business combination *)
Calculated tax effect of adjustments **)	-243,361	78,940
Resource rent tax - implementation effect (deferred tax) *)	2,079,987	0
Adjusted profit for the period attributable to shareholders in SalMar ASA *)	4,409,683	3,032,076
Average no. of shares outstanding (diluted)	131,633	119,979
in the period (1,000 shares)
Adjusted earnings per share	33.50	25.27

*) The adjustments made to the profit for the period attributable to shareholders in SalMar ASA in the

table above, are inclusive of non-controlling interest.

**) Calculated tax rate 22 % for Onerous contracts, Fair value adjustment and Fair value adjustment

included in cost of goods sold due to business combination. For 2023 the calculated change in deferred

resource rent tax on fair value adjustment has been added.

185

Financial Statement and Results Annual Financial Statements of SalMarASA

Financial Statement and Results Annual Financial Statements of SalMarASA Note 4.11 Alternative performance measures

Annual Financial Statements of SalMarASA

2023

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

186

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

Annual Financial

Statements

SalMarASA

2023

Statement of Profit or Loss

NOK1,000

Operating revenue and expenses Note 2023 2022

Operating revenue 2, 7 836,826 1,487,791

Total operating revenue 836,826 1,487,791

Cost of goods sold 7 -419,990 -1,409,110

Salary and personnel expenses 3, 4 -129,058 -94,044

Depreciation and amortisation 9, 10 -9,537 -4,887

Write-downs 10 -1,090 0

Other operating expenses 5, 7 -119,907 -285,712

Total operating expenses -679,583 -1,793,753

Operating profit/ loss 157,243 -305,962

Financial items

Income from investments in group companies 6, 7 4,944,737 3,031,955

Income from investments in associated companies 6 10,060 0

Interest income 6, 7 1,212,624 358,143

Interest expenses 6, 7 -1,250,567 -302,741

Other financial items 6 -128,300 85,053

Net financial items 4,788,553 3,172,409

Profit before tax 4,945,797 2,866,448

Income tax expense 8 -903,735 -81,377

Profit for the year 4,042,062 2,785,071

Allocated to:

Dividend 18 4,611,602 2,628,653

Transferred from (-) /to(+) retained earnings 1,983,803 156,417

Transferred from (-) /to(+) other paid-in equity -392,468 0

Transferred from (-) /to(+) share premium -2,160,876 0

Total allocated 4,042,062 2,785,071

187

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

Balance Sheet

NOK1,000

Assets Note 31.12.2023 31.12.2022

Non-current assets

Intangible assets 9 11,182 14,040

Property, plant and equipment 10 35,146 8,868

Investments in subsidiaries 11 6,763,064 13,772,615

Investments in associates and joint ventures 12 1,452,136 1,447,287

Intercompany non-current receivables 13 16,501,597 13,805,920

Other non-current receivables 14, 15 145,086 266,182

Other non-current financial assets 2,065 152

Total non-current assets 24,910,277 29,315,064

Current assets

Inventory 0 100,605

Trade receivables 16 4,870 281,295

Intercompany current receivables 13 4,852,636 6,260,987

Other current receivables 56,265 24,926

Other financial instruments 15 0 9,792

Cash and cash equivalents 17 15,557 1,411,280

Total current assets 4,929,328 8,088,886

Total assets 29,839,605 37,403,949

188

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

Balance Sheet (continued)

NOK1,000

Equity and liabilities Note 31.12.2023 31.12.2022

Equity

Share capital 18 33,010 36,285

Treasury shares -70 -4

Share premium 10,016,688 12,182,189

Other paid-in equity 0 343,902

Total paid-in equity 10,049,628 12,562,373

Retained Earnings 0 2,336,919

Total retained earnings 0 2,336,919

Total equity 10,049,628 14,899,292

Non-current liabilities

Pension liabilities 4 0 10,161

Deferred tax liabilities 8 41,204 56,561

Non-current financial liabilities 15 12,898 0

Non-current interest bearing debt 19, 20 11,111,053 17,267,373

Total non-current liabilities 11,165,156 17,334,094

Current liabilities

Current interest bearing debt 19, 20 1,043,816 423,354

Trade payables 12,174 414,137

Tax payable 8 919,410 0

Dividend 18 4,611,602 2,628,653

Public duties payable 20,229 55,945

Intercompany current liabilities 13 1,941,307 1,375,382

Other current liabilities 76,283 273,092

Total current liabilities 8,624,820 5,170,563

Total liabilities 19,789,977 22,504,658

Total Equity and Liabilities 29,839,605 37,403,949

Frøya, 12 April 2024

Gustav Witzøe

Chair of the Board

Margrethe Hauge

Vice-Chair of the Board

Morten Loktu

Board Member

Arnhild Holstad

Board Member

Leif Inge Nordhammer

Board Member

Ingvild Kindlihagen

Board Member

Employee representative

Frode Arntsen

CEO

Hans Stølan

Board Member

Employee representative

189

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

NOK 1,000 Note Share capital Treasury shares Share premium

Other paid-in

equity Retained Earnings Total equity

Equity 31.12.2022 36,285 -4 12,182,189 343,902 2,336,919 14,899,292

Profit for the year 0 0 -2,160,876 -392,468 6,595,406 4,042,062

Gain on cash flow hedges, net of tax 15 0 0 0 0 4,033 4,033

Dividend 18 0 0 0 0 -4,611,602 -4,611,602

Merger with NTS AS - effect of treasury shares 21 0 -3,423 0 0 -4,509,447 -4,512,870

Merger with NTS AS 21 0 0 0 0 55,412 55,412

Share capital reduction 21 -3,275 3,275 0 0 0 0

Sales of treasury shares 0 8 -4,626 0 16,163 11,544

Acquisition of shares with settlement in treasury shares 0 52 0 4,073 112,763 116,888

Share-based payment, release 3 0 22 0 -22 0 0

Share-based payment, expensed 3 0 0 0 43,750 0 43,750

Share-based payment, tax effect 3 0 0 0 765 0 765

Remeasurement gain/ loss on defined benefit plans, net of tax 4 0 0 0 0 552 552

Other changes 0 0 0 0 -199 -199

Equity 31.12.2023 33,010 -70 10,016,688 0 0 10,049,628

Statement of changes in equity

NOK 1,000

SalMarASA was merged with NTSAS with effect from 13 Decem-

ber2023. For accounting purposes, the merger is accounted for with

group continuity with effect from 1 January 2023. See Note 21 for

further details.

See Note 18 for information regarding share capital reduction and

dividend in the year.

See Note 15 for further information regarding cash flow hedges.

A share-based remuneration scheme has been established for senior

executives and other key personnel. See Note 3 for further details.

With effect from 28 December2023, SalMar FarmingAS acquired

49percent of the shares in Øylaks MTBAS. The consideration for the

49percent interest was partially settled with shares from SalMarASA,

a total of 209,402 shares valued at NOK116.9million. A total of

NOK116.9million are recognised as intercompany non-current receiv-

ables against SalMar FarmingAS. See further information in Note 13.

190

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

Statement of Cash flows

NOK 1,000

NOK 1,000 Note 2023 2022

Cash flows from operating activities

Profit before tax 4,945,797 2,866,448

Tax paid in the period 8 0 -493,505

Tax paid in the period from merged company 8 -84,462 0

Income from investments in group companies 6 -4,944,737 -3,031,955

Income from investments in associated companies 6 -10,060 0

Net interest expenses 6 37,943 -55,402

Depreciation and amortisation 9, 10 9,537 4,887

Write-downs 10 1,090 0

Gains/losses on sale of non-current assets -701 0

Share-based payment, expensed 3 8,774 8,700

Change in trade receivables 13 -109,149 -61,552

Change in trade payables 13 -161,099 -200,138

Change in inventory 100,605 42,111

Change in other accruals -149,879 -37,604

Net cash flows from operating activities -356,340 -958,010

Cash flows from investing activities

Receipts from disposal of property, plant and equipment 10 3,383 0

Purchase of property, plant & equipment 10 -997 -1,881

Purchase of intangible assets 9 -1,630 -9,209

Net payments related to loans to others 33,002 0

Net payments related to loans to group companies 7 1,626,341 -1,856,642

Receipts of group contributions and dividends from subsidiaries 7 3,639,639 2,371,315

Receipts of dividends from associated companies 6 10,060 0

Receipts from disposal of other investments 22 4,744,886 1,859,913

Cash consideration related to merger, net of cash 21 108,488 -3,128,248

Payments for other investments in subsidiaries 11, 21 -758,474 -5,667,573

Increase of share capital in group companies 22 -1,114,069 -55,000

Net interest income from group companies 6 867,168 308,621

Other interest income related to investment activities 1,272 1

Net cash flows from investing activities 9,159,069 -6,178,702

191

Financial Statement and Results Annual Financial Statements of SalMarASA Financial Statement and Results Annual Financial Statements of SalMarASA

NOK 1,000 Note 2023 2022

Cash flows from financing activities

Repayments on long-term debts -14,510,119 -158,835

Proceeds from long-term debts 7,198,786 11,334,168

Change in overdraft facility 620,462 -107,509

Contributions of equity net of transaction cost 0 -305

Dividend paid 18 -2,628,653 -2,353,953

Interest paid 6 -878,929 -177,275

Net cash flows from financing activities -10,198,453 8,536,292

Net change in cash and cash equivalents -1,395,723 1,399,579

Cash and cash equivalents 01.01 1,411,280 10,814

Cash and cash equivalents 31.12 15 15,557 1,410,394

Unused drawing rights 19 8,819,806 6,900,000

Statement of Cash flows, continued

NOK 1,000

192

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASAFinancial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Notes to the Financial Statements for 2023, SalMarASA

Note 1 General information and accounting policies 187

Note 2 Operating revenue 189

Note 3 Salary and personnel expenses 190

Note 4 Pension cost 190

Note 5 Auditors fees 191

Note 6 Financial items 191

Note 7 Intercompany transactions – revenue and cost 192

Note 8 Tax 192

Note 9 Intangible assets 193

Note 10 Property, plant and equipment 194

Note 11 Subsidiaries 195

Note 12 Associates and joint ventures 195

Note 13 Intercompany transactions - receivables and liabilities 196

Note 14 Other non-current receivables 196

Note 15 Derivatives 196

Note 16 Trade and other receivables 198

Note 17 Cash and cash equivalents 199

Note 18 Share capital and shareholders information 199

Note 19 Non-current interest bearing debt 200

Note 20 Security pledges and contingent liabilities 201

Note 21 Acquisition of remaining shares and merger of NTS AS 202

Note 22 Divestment of subsidiaries 202

Note 23 Financial risk 203

Note 24 Allegations of price collusion and events occurring after the reporting period 203

193

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 1 General information and accounting policies

NOTE 1 General information and accounting policies

The annual financial statements have been prepared in accordance

with the Norwegian Accounting Act of 1998 and Generally Accepted

Accounting Principles in Norway (NGAAP). The accounting policies

described below are applied only to the parent company SalMarASA.

The financial statement for SalMar Group have been prepared in

accordance to International Financial Reporting Standards (IFRS).

SalMarASA was merged with NTSAS with effect from 13 Decem-

ber2023. For accounting purposes, the merger is accounted for with

group continuity with effect from 1 January 2023. From this time,

SalMarASA has assumed all assets, rights and obligations in NTSAS.

For tax purpose the merger is carried out with full tax continuity in

accordance with the Norwegian Tax Act.

Use of estimates

Preparation of the financial statements in accordance with NGAAP

requires management to make estimates and assumptions which

affect the value of assets and liabilities recognised in the Balance

Sheet as well as income and expenses in the Statement of profit and

loss for the financial year. Estimates and their underlying assumptions

are based on past experience and other factors deemed relevant

and probable at the time they are made. Estimates are reviewed

continuously and final values and results may differ from these esti-

mates. Changes in accounting estimates are accounted for in the

period in which the changes occur.

Classification and valuation of balance sheet items

Assets intended for long-term ownership or use are classified as

non-current assets. Assets related to the normal operating cycle

are classified as current assets. Receivables are classified as current

assets if they are expected to be repaid within 12 months of the

transaction date. Similar criteria are applied to liabilities.

Current assets are valued at the lower of cost and fair value. Cur-

rent liabilities are recognised in the balance sheet at nominal value.

Non-current assets are valued at historical cost. Property, plant and

equipment whose value will deteriorate is depreciated on a straight-

line basis over the asset’s estimated useful life. Non-current assets are

written down to fair value where this is required by accounting rules.

Revenues

Services are recognised in revenue as they are delivered. Revenues

from sales of goods is recognised when control of the goods is

transferred to the customer at an amount that reflects the consid-

eration to which the group expects to be entitled in exchange for

these goods. This is typically when the goods are picked up by the

carrier or on delivery to a terminal or the customer. This depends on

the delivery conditions and varies from customer to customer. The

normal credit period is 30 days net. Revenues are recognised at the

value of the consideration at the transaction date.

Receivables

Trade and other receivables are recognised at their nominal value, less

a provision for expected bad debts. Provisions for bad debts are made

on the basis of an individual assessment of the receivable concerned.

Property, plant and equipment

Property plant & equipment are capitalised at historic cost and depreci-

ated over the asset's expected economic life. Direct maintenance costs

are recognised in operating expenses as they arise, while upgrades

or improvements are added to the asset's cost price and depreciated

in line with the asset concerned. Impairments are recognised when

its carrying amount exceeds its recoverable amount. The recoverable

amount is the higher of net sales value and value in use. Value in use

is the present value of the future cash flows the asset will generate.

Subsidiaries, associated company and joint ventures

Subsidiaries, associates and joint ventures are measured at cost in the

statutory accounts. The investment is evaluated at acquisition cost

less any impairment. An impairment loss is recognised if the impair-

ment is not considered to be temporary and is required pursuant to

generally accepted accounting principles. Impairments are reversed

when the basis for the impairment no longer applies.

Dividends and Group contributions are recognised in the same year

as they are proposed in the subsidiary’s financial statements. If divi-

dends/ Group contributions materially exceed retained earnings after

acquisition, the excess amount is regarded as a reimbursement of

invested capital and is deducted from the recorded cost in the balance

sheet. Dividends and group contributions received are recognised as

other financial income.

Pensions

The company’s pension schemes are according to the requirements

of the Mandatory Occupational Pensions Act. The company operates

a defined contribution pensions scheme for its employees. The com-

pany pays contributions to a privately held insurance plan and has

no further payment obligation once the contributions have been

paid. The contributions are recognised as employee benefit expense

when they are due. Social security costs are charged based on the

contribution paid.

After the merger with Norway Royal Salmon in 2022, SalMar also

has a defined benefit scheme which entitles the 11 members of

the scheme to defined future benefits. These are mainly depend-

ent on the number of years of entitlement, level of salary upon

reaching retirement age and the size of the pension benefits paid

by the National Insurance Scheme. The liability is funded through an

insurance company.

194

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 1 General information and accounting policies

Interest and currency swaps

The company has entered into interest rate swap agreements to

reduce the risk associated with the company's floating rate loans.

The swap agreements satisfy the requirements for hedge accounting,

and are classified as cash flow hedges. The swap agreements are

recognised at fair value in the balance sheet and changes in fair

value are accounted for in comprehensive income. The effectiveness

of the hedge is measured at the end of each period, any ineffective

part will be entered as a financial item in the result. The company

has also entered into a cross-currency interest rate swap to reduce

the interest rate risk and the currency risk linked to the subsidiary in

Iceland. This instrument does not qualify for hedge accounting, and

changes in fair value are recognised as other financial items in the

profit or loss statement.

Share-based payment - Restricted Share Unit Plan (RSU)

The company has a share-based incentive scheme, under which the

company receives services from employees in return for Restricted

Share Units (RSUs). The fair value of the services received by the com-

pany from the employees in return for the RSU granted is recognised

as an expense, with a corresponding increase in paid-in equity. The

total amount expensed over the vesting period is determined on the

basis of fair value on the date the RSUs are granted and the number

of RSUs that are expected to vest.

Fair value includes the effect of any vesting conditions, but does

not take account of any vesting conditions which are not market

conditions. However, vesting conditions which are not market condi-

tions affect the number of RSUs expected to accrue.

The total cost is recognised over the vesting period. On the reporting

date, the company revises its estimate of the number of RSUs that are

expected to vest. The effect of the change from the original estimate

is recognised by means of a corresponding adjustment in equity. The

value of the RSUs relating to employees in subsidiaries is recognised

as an investment in subsidiaries.

Tax

Income tax expense in the financial statements includes tax payable

and the change in deferred tax for the period. Tax relating to equity

transactions is recognised directly in equity. Deferred tax/tax assets

are calculated at 22 percent on all temporary differences between

the book value and tax value of assets and liabilities, and loss carried

forward at the end of the reporting period. Taxable and deductible

temporary differences that reverse or may reverse in the same period

are offset. Deferred tax assets are recognised when it is probable that

the company will have adequate profit for tax purposes in subsequent

periods to utilise the tax asset.

Statement of Cash Flows

The cash flow statement has been prepared according to the indirect

method. Cash and cash equivalents include cash, bank deposits and

other short-term highly liquid investments which entail no appreciable

exchange rate risk, and which mature within three months of the

purchase date.

195

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 2 Operating revenue

NOTE 2 Operating revenue

The parent company SalMarASA is a holding company, which primarily provides administrative services

to group companies.

Through the merger with Norway Royal SalmonASA on 7 November 2022 the sales business in former

NRSASA was included in SalMarASA. With effect from 28th of February 2023 the sales office for

former NRSASA in Kristiansand was sold. With effect from 1 March 2023 the sales activities in SalMar

took place through the legal entity SalMarAS and all sales activities in SalMarASA ceased from the

same time. The sale of the sales office had no significant effect on the statement of profit or loss or

the balance sheet.

NOK 1,000 2023 2022

Revenue intercompany services 410,762 105,292

Revenue intercompany sale of goods 19,276 0

Revenue from sale of goods 394,439 1,381,946

Other intercompany revenue 10,184 0

Other revenues 2,166 552

Total 836,826 1,487,791

Geographic breakdown of sales revenues

from sales of goods (NOK 1,000) 2023 2022

Norway 34,629 181,376

Europe 257,923 983,973

Asia 118,706 181,707

Other countries 2,457 34,891

Total 413,714 1,381,946

Breakdown of sales revenues from sales

of goods by currency (NOK 1,000) 2023 2022

CHF 2,174 2,167

EUR 232,045 857,229

GBP 24,037 87,104

JPY 405 4,249

NOK 44,857 259,676

SEK 571 4,670

USD 109,627 166,851

Total 413,714 1,381,946

196

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

NOTE 3 Salary and personnel expenses

Salary and personnel expenses (NOK 1,000) 2023 2022

Salaries and other short-term employee benefits 87,124 58,781

Social security expenses 18,621 9,999

Pension expenses -4,186 3,683

Share-based payment 8,774 8,700

Other benefits and personnel expenses 18,725 12,880

Total 129,058 94,044

Average number of full-time equivalents employed during the financial year 55 47

Benefits paid to senior executives and the board of directors

See Note 2.3 to the consolidated financial statements for details of the remuneration paid to senior

executives and the board of directors and Note 2.4 to the consolidated financial statements for details

related to outstanding RSUs for members of the senior executives.

Share-based payment - Restricted Share Unit Plan (RSU)

The share-based payment scheme (RSU) comprises annual allocations by the Board of Directors to

the senior executives and other key personnel. The award for 2023 was made on 19 December2023.

In connection with this, 27 employees were granted 31,601 RSUs with respect to company shares.

In the corresponding award in 2022, 20 employees was granted a total of 37,202 RSUs. The RSUs

accrue over a period of three years, with 1/3 vesting annually. The fair value of the cost to SalMarASA

is calculated on the date the award is made and recognised over the vesting period. The cost in 2023

was NOK8.8million (2022: NOK8.7million). A provision for social security tax has been made with

respect to this cost.

See Note 2.4 to the consolidated financial statements for further details of SalMar's share-based

incentive scheme.

NOTE 4 Pension cost

SalMarASA has a defined contribution plan that is in accordance with the legal requirements in Norway.

Premiums paid with respect to the defined-contribution scheme are expensed as incurred. In 2023,

NOK3.6million in pension contributions were recognised in expenses. The scheme includes 58 people.

SalMarASA also have a defined benefit scheme from the merger of Norway Royal Salmon. Members

in the scheme are reduced during the year and there was recognised a gain of NOK9.5million related

to the settlement.

Specification of the pension cost for the Group under the defined benefit scheme:

NOK 1,000 2023

01.11.2022–

31.12.2022

Current service cost 722 715

Interest cost 56 59

Payroll tax 112 109

Administration cost 17 0

Net pension costs service – defined benefit scheme 907 883

Settlement/ curtailment -9,524 0

Net pension costs service – defined benefit

scheme net of settlement/ curtailment

-8,617 883

See Note 2.5 to the consolidated financial statements for further details related to the defined

benefit scheme.

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 3 Salary and personnel expenses

197

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 5 Auditors fees

NOTE 5 Auditors fees

Auditor EY

Breakdown of auditor's fee (NOK 1,000) 2023 2022

Audit services 1,650 1,137

Other certification services 759 1,380

Tax advisory services 1,182 357

Other non-audit fees 29 321

Total 3,620 3,194

*The fees are ex. VAT

Auditor Others

Breakdown of auditor's fee (NOK 1,000) 2023 2022

Audit services 909 507

Other certification services 0 5

Tax advisory services 0 0

Other non-audit fees 34 123

Total 944 635

NOTE 6 Financial items

Financial income and expenses (NOK 1,000) 2023 2022

Group contributions 4,117,943 571,755

Dividends from group companies 16,091 2,460,200

Gain and loss on disposal of subsidiaries 810,703 0

Income from investments in group companies 4,944,737 3,031,955

Dividends from associated companies 10,060 0

Interest income group companies 1,189,768 353,617

Other interest income 22,857 4,526

Total interest income 1,212,624 358,143

Interest expense group companies -322,599 -44,996

Other interest expense -927,968 -257,745

Total interest expense -1,250,567 -302,741

Change in fair value - other financial instruments -117,022 87,218

Other financial items -11,278 -2,165

Total other financial items -128,300 85,053

Net financial items 4,788,553 3,172,409

Gain and loss on disposal of subsidiaries is related to sales transactions of FrøyAS and Arctic Offshore

FarmingAS. See Note 21 and Note 22 for further information.

198

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 7 Intercompany transactions – revenue and cost

NOTE 8 Tax

SalMarASA was merged with NTS AS with effect from 13 December 2023. For accounting purposes,

the merger is accounted for with continuity with effect from 1 January 2023. From this time, SalMarASA

has assumed all assets, rights and obligations in NTS AS. For tax purpose the merger is carried out with

full tax continuity in accordance with the Norwegian Tax Act.

Specification of this year's tax expense (NOK 1,000) 2023 2022

Tax payable 919,410 0

Change in deferred tax -15,675 80,833

Adjustment of previous year taxes 0 544

Total income tax expense in the statement of profit and loss 903,735 81,377

Basis for tax payable (NOK 1,000) 2023 2022

Profit before tax 4,945,797 2,866,448

Dividends recognised in profit and loss -26,151 -2,460,200

Gain or loss on realisation of shares in subsidiaries -810,703 0

Profit before tax in NRS ASA for the period 1 January till 31 October 0 -226,337

Other permanent differences -1,397 -38,824

Other permanent differences with tax effect against equity 708 12,962

Change in temporary differences 72,024 -119,190

Utilisation of previously unrecognised tax losses -1,140 -34,859

Taxable profit 4,179,138 0

Tax payable in the Balance sheet (NOK 1,000) 2023 2022

Tax payable on this year's profit 919,410 0

Tax payable 919,410 0

NOTE 7 Intercompany transactions – revenue and cost

Group internal revenue and cost (NOK 1,000) 2023 2022

Revenue intercompany services 410,762 105,292

Revenue intercompany sale of goods 19,276 29,523

Other intercompany revenue 10,184 0

Revenue from group companies 440,222 134,815

Cost of goods sold -59,879 -780,266

Other costs -7,857 0

Group contributions 4,117,943 571,755

Dividends from group companies 16,091 2,460,200

Income from investments in group companies 4,134,033 3,031,955

Interest income group companies 1,189,768 353,617

Interest expense group companies -322,599 -44,996

Net interest income group companies 867,168 308,621

199

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Specification of temporary differences (NOK 1,000) 2023 2022

Non-current assets -18,316 -2,456

Derivatives 129,905 241,756

Current assets -5,602 -5,909

Other differences 81,307 23,704

Total basis for deferred tax 187,293 257,095

Deferred tax liabilities (+) / deferred tax assets (-) 41,204 56,561

Change in carrying amount of net deferred tax (NOK 1,000) 2023 2022

Deferred tax liability (+)/ deferred tax assets (-) at 1 January 56,561 3,771

Change in deferred tax liability -15,675 80,833

Deferred tax assets associated with merger -210 -51,992

Deferred tax liability associated with equity transactions 528 30,328

Adjustment for deferred tax assets related to prior year 0 -6,379

Deferred tax liabilities (+) / deferred tax assets (-) at 31 December 41,204 56,561

Reconciliation between nominal and

effective tax rates (NOK 1,000) 2023 2022

Profit before tax 4,945,797 2,866,448

Tax calculated with nominal tax rate 1,088,075 630,618

Dividends and gain/ loss on realisation of shares in subsidiaries -184,108 -541,244

Other permanent differences -232 -8,541

Adjustment of previous year taxes 0 544

Total income tax expense in the statement of profit and loss 903,735 81,377

Effective tax rate 18.3% 2.8%

NOTE 9 Intangible assets

2023 – NOK 1,000 Intangible assets

Acquisition cost at 1 January 2023 16,369

Additions 1,630

Acquisition cost at 31 December 2023 17,999

Accumulated depreciation & write-downs at 1 January 2023 2,329

Depreciation in the year 4,488

Accumulated depreciation & write-downs at 31 December 2023 6,817

Carrying amount at 31 December 2023 11,182

Economic lifetime 3–5 years

Depreciation method Linear

2022 – NOK 1,000 Intangible assets

Acquisition cost at 1 January 2022 7,160

Additions 9,209

Acquisition cost at 31 December 2022 16,369

Accumulated depreciation & write-downs at 1 January 2022 0

Depreciation in the year 2,329

Accumulated depreciation & write-downs at 31 December 2022 2,329

Carrying amount at 31 December 2022 14,040

Economic lifetime 3–5 years

Depreciation method Linear

Capitalised other intangible assets are implementation cost related to cloud based arrangements.

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 9 Intangible assets

200

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 10 Property, plant and equipment

NOTE 10 Property, plant and equipment

2023 – NOK 1,000

Land and

buildings

Equipment

and fixtures Total

Acquisition cost at 1 January 2023 3,573 39,780 43,353

Additions 18 980 997

Additions through merger 40,706 4,407 45,113

Disposals 0 -4,277 -4,277

Acquisition cost at 31 December 2023 44,297 40,889 85,187

Accumulated depreciation & write-downs at 1 January 2023 171 34,314 34,485

Additions through merger 10,986 2,571 13,557

Depreciation in the year 1,536 3,512 5,049

Disposals 0 -4,140 -4,140

Write-down in the year 27 1,064 1,090

Accumulated depreciation & write-downs at 31 December 2023 12,720 37,320 50,040

Carrying amount at 31 December 2023 31,577 3,569 35,146

Economic lifetime 17 years/Indefinite 5

–10 years

Depreciation method Linear Linear

Annual lease of uncapitalised operating assets 9,786 0 9,786

2022 – NOK 1,000

Land and

buildings

Equipment

and fixtures Total

Acquisition cost at 1 January 2022 3,558 37,914 41,472

Additions 15 1,865 1,881

Acquisition cost at 31 December 2022 3,573 39,780 43,353

Accumulated depreciation & write-downs at 1 January 2022 171 31,756 31,927

Depreciation in the year 0 2,558 2,558

Accumulated depreciation & write-downs at 31 December 2022 171 34,314 34,485

Carrying amount at 31 December 2022 3,402 5,467 8,868

Economic lifetime Indefinite 5

–10 years

Depreciation method Linear Linear

Annual lease of uncapitalised operating assets 6,124 0 6,124

201

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 11 Subsidiaries

NOTE 11 Subsidiaries

Company (NOK 1,000)

Registered

office

% of

ownership

interest

Carrying

amount 2023

% of

ownership

interest

Carrying

amount 2022

SalMar Settefisk AS Kverva 100.0% 223,745 100.0% 224,057

SalMar Farming AS Kverva 100.0% 3,252,425 100.0% 489,375

SalMar AS Kverva 100.0% 1,199,631 100.0% 1,200,165

SalMar Tunet AS Kverva 100.0% 7,400 100.0% 7,400

Hitramat Farming AS Hitra 51.0% 28,785 51.0% 28,785

SalMar Aker Ocean AS Kverva 85.0% 951,471 85.0% 952,517

Icelandic Salmon AS Kverva 52.48% 744,199 51.02% 660,049

Nor Seafood AS Senja 82.49% 355,409 82.49% 355,409

NTS AS Rørvik 92.93% 8,882,532

SalMar Finnmark AS Alta 100.0% 972,325

Arctic Offshore

Farming AS

Kverva 100.0% 0

Total 6,763,064 13,772,615

Investments in subsidiaries are recognised according to the cost method and yearly tested for impairment.

The ownership share listed above are equal to the voting rights for each company.

SalMarASA was merged with NTSAS with effect from 13 December2023. See Note 21 for further details.

SalMar FinnmarkAS was merged with SalMar FarmingAS with effect from 9 November 2023.

On 11 November 2023 SalMarASA has acquired a total for 450,000 shares in Icelandic SalmonAS

with at total consideration of NOK84.15million. Through the transaction SalMarASA increased its

shareholding in the company from 51.02 percent to 52.48 percent.

With effect from 29 November 2023, the 100 percent owned company Arctic Offshore FarmingAS

was sold from SalMarASA to SalMar Aker OceanAS. See Note 22 for further information.

NOTE 12 Associates and joint ventures

Investments in associates and joint ventures are recognised in accordance with the cost method.

Company (NOK 1,000)

Registered

office

% of ownership

interest

Carrying

amount 2023

Carrying

amount 2022

Norskott Havbruk AS Bergen 50.0% 468,287 468,287

Wilsgård Fiskeoppdrett AS Torsken 37.5% 559,000 559,000

Hellesund Fiskeoppdrett AS Høvåg 33.5% 420,000 420,000

Skamik AS Ottersøy 24.9 % 4,850 0

Total 1,452,136 1,447,287

With effect from 01.01.2023, SkamikAS were recognised as associates in SalMarASA following the

merger with NTSAS. See further information in note 21.

Company (NOK 1,000)

Recognised

dividend

Total equity in latest

annual financial

statements

Profit for the year

in latest annual

financial statements

Norskott Havbruk AS 0 2,152,190 -335,406

Wilsgård Fiskeoppdrett AS 0 883,279 214,531

Hellesund Fiskeoppdrett AS 10,600 737,201 120,146

Skamik AS 0 29,512 9,465

202

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 13 Intercompany transactions - receivables and liabilities

NOTE 13 Intercompany transactions - receivables and liabilities

Group internal receivables and liabilities (NOK 1,000) 31.12.2023 31.12.2022

Intercompany non-current receivables 16,501,597 13,805,920

Trade receivables 734,693 306,927

Group financing receivables 0 2,932,306

Group contributions 4,117,943 571,755

Dividends from group companies 0 2,450,000

Intercompany current receivables 4,852,636 6,260,987

Trade payables 497,162 254,454

Group financing payables 1,444,144 1,120,929

Intercompany current liabilities 1,941,307 1,375,382

In the intercompany non-current receivables a contingent asset of NOK949.6million is included. The

contingent assets is the estimated consideration from the sale of the shares in Arctic Offshore Farm-

ingAS to SalMar Aker OceanAS. See Note 22 for further information.

NOTE 14 Other non-current receivables

NOK 1,000 31.12.2023 31.12.2022

Market value of derivatives 142,803 231,964

Other non-current receivables 2,283 34,218

Total 145,086 266,182

Other non-current receivables included a loan to Gyda EHF with a carrying amount of NOK34.1million

at 31December2022. The loan was a seller's credit arise from sale of a tranche of shares in Icelan-

dic SalmonAS in 2019 with the total amount of NOK35.7million. The loan, including interest was

repaid in 2023.

NOTE 15 Derivatives

Forward currency contracts:

The company had no forward exchange contracts at the end of 2023, as the sale office for former

NRSASA was sold during the year. See Note 2 for further information.

Forward currency contracts

with changes in market

value over profit and loss

in 2022 (NOK 1,000)

Currency

amount

Average

volume-

weighted

hedging rate

Carrying

amount

31.12.2022

Forward Sale EUR 18,467 10.2 -4,991

Forward Sale GBP 912 12.018 150

Forward Sale USD 15,657 10.79 14,633

Total 9,792

All forward currency contracts matured in 2023.

Financial contracts with Fish Pool

The company has not traded any contracts during the year, and had no positions with Fish-pool

per 31.12.2023.

In 2022 there were realised a net loss of NOK13.4million and recognised a unrealised gain of

NOK13.3million on Fish Pool contracts. The company had no positions with Fishpool per 31.12.2022.

203

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Interest and currency derivatives

Interest derivatives with changes in

value through equity (NOK 1,000)

Nominal

value hedge

instruments

(NOK 1,000)

Book value

hedge

object (NOK

1,000)

Hedging

efficiency

Carrying amount

31.12.2023

Market value excl. Interest, (Cash flow

hedge reserve)

2,250,000 2,250,000 100% 139,058

Accrued net interest 3,745

Sum non-current financial assets 142,803

Cross Currency Interest Rate Swaps

with change in value through profit

and loss (NOK 1,000)

Nominal

value hedge

instruments

(NOK 1,000)

Carrying amount

31.12.2023

Market value excl. Interest 1,000,000 -17,291

Accrued net interest 4,393

Sum non-current financial liability -12,898

Specification of Cash flow hedge

reserve in the equity 2023

As of 1

January

As of

31 Dec

Changes over

equity

Changes in Cash flow hedge reserve 133,887 139,058 5,171

Tax -29,455 -30,593 -1,138

Total 104,432 108,465 4,033

Interest derivatives with changes in

value through equity (NOK 1,000)

Nominal

value hedge

instruments

(NOK 1,000)

Book value

hedge

object (NOK

1,000)

Hedging

efficiency

Carrying amount

31.12.2022

Market value excl. Interest, (Cash flow

hedge reserve)

2,250,000 2,250,000 100% 133,887

Accrued net interest 1,780

Sum 135,667

Cross Currency Interest Rate Swaps

with change in value through profit

and loss (NOK 1,000)

Nominal

value hedge

instruments

(NOK 1,000)

Carrying amount

31.12.2022

Cross Currency Interest Rate Swaps 1,000,000 92,597

Accrued value of net interest 3,701

Sum 96,297

Total non-current financial assets 231,964

Specification of Cash flow hedge

reserve in the equity 2022

As of 1

January

As of

31 Dec

Changes over

equity

Changes in Cash flow hedge reserve 0 133,887 133,887

Tax 0 -29,455 -29,455

Total 0 104,432 104,432

The company has entered into fixed rate interest swap contracts with a total principal of NOK2,250mil-

lion. 750million has a duration of 7 years starting 22 April 2022, 750million has a duration of 10 years

starting 22 January 2024, and 750million has a duration of 7 years starting 22 January 2025. The interest

swap contracts are establish with the purpose to reduce the interest rate risk related to long-term loan.

The cross currency interest rate swap agreement where NOK1.000million of the bond loan was

swapped to EUR 98.335million with fixed rates, hedges NOK1.000million of the bond loan, and the

currency risk linked to the investment in the group company Icelandic SalmonAS. The agreement expires

in January 2027.

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 15 Derivatives

204

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 16 Trade and other receivables

NOTE 16 Trade and other receivables

NOK 1,000 31.12.2023 31.12.2022

Trade receivables 11,672 286,060

Provisions for bad debts -6,802 -4,765

Total trade receivables at 31 December 4,870 281,295

NOK 1,000 31.12.2023 31.12.2022

Provisions for bad debt 1 Jan 4,765 0

Provisions for bad debts 31 Dec 6,802 4,765

Change in provisions for bad debts during the period 2,038 4,765

Actual bad debts 2,482 -1,548

Provisions for bad debts acquired through merger with NRS ASA 0 6,591

Change in provisions for bad debts 2,038 -1,827

Bad debts charged to expenses during the period 4,520 3,217

Trade receivables had the following maturity profile Not due <30 d 30–45d 45–90d >90d Total

31.12.2023 50 75 0 2,329 9,218 11,672

31.12.2022 112,860 147,912 17,493 829 6,965 286,060

Transferred receivables

During the year, SalMarASA terminated the receivables purchase agreement and there are no outstanding

balance with the bank in this regard. Expected insurance settlement has been taken in to account when

provision for bad debts has been calculated.

205

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 17 Cash and cash equivalents

NOTE 17 Cash and cash equivalents

Cash and cash equivalents (NOK 1,000) 31.12.2023 31.12.2022

Cash at bank 520 1,392,390

Restricted cash - withholding tax 13,789 17,663

Other restricted cash 1,248 1,227

Cash and cash equivalents 15,557 1,411,280

NOTE 18 Share capital and shareholders information

Share capital and number of shares 31.12.2023 (NOK 1,000) Total number of shares Nominal value

Total share

capital

Ordinary shares 132,038,920 0.25 33,010

As of 31December2023, SalMarASA has 132,038,920 shares with

a nominal value of NOK0.25 per share. All shares issued by the Com-

pany are fully paid. There is one class of shares and all shares have

the same rights.

As of 31December2023, SalMarASA owned 278,854 treasury shares.

See Note 4.2 to the consolidated financials statements for a list of

the company's largest shareholders and the shareholdings of senior

executives.

Share capital reduction in connection with intra-

group merger

On 13 December2023, SalMarASA's share capital was decreased

by 13,100,000 shares (nominal value of NOK0.25 per share), from

145,138,920 shares to 132,038,920 shares. The share capital was

thus decreased by a total of NOK3,275million, from NOK36,285mil-

lion to NOK33,010million. For further information regarding the

intra-group merger with NTS, please see note 21.

Dividend

Provision has been made for a dividend payment of NOK35.00 per

share, totalling NOK4,611.6million, as at 31December2023. No

provision is made with respect to treasury shares

206

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 20 Acquisition and merger of NTS ASA and NRS ASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

NOTE 19 Non-current interest bearing debt

Non-current interest bearing debt

NOK 1,000 31.12.2023 31.12.2022

Green bond 3,500,000 3,500,000

Non-current loan 6,000,000 12,734,567

Non-current revolver credit facility 1,700,000 1,100,000

Amortised cost -88,947 -67,194

Total non-current interest bearing debt 11,111,053 17,267,373

Maturity profile - non-current interest bearing debt

NOK 1,000 2024 2025 2026 2027 2028 Total

Green bond 0 0 0 3,500,000 0 3,500,000

Non-current loan 0 0 6,000,000 0 0 6,000,000

Non-current revolver

credit facility

0 0 0 0 1,700,000 1,700,000

Amortised cost -31,374 -31,709 -25,864 0 0 -88,947

Total -31,374 -31,709 5,974,136 3,500,000 1,700,000

11,111,053

In August 2023, SalMar entered into a new senior unsecured credit facility agreement, totalling

NOK16,000million, with the intention of making it sustainability linked. The agreement comprises

a 3+1+1 year term loan with a total of NOK6,000million, a 5+1+1 year rolling credit facility of

NOK10,000million, and a NOK3,000million in accordion option. The new senior unsecured credit

facility is a syndicated agreement that consists of 5 banks composed in two tiers, each tier with various

share of the total facility.

With effect from 22 April 2021, SalMarASA issued an unsecured green bond totalling NOK3,500mil-

lion. No installments on the loan are payable during the period of the agreement, which matures on 22

January 2027. The bond carries an interest rate at 3-months NIBOR + 1.35% per annum, due quarterly.

The loan is capitalised at amortised cost using the effective interest rate method. The bond loan is listed

on the Oslo Stock Exchange under the ticker SALM01 ESG.

SalMar has annually renewable multicurrency cash pooling arrangements limited to NOK1,600million. As

of 31December2023, the Group had drawn down NOK1,080million (2022: 0) on these arrangements.

Deposits and drawdowns in various currencies relating to the group account scheme are recognised net

in the Group’s financial statements.

Financial covenants

The new senior unsecured credit facility agreement features improved terms compared to previous

facilities and includes covenants of an equity ratio above 30 percent and interest cover exceeding

3.0. The green bond has a financial covenant requiring an equity ratio of 30% in the agreement period.

SalMar was in compliance with all of the above-mentioned covenants as of 31December2023.

207

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 20 Security pledges and contingent liabilities

NOTE 20 Security pledges and contingent liabilities

Carrying amount of interest bearing debt secured by mortgages and pledges:

NOK 1,000 31.12.2023 31.12.2023

Non-current interest bearing debt 0 13,834,567

Current interest bearing debt 0 423,354

Total 0 14,257,923

During the third quarter in 2023, SalMar entered into a new senior unsecured credit facility agreement,

hence there are no debt secured by mortgages as at 31.12.2023.

Carrying amount of assets pledged as security for recognised debt:

NOK 1,000 31.12.2023 31.12.2022

Property, plant and equipment 0 8,868

Investments in subsidiaries 0 13,772,615

Trade receivables 0 281,295

Current and non-current receivables 0 20,066,907

Total 0 34,129,687

SalMarASA has issued a guarantee in the amount of NOK95million with respect to a long-term loan

to SalMarAS. The loan has been granted by Innovasjon Norge.

SalMarASA has issued a guarantee to Frøya IndustrieiendomAS with respect to any and all amounts

which SalMarAS has an obligation to pay Frøya IndustrieiendomAS under the terms of a lease, with

supplementary agreement, between SalMarAS and Frøya IndustrieiendomAS. The guarantee is valid

during the leasing period, as specified in the lease, plus three months.

SalMarASA has issued a guarantee to KLP Eiendom TrondheimAS in the amount of NOK1.6million.

The guarantee has been issued as security for SalMarASA's office rental liabilities and is valid during

the rental period.

SalMarASA has issued a guarantee to HENTAS in the amount of NOK544.1million. The guarantee has

been issued as security for SalMarAS's liabilities to the creditor in respect to an engineering, procurement

and construction contract for a new harvesting and processing plant - InnovaNor.

208

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 21 Acquisition of remaining shares and merger of NTS AS

NOTE 21 Acquisition of remaining shares and merger of NTS AS

Compulsory acquisition of all remaining shares in NTS AS

Through a voluntary offer to acquire all outstanding shares in NTSAS, and a following mandatory

offer to acquire the remaining shares, SalMarASA owned 92.93 percent of the shares in NTSAS as

at 31December2022. The total consideration for the investment was NOK8,882.5million including

transaction cost of NOK41.6million.

On 3 January 2023 SalMar publicly announced that they resolved to carry out a compulsory acquisition

of all remaining shares in the company not owned by SalMar and with effect from 3 January 2023,

SalMar became 100 percent owner of all shares in NTSAS. The total consideration for the remaining

shares was NOK674.3million.

Certain former minority shareholders that were subject to the compulsory acquisition have made a formal

complaint and initiated legal proceedings about the redemption sum.

Merger of NTS AS

On 13 December2023 SalMarASA was merged with NTSAS. For accounting purposes, the merger are

accounted for with group continuity with effect from 1 January 2023. From this time, SalMarASA has

assumed all assets, rights and obligations in NTSAS. For tax purpose the merger is carried out with full

tax continuity in accordance with the Norwegian Tax Act.

At the time of merger NTSAS hold 13,691,960 shares in SalMarASA with a carrying amount of

NOK4,512.9million witch is accounted for as treasury shares in SalMarASA.

NTSAS also owned 72.11 percent of the shares in FrøyASA with a carrying amount of NOK1,262.2mil

lion. In addition as a consequence of the merger with NTSAS the group acquisition effect related to

FrøyASA is added to the carrying amount with a net effect of NOK2,507.5million. SalMars total carrying

amount of the shares in FrøyASA was after the merger NOK3,769.7million.

NOTE 22 Divestment of subsidiaries

Frøy AS

On 14 August 2023 the sale of SalMars entire ownership stake in Frøy, representing 72.11 percent

of the shares in FrøyAS, was completed. A cash consideration of NOK76.50 per share was paid in the

transaction, with proceeds from the sale amounting to NOK4,764million. The gain for SalMarASA from

the transaction amounted to NOK975.2million net of transaction cost. The gain are included in income

from investments in group companies. See Note 6 for further information.

Arctic Offshore Farming AS

With effect from 29 November 2023, the 100 percent owned company Arctic Offshore FarmingAS

was sold from SalMarASA to the 85 percent owned subsidiary SalMar Aker OceanAS. The transaction

was part of the group's internal reorganization to consolidate the group's offshore investment under

SalMar Aker OceanAS.

Before the sale SalMarASA carried out a capital contribution in Arctic Offshore FarmingAS with a total

amount of NOK1,114.1million. Settlement of the shares is an earn-out agreement where the consider-

ation is depended on certain conditions being met. At the time of the transaction the consideration was

estimated to NOK949.6million. The consideration is recognised in the balance sheet as a contingent

assets and classified as intercompany non-current receivables. See Note 13 for further information.

SalMarASAs loss related to the transaction of NOK164.5million are included in income from investments

in group companies. See Note 6 for further information.

209

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 23 Financial risk

NOTE 23 Financial risk

See Note 4.1 to the consolidated financial statements for further details concerning the management

of the company and the Group's financial market risk.

NOTE 24 Allegations of price collusion and events occurring after the

reporting period

See Note 4.10 to the consolidated financial statements for further details concerning the allegations

of price collusion including events occurring after the reporting period related to this issue.

210

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA

Financial Statement and Results Notes to the Financial Statements for 2023, SalMarASA Note 4.11 Alternative performance measures

211

Financial Statement and Results Statement by the Board of Directors and CEOFinancial Statement and Results Statement by the Board of Directors and CEO

Statement by the Board

of Directors and CEO

We confirm, to the best of our knowledge, that:

The Group financial statements for the period from 1 January

to 31 December 2023 have been prepared in accordance with

IFRS, as adopted by the EU.

The financial statements of SalMar ASA for the period from 1

January to 31 December 2023 have been prepared in accor-

dance with Norwegian Accounting Act and accounting stan-

dards and practices generally accepted in Norway.

The financial statements give a true and fair view of the Group

and the Company’s consolidated assets, liabilities, financial

position and results of operations.

The Report of Board of Directors provides a true and fair view

of the development and performance of the business and

the position of the Group and the Company, together with

a description of the key risks and uncertainty factors that the

Group and the Company is facing.

Frøya, 12 April 2024

The Board of Directors of SalMarASA

Gustav Witzøe

Chair of the Board

Margrethe Hauge

Vice-Chair of the Board

Morten Loktu

Board Member

Arnhild Holstad

Board Member

Leif Inge Nordhammer

Board Member

Ingvild Kindlihagen

Board Member

Employee representative

Frode Arntsen

CEO

Hans Stølan

Board Member

Employee representative

212

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

Independent Auditor’s Report

To the Annual Shareholders’ Meeting of SalMarASA

Report on the audit of the

financial statements

Opinion

We have audited the financial statements of SalMar ASA (the

Company) which comprise the financial statements of the Company

and the consolidated financial statements of the Company and its

subsidiaries (the Group). The financial statements of the Company

comprise the balance sheet as at 31 December 2023 and the state-

ment of profit or loss, statement of cash flows and statement of

changes in equity for the year then ended and notes to the financial

statements, including a summary of significant accounting policies.

The consolidated financial statements of the Group comprise the

balance sheet as at 31 December 2023, the statement of profit or

loss, statement of other comprehensive income, statement of cash

flows and statement of changes in equity for the year then ended

and notes to the financial statements, including material accounting

policy information.

In our opinion

• the financial statements comply with applicable legal

requirements,

• the financial statements give a true and fair view of the

financial position of the Company as at 31 December 2023

and its financial performance and cash flows for the year

then ended in accordance with the Norwegian Accounting

Act and accounting standards and practices generally

accepted in Norway,

• the consolidated financial statements give a true and

fair view of the financial position of the Group as at 31

December 2023 and its financial performance and cash

flows for the year then ended in accordance with IFRS

Accounting Standards as adopted by the EU.

Our opinion is consistent with our additional report to the

audit committee.

Basis for opinion

We conducted our audit in accordance with International Standards

on Auditing (ISAs). Our responsibilities under those standards are

further described in the Auditor’s responsibilities for the audit of

the financial statements section of our report. We are independent

of the Company and the Group in accordance with the requirements

of the relevant laws and regulations in Norway and the International

Ethics Standards Board for Accountants’ International Code of Ethics

for Professional Accountants (including International Independence

Standards) (IESBA Code), and we have fulfilled our other ethical respon-

sibilities in accordance with these requirements. We believe that the

audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit

services referred to in the Audit Regulation (537/2014) Article 5.1

have been provided.

We have been the auditor of the Company for 11 years from the

election by the general meeting of the shareholders on 5 June 2013

for the accounting year 2013 (with a renewed election in 2018).

Key audit matters

Key audit matters are those matters that, in our professional judgment,

were of most significance in our audit of the financial statements

for 2023. These matters were addressed in the context of our audit

of the financial statements as a whole, and in forming our opinion

thereon, and we do not provide a separate opinion on these matters.

For each matter below, our description of how our audit addressed

the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s respon-

sibilities for the audit of the financial statements section of our

report, including in relation to these matters. Accordingly, our audit

included the performance of procedures designed to respond to our

assessment of the risks of material misstatement of the financial

statements. The results of our audit procedures, including the pro-

cedures performed to address the matters below, provide the basis

for our audit opinion on the financial statements.

213

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

Valuation of biological assets

Basis for the key audit matter

The Group measures biological assets at fair value less costs to sell

in accordance with IAS 41 and IFRS 13. At 31 December 2023 the

biological assets amounted to NOK 13,264.7 million. The difference

between the fair value of the biological assets and the related cost

is recognized as a fair value adjustment. In 2023, the recognized fair

value adjustment amounted to NOK 1,571.1 million. The fair value

adjustment included in the carrying amount was NOK 4,760.8 million.

For fish in sea the fair value less costs to sell was calculated using

a model based on a net present value methodology. This is calculated

based on assumptions of biomass volumes, quality, market prices at

the harvest dates, remaining expenses to produce, harvest and sell the

biomass and time in sea until harvest mature. The market prices are

based on observable forward prices for the period when harvesting

is expected. The fair value of biological assets was a key audit matter

due to the significant amount, the level of judgements involved in the

valuation and the assumptions used in the calculation.

Our audit response

We evaluated the valuation and the model against the requirements in

IAS 41, IFRS 13 and industry practice. We observed the routines and

tested controls related to the calculation of the fair value adjustment

of the biomass. We compared the prices applied against observable

market prices at the expected harvesting dates. In addition, we evalu-

ated the estimated remaining expenses to produce the harvest mature

fish, including assumptions on size distribution of the biomass, time

in sea until harvest mature, mortality and quality of the live fish in

sea. Furthermore, we evaluated the historical accuracy in prior peri-

ods’ estimates and the sensitivity analysis of changes in expected

prices, biomass and discount rate. We recalculated the model used to

calculate fair value for the relevant weight classes. We refer to note

1.7, note 2.9 and note 3.6 to the consolidated financial statements.

Other information

Other information consists of the information included in the annual

report other than the financial statements and our auditor’s report

thereon. Management (the board of directors and chief executive

officer) is responsible for the other information. Our opinion on the

financial statements does not cover the other information, and we do

not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our respon-

sibility is to read the other information, and, in doing so, consider

whether the board of directors’ report, the statement on corporate

governance and the statement on corporate social responsibility

contain the information required by applicable legal requirements

and whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit, or

otherwise appears to be materially misstated. If, based on the work we

have performed, we conclude that the other information is materially

inconsistent with the financial statements, there is a material mis-

statement in this other information or that the information required by

applicable legal requirements is not included in the board of directors’

report, the statement on corporate governance or the statement on

corporate social responsibility, we are required to report that fact.

We have nothing to report in this regard, and in our opinion, the board

of directors’ report, the statement on corporate governance and the

statement on corporate social responsibility are consistent with the

financial statements and contain the information required by appli-

cable legal requirements.

Responsibilities of management for the

financial statements

Management is responsible for the preparation of the financial state-

ments of the Company that give a true and fair view in accordance

with the Norwegian Accounting Act and accounting standards and

practices generally accepted in Norway, and for the preparation of the

consolidated financial statements of the Group that give a true and

fair view in accordance with IFRS Accounting Standards as adopted

by the EU. Management is responsible for such internal control as

management determines is necessary to enable the preparation

of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, management is responsible for

assessing the Company’s and the Group’s ability to continue as a going

concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless management

either intends to liquidate the Company or the Group, or to cease

operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the

financial statements

Our objectives are to obtain reasonable assurance about whether the

financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assur-

ance, but is not a guarantee that an audit conducted in accordance

with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the

basis of these financial statements.

214

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

As part of an audit in accordance with ISAs, we exercise professional

judgment and maintain professional scepticism throughout the

audit. We also:

• Identify and assess the risks of material misstatement

of the financial statements, whether due to fraud or

error, design and perform audit procedures responsive to

those risks, and obtain audit evidence that is sufficient

and appropriate to provide a basis for our opinion. The

risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error, as

fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to

the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the

Company’s and the Group’s internal control.

• Evaluate the appropriateness of accounting policies used

and the reasonableness of accounting estimates and

related disclosures made by management.

• Conclude on the appropriateness of management’s use of

the going concern basis of accounting and, based on the

audit evidence obtained, whether a material uncertainty

exists related to events or conditions that may cast

significant doubt on the Company’s and the Group’s ability

to continue as a going concern. If we conclude that

a material uncertainty exists, we are required to draw

attention in our auditor’s report to the related disclosures

in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our

auditor’s report. However, future events or conditions may

cause the Company and the Group to cease to continue as

a going concern.

• Evaluate the overall presentation, structure and content

of the financial statements, including the disclosures, and

whether the financial statements represent the underlying

transactions and events in a manner that achieves fair

presentation.

• Obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business activities

within the Group to express an opinion on the consolidated

financial statements. We are responsible for the direction,

supervision and performance of the group audit. We remain

solely responsible for our audit opinion.

We communicate with the board of directors regarding, among other

matters, the planned scope and timing of the audit and significant

audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the audit committee with a statement that we have

complied with relevant ethical requirements regarding independence,

and to communicate with them all relationships and other matters

that may reasonably be thought to bear on our independence, and

where applicable, related safeguards.

From the matters communicated with the board of directors, we

determine those matters that were of most significance in the audit

of the financial statements of the current period and are therefore the

key audit matters. We describe these matters in our auditor’s report

unless law or regulation precludes public disclosure about the matter

or when, in extremely rare circumstances, we determine that a matter

should not be communicated in our report because the adverse con-

sequences of doing so would reasonably be expected to outweigh

the public interest benefits of such communication.

215

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

Report on other legal and

regulatory requirement

Report on compliance with regulation on European

Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of SalMar ASA we have

performed an assurance engagement to obtain reasonable assurance

about whether the financial statements included in the annual report,

with the file name salmarasa-2023-12-31-en.zip, have been prepared,

in all material respects, in compliance with the requirements of the

Commission Delegated Regulation (EU) 2019/815 on the European

Single Electronic Format (ESEF Regulation) and regulation pursuant to

Section 5-5 of the Norwegian Securities Trading Act, which includes

requirements related to the preparation of the annual report in XHTML

format and iXBRL tagging of the consolidated financial statements.

In our opinion, the financial statements, included in the annual report,

have been prepared, in all material respects, in compliance with the

ESEF Regulation.

Management’s responsibilities

Management is responsible for the preparation of the annual report

in compliance with the ESEF Regulation. This responsibility comprises

an adequate process and such internal control as management deter-

mines is necessary.

Auditor’s responsibilities

Our responsibility, based on audit evidence obtained, is to express an

opinion on whether, in all material respects, the financial statements

included in the annual report have been prepared in accordance with

the ESEF Regulation. We conduct our work in accordance with the

International Standard for Assurance Engagements (ISAE) 3000 –

“Assurance engagements other than audits or reviews of historical

financial information”. The standard requires us to plan and perform

procedures to obtain reasonable assurance about whether the finan-

cial statements included in the annual report have been prepared in

accordance with the ESEF Regulation.

As part of our work, we perform procedures to obtain an understanding

of the company’s processes for preparing the financial statements in

accordance with the ESEF Regulation. We test whether the financial

statements are presented in XHTML-format. We evaluate the com-

pleteness and accuracy of the iXBRL tagging of the consolidated

financial statements and assess management’s use of judgement. Our

procedures include reconciliation of the iXBRL tagged data with the

audited financial statements in human-readable format. We believe

that the evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Trondheim, 12 April 2024

Ernst & YoungAS

Christian Ronæss

State Authorised Public Accountant (Norway)

216

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

To the Board of Directors of SalMarASA

Independent Accountant’s

Assurance Report

Scope

We have been engaged by SalMar ASA to perform a limited assurance

engagement, as defined by International Standards on Assurance

Engagements, here after referred to as the engagement, to report on

SalMar ASA’s sustainability reporting as defined and specified in the

SalMar ASA’s GRI Index (see the document GRI content index 2023

on page 70 in SalMar ASA’s Annual report) (the “Subject Matter”) as

for the year then ended.

Other than as described in the preceding paragraph, which sets out

the scope of our engagement, we did not perform assurance proce-

dures on the remaining information included in the Annual report,

and accordingly, we do not express a conclusion on this information.

Criteria applied by SalMarASA

In preparing the Subject Matter, SalMar ASA applied the relevant cri-

teria from the Global Reporting Initiative (GRI) sustainability reporting

standards as well as its own defined published criteria (the “Criteria”).

The Criteria can be accessed at globalreporting.org and are available

to the public. SalMar ASA has also applied relevant criteria from the

reporting standards of the Global Salmon Initiative (GSI). Such Criteria

were specifically designed for companies and other organizations

that want to report their sustainability impacts in a consistent and

credible way. As a result, the Subject Matter information may not be

suitable for another purpose.

SalMarASA’s responsibilities

The Board of Directors and Group Chief Executive Officer (manage-

ment) are responsible for selecting the Criteria, and for presenting

the Subject Matter in accordance with that Criteria, in all material

respects. This responsibility includes establishing and maintaining

internal controls, maintaining adequate records and making estimates

that are relevant to the preparation of the Subject Matter, such that

it is free from material misstatement, whether due to fraud or error.

EY’s responsibilities

Our responsibility is to express a conclusion on the presentation of

the Subject Matter based on the evidence we have obtained.

We conducted our engagement in accordance with the International

Standard for Assurance Engagements Other Than Audits or Reviews

of Historical Financial Information (‘ISAE 3000’). This standard requires

that we plan and perform our engagement to obtain limited assur-

ance about whether, in all material respects, the Subject Matter is

presented in accordance with the Criteria, and to issue a report. The

nature, timing, and extent of the procedures selected depend on our

judgment, including an assessment of the risk of material misstate-

ment, whether due to fraud or error.

We believe that the evidence obtained is sufficient and appropriate

to provide a basis for our limited assurance conclusion.

Our Independence and Quality Control

We are independent of the Company and the Group in accordance with

the requirements of the relevant laws and regulations in Norway and

the International Ethics Standards Board for Accountants’ International

Code of Ethics for Professional Accountants (including International

Independence Standards) (IESBA Code), and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

EY also applies International Standard on Quality Management 1, Qual-

ity Management for Firms that Perform Audits or Reviews of Financial

Statements, or Other Assurance or Related Services engagements,

which requires that we design, implement and operate a system

of quality management including policies or procedures regarding

compliance with ethical requirements, professional standards and

applicable legal and regulatory requirements.

Description of procedures performed

Procedures performed in a limited assurance engagement vary in

nature and timing from, and are less in extent than for, a reasonable

assurance engagement. Consequently, the level of assurance obtained

in a limited assurance engagement is substantially lower than the

assurance that would have been obtained if a reasonable assurance

engagement had been performed. Our procedures were designed to

obtain a limited level of assurance on which to base our conclusion

and do not provide all the evidence that would be required to provide

a reasonable level of assurance.

Although we considered the effectiveness of management’s internal

controls when determining the nature and extent of our procedures,

our assurance engagement was not designed to provide assurance

on internal controls. Our procedures did not include testing controls or

performing procedures relating to checking aggregation or calculation

of data within IT systems.

A limited assurance engagement consists of making enquiries, primar-

ily of persons responsible for preparing the Subject Matter and related

information and applying analytical and other appropriate procedures.

217

Financial Statement and Results Independent Auditor’s ReportFinancial Statement and Results Independent Auditor’s Report

Our procedures included:

• Interviews with key personnel to understand the business

and the reporting process

• Interviews with key personnel to understand the process

for collecting, collating and reporting the Subject Matter

during the reporting period

• Test on a sample basis the calculation Criteria against the

methodologies outlined in the Criteria

• Analytical review procedures of the data

• Comparison, on a sample basis, of data with the underlying

source information

• Comparison of the presentation of the Subject Matter with

the presentation requirements outlined in the Criteria.

We believe that our procedures provide us with an adequate basis

for our conclusion. We also performed such other procedures as we

considered necessary in the circumstances.

We have performed these procedures on the following indicators that

also form the scope of our conclusion:

GRI/GSI Custom

GRI 303-5

Certification of marine ingredients in fish

feed

GRI 305-1

Certification of soya ingredients in fish

feed

GRI 305-2

Forage fish dependency ratio (FFDR) for

fish meal

GRI 305-3

Forage fish dependency ratio (FFDR) for

fish oil

GRI 305-4 Biological feed conversion ratio

GRI 403-9 Share of secondary processing

GRI 403-10 B-analysis benthic score ≤ 2

GSI Fish Mortality

Fresh water intensity (liter per kg pro-

duced)

GSI Antibiotic Use

GSI Wildlife interactions

GSI Fish Escapes

GSI Certifications

Conclusion

Based on our procedures and the evidence obtained, we are not aware

of any material modifications that should be made to the Subject

Matter as for the year then ended in order for it to be in accordance

with the Criteria.

Trondheim, 12 April 2024

Ernst & YoungAS

Christian Ronæss

State Authorised Public Accountant

218

Passion

for Salmon

SalMarASA

Industriveien 51

N-7266 Kverva

NORWAY

Tel.: +47 72 44 79 00

www.salmar.no

Design and layout

Rosenborg Reklame

Date published

19 April 2024