Annual Report
This is SalMar
Message From the CEO 6
The History of SalMar 9
A New Era in Aquaculture 11
The ABC of Salmon Farming 13
SalMar’s Operating Segments 14
SalMar’s Cultural Tenets 17
Passion for Salmon 18
Sustainability and Corporate
Responsibility
Sustainability in Everything We Do 20
Fish 25
Environment & Technology 37
People & Society 49
GRI Index and Third-Party Verification 180
Corporate Governance
Corporate Governance at SalMar ASA 56
Executive Management 65
Board of Directors 66
Shareholder Information 68
Report of the Board of Directors 70
Financial Statements and Results
Consolidated Financial
Statements of SalMar Group 86
Notes to the Consolidated Financial
Statements of SalMar Group 94
Annual Financial
Statements of Salmar ASA 157
Notes to the Annual Financial
Statements of SalMar ASA 162
Statement by the Board of
Directors and CEO 174
Independent Auditor’s Report 175
Annual report 2021
Contents
Chapter start Next chapter
Our Locations Harvest Volume
by Geography
Geographical Distribution of Sales Volume
SalMar Northern Norway
SalMar Japan
SalMar South Korea
SalMar Taiwan
Yu Fish Singapore
Icelandic Salmon
SalMar Vietnam
SalMar Central Norway
Scottish Sea Farms LTD
Other: 1% Asia: 21%
North America: 9% Europe: 69%
2020
2021
Icelandic Salmon
1
2020
2021
Scottish Sea Farms Ltd
2
2020
2021
SalMar Northern Norway
2020
2021
110.7
100.4
59.8
11.5
16.2
49.9
11.2
12.0
SalMar Central Norway
1
100% share
2
50% share
1,000 tonnes gutted weight
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Financial Key Figures NOK 1,000
2021 2020
Revenue 15,044 12,912
Operational EBIT 2,927 3,007
Earnings per share 22.61 17.52
Dividend share of EPS 88% 114%
Equity Ratio 55% 50%
NIBD incl. Leasing/EBITDA 1.48 1.53
Number of FTEs
2021 Female Male
SalMar 1,828 28% 72%
Icelandic Salmon 133 23% 77%
SalMar Group 1,960 27% 73%
529
27%
1,431
73%
Female
Male
Sickness Absence
SalMar
6.1%
Target <4.5%
Icelandic Salmon
4.1%
Target <4.5%
Economic Feed Conversion Ratio
SalMar
1.19
Target <1.13
Icelandic Salmon
1.30
Target <1.13
Share of Secondary Processing
H-Factor
SalMar
5.9
Target <6
Icelandic Salmon
5.5
Target <6
Survival Rate
SalMar
95.0%
Target >97%
Icelandic Salmon
93.3%
Target >95%
Greenhouse Gas Emission Intensity (kgCO
2
e per tonne produced)
81 (-9%) 3,051 (-7%)
179 (59%) 2,621 (-22%)
Target: 46% reduction from
2019 to 2030*
Target: 42% reduction
from 2020 to 2030*
Scope 1+2: Scope 3:
*All targets subject to final approval by the Science Based Targets Initiative.
SalMar
Icelandic Salmon
SalMar
44.7%
Target >42.5%
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This is SalMar Message From the CEO
Message From the CEO
THE GLOBAL FOOD
SUPPLY – OUR SHARED
RESPONSIBILITY
SalMar has continued to supply critical food products through two
challenging years, despite a deadly pandemic that put large parts of
the world in lockdown. This is due to an impressive eort on the part
of our 1,800 employees, partners and customers across the globe,
who time and again found solutions when problems mounted up.
In 2021, almost a billion portions of salmon on plates in more than
50 countries worldwide came from SalMar, largely produced on the
Norwegian coast. We are all naturally concerned with food security
within our own borders. At the same time, SalMar is proud to be able
to contribute to secure food supplies in the rest of the world too. Food
security is the most important of all society’s important functions.
Unfortunately, we did not get far into the new year that was supposed
to bring us out of the pandemic before the light at the end of the
tunnel proved to be fixed to an oncoming train rather than a world
illuminated by optimism. The attack on Ukraine shocked the world, with
a war that neither healthcare personnel nor vaccine manufacturers
can resolve. We are each fairly helpless when ruthless forces like this
are unleashed. But collectively we can make a dierence, by showing
our solidarity with the people of Ukraine. In this way, hopefully, the
forces for good will gradually prevail, and we can all help to alleviate
acute deprivation. Together with its employees, SalMar has provided
humanitarian assistance through aid organisations. We are also grate-
ful that good partners made it possible to send a lorry containing 20
tonnes of salmon – 160,000 portions – to be donated and distributed
to the suering people of Ukraine.
An eventful year – challenges and opportunities
We can safely say that 2021 was – all told – an eventful year for
SalMar. We took steps which strengthen us in all parts of the value
chain and in all regions. SalMar has a 30-year history of sustainable
growth, based on two fundamental operating principles: a minimal
footprint in the areas we operate while maximizing value creation
in the coastal areas in which we produce salmon. Through the year,
we have made significant investments which, both individually and
collectively, to reinforce SalMar’s endeavours along the entire value
chain, from genetics and smolt to processing and sales.
Environmental sustainability is fundamental to everything we do. We
are now making investments that will substantially strengthen our
processing capacity, and our position as ‘the processing company’.
Secondary processing generates 3–4 times as many jobs as the export
of round salmon, strengthens Norway’s supply industry even more and
results in lower greenhouse gas emissions. We therefore welcome the
consultation report Green value creation and increased processing in
the seafood industry published by the Norwegian Ministry of Trade,
Industry and Fisheries. The report has been compiled by an expert
committee with in-depth knowledge of the seafood industry, and
is a long-awaited document for everyone who wants processing in
Norway to be higher on the government’s agenda. In its Hurdal policy
platform, the government states that increased seafood processing
in Norway is an important objective for the government. Even more
important is that the government converts words into action, and
draws up a programme to stimulate seafood processing in Norway as
quickly as possible. This will have a decisive impact on value creation,
employment and population retention along the Norwegian coast.
Harvesting and secondary processing at various places along the
coast are an important part of SalMar’s sustainable growth strategy.
This is demonstrated, in part, through the startup of Vikenco’s new
processing facility in the second quarter of 2021, while InnovaNor is
due to go into operation in the fourth quarter of 2021. Both facilities
President & CEO Gustav Witzøe
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This is SalMar Message From the CEO
are ecient and technically advanced ‘flagships’, well adapted to
SalMar’s position as a technologically leading seafood producer. They
will also make us even better equipped to oer the right product
to the right customer – while ensuring greater local value creation.
Vikenco has a capacity of around 40,000 tonnes per year at both
its harvesting and secondary processing departments. InnovaNor
will initially have a harvesting capacity of 75,000 tonnes per shift
per year and a secondary processing capacity of 30,000 tonnes per
year. However, it has a significant potential to increase capacity in
both departments within the existing facility
Financially sustainable processing in Norway requires a steady and
substantial inflow of salmon. This makes it even more important for
SalMar to make strategic investments across the value chain. The
construction of two large new hatcheries is currently underway in
both Northern Norway and Central Norway. The facilities in Senja,
Troms, and Tjuin in the municipality of Steinkjer constitute a com-
bined investment of approx. NOK 2 billion. The new facilities will
increase the company’s annual production capacity by 40 million
smolt. We have also put our first closed net pen into operation.
In addition, we have increased our production capacity through
investments in Nekton Havbruk and Refsnes Laks. This forms the
basis for increased volume growth in some of the best areas for
salmon production in Norway.
The business in Iceland has made clear improvements in 2021
compared with previous years. Through Icelandic Salmon, we have
strengthened our operational performance and become more cost
eective. The volume harvested has remained fairly constant at
around 11,000 tonnes. In 2022, we have indicated an expected
volume of 16,000 tonnes. The profit margin per kg in 2021 was
a substantial NOK 10.91 higher than in 2020. This is the result of
better biological control combined with good marketing of Icelandic
salmon. We have, moreover, strengthened our foundation for further
growth in Iceland through the acquisition of two hatcheries and
have launched a new brand which will strengthen the position of
Icelandic salmon in the market.
In Scotland, SalMar owns Scottish Sea Farms in partnership with
Lerøy Seafood. We have taken an important step to strengthen our
position and presence in this region through the acquisition of Grieg
Seafood Shetland. This will provide a basis for better adjustment
of production and more cost-eective operations in the region.
For 2022, the acquisition is expected to result in a 13,000 tonne
increase in production, to 46,000 in total.
Important initiatives on the financing side reflect our ambition to
take a leading environment-based growth position. We now have
green financing in place, with clear environmental KPIs. In total,
we entered into new green financing agreements worth NOK 7.5
billion in 2021 by refinancing existing credit facilities and the issue
of a new green bond.
SalMar Aker Ocean – aquaculture moves oshore
SalMar has devoted substantial resources to fish farming in areas
that are too exposed to harsh weather conditions, with high winds
and waves, for traditional coastal aquaculture equipment to be used.
For SalMar, there is no contradiction between coastal and oshore
aquaculture. On the contrary, today’s fish farming has given us the
competence and financial strength to invest in our first Ocean Farm.
Going forward, however, it will be necessary to start using the vast
areas of ocean encompassed by the Norwegian economic zone to
ensure that Norway can retain its position as the leading producer
of Atlantic salmon. Atlantic salmon belong in the North Atlantic
waters along the coast of Norway, and nowhere else in the world
has such good conditions for environmentally sustainable production
of Atlantic salmon – on the salmon’s own biological terms.
Apart from the suitable areas along its coastline, Norway has the
world’s strongest competence environments for both aquaculture
and oshore equipment technology. It is therefore extremely grat-
ifying that SalMar and Aker – both world leaders in each of these
sectors – agreed in August 2021 to enter into a partnership to
further develop oshore fish farming. Both enterprises will channel
their eorts in the area through the company SalMar Aker Ocean,
in which Aker will eventually hold a 33.34 per cent stake. The com-
pany has recruited some of the best people around to realise this
important task.
SalMar and Aker have great plans for SalMar Aker Ocean, but are also
dependent on the authorities establishing a competitive framework
for oshore aquaculture. The government has drawn up a proposed
framework for the allocation of sites and production licences in the
open ocean, which is currently the subject of a consultation process.
For the Norwegian aquaculture industry, it is important that the
government, as announced, ensure this work makes rapid progress.
The establishment of a dedicated licensing scheme for oshore
aquaculture is also a clear obligation in the government’s Hurdal
policy platform. It is vital that the government prioritises this work,
so that Norway can retain an important competitive advantage over
major competitor countries, where significant eort is being put into
both onshore and oshore fish farming.
NTS + SalMar – the perfect match
SalMar has made a voluntary oer to purchase all outstanding shares
in NTS ASA. The two companies are among the most important
contributors to value creation and employment along the Norwegian
coast, from Møre to the Russian border. Combined, the two companies
will be in an even stronger position to create value and jobs along
the coast. It is a journey into the future that SalMar wishes to take
together with NTS’s owners.
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This is SalMar Message From the CEO
The oer falls naturally into line with the strategy SalMar has pur-
sued since it started up with a single salmon production licence and
a few employees in a workman’s hut on Nordskaget in 1991. This
strategy has been to expand gradually and steadily. Our ambition has
been to develop the world’s best and most cost-eective aquaculture
company, with the aim of bringing health-promoting seafood to the
entire world. And that is what we have, to a large extent, succeeded
in doing – partly through our own eorts, so-called organic growth,
but also through the acquisition of production licences and mergers
with other companies. We are now going all in to succeed in our
acquisition of NTS. If we are successful, it will be the largest single
expansion in the company’s history.
SalMar and NTS have a number of overlapping industrial activities,
in Central and Northern Norway, the West Fjords of Iceland and o-
shore. This provides a good foundation for eective coordination and
continued sustainable growth in some of the world’s best locations
for the production of salmon. In addition, the two companies are
a good fit culturally. All in all, this represents an excellent starting
point for building something even stronger together, so that one
plus one makes more than two. The merger will increase the power
and value-creating potential of all the steps in the value chain, from
hatchery and production in sea to processing and sales in the inter-
national market. It is precisely these aspects that have led SalMar
to make the above-mentioned oer.
Results
SalMar harvested a record-high volume in all regions in 2021 and
generated record-high revenues. We have never processed a higher
percentage of our output either: 44.7 per cent of our total volume
was processed in Norway in 2021. The annual results are as follows:
SalMar harvested a total volume of 170,500 tonnes in Norway (+13
per cent) and 11,500 tonnes in Iceland (+3 per cent), while the Group
generated gross operating revenues of NOK 15.0 billion (+17 per
cent). Operational EBIT came to NOK 2.9 billion, a scant 3 per cent
down on the year before. Our relative position has therefore never
been stronger. This result reflects a solid biological and operational
performance, enabled by an intense strategic and operational focus
in all parts of the Group. Overall, the volume harvested rose by 20,000
tonnes compared with 2020. At the same time, we maintained the
strong margins from the fish farming segments, with particularly
impressive cost reductions in Northern Norway through the year.
The margins for the Sales and Industry segment were lower in 2021
than the year before, due to somewhat lower price achievement. This
is attributable primarily to the timing of our fixed-price contracts.
Put simply, we misjudged how strong the salmon market would be
through the year. We are naturally not satisfied that we ended up in
this position. However, it does show how strong a position salmon
has in markets worldwide. This, in turn, makes us confident that
demand will remain strong in the time ahead.
All in all, we are satisfied with the results across the value chain,
though there is still room for improvement in all our segments
and regions. As we say at SalMar: what we do today we do better
than yesterday.
Outlook – social responsibility
With the strong global demand for Atlantic salmon, it is dicult not
to take a positive view of the outlook for the aquaculture industry
going forward. But everything that goes up must come down even
-
tually. New forms of production and technological solutions could
form the basis for increased growth and a more even balance in the
market. History has taught us that aquaculture can encounter major
challenges both in terms of markets and biology. This requires us to
have a financially robust industry that can withstand setbacks and
has the capital necessary to invest for the future, as SalMar is doing.
Our most important contribution to society is the jobs we create,
the products we supply to the downstream business community and
the huge export revenues we generate for our country. At the same
time, SalMar and its workforce are among the major taxpayers along
the Norwegian coast. Together, the company and its employees are
estimated to have paid over NOK 1 billion in tax. Our accounts show
that in 2021, SalMar alone has NOK 544 million in tax payables. In
addition, the company paid around NOK 70 million in production
tax to central government and our host municipalities for the use
of coastal areas for food production, as well as several millions in
property tax on our production equipment.
Passing the baton into new hands
This will be the last time I express myself through the Message from
the CEO in SalMar’s annual report. Next year, our newly appointed
CEO Linda Litlekalsøy Aase, will speak on behalf of our fantastic
company. She knows SalMar well, not least from her time on the
company’s Board of Directors. She also has important industrial
experience from a variety of executive positions at Aker Solutions
and Rolls-Royce Marine. It is with great pleasure that I leave the
role of team captain in Linda Aase’s capable hands. I wish her every
success in one of the most inspiring and rewarding jobs in the global
seafood industry. Together with SalMar’s 1,800 employees, she has
the best starting point for bringing the most exciting company in the
world’s most exciting industry to even greater heights.
Gustav Witzøe
8
This is SalMar The History of SalMar
Chapter start Next chapter
The History of SalMar
1992
Acquisition of two licences for the
production of farmed salmon in
Central Norway.
1997
Extension of the plant at
Nordskaget in Frøya to increase
processing capacity.
Kverva Holding AS becomes sole
owner of SalMar.
2001
Total volume harvested:
15,000 tonnes gutted weight.
Establishment of operations
outside Norway through Norskott
Havbruk AS, a50/50 joint venture
with Lerøy Seafood Group.
Norskott Havbruk AS is sole owner
of Scottish Sea Farms Ltd, the UK’s
second -largest salmon producer.
2006
Total volume harvested: 44,000
tonnes gutted weight. Kverva
Holding AS sells 42.5% of the
company’s shares to alimited
number of Norwegian and
international investors.
Acquisition of three new licenses
in Nordmøre.
Acquisition of the remaining 51%
of the shares in Senja Sjøfarm
AS, making SalMar sole owner of
the company.
2008
Total volume harvested: 65,000
tonnes gutted weight. Acquisition
of one licence in Central Norway
(Møre & Romsdal) and one in
Northern Norway (Troms).
Senja Sjøfarm AS is renamed
SalMar Nord AS. The Company
now includes all SalMar’s
operations in Troms.
Acquisition of 34% of the shares in
Volstad Seafood AS.
SalMar is founded in Frøya in
Sør-Trøndelag following the
acquisition of one licence for the
production of farmed salmon and
aharvesting/processing plant from
acompany that had gone into
liquidation. The company’s primary
business was the processing
of frozen salmon. This was the
start of amajor restructuring
of the Norwegian aquaculture
sector, which gradually led to
asubstantial increase in its level of
industrialisation.
1991
Acquisition of Follasmolt AS in
Verran, Nord-Trøndelag. Start of
smolt production. Lease of Kjørsvik
Settefisk’s hatchery in Aure,
Møre & Romsdal.
1995
Total volume harvested:
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. At that time Senja Sjøfarm
had nine production licences and
its own hatchery.
2000
Total volume harvested: 35,000
tonnes gutted weight. Divestment
of operations SalMar does not
consider to be core businesses,
including the production of
herring, herring oil and fish meal.
Greater focus on core business
activities, farming, harvesting and
processing of salmon.
2005
Total volume harvested: 64,000
tonnes gutted weight. SalMar
shares floated on the Oslo Stock
Exchange on 8May 2007.
Acquisition of Halsa Fiskeoppdrett
AS (two licences) and Henden
Fiskeoppdrett AS (two licences) in
Møre & Romsdal.
Acquisition of Arctic Salmon AS
(four licences) in Nordreisa, Troms.
2007
Total volume harvested: 77,000
tonnes gutted weight. Acquisition
of the remaining 66% of the
shares in Volstad Seafood AS,
making SalMar sole owner of
the company.
2009
2010
Total volume harvested: 79,000
tonnes gutted weight. Acquisition
of 75.54% of Rauma Gruppen
AS. Broodfish, two hatcheries
and eight fish farming licenses in
Central Norway (Møre & Romsdal).
Acquisition of 23.29% of the
shares in the listed Faeroe Islands
company Bakkafrost P/f.
Acquisition of Settefisk AS.
This is SalMar The History of SalMar
Chapter start Next chapter
Total volume harvested: 104,000
tonnes gutted weight. Completion
of the world’s most innovative and
ecient salmon harvesting and
processing plant – InnovaMar.
Acquisition of Bringsvor Laks AS
with two licences in Central Norway
(Møre & Romsdal).
Acquisition of Krifo Havbruk AS
with one licence in Central Norway
(Trøndelag).
Leif Inge Nordhammer steps down
as CEO and is replaced by Yngve
Myhre on 6June.
Acquisition of Villa Miljølaks AS with
four licenses in Central Norway
(Møre & Romsdal).
Acquisition of afurther 1.5% of the
shares in Bakkafrost P/f, bringing
SalMar’s total shareholding to 24.8%.
2011
Total volume harvested: 128,000
tonnes -gutted weight. Acquisition of
minority shares in SalMar Rauma AS.
Acquisition of 50.4% of the shares in
Villa Organic AS.
Divestment in Bakkafrost P/f. New
share holding approximately 14.9%.
Divestment of remaining 14.9% of
shares in Bakkafrost P/f.
Following the transaction SalMar has
no shares in Bakkafrost P/f.
2013
Total volume harvested: 150,000
tonnes gutted weight. Principle
approval of the ocean farming pilot.
Completion of acquisition that
ensures an indirect stake of 22.91%
of the shares in the Icelandic farming
company Arnarlax Ehf.
2015
Total volume harvested: 151,000
tonnes gutted weight. On
5September 2017, Ocean Farm1
arrived at its destination in Frohavet,
o the Trøndelag coast
The new smolt production facility in
Senja was completed – capacity 20
million smolt.
2017
Harvest volume 166,200 tonnes
gutted weight including contribution
from Scotland. Increased ownership
of Arnarlax, Iceland largest salmon
farmer, to 59%. Gustav Witzøe new
CEO from October 2019 following
Olav-Andreas Ervik appointment
as new CEO in the newly founded
company SalMar Ocean which
strengthens the focus on oshore
fish farming.
Started construcion of InnovaNor, the
new harvesting and processing plant
on Senja in Northern Norway.
2019
Total volume harvested: 198,200 tonnes
gutted weight. InnovaNor in operation
from Q4 2021, the new harvesting and
processing plant on Senja in Northern
Norway. Upgraded Vikenco in operation
from Q2 2021, our harvesting and
processing plant in southern parts of
Central Norway. Started construction of
a new smolt facility in Central Norway,
Tjuin, and continuing expansion of the
smolt facility on Senja
Secured green financing through new
sustainability linked RCF and issue of
the first green bond. Successful private
placement in SalMar ASA completed in
June 2021. Entered strategic partnership
with Aker through SalMar Aker Ocean to
establish a global oshore aquaculture
company. Increasing our production
capacity in Central Norway through
acquisition 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
2021
2012
Total volume harvested: 116,100
tonnes gutted weight. Acquisition
of 10 licenses in Northern Norway
(Finnmark) from Villa Artic AS.
Acquisition of additional shares in
Bakkafrost P/f, bringing SalMar’s total
shareholding to 25.21%.
2014
Total volume harvested: 154,800
tonnes gutted weight. Yngve Myhre
steps down as CEO and is replaced by
Leif Inge Nordhammer on 20January.
Nordhammer previously served as
SalMar’s CEO for aperiod of 15 years
until he stepped down in 2011.
Acquisition of 8 green licenses.
2016
Total volume harvested:
129,600 tonnes gutted weight.
On 28February 2016, SalMar
was awarded the first eight
aquaculture development
licences for Ocean Farming AS.
SalMar increased its indirect
shareholding in the Icelandic
aquaculture company Arnarlax
Ehf to 34 per cent through
aseries of acquisitions.
On 11May 2016, the board
announced that Trond Williksen would
be taking over as CEO from Leif Inge
Nordhammer. Mr. Nordhammer had
himself requested leave to step down,
having held the position for more than
17 years, spread over two periods.
Mr. Williksen took up the position
on 14November 2016.
2018
Total volume harvested 159,000
tonnes gutted weight including share
from Scotland and Iceland.
Harvesting from Ocean Farm1 – the
worlds first oshore fish farm –
started in September 2018.
Olav-Andreas Ervik took over as
new CEO in April 2018 after Trond
Williksen’s voluntary resignation.
2020
Total volume harvested: 173,500
tonnes gutted weight.
Continuing construction of InnovaNor,
the new harvesting and processing
plant on Senja in Northern Norway
Started construction of the expansion
of the smolt facility on Senja
Successful private placement
and listing of Icelandic Salmon on
Euronext Growth, SalMar’s ownership
reduced to 51 per cent.
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This is SalMar A New Era in Aquaculture
A New Era in Aquaculture
The establishment of salmon farming in the open ocean is an
important part of SalMar’s strategy for sustainable growth and
production of salmon. Salmon farming is a climate-friendly
and eective method of food production. In the open ocean,
it could allow for both increased output and value creation,
as well as encourage innovation and the development of new
technology in the salmon’s natural habitat.
SalMar leads the way for salmon farming in
the open ocean
In 2016 the first eight aquaculture development licences were granted
to Ocean Farming AS, converted to permanent production licenses in
2020, and early in 2019 Mariculture AS was granted eight licences for
the development of an open-ocean aquaculture facility. Both companies
are subsidiaries of SalMar Aker Ocean AS, a subsidiary of SalMar ASA.
The purpose of these licences is to promote increased investment in
sustainability, desired changes in production methods, innovation and
increased overall value creation in salmon farming. The threshold for
being granted a development licence is high. The fact that SalMar has
received such licences is an important testament to the Group’s research
and development eorts. The development licences have been granted
for a period of seven years. However, they may be converted into ordinary
production licences if the Norwegian Directorate of Fisheries’ target
criteria are met.
To strengthen and concentrate its eorts in the area of oshore aqua-
culture, 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 control 33.34%
of SalMar Aker Ocean and SalMar ASA control the remaining 66.66%, with
the purpose of creating the world leading oshore farming company.
SalMar Aker Ocean aims for a production capacity of 150,000 tonnes
of salmon per year at fish farms located in the open ocean within 2030.
Roy Reite was appointed as CEO in SalMar Aker Ocean February 1, 2022.
Reite has valuable experience of international industrial entrepreneurship
and the Norwegian finance sector, and he has in-depth knowledge of the
coastal culture. This provides the insight that is important and necessary
to realise SalMar Aker Ocean’s ambitions.
The Group’s ambition is to retain its leadership in this field, with respect
to both technological advancements and biological salmon production.
In this way it aims to contribute to the environmentally sustainable
development of the Norwegian aquaculture sector. There will be close
cooperation and interaction between the Group’s oshore and tradi-
tional coastal fish farming operations, to ensure that mutual transfer
of knowledge and experience benefits both parts of the business to
produce sustainable salmon.
The world’s first oshore fish farm Ocean Farm1 from its
location in Frohavet outside Frøya
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This is SalMar A New Era in Aquaculture
Ocean Farm 1’s good biological performance
strengthens confidence in oshore fish farming
Ocean Farm 1, which is situated in an area of sea called Frohavet, o the
coast of Frøya, has been a pilot project focusing particularly on biological
conditions and fish welfare. It is a large and challenging project, which has
involved the testing and development of new and innovative equipment
technology that will be of benefit to the whole industry. After 15 months
at sea, the first production cycle was concluded early in 2019. The fish
achieved good growth and a uniform high quality. Few salmon lice were
observed, and it was not necessary to apply any delousing treatments.
At the same time, costs were in line with the Group’s best-performing
traditional sea farms.
A second generation of fish was transferred to Ocean Farm 1 in August
2019, after several measures were implemented based on lessons
learned during the previous production cycle. In August 2020 the fish
was harvested – also this a generation with good growth, low mortality
and production costs as expected. The promising biological results from
the first and second production cycles reinforce our confidence that
farming salmon further out in the ocean is the right direction.
Next step – production in the open ocean
The award of eight development licences for the Smart Fish Farm project
marks a substantial step towards the establishment of aquaculture in the
open ocean. The objective is to locate the fish farm in open water, 20–30
nautical miles o the coast. Nothing similar has ever been attempted
before. An important aspect will be to test the way technology and
biology interact in such exposed surroundings.
In its licence-award letter, the Norwegian Directorate of Fisheries
describes in detail how the concept diers materially from SalMar’s exist
-
ing oshore installation, Ocean Farm 1. It will withstand considerably
more exposed conditions and have twice the capacity. However, the
biggest dierence is that it will have a sealed central column for the
treatment of fish, the control and management of the unit, as well as
an advanced system for the transportation of fish linked to the eight
surrounding production chambers.
This new equipment technology could help to realise the Norwegian gov-
ernment and parliament’s ambition to make Norway the world’s leading
seafood nation. The unit will combine important environmental aspects
of open-net fish farms with closed-containment technology. The Smart
Fish Farm will be largely immune from environmental impact caused by
other fish farms because it can be situated in any exposed area along
the whole Norwegian coast where the outer ocean currents flow. At
the same time, its design allows fish to receive necessary treatments
in a closed environment, from which there are no emissions.
Contributing to sustainable growth and
equipped for R&D
SalMar considers that a precondition for sustainable growth in the
aquaculture sector is the ability to operate in new locations, where sea
temperatures and ocean currents provide optimal biological conditions
for the farming of fish. The purpose of these projects is to develop the
technology that will make this possible, on the salmon’s terms. They
will also be of great significance for the Norwegian aquaculture indus-
try’s long-term competitiveness and will strengthen Norway’s position
as a global leader in oshore fish farming.
Both these projects are equipped to undertake a variety of R&D tasks
relating to biological conditions and fish welfare. As such, they will help
promote further development in the aquaculture sector and the applied
R&D relating to it. It is important that the operational experience provided
by the pilot facilities leads to the industrial-scale construction of this
type of ocean-going fish farms.
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This is SalMar The ABC of Salmon Farming
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This is SalMar The ABC of Salmon Farming
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 fresh-
water 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 aected 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 pro-
cessing 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.
EGGS/FRY
SMOLT GROWTH SALES
MARKET
HARVESTING &
PROCESSING
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This is SalMar SalMar’s Operating Segments
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This is SalMar SalMar’s Operating Segments
SalMar’s Operating Segments
ICELANDIC SALMON
Sea-farm production
No. of licences:
25,200 tonnes MAB
Harvest volume 2021:
11,500 tonnes gutted weight
Smolt production
No. of facilities:
2 smolt facilities in operation
2 smolt facilities in preparation for operation
Production in 2021:
Approx. 4.0 million smolt
FISH FARMING CENTRAL NORWAY
(Møre og Romsdal & Trøndelag)
Sea-farm production
No. of licences:
69,538 tonnes MAB
1
Harvest volume 2021:
110,700 tonnes gutted weight
Smolt and cleaner fish production
No. of facilities:
2 smolt facilities in operation
1 smolt facility under construction
1 cleaner fish facility in operation
Production in 2021:
Approx. 27.5 million smolt
and 1.1 million lumpfish
1 Includes 2 time-limited licenses
FISH FARMING NORTHERN NORWAY
(Troms og Finnmark)
Sea-farm production
No. of licences:
38,251 tonnes MAB
1
Harvest volume 2021:
59,800 tonnes gutted weight
Smolt production
No. of facilities:
1 smolt facility
Production in 2021:
Approx. 14.6 million smolt
1 Includes 1 time-limited licence
SALES & INDUSTRY
Volume sold:
Approx. 186,000 tonnes product weight
Share of secondary processing:
44.7%
No. of harvesting and processing plants:
3 in operation
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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 69,538 tonnes MAB, and also operates several R&D licences in collaboration
with other companies. In 2021 SalMar acquired ownership in both Nekton Havbruk AS and Refsnes Laks
AS increasing the production capacity in the region. The segment has 2 smolt facilities and 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 three regions, south (Møre & Romsdal),
central (Frøya and Hitra) and north (Fosen and Namdalen). The environmental conditions for salmon farming
in this region are very 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-eective 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-eective pro-
ducer of farmed salmon, there is a continuous focus on sub-goals, such as achieving optimal growth with
the lowest feed factor. The company was quick to introduce its own standards and ‘best practices’ in order
to secure increased eciency. 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.
The segment has 2 smolt facilities and 1 cleaner fish facility in Møre & Romsdal and Trøndelag counties.
These units have a high level of expertise with respect to day-to-day operations as well as development/
project management. The production of smolt is currently transitioning to the use of recirculating aqua-
culture systems (RAS) technology. The segment currently employs RAS technology at its largest smolt
facility, Follafoss, located at the head of Trondheimsorden and in May 2021 construction started of a new
RAS smolt facility at Tjuin, not far from Follafoss. In 2021 several of the smaller smolt facilities was sold.
Fish Farming Northern Norway
(Troms og Finnmark)
The segment has 38,251 MAB tonnes for the production of farmed salmon,
of which 1 is a demonstration licence. In addition, SalMar co-operates several
R&D licences. The segment has 1 smolt facility in Senja.
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 two regions: Region South and Region North, which are each
led by a regional manager. The segment’s head oce and administration are located at InnovaNor, our
harvesting and processing facility on Senja.
Over many years, the segment has focused systematically on enhancing the expertise of its workforce and
employs several apprentices. This is an important aspect of SalMar’s recruitment and competence-building
strategy. Remote feeding has been an important focus area for the segment since 2012. 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 1 smolt facility in Senja, which is based on recirculating aquaculture systems (RAS)
technology. Robust, high-quality smolt is a decisive factor for the success of the whole value chain and in
May 2020 construction for the expansion of the facility started with expected completion in 2022 and
expected first smolt delivery in 2023. The expansion will result not only in the capacity to produce a larger
number of 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 eorts. The expansion of SalMar’s smolt production,
as well as a new local harvesting plant going into operation in 2021, InnovaNor, underpin the importance
to the Group of both Fish Farming Northern Norway and the region as a whole.
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This is SalMar SalMar’s Operating Segments
Sales & Industry
Sales & Industry handles the Group’s sales activities and harvesting and pro-
cessing activities in Norway. The segment sold approx. 186,000 tonnes of
salmon and other fish-based products in 2021. Sales activities concentrate
on the markets of Europe, Asia and America. In all, the segment distributes
salmon to around 56 dierent countries. Because SalMar attaches particular
importance to market proximity, the segment has sales oces 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 proxim-
ity to Fish Farming Central Norway’s sea farms. InnovaMar is a modern building covering 17,500m2. It has
an advanced equipment park for harvesting, fileting and portioning. It has the capacity to harvest 75,000
tonnes of salmon annually using a single shift. 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 Q2 2021 upgraded Vikenco came into operation
increasing both harvesting, processing, storage and freezing capacity of the facility.
At the end of 2021 the new harvesting and processing facility in Northern Norway, InnovaNor, came into
operation. This is an important move to strengthen the region as an important industrial engine in the
Group’s development and will contribute to local value creation and new employment opportunities. At the
same time, InnovaNor will provide the same flexibility and immediate capacity, as the Group has at its Inno-
vaMar facility in Central Norway, to harvest fish on the terms of the biology and contributing to optimising
logistics. InnovaNor is the largest and most modern processing facility in Northern Norway covering 20,000
square meters. It has a capacity to harvest 75,000 tonnes of salmon annually using a single shift. The
building incorporates landing, harvesting, processing, packaging, freezing and storage capabilities including
an oce 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 oering to customers in all markets.
Icelandic Salmon
The company successfully completed a private placement in the autumn of
2020 with the following listing on Euronext Growth. At the same time the
segment changed name from Arnarlax to Icelandic Salmon. At the end of
2021 SalMar owned 51% 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 sustainable aquaculture in Iceland. The company
has its headquarters and harvesting plant in Bildudalur in Iceland’s Westords region, in close proximity to
the sea farms located in the surrounding ord systems. In addition, the company has 2 smolt facilities in
operation, and two more in preparation for operation, as well as a sales oce in Reykjavik.
2021 has been a year with significantly improved biological performance of the fish in sea compared to
2020. This has led to improved biological and financial results in 2021.
Farming in Iceland is still in an early phase, and during 2021 important measures have been implemented
in the company that will provide better biological and economic results in the long term. Some highlights in
2021 include acquisition of two smolt facilities increasing the smolt production capacity, launch of a new
brand for Arnarlax-sustainable Icelandic salmon in August 2021 where positive eects are already staring
to materialize, production of filets for sale to the market expanding the product portfolio and use of a new
boat transportation route to the east coast of US reducing carbon footprint for transportation.
SalMar together with Icelandic Salmon has a strong belief in sustainable aquaculture production in Iceland.
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This is SalMar SalMar’s Cultural Tenets
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This is SalMar SalMar’s Cultural Tenets
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 aected 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 eciency and safe food production.
What we do today we do better than yesterday
To be the most cost-eective 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.
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.
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.
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This is SalMar Passion for Salmon
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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 anew 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 afocus on outcomes to afocus 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-eective producer of farmed salmon in the world.
This new vision and ambition depend on the existence of awinning
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.
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Sustainability and Corporate Responsibility
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Sustainability and Corporate Responsibility
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SUSTAINABILITY
AND CORPORATE
RESPONSIBILITY
Sustainability in Everything We Do 20
Fish 25
Environment & Technology 37
People & Society 49
GRI Index and Third-Party Verification 180
SalMar believes it is important to recognise what sustainability is actually about: the future. Sustainability
concerns our children and their grandchildren, but also 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.
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, aording considerable
benefits in the form of space, fresh water 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.
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Sustainability and Corporate Responsibility Sustainability in Everything We Do
Sustainability in Everything We Do
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 developing 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 there being 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.
In 2021, SalMar continued its eorts to report on sustainability, and this is the eighth report in suc-
cession. As in 2020, the report for 2021 has undergone third-party verification from Ernst and Young,
see appendix for verification report. The report encompasses those businesses in which SalMar held
more than 50 per cent of the shares and/or had operating control in 2021, and as such is included in
the consolidated accounts. Scottish Sea Farms which is an associated company of SalMar through the
company Norskott Havbruk, is not included in the sustainability reporting.
The report has been prepared on the basis of the principles required by the Global Reporting Initiative
(GRI). The final chapter contains an overview of our reporting in relation to the GRI Index.
The bulk of this report is divided into the three central pillars on which SalMar rests its focus about
sustainability throughout the value chain.
Please address any queries about the report to SalMar’s Head of IR Håkon Husby, or Head of Sustain-
ability Mats Wærøe Langseth.
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.
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Sustainability and Corporate Responsibility Sustainability in Everything We Do
Our Principles
SalMar’s facilities are situated in rural areas along the coast of Norway and Iceland, with clean water and
good natural conditions for the salmon. Large and small coastal communities are important bases for
SalMar’s workforce and operations. The Group is conscious of the benefits it derives from the commu-
nities and environment along the coast. This recognition underpins SalMar’s systematic eorts to fulfil
its responsibilities as an employer, producer, supplier of healthy food, user of the natural environment
and administrator of financial and intellectual capital.
Producing salmon under optimal environmental conditions is crucial for the fish’s health and welfare. To
protect the environment and facilitate long-term operations, extensive monitoring and R&D activities
are undertaken. Every part of the operation is risk assessed in terms of sustainability, and appropriate
measures are set out in procedures and instructions. To monitor compliance with the guidelines that
have been drawn up for sound operations, measurements are taken and internal audits performed.
Leadership of SalMar’s sustainability endeavours
The Group’s CEO is ultimately responsible for SalMar’s environmental footprint and for its eorts to
increase its sustainability. SalMar has dedicated quality departments, which monitor and assess the
work being done within this area. However, the activity is coordinated by management teams within
the segments Fish Farming, and Sales and Industry with the support of qualified professionals. System-
atic risk and opportunity assessments are carried out at the overarching level and in all departments
to ensure that SalMar as a group takes a precautionary approach and is able to implement necessary
measures. This also includes climate-related risk. The same applies to the Group’s subsidiaries where
SalMar’s presence on the board of directors ensures that this is taken into account.
Management of each department is responsible for ensuring that monitoring activities are performed
and reported, and the quality managers at the various companies follow up and support departmental
and operative leaders in this area. Quality managers and other quality assurance sta take an active part
in regular management meetings at all levels in these companies. Quality, safety, working environment,
fish welfare and the environment/climate are regular issues discussed at these meetings.
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Dialogue with stakeholders
SalMar has a number of dierent stakeholders and is keen to maintain
a good dialogue with all of them, for example, through face-to-face
meetings, the media, interim and annual reports, stock market notices,
GRI reports, adverts, R&D projects and our website www.salmar.no.
Dialogue with stakeholders takes place both locally and at the cor-
porate level. Understanding that we can only succeed if we work
together and treat each other with candour and respect is an explicit
part of SalMar’s principles for all dialogue.
The stakeholders to be included in SalMar’s future sustainability
reporting eorts are determined by the extent of their influence over
the organisation. We aim to engage our stakeholders in an eective
manner, while ensuring that they experience their contact with SalMar
as providing added value. Important steps in the process include
winning acceptance for the issues selected, illuminating dierent
perspectives with regard to impact, identifying challenges, accumu-
lating external impressions and sharing knowledge.
The identification of stakeholders with whom SalMar will engage in
dialogue results from several processes:
• Public authorities which administer the public interest in
the area and grant licences to operate.
• 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
Open and transparent reporting
Open and transparent reporting of our performance increases our
stakeholders’ trust in us. In 2021, we continued our eorts 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). The table below shows the various ways
SalMar reports on sustainability-related matters.
Reporting method Comment
Annual report
Integrated report combining sustainability
reporting with financial reporting.
Quarterly reports
Quarterly update of financial
and operational results.
Green bond report
For the use of proceeds from the green
bond SalMar will issue a report outlining
how the proceeds have been used in
accordance with the green bond framework.
CDP report
Reporting of strategy, climate and
energy accounts, with associated
initiatives and improvements. SalMar
reported to the CDP Climate Change in
2021 and will do so again for 2022.
In 2021 SalMar received a score of B for its
CDP Climate Change 2021 response and an A-
score for the CDP Supplier engagement report
2021. SalMar are also considering reporting
to the CDP Forests and Water Security.
ASC reports
Audit reports from our ASC-certified
sites are available on our website
or at www.asc-aqua.org.
Green licences
A separate annual report is published
on SalMar’s experience and evaluation
of its operations under green licences.
This is available on our website.
www.salmar.no
Our website is updated regularly. Here
you will find relevant information.
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Materiality assessment
For SalMar, it is important to continue focusing on those areas where
our operations have the greatest potential to aect fish, the environ-
ment or people. In connection to our 2021 report, we use the same
materiality assessment as in the 2020 reporting. SalMar is considering
to update the assessment for next year's reporting.
The aspects identified as material underpin what we cover 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
•
Recycling and waste management
•
Fish escapes
•
Fish welfare
•
Safe and healthy food
•
Salmon lice
•
Sustainable feed
•
GHG emissions
•
Site environment status
•
Human rights
•
Regulatory compliance
•
Safe and secure workplaces
Important
•
Collaboration with others
•
Equality
•
Degree of secondary processing
•
Research & development
•
Local value creation
Important Material
Significance for SalMar
Fish
Environment and Technology
People and Society
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SalMar supports the UN’s 17 Sustainable Development Goals
In everything we do, our actions and initiatives support one or more
of the UN’s 17 Sustainable Development Goals (SDG). Nevertheless,
we wish to focus on the entirety of our operations, since we believe
that this explains our eorts better than individual SDGs seen in iso-
lation. Some SDGs are nevertheless clearly more relevant than others
as focus areas where the Group can make the greatest contribution.
2 Zero hunger and 3 Good health and well-being
SalMar shall contribute with sustainable food. Salmon is a healthy
source of protein, an important source of omega-3 and a good source
of vitamins and minerals. By exploiting the potential of the sea, we
also contribute to security of food supply.
12 Responsible consumption and production
Sustainable and ecient exploitation of our natural resources is
a precondition for our operations. We will contribute to responsible
production by reducing our consumption of resources and minimis-
ing food waste.
13 Climate action
Food production accounts for a large part of the world’s greenhouse
gas emissions. Salmon has a low carbon and water footprint compared
with other sources of protein. We will contribute to further reductions
in our supply chain’s carbon footprint. SalMar will take its share of the
responsibility by ensuring that climate considerations is an integral
part of our strategy and planning processes.
14 Life below water
We will utilize the sea areas we operate in a sustainable manner. We
will contribute to the reduction of marine garbage and discharges, both
by reducing and handling our own waste properly, but also through
our engagement in all the local coastal communities of which we
are a part of.
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Sustainability and Corporate Responsibility Fish
Fish
“Passion for Salmon” is the foundation of SalMar’s entire business.
Our goal is to produce sustainable and healthy protein for a steadily
growing global population. And we will do so with the salmon in focus.
Sustainable salmon farming therefore takes place on the fish’s terms.
This means that the salmon must come first in all aspects of our work.
SalMar is working systematically on initiatives and procedures relating
to fish welfare. At the same time, we know that every single decision
we make relating to the fish’s health also has a financial, social and
environmental impact throughout the value chain. Fish welfare is
a good example of SalMar’s holistic approach and shows why sus-
tainable aquaculture must always begin with the salmon.
Our KPIs
SalMar Icelandic Salmon
Target 2021 2020 2019 2021 2020 2019
Survival 12-month rolling survival rate
1
>97% 95.0% 95.6% 95.3% 93.3% 90.5% 91.2%
Antibiotics
Grams of active pharmaceutical
ingredient (API) / tonne produced
0 0 0 0.07 0 0 0
Lice No. observations over the lice limit 0% 2.2% 2.2% 3.3% 12.8% NA NA
Interaction
with wildlife
2
Birds – Accidental mortality 0 0.47 0.51 0.65 0.17 0.71 0.67
Birds – Euthanised 0 0.16 0.07 0 0 0.29 0
Marine mammals – Accidental mortality 0 0 0.01 0 0 0 0
Marine mammals – Euthanised 0 0 0 0 0 0 0
Fish escapes
No. of incidents 0 3 10 6 0 0 1
No. of escaped fish 0 224 20,645 5,907 0 0 185,885
3
Feed
Certification of marine
ingredients in fish feed
4
100% 99% 99% 99% 98% 99%
Certification of soya ingredients in fish feed
5
100% 100% 100% 100% 100% 100%
FFDR (Fish meal)
6
<1.2 0.36 0.49 0.41 0.32 0.63
FFDR (Fish oil)
6
<2.52 1.64 1.68 2.24 1.56 1.98
Economic feed conversion ratio < 1.13 1.19 1.16 1.19 1.30 1.43
Certification Share of active sites certified
7
100% 100% 100% 100% 83% 86% 100%
1 12-month rolling mortality measured in accordance with the Global Salmon Initiative’s methodology.
2 Total number of interactions per fish farm
3 The incident occurred at the hatchery in Bæjarvik, where fry weighing approx. 2 g escaped.
4 Fish meal, certified in accordance with Marintrust, MSC or equivalent.
5 Certified in accordance with Proterra RS, European Soy or equivalent.
6 Target in accordance with ASC certification requirements.
7 Farming sites certified in accordance with GlobalGap, Debio or ASC.
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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
eorts to ensure that the fish’s welfare is safeguarded by providing
them with optimal conditions throughout their lifecycle.
How we promote fish welfare
• SalMar has dedicated fish health personnel, who work
locally, regionally and at the corporate level.
• Systematic eorts at the generational level and down
to each individual group of fish, with specifically tailored
actions taken.
• Close follow-up and monitoring of fish welfare indicators.
• Use of sites with optimal biological conditions.
• All smolt are vaccinated before being transferred
to sea farms.
• Systematic eorts with regard to smolt quality at our
hatcheries, through a focus on stable supplies of good
quality water, a good tank environment for the fish, optimal
oxygenation, good sorting and vaccination procedures,
temperature control and general fish health.
• All delousing treatments are carried out by a dedicated
team, with a risk assessment performed before
each operation.
• Strict routines for handling of fish and transport between
dierent zones and sites to prevent the spread of disease.
• Access to large harvesting capacity at plants located near
our sea farms, with associated wellboat capacity.
• Humane slaughter by percussive stunning.
• Continuous improvement through employee
training and R&D.
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Sustainability and Corporate Responsibility Fish
We strive to increase our fish’s survival rate
In our opinion, the best indicator of fish welfare is their rate of survival
from the time they are transferred to our sea farms until they are
harvested. In this sustainability report, we use a 12-month rolling
survival rate, measured in absolute numbers, in accordance with the
Global Salmon Initiative’s methodology.
Over the last years SalMar has achieved over 95 per cent survival
rate in Norway, therefore our target for survival rate was raised to
97 per cent in Norway in 2021. Our target in Iceland is still at 95
per cent. Both targets are time-bound with an aim of reaching both
levels within 2025.
SalMar achieved a slightly lower survival rate in Norway in 2021, but
a significantly higher rate in Iceland. Over the last years the survival
rate trend is positive in Norway with a continuously increasing 3-year
moving average.
We know that smolt quality, infectious diseases and fish handling are
the primary causes of mortality. In 2021, we continued made progress
in our eorts to improve smolt quality and fish handling in connection
with delousing treatments. We recognise that we still need to work
on our management of diseases such as PD, HSMI and CMS, as well
as gill health, but we see positive eects of vaccination against PD.
We promote cleaner fish welfare
SalMar produce in-house cleaner fish for risk-based use to combat
salmon lice in the salmon sea phase. The amount 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
has dedicated feed for cleaner fish which helps them grow and stay
healthy while carrying out their main function. 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,
living conditions, etc.
We prevent antibiotic resistance
In 2021, no antibiotics were used at SalMar’s fish farms in Norway
or Iceland. This demonstrates that the use of no antibiotics is con-
tinuing. SalMar has a clear policy to not use any form of antibiotics
to promote growth.
Important steps to keep down the use of antibiotics include the vac-
cination 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.
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.
The fish have plenty of space
As regulated by the current legislation in both Norway and Iceland,
maximum density is 25 kg /m3 (2.5%) for conventional salmon and
10 kg/m3 (1%) for organic salmon. SalMar complies with this in all
geographies, and on average the density in each individual net pen
is 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.
94.1 %
94.3 %
95.3 %
95.6 %
95.0 %
Target Norway
97.0 %
91.2 %
90.5 %
93.3 %
Target Iceland
95.0 %
Norway Target Norway Iceland Target Iceland
Trend and target survival rate
97.5% water
2.5% fish
Survival rate (trend and target)
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Sustainability and Corporate Responsibility Fish
We keep the number of salmon lice down
Salmon lice are natural seawater parasites. As a fish farmer, it is our
task to make sure that the salmon can coexist with the lice. Salmon
lice can impair the quality of the salmon’s flesh and can, in the worst
cases, lead to disease and death. We therefore work preventively to
keep lice numbers down and implement treatment regimes that are
gentle on the fish and the wider environment.
Our goal of keeping within the thresholds laid down in the regulations
remains unchanged. In 2021, SalMar has worked systematically to keep
control of salmon lice at our sites. On average, salmon lice numbers
were slightly higher in 2021 than in 2020.
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 freely available at
www.barentswatch.no. In 2021, 2.2 per cent of SalMar’s observations
showed numbers exceeded the lice threshold. This is the same level
as in 2020, but lower than in previous years.
In the fall of 2021, a similar regulation for maximum permitted number
of lice were imposed in Iceland. The number is capped at 0.5 adult
female lice per fish and counting shall be done at least weekly in the
sensitive period from week 14 to 22 and at least bi-weekly outside
of this period when sea temperatures are higher than 4°C. Therefore,
for the first time the KPI is included from 2021. In 2021, 12.8 per
cent of the observations exceeded the sea lice limit.
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.
The use of cleaner fish has been reduced the last years. In addition,
SalMar has established its own internal capacity for non-medicinal
delousing. We are working systematically to reduce the mortality
rate. This includes tightening up our risk assessments before and
during treatment and performing evaluations after treatment has
been completed. Fish welfare is our main focus, and new tools are
being developed to improve these work processes.
Eorts to improve our technical equipment to make it gentler and
to develop eective tools (indicators) that can help us better pre-
dict the status of the fish’s welfare, were ongoing in 2021, and will
continue in 2022. In 2022 we also took into use treatment methods
such as CleanTreat and continued our investment in increased treat-
ment capacity.
Visualisation of SalMar’s anti-lice strategy
Medi-
cation
Medication
zeroemissions
Active operations
Non-medicinal treatment
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
2021202020192018
Average no. of adult female lice per week at SalMar
0.0
0.1
0.2
0.3
0.4
52515049484746454443424140393837363534333231302928272625242322212019181716151413121110987654321
WEEK
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We prevent and limit fish escapes
SalMar has a zero-vision with respect to fish escapes for all operating
years and takes all such incidents seriously. In 2021, SalMar had 3
reported incidents in Norway and none in Iceland. A total of 224 fish
escaped from our facilities in Norway, which corresponds to less than
0.0004 per cent of all the fish SalMar had at its sea farms.
The authorities were informed of the incidents at an early stage and
non-conformance analyses were performed accordingly. Relevant
remedial measures were then implemented. SalMar continues to strive
every day to prevent fish from escaping. This means focusing on day-
to-day routines for monitoring 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
environments on the development of more secure equipment.
SalMar notes that damage to net pens was the root to several escape
incidents especially in 2020. For the last years, we have therefore been
working with our net pen supplier to test several dierent types of
pens. The objective is to find a type that provides better protection
against fish escapes. We believe that we have found a pen type that
gives even better protection against escapes, while also providing
additional environmental benefits. SalMar has therefore embarked
on an aggressive programme of investment to reduce the number of
incidents relating to its net pens, despite the fact that our current
pens are certified and subject to strict control routines. Over NOK
75 million has and will be spent on the purchase of new net pens.
Together with the aquaculture sector, the supply industry, the Nor-
wegian Directorate of Fisheries and Standards Norway, SalMar has
revised the technical standard for floating aquaculture facilities. Once
in force, it will help make the facilities even more capable of preventing
fish escapes.
Partnership for wild salmon
SalMar cares about wild salmon, too. And we are keen to ensure that
aquaculture can coexist with those who make their living from wild
salmon fishing in those areas in which we operate. SalMar is engaged
in numerous projects whose objective is to monitor the situation for
wild salmon, and record and trace any escaped farmed salmon.
Over several years, SalMar has been a partner in the Rivers around
Trondheimsord (ERT) project.
1
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. The project results show that a low level of farmed fish
(0.8 per cent in 2021) has been found in the rivers examined.
In Troms, we are participating in the Wild Salmon Industry Collaboration
Project. The project covers the following rivers and watercourses:
Brøstadelva, Tennelva, Ånderelva, Grasmyrvassdraget and Salangs-
vassdraget. The purpose of the project is to monitor the status of
the rivers and implement measures to increase the number of wild
salmon in them. In addition, we work closely with Laukhelle Lakselv
in Senja with respect to monitoring and emergency preparedness.
The same applies to Målselv.
With regard to advice and practical initiatives relating to wild salmon,
we also work closely with NINA, Ferskvannsbiologen and Skandinavisk
Miljøundersøkelser AS.
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
1 The project: “Elvene Rundt Trondheimsorden og SalMar ASA”.
www.vetinst.no
parent fish’s DNA). This will make it possible to trace escaped farmed
fish back to their owner. Eorts to achieve this capability have been
underway for several years.
OURO
2
is a joint industry initiative which was set up in 2015 in
response to statutory regulations requiring action to reduce the
genetic impact of farmed salmon on wild fish stocks by culling all
escaped farmed salmon in rivers where their numbers are unaccept-
ably high. The OURO initiative’s activities are funded by the aqua-
culture industry.
We impact wildlife as little as possible
For SalMar, it is very important to have as little impact on wildlife as
possible, and we are working actively to prevent this. However, our
presence will sometimes aect other animals. In 2021, we experienced
a small number of incidents both in Norway and Iceland.
We seek to use equipment at our sites that minimises the risk of harm
to wildlife. We will continue working to reduce the number of such
incidents in 2022.
2 http://utfisking.no
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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 ingredients are not genetically modified, have not been produced
in areas threatened by deforestation and do not depend on endangered fish stocks.
SalMar uses an all-round feed that optimises production and promotes good fish health. In other words,
a high-value salmon feed that ensures good growth, a low feed factor and meets the fishes’ nutritional
needs. In 2021, around 250,000 tonnes of dry feed pellets were used in SalMar’s salmon farming
operations in Norway, and 22,000 tonnes in Iceland.
In addition to monitoring their ingredients, SalMar also checks the nutritional value of the feed used at
its hatcheries and sea farms. This is verified through their fat, protein, phosphorous and fibre content.
SalMar performs routine controls on the feed's physical quality on receipt to identify non-conformances.
How we safeguard our fish feed
• SalMar demands that all fish feed is certified. In 2021, 99% was certified.
• All the fish feed used is deforestation-free, not genetically modified and not dependant on
endangered fish stocks.
• 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.
• 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.
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We use certified ingredients
Marine ingredients currently make up approx. 20–30 per cent of the
fish feed. 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 2021, 99 per cent of the marine ingredients
used by our main fish feed suppliers came from certified fish stocks.
Vegetable raw materials have become an important ingredient in fish
feed. Vegetable-based proteins currently make up 35–45 per cent of
the feed. At SalMar, we require our feed suppliers to purchase soy from
sustainable sources that are certified in accordance with ProTerra,
Europe Soya or an equivalent environmental standard. In 2021, all
our feed suppliers used only certified soy in their feed basket. This
means that the soy is not farmed in areas threatened with deforest-
ation and has not been genetically modified. In addition, early in
2022 an independent external report conducted by Brazilian auditors
concluded that all Brazilian suppliers of soy to the Norwegian salmon
farming industry have accomplished their goal for a deforestation and
conversion free supply chain.
Through our engagement with our feed suppliers, we have full trace-
ability of the origin of all feed ingredients used in the feed both direct
suppliers and indirect suppliers of feed ingredients. Internally in SalMar
we perform audits towards our feed suppliers making sure that all the
ingredients used in the fish feed originates from sustainably sourced
producers in the value chain. SalMar are also regularly conducting risk
assessments identifying how the availability of marine, soy and other
ingredients going forward may impact production.
We actively research and test novel feed ingredients
SalMar actively seeks and participates in projects concerning novel
feed ingredients. In order to minimize footprint of feed ingredients
(e.g., soy), SalMar continuously test and evaluate novel and local feed
ingredients such as algae, insect meal, kelp, salmon oil, seafood trim-
mings and excess raw material from processing.
We ensure low dependence on wild fish stocks
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 from small pelagic fisheries 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 on the basis of a globally limited supply of marine
raw materials.
According to the ASC standard, feed is deemed to be sustainable if
its FFDR (fish meal) is <1.2 and its FFDR (fish oil) is <2.52. In 2021,
SalMar’s Norwegian and Icelandic operations both achieved values
well below these levels.
By volume, the largest sources of marine ingredients in the feed
produced by our main suppliers were herring and whitefish ocuts,
blue whiting, bony fish and anchovy. See the feed suppliers’ own
sustainability reports for further details.
1
1
Skretting: https://www.skretting.com/en/sustainability/sustainability-reporting/ Cargill Aqua Nutrition: https://www.cargill.com/sustainability/aquaculture/
aquaculture-sustainability-reporting
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We ensure ecient feed utilisation
The nutritional value, consistency and taste of the feed are important.
Equally important, however, is correct dosing to ensure that the feed
is utilised as eectively as possible and keeps the fish healthy.
Eective feed utilisation is one of the key performance indicators
that we follow up all the time. The benefits achieved through correct
feeding include optimal growth, a low feed conversion ratio, reduced
emissions to the environment, good fish welfare, increased resistance
to disease, low mortality, less size variations, increased yield at harvest,
less excess spill to the sea, and better fish quality.
For this reason, the feed conversion ratio is one of the most important
KPIs in our sustainability eorts. In 2021, SalMar performed slightly
better than in previous years on Iceland, but slightly worse compared
to 2020 in Norway.
Feeding is tailored to the fish’s appetite in each individual net pen. It
is monitored using underwater CCTV cameras, state of the art tech-
nology that shows where in the water column the fish are located,
and weight checks. In this way, optimal feeding is achieved. In 2021,
we worked to optimise feeding at our production sites. We have
continued to focus on optimising feeding during the fish’s first 12
weeks at sea and providing the greatest amount of feed availability
during this period. This is important to raise healthy and robust fish.
In 2021, we continued to focus on the developing of feeding cen-
tres that remotely control the feeding of our fish stocks. By bringing
skilled sta together in one place, we are further developing the
“control room” and facilitating the implementation of new routines
and continuous learning. By the close of the year, we had four such
feeding centres each remotely feeding several sites from their control
rooms. Our feeding centres are located at Finnsnes, Fosen and Smøla
in Norway, with an additional one 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 eective 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 continuing to
work on. In partnership with Telenor, we boosted our data transfer
capacity through the installation of 5G at several of our sites in 2020.
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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 their quality is maintained through the whole value
chain until the salmon reaches the customer.
It is our responsibility to ensure our customers feel safe when they
eat salmon from SalMar and know that it has a healthy nutritional con-
tent. For this reason, we are certified in accordance with the strictest
requirements and guidelines for sustainable aquaculture, including the
Aquaculture Stewardship Council (ASC) and Debio.
How we provide safe and healthy food to all
our customers
• Local processing makes it possible for SalMar to oer
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.
• Thorough training at all levels and training in routines and
procedures are important to maintain 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.
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SalMar’s whole value chain is certified from roe to plate
We aim to operate in an honest, proper and trustworthy manner, and take pride in showing o what
we do. We have therefore certified our operations in accordance with the strictest requirements and
guidelines. Compliance with such third-party standards, as well as those set by our customers, is verified
through the follow-up of our operations. This is in addition to the follow-up undertaken by government
and regulatory authorities.
Global
G.A.P.
Debio ASC
Kosher
BRC IFS MSC
Whole value chain Harvesting/processing Sales
All our sea farms in Norway are certified in accordance with Global G.A.P.
1
In addition, several of our sea
farms are certified in accordance with ASC or Debio
2
. SalMar’s goal is for all its sea farms to be either
ASC or Debio-certified by 2025. In 2021, 59 per cent of our sites in Norway and 83 per cent of our
sites in Iceland were ASC-certified.
The Aquaculture Stewardship Council (ASC) is an independent, international 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 eective market mechanisms that create
value along the entire value chain. By choosing ASC-certified salmon, consumers can be assured that
they are buying salmon from a responsible farmer.
With more than 400 auditing criteria within seven main categories, the ASC Standard is dicult to
reach and to retain. It demands substantial 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.
1 https://www.globalgap.org/
2 https://debio.no/english/
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Salmon is a healthy and delicious food
Salmon contains a number of nutrients which make it an important
part of a balanced diet. Salmon is a healthy and delicious food. It is
one of the most rigorously investigated foodstus 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 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
sucient 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 eects of eating seafood far outweigh any
potentially negative impact.
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When you buy salmon from SalMar, you can be sure 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
1
or search the Food Composition Table
2
.
SalMar produces healthy and tasty foods that are easy to prepare.
SalMar’s products are based on first-class raw materials, and the quality
is maintained right through the value chain until the salmon reaches
the consumer. Thorough training at all levels with regard to procedures
is important to maintain the high quality of SalMar’s products. Produc-
tion is organised such that the demands of dierent standards 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 2021 SalMar performed 242 internal audits and safety inspections,
this is 85 more than in 2020. In addition, 203 audits from external
parties were conducted, which is 46 more than in 2020.
Food safety and the regulations relating thereto are taken very seri-
ously. In 2021, there was 1 incident of product recall where 107 kg of
products were recalled from the customers. There were no violations
of the regulations governing food safety.
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-
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.
Pre-rigor filet
SalMar supplies both fresh and frozen pre-rigor fillets. SalMar’s focus
on pre-rigor filleting is an important strategy with respect to energy
consumption, transport-related emissions, 100 per cent exploitation
of the raw material and the creation of local jobs.
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 what 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 finely sliced, sashimi-quality fish.
Every single salmon is handpicked, and only the best boneless pieces
of salmon are used. After slicing, the fillets are packed within 1–4 hours
to ensure maximum freshness and taste.
The objective is to oer 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.
1
www.matvaretabellen.no
2
https://sjomatdata.nifes.no/#search/
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Environment & Technology
SalMar’s fundamental principle is to have a minimal footprint in the
areas we operate. Although food production in general accounts for
a large proportion of global greenhouse gas emissions, the farming
of salmon is one of the most environment-friendly ways of pro-
ducing food.
It is SalMar’s intention to be at the forefront in the development of
a more sustainable aquaculture industry. This means protecting the
seas, reducing energy consumption and minimising greenhouse gas
emissions from our operations. By using new technologies and inno-
vations, we are constantly striving to minimise our biological footprint,
in a way that allows us to produce as much salmon as possible on
the salmon’s terms.
Salmon is one of the most sustainable sources of animal protein. This is
due to low carbon emissions, low water consumption and a small space
requirement. Nevertheless, there is a lot we do not know today, which
we may know tomorrow. New knowledge is the key to protecting
natural resources for future generations, while still producing enough
food for a growing global population. SalMar is working systematically
to drive this development forward.
Our KPIs
SalMar Icelandic Salmon
Target 2021 2020 2019 2021 2020 2019
Greenhouse
gas (GHG)
emissions
Scope 1 + 2
(tCO
2
e)
46%
reduction
from 2019
to 2030
1
16,884 16,306 15,141 3,050 1,403 1,549
Intensity Scope 1+2
(kgCO
2
e/tonne produced)
81 87 90 179 103 113
Scope 3
(tCO
2
e)
2
42%
reduction
from 2020
to 2030
1
632,469 619,805 11,919
44,633 45,916
958
Intensity Scope 3
(kgCO
2
e/tonne produced)
3,051 3,296 71 2,621 3,379 70
Onshore
electrical
power
Farming sites supplied by
onshore electrical power
100% 41% 47% 44% 0% 0% 0%
Secondary
processing
Share of secondary processing >42.5% 44.7% 42.0% 39.3% NA NA NA
Site
environment
MOM-B score ≤ 2 100% 88% 93% 97% 50% 100% NA
Consumption
of fresh water
Consumption
(1,000 m
3
)
36,878 50,470 50,533 5,535 5,505 5,456
Intensity
(litres per kg produced biomass)
178 268 300 325 405 397
Smolt Share of smolt from RAS facilities 100% 89% 86% 82% NA NA NA
1 Subject to approval by the Science Based Targets Initiative
2 Before 2020, only wellboat transport and business-related travel were reported under Scope 3, since these are areas over which SalMar had operational control. With
eect from 2020, fish feed, downstream transport, waste and packaging are also included.
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Greenhouse Gas Emissions
A lifecycle study carried out by Sintef Fisheries and Aquaculture and
the Institutet för Livsmedel och Bioteknik i Sverige (SIK), has shown
that salmon production is materially more climate-friendly than the
production of pork or beef. The study showed that the production of
1 kg of farmed salmon contributes half as much carbon equivalents
(CO
2
e) as production of 1 kg of pork, and one-seventh the amount
as 1 kg of beef.
1
The graphs give a general view of the company’s greenhouse gas
emissions converted into CO
2
e which includes the following green-
house gases: CO
2
, CH
4
, N
2
O, SF
6
, HFC and PFC gases. For the first
time, SalMar is also reporting fully on Scope 3. Previously only those
elements over which SalMar had operational control were reported
here.
2
This is important because it shows SalMar’s overall greenhouse
gas emissions; both those over which SalMar has operational control
and those lying outside our own value chain.
Scopes 1 and 2, areas over which SalMar has full operational control,
account for a small proportion of overall emissions, just 2.9 per cent
in 2021. The bulk of the emissions come from Scope 3, with feed and
downstream transport representing the largest individual factors.
The following pages show examples of how SalMar is working along
its entire value chain to reduce its greenhouse gas emissions.
1 Source: Carbon footprint and energy use of Norwegian seafood products
2 Before 2020, only wellboat transport and business-related travel were
reported under Scope 3, since these are areas over which SalMar had
operational control. With eect from 2020, fish feed, downstream transport,
waste and packaging are also included.
Scope 3 greenhouse gas emissions 2021
% av total
Fish feed
65%
Other
0.03%
Upstream transport
3.5%
Waste
0.3%
Packaging
3%
Downstream transport:
28%
88
92
2020
89
2021 2019
14,712
14,168
2,998
2,522
17,709
16,690
2020
17,489
2,445
19,934
2021 2019
Scope 1
Scope 2
Scope 3 greenhouse gas emissions 2021
% of total
Greenhouse gas emissions Scope 1+2
tonnes CO
2
e
Greenhouse gas emission intensity Scope 1+2
kg CO
2
e per tonne produced biomass
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SalMar has pledged to reduce its greenhouse
gas emissions
At the start of 2021, SalMar pledged to
reduce its greenhouse gas emissions in
accordance with the Science Based Tar-
gets Initiative. In this way, we ensure our
emissions are reduced in accordance with
global climate targets and at least within the “Below 1.5°C” scenario.
• Scope 1 and 2: at least 46 per cent reduction in our
greenhouse gas emissions from 2019 to 2030
• Scope 3: at least 42 per cent reduction from 2020 to 2030
An application was sent to the Science Based Targets Initiative in
December 2021 and a meeting has been set up for final approval at
the earliest date possible from Science Based Targets Initiative, 2nd
of August 2022.
Since 2019, our climate intensity from Scope 1 and 2 in Norway has
decreased by 9.4 per cent, while absolute emissions increased by 11.5
per cent. At the same time our production has increased with 23.0 per
cent, showcasing that we have become more ecient.
Since 2020 our climate intensity from Scope 3 in Norway has
decreased with 7.4 per cent, while absolute emissions increased by
2.0 per cent. At the same time our production has increased with 10.2
per cent, showcasing that we have become more ecient.
The following pages show examples of how SalMar is working along
its entire value chain to reduce its greenhouse gas emissions.
Target 1.5C
- 46%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Reduction of greenhouse gas emissions scope 1+2 vs. target
Group and Norway
Target 1.5C Group - Intensity
Norway - Intensity Group - Absolute
Norway - Absolute
Target 1.5C
-42%
-50%
-40%
-30%
-20%
-10%
0%
10%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Reduction of greenhouse gas emissions scope 3 vs. target
Group and Norway
Target 1.5C Group - Intensity
Norway - Intensity Group - Absolute
Norway - Absolute
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Overview of energy and greenhouse gas emissions
SalMar’s energy and climate balance sheet has been prepared by
CEMAsys with assistance from BDO, and the analysis is based on the
recognised GHG protocol
1
. Data is based on data reported from internal
and external systems, where one uses dierent emission factors
2
for
calculation of the greenhouse gas emissions.
SalMar consumed a total of 5,617,125 litres of fossil fuel (214
TJ) and 78,860 MWh of electricity (284 TJ) in Norway in 2021. In
Norway, SalMar has agreements with its primary electricity provider,
which guarantee that the power supplied comes from 100 per cent
re newable sources, representing 73 MWh of the electricity con-
sumed. In addition, waste heat and local power sources are used by
several of our facilities in 2021 this accounted for 87,507 MWh of
energy (315 TJ).
SalMar’s operations in Iceland consumed 1,159,225 litres of fossil fuel
(44 TJ) and 6,094 MWh of electricity (22 TJ) in 2021. All electricity in
Iceland derives from geothermal sources. All the electricity used by
SalMar’s Icelandic operations is therefore from renewable sources. In
addition, district heating from renewable energy sources was also
used, this accounted for 96 MWh of energy (0.3 TJ) 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, depending on which type of
emission factor is used.
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Group SalMar Icelandic Salmon
Target
Status
vs.
Target
2021 2020 2019
Status
vs.
Target
2021 2020 2019 2018 2017 2016 2015 2014
Status
vs.
Target
2021 2020 2019
Energy consumption (TJ)
Direct (scope 1)-
Fossil fuels
259 218 211 214 198 188 198 182 195 173 161 44 21 23
Indirect (scope2)-
Electricity
621 526 491 599 508 478 477 454 154 159 164 22 18 14
Scope 1 + 2
880 744 703 813 706 666 674 636 349 333 325 67 39 37
Greenhouse gas
emissions (GHG tCO
2
e)
Direct (scope 1)-
Fossil fuels
46% reduction
from 2019
to 2030
+23% 17,489 14,712 14,168 +14% 14,440 13,309 12,619 13,276 12,158 13,621 12,350 11,471 +97% 3,050 1,403 1,549
Indirect (scope2)-
Electricity
1
-3% 2,445 2,998 2,522 -3% 2,445 2,998 2,522 2,897 3,019 2,399 2,835 4,137 0 0 0
Scope 1 + 2 +19% 19,934 17,709 16,690 +12% 16,884 16,306 15,141 16,173 15,177 16,020 15,184 15,608 +97% 3,050 1,403 1,549
Scope 3
2
42% reduction
from 2020
to 2030
+2% 677,102 665,721 12,877 +2% 632,469 619,805 11,919 17,159 21,173 12,310 11,149 9,821 -3% 44,633 45,916 958
Total (Scope 1+2+3)
697,036
683,430 29,567
649,353
636,111 27,060 33,332 36,350 28,330 26,333 25,429
47,683
47,319 2,507
Intensity
3
Energy intensity
(GJ/tonn produced)
3.9 3.7 3.9 3.9 3.8 4.0 4.0 3.9 2.7 2.1 2.0 3.9 2.8 2.7
Intensity – Scope 1+2
46% reduction
from 2019
to 2030
-3% 89 88 92 -9% 81 87 90 96 92 122 98 97 +59% 179 103 113
Intensity - Scope 3
42% reduction
from 2020
to 2030
-9% 3,018 3,301 71 -7% 3,051 3,296 71 102 128 93 72 61 -22% 2,621 3,379 70
Intensity - Scope 1+2+3 3,107 3,389 162 3,132 3,382 161 197 220 215 169 158 2,800 3,483 182
1 Location based for Norway, market based GHG emissions are 1,365 tonnes CO
2
e in 2021.
All electricity in Iceland is renewable and location based equals market based, 0 tonnes CO
2
e.
2 Before 2020, only wellboat transport and business-related travel were reported under Scope 3, since these are areas over which SalMar had operational control.
With eect from 2020, fish feed, downstream transport, waste and packaging are also included.
3 All intensities are calculated with tonnes produced biomass, gross growth in sea. Per tonnes produced biomass from 2017. Before 2017 per tonne live weight.
GHG intensities are in kgCO
2
e/tonn produced.
Overview of Energy and Greenhouse Gas Emissions
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We are electrifying the value chain
As part of our eorts to make the aquaculture sector more environ-
ment friendly, SalMar aims to be more energy ecient. Using electricity
from onshore to power our sea farms and the electrification of the
boats we use are among the areas we are actively working on. Elec-
trifying our value chain will be the biggest contributor to a reduction
in Scope 1 emissions.
In recent years, SalMar has been engaged in a project to lay power
cables from onshore to several of our sea farms. A total of 31 sea
farms have now been electrified in this way. In 2021, this represented
41 per cent of our active sea farms. Not only does electrification
result in a significant reduction in diesel consumption, as well as fewer
emissions to the environment, it also has an important occupational
health impact through reduced noise from diesel generators.
Going forward, we will continue to connect additional barges to
onshore electricity sources. At the same time, we will start using
hybrid technology at sites located too far away from areas where
this is feasible.
In 2016, SalMar started using the world’s first fully electric aquaculture
work boat. Named the Elfrida, the work boat is currently used at one
of our sites in Møre & Romsdal County. In 2020, SalMar started using
the world’s first battery-hybrid wellboat, the RoVision.
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 gas emissions, e.g., hydrogen.
We use local energy and water resources
As part of its energy-eciency eorts, the Group prefers to use
local water-borne energy resources. We always seek to exploit such
resources at our facilities.
Follafoss, our largest hatchery, uses heat exchangers to exploit the
energy from the wastewater produced by the cellulose plant located
next door. Energy corresponding to around 20 million kWh is extracted
in this way, which reduces SalMar’s energy consumption. The hatch-
ery’s production water is obtained from the Follafoss Power Plant.
A turbine has been installed in the supply pipe to the hatchery. As
a result, up to 1.5 MW of electrical power is derived from the water
supply before the water is used for fish production.
Our Kjørsvikbugen hatchery in Aure makes use of the water used to
cool a methanol plant at Tjeldbergodden. Surplus heat from methanol
production is used to heat SalMar’s facility. This provides around 48
million kWH of energy per year.
Iceland has certain natural advantages deriving from geothermal
energy sources. This is exploited by the hatcheries, which use geo-
thermal heat exchangers to warm their intake water, thereby cutting
their energy requirement.
We make eective use of our fish feed
Fish feed accounts for 65 per cent of our Scope 3 emissions. To reduce
our overall greenhouse gas emissions, it is therefore crucial to increase
the eciency of our feed consumption, use novel feed ingredients in
our feed and reduce carbon footprint of the feed ingredients.
In 2021, SalMar reduced its carbon footprint from feed with 2 per cent
compared with 2020. This is despite an increase in feed use and due
to a lower carbon footprint of the feed used of almost 14 per cent.
This showcases that focus on feed ingredients and their origin is vital
to reduce the carbon footprint from feed.
SalMar is always ready to adopt innovative solutions across operations
if deemed fit. We are currently involved in several innovative projects,
for instance regarding use of local feed ingredients as an initiative
to reduce the carbon footprint. In addition, we are working actively
to continuously improve our feed conversion ratio. This contributes
towards lowering farming emissions. See the section on sustainable
feed earlier in this report for further details.
We are cutting emissions by investing in local
processing and new methods of transport
Local harvesting and processing is an important focus area for SalMar.
The processing of salmon reduces both the weight and volume of
the products to be transported, which cuts transport-related carbon
emissions. By locating both harvesting and secondary processing in
Norway, we are also contributing to local value creation and providing
more employment opportunities.
In 2021, 44.7 per cent of our harvested vol-
ume was processed locally in Norway. This
has reduced emissions by 52,000 tonnes
CO
2
e or 22 per cent, compared with 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.
This clearly demonstrates that our focus on local secondary processing
is an important factor in reducing greenhouse gas emissions. And we
have expanded our local processing capacity in 2021. InnovaMar, our
main harvesting and processing plant, is fully operational 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 new harvesting and processing plant in Northern
Norway, came into operation at the end of 2021.
SalMar is also testing new methods of transport to the market. We
are working on several new transport projects that combine various
methods of transport. New partnerships are being developed, and in
Reduction in GHG
emissions due to
local processing
52,000
tonnes CO
2
e
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the next few years the company expects to realise projects involving
a combination of sea, rail and road transport. We already have a dedi-
cated cargo ship service from Central Norway to the continent, and we
also started transporting our products by rail from Northern Norway.
In 2021 a new boat transportation route from Iceland to the east
coast of the US started, 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
dierent farming technologies
At the end of 2021 SalMar together with experts from the R&D com-
pany Asplan Viak has conducted a life cycle assessment for the carbon
footprint and energy requirement for dierent farming technologies.
The study analysed:
• Open net pen production (Coastal)
• Oshore net pen production
• Closed net pen production (Coastal)
• Landbased production in recirculating aquaculture
systems (RAS)
The study clearly demonstrates that open net pen and oshore pro-
duction has lower carbon footprint compared to closed net pen and
landbased production, before transportation to the end consumer.
The reason for this is mainly due to the significantly lower energy
requirement for open and oshore production technologies as these
technologies do not need any form of energy required to pump water
and produce oxygen.
In addition, the study has analysed the carbon footprint from produc-
tion all the way to the end-consumer in markets reached by air freight,
boat and trucks. The study clearly showcases that local processing and
transportation is the key to reduce the carbon footprint if delivered
with air freight. Transported as filets to the US market, fish produced
in open or oshore net pen in Norway has a similar carbon footprint as
fish produced locally in the US at a landbased facility run on American
electricity mix, even though the fish from Norway has been sent with
air transportation. In addition, the study clearly also demonstrates
that salmon produced in open or oshore net pen has a lower carbon
footprint delivered to the end consumer, when it is possible to deliver
with either boat or trucks, regardless of if the closed or landbased
production technology is operated only on green electricity.
SalMar is now analysing results from the study and will further eval-
uate any need for further research.
The study gives us further confidence to SalMar's strategic endeavours
both coastal and oshore as salmon raised in its natural habitat in the
ocean in open or oshore net pen technologies have a low carbon
footprint and low energy requirement compared to other technologies.
Both of these are important aspects for SalMar's strategic ambitions
going forward.
We are conducting a climate risk analysis and aim to
include it in our reporting
In the end of 2021 and start of 2022 SalMar is conducting a climate
risk analysis of all its operations across the value chain from roe to
plate and accompanying suppliers to the value chain. Analysing how
our operations may impact the climate and how the climate may impact
our value chain and business.
The study analyses both threats and opportunities and addresses
both physical and transitional risks with related financial impact from
each of the risks and opportunities identified. So far the analysis has
not identified climate-related matters that will substantially aect our
assets, provisions or future cash-flow.
Work with the climate risk analysis is continuing in 2022 and SalMar
aim to include results from the analysis in sustainability reporting
going forward and align the reporting according to the Task Force on
Climate-related Financial Disclosure (TCFD).
As part of our CDP reporting for climate change conducted in 2021,
the report also addressed climate risks and our plans to address such
risks. Please see the CDP report available from their website. SalMar
also plans to submit their CDP response for climate change in 2022.
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Site Environment
Salmon thrive and grow best in their own natural habitat. At the same
time, we have great respect for the fact that we use the local com-
munity’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 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
aected by our operations. We are work-
ing continuously to find the optimal loca-
tions for our farms, so that we can realise
our objective of having all our operational
sites with a condition designated as “very
good” or “good” (MOM-B score of < 2
1
). In 2021, 88 per cent of our
operational sites in Norway achieved this score, while 50 per cent of
our sites in Iceland did so. All sites had a satisfactory MOM-B score
prior to the transfer of new fish stocks.
In 2021, we have engaged in the relocation of certain sea farms, and
we have established new ones. At the same time, we have continued
working to develop methods to enable us to assess how to use our
sites optimally.
Together with the Norwegian Seafood Federation (Sjømat Norge),
other fish farmers and research institutions, SalMar monitors large
areas to see whether fish farming operations are having a regional
1 The MOM-B study complies with Norwegian Standard NS9410. We use active
sites in 2020, where samples at peak production were taken. The condition is
graded on a scale of 1 to 4.
impact. The latest Risk Assessment of Norwegian Aquaculture pub-
lished by the Institute of Marine Research
2
states that the risk of
eutrophication deriving from emissions of nutrient salts is considered
low in all production areas in Norway. 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 has also decided not to use copper impregnation on our net
pens. The majority of net pens are already not impregnated with
copper, and all new net pens will be copper-free.
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 discharged to sea.
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 oshore fish farm,
in collaboration with partners in the aquaculture, oshore 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.
Oshore fish farming moves the salmon out to its natural habitat,
which lets us operate on the salmon’s terms to a greater extent than
today. See the separate section in the annual report for further details.
At the start of 2021, our first closed-containment production
unit went into operation in Møre & Romsdal County. This is a new
closed-containment unit, where water is pumped up from beneath
the unit and is purified before being discharged back into the sea.
This increases biosecurity and helps keep control of lice numbers
inside the unit. The unit will be used for post-smolt production. The
2 Source: Risk Assessment of Norwegian Aquaculture, www.hi.no
fish will grow from a standard smolt size to around 800–1,000g
before being transferred to conventional open net pens. SalMar aims
to obtain operating experience from this first unit, with the emphasis
on both fish welfare and the environment, before deciding whether
to build any more.
88%
88% of our
operational sites in
Norway achieved
the score “very
good” or “good”
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Fresh Water Consumption
Aquaculture generally has a low freshwater requirement compared with other types of food production. The
fish live a large part of their lives in the sea and do not depend on supplies of fresh water. SalMar’s fresh-
water consumption derives largely from its onshore hatcheries and its harvesting and processing plants.
We use fresh water only from low-risk areas
In large parts of the world, access to fresh water is a challenge. SalMar uses fresh water only 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
1
provides a good overview of the water risk in various areas. All the areas in
which SalMar operates are defined as low risk, both in Norway and Iceland.
We use new technology to reduce water consumption
SalMar’s consumption of fresh water relates largely to its onshore hatcheries. These facilities accounted for
97 per cent of freshwater consumption in 2021. The remaining consumption comes from our harvesting
and processing activities.
In 2021 SalMar reduced its water consumption with 27% compared to 2020 in Norway and increased with
only 1% on Iceland. The reduction in Norway is due to transition from use of flow through technology to
recirculating aquaculture systems (RAS) technology in our onshore hatcheries.
The transition from flow through technology to facilities based on recirculating
aquaculture systems (RAS) technology is an important part of our strategy to
reduce the freshwater consumption used at our hatcheries. All our more recent
hatcheries have been built using RAS technology, with 97 per cent of the production
water being purified and reused. This means that an RAS facility with the capacity
to produce around 15 million smolt uses as little water as a standard throughput
facility capable of producing approx. 1 million smolt. Water consumption is 20
times less than it was previously. In 2021, around 89 per cent of the biomass
transferred to sea farms 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.
1 https://www.wri.org/aqueduct
89%
89% of the
biomass
transferred to
sea farms in
Norway were
raised in RAS
facilities in 2021
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Waste Management
Waste is a resource which we must take care of, and which can
be reused to make new products. All SalMar departments have
a waste-management plan, which stipulates the receiving facilities
approved for various types of waste. Packaging and used fish farming
equipment, such as collars, nets and mooring devices are delivered to
undertakings that reuse the materials.
We help to reduce marine pollution
Pollution of the seas, and plastic pollution in particular, is a major
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 general clean-up eorts 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.
We exploit every part of the salmon
By-products (head, spine, ocuts) are exploited to the full. All ocuts
from the production of fillets at SalMar’s harvesting and processing
facilities are sent for further processing, resulting in 100 per cent of
the raw materials being utilised. From InnovaMar, the raw materials
go directly to Nutrimar via a system of conveyor belts/pipes, which
ensures a high degree of freshness and usable volume when pro-
cessing 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.
All fish that die during production are sent to companies that use
them as ingredients in the feed industry.
Utilisation of sludge as a resource
SalMar’s hatcheries are required to treat their wastewater before its
discharge and have established a variety of processes to utilise the
resultant sludge as a resource.
At the Senja hatchery, an ultramodern drying facility has been installed.
As a result, all the sludge produced by the facility is dried to a 95
per cent 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
per cent solid. The bulk of the sludge is used for biogas production.
Some is still 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.
Early in 2022 a project has been initiated with SalMar and NIBIO
1
to
explore possibilities to further utilize the potential of the nutrients in
the discharge water and sludge from our smolt facilities, e.g., biogas
production, fertilizer, salad production (aquaponics), etc.
1 www.nibio.no
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Sustainability and Corporate Responsibility Environment & Technology
Research and Development
Norway’s aquaculture industry has experienced fantastic growth and
development. SalMar is an important contributor to the development of
the industry and gives high priority to the advancement of knowledge
within its areas of operation.
The company does this through close cooperation with the public
authorities, educational and research establishments, and industry
bodies. The extent of SalMar’s R&D activities was substantial in 2021,
within a wide range of fields. Through the year, SalMar continued to
focus on fish welfare and lice control. Major R&D projects have been
undertaken at our processing plant, while considerable emphasis
has been placed on the optimisation of feeding and the control of
feeding at our sea farms. As always, we remain committed to helping
the industry gain as much sector-specific knowledge as possible and
ensuring that it benefits the sector as a whole.
We support research establishments and academia
SalMar’s contacts 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 eort
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 sub-projects. The NTNU has created five doctoral
research positions, with postgraduate and undergraduate students
attached 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 extremely keen to
support 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 ASA has endowed a profes-
sorship within the field of aquaculture cybernetics. The professor-
ship is intended to promote cross-functional research linking the
areas technical cybernetics, biology and aquaculture. It will act as
a knowledge base for and link between the aquaculture industry and
the academic world. In addition to SalMar, Kongsberg Maritime is an
important partner in this eort. The professorship will also contrib-
ute to the recruitment of more students to the field of aquaculture,
thus securing the industry’s access to highly qualified technological
expertise. This professorship will strengthen the NTNU’s position as
one of the world’s leading universities for aquaculture and aquaculture
technology.
We actively use R&D licenses and have several
green licenses
SalMar has been actively engaged in partnerships with R&D establish-
ments for many years. This also includes collaboration on the operation
of R&D licences. The scale and professionalism relating to important
development tasks has increased and 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 eorts, at the same time as opera-
tional sta gain more and more 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 has a total of 16 “green” licences. Eight of these
are purchased “Green-B” licences and eight are “Green Converted”
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 annual report is published 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 is one impor-
tant preventive measure 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.
SalMar’s focus on breeding and genetics includes a collaboration with
Benchmark Holding PLC’s entity SalmoBreed through our co-own-
ership of SalMar Genetics. SalMar is pleased to see that this model
has provided a solid foundation for the further development of the
Rauma Broodstock in the years ahead. In this eort, we will be focus-
ing intensely on the development of robust qualities, in addition to
general resistance to disease and good growth. The change in focus
and intensity of our eorts 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.
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We use new packaging solutions and reduce food waste
SalMar leads the way by focusing intently on reducing food waste
through the development of better packing and packaging solutions.
We participate in national and international projects to develop and
implement new solutions for eective, quality-preserving production,
packaging and distribution. This is all part of our eorts to boost
sustainability by reducing environmental impacts caused by food
waste, materials consumption and transport through the value chain.
We are focusing on the further development of packaging solutions,
including a switch to new more environment-friendly materials, the
reuse of materials and the addition of other desirable properties.
SalMar is working hard to increase the percentage of its products that
are transported in reusable boxes. A large proportion of SalMar’s pre-
rigor finished products are already packed in such boxes. This aords
savings in the form of a reduced need for ice and avoids having to
discard polystyrene boxes. Boxes do not have lids and are part of
a circular system that sees them returned from the customer, washed/
disinfected and brought back to the plant ready for reuse.
With respect to a large part of our fillet production, we have stopped
using ordinary ice and have switched to dry ice made from gas deriving
from fertiliser production. Dispensing with water ice reduces the con-
signments’ weight and volume, and thereby the emissions generated
in connection with their transport.
We have started using plastic packaging for some of our finished
products. By using a thinner plastic film, we have reduced our con-
sumption of plastic by over 30 tonnes. We continue to work on the
development of new and better packaging materials and technologies.
We are focusing particularly on reusable boxes, ice-free shipments and
packaging technology that provides complete bacteriological security.
We have initiated several projects to extend the shelf-life of our
salmon products, through the use of new freezing technology, new
packaging solutions, etc. This is important if we are to make use of
new methods of transport to the markets, while maintaining the high
quality of the product.
In 2021, we continued to increase our use of the Keep-It® shelf-life
indicator on our products. This is an indicator that shows the temper-
ature and the product’s remaining shelf-life. This is a device that really
focuses the attention of all links in the value chain (from the factory to
the customer), thereby helping to increase the shelf-life of the product
and reduce food waste. We are currently working on new projects
that aim to visualise the quality of the product in the package, using
new technological solutions. The objective is to be able to document
additional quality attributes through simple technological solutions.
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People & Society
We who work at SalMar care about our colleagues, our partners and
the local communities in which we operate. For us, it is important to
behave as a responsible corporate citizen because we believe that
this has a positive impact on our own operations and society at large.
With over 1,800 employees, SalMar is a major employer and an impor-
tant member of society. This position gives rise to multiple responsibil-
ities to people, society and industry. We take these social obligations
extremely seriously. Ethical business practice is a key value for SalMar.
We aim to operate in an honest, proper and trustworthy manner, and
take pride in showing o what we do.
Sustainable development is about local value creation, knowledge
development and the ability of people to live a good life. These aspects
are fundamental to SalMar, as an employer, producer, supplier of
healthy food, user of nature and the environment and manager of
intellectual and financial capital.
Our position makes it important for us to aect our surroundings
in a positive and sustainable way, while giving back where we can.
Our KPIs
SalMar Icelandic Salmon
Target 2021 2020 2019 2021 2020 2019
Employees
No. of full-time equivalents (FTE) 1,828 1 653 1 593 133 110 110
ASA 36 35 34
Hatcheries 82 96 92
Fish Farming 668 630 605
Sales & Industry 1,041 893 862
Female ratio 28% 26% 26% 23% 24% 22%
ASA 44% 44% 45%
Hatcheries 19% 18% 19%
Fish Farming 10% 9% 9%
Sales & Industry 39% 38% 38%
Safety &
sickness
absence
No. of fatalities 0 0 0 0 0 0
LTI – own employees 0 17 24 20 7 9
LTI – subcontractors 0 4 0
H-factor – own employees
1
<6 5.9 9.1 7.7 5.5 7.8
Sickness absence < 4.5% 6.1% 5.3% 5.3% 4.1% 4.3% 4.1%
Regulatory
compliance
No. of violations 0 0 0 1
2
0 0 0
Fines (NOK million) 0 0 0 1.2 0 0 0
1 SalMar in Norway reports H-factor as LTIs per million working hours, Icelandic Salmon reports H-factor as LTIs per 200,000 working hours
2 The violation related to a fish escape incident.
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The Workforce
Good employees, irrespective of gender, age or background, are cru-
cial 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.
We have a diverse workforce
In 2021, SalMar employed a total of 1,960 full-time equivalents from
43 dierent countries. This is 197 full-time equivalents more than in
2020. The workforce was made up of 535 women and 1,425 men.
The female ratio of the Executive Management is 20%.
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 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 parts of our value chain
as categorized in the table above. This shows that SalMar’s continued
eorts to increase the female ratio of its workforce is eective. The
percentage of women is considerably higher at the Group’s harvesting
and processing facilities than at its hatcheries and fish farms. There-
fore, the latter areas will be of particular focus in SalMar’s future eorts.
In accordance with the activity duty set forth in Norwegian regulations
to promote more equality and prevent discrimination SalMar for the
first time in 2021 have disclosed its KPIs in relation to this reporting for
employees in Norway. New KPIs include part-time employees, tempo-
rary employees, average number of weeks parental leave and average
cash benefits, where all KPIs are divided between female and male.
Temporary and part-time employees constitute a smaller proportion
of the total workforce in SalMar. Despite this, it is important to see if
there are any involuntary part-time work for its employees. 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.
Results for 2021 shows that average cash benefits in Norway are
lower for females than for males. This is mostly due to the higher
proportion of women within sales and industry and since the industry
historically have had a higher ratio of men working in the industry.
Therefore male representatives are overrepresented in managerial
positions and for employees with longer seniority and together with
the higher proportion of females in groups with lower seniority this
explains the dierence in average cash benefits. The remuneration
policy in SalMar do not accept any form of discrimination of cash
benefits provided to employees on the basis of gender and equality.
See also our ethical guidelines later in the report.
Icelandic Salmon has been certified from BSI on that their remunera-
tion policy promote equality and on average females earn 0.5% more
than males in Icelandic Salmon.
Details of benefits to executive management and compensation
according to the remuneration policy for 2021 will be presented in
a separate remuneration report which will be presented at the annual
general meeting in June 2022.
Overview of employees, parental leave and average
cash benefits in Norway
Female
Male
Female
ratio Total
Employees (FTE) 505 1,323 28% 1,828
Part-time employees (FTE) 11 12 49% 23
Temporary employees (FTE) 34 82 30% 116
Female
Male Dierence Total
Average number of weeks
parental leave 16 9 7 12
Average cash
benefits
1
(KNOK) 526 717 -192 668
1 Cash benefits include all cash benefits paid to employees e.g. base salary,
overtime, bonus and other cash remuneration. Any bonus from share based
incentive programs are excluded.
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We have clear ethical guidelines
In its Code of Conduct, the Group makes its policy plain 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 responsibilities.
This attitude springs from acknowledgement that diversity contrib-
utes 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. The whistleblowing channel is accessible via
SalMar’s intranet in both local language and English. The service is
operated by the investigatory unit at BDO AS, and all employees
are free to use it either anonymously or under their full names. The
whistle blowing 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.
In 2021, one whistleblowing report was recorded. This report, as well
as all previous reports, was dealt with and closed in accordance with
internal guidelines (Chap. 12.4 in the Code of Conduct).
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 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 issues, 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 upper secondary and university college level. In
Norway, these include schemes such as Ungt Entreprenørskap, Blått
Kompetansesenter and the Norwegian University of Science and Tech-
nology (NTNU), while in Iceland we collaborate with the Fiskteknískolí.
Furthermore, SalMar conducts periodic development discussions (at
least once a year) with its employees. This is common practice in most
businesses, and SalMar considers this to be vital both in developing
happy, high-performing employees and in giving the employees a famil-
iar arena where open and honest dialogue with senior management
is encouraged.
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. Dierent individuals are measured against dierent 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.
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 2021, a total of 17 Lost Time Injuries (LTI) were recorded in Norway
and 7 in Iceland. This is an improvement from 2020 and showcase
that the systematic eorts and focus provides results. As a result of
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the lower number of incidents, the H-factor has also decreased
1
, and
is below our target at 6. SalMar will in 2022 evaluate to reduce the
target for H-factor at a lower level.
For the first time, SalMar is this year reporting LTIs for subcontractors
as a step towards full transparency and accountability throughout the
value chain. There were 4 LTIs at SalMar’s subcontractors in Norway
in 2021, and they originate to a incident at a service vessel and 3
incidents at the construction site of our new smolt facility in Northern
Norway. In Iceland there were no incidents.
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 2022.
All parts of the Group have an industrial safety representative, and
two industrial safety inspections are carried out in each department
every year. In 2021, these inspections uncovered important areas for
improvement to further reinforce workplace safety.
All serious personnel injuries are investigated to prevent similar inci-
dents occurring in the future. In collaboration with DNV GL, our central
technical sta 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 map-
ping of our overall risk picture is the most eective measure we can
implement to reduce the probability of injuries occurring. Day to day,
internal procedures, instructions and checklists are all drawn up on
the basis the risk analyses performed.
1 SalMar in Norway reports H-factor as LTIs per million working hours, Icelandic
Salmon reports H-factor as LTIs per 200,000 working hours
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 systematic weekly and monthly reviews by SalMar’s manage-
ment 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 sucient 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
2021, a year when Covid-19 still created a great deal of uncertainty
about how it might develop. We are very pleased to note that the
sickness absence rate in 2021 improved for Icelandic Salmon and
that they reached the company goal of below 4.5 per cent. SalMar,
however, saw an increase in the sickness absent rate and ended at 6.1
per cent. This was largely Covid-related as strict quarantine rules and
a high infection number in our Group brought many sickness-related
absence days in early 2021. Bringing the overall sickness absence
rate down towards our company goal will be a focus area for 2022.
Short-term absence in Norway came to 2.6 per cent in 2021, up from
2.2 per cent in 2020.
The sickness absence rate is slightly higher in SalMar’s harvesting
and processing operations. For this reason, the Group is working sys-
tematically to reduce sickness absence in this part of the value chain.
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Society
SalMar has a global supply chain both upstream and downstream, and
therefore have a responsibility to ensure and promote human rights
in all our activities, both direct and indirect. SalMar endorses whole-
heartedly 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), e.g., protection against discrimination
and the right to form a labour union, are included in the Group’s Code
of Conduct and several other governing documents.
SalMar intends to comply fully with the Transparency Act put forth
by the Norwegian Government that is planned to go into eect from
Q3 2022. This is a strong initiative regarding business transparency
and work on human rights aspects.
To continuously ensure that human rights standards are upheld
throughout the value chain, SalMar also conducts systematic and
random audits of subcontractors.
SalMar has a presence in local communities along the Norwegian coast
and is attentive to developments in villages and local districts. At the
close of 2021, we had operations along the entire coast of Central
Norway, Northern Norway and the Westords 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 oering 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 eorts to combat
ocean plastic.
In 2021, SalMar continued 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.
In 2013, SalMar became a sponsor of the football club Rosenborg
Ballklubb (RBK). This partnership continued in 2021 and will remain
in eect in 2022. In addition to profiling SalMar, the partnership
includes a separate programme for children and teenagers, and the
development of grassroots football clubs in Trøndelag. RBK has high-
lighted the partnership through the SalMar Sports Ground and the
SalMar Academy. 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.
In collaboration with the NTNU, SalMar ASA 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.
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We operate visitor centres so our stakeholders can learn
more about aquaculture
In the autumn of 2017, a new aquaculture visitor centre, the SalMar
Salmon Centre, opened in Finnsnes/Lysnes in Northern Norway. SalMar
wishes to increase the public knowledge about the aquaculture indus-
try and the target audience includes local people, tourists, school
-
children and members of the business community. Through exciting
experiences on shore and at sea, the public will gain greater insight
into a modern and sustainable industry. A visit to the SalMar Salmon
Centre includes an interactive exhibition about fish farming in Norway,
and visitors can see the high-tech solutions used to remotely feed
the salmon. In addition, the centre features an ultra-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.
Through the acquisition of controlling ownershare in Refsnes Laks AS
and Nekton Havbruk AS in 2021, two additional aquaculture visitor
centers have been included in the SalMar group. The visitor centre
from Refsnes Laks is located in Trondheim and the visitor centre from
Nekton is located on the Smøla archipelago.
In addition, at the end of 2021 SalMar was awarded approval for
a new visitor center in Molde in Møre and Romsdal county. The visitor
centre will be located in the city centre of Molde and in 2022 work
will commence to put the centre into operation.
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 without the proper tyres/chains. SalMar
cares deeply that the products we make and deliver from our facilities
should be safe for the consumer. This applies not only to food safety
but also to transport. We have therefore introduced control measures
and routines.
As a buyer of transport services, SalMar demands that its suppliers
meet certain standards. To haul salmon from our production facilities
and harvesting plants, or from the facilities we work with, the transport
services provider must sign a declaration stating that they know and
comply with the Norwegian Public Roads Administration’s technical
requirements for vehicles in Norway. They also undertake to famil-
iarise themselves with the prevailing driving conditions on the roads
they will be using.
Together with the Norwegian Public Roads Administration, trans-
port buyers and other partners, 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 everyone who uses our road network. Spe-
cifically, the project involves Norwegian Public Roads Administration
sta teaching our employees how to check that tyres and chains
are in order, as well as providing useful information material to the
company’s employees and drivers.
In addition, our sta assess whether a trailer seems to be in a tech-
nically acceptable condition and whether the driver is “competent” to
drive it. In the event of any non-conformance, necessary measures
are implemented. All this to ensure safer transport.
Our financing is linked to our sustainability endeavours
At the start of 2021, SalMar refinanced its credit facilities. This
includes a sustainability linked credit facility, with four sustainability
KPIs included in the determination of interest margin. SalMar gets
a lower margin if we succeed and a higher margin if we fail to achieve
the targets for the KPIs. The four KPIs included are all ones which
move the Group in an even more sustainable direction.
• Survival rate
• Economic feed factor
• Secondary processing rate
• Greenhouse gas emission intensity in Scopes 1+2
In addition, SalMar issued a green bond at the start of 2021, with
the funds raised being used in accordance with the published green
framework. The green bond’s funds will be invested solely in areas that
will contribute to the more sustainable development of the company
and the industry at large. See SalMar’s website for further details.
We comply with the regulations
The aquaculture industry is strictly regulated, and companies must
comply with applicable laws and regulations. Here we report 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.
In 2021, SalMar remained fully in compliance with statutory regula-
tions, both in Norway and Iceland.
Please see Note 4.8 to the annual financial statements for information
concerning allegations of price fixing.
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Executive Management 65
Board of Directors 66
Shareholder Information 68
Report of the Board of Directors 70
CORPORATE
GOVERNANCE
Contents
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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 dierent 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 2021.
Deviations from the code of practice: Reference is made to item 6 and 8.
2. Business and Purpose
SalMar is one of the world’s largest producers of farmed salmon.
As at 31 December 2021, the company owned licences for marine
production of 107,789 tonnes MAB Atlantic salmon in Norway. This
includes 3 time-limited demonstration licences covering 780 tonnes
MAB each. In addition, the company has 8 development licences.
SalMar has substantial secondary processing and sales activities in
Frøya at InnovaMar, Senja at InnovaNor and Aukra at Vikenco, as well
as five sales oces in Asia.
In 2021 SalMar entered into a strategic partnership with Aker, estab-
lishing SalMar Aker Ocean. The company has ambition to become
a global oshore aquaculture company with an ambition of 150,000
tonnes within 2030.
At the end of 2021, SalMar owned 51.02 per cent of the Ice landic
aquaculture company Icelandic Salmon, which harvested around
11,500 tonnes of salmon in 2021.
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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 largest pro-
ducer of salmon, with an annual capacity of around 50,000 tonnes
of harvested fish following the acquisition of Grieg Seafood Hjaltland
UK Ltd. in 2021.
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 activities, 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 aected 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 our passion
for salmon. Salmon shall be produced on its own terms. SalMar con-
siders that the best biological results will provide the basis for the
best financial results, and will safeguard SalMar’s position as the
world’s most cost-eective 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 extremely aware of the diverse nature of its social responsibilities:
as an employer, an industrial processor, a producer of healthy food,
as a custodian 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
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3. Equity and Dividend
Equity
As of 31 December 2021, the company’s equity totalled NOK 15,483
million, which corresponds to an equity ratio of 55.1 per cent. The
Board considers SalMar’s capital structure to be adequate 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.
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 sucient to meet future obligations.
The company has established long-term financial targets linked to
gearing: NIBD
1
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 2021 financial year, the Board proposes payment of a dividend
corresponding to NOK 20.00 per share. This proposal is based on the
company’s established dividend policy, as well as the Board’s assess-
ment, which emphasises that SalMar in 2021 has demonstrated its
capacity to adapt to changing market conditions, delivering strong
operational and biological results and maintaining a solid and robust
financial position.
1 NIBD includes liabilities in accordance with IFRS 16 and EBITDA is without fair
value adjustment
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 2021 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 with subsequent cancellation. These were extensions of
authorisations granted by the AGM in 2020 and EGM 2020. In line
with the Norwegian Code of Practice for Corporate Governance, each
of the authorisations was considered separately.
The authorisation for the Board to increase the company’s share
capital was limited to NOK 2,832,000, through the issue of up to
11,328,000 shares to finance investments and the acquisition of
businesses through cash issues and contributions in kind. At the date
of the oer document, 4,500,000 new shares have been issued upon
completion of a private placement of shares on 8 June 2021.
The second authorisation allows the Board to issue convertible loans
for up to NOK 2,000,000,000 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 2,832,000, 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 10 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 11,095,929
treasury shares with an aggregate par value of up to an aggregate
of NOK 2,773,982.25 at a price per share of no less than NOK 1 and
no more than NOK 900.
Finally, the Board was granted an authorisation to acquire own shares
for subsequent cancellation, cf. the Public Limited Liability Companies
Act Section 9 4, for up to 5,154,315 shares with an aggregate par
value of NOK 1,288,578.75. 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. The amount payable per share could be in the
range between NOK 1 and NOK 900 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.
All board authorisations are valid up until the next AGM, which will
be held on 8 June 2022.
In an extraordinary meeting on 14 March 2022, the general meeting
granted the Board an additional authorisation to increase the Compa-
ny’s share capital up to NOK 4,501,968.25, through the issue of up to
18,007,873 shares in connection with the completion of the voluntary
oer to acquire all outstanding shares in NTS ASA. The authorisation
is valid until the Annual General Meeting in 2023, however no longer
than until 30 June 2023.
Deviations from the code of practice: None
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4. Non-Discrimination of Shareholders and
Transactions With Closely Related Parties
As of 31 December 2021, SalMar ASA owned 102,361 treasury
shares, which accounts for 0.09 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 CEO Gustav Witzøe is the company’s founder. He indirectly
owns 93.02 per cent of Kverva AS, which, through Kverva Industrier AS,
owns 50.88 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 contain a point relating to monitoring of the compa-
ny’s routines and follow-up of transactions between related parties.
Transactions with related parties are discussed in Note 4.7 to the
2021 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 2022 AGM will be held on 8 June 2022 at the company’s head
oce 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 gen-
eral meetings, which will normally be chaired by the Board Chair. Other
members of the Board of Directors and members of the Nomination
Committee may in addition be represented at general meetings. The
present Board Chair, Leif Inge Nordhammer, 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 dis-
agreement on individual agenda items where the Board Chair belongs
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to one of the factions, or for some other reason is not deemed to be
impartial, a dierent 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 oce 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.
As of 31 December 2021, the Nomination Committee comprise of
the following:
• Bjørn Wiggen, Chair (up for election in 2021)
• Endre Kolbjørnsen (up for election in 2022)
• Karianne O. Tung
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 oce 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 ocers in other comparable companies,
and (b) on the scope of work and the amount of eort the elected
ocers 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 ocer 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 oces 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 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 six members, including two employee repre-
sentatives. Three of the company’s directors are women, including
one female employee representative. Women therefore represent
50 percent of the Board’s membership. In November 2021 the inde-
pendent Board Member Tonje Foss notified the chair of SalMar’s Nom-
ination Committee that she resigned her seat on SalMar ASA’s Board
of Directors, a new board member will be elected at the latest at the
company’s next AGM in June 2022. Prior to this the majority of Board
of directors was considered independent, after this two out of four
shareholder elected board members are considered independent.
In the upcoming election for new board members in June 2022 the
Nomination Committee will take into account that the majority of the
members of the Board should be considered independent.
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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.
As of 31 December 2021, one shareholder elected board member,
Leif Inge Nordhammer, owned shares in SalMar. And one of the
employee-elected board members, Tone Ingebrigtsen, owned shares
in SalMar. See company’s website www.salmar.no and Note 4.2 for
further details.
Independence of the Board
SalMar’s Board of Directors is composed such that it is able to act inde-
pendently of any special interests. Board Chair Leif Inge Nordhammer
is also a member of the board of Kverva AS, the company’s majority
shareholder through its ownershare in Kverva Industrier. Further,
Magnus Dybvad is working as investment director in Kverva AS.
These two are therefore not deemed to be independent. The remain-
ing directors are deemed to be independent of senior executives,
material 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 2021.
Deviations from the code of practice: After Tonje Foss resigned as
a board member 11 November 2021, two of four external board
members are deemed to be independent.
9. The Board of Directors
The Board of Directors has overall responsibility for the manage-
ment of the Group and the supervision of its day-to-day manage-
ment and business activities. Furthermore, the Board determines
the Group’s overall objectives and strategy, including the overall
composition of the Group’s portfolio and the business strategies of
the individual business unit. 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 2021,
the Board held 16 meetings, of which 14 were held digitally. The overall
attendance rate at board meetings was 95 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 (previously called the Audit Commit-
tee). The committee’s main tasks are to prepare the Board’s follow-up
of the financial reporting process, monitor 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 5 meetings in 2021, with an
overall attendance rate of 100 per cent.
With eect 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 of 31 December 2021, the Audit and Risk Committee comprised
the following:
• Margrethe Hauge (independent), chair
• Magnus Dybvad (not independent)
Deviations from the code of practice: None
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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 ecient 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 2021. 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 oce, and, where
appropriate, consideration is given to the use of financial hedging
instruments.
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 2021.
Starting from 2021, in accordance with Section 6-16b of the Public
Limited Companies Act, a separate report describing remuneration
to management and directors in 2021 will be presented to the AGM
for approval.
Deviations from the code of practice: None
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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 primarily
on the principle that executive pay should be competitive and moti-
vating, 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 incentive scheme in line with the Board’s authorisation.
At the 2021 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 exec-
utives. In addition, the AGM held an advisory vote on the Board’s pro-
posed guidelines for the determination of salary and other benefits
to senior executives for the 2021 financial year. 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.
Starting from 2021, in accordance with Section 6-16b of the Public
Limited Companies Act, a separate report describing remuneration to
management and directors in 2021 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, last updated
on 1 July 2019. The company 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 share-
holders 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.
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 subsidiary Icelandic Salmon AS (previously named Arnarlax AS)
was listed on the Euronext Growth trading system in 2020. 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.
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The guidelines shall ensure that the interests of shareholders are safe-
guarded, and that all shareholders are treated equally. Furthermore, the
guidelines shall help ensure that company operations are not unnecessar-
ily disturbed. The Board will strive to provide shareholders with sucient
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 share-
holder, 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 business
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 company’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 manage-
ment 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-re-
lated services.
Deviations from the code of practice: None
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Executive Management
Gustav Witzøe
President & CEO
Mr. Witzøe is the co-founder of SalMar
ASA. He holds a degree in engineer-
ing. 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 experience in fish
farming and processing.
Born: 1953
Shares: Mr. Witzøe indirectly owns
93.02% of Kverva AS, which in turn
through Kverva Industrier AS owns
50.88% of the shares in SalMar ASA. Mr
Witzøe is also a director of Kverva AS.
RSU-Rights: None
Trine Sæther Romuld
CFO & COO
Trine Sæther Romuld took over as
CFO & COO on 1 July 2019. Romuld
has extensive experience from a broad
range of management positions within
seafood, consulting and auditing, from
both Norwegian and international
companies. In addition, Romuld has
significant experience as board mem-
ber and leader of audit committee for
listed companies. Romuld is a state
authorized public accountant from
Norwegian school of economics (NHH).
Born: 1968
Shares: 6,323
RSU-Rights: 5,654
Roger Bekken
COO Farming
Roger Bekken took over as COO Farm-
ing on 4 June 2018. Mr. Bekken has
worked in the seafood sector since
1991. He has held a variety of exec-
utive 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. Bekken was managing director at
SalMar Farming AS.
Born: 1967
Shares: 16,766
RSU-Rights: 4,322
Frode Arntsen
COO Industry and Sales
Frode Arntsen took the position as
COO, Industry and Sales on 1 December
2017. He has a background from the
Norwegian Military, and is educated as
a lecturer within management. He has
worked in the seafood industry since
2000, and has previously held senior/
director positions at Lerøy Midnor,
Hitra Mat and Lerøy Midt.
Born: 1970
Shares: 4,706
RSUs: 4,221
Photo: Hitra-Frøya
Ulrik Steinvik
Director Business Improvement
Steinvik started in the position as Direc-
tor Business Improvement in August
2017. 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 Economics and
Business Administration in 2002.
Born: 1974
Shares: 139,335. Owns 18,266 shares
directly and indirectly through personal
related parties. Also owns 100 per cent
of the shares in Nordpilan AS. Nordpilan
AS owns 0.2 per cent of the shares
in Kverva AS, which in turn through
Kverva Industrier AS owns 50.88 per
cent of the shares in SalMar ASA.
RSU-Rights: 3,714
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Board of Directors
Leif Inge Nordhammer
Chairman of the Board
Nordhammer was previously CEO in SalMar from 1996 to 2016,
with a hiatus from 2011 to 2014. Today he works in his invest-
ment 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 indus-
try since 1985. Former companies include Sparebank 1 Midt-
Norge, E. Boneng & Sønn, Frøya Holding AS/ and Hydro Seafood
AS. Nordhammer 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 1,61% of the shares in SalMar
ASA. He owns 99,1% of LIN AS which directly owns 1,10% of
the shares in SalMar ASA and indirectly LIN AS owns 0,51% of
the shares in SalMar ASA through its 1% ownershare in Kverva
AS, which through through Kverva Industrier AS owns 50,88%
of the shares in SalMar ASA.
Nationality: Norwegian citizen, and resident in Norway
Independent: No
Margrethe Hauge
Member of the Board and Leader of the Audit and Risk Committee
Margrethe Hauge is CEO of Goodtech ASA and has held man-
agement 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 management 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 GIEK. She
holds a Master’s degree in Economics & Business Administration,
University of Mannheim, Germany.
Nationality: Norwegian citizen, and resident in Norway
Independent: Yes
Linda Litlekalsøy Aase
Member of the Board
Linda Litlekalsøy Aase is EVP Brownfield projects in Aker Solu-
tions. The Norwegian joined Aker Solutions in April 2014 and has
almost 20 years of industry experience, from technical manage-
ment to a variety of leadership positions, including head of Aker
Solutions’ maintenance, modifications and operations business in
Norway. She holds a MSc in material technology from NTNU, and
has studied business economics and management accounting
at NHH. Linda L. Aase joined the board of SalMar June 2020.
Owns 85 shares indirectly in SalMar ASA through personal
related parties.
Nationality: Norwegian citizen, and resident in Norway
Independent: Yes
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Magnus Dybvad
Member of the Board and member of the Audit and Risk Commitee
Magnus Dybvad has worked in Kverva for 10 years, and is today
investment director in the company. In Kverva he has been work-
ing with transactions, existing investments and market research
with a specific focus on salmon. The engagement related to
the portfolio companies has been related to business devel-
opment, M&A and strategy. Magnus Dybvad started his career
with equity research in First Securities in 2008. He holds a MSc
from NTNU (Norwegian University of Science and Technology)
within industrial economics and technology management with
an exchange in Canada.
Dybvad owns indirectly 0.02% of the shares in SalMar ASA. He
owns 100% of Acertar AS which indirectly owns 0.02% of the
shares in SalMar ASA through its 0.04% ownershare in Kverva
AS, which through through Kverva Industrier AS owns 50,88%
of the shares in SalMar ASA.
Nationality: Norwegian citizen, and resident in Norway
Independent: No
Tone Ingebrigtsen
Employee representative
Tone Ingebrigtsen works as a fish health manager for the north-
ern region of SalMar Farming. She has a master degree in aqua-
medicine, and an MBA from Nord University Business School.
Tone started working within the aquaculture industry in 2006,
and has been part of the SalMar-team since 2014.
Nationality: Norwegian citizen, and resident in Norway
Independent: Yes
Shares: 304
RSU-rights: 1592
Simon Søbstad
Employee representative
Simon Søbstad started his career in SalMar in February 2007.
Since then, he has held a number of dierent roles within sales
and industry.
Nationality: Norwegian citizen, and resident in Norway
Shares: 0
RSU-rights: 2367
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Shareholder Information
SalMar’s 20 largest shareholders
Name Shareholding 31.12.2021 Shareholding (%)
KVERVA INDUSTRIER AS 59,934,476 50.88%
FOLKETRYGDFONDET 6,555,356 5.56%
CACEIS Bank 2,236,647 1.90%
State Street Bank and Trust Comp 1,598,036 1.36%
BNP Paribas Securities Services 1,569,002 1.33%
State Street Bank and Trust Comp 1,518,495 1.29%
LIN AS 1,299,685 1.10%
JPMorgan Chase Bank, N.A., London 1,170,203 0.99%
CLEARSTREAM BANKING S.A. 1,066,044 0.90%
The Northern Trust Comp, London Br 1,022,490 0.87%
JPMorgan Chase Bank, N.A., London 992,543 0.84%
SIX SIS AG 927,477 0.79%
CACEIS Bank 774,110 0.66%
Brown Brothers Harriman (Lux.) SCA 723,542 0.61%
State Street Bank and Trust Comp 718,345 0.61%
VERDIPAPIRFONDET ALFRED BERG GAMBA 688,759 0.58%
VERDIPAPIRFONDET KLP AKSJENORGE IN 617,440 0.52%
The Bank of New York Mellon 595,832 0.51%
VPF DNB AM NORSKE AKSJER 573,595 0.49%
Pictet & Cie (Europe) S.A. 527,788 0.45%
Sum top 20 85,109,865 72.25%
Others 32,690,134 27.75%
Total 117,799,999 100.00%
Shareholders 13,731
Share price
20202021
400
500
600
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Share price development
Share price at the start of 2021 was NOK 503.60 per share, valuing
SalMar at NOK 57,058 million. At year-end the share price was NOK
608.00 valuing SalMar at NOK 71,622 million
Technical information
As of 31 December 2021 SalMar ASA had 117,799,999
shares, with each share having a face value of NOK 0.25.
As of 31 December 2021 the company had 13,731 share-
holders. The company’s VPS number is ISIN NO 001-0310956.
Account operator is Nordea Bank. The company’s ticker on the
Oslo Stock Exchange is SALM.
The green bond SalMar issued in April 2021 was listed on Oslo
Stock Exchange 21 July 2022 under the name SALM01 ESG.
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.
If you would like to subscribe to news from SalMar, please send an
e-mail to ir@salmar.no so that we can include your e-mail in our news
distribution list
Håkon Husby
Head of Investor Relations
Trine Sæther Romuld
CFO & COO
hakon.husby@salmar.no trine.romuld@salmar.no
+4793630449 +4799163632
Financial calendar 2022
Results 4th quarter 2021: 18 February 2022
Annual report 2021: 22 April 2022
Results 1st quarter 2022: 12 May 2022
Annual general meeting: 8 June 2022
Results 2nd quarter 2022: 25 August 2022
Results 3rd quarter 2022: 10 November 2022
SalMar holds quarterly presentations open to the public. The pres-
entations will take place at 08:00 am CET at Hotel Continental in
Stortingsgaten 24/26 in Oslo, Norway. The annual general meeting
will be held at Frøya.
Annual report will be published through the company’s homepage,
www.salmar.no, Oslo Børs news site, www.newsweb.no and other
newswires. Please note that the dates can be changed. Any changes
will be communicated.
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Report of the Board of Directors
SalMar can look back on more than three decades of strong
operational performance and growth. The company has grown
into one of the world’s largest aquaculture enterprises.
Despite a challenging market, characterised by global
uncertainty and volatile salmon prices, the company once
again posted strong annual results and made significant steps
to position itself for further growth on the salmon’s terms. The
establishment of SalMar Aker Ocean, a joint venture between
SalMar and Aker, which aims to establish a global oshore
aquaculture company was a key milestone in this respect.
In 2021, SalMar harvested a total of 170,500 tonnes of
salmon in Norway, 11,500 tonnes in Iceland and 32,400 in
Scotland
1
. The group generated gross operating revenues of
NOK 15,044 million. Operational EBIT totalled NOK 2,927
million in 2021.
The Group expects to harvest 175,000 tonnes in
Norway, 16,000 tonnes in Iceland and 46,000 tonnes in
Scotland
1
in 2022.
1 Associated company Scottish Sea Farms LTD through 50% ownership in
Norskott Havbruk
Business and strategy
SalMar ASA is a Norwegian public limited company, whose shares are
quoted on the Oslo Stock Exchange under the ticker SALM.
The Group is one of the world’s largest and most cost-ecient 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, 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 2021, SalMar had licences to hold a maximum allowable
biomass (MAB) of 107,789 tonnes of Atlantic salmon in Norway, this
includes 3 time-limited demonstration licenses, and a MAB of 25,200
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 at
InnovaMar in Frøya and Vikenco in Aukra in Central Norway. In addition,
the construction of SalMar’s new harvesting and processing plant in
Northern Norway, InnovaNor, was completed in 2021. The facility was
operational with eect from the fourth quarter of 2021 and is North-
ern Norway’s largest and most up-to-date salmon processing facility.
Icelandic Salmon, which was listed on the Euronext Growth in 2020
is partially owned by SalMar which holds 51.02 percent of the com-
pany’s shares.
In addition, SalMar owns 50 percent of Scottish Sea Farms Ltd (through
Norskott Havbruk AS), the UK’s second largest producer of farmed
salmon. In 2021 the company took an important step to strengthen
the position and presence in UK, by acquiring Grieg Seafood Hjaltland
UK LTD. For 2022, the acquisition is expected to result in 13,000
tonnes increased production, to 46,000 in total.
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 enter-
ing a strategic partnership with the industrial investment company
Aker. Together, the two companies aim to create the world’s lead-
ing oshore aquaculture company. The eorts are being channelled
through the company SalMar Aker Ocean, in which SalMar will retain
a majority interest.
SalMar is headquartered on Frøya, in Trøndelag County. The Group’s reg-
istered address is 7266 Kverva..
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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 wants to be a driving force for sustainable growth in the
global aquaculture industry and is convinced that the establishment
of salmon farming in the open ocean is an important and correct step
towards this goal. For SalMar, oshore fish farming represents an
important part of the solution to the industry’s challenges relating to
both production area limitations and biological performance. Not least
because conditions oshore largely reflect the natural habitat of the
Atlantic salmon. In this way, salmon can be farmed on the fish’s own
terms, rather than on the limitations of the equipment.
SalMar will therefore pursue two separate growth strategies going
forward: one for coastal fish farming and one for oshore fish farming,
the latter through SalMar Aker Ocean.
Coastal fish farming:
The core of SalMar’s strategic position in coastal fish farming will
continue to be cost leadership and operational eciency. 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 utilisation of the
harvested salmon in order 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 further industrial development. It
will also actively pursue attractive M&A opportunities and take part
in the opportunities for growth that come along, provided they are
on commercially acceptable terms.
Oshore fish farming:
With SalMar as the majority owner, SalMar Aker Ocean is a pioneer and
leader in the development of oshore salmon farming.
SalMar Aker Ocean engages in oshore fish farming, both in coastal
waters exposed to severe weather conditions and far out in the
open ocean. By combining Aker and SalMar’s knowledge and leading
expertise in the fields of salmon farming, focusing on fish welfare
and optimal terms for the salmon, industrial software and environ-
mental technologies, the company will create the world’s most reliable
and intelligent oshore aquaculture business, meeting the highest
standards for fish welfare and with the aim of zero emissions along
the entire value chain.
SalMar will own 66.66 percent of SalMar Aker Ocean, while Aker will
own 33.34 percent. In three tranches, Aker will make NOK 1.65 billion
in cash contributions, whereof the first tranche was paid in Q4 2021.
Important events in 2021
InnovaNor and Vikenco completed and operational:
Construction of SalMar’s new harvesting and processing plant in North-
ern Norway, InnovaNor, was completed and the facility was operational
at the end of 2021. The facility strengthens the company’s position
in Northern Norway and paves the way for increased value creation
and employment in the region. In 2022 SalMar will gradually ramp up
both harvesting and processing activity.
In the beginning of 2021 upgrade of Vikenco, the harvesting and
processing facility on Aukra in Møre og Romsdal was completed.
Established SalMar Aker Ocean:
SalMar entered a strategic partnership with the industrial invest-
ment company Aker in August 2021, creating SalMar Aker Ocean, the
world’s leading oshore aquaculture company. A first share issue was
carried out in SalMar Aker Ocean, whereby Aker Capital AS (owned
by Aker ASA) contributed a net capital increase of 639.1 million in
exchange for 15.0 percent of the shares in the company.
Green financing, rating, and private placement:
SalMar secured NOK 7.5 billion in green financing in the beginning of
2021, through a NOK 4 billion credit facility and the issue of a green
bond worth NOK 3.5 billion.
In April 2021, Nordic Credit Rating awarded SalMar a long-term initial
corporate credit rating of A-, for the latest update to their credit rating,
please see Nordic Credit Ratings webpage.
In June 2021, SalMar announced that the company had completed
a successful private placement of shares, which raised gross proceeds
of NOK 2.7 billion. This gives the company financial flexibility to sup-
port the company’s ambitious growth plans.
Increase of smolt capacity:
In May 2021, a final decision was taken to build a new smolt facility
in Tjuin, Trøndelag, where construction started in May 2021 with
expected first smolt delivery in 2024. At the same time construction
of Senja 2, expansion of the smolt facility on Senja continued, with
expected completion in 2022. SalMar has also constructed a new
closed net pen which was put into operation in the beginning of 2021.
Acquisition of Nekton Havbruk AS and Refsnes Laks AS:
In July 2021 and August 2021, SalMar announced it had acquired own-
ership interest in Nekton Havbruk AS and Refsnes Laks AS respectively,
giving SalMar 5,500 tonnes of increased MAB for salmon production
in Central Norway.
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Strengthening the position and presence in UK:
In June 2021, Scottish Sea Farms Ltd, signed an agreement to purchase
100 percent of the shares in Grieg Seafood Hjaltland UK Ltd (GSHU)
from Grieg Seafood ASA. The transaction was approved and completed
15th of December 2021 and work for integrating the company is
ongoing. For 2022, the acquisition is expected to result in 13,000
tonnes increased production, to 46,000 in total.
Organization:
In February 2021 SalMar announced that CFO & COO Trine Sæther
Romuld will move to a new role as CFO of SalMar Aker Ocean. Gunnar
Nielsen will be CFO in SalMar ASA, eective 1 April 2022.
Events after the reporting date
SalMar ASA launched a voluntary oer for all
outstanding shares in NTS ASA (NTS):
In February 2022, SalMar announced that it would launch a voluntary
oer to acquire all outstanding shares in NTS at NOK 120 per share,
valuing the equity capital of NTS at approximately NOK 15.1 billion.
Shareholders representing a total of 50.1 percent of the outstanding
shares in NTS had pre-accepted the oer.
NTS has as long track-record in salmon farming, both in Central and
Northern Norway as well as the Western ords of Iceland. The combi-
nation will strengthen the competence base and production capacity
and be a catalyst for further sustainable growth in the local commu-
nities where the companies operate.
The voluntary oer will be settled in a combination of cash and shares.
An extraordinary general meeting in SalMar ASA on 14 March 2022
authorised the board to increase the company’s share capital accord-
ingly. Completion of the oer is subject to, among other things, regu-
latory approvals and a satisfactory confirmatory due diligence.
New CEO in SalMar:
In March 2022, Linda Litlekalsøy Aase was appointed new CEO in
SalMar, eective 1 June 2022 at the latest. She takes over the position
after Gustav Witzøe, who has said he is willing to be nominated to
the company’s board. Ms. Aase has over 20 years of experience from
industry, most recently in Rolls-Royce Marine and Aker Solutions. She
currently serves as member of the board of SalMar ASA, a seat from
which she will resign upon becoming CEO. The Board wants to thank
Mr. Witzøe for his enormous, unique, and tireless eorts for SalMar
through 31 years, and notes that he will continue to contribute with
experience and expertise to the company.
Market conditions
Supply, exports and price of Atlantic salmon
The global supply of Atlantic salmon increased for the fifth year in
succession, ending 6.7 percent up in 2021, according to data from
Kontali Analyse.
Supply of Atlantic salmon
in 1,000 tonnes WFE
2020 2021 Change
Norway 1,369 1,532 11.9%
Chile 779 720 -7.5%
UK 178 199 11.6%
North America 157 158 0.6%
Faeroes 81 106 30.9%
Other countries 148 178 20.2%
Total, global supply 2,712 2,893 6.7%
2021 was the best year on record for Norwegian exports of seafood.
Total exports of Atlantic Salmon was around 1,480 tonnes round
weight, up 13 percent on 2020. The value of Norway’s salmon exports
rose by 16 percent, reflecting that the average price of Atlantic salmon
was higher in 2021 than the year before.
Norway exported 73 percent of its volume to the EU in 2021. Overall,
the EU increased its imports of salmon from Norway by 9 percent, with
the two largest markets (Poland and France) increasing their imports
by 7 percent and 14 percent, respectively.
SalMar sold directly to 56 dierent countries in 2021. Europe was the
most important destination, with Poland, Sweden and Lithuania as
the largest single markets. The second most important destination
was Asia, with South Korea, Japan and Taiwan as the most prominent.
Since sales to Russia were discontinued in 2014, North America has
been the third largest export destination.
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The price of Atlantic Salmon (NASDAQ) was higher in 2021 than in
2020. The year’s lowest price was recorded in week 2 at NOK 42.67
per kg, while the highest price came in week 50 at NOK 74.72 per kg.
The average price of salmon (NASDAQ Salmon Index) for 2021 was
NOK 57.92 per kg, compared to NOK 54.34 per kg the year before.
From the close of 2020 until the close of 2021, the Norwegian cur-
rency (NOK) weakened by three percent against the USD and 2 percent
against GBP. At the same time, it strengthened five percent against
the EUR. 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
SalMar’s licences are in the regions Central Norway and
Northern Norway.
In 2017, the Norwegian government introduced a new system for
regulating the growth of the aquaculture industry to safeguard its
environmental sustainability and stability. Under this system, growth
is controlled by means of a variable growth cap, relating to environ-
mental indicators, divided into production areas. The system is called
the “trac light system”, since production areas are designated as
being green, yellow or red. Growth is permitted in green areas, growth
is put on hold in yellow zones, while production in red zones must be
halted or reduced in scale. Growth is assessed every other year, and
capacity adjusted by six percent. In Norway, there are currently 13
production areas.
In 2020, the Norwegian parliament (Stortinget) introduced a new
production tax on the production of salmon and trout in Norway. The
production tax amounts to NOK 0.40 per kg harvested weight. The
new production levy came into eect on 1 January 2021, with the
first payment required from 2022. The production tax is distributed
to local councils and county councils hosting aquaculture operations
through the Aquaculture Fund. The production tax comes on top of
other taxes and charges and constitutes a competitive disadvantage
for the Norwegian aquaculture industry. 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, and
that the economic rent tax has been permanently shelved. From 1
January 2022 the production tax in Norway amounts to NOK 0.405
per kg harvest volume.
SalMar is pleased to be able to contribute to society as a major tax-
payer. Together, the company and its employees are estimated to have
paid over NOK 1 billion in taxes and other charges to central and local
governments. Our accounts show that in 2021, SalMar alone has NOK
543 million in tax payables.
Iceland
Framework conditions for salmon farming in Iceland have improved,
after being rather unpredictable for many years, and Icelandic Salmon
continues its active and constructive dialogue with the authorities
with respect to these issues. The company believes there is a tailwind
with respect to giving sustainable salmon production on Iceland room
to grow. 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 competitiveness 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 up until recently.
Icelandic Salmon today holds licenses of 25,200 tonnes maximum
allowed biomass in the southern part of the Icelandic Westords. The
company is in the process of applying for additional 14,500 tonnes
licenses in Ísaarðardjúp and Arnarörður respectively.
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 eciency, 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.
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Access to markets
China still accounts for only a small portion of the market for Nor-
wegian salmon. This is largely due to the introduction of restrictions
in 2015 on Norwegian salmon from selected regions. Eorts have
been made to improve access to the Chinese market. In May 2019,
China lifted its restrictions on the Norwegian counties to which
they had applied. This move also included SalMar’s harvesting plant
InnovaMar on Frøya.
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 invasion
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 2021 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 good.
Consolidated Income Statement
The Group generated consolidated operating revenues of NOK 15,044
million in 2021, compared with NOK 12,912 million in 2020. This
represents an increase of 16.5 percent.
In 2021, consolidated harvest volume was 182,100 tonnes overall:
170,500 tonnes in Norway and 11,200 tonnes in Iceland. In addition,
Norskott Havbruk harvested 32,400 tonnes, of which SalMar’s share
was 16,200 tonnes (50 percent).
The average price of salmon (NASDAQ) in 2021 came to NOK 57.92
per kg, up 6.6 percent from the average in 2020, which came to NOK
54.34 per kg. The price of salmon was lower in 2020 mainly due to
the Covid-19 pandemic. This year’s highest price was NOK 74,72 per
kg in week 50, while the lowest recorded price, NOK 42.67 per kg, was
recorded in week 2. The price closed the year at NOK 64.12 per kg.
Around 25 percent of SalMar’s total volume harvested in 2021 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 lower than the spot
price (NASDAQ) for the year as a whole.
The fish farming segments in Norway performed well both operation-
ally and biologically throughout the year, especially in Northern Norway.
The SalMar Group had payroll costs of NOK 1,540 million in 2021,
compared with NOK 1,320 million in 2020. The number of full-time
equivalents (FTEs) in the Group rose by 11.2 percent in 2021, from
1,763 FTEs at the close of 2020 to 1,960 FTEs at the close of 2021.
The main reason for the increase is the commencement of operations
at our harvesting and processing facilities Vikenco and InnovaNor.
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 2,927 million in
2021, compared with NOK 3,008 million in 2020.
Production tax reduced profits with NOK 72 million, onerous contracts
reduced profits with NOK 181 million and fair value adjustments
increased profits by NOK 777 million in 2021. The corresponding
adjustments in 2020 reduced profits by NOK 16 million for onerous
contracts and NOK 164 million for fair value adjustments. Fair value
adjustments comprise changes in the fair value of the biological assets,
unrealised eects of forward currency contracts and unrealised value
of Fish Pool contracts. See note 2.8, 3.6 and 3.13 for further details.
SalMar made an operating profit of NOK 3,451 million in 2021, up
from NOK 2,828 million in 2020.
Income from investments in associates contributed more to the 2021
results than the year before. This is largely attributable to improved
results by Norskott Havbruk. SalMar’s share of the profit from these
investments totalled NOK 95 million in 2021, compared with NOK
42 million in 2020.
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Net financial items in 2021 totalled NOK -159 million, compared
with NOK -299 million in 2020. The change is largely due to less
currency fluctuations. SalMar’s net interest income and expenses for
2021 totalled NOK 169 million, an increase from NOK 140 million in
2020. Financial income totalled NOK 21 million in 2021, an increase
from NOK 1 million in 2020. Financial expenses totalled NOK 11
million, a decrease from NOK 160 million in 2020. See Note 2.9 for
further details.
SalMar’s profit before tax in 2021 totalled NOK 3,387 million, up from
NOK 2,572 million in 2020. A tax expense of NOK 719 million has
been calculated for 2021, up from NOK 563 million in 2020.
SalMar’s net profit for the year totalled NOK 2,668 million in 2021,
compared with NOK 2,008 million in 2020.
Consolidated Statement of Cash Flows
SalMar achieved a positive cash flow from operating activities of NOK
2,908 million in 2021, compared with NOK 3,179 million in 2020.
Through 2021, SalMar’s working capital
1
increased by NOK 259 million,
compared with an decrease of NOK 55 million in 2020. In addition,
SalMar paid NOK 549 million in corporate tax in 2021, compared with
NOK 588 million the year before.
Net cash flow from investing activities totalled NOK 2,827 million in
2021, compared with net NOK 3,747 million in 2020. The decrease
in investing activities relates largely to that the figures for 2020 was
influenced by purchase of MAB capacity at the trac light auction
held in August 2020. See Notes 3.1 and 3.3 for further details.
1 Change in inventory / biological assets at cost, trade receivables, trade
payables and other accruals.
Net cash flow from financing activities totalled NOK 602 million
in 2021, compared with NOK 554 million in 2020. Cash flow from
interest-bearing debt and overdraft came to NOK -82 million in 2021,
while repayments relating to leasing liabilities totalled NOK 198 million.
Net interest paid came to NOK 151 million. A dividend payment of
NOK 2,271 million was made in 2021. Net proceeds from issuance
of shares in SalMar Aker Ocean totalled NOK 639 million, while net
proceeds from issuance of shares in SalMar ASA totalled NOK 2,682
million. In addition, a release of share based payment to employees
amounted to NOK 16 million.
In total, this gave SalMar a cash flow for 2021 of NOK 678 million,
including currency translation of cash and cash equivalents this
increased the Group’s cash and cash equivalents to NOK 902 million
at the close of the year.
Consolidated Statement of Financial Position
As of 31 December 2021, SalMar had a total balance of NOK 28,085
million, an increase of NOK 6,087 million since the end of 2020.
The book value of the Group’s intangible assets rose by NOK 1,704
million in 2021. At the end of the year, the value of the Group capi-
talised intangible assets stood at NOK 8,530 million.
The book value of property, plant and equipment totalled NOK 8,010
million at the end of 2021, an increase of NOK 1,607 million during the
year. This includes right-to-use assets of NOK 877 million, compared
with NOK 849 million in 2020.
The Group’s financial assets totalled NOK 1,300 million at the end of
2021, up from NOK 851 million at the end of 2020. The main reason
for the increase is the capital contribution to Norskott Havbruk due
to acquisition of Grieg Seafood Hjaltland UK Ltd.
The Group’s biological assets were valued at 7,281 million at the end
of the year. This is NOK 1,292 million higher than at the end of 2020.
Measured in tonnes, the biomass is 6.5 percent larger at the close of
2021 than at the start of the year. See Note 3.6 for further details.
The value of the Group’s other inventory at the end of 2021 stood
at NOK 647 million.
Trade receivables totalled NOK 935 million in 2021, up from NOK
589 million at the end of 2020. Other receivables increased by NOK
44 million during the period to NOK 480 million. At the end of the
year, SalMar had cash and cash equivalents totalling NOK 902 million.
At the end of 2021, the Group’s equity totalled NOK 15,483 million,
up from NOK 10,987 million at the end of 2020. The equity ratio has
increased from 49.9 percent the end of 2020 to 55.1 percent at the
end of 2021.
Net interest-bearing debt (interest-bearing debt less cash and cash
equivalents) totalled NOK 4,576 million at the end of the year, down
from NOK 4,893 million at the end of 2020. See Note 3.11 for fur-
ther details.
Based on its taxable profit for 2021, the Group expects to pay NOK
543 million in corporate tax.
The NOK 6,087 million increase in the Group’s total capital in 2021
can be attributed to an increase in interest-bearing debt of NOK 362
million, an increase in leasing liabilities of NOK 33 million, an increase in
other liabilities of NOK 1,196 million, as well as an increase in equity of
NOK 4,496 million. The Group’s solvency and financial position remain
strong at the end of 2021.
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Reporting segments
Fish Farming Central Norway
NOK million 2021 2020
Operating revenue 6,542 5,895
Operational EBIT 2,118 2,218
Volume harvested (tonnes gutted weight) 110,671 100,394
Operational EBIT/kg (NOK/kggw) 19.14 22.01
Fish Farming Central Norway, the Group’s largest fish farming segment,
posted good financial results in 2021 on the back of a continued
strong biological and operational performance. The segment’s oper-
ating revenues increased by NOK 647 million from 2020, to NOK
6,542 million in 2021. Operational EBIT fell by NOK 100 million to
NOK 2,118 million in the same period.
Operational EBIT per kg gutted weight fell by NOK 2.95 compared
to 2020. The decrease is attributable to a slightly higher production
cost, compared to the strong performing generations harvested in
2020. All the salmon produced by SalMar is sold internally at spot
market prices. On average, the segment experienced an increase in
the price achieved for its harvested salmon of NOK 0.39 per kg. The
production cost of the harvested biomass has, on average, increased
with NOK 3.34 per kg compared with 2020.
Fish Farming Central Norway harvested a total of 110,700 tonnes in
2021, compared with 100,400 tonnes in 2020. This represents an
increase of 10.2 percent. SalMar expects harvesting in this segment
will amount to 117,000 tonnes in 2022, up 5.7 percent on the volume
harvested in 2021. The increase compared with 2021 is due primarily
to a strong utilization of MAB capacity in the region and increased
production capacity from the acquisition of Refsnes Laks AS and
Nekton Havbruk AS.
Fish Farming Northern Norway
NOK million 2021 2020
Operating revenue 3,343 2,613
Operational EBIT 1,243 848
Volume harvested (tonnes gutted weight) 59,847 49,903
Operational EBIT/kg (NOK/kggw) 20.76 16.99
Fish Farming Northern Norway had a solid year, where strong biological
and operational performance, has resulted in significantly increased
volume, lower cost level and improved price achievement.
The segment’s operating revenues increased by NOK 730 million from
2020, to NOK 3,343 million in 2021. Operational EBIT rose by NOK
395 million to NOK 1,243 million in the same period.
Operational EBIT per kg gutted weight came to NOK 20.76 in 2021,
compared with NOK 16.99 in 2020. The increase of NOK 3.77 per kg
was caused by a NOK 3.49 per kg increase in average price achieve-
ment and lower production cost at NOK 0.28 per kg.
Harvest volume in Fish Farming Northern Norway was 59,800 tonnes
in 2021, compared with 49,900 tonnes in 2020. This represents an
increase of 19.9 percent. SalMar expects a harvest volume of 58,000
tonnes in 2022 with continued good capacity utilization. Further
improvement is expected in 2023 due to improved site and zone
structure and smolt stocking plans.
Icelandic Salmon
NOK million 2021 2020
Operating revenue 919 662
Operational EBIT 74 -50
Volume harvested (tonnes gutted weight) 11,537 11,239
Operational EBIT/kg (NOK/kggw) 6.41 -4.49
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 51
percent of the company’s shares at the end of 2021.
The segment’s operating revenues increased by NOK 257 million from
2020, to NOK 919 million in 2021. Operational EBIT rose by NOK 124
million to NOK 74 million in the same period.
Operational EBIT per kg gutted weight came to NOK 6.41 in 2021,
compared with NOK -4.49 in 2020. EBIT per kg in 2021 was signifi-
cantly higher than in 2020. This is the result of better biological control
combined with good marketing of Icelandic salmon. We have, moreover,
strengthened our foundation for further growth on Iceland through
the acquisition of two hatcheries and have launched a new brand
which will strengthen the position of Icelandic salmon in the market.
The company harvested a total of 11,500 tonnes in 2021, an increase
of 300 tonnes compared with the year before. Icelandic Salmon
expects to harvest 16,000 tonnes in 2022.
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Sales and Industry
NOK million 2021 2020
Operating revenues 14,406 12,393
Operational EBIT -152 282
This segment places and sells the entire harvested volume of the
Group in Norway. The fish is bought from SalMar’s farming segments
at spot market prices.
The segment’s revenues increased to NOK 14,406 million in 2021
from NOK 12,393 million in 2020. Operational EBIT came to NOK
-152 million in 2021, a decrease of NOK 434 million compared with
the year before.
The margins for the Sales and Industry segment were lower in 2021
than the year before, due to somewhat lower price achievement. This
is attributable primarily to the timing and price point of our fixed-price
contracts. In 2021, around 25 percent of the volume harvested was
sold under fixed-price contracts. These fixed-price contracts have
resulted in a lower price achievement than the spot price (NASDAQ)
for the year as a whole.
Around 136,800 tonnes of fish were harvested at InnovaMar in 2021,
compared with 124,800 tonnes in 2020. Operations at our harvesting
and processing facilities depend on the biological production cycle,
and substantial fluctuations in the volume harvested from one period
to the next can make it dicult to achieve cost-optimal output from
an industrial perspective. However, the flexibility of the plants has
created added value for SalMar as a whole since it enables production
at the sea farms to be optimised.
From a strategic point of view, SalMar believes it is correct to process
a relatively large portion of the raw material in Norway. It increases the
quality of the product that is sold to the customer, enables by-products
to be dealt with eciently, saves freight charges, reduces CO2 emis-
sions and boosts local value creation. The Covid-19 pandemic have
further reinforced our strategic focus on local secondary processing.
In 2021, the construction of a new harvesting and processing plant
at Senja, Northern Norway – InnovaNor, continued and was completed
in the fourth quarter. The plant, which was operative from the same
quarter, is Northern Norway’s most modern and ecient harvesting
and processing plant. SalMar expects a gradual ramp up of both har-
vesting and VAP activity in 2022.
An upgrade of the Vikenco harvesting and processing plant in Aukra,
Central Norway, was completed at the start of 2021.
Associates
Norskott Havbruk
NOK million 2021 2020
Operating revenue 2,307 1,699
Operational EBIT 244 308
Volume harvested (tonnes gutted weight) 32,400 24,000
Operational EBIT/kg (NOK/kggw) 7.55 12.87
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 2,307 million in 2021,
compared with NOK 1,699 million in 2020. The increase in revenues
derives primarily from a higher volume harvested in 2021 than in 2020.
Operational EBIT for the year as a whole came to NOK 244 million,
down from NOK 308 million in 2020. Operational EBIT per kg gutted
weight came to NOK 7.55 in 2021, compared with NOK 12.87 in 2020.
Biological challenges, particularly those linked to gill health, have had
a negative impact on the period’s result in the second half of 2021. It
has led to harvesting of fish with a lower average weight, which has
aected both cost and price achieved.
The company harvested a total of 32,400 tonnes in 2021, up from
24,000 tonnes in 2020.
On 29 June 2021, Scottish Sea Farms Ltd, signed an agreement to
purchase 100 percent of the shares in Grieg Seafood Hjaltland UK
Ltd (GSHU) from Grieg Seafood ASA. The transaction was approved
and completed 15th of December 2021 and work for integrating the
company is ongoing.
A significant increase in the volume harvested is expected in 2022
as a result of the GSHU acquisition. The company expects to harvest
46,000 tonnes in 2022.
Norskott Havbruk is recognised as an associate, 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
company’s net profit in 2021 came to NOK 94 million, compared with
NOK 49 million in 2020.
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The parent company’s financial statements and allocation of the profit for the year
The parent company, SalMar ASA, is a shareholding and administrative entity. Group management and
administrative resources are employed by this company. In 2021, it employed a total of 36 full-time
equivalents.
SalMar ASA made a net profit for the year of NOK 1,792 million in 2021, compared with NOK 2,160
million in 2020. The bulk of its revenues derive from investments in subsidiaries and associates. 2021
was a good year for the company’s subsidiaries, and a total of NOK 2,361 million in dividends/group
contributions was recognised. In addition, SalMar ASA manages the Group’s primary financing arrange-
ments and recognised NOK 99 million in interest income on loans to group companies and other interest
income. Interest expenses amounting to NOK 114 million were incurred mostly in association with the
Group’s financing arrangements.
SalMar ASA had recognised total assets of NOK 13,665 million at the close of 2021. Of this amount,
non-current assets accounted for NOK 11,034 million, of which NOK 7,018 million comprised of intercom-
pany non-current receivables. Intercompany current receivables totalled NOK 2,569 million and largely
comprise receivables of dividend/group contributions from subsidiaries. The company had holdings of
cash and cash equivalents of NOK 11 million at the close of 2021. Equity as of 31 December 2021
totalled NOK 5,498 million, which corresponds to an equity ratio of 40.2 percent. Non-current liabilities
totalled NOK 4,369 million and mainly comprised interest-bearing debt. Current liabilities totalled NOK
3,799 million, of which current interest bearing debt accounted for NOK 356 million, tax payable NOK
494 million while dividend provisions came to NOK 2,354 million.
The Board of Directors is proposing a dividend of NOK 20.00 per share for the 2021 financial year. The
Board proposes the following allocation of the year’s profit:
Dividend provision NOK 2,354 million
Transferred from other equity NOK -561 million
Total NOK 1,792 million
At the close of the year, the company had a distributable reserve of NOK 5,468 million.
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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 the section “Outlook” for comments on the update on the Covid-
19 pandemic and potential implications of the war in Ukraine and Note
4.8 for details with respect to allegations of price fixing.
SalMar has board liability insurance which covers both the Board of
Directors and also 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 eorts to deal with the lice situation.
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. SalMar
Aker Ocean could lead to new and better locations being used. Selec-
tive 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 the 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 eective response capability to deal
with biological challenges. Our harvesting capacity at InnovaMar and
InnovaNor enables us to respond eectively. Furthermore, SalMar has
good access to wellboat capacity.
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 oce, and financial hedging instruments
are employed where they are considered appropriate.
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
it has sucient flexibility both operationally and with respect to the
financing of investments in SalMar’s operations. 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 busi-
ness operations.
It is the Group’s policy that no trading in derivatives for speculative
purposes may be undertaken.
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, 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
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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 and 4.10.
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. The risk is partly reduced by the
opposite eect on cash equivalents which earn floating interest. In
2021 the Group has entered into a cross-currency interest swap and
an interest swap to manage the interest rate. At 31 December 2021,
after taking into account the eect of interest rate swaps, approxi-
mately 24% of the Group’s borrowings are at a fixed rate of interest
(2020: 0%). For more details regarding the swaps and the new interest
swap contracts entered into early in 2022, see Note 3.9 and 4.10.
Price risk
SalMar’s entire business is related to salmon and is therefore directly
aected by developments in salmon prices. 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 2021, the spot price
of Atlantic salmon fluctuated between NOK 74.72 and NOK 42.67
per kg, measured weekly.
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 aected
by a number of external factors. Fluctuations in sea temperatures,
the spread of sea lice and outbreaks of disease are all factors which,
directly or indirectly, aect fish growth and thus supply. As a conse-
quence, 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 25 percent of the Group’s volume was sold
under fixed-price contracts in 2021.
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 sucient cash, cash equivalents or short
and medium-term credit facilities to meet its day-to-day funding
requirement. The Group prepares regular cash-flow forecasts to ensure
that it has sucient 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.
In 2021 SalMar received initial A- credit rating from Nordic Credit
Rating, please visit their website for their latest assessment of the
credit rating.
R&D
For many years, SalMar has engaged with various R&D environments,
including partnerships 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 eorts, while production sta are becoming
increasingly experienced with regard 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.
The scale of SalMar’s R&D activities in a wide range of fields was
substantial in 2021. 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
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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 eorts in the field of breeding and genetics include a collab-
oration with Benchmark Holding PLC’s subsidiary SalmoBreed, through
the joint venture, SalMar Genetics. SalMar is pleased to see that 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 oer
synergies in other areas that SalMar is focusing on.
In 2021, SalMar expanded its R&D activities in the area of feed and
feeding in collaboration with its main feed provider. SalMar sees a sub-
stantial need for greater focus on basic knowledge of how the fish
are fed and how we can ensure that the entire population enjoys opti-
mal 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. To contribute to this,
SalMar provides funds for a professorship in the field of aquaculture
at the Norwegian University of Science and Technology (NTNU).
For many years, fish farming in the open ocean has been an important
part of SalMar’s strategy to ensure sustainable growth. In 2016, the
company’s Ocean Farm project was the first to be awarded special
development licences. Since then, the company has completed two
successful production cycles at this pioneering facility, located in
a weather-beaten and exposed area of sea o the Trøndelag coast.
Experience gained is being incorporated into a new version, Ocean
Farm 2 for which concept and engineering phase work is well under-
way. A third development project is also underway, this time for the
world’s first fully oshore fish farm, the Smart Fish Farm. This instal-
lation is being designed with more than twice the capacity of the
Group’s Ocean Farm 1. SalMar has been granted eight development
licences for this novel deep-water project.
In 2021 and as mentioned above, the company further strengthened
its eorts in this field by transferring its activities and channelling
all further R&D eorts and investments in oshore fish farming into
SalMar Aker Ocean, jointly owned with Aker. The owners aim to make
SalMar Aker Ocean the world’s largest salmon producer.
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.
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, aording 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.
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In 2021, SalMar employed a total of 1,960 full-time equivalents from
43 dierent countries. This is 197 full-time equivalents more than in
2020. The workforce was made up of 535 women and 1,425 men. The
female ratio of the Senior Management is 20%. 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 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 parts of our value chain in 2021. This
shows that SalMar’s continuous eorts to increase the female ratio of
its workforce is eective. The percentage of women is considerably
higher at the Group’s harvesting and processing facilities than at its
hatcheries and fish farms. Therefore, these areas will be of particular
focus in SalMar’s future eorts.
In its Code of Conduct, the Group makes its policy plain 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 responsibilities.
This attitude springs from the acknowledgement that diversity con-
tributes to a better working environment, greater adaptability and
better results in the long term.
SalMar complies with national regulations also with regards to working
hours and sucient 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.
Shares and Shareholders
In 2021 the share price increased 20.7 percent from the closing price
of NOK 503.60 at the end of 2020. The price on 30 December, the
last day of trading in 2021, was NOK 608.00 per share.
SalMar held its AGM on 8 June 2021. 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 2021.
On 8 June 2021, SalMar announced that it had successfully completed
a private placement of new shares, which raised gross proceeds of
NOK 2,709 million. A total of 4.5 million new shares were issued. The
net proceeds of the private placement will be used for SalMar’s growth
ambitions through strategic acquisitions along the entire value chain.
This includes the purchase of salmon production licences, the acqui-
sition of companies, and investments in the organic expansion of
smolt production and coastal fish farming, as well as harvesting and
processing activities.
As of 31 December 2021, SalMar had a total of 117,799,999 shares
outstanding, divided between 13,731 shareholders. The compa-
ny’s major shareholder, Kverva Industrier AS, owns 50.88 percent of
the shares.
The 20 largest shareholders own a total of 72.25 percent of the
shares. SalMar ASA is the 109th largest shareholder with 102,361
shares, corresponding to 0.1 percent of the total number of shares
outstanding as of 31 December 2021.
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 four 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
Former board chair Atle Eide notified the nomination committee that
he would not seek re-election at the annual general meeting (AGM) on
8 June 2021. Consequently, and as recommended by the nomination
committee, the AGM voted to elect Leif Inge Nordhammer as Board
Chair and Magnus Dybvad as a new member of the Board, and re-elect
Margrethe Hauge as member of the Board, all for terms of two years.
In November 2021, Tonje Foss resigned her seat on SalMar ASA’s Board
of Directors. The decision followed her appointment to a new position
in the aquaculture industry outside SalMar.
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Information relating to the competence and background of the various
board members is available from SalMar’s website www.salmar.no.
Outlook
Market outlook
In 2022 figures from Kontali, a leading provider of aquaculture data
and research, estimate a global harvest volume at the same level as in
2021. The global volume of salmon harvested is expected to decrease
by 3,000 tonnes or 0.1% percent.
The harvested volume is expected to be more or less at the same level
in Norway, Chile and UK. Increase in other markets with 7.5 per cent.
And it is expected to decrease with 9.4 per cent in North America
and 7.1 per cent in Faroes.
The limited growth in supply while at the same time public health
measures due to Covid-19 are lifted in markets across the globe, gives
an optimistic market outlook for 2022.
Supply of Atlantic salmon
in 1,000 tonnes WFE
2022E Change
Norway 1,541 0.6%
Chile 717 -0.5%
UK 200 0.8%
North America 143 -9.4%
Faeroes 98 -7.1%
Other countries 192 7.5%
Total, global supply 2,890 -0.1%
Outlook for SalMar and its associates
SalMar expects to harvest a higher volume in 2022 than in 2021.
SalMar expects to harvest 175,000 tonnes in Norway and 16,000
tonnes in Iceland in 2022. In addition, SalMar expects its share of
the volume harvested by Norskott Havbruk (50 percent) to come to
23,000 tonnes in 2022. This totals a harvest volume of 214,000
tonnes or an increase of 8% from 2021.
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 2022, SalMar expects a contract share of around 30 percent
for the full year of the expected volume harvested. The contracts
portfolio average price and volume is relatively stable through the
whole of 2021, where the prices on contracts are higher than the
contract prices in 2021.
Over time, SalMar has invested heavily to increase its competence
and capacity to handle biological challenges in the best possible
way. These eorts have paid o, and the biological situation for Fish
Farming Central Norway and Fish Farming Northern Norway is good.
The situation in Iceland has improved considerably compared with
2020, and the outlook for 2022 is good.
SalMar has a high level of preparedness at its harvesting facility,
to ensure that extraordinary events can be handled in compliance
with the regulations. The completion of InnovaNor, Northern Nor-
way’s largest and most modern harvesting plant in 2021, will further
improve capacity and operational flexibility in this region. In addition,
eorts are continuously being made to develop the most sustainable
and best production sites. In this context, SalMar’s oshore farming
strategy is crucial.
SalMar will with SalMar Aker Ocean reinforce its position as a leader
with respect to aquaculture technology, and thereby make an impor-
tant contribution to the sustainable development of salmon farming,
both coastal and oshore.
In addition SalMar expects lower cost in the value chain due to grad-
ual ramp up of both harvesting and processing activity at InnovaNor
in Northern Norway in 2022. This reduces the need for purchase
of external harvesting and processing services and improves both
inbound and outbound logistics in the value chain.
Feed is the most important cost factor in salmon farming, accounting
for around 50 percent of total production costs and SalMar expect
slightly higher feed prices in 2022 compared 2021, due to inflation-
ary pressure of raw materials. For comment on impact from war in
Ukraine see outlook.
In total, SalMar expects the cost price of its harvested biomass in
2022 to be on a par with that achieved in 2021.
Investments
SalMar is continuing its ongoing investment programmes. In 2022, it
expects to invest around NOK 1.7 billion in its Norwegian operations
to further develop its already strong platform for growth. The con-
struction of the smolt facilities Senja 2 and Tjuin make up the largest
individual investments.
NOK 0.2 billion is expected to be invested in Iceland, where invest-
ments in increased farming capacity constitutes the largest proportion.
SalMar Aker Ocean expects to invest NOK 0.2 billion for the upgrade
of Ocean Farm 1 and finalizing design of new units Smart Fish Farm
and Ocean Farm 2.
Covid-19 and impact from war in Ukraine
The many public health measures implemented worldwide during the
pandemic increased market uncertainty. Throughout the Covid-19
period, SalMar has nevertheless demonstrated that it is well equipped
to handle challenging situations. The eective rollout of vaccination
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programmes worldwide and the outlook for an end to the pandemic
means that SalMar takes an optimistic view on the future and rein-
forces its confidence in the prospects of the aquaculture sector.
The attack on Ukraine early in 2022 shocked the global community.
For SalMar it is important to show our solidarity with the people of
Ukraine. Together with its employees, SalMar has provided human-
itarian assistance through aid organisations. SalMar is also grateful
that good partners made it possible to send a truck containing 20
tonnes of salmon – 160,000 portions – to be donated and distributed
to the suering people of Ukraine.
SalMar have no assets in neither Russia, Belarus nor Ukraine and as
SalMar has not sold volume to Russia nor Belarus for the last years,
Ukraine as market however has accounted for a marginal proportion of
the volume sold. Nevertheless, with the sanctions imposed following
the war in Ukraine some volume will need to be reallocated from
other salmon farmers which may impact supply into certain markets.
Ukraine is also a large supplier in certain agriculture markets, as a con-
sequence the war creates increased uncertainty and inflationary
pressure on raw material for certain ingredients in the fish feed. SalMar
is well equipped to handle this situation as the company has a strong
partnership with its feed suppliers and is one of the most ecient
salmon producers with a low feed conversion ratio and best results on
key fish welfare indicators. In addition salmon as a protein source is of
the most resource ecient animal protein sources and an increase in
feed cost has a lower impact on salmon producers, compared to other
producers of animal protein.
The ban of the air space over Russia reduces the air freight capacity
to the Asian markets creating logistical challenges. In addition, the
recent increase in energy prices may indirectly impact other cost
elements in our value chain such as transportation and packaging.
The past few years have been challenging and characterised by great
uncertainty not only for the aquaculture sector but for the global
community. With the war in Ukraine uncertainty is likely to remain
a constant for a long time. Through the collective eorts and hard
work of the entire organisation, SalMar has proved its resilience and
ability to navigate in uncertain times and adapt to changing market
conditions. The company has strong financial flexibility, good local
secondary processing capacity and, not least, a corporate culture of
working even harder when the going gets tough.
The Board’s assessment
By means of hard work and dedication over many years, SalMar has
built a strong position in a growing aquaculture industry. Both Norway
and Iceland benefit from excellent natural conditions for the farming
of salmon. SalMar will continue to manage these resources in the best
possible way for its shareholders, employees, customers and aected
local communities.
Based on its strong competitive and financial position, the SalMar
Group aims to retain its standing as one of the world’s leading aqua-
culture companies, with continued good profitability going forward.
The Board’s assessment is that SalMar is well positioned to realise
this ambition. SalMar produces healthy food in a sustainable way,
and the world’s population needs more food. Salmon farming is one
of the most environment-friendly ways of producing food, aording
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.
This is something SalMar will build on in its ongoing eorts to achieve
sustainable growth on the salmon’s terms.
In 2021, SalMar has demonstrated its capacity to adapt to chang-
ing market conditions, delivering strong operational and biological
results and maintaining a robust financial position. On this basis,
SalMar’s board of directors is recommending that a dividend of NOK
20 per share is paid for the 2021 financial year. The board of direc-
tors considers that the company has the financial capacity needed
to achieve further growth, both within traditional coastal and o-
shore-based aquaculture.
The SalMar culture, expressed through our corporate tenets, is fun-
damental 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 is therefore a key focus
area for the Group. The Board of Directors would like to thank all the
company’s employees for the amazing and dedicated eorts they put
in every single day. It is these eorts which have created the SalMar
Group’s excellent results year after year, and which will underpin our
continued success in the years ahead.
Frøya, 31. March 2022
The Board of Directors of SalMar ASA
Leif Inge Nordhammer
Chair of the Board
Margrethe Hauge
Vice-Chair of the Board
Linda L. Aase
Board member
Gustav Witzøe
CEO
Tone Ingebrigtsen
Employee representative
Magnus Dybvad
Board member
Simon Andre Søbstad
Employee representative
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Consolidated Financial Statements of SalMar Group 86
Notes to the Consolidated Financial Statements of SalMar Group 94
Annual Financial Statements of SalMar ASA 157
Notes to the Annual Financial Statements of SalMar ASA 162
Statement by the Board of Directors and CEO 174
Independent Auditor’s Report 175
FINANCIAL
STATEMENTS AND
RESULTS
Contents
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Financial Statements and Results Consolidated Financial StatementsFinancial Statements and Results Consolidated Financial Statements
Contents
Financial Statements and Results Consolidated Financial Statements
Consolidated Financial
Statements
2021
SalMar Group
Consolidated Statement of
Profit or Loss
NOK 1,000 Note 2021 2020
Revenues from contracts with customers 2.2 14,971,988 12,856,778
Other operating revenues 2.2 71,957 55,563
Total operating revenues 15,043,945 12,912,342
Cost of goods sold 7,327,973 5,870,577
Salary and personnel expenses 2.3, 2.4, 2.5 1,539,686 1,319,961
Other operating expenses 2.6, 3.4 2,442,610 1,902,210
Depreciation and amortisation 3.1, 3.3, 3.4 803,136 780,972
Write-downs 3.1, 3.3 3,544 31,121
Total operating expenses 12,116,948 9,904,842
Operational EBIT 2,926,996 3,007,500
Production tax 2.6 -71,601 0
Onerous contracts 3.13 -180,970 -16,030
Fair value adjustments 2.8 776,543 -163,502
Operating profit 3,450,968 2,827,968
Income from investments in associates 3.5 94,879 42,208
Financial items
Interest income 2.9 15,192 10,264
Financial income 2.9 21,453 1,321
Interest expenses 2.9 184,646 149,854
Financial expenses 2.9 10,904 160,261
Net financial items -158,905 -298,531
Profit before tax 3,386,942 2,571,645
Income tax expense 2.10 718,822 563,355
Profit for the year 2,668,120 2,008,290
Profit for the year attributable to:
Non-controlling interests 4.6 51,404 29,272
Shareholders in SalMar ASA 2,616,716 1,979,018
Earnings per share 4.3 22.61 17.52
Earnings per share–diluted 4.3 22.57 17.49
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Consolidated Statement of Other
Comprehensive Income
NOK 1,000 Note 2021 2020
Profit for the year 2,668,120 2,008,290
Other comprehensive income:
Items that may be reclassified to profit or loss in subsequent periods:
Translation dierences in associated companies 3.5 13,824 -3,762
Translation dierences in group companies -97,485 87,902
Translation dierences in group companies
classified as net investments
Gain/loss on hedge of net investment 3.8 17,776 0
Gain/loss on cash flow hedges 3.9 -100,618 174,455
Net change in costs of hedging 3.9 -12,747 0
Tax related to other comprehensive income 2.10 21,030 -38,380
Total other comprehensive income -158,221 212,083
Total comprehensive income 2,509,899 2,220,373
Comprehensive income for the year attributable to
Non-controlling interests 4.6 5,535 56,234
Shareholders in SalMar ASA 2,504,364 2,164,139
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Consolidated Balance Sheet
NOK 1,000
Assets Note 31.12.2021 31.12.2020
Non-current assets
Intangible assets
Licenses 3.1, 3.12 7,487,421 6,172,183
Goodwill 3.1 752,063 441,130
Other intangible assets 3.1 290,986 212,918
Total intangible assets 8,530,470 6,826,230
Property, plant and equipment
Property, plant and equipment 3.3, 3.12 7,133,246 5,554,028
Right-to-use assets 3.4, 3.12 876,803 848,767
Total property, plant and equipment 8,010,049 6,402,795
Non-current financial assets
Investments in associates 3.5 1,174,428 752,562
Investments in shares and other securities 7,512 472
Pension fund assets 2.5 8,655 7,217
Other receivables 3.7 109,898 90,747
Total non-current financial assets 1,300,493 850,998
Total non-current assets 17,841,013 14,080,022
Current assets
Biological assets 3.6, 3.12 7,280,824 5,988,790
Other inventory 3.6, 3.12 647,220 680,999
Total inventory 7,928,044 6,669,789
Receivables
Trade receivables 3.7, 3.12 934,934 588,989
Other current receivables 3.7, 3.9 479,617 435,947
Total receivables 1,414,551 1,024,936
Cash and cash equivalents 3.10, 3.11 901,644 223,447
Total current assets 10,244,238 7,918,172
Total assets 28,085,251 21,998,194
88
Financial Statements and Results Consolidated Financial Statements
Contents
Chapter start
Financial Statements and Results Consolidated Financial Statements
Equity and liabilities Note 31.12.2021 31.12.2020
Equity
Paid-in equity
Share capital 4.2 29,450 28,325
Treasury shares -26 -58
Share premium 3,101,961 415,286
Other paid-in equity 295,105 248,394
Total paid-in equity 3,426,490 691,947
Retained earnings
Retained earnings 9,803,859 9,159,069
Total equity attributable to shareholders of the parent 13,230,349 9,851,016
Non-controlling interests 4.6 2,252,827 1,135,886
Total equity 15,483,176 10,986,902
Liabilities
Non-current liabilities
Deferred tax liability 2.10 2,258,689 1,828,109
Non-current interest-bearing debts 3.11, 3.12 4,906,560 3,677,627
Long-term lease liabilities 3.4, 3.11, 3.12 750,747 769,128
Total non-current liabilities 7,915,996 6,274,865
Current liabilities
Current interest-bearing debts 3.11, 3.12 571,274 1,438,435
Short-term lease liabilities 3.4, 3.11, 3.12 216,419 164,567
Trade payables 3.11 2,317,308 2,056,323
Tax payable 2.10 543,307 537,833
Public duties payable 263,887 110,839
Other current liabilities 3.9, 3.13 773,884 428,430
Total current liabilities 4,686,079 4,736,427
Total liabilities 12,602,075 11,011,292
Total Equity and Liabilities 28,085,251 21,998,194
Frøya, 31 March 2022
Leif Inge Nordhammer
Chair of the Board
Margrethe Hauge
Vice-Chair of the Board
Linda L. Aase
Board member
Magnus Dybvad
Board member
Tone Ingebrigtsen
Employees representative
Simon Andre Søbstad
Employees representative
Gustav Witzøe
CEO
Consolidated Balance Sheet, continued
89
Financial Statements and Results Consolidated Financial Statements
Contents
Chapter start
Financial Statements and Results Consolidated Financial Statements
Consolidated Statement of Changes in Equity
NOK 1,000 Note
Share
capital
Treasury
shares
Share
premium
Other
paid-in
equity
Other
equity
Foreign
currency
translation
dierences
Cash flow
hedges
Hedge of
net invest-
ments
Cost of
hedging
reserve
Attributable
to share-
holders of
the parent
Non-
controlling
interests Total equity
As of 1 January 2020 28,325 -94 415,286 201,508 8,289,417 73,267 0 0 0 9,007,710 732,391 9,740,100
Net profit for the year 0 0 0 0 1,979,018 0 0 0 0 1,979,018 29,272 2,008,290
Other comprehensive income
Translation dierences in associates 3.5 0 0 0 0 0 -3,762 0 0 0 -3,762 0 -3,762
Translation dierences in subsidiaries 0 0 0 0 0 60,939 0 0 0 60,939 26,962 87,902
Other comprehensive income, net after tax 3.9 0 0 0 0 0 0 136,075 -8,131 0 127,943 0 127,943
Total other comprehensive income 0 0 0 0 0 57,178 136,075 -8,131 0 185,121 26,962 212,083
Total comprehensive income 0 0 0 0 1,979,018 57,178 136,075 -8,131 0 2,164,139 56,234 2,220,373
Transactions with shareholders
Share-based payment, expensed 2.4 0 0 0 46,885 0 0 0 0 0 46,885 0 46,885
Share-based payment, tax eect 2.10 0 0 0 0 -1,707 0 0 0 0 -1,707 0 -1,707
Share-based payment, release 2.4 0 36 0 0 -36 0 0 0 0 0 0 0
Dividend 4.2 0 0 0 0 -1,469,874 0 0 0 0 -1,469,874 -23,128 -1,493,002
Contribution of equity 4.6 0 0 0 0 0 0 0 0 0 0 500,931 500,931
Transaction costs related to capital contribution, net of tax 0 0 0 0 0 0 0 0 0 0 -20,976 -20,976
Change in non-controlling interests 4.6 0 0 0 0 109,778 0 0 0 0 109,778 -109,778 0
Other changes 0 0 0 0 -5,914 0 0 0 0 -5,914 212 -5,702
Total transactions with shareholders 0 36 0 46,885 -1,367,754 0 0 0 0 -1,320,832 347,261 -973,571
At 31 December 2020 28,325 -58 415,286 248,394 8,900,681 130,445 136,075 -8,131 0 9,851,016 1,135,886
90
Financial Statements and Results Consolidated Financial Statements
Contents
Chapter start
Financial Statements and Results Consolidated Financial Statements
Consolidated statement of changes in Equity, continued
NOK 1,000 Note
Share
capital
Treasury
shares
Share
premium
Other
paid-in
equity
Other
equity
Foreign
currency
translation
dierences
Cash flow
hedges
Hedge of
net invest-
ments
Cost of
hedging
reserve
Attributable
to share-
holders of
the parent
Non-
controlling
interests Total equity
As of 1 January 2021 28,325 -58 415,286 248,394 8,900,681 130,445 136,075 -8,131 0 9,851,016 1,135,886
Net profit for the year 0 0 0 0 2,616,716 0 0 0 0 2,616,716 51,404 2,668,120
Other comprehensive income
Translation dierences in associates 3.5 0 0 0 0 0 13,824 0 0 0 13,824 0 13,824
Translation dierences in subsidiaries 0 0 0 0 0 -51,616 0 0 0 -51,616 -45,869 -97,485
Other comprehensive income, net after tax 3.9 0 0 0 0 0 0 -78,482 13,865 -9,943 -74,560 0 -74,560
Total other comprehensive income 0 0 0 0 0 -37,792 -78,482 13,865 -9,943 -112,352 -45,869 -158,221
Total comprehensive income 0 0 0 0 2,616,716 -37,792 -78,482 13,865 -9,943 2,504,364 5,535 2,509,899
Transactions with shareholders
Share-based payment, expensed 2.4 0 0 0 54,185 0 0 0 0 0 54,185 1,349 55,534
Share-based payment, tax eect 2.10 0 0 0 0 1,137 0 0 0 0 1,137 -1 1,136
Share-based payment, release 2.4 0 32 0 -7,474 -32 0 0 0 0 -7,474 -8,567 -16,041
Dividend 4.2 0 0 0 0 -2,261,359 0 0 0 0 -2,261,359 -9,800 -2,271,159
Contribution of equity 4.6 1,125 0 2,707,875 0 0 0 0 0 0 2,709,000 639,093 3,348,093
Transaction costs related to capital contribution, net of tax 0 0 -21,201 0 0 0 0 0 0 -21,201 0 -21,201
Change in non-controlling interests 4.6 0 0 0 0 400,167 0 0 0 0 400,167 -400,167 0
Acquisition of non-controlling interests 4.6 0 0 0 0 0 0 0 0 0 0 889,640 889,640
Other changes 0 0 0 0 512 0 0 0 0 512 -141 372
Total transactions with shareholders 1,125 32 2,686,674 46,711 -1,859,574 0 0 0 0 874,969 1,111,405 1,986,374
At 31 December 2021 29,450 -26 3,101,961 295,105 9,657,823 92,653 57,593 5,734 -9,943
91
Financial Statements and Results Consolidated Financial Statements
Contents
Chapter start
Financial Statements and Results Consolidated Financial Statements
Consolidated Statement of Cash Flows
NOK 1,000 Note 2021 2020
Cash flow from operating activities
Profit before tax 3,386,942 2,571,645
Tax paid in the period 2.10 -548,952 -588,455
Depreciation, amortisation and write-downs 3.1, 3.3, 3.4 806,680 812,093
Employee share schemes charged to expenses 2.4 55,534 46,885
Income from associated companies 3.5 -94,879 -42,208
Gains on disposal of shares in group companies -12,913 0
Gains/losses on sale of non-current assets 3.3 1,118 -1,904
Net interest expenses 2.9 169,455 146,643
Onerous contracts 180,970 16,030
Fair value adjustments 2.8 -776,543 163,502
Change in inventory / biological assets at cost -225,517 -639,855
Change in trade receivables -334,089 153,952
Change in trade payables 203,901 547,940
Change in other accruals 96,646 -7,378
Net cash flow from operating activities 2,908,352 3,178,890
Cash flow from investing activities
Cash-flow from sale of property, plant and equipment 3.3 7,082 6,206
Purchase of property, plant and equipment 3.1, 3.3 -2,126,190 -1,729,500
Purchase of intangible assets -98,028 -2,025,885
Receipts from disposal of group companies and other investments 47,575 0
Payments on business combinations, net of cash -326,802 0
Payments related to capital contribution associated company -307,750 0
Purchase of shares and other securities 4.5 -5,000 -13,929
Dividends from associated companies 3.5 2,177 2,144
Loan to third parties -21,268 13,469
Interest received 2.9 1,364 0
Net cash flow from investing activities -2,826,840 -3,747,495
92
Financial Statements and Results Consolidated Financial Statements
Contents
Chapter start
Financial Statements and Results Consolidated Financial Statements
NOK 1,000 Note 2021 2020
Cash flow from financing activities
Proceeds from interest-bearing debts 3.11 3,760,202 1,638,685
Repayment of interest-bearing debts 3.11 -3,138,284 -574,850
Net change in overdraft 3.11 -703,959 837,761
Payment of instalments on lease liabilities 3.4, 3.11 -198,437 -184,285
Payment of interest on lease liabilities 3.4, 3.11 -57,311 -55,217
Interest received 2.9 10,873 3,211
Interest paid 2.9 -104,481 -94,637
Dividend 4.2 -2,271,159 -1,493,002
Net proceeds from issuance of shares in group companies 639,093 479,955
Net proceeds from issuance of shares 2,681,822 0
Share-based payment, release 2.4 -16,041 0
Acquisition of non-controlling interests 4.6 0 -3,990
Net cash flow from financing activities 602,320 553,631
Net change in cash and cash equivalents 683,832 -14,973
Currency translation of cash and cash equivalents -5,634 7,429
Cash and cash equivalents as at 01.01 223,447 230,990
Cash and cash equivalents as at 31.12 3.10 901,644 223,447
Unused drawing rights 4,680,361 1,571,739
Consolidated Statement of Cash Flows, continued
93
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021
Chapter start
Notes to the Financial Statements for 2021
Part 1 General Information
and Accounting Policies
Note 1.1 General Information 95
Note 1.2 Basis of Preparation 95
Note 1.3 Principles of Consolidation 96
Note 1.4 Principles of Classification 96
Note 1.5 Functional Currency and
Translation of Foreign
Currencies 97
Note 1.6 Statement of Cash Flows 97
Note 1.7 Use of Estimates 97
Part 2 Financial Results
Note 2.1 Business Segments 99
Note 2.2 Revenues From Contracts
With Customers and
Material Customers 102
Note 2.3 Salary and Personnel
Expenses 103
Note 2.4 Share-Based Incentive
Scheme 106
Note 2.5 Pensions Plans 108
Note 2.6 Other Operating Expenses 109
Note 2.7 Government Grants 109
Note 2.8 Fair Value Adjustments 109
Note 2.9 Net Financial Items 110
Note 2.10 Income Tax Expense 111
Part 3 Assets and Liabilities
Note 3.1 Intangible Assets 113
Note 3.2 Impairment of Non-
Financial Assets 116
Note 3.3 Property, Plant and
Equipment 118
Note 3.4 Right-of-Use Assets and
Lease Liabilities 120
Note 3.5 Investments in Associated
Companies 123
Note 3.6 Biological Assets and
Other Inventories 125
Note 3.7 Trade and Other
Receivables 128
Note 3.8 Financial Assets and
Financial Liabilities 129
Note 3.9 Hedging Activities and
Derivatives 132
Note 3.10 Cash & Cash Equivalents 136
Note 3.11 Interest-Bearing Debts 137
Note 3.12 Mortgage and Guarantees 140
Note 3.13 Current Liabilities 140
Part 4 Other Notes
Note 4.1 Financial Risk
Management 141
Note 4.2 Share Capital and
Shareholders 144
Note 4.3 Earnings per Share 147
Note 4.4 Group Companies 147
Note 4.5 Business Combinations 148
Note 4.6 Non-Controlling Interests 149
Note 4.7 Related Party
Transactions 152
Note 4.8 Allegations of Price
Collusion 152
Note 4.9 Covid-19 153
Note 4.10 Events Occurring After the
Reporting Period 153
Note 4.11 Alternative Performance
Measures 154
Contents
Chapter start
94
Financial Statements and Results Notes to the Financial Statements for 2021 Note 1.1 General Information
Part 1 General Information and 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 oce is located at Industriveien 51,
7266 Kverva, in the municipality of Frøya.
SalMar’s consolidated financial statements of 31 December 2021 and
for the year as a whole is comprised of SalMar ASA and its subsidi-
aries, as well as the Group’s share of associates. 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 31 March 2022.
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 prepared in
accordance with International Financial Reporting Standards (IFRS) and
interpretations 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 2021, as well as
disclosure requirements pursuant to the Norwegian Accounting Act
at at 31 December 2021.
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)
New and amended standards adopted by the group
No new or amended standards with mandatory eect from 1 January
2021 have had a material impact on the Group's financial report-
ing for 2021.
New standards and interpretations not yet adopted
At the end of 2021, there are some amendments to existing stand-
ards that are not yet eective, but will be relevant for the Group
at implementation. The Group intends to adopt these standards, if
applicable, when they become eective. There are no amendments
that is expected to have a significant impact on the Group’s finan-
cial statements.
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
95
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 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 2021.
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 aect 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 owner’s share or 100%. In the
cases where the fair value of the acquired assets exceeds the amount
paid, the dierence 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.
NOTE 1.4 Principles of Classification
Other assets which is part of the ordinary production cycle, assets
held primarily for sale or are due within 12 months are classified as
current assets. Other assets are classified as non-current assets.
Correspondingly, liabilities which form part of the ordinary production
cycle or are due within 12 months are classified as current liabilities.
Other liabilities are classified as non-current.
The next year’s instalment on long-term debt is classified as a cur-
rent liability.
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 provisions for losses on
physical sales contracts, changes in the unrealised value of Fish Pool
contracts and changes in the unrealised value of forward currency
contracts that have been entered into to hedge future deliveries.
The unrealised value of forward currency contracts classified on this
line are forward contracts which do not qualify for hedge accounting.
Operating profit/loss is reported before fair value adjustment of the
biomass in order to show the Group's underlying sales performance
during the period.
Dividends from investments are recognised when SalMar has an
unqualified right to receive the dividend. Proposed dividends are
recognised as a liability from the date on which the General Meeting
of Shareholders approves payment thereof.
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
96
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 1.5 Functional Currency and Translation of Foreign Currencies
NOTE 1.5 Functional Currency and Translation of Foreign Currencies
The consolidated financial statements are presented in Norwegian
kroner (NOK), which is both the parent company’s functional currency
and the Group’s presentation 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 or are attributable to
part of the net investment in a foreign operation.
The results and financial position of foreign operations that have
a functional currency dierent 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 dierences 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 activ-
ities. 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.
NOTE 1.7 Use of Estimates
Preparation of the financial statements in accordance with IFRS
requires management to make evaluations, estimates and assumptions
which aect 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 aect 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 dier 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
signi ficant 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 aect 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,
dier 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.
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
97
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 1.7 Use of Estimates
There is considerable uncertainty to the estimated remaining pro-
duction costs to harvest. Biological challenges, such as disease and
sea lice infestations, will aect 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 taken as a cost reducing factor in the calculation.
In order to engage in the farming of salmon and trout, 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.
Climate risk
SalMar's work with climate risk analyses was started in 2021 and will
continuing in 2022, this includes analyses how the group operations
may impact the climate and how the climate may impact our value
chain and business. The study analyses both threats and opportuni-
ties and addresses both physical and transitional risks with related
financial impact from each of the risks and opportunities identified.
So far the analysis has not identified climate-related matters that
will substantially aect our assets, provisions or future cash-flow.
For further information related to the climate-risk assessments, see
the sustainability reporting for SalMar Group.
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
98
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.1 Business Segments
Part 2 Financial Results
NOTE 2.1 Business Segments
Accounting policies
Operating segments are reported in a manner consistent with internal
reporting to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assess-
ing performance of the operating segments, has been identified as
the Group management.
The Group’s business areas comprise of Fish Farming and Sales&Indus-
try. In addition, the Group’s operations in Iceland are reported as a sep-
arate unit and are 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.
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, a portion of
the depreciation linked to the Ocean Farm 1 installation has been
transferred from Fish Farming Central Norway to this column. Depreci-
ation corresponding to normal depreciation of an installation with the
same capacity is recognised in the fish farming segment’s accounts.
Depreciation and write-downs other than this is transferred to Other/
Eliminations.
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 Statements and Results Notes to the Financial Statements for 2021
Contents
99
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.1 Business Segments
2021 (NOK 1,000)
Fish Farming
Central Norway
Fish Farming
Northern Norway Sales & Industry Icelandic Salmon Other/ Eliminations SalMar Group
External operating revenue - sale of goods and services 18,590 74,096 13,996,658 882,644 0 14,971,988
Internal operating revenue–sale of goods and services 6,489,897 3,265,327 377,178 34,665 -10,167,067 0
Total revenues from contracts with customers 6,508,487 3,339,423 14,373,836 917,310 -10,167,067 14,971,988
Compensation 7,636 0 0 0 0 7,636
Rental income 390 2,535 0 0 0 2,925
Other operating revenues 25,410 675 32,591 1,539 1,180 61,395
Total operating revenues 6,541,923 3,342,633 14,406,427 918,848 -10,165,887 15,043,945
Depreciation and amortisation 427,431 148,288 85,095 59,853 82,468 803,136
Write-downs 3,013 0 0 0 531 3,544
Other operating expenses 3,992,979 1,951,839 14,473,395 784,989 -9,892,934 11,310,268
Operational EBIT 2,118,499 1,242,506 -152,063 74,007 -355,953 2,926,996
Production tax -71,601
Onerous contracts -180,970
Fair value adjustments 776,543
Operating profit/loss 3,450,968
Income from investments in associates 94,879
Net financial items -158,905
Profit before tax 3,386,942
Tax 718,822
Net profit for the year 2,668,120
Investments in PP&E 806,668 568,685 611,178 135,540 4,119 2,126,190
Investments in right-to-use assets 145,475 0 0 39,143 0 184,618
Investments in licences 0 0 0 4,392 0 4,392
Investments–business combinations 322,529 0 0 4,273 0 326,802
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.1 Business Segments
2020 (NOK 1,000)
Fish Farming
Central Norway
Fish Farming
Northern Norway Sales & Industry Icelandic Salmon Other/ Eliminations SalMar Group
External operating revenue–sale of goods and services 15,746 164,471 12,031,915 644,646 0 12,856,778
Internal operating revenue–sale of goods and services 5,854,366 2,432,669 340,232 17,691 -8,644,957 0
Total revenues from contracts with customers 5,870,111 2,597,139 12,372,147 662,337 -8,644,957 12,856,778
Compensation 0 10,900 0 0 0 10,900
Rental income 270 2,835 0 0 0 3,105
Other operating revenues 24,937 1,979 20,708 0 -6,063 41,559
Total operating revenues 5,895,318 2,612,852 12,392,855 662,337 -8,651,020 12,912,342
Depreciation and amortisation 403,142 149,952 65,940 65,393 96,545 780,972
Write-downs 8,542 0 1,986 7,574 13,018 31,121
Other operating expenses 3,265,243 1,615,147 12,042,580 639,860 -8,470,080 9,092,750
Operational EBIT 2,218,390 847,754 282,349 -50,490 -290,503 3,007,500
Onerous contracts -16,030
Fair value adjustments -163,502
Operating profit/loss 2,827,968
Income from investments in associates 42,208
Net financial items -298,532
Profit before tax 2,571,645
Tax 563,355
Net profit for the year 2,008,290
Investments in PP&E 313,337 459,670 848,535 105,041 2,903 1,729,487
Investments in right-to-use assets 349,763 19,995 23,116 22,278 0 415,151
Investments in licences 1,166,876 798,148 0 0 0 1,965,024
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021
NOTE 2.2 Revenues From Contracts With Customers and Material Customers
Accounting policies
Revenue from sale of goods derives mainly from sale of fresh whole
Atlantic salmon and a wide variety of fresh and frozen salmon prod-
ucts, either on spot sales or from contracts. Revenues from the sale
of services relate primarily to the sale of harvesting services. Reve-
nues are 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 those goods. Revenue is
recognised at the point in time when control of the goods is transferred
to the customer. That is typically when the goods are picked up by the
carrier or at delivery to a terminal or the customer. This depends on
the delivery terms and varies from customer to customer. The normal
credit period is 30 days net.
For further details, see Note 2.1 for operating revenues relating to
the Group's business segments.
Specification of revenues
(NOK 1,000): 2021 2020
Sale of goods 14,775,608 12,674,010
Sale of services 196,380 182,768
Total revenues from
contracts with customers
14,971,988 12,856,778
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 (NOK 1,000): 2021 % 2020 %
Asia 3,633,758 24.3% 2,792,997 21.7%
USA/ Canada 3,043,322 20.3% 2,439,418 19.0%
Europe, ex. Norway 5,660,564 37.8% 5,269,216 41.0%
Norway 2,436,668 16.3% 2,218,055 17.3%
Other 197,676 1.3% 137,092 1.1%
Total Revenues from contracts with customers 14,971,988 100.0% 12,856,778 100.0%
Specification of the Group’s revenues by currency (NOK 1,000): 2021 % 2020 %
NOK 3,886,962 26.0% 3,642,098 28.3%
JPY 835,185 5.6% 682,301 5.3%
GBP 122,535 0.8% 119,117 0.9%
USD 5,256,281 35.1% 4,043,816 31.5%
EUR 4,238,755 28.3% 3,852,666 30.0%
SEK 261,451 1.7% 240,164 1.9%
KRW 61,158 0.4% 77,943 0.6%
CAD 310,149 2.1% 189,947 1.5%
ISK -488 0.0% 8,728 0.1%
Total Revenues from contracts with customers 14,971,988 100.0% 12,856,778 100.0%
Note 2.2 Revenues From Contracts With Customers and Material Customers
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.3 Salary and Personnel Expenses
NOTE 2.3 Salary and Personnel Expenses
Salary and personnel expenses:
NOK 1,000 2021 2020
Salaries and other short-
term employee benefits
1,268,190 1,097,051
Social security expenses 92,055 72,056
Pension expenses 68,307 59,555
Employee share schemes
charged to expenses
55,534 46,885
Other benefits 55,600 44,415
Total 1,539,686 1,319,961
Average number of full-time
employee equivalent in the Group
1960 1763
Auditor:
Breakdown of total auditor’s fee:
2021–NOK 1,000 EY Others
1
Audit services 2,269 2,192
Other certification services 562 0
Tax advisory services 490 0
Other services 244 250
Total 2021 3,565 2,442
2020–NOK 1,000 EY Others
1
Audit services 1,695 3,442
Other certification services 40 0
Tax advisory services 580 17
Other services 1,687 604
Total 2020 4,001 4,064
1 Some of the fees disclosed are inclusive of VAT.
Loans and guarantees granted to employees:
NOK 1,000 Loans Guarantees
Employees 1,119 0
No loans have been granted to any of the Group’s senior executives.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.3 Salary and Personnel Expenses
Remuneration Paid to Executive Managment 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.
Executive Management 2021–NOK 1,000 Base salary Pension Benefits Total fixed remuneration Bonus Shares
Total variable
remuneration Total remuneration
Gustav Witzøe, CEO 2,011 70 10 2,090 0 0 0 2,090
Trine Sæther Romuld, CFO & COO 2,939 126 10 3,075 650 1,336 1,986 5,061
Frode Arntsen, COO Industry & Sales 2,194 78 10 2,282 650 1,562 2,212 4,494
Ulrik Steinvik, Director Business Improvement 1,931 74 10 2,014 650 1,374 2,024 4,039
Roger Bekken, COO Farming 2,247 85 47 2,379 650 1,601 2,251 4,629
Total earned 2021 11,321 433 85 11,840 2,600 5,873 8,473 20,313
Executive Management 2020–NOK 1,000 Base salary Pension Benefits
Total fixed
remuneration Bonus Shares
Total variable
remuneration Total remuneration
Gustav Witzøe, CEO 2,048 54 10 2,112 0 0 0 2,112
Trine Sæther Romuld, CFO & COO 2,729 126 10 2,866 650 348 998 3,863
Frode Arntsen, COO Industry & Sales 2,142 78 10 2,230 650 1,466 2,116 4,346
Ulrik Steinvik, Director Business Improvement 1,883 73 10 1,967 575 1,348 1,923 3,889
Roger Bekken, COO Farming 2,192 85 146 2,423 650 1,329 1,979 4,402
Total earned 2020 10,994 415 188 11,597 2,525 4,490 7,015 18,613
Fixed remuneration
Fixed remuneration
Variable remuneration
Variable remuneration
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.3 Salary and Personnel Expenses
Board of Directors 2021 - NOK 1,000 Annual base fee Audit and Risk Committee Nomination Committee Salary and benefits Total remuneration
Leif Inge Nordhammer, Chair of the Board (Chair of the Board from 8 June 2021) 375 0 0 0 375
Margrethe Hauge, Vice-Chair of the Board 263 110 0 0 373
Linda Litlekalsøy Aase, Board Member 263 0 0 0 263
Magnus Dybvad, Board Member (from 8 June 2021) 138 0 0 0 138
Employee representatives
Simon Andre Søbstad, Board Member 69 0 0 2,492 2,561
Tone Ingebrigtsen, Board Member 69 0 0 959 1,028
Nomination Committee
Bjørn M. Wiggen, Chair of the Nomination Committee 0 0 40 0 40
Endre Kolbjørnsen 0 0 25 0 25
Karianne O. Tung (from 8 June 2021) 0 0 13 0 13
Former members of the Board of Directors and the Nomination Committee
Tonje E. Foss, Board Member (former representative until 11 November 2021) 263 75 0 0 338
Atle Eide, Chair of the board (former representative until 8 June 2021) 225 0 0 0 225
Brit Elin Soleng, Employee representative (former representive until 8 June 2021) 63 0 0 766 828
Jon Erik Rosvoll, Employee representative (former representive until 8 June 2021) 63 0 0 786 849
Anne Kathrine Slungård, Nomination Committee (former representative until 8 June 2021) 13 0 0 0 13
Total remuneration 2021 1,800 185 78 5,003 7,066
Board of Directors 2020–NOK 1,000 Annual base fee Audit and Risk Committee Nomination Committee Salary and benefits Total remuneration
Atle Eide, Chair of the Board 435 0 0 0 435
Margrethe Hauge, Vice-Chair of the Board 238 50 0 0 288
Leif Inge Nordhammer, Board Member (from 3 June 2020) 125 0 0 0 125
Linda Litlekalsøy Aase, Board Member (from 3 June 2020) 125 0 0 0 125
Tonje E. Foss, Board Member (from 3 June 2020) 125 35 0 0 160
Employee representatives
Brit Elin Soleng, Board Member 119 0 0 750 868
Jon Erik Rosvoll, Board Member 119 0 0 725 843
Nomination Committee
Bjørn M. Wiggen, Chair of the Nomination Committee 0 0 40 0 40
Endre Kolbjørnsen (from 3 June 2020) 0 0 13 0 13
Anne Kathrine Slungård 0 0 25 0 25
Former members of the Board of Directors and the Nomination Committee
Kjell A. Storeide, Board Member (former representative until 3 June 2020) 113 45 0 0 158
Helge Moen, Board Member (former representative until 3 June 2020) 113 30 0 0 143
Trine Danielsen, Board Member (former representative until 7 February 2020) 113 0 0 0 113
Total remuneration 2020 1,624 160 78 1,474 3,336
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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
awarded. The fair value of RSU entitlements that are not at mar-
ket terms are valued at the share price in eect when the RSUs
are awarded. 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 most important
input data when calculating the value of RSU entitlements are the
share price on the date they are awarded, volatility, risk-free interest,
expected yield and accrual period.
The value is established when they are awarded 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 expected accrual 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 of 31 December 2021, the scheme encompassed up to
234,954 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 an vesting period subject to predefined perfor
-
mance 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 aords a contingent
entitlement to one share. The award of RSUs in each of the three
vesting periods rests on the following performance criteria:
• ⅓ of the RSUs will vest irrespective of the
performance criteria.
• ⅓ 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.
• ⅓ 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 awarded. The total fair value of the entitlements as of
31 December 2021 is calculated to be NOK 142.9 millions (2020:
NOK134.0millions). The cost is expensed over the vesting period, and
a total of NOK 53.0 millions was charged to expenses in connection
with the scheme in 2021 (2020: NOK 45.2 millions). 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
2021 award was formally made on 20 December 2021, the share
price was NOK 576.60. (2020: NOK 475.00).
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, expected yield and the accrual period. Based on the
Monte-Carlo simulation, each RSU entitlement is worth NOK 544.46
for those awarded on 21 December 2021, NOK 456.03 for those
awarded on 17 December 2020 and NOK 352.72 for those awarded
on 30 January 2020.
In 2021, 129,710 RSUs were exercised. The market price per share
at the time the RSUs were exercised was NOK 634.93. Correspond-
ingly, 145,070 RSUs were exercised in 2020. The market price per
share on the date these RSUs were exercised was NOK 519.89. The
value of the RSUs exercised is treated as a salary payment to the
individual employee.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.4 Share-Based Incentive Scheme
Movements in the no. of outstanding RSUs:
2021 2020
1 January 265,311 166,572
Granted during the year * 107,845 267,336
Released during the year -129,710 -145,070
Forfeited -17,106 -12,779
Performance adjustment - -14,152
Dividend adjustment 8,614 3,404
31 December 234,954 265,311
* The award for 2019 was formally made on 30 January 2020, when a total of 132,281 RSUs were granted. The
award for 2020 was formally made on 17 December 2020, when a total of 135,055 RSUs were granted.
Calculation of the year’s award was based on the following parameters:
2021 2020 2020
Date of award 20.12.2021 17.12.2020 30.01.2020
Plan 2021 2020 2019
Share price on date of issue 576.60 475.00 457.00
Weighted average fair values at the measurement date 544.46 456.03 352.72
Dividend yield (%) 0% 0% 0%
Expected volatility (%) 29.61% 36.15% 31.42%
Risk-free interest rate (%) 1.08% 0.23% 1.32%
Expected lifetime 1.92 1.92 1.78
Model used
Monte Carlo &
Black-Scholes
Monte Carlo &
Black-Scholes
Monte Carlo &
Black-Scholes
Vesting period for the outstanding RSUs at year end:
Date granted Vesting period 2021 2020
21.1.2019 2018-21 0 43,561
30.1.2020 2019-21 0 43,310
30.1.2020 2019-22 41,347 43,385
17.12.2020 2020-21 0 44,958
17.12.2020 2020-22 43,103 45,038
17.12.2020 2020-23 43,124 45,059
20.12.2021 2021-22 35,729 0
20.12.2021 2021-23 35,804 0
20.12.2021 2021-24 35,847 0
Outstanding RSUs as at 31 December 234,954 265,311
Outstanding RSUs–group management:
Out standing
per 01.01 Granted Released
Dividend
adjustment
Performance
adjustments
Outstanding
per 31.12
Trine Sæther Romuld,
CFO & COO
5,086 2,507 -2,104 165 0 5,654
Ulrik Steinvik,
Director Business Improvement
4,107 1,647 -2,169 129 0 3,714
Frode Arntsen,
COO Industry & Sales
4,668 1,872 -2,466 147 0 4,221
Roger Bekken, COO Farming 4,778 1,918 -2,521 147 0 4,322
Share option agreement–Icelandic Salmon AS:
At the beginning of the year Icelandic Salmon AS had a share-based incentive scheme with the CEO.
A total of 165,000 options had been granted at an exercise price of NOK 60.00 per share, and the
Company had choice of settling either in shares or cash. The grant date was 28 September 2018 and
the options vested over a three year period. The terms of the arrangement provided Icelandic Salmon
with the choice of cash settlement or issuing equity instruments. The options were settled in 2021
in cash with reference to the closing share price of NOK 155.00 on 17 November 2021. Total amount
expensed during 2021 was NOK 548,644.
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. The option holders must stay in the employment of the group over a three year vesting
period from the grant date 19 February 2021 until 19 February 2024. As at 31 December 2021. Total
amount of NOK 1,563,776 was expensed as other employee benefits, with a corresponding entry to
other paid in equity.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.5 Pensions Plans
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 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.
Specification of the pension cost for the Group:
NOK 1,000 2021 2020
Defined-contribution scheme 48,001 41,750
Defined-benefits plan (Early
Retirement Pension)
20,187 17,641
Employers' national insurance contributions 4,192 3,755
Total pension cost 72,380 63,146
NOK 1,000 2021 2020
Prepaid pension contributions 8,655 7,217
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 under-
lying financial position and results with sucient reliability, and there
-
fore recognises it as a defined-contribution scheme. This means
that liabilities in respect of the Early Retirement Pension are not
capitalised. Contribution paid into the scheme are charged to expenses
as they accrue.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.6 Other Operating Expenses
NOTE 2.6 Other Operating Expenses
Specification of other operating
expenses (NOK 1,000): 2021 2020
Maintenance 236,811 257,741
Energy 204,235 139,297
Third-party services 141,163 145,855
Freight 1,275,835 1,054,179
Insurance 44,703 39,510
Travel cost 13,743 10,621
Other operating expenses 526,120 255,008
Total other operating expenses: 2,442,610 1,902,210
Production tax
A production tax amounting to NOK 0.40 per kg gutted weight was
introduced on the Norwegian business with eect from 1 January
2021. Similarly, a resource tax was introduced in Iceland with eect
from 1 January 2020. The latter of this amount will increase gradu-
ally over a seven-year period. Of the total cost of NOK 71.6 million,
NOK 68.5 million is related to the activity in Norway and NOK 3.1
million is related to the activity in Iceland. To highlight the perfor-
mance 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. In Iceland, the resource
tax was introduced with eect from 1 January 2020. Due to the
gradual application of Iceland's new resource tax, the eect in 2020
was immaterial. Its impact has therefore not been reclassified in the
comparable figures.
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 2021, Group companies recognised NOK 8.3 million in tax incentives
under the SkatteFUNN scheme and de-recognised NOK 7.5 million
in SkatteFUNN-related amounts in respect of capitalised operating
assets. (2020: NOK 4.1 million recognised in income, and de-recog-
nised NOK 4.7 million in Skatte-FUNN-related amounts in respect of
capitalised operating assets).
In 2021, Group companies received NOK 1.3 million in government
grants to cover extra costs related to Covid-19. The grants are rec-
ognised in other operating revenues.
NOTE 2.8 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 2021 2020
Change in the fair value of
the biological assets
835,155 -186,136
Change in unrealised value
of Fish Pool contracts
-14,368 -8,560
Change in the unrealised value of
forward currency contracts
-44,245 31,194
Total fair value adjustments 776,543 -163,502
See Note 3.6 for details regarding change in fair value of biological
assets and Note 3.9 for details regarding change in fair value of
Fish Pool contracts and change in unrealised value of forward cur-
rency contracts.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.9 Net Financial Items
NOTE 2.9 Net Financial Items
Financial items (NOK 1,000): 2021 2020
Interest income 15,192 10,264
Other exchange dierences 2,662 0
Change in fair value of derivatives 18,373 0
Other financial income 418 1,321
Total financial income 21,453 1,321
Interest expenses 184,646 149,854
Other exchange dierences 0 139,491
Change in fair value of derivatives 0 13,418
Other financial expenses 10,904 7,352
Total financial expenses 10,904 160,261
Net financial items -158,905 -298,531
Included in interest income an amount of total NOK 12.5 million relates
to interest from the cross-currency interest swap.
Changes in fair value of derivatives through profit or loss relates to
ineciency in forward currency contracts which do qualify for hedge
accounting. For more details see note 3.9.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.10 Income Tax Expense
NOTE 2.10 Income Tax Expense
Accounting policies
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 other comprehensive
income or in equity are recognised in other comprehensive income or
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 dierences
between accounting and taxation values at the close of the account-
ing year. Deferred tax assets arise from temporary dierences 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 dierences, and the carry forward of
unused tax credits and unused tax losses, can be utilised.
Tax increasing and tax decreasing temporary dierences are oset
against each other to the extent that the taxes can be net settled
within one tax regime.
NOK 1,000
Tax expense in the profit or loss: 2021 2020
Tax payable 531,569 537,833
Change in deferred tax 167,023 15,594
Tax paid abroad 21,322 9,888
Adjustment for tax of prior periods -1,092 40
Tax on ordinary profit 718,822 563,355
Tax payable in the balance sheet 2021 2020
Tax payable for the year–Norway 530,623 534,818
Tax payable for the year–abroad 12,685 3,015
Tax payable in the balance sheet 543,307 537,833
Breakdown of temporary dierences 2021 2020
Non-current assets 4,673,632 3,237,423
Inventory 6,612,365 5,462,957
Receivables -9,024 -7,600
Derivatives 38,453 233,129
Provision onerous contracts -203,040 -22,070
Other -153,099 -229,905
Tax losses carried forward -596,577 -265,247
Total temporary dierences 10,362,709 8,408,688
Total temporary dierences in Norway 9,307,368 7,318,590
Total temporary dierences abroad 1,055,341 1,090,099
Total temporary dierences 10,362,709 8,408,688
Deferred tax liabilities (+) / tax assets (-) 2,258,689 1,828,109
Tax rate used to calculate deferred tax in Norway 22% 22%
Tax rate used to calculate deferred tax abroad 20% 20%
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 2.10 Income Tax Expense
NOK 1,000
Change in carrying amount of net deferred tax: 2021 2020
Deferred tax liability at 1 January 1,828,109 1,757,557
Deferred tax liability associated with acquisitions 305,755 3,341
Change in deferred tax liability 167,023 15,594
Deferred tax liability associated with equity transactions -7,113 1,707
Deferred tax liability on items recognised in OCI -21,030 38,380
Deferred tax related to disposal of group companies -3,105 0
Translation dierences -10,950 11,530
Deferred tax liability at 31 December 2,258,689 1,828,109
Tax reconciliation: 2021 2020
Profit before tax 3,386,942 2,571,645
Tax calculated at nominal tax rate (22%) 745,127 565,762
Dierence in overseas tax rates -6,014 211
Permanent dierences (22%) -39,674 -12,546
Tax paid abroad 21,322 9,888
Withholding tax -847 0
Adjustment of income tax from previous years -1,092 40
Calculated tax expense 718,822 563,355
Eective tax rate 21.2% 21.9%
Permanent dierences apply to the following: 2021 2020
Share-based payment, expensed 12,156 10,185
Share-based payment, released -17,918 -16,495
Government grants -3,470 -899
Share of profit/loss from associates -20,853 -9,420
Gain from disposal of group companies and other investments -4,423 0
Non-taxable income from branch oce -6,163 -5,143
Other 997 9,226
Total -39,674 -12,546
Tax losses carried forward are mainly related to the companies in
the subgroup SalMar Aker Ocean and Arnarlax Ehf. in Iceland, and
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.
Financial Statements and Results Notes to the Financial Statements for 2021
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Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 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 measured at the 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.
Costs relating to research are charged to expenses as they accrue.
Development costs are capitalised when specific criteria relating
to future benefits are met. Capitalised development costs are rec-
ognised 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 being 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
Licenses 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 amortisated, but tested annnually for impairment. The group
has three time-limited demonstration licenses. It is considered that
a renewal of these licenses is probable, and therefore, they are consid-
ered to have an indefinite useful life. Any value identified in connection
with the acquisition of licences is capitalised as an intangible asset.
Iceland
The sea farming licenses in Iceland are issued, in accordance with the
current regulations, with a nominal lifespan of 16 years. The licenses
will be renewed if the applicant meets the requirements set pursuant
to statute and regulation at the time the license comes up for renewal.
A small fee must be paid for the license renewal. This means that sea
farming licenses are operated in a 16-year rolling lifespan system,
where the licenses 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 dierence is entered as goodwill in the
statement of financial position. Goodwill deriving from purchases of
subsidiaries is presented under intangible assets. Goodwill is not depre-
ciated but is tested for impairment annually if 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.
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.1 Intangible Assets
NOK 1,000 Licences Goodwill
Other intangible
assets Total
Acquisition cost at 1 January 2021 6,193,183 464,855 287,142 6,945,180
Additions through business combinations 1,375,580 324,933 0 1,700,513
Additions 4,392 0 93,636 98,028
Disposal group companies 0 -14,000 0 -14,000
Currency translation dierences -64,734 0 0 -64,734
Acquisition cost at 31 December 2021 7,508,421 775,788 380,778 8,664,987
Accumulated depreciation & write-downs at 1 January 2021 21,000 23,725 74,223 118,948
Depreciation 0 0 15,568 15,568
Accumulated depreciation & write-downs at 31 December 2021 21,000 23,725 89,791 134,517
Carrying amount at 31 December 2021 7,487,421 752,063 290,986 8,530,470
Estimated lifetime Indefinite Indefinite 5-50 years
Depreciation method Linear
NOK 1,000 Licenses Goodwill
Other intangible
assets Total
Acquisition cost at 1 January 2020 4,148,803 464,855 226,280 4,839,939
Additions 1,965,024 0 60,861 2,025,885
Currency translation dierences 79,356 0 0 79,356
Acquisition cost at 31 December 2020 6,193,183 464,855 287,142 6,945,180
Accumulated depreciation & write-downs at 1 January 2020 21,000 18,390 58,615 98,005
Depreciation 0 0 15,608 15,608
Write-downs 0 5,335 0 5,335
Accumulated depreciation & write-downs at 31 December 2020 21,000 23,725 74,223 118,948
Carrying amount at 31 December 2020 6,172,183 441,130 212,918 6,826,230
Estimated lifetime Indefinite Indefinite 5-50 years
Depreciation method Linear
The majority of other intangible assets totalling NOK 291.0 million are
made up of capitalised development costs. NOK 10.5 million of this is
comprised of capitalised development costs relating to the develop-
ment of the Ocean Farm 1 installation. These costs are amortisated
over 5 years. A further NOK 228.2 million relates to the development
of the Group’s new Smart Fish Farm concept. This project is still in
the development phase and amortisation has not yet commmenced.
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 2021 was
NOK 23.2 million.
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.1 Intangible Assets
Specification of fish farming licences 2021 (NOK 1,000) MAB tonnes Acquisition cost Carrying amount 31.12.2021
Fish Farming Northern Norway 38,251 2,011,062 2,006,062
Fish Farming Central Norway 69,538 4,180,149 4,164,148
Norway 107,789 6,191,211 6,170,210
Icelandic Salmon 25,200 1,271,890 1,317,211
Group 132,989 7,463,101 7,487,421
Specification of fish farming licences 2020 (NOK 1,000) MAB tonnes Acquisition cost Carrying amount 31.12.2020
Fish Farming Northern Norway 38,251 2,011,062 2,006,062
Fish Farming Central Norway 64,038 2,810,149 2,794,149
Norway 102,289 4,821,211 4,800,211
Icelandic Salmon 25,200 1,267,498 1,371,972
Group 127,489 6,088,710 6,172,183
Specification of goodwill 2021 (NOK 1,000) Acquisition year Acquisition cost Carrying amount 31.12.2021
Fish Farming Northern Norway 2006 95,114 95,114
Fish Farming Central Norway 1999-2021 680,674 656,949
775,788 752,063
Specification of goodwill 2020 (NOK 1,000) Acquisition year Acquisition cost Carrying amount 31.12.2020
Fish Farming Northern Norway 2006 95,114 95,114
Fish Farming Central Norway 1999-2014 369,741 346,016
464,855 441,130
In 2021, SalMar increased its production capacity through the aquisi-
tions of Nekton Havbruk AS and Refsnes Laks AS for a consideration
of NOK 1,370.0 million. This led to a net increase in MAB of 5,500
tonnes in Central Norway. See Note 4.5 for further information.
In 2021, the groups operations on Iceland aquired two smolt facili-
ties of which NOK 10.0 million of the consideration was recognised
as licenses.
In 2020, SalMar increased its production capacity through the pur-
chase of volumes that were available at the trac light auction at
fixed price and the public trac light auction held during the year.
The total consideration paid was NOK 1,876.7 million. This has led
to a net increase in MAB of 8,239 tonnes.
In 2020, the Group converted 8 aquaculture development licences to
ordinary production licences for a consideration of NOK 88.4 million.
The development licences were granted in 2016 for use in connection
with the Group’s Ocean Farm 1 installation. Ocean Farm 1 went into
operation in the autumn of 2017, and the first generation of fish
farmed there were fully harvested in January 2019.
Icelandic Salmon holds license of 25,200 tonnes MAB in the Icelandic
Westords. Of the total MAB, 3,000 tonnes must be renewed by the
end of 2022, 10,000 tonnes by the end of 2026 and 12,200 tonnes
by the end of 2029.
Included in the specification of fish farming licenses above there is 2
time-limited demonstration licenses in Central Norway, and 1 time-lim-
ited demonstration license in Northern Norway. In addition SalMar
operates several R&D licences in collaboration with other companies.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 licenses and goodwill. The licenses 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 and Icelandic Salmon.
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 in
the next five years, based on approved budgets and forecasts. Cash flows growth after five years are
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
aect on the value of the groups assets or future cash-flow. For further information see Note 1.7.
Carrying amount of licences and goodwill allocated to cash generating units as at
31 December 2021:
NOK 1,000 Goodwill Licenses Total 31.12.2021
Fish Farming Northern Norway 95,114 2,006,062 2,101,177
Fish Farming Central Norway 656,949 4,164,149 4,821,098
Icelandic Salmon 0 1,317,209 1,317,209
752,063 7,487,420 8,239,484
Carrying amount of licences and goodwill allocated to cash generating units as at
31 December 2020:
NOK 1,000 Goodwill Licenses Total31.12.2020
Fish Farming Northern Norway 95,114 2,006,062 2,101,177
Fish Farming Central Norway 346,016 2,794,149 3,140,165
Icelandic Salmon 0 1,371,972 1,371,972
441,130 6,172,183 6,613,313
At 31 December 2021, 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 Statements and Results Notes to the Financial Statements for 2021
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116
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Financial Statements and Results Notes to the Financial Statements for 2021 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, 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 is calculated at 6.16% for the Group’s Norwegian entities.
For the operations in Iceland, the discount rate after tax is 6.19%.
Terminal growth rate
The growth rate is set at 2%. The same growth rate has been used
for all cash-generating units.
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. 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.
Based on the above assessments, there were no impairment indicators
identified related to the fish farming licences or goodwill as of 31
December 2021. All segments have a material positive dierence
between the calculated recoverable value and book value. However,
based on a specific assessment, goodwill in the Fish Farming Central
Norway segment related to a minor smolt facility was written down
by NOK 5.3 million in 2020. The smolt facility was sold in 2021.
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.
Cash generating units
Discount rate
after tax EBIT/kg (NOK)
Fish Farming Northern Norway 7.60% -13.14
Fish Farming Central Norway 6.88% -12.30
Icelandic Salmon 0.75% -2.00
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 dierent 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 dierence 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.
NOK 1,000
Land &
buildings
Machinery &
equipment
Boats &
barges
Other
operating
assets
Assets under
construction Total
Acquisition cost at 1 January 2021 1,363,991 3,639,375 1,637,602 254,501 1,792,059 8,687,527
Additions through business combinations 44,375 4,894 13,395 7,299 0 69,963
Disposal group companies -14,682 -32,816 -48 -874 0 -48,421
Additions 1,095,941 697,503 63,691 20,877 248,177 2,126,190
Reclassification assets under construction 24,579 49,359 116,456 2,270 -192,665 0
Disposals -3,416 -40,591 -7,907 -7,643 -4,285 -63,841
Reclassification 0 0 0 0 0 0
Currency translation dierences -7,202 -5,706 -16,312 -103 -4,536 -33,859
Acquisition cost at 31 December 2021 2,503,586 4,312,018 1,806,879 276,327 1,838,751 10,737,560
Accumulated depreciation & write-
downs at 1 January 2021
240,193 2,050,246 639,354 203,241 466 3,133,499
Disposal group companies -9,797 -26,757 -48 -667 0 -37,269
Depreciation 82,184 365,601 106,579 15,762 0 570,125
Write-downs 196 2,495 0 322 531 3,544
Disposal depreciation and write-downs -3,174 -39,776 -4,881 -7,312 -500 -55,642
Other reclassification 0 0 0 0 0 0
Currency translation dierences -796 -2,130 -6,692 -95 -230 -9,944
Accumulated depreciation & write-
downs at 31 December 2021
308,805 2,349,679 734,312 211,251 267 3,604,314
Carrying amount at 31 December 2021 2,194,781 1,962,338 1,072,567 65,075 1,838,484 7,133,246
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 2,151 1,174 0 0 3,325
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.3 Property, Plant and Equipment
As of 31 December 2021, the company had capitalised a total of
NOK 1,838.5 million in connection with assets under construction,
the costs relates primarily to the expansion of smolt capacity. The
amount was divided into NOK 1,519.3 million on real estate, NOK 216.4
million on plant and equipment. and NOK 102.8 million on vessels
and other operating assets. As of 31 December 2020, the company
had capitalised a total of NOK 1,791.6 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 1,558 million
related to real estate, NOK 229.6 million to plant and equipment, and
NOK 88.2 million to vessels and other operating assets.
Write-downs in 2020 derive primarily from a NOK 7.6 million impair-
ment in the value of obsolete equipment relating to Icelandic Salmon
and equipment relating to the Ocean Farm 1 installation, worth NOK
12.8 million, which is no longer in use. Some other entities also
performed minor write-downs on equipment no longer in use. For
2021 there has been an minor impairment related to equipment no
longer in use.
NOK 1,000
Land &
buildings
Machinery &
equipment
Boats &
barges
Other
operating
assets
Assets under
construction Total
Acquisition cost at 1 January 2020 1,207,279 3,665,394 1,185,230 260,647 596,236 6,914,786
Additions through business combinations 17,453 0 0 0 0 17,453
Additions 28,112 221,660 40,208 3,477 1,436,042 1,729,500
Reclassification assets under construction 97,359 65,129 82,377 692 -245,557 0
Disposals -846 -1,005,452 -4,028 -468 -91,619 -6,439
Other reclassification 9,786 -17,681 20,816 -12,920 0 0
Translation dierences 4,847 -294,121 312,999 3,072 5,430 32,227
Acquisition cost at 31 December 2020 1,363,991 3,639,375 1,637,602 254,501 1,792,059 8,687,527
Accumulated depreciation & write-
downs at 1 January 2020
164,883 1,671,149 512,835 195,406 592 2,544,865
Depreciation 70,309 373,669 92,314 17,437 0 553,729
Write-downs 106 15,371 7,574 2,735 0 25,786
Reclassification 4,433 -11,662 19,673 -12,444 0 0
Currency translation dierences 461 1,719 6,957 107 -125 9,120
Accumulated depreciation & write-
downs at 31 December 2020
240,193 2,050,246 639,354 203,241 466 3,133,499
Carrying amount at 31 December 2020 1,123,798 1,589,129 998,248 51,260 1,791,593 5,554,028
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 -2,450 188 429 -70 0 -1,904
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 oces 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
NOK 1,000 Land & buildings
Machinery &
equipment Boats & barges Total
Acquisition cost at 1 January 2021 363,096 295,931 844,601 1,503,628
Additions through business combinations 9,064 42,019 10,398 61,482
Adjustments of existing agreements -4,118 -10,939 12,949 -2,107
Additions 12,159 63,381 109,078 184,618
Currency translation dierences 0 0 0 0
Acquisition cost at 31 December 2021 380,201 390,392 977,027 1,747,619
Accumulated depreciation & write-
downs at 1 January 2021
109,916 177,917 367,027 654,860
Depreciation 23,288 35,667 158,487 217,442
Currency translation dierences -358 0 -1,129 -1,487
Accumulated depreciation & write-
downs at 31 December 2021
132,846 213,584 524,385 870,816
Carrying amount at 31 December 2021 247,355 176,808 452,641 876,803
Estimated lifetime 2–30 years 1–5 years 1–9 years
Depreciation method Linear Linear Linear
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.4 Right-of-Use Assets and Lease Liabilities
NOK 1,000 Land & buildings
Machinery &
equipment Boats & barges Total
Acquisition cost at 1 January 2020 338,671 220,314 453,861 1,012,847
Adjustments of existing agreements 543 73,364 446 74,353
Additions 23,818 2,252 389,081 415,151
Currency translation dierences 64 0 1,212 1,276
Acquisition cost at 31 December 2020 363,096 295,931 844,601 1,503,628
Accumulated depreciation & write-
downs at 1 January 2020
91,072 124,738 227,337 443,147
Depreciation 18,840 53,179 139,615 211,635
Currency translation dierences 4 0 75 78
Accumulated depreciation & write-
downs at 31 December 2020
109,916 177,917 367,027 654,860
Carrying amount at 31 December 2020 253,180 118,014 477,574 848,767
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) 2021 2020
Costs relating to short-term leases (less than 12 months duration) 116,098 90,393
Costs relating to the lease of low-value assets 25,330 31,913
Total leasing costs included in other operating expenses 141,428 122,306
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 Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.4 Right-of-Use Assets and Lease Liabilities
Lease liabilities
NOK 1,000 2021 2020
Lease liability 1 January 933,695 629,604
Additions through business combinations 47,395 0
Adjustment of lease liabilities -2,582 74,316
New contracts 186,689 414,037
Interest on lease liability (profit and loss) 57,311 55,217
Instalments on lease liabilities paid (cash flow) -198,437 -184,285
Interest on lease liabilities paid (cash flow) -57,311 -55,217
Currency translation dierences 408 23
Total lease liabilities at 31 December 967,166 933,695
Short-term lease liabilities 216,419 164,567
Long-term lease liabilities 750,747 769,128
Total lease liabilities at 31 December 967,166 933,695
Cash flow relating to lease liabilities
NOK 1,000 2021 2020
Instalments on lease liabilities paid (cash flow) 198,437 184,285
Interest on lease liabilities paid (cash flow) 57,311 55,217
Lease liabilities recognised in profit or loss 141,428 122,306
Total cash flow relating to lease liabilities 397,176 361,808
See Note 4.1 for further details of the leasing liabilities’ maturity profile.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.5 Investments in Associated Companies
NOTE 3.5 Investments in Associated Companies
Accounting policies
Associates are all entities 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
are accounted for using the equity method of accounting, after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted
thereafter to recognise the group’s share of the post-acquisition profits or losses of the investee in
profit or loss, and the group’s share of movements in other comprehensive income of the investee in
other comprehensive income. Dividends received or receivable from associates and joint ventures are
recognised as a reduction in the carrying amount of the investment.
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 associated companies at 31 December 2021:
Company Head oce Sector
Ownership
01.01
Ownership
31.01
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%
Eldisstødin Isthor EHF Iceland Smolt production 25.51% 25.51%
All associates are accounted for using the equity method. Since none of the Group’s associates are listed
on a stock exchange, no observable market values are available.
Companies recognised in accordance with the equity method
NOK 1,000
Norskott
Havbruk AS Others Total
Opening balance at 1 January 2021 682,305 70,260 752,562
- excess value not amortised 0 1,114 1,114
- goodwill 0 3,051 3,051
Addition recognised through business acquisition 0 6,068 6,068
Capital contribution 305,500 2,250 307,750
Income from associated companies 93,577 1,302 94,879
Items recognised in other comprehensive income 13,304 520 13,824
Dividend received 0 -2,177 -2,177
Other changes 0 1,522 1,522
Carrying amount at 31 December 2021 1,094,686 79,745 1,174,428
With eect from 15 December 2021 a capital contribution was carried out in Norskott Havbruk
AS. SalMar’s contribution was NOK 305.5 million. For further details related to the transaction, see
information below.
Companies recognised in accordance with the equity method
NOK 1,000
Norskott
Havbruk AS Others Total
Opening balance at 1 January 2020 636,612 81,210 717,819
– excess value not amortised 0 2,099 2,099
– goodwill
0 3,010 3,010
Income/ loss from associated companies 48,985 -6,777 42,208
Items recognised in other comprehensive income -3,292 -471 -3,762
Dividend received 0 -2,144 -2,144
Other changes 0 -1,559 -1,559
Carrying amount at 31 December 2020 682,305 70,260 752,562
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.5 Investments in Associated Companies
Material associates
Based on an overall assessment, in which size and complexity have
been taken into account, Norskott Havbruk AS is considered to be
a material associate. Further details relating to Norskott Havbruk AS
are presented below.
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 main-
land Scotland and Shetland.
Norskott Havbruk is 50/50 owned by SalMar ASA and Lerøy Seafood
AS. The board of directors has 4 members, with each shareholder
represented by 2 directors. The shareholders alternate in having the
board's chair. Since neither of the company's owners has overall control,
it is considered to be an associate.
The following table shows a summary of financial information relating
to material associates, based on 100% figures:
Norskott Havbruk AS
NOK 1,000 2021 2020
Operating revenues 2,306,955 1,698,652
Operating expenses 2,062,654 1,390,241
Fair value adjustments 15,443 -142,735
Net profit/loss 187,154 97,970
Non-current assets 3,275,822 1,664,679
Current assets 2,127,087 1,283,686
Non-current liabilities 2,414,833 902,069
Current liabilities 798,309 681,291
Equity 2,189,767 1,365,005
The Group's share of equity 1,094,884 682,503
Carrying amount at 31
December 2021
1,094,686 682,305
With eect from 15 December 2021, Scottish Sea Farms Ltd acquired 100% of the shares in Grieg Seafood Hjaltland UK Ltd. Scottish
Sea Farms Ltd are 100% owned by Norskott Havbruk AS, a company owned 50/50 by SalMar ASA and Lerøy Seafood Group ASA. As part
of financing the transaction, a share issue was carried out in Norskott Havbruk AS, and subsequently in Scottish Sea Farms Ltd. The total
capital contribution in Norskott Havbruk AS was NOK 611.0 million, where SalMar's contribution was NOK 305.5 million.
The capital contribution and subsequent acquisitions explain the material increase in carrying amounts in Norskott Havbruk AS from 31
December 2020 till 31 December 2021. Assets and liabilities are recognised to fair value at the time of acquisition. The added value of
non-current debt applies to agreed termination of loans that the acquired company had to the parent company. The termination of the
loan is part of the acquisition transaction. The purchase price allocation is preliminary and changes can be made within a 12 month period
after the acquisition.
The eect on the balance sheet from the acquisition of Grieg Seafood Hjaltland UK Ltd:
NOK 1,000
Carrying amount
in acquired
entity 15th
December 2021
Adjustment
to fair value
Fair value
at time for
acquisition Goodwill
Acquisition
balance
sheet 15th of
December
Non-current assets 791,680 267,240 1,058,920 582,362 1,641,282
Current assets 758,141 -46,639 711,502 0 711,502
Total assets 1,549,821 220,601 1,770,422 582,362 2,352,784
Equity -183,922 1,661,240 1,477,318 582,362 2,059,680
Non-current debt 1,573,010 -1,420,518 152,492 0 152,492
Current debt 160,733 -20,121 140,612 0 140,612
Total Equity and debt 1,549,821 220,601 1,770,422 582,362 2,352,784
NIBD 1,428,050 -1,420,518 7,532 0 7,532
Acquisition analysis: 100.00%
Recognised equity in acquired company -183,922
Net identified added value in the acquired company 1,661,240
Net identified assets and liabilities 1,477,318
Goodwill 582,362
Contribution to seller 2,059,680
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 lower 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
estimated harvesting date that was in eect 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 dierences in fish quality. Price
adjustments are made at the site level.
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 is 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 discount-
ing of the cash flow based on the second last harvesting month in
the harvesting plan. The discount factor is intended to reflect three
main components:
1. Risk of incidents that aect 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 aect 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 theoretical
compensation for licence fees and site rent as an addition to the
discount factor in the model, instead of being a cost-reducing factor
in the calculation.
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.
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
125
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.6 Biological Assets and Other Inventories
Carrying amount of inventory
NOK 1,000 31.12.2021 31.12.2020
Raw materials 223,244 246,943
Finished goods 423,976 434,056
Total other inventory 647,220 680,999
Biological assets 7,280,824 5,988,790
Total value of biological assets and other inventory 7,928,044 6,669,788
Book value of biological assets
NOK 1,000 31.12.2021 31.12.2020
Biological assets held at sea farms at cost 4,350,201 3,924,036
Fair value adjustment of biological assets 2,645,574 1,766,852
Total biological assets held at sea farms at fair value 6,995,775 5,690,888
Roe, fry, smolt and cleaner fish at cost 285,049 297,901
Total biological assets 7,280,824 5,988,790
Raw materials is mainly comprised of 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 SalMar's fish farming operations on land and at sea, 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.
Biological assets held at sea farms 31 December 2021
NOK 1,000
Biomass
(tonnes)
Acquisition
cost
Fair value
adjustment
Carrying
amount
< 1 kg (LW) 11,628 813,412 660,795 1,474,207
1-4 kg 62,822 2,166,105 870,258 3,036,363
> 4 kg (GW) 50,433 1,370,684 1,114,521 2,485,205
Biological assets held at sea farms 124,883 4,350,201 2,645,574 6,995,775
Other biological assets 285,049 0 285,049
Biological assets 4,635,250 2,645,574 7,280,824
Biological assets held at sea farms 31 December 2020
NOK 1,000
Biomass
(tonnes)
Acquisition
cost
Fair value
adjustment
Carrying
amount
< 1 kg (LW) 11,910 674,310 492,009 1,166,319
1-4 kg 66,378 2,126,211 808,804 2,935,015
> 4 kg (GW) 38,990 1,123,516 466,039 1,589,555
Biological assets held at sea farms 117,278 3,924,037 1,766,852 5,690,888
Other biological assets 297,901 0 297,901
Biological assets 4,221,939 1,766,852 5,988,790
Change in biological assets
Tonnes Carrying amount (NOK 1,000)
2021 2020 2021 2020
Biological assets at 1 January 117,278 106,598 5,988,790 5,720,810
Increase from business combination 4,852 0 187,027 0
Increase due to production 215,131 201,330 6,433,541 5,692,874
Decrease due to sales -211,807 -189,020 -6,161,041 -5,202,331
Decrease due to incident-
based mortality
-570 -1,631 -21,059 -59,676
Fair value adjustment at 01.01 -1,766,852 -1,954,023
Fair value adjustment at 31.12 2,645,574 1,766,852
Currency translation dierences -25,063 24,284
Biological assets at 31 December 124,884 117,278 7,280,917 5,988,790
Financial Statements and Results Notes to the Financial Statements for 2021
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126
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.6 Biological Assets and Other Inventories
Valuation of biological assets:
The accounting for live fish is regulated by IAS 41 Agriculture. Biologi-
cal assets must be recognised at fair value in accordance with IFRS 13
within level 3, based on factors not drawn from observable markets.
Roe, fry, smolt and cleaner fish are recognised at historic cost, since
this is considered the best estimate of fair value.
The company’s stocks of live fish held at sea farms are, in accordance
with IAS 41, recognised at fair value
Present value is calculated on the basis of estimated revenues less
production costs remaining until the fish is harvestable at the indi-
vidual 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.
The expected biomass at harvest is calculated on the basis of the
number of fish held at sea farms on the reporting date, adjusted for
expected mortality up until the harvesting date and multiplied by the
fish’s estimated weight at harvest.
Fair value is calculated on the basis of Fish Pool forward prices for the
estimated harvesting date that were in eect on the balance sheet
date. The forward prices are adjusted for an exporter supplement, as
well as harvesting, sales and carriage costs. In addition, an adjustment
is made to take account of expected dierences in fish quality.
A discount rate of 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 2020.
For the Group’s operations in Iceland, a discount rate of 4% per month
was used in 2021, while the corresponding rate in 2020 was 3% per
month. The discount rate reflects the biomass’s capital cost, risk and
synthetic licence fees and site rental charges. The reduction in the
discount rate in 2021 for the Norwegian operation is based on an
expectation of higher future cost and thereby lower margins.
The calculation is based on following forward prices:
Expected
harvesting
period:
Forward
price
31.12.2021
Expected
harvesting
period:
Forward
price
31.12.2020
Q1-2022 68.66 Q1-2021 50.33
Q2-2022 68.23 Q2-2021 56.77
Q3-2022 56.43 Q3-2021 53.67
Q4-2022 62.27 Q4-2021 55.83
1st half 2023 65.25 1st half 2022 61.85
2nd half 2023 55.75 2nd half 2022 54.15
Sensitivity:
The change in the estimated fair value of biologial assets has been cal-
culated by changing individual parameters in the calculation. The eect
on the carrying amount of biological assets is summarised below:
2021 (NOK 1,000) Increase
Eect on estimated fair
value at 31.12.2021 Decrease
Eect on estimated fair
value at 31.12.2021
Change in forward price + NOK 5.00 per kg 754,610 NOK 5.00 per kg -754,610
Change in discount factor 1% -431,796 -1% 499,865
Change in harvesting date 1 month earlier 66,879 1 month later -399,744
Change in number of fish held at sea farms 1% 91,771 -1% -91,771
2020 (NOK 1,000) Increase
Eect on estimated fair
value at 31.12.2020 Decrease
Eect on estimated fair
value at 31.12.2020
Change in forward price + NOK 5.00 per kg 736,883 NOK 5.00 per kg -736,883
Change in discount factor 1% -385,580 -1% 428,624
Change in harvesting date 1 month earlier 62,706 1 month later -299,608
Change in number of fish held at sea farms 1% 76,256 -1% -76,256
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 currencies are trans-
lated using 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 for calculating loss allowance on trade receivables. In principle,
the Group credit insures its trade receivables and makes an allowance for expected bad debts on
that portion which is not insured. The Group measures its allowance for bad debts on the basis of
for credit losses expected over the remaining life of the exposure, and not based on a 12-month
expected loss.
NOK 1,000 2021 2020
Trade receivables 943,880 598,699
Allowance for credit losses -8,946 -9,710
Total trade receivables at 31 December 934,934 588,989
Other current receivables 479,617 435,947
Other non-current receivables 109,898 90,747
Total receivables at 31 December 1,524,449 1,115,683
Prepaid expenses included in other current receivables 35,625 66,132
Derivatives included in other current receivables 62,426 210,326
VAT refunds included in other current receivables 190,637 84,818
Other non-current receivables includes a loan to Gyda EHF with a carrying amount of NOK 31.8 million
at 31 December 2021. The loan is a seller’s credit arise from sale of a tranche of shares in Icelandic
Salmon AS in 2019 with the total amount of NOK 35.7 million. The loan, including interest accrued, will
be repaid in full no later than 31 December 2025. Earlier settlement may take place if specific conditions
set out in the credit agreement are met. Gyda EHF is controlled by Kjartan Olafsson, who is the Chair
of the Board of Icelandic Salmon AS.
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 2021 2020
Provisions for bad debt 1 Jan 9,710 21,094
Provisions for bad debts 31 Dec 8,946 9,710
Change in provisions for bad debts during the period -763 -11,384
Actual bad debts 106 14,625
Change in provisions for bad debts -763 -11,384
Bad debts charged to expenses during the period -658 3,241
Trade receivables had the following maturity profile
NOK 1,000 Not due <30 d 30-45d 45-90d >90d Total
31.12.2021 738,812 131,505 31,921 12,467 29,175 943,880
31.12.2020 501,489 64,034 318 1,657 31,201 598,699
Transferred receivables
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 2021, a total of NOK 595.3 million in outstanding receiva-
bles has been transferred and derecognised (31 December 2020, a total of NOK 391.9 million). The
change in trade receivables deriving from this derecognition is included under operating activities in
the statement of cash flow.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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 related to contracts which does not 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 inquisition. Any subsequent
changes in value are classified on the line for fair value adjustments
in profit and loss.
This category includes the Group’s unlisted equity instrument. Such
instruments are recognised at fair value on the date the contract is
entered into and are also 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 in to a cross-currency interest swap and a inter-
est rate swap to hedge risk exposed to interest-bearing debt and the
operations on Iceland. Changes in fair value of those 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
b. 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.
Financial Statements and Results Notes to the Financial Statements for 2021
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129
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.8 Financial Assets and Financial Liabilities
Provisions for losses on financial assets
The Group has made a provision for expected losses on all debt instruments
that are not classified at fair value through profit and loss. The Group recognises
expected credit losses on the basis of a specific assessment of each individual
customer. The Group recognises its loss provision on the basis of for credit
losses expected over the remaining life of the exposure, and not based on
a 12-month expected loss.
Financial liabilities
Financial liabilities are, after initial recognition, classified as loans and liabilities,
or derivatives designated as hedging instruments in an eective hedging
arrangement. Derivatives are initially recognised at fair value. Loans and liabil-
ities are recognised at fair value adjusted for directly attributable transaction
costs. Derivatives are financial liabilities when the eective 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
Financial instruments at December 2021
NOK 1,000
At amortised
cost
At fair value
through profit
or loss
At fair value
in OCI Total
Assets
Derivatives
Forward currency contracts 0 -13,702 51,093 37,390
Interest and currency rate swaps 0 0 25,036 25,036
Equity instruments
Unlisted equity instruments 0 7,512 0 7,512
Debt instruments
Other non-current receivables 109,898 0 0 109,898
Trade receivables 934,934 0 0 934,934
Other current receivables 358,419 23,146 0 381,566
Cash and cash equivalents 901,644 0 0 901,644
Total financial assets 2,304,894 16,956 76,129 2,397,979
Liabilities
Interest-bearing debt
Debts to credit institutions 2,018,733 0 0 2,018,733
Green bond 3,459,102 0 0 3,459,102
Derivatives
Forward currency contracts 0 3,285 -2,709 577
Financial contracts Fish Pool 0 23,398 0 23,398
Other financial liabilities
Trade payables 2,317,308 0 0 2,317,308
Total financial liabilities 7,795,142 26,683 -2,709 7,819,117
Financial instruments at December 2020
NOK 1,000
At amortised
cost
At fair value
through
profit or loss
At fair value
in OCI Total
Assets
Derivatives
Forward currency contracts 0 30,957 173,936 204,893
Financial contracts Fish Pool 0 6,607 0 6,607
Equity instruments
Other shares and securities 0 472 0 472
Debt instruments
Other non-current receivables 90,747 0 0 90,747
Trade receivables 588,989 0 0 588,989
Other current receivables 134,537 23,778 0 158,315
Cash and cash equivalents 223,447 0 0 223,447
Total financial assets 1,037,720 61,814 173,936 1,273,470
Liabilities
Interest-bearing debt
Debts to credit institutions 5,116,062 0 0 5,116,062
Derivatives
Forward currency contracts 0 0 0 0
Other financial liabilities
Trade payables 2,056,323 0 0 2,056,323
Total financial liabilities 7,172,385 0 0 7,172,385
Financial instruments by category
Financial Statements and Results Notes to the Financial Statements for 2021
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130
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.8 Financial Assets and Financial Liabilities
Financial instruments–assessment of fair value
The table below shows financial instruments at fair value according to valuation method. The various
levels are defined as follows:
• 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 Group’s assets and liabilities measured at fair value. See Note 3.9 for
details of derivatives measured at fair value under Level 2. See also Note 3.6 for details of biological
assets measured at fair value under Level 3.
31 December 2021 (NOK 1,000) Level 1 Level 2 Level 3 Total
Assets
Derivatives
Forward currency contracts 0 37,390 0 37,390
Interest and currency derivatives 0 25,036 0 25,036
Equity instruments
Other shares and securities 0 0 7,512 7,512
Debt instruments
Other receivables 0 0 23,146 23,146
Total assets 0 62,426 30,658 93,085
Liabilities
Derivatives
Forward currency contracts 0 577 0 577
Financial contracts Fish Pool 0 23,398 0 23,398
Total liabilities 0 23,974 0 23,974
31 December 2020 (NOK 1,000) Level 1 Level 2 Level 3 Total
Assets
Derivatives
Forward currency contracts 0 204,893 0 204,893
Financial contracts Fish Pool 0 6,607 0 6,607
Equity instruments
Other shares and securities 0 0 472 472
Debt instruments
Other receivables 0 0 23,778 23,778
Total assets 0 211,500 24,250 235,750
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amor-
tised cost using the eective interest method. Gains and losses are recognised in profit or loss when
the liabilities are derecognised as well as through the eective interest method amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the eective interest method. The eective interest method amorti-
sation is included as finance costs in the statement of profit or loss. See Note 3.11 for further details.
Financial Statements and Results Notes to the Financial Statements for 2021
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131
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.9 Hedging Activities and Derivatives
NOTE 3.9 Hedging Activities and Derivatives
Accounting policies
Forward currency contracts
The Group enters into forward currency contracts to reduce the for-
eign exchange risk relating to future sales revenues deriving from
customer contracts denominated in foreign currencies for the physical
delivery of salmon. The Group’s forward currency contracts fall due
for payment between January 2022 and December 2023, and hedge
trade receivables and cash flows from all sales contracts entered into
in foreign currencies during this period.
Forward currency contracts are recognised at fair value in the balance
sheet. The fair value of forward currency contracts 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 incorporate 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. Recognition of gains and losses
relating to the forward currency contracts depends on whether they
qualify for hedge accounting.
For forward currency contracts that qualify for hedge accounting,
the fair value of the eective portion is recognised in other compre-
hensive income. When time dierences 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 eect
on the reporting date and the revaluation eect 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 aect profit and loss. Ineciency in hedging factors
arises when the hedged volume deviates from the delivered volume.
The ineciency is recognised as a financial item in profit and loss.
The Group complies with the criteria set out in IFRS 9 when assessing
whether a forward currency 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 eciency, 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 eciency of the hedge must be measurable.
The eciency of hedges is monitored continuously.
For forward currency contracts which do not qualify for hedge
accounting, any change in the fair value is 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 dierence between the spot rate and
the forward rate, and reflects the dierence 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 a interest swap and 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 business 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 incorporate 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 amortized as interest
costs over the term of the agreement. The eectiveness of hedging
is measured at the end of each period, any ineective portion will be
recognised as a financial item in the profit and loss.
Financial contracts 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 Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.9 Hedging Activities and Derivatives
Derivatives
2021 2020
Recognised at fair value
at 31 Dec (1,000 NOK)
Other
receivables
Other current
liabilities
Other
receivables
Other current
liabilities
Forward currency contracts 37,390 577 204,893 0
Interest and currency swaps 25,036 0 0 0
Financial contracts Fish Pool 0 23,398 6,607 0
Total 62,426 23,974 211,500 0
Forward currency contracts at 31 December 2021
2022 2023
Forward currency contracts
with changes in value through
profit or loss (NOK 1,000):
Currency
amount
(1,000)
Average
volume-
weighted
hedging
rate
Currency
amount
(1,000)
Average
volume-
weighted
hedging
rate
Carrying
amount
Forward Sale CAD 4,600 6.98 0 0 -147
Forward Sale EUR 13,780 10.13 0 0 1,226
Forward Sale JPY 514,393 0.080 0 0 1,879
Forward Sale SEK 2,900 0.97 0 0 -4
Forward Sale USD 45,031 8.81 0 0 -19,941
Total -16,988
Forward currency contracts
with changes in value through
OCI (NOK 1,000):
Forward Sale CAD 38,400 6.93 45,000 6.97 -21
Forward Sale EUR 95,046 10.24 2,548 10.41 14,571
Forward Sale JPY 5,905,882 0.080 318,017 0.080 15,905
Forward Sale USD 360,880 8.92 7,349 8.98 23,346
Total 53,801
Carrying amount at 31 December 2021 36,813
Forward currency contracts at 31 December 2020
2021 2022
Forward currency contracts
with changes in value through
profit or loss (NOK 1,000):
Currency
amount
(1,000)
Average
volume-
weighted
hedging
rate
Currency
amount
(1,000)
Average
volume-
weighted
hedging
rate
Carrying
amount
Forward Sale CAD 25,600 6.97 0 0 6,683
Forward Sale EUR 10,235 10.63 0 0 2,627
Forward Sale GBP 95 11.66 0 0 0
Forward Sale JPY 743,308 0,084 0 0 1,646
Forward Sale SEK 2,810 1.05 0 0 11
Forward Sale USD 90,838 9.13 2,250 9.14 19,991
Total 30,957
Forward currency contracts
with changes in value through
OCI (NOK 1,000):
Forward Sale EUR 45,749 11.26 0 0 32,888
Forward Sale JPY 1,022,872 0,088 87,502 0,086 5,766
Forward Sale USD 77,423 9.60 32,460 9.05 135,282
Total 173,936
Carrying amount at 31 December 2020 204,893
Specification of cash flow
hedging through OCI: As at 1 January
As at 31
December
Change in value
of drawdowns on
currency account
Change in fair
value through OCI
2021 173,454 53,801 -282 -119,935
2020 0 173,454 519 173,973
In 2020, hedge accounting was established for a material portion of the Group’s sales contracts with
customers. Changes in the value of the derivatives up until the date of establishment were recognised
through profit and loss. The hedging rate for existing contracts was re-established at the daily rate in
eect on the date of transition. Changes in value after the implementation of hedge accounting were
recognised through OCI. The fair value of the derivatives on the date hedge accounting was established
was NOK 76.1 million
For forward currency contracts which qualify for hedge accounting, an ineciency of NOK -0.8 has
been recognised in 2021 (NOK -1.3 million in 2020). The eect is classified as a financial expense in
profit and loss.
Financial Statements and Results Notes to the Financial Statements for 2021
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133
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.9 Hedging Activities and Derivatives
Interest and currency derivatives regarding debt
Interest and currency derivatives with changes in value through OCI
NOK 1,000
Nominal value
hedge instruments
(1000 NOK
Carrying value
hedge object
(1,000 NOK)
Nominal
value hedge
instruments
(1,000 EUR)
Carrying
value of net
investment
(1,000 EUR)
Hedging
eciency
Carrying
amount
Cash flow hedge reserve
1,192,667
-1,192,667
100% 19,317
Net investment reserve -98,335 100,177 100% 17,776
Cost of hedging reserve -12,747
Total 24,346
Changes through
profit and loss
Accrued value of
net interest
691
Carrying amount at 31 December 2021 25,036
Specification of hedging eects in OCI in 2021:
NOK 1,000
As of
01.01
As of
31.12
Changes
over OCI
Changes in Cash flow hedge reserve 0 19,317 19,317
Changes in Net investment reserve 0 17,776 17,776
Changes in Cost of hedging reserve 0 -12,747 -12,747
Total 0 24,346 24,346
Specification of hedging eects through profit or loss in 2021
NOK 1,000
As of
01.01
As of
31.12
Profit
or loss
Changes in net accrued interest 0 691 691
Amortization of swap cost reclassified from
hedging reserve to interest cost
0 -1,279 -814
Total -123
In 2021, an interest rate currency swap agreement was entered into in 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 eective 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 eective
as long as the nominal value of the net investment is greater than the nominal value of the hedging
instrument. There has been no ineciency 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.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.9 Hedging Activities and Derivatives
Financial contracts Fish Pool
2022
(NOK 1,000) Type
Volume
(1,000)
Average
volume-
weighted
price per kg
Market
value
Fish Pool contracts Sale 10,150 63.4 -23,398
Carrying amount at 31 December 2021 -23,398
2021 2022
(NOK 1,000) Type
Volume
(1,000)
Average
volume-
weighted
price per kg
Volume
(1,000)
Average
volume-
weighted
price
per kg
Market
value
Fish Pool contracts Purchase 7,950 59.8 0 0 -46,958
Fish Pool contracts Sale 10,291 58.1 240 58.4 39,190
Carrying amount at 31 December 2020 -7,768
In 2021, there was a net realised loss on Fish Pool contracts of NOK 13.3 million (NOK 40.2 million in
2020). The loss is included in operating profit/loss. Unrealised changes in the value of Fish Pool con-
tracts in 2021 amounted to a net loss of NOK 15.6 million (net loss of NOK 8.6 million in 2020), and is
classified as a fair value adjustment in profit and loss.
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.10 Cash & Cash Equivalents
NOTE 3.10 Cash & Cash Equivalents
(NOK 1,000) 31.12.2021 31.12.2020
Cash & cash equivalents, unrestricted funds 780,846 79,909
Cash & cash equivalents, restricted funds 120,798 143,538
Total cash and cash equivalents at 31 December 901,644 223,447
A total of NOK 113.8 million (2020: NOK 101.8 million) in restricted tax withholdings is included in the item
cash and cash equivalents. This item also includes restricted funds relating to security pledges with respect
to Nasdaq, which derive from the Group’s trading in salmon derivatives on Fish Pool. As at 31 December
2021, such security pledges amounted to NOK 6.9 million (2020: NOK 41.7 million).
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.11 Interest-Bearing Debts
NOTE 3.11 Interest-Bearing Debts
Non-current interest-bearing debt (NOK 1,000) 2021 2020
Debts to credit institutions 1,609,475 3,999,980
Green bond 3,500,000 0
Amortized cost -40,898 0
Total 5,068,577 3,999,980
Next year's instalment on non-current interest bearing debts -162,017 -322,353
Total 4,906,560 3,677,627
Lease liabilities 967,166 933,695
Next year's instalment on lease liabilities -216,419 -164,567
Total 750,747 769,128
Total carrying amount at 31 December 5,657,307 4,446,755
Current interest bearing debt (NOK 1,000) 2021 2020
Debts to credit institutions 409,257 1,116,082
Next year's instalment on debts to credit institutions 162,017 322,353
Total 571,274 1,438,435
Next year's instalment on lease liabilities 216,419 164,567
Total carrying amount at 31 December 787,693 1,603,002
Total interest-bearing debt 6,445,000 6,049,757
Cash and cash equivalents 901,644 223,447
Lease liabilities 967,166 933,695
Net interest-bearing debt 4,576,190 4,892,615
The fair value of borrowings are not materially dierent 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 the Group has entered into a cross-currency interest swap and a interest
swap to reduce the risk related to floating interest rate. See note 3.9 “Hedging activities and derivatives”
and note 4.1 “Financial risk management” for further details regarding the swaps.
As at 31 December 2021 per currency
NOK 1,000 NOK EUR JPY USD GBP Other Total
Non-current debts 4,663,541 405,036 0 0 0 0 5,068,577
Lease liabilities 942,033 9,895 0 0 0 15,239 967,166
Current debts to
credit institutions
414,033 -77,483 41,352 30,408 945 0 409,257
Total interest-
bearing debts
6,019,607 337,448 41,352 30,408 945 15,239 6,445,000
Cash and cash
equivalents
776,542 4,402 20,825 31,932 3,118 64,823 901,644
Lease liabilities 942,033 9,895 0 0 0 15,239 967,166
Net interest-
bearing debts
4,301,032 323,152 20,527 -1,524 -2,173 -64,823
4,576,190
As at 31 December 2020 per currency
NOK 1,000 NOK EUR JPY USD GBP Other Total
Non-current debts 3,999,980 0 0 0 0 0 3,999,980
Lease liabilities 913,786 19,909 0 0 0 0 933,695
Current debts to
credit institutions
736,745 458,418 -20,283 -26,661 -31,952 -186 1,116,082
Total interest-
bearing debts
5,650,512 478,327 -20,283 -26,661 -31,952 -186 6,049,757
Cash and cash
equivalents
182,568 0 11,336 8,732 60 20,751 223,447
Lease liabilities 913,773 12,472 0 0 0 7,451 933,695
Net interest-
bearing debts
4,554,171 465,855 -31,619 -35,393 -32,012
-28,388
4,892,615
Financial Statements and Results Notes to the Financial Statements for 2021
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137
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.11 Interest-Bearing Debts
Financing activities - changes in liability at 31 Dec 2021: Non-cash generating eects
31.12.2020
Cash flow from
financing activities Change subsidiaries Currency eects
Change in next
year's instalments
on long-term debts Other eects 31.12.2021
Non-current debts 3,677,627 621,918 451,087 -11,555 160,336 7,146 4,906,560
Current debts to credit institutions 1,438,435 -703,959 -1,873 -993 -160,336 0 571,274
Total debts to credit institutions 5,116,062 -82,040 449,214 -12,549 0 7,146 5,477,834
Non-current and current lease liabilities 933,695 -198,437 47,515 -330 0 184,723 967,166
Total interest-bearing debts 6,049,757 -280,478 496,729 -12,878 0 191,869 6,445,000
For details regarding change in subsidiaries see Note 4.5.
Financing activities - changes in liability at 31 Dec 2020: Non-cash generating eects
31.12.2019
Cash flow from
financing activities Change subsidiaries Currency eects
Change in next
year's instalments
on long-term debts Other eects 31.12.2020
Long-term debts to credit institutions 2,751,570 1,063,835 0 34,584 -172,361 0 3,677,627
Short-term debts to credit institutions 381,539 837,761 0 46,774 172,361 0 1,438,435
Total debts to credit institutions 3,133,108 1,901,595 0 81,357 0 0 5,116,062
Long and short-term lease liabilities 629,604 -184,285 0 23 0 488,353 933,695
Total interest-bearing debts 3,762,714 1,717,310 0 81,379 0 488,353 6,049,757
Interest-bearing debt in more detail
In 2019, SalMar renewed its installment loan agreement. The loan comprises two tranches of NOK 500
million each: a commercial tranche, where the banks assume the credit risk; and an export credit agency
(ECA) tranche, where the banks lend the money but are fully guaranteed by Eksportfinansiering Norge.
Both tranches have an 8.5-year instalment profile and a term of 3+1+1 years.
With eect from 24 February 2021, SalMar ASA has entered into a new sustainability linked credit
facility in the amount of NOK 4,000 million, and at the same time increased its overdraft cap from NOK
500 million to NOK 1,000 million. The new sustainability linked credit facility is a five-year agreement,
with four sustainability KPIs included in the assessment of margin.
SalMar has an annually renewable multicurrency cash pooling arrangement limited to NOK 1,000 million.
As of 31 December 2021, the Group had a net drawdown of NOK 356.2 million on this arrangement.
Deposits and drawdowns in various currencies relating to the group account scheme are recognised net
in the Group’s financial statements. These facilities cover the Group’s Norwegian companies with the
exception of the subgroup SalMar Aker Ocean AS and the subsidiaries Refsnes Laks AS and Vikenco AS.
With eect from 22 April 2021, SalMar ASA has 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 a interest rate at 3-months NIBOR + 1.35% per annum, falling due
Financial Statements and Results Notes to the Financial Statements for 2021
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138
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.11 Interest-Bearing Debts
quarterly. The loan is capitalised at amortised cost using the eective
interest rate method. The loan’s net carrying amount at 31 December
2021 is NOK 3,459 million. The bond loan is listed on the Oslo Stock
Exchange under the ticker SALM01 ESG.
Vikenco AS has an overdraft facility capped at NOK 50 million. In 2021
the construction loan was converted to two instalment loans of NOK
200 million and NOK 80 million.
In 2021 Arnarlax Ehf, the groups subsidiary in Iceland, signed a new
financing agreement lasting until June 2024 with the amount of EUR
56 million. The agreement and comprises an instalment loan with the
amount of EUR 22.5 million, a revolving credit facility of EUR 28.5
million and an overdraft of EUR 5.0 million.
Refsnes Laks AS, group company from 2021, has a overdraft facility
limited to NOK 60, renewed annually.
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
4.0. The Group was in compliance with these covenants as at 31
December 2021.
The green bond has a financial covenant requiring an equity ratio of
30% in the agreement period.
Correspondingly, the Group’s Icelandic segment has a solvency require-
ment, which stipulates that the company’s recognised equity ratio shall
exceed 35%. There is also a profitability requirement which stipulates
that its interest coverage rate shall not fall below 3.5 and in addition,
the company’s NIBD/12-month rolling EBITDA shall not exceed 6.5.
Supply Chain Financing
The Group has entered into a supply chain financing agreement (SCF),
meaning that some vendors will indirectly oer 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. At 31 December 2021 the carrying amount of the
financed amount was NOK 1,196.6 million. (31 December 2020:
NOK 1,074.1 million).
Transferred receivables
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 Statements and Results Notes to the Financial Statements for 2021
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139
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 3.12 Mortgage and Guarantees
NOTE 3.12 Mortgage and Guarantees
Liabilities secured by mortgage (NOK 1,000): 2021 2020
Non-current interest bearing debt 1,447,458 3,677,627
Current interest bearing debt 571,274 1,438,435
Lease liabilities 967,166 933,695
Total debt secured by mortgages and pledges at 31 December 2021 1,538,440 2,372,130
Assets pledged as security for debt (NOK 1,000): 2021 2020
Licences 7,487,421 6,172,183
Property, plant and equipment and right-to-use assets 8,010,049 6,402,795
Biological assets and other inventory 7,928,044 6,669,789
Trade receivables 934,934 588,989
Total assets pledged as security at 31 December 2021 24,360,448 19,833,756
The Group had not issued guarantees with respect to third parties as
at 31 December 2021.
NOTE 3.13 Current Liabilities
Accounting policies
Onerous contracts
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 recog-
nised as liabilities in the financial statements. The amount recognised
as a liability is the dierence between the market price at the balance
sheet date plus costs to sell and the contract price. Changes in provi-
sions are recognised in a separate line in the statement of profit and
loss and are included in the operational profit.
Provisions
A provision is recognised when, and only when, the company has
a constructive obligation (legal or self-imposed) deriving from an
event which has occurred, and it is probable (more likely than not)
that a financial settlement will take place as a result of that liability,
and the amount in question may be reliably quantified Provisions are
reviewed on each reporting date, and the level reflects a best estimate
of the liability concerned.
Other current liabilities
(NOK 1,000): 31.12.2021 31.12.2020
Salaries and vacation pay due 117,793 112,579
Derivatives 23,974 0
Accruals for clean-up cost 136,588 119,336
Other accrued expenses 292,489 174,445
Provisions for onerous contracts 203,040 22,070
Total carrying amount at
31 December 2021
773,884 406,360
Provisions related to onerous contracts is increased by NOK 181.0
million in 2021 and are recognised in operating profit (2020: increased
provision by NOK 16.0 million).
Financial Statements and Results Notes to the Financial Statements for 2021
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140
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Financial Statements and Results Notes to the Financial Statements for 2021 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
it has sucient flexibility both operationally and with respect to the
financing of investments in SalMar's operations. 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 busi-
ness operations.
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 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. The risk is partly reduced by the
opposite eect on cash equivalents which earn floating interest. In
2021 the Group has entered into a to cross-currency interest swap
and a interest swap to manage the interest rate. At 31 December
2021, after taking into account the eect of interest rate swaps,
approximately 24% of the Group’s borrowings are at a fixed rate of
interest (2020: 0%). For more details regarding the swaps see note
3.9 "Hedging activities and derivatives", and 4.10 "Events occurring
after the reporting period".
Interest rate sensitivity
Given the financial instruments in eect on 31 December 2021,
after the impact of hedge accounting, a 0.5 per cent rise in the
rate of interest would reduce the Group's profit by NOK 26.3
million (2020: NOK 30.2 million), all other variables remaining
constant. 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 eect on 31 December 2021,
a weakening of 10 per cent of the NOK would increase the Group's profit
before tax by NOK 513.4 million (2020: NOK 284.8 million).
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 31.12.2021 31.12.2020
EUR 8,241 16,644
JPY -15,552 -7,712
GBP -1,772 -2,453
CAD -4,021 -1,965
USD -40,944 -33,880
The Group’s exposure to foreign currency changes for all other currencies
is not material.
Financial Statements and Results Notes to the Financial Statements for 2021
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141
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.1 Financial Risk Management
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 su-
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 sucient 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 2021
Maturity Total 2022 2023 2024 2025 2026 After 2026
Long-term debt 5,068,577 153,971 153,971 849,488 15,504 209,646 3,685,996
Interest on long-term debt 516,855 112,487 108,363 99,442 92,086 89,544 14,934
Leasing liabilities 967,166 195,743 146,613 110,524 101,990 79,038 333,258
Interest on leasing liabilities 379,964 54,031 49,673 45,912 43,405 39,972 146,971
Short-term credit facilities 409,257 409,257 0 0 0 0 0
Interest on short-term debt 3,376 3,376 0 0 0 0 0
Trade payables 2,317,308 2,317,308 0 0 0 0 0
Total liabilities 9,662,503 3,246,174 458,619 1,105,365 252,986 418,199 4,181,160
Maturity structure for financial liabilities at 31 December 2020
Maturity Total 2021 2022 2023 2024 2025 After 2025
Long-term debt 3,999,980 522,208 135,197 135,197 3,128,138 17,550 61,691
Interest on long-term debt 182,320 60,984 49,085 47,139 23,653 1,014 444
Leasing liabilities 933,695 167,160 133,318 106,289 83,424 81,123 362,380
Interest on leasing liabilities 422,853 53,055 50,195 47,253 44,235 42,359 185,755
Short-term credit facilities 1,116,082 1,116,082 0 0 0 0 0
Interest on short-term debt 5,525 5,525 0 0 0 0 0
Trade payables 2,056,323 2,056,323 0 0 0 0 0
Total liabilities 8,716,778 3,981,337 367,796 335,878 3,279,451 142,046 610,271
Financial Statements and Results Notes to the Financial Statements for 2021
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Financial Statements and Results Notes to the Financial Statements for 2021 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.
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 2021.
The company monitors its capital management on the basis of the
covenants stipulated. These are based on equity ratio and the ratio of
net interest-bearing debt to EBITDA. See Note 3.11 for further details.
As at 31 December 2021, the Group had an equity ratio of 55.1
per cent (31 December 2020: 49.9 per cent). At the close of 2021,
the Group’s net interest-bearing debt stood at NOK 4,576.2 million
(2020: NOK 4,892.6 million) See Note 3.11 for further details of the
Group’s net interest-bearing debt.
Financial Statements and Results Notes to the Financial Statements for 2021
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143
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.2 Share Capital and Shareholders
NOTE 4.2 Share Capital and Shareholders
At 31 December 2021, the parent company’s share capital comprised:
NOK 1,000 No. Face value Book value
Ordinary shares 117,799,999 0.25 29,450,000
There are no current limitations on voting rights or trade limitations
related to the SalMar share.
On 8 June 2021, SalMar ASA’ share capital was increased by 4,500,000
shares (nominal value of NOK 0.25 per share), from 113,299,999
shares to 117,799,999 shares. The share capital was thus increased
by NOK 1,125 million, from NOK 28,325 million to NOK 29,450. The
total amount of the capital contribution was NOK 2,709.0 million.
As at 31 December 2021, SalMar ASA owned 102,361 treasury shares.
Shareholders
Overview of the largest shareholders 31.12.2021: Number of shares Shareholding Voting share
KVERVA INDUSTRIER AS 59,934,476 50.88% 50.92%
FOLKETRYGDFONDET 6,555,356 5.56% 5.57%
CACEIS Bank 2,236,647 1.90% 1.90%
State Street Bank and Trust Comp 1,598,036 1.36% 1.36%
BNP Paribas Securities Services 1,569,002 1.33% 1.33%
State Street Bank and Trust Comp 1,518,495 1.29% 1.29%
LIN AS 1,299,685 1.10% 1.10%
JPMorgan Chase Bank, N.A., London 1,170,203 0.99% 0.99%
CLEARSTREAM BANKING S.A. 1,066,044 0.90% 0.91%
The Northern Trust Comp, London Br 1,022,490 0.87% 0.87%
JPMorgan Chase Bank, N.A., London 992,543 0.84% 0.84%
SIX SIS AG 927,477 0.79% 0.79%
CACEIS Bank 774,110 0.66% 0.66%
Brown Brothers Harriman (Lux.) SCA 723,542 0.61% 0.61%
State Street Bank and Trust Comp 718,345 0.61% 0.61%
VERDIPAPIRFONDET ALFRED BERG GAMBA 688,759 0.58% 0.59%
VERDIPAPIRFONDET KLP AKSJENORGE IN 617,440 0.52% 0.52%
The Bank of New York Mellon 595,832 0.51% 0.51%
VPF DNB AM NORSKE AKSJER 573,595 0.49% 0.49%
Pictet & Cie (Europe) S.A. 527,788 0.45% 0.45%
Total 20 largest shareholders 85,109,865 72.25% 72.31%
Total other shareholders 32,690,134 27.75% 27.69%
Total number of shares 31.12.2021 117,799,999 100.00% 100.00%
Financial Statements and Results Notes to the Financial Statements for 2021
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144
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.2 Share Capital and Shareholders
Shares owned by Board Members and Senior Executives:
Name Number of shares Shareholding
Leif Inge Nordhammer Chair of the Board *
Magnus Dybvad Board Member **
Tone Ingebrigtsen Board Member - Employees representative 604
0.00%
Gustav Witzøe CEO ***
Ulrik Steinvik Director Business Improvement ****
Trine Sæther Romuld CFO & COO 6,323 0.01%
Frode Arntsen COO Industry & Sales 4,706 0.00%
Roger Bekken COO Farming 16,766 0.01%
* Owns, directly and indirectly, 1.61 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 1.10 per cent of the shares in SalMar ASA. In addition, LIN AS owns 0.51 per cent of the shares in the company though a 1 per
cent shareholding in Kverva AS, which, through Kverva Industrier AS, owns 50.88 per cent of the shares in SalMar ASA and has a corresponding
50.92 per cent voting share.
** Owns indirectly 0.02 per cent of the shares in SalMar ASA. Magnus Dybvad owns 100.0 per cent of the shares in Acertas AS, which owns 100
per cent of the shares in Acertar AS. Acertar AS owns 0.04 per cent of the shares in Kverva AS, which, through Kverva Industrier AS, owns 50.88
per cent of the shares in SalMar ASA and has a corresponding 50.92 per cent voting share.
*** Owns shares indirectly through Kvarv AS, the parent company in the Kverva Group. Kvarv AS owns 93.02 per cent of the shares in Kverva AS,
which owns 100 per cent of the shares in Kverva Industrier AS. Kverva Industrier AS owns 50.88 per cent of the shares in SalMar ASA and a voting
share of 50.92 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 0.12 per cent of the shares in SalMar ASA. Ulrik Steinvik owns 18,266 shares directly and indirectly through
personal related parties, he also owns 100 per cent of the shares in Nordpilan AS. Nordpilan AS owns 0.2 per cent of the shares in Kverva AS,
which owns 100 per cent of the shares in Kverva Industrier AS. Kverva Industrier AS owns 50.88 per cent of the shares in SalMar ASA and has
a corresponding 50.92 per cent voting share.
Financial Statements and Results Notes to the Financial Statements for 2021
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145
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Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.2 Share Capital and Shareholders
Board authorisations
Authorisations granted to the Board are normally time limited, and
are valid only up until the next AGM in 2022 and no later than
30 June 2022.
The Board of Directors has been granted the following authorisations
which may impact the share capital at 31 December 2021:
To increase the company’s share capital limited to NOK 2,832,000,
through the issue of up to 11,328,000 shares to finance invest-
ments and the acquisition of businesses through cash issues and
contributions in kind.
To acquire up to 11,095,929 treasury shares with an aggregate par
value of up to an aggregate of NOK 2,773,982.25 at a price per share
of no less than NOK 1 and no more than NOK 900.
To issue convertible loans for up to NOK 2,000,000,000 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 2,832,000,
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 10 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 for subsequent cancellation,
cf. the Public Limited Liability Companies Act Section 9 4, for up to
5,154,315 shares with an aggregate par value of NOK 1,288,578.75.
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 share-
holders and to facilitate an adequate capital structure of SalMar. The
amount payable per share could be in the range between NOK 1 and
NOK 900 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.
Authorisation granted after the reporting period:
In an extraordinary meeting on 14 March 2022, the general meeting
granted the Board an additional authorisation to increase the Compa-
ny’s share capital up to NOK 4,501,968.25, through the issue of up to
18,007,873 shares in connection with the completion of the voluntary
oer to acquire all outstanding shares in NTS ASA. The authorisation
is valid until the Annual General Meeting in 2023, however no longer
than until 30 June 2023.
Dividend
The Board is proposing payment of a dividend of NOK 20 per share,
totalling NOK 2,354.0 million, as at 31 December 2021. No dividend
is paid on the company’s treasury shares.
For the 2020 financial year, a dividend of NOK 20 per share, totalling
NOK 2,261.4 million, was paid out by SalMar ASA.
Financial Statements and Results Notes to the Financial Statements for 2021
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146
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.3 Earnings per Share
NOTE 4.4 Group Companies
The consolidated financial statements for 2021 includes the following subsidiaries:
Company Owner Country Registered oce
Shareholding
31.12.2021
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%
Hitramat Farming AS SalMar ASA Norway Kverva 51.00%
Nekton Havbruk AS SalMar Farming AS Norway Kverva 51.00%
Refsnes Laks AS
1
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
2
SalMar Aker Ocean AS Norway Kverva 43.35%
Icelandic Salmon AS SalMar ASA Norway Kverva 51.02%
Arnarlax Ehf Icelandic Salmon AS Iceland Bildudalur 51.02%
Icelandic Salmon Ehf Arnarlax Ehf Iceland Bildudalur 51.02%
Fjallalax Ehf Arnarlax Ehf Iceland Bildudalur 51.02%
SalMar AS SalMar ASA Norway Kverva 100.00%
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%
NOTE 4.3 Earnings per Share
NOK 1,000 2021 2020
Profit for the year attributable
to owners of SalMar ASA
2,616,716 1,979,018
Ordinary shares as at 01.01 113,299,999 112,922,858
Contributions of equity–increase
in number of shares
4,500,000 0
Eect of treasury shares awarded
to employees (see Note 2.4)
129,710 145,070
Weighted average number of
ordinary shares for basic EPS
115,714,546 112,947,036
Eects of dilution from
share options
207,323 216,665
Weighted average number
of ordinary shares adjusted
for the eect of dilution
115,921,869 113,163,701
Earnings per share
Basic 22.61 17.52
Diluted 22.57 17.49
1 Through shareholders agreement, SalMar has established control and has the power to aect the return from the involvement in Refsnes Laks AS.
For further information, see Note 4.5
2 SalMar Aker Ocean AS is owned by 85% of SalMar ASA. SalMar Aker Ocean AS owns 51% of the shares in Mariculture AS.
Financial Statements and Results Notes to the Financial Statements for 2021
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147
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.5 Business Combinations
NOTE 4.5 Business Combinations
Nekton Havbruk AS
With eect from 1 July 2021, the Group agreed to acquire 51 per cent of the shares in Nekton Havbruk AS.
The purpose of the transaction is to expand the Group's production of harvestable fish. Nekton Havbruk
AS currently has two licenses for production of Atlantic salmon, including a time limited demonstration
license in Central Norway, in total 1,568 tonnes MAB. For accounting purposes, the transaction will be
treated as a business combination, with the non-controlling interest assessed at fair value. No material
external transaction costs were incurred in connection with the acquisition. Assets and liablities recog-
nised as a result of the acquisition are as follows. The purchase price allocation is considered to be final.
Refsnes laks AS
With eect from 25 August 2021 the Group agreed to acquire 45% of the shares in Refsnes Laks AS
through a combination of share purchase and private placement. The transaction has been approved by
the Norwegian Competition Authorities. The purpose of the transaction is to expand the Group’s produc-
tion of harvestable fish. Refsnes Laks AS currently has five licenses for production of Atlantic salmon,
including a time limited demonstration license in Central Norway, in total 3,932 tonnes MAB. Through
shareholder agreements, SalMar has established control and has the power to aect the return from
the involvement in Refsnes Laks AS. Based on this, the company is consolidated into the SalMar Group
from the time of acquisition, which is defined as the Competition Authority’s time for approval of the
transaction. For accounting purposes, the transaction will be treated as a business combination, with
the non-controlling interest assessed at fair value. Assets and liabilities recognised as a result of the
acquisition are as follows. The purchase price allocation is considered to be final.
Acquisition’s eect on the
balance sheet (NOK 1,000):
Carrying
amount
Adjustment
to fair value Fair value
Intangible assets 25,992 1,224,008 1,250,000
Property, plant & equipment 111,661 0 111,661
Other non-current assets 11,138 0 11,138
Inventory and biological assets 187,789 0 187,789
Other current assets 345,078 0 345,078
Deferred tax assets/liabilities -38,011 -268,930 -306,942
Non-current liabilities -344,970 0 -344,970
Current liabilities -61,602 -1,598 -63,201
Net identifiable assets and liabilities 237,074 953,479 1,190,554
Goodwill 287,224
Non-controlling interests -812,778
Cash consideration 665,000
2020–business combinations
SalMar had no material business combinations in 2020.
Acquisition’s eect on the
balance sheet (NOK 1,000):
Carrying
amount
Adjustment to
fair value Fair value
Intangible assets 11,248 108,752 120,000
Property, plant & equipment 16,117 -1,824 14,292
Inventory and biological assets 75,237 -22,757 52,480
Current assets 95,036 0 95,036
Deferred tax assets/liabilities 18,656 -17,470 1,186
Non-current liabilities -2,303 0 -2,303
Current liabilities -156,776 -4,762 -161,538
Net identifiable assets and liabilities 57,215 61,939 119,154
Goodwill 37,709
Non-controlling interests -76,863
Cash consideration 80,000
Financial Statements and Results Notes to the Financial Statements for 2021
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148
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.6 Non-Controlling Interests
NOTE 4.6 Non-Controlling Interests
Non-controlling interests relating to subsidiaries
31 December 2021
Non-controlling
interests
shareholding
Non-controlling
interests accumulated
share of equity
1 Jan
Non-controlling
interests from
business combination
Share of profit
allocated to non-
controlling interests
OCI allocated to non-
controlling interests
Equity transactions
allocated to non-
controlling interests
Other changes in non-
controlling interests
Non-controlling
interests accumulated
share of equity
31 Dec
Refsnes Laks AS 55.00% 0 812,778 10,459 0 0 0 823,237
Nekton Havbruk AS 49.00% 0 76,863 7,252 0 0 0 84,115
SalMar Aker Ocean AS 15.00% 0 0 -2,409 0 638,432 -397,194 238,830
Mariculture AS 7.35% 2,972 0 0 0 0 -2,972 0
Icelandic Salmon AS 48.98% 1,000,190 0 13,058 -45,869 -6,702 0 960,678
Hitramat Farming AS 49.00% 38,715 0 9,828 0 0 0 48,543
Vikenco AS 49.00% 94,009 0 13,216 0 -9,800 0 97,425
1,135,886 889,640 51,404 -45,869 621,931 -400,167 2,252,827
Nekton Havbruk AS
With eect from 1 July 2021, the Group agreed to acquire 51 per cent
of the shares in Nekton Havbruk AS. For accounting purposes, the
transaction is treated as a business combination, with the non-con-
trolling interest assessed at fair value. or further information regarding
the transaction–see Note 4.5 Business Combinations.
Refsnes laks AS
With eect from 25 August 2021 the Group agreed to acquire 45 per
cent of the shares in Refsnes Laks AS. Through shareholder agree-
ments, SalMar has established control and the company is consolidated
into the SalMar Group from the time of acquisition. For accounting
purposes, the transaction is treated as a business combination, with
the non-controlling interest assessed at fair value. For further informa-
tion regarding the transaction–see Note 4.5 Business Combinations.
SalMar Aker Ocean AS
With eect from 15 November 2021, Aker ASA entered into a strategic
partnership with SalMar establishing SalMar Aker Ocean AS. As a part
of the transaction a share issue was carried out in SalMar Aker Ocean,
where Aker ASA contributed a net capital increase of 639.1 million.
The transaction led to a reduction in SalMar’s holding of shares in
the company from 100.0 per cent to 85.0 per cent. The reduction
is recognised as a change in non-controlling interests, and an eect
within equity of NOK 400.2 million is recognised in the period.
Financial Statements and Results Notes to the Financial Statements for 2021
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149
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.6 Non-Controlling Interests
31 Dec 2020
Non-controlling
interests
shareholding
Non-controlling
interests
accumulated
share of equity
1 Jan
Non-controlling
interests
from business
combination
Share of profit
allocated to non-
controlling interests
OCI allocated to non-
controlling interests
Equity transactions
allocated to non-
controlling interests
Other changes in
non-controlling
interests
Non-controlling
interests
accumulated
share of equity
31 Dec
Icelandic Salmon AS 48.98% 614,183 0 -10,415 26,962 479,024 -109,564 1,000,190
Hitramat Farming AS 49.00% 39,300 0 10,294 0 -10,878 0 38,715
Vikenco AS 49.00% 76,866 0 29,393 0 -12,250 0 94,009
Mariculture AS 49.00% 2,042 0 0 0 931 0 2,972
732,391 0 29,272 26,962 456,827 -109,564 1,135,886
Icelandic Salmon AS
In October 2020, 4,347,826 new shares, priced at NOK 115 per share, were issued in Icelandic Salmon
AS. The share issue raised net proceeds of NOK 500 million. Costs relating to the transaction have been
recognised as a reduction in equity amounting to NOK 21 million. Through the transaction SalMar reduced
its shareholding in the company from 59.36 per cent to 51.02 per cent. For accounting purposes, the
reduction has been recognised as a change in non-controlling interests, with the NOK 109.8 million
eect posted directly to equity in the period.
Financial Statements and Results Notes to the Financial Statements for 2021
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150
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Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.6 Non-Controlling Interests
Chapter start
Subsidiaries with material non-controlling interests:
The Group considers non-controlling interests in Icelandic Salmon AS, Refsnes Laks AS and SalMar Aker Ocean AS to be material. Further details relating to this companies are disclosed below.
NOK 1,000
SalMar
Aker Ocean
AS
2021
Refsnes
Laks AS
2021
Icelandic
Salmon AS
2021
Income statement
Operating revenues 0 159,364 918,848
Net profit/loss -14,420 19,017 26,658
OCI 0 0 -93,327
Total comprehensive income -14,420 19,017 -66,669
Total comprehensive income allocated
to non-controlling interests
-2,409 10,459 -32,811
Dividend paid to non-controlling interests 0 0 0
Statement of financial position as at 31 December
Non-current assets 1,004,418 993,278 1,310,522
Current assets 652,239 306,996 825,570
Equity 1,584,094 831,795 1,303,676
Non-current liabilities 44,012 331,590 648,293
Current liabilities 28,551 136,889 184,121
Recognised excess value of licences–net after tax 0 954,726 864,400
Share of equity allocated to shareholders of SalMar ASA 1,345,264 963,284 1,207,399
Share of equity allocated to non-controlling interests 238,830 823,237 960,678
Cash flows
From operating activities -18,789 -64,724 -31,405
From investing activities -4,100 2,579 -153,633
From financing activities 18,506 -278,582 191,971
Net increase/decrease in cash and cash equivalents -4,383 -340,728 6,933
NOK 1,000
Icelandic
Salmon AS
2020
Income statement
Operating revenues 662,337
Net profit/loss -20,740
OCI 73,029
Total comprehensive income 52,288
Total comprehensive income allocated
to non-controlling interests
16,547
Dividend paid to non-controlling interests 0
Statement of financial position as at 31 December
Non-current assets 789,108
Current assets 725,394
Equity 1,136,154
Non-current liabilities 15,188
Current liabilities 363,160
Recognised excess value of licences–net after tax 906,068
Share of equity allocated to shareholders of SalMar ASA 1,042,031
Share of equity allocated to non-controlling interests 1,000,190
Cash flows
From operating activities -12,202
From investing activities -112,409
From financing activities 138,559
Net increase/decrease in cash and cash equivalents 13,948
151
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.7 Related Party Transactions
Chapter start
NOTE 4.7 Related Party Transactions
The Group’s parent company is SalMar ASA. The parent company is K v erva Indus trier AS , which owns 50.88% of the shares in SalMar ASA. The
ultimate parent company is K v arv AS , which prepares its own consolidated accounts in accordance with NGAAP. See Note 4.2 for further details.
Transactions with related parties in 2021 (NOK 1,000): Sales Purchases Receivables Liabilities
Associates of the SalMar Group 211,107 70,285 36,534 0
Companies controlled by the parent company Kverva AS 1,693,721 354,038 205,806 20,705
Associates of the parent company Kverva AS 0 31,059 0 0
Transactions with related parties in 2020 (NOK 1,000): Sales Purchases Receivables Liabilities
Associates of the SalMar Group 190,096 115,075 15,938 9,059
Companies controlled by the parent company Kverva AS 1,802,574 294,577 120,834 6,916
Associates of the parent company Kverva AS 1,965 54,632 0 0
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).
NOTE 4.8 Allegations of Price Collusion
On 6 February 2019, the European Commission launched an investigation
of the SalMar ASA and several other producers of farmed Norwegian
Atlantic salmon, concerning alleged anti-competitive conduct.
Following the European Commission’s investigation, multiple lawsuits
were launched against SalMar ASA and several other salmon producers
in the United States. Complaints were filed on 23 April, 25 April (subse-
quently dropped), 29 April, 9 May, 15 May, 17 May, 20 May, 28 May and
11 June 2019 (subsequently dropped). After consolidation of the cases,
there are now two ongoing class actions pending before the District
Court in Florida, filed by direct and indirect purchasers respectively. Both
cases concern the same allegation of anti-competitive conduct as the
European Commission’s investigation.
In November 2019, the U.S. Department of Justice Competition Divi-
sion launched an investigation concerning the same allegation. As of
now, it remains uncertain whether the Department of Justice will pros-
ecute the case.
In addition, complaints were filed against SalMar ASA, as one of several
Norwegian producers of salmon, before a Federal Court in Toronto on
11 October 2019 and 3 January 2020. These cases were consolidated,
and currently one case is pending before the Federal Court. Lawsuits
have also been filed before a local court in Vancouver and in Quebec,
but these cases are currently on hold pending a decision in the Federal
Court. These cases all concern the same allegation of anti-competitive
conduct as the European Commissions investigation.
SalMar is not aware of circumstances substantiating the allegation of
anti-competitive conduct and is of the opinion that the company has not
participated in any form of illegal price fixing. The cases are still in an early
stage and the outcome is highly uncertain. SalMar is fully cooperating in
with all relevant authorities in these matters. The outcome of the case is
highly uncertain, and no provisions have been made in respect of these
matters as at 31 December 2021.
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Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.9 Covid-19
Chapter start
NOTE 4.9 Covid-19
The many public health measures implemented worldwide during
the pandemic have increased market uncertainty. Throughout the
Covid-19 period, SalMar has nevertheless demonstrated that it is
well equipped to handle challenging situations. The Covid-19 had no
material impact on the company’s financial results in the period or the
book value of assets as of 31 December 2021.
NOTE 4.10 Events Occurring After the Reporting Period
New information concerning the company’s financial position on
the reporting date is disclosed in the annual financial statements.
Events occurring after the reporting period that do not aect the
company’s financial position on the reporting date, but which will
aect it in the future, are disclosed where material.
Interest swap contracts
With eect 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.
Impact from war in Ukraine
SalMar have no assets in neither Russia, Belarus nor Ukraine and
as a market SalMar have not sold volume to Russia nor Belarus for
the last years. Ukraine as market however has accounted for a mar-
ginal proportion of the volume sold. Nevertheless, with the sanctions
imposed following the war in Ukraine some volume will need to be
reallocated from other salmon farmers which may impact supply into
certain markets.
Ukraine is also a large agricultural country and therefore the war
creates heightened uncertainty and increased inflationary pressure
regarding raw material for certain ingredients in the fish feed. SalMar
is well equipped to handle this situation as the company has a strong
partnership with its feed suppliers and are one of the most ecient
salmon producers with low feed conversion ratio and best results on
key fish welfare indicators. In addition salmon as a protein source is of
the most resource ecient animal protein sources and an increase in
feed cost has a lower impact on salmon producers, compared to other
producers of animal protein sources.
The ban of the air space over Russia reduces the air freight capacity to
the Asian markets creating logistical challenges. In addition the recent
increase in energy prices may indirectly impact other cost elements in
our value chain such as transportation and packaging.
SalMar ASA launched a voluntary oer for all
outstanding shares in NTS ASA (NTS):
In February 2022, SalMar announced that it would launch a voluntary
oer to acquire all outstanding shares in NTS at NOK 120 per share,
valuing the equity capital of the NTS at approximately NOK 15.1 billion.
Shareholders representing a total of 50.1 percent of the outstanding
shares in NTS had then pre-accepted the oer.
NTS has as long track-record in salmon farming, both in Central and
Northern Norway as well as the Western ords of Iceland. The combi-
nation will strengthen the competence base and production capacity
and be a catalyst for further sustainable growth in the local commu-
nities where the companies operate.
The voluntary oer will be settled in a combination of cash and shares.
An extraordinary general meeting in SalMar ASA on 14 March 2022
authorised the board to increase the company’s share capital accord-
ingly. Completion of the oer is subject to, among other things, regu-
latory approvals and a satisfactory confirmatory due diligence.
153
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.11 Alternative Performance Measures
Chapter start
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 dierence 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 2021 2020
Operating profit/loss 3,450,968 2,827,968
Production tax 71,601 -
Onerous contracts 180,970 16,030
Fair value adjustment:
Change in fair value of the biological assets -835,155 186,136
Change in unrealised Fish Pool contracts 14,368 8,560
Change in unrealised value of forward currency contracts 44,245 -31,194
Operational EBIT 2,926,996 3,007,500
EBIT/kg gw
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.
2021
Fish Farming
Central
Norway
Fish Farming
Northern
Norway
Icelandic
Salmon SalMar Group
Operational EBIT (NOK 1,000) 2,118,499 1,242,506 74,007 2,926,996
Volume harvested (tonnes) 110,671 59,847 11,537 182,056
EBIT/kg gw (NOK) 19.14 20.76 6.41 16.08
2020
Fish Farming
Central
Norway
Fish Farming
Northern
Norway
Icelandic
Salmon SalMar Group
Operational EBIT (NOK 1,000) 2,218,390 847,754 -50,490 3,007,500
Volume harvested (tonnes) 100,394 49,903 11,239 161,535
EBIT/kg gw (NOK) 22.10 16.99 -4.49 18.62
154
Financial Statements and Results Notes to the Financial Statements for 2021
Contents
Financial Statements and Results Notes to the Financial Statements for 2021 Note 4.11 Alternative Performance Measures
Chapter start
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 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 interest-bearing debt. To highlight total interest bearing debt including leasing
liabilities, this is presented as a separate measure.
NOK 1,000 2021 2020
Long-term debt to credit institutions 4,906,560 3,677,627
Short-term debt to credit institutions 571,274 1,438,435
Cash & cash equivalents -901,644 -223,447
Net interest-bearing debt (NIBD) 4,576,190 4,892,615
Lease liabilities 967,166 933,695
NIBD incl. lease liabilities 5,543,356 5,826,310
155
Financial Statements and Results Annual Financial Statements
Contents
Chapter start
Financial Statements and Results Annual Financial Statements
Annual Financial
Statements
SalMarASA
2021
Statement of Profit or Loss
NOK 1,000
Operating revenue and expenses Note 2021 2020
Operating revenue 2, 6 84,321 87,228
Total operating revenue 84,321 87,228
Salary and personnel expenses 3 -65,882 -57,180
Depreciation and amortisation 8 -2,904 -3,150
Other operating expenses 3 -88,313 -61,382
Total operating expenses -157,099 -121,712
Operating loss -72,778 -34,484
Financial items
Income from investments in group companies 5 2,361,115 2,182,644
Interest income 5 99,031 89,008
Interest expenses 5 -114,032 -77,550
Other financial items 23,991 340
Net financial items 2,370,106 2,194,443
Profit before tax 2,297,328 2,159,959
Income tax expense 14 -504,830 57
Profit for the year 1,792,497 2,160,017
Allocated to:
Dividend 13 2,353,953 2,261,359
Transferred from other equity -561,456 -101,342
Total allocated 1,792,497 2,160,017
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157
Financial Statements and Results Annual Financial Statements
Contents
Chapter start
Financial Statements and Results Annual Financial Statements
Balance Sheet
NOK 1,000
Assets Note 31.12.2021 31.12.2020
Non-current assets
Deferred tax assets 14 0 1,372
Other intangible assets 7 7,160 0
Property, plant and equipment 8, 16 9,545 8,370
Investments in subsidiaries 9, 16 3,498,366 2,699,784
Investments in associates 10 468,287 162,787
Intercompany non-current receivables 6, 16 7,018,201 3,209,088
Other non-current receivables 12 31,842 30,168
Other non-current financial assets 154 123
Total non-current assets 11,033,555 6,111,692
Current assets
Trade receivables 16 1,523 1,565
Intercompany current receivables 6, 16 2,568,959 4,085,647
Other current receivables 25,730 14,158
Other financial instruments 15 24,887 0
Cash and cash equivalents 11 10,814 11,614
Total current assets 2,631,913 4,112,984
Total assets 13,665,468 10,224,676
Chapter start
Contents
158
Financial Statements and Results Annual Financial Statements
Contents
Chapter start
Financial Statements and Results Annual Financial Statements
Balance Sheet
NOK 1,000
Equity & liabilities Note 31.12.2021 31.12.2020
Equity
Share capital 13 29,450 28,325
Treasury shares -26 -58
Share premium 3,101,968 415,285
Other paid-in equity 292,552 239,392
Total paid-in equity 3,423,944 682,944
Retained Earnings 2,073,679 2,635,135
Total retained earnings 2,073,679 2,635,135
Total equity 5,497,624 3,318,079
Non-current liabilities
Deferred tax liabilities 14 3,771 0
Non-current interest bearing debt 15, 16 4,364,984 3,463,529
Total non-current liabilities 4,368,755 3,463,529
Current liabilities
Current interest bearing debt 15, 16 356,240 1,046,134
Trade payables 7,651 2,656
Tax payable 15 493,505 0
Dividend 13 2,353,953 2,261,359
Public duties payable 143,121 77,638
Intercompany current liabilities 6 399,519 39,347
Other current liabilities 45,101 15,933
Total current liabilities 3,799,090 3,443,067
Total liabilities 8,167,845 6,906,597
Total Equity and Liabilities 13,665,468 10,224,676
Frøya, 31 March 2022
Leif Inge Nordhammer
Chair of the Board
Margrethe Hauge
Vice-Chair of the Board
Linda L. Aase
Board member
Magnus Dybvad
Board member
Tone Ingebrigtsen
Employees representative
Simon Andre Søbstad
Employees representative
Gustav Witzøe
CEO
Contents
159
Financial Statements and Results Annual Financial Statements
Contents
Chapter start
Financial Statements and Results Annual Financial Statements
NOK 1,000
Share
capital
Treasury
shares
Share
premium
Other paid-in
equity
Retained
Earnings
Total
equity
Equity 31.12.2020 28,325 -58 415,285 239,392 2,635,135 3,318,079
Profit for the year 0 0 0 0 1,792,497 1,792,497
Dividend 0 0 0 0 -2,353,953 -2,353,953
Contribution of equity 1,125 0 2,707,875 0 0 2,709,000
Transaction costs related to capital contribution, net of tax 0 0 -21,192 0 0 -21,192
Share-based payment, release 0 32 0 -32 0 0
Share-based payment, expensed 0 0 0 52,987 0 52,987
Share-based payment, tax eect 0 0 0 205 0 205
0 0 0 0 0 0
Equity 31.12.2021 29,450 -26 3,101,968 292,552 2,073,679 5,497,624
Statement of Changes in Equity
NOK 1,000
A share-based remuneration scheme has been established for senior executives and other key personnel. See Note 3 for further details.
See Note 13 for information regarding private placement and dividend in the year.
Contents
160
Financial Statements and Results Annual Financial Statements
Contents
Chapter start
Financial Statements and Results Annual Financial Statements
Statement of Cash Flows
NOK 1,000
NOK 1,000 Note 2021 2020
Cash flow from operating activities
Profit before tax 2,297,328 2,159,959
Tax paid in the period 14 0 -558,790
Income from investments in group companies 6 -2,361,115 -2,182,644
Net other financial items and interests -8,990 -11,799
Depreciation and amortisation 8 2,904 3,150
Share-based payment, expensed 3 8,136 6,276
Change in trade receivables -19,344 66,291
Change in trade payables 22,778 10,565
Change in other accruals 67,800 -67,856
Net cash flow from operating activities 9,496 -574,847
Cash flow from investing activities
Purchase of property, plant & equipment 7, 8 -4,080 -2,795
Purchase of intangible assets -7,160 0
Net payments/ proceeds, loans to/ from group companies 6 -1,670,372 -2,568,429
Receipts of group contributions and dividends from subsidiaries 6 2,171,322 2,558,161
Increase of share capital in group companies 9 -824,216 0
Increase of share capital in associates 10 -305,500 0
Payments for other investments in subsidiaries and associates 0 -15,759
Receipts on loans to third parties 0 8,416
Other financial income related to investment activities 87,627 68,860
Net cash flow from investing activities -552,379 48,454
Net cash flow from financing activities
Repayments on long-term debt -2,557,647 -117,647
Net proceeds from long-term borrowings 3,453,743 1,300,000
Change in overdraft facility -689,894 874,836
Contributions of equity net of transaction cost 8 2,681,831 0
Dividend paid -2,261,359 -1,469,874
Net interest paid -84,591 -59,079
Net cash flow from financing activities 542,083 528,235
Net change in cash and cash equivalents -800 1,842
Cash and cash equivalents 01.01 11,614 9,772
Cash and cash equivalents 31.12 10 10,814 11,614
Unused drawing rights 15 4,443,760 1,113,866
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161
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Contents
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Notes to the Financial Statements for 2021, SalMar ASA
Note 1 General Information and Accounting Policies 163
Note 2 Operating Revenue 164
Note 3 Salary and Personnel Expenses 165
Note 4 Auditors Fees 165
Note 5 Financial Items 165
Note 6 Intercompany Transactions 166
Note 7 Intangible Assets 166
Note 8 Property, Plant and Equipment 167
Note 9 Subsidiaries 167
Note 10 Associates 168
Note 11 Cash and Cash Equivalents 168
Note 12 Other Non-Current Receivables 168
Note 13 Share Capital and Shareholders Information 168
Note 14 Tax 169
Note 15 Non-Current Interest Bearing Debt 170
Note 16 Security Pledges and Contingent Liabilities 171
Note 17 Financial Risk 172
Note 18 Covid-19 172
Note 19 Events Occurring After the Reporting Period 172
Contents
Chapter start
162162
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, 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).
Use of estimates
Preparation of the financial statements in accordance with NGAAP
requires management to make estimates and assumptions which
aect 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 contin-
uously and final values and results may dier from these estimates.
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.
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. If the recoverable value of an operating
asset is lower than its book value, it is written down to the 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 and associated company
Subsidiaries and associates 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 impairment 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.
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 eect of any vesting conditions, but does not
take account of any vesting conditions which are not market condi-
tions. However, vesting conditions which are not market conditions
aect the number of RSUs expected to accrue.
Contents
163
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 2 Operating Revenue
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 eect 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 dierences 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 dierences that reverse or may reverse in the same period
are oset. 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.
NOTE 2 Operating Revenue
The parent company SalMar ASA is a holding company, which primarily
provides administrative services to group companies. SalMar ASA’s sales
revenues therefore derive from only one business area. Revenue from
intra-group services and other revenues are specified below.
NOK 1,000 2021 2020
Revenues - intercompany services 83,771 86,533
Other revenues 551 695
Total 84,321 87,228
Contents
164
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 3 Salary and Personnel Expenses
NOTE 3 Salary and Personnel Expenses
Salary and personnel expenses (NOK 1,000): 2021 2020
Salaries and other short-term employee benefits 45,507 42,910
Social security expenses 6,749 5,324
Pension expenses 1,647 1,457
Share-based payment 8,136 6,276
Other benefits 3,843 1,213
Total 65,882 57,180
Average number of full-time equivalents employed during the financial year 39 34
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.
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 2021 was made on 21 December 2021. In
connection with this, 20 employees were granted 20,138 RSUs with respect to company shares. In the
corresponding award in 2020, 13 employees was granted a total of 19,030 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 2021 was NOK 8.1
million (2020: NOK 6.3 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.
Pension plans
SalMar ASA has a defined contribution plan in accordance with the legal requirements in Norway.
Premiums paid with respect to the defined-contribution scheme are expensed as incurred. In 2021,
NOK 1.6 million in pension contributions were recognised in expenses. The scheme includes 39 people.
NOTE 4 Auditors Fees
Breakdown of auditor's fee: (NOK 1,000): 2021 2020
Audit services 495 727
Other certification services 385 0
Tax advisory services 490 456
Other non-audit fees 130 194
Total 1,500 1,377
*The fees are ex. VAT
NOTE 5 Financial Items
Financial income and expenses (NOK 1,000) 2021 2020
Group contributions 2,361,115 21,322
Dividends from group companies 0 2,161,322
Income from investments in group companies 2,361,115 2,182,644
Interest income group companies 88,923 86,420
Other interest income 10,109 2,589
Total interest income 99,031 89,008
Interest expense group companies -1,305 -17,560
Other interest expense -112,727 -59,990
Total interest expense -114,032 -77,550
Change in fair value - other financial instruments 24,887 0
Other financial items -896 340
Total other financial items 23,991 340
Net financial items 2,370,106 2,194,443
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165
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 6 Intercompany Transactions
NOTE 6 Intercompany Transactions
Group internal receivables and liabilities (NOK 1,000) 2021 2020
Intercompany non-current receivables 7,018,201 3,209,088
Trade receivables 207,844 117,972
Group financing receivables 0 1,796,352
Group contributions 2,361,115 21,322
Dividends from group companies 0 2,150,000
Intercompany current receivables 2,568,959 4,085,647
Trade payables 57,130 39,347
Group financing payables 342,389 0
Intercompany current liabilities 399,519 39,347
Group internal revenue and cost (NOK 1,000) 2021 2020
Revenue - intercompany services 83,771 86,533
Group contributions 2,361,115 21,322
Dividends from group companies 0 2,161,322
Income from investments in group companies 2,361,115 2,182,644
Interest income group companies 88,923 86,420
Interest expense group companies -1,305 -17,560
Net interest income group companies 87,618 68,860
NOTE 7 Intangible Assets
2021 – NOK 1,000
Other
intangible
assets Total
Acquisition cost at 1 January 2021 0 0
Additions 7,160 7,160
Disposals 0 0
Acquisition cost at 31 December 2021 7,160 7,160
Accumulated depreciation & write-downs at 1 January 2021 0 0
Depreciation in the year 0 0
Accumulated depreciation & write-downs at 31 December 2021 0 0
Carrying amount at 31 December 2021 7,160 7,160
Economic lifetime 3-5 years
Depreciation method Linear
Capitalised other intangible assets are implementation cost related to cloud based ERP arrangements.
The implementation is not finalized and no amortisation is recognised in 2021.
Contents
166
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 8 Property, Plant and Equipment
NOTE 8 Property, Plant and Equipment
2021 – NOK 1,000
Land and
buildings
Equipment
and fixtures Total
Acquisition cost at 1 January 2021 2,885 34,508 37,393
Additions 673 3,406 4,080
Disposals 0 0 0
Acquisition cost at 31 December 2021 3,558 37,914 41,472
Accumulated depreciation & write-downs at 1 January 2021 171 28,852 29,023
Depreciation in the year 0 2,904 2,904
Accumulated depreciation & write-downs at 31 December 2021 171 31,756 31,927
Carrying amount at 31 December 2021 3,387 6,159 9,545
Economic lifetime zero.depr. / 3 years 5-10 years
Depreciation method Linear Linear
Annual lease of uncapitalised operating assets 3,305 0 3,305
2020 – NOK 1,000
Land and
buildings
Equipment
and fixtures Total
Acquisition cost at 1 January 2020 2,823 31,775 35
Additions 61 2,733 3
Disposals 0 0 0
Acquisition cost at 31 December 2020 2,885 34,508 37,393
Accumulated depreciation & write-downs at 1 January 2020 171 25,702 25,873
Depreciation in the year 0 3,150 3,150
Accumulated depreciation & write-downs at 31 December 2020 171 28,852 29,023
Carrying amount at 31 December 2020 2,713 5,657 8,370
Economic lifetime zero.depr. / 3 years 5-10 years
Depreciation method Linear Linear
Annual lease of uncapitalised operating assets 3,423 0 3,423
NOTE 9 Subsidiaries
Company (NOK 1,000)
Registered
oce
% of
ownership
interest
Carrying
amount 2021
% of
ownership
interest
Carrying
amount 2020
SalMar Settefisk AS Kverva 100.0% 223,256 100.0% 224,680
SalMar Farming AS Kverva 100.0% 483,020 100.0% 488,672
SalMar AS Kverva 100.0% 1,197,833 100.0% 1,201,822
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% 898,023 100.0% 12,044
Ocean Farming AS Kverva 0.0% 0 100.0% 73,031
Mariculture AS Stavanger 0.0% 0 51.0% 2,969
Icelandic Salmon AS Kverva 51.0% 660,049 51.0% 660,381
Total 3,498,366 0 2,699,784
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.
As a part of an internal reorganization, SalMar ASA completed a capital contribution in SalMar Aker
Ocean in 2021. The capital contribution was partly made by cash, and partly with SalMars shares in
Ocean Farming AS and Mariculture AS. The internal reorganization was made to prepare the strategic
partnership between Aker and SalMar, establishing SalMar Aker Ocean. A share issue was carried out in
SalMar Aker Ocean as a part of the transaction, where Aker contributed a net capital increase of NOK
639.1 million. The transaction led to a reduction in SalMar’s holding of shares in the company from
100.0% to 85.0% in 2021.
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Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 10 Associates
NOTE 12 Other Non-Current Receivables
NOK 1,000 2021 2020
Other non-current receivables 31,842 30,168
In connection with the sale of a tranche of shares in Icelandic Salmon AS to Gyda EHF in 2019,
a seller’s credit was granted to the purchaser with the total amount of NOK 35.7 million. As at 31
December 2021, a total of NOK 31.8 million remained outstanding. For further information, see Note
3.7 in the group financial statement.
NOTE 13 Share Capital and Shareholders Information
Share capital and number of shares 31.12.2021
Total number of shares Nominal value
Total share
capital
Ordinary shares 117,799,999 0.25 29,450
As of 31 December 2021, SalMar ASA has 117,799,999 shares with a nominal value of NOK 0.25 per
share. All shares issued by the Company are fully paid. There is one class of shares and all shares have
the same rights.
See Note 4.2 to the consolidated financial statements for a list of the company’s largest shareholders
and the shareholdings of senior executives.
Private placement
On June 8, 2021, SalMar ASA’ share capital was increased by 4,500,000 shares (nominal value of NOK
0.25 per share), from 113,299,999 shares to 117,799,999 shares. The share capital was thus increased
by NOK 1,125 million, from NOK 28,325 million to NOK 29,450. The total amount of the capital contri-
bution was NOK 2,709.0 million.
Dividend
Provision has been made for a dividend payment of NOK 20.00 per share, totalling NOK 2,354.0 million,
as at 31 December 2021. No provision is made with respect to treasury shares.
NOTE 10 Associates
Investments in associates are recognised in accordance with the cost method.
Company (NOK 1,000):
Registered
oce
% of ownership
interest
Carrying
amount 2021
Carrying
amount 2020
Norskott Havbruk AS Bergen 50% 468,287 162,787
Total 468,287 162,787
In 2021 there has been a capital contribution in Norskott Havbruk AS with a total amount of NOK 611.0
million, SalMars contribution was NOK 305.5 million. For further description of the transaction, see Note
3.5 in the group financial statement.
Company (NOK 1,000): Recognised dividend
Equity in latest
annual financial
statements
Year’s net profit
in latest annual
financial statements
Norskott Havbruk AS 0 2,114,946 163,380
NOTE 11 Cash and Cash Equivalents
NOK 1,000 2021 2020
Cash at bank 377 1,343
Restricted cash - withholding tax 9,222 9,056
Other restricted cash 1,215 1,215
Cash and cash equivalents 10,814 11,614
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Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 14 Tax
NOTE 14 Tax
NOK 1,000
Specification of this years tax expense 2021 2020
Tax payable 493,505 0
Change in deferred tax 11,325 -57
Adjustment of earlier year's taxes 0 0
Total income tax expense in the statement of profit and loss 504,830 -57
Basis for tax payable 2021 2020
Profit before tax 2,297,328 2,159,959
Dividends recognised in profit and loss 0 -2,161,322
Other permanent dierences -2,647 1,102
Other permanent dierences with tax eect against equity -27,169 0
Change in temporary dierences -24,306 260
Taxable profit 2,243,206 0
Tax payable in the Balance sheet 2021 2020
Tax payable on this year's profit 493,505 0
Tax payable 493,505 0
Specification of temporary dierences 2021 2020
Non-current assets -1,415 -1,614
Current assets -6,333 0
Other dierences 24,887 -4,621
Total basis for deferred tax 17,139 -6,235
Deferred tax liabilities (+) / tax assets (-) 3,771 -1,372
Deferred tax recognised directly in equity 6,182 -260
Reconciliation between nominal and eective tax rates 2021 2020
Profit before tax 2,297,328 2,159,959
Tax calculated with nominal tax rate 505,412 475,191
Dividends 0 -475,491
Other permanent dierences -582 243
Total income tax expense in the statement of profit and loss 504,830 -57
Eective tax rate 22.0% 0.0%
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Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 15 Non-Current Interest Bearing Debt
NOTE 15 Non-Current Interest Bearing Debt
Non-current interest bearing debt
NOK 1,000 2021 2020
Green bond 3,500,000 0
Non-current loan 705,882 823,529
Non-current revolver credit facility 200,000 1,500,000
Non-current revolver capex facility 0 1,140,000
Amortized cost -40,898 0
Total non-current interest bearing debt
4,364,984
3,463,529
Maturity profile - non-current interest bearing debt
NOK 1,000 2022 2023 2024 2025 2026 2027 Total
Green bond 0 0 0 0 0 3,500,000 3,500,000
Non-current loan 117,647 117,647 470,588 0 0 0 705,882
Non-current revolver
credit facility
0 0 0 0 200,000 0 200,000
Amortized cost -8,046 -8,046 -8,046 -8,046 -8,046 -670 -40,898
Total
109,602
109,602
462,543 -8,046
191,954
3,499,330
4,364,984
With eect from 24 February 2021, SalMar ASA has entered into a new sustainability linked credit facility
in the amount of NOK 4,000 million, and, at the same time, increased its overdraft cap from NOK 500
million to NOK 1,000 million. The new sustainability linked credit facility is a five-year agreement, with
four sustainability KPIs included in the assessment of margin.
With eect from 22 April 2021, SalMar ASA has 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 eective interest rate method. The loan’s net book
value as at 31 December 2021 is NOK 3,459 million. The bond loan is listed on the Oslo Stock Exchange
under the ticker SALM01 ESG.
At the same time as the bond loan was entered into, a currency swap was agreed for EUR 98.3 million
at a fixed rate of interest. The currency swap has the same term as the bond loan. The purpose of the
currency swap is to reduce the group’s foreign exchange risk relating to net investments in international
operations denominated in EUR. In addition, the currency swap provides a fixed rate of interest on that
portion corresponding to NOK 1,000 million. The market value of the swap contract is recognised at fair
value in the balance sheet. Changes in value are recognised in profit and loss as a financial item. As at
31 December 2021, the currency swap had a market value of NOK 24.9 million.
Financial covenants
The most important financial covenants for the long-term financing of SalMar ASA are, respectively,
a solvency requirement, which stipulates that the Group’s recognised equity ratio shall exceed 35%,
and a profitability requirements which stipulates that the interest coverage rate (EBITDA/net financial
expenses) shall not exceed 4.0.
The green bond has a financial covenant requiring an equity ratio of 30% in the agreement period.
See Note 17 for further details of the company’s financing.
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Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 16 Security Pledges and Contingent Liabilities
NOTE 16 Security Pledges and Contingent Liabilities
Carrying amount of interest bearing debt secured by
mortgages and pledges
NOK 1,000 2021 2020
Non-current interest bearing debt 905,882 3,463,529
Current interest bearing debt 356,240 1,046,134
Total 1,262,122 4,509,664
Carrying amount of assets pledged as security for
recognised debt
NOK 1,000 2021 2020
Property, plant and equipment 9,545 8,370
Investments in subsidiaries 3,498,366 2,699,784
Trade receivables 1,523 1,565
Current and non-current receivables 9,619,002 7,324,903
Total 13,128,437 10,034,622
Through the group cash pooling arrangement, SalMar ASA has joint
liabilities limited to NOK 1,000 million.
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 NTE in the amount of NOK 5
million on behalf of SalMar Settefisk AS. The guarantee was issued
on 1 January 2004, and is reduced stepwise by NOK 250,000 per
year. As of 31 December 2021, the outstanding amount guaranteed
totalled NOK 500,000.
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 supple-
mentary 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 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.
SalMar ASA has issued a guarantee to Bjørn Bygg AS in the amount
of NOK 96.1 million. The guarantee has been issued as security for
SalMar Settefisk AS’s liabilities to the creditor in respect of a contract
to project design and construct new smolt facilities on Senja.
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Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA
Chapter start
Contents
Financial Statements and Results Notes to the Financial Statements for 2021, SalMar ASA Note 17 Financial Risk
NOTE 17 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 18 Covid-19
The many public health measures implemented worldwide during the pandemic has increased market uncertainty.
Throughout the Covid-19 period, SalMar has nevertheless demonstrated that it is well equipped to handle
challenging situations. Covid-19 had no material impact on the company’s financial results in the period or the
book value of assets as of 31 December 2021. See the Group's annual report for further details.
NOTE 19 Events Occuring After the Reporting Period
Interest swap contracts
With eect from 4 February 2022, SalMar ASA entered into interest swap contracts with a fixed rate totalling
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 to reduce the interest rate risk related to long-term loan.
Impact from war in Ukraine
The war in Ukraine will not have material direct impact on the company’s financial results or the book value
of assets as of 31 December 2021. For further information, see Note 4.10 in the Group Financial Statement.
SalMar ASA launched a voluntary oer for all outstanding shares in NTS ASA (NTS):
In February 2022, SalMar announced that it would launch a voluntary oer to acquire all outstanding shares in
NTS at NOK 120 per share, valuing the equity capital of the NTS at approximately NOK 15.1 billion. Shareholders
representing a total of 50.1 percent of the outstanding shares in NTS had then pre-accepted the oer. For
further information, see Note 4.10 in the Group Financial Statement.
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Financial Statements and Results Statement by the Board of Directors and CEO
Contents
Chapter start
Financial Statements and Results Statement by the Board of Directors and CEO
Statement by the Board
of Directors and CEO
Frøya, 31 March 2022
Leif Inge Nordhammer
Chair of the Board
Margrethe Hauge
Vice-Chair of the Board
Linda L. Aase
Board member
Magnus Dybvad
Board member
Linda L. Aase
Board member
Simon Andre Søbstad
Employees representative
Gustav Witzøe
CEO
We confirm, to the best of our knowledge, that:
The Group financial statements for the period from 1 Jan-
uary to 31 December 2021 have been prepared in accor-
dance with IFRS, as adopted by the EU.
The financial statements of SalMar ASA for the period from
1 January to 31 December 2021 have been prepared in
accordance with Norwegian Accounting Act and accounting
standards 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.
174
Financial Statements and Results Independent Auditor’s Report
Contents
Chapter start
Financial Statements 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 2021 and the statement of profit
and loss, statement of cash flows and statement of changes in equity
for the year then ended and notes to the financial statements, includ-
ing a summary of significant accounting policies. The consolidated
financial statements of the Group comprise the balance sheet as at
31 December 2021, statement of profit and 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 a summary of significant accounting policies.
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 2021
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 2021 and its financial performance
and cash flows for the year then ended in accordance
with International Financial Reporting 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
responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sucient 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 9 years from the election
by the general meeting of the shareholders on 5 June 2013 for the
accounting year 2013.
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 2021. 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 responsi-
bilities 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 assess-
ment of the risks of material misstatement of the financial state-
ments. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our
audit opinion on the financial statements.
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Financial Statements and Results Independent Auditor’s Report
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Financial Statements and Results Independent Auditor’s Report
Fair value 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 2021 the
biological assets amounted to NOK 7,280.9 million. The dierence
between the fair value of the biological assets and the related cost
is recognized as a fair value adjustment. In 2021, the recognized fair
value adjustment amounted to NOK 835.2 million. The fair value
adjustment included in the carrying amount was NOK 2,645.6 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 2.8 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 the chief executive
ocer) 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 responsi-
bility is to read the other information, and, in doing so, consider whether
the board of directors’ report, the statement on corporate gover-
nance and the statement on sustainability and corporate 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
other wise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement
of this other information or that the information required by applicable
legal requirements is not included, we are required to report that fact.
We have nothing to report in this regard, and in our opinion, the board
of directors’ report and the statement on corporate social responsi-
bility are consistent with the financial statements and contain the
information required by applicable legal requirements.
Responsibilities of management for the
financial statements
Management is responsible for the preparation and fair presentation
of the financial statements of the Company in accordance with the
Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway and of the consolidated financial state-
ments of the Group in accordance with International Financial Report-
ing Standards as adopted by the EU, and 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.
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Financial Statements 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 sucient
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 eectiveness 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 sucient 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.
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Financial Statements 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 our audit of the financial statements of SalMar ASA we have
performed an assurance engagement to obtain reasonable assurance
whether the financial statements included in the annual report, with
the file name salmarasa-2021-12-31-en.zip, has 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 given with legal basis in 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 an annual report and
iXBRL tagging of the consolidated financial statements that complies
with the ESEF Regulation. This responsibility comprises an adequate
process and such internal control as management determines is neces-
sary to enable the preparation of an annual report and iXBRL tagging
of the consolidated financial statements that is compliant with the
ESEF Regulation.
Auditor’s responsibilities
Our responsibility 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 based on the
evidence we have obtained. We conducted our engagement 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 that the financial statements
included in the annual report have been prepared in accordance with the
ESEF Regulation.
As part of our work, we performed procedures to obtain an understanding
of the company’s processes for preparing its annual report in XHTML
format. We evaluated the completeness and accuracy of the iXBRL tag-
ging and assessed management’s use of judgement. Our work comprised
reconciliation of the iXBRL tagged data with the audited financial state-
ments in human-readable format. We believe that the evidence we have
obtained is sucient and appropriate to provide a basis for our opinion.
Trondheim, 31 March 2022
Ernst & Young AS
Christian Ronæss
State Authorised Public Accountant
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Financial Statements and Results GRI Index and Third-Party Verification
Contents
Chapter start
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 2021 includes data for a number of disclosures drawn from GRI’s guide-
lines. An overview of which indicators the report covers is presented in the table below. In 2021 SalMar
is reporting according to the consolidated set of GRI sustainability reporting standards from 2020.
EY has carried out a limited third-party verification of the 2021 report. The KPIs in the report that have
been verified, along with accompanying comments, are presented below.
GRI Index
General Disclosures (GRI 102)
Organizational profile
102-1 Name of the organization Salmar A SA
102-2 Activities, brands, products and services
and organic, as well as rainbow trout.
102-3 Location of headquarters Industriv eien 51, 7266 K verva , Norway
102-4 Locations of operations
Eight countries, the most important
of which for sustainability reporting
purposes are Norway and Iceland
102-5 Ownership and legal form
Salmar ASA is a public limit ed compan y
that is listed on the Oslo Stock Exchange.
102-6 Markets served Page 70–84
102-7 Scale of the organization Page 70–84
102-8 Information on employees and other workers Page 50
102-9 Supply chain Page 70–84 and 13
102-10
Significant changes to the
organization and its supply chain
See note 4.5 and 4.6 to the
group financial statements
102-11 Precautionary principle or approach Page 21
102-12 External initiatives Page 34 and 53–54
102-13 Membership of associations
Norwegian Seafood Federation,
Confederation of Norwegian Enterprise (NHO),
OrAqua - Organic Aquaculture, Federation
of European Aquaculture Producers (FEAP)
Strategy
102-14 Statement from senior decision-maker Page 6–8 and 70–84
102-15 Key impacts, risks and opportunities Page 70–84
Ethics and integrity
102-16
Values, principles, standards
and norms of behaviour
Page 17 and www.salmar.no
102-17
Mechanisms for advice and
concerns about ethics
Page 51
Governance
102-18 Governance structure Page 21
102-19 Delegating authority Page 21
102-20
Executive-level responsibility for economic,
environmental and social topics
Page 21
102-21
Consulting stakeholders on economic,
environmental and social topics
Page 22–23
102-22
Composition of the highest governance
body and its committees
Page 55–67
102-23 Chair of the highest governance body Page 55–67
102-24
Nominating and selecting the
highest governance body
Page 55–67
102-25 Conflicts of interest Page 55–67
102-26
Role of highest governance body in
setting purpose, values and strategy
Page 55–67
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102-27
Collective knowledge of highest
governance body
Page 55–67
102-28
Evaluating the highest governance
body’s performance
Page 55–67
102-29
Identifying and managing economic,
environmental and social impacts
Page 20 and 55–67
102-30 Eectiveness of risk management processes Page 55–67
102-31
Review of economic, environmental
and social topics
Page 55–67
102-32
Highest governance body’s role
in sustainability reporting
Page 20, 55–67 and 70–84
102-33 Communicating critical concerns Page 55–67
102-34 Nature and total number of critical concerns Page 51 and 55–67
102-35 Renumeration policies
Page 51 and see notice to AGM 2021
where the guidelines where approved
102-36 Process for determining remuneration
See notice to AGM 2021 where
the guidelines where approved
102-37 Stakeholders involvement in remuneration
See notice to AGM 2021 where
the guidelines where approved
Stakeholder engagement
102-40 List of stakeholder groups Page 22
102-41 Collective bargaining agreements 86.1% of the workforce
102-42 Identifying and selecting stakeholders Page 22
102-43 Approach to stakeholder engagement Page 22
102-44 Key topics and concerns raised Page 22-23
Reporting practice
102-45
Entities included in the consolidated
financial statements
Page 70-84 and note 4.4
102-46 Defining report content and topic boundaries Page 20–23
102-47 List of material topics Page 23
102-48 Restatement of information N/A
102-49 Changes in reporting No material changes
102-50 Reporting period 2021
102-51 Date of most recent report 22 April 2022
102-52 Reporting cycle Annual
102-53
Contact point for questions
regarding the report
Head of IR Håkon and Head of
sustainability Mats Wærøe Langseth
102-54
Claims of reporting in accordance
with the GRI standards
Page 180
102-55 GRI content index Page 180–182
102-56 External assurance Page 183–185
Management approach (GRI 103)
103-1
Explanation of the material
topics and its boundary
Page 20–23
103-2
The management approach
and its components
Page 20–23
103-3 Evaluation of the management approach Page 20–23 and 55–67
Economic topics (GRI 200)
201-1
Direct economic value generated
and distributed
Page 70–84
201-3
Defined benefit plan obligations
and other retirement plans
See note 2.5
205-2
Communication and training about anti-
corruption policies and procedures
Page 55–67
205-3
Confirmed incidents of corruption
and actions taken
Page 54
206-1
Legal actions for anti-competitive behaviour,
anti-trust, and monopoly practices
Page 54
Environmental topics (GRI 300)
301 Materials used by weight or volume Page 30
302-1 Energy consumption within the organization Page 38–43
302-3 Energy intensity Page 38–43
302-4 Reduction of energy consumption Page 38–43
303-1 Interactions with water as a shared resource Page 45
303-3 Water withdrawal Page 45
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305-1 Direct (Scope 1) GHG emissions Page 38–43
305-2 Energy indirect (Scope 2) GHG emissions Page 38–43
305-3 Other indirect (Scope 3) GHG emissions Page 38–43
305-4 GHG emission intensity Page 38–43
305-5 Reduction of GHG emissions Page 38–43
306-1
Waste generation and significant
waste-related impacts
Page 29 and 46
306-2
Management of significant
waste-related impacts
Page 29 and 46
307-1
Non-compliance with environmental
laws and regulations
Page 54
Social topics (GRI 400)
403-1
Occupational health and safety
management system
Page 49–54
403-2
Hazard identification, risk assessment,
and incident investigation
Page 49–54
403-3 Occupational health services Page 49–54
403-4
Worker participation, consultation,
and communication on occupational
health and safety
Page 49–54
403-5
Worker training on occupational
health and safety
Page 49–54
403-6 Promotion of worker health Page 49–54
403-8
Workers covered by an occupational
health and safety management system
Page 49–54
403-9 Work-related injuries Page 49–54
403-10 Work-related ill health Page 49–54
404-2
Programs for upgrading employee skills
and transition assistance programs
Page 49–54
405-1
Diversity of governance
bodies and employees
49–54 and 55–64
416-2
Incidents of non-compliance
concerning the health and safety
impacts of products and services
Page 33–36
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Third-party verification
The following shows the KPIs that have been the subject of third-party verification by EY.
People & Society
KPI Indicator
Safety &
sicknessabsence
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
Economic 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
2
e) 305-1+2
Intensity Scopes 1+2
(kgCO
2
e/tonne produced)
305-4
Scope 3 (GHG tCO
2
e) 305-3
Intensity Scope 3
(kgCO2e/tonn produced) 305-4
Intensity Scopes 1+2+3
(kgCO
2
e/tonne produced)
305-4
Secondary
processing
Share of secondary processing Own KPI
Site environment MOM-B-Score ≤ 2 Own KPI
Consumption of
fresh water
Consumption (1,000 m
3
) Own KPI
Intensity (liter per kg produced) Own KPI
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To the Board of Directors of SalMar ASA
Independent accountant’s assurance
report – selected indicators in SalMar
ASA’s sustainability reporting 2021
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
selected indicators of SalMar ASA ’s sustainability reporting. The indi-
cators assessed by us are indicated on p. 183 of SalMar ASA’s annual
report (the “Subject Matter”) as of 31 December 2021 for the period
from 1 January 2021 to 31 December 2021.
Other than as described in the preceding paragraph, which sets out the
scope of our engagement, we did not perform assurance procedures
on the remaining information included in the sustainability reporting,
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, “Core” option (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). These Criteria are publicly available at
globalsalmoninitiative.org. 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.
We consider these reporting criteria to be relevant and appropriate to
review the sustainability reporting.
SalMar ASA’s responsibilities
The Board of Directors and Group Chief Executive Ocer (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 sucient and appropriate
to provide a basis for our limited assurance conclusions.
Our Independence and Quality Control
We have maintained our independence and confirm that we have met
the requirements of the Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants.
EY also applies International Standard on Quality Control 1, Quality
Control for Firms that Perform Audits and Reviews of Financial State-
ments, and Other Assurance and Related Services Engagements,
and accordingly maintains a comprehensive system of quality control
including documented policies and 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 had a reasonable assur-
ance engagement 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 eectiveness 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.
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Our procedures included:
• Reviewed SalMar ASA’s process for preparation and
presentation of the sustainability report to develop an
understanding of how the reporting is conducted within
the business
• Interviewed those in charge of sustainability reporting
to develop an understanding of the process for the
preparation of the sustainability reporting
• Verified on a sample basis the information in the
sustainability reporting against source data and other
information prepared those in charge
• Assessed the overall presentation of sustainability
reporting against the criteria in the GRI, GSI and SalMar
ASA’s customized Standards including a review of the
consistency of information against the GRI index.
We have performed these procedures on the following indicators, that
also form the scope of our conclusion:
GRI 305-1
GRI 305-2
GRI 305-3
GRI 305-4
GRI 403-9
GRI 403-10
GSI Fish Mortality
GSI Antibiotic Use
GSI Wildlife Interactions
GSI Fish Escapes
GSI Certifications
SalMar ASA’s customized indicators for feed (FFDR and use of marine
raw materials), degree of processing, site-specific environment, and
freshwater consumption and intensity. Freshwater consumption and
intensity are not to be confounded with GSI’s indicator named water
consumption. The one applied by SalMar ASA is liter per kg biomass
produced, as opposed to GSI applying liter per kg edible meat.
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.
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 of 31 December 2021 and for the period from 1 January
2021 to 31 December 2021 in order for it to be in accordance with
the Criteria.
Trondheim, 31 March 2022
Ernst & Young AS
Christian Ronæss
State Authorised Public Accountant
185
