Mowi (MOWI) CMD 2024 summary

Strategic Growth and Operational Plans

• Targeting organic farming volume growth to 600,000 tons (GWT) by 2029, supported by EUR 600 million CapEx, leveraging unutilized license capacity, post-smolt strategies, and increased smolt stocking.

• Aiming for 7-8% annual top-line growth to reach EUR 8.5 billion in operating revenues by 2029, with contingency built into volume targets.

• Focused on fjord-based and flow-based salmon farming, while monitoring alternative production forms and considering accretive M&A opportunities.

• Growth to be achieved through post-smolt expansion, productivity improvements, and leveraging the integrated value chain across all regions.

• Regional strategies include significant post-smolt investments in Norway, expansion in Scotland, Chile, and Iceland, and adaptation to regulatory changes in Canada West.

Cost Competitiveness and Efficiency Initiatives

• Identified EUR 300-400 million in untapped cost-saving potential, with one-third from post-smolt, one-third from Smart Farming (Mowi 4.0), and one-third from generic cost initiatives.

• Cost savings programs since 2018 have delivered EUR 307 million in annualized savings, with a focus on standardization, procurement, and productivity improvements.

• Ongoing initiatives include a EUR 60 million cost-cutting target in sales and marketing, and further automation and digitalization in processing and feed operations.

• Feed inflation pressures are easing, with feed prices down 5% year-to-date and further decreases expected, driven by marine ingredients.

• Productivity gains include an 18% increase in FTE efficiency since 2019, with further improvements expected through automation and natural turnover.

Innovation, Technology, and Sustainability

• Mowi 4.0 digitalization strategy is advancing, with real-time monitoring, autonomous feeding, and Smart Farming concepts rolled out across regions.

• Smart Factory and Mowi Insight platforms enable data-driven decision-making, yield optimization, and enhanced customer value.

• Sustainability is a core pillar, with recognition from FAIRR and Time Magazine, and updated climate targets aligned with 1.5°C.

• Achieved a 36% reduction in Scope 1 and 2 emissions since 2019, 99% of harvest volumes certified sustainable, and 100% sustainable feed sourcing.

• Ongoing R&D and digitalization investments exceed EUR 100 million over three years, supporting improved fish welfare and operational efficiency.