Måsøval Annual Report 2020

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Content

2020 AND BEYOND Highlights 2020 Key ! gures CEO summary Growth projects

6 - 7 8 - 9 10 -1 1 12 - 17 18 - 19 20 - 21 24 - 27 28 - 33 34 - 35 36 - 37 40 - 41 42 - 43 44 - 45 46 - 47 39 48 - 49 50 - 51 52 - 53 54 - 55 56 - 57 58 - 59 60 - 61 62 - 63 62 - 63 66 - 71 72 - 76 78 - 79 80 - 82 83 - 93

· Aqua Semi · Post-smolt

ABOUT MÅSØVAL Our history

Management and leadership

Company structure

Our sites Glossary

Our operations · Smolt

· Farming · Sites · Service

· Administration and sta "

SUSTAINABILITY IN MÅSØVAL Måsøval and the UN’s sustainability goals Electri ! cation of o " shore installations Fish health and welfare Quality: Healthy and safe seafood Our values and ethical guidelines Health, safety and the environment Our ESG initiatives

Employee development

FINANCIAL RESULTS Board of directors’ report Financial statements Independent auditor’s report Accounting principles

Notes

RECIPES Pioneered by our employees

94 - 99

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Made by nature

Måsøval is a Norwegian ! sh farming pioneer. Ever since the company was founded in 1973, our dedicated employees have worked in close harmony with nature. On the coast of central Norway, the Atlantic provides strong currents and high tidal range, ensuring an abundance of fresh, clean seawater. It’s here, in one of the most beautiful coastal landscapes in the world, that we make one of the best ingredients in the world – Salmon: Made by nature, pioneered by Måsøval. Led by the third generation of the Måsøval family, we now produce more than 16 000 tonnes of salmon a year, serving 1.6 million people – every single week, year round. And even though we’ve already achieved a lot, we’re still hungry for more sustainable growth.

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! ighlights 2020

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928/221/242 The group achieved NOK 928 million in turnover, operating results of NOK 221 million and a pre-tax pro ! t of NOK 242 million.

93% A salmon survival rate of 93%, which signi ! cantly contributed to good production. 16 253 In 2020 we achieved an impressive production record of 16 253 tonnes GW, or 1.6 million meals a week.

13.63 EBIT per kg was NOK 13.63 in a year when the market was challenging at times. 2 000 000 tonnes of MAB purchased at auction in 2020, which will generate a 22% sales growth from 2022. 780 We were selected to operate educational licences of 780 tonnes for Guri Kunna upper secondary school, starting fromMay 2021. This will increase sales by 9% from 2022.

Aqua Semi qua Semi engineering work has progressed. Construction could potentially begin in 2021. 3 120 tonnes in development licences granted.

2 000 000 Property purchased and preliminary work initiated on the Frøya land-based post-smolt project. The facility aims at producing 2.0 million post-smolt a year.

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Key " gures for 2020

2020

2019

CONSOLIDATED NUMBERS IN 1 000 NOK

Sales revenue salmon

887 372 40 740 928 111 16 253 271 988 221 471 242 444 199 139

848 801 38 389 888 190 15 435 235 321 187 656 157 330 122 229

Other revenue

Sum operating revenue Harvested volume (tonnes)

EBITDA

Operating result Pre-tax pro ! t Annual pro ! t

Sales price per kg salmon Production cost per kg salmon

52.80 39.17 13.63

53.88 41.72 12.16

EBIT per kg salmon

Book value biomass

352 634 1 667 543 492 020 775 062

319 423 1 131 330 421 165 293 523

Total assets Book equity

Net interest-bearing debt

EBITDA margin Operating margin

29.3% 23.9% 29.5% 22.5%

26.5% 21.1% 37.2% 28.0%

Equity ratio

Return on capital employed (ROCE) (1)

1) EBIT/(average of opening balance and outgoing balance of Net interest-bearing debt + equity - Financial assets)

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Continued growth in a challenging year CEO SUMMARY

During the last year, I’ve often re " ected on how lucky I am to live in Norway and be a part of Måsøval and the aquaculture industry. 2020 turned out to be a special year with a pandemic that has a " ected the entire world.

It’s had a heavier impact in other parts of the world, and we’re fortunate to live in a country with one of the best social safety nets in the world. However, many industries are struggling here at home, and there are many people who are out of work and facing the uncertainty which that entails.

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Despite a few months when the salmon price was lower than normal, the consequences for Måsøval have been minor compared with the challenges most other companies have experienced. Moreover, it’s meaningful to be able to contribute by providing healthy and sustainable food for the world and workplaces that are stable and create value. I would like to thank all of my colleagues who have contributed to ensuring that Måsøval has endured the pandemic safely, with no cases of infection. OPERATIONAL EXECUTION Operationally, 2020 was a good year for Måsøval.We achieved all of the key goals set by the board in our action plan. In 2020, we achieved a salmon survival rate that was as high as 93%, which is signi ! cantly higher than average –both for the region and the country. We are carrying on the positive trend from recent years, and maintaining good biological control. Thank you to everyone for conducting thorough risk analyses and making excellent assessments every single day. And thanks to all of you who take part in making our most important decisions at our weekly biology meetings on Tuesdays at 08:00. Good ! sh health has provided good growth. 2020 was yet another year with production growth. Never before have we yielded so much from each individual license we have been operating. I’m pleased to state that employee health is good in Måsøval.We have a low rate of sickness absence, both in terms of our activities and in light of the pandemic. I am particularly happy to report that for the second year in a row we have had no observable incidents that have, or that could have potentially had, serious consequences. Systematic HSE e " orts over the years involving improvements, learning, and risk-reducing measures have yielded results. It’s also a pleasure to state that we received very good feedback on our employee survey on Måsøval as a workplace for the second year running. DEVELOPMENTS Since the tra # c light scheme in 2020 gave PO6 the green light for further growth, ! sh farmers

were granted the opportunity to acquire production volume by auction. Our owners have con ! dence in us, and Måsøval therefore acquired a total of 2 000 tonnes - second most among ! sh farmers in the country. In addition, we won the contract with Guri Kunna upper secondary school to run the vocational training licence for 10 years, starting April 1, 2021. It’s a pleasure to be trusted as the main partner for an institution that educates tomorrow’s aquaculture experts. In total, these developments have led to in excess of 30% growth for Måsøval. Our goal is to translate this into salmon harvest starting in 2022. The growth gives us the opportunity to develop new sites and invest more resources in important areas such as service capacity and on-shore production. Aqua Semi continued in 2020 with engineering. During the course of this year, we will have the necessary information to be able to assess a construction contract. The project is exciting in terms of utilising a new space, providing a better environment for the salmon to live in, and further improving our biological performance. Aqua Semi is a transformational project for us, in terms of both new technology and further growth. Our goal is to start building the unit in 2021, and carry out the ! rst release of ! sh in 2024. VISION Following a long project period involving all employees, we launched our new vision at the end of 2020: ’Made by Nature –Pioneered by Måsøval’. It feels right to focus on the production of Atlantic salmon at its source –as close to nature’s own production as possible. We are proud to have a workplace that was part of the origins of Norwegian salmon farming. Today, our workplace is better positioned than ever, and will have a prominent place when the chapter on the future of aquaculture is written. Thank you to our owners for being willing to believe in us, and to all our colleagues for their exemplary e " orts in 2020. I look forward to the

continuation. Asle Rønning CEO, Måsøval

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Further growth to 2027 and beyond

From 2016 to 2020, Måsøval has created projects that have yielded, and will yield, an average annual growth of 14% in the ten-year period from 2017 to 2027. We have managed to achieve this by acquiring licenses for 2000 tonnes in 2020, and through strategic projects together with good partners. In addition to increasing production volume, Aquagen, Pure Norwegian Seafood AS, Guri Kunna upper secondary school and Vard Group AS are all players that add valuable expertise in key areas for Måsøval. HEALTHY SALMON GROWS FASTER Måsøval’s ability to increase utilisation of every single tonne of the company’s available MAB, through better ! sh health, lower mortality and increased growth, makes us well-positioned to realise this growth potential in the years ahead. From 2016 to 2020, Måsøval has created projects that have yielded, and will yield,

an average annual growth of 14% in the ten-year period from 2017 to 2027. We are currently barely halfway into this 10-year period, and the company will continue to maintain a strong focus on seizing and developing the growth opportunities that arise. We would be greatly disappointed if we don’t succeed in creating even more opportunities in the years to come.

$ NOK '000 % HARVEST VOLUME $ TONNES GW %

2017 2018 2019 2020 2021 2022 Target 2027

7 909 13 203 15 435 16 253 17 666 21 554 28 519

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Growth projects

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GROWTH PROJECT # AQUA SEMI:

Four important development licences

Ill: Aqua Semi – operational position.

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In 2019, Måsøval won the competition for four licences that are important to the development of new technology. The Aqua Semi concept consists of 4 000 tonnes of stainless steel and innovative solutions that make it possible to operate aquaculture in new, more exposed waters. Aqua Semi is a semi-submersible, semi-closed production unit for salmon. The unit has sealed steel walls to a depth of 25 meters and all operational functions are integrated. This signi ! cantly reduces the risk of escape, lice and other waterborne pathogens, which will contribute to better ! sh health and more rapid growth. THE ART OF THINKING BIG Once completed, Aqua Semi will be located at Fagerholmen in the Frøyfjord. Although this area has strong ocean currents that ensure a good supply of fresh, nutritious water, there are also climatic challenges that make it unsuitable for small, traditional facilities. Although Aqua Semi was built to handle harsh weather conditions, the industry has experienced that big facilities can have completely unique challenges: the forces of nature are bigger, and separate equipment must be developed to meet the requirements. Together with Vard and other partners, we've put great e " ort into the design process to handle these challenges, and to ensure good integration of equipment and good ! sh

welfare throughout the production phase. We have conducted extensive studies to uncover the biological requirements for water quality in a semi-closed unit with major biomass, as well as to uncover which measures ensure a good aquatic environment in & uctuating production conditions. THE PROTOTYPE IS READY The unit's design is ! nally complete and testing of the prototype was conducted in a seawater pool at Sintef Ocean in spring 2020, with independent design veri ! cation subsequently carried out by DNVGL. The project has been developed with Vard, a global player in the design and building of ships and specialised vessels. Today, Vard has 8 200 employees with its head o # ce in Norway and building facilities in Norway, Romania, Brazil and Vietnam. The biggest stakeholder in Vard is the Italian group Fincantieri S.p.A. PROGRESS SCHEDULE In Q2 2021, fundamental design work on the project is set to be completed. The next step is the building contract, which we have planned to enter into in Q3 2021. The unit will then be launched in 2023, and the ! rst generation of production is planned to start in early 2024. The production cycle will be <10 months if the project is successful, and two test generations will be completed during the period 2024–2026.

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GROWTH PROJECT # AQUA SEMI

AQUA SEMI TECHNOLOGY GOALS: •Utilise sites with strong tides, where conventional technology can not currently be used. •Reduce the risk of lice/other waterborne risk through shielding from other water masses. •Reduce the risk of escape. • Improved ! sh welfare and biological performances through monitoring and controlling the growth environment and reducing the need for handling operations.

Aqua Semi – overview of process equipment and ! sh-handling

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Aqua Semi – position for maintenance and cleaning between generations

AQUA SEMI PRODUCTION PLAN # DEVELOPMENT LICENCES

APPLICATION

PROJECT EXECUTION

2017 2018 2019 2020 2021

2022 2023 2024 2025 2026 2027

APPLICATION DESIGN CONSTRUCTION

PRODUCTION GEN 1 PRODUCTION GEN 2 CONVERSION

The unit is made for operational cycles of <10 months. If the project is successful in terms of biology and its design concept, a harvest of 2 500–3 000 tonnes will be completed per year in the foreseeable future.

Completion of the project will add new expertise on big and challenging projects to the company, and contribute to a growth in production from 2024 onwards.

VOLUME

2024

2025

2026

2027

Number of ! sh released

640 000

640 000

640 000 1 300 000*

Harvested volume GW (tonnes)

2 600

2 600

6 000*

*Licenses after conversion

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GROWTH PROJECT # POST $ SMOLT

Bigger smolt - reduced risk

It’s possible to reduce the time spent in open nets when ! sh are permitted to grow a little bigger before being released. This reduces the risks associated with salmon lice and other pathogens. Måsøval has therefore prepared a major investment in the production of bigger smolt. Måsøval has good experience with the production of post-smolt. By combining di " erent smolt sizes in a holistic production plan, we not only improve ! sh health, it also allows us to more easily utilise the maximum allowable biomass (MAB). At the same time, the production capacity of post-smolt enables us to utilise the freshwater facilities more e # ciently by moving parts of the production via the post-smolt facility, and thereby better ful ! l the company’s need to release ! sh into the sea. In short, Måsøval’s post- smolt strategy helps us reduce biological risk throughout the entire production phase,

at the same time as we are increasing the exploitation of the company’s production permits. As part of the Aqua Semi growth project, we plan to release 640 000 post-smolts with a minimum size of 500 grams. This is an ambitious goal that we will achieve through a new and bold investment in our own production of post-smolt. TWO DIFFERENT SCHOOLS OF THOUGHT Today, the aquaculture industry has many opportunities to achieve good production of post-smolt. Land-based facilities and semi-closed and closed o " shore units are alternative approaches to meeting the biological demands this type of ! sh sets us as ! sh farmers. Whether one chooses & ow- through or RAS technology, it’s the interaction between nature, technology, ! sh, and people that comprises the key to successful production.

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Although o " shore facilities have lower investment and energy costs, o " shore production of post-smolt must take place within the framework of the company’s MAB. Strict regulatory requirements also lead to a signi ! cant risk that it will not be possible to transport the ! sh to ordinary o " shore facilities if it should be exposed to disease. Although land-based production has higher costs relating to investments and energy consumption, it also provides increased control of water quality and pathogens. In addition, the biomass produced is not included in the company’s MAB, which helps increase the total production volume. Overall, Måsøval therefore believes that land-based production of post-smolt provides the best preconditions for success, both in terms of biology and pro ! tability. LAND $ BASED Since o " shore post-smolt production creates both technological and regulatory challenges, Måsøval is now working on an exciting project

on land: We have acquired a land-based & ow- through facility at Frøya, where major parts of the infrastructure are already in place. Along with the company’s wide expertise, we have thereby also secured ourselves the opportunity to establish e # cient and safe production, with relatively limited investments. The facility currently has the capacity for an annual production of 500 tonnes. After initial testing and development of the post-smolt production, we aim at doubling the current capacity. There is a great deal of vacant land available around the facility, and we have established a good dialogue with the landowner regarding necessary acquisitions. We have submitted an application for licenses and certi ! cates to the proper authorities, and are awaiting their response. Our plan is to transfer the ! rst post smolt to sea in 2023.

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GROWTH PROJECT # POST $ SMOLT

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THE ROAD AHEAD The licence application is currently being completed and will be submitted to the authorities in the ! rst half of April 2021. Detailed planning of technical solutions for the

facility will take place at the same time as the application is being administered. The ! nal investment decision will be made after we have clari ! ed any objections that may arise during administration of the licence application.

MAI JUN JUL AUG SEP OKT NOV DES JAN FEB MAR APR MAI JUN JUL AUG SEP OKT NOV DES JAN FEB MAR APR MAI JUN JUL AUG SEP OKT NOV DES JAN FEB MAR APR MAI JUN JUL AUG SEP OKT NOV DES JAN 2020 2021 2022 2023 2024

PURCHASE A PLOT OF LAND ENVIRONMENTAL SURVEYS PRE ! ENGINEERING APPLICATION/APPLICATION ADMINISTRATION DETAILED ENGINEERING " PHASE 1 AND 2 # INVESTMENT DECISION

TEST PRODUCTION FULL PRODUCTION FIRST PRODUCTION FOR AQUA SEMI

PROGRESS SCHEDULE

950 000 1 700 000 325 500 2023 2024

NUMBER DELIVERED AVERAGE DELIVERY WEIGHT ! GW "

PRODUCTION PLAN

According to the production plan, the current facility will start up in autumn 2022, with two subsequent production cycles, in tandem with the outlined expansion to double capacity. In this phase, we will gain valuable experience prior to the ! rst big delivery to Aqua Semi.

The amount that is projected to be delivered in January 2024 will both cover that required by Aqua Semi and parts of the company's ordinary production.

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VEKSTPROSJEKT # POSTSMOLT

Much has changed since Karsten started Måsøval Fiskeoppdrett together with his father and brother. Photo: Måsøval.

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Once a pioneer, always a pioneer

Karsten became one of the ! rst aquaculture pioneers when he and his father and brother built a small freezer room and nailed together the ! rst net pens in 1973. They had no employees, and worked long days with a rowboat and raw muscle power. ”It was almost like working on a ! shing vessel; we had to sleep when we had a few hours o " ,” he reminisces. Karsten is not afraid to admit that they sometimes doubted whether this - in the eyes of many others - foolhardy venture was worthwhile. ”Things haven’t always gone smoothly, but we got through it, and today we have a completely di " erent company than when we ! rst started,” he says.

In the beginning, all of the net pens were lined up in a row along the shore, just a stone’s throw from the garden fence. Today, production has moved out to the open sea, and has spread to as many as 15 sites along the coast down from Trøndelag. In the beginning, they travelled around and sold the ! sh themselves, while today, 10 million people eat Måsøval salmon every single week. Is he proud of that as one of the original founders? ”I’m proud that my boys want to keep running the business! I’m proud that a new generation is interested in my life’s work – what my father and brother helped start. I think that’s almost the best thing about this!”

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Marion and Karsten have been married for decades, and are two of the ! rst salmon farming pioneers.Photo: Måsøval.

Important strategic events in the group

Måsøval sells its stake in Salmar.

Måsøval acquires a 33% stake in Nordskag ! sk.

Måsøval takes part in founding Norway Royal Salmon.

First investment in salmon.

First broodstock facility acquired. 1998

1977 1982

1992

1973

1978

1990 1997 2003

The company was founded by Edvin Måsøval and sons.

Sons Bjørn and Karsten take over the company.

Salmar founded together with Gustav Witzøe following

Måsøval acquires a 66% stake in Gunnar Espnes Fiskeoppdrett on Frøya.

Måsøval acquires Vikan Fishfarm on Hitra.

Nordskag ! sk bankruptcy.

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Måsøval acquires 2.5 new licences, increasing production by 2 000 tonnes. Måsøval enters into a 10-year deal to develop tomorrow’s workforce on yet another licence

Aquagen collaboration on reserve stock/ broodstock production at 2 licences launched.

Laxar is acquired (today Måsøval eiendom, Måsøval

Broodstock facility at Hitra acquired. Måsøval partners with Pure Norwegian Seafood at Averøya. 2004 2009 2016 2018 2020 New salmon license won. Fiskeoppdrett’s parent company owns a 59% stake). Production capacity of 22 000 tonnes achieved.

2005 2011

2017 2019

Måsøval completes its takeover of Brattøy ! sk at Frei Måsøval Fishfarm AS is founded, with a 63.9% stake.

Fish farming company Lernes acquired together with its 4 licences.

Application for development licences on the Aqua Semi project.

Måsøval strengthens its smolt production by acquiring Åsen Sette ! sk AS.

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MANAGEMENT

Leadership is what you do, not who you are

As a Norwegian aquaculture pioneer, Måsøval has always had strong aquaculture expertise and management that’s not afraid of getting its feet wet. Although we have become bigger and more professional over the years, the management in Måsøval remains hands- on, just a short distance from both operations, employees and nature.

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MANAGEMENT

Management group

ASLE RØNNING ' CEO Asle has an MBA in civil economics and an Executive MBA in strategic management from the Norwegian School of Economics (NHH). He has management experience from Gilde, House of Beauty and BEWI prior to starting in Måsøval in 2013. Asle is known for cooking with fantastic ingredients from the sea as often as he can.

GUNNAR AFTRET ' CFO Gunnar has an MBA in civil economics from the Norwegian School of Economics (NHH). Prior to starting in Måsøval in 2019, he gained management experience in Coop and Brødrene Dahl. Gunnar loves hiking in the mountains and has spent many summers in the French Alps.

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HARRY OSVALD HANSEN ' Head of Farming/Sea Harry has a craft certi ! cate in ! sh farming and a two- year education in ! sheries technology from university college, but –most important of all –he has over 30 years’ experience in the ! sh farming industry. Harry Osvald has challenged the Måsøval family to become the ! rst people to ascend all of the peaks on Hitra island.

LARS JØRGEN ULVAN ' Head of Smolt Lars Jørgen has a cand.scient. degree in marine resources and aquaculture from the Norwegian University of Science and Technology (NTNU). He has a background as a biologist with experience fromAtlantic Cod juveniles, before becoming CEO of Nordland Rense ! sk. Lars Jørgen enjoys exploring the wonders of nature together with his son.

INGAR KYRKJEBØ ' Head of Service Ingar has a bachelor’s degree in aquaculture from Sogndal University College and a postgraduate certi ! cate in teaching from Nord-Trøndelag University College (HiNT). He has been operations manager in Hydro Seafood and Marine Harvest, among others. Ingar is a patient west coast native who is most happy when sitting on a tree stump waiting for a deer to appear.

HENNY FØRDE ' Head of Sales and Logistics Henny has a master’s degree in marine biology and aquaculture from the Norwegian University of Science and Technology (NTNU), and has worked in Måsøval since 2014, ! rst as a biological controller, and now in her current position as head of sales. Henny is most happy when boating around all of the beautiful islands of Hitra and Frøya.

ANDREAS SKAGØY ' Head of Fish Health Andreas has a master`s degree in aquatic medicine from The Arctic University of Norway (UIT). He has a back- ground fromÅkerblå, where he managed a team of ! sh health pro " essionals.Andreas and his family love the out- doors and taking long walks in varied nature is one of life`s greatest pleassures. He has even written a book about it.

BERIT FLÅMO ' Head of Communications Berit is an registered nurse and has studied HR and management at Levanger University College. She has been both mayor and council member in Frøya municipality for a number of years. Berit ! nds good maritime nature experiences to be the most rejuvenating.

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The board of directors

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LARS MÅSØVAL ' Chair of the board Lars Måsøval has a craft certi ! cate in aquaculture, and has been part of Måsøval his entire life. He worked as an aquaculture technician until 2004, after which he built up the smolt facility at Laksåvika. In 2011, he took over as managing director in Måsøval, and led the company until 2015. Since then, he has been the working chair in the company.

ANDERS MÅSØVAL ' Deputy board member Anders Måsøval has a bachelor’s degree in economics and administration from BI, and worked with accounting in Måsøval Fish Farming until 2019. Today he works in the parent company Måsøval Eiendom. Anders owns the company together with Lars.

OLA LOE ' Board member Ola Loe has 26 years of experience in the aquaculture industry, in ! nance and management. He has been CFO in Norway Royal Salmon since 2011. Prior to 2011, he worked in auditors KPMG and Arthur Andersen & Co and has been responsible auditor for Fjord Seafood, Mowi, Cermaq and Norway Pelagic, among others, and group auditor for several listed companies.

KARI SKEIDSVOLL MOE ' Board member Kari Skeidsvoll Moe holds law degrees from the University of Oslo, and Humboldt Universität zu Berlin, and a Post Graduate Diploma of EU Competition Law from King’s College, London. In addition to experience from practicing private law, she served as legal counsel and later Vice President in Norsk Hydro ASA, and is currently EVP General Counsel and Head of Administrative Sta " at TrønderEnergi AS.

ARNFINN AUNSMO ' Board member Arn ! nn Aunsmo holds a PhD from the Norwegian School of Veterinary Science. He works with all aspects of ! sh health, as well as production optimization, strategic planning, and ! sh-technology interaction. He has 25 years’ experience in the industry. He is currently COO in Laxar, an Associate Professor at NMB, and is a board member in several companies.

JOHN BINDE ' Board member John Binde has held numerous executive positions in a variety of internationally-oriented companies, and has worked in the aquaculture industry since 2001. He has 10 years’ experience as CEO in Norway Royal Salmon ASA, and is currently Executive Chairman in Scanbio Marine Group, and is a board member in several companies.

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OUR OPERATIONS

Positive ripple e ! ects in every sense of the term

Måsøval Fiskeoppdrett AS has ambitions of creating value far beyond the company’s own ! nancial results. We own, operate, and develop numerous aquaculture companies, which have a positive ripple e % ect and generate value throughout the region.

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OUR OPERATIONS

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MÅSØVAL OWNS 100% OF THE FOLLOWING COMPANIES: Åsen Sette ! sk AS

MÅSØVAL HOLDS A MAJORITY STAKE OR IS PART OWNER IN THE FOLLOWING COMPANIES: Gunnar Espnes Fiskeoppdrett AS (66%) The company has a licence that is operated by Måsøval. The remaining stake is held by Gunnar Espnes’s heirs. Måsøval Fishfarm AS (64%) The company has two licences that are operated by Måsøval. The remaining stake is held by NRS. The licences have previously been owned by Vikan Fish Farm and Brattøy ! sk. Tjeldbergodden Rense ! sk AS (30%) The company produces lice-eating cleaner ! sh, mainly lump ! sh, that are delivered to Måsøval’s edible ! sh facilities.

Måsøval acquired Åsen Sette ! sk in Levanger municipality in 2019. The facility has an annual production capacity of 2.5 million smolts. Måsøval Sette ! sk AS Currently consists of the Laksåvika ! sh facility at Hitra. The facility produces 2.7 million smolts per year. Eidsvaag Akva AS In 2020, we acquired the shipowners Eidsvaag Akva AS in order to secure our own delousing capacity. The Luma delousing unit has been one of Måsøval’s most important tools against lice since then.

On Land:

Fagerholmen Frøya Nord

Skjelvika

Hovedkontor

Frøya Øst

Skjelvika

Flamek

Daløya

Frøya Sør

Åsen

Blåbasen

Laksåvika

Trondheim

Kristiansund

Pure Norwegian Seafood Averøy

Frei

Aukra

Molde

At Sea:

Flatøyan

Lamøya Fjølværet Ø

Langøya

Bukkholmen S

Espnestaren

Ilsøya 2

Trondheim

Hårkallbåen

Kristiansund

Kattholmen

Or

Gaustad

Orholmen

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Molde

OUR OPERATIONS

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GLOSSARY BIOMASS The standing biomass of ! sh at any time (measured in kilos or tonnes). MAB Maximum allowable biomass – refers to the total maximum biomass a company is permitted to have standing in the sea. MAB is regulated at two levels: site and company. TGC Thermal growth coe # cient is a common growth model in ! sh farming, that takes into account the size of the ! sh and the water temperature variation. PO Production area ( produksjonsområde , in Norwegian). From 15 October 2017, a new system was introduced for increasing capacity in Norwegian salmon and trout production. The coast is now divided into 13 areas, in which environmental factors regulate capacity. Area 5: Stad to Hustadvika and Area 6: Nordmøre and Sør-Trøndelag. GENERATION Traditionally, the release of salmon is divided into two generations per year, often referred to as spring ! sh (1 year olds) and autumn ! sh (0 year olds). PD Pancreas disease is a viral illness that causes reduced growth and increased mortality. GW Gutted weight is the weight of harvested ! sh after the entrails have been removed.

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OUR OPERATIONS

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Smolt: Stable and high quality

Måsøval currently owns two smolt facilities based on " ow-through, with a total production permit of 5.2 million smolts per year. The company has historically been a stable supplier of high quality smolt. Måsøval’s smolt operations are based on stable and strong expertise, which is an important reason behind the good results we have achieved. In 2020, the facilities delivered 4.74 million smolts with an average weight of 124.3 grams, of which 2.98 million was delivered internally, while the rest went to other farmers. The commitments to deliver smolt to external parties expire at the end of 2022, which further strengthens Måsøval’s basis for meeting the company’s growth ambitions. Måsøval Sette ! sk has an ongoing case with the Norwegian Water Resources and Energy Directorate (NVE) about enabling access to the water source for wild anadromous ! sh at one of the smolt facilities for anadromous ! sh. Regardless of the outcome, Måsøval has secured agreements with external suppliers to safeguard future smolt requirements. 2020 was a good production year, where we yet again reaped the rewards of a long-term and focused work on water quality, mortality, and growth. For example, we have succeeded

in implementing new measures for water treatment, and have thereby prevented any serious incidents connected to water quality from occurring. In 2020, the survival rate throughout the entire smolt ! sh phase was 95.9%, and we have had no outbreaks of infectious viruses or bacterial diseases. Stable biological performance is a testament to our focused e " orts on ! sh health in the smolt phase has given direct results on land, and indirect results at sea through increased smolt quality. In order to meet the increased demand for smolt and strategic changes in the release pattern, it’s important for us to continue the good collaboration we have with our external smolt suppliers: Trøndersmolt and Nekton Sette ! sk. These facilities use RAS technology, and thereby provide increased & exibility for smolt production in terms of time of release and smolt size. In sum, we can see that the company is well- positioned to realise Måsøval’s smolt strategy and growth ambitions in the years ahead.

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OUR OPERATIONS

Farming: The biggest volume ever

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In 2020, Måsøval achieved the highest production volume ever recorded in the company’s history. We are thereby carrying on the positive development the company has had in terms of growth and survival in recent years,

and expect continued progress in 2021. The company’s purchase of a further 2 000 tonnes of production capacity in 2020 has to a large extent already been exploited, and we expect full exploitation in the second half of 2021.

16 000

32 000

14 000

27 000

12 000

22 000

10 000

17 000

8 000

12 000

6 000

7 000

4 000

2 000

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

AquaSemi development, allocated

Måsøval

AquaGen Pure Farming Guri Kunna Aqua Semi development, in use

2020 OPERATIONAL HIGHLIGHTS:

Orholmen Established production in PO5 – new site at Orholmen, Aukra. 10 000 First generation with more than 10 000 tonnes production (spring ’19).

1 year Fish harvest d in the same year as being released (spring ’20). 92.8% 2.8% survival rate for the year. Frøya Handled a demanding lice situation in Q3 in Frøya Sør.

16 253 Harvest volume of 16 253 tonnes harvested weight.

Results Good biological and opera ional performance has yielded good results.

43

OUR OPERATIONS

44

Sites: Attractive areas

The company currently has 41 340 tonnes MAB at its sites, and is thus well- positioned to maintain both current production capacity and meet future growth ambitions. Good sites are a critical factor to successful salmon farming, both in terms of growth potential and biological and operational control. Måsøval’s portfolio of sites are in

places that are considered to be the most attractive salmon farming areas in the world. In line with the strong growth, Måsøval is continuously working to further improve existing sites and acquire new high quality properties. Dedicated resources have been set aside for these e " orts in the company.

MÅSØVAL SITES

PO

ZONE

SITE

MAB 2021

NUMBER OF NET PENS

6 6 6 6 6 6 5 6 6

Frøya Nord Frøya Nord Frøya Nord SUM V 21 Frøya Øst Frøya Øst SUM V 22 Frøya Sør Frøya Sør Frøya Sør SUM H 21 Smøla Aukra

Fjølværet Langøya Flatøya

3 900 2 340 3 120 9 360 3 120 3 900 3 120 3 120 13 260 4 680 3 120 1 560 9 360 3 120 2 340 1 560 7 020 2 340 41 340

10

8 6

24

Bukkholmen

8

Lamøya

11

Hårkaillbåen Orholman

8

10 37 12

Espnestaren

Ilsøya 2

9

Fagerholmen Måøydraget

1

6

8

30

6 6 6

Nordmøre Sør Nordmøre Sør Nordmøre Sør SUM H 22 Hemnfjorden

Kattholmen

8 8

Or

Gaustad

10 26

6

Kistvika

8

SUM ALL

125

45

OUR OPERATIONS

46

Service: Always prepared!

Måsøval’s strategy is to have a dedicated standby function for service and technical services. This increases our preparedness and improves biological safety with competitive pro ! tability and capacity. In recent years, the service department has gone from being purely technical to also including wellboat services, maintenance vessels and delousing capacity. Together with solid expertise and long experience, this allows Måsøval to deliver high-quality support functions on its own. Establishing a dedicated service department has improved our ability to handle day-to-day operations and resolve biological challenges at short notice, at the same time as control of the & eet contributes to good biosafety over time. The department has always proven to be competitive in terms of both cost and quality, and is increasingly in demand as a supplier of services to external customers. As of 2020, the department had 14 employees, divided among the technical department, the service boat, and the delousing unit. In addition, a wellboat and crew have been chartered on a long-term contract. It is expected that the number of employees and the size of the & eet will increase as demand increases in the wake of the expected growth

in the group and the overall industry. The company has a strong focus on continuing to develop the service capacity in line with future growth. In March 2021, an agreement was entered into to acquire Stokkøy Skjell AS, following a good, long-term collaboration. The acquisition will strategically strengthen the service department. In addition, we have begun construction on a new base for the technical department, and will take delivery of a service vessel that is well-suited to bigger operations. ADMINISTRATION AND STAFF # AT YOUR SERVICE The group responsibility for ! sh health, employee health, safety, environment, quality, development, ! nance, IT/digitalisation, sales and logistics sits with the administration and sta " . The administration’s most important duty is to support the operations organisation in achieving the company’s operational goals and to pave the way for pro ! table growth with good health for both ! sh and employees. The administration has been recruited with a view to securing a good combination of expertise from both academia and practical ! sh farming. The common denominator is extensive knowledge of Måsøval’s core activities, systematic work and the ability to get things done.

47

48

OUR OPERATIONS

Internal Development

In 2020, we increased focus on administration of the project portfolio. At the same time, we have completed several projects with good results, and transferred them to the line. One of the most important projects is ‘Optiprod’, which has contributed to improved biological control. Another is ‘New sites’, which has secured us the approval of four new sites – one of which we started using in 2020. In addition, we have had greater focus on traditional IT operations, with a focus on improved reliability, IT security, and upgrades of our administrative systems. To support our growth we have started the digitalisation of our operations, including automatic lice counting, environmental sensors, and a new data platform.

ORGANISATIONAL DEVELOPMENT Måsøval has in recent years been working systematically with management and organisational development. We have conducted several gatherings for both operations managers and administrative sta " to support the development of the company. The annual employee survey is an important tool in further developing the organisation and taking care of our employees. In addition, the internal recruitment e " orts have paid o " : 4 of 7 members of the management group – as well as several operations managers – were recruited from inside the company.

49

50

SUSTAINABILITY

We’re working in harmony with nature! The ocean is a precious, common

MORE PEOPLE, MORE FOOD The Norwegian aquaculture industry envisions a ! ve-fold increase in production in the next 40 years. Måsøval wants to be a sustainable part of this growth. With a growing population to feed, the ocean – covering 70% of the globe – o " ers a key opportunity. The UN recognizes the ocean as a driver for global systems that ultimately make the Earth inhabitable for humankind, making careful management of the ocean a key feature of a sustainable future. Måsøval is well aware of our responsibility as a producer of food from the ocean and how our production touches several of the sustainability goals de ! ned by the UN. Although we have not yet drawn up our own key sustainability goals, we have already implemented numerous measures to increase sustainability in Måsøval and the aquaculture industry.

resource that we need to manage with great respect. That’s why we’re actively working to ensure that we have the smallest possible footprint at every stage of food production. Måsøval has namely set itself the goal of being a leading contributor to the sustainable development of the aquaculture industry. Frøya lies on the coast of Central Norway, where the conditions nature created are optimal for producing Atlantic salmon. Here, the salmon greatly bene ! t from clean, cold and oxygen-rich water from the Gulf Stream and the Norwegian Sea. ”We’re simply borrowing the resources that we’re lucky enough to have available here on the coast, and it’s our goal to leave behind the smallest possible footprint for those who come after us. At the same time, the world needs more sustainable protein, and salmon is one of the most resource-e " ective sources we can produce,” says Asle Rønning, CEO of Måsøval.

51

SUSTAINABILITY

Our ESG initiatives

Måsøval has been a proud producer of healthy, sustainable, Norwegian salmon for years. Our production sites are located on the Norwegian coast. Each site has been chosen for its excellent environmental conditions, ensuring that our salmon can thrive with minimal impact on surrounding ecosystems. The ocean is not ours to own. It’s a precious, common resource that we must manage with great respect.We have an obligation to safeguard the livelihoods of coastal inhabitants and ensure that our presence does not limit opportunities for future generations. That’s why we are working actively to keep our footprint as small as possible, throughout the production chain. At the same time, we are continuously working to ensure that our workers have good working conditions and that our wider community can

thrive. Our ! nancial success also has signi ! cant ripple e " ects far beyond our own activities. ENVIRONMENTAL INITIATIVES It’s well documented that farmed salmon is one of the most e " ective sources of animal protein with regards to climate footprint, feed conversion rate, edible yield and use of by- products. Every form of food production has an impact on the surrounding biodiversity and environment. Our responsibility is to reduce the impact to a minimum. Our focus has been on reducing food waste, reducing emissions from our facilities, reducing the impact on wild salmonids through sea lice control and preventing escapes, among many other active measures.

52

SOCIAL INITIATIVES Måsøval has always enjoyed an excellent reputation as a responsible employer and contributor to the local community. HSE is very important to us, both at sea and in the boardroom. This focus can be seen through our low sickness absence rates and a low incidence of serious injuries. People who work at Måsøval tend to stay in their job. We treat our local communities with great respect and contribute every year to local projects and development. Our main focus is on children’s activities, and educational and cultural initiatives. Our corporate taxes and employer contributions also contribute millions of kroners a year to Norwegian society by helping to fund its generous welfare system. GOVERNANCE For 48 years, Måsøval has remained a family business with a close relationship between

owners and employees. This makes the company able to rapidly adapt to new changes and developments. The Norwegian aquaculture industry is strictly regulated by the authorities. Our ethical guidelines state that we abide by applicable laws and regulations, and we shall always be reliable, responsible, honest and fair. In fact, one of Måsøval’s four core values is “Responsible”. THE ROAD AHEAD Although Norwegian farmed salmon is well- documented as a sustainable food source, we shall continue to improve our ESG initiative e " orts. Måsøval is starting a process in 2021 to systematically review and map our impact areas to identify further improvement measures on sustainability. This will ultimately lead to transparent KPIs that can be measured and shared with stakeholders.

WORLD CAPTURE FISHERIES AND AQUACULTURE PRODUCTION

250

200

150

100

50

0

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

CAPTURE FISHERIES

AQUACULTURE

SOURCE: FAO

GLOBAL CAPTURE AND AQUACULTURE PRODUCTION GLOBAL CAPTURE AND AQUACULTURE PRODUCTION

COMPARISON WITH EUROPEAN MEAT PRODUCTS COMPARISONWITH EUROPEAN MEAT PRODUCTS

1.1

1

0,9

46 % 2018

54 %

53 % 2030

47 %

0,8

0,7

CAPTURE

0,6

AQUACULTURE

0,5

0,4

0,3

0,2

52 % 2018

48 %

59% 2030

41 %

0,1

0

FROM CAPTUR FISHERIESE

EUROPEAN PORK

EUROPEAN BEEF

EUROPEAN CHICKEN

SALMON COD

HADDOCK POLLOCK HERRING MACKEREL

SHRIMP

KING CRAB

FROM AQUACULTURE

53

54

SUSTAINABILITY

An electric pioneer o ! shore

Måsøval is also a true pioneer when it comes to green energy. We were the ! rst ! sh farmer in Norway to connect all of our o % shore facilities to onshore power. To achieve this, we lay a ! ve-kilometre long power cable, and invested over NOK 10 million in this green project. The facilities were previously powered by noisy and polluting diesel generators. Just one generator alone used 70 000 litres of diesel a year. Enova provided NOK 5 million in support for the project. The energy savings for society corresponds to the entire electricity consumption of 210 households.

A BETTER ENVIRONMENT, IN EVERY WAY Investing in onshore power not only provides a smaller climate footprint. It also improves the working environment for everyone who is working near noisy and polluting generators. They can now enjoy both fresh air and the sounds of nature. Måsøval measures and reports its entire energy consumption, including everything from electrical power and fuel to travel and transport. It’s important for us to be as energy-e # cient as possible and continually develop in a positive direction.

55

Healthy salmon grows faster

56

FISH HEALTH AND WELFARE

In Måsøval, we’re proud of the work we do to ensure that salmon and cleaner ! sh have good ! sh welfare. Good biological control is our mantra, and it makes up the very heart of our operations. When we achieve good biological control and o " er good living conditions for our ! sh, we end up with healthy salmon that can thrive throughout its lifespan. This is decisive to securing good pro ! tability, and for enabling us to safeguard our role as a sustainable food producer. In Måsøval, ! sh health is everyone’s responsibility, and each individual employee contributes to achieve and maintain good ! sh welfare from roe to harvest. In order to succeed, we cooperate closely with several of the best academic environments in Norway. We actively contribute to research with capital and expertise, and have a strong focus on ! nding technological solutions that contribute to better biological control. VERY HIGH SURVIVAL RATES Måsøval’s salmon production is characterized by a high survival rate, very good growth, and good disease control. In the last few years prior to 2021, we have reduced mortality after sea transfer to under one-third, and increased the survival rate for smolt to over 95%. When we compare ourselves with the Norwegian Veterinary Institute’s ! gures for average mortality in the aquaculture industry, our performance is very impressive! The growth rate has improved signi ! cantly in recent years, a trend that has continued throughout 2020. Since 2016, the growth rate measured in TGC has increased from 2.55 to approximately 3.3. Increased growth increases production

e # ciency and leads to a shorter time period in open net pens. The latter contributes to reducing the risk of disease, increasing ! sh welfare, and reducing the risk of negative impacts on the aquatic ecosystems of which our production is a part. INTERDISCIPLINARY BIOLOGY MEETING Fish health e " orts in Måsøval are – and must be – integrated into the entire value chain. Every week, all of the company’s operations units and professional sta " gather to attend an interdisciplinary biology meeting, where we present status, and make any decisions that are required to secure good biological control. In addition, we have a strong focus on identifying the most important biological factors the company is facing at any given time, whether causes of death, capacity challenges or environmental or technical production conditions. We address these challenges at every stage of development, so that our resources are constantly focused on areas where they are the most e " ective. Good ! sh health requires good environmental conditions, whether they be environmental conditions at sea-based farms or water quality at smolt facilities. In Måsøval, we work in a focused manner to further develop and optimise our facilities portfolio. This has led to increased production potential and reduced risk in recent years. GOOD ENVIRONMENT # HEALTHY SALMON

57

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