Bakkafrost P/f

Investor Presentation • May 6, 2024

HIGHLIGHTS Q1 24 (Q1 23)

HIGHLIGHTS Q1 24 (Q1 23)
	 Revenue of DKK 2,206 million (DKK 2,050 million)
Revenues and Operational EBIT	 Operational EBIT* of DKK 710 million (DKK 565 million)
	 Harvest in the Faroe Islands: 14,294 tgw (11,005 tgw)
	 Harvest in Scotland: 7,263 tgw (8,093 tgw)
Operation	 Feed sales: 27,046 tonnes (22,287 tonnes)
	 External fish oil sales: 4,037 tonnes (5,576 tonnes)
	 Sourcing of marine raw material: 136,874 tonnes (156,015 tonnes)
Cash Flow	 Cash flow from operations of DKK 676 million (DKK 573 million)
Segments	 Positive operational EBIT from all segments except Freshwater Scotland DKK -34 million (DKK 14 million) and Sales and other DKK -2 million (DKK 16 million)
Dividend	 Dividend of DKK 8.70 per share for 2023 to be paid out around 21 May 2024
	) EBIT aligned for fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax *) Including internal sales of 26,875 tonnes (21,809 tonnes)

0.5% increased YoY prices in EUR in Q1 2024

Increased large-fish premium

Reduced availability of large superior fish for the spot market

SALMON MARKETS, SOLD QUANTITY

EU/UK: 4% consumption increase

2% drop in US consumption

Japan and ASEAN

• Higher airfreight cost due to war in Ukraine
• Consumer price sensitivity in Japan

Salmon markets, sold quantity (head on gutted weight)

					HEALTHY LIVING
SALMON MARKETS, SOLD QUANTITY
EU/UK: 4% consumption increase		Salmon markets, sold quantity (head on gutted weight)
 Good demand, high availability of fillets from Norway		Estimated volumes Q1 comparison		Estimated volumes	FY comparison
	Markets	Q1 2024 E Q1 2023	Volume %	FY 2023 FY 2022	Volume %
	EU+UK	229.000 220.300	8.700 4%	1.084.100 1.137.200	-53.100 -5%
2% drop in US consumption	USA	140.500 144.000	-3.500 -2%	587.100 585.800	1.300 0%
	Russia	12.000 13.400	-1.400 -10%	61.200 51.800	9.400 18%
	Japan	10.500 11.400	-900 -8%	44.700 55.000	-10.300 -19%
		31.800 31.000	800 3%	134.500 102.700	31.800 31%
 Increased price sensitivity, high availability of substitutes	Greater China
	ASEAN	18.400 19.000	-600 -3%	70.400 83.900	-13.500 -16%
	Latin America	44.000 42.800	1.200 3%	184.000 179.100	4.900 3%
	Ukraine	3.000 5.000	-2.000 -40%	18.600 18.800	-200 -1%
Good demand from China and Latin America	Other markets	68.000 67.100	900 1%	298.700 329.600	-30.900 -9%
	Total all markets	557.200 554.000	3.200 0,6 %	2.483.300 2.543.900	-60.600 -2,4 %
 Strong price resilience
	Comments:
Japan and ASEAN		EU+UK incl. estimates for both European Union (Post-Brexit) & United Kingdom. Greater China = China / Hong Kong / Taiwan (incl. estimated re-export from Vietnam & Thailand)

Comments:

EU+UK incl. estimates for both European Union (Post-Brexit) & United Kingdom. Greater China = China / Hong Kong / Taiwan (incl. estimated re-export from Vietnam & Thailand) ASEAN = Association of Southeast Asian Nations (estimated re-export from Vietnam & Thailand subtracted) Latin America (including both Mexico and Caribbean + domestic consumption in Chile) All figures above are in tonnes hog, and are rounded to the nearest 100 tonnes.

Source: Kontali

GLOBAL HARVESTED VOLUME DROPPED 5% Iceland: Lower than expected volumes

5% drop in global harvest volume

3% drop in European harvest volumes

-

-

10% drop in American harvest

• Chile: Low incoming biomass and algae blooms in Newfoundland (Canada)

					HEALTHY LIVING
	GLOBAL HARVESTED VOLUME DROPPED 5%
	5% drop in global harvest volume	Supply Development	Q1 2024		Q1 2023 Change %
	1% increase when including inventory movements	Norway UK Faroes	271 33 21	286 32 17	-5,4 % 3,3 % 23,0 %
	3% drop in European harvest volumes	Iceland Ireland	11 3	11 3	2,4 % 6,5 %
 Norway:	Challenging biological situation and cold temperatures	Total Europe	340	350	-2,9 %
 Faroes:	Growth after period of building biomass	Chile	140	167	-16,2 %
 Scotland:	Both periods impacted by tough preceding autums	Canada USA	26 3	17 4	57,8 % -20,9 %
 Iceland:	Lower than expected volumes	Total Americas	169	187	-9,7 %
		Other Total (Harvested quantity)	27 536	26 563	3,8 % -4,8 %
	10% drop in American harvest	Inventory movements	21	-9	-335,6 %
Chile: 	Low incoming biomass and algae blooms	Total (Sold Quantity)	557	554	0,6 %
 Americas:	Rebound from very low levels and introduction of new capacity in Newfoundland (Canada)				Source: Kontali

Frozen inventories reduced in the quarter

SUMMARY OF Q1 2024 MARKETS & SALES FINANCE & ESG OPERATIONS OUTLOOK

APPENDIX

GROUP PROFIT AND LOSS HIGHER REVENUE AND OPERATIONAL EBIT

GROUP PROFIT AND LOSS	HIGHER REVENUE AND OPERATIONAL EBIT			HEALTHY LIVING
Q1 2023	Q1 2024	(DKK million)	Q1 24	Q1 23
Revenue (mDKK)		Operating revenue	2,206	2,050
2,050 8%	2,206	Operational EBITDA*	879	714
		Operational EBIT*	710	565
Operational EBIT (mDKK)		Fair value adjustment of biological assets	-70	54
565 26%	710	Onerous contracts	0	0
Fair value of biomass (mDKK)		Income from associates	0	24
	-70	Revenue tax	-112	-38
		EBIT	528	605
Profit after tax (mDKK)		Net Financial items	-46	-18
-14%	401	EBT	482	586
		Taxes	-81	-119
		Profit for the period	401	467

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE**

*) Operational EBIT is EBIT before fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax **) Earnings per share adjusted for fair value of biomass, onerous contracts provisions and tax and these.

BALANCE SHEET

	(DKK million)	Q1 24	End 2023
	Intangible assets	4,512	4,509
6,312	Property, plant and equipment	6,312	6,220
	Right of use assets	391	413
	Financial assets	300	289
	Deferred tax assets	513	512
	Biological assets	3,316	3,336
	Inventory	1,115	1,149
	Financial derivatives	0	374
	Receivables	1,058	850
	Other receivables	174	150
	Cash and cash equivalents	572	412
	Total Assets	18,262	17,841
	Equity	11,320	10,866
	Deferred tax and other taxes	2,034	1,953
	Long-term interest-bearing debt	3,753	3,944
	Long-term leasing debt	307	331
	Short-term leasing debt	60	66
	Accounts and other payables	788	681

Total Equity and Liabilities 18,262 17,841

CASH FLOW

(DKK million)	Q1 24	Q1 23
Cash flow from operations	676	573
Cash flow from investments	-238	-203
Cash flow from financing	-278	-519
Net change in cash	161	-150
Cash at the end of the period	572	570
Undrawn facilities	2,857	2,999

NET INTEREST-BEARING DEBT (NIBD) NIBD DECREASED DURING Q1 2024

NIBD was increased by:

-

NIBD was decreased by:

Financing end Q1 2024

• NIBD: DKK 3,180 million
• Bank facilities of EUR 722 million and an accordion of EUR 150 million.
• Undrawn credit facilities: DKK 2,204 million

HEALTHY LIVING

ESG UPDATE

SUMMARY OF Q1 2024

MARKETS & SALES

FINANCE & ESG

OPERATIONS

OUTLOOK

APPENDIX

PERFORMANCE PER REGION STRONG QUARTER IN FAROE ISLANDS

PERFORMANCE PER REGION							HEALTHY LIVING
STRONG QUARTER IN FAROE ISLANDS
		Q1 2024			Q1 2023
DKK 1,000	Scotland	Faroe Islands*	Group	Scotland	Faroe Islands*	Group
Total operating revenues	612.491	1.593.735	2.206.226	708.420	1.341.461	2.049.881
Depreciation and amortization	-39.174	-124.769	-163.943	-61.115	-83.049	-144.164
Operating expenses	-534.161	-798.413	-1.332.574	-492.425	-848.004	-1.340.429
Operational EBIT	39.156	670.553	709.709	154.880	410.408	565.288
Operational EBITDA	78.330	795.322	873.652	215.995	493.457	709.452
Volume tonnes	7.263	14.294	21.557	8.093	11.005	19.098
Operational EBIT/KG	5,39	46,91	32,92	19,14	37,29	29,60
- of which FOF	0,00	12,37	8,20	0,00	11,12	6,41
- of which Freshwater	-4,72	1,50	-0,59	1,75	2,23	2,03
- of which Farming	3,35	33,03	23,03	15,14	20,72	18,35
- of which Services	-0,11	1,90	1,22	-0,82	1,37	0,44
- of which Sales & Other	3,90	-2,14	-0,11	2,88	-0,65	0,85
- of which Eliminations	2,97	0,25	1,17	0,19	2,50	1,52
*included a marginal contribution from US, DK, UK and FR
							17

FOF (FISHMEAL, OIL AND FEED) STRONG FEED SALES AND HIGH SOURCING

Source: Holtermann

HEALTHY LIVING

	Volumes	Q/Q change	Q1 24	Q1 23
50.000	Marine raw material sourced	-12%	136,874	156,015
40.000	Feed sold (tonnes)*	21%	27,046	22,287
Feed sale 30.000	Fishmeal sold external (tonnes)	-5%	13,028	13,775
20.000	Fishoil sold external (tonnes)	-28%	4,037	5,576

*Including internal sales, corresponding to 99% of feed volumes in Q1 2024 (Q1 2023: 98%)

0	Margin
	Operational EBIT	+45%	177	122
	Operational EBIT margin	+7%	24%	17%

Sourcing of raw material (tonnes)

RAMPING UP NEW CAPACITY FROM 2023

Focus on producing consistent size & quality

			HEALTHY LIVING
Volumes	Q/Q change	Q1 24	Q1 23
Released number of smolt (million)	0%	2.1	2.1

Margin
Operational EBIT (NOK/kg)	-6%	38.36	40.75
Operational EBIT margin	-4%	22%	26%

FRESHWATER – FAROE ISLANDS CONSTRUCTION STARTED OF NEW HATCHERY AT SKÁLAVÍK • Same design as Glyvradal and Applecross • 3,500 tonnes capacity • Built in phases to allow early start of operation • Finished late 2026 • Annual production capacity in the Faroe

Construction started of Skálavík hatchery

-

-

Total FO hatchery capacity will be 12,000 tonnes

Islands to exceed 24 million smolt of 500g

FRESHWATER – SCOTLAND

Applecross hatchery:

• Ramping up production • Close to all smolt (8.0 million) delivered from Applecross in 2024 at around 165g on average • Increasing production in 2025 with AP 5&6 (>11m) • Self-sufficiency of smolt
  • • Q1: 121g
    • Q2: 111g
    • Q3: 168g
    • Q4: 200g

Smolt strategy

-

SCOTLAND WITH SOME START-UP CHALLENGES
	Volumes	Q/Q	Q1 24
Applecross hatchery:	Released number of smolt (million)	change -6%	1.6
FRESHWATER – APPLECROSS RAMPING UP - • Ramping up production	Average weight (g)	+9%	121
• Close to all smolt (8.0 million) delivered from				HEALTHY LIVING Q1 23 1.7 111

Margin
Operational EBIT (NOK/kg)	n/a	-274.00	111.27
Operational EBIT margin	-148%	-112%	36%
Hatchery expansion, Scotland
Applecross - Construction 7m smolt at 500g 29,300m³ capacity	Fairlie - Planning 8m smolt at 500g 32,300m³ capacity
			21

Hatchery expansion, Scotland

29,300m³ capacity

8m smolt at 500g 32,300m³ capacity

FARMING – FAROE ISLANDS POSTPONED HARVEST TO OPTIMISE VALUE • Focus on growing larger fish • Increasing harvest volumes • All-time low sea lice levels • Good Growth rate

Good biological development

-

-

			HEALTHY LIVING
Volumes	Q/Q change	Q1 24	Q1 23
Total harvest volume (tonnes HOG)	+30%	14,294	11,005

Margin
Operational EBIT (NOK/kg)	+65%	50.56	30.56
Operational EBIT margin	12%	40%	28%

FARMING – SCOTLAND PREPARING FOR Q2 2024 HARVEST • Biology improving • Minimizing harvest to let the fish grow • Low sea lice levels

Comments

-

-

PREPARING FOR Q2 2024 HARVEST		HEALTHY LIVING
Comments	Volumes	Q/Q change	Q1 24	Q1 23
	Total harvest volume (tonnes HOG)	-10%	7,263	8,093
• Biology improving • Minimizing harvest to let the fish grow	Average harvest weight (kg)	-13%	4.7	5.3
• Sea temperatures higher than the same period in 2023
• Low sea lice levels	Margin
• Preparing to harvest larger fish in Q2 2024	Operational EBIT (NOK/kg)	-77%	5.13	22.33

SERVICES EFFICIENT SEA LICE MITIGATION

Services provided:

• Fish transportation
• Treatments
• Farming Support
• Harvest & Packaging
• Waste-to-biogas production

Low sea lice numbers across both the Faroese and Scottish farming sites

• Good capacity with gentle highly effective treatment capacities

Margin	Q/Q change	Q1 24	Q1 23
Operational EBIT (NOK/kg)	+183%	1.87	0.66
Operational EBIT margin	+6%	10%	4%

All-time low sea lice levels

SALES & OTHER

Services provided:

• Sales & Marketing
• Freight & Logistics
• Value added processing (VAP)
• Reduced contract share to only 9% of the 2024 harvest volume • VAP share of 23% in Q1 2024 vs 46% in Q1 2023

SALES & OTHER LESS VOLUMES FOR VAP - GROWING SALE TO THE US MARKET				HEALTHY LIVING
Services provided:	Volumes	Q/Q change	Q1 24	Q1 23
• Sales & Marketing	Volume transferred to VAP (tgw)	-35%	3,296	5,098

Margin
Operational EBIT (NOK/kg)	-113%	-0.16	1.25
Operational EBIT margin	-1%	0%	1%

OUTLOOK LOW UPPLY GROWTH

- Biological uncertainty in Norway

• Assuming slight improvement in H2 2024 and 2025

General reduction in Americas driven by Chile

• Lower smolt release (regulatory enforcement)
• Assuming continued good biological performance

Source: Kontali

OUTLOOK GROWING VOLUME

Contracts

• For 2024, Bakkafrost has signed contracts for around 9% of the total expected harvest volumes

Fishmeal, Oil and Feed

• Continued high production volumes of fishmeal and normalisation of fish oil production volumes expected

Headlines from CMD on 6 June 2023

CAPEX: 6,3bn DKK (2024-2028)

• 2028: 165,000kt harvest volume / 200,000kt capacity
• FO: Sustainable growth (site optimisation & new technology) Cost-efficient (repurposed) broodstock facilities. Hatchery capacity of 24m smolt @500g
• SCT: Build hatchery capacity of 15m smolt @500g New processing facility Improved cost-efficiency in vessel operation

LARGE HIGH-QUALITY SMOLT ARE THE KEY TO GROWTH AND IMPROVEMENT

LARGE SMOLT STRATEGY DELIVERING LARGE HEALTHY SMOLT

HEALTHY LIVING

8m smolt at 500g 32,300m³ capacity

29,300m³ capacity

165,000 TONNES HARVEST IN 2028, FAROE ISLANDS AND SCOTLAND COMBINED

BAKKAFROST'S	NEW SEGMENTS		HEALTHY LIVING
	Previous	segments
New segments:
• FOF
• Freshwater FO
• Freshwater SCT
• Farming FO
• Farming SCT
• Services

New segments:

-

-

-

SEGMENT OVERVIEW VOLUMES, MARGINS AND KEY RATIOS

FOF	Freshwater	Farming		Services		Sales & Other
Q1 2024: Revenue = 739M Internal Feed sale = 26,875t External Meal sale = 171t External Fish Oil sale = 4,037t	Q1 2024: Revenue Smolt transferred Average Weight	Q1 2024: Revenue = 98M Harvest Volume = 2.1M = 410g Average Weight	= 1,168M = 14,294t = 5.43kg	Q1 2024: Revenue Energy produced = 5.7 GwH	= 259M	Q1 2024: Revenue Portion in VAP	= 2,850M = 23%
OP EBIT = 177M OP EBIT % = 24%	OP EBIT OP EBIT / KG OP EBIT %	OP EBIT = 22M OP EBIT / KG = 25.06 = 22% OP EBIT %	= 472M = 33.03 = 40%	OP EBIT OP EBIT / KG OP EBIT %	= 26M = 1.22 = 10%	OP EBIT OP EBIT / KG OP EBIT %	= (2.3M) = (0.11) = 0%
Key Ratios: OP EBIT / PPE = 49.8% Debt / EBITDA = 0.63x	Key Ratios: OP EBIT / PPE Debt / EBITDA	Key Ratios: = 8.5% OP EBIT / PPE = 2.39x Debt / EBITDA	= 91.2% = 0.36x	Key Ratios: OP EBIT / PPE Debt / EBITDA	= 4.6% = 3.55x	Key Ratios: OP EBIT / PPE Debt / EBITDA	= 14.5% = 2.54x
	Volumes: Revenue Smolt transferred Average Weight	Volumes: Revenue = 31M Harvest Volume = 1.6M Average Weight = 121g	= 537M = 7,263t = 4.68kg			Market Split – Sales: Western Europe North America Asia	= 62% = 21% = 13%
	OP EBIT OP EBIT / KG OP EBIT %	OP EBIT = (34M) OP EBIT / KG = (178.98) OP EBIT % = (-112%)	= 24M = 3.35 = 5%			Eastern Europe Rest of world	= 3% = 1%
 Revenue, EBIT & EBITDA are in DKK  Key Ratios based on 12 month rolling  PPE at fair value	Key Ratios: OP EBIT / PPE Debt / EBITDA	Key Ratios: = (5.7%) OP EBIT / PPE = (13.39x) Debt / EBITDA	= (31.2%) = (9.29x)

DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN

-

-

								HEALTHY LIVING
DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN
Expected supply growth in 2024			Global Supply of Atlantic Salmon (head on gutted –			HOG)
			2019	2020	2021	2022	2023E	2024E
 3% increase in Global supply*	Norway		1.198	1.226	1.383	1.359	1.329	1.345
 4% increase in supply* from Europe	UK Ireland		171 14	160 14	179 14	145 15	137 13	151 15
	Iceland Faroes		22 78	27 72	35 96	42 89	29 80	45 94
 no supply growth from the Americas	Total Europe		1.484	1.499	1.707	1.649	1.589	1.650
	Chile		601	657	638	649	665	661
* Including expected inventory movements	Canada		123	123	126	120	99	106
	USA Total Americas		19 743	18 798	17 781	18 787	17 781	16 783
	Others		71	91	109	109	114	123
	Total (Sold Quantity)		2.298	2.388	2.597	2.545	2.484	2.556
	Supply growth - Global		6%	4%	9%	-2%	-2%	3%
	Supply growth - Europe		10%	1%	14%	-3%	-4%	4%
	Supply growth - Americas		0%	7%	-2%	1%	-1%	0%
			Salmon Markets (head on gutted –			HOG)
	EU+UK	2019 1.017	2020 1.073		2021 1.158	2022 1.137	2023E 1.084	2024E 1.131
Comments: All figures are in hog-equivalents and thousand tonnes.	USA	471	506		571	586	587	586
Figures represents sold quantity of Atlantic Salmon from each producing country	Japan	53	64		66	55	45	44
Source: Kontali	Russia Others	78 678	79 666		86 717	52 714	61 706	58 738
	Total (Sold Quantity)	2.298	2.388		2.597	2.544	2.483	2.556
								35

	2019	2020	2021	2022	2023 E	2024E
EU+UK	1.017	1.073	1.158	1.137	1.084	1.131
USA	471	506	571	586	587	586
Japan	53	64	66	55	45	ব
Russia	78	79	86	52	61	58
Others	678	666	717	714	706	738
Total (Sold Quantity)	2.298	2.388	2.597	2.544	2.483	2.556

Q1 2024 MARKET ENVIRONMENT

-

-

MARKET CURRENCY			Q1 2024 Q1 Q1 2023 Change %
Nasdaq Norway (EUR)	9.75	9.70	0,5 %
UB North East US 14-16lb HOG (USD per kg)	10,02	12,68	-20,9 %
DKK			Q1 2024 Q1 Q1 2023 Change %
Nasdaq Norway	72.68	72.19	0.7 %

Source: Kontali

Nasdaq Norway (EUR) Nasdaq Norway (DKK)

Q1 2024 PRICES

HIGH DOWNGRADE SHARE IN NORWAY IMPACTED REFERENCE PRICES

Nasdaq spot price reflecting marginal pricing per week

Statistics Norway (SSB) publish average price for all whole fish sold per week

Incorporates bilateral contracts of variable duration

"Production grade" fish excluded from both references

SSB price exceeded Nasdaq in Q1 2024

Sign of limited "superior grade" fish available

Slight increase in Fish Pool forward prices

• Expectation of tight supply in Q2 2024
• Limited volume traded
• Clearing being transferred from Nasdaq to Euronext

Source: Kontali

DEVELOPMENT PER QUARTER

(mDKK)		Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Revenue		1,639	1,684	1,867	1,940	2,050	1,670	1,859	1,562	2,206
Operational EBIT		418	587	325	376	565	353	269	356	710
Profit/Loss		405	845	249	-154	467	-123	219	392	401
Harvest FO (tgw)		17,459	13,101	16,850	19,276	11,005	8,658	16,740	16,005	14,294
Harvest SCT (tgw)		3,973	6,646	8,100	5,198	8,093	7,343	4,100	1,062	7,263
Equity ratio		64%	65%	64%	62%	64%	61%	61%	61%	62%
NIBD		2,192	2,267	2,427	2,664	2,357	2,911	3,045	3,533	3,180
100 50 0 -50 -100 -150 -200 -250 -300	50 40 30 20 10 0 -10			7.000 6.000 5.000 4.000 3.000 2.000 1.000 0				1.600 1.400 1.200 1.000 800 600 400 200 0
Freshwater FO Freshwater SCT YTD 2024 YTD 2023	Farming FO Farming SCT Services Sales & Other YTD 2024 YTD 2023

• Dividend payment equals 50% of adjusted EPS

Dividend

Dividend policy

DIVIDEND

-

• Generally, Bakkafrost shall pay a dividend to its shareholders
• A long-term goal is that 30–50% of adjusted EPS shall be paid out as a dividend

* Adjusted EPS is EPS adjusted for fair value adjustments of biomass and onerous contracts provisions

** Dividend and acquisition of treasury shares

*** Dividend is paid out the following year

OUR PILLARS AND VALUES

44

PERFORMANCE

BEST PRACTICES & WELL-INVESTED VALUE CHAIN DRIVES PERFORMANCE

HEALTHY LIVING

IMPROVEMENTS OF LARGE-SMOLT QUALITY, FAROES (2021G VS. 2020G)

VALUE CHAIN INSIGHT FARMING CYCLES GETTING SHORTER WITH LARGE HIGH-QUALITY SMOLT

~ 6.3BN PLANNED INVESTMENTS 2024-2028

REDUCE BIOLOGICAL RISK, IMPROVE EFFICIENCY AND INCREASE ORGANIC GROWTH

-

- Cost-efficient broodstock (repurposing old hatcheries)

• Increase feed capacity, including storage and logistics • Optimization of existing farming sites • Improved vessel capacity • Energy Transition • Harvest and processing plant • Site expansions • Vessel capacity for transport and treatment • Marine Site development
  • Offshore postponed

Scotland:

-

-