Bakkafrost P/f

Interim / Quarterly Report • Feb 20, 2024

INTERIM REPORT

Q4 2023 and the year 2023

Faroese Company Registration No. 1724 www.bakkafrost.com

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S l & O h t a e s e r .	9
O t l k . u o o	1 0
i k R s s .	1 2
f h i i d . E t t t R t P v e n s a e r e e p o r n g e r o	1 2
b h d h d f i h S t t t t M t t B D t t I t a e m e n y e a n a g e m e n a n e o a r o r e c o r s o n e n R t . e p o r	i e r m 1 3
l i d d C t I S t t t o n s o a e n c o m e a e m e n	1 4
l i d d f h i C t S t t t C I o n s o a e a e m e n o o m p r e e n s v e n c o m e .	1 4
l i d d f i i l i i C t S t t t F P t o n s o a e a e m e n o n a n c a o s o n .	1 5
C l i d d C h l S t F t t t o n s o a e a s o w a e m e n	1 6
i f i i C l d t d S t t t C h E t o n s o a e a e m e n o a n g e s n q u y .	1 7
h N t t t A t o e s o e c c o n s u	1 8
C t t o n a c s	2 5
d i A p p e n x .	2 6

Highlight

	Q 4	Q 4	YT D	YT D
DK K 1 00 0, 00 0 ,	20 23	20 22	20 23	20 22
INC OM E S TA TE ME NT
Gro - O rat ing up pe re ve nue	1, 56 2	1, 94 0	7, 14 1	7, 13 0
ion Gro - O rat al EB IT* up pe	35 6	37 6	1, 54 4	1, 70 5
Gro - E BIT up	55 0	-53	1, 32 0	1, 82 6
Gro - P rof it f the rio d up or pe	39 2	-15 4	95 5	1, 34 4
FO F - Op tin era g r ev en ue	96 6	79 1	3, 48 9	2, 43 3
tio FO F - Op l E BIT era na	23 9	10 5	79 1	41 1
tio l E FO F - Op BIT DA era na	24 5	11 1	81 8	43 7
FO F - Op tio l E BIT in era na m arg	25 %	13 %	23 %	17 %
tio l E in FO F - Op BIT DA era na m arg	25 %	14 %	23 %	18 %
shw tin Fre ate r F O - Op Rev era g en ue	18 7	16 1	58 6	48 0
shw tin Fre ate r F O - Op EB IT era g	52	52	15 7	18 8
shw tin in Fre ate r F O - Op EB IT M era g arg	28 %	32 %	27 %	39 %
shw tin / ( K) Fre ate r F O - Op KG DK **** era g	26 .75	34 .55	27 .95	37 .88
shw tin / ( K) **** Fre ate r F O - Op KG NO era g	41 .78	48 .26	42 .82	51 .39
shw ing Fre ate r S CT - O rat Re pe ve nue	26	37	14 2	12 4
shw ing Fre ate r S CT - O rat EB IT pe	-9	-8	9	-24
shw ing in Fre ate r S CT - O rat EB IT M pe arg	-35 %	-22 %	6%	-19 %
shw ing IT / ( K) Fre ate r S CT - O rat EB KG DK **** pe	-49 .44	-20 .60	8.7 5	-20 .24
shw ing IT / ( K) **** Fre ate r S CT - O rat EB KG NO pe	-77 .23	-28 .77	13 .41	-27 .46
mi ati Far FO - O Rev ng per ng en ue	90 9	1, 06 2	3, 31 2	4, 95 1
mi ati Far FO - O EB IT ng per ng	64	25 4	55 1	1, 51 5
mi ati in Far FO - O EB IT M ng per ng arg	7%	24 %	17 %	31 %
mi ati IT / ( K) Far FO - O EB KG DK ng per ng	4.0 1	13 .19	10 .51	22 .71
mi ati IT / ( K) Far FO - O EB KG NO ng per ng	6.2 7	18 .43	16 .10	30 .82
mi ati Far SCT - O Rev ng per ng en ue	50	27 3	1, 45 3	1, 47 0
mi ati Far SCT - O EB IT ng per ng	-48	-17 0	-15 5	-22 6
mi ati in Far SCT - O EB IT M ng per ng arg	-96 %	-62 %	-11 %	-15 %
mi ati IT / ( K) Far SCT - O EB KG DK ng per ng	-44 .97	-32 .64	-7. 53	-9. 46
mi ati IT / ( K) Far SCT - O EB KG NO ng per ng	-70 .24	-45 .60	-11 .53	-12 .83
vic ati Ser - O Rev es per ng en ue	19 8	20 4	78 3	79 3
vic ati Ser - O EB IT es per ng	13	1	44	15
vic ati in Ser - O EB IT M es per ng arg	7%	1%	6%	2%
vic ati IT / ( K) Ser - O EB KG DK es per ng	0.7 6	0.0 5	0.6 0	0.1 6
vic ati IT / ( K) Ser - O EB KG NO es per	1.1 8	0.0 6	0.9 1	0.2 2
ng
Sal the tin & O Op Rev es r - era en ue	2, 35 5	2, 38 5	9, 27 3	10 58 9
g Sal the tin & O EB IT	10 1	10 6	21 0	, -17 3
Op es r - era g Sal the tin in & O EB IT M	4%	4%	2%	-2%
Op es r - era g arg Sal the tin & O EB KG DK	5.9 4	4.3 3	2.8 8	-1. 90
IT / ( K) Op es r - era g Sal the tin
IT / ( K) & O Op EB KG NO es r - era g	9.2 7	6.0 5	4.4 1	-2. 58
K/ K ( e) NO DK ave rag	64 .02	71 .59	65 .28	73 .70

DK K 1 00 0, 00 0 ,	20 23	20 22	20 23	20 22
		0	0
FIN AN CIA L P OS ITI ON AN D C AS H F LO W
tal s** To As set	84 17 1 ,	16 88 2 ,	84 17 1 ,	16 88 2 ,
uit Eq ** y	10 86 6 ,	10 39 6 ,	10 86 6 ,	10 39 6 ,
uit ati o** Eq y r	% 61	% 62	% 61	% 62
t in -be ari de bt Ne ter est ng	3, 53 3	2, 66 4	3, 53 3	2, 66 4
h f low fro ion Cas rat m o pe s	-11 2	38 2	1, 02 3	1, 20 2
Cas h f low fro m f ina nci ng	45 6	33 9	-28 7	26 3
PR OF ITA BIL ITY
Ba sic rni har e ( DK K) ea ngs pe r s	6.6 2	-2. 61	16 .15	22 .75
Dil ute d e ing sha ( DK K) arn s p er re	6.6 2	-2. 61	16 .15	22 .75
CE * RO	2.1 %	2.4 %	9.3 %	11 .5%
VO LU ME S
Ha ste d F e Is lan ds ( tgw ) rve aro	16 00 5 ,	19 27 6 ,	52 40 8 ,	66 68 6 ,
d S lan d ( ) Ha ste cot tgw rve	1, 06 2	5, 19 8	20 59 8 ,	23 91 7 ,
To tal Ha st rve	17 06 7 ,	24 47 4 ,	73 00 6 ,	90 60 3 ,
Far mi FO tra nsf ed to VA P ( tgw ) ng err	5, 73 5	6, 94 4	22 78 7 ,	26 40 1 ,
rod d ( ) VA P p tgw uce	6, 36 9	7, 23 1	22 65 0 ,	26 74 7 ,
ld f eed So to nn es	39 35 4 ,	32 60 0 ,	12 7, 77 5	12 7, 84 0
al f eed les Int to ern sa nn es	38 73 4 ,	31 42 2 ,	12 32 4, 1	12 3, 8 11
Sm olt lea sed th d F sla nd s (p cs) e I re ou san aro	16 5, 4	97 2 4,	2 14 17 ,	14 41 7 ,
olt lea sed th d S lan d ( ) Sm cot re ou san pcs	1, 66 7	3, 48 7	8, 99 3	11 00 8 ,
tal olt lea To sm re se	6, 83 1	8, 45 9	23 16 5 ,	25 42 5 ,

* Aligned for fair value adjustment of biomass, onerous contracts provisions, income from associates and revenue tax – refer to Note 10.

** Comparing figures from end 2022

*** Return on average capital employed, based on operational EBIT –

refer to Note 10.

**** Calculated EBIT per KG released smolt

Q4 Q4 YTD YTD

Summary of the 4th Quarter and the year 2023

(Figures in parenthesis refer to the same period last year).

The Bakkafrost Group delivered a total operational EBIT of DKK 356 million (DKK 376 million) in Q4 2023 and made a profit of DKK 392 million (DKK -154 million). According to Bakkafrost's revised segment structure, the business segment's operational EBIT were as follows:

	Q 4	Q 4
Op t ion l E B I T ( D K K ) era a m	2 0 2 3	2 0 2 2
O Op ion l F F - t E B I T era a	2 3 9	0 1 5
hw ion l Fre ter F O Op t E B I T s a era a –	5 2	5 2
hw ion l Fre ter S C T - Op t E B I T s a era a	-9	-8
Fa ing F O - Op t ion l E B I T rm era a	6 4	2 5 4
ing S C Op ion l Fa T – t E B I T rm era a	-4 8	0 -1 7
ice ion l Se Op t E B I T rv s - era a	1 3	1
les he ion l Sa & O t Op t E B I T era a r –	1 0 1	1 0 6

During Q4 2023, the FOF segment sourced 53,552 tonnes (46,051 tonnes) of raw material. The Operational EBIT margin was 25% (13%), and fish feed sales amounted to 39,354 tonnes (32,600 tonnes).

For the full year 2023, the FOF segment's operational EBIT margin was 23% (17%). During the full year 2023, Havsbrún sourced 467,037 tonnes (297,814 tonnes) of raw material.

In Q4 2023, the Freshwater segments in the Faroe Islands and Scotland released a total of 6.8 million (8.5 million) smolts combined:

• Freshwater FO: 5.1 million (5.0 million),
• Freshwater SCT: 1.7 million (3.5 million).

In 2023, the freshwater segments have released a total of 23.2 (25.4) million smolts:

• Freshwater FO: 14.2 million (14.4 million),
• Freshwater SCT: 9.0 million (11.0 million).

In Q4 2023, the Freshwater FO segment made an operational EBIT per kg released smolt of 26.75 DKK/kg (34.55 DKK/kg), corresponding to 41.78 NOK/kg (48.26 NOK/kg). The Freshwater SCT segment made an operational EBIT per kg released smolt of - 49.44 DKK/kg (-20.60 DKK/kg), corresponding to - 77.23 NOK/kg (-28.77 NOK/kg).

The Farming segments achieved higher prices in Q4 2023 than in Q4 2022. Both Farming FO and Farming Scotland segments had lower harvest volume in Q4 2023 compared to Q4 2022. In Q4 2023, the Farming SCT segment had incident-based costs of DKK 48 million (DKK 83 million).

The total combined harvest in Q4 2023 of the farming segments in the Faroe Islands and Scotland was 17,067 tonnes gutted weight (24,474 tgw):

• Farming FO: 16,005 tgw (19,276 tgw),
• Farming SCT: 1,062 tgw (5,198 tgw).

In 2023, the farming segments have harvested a total of 73,006 tonnes gutted weight (90,603):

• Farming FO: 52,408 tgw (66,686 tgw),
• Farming SCT: 20,598 tgw (23,917 tgw).

In Q4 2023, the Farming FO segment made an operational EBIT/kg of 4.01 DKK/kg (13.19 DKK/kg), corresponding to 6.27 NOK/kg (18.43 NOK/kg). The Farming SCT segment made an operational EBIT/kg of -44.97 DKK/kg (-32.64 DKK/kg), corresponding to - 70.24 NOK/kg (-45.60 NOK/kg).

The Services segment made an operational EBIT/kg of 0.76 DKK/kg (0.05 DKK/kg), corresponding to 1.18 NOK/kg (0.06 NOK/kg). The operational EBIT margin for the segment was 7% (1%).

The Sales & Other segment had a revenue of DKK 2,355 million (2,385 million) and an operational EBIT margin of 4% (4%). The operational EBIT/kg was 5.94 DKK/kg (4.33 DKK/kg), corresponding to 9.27 NOK/kg (6.05 NOK/kg).

The performance according to the previously used business segment structure can be found in the Appendix.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as dividend. Bakkafrost's financial position is strong with a solid balance sheet, a competitive operation and available credit facilities. The Board of Directors proposes to the Annual General Meeting that DKK 8.70 (NOK 13.26*) per share shall be paid out as dividend. The Annual General Meeting will be convened on Tuesday the 30th of April 2024.

* The dividend per share in NOK is subject to changes depending on the exchange rate between NOK and DKK, which will be announced after the Annual General Meeting.

Results from the 4th Quarter of 2023 and the year 2023

Income Statement

(Figures in parenthesis refer to the same period last year).

The Group's operating revenue amounted to DKK 1,562 million (DKK 1,940 million) in Q4 2023. For 2023, the operating revenue amounted to DKK 7,141 million (DKK 7,130 million).

The Group's operational EBIT was DKK 356 million (DKK 376 million) in Q4 2023. For the full year 2023, the Group's operational EBIT was DKK 1,544 million (DKK 1,705 million).

The fair value adjustment of the Group's biological assets amounted to DKK 182 million (DKK -426 million) in Q4 2023. For the full year 2023, the fair value adjustment amounted to DKK -141 million (DKK 278 million).

Change in provisions for onerous contracts amounted to DKK 0 million (DKK 0 million) in Q4 2023. For 2023 0 DKK (DKK 0 million).

The revenue tax amounted to DKK -27 million (DKK -51 million) in Q4 2023. The revenue tax for the full year of 2023 was DKK -153 million (DKK -215 million).

Net taxes amounted to DKK -87 million (DKK -13 million) in Q4 2023. For 2023, net taxes amounted to DKK -193 million (DKK -346 million).

The result for Q4 2023 was DKK 392 million (DKK - 154 million) and for 2023, the result was DKK 955 million (DKK 1,344 million).

Statement of Financial Position

(Figures in parenthesis refer to the end of last year).

The Group's total assets amounted to DKK 17,841 million (DKK 16,882 million) at the end of Q4 2023.

Intangible assets amounted to DKK 4,509 million (DKK 4,509 million) at the end of Q4 2023.

Property, plant, and equipment amounted to DKK 6,220 million (DKK 5,647 million) at the end of Q4 2023. In Q4 2023, the purchase of property, plant, and equipment amounts to DKK 303 million (DKK 533 million in Q4 2022).

Right-of-use assets amounted to DKK 413 million (DKK 439 million) in Q4 2023.

Biological assets' carrying amount (fair value) amounted to DKK 3,336 million (DKK 2,938 million) at the end of Q4 2023. Compared to year-end 2022, biological assets have increased. A fair value adjustment amount to DKK 741 million (DKK 883 million) at the end of Q4 2023 is included in the carrying amount of the biological assets.

Inventories amounted to DKK 1,149 million (DKK 1,074 million) at the end of Q4 2023.

Total receivables, including long-term receivables, financial derivatives, and deferred tax assets, amounted to DKK 1,513 million (DKK 1,321 million) at the end of Q4 2023.

Total cash and cash equivalents amounted to DKK 412 million (DKK 720 million) at the end of Q4 2023.

The Group's equity amounted to DKK 10,866 million (DKK 10,396 million) at the end of Q4 2023. The change in equity consists primarily of the result for 2023 and the payout of dividends.

Total non-current liabilities amounted to DKK 6,228 million (DKK 5,563 million) at the end of Q4 2023.

Deferred and other taxes amounted to DKK 1,953 million (DKK 1,826 million) at the end of Q4 2023.

Long-term interest-bearing debt was DKK 3,944 million (DKK 3,383 million) at the end of Q4 2023.

Leasing debt amounted to DKK 397 million (DKK 460 million) at the end of Q4 2023.

At the end of Q4 2023, the Group's total current liabilities were DKK 747 million (DKK 923 million). The current liabilities consist of short-term leasing debt and accounts payable, tax payable and other debt.

The net interest-bearing debt amounted to DKK 3,533 million at the end of Q4 2023, compared to DKK 2,664 million at year-end 2022. Undrawn credit facilities amounted to DKK 1,851 million at the end of Q4 2023.

The equity ratio was 61% at the end of Q4 2023, compared to 62% at the end of 2022.

Cash Flow

(Figures in parenthesis refer to the same period last year).

The cash flow from operations was DKK -112 million (DKK 382 million) in Q4 2023. For the full year of 2023, the cash flow from operations was DKK 1,023 million (DKK 1,202 million).

The cash flow from investment activities amounted to DKK -302 million (DKK -570 million) in Q4 2023. The primary investments have been in new and current hatcheries and the new feed line. For 2023, the cash flow from investments amounted to DKK -1,044 million (DKK -1,255 million).

The cash flow from financing activities totalled DKK 456 million (DKK 339 million) in Q4 2023. For the full year of 2023, cash flow from financing amounted to DKK -287 million (DKK 263 million).

In Q4 2023, the net change in cash flow amounted to DKK 41 million (DKK 151 million). For the full year of 2023, net change in cash flow amounted to DKK -308 million (DKK 210 million).

At the end of Q4 2023, the Group had unused committed credit facilities of DKK 1,851 million (DKK 2,542 million). In addition, the Group has an accordion of EUR 150 million.

FOF Segment

Fishmeal, fish oil and fish feed involve the production and sale of fishmeal, fish oil and fish feed. The production of fishmeal, fish oil and fish feed are operated by Bakkafrost's subsidiary Havsbrún, located in Fuglafjørður. Fishmeal and oil are sold externally, but also used internally to produce fish feed for the Farming and Freshwater segments.

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	ha C ng e
ina ia F l nc
ta l re To ve nu e	9 6 8 9 8 5,	9 1, 2 6 9 7	2 2 %
ion l Op t E B I T era a	2 3 9, 0 2 6	1 0 4, 5 1 3	1 2 9 %
ion l Op t E B I T D A era a	2 4 5, 2 1 2	1 1 1, 1 0 4	1 2 1 %
ion in Op t l E B I T m era a arg	2 5 %	1 3 %
Op ion l in t E B I T D A Ma era a rg	2 % 5	% 1 4
Vo lum ( to ) es nn es
To ta l Fe d s l d e o	3 9, 3 5 4	3 2, 6 0 0	2 1 %
d in l sa le Fe ter F O e na -	2 4, 5 2 5	2 1, 0 1 3	1 7 %
d in l sa le Fe ter S C T e na -	1 4, 2 0 9	1 0, 4 0 9	3 7 %
d e l s le Fe ter e x na a -	6 2 0	1, 1 7 8	-4 7 %
is hm l e l sa le F ter ea x na	1 1, 9 3 4	1 2, 4 9 3	% -4
is h o i l e l sa le F ter na x	5, 4 3 8	2, 8 1 0	9 4 %
ive d r ia l Re ter ce aw m a	5 3, 5 5 2	4 6, 0 5 1	1 6 %
F is hm l p du t ion ea ro c	1 3, 3 2 8	1 0, 9 0 9	2 2 %
is h o i l p du ion F t ro c	8 3 8 4,	6 3 5, 4	% -1 4

Volumes

Havsbrún received 53,552 tonnes (46,051 tonnes) of raw material to produce fishmeal and fish oil in Q4 2023. The raw material intake depends on the fishery in the North Atlantic and available species of fish. In 2023, Havsbrún received 467,037 tonnes (297,814 tonnes) of raw material.

The fishmeal production in Q4 2023 was 13,328 tonnes (10,909 tonnes).

Fish oil production in Q4 2023 was 4,838 tonnes (5,634 tonnes). The production of fish oil varies depending on the species of fish sourced for production and the timing of the catch.

Fish feed sales amounted to 39,354 tonnes (32,600 tonnes) in Q4 2023. The FO farming segment internally used 24,525 tonnes (21,013 tonnes). The SCT farming segment internally used 14,209 tonnes (10,409 tonnes).

Financial Performance

The operating revenue for the FOF segment amounted to DKK 966 million (DKK 791 million) in Q4 2023.

Total revenue for the FOF segment in Q4 2023 was higher than the same quarter last year. The increase in external revenue is due to higher volumes of fishmeal and fish oil in Q4 2023 compared to Q4 2022.

Operational EBIT was DKK 239 million (DKK 105 million) in Q4 2023, and the Operational EBIT margin was 25% (13%).

Freshwater Segments

The two Freshwater segments both include broodstock and smolt production in hatcheries on land. In the broodstock operation, eggs are produced from breeding selfowned salmon strains. Eggs are sold to the hatcheries who in turn produce from egg to smolt, which are sold to the Farming operations in the Faroe Islands and Scotland. There are two similar Freshwater segments – one in the Faroe Islands and one in Scotland. The Freshwater segments rely on certain services provided by the Services segment, such as waste handling for biogas production.

Freshwater – Faroe Islands

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	C ha ng e
ina ia l F nc
l re To ta ve nu e	1 8 7, 1 8 8	1 6 1, 2 6 9	1 6 %
ion l Op t E B I T era a	5 1, 7 9 3	5 2, 2 2 2	-1 %
Op t ion l E B I T / kg ( D K K ) * era a	2 6. 7 5	3 4. 5 5	-2 3 %
Op ion l in t E B I T m era a arg	% 2 8	% 3 2
Vo lum es
Sm l t Re lea d - P iec o se es	5, 1 6 4	4, 9 7 2	4 %
Sm l lea d - S ize (g ) t Re Av o se g	3 7 5	3 0 4	2 3 %

* Calculated EBIT per KG released smolt

Volumes

5.1 million (5.0 million) smolts were transferred to the sea in Q4 2023, which aligns with the smolt transfer plan. In 2023, 14.2 million (14.4 million) smolts were transferred, which is in line with the smolt transfer plan.

Financial Performance

In Q4 2023, the operating revenue for the Freshwater Faroe Islands segment was DKK 187 million (161 million) – an increase of 16%. The operational EBIT/kg DKK for Q4 2023 was 26.75 (34.55) – a decrease of 23%.

Freshwater – Scotland

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	ha C ng e
ina ia l F nc
To ta l re ve nu e	2 6, 4 2 4	3 7, 4 6 4	-2 9 %
Op t ion l E B I T era a	-9, 3 1 4	-8, 2 5 9	-1 3 %
ion l / kg ( ) * Op t E B I T D K K era a	-4 9. 4 4	-2 0. 6 0	% -1 4 0
ion l in Op t E B I T m era a arg	-3 5 %	-2 2 %
lum Vo es
l lea d - iec Sm t Re P o se es	1, 6 6 7	3, 4 8 7	-5 2 %
l lea d - ize Sm t Re Av S o se g	1 1 3	1 1 5	-2 %

* Calculated EBIT per KG released smolt

Volumes

1.7 million (3.5 million) smolts were transferred to the sea in Q4 2023, which aligns with the smolt transfer plan. In 2023, 9.0 million (11.0 million) smolts were transferred, which is in line with the smolt transfer plan.

Financial Performance

In Q4 2023, the operating revenue for the Freshwater Scotland segment was DKK 26 million (37 million) – a decrease of 29%. The operational EBIT/kg DKK for Q4 2023 was -49.44 (-20.60) – a decrease of 140%.

Farming Segments

Fish farming involves growing salmon in the marine environment from smolt to harvest-ready salmon. The Group has marine farming licenses around the Faroe Islands and Scotland, which are reported as two separate segments (Farming Faroe Islands and Farming Scotland). The Farming segments rely on several services provided by the Services segment. These include fish transportation, treatments, net cleaning, heavy marine support services, harvest, packaging, and waste handling for biogas production. The Farming segments also rely on sales services provided by the Sales & Other segment.

Farming – Faroe Islands

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	C ha ng e
ina ia l F nc
l re To ta ve nu e	9 0 8, 7 0 4	1, 0 6 2, 2 7 4	-1 4 %
ion l Op t E B I T era a	6 4, 2 1 3	2 5 4, 2 9 7	-7 5 %
Op t ion l E B I T / kg ( D K K ) era a	4. 0 1	1 3. 1 9	-7 0 %
Op ion l in t E B I T m era a arg	% 7	% 2 4
lum Vo es
Ha te d v lum ( tg ) rve s o es w	1 6, 0 0 5	1 9, 2 7 6	-1 7 %

Volumes

The total volumes harvested in Q4 2023 were 16,005 tonnes gutted weight (19,276 tgw) – a change in volume of -17%. The harvested volumes for the full year 2023 were 52,408 tonnes gutted weight (66,686 tgw).

Financial Performance

In Q4 2023, the operating revenue for the Farming Faroe Islands segment was DKK 909 million (1,062 million) – a decrease of 14%. The operational EBIT/kg (DKK) for Q4 2023 was 4.01 (13.19) – a reduction of 70%.

Farming – Scotland

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	ha C ng e
ina ia l F nc
l r To ta ev en ue	4 9, 6 3 2	2 7 3, 4 4 9	-8 2 %
Op ion l t E B I T er a a	-4 7, 7 6 1	-1 6 9, 6 8 0	% 7 2
ion l / kg ( ) Op t E B I T D K K er a a	-4 4. 9 7	-3 2. 6 4	-3 8 %
ion l in Op t E B I T er a a ma rg	-9 6 %	-6 2 %
Vo lum es
d v lum ( ) Ha te tg rv es o es w	1, 0 6 2	5, 1 9 8	-8 0 %

Volumes

The total volumes harvested in Q4 2023 were 1,062 tonnes gutted weight (5,198 tgw) – a change in volume of -80%. The harvested volumes for the full year of 2023 were 20,598 tonnes gutted weight (23,917 tgw).

Financial Performance

In Q4 2023, the operating revenue for the Farming Scotland segment was DKK 50 million (273 million) – a decrease of 82%. The operational EBIT/kg (DKK) for Q4 2023 was -44.97 (-32.64) – a reduction of 38%.

Costs of DKK 48 million (DKK 81 million) relate to incident-based mortality in Q4 2023 and for the year 2023 DKK 277 million (DKK 283 million).

Services

The Services segment provides several services to the Group. The segment operates a fleet of large wellboats and Farming Support Vessels in addition to convert organic waste into biogas, heating, electricity, and fertiliser, which is sold externally. The segment also provides harvesting services to both the Scottish and Faroese farming operation as well as styrofoam boxes to the Faroese operation.

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	C ha ng e
F ina ia l nc
l re To ta ve nu e	1 9 7, 7 5 3	2 0 3, 5 0 1	-3 %
ion l Op t E B I T era a	1 2, 9 0 4	1, 1 0 7	1 0 6 6 %
ion l kg ( ) Op t E B I T / D K K era a	0. 7 6	0. 0 5	1 5 7 1 %
Op t ion l E B I T m in era a arg	7 %	1 %
lum Vo es
l du d ( h ) To ta En Mw erg y p ro ce	3, 3 2 2	3, 9 0 6	-1 5 %
Ha te d Vo lum ( tg ) rve s es w	1 7, 0 6 7	2 4, 4 7 4	-3 0 %

Volumes

Førka produced 3,322 Mwh of energy in Q4 2023 (3,906 Mwh) – a change in volume of -15%. Total energy for the full year of 2023 was 11,404 Mwh (15,284).

Financial Performance

In Q4 2023, the operating revenue for the Services segment was 198 million (204 million) – a decrease of 3%. The operational EBIT was 13 million (1 million) and for the full year 44 million (15 million).

Sales & Other

The Sales & Other segment optimises the value retention and provides freight & logistical services. The segment has processing capacity in the Faroe Islands, Scotland, Denmark, and the US for the production of value-added products (VAP). A significant share of the salmon sold is processed to VAP-products for the retail market.

	Q 4	Q 4
D K K 1, 0 0 0	2 0 2 3	2 0 2 2	C ha ng e
F ina ia l nc
l re To ta ve nu e	2, 3 8 6 5 4, 5	2, 3 8 2 0 5, 7	% -1
ion l Op t E B I T era a	1 0 1, 3 3 7	1 0 6, 0 5 0	-4 %
ion l / kg ( ) Op t E B I T D K K era a	5. 9 4	4. 3 3	3 7 %
Op t ion l E B I T m in era a arg	4 %	4 %
lum Vo es
d lum ( ) Ha te Vo tg rve s es w	1 7, 0 6 7	2 4, 4 7 4	-3 0 %
ing Fa F O tra fer d to V A P ( tg ) rm ns re w	5, 7 3 5	6, 9 4 4	-1 7 %
du d ( ) V A P p tg ro ce w	6, 3 6 9	2 3 7, 1	2 % -1
d v lum d in du ion Ha te V A P p t rve s o es us e ro c	3 6 %	3 6 %
d v lum l d fre h / fro Ha te rve s o es so s ze n	6 4 %	6 4 %

Volumes

Total volumes harvested in Q4 2023 for Bakkafrost Group were 17,067 tonnes gutted weight (24,474) – a change in volume of -30%. The harvested volumes for the full year of 2023 were 73,006 tonnes gutted weight (90,603).

Total volumes transferred in Q4 2023 to VAP were 5,735 tonnes gutted weight (6,944) – a change in volume -17%. The split between VAP and Fresh was 36% and 64% (36% / 64%). VAP produced 6,369 tonnes gutted weight in Q4 2023 (7,231)– a change in volume of -12%.

Financial Performance

In Q4 2023, the operating revenue for the Sales and other segment was DKK 2,355 million (DKK 2,385 million). The total revenue for the Sales & Other segment decreased in Q4 2023, compared with Q4 2022, because of lower volumes. The operating revenue for the Sales & other segment for the full year of 2023 was DKK 9,273 million (DKK 10,589 million).

Outlook

Market

Stable supply in Q4 2023

The supply of salmon increased slightly by 0.3% in Q4 2023 compared to Q4 2022, incl. inventory movements. Without inventory movements, the supply reduced 1.8%, according to the latest estimate from Kontali Analyse.

Stable salmon prices in Q4 2023

Salmon spot prices (in EUR) were 0.2% lower this quarter compared to Q4 2022. Prices in Q4 2023 were affected by the nearly unchanged supply and strong demand for salmon from certain markets such as the China and the US.

2% growth in 2024

No growth in global supply is expected for H1 2024. In H2 2024, the global supply is expected to grow around 4%, compared to H2 2023. For the full year 2024, the global supply is expected grow around 2%, excluding inventory movements.

Bakkafrost has a strong focus on ensuring a wellbalanced flow to the different markets to increase diversification and mitigate market risk. Bakkafrost operates in the main salmon markets, Europe, the USA, and the Far East. Since the beginning of the war in Ukraine, Bakkafrost has stopped all trading with Russia.

Farming

The farming operation in the Faroe Islands performed well in the fourth quarter. The new wellboat Bakkafossur, equipped with dual freshwater treament systems, has greatly enhanced sealice management and resulted in the lowest sealice levels ever. The average harvest weights, growht rates and feed conversion rates also got better during the quarter, especially after October when the last fish from the batch of smolt impaired by reduced hatchery water quality, as mentioned in Q3 2023, were harvested out. Looking ahead, the Faroese farming operation has a strong outlook and Bakkafrost expects to keep increasing harvest weights and improving farming KPI's in the next quarters.

In the Faroese freshwater operation, Bakkafrost has been working intensively for a long time to improve the production of large smolt, which is more complicated. The quality and performance of the large smolt have improved a lot since the first generation came from the Strond hatchery. The large-smolt production is moving into a phase focusing on maintaining consistent size and high quality of the smolt while increasing production volumes. The Norðtoftir, Glyvradal and Viðareiði hatcheries have been expanded which gave a capacity increase of more than 50% and the production and capacity utilisation are now growing steadily. In Q4 2023, Bakkafrost signed a contract to build a big new hatchery in Skálavík, Faroe IsIands, which will increase the production capacity by around 7 million smolt at 500g. The construction will begin in Q1 2024 and when it is finished in the next three years, the annual smolt production capacity in the Faroe Islands will be 24 million smolts of 500g, as explained in the 2024-2028 investment programme.

Bakkafrost's farming operation in Scotland faced difficulties during the fall when the seawater temperatures were higher and biological hazards also rise. The salmon farming industry in Scotland has suffered from major problems in recent years mainly because of micro-jellyfish and other factors that damage the gill health of the fish. However, Bakkafrost's farming operation has seen better biology since mid-September 2023, resulting in lower mortality. The increased freshwater dual treatment capacity in Scotland is a key factor by improving fish gill health while also keeping sealice levels record low. This has reduced the potential impact of the biological challenges during Q4 2023. Consequently, to leverage the improved biological development,

Bakkafrost minimised Q4 2023 harvest volume, allowing fish to grow larger for harvest at higher harvest weights and value in 2024.

In order to address the biological risks, Bakkafrost has made strategic adjustments to its short-term plans and production strategy for the Scottish farming operation. A comprehensive risk assessment has been conducted for all farming sites, evaluating the feasibility of stocking and farming these sites using various strains, hatcheries, and smolt sizes. Based on this evaluation, Bakkafrost will prioritise and advance the utilisation of large, high-quality smolt from the Applecross hatchery over external sources. Consequently, Applecross will supply nearly all of the required smolt to the marine sites in 2024.

Some farming sites may not be restocked or remain productive during Q3 until the risks have been mitigated through the use of large, high-quality smolt. This approach will reduce the biomass at risk in Q3 and result in around 75% of the 2024 harvest volume being harvested in the first half of the year.

The Scottish freshwater operation is focused to grow the production of big and healthy smolt at Applecross, after the first trial-batch of 250g smolt was released in May 2023. In 2024, Applecross is expected to supply 9.1 million smolts at 200-250g, which will make up 98% of the planned smolt release for 2024.

When the Applecross 5 & 6 expansions are completed around year-end 2024, Applecross will be able to produce all smolts for Scotland at around 200-300g. As shown in the Faroe Islands, big and healthy smolt will face lower risks in the marine environment because of shorter production cycles in the sea and more robust salmon. In Q4 2023, the average weight of released smolt in Scotland was 113g, which is 2% lower than in Q4 2022.

Smolt release

Bakkafrost has guided for a smolt release in the Faroe Islands of around 17.8 million large smolts in 2024. In Scotland, the smolt release in 2024 is expected to be around 9.3 million smolts with an average weight over 200g. The number and average weight of smolts released are key elements of predicting Bakkafrost's future production.

Mi llio lt n s mo nsf ed tra err	'24 e	'23	'22	'21	'20	'19
FO	17 .8	14 .4	14 .5	14 .4	14 .3	12 .7
SCT	9.3	10 .5	10 .8	11 .1	10 .4	12 .4
eig ht (g ) Av g. w
FO	45 0	39 6	34 5	37 6	32 0	20 5
SCT	>20 0	11 7	10 7	95	88	83

In the freshwater hatchery operation, Bakkafrost has a focus on ensuring stable growth and continuous improvements of smolt quality. In the Faroes Islands, it is important to harmonise the size and quality of the smolt as it leads to better utilisation of marine farming sites and increased harvest weights.

Harvest volumes for 2023 in the Faroe Islands were 52.4 thousand tonnes gutted weight and 20.6 thousand tonnes gutted weight in Scotland, giving a total of 73.0 thousand tonnes gutted weight.

In 2024, Bakkafrost expects to harvest around 66,000 tonnes gutted weight in the Faroe Islands and 25,000 tonnes gutted weight in Scotland, giving a total of around 91,000 tonnes gutted weight. The quarterly harvest profile is outlined in in the table below. Biological, environmental and market conditions can affect the expected harvest profile.

Expected harvest profile as a % of total harvest pr. region:

ion Re g	Q 1	Q 2	Q 3	Q 4
FO	20	25	27	28
	%	%	%	%
SCT	25	44	16	14
	%	%	%	%

The estimates for harvest volumes and smolt releases in both geographies are dependent on biological development.

Sales & VAP (Value added products)

Bakkafrost's highly flexible value chain includes stateof-the-art VAP processing capacity, which enables the company to adapt effectively to rapidly changing market situations.

As a result of changes in the Faroese revenue tax, Bakkafrost has adjusted the strategy for contracted VAP (Value-Added Products) to reduce contract exposure for 2024.

For 2024, Bakkafrost has signed contracts covering around 9% of the expected harvest volumes in the Faroe Islands and Scotland combined.

FOF (Fishmeal, oil and feed)

The outlook of fishmeal and fish oil production is dependent on the availability of raw materials.

The ICES 2024 recommendation for blue whiting is 1,530 thousand tonnes, which represents a 12.5% increase from the recommendation for 2023.

In 2024 Bakkafrost expects continued high production volumes of fishmeal and normalisation of fish oil production volumes.

The major markets for Havsbrún's fish feed are the internal Faroese and Scottish Farming segments.

Investments

On the Capital Markets Day on 6 June 2023, Bakkafrost announced a 6.3bn DKK investment plan for 2024-2028. The investments will enable a transformation of the operation in Scotland and provide sustainable growth in the Faroe Islands as well as Scotland.

The main purpose of the investments in Scotland is to replicate Bakkafrost's successful operation in the Faroe Islands. Bakkafrost considers building 2 large energy-efficient hatcheries in Scotland, enabling the implementation of Bakkafrost's large smolt strategy and giving an annual production capacity above 15 million smolts at 500g. Having large smolt in Scotland will transform the performance, lower the biological risk and increase harvest volumes. In addition to building hatchery capacity, Bakkafrost plans to build a new processing plant to strengthen processing capabilities and increase flexibility in operation. Bakkafrost will also invest in more service vessel capacity to improve the mitigation of biological risk and improve the cost of operation. Further, Bakkafrost will make investments in marine site development.

The investments in the Faroe Islands include increasing annual hatchery production capacity to around 24 million smolts at 500g, cost-efficient repurposing of old hatcheries into broodstock operation, expansion of feed production capacity and growing sustainably by optimization of existing sites and new technology.

With the investment plan, Bakkafrost expects to sustainably grow the total annual harvest volumes to 165,000 tonnes in 2028. Over the same period, the total annual production capacity in Bakkafrost's value chain will reach 200,000 tonnes gutted weight.

2024-2028 6.3bn DKK Investment programme vs. 2022-2026 6.2bn DKK investment programme (DKK 1,000)

BAKKAFROST | INTERIM REPORT | Q4 2023 and the year 2023 12

2024-2028 Investment programme per category (DKK 1,000)

Financial

The global salmon product market's long-term balance is likely to favor Bakkafrost. Bakkafrost has a long value chain and a cost-efficient production of highquality salmon products and will likely maintain financial flexibility going forward.

In March 2022, Bakkafrost secured a 700 mEUR sustainability-linked credit facility (expandable by 150 mEUR) with a 5-year term and 2-year extension options. This facility, along with Bakkafrost's strong equity ratio, bolsters the Group's financial strength for organic growth and cost reduction in Scotland, while also facilitating M&A and future organic growth opportunities, and upholding an unchanged dividend policy.

Risks

Biological risk has been and will be a substantial risk for Bakkafrost. The Annual Report 2022 explains the biological risk and Bakkafrost's risk management in this regard.

Reference is made to the Outlook section of this report for other comments on Bakkafrost's risk exposure and Note 3.

Bakkafrost is, as explained in the Annual Report 2022, exposed to the salmon price.

The Annual Report 2022 is available on request from Bakkafrost and Bakkafrost's website, www.bakkafrost.com.

Events after the Reporting Period

From the date of the statement of financial position until today, no events have occurred that materially influence the information provided by this report.

Statement by the Management and the Board of Directors on the Interim Report

2023 to 31 December 2023.

Group operations and

In our opinion, the accounting policies used are appropriate, and the interim report gives a true and fair

view of the Group's financial positions on 31

December 2023, as well as the results of the Group

activities and cash flows for the period 1 January

In our opinion, the management's review provides a

true and fair presentation of the development in the

The Management and the Board of Directors have today considered and approved the interim report of P/F Bakkafrost for the period 1 January 2023 to 31 December 2023.

The interim report, which has not been audited or reviewed by the company's independent auditors, has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and Faroese disclosure requirements for listed companies.

Glyvrar, February 19th, 2024

Management:

J. Regin Jacobsen CEO

The Board of Directors of P/F Bakkafrost:

Rúni M. Hansen Annika Frederiksberg Øystein Sandvik Chairman of the Board Board Member Board Member

Teitur Samuelsen Einar Wathne Guðrið Højgaard Board Member Board Member Board Member

financial circumstances of the results for the period and of the overall financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group.

Over and above the disclosures in the interim report, no changes in the Group's most significant risks and uncertainties have occurred relative to the disclosures in the annual report for 2022.

Consolidated Income Statement

For the period ended 31 Dec 2023

	Q 4	Q 4
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
Op tin era g r ev en ue	56 90 2 1, 1,	93 9, 80 9 1,	0, 84 9 7, 14	12 9, 96 7, 7
rch of od Pu ase go s	-24 7, 74 4	-58 3, 14 3	-2, 40 1, 06 3	-2, 75 6, 27 3
Ch e i n i d b iolo ica l ent ang nv ory an g
(a ) ets t c ost ass	-14 2, 73 3	-93 20 1 ,	14 1, 20 0	66 6, 55 0
Sal d p l ex ary an ers on ne pen ses	-21 7, 09 6	-24 0, 23 1	-86 2, 67 0	-83 1, 67 9
Oth tin er op era g e xp en ses	-43 7, 98 5	-52 3, 80 1	-1, 87 5, 23 9	-1, 99 0, 29 9
cia tio De pre n	-17 9, 38 4	-12 7, 74 6	-63 7, 20 9	-53 7, 48 0
Oth inc er om e	19 23 2 ,	4, 32 4	37 94 2 ,	24 37 9 ,
tio Op l EB IT* era na	35 6, 19 2	37 6, 01 1	1, 54 3, 81 0	1, 70 5, 16 5
Fai alu dju stm ent f b iolo ica l r v e a s o g
ets ass	18 1, 63 4	-42 6, 05 4	-14 1, 66 5	27 8, 39 2
On tra cts ero us con	0	0	0	0
e f iat Inc om rom as soc es	39 39 0 ,	47 88 9 ,	70 65 2 ,	57 59 7 ,
Rev tax en ue	-27 48 9 ,	-51 02 0 ,	-15 2, 83 6	-21 5, 00 1
nin bef in Ear ter est d t gs ore an ax es
( EB IT)	54 9, 72 7	-53 174 ,	1, 31 9, 96 1	1, 82 6, 15 3
t in ter est Ne re ve nue	11 87 1 ,	97 1 4,	20 81 1 ,	00 0 7,
t in Ne ter est ex pen ses	-66 19 2 ,	-39 72 5 ,	-18 4, 68 0	-65 03 9 ,
eff Ne t c ect urr en cy s	-14 19 8 ,	-62 39 9 ,	2, 78 4	-69 06 6 ,
Oth fin ial er anc ex pe nse s	-2, 08 2	9, 60 7	-10 52 5 ,	-8, 71 3
nin bef s ( T) Ear ta EB gs ore xe	9, 12 6 47	0, 72 0 -14	8, 35 1, 14 1	69 0, 33 1, 5
Tax es	-87 09 8 ,	-13 33 0 ,	-19 3, 13 5	-34 6, 00 5
Pro fit los s fo r th eri od or e p	39 2, 02 8	-15 4, 05 0	95 5, 21 6	1, 34 4, 33 0
fit los s fo r th Pro or e y ear
att rib uta ble to
llin int No tro sts n-c on g ere	-1, 52 4	1, 01 7	-35 8	-78 0
f P / akk afr Ow F B ost ner s o	39 3, 55 2	-15 5, 06 7	95 5, 57 4	1, 34 5, 11 0
Ear nin sh ( DK K) gs per are	6.6 2	-2. 61	16 .15	22 .75
Dil d e ing sha ( K) ute DK arn s p er re	6.6 2	61 -2.	16 .15	22 .75

* Operational EBIT is EBIT before fair value of biomass, onerous contracts, income from associates and revenue tax.

Consolidated Statement of Comprehensive Income

For the period ended 31 Dec 2023

	Q 4	Q 4
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
fit for eri Pro th od e p	39 2, 02 8	-15 4, 05 0	95 5, 21 6	1, 34 4, 33 0
Ch fin ial de riv ati ang es on anc ve s	9, 91 5	21 97 1 ,	-6, 40 0	11 10 2 ,
f in eff He e t ect reo com ax	-1, 51 3	-3, 35 2	97 6	-1, 10 3
har e-b d p Res e t nt erv o s ase ay me	0	1, 25 5	-39 6	12 76 0 ,
Cu tra nsl ati dif fer rre ncy on enc es	-22 12 6 ,	10 23 7 ,	58 65 3 ,	-28 49 0 ,
Ad jus of sha tm ent tre asu ry res	-6, 85 4	2, 33 0	1, 03 4	8, 25 5
Ne t o the reh siv e in e t o b ecl ifie d r co mp en com e r ass
fit s in rio to los bse ent ds pro or su qu pe	-20 57 8 ,	32 44 1 ,	53 86 7 ,	2, 52 4
Oth he nsi in er com pre ve com e	-20 57 8 ,	32 44 1 ,	53 86 7 ,	2, 52 4
To tal reh siv e in e f the rio d co mp en com or pe	37 1, 45 0	-12 1, 60 9	1, 00 9, 08 3	1, 34 6, 85 4
Co reh siv e in e f the rio d a ttr ibu tab le mp en com or pe
to
llin int No tro sts n-c on g ere	-1, 52 4	1, 01 7	-35 8	-78 0
f P / akk afr Ow F B ost ner s o	37 2, 97 4	-12 2, 62 6	1, 00 9, 44 1	1, 34 7, 63 4

Consolidated Statement of Financial Position As on 31 Dec 2023

31 dec 31 Dec DKK 1,000 2023 2022 ASSETS Non-current assets Intangible assets 4,509,334 4,508,704 Property, plant and equipment 6,220,481 5,647,161 Right of use assets 413,277 438,545 Financial assets 288,701 234,209 Deferred tax assets 512,485 336,020 Total non-current assets 11,944,278 11,164,639 Current assets Biological assets (biomass) 3,335,570 2,938,485 Inventory 1,148,788 1,074,344 Total inventory 4,484,358 4,012,829 Financial derivatives 374 7,474 Accounts receivable 850,338 808,755 Other receivables 150,139 168,272 Total receivables 1,000,851 984,501 Cash and cash equivalents 411,674 719,603 Total current assets 5,896,883 5,716,933 TOTAL ASSETS 17,841,161 16,881,572

DK K 1 00 0 ,	31 de c 20 23	31 De c 20 22
EQ UIT Y A ND LIA BIL ITI ES
Eq uit y
Sha ita l re cap	59 22 8 ,	59 14 3 ,
Oth uit er eq y	10 80 3, 57 1 ,	10 33 3, 25 9 ,
llin int No tro sts n-c on g ere	3, 05 5	3, 41 1
To tal uit eq y	10 86 5, 85 4 ,	10 39 5, 81 3 ,
t li ab ilit ies No n-c urr en
fer red d o the De ta r ta xes an xes	1, 95 2, 66 8	1, 82 5, 87 3
Lon ter int st- bea rin de bt g- m ere g	3, 94 4, 49 8	3, 38 3, 28 9
lea sin de bt Lon ter g- m g	33 1, 11 5	35 3, 35 5
tal t li ab ilit ies To no n-c urr en	6, 22 8, 28 1	5, 56 2, 51 7
Cu nt liab ilit ies rre
Fin ial de riv ati anc ve s	0	0
Sho le asi de bt rt-t erm ng	65 84 8 ,	10 6, 21 5
ble d o the r d ebt Ac nts cou pa ya an	68 1, 17 8	81 7, 02 7
liab ilit ies To tal nt cu rre	74 7, 02 6	92 3, 24 2
tal lia bil itie To s	6, 97 30 5, 7	6, 48 9 5, 75
TO TA L E Q UIT Y A ND LIA BIL ITI ES	17 84 1, 16 1 ,	16 88 1, 57 2 ,

Consolidated Cash Flow Statement

For the period ended 31 Dec 2023

	Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
nin bef in d t ( IT) Ear ter est EB ore an ax es	54 9, 72 7	-53 174	1, 31 9, 96 1	1, 82 6, 15 3
gs		,
jus rite cia tio Ad tm ent s fo -do nd de r w wn s a pre n	17 9, 38 4	12 7, 74 6	63 7, 20 9	53 7, 48 0
Ad jus s fo alu dju of bi tm ent stm ent r v e a om ass	-18 63 1, 4	42 6, 05 4	66 14 1, 5	-27 8, 39 2
Ad jus s fo r in e f iat tm ent com rom as soc es	-39 39 0 ,	-47 88 9 ,	-70 65 2 ,	-57 59 7 ,
Ad jus s fo eff tm ent ect r c urr en cy s	-24 16 0 ,	-73 94 8 ,	46 41 4 ,	-14 5, 49 5
Tax id es pa	-19 6, 99 3	-17 0, 74 8	-19 6, 99 3	-17 0, 74 8
Ad jus tm ent f p isio n f tra cts s o rov or on ero us con	0	0	0	0
Ch in inv ent an ge ory	-24 5, 25 2	66 28 2 ,	-61 3, 19 4	-57 6, 84 1
Ch in eiv ab les an ge rec	34 4, 96 0	-29 3, 19 3	11 3, 95 5	-20 8, 95 1
Ch e i ent de bts ang n c urr	-49 8, 50 4	40 0, 64 5	-35 5, 64 3	27 6, 24 7
Cas h f low fro rat ion m o pe s	-11 1, 86 2	38 1, 77 5	1, 02 2, 72 2	1, 20 1, 85 6
h f low fro inv Cas est nts m me
fix Pro ds fro ale of ed ets cee m s ass	0	36 8	0	36 8
nts fo has f fi xed set Pay me r p urc e o as s	-30 2, 69 3	-53 2, 97 4	-1, 06 0, 00 6	-1, 23 68 0 5,
t in in fin ial Ne stm ent ets ve anc ass	23 4	-37 13 2 ,	16 16 0 ,	-27 38 7 ,
Ch in lon eiv ab les d d efe d t ter ets an ge g- m rec an rre ax ass	0	0	0	8, 10 2
inv Cas h f low fro est nts m me	-30 2, 45 9	-56 9, 73 8	-1, 04 3, 84 6	-1, 25 4, 59 7
h f low fro m f ina nci Cas ng
Ch in int bea rin de bt (s ho nd lon ) st- rt a an ge ere g g	52 8, 09 7	38 7, 38 7	54 6, 24 1	73 5, 35 2
Fin ial inc anc om e	12 84 8 ,	4, 06 8	21 78 8 ,	4, 31 0
Fin ial anc ex pen ses	-59 69 9 ,	-26 40 5 ,	-18 6, 63 0	-68 25 5 ,
Lea nts se pay me	-32 45 9 ,	-32 46 0 ,	-13 0, 74 0	-11 7, 02 2
eed s f le o f o sh Ne t p roc rom sa wn are s	6, 81 1	6, 81 1	13 43 5 ,	12 79 7 ,
Pro ds fro har ita l in cee m s e c ap cre ase s	0	0	40 53 1 ,	0
Div ide nd id pa	0	0	-59 1, 43 0	-30 3, 99 5
h f low fro m f ina nci Cas ng	45 5, 59 8	33 9, 40 1	-28 6, 80 5	26 3, 18 7
in uiv in rio Ne t c ha sh d c ash ale nts d nge ca an eq pe	41 27 7 ,	15 1, 43 8	-30 7, 92 9	21 0, 44 6
h a nd h e iva len ing ba lan Cas ts cas qu – o pen ce	37 0, 39 7	56 8, 16 5	71 9, 60 3	50 9, 15 7
Cas h a nd sh uiv ale nts los ing ba lan tot al ca eq – c ce	41 1, 67 4	71 9, 60 3	41 1, 67 4	71 9, 60 3

Consolidated Statement of Changes in Equity

As on 31 Dec 2023

Sh mi Sh bas ed nsl ati sed lue tai ned llin tal Pre Tre tra Pro Re tro To are um asu ry are on po va con g ita l Sh dif fer riv ati Div ide nd adj nin int uit DK K 1 00 0 Ca Re Pay nt De ust nts Ear st Eq p ser ve are s me en ces ve s me gs ere y , Eq uit 01 .01 .20 23 59 14 3 4, 02 7, 37 5 -18 51 2 20 55 9 17 74 2 6, 12 6 59 1, 43 0 88 3, 09 9 4, 80 5, 43 8 3, 41 3 10 39 5, 81 3 y , , , , , Co lid d p rof it 0 0 0 0 0 0 0 66 09 8, 34 2 -35 8 95 6, 31 9 ate -14 1, 5 1, nso Ch in f ina nci al d eri tiv 0 0 0 0 0 -6, 40 0 0 0 0 0 -6, 40 0 ang es va es f in eff 0 0 0 0 0 97 6 0 0 0 0 97 6 He e t ect reo com ax bas Sha ed nt 0 0 0 1, 06 8 0 0 0 0 0 0 1, 06 8 re- pay me nsl ati dif fer Cu tra 0 0 0 0 58 65 3 0 0 0 0 0 58 65 3 rre ncy on enc es , , To tal ot he reh siv e in 0 0 0 1, 06 8 58 65 3 -5, 42 4 0 0 0 0 54 29 7 r co mp en com e , , tal reh siv e in To 0 0 0 1, 06 8 58 65 3 -5, 42 4 0 -14 1, 66 5 1, 09 8, 34 2 -35 8 1, 01 0, 61 6 co mp en com e , Tre sha 0 0 10 03 4 0 0 0 0 0 0 0 10 03 4 asu ry res , , Sha ita l in Ca 85 0 0 0 0 0 0 0 40 44 6 0 40 53 1 re p cre ase , , id- t d ivi de nd 0 0 0 0 0 0 -59 43 0 0 29 0 -59 13 9 Pa 1, 1 1, ou cti ith To tal tra 85 0 10 03 4 0 0 0 -59 1, 43 0 0 40 73 7 0 -54 0, 57 4 nsa on w ow ne rs , , To tal ch in uit 85 0 10 03 4 1, 06 8 58 65 3 -5, 42 4 -59 1, 43 0 -14 1, 66 5 1, 13 9, 07 9 -35 8 47 0, 04 2 an ges eq y , , tal uit To 31 .12 .20 23 59 22 8 4, 02 7, 37 5 -8, 47 8 21 62 7 76 39 5 70 2 0 74 1, 43 4 5, 94 4, 51 7 3, 05 5 10 86 5, 85 5 eq y , , , , uit Eq 01 .01 .20 22 59 14 3 4, 02 7, 37 5 -26 76 7 7, 79 9 46 23 2 -3, 87 3 30 3, 99 5 60 4, 70 7 4, 32 8, 80 1 13 3 9, 34 7, 54 5 y , , , lid it Co ate d p rof 0 0 0 0 0 0 0 27 8, 39 2 1, 06 6, 71 8 -78 0 1, 34 4, 33 0 nso Ch in f ina nci al d eri tiv 0 0 0 0 0 10 2 0 0 0 0 10 2 11 11 ang es va es , , He f in e t eff ect 0 0 0 0 0 -1, 10 3 0 0 0 0 -1, 10 3 reo com ax Sha bas ed nt 0 0 0 12 76 0 0 0 0 0 0 0 12 76 0 re- pay me , , Cu tra nsl ati dif fer 0 0 0 0 -28 49 0 0 0 0 0 0 -28 49 0 rre ncy on enc es , , siv e in To tal ot he reh 0 0 0 12 76 0 -28 49 0 9, 99 9 0 0 0 0 -5, 73 1 r co mp en com e , , tal reh siv e in To 0 0 0 12 76 0 -28 49 0 9, 99 9 0 27 8, 39 2 1, 06 6, 71 8 -78 0 1, 33 8, 59 9 co mp en com e , , sha Tre 0 0 8, 25 5 0 0 0 0 0 1, 34 9 0 9, 60 4 asu ry res Ad dit ion of llin int tro sts 0 0 0 0 0 0 0 0 0 4, 06 0 4, 06 0 no n-c on g ere Pa id- t d ivi de nd 0 0 0 0 0 0 -30 3, 99 5 0 0 0 -30 3, 99 5 ou sed di vid end Pro 0 0 0 0 0 0 59 1, 43 0 0 -59 1, 43 0 0 0 po tal cti ith 0 0 8, 25 0 0 0 28 43 0 -59 0, 08 06 0 -29 0, 33 To tra 5 7, 5 1 4, 1 nsa on w ow ne rs tal ch in uit To 0 0 8, 25 5 12 76 0 -28 49 0 9, 99 9 28 7, 43 5 27 8, 39 2 -59 0, 08 1 3, 28 0 1, 04 8, 26 8 an ges eq y , , uit To tal 31 .12 .20 22 59 14 3 4, 02 7, 37 5 -18 51 2 20 55 9 17 74 2 6, 12 6 59 1, 43 0 88 3, 09 9 4, 80 5, 43 8 3, 41 3 10 39 5, 81 3 eq y , , , , ,		Sh are		Cu rre ncy		Bio Fai ma ss r	No n

Notes to the Accounts

Accounting Policy

General Information

P/F Bakkafrost is a limited company incorporated and domiciled in the Faroe Islands.

The Group's Annual Report 2022 is available at www.bakkafrost.com or upon request from the company's registered office at Bakkavegur 9, FO-625 Glyvrar, Faroe Islands.

This Condensed Consolidated Interim Report is presented in DKK.

Note 1. Statement of Compliance

This Condensed Consolidated Interim Report is prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting as adopted by the EU. It does not include all the information required for the full Annual and Consolidated Report and Accounts and should be read in conjunction with the Annual and Consolidated Report and Accounts for the Group as of 31 December 2022.

This interim report has not been subject to any external audit.

Note 2. Significant Accounting Policies

The accounting policies applied by the Group in this Condensed Consolidated Interim Report are the same as those used in the Annual Report for the year ended 31 December 2022. Since this report, the number of reportable segments has changed from four to seven, compliant with IFRS 8, Operating Segments. The comparing figures have been updated.

ACCOUNTING POLICIES SEGMENT REPORTING

The Group's main strategic business area is aquaculture, which consists of seven segments: Freshwater Faroe Islands, Freshwater Scotland, Farming Faroe Islands, Farming Scotland, Services, Sales & Other and production of fishmeal, oil and fish feed (FOF). Intersegment transfers or transactions are entered into under normal commercial terms and conditions, and the measurement used in the segment reporting is the same as used for the third party's transactions.

Fishmeal, fish oil and fish feed (FOF)

Fishmeal, fish oil and fish feed involve the production and sale of fishmeal, fish oil and fish feed. The production of fishmeal, fish oil and fish feed are operated by Bakkafrost's subsidiary Havsbrún, located in Fuglafjørður. Fishmeal and oil are sold externally, but also used internally to produce fish feed for the Farming and Freshwater segments. Transactions with the Freshwater and Farming segments are based on quarterly contracts at prices benchmarked externally.

The Freshwater Faroe Islands and Freshwater Scotland

The two Freshwater segments both include broodstock and smolt production in hatcheries on land. In the broodstock operation, eggs are produced from breeding self-owned salmon strains. Eggs are sold to the hatcheries who in turn produce from egg to smolt, which are sold to the Farming operations in the Faroe Islands and Scotland. There are two similar Freshwater segments – one in the Faroe Islands and one in Scotland. The Freshwater segments rely on certain services provided by the Services

segment, such as waste handling for biogas production. The pricing principle in transactions between the Freshwater segments and other segments are based on market prices and benchmarks.

The Farming Faroe Islands and Farming Scotland

Fish farming involves growing salmon in the marine environment from smolt to harvest-ready salmon. The Group has marine farming licenses around the Faroe Islands and Scotland, which are reported as two separate segments (Farming Faroe Islands and Farming Scotland). The Farming segments buys smolt from the Freshwater segments, fish feed from the FOF segment and sells the harvest-ready salmon to the Sales & Other segment at adjusted spot prices. The Farming segments rely on several services provided by the Services segment. These include fish transportation, treatments, net cleaning, heavy marine support services, harvest, packaging, and waste handling for biogas production. The Farming segments also rely on sales services provided by the Sales & Other segment. The pricing principle in transactions between the Farming segments and other segments are based on market prices and benchmarks.

Services

The Services segment provides several services to the Group. The segment operates a fleet of large wellboats and Farming Support Vessels in addition to convert organic waste into biogas, heating, electricity, and fertiliser, which is sold externally. The segment also provides harvesting services to both the Scottish and Faroese farming operation as well as styrofoam boxes to the Faroese operation. Transactions regarding well boat and FSV vessel services are long term-contracted and priced according to benchmarked market prices, the transactions for harvesting services and styrofoam boxes are based on benchmarks and armlength prices.

Sales & Other

The Sales & Other segment purchases salmon from the Farming segments based on market reference prices. The Sales & Other segment optimises the value retention and provides freight & logistical services. The segment has processing capacity in the Faroe Islands, Scotland, Denmark, and the US for production of value-added products (VAP). A significant share of the salmon sold is first produced into VAP-products for the retail market.

Note 3. Estimates and Risk Exposures

The preparation of financial statements is in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting principles and recognized amounts of assets, liabilities, income and expenses. The most significant estimates relate to the valuation of the fair value of biological assets. Estimates and underlying assumptions are reviewed on an ongoing basis and are based on the management's best assessment at the time of reporting. All changes in estimates are reflected in the financial statements as they occur.

Bakkafrost has made no significant changes in the estimates for these interim financial statements compared with the annual financial statements.

Descriptions of the accounting estimates are in the notes to the financial statements in the Annual Report 2022.

Note 4. Biological Assets

	31 De c	31 De c
	20 23	20 22
Bio log ica l as ing set nt 01 .01 s c arr y am ou	2, 93 8, 48 5	2, 44 8, 28 9
du rod ion rch Inc e t uct rea se o p or pu ase s	4, 19 8, 90 0	3, 96 4, 86 3
Red uct ion du e t o h est ing le ( ts o f g ds sol d) arv or sa cos oo	-3, 28 8, 59 7	-3, 45 5, 55 0
Red ion du alit (co of in cid s-b d m alit ) *) uct e t ort sts ent ort o m y ase y	-32 8, 16 8	-28 2, 76 8
Fai alu dju th e b inn ing of th eri od ed stm ent at r v e a eg e p rev ers	-88 3, 09 9	-60 4, 70 7
Fai dju rio alu stm ent at th nd of the d r v e a e e pe	74 1, 43 3	88 3, 09 9
al o f e lim ina tio t th e b inn ing of th eri od Rev ers n a eg e p	36 8, 91 8	41 1, 54 7
Eli mi ion nat s	-43 4, 16 7	-36 8, 91 8
nsl ati dif fer Cu tra rre ncy on enc es	21 86 5 ,	-57 37 0 ,
Bio ica ing eri log l as set nt at the d o f th od s c arr y am ou en e p	3, 33 5, 57 0	2, 93 8, 48 5
ice bi olo ica l as Co st set pr g s	3, 00 6, 43 9	2, 48 1, 67 4
Fai alu dju th nd of the rio d stm ent at r v e a e e pe	74 1, 43 3	88 3, 09 9
Eli mi nat ion s	-43 4, 16 7	-36 8, 91 8
Cu nsl ati dif fer tra rre ncy on enc es	21 86 5 ,	37 0 -57 ,
Bio log ica l as ing set nt s c arr y am ou	3, 33 5, 57 0	2, 93 8, 48 5
Bio ( ton ) ma ss nes
< 1 kg	4, 20 1	4, 73 7
1 k kg 2 g <	7, 92 6	6, 81 1
2 k kg 3 g <	10 48 0 ,	8, 60 8
3 k kg 4 g <	9, 37 7	9, 58 9
4 k g <	28 70 5 ,	18 56 6 ,
lum f b iom a ( ) Vo at ton e o ass se nes	60 68 9 ,	48 31 1 ,

*)
f in cid -ba sed alit * C ost ent ort nt: s o m y p er seg me	20 23	20 22
Far Isla nd oe s	-51 37 9 ,	0
Sco tla nd	-27 6, 78 9	-28 2, 76 8
	-32 8, 168	-28 2, 76 8

	31 De c	31 De c
mb of fis h ( tho nd ) Nu er usa	20 23	20 22
kg < 1	7, 76 5	11 04 3 ,
1 k kg 2 g <	5, 47 2	4, 59 5
2 k 3 kg g <	4, 25 1	3, 52 0
3 k kg 4 g <	2, 73 1	2, 71 7
4 k g <	63 8 5,	3, 87 7
tal mb of fis h a a ( tho nd ) To t se nu er usa	25 85 7 ,	25 75 2 ,
of Nu mb olt lea sed YT D ( tho nd ) er sm re usa
mi rth Far No ng	4, 98 8	6, 85 4
mi Far We st ng	7, 10 7	5, 26 7
mi uth Far So ng	2, 07 6	2, 29 7
Far mi Sco tla nd ng	8, 99 3	11 00 7 ,
tal mb of olt ele d Y ( tho nd ) To TD nu er sm s r ase usa	23 164 ,	25 42 5 ,
sit ivi in Sen ty DK K 1 00 0 ,
Ch e i n d isc 1% nt rat ang ou e +	-18 2, 63 1	-21 2, 68 6
e i isc Ch n d nt rat 1% ang ou e -	20 0, 36 8	23 8, 53 4
Ch e i ale ric 5 D KK ang n s s p e +	40 6, 58 2	35 3, 08 0
Ch e i ale ric 5 D KK ang n s s p e -	-40 6, 58 2	-35 3, 08 0
Ch e i n b iom lum 1% ang ass vo e +	11 19 6 ,	18 21 7 ,
Ch e i n b iom lum 1% ang ass vo e -	-11 19 6 ,	-18 21 7 ,
fo ard ice s in lo On EU R F CA Os e-y ear rw pr
rio d e nd Pe	7.9 0	0 7.5
( for rd) 1 Q wa	9.5 4	8.5 8
( for rd) 2 Q wa	10 .08	8.9 6
( for rd) 3 Q wa	7.4 7	7.1 6
( for rd) 4 Q wa	7.6 9	7.3 1
** S Fi sh Po ol ou rce

Note 5. Segments

	Fis hm l, ea	Fre sh ter wa	Fre sh ter wa	Fa ing rm	Fa ing rm		Sa les
Q 4-2 02 3 – D KK 1, 00 0	oil d f d an ee	Fa Is lan ds roe	Sc otl d an	Fa Is lan ds roe	Sc otl d an	Se rvi ce s	d o the an r	Eli mi tio na ns	Gr ou p
To tal tin op era g r ev en ue s	96 89 8 5,	18 18 8 7,	26 42 4 ,	90 8, 70 4	49 63 2 ,	19 3 7, 75	2, 35 4, 86 5	-3, 12 8, 56 2	1, 56 1, 90 2
	0	0	0	0	0	0	0
De cia tio nd iza tio ort pre n a am n	-6, 186	-24 08 8 ,	-6, 40 8	-40 02 3 ,	-55 109 ,	-27 95 2 ,	-38 8	0	-16 0, 154
Op tin era g e xp en se s	-72 0, 68 6	-11 1, 30 7	-29 33 0 ,	-80 4, 46 8	-42 28 4 ,	-15 6, 89 7	-2, 25 3, 140	3, 07 2, 55 7	-1, 04 5, 55 5
Op tio l E BIT era na	23 9, 02 6	51 79 3 ,	-9, 31 4	64 21 3 ,	-47 76 1 ,	12 90 4 ,	10 1, 33 7	-56 00 6 ,	35 6, 19 2
Fa ir v alu dju stm ts bi olo ica l as set e a en on g s	0	0	0	145 59 8 ,	36 03 6 ,	0	0	0	18 1, 63 4
Inc e f cia tes om rom as so	39 39 0 ,	0	0	0	0	0	0	0	39 39 0 ,
Re e t ve nu ax	0	0	0	-26 46 4 ,	-1, 02 4	0	0	0	-27 48 8 ,
EB IT	27 8, 41 6	51 79 3 ,	-9, 31 4	18 3, 34 7	-12 74 9 ,	12 90 4 ,	10 1, 33 7	-56 00 6 ,	54 9, 72 8
Op tio l E BIT DA era na	24 21 2 5,	88 1 75 ,	-2, 90 6	104 23 6 ,	34 8 7,	40 85 6 ,	10 1, 72 5	-56 00 6 ,	51 6, 34 6

	Fis hm l, ea	Fre sh ter wa	Fre sh ter wa	Fa ing rm	Fa ing rm		Sa les
Q 4-2 02 2 – D KK 1, 00 0	oil d f d an ee	Fa Is lan ds roe	Sc otl d an	Fa Is lan ds roe	Sc otl d an	Se rvi ce s	d o the an r	Eli mi tio na ns	Gr ou p
To tal tin op era g r ev en ue s	79 1, 26 9	16 1, 26 9	37 46 4 ,	1, 06 2, 27 4	27 3, 44 9	20 3, 50 1	2, 38 5, 20 7	-2, 97 4, 62 3	1, 93 9, 80 9
De cia tio nd ort iza tio pre n a am n	-6, 59 1	-20 01 2 ,	-3, 80 5	-25 51 7 ,	-34 61 6 ,	-20 29 6 ,	-12 58 7 ,	0	-12 3, 42 3
Op tin era g e xp en se s	-68 0, 165	-89 03 6 ,	-41 91 8 ,	-78 2, 46 0	-40 8, 51 3	-18 2, 09 8	-2, 26 6, 57 0	3, 01 0, 38 5	-1, 44 0, 37 5
Op tio l E BIT era na	104 51 3 ,	52 22 2 ,	-8, 25 9	25 4, 29 7	-16 9, 68 0	1, 10 7	10 6, 05 0	35 76 2 ,	37 6, 01 1
Fa ir v alu dju stm ts bi olo ica l as set e a en on g s	0	0	0	-17 7, 31 8	-24 8, 73 6	0	0	0	-42 6, 05 4
Inc e f cia tes om rom as so	47 64 6 ,	0	0	160	0	27	56	0	47 88 9 ,
Re e t ve nu ax	0	0	0	-51 02 0 ,	0	0	0	0	-51 02 0 ,
EB IT	15 2, 15 9	52 22 2 ,	-8, 25 9	26 11 9 ,	-41 8, 41 6	1, 134	10 6, 10 6	35 76 2 ,	-53 174 ,
Op tio l E BIT DA era na	11 1, 104	72 23 3 ,	-4, 45 4	27 9, 81 4	-13 5, 06 4	21 40 3 ,	11 8, 63 6	35 76 2 ,	49 9, 43 4

	Fis hm l, ea	Fre sh ter wa	Fre sh ter wa	Fa ing rm	Fa ing rm		Sa les
YT D 2 02 3 – D KK 1, 00 0	d f oil d an ee	Fa Is lan ds roe	Sc otl d an	Fa Is lan ds roe	Sc otl d an	Se rvi ce s	d o the an r	Eli mi tio na ns	Gr ou p
To tal tin op era g r ev en ue s	3, 48 8, 73 5	58 6, 38 8	14 1, 80 3	3, 31 1, 61 4	1, 45 2, 65 2	78 2, 86 5	9, 27 2, 81 7	-11 89 6, 02 6 ,	7, 140 849 ,
	0	0	0	0	0	0	0
De cia tio nd ort iza tio pre n a am n	-26 49 0 ,	-86 92 6 ,	-15 53 3 ,	-12 3, 51 1	-21 9, 09 0	-98 82 2 ,	-28 89 9 ,	0	‐59 9, 272
Op tin era g e xp en se s	-2, 67 0, 78 5	-34 2, 73 2	-11 7, 09 6	-2, 63 7, 31 1	-1, 38 8, 65 3	-64 0, 49 4	-9, 03 3, 52 5	11 83 2, 82 9 ,	‐4, 997 767 ,
Op tio l E BIT era na	79 1, 46 1	15 6, 73 0	9, 174	55 0, 79 3	-15 5, 09 2	43 55 0 ,	21 0, 39 3	-63 19 7 ,	1, 54 3, 81 0
Fa ir v alu dju stm ts bi olo ica l as set e a en on g s	0	0	0	-53 75 0 ,	-87 91 5 ,	0	0	0	-14 1, 66 5
Inc e f cia tes om rom as so	70 68 5 ,	0	0	0	0	0	-33	-1, 34 5	69 30 7 ,
Re e t ve nu ax	0	0	0	-13 06 6 7,	-15 0 77 ,	0	0	0	-15 2, 83 6
EB IT	86 2, 14 6	15 6, 73 0	9, 174	35 9, 97 7	-25 8, 77 7	43 55 0 ,	21 0, 35 9	-64 54 2 ,	1, 31 8, 61 6
Op tio l E BIT DA era na	81 7, 95 0	24 3, 65 6	24 70 7 ,	67 4, 30 3	63 99 9 ,	14 2, 37 2	23 9, 29 2	-63 19 7 ,	2, 14 3, 08 2
INV ES TM EN TS in Pr lan nd uip ert t a nt op p eq me y,	172 194 ,	20 3, 38 6	183 136 ,	105 83 1 ,	124 32 4 ,	63 32 8 ,	188 50 4 ,		1, 04 0, 70 3

	Fis hm l, ea	Fre sh ter wa	Fre sh ter wa	Fa ing rm	Fa ing rm		Sa les
YT D 2 02 2 – D KK 1, 00 0	d f oil d an ee	Fa Is lan ds roe	Sc otl d an	Fa Is lan ds roe	Sc otl d an	Se rvi ce s	d o the an r	Eli mi tio na ns	Gr ou p
To tal tin op era g r ev en ue s	2, 43 3, 49 4	48 0, 06 0	12 3, 85 8	4, 95 0, 57 5	1, 46 9, 82 4	79 3, 49 6	10 58 9, 44 4 ,	-13 71 0, 78 3 ,	12 9, 96 7, 7
De cia tio nd ort iza tio pre n a am n	-25 38 2 ,	-77 146 ,	-13 23 9 ,	-10 0, 02 4	-16 3, 45 4	-89 157 ,	-44 70 0 ,	0	-51 3, 102
Op tin era g e xp en se s	-1, 99 6, 82 3	-21 4, 67 1	-13 4, 45 3	-3, 33 5, 84 6	-1, 53 2, 56 0	-68 9, 65 4	-10 71 7, 27 4 ,	13 70 9, 58 1 ,	-4, 91 1, 70 0
Op tio l E BIT era na	41 1, 28 9	18 8, 24 2	-23 83 4 ,	1, 51 4, 70 5	-22 6, 19 0	14 68 5 ,	-17 2, 53 1	-1, 20 2	1, 70 5, 16 5
Fa ir v alu dju stm ts bi olo ica l as set e a en on g s	0	0	0	168 70 5 ,	109 68 7 ,	0	0	0	70 4, 44 6
e f Inc cia tes om rom as so	57 35 4 ,	0	0	160	0	27	56	-88 0, 40 9	9, 70 8
Re e t ve nu ax	0	0	0	-21 5, 00 1	0	0	0	0	-16 3, 98 1
EB IT	46 8, 64 3	18 8, 24 2	-23 83 4 ,	1, 46 8, 0 57	-11 6, 50 3	14 71 2 ,	-17 2, 47 4	-88 1, 61 1	94 74 5, 5
Op tio l E BIT DA era na	43 6, 67 1	26 5, 38 8	-10 59 5 ,	1, 61 4, 72 9	-62 73 6 ,	10 3, 84 2	-12 7, 83 0	-1, 20 2	2, 21 8, 26 7
INV ES TM EN TS in Pr ert lan t a nd uip nt op y, p eq me	126 60 9 ,	21 6, 85 8	24 4, 07 2	97 96 7 ,	174 62 7 ,	30 9, 58 1	27 66 8 ,		1, 197 38 2 ,

BAKKAFROST | INTERIM REPORT | Q4 2023 and the year 2023 22

Note 6. Capital Commitments

The Group had capital expenditure committed but not provided in these accounts at the date of the Statement of Financial Position of approximately DKK 971 million. DKK 551 million, DKK 141 million, and DKK 79 million relate to the Freshwater, FOF, and Farming segments in the Faroe Islands, respectively. DKK 92 million and DKK 90 million relate to the Freshwater and Farming segments in Scotland, respectively. DKK 11 million and DKK 8 million relate to other investments in the Faroe Islands and in Scotland, respectively.

Note 7. Transactions with Related Parties

Note 5.2 in Bakkafrost's Annual Report for 2022 provides detailed information on related parties' transactions.

Transactions between P/F Bakkafrost and its subsidiaries meet the definition of related party transactions. As these transactions are eliminated on consolidation, they are not disclosed as related party transactions.

Note 8. Fair Value Measurements

As of 31 Dec 2023, the Group held the following classes of assets/liabilities measured at fair value:

DK K 1 00 0 ,		Co st
nd lia bil itie d a t fa ir v alu As set s a s m eas ure e	Fai alu r v e	nt am ou	Lev . 1	Lev . 2	el 3 Lev
Bio log ica l as s ( bio ss) set ma	3, 33 5, 57 0	2, 59 4, 13 7	0	0	3, 33 5, 57 0
d a t fa ir v alu e 3 1/ 12 -20 23 As set s m eas ure	3, 33 0 5, 57	2, 59 13 4, 7	0	0	3, 33 0 5, 57
Lia bil itie ir v d a t fa alu e 3 1/ 12 -20 23 s m eas ure	0	0	0	0	0
Bio log ica l as s ( bio ss) set ma	2, 93 8, 48 5	2, 05 5, 38 6	0	0	2, 93 8, 48 5
As set d a t fa ir v alu e 3 1/ 12 -20 22 s m eas ure	2, 93 8, 48 5	2, 05 5, 38 6	0	0	2, 93 8, 48 5
Lia bil itie ir v d a t fa alu e 3 1/ 12 -20 22 s m eas ure	0	0	0	0	0

All assets/liabilities for which fair value is recognized or disclosed are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.

Level 2: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable).

Level 3: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).

For biological assets, the fair value calculation uses a valuation model (level 3 in the valuation hierarchy) where the value is estimated based on observable market prices per period end.

For more information on these calculations, please refer to Note 4.

For assets/liabilities recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement).

There have been no transfers into or out of Level 3 fair value measurements.

Note 9. Business Combinations

2023

There have not been any new business combinations in 2023.

2022

In a transaction closed on 1 January 2022, Bakkafrost acquired 90% of the shares in Munkebo Seafood A/S. The deal was jointly made with Michael Karlsen, the General Manager of Munkebo Seafood, for many years. The shares were acquired from Paul Lybech, who has been engaged with Munkebo Seafood for almost 25 years. Following the transaction, Michael Karlsen holds 10% of the shares in Munkebo Seafood A/S, while Bakkafrost holds 90%.

Munkebo Seafood A/S has, since its formation in 1974, been engaged in the production of canned fish at the factory in Munkebo in Denmark. Today, the company operates a modern canning facility and offers a wide range of products, of which a more significant share is based on salmon. Bakkafrost has been one of the largest suppliers of raw materials for Munkebo Seafood for the past few years, making Munkebo Seafood a significant extension of Bakkafrost's value chain. With a planned increase in production of salmon over the coming years from Bakkafrost's farms in the Faroe Islands and Scotland, Munkebo Seafood will have a strengthened raw material base, and Bakkafrost will strengthen the ability to increase further the value derived from its salmon by-products.

The operations of Munkebo Seafood will remain unchanged. Munkebo Seafood has around 40 employees, and the products are currently sold mainly within the EU market to retail customers. The key employees of Munkebo AS will continue.

There is considerable spare production capacity for future growth within the current facility.

With the acquisition of Munkebo Seafood, Bakkafrost can now offer a broader range of products. Bakkafrost offers fresh, frozen, and smoked salmon products, and now canned food is added. Bakkafrost has a global sales network, and Munkebo Seafood's products will now be offered on a broader market as a supplement to Bakkafrost's other consumer packaged products.

The fair value of intangible assets has been determined on an estimated fair value. Fair value has been identified in customer relationships employing generally accepted valuation techniques. The market value of the customer relationship is measured at DKK 9.7 million.

The fair value of property, plant and equipment has been determined based on a 3rd party valuation.

BAKKAFROST | INTERIM REPORT | Q4 2023 and the year 2023 23

The fair value of receivables has been determined based on an estimate of an age-distributed debtor list and historical figures on doubtful debtors.

The fair value of the inventory has been determined based on inventory lists, historical sales data, and the subtraction of obsolete goods.

There were no other material new business combinations in 2022.

		Fai lue r va
DK K 1 ,00 0	Boo k v alu e 3 1/1 2/2 021	adj ust nts me	Fai lue r va
Goo dw ill	0	9,7 26	9,7 26
Inta ngi ble set as s	600	0	600
pla nd ipm - in cl. Pro ty, nt a ent IFR S 1 6 per equ	13, 106	0	13, 106
iva ble Acc ts r oun ece s	11, 310	0	11, 310
Inv ent orie s	21, 264	0	21, 264
Oth ent set xcl udi h a nd ban k er c urr as s, e ng cas	2,7 39	0	2,7 39
al a Tot ts sse	49, 019	9,7 26	58, 745
Def ed nd oth tax er t err es a axe s	1,5 11	1,7 54	3,2 65
Lon g-te liab iliti inte t-b ing rm es, res ear	8,7 97	0	8,7 97
Acc ts p ble oun aya	17, 634	0	17, 634
Oth ble er p aya	3,6 60	0	3,6 60
Lia bili ties	31, 602	1,7 54	33, 356
Net ets ass	17, 417	7,9 72	25, 389

Note 10. APM

Alternative Performance Measures

Bakkafrost's financial information is prepared in accordance with international financial reporting standards (IFRS). In addition, the management's intention is to provide alternative performance measures, which are regularly reviewed by the management to enhance the understanding of the company's performance, but not replacing the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. Bakkafrost's experience is that these APM's are frequently used by analysts, investors, and other parties.

These APM's are adjusted IFRS measures, defined, calculated, and used in a consistent and transparent manner over the years and across the company where relevant.

NIBD

Net interest-bearing debt consists of both current and non-current interest-bearing liabilities, less related current and non-current hedging instruments, lease liabilities, financial instruments, such as debt instruments and derivatives and cash and cash equivalents. The net interest-bearing debt is a measure of the Group's net indebtedness that provides an indicator of the overall balance sheet strength. It is also a single measure that can be used to assess both the Group's cash position and its indebtedness. The use of the term net debt does not necessarily mean that the cash included in the net debt calculation is available to settle the liabilities included in this measure. Net debt is an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate interest-bearing liabilities (both current and non-current), derivatives and cash and cash equivalents. A reconciliation is provided below.

	31 de c	31 de c
DK K 1 00 0 ,	20 23	20 22
Cas h a nd h e iva len ts cas qu	41 1, 67 4	71 9, 60 3
Lon and sh ort -te in ter est -be ari g- rm ng de bt	-3, 94 4, 49 8	-3, 38 3, 28 9
t in -be ari de bt Ne ter est ng	-3, 53 2, 82 4	-2, 66 3, 68 6

Operational EBIT

Operational EBIT is EBIT aligned for fair value adjustments, onerous contracts provisions, income from associates and revenue tax.

Operational EBIT is a major alternative performance measure in the salmon farming industry. A reconciliation from EBIT to Operational EBIT is provided below.

	Q 4	Q 4
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
EB IT	54 9, 72 7	-53 174 ,	1, 31 9, 96 1	1, 82 6, 15 3
Fai alu dju f b iolo ica l as stm ent set r v e a s o g s	-18 1, 63 4	42 6, 05 4	14 1, 66 5	-27 8, 39 2
e f iat Inc om rom as soc es	-39 39 0 ,	-47 88 9 ,	-70 65 2 ,	-57 59 7 ,
Rev tax en ue	27 48 9 ,	51 02 0 ,	15 2, 83 6	21 5, 00 1
tio Op l EB IT era na	35 6, 19 2	37 6, 01 1	1, 54 3, 81 0	1, 70 5, 16 5

Operational EBIT per kg

ing O: Fa t F rm se g me n	୓୮ ୲୧୭ ୬ୟ୪ ୉୆ ୍୘ ୊ୟ୰ ୫୧୬ ୊୓ ୬୲ ୣ୰ୟ ୥ ୱୣ୥ ୫ୣ ሺ୥୵ ሻ ୘୭୲ ୟ୪ ୦ୟ୰ ୲ୣୢ ୴୭୪ ୊୓ ୴ୣୱ ୳୫ ୣୱ
ing Fa t S C T: rm se g me n	୬ୟ୪ ୓୮ ୲୧୭ ୉୆ ୍୘ ୊ୟ୰ ୫୧୬ ୗେ୘ ୬୲ ୣ୰ୟ ୥ ୱୣ୥ ୫ୣ ୟ୪ ୦ୟ୰ ୲ୣୢ ୴୭୪ ሺ୥୵ ሻ ୘୭୲ ୗେ୘ ୴ୣୱ ୳୫ ୣୱ
V A P s t: eg me n	୬ୟ୪ ୓୮ ୲୧୭ ୉୆ ୍୘ ୚୅ ୔ ୬୲ ୣ୰ୟ ୱୣ୥ ୫ୣ ୟ୪ ୴୭୪ ୢ୳ୡ ୣୢ ሺ୰ୟ ୧ୟ୪ ሻ ୘୭୲ ୲ୣ୰ ୳୫ ୣୱ ୮୰୭ ୵ ୫ୟ ୥୵
ing d Fa F O V A P: rm an	୲୧୭ ୬ୟ୪ ୫୧୬ ୟ୬ୢ ୓୮ ୉୆ ୍୘ ୊ୟ୰ ୊୓ ୚୅ ୔ ୬୲ ୣ୰ୟ ୥ ୱୣ୥ ୫ୣ ሺ୥୵ ሻ ୟ୪ ୦ୟ୰ ୲ୣୢ ୴୭୪ ୊୓ ୘୭୲ ୴ୣୱ ୳୫ ୣୱ

EBITDA STRIKAST ?

Earnings before interest, tax, depreciation, and amortizations (EBITDA) is a key financial parameter for Bakkafrost's FOF segment. EBITDA before other income and other expenses is defined as EBITDA less gains and losses on disposals of fixed assets and operations and is reconciled in the section Group overview. This measure is useful to users of Bakkafrost's financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciation and amortization expenses related primarily to capital expenditures and acquisitions, which occurred in the past, nonrecurring items, as well as evaluating operating performance in relation to Bakkafrost's FOF segment's competitors. The EBITDA margin is defined as EBITDA before other income and other expenses divided by total revenues.

ROCE

Return on average capital employed (ROCE) is the period's operational EBIT divided by the average capital employed, which is total assets adjusted for total current liabilities. The performance measure is expressed as a percentage and is useful for evaluating Bakkafrost's profitability.

	Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
tio l E Gro -Op BIT up era na	35 6, 19 2	37 6, 01 1	1, 54 3, 81 0	1, 70 5, 16 5
ita l Em loy ed Av Cap era ge p	16 63 4, 38 9 ,	15 88 2, 64 6 ,	16 48 1, 29 1 ,	14 88 9, 91 9 ,
RO CE	2.1 %	2.4 %	9.4 %	11 .5%

Adjusted EPS

Adjusted EPS is based on the reversal of certain fair value adjustments shown in the table below, as it is Bakkafrost's view that this figure provides a more reliable measure of the underlying performance.

	Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 23	20 22	20 23	20 22
fit for th eri od the sh ho lde of Pro to e p are rs
P/ akk afr F B ost	39 2, 02 8	-15 4, 05 0	95 5, 21 6	1, 34 4, 33 0
Fai alu dju of bi stm ent r v e a om ass	-18 1, 63 4	42 6, 05 4	14 1, 66 5	-27 8, 39 2
isio On tra cts ero us con pr ov ns	0	0	0	0
fa ir v alu dju d o Tax stm ent on e a an ne rou s
isio tra cts con pr ov ns	0	-69 11 8 ,	-64 21 6 ,	32 59 2 ,
Ad jus ted ofi t fo r th eri od to pr e p
sha reh old of P/ ak kaf F B t ers ros	21 0, 39 4	20 2, 88 6	1, 03 2, 66 5	1, 09 8, 53 0
Tim eig hte d a be f s ha e-w ve rag e n um r o res
din thr h t he rio d tst ou an g ou g pe	59 26 174 5 , ,	59 09 0, 18 6 ,	59 26 174 5 , ,	59 09 0, 18 6 ,
Ad jus ted rni ha ( bef fa ir ea ngs pe r s re ore
lue ad jus f b iom d p isio tm t o va en ass an rov ns
for tra cts ) (a dju ste d E PS) on con ero us	3.5 6	3.4 3	17 .45	18 .59

Contacts

P/F BAKKAFROST

Bakkavegur 9 FO-625 Glyvrar Faroe Islands Telephone: +298 40 50 00 Fax: +298 40 50 09 Email: bakkafrost@bakkafrost.com Website: www.bakkafrost.com

Appendix

Financial and volumes according to former segmentation pre Q3 2023

Farming segment - Faroe Islands

Farming segment – Scotland

	Q 4	Q 4		YT D	YT D
DK K 1 00 0 ,	20 23	20 22	Ch an ge	20 23	20 22	Ch an ge
Fin cia l an
To tal re ve nue	93 3, 55 5	1, 13 9, 33 0	-18 %	3, 96 0, 45 3	4, 63 2, 58 1	-15 %
EB IT	90 36 6 ,	15 7, 93 7	-43 %	61 3, 02 4	1, 87 2, 17 6	-67 %
tio l E Op BIT era na	19 8, 90 1	38 0, 33 7	-48 %	1, 03 1, 54 1	1, 91 2, 53 4	-46 %
Op tio l E BIT / kg ( DK K) era na	12 .43	19 .73	-37 %	19 .68	28 .68	-31 %
tio l E in Op BIT era na m arg	21 %	33 %		26 %	41 %
Vo lum es
d v olu s ( ) Ha ste tgw rve me	16 00 5 ,	19 27 6 ,	-17 %	52 40 8 ,	66 68 6 ,	-21 %
ing rth - F No arm	10 46 2 ,	32 2 5,	97 %	27 83 1 ,	28 86 4 ,	-4%
ing - F W est arm	3, 88 3	13 95 4 ,	-72 %	15 22 5 ,	28 03 3 ,	-46 %
ing uth - F So arm	1, 66 0	0	10 0%	9, 35 2	9, 78 9	-4%
Sm olt ele d ( tho nd) s r ase usa	5, 16 4	4, 97 2	4%	14 17 2 ,	14 41 7 ,	-2%
ing rth - F No arm	1, 33 8	1, 57 7	-15 %	4, 98 9	6, 85 5	-27 %
ing - F W est arm	2, 90 5	2, 37 4	22 %	7, 28 3	5, 26 5	38 %
- F ing So uth arm	92 1	1, 02 1	-10 %	1, 90 0	2, 29 7	-17 %

	Q 4	Q 4		YT D	YT D
DK K 1 00 0 ,	20 23	20 22	Ch an ge	20 23	20 22	Ch an ge
Fin cia l an
tal To re ve nue	83 87 7 ,	29 8, 47 3	-72 %	1, 61 1, 37 9	1, 44 1, 56 6	12 %
EB IT	19 2, 81 6	-39 8, 94 8	14 8%	16 98 3 ,	-18 9, 44 2	10 9%
Op tio l E BIT era na	-10 3, 80 7	-14 8, 68 9	30 %	-14 0, 94 3	-29 7, 60 6	53 %
Op tio l E / kg ( K) BIT DK era na	-97 .75	-28 .61	-24 2%	-6. 84	-12 .44	% 45
tio l E in Op BIT era na m arg	-12 4%	-50 %		-9%	-21 %
Vo lum es
Ha ste d v olu s ( tgw ) rve me	1, 06 2	5, 19 8	-80 %	20 59 8 ,	23 91 7 ,	-14 %
olt ele d ( tho nd ) Sm s r ase usa pcs	1, 66 7	3, 48 7	-52 %	8, 99 3	11 00 8 ,	-18 %

VAP segment

FOF segment

	Q 4	Q 4		YT D	YT D
DK K 1 00 0 ,	20 23	20 22	ha C nge	20 23	20 22	ha C nge
Fin cia l an
tal To re ve nue	41 6, 03 4	48 2, 60 1	-14 %	1, 60 3, 39 1	1, 70 3, 63 7	-6%
EB IT	12 4, 07 9	86 29 1 ,	44 %	14 1, 36 4	-50 82 4 ,	37 8%
tio l E Op BIT era na	12 4, 10 2	86 29 1 ,	44 %	14 1, 38 7	-50 82 4 ,	37 8%
tio l E / kg ( K) VA P - Op BIT DK era na	19 .49	11 .93	63 %	6.2 4	-1. 90	42 9%
Op tio l E BIT in era na m arg	30 %	18 %		9%	-3%
lum Vo es
mi nsf ed P ( ) Far FO tra to VA tgw ng err	5, 73 5	6, 94 4	-17 %	22 78 7 ,	26 40 1 ,	-14 %
rod d ( ) VA P p tgw uce	6, 36 9	7, 23 1	-12 %	22 65 0 ,	26 74 7 ,	-15 %
Ha ste d v olu sed in VA P rve me s u du cti pro on	36 %	36 %		43 %	40 %
Ha ste d v olu old fre sh/ fro rve me s s zen	64 %	64 %		57 %	60 %

	Q 4	Q 4		Y T D	Y T D
DK K 1 00 0 ,	20 23	20 22	Ch an ge	20 23	20 22	Ch an ge
Fin cia l an
tal To re ve nue	96 5, 89 7	79 1, 27 1	22 %	3, 48 8, 73 3	2, 43 3, 49 4	43 %
EB IT	27 7, 94 8	14 6, 79 9	89 %	86 1, 63 5	46 3, 45 0	86 %
Op tio l E BIT era na	23 9, 02 6	10 3 4, 51	12 9%	79 46 1, 1	28 9 41 1,	92 %
tio l E in Op BIT era na m arg	25 %	13 %		23 %	17 %
Vo lum ( ton ) es nes
To tal Fe ed sol d	39 35 4 ,	32 60 0 ,	21 %	12 5 7, 77	12 84 0 7,	0%
eed in l sa le F - F ter O na	24 52 5 ,	21 01 3 ,	17 %	84 47 4 ,	79 26 2 ,	7%
eed in l sa le S - F ter CT na	14 20 9 ,	10 40 9 ,	37 %	39 84 7 ,	43 85 6 ,	-9%
- F eed ter l sa le ex na	62 0	1, 17 8	-47 %	3, 45 4	4, 72 2	-27 %
tal ed sol d To Fe	39 35 4 ,	32 60 0 ,	21 %	12 7, 77 5	12 84 0 7,	0%
Fis hm l ex l sa le ter ea na	11 93 4 ,	12 49 3 ,	-4%	63 06 3 ,	34 66 7 ,	82 %
Fis h o il e l sa le xte rna	5, 43 8	2, 81 0	94 %	18 92 4 ,	5, 28 5	25 8%
Rec eiv ed ate ria l raw m	53 55 2 ,	46 05 1 ,	16 %	46 7, 03 7	29 7, 81 4	57 %
Fis hm l p rod uct ion ea	13 32 8 ,	10 90 9 ,	22 %	10 1, 97 6	65 39 5 ,	56 %
Fis h o il p rod ion uct	4, 83 8	5, 63 4	-14 %	34 78 6 ,	23 86 2 ,	46 %