Bakkafrost presentation A world-class company in the salmon industry

Scotland 6 June 2023

Bakkafrost - Faroe Islands

Høgni Dahl Jakobsen

CFO

OUR PILLARS AND VALUES

FARMING SALMON IS A VULNERABLE PROCESS

Good health is maintained when:

The salmon is robust
Environment is optimal and threats mitigated
Biological threats are well controlled

SALMON HEALTH HINGES ON UNBROKEN CHAIN OF RESOURCES IN THE VALUE CHAIN • Poor egg and smolt quality • Insufficient quality of assets and technology • Absence of analysis and due action • Lack of processing capacity to handle emergency harvest

Farming process highly exposed to external variables

Unbroken chain of resources required to control process

Glitch in resources can cause material adverse effects, e.g. • Requirement for abundant resources most of the year • Reliance on third party represent risk and complexity

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Challenges normally pile up during autumn months

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VALUE CHAIN INSIGHT – FISHMEAL, -OIL & FEED

COMPETITIVE ADVANTAGE BY RICH ACCESS TO MARINE RAW MATERIAL

Strategically well positioned near fishery

Good sourcing of marine raw material

High marine content = Low Carbon Footprint

Source: Sjømatdatabasen, Bakkafrost

Bakkafrost feed vs. conventional feed

Marine protein Marine oil Veg. Protein Veg. Oil Other

Positive nutritional effect from high-marine feed Bakkafrost feed performance vs. plant-based Bakkafrost Plant-based CO2 Water Land Deforrestation Biodiversity FCR Fish welfare -mort. Product Quality Growth rate Feed price/ (kg feed) Feed cost / (kg salmon) Vitamin D ..than Norwegian average (consumer portions 2021)*

OWNERSHIP OF UNIQUE SALMON STRAINS

PD (Pancreas Disease)
Pigment

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

VALUE CHAIN INSIGHT – HATCHERIES FOR SMOLT CRACKING THE CODE FOR HIGH-QUALITY LARGE SMOLT • Production of large smolt is complicated • First generations in the Faroes did not

54% lower mortality with revised production regime

perform as intended
Production regime for large smolt has been revised and fine tuned on a
number of parameters 54% lower mortality in the seawater phase after revision of large-smolt production regime (2021G vs. 2020G)

2021G Revised 2021G Not revised

Effect of revised smolt production regime on accumulated mortality (2021G)

VALUE CHAIN INSIGHT – HATCHERIES FOR SMOLT IMPROVED GROWTH RATE IN H2 AFTER REVISING SMOLT PRODUCTION REGIME

Growth Rate (TGC)

During the autumn, previous smolt generations had low growth rate, higher mortality and more maturation issues

25.8% increased growth reduced maturation lower mortality in H2 with revised production regime

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

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Jan 2023 for harvested fish

VALUE CHAIN INSIGHT – FARMING INCREASING SURVIVABILITY AND REDUCING SEA LICE High survival rate* • Survival rate ~95% in 2022 improved from 91.76% in 2021 * GSI calculation method 12m rolling Sea lice numbers all time low

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Dropped to 0.28 in 2022 from 0.45 in 2021

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

VALUE CHAIN INSIGHT FARMING SUPPLY VESSELS (A GROUP FUNCTION) vessels, wellboats and now also • Combined treatment for gill-related • Gentle treatment

Good capacity with treatment with unique dual-treatment systems: • Bakkafossur is able to do pre-• Very low mortality • High clearance of sea lice (close to

- issues and sea lice removal

- treatment sorting of fish

100%)

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ONE SALES TEAM COVERING ALL MARKETS

INVESTMENTS IN A STATE-OF-THE-ART VALUE CHAIN IS KEY TO PERFORMANCE 5.6BN DKK OF INVESTMENT IN THE FAROES SINCE 2013

Hatcheries RAS and advanced vaccination technology delivering on the large-smolt strategy
Farming equipment Heavy-duty, "weather-resistant" & predator proof
Fleet of FSV's Improving fish welfare without compromising environment (freshwater and non-chemical)
Feeding systems Technologically advanced
Digitalisation Continuous monitoring fish welfare and optimizing value creation Bakkafrost's high-quality assets has a positive impact

5.6bn DKK invested in the Faroe Islands since 2013

on fish welfare

TODAY

Bakkafrost in the past Odd Eliasen Managing Director

20-YEAR HISTORY: READY, STEADY – GO! RISING FROM THE DUST, GAINING STABILITY AND THEN GROW AND OUTPERFORM

The Faroese salmon industry re-organised after biological meltdown
- Industry consolidation to three operators
- Regulatory and operational framework changed
Successful rebuild of industry to sustainable level of 60-70kt (HOG)