Bakkafrost P/f

Investor Presentation • Jun 6, 2023

Bakkafrost presentation A world-class company in the salmon industry

Scotland 6 June 2023

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Sustainability Group Sustainability Director

Tordis Poulsen

SUSTAINABLE GROWTH IS OUR RESPONSIBILITY

our production of sustainably produced healthy salmon.

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SALMON IS A VERY RESOURCE EFFICIENT SOURCE OF HEATHY PROTEINS

TCFD CLIMATE-RELATED SCENARIO ANALYSIS PREPARING FOR THE FUTURE

Value chain stage	Risk description	Early transition	Late transition Hot house
Upstream	Sourcing feed inputs for Havsbrún (soy and marine proteins)
	Electricity supply
	Carbon pricing
Direct operations	Harmful algal blooms	D
	Extreme weather events	D	0
Downstream	Use of air transportation	10-1
Key: High= ■ Medium= Low=

BAKKAFROST HAS AMBITIOUS CARBON REDUCTION TARGETS

HEALTHY ENVIRONMENT

REDUCING OUR SCOPE 3 CARBON FOOTPRINT BY TAKING CONTROL OF AIR TRANSPORT

Transport by air vs. sea/land

HEALTHY LIVING

REDUCING SCOPE 3

Bakkafrost Supplier Day

Mobilizing strategic suppliers on sustainability topics, including climate change and carbon reduction.

CIRCULAR ECONOMY

OUR BIOGAS PLANT REDUCES CARBON FOOTPRINT

Now also converting food waste to renewable energy

HEALTHY ENVIRONMENT WE ARE COMMITTED TO REACH OUR CARBON REDUCTION TARGETS

Capex 2024-2028 includes

355 mDKK

dedicated for Energy Transition

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Capex 2024-2028 Regin Jacobsen CEO

SUMMARY OF RECENT INVESTMENTS

Examples

Grønarók

FarCargo

4.0bn DKK invested past 5 years (Bakkafrost Group)

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

~ 6.3BN PLANNED INVESTMENTS 2024-2028 • Cost-efficient broodstock (repurposing old hatcheries) • Increase feed capacity, including storage and logistics • Optimization of existing farming sites • Improved vessel capacity • Energy Transition

REDUCE BIOLOGICAL RISK, IMPROVE EFFICIENCY AND INCREASE ORGANIC GROWTH

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• Harvest and processing plant • Site expansions • Vessel capacity for transport and treatment • Marine Site development
  • Offshore postponed

Scotland:

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FRESHWATER

INCREASED HATCHERY CAPACITY IN BOTH REGIONS – MORE COST-EFFICIENT BROODSTOCK IN THE FAROE ISLANDS

Faroe Islands Scotland

Broodstock for broodstock

Expansion 5-6 of Applecross 5-6 hatchery 7m smolt at 500g 29,300m³ capacity – scaling production from 2024 – scaling production from 2027

Completed: 2024

HEALTHY LIVING

Completed: 2027

facility at Skálavík is changed. Only one facility (hatchery) is included in the 2024-2028 capex plan in one of these locations.

New hatchery at Fairlie 8m smolt at 500g 32,300m³ capacity

Completed: 2026

MARINE

PICKING LOW-HANGING FRUITS TO ENSURE COST-EFFICIENT ORGANIC GROWTH • Site optimization • New sites within existing licenses • Maintenance

Faroe Islands Scotland

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• Offshore farming on hold

• New barges • New sites & site extensions • Maintenance

HEALTHY LIVING

Consent in Scotland, utilization and harvest volume (tonnes)

MARINE – FAROE ISLANDS PICKING LOW-HANGING FRUITS TO ENSURE COST-EFFICIENT ORGANIC GROWTH

Growing with optimization and "new technology"

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	Growing with optimization and "new technology" (Closed/semi-closed, submersed, current deflectors)
• Further	reduction of sea lice Marginal cost/kg to increase harvest Offshore Existing sites in the Faroes

HARVEST & PROCESSING

Arnish Harvest Station Ardyne Harvest Station

104 tonnes/ day gutted wt

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• Two processing facilities • Separate harvest stations • Wide geographical spread of marine sites, 1km - 400KM from farm to harvest • Current Capacity
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2024-2028 Capex

• New highly automated efficient high quality focused processing • Swim through harvest • Latest processing technology • Automated packing & palletisation • Primary & Secondary processing • Build capacity in line with • Meet market requirements • Green energy opportunity
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• business growth

Faroe Islands:

FISHMEAL, -OIL AND FEED

INCREASING ANNUAL FEED PRODUCTION CAPACITY TO 275KT, WHILE PREPARING FOR 400KT

ENERGY TRANSITION

355M DKK DEDICATED TO REDUCING CARBON EMISSION

- The fishmeal, -oil and feed production accounts for most of our CO2 emission, followed by the hatcheries and FSV's • To reach our CO2 reduction targets, 108m DKK have been allocated a energy transition project • The project evaluates the feasibility of available

• technologies and drives the implementation

HEALTHY LIVING

Pyrolysis

FURTHER UPLIFT IN CAPACITY AND BETTER BALANCE ACROSS THE VALUE CHAIN VALUE CHAIN SYNCRONISED AT 200KT HOG HARVEST CAPACITY IN 2028 • Extra capacity as "insurance" & flexibility and for growth: • Broodstock (flexibility and future growth) • Smolt (flexibility and future growth) • Vessel transportation (flexibility and future growth) • Primary processing (market flexibility) • Transportation (flexibility and future growth)

²⁰²⁶ Value chain synchronised at 200kt capacity in 2028

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Financial position & Tax Høgni Dahl Jakobsen CFO

STRONG FINANCIAL POSITION

• Bakkafrost has relatively low debt compared to listed peers in Norway

Equity Ratio Source: InFront Return on Equity & Capital Employed Source: InFront

Financing

• Sustainability linked bank facilities of EUR 700
• million, and an accordion of EUR 150 million. Maturity in Q1 2028, extendable to Q1 2029
• Sustainability KPI's:

• • Equity Ratio >35% & Interest Cover 2:1

NIBD and available funding

LOCAL FOOTPRINT BAKKAFROST IS A SIGNIFICANT CONTRIBUTOR TO THE LOCAL COMMUNITIES (2022)

THE FAROESE REVENUE TAX HAS BEEN ADJUSTED EFFECTIVE FROM 1. AUGUST 2023

Main changes

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			HEALTHY LIVING
BAKKAFROST'S NEW SEGMENTS
7 segments: • FOF
• Freshwater FO
• Freshwater SCT
• Farming FO
• Farming SCT • Services
• Sales & Other

7 segments:

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Market & Sales

Símun P. Jacobsen Group Sales Director

MARKET OUTLOOK

SALES & MARKETING

CLEAR BRANDING STRATEGY, FOCUSING ON THE CORPORATE BRAND AND ORIGIN

• One common main brand in B2B: BAKKA SALMON From the Faroe Islands Or From Scotland • Changed branding strategy has increased flexibility and yields synergy effects

SALES & MARKETING ONE SALES ORGANISATION = MANY BENEFITS

SALES & MARKETING

SIMILAR BRAND PREMIUMS IN BOTH REGIONS, BUT SOME VALUE IS LOST IN SCOTLAND

Comparing price achievement reveals issues and opportunities • Both regions achieve significant brand premium • Faroes gains premium on weight – Scotland losses due to lower harvest weights

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HEALTHY LIVING

Opportunities in Scotland

• and increase harvest weights
• Improved biology will reduce downgrades • Biology improvements combined with the new processing facility increases value retention on contract/VAP

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One Company

Heini S. Kristiansen Group HR Director

ONE COMPANY ORGANISATIONAL DESIGN – SIMPLER AND SLIMMER THAN BEFORE

Management and functional alignment

Group admin and support functions

Havsbrun	Centre of excellence	Centre of excellence	Group FSV		Group Harvest & VAP		Group Sales
		Core systems		Core systems			Systems & Process

Goal: 'One Company' and 'One Team' with an aligned business strategy

ONE COMPANY OUR PEOPLE

MARKET OUTLOOK Applecross The future lies ahead

HEALTHY LIVING

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Q&A

DISCLAIMER

This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements.

No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document.