Bakkafrost P/f

Earnings Release • Feb 21, 2023

Q4 2022

Oslo 21 February 2023

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.

SUMMARY OF Q4 2022

MARKETS & SALES FINANCIALS SEGMENT INFORMATION OUTLOOK APPENDIX

HIGHLIGHTS

HIGHLIGHTS
Revenues and	 All-time high full-year revenue of DKK 7,130 million and all-time high full-year Operational EBIT of DKK 1,705 million
Operational EBIT	 All-time high quarterly revenue of DKK 1,940 million and Operational EBIT of DKK 376 million
	 Harvest in the Faroe Islands: 19,276 tgw in Q4 2022 (20,694 tgw in Q4 2021)
	 Harvest in Scotland: 5,198 tgw in Q4 2022 (5,122 tgw in Q4 2021)
Operation	 Feed sales of 32,600 tonnes in Q4 2022 (32,527 tonnes in Q4 2021)
	 Sourcing of marine raw material: of 46,051 tonnes in Q4 2022 (27,322 tonnes in Q4 2021)
Cash Flow	 Cash flow from operations of DKK 382 million in Q4 2022 (DKK 189 million in Q4 2021)
Segments	 Positive operational EBIT in Farming FO, VAP and FOF, negative in Farming SCT
Dividends	 Proposed dividend of DKK 10.00 per share for 2022

*) Including internal sales of 31,422 tonnes in Q4 2022 (31,649 tonnes in Q4 2021)

**) EBIT aligned for fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax

SUMMARY OF Q4 2022

MARKETS & SALES

FINANCIALS SEGMENT INFORMATION

OUTLOOK

APPENDIX

GLOBAL MARKETS HIGHER PRICES Y/Y AND Q/Q

Average spot prices increased y/y and q/q in Q4 2022 (NOK/KG)

Increased spot prices throughout the quarter

Increasing so far in Q1 2023

Change in global market [volume harvested and market price]

• harvest Strong drop in North America

SUPPLY DEVELOPMENT	Q4 2022		Change %
Norway	404	401	0.8 %
Faroes	27	30	-3.0 % -10.9 %
Iceland	12	10	15.0 %
Total Europe	481	481	-11.8 % 0.0 %
Chile	174	181	-3.8 %
			-15.5 % -18.4 %
Total Americas	204	216	-5.7 %
Other	30	34	-10.9 %
			-2.2 % -53.1 %
Total (Sold Quantity)	702	705	-0.3 %
			Source: Kontali
	UK Ireland Canada USA Total (Harvested quantity) Inventory movements	35 3 26 4 715 -12	Q4 2021 36 3 31 4 731 -26

Stable consumption in EU/UK

In line with harvest development in Europe

Strong growth in the US

• Increased import from Europe
• Attractive currency situation

Russia impacted by sanctions

Negative development in Japan and China

ESEAN performing well

Material drop in sales to Ukraine

Salmon markets, sold quantity (head on gutted - HOG)
	Estimated volumes		Q4 comparison		Estimated volumes		FY comparison
Markets	Q4 2022 E	Q4 2021	Volume	%	FY 2022E	FY 2021E	Volume	%
EU	324,200	324,300	-100	0%	1,141,400	1,158,000	-16,600	-1%
USA	150,900	140,200	10,700	8%	586,600	571,700	14,900	3%
	14,800	27,200	-12,400	-46%	48,600	86,000	-37,400	-43%
Russia				-17%	55,100	65,500	-10,400	-16%
Japan	15,800	19,000	-3,200				-2,000	-2%
Greater China	26,400	27,800	-1,400	-5%	103,100	105,100
ASEAN	24,200	22,200	2,000	9%	84,100	80,900	3,200	4%
Latin America	45,300	45,000	300	1%	179,000	184,100	-5,100	-3%
Ukraine	5,900	10,900	-5,000	-46%	18,800	32,700	-13,900	-43%
Other markets	94,600	87,900	6,700	8%	330,600	316,700	13,900	4%
Total all markets	702,100	704,500	-2,400	-0.3 %	2,547,300	2,600,700	-53,400	-2.1 %
Comments:
EU+UK incl. estimates for both European Union (Post-Brexit) & United Kingdom (England, Scotland, Wales & N. Ireland).
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)

Comments:

EU+UK incl. estimates for both European Union (Post-Brexit) & United Kingdom (England, Scotland, Wales & N. Ireland). 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.

SUMMARY OF Q4 2022 MARKETS & SALES FINANCIALS SEGMENT INFORMATION OUTLOOK APPENDIX

GROUP PROFIT AND LOSS HIGHER REVENUE AND OPERATIONAL EBIT

	(DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
	Operating revenue	1,940	1,488	7,130	4,066
	Operational EBITDA	504	270	2,243	1,352
	Operational EBIT	376	120	1,705	821
	Fair value adjustment of biological assets	-426	-140	278	435
	Onerous contracts	0	0	0	0
	Income from associates	48	18	58	30
	Revenue tax	-51	-49	-215	-141
	EBIT	-53	-52	1,826	1,145
-426	Net Financial items	-88	8	-136	-7
	EBT	-141	-44	1,690	1,138
	Taxes	-13	41	-346	-174
	Profit for the period	-154	-3	1,344	964

* Operational EBITDA and EBIT aligned for fair value adjustment of biomass, onerous contracts provisions, income from associates and revenue tax.

20.6% 14.0% Fishmeal, -oil and Feed EBITDA margin

	Q4 22	Q4 21	YTD 22	YTD 21
Operational EBITDA margin	26.0%	18.2%	31.5%	33.2%
Operational EBIT margin	19.4%	8.0%	23.9%	20.2%
Operational EBIT/Kg (Farming FO) (NOK)	27.56	18.29	38.54	18.49
Operational EBIT/Kg (Farming FO and VAP) (NOK)	33.81	20.11	37.52	20.93
Operational EBIT/Kg (VAP) (NOK)	16.67	5.71	-2.55	7.41
Operational EBIT/Kg (Farming SCT) (NOK)	-39.96	-55.95	-16.72	-11.56

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE**

Operational EBIT* (mDKK)

Adjusted EPS** (DKK)

*) 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.

BAKKAFROST / PRESENTATION Page 12

BALANCE SHEET

	(DKK million)	Q4 22	End 2021
		4,509	4,496
	Intangible assets	5,647	4,889
5,647	Property, plant and equipment	439	302
	Right of use assets	234	149
	Financial assets Long-term receivables	0	8
	Deferred tax assets	336	215
	Biological assets	2,938	2,448
1,074	Inventory	1,074	709
	Financial derivatives	8	0
	Receivables	809	824
809	Other receivables	168	78
	Cash and cash equivalents	720	509
	Total Assets	16,882	14,628
	Equity	10,396	9,348
	Deferred tax and other taxes	1,826	1,590
	Long-term interest-bearing debt	3,383	2,635
	Long-term leasing debt	353	246
	Financial derivatives	3	8
62%	Short-term leasing debt	106	88
	Accounts and other payables	814	714
	Total Equity and Liabilities	16,882	14,628

1,074
809
	Long-term interest-bearing debt	3,383	2,635
	Long-term leasing debt	353	246
62%	Financial derivatives	3	8
	Short-term leasing debt	106	88
	Accounts and other payables	814	714
	Total Equity and Liabilities	16,882	14,628

CASH FLOW

Q4 2021	Q4 2022	(DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
		Cash flow from operations	382	189	1,202	1,125
189 193	382	Cash flow from investments	-570	-289	-1,255	-1,112
		Cash flow from financing	339	237	263	30
		Net change in cash	151	136	210	42
		Cash at the end of the period	720	509	720	509

NET INTEREST-BEARING DEBT (NIBD) NIBD INCREASED DURING Q4 2022

NIBD was increased by:

NIBD was decreased by:

Financing end Q4 2022

• NIBD: DKK 2,664 million
• Bank facilities of EUR 700 million, and an accordion of EUR 150 million.
• Undrawn credit facilities: DKK 2,542 million

Development in NIBD in DKK millions

NIBD and available funding

Q4 2022 ESG UPDATE

Strenghtening freshwater treatment capacity in the Faroes Bakkafrost's new 10,000m3 hybrid-powered well-boat Bakkafossur was delivered. Hereby the freshwater treatment capacity in the Faroe Islands is significantly improved.

Engaging with suppliers to reduce carbon footprint

At Bakkafrost Supplier Day Engaging with suppliers to advance sustainable practices in the supply chain and build robust partnerships with suppliers to ensure progress towards reduction in carbon reduction.

Responsibility and protecting local environment

feed barge at our Portree site in Scotland, that sank during the storm Arwen.

In close cooperation with experts and authorities Bakkafrost successfully recovered the barge preventing any environmental impact

FARMING – HARVEST VOLUME AVERAGE HARVEST WEIGHT INCREASED IN SCOTLAND

	Harvest Volumes tonnes [HOG]	Q4 22	Q4 21	YTD 22	YTD 21
North: 28%	FO - North Region	5,322	9,268	28,864	26,082
West: 72%	FO - West Region	13,954	8,904	28,033	32,253
					8,883
South: 0% 5,198	FO - South Region	0	2,522	9,789
	FO – Total	19,276	20,694	66,686	67,217
	SCT	5,198	5,122	23,917	29,672

Sea water temperatures at 18m depth in the Faroe Islands

STRONG PERFORMANCE IN THE FAROES

Farming FO (DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
Operating revenue	1,139	1,111	4,633	3,477
Operational EBIT	380	282	1,913	904
Operational EBIT margin	33%	25%	41%	26%
Farming SCT (DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
Operating revenue	298	218	1,442	1,455
Operational EBIT	-149	-214	-298	-249
Operational EBIT margin	-50%	-98%	-21%	-17%
Sea water temperatures at 5m depth in Scotland

Farming SCT (DKK million)			Q4 22 Q4 21 YTD 22 YTD 21
Operating revenue	298	-218	1.442	1,455
Operational EBIT	$-149$	-214	$-298$	$-249$
Operational EBIT margin	-50%	-98%	-21%	$-17%$

FARMING – OPERATIONAL PERFORMANCE

IMPROVEMENTS IN BOTH REGIONS

• FO: Good biological development Low sea lice levels Improved biological KPI in H2
• SCT: Seasonal biological challenges causing high mortality Reducing harvest volumes and biomass Low sea lice levels Increased average harvest weight

Source: Scottish Government's Fish Health Inspectorate

Threshold for reporting: Mortality above 1% per week and fish bigger than 750g. First 6 weeks post transfer from fresh water to sea water are not required to be reported. Reported to FHI one week after the mortality event.

BAKKAFROST SCOTLAND BIOLOGICAL DEVELOPMENT

Avg. harvest weight Average harvest weight 2020-2023

Week 1-6: 2022 vs 2023

2022 2023

HATCHERIES IN SCOTLAND APPLECROSS PROGRESSING

• AP 2 to AP 4 ult. Q 1
• 200-300 gr. ult. Q2-2023

VALUE ADDED PRODUCTS (VAP) HIGHER VOLUMES AND HIGHER COST OF RAW MATERIAL

Volumes (tonnes) Revenue (mDKK) Operational EBIT (mDKK) Operational EBIT/kg (NOK) % of harvest volume for VAP* 6,603 10% 7,231 359 34% 483 28 86 5.71 16.67 31% 36% 207% 192%

	VALUE ADDED PRODUCTS (VAP)
Q4 2021	Q4 2022	(DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
		Operating revenue	483	359	1,704	1,185
	10%
6,603	7,231	Operational EBIT Operational EBIT margin	86 18%	28 8%	-51 -3%	120 10%
		Farming FO transferred to VAP (tgw)	6,944	6,493	26,401	21,974

FISHMEAL, OIL AND FEED (FOF) HIGHER EBITDA AND HIGHER SALES OF FISHMEAL AND FISH OIL

(DKK million)	Q4 22	Q4 21	YTD 22	YTD 21
Operating revenue	791	433	2,433	1,659
EBITDA	110	89	436	306
EBITDA margin	14%	21%	18%	18%
Feed sold (tonnes)*	32,600	32,527	127,840	128,489

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED UNCHANGED INTERNAL FEED SALES AND INCREASE EXTERNAL FEED SALES

Fishmeal and fish oil price index in DKK (Q1 2015 = 100)

Source: Holtermann

Market fluctuations

Fishmeal and fish oil prices slightly decreased in Q4 2022. The price level is last year.

SUMMARY OF Q4 2022

MARKETS & SALES

FINANCIALS

SEGMENT INFORMATION

OUTLOOK

APPENDIX

Nevið, Lambavík, Faroe Islands

EXPECTED HARVEST GROWTH OF 2.3% IN 2023

Change same period last year - Predictions when reporting Q3 2022

Source: Kontali

OUTLOOK

Market

Global harvest:

• Decreased 2% in Q4 2022 vs Q4 2021
• 2.3% global supply growth expected in 2023

Farming

Harvest:

Expected harvest of 98k GWT (Faroe Islands: 68k and Scotland: 30k)

Smolt release:

In 2023, Bakkafrost expects to release 25.6 million smolts (Faroe Islands: 16.0 and Scotland: 9.6)

Contracts

For 2023, Bakkafrost has signed contracts for around 23% of the total expected harvest volumes

Fishmeal, Oil and Feed

• Feed sales are expected to be around 130,000 tonnes in 2022 Fishmeal and fish oil volumes are expected to be similar in 2023 as in 2022 Headlines from Capital Markets Day on 14-15 September 2021: During 2022-2026, DKK 6.2 billion will be invested in

Business development / Investment programme

• • the Faroe Islands and Scotland
• Improve the operation in Scotland
• Pursue sustainable organic growth in the Faroe Islands and Scotland
• Next Capital Markets Day 6-7 June 2023 in Scotland