Bakkafrost P/f

Regulatory Filings • Sep 30, 2022

UPDATE on Revenue tax on salmon farming in the Faroe Islands

UPDATE on Revenue tax on salmon farming in the Faroe Islands

With reference to the press release from Bakkafrost on 28 September 2022

mentioning expected changes to the Revenue Tax in the Faroe Islands.

(ref. NewsWeb (oslobors.no) (https://newsweb.oslobors.no/message/572197))

Today, the Faroese Government has officially presented to the Parliament a

proposal to adjust the Faroese Revenue Tax on the salmon farming industry. This

proposal includes three important changes to the current Revenue Tax system,

originally introduced in 2014:

· Changing the number of applicable tax rates from 3 to 5

· Increasing the salmon price thresholds that determine when each tax rate is

applicable

· Linking the salmon price threshold to the average production cost for the

Faroese salmon industry, which will be assessed annually.

Overview of the changes:

Current Revenue Tax Proposed

Revenue Tax

Applicable Applicable when avg. Applicable

tax rate monthly salmon spot when avg.

price is monthly salmon

spot price is

Higher than. ..and less

than

0.5% Less than 32 DKK/kg Production

cost*

2.5% 32-36 DKK/kg Production Production

cost* cost* + 5

DKK/kg

5.0% 36 DKK/kg Production Production

cost* + 5 cost* + 15

DKK/kg DKK/kg

7.5% Production Production

cost* + 15 cost* + 30

DKK/kg DKK/kg

10.0% Production

cost* + 30

DKK/kg

* The thresholds are based on the average annual production cost for the Faroese

salmon industry. For 2023, an average production cost of 39.15 DKK/kg will be

applied.

For 2023, the proposed change means that the revenue tax rates would be:

· 0.5% if the salmon spot price is less than 39.15 DKK/kg (approx. 55 NOK/kg)

· 2.5% if the salmon spot price is between 39.15 and 44.15 DKK/kg (approx. 55

-62 NOK/kg)

· 5% if the salmon price is between 44.15 and 54.15 DKK/kg (approx. 62-76

NOK/kg)

· 7.5% if the salmon price is between 54.15 and 69.15 DKK/kg (approx. 76-97

NOK/kg)

· 10% if the salmon price is above 69.15 DKK/kg (approx. 97 NOK/kg)

The proposed changes, outlined in this press release, have not yet been passed

by the Parliament.

Contacts:

· Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01 (mobile)

· Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 23 50 60 (mobile)

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.