Bakkafrost P/f

Investor Presentation • Aug 23, 2022

Q2 2022

Oslo 23 August 2022

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 Q2 2022

SALES SEGMENT INFORMATION FINANCIALS

MARKETS & OUTLOOK

APPENDIX

Vágsfjørður, South Island, Faroe Islands

HIGHLIGHTS

HIGHLIGHTS
	 Harvest in the Faroe Islands: 13,101 tgw in Q2 2022 (17,561 tgw in Q2 2021)
	 Harvest in Scotland: 6,646 tgw in Q2 2022 (10,634 tgw in Q2 2021)
Operation	Record Feed sales in a 2nd  quarter of 31,243 tonnes in Q2 2022 (27,272 tonnes in Q2 2021)
	 Market balance: Strong markets and tight supply outlook
	 Raw material purchase of 97,610 tonnes in Q2 2022 (59,290 tonnes in Q2 2021)
	 All time high revenue in a quarter: DKK 1,684 million in Q2 2022 (DKK 1,618 million in Q2 2021), increased prices and strong demand
Revenues and Operational EBIT	 All time high operational EBIT** in a quarter of DKK 587 million in Q2 2022 (DKK 407 million in Q2 2021)
Cash Flow	 Cash flow from operations of DKK 542 million in Q2 2022 (DKK 532 million in Q2 2021)
Segments	 Positive operational EBIT in Farming FO, Farming SCT and FOF, negative in VAP
Dividends	 Dividend of DKK 5.14 per share paid for 2021
	*) Including internal sales of 30,231 tonnes in Q2 2022 (26,416 tonnes in Q2 2021)

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

SUMMARY OF THE QUARTER HIGHER OPERATIONAL EBIT DRIVEN MAINLY BY FARMING FAROE ISLANDS

26.52 63.38 1.53 -24.46 6.75 Q2 2021 Q2 2022 OPERATIONAL EBIT/Kg (NOK) Fishmeal, -oil and Feed Farming Faroe Islands Farming Scotland VAP EBITDA margin

	SUMMARY OF THE QUARTER	HIGHER OPERATIONAL EBIT DRIVEN MAINLY BY FARMING FAROE ISLANDS
Q2 2021	Q2 2022	(DKK million)	Q2 22	Q2 21	H1 22	H1 21
		Operating revenue	1,684	1,618	3,323	2,793
OPERATIONAL EBIT/Kg (NOK)		Operational EBITDA	724	534	1,278	888
Farming Faroe Islands		Operational EBIT	587	407	1,004	631
26.52	63.38	Profit for the period	845	428	1,249	836
Farming Scotland		Operational EBITDA margin	43.0%	33.0%	38.5%	31.8%
6.75	8.29	Operational EBIT margin	34.8%	25.2%	30.2%	22.6%
VAP
1.53	-24.46	Operational EBIT/Kg (Farming FO) (NOK)	63.38	26.52	47.73	21.07
		Operational EBIT/Kg (Farming FO and VAP) (NOK)	52.28	26.93	41.70	24.55
EBITDA margin		Operational EBIT/Kg (VAP) (NOK)	-24.46	1.53	-14.30	10.72
Fishmeal, -oil and Feed		Operational EBIT/Kg (Farming SCT) (NOK)	8.29	6.75	-1.47	3.54
16.5%	22.7%	EBITDA margin (Fishmeal, -oil and Feed)	22.7%	16.5%	21.3%	15.8%

Group Operational EBIT DKK 587 million in Q2 2022, compared to DKK 407 million in Q2 2021

SUMMARY OF Q2 2022

SALES

SEGMENT INFORMATION

FINANCIALS

MARKETS & OUTLOOK

APPENDIX

GLOBAL MARKETS HIGHER PRICES Y/Y AND Q/Q

Very high spot prices throughout the quarter

Decreasing so far in Q3 2022

Change in global market [volume harvested and market price]

SUMMARY OF Q2 2022

SALES

SEGMENT INFORMATION

FINANCIALS

MARKETS & OUTLOOK

APPENDIX

FARMING – HARVEST VOLUME DECREASED HARVEST IN FO AND IN SCT – LOWER AVG. HARVEST WEIGHTS

	Harvest Volumes tonnes [HOG]	Q2 22	Q2 21	H1 22	H1 21
North: 37%	FO - North Region	4,801	2,530	14,847	13,952
West: 23%	FO - West Region	3,082	13,135	8,415	15,593
South: 40% 6,646	FO - South Region	5,218	1,897	7,298	2,042
	FO – Total	13,101	17,561	30,560	31,586
	SCT	6,646	10,634	10,619	17,636

Sea water temperatures at 18m depth in the Faroe Islands

FARMING – OPERATIONAL PERFORMANCE

FARMING – STRONG PERFORMANCE IN THE FAROES –	OPERATIONAL PERFORMANCE	WEAKENED IN SCOTLAND
Q2 2021	Q2 2022	Farming FO (DKK million)	Q2 22	Q2 21	H1 22	H1 21
Operational EBIT (mDKK)		Operating revenue	1,140	961	2,338	1,606
		Operational EBIT	617	343	1,088	486
343 80% FO:	617	Operational EBIT margin	54%	36%	47%	30%
SCT: 53 -23%	41
		Farming SCT (DKK million)	Q2 22	Q2 21	H1 22	H1 21
Operational EBIT margin		Operating revenue	467	559	701	881
FO: 36%	54%	Operational EBIT	41	53	-12	46
		Operational EBIT margin	9%	9%	-2%	5%
SCT: 9%	9%	Sea water temperatures at 5m depth in Scotland

Farming SCT (DKK million)	Q2 22 Q2 21 H1 22 H1 21
Operating revenue	467	559	701	881
Operational EBIT	41	53	-12	46
Operational EBIT margin	9%	9%	-2%	5%

SCT: Low harvest volumes Some challenges at some sites Significant improvements during 2022 EBIT/kg for farming (excl. contracts) was 21.99 NOK/kg in Q2

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

	VALUE ADDED PRODUCTS (VAP)
	Q2 2022	(DKK million)	Q2 22	Q2 21	H1 22	H1 21
Q2 2021
		Operating revenue	417	259	835	559
4,667	5,944 27%	Operational EBIT	-108	5	-137	80
		Operational EBIT margin	-26%	2%	-16%	14%
		Farming FO transferred to VAP (tgw)	6,318	4,917	12,995	10,182

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

(DKK million)	Q2 22	Q2 21	H1 22	H1 21
Operating revenue	523	347	965	669
EBITDA	119	57	205	106
EBITDA margin	23%	17%	21%	16%
Feed sold (tonnes)*	31,243	27,272	57,435	50,989

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED INCREASE IN INTERNAL AND EXTERNAL FEED SALES

Raw material Internal feed sale Total feed sale

Market fluctuations

Fishmeal price and fish oil price increased in Q2 2022, compared to the same quarter last year.

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

Source: Holtermann

SUMMARY OF Q2 2022

SALES

APPENDIX

GROUP PROFIT AND LOSS HIGHER REVENUE AND OPERATIONAL EBIT

	GROUP PROFIT AND LOSS HIGHER REVENUE AND OPERATIONAL EBIT
Q2 2021	Q2 2022	(DKK million)	Q2 22	Q2 21	H1 22	H1 21
		Operating revenue	1,684	1,618	3,323	2,793
Revenue (mDKK)		Operational EBITDA	724	534	1,278	888
1,618 4%	1,684	Operational EBIT	587	407	1,004	631
		Fair value adjustment of biological assets	576	176	753	461
Operational EBIT (mDKK)		Onerous contracts	-34	0	-64	0
407 44%	587	Income from associates	-4	3	-1	4
		Revenue tax	-63	-41	-121	-62
Fair value of biomass (mDKK)		EBIT	1,062	546	1,572	1,035
176 226%	576	Net Financial items	-5	-16	-24	-12
		EBT	1,057	530	1,549	1,023
Revenue tax (mDKK)		Taxes	-212	-102	-299	-187
-41 53%	-63	Profit for the period	845	428	1,249	836
		Operational EBITDA margin	43.0%	33.0%	38.5%	31.8%
Profit after tax (mDKK)		Operational EBIT margin	34.8%	25.2%	30.2%	22.6%
428 97%	845	Operational EBIT/kg (Farming Faroe Islands and VAP) (NOK)				24.55
		Operational EBIT/kg (Farming Scotland) (NOK)	8.29	6.75	-1.47	3.54
		EBITDA margin (fishmeal, oil and feed)	22.7%	16.5%	21.3%	15.8%
BAKKAFROST / Q2 2022 PRESENTATION		* Operational EBITDA and EBIT aligned for fair value adjustment of biomass, onerous contracts provisions, income from associates and revenue tax.	52.28	26.93	41.70

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE**

587

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.

BALANCE SHEET

	(DKK million)	Q2 22	End
		4,507	2021 4,496
	Intangible assets	5,091	4,889
5,091	Property, plant and equipment	280	302
	Right of use assets	139	149
	Financial assets Long-term receivables	0	8
	Deferred tax assets	120	215
	Biological assets	3,301	2,448
923	Inventory	923	709
	Financial derivatives	0	0
	Receivables	692	824
692	Other receivables	152	78
	Cash and cash equivalents	508	509
	Total Assets	15,714	14,628
	Equity	10,279	9,348
	Deferred tax and other taxes	1,798	1,590
	Long-term interest-bearing debt	2,775	2,635
	Long-term leasing debt	236	246
65%	Financial derivatives	7	8
	Short-term leasing debt	70	88
	Accounts and other payables	548	714
	Total Equity and Liabilities	15,714	14,628

923
692
	Long-term interest-bearing debt	2,775	2,635
	Long-term leasing debt	236	246
65%	Financial derivatives	7	8
	Short-term leasing debt	70	88
	Accounts and other payables	548	714
	Total Equity and Liabilities	15,714	14,628

CASH FLOW

(DKK million)
	Q2 22	Q2 21	H1 22	H1 21
Cash flow from operations	542	532	693	669
Cash flow from investments	-272	-245	-447	-513
Cash flow from financing	-206	-107	-247	-70
Net change in cash	63	179	-1	86
Cash at the end of the period	508	553	508	553

NIBD was increased by:

-

NIBD was decreased by:

Financing end Q2 2022

• NIBD: DKK 2,267 million
• Bank facilities of EUR 700 million, and an accordion of EUR 150 million.
• Undrawn credit facilities: DKK 2,924 million

Development in NIBD in DKK millions

NIBD and available funding

SUMMARY OF Q2 2022

SALES

SEGMENT INFORMATION

FINANCIALS

MARKETS & OUTLOOK

APPENDIX

Funningsfjørður, Faroe Islands

• -
• • 2022
• Q4 2021
  -

---

- - Columbia

HARVESTED AND SOLD QUANTITY BY ORIGIN
 3% drop in global quarterly harvest volumes	SUPPLY DEVELOPMENT	Q2 2022	Q2 2021	Change %
 7% down when including inventory movements	Norway	272	287
	UK	40	53	-5.2 % -24.3 %
	Faroes	18	23	-20.0 %
 9% drop in European harvest	Iceland	6	8	-22.1 %
	Ireland	5	4	14.3 %
 Norway – Lower than normal incoming biomass in 2022	Total Europe	342	375	-8.9 %
 UK – Historic high volumes in Q2 2021, biological challenges in 2H 2021	Chile	153	135	13.3 %
	Canada	32	37	-12.4 %
	USA	5	3	69.7 %
 Iceland – Biological challenges	Total Americas	190	175	8.8 %
	Other	25	23	8.7 %
 9% increase in American harvest	Total (Harvested quantity)	557	573	-2.8 %
	Inventory movements	2	27	-90.8 %
 Chile exceptionally low same quarter last year	Total (Sold Quantity)	559	599	-6.7 %
 Q2 2022 down 5% drop Q1 2022 and 15% down vs Q4 2021
 Normal variation in North America
 Some impact from site reorganisation in British Columbia				Source: Kontali

SALMON MARKETS, SOLD QUANTITY

Good relative performance in EU/UK

• Positive food service dynamics following release of Covid-19 measures
• High contract share compared to other markets at significant discount to spot prices
• 3% drop in the US
  • Increased availability of fish from Chile
  • Reduced flow of fish from Europe
• Russia impacted by sanctions
• Latin America benefiting from increased availability from Chile
• Generally weaker performance in Asia

Salmon markets, sold quantity (head on gutted - HOG)
			Estimated volumes Q1 comparison		Estimated volumes		FY comparison
	Q2 2022EQ2 2021E		Volume	%	FY 2021E	FY 2020	Volume	%
EU+UK	240	250	-10	-4%	1,156	1,071	85	8%
USA	146	150	-4	-3%	570	505	65	13%
Russia	7	18	-12	-63%	86	79	7	9%
Japan	11	15	-4	-24%	65	64	1	1%
Greater China	21	28	-7	-25%	105	102	3	3%
ASEAN	18	19	-2	-8%	81	73	8	11%
Latin America	44	44	-1	-1%	184	169	15	9%
Ukraine Other markets	3 70	6 69	-3 0	-53% 1%	33 315	24 299	9 17	39% 6%

Comments:

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.

SHORT TERM SUPPLY OUTLOOK

• -
  -
• European drivers in Norway
  -

Change same period last year Change same period last year - Predictions when reporting Q1 2022

AMERICAS

0 50 100 150 200

Source: Kontali

-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

OUTLOOK

Market

• Global harvest decreased 2.8% in Q2 2022 vs Q2 2021
• Global supply for 2022 expected to decrease moderately - decrease 1% for FY 2022
  -

Farming

Harvest

• In 2021, Bakkafrost harvested HOG 96,900 tonnes (Faroe Islands: 67,200 and Scotland: 29,700)
• In 2022, Bakkafrost expects to harvest HOG 103,000 tonnes (Faroe Islands: 68,000 and Scotland: 35,000)

Smolt stocking

• In 2021, Bakkafrost released 25.5 million smolts (Faroe Islands: 14.4 and Scotland: 11.1)
• In 2022, Bakkafrost expects to release 25.7 million smolts (Faroe Islands: 14.9 and Scotland: 10.8)

Contracts

For 2022, Bakkafrost has signed contracts for around 32% of the total expected harvest volumes in the Faroe Islands and Scotland Feed sales are expected to be around 130,000 tonnes in Headlines from Capital Markets Day on 14-15 September

Fishmeal, Oil and Feed

• 2022
• Good sourcing raw material for fishmeal and oil

Business development / Investment programme

• 2021
  • During 2022-2026, DKK 6.2 billion will be invested in the Faroe Islands and Scotland
  • Improve the operation in Scotland
  • Pursue sustainable organic growth in the Faroe Islands and Scotland

SUMMARY OF Q2 2022

SALES

SEGMENT INFORMATION

FINANCIALS & ESG

MARKETS & OUTLOOK

APPENDIX

Applecross 4 expansion, Scotland

• The Strond hatchery has significantly increased smolt capacity
• Large smolts grow strongly after release
• Very low feed conversion rate

Significant increase in smolt capacity in Scotland

Total consent has increased by 11.6% (7,742 tonnes) since the acquisition in Q4 2019

North: 24 sites / 44,415 tonnes consent

• Uist, 5 sites
• Sky & mainland, 6 sites
• Loch Roag, 7 sites
• East Lewis & Harris, 6 sites

South: 20 sites / 30,350 tonnes consent

• Mull and Gigha, 6 sites
• Loch Striven and Arran, 4 sites
• Loch Fyne, 10 sites

-

SCOTLAND – STRATEGIC RATIONALE

• 1. Provides access to the attractive Scottish farming region
  2. Niche and differentiated region
  3. High-quality salmon from Scottish Provenance priced at a premium
• 1. Creating a differentiated global leader in premium salmon
  2. Exposure to two geographies, the Faroe Islands and Scotland
  3. Premium brands

West Strome,Scotland

SCOTLAND – STRATEGIC RATIONALE

3. Potential for significant improvement

• Scottish Salmon profitability to improve over five years through transfer of best practices
• Synergies
• Targeted investment programmes

4. Financially attractive

Acquiring the business at a reasonable value, multiple to the sector and Bakkafrost

Faroe Islands:

• Hatchery capacity (+18m smolt at 500g in 2026) • Processing plant • Treatment vessels
  -

Scotland:

-

-

• Marine Site development The planned investment profile is subject to necessary agreements being secured with responsible authorities

Planned investment profile 2022-2026 (DKK 1,000)

Marine Freshwater & Broodstock FOF Other Processing FSV

• Value chain synchronised at 180kt capacity in 2026
• Extra capacity as "insurance" & flexibility and for growth:
  -
  -
• with biological issues) • Primary processing (market flexibility)
  -
  -
  -

Development in capacity constraints

2026 2022 2018

INVESTING IN SUSTAINABLE GROWTH

150,000 TONNES HARVEST IN 2026, FAROE ISLANDS AND SCOTLAND COMBINED

2022-2026 Capex of DKK 6.2 bn builds 180,000t capacity by 2026

MARKETS & SALES TOTAL SALES TO WESTERN EUROPE, NORTH AMERICA AND ASIA EUROPE INCREASED – EASTERN EUROPE DECREASED

Sales & volume	Total sales of		Q2 2022			Q2 2021			H1 2022			H1 2021
Q2 2021 Q2 2022	salmon by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
	Western Europe	52%	86%	62%	51%	73%	59%	53%	89%	62%	53%	79%	62%
Western Europe	North America	28%	6%	21%	23%	11%	18%	27%	6%	22%	23%	10%	19%
59% 62%	Asia	18%	6%	15%	13%	15%	14%	16%	4%	13%	11%	10%	11%
	Eastern Europe	2%	1%	2%	13%	1%	9%	4%	1%	3%	12%	1%	8%
	Rest of world	0%	1%	0%	0%	0%	0%	0%	0%	0%	1%	0%	0%
North America	Fresh salmon only		Q2 2022			Q2 2021			H1 2022			H1 2021
21% 18%	by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
	Western Europe	39%	86%	57%	48%	70%	56%	42%	90%	56%	46%	77%	58%
	North America	35%	7%	24%	17%	12%	15%	33%	6%	25%	20%	11%	16%
Asia	Asia	25%	6%	18%	19%	18%	19%	21%	4%	16%	18%	12%	16%
15% 14%	Eastern Europe	1%	0%	1%	16%	0%	10%	4%	0%	3%	16%	0%	10%

18%		21%	by markets
	Asia
14%		15%

VAP on contract HOG, Spot

-

DEVELOPMENT IN SUPPLY	AND SOLD QUANTITY BY ORIGIN
	Global Supply of Atlantic Salmon (head on gutted - HOG)
Expected supply growth in 2022
		2017	2018	2019	2020	2021E	2022E
 1% decrease in Global supply	Norway	1.078	1.129	1.198	1.223	1.378	1.361
	UK Ireland	159 15	137 13	171 14	160 14	179 14	172 15
	Iceland	11	12	22	27	35	37
2% decrease in supply from Europe No change in supply from the Americas	Faroes	72	64	78	72	96	91
	Total Europe	1.336	1.355	1.484	1.496	1.703	1.675
	Chile	490	598	601	657	638	646
	Canada	123	131	124	123	128	123
	USA	20	17	19	18	17	16
	Total Americas	633	747	744	798	783	786
	Others	68	65	71	91	109	111
	Total (Sold Quantity)	2.037	2.167	2.299	2.385	2.595	2.573
	Supply growth - Global	2%	6%	6%	4%	9%	-1%
	Supply growth - Europe Supply growth - Americas	4%	1%	10%	1%	14%	-2%
		-3%	18%	0%	7%	-2%	0%
	Salmon Markets (head on gutted - HOG)
		2017	2018	2019	2020E	2021E	2022E
	EU+UK	918	949	1.017	1.071	1.156	1.174
	USA	401	435	468	505	570	596
	Japan	57	54	53	64	65	61
	Russia	70	89	78	79	86	29
	Others	590	640	682	666	718	712
Comments: All figures are in hog-equivalents and thousand tonnes.
Figures represents sold quantity of Atlantic Salmon from each producing country	Total (Sold Quantity)	2.036	2.167	2.298	2.385	2.594	2.572
Source: Kontali

	2017	2018	2019	2020E	2021E	2022E
EU+UK	918	049	1.017	1.071	1.156	1.174
USA	401	435	468	505	570	596
Japan	57	54	53	64	65	61
Russia	70	89	78	79	86	29
Others	590	640	682	666	718	712
Total (Sold Quantity)	2.036	2.167	2.298	2.385	2.594	2.572

Q2 2022 MARKET ENVIRONMENT

-

• Drop in supply

						8,0 5,2 6,0 4,0 2,0 Q2 2020	4,5 Q3 2020	4,0	5,2	6,2
					14,0 12,0 10,0
MARKET CURRENCY	Q2 2022	Q2 2021	Change %				7,6	7,7	8,0
Nasdaq Norway (EUR) UB North East US 14-16lb HOG (USD per kg)	10.58 12.86	6.19 9.77	70.9 % 31.5 %		8,0 D S U 6,0 4,0	6,9
DKK	Q2 2022	Q2 2021	Change %
Nasdaq Norway UB North East US 14-16lb HOG (per kg)	78.72 89.94	46.04 60.28	71.0 % 49.2 %		2,0 -	Q2	Q3

Nasdaq Norway (EUR) Nasdaq Norway (DKK)

2020

2020

2021

2021

2021

2021

DKK

2022

2022

PRICE NORWAY

Source: Kontali

0 10 20 30 40 50 60 70 80 90

• fish sold per week
  -
• -
• -

Fish pool forward price

PRICE MOVEMENT LARGELY IN LINE WITH PROTEIN PEERS

-

-

Source: Statistics Norway, Rabobank

UK consumer prices July 2022 (GBP/kg)

BAKKAFROST / Q2 2022 PRESENTATION Page 40 Source: Bakkafrost, Rabobank

Source: Sainsbury's web site

DEVELOPMENT PER QUARTER

DEVELOPMENT PER QUARTER
	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
(mDKK)	2020 1,134	2020 1,123	2020 1,139	2021 1,176	2021 1,618	2021 1,272	2021 1,488	2022 1,639	2022 1,684
Revenue Operational EBIT	182	103	89	224	407	71	120	418	587
Profit/Loss	472	177	-38	408	428	131	-3	405	845
Harvest FO (tgw)	12,941	11,135	15,957	14,025	17,561	14,937	20,694	17,459	13,101
Harvest SCT (tgw)	7,937	10,476	9,305	7,002	10,634	6,914	5,122	3,973	6,646
Op. EBIT Farming FO & VAP (NOK/kg)	15.34	15.24	12.92	21.48	26.93	13.59	20.11	33.79	52.28
Op. EBIT Farming FO (NOK/kg)	9.79	12.43	5.66	14.10	26.52	12.56	18.29	36.03	63.38
Op. EBIT VAP (NOK/kg)	11.06	5.84	17.31	18.56	1.53	2.89	5.71	-5.65	-24.46
Op. EBIT Farming SCT (NOK/kg)	5.36	-3.89	-8.41	-1.44	6.75	-16.32	-55.95	-17.67	8.29
Equity ratio	69%	68%	66%	68%	67%	67%	64%	64%	65%
NIBD	1,116	1,257	1,753	1,939	1,903	1,986	2,126	2,192	2,267

Revenue (mDKK)	Operational EBIT (mDKK)	Farming FO margin Op. EBIT (NOK/kg)	Farming SCT margin Op. EBIT (NOK/kg)	VAP FO margin Op. EBIT (NOK/kg)
6.000 5.000 4.000 3.000 2.000 1.000	1.600 1.400 1.200 1.000 800 600 400 200	60 50 40 30 20 10	10 5 0 -5 -10 -15	10 5 0 -5 -10 -15
0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022	0 2013 2014 2015 2016 2017 2018 2019 2020 2022 2021	0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022	-20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022	-20 2014 2016 2017 2018 2020 2013 2015 2019 2021 2022

DIVIDEND

Dividend per share in % of adj. EPS*

Dividend per share (DKK)***

Dividend

• A dividend for 2021 of DKK 5.14 per share was paid out in Q2 2022 Competitive return through: Dividends
• Dividend payment equals 50% of adjusted EPS

Dividend policy

• -
  -
• Generally, Bakkafrost shall pay a dividend to its shareholders
• A long-term goal is that 30–50% of adjusted EPS shall be paid out as a dividend

* Adjusted EPS is EPS adjusted for fair value adjustments of biomass and onerous contracts provisions

** Dividend and acquisition of treasury shares

*** Dividend is paid out the following year

Increase in the value of the equity 99% 19% 40% 49%* 49% 46% 50% 50% 50% 0% 59% 50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

BAKKAFROST / Q2 2022 PRESENTATION Page 44

FAROE ISLANDS

• 54,072 inhabitants (July 2022)
• 18 islands 1,387 km2
• Home rule within the Kingdom of Denmark Part of the Danish monetary union, the Danish krone (DKK) Total working force (2021): 31,968

Key sectors (% of wage earners, M7 2022)

• Service/public admin.: ~35%
• Private service: ~32%
• Construction: ~15%
• Fish & aquaculture: ~18%
• Unemployment rate (Apr 2022): 0.9%
• GDP: DKK ~21.2bn (2020)
• GDP/capita: DKK 404,000 (2020)
  • (Norway: DKK 407,643) (2020)

Total export of fish products (2021)

DKK 9,294 million - whereof farmed fish accounts for 48%

TAXES

• Total percent of GDP: 43.8% (2020)
• Corporate tax: 18%
• Farming revenue tax: 5.0% of revenues after 1 January 2019 The tax is applied as follows (IMP ~ International market price):
  • If the IMP is above DKK 36 per kilo, the tax is 5%
  • If the IMP is between DKK 32 and DKK 36 per kilo, the tax is 2.5%
  • If the IMP is lower than DKK 32 per kilo, the tax is 0.5%

Restriction on single foreign ownership of 20% in farming companies

One company may max. control 50% of the licences in the Faroe Islands

BAKKAFROST / Q2 2022 PRESENTATION Page 46