Bakkafrost P/f

Investor Presentation • Feb 23, 2021

Q4 2020

BAKKAFROST GROUP Glyvrar 23 February 2021

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 2020

MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

Klaksvík, Faroe Islands

Operation	 Harvest in the Faroe Islands (FO): 15,957 tgw in Q4 2020 (17,930 tgw in Q4 2019)  9,305 tgw in Q4 2020 (7,925 tgw in Q4 2019) Harvest in Scotland (SCT):  Feed sales of 30,885 tonnes in Q4 2020 (28,398 tonnes in Q4 2019)  of 71,887 tonnes in Q3 2020 (35,180 tonnes in Q4 2019) Raw material purchase
Revenues and Operational EBIT	 Revenues of DKK 1,183 million in Q4 2020 (DKK 1,605 million in Q4 2019)  Operational EBIT** of DKK 89 million in Q4 2020 (DKK 415 million in Q4 2019)
Cash Flow	 Cash flow from operations of DKK -107 million in Q4 2020 (DKK -150 million in Q4 2019)
Segments	 Positive operational EBIT for FO segments, but negative for SCT
Dividends	 Proposed dividend of DKK 3.65 per share for 2020
	) Including internal sales of 29,516 tonnes in Q4 2020 (20,778 tonnes in Q4 2019) *) EBIT aligned for fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax

SUMMARY OF THE QUARTER

Segments y/y	(DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
(FO)* Farming/VAP	Operating revenue	1,183	1,605	4,696	4,511
28.25 12.92 (Q4 2019) (Q4 2020)	Operational EBITDA	215	544	1,068	1,635
	Operational EBIT	89	415	621	1,325
(SCT)* Farming	Profit for the period	-38	220	463	802
3.09 -8.41 (Q4 2020) (Q4 2020)	Operational EBITDA margin	18.2%	33.9%	22.7%	36.2%
	Operational EBIT margin	7.5%	25.9%	13.2%	29.4%
VAP*
11.72 17.05 (Q4 2019) (Q4 2020)	Operational EBIT/Kg (Farming FO) (NOK)	5.66	25.49	12.69	25.44
	Operational EBIT/Kg (Farming FO and VAP) (NOK)	12.92	28.25	16.65	26.91
FOF**	Operational EBIT/Kg (VAP) (NOK)	17.05	11.72	8.39	5.04
17.1% 13.4% (Q4 2019) (Q4 2020)	Operational EBIT/Kg (Farming SCT) (NOK)	-8.41	3.09	-0.99	3.09
	EBITDA margin (Fishmeal, -oil and Feed)	13.4%	17.1%	14.6%	19.9%

Group Operational EBIT was DKK 89 million in Q4 2020, compared to DKK 415 million in Q4 2019

* Operational EBIT in NOK/kg

** EBITDA margin

SUMMARY OF Q4 2020

MARKETS AND SALES

SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK

APPENDIX

Fuglafjøður, A57 and Havsbrún and GøtuvíkA25 in the background Faroe Islands

MARKETS & SALES SALES TO WESTERN EUROPE INCREASED – OTHER MARKETS DECREASED

Western Europe North America Asia 59% (Q4 2020) 43% (Q4 2019) 20% (Q4 2020) 23% (Q4 2019) 8% (Q4 2020) 22% (Q4 2019) Sales & volume (FO only) Total sales of salmon Fresh salmon only by markets

Eastern Europe 12% (Q4 2020) 12% (Q4 2019)

Harvest volumes used in the VAP

	Q4 2020			Q4 2019		YTD 2020			YTD 2019
by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	59%	96%	74%	43%	93%	59%	56%	90%	70%	44%	93%	50%
North America	20%	3%	14%	23%	4%	17%	24%	5%	17%	24%	4%	21%
Asia	8%	0%	5%	22%	2%	15%	12%	1%	7%	23%	2%	21%
Eastern Europe	12%	0%	7%	12%	1%	9%	8%	0%	5%	9%	1%	8%
Rest of the world	0%	1%	1%	0%	0%	0%	0%	3%	1%	0%	0%	0%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%

Fresh salmon only by Q4 2020		Q4 2019				YTD 2020			YTD 2019
markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	38%	96%	70%	28%	93%	53%	31%	90%	64%	25%	93%	37%
North America	32%	3%	16%	29%	4%	19%	38%	5%	20%	29%	4%	25%
Asia	13%	0%	6%	27%	2%	17%	19%	1%	9%	33%	2%	28%
Eastern Europe	17%	0%	8%	16%	1%	10%	12%	0%	5%	12%	1%	10%
Rest of the world	0%	1%	1%	0%	0%	0%	0%	3%	2%	0%	0%	0%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%

Average spot prices decreased in Q4 2020 (NOK/KG)

Spot prices were lower in Q4 2020 (mainly a Covid-19 effect)

Global harvest grew 11% y/y

Spot prices (NASDAQ) on superior 4-5 [NOK/kg HOG]

Change in global market [volume harvested and market price]

Global Harvest growth of 11%

Europe harvest up 9%

• Strong growth conditions in Norway
• UK Low proportion of 2019 harvest in Q4

Americas harvest grew 16%

• 20% increase in Chile
• Good productivity and high average harvest weights
• Minor absolute changes in North America

Norway 365 335 8.8 % UK 45 38 16.9 % Faroes 21 24 -12.2 % Iceland 10 8 23.3 % Ireland 3 3 -1.5 % Total Europe 443 408 8.5 % Chile 196 163 20.4 % Canada 32 33 -5.7 % USA 5 5 -3.8 % Total Americas 232 201 15.5 % Other 26 24 9.7 % Total (Harvested quantity) 701 633 10.8 % Inventory movements -17 -11 54.8 % Total (Sold Quantity) 684 622 10.0 %

Supply Development Q4 2020 Q4 2019 Change

Inventory

Build-up primarily relates to Chile and to some extent Norway

Source: Kontali

Global Supply growth of 10%

EU/UK grew 13%

• Consuming higher proportion of EU harvest
• Covid-19 driven logistic issues to remote markets, and reduced demand from remote markets

USA grew 10%

Demand boosted by low prices for Chilean salmon

Greater China dropped 39%

• Logistical challenges for export of Chilean salmon
• Covid-19 scare related to fresh salmon in China

Latin America grew 20%

Significant increase in Latin America

Salmon markets, sold quantity (head on gutted - HOG)

	Estimated volumes		Q4 comparison		Estimated volumes		FY comparison
Markets	Q4 2020E	Q4 2019	Volume	%		FY 2020E	FY 2019	Volume	%
EU+UK	313,900	277,700	36,200	13%		1,070,800	1,017,300	53,500	5%
USA	132,500	120,400	12,100	10%		505,800	468,600	37,200	8%
Russia	27,700	25,700	2,000	8%		78,500	78,600	-100	0%
Japan	19,300	14,900	4,400	30%		64,200	52,800	11,400	22%
Greater China	21,500	35,000	-13,500	-39%		101,900	133,700	-31,800	-24%
ASEAN	20,400	18,500	1,900	10%		71,900	72,100	-200	0%
Latin America	52,100	43,500	8,600	20%		168,300	163,600	4,700	3%
Ukraine	9,400	6,500	2,900	45%		23,500	20,600	2,900	14%
Other markets	87,200	79,500	7,700	10%		303,700	294,500	9,200	3%
Total all markets	684,000	621,700	62,300	10.0 %		2,388,600	2,301,800	86,800	3.8 %

Comments:

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

Source: Kontali

SHORT TERM SUPPLY OUTLOOK LIMITED SUPPLY GROWTH IN 2021 – ESPECIALLY IN H2

Expectation of limited global supply growth in 2021

• Stable growth around 8% in Europe
• Release of inventory primarily during H1 2021
• Tight supply growth in H2 2021
• 2021 drop in Americas driven by Chile
• Temporary low smolt release 2H 2019/1H 2020

BAKKAFROST / Q4 2020 PRESENTATION Page 11

SUMMARY OF Q4 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

FARMING – HARVEST VOLUME DECREASED HARVEST IN THE FAROE ISLANDS – INCREASED AVG. SMOLT SIZE

Harvest Volumes tonnes [HOG]	Q4 2020	Q4 2019	YTD 2020	YTD 2019
FO - North Region	6,486	0	31,029	18,252
FO - West Region	6,965	13,155	14,415	32,210
FO - South Region	2,506	4,775	5,256	6,722
FO – Total	15,957	17,930	50,700	57,184
SCT	9,305	7,925	34,986	7,925
Total (FO & SCT)	25,262	25,855	85,687	65,109

Sea water Temperatures at 18m depth in the Faroe Islands

FARMING – OPERATIONAL PERFORMANCE

REVENUE AND OPERATIONAL EBIT DECREASED IN THE FAROE ISLANDS

Faroe Islands (FO) Operational EBIT (mDKK) Operational EBIT margin (%) Operating revenue (mDKK) 63 (Q4 2020) 338 (Q4 2019) 10 (Q4 2020) 36 (Q4 2019) 603 (Q4 2020) 945 (Q4 2019)

Scotland (SCT)

Compared to the Faroe Islands, Scotland had a lower operational EBIT and EBIT margin.

Compared to Q3 2020, SCT's operational EBIT margin decreased from -6.8% to -13.9%.

Farming FO (DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
Operating revenue	603	945	2,340	3,152
Operational EBIT	63	338	448	1,103
Operational EBIT margin	10%	36%	19%	35%

Farming SCT (DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
Operating revenue	389	437	1,596	437
Operational EBIT	-54	18	-24	18
Operational EBIT margin	-13,9%	4%	-2%	4%

FARMING – OPERATIONAL PERFORMANCE

Average weights (HOG):

FO (North):	5.6 kg
FO (West):	5.0 kg
FO (South):	6.6 kg
SCT:	3.7 kg

• FO: Good biological performance in the quarter, good growth and low mortality.
• SCT: Biological challenges and increased mortality in several areas.

Market: Market conditions were significantly affected by Covid-19 in Q4 2020

-10 0 10 20 30

Margin - EBIT per kg total harvested quantity [NOK/kg]

(NOK/kg) Q4 2020 FO SCT North West South Total Total Op. EBIT/kg gw 8.81 2,43 6,51 5,66 -8.41

Q4 FO Q4 SCT YTD FO YTD SCT Solid fill: 2020 Increased transparency: 2019

Freight per kilo sold fresh salmon (FO) [Q3 2019 = Index 100]

VALUE ADDED PRODUCTS (VAP) STRONG QUARTER WITH HIGHER VOLUMES AND IMPROVED RESULTS

(DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
Operating revenue	287	249	1.116	964
Operational EBIT	80	37	140	64
Operational EBIT margin	28%	15%	13%	7%
VAP produced volumes (tgw)	6.790	4.219	23.931	16.690

Margin - EBIT per kg total VAP produced [NOK/kg]

FISHMEAL, OIL AND FEED (FOF) HIGHER RAW MATERIAL SOURCING, BUT LOWER EXTERNAL SALES OF FISHMEAL

(DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
Operating revenue	359	338	1,419	1,388
EBITDA	48	58	208	276
EBITDA margin	13%	17%	15%	20%
Feed sold (tonnes)*	30,885	28,398	111,998	97,408
Fishmeal sold external (tonnes)	1,500	4,123	18,675	31,769

* Including internal sales, corresponding to 96% of feed volumes in Q4 2020 (Q4 2019: 73%)

MARKET CONDITIONS FEED SIGNIFICANT INCREASE IN FEED SALES

Total feed sales increased (tonnes)

30,885 (Q4 2020) 28,398 (Q4 2019) 9%

External feed sale decreased (tonnes)

1,369 (Q4 2020) 7,620 (Q4 2019) -82%

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

Source: Holtermann

Market fluctuations

The fishmeal price increased while the fish oil price decreased in Q4 2020, compared to the previous quarter

SUMMARY OF Q4 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

GROUP PROFIT AND LOSS LOWER REVENUE, REDUCED OPERATIONAL EBIT AND PROFIT

(DKK million)	Q4 2020	Q4 2019	YTD 2020	YTD 2019
Operating revenue	1,183	1,605	4,696	4,511
Operational EBITDA	215	544	1,068	1,635
Operational EBIT	89	415	621	1,325
Fair value adjustment of biological assets	-22	-103	118	-221
Onerous contracts	0	0	0	0
Income from associates	6	4	6	14
Revenue tax	-2	-14	-54	-99
EBIT	69	301	691	1,019
Net financial items	-29	-31	-65	-37
EBT	41	271	626	982
Taxes	-78	-51	-163	-180
Profit for the period	-38	220	463	802
Operational EBITDA margin	18.2%	33.9%	22.7%	36.2%
Operational EBIT margin	7.5%	25.9%	13.2%	29.4%
Operational EBIT/kg (Farming FO and VAP) (NOK)	12.92	28.25	16.65	26.91
Operational EBIT/kg (Farming SCT) (NOK)	-8.41	3.09	-0.99	3.09
EBITDA margin (fishmeal, oil and feed)	13.4%	17.1%	14.6%	19.9%

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

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE

Operational EBIT* (mDKK)

1,165 1,378 1,075 1,325 622 2016 2017 2018 2019 2020

Adjusted EPS (DKK)

*) Operational EBIT is EBIT before fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax

BALANCE SHEET

(DKK million)	Q4 2020	End 2019
Intangible assets	4,493	4,396
Property, plant and equipment	4,221	3,780
Right of use assets	353	333
Financial assets	122	119
Long-term receivables	8	4
Deferred tax assets	1	38
Biological assets	2,117	1,902
Inventory	776	549
Receivables	490	626
Other receivables	134	46
Cash and cash equivalents	467	1,310
Total Assets	13,183	13,101
Equity	8,729	8,497
Deferred tax and other taxes	1,196	1,124
Long-term interest-bearing debt	2,220	2,328
Long-term leasing debt	265	226
Financial derivatives	11	15
Short-term leasing debt	131	108
Accounts and other payables	629	804
Total Equity and Liabilities	13,183	13,101

Inventory total (mDKK)

VAP segment (mDKK)

FOF segment (mDKK)

Volumes

Inventory volumes in the VAP and FOF segments increased during Q4 2020 as well as during FY2020

Cost price

Average cost price of inventory decreased during Q4 2020 as well as during FY2020

CASH FLOW

Q4 2020	Q4 2019	YTD 2020	YTD 2019
-107	-150	474	1,033
-343	-3,791	-816	-4,598
471	2,639	-500	4,557
21	-1,302	-843	993
467	1,310	467	1,310
1,677	2,470	1,677	2,470

NIBD was increased by:

• Net investments (mDKK 343)
• Taxes paid (mDKK 189)
• Change in working capital (mDKK 118)

NIBD was decreased by:

Cash flow, operating activities (mDKK -154)

Financing end Q4 2020

• NIBD: DKK 1,753 million
• Bank facilities of EUR 463 million
• Undrawn credit facilities: DKK 1,677 million

Development in NIBD in DKK millions

NIBD and available funding

Q4 ESG UPDATE

Healthy Living Plan

We believe that by investing in the health of our business, our people, our salmon, the environment and the communities in which we operate, we will enable healthy living for millions of people globally.

See more by visiting www.bakkafrost.com/sustainability

UN SUSTAINABLE DEVELOPMENT GOALS

Bakkafrost is contributing towards to the achievement of the UN SDGs through the Healthy Living Plan.

Healthy Business

Bakkafrost named top three producer of sustainable protein by the Coller FAIRR 2020 Protein Producer Index - one of only three companies to rank as "low risk" for investors.

Healthy Salmon

100% ASC certification

Healthy Communities

Contributed around 3.5 mDKK to local communities through our Healty Living Fund in 2020

Healthy People

Provided free Influenza vaccines to all employees in the Faroe Islands.

Healthy Environment

In Q4 2020 biogas plant FÖRKA delivered 1.4 MWh of electricity to the national grid and 0.9 MWh of district heating to citizens of Tórshavn.

In Q4 the biogas plant produced green energy equal to 355.049 liters of fuel oil

SUMMARY OF Q4 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG

APPENDIX

OUTLOOK

Market

• Global harvest increased 10.8% in in Q4 2020
• 4% increase expected in global harvest in Q1 2021
• 2-3% increase in global harvest expected in 2021
• 5-6% increase in global supply expected in 2021 due to expected inventory movements, especially in H1

Farming

• In 2020, Bakkafrost harvested HOG 85,686 tonnes in the Faroe Islands and Scotland combined
• In 2021, Bakkafrost expects to harvest HOG 106,000 tonnes (Faroe Islands: 66,000 tonnes and Scotland: 40,000 tonnes)
• In the Faroe Islands, Bakkafrost expects to release around 14.5 million smolts in 2021
• In Scotland, Bakkafrost expects to release around 11.0 million smolts in 2020

Contracts

• For 2021, Bakkafrost has signed contracts for around 28% of the total expected harvest volumes in the Faroe Islands and Scotland
• Bakkafrost strategy is to allocate around 40% of expected harvested volumes at commitments and contracts at any time

Fishmeal, Oil and Feed

• Feed sales are expected to be around 120,000 tonnes in 2021
• Fishmeal and fish oil volumes are expected to be lower than in 2020

Business development / Investment programme

• Pursuing sustainable organic growth
• For the period 2020 2022, ~DKK 1.8 billion will be invested in the Faroe Islands
• In Scotland, the yearly investments for 2020-2024 are expected to be around DKK 350-400 million per year
• Capital Markets Day will be held on 14-15 September 2021

SUMMARY OF Q4 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK

APPENDIX

Ian Laister appointed new Managing Director as of 1 March 2021

Mr. Laister has more that 20 years' experience creating value and restoring performance across diverse sectors both as a Director and as a Management Consultant. Mr. Laister joined SSC almost 18 months ago to support the transition from the outgoing CFO, and then post acquisition integration, acting as deputy to the interim CEO, Odd Eliasen, during the first transition period.

Odd Eliasen, who is also Managing Director of Havsbrún, has held the interim position as CEO of the Scottish Salmon Company since Bakkafrost acquired the company in Q4 2019. With the appointment of Mr. Laister as Managing Director, Mr. Eliasen will hand over to Mr. Laister.

Bakkafrost's Board of Directors instated as Board of Directors in SSC, replacing the current board

Chariman Deputy Chairman

LAND BASED FARMING EXPANSION TO 14 KT

S16 Glyvradalur capacity expansion in progress

In operation in 2023 1.9kt ~ 3.8m smolt á 500g

S03 Norðtoftir capacity expansion in progress

• In operation in 2023
• 2.8kt ~ 5.3m smolt á 500g

S24 Strond capacity expansion finalised

• Now in full operation ~ 9m smolt á 500g
• 10 unrelated departments, building of 320m x 80m

FS1336 Applecross, Scotland

Expected to be in operation in 2023 2.8kt ~ 11m smolt á 250g

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

Total consent is 74,765 tonnes in 44 farming sites:

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
• Niche and differentiated region
• High quality salmon from Scottish Provenance priced at a premium
• 2. Creating a differentiated global leader in premium salmon
• Exposure to two geographies, Faroe Islands and Scotland
• Premium brands

Harris and Lewis,Scotland

3. Potential for significant improvement

• Scottish Salmon profitability to improve over a five-year period 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 - GROWING TO 100KT SUPERIOR BIOLOGY COMBINED WITH STATE-OF-THE-ART INFRASTRUCTURE

	FISHMEAL, OIL AND FEED	BROODSTOCK	SMOLT	SEA WATER	PROCESSING	SALES/MARKETING
	Equivalent to 100k (tgw)	None	12 million @ 200 grams	21 farming sites/17 fjords	130k primary (tgw)	Central sales Faroes
CAPACITY	annual harvest @			55k (tgw) @100g smolt/	40k secondary (tgw)	UK sales office
2018	marine index of 44%			65k (tgw) @500g smolt	80k packaging material (tgw)	US sales office
				4 well boats & 2 FSVs		Branding
CMD	Additional 65k (tgw)	Own breeding programme	19 million @ 500 grams	Upgraded infrastructure	Selected upgrading,	Marketing/sales initiatives
ANOUNCED	annual harvest @	Full self sufficiency		Fish transportation	efficiency and functionality	Market penetration
INVESTMENTS	marine index of 44%			R&D
	Sustainable Growth	Adaptability to local biology	Sustainable growth	>100k (tgw) @ 500g smolt	Product quality	Premium price achievement
PURPOSE	Flexibility	Product differentiation	Reduced exposure in sea		Product presentation	Reduced spot price sensitivity
	Efficiency, streamlining & innovation	Support branding strategy (immaterial property)			Product differentiation	Maintain low exposure to
	Environmental improvement	Less dependency of suppliers			Fresh premium product	single markets
	Food safety	Veterinary control			capability

DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN

Expected supply growth in 2021

• 6% growth in Global supply
• 9% growth in European supply
• -2% growth in supply from Americas

Global Supply of Atlantic Salmon (head on gutted - HOG)
	2017	2018	2019	2020E	2021E
Norway	1.078	1.129	1.198	1.223	1.328
UK	159	137	171	163	183
Ireland	15	13	14	14	13
Faroes	72	64	78	72	88
Total Europe	1.325	1.343	1.462	1.472	1.612
Chile	490	598	601	656	642
Canada	123	132	124	127	126
USA	20	17	19	18	16
Total Americas	633	747	744	802	785
Other	78	78	96	115	143
Total (Sold Quantity)	2.035	2.168	2.302	2.389	2.540
Supply growth - Global	2%	7%	6%	4%	6%
Supply growth - Europe	3%	1%	9%	1%	9%
Supply growth - Americas	-3%	18%	0%	8%	-2%

Salmon Markets (head on gutted - HOG)
	2017	2018	2019	2020E	2021E
EU+UK	918	949	1.017	1.071	1.156
USA	402	436	469	506	515
Japan	57	54	53	64	64
Russia	70	89	79	78	89
Others	588	640	684	669	715
Total (Sold Quantity)	2.035	2.168	2.302	2.389	2.539

Comments:

All figures are in hog-equivalents and thousand tonnes. Figures represents sold quantity of Atlantic Salmon from each producing country

Source: Kontali

Q4 2020 MARKET ENVIRONMENT DECREASING MARKET PRICES

Further decrease in market prices

• Further disruption to food service demand (COVID-19)
• Temporary high global supply growth (10%)
• Nasdaq Norway price EUR 4.0 in Q4 2020
• 28% down vs. Q4 2019
• 9% down vs. Q3 2020
• Urner Barry East Coast price USD 7.8 per kg in Q4 2019
• Stable vs. Q4 2019
• 2% up vs. Q3 2020

MARKET CURRENCY	Q4 2020	Q4 2019	Change %
Nasdaq Norway (EUR)	4.04	5.59	-27.6 %
UB North East US 14-16lb HOG (USD per kg)	7.75	7.75	0.0 %
DKK Nasdaq Norway	Q4 2020 30.09	Q4 2019 41.74	Change % -27.9 %
UB North East US 14-16lb HOG (per kg)	48.37	52.28	-7.5 %

PRICE NORWAY

Source: Kontali

DEVELOPMENT PER QUARTER

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
(mDKK)	2018	2019	2019	2019	2019	2020	2020	2020	2020
Revenue	750	964	947	996	1,605	1,255	1,134	1,123	1,183
Operational EBIT	231	268	339	303	415	248	182	103	89
Profit/Loss	-7	213	189	181	220	-148	472	177	-38
Harvest FO (tgw)	12,234	13,707	12,609	12,938	17,930	10,667	12,941	11,135	15,957
Harvest SCT (tgw)					7,925	7,268	7,937	10,476	9,305
Op. EBIT Farming FO & VAP (NOK/kg)	21.91	21.99	31.31	26.25	28.25	25.10	15.34	15.24	12.92
Op. EBIT Farming FO (NOK/kg)	21.56	21.86	31.31	23.61	25.49	26.51	9.79	12.43	5.66
Op. EBIT VAP (NOK/kg)	1.51	0.37	-0.01	9.23	11.72	-2.78	11.19	5.87	17.05
Op. EBIT Farming SCT (NOK/kg)					3.09	5.70	5.36	-3.89	-8.41
Equity ratio	70%	70%	65%	68%	65%	66%	69%	68%	66%
NIBD	495	522	744	-1,271	1,019	988	1,116	1,257	1,753

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)
5.000 4.000 3.000 2.000 1.000 0 3 4 5 6 7 8 9 2020 201 201 201 201 201 201 201	1.600 1.400 1.200 1.000 800 600 400 200 0 3 4 5 6 7 8 9 2020 201 201 201 201 201 201 201	40 30 20 10 0 -10 -20 3 4 5 6 7 8 9 2020 201 201 201 201 201 201 201	40 30 20 10 0 -10 -20 3 4 5 6 7 8 9 2020 201 201 201 201 201 201 201	40 30 20 10 0 -10 -20 3 4 5 6 7 8 9 2020 201 201 201 201 201 201 201

Dividend

• The Board proposes dividend for 2020 of DKK 3.65 per share to be paid out in Q2 2021.
• Dividend payment equals 59% of adjusted EPS.

Dividend policy

• Competitive return through:
• Dividends
• Increase in the value of the equity
• Generally, Bakkafrost shall pay dividend to its shareholders
• A long-term goal is that 30–50% of adjusted EPS shall be paid out as 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

Dividend per share in % of adj. EPS*

Dividend per share (DKK)***

Facilities and locations

FAROE ISLANDS

• 18 islands – 1,387 km²
• 52,920 inhabitants (December 2020)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)

Key sectors (% of wage earners, M12 2020)

• Service/public admin.: ~35%
• Private service: ~32%
• Construction: ~16%
• Fish & aquaculture: ~18%
• Unemployment rate (November 2020): 1.4%
• Total working force (December 2020): 27,691
• GDP: DKK ~20.5bn (2019e)
• GDP/capita: DKK 394,000 (2019e)
• (Norway: DKK 463,000) (2017)

Total export of fish products (2019)

DKK 8,937 million - whereof farmed fish accounts for 45%

TAXES

• Total percent of GDP: 41.8% (2016)
• 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

Source: Hagstova Føroya

BAKKAFROST / Q4 2020 PRESENTATION Page 43