Bakkafrost P/f

Investor Presentation • Aug 25, 2020

Q2 2020

BAKKAFROST GROUP Glyvrar 25 August 2020

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 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

HIGHLIGHTS

Operation	 12,941 tgw in Q2 2020 (12,609 tgw in Q2 2019) Harvest in the Faroe Islands (FO):
	 7,937 tgw in Q2 2020 Harvest in Scotland (SCT):
	 Feed sales of 22,121 tonnes in Q2 2020 (18,872 tonnes in Q2 2019)
	 of 122,512 tonnes in Q2 2020 (110,109 tonnes in Q2 2019) Raw material purchase
Revenues and Operational EBIT	 Revenues of DKK 1,134 million in Q2 2020 (DKK 947 million in Q2 2019)
	 Operational EBIT** of DKK 182 million in Q2 2020 (DKK 339 million in Q2 2019)
Cash Flow	 of DKK 111 million in Q2 2020 (DKK 327 million in Q2 2019) Cash flow from operations
Segments	 Positive operational EBIT for all segments

*) Including internal sales of 16,159 tonnes in Q2 2020 (15,689 tonnes in Q2 2019)

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

SUMMARY OF THE QUARTER

(DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	1,134	947	2,389	1,910
Operational EBITDA	298	397	665	718
Operational EBIT	182	339	430	606
Profit for the period	472	189	324	401
Operational EBITDA margin	26.2%	41.9%	27.8%	37.6%
Operational EBIT margin	16.0%	35.8%	18.0%	31.8%
Operational EBIT/Kg (Farming FO) (NOK)	9.79	31.31	17.54	26.39
Operational EBIT/Kg (Farming FO and VAP) (NOK)	15.34	31.31	19.83	26.46
Operational EBIT/Kg (VAP) (NOK)	11.19	-0.01	4.59	0.19
Operational EBIT/Kg (Scotland Farming SCT) (NOK)	5.36	N/A	5.52	N/A
EBITDA margin (Fishmeal, -oil and Feed)	18.6%	20.6%	15.6%	21.8%

Group Operational EBIT was DKK 182 million in Q2 2020, compared to DKK 339 million in Q2 2019

SUMMARY OF Q2 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

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

Western Europe Sales & volume (FO only) Total sales of salmon

North America

Harvest volumes used in the VAP

	Q2 2020		Q2 2019			H1 2020			H1 2019
by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	64%	82%	73%	43%	N/A	43%	56%	87%	70%	46%	N/A	46%
North America	16%	8%	12%	25%	N/A	25%	24%	6%	16%	24%	N/A	24%
Asia	19%	3%	10%	25%	N/A	25%	15%	1%	9%	25%	N/A	25%
Eastern Europe	1%	0%	0%	7%	N/A	7%	4%	0%	2%	5%	N/A	5%
Rest of world	0%	7%	4%	0%	N/A	0%	0%	5%	2%	0%	N/A	0%
Total	100%	100%	100%	100%	N/A	100%	100%	100%	100%	100%	N/A	100%

Fresh salmon only by	Q2 2020		Q2 2019			H1 2020			H1 2019
markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	30%	82%	67%	23%	N/A	23%	24%	87%	63%	26%	N/A	26%
North America	32%	8%	15%	33%	N/A	33%	43%	6%	21%	32%	N/A	32%
Asia	37%	3%	13%	36%	N/A	36%	26%	1%	11%	36%	N/A	36%
Eastern Europe	0%	0%	0%	8%	N/A	8%	7%	0%	3%	6%	N/A	6%
Rest of world	0%	7%	5%	0%	N/A	0%	0%	5%	3%	0%	N/A	0%
Total	100%	100%	100%	100%	N/A	100%	100%	100%	100%	100%	N/A	100%

Contract share FO, VAP products [% of qty]

VAP on contract HOG, Spot

Average spot prices increased in Q2 2020 (NOK/KG)

Spot prices were lower in Q2 2020 - especially in the first half of the quarter (mainly a Covid-19 effect)

Global harvest grew 3% y/y

FX: NOK still weak

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

Change in global market [volume harvested and market price]

Source: Kontali

Global growth of 1.4%	Harvest & Supply Development [Head On Gutted 1,000 tonnes]	Q2 2020		Q2 2019 Change %
Europe flat development – down 0.3%  Norway down 6kt  UK modest growth  Faroes up by 4kt  Chile up 14kt  Indications of liquidity driven harvest  Build-up of frozen inventory 11kt	Norway	271	277	-2.5 %
	UK	41	41	0.7 %
	Faroes	21	17	23.2 %
	Iceland	5	4	14.3 %
	Ireland	5	4	30.2 %
	Total Europe	342	343	-0.3 %
Americas up 8%
	Chile	157	143	9.7 %
	Canada	34	32	4.2 %
	USA	4	5	-17.0 %
Other up 31.8%	Total Americas	195	181	8.0 %
	Other	21	16	31.8 %
Inventory	Total (Harvested quantity)	558	539	3.4 %
	Inventory movements	-15	-4	292.3 %
	Total (Sold Quantity)	543	536	1.4 %

Global growth of 1.3%

EU & USA growth of 3%

Increased supply through retail chain

Russia down 18%

Reduced frozen supply from Chile

Latin America down 18%

High proportion normally sold through food service

Asia

Generally strong growth

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

	Estimated volumes		Q2 comparison		Estimated volumes		H1 comparison
Markets	Q2 2020	Q2 2019	Volume	%	H1 2020	H1 2019	Volume	%
EU	242,500	236,300	6,200 ୟ	3%	464,200	459.000	5,200 இ	1%
USA	118,500	115,200	3,300 -	3%	240,500	230,600	9,900 m	4%
Russia	12,600	15,400	-2,800 M	-18%	30,400	31,700	-1,300 -	-4%
Japan	14,800	12,300	2,500 m	20%	28,200	25.700	2,500 m	10%
Greater China	35,500	31,800	3,700 m	12%	61,100	66,300	-5,200 -1	-8%
ASFAN	17,000	16,300	700 IN	4%	35,300	35.000	300 5	1%
Latin America	30,900	37,500	-6,600	-18%	72,900	80.600	-7,700 4	-10%
Ukraine	4,200	3,600	600 M	17%	8,600	8,300	300 m	4%
Other markets	66,600	67,100	-500 જી	-1%	137,900	134,700	3,200 இ	2%
Total all markets	542,600	535,500	7,100 இ	1.3 %	1,079,100	1,071,900	7,200 27	0.7 %

SHORT TERM SUPPLY OUTLOOK

Moderate global supply growth

• Moderate European supply in 2020, drop in 2021
  • Reduced output expected in Norway and Scotland
  • Significant drop in Americas driven by Chile
• Outlook for tighter supply from medio 2021

SUPPLY - TOTAL

SUPPLY - EUROPE SUPPLY - AMERICAS

Source: Kontali

SUMMARY OF Q2 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

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

Harvest Volumes tonnes [HOG]	Q2 2020	Q2 2019	H1 2020	H1 2019
FO - North Region	12,941	7,858	19,206	14,601
FO - West Region	0	4,751	2,769	11,715
FO - South Region	0	0	1,633	0
FO – Total	12,941	12,609	23,608	26,316
SCT	7,937	n/a	15,205	n/a
Total (FO & SCT)	20,878	12,609	38,813	26,316

Seawater 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) 86 (Q2 2020) 303 (Q2 2019) 15 (Q2 2020) 40 (Q2 2019) 574 (Q2 2020) 759 (Q2 2019)

Scotland (SCT)

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

Compared to Q1 2020, SCT's operational EBIT margin increased from 7.2% to 7.6%.

Skálafjørður, Faroe Islands - (view from Bakkafrost's Headquarters)

Farming FO (DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	574	759	1,207	1,514
Operational EBIT	86	303	289	533
Operational EBIT margin	14.9%	40.0%	23.9%	35.2%

Farming SCT (DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	377	N/A	790	N/A
Operational EBIT	29	N/A	59	N/A
Operational EBIT margin	7.6%	N/A	7.4%	N/A

FARMING – OPERATIONAL PERFORMANCE

Average weights (HOG):

FO (North):	5.43 kg
FO (West):	-
FO (South):	-
SCT:	4.45 kg

The biological performance was very good in the quarter, good growth and low mortality rate on harvested fish.

The market conditions were significantly affected by the Covid-19 during the quarter.

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

(NOK/kg)	Q2 2020
		SCT
	North	West	South	Total	Total
Operational EBIT/kg gw	9.79	-	-	9.79	5.36

Freight per kilo sold fresh salmon (FO) [Q2 2019 = Index 100]

VALUE ADDED PRODUCTS (VAP) HIGHER VOLUMES AND HIGHER OPERATIONAL EBIT

(DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	308	238	582	498
Operational EBIT	49	0	38	1
Operational EBIT margin	15.8%	0.0%	6.5%	0.3%
VAP produced volumes (tgw)	6,420	4,088	11,828	8,777

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)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	269	283	579	567
EBITDA	50	58	90	124
EBITDA margin	18.6%	20.6%	15.6%	21.8%
Feed sold (tonnes)*	22,121	18,872	41,244	35,136
Fishmeal sold external (tonnes)	2,702	7,371	14,474	17,358

* Including internal sales, corresponding to 73% of feed volumes in Q2 2020 (Q2 2019: 83%)

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED SIGNIFICANT INCREASE IN FEED SALES

Total feed sales increased (tonnes)

22,121 (Q2 2020) 18,872 (Q2 2019) 17%

External feed sale increased (tonnes)

The fishmeal price increased whereas fish oil price decreased in Q2 2020, compared

5,962 (Q2 2020) 3,183 (Q2 2019) 87%

Volumes of raw material purchase and feed sale [tonnes]

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

Source: Holtermann

Market fluctuations

to previous quarter

SUMMARY OF Q2 2020 MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG OUTLOOK

APPENDIX

GROUP PROFIT AND LOSS HIGHER REVENUE, BUT REDUCED OPERATIONAL EBIT

(DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Operating revenue	1,134	947	2,389	1,910
Operational EBITDA	298	397	665	718
Operational EBIT	182	339	430	606
Fair value adjustment of biological assets	427	-66	16	-48
Onerous contracts	0	0	0	0
Income from associates	0	-4	0	3
Revenue tax	-23	-32	-42	-64
EBIT	586	237	404	497
Net financial items	-15	-8	-14	-9
EBT	571	229	390	488
Taxes	-100	-41	-67	-87
Profit for the period	472	189	324	401
Operational EBITDA margin	26.2%	41.9%	27.8%	37.6%
Operational EBIT margin	16.0%	35.8%	18.0%	31.7%
Operational EBIT/kg (Farming FO and VAP) (NOK)	15.34	31.31	19.83	26.46
Operational EBIT/kg (Farming SCT) (NOK)	5.36	N/A	5.52	N/A
EBITDA margin (fishmeal, oil and feed)	18.6%	20.6%	15.6%	21.8%

* 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

2016 2017 2018 2019 2020

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

BALANCE SHEET

(DKK million)	Q2 2020	End 2019
Intangible assets	4,378	4,396
Property, plant and equipment	3,894	3,780
Right of use assets	432	333
Financial assets	117	119
Long-term receivables	4	4
Deferred tax assets	36	38
Biological assets	1,903	1,902
Inventory	721	549
Receivables	563	626
Other receivables	11	46
Cash and cash equivalents	454	1,310
Total Assets	12,514	13,101
Equity	8,581	8,497
Deferred tax and other taxes	1,182	1,124
Long-term interest-bearing debt	1,571	2,328
Long-term leasing debt	249	226
Financial derivatives	19	15
Short-term leasing debt	195	108
Accounts and other payables	716	804
Total Equity and Liabilities	12,514	13,101

CASH FLOW

(DKK million)	Q2 2020	Q2 2019	H1 2020	H1 2019
Cash flow from operations	111	327	477	403
Cash flow from investments	-196	-157	-297	-263
Cash flow from financing	-262	-189	-1,034	-135
Net change in cash	-347	-19	-855	6
Cash at the end of the period	454	323	454	323
Undrawn facilities	2,323	742	2,323	742

NIBD was increased by:

• Net investments (mDKK 196)
• Change in working capital (mDKK 187)

NIBD was decreased by:

Cash flow, operating activities (mDKK -255)

Financing end Q2 2020

• NIBD: DKK 1,116 million
• Bank facilities of EUR 352 and GBP 100 million
• Undrawn credit facilities: DKK 2,323 million

Development in NIBD in DKK millions

NIBD and available funding

BAKKAFROST / Q2 2020 PRESENTATION Page 25

SUMMARY OF Q2 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

OUTLOOK

Market

• 4% increase expected in global harvest in H2-2020
• 2% increase in global harvest expected in 2021

Farming

• In 2020, Bakkafrost expects to harvest HOG 50,000 tonnes in the Faroe Islands and HOG 39,000 tonnes in Scotland
• In 2021, Bakkafrost expects to harvest HOG 62,500 tonnes in the Faroe Islands and HOG 44,000 tonnes in Scotland
• Bakkafrost expects to release 15.0 million smolts in 2020 in the Faroe Islands
• The smolt release in Scotland is expected to be 10.7 million smolts in 2020

Contracts

• Contracted around 33% of expected H2 2020 harvest volume
• Long-term strategy is to sell around 40% of the harvested volumes at fixed price contracts

Fishmeal, Oil and Feed

Feed sales are expected to be around 110,000 tonnes in 2020. Fishmeal and fish oil volumes are expected to be lower than in 2019

Business development / Investment programme

• Pursuing sustainable organic growth
• For the remaining period 2020 2022 of the investment programme ~ 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 million per year

SUMMARY OF Q2 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK

APPENDIX

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, Faroe Islands and Scotland
  3. Premium brands

SCOTLAND – STRATEGIC RATIONALE

• 1. Potential for significant improvement
  2. Scottish Salmon profitability to improve over a five-year period through transfer of best practices
  3. Synergies
  4. Targeted investment programmes
• 1. Financially attractive, acquiring the business at a reasonable value, multiple to the sector and Bakkafrost

43 farming sites / 67,023T consent

South

• 20 sites / 29,205T consent
  • Mull and Gigha, 6 sites
  • Loch Striven and Arran, 4 sites
  • Loch Fyne, 10 sites

North

• 23 sites / 37,818T consent
  • Uist, 5 sites
  • Sky & mainland, 7 sites
  • Loch Roag, 6 sites
  • East Lewis & Harris, 5 sites

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	>76k (tgw) @ 500g smolt	Product quality	Premium price achievement
	Flexibility	Product differentiation	Reduced exposure in sea		Product presentation	Reduced spot price sensitivity
PURPOSE	Efficiency, streamlining &	Support branding strategy
	innovation	(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 HARVESTED AND SOLD QUANTITY BY ORIGIN

Expected supply growth in 2021

• 2% growth in Global supply
• 4% growth in European supply
• -4% growth in supply from Americas

	2017	2018	2019	2020E	2021E
Norway	1,078	1,129	1,198	1,228	1,274
UK	159	138	165	166	169
Ireland	15	13	14	14	15
Faroes	72	64	78	77	85
Total Europe	1,325	1,344	1,455	1,484	1,543
Chile	490	598	601	645	610
Canada	123	132	124	125	132
USA	20	17	19	18	16
Total Americas	633	747	744	788	758
Other	78	79	98	120	136
Total (Sold Quantity)	2,035	2,170	2,297	2,392	2,437
Supply growth - Global	2%	7%	6%	4%	2%
Supply growth - Europe	3%	1%	8%	2%	4%
Supply growth - Americas	-3%	18%	0%	6%	-4%

EU 918 950 1,011 1,063 1,096 USA 402 436 469 498 492 Japan 58 54 53 57 57 Russia 70 89 79 77 80 Others 588 641 685 697 712 Total (Sold Quantity) 2,035 2,171 2,297 2,392 2,437

2017 2018 2019 2020E 2021E

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

Q2 2020 MARKET ENVIRONMENT DECREASING MARKET PRICES

Decreasing market prices during the quarter

• Significant demand disruption (Covid-19)
• Limited supply growth
• Nasdaq Norway price EUR 5.2 in Q2 2020
  • 18% down vs. Q2 2019
  • 20% down vs. Q1 2020
  • Urner Barry East Coast price USD 6.9 per kg in Q2 2019
    • 22% down vs. Q2 2019
    • 25% down vs. Q1 2020

MARKET CURRENCY	Q2 2020	Q2 2019	Change %
Nasdaq Norway (EUR)	5.24	6.43	-18.4 %
UB North East US 14-16lb HOG (USD per kg)	6.93	8.84	-21.6 %

DKK	Q2 2020	Q2 2019	Change %
Nasdaq Norway	39.12	48.02	-18.5 %
UB North East US 14-16lb HOG (per kg)	46.95	58.71	-20.0 %

Nasdaq Norway (EUR) Nasdaq Norway (DKK)

NORWAY PRICE NORWAY

Source: Kontali

Q2 2020 MARKET ENVIRONMENT – COVID-19 EFFECTS

DEVELOPMENT PER QUARTER

	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
(mDKK)	2018	2018	2018	2019	2019	2019	2019	2020	2020
Revenue	954	622	750	964	947	996	1,605	1,255	1,134
Operational EBIT	408	168	231	268	339	303	415	248	182
Profit/Loss	339	356	-7	213	189	181	220	-148	472
Harvest FO (tgw)	12,902	7,217	12,234	13,707	12,609	12,938	17,930	10,667	12,941
Harvest SCT (tgw)							7,925	7,268	7,937
Op. EBIT Farming FO & VAP (NOK/kg)	37.41	25.34	21.91	21.99	31.31	26.25	28.25	25.10	15.34
Op. EBIT Farming FO (NOK/kg)	39.09	24.85	21.56	21.86	31.31	23.61	25.49	26.51	9.79
Op. EBIT VAP (NOK/kg)	-11.00	2.49	1.51	0.37	-0.01	9.23	11.72	-2.78	11.19
Op. EBIT Farming SCT (NOK/kg)							3.09	5.70	5.36
Equity ratio	68%	70%	70%	70%	65%	68%	65%	66%	69%
NIBD	443	286	495	522	744	-1,271	1,019	988	1,116

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	1,600 1,400 1,200 1,000 800 600 400 200 -	40 35 30 25 20 15 10 5 -	40 35 30 25 20 15 10 5 -	10 5 - -5 -10 -15

2018

2020

2010

2012

2014

2016

2018

2020

-

2010

2012

2014

2016

2018

2020

2010

2012

2014

2016

2018

2020

2010

2012

2014

2016

2020

2010

2012

2014

2016

2018

Dividend

• No dividend for 2019 because of the disruption and uncertainty caused by Covid-19

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

Dividend per share in % of adj. EPS*

Dividend per share (DKK)***

* 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

FAROE ISLANDS

• 18 islands – 1,387 km²
• 52,656 inhabitants (July 2020)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)

Key sectors (% of wage earners, M7 2020)

• Service/public admin.: ~34%
• Private service: ~31%
• Construction: ~18%
• Fish & aquaculture: ~17%
• Unemployment rate (May 2020): 1.8%
• Total working force (July 2020): 27,308
• 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 / Q2 2020 PRESENTATION Page 41