Bakkafrost P/f

Interim / Quarterly Report • Aug 20, 2019

INTERIM REPORT

Q2 2019 and H1 2019

12,902 7,217 03,000 6,000 9,000 12,000 15,000 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 408 168 200300400500

12,234 13,707 12,609 HARVEST VOLUME TGW

OPERATIONAL EBIT MDKK

OPERATIONAL EBIT VAP AND FARMING DKK/KG

Table of Contents

ig h l ig h H ts 2
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ina ia l iew F Re 4 nc v	l i da d Co te Inc S ta te t 1 2 ns o om e me n
Inc S ta te t 4 om e me n	l i da d f Co te S ta te t o ns o me n
S f ina ia l i ion ta te t o F Po t 4 me n nc s	Co he ive 2 Inc 1 mp re ns om e
h low Ca F 5 s	l i da d f ina ia l i ion Co te S ta te t o F Po t 1 3 ns o me n nc s
ing Fa Se t 6 rm g me n	l i da d h low Co te Ca F S ta te t 1 4 ns o s me n
Se V A P t 7 g me n	Co l i da d S f te ta te t o ns o me n
F O F Se t 8 g me n	ha in i C Eq ty 1 5 ng es u

loo k Ou t 9	he No te to t Ac t 1 6 s co un
is ks 0 R 1
f f Ev ts te t he Da te t he en a r o
f ina ia l i ion S ta te t o F Po t 1 0 me n nc s	Co ta ts 2 6 n c

ha in i C Eq ty ng es u	1 5
he No te to t Ac t s co un	1 6

Highlights

	Q 2	Q 2	H1	H1		Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18	DK K 1 00 0 ,	20 19	20 18	20 19	20 18
INC OM E S TA TE ME NT					FIN AN CIA L P OS ITI ON AN D C AS H F LO W
ing Gro - O rat up pe re ve nue	94 6, 50 6	95 4, 31 6	1, 91 0, 21 5	1, 80 5, 47 2	tal s*** To As set	6, 26 9, 60 8	5, 80 2, 52 3	6, 26 9, 60 8	5, 80 2, 52 3
ion al IT* Gro - O rat EB up pe	33 8, 76 4	40 7, 89 3	60 6, 46 8	67 6, 11 5	uit *** Eq y	4, 08 3, 85 9	4, 07 7, 02 9	4, 08 3, 85 9	4, 07 7, 02 9
Gro - E BIT up	23 6, 78 9	40 3, 45 5	49 7, 31 7	75 4, 90 0	uit ati Eq o* y r	65 %	70 %	65 %	70 %
Gro - P rof it f the rio d up or pe	18 8, 60 2	33 8, 75 6	40 1, 43 8	61 1, 05 7	Ne t in ter est -be ari de bt * ng	74 3, 57 2	49 5, 47 9	74 3, 57 2	49 5, 47 9
					Cas h f low fro ion rat m o pe s	32 6, 81 5	27 9, 46 7	40 3, 31 8	64 7, 64 2
tio l E * ( mi and P) ( K) Op BIT Far VA DK era na ng	30 3, 40 4	37 6, 29 0	53 4, 47 1	59 3, 11 7	h f low fro m f ina nci Cas ng	-18 8, 70 0	-55 5, 52 7	-13 4, 55 4	-45 3, 42 1
tio mi Op l E BIT */ kg ( Far and VA P) ( DK K) era na ng	24 .06	29 .17	20 .31	23 .59
Op tio l E BIT */ kg ( Far mi and VA P) ( NO K) era na ng	31 .31	37 .41	26 .46	30 .39	PR OF ITA BIL ITY
					sic rni har e ( K) Ba DK ea ngs pe r s	3.8 8	6.9 6	8.2 5	.56 12
mi ati Far - O ng per ng rev en ue	75 8, 61 3	77 4, 78 3	1, 51 4, 01 5	1, 44 1, 43 8	Dil d e ing sha ( K) ute DK arn s p er re	3.8 8	6.9 6	8.2 5	12 .56
mi ati al Far - O EB IT* ng per on	30 3, 43 9	39 3, 18 8	53 3, 18 2	62 1, 63 1	RO CE	6.0 %	7.9 %	10 .8%	14 .0%
Far mi - O ati al EB IT m in ng per on arg	40 .0%	50 .7%	35 .2%	43 .1%
mi ati al IT/ kg ( K) Far - O EB DK ng per on	24 .07	30 .47	20 .26	24 .73	VO LU ME S
mi ati al IT/ kg ( K) Far - O EB NO ng per on	31 .31	39 .09	26 .39	31 .85	d v olu s ( ) Ha ste tgw rve me	12 60 9 ,	12 90 2 ,	26 31 6 ,	25 13 9 ,
					rod d v olu s ( ) VA P p tgw uce me	4, 08 8	1, 97 0	8, 77 7	4, 08 5
VA P - Op tin era g r ev en ue	23 7, 55 2	93 61 8 ,	49 8, 12 6	18 6, 61 2	So ld f eed to nn es	18 87 2 ,	15 67 3 ,	35 13 6 ,	29 59 6 ,
Op tio l E * VA P - BIT era na	-35	-16 89 8 ,	1, 28 9	-28 51 4 ,	al f eed les Int to ern sa nn es	15 68 9 ,	14 65 6 ,	29 64 9 ,	27 80 8 ,
tio l E in VA P - Op BIT era na m arg	0.0 %	-18 .0%	0.3 %	-15 .3%	olt lea sed th d ( ) Sm re ou san pcs	3, 58 0	2, 77 5	5, 30 0	5, 90 9
tio VA P - Op l E BIT / kg ( DK K) era na	-0. 01	-8. 58	0.1 5	-6. 98
VA P - Op tio l E BIT / kg ( NO K) era na	-0. 01	-11 .00	0.1 9	-8. 99
					* A lign ed for fa ir v alu dju stm ent of bi e a om ass , on	tra cts ero us con	isio in pr ov ns,	e f com rom as soc	iat and es
tin FO F - Op era g r ev en ue	28 3, 44 7	32 6, 29 1	56 6, 85 8	62 6, 65 0	ta fer to No te 10 re ve nue x – re
FO F - EB ITD A	58 38 2 ,	66 04 7 ,	12 3, 63 4	15 2, 48 0	ita l em loy ed bas ed ** R etu rn on ave rag e c ap p on	tio l E BIT op era na	ref to No er –	te 10
FO F - EB ITD A m in arg	20 .6%	20 .2%	21 .8%	24 .3%	,
					*** ari fig s f d 2 Co 01 8 mp ng ure rom en
K/ K ( e) DK NO ave rag	76 .86	77 .97	76 .76	77 .64

Summary of Q2 2019 and H1 2019

(Figures in parenthesis refer to the same period last year)

The Bakkafrost Group delivered a total operating EBIT of DKK 338.8 million in Q2 2019. Harvested volumes were 12.6 thousand tonnes gutted weight. The combined farming and VAP segments made an operational EBIT of DKK 303.4 million. The farming segment made an operational EBIT of DKK 303.4 million. Achieved prices in this quarter increased and thus had a positive effect on the operational EBIT. The VAP segment made an operational EBIT of DKK 0.0 million. The EBITDA for the FOF segment was DKK 58.4 million.

The Group made a profit for Q2 2019 of DKK 188.6 million (DKK 338.8 million). For H1 2019, the profit was DKK 401.4 million (DKK 611.1 million).

The total volumes harvested in Q2 2019 were 12,609 tonnes gutted weight (12,902 tgw). Total harvested volumes in H1 2019 were 26,316 tonnes gutted weight (25,139 tgw).

3.6 million (2.8 million) smolts were transferred during Q2 2019. In H1 2019, 5.3 million (5.9 million) smolts were transferred.

The combined farming and VAP segments made an operational EBIT of DKK 303.4 million (DKK 376.3 million) in Q2 2019. The operational EBIT per kg in Q2 2019 was DKK 24.06 (DKK 29.17), which corresponds to NOK 31.31 (NOK 37.41) for the combined farming and VAP segments. For H1 2019, the combined farming and VAP segments made an operational EBIT of DKK 534.5 million (DKK 593.1 million).

The farming segment made an operational EBIT of DKK 303.4 million (DKK 393.2 million) in Q2 2019. The harvested volumes were lower, but the achieved prices were higher in Q2 2019, compared to Q2 2018. For H1 2019, the operational EBIT was DKK 533.2 million (DKK 621.6 million).

The VAP segment made an operational EBIT of DKK 0.0 million (DKK -16.9 million) for Q2 2019. For H1 2019, the operational EBIT was DKK 1.3 million (DKK -28.5 million).

The FOF segment (fishmeal, oil and feed) made an EBITDA of DKK 58.4 million (DKK 66.0 million) for Q2 2019, and the EBITDA margin was 20.6% (20.2%). The EBITDA was DKK 123.6 million in H1 2019 (DKK 152.5 million), corresponding to an EBITDA margin of 21.8% (24.3%).

During Q2 2019, Havsbrún sourced 110,109 tonnes (118,387 tonnes) of raw material, and in H1 2019, Havsbrún sourced 225,639 tonnes (248,491 tonnes) of raw material.

Bakkafrost aims at giving the shareholders a competitive return on their investment, both through payments of dividends and by value growth of the equity through positive operations.

In accordance with Bakkafrost's dividend policy and the resolution of the Annual General Meeting 2019, Bakkafrost paid out DKK 8.25 (NOK 10.65) per share on 26 April 2019. The total dividend payment was DKK 403.1 million (NOK 520.3 million).

In Q2 2019, Bakkafrost's full-time employees from 2018, still employed in Bakkafrost, have received bonus shares with the value of 2% of their salary in 2018. In total, Bakkafrost allocated 14,348 shares to its employees. The total allocation amounted to DKK 5.1 million and was based on the closing share price on the allocation day, 6 June 2019.

The net interest-bearing debt amounted to DKK 743.6 million at the end of Q2 2019 (DKK 495.5 million at year-end 2018). Undrawn credit facilities amounted to DKK 742.1 million at the end of Q2 2019.

The equity ratio was 65% at 30 June 2019, compared to 70% at the end of 2018.

Financial Review

Income Statement

(Figures in parenthesis refer to the same period last year)

The operating revenue amounted to DKK 946.5 million (DKK 954.3 million) in Q2 2019, and for H1 2019, the operating revenue amounted to DKK 1,910.2 million (DKK 1,805.5 million).

The farming segment's harvest volumes were lower, but the achieved prices were higher in Q2 2019, compared to the same quarter last year. The VAP segment had higher revenues because of higher volumes and higher prices in Q2 2019, compared to Q2 2018. The FOF segment had lower external revenue in Q2 2019, mainly due to lower external sales of fishmeal and fish oil, compared to Q2 2018.

Operational EBIT was DKK 338.8 million (DKK 407.9 million) in Q2 2019. The combined farming and VAP segments had lower operational EBIT in Q2 2019, compared to Q2 2018, and the FOF segment had lower operational EBIT in Q2 2019, compared to Q2 2018. For H1 2019, the operational EBIT was DKK 606.5 million (DKK 676.1 million).

The fair value adjustment of the Group's biological assets amounted to DKK -65.5 million (DKK 34.8 million) in Q2 2019. The adjustment is due to lower forward market prices for salmon at the end of the quarter, compared to the beginning of the quarter. For H1 2019, the fair value adjustment amounted to DKK -47.7 million (DKK 141.9 million).

Change in provisions for onerous contracts amounted to DKK 0 million (DKK -6.1 million) in Q2 2019. For H1 2019, the change in provisions for onerous contracts amounted to DKK 0.0 million (DKK -6.1 million).

In Q2 2019, the profit from associated companies amounted to DKK -4.4 million (DKK -1.7 million). For H1 2019, the profit from associated companies amounted to DKK 2.5 million (DKK 0.7 million).

The revenue tax amounted to DKK -32.0 million (DKK -31.4 million) in Q2 2019. The revenue tax increased marginally because of higher market prices For H1 2019, the revenue tax was DKK -64.0 million (DKK -57.7 million). From the 1st of January 2019, the revenue tax rate increased from 4.5% to 5.0%.

Net interests in Q2 2019 were DKK -7.6 million (DKK 9.1 million). For H1 2019, net interests were DKK -8.8 million (DKK -9.6 million).

Net taxes amounted to DKK -40.6 million (DKK -73.8 million) in Q2 2019. For H1 2019, net taxes amounted to DKK -87.1 million (DKK -134.3 million).

The result for Q2 2019 was DKK 188.6 million (DKK 338.8 million) and for H1 2019, the result was DKK 401.4 million (DKK 611.1 million).

Statement of Financial Position

(Figures in parenthesis refer to end last year)

The Group's total assets amounted to DKK 6,269.6 million (DKK 5,802.5 million) at the end of Q2 2019.

Intangible assets amounted to 390.5 (DKK 389.7 million) at the end of Q2 2019.

Property, plant and equipment amounted to DKK 3,112.3 million (DKK 2,884.3 million) at the end of Q2 2019. In Q2 2019, Bakkafrost made investments in PP&E amounting to DKK 267.0 million and new lease commitments according to IFRS 16 amounting to DKK 10.0 million.

Non-current financial assets amounted to DKK 111.3 million (DKK 112.8 million) at the end of Q2 2019.

The carrying amount (fair value) of biological assets amounted to DKK 1,231.5 million (DKK 1,358.5 million) at the end of Q2 2019. Biological assets have mainly decreased due to lower volumes, compared to year end 2018. Included in the carrying amount of the biological assets is a fair value adjustment amounting to DKK 335.1 million (DKK 382.8 million) at the end Q2 of 2019.

Inventories amounted to DKK 697.1 million (DKK 438.8 million) at the end of Q2 2019.

Total receivables, including long-term receivables, amounted to DKK 404.3 million (DKK 301.5 million) at the end of Q2 2019.

The Group's equity amounted to DKK 4,083.9 million (DKK 4,077.0 million) at the end of Q2 2019. The change in equity consists primarily of the positive result for Q2 2019 and paid-out dividend.

Total non-current liabilities amounted to DKK 1,760.2 million (DKK 1,346.5 million) at the end of Q2 2019.

Deferred taxes and other taxes amounted to DKK 622,5 million (DKK 534.4 million) at the end of Q2 2019.

Long-term debt was DKK 1,066.3 million (DKK 812.1 million) at the end of Q2 2019.

At the end of Q2 2019, the Group's total current liabilities were DKK 425.5 million (DKK 379.0 million). The current liabilities consist of accounts payable and tax payable.

Derivatives amounted to DKK 0.0 million (DKK 0.3 million) at the end of Q2 2019.

Short-term interest-bearing debt amounted to DKK 0 million (DKK 0 million) at the end of Q2 2019.

The equity ratio was 65% at the end of Q2 2019, compared with 70% at the end of 2018.

Cash Flow

(Figures in parenthesis refer to the same period last year)

The cash flow from operations was DKK 326.8 million (DKK 279.5 million) in Q2 2019. The changes in working capital had a negative effect on the cash flow from operations. For H1 2019, the cash flow from operations was DKK 403.3 million (DKK 647.6 million).

The cash flow from investment activities amounted to DKK -157.0 million (DKK -108.0 million) in Q2 2019. The amount relates to investments in property, plant and equipment. For H1 2019, the cash flow from investments amounted to DKK -263.0 million (DKK -219.4 million).

The cash flow from financing activities totalled DKK -188.7 million (DKK -555.5 million) in Q2 2019. For H1 2019, cash flow from financing amounted to DKK -134.6 million (DKK -453.4 million).

In Q2 2019, net change in cash flow amounted to DKK -18.9 million (DKK -384.0 million). For H1 2019, net change in cash flow amounted to DKK 5.8 million (DKK -25.2 million).

At the end of Q2 2019, Bakkafrost had unused credit facilities of DKK 742.1 million (DKK 997.7 million at the end of 2018).

Farming Segment

The farming segment produces high quality Atlantic salmon from juveniles to harvest size salmon. The salmon is sold to fresh fish markets globally and to the internal VAP production. The farming sites are in the Faroe Islands.

Volumes

The total volumes harvested in Q2 2019 were 12,609 tonnes gutted weight (12,902 tgw) – a change in volume of -2%. 7,858 tgw came from the North region and 4,751 tgw from the West region. Total harvested volumes for H1 2019 were 26,316 tonnes gutted weight (25,139 tgw), which is in line with the forecast for 2019.

3.6 million (2.8 million) smolts were transferred in Q2 2019. In H1 2019, 5.3 million (5.9 million) smolts were transferred. This is in line with the smolt transfer plan.

	Q 2	Q 2		H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	C ha ng e	2 0 1 9	2 0 1 8	C ha ng e
ina ia l F nc
l re To ta ve nu e	7 5 8, 6 1 3	7 7 4, 7 8 3	-2 %	1, 5 1 4, 0 1 5	1, 4 4 1, 4 3 8	5 %
E B I T	2 0 5, 8 7 2	3 9 6, 5 5 4	-4 8 %	4 2 4, 0 3 1	7 0 5, 8 0 1	-4 0 %
ion l Op t E B I T era a	3 0 3, 4 3 9	3 9 3, 1 8 8	-2 3 %	5 3 3, 1 8 2	6 2 1, 6 3 1	-1 4 %
Fa ing Op t ion l E B I T / kg ( D K K ) rm era a -	2 4. 0 7	3 0. 4 7	-2 1 %	2 0. 2 6	2 4. 7 3	-1 8 %
lum Vo es
d v lum ( ) Ha te tg rve s o es w	1 2, 6 0 9	1 2, 9 0 2	-2 %	2 6, 3 1 6	2 5, 1 3 9	5 %
Fa ing No t h rm r -	8 5 8 7,	1 2, 9 0 2	-3 9 %	1 1, 4 9 4	1 5, 6 3 8	-2 6 %
ing Fa We t rm s -	4, 7 5 1	0		8 2 2 1 4,	9, 0 5 1	6 % 5
l lea d ( ho d ) Sm ts t o re se us an	3, 5 8 0	2, 7 7 5	2 9 %	5, 3 0 0	5, 9 0 9	-1 0 %
ing h Fa No t rm r -	1, 0 9 0	0		2, 8 1 0	2 6 2	9 7 3 %
Fa ing We t rm s -	2, 4 9 0	2, 7 7 5	-1 0 %	2, 4 9 0	5, 6 4 7	-5 6 %

Financial Performance

In Q2 2019, the operating revenue for Bakkafrost's farming segment was DKK 758.6 million (DKK 774.8 million). The total revenue for the farming segment decreased in Q2 2019, compared with Q2 2018, mainly because of lower volume. The operating revenue for the farming segment for H1 2019 was DKK 1,514.0 million (DKK 1,441.4 million).

In Q2 2019, the farming segment's EBIT amounted to DKK 205.9 million (DKK 396.6 million). The farming segment's EBIT for H1 2019 was DKK 424.0 million (DKK 705.8 million).

Operational EBIT amounted to DKK 303.4 million (DKK 393.2 million) in Q2 2019, which corresponds to an operational EBIT margin of 40% (51%). In H1 2019, operational EBIT was DKK 533.2 million (DKK 621.6 million).

Operational EBIT/kg for the farming segment was DKK 24.07 (NOK 31.31) in Q2 2019, compared with DKK 30.47 (NOK 39.09) in Q2 2018. Operational EBIT/kg for H1 2019 was DKK 20.26 (NOK 26.39), compared with DKK 24.73 (NOK 31.85) for H1 2018.

VAP Segment

The VAP (value added products) segment produces skinless and boneless portions of salmon. The main market for the VAP products is Europe with increasing sales in other markets. The VAP products are sold on long-term fixed price contracts.

Volumes

32% (15%) of the total harvested volumes in Q2 2019 went to the production of VAP products, and 33% (16%) of the harvested volumes in H1 2019 went to production of VAP products.

The VAP production in Q2 2019 was 4,088 tonnes gutted weight (1,970 tgw) an increase of 108%, compared to Q1 2018. The volumes were higher, and the segment had higher contract coverage in Q2 2019, compared to Q2 2018. In H1 2019, the VAP production was 8,777 tgw (4,085 tgw).

	Q 2	Q 2		H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	C ha ng e	2 0 1 9	2 0 1 8	C ha ng e
ina ia F l nc
l re To ta ve nu e	2 3 2 7, 5 5	9 3, 6 8 1	% 1 5 4	9 8, 2 6 4 1	8 6, 6 2 1 1	6 % 1 7
E B I T	-3 5	-2 3, 0 0 7	1 0 0 %	1, 2 8 9	-3 4, 6 2 3	1 0 4 %
ion l Op t E B I T era a	-3 5	-1 6, 8 9 8	1 0 0 %	1, 2 8 9	-2 8, 5 1 4	1 0 5 %
ion l / kg ( ) V A P - Op t E B I T D K K era a	-0. 0 1	-8. 5 8	1 0 0 %	0. 1 5	-6. 9 8	1 0 2 %
lum Vo es
du d v lum ( ) V A P p tg ro ce o es w	4, 0 8 8	1, 9 7 0	1 0 8 %	8, 7 7 7	4, 0 8 5	1 1 5 %
in ion Ha te d v lum d V A P p du t rve s o es us e ro c	3 2 %	1 5 %	1 1 2 %	3 3 %	1 6 %	1 0 5 %
d v lum l d fre h / fro Ha te rve s o es so s ze n	6 8 %	8 % 5	-2 0 %	6 % 7	8 % 4	-2 0 %

Financial Performance

The operating revenue for the VAP segment amounted to DKK 237.6 million (DKK 93.6 million) in Q2 2019. The increase in revenue is due to higher volumes in Q2 2019, compared with Q2 2018. In H1 2019, the VAP revenue was DKK 498.1 million (DKK 186.6 million).

The VAP segment had an EBIT amounting to DKK 0.0 million (DKK -23.0 million) in Q2 2019. Changes in onerous contracts were DKK 0 million (DKK -6.1 million). In H1 2019, the VAP segment's EBIT amounted to DKK 1.3 million (DKK -34.6 million).

Operational EBIT amounted to DKK 0.0 million (DKK -16.9 million) in Q2 2019, corresponding to an operational EBIT of DKK -0.01 (NOK -0.01) per kg gutted weight in Q2 2019, compared with DKK -8.58 (NOK -11.00) per kg gutted weight in Q2 2018.

FOF Segment

The FOF (fishmeal, oil and feed) segment produces fishmeal, fish oil and fish feed. Most of the production is used for fish feed, used internally in the farming segment. The quality of the fish feed is important to the quality of the salmon from Bakkafrost. Fishmeal, fish oil and fish feed are also sold externally.

Volumes

Havsbrún received 110,109 tonnes (118,387 tonnes) of raw material to produce fishmeal and fish oil in Q2 2019. The raw material intake depends on the fishery in the North Atlantic and available species of fish. In H1 2019, Havsbrún received 225,639 tonnes (248,491 tonnes) of raw material.

The production of fishmeal in Q2 2019 was 23,021 tonnes (24,592 tonnes). For H1 2019, Havsbrún produced 47,759 tonnes (51,706 tonnes) of fishmeal.

The production of fish oil in Q2 2019 was 679 tonnes (1,305 tonnes). The production of fish oil varies, depending on the species of fish sourced for production and the timing of catch. For H1 2019, Havsbrún produced 4,773 tonnes (5,169 tonnes) of fish oil.

Sales of feed amounted to 18,872 tonnes (15,673 tonnes) in Q2 2019, of which the farming segment internally used 15,689 tonnes (14,656 tonnes) or 83.1% (93.5%). For H1 2019, Havsbrún sold 35,136 tonnes (29,596 tonnes) of feed.

Financial Performance

The operating revenue for the FOF segment amounted to DKK 283.4 million (DKK 326.3 million) in Q2 2019, of which DKK 159.0 million (DKK 144.6 million) represented sales to Bakkafrost's farming segment, corresponding to 56% (44%). For H1 2019, the revenue amounted to DKK 566.9 million (DKK 626.7 million) of which DKK 298.3 million (DKK 270.9 million) represented sales to Bakkafrost's farming segment, corresponding to 53% (43%).

	Q 2	Q 2		H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	C ha ng e	2 0 1 9	2 0 1 8	C ha ng e
F ina ia l nc
l re To ta ve nu e	2 8 3, 4 4 7	3 2 6, 2 9 1	3 % -1	6 6, 8 8 5 5	6 2 6, 6 0 5	0 % -1
E B I T	4 6, 8 1 7	5 7, 0 3 2	-1 8 %	1 0 9, 3 2 9	1 3 8, 6 7 7	-2 1 %
E B I T D A	5 8, 3 8 2	6 6, 0 4 7	-1 2 %	1 2 3, 6 3 4	1 5 2, 4 8 0	-1 9 %
F O F - E B I T D A in ma rg	2 0. 6 %	2 0. 2 %	2 %	2 1. 8 %	2 4. 3 %	-1 0 %
lum ( ) Vo to es nn es
l d s l d To ta Fe e o	1 8, 8 7 2	1 5, 6 7 3	2 0 %	3 5, 1 3 6	2 9, 5 9 6	1 9 %
in Fe d ter l sa le e na -	1 5, 6 8 9	1 4, 6 5 6	7 %	2 9, 6 4 9	2 7, 8 0 8	7 %
d e l s le Fe ter e x na a -	3, 8 3 1	0 1, 1 7	2 3 % 1	8 5, 4 7	8 8 1, 7	2 0 % 7
is hm l e l sa le F ter ea x na	7, 3 7 1	1 5, 5 3 9	-5 3 %	1 7, 3 5 8	2 7, 8 0 5	-3 8 %
is h o i l e l sa le F ter na x	0	0		1	2, 0 0 8	-1 0 0 %
ive d r ia l Re ter ce aw m a	1 1 0, 1 0 9	1 1 8, 3 8 7	-7 %	2 2 5, 6 3 9	2 4 8, 4 9 1	-9 %

Total revenue for the FOF segment in Q2 2019 decreased 13%, compared to the same quarter last year. The internal revenue increased, but the external sales have decreased. The decrease in external revenue is due to lower volumes of fishmeal and fish oil sold in Q2 2019, compared to Q2 2018.

EBITDA was DKK 58.4 million (DKK 66.0 million) in Q2 2019, and the EBITDA margin was 20.6% (20.2%). Havsbrún sources raw pelagic fish for the fishmeal and fish oil production, which are part of the recipe to produce salmon feed. For H1 2019, the EBITDA was DKK 123.6 million (DKK 152.5 million), corresponding to an EBITDA margin of 21.8% (24.3%).

Outlook

Market

The global supply of Atlantic salmon in Q2 2019 increased around 8%, compared to Q2 2018, according to the latest estimate from Kontali Analyse.

The global harvest of Atlantic salmon in Q3 2019 is expected to increase around 5%, compared to Q3 2018. The estimated global harvest of Atlantic salmon for 2019 is an increase of around 5-6%, compared to 2018.

Bakkafrost operates in the main salmon markets, Europe, USA, the Far East and Russia. Variation in sales distribution between the different markets is driven by the change in demand from quarter to quarter in the different regions. Bakkafrost, however, aims to have a balanced market diversification to reduce market risk.

Farming

The outlook for the farming segment is good. The estimates for harvest volumes and smolt releases are dependent on the biological development.

Bakkafrost focuses on reducing biological risk continuously and has made several new investments and procedures to diminish this risk. Bakkafrost focuses on using non-medical methods in treatments against sea lice and has invested in new technology to follow this strategy.

The biological performance in 2019 has been strong and there are clear signs that the large smolt and nonmedical delousing strategies are working.

Bakkafrost's guidance for harvest in 2019 is 54,500 tonnes gutted weight.

Bakkafrost expects to release 13.5 million smolts in 2019, compared with 12.6 million smolts in 2018 and 9.9 million smolts in 2017. The number of smolts released is a key element of predicting Bakkafrost's future production.

VAP (Value added products)

Bakkafrost has signed contracts covering around 35% of the expected harvested volumes for 2019. Bakkafrost's long-term strategy is to sell around 40-50% of the harvested volumes of salmon as VAP products at fixed price contracts.

The VAP contracts are at fixed prices, based on the salmon forward prices at the time they are agreed and the expectations for the salmon spot price for the contract period. The contracts last for 6 to 12 months.

FOF (Fishmeal, oil and feed)

The outlook for the production of fishmeal and fish oil is dependent on the availability of raw material.

The ICES 2019 recommendation for blue whiting is 1,143 thousand tonnes, which corresponds to a decrease of 18%, compared to ICES's recommendation for 2018.

Bakkafrost expects a decrease in production volumes of fishmeal and fish oil in 2019, compared to 2018.

Havsbrún's sales of fish feed in 2019 are expected to be at 85,000 tonnes, depending on external sales.

The major market for Havsbrún´s fish feed is the local Faroese market including Bakkafrost's internal use of fish feed.

Investments

Bakkafrost's investment program for the period from 2018 to 2022 will amount to DKK 3 billion, including

maintenance capex, and will reinforce Bakkafrost's integrated business model and ensure a capacity across the value chain of 100.000 tonnes. The aim of the investment program is to minimize the biological risk, increase efficiency and create sustainable organic growth.

Financial

Favourable market balances in the world market for salmon products and cost-conscious production will likely maintain the financial flexibility going forward.

A high equity ratio together with Bakkafrost's bank financing, makes Bakkafrost's financial situation strong. This enables Bakkafrost to carry out its investment plans to further focus on strengthening the Group, M&A's, organic growth opportunities and to fulfil its dividend policy in the future, which is unchanged although a new investment program is announced.

Risks

Biological risk has been and will be a substantial risk for Bakkafrost. The Annual Report 2018 gives more explanation on the biological risk and Bakkafrost's risk management in this regard.

Reference is made to the Outlook section of this report for other comments to Bakkafrost's risk exposure and to Note 3.

Bakkafrost is, as explained in the Annual Report 2018, exposed to the salmon price. Global supply of salmon is expected to increase in 2019 and will influence the salmon price.

The Annual Report 2018 is available on request from Bakkafrost and on Bakkafrost's website, www.bakkafrost.com.

Events after the Date of the Statement of Financial Position

From the date of the statement of financial position until today, no events have occurred which materially influence the information provided by this report.

Statement by the Management and the Board of Directors on the Interim Report

The Management and the Board of Directors have today considered and approved the interim report of P/F Bakkafrost for the period 1 January 2019 to 30 June 2019.

The interim report, which has not been audited or reviewed by the company's independent auditors, has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and Faroese disclosure requirements for listed companies.

Glyvrar, August 19th, 2019

Management:

Regin Jacobsen CEO

The Board of Directors of P/F Bakkafrost:

Rúni M. Hansen Johannes Jensen Teitur Samuelsen Chairman of the Board Deputy Chairman of the Board Board Member

Øystein Sandvik Annika Frederiksberg Einar Wathne Board Member Board Member Board Member

In our opinion, the accounting policies used are appropriate, and the interim report gives a true and fair view of the Group's financial positions at 30 June 2019, as well as the results of the Group activities and cash flows for the period 1 January 2019 to 30 June 2019.

In our opinion, the management's review provides a true and fair presentation of the development in the Group operations and financial circumstances of the

results for the period and of the overall financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group.

Over and above the disclosures in the interim report, no changes in the Group's most significant risks and uncertainties have occurred relative to the disclosures in the annual report for 2018.

Consolidated Income Statement

For the period ended 30 June 2019

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18
Op tin era g r ev en ue	94 6, 50 6	95 31 6 4,	91 0, 21 1, 5	80 2 1, 5, 47
rch of od Pu ase go s	-36 6, 89 9	-25 4, 32 4	-72 8, 43 9	-54 3, 46 9
Ch e i n i ent d b iolo ica l as set s (a t c ost ) ang nv ory an g	13 4, 29 6	6, 77 0	16 8, 30 9	38 16 3 ,
Sal d p l ex ary an ers on ne pen ses	-11 69 0 7,	-87 11 5 ,	-23 2, 24 2	-17 8, 29 8
Oth tin er op era g e xp en ses	-19 9, 65 6	-16 3, 17 2	-39 9, 80 9	-35 1, 39 6
cia tio De pre n	-57 79 3 ,	-48 58 2 ,	-11 1, 56 6	-94 35 7 ,
tio Op l EB IT * era na	33 8, 76 4	40 7, 89 3	60 6, 46 8	67 6, 11 5
Fai alu dju f b iolo ica l as stm ent set r v e a s o g s	-65 53 6 ,	34 77 7 ,	-47 66 5 ,	14 1, 90 8
On tra cts ero us con	0	-6, 10 9	0	-6, 10 9
iat Inc e f om rom as soc es	-4, 40 8	-1, 69 5	2, 53 9	72 4
Rev tax en ue	-32 03 1 ,	-31 41 1 ,	-64 02 5 ,	73 8 -57 ,
nin bef in d t ( IT) Ear ter est EB gs ore an ax es	23 6, 78 9	40 3, 45 5	49 7, 31 7	75 4, 90 0
Ne t in ter est re ve nue	63 8	62 1	74 9	1, 62 2
Ne t in ter est ex pen ses	-2, 53 4	-3, 01 9	-4, 39 9	94 4 -7,
eff Ne t c ect urr en cy s	-4, 76 0	12 34 7 ,	-3, 33 5	-81 2
Oth fin ial er anc ex pe nse s	-97 4	-81 5	-1, 83 8	-2, 44 2
nin Ear bef ta s ( EB T) gs ore xe	22 9, 15 9	41 2, 58 9	48 8, 49 4	74 5, 32 4
Tax es	-40 55 7 ,	-73 83 3 ,	-87 05 6 ,	-13 4, 26 7
fit los s fo r th eri od Pro or e p	18 8, 60 2	33 8, 75 6	40 1, 43 8	61 1, 05 7
fit los s fo r th at tri bu tab le t Pro or e y ear o
llin int No tro sts n-c on g ere	0	0	0	0
f P kaf Ow / F B ak t ne rs o ros	18 8, 60 2	33 8, 75 6	40 1, 43 8	61 1, 05 7
nin sh ( K) Ear DK gs per are	3.8 8	6.9 6	8.2 5	12 .56
Dil d e ing sha ( K) ute DK arn s p er re	3.8 8	6.9 6	8.2 5	12 .56

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

Consolidated Statement of Comprehensive Income

For the period ended 30 June 2019

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18
fit for th eri od Pro e p	18 8, 60 2	33 8, 75 6	40 1, 43 8	61 1, 05 7
Ch fin ial de riv ati ang es on anc ve s	59 6	-21 4	32 2	-16 04 5 ,
f in eff He e t ect reo com ax	-91	39	-58	5, 91 4
har e-b d p Res e t nt erv o s ase ay me	1, 29 5	57 0	2, 13 4	74 5
ati dif Cu tra nsl fer rre ncy on enc es	70 8	0	70 9	1
Ad jus of sha tm ent tre asu ry res	63 3	26 8 1,	-2, 36 0	0 1, 14
siv e in ifie Ne t o the reh e t o b ecl d t r co mp en com e r ass o
fit s in eri los bse t p od pro or su qu en s	3, 14 1	1, 66 3	74 7	-8, 24 5
siv e in sif ied Ne t o the reh ot to be las to r co mp en com e n rec
fit los s in bse eri od t p pro or su qu en s	0	0	0	0
Oth he nsi in er com pre ve com e	3, 14 1	1, 66 3	74 7	-8. 24 5
tal he reh siv e in e f the rio d To ot r co mp en com or pe	19 1, 74 3	34 0, 41 9	40 2, 18 5	60 2.8 12
Co reh siv e in e f the rio d a ttr ibu tab le t mp en com or pe o
llin int No tro sts n- con g ere	0	0	0	0
f P / akk afr Ow F B ost ner s o	19 1, 74 3	34 0, 41 9	1, 06 9, 19 7	60 2.8 12

Consolidated Statement of Financial Position

As at 30 June 2019

	30 Ju ne	31 De c
DK K 1 00 0 ,	20 19	20 18
AS SET S
No t a ts n-c urr en sse
Int ible set ang as s	39 0, 6 45	38 9, 74 5
Pro rty lan t a nd uip nt pe , p eq me	3, 11 2, 33 1	2, 88 4, 32 5
Fin ial ets anc ass	11 1, 26 9	11 2, 76 6
eiv ab les Lon ter g- m rec	3, 44 6	9, 20 0
To tal t a ts no n-c urr en sse	3, 61 7, 50 1	3, 39 6, 03 6
Cu nt ets rre ass
Bio log ica l as set s ( bio ss) ma	1, 23 1, 49 5	1, 35 8, 46 2
Inv ent ory	69 7, 07 3	43 8, 84 7
To tal in nto ve ry	1, 92 8, 56 8	1, 79 7, 30 9
cei ble Ac nts cou re va	37 1, 96 0	26 9, 34 8
Oth eiv ab les er rec	28 88 4 ,	22 93 6 ,
tal cei ble To re va s	40 84 4 ,	29 2, 28 4
h a nd sh uiv ale Cas nts ca eq	32 2, 69 4	31 6, 89 4
tal To nt ets cu rre ass	2, 65 2, 106	2, 40 6, 48 7
TO TA L A SSE TS	6, 26 9, 60 8	5, 80 2, 52 3

DK K 1 00 0 ,	30 Ju ne 20 19	31 De c 20 18
EQ UIT Y A ND LIA BIL ITI ES
uit Eq y
Sha ita l re cap	48 85 9 ,	48 85 8 ,
Oth uit er eq y	4, 03 5, 00 0	4, 02 8, 17 1
tal uit To eq y	08 3, 85 9 4,	07 02 9 4, 7,
t li ilit ies No ab n-c urr en
fer red d o the De r ta an xes	62 2, 50 0	53 4, 43 0
int bea rin de bt Lon ter st- g- m ere g	1, 06 6, 26 6	81 2, 05 3
Oth de bt er	71 44 5 ,	0
t li ilit ies To tal ab no n-c urr en	1, 76 0, 21 1	1, 34 6, 48 3
Cu liab ilit ies nt rre
Fin ial de riv ati anc ve s	0	32 0
Ac nts ble d o the r d ebt cou pa ya an	42 5, 53 8	37 8, 69 1
To tal nt liab ilit ies cu rre	42 5, 53 8	37 9, 01 1
lia bil itie To tal s	2, 18 5, 74 9	1, 72 5, 49 4
TO TA L E Q UIT Y A ND LIA BIL ITI ES	6, 26 9, 60 8	5, 80 2, 52 3

Consolidated Cash Flow Statement

For the period ended 30 June 2019

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18
nin bef in d t ( IT) Ear ter est EB gs ore an ax es	23 6, 78 9	40 3, 45 5	49 7, 31 7	75 4, 90 0
Ad jus tm ent s fo rite -do nd de cia tio r w wn s a pre n	57 79 3 ,	27 58 2 ,	11 1, 56 6	73 35 7 ,
Ad jus tm ent s fo alu dju stm ent of bi r v e a om ass	65 53 6 ,	-34 77 7 ,	47 66 5 ,	-14 1, 90 8
Ad jus s fo r in e f iat tm ent com rom as soc es	4, 40 8	1, 69 5	-2, 53 9	-72 4
Ad jus s fo eff tm ent ect r c urr en cy s	-4, 57 8	17 07 8 ,	-40 2	7, 52 3
Ad jus s fo isio n f tm ent tra cts r p rov or on ero us con	0	6, 10 9	0	6, 10 9
Ch in inv ent an ge ory	-14 0, 34 3	-8, 05 3	-17 8, 92 4	-41 73 0 ,
in eiv Ch ab les an ge rec	55 44 9 ,	-10 6, 89 8	-11 2, 00 7	-15 68 8 ,
Ch e i de bts ent ang n c urr	51 76 1 ,	-26 72 4 ,	40 64 2 ,	5, 80 3
h f low fro ion Cas rat m o pe s	32 6, 81 5	27 9, 46 7	40 3, 31 8	64 7, 64 2
Cas h f low fro inv est nts m me
ds fro ale of fix ed Pro ets cee m s ass	0	25 00 0 ,	0	25 00 0 ,
fo has f fi xed Pay nts set me r p urc e o as s	-15 6, 99 5	-13 1, 08 9	-26 6, 95 2	-24 2, 56 0
t in in fin ial Ne stm ent ets ve anc ass	0	-1, 88 3	3, 98 8	-1, 88 3
Cas h f low fro inv est nts m me	6, 99 -15 5	-10 97 2 7,	-26 2, 96 4	-21 9, 3 44
h f fro m f ina nci Cas low ng
Ch of int bea rin de bt (s ho nd lon ) st- rt a an ge ere g g	20 9, 93 1	-42 90 5 ,	26 9, 44 6	63 70 9 ,
Fin ial inc anc om e	64 0	62 1	75 1	1, 62 2
Fin ial anc ex pen ses	-3, 50 8	-3, 83 4	-6, 23 7	-10 38 6 ,
Ne t p eed s f le o f o sh roc rom sa wn are s	5, 75 0	1, 26 9	2, 99 9	2, 31 2
Div ide nd id pa	-40 1, 51 3	-51 0, 67 8	-40 1, 51 3	-51 0, 67 8
h f low fro m f ina nci Cas ng	-18 8, 70 0	-55 5, 52 7	-13 4, 55 4	-45 3, 42 1
Ne t c ha in sh d c ash uiv ale nts in rio d nge ca an eq pe	-18 88 0 ,	-38 4, 03 2	5, 80 0	-25 22 2 ,
h a nd h e iva len ing ba lan Cas ts cas qu – o pen ce	34 1, 57 4	66 8, 36 1	31 6, 89 4	30 9, 55 1
Cas h a nd sh uiv ale nts los ing ba lan tot al ca eq – c ce	32 2, 69 4	28 32 9 4,	32 2, 69 4	28 32 9 4,

Consolidated Statement of Changes in Equity

As at 30 June 2019

		Sha re		Sha re-	Cur ren cy			Bio ir s Fa mas
	Sha re	Pre miu m	Tre asu ry	bas ed	tran slat ion		Pro ed pos	Val dju st- ue a	Ret aine d	Tot al
DKK 1,0 00	Cap ital	Res erv e	Sha res	Pay nt me	diff ere nce s	Der ivat ives	Div ide nd	nts me	Ear nin gs	Equ ity
Equ ity 01. 01. 201 9	48, 858	306 ,53 7	-15 ,52 5	6,1 53	6,1 76	-26 4	403 ,07 9	382 ,77 0	2,9 39, 246	4,0 77, 029
soli dat ed p rofi Con t	0	0	0	0	0	0	0	-47 ,66 5	455 ,26 0	407 ,59 5
Oth reh ive inco er c omp ens me:
Cha fin ial d eriv ativ nge s on anc es	0	0	0	0	0	322	0	0	0	322
Her eof inc e ta x ef fect om	0	0	0	0	0	-58	0	0	0	-58
Sha re-b d p ent ase aym	0	0	0	-2,3 60	0	0	0	0	0	-2,3 60
Cur cy t slat ion diff ren ran ere nce s	0	0	0	0	709	0	0	0	0	709
ive inco Tot al o the reh r co mp ens me	0	0	0	-2,3 60	709	264	0	0	0	-1,3 87
sive inc Tot al c hen om pre om e	0	0	0	-2,3 60	709	264	0	-47 ,66 5	455 ,26 0	406 ,20 8
ctio ith Tra nsa n w own ers:
har Tre asu ry s es	0	0	2,1 34	0	0	0	0	0	0	2,1 34
Paid t di vid end -ou	0	0	0	0	0	0	-40 3,07 9	0	1,56 6	-40 13 1,5
Tot al t tion wit h ow ran sac ner s	0	0	2,1 34	0	0	0	-40 3,0 79	0	1,56 6	-39 9,3 79
in e qui Tot al c han ty ges	0	0	2,1 34	-2,3 60	709	264	-40 3,0 79	-47 ,66 5	456 ,82 6	6,8 29
al e qui ty 3 0.0 6.2 019 Tot	48, 858	306 ,53 7	-13 ,39 1	3,79 3	6,8 85	0	0	335 ,10 5	3,39 6,0 72	4,0 83, 859
ity Equ 01. 01. 201 8	48, 858	306 ,53 7	-18 ,15 9	3,8 74	6,2 71	-10 4,3 51	513 ,00 9	186 ,95 1	2,68 3,4 39	3,6 26,4 29
Con soli dat ed p rofi t	0	0	0	0	0	0	0	195 ,81 9	772 ,45 5	968 ,27 4
Oth reh ive inco er c ens me:
omp Cha fin ial d eriv ativ	0	0	0	0	0	126 5	0	0	-13 48	-11 3
nge s on anc es eof inc x ef fect Her e ta	0	0	0	0	0	,93 -22 8	0	0	8,7 48	,81 0
om Sha re-b ent	0	0	0	9	0	,84 0	0	0	22,8 0
d p ase aym slat ion diff				2,27						9 2,27
Cur cy t ren ran ere nce s	0	0	0	0	-95	0	0	0	0	-95
Tot al o the reh ive inco r co mp ens me	0	0	0	2,2 79	-95	104 ,08 7	0	0	-11 5,90 0	-9,6 29
Tot al c hen sive inc om pre om e	0	0	0	2,2 79	-95	104 ,08 7	0	195 ,81 9	656 ,55 5	958 ,64 5
ctio ith Tra nsa n w own ers:
har Tre asu ry s es	0	0	2,6 34	0	0	0	0	0	0	2,6 34
Paid t di vid end -ou	0	0	0	0	0	0	-51 3,00 9	0	2,3 31	-51 0,6 78
ed d ivid end Pro pos	0	0	0	0	0	0	403 ,07 9	0	-40 3,07 9	0
al t tion wit h ow Tot ran sac ner s	0	0	2,6 34	0	0	0	-10 9,9 30	0	-40 0,7 48	-50 8,0 44
Tot al c han in e qui ty ges	0	0	2,6 34	2,2 79	-95	104 ,08 7	-10 9,9 30	195 ,81 9	255 ,80 7	450 ,60 0
al e qui Tot ty 3 1.12 .20 18	48, 858	306 ,53 7	-15 ,52 5	6,1 53	6,1 76	-26 4	403 ,07 9	382 ,77 0	2,9 39, 245	4,0 77, 029
ity Equ 01. 01. 201 8	48, 858	306 ,53 7	-18 ,15 9	3,8 74	6,2 71	-10 4,3 51	513 ,00 9	186 ,95 1	2,68 3,4 39	3,6 26,4 29
Con soli dat ed p rofi t	0	0	0	0	0	0	0	141 ,90 8	475 ,98 5	617 ,89 3
Oth reh ive inco er c omp ens me:
Cha fin ial d eriv ativ nge s on anc es	0	0	0	0	0	122,7 03	0	0	-138 ,748	-16 ,04 5
eof inc x ef fect Her e ta om	0	0	0	0	0	-16,9 34	0	0	22,84 8	5,9 14
Sha re-b d p ent ase aym	0	0	0	745	0	0	0	0	0	745
slat ion diff Cur cy t ren ran ere nce s	0	0	0	0	1	0	0	0	0	1
al o the reh ive inco Tot r co mp ens me	0	0	0	745	1	105,7 69	0	0	-115 ,900	-9,3 85
al c hen sive inc Tot om pre om e	0	0	0	745	1	105,7 69	0	08 141,9	85 360,0	608 ,50 8
Tra ctio ith nsa n w own ers:
Tre har asu ry s es	0	0	1,14 0	0	0	0	0	0	0	1,14 0
Paid t di vid end -ou	0	0	0	0	0	0	-51 3,00 9	0	2,3 31	-51 0,6 78
tion wit Tot al t h ow ran sac ner s	0	0	1,14 0	0	0	0	-51 3,00 9	0	2,3 31	-50 9,5 38
Tot al c han in e qui ty ges	0	0	1,14 0	745	1	105,7 69	-513 ,009	141,9 08	362,4 16	98, 970
Tot al e 0.0 6.2 018	858	306 7	-17 0	19	72		0	59	5	398
qui ty 3	48,	,53	,02	4,6	6,2	1,418		328,8	3,04 5,75	3,7 25,

Notes to the Account

Accounting Policy

General Information

P/F Bakkafrost is a limited company incorporated and domiciled in the Faroe Islands.

The Group's Annual Report as at 31December 2018 is available upon request from the company's registered office at Bakkavegur 9, FO-625 Glyvrar, Faroe Islands, or at www.bakkafrost.com.

This Condensed Consolidated Interim Report is presented in DKK.

Note 1. Statement of Compliance

This Condensed Consolidated Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting as adopted by the EU. It does not include all the information required for the full Annual and Consolidated Report and Accounts and should be read in conjunction with the Annual and Consolidated Report and Accounts for the Group as at 31 December 2018.

This interim report has not been subject to any external audit.

Note 2. Significant Accounting Policies

The accounting policies applied by the Group in this Condensed Consolidated Interim Report are the same as those applied in the Annual Report as at and for the year ended 31 December 2018. The Group has, however, as mentioned in the Annual Report 2018, applied the IFRS 16 Leases standard from 1 January 2019.

Note 3. Estimates and Risk Exposures

The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting principles and recognized amounts of assets, liabilities, income and expenses. The most significant estimates relate to the valuation of biological assets, which are measured at fair value. Estimates and underlying assumptions are reviewed on an ongoing basis and are based on the management's best assessment at the time of reporting. All changes in estimates are reflected in the financial statements as they occur.

The accounting estimates are described in the notes to the financial statements in the Annual Report 2018.

For other risk exposures, reference is made to the Management's Statement in the Annual Report for 2018, where Bakkafrost's operational and financial risks are described, as well as to Note 4.1 (Financial risk management) in the same report.

The risks and uncertainties described therein are expected to remain.

Note 4. Biomass

	30 Ju ne	30 Ju ne	31 De c
00 0 DK K 1 ,	20 19	20 18	20 18
Bio log ica l as ing set nt 01 .01 s c arr y am ou	1, 35 8, 46 2	1, 09 6, 66 5	1, 09 6, 66 5
du rod ion rch Inc e t uct rea se o p or pu ase s	69 9, 14 4	58 1, 78 3	1, 33 3, 16 0
Red ion du o h ing le ( f g ds sol d) uct e t est ts o arv or sa cos oo	-78 9, 06 1	-72 0, 12 6	-1, 27 3, 15 0
Fai alu dju th e b inn ing of th eri od ed stm ent at r v e a eg e p rev ers	-38 2, 77 5	-18 6, 95 6	-18 6, 95 6
Fai alu dju th nd of the rio d stm ent at r v e a e e pe	33 5, 11 0	32 8, 86 4	38 2, 77 5
al o f e lim ina tio t th e b inn ing of th eri od Rev ers n a eg e p	53 79 0 ,	59 75 8 ,	59 75 8 ,
Eli mi ion nat s	-43 17 5 ,	-52 71 4 ,	-53 79 0 ,
Bio log ica l as ing the d o f th eri od set nt at s c arr y am ou en e p	1, 23 1, 49 5	1, 10 7, 27 4	1, 35 8, 46 2
ice bi olo ica l as Co st set pr g s	93 9, 56 0	82 7, 91 9	1, 02 9, 47 7
ita lize d i Ca nte t p res	0	3, 20 5	0
Fai alu dju th nd of the rio d stm ent at r v e a e e pe	33 5, 11 0	32 8, 86 4	38 2, 77 5
Eli mi ion nat s	-43 17 5 ,	-52 71 4 ,	-53 79 0 ,
Bio ica ing log l as set nt s c arr y am ou	1, 23 1, 49 5	1, 10 7, 27 4	1, 35 8, 46 2
Bio ( lw ) ton ma ss nes
kg < 1	2, 21 4	2, 61 5	1, 95 8
1 k kg 2 g <	5, 10 3	3, 20 0	2, 95 9
2 k kg 3 g <	3, 55 0	5, 01 0	5, 18 9
3 k kg 4 g <	4, 63 5	2, 82 0	6, 01 0
4 k g <	17 75 6 ,	14 75 0 ,	22 96 2 ,
lum f b iom Vo at e o ass se a	33 25 8 ,	28 39 5 ,	39 07 8 ,

	30 Ju ne	30 Ju ne	31 De c
	20 19	20 18	20 18
Nu mb of fis hes ( tho nd) er usa
< 1 kg	5, 17 0	5, 63 8	4, 95 1
1 k 2 kg g <	3, 71 3	2, 25 4	2, 11 3
2 k 3 kg g <	1, 45 4	1, 95 1	2, 04 4
3 k kg 4 g <	35 8 1,	85 0	78 2 1,
4 k g <	3, 33 5	2, 80 9	35 9 4,
tal mb of fis hes at To nu er se a	03 0 15 ,	13 50 2 ,	24 9 15 ,
mb of olt ele d ( tho nd ) Nu er sm s r ase usa
mi rth Far No ng	2, 81 0	26 2	3, 97 8
mi Far We st ng	2, 49 0	5, 64 8	8, 60 5
tal mb of olt ele d To nu er sm s r ase	5, 30 0	5, 91 0	12 58 3 ,
Sen sit ivi ty in 00 0 DK K 1 ,
Ch e i n d isc 1% nt rat ang ou e +	98 42 5 ,	40 85 4 ,	93 6 58 ,
Ch e i n d isc 1% nt rat ang ou e -	-11 1, 34 2	-96 94 0 ,	-10 99 4, 1
Ch e i ale ric 5 D KK ang n s s p e +	0, -21 24 4	69 -18 8, 2	-22 4, 14 3
Ch e i ale ric 5 D KK ang n s s p e -	21 0, 24 4	18 8, 69 2	22 4, 14 3
Ch e i n b iom lum 1% ang ass vo e +	-5, 88 6	-5, 17 9	-6, 55 1
Ch e i n b iom lum 1% ang ass vo e -	17 61 5 ,	5, 17 9	6, 55 1
On fo ard ice s in CA Os lo* EU R F e y ear rw pr
rio d e nd Pe	6.5 6	6.4 1	6.0 1
1 Q ( for rd) wa	6.0 3	6.1 9	6.4 8
( for rd) 2 Q wa	5.9 3	6.4 2	6.5 2
( for rd) 3 Q wa	6.5 1	6.6 2	5.9 4
( for rd) 4 Q wa	6.6 1	6.6 1	6.1 2

* Source Fish Pool

Note 5. Segments

ing t Fa rm se g me n	Q 2	Q 2	H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8
l re Ex ter na ve nu e	8 2 5 4, 5 7	6 9, 0 2 7 7	3, 9 1, 1 4 4 7	2 6 3, 1, 1 1 4
l re In ter na ve nu e	0 8 6 1 7 4,	9 6 5, 7 5	3 0, 8 7 5 1	8, 3 2 1 7 4
l re To ta ve nu e	8, 6 3 7 5 1	8 3 7 7 4, 7	0 1, 5 1 4, 1 5	3 8 1, 4 4 1, 4
ing Op t era ex p en se s	-4 0 9, 2 9 1	-3 4 5, 1 1 4	-8 9 3, 0 5 5	-7 4 8, 4 1 1
ia ion d a iza ion De t t t p rec an mo r	-4 5, 8 8 3	-3 6, 4 8 1	-8 7, 7 7 8	-7 1, 3 9 6
ion l Op t E B I T era a	3 0 3, 4 3 9	3 9 3, 1 8 8	5 3 3, 1 8 2	6 2 1, 6 3 1
ir v lue d j f b io log ica l a Fa tm ts ts a a us en o sse	-6 5, 5 3 6	3 4, 7 7 7	-4 7, 6 6 5	1 4 1, 9 0 8
fro ia Inc tes om e m as so c	0	0	2, 5 3 9	0
Re tax ve nu e	-3 2, 0 3 1	-3 1, 4 1 1	-6 4, 0 2 5	-5 7, 7 3 8
ing be fo in d ( ) Ea ter t a tax E B I T rn s re es n es	2 0 5, 8 7 2	3 9 6, 5 5 4	4 2 4, 0 3 1	7 0 5, 8 0 1
in Ne t ter t r es ev en ue	9 9 4	6 2 1	1, 1 0 5	1, 6 2 2
in Ne t ter t e es xp en se s	-1 2, 0 1 0	-2, 6 1 7	-1 3, 5 0 5	-6, 6 5 0
f fec Ne t c ts ren ur cy e	4, 9 1 5	9, 0 7 8	4, 6 5 9	-5, 2 9 4
he f ina ia l e O t nc en r xp se s	-9 4 3	-6 8 8	-1, 7 5 9	-2, 1 7 6
ing be fo ( ) Ea tax E B T rn s re es	1 9 8, 8 2 9	4 0 2, 9 4 8	4 1 4, 5 3 1	6 9 3, 3 0 3
Ta xe s	-3 3, 0 9 8	-6 7, 2 1 6	-7 9, 8 6 4	-1 1 0, 9 1 3
f i fo io Pr t o los t he d o r s r p er	1 6 5, 7 3 1	3 3 5, 7 3 2	3 3 4, 6 6 7	5 8 2, 3 9 0

Va lue d de d p du ts a ro c	Q 2	Q 2	H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8

ter l re Ex na ve nu e	2 3 2 7, 5 5	9 3, 6 8 1	9 8, 2 6 4 1	8 6, 6 2 1 1
ter l p ha f r ter ia l In na urc se o aw m a	-1 0 8 6 7 4,	-9 6 5, 7 5	-3 0, 1 8 7 5	-1 8, 3 2 7 4
Op ing t era ex p en se s	8, 8 -5 7 4	-9, 9 9 7	6, 8 3 6 -1 1	-2 8, 3 6 8
ia ion d a iza ion De t t t p rec an mo r	3 -4, 7 5	8 -4, 7 1	-9, 8 3 4	-8, 3 4 4
Op ion l t E B I T era a	-3 5	6, 8 9 8 -1	2 8 9 1,	-2 8, 5 1 4
is ion fo Pro tra ts v r o ne ro us co n c	0	-6, 1 0 9	0	-6, 1 0 9
ing be fo in d ( ) Ea ter t a tax E B I T rn s re es n es	-3 5	-2 3, 0 0 7	1, 2 8 9	-3 4, 6 2 3
in Ne t ter t e es xp en se s	-4 4	-6 5	-1 0 1	-6 7
f fec Ne t c ts ur ren cy e	0	1 0	0	-3 0 8
he f ina ia l e O t r nc xp en se s	0	-1 5	0	-2 0
ing be fo ( ) Ea tax E B T rn s re es	-7 9	-2 3, 0 7 7	1, 1 8 8	-3 5, 0 1 8
Ta xe s	1 4	4, 1 5 4	-2 1 4	2, 2 0 4
f i los fo he io d Pr t o t o r s r p er	-6 5	-1 8, 9 2 3	9 7 4	-3 2, 8 1 4

In H1 2019, one customer – as defined in IFRS 8.34 – represents DKK 268 million, corresponding to 54% of the revenue in the VAP segment.

F is hm l, F is h O i l a d F is h Fe d ea n e	Q 2	Q 2	H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8
l re Ex ter na ve nu e	2 2 1 4, 4 7	8 6 1 1, 7 1	2 6 8, 9 3 5	3 5 5, 7 4 7
l re In ter na ve nu e	9, 0 2 0 1 5	6 2 0 1 4 4,	2 9 8, 2 6 5	2 0, 9 0 3 7
l re To ta ve nu e	2 8 3, 4 4 7	3 2 6, 2 9 1	5 6 6, 8 5 8	6 2 6, 6 5 0
Co f g ds l d t o s oo so	-1 6 9, 2 7 3	-2 0 4, 4 3 1	-3 3 0, 3 5 6	-3 6 1, 3 9 5
Op ing t era ex p en se s	-5 5, 7 9 2	-5 5, 8 1 3	-1 1 2, 8 6 8	-1 1 2, 7 7 5
ia ion d a iza ion De t t t p rec an mo r	-7, 1 5 7	-7, 3 2 0	-1 4, 3 0 5	-1 4, 5 2 7
ion l Op t E B I T era a	5 1, 2 2 5	5 8, 7 2 7	1 0 9, 3 2 9	1 3 7, 9 5 3
fro ia Inc tes om e m as so c	-4, 4 0 8	-1, 6 9 5	0	7 2 4
ing be fo in d ( ) Ea ter t a tax E B I T rn s re es n es	4 6, 8 1 7	5 7, 0 3 2	1 0 9, 3 2 9	1 3 8, 6 7 7
in Ne t ter t e es xp en se s	-3 5 6	-3 3 7	-6 6 9	-1, 2 2 7
f fec Ne t c ts ur ren cy e	-1 5 5	3, 2 5 9	1, 5 2 6	4, 7 9 0
he f ina ia l e O t r nc xp en se s	-3 0	-1 1 2	-7 8	-2 4 6
ing be fo ( ) Ea tax E B T rn s re es	4 6, 2 7 4	5 9, 8 4 2	1 1 0, 1 0 8	1 4 1, 9 9 4
Ta xe s	-8, 3 2 9	-1 0, 7 7 1	-1 9, 8 1 9	-2 5, 5 5 8
f i fo io Pr t o los t he d o r s r p er	3 7, 9 4 5	4 9, 0 7 1	9 0, 2 8 8	1 1 6, 4 3 6

Reconciliation of reportable segments

ing be fo ( ) to Gr tax E B T ou p ea rn s re es	Q 2	Q 2	H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8
ing Fa rm	1 9 8, 8 2 9	4 0 2, 9 4 8	4 1 4, 5 3 1	6 9 3, 3 0 3
( lue d de d du ) V A P Va A Pr ts o c	-7 9	-2 3, 0 7 7	1, 1 8 8	-3 5, 0 1 8
is is i is F O F ( F hm l, F h o l a d f h Fe d ) ea n e	4 6, 2 7 4	5 9, 8 4 2	1 1 0, 1 0 8	1 4 1, 9 9 4
im ina ion E l t s	-1 5, 8 6 5	-2 7, 1 2 4	-3 7, 3 3 2	-5 4, 9 5 5
ing fo Gr be tax ( E B T ) ou p ea rn s re es	2 2 9, 1 5 9	4 1 2, 5 8 9	4 8 8, 4 9 5	7 4 5, 3 2 4

ia i i ies As ts d l b l t t se an p er se g me n	3 0 Ju ne	3 0 Ju ne	3 1 De c
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 8
ing Fa rm	5, 0 0 5, 8 7 3	5, 0 6 2, 2 9 9	4, 8 6 0, 2 2 7
V A P ( Va lue d de d p du ts ) a ro c	1 8 6, 0 1 7	2 0 7, 8 2 7	1 9 2, 8 4 1
F O F ( F is hm l, F is h O i l a d F is h Fe d ) ea n e	9 9 6, 3 0 5	9 8 2, 1 4 8	7 4 9, 4 5 5
E l im ina t ion s	8 1, 4 1 3	-7 8 1, 9 5 2	0
To ta l a ts sse	6, 2 6 9, 6 0 8	5, 4 7 0, 3 2 2	5, 8 0 2, 5 2 3
Fa ing rm	2, 0 0 4, 8 9 7	5 2 9, 8 6 7	1, 4 8 2, 7 5 1
( lue d de d p du ) V A P Va ts a ro c	2 9 7, 5 5	2 2, 3 9 7	3 0 1, 7 5
O ( is hm l, is h O i l a d is h d ) F F F F F Fe ea n e	0, 6 0 1 7 1	6 3 3, 6 8 1	2 0 9, 6 3 4
l im ina ion E t s	3 0 8 -1 7,	9, 0 5 5 5 1	2, 0 3 4
l l ia b i l i ies To ta t	2, 1 8 5, 7 4 9	1, 7 4 4, 9 2 4	1, 7 2 5, 4 9 4

Note 6. Capital Commitments

The Group had capital expenditure committed but not provided in these accounts at the date of the Statement of Financial Position of approximately DKK 321 million. DKK 187 million relate to the building of new hatchery stations. DKK 29 million relate to the building of a new biogas plant.

Note 7. Transactions with Related Parties

Note 5.2 in Bakkafrost's Annual Report for 2018 provides detailed information on related parties' transactions.

Transactions between P/F Bakkafrost and its subsidiaries meet the definition of related party transactions. As these transactions are eliminated on consolidation, they are not disclosed as related party transactions.

Note 8. Fair Value Measurements

All assets/liabilities, for which fair value is recognized or disclosed, are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.

Level 2: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable).

Level 3: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).

For biological assets, the fair value calculation is done using a valuation model (level 3 in the valuation hierarchy) where the value is estimated based on observable market prices per period end.

For more information on these calculations, please refer to Note 4.

For assets/liabilities that are recognized at fair value on a recurring basis, the Group determines, whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement).

There have been no transfers into or out of Level 3 fair value measurements.

As at 30 June 2019, the Group held the following classes of assets/liabilities measured at fair value:

D K K 1, 0 0 0		Co t s
d l ia b i l i ies d a fa ir v lue As ts t t se an m ea su re a	ir v lue Fa a	t am ou n	l Le 1 ve	l Le 2 ve	l Le 3 ve
io log ica l a ( b iom ) B ts sse as s	1, 2 3 1, 4 9 5	8 9 6, 3 8 5	0	0	2 3 9 1, 1, 4 5
d a fa ir v lue 3 0 / 6- 2 0 9 As ts t 1 se me as ur e a	2 3 9 1, 1, 4 5	8 9 6, 3 8 5	0	0	2 3 9 1, 1, 4 5
ia i i ies fa ir v L b l t d a t lue 3 0 / 6- 2 0 1 9 m ea re a su	0	0	0	0	0
io log ica l a ( b iom ) B ts sse as s	1, 1 0 7, 2 7 5	7 7 8, 4 0 9	0	0	1, 1 0 7, 2 7 5
fa ir v As ts d a t lue 3 0 / 6- 2 0 1 8 se me as ur e a	1, 1 0 7, 2 7 5	7 7 8, 4 0 9	0	0	1, 1 0 7, 2 7 5
ia i i ies ir v L b l t d a t fa lue 3 0 / 6- 2 0 1 8 m ea su re a	0	0	0	0	0
B io log ica l a ts ( b iom ) sse as s	1, 3 5 8, 4 6 2	9 7 5, 6 8 7	0	0	1, 3 5 8, 4 6 2
As ts d a t fa ir v lue 3 1 / 1 2- 2 0 1 8 se me as ur e a	1, 3 5 8, 4 6 2	9 7 5, 6 8 7	0	0	1, 3 5 8, 4 6 2
L ia b i l i t ies d a t fa ir v lue 3 1 / 1 2- 2 0 1 8 m ea su re a	0	0	0	0	0

Note 9. Business Combinations

H1 2019: There have been no new business combinations in H1 2019.

2018:

On 1 July 2018, Bakkafrost purchased the business and assets in North Landing via Bakkafrost USA LLC.

The purchase is paid in cash and financed by existing facilities.

The key employees of North Landing will continue in Bakkafrost USA LLC.

The fair value of intangible assets has been determined on an estimated fair value. Fair value has been identified in customer relationship employing generally accepted valuation techniques. The market value of the customer relationship is measured to DKK 6.2 million.

The fair value of property, plant and equipment has been determined based a 3rd party valuation.

From 1 July to 31 December 2018, the acquired business contributed with a result of -8.5 mDKK to the Group's result.

Identifiable assets assumed:

D K K	1,	0 0 0
-------------	----	-------------	--

l n i de i f ia b le To ta t t ts e n as se	2 8, 9 1 0
Inv to en ry	1, 5 9 0
lan d e ip Pro ty t a t p er p n qu me n ,	1 3, 3 7 2
i b le In tan ts g as se	1 3, 9 4 8

Note 10. APM

- Alternative Performance Measures

Bakkafrost's financial information is prepared in accordance with international financial reporting standards (IFRS). In addition, the management's intention is to provide alternative performance measures, which are regularly reviewed by the management to enhance the understanding of the company's performance, but not replacing the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. Bakkafrost's experience is that these APM's are frequently used by analysts, investors and other parties.

These APM's are adjusted IFRS measures, defined, calculated and used in a consistent and transparent manner over the years and across the company where relevant.

NIBD

Net interest-bearing debt consists of both current and non-current interest-bearing liabilities, less related current and non-current hedging instruments, financial instruments, such as debt instruments and derivatives and cash and cash equivalents. The net interest-bearing debt is a measure of the Group's net indebtedness that provides an indicator of the overall balance sheet strength. It is also a single measure that can be used to assess both the Group's cash position and its indebtedness. The use of the term 'net debt' does not necessarily mean that the cash included in the net debt calculation is available to settle the liabilities included in this measure. Net debt is an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate interest-bearing liabilities (both current and non-current), derivatives and cash and cash equivalents. A reconciliation is provided below.

	3 0 Ju ne	3 1 De c
0 0 0 D K K 1,	2 0 9 1	2 0 8 1
Ca h a d c h e iva len ts s n as qu	3 2 2, 6 9 4	3 6, 8 9 1 4
i fo in d c De t ter t- p os r es an ur ren cy sw ap	0	0
iva ive De t r s	0	-3 2 0
d s ho in be ing de b Lo t- ter ter t- t ng - a n r m es ar	-1, 0 6 6, 2 6 6	-8 1 2, 0 5 3
t in ter t- be ing de b t Ne es ar	3, 2 -7 4 5 7	9 9 -4 5, 4 7

Operational EBIT

Operational EBIT is EBIT aligned for fair value adjustments, onerous contracts provisions, income from associates and revenue tax.

Operational EBIT is a major alternative performance measure in the salmon farming industry. A reconciliation from EBIT to Operational EBIT is provided below.

	Q 2	Q 2	H 1	H 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8
E B I T	2 3 6, 7 8 9	4 0 3, 4 5 5	4 9 7, 3 1 7	7 5 4, 9 0 0
ir v lue d j f b io log ica l a Fa tm ts ts a a us en o sse	6 5, 5 3 6	-3 4, 7 7 7	4 7, 6 6 5	-1 4 1, 9 0 8
On tra ts ero us co n c	0	6, 1 0 9	0	6, 1 0 9
fro ia Inc tes om e m as so c	4, 4 0 8	1, 6 9 5	-2, 5 3 9	-7 2 4
Re tax ve nu e	3 2, 0 3 1	3 1, 4 1 1	6 4, 0 2 5	5 7, 7 3 8
ion Op t l E B I T era a	3 3 8, 7 6 4	4 0 7, 8 9 3	6 0 6, 4 6 8	6 7 6, 1 1 5

Operational EBIT per kg

i F t: a r m n g s e g m e n	୓୮ ୧୭୬ ୪ ୉ ୆ ୍ ୘ ୊ୟ ୧୬ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୱୣ ୥ ୫ ୣ୬
	୪ ୦ୟ ୢ ୴ ୪୳ ሺ ሻ ୘୭ ୲ୟ ୲ୣ ୰୴ ୣୱ ୭ ୫ ୣୱ ୥ ୵
t: V A P s e g m e n	୪ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୣ୥ ୫ ୣ୬
	୪ ୴ ୪୳ ୢ୳ ୢ ሺ ୧ୟ ୪ ୥ ሻ ୘୭ ୲ୟ ୲ୣ ୭ ୫ ୣୱ ୮ ୰୭ ୡୣ ୰ୟ ୵ ୫ୟ ୰ ୵
i d F V A P: a r m n g a n	୪ ୢ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୊ୟ ୧୬ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୟ୬ ୣ୥ ୫ ୣ୬
	୪ ୦ୟ ୢ ୴ ୪୳ ୘୭ ሺ ሻ ୲ୟ ୲ୣ ୰୴ ୣୱ ୭ ୫ ୣୱ ୥ ୵

EBITDA

Earnings before interest, tax, depreciations and amortizations (EBITDA) is a key financial parameter for Bakkafrost's FOF segment. EBITDA before other income and other expenses is defined as EBITDA less gains and losses on disposals of fixed assets and operations and is reconciled in the section Group overview. This measure is useful to users of Bakkafrost's financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciations and amortization expenses related primarily to capital expenditures and acquisitions, which occurred in the past, nonrecurring items, as well as evaluating operating performance in relation to Bakkafrost's FOF segments competitors. The EBITDA margin presented is defined as EBITDA before other income and other expenses divided by total revenues.

Adjusted EPS

Adjusted EPS is based on the reversal of certain fair value adjustments shown in the table below, as it is Bakkafrost's view that this figure provides a more reliable measure of the underlying performance.

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18
fit for th th Pro to e y ear e
sha reh old of P/ akk afr F B ost ers	18 8, 60 2	33 8, 75 6	40 1, 43 8	61 1, 05 7
Fai alu dju of bi stm ent r v e a om ass	65 53 6 ,	-34 77 7 ,	47 66 5 ,	-14 1, 90 8
isio On tra cts ero us con pr ov ns	0	6, 10 9	0	6, 10 9
fa ir v alu dju Tax stm ent on e a
and isio tra cts on ero us con pr ov ns	-11 79 6 ,	5, 16 0	-8, 58 0	24 44 4 ,
jus ofi t fo Ad ted r th to pr e y ear of f B kaf sha reh old ak t	24 34 2	31 24 8	44 52 3	49 70 2
P/ ers ros	2,	5,	0,	9,
Tim eig f hte d a be e-w ve rag e n um r o
ing sha tst and th h t he res ou rou g ye ar	48 66 9, 66 8 ,	48 63 7, 70 7 ,	48 66 9, 66 8 ,	48 63 7, 70 7 ,
Ad jus ted rni ha ea ngs pe r s re ( bef fa ir v alu dju f b iom d stm t o ore e a en ass an
vis ion s fo ) (a dju d E PS) tra cts ste pro r o ne rou s c on	4.9 8	6.4 8	9.0 5	10 .27

ROCE

Return on average capital employed (ROCE) is defined as the period's operational EBIT divided by the average capital employed, which is total assets adjusted for total current liabilities. The performance measure is expressed as a percentage and is useful for evaluating Bakkafrost's profitability.

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 19	20 18	20 19	20 18
tio l E Gro -Op BIT up era na	33 8, 76 4	40 7, 89 3	60 6, 46 8	67 6, 11 5
ita l em loy ed Av era ge cap p	5, 60 9, 18 5	5, 13 3, 53 8	5, 00 1, 24 9	4, 82 2, 53 1
RO CE	6.0 %	7.9 %	12 .1%	.0% 14

Contacts

P/F BAKKAFROST Bakkavegur 9 FO-625 Glyvrar Faroe Islands Telephone: +298 40 50 00 Fax: +298 40 50 09 Email: bakkafrost@bakkafrost.com Website: www.bakkafrost.com