Austevoll Seafood ASA

Quarterly Report • Feb 26, 2019

Q4 2018 Financial presentation

CEO - Arne Møgster CFO - Britt Kathrine Drivenes

Highlights

All figures in MNOK	Q4 2018	Q4 2017	2018	2017
Revenue	5 765	4 802	22 837	20 799
EBITDA*	1 216	819	5 239	4 747
EBIT*	955	584	4 279	3 827
Pre-tax profit**	968	651	4 397	4 029
EPS (NOK)*	2,49 -	1,62	9,79	8,62
Total assets			37 955	35 309
Net interesting bearing debt			3 983	4 138
Equity ratio			59%	54%
Group EBITDA incl. 50% of Pelagia	1 322	934	5 561	5 054
EBITDA Salmon/whitefish	1 134	921	4 228	4 300
EBITDA Pelagic incl. proportional Pelagia	189	13	1 333	754

The Board will recommend to the annual general meeting in 2019 a dividend of NOK 3.50 per share (NOK 2.80 per share in 2018)

* Before fair value adjustments related to biological assets

** In pre-tax profit the effect from fair value adjustments related to biological assets is excluded. This effect is also excluded for biological assets in associated company.

Operation overview

	PERU	CHILE	NORTH ATLANTIC	AUSTEVOLL SEAFOOD GROUP
PELAGIC FISHING	7% of anchovy quota centre-north 20 fishing vessels	8.4% of pelagic fishing quota 3 fishing vessels	3 fishing vessels	400,000 - 500,000 MT of pelagic fish caught annually (26 vessels)
PELAGIC PROCESSING	7 processing plants	4 processing plants	27 processing plants*	38 processing plants Intake of 1.6 – 2.0 mill MT of fish annually
WHITE FISH			11% whitefish quota (NO) • 9 fishing vessels • 8 Processing plants	100,000-120,000 MT of whitefish (9 vessels) 8 processing plants
SALMON			Norway: Salmon licenses • incl. salmon operation UK*	190,000 - 200,000 MT of salmon
SALES	Integrated sales organisation	Integrated sales organisation	Integrated sales organisation	Wholesale with global sales & distribution

* Associated companies

3

Pelagic

Austral Group S.A.A Foodcorp Chile S.A Br. Birkeland AS Pelagia AS (associated)

Coastal El Niño Index (CENI)

Condition	Category	$\Delta T^{\circ}$ Max	$\Delta T^{\circ}$ Min
	Strong		< 1.4
La Niña	Moderate	$\geq 1.4$	312
	Weak	$\geq -1.2$	< 10
	Neutral	$\geq 1.0$	$\leq 0.4$
	Weak	>0.4	≤1.0
El Niño	Moderate	>1.0	$\leq 1.7$
	Strong	>1.7	≤ $3.0$
	Very Strong	>3.0

Source: Enfen

• Weak Coastal El Niño projected
• Imarpe cruise planned to finish by 28th March
• Earliest season start in April with final date subject to cruise findings
• Peruvian quota for 2019 is estimated between 4.5 5.0 million MT (subject to IMPARPE`s cruises)

Austral Group S.A.A Operation in Peru

Fishmeal/fish oil

Centre/North

• 2nd season quota 2.1m MT (2017 1.49m MT) 100% caught (46% 2017)
• Share of unload 8.8% vs. 8.0% 2nd season 2017 benefitting from distribution of biomass
• Fishmeal and Oil yields 23.4% & 4.1% (2017 22.8% and 3.9%)
• % Prime/Super Prime quality 84% (2017 62%)
• Highest catch and unload volume since 2011

Direct Human Consumption

• Good start to DHC in Q1 2019 10,000 MT YTD, compared to zero catch at same date in 2018

Volume '000 MT	Q4 2018	Q4 2017	2018	2017	2019E
Own catch
Anchoveta	127	0	403	209	359
Mackerel	4	0	11	8	15
Purchase
Anchoveta	49	0	187	75	179
Mackerel	0	0	0	1	0
Total ('000 MT)	181	1	602	293	553

Operation in Chile Foodcorp Chile S.A

Own catches:

• Remaining volume of 5,000 MT caught in December
• Jack mackerel volume up 23% from 2017
• o Total catch of horse mackerel in 2018 of 53,000 MT vs. 2017 43,000 MT
• o Includes own quota and purchased from high seas SPRFMO quota holders

Purchases:

• Giant squid: not available (off-season) during Q4

Jack mackerel quota 2019

• 2.6% increase of TAC vs. 2018

Purchase of an additional second-hand fishing vessel in Q4/18

• The new vessel is expected to start operating in Chile in Q2/19

Volume '000 M T	Q4 2018	Q4 2017	2018	2017	2019E
Own catch:
Mackerel and other species	5	3	57	44	55
Purchase:
Sardine/anchovy	3	4	26	43	27
Giant squid/mackerel	0	1	12	15	11
Total ('000 MT)	8	8	95	102	93

Focus remains in securing raw material from third parties

North Atlantic pelagic quotas (2009-2019E)

Key drivers for 2019 E

• Increased quota for: o NVG herring
• Decrease in quota for
• o Capelin (Barents Sea = 0)
• o Mackerel
• o North Sea herring
• o Bluewhiting

Source: Norges Sildesalgslag, Havforskningsinstituttet.

Estimates is based on data from the above

* Horse Mackerel, Sand Eel, Norway Pout, Boar ** Capelin from both the Barents Sea and Iceland sources and ICES recommendation

Fishmeal and fish oil (FMO) Pelagia AS

• Lower raw material intake in Q4 2018 vs. Q4 2017
• Q4 production mainly based on trimmings from herring and mackerel
• Volume of sales 25 % higher in Q4 2018, compared to Q4 2017
• Further recovery on prices seen in Q4 2018 for fishmeal
• ICES quota recommendations reduced in 2019 vs. 2018 quotas
• o Lower raw material volume expected in 2019

N o rway, UK and Ireland ('000 M T)	Q4 2018	Q4 2017	2018	2017	2019E
Raw Material:
Fishmeal and fish oil	107	115	674	675	545
Protein concentrate/oil	58	78	247	284	260
Total ('000 MT)	165	193	921	959	805
A ll vo lum e based o n 100%

Direct Human Consumption Pelagia AS Volume ('000 MT) Q4 2018 Q4 2017 ^{2018 2017} 2019E

• Good raw material intake for the quarter
• o Slow start on mackerel catching, but better production in Q4 vs. expectation
• Strong sales for the quarter with 42% share of export from Norway
• o Good sales of mackerel even with all time high raw material cost
• Stock situation on the high side
• MSC suspension on Atlantic mackerel
• Good production so far in 2019

Raw material intake	189	206	416	430	355

Pelagia AS (100% figures)

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue	2 386	2 207	6 369	6 122
EBITDA	214	231	645	614
EBIT ex. Impairment	157	183	436	436
EBIT	163	221	443	485
Sales volumes (tonnes):
Frozen	110 300	167 900	284 700	321 100
FM/FPC/Oil	48 200	38 800	177 700	188 200

Br. Birkeland (Salmon/Fishing)

Salmon	Q4 2018	Q4 2017	2018	2017	2019E
Harvest volume (GWT)	1,644	1,198	5,727	6,543	8,000
EBIT (NOK/kg)	5.9	9.4	12.3	23.3

Salmon:

• Harvesting volumes up 37% in Q4 2018 vs. Q4 2017

Fishing:

• Seasonal good activity for the pelagic vessels
• Total loss of the vessel "Northguider"
• The crew safely rescued without any major injuries
• Snow crab fishery closed between June 15th September 15th due to molting season
• Slow start in Q4

Salmon/White Fish

Lerøy Seafood Group ASA

Lerøy Seafood Group ASA

Q4 2018

• EBIT before FV adj. NOK 948 million (Q4/17: NOK 777 million)
• o Havfisk & LNWS EBIT NOK 54 million (Q4/17: NOK 79 million)
• Harvest volume salmon and trout 49,414 GWT (Q4/17: 42,280 GWT)
• EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) of NOK 18.1 (Q4/17: NOK 16.5)
• Contract share of 23% (Q4/17: 30%)
• NIBD NOK 2,546 million at end of Q4/18 (Q4/17: NOK 2,262)

Lerøy Seafood Group ASA

Salmon/Trout farming

	2013 GWT	2014 GWT	2015 GWT	2016 GWT	2017 GWT	2018E GWT	2019E GWT
Lerøy Aurora AS*	24 200	26 800	29 200	30 000	39 200	36 800	37 000
Lerøy Midt AS	58 900	68 300	71 400	52 200	64 500	66 500	71 000
Lerøy Sjøtroll	61 700	63 200	57 100	68 000	54 000	58 800	66 000
Total Norway	144 800	158 300	157 700	150 200	157 800	162 000	174 000
Villa Organic AS**		6 000
Norskott Havbruk (UK)***	13 400	13 800	13 500	14 000	15 500	13 700	15 000
Total	158 200	178 100	171 200	164 200	173 300	175 800	189 000

*) Included harvested volume from Villa Organic after split July 2014

**) LSG's share of Villa Organic's volume in H1 2014, not consolidated

***) LSG's share, not consolidated

Lerøy Seafood Group ASA - Wild catch

Havfisk, catch volume	Q4 2018	Q4 2017	2018	2017
Cod	6 534	8 511	24 339	29 665
Haddock	961	1 264	8 956	13 158
Saithe	2 567	1 545	15 559	14 407
Shrimps	152		7 459	1 161
Other	1 301	1 024	9 943	8 337
Total	11 515	12 345	66 255	66 729

Havfisk, prices	Q4 2018	Q4 2017	2018	2017
Cod	32.7	27.3	31.2	26.7
Haddock	25.8	22.1	23.7	18.9
Saithe	13.5	12.3	11.5	11.6

Q4 2018: Wild catch

• Lower quotas on cod and haddock, and positive development in demand gives lift in prices for cod and haddock
• o Average prices up 11% y-o-y. Y-o-y prices for cod up 20%, haddock 17%, and saithe 10%
• o Investment in fleet gives capacity for more shrimp catches
• Development of the white fish processing industry in Norway is challenging
• o Several initiatives are initiated. Higher efficiency in operations, and broader market reach are needed
• The Group is expecting stability in framework conditions to make necessary steps possible for a turn-around of the industry in Norway
• Expected catch volume around 65,000 MT in 2019

Financials Q4 2018

Catch, purchase and farming (100% volumes)

Figures in 1,000 tonnes	Q4 2018	Q4 2017	2018	2017	2019 E
Group companies:
Norway (whitefish)	12	12	66	67	65
Norway (pelagic)	8	12	41	40	30
Chile own catch	5	4	57	44	55
Chile purchase	3	6	38	58	38
Peru own catch	131	0	415	218	374
Peru purchase	49	0	188	75	179
Total Group companies	208	35	805	502	741
Joint ventures:
Europe purchase (HC)	189	206	416	430	355
Europe purchase (FM/FPC/Oil)	165	194	921	960	805
Totalt Joint venture:	354	400	1 337	1 390	1 160
TOTAL WILDCATCH	562	435	2 142	1 892	1 901
Salmon/Trout (GWT)*	54	47	182	180	197
TOTAL GROUP	616	482	2 323	2 072	2 098

* Incl. 50% of the Scottish Sea Farms volumes

Key financial figures

(NOK 1,000)	Q4 2018	Q4 2017	Δ%	Q4 2018 a)	Q4 2017 a)	Δ%
Revenue	5 765 343	4 802 013	20,1 %	6 958 390	5 905 672	17,8 %
EBITDA*	1 215 632	818 675	48,5 %	1 322 412	934 372	41,5 %
Depreciation/impairment	260 509	234 411		285 656	239 652
EBIT*	955 123	584 264	63,5 %	1 036 756	694 720	49,2 %
Income from associates*	131 048	153 076
Net finance	-118 244	-86 716
Pre-tax**	967 927	650 624	48,8 %
Net profit	356 126	-181 072
EPS (NOK)	1,06	-0,39
EPS (NOK)*	2,49	1,62

* before fair value adjustments related to biological assets

** In pre-tax profit is the effect from fair value adjustments related to biological assets excluded, also for biological assets in assosiated company.

a) AUSS incl. proportional 50% of Pelagia AS

	Q4 2018	Q4 2017
Biomass adj group company	-741 032	-1 001 927
Biomass adj group associated companies	20 090	-9 980

	Q4 2018	Q4 2017
Depreciation	266 020	231 220
Impairment	(5 511)	3 191
Total	260 509	234 422

Key financial figures

2018	2017 (audited)	Δ%	2018 a)	2017 (audited) a)	Δ%
22 837 084	20 798 933	9,8 %		23 859 988	9,1 %
5 238 612	4 747 249	10,4 %		5 054 214	10,0 %
960 074	920 094			984 649
4 278 538	3 827 155	11,8 %		4 069 565	10,6 %
474 978	495 374
-356 517	-293 431
4 396 999	4 029 098	9,1 %
4 230 832	1 830 956
11,39	5,00
9,79	8,62
				26 021 565 5 561 213 1 061 241 4 499 972

2018 a)	$2017$ (audited) a)	Δ%
26 021 565	23 859 988	9,1%
5 5 6 1 2 1 3	5 0 54 214	10.0%
1 061 241	984 649
4 499 972	4 069 565	10,6%

* before fair value adjustments related to biological assets

** In pre-tax profit is the effect from fair value adjustments related to biological assets excluded, also for biological assets in assosiated company.

a) AUSS incl. proportional 50% of Pelagia AS

	2018	2017 (audited)		2018	2017
Biomass adj group company	798 388	-1 832 499	Depreciation Impairment	967 118 (7 044)	919 429 665
Biomass adj group associated companies	-2 959	3 415	Total	960 074	920 094

Lerøy Seafood Group ASA

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue	5 347	4 554	19 880	18 620
EBITDA*	1 134	921	4 228	4 300
EBIT*	948	777	3 569	3 717
Harvested volume (GWT)	49 414	42 280	162 039	157 768
EBIT/kg* ex. Havfisk (NOK)	18,1	16,5	19,6	21,1
Havfisk catch volume (MT)	11 515	12 345	66 255	66 729
EBIT Havfisk (MNOK)	54	79	388	386

* before fair value adjusments related to biological assets

• Price achievement

• o Spot prices above last year (+ 12%)
• ✓ NSI Q4/18 NOK 55.4 vs. NOK 49.3 in Q4/17
• ✓ Up NOK 1/kg q-o-q and up NOK 6/kg y-o-y
• o Trout price achievement well below salmon prices
• o Contract prices above spot prices
• ✓ Contract share of 23%
• Cost (RFS) down q-o-q and y-o-y
• Biomass at sea
• o End Q4/18 at 110,105 LWT vs. 112,489 LWT end Q4/17 (-2%)
• Wild catch
• o Change in mix vs. Q4/17, less cod and haddock and more saithe and shrimps
• o Increase in achieved prices for cod, haddock and saithe by 20%,17% and 10% vs. Q4/17. Increase in saithe prices are related to sizes.

NIBD Q4/18 MNOK 2,546 vs. Q4/17 MNOK 2,262

** EBIT* divided by harvest volume salmon and trout

Austral Group S.A.A

(MNOK)	Q4 2018	Q4 2017	2018	2017	• Raw material intake
Revenue	164	16	1 640	1 250	season started November 15th nd 2 o
EBITDA EBIT	77 32	-122 -173	619 453	137 -51	Good activity in the quarter, and 87% of the quota o for 2nd season caught by end December
Rawmaterial (MT):	180 637	722	602 703	293 960
Sales volumes: Fishmeal (MT)	6 602	92	93 636	83 507	• Sales
Fish oil (MT)	1 113	421	16 933	11 431	Low sales volumes in the quarter o
Frozen/fresh (MT)	5 321	18	11 808	8 154	Low inventory volumes going to Q4 ➢
					Low sales from the new production in Q4 ➢
	EBITDA, EBIT, Salesvolumes				Higher prices vs. same quarter in 2017 o
400 300 200 MNOK 100	43	42	45 40 35 30 25 MT ,000		• Inventory by end December 2018 Fishmeal 37,500 MT (Dec. 2017: 150 MT) o
- -100	18	8	20 15 10 5		Fish oil 5,300 MT (Dec. 2017: 10 MT) o
1 -200 Q4 2017 Q1 2018	Q2 2018 Q3 2018	Q4 2018	-		NIBD Q4/18 MNOK 727 vs. Q4/17 MNOK 805

• Raw material intake
• o 2 nd season started November 15th
• o Good activity in the quarter, and 87% of the quota for 2nd season caught by end December
• Sales
• o Low sales volumes in the quarter
  • ➢ Low inventory volumes going to Q4
  • ➢ Low sales from the new production in Q4
• o Higher prices vs. same quarter in 2017
• Inventory by end December 2018
• o Fishmeal 37,500 MT (Dec. 2017: 150 MT)
• o Fish oil 5,300 MT (Dec. 2017: 10 MT)

Foodcorp Chile S.A

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue	73	102	603	508
EBITDA	-31	-30	90	79
EBIT	-20	-35	80	46
Rawmaterial intake:	8 250	10 632	94 971	102 441
Sales volumes:
Fishmeal (MT)	2 422	4 228	10 168	13 135
Fish oil (MT)	128	279	3 696	4 577
Frozen (MT)	3 541	3 840	40 277	27 661

• Raw material intake
• o Seasonal low activity
• o 90% of the horse mackerel quota is caught within end Q3
• o Remaining volume caught in December, total 5,000 MT

• Sales

• o Sales volume Q4/18 in line with Q4/17
• o Higher prices vs. same quarter in 2017
• Inventory by end December 2018
• o Frozen 4,600 MT (Dec. 2017: 6,300 MT)

NIBD Q4/18 MNOK 11 vs. Q4/17 MNOK 20

Br. Birkeland Farming AS (AUSS owns 55.2%)

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue EBITDA*	87 15	61 17	320 91	408 173
EBIT*	10	11	70	153
Harvested volume (GWT)	1 644	1 198	5 727	6 543
EBIT/kg* (NOK)	5,9	9,4	12,3	23,3

* before fair value adjusments related to biological assets

• Price achievement
• o Spot prices above last year (+ 12%)
• Cost (RFS)
• o Up y-o-y
• o Weak profitability on back- of final harvesting of the V17G, which was high cost
• Biomass at sea
• o End Q4/18 at 5,828 LWT vs. 5,070 LWT end Q4/17 (+15%)

NIBD Q4/18 MNOK 82 vs. Q4/17 MNOK 31

Br. Birkeland (AUSS owns 42.9%)

(MNOK)	Q4 2018	Q4 2017	* 2018	2017
Revenue	73	85	407	248
EBITDA	15	34	213	46
EBIT	-17	10	129	-29
* Gain from sale of Maron AS			157
Adjusted EBITDA			56
Adjusted EBIT			-28

Pelagic

• Seasonal high activity
• o Finalizing the mackerel and herring quotas
  • ➢ Higher prices for mackerel vs. 2017

Snowcrab

• Total loss of the vessel "Northguider"
• o Net effect impairment/insurance in Q4/18 MNOK -14.4
• Snow crab fishery closed between June 15th and September 15th due to molting season
• Fishing started up in Q4
• o Still challenging conditions for the snow crab vessel

NIBD Q4/18 MNOK -89 (cash positive) vs. Q4/17 MNOK 294

* Q1 2018 adjusted EBITDA and EBIT (ex. Gain from sale of Maron AS)

Statement of financial position (Group)

(NOK 1,000)	31-Dec-18	31-Dec-17
Intangible assets	11 491 957	11 697 603
Tangible fixed assets	8 851 442	7 563 091
Financial non-current assets	2 392 894	2 305 574
Total non-current assets	22 736 293	21 566 268
Biological assets at cost	4 234 125	3 897 815
Fair value adjustment of biomass	1 634 911	791 478
Other inventory	1 896 897	1 188 479
Receivables	3 059 746	2 790 309
Cash and cash equivalents	4 392 863	5 074 875
Total current assets	15 218 542	13 742 956
Total assets	37 954 835	35 309 224
NIBD	3 982 594	4 137 532
Equity	22 454 007	19 171 739
Equity ratio	59 %	54 %

USD/NOK:

• 31.12.2018: 8.69

• 31.12.2017: 8.20

Strong financial position, equity ratio at 59%

Pelagia AS is an associated company which is included in the line Financial non-current assets of the Group balance sheet

o As such the Group balance sheet does not include proportional consolidation of Pelagia (50%)

Cash flow

(NOK 1,000)	Q4 2018	Q4 2017	2018	2017 (audited)
Pre tax profit	246 984	-361 284	5 192 428	2 200 015
Biomass adjustment	741 032	1 001 927	-798 388	1 832 499
Paid tax	-43 010	-19 161	-948 184	-599 617
Depreciaton and impairments	260 509	234 411	960 074	920 094
Associated companies	-151 138	-143 095	-472 019	-498 790
Interest (net)	56 108	67 028	276 901	282 873
Working capital	19 177		193 682 -1 049 005	83 417
Cash from operating activities	1 129 662	973 508	3 161 807	4 220 491
Net investment in capex	-677 094		-649 869 -2 533 241 -1 840 471
Acquisitions and divestments	46 631	54 223	422 526	51 926
Dividend received	3 000	27 500	395 200	264 015
Others	19 400	-15 770	109 838	-31 527
Cash from investing activities	-608 063		-583 916 -1 605 677 -1 556 057
Change in long term loans	-468 242	-136 550	-888 472	338 884
Change in short term loans	-115 880	301 409	-5 374	-326 873
Dividends	-	-	-1 081 324	-950 584
Others	-21 880	-84 376	-277 678	-387 458
Cash from financing activities	-606 002		80 483 -2 252 848 -1 326 031
Cash at the beginning of the period	4 461 674	4 599 901	5 074 875	3 745 198
Net change in cash (incl.exchange gain/losses)	-68 811	474 974	-682 012	1 329 677
Cash at the end of the period	4 392 863	5 074 875	4 392 863	5 074 875

2018

Good cash performance, however;

• Substantially higher working capital end 2018 vs. 2017
• Investment program in core business
• Down payment of AUSS bond of MNOK 500 in October

The Board will recommend to the annual general meeting in 2019 a dividend of NOK 3.50 per share (NOK 2.80 per share in 2018)

Outlook

Fishmeal

Fish meal production 2018 vs. 2017

Regions	2018	2017	Change %
Chile*	1 816 504	1 662 193	9,3 %
Peru	6 040 445	3 142 180	92,2 %
Danmark/Norway*	1 326 250	1 376 352	-3,6 %
Iceland/North Atlantic*	1 190 996	1 146 469	3,9 %
Total	10 374 195	7 327 194	41,6 %
source: IFFO All numbers are preliminary and subject to revision # Includes salmon- derived oil *Includes

U.K., Ireland and Faroe Islands

• Production IFFO Fishmeal production increased 41% YTD vs. 2017
• Peru landed over 70% of the quota Nov/Dec 2018 leaving a small portion of the quota which was reached during Jan 2019
• Production outlook for 2019 expected to be in line with 2018 level
• USD 1,490/MT for Super Prime
  • USD 1,290/MT for Standard 65/180
• Demand Feed mills producers & end users building stocks in order to secure their consumption during the aqua peak season (Q2 - Q3, 2019)
• Supply Limited stock available from second season 2018 in Peru

Prices (FOB Peru)

Fishmeal

Main market – China

• Stock level: 169,010 MT as of Feb 18th vs. 83,000 MT same period 2018 (+104% vs. 2018)
• o Off takes Jan: 2,300 MT/day
• o Off takes Feb: 1,022 MT/day, low for the time being caused by the Chinese new year
• Chinese prices equal/slightly higher than in Peru (stock last fishing season 2018-2)
• o Quoted at RMB 10,600 -10,800/MT equivalent super prime 68% USD 1,510 - USD 1,540/MT FOB Peru
• Supply and demand is in balance, expecting further news about the next fishing season in Peru

Fish oil

Regions	2018	2017	Change %
Chile*	131 678	116 215	13,3 %
Peru	226 441	102 091	121,8 %
Danmark/Norway*	75 538	63 935	18,1 %
Iceland/North Atlantic*	59 091	64 535	-8,4 %
Total	492 748	346 776	42,1 %
source: IFFO All numbers are preliminary and subject to revision # Includes salmon- derived oil *Includes

U.K., Ireland and Faroe Islands

Fish oil production - 2018 vs. 2017

Prices (FOB Peru)

• Production IFFO Fish oil production increased 42% YTD vs. same period 2017
• Peru is up 122% vs. 2017 due to recovery in production and good yields
• Feed grade: USD 1,600 1,700/MT
  • Omega-3 grade: USD 2,000 2,200/MT
• Demand Feed market balanced market with buyers well covered up to May 2019
• Omega-3 market balanced after restocking
• Supply Stocks available in Peru, mainly for feed grade

Atlantic salmon supply

(in tonnes WFE )

		Change		Change		Change		Change		Change		Change
	2014	$13 - 14$	2015	$14 - 15$	2016	$15 - 16$	2017	16-17	2018	$17 - 18$	2019	18-19
Norway	199 000	4,8%	234 200	2.9%	171 100	$-5.1%$	207 800	3.1%	253 400	3.8%	326 900	5,9%
United Kingdom	170 500	8.0%	166 300	$-2.5%$	157 400	$-5.4%$	177 200	12.6 %	153 600	$-13.3%$	179 200	16.7%
Faroe Islands	82 700	13.9%	75 600	$-8,6%$	77 300	2.2%	80 300	3.9%	71 700	$-10.7%$	74 800	4.3 %
Ireland	12 300	16.0%	15 700	27.6%	15 800	0.6%	17 000	7.6 %	14 300	$-15.9%$	17 000	18,9%
Iceland	4 400	31.3%	3 600	$-18.2%$	8 100	125,0 %	11 500	42.0 %	13 600	18,3%	18 500	36.0%
Total Europe	468 900	5,8%	495 400	1,8%	429 700	$-4.4%$	493 800	4,5 %	506 600	0.9%	616 400	7,3 %
Chile	582 900	24,5%	598 200	2.6%	504 400	$-15.7%$	564 200	11.9 %	677 400	20.1%	688 900	1,7%
Canada	95 000	$-17.5%$	135 200	42.3%	146 000	8.0%	139 000	$-4.8%$	144 900	4.2%	147 000	1,4%
USA	24 000	18,2%	20 200	$-15.8%$	22 500	11,4%	21 700	$-3.6%$	19 000	$-12.4%$	17 200	$-9.5%$
Australia	42 000	7.7%	54 400	29.5 %	50 900	$-6.4%$	61 200	20.2 %	61 300	0.2%	61 800	0,8%
Others	16 700	49,1%	15 800	$-5.4%$	8 4 0 0	$-46.8%$	14 200	69,0 %	9 2 0 0	$-35.2%$	22 300	142,4 %
Total Others	760 600	16.4 %	823 800	8.3%	732 200	$-11.1%$	800 300	9.3%	911 800	13.9%	937 200	2,8%
Total World-wide	2 2 2 5 0 0	9.2%	2 3 1 9 2 0 0	4.0%	2 161 900	$-6.8%$	2 294 100	6.1 $\%$	2 418 400	5.4%	2 553 600	5,6 %

Figures as per 21.02.2019 - Source: Kontali

SPOT prices

fresh Atlantic salmon, cross-section, FCA Oslo as of week 7-2019 (Superior quality)

	Quarter 2008 2009		2010								2011 2012 2013 2014 2015 2016 2017 2018 2019
Q1	- 26	29	34		40 27	36 —	47	41	58	65	60	58
Q 2	$\sim$ 26	36	41	38	28 —	42	40	38	64	67	68
$\Omega$	-28	32	39	27	26 —	38	35	-41	60 —	56 —	55
Q4	26	-28	38	23	27	42	39	44	66 —	49	55
Totalt	27	31	38	32	27	41	40	41	62	59	59	58

Atlantic salmon consumption FY 2018

Market - Salmon	2016	2017	2018	Grow th	Grow th %
Eu	1 050 100	1 023 500	1 062 100	38 600	4 %
Other Markets	609 000	657 200	711 600	54 400	8 %
USA	419 600	441 900	475 300	33 400	8 %
Japan	65 000	64 100	60 100	-4 000	-6 %
Russia	74 700	77 600	96 900	19 300	25 %
Total Consumption	2 218 400	2 264 300	2 406 000	141 700	6 %

Figures as per 21.02.2019 Kontali

Conclusion

Salmon

• Strong salmon prices in Q4/18
• Cost (RFS) down from q-o-q and y-o-y
• Demand for seafood remains strong, outlook remains positive
• Volume guiding 2019 190,000 GWT vs. harvest of 182,000 GWT in 2018

White fish

• Significant potential in whitefish,
• 2019 quota set for cod down 6.5% and haddock down 15% but robust quota situation for whitefish also in 2019
• Expect initiatives for improvement of the land industry gradually to show effects in 2019

Conclusion

Pelagic

South America

• Seasonal high activity
• Recovery of the anchoveta biomass in Peru
• Recovery of the Jack mackerel biomass in Chile
• o Recommendation 3% increase in TAC for 2019

North Atlantic (Pelagia AS, an associated company)

• Seasonal high activity
• Mackerel season started late September
• ICES quota recommendations reduced in 2019 vs. 2018 quotas

Disclaimer

• This Presentation has been produced by Austevoll Seafood ASA (the "Company" or "Austevoll") solely for use at the presentation to the market held in connection with the announcement of fourth quarter results for 2018.
• This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither The Company or any of their respective group of companies or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.
• An investment in the company involves risk, and several factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and

regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors.

• Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation. the company does not intend, and does not assume any obligation, to update or correct the information included in this presentation.
• No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their group companies or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
• By attending the quarterly presentation or upon reading the Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.
• This Presentation is dated 26.02.2019. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

Appendix

Associated companies

Pelagia AS (100% figures) AUSS`s share = 50%

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue	2 386	2 207	6 369	6 122
EBITDA	214	231	645	614
EBIT ex. Impairment	157	183	436	436
EBIT	163	221	443	485
Net interest bearing debt	2 525	2 100

Associated companies

Norskott Havbruk AS (100% figures) LSG's share = 50%

(MNOK)	Q4 2018	Q4 2017	2018	2017
Revenue	512	485	2 057	2 088
EBITDA	177	136	730	752
EBIT*	158	115	661	669
Volumes (gwt)	6 651	7 212	27 464	30 996
EBIT/kg* (NOK)	23,7	16,0	24,1	21,6
Net interest bearing debt			508	181

* Before biomass adj.