Bakkafrost P/f

Annual Report • Feb 19, 2019

INTERIM REPORT

Q4 2018

www.bakkafrost.com

Table of Contents

ig h l ig h H ts	2
th Su f he Q 0 t 4 te 2 1 8 mm ar o ua r r y
d hs f 1 2 Mo t 2 0 1 8 . an n o	3

ina ia l iew F Re nc v	4
S Inc ta te t om e me n	4
f ina ia i ion S ta te t o F l Po t me n nc s	4
h low Ca F s	5
ing Se Fa t rm g me n	6
V A P Se t g me n	7
F O F Se t g me n	8

S ta te t by t he t a d t he Ma me n na g em en n
d o f ire he im Bo D to t In te Re t 1 2 ar c rs on r p or

l i da d Co te Inc S ta te t 1 3 ns o om e me n
Co l i da d S f te ta te t o ns o me n
he ive Co Inc 1 3 mp re ns om e
l i da d f Co te S ta te t o ns o me n
ina ia l i ion F Po t 1 4 nc s
l i da d h low Co te Ca F S ta te t 1 5 ns o s me n
l i da d f Co te S ta te t o ns o me n
C ha in i 6 Eq ty 1 ng es u

loo k Ou t 9	he No te to t Ac t 1 7 s co un
is ks R 1 1
f he f he Ev ts te t Da te t en a r o
f ina ia l i ion S ta te t o F Po t 1 1 me n nc s	Co ta ts 2 7 n c

Highlights

	Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 18	20 17	20 18	20 17
INC OM E S TA TE ME NT
ing Gro - O rat up pe re ve nue	75 0, 34 8	90 6, 07 0	3, 17 7, 42 2	3, 77 0, 04 9
ion al IT* Gro - O rat EB up pe	23 0, 50 9	33 1, 24 0	1, 07 4, 91 2	1, 37 7, 64 7
Gro - E BIT up	-4, 89 5	-29 34 4 ,	1, 18 4, 23 3	64 9, 10 4
Gro rof it f the rio d - P up or pe	-6, 62 0	-21 90 9 ,	96 0, 29 2	40 2 51 1,
tio l E * ( mi and P) ( K) Op BIT Far VA DK era na ng	20 7, 73 0	26 5, 36 8	94 3, 23 5	1, 23 2, 75 3
Op tio l E BIT / kg ( Far mi and VA P) ( DK K) era na ng	16 .98	23 .14	21 .15	22 .57
Op tio l E / kg ( mi and P) ( NO K) BIT Far VA era na ng	21 .91	29 .88	27 .24	28 .29
mi ati Far - O ng per ng rev en ue	68 1, 85 1	57 7, 28 3	2, 56 8, 36 6	2, 98 6, 56 1
Far mi - O ati al EB IT* ng per on	20 4, 40 0	22 8, 82 1	96 5, 65 9	1, 30 8, 19 4
mi - O ati al in Far EB IT m ng per on arg	30 .0%	39 .6%	37 .6%	43 .8%
mi ati al IT/ kg ( K) Far - O EB DK ng per on	16 .71	19 .95	21 .66	23 .95
mi ati al IT/ kg ( K) Far - O EB NO ng per on	21 .56	25 .76	27 .89	30 .02
tin VA P - Op era g r ev en ue	10 8, 99 0	28 8, 42 3	36 4, 82 7	99 8, 77 8
tio l E * VA P - Op BIT era na	3, 33 0	36 54 7 ,	-22 42 4 ,	-75 44 1 ,
tio l E in VA P - Op BIT era na m arg	3.1 %	12 .7%	-6. 1%	-7. 6%
VA P - Op tio l E BIT / kg ( DK K) era na	1.1 7	7.3 8	-2. 68	-3. 96
Op tio l E / kg ( NO K) VA P - BIT era na	1.5 1	9.5 4	-3. 46	-4. 96
tin FO F - Op era g r ev en ue	28 7, 68 9	36 6, 85 7	1, 26 8, 56 4	1, 30 3, 16 1
FO F - EB ITD A	60 40 7 ,	93 62 6 ,	25 4, 28 1	26 6, 09 3
FO in F - EB ITD A m arg	21 .0%	25 .5%	20 .0%	20 .4%
K/ K ( e) DK NO ave rag	77 .50	77 .44	77 .66	79 .80

	Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 18	20 17	20 18	20 17
CIA OS ON D C AS LO FIN AN L P ITI AN H F W
tal s*** To As set	5, 80 2, 52 3	5, 15 5, 51 6	5, 80 2, 52 3	5, 15 5, 51 6
uit *** Eq y	4, 07 7, 02 9	3, 62 6, 42 9	4, 07 7, 02 9	3, 62 6, 42 9
Eq uit ati o* y r	70 %	70 %	70 %	70 %
Ne t in ter est -be ari de bt * ng	49 5, 47 9	25 8, 07 0	49 5, 47 9	25 8, 07 0
h f low fro ion Cas rat m o pe s	-58 92 1 ,	26 1, 25 8	91 2, 93 7	1, 45 8, 16 2
h f low fro m f ina nci Cas ng	21 6, 46 5	-13 0, 33 7	-37 4, 84 8	-74 8, 06 5
PR OF ITA BIL ITY
sic rni har e ( K) Ba DK ea ngs pe r s	-0. 14	-0. 45	19 .74	10 .52
Dil d e ing sha ( K) ute DK arn s p er re	-0. 14	-0. 45	19 .74	10 .52
RO CE	4.3 %	7.5 %	21 .5%	30 .8%
VO LU ME S
d v olu s ( ) Ha ste tgw rve me	12 23 4 ,	11 47 0 ,	44 59 1 ,	54 61 5 ,
VA P p rod d v olu s ( tgw ) uce me	2, 84 5	4, 94 9	8, 35 5	19 06 7 ,
So ld f eed to nn es	24 71 1 ,	18 95 5 ,	5 77 77 ,	78 13 4 ,
al f eed les Int to ern sa nn es	21 64 9 ,	17 59 7 ,	70 24 0 ,	72 96 0 ,
olt lea sed th d ( ) Sm re ou san pcs	3, 26 7	3, 40 9	12 49 2 ,	9, 92 8

* Aligned for fair value adjustment of biomass, onerous contracts provisions, income from associates and revenue tax – refer to Note 10

** Return on average capital employed, based on operational EBIT – refer to Note 10

*** Comparing figures with figures from end 2017

Summary of the 4th Quarter 2018 and 12 Months of 2018

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

The Bakkafrost Group delivered a total operating EBIT of DKK 230.5 million in Q4 2018. Harvested volumes were 12.2 thousand tonnes gutted weight. The combined farming and VAP segments made an operational EBIT of DKK 207.7 million. The farming segment made an operational EBIT of DKK 204.4 million. The development of the salmon spot price in the quarter was nearly flat, compared to the previous quarter. Bakkafrost's achieved prices in this quarter decreased and thus had a negative effect on the operational EBIT. The VAP segment made an operational EBIT of DKK 3.3 million. The EBITDA for the FOF segment was DKK 60.4 million.

The Group made a profit for Q4 2018 of DKK -6.6 million (DKK -21.9 million). For 2018, the profit was DKK 960.3 million (DKK 511.4 million).

The total volumes harvested in Q4 2018 were 12,234 tonnes gutted weight (11,470 tgw). Total harvested volumes for 2018 were 44,591 tonnes gutted weight (54,615 tgw). 1,500 tonnes of harvest were moved to 2019, and consequently expected harvest volumes for 2019 are increased from 53,000 to 54,500 tonnes gutted weight.

3.3 million (3.4 million) smolts were transferred during Q4 2018. During 2018, 12.5 million (9.9 million) smolts were transferred.

The revenue in the farming segment for Q4 2018 was negatively affected by a combination of various circumstances. As the market strategy for sales in 2018 was primarily focused on fresh whole salmon to the high-end spot market, volumes to the VAP segment were exceptionally low throughout 2018. Consequently, Bakkafrost was temporarily vulnerable and limited in flexibility to mitigate the following disruptions: Bakkafrost's harvesting plant in Glyvrar was banned access to the Russian market in Q4 2018 and had a disruption in delivery to other high-end markets from the new harvest plant in Suðuroy, due to delay in issuance of certificates to these markets.

The market disruptions are more or less solved as volumes to VAP contracts now have increased, the certificates to the harvest factory in Suðuroy are in place and access to the Russian market is expected shortly.

The combined farming and VAP segments made an operational EBIT of DKK 207.7 million (DKK 265.4 million) in Q4 2018. The operational EBIT per kg in Q4 2018 was DKK 16.98 (DKK 23.14), which corresponds to NOK 21.91 (NOK 29.88) for the combined farming and VAP segments. For 2018, the combined farming and VAP segments made an operational EBIT of DKK 943.2 million (DKK 1,232.8 million).

The farming segment made an operational EBIT of DKK 204.4 million (DKK 228.8 million) in Q4 2018. The harvested volumes were higher, but the achieved price was lower in Q4 2018, compared to Q4 2017. For 2018, the operational EBIT was DKK 965.7 million (DKK 1,308.2 million).

The Faroese Parliament changed the revenue tax for farming operations in the Faroe Islands from 4.5% to 5.0% in December 2018. The change will be effective from 1 January 2019.

The VAP segment made an operational EBIT of DKK 3.3 million (DKK 36.5 million) for Q4 2018. For 2018, the operational EBIT was DKK -22.4 million (DKK -75.4 million.

The FOF segment (fishmeal, oil and feed) made an EBITDA of DKK 60.4 million (DKK 93.6 million) for Q4 2018, and the EBITDA margin was 21.0% (25.5%). The EBITDA was DKK 254.3 million for 2018 (DKK 266.1 million), corresponding to an EBITDA margin of 20.0% (20.4%).

During Q4 2018, Havsbrún sourced 46,478 tonnes (50,852 tonnes) of raw material, and for 2018, Havsbrún sourced 302,465 tonnes (342.456 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.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as dividend. The financial position of Bakkafrost is strong with a solid balance sheet, a competitive operation and available credit facilities. The Board of Directors proposes to the Annual General Meeting that DKK 8.25 (NOK 10.70*) per share shall be paid out as dividend. The Annual General Meeting will be convened on Friday the 5th of April 2019.

The net interest-bearing debt amounted to DKK 495.5 million at the end of Q4 2018 (DKK 258.1 million at year-end 2017). Undrawn credit facilities amounted to DKK 997.7 million at the end of Q4 2018.

The equity ratio was 70% at 31 December 2018, compared to 70% at the end of 2017.

*The dividend per share in NOK is subject to changes depending on the exchange rate between DKK and NOK, which will be announced after the Annual General Meeting.

Financial Review

Income Statement

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

The operating revenue amounted to DKK 750.3 million (DKK 906.1 million) in Q4 2018, and for 2018, the operating revenue amounted to DKK 3,177.4 million (DKK 3,770.0 million).

The farming segment's harvest volume was higher, and the achieved prices were lower in Q4 2018, compared to the same quarter last year. The VAP segment had lower revenues because of lower volumes, but higher prices in Q4 2018, compared to Q4 2017. The FOF segment had lower external revenue in Q4 2018, mainly due to lower external sales of fishmeal, compared to Q4 2017.

Operational EBIT was DKK 230.5 million (DKK 331.2 million) in Q4 2018. All segments had lower operational EBIT in Q4 2018, compared to Q4 2017. For 2018, the operational EBIT was DKK 1,074.9 million (DKK 1,377.7 million).

The fair value adjustment of the Group's biological assets amounted to DKK -239.5 million (DKK -358.7 million) in Q4 2018. The negative adjustment is due to lower forward market prices for salmon at the end of the quarter, compared to the beginning of the quarter. For 2018, the fair value adjustment amounted to DKK 195.8 million (DKK -693.5 million).

Change in provisions for onerous contracts amounted to DKK 17.0 million (DKK 0 million) in Q4 2018. For 2018, the change in provisions for onerous contracts amounted to DKK 0.0 million (DKK 67.4 million).

In Q4 2018, there was a profit from associated companies amounting to DKK 11.1 million (DKK 18.4 million). For 2018, the result from associated companies amounted to DKK 9.4 million (DKK 17.3 million).

The revenue tax amounted to DKK -24.0 million in Q4 2018 (DKK -20.3 million). The revenue tax increased because of higher harvested volumes and higher market prices, compared to the same quarter last year. For 2018, the revenue tax was DKK -95.9 million (DKK -119.7 million).

Net interests in Q4 2018 were DKK -1.7 million (DKK 2.1 million). For 2018, net interests were DKK -11.9 million (DKK -25.2 million).

Net taxes amounted to DKK 0.2 million (DKK 5.3 million) in Q4 2018. For 2018, net taxes amounted to DKK -211.8 million (DKK -112.5 million).

The result for Q4 2018 was DKK -6.6 million (DKK -21.9 million) and for 2018, the result was DKK 960.3 million (DKK 511.4 million).

Statement of Financial Position

(Figures in parenthesis refer to end last year)

The Group's total assets amounted to DKK 5,802.5 million (DKK 5,155.5 million) at the end of Q4 2018.

Intangible assets amounted to 389.7 (DKK 376.7 million) at the end of Q4 2018.

Property, plant and equipment amounted to DKK 2,884.3 million (DKK 2,570.4 million) at the end of Q4 2018. In Q4 2018, Bakkafrost made investments in PP&E amounting to DKK 147.0 million.

Non-current financial assets amounted to DKK 112.8 million (DKK 76.7 million) at the end of Q4 2018.

The carrying amount (fair value) of biological assets amounted to DKK 1,358.5 million (DKK 1,096.7 million) at the end of Q4 2018. Biological assets have increased due to higher fair value adjustment, compared to year end 2017. Included in the carrying amount of the biological assets is a fair value adjustment amounting to DKK 382.8 million (DKK 187.0 million) at the end Q4 of 2018.

Inventories amounted to DKK 438.8 million (DKK 305.8 million) at the end of Q4 2018.

Total receivables, including long-term receivables, amounted to DKK 301.5 million (DKK 419.6 million) at the end of Q4 2018.

The Group's equity amounted to DKK 4,077.0 million (DKK 3,626.4 million) at the end of Q4 2018. The change in equity consists primarily of the positive result for 2018 and the dividend payment of DKK 510.7 million in Q2 2018.

Total non-current liabilities amounted to DKK 1,346.5 million (DKK 602.1 million) at the end of Q4 2018.

Deferred taxes and other taxes amounted to DKK 534.4 million (DKK 455.4 million) at the end of Q4 2018.

Long-term debt was DKK 812.1 million (DKK 146.7 million) at the end of Q4 2018.

At the end of Q4 2018, the Group's total current liabilities were DKK 379.0 million (DKK 926.9 million). The current liabilities consist of accounts payable and tax payable.

Derivatives amounted to DKK 0.3 million (DKK 127.3 million) at the end of Q4 2018.

Short-term interest-bearing debt amounted to DKK 0.0 million (DKK 378.3 million) at the end of Q4 2018.

The equity ratio was 70% at the end of Q4 2018, compared with 70% at the end of 2017.

Cash Flow

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

The cash flow from operations was DKK -58.9 million (DKK 261.3 million) in Q4 2018. The changes in current debts had a positive effect on the cash flow from operations, and changes in inventory had a negative effect as well as taxes paid in the period, which amounted to DKK -201.7 million (DKK -140.3 million). For 2018, the cash flow from operations was DKK 912.9 million (DKK 1,458.2 million).

The cash flow from investment activities amounted to DKK -146.8 million (DKK -168.8 million) in Q4 2018. The amount relates to investments in property, plant and equipment. For 2018, the cash flow from investments amounted to DKK -530.7 million (DKK -635.5 million).

The cash flow from financing activities totalled DKK 216.5 million (DKK -130.3 million) in Q4 2018. For 2018, cash flow from financing amounted to DKK -374.8 million (DKK -748.1 million).

In Q4 2018, net change in cash flow amounted to DKK 10.7 million (DKK -37.8 million). For 2018, net change in cash flow amounted to DKK 7.3 million (DKK 74.6 million).

At the end of Q4 2018, Bakkafrost had unused credit facilities of DKK 997.7 million (DKK 1,004.6 million).

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 Q4 2018 were 12,234 tonnes gutted weight (11,470 tgw) – an increase in volume of 7%. 3,996 tgw came from the North region and 8,238 tgw from the West region. Total harvested volumes for 2018 were 44,591 tonnes gutted weight (54,615 tgw).

3.3 million (3.4 million) smolts were transferred in Q4 2018. During 2018, 12.5 million (9.9 million) smolts were transferred. This is in line with the smolt transfer plan.

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

Financial Performance

In Q4 2018, the operating revenue for Bakkafrost's farming segment was DKK 681.9 million (DKK 577.3 million). The operating revenue for the farming segment for 2018 was DKK 2,568.4 million (DKK 2,986.6 million).

The total revenue for the farming segment increased in Q4 2018, compared with Q4 2017, mainly because higher share is sold externally and not to the VAP segment during this period.

In Q4 2018, the farming segment's EBIT amounted to DKK -58.9 million (DKK -150.0 million). The farming segment's EBIT for 2018 was DKK 1,065.9 million (DKK 495.1 million).

Operational EBIT amounted to DKK 204.4 million (DKK 228.8 million) in Q4 2018, which corresponds to an operational EBIT margin of 30% (40%). For 2018, operational EBIT was DKK 965.7 million (DKK 1,308.2 million).

Operational EBIT/kg for the farming segment was DKK 16.71 (NOK 21.56) in Q4 2018, compared with DKK 19.95 (NOK 25.76) in Q4 2017. Operational EBIT/kg for 2018 was DKK 21.66 (NOK 27.89), compared with DKK 23.95 (NOK 30.02) for 2017.

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

23% (43%) of the total harvested volumes in Q4 2018 went to production of VAP products and 19% (35%) of the harvested volumes in 2018 went to production of VAP products.

The VAP production in Q4 2018 was 2,845 tonnes gutted weight (4,949 tgw). The decrease in production in Q4 2018 was 46%, compared to Q4 2017. The harvest volumes were higher, and the contract coverage is reduced in Q4 2018, compared to Q4 2017. For 2018, the VAP production was 8,355 tgw (19,067 tgw).

Financial Performance

The operating revenue for the VAP segment amounted to DKK 109.0 million (DKK 288.4 million) in Q4 2018. The decrease in revenue is due to lower volumes in Q4 2018, compared with Q4 2017. In 2018, the VAP revenue was DKK 364.8 million (DKK 998.8 million).

The VAP segment had an EBIT amounting to DKK 20.4 million (DKK 36.5 million) in Q4 2018. Changes in onerous contracts were DKK 17.0 million (DKK 0.0 million). In 2018, the VAP segment's EBIT amounted to DKK -22.4 million (DKK -8.1 million).

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

Operational EBIT amounted to DKK 3.3 million (DKK 36.5 million) in Q4 2018, corresponding to an operational EBIT of DKK 1.17 (NOK 1.51) per kg gutted weight in Q4 2018, compared with DKK 7.38 (NOK 9.54) per kg gutted weight in Q4 2017.

Although the volumes were low, the stable spot price and improved efficiency had a positive effect on the VAP segment's margin as the VAP segment buys the raw material at spot prices.

For 2018, operational EBIT amounted to DKK -22.4 million (DKK -75.4 million), corresponding to an operational EBIT of DKK -2.68 (NOK -3.46) per kg, compared with an operational EBIT of DKK -3.96 (NOK -4.96) in 2017.

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 46,478 tonnes (50,852 tonnes) of raw material to produce fishmeal and fish oil in Q4 2018. The raw material intake depends on the fishery in the North Atlantic and available species of fish. In 2018, Havsbrún received 302,465 tonnes (342,456 tonnes) of raw material.

The production of fishmeal in Q4 2018 was 10,801 tonnes (11,757 tonnes). In 2018, Havsbrún produced 65,141 tonnes (74,089 tonnes) of fishmeal.

The production of fish oil in Q4 2018 was 3,887 tonnes (4,096 tonnes). The production of fish oil varies, depending on the species of fish sourced for production and the timing of catch. For 2018, Havsbrún produced 10,257 tonnes (10,387 tonnes) of fish oil.

Sales of feed amounted to 24,711 tonnes (18,955 tonnes) in Q4 2018, of which the farming segment internally used 21,649 tonnes (17,597 tonnes) or 87.6% (92.8%). For 2018, Havsbrún sold 77,775 tonnes (78,134 tonnes) of feed.

Financial Performance

The operating revenue for the FOF segment amounted to DKK 287.7 million (DKK 366.9 million) in Q4 2018, of which DKK 213.6 million (DKK 163.2 million) represented sales to Bakkafrost's farming segment, corresponding to 74.3% (44.5%). For 2018, the revenue amounted to DKK 1,268.6 million (DKK 1,303.2 million) of which DKK 682.1 million (DKK 682.8 million) represented sales to Bakkafrost's farming segment, corresponding to 53.8% (52.4%).

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

Total revenue for the FOF segment in Q4 2018 decreased 22%, 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 sold in Q4 2018, compared to Q4 2017.

EBITDA was DKK 60.4 million (DKK 93.6 million) in Q4 2018, and the EBITDA margin was 21.0% (25.5%). Havsbrún sources raw pelagic fish for the fishmeal and fish oil production, which are part of the recipe to produce salmon feed. For 2018, the EBITDA was DKK 254.3 million (DKK 266.1 million), corresponding to an EBITDA margin of 20.0% (20.4%).

Outlook

Market

The global supply of Atlantic salmon in Q4 2018 increased around 5%, compared to Q4 2017, according to the latest estimate from Kontali Analyse. The global supply for 2018 increased by 6%, compared to 2017.

The global harvest of Atlantic salmon in Q1 2019 is expected to increase around 5%, compared to Q1 2018. The estimated global harvest of Atlantic salmon for 2019 is an increase of around 4-6%, 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.

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 12.5 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 33% 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.

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

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

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. The aim of the investment program is to minimize the biological risk, increase efficiency and create sustainable organic growth.

Bakkafrost's strategy and investment program will be presented at Bakkafrost's Capital Markets Day on 12 June 2019 in the Faroe Islands.

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 2017 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 2017, exposed to the salmon price. Global supply of salmon is expected to increase in 2019 and will influence the salmon price.

The Annual Report 2017 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 2018 to 31 December 2018.

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, February 18th, 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

Board Member Board Member

Øystein Sandvik Annika Frederiksberg

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 31 December 2018, as well as the results of the Group activities and cash flows for the period 1 January 2018 to 31 December 2018.

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 2017.

Consolidated Income Statement

For the period ended 31 December 2018

Consolidated Statement of Comprehensive Income

For the period ended 31 December 2018

	Q 4	Q 4	YT D	YT D		Q 4	Q 4	YT D	YT D
DK K 1 00 0 ,	20 18	20 17	20 18	20 17	DK K 1 00 0 ,	20 18	20 17	20 18	20 17
tin Op era g r ev en ue	75 0, 34 8	90 6, 07 0	3, 17 7, 42 2	3, 77 0, 04 9	Pro fit for th eri od e p	-6, 62 0	-21 90 9 ,	96 0, 29 2	51 1, 40 2
Pu rch of od ase go s	-33 2, 72 1	-21 0, 03 0	-1, 07 4, 64 5	-88 3, 87 1	Ch fin ial de riv ati ang es on anc ve s	30 8	-14 91 0 ,	12 6, 93 5	-25 79 9 ,
Ch e i n i ent d b iolo ica l as set s (a t c ost ) ang nv ory an g	15 2, 01 7	-13 27 2 ,	19 7, 29 7	-14 1, 40 6	f in eff He e t ect reo com ax	-56	2, 98 3	-22 84 8 ,	4, 64 4
Sal d p l ex ary an ers on ne pen ses	-10 3, 51 8	-10 6, 74 4	-35 3, 75 6	-40 0, 26 7	e t har e-b d p nt Res erv o s ase ay me	56 9	80 8	2, 27 9	1, 22 3
Oth tin er op era g e xp en ses	-18 6, 56 9	-19 8, 45 2	-67 4, 90 7	-78 3, 26 8	Cu tra nsl ati dif fer rre ncy on enc es	-1	-31 7	-95	41 5
cia tio De pre n	-51 44 7 ,	-46 33 2 ,	-19 8, 89 8	-18 3, 59 0	Ad jus of sha tm ent tre asu ry res	17 7	-1, 36 4	2, 63 4	2, 88 5
Op tio l EB IT * era na	23 0, 50 9	33 1, 24 0	1, 07 4, 91 2	1, 37 7, 64 7	her reh ive inc be Net ot e to co mp ens om re
					cla ssif ied fit los s in bse iod to nt pro or su que per s	99 7	-12 80 0 ,	10 8, 90 5	-16 63 2 ,
Fai alu dju f b iolo ica l as stm ent set r v e a s o g s	-23 9, 54 8	-35 8, 69 4	19 5, 81 9	-69 3, 54 0
On tra cts ero us con	17 07 6 ,	0	0	67 37 6 ,	her reh ive inc o b Net ot ot t co mp ens om e n e r e
e f iat Inc om rom as soc es	10 11 4 ,	18 39 9 ,	9, 36 9	30 2 17 ,	cla ssif ied fit los s in bse iod to nt pro or su que per s	0	0	0	0
Rev tax en ue	-24 03 6 ,	-20 28 9 ,	-95 86 7 ,	-11 9, 68 1
nin bef in Ear ter est d t ( EB IT) gs ore an ax es	-4, 89 5	-29 34 4 ,	1, 184 23 3 ,	64 9, 104	Oth he nsi in er com pre ve com e	99 7	-12 80 0 ,	10 8, 90 5	-16 63 2 ,
t in Ne ter est re ve nue	56 2	38 5	2, 65 1	1, 39 5	al o the reh ive inc e fo r th eri od Tot r co mp ens om e p	-5, 62 3	-34 70 9 ,	1, 06 9, 19 7	49 4, 77 0
Ne t in ter est ex pe nse s	-2, 26 2	-6, 00 4	-12 47 7 ,	-26 36 5 ,
Ne t c eff ect urr en cy s	29 3	9, 26 0	1, 41 9	4, 65 0	Co reh siv e in e f the rio d mp en com or pe
Oth fin ial er anc ex pe nse s	-51 9	-1, 53 8	-3, 76 0	-4, 90 0	rib att uta ble to
nin bef s ( T) Ear ta EB gs ore xe	-6, 82 1	-27 24 1 ,	1, 17 2, 06 6	62 3, 88 4	llin int No tro sts n- con g ere	0	0	0	0
					f P / akk afr Ow F B ost ner s o	-5, 62 3	-34 70 9 ,	1, 06 9, 19 7	49 4, 77 0
Tax es	20 1	5, 33 2	-21 1, 77 4	-11 2, 48 2
fit s fo eri Pro los r th od or e p	-6, 62 0	-21 90 9 ,	96 0, 29 2	51 1, 40 2
fit los s fo r th tri bu tab le t Pro at or e y ear o
No tro llin int sts n-c on g ere	0	0	0	0
f P kaf Ow / F B ak t ne rs o ros	-6, 62 0	-21 90 9 ,	96 0, 29 2	51 1, 40 2
nin sh ( K) Ear DK gs per are	-0. 14	-0. 45	19 .74	10 .52
Dil d e ing sha ( K) ute DK arn s p er re	-0. 14	-0. 45	19 .74	10 .52

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

Consolidated Statement of Financial Position

As at 31 December 2018

	31 De c	31 De c
DK K 1 00 0 ,	20 18	20 17
AS SET S
No t a ts n-c urr en sse
Int ible set ang as s	38 9, 74 5	37 6, 67 5
Pro rty lan t a nd uip nt pe , p eq me	2, 88 4, 32 5	2, 57 0, 43 0
Fin ial ets anc ass	11 2, 76 6	76 70 2 ,
eiv ab les Lon ter g- m rec	9, 20 0	0
To tal t a ts no n-c urr en sse	3, 39 6, 03 6	3, 02 3, 80 7
Cu nt ets rre ass
Bio log ica l as set s ( bio ss) ma	1, 35 8, 46 2	1, 09 6, 66 4
Inv ent ory	43 8, 84 7	30 5, 84 5
To tal in nto ve ry	1, 79 7, 30 9	1, 40 2, 50 9
cei ble Ac nts cou re va	26 9, 34 8	26 2, 49 3
Oth eiv ab les er rec	22 93 6 ,	15 7, 15 6
tal cei ble To re va s	29 2, 28 4	41 9, 64 9
h a nd sh uiv ale Cas nts ca eq	31 6, 89 4	30 9, 55 1
tal To nt ets cu rre ass	2, 40 6, 48 7	2, 13 1, 70 9
TO TA L A SSE TS	5, 80 2, 52 3	5, 15 5, 51 6

DK K 1 00 0 ,	31 De c 20 18	31 De c 20 17
EQ UIT Y A ND LIA BIL ITI ES
uit Eq y
Sha ita l re cap	48 85 8 ,	48 85 8 ,
Oth uit er eq y	4, 02 8, 17 1	3, 57 7, 57 1
To tal uit eq y	4, 07 7, 02 9	3, 62 6, 42 9
t li ab ilit ies No n-c urr en
fer red d o the De r ta an xes	53 4, 43 0	45 5, 44 8
int bea rin de bt Lon ter st- g- m ere g	81 2, 05 3	6, 69 6 14
tal t li ab ilit ies To no n-c urr en	1, 34 6, 48 3	60 2, 144
Cu nt liab ilit ies rre
Fin ial de riv ati anc ve s	32 0	12 7, 25 5
Sho in -be ari de bt rt-t ter est erm ng	0	37 8, 30 0
ble d o the r d ebt Ac nts cou pa ya an	37 8, 69 1	42 1, 38 8
tal liab ilit ies To nt cu rre	37 9, 01 1	92 6, 94 3
tal lia bil itie To s	1, 72 5, 49 4	1, 52 9, 08 7
TO TA L E Q UIT Y A ND LIA BIL ITI ES	5, 80 2, 52 3	5, 15 5, 51 6

Consolidated Cash Flow Statement

For the period ended 31 December 2018

00 0 DK K 1	Q 4 20 18	Q 4 20 17	YT D 20 18	YT D 20 17
,
nin bef in Ear ter est d t ( EB IT) gs ore an ax es	-4, 89 5	-29 34 4 ,	1, 184 23 3 ,	64 9, 104
Ad jus s fo rite -do nd de cia tio tm ent r w wn s a pre n	51 44 7 ,	46 33 2 ,	89 8 17 7,	18 3, 59 0
Ad jus s fo alu dju of bi tm ent stm ent r v e a om ass	23 9, 54 8	35 8, 69 4	-19 5, 81 9	69 3, 54 0
Ad jus s fo r in e f iat tm ent com rom as soc es	-11 10 4 ,	-18 39 8 ,	-9, 36 9	-17 30 1 ,
Ad jus tm ent s fo eff ect r c urr en cy s	1, 11 9	9, 25 9	11 05 9 ,	11 19 8 ,
id Tax es pa	-20 67 1, 8	0, -14 33 7	-20 67 1, 8	0, -14 33 7
Ad jus s fo isio n f tm ent tra cts r p rov or on ero us con	-17 07 6 ,	0	0	-67 37 6 ,
Ch in inv ent an ge ory	-14 3, 06 6	8, 64 5	-19 8, 98 1	11 7, 99 0
Ch in eiv ab les an ge rec	-34 7	-54 38 1 ,	10 3, 43 7	-2, 07 3
Ch e i de bts ent ang n c urr	27 13 1 ,	80 78 8 ,	42 15 7 ,	29 82 7 ,
h f low fro ion Cas rat m o pe s	-58 92 1 ,	26 1, 25 8	91 2, 93 7	1, 45 8, 16 2
Cas h f low fro inv est nts m me
isit ion od wi ll Ac qu go	20 2	0	-12 05 7 ,	0
ds fro ale of fix ed Pro ets cee m s ass	0	0	25 00 0 ,	0
Pay nts fo has f fi xed set me r p urc e o as s	-14 7, 01 9	-16 8, 76 4	-51 6, 79 3	-63 5, 54 2
Ne t in stm ent in fin ial ets ve anc ass	0	0	-26 89 6 ,	0
h f low fro inv Cas est nts m me	-14 6, 81 7	-16 8, 76 4	-53 0, 74 6	-63 5, 54 2
Cas h f low fro m f ina nci ng
Ch of int bea rin de bt (s ho nd lon ) st- rt a an ge ere g g	21 8, 51 0	-12 3, 85 9	14 6, 78 3	-29 8, 75 7
Fin ial inc anc om e	56 1	38 4	2, 65 0	1, 39 3
Fin ial anc ex pen ses	-2, 78 3	-7, 06 6	-16 23 7 ,	-30 78 9 ,
Ne t p eed s f le o f o sh roc rom sa wn are s	17 7	20 4	2, 63 4	2, 88 3
Div ide nd id pa	0	0	0, 67 8 -51	-42 2, 79 5
h f fro m f ina nci Cas low ng	21 6, 46 5	-13 0, 33 7	-37 4, 84 8	-74 8, 06 5
ha in sh d c ash uiv ale in rio d Ne t c nts nge ca an eq pe	10 72 7 ,	-37 84 3 ,	7, 34 3	74 55 5 ,
iva ing ba Cas h a nd h e len ts lan cas qu – o pen ce	30 6, 16 7	34 7, 39 4	30 9, 55 1	23 4, 99 6
h a nd sh uiv ale los ing ba lan al Cas nts tot ca eq – c ce	31 6, 89 4	30 9, 55 1	31 6, 89 4	30 9, 55 1

Consolidated Statement of Changes in Equity

As at 31 December 2018

,00 0 DK K 1	Sha re Cap ital	Sha re Pre miu m Res erv e	Tre asu ry Sha res	Sha re- bas ed nt Pay me	Cur ren cy tra nsl atio n diff ere nce s	iva tive Der s	Pro ed pos Div ide nd	Bio ma ss Fai r val ue adj ust - nts me	Ret ain ed nin Ear gs	Tot al ity Equ
Equ ity 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	2,6 83, 439	3,6 26, 429
sol ida ted fit Con pro	0	0	0	0	0	0	0	195 ,81 9	772 ,45 5	968 ,27 4
Oth hen sive inc er c om pre om e:
Cha n fi cia l de riva tive nge s o nan s	0	0	0	0	0	126 ,93 5	0	0	-13 8,7 48	-11 ,81 3
eof inc ffec Her e ta t om x e	0	0	0	0	0	-22 ,84 8	0	0	22, 848	0
Sha bas ed nt re- pay me	0	0	0	2,2 79	0	0	0	0	0	2,2 79
Cur nsla tion dif fer tra ren cy enc es	0	0	0	0	-95	0	0	0	0	-95
ive inc Tot al o the reh r co mp ens om e	0	0	0	2,2 79	-95	104 ,08 7	0	0	-11 5,9 00	-9,6 29
Tot al c hen siv e in om pre com 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 ow ner s:
Tre har asu ry s es	0	0	2,6 34	0	0	0	0	0	0	2,6 34
Pai d-o ut d ivid end	0	0	0	0	0	0	-51 3,0 09	0	2,3 31	-51 0,6 78
al t tion wi th o Tot ran sac wn ers	0	0	2,6 34	0	0	0	-51 3,0 09	0	2,3 31	-50 8,0 44
Tot al c han in ity ges equ	0	0	2,6 34	2,2 79	-95	104 ,08 7	-51 3,0 09	195 ,81 9	658 ,88 6	450 ,60 1
al e qui Tot ty 3 1.1 2.2 018	48, 858	306 ,53 7	-15 ,52 5	6,1 53	6,1 76	-26 4	0	382 ,77 0	3,3 42, 325	4,0 77, 029
ity 01. 01. 201 Equ 7	48, 858	306 ,53 7	-21 ,04 5	2,6 51	5,8 56	-83 ,19 6	425 ,06 5	880 ,49 1	1,9 83, 818	3,5 49, 035
Con sol ida ted fit pro	0	0	0	0	0	0	0	-69 3,5 40	1,2 10, 359	516 ,81 9
Oth hen sive inc er c om pre om e:
Cha n fi cia l de riva tive nge s o nan s	0	0	0	0	0	-25 ,79 9	0	0	0	-25 ,79 9
Her eof inc e ta ffec t om x e	0	0	0	0	0	4,6 44	0	0	0	4,6 44
Sha bas ed nt re- pay me	0	0	0	1,2 23	0	0	0	0	0	1,2 23
nsla tion dif fer Cur tra ren cy enc es	0	0	0	0	415	0	0	0	0	415
Tot al o the reh ive inc r co mp ens om e	0	0	0	1,2 23	415	-21 ,15 5	0	0	0	-19 ,51 7
al c hen siv e in Tot om pre com e	0	0	0	1,2 23	415	-21 ,15 5	0	-69 3,5 40	1,2 10, 359	497 ,30 2
Tra ctio ith nsa n w ow ner s:
Tre har asu ry s es	0	0	2,8 86	0	0	0	0	0	0	2,8 86
Pai d-o ut d ivid end	0	0	0	0	0	0	-42 5,0 65	0	2,2 71	-42 2,7 94
div ide Pro ed nd pos	0	0	0	0	0	0	513 ,00 9	0	-51 3,0 09	0
Tot al t tion wi th o ran sac wn ers	0	0	2,8 86	0	0	0	87, 944	0	-51 0,7 38	-41 9,9 08
al c han in ity Tot ges equ	0	0	2,8 86	1,2 23	415	-21 ,15 5	87, 944	-69 3,5 40	699 ,62 1	77, 394

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 2017 is available upon request from the company's registered office at Bakkavegur 8, 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 2017.

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 had a minor change in Q4 2018, compared to those applied in the Annual Report as at and for the year ended 31 December 2017.

From Q4 2018, the interest costs will no longer be capitalized in biological assets. This change has an effect of 2.9 million DKK in accrued capitalized interest and was recognized in the income statement for Q4 2018. The change is not considered material and is in line with the process of aligning the accounting policy in the industry group. See Note 3.6 in the Annual Report for 2017 for further details.

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 2017.

For other risk exposures, reference is made to the Management's Statement in the Annual Report for 2017, 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

	3 1 De c	3 1 De c		3 1 De c	3 1 De c
D K K 1, 0 0 0	2 0 1 8	2 0 1 7	be f f is he ( ho d ) Nu t m r o s o n a ve rag e us an	2 0 1 8	2 0 1 7
			kg 1 <	4, 9 5 1	4, 3 9 0
io log ica l a ing B ts t 0 1. 0 1. sse ca rry am ou n	1, 0 9 6, 6 6 5	1, 8 5 8, 4 3 5	kg kg 1 2 <	2, 1 1 3	2, 4 5 6
Inc du to du t ion ha rea se e p ro c or pu rc se s	1, 3 3 3, 1 6 0	1, 3 6 8, 6 0 8	kg kg 2 3 <	2, 0 4 4	1, 8 1 3
du ion du ha ing le (co f g ds l d ) Re t to t ts c e rv es or sa s o oo so	-1, 2 7 3, 1 5 0	-1, 4 7 5, 5 7 1	kg kg 3 4 <	1, 7 8 2	1, 6 6 5
ir v lue d j he be inn ing f he io d r d Fa tm t a t t t a a us en g o p er ev ers e	-1 8 6, 9 5 6	-8 8 0, 4 9 2	4 kg <	4, 3 5 9	4, 1 0 5
j Fa ir v lue d tm t a t t he d o f t he io d a a us en en p er	3 8 2, 7 7 5	1 8 6, 9 5 6	f f is To ta l n be he t s um r o s a ea	1 5, 2 4 9	1 4, 4 2 9
l o f e l im ina ion he be inn ing f he io d Re t t t t ve rsa a g o p er	5 9, 7 5 8	9 8, 4 8 7
l im ina ion E t s	3, 9 0 -5 7	9, 8 -5 7 5	f s Nu be l ts lea d ( t ho d ) m r o mo re se us an
io ica ing f io B log l a ts t a t t he d o t he d sse ca am ou n en er	1, 3 5 8, 4 6 2	1, 0 9 6, 6 6 5	Fa ing No t h rm r	3, 9 7 8	6, 3 7 0
rry p			Fa ing We t rm s	8, 6 0 5	3, 5 5 8
ice io ica Co b log l a ts	1, 0 2 9, 4 7 7	9 6 2, 7 8 3	To ta l n be f s l ts lea d um r o mo re se	1 2, 5 8 3	9, 9 2 8
t p s r sse i ize in Ca ta l d ter t es	0	6, 6 8 4
p ir v io Fa lue d tm t a t t he d o f t he d	3 8 7 7 5	1 8 9 5 6	i iv i in Se t ty D K K 1, 0 0 0 ns
j a a us en en p er	2,	6,	ha in d isc C t r te +1 % ng e ou n a	9 3, 5 8 6	7 3, 9 6 1
E l im ina t ion s	-5 3, 7 9 0	-5 9, 7 5 8	ha in d isc C t r te -1 % ng e ou n a	-1 0 4, 9 9 1	-8 3, 0 3 8
B io log ica l a ts ing t sse ca rry am ou n	1, 3 5 8, 4 6 2	1, 0 9 6, 6 6 5	ha in les ice C 5 D K K ng e sa p r +	-2 2 4, 1 4 3	-2 1 2, 8 6 9
B iom ( to ) as s o n a ve rag e nn es			ha in les ice C 5 D K K ng e sa p r -	2 2 4, 1 4 3	2 1 2, 8 6 9
kg 1 <	9 8 1, 5	1, 7 7 5	C ha in b iom lum 1 % ng e as s v o e +	-6, 5 5 1	-4, 2 1 7
kg 2 kg 1 <	2, 9 9 5	3, 6 0 5	C ha in b iom lum 1 % ng e as s v o e -	6, 5 5 1	4, 2 1 7
2 kg 3 kg <	8 9 5, 1	6 2 4, 5
kg kg 3 4 <	6, 0 1 0	5, 8 1 0	fo ice in On d p E U R F C A Os lo * e y ea r rw ar r s
kg 4 <	2 2, 9 6 2	2 1, 5 4 4	io d e d Pe r n	6. 0 1	5. 3 0
lum f b iom Vo t s e o as s a ea	3 9, 0 7 8	3 7, 2 9 6	( fo d ) 1 Q rw ar	6. 4 8	5. 4 8
			( fo d ) 2 Q rw ar	6. 5 2	5. 4 2
			( fo d ) 3 Q rw ar	5. 9 4	5. 4 1
			4 Q ( fo d ) rw ar	6. 1 2	5. 5 8
			* So F is h Po l urc e o

Note 5. Segments

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

l d d d d V t a u e a e p r o u c s	Q 4	Q 4	Y T D	Y T D
D K K 1, 0 0 0	2 0 1 8	2 0 1 7	2 0 1 8	2 0 1 7

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

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

Reconciliation of reportable segments

i f t G b t ( E B T ) o r o u p e a r n n g s e o r e a x e s	Q 4	Q 4	Y T D	Y T D
0 0 0 D K K 1,	2 0 8 1	2 0 1 7	2 0 8 1	2 0 1 7
ing Fa rm	-5 7, 1 5 4	-1 3 9, 6 7 5	1, 0 5 5, 9 1 5	4 8 6, 9 3 7
( lue d de d du ) V A P Va A Pr ts o c	0, 2 3 3 7	6, 3 2 8 8	9 -2 2, 4 3	-9, 3 2 4
( is hm l, f is h i l a d f is h d ) F O F F O Fe ea n e	6 0, 2 6 3	9 6, 7 0 5	2 3 2, 3 4 1	2 3 6, 7 7 6
l im ina ion E t s	-3 0, 2 6 8	-2 0, 5 5 9	-9 3, 2 4 8	-9 0, 5 0 5
ing be fo ( ) Gr tax E B T ou p ea rn s re es	-6, 8 2 2	-2 7, 2 4 1	1, 1 7 2, 0 6 5	6 2 3, 8 8 4
d l i b i l i i A t t t s s e s a n a e s p e r s e g m e n			3 1 De c	3 1 De c
D K K 1, 0 0 0			2 0 1 8	2 0 1 7
Fa ing * rm		4, 8	6 0, 2 2 7	4, 7 2 8, 4 0 2
V A P ( Va lue A d de d Pr du ts ) * o c			1 9 2, 8 4 1	3 0 2, 1 3 5
F O F ( F is hm l, f is h O i l a d f is h Fe d ) ea n e		7	4 9, 4 5 5	8 0 3, 3 5 9
l im ina ion E t s			0	-6 8, 3 8 0 7
l a To ta ts sse		5,	8 0 2, 2 3 5	6 5, 1 5 5, 5 1
* R ecl ific ati be tw Fa ing d V AP of 11 6 m DK K i n Q 1 2 01 8 ass on een rm an
ing Fa rm		1,	4 8 2, 7 5 1	5 2 9, 9 3 1
( lue d de d du ) V A P Va A Pr ts o c			3 1, 0 7 5	3, 2 4 8
O ( is hm l, f is h O i l a d f is h d ) F F F Fe ea n e		2	0 9, 6 3 4	5 6 2, 1 8 9
l im ina ion E t s			2, 0 3 4	4 3 3, 7 1 9
l l ia b i l i ies To ta t		1,	7 2 5, 4 9 4	1, 5 2 9, 0 8 7

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 181 million. DKK 109 million relate to the building of new hatchery stations. DKK 57 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 2017 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 31 December 2018, the Group held the following classes of assets/liabilities measured at fair value:

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

Note 9. Business Combinations

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
-------------	-------------------

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

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 1 De c	3 1 De c
0 0 0 D K K 1,	2 0 8 1	2 0 1 7
Ca h a d c h e iva len ts s n as qu	3 6, 8 9 1 4	3 0 9, 5 5 1
i fo in d c De t ter t- p os r es an ur ren cy sw ap	0	8 4, 6 3 0

iva ive De t r s	-3 2 0	-1 2 7, 2 5 5
d s ho in be ing de b Lo t- ter ter t- t ng - a n r m es ar	-8 1 2, 0 5 3	-5 2 4, 9 9 6
in ing Ne t ter t- be de b t es ar	-4 9 5, 4 7 9	-2 5 8, 0 7 0

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

Operational EBIT per kg

i t: F	୪ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୊ୟ ୧୬ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୱୣ ୥ ୫ ୣ୬
a r m n g s e g m e n	୘୭ ୪ ୦ୟ ୢ ୴ ୪୳ ሺ ሻ ୲ୟ ୲ୣ ୰୴ ୣୱ ୭ ୫ ୣୱ ୥ ୵
V A P	୪ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୣ୥ ୫ ୣ୬
t: s e g m e n	୘୭ ୪ ୴ ୪୳ ୢ୳ ୢ ሺ ୧ୟ ୪ ୥ ሻ ୲ୟ ୲ୣ ୭ ୫ ୣୱ ୮ ୰୭ ୡୣ ୰ୟ ୵ ୫ୟ ୰ ୵
i d F V A P:	୪ ୢ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୊ୟ ୧୬ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୟ୬ ୣ୥ ୫ ୣ୬
a r m n g a n	୪ ୦ୟ ୢ ୴ ୪୳ ሺ ሻ ୘୭ 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 4	Q 4	Y T D	Y T D
D K K 1, 0 0 0	2 0 1 8	2 0 1 7	2 0 1 8	2 0 1 7
f i fo he he Pro t t to t r y ea r ha ho l de f / k ka fro P F Ba t s re rs o s	-6, 6 2 0	-2 1, 9 0 9	9 6 0, 2 9 2	5 1 1, 4 0 2
ir v lue d j f b iom Fa tm t o a a us en as s	2 3 9, 5 4 8	3 5 8, 6 9 4	-1 9 5, 8 1 9	6 9 3, 5 4 0
is ion On tra ts ero us co n c p rov s	-1 7, 0 7 6	0	0	-6 7, 3 7 6
fa ir v lue d j d Ta tm t a x o n a a us en n is ion tra ts on ero us co n c p rov s d f i fo he A te t t to	-4 0, 0 4 5	-6 4, 5 6 5	3 5, 2 4 7	-1 1 2, 7 1 0
j d p us ro r y ea r ha ho l de f P / f Ba k ka fro t s re rs o s	1 7 5, 8 0 7	2 7 2, 2 2 0	7 9 9, 7 2 0	1, 0 2 4, 8 5 6
im ig T h te d a be e-w e ve rag e n um r f s ha d ing hr h ts tan t o res ou ou g
he t y ea r	8, 6 4 4 5, 7 7 4	8, 6 0 9, 6 4 4 4	8, 6 4 4 5, 7 7 4	8, 6 0 9, 6 4 4 4
j ing A d te d e ha us ar n s p er s re ( be fo fa ir v lue d j f tm t o re a a us en b iom d p is ion fo as s a n rov s r
j tra ts ) ( d te d E P S ) on ero us co n c a us	3. 6 1	5. 6 0	1 6. 4 4	2 1. 0 8

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 4	Q 4	Y T D	Y T D
D K K 1, 0 0 0	2 0 1 8	2 0 1 7	2 0 1 8	2 0 1 7
ion l Gr Op t E B I T ou p - era a	2 3 0, 5 0 9	3 3 1, 2 4 0	1, 0 7 4, 9 1 2	1, 3 7 7, 6 4 7
i l loy d Av Ca ta Em era g e p p e	5, 3 9 4, 0 3 6	4, 4 0 3, 7 7 9	5, 0 0 1, 2 4 9	4, 4 7 3, 2 1 9
R O C E	4. 3 %	7. 5 %	2 1. 5 %	3 0. 8 %

Contacts

P/F BAKKAFROST Bakkavegur 8 FO-625 Glyvrar Faroe Islands Telephone: +298 40 50 00 Fax: +298 40 50 09 Email: bakkafrost@bakkafrost.com Website: www.bakkafrost.com