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Austevoll Seafood ASA

Quarterly Report Nov 8, 2018

3546_rns_2018-11-08_5a9ba8f1-6f56-4346-a237-80ee536fac21.pdf

Quarterly Report

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Financial report Q3 2018

Contents

Key figures for the Group03
Q3 2018 04
Operating segments 04
Cash flows Q3 2018 07
Financial factors at 30 September 201807
Cash flows at 30 September 201808
Statement of financial position at
30 September 2018 08
Risks and uncertainties08
Shareholders09
Market and outlook 09
Income statement12
Condensed statement of comprehensive income 12
Statement of financial position13
Condensed statement of changes in equity13
Cash flow statement14
Note 1 Accounting policies15
Note 2 Related party transactions15
Note 3 Biological assets 15
Note 4 Segments 18
Note 5 Associates 20
Note 6 List of the 20 largest shareholders 20

Austevoll Seafood ASA

Alfabygget N-5392 Storebø NORWAY

www.auss.no

FINANCIAL REPORT Q3 2018

  • Good earnings from fish farming, but harvest volume down on Q3 2017 as expected. Good production throughout Q3.
  • Seasonally low production in the pelagic segment in South America, but good development in production and profit so far this year. EBIT has more than doubled compared with same period in 2017.
  • Seasonally lower activity related to pelagic and whitefish in the North Atlantic.
KEY FIGURES FOR THE GROUP
All figures in NOK 1,000 Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Operating revenue 5 317 212 4 902 771 17 071 741 15 996 920 20 798 933
EBITDA* 1 008 046 1 051 110 4 022 980 3 928 574 4 747 249
EBITDA % 19 % 21 % 24 % 25 % 23 %
EBIT* 770 720 822 034 3 323 415 3 242 891 3 827 155
Pre tax profit before biomass adj.* 757 904 873 360 3 429 071 3 378 474 4 029 098
Pre tax profit 797 847 328 812 4 945 443 2 561 299 2 200 015
Earnings per share (EPS) * 1,44 1,95 6,88 6,99 6,99
Earnings per share (EPS) 1,50 0,85 9,92 5,39 5,00
Dividend per share (paid) 2,80 2,50 2,50
Total assets 37 632 745 34 891 667 35 309 224
Equity 21 849 058 19 165 506 19 171 739
Equity ratio 58 % 55 % 54 %
Net interest bearing debt (NIBD) 4 435 398 4 411 494 4 137 532

* Before fair value adjustments of biological assets

Q3 2018

The Group reported operating revenue of NOK 5,317 million in the quarter, compared with NOK 4,903 million in Q3 2017. The increase in revenue was mainly generated by an increase in sales volume for fishmeal and oil compared with the same quarter in 2017.

EBITDA for the Group in Q3 2018 was NOK 1,008 million, on a par with Q3 2017 (NOK 1,051 million).

EBIT before fair value adjustment related to biological assets in Q3 2018 was NOK 771 million (Q3 2017: NOK 822 million). EBIT after fair value adjustment related to biological assets in Q3 2018 was NOK 843 million (Q3 2017: NOK 310 million). Fair value adjustment related to biological assets was NOK 72 million in Q3 2018 against NOK -512 million in Q3 2017.

Income from associates in Q3 2018 totalled NOK 42 million (Q3 2017: NOK 89 million). The largest associates are Norskott Havbruk AS and Pelagia AS. The Group's associates generate good results, are significant enterprises in their segments and represent substantial values for Austevoll Seafood ASA.

The Group's net interest expense in Q3 2018 totalled NOK -76 million (Q3 2017: NOK -73 million).

Profit before tax and fair value adjustment related to biological assets for Q3 2018 amounted to NOK 758 million, compared with NOK 873 million in Q3 2017.

Profit before tax for the quarter totalled NOK 798 million (Q3 2017: NOK 329 million). Profit after tax was NOK 608 million (Q3 2017: NOK 270 million).

OPERATING SEGMENTS

Lerøy Seafood Group ASA (LSG)

LSG's operations comprise farming, wild catches (Havfisk and LNWS) and VAP, Sales & Distribution. LSG has a total of 146 fish farming licences distributed as follows: 26 in Troms and Finnmark (Lerøy Aurora), 57 in Nordmøre/ Trøndelag (Lerøy Midt) and 63 in Hordaland (Lerøy Sjøtroll).

In Q3 2018, LSG reported operating revenue of NOK 4,456 million (Q3 2017: NOK 4,373 million) and EBITDA before fair value adjustment related to biological assets of NOK 820 million (Q3 2017: NOK 1,008 million).

The lower earnings were essentially due to the lower harvest volume of salmon and trout.

The company harvested 37,227 tonnes gutted weight of salmon and trout in Q3 2018, compared with 46,024 tonnes in the same quarter of 2017, representing a decrease in harvest volume of 19%.

In recent years, the prices for Atlantic salmon have been impacted by the fact that Norway, the largest producer of Atlantic salmon in the world, has not increased domestic production since 2012. There are several reasons for the lack of growth, including biological challenges, a lack of new licence capacity and challenges in adapting to national political regulations that drive costs. In total, the lack of growth in Norway together with a positive development in demand and the weaker Norwegian krone have resulted in historically high prices for salmon.

Through 2017, the Norwegian fish farming industry showed a positive development in terms of biological performance. This resulted in a higher harvest volume towards the end of 2017 and forecasts of an increase in harvest volume in Norway in 2018. Through 2018, the outlook for the industry's growth in harvest volume for the year has been adjusted downwards. Uncertainty about volumes has contributed to a market with extremely volatile prices, although with less volatility in Q3 than in Q2 2018. The average price in Q3 2018, measured by NSI, was NOK 54.8/kg, compared with NOK 56.4/kg in Q3 2017.

LSG's contract share in the quarter was 25%, and prices realised on contracts in the quarter were higher than in the spot market.

Prices realised by Lerøy Sjøtroll in the quarter were lower because 52% of the harvest volume in the quarter was trout. For LSG as a whole, prices realised for trout in Q3 2018 were NOK 7 per kg lower than for salmon.

There has been a positive development in the Group's release from stock costs. The release from stock costs are lower in Q3 2018 than in both Q2 2018 and Q3 2017, but remain at a level the Group considers unsatisfactory. The biological development in Q3 has been positive, and the Group currently expects falling release from stock costs in Q4.

Lerøy Aurora has a marginally higher cost level in Q3 than the previous quarters of 2018 because of high industry costs. A lower cost level is expected in Q4 2018.

As previously communicated, Lerøy Midt saw a positive development in production through 2017. This development continued into 2018, and this is the fifth quarter in a row with falling release from stock costs.

The year-to-date release from stock costs in Lerøy Sjøtroll are impacted by the final releases of the Spring 17 generation, a generation that has been associated with high costs. With the transition to the Autumn 17 generation, release from stock costs are now expected to fall significantly from Q4 2018 but will remain at a level higher than in the Group's other regions. In the long term, the Group expects to implement measures with the potential to significantly improve biological performance in Lerøy Sjøtroll in the form of lower production costs and better utilisation of the licence volume. Such measures include construction of one of the world's largest and most advanced RAS facilities for post-smolt at Kjærelva in Fitjar municipality. The first delivery of smolt/release from the facility is scheduled to take place in 2019.

The primary segment for Havfisk is wild catches of whitefish. Havfisk has licence rights to harvest just above 10% of the total Norwegian cod quotas in the zone north of 62 degrees latitude, corresponding to more than 30% of the total quota allocated to the trawler fleet. Havfisk also owns several processing plants, which are mainly leased out to Lerøy Norway Seafoods (LNWS) on long-term contracts. Havfisk's trawler licences stipulate an operational obligation for these processing plants.

After delivery of the new trawler, Nordtind, in January 2018, Havfisk had a fleet of 10 trawlers in operation up to May, when Kongsfjord was handed over to a new owner. In April 2018, the Group signed an agreement with Vard for the construction of a new vessel. This will be based on the same design as Nordtind and is a combination trawler (fresh and frozen fish) with unique catch-handling equipment that will provide optimal quality and utilisation of the whole fish. The newbuilding is scheduled for delivery in Q1 2020.

Havfisk's total catch volume in Q3 2018 was 14,282 tonnes, compared with 17,029 tonnes in Q3 2017. Catch volumes for the main species in Q3 2018 were 4,714 tonnes of cod, 3,908 tonnes of saithe and 1,008 tonnes of haddock. The catch distribution in Q3 2017 was 7,662 tonnes of cod, 3,436 tonnes of saithe and 2,464 tonnes of haddock. Moreover, catches of shrimp increased from 165 tonnes in Q3 2017 to 2,703 tonnes in Q3 2018. Compared with Q3 2017, the average price realised for all species increased by 23% in Q3 2018. The prices for cod and haddock increased by 23% and 38% respectively in the quarter, while the price for saithe fell by 5%.

LNWS's primary business is processing wild-caught whitefish. The company has use of 12 processing and purchasing plants in Norway, five of which are leased from Havfisk. The processing of whitefish in Norway has been extremely challenging for many years. The Group has implemented a number of measures within both production and marketing to improve earnings, but these are long-term initiatives and it will take time before significant improvements are evident. As a result of high demand for seafood and lower quotas, the raw material prices increased throughout the first half of 2018, representing a challenge for processing operations.

Overall, the quarter was characterised on the fishing side by lower catch volumes but good price developments, while conditions for the shore-based industry remain challenging. The quarter was impacted by an increase in inventories of NOK 33 million within fishing operations, with Havfisk/ LNWS contributing operating profit of NOK 41 million, compared with NOK 62 million in Q3 2017.

For further information, please refer to LSG's report and presentation for Q3 2018.

Austral Group S.A.A (Peru)

Austral Group S.A.A. (Austral) is involved in fishing, production of fishmeal and oil, and consumer products. Austral holds 6.98% of the total quota for anchoveta in Central/North Peru, and just under 4% of the quota in South Peru. In addition, the company has fishing rights for horse mackerel and mackerel. Anchoveta is used to produce fishmeal and oil, while horse mackerel/mackerel is fished for consumer products. The main fishing seasons for anchoveta in Central/North Peru are from April to July and November to January. Fishmeal and oil are produced in four factories, located in Coishco, Chancay, Pisco and Ilo. The company also produces consumer products in facilities that share premises with the fishmeal and oil factories in Coishco and Pisco.

Operating revenue in Q3 2018 totalled NOK 578 million (Q3 2017: NOK 311 million) and EBITDA NOK 157 million (Q3 2017: NOK -10 million).

The first fishing season in 2018 started on 7 April, with a total quota of 3.3 million tonnes. By the end of the second quarter, the company had caught its entire quota of 231,700 tonnes. Accordingly, the company had a low level of activity in the third quarter. Austral purchased a total of approx. 14,500 tonnes of anchoveta from the coastal fleet for production of fishmeal and oil in the quarter.

The company sold the remainder of the fishmeal and oil production from the first season in Q3 2018, totalling 41,800 tonnes, compared with 26,800 tonnes in Q3 2017. At 30 September 2018, the company had 3,800 tonnes of fishmeal and oil in stock. At 30 September 2017, the company had an inventory of 500 tonnes of fishmeal and oil.

The prices realised for fishmeal and oil have been 14% and 15% higher respectively in Q3 2018 compared with the same quarter last year.

Peru is usually the largest producer of fishmeal and oil in the world. Production volumes in Peru therefore have a direct influence on global prices for fishmeal. From 2014 to 2017, Peru struggled with low quotas and extremely difficult operating conditions, including the weather phenomenon known as "El Niño". In 2017, the institutes monitoring this weather phenomenon signalled that sea temperatures were returning to normal. The recommended quotas for 2017 totalled 4.3 million tonnes, indicating that the researchers assessed the biomass to be in a good state. This was further supported by the quota of 3.3 million tonnes established for the first season of 2018, up from 2.8 million tonnes for the corresponding season in 2017. Operations in the first season of 2018 showed signs of a significant improvement in catch volumes, reinforcing the Group's projections of a return to normal for fisheries in Peru going forward.

Foodcorp Chile S.A (Chile)

Foodcorp Chile S.A. (FC) is involved in fishing, consumer products, and production of fishmeal and oil. From 2018, the regulation of fisheries in Chile has allowed greater flexibility for the fleet to carry out fishing in all the country's regions. This provides a corresponding increase in flexibility for FC, whose quota previously covered only South Chile. FC's quota therefore now corresponds to 8.4% of the horse mackerel quota established for the fleet to which FC's vessels belong. FC also has a quota for sardine/anchoveta.

All FC's shore-based industrial activities are located in the same building in the coastal town of Coronel.

The main season for horse mackerel fishing is from December to July. The main season for sardine/anchoveta fishing is divided into two periods. The first season starts in March and ends in July/August. The second season normally starts in October/November.

In 2018, the company has its own quota (including leased quota) for horse mackerel of 29,400 tonnes. The company has also purchased additional quota of 23,400 tonnes of horse mackerel from third parties to be caught by FC's own vessels. This gives a total annual volume of 52,800 tonnes of horse mackerel for the company.

The main fishing season for horse mackerel is now over, and by the end of September the company had caught a total 47,200 tonnes of horse mackerel (from the total annual volume of 52,800 tonnes). Of this volume, 9,700 tonnes were caught in Q3 2018, compared with a corresponding figure of 15,600 tonnes in Q3 2017. The remainder of the annual volume is expected to be fished in December. Demand for the company's products has been good, and sales of frozen products totalled 9,200 tonnes in the quarter, compared with 10,100 tonnes in Q3 2017.

In Q3 2018, operating revenue was NOK 152 million (Q3 2017: NOK 145 million) and EBITDA was NOK 13 million (Q3 2017: NOK 28 million).

The increase in turnover is explained by higher prices realised in Q3 2018 compared with Q3 2017. The fall in EBITDA can principally be attributed to increased prices for purchases of horse mackerel quota from third parties and an increase in the annual fee for the company's own horse mackerel quota.

Chile has seen a significant decline in horse mackerel fishing since 2008/2009, with joint international fish stock management introduced from 2011. Responsibility for the scheme is assigned to the South Pacific Regional Fisheries Management Organization (SPRFMO). The quotas established in subsequent years have seen only a minor increase, in order to build up the biomass. Thanks to SPRFMO's conservative management, it was able to report in the autumn of 2017 that the biomass had reached a sustainable level, allowing the organisation to recommend an increase of 17% in the quotas for 2018.

The outcome of the auction for horse mackerel executed in December 2017 was finalised in the spring of 2018, and FC has sustained its share of fisheries on payment of an annual fee for the auctioned volume.

Br. Birkeland AS (BrB) og Br. Birkeland Farming AS (BrBF)

A reorganisation was executed at the end of 2017 whereby Br. Birkeland AS' farming operations were demerged and transferred to the new company Br. Birkeland Farming AS, while fishery operations remained in Br. Birkeland AS. As a result, the accounting figures will from now on be classified as farming operations, BrBF and fishery operations, BrB. The comparative figures for corresponding accounting periods in 2017 are therefore proforma. At 30 September 2018, AUSS owned 55.2% of the shares in Br. Birkeland Farming AS and 42.9% of the shares in Br. Birkeland AS.

In Q3 2018, the BrB segment reported operating revenue of NOK 63 million (Q3 2017: NOK 52 million). EBITDA amounted to NOK 16 million (Q3 2017: NOK 4 million).

It has as normal been low season for the pelagic vessels, and the horse mackerel season only started at the end of September. The regulations governing fishing for snow crab were amended in May 2018, including a ban on fishing for snow crab between 15 June and 15 September, the period during which the snow crab sheds its shell. There has consequently been no fishing for snow crab in the third quarter.

In Q3 2018, the BrBF segment reported operating revenue of NOK 67 million (Q3 2017: NOK 29 million). EBITDA before fair value adjustment related to biological assets in Q3 2018 was NOK 12 million (Q3 2017: NOK 17 million). A total of 1,275 tonnes of salmon were harvested in Q3 2018, up from 543 tonnes in Q3 2017.

Pelagia AS

In accordance with IFRS 11, AUSS's consolidated financial statements report the joint venture Pelagia AS as an associate. In the note to the financial statements about the operating segments (Note 4) and in the description of the segment in this report, the financial information comprises 50% of Pelagia AS's total revenue, EBITDA, EBIT and sales volume. This corresponds to AUSS's equity interest in Pelagia AS.

Revenue for the quarter was NOK 622 million (Q3 2017: NOK 675 million) and EBITDA was NOK 27 million (Q3 2017: NOK 63 million).

The third quarter has as normal seen a lower level of activity within both consumer products and the production of fishmeal and oil. Total receipt of raw materials in the Group (100%) for fishmeal/FPC and oil production was approx. 150,000 tonnes in Q3 2018, compared with approx. 156,000 tonnes in Q3 2017. Most of the raw material received for fishmeal and oil production in the third quarter was cuttings. The volume of raw materials received for consumer products in the third quarter was 55,000 tonnes, compared with 60,000 tonnes in Q3 2017. Until the start of the main season for mackerel at the end of September, raw materials in the third quarter mainly comprised North Sea herring.

CASH FLOWS Q3 2018

Cash flow from operating activities for Q3 2018 was NOK 694 million (Q3 2017: NOK 1,207 million). Cash flow from investing activities for Q3 2018 was NOK -394 million (Q3 2017: NOK -413 million). Cash flow from financing activities for Q3 2018 was NOK -685 million (Q3 2017: NOK -232 million). This figure reflects an extraordinary repayment of part of a long-term loan in the quarter. Net change in cash in Q3 2018 for the Group was NOK -385 million (Q3 2017: NOK 561 million).

The Group's cash and cash equivalents at 30 September 2018 totalled NOK 4,462 million, compared with NOK 4,600 million at the end of Q3 2017.

FINANCIAL FACTORS AT 30 SEPTEMBER 2018

The Group reported operating revenue of NOK 17,072 million for the first three quarters of 2018 (30.09.2017: NOK 15,997 million). EBITDA before fair value adjustment related to biological assets in the period was NOK 4,023 million (30.09.2017: NOK 3,929 million).

EBIT before fair value adjustment related to biological assets was NOK 3,323 million (30.09.2017: NOK 3,243 million). The fair value adjustment related to biological assets for the first three quarters was positive at NOK 1,539 million. The corresponding figure for the same period in 2017 was negative at NOK 831 million.

EBIT after fair value adjustment related to biological assets in the period was NOK 4,863 million (30.09.2017: NOK 2,412 million).

Income from associates for the first three quarters totalled NOK 321 million (30.09.2017: NOK 356 million).

The Group's net interest expense in the first three quarters was NOK -221 million (30.09.2017: NOK -216 million).

Profit before tax and fair value adjustment related to biological

assets for the first three quarters of 2018 was NOK 3,429 million, compared with NOK 3,378 million for the same period in 2017.

Profit after tax for the first three quarters totalled NOK 3,875 million (30.09.2017: NOK 2,012 million).

CASH FLOWS AT 30 SEPTEMBER 2018

Cash flow from operating activities was NOK 2,032 million for the first three quarters (30.09.2017: NOK 3,208 million). Tax payments in the period totalled NOK 905 million, compared with NOK 580 million for the same period in 2017. Cash flow from investing activities was NOK -998 million for the first three quarters (30.09.2017: NOK -972 million). As previously reported, the Group has invested and continues to invest substantially in its core business, including a new fishing vessel for Havfisk, new smolt facilities with RAS technology, and new industrial facilities in Norway, the Netherlands and Spain. Cash flow from financing activities was NOK -1,647 million for the first three quarters (30.09. 2017: NOK -1,367 million). The Group has paid a total dividend of NOK 1,081 million, compared with NOK 951 million in the equivalent period in 2017. Net change in cash for the Group in the first three quarters of 2018 was NOK -612 million (30.09.2017: NOK 868 million).

The Group's cash and cash equivalents at 30 September 2018 totalled NOK 4,462 million compared with NOK 4,600 million at 30 September 2017.

STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2018

The Group's statement of financial position at 30 September 2018 showed a total of NOK 37,633 million, compared with NOK 34,892 million at 30 September 2017. The Group's statement of financial position at 31 December 2017 totalled NOK 35,309 million.

The Group is financially sound with book equity at 30 September 2018 of NOK 21,849 million, equivalent to an equity ratio of 58%. At 30 September 2017, book equity was NOK 19,166 million, equivalent to an equity ratio of 54%.

The Group had net interest-bearing debt totalling NOK 4,435 million at 30 September 2018, compared with NOK 4,411 million at 30 September 2017.

The parent company is financially sound, with book equity

of NOK 4,081 million (30.09.2017: NOK 4,049 million) and net interest-bearing debt of NOK 585 million (30.09.2017: NOK 605 million) at 30 September 2018. The parent company and the Group have good access to external financing on competitive terms.

RISKS AND UNCERTAINTIES

The Group's risk exposure is described in the Annual Report 2017. The Group's activities are essentially global and will always be impacted to varying degrees by developments in the global economy. In light of the turmoil in the global economy in recent years, including trade barriers and geopolitical risk, the general consensus is that macroeconomic uncertainty is still greater than what was previously considered normal. Although this situation may have negative effects on the real economy in most markets, we are confident that AUSS's core activities are founded on long-term sustainable assets within interesting segments of the global seafood industry.

The Group is exposed to risk related to the value of the Group's assets. Risk arises mainly as a result of changes in the prices of raw materials and finished products, to the extent that these changes impact the company's competitiveness and earnings potential over time. Operational factors, such as marine biomass, fishing conditions and price trends for the Group's input factors, are other key parameters that have an impact on risk for the Group.

At 30 September 2018, the Group had live fish on its statement of financial position worth more than NOK 6 billion. Biological risk has been and will remain a substantial risk factor in the Group's operations. Assessing and managing biological risk must therefore be a part of the Group's core expertise.

Changes in fishing patterns and quota adjustments mean fluctuations in catch volumes from quarter to quarter and year to year, and hence varying utilisation of the Group's production facilities. The seasonal fluctuations in catch volumes cause similar fluctuations in the quarterly key figures.

After LSG's acquisition of Havfisk and LNWS, the Group has substantial exposure in relation to catches of various species of whitefish according to Norwegian quotas. The Group faces political risk linked to decisions by the authorities, including framework conditions for fish farming and licence terms related to fisheries legislation.

Industrial developments and employment in capital-intensive

activities exposed to global competition such as fish farming, fisheries and industry represent challenges and require a long-term perspective by businesses and politicians at national level. The Group's strategy centres on a long-term perspective, irrespective of framework conditions, to ensure a globally competitive organisation, which can continue to ensure industrial development in the numerous local communities where the Group has operations.

In the approval granted by the Norwegian Ministry of Trade, Industry and Fisheries, LSG's ownership of Havfisk and LNWS is linked to the ownership structure approved when the application was submitted, thereby requiring approval of any changes in ownership not covered by the exemption granted by the Ministry. The nationality requirement in section 5 of the Act relating to the right to participate in fishing must also be met.

The majority of the Group's debt is at floating interest rates, but fixed-rate contracts have been entered into for approx. 26 % of the Group's interest-bearing debt.

The Group is exposed to fluctuations in foreign exchange rates, particularly the EUR, GBP, USD, Chilean peso and Peruvian sol. Measures to reduce this risk in the short term include forward contracts and multi-currency overdraft facilities. Furthermore, parts of the long-term debt are adjusted in relation to earnings in the same currency.

SHAREHOLDERS

The company had 4,794 shareholders at 30 September 2018. The number of shareholders at the start of the period was 4,961.

The share price at the start of Q3 2018 was NOK 97.80 and NOK 112.20 at the end.

A list of the 20 largest shareholders can be found in Note 6 in this report.

MARKET AND OUTLOOK

Production, sale and distribution of salmon, trout and whitefish The development in prices for Atlantic salmon to date in 2018 has been highly volatile. This complicates industrial development and reduces the willingness of market actors to take positions and develop the seafood market. At the same time, the Group has close links with the end market and observes very positive underlying growth in demand for both Atlantic salmon and other seafood.

The Group remains dissatisfied with the 2018 results for Lerøy Sjøtroll but is pleased that things are moving in the right direction. The Group is confident that the initiatives it has implemented will generate substantial improvements in the next few years. The investment in the RAS facility is crucial to the development of Lerøy Sjøtroll. The Group expects the larger, higher-quality smolt produced by the facility to improve productivity when the smolt are released to sea. The current estimate for harvest volume in 2018, including the share of LSG's volume from associates, is 179,000 GWT. The harvest volume may, for numerous reasons including biology and market evaluations, differ from estimates. Again in 2018, the Group does not expect the difference to be major.

The current estimate for harvest volume in 2019, including the share of LSG's volume from associates, is 190,000 GWT.

Developments within whitefish in 2018 have been positive, even though industrial development and processing of fish in Norway remain difficult. This situation is impacted by political framework conditions, but the Group has a clear ambition to increase competitiveness and earnings for whitefish, with the prevailing conditions and by means of improved marketing and improvements to operational efficiency in this part of the organisation also. Work on industrial development of whitefish requires patience, a long-term perspective and considerable investments. Such investments require framework conditions that are predictable, and the Group and its employees fervently hope to be able to carry out such work without any obstacles in the years to come. Developments in fishing operations to date in 2018 have been positive, and the Group maintains its best estimates for 2018 catch volumes at approx. 65,000 tonnes.

On 18 October 2018, the Norwegian-Russian fisheries commission stipulated total quotas for cod, haddock, Greenland halibut and redfish for 2019. The total quotas for cod and haddock are down 6.5% and 15% respectively, while the quota for Greenland halibut is unchanged and that for redfish is up 64%.

Moreover, the advice from the International Council for the Exploration of the Sea (ICES) is that the quota for saithe in the zone north of 62 degrees latitude should be reduced by 13%, while the advice for fishing for saithe in the North Sea implies an increase of 21%.The final quotas per vessel will be stipulated in November/December 2018.

Organic growth and a series of acquisitions have afforded LSG a position as the world's second-largest producer of salmon and trout and Norway's largest supplier of whitefish. In addition to fish produced from its own licences and catches covered by its own quotas, the Group also has substantial trading activities with other suppliers. LSG plays an active role in developing the value chain for seafood and is gaining an increasingly important position as a substantial international seafood supplier.

Thanks to LSG's well-established integrated value chain for red fish, there is significant potential for increased value creation by means of further developing the market for whitefish, including strengthening the Group's position as a supplier of fresh/"refreshed" seafood with a full range of seafood products. LSG's many years of investing in vertical integration, building alliances, developing high-quality products, entering new markets, quality-assuring its value chain and building its brand will enable it to continue to create value going forward. The Group will continue its work to deliver sustainable value creation by focusing on strategic business development and operational improvements. This work will generate growth and, based on customer requirements, ensure continuity of supply, quality and cost efficiency, paving the way for increased profitability. Improving operational efficiency is an ongoing process that will further improve the Group's competitiveness on national and global markets.

Fishmeal and fish oil

The quotas for the first season of 2018 in Peru were 3.3 million tonnes, up from 2.8 million tonnes for the same season of 2017. A high quota in Peru led to fishmeal prices falling in the second quarter, before rising slightly and stabilising. Peru has carried out its customary surveys ahead of the second fishing season, but as yet there are no details of the size of the quota or when the second fishing season will begin. In 2018, the European quotas for catches of fish species primarily used for production of fishmeal and oil in Europe are on par with the quotas in 2017. The quotas recommended by ICES for 2019 are down on 2018. Realised prices for fishmeal FOB Peru (super prime) are currently USD 1,590, while CIF Hamburg prices for fishmeal (standard 64%/65%) are USD 1,485.

Consumer products (pelagic)

The Group's production of consumer products takes place in Europe and South America. In Europe, the season for herring and capelin is usually from January to April and the season for North Sea herring from May onwards. The main season for mackerel fishing normally starts in September and continues throughout the autumn. The remaining quotas for Norwegian spring-spawning herring are also caught during the same period. The first half of the year is the season for horse mackerel in South America. The ban on imports to Russia and import quotas and currency restrictions on sales to Nigeria have made marketing much more complex in recent years. However, the market situation in Nigeria improved slightly in 2017, and this market has received high volumes of frozen fish in 2018. We note that the Group's products are faring well in competition with alternative sources of protein. The quotas recommended by ICES for the North Atlantic for 2019 are down on 2018. The quotas recommended by SPRFMO for horse mackerel in the South Pacific in 2019 are up approx. 3% on the quota for 2018.

The Group

The Group is financially sound, has shown positive development and is currently well positioned in several parts of the global seafood industry. The Group's strategy going forward is to continue to grow and further develop within its current operating segments. The Group has and shall continue to have the financial flexibility to support its strategy of further organic growth, carry out strategic acquisitions and sustain the company's dividend policy.

The Group's strong position within the global seafood industry gives grounds for a positive outlook for the Group's future development.

Storebø, November 7th, 2018 The Board of Directors of Austevoll Seafood ASA

Chairman of the Board Helge Singelstad

Board member Lill Maren Møgster Deputy Chairman of the Board Oddvar Skjegstad

Board member Board member Eirik Drønen Melingen Helge Møgster

Board member Board member Hege Charlotte Bakken Siren M. Grønhaug

CEO Arne Møgster

INCOME STATEMENT (unaudited)

(audited)
All figures in NOK 1.000 Note Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Operating revenue 4 5 317 212 4 902 771 17 071 741 15 996 920 20 798 933
Raw material and consumables used 2 754 060 2 437 894 8 515 026 7 984 934 10 489 050
Salaries and personnel expenses 790 195 707 222 2 344 949 2 137 936 2 905 356
Other operating expenses 764 911 706 545 2 188 786 1 945 476 2 657 278
EBITDA before fair value adjustments * 1 008 046 1 051 110 4 022 980 3 928 574 4 747 249
Depreciation and amortisation 237 842 229 790 701 098 688 209 919 429
Impairment -516 -714 -1 533 -2 526 665
EBIT before fair value adjustment * 770 720 822 034 3 323 415 3 242 891 3 827 155
Fair value adjustment related to biological asset 71 834 -511 708 1 539 420 -830 572 -1 832 499
Operating profit 842 554 310 326 4 862 835 2 412 319 1 994 656
Income from associated companies 5 41 982 89 357 320 881 355 695 498 790
Net interest expenses -75 533 -73 098 -220 794 -215 845 -282 873
Net other financial items (incl. agio/disagio) -11 156 2 227 -17 479 9 130 -10 558
Profit before tax and fair value adj.* 757 904 873 360 3 429 071 3 378 474 4 029 098
Profit before tax 797 847 328 812 4 945 443 2 561 299 2 200 015
Income tax expenses -189 952 -58 389 -1 070 737 -549 271 -369 059
Net profit 607 895 270 423 3 874 706 2 012 028 1 830 956
Profit to non-controlling interest 304 690 99 215 1 873 342 924 381 821 489
Profit to controlling interests 303 205 171 208 2 001 364 1 087 647 1 009 467
Earnings per share (EPS) * 1,44 1,95 6,88 6,99 8,62
Earnings per share (EPS) 1,50 0,85 9,92 5,39 5,00
Diluted EPS 1,50 0,85 9,92 5,39 5,00

*) related to biological assets (alternative performance measure)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (unaudited)

All figures in NOK 1.000 Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 (audited)
2017
Net earnings in the period 607 895 270 423 3 874 706 2 012 028 1 830 956
Other comprehensive income
Currency translation differences -28 452 -172 438 -138 722 -128 284 51 737
Other comprehensive income from associated companies 21 64 -5 322 -2 663 -2 772
Cash flow hedges 9 607 9 476 33 118 14 914 24 609
Change in value available for sale financial assets
Others incl. tax effect -5 809 7 033 -5 150 10 415 8 110
Total other comprehensive income -24 633 -155 865 -116 076 -105 618 81 684
Comprehensive income in the period 583 262 114 558 3 758 630 1 906 410 1 912 640
Allocated to;
Minority interests 304 087 78 293 1 827 577 925 736 867 706
Majority interests 279 175 36 265 1 931 053 980 674 1 044 934

(unaudited) STATEMENT OF FINANCIAL POSITION

(audited)
All figures in NOK 1.000 Note 30.09.2018 30.09.2017 31.12.2017
Assets
Intangible assets 11 470 832 11 635 381 11 697 603
Vessels 2 145 221 1 941 556 1 953 354
Property, plant and equipment 6 391 528 5 151 017 5 609 737
Investments in associated companies 5 1 977 767 1 900 749 2 073 728
Investments in other shares 34 278 32 717 31 341
Other long-term receivables 147 033 165 807 200 505
Total non-current assets 22 166 659 20 827 227 21 566 268
Inventories 3 8 034 082 6 694 202 5 877 772
Accounts receivable 2 190 682 2 007 586 2 070 947
Other current receivables 779 648 762 514 719 362
Cash and cash equivalents 4 461 674 4 600 138 5 074 875
Total current assets 15 466 086 14 064 440 13 742 956
Total assets 37 632 745 34 891 667 35 309 224
Equity and liabilities
Share capital 6 101 359 101 359 101 359
Own shares -18 312 -18 312 -18 312
Share premium 3 713 549 3 713 549 3 713 549
Retained earnings and other reserves 7 347 878 5 925 609 5 989 871
Non-controlling interests 10 704 585 9 443 301 9 385 272
Total equity 21 849 058 19 165 506 19 171 739
Deferred tax liabilities 3 797 662 3 849 081 3 432 079
Pensions and other obligations 71 332 120 667 109 935
Borrowings 6 971 734 7 945 627 7 332 247
Other long-term liabilities 27 349 27 549 28 607
Total non-current liabilities 10 868 077 11 942 924 10 902 868
Short term borrowings 1 346 860 886 983 1 402 565
Overdraft facilities 551 129 151 473 448 988
Account payable 1 487 073 1 198 949 1 456 729
Other current liabilities 1 530 548 1 545 832 1 926 335
Total current liabilities 4 915 610 3 783 237 5 234 617
Total liabilities 15 783 687 15 726 161 16 137 485
Total equity and liabilities 37 632 745 34 891 667 35 309 224
NIBD 4 435 398 4 411 494 4 137 532
Equity ratio 58 % 54 % 54 %

(unaudited) CONDENSED STATEMENT OF CHANGES IN EQUITY

Equity at period end 21 849 058 19 165 506 19 171 739
Total changes in equity in the period 2 677 319 952 686 958 919
Other - - -
Transactions with non-controlling interest - -1 015 -1 013
Dividends -1 081 311 -952 709 -952 708
Comprehensive income in the period 3 758 630 1 906 410 1 912 640
Equity at period start 19 171 739 18 212 820 18 212 820
All figures in NOK 1.000 30.09.2018 30.09.2017 31.12.2017
(audited) (audited)

CASH FLOW STATEMENT (unaudited)

All figures in NOK 1.000 Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 (audited)
2017
Cash flow from operating activities
Profit before income taxes 797 848 328 812 4 945 444 2 561 299 2 200 015
Fair value adjustment of biological assets -71 834 511 708 -1 539 420 830 572 1 832 499
Taxes paid in the period -16 462 -13 133 -905 173 -580 456 -599 617
Depreciation and amortisation 237 842 229 790 701 098 688 209 919 429
Impairments -516 -714 -1 533 -2 526 665
Associated companies - net -41 982 -89 357 -320 881 -355 695 -498 790
Interest expense 87 567 85 017 257 971 248 540 332 833
Interest income -12 036 -11 919 -37 178 -32 695 -49 960
Change in inventories -380 118 134 978 -593 630 353 907 168 415
Change in receivables 170 738 248 586 -142 898 304 601 284 690
Change in payables 43 950 -85 441 -2 138 -270 618 -42 685
Other operating cash flow incl currency exchange -120 891 -131 482 -329 516 -537 581 -327 003
Net cash flow from operating activities 694 106 1 206 845 2 032 146 3 207 557 4 220 491
Cash flow from investing activities
Purchase of intangible and fixed assets -481 245 -456 493 -1 856 147 -1 190 602 -1 840 471
Purchase of shares and equity investments -7 052 - -134 130 -77 170 -82 181
Proceeds from sale of fixed assets/equity investments -532 8 243 483 636 74 873 132 913
Cash inflow from business combinations -953 - 26 388 - 1 194
Dividend received 80 000 26 515 392 200 236 515 264 015
Interest income 12 036 11 919 37 178 32 695 49 960
Other investing activities - net 3 715 -3 150 53 260 -48 452 -81 487
Net cash flow from investing activities -394 031 -412 966 -997 615 -972 141 -1 556 057
Cash flow from financing activities
Proceeds from new long term debt 176 870 187 561 1 268 002 1 488 137 1 584 788
Repayment of long term debt -1 041 574 -201 739 -1 688 232 -1 012 703 -1 245 904
Change in short term debt 261 013 -133 238 110 506 -628 282 -326 873
Interest paid -81 027 -85 017 -252 446 -263 655 -348 031
Dividends paid - -1 081 324 -950 584 -950 584
Other finance cash flow - net -11 - -3 353 -39 427
Net cash flow from financing activities -684 729 -232 433 -1 646 847 -1 367 087 -1 326 031
Net change in cash and cash equivalents -384 654 561 446 -612 316 868 329 1 338 403
Cash, and cash equivalents at start of period 4 846 182 4 047 315 5 074 875 3 745 198 3 745 198
Exchange gains/losses (-) 146 -8 861 -885 -13 627 -8 726
Cash and cash equivalents at period end 4 461 674 4 599 900 4 461 674 4 599 900 5 074 875

NOTE 1 ACCOUNTING POLICIES

This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the related standard for interim financial reporting (IAS 34). The interim financial statements, including historical comparative amounts, are based on current IFRS standards and interpretations. Changes in the standards and interpretations may result in changes to the result. The company has implemented IFRS 9 Financial instruments and IFRS 15 Revenue from Contracts with Customers. Implementation of these standards has not required significant changes to the company's accounting policies. Moreover, the interim reports are prepared according to the same accounting policies as for the most recent financial statements, but do not contain all the information and notes required for an annual report. This report must therefore be read in the context of the company's most recent annual report (2017).

NOTE 2 RELATED PARTY TRANSACTIONS

There were related party transactions in Q3 2018. Related party transactions take place on market terms, and the relevant types of transactions are described in more detail in the Annual Report 2017.

NOTE 3 BIOLOGICAL ASSETS

The Group recognises and measures biological assets at fair value according to IAS 41 and IFRS 13. For salmon and trout, including parent fish, a present value model is applied to estimate fair value. For roe, fry, smolt and cleaner fish, historical cost is assumed to be the best estimate of fair value. The value of fish in the sea is estimated as a function of the estimated biomass at the time of release from stock, multiplied by the estimated sales price. For fish not ready for harvest, a deduction is made to cover estimated residual costs to grow the fish to harvest weight. The cash flow is discounted monthly by a discount rate. The discount rate comprises three main components: (1) the risk of incidents that have an effect on cash flow, (2) hypothetical licence lease and (3) the time value of money.

Estimated biomass (volume) is based on the actual number of individuals in the sea on the date of the statement of financial position, adjusted to cover projected mortality up to harvest time and multiplied by the estimated harvest weight per individual at harvest time. The measurement unit is the individual fish. However, for practical reasons, these estimates are carried out per locality. The live weight of fish in the sea is translated to gutted weight in order to arrive at the same measurement unit as for pricing.

Pricing is based on the Fish Pool forward prices. The forward price for the month in which the fish is expected to be harvested is applied in order to estimate cash flow. The price stipulated by Fish Pool is adjusted to take into account export costs and clearing costs and represents the reference price. This price is then adjusted to account for estimated harvesting cost (well boat, slaughter and boxing) and transport to Oslo. Adjustments are also made for any projected differences in size and quality. The adjustments to the reference price are made per locality. Joint regional parameters are applied, unless factors specific to an individual locality require otherwise.

Valuation and classification are based on the principle of highest and best use according to IFRS 13. The actual market price per kilo may vary in relation to fish weight. When estimating fair value, the optimal harvest weight, i.e. the weight when the fish is ready for harvest, is defined as the live weight that results in a gutted weight of 4 kg. This corresponds to a live weight of 4.8 kg. The optimal harvest weight may, however, be lowered slightly if required by factors at an individual locality (biological challenges etc.). In terms of valuation, only fish that have achieved a live weight greater than 4.8 kg are classified as ready for harvest.

The Group enters into contracts related to future deliveries of salmon and trout. As biological assets are recognised at fair value, the fair value adjustment of the biological assets will be included in the estimated expenses required to fulfil the contract. This implies that the Group may experience loss-making (onerous) contracts according to IAS 37 even if the contract price for physical delivery contracts is higher than the actual production cost for the products. In such a scenario, a provision is made for the estimated negative value, classified in the financial statements as other current liabilities.

NOTE 3 BIOLOGICAL ASSETS (cont.)

The fair value adjustment related to biological assets recognised in the income statement for the period comprises (1) fair value adjustment related to biological assets, (2) change in fair value (provision) related to onerous contracts and (3) change in unrealised gain/loss related to financial sale and purchase contracts (derivatives) for fish in Fish Pool. Fish Pool contracts are treated as financial instruments on the statement of financial position, where unrealised gain is recognised as other current receivables and unrealised loss as other current liabilities.

Conversion to live weight:

The figures for harvested volume and net growth in the tables below have been estimated on the basis of gutted weight (GWT) and converted to live weight (LWT). The gutting loss ratio for salmon and trout applied in this conversion is 16%. The table for Lerøy Seafood Group ASA includes salmon and trout. The table for Br. Birkeland Farming AS only includes salmon.

LWT = live weight measured in tonnes

GWT = gutted weight measured in tonnes

Lerøy Seafood Group ASA

FAIR VALUE ADJUSTMENTS RELATED TO BIOLOGICAL ASSETS

Fair value adjustments over profit and loss Q3 2018 Q3 2017 YTD 2018 YTD 2017 2017
Change FV adj. of biolocigal assets 77 340 -554 269 1 540 892 -990 131 -1 953 500
Change in FV of onerous contracts -25 596 45 854 -69 290 249 269 278 926
Change in FV of fishpool contracts 1 036 -6 202 11 655 -23 443 -41 735
FV adj. related to biological assets 52 780 -514 617 1 483 257 -764 305 -1 716 309

BALANCE SHEET ITEMS RELATED TO BIOLOGICAL ASSETS

Positive amounts are assets and negative amounts are liabilities

Carrying amount on biological assets 30.09.2018 30.09.2017 31.12.2017
Cost on stock for fish in sea 3 775 460 3 445 491 3 466 270
Cost on stock for fry, brood, smolt and cleaning fish 208 425 156 261 244 227
Total cost on stock for biological assets * 3 983 886 3 601 752 3 710 497
FV adj. on fish in sea 2 288 490 1 710 967 747 598
FV adj. on fry, brood, smolt and cleaning fish 0 0 0
Total FV adj. on biological assets 2 288 490 1 710 967 747 598
FV on fish in sea 6 063 950 5 156 458 4 213 868
FV on fry, brood, smolt and cleaning fish 208 425 156 261 244 227
Carrying amount of biological assets 6 272 376 5 312 719 4 458 095
Carrying amount on onerous contracts (liability)
Carrying amount of onerous contracts -74 745 -35 112 -5 455
Carrying amount on fishpool contracts
Carrying amount of fishpool contracts -4 832 1 964 -16 988
* Cost on stock is historic costs after expensed mortality
HARVESTED VOLUME:
Volume in gutted weight (GWT) Q3 2018 Q3 2017 YTD 2018 YTD 2017 2017
Salmon 31 443 39 748 96 056 99 989 134 673

Trout 5 784 6 276 16 569 15 498 23 094 Total harvested volume 37 227 46 024 112 625 115 487 157 768

NOTE 3 BIOLOGICAL ASSETS (cont.)

Lerøy Seafood Group ASA (cont.)

VOLUME

Volume of fish in sea (LWT) Q3 2018 Q3 2017 YTD 2018 YTD 2017 31.12.2017
Volume at beginning of period 90 697 96 258 112 489 108 413 108 413
Net growht during the period 66 245 66 973 134 212 137 513 191 895
Harvested volume during the period -44 318 -54 790 -134 077 -137 485 -187 819
Volume at end of period (LWT) 112 624 108 441 112 624 108 441 112 489
Specification of fish in sea (LWT) 30.09.2018 30.09.2017 31.12.2017
Salmon 93 690 91 700 96 450
Trout 18 934 16 741 16 039
Total 112 624 108 441 112 489
Fish > 4,8 kg (live weight) 12 941 8 133 14 396

Br. Birkeland AS

FAIR VALUE ADJUSTMENTS RELATED TO BIOLOGICAL ASSETS

Fair value adjustment over profit and loss Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Change FV adj. biological assets 19 054 2 909 56 163 -66 267 -116 190
FV adj. related to biological assets 19 054 2 909 56 163 -66 267 -116 190

BALANCE SHEET ITEMS RELATED TO BIOLOGICAL ASSETS

Positive amounts are assets and negative amounts are liabilities

Carrying amount of biological assets YTD Q3 2018 YTD Q3 2017 2017
Fish in sea at historic cost 212 146 157 869 187 318
Fair value adjustment fish in sea 100 043 93 803 43 880
Fair value fish in sea 312 189 251 672 231 198
Fry, brood and smolt - -
Carrying amount of biological assets 312 189 251 672 231 198

HARVESTED VOLUME

Harvested volume in gutted weight (GWT) Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Total volume 1 275 543 4 084 5 345 6 543
- Salmon 1 275 543 4 084 5 345 6 543

VOLUME

Volume of fish in sea (LWT) Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Volume at beginning of period 3 806 3 007 5 070 5 688 5 688
Net growth during the period 2 867 2 026 5 010 5 228 7 404
Harvested volume during the period -1 539 -686 -4 840 -6 569 -8 022
Volume at end of period (LWT) 5 134 4 347 5 240 4 347 5 070
Fish > 4,8 kg (live weight) - - - - 2 935

NOTE 4 SEGMENTS

All figures in
NOK 1.000
Lerøy
Seafood
Group
ASA
Austral
Group
S.A.A
Foodcorp
Chile
S.A
Br.
Birkeland
AS**
Br.
Birkeland
Farming
AS**
Other/
elimina
tions
Total
Group
Pelagia AS
(50% of
figures and
volumes)
Total
Group
incl.
Pelagia
AS (50%)
Q3 2018
Operating revenue 4 455 832 577 724 151 519 62 853 66 724 2 560 5 317 212 621 921 5 939 133
EBITDA* 819 662 157 150 12 840 15 666 11 893 -9 165 1 008 046 27 316 1 035 362
EBITDA % 18 % 27 % 8 % 25 % 18 % 19 % 4 % 17 %
EBIT* 660 132 114 576 5 263 -1 713 6 953 -14 491 770 720 1 849 772 569
Volumes sold:
Salmon (GWT tonnes) 37 227 1 275 38 502 38 502
Fishmeal/oil/FPC (tonnes) 41 807 3 366 45 173 26 600 71 773
Frozen/fresh fish (tonnes) 1 316 9 201 10 517 22 300 32 817
Q3 2017
Operating revenue 4 373 199 311 125 144 976 52 038 29 462 -8 029 4 902 771 675 173 5 577 944
EBITDA* 1 007 515 -9 730 27 761 4 152 16 540 4 872 1 051 110 62 799 1 113 909
EBITDA % 23 % 19 % 8 % 56 % 21 % 9 % 20 %
EBIT* 861 310 -54 148 19 059 -14 996 11 227 -418 822 034 39 985 862 019
Volumes sold:
Salmon (GWT tonnes) 46 024 543 46 567 46 567
Fishmeal/oil/FPC (tonnes) 26 774 4 681 31 455 33 800 65 255
Frozen fish (tonnes) 10 122 10 122 20 950 31 072

* Before fair value adjustments related to biological assets

** Br. Birkeland AS was demerged October 5th 2017 and Q2 2017 and H1 2017 figures are proforma figures

NOTE 4 SEGMENTS (cont.)

Total
Lerøy Br. Pelagia AS Group
Seafood Austral Foodcorp Br. Birkeland Other/ (50% of incl.
All figures in Group Group Chile Birkeland Farming elimina Total figures and Pelagia
NOK 1.000 ASA S.A.A S.A AS** AS** tions Group volumes) AS (50%)
YTD Q3 2018
Operating revenue 14 533 105 1 475 875 529 368 333 337 233 035 -32 979 17 071 741 1 991 434 19 063 175
EBITDA* 3 094 522 542 156 121 225 197 899 75 285 -8 107 4 022 980 215 821 4 238 801
EBITDA % 21 % 37 % 23 % 59 % 32 % 24 % 11 % 22 %
EBIT* 2 620 325 421 078 99 059 145 984 60 597 -23 628 3 323 415 139 801 3 463 216
Volumes sold:
Salmon (GWT tonnes) 112 625 4 084 116 709 116 709
Fishmeal/oil/FPC (tonnes) 102 854 11 314 114 168 64 700 178 868
Frozen/fresh fish (tonnes) 6 487 36 736 43 223 86 700 129 923
YTD Q3 2017
Operating revenue 14 065 223 1 234 454 405 899 163 008 347 023 -218 687 15 996 920 1 957 396 17 954 316
EBITDA* 3 378 665 258 906 108 622 12 294 156 753 13 334 3 928 574 191 268 4 119 842
EBITDA % 24 % 21 % 27 % 8 % 45 % 25 % 10 % 23 %
EBIT* 2 939 373 121 315 81 115 -38 329 141 454 -2 037 3 242 891 131 954 3 374 845
Volumes sold:
Salmon (GWT tonnes) 115 487 5 345 120 832 120 832
Fishmeal/oil/FPC (tonnes) 94 425 13 205 107 630 74 700 182 330
Frozen fish (tonnes) 8 136 23 821 31 957 76 600 108 557
2017
Operating revenue 18 619 588 1 250 406 507 877 247 942 407 556 -234 436 20 798 933 3 061 055 23 859 988
EBITDA* 4 300 013 136 637 79 056 46 004 173 471 12 067 4 747 248 306 965 5 054 213
EBITDA % 23 % 11 % 16 % 19 % 23 % 10 % 21 %
EBIT* 3 716 748 -51 328 46 076 -28 601 152 777 -8 518 3 827 154 242 411 4 069 565
Volumes sold:
Salmon (GWT tonnes) 157 768 6 543 164 311 164 311
Fishmeal/oil/FPC (tonnes) 94 938 17 712 112 650 94 100 206 750
Frozen fish (tonnes) 8 154 27 661 35 815 160 550 196 365

* Before fair value adjustments related to biological assets

** Br. Birkeland AS was demerged October 5th 2017 and Q2 2017 and H1 2017 figures are proforma figures

NOTE 5 ASSOCIATES

Q3 2018 Q3 2017 YTD Q3 2018 YTD Q3 2017 2017
Norskott Havbruk AS* a) 50.0% 29 948 39 905 182 332 232 954 270 660
Pelagia AS b) 50.0% -160 41 494 114 024 97 838 193 283
Others 12 193 7 955 24 524 24 901 34 846
Total income from ass.companies 41 981 89 354 320 880 355 693 498 789
* Fair value adjustment biological assets -31 892 -32 843 -23 049 13 395 3 415
Income from associates before FV adj. 73 873 122 197 343 929 342 298 495 374
Investment in associates:
Norskott Havbruk AS 687 348 743 522 777 933
Pelagia AS 1 000 381 936 364 1 060 536
Others 290 037 220 861 235 259
Total investment 1 977 766 1 900 747 2 073 728
Dividend received
Norskott Havbruk AS 242 200 133 515 161 015
Pelagia AS 150 000 100 000 100 000
Others 3 000 3 000
Total Dividend received from associates 392 200 236 515 264 015

a) Lerøy Seafood Group ASA owns 50% of Norskott Havbruk AS

b) Austevoll Seafood ASA owns 50% of Pelagia AS

NOTE 6 LIST OF THE 20 LARGEST SHAREHOLDERS AT 30/09/2018

Investor Number of shares % of top 20 % of total
LACO AS 112 605 876 75.66 55.55
STATE STREET BANK AND TRUST COMP 5 287 194 3.55 2.61
FOLKETRYGDFONDET 4 899 739 3.29 2.42
STATE STREET BANK AND TRUST COMP 3 631 705 2.44 1.79
STATE STREET BANK AND TRUST COMP 2 642 987 1.78 1.30
PARETO AKSJE NORGE VERDIPAPIRFOND 1 863 073 1.25 0.92
MITSUI AND CO., LTD. 1 782 236 1.20 0.88
OM HOLDING AS 1 745 889 1.17 0.86
DANSKE INVEST NORSKE INSTIT. II. 1 602 129 1.08 0.79
J.P. MORGAN BANK LUXEMBOURG S.A. 1 586 048 1.07 0.78
THE NORTHERN TRUST COMP, LONDON BR 1 460 789 0.98 0.72
STATE STREET BANK AND TRUST COMP 1 319 752 0.89 0.65
JPMORGAN CHASE BANK, N.A., LONDON 1 315 877 0.88 0.65
JPMORGAN CHASE BANK, N.A., LONDON 1 295 955 0.87 0.64
EUROCLEAR BANK S.A./N.V. 1 161 143 0.78 0.57
STATE STREET BANK AND TRUST COMP 1 038 599 0.70 0.51
CLEARSTREAM BANKING S.A. 940 063 0.63 0.46
PARETO AS 921 000 0.62 0.45
AUSTEVOLL SEAFOOD ASA 893 300 0.60 0.44
GOLDMAN SACHS & CO. LLC 835 252 0.56 0.41
Total number owned by top 20 148 828 606 100 % 73.42 %
Total number of shares 202 717 374 100 %

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