Mowi ASA

Investor Presentation • Aug 22, 2018

Marine Harvest Q2 2018 Presentation

22 August 2018

Forward looking statements

This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest's contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capacity, expectations of the capacity of our fish feed plants, trends in the seafood industry, including industry supply outlook, exchange rate and interest rate hedging policies and fluctuations, dividend policy and guidance, asset base investments, capital expenditures and net working capital guidance, NIBD target, cash flow guidance and financing update, guidance on financial commitments and cost of debt and various other matters concerning Marine Harvest's business and results. These statements speak of Marine Harvest's plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties.

Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today.

Highlights

• Operational EBIT of EUR 175 million in the quarter
• High prices in all markets on strong demand
• Record high Q2 results in Norway and Chile on improved costs and volumes yearover-year
• Issuance of EUR 200 million senior unsecured bond (5-year at EURIBOR + 2.15%)
• Reduced volume guidance of 28,000 GWT (excluding Northern Harvest) on biological issues, and low growth in Canada and southern part of Norway
• Quarterly dividend of NOK 2.60 per share to be paid in Q3-2018

Key financials

Marine Harvest Group - main figures Unaudited EUR million	Q2 2018	Q2 2017	YTD Q2 2018	YTD Q2 2017	2017
Operational revenue and other income	888.4	884.1	1,750.5	1,776.1	3,653.8
Operational EBIT 1)	175.2	197.9	332.7	417.1	792.1
EBIT	255.0	176.1	524.6	263.8	484.9
Cash flow from operations	112.8	162.3	304.3	410.1	632.4
Net interest-bearing debt (NIBD)	950.7	550.9	950.7	550.9	831.9
Basic EPS (EUR)	0.35	0.14	0.72	0.62	0.97
Underlying EPS (EUR) 1)	0.26	0.31	0.49	0.67	1.23
Net cash flow per share (EUR) 1)	0.12	0.24	0.33	0.62	0.74
ROCE 1)	25.7%	31.2 %	25.2 %	32.4 %	26.7 %
Adjusted equity ratio 1)	49.7%	58.1 %	49.7 %	58.1 %	51.7 %
Harvest volume (GWT)	78 346	78 612	159 558	162 380	370 346
Operational EBIT - EUR per kg1) - Total	2.24	2.52	2.09	2.57	2.15
Norway	2.56	2.50	2.41	2.48	2.20
Scotland	2.38	3.10	2.12	3.11	2.55
Canada	0.98	2.34	1.03	2.87	2.06
Chile	1.86	1.46	1.58	1.64	1.30
Ireland	2.21	3.35	3.38	3.07	3.07
Faroes	2.92	na	1.93	4.14	3.17

Salmon prices – weekly reference prices

Reference price Norway EUR (NASDAQ average superior Oslo, GWT/kg)

Reference price Chile USD (Urner Barry average D-trim 3-4 lbs FOB Miami)

Reference price Canada USD (Urner Barry average superior GWE 10-12 lbs FOB Seattle)

EUR per kg (Oslo)

Price achievement (1), contract & superior share

Q2 2017 Q2 2018

Contract	48	69	0	29
share	%	%	%	%
Superior	89	95	87	86
share	%	%	%	%

1) From the first quarter 2018, we have changed our reporting of price achievement to no longer include margins from Consumer Products and Feed. Comparison figures are re-presented accordingly ⁶

Operational EBIT comparison

Norway

SALMON OF NORWEGIAN ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	126.7	98.4
EBIT	200.9	84.3
Harvest volume (GWT)	49 491	39 372
Operational EBIT per kg (EUR)	2.56	2.50
- of which Feed	0.05	0.05
- of which Markets	0.09	0.12
- of which Consumer Products	0.09	0.34
Price achievement/reference price	91%	91%
Contract share	48%	64%
Superior share	89%	91%

• Record high Q2 results on increased volume and decreased costs
• Strong spot prices. Contract prices reduced price achievement
• Sea lice and connected biological issues
• Reduced harvest guidance by 14,500 GWT (~80% in Region South) for second half of 2018
• Costs expected to decrease in the third quarter (compared to Q2)

Norway: Sales contract portfolio

Note: Marine Harvest Norway's fixed price/fixed volume contracts with third party customers and MH's processing entities. MH's processing entities cover a large proportion of their sales exposure through third party end-product contracts.

Norway: Operational EBIT/kg per region

Scotland

SALMON OF SCOTTISH ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	21.3	57.5
EBIT	30.8	51.8
Harvest volume (GWT)	8 958	18 515
Operational EBIT per kg (EUR)	2.38	3.10
- of which MH Markets	0.21	0.25
- of which MH Consumer Products	0.53	0.17
Price achievement/reference price	104%	97%
Contract share	69%	39%
Superior share	95%	97%

• Good financial result driven by high prices. Positive contributions from contracts
• Operations impacted by a challenging biology
• Increased costs in the second quarter
• Reduced harvest volume by 5,000 GWT for second half of 2018

Canada

SALMON OF CANADIAN ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	7.8	21.9
EBIT	-4.8	17.1
Harvest volume (GWT)	8 031	9 350
Operational EBIT per kg (EUR)	0.98	2.34
- of which MH Markets	0.08	0.18
- of which MH Consumer Products	0.00	0.00
Price achievement/reference price	96%	99%
Contract share	0%	0%
Superior share	87%	90%

• Good prices in a challenging quarter with biological headwinds
• Many small fish harvested which impacted price achievement adversely
• High mortality and reduced growth impacted costs negatively
• Reduced harvest volumes by 6,500 GWT for the second half of 2018 (excl Northern Harvest)
• Acquisition of Northern Harvest (East Canada) completed in July
• Estimated harvest volumes of 8,000 GWT in the second half of 2018

Chile

SALMON OF CHILEAN ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	18.3	11.3
EBIT	24.7	15.6
Harvest volume (GWT)	9 849	7 741
Operational EBIT per kg (EUR)	1.86	1.46
- of which MH Markets	0.09	-0.05
- of which MH Consumer Products	0.32	0.22
Price achievement/reference price	91%	97%
Contract share	29%	28%
Superior share	86%	86%

• Improved results on higher realised prices and reduced biological costs
• Positive scale effects
• Costs expected to increase in the third quarter (compared to Q2)
• Unfortunate escape incident in July
• Negative operational EBIT impact excluding margin of USD 3.5 million in the second half
• Recent consolidation announcements supportive for the long-term development

Ireland and Faroes

SALMON OF IRISH ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	2.7	12.2
EBIT	0.7	8.0
Harvest volume (GWT)	1 239	3 634
Operational EBIT per kg (EUR)	2.21	3.35
- of which MH Markets	0.00	0.00
- of which MH Consumer Products	-0.08	0.12
Price achievement/reference price	na	na
Contract share	86%	79%
Superior share	92%	91%
Strong market conditions for organic salmon -
Increased harvesting ahead -

SALMON OF FAROESE ORIGIN
EUR million	Q2 2018	Q2 2017
Operational EBIT	2 3	-0 4
EBIT	4 0	2 7
(GWT) Harvest volume	778	0
Operational EBIT kg (EUR) per	2 92	0 00
- of which MH Markets	0 34	0 00
- of which MH Consumer Products	0 00	0 00
achievement/reference Price price	113%	na
Contract share	0%	0%
Superior share	94%	na

• Results in Marine Harvest Ireland impacted by reduced volumes
• Strong market conditions for organic salmon
• Positive results from Marine Harvest Faroes on low harvesting

Consumer Products (1)

CONSUMER PRODUCTS
EUR million	Q2 2018	Q2 2017
Operating revenues	510 7	488 3
Operational EBIT	13 1	19 2
Operational EBIT %	2 6%	3 9%
EBIT	13 1	19 0
Volume sold (tonnes prod weight)	39 372	36 644

• Good volume and revenue growth
• Strong growth in Chilled segment
• Earnings negatively impacted by volatile raw material prices and phasing of Easter season
• Strong consumption growth of salmon globally
• Value of salmon consumed increased in all main markets
• Major fire at the Kritsen plant in July
• Fully insured, expect limited cash effect

Sweet & Smokey Atlantic Salmon, MH USA

Irish organic salmon prepacked

Feed

FEED
EUR million	Q2 2018	Q2 2017
Operating revenues	88 0	65 0
Operational EBIT	0 8	1 8
Operational EBIT %	0 9%	2 8%
EBIT	0 7	-3 8
Feed sold volume	70 232	56 394
Feed produced volume	87 032	79 440

• Seasonally record high production
• Prepared for high season
• Higher feed prices year-over-year, however, offset by higher raw material prices
• Pressure on margins in the market
• Construction of the new feed plant in Scotland progressing
• Trial production to commence in December

Scotland: Construction site of new plant

Second Quarter 2018 Financials, Markets and Harvest Volumes

Profit and Loss

Marine Harvest Group EUR million	Q2 2018	Q2 2017	YTD Q2 2018	YTD Q2 2017	2017
Operational income and other revenue	888 4	884 1	1 750 5 ,	1 776 1 ,	3 653 8 ,
1) Operational EBIT	175 2	197 9	332 7	417 1	792 1
Change in unrealized internal margin Gain/loss from derivatives Net fair value adjustment of biomass contracts , onerous Restucturing costs Other non-operational items	-1 2 0 0 71 1 0 4 0 0	0 4 1 5 -30 4 0 2 0 3	3 2 6 3 160 5 -0 4 0 1	-1 4 -4 7 -152 9 0 0 0 3	5 7 -20 2 -220 5 -2 5 0 3
Income from associated companies - fixed Impairment losses assets	9 5 0 1	7 5 -1 3	22 1 0 2	4 7 -1 9	33 7 -103 8
EBIT	255 0	176 1	524 6	263 8	484 9
Net financial items	-23 8	-84 1	-61 5	58 0	37 7
Earnings before tax	231 3	92 0	463 1	321 8	522 6
Profit loss for the period or	172 8	66 5	351 8	283 9	462 7
Basic EPS (EUR) EPS (EUR) Underlying Net cash flow share (EUR) per Dividend declared and paid share (NOK) per	0 35 0 26 0 12 2 60	0 14 0 31 0 24 3 00	0 72 0 49 0 33 20 5	0 62 0 67 0 62 80 5	0 97 1 23 0 74 12 40
Operational EBIT margin GWT (salmon) Harvest volume , 1) Operational EBIT kg incl margin from Sales and Marketing per ROCE 1)	19 7% 78 346 2 24 25 7 %	22 4% 78 612 2 52 31 2 %	19 0% 159 558 2 09 25 2 %	23 5% 162 380 2 57 32 4 %	21 7% 370 346 2 15 26 7 %

• Net fair value adjustment of biomass of EUR 71 million due to higher prices and more biomass in sea

• Net financial items impacted by EUR 11 million negative fair value effect of the convertible bond

Financial position

Marine Harvest Group EUR million	30.06.2018	30.06.2017	31.12.2017
Non-current assets	2 277.4	2 199.2	2 166.7
Current assets	2 310.1	2 044.5	2 163.5
Total assets	4 587.5	4 243.7	4 330.3
Equity	2 408.3	2 532.5	2 315.4
Non-current liabilities	1 540.3	969.6	1 215.2
Current liabilities	638.9	741.7	799.7
Total equity and liabilities	4 587.5	4 243.7	4 330.3
Net interest-bearing debt	950.7	550.9	831.9
Adjusted equity ratio	49.7%	58.1%	51.7%

Cash Flow and Net Interest Bearing Debt

Marine Harvest Group EUR million	Q2 2018	Q2 2017	YTD Q2 2018	YTD Q2 2017	2017
NIBD beginning of period	- 856 6	- 842 0	-831 9	-890 0	-890 0
Operational EBITDA	212 8	235 5	407 6	491 7	942 5
Change in working capital	-43 2	-3 0	-4 7	57 2	-114 6
Taxes paid	-53 3	-71 5	-103 8	-131 3	-177 4
Other adjustments	-3 5	1 3	5 2	-7 5	-18 1
Cash flow from operations	112 8	162 3	304 3	410 1	632 4
Net Capex	-68 1	-64 2	-144 7	-121 2	-248 7
Other investments and dividends received	22 9	24 5	14 2	14 6	13 9
Cash flow from investments	-45 2	-39 7	-130 5	-106 5	-234 7
Net interest and financial items paid	-9 3	-7 5	-16 2	-12 2	-27 5
Other items	-10 6	-8 8	-2 2	-18 8	-44 0
Net convertible bonds converted	0 0	328 0	0 0	349 1	349 1
Dividend / of paid in capital return	-134 0	-154 8	-266 5	-297 5	-640 3
Currency effect interest-bearing debt on	-7 7	11 5	-7 8	15 1	23 2
NIBD end of period	- 950 7	- 550 9	- 950 7	- 550 9	- 831 9
1): NIBD distribution
EUR	86%	65%	86%	65%	74%
USD	11%	12%	11%	12%	13%
GBP	3%	4%	3%	4%	4%
Other currencies	1%	20%	1%	20%	10%

1) Distribution including effect of cross currency sw aps. NIBD distribution for Q2-2018 and 2017. Gross debt distribution for Q2-2017

2018 Cash Flow Guidance

• Working capital buildup EUR ~120m
• Support further organic growth
• Capital expenditures EUR ~270m
• Freshwater expansion projects EUR ~35m
  • Sandøra (Region North Norway), Norheim (Region Mid Norway), Inchmore (Scotland)
• Sea water expansion projects EUR ~30m (Scotland, Canada, Chile)
• New feed plant in Scotland EUR ~60m
• Consumer Products expansion initiatives EUR ~20m (Miami, Ducktrap)
• Northern Harvest: EUR 215m
• Norwegian farming capacity growth EUR 70m (5.7 new standard licenses)
• Interest paid EUR ~40m
• Taxes paid EUR ~140m
• Quarterly dividend payment in Q3-2018 of NOK 2.60 per share as ordinary dividend

Overview financing

• Refinanced bank facility: EUR 1,206m Facility Agreement
• Maturity: 5 years (May 2022)
• Covenant: 35% equity ratio
• Accordion option: EUR 200m
• Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank and SEB
• EUR 340m convertible bond issued in November 2015
• Tenor 5 years, annual coupon of 0.125%1), conversion price EUR 13.4282
• EUR 200m bond issued in June 2018
• Tenor 5 years, EURIBOR + 2.15%
• Long term NIBD target increased to EUR 1,400m from EUR 1,200m
• Acquisition of Northern Harvest

Supply development

	Estimated volumes		Compared to Q2 2017		Est. volumes
Suppliers	Q2 2018	Q2 2017	Volume	%	Q1 2018
Norway	253 900	235 200	18 700	8.0%	261 900
Scotland	32 100	40 800	-8 700	-21.3%	31 000
Faroe Islands	16 100	22 300	-6 200	-27.8%	16 500
Ireland	2 000	5 100	-3 100	-60.8%	3 000
Total Europe	304 100	303 400	700	0.2%	312 400
Chile	140 000	117 600	22 400	19.0%	158 600
North America	38 600	36 400	2 200	6.0%	30 800
Total Americas	178 600	154 000	24 600	16.0%	189 400
Australia	12 200	12 200	0	0.0%	12 700
Other	6 300	6 600	-300	-4.5%	7 100
Total	501 200	476 200	25 000	5.2%	521 600

Source: Kontali

• Supply growth slightly more than guided, mainly caused by more volumes from Chile

• Norway: Harvesting as expected

• Chile: Harvested more than expected, driven by a larger number of fish harvested and higher average weights

Development in reference prices

	Q2 2018	Change vs	Q2 2018	Change vs
	Market	Q2 2017	NOK	Q2 2017
Norway (1)	EUR 7.16	-0.8%	NOK 68.46	1.1%
Chile (2)	USD 5.87	0.9%	NOK 47.12	-4.9%
Chile, GWT (3)	USD 7.10	2.5%	NOK 56.98	-3.4%
North America (4) North America, GWT (3)	USD 3.81 USD 7.99	12.3% 14.1%	NOK 30.55 NOK 64.12	5.9% 7.6%

Reference price Chile USD (Urner Barry average D-trim 3-4 lbs FOB Miami)

Reference price Canada USD (Urner Barry average superior GWE 10-12 lbs FOB Seattle)

Notes:

(1) NASDAQ average superior GWT/kg (gutted weight equivalent)

(2) Urner Barry average D trim 3-4 lbs FOB Miami

(3) Reference price converted back-to-plant equivalent in GWT/kg

(4) Urner Barry average GWE 10-12 lbs FOB Seattle

Global volume by market

	Estimated volumes		Compared to Q2 2017		Est. volumes		12 month comparison
Markets	Q2 2018	Q2 2017	Volume	%	Q1 2018	LTM	PTM	%
E U	218 300	204 200	14 100	6.9%	214 900	944 500	905 100	4.4%
Russia	20 200	13 400	6 800	50.7%	22 100	83 000	65 500	26.7%
Other Europe	18 000	17 400	600	3.4%	20 600	82 600	74 100	11.5%
Total Europe	256 500	235 000	21 500	9.1%	257 600	1 110 100	1 044 700	6.3%
USA	111 800	97 800	14 000	14.3%	108 600	418 900	375 500	11.6%
Brazil	19 300	18 100	1 200	6.6%	24 500	85 100	77 000	10.5%
Other Americas	24 500	26 100	-1 600	-6.1%	28 400	111 300	105 700	5.3%
Total Americas	155 600	142 000	13 600	9.6%	161 500	615 300	558 200	10.2%
China / Hong Kong	27 500	18 500	9 000	48.6%	24 900	102 700	74 900	37.1%
Japan	12 200	14 500	-2 300	-15.9%	12 800	54 300	59 800	-9.2%
South Korea / Taiwan	13 200	11 800	1 400	11.9%	14 800	51 400	40 300	27.5%
Other Asia	15 000	21 000	-6 000	-28.6%	21 200	78 300	72 200	8.4%
Total Asia	67 900	65 800	2 100	3.2%	73 700	286 700	247 200	16.0%
All other markets	23 600	22 900	700	3.1%	28 100	109 800	103 800	5.8%
Total	503 600	465 700	37 900	8.1%	520 900	2 121 900	1 953 900	8.6%
Inflow to US from Europe	23 200	23 500	-300	-1.3%	23 200	92 100	88 900	3.6%
Inflow to EU from Chile	9 900	6 200	3 700	59.7%	10 900	42 700	35 100	21.7%

• Strong demand - value of salmon increased in all main markets

• EU: strong demand across several key markets

• US: Growth continues, driven by the pre-packed segment
• Asia: Strong growth of 20% year-over-year in China/Hong Kong/Vietnam

Industry supply growth 2018E

	2015	2016	2017	2018		Estimates 2018
GWT (1,000)					Low	Y/Y growth	High	Y/Y growth
Norway	1 111	1 054	1 087	1 168	1 155	6 %	1 180	9 %
UK	150	142	157	142	139	-11 %	145	-8 %
Faroe Islands	68	70	72	62	60	-17 %	64	-11 %
Total Europe	1 328	1 265	1 316	1 372	1 354	3 %	1 389	6 %
Chile	538	454	508	571	563	11 %	578	14 %
North America	140	152	146	150	148	2 %	152	4 %
Total Americas	678	606	653	721	711	9 %	730	12 %
Other	79	79	92	92	90	-2 %	94	2 %
Total	2 085	1 949	2 062	2 184	2 155	5 %	2 213	7 %

	Q3 2015	Q3 2016	Q3 2017	Q3 2018E		Q3 2018E
GWT (1,000)					Low	Q/Q growth	High	Q/Q growth
Norway	274	272	281	307	301	7 %	313	12 %
UK	44	36	40	37	35	-12 %	38	-5 %
Faroe Islands	17	15	16	16	15	-5 %	17	7 %
Total Europe	334	323	337	360	351	4 %	368	9 %
Chile	131	101	127	125	122	-4 %	128	1 %
North America	35	40	39	39	38	-3 %	40	2 %
Total Americas	167	141	166	164	160	-4 %	168	1 %
Other	21	20	22	22	21	-6 %	23	3 %
Total	521	483	525	546	532	1 %	559	6 %

	Q4 2015	Q4 2016	Q4 2017	Q4 2018E		Q4 2018E
GWT (1,000)					Low	Q/Q growth	High	Q/Q growth
Norway	310	290	322	345	337	5 %	352	9 %
UK	41	37	40	42	41	1 %	44	9 %
Faroe Islands	22	20	19	13	12	-33 %	14	-22 %
Total Europe	372	346	381	401	392	3 %	410	8 %
Chile	152	116	145	147	142	-2 %	151	4 %
North America	37	38	40	42	41	2 %	43	7 %
Total Americas	189	154	185	188	183	-1 %	194	5 %
Other	22	20	25	27	26	2 %	28	10 %
Total	583	520	591	616	600	2 %	631	7 %

- 2018 guidance revised up to 5-7% (1-6% previous quarter)

• Higher expected volumes in Norway and Chile
• Kontali has revised down its 2019 global supply growth estimate
• Global: 4%
• Europe: 5%
• Americas: 2%

MHG volume guidance

Salmon species GWT (1 000)	2016 Actual	Q1 2017 Actual	Q2 2017 Actual	Q3 2017 Actual	Q4 2017 Actual	2017 Actual	Q1 2018 Actual	Q2 2018 Actual	Q3 2018 Guidance	Q4 2018 Guidance	2018 Guidance
, Norway	236 0	49 0	39 4	55 4	66 4	210 2	51 1	49 5	67 0	60 0	227 5
Scotland	45	17	18	10	13	60	8	9	9	14	42
	0	8	5	9	0	2	7	0	5	9	0
Canada	43	8	9	11	10	39	6	8	12	17	44
	3	9	4	2	0	4	6	0	5	4	5
Chile	36	6	7	13	17	44	12	9	14	13	50
	9	3	7	7	1	9	4	8	5	3	0
Ireland	8	0	3	3	2	9	1	1	2	1	6
	4	6	6	1	4	7	5	2	5	3	5
Faroes	10	1	0	1	3	6	1	0	2	5	9
	9	1	0	1	8	0	0	8	0	7	5
Total	380	83	78	95	112	370	81	78	108	112	380
	6	8	6	3	6	3	2	3	0	4	0

• 2018 volume guidance reduced from 400,000 GWT to 380,000 GWT (including Northern Harvest) primarily due to biological issues:

• Norway: Reduced by 14,500 GWT (~80% in Region South)

• Scotland: Reduced by 5,000 GWT
• Canada: Reduced by 6,500 GWT (including Northern Harvest volumes up by 1,500 GWT)
• Chile: Reduced by 2,500 GWT, escape incident
• Ireland reduced by 1,000 GWT and Faroes increased by 1,500 GWT

Outlook

• Strong demand response in several markets
• Fish Pool forward price (12 months) at EUR 6.4/kg (unchanged since May)
• Growth in China supported by removal of export restrictions from Norway
• Supply outlook for 2019 is favourable
• Acquisition of Northern Harvest adds a new dimension to our East Canadian business expansion
• Quarterly dividend payment in Q3-2018 of NOK 2.60 per share as ordinary dividend
• Capital Markets Day 13 November in Edinburgh, Scotland

Appendix

29

Dividend policy

• The quarterly dividend level shall reflect the present and expected future cash flow generation of the Company
• To this end, a target level for net interest bearing debt is determined, reviewed and updated on a regular basis

• When the target is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividends

• Long term NIBD target increased to EUR 1,400m from EUR 1,200m

• Acquisition of Northern Harvest

Contract coverage and sales contract policy

SALES CONTRACT POLICY
	Min hedging rate	Max hedging rate (1)
Norway (2)	0.0 %	50.0 %
Scotland	0.0 %	75.0 %
Canada	0.0 %	30.0 %
Chile (2)	0.0 %	50.0 %
Ireland	0.0 %	100.0 %
Faroes	0.0 %	30.0 %

Notes:

• (1) Hedging rates for the next quarter, limits dropping over time

• (2) Contract rate can be increased to 65% under special circumstances

• Q3 2018 contract shares (% of guided volume):

• Norway 39%
• Scotland 73%
• Canada 0%
• Chile 30%
• Contracts typically have a duration of 3-12 months
• Contracts are entered into on a regular basis

Quarterly segment overview

			SOURCES OF ORIGIN QTD
EUR million	Norway	Scotland	Canada	Chile	Ireland	Faroes	Other 1)	Group
OPERATIONAL EBIT
FARMING	115.5	14.7	7.3	14.4	2.8	2.0		156.7
SALES AND MARKETING
Markets	4.4	1.8	0.6	0.9	0.0	0.3	0.2	8.3
Consumer Products	4.4	4.8	0.0	3.1	-0.1	0.0	0.8	13.0
SUBTOTAL	124.4	21.3	7.8	18.3	2.7	2.3	1.0	178.0
Feed	2.3						-1.5	0.8
Other entities 1)							-3.6	-3.6
TOTAL	126.7	21.3	7.8	18.3	2.7	2.3	-4.0	175.2
Harvest volume (GWT)	49 491	8 958	8 031	9 849	1 239	778		78 346
Operational EBIT per kg (EUR) 1) - total Group	2.56	2.38	0.98	1.86	2.21	2.92		2.24
- of which Feed	0.05	0.00	0.00	0.00	0.00	0.00		0.01
- of which Markets	0.09	0.20	0.07	0.09	0.00	0.34		0.11
- of which Consumer Products	0.09	0.54	0.00	0.31	-0.08	0.00		0.17
ANALYTICAL DATA
Price achievement/reference price (%) 1)	91%	104%	96%	91%	na	113%		91%
Contract share (%)	48%	69%	0%	29%	86%	0%		43%
Quality - superior share (%)	89%	95%	87%	86%	92%	94%		89%
Exceptional items included in Operational EBIT	-2.1	0.0	-1.9	0.0	-1.4	0.0	0	-5.4
Exceptional items per kg (EUR)	-0.04	0.00	-0.24	0.00	-1.16	0.00		-0.07
GUIDANCE
Q3 2018 harvest volume (GWT)	67 000	9 500	12 500	14 500	2 500	2 000		108 000
2018 harvest volume (GWT)	227 500	42 000	44 500	50 000	6 500	9 500		380 000
Q3 2018 contract share (%)	39%	73%	0%	30%	88%	0%		37%

YTD segment overview

			SOURCES OF ORIGIN YTD
EUR million	Norway	Scotland	Canada	Chile	Ireland	Faroes	Other 1)	Group
OPERATIONAL EBIT
FARMING	217.3	25.8	13.4	25.4	8.8	2.5		293.1
SALES AND MARKETING
Markets	8.9	3.8	1.7	2.9	0.0	1.0	0.0	18.4
Consumer Products	17.1	7.8	0.0	6.8	0.3	0.0	2.0	34.0
SUBTOTAL	243.2	37.4	15.1	35.1	9.1	3.5	2.0	345.5
Feed	-0.9						-2.5	-3.5
Other entities 1)							-9.3	-9.3
TOTAL	242.3	37.4	15.1	35.1	9.1	3.5	-9.8	332.7
Harvest volume (GWT)	100 542	17 649	14 623	22 241	2 696	1 808		159 558
Operational EBIT per kg (EUR) 1) - total Group	2.41	2.12	1.03	1.58	3.38	1.93		2.09
- of which Feed	-0.01	0.00	0.00	0.00	0.00	0.00		-0.02
- of which Markets	0.09	0.22	0.12	0.13	0.00	0.55		0.12
- of which Consumer Products	0.17	0.44	0.00	0.31	0.12	0.00		0.21
ANALYTICAL DATA
Price achievement/reference price (%) 1)	94%	108%	98%	99%	na	113%		97%
Contract share (%)	44%	68%	0%	24%	85%	-		40%
Quality - superior share (%)	90%	95%	86%	87%	93%	91%		90%
Exceptional items included in Operational EBIT	-4.8	-1.0	-3.0	-0.1	-1.8	0.0	0	-10.7
Exceptional items per kg (EUR)	-0.05	-0.05	-0.20	0.00	-0.68	0.00		-0.07
GUIDANCE
Q3 2018 harvest volume (GWT)	67 000	9 500	12 500	14 500	2 500	2 000		108 000
2018 harvest volume (GWT)	227 500	42 000	44 500	50 000	6 500	9 500		380 000
Q3 2018 contract share (%)	39%	73%	0%	30%	88%	0%		37%

Quarterly segment overview

MH Operating Units			FARMING				MH Sales and Marketing	Consumer
EUR million	Norway	Scotland	Canada	Chile	Ireland	Faroes	Markets	Products	MH Feed	Other	Elim	Group*
Revenues and other income	326.7	62.4	53.8	54.8	13.0	5.1	543.3	503.1	88.0	5.1	$-766.9$	888.4
Operating EBITDA	130.5	19.1	10.8	18.2	3.8	2.7	7.4	20.2	2.7	$-2.7$	0.0	212.8
Operating EBIT	115.5	14.7	7.3	14.4	2.8	2.0	8.2	13.1	0.8	$-3.6$	0.0	175.2
Fair Value adj on biomass, contracts/ unrealised derivatives	64.7	9.5	$-12.6$	6.2	$-2.0$	1.7	$-0.1$	1.7	$-0.1$	2.1	0.0	71.0
Unrealized margin adjustment	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$-1.2$	$-1.2$
Restructuring cost	0.0	0.0	0.0	0.0	0.0	0.0	0.4	0.0	0.0	0.0	0.0	0.4
Other non-operational items	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Income/loss from associated companies	9.5	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$-0.1$	0.0	9.5
Write-down of fixed assets/intangibles	$-0.1$	0.0	0.0	0.1	0.0	0.0	0.0	0.1	0.0	0.0	0.0	0.1
EBIT	189.6	24.1	$-5.4$	20.7	0.8	3.7	8.6	14.8	0.7	$-1.5$	$-1.2$	255.0
Contribution to operational EBIT from Markets	4.4	1.8	0.6	0.9	0.0	0.3				0.2
Contribution to operational EBIT from Consumer products	4.4	4.8	0.0	3.1	$-0.1$	0.0	$-8.2$	$-13.1$		0.8		$-7.6$
Contribution to operational EBIT from Feed	2.3								$-0.8$	$-1.5$		0.0
Operational EBIT incl contribution from S&M	126.7	21.3	7.8	18.3	2.7	2.3	0.0	0.0	0.0	$-4.0$	0.0	175.2
Harvest / sales volume	49 4 9 1	8958	8 0 3 1	9849	1 2 3 9	778		33 4 26	70 232
Operational EBIT/kg incl contribution from S&M (EUR)	2.56	2.38	0.98	1.86	2.21	2.92						2.24
-of which Markets	0.09	0.20	0.07	0.09	0.00	0.34						0.11
-of which Consumer Products	0.09	0.54	0.00	0.31	$-0.08$	0.00						0.17
-of which Feed	0.05											0.01

Development in harvest volumes

GWT	2013	2014	2015 2016							2017					2018E
(1 000) ,	Total	Total	Total	Q 1	Q 2	Q 3	Q 4	Total	Q 1	Q 2	Q 3	Q 4	Total	Q 1	Q 2	Q3E	Q4E	Total
Norway	5	258	254	54	53	64	63	236	49	39	55	66	210	51	49	67	60	5
	222	0	8	0	7	6	6	0	0	4	4	4	2	1	5	0	0	227
Scotland	48	48	50	12	10	9	11	45	17	18	10	13	60	8	9	9	14	42
	4	9	1	6	8	8	8	0	8	5	9	0	2	7	0	5	9	0
Canada	33	26	40	11	11	10	9	43	8	9	11	10	39	6	8	12	17	44
	1	7	1	6	7	3	8	3	9	4	2	0	4	6	0	5	4	5
Chile	28	67	62	15	7	6	7	36	6	7	13	17	44	12	9	14	13	50
	3	5	5	4	1	9	6	9	3	7	7	1	9	4	8	5	3	0
Ireland	5	6	9	1	1	2	2	8	0	3	3	2	9	1	1	2	1	6
	9	3	7	4	5	9	7	4	6	6	1	4	7	5	2	5	3	5
Faroes	5 7	11 5	2 9	1 7	2 3	2 7	4 2	10 9	1 1	-	1 1	3 8	6 0	1 0	0 8	2 0	5 7	9 5
Total	343	418	420	96	87	97	99	380	83	78	95	112	370	81	78	108	112	380
	8	9	1	6	2	2	6	6	8	6	3	6	3	2	3	0	4	0

Growth relative to same period in previous year

	2013	2014	2015			2016					2017					2018E
	Total	Total	Total	Q 1	Q 2	Q 3	Q 4	Total	Q 1	Q 2	Q 3	Q 4	Total	Q 1	Q 2	Q3E	Q4E	Total
Norway	-13	16	-1	-17	-16	10	-5	-7	-9	-27	-14	4	-11	4	26	21	-10	8
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Scotland	20	1	3	77	-12	-41	-16	-10	41	71	11	10	34	-51	-52	-13	14	-30
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Canada	-18	-19	50	10	1	19	4	8	-23	-20	8	3	-9	-26	-14	12	73	13
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Chile	-30	139	-7	-4	-47	-63	-49	-41	-59	9	99	126	22	96	27	6	-22	11
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Ireland	-37	6	56	129	-51	-15	-3	-13	-55	150	8	-12	15	130	-66	-20	-45	-33
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Faroes	-18 %	104 %	-75 %	n/m	n/m	n/m	44 %	273 %	-31 %	-100 %	-60 %	-11 %	-45 %	-10 %	n/m	88 %	51 %	59 %
Total	-12	22	0	-3	-16	-8	-10	-9	-13	-10	-2	13	-3	-3	0	13	0	3
	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Cash flow guidance and historic developments

Financial commitments and cost of debt

Nova Sea

				Harvest	volume (GWT)			(1) EBIT	kg per		NIBD EURm
		Ownership %	2016	2017	Q2 2017	Q2 2018	2016	2017	Q2 2017	Q2 2018	Q2 2018
Nova	Sea	48%	37 064	40 700	6 997	10 825	2 97	2 72	3 07	3 42	8 4
-	- -	33.33 wholly owned licenses 4 partly owned licenses					Leading integrated salmon producer in Northern Norway
-		through direct and indirect shareholdings					Marine Harvest has an ownership in Nova Sea of ~48%
-	-	2017 dividends of NOK 500m (paid in Q2-18) Marine Harvest's direct share NOK ~213m
-		Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
	-	EUR 9.2m in Q2 2018

• Leading integrated salmon producer in Northern Norway
• 33.33 wholly owned licenses
• 4 partly owned licenses
• Marine Harvest has an ownership in Nova Sea of ~48% through direct and indirect shareholdings
• 2017 dividends of NOK 500m (paid in Q2-18)
• Marine Harvest's direct share NOK ~213m
• Proportion of income after tax reported as income from associated companies in Marine Harvest Norway

Debt distribution and interest rate hedging

	DEBT VOLUME HEDGED AND FIXED RATES OF INTEREST RATE HEDGES (MARCH-MARCH) (1)
CURRENCY	DEBT	2018			2019	2020			2021		2022
	29/06/2018(2)	Nominal value		Fixed rate(3) Nominal value		Fixed rate(3) Nominal value		Fixed rate(3) Nominal value	Fixed rate(3)	Nominal value	Fixed rate(3)
EUR m	768.6	860.3		2.16 % 1 296.5	2.50 %	716.6	1.24 %	380.0	2.20 %	-	0.00 %
USD m	128.0	138.5	3.21 %	167.5	2.93 %	78.3	2.31 %	78.3	2.31 %	60.0	4.13 %
GBP m	29.1	34.0	3.13 %	34.0	3.13 %	23.5	2.83 %	23.5	2.83 %	-	0.00 %
Other (EUR m)	105.3

Market value of IRS contracts in MEUR (29/06/18):	-65.6
Mark to market valuation effect in Q2(4):	3.0
Difference in fixed vs floating rate settled in cash in Q2	-5.4

Notes:

(1) March is the starting month for all interest hedging contracts

(2) Debt at book value after taking cross currency swaps into account

(3) Financing margin not included

(4) Quarterly change in market value booked against P/L

• External interest bearing debt is distributed as follows: EUR 86%, USD 11%, GBP 3%, other currencies 1%
• Policy: Marine Harvest ASA shall over time hedge 0%-35% of the Group's long-term interestbearing debt by currency with fixed interest or interest rate derivatives for the first 5 years, and 0% fixed rates thereafter. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD, GBP and NOK shall not be hedged

Hedging and long term currency exposure

POLICY

• EUR/NOK
• Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year.
• USD/CAD
• Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in CAD against the USD with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year.
• USD/CLP
• Marine Harvest shall not hedge the USD/CLP exposure
• Internal transaction hedging relating to bilateral sales contracts
• All bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and EUR
• The operating entities hedge this exposure towards the parent company. In accordance with the general hedging policy, this exposure is not hedged towards external counterparties
• The purpose of the internal hedging is to allow for a more accurate comparison between the MH Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT

Strategic currency hedging

	EUR/NOK		USD/CAD
STRATEGIC CURRENCY HEDGING	MEUR	Rate	MUSD	Rate
2018	99.6	9.45	14.4	1.33
2019	199.2	9.57	28.8	1.30
2020	99.6	9.98	4.8	1.29
P/L effect of contracts realized in Q2 (MEUR)	0.2
	MEUR
Market value 31/03/2018	-9.9
Change (1)	7.8
Market value 29/06/2018	-2.1

DESIGNATED MARKET CURRENCIES

Norway	EUR
Chile	USD
Canada	USD
Scotland	GBP
Ireland	EUR
Faroe Islands	EUR
Consumer Products Europe	EUR
Asia	USD
Feed	EUR