Bakkafrost P/f

Interim / Quarterly Report • Aug 21, 2018

INTERIM REPORT Q2 2018 and H1 2018

www.bakkafrost.com

Table of Contents

ig h l ig h H ts	2
nd f he d Su t 2 Q te 2 0 1 8 H 1 2 0 1 8 mm ar y o ua r r an	3

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

Contacts ............................................................................... 26

F ina ia l Re iew nc v	4	Co l i da te d Inc S ta te t ns o om e me n	1 3
Inc S ta te t om e me n	4	l i da d f Co te S ta te t o ns o me n
f ina ia l i ion S ta te t o F Po t me n nc s	5	he ive Co Inc mp re ns om e	1 3
Ca h low F s	5	Co l i da te d S ta te t o f ns o me n
ing Fa Se t rm g me n	6	ina ia l i ion F Po t nc s	1 4
V A P Se t g n me	7	Co l i da d Ca h low te F S ta te t ns n o s me	1 5
F O F Se t g me n	8	Co l i da te d S ta te t o f ns o me n
		ha in i C Eq ty ng es u	1 6
Ou t loo k	9
is ks R	1 1	he No te to t S ta te ts s me n	1 7
f he f he Ev ts te t Da te t en a r o
ina ia i ion S ta te t o f F l Po t me n nc s	1 1

Highlights

	Q 2	Q 2	H1	H1
00 0 DK K 1 ,	20 18	20 17	20 18	20 17
INC OM E S TA TE ME NT
Gro - O rat ing up pe re ve nue	95 4, 31 6	1, 20 6, 14 8	1, 80 5, 47 2	2, 05 9, 82 9
ion al IT* Gro - O rat EB up pe	40 7, 89 3	45 9, 15 7	67 6, 11 5	79 4, 61 1
Gro - E BIT up	40 3, 45 5	49 1, 31 7	75 4, 90 0	59 4, 36 6
Gro rof it f the rio d - P up or pe	33 8, 75 6	39 8, 06 6	61 1, 05 7	47 7, 09 6
Op tio l E BIT * ( Far mi and VA P) ( DK K) era na ng	37 6, 29 0	43 4, 97 2	59 3, 11 7	75 5, 16 4
tio l E */ kg ( mi and P) ( K) Op BIT Far VA DK era na ng	29 .17	23 .64	23 .59	23 .93
tio l E */ kg ( mi and P) ( K) Op BIT Far VA NO era na ng	37 .41	29 .77	30 .39	29 .51
Far mi - O ati ng per ng rev en ue	77 4, 78 3	1, 03 8, 60 5	1, 44 1, 43 8	1, 78 9, 98 9
mi ati Far - O al EB IT* ng per on	39 3, 18 8	48 9, 45 0	62 1, 63 1	86 2, 68 2
mi ati al in Far - O EB IT m ng per on arg	50 .7%	47 .1%	43 .1%	48 .2%
mi ati al IT/ kg ( K) Far - O EB DK ng per on	30 .47	26 .60	24 .73	27 .33
mi - O ati al IT/ kg ( NO K) Far EB ng per on	39 .09	33 .50	31 .85	33 .71
tin VA P - Op era g r ev en ue	93 61 8 ,	27 2, 58 2	18 6, 61 2	46 4, 12 5
tio l E * VA P - Op BIT era na	-16 89 8 ,	-54 47 8 ,	-28 51 4 ,	-10 7, 51 8
tio l E in VA P - Op BIT era na m arg	-18 .0%	-20 .0%	-15 .3%	-23 .2%
VA P - Op tio l E BIT / kg ( DK K) era na	-8. 58	-10 .33	-6. 98	-12 .07
VA P - Op tio l E BIT / kg ( NO K) era na	-11 .00	-13 .01	-8. 99	-14 .88
tin FO F - Op era g r ev en ue	32 6, 29 1	31 7, 03 3	62 6, 65 0	59 4, 17 4
FO F - EB ITD A	66 04 7 ,	47 82 7 ,	15 2, 48 0	92 97 4 ,
FO F - EB ITD A m in arg	20 .2%	15 .1%	24 .3%	15 .6%
K/ K ( e) DK NO ave rag	77 .97	79 .40	77 .64	81 .09

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 18	20 17	20 18	20 17
FIN AN CIA L P OS ITI ON AN D C AS H F LO W
tal To As set s***	5, 47 0, 32 2	5, 15 5, 51 6	5, 47 0, 32 2	5, 15 5, 51 6
uit *** Eq y	3, 72 5, 39 8	3, 62 6, 42 9	3, 72 5, 39 8	3, 62 6, 42 9
uit ati o* Eq y r	68 %	70 %	68 %	70 %
t in ter est -be ari de bt * Ne ng	3, 32 44 4	25 8, 07 0	3, 32 44 4	25 8, 07 0
Cas h f low fro rat ion m o pe s	27 9, 46 7	49 7, 99 7	64 7, 64 2	86 3, 30 1
h f low fro m f ina nci Cas ng	-55 5, 52 7	-47 4, 22 6	-45 3, 42 1	-39 6, 00 7
OF PR ITA BIL ITY
Ba sic rni har e ( DK K) ea ngs pe r s	6.9 6	8.1 9	12 .56	9.8 2
Dil ute d e ing sha ( DK K) arn s p er re	6.9 6	8.1 9	12 .56	9.8 2
CE RO	7.9 %	9.7 %	15 .4%	16 .9%
VO S LU ME
Ha ste d v olu s ( tgw ) rve me	12 90 2 ,	18 40 2 ,	25 13 9 ,	31 56 0 ,
VA P p rod d v olu s ( tgw ) uce me	1, 97 0	5, 27 3	4, 08 5	8, 90 9
ld f eed So to nn es	15 67 3 ,	17 03 2 ,	29 59 6 ,	36 85 9 ,
al f eed les Int to ern sa nn es	14 65 6 ,	16 01 2 ,	27 80 8 ,	34 96 5 ,
Sm olt lea sed th d ( ) re ou san pcs	2, 77 5	91 8 1,	90 9 5,	3, 31 3

* Aligned for fair value adjustment of biomass, onerous contracts provisions, income from associates and revenue tax – refer to Note 9

** Return on average capital employed, based on operational EBIT – refer to Note 9

*** Comparing figures with figures from end 2017

Summary Q2 2018 and H1 2018

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

The Bakkafrost Group delivered a total operating EBIT of DKK 407.9 million in Q2 2018. Harvested volumes were 12.9 thousand tonnes gutted weight. The combined farming and VAP segments made an operational EBIT of DKK 376.3 million. The farming segment made an operational EBIT of DKK 393.2 million. The salmon spot prices increased in Q2 2018, compared to the previous quarter. The price increase had a positive effect on the operational EBIT in the farming segment. The VAP segment made an operational EBIT of DKK -16.9 million. The EBITDA for the FOF segment was DKK 66.0 million.

The Group made a profit for Q2 2018 of DKK 338.8 million (DKK 398.1 million). For H1 2018, the profit was DKK 611.1 million (DKK 477.1 million).

The total volumes harvested in Q2 2018 were 12,902 tonnes gutted weight (18,402 tgw). Total harvested volumes in H1 2018 were 25,139 tonnes gutted weight (31,560 tgw). Bakkafrost has reduced its guidance for volumes for 2018 by 2,000 tonnes gutted weight, from 51,000 tonnes to 49,000 tonnes gutted weight.

2.8 million (1.9 million) smolts were transferred during Q2 2018. In H1 2018 5.9 million (3.3 million) smolts were transferred.

The combined farming and VAP segments made an operational EBIT of DKK 376.3 million (DKK 435.0 million) in Q2 2018. The operational EBIT per kg in Q2 2018 was DKK 29.17 (DKK 23.64), which corresponds to NOK 37.41 (NOK 29.77) for the combined farming and VAP segments. For H1 2018, the combined farming and VAP segments made an operational EBIT of DKK 593.1 million (DKK 755.2 million).

The farming segment made an operational EBIT of DKK 393.2 million (DKK 489.5 million) in Q2 2018. The harvested volumes were lower, and the average spot price was higher in Q2 2018, compared to Q2 2017. For H1 2018, the operational EBIT was DKK 621.6 million (DKK 862.7 million).

The VAP segment made an operational EBIT of DKK -16.9 million (DKK -54.5 million) for Q2 2018. The VAP segment has had negative results from Q2 2016 until Q3 2017, when it turned to a surplus, but the salmon spot prices increased again in Q1 2018, resulting in negative margins. For H1 2018, the operational EBIT was DKK -28.5 million (DKK -107.5 million).

The FOF segment (fishmeal, oil and feed) made an EBITDA of DKK 66.0 million (DKK 47.8 million) for Q2 2018, and the EBITDA margin was 20.2% (15.1%). The EBITDA was DKK 152.5 million in H1 2018 (DKK 93.0 million), corresponding to an EBITDA margin of 24.3% (15.6%).

During Q2 2018, Havsbrún sourced 118,387 tonnes (163,100 tonnes) of raw material, and in H1 2018, Havsbrún sourced 248,491 tonnes (269,667 tonnes) of raw material.

In accordance with Bakkafrost's dividend policy and the resolution of the Annual General Meeting 2018, Bakkafrost paid out DKK 10.50 (NOK 13.52) per share on 30 April 2018. The total dividend payment was DKK 513.0 million (NOK 660.6 million).

In Q2 2018, Bakkafrost's full-time employees from 2017, still employed in Bakkafrost, have received bonus shares with the value of 2% of their salary in 2017. In total, Bakkafrost allocated 14,206 shares to its employees. The total allocation amounted to DKK 5.2 million and was based on the closing share price on the allocation day, 14 June 2018.

Bakkafrost has through its recently established subsidiary Bakkafrost US signed an agreement in Q2 2018 to acquire the business and assets in North Landing, which is a US salmon importer focusing on the East Coast and has a sales office, handling and processing facilities in Clifton, New Jersey, USA. Through the acquisition, Bakkafrost will have a better market access and better abilities to serve Bakkafrost's customers in the US market. The acquisition of North Landing has been closed in Q3 2018.

Bakkafrost relinquished farming sites A-03 Svínáir and A-17/18 Hovsfjørður in July 2016 to comply with Faroese law, when acquiring the remaining outstanding shares in P/F Faroe Farming, which had farming operations in Suðuroy, Faroe Islands. Faroe Farming has since been merged with P/F Bakkafrost Farming. Bakkafrost has been in dialogue with the Faroese Authorities on how the farming operation in Suðuroy could be structured. In Q2 2018, the conclusion was made, which resulted in Bakkafrost relinquishing farming site A-82 Kaldbaksfjørður and getting back A-17/18 Hovsfjørður. In this restructuring Bakkafrost will have future farming opportunities in A-23 Hvalbiarfjørður, which will be part of the farming site A-15/16 Trongisvágsfjørður. Hvalbiarfjørður is a frontier farming area where preliminary research has been done. Bakkafrost will now start building up these new farming sites.

The net interest-bearing debt amounted to DKK 443.3 million at the end of Q2 2018 (DKK 258.1 million at year-end 2017). Undrawn credit facilities amounted to DKK 1,039 million at the end of Q2 2018.

The equity ratio was 68% at 30 June 2018, compared to 70% at the end of 2017.

Financial Review

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

Income Statement

The operating revenue amounted to DKK 954.3 million (DKK 1,206.1 million) in Q2 2018, and for H1 2018, the operating revenue amounted to DKK 1,805.5 million (DKK 2,059.8 million).

The farming segment's harvest volume was lower, and the achieved prices were higher in Q2 2018, compared to the same quarter last year. The VAP segment had lower revenues because of lower volumes, but higher prices in Q2 2018, compared to Q2 2017. The FOF segment had higher external revenues in Q2 2018, compared to Q2 2017.

Operational EBIT was DKK 407.9 million (DKK 459.2 million) in Q2 2018. The VAP and FOF segments had improved operational EBIT in Q2 2018, compared to Q2 2017. For H1 2018, the operational EBIT was DKK 676.1 million (DKK 794.6 million).

The fair value adjustment of the Group's biological assets amounted to DKK 34.8 million (DKK 54.9 million) in Q2 2018. The positive adjustment is due to higher forward market prices for salmon at the end of the quarter, compared to the beginning of the quarter. For H1 2018, the fair value adjustment amounted to DKK 141.9 million (DKK -179.7 million).

Change in provisions for onerous contracts amounted to DKK -6.1 million (DKK 25.1 million) in Q2 2018. For H1 2018, the change in provisions for onerous contracts amounted to DKK -6.1 million (DKK 55.2 million).

In Q2 2018, there was a profit from associated companies amounting to DKK -1.7 million (DKK -2.3 million). For H1 2018, the result from associated companies amounted to DKK 0.7 million (DKK -0.1 million).

The revenue tax amounted to DKK -31.4 million in Q2 2018 (DKK -45.5 million). The revenue tax decreased because of lower harvested volumes, compared to the same quarter last year. For H1 2018, the revenue tax was DKK -57.7 million (DKK -75.7 million).

Net interests in Q2 2018 were DKK 9.1 million (DKK -4.9 million). For H1 2018, net interests were DKK -9.6 million (DKK -11.2 million).

Net taxes amounted to DKK -73.8 million (DKK -88.4 million) in Q2 2018. For H1 2018, net taxes amounted to DKK -134.3 million (DKK -106.1 million).

The result for Q2 2018 was DKK 338.8 million (DKK 398.1 million) and for H1 2018, the result was DKK 611.1 million (DKK 477.1 million).

Statement of Financial Position

(Figures in parenthesis refer to end last year)

The Group's total assets amounted to DKK 5,470.3 million (DKK 5,155.5 million) at the end of Q2 2018.

Intangible assets are unchanged, compared to the beginning of the year, and amounted to DKK 376.7 million at the end of Q2 2018. Intangible assets primarily comprise the fair value of acquired farming licences. No licences in the North region are recorded with a value in the Bakkafrost accounts.

Property, plant and equipment amounted to DKK 2,714.6 million (DKK 2,570.4 million) at the end of Q2 2018. In Q2 2018, Bakkafrost made investments in PP&E amounting to DKK 131.1 million.

Non-current financial assets amounted to DKK 79.3 million (DKK 76.7 million) at the end of Q2 2018.

The carrying amount (fair value) of biological assets amounted to DKK 1,107.3 million (DKK 1,096.7 million) at the end of Q2 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 328.9 million (DKK 187.0 million) at the end Q2 of 2018.

Inventories amounted to DKK 478.9 million (DKK 305.8 million) at the end of Q2 2018. The inventories primarily represent Havsbrún's inventory of fishmeal, fish oil and fish feed.

Total receivables, including long-term receivables, amounted to DKK 429.2 million (DKK 419.6 million) at the end of Q2 2018.

The Group's equity amounted to DKK 3,725.4 million (DKK 3,626.4 million) at the end of Q2 2018. The change in equity consists primarily of the positive result for Q2 2018 and paid-out dividend.

Total non-current liabilities amounted to DKK 1,340.7 million (DKK 602.1 million) at the end of Q2 2018.

Deferred taxes and other taxes amounted to DKK 613.0 million (DKK 455.4 million) at the end of Q2 2018.

Long-term debt was DKK 727.5 million (DKK 146.7 million) at the end of Q2 2018.

At the end of Q2 2018, the Group's total current liabilities were DKK 404.2 million (DKK 926.9 million). The current liabilities consist of accounts payable and tax payable.

Derivatives amounted to DKK 0.2 million (DKK 127.3 million) at the end of Q2 2018.

Short-term interest-bearing debt amounted to DKK 0.0 million (DKK 378.3 million) at the end of Q2 2018.

The equity ratio was 68% at the end of Q2 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 279.5 million (DKK 498.0 million) in Q2 2018. The changes in receivables, current debts and inventory all had a negative effect on the cash flow from operations. For H1 2018, the cash flow from operations was DKK 647.6 million (DKK 863.3 million).

The cash flow from investment activities amounted to DKK -108.0 million (DKK -169.6 million) in Q2 2018. The amount relates to investments in property, plant and equipment. For H1 2018, the cash flow from investments amounted to DKK -219.4 million (DKK -348.9 million).

The cash flow from financing activities totalled DKK -555.5 million (DKK -474.2 million) in Q2 2018. For H1 2018, cash flow from financing amounted to DKK -453.4 million (DKK -396.0 million).

In Q2 2018, net change in cash flow amounted to DKK -384.0 million (DKK -145.8 million). For H1 2018, net change in cash flow amounted to DKK -25.2 million (DKK 118.4 million).

At the end of Q2 2018, Bakkafrost had unused credit facilities of DKK 1,039.1 million (DKK 826.4 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 Q2 2018 were 12,902 tonnes gutted weight (18,402 tgw) – a decrease in volumes of 30%. 12,902 tgw came from the North region and 0 tgw from the West region. Total harvested volumes for H1 2018 were 25,139 tonnes gutted weight (31,560 tgw), which is in line with the forecast for 2018.

2.8 million (1.9 million) smolts were transferred in Q2 2018. In H1 2018, 5.9 million (3.3 million) smolts were transferred. This is in line with the smolt transfer plan.

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

Financial performance

In Q2 2018, the operating revenue for Bakkafrost's farming segment was DKK 774.8 million (DKK 1,038.6 million). The operating revenue for the farming segment for H1 2018 was DKK 1,441.4 million (DKK 1,790.0 million).

In Q2 2018, the farming segment's EBIT amounted to DKK 396.6 million (DKK 498.8 million). The farming segment's EBIT for H1 2018 was DKK 705.8 million (DKK 607.3 million).

Operational EBIT amounted to DKK 393.2 million (DKK 489.4 million) in Q2 2018, which corresponds to an operational EBIT margin of 51% (47%). In H1 2018, operational EBIT was DKK 621.6 million (DKK 862.7 million).

Operational EBIT/kg for the farming segment was DKK 30.47 (NOK 39.09) in Q2 2018, compared with DKK 26.60 (NOK 33.50) in Q2 2017. Operational EBIT/kg for H1 2018 was DKK 24.73 (NOK 31.85), compared with DKK 27.33 (NOK 33.71) for H1 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

15% (29%) of the total harvested volumes in Q2 2018 went to production of VAP products and 16% (28%) of the harvested volumes in H1 2018 went to production of VAP products.

The VAP production in Q2 2018 was 1,970 tonnes gutted weight (5,273 tgw). The decrease in production in Q2 2018 was 63%, compared to Q2 2017. The contract coverage is reduced, compared to the previous year, as some contracts were not renewed in Q4 2017. In H1 2018, the VAP production was 4,085 tgw (8,909 tgw).

Financial performance

The operating revenue for the VAP segment amounted to DKK 93.6 million (DKK 272.6 million) in Q2 2018. The decrease in revenue is due to lower volumes in Q2 2018, compared with Q2 2017. In H1 2018, the VAP revenue was DKK 186.6 million (DKK 464.1 million).

The VAP segment had an EBIT amounting to DKK -23.0 million (DKK -29.4 million) in Q2 2018. Changes in onerous contracts were DKK -6.1 million (DKK 25.1 million). In H1 2018, the VAP segment's EBIT amounted to DKK -34.6 million (DKK -52.3 million).

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

Operational EBIT amounted to DKK -16.9 million (DKK -54.5 million) in Q2 2018, corresponding to an operational EBIT of DKK -8.58 (NOK -11.00) per kg gutted weight in Q2 2018, compared with DKK -10.33 (NOK -13.01) per kg gutted weight in Q2 2017.

The higher salmon spot prices in Q2 2018 had a negative effect on the VAP segment's margin as the VAP segment buys the raw material at spot prices. For H1 2018, operational EBIT amounted to DKK -28.5 million (DKK -107.5 million), corresponding to an operational EBIT of DKK -6.98 (NOK -8.99) per kg, compared with an operational EBIT of DKK -12.07 (NOK -14.88) in H1 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 118,387 tonnes (163.100 tonnes) of raw material to produce fishmeal and fish oil in Q2 2018. The raw material intake depends on the fishery in the North Atlantic and available species of fish. In H1 2018, Havsbrún received 248,491 tonnes (269,667 tonnes) of raw material.

The production of fishmeal in Q2 2018 was 24,592 tonnes (33,654 tonnes). For H1 2018, Havsbrún produced 51,706 tonnes (56,717 tonnes) of fishmeal.

The production of fish oil in Q2 2018 was 1,305 tonnes (1,261 tonnes). The production of fish oil varies, depending on the species of fish sourced for production and the timing of catch. For H1 2018, Havsbrún produced 5,169 tonnes (4,502 tonnes) of fish oil.

Sales of feed amounted to 15,673 tonnes (17,032 tonnes) in Q2 2018, of which the farming segment internally used 14,656 tonnes (16,012 tonnes) or 93.5% (94.0%). For H1 2018, Havsbrún sold 29,596 tonnes (36,859 tonnes) of feed.

Financial performance

The operating revenue for the FOF segment amounted to DKK 326.3 million (DKK 317.0 million) in Q2 2018, of which DKK 144.3 million (DKK 149.1 million) represented sales to Bakkafrost's farming segment, corresponding to 44% (47%). For H1 2018, the revenue amounted to DKK 626.7 million (DKK 594.2 million) of which DKK 270.9 million (DKK 335.0 million) represented sales to Bakkafrost's farming segment, corresponding to 43% (56%).

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

Total revenue for the FOF segment in Q2 2018 increased 3%, compared to the same quarter last year. The internal revenue has decreased, but external sales have increased. The increase in external revenue is due to higher volumes of fishmeal sold in Q2 2018, compared to Q2 2017.

EBITDA was DKK 66.0 million (DKK 47.8 million) in Q2 2018, and the EBITDA margin was 20.2% (15.1%). Havsbrún sources raw pelagic fish for the fishmeal and fish oil production, which are part of the recipe to produce salmon feed. For H1 2018, the EBITDA was DKK 152.5 million (DKK 93.0 million), corresponding to an EBITDA margin of 24.3% (15.6%).

OutlookMarket

The latest update from Kontali Analyse estimates that the global supply of Atlantic salmon increased around 8% in Q2 2018, compared to Q2 2017. The growth comes from Norway and Chile, which have increased the forecast for 2018 since Q1 2018. The global harvest growth is expected to be around 6-8% in 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.

Investments

Bakkafrost has since 2013, when the first five-years investment program was announced, invested in its value chain to prepare the company for the future. The last update on the investment program was in June 2016, when investments from 2016 to 2020 were announced. The total investments for the 2016 to 2020 period was DKK 2.2 billion, including maintenance CAPEX.

Bakkafrost has updated the investment program and is pleased to announce an investment program for the period from 2018 to 2022. The new investment program builds on the same strategy set out in the investment program from June 2016, but also includes new strategic initiatives.

The planned investment program from 2018 to 2022 will amount to DKK 3 billion over 5 years 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.

Maintenance capex is included in the investment program.

Over the next five years Bakkafrost will use around DKK 425 million in the fishmeal, oil and feed business to increase feed capacity and feed line capabilities. Investment will also be made to increase the fish oil capacity to support marine index.

Bakkafrost has taken the full responsibility of the Faroese broodstock program and obtains the genome rights in 2021. In the new investment program, Bakkafrost expects to invest around DKK 200 million in a new site to run the broodstock program in a totally closed land-based system.

Investment in the farming operation will be around DKK 1.3 billion over the next five years. Investments in new sites in Suðuroy will together with the large smolt strategy add a further capacity of 10 thousand tonnes. Farming site A-17/18 Hovsfjørður has already started operation, and A-23 Hvalbiarfjørður is expected to start operation in H1 2019. Investment will be in transportation of fish and selected R&D investment to cater growth beyond current horizon.

Bakkafrost's sustainability commitment is also seen in the new investment plan. Bakkafrost has – as part of Bakkafrost's 2020 Healthy Living Plan – decided to build a biogas plant. The biogas investment is included in the farming operation investment.

Bakkafrost will continue the existing smolt projects and launch new projects to support the large smolt strategy for the new farming areas. Construction of a new hatchery in Suðuroy for large smolt production is expected to commence early 2019. Bakkafrost's investments in smolt operation in the next five years will be around DKK 1 billion.

Bakkafrost has recently invested in a new state of the art VAP factory in Glyvrar. Investments in the VAP segment will be around DKK 85 million in the next five years.

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 comply with this strategy.

Bakkafrost expects to harvest 49,000 tonnes gutted weight in 2018. The reduction of the 2018 harvest forecast of 2,000 tonnes gutted weight – from 51,000 tonnes gutted weight previously – is due to earlier harvest in A-13 Borðoyavík in Q2 2018 because of precautionary action to maintain a good biological situation.

Bakkafrost expects to release 13.9 million smolts in 2018, compared with 9.9 million smolts in 2017 and 11.7 million smolts released in 2016. 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 12% of the expected harvested volumes for the rest of 2018. The contract coverage is reduced, compared to the previous year. 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 2018 recommendation for blue whiting is 1,388 thousand tonnes, compared with 1,342 thousand tonnes in 2017.

The production of fishmeal and fish oil in 2017 was record high because of good availability of raw material. Bakkafrost expects relatively high production volumes of fishmeal and fish oil in 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 2018 are expected to be at 80,000 tonnes, depending on external sales.

The new salmon meal and salmon oil plant started operation early in Q3 2018. This operation will increase the value of offcuts from salmon harvested and processed in the new harvest/VAP factory at Glyvrar.

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, which was renewed for five years in Q1 2018, 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

The Annual Report 2017 is available on request from Bakkafrost and on Bakkafrost's website, www.bakkafrost.com.

Bakkafrost is, as explained in the Annual Report 2017, exposed to the salmon price. Global supply of salmon will increase in 2018 and will influence the salmon price.

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.

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 30 June 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, August 20th, 2018

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 30 June 2018, as well as the results of the Group activities and cash flows for the period 1 January 2018 to 30 June 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 30 June 2018

Q2 Q2 H1 H1 DKK 1,000 2018 2017 2018 2017 Operating revenue 954,316 1,206,148 1,805,472 2,059,829 Purchase of goods -254,324 -240,697 -543,469 -514,675 Change in inventory and biological assets (at cost) 6,770 -137,750 38,163 -55,249 Salary and personnel expenses -87,115 -112,729 -178,298 -208,162 Other operating expenses -163,172 -210,361 -351,396 -400,061 Depreciation -48,582 -45,454 -94,357 -87,071 Operational EBIT * 407,893 459,157 676,115 794,611 Fair value adjustments of biological assets 34,777 54,853 141,908 -179,724 Onerous contracts -6,109 25,087 -6,109 55,219 Income from associates -1,695 -2,312 724 -60 Revenue tax -31,411 -45,468 -57,738 -75,680 Earnings before interest and taxes (EBIT) 403,455 491,317 754,900 594,366 Net interest revenue 621 364 1,622 554 Net interest expenses -3,019 -6,349 -7,944 -13,547 Net currency effects 12,347 2,277 -812 4,118 Other financial expenses -815 -1,165 -2,442 -2,327 Earnings before taxes (EBT) 412,589 486,444 745,324 583,164 Taxes -73,833 -88,378 -134,267 -106,068 Profit or loss for the period 338,756 398,066 611,057 477,096 Profit or loss for the year attributable to Non-controlling interests 0 0 0 0 Owners of P/F Bakkafrost 338,756 398,066 611,057 477,096 Earnings per share (DKK) 6.96 8.19 12.56 9.82 Diluted earnings per share (DKK) 6.96 8.19 12.56 9.82

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

Consolidated Statement of Comprehensive Income

For the period ended 30 June 2018

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 18	20 17	20 18	20 17
fit for th eri od Pro e p	33 8, 6 75	39 8, 06 6	61 05 1, 7	09 6 47 7,
Fai alu dju of fin ial de riv ati stm ent r v e a anc ve s	-14 4	-14 39 1 ,	-16 04 5 ,	-17 71 9 ,
eff Inc e t ect om ax	22	2, 19 5	5, 91 4	2, 70 3
har e-b d p Res e t nt erv o s ase ay me	17 5	51 2	74 5	22 0
Cu tra nsl ati dif fer rre ncy on enc es	-54	41 7	1	41 3
Ad jus tm ent of tre sha asu ry res	1, 66 3	3, 29 8	1, 14 0	4, 05 8
the reh siv e in o b ecl ifie d t Ne t o e t r co mp en com e r ass o
fit los s in bse eri od t p pro or su qu en s	1, 66 2	-7, 96 9	-8, 24 5	-10 32 5 ,
siv e in sif ied Ne t o the reh ot to be las r co mp en com e n rec
fit los s in bse rio ds to ent pro or su qu pe	0	0	0	0
Oth he nsi in er com pre ve com e	66 2 1,	96 9 -7,	-8, 24 5	-10 32 5 ,
siv e in e f rio To tal ot he reh the d r co mp en com or pe	34 0, 41 8	39 0, 09 7	60 2, 81 2	46 6, 77 1
reh siv e in e f the rio d a ibu tab le t Co ttr mp en com or pe o
tro llin int sts No n- con g ere	0	0	0	0
Ow f P / F B akk afr ost ner s o	34 0, 41 8	39 0, 09 7	60 2, 81 2	46 6, 77 1

Consolidated Statement of Financial Position

As at 30 June 2018

	30 Ju n	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	37 6, 67 5	37 6, 67 5
Pro rty lan t a nd uip nt pe , p eq me	2, 71 4, 63 3	2, 57 0, 43 0
Fin ial ets anc ass	79 31 0 ,	76 70 2 ,
eiv ab les Lon ter g- m rec	9, 20 0	0
tal To t a ts no n-c urr en sse	3, 17 9, 81 8	3, 02 3, 80 7
Cu nt ets rre ass
Bio log ica l as s ( bio ss) set ma	1, 10 7, 27 5	1, 09 6, 66 4
Inv ent ory	47 8, 87 2	30 5, 84 5
tal in To nto ve ry	58 6, 1, 14 7	40 2, 50 9 1,
cei ble Ac nts cou re va	35 2, 43 7	26 2, 49 3
Oth eiv ab les er rec	67 59 1	15 7, 15 6
tal cei ble To re va s	, 42 0, 02 8	41 9, 64 9
Cas h a nd sh uiv ale nts ca eq	28 4, 32 9	30 9, 55 1
tal To nt ets cu rre ass	2, 29 0, 50 4	2, 13 1, 70 9
TO TA L A SSE TS	5, 47 0, 32 2	5, 15 5, 51 6

DK K 1 00 0 ,	30 Ju n 20 18	31 De c 20 17
EQ ES UIT Y A ND LIA BIL ITI
uit Eq y
Sha ita l re cap	48 85 8 ,	48 85 8 ,
Oth uit er eq y	67 6, 0 3, 54	3, 57 7, 57 1
To tal uit eq y	3, 72 5, 39 8	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	61 3, 02 5	45 5, 44 9
int bea rin de bt Lon ter st- g- m ere g	72 7, 47 4	6, 69 6 14
Fin ial de riv ati anc ve s	17 9	0
t li ilit ies To tal ab no n-c urr en	1, 34 0, 67 8	60 2, 14 5
Cu liab ilit ies nt rre
Fin ial de riv ati anc ve s	0	12 7, 25 5
Sho rt-t in ter est -be ari de bt erm ng	0	37 8, 30 0
ble d o the r d ebt Ac nts cou pa ya an	40 4, 24 6	42 1, 38 7
tal liab ilit ies To nt cu rre	40 4, 24 6	92 6, 94 2
lia bil itie To tal s	1, 74 4, 92 4	1, 52 9, 08 7
TO TA L E Q UIT Y A ND LIA BIL ITI ES	5, 47 0, 32 2	5, 15 5, 51 6

Consolidated Cash Flow Statement

For the period ended 30 June 2018

	Q 2	Q 2	H1	H1
DK K 1 00 0 ,	20 18	20 17	20 18	20 17
nin bef in d t ( IT) Ear ter est EB gs ore an ax es	40 3, 45 5	49 1, 31 7	75 4, 90 0	59 4, 36 6
Ad jus tm ent s fo rite -do nd de cia tio r w wn s a pre n	27 58 2 ,	45 45 4 ,	73 35 7 ,	87 07 1 ,
Ad jus s fo alu dju of bi tm ent stm ent r v e a om ass	-34 77 7 ,	-54 85 3 ,	-14 1, 90 8	17 9, 72 4
Ad jus s fo r in e f iat tm ent com rom as soc es	1, 69 5	2, 31 2	-72 4	60
Ad jus s fo eff tm ent ect r c urr en cy s	17 07 8 ,	6, 37 2	7, 52 3	10 16 6 ,
Ad jus tm ent s fo isio n f tra cts r p rov or on ero us con	6, 10 9	-25 08 7 ,	6, 10 9	-55 21 9 ,
Ch in inv ent an ge ory	-8, 05 3	8, 46 11 7	73 0 -41 ,	30 67 3 ,
Ch in eiv ab les an ge rec	-10 6, 89 8	-72 92 5 ,	-15 68 8 ,	-2, 83 1
Ch e i de bts ent ang n c urr	-26 72 4 ,	-13 06 0 ,	5, 80 3	19 29 1 ,
Cas h f low fro rat ion m o pe s	27 9, 46 7	49 7, 99 7	64 7, 64 2	86 3, 30 1
h f low fro inv Cas est nts m me
ds fro ale of fix ed Pro ets cee m s ass	25 00 0 ,	0	25 00 0 ,	0
Pay nts fo has f fi xed set me r p urc e o as s	-13 1, 08 9	-16 9, 59 6	-24 2, 56 0	-34 8, 94 1
han fro ub sid iar ies Ne t c ge m s	-1, 88 3	0	-1, 88 3	0
h f low fro inv Cas est nts m me	-10 7, 97 2	-16 9, 59 6	-21 9, 44 3	-34 8, 94 1
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	-42 90 5 ,	-46 01 1 ,	63 70 9 ,	39 61 9 ,
Fin ial inc anc om e	62 1	36 4	1, 62 2	55 4
Fin ial anc ex pen ses	-3, 83 4	-7, 51 4	-10 38 6 ,	-15 87 4 ,
Ne t p eed s f le o f o sh roc rom sa wn are s	1, 26 9	1, 73 0	2, 31 2	2, 48 9
Div ide nd id pa	0, 67 8 -51	-42 2, 79 5	0, 67 8 -51	-42 2, 79 5
h f low fro m f ina nci Cas ng	-55 5, 52 7	-47 4, 22 6	-45 3, 42 1	-39 6, 00 7
in uiv in rio Ne t c ha sh d c ash ale nts d nge ca an eq pe	-38 4, 03 2	-14 5, 82 5	-25 22 2 ,	11 8, 35 3
h a nd h e iva len ing ba lan Cas ts cas qu – o pen ce	66 8, 36 1	49 9, 17 4	30 9, 55 1	23 4, 99 6
Cas h a nd sh uiv ale nts los ing ba lan tot al ca eq – c ce	28 4, 32 9	35 3, 34 9	28 4, 32 9	35 3, 34 9

Consolidated Statement of Changes in Equity

As at 30 June 2018

								Biom ass
		Sha re		Sha re-	Cur renc y			Fair val ue
DKK 00	Sha re ital	miu Pre m Res	Trea sury Sha	base d t	slat ion tran diff	Der ivat ives	ed Pro pos Div iden d	adju st- ts	ined Reta Earn	l Tota
1,0 ity 0 Equ 1.01 .201 8	Cap 48,8 58	erv e 306 ,537	res -18, 160	Pay men 3,87 4	eren ces 6,27 1	-104 ,351	513 ,009	men 186 ,951	ings 2,68 3,43 9	Equ ity 3,62 6,42 8
soli date d pr ofit Con	0	0	0	0	0	0	0	141 ,908	475 ,985	617 ,893
nsiv e in Oth rehe er c omp com e:
Fair val djus f fin ial d eriv ativ tme nt o ue a anc es	0	0	0	0	0	-16 ,045	0	0	0	-16 ,045
Inco tax effe ct me	0	0	0	0	0	5,91 4	0	0	0	5,91 4
Sha re-b ased t pay men	0	0	0	745	0	0	0	0	0	745
Curr tra nsla tion diff ency eren ces	0	0	0	0	1	0	0	0	0	1
nsiv e in Tota l oth rehe er c omp com e	0	0	0	745	1	-10, 131	0	0	0	-9,3 85
l com hen sive inc Tota pre ome	0	0	0	745	1	-10, 131	0	141 ,908	475 ,985	608 ,508
ion with Tran sact ow ners :
Trea sha sury res	0	0	1,14 0	0	0	0	0	0	0	1,14 0
Paid div iden d -out	0	0	0	0	0	0	-51 3,00 9	0	2,33 1	-51 0,67 8
Tota l tra tion wit h ow nsac ners	0	0	0 1,14	0	0	0	3,00 9 -51	0	2,33 1	-509 ,538
l cha s in ity Tota nge equ	0	0	1,14 0	745	1	-10, 131	-51 3,00 9	141 ,908	478 ,316	98,9 70
uity Tota l eq 30. 06.2 018	48,8 58	306 ,537	-17, 020	4,61 9	6,27 2	-114 ,482	0	328 ,859	3,16 1,75 5	3,72 5,39 8
ity 0 Equ 1.01 .201 7	48,8 58	306 ,537	-21, 045	2,65 1	5,85 6	-83, 196	425 ,065	880 ,491	1,98 3,81 8	3,54 9,03 5
soli ofit Con date d pr	0	0	0	0	0	0	0	-69 3,54 0	1,21 0,35 9	516 ,819
Oth rehe nsiv e in er c omp com e:
Fair val djus f fin ial d eriv ativ tme nt o ue a anc es	0	0	0	0	0	-25 ,799	0	0	0	-25 ,799
Inco tax effe ct me	0	0	0	0	0	4,64 4	0	0	0	4,64 4
Sha re-b ased t pay men	0	0	0	1,22 3	0	0	0	0	0	1,22 3
Curr tra nsla tion diff ency eren ces	0	0	0	0	415	0	0	0	0	415
nsiv e in Tota l oth rehe er c omp com e	0	0	0	1,22 3	415	-21, 155	0	0	0	-19, 517
Tota l com hen sive inc pre ome	0	0	0	1,22 3	415	-21, 155	0	-69 3,54 0	1,21 0,35 9	497 ,302
ion with Tran sact ow ners :
Trea sha sury res	0	0	2,88 5	0	0	0	0	0	0	2,88 5
Paid div iden -out d	0	0	0	0	0	0	-42 5,06 5	0	2,27 1	-42 2,79 4
ed d ivid end Pro pos	0	0	0	0	0	0	513 ,009	0	3,00 9 -51	0
Tota l tra tion wit h ow nsac ners	0	0	2,88 5	0	0	0	87,9 44	0	-510 ,738	-419 ,909
Tota l cha s in ity nge equ	0	0	2,88 5	1,22 3	415	-21, 155	87,9 44	-69 3,54 0	699 ,621	77,3 93
Tota l eq uity 31. 12.2 017	48,8 58	306 ,537	-18, 160	3,87 4	6,27 1	-104 ,351	513 ,009	186 ,951	2,68 3,43 9	3,62 6,42 8
Equ ity 0 1.01 .201 7	48,8 58	306 ,537	-21, 045	2,65 1	5,85 6	-83, 196	425 ,065	880 ,491	1,98 3,81 8	3,54 9,03 5
Con soli date d pr ofit	0	0	0	0	0	0	0	-179 ,724	662 ,450	482 ,726
Oth rehe nsiv e in er c omp com e:
Fair val djus tme nt o f fin ial d eriv ativ ue a anc es	0	0	0	0	0	-17 ,719	0	0	0	-17 ,719
effe Inco tax ct me	0	0	0	0	0	2,70 3	0	0	0	2,70 3
Sha re-b ased t pay men tion diff Curr tra nsla	0 0	0 0	0 0	220 0	0 413	0 0	0 0	0 0	0 0	220 413
ency eren ces l oth rehe nsiv e in Tota er c com e	0	0	0	220	413	016 -15,	0	0	0	383 -14,
omp Tota l com hen sive inc ome	0	0	0	220	413	-15, 016	0	-179 ,724	662 ,450	468 ,343
pre
Tran sact ion with ow ners :
sha Trea sury res	0	0	4,05 8	0	0	0	0	0	0	4,05 8
Paid div iden d -out	0	0	0	0	0	0	-42 5,06 5	0	2,27 1	-42 2,79 4
Tota l tra tion wit h ow nsac ners	0	0	4,05 8	0	0	0	-42 5,06 5	0	2,27 1	-418 ,736
Tota l cha s in ity nge equ	0	0	4,05 8	220	413	-15, 016	-42 5,06 5	-179 ,724	664 ,721	49,6 07
Tota l eq uity 30. 06.2 017	48,8 58	306 ,537	-16, 987	2,87 1	6,26 9	-98, 212	0	700 ,767	2,64 8,53 9	3,59 8,64 2

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 are the same as those applied in the Annual Report as at and for the year ended 31 December 2017.

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

* Source Fish Pool

4 Q (forward) 6.61 6.70 5.58

Note 5. Segments

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

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

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

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 2	Q 2	H 1	H 1
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	4 0 2, 9 4 8	4 9 8, 3 4 4	6 9 3, 3 0 3	6 0 2, 6 9 0
( lue d de d du ) V A P Va A Pr ts o c	0 -2 3, 7 7	9, 9 -2 5 8	0 -3 5, 1 8	0 -5 3, 8 7
( is hm l, f is h i l a d f is h d ) F O F F O Fe ea n e	5 9, 8 4 2	3 3, 0 5 5	1 4 1, 9 9 4	7 0, 7 7 5
l im ina ion E t s	-2 7, 1 2 4	-1 5, 3 6 6	-5 4, 9 5 5	-3 7, 2 1 4
ing be fo ( ) Gr tax E B T ou p ea rn s re es	4 1 2, 5 8 9	4 8 6, 4 4 4	7 4 5, 3 2 4	5 8 3, 1 6 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 0 Ju ne	3 0 Ju ne	3 1 De c
D K K 1, 0 0 0		2 0 1 8	2 0 1 7	2 0 1 7
Fa ing * rm		5, 0 6 2, 2 9 9	5, 2 6 4, 2 0 0	4, 7 2 8, 4 0 2
V A P ( Va lue A d de d Pr du ts ) * o c		2 0 7, 8 2 7	3 2 6, 5 2 3	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		9 8 2, 1 4 8	8 0 4, 0 2 0	8 0 3, 3 5 9
l im ina ion E t s		8 9 2 -7 1, 5	6 6 -7 5 7, 7	-6 8, 3 8 0 7
l a To ta ts sse		0, 3 2 2 5, 4 7	6 3 3, 0 6 5, 7	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		-5 2 9, 8 6 7	-8 1 3, 4 1 6	-5 2 9, 9 3 1
( lue d de d du ) V A P Va A Pr ts o c		-2 2, 3 7 9	-1 2, 5 8 0	-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		-6 3 3, 1 6 8	-5 3 4, 7 4 4	-5 6 2, 1 8 9
l im ina ion E t s		-5 5 9, 5 1 0	-6 7 3, 6 9 3	-4 3 3, 7 1 9
l l ia b i l i ies To ta t		-1, 7 4 4, 9 2 4	-2, 0 3 4, 4 3 3	-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 299 million. DKK 228 million relate to the building of the new hatchery station.

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 30 June 2018, the Group held the following classes of assets/liabilities measured at fair value:

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

Note 9. APM

- Alternative Performance Measures

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

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

NIBD

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

	3 0 Ju ne	3 1 De c
0 0 0 D K K 1,	2 0 8 1	2 0 1 7
Ca h a d c h e iva len ts s n as qu	2 8 4, 3 2 9	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	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	-7 2 7, 4 7 4	-5 2 4, 9 9 6
in be ing de b Ne t ter t- t es ar	-4 4 3, 1 4 5	-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 2	Q 2	H 1	H 1
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 0 3, 4 5 5	4 9 1, 3 1 7	7 5 4, 9 0 0	5 9 4, 3 6 6
ir v lue d j f b io log ica l Fa tm ts a a us en o ts as se	-3 4, 7 7 7	-5 4, 8 5 3	9 0 -1 4 1, 8	9, 1 7 7 2 4
On tra ts ero us co n c	6, 0 9 1	0 -2 5, 8 7	6, 0 9 1	9 -5 5, 2 1
fro ia Inc tes om e m as so c	1, 6 9 5	2, 3 1 2	-7 2 4	6 0
Re tax ve nu e	3 1, 4 1 1	4 5, 4 6 8	5 7, 7 3 8	7 5, 6 8 0
ion l Op t E B I T era a	0 8 9 3 4 7,	9, 4 5 1 5 7	6 6, 7 1 1 5	9 6 7 4, 1 1

Operational EBIT per kg

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

ROCE

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

	Q 2	Q 2	H 1	H 1
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	4 0 7, 8 9 3	4 5 9, 1 5 7	6 7 6, 1 1 5	7 9 4, 6 1 1
i l loy d Av Ca ta Em era g e p p e	5, 1 3 3, 5 3 8	4, 7 1 0, 0 5 4	4, 4 0 3, 7 8 0	4, 6 9 5, 3 9 5
R O C E	7. 9 %	9. 7 %	1 5. 4 %	1 6. 9 %

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