Bakkafrost P/f

Investor Presentation • May 23, 2017

Q1 2017

BAKKAFROST GROUP Oslo 23 May 2017

• This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document.

SUMMARY OF Q1 2017

• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

HIGHLIGHTS

High prices from 2016 continued into Q1 2017

• Harvested13,158 tgw in Q1 2017 (10,934 tgw in Q1 2016)
• Feed sales of 19,827 tonnes in Q1 2017* (14,454 tonnes in Q1 2016*)
• Raw material purchase of 106,567 tonnes in Q1 2017 (71,568 tonnes in Q1 2016)
• Revenues of DKK 854 million in Q1 2017 (DKK 905 million in Q1 2016)
• Operational EBIT** of DKK 335 million in Q1 2017 (DKK 254 million in Q1 2016)
• Positive results in Farming and FOF segments, while loss in VAP segment

**) EBIT before fair value of biomass, onerous contracts, income from associates, badwill and revenue tax

^*) Including internal sales of 18,953 tonnes in Q1 2017 (13,249 tonnes in Q1 2016)

High operational EBIT and high quarterly results per kg for the Farming segment. The VAP segment had a loss, but the FOF segment had a good result, although down compared to the same quarter last year.

• Farming/VAP increased the margin from 27.55 NOK/kg in Q1 2016 to 29.40 NOK/kg in Q1 2017
• VAP segment delivered a margin of -17.62 NOK/kg in Q1 2017, compared with -10.03 NOK/kg in Q1 2016
• Farming margin was 34.27 NOK/kg in Q1 2017, compared with 30.45 NOK/kg in Q1 2016
• FOF delivered a margin of 16.3% in Q1 2017, compared with 24.0% in Q1 2016
• Group Operational EBIT was DKK 335 million in Q1 2017, compared with DKK 254 million in Q1 2016

( D K K i l l io ) m n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
Op t ing er a re ve nu es	8 4 5	9 0 5	3, 2 0 3	2, 8 0 5
Op ion l E B I T D A t er a a	3 7 7	2 8 2	1, 2 9 8	1, 1 0 9
Op t io l E B I T er a na	3 3 5	2 5 4	1, 1 6 5	1, 0 0 1
f fo Pr i t t he io d o r p er	7 9	2 1 3	1, 3 3 9	8 1 0
Op t ion l E B I T D A in er a a ma rg	4 4. 2 %	3 1. 2 %	4 0. % 5	3 8. 9 %
Op ion l E B I T in t er a a ma rg	3 9. 3 %	2 8. 0 %	3 6. 4 %	3 5. 1 %
Op ion l E B I T / Kg ( Fa ing ) ( N O K ) t er a a rm	3 4. 2 7	3 0. 4 5	3 4. 5 0	1 9. 6 3
Op t ion l E B I T / Kg ( Fa ing d V A P ) ( N O K ) er a a rm a n	2 9. 0 4	2 7. 5 5	2 9. 2 3	2 1. 6 4
Op / ( ) ( O ) t ion l E B I T Kg V A P N K er a a	-1 7. 6 2	1 0. 0 3 -	1 3. 8 2 -	5. 5 8
E B I T D A in ( F is hm l, - i l a d fe d ) ma rg ea o n e	% 1 6. 3	% 2 4. 0	% 2 1. 4	% 1 9. 3

SUMMARY OF Q1 2017

MARKETS AND SALES

• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

MARKETS & SALES

Sales to Europe and Eastern Europe increased, as sales to USA and Asia decreased

• EU market share increased from 38% in Q1 2016 to 46% in Q1 2017
• USA decreased from 22% to 19%
• Asia decreased from 22% to 13%
• Eastern Europe increased from 18% to 22%
• VAP/contract share was 28% in Q1 2017, compared with 23% in Q1 2016

f s To ta l s les lm a o a on by ke ts m ar	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
E U	% 4 6	% 3 8	% 4 3	% 3 6
U S A	1 9 %	2 2 %	2 3 %	1 9 %
As ia	1 3 %	2 2 %	1 % 7	1 % 5
Ea ter Eu s n rop e	2 2 %	1 8 %	1 7 %	3 0 %

Fr h s lm ly es a on o n by ke ts m ar	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
E U	2 9 %	1 9 %	1 9 %	1 1 %
S U A	2 % 5	2 9 %	3 3 %	2 6 %
As ia	1 7 %	2 9 %	2 5 %	2 1 %
Ea Eu ter s n rop e	2 9 %	2 3 %	2 3 %	4 2 %

GLOBAL MARKETS

Undersupply and high salmon prices

• Prices increased 8.3% in market currency (EUR)
• Increased y/y by 3.22 NOK/kg ~5% from 63.64 to 66.86
• Increased q/q by 10.33 NOK/kg ~10% from 56.53 to 66.86

Reduced global supply in Q1 2017

• 6.3% reduced global supply in Q1 2017, compared with Q1 2016, corresponding to 31,600 tonnes
• Market supply was about 475 thousand tonnes (HOG) in Q1 2017, down 3.4% compared to the same quarter last year. When taking into account inventory movements in Q1 2016, the fall in supply was 6.3%

Q1 MARKET ENVIRONMENT

• High prices as fall in supply continued
• Nasdaq Norway price EUR 7.28 in Q1 2017
• 18.3% increase vs. Q1 2016
• 1.5% reduction, compared to Q4 2016
• UB North East US
• 28.7% increase vs. Q1 2016
• 1.9% increase, compared to Q4 2016

M A R K E T C U R R E N C Y	Q 1 2 0 1 7	Q 1 2 0 1 6 C	ha % ng e
Na da No ( E U R ) s q rw ay	7. 2 8	6. 1 5	1 8. 3 %
U B No h Ea U S 1 2- 1 4 l b H O G ( U S D kg ) t t r s p er	9. 5 9	7. 4 5	2 8. 7 %

D K K	Q 1 2 0 1 7	Q 1 2 0 1 6 C	ha % ng e
Na da No s q rw ay	5 4. 0 9	4 5. 8 7	1 7. 9 %
U B No h Ea U S 1 2- 1 4 l b H O G ( kg ) t t r s p er	6 6. 9 7	5 0. 4 7	3 2. 7 %

PRICE NORWAY

Source: Kontali

DEVELOPMENT IN HARVESTED AND SOLD QUANTITY BY ORIGIN

Decreased supply in Q1 2017, compared to Q1 2016

• Global supply down 3.4%
• About 6.3% reduction when including inventory movements (liquidation of Chilean frozen inventory in Q1 2016)
• European supply increased by 2.2%
• Norway higher than expected due to good growth conditions and opportunistic harvesting
• The Faroe Islands down 11.7% due to variation in harvest patterns
• American supply decreased by 14.9%
• Chile down 17.1% due to algae challenges in 2016
• Canada down 8.8% due to variations in harvest patterns

1, 0 0 0 H O G t o n n e s	Q 1 2 0 1 7	Q 1 2 0 1 6	C h % a n g e
N o r a w y	2 4 9. 7	2 4 3. 7	2. % 4
U K	3 8 5.	3 3. 7	% 6. 4
I l d r e a n	3. 3	2. 9	% 1 5. 6
F I l d a r o e s a n s	1 9 4.	1 6. 9	-1 1. 7 %
T t l E o a u r o p e	3 0 3. 8	2 9 7. 2	2. 2 %
C h i l e	1 1 9. 5	1 4 4. 2	1 7. 1 % -
C d a n a a	2 7. 1	2 9. 7	8. 8 % -
U S A	4. 5	3. 6	2 5. 0 %
T l A i t o a m e r c a s	1 1. 1 5	1 7 7. 5	1 4. 9 % -
O h t e r	1 9. 7	1 6. 4	2 0. 3 %
( ) T t l h t d t i t o a a r e s e q a n v u y	4 7 4. 6	4 9 1. 0	-3 4 %
I t t n v e n o r y m o v e m e n s	-1 8	1 3. 4	1 1 3 % -
T t l ( l d t i t ) o a s o q u a n y	4 7 2. 8	5 0 4. 4	% 6. 3 -

SALMON MARKETS, SOLD QUANTITY (HEAD ON GUTTED – HOG)

EU

Some sub geographies and segments shrinking due to high price environment

Russia

• Supplied mainly from the Faroe Islands and Chile
• Both these regions had lower supply in the quarter
• Strong underlying demand

USA

• Supply driven reduction
• Higher than normal imports from Europe

Greater China

No effect of the normalizing diplomatic relationship between Norway and China in the quarter

	Es t im te a	d v lum o es	Q 1 c om p	iso Es t im te ar n a		d v lum o es	F Y c om p ar	iso n
Ma ke ts r	Q 1 2 0 1 7 E	Q 1 2 0 1 6	Vo lum e	%	F Y 2 0 1 6	F Y 2 0 1 5	Vo lum e	%
E U	2 0 6, 2 0 0	2 2 3, 9 0 0	1 7, 7 0 0 -	8 % -	9 4 8, 9 0 0	9 7 9, 2 0 0	3 0, 3 0 0 -	3 % -
U S A	9 8, 6 0 0	1 0 3, 0 0 0	4, 4 0 0 -	4 % -	3 1, 0 0 7 7	3 4, 0 0 0 7	2, 3 0 0 -	1 % -
Ru ia ss	1 3, 3 0 0	1 8, 6 0 0	5, 3 0 0 -	2 8 % -	6 7, 8 0 0	9 5, 7 0 0	2 7, 9 0 0 -	2 9 % -
Ja p an	1 3, 8 0 0	1 4, 9 0 0	1, 1 0 0 -	7 % -	5 8, 7 0 0	5 4, 5 0 0	4, 2 0 0	8 %
Gr C ter h ina ea	2 1, 2 0 0	2 4, 8 0 0	3, 6 0 0 -	% 1 5 -	9 4, 7 0 0	9 8, 0 0 0	3, 3 0 0 -	% 3 -
A S E A N	2 0, 9 0 0	1 8, 5 0 0	2, 4 0 0	1 3 %	6 4, 5 0 0	6 5, 5 0 0	1, 0 0 0 -	2 % -
La in Am ica t er	3 4, 0 0 7	4 3, 0 0 7	9, 0 0 0 -	2 1 % -	1 3 4 0 0 7,	1 8, 8 0 0 5	2 1, 4 0 0 -	1 3 % -
U kra ine	3, 0 0 0	2, 3 0 0	7 0 0	3 0 %	9, 0 0 0	9, 0 0 0	0	0 %
O he ke t ts r m ar	6 1, 1 0 0	5 4, 7 0 0	6, 4 0 0	1 2 %	2 3 8, 1 0 0	2 4 4, 8 0 0	6, 7 0 0 -	3 % -
To ta l a l l m ke ts ar	4 7 2, 8 0 0	5 0 4, 4 0 0	3 1, 6 0 0 -	6. 3 % -	1, 9 9 0, 8 0 0	2, 0 7 9, 5 0 0	8 8, 7 0 0 -	4. 3 % -

Comments:

Greater China = China / Hong Kong / Taiwan (incl. estimated re‐export from Vietnam) ASEAN = Association of Southeast Asian Nations (estimated re‐export from Vietnam subtracted) Latin America (including both Mexico and Caribbean + domestic consumption in Chile) All figures above are in tonnes hog, and are rounded to the nearest 100 tonnes.

Salmon markets, sold quantity (head on gutted - HOG)

Salmon markets, sold quantity (head on gutted - HOG)

Supply increase coming quarters between 4 and 11% y/y

Assumption of challenging biology in Norway

Upside potential to estimates if biology performs better than expected

Increased supply from Chile

2016 impacted by mass mortality due to Algae bloom

SUPPLY - TOTAL SUPPLY - TOTAL

SUPPLY - AMERICAS

Source: Kontali

• SUMMARY OF Q1 2017
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

Harvested volumes

• In Q1 2017, 69% of harvested volume came from the North and 31% from the West region
• Harvested volumes increased by 20% in Q1 2017, compared with Q1 2016

Smolt transfer

Bakkafrost transferred 1.4 million smolts in Q1 2017 (1.9 million smolts in Q1 2016)

Seawater temperatures in the Faroe Islands

Temperatures in Q1 2017 were in average 7.1o C, compared with 6.3o C in Q1 2016

H t V l a r v e s o u m e s [ H O G ] t o n n e s	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
N t h R i o r e g o n	9, 1 2 4	1, 0 9 5	2 6 8 4, 7	2 6 1 9 7,
W R i t e s e g o n	4, 0 3 4	9, 4 2 5	2 2, 4 7 7	2 2, 9 4 6
T t l o a	1 3, 1 5 8	1 0, 9 3 4	4 7, 5 4 2	5 0, 5 6 5

Seawater Temperatures in the Faroe Islands 2003 – 2016 [°C]

BAKKAFROST / Q1 2017 PRESENTATION

Strong performance with some challenges

• The operational EBIT increased 43% from DKK 261 million in Q1 2016 to DKK 373 million in Q1 2017
• Good biological performance of harvested fish and high prices
• Confirmation of ISA-virus at A-73 Hvannasund Norður
• Resulted in accelerated harvest of fish at A-73 Hvannasund Norður, which ended 12 April 2017 when the farming site was emptied
• The average size of the harvested fish was just below 3 kg (gw)

( D K K i l l i ) m o n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
O t i p e r a n g r e v e n u e s	1 7 5	0 2 7	2, 8 1 4	2, 2 7 4
O t i l E B I T p e r a o n a	3 3 7	2 6 1	1, 3 1 5	8 1 4
O t i l E B I T i p e r a o n a m a r g n	% 5 0	% 3 7	% 4 6	% 3 7

Operation

• Farming EBIT of NOK 34.27 per kg in Q1 2017, compared to 30.45 in Q1 2016
• High prices and good biological performance
• Performance in North Region negatively affected by the early harvest at A-73, as harvest weight was not optimal

34.2730.4534.5019.630.005.0010.0015.0020.0025.0030.0035.0040.00Q1 2017 Q1 2016 2016 2015

( O / ) N K k g	Q 1 2 0 1 7
	N t h o r R i e g o n	W t e s R i e g o n	F i a r m n g
O / t i l E B I T k p e r a o n a g g w	3 2. 3 7	3 8. 5 5	3 4. 2 7

Margin - EBIT per kg total harvested quantity [NOK/kg]

VAP revenues and margin

• Revenues increased by 7% to DKK 192 million in Q1 2017, from DKK 180 million in Q1 2016
• Operating EBIT in Q1 2017 was DKK -53 million, compared with DKK -25 million in Q1 2016
• The closing of the old VAP factories and the start in the new VAP factory in Glyvrar in January 2017 have increased operational costs in Q1 2017
• Bakkafrost expects reduced operational costs later in 2017, after the start up issues have been solved.

( D K K i l l i ) m o n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
O t i p e r a n g r e v e n u e s	1 9 2	1 8 0	8 8 1	7 3 7
O i l E B I T t p e r a o n a	5 3 -	2 5 -	2 0 1 -	8 6
O t i l E B I T i p e r a o n a m a r g n	2 8 % -	1 % 4 -	2 3 % -	1 2 %
V A P d d l p r o u c e v o u m e s ( ) t g w	3, 6 3 6	3, 1 6 0	1 8, 1 2 0	1 8, 1 9 6

High activity and satisfactory performance Fishmeal, Oil and Feed

• EBITDA DKK 45 million in Q1 2017, compared with DKK 69 million in Q1 2016
• EBITDA margin of 16.3% in Q1 2017, compared with 24.0% in Q1 2016
• Feed sales increased 37% in Q1 2017, compared to Q1 2016, and fishmeal sales decreased 35%

( D K K i l l i ) m o n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
O i t p e r a n g r e e n e s v u	2 7 7	2 8 8	1, 1 8 5	1, 0 4 8
E B I T D A	4 5	6 9	2 4 8	2 0 2
E B I T D A i m a r g n	1 6. 3 %	2 4. 0 %	2 1. 4 %	1 9. 3 %
F d l d ( t ) * e e s o o n n e s	1 9, 8 2 7	1 4, 4 5 4	8 4, 5 8 7	7 8, 8 6 5
F i h l l d l ( ) t t s m e a s o e x e r n a o n n e s	6 3 7, 5	1 1, 1 6 7	2 3, 4 6 1	2 3, 2 2 6

High sourced raw material this quarter

Havsbrún sourced 106,567 tonnes of raw material in Q1 2017, compared with 71,568 tonnes in Q1 2016

*Including sales to Bakkafrost, corresponding to ~96% of feed volumes in Q1 2017 (Q1 2016: 92%)

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED

Feed sales higher

• Quantity of feed sold was 19,827 tonnes in Q1 2017, compared with 14,454 tonnes in Q1 2016
• Faroe Farming being part of Bakkafrost Group has increased the share of internal feed sales

Market prices on the spot market in Q1 2017 for marine ingredients at the same level as in Q1 2014

• Fishmeal prices decreased in Q1 2017, compared with Q4 2016
• Fish oil prices decreased in Q1 2017, compared with Q4 2016

Volumes of raw material purchase and feed sale [tonnes]

FISHMEAL

FISH OIL

Source: Holtermann

• SUMMARY OF Q1 2017
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

GROUP PROFIT AND LOSS

• Revenues decreased from DKK 905 million in Q1 2016 to DKK 854 million in Q1 2017. Lower external revenue in the FOF segment
• Operational EBIT increased from DKK 254 million to DKK 335 million
• Fair value of biomass decreased due to lower prices, compared to the end of last quarter
• Provision for onerous contracts was DKK 30 million due to the lower salmon prices at the end of Q1 2017
• Revenue tax (4.5% of harvested volumes at Nasdaq prices) recognized as cost, amounted to DKK -30 million
• Financial items amounted to DKK -6 million, whereof DKK 3.5 million is related to the NOK bond loan
• Taxes amounted to DKK -18 million
• Profit after tax decreased from DKK 213 million in Q1 2016 to DKK 79 million in Q1 2017

( ) D K K i l l i m o n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
O ing t p e ra re ve nu e s	8 4 5	9 0 5	3, 2 0 3	2, 8 0 5
O t io l E B I T D A * p e ra na	3 7 7	2 8 2	1, 2 9 8	1, 1 0 9
O io l E B I T * t p e ra na	3 3 5	2 4 5	1, 1 6 5	1, 0 0 1
Fa ir lu d j t t f b io lo ic l a t va e a s m e n o g a s s e s u	-2 3 5	1 0 8	6 0 8	2 8 -
O t t ne ro u s c o n ra c s	3 0	6 0 -	1 6 -	1 5 -
In fro ia t c o m e m a s s o c e s	2	3	1 5	7
Re t ve nu e ax	-3 0	2 3 -	1 0 8 -	0
Ba dw i l l	0	0	1 0	0
E B I T	1 0 3	2 8 2	1, 6 7 4	9 2 9
Ne F ina ia l i t t nc e m s	-6	2 2 -	4 1 -	4 -
E B T	9 7	2 6 0	1, 6 3 3	9 2 4
Ta xe s	-1 8	4 7 -	2 9 4 -	1 1 4 -
Pr f i fo he io d t t o r p e r	7 9	2 1 3	1, 3 3 9	8 1 0
O t io l E B I T D A in p e ra na m a rg	% 4 4. 2	% 3 1. 2	% 4 0. 5	% 3 8. 9
O io l E B I T in t p e ra na m a rg	3 9. 3 %	2 8. 0 %	3 6. 4 %	3 1 % 5.
O t io l E B I T / kg ( Fa ing d V A P ) ( N O K ) p e ra na rm an	2 9. 4 0	2 7. 5 5	2 9. 2 3	2 1. 6 4
E B I T D A in ( f is hm l, - i l a d fee d ) m a rg ea o n	1 6. 3 %	2 4. 0 %	2 1. 4 %	1 9. 3 %

* Operational EBITDA and EBIT adjusted for fair value adjustment of biomass, onerous contracts, income from associates, badwill and revenue tax.

BALANCE SHEET

• Intangible assets at the end of Q1 2017 are unchanged from Q4 2016
• Investments in PPE of DKK 179 million in Q1 2017
• Financial assets amount to DKK 62 million.
• The carrying amount of biological assets amount to DKK 1,645 million, whereof fair value adjustment amounts to DKK 646 million
• Inventory increased DKK 66 million from the end of 2016 to DKK 422 million at the end of Q1 2017
• Changes in equity because of positive results in the period
• NIBD at DKK 459 million down from DKK 635 million at end 2016*
• Equity ratio 65% (Covenants 35%)
• * Incl. unrealized exchange gain, losses and deposits on financial derivatives related to the debt

( ) D K K i l l i m o n	Q 1 2 0 1 7	E d 2 0 1 6 n
I i b l t t n a n g e a s s e s	3 7 7	3 7 7
P l d i t t t r o p e r p a n a n e q p m e n y, u	2, 2 5 6	2, 1 1 8
F i i l t n a n c a a s s e s	6 2	5 9
L t i b l o n g e r m r e c e v a e s	0	1 3
B i l i l t o o g c a a s s e s	1, 6 4 5	1, 8 5 8
I t n v e n o r y	4 2 2	3 5 6
R i b l e c e v a e s	2 3 5	2 9 2
O h i b l t e r r e c e a e s v	1 0 9	1 1 0
C h d h i l t a s a n c a s e q a e n s u v	4 9 9	2 3 5
T t l A t o a s s e s	6 2 3 5,	4 1 8 5,
E i t q u y	3, 6 2 8	3, 5 4 9
D f d t d t h t e e r r e a x a n o e r a x e s	5 6 2	5 4 6
L -t i t t b i d b t o n g e r m n e r e s e a r n g e	5 0 7	8 2 7
F i i l d i t i n a n c a e r v a v e s	1 0 5	1 0 1
S h i b i d b t- t t t t o r e r m n e r e s e a r n g e	4 0 5	0
A d h b l t t c c o u n s a n o e r p a y a e s	4 1 6	3 9 5
T l E i d L i b i l i i t t t o a q u y a n a e s	6 2 3 5,	4 1 8 5,

CASH FLOW

• Cash flow from operations higher in Q1 2017, compared to Q1 2016, due to improved operations, changes in receivables and changes in working capital
• Cash flow from investments represents investments in PPE
• Cash flow from financing is affected positively by change in interest bearing debt

Financing end Q1 2017

• Total funding to ~ DKK 1,301 million
• NIBD: DKK 459 million
• Undrawn loan facilities: DKK 826 million

( D K K i l l i ) m o n	Q 1 2 0 1 7	Q 1 2 0 1 6	2 0 1 6	2 0 1 5
C h f l f i t a s o w r o m o p e r a o n s	3 6 5	2 4 4	8 5 0	7 6 8
C h f l f i t t a s o w r o m n v e s m e n s	1 7 9 -	1 1 9 -	7 4 0 -	6 0 2 -
C f f f h l i i a s o r o m n a n c n g w	8 7	9 4	2 4	0 4 7 -
N h i h t e c a n g e n c a s	2 6 4	2 1 9	1 3 3	3 0 3 -
C h t t h d f t h i d a s a e e n o e p e r o	4 9 9	3 2 1	2 3 5	1 0 2
U d f i l i t i n r a w n a c e s	8 2 6	1, 0 7 4	6 5 5	8 9 0

NIBD and available funding

• SUMMARY OF Q1 2017
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS

OUTLOOK

APPENDIX

OUTLOOK

Market

Global supply in 2017 expected to increase only around 2%, compared to 2016

Farming

• Bakkafrost expects to harvest 53,500 tonnes in 2017
• Expected smolt release in 2017 total 11.5 million pieces

VAP

Contracted around 39% of expected harvest for the rest of 2017

Fishmeal, -oil and feed

Forecast for feed sales in 2017 is 85,000 tonnes

Business development

• Optimizing of the value chain according to the announced investment plan continues
• Pursuing organic growth

• Financial flexibility enables M&A

• SUMMARY OF Q1 2017

• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

DEVELOPMENT IN HARVESTED AND SOLD QUANTITY BY ORIGIN

Tight supply situation for 2017

• Total supply growth, sold quantity, is expected to be -1%, as inventories are reduced in 2016
• Both Norway and Chile are expected to have only minor changes of supply from 2016 to 2017
• Much will be up to development of biology in 2017:
• How the new veterinary system will work in Chile
• How biology will develop in Norway, average harvesting weight, mortality, sea lice situation, problems with diseases etc.
• Unexpected scenarios

However, different situation in H2, compared with H1-2017

10% reduced supply in Q1-2017 will change to between 5-6% global increase in supply per quarter from Q2 to Q4-2017

Notes:

All figures are in hog-equivalents and thousand tonnes.

Figures represent sold quantity of Atlantic Salmon from each producing country

So	Ko
urc	nta
e:	li

G lo ba l Su ly f A lan ic Sa lm ( he d o d - H O G ) t t t te p p o on a n g u
	2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6 E	2 0 1 E 7
No rw ay	1, 0 2 9	1, 0 7 9	1, 1 1 1	1, 0 5 4	1, 0 5 9
U K	1 4 2	1 5 3	1 5 0	1 4 2	1 5 2
Ire lan d	1 0	1 1	1 4	1 3	1 5
Fa roe s	6 5	7 4	6 8	7 0	7 2
To ta l Eu ro p e	1, 2 4 6	1, 3 1 8	1, 3 4 3	1, 2 7 9	1, 2 9 8
C h i le	4 2 1	5 2 5	5 3 8	4 5 4	4 7 0
Ca da na	1 0 4	8 6	1 2 2	1 2 8	1 2 3
U S A	1 8	2 2	1 8	2 0	2 0
To ta l Am ica er s	5 4 3	6 3 2	6 7 8	6 0 2	6 1 2
O he t r	8 4	5 5	6 5	6 6	0 7
( ) l d q i To Ha ta te t ty rve s ua n	8 3 1, 7	2, 0 0 5	2, 0 8 6	9 1, 4 7	9 8 1, 1
C ha in inv tor ng e en y	4	2 0	6	6 4 -	0
To l ( So l d Qu i ) ta t ty an	1, 8 3 3	1, 9 8 5	2, 0 8 0	1, 9 9 3	1, 9 8 1
Su ly t h - Ha te d q t i ty p p g row rve s ua n	2 %	9 %	4 %	7 % ‐	2 %
Su ly t h - Eu p p g row rop e	3 % -	6 %	2 %	5 % -	1 %
Su ly t h - Am ica p p g row er s	1 6 %	1 6 %	7 %	1 1 % -	2 %
Su So Qu ly t h - l d t i ty p p g row an	2 %	8 %	5 %	4 % ‐	1 % ‐

Salmon Markets (head on gutted - HOG)

	2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6 E	2 0 1 7 E
E U	8 3 9	9 1 6	9 7 9	9 4 8	9 4 6
U S A	3 0 9	3 3 1	3 7 4	3 7 2	3 8 6
Ja p an	5 3	5 8	5 4	5 8	5 8
Ru ia ss	1 4 6	1 3 1	9 6	6 7	6 0
he O t rs	4 8 5	5 5 0	5 7 7	5 4 6	5 3 1
( So Qu ) To ta l l d t i ty an	1. 8 3 3	1. 9 8 6	2. 0 8 0	1. 9 9 2	1. 9 8 2

Investments will be made step by step in the relevant parts of the value chain to secure:

• Biological risk
• Efficiency
• Organic growth

Investment program of DKK 2.2b from 2016 to 2020

Fishmeal, Oil & Feed (380 mDKK)

• New salmon meal and –oil plant
• New feed line to increase capacity
• Advanced feed line capabilities

Smolt (1,130 mDKK)

• Viðareiði 2016 – finalizing facility
• Strond 2018 – new facility
• New site 2019
• Upgrade existing facilities 2019-2020

Harvest/VAP Finalizing new plant (160 mDKK)

• Consolidating fragmented processing structure into one state of the art facility
• Represents large efficiency benefits
• Improves capability of extracting benefits of a premium product in the fresh category

5905703604102802016 2017 2018 2019 2020 Farming Hatcheries Harvest/VAP FOF Investment Programme 2016 – 2020 (mDKK)

Results in

• •reduced biological risk
• •opportunities for organic growth
• •better usage of off-cuts from the salmon production
• •5-6 years pay back on investments

DEVELOPMENT PER QUARTER Q1 2014 – Q1 2017

( D K K ) m	Q 1 2 0 1 7	Q 4 2 0 1 6	Q 3 2 0 1 6	Q 2 2 0 1 6	Q 1 2 0 1 6	Q 4 2 0 1 5	Q 3 2 0 1 5	Q 2 2 0 1 5	Q 1 2 0 1 5	Q 4 2 0 1 4	Q 3 2 0 1 4	Q 2 2 0 1 4	Q 1 2 0 1 4
Re ve nu e	8 5 4	8 6 8	6 4 0	7 9 0	9 0 5	7 6 0	6 7 7	8 0 0	6 1 3	7 5 7	5 8 4	7 1 1	6 3 1
O io l E B I T t p e ra na	3 3 5	3 0 5	2 5 5	3 0 7	2 4 5	2 5 7	2 0 6	3 0 3	2 3 5	2 2 7	2 0 9	2 1 2	1 8 6
Pr f i / Lo t o s s	9 7	5 5 5	3 4 7	2 2 4	2 1 3	3 1 9	1 6 8	1 9 1	1 3 2	2 2 2	2 1 1	1 2 6	8 7
( ) Ha t t rv e s g w	1 3, 1 5 8	1 2, 9 4 0	1 0, 6 6 4	1 3, 0 0 4	1 0, 9 3 4	1 3, 6 7 5	1 2, 9 8 2	1 4, 1 8 2	9, 7 2 6	1 2, 6 5 1	1 0, 8 8 1	1 1, 2 1 2	9, 2 6 9
O & ( O / ) E B I T Fa ing V A P N K kg p. rm	2 9. 4 0	3 2. 0 0	2 8. 9 7	2 7. 8 8	2 7. 5 5	2 1. 8 3	1 8. 1 0	2 2. 6 2	2 6. 1 2	1 9. 4 8	1 9. 7 3	1 7. 6 6	2 1. 3 7
Eq i ty t io ra u	6 5 %	6 6 %	6 3 %	6 1 %	6 6 %	6 6 %	6 3 %	6 1 %	6 1 %	6 0 %	5 7 %	5 3 %	5 7 %
N I B D	4 5 9	6 3 5	5 0 4	6 0 3	2 1 8	3 9 1	1 8 2	3 0 2	2 2 7	2 3 3	3 5 7	5 5 5	5 0 3

Turnover for the Bakkafrost Group has increased from 820 mDKK in 2010 to 3.2 bDKK in 2016.

Operational EBIT for the Bakkafrost Group has increased from 247 mDKK in 2010 to 1.2 bDKK in 2016.

The margin in Farming was NOK 34.50 per kg in 2016.

The margin in VAP was NOK -13.82 per kg in 2016.

FAROE ISLANDS

• 18 islands – 1,387 km²
• 50,045 inhabitants (April 2017)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)
• Key sectors (% of wage earners, 2014)
• Service/public admin.: ~40%
• Private service: ~31%
• Construction: ~12%
• Fishing : ~17%
• Unemployment rate (Nov 2016): 2.5%
• Total working force (Nov 2016): 25,494
• GDP: DKK 14.7bn (2013)
• GDP/capita: DKK 305,000 (2013) (Norway: DKK 360,000) (2013)

Total export of fish products (10M-2016) 15% increased

• DKK 6,181 million (10M-2015 5,384 mDKK)
• whereof farmed fish accounts for 48%

TAXES

• Total percent of GDP: 42.4% (2013)
• Corporate tax: 18%
• Farming revenue tax : 4.5% of revenues from 1. Jan 2016 more details see page 44 in Bakkafrost presentation CMD June-2016
• Restriction on single foreign ownership of 20% in farming companies
• One company may max. control 50% of licences in the Faroe Islands Source: Hagstova Føroya

Dividend

• Dividend for 2016 of DKK 8.70 (NOK 10.36) per share to be paid in Q2 2017

Dividend policy

• Competitive return through:
• Dividends
• Increase in the value of the equity
• Generally, Bakkafrost shall pay dividend to its shareholders
• A long-term goal is that 30–50% of EPS shall be paid out as dividend

* Adj. EPS is EPS adjusted for fair value adjustment of biomass and onerous contracts

• ** Dividend and acquisition of treasury shares
• *** Dividend is paid out the following year

Dividend per share in % of adj. EPS *

Dividend per share (DKK) ***

LARGEST SHAREHOLDERS

20 largest shareholders

÷ No of shares		÷ Account name	÷. type	÷ Citizens
4.594.437	$9.4\%$	Jacobsen Oddvør		FRO
4.493.920	9.2%	JACOBSEN JOHAN REGIN		FRO
3.675.569	7,5%	Nordea Bank AB Denmark Branch, CCA	NOM	DNK
2.868.321	5.9%	FOLKETRYGDFONDET		NOR
1.367.708	2,8%	CLEARSTREAM BANKING	NOM	LUX
1.073.369	2,2%	VERDIPAPIRFONDET DNB		NOR
1.069.369	2.2%	SWEDBANK ROBUR SMABO NORDEN		SWE
897.689	1.8%	JPMorgan Chase Bank, S/A NON-TREATY LENDI	NOM	GBR
837.056	1,7%	Skandinaviska Enskil SEB AB, UCITS V - Sw	NOM	SWE
794.632	1.6%	State Street Bank an A/C EXEMPT LUX REGI	NOM	USA
745.110	1,5%	VERDIPAPIRFONDET HAN NORGE		NOR
700,000	1,4%	NORDEA NORDIC FUND		FIN
490.987	$1.0\%$	VERDIPAPIRFONDET ALF		NOR
478.139	$1.0\%$	UBS Switzerland AG A/C OMNIBUS-DISCLOSE	NOM	CHE
456.389	0.9%	KLP AKSJENORGE INDEK		NOR
429.555	0.9%	STOREBRAND NORGE I V JPMORGAN EUROPE LTD.		NOR
427.631	0.9%	The Bank of New York c/o BNYMSANV RE 1098	NOM	BEL
410.445	0.8%	JPMorgan Chase Bank, A/C VANGUARD BBH LEN	NOM	USA
397.268	0.8%	SEB NORDENFOND Skandinaviska Enskil		SWE
396.170	0.8%	State Street Bank an S/A SSB Client OY59	NOM	USA
26.603.764	54,5%
48.858.065		100 Total number of shares as per 18. Apr 2017
263.587		0.7 Wherof own shares
48.594.478		99,3 Total number of outstanding shares

12 months development NOK/shareTraded daily

Share development

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BAKKAFROST / Q1 2017 PRESENTATION

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