Bakkafrost P/f

Investor Presentation • May 10, 2016

Q1 2016

BAKKAFROST GROUP Oslo 10 May 2016

• 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 2016

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

HIGHLIGHTS

High spot prices – positive for Farming, negative for VAP

• Harvested 10,934 tgw in Q1 2016 (9,726 tgw in Q1 2015)
• Feed sales of 14,454 tonnes in Q1 2016* (14,400 tonnes in Q1 2015*)
• Revenues of DKK 905 million in Q1 2016 (DKK 613 million in Q1 2015)
• Operational EBIT** of DKK 254 million in Q1 2016 (DKK 235 million in Q1 2015)
• Positive results in Farming and FOF segments, while loss in VAP segment
• Ambitious hatchery investment announced with a new DKK 650 million facility

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

Positive results in Farming and FOF segments, but negative result in VAP segment

• Farming/VAP division increased margin from 26.12 NOK/kg in Q1 2015 to 27.55 NOK/kg in Q1 2016
• VAP segment delivered a margin of -10.03 NOK/kg in Q1 2016, compared with 5.66 NOK/kg in Q1 2015
• Farming margin was 30.45 NOK/kg in Q1 2016, compared with 23.49 NOK/kg in Q1 2015.
• FOF delivered a margin of 24.0% in Q1 2016, compared with 30.5% in Q1 2015
• Group Operational EBIT was DKK 254 million in Q1 2016, compared with DKK 235 million in Q1 2015

(DKK million)	Q1 2016	Q1 2015	2015	2014
Operating revenues	905	613	2,850	2,683
Operational EBITDA	282	261	1,109	931
Operational EBIT	254	235	1,001	834
Profit for the period	213	132	810	647
Operational EBITDA margin	31.2%	42.6%	38.9%	34.7%
Operational EBIT margin	28.0%	38.3%	35.1%	31.1%
Operational EBIT/Kg (Farming) (NOK)	30.45	23.49	19.63	17.65
Operational EBIT/Kg (Farming and VAP) (NOK)	27.55	26.12	21.64	19.43
Operational EBIT/Kg (VAP) (NOK)	-10.03	5.66	5.58	3.69
EBITDA margin (Fishmeal, -oil and feed)	23.97%	30.53%	19.28%	18.70%

SUMMARY OF Q1 2016

MARKETS AND SALES

• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

GLOBAL MARKETS

Very high market price for salmon

• The NASDAQ salmon price for size 4-5
• Increased y/y Q1 2016 / Q1 2015 by ~43% - by 17.95 NOK/kg from 41.43 to 59.38
• Increased q/q Q1 2016 / Q4 2015 by ~27% - by 12.68 NOK/kg from 46.70 to 59.38

Supply growth

3.8% global supply growth in Q1 2016, compared with Q1 2015, corresponding to 18,500 tonnes

Spot prices (NASDAQ) on superior 4-5 [NOK/kg HOG]

Change in global market supply and market price

MARKETS & SALES

Good market diversification

• EU similar market share in Q1 2016, compared with Q1 2015
• USA increased from 18% to 22%
• Asia increased from 8% to 22%
• Eastern Europe decreased from 35% to 18%
• VAP/contract share was 23% in Q1 2016, compared with 46% in Q1 2015

Total sales of salmon by markets	Q1 2016	Q1 2015	2015	2014
EU	38%	39%	36%	45%
USA	22%	18%	19%	19%
Asia	22%	8%	15%	16%
Eastern Europe	18%	35%	30%	20%

Fresh salmon only by markets	Q1 2016	Q1 2015	2015	2014
EU	19%	7%	11%	11%
USA	29%	28%	26%	31%
Asia	29%	12%	21%	27%
Eastern Europe	23%	53%	42%	31%

3.8% supply increase in Q1 2016

The supply increase in Q1 2016 increased 18,500 tonnes HOG

6% reduced supply expected in 2016

• The reduction in volume expectations in 2016 is mainly due to reduced supply from Norway (44kt) and Chile (83kt)
• Biological issues and fully utilized licenses are the main constraints for further growth
• Similar supply from Faroe Islands expected in 2016 as in 2014

Increased supply in Q1-2016 of Atlantic Salmon (head on gutted - HOG)

	Estimated volumes		Q1 comparison		Estimated volumes		YTD comparison
Markets	Q1 2016E	Q1 2015	Volume	%	2015	2014	Volume	%
EU	221.300	221.800	-500	0%	978.400	914.900	63.500	7%
USA	101.300	89.900	11.400	13%	374.000	330.500	43.500	13%
Russia	20.400	18.400	2.000	11%	98.600	132.200	-33.600	-25%
Japan	14.400	11.100	3.300	30%	54.500	57.600	-3.100	-5%
Greater China	22.600	23.500	-900	-4%	98.200	96.800	1.400	1%
ASEAN	19.800	17.700	2.100	12%	65.700	63.000	2.700	4%
Latin America	44.100	41.900	2.200	5%	160.300	145.000	15.300	11%
Ukraine	2.000	2.000	0	0%	9.100	16.100	-7.000	-43%
Other markets	54.100	55.200	-1.100	-2%	235.000	228.000	7.000	3%
Total all markets	500.000	481.500	18.500	3,8 %	2.073.800	1.984.100	89.700	4,5 %

Global supply of Atlantic Salmon (head on gutted - HOG) Source: Kontali 2012 2013 2014 2015E 2016E Norway 1.066 1.029 1.076 1.112 1.068 UK 143 142 153 150 154 Ireland 14 10 11 14 15 Faroes 65 66 75 69 73 Total Europe 1.288 1.247 1.316 1.345 1.309 Chile 318 418 510 531 448 Canada 123 104 86 122 123 USA 18 18 22 18 18 Total Americas 459 539 617 671 590 Other 45 47 51 57 59 Total (Sold Quantity) 1.792 1.833 1.984 2.073 1.958 Supply growth - Global 22% 2% 8% 5% -6% Supply growth - Europe 16% -3% 6% 2% -3% Supply growth - Americas 43% 18% 14% 9% -12%

3.8% increased sales in global markets

• Total quantity increased 18,500 tonnes in the quarter, compared with last year, corresponding to 3.8%
• All markets will suffer in 2016 with availability of salmon
• The difference in market prices in different regions will be a key driver in this development

Demand - split by markets, sold quantity (head on gutted - HOG)

	Estimated volumes			Q1 comparison	Estimated volumes		YTD comparison
Markets	Q1 2016E	Q1 2015	Volume	%	2015	2014	Volume	%
E U	221.300	221.800	-500	0%	978.400	914.900	63.500	7%
USA	101.300	89.900	11.400	13%	374.000	330.500	43.500	13%
Russia	20.400	18.400	2.000	11%	98.600	132.200	-33.600	-25%
Japan	14.400	11.100	3.300	30%	54.500	57.600	-3.100	-5%
Greater China	22.600	23.500	-900	-4%	98.200	96.800	1.400	1%
ASEAN	19.800	17.700	2.100	12%	65.700	63.000	2.700	4%
Latin America	44.100	41.900	2.200	5%	160.300	145.000	15.300	11%
Ukraine	2.000	2.000	0	0%	9.100	16.100	-7.000	-43%
Other markets	54.100	55.200	-1.100	-2%	235.000	228.000	7.000	3%
Total all markets	500.000	481.500	18.500	3,8 %	2.073.800	1.984.100	89.700	4,5 %

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

	2012	2013	2014	2015E	2016E
EU	842	839	915	978	946
USA	294	308	330	374	355
Japan	57	53	58	54	52
Russia	154	144	132	99	79
Others	445	489	549	568	526
Total (Sold Quantity)	1.792	1.834	1.984	2.074	1.959

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.

Source: Kontali

• SUMMARY OF Q1 2016
• MARKETS AND SALES

SEGMENT INFORMATION

• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

Harvested volumes

• Harvested volumes increased by 12% in Q1 2016, compared with Q1 2015
• The West region harvested 86% of the total quantity in the quarter. Split in West was Sundalagið 70% and A-57 Fuglafjørður 30%. The North region harvested 14% of the total quantity – from A-72 Haraldssund.

Smolt transfer

• Bakkafrost transferred 1.9 million smolts in Q1 2016 (2.2 million smolts in Q1 2015)
• The plan is to transfer 10.4 million smolts in 2016

Seawater temperatures in the Faroe Islands

Temperatures in Q1 2016 were 0.2°C lower than last year

Harvest Volumes tonnes [HOG]	Q1 2016	Q1 2015	2015	2014
West	9,425	2,541	22,946	18,342
North	1,509	7,185	27,619	25,671
Total	10,934	9,726	50,565	44,013

High prices and good margin

• The operational EBIT increased 34% from DKK 195 million in Q1 2015 to DKK 261 million in Q1 2016
• Good biological performance of harvested fish
• Average harvest weight per fish 5,32 kg in Q1-2016 compared with 5,05 kg in Q1-2015
• Sundalagið finished harvest last week, now started in Haraldssund

(DKK million)	Q1 2016	Q1 2015	2015	2014
Operating revenues	702	471	2,274	2,099
Operational EBIT	261	195	841	694
Operational EBIT margin	37%	41%	37%	33%

Operation

• Farming EBIT of NOK 30.45 per kg in Q1 2016, compared to 23.49 in Q1 2015
• High prices and satisfying biological performance
• Farming West harvested throughout the quarter, and Farming North harvested late in the quarter

30,45 23,49 19,63 17,65 0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 Q1 2016 Q1 2015 2015 2014

(NOK/kg)	Q1 2016
	Farming North	Farming West	Farming
Operational EBIT/kg gw	35.41	29.66	30.45

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

VAP revenues and margin

• Revenues reduced by 5% to DKK 180 million in Q1 2016 from DKK 190 million in Q1 2015
• Lower inventory of goods for sale by end Q1 2016 than by end Q4 2015
• Operating EBIT in Q1 2016 DKK -25 million, compared with DKK 22 million in Q1 2015
• Contracts not reflecting recent development in spot prices
• 25% contract share of total volumes for rest of 2016

(DKK million)	Q1 2016	Q1 2015	2015	2014
Operating revenues	180	190	737	913
Operational EBIT	-25	22	86	70
Operational EBIT margin	-14%	12%	12%	8%
VAP produced volumes (tgw)	3,160	4,575	18,196	21,196

Margin - EBIT per kg total VAP produced [NOK/kg]

Fishmeal, Oil and Feed
(DKK million)	Q1 2016	Q1 2015	2015	2014
Operating revenues	288	205	1,048	971
EBITDA	69	63	202	182
EBITDA margin	24.0%	30.5%	19.3%	18.7%
Feed sold (tonnes)*	14,454	14,400	78,865	85,724
Fishmeal sold external (tonnes)	11,716	5,351	23,226	16,999
Fish Oil sold external (tonnes)	5	1	14	3,374

Good margin

• EBITDA DKK 69 million in Q1 2016, compared with DKK 63 million in Q1 2015
• EBITDA margin of 24.0% in Q1 2016, compared with 30.5% in Q1 2015

Good sourcing situation

Havsbrún sourced 71,568 tonnes of raw material in Q1 2016, compared with 75,003 tonnes in Q1 2015

*Including sales to Bakkafrost, corresponding to ~92% of feed volumes in Q1 2016 (Q1 2015: 86%)

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED

Feed sales unchanged and fishmeal increased

• Quantity of feed sold was 14,454 tonnes in Q1 2016, compared with 14,400 tonnes in Q1 2015
• Internal feed sales increased and external feed sales decreased
• Double external sales of fishmeal in Q1 2016, compared with Q1 2015

Market prices on fishmeal decrease and -oil increased

• Similar to Q1 2015, the market prices for fishmeal decreased, while fish oil increased in Q1 2016
• Similar level in Q1 2016 as in Q1 2015, slightly lower

Volumes of raw material purchase and feed sale [tonnes]

BAKKAFROST / Q1 PRESENTATION 2016 Page 17

• SUMMARY OF Q1 2016
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

GROUP PROFIT AND LOSS

• Revenues of DKK 905 million. Higher harvested volumes, higher spot prices and higher sales in FOF, but lower VAP volumes
• Operational EBIT increased from DKK 235 million to DKK 254 million
• Increase in fair value of biomass due to higher spot prices at the end of Q1 2016
• Revenue tax (4.5% of harvested volumes at Nasdaq prices) recognised as cost, amounted to DKK -23 million
• Provision for onerous contracts DKK -60 million due to high spot prices at the end of Q1 2016
• Financial items negative by DKK 22 million
• Taxes amounted to DKK -47 million
• Profit after tax increased from DKK 132 million in Q1 2015 to DKK 213 million in Q1 2016

(DKK million)	Q1 2016	Q1 2015	2015	2014
Operating revenues	905	613	2,850	2,683
Operational EBITDA*	282	261	1,109	931
Operational EBIT*	254	235	1,001	834
Fair value adjustment on biological assets	108	-55	-28	-12
Onerous contracts	-60	0	-51	71
Income from associates	3	-3	7	-1
Revenue tax	-23	0	0	0
EBIT	282	177	929	892
Net Financial items	-22	-11	-4	7
EBT	260	166	924	899
Taxes	-47	-34	-114	-252
Profit for the period	213	132	810	647
Operational EBITDA margin	31.2%	42.6%	38.9%	34.7%
Operational EBIT margin	28.0%	38.3%	35.1%	31.1%
Operational EBIT/kg (Farming and VAP) (NOK)	27.55	26.12	21.64	19.43
EBITDA margin (fishmeal, -oil and feed)	24.0%	30.5%	19.3%	18.7%

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

BALANCE SHEET

• Investments in PPE of DKK ~ 119 million in Q1 2016
• Financial assets unchanged
• The carrying amount of biological assets has increased, compared to end 2015
• Inventory decrease DKK 51 million from end of 2015
• Increase in equity because of positive results in the period
• NIBD at DKK 218 million down from DKK 391 million at end 2015*
• Equity ratio 66% (Covenants 35%)

* Incl. unrealised exchange gain, losses and deposits on financial derivatives related to the debt

(DKK million)	Q1 2016	End 2015
Intangible assets	295	295
Property, plant and equipment	1,622	1,531
Financial assets	131	131
Biological assets	1,130	1,060
Inventory	371	422
Receivables	241	199
Other receivables	114	180
Cash and cash equivalents	320	102
Total Assets	4,224	3,920
Equity	2,802	2,580
Deferred tax and other taxes	398	349
Long-term interest bearing debt	492	448
Financial derivatives	120	129
Accounts and other payables	412	414
Total Equity and Liabilities	4,224	3,920

CASH FLOW

• Cash flow from operations higher in Q1 2016 than Q1 2015:
• High operational earnings
• Working capital nearly unchanged in Q1 2016
• Cash flow from investments represents investments in property, plant and equipment
• Cash flow from financing is affected positively by increased interest bearing debt and by financing of associated company
• Undrawn loan facilities of DKK 1,074 million, of which DKK 53 million is restricted

(DKK million)	Q1 2016	Q1 2015	2015	2014
Cash flow from operations	244	81	768	877
Cash flow from investments	-119	-106	-602	-240
Cash flow from financing	94	35	-470	-414
Net change in cash	219	10	-303	223
Cash at the end of the period	321	415	102	405
Undrawn facilities	1,074	971	890	958

• SUMMARY OF Q1 2016
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

OUTLOOK

Market

Tight market balance in 2016, global supply reduction of 6%

Farming

• 2016 estimated harvest volumes at 48,000 tonnes
• Expected smolt release in 2016, 10.4 million pieces

VAP

Contracted 25% of expected harvest for rest of 2016

Fishmeal, -oil and feed

Forecast for feed sales, 80,000 tonnes in 2016

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 2016

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

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

• Efficiency
• Biological risk
• Organic growth

Status on main investments

• Harvest/VAP factory
• Installation of machinery in progress
• Harvest operation to start up in Q2 2016

• VAP operation to start up in 2H 2016

• New 8,000 m³ hatchery at Viðareiði

• Construction in progress
• Hatchery is finalised in Q3 2016
• However, start up operation in Q2 2016
• New 29,000 m³ hatchery á Strond
• Investment announced in March 2016
• Construction starts Q2 2016
• Hatchery is planned to be finished in 2018

Total investment programme 2016 - 2018 DKK 1,070 million

Bakkafrost's new hatchery at Viðareiði. New hatchery above and existing facilities below

BUILDING NEW HARVEST & VAP FACTORY

Merging 7 factories into one facility

• Improve efficiency and create synergies
• Double capacity
• Significant reduction of internal transportation between own factories
• New products
• Reduce risk in farming
• Start up in Q2 2016

New Harvest & VAP factory at Glyvrar

New Harvest & VAP factory to be completed in 2H 2016

BUILDING NEW HATCHERIES - VIÐAREIÐI

New hatchery at Viðareiði (S-21)

• Capacity expansion in finalising stages
• Reduce risk in farming
• Reduce total time of production cycle at sea
• Recycling of 99% of water
  • saving water and heating
• Viðareiði facility to start up operation in Q2 2016 and will be finalized in Q3 2016

November 2015 April 2016

Building new 8,000m³ hatchery at Viðareiði to be finalized in summer 2016

BUILDING NEW HATCHERIES – Á STROND

New hatchery á Strond

• Further significant capacity expansion commences
• Reduce risk in farming
• Reduce total time of production cycle at sea
• Recycling of 99% of water
  • saving water and heating
• Sludge treatment of discharge water and recycling of nutrients
• The goal is to increase size of smolt to above 400g in 2019
• Plan to be in operation in H2 2018
• Capacity to produce 7 million smolts á 500g

April 2016

Significant increase of capacity

• Startup of Viðareiði (S-21) in 2016 will increase Bakkafrost's total capacity by 70%
• Strond Klaksvík will increase the capacity further with 29.000 m³ to a total of 50.000 m³
• Total capacity four folded from 2015 til 2018

Capacity (m3)

Actual growth period with larger smolt

• Reduced risk
• Up to 6 months reduced growth period will reduce risk significantly
• Reduced mortality
• Fewer treatments and lower treatment costs
• Organic growth
• Shorter production cycle in farms will increase production
• Around 30% theoretical growth potential with size increase from 100 g to 500 g

Results with large smolt in the Faroe Islands

The graph shows actual growth period until harvest at 6 kg wfe in Faroe Islands in the period from 2005-2014

Financing of the investments 2016-2018

• Use free cash flow from operations
• Unused financing of approximately DKK 1,074 million
• Partly new financing if advantageous

Unchanged dividend policy

GEOGRAPHY

WATER

LOCATION

BIOMASS

FAROE ISLANDS – EXCELLENT CONDITIONS FOR COST EFFECTIVE FARMING

Biological sustainability setting the biomass target per license Efficient distribution to European, US and Far Eastern markets

Natural growth area for wild salmon

between 6-12 degrees Celsius

FEED Sustainable feed, based on local marine raw materials. High on Omega-3, proved track record with best performance on high SGR and low FCR

DEVELOPMENT PER QUARTER Q1 2013 – Q1 2016

(mDKK)	Q1 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013
Revenue	905	760	677	800	613	757	584	711	631	667	741	610	473
Op. EBIT	254	257	206	303	235	227	209	212	186	124	187	169	105
Profit/Loss	213	319	168	191	132	222	211	126	87	138	200	184	67
Harvest (tgw)	10,934	13,675	12,982	14,182	9,726	12,651	10,881	11,212	9,269	11,097	11,335	10,540	8,296
Op. EBIT Farming & VAP (NOK/kg)	27.55	21.83	18.10	22.62	26.12	19.48	19.73	17.66	21.37	12.44	15.76	15.29	12.16
Equity ratio	66%	66%	63%	61%	61%	60%	57%	53%	57%	54%	52%	49%	48%
NIBD	218	391	182	302	227	233	357	555	503	641	728	786	775

Turnover for the Bakkafrost Group has increased from 820 mDKK in 2010 to 2.9 bDKK in 2015.

Operational EBIT for the Bakkafrost Group has increased from 247 mDKK in 2010 to 1.0 bDKK in 2015.

The margin in Farming was NOK 19.63 per kg in 2015 – the highest ever.

The margin in VAP was NOK 5.58 per kg in 2015 – at the same time as Farming margin was record high.

During the last 15 years, 2001–2015 Norway had the highest margin of the farming countries with 6.5 NOK/kg in average, while BAKKA had 7.5 NOK/kg

During the last five years: 2011–2015 BAKKA had a strong average margin of 14.8 NOK/kg

In 2015, BAKKA had a farming margin of 21.6 NOK/kg

Source: Kontali

Higher value from:

• a good regulatory farming environment
• the new structure of the industry in the Faroe Islands
• company specific strategy

Dividend

Dividend of DKK 8.25 (NOK 10.38) per share paid out in Q2 2016

Dividend policy

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

DPS in % of adj. EPS *

* Operational EBIT is EBIT adjusted for fair value adjustment of biomass, onerous contracts, income/loss from associates, revenue tax, acquisition costs and badwill.

** Dividend and acquisition of treasury shares

Financing of the Group

• Total funding to ~ DKK 1,291 million
• Bonds NOK 500 million due Feb 2018 (swapped into DKK)
• Revolving credit facility of DKK 850 million due in 2020
• NIBD end Q4 2015: DKK 218 million

Financial covenants

Bond

• NIBD/EBITDA max 4.0 over 4 quarters
• Equity ratio of 35%
• Bank financing
• NIBD/ EBITDA max 4.5 over 4 quarters
• Equity ratio of 35%

NIBD and available funding

Changes in license tax on farming in the Faroes

• Approved by the parliament in December 2015
• Effective from 1 January 2016
• From 2016, revenue tax is classified as cost in the income statement, as revenue tax cannot be classified as tax according to IFRS

Changes in licence tax	2016	2014 and 2015
Taxable income	0%	4.5%
Farming revenue	4.5%	0.5%

FAROE ISLANDS

• 18 islands – 1,387 km²
• 49,192 inhabitants (January 2016)
• 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 (June 2015): 3.8%
• Total working force, (number of people 2014): 28,707
• GDP: DKK 14.7bn (2013)
• GDP/capita: DKK 305,000 (2013) (Norway: 360,000) (2013)

Total export of fish products (2013)

• DKK 6,171 million
• 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 see page 38
• Restriction on a single foreign ownership of 20% in farming companies
• One company may max. control 50% of licences in the Faroe Islands

Source: Hagstova Føroya

• USD decreased in value Q1 2016
• More than 50% of the revenue of Bakkafrost is in USD
• Bakkafrost has to some extent a natural hedge with large import of raw materials in USD

• So far Bakkafrost has not been hedging currency risks

• NOK reduced value in 2015 against most currencies, but regained somewhat in Q1 2016

• This means that the competitive advantage gained in 2015 for Norwegian export was more flat in Q1 2016, as a big share of costs are priced in NOK
• RUB has lost value since April 2015, and is now at its lowest
• The consumption in Russia is negatively affected by the development

LARGEST SHAREHOLDERS

20 largest shareholders

No of shares		Account name	type	Citizenship
4.594.437		9,4% Jacobsen Oddvør		FRO
4.493.140		9,2% Jacobsen Johan Regin		FRO
3.429.742	7,0%	Nordea Bank Danmark S/A NORDEA (DK) CCANOM		DNK
1.812.188	3,7%	Skandinaviska Enskil A/C CLIENTS ACCOUNTNOM		SWE
1.660.873	3,4%	FOLKETRYGDFONDET		NOR
1.395.291	2,9%	CLEARSTREAM BANKING	NOM	LUX
940.425	1,9%	STATE STREET BANK AN A/C EXEMPT LUX REGI NOM		USA
926.904	1,9%	SWEDBANK ROBUR SMABO NORDEN		SWE
907.878		1,9% JP Morgan Bank Luxem JPML SA RE CLT ASSET NOM		LUX
839.108		1,7% J.P. Morgan Chase Ba A/C US RESIDENT NONNOM		USA
821.756		1,7% The Bank of New York BNY MELLON	NOM	USA
815.573	1,7%	VERDIPAPIRFONDET DNB		NOR
809.683	1,7%	STATE STREET BANK AN A/C CLIENT OMNIBUS F NOM		USA
692.194	1,4%	UBS (LUXEMBOURG) S.A UBS(LUXEMBOURG)S.A.- NOM LUX
523.318	1,1%	STATE STREET BANK & A/C CLIENT FUND NUMB NOM		USA
461.066	0,9%	SKANDINAVISKA ENSKIL SEB S.A. CLIENT ASSE NOM		LUX
440.000	0,9%	VERDIPAPIRFONDET HAN NORGE		NOR
421.042	0,9%	DEUTSCHE BANK AG		GBR
417.329	0,9%	VERDIPAPIRFONDET DEL JPMORGAN EUROPE LTD,NOR
408.338	0,8%	STATE STREET BANK & S/A SSB CLIENT OMNI NOM		USA
26.810.285	54,9%
48.858.065		100 Total number of shares as per 4.May 2016
297.092		0,7 Wherof own shares
48.560.973	99,3 Total number of outstanding shares

Origin of shareholders, 5 largest countries

No of shares	% Origin	No of shareholders
12.560.735	25,7% Faroe Isl	930
9.825.553	20,1% UK	107
9.553.885	19,6% Norway	3.192
6.404.716	13,1% USA	86
3.465.672	7,1% Luxembourg	31

Total number of shareholders: 4,538 - from 24 different countries

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