Bakkafrost P/f

Investor Presentation • May 20, 2014

Q1 2014

BAKKAFROST GROUPGlyvrar 20 May 2014

• 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 2014

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

BAKKAFROST – THE LARGEST FISH FARMING COMPANYIN THE FAROE ISLANDS

• L t l f i i th F I l d Largest salmon farming company in the Faroe Islands
• ~63% of harvest volumes in Q1 2014
• 50% of farming licenses
• Harvested9,269 tgw in Q1 2014 (8,296 tgw in Q1 2013)
• Feed sale of 13,956 tonnes in Q1 2014* (14,906 tonnes in Q1 2013*)
• Revenues of DKK 631 million in Q1 2014 (DKK 473 million n in Q1 2013)
• Operational EBIT of DKK 186 million in Q1 2014 (DKK 10 5 million in Q1 2013)
• Positive results from Farming and Feed, loss on VAP
• Dividend of DKK 4.50 per share (NOK 4.98) paid out in Q2 2014

*) Including internal sale of 10,598 tonnes in Q1 2014 (10,991 tonnes in Q1 2013)

SUMMARY OF THE QUARTER

Highest margin ever

• Farming division increased margin from 14.95 to 22.51 NOK/kg
• Strong salmon prices and higher volumes main reason for higher operational EBIT
• Operational EBIT increased by 77%, while Operational ^p y, volumes increased by 12% only
• Decreased EBITDA in FOF compared to Q1 2013 due to optimal timing of purchase of Operational raw material for feed production in Q1 2013

t margin ever	(DKK million)	Q 1 2014	Q 1 2013	2013	2012
rming division increased margin from	Operating revenues	631.3	473.3	2,491.1	1,855.5
	Operational EBITDA	208.1	125.9	673.7	403.3
.95 to 22.51 NOK/kg	Operational EBIT	185.5	105.0	587.0	323.0
ong salmon prices and higher volumes	Profit for the period	87.2	67.5	589.2	281.3
in reason for higher operational EBIT
erational EBIT increased by 77%, while	Operational EBITDA margin	33.0%	26.6%	27.0%	21.7%
umes increased by 12% only	Operational EBIT margin	29.4%	22.2%	23.6%	17.4%
creased EBITDA in FOF compared to Q1	Operational EBIT/Kg (Farming) (NOK)	22.51	14.95	16.27	6.20
13 due to optimal timing of purchase of v material for feed production in Q1 2013	Operational EBIT/Kg (Farming and VAP) (NOK)	21.37	12.16	13.98	7.04
	Operational EBIT/Kg (VAP) (NOK)	$-1.82$	$-5.44$	$-5.16$	2.31
	EBITDA margin (Fishmeal, oil and feed)	12.45%	15.75%	11.61%	9.50%

M kt ar ket

• Tight market and high prices
• St d d d it hi h i Strong demandespite g h prices

Operation

• Harvested volumes higher in Q1 2014 compared to Q1 2013
• Transferred 3.0 million smolts in Q1 2014
• No further ISA virus detected and nosuspicion of ISA
• Biology good and stable

SUMMARY OFQ1 2014

MARKETS AND SALES

• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK

GLOBAL MARKETS

• The global supply of salmon increased 4% in Q1 2014 compared with Q1 2013
• The salmon prices have increased to the highest level for the past 10 years - due to high demand and low 35,00 supply growth
• The NASDAQ salmon price increased in Q1 2014 by 29% d ith Q1 2013 0,00~29% compared with from 36.24 to 46.81 NOK/kg
• The increase was 13% from Q4 2013 to Q1 2014, from 41 50. to 46 81 . NOK/kg – 5 31 . NOK up per kg

Chhange in global market supply and market price

MARKETS & SALES

Overseas High-End markets also dominated Q1 2014 Q1

• Strong demand from the US market
• The Eastern European market is suffering during periods with high salmon prices

• EU market most important market for VAP products, but not for fresh whole salmon

• VAP/contract share 55% of total volume in Q1 2014 due to seasonal low harvest in the quarter

• Estimate for the year 40-45% VAP of total harvest.

S l a e s b k t m a r e s y	Q 1 2 0 1 4	Q 1 2 0 1 3	2 0 1 3	2 0 1 2
E U	4 7 %	4 2 %	4 7 %	5 0 %
U S A	2 6 %	2 2 %	1 9 %	1 6 %
A i s a	2 1 %	3 4 %	2 7 %	1 9 %
E E t a s e r n u r o p e	6 %	2 %	6 %	1 5 %

Contract share, VAP products [% of qty]

A MARKET IN BALANCE IN 2014 AND NO G 2014, ROWTH EXPECTED IN 2015

G

• We expect ^a back end loaded total global back-end supply growth of 8% in 2014 and 0% in 2015
• Norway is expected to increase volumes by 7% in ²⁰¹⁴ due to mild weather Irel
• Chile is expected to increase production by 13% in 2014
• Growth in supply of 7% has historically led to unchanged prices. Average NOS price in 2013 was NOK 39.07

	2011	2012	2013E	2014E	2015E
Norway	904	1.066	1.029	1.102	1.111
UK	139	143	142	145	146
Ireland	14	14	10	11	12
Faroes	51	64	65	69	67
Total Europe	1.109	1.287	1.246	1.327	1.335
Chile	196	318	418	471	438
Canada	108	123	104	106	116
USA	16	18	18	18	18
Total Americas	320	459	539	595	572
Other	38	44	48	53	60
Total (Sold Quantity)	1.467	1.790	1.833	1.975	1.967
Supply growth - Global		22%	2%	8%	0%
Supply growth - Europe Supply growth -		16%	$-3%$	7%	1%
Americas		43%	18%	10%	$-4%$
				Source: Kontali & Bakkafrost

Global supply of Atlantic Salmon (head on gutted HOG)

gutted -

DEMAND DEVELOPMENT SPLIT BY MARKETS

• Growth in supply of 4% in Q1 2014 supply
• Strong demand from :
• •USA,
• •Japan,
• •Greater China,
• •ASEAN and
• •Latin America
• Weakening demand from:
• • Russia and
• •Ukraine
• EU largest salmon market

S l k l d i ( h d d H ) O G t t t t t a m o n m a r e s, s o q u a n y e a o n g u e -
	Es im d t te a	lu vo m es	Q 1 c om	iso p ar n
Ma ke ts r	Q 1 2 0 1 4 E	Q 1 2 0 1 3	Vo lu m e	%
E U	1 8 5. 0 0 0	1 8 2. 3 0 0	2. 7 0 0	1 %
U S A	8 8. 1 0 0	8 3. 5 0 0	4. 6 0 0	6 %
Ru ia ss	2 9. 1 0 0	3 3. 4 0 0	4. 3 0 0 -	1 3 % -
Ja p an	1 2 0 . 6 0	1 0 0 . 6 0	2 0 . 0 0	1 9 %
Gr C h ina te ea r	1 8. 4 0 0	1 6. 8 0 0	1. 6 0 0	1 0 %
A S E A N	1 7. 0 0 0	1 3. 9 0 0	3. 1 0 0	2 2 %
La in Am ica t er	3 5. 7 0 0	2 9. 5 0 0	6. 2 0 0	2 1 %
U kra ine	3. 9 0 0	6. 6 0 0	2. 7 0 0 -	4 1 % -
O he ke t ts r m ar	4 7. 7 0 0	4 6. 0 0 0	1. 7 0 0	4 %
To l a l l m ke ta ts ar	4 3 5 0 0 7.	4 2 2. 6 0 0	1 4. 9 0 0	4 %

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

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

Greater China = China / Hong Kong / Taiwan

ASEAN = Association of Southeast Asian Nations

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.

N h ll i h bli h d /i i i f D b d Q4 fi Note that not all countries have published export/import statistics for December and figures ma b dj d ay be adjusted Source: Kontali

• SUMMARY OFQ1 2014
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK

Harvested volumes

• Harvested volumes increased by 12%
• Harvest primarily from the West region in the quarter

Smolt transfer

• Smolt transfer 3.0 million p ( ieces (Q1 2013 1.9) million
• Smolt release all months during the year due to favourable seawater temperatures

Seawater temperature in the Faroe Islands

I th l t In the same range as last year

Volumes in Faroe Farming for 2012 included as Faroe Farming was discontinuing operation

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

FARMING– OPERATIONAL PERFORMANCE

Revenues and margin

• Revenues increased 22% and volumes increased 12%
• Operational EBIT margin increased from 29% to 36% in Q1 2014
• High salmon prices
• Good biological situation and satisfying costs on harvested fish

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

( N N O K / k ) g	Q 1 2 0 1 4
F i a a r m n g	F i a r g N m n h t o r	F i a r g W m n t e s	F i a r m n g
O / i l E B I T k t t p e r a o n a g g w	2 6. 8 8	2 2. 3 5	2 2. 1 5

Operation

• EBIT/kg increase by NOK 7.56 equivalent to 51% in the quarter
• Harvested fish from the sites in Sundalagið with good biological and financial performance
• No signs of Neoparamoeba perurans and no signs of ISA – routine surveillance continues according to the Faroese farming model

202522.5114.95 16.27 ¹⁰156.2005Q1 2014 Q1 2013 2013 2012

SEGMENT VAP

Revenues and margin

• Revenues increased 56%, while volume increased 37%
• Loss in VAP due to high raw material prices in the spot market
• 40-45% of total harvested volumes in 2014 is expected to be sold as VAP on contracts

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

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

Strategy

• Bakkafrost's strategy is to sell around 50% of our products as VAP products directly to end markets in Europe and US
• Contracts are normally between 6 and 12 months
• Losses during periods with high increase in spot prices and gains during periods with drop in spot prices
• Contract prices increased significantly in Q1 2014 to highest level ever for the past 18 years
• 75-80% of the VAP capacity for 2014 contracted 80%

2510152005-15-10-5VAP EBITFARMING EBIT

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

SEGMENTFISHMEAL, OIL AND FEED (FOF)

• Improved raw material situation Intake of 44 situation. thousand tonnes in Q1 2014, compared with 31 thousand tonnes in Q1 2013
• EBITDA margin decreased from 15 75% to 12 45% 15.75% 12.45% due to favourable timing in Q1 2013 on sourcing of raw material
• Sale in 2014 in line with expectations but lower than line expectations, in Q1 2013 due to increased competition

Fishmeal, Oil and Feed

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

* Including sale to Bakkafrost corresponding to ~76% of feed volumes in Q1 2014 4 (Q1 2013: 74%)

OWNERSHIP IN FFSKAGEN

Two step transaction

• Purchased majority of Hanstholm Fiskemelsfabrik
• Sold Hanstholm Fiskemelsfabrik to FFSkagen
• Ownership now 17% in FF Skagen

Why sell Hanstholm to FF Skagen

• Hanstholm Fiskemelsfabrik unprofitable
• Necessary for consolidation in the region
• Access to important raw materials

OWNERSHIP IN PELAGOS

Pelagos ^a new processing plant next to Havsbrún

• 30% ownership together with two pelagic fishing co mmpanies
• Access to off cuts and downgraded fish
• Reduced transportation costs of raw material

Pelagos

• Commence p y roduction in Jul y 2014
• Capacity to process 650 tonnes per day

• A total investment of DKK 220 million for the plant

• SUMMARY OF Q1 2014

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

GROUP PROFIT AND LOSSPROFIT

	R d i D K K 3 3 % 1 5 8 t e v e n u e u p c o r r e s p o n n g o	( ( D K K i l l i m o
	i l l i ) d t m o n u e o :	O ing t p e ra re v

• Improved market prices for salmon (spot and VAP)
• Harvest volumes up 12%
• Operating EBIT increased by 76% from DKK 105 million to DKK 185 million in Q1 2014
• Decrease in fair value of biomass due to lower salmon prices
• Reversal of provision for onerous contracts due to lower spot prices than at year end Profit for the ^p 2013
• Profit after tax increased from DKK 67 million t DKK 87 illi i Q1 2014 to 87 million in Operational E

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

* Operational EBITDA contracts, income/los A and EBIT adjusted for non-operational related items, such as fair value adjustment of biomass, onerous ss from associates etc.

BALANCE SHEETSHEET

• Investments in PPE of DKK ~18 million in Q1 2014
• Financial assets increased due to investment in pelagic processing plant (Bakkafrost owns 30%) p g p gp ( )
• Financial assets increased due to positive operation in Faroe Farming
• Lower fair value due to lower biomass at sea and lower salmon prices
• Equity increased as a result of positive operations. Dividend is paid out in Q2 2014
• NIBD at DKK 503 million down from DKK 641 million at end 2013*
• Equity ratio 57% (Covenants 40%)

* Incl. unrealised losses and deposits on financial derivatives

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

• Positively affected cash flow from operations due to higher salmon prices
• Cash flow from investments represents investments i t l t d i t di t t iin property plant and equipment and investments in pelagic processing plant (associated company)
• Undrawn loan facility of DKK 804 million of which DKK 16 million is restricted

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

DIVIDEND

Dividend

• Dividend of DKK 4.50 (NOK ~4.98) per share paid out in April 2014
• Bakkafrost purchased treasury shares in 2013 2013, equivalent to DKK 0.59 (NOK 0.66) per share.
• Dividend incl. the acquisition of treasury shares is DKK 5.09 ( ) NOK ~5.64)

Dividend policy

• Competitive return through:
• Dividends
• Increase in the value of the equity
• G ll enerally the company sh ll ^a pay di id d 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

* Operational EBIT is EBIT adjusted for fair value adjustment of biomass, onerous contrac cts, income/loss from associates, acquisition costs and badwill

** Dividend and acquisition of treasury shares

DPS in % of adj. EPS *

PROPOSED TAX INCREASES APPROVED BBY PARLIAMENT

Licence tax on farming companies in the Faroes *

• Approved by the parliament in May 2014
• From a provisional tax to a permanent tax
• Licence tax of:
• •4.5% on taxable income
• •0 5% on farming revenues 0.5%

Effect on Q1 2014 compared to 2013 tax rates estimated to:

• Tax payable increases by DKK 5 million
• Deferred tax increases by DKK 51 million as the new tax is permanent

* For 2014 a provisional extra tax of 7% was implemented, compared to the 2.5% for 2013. The prov has been changed to a permanent 4.5% tax and a permanent 0.5% tax on revenues. The change fro to a permanent tax affects deferred tax. visional 7% tax om a provisional

• SUMMARY OF Q1 2014
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• INVESTMENTS 2014-2017
• OUTLOOK

OUTLOOK

Market

• More salmon expected in the market during the summer
• Forward prices for the rest of 2014 are around NOK 37.50 per kg
• Gl b l l th ti t d t 8% i 2014Global supply growth estimated to in

Farming

• E ti t d h t l h d t Estimated harvest volumes unchanged at 45,000 - 48,000 tonnes HOG in 2014
• Expected smolt release in 2014 unchanged at 11 6 million pieces 11.6

Biology

• Goodbiology and fish health
• Good biological performance and results

VAP

Around 75-80% of the VAP capacity for 2014 contracted

• • Contracted unsold volumes corresponds to 30% of remaining estimated harvested volumes in 2014
• •Contract prices on a significant higher level than in 2013

Fishmeal, oil and Feed

Forecast for Feed sales 83,000 - 87,000 tonnes in 2014

Business development

• Optimise the Value Chain according to the announced investment plan
• Pursue Organic Growth
• Financial flexibility enables M&A

FAROE ISLANDS

• 18 islands – 1,387 km²
• 48,288 inhabitants (February 28 2014)
• 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%
• C t ti 12%Construction: ~12%
• Fishing : ~17%
• Unemployment rate (Feb 2014): 4.3%
• Total working force (no of people Feb 2014): 27,075
• GDP: DKK 13.6 bn (2012)
• GDP/capita: DKK 282,000 (2012) (Norway: 300,000) (2010)

Total export of fish products (2013)

• DKK 5 766 million5,766
• whereof farmed fish accounts for 42.5%

TAXES

• Total Percent of GDP: 44.8% (2012)
• Corporate Tax: 18%
• Farming Licence Tax : 4.5% plus 0.5% of revenues
• Restriction on a single foreign ownership of 20% in farming com
• O t l 50% f li i th F I l One company may max. control 50% of licences in the Faroe Islmpanies dans

One of the most vertical integrated salm mon farming companies in the world

• • Full traceability to the benefit of our cus stomers
• •45 years of experience
• •Focus on cost centres
• • Vertical integration reduces operational and financial risk
• • A k t f d ith A market focused company with own sa al d k ti d t te and marketing department

MONTHLY EXCHANGERATES

SD/DKK

GBP/DKK

GEOGRAPHY

WATER

LOCATION

BIOMASS

Sustainable feed, based on local marine ra materials. High on Omega-3, proved track r best performance on high SGR and low FC w record with CR

Page 33

BAKKAFROST -PREPARING FOR THE FUTURE

The investments will be made step by st to secure:tep in the relevant parts in the value chain

• Efficiency
• Bi l i l i kBiological risk
• Organic growth

INVESTMENTS PREPARING FOR THE FUTURE -

INVESTMENTS 2014 - 2017

BAKKAFROST -PREPARING FOR THE FUTURE

Phase 3: New VAP operation

BAKKAFROST -PREPARING FOR THE FUTURE

Financing of the investments 2014-2017

• Use free cash flow from operation operation
• Unused financing of DKK 804 million
• Partly new financing if advantageous

U h d di id d li Unchanged dividend policy

FINANCING

Financing of the Group

• Total funding to DKK ~ 1,328 million
• Bonds NOK 500 million due Feb 2018 (swapped into DKK)
• Instalment loan of DKK 300 million, repayable with DK 25 million each quarter K
• Revolving credit facility of DKK 553 million due in 2017 7
• NIBD end Q1 2014: DKK 678 million

Covenant loans

• NIBD/ EBITDA max 3.5 over 12 months ( Bonds 4.0)
• Equity ratio of 40.0%

NIBD and available funding NIBD and avaible funding

DEVELOPMENT PER QUARTER Q1 2012 2012 – Q1 201 4

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

Turnover for Bakkafrost group has increased from 820 mDKKin 2010 to 2 5 bDKKin 2013

Operational EBIT for Bakkafrost Group has increased from 247 mDKK in 2010 to 587 mDKK in 2013 2.5 ^y NOK/kg

The margin in F highest ever. E increased by 22 Farming was 15 NOK in 2013 – the Even in 2012, when the global supply 2%, the company had a margin of 7.3 , py g

LARGEST SHAREHOLDERS

20 largest shareholders

f sh No o are s	sha re	Na me	Oi i r g n
4.5 94. 437	9,5 % J	AC OB SEN Od dvø r	Far Isl oe
4.4 91. 217	9,3 % J	AC OB SEN Reg in	Isl Far oe
2.4 54. 264	5,1 % T	ÍLØ /F F GU R P	Far Isl oe
2.0 94. 793	3,0 % S	KA ND INA VIS KA ENS KIL DA BA NK EN AB	eed Sw en
1.4 41. 540	% J 2,2	.P. MO RGA N C HA SE BA NK N.A . LO ND ON	UK
1.0 84. 284	2,2 % J	.P. MO RGA N L UX EM BO URG S.A	UK
1.0 48. 356	2,0 % J	P M OR GA N C HA SE BA NK , N A	No rwa y
964 .95 1	1,9 % J	MO RGA N C SE . LO ON .P. HA BA NK N.A ND	UK
919 .55 6	1,6 % J	.P. MO RGA N C HA SE BA NK N.A . LO ND ON	UK
800 .00 0	1,5	% V ERD IPA PIR FO ND ET HA ND ELS BA NK EN	No rwa y
750 .00 0	1,5 % S	KA ND INA VIS KA ENS KIL DA BA NK EN AB	No rwa y
732 .18 9	1,5 % S	. ( ) EB PRI VA TE BA NK S.A EXT EN DED	Lux
727 727 .39 391 1	%, 1 5	STA TE STR EET BA NK AN D T RUS T C O.	USA
715 .39 2	1,5 %	NO RD EA NO RD IC S MA LL C AP FUN D	UK
707 .58 4	1,4 % C	AC EIS BA NK FRA NC E	Fra nce
700 .45 9	1,3 % S	TAT E S TRE ET BA NK AN D T RUS T C O	USA
644 .20 2	1,3 % S	A/S KA ND INA VIS KA ENS KIL DA BA NK EN	ark De nm
621 .67 1	% 1,3	& C IE ( E) PIC TET EUR OP S.A	Lux
562 .44 1	1,0 %	KAT RIN DA HL JAK OB SEN	Far Isl oe
502 .67 9	1,0 %	HO LTA INV EST AS	No rwa y
26. .40 6 557	51, 4%	al s har e 2 0 la har eho lde Tot sts rge rs
48. 479 .48 4		al n ber of o din har Tot er M uts tan um g s es as p	h 2 13t 014 ay
48. 858 .06 5		al n ber of s har h 2 Tot er M 13t 014 um es as p ay
378 .58 1	0, 8%	Wh of o sha ere wn res

Origin of shareholders, 5 largest countries

f s ha No o res	ha s re	f s ha ho l de No o re rs
1 5. 9 3 6. 9 9 6	l 3 2, 9 % Fa Is roe	8 2 1
0. 2 8. 2 8 6 1 7	2 2 % 1, U K	7 7
9. 9 3 5. 1 2 4	2 0, 5 % No rw ay	1. 2 4 9
4. 1 2 6. 5 3 3	8, 5 % U S A	4 6
2. 5 5 9. 5 4 6	% de 5, 3 Sw ee n	1 2

Total number of shareholders: 2,301 - from 23 different countries

Share price development since listing in NOK

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