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Mowi ASA

Investor Presentation • Feb 5, 2014

3665_rns_2014-02-05_7559a7a1-58c3-4258-8ece-03ca6e4a4b75.pdf

Investor Presentation

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Marine Harvest Q4 2013 Presentation

Forward looking statements

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

Our registration statement on Form 20-F filed with the US Securities and Exchange Commission in 2014 contain information about specific factors that could cause actual results to differ, and you are urged to read them. Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today.

  • All time high revenues
  • Strong market driven by increased demand
  • Operational EBIT NOK 1,034 million
  • Listed on NYSE 28 January 2014
  • Quarterly dividend of NOK 1.20 per share (ex. 10:1 reverse split)

Key financials

Ma
in
Ha
t
Gr
in
f
ig
r
e
rv
es
ou
p
- m
a
ur
es		 Q
4.
1
3		 Q
4.
1
2		 2
0
1
3		 2
0
1
2
N
O
K m
i
l
l
ion
Op
ion
l re
d
he
inc
t
t
er
a
a
ve
nu
e
an
o
r
om
e		 6
7
4
3		 4
0
7
1		 1
9
2
3
0		 1
5
5
6
9
Op
ion
l
E
B
I
T
t
1)
er
a
a		 1
0
3
4		 6
4		 3
2
1
0		 6
4
3
Ca
h
f
low
fro
ion
t
s
m
op
er
a
s		 5
1
-		 1
6
9
-		 1
9
8
2		 1
3
5
5
Ne
t
in
te
t-
be
ing
de
b
t
(
N
I
B
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)
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ar		 7
7
9
7		 5
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1		 7
7
9
7		 5
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8
1
2)
Un
de
ly
ing
E
P
S
f
3
1.
1
2
2
0
1
3
(
N
O
K
)
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as
o		 0.
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8		 -0
0
1		 0.
5
4		 0.
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6
3)
f
f
(
O
)
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t c
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9		 0.
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-		 0.
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6
2)
Un
de
ly
ing
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(
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1
)
(
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K
)
r
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6
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3)
f
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2		 %
3.
9
(
)
Ha
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te
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ig
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to
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e
nn
es
sa
on
,		 1
0
3
3
8
7		 1
0
3
2
1
5		 3
4
3
7
7
2		 3
9
2
3
0
6
3
Op
ion
l
E
B
I
T
N
O
K
kg
t
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a
a
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rw
ay		 1
2.
0
3		 3.
6
2		 1
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8
3		 3.
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3
Sc
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lan
d
o		 1
0.
2
3		 -1
1
4		 1
2.
4
5		 3.
8
0
Ca
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na		 1
0.
2
0		 -4
8
1		 1
0.
1
9		 3.
4
8
-
C
h
i
le		 2.
4
8		 -8
1
7		 2.
3
2
-		 2.
2
6
-

Notes in appendix

Record high prices in Europe

  • Global supply growth ~4%
  • Strong prices in all markets
  • Price of Canadian salmon in Seattle outperformed Chilean salmon in Miami

Price achievement by origin

Note: Q3 2013 average price achievement is measured versus reference prices in all markets (Norway/Faroes (NOS), Scotland (NOS+ NOK 2.89), Canada (UB Seattle), 6 Chile (UB Miami)

SALMON OF NORWEGIAN ORIGINNOK million Q4 2013 Q4 2012 Operational EBIT 825 254 Harvest volume 68 581 70 061Operational EBIT per kg 12.03 3.62 - of which MH Markets 0.64 0.88- of which MH VAP Europe -0.35 0.14 - of which Morpol Processing 0.23 na Exceptional items incl in op. EBIT -80 -41 Exceptional items per kg -1.17 -0.59

Norway

Price achievement/reference price 93% 106% Contract coverage 36% 29% Superior share 92% 93%

  • Strong market led to significant margin improvement
  • Price achievement negatively impacted by sales contracts
  • Increased costs
  • High feed cost
  • High sea lice awareness

Note: Marine Harvest Norway's fixed price/fixed volume contracts with third party customers and MH's processing entities. MH's processing entities covers a large 8 proportion of their sales exposure through third party end product contracts.

S
A
L
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
NO
K m
illio
n		 Q
4
2
0
1
3		 Q
4
2
0
1
2
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 1
2
0		 8
-
H
lu
t v
a
rv
e
s
o
m
e		 1
1
7
1
6		 6
7
1
8
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t
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k
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r
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a
p
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r
g		 1
0.
2
3		 1.
1
4
-
f w
h
i
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-		 2.
9
9		 0.
3
6
f w
h
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-		 0.
2
6
-		 0.
1
2
f w
h
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l
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-		 0.
6
5		 n
a
Ex
t
i
l
i
t
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l
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E
B
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T
c
e
p
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n
a
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m
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n
c
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p.		 1
7
-		 0
Ex
t
i
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t
k
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e
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n
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e
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s
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r
g		 1.
4
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-		 0.
0
0
P
i
h
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t
/
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i
r
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c
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e
m
e
n
r
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r
e
n
c
e
p
r
c
e
v		 9
8
%		 1
2
0
%
C
t
t
o
n
r
a
c
c
o
e
r
a
g
e
v		 7
3
%		 7
7
%
S
i
h
p
e
r
o
r
s
a
r
e
u		 9
0
%		 9
7
%
  • Strong price achievement despite high contract coverage
  • 15% higher feed costs despite improved feed conversion ratio
  • Other seawater costs impacted by early harvest due to AGD (one site)
  • Non-seawater costs positively impacted by fixed cost dilution
S
O
O
C
O
G
A
L
M
N
F
A
N
A
D
I
A
N
R
I
I
N
NO
K m
illio
n		 Q
4
2
0
1
3		 Q
4
2
0
1
2
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 5
8		 5
2
-
H
lu
t v
a
rv
e
s
o
m
e		 2
6
5
7		 1
0
3
7
5
O
i
l
E
B
I
T
k
t
p
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r
a
o
n
a
p
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r
g
f w
h
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M
H
M
k
t
o
c
a
r
e
s
-
f w
h
i
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H
V
A
P
Eu
o
c
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f w
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l
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r
g		 1
0.
2
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1.
8
6
0.
0
0
0.
0
0
2
-
0.
4
3
-		 4.
8
1
-
0.
9
2
0.
0
0
n
a
1
0
-
0.
9
2
-
P
i
h
i
t
/
f
i
r
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a
c
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e
m
e
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n
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p
r
c
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C
t
t
o
n
r
a
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c
o
v
e
r
a
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e
S
i
h
u
p
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r
o
r
s
a
r
e		 1
0
1
%
0
%
8
8
%		 9
9
%
4
%
8
3
%
  • 83% increase in market prices for Canadian salmon in the quarter
  • 100% spot exposure
  • Higher biological costs and adverse effect from fixed cost dilution

Chile

  • Increased market prices and strong price achievement in the quarter
  • Price of Chilean salmon however lagging Canadian in the US market
  • Very high costs in the quarter due to tough biological conditions
  • USD 5.0 per kg HOG in box
  • Biological concerns remain

Ireland and Faroes

S
A
L
M
O
N
O
F
I
R
I
S
H
O
R
I
G
I
N
NO
K m
illio
n		 Q
4
2
0
1
3		 Q
4
2
0
1
2
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 3
6
-		 1
0
-
H
t v
lu
a
rv
e
s
o
m
e		 1
3
4
5		 2
7
3
6
O
t
i
l
E
B
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T
k
p
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r
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o
n
a
p
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r
g
f w
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M
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s
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f w
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M
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V
A
P
Eu
o
c
r
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l
P
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g
-		 2
6.
7
6
-
0.
0
3
0.
2
2
-
0.
0
0		 3.
5
5
-
0.
0
5
0.
2
2
n
a
Ex
i
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Ex
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-
1
6.
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6
-		 2
3
-
8.
3
3
-
/
f
P
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t
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C
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r
a
g
e
S
i
h
u
p
e
r
o
r
s
a
r
e		 n
a
%
9
3
8
%
7		 n
a
%
9
2
9
3
%
S
A
L
M
O
N
O
F
F
A
R
O
E
S
E
O
R
I
G
I
N
NO
K m
illio
n		 Q
4
2
0
1
3		 Q
4
2
0
1
2
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 2
7		 1
3
H
t v
lu
a
rv
e
s
o
m
e		 1
8
7
4		 1
9
4
3
O
t
i
l
E
B
I
T
k
p
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r
a
o
n
a
p
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r
g		 1
4.
4
8		 6.
4
5
f w
h
i
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M
H
M
k
t
o
c
a
r
e
s
-		 0.
0
6		 0.
5
5
f w
h
i
h
M
H
V
A
P
Eu
o
c
r
o
p
e
-		 0.
0
0		 0.
0
1
f w
h
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h
M
l
P
i
o
c
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r
p
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r
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s
s
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g
-		 0.
0
0		 n
a
Ex
i
l
i
i
l
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E
B
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T
t
t
c
e
p
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n
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p.		 0 0
Ex
i
l
i
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t
t
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p
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m
s
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r
g		 0.
0
0		 0.
0
0
/
f
P
i
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t
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r
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e
a
c
e
v
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e		 %
9
5		 %
1
0
1
C
t
t
o
n
r
a
c
c
o
v
e
r
a
g
e		 %
4		 %
2
1
S
i
h
u
p
e
r
o
r
s
a
r
e		 %
9
8		 %
9
6

Value Added Products Europe (VAP Europe)

M
H
V
A
P
E
U
R
O
P
E
NO
K m
illio
n		 Q
4
2
0
1
3		 Q
4
2
0
1
2
O
i
t
p
e
r
a
n
g
r
e
v
e
nu
e
s		 1
3
9
5		 1
1
4
0
O
i
l
E
B
I
T
t
p
e
r
a
o
n
a
O
l
E
B
I
T
%
t
p
e
r
a
o
n
a		 3
7
-
2.
7
%
-		 1
6
1.
4
%
(
)
V
lu
l
d
t
d
t w
i
h
t
o
m
e
s
o
o
n
n
e
s
p
r
o
u
c
e
g
Ex
i
l
i
t
t
c
e
p
o
n
a
e
m
s		 1
7
2
4
7
0		 1
7
0
8
4
0
V
lu
h
l
o
m
e
s
a
r
e
s
a
m
o
n
R
h
l
e
v
e
nu
e
s
a
r
e
s
a
m
o
n
G
i
h
l
r
o
s
s
m
a
r
g
n
s
a
r
e
s
a
m
o
n		 6
4
%
7
2
%
6
3
%		 6
2
%
6
8
%
7
0
%
  • Poor performance in the quarter
  • Inability to pass through higher raw material costs
  • Strike hampered optimal Christmas sales
  • High structural costs being addressed
  • Restructuring programme will yield cost improvements from 2H 2014

Morpol Processing

M
O
R
P
O
L
P
R
O
C
E
S
S
I
N
G
N
O
K
i
l
l
io
m
n		 Q
4
2
0
1
3
O
t
i
p
e
r
a
n
g
r
e
e
nu
e
s
v		 1
3
5
7
O
i
l
E
B
I
T
t
p
e
r
a
o
n
a		 6
4
O
%
t
l
E
B
I
T
p
e
r
a
o
n
a		 %
4.
7
V
lu
l
d
(
t
d
t w
i
h
t
)
o
m
e
s
o
o
n
n
e
s
p
r
o
c
e
g
u		 2
7
7
3
8
Ex
i
l
i
t
t
c
e
p
o
n
a
e
m
s		 0
V
lu
h
l
o
m
e
s
a
r
e
s
a
m
o
n		 9
0
%
R
h
l
e
v
e
nu
e
s
a
r
e
s
a
m
o
n		 8
8
%
  • Strong performance despite very high market prices
  • Raw material break even price of ~NOK 44 in the quarter
  • Strong cost performance in the quarter
  • Q1 2014 profitability challenged by current high raw material price

Fish feed project proceeding according to plan

  • 220 thousand tonnes capacity 60% of MHG requirement in Norway(1)
  • ~NOK 800m investment Completion July 2014

Fourth Quarter 2013 Financials, Harvest Volumes and Markets

Profit and Loss

Ma
ine
Ha
t
Gr
r
rve
s
ou
p
NO
K m
illio
n		 Q
4.
1
3		 Q
4.
1
2		 2
0
1
3		 2
0
1
2
Op
ion
l re
d o
he
inc
t
t
er
a
a
ve
nu
e a
n
r
om
e		 6
4
3
7		 4
0
1
7		 1
9
2
3
0		 1
6
9
5
5
Op
ion
l
E
B
I
T 1
t
)
er
a
a		 1
0
3
4		 6
4		 3
2
1
0		 6
4
3
Un
l
ise
d g
ins
lm
de
iva
ive
t
rea
a
on
sa
on
r
s		 1
2
-		 1
9
-		 3
0
-		 1
0
6
-
Fa
ir v
lue
d
j
b
io
log
ica
l a
tm
t o
ts
a
a
us
en
n
ss
e		 1
1
5
5		 4
0
2		 1
8
2
5		 3
5
0
On
tra
ts
is
ion
ero
us
co
n
c
p
rov
s		 1
4
2
-		 2
5
-		 1
2
5
-		 6
-
Re
ing
tru
tur
ts
s
c
co
s		 3
4
-		 0 2
7
3
-		 1
-
No
t
ion
l
leg
l
iss
n-o
p
era
a
a
ue
s		 0 0 7
4
-		 0
Inc
/
los
fro
ia
te
d c
ies
om
e
s
m
as
so
c
om
p
an		 1
1
6		 3
0		 2
2
2		 8
8
Im
irm
t
los
p
a
en
se
s		 5
7
-		 3 6
5
-		 1
-
E
B
I
T		 2
0
5
9		 4
5
5		 4
6
9
0		 9
6
9
Ne
t
f
ina
ia
l
i
tem
nc
s		 3
8
5
-		 5
8		 1,
2
0
5
-		 1
8
0
-
Ea
ing
be
for
tax
rn
s
e		 1
6
7
4		 5
1
3		 3
4
8
6		 7
8
9
Pr
f
i
t o
los
for
t
he
io
d
o
r
s
p
er		 1
3
1
0		 2
8
9		 2
5
4
1		 4
1
3
2)
Un
de
ly
ing
E
P
S
f
3
1.
1
2
2
0
1
3
(
N
O
K
)
r
as
o		 0.
1
8		 0.
0
1
-		 0.
5
4		 0.
0
6
3)
Ne
h
f
low
ha
f
3
1.
1
2.
2
0
1
3
(
N
O
K
)
t c
as
p
er
s
re
as
o		 -0.
1
9		 0.
0
9
-		 0.
0
4
-		 0.
2
6
2)
Un
de
ly
ing
E
P
S
f
l
i
(
1
0:
1
)
(
N
O
K
)
ter
t
r
- a
re
ver
se
sp		 1.
8
3		 0.
0
9
-		 3
5.
7		 0.
6
3
3)
f
f
(
O
)
Ne
t c
h
low
ha
ter
l
i
t
N
K
as
p
er
s
re
- a
re
ve
rse
sp		 -1.
9
2		 0.
8
6
-		 0.
4
1
-		 2.
5
5
Op
t
ion
l
E
B
I
T m
in
era
a
arg		 1
5.
3
%		 1.
6
%		 1
6.
7
%		 4.
1
%
Ha
t v
lum
H
O
G
ton
(
lm
i
ds
)
rve
s
o
e,
ne
s
sa
on		 1
0
3
3
7
8		 1
0
3
2
1
5		 3
4
3
7
7
2		 3
9
2
3
0
6
Op
fro
Sa
t
ion
l
E
B
I
T p
kg
inc
l m
in
les
d
Ma
ke
t
ing
2)
era
a
er
arg
m
an
r		 1
0.
2
6		 1.
0
5		 9.
7
6		 1.
9
5
3)
R
O
C
E		 2
0.
3
%		 2.
0
%		 1
8.
2
%		 3.
9
%

1) Adjusted for unrelised gains/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provisions, income/loss from associated companies, restructuring costs and w rite-dow ns of fixed assets/intangibles.

2) Operational EBIT including contribution from Sales and Marketing divident by harvest volume (HOG tonnes, salmonids),

excluding Sterling Halibut, Headquarter and Holding companies

3) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustment of biomass and onerous

contracts provisions /average (NIBD + Equity)

4) Underlying EPS: Operational EBIT adjusted for accrued payable interest, w ith estimated w eighted tax rate

5) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects

Financial Position

M
in
Ha
Gr
t
ar
e
rv
es
ou
p
N
O
K m
i
l
l
ion		 3
1.
1
2.
2
0
1
3		 3
1.
1
2.
2
0
1
2
No
t a
ts
n-
cu
rre
n
ss
e
Cu
t a
ts
rre
n
ss
e
As
he
l
d
fo
le
ts
se
r s
a
To
ta
l a
ts
ss
e		 1
6
4
6
9
1
6
0
8
6
1
0
4
6
3
3
6
0
1		 1
3
5
8
0
9
7
3
8
0
2
3
3
1
7
Eq
i
ty
u
No
t
l
ia
b
i
l
i
t
ies
n-
cu
rre
n
Cu
l
ia
b
i
l
i
ies
t
t
rre
n
L
ia
b
i
l
i
t
ies
he
l
d
fo
le
r s
a
To
l e
i
d
l
ia
b
i
l
i
ie
ta
ty
t
q
u
a
n
s		 1
6
3
7
2
1
1
7
2
1
3
2
0
5
1
8
8
3
3
6
0
1		 1
1
6
8
9
8
2
9
7
3
3
3
2
0
2
3
3
1
7
Ne
t
in
te
t-
be
ing
de
b
t
re
s
ar
N
I
B
D
/
Eq
i
ty
u
Eq
i
ty
t
io
u
ra		 9
7
7
7
4
7.
6
%
%
4
8.
7		 3
8
1
5
4
6.
0
%
%
5
0.
1

NIBD/Equity within target of less than 50%

Cash Flow and Net Interest Bearing Debt

Ma
ine
Ha
t
Gr
r
rve
s
ou
p
NO
K m
illio
n		 Q
4.
1
3		 Q
4.
1
2		 2
0
1
3		 2
0
1
2
N
I
B
D
be
inn
ing
f p
io
d
g
o
er		 8
8
2
7
-		 0
0
5
5
-		 3
8
1
5
-		 6
4
6
7
-
Op
ion
l
E
B
I
T
D
A
t
era
a		 1
2
6
9		 2
3
4		 3
9
7
2		 1
3
2
1
C
ha
in
k
ing
i
ta
l
ng
e
wo
r
ca
p		 -1
2
3
6		 3
7
3
-		 1
7
8
7
-		 4
7
2
Ta
i
d
xe
s p
a		 6
9
-		 2
2
-		 1
1
6
-		 1
2
3
-
O
t
he
d
j
tm
ts
r a
us
en		 1
5
-		 8
-		 8
9
-		 1
1
7
-
Ca
h
f
low
fro
t
ion
s
m
op
er
a
s		 5
1
-		 1
6
9
-		 1
9
8
2		 1
5
5
3
Ca
p
ex		 5
9
0
-		 2
3
9
-		 1
9
0
1
-		 6
6
2
-
O
t
he
inv
tm
ts
r
es
en		 2
7
2
-		 4
2
4
-		 8
5
1
-		 3
9
5
-
Ca
h
f
low
fro
inv
tm
ts
s
m
es
en		 8
6
2
-		 6
6
3
-		 2
2
7
5
-		 1
0
8
5
-
Ne
t
in
ter
t a
d
f
ina
ia
l
i
tem
i
d
es
n
nc
s p
a		 1
8
5
-		 6
3
-		 2
5
7
-		 3
0
2
-
O
t
he
i
tem
r
s		 1
6
4
-		 5
6		 6
3		 1
4
5
Bo
ds
te
d
to
i
ty
n
co
nve
r
eq
u		 1
7
8
3		 0 1
7
8
3		 0
D
iv
i
de
d
d
is
tr
i
bu
te
d
n		 2
7
7
-		 0 8
2
6
-		 0
N
I
B
D
fro
l
i
da
ion
f
Mo
l
t
m
co
ns
o
o
rp
o		 0 0 1
6
8
1
-		 0
Ne
t e
i
ty
i
d-
in
/
Pu
ha
ha
q
p
a
rc
se
ow
n s
res
u		 0 4
2
5		 0 4
2
5
Tra
la
t
ion
f
fec
t o
in
ter
t-
be
ing
de
b
t
ns
e
n
es
ar		 1
8
7
-		 3
8		 5
4
3
-		 3
2
3
f p
N
I
B
D
d
io
d
en
o
er		 7
7
9
7
-		 5
3
8
1
-		 7
8
8
2
-		 5
3
8
1
-
1):
De
b
t
d
is
tr
i
bu
t
ion
E
U
R		 6
2
%		 9
%
7		 6
2
%		 9
%
7
S
U
D		 %
1
4		 %
1
4		 %
1
4		 %
1
4
G
B
P		 4
%		 4
%		 4
%		 4
%
O
t
he
ies
r c
urr
en
c		 2
0
%		 3
%		 2
0
%		 3
%

(1) Debt distribution including effect of cross currency swaps.

(2) Currency effect on debt in Q4 is NOK 187 million.

2014 Cash Flow Guidance and Financing Update

  • 2014 cash flow estimates
  • Working capital buildup NOK 800m
    • Requirements for commencing operations in feed plant
    • Organic growth farming Scotland and Canada
  • Capital expenditures NOK 1,700m
    • NOK 1,000m Maintenance
    • NOK 500m – Structural investments – organic growth and strengthen assets
    • NOK 200m - Feed plant in Norway
  • Interest expenses NOK 400m
  • Tax payables NOK 280m
  • Quarterly dividend of NOK 1.2 per share (post 10:1 reverse split)
  • 2014 NIBD target to be set in Q1 report
  • Bank facilities to be refinanced during 1H 2013 (see appendix)

Due to seawater growth patterns, WC is highly seasonal

Slow seawater growth in 1H leads to working capital release and high seawater growth in 2H leads to working capital build up

Supply development Q4 2013

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

Source: Kontali

  • 4% increase in global harvest volumes in line with expectations
  • 2% in Europe
  • 8% increase in the Americas

Development in reference prices

Re
fer
ice
en
ce
pr
s		 Q
4 2
01
3
NO
K		 Ch
an
ge
vs
Q
4 2
012		 Q
4 2
01
3
Ma
rke
t (
4)		 Ch
an
ge
vs
Q
4 2
012
No
(
1)
rwa
y		 NO
K 4
0.9
7		 55
.9%		 EU
R 4
.98		 39
.5%
Ch
ile
(
2)		 NO
K 5
5.4
5		 52
.3%		 US
D 9
.16		 43
.1%
No
rth
A
rica
(
3)
me		 NO
K 4
5.2
6		 82
.8%		 US
D 7
.48		 71
.7%

Notes:

(1) Average superior HOG price per kg (FCA Oslo)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 36.0 and USD 6.0 HOG

(3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb)

(4) Market price in local currency

Global volume by market

Es
t
im
te
d
lu
a
vo
m
es		 Co
d
to
Q
4
2
0
1
2
m
p
ar
e		 Es
t.v
lu
o
m
es		 Es
t
im
te
d
a
vo		 lu
m
es
Q
4
2
0
1
3		 Q
4
2
0
1
2		 Vo
lu
m
e		 % Q
3
2
0
1
3		 2
0
1
3		 2
0
1
2
Ma
ke
ts
r
E
U		 2
3
6,
9
0
0		 2
3
3,
6
0
0		 3,
3
0
0		 1.
4
%		 2
0
8,
6
0
0		 8
1
8,
5
0
0		 8
2
5,
6
0
0
U
S
A		 8
5,
8
0
0		 7
9,
5
0
0		 6,
3
0
0		 7.
9
%		 7
9,
4
0
0		 3
3
6,
9
0
0		 3
1
0,
1
0
0
Ru
ia
ss		 4
5,
5
0
0		 4
8,
2
0
0		 2,
7
0
0
-		 5.
6
%
-		 3
2,
8
0
0		 1
4
4,
2
0
0		 1
5
4,
4
0
0
Br
i
l
as		 2
2,
4
0
0		 2
0,
8
0
0		 1,
6
0
0		 7.
7
%		 2
0,
1
0
0		 7
6,
0
0
0		 5
6,
7
0
0
C
h
ina
/
Ho
Ko
ng
ng		 1
7,
8
0
0		 1
5,
5
0
0		 2,
3
0
0		 1
4.
8
%		 1
6,
3
0
0		 5
9,
4
0
0		 5
3,
7
0
0
Ja
p
an		 1
7,
7
0
0		 1
3,
8
0
0		 3,
9
0
0		 2
8.
3
%		 1
3,
2
0
0		 5
3,
3
0
0		 5
6,
8
0
0
So
t
h
Ko
/
Ta
iw
u
rea
an		 8,
5
0
0		 1
0,
4
0
0		 1,
9
0
0
-		 1
8.
3
%
-		 8,
4
0
0		 3
4,
2
0
0		 3
2,
4
0
0
U
kra
ina		 6,
9
0
0		 9,
5
0
0		 2,
6
0
0
-		 2
7.
4
%
-		 6,
6
0
0		 2
8,
0
0
0		 2
3,
9
0
0
Su
in
ke
ts
m
m
a
m
ar		 4
4
1,
5
0
0		 4
3
1,
3
0
0		 1
0,
2
0
0		 %
2.
4		 3
8
5,
4
0
0		 1,
5
5
0,
5
0
0		 1,
5
1
3,
6
0
0
O
t
he
ke
ts
r m
ar		 8
4,
0
0
0		 7
5,
1
0
0		 8,
9
0
0		 1
1.
9
%		 6
9,
2
0
0		 2
8
4,
0
0
0		 2
7
3,
9
0
0
To
l a
l
l m
ke
ta
ts
ar		 2
0
0
5
5,
5		 0
6,
4
0
0
5		 1
9,
1
0
0		 3.
8
%		 4
4,
6
0
0
5		 1,
8
3
4,
0
0
5		 1,
8
0
0
7
7,
5
f
S
fro
In
low
to
U
Eu
m
rop
e		 2
5,
4
0
0		 1
6,
2
0
0		 9,
2
0
0		 %
5
6.
8		 1
9,
6
0
0		 8
2,
2
0
0		 6
7,
4
0
0
f
fro
C
In
low
to
E
U
h
i
le
m		 9,
5
0
0		 8,
5
0
0		 1,
0
0
0		 %
1
1.
8		 1
2,
3
0
0		 4
6,
6
0
0		 2
4,
3
0
0
f
fro
C
In
low
to
Ru
ia
h
i
le
ss
m		 8,
2
0
0		 3,
0
0
5		 0
0
4,
7		 1
3
3
%
4.		 2
3
0
5,		 2
6
0
0
5,		 0
0
5,
4
  • EU growth in line European supply growth
  • Very strong demand in the US markets
  • Import from Europe increasing for the first time in several quarters
  • Russian consumers sensitive to current high prices
  • Generally good demand in South America and Asia

Source: Kontali

Industry supply outlook

20
0
8		 20
0
9		 20
10		 20
11		 20
12		 20
13		 Es
t
im
ate
20
14
s
ds
)		 Lo
w		 Y
/
Y g
wt
h
ro		 Hig
h		 Y
/
Y g
wt
h
ro
6
67		 77
0		 85
0		 9
05		 10
65		 10
29		 1,
11
0		 8
%		 1,
15
0		 12
%
3
6
3		 21
5		 11
7		 19
9		 3
28		 42
1		 40
0		 -5
%		 43
0		 2
%
12
5		 12
4		 12
6		 12
4		 14
0		 12
2		 12
0		 -1
%		 13
0		 7
%
12
3		 13
0		 12
9		 13
9		 14
3		 14
2		 13
0		 -8
%		 14
0		 -1
%
6
9		 8
8		 8
9		 10
3		 12
1		 12
1		 12
0		 -1
%		 12
5		 3
%
1,
3
47		 1,
3
28		 1,
3
10		 1,
47
1		 1,
79
7		 1,
8
3
6		 1,
8
8
0		 2
%		 1,
97
5		 8
%
Q
1 2
0
0
8		 Q
1 2
0
0
9		 Q
1 2
0
10		 Q
1 2
0
11		 Q
1 2
0
12		 Q
1 2
0
13		 E
S
TIM
AT
E
S
H
O
G t
(
ho
t
on
ne
s
us
an		 ds
)		 Lo
w		 Q
/
Q g
h
wt
ro		 Hig
h		 Q
/
Q g
h
wt
ro
No
rw
ay		 15
5		 16
3		 19
6		 19
0		 24
2		 23
2		 23
5		 1
%		 24
5		 6
%
C
hile		 8
0		 9
2		 3
0		 3
3		 67 10
9		 10
5		 -4
%		 11
0		 1
%
No
rth
A
ric
me
a		 3
0		 3
0		 3
1		 26 3
4		 3
2		 28 -13
%		 3
0		 -7
%
U
K		 29 27 3
2		 3
0		 35 28 25 -12
%		 27 -5
%
Ot
he
r		 15 21 19 23 3
1		 3
1		 3
0		 %
-2		 3
2		 %
5
To
ta
l		 3
0
8		 3
3
3		 3
07		 3
0
3		 40
8		 43
3		 42
3		 -2
%		 44
4		 3
%
Q
2-
Q
4 2
0
0
8		 Q
2-
Q
4 2
0
0
9		 Q
2-
Q
4 2
0
10		 Q
2-
Q
4 2
0
11		 Q
2-
Q
4 2
0
12		 Q
2-
Q
4 2
0
12		 E
S
TIM
AT
E
S
Q
2-
Q
4 2
0
13
H
O
G t
(
t
ho
on
ne
s
us
an		 ds
)		 Lo
w		 Q
/
Q g
wt
h
ro		 Hig
h		 Q
/
Q g
wt
h
ro
No
rw
ay		 12
5		 6
07		 65
4		 71
5		 8
23		 79
7		 87
5		 10
%		 9
05		 14
%
C
hile		 28
3		 12
3		 8
6		 16
6		 26
1		 3
12		 29
5		 %
-5		 3
20		 3
%
No
rth
A
ric
me
a		 95 95 95 9
8		 10
7		 8
9		 9
2		 3
%		 10
0		 12
%
U
K		 9
4		 10
3		 97 10
9		 10
9		 11
4		 10
5		 -8
%		 11
3		 -1
%
Ot
he
r		 4
5		 6
8		 6
9		 8
0		 9
0		 9
1		 9
0		 -1
%		 9
3		 2
%
To
ta
l		 1,
0
3
8		 9
95		 1,
0
0
3		 1,
16
8		 1,
3
8
9		 1,
40
3		 1,
45
7		 4
%		 1,
5
3
1		 9
%

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algae blooms etc. and 25 market developments.

MHG – 2014 volume guidance

Sa
lm
ie
on
sp
ec
s
H
O
G
ton
(
1
0
0
0
)
s		 Q
1
2
0
1
3
Ac
tua
l		 Q
2
2
0
1
3
Ac
tua
l		 Q
3
2
0
1
3
Ac
tua
l		 Q
4
2
0
1
3
Ac
tua
l		 2
0
1
3
Ac
tua
l		 Q
1
2
0
1
4
Es
t
im
te
a		 Q
Q
2-
4
2
0
1
4
Es
t
im
te
a		 2
0
1
4
Es
t
im
te
a
No
rw
ay
Gr
h
%
t
ow		 4
7
2
%
5
-		 5
4
1
6
%
-		 5
3
9
%
-		 6
9
2
%
-		 2
2
2
1
3
%
-		 4
7
1
%
-		 2
0
8
1
8
%		 2
5
5
1
4
%
C
(
)
h
i
le
1
Gr
t
h
%
ow		 8
1
5
%
-		 0
1
0
0
%
-		 6
4
0
%
-		 1
4
2
8
%		 2
8
3
0
%
-		 1
5
7
6
%		 4
2
1
0
7
%		 5
6
9
8
%
Ca
da
na
Gr
%
t
h
ow		 1
2
1
%
5		 9
1
6
%
-		 6
2
%
5
-		 6
%
4
7
-		 3
3
1
8
%
-		 6
1
%
5
-		 2
2
6
%		 2
8
1
%
5
-
Sc
t
la
d
o
n
Gr
t
h
%
ow		 1
0
4
%		 1
3
1
7
%		 1
4
6
%		 1
2
7
4
%		 4
8
2
0
%		 1
0
5
%		 4
0
2
%		 5
0
2
%
O
t
he
Un
i
ts
r
Gr
%
t
h
ow		 3
%
3
9
-		 4
%
2		 2
%
4
5
-		 3
%
3
1
-		 1
2
%
2
9
-		 3
%
7
-		 1
5
%
6
3		 1
7
%
4
7
To
ta
l
Gr
t
h
%
ow		 8
0
1
7
%
-		 7
9
2
0
%
-		 8
1
1
3
%
-		 1
0
3
0
%		 3
4
4
1
2
%
-		 8
0
0
%		 3
2
5
2
3
%		 4
0
5
1
8
%

Assets to be divested in Shetland and Orkneys are excluded from the figures

  • Forward prices of NOK 38.5 per kg for Q2-Q4 2014
  • However, higher 2H 2014 supply growth year on year
  • Relatively high investments in 2014 to cater for organic growth
  • Strategic focus areas

Outlook

  • Successful development of green-field feed capacity
  • Acquisitions in Norway and Chile
  • Integration of Morpol
  • High sea lice awareness in Norway – Chile remains concerning
  • Risk of adverse regulatory change in Norway somewhat reduced
  • Quarterly dividend of NOK 1.2 per share (post 10:1 reverse split)

Appendix

Q1 contract coverage and sales contract policy

  • Q1 2014 contract shares (% of guided volume):
  • Norway 42%
  • Scotland 69%
  • Canada 0%
  • Chile 36%
S
A
L
E
S
C
O
N
T
R
A
C
T
P
O
L
I
C
Y		 M
in
he
dg
in
te
(
1
)
g
ra		 Ma
he
dg
in
te
(
1
)
x
g
ra
(
)
(
)
No
2
3
rw
ay		 %
2
2.
5		 %
5
0.
0
C
h
i
le
(
3
)		 2
2.
5
%		 5
0.
0
%
Ca
da
na		 0.
0
%		 3
0.
0
%
Sc
lan
d
t
o		 4
0.
0
%		 7
5.
0
%
Ire
lan
d		 0.
0
%		 3
0.
0
%
Fa
roe
s		 %
0.
0		 %
3
0.
0
W
ig
h
d
te
e
av
er
ag
e		 2
2.
1
%		 0.
8
%
5

Note:

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

(2) External and internal contract (including financial futures)

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

  • Contracts typically have a duration of 3-12 months
  • Contracts are entered into on a regular basis
  • Policy opens for contracts of up to 36 month duration

Development in reference prices

fe
Re
ice
re
nc
e
p
r
s		 Q
4
2
0
1
3
O
N
K		 C
ha
ng
e v
s
Q
4
2
0
1
2		 Q
4
2
0
1
3
(
)
Ma
ke
t
4
r		 C
ha
ng
e v
s
Q
4
2
0
1
2
No
(
1
)
rw
ay		 N
O
K
4
0.
9
7		 5
5.
9
%		 E
U
R
4.
9
8		 3
9.
5
%
C
(
)
h
i
le
2		 O
N
K
5
5.
4
5		 %
5
2.
3		 S
U
D
9.
1
6		 %
4
3.
1
No
h
Am
ica
(
3
)
t
r
er		 N
O
K
4
2
6
5.		 8
2.
8
%		 U
S
D
4
8
7.		 1.
%
7
7

Notes:

(1) Average superior HOG price per kg (FCA Oslo)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 36.0 and USD 6.0 HOG

(3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb)

(4) Market price in local currency

Key performance indicators

les
d M
ket
ing
Sa
an
ar		 ket
MH
M
ar
Q
4.
13		 s M
H V
AP
EU
RO
PE
Q
4.
13		 MO
OL
RP
PR
OC
ESS
ING
Q
4.
13
Op
tio
l re
d o
the
r in
era
na
ve
nu
es
an
com
e		 4 5
18		 1 3
59		 1 3
57
l EB
Op
tio
IT
era
na
in
%
EB
IT m
arg		 10
6
2.3
%		 - 3
7
-2.
7%		 64
%
4.7
Q
4. 1
3		 Q
4. 1
2
(
K)
Gro
EBI
T p
kg
NO
up
er		 10.
26		 1.0
5
- C
trib
uti
fro
ing
(
NO
K)
m F
on
on
arm		 8.9
7		 0.2
2
trib
fro
ark
(
K)
- C
uti
m M
NO
ets
on
on		 1.0
2		 0.6
7
trib
fro
(
K)
- C
uti
m V
AP
NO
on
on		 -0.
36		 0.1
6
- C
trib
uti
fro
ol
sin
(
NO
K)
m M
Pro
on
on
orp
ces
g		 0.6
2		 na
olu
(
k to
es)
Gro
Ha
st V
up
rve
me
nn		 103
37
8		 103
21
5
Op
tio
nal
IT f
f o
rig
in (
NO
)
EB
K m
era
rom
so
urc
e o		 1 0
60		 10
8
nal
IT f
he
s (
)
Op
tio
EB
nit
NO
K m
ot
era
rom
r u		 - 2
6		 - 4
4
tio
nal
Gro
EB
IT
up
op
era		 1 0
34		 64

Norway: Operational EBIT/kg per region YTD

Ma
rin
e H
est
G
ain
fig
arv
rou
p -
m
ure
s
NO
K m
illio
n		 Q
4.
13		 Q
4.
12		 20
13		 20
12
Op
tio
l re
era
na
ven
ue		 6 7
43		 4 0
71		 19
23
0		 15
56
9
Op
tio
l E
BIT
DA
1)
era
na		 1 2
69		 234 3
97
2		 1
32
1
Op
tio
l E
BIT
1)
era
na		 1 0
34		 64 3
21
0		 6
43
EB
IT		 2 0
59		 45
5		 4 6
90		 96
9
t fi
Ne
ial
ite
na
nc
ms		 - 3
85		 58 -1
20
5		 - 1
80
Pro
fit
los
s f
the
riod
or
or
pe		 1 3
10		 28
9		 2 5
41		 41
3
Ca
flow
fro
sh
tio
m
op
era
ns		 - 5
1		 - 1
69		 1 9
82		 1 5
53
To
tal
set
as
s		 33
60
1		 23
31
7		 33
60
1		 23
31
7
(
D)
Ne
t in
ter
t-b
ring
de
bt
NIB
es
ea		 7 7
97		 5 3
81		 7 7
97		 5 3
81
of
(
NO
K)
Ea
rni
ha
31
.12
20
13
ngs
pe
r s
re
as		 0.3
4		 0.0
8		 0.6
7		 0.1
1
2)
Un
de
rly
ing
E
PS
of
31
.12
20
13
(
NO
K)
as		 0.1
8		 -0.
01		 0.5
4		 0.0
6
3)
Ne
t c
h f
low
ha
of
31
.12
.20
13
(
NO
K)
as
pe
r s
re
as		 -0.
19		 -0.
09		 -0.
04		 0.2
6
Ea
rni
ha
fte
lit
(
10:
1)
(
NO
K)
ngs
pe
r s
re
- a
r re
ver
se
sp		 3.4
0		 0.7
9		 6.7
1		 1.1
4
2)
PS
fte
(
1)
(
NO
K)
Un
de
rly
ing
E
lit
10:
- a
r re
ver
se
sp		 1.8
3		 -0.
09		 5.3
7		 0.6
3
3)
Ne
h f
low
ha
fte
lit
(
NO
K)
t c
as
pe
r s
re
- a
r re
ver
se
sp		 -1.
92		 -0.
86		 -0.
41		 2.5
5
4)
RO
CE		 20
.3%		 2.0
%		 18
.2%		 3.9
%
Eq
uity
tio
ra		 48
.7%		 50
.1%		 48
.7%		 50
.1%
NIB
D/E
ity
qu		 47
.6%		 46
.0%		 47
.6%		 46
.0%
Ha
st
vol
e (
tte
d w
eig
ht
ton
alm
)
rve
um
gu
nes
, s
on		 103
37
8		 103
21
5		 34
3 7
72		 39
2 3
06
)
Op
tio
l E
BIT
- N
OK
r k
5
era
na
pe
g
No
rwa
y		 12
.03		 3.6
2		 10
.83		 3.2
3
Sc
otl
d
an		 10
.23		 -1.
14		 12
.45		 3.8
0
Ca
nad
a		 10
.20		 81
-4.		 10
.19		 -3.
48
Ch
ile		 2.4
8		 -8.
17		 -2.
32		 -2.
26

1) Excluding change in unrealised gains/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provisions, results from

associated companies, restructuring costs, write-downs of fixed assets/intangibles and other non-operational items.

2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate.

3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects

(Purchase of shares in M orpol ASA and gain from the investment in Cermaq ASA are not included).

4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustment of biomass, onerous contracts

provisions and other non-operational items / Average NIBD + Equity, excluding fair value adjustment of biomass,

, onerous contracts provisions and, until fourth quarter, the investment in M orpol ASA,

Key financials

5) Operational EBIT per kg including allocated margin from Sales and M arketing (from own salmon).

Q4 segment overview

G
fig
Ma
rin
e H
est
aly
tic
al
arv
rou
p -
an
ure
s		 SO
UR
CE
S O		 F O
RIG
IN
NO
K m
illio
n		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 MH
G
rou
p
OP
ER
AT
IO
NA
L E
BIT
ING
MH
FA
RM		 7
89		 8
0		 4
8		 1
9		 - 3
6		 2
7		 9
28
SA
S A
G
MH
LE
ND
M
AR
KE
TIN
MH
M
ark
ets		 4
4		 3
5		 1
1		 1
6		 0 0 0 1
06
MH
VA
P E
uro
pe		 - 2
4		 - 3 0 0 0 0 - 1
0		 - 3
7
Mo
l P
sin
rpo
roc
es
g		 1
6		 8 0 0 0 0 4
1		 6
4
SU
OT
BT
AL		 8
25		 1
20		 5
8		 3
5		 - 3
6		 2
7		 3
1		 1
06
0
2)
Ot
he
nit
ies
r e		 -26 - 2
6
TO
TA
L		 8
25		 1
20		 8
5		 3
5		 - 3
6		 2
7		 5 1
034
Ha
st
vol
utt
ed
ig
ht
ton
(s
alm
)
rve
um
e g
we
nes
on		 68
58
1		 11
71
6		 5
72
6		 14
13
6		 1
34
5		 1
874		 10
3 3
78
3)
Op
(
NO
K)
tio
l E
BIT
r k
era
na
pe
g		 12.
03		 10
.23		 10
.20		 2.4
8		 -26
.76		 14
.48		 10
.26
f w
hic
h M
H M
ark
ets
- o		 0.6
4		 2.9
9		 1.8
6		 1.1
5		 0.0
3		 0.0
6		 1.0
2
f w
hic
h M
H V
AP
E
- o
uro
pe		 -0.
35		 -0.
26		 0.0
0		 0.0
0		 -0.
22		 0.0
0		 -0.
36
f w
hic
h M
ol
Pro
ing
- o
orp
ce
ss		 0.2
3		 0.6
5		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.6
2
4)
Pri
hie
/re
fer
ice
(
%
)
ent
ce
ac
vem
en
ce		 93
%		 98
%		 10
1%		 11
0%		 95
%		 95
%
pr
6)
Co
e (
%
)
ntr
act
co
ver
ag		 36
%		 73
%		 0% 27
%		 93
%		 4% 36
%
6)
Qu
(
%
)
alit
rio
ha
y -
su
pe
r s
re		 92
%		 90
%		 88
%		 91
%		 78
%		 98
%		 91
%
5)
(
NO
n)
Ex
tio
l ite
K m
illio
ce
p
na
ms		 -80 -17 -2 -1 -23 0 -12
4
5)
Ex
tio
l ite
r k
(
NO
K)
ce
p
na
ms
pe
g		 -1.
17		 -1.
49		 -0.
43		 -0.
06		 -16
.76		 0.0
0		 -1.
19
GU
IDA
NC
E
Q
1 2
014
ha
st
vol
utt
ed
ig
ht
ton
rve
um
e g
we
nes		 47
00
0		 10
00
0		 6
00
0		 14
50
0		 5
00		 2
00
0		 80
00
0
20
14
ha
st
vol
utt
ed
ig
ht
ton
rve
um
e g
we
nes		 25
4 5
00		 49
50
0		 28
00
0		 56
00
0		 8
00
0		 9
00
0		 40
5 0
00
Q
1 2
014
ntr
act
sh
co
are		 42
%		 69
%		 0% 36
%		 95
%		 na 45
%

1) Operational EBIT arising from non salmon speices and 3rd party fish not allocated to source of origin

2) Sterling White Halibut, Headquarter and Holding companies

3) Excluding Sterling White Halibut, Headquarter and Holding companies

4) MH Marktes' price achievement to third party, MH VAP Europe and Morpol Processing

5) Exceptional items impacting operational EBIT. Refer to Note 6 to theinterim financial statements for further details

6) Exluding Morpol

2013 segment overview

Ma
rin
e H
G
aly
tic
al
fig
est
arv
rou
p -
an
ure
s		 SO
UR
CE
S O		 F O
RIG
IN
NO
K m
illio
n		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 MH
G
rou
p
OP
ER
AT
IO
NA
L E
BIT
MH
FA
RM
ING		 2
24
5		 4
94		 2
88		 - 7
8		 - 3
0		 8
1		 3
00
1
MH
SA
LE
S A
ND
M
AR
KE
TIN
G
MH
M
ark
ets		 1
87		 1
05		 4
8		 1
3		 1 3 - 1
0		 3
47
MH
VA
P E
uro
pe		 - 3
7		 - 4 0 0 - 1 0 - 1
6		 - 5
8
Mo
l P
ing
rpo
roc
ess		 1
6		 8 0 0 0 0 4
1		 6
4
SU
BT
OT
AL		 2
41
0		 6
03		 3
37		 - 6
6		 - 3
0		 8
4		 1
5		 3
354
2)
Ot
he
nit
ies
r e		 -14
4		 - 1
44
TO
TA
L		 2
41
0		 6
03		 3
37		 - 6
6		 - 3
0		 8
4		 - 1
29		 3
21
0
Ha
st
vol
utt
ed
ig
ht
ton
(s
alm
)
rve
um
e g
we
nes
on		 22
2 4
94		 48
38
9		 33
05
9		 28
28
1		 5
88
3		 5
66
5		 34
3 7
72
3)
Op
tio
nal
E
BIT
r k
(
NO
K)
era
pe
g		 10.
83		 12
.45		 10
.19		 -2.
32		 -5.
02		 14
.86		 9.7
6
f w
hic
h M
H M
ark
ets
- o		 0.8
4		 2.1
6		 1.4
6		 0.4
5		 0.2
3		 0.4
8		 1.0
1
f w
hic
h M
H V
AP
Eu
- o
rop
e		 -0.
17		 -0.
08		 0.0
0		 0.0
0		 -0.
14		 0.0
0		 -0.
17
f w
hic
h M
ol
Pro
sin
- o
orp
ces
g		 0.0
7		 0.1
6		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.1
9
4)
/re
fer
(
%)
Pri
hie
ent
ice
ce
ac
vem
en
ce		 %
94		 %
92		 1%
10		 %
97		 %
98		 %
95
pr
Co
e (
%)
ntr
act
co
ver
ag		 %
37		 %
61		 %
32		 2% %
93		 6% %
37
Qu
(
%)
alit
rio
ha
y -
su
pe
r s
re		 88
%		 97
%		 83
%		 86
%		 93
%		 96
%		 92
%
5)
Ex
tio
l ite
(
NO
K m
illio
n)
ce
p
na
ms		 -18
8		 -17 -17 -18 -55 0 -29
5
5)
Ex
tio
l ite
r k
(
NO
K)
ce
p
na
ms
pe
g		 -0.
84		 -0.
36		 -0.
51		 -0.
64		 -9.
38		 - -0.
86
GU
IDA
NC
E
Q
1 2
014
ha
st
vol
utt
ed
ig
ht
ton
rve
um
e g
we
nes		 47
00
0		 10
00
0		 6
00
0		 14
50
0		 5
00		 2
00
0		 80
00
0
20
14
ha
st
vol
utt
ed
ig
ht
ton
rve
um
e g
we
nes		 25
4 5
00		 49
50
0		 28
00
0		 56
00
0		 8
00
0		 9
00
0		 40
5 0
00
Q
1 2
014
ntr
act
sh
co
are		 %
42		 %
69		 0% %
36		 %
95		 na %
45

1) Operational EBIT arising from non salmon speices and 3rd party fish not allocated to source of origin

2) Sterling White Halibut, Headquarter and Holding companies

3) Excluding Sterling White Halibut, Headquarter and Holding companies

4) MH Marktes' price achievement to third party, MH VAP Europe and Morpol Processing

5) Exceptional items impacting operational EBIT. Refer to Note 6 to theinterim financial statements for further details

6) Exluding Morpol

Q4 segment overview

MH
O
rat
ing
Un
its
pe		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 MH
Sa
les		 d M
ark
an		 eti
ng
No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 Ma
rke
ts		 VA
P E
U		 Mo
rpo		 1)
l O
the
r		 Eli
m		 MH
G
*
rou
p
Re
d o
the
r in
ven
ues
an
co
me		 2
56
1		 6
74		 2
60		 4
84		 9
8		 8
8		 4
518		 1
359		 1
357		 1
14		 - 4
76
9		 6
743
Op
ting
EB
ITD
A
era		 8
81		 1
06		 6
7		 4
2		 - 2
8		 3
0		 1
12		 - 1
5		 9
9		 - 2
4		 0 1
269
Op
ting
EB
IT
era		 7
89		 8
0		 4
8		 1
9		 - 3
6		 2
7		 1
06		 - 3
7		 6
4		 - 2
6		 0 1
034
F
air
Va
lue
ad
j o
n b
iom
ont
ts/
lise
d d
eriv
ate
ass
, c
rac
un
rea
s		 7
91		 6
3		 4
3		 3
2		 - 1 7
8		 0 0 0 - 7 0 1
000
R
ing
est
tur
st
ruc
co		 0 0 - 4 0 0 0 0 - 3
1		 0 0 0 - 3
4
O
the
rat
ion
al
item
r n
on-
ope
s		 0 0 0 0 0 0 0 0 0 0 0 0
In
/lo
fro
iate
d c
ies
co
me
ss
m
ass
oc
om
pan		 1
16		 0 0 0 0 0 0 0 0 0 0 1
16
of
fixe
ts/
W
rite
-do
d a
inta
ible
wn
sse
ng
s		 - 1 0 - 2 0 0 0 - 6 - 4
0		 - 8 0 0 - 5
7
EB
IT		 1
696		 1
44		 8
5		 5
1		 - 3
7		 1
05		 9
9		 - 1
08		 5
6		 - 3
3		 0 2
059
Co
ibu
tio
atio
nal
EB
IT f
S&
M
ntr
n t
o o
per
rom		 3
6		 4
0		 1
1		 1
6		 0 0 - 1
06		 3
7		 - 6
4		 3
1		 0
Op
tio
nal
EB
IT i
ncl
ntr
ibu
tio
n fr
S&
M
era
co
om		 8
25		 1
20		 5
8		 3
5		 - 3
6		 2
7		 0 0 0 5 0 1
034
Ha
st
/ s
ale
olu
rve
s v
me		 68
58
1		 11
71
6		 5
726		 14
13
6		 1
345		 1
874		 95
22
4		 17
24
7		 27
73
8
Op
IT/k
n fr
S&
tio
nal
EB
inc
l co
ntr
ibu
tio
M
era
g
om		 12
.03		 10
.23		 10
.20		 2.
48		 - 2
6.7
6		 14
.48
-of
wh
itch
S&
M		 0.
52		 3.
38		 1.
86		 1.
15		 - 0
.19		 0.
06

*Volume = harvested volume salmon in tonnes gutted weight

1)Inclusive MH Feed

Development in harvest volumes

2
0
0
7		 2
0
0
8		 2
0
0
9		 2
0
1
0		 2
0
1
1		 2
0
1
2		 2
0
1
3
To
ta
l		 To
ta
l		 To
ta
l		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l
No
rw
ay		 2
1
6
8.		 1
1
7
1.		 7
2
0
1.		 2
0
2.
5		 4
8.
4		 5
4.
1		 6
4
7.		 6
7.
4		 2
1
7.
5		 6
2.
7		 6
4.
0		 5
5
8.		 7
0.
1		 2
5
5.
3		 4
7.
3		 5
3.
5		 1
5
3.		 6
8.
6		 2
2
2.
5
C
h
i
le
(
1
)		 6
9
0.		 4
7
5.		 2
3
6.		 1
0.
6		 2.
7		 1.
2		 0
1
1.		 1
1.
0		 2
6.
0		 9.
7		 9.
6		 9
9.		 1
1.
0		 4
0.
2		 8.
3		 - 9
5.		 1
4.
1		 2
8.
3
Ca
da
na		 5
3
9.		 1
3
6.		 5
3
6.		 3
3.
5		 9.
5		 7.
8		 0
8.		 8.
7		 3
3.
9		 1
0.
6		 1
0.
6		 3
8.		 1
0.
8		 4
0.
2		 1
2.
2		 8.
9		 2
6.		 5.
7		 3
3.
1
Sc
t
lan
d
o		 1
3
1.		 3
3
2.		 3
7
7.		 3
3.
1		 1
0.
4		 1
3.
0		 0
1
4.		 1
2.
8		 0.
2
5		 9.
2		 1
1.
4		 0
1
3.		 6.
7		 4
0.
3		 9.
6		 1
3.
3		 8
1
3.		 1
1.
7		 4
8.
4
O
t
he
(
2
)
r		 5
1
0.		 8
1
1.		 0
1
5.		 1
6.
0		 4.
2		 3.
9		 2.
5		 4.
7		 1
5.
3		 4.
4		 3.
6		 3.
7		 4.
7		 1
6.
3		 2.
7		 3.
6		 0
2.		 3.
2		 1
1.
5
To
ta
l		 8
3
3
9.		 6
3
2
6.		 1
3
2
7.		 7
2
9
5.		 2
7
5.		 9
7
9.		 1
8
3.		 6
1
0
4.		 8
3
4
2.		 7
9
6.		 2
9
9.		 2
9
3.		 2
1
0
3.		 3
3
9
2.		 0
8
0.		 4
7
9.		 9
8
0.		 4
1
0
3.		 3
4
3.
8

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

2
0
0
7		 2
0
0
8		 2
0
0
9		 2
0
1
0		 2
0
1
1		 2
0
1
2		 2
0
1
3
To
ta
l		 To
ta
l		 To
ta
l		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l		 Q
1		 Q
2		 Q
3		 Q
4		 To
ta
l
No
rw
ay		 1
9
%		 2
%		 1
8
%		 0
%		 %
-3		 %
1
2		 %
8		 %
1
2		 %
7		 %
3
0		 %
1
8		 %
2
3		 %
4		 1
%
7		 %
-2
5		 %
1
6
-		 %
9
-		 %
2
-		 -1
3
%
C
h
i
le
(
1
)		 1
0
%
-		 1
7
%
-		 5
2
%
-		 7
1
%
-		 9
4
%		 2
9
%
-		 1
3
9
1
%		 6
3
%		 1
4
6
%		 2
5
5
%		 7
2
8
%		 1
1
%
-		 0
%		 5
5
%		 -1
5
%		 1
0
0
%
-		 4
0
%
-		 2
8
%		 -3
0
%
Ca
da
na		 1
6
%		 9
%
-		 1
%		 8
%
-		 -1
3
%		 1
4
%		 2
4
%		 8
%
-		 1
%		 1
2
%		 3
6
%		 4
%		 2
3
%		 1
9
%		 1
5
%		 1
6
%
-		 2
5
%
-		 4
7
%
-		 -1
8
%
Sc
t
lan
d
o		 0
%		 4
%		 1
7
%		 1
2
%
-		 3
%
5		 8
2
%		 6
%
5		 2
%
5		 5
1
%		 -1
1
%		 1
3
%
-		 8
%
-		 4
%
7
-		 -2
0
%		 4
%		 1
%
7		 6
%		 4
%
7		 2
0
%
O
(
)
t
he
2
r		 %
2
1		 %
1
2		 %
2
8		 %
7		 9
%		 1
2
%
-		 3
3
%
-		 1
6
%		 %
-4		 4
%		 8
%
-		 4
8
%		 0
%		 %
7		 -3
9
%		 2
%		 4
5
%
-		 3
1
%
-		 %
-2
9
To
ta
l		 8
%		 4
%
-		 0
%		 1
0
%
-		 3
%		 1
7
%		 3
0
%		 1
6
%		 1
6
%		 2
9
%		 2
4
%		 1
2
%		 1
%
-		 1
4
%		 1
7
%
-		 2
0
%
-		 1
3
%
-		 0
%		 1
2
%
-

Notes:

(1) Sold volume, harvested volume from Q2 2011 onwards

(2) Ireland and the Faroes

illi
NO
K m
on		 Q
1 2
010		 Q
2 2
010		 Q
3 2
010		 Q
4 2
010		 Q
1 2
01
1		 Q
2 2
01
1		 Q
3 2
01		 1 Q
4 2
01
1		 Q
1 2
012		 Q
2 2
012		 Q
3 2
012		 Q
4 2
012		 Q
1 2
013		 Q
2 2
013		 Q
3 2
013
l re
To
ta
ve
nu
e		 73
1		 66
0		 74
2		 1,
314		 99
4		 88
9		 80
5		 1,
170		 90
4		 85
4		 79
4		 1,
201		 95
3		 1,
129		 1,
113
ITD
A b
for
fai
lue
dju
EB
stm
ts
e
e
r v
a
a
en		 54 -3 17 12
2		 77 12
1		 14
3		 14
1		 10
7		 77 68 89 -2 21 11
9
f w
hic
h S
lm
(
d N
)
Fa
ing
UK
- o
a
on
rm
an
orw
ay		 0 0 14 65 76 91 41 -8 30 33 20 53 61 92 86
f w
hic
h o
he
fa
(
lize
&V
)
ing
Be
iet
t
-o
r
rm
na
m		 0 0 0 0 0 0 0 -9 -2 -3 -4 -10 2 0 -5
f w
hic
h s
nd
ssi
- o
eco
ary
pr
oce
ng		 54 -3 26 69 18 37 11
2		 16
3		 84 59 58 49 -65 -74 35
f w
hic
h G
ctiv
itie
- o
rou
p a
s		 0 0 -24 -11 -17 -7 -10 -5 -6 -12 -6 -4 -1 2 3
IT b
for
fai
lue
dju
EB
stm
ts
e
e
r v
a
a
en		 42 -17 0 99 49 92 11
5		 10
5		 74 47 34 46 -39 -15 82
(
)
f w
hic
h S
lm
ing
d N
Fa
UK
- o
a
on
rm
an
orw
ay		 0 0 11 55 63 78 29 -22 17 20 4 38 46 76 69
f w
hic
h o
he
fa
(
lize
)
ing
Be
&V
iet
t
-o
r
rm
na
m		 0 0 0 0 0 0 0 -16 -4 -4 -5 -12 1 -2 -7
f w
hic
h s
nd
ssi
- o
eco
ary
pr
oce
ng		 42 -17 12 56 2 20 96 14
9		 67 43 42 24 -84 -92 17
f w
hic
h G
ctiv
itie
- o
rou
p a
s		 0 0 -24 -11 -17 -7 -10 -5 -6 -12 -6 -4 -1 2 3
lue
dju
nd
din
Fai
Im
irm
Tr
De
ri
stm
ts,
t a
r v
a
a
en
pa
en
a
g		 0 0 -12 -22 3 -36 -7 -40
7		 -3 10 -21 68 27 13 -14
EB
IT		 42 -17 -12 77 52 55 10
8		 -30
2		 71 56 13 11
4		 -12 -3 69
AN
AL
YT
ICA
L D
AT
A F
AR
MI
NG
lum
(
)
Ha
HO
G
No
st v
rve
o
e
rw
ay		 n.a n.a n.a n.a 2,
025		 1,
348		 14
7		 2,
084		 1,
616		 1,
037		 1,
120		 2,
962		 2,
309		 34
7		 1,
030
kg
(
)
EB
IT p
No
1
er
rw
ay		 n.a n.a n.a n.a 14
.5		 13
.5		 -34
.4		 2.4 1.4 3.9 0.5 5.0 14
.1		 12
.1		 6.1
lum
(
)
Ha
HO
G
UK
st v
rve
o
e		 4,
794		 7,
01
1		 1,
604		 6,
137		 3,
064		 4,
917		 6,
128		 6,
694		 6,
006		 6,
740		 5,
459		 5,
201		 2,
473		 6,
662		 7,
201
kg
(
)
EB
IT p
UK
1
er		 8.5 14
.2		 7.0 8.9 11
.1		 12
.2		 5.5 -4.
1		 2.5 2.4 0.6 4.4 5.6 10
.8		 8.7
far
EB
IT m
in
mi
arg
ng		 28
%		 46
%		 4% 24
%		 27
%		 15
%		 10
%		 -14
9%		 3% 6% 3% 3% 35
%		 27
%		 14
%
AN
AL
YT
ICA
L D
AT
A S
EC
ON
DA
RY
PR
OC
ESS
ING
d v
lum
du
ht
Pro
eig
ct w
ces
se
o
e,
pro		 16
221
,		 15
817
,		 16
273
,		 22
423
,		 17
816
,		 12
449
,		 11
445
,		 18
890
,		 16
045
,		 14
579
,		 15
110
,		 23
013
,		 19
389
,		 17
869
,		 19
065
,
kg,
du
eig
ht
EB
IT p
ct w
er
pr
o		 2.6 -1.
0		 0.8 2.5 0.1 1.6 8.4 7.9 4.2 3.0 2.8 1.1 -4.
3		 -5.
2		 0.9
EB
IT m
in
da
sin
arg
sec
on
ry
pro
ces
g		 6% -3% 2% 5% 0% 3% 17
%		 15
%		 9% 7% 6% 2% -9% -10
%		 2%
Wo
rki
ita
l
far
mi
in
lu
din
bio
at
t
ng
cap
ng,
c
g
ma
ss
cos		 n.a n.a 29
3		 30
0		 31
0		 29
6		 46
1		 58
0		 53
1		 48
8		 53
9		 54
0		 46
4		 52
5		 52
3
rki
l se
da
Wo
ita
sin
ng
cap
con
ry
pro
ces
g		 n.a n.a 36
3		 51
3		 70
5		 66
6		 53
8		 65
8		 47
4		 49
5		 44
8		 59
1		 56
4		 50
3		 62
1

2014 Net capital expenditure guidance

Guidance on financial commitments and cost of debt

Dividend policy

  • The dividend level shall reflect the present and future cash generation potential of the Company
  • Marine Harvest will target a net interest-bearing debt/equity ratio of less than 0.5x
  • When target level is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividend
  • Dividend policy operationalized by defining a target average NIBD for each calendar year
  • Dividends applied to manage NIBD around the target level
  • 2014 NIBD target to be defined in Q1 2014 report
Ha
t v
lum
(
H
O
G
)
rve
s
o
e		 E
B
I
T
(
1
)
kg
p
er		 N
I
B
D
Ow h
ip
%
ne
rs		 2
0
1
2		 2
0
1
3		 Q
4
2
0
1
2		 Q
4
2
0
1
3		 2
0
1
2		 2
0
1
3		 Q
4
2
0
1
2		 Q
4
2
0
1
3		 3
1
/
1
2
/
2
0
1
3
No
Se
va
a		 4
8
%		 3
4,
5
2
9		 3
4,
9
1
0		 9,
5
2
8		 1
3,
1
3
4		 4.
3		 1
3.
4		 4.
4		 1
4.
4		 3
2
3
  • Leading integrated salmon producer in Northern Norway
  • 33.33 wholly owned licenses
  • 4 partly owned licenses
  • Marine Harvest has an ownership in Nova Sea of ~48% through direct and indirect shareholdings
  • 2013 dividends of NOK 40m (Q2)
  • Marine Harvest's share NOK ~20m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • NOK 111.8 million in Q4 2013
    • IFRS adjustment of biomass NOK 59.2m

Overview of financing

  • EUR 775m Facility Agreement
  • Maturity – Q1 2015
  • Lenders: DNB, Nordea, Rabobank and ABN Amro
  • Semi annual repayments of EUR 16m (current availability EUR 695m)
  • Covenants:
  • Declining NIBD/EBITDA(1) ratio
  • 3.25x up to Q4 2012
  • •3.25 up to Q2 2014
  • •3.00 thereafter
  • 40% equity ratio
  • Convertible bond
  • EUR 350 issued in May 2013
    • Tenor 5 years, annual coupon 2.375%, conversion price EUR 9.9088
  • NOK 1,250m bond issued in February 2013
  • Tenor 5 years, NIBOR + 3.5%

Debt distribution and interest rate hedging

(1)
D
E
B
T
V
O
L
U
M
E
H
E
D
G
E
D
A
N
D
F
I
X
E
D
R
A
T
E
S
O
F
I
N
T
E
R
E
S
T
R
A
T
E
H
E
D
G
E
S
(
M
A
R
C
H-
M
A
R
C
H
)
C
U
R
R
E
N
C
Y		 D
E
B
T		 2
0
1		 3 2 0
1
4		 2
0		 1
5		 2
0		 1
6		 2
0
1		 7 2
0
1
8-		 2
0
2
1
(2)
3
1
/
1
2
/
2
0
1
3		 No
min
al v
alue		 te(3
Fixe
d ra		 ) N
inal
lue
om
va		 te(3
Fixe
d ra		 ) N
inal
lue
om
va		 te(3
Fixe
d ra		 ) N
inal
lue
om
va		 te(3
)
Fixe
d ra		 No
min
al v
alue		 te(3
Fixe
d ra		 ) N
inal
lue
om
va		 te(3
)
Fixe
d ra
E
U
R
m		 6
0
6.
0		 2
6
4
2.		 1.
8
4
%		 6
6
5
1.		 1.
6
3
%		 9
8
8
7.		 2.
3
8
%		 8
8
9
7.		 1.
8
4
%		 4
6
2
6.		 1.
5
5
%		 0
2
8
3.		 2.
5
4
%
U
S
D
m		 2
0
0.
8		 0
2
1
5.		 2.
5
5
%		 5
2
1
5.		 2.
6
1
%		 0
2
1
6.		 2.
6
4
%		 0
2
1
5.		 2.
6
4
%		 5
1
0
7.		 2.
4
1
%		 5
1
0
7.		 2.
4
1
%
G
B
P
m		 3
6
5.		 2.
5
5		 3.
0
3
%		 0
3.
5		 2.
8
2
%		 2.
5
5		 2.
9
1
%		 0
4
7.		 2.
3
%
5		 2
3.
5		 2.
8
1
%		 2
3.
5		 2.
8
1
%
O
he
(
N
O
K
)
t
r
m		 1,
7
1
7.
8

Market value of IRS contracts in MNOK (31/12/13): -311.1

Mark to market valuation effect in Q4(4): -25.7

Difference in fixed vs floating rate settled in cash in Q4 -29.6

Notes:

(1) MHG choses March as the starting month for all new interest hedging contracts

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

(3) Financing margin not included

(4) Quarterly change in market value booked against P/L and against other comprehensive income

POLICY:

  • External interest bearing debt is distributed as follows: EUR 61%, USD 13%, GBP 4%, other currencies 22%
  • Marine Harvest ASA shall hedge 100% of the Group's long-term interest-bearing debt by currency with fixed interest or interest rate derivatives for the first 5 years and 50% for the 5 following years. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD and GBP shall not be hedged

Please note that the current portfolio deviates from the policy due to inter alia the recent bond and convertible bond issuance. The policy will be reviewed.

Policy last updated 7 February 2012.

Hedging and long term currency exposure

POLICY

  • EUR/NOK
  • Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of one year. The annual hedging shall be evenly distributed across the months of the year.
  • USD/CAD
  • Marine Harvest shall not hedge the USD/CAD exposure.
  • USD/CLP
  • Marine Harvest shall not hedge the USD/CLP exposure
  • Internal transaction hedging relating to bilateral sales contracts
  • As of 1 April 2011, all bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and NOK
  • The operating entities hedge this exposure towards the parent company. In accordance with the general hedging policy, this exposure is not hedged towards external counterparties
  • The purpose of the internal hedging is to allow for a more accurate comparison between the MH Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT

Long term currency hedging

CURRENT PORTFOLIO 31/12/2013

E
U
R		 /
N
O
K		 U
S
D
/
C		 A
D		 U
S
D
/
C		 L
P
S
T
R
A
T
E
G
I
C
C
U
R
R
E
N
C
Y
H
E
D
G
I
N
G		 M
E
U
R		 Ra
te		 M
U
S
D		 Ra
te		 M
U
S
D		 Ra
te
2
0
1
4		 2
0
0		 8.
1
9
/
f
fe
f c
Q
P
L
t o
tra
ts
in
3
e
c
on
c		 4 (
M
N
O
K
)
M
N
O
K
Ma
ke
lu
3
0
/
0
9
/
2
0
1
3
t v
r
a
e		 6
C
(
)
ha
1
ng
e		 5
6
-
/
/
Ma
ke
t v
lu
3
1
1
2
2
0
1
3
r
a
e		 5
0
-

Note:

(1) Quarterly changes in market value booked against equity until maturity

S
G
C
C
S
D
E
I
N
A
T
E
D
M
A
R
K
E
T
U
R
R
E
N
I
E
No
rw
ay		 E
U
R
C
h
i
le		 S
U
D
Ca
da
na		 S
U
D
Sc
t
lan
d
o		 G
B
P
V
A
P		 E
U
R
Fa
roe
s		 D
K
K
Co
l
d
W
Sp
ies
te
a
r
ec		 N
O
K
As
ia		 S
U
D
f
I
t
m
p
a
c
o
c
r
u		 /
r
e
n
c
y		 i
t
n
e
r
e		 t
t
s
r
a
e		 m
o
v
A
t
e
r
a
g
e
r
a
e
s
v		 1
C
A
D		 1
E
U
R		 1
G
B
P		 1
U
S
D
Q
Q
4
2
0
1
3
4
2
0
1
2
v
s		 %
0.
6		 %
1
1.
8		 %
7.
3		 %
6.
5
f
E
d
t
t
n
o
q
u
a
r
e
r
r
a
e
s		 C
1
A
D		 1
E
U
R		 G
1
B
P		 S
1
U
D
3
1
/
1
2
/
1
3
3
0
/
9
/
1
3
s.
v		 2.
0
%
-		 3.
3
%		 3.
6
%		 1.
3
%
  • Impact on Profit and Loss (versus Q4 2012)
  • Currency impact on net financial items

  • Negative impact of NOK 40m (Positive NOK 123m)

  • Impact from currency on Financial Position (versus 30/9/13)

  • Increase in interest-bearing debt due to currency NOK 187m

Fair value adjustment of biomass

  • Under IFRS (IAS 41) the company is required to value biological assets at a fair market value.
  • During the second half of 2011, the largest salmon farming companies in Norway, with support from audit firms, formed an industry working group where the objective was to reach a converged and improved common approach for estimating the fair value of the biomass in accordance with IAS 41.
  • Following the working group's conclusions, Marine Harvest has with effect from the fourth quarter 2011, refined its calculation model. The model enhancements have been made to capture the fair value development during the lifetime of the fish in an improved manner. The revised model split the biomass into 3 groups based on size:
  • Fish below 1 kg live weight ("smolt") is valued at accumulated cost
  • Fish between 1 kg and 4 kg live weight (immature fish) incorporates a proportionate share of the expected net profit at harvest
  • Fish above 4 kg (mature fish) is valued at the expected net value
  • The main drivers in the valuation are:
  • Volume of biomass (and average weight per site) at every reporting date
  • Expected cost at harvest
  • Expected value at harvest (based on externally quoted forward prices where applicable and/or the most relevant price information available for the period in which the fish is expected to be harvested)
  • Operationally, the value of biomass is reported at cost. In the Group accounts, "fair value adjustments" are added to costs of each operating unit and combined, the two elements constitute the fair value of biomass. The change in "fair value adjustment" is income or expense classified on a separate line in the Profit and Loss statement in each period. This item is not included in Operational EBIT.

Tax losses carried forward (YE 2013)

M
in
Ha
G
3
1.
1
2.
2
0
1
3
t
ar
e
rv
es
ro
up
N
O
K m
i
l
l
ion		 Re
ise
d
co
g
n		 Un
ise
d
re
co
g
n		 To
ta
l
C
h
i
le		 1
8
6		 0 1
8
6
S
U
A		 5
8		 3 6
1
Ge
rm
an
y		 5
8		 0 5
8
T
he
Ne
t
he
lan
ds
r		 4
9		 0 4
9
Ire
la
d
n		 3
6		 0 3
6
Fr
an
ce		 2
0		 1
4
6		 1
6
6
Po
la
d
n		 1
8		 1
1
1		 1
2
9
V
ie
tn
am		 1
2		 2
7		 3
9
O
he
t
r		 1
1		 5 1
6
To
ta
l		 4
4
8		 2
9
2		 7
4
0
  • Most of the deferred tax assets have been recognised on the statement of financial position
  • The NOL's will be used to offset taxable profit in the countries going forward
  • The utilisation of the deferred tax asset on NOL's gives rise to a tax expense in the accounts which do not normally have any cash effect

The Board's current authorisations

  • The Board was given the following proxies at the AGM
  • General share capital increase (up to 10% of share capital)
    • Proxy to set aside shareholders pre-emption right to subscribe
  • Targeted authority to increase share capital
    • Issuance of up to 82m shares in one or more occasion
    • Authority may only be used to issue shares to shareholders in Cermaq ASA as full or partial consideration for transfer of shares in Cermaq ASA to the company.
  • Purchase of own shares (up to 10% of share capital)
    • Maximum price: NOK 120 per share
    • Minimum price: NOK 7.5 per share
  • Issuance of new convertible bond
  • Maximum amount: NOK 3,200m
  • Maximum number of shares to be issued as settlement: 64m
  • Authorisation to issue dividend from EGM of 15 November
  • Up to NOK 500m

Sensitivities

E
S
T
I
M
A
T
E
D
S
E
N
S
I
T
I
V
I
T
I
E
S
O
N
A
N
N
U
A
L
R
E
S
U
L
T
S		 O
P.
E
B
I
T
E
F
F
E
C
T		 C
A
S
H
F
L
O
W
E
F
F
E
C
T		 D
R
I
V
E
R
N
O
K
i
l
l
io
m
n
C
f
O
1
(
1
)
ha
in
lo
ba
l a
lm
ice
N
K
ng
e
g
ve
rag
e s
a
on
p
r
o		 0
4
5		 3
0
(
2
)
7		 An
l
ha
t v
lum
nu
a
rve
s
o
e
C
ha
in
to
ta
l
ha
t v
lum
f
1
0,
0
0
0
to
(
3
)
ng
e
rve
s
o
e o
nn
es		 6
0		 5
5
(
2
)		 Ma
ina
l v
lum
rg
o
e
C
ha
in
lo
ba
l
fee
d
ice
f
N
O
K
1 p
kg
ng
e
g
p
r
o
er		 4
3
0
(
4
)		 6
3
5
(
4
)
(
5
)		 Fe
d c
ion
t
e
on
su
mp

Notes:

(1) Assuming all sales at spot prices, Please see contract policy and estimated contract rates in the latest quarterly presentation

(2) Normally 30 days credit on sale of salmon, effect assumes stable volume between years and across months

(3) Assuming EBIT per kg of NOK 6

(4) Annual harvest volume converted to live weight multiplied with feed conversion ratio (335 divided by 0.83 multiplied with 1.3 and NOK 1 = ~635) Assuming stable production and feed consumption between years and across months

(5) 60 days credit time on feed

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