Bakkafrost P/f

Earnings Release • May 12, 2015

All three segments delivered good results

All three segments delivered good results

Bakkafrost delivered a total operational EBIT of DKK 235 million in Q1 2015.

This is an increase of 27%, compared with the operational EBIT in Q1 2014, which

was DKK 186 million. Result after tax in Q1 2015 was DKK 132 million.

The total volumes harvested in Q1 2015 were 9,726 tonnes gutted weight, which is

an increase of 5%, compared with 9,269 tonnes harvested in Q1 2014. The farming

segment delivered an operational EBIT of DKK 195 million in Q1 2015. The value

added product segment, which produced 4,525 tonnes in Q1 2015, made an

operational EBIT of DKK 22 million. The fishmeal, oil and feed segment delivered

an operational EBIT of DKK 55 million in Q1 2015.

Commenting on the result, CEO Regin Jacobsen said:

"We are satisfied with the good result in Q1 2015 and the positive development

in all our three seg­ments, which all delivered good results. Bakkafrost started

producing feed with cleaned fish oil, and the first farming site got its ASC

certification this quarter. These developments show that Bakkafrost continuously

works to improve its operations. Bakkafrost is undertaking significant

investments, which are proceeding well. Our new wellboat "Hans á Bakka" is

expected to be delivered in June this year and will be in the Faroe Islands

around two weeks later. The big construction at Glyvrar is proceeding according

to plan, and the buildings are beginning to take shape."

Bakkafrost released 2.2 million smolts in Q1 2015, which is in line with the

company's smolt release plan.

The catch of pelagic fish around the Faroe Islands has been good in Q1 2015.

Havsbrún has purchased 75 thousand tonnes of raw material during the first three

months in 2015.

Bakkafrost's net interest bearing debt at the end of Q1 2015 was DKK 227

million, compared with DKK 233 million at year-end 2014. Bakkafrost had undrawn

credit facilities of approximately DKK 971 million at the end of Q1 2015, and

the equity ratio was 61%.

OUTLOOK

Market

The salmon market's global demand growth has increased the last years due to

high growth rate in emerging markets and a stable growth in other markets. A

market balance seems to request a yearly supply growth around 9%. Global supply

growth is expected to be limited in 2015 to around 5% and only 2-4% in 2016.

Production capacity is close to full utilization and further expansion relates

to high investments.

Farming

Bakkafrost expects to harvest 49,000-51,000 tonnes gutted weight in 2015.

Bakkafrost's forecast for smolt release in 2015 is 10.4 million pieces. The

estimates for harvesting volumes and smolt releases is as always dependent on

the biological situation.

Value added products (VAP)

Bakkafrost's long-term strategy is to sell around 40-50% of the harvested

volumes of salmon as value added products on fixed price contracts. The

contracts last for 6 to 12 months. Bakkafrost has signed contracts covering

around 80% of the VAP capacity for the rest of 2015.

Fish oil, -meal and feed (FOF)

The outlook for the production of fishmeal and fish oil has improved as the

available raw material for the production has increased. The quotas for catching

blue whiting in the North Atlantic have increased. With increased quotas,

Bakkafrost is optimistic that the raw materials needed for our pro­duct­ion of

high quality salmon feed will be available.

Depending on the purchase from external customers, the sale of fish feed is

expected to be 83,000-87,000 tonnes.

Investments

Bakkafrost has announced an investment plan for the period until 2017, latest

updated in August 2014. The purpose of the investment plan is to continue to

have one of the most costs efficient value chains in the farming industry, carry

out organic growth, increase flexibility and reduce the biological risk to meet

the future consumers' trends and to be more end-customer orientated.

The total investments for the period 2014-2017 were announced to be DKK 1,370

million including maintenance CAPEX. Investments in 2015 are expected to be DKK

550 million.

Financial

Improved market balances in the world market for salmon products and costs

effective production will likely improve the financial flexibility going

forward. A high equity ratio with the Group's bank fin­anc­ing and the issuance

of bonds makes Bakkafrost's financial situation strong. This enables Bakka­frost

to carry out its investment plans to further focus on strengthening the Group,

M&A's, organic growth opportunities and fulfil its dividend policy in the

future.

Contacts:

Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)

Gunnar Nielsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

About Bakkafrost:

Bakkafrost is the largest salmon farmer in the Faroe Islands. The Group is fully

integrated from feed production to smolt, farming, VAP and sales. The Group has

production of fishmeal, fish oil and salmon feed in Fuglafjørður. The Group

operates licenses on 14 farming fjords. The Group has primary pro­cess­ing in

Klaksvík and Kollafjørð and secondary processing (VAP) in Glyvrar and

Fuglafjørður. The head­quarter is located in Glyvrar, and the company has a

total of 700 employees.

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