Bakkafrost P/f

Earnings Release • Feb 24, 2015

Bakkafrost's Best Result Ever

Bakkafrost's Best Result Ever

The Bakkafrost Group delivered a total operating

EBIT of DKK 227.5 million in Q4 2014. The combined

farming and VAP segment made an operational EBIT of

DKK 213.8 million in Q4 2014. The Farming segment

made an operational EBIT of DKK 181.4 million. The

global salmon spot prices increased during the

quarter. Bakkafrost's VAP contract prices remained

high, and the VAP segment made an operational EBIT

of DKK 32.4 million in Q4 2014. The EBITDA for the

FOF segment was DKK 40.8 million in Q4 2014. For

2014, Bakkafrost made an operational EBIT of DKK

833.8 million.

"We are very content with the result for the 4th

quarter of 2014 and the year 2014. Wee achieved a

record high operating result both for the quarter

and the year, driven by operational improvements in

all segments. We are well positioned to meet future

challenges and have entered into an exciting new

year with the new well boat being delivered in the

summer. With the well boat and other investments,

Bakkafrost will continue to improve its operations

and reduce biological risk," says CEO Regin Jacobsen.

The Group made a profit for the quarter of DKK 222.4

million (DKK 137.9 million). For 2014, the profit

was DKK 647.1 million (DKK 589.2 million).

The total volumes harvested in Q4 2014 were 12,651

tonnes gutted weight (11,097 tgw). The total

harvested volumes for 2014 were 44,013 tonnes gutted

weight (41,268 tgw).

Bakkafrost transferred 3.2 million smolts in Q4 2014

(2.8 million), which is in line with the company's

plans. In 2014, 10.4 million smolts have been

transferred (9.5 million). In Q3 2014, Bakkafrost

adjusted its forecast for the smolt release in 2014

to 10.7 million. The reason is that some smolts,

planned to be released in December 2014, would be

released early 2015.

In accordance with the Group's dividend policy,

Bakkafrost aims at giving its shareholders a

competitive return on their investment, both through

payment of dividends and by securing an increase in

the value of the equity through positive operations.

Bakkafrost's financial position is strong with a

healthy balance sheet, a competitive operation and

undrawn available credit facilities. The Board of

Directors has therefore decided to propose to the

Annual General Meeting that DKK 6.00 (NOK 6.90*) per

share shall be paid out as dividend. This

corresponds to approximately DKK 293.1 million (NOK

337.0* million). The long-term goal of the Board of

Directors is that 30-50% of earnings per share shall

be paid out as dividend. The proposed dividend

corresponds to 49% of adjusted earnings for 2014 and

is at the top end of the range.

In Q4 2014, the associated company P/F Faroe Farming

harvested 1,969 tonnes gutted weight (1,889 tgw).

For 2014, Faroe Farming harvested 4,957 tonnes

gutted weight (6,053 tgw).

The combined farming and VAP segment made an

operational EBIT of DKK 213.8 million (DKK 124.9

million) in Q4 2014. In 2014, the combined farming

and VAP segment made an operational EBIT of DKK

763.9 million (DKK 551.9 million).

The farming segment made an operational EBIT of DKK

181.4 million (DKK 130.8 million) in Q4 2014. The

spot prices were strong in Q4 2014 and in Q4 2013.

The main reason for a stronger result in Q4 2014 is

that Q4 2013 was affected by the early harvest of

the first site with suspicion of Neoparamoeba

perurans. In 2014, the operational EBIT was DKK

694.0 million (DKK 642.4 million).

The VAP segment made an operational EBIT of DKK 32.4

million (DKK -5.9 million) for Q4 2014. In 2014, the

operational EBIT was DKK 69.9 million (DKK -90.5

million). There is normally a time lag between the

changes in the spot prices and the changes in the

contract prices. The contract prices have increased

significantly from the level in 2013, due to the

high salmon spot prices. Therefore, the VAP result

for both Q4 2014 and for 2014 has improved, compared

with last year.

The third segment - FOF (fishmeal, oil and feed),

made an operational EBITDA of DKK 40.8 million (DKK

21.3 million) in Q4 2014. The operational EBITDA for

2014 amounted to DKK 181.6 million (DKK 125.8

million). The increase in the EBITDA is primarily

due to higher production of fishmeal and fish oil.

In Q4 2014, Havsbrún sourced 21,918 tonnes of raw

material (18,432 tonnes) and in 2014, Havsbrún

sourced 193,231 tonnes of raw material (160,581

tonnes).

Bakkafrost established a share saving plan for its

employees for 2014. Employees could purchase shares

for maximum 5 percent of the monthly basic salary.

After two full years of ownership and continuous

employment, the company will allocate one bonus

share, for every share bought in connection with

this offer for 2014. A similar share saving plan for

its employees for 2015 has been implemented.

On the 24th of April 2014, Bakkafrost - via its 100%

owned subsidiary Havsbrún - acquired an additional

41.15% in Hanstholm Fiskemelsfabrik. After the

acquisition, Bakkafrost owned 81.01% of the company.

The 9th of May 2014, Bakkafrost divested all its

shares in Hanstholm Fiskemelsfabrik to FF Skagen

A/S. In return, Bakkafrost, via its subsidiary P/F

Havsbrún, received a 17% share interest in FF Skagen

A/S. The investment is a strategic investment and

part of the consolidation of the fishmeal and fish

oil industry.

The Bakkafrost Group had a net interest bearing debt

at the end of Q4 2014 amounting to DKK 232.7 million

(DKK 638.6 million at year-end 2013) including

deposits and losses on financial deriveatives

relating to the interest bearing debt. Bakkafrost

had undrawn credit facilities of approximately DKK

958.1 million, of which DKK 15.0 million were

restricted at the end of Q4 2014.

Bakkafrost's equity ratio is 60%, compared to 54% at

the end of 2013.

INCOME STATEMENT

The operating revenues amounted to DKK 757.3 million

in Q4 2014 (DKK 666.6 million). The increase is due

to improved salmon prices on both the spot and the

contract market. For 2014, the operating revenues

amounted to DKK 2,683.3 million (DKK 2,491.1

million).

Operational EBIT in Q4 2014 was DKK 227.5 million

(DKK 125.9 million). Improved margins in all

segments in Q4 2014 compared to Q4 2013 resulted in

an improved overall operational EBIT margin. All

segments had a positive contribution in Q4 2014,

while the VAP segment had a negative margin in Q4

2013. For 2014, the operational EBIT was DKK 833.8

million (DKK 587.0 million).

A fair value adjustment of the Group's biological

assets has been recognised in Q4 2014 amounting to

DKK 51.6 million (DKK 94.2 million). The adjustment

is mainly due to higher salmon spot prices at the

end of Q4 2014, compared to the beginning of the

quarter. For 2014, the fair value adjustment is DKK

-11.5 million (DKK 115.4 million).

In Q4 2014, no changes were made to the provisions

of onerous contracts, as no contracts were onerous

at the beginning and at the end of the quarter. For

2014, Bakkafrost has made reversion of previous made

provisions for onerous contracts of DKK 70.9 million

(DKK -24.8 million). The reversion is mainly due to

lower salmon spot prices at year-end 2014, compared

to year-end 2013, and higher contract prices in VAP.

At year-end 2013, the NOS salmon price was NOK

53.08, compared to NOK 43.57 at the end of Q4 2014.

In Q4 2014, there was a loss from associated

companies amounting to DKK -4.0 million (DKK 11.2

million). For 2014, the result from associates was

DKK -0.8 million (DKK 23.8 million).

Net interests in Q4 2014 were DKK 38.9 million (DKK

7.2 million). A positive unrealised exchange rate

adjustment of DKK 46.8 million related mainly to the

bond loan of NOK 500 million is posted in Q4 2014.

For 2014, net interests were DKK 6.9 million (DKK

26.0 million).

Net taxes in Q4 2014 amounted to DKK -91.7 million

(DKK -36.1 million). For 2014, net taxes amounted to

DKK -252.1 million (DKK -138.1 million).

The result for Q4 2014 was DKK 222.4 million (DKK

137.9 million). The result for 2014 was DKK 647.1

million (DKK 589.2 million).

SEGMENTS

Of the total harvested volumes in Q4 2014, 37% (45%)

went for the production of VAP products, and 63%

(55%) were sold as whole gutted salmon. For 2014,

45% (44%) went for the production of VAP products,

and 55% (56%) were sold as whole gutted salmon.

FARMING:

In Q4 2014, the operating revenue for Bakkafrost's

farming segment was DKK 630.4 million (DKK 525.9

million) and for 2014, it was DKK 2,099.5 million

(DKK 1,991.6 million).

Operational EBIT, which is EBIT before fair value

adjustments on biological assets, provisions for

onerous contracts and income from associates,

amounted to DKK 181.4 million in Q4 2014 (DKK 130.8

million), and for 2014, it was DKK 694.0 million

(DKK 642.4 million).

Operational EBIT/kg for the farming segment was DKK

14.34 (NOK 16.53) in Q4 2014, compared to DKK 11.79

(NOK 13.02) in Q4 2013. Q4 2013 was affected by the

early harvest on the first site with suspicion of

Neoparamoeba perurans and had a negative effect on

the margin in Q4 2013. Operational EBIT/kg for 2014

was DKK 15.77 (NOK 17.65), compared to DKK 15.57

(NOK 16.27) for 2013.

VALUE ADDED PRODUCTS (VAP):

The operating revenue for the value added products

segment amounted to DKK 259.0 million (DKK 202.6

million) in Q4 2014. For 2014, the revenue was DKK

913.4 million (DKK 666.2 million). The increase in

the revenue from Q4 2013 to Q4 2014 is 28%, while

the volumes used for VAP were almost the same in Q4

2014 as in Q4 2013. Apart from better contract

prices in 2014 than in 2013, the reason for the

increased revenue is that the build-up of inventory

of finished products in Q3 2014 was sold in Q4 2014.

Operational EBIT amounted to DKK 32.4 million (DKK

-5.9 million) in Q4 2014, corresponding to an

operational EBIT of DKK 6.39 (NOK 7.36) per kg

gutted weight in Q4 2014, compared to DKK -1.17 (NOK

-1.29) per kg gutted weight in Q4 2013. The increase

in the operational EBIT margins is due to higher

contract prices. The VAP segment purchases its raw

material (fresh salmon) at spot prices each week.

For 2014, operational EBIT amounted to DKK 69.9

million (DKK -90.5 million), corresponding to an

operational EBIT of DKK 3.30 (NOK 3.69) per kg

gutted weight in 2014, compared to DKK -4.93 (NOK

-5.16) per kg gutted weight in 2013.

FOF (FISHMEAL, FISH OIL AND FISH FEED):

The operating revenue for the FOF segment amounted

to DKK 225.2 million (DKK 252.5 million) in Q4 2014,

of which DKK 173.1 million (DKK 150.7 million)

represents sales to Bakkafrost's farming segment,

corresponding to 76.9% (59.7%). For 2014, the

revenue was DKK 970.7 million (DKK 1,083.0 million),

of which DKK 613.3 million (DKK 631.3 million)

represents sales to Bakkafrost's farming segment,

corresponding to 63.2% (58.3%).

Operational EBITDA was DKK 40.8 million (DKK 21.3

million) in Q4 2014, and the operational EBITDA

margin was 18.11% (8.45 %). The margin reflects the

favourable development in raw material prices.

Havsbrún sources raw pelagic fish for the fishmeal

and fish oil production, which are part of the

recipe for the production of salmon feed. In Q2, the

raw fish was purchased, while the production and

sale of the salmon feed took place in Q3 and

continued in Q4. For 2014, the EBITDA was DKK 181.6

million (DKK 125.8 million), and the margin was

18.70% (11.61%).

Sales of feed amounted to 23,133 tonnes (20,270

tonnes) in Q4 2014, of which the farming segment

internally used 19,218 tonnes (14,736 tonnes). For

2014, the feed sale was 85,724 tonnes (85,333

tonnes). The internal sale was 68,187 tonnes (63,820

tonnes).

In Q4 2014, Havsbrún received 21,918 tonnes (18,432

tonnes) of raw material for the production of

fishmeal and fish oil. In 2014, Havsbrún received

193,231 tonnes (160,581 tonnes) of raw material. In

general, the raw material intake depends on the

fishery in the North Atlantic and available species

of fish.

The production of fishmeal in Q4 2014 was 4,669

tonnes (4,324 tonnes). For 2014, Havsbrún produced

40,827 tonnes (34,031 tonnes) of fishmeal.

The production of fish oil in Q4 2014 was 1,789

tonnes (1,619 tonnes). For 2014, Havsbrún produced

6,460 tonnes (15,996 tonnes) of fish oil. The

production of fish oil varies, depending on the

species of fish sourced for production.

STATEMENT OF FINANCIAL POSITION

The Group's total assets as of end Q4 2014 amounted

to DKK 3,462.9 million, compared to DKK 3,112.2

million at the end of 2013.

The Group's intangible assets are unchanged,

compared to the beginning of the year, and amounted

to DKK 294.7 million. Intangible assets comprise

primarily the fair value of acquired farming

licences. No licences in the North region are

recorded with a value in the Bakkafrost accounts.

Property, plant and equipment amounted to DKK

1,041.2 million at the end of Q4 2014, compared to

DKK 916.7 million at the end of 2013. In Q4 2014,

Bakkafrost made investments in PP&E amounting to DKK

103.2 million, and for 2014, investments were made

for DKK 229.9 million, whereof prepayments are DKK

114.5 million.

Non-current financial assets amounted to DKK 125.4

million at the end of Q4 2014, compared to DKK 115.3

million at the end of 2013. The increase in the

financial assets relates mainly to the investment in

the new pelagic processing company Pelagos in

Fuglafjørður, but also to the ownership in Hanstholm

Fiskemelsfabrik, that was sold to FF Skagen.

Long-term receivables have decreased from DKK 14.5

million in Q3 2014 to DKK 1.5 million at the end of

The Group's carrying amount (fair value) of

biological assets amounted to DKK 1,014.0 million at

the end of Q4 2014, compared to DKK 965.9 million at

the end of 2013. Included in the carrying amount of

the biological assets is a fair value adjustment

amounting to DKK 284.9 million, compared to DKK

296.4 million at the end of 2013. The decrease is

due to lower salmon prices at the end of Q4 2014,

compared to end 2013, as the biomass at sea is

higher than at the beginning of the year.

The Group's total inventories amounted to DKK 267.0

million as of end Q4 2014, compared to DKK 235.5

million at year-end 2013. The inventory primarily

represents Havsbrún's inventory of fishmeal, fish

oil and fish feed in addition to feed at the feed

stations, finished products, packing materials and

other raw materials.

The Group's total receivables amounted to DKK 314.3

million as of end Q4 2014, compared to DKK 400.6

million at the end of 2013. The reason for the

decrease is mainly that Bakkafrost has entered into

a factoring agreement for a significant part of its

sale.

The Group's equity at the end of Q4 2014 is DKK

2,063.7 million, compared to DKK 1,665.3 million at

the end of 2013. The change in equity consists

primarily of the positive result for the period, a

negative fair value adjustment to a

currency/-interest rate swap related to the bond

financing and the dividend paid out in Q2 2014.

The Group's total non-current liabilities amounted

to DKK 1,036.3 million at the end of Q4 2014,

compared to DKK 1,071.0 million at the end of 2013.

Deferred taxes at the end of Q4 2014 amounted to DKK

414.0 million, compared to DKK 310.9 million at the

end of 2013.

Long-term debt was DKK 505.4 million at the end of

Q4 2014, compared to DKK 685.2 million at the end of

2013. Derivatives amounted to DKK 116.9 million at

the end of Q4 2014, compared to DKK 74.9 million at

the end of 2013.

Bakkafrost's interests bearing debt consists of two

bank loans and a bond loan. The bank loans are an

instalment loan of DKK 200 million, payable with DKK

25 million each quarter, and an overdraft facility,

payable in 2016 with the full amount of DKK 553

million. The bond loan of NOK 500 million has a five-

year maturity and is payable 14 February 2018. The

interest rate of the bonds is NIBOR 3m + 4.15%.

Following the issuance of the bonds, Bakkafrost has

entered into a currency/-interest rate swap, hedging

the exchange rate, and has switched the interest

rate from NIBOR 3m to CIBOR 3m. Bakkafrost has

entered the swap due to its exposure to DKK, as a

large part of the income and costs are in DKK and

EUR.

At the end of Q4 2014, the Group's total current

liabilities are DKK 362.9 million, compared to DKK

376.0 million at the end of 2013. Short-term

interest bearing debt amounts to DKK 100.0 million

and relates to a short-term part of long-term debt

as described above. Accounts payable amount to DKK

262.9 million, compared to DKK 276.0 million at the

beginning of the year. The decrease is primarily

because no provisions are for onerous contracts at

the end of 2014, even though its full effect is

counterbalanced by higher payable taxes.

Bakkafrost's equity ratio is 60%, compared to 54% at

the end of 2013.

CASH FLOW

The cash flow from operations in Q4 2014 was DKK

173.4 million (DKK 187.1 million). For 2014, the

cash flow from operations was DKK 869.9 million (DKK

517.5 million). The cash flow from operations has

been positively affected from reduction in working

capital as Bakkafrost has entered into a factoring

agreement for some of its sale.

The cash flow from investment activities in Q4 2014

amounted to DKK -79.4 million (DKK -96.7 million).

The amount relates mainly to investments in fixed

assets. For 2014, the cash flow from investments

amounted to DKK -232.5 million (DKK -204.4 million).

Cash flow from financing activities totalled DKK

-57.3 million in Q4 2014 (DKK -72.2 million). The

interest bearing debt decreased by DKK 66.7 million,

and financing of an associated company contributed

positively with DKK 17.3 million. For 2014, cash

flow from financing amounted to DKK -414.4 million

(DKK -156.1 million).

Net change in cash flow in Q4 2014 amounted to DKK

36.7 million (DKK 18.3 million) and for 2014 DKK

223.0 million (DKK 157.0 million).

At the end of 2014, Bakkafrost had unused credit

facilities of approximately DKK 958.1 million of

which DKK 15.0 million are restricted.

OUTLOOK

MARKET

The salmon market is expected to be tight in 2015.

Global supply increase of farmed salmon is expected

to be only around 4% in 2015 and 2-3% in 2016,

compared with the year before. The global supply

growth in 2014 was 9%, which seems to be the growth

rate needed to maintain the salmon market in

balance. The reason for the limited growth is that

many of the salmon producing farmers are close to

full capacity utilisation. In addition, biological

challenges are an important factor to reduce

production growth.

Both established and new markets show an increased

demand for farmed salmon. The outlook for 2015 is

favourable for the salmon farming industry as only a

limited supply growth is expected and a strong

demand. The Russian ban of Norwegian salmon

implemented in 2014 gave temporary challenges to

move volumes between different markets, but the

market adapted relatively well to the new market

situation.

The market place is one of Bakkafrost's most

significant risk areas. Bakkafrost has a

geographical and a market price approach. These

approaches reduce the exposure to the market risk.

To diversify the geographical market risk,

Bakkafrost sells its products to some of the largest

salmon markets in the world, US, the Far East,

Europe and Russia.

FARMING

The outlook for the farming segment is good. Biology

and veterinary situation is the most important risk

area for Bakkafrost. The company is focusing on this

risk with new investments and procedures to minimise

the risk. The biological situation is good, and the

price outlook in the spot market continues to be

positive.

Bakkafrost expects to harvest 49,000-51,000 tonnes

gutted weight in 2015. Faroe Farming, a company in

which Bakkafrost holds 49%, expects to harvest

around 4,500 tonnes in 2015.

The number of smolts released is one key element of

predicting the future production for the Group.

Bakkafrost's forecast for the smolt release in 2015

is 10.4 million pieces. The smolt release for 2015

shall be compared to the smolts released in 2013,

which was 9.5 million. The same sites are available

for smolt release in 2015 as in 2013.

The estimates for harvesting volumes and smolt

releases is as always dependent on the biological

situation. The sea temperature was higher in 2014

than previous years. Bakkafrost will start using

cleaner fish (lumpfish) in the first half of 2015 on

two farming locations. This is a project together

with Fiskaaling, which is an aquaculture research

station in the Faroe Islands. Bakkafrost will also

start using fresh water treatment against sea lice,

when the new wellboat is delivered in June 2015.

In November 2013, the presence of Neoparamoeba

perurans, the agent known to be able to cause amoeba

gill disease (AGD) was detected in one of our farms.

Since then we have detected this agent in our farms

especially during the autumn, but so far, the gill

scores have been low, meaning no disease. Bakkafrost

has the necessary equipment and staff knowledge to

carry out treatments if necessary and with the new

modern wellboat capable to carry out fresh water

treatment of the fish, Bakkafrost is well prepared

to handle the risk.

Bakkafrost is now self-supplied with smolts with the

new hatchery starting production in 2014. Another

smolt capacity increase started early 2015, when the

expansion of one existing hatchery started. This

expansion will fourfold the capacity of that

hatchery and will be finished within one year.

Bakkafrost plans to increase the smolt capacity,

making Bakkafrost self-supplied with smolt at a size

of 200-300g apiece before end 2017. The benefits are

shorter production time at sea as well as reduced

biological risk.

VAP (VALUE ADDED PRODUCTS)

The outlook for the sale of value added products is

good. Bakkafrost has already signed contracts

covering around 65% of the VAP capacity for 2015.

This corresponds to around 27% of the expected

harvested volumes for 2015. The last 35% of the VAP

capacity is expected to be committed during the

year. The VAP contracts are at fixed prices, based

on the salmon forward prices at the time they are

agreed and the expectations for the salmon spot

price for the contract period.

The contracts last for 6 to 12 months. The long-term

strategy is to sell around 40-50% of the harvested

volumes of salmon as VAP products on fixed price

contracts. Selling the products at fixed prices

reduces the financial risk with fluctuating salmon

prices. The market price for contracted VAP products

follows a more stable pattern with trends instead of

short-term fluctuations as in the spot market.

FOF (FISH OIL, -MEAL AND FEED)

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 has

increased.

In 2014, Havsbrún received 193 thousand tonnes of

raw material for fishmeal and fish oil production.

Blue whiting is for the time being the most

important single species for raw material intake.

Bakkafrost is one of the founders of Pelagos, a new

pelagic plant built next to Havsbrún. The operation

is to process pelagic fish for human consumption.

This process contributes to increase the

sustainability of our total operation, as Havsbrún

will use an increased share of offcuts from pelagic

fish to produce salmon feed. The start of Pelagos in

August 2014 was successful. Pelagos received 40,000

tonnes of pelagic fish, whereof 8% were offcuts sold

to Havsbrún the first four months. The aim is to

increase the filleting operation and therefore the

share of offcuts will also increase.

With increased quotas, Bakkafrost is optimistic,

that the raw materials needed for our production of

high quality salmon feed will be available.

However, depending on supply, demand and the price

level, the sourcing of raw material for the

production of fishmeal and fish oil may be

uncertain. An alternative to Havsbrún's production

of fishmeal and fish oil is purchasing these raw

materials from other producers. Fishmeal and fish

oil is the most important raw material in the

production of a high quality fish feed for the

Bakkafrost salmon.

The major market for Havsbrún´s fish feed is the

local Faroese market including Bakkafrost's internal

use of fish feed.

It is expected that the total consumption of fish

feed in the Faroe Islands will be approximately

93,000-97,000 tons in 2015. Depending on the

purchase from external customers in the Faroe

Islands and abroad, the sale of fish feed will be

approximately 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 was

announced to be DKK 1,370 million including

maintenance CAPEX. The future investment over the

next three years will be DKK 1,120 million. Included

in the investment plan, is a new Harvest/-VAP

factory estimated to DKK 450 million, resulting in

operational savings of DKK 70-90 million per year

from 2017. The plant will be up running in 2016.

A new 3,000 m3 wellboat is under construction and

was planned for delivery 25 April 2015. The delivery

is postponed six weeks due to the installation of

the fresh water treatment system. The delivery will

be on 12 June 2015. The investment in the wellboat

amounts to DKK 230 million.

Free cash flow from operations, existing financing

facilities and partly new financing if advantageous

will finance the investments. In addition,

Bakkafrost has the possibility to postpone

investments in case of adverse events. The dividend

policy will be unchanged.

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 together 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 23 50 01

(mobile)

Gunnar Nielsen, CFO of P/F Bakkafrost: +298 23 50 60

(mobile)

This information is subject of the disclosure

requirements acc. to §5-12 vphl (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 fish meal, 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

headquarters are located in Glyvrar, and the company

has a total of 700 employees.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN

WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN

AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. This

press release does not constitute or form part of an

offer or solicitation to purchase or subscribe for

securities.

The securities referred to herein may not be offered

or sold in the United States absent registration or

an exemption from registration as provided in the

U.S. Securities Act of 1933, as amended. Copies of

this announcement are not being made and may not be

distributed or sent into the United States,

Australia, Canada or Japan.