Bakkafrost P/f

Interim / Quarterly Report • May 6, 2019

INTERIM REPORT

Q1 2019

www.bakkafrost.com

0

Q1 18

Q2 18

17.72 29.17 19.73 16.98 16.86 0 10 20 30 40 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 OPERATIONAL EBIT VAP AND FARMING DKK/KG

Q3 18 Q4 18 Q1 19

Table of Contents

ig h l ig h H ts	2
st f he Su t 1 Q te 2 0 1 9 mm ar y o ua r r	3

by he d he S ta te t t Ma t a t me n na g em en n
d o f ire he im Bo D to t In te Re t 1 2 ar c rs on r p or

ina ia l iew F Re 4 nc v	l i da d Co te Inc S ta te t 1 3 ns o om e me n
S Inc ta te t 4 om e me n	Co l i da d S f te ta te t o ns o me n
f ina ia l i ion S ta te t o F Po t 4 me n nc s	he ive Co Inc 1 3 mp re ns om e
h low Ca F 5 s	l i da d f ina ia l i ion Co te S ta te t o F Po t 1 4 ns o me n nc s
ing Se 6 Fa t rm g me n	Co l i da d Ca h low S te F ta te t 1 5 ns o s me n
V A P Se t 7 g me n	l i da d f Co te S ta te t o ns o me n
F O F Se t 8 g me n	ha in i C Eq ty 1 6 ng es u

he 9 No te to t Ac t 1 7 s co un
1
1 Co ta ts 2 7 n c

Highlights

	Q 1	Q 1		Q 1	Q 1
00 0 DK K 1 ,	20 19	20 18	00 0 DK K 1 ,	20 19	20 18
INC OM E S TA TE ME NT			FIN AN CIA L P OS ITI ON AN D C AS H F LO W
Gro - O rat ing nue up pe re ve	96 3, 70 9	85 1, 15 6	To tal As set s***	6, 16 6, 42 9	5, 80 2, 52 3
Gro - O ion al IT* rat EB up pe	26 70 7, 4	26 8, 22 2	uit *** Eq y	28 9, 72 4, 7	07 02 9 4, 7,
Gro - E BIT up	26 0, 52 8	35 1, 44 5	uit ati o* Eq y r	70 %	70 %
rof it f the rio d Gro - P up or pe	21 2, 83 6	27 2, 30 1	t in -be ari de bt * Ne ter est ng	52 1, 98 3	49 5, 47 9
			Cas h f low fro rat ion m o pe s	76 50 3 ,	36 8, 17 5
Op tio l E * ( mi and P) ( K) BIT Far VA DK era na ng	23 1, 06 7	21 6, 82 7	Cas h f low fro m f ina nci ng	54 14 6 ,	10 2, 10 6
tio l E */ kg ( mi and P) ( K) Op BIT Far VA DK era na ng	16 .86	17 .72
tio l E */ kg ( mi and P) ( K) Op BIT Far VA NO era na ng	21 .99	22 .92	PR OF ITA BIL ITY
			Ba sic rni har e ( DK K) ea ngs pe r s	4.3 7	5.6 0
mi - O ati Far ng per ng rev en ue	40 2 75 5,	66 6, 65 5	Dil d e ing sha ( K) ute DK arn s p er re	4.3 7	5.6 0
mi ati al IT* Far - O EB ng per on	22 9, 74 3	22 8, 44 3	CE RO	4.8 %	5.7 %
mi ati al in Far - O EB IT m ng per on arg	30 .4%	34 .3%
Far mi - O ati al EB IT/ kg ( DK K) ng on per	16 .76	18 .67	VO LU ME S
mi - O ati al IT/ kg ( NO K) Far EB ng per on	21 .86	24 .15	d v olu s ( ) Ha ste tgw rve me	13 70 7 ,	12 23 7 ,
			rod d v olu s ( ) VA P p tgw uce me	4, 68 9	2, 11 5
tin VA P - Op era g r ev en ue	26 0, 57 4	92 99 4 ,	ld f eed So to nn es	16 26 4 ,	13 92 3 ,
VA P - Op tio l E BIT * era na	1, 32 4	-11 61 6 ,	Int al f eed les to ern sa nn es	13 96 0 ,	13 15 2 ,
Op tio l E in VA P - BIT era na m arg	% 0.5	.5% -12	Sm olt lea sed th d ( ) re ou san pcs	1, 72 0	3, 13 4
tio l E / kg ( K) VA P - Op BIT DK era na	0.2 8	-5. 49
tio l E / kg ( K) VA P - Op BIT NO era na	0.3 7	-7. 10
			lign ed for fa ir v alu dju of bi * A stm ent e a om ass , on ero us con	isio in e f tra cts pr ov ns, com rom	iat and as soc es
FO Op tin F - era g r ev en ue	28 3, 41 1	30 0, 35 9	ref tax to No te 10 rev en ue er –
FO F - EB ITD A	65 25 2 ,	86 43 3 ,	** R etu ita l em loy ed bas ed tio l E BIT ref to No te 10 rn on ave rag e c ap p on op era na er – ,
in FO F - EB ITD A m arg	23 .0%	28 .8%	*** Co ari fig s f d 2 01 8 mp ng ure rom en
K/ NO K ( e) DK ave rag	76 .66	.31 77

Summary of the 1st Quarter 2019

(Figures in parenthesis refer to the same period last year)

The Bakkafrost Group delivered a total operating EBIT of DKK 267.7 million in Q1 2019. Harvested volumes were 13.7 thousand tonnes gutted weight. The combined farming and VAP segments made an operational EBIT of DKK 231.1 million. The farming segment made an operational EBIT of DKK 229.7 million. Achieved prices in this quarter decreased and thus had a negative effect on the operational EBIT. The VAP segment made an operational EBIT of DKK 1.3 million. The EBITDA for the FOF segment was DKK 65.3 million.

The Group made a profit for Q1 2019 of DKK 212.8 million (DKK 272.3 million).

The total volumes harvested in Q1 2019 were 13,707 tonnes gutted weight (12,237 tgw).

1.7 million (3.1 million) smolts were transferred during Q1 2019.

The combined farming and VAP segments made an operational EBIT of DKK 231.1 million (DKK 216.8 million) in Q1 2019. The operational EBIT per kg in Q1 2019 was DKK 16.86 (DKK 17.72), which corresponds to NOK 21.99 (NOK 22.92) for the combined farming and VAP segments.

The farming segment made an operational EBIT of DKK 229.7 million (DKK 228.4 million) in Q1 2019. The harvested volumes were higher, but the achieved prices were lower in Q1 2019, compared to Q1 2018.

The Faroese Parliament changed the revenue tax for farming operations in the Faroe Islands from 4.5% to 5.0% in December 2018. The change was effective from 1 January 2019.

The VAP segment made an operational EBIT of DKK 1.3 million (DKK -11.6 million) for Q1 2019.

The FOF segment (fishmeal, oil and feed) made an EBITDA of DKK 65.3 million (DKK 86.4 million) for Q1 2019, and the EBITDA margin was 23.0% (28.8%). During Q1 2019, Havsbrún sourced 115,530 tonnes (130,104 tonnes) of raw material.

Bakkafrost aims at giving the shareholders a competitive return on their investment, both through payments of dividends and by value growth of the equity through positive operations.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as dividend. The financial position of Bakkafrost is strong with a solid balance sheet, a competitive operation and available credit facilities. The Annual General Meeting, convened on 5 April 2019, decided to pay out a dividend of DKK 8.25, corresponding to NOK 10.65 per share. The total dividend of DKK 403.1 million (NOK 520.3 million) was paid out on 26 April 2019.

The net interest-bearing debt amounted to DKK 522.0 million at the end of Q1 2019 (DKK 495.5 million at year-end 2018). Undrawn credit facilities amounted to DKK 971.1 million at the end of Q1 2019.

The equity ratio was 70% at 31 March 2019, compared to 70% at the end of 2018.

Financial Review

Income Statement

(Figures in parenthesis refer to the same period last year)

The operating revenue amounted to DKK 963.7 million (DKK 851.2 million) in Q1 2019. The farming segment's harvest volume was higher, and the achieved prices were lower in Q1 2019, compared to the same quarter last year. The VAP segment had higher revenues because of higher volumes and higher prices in Q1 2019, compared to Q1 2018. The FOF segment had lower external revenue in Q1 2019, mainly due to lower external sales of fishmeal and fish oil, compared to Q1 2018.

Operational EBIT was DKK 267.7 million (DKK 268.2 million) in Q1 2019. The farming and VAP segments had higher operational EBIT in Q1 2019, compared to Q1 2018, while the FOF segment had lower operational EBIT in Q1 2019, compared to Q1 2018.

The fair value adjustment of the Group's biological assets amounted to DKK 17.9 million (DKK 107.1 million) in Q1 2019. The positive adjustment is due to higher forward market prices for salmon at the end of the quarter, compared to the beginning of the quarter.

Change in provisions for onerous contracts amounted to DKK 0 million (DKK 0 million) in Q1 2019.

In Q1 2019, the profit from associated companies amounted to DKK 6.9 million (DKK 2.4 million).

The revenue tax amounted to DKK -32.0 million (DKK -26.3 million) in Q1 2019. The revenue tax increased

because of higher harvested volumes, higher market prices and an increase in the revenue tax rate from 4.5% to 5.0% from 1st January 2019, compared to the same quarter last year.

Net interests in Q1 2019 were DKK -1.2 million (DKK -18.7 million).

Net taxes amounted to DKK -46.5 million (DKK -60.4 million) in Q1 2019.

The result for Q1 2019 was DKK 212.8 million (DKK 272.3 million).

Statement of Financial Position

(Figures in parenthesis refer to end last year)

The Group's total assets amounted to DKK 6,166.4 million (DKK 5,802.5 million) at the end of Q1 2019.

Intangible assets amounted to 391.0 (DKK 389.7 million) at the end of Q1 2019.

Property, plant and equipment amounted to DKK 3,004.6 million (DKK 2,884.3 million) at the end of Q1 2019. In Q1 2019, Bakkafrost made investments in PP&E amounting to DKK 110.0 million and new lease commitments according to IFRS 16 amounting to DKK 64.0 million.

Non-current financial assets amounted to DKK 115.7 million (DKK 112.8 million) at the end of Q1 2019.

The carrying amount (fair value) of biological assets amounted to DKK 1,290.9 million (DKK 1,358.5 million) at the end of Q1 2019. Biological assets have mainly decreased due to lower volumes, compared to year end 2018. Included in the carrying amount of the biological assets is a fair value adjustment amounting to DKK 400.6 million (DKK 382.8 million) at the end Q1 of 2019.

Inventories amounted to DKK 562.8 million (DKK 438.8 million) at the end of Q1 2019.

Total receivables, including long-term receivables, amounted to DKK 459.7 million (DKK 301.5 million) at the end of Q1 2019.

The Group's equity amounted to DKK 4,289.7 million (DKK 4,077.0 million) at the end of Q1 2019. The change in equity consists primarily of the positive result for Q1 2019.

Total non-current liabilities amounted to DKK 1,505.1 million (DKK 1,346.5 million) at the end of Q1 2019.

Deferred taxes and other taxes amounted to DKK 581,4 million (DKK 534.4 million) at the end of Q1 2019.

Long-term debt was DKK 862.9 million (DKK 812.1 million) at the end of Q1 2019.

At the end of Q1 2019, the Group's total current liabilities were DKK 371.6 million (DKK 379.0 million). The current liabilities consist of accounts payable and tax payable.

Derivatives amounted to DKK 0.6 million (DKK 0.3 million) at the end of Q1 2019.

Short-term interest-bearing debt amounted to DKK 0 million (DKK 0 million) at the end of Q1 2019.

The equity ratio was 70% at the end of Q1 2019, compared with 70% at the end of 2018.

Cash Flow

(Figures in parenthesis refer to the same period last year)

The cash flow from operations was DKK 76.5 million (DKK 368.2 million) in Q1 2019. The changes in working capital had a negative effect on the cash flow from operations.

The cash flow from investment activities amounted to DKK -106.0 million (DKK -111.5 million) in Q1 2019. The amount relates to investments in property, plant and equipment.

The cash flow from financing activities totalled DKK 54.1 million (DKK 102.1 million) in Q1 2019.

In Q1 2019, net change in cash flow amounted to DKK 24.7 million (DKK 358.8 million).

At the end of Q1 2019, Bakkafrost had unused credit facilities of DKK 971.1 million (DKK 997.7 million at the end of 2018).

Farming Segment

The farming segment produces high quality Atlantic salmon from juveniles to harvest size salmon. The salmon is sold to fresh fish markets globally and to the internal VAP production. The farming sites are in the Faroe Islands.

Volumes

The total volumes harvested in Q1 2019 were 13,707 tonnes gutted weight (12,237 tgw) – an increase in volume of 12%. 6,743 tgw came from the North region and 6,964 tgw from the West region.

1.7 million (3.1 million) smolts were transferred in Q1 2019. This is in line with the smolt transfer plan.

	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	ha C ng e
ina ia F l nc
To ta l re ve nu e	5 5, 4 0 2 7	6 6 6, 6 5 5	1 3 %
E B I T	2 1 8, 1 5 9	3 0 9, 2 4 7	-2 9 %
ion l Op t E B I T era a	2 2 9, 7 4 3	2 2 8, 4 4 3	1 %
ing ion Fa Op t l E B I T / kg ( D K K ) rm era a -	1 6. 7 6	1 8. 6 7	-1 0 %
lum Vo es
d v lum ( ) Ha te tg rve s o es w	1 3, 7 0 7	1 2, 2 3 7	1 2 %
ing h Fa No t rm r -	6, 7 4 3	2, 7 3 6	1 4 6 %
Fa ing We t rm s -	6, 9 6 4	9, 5 0 1	-2 % 7
l lea d ( ho d ) Sm ts t o re se us an	1, 7 2 0	3, 1 3 4	-4 5 %
ing h Fa No t rm r -	1, 7 2 0	2 6 2	5 5 6 %
ing Fa We t rm s -	0	2, 8 7 2	-1 0 0 %

Financial Performance

In Q1 2019, the operating revenue for Bakkafrost's farming segment was DKK 755.4 million (DKK 666.7 million). The total revenue for the farming segment increased in Q1 2019, compared with Q1 2018, mainly because of higher volume.

In Q1 2019, the farming segment's EBIT amounted to DKK 218.2 million (DKK 309.2 million).

Operational EBIT amounted to DKK 229.7 million (DKK 228.4 million) in Q1 2019, which corresponds to an operational EBIT margin of 30% (34%).

Operational EBIT/kg for the farming segment was DKK 16.76 (NOK 21.86) in Q1 2019, compared with DKK 18.67 (NOK 24.15) in Q1 2018.

VAP Segment

The VAP (value added products) segment produces skinless and boneless portions of salmon. The main market for the VAP products is Europe with increasing sales in other markets. The VAP products are sold on long-term fixed price contracts.

Volumes

34% (17%) of the total harvested volumes in Q1 2019 went to the production of VAP products.

The VAP production in Q1 2019 was 4,689 tonnes gutted weight (2,115 tgw) an increase on 122% compared to Q1 2018. The harvest volumes were higher, and the segment had higher contract coverage in Q1 2019, compared to Q1 2018.

	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	C ha ng e
ina ia l F nc
To ta l re ve nu e	2 6 0, 5 7 4	9 2, 9 9 4	1 8 0 %
E B I T	3 2 1, 4	6 6 -1 1, 1	% 1 1 1
ion l Op t E B I T era a	1, 3 2 4	-1 1, 6 1 6	1 1 1 %
ion l / kg ( ) V A P - Op t E B I T D K K era a	0. 2 8	-5. 4 9	1 0 5 %
lum Vo es
du d v lum ( ) V A P p tg ro ce o es w	4, 6 8 9	2, 1 1 5	1 2 2 %
d v lum d in du ion Ha te V A P p t rve s o es us e ro c	3 4 %	1 7 %	9 8 %
Ha te d v lum l d fre h / fro rve s o es so s ze n	6 6 %	8 3 %	-2 0 %

Financial Performance

The operating revenue for the VAP segment amounted to DKK 260.6 million (DKK 93.0 million) in Q1 2019. The increase in revenue is due to higher volumes in Q1 2019, compared with Q1 2018.

The VAP segment had an EBIT amounting to DKK 1.3 million (DKK -11.6 million) in Q1 2019. Changes in onerous contracts were DKK 0 million (DKK 0 million). Operational EBIT amounted to DKK 1.3 million (DKK -11.6 million) in Q1 2019, corresponding to an operational EBIT of DKK 0.28 (NOK 0.37) per kg gutted weight in Q1 2019, compared with DKK -5.49 (NOK -7.10) per kg gutted weight in Q1 2018.

FOF Segment

The FOF (fishmeal, oil and feed) segment produces fishmeal, fish oil and fish feed. Most of the production is used for fish feed, used internally in the farming segment. The quality of the fish feed is important to the quality of the salmon from Bakkafrost. Fishmeal, fish oil and fish feed are also sold externally.

Volumes

Havsbrún received 115,530 tonnes (130,104 tonnes) of raw material to produce fishmeal and fish oil in Q1 2019. The raw material intake depends on the fishery in the North Atlantic and available species of fish.

The production of fishmeal in Q1 2019 was 24,738 tonnes (27,114 tonnes).

The production of fish oil in Q1 2019 was 4,094 tonnes (3,864 tonnes). The production of fish oil varies, depending on the species of fish sourced for production and the timing of catch.

Sales of feed amounted to 16,264 tonnes (13,923 tonnes) in Q1 2019, of which the farming segment internally used 13,960 tonnes (13,152 tonnes) or 85.8% (94.5%).

Financial Performance

The operating revenue for the FOF segment amounted to DKK 283.4 million (DKK 300.4 million) in Q1 2019, of which DKK 139.2 million (DKK 126.3 million) represented sales to Bakkafrost's farming segment, corresponding to 49.1% (42.0%).

Q 1
2 0 1 9	2 0 1 8	C ha ng e
2 8 3, 4 1 1	3 0 0, 3 5 9	-6 %
6 2, 2 5 1	8 6 1, 4 5	-2 3 %
6 5, 2 5 2	8 6, 4 3 3	-2 5 %
2 3. 0 %	2 8. 8 %	-2 0 %
1 6, 2 6 4	1 3, 9 2 3	1 7 %
1 3, 9 6 0	1 3, 1 5 2	6 %
2, 3 0 4	7 7 1	1 9 9 %
9, 9 8 7	2, 2 6 6 1	9 % -1
1	2, 0 0 8	-1 0 0 %
1 1 5, 5 3 0	1 3 0, 1 0 4	-1 1 %
		Q 1

Total revenue for the FOF segment in Q1 2019 decreased 6%, compared to the same quarter last year. The internal revenue increased, but the external sales have decreased. The decrease in external revenue is due to lower volumes of fishmeal and fish oil sold in Q1 2019, compared to Q1 2018.

EBITDA was DKK 65.3 million (DKK 86.4 million) in Q1 2019, and the EBITDA margin was 23.0% (28.8%). Havsbrún sources raw pelagic fish for the fishmeal and fish oil production, which are part of the recipe to produce salmon feed.

Outlook

Market

The global supply of Atlantic salmon in Q1 2019 increased around 5%, compared to Q1 2018, according to the latest estimate from Kontali Analyse.

The global harvest of Atlantic salmon in Q2 2019 is expected to increase around 5%, compared to Q2 2018. The estimated global harvest of Atlantic salmon for 2019 is an increase of around 5-7%, compared to 2018.

Bakkafrost operates in the main salmon markets, Europe, USA, the Far East and Russia. Variation in sales distribution between the different markets is driven by the change in demand from quarter to quarter in the different regions. Bakkafrost, however, aims to have a balanced market diversification to reduce market risk.

Farming

The outlook for the farming segment is good. The estimates for harvest volumes and smolt releases are dependent on the biological development.

Bakkafrost focuses on reducing biological risk continuously and has made several new investments and procedures to diminish this risk. Bakkafrost focuses on using non-medical methods in treatments against sea lice and has invested in new technology to follow this strategy.

Bakkafrost's guidance for harvest in 2019 is 54,500 tonnes gutted weight.

Bakkafrost expects to release 13.5 million smolts in 2019, compared with 12.5 million smolts in 2018 and 9.9 million smolts in 2017. The number of smolts released is a key element of predicting Bakkafrost's future production.

VAP (Value added products)

Bakkafrost has signed contracts covering around 33% of the expected harvested volumes for 2019. Bakkafrost's long-term strategy is to sell around 40-50% of the harvested volumes of salmon as VAP products at fixed price contracts.

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.

FOF (Fishmeal, oil and feed)

The outlook for the production of fishmeal and fish oil is dependent on the availability of raw material.

The ICES 2019 recommendation for blue whiting is 1,143 thousand tonnes, which corresponds to a de– crease of 18%, compared to ICES's recommendation for 2018.

Bakkafrost expects a decrease in production volumes of fishmeal and fish oil in 2019, compared to 2018.

The major market for Havsbrún´s fish feed is the local Faroese market including Bakkafrost's internal use of fish feed.

Havsbrún's sales of fish feed in 2019 are expected to be at 85,000 tonnes, depending on external sales.

Investments

Bakkafrost's investment program for the period from 2018 to 2022 will amount to DKK 3 billion, including maintenance capex, and will reinforce Bakkafrost's integrated business model. The aim of the investment program is to minimize the biological risk, increase efficiency and create sustainable organic growth.

Bakkafrost's strategy and investment program will be presented at Bakkafrost's Capital Markets Day on 12 June 2019 in the Faroe Islands.

Financial

Favourable market balances in the world market for salmon products and cost-conscious production will likely maintain the financial flexibility going forward.

A high equity ratio together with Bakkafrost's bank financing, 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 to fulfil its dividend policy in the future, which is unchanged although a new investment program is announced.

Risks

Biological risk has been and will be a substantial risk for Bakkafrost. The Annual Report 2018 gives more explanation on the biological risk and Bakkafrost's risk management in this regard.

Reference is made to the Outlook section of this report for other comments to Bakkafrost's risk exposure and to Note 3.

Bakkafrost is, as explained in the Annual Report 2018, exposed to the salmon price. Global supply of salmon is expected to increase in 2019 and will influence the salmon price.

The Annual Report 2018 is available on request from Bakkafrost and on Bakkafrost's website, www.bakkafrost.com.

Events after the Date of the Statement of Financial Position

From the date of the statement of financial position until today, no events have occurred which materially influence the information provided by this report.

Statement by the Management and the Board of Directors on the Interim Report

The Management and the Board of Directors have today considered and approved the interim report of P/F Bakkafrost for the period 1 January 2019 to 31 March 2019.

The interim report, which has not been audited or reviewed by the company's independent auditors, has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and Faroese disclosure requirements for listed companies.

Glyvrar, May 6th, 2019

Management:

Regin Jacobsen CEO

The Board of Directors of P/F Bakkafrost:

Rúni M. Hansen Johannes Jensen Teitur Samuelsen

Chairman of the Board Deputy Chairman of the Board Board Member

2019.

In our opinion, the accounting policies used are appropriate, and the interim report gives a true and fair

view of the Group's financial positions at 31 March

2019, as well as the results of the Group activities and

cash flows for the period 1 January 2019 to 31 March

In our opinion, the management's review provides a

true and fair presentation of the development in the

Group operations and financial circumstances of the

Øystein Sandvik Annika Frederiksberg Einar Wathne Board Member Board Member Board Member

results for the period and of the overall financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group.

Over and above the disclosures in the interim report, no changes in the Group's most significant risks and uncertainties have occurred relative to the disclosures in the annual report for 2018.

Consolidated Income Statement

For the period ended 31 March 2019

	Q 1	Q 1
DK K 1 00 0 ,	20 19	20 18
Op tin era g r ev en ue	96 3, 70 9	85 6 1, 15
rch of od Pu ase go s	-36 1, 54 0	-28 9, 14 5
Ch e i n i d b iolo ica l as s (a ) ent set t c ost ang nv ory an g	34 01 3 ,	31 39 3 ,
Sal d p l ex ary an ers on ne pen ses	-11 4, 55 2	-91 18 3 ,
Oth tin er op era g e xp en ses	-20 0, 15 3	-18 8, 22 4
De cia tio pre n	-53 77 3 ,	-45 77 5 ,
tio Op l EB IT * era na	26 7, 70 4	26 8, 22 2
Fai alu dju f b iolo ica l as stm ent set r v e a s o g s	17 87 1 ,	10 7, 13 1
On tra cts ero us con	0	0
Inc e f iat om rom as soc es	6, 94 7	2, 41 9
Rev tax en ue	-31 99 4 ,	-26 32 7 ,
nin bef in d t ( IT) Ear ter est EB gs ore an ax es	26 0, 52 8	35 1, 44 5
Ne t in ter est re ve nue	11 1	1, 00 1
t in Ne ter est ex pe nse s	-1, 86 5	-4, 92 5
eff Ne t c ect urr en cy s	1, 42 5	-13 15 9 ,
Oth fin ial er anc ex pe nse s	-86 4	-1, 62 7
nin bef ta s ( T) Ear EB gs ore xe	25 9, 33 5	33 2, 73 5
Tax es	-46 49 9 ,	-60 43 4 ,
fit los s fo r th eri od Pro or e p	21 2, 83 6	27 2, 30 1
Pro fit los s fo r th at tri bu tab le t or e y ear o
llin int No tro sts n-c on g ere	0	0
f P / ak kaf Ow F B t ne rs o ros	21 2, 83 6	27 2, 30 1
Ear nin sh ( DK K) gs per are	4.3 7	5.6 0
Dil ute d e ing sha ( DK K) arn s p er re	4.3 7	5.6 0

* Operational EBIT is EBIT before fair value of biomass, onerous contracts, income from associates and revenue tax.

Consolidated Statement of Comprehensive Income

For the period ended 31 March 2019

	Q 1	Q 1
DK K 1 00 0 ,	20 19	20 18
fit for th eri od Pro e p	21 2, 83 6	27 2, 30 1
Ch fin ial de riv ati ang es on anc ve s	-27 4	12 7, 29 1
f in eff He e t ect reo com ax	33	-22 91 2 ,
har e-b d p Res e t nt erv o s ase ay me	83 9	57 0
Cu nsl ati dif fer tra rre ncy on enc es	1	0
Ad jus tm ent of tre sha asu ry res	-2, 99 3	1, 04 3
ive inc ssif ied ofi Net ot her reh e to be cla to t o co mp ens om re pr r
s in iod los bse nt su que per s	-2, 39 4	10 99 2 5,
ive inc ifie Net ot her reh ot t o b ecl d t co mp ens om e n e r ass o
fit s in iod los bse nt pro or su que per s	0	0
Oth he nsi in er com pre ve com e	-2, 39 4	10 5, 99 2
al o the reh ive inc e fo r th eri od Tot r co mp ens om e p	21 0, 44 2	37 8, 29 3
reh siv e in e f the rio d a ibu tab le t Co ttr mp en com or pe o
llin int No tro sts n- con g ere	0	0
Ow f P / F B akk afr ost ner s o	21 0, 44 2	37 8, 29 3

Consolidated Statement of Financial Position As at 31 March 2019

	31 M h arc	31 De c
DK K 1 00 0 ,	20 19	20 18
AS SET S
No t a ts n-c urr en sse
ible Int set ang as s	39 1, 04 2	38 9, 74 5
lan nd uip Pro rty t a nt pe , p eq me	3, 00 4, 58 7	2, 88 4, 32 5
Fin ial ets anc ass	11 5, 72 5	11 2, 76 6
eiv Lon ter ab les g- m rec	7, 68 8	9, 20 0
To tal t a ts no n-c urr en sse	3, 51 9, 04 2	3, 39 6, 03 6
Cu nt ets rre ass
Bio log ica l as s ( bio ss) set ma	1, 29 0, 94 4	1, 35 8, 46 2
ent Inv ory	56 2, 81 7	43 8, 84 7
tal in To nto ve ry	1, 85 3, 76 1	1, 79 7, 30 9
Ac nts cei ble cou re va	42 9, 60 8	26 9, 34 8
Oth eiv ab les er rec	22 44 4 ,	22 93 6 ,
cei To tal ble re va s	45 2, 05 2	29 2, 28 4
uiv Cas h a nd sh ale nts ca eq	34 1, 57 4	31 6, 89 4
To tal nt ets cu rre ass	2, 64 7, 38 7	2, 40 6, 48 7
TO SSE TS TA L A	6, 16 6, 42 9	80 2, 52 3 5,

DK K 1 00 0 ,	31 M h arc 20 19	31 De c 20 18
EQ UIT Y A ND LIA BIL ITI ES
uit Eq y
Sha ita l re cap	48 85 8 ,	48 85 8 ,
Oth uit er eq y	4, 24 0, 86 9	4, 02 8, 17 1
To tal uit eq y	4, 28 9, 72 7	4, 07 7, 02 9
t li ab ilit ies No n-c urr en
fer red d o the De r ta an xes	58 1, 37 1	53 4, 43 0
int bea rin de bt Lon ter st- g- m ere g	86 2, 94 4	81 2, 05 3
Oth de bt er	60 81 6 ,	0
tal t li ab ilit ies To no n-c urr en	1, 50 5, 13 1	1, 34 6, 48 3
Cu nt liab ilit ies rre
Fin ial de riv ati anc ve s	61 3	32 0
ble d o the r d ebt Ac nts cou pa ya an	37 0, 95 8	37 8, 69 1
liab ilit ies To tal nt cu rre	37 1, 57 1	37 9, 01 1
lia bil itie To tal s	1, 87 6, 70 2	1, 72 5, 49 4
TO Q ES TA L E UIT Y A ND LIA BIL ITI	6, 16 6, 42 9	5, 80 2, 52 3

Consolidated Cash Flow Statement

For the period ended 31 March 2019

	Q 1	Q 1
DK K 1 00 0 ,	20 19	20 18
nin bef in d t ( IT) Ear ter est EB gs ore an ax es	26 0, 52 8	35 1, 44 5
Ad jus tm ent s fo rite -do nd de cia tio s a r w wn pre n	53 77 3 ,	45 77 5 ,
Ad jus s fo alu dju of bi tm ent stm ent r v e a om ass	87 -17 1 ,	-10 13 7, 1
Ad jus s fo r in e f iat tm ent com rom as soc es	-6, 94 7	-2, 41 9
Ad jus s fo eff tm ent ect r c urr en cy s	4, 17 6	-9, 55 5
Ch in inv ent an ge ory	-38 58 1 ,	-33 67 7 ,
Ch in eiv ab les an ge rec	-16 7, 45 6	91 21 0 ,
Ch e i de bts ent ang n c urr	-11 11 9 ,	32 52 7 ,
h f fro ion Cas low rat m o pe s	76 50 3 ,	36 8, 17 5
h f low fro inv Cas est nts m me
fo has f fi xed Pay nts set me r p urc e o as s	-10 9, 95 7	-11 1, 47 1
Ne t in stm ent in fin ial ets ve anc ass	3, 98 8	0
Cas h f low fro inv est nts m me	-10 5, 96 9	-11 1, 47 1
h f fro m f ina nci Cas low ng
Ch of int st- bea rin de bt (s ho rt a nd lon ) an ge ere g g	59 51 5	10 6, 61 4
Fin ial inc anc om e	, 11 1	00 1, 1
Fin ial anc ex pen ses	-2, 72 9	-6, 55 2
eed s f le o f o sh Ne t p roc rom sa wn are s	-2, 75 1	1, 04 3
Cas h f low fro m f ina nci ng	6 54 14 ,	10 2, 10 6
in uiv in rio Ne t c ha sh d c ash ale nts d nge ca an eq pe	24 68 0 ,	35 8, 81 0
h a nd h e iva len ing ba lan Cas ts cas qu – o pen ce	31 6, 89 4	30 9, 55 1
Cas h a nd sh uiv ale nts los ing ba lan tot al ca eq – c ce	34 1, 57 4	66 8, 36 1

Consolidated Statement of Changes in Equity

As at 31 March 2019

		Share		Share -	Curre ncy			Biom ir ass Fa
	Share	Prem ium	Treas ury	based	trans lation		Propo sed	Value adju st-	Retai ned	Total
DKK 1 ,000	Capit al	Reser ve	Share s	Paym ent	differ ences	Deriv ative s	Divid end	ment s	Earni ngs	Equit y
Equit y 01 .01.2 019	48,8 58	306, 537	-15,5 25	6,15 3	6,17 6	-264	403, 079	382, 770	2,939 ,245	4,07 7,029
Cons olida ted p rofit	0	0	0	0	0	0	0	17,87 1	197,2 20	215,0 91
Other rehen sive i comp ncom e:
Chan n fina ncial deriv ative ges o s	0	0	0	0	0	-274	0	0	0	-274
f inco x effe Hereo me ta ct	0	0	0	0	0	33	0	0	0	33
Share -base d pay ment	0	0	0	-2,99 3	0	0	0	0	0	-2,99 3
ransl ation diffe Curre ncy t rence s	0	0	0	0	1	0	0	0	0	1
l oth hens ive in Tota	0	0	0	3	1	-241	0	0	0	3
er co mpre come l com preh ensiv e inc Tota	0	0	0	-2,99 -2,99 3	1	-241	0	17,87 1	197,2 20	-3,23 211,8 58
ome
h ow Trans actio n wit ners:
hares Treas ury s	0	0	839	0	0	0	0	0	0	839
l tran sacti ith o Tota on w wner s	0	0	839	0	0	0	0	0	0	839
Tota l cha in eq uity nges	0	0	839	-2,99 3	1	-241	0	17,87 1	197,2 20	212,6 97
Tota l equ ity 3 1.03. 2019	48,8 58	306, 537	-14,6 86	3,160	6,17 7	-505	403, 079	400, 641	3,136 ,466	4,28 9,72 7
Equit y 01 .01.2 018	48,8 58	306, 537	-18,1 59	3,874	6,27 1	-104 ,351	513,0 09	186,9 51	2,68 3,439	3,626 ,429
olida ted p rofit Cons	0	0	0	0	0	0	0	195,8 19	772,4 55	968, 274
Other rehen sive i comp ncom e:
Chan n fina ncial deriv ative ges o s	0	0	0	0	0	126,9 35	0	0	-138 ,748	-11,8 13
Hereo f inco me ta x effe ct	0	0	0	0	0	-22,8 48	0	0	22,84 8	0
-base Share d pay ment	0	0	0	2,279	0	0	0	0	0	2,279
ransl diffe Curre ncy t ation rence s	0	0	0	0	-95	0	0	0	0	-95
l oth hens ive in Tota er co mpre come	0	0	0	2,279	-95	104,0 87	0	0	-115 ,900	-9,62 9
l com preh ensiv e inc Tota ome	0	0	0	2,279	-95	104,0 87	0	195,8 19	656, 555	958, 645
actio n wit h ow Trans ners:
Treas hares ury s	0	0	2,634	0	0	0	0	0	0	2,634
Paid- out d ivide nd	0	0	0	0	0	0	-513 ,009	0	2,331	-510 ,678
Propo sed d ivide nd	0	0	0	0	0	0	403,0 79	0	-403 ,079	0
Tota l tran sacti ith o on w wner s	0	0	2,634	0	0	0	-109 ,930	0	-400 ,748	-508 ,044
l cha in eq uity Tota nges	0	0	2,634	2,279	-95	104,0 87	-109 ,930	195,8 19	255,8 07	450, 601
Tota l equ ity 3 1.12. 2018	48,8 58	306, 537	-15,5 25	6,15 3	6,17 6	-264	403, 079	382, 770	2,939 ,245	4,07 7,029
Equit y 01 .01.2 018	48,8 58	306, 537	-18,1 59	3,874	6,27 1	-104 ,351	513,0 09	186,9 51	2,68 3,439	3,626 ,429
olida ted p rofit Cons	0	0	0	0	0	0	0	107, 131	168, 125	275, 256
Other rehen sive i comp ncom e:
Chan n fina ncial deriv ative ges o s	0	0	0	0	0	-15,9 01	0	0	0	-15,9 01
Hereo f inco me ta x effe ct	0	0	0	0	0	5,892	0	0	0	5,892
Share -base d pay ment	0	0	0	570	0	0	0	0	0	570
Curre ncy t ransl ation diffe rence s	0	0	0	0	55	0	0	0	0	55
Tota l oth hens ive in er co mpre come	0	0	0	570	55	-10,0 09	0	0	0	-9,38 4
Tota l com preh ensiv e inc ome	0	0	0	570	55	-10,0 09	0	107, 131	168, 125	265,8 72
actio n wit h ow Trans ners:
hares Treas ury s	0	0	-523	0	0	0	0	0	0	-523
l tran sacti ith o Tota on w wner s	0	0	-523	0	0	0	0	0	0	-523
Tota l cha in eq uity nges	0	0	-523	570	55	-10,0 09	0	107, 131	168, 125	265, 349
Tota 1.03. 2018	58	537	83	4	6	-114	09	82
l equ ity 3	48,8	306,	-18,6	4,44	6,32	,360	513,0	294,0	2,85 1,464	3,89 1,777

Notes to the Account

Accounting Policy

General Information

P/F Bakkafrost is a limited company incorporated and domiciled in the Faroe Islands.

The Group's Annual Report as at 31December 2018 is available upon request from the company's registered office at Bakkavegur 9, FO-625 Glyvrar, Faroe Islands, or at www.bakkafrost.com.

This Condensed Consolidated Interim Report is presented in DKK.

Note 1. Statement of Compliance

This Condensed Consolidated Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting as adopted by the EU. It does not include all the information required for the full Annual and Consolidated Report and Accounts and should be read in conjunction with the Annual and Consolidated Report and Accounts for the Group as at 31 December 2018.

This interim report has not been subject to any external audit.

Note 2. Significant Accounting Policies

The accounting policies applied by the Group in this Condensed Consolidated Interim Report are the same as those applied in the Annual Report as at and for the year ended 31 December 2018. The Group has, however, as mentioned in the Annual Report 2018, applied the IFRS 16 Leases standard from 1 January 2019.

Note 3. Estimates and Risk Exposures

The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting principles and recognized amounts of assets, liabilities, income and expenses. The most significant estimates relate to the valuation of biological assets, which are measured at fair value. Estimates and underlying assumptions are reviewed on an ongoing basis and are based on the management's best assessment at the time of reporting. All changes in estimates are reflected in the financial statements as they occur.

The accounting estimates are described in the notes to the financial statements in the Annual Report 2018.

For other risk exposures, reference is made to the Management's Statement in the Annual Report for 2018, where Bakkafrost's operational and financial risks are described, as well as to Note 4.1 (Financial risk management) in the same report.

The risks and uncertainties described therein are expected to remain.

Note 4. Biomass

	h 31 M arc	h 31 M arc	31 De c
00 0 DK K 1 ,	20 19	20 18	20 18
Bio log ica l as ing set nt 01 .01 s c arr y am ou	1, 35 8, 46 2	1, 09 6, 66 5	1, 09 6, 66 5
du rod ion rch Inc e t uct rea se o p or pu ase s	29 8, 95 2	21 4, 92 1	1, 33 3, 16 0
Red ion du o h ing le ( f g ds sol d) uct e t est ts o arv or sa cos oo	-38 8, 90 9	-30 8, 31 4	-1, 27 3, 15 0
Fai alu dju th e b inn ing of th eri od ed stm ent at r v e a eg e p rev ers	-38 2, 77 5	-18 6, 95 6	-18 6, 95 6
Fai alu dju th nd of the rio d stm ent at r v e a e e pe	40 0, 64 6	29 4, 08 7	38 2, 77 5
al o f e lim ina tio t th e b inn ing of th eri od Rev ers n a eg e p	53 79 0 ,	59 75 8 ,	59 75 8 ,
Eli mi ion nat s	-49 22 1 ,	-55 48 2 ,	-53 79 0 ,
Bio log ica l as ing the d o f th eri od set nt at s c arr y am ou en e p	1, 29 0, 94 5	1, 114 67 9 ,	1, 35 8, 46 2
ice bi olo ica l as Co st set pr g s	93 9, 52 0	87 1, 38 2	1, 02 9, 47 7
ita lize d i Ca nte t p res	0	4, 69 2	0
Fai alu dju th nd of the rio d stm ent at r v e a e e pe	40 0, 64 6	29 4, 08 7	38 2, 77 5
Eli mi ion nat s	-49 22 1 ,	-55 48 2 ,	-53 79 0 ,
Bio ica ing log l as set nt s c arr y am ou	1, 29 0, 94 5	1, 114 67 9 ,	1, 35 8, 46 2
Bio ( lw ) ton ma ss nes
kg < 1	2, 87 2	2, 23 6	1, 95 8
1 k kg 2 g <	3, 47 0	3, 62 8	2, 95 9
2 k kg 3 g <	3, 24 9	3, 21 5	5, 18 9
3 k kg 4 g <	6, 06 9	5, 64 6	6, 01 0
4 k g <	18 37 9 ,	17 11 8 ,	22 96 2 ,
f b iom Vo lum at e o ass se a	34 03 9 ,	31 84 3 ,	39 07 8 ,

	h 31 M arc	h 31 M arc	31 De c
	20 19	20 18	20 18
mb of fis hes ( tho nd) Nu er usa
kg < 1	5, 29 7	5, 23 7	4, 95 1
1 k kg 2 g <	2, 30 0	2, 30 2	2, 11 3
2 k kg 3 g <	1, 29 0	1, 32 8	2, 04 4
3 k 4 kg g <	1, 69 2	1, 60 7	1, 78 2
4 k g <	3, 46 7	3, 20 0	4, 35 9
of fis To tal mb hes at nu er se a	14 04 6 ,	13 67 4 ,	15 24 9 ,
Nu mb of olt ele d ( tho nd ) er sm s r ase usa
Far mi No rth ng	1, 72 1	26 2	3, 97 8
Far mi We st ng	0	2, 87 2	8, 60 5
To tal mb of olt ele d nu er sm s r ase	1, 72 1	3, 134	12 58 3 ,
sit ivi in Sen ty DK K 1 00 0 ,
Ch e i n d isc nt rat 1% ang ou e +	90 06 7 ,	73 16 1 ,	93 58 6 ,
Ch e i n d isc nt rat 1% ang ou e -	-10 1, 21 0	-82 63 4 ,	-10 4, 99 1
Ch e i ale ric 5 D KK ang n s s p e +	-20 3, 03 1	-19 0, 23 1	-22 4, 14 3
Ch e i ale ric 5 D KK ang n s s p e -	20 3, 03 1	19 0, 23 1	22 4, 14 3
Ch e i n b iom lum 1% ang ass vo e +	-5, 85 7	-4, 41 6	-6, 55 1
Ch e i n b iom lum 1% ang ass vo e -	5, 85 7	4, 41 6	6, 55 1
ice s in On fo ard EU R F CA Os lo* e y ear rw pr
Pe rio d e nd	7.2 3	7.4 5	6.0 1
1 Q ( for rd) wa	6.8 9	6.6 2	6.4 8
2 Q ( for rd) wa	6.0 6	5.7 3	6.5 2
3 Q ( for rd) wa	6.0 6	5.8 0	5.9 4
4 Q ( for rd) wa	6.4 3	5.9 2	6.1 2

* Source Fish Pool

Note 5. Segments

i F t a r m n g s e g m e n	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
l re Ex ter na ve nu e	5 5 8, 9 7 0	5 8 4, 0 8 7
l re In ter na ve nu e	1 9 6, 4 3 2	8 2, 5 6 8
To ta l re ve nu e	7 5 5, 4 0 2	6 6 6, 6 5 5
ing Op t era ex p en se s	-4 8 3, 7 6 4	-4 0 3, 2 9 7
ia ion d a iza ion De t t t p rec an mo r	-4 1, 8 9 5	-3 4, 9 1 5
ion Op t l E B I T era a	2 2 9, 7 4 3	2 2 8, 4 4 3
j Fa ir v lue d tm ts f b io log ica l a ts a a us en o sse	1 7, 8 7 1	1 0 7, 1 3 1
ia Inc fro tes om e m as so c	2, 5 3 9	0
Re tax ve nu e	-3 1, 9 9 4	-2 6, 3 2 7
Ea ing be fo in ter t a d tax ( E B I T ) rn s re es n es	2 1 8, 1 5 9	3 0 9, 2 4 7
Ne t in ter t r es ev en ue	1 1 1	1, 0 0 1
in Ne t ter t e es xp en se s	9 6 -1, 4	0 3 3 -4,
f fec Ne t c ts ur ren cy e	-2 5 5	3 2 -1 4, 7
O he f ina ia l e t r nc xp en se s	-8 1 7	8 8 -1, 4
ing be fo ( ) Ea tax E B T rn s re es	2 1 5, 7 0 2	2 9 0, 3 5 5
Ta xe s	-4 6, 7 6 6	-4 3, 6 9 7
f i los fo he io d Pr t o t o r s r p er	1 6 8, 9 3 6	2 4 6, 6 5 8

l d d d d t V a e a e p r o c s u u	Q 1	Q 1
0 0 0 D K K 1,	2 0 9 1	2 0 8 1
l re Ex ter na ve nu e	2 6 0, 5 7 4	9 2, 9 9 4
l p ha f r ia l In ter ter na urc se o aw m a	-1 9 6, 4 3 2	-8 2, 5 6 8
ing Op t era ex p en se s	-5 8, 0 8 8	-1 8, 3 8 9
ia ion d a iza ion De t t t p rec an mo r	-4, 7 3 0	-3, 6 5 3
ion l Op t E B I T era a	1, 3 2 4	-1 1, 6 1 6
is ion fo Pro tra ts r o ne ro us co n c v	0	0
ing be fo in d ( ) Ea ter t a tax E B I T rn s re es n es	1, 3 2 4	-1 1, 6 1 6
in Ne t ter t e es xp en se s	-5 7	-2
f fec Ne t c ts ur ren cy e	0	-3 1 8
he f ina ia l e O t r nc xp en se s	0	-5
ing fo ( ) Ea be tax E B T rn s re es	1, 2 6 7	-1 1, 9 4 1
Ta xe s	-2 2 8	-1, 9 5 0
f i fo io Pr t o los t he d o p er r s r	1, 0 3 9	-1 3, 8 9 1

i h l, f i h i l d f i h f d F s m e a s o a n s e e	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
l re Ex ter na ve nu e	1 4 4, 1 6 6	1 7 4, 0 7 6
l re In ter na ve nu e	1 3 9, 2 4 5	1 2 6, 2 8 3
To ta l re ve nu e	2 8 3, 4 1 1	3 0 0, 3 5 9
f g ds l d Co t o s oo so	-1 6 1, 0 8 3	-1 5 6, 9 6 4
ing Op t era ex p en se s	-5 7, 0 7 6	-5 6, 9 6 2
De ia t ion d a t iza t ion p rec an mo r	-7, 1 4 8	-7, 2 0 7
ion Op t l E B I T era a	5 8, 1 0 4	7 9, 2 2 6
ia Inc fro tes om e m as so c	4, 4 0 8	2, 4 1 9
Ea ing be fo in ter t a d tax ( E B I T ) rn s re es n es	6 2, 5 1 2	8 1, 6 4 5
Ne t in ter t e es xp en se s	-3 1 2	-8 9 0
Ne t c f fec ts ur ren cy e	1, 6 8 0	1, 5 3 1
O he f ina ia l e t r nc xp en se s	-4 7	3 -1 4
ing be fo tax ( ) Ea E B T rn s re es	6 3, 8 3 3	8 2, 2 1 5
Ta xe s	9 0 -1 1, 4	8 -1 4, 7 7
f i los fo he io d Pr t o t o r s r p er	5 2, 3 4 3	6 7, 3 6 5

Reconciliation of reportable segments

i b f ( ) t G t E B T o r o u p e a r n n g s e o r e a x e s	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
Fa ing rm	2 1 5, 7 0 2	2 9 0, 3 5 5
V A P ( Va lue A d de d Pr du ts ) o c	1, 2 6 7	-1 1, 9 4 1
O ( is hm l, f is h O i l a d f is h d ) F F F Fe ea n e	6 3, 8 3 3	8 2, 1 2 5
E l im ina t ion s	-2 1, 4 6 6	-2 8 3 1 7,
Gr ing be fo tax ( E B T ) ou p ea rn s re es	2 5 9, 3 3 6	3 3 2, 3 5 7

ia i i ies As ts d l b l t t se an p er se g me n	3 1 Ma h rc	3 1 Ma h rc	3 1 De c
D K K 1, 0 0 0	2 0 1 9	2 0 1 8	2 0 1 8
Fa ing rm	5, 0 1 8, 4 8 9	5, 2 0 1, 4 8 8	4, 8 6 0, 2 2 7
V A P ( Va lue d de d p du ts ) a ro c	1 9 3, 5 0 0	1 9 4, 0 4 7	1 9 2, 8 4 1
F O F ( F is hm l, F is h O i l a d F is h Fe d ) ea n e	9 3 8 7 7, 7	9 2 9 9 7, 7	4 9, 4 5 5 7
E l im ina t ion s	-2 2, 9 4 7	-6 9 1, 9 5 2	0
l a To ta ts sse	6, 6 6, 2 9 1 4	6 3 2, 0 3 9 5,	8 0 2, 2 3 5, 5
ing Fa rm	6 9 0 1, 7, 4 4	8 8 3 9 1 4,	8 2, 1, 4 7 5 1
( lue d de d p du ) V A P Va ts a ro c	2 8, 5 7 8	8, 4 3 4	3 1, 0 7 5
( is hm l, is h i l a d is h d ) F O F F F O F Fe ea n e	1 7 0, 0 2 4	6 1 8, 0 3 5	2 0 9, 6 3 4
l im ina ion E t s	-1 8, 9 4 4	2 9 8, 9 5 4	2, 0 3 4
l l ia b i l i ies To ta t	1, 8 7 6, 7 0 2	1, 7 4 0, 2 6 2	1, 7 2 5, 4 9 4

Note 6. Capital Commitments

The Group had capital expenditure committed but not provided in these accounts at the date of the Statement of Financial Position of approximately DKK 352 million. DKK 170 million relate to the building of new hatchery stations. DKK 59 million relate to the building of a new biogas plant.

Note 7. Transactions with Related Parties

Note 5.2 in Bakkafrost's Annual Report for 2018 provides detailed information on related parties' transactions.

Transactions between P/F Bakkafrost and its subsidiaries meet the definition of related party transactions. As these transactions are eliminated on consolidation, they are not disclosed as related party transactions.

Note 8. Fair Value Measurements

All assets/liabilities, for which fair value is recognized or disclosed, are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.

Level 2: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable).

Level 3: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).

For biological assets, the fair value calculation is done using a valuation model (level 3 in the valuation hierarchy) where the value is estimated based on observable market prices per period end.

For more information on these calculations, please refer to Note 4.

For assets/liabilities that are recognized at fair value on a recurring basis, the Group determines, whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement).

There have been no transfers into or out of Level 3 fair value measurements.

As at 31 March 2019, the Group held the following classes of assets/liabilities measured at fair value:

D K K 1, 0 0 0		Co t s
d l ia b i l i ies d a fa ir v lue As ts t t se an m ea su re a	ir v lue Fa a	t am ou n	l Le 1 ve	l Le 2 ve	l Le 3 ve
io ica ( b iom ) B log l a ts sse as s	1, 2 9 0, 9 4 5	8 9 0, 2 9 9	0	0	1, 2 9 0, 9 4 5
ir v As ts d a t fa lue 3 1 / 3- 2 0 1 9 se me as ur e a	1, 2 9 0, 9 4 5	8 9 0, 2 9 9	0	0	1, 2 9 0, 9 4 5
ia b i l i ies d a fa ir v lue / L t t 3 1 3- 2 0 1 9 m ea su re a	0	0	0	0	0
io log ica l a ( b iom ) B ts sse as s	1, 1 1 4, 6 7 8	8 2 0, 5 9 1	0	0	1, 1 1 4, 6 7 8
d a fa ir v lue / As ts t 3 1 3- 2 0 1 8 se me as ur e a	1, 1 1 4, 6 7 8	8 2 0, 5 9 1	0	0	1, 1 1 4, 6 7 8
ia b i l i ies d a fa ir v lue / L t t 3 1 3- 2 0 1 8 m ea su re a	0	0	0	0	0
io log ica l a ( b iom ) B ts sse as s	1, 3 5 8, 4 6 2	9 7 5, 6 8 7	0	0	1, 3 5 8, 4 6 2
d a fa ir v lue / As ts t 3 1 1 2- 2 0 1 8 se me as ur e a	1, 3 5 8, 4 6 2	9 7 5, 6 8 7	0	0	1, 3 5 8, 4 6 2
ia i i ies fa ir v L b l t d a t lue 3 1 / 1 2- 2 0 1 8 m ea su re a	0	0	0	0	0

Note 9. Business Combinations

Q1 2019: There have been no new business combinations in Q1 2019.

2018:

On 1 July 2018, Bakkafrost purchased the business and assets in North Landing via Bakkafrost USA LLC.

The purchase is paid in cash and financed by existing facilities.

The key employees of North Landing will continue in Bakkafrost USA LLC.

The fair value of intangible assets has been determined on an estimated fair value. Fair value has been identified in customer relationship employing generally accepted valuation techniques. The market value of the customer relationship is measured to DKK 6.2 million.

The fair value of property, plant and equipment has been determined based a 3rd party valuation.

From 1 July to 31 December 2018, the acquired business contributed with a result of -8.5 mDKK to the Group's result.

Identifiable assets assumed:

D K K 1,	0 0 0
-------------------	-------------

i b le In tan ts g as se	1 3, 9 4 8
lan d e ip Pro ty t a t p er p n qu me n ,	1 3, 3 7 2
Inv to en ry	9 0 1, 5
To ta l n t i de t i f ia b le ts e n as se	2 8, 9 1 0

Note 10. APM

- Alternative Performance Measures

Bakkafrost's financial information is prepared in accordance with international financial reporting standards (IFRS). In addition, the management's intention is to provide alternative performance measures, which are regularly reviewed by the management to enhance the understanding of the company's performance, but not replacing the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. Bakkafrost's experience is that these APM's are frequently used by analysts, investors and other parties.

These APM's are adjusted IFRS measures, defined, calculated and used in a consistent and transparent manner over the years and across the company where relevant.

NIBD

Net interest-bearing debt consists of both current and non-current interest-bearing liabilities, less related current and non-current hedging instruments, financial instruments, such as debt instruments and derivatives and cash and cash equivalents. The net interest-bearing debt is a measure of the Group's net indebtedness that provides an indicator of the overall balance sheet strength. It is also a single measure that can be used to assess both the Group's cash position and its indebtedness. The use of the term 'net debt' does not necessarily mean that the cash included in the net debt calculation is available to settle the liabilities included in this measure. Net debt is an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate interest-bearing liabilities (both current and non-current), derivatives and cash and cash equivalents. A reconciliation is provided below.

	3 1 Ma r	3 1 De c
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
h a d c h e iva len Ca ts s n as qu	3 4 1, 5 7 4	3 0 9, 5 5 1
i fo in d c De t ter t- p os r es an ur ren cy sw ap	0	8 4, 6 3 0
iva ive De t r s	-6 1 3	-1 2 7, 2 5 5
d s ho in be ing de b Lo t- ter ter t- t ng - a n r m es ar	-8 6 2, 9 4 4	-5 2 4, 9 9 6
in be ing de b Ne t ter t- t es ar	-5 2 1, 9 8 3	-2 5 8, 0 7 0

Operational EBIT

Operational EBIT is EBIT aligned for fair value adjustments, onerous contracts provisions, income from associates and revenue tax.

Operational EBIT is a major alternative performance measure in the salmon farming industry. A reconciliation from EBIT to Operational EBIT is provided below.

	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
E B I T	2 6 0, 5 2 8	3 5 1, 4 4 5
ir v lue d j f Fa tm ts a a us en o b io log ica l a ts sse	-1 8 1 7, 7	-1 0 1 3 1 7,
On tra ts ero us co n c	0	0
fro ia Inc tes om e m as so c	-6, 9 4 7	9 -2, 4 1
Re tax ve nu e	9 9 3 1, 4	6, 2 3 2 7
ion l Op t E B I T era a	2 6 0 7, 7 4	2 6 8, 2 2 2

Operational EBIT per kg

i F t:	୪ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୊ୟ ୧୬ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୱୣ ୥ ୫ ୣ୬
a g g r m n s e m e n	୘୭ ୪ ୦ୟ ୢ ୴ ୪୳ ሺ ሻ ୲ୟ ୲ୣ ୰୴ ୣୱ ୭ ୫ ୣୱ ୥ ୵
V A P t:	୪ ୓୮ ୧୭୬ ୉ ୆ ୍ ୘ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୣ୥ ୫ ୣ୬
s e g m e n	୪ ୴ ୪୳ ୢ୳ ୢ ୪ ୥ ୘୭ ሺ ୧ୟ ሻ ୲ୟ ୲ୣ ୭ ୫ ୣୱ ୮ ୰୭ ୡୣ ୰ୟ ୵ ୫ୟ ୰ ୵
i d F V A P: a r m n a n	୧୭୬ ୪ ୧୬ ୢ ୓୮ ୉ ୆ ୍ ୘ ୊ୟ ୚ ୅ ୔ ୱ ୟ୲ ୲ ୣ୰ ୟ ୰୫ ୥ ୟ୬ ୣ୥ ୫ ୣ୬
g	୪ ୦ୟ ୢ ୴ ୪୳ ሺ ሻ ୘୭ ୲ୟ ୲ୣ ୰୴ ୣୱ ୭ ୫ ୣୱ ୥ ୵

EBITDA

Earnings before interest, tax, depreciations and amortizations (EBITDA) is a key financial parameter for Bakkafrost's FOF segment. EBITDA before other income and other expenses is defined as EBITDA less gains and losses on disposals of fixed assets and operations and is reconciled in the section Group overview. This measure is useful to users of Bakkafrost's financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciations and amortization expenses related primarily to capital expenditures and acquisitions, which occurred in the past, nonrecurring items, as well as evaluating operating performance in relation to Bakkafrost's FOF segments competitors. The EBITDA margin presented is defined as EBITDA before other income and other expenses divided by total revenues.

Adjusted EPS

Adjusted EPS is based on the reversal of certain fair value adjustments shown in the table below, as it is Bakkafrost's view that this figure provides a more reliable measure of the underlying performance.

Q 1	Q 1
2 0 9 1	2 0 8 1
2 1 2, 8 3 6	2 7 2, 3 0 1
-1 7, 8 7 1	-1 0 7, 1 3 1
0	0
3, 2 1 7	1 9, 2 8 4
	1 8 4, 4 5 4
	4 8, 6 3 2, 3 9 1
4. 0 7	3. 7 9
	1 9 8, 1 8 2 4 8, 6 6 5, 7 0 7

ROCE

Return on average capital employed (ROCE) is defined as the period's operational EBIT divided by the average capital employed, which is total assets adjusted for total current liabilities. The performance measure is expressed as a percentage and is useful for evaluating Bakkafrost's profitability.

	Q 1	Q 1
D K K 1, 0 0 0	2 0 1 9	2 0 1 8
ion l Gr Op t E B I T ou p - era a	2 6 7, 7 0 4	2 6 8, 2 2 2
i l loy d Av Ca ta Em era g e p p e	5, 5 7 9, 0 8 4	4, 7 1 4, 7 8 7
R O C E	4. 8 %	5. 7 %

Contacts

P/F BAKKAFROST Bakkavegur 9 FO-625 Glyvrar Faroe Islands Telephone: +298 40 50 00 Fax: +298 40 50 09 Email: bakkafrost@bakkafrost.com Website: www.bakkafrost.com