Bakkafrost P/f

Investor Presentation • Aug 23, 2016

Q2 2016

BAKKAFROST GROUP Oslo 23 August 2016

• This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document.

SUMMARY OF Q2 2016

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

HIGHLIGHTS

High spot prices – positive for Farming, negative for VAP

• Harvested13,004 tgw in Q2 2016 (14,182 tgw in Q2 2015)
• Feed sales of 16,295 tonnes in Q2 2016* (17,657 tonnes in Q2 2015*)
• Raw material purchase of 83,970 tonnes in Q2 2016 (86,012 tonnes in Q2 2015)
• Revenues of DKK 790 million in Q2 2016 (DKK 800 million in Q2 2015)
• Operational EBIT** of DKK 307 million in Q2 2016 (DKK 303 million in Q2 2015)
• Positive results in Farming and FOF segments, while loss in VAP segment
• Investment program 2016 – 2020 amounting DKK 2.2 billion
• Dividendof DKK 8.25 per share (NOK 10.37) paid out in April 2016

*) Including internal sale of 14,260 tonnes in Q2 2016 (15,551 tonnes in Q2 2015)

**) EBIT before fair value on biomass, onerous contracts, income from associates and revenue tax

Record result in Farming, while VAP segment is suffering heavily. FOF segment has good result

• Farming/VAP division increased margin from 22.62 NOK/kg in Q2 2015 to 27.88 NOK/kg in Q2 2016
• VAP segment delivered a margin of -18.37 NOK/kg in Q2 2016, compared with 7.13 NOK/kg in Q2 2015
• Farming margin was 34.47 NOK/kg in Q2 2016, compared with 20.07 NOK/kg in Q2 2015.
• FOF delivered a margin of 20.7% in Q2 2016, compared with 18.7% in Q2 2015
• Group Operational EBIT was DKK 307 million in Q2 2016, compared with DKK 303 million in Q2 2015

( ) D K K i l l i m o n	Q 2 2 0 1 6	Q 2 2 0 1 5	H 1 2 0 1 6	H 1 2 0 1 5
Op t ing er a re ve nu es	7 9 0	8 0 0	1, 6 9 4	1, 4 1 3
Op ion l E B I T D A t er a a	3 3 6	3 3 0	6 1 8	5 9 1
Op t io l E B I T er a na	3 0 7	3 0 3	6 1 5	3 8 5
Pr f i fo he io d t t o r p er	2 2 4	1 9 1	4 3 7	3 2 4
Op t ion l E B I T D A in er a a ma rg	4 2. 6 %	4 1. 2 %	3 6. 5 %	4 1. 8 %
Op t ion l E B I T in er a a ma rg	% 3 8. 9	% 3 7. 9	% 3 3. 1	% 3 8. 1
Op ion l E B I T / Kg ( Fa ing ) ( N O K ) t er a a rm	3 4. 4 7	2 0. 0 7	3 2. 6 8	2 1. 4 9
Op t ion l E B I T / Kg ( Fa ing d V A P ) ( N O K ) er a a rm a n	2 8 8 7.	2 2. 6 2	2 6 7. 7	2 4. 0 7
Op ion l E B I T / Kg ( V A P ) ( N O K ) t er a a	-1 8. 3 7	7. 1 3	1 5. 0 7 -	6. 4 5
E B I T D A in ( F is hm l, - i l a d fe d ) ma rg ea o n e	2 0. % 7	1 8. % 7	2 2. 6 %	2 3. % 7

SUMMARY OF Q2 2016

MARKETS AND SALES

• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

MARKETS & SALES

The shifting from Eastern Europe to other markets continued

• EU market share increased from 29% in Q2 2015 to 39% in Q2 2016
• USA increased from 17% to 23%
• Asia increased from 15% to 21%
• Eastern Europe decreased from 39% to 17%
• VAP/contract share was 36% in Q2 2016, compared with 30% in Q2 2015

To l s les f s lm ta a o a on by ke ts m ar	Q 2 2 0 1 6	Q 2 2 0 1 5	H 1 2 0 1 6	H 1 2 0 1 5
E U	3 9 %	2 9 %	3 9 %	3 4 %
U S A	2 3 %	1 7 %	2 2 %	1 8 %
As ia	2 1 %	1 5 %	2 1 %	1 3 %
Ea ter Eu s n rop e	% 1 7	% 3 9	% 1 8	% 3 5

Fr h s lm ly es a on o n by ke ts m ar	Q 2 2 0 1 6	Q 2 2 0 1 5	H 1 2 0 1 6	H 1 2 0 1 5
E U	1 9 %	% 5	1 9 %	8 %
U S A	3 0 %	2 2 %	2 9 %	2 5 %
As ia	2 8 %	2 0 %	2 9 %	1 8 %
Ea ter Eu s n rop e	2 3 %	5 3 %	2 3 %	4 9 %

Q2 MARKET ENVIRONMENT

M A R K E T C U R R E N C Y	Q 2 2 0 1 6	Q 2 2 0 1 5	C ha % ng e
( ) Na da No E U R s q rw ay	6, 8 5	4, 4 2	% 5 4, 9
U B No t h Ea t U S 1 2- 1 4 l b H O G ( U S D ) r s	3, 9 6	2, 9 7	3 3, 3 %
D K K	Q 2 2 0 1 6	Q 2 2 0 1 5	C % ha ng e
Na da No s q rw ay	1, 0 0 5	3 3, 0 1	4, % 5 5
S O G U B No t h Ea t U 1 2- 1 4 l b H r s	2 6, 0 8	2 0, 0 5	% 3 0, 1

S U P P L Y D E V E L O P M E N T	Q 2 2 0 1 6	Q 2 2 0 1 5	ha C % ng e
No rw ay	2 4 8 0 4 0	2 6 7 4 8 0	% 7, 3 ‐
U K	3 6 2 0 7	3 6 9 0 0	% 1, 7 ‐
la d Ire n	2 8 8 0	4 1 4 0	3 0, 4 % ‐
Fa ro es	1 7 7 2 4	1 6 2 6 9	8, 9 %
l To Eu ta ro p e	3 0 4 9 1 4	3 2 4 8 9 7	6, 1 % ‐
h le C i	9 5 2 2 0	1 1 8 6 2 0	1 9, 7 % ‐
da Ca na	3 3 8 4 0	3 4 5 6 0	% 2, 1 ‐
S U A	9 0 4 5	0 0 4 5	3, 3 % 1
l ica To Am ta er s	1 3 3 6 5 0	1 5 7 2 3 0	% 1 5, 0 ‐
he O t r	1 6 7 4 0	1 5 9 3 0	5, 1 %
In to ts ve n ry m ov em en	1 6 2 6 0	1 3 4 0 ‐
( ) l l d i To So Q ta t ty ua n	4 7 1 3 0 0	4 9 7 8 0 0	% 5, 3 ‐

4,7 4,4 4,5 4,8 6,1 6,9 - 10,0 20,0 30,0 40,0 50,0 60,0 - 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 EUR DKK Nasdaq Norway (EUR) Nasdaq Norway (DKK)

PRICE US – NORTH EAST

PRICE NORWAY

GLOBAL MARKETS

Undersupply leads to high market prices

• The NASDAQ salmon price for size 4-5
• Increased y/y Q2 2016 / Q2 2015 by ~69% by 26.68 NOK/kg from 38.73 to 65.41
• Increased q/q Q2 2016 / Q1 2016 by ~10% by 6.03 NOK/kg from 59.38 to 65.41

Reduced global supply in Q2 2016

5% reduced global supply in Q2 2016, compared with Q2 2015, corresponding to 26,500 tonnes

Spot prices (NASDAQ) on superior 4-5 [NOK/kg HOG]

Change in global market supply and market price

• 26 500 tonnes lower supply compared with Q2 2015
• Russia and Ukraine affected most
• USA market down 10 900 tonnes, corresponding to 11%
• EU market down 3 900 tones corresponding to 2%

No change YTD

• 979 900 tonnes sold YTD
• Increased sales in ASIA
• Reduced sales in Eastern Europe

Q L l i 2 2 0 1 6 o s p p n w u y	Q f S ( O G R d d l i 2- 2 0 1 6 A t l t i l h d t t d H e u c e s u p p y n o a n c a m o n e a o n g u e -	)
-----------------------------------------------------------------------------------	-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	---

	Es im t te a	d v lum Q 2 c o es om		iso p ar n		Es im d v lum t te a o es		Y T D co	iso mp ar n
Ma ke ts r	Q 2 2 0 1 6 E	Q 2 2 0 1 5	Vo lum e	%		H 1 2 0 1 6 E	H 1 2 0 1 5	Vo lum e	%
E U	2 3 1 0 0 0	2 3 4 9 0 0	3 9 0 0 -	2 % -		4 3 8 0 0 5	4 6 0 0 5 7	2 9 0 0 -	1 % -
U S A	8 5 0 0 0	9 5 9 0 0	1 0 9 0 0 -	1 1 % -		1 8 8 1 0 0	1 8 5 9 0 0	2 2 0 0	1 %
Ru ia ss	1 2 2 0 0	2 5 7 0 0	1 3 5 0 0 -	5 3 % -		3 2 3 0 0	4 4 1 0 0	1 1 8 0 0 -	2 7 % -
Ja p an	1 2 0 0 0	1 0 8 0 0	1 2 0 0	% 1 1		2 6 8 0 0	2 1 9 0 0	4 9 0 0	% 2 2
Gr C h ina ter ea	2 3 0 0 5	2 3 0 0 5	1 8 0 0 -	7 % -		4 7 0 0 0	4 8 3 0 0	1 3 0 0 -	3 % -
A S E A N	1 3 0 0 0	1 2 9 0 0	1 0 0	1 %		3 0 7 0 0	2 7 8 0 0	2 9 0 0	1 0 %
La t in Am ica er	3 5 5 0 0	3 6 8 0 0	1 3 0 0 -	4 % -		7 7 4 0 0	7 2 6 0 0	4 8 0 0	7 %
U kra ine	1 9 0 0	3 0 0 7	1 8 0 0 -	9 % 4 -		3 9 0 0	0 0 7 7	3 8 0 0 -	9 % 4 -
O he ke t ts r m ar	5 7 2 0 0	5 1 8 0 0	5 4 0 0	1 0 %		1 1 5 7 0 0	1 1 4 9 0 0	8 0 0	1 %
To l a l l m ke ta ts ar	4 1 3 0 0 7	4 9 8 0 0 7	2 6 0 0 5 -	% 5 -		9 0 0 7 5 7	9 9 9 0 0 7	4 2 0 0 -	0 %

Comments:

Greater China = China / Hong Kong / Taiwan (incl. estimated re‐export from Vietnam) ASEAN = Association of Southeast Asian Nations (estimated re‐export from Vietnam subtracted) Latin America (including both Mexico and Caribbean + domestic consumption in Chile) All figures above are in tonnes hog, and are rounded to the nearest 100 tonnes.

Source: Kontali

SHORT TERM SUPPLY OUTLOOK

Low supply ahead

• 8-9% drop in global supply expected in H2 2016
• Temporary reduction in Norway
• Biological challenges in Chile
• Europe expected to generate positive growth from Q4 2016
• Chile continues to drop

SUPPLY - TOTAL

Source: Kontali

MARKETS AND SALES

SEGMENT INFORMATION

• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

Andrias Petersen, manager Bakkafrost Harvest, with Innovation Honours 2016 awarded to Bakkafrost for developing a concept to bathe salmon in freshwater onboard the wellboat "Hans á Bakka"

Harvested volumes

• Harvested volumes decreased by 8% in Q2 2016, compared with Q2 2015
• The North region harvested 68% of the total quantity in the quarter and the west region harvested the remaining 32%.

Smolt transfer

• Bakkafrost transferred 1.9 million smolts in Q2 2016 (1.4 million smolts in Q2 2015)
• The plan is to transfer 10.4 million smolts in 2016

Seawater temperatures in the Faroe Islands

Temperatures in Q2 2016 were in average the same as last year

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

Record high prices and good margin

• The operational EBIT increased 44% from DKK 248 million in Q2 2015 to DKK 358 million in Q2 2016
• Good biological performance of harvested fish
• Presence of ISA not confirmed despite intensive testing since the notice on 14 July 2016
• Sundalagið in West Region and Kunoyarnes and Haraldsund in North Region were harvested in this quarter. Harvest in Kunoyarnes and Haraldsund continued into third quarter.

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

Operation

• Farming EBIT of NOK 34.47 per kg in Q2 2016, compared to 20.07 in Q2 2015
• High prices and good biological performance
• North Region better performance in the quarter than West Region
  • Better Harvest weight
  • Better FCR
  • Better TGC
  • Lower cost per kg
• West Region harvested early in the quarter, and North Region harvested later in the quarter

34,47 20,07 32,68 21,49 0,00 5,00 10,00 20,00 25,00 30,00 35,00 40,00

Q2 2016 Q2 2015 H1 2016 H1 2015

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

( O / ) N K k g	Q 2 2 0 1 6
	N t h o r R i e g o n	W t e s R i e g o n	F i a r m n g
O / t i l E B I T k p e r a o n a g g w	3 7. 9 2	2 6. 9 7	3 4. 4 7

15,00

VAP revenues and margin

• Revenues decreased by 2% to DKK 187 million in Q2 2016 from DKK 191 million in Q2 2015
• Operating EBIT in Q2 2016 DKK -68 million, compared with DKK 31 million in Q2 2015
• Development in spot prices during quarter not favouring the VAP Segment. Contracts not reflecting recent development in spot prices
• Bakkafrost has already signed approx. 50% of VAP capacity for 2017 and renegotiated the prices for the remaining quantities from end of Q3 2016 in line with the forward price picture
• Full impact from Q4 2016

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

• EBITDA DKK 45 million in Q2 2016, compared with DKK 53 million in Q2 2015
• EBITDA margin of 20.7% in Q2 2016, compared with 18.7% in Q2 2015

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

Raw material sourcing volume stable

Havsbrún sourced 83,970 tonnes of raw material in Q2 2016, compared with 86,012 tonnes in Q2 2015

*Including sales to Bakkafrost, corresponding to ~88% of feed volumes in Q2 2016 (Q2 2015: 88%)

Sourcing of raw material (tonnes)

BAKKAFROST / Q2 2016 PRESENTATION

MARKET CONDITIONS FEED

Feed sales marginally lower

Quantity of feed sold was 16,295 tonnes in Q2 2016, compared with 17,657 tonnes in Q2 2015

High market prices on the spot market for marine ingredients in Q2 2016 compared with Q2 2015

• Fishmeal prices increased significantly in Q2 2016 compared with Q1 2016
• Fish oil prices decreased slightly in Q2 2016 compared with Q1 2016

Volumes of raw material purchase and feed sale [tonnes]

• SUMMARY OF Q2 2016
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS
• OUTLOOK
• APPENDIX

BAKKAFROST / Q2 2016 PRESENTATION

Revenues of DKK 790 million. Lower

GROUP PROFIT AND LOSS

• harvested volumes and lower sales in FOF, but higher spot prices
• Operational EBIT increased from DKK 303 million to DKK 307 million
• Fair value of biomass decrease although higher spot prices at the end of Q2 2016, due to lower biomass
• Revenue tax (4.5% of harvested volumes at Nasdaq prices) recognised as cost, amounted to DKK -30 million
• Provision for onerous contracts DKK 23 million Part of the provisions have been realised in Q2 2016
• Financial items negative by DKK 6 million
• Taxes amounted to DKK -48 million
• Profit after tax increased from DKK 191 million in Q2 2015 to DKK 224 million in Q2 2016

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

* Operational EBITDA and EBIT adjusted for fair value adjustment of biomass, onerous contracts, income from associates and revenue tax

BALANCE SHEET

• Investments in PPE of DKK ~ 200 million in Q2 2016
• Financial assets nearly unchanged from year-end 2015
• The carrying amount of biological assets has decreased, compared to end 2015
• Inventory increased DKK 63 million from end of 2015
• Changes in equity because of positive results in the period and payment of dividend in quarter
• NIBD at DKK 603 million up from DKK 391 million at end 2015*
• Equity ratio 61% (Covenants 35%)

* Incl. unrealised exchange gain, losses and deposits on financial derivatives related to the debt

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

CASH FLOW

• Cash flow from operations lower in Q2 2016 than Q2 2015:
• Increase in inventory
• Increase in receivables
• Cash flow from investments represents investments in property, plant and equipment
• Cash flow from financing is affected negatively by dividend payment and financing of associated company
• Undrawn loan facilities of DKK 643 million

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

• SUMMARY OF Q2 2016
• MARKETS AND SALES
• SEGMENT INFORMATION
• GROUP FINANCIALS

OUTLOOK

APPENDIX

OUTLOOK

Market

Tight market balance in 2016, global supply reduction of 8-9% in H2 2016

Farming

• 2016 estimated harvest volumes at 48,000 tonnes (excl. Faroe Farming)
• Faroe Farming part of Bakkafrost from 1 July 2016
• Faroe Farming estimated harvest volumes for H2 2016 at 1,000 tonnes
• Expected smolt release in 2016, 11.1 million pieces (incl. 0.7 from Faroe Farming)
• Intensive ISA tests to continue for a total period of six months before converting back to normal testing procedures

VAP

• Renegotiated contracts from end of Q3 2016 in line with the forward price picture
• Contracted 50% of capacity for 2017

Fishmeal, -oil and feed

Forecast for feed sales, 80,000 tonnes in 2016

Business development

• Optimizing of the value chain according to the announced investment plan continues
• Pursuing organic growth

• Financial flexibility enables M&A

• SUMMARY OF Q2 2016

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

DEVELOPMENT PER QUARTER Q1 2013 – Q2 2016

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

Turnover for the Bakkafrost Group has increased from 820 mDKK in 2010 to 2.9 bDKK in 2015.

Operational EBIT for the Bakkafrost Group has increased from 247 mDKK in 2010 to 1.0 bDKK in 2015.

The margin in Farming was NOK 19.63 per kg in 2015 – the highest ever.

The margin in VAP was NOK 5.58 per kg in 2015 – at the same time as Farming margin was record high.

SIZE AND SURVIVAL MATTERS!

• Yield per smolt ^a key KPI
• Function of average harvest weight and mortality
• Faroe Island performs on both parameters

2010-2012G vs 2013G

Average mortality (%) 2010-2012G vs 2013G

FAROE ISLANDS

• 18 islands – 1,387 km²
• 49,192 inhabitants (January 2016)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)
• Key sectors (% of wage earners, 2014)
• Service/public admin.: ~40%
• Private service: ~31%
• Construction: ~12%
• Fishing : ~17%
• Unemployment rate (June 2015): 3.8%
• Total working force, (number of people 2014): 28,707
• GDP: DKK 14.7bn (2013)
• GDP/capita: DKK 305,000 (2013) (Norway: 360,000) (2013)

Total export of fish products (2013)

• DKK 6,171 million
• whereof farmed fish accounts for 48%

TAXES

• Total percent of GDP: 42.4% (2013)
• Corporate tax: 18%
• Farming revenue tax : 4.5% of revenues from 1. Jan 2016 more details see page 44 in Bakkafrost presentation CMD june-2016
• Restriction on a single foreign ownership of 20% in farming companies
• One company may max. control 50% of licences in the Faroe Islands Source: Hagstova Føroya

LARGEST SHAREHOLDERS

20 largest shareholders

÷ No of shares		÷ Account name	$\triangleq$ type	÷ Citizensh
4.594.437	9,4%	Jacobsen Oddvør		FRO
4.493.380	9,2%	Jacobsen Johan Regin		FRO
3.421.958	7,0%	Nordea Bank Danmark S/A NORDEA (DK)	NOM	DNK
2.243.147	4.6%	FOLKETRYGDFONDET		NOR
1.670.544	3,4%	Skandinaviska Enskil A/C CLIENTS ACCO	NOM	SWE
1.292.877	2.6%	CLEARSTREAM BANKING	NOM	LUX
942.892	1,9%	STATE STREET BANK AN A/C CLIENT OF	NOM	USA
926.904	1.9%	SWEDBANK ROBUR SMABO NORDEN		SWE
919.025	1.9%	STATE STREET BANK AN A/C EXEMPT L	NOM	USA
870.586	1,8%	The Bank of New York BNY MELLON	NOM	USA
863.282	1,8%	J.P. Morgan Chase Ba A/C US RESIDENT	NOM	USA
856.316	1,8%	JP Morgan Bank Luxem JPML SA RE CLT.	NOM	LUX
815.573	1.7%	VERDIPAPIRFONDET DNB		NOR
502.174	1,0%	STATE STREET BANK & A/C CLIENT FUN	NOM	USA
449.874	0.9%	STATE STREET BANK & S/A SSB CLIENT	NOM	USA
440.000	0.9%	VERDIPAPIRFONDET HAN NORGE		NOR
437.955	0.9%	KLP AKSJENORGE INDEK		NOR
393.482	0.8%	VERDIPAPIRFONDET ALF		NOR
383.026	0.8%	OM Holding AS		NOR
382.434	0.8%	UBS (LUXEMBOURG) S.A UBS(LUXEMB( NOM		LUX
26.899.866	55,1%
48.858.065		100 Total number of shares as per 23. Aug 2016
278.213		0.7 Wherof own shares
48.579.852		99,3 Total number of outstanding shares

Origin of shareholders, 5 largest countries

No of shares	% Origin	No of shareholders
12.762.990	26,1% Faroe Isl	1.332
9.958.578	20,4% UK	116
9.599.938	19,6% Norway	2.854
6.667.704	13,6% USA	101
3.111.471	6,4% Luxembourg	38

Share development 12 months development NOK/shareTraded daily

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