Bakkafrost P/f

Investor Presentation • Nov 10, 2020

Q3 2020

BAKKAFROST GROUP Glyvrar 10 November 2020

DISCLAIMER

• 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 Q3 2020

MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

HIGHLIGHTS

	 11,135 tgw in Q3 2020 (12,938 tgw in Q3 2019) Harvest in the Faroe Islands (FO):
Operation	 Harvest in Scotland (SCT): 10,476 tgw in Q3 2020
	 Feed sales of 39,869 tonnes in Q3 2020 (33,874 tonnes in Q3 2019)
	 Raw material purchase of 24,101 tonnes in Q3 2020 (17,845 tonnes in Q3 2019)
Revenues and	 Revenues of DKK 1,123 million in Q3 2020 (DKK 996 million in Q3 2019)
Operational EBIT	 Operational EBIT** of DKK 103 million in Q3 2020 (DKK 303 million in Q3 2019)
Cash Flow	 of DKK 105 million in Q3 2020 (DKK 779 million in Q3 2019) Cash flow from operations
Segments	 Positive operational EBIT for FO segments, but negative for SCT

*) Including internal sales of 34,353 tonnes in Q3 2020 (26,156 tonnes in Q3 2019)

**) EBIT aligned for fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax

SUMMARY OF THE QUARTER

(DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	1,123	996	3,513	2,906
Operational EBITDA	188	373	853	1,091
Operational EBIT	103	303	533	910
Profit for the period	177	181	501	582
Operational EBITDA margin	16.7%	37.4%	24.3%	37.5%
Operational EBIT margin	9.1%	30.5%	15.2%	31.3%
Operational EBIT/Kg (Farming FO) (NOK)	12.43	23.61	15.90	25.49
Operational EBIT/Kg (Farming FO and VAP) (NOK)	15.24	26.25	18.36	26.39
Operational EBIT/Kg (VAP) (NOK)	5.87	9.23	4.99	2.85
Operational EBIT/Kg (Farming SCT) (NOK)	-3.89	n/a	1.68	n/a
EBITDA margin (Fishmeal, -oil and Feed)	14.4%	19.5%	15.1%	20.8%

Group Operational EBIT was DKK 103 million in Q3 2020, compared to DKK 303 million in Q3 2019

* Operational EBIT in NOK/kg

** EBITDA margin

SUMMARY OF Q3 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

MARKETS & SALES SALES TO WESTERN EUROPE INCREASED – OTHER MARKETS DECREASED

Total sales of salmon by markets Q3 2020 Q3 2019 YTD 2020 YTD 2019 FO SCT Total FO SCT Total FO SCT Total FO SCT Total Western Europe 56% 92% 71% 45% n/a 45% 57% 89% 69% 46% n/a 46% North America 24% 7% 16% 23% n/a 23% 24% 6% 17% 24% n/a 24% Asia 9% 0% 5% 24% n/a 24% 13% 1% 8% 25% n/a 25% Eastern Europe 11% 0% 6% 8% n/a 8% 6% 0% 4% 5% n/a 5% Rest of the world 0% 2% 1% 0% n/a 0% 0% 4% 2% 0% n/a 0% Total 100% 100% 100% 100% n/a 100% 100% 100% 100% 100% n/a 100%

Fresh salmon only by	Q3 2020		Q3 2019			YTD 2020			YTD 2019
markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	29%	92%	66%	24%	n/a	24%	28%	89%	62%	26%	n/a	26%
North America	38%	7%	19%	32%	n/a	32%	41%	6%	21%	32%	n/a	32%
Asia	14%	0%	6%	34%	n/a	34%	22%	1%	10%	36%	n/a	36%
Eastern Europe	19%	0%	8%	10%	n/a	10%	10%	0%	4%	6%	n/a	6%
Rest of the world	0%	2%	1%	0%	n/a	0%	0%	4%	2%	0%	n/a	0%
Total	100%	100%	100%	100%	n/a	100%	100%	100%	100%	100%	n/a	100%

Sales & volume (FO only)

Western Europe

North America

Harvest volumes used in the VAP

Average spot prices decreased in Q3 2020 (NOK/KG)

Spot prices were lower in Q3 2020 (mainly a Covid-19 effect)

Global harvest grew 5% y/y

FX: NOK still weak

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

Change in global market [volume harvested and market price]

Source: Kontali

Global Harvest growth of 5%

Europe flat development

• Poor biological performance in Norway
• UK harvest impacted by biological incidents

Americas grew 13%

• 16% increase in Chile
  • Good productivity and high average harvest weights
• Minor absolute changes in North America

Inventory

Build-up primarily relates to Chile and to some extent Norway

Supply Development		Q3 2020 Q3 2019 Change
Norway	322	321	0.5 %
UK	49	50	-3.4 %
Faroes	16	18	-10.9 %
Iceland	5	4	27.3 %
Ireland	4	4	20.0 %
Total Europe	397	397	0.0 %
Chile	184	159	15.6 %
Canada	33	32	4.6 %
USA	5	6	-15.6 %
Total Americas	222	197	12.9 %
Other	24	19	26.2 %
Total (Harvested quantity)	642	612	4.9 %

Source: Kontali

Global Supply growth of 3.7%

EU grew 7%

• Consuming higher proportion of EU harvest
• Covid-19 driven logistic issues to remote markets, and reduced demand from remote markets

USA grew 10%

Demand boosted by low prices for Chilean salmon

Greater China dropped 37%

• Logistical challenges for export of Chilean salmon
• Covid-19 scare related to fresh salmon in China

Latin America grew 10%

Significant increase in Latin America

Salmon markets, sold quantity (head on gutted - HOG)

	Estimated volumes Q3 comparison				Estimated volumes H1 comparison
Markets	Q3 2020 E	Q3 2019	Volume	%	H1 2020	H1 2019	Volume	%
EU	296,200	276,100	20,100	7%	463,700	463,500	200	0%
USA	128,900	117,600	11,300	10%	240,800	230,600	10,200	4%
Russia	22,600	21,200	1,400	7%	28,000	31,700	-3,700	-12%
Japan	16,800	12,300	4,500	37%	28,100	25,700	2,400	9%
Greater China	20,400	32,600	-12,200	-37%	59,200	66,200	-7,000	-11%
ASEAN	17,600	18,700	-1,100	-6%	34,400	34,900	-500	-1%
Latin America	43,700	39,600	4,100	10%	73,200	80,600	-7,400	-9%
Ukraine	5,600	5,800	-200	-3%	8,600	8,400	200	2%
Other markets	75,100	80,000	-4,900	-6%	141,900	134,500	7,400	6%
Total all markets	626,900	603,900	23,000	3.8 %	1,077,900	1,076,100	1,800	0.2 %

Comments:

Greater China = China / Hong Kong / Taiwan (incl. estimated re-export from Vietnam & Thailand) ASEAN = Association of Southeast Asian Nations (estimated re-export from Vietnam & Thailand 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.

SHORT TERM SUPPLY OUTLOOK TIGHT SUPPLY GROWTH IN 2021

Global supply growth will be tight in 2021

• Somewhat increased European supply growth expected up until 2H 2021
  • Limited supply growth expected for the rest of 2021
• 2021 drop in Americas driven by Chile
  • Temporary low smolt release 2H 2019/1H 2020

Source: Kontali

SUMMARY OF Q3 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK

FARMING – HARVEST VOLUME DECREASED HARVEST IN THE FAROE ISLANDS – INCREASED AVG. SMOLT SIZE

Harvest Volumes tonnes [HOG]	Q3 2020	Q3 2019	YTD 2020	YTD 2019
FO - North Region	5,337	3,651	24,543	18,252
FO - West Region	4,681	7,340	7,450	19,055
FO - South Region	1,117	1,947	2,750	1,947
FO – Total	11,135	12,938	34,743	39,254
SCT	10,476	n/a	25,681	n/a
Total (FO & SCT)	21,611	12,938	60,424	39,254

Sea water Temperatures at 18m depth in the Faroe Islands

FARMING – OPERATIONAL PERFORMANCE

REVENUE AND OPERATIONAL EBIT DECREASED IN THE FAROE ISLANDS

Faroe Islands (FO)
Operational EBIT (mDKK)
231 (Q3 2019)		97 (Q3 2020)
Operational EBIT margin (%)
33 (Q3 2019)		18 (Q3 2020)
Operating revenue (mDKK)
693 (Q3 2019)		530 (Q3 2020)

Scotland (SCT)

Compared to the Faroe Islands, Scotland had a lower operational EBIT and EBIT margin.

Compared to Q2 2020, SCT's operational EBIT margin decreased from 7.6% to -6.8%.

Farming FO (DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	530	693	1,737	2,207
Operational EBIT	97	231	385	765
Operational EBIT margin	18%	33%	22%	35%

Farming SCT (DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	417	n/a	1,206	n/a
Operational EBIT	-28	n/a	30	n/a
Operational EBIT margin	-7%	n/a	2%	n/a

FARMING – OPERATIONAL PERFORMANCE

Average weights (HOG):

FO (North):	5.13 kg
FO (West):	5.56 kg
FO (South):	5.59 kg
SCT:	4.17 kg

The biological performance was very good in the quarter, good growth and low mortality rate on harvested fish.

The market conditions were significantly affected by the Covid-19 during the quarter.

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

(NOK/kg)	Q3 2020
	FO				SCT
	North	West	South	Total	Total
Op. EBIT/kg gw	11.47	15.80	2.89	12.43	-3.89

Freight per kilo sold fresh salmon (FO) [Q3 2019 = Index 100]

VALUE ADDED PRODUCTS (VAP) HIGHER VOLUMES, BUT LOWER OPERATIONAL EBIT

(DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	247	217	829	716
Operational EBIT	22	26	60	27
Operational EBIT margin	9%	12%	7%	4%
VAP produced volumes (tgw)	5,313	3,694	17,141	12,471

Margin - EBIT per kg total VAP produced [NOK/kg]

FISHMEAL, OIL AND FEED (FOF) HIGHER RAW MATERIAL SOURCING, BUT LOWER EXTERNAL SALES OF FISHMEAL

(DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	481	484	1,060	1,050
EBITDA	69	94	160	218
EBITDA margin	14%	20%	15%	21%
Feed sold (tonnes)*	39,869	33,874	81,113	69,010
Fishmeal sold external (tonnes)	2,701	10,288	17,175	27,646

* Including internal sales, corresponding to 86% of feed volumes in Q3 2020 (Q3 2019: 77%)

Sourcing of raw material (tonnes)

MARKET CONDITIONS FEED SIGNIFICANT INCREASE IN FEED SALES

Total feed sales increased (tonnes)

39,869 (Q3 2020) 33,874 (Q3 2019) 18%

External feed sale decreased (tonnes)

Raw material (tonnes)

5,516 (Q3 2020) 7,718 (Q3 2019)

Feed sale (tonnes) -29% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Raw material Internal feed sale Total feed sale

Volumes of raw material purchase and feed sale [tonnes]

Market fluctuations

The fishmeal price and the fish oil price decreased in Q3 2020, compared to the previous quarter

Fishmeal and fish oil price index in DKK (Q1 2015 = 100)

Source: Holtermann

SUMMARY OF Q3 2020 MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

Faroe Islands, Haraldsund (A72) Image from Northend of Kunoy

GROUP PROFIT AND LOSS HIGHER REVENUE, BUT REDUCED OPERATIONAL EBIT

(DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Operating revenue	1,123	996	3,513	2,906
Operational EBITDA	188	373	853	1,091
Operational EBIT	103	303	533	910
Fair value adjustment of biological assets	124	-70	140	-117
Onerous contracts	0	0	0	0
Income from associates	0	8	0	10
Revenue tax	-9	-21	-51	-85
EBIT	218	221	622	718
Net financial items	-23	2	-36	-7
EBT	195	223	585	711
Taxes	-18	-42	-85	-129
Profit for the period	177	181	501	582
Operational EBITDA margin	16.7%	37.4%	24.3%	37.5%
Operational EBIT margin	9.1%	30.5%	15.2%	31.3%
Operational EBIT/kg (Farming FO and VAP) (NOK)	15.24	26.25	18.36	26.39
Operational EBIT/kg (Farming SCT) (NOK)	-3.89	n/a	1.68	n/a
EBITDA margin (fishmeal, oil and feed)	14.4%	19.5%	15.1%	20.8%

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

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE

Operational EBIT* (mDKK)

1,165 1,378 1,075 1,325 17.57 21.08 16.44 19.04 533 6.52 2016 2017 2018 2019 2020 3.59 5.08 3.79 4.07 3.19 4.72 6.84 6.48 4.98 2.06 3.62 3.57 2.55 4.83 1.27 5.64 5.60 3.61 5.89 2016 2017 2018 2019 2020

Adjusted EPS (DKK)

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

BALANCE SHEET

Headlines (mDKK)
Intangible assets:			4,491 (Q3 2020)
PPE:			3,978 (Q3 2020)
Biological assets: * (whereof mDKK 124 are fair value adjustments)	1,902 (end of 2019)	245	2,146* (Q3 2020)
Inventory:	549 (end of 2019)	65	614 (Q3 2020)
Receivables:	626 (end of 2019)	-101	525 (Q3 2020)
Cash & cash equiv.:	1,310 (end of 2019)	-864	446 (Q2 2020)
Equity:	8,497 (end of 2019)	265	8,761 (Q3 2020)
Equity ratio:			68% (Q3 2020)

(DKK million)	Q3 2020	End 2019
Intangible assets	4,491	4,396
Property, plant and equipment	3,978	3,780
Right of use assets	380	333
Financial assets	117	119
Long-term receivables	9	4
Deferred tax assets	58	38
Biological assets	2,146	1,902
Inventory	614	549
Receivables	525	626
Other receivables	58	46
Cash and cash equivalents	446	1,310
Total Assets	12,821	13,101
Equity	8,761	8,497
Deferred tax and other taxes	1,218	1,124
Long-term interest-bearing debt	1,703	2,328
Long-term leasing debt	288	226
Financial derivatives	16	15
Short-term leasing debt	130	108
Accounts and other payables	704	804
Total Equity and Liabilities	12,821	13,101

CASH FLOW

(DKK million)	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Cash flow from operations	105	779	581	1,182
Cash flow from investments	-176	-544	-473	-806
Cash flow from financing	63	2,053	-972	1,919
Net change in cash	-8	2,289	-864	2,295
Cash at the end of the period	446	2,612	446	2,612
Undrawn facilities	2,163	1,481	2,163	1,481

NIBD was increased by:

• Net investments (mDKK 176)
• Change in working capital (mDKK 10)

NIBD was decreased by:

Cash flow, operating activities (mDKK -45)

Development in NIBD in DKK millions

NIBD and available funding

Financing end Q3 2020

• NIBD: DKK 1,257 million
• Bank facilities of EUR 352 and GBP 100 million
• Undrawn credit facilities: DKK 2,163 million

Q3 ESG UPDATE

Q3 ESG UPDATE

BAKKAFROST / Q3 2020 PRESENTATION Page 26

SUMMARY OF Q3 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG

OUTLOOK

APPENDIX

OUTLOOK

Market

• 5% increase expected in global harvest in Q4-2020
• 1% increase in global harvest expected in 2021

Farming

• In 2020, Bakkafrost expects to harvest HOG 50,000 tonnes in the Faroe Islands and HOG 39,000 tonnes in Scotland
• In 2021, Bakkafrost expects to harvest HOG 62,500 tonnes in the Faroe Islands and HOG 44,000 tonnes in Scotland
• In the Faroe Islands, Bakkafrost expects to release around 15.0 million smolts in 2020 and around 14.5 million in 2021
• In Scotland, Bakkafrost expects to release around 10.7 million smolts in 2020 and around 11.0 million in 2021

Contracts

• For 2021, contracted around 33% of expected harvest volumes in the Faroe Islands and 25% in Scotland
• Bakkafrost strategy is to allocate around 40% of expected harvested volumes at commitments and contracts at any time

Fishmeal, Oil and Feed

Feed sales are expected to be around 110,000 tonnes in 2020 and 120,000 tonnes in 2021. Fishmeal and fish oil volumes are expected to be lower than in 2019

Business development / Investment programme

• Pursuing sustainable organic growth
• For the remaining period 2020 2022 of the investment programme ~ DKK 1.8 billion will be invested in the Faroe Islands
• In Scotland, the yearly investments for 2020-2024 are expected to be around DKK 350-400 million per year

SUMMARY OF Q3 2020 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG

OUTLOOK

APPENDIX

Hatchery, Norðtoftir, Faroe Islands (S03) Under construction 12,000m3 to be in operation in 2022 - Original hatchery: Light Brown - New built 2012 – 2016: rest

SCOTLAND – STRATEGIC RATIONALE

• 1. Provides access to the attractive Scottish farming region
  2. Niche and differentiated region
  3. High quality salmon from Scottish Provenance priced at a premium
• 1. Creating a differentiated global leader in premium salmon
  2. Exposure to two geographies, Faroe Islands and Scotland
  3. Premium brands

Harris and Lewis,Scotland

SCOTLAND – STRATEGIC RATIONALE

3. Potential for significant improvement

• Scottish Salmon profitability to improve over a five-year period through transfer of best practices
• Synergies
• Targeted investment programmes
• 1. Financially attractive, acquiring the business at a reasonable value, multiple to the sector and Bakkafrost

43 farming sites / 67,023T consent

South

• 20 sites / 29,205T consent
  • Mull and Gigha, 6 sites
  • Loch Striven and Arran, 4 sites
  • Loch Fyne, 10 sites

North

• 23 sites / 37,818T consent
  • Uist, 5 sites
  • Sky & mainland, 7 sites
  • Loch Roag, 6 sites
  • East Lewis & Harris, 5 sites

FAROE ISLANDS - GROWING TO 100KT

SUPERIOR BIOLOGY COMBINED WITH STATE-OF-THE-ART INFRASTRUCTURE

	FISHMEAL, OIL AND FEED	BROODSTOCK	SMOLT	SEA WATER	PROCESSING	SALES/MARKETING
	Equivalent to 100k (tgw)	None	12 million @ 200 grams	21 farming sites/17 fjords	130k primary (tgw)	Central sales Faroes
CAPACITY	annual harvest @			55k (tgw) @100g smolt/	40k secondary (tgw)	UK sales office
2018	marine index of 44%			65k (tgw) @500g smolt	80k packaging material (tgw)	US sales office
				4 well boats & 2 FSVs		Branding
CMD	Additional 65k (tgw)	Own breeding programme	19 million @ 500 grams	Upgraded infrastructure	Selected upgrading,	Marketing/sales initiatives
ANOUNCED	annual harvest @	Full self sufficiency		Fish transportation	efficiency and functionality	Market penetration
INVESTMENTS	marine index of 44%			R&D
	Sustainable Growth	Adaptability to local biology	Sustainable growth	>100k (tgw) @ 500g smolt	Product quality	Premium price achievement
	Flexibility	Product differentiation	Reduced exposure in sea		Product presentation	Reduced spot price sensitivity
PURPOSE	Efficiency, streamlining &	Support branding strategy
	innovation	(immaterial property)			Product differentiation	Maintain low exposure to
	Environmental improvement	Less dependency of suppliers			Fresh premium product	single markets
	Food safety	Veterinary control			capability

DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN

Expected supply growth in 2021

• 3% growth in Global supply
• 5% growth in European supply
• -3% growth in supply from Americas

Global Supply of Atlantic Salmon (head on gutted - HOG)
	2017	2018	2019	2020E	2021E
Norway	1,078	1,129	1,198	1,207	1,274
UK	159	137	171	164	167
Ireland	15	13	14	14	15
Faroes	72	64	78	75	78
Total Europe	1,325	1,343	1,462	1,460	1,534
Chile	490	598	601	662	632
Canada	123	132	124	128	132
USA	20	17	19	18	16
Total Americas	633	747	744	808	781
Other	78	78	96	114	142
Total (Sold Quantity)	2,035	2,168	2,302	2,382	2,457
Supply growth - Global	2%	7%	6%	3%	3%
Supply growth - Europe	3%	1%	9%	0%	5%
Supply growth - Americas	-3%	18%	0%	9%	-3%

Salmon Markets (head on gutted - HOG)

	2017	2018	2019	2020E	2021E
EU	918	949	1,017	1,068	1,115
USA	402	436	469	508	507
Japan	57	54	53	59	59
Russia	70	89	79	74	76
Others	588	641	684	674	700
Total (Sold Quantity)	2,035	2,169	2,302	2,382	2,457

Comments:

All figures are in hog-equivalents and thousand tonnes.

Figures represents sold quantity of Atlantic Salmon from each producing country

Source: Kontali

Q3 2020 MARKET ENVIRONMENT DECREASING MARKET PRICES

Decreased market prices, compared to Q3 2019

• Significant demand disruption (Covid-19)
• Limited supply growth
• Nasdaq Norway price EUR 4.5 in Q3 2020
  • 10% down vs. Q3 2019
  • 15% down vs. Q2 2020
• Urner Barry East Coast price USD 7.6 per kg in Q3 2019
  • 6% down vs. Q3 2019
  • 10% up vs. Q2 2020

	7.0			6.3	6.4			6.6			60.0
	6.0	5.7	5.8				5.6		5.2		50.0
	5.0					5.0				4.5	40.0
R U	4.0										30.0	K K
E	3.0											D
	2.0										20.0
	1.0										10.0
	-	Q3 2018	Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	-
				Nasdaq Norway (EUR)						Nasdaq Norway (DKK)

PRICE NORWAY

MARKET CURRENCY	Q3 2020	Q3 2019	Change %
Nasdaq Norway (EUR)	4.47	4.99	-10.4 %
UB North East US 14-16lb HOG (USD per kg)	7.62	8.14	-6.3 %
DKK	Q3 2020	Q3 2019	Change %
Nasdaq Norway	33.25	37.22	-10.6 %
UB North East US 14-16lb HOG (per kg)	48.58	54.64	-11.1 %

Source: Kontali

Q3 2020 SALES PER REGION

DEVELOPMENT PER QUARTER

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2018	2019	2019	2019	2019	2020	2020	2020
622	750	964	947	996	1605	1255	1134	1123
168	231	268	339	303	415	248	182	103
356	-7	213	189	181	220	-148	472	177
7,217	12,234	13,707	12,609	12,938	17,930	10,667	12,941	11,135
					7,925	7,268	7,937	10,476
25.34	21.91	21.99	31.31	26.25	28.25	25.10	15.34	15.24
24.85	21.56	21.86	31.31	23.61	25.49	26.51	9.79	12.43
2.49	1.51	0.37	-0.01	9.23	11.72	-2.78	11.19	5.87
					3.09	5.70	5.36	-3.89
70%	70%	70%	65%	68%	65%	66%	69%	68%
286	495	522	744	-1,271	1,019	988	1,116	1,257

Revenue (mDKK)	Operational EBIT (mDKK)	Farming FO margin Op. EBIT (NOK/kg)	Farming SCT margin Op. EBIT (NOK/kg)	VAP FO margin Op. EBIT (NOK/kg)
5,000	1,600	35	35	10.00
4,000	1,400 1,200	30	30	5.00
3,000	1,000 800	25 20	25 20	0.00
2,000	600	15 10	15	-5.00
1,000	400 200	5	10 5	-10.00
0	-	0	0	-15.00

Dividend

• No dividend for 2019 because of the disruption and uncertainty caused by Covid-19

Dividend policy

• Competitive return through:
  • Dividends
  • Increase in the value of the equity
• Generally, Bakkafrost shall pay dividend to its shareholders
• A long-term goal is that 30–50% of adjusted EPS shall be paid out as dividend

Dividend per share in % of adj. EPS*

Dividend per share (DKK)***

* Adjusted EPS is EPS adjusted for fair value adjustments of biomass and onerous contracts provisions

** Dividend and acquisition of treasury shares

*** Dividend is paid out the following year

Facilities and locations

FAROE ISLANDS

• 18 islands – 1,387 km²
• 52,703 inhabitants (September 2020)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)

Key sectors (% of wage earners, M7 2020)

• Service/public admin.: ~34%
• Private service: ~31%
• Construction: ~18%
• Fish & aquaculture: ~17%
• Unemployment rate (May 2020): 1.8%
• Total working force (July 2020): 27,308
• GDP: DKK ~20.5bn (2019e)
• GDP/capita: DKK 394,000 (2019e)
  • (Norway: DKK 463,000) (2017)

Total export of fish products (2019)

DKK 8,937 million - whereof farmed fish accounts for 45%

TAXES

• Total percent of GDP: 41.8% (2016)
• Corporate tax: 18%
• Farming revenue tax: 5.0% of revenues after 1 January 2019 The tax is applied as follows (IMP ~ International market price):
  • If the IMP is above DKK 36 per kilo, the tax is 5%
  • If the IMP is between DKK 32 and DKK 36 per kilo, the tax is 2.5%
  • If the IMP is lower than DKK 32 per kilo, the tax is 0.5%

Restriction on single foreign ownership of 20% in farming companies

One company may max. control 50% of the licences in the Faroe Islands

Source: Hagstova Føroya

BAKKAFROST / Q3 2020 PRESENTATION Page 42