Bakkafrost P/f

Investor Presentation • May 5, 2020

Q1 2020

BAKKAFROST GROUPGlyvrar 5 May 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 Q1 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

HIGHLIGHTS

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

*) Including internal sales of 14,317 tonnes in Q1 2020 (13,960 tonnes in Q1 2019)

** EBITDA margin

( D K K i l l io ) m n	1 2 Q 0 2 0	1 2 Q 0 1 9
O t ing p er a re ve nu e	1, 2 5 5	9 6 4
O t io l E B I T D A p er a na	3 6 7	3 2 1
O t io l E B I T p er a na	2 4 8	2 6 8
Pr f i fo he io d t t o r p er	-1 4 8	2 1 3
O io l E B I T D A in t p er a na m ar g	2 9. 2 %	3 3. 4 %
O io l E B I T in t p er a na m ar g	1 9. 8 %	2 8 % 7.
O io l E B I T / Kg ( Fa in Fa Is la ds ) ( N O K ) t p er a na rm g ro e n	2 6. 5 1	2 1. 8 6
O io l E B I T / Kg ( Fa in Fa Is la ds d V A P ) ( N O K ) t p er a na rm g ro e n a n	2 5. 1 0	2 1. 9 9
O io l E B I T / Kg ( V A P ) ( N O K ) t p er a na	-2 7 8	0. 3 7
O t io l E B I T / Kg ( Fa in Sc t la d ) ( N O K ) p er a na rm g o n	5. 7 0	N / A
E B I T D A in ( F is hm l, -O i l a d Fe d ) m ar g ea n e	1 3. 0 %	2 3. 0 %

Group Operational EBIT was DKK 248 million in Q1 2020, compared to DKK 268 million in Q1 2019

SUMMARY OF Q1 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

MARKETS & SALESSALES TO WESTERN EUROPE DECREASED – OTHER MARKETS INCREASED

(Q1 2020)

l les f s lm by To ta s a o a on ke lue		Q 2 0 2 0 1			Q 2 0 9 1 1
( ) by ts m ar va	O F	S C T	l To ta	O F	S C T	l To ta
W Eu te es rn ro p e	2 % 5	9 % 1	6 % 7	0 % 5	/ N A	0 % 5
h ica No Am t r er	2 8 %	% 1	8 % 1	2 3 %	/ N A	2 3 %
ia As	1 % 4	% 5	1 0 %	2 % 4	/ N A	2 % 4
Ea Eu te s rn ro p e	6 %	0 %	4 %	3 %	/ A N	3 %
f w l d Re t s o or	0 %	3 %	1 %	0 %	/ N A	0 %
l To ta	1 0 0 %	1 0 0 %	1 0 0 %	1 0 0 %	/ N A	1 0 0 %
h lm ly by Fr es sa on on	Q 1 2 0 2 0 Q 1 2 0 1 9

Q 1 2 0 2 0			Q 1 2 0 1 9
F O	S C T	l To ta	F O	S C	l T To ta
2 1 %	9 1 %	5 9 %	2 8 %	/ N A	2 8 %
4 8 %	1 %	2 2 %	3 1 %	/ N A	3 1 %
2 1 %	5 %	1 2 %	3 7 %	/ N A	3 7 %
1 0 %	0 %	5 %	4 %	/ N A	4 %
% 0	% 3	% 2	% 0	/ N A	% 0
% 1 0 0	% 1 0 0	% 1 0 0	% 1 0 0	/ N A	% 1 0 0

Contract share FO, VAP products [% of qty]

VAP on contractHOG, Spot

(Q1 2019)

GLOBAL MARKETSHIGHER PRICES AND GROWTH IN GLOBAL HARVEST

Average spot prices increased in Q1 2020 (NOK/KG)

Spot prices decreased significantly by the end of the quarter (mainly a Covid-19 effect)

Global harvest grew 3% y/y

FX: NOK weakened 25% during Q1 2020

Spot prices (NASDAQ) on superior 4-5 [NOK/kg HOG] Q1 Q2 Q3 Q4

Change in global market harvest and market price

Global:2.3% growth in harvest in Q1 2020

• Europe: 1.9% decline in harvest
• Norway 1.5% harvest growth
• UK 17.1% decline in harvest
  • Lower harvest weights & reduced numbers
• Americas: 8.2% harvest growth
• Chile harvest growth 8.6%
• Other: 20.5% harvest growth

Ha t & Su ly De lo t rv es p p ve p m en S U P P L Y D E V E L O P M E N T [ He d On Gu t te d 1, 0 0 0 ton ] a ne s	Q 1 2 0 2 0 Q 1 2 0 2 0	Q 1 2 0 1 9 Q 1 2 0 1 9	C ha % ng e C h % a n g e
N o rw a y	2 7 0	2 6 7	1. 5 %
U K	3 1	3 7	1 1 % 7. -
F a r o e s	1 6	2 0	2 0. 6 % -
I l d c e a n	8	6	2 7. 3 %
I l d r e a n	2	3	4 2. 1 % -
T l Eu t o a r o p e	3 2 7	3 3 3	1. 9 % -
C h i l e	1 6 9	1 6 5	8. 6 %
C d a n a a	2 8	2 7	3. 0 %
U S A	5	4	2 8. 2 %
T t l A i o a m e r c a s	2 0 1	1 8 6	8. 2 %
O h t e r	2 0	1 6	2 0. 5 %
T l ( H d i ) t t t t o a a rv e s e q u a n y	5 4 7	5 3 5	2. 3 %
I t t nv e n o ry m o e m e n s v	9 -	1	8 4 8. 8 % -
T t l ( S l d Q t i t ) o a o u a n y	5 3 9	5 3 6	0. 4 %

Global: 0.4% more absorbed by the market in Q1 2020

• EU – Growth despite quarterly drop in European harvest
• USA – Growth significantly below American quarterly harvest
• Russia – Another strong quarter
• Significant drop in many Asian markets
• Covid-19 main driver

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

	Est im ate d v	olu me s	Q 1 c om pa	ris on	Es tim ate	d v olu me s	FY co mp ar	iso n
Ma rke ts	Q 1 2 0 20 E	Q 1 2 0 19	Vo lum e	%	FY 20 19	FY 20 18	Vo lum e	%
EU	22 7, 40 0	22 2, 70 0	4, 70 0	2%	1, 0 12 40 0 ,	95 0, 9 0 0	6 1, 5 0 0	6 %
U SA	12 1, 40 0	11 40 0 5,	6, 0 0 0	% 5	46 6 0 0 7,	43 0 0 0 5,	3 2, 6 0 0	7%
Ru ia ss	17 70 0 ,	16 3 0 0 ,	1, 40 0	9 %	78 6 0 0 ,	8 9, 40 0	-10 8 0 0 ,	-12 %
Ja pa n	13 3 0 0 ,	13 40 0 ,	-10 0	-1%	5 3, 20 0	54 0 0 0 ,	-8 0 0	-1%
Gr ter C hin ea a	26 0 0 0 ,	34 5 0 0 ,	-8, 5 0 0	-25 %	13 5, 70 0	12 2, 8 0 0	12 9 0 0 ,	11 %
AS EA N	17 5 0 0 ,	18 70 0 ,	-1, 20 0	% -6	72 5 0 0 ,	71 6 0 0 ,	9 0 0	1%
Lat in A ric me a	41 9 0 0 ,	43 0 0 0 ,	-1, 10 0	-3 %	16 3, 6 0 0	15 2, 0 0 5	11 10 0 ,	7%
Uk rai ne	4, 20 0	4, 70 0	-5 0 0	-11 %	20 5 0 0 ,	15 9 0 0 ,	4, 6 0 0	29 %
Ot he ark ets r m	6 9, 3 0 0	67 70 0 ,	1, 6 0 0	2%	29 2, 70 0	27 8, 40 0	14 3 0 0 ,	5 %
To tal al l m ark ets	3 8, 70 0 5	3 6, 40 0 5	2, 3 0 0	0. 4 %	2, 29 6, 8 0 0	2, 17 0, 0 0 5	12 6, 3 0 0	8 % 5.

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) Allfigures above are in tonnes hog, and are rounded to the nearest 100 tonnes.

SHORT TERM SUPPLY OUTLOOK

• Expectation of low single digit global supply growth
• Europe – Moderate growth
• Americas – Moderate growth – Some volatility
• Outlook for modest longer term supply growth intact

Source: Kontali

SUMMARY OF Q1 2020 MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

FARMING – HARVEST VOLUMELOWER HARVEST VOLUMES IN THE FAROE ISLANDS – INCREASED SMOLT TRANSFER

Average harvest weight (kg)

Smolt transfer (million pcs)

Avg. seawater temperatures, Faroe Islands (oC)

Ha t Vo lu to [ H O G ] rv es m es nn es	Q 1 2 0 2 0	Q 1 2 0 1 9
O F No t h Re io r g n -	6, 2 6 5	6, 7 4 3
O F W t Re io es g n -	2, 6 9 7	6, 9 6 4
F O So h Re io t u g n -	1, 6 3 3	0
F O To l ta –	1 0, 6 6 7	1 3, 7 0 7
S C T	7, 2 6 8	N / A
To ta l ( F O & S C T )	1 7, 9 3 5	1 3, 7 0 7

Seawater Temperatures at 18m depth in the Faroe Islands

FARMING – OPERATIONAL PERFORMANCE

OPERATIONAL EBIT MARGIN INCREASED IN THE FAROE ISLANDS

Faroe Islands (FO)

Operational EBIT (mDKK)

Scotland (SCT)

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

Skálafjørður, Faroe Islands View from Bakkafrost's Headquarters

Fa in F O ( D K K i l l io ) rm g m n	1 2 Q 0 2 0	1 2 Q 0 1 9
O t ing p er a re ve nu e	6 3 3	7 5 5
O io l E B I T t p er a na	2 0 3	2 3 0
O t io l E B I T in p er a na m ar g	3 2 %	3 0 %

Fa in S C T ( D K K i l l io ) rm g m n	1 2 Q 0 2 0	1 2 Q 0 1 9
O ing t p er a re ve nu e	4 1 2	N / A
O t io l E B I T p er a na	3 0	N / A
O t io l E B I T in p er a na m ar g	% 7	/ N A

FARMING – OPERATIONAL PERFORMANCE

EBIT/KG IN THE FAROE ISLANDS DOWN 3.07 NOK/KG BY LOSSES FROM STORM

Average weights (HOG):

F O ( N h ) t o r :	4. 9 1 k g
F O ( W ) t e s :	2 6 k 5. g
O ( S ) F t h o u :	6. 5 2 k g
S C T :	4. 0 0 k g

The biological performance was very good in the quarter, good growth and low mortality rate, but was negatively affected by severe storm.

During Q1, the market conditions deteriorated with lower market prices and negative FX-effect.

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

( N O K / k ) g	Q 1 2 0 2 0
	F O				S C T
	No h t r	W t es	So h t u	To l ta	To l ta
O t i l E B I T / k p e r a o n a g g w	1 7. 9 4	3 8. 8 5	3 8. 4 7	2 6. 5 1	5. 7 0

VALUE ADDED PRODUCTS (VAP) HIGHER VOLUMES AT HIGHER RAW MATERIAL PRICES

( D K K i l l io ) m n	Q 1 2 0 2 0	Q 1 2 0 1 9
O ing t p er a re ve nu e	2 4 7	2 6 1
O io l E B I T t p er a na	-1 1	1
O io l E B I T in t p er a na m ar g	-4 %	1 %
( ) V A P du d lu tg p ro ce vo m es w	5, 4 0 8	4, 6 8 9

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

fishery and sourcing of raw material for Havsbrún

( D K K i l l io ) m n	1 2 Q 0 2 0	1 2 Q 0 1 9
O ing t p er a re ve nu e	3 1 0	2 8 3
E B I T D A	4 0	6 5
E B I T D A in m ar g	1 3. 0 %	2 3. 0 %
Fe d l d ( to ) * e so nn es	1 9, 1 2 3	1 6, 2 6 4
F is hm l s l d l ( ) te to ea o ex rn a nn es	1 1, 2 7 7	9, 9 8 7

* Including internal sales FO, corresponding to 75% of feed volumes in Q1 2020 (Q1 2019: 86%)

Sourcing of raw material (tonnes)

Total feed sales increased (tonnes)

19,123 (Q1 2020) 16,264 (Q1 2019) 18%

External feed sale increased (tonnes)

4,806 (Q1 2020) 2,304 (Q1 2019) 109%

Market fluctuations

Both fishmeal and fish oil prices increased in Q1 2020, compared to previous quarter

Volumes of raw material purchase and feed sale [tonnes]

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

Source: Holtermann

SUMMARY OF Q1 2020

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

( ) D K K i l l io m n	1 2 Q 0 2 0	1 2 Q 0 1 9
O ing t p er a re ve nu e	1, 2 5 5	9 6 4
O t io l E B I T D A * p er a na	3 6 7	3 2 1
O * t io l E B I T p er a na	2 4 8	2 6 8
Fa ir lue d j f b io log ica l a tm t o ts va a us en ss e	-4 1 1	1 8
O tra ts ne ro us c on c	0	0
fro In ia te co m e m as so c s	0	7
Re ta ve nu e x	-1 9	3 2 -
E B I T	-1 8 2	2 6 1
Ne t F ina ia l i te nc m s	1	1 -
E B T	-1 8 1	2 9 5
Ta xe s	3 3	4 6 -
Pr f i t fo t he io d o r p er	-1 4 8	2 1 3
O t io l E B I T D A in p er a na m ar g	2 9. 2 %	3 3. 4 %
O t io l E B I T in p er a na m ar g	% 1 9. 8	% 2 7. 8
O / ( ) ( O ) t io l E B I T kg Fa in Fa Is la ds d V A P N K p er a na rm g ro e n a n	2 1 0 5.	2 1. 9 9
( f fe ) E B I T D A in is hm l, i l a d d m ar g ea o n e	1 3. 0 %	2 3. 0 %

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

OPERATIONAL EBIT* AND EARNINGS PER SHARE

Operational EBIT* (mDKK)

Earnings per share (DKK)

1,165 1,378 1,075 1,325

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

248

BALANCE SHEET

( D K K i l l io ) m n	Q 1 2 0 2 0	En d 2 0 1 9
In ta i b le ts ng as se	4, 3 8 6	4, 3 9 6
Pr ty la t a d ip t op er p n n eq m en u ,	3, 7 6 3	3, 7 8 0
R ig h f u t o ts se a ss e	4 8 0	3 3 3
F ina ia l a ts nc ss e	1 1 9	1 1 9
Lo -te iva b les ng rm re ce	4	4
De fe d ta ts rre x as se	3 8	3 8
B io log ica l a ts ss e	1, 4 9 2	1, 9 0 2
Inv to en ry	5 2 4	5 4 9
Re iva b les ce	6 2 9	6 2 6
O t he iva b les r r ec e	2 3	4 6
Ca h d h iva le ts s an ca s eq u n	8 0 1	1, 3 1 0
To ta l As ts se	1 2, 2 6 0	1 3, 1 0 1
Eq i ty u	8, 1 2 9	8, 4 9 7
De fe d ta d t he ta rre x an o r xe s	1, 0 9 7	1, 1 2 4
Lo -te in te t- be ing de b t ng rm re s ar	1, 7 9 0	2, 3 2 8
Lo -te lea ing de b t ng rm s	2 6 1	2 2 6
F ina ia l de iva ive t nc r s	1 5	1 5
S ho t- te lea ing de b t r rm s	2 0 1	1 0 8
Ac ts d t he b les co un an o r p ay a	7 6 6	8 0 4
To ta l Eq i ty d L ia b i l i t ie a n s u	1 2, 2 6 0	1 3, 1 0 1

CASH FLOW

( D K K i l l io ) m n	1 2 Q 0 2 0	1 2 Q 0 1 9
Ca h f low fro io t s m o p er a ns	3 6 5	7 7
Ca h f low fro inv tm ts s m es en	-1 0 1	1 0 6 -
Ca f fro f h low ina ing s m nc	-7 7 2	5 4
Ne ha in h t c ng e ca s	0 8 -5	2 5
Ca h he d f he io d t t t s a e n o p er	8 0 1	3 4 2
Un dr fa i l i t ies aw n c	2, 4 6 5	9 7 1

NET INTEREST-BEARING DEBT (NIBD) NIBD IN Q1 2020 AROUND SAME LEVEL AS IN Q4 2019

NIBD was increased by:

• Net investments (mDKK 101)
• Acquisition of minorities (mDKK 168)

NIBD was decreased by:

• Cash flow, operating activities (mDKK -280)
• Cash flow, working capital (mDKK -19)

Financing end Q1 2020

• NIBD: DKK 988 million
• Bank facilities of EUR 352 and GBP 100 million
• Undrawn credit facilities: DKK 2,465 million

Development in NIBD in DKK millions

NIBD and available funding

SUMMARY OF Q1 2020 MARKETS AND SALESSEGMENT INFORMATIONFINANCIALS & ESG

APPENDIX

Market

• Global harvest in Q1 2020 increased around 2.3%, compared to Q1 2019
• Global harvest in Q2 2020 is expected to increase around 2-4%, compared to Q2 2019
• Global harvest growth 2020 is expected to be around 2-4%, compared to 2019

Farming

• In 2020, Bakkafrost expects to harvest 50,000 tonnes HOG in the Faroe Islands and 39,000 tonnes HOG in Scotland
• Bakkafrost expects to release 15.0 million smolts in 2020 in the Faroe Islands, compared to 12.7 million smolts in 2019 and 12.6 million smolts in 2018
• The smolt release in Scotland is expected to be 10.7 million smolts in 2020, compared to 12.4 million smolts in 2019 and 8.6 million smolts in 2018

VAP

• Contracted around 47% of expected Q2 2020 harvest volume and 40% of the harvest volume in the Faroe Islands for 2020
• Long-term strategy is to sell 40-50% of the harvested volumes in the Faroe Islands at fixed price contracts

Fishmeal, Oil and Feed

Feed sales are expected to be around 110,000 tonnes in 2020. Fishmeal and 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 350 mDKK per year

SUMMARY OF Q1 2020 MARKETS AND SALESSEGMENT INFORMATIONFINANCIALS & ESG

OUTLOOK

APPENDIX

ENTERING SCOTLAND

Strategic rationale

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

ENTERING SCOTLAND

Strategic rationale

• 1. 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

SCOTLAND SITE OVERVIEW

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

DEVELOPMENT IN HARVESTED AND SOLD QUANTITY BY ORIGIN

Expected supply growth in 2020

• 4% growth in Global supply
• 2% growth in European supply
• 6% growth in supply from Americas

Global Supply of Atlantic Salmon (head on gutted - HOG) 2016 2017 2018 2019E 2020ENorway 1.055 1.078 1.129 1.198 1.238 UK 142 159 138 165 164Ireland 14 15 13 14 13Faroes 71 72 64 78 75Total Europe 1.281 1.325 1.344 1.455 1.490 Chile 503 490 598 601 649Canada 131 123 132 124 124USA 20 20 17 19 18Total Americas 655 633 747 744 791Other 62 78 79 98 119Total (Sold Quantity) 1.998 2.035 2.170 2.297 2.400 Supply growth - Global ‐4% 2% 7% 6% 4% Supply growth - Europe ‐5% 3% 1% 8% 2% Supply growth - Americas ‐2% ‐3% 18% 0% 6%

Comments:All figures are in hog‐equivalents and thousand tonnes. Figures represents sold quantity of Atlantic Salmon from each producing country USARussiaOthers

Source: Kontali

Salmon Markets (head on gutted - HOG)

	2 0 1 6	2 0 1 7	2 0 1 8 E	2 0 1 9 E	2 0 2 0 E
E U	9 3 7	9 1 8	9 1 5	1. 0 1 2	1. 0 5 7
U S A	3 8 5	4 0 2	4 3 5	4 6 8	4 8 8
Ja p an	5 9	5 8	5 4	5 3	5 4
Ru ia ss	6 8	7 0	8 9	7 9	8 5
he O t rs	5 4 9	5 8 8	6 4 1	6 8 5	7 1 6
To ta l ( So l d Qu t i ty ) an	1. 9 9 8	2. 0 3 5	2. 1 7 1	2. 2 9 7	2. 4 0 0

Q1 2020 MARKET ENVIRONMENT HIGHER MARKET PRICES, COMPARED TO Q1 2019

• Increased market prices compared to Q1 2019
• Nasdaq Norway price EUR 6.6 in Q1 2020
• 4% up vs. Q1 2019
• 18% up vs. Q4 2019
• Urner Barry East Coast price USD 9.3 per kg in Q1 2020
• COMMENT
  • 4% up vs. Q1 2019
  • 19% up vs. Q4 2019
• Covid-19 related issues led to significant drop towards the end of the quarter

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

PRICE NORWAY

Source: Kontali

GROWING TO 100KTSUPERIOR BIOLOGY COMBINED WITH STATE OF THE ART INFRASTRUCTURE

	F I S H M E A L, O I L A N D F E E D	B R O O D S T O C K	S M O L T	S E A W A T E R	P R O C E S S I N G	/ S A L E S M A R K E T I N G
	uiv len k ( ) Eq 10 0 t t tgw a o	No ne	mi l lio @ 12 20 0 g n ram s	/ far mi sit fjo ds 21 17 ng es r	k p rim ( ) 13 0 tgw ary	l sa les Ce Far ntr a oe s
C C A P A I T Y	l ha @ st an nu a rve			/ k ( ) lt 55 @ 10 0g tgw sm o	k s da ( ) 40 tgw eco n ry	les f fic UK sa o e
2 0 1 8	de f rin in 44 % ma e x o			k ( ) lt 65 @ 50 0g tgw sm o	k p kag l ( ) 80 ing ia ter tgw ac ma	les f fic US sa o e
				l l bo & 4 2 FSV ats w e s		din Br an g
C M D	d dit l k ( ) A ion 65 tgw a	bre din Ow n e g p rog ram me	l lio 19 mi @ 50 0 g n ram s	de d fra Up in str uct gra ure	lec d u din Se te pg ra g,	/sa ket les Ma ing init iat ive r s
A N O U N C E D	l ha @ st an nu a rve	l l se l f s f fic Fu ien u cy		h t Fis tio rta ran spo n	f fic d fun lity ien cti e cy an on a	ket Ma tio tra r pe ne n
I N V E S T M E N T S	de f rin in 44 % ma e x o			&D R
	b le h Su ina Gr sta t ow	da bi lity loc l bio log A ta to p a y	b le g h Su ina sta t row	k ( ) lt >7 6 @ 50 0g tgw sm o	du lity Pro ct qu a	hie Pre mi ice nt um pr ac ve me
	lex bi lity F i	du di f fer Pro tia tio ct en n	du d e Re in ce xp os ure sea		du Pro ion ct tat pre sen	du d s Re ric sit ivit t p ce po e s en y
P U R P O S E	f fic E ien lin ing & str cy, ea m	Su bra din ort tra teg pp n g s y
	inn ati ov on	( ) im ia l p ter ert ma rop y			f fer Pro du di tia tio ct en n	Ma int ain low to ex po su re
	vir l im En nta nt on me pro ve me	de de f s lie Le ss pe n ncy o up p rs			h p ium du Fre ct s rem pro	sin le ket g ma r s
	d fet Fo o s a y	ina l Ve ter ntr ry co o			bi lity ca pa

DEVELOPMENT PER QUARTER

	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4	Q 1
( D K K ) m	20 18	20 18	20 18	20 18	20 19	20 19	20 19	20 19	20 20
Re ve nu e	8 1 5	9 5 4	6 2 2	0 7 5	9 6 4	9 4 7	9 9 6	1 6 0 5	1 2 5 5
Op t ion l E B I T er a a	2 6 8	4 0 8	1 6 8	2 3 1	2 6 8	3 3 9	3 0 3	4 1 5	2 4 8
Pr f i / Lo t o ss	2 7 2	3 3 9	3 5 6	7 -	2 1 3	1 8 9	1 8 1	2 2 0	1 4 8 -
Ha t F O ( tg ) rve s w	1 2, 2 3 8	1 2, 9 0 2	7, 2 1 7	1 2, 2 3 4	1 3, 7 0 7	1 2, 6 0 9	1 2, 9 3 8	1 7, 9 3 0	1 0, 6 6 7
S C ( ) Ha t T tg rve s w								7, 9 2 5	7, 2 6 8
Op E B I T Fa ing F O & V A P ( N O K / kg ) rm	2 2. 9 2	3 4 1 7.	2 3 4 5.	2 1. 9 1	2 1. 9 9	3 1. 3 1	2 6. 2 5	2 8. 2 5	2 1 0 5.
Op O ( O / ) E B I T Fa ing F N K kg rm	2 4. 1 5	3 9. 0 9	2 4. 8 5	2 1. 5 6	2 1. 8 6	3 1. 3 1	2 3. 6 1	2 5. 4 9	2 6. 5 1
Op E B I T V A P ( N O K / kg )	1 0 -7	1 1. 0 0 -	2. 4 9	1. 1 5	0. 3 7	0. 0 1 -	9. 2 3	1 1. 2 7	2. 8 7 -
Op E B I T Fa ing S C T ( N O K / kg ) rm								3. 0 9	5. 7 0
Eq i io ty t ra u	% 6 9	% 6 8	% 7 0	% 7 0	% 7 0	% 6 5	% 6 8	% 6 5	% 6 6
N I B D	1 0 2	4 4 3	2 8 6	4 9 5	5 2 2	7 4 4	1, 2 7 1 -	1, 0 1 9	9 8 8

01.0002.0003.0004.0005.0002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dividend

• Dividend for 2019 - decision postponed until August 2020 because of the disruption 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

• * 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

Dividend per share in % of adj. EPS* 99%19%40%49%** 49% 46% 50% 50% 50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividend per share (DKK)***

FAROE ISLANDS

• 18 islands – 1,387 km²
• 52,337 inhabitants (March 2020)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)

Key sectors (% of wage earners, M9 2019)

• Service/public admin.: ~34%
• Private service: ~31%
• Construction: ~16%
• Fish & aquaculture: ~19%
• Unemployment rate (July 2019): 1.3%
• Total working force (July 2019): 28,147
• 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 licences in the Faroe Islands

Source: Hagstova Føroya

BAKKAFROST / Q1 2020 PRESENTATION

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