Bakkafrost P/f — Investor Presentation 2021

Sep 14, 2021

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day

Faroe Islands 14 September 2021

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.

GROWING SUSTAINABLY

4th Annual Sustainability Report is available on our website

WHAT IS HEALTHY SALMON?

Good health is maintained when:

• The salmon is robust
• Environment is optimal and threats mitigated
• Biological threats are well controlled

Salmon farming is about being in control of biology in a difficult environment

• Key success factors
• A sustainable, well organised, value chain
• Management of external risks through trust and cooperation

Bakkafrost has an excellent track record in the Faroes

Embarked on a journey to structurally strengthen Scotland

Yield per smolt (2020) Source: Kontali, Bakkafrost 2,50 3,00 3,50 4,00 4,50 5,00 Norway Bakkafrost Kg (HOG)

Bakkafrost has adopted an integrated value chain in the Faroe Islands, strengthening factors under own control

Bakkafrost has reduced reliance on third party contracts

• Flexibility to adapt to ever changing circumstances
• Outweighs short term benefits from outsourcing
• Increasing economies of scale within Bakkafrost

FAROE ISLANDS – FACTORS UNDER OWN CONTROL GENETICS – ORIGIN BASED BROODSTOCK PROGRAMME

Bakkafrost owns the Intellectual Rights of two origin-based salmon strains:

Benefits

• Better control and more predictable
• Select salmon families better adapted to the local environment and resistance to disease
• Shorter learning cycles and rapid advancements due to integrated broodstock programme
• Avoid reliance on a consolidated group of third party suppliers

Bakkafrost will be self-sufficient with roe in 2024

FAROE ISLANDS – FACTORS UNDER OWN CONTROL SMOLT QUALITY AND SIZE

• Seawater phase is the most risky part of salmon farming
• Smolt size and quality is instrumental in managing risks
• Large developments over 10 years with industrialised recirculation plants to optimise control of biology
• Plan to reach average smolt size of 500g in 2022
• Successful development of state of the art hatcheries

Average weight and number of released smolt

FAROE ISLANDS – FACTORS UNDER OWN CONTROL EXPERIENCE FROM HARVESTED FISH FROM LARGE SMOLT

• Hatchery at Strond produces high quality and large size smolt
• Large smolts grow strongly after release
• Very low feed conversion rate

bFCR FCR (Salmon from large smolt at Strond)

FAROE ISLANDS – FACTORS UNDER OWN CONTROL NATURAL MARINE BASED FEED

Salmon has its natural place in the food chain

• In house, tailored feed production to optimise diet
• Conversion of locally caught, non-edible marine recourse
• Mix with plant-based ingredients
• Strong ties between diet and fish health

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Holtermann Marine oil inclusion Marine protein inclusion Non-marine inclusion

Development of feed recipes - Norway

0%

Source: Holtermann, Bakkafrost 11

FAROE ISLANDS – FACTORS UNDER OWN CONTROL 4.1BN DKK OF INVESTMENT MADE IN STATE-OF-THE ART VALUE CHAIN PAST 8 YEARS

Past investments:

• Hatcheries RAS and advanced vaccination technology
• Farming equipment Heavy-duty and "weather-resistant"
• Fleet of FSV's Non-chemical delousing and net-cleaning
• Wellboat Gentle live fish transport & FW treatments
• Feeding systems Technologically advanced
• Digitalisation Continuous monitoring fish welfare
• Bakkafrost's high-quality assets has a positive impact on fish welfare

4.1bn DKK invested past 8 years 400 500 600 700 800 Investments (mDKK)

FAROE ISLANDS – FACTORS UNDER OWN CONTROL SEAWATER PRACTICES AND ASSETS

Marine farming staff are guardians against most external threats

• Fish welfare is the primary focus

High focus on having competent, trained staff with short decision lines

• Sharing culture and common systems

Marine farming staff is equipped with advanced technology

• Modern and robust seawater equipment
• Modern well boats and farming service vessels (FSV)
• o Gentle and protected live fish transport
• o Net cleaning, non-chemical delousing and emergency handling

Structure of production zones

• Well adapted regulatory framework
• Few players to agree on coordination
• Largely segregated production areas
• Autonomy to adjust production cycles/fallowing periods

Licenses

• Licenses give right to utilize given area of fjords for farming fish
• No MAB, but strict regulative measures on farming activity maintaining environmental sustainability

Benefits

External risks efficiently mitigated

SCOTLAND – RELIANCE ON THIRD PARTY MORE CHALLENGING EXTERNAL ENVIRONMENT

• Generally tougher biology
• Reduced flexibility to optimise site locations
• More reliance on third party suppliers
• More players and higher exposure to the neighbours

Not own control	Level of control	Own control
Site flexibility
Site consolidation
	Coordinated use of large smolt
	Zone coordination/treatment sequencing
	Zone fallowing
	Site swaps
	Suppliers

SCOTLAND KEY INDICATORS OF WEAK PERFORMANCE

• Key indicators show poor efficiency
• Harvested kg per smolt released (yield per smolt)
• High mortality and low harvest weight
• Low ability to convert feed to flesh
• Cleary illustrated by lagging growth track

Yield per smolt (2020)

SCOTLAND - WEAK PERFORMANCE IN THE PAST ROOT CAUSES

Reduced Ability to Manage Biological Threats

• Limited vessel capacity
• Non-medicinal treatment
• Gentle seawater transportation
• Obsolete / under-capacity seawater equipment
• Fragmented smolt production in obsolete plants
• Low quality smolt of around <80g
• Challenging external environment
• Large reliance on third parties
• Poor zone management and limited industry co-ordination

Previously outweighed by biological threats

SCOTLAND – INITIAL STEPS SEAWATER ASSETS, FEED STRATEGY & BEST PRACTICE

Seawater assets were largely underinvested

• Upgrades made to feeding systems
• Feed strategy updated and best practice implemented
• Farming equipment upgraded, e.g:
• Predator-safe nets
• Aeration diffuser systems in pens
• State of the art technology implemented to ensure optimal monitoring of biomass and fish health
• Safety systems allowing staff on site in harsh conditions

Gradual improvements to main KPI's

Biological incidents require rapid treatment or transfers

Limited capacity has been available

• Ample capacity is being made available
• Wellboat with freshwater treatment capability
• FSV with advanced delousing equipment
• Mitigation of an uninsurable risks
• Benefits far outweighs vessels costs

Getting control of the biological risks

SCOTLAND – LARGE SMOLT WILL BE A GAME CHANGER LARGE SMOLT WILL TRANSFORM THE PERFORMANCE

Seawater exposure highest during summer/early autumn

Exposed fish are weakened leading to cumulative mortality

• Large smolt reduces seawater exposure to
• ~12 months ("one summer" cycles)
• New hatcheries supply consistent high quality smolt
• Triggers volume growth (shorter high production cycles per site)

Reducing and significantly outweighing the risk

SCOTLAND – LARGE SMOLT WILL BE A GAME CHANGER REDUCED BIOLOGICAL RISK, ALLOWING FOR "ONE SUMMER" CYCLES

Key benefits:

• Reduce biological risk (in Scotland the salmon will only be exposed to one summer/early autumn)
• Increase production efficiency
• Enable organic growth

Summer/Autumn Risk

SCOTLAND – IMPROVE EXTERNAL FACTORS STRENGTHEN CONTROL REDUCING EXPOSURE TO EXTERNAL FACTORS

Stakeholder Engagement / Collaboration Achieving Control

• Reduce third party reliance
• Value chain investments deliver integrated business model
• Site development & consolidation (larger sites)
• Move framework in direction of Faroese farming model
• "One loch, one operator, one generation"
• Contribute to industry "acting as one"
• Priorities versus regulators
• Promote sustainable framework and geographic segregation

• Movement of sites from shallow to more exposed waters

• Comprehensive programme for improvement

• Overall focus on improved animal welfare and performance
• Competent organisation to execute programme
• Largely replication of successful investments and activities in the Faroe Islands

When to expect effect?

• Continue to strengthen performance in the Faroes and transformational improvements on main KPI's in Scotland with 500g smolt
• bFCR <1.05 in the Faroes and <1.10 in Scotland
• Salmon survival rate >94% in the Faroes and >92% in Scotland
• Yield per smolt >4.1 for the Group
• Develop solid integrated value chain for Scottish operation
• Increase degree of control of own operation
• Implement best practice processes
• Successfully execute comprehensive investment programme
• Contribute to industry action "as one"

HEALTHY SALMON = HEALTHY BUSINESS VALUE CREATION THROUGH GROWTH AND MARGIN IMPROVEMENT

• Valuations closely tied to relative profitability per kg
• Healthy salmon drives most performance indicators
• Strong track record in the Faroe Island
• Robust plan for material improvements in Scotland
• Capacity to grow more than 40% next five years without need for additional licences/off-shore

PROFITABILITY EBIT PER KG COMPARISON

Operational EBIT/kg, NOK (2020) -5,00 0,00 5,00 10,00 15,00 20,00 SSC Norway Bakkafrost NOK per kg (HOG)

Source: Kontali, Bakkafrost

• Outstanding performance in the Faroe Islands
• Robust plan for material improvements in Scotland
• Natural target to be most profitable player in Scotland
• Gradual improvement, larger step expected in 4-5 years
  • Upon harvest from larger smolt

Realised prices/kg, NOK (2020)

Source: Kontali, Bakkafrost

COST PERFORMANCE ROBUST PLAN FOR MATERIAL IMPROVEMENTS IN SCOTLAND

• Faroes carrying cost of value chain dimensioned for 100k tonnes

• Fixed cost dilution expected in line with growth

• Very high costs in Scotland

• Business plan impacts Scotland in three stages
• Feed, seawater equipment and vessels (short horizon)
• Improved practices (medium horizon)
• Structural investments in lager smolt (4-5 year horizon)
• Largest impact expected from larger smolt strategy

Note: Depreciation of seawater activities only 28

PRICE ACHIEVEMENT RELATIVE TO MARKET MARKET CRITERIA

• Large sized fish short in supply
• Faroes and Scotland preferred niche origins
• Natural diet healthy salmon healthy products
• Alignment between sustainability and healthy salmon
• High control of value chain
• Control of food safety standards and traceability
• ESG certifications entry card to high end segments
• Aquaculture stewardship council (ASC)
• Best Aquaculture Practices (BAP)

Healthy salmon appreciated by the high end market!

PRICE ACHIEVEMENT RELATIVE TO MARKET STRONG TRACK RECORD

• Larger fish obtain price premium
• Brand premium
• Driven by ability to meet market criteria
• Downgraded fish sold at discount
• Mitigated by in house secondary processing (VAP)
• Low secondary processing capability in Scotland

Comparison – Price 2020

Source: Kontali, Bakkafrost Source: Kontali, Bakkafrost ³⁰

PRICE ACHIEVEMENT RELATIVE TO MARKET SIZE AND NUTRITION

• Price of salmon generally increase with size
• A natural diet major contributor to obtaining large salmon
• Faroes has long history of high harvest weights
• Harvest weights in Scotland have been low
• Business plan target higher average harvest weights
• Scotland starting to benefit from in house feed
• The healthy salmon diet also converts into a healthy product

Source: Sjømatdatabasen, Bakkafrost

Size distribution and price, 2020

Omega 3/Omega 6 ratio consumer portion - 2020

Source: Sjømatdatabasen, Bakkafrost

PRICE ACHIEVEMENT RELATIVE TO MARKET "BRAND PREMIUM" – TICKING ALL THE BOXES

FAROE ISLANDS

• Bakka Salmon by Bakkafrost (B2B)
• Heimland by Bakkafrost (B2C)
• 18 Islands by Bakkafrost (luxury B2C)

SCOTLAND

• Native Hebridean by Bakkafrost (luxury B2C)
• Lochlander by Bakkafrost (Luxury B2C)
• Scottish Salmon Company by Bakkafrost (B2B)

PRICE ACHIEVEMENT RELATIVE TO MARKET "BRAND PREMIUM" SUPPORTED BY CONSUMER PRODUCTS

Faroe Islands – Harvest allocation, 2020

HOG VAP

Scotland – Harvest allocation, 2020

HOG VAP

MARKET OUTLOOK KONTALI PREDICTS LIMITED SUPPLY – IMPLIES TIGHT MARKET

Faroe Islands

• Higher turnover of existing licence through larger smolt

Scotland

• Part of current licence portfolio is not fully utilised
• Mitigation of biological challenges to allow utilisation
• Improved equipment, systems and practices
• Availability of larger smolt shortening cycle
• Will enable "one summer" strategy

No requirement for new licence capacity

Growth estimates (HOG ktonnes)

GROWTH - NEW PRODUCTION METHODS DEVELOPING

MODERATE SUPPLY IMPACT EXPECTED DUE TO LOWER RETURNS FROM INCREMENTAL CAPACITY

• Industry facing supply constraints using conventional methods
• New, capital intensive, developments being tested
• Government support through licence system in Norway
• No obvious first mover advantage for Bakkafrost
• Large unutilised conventional growth potential
• Capital intensive technologies not yet proven
• No access to subsidised trials
• Focus to identify attractive growth track beyond 2026
• Acceptable capital requirement and added costs
• Sustainability

Total marginal investment Assumed marginal EBIT Implied marginal return

Note: See assumptions, sources etc. in New Technology chapter

Bakkafrost one of few players with large organic growth potential within existing conventional licence framework

Note: Bakkafrost takes no responsibility for the accuracy or correct interpretation of the collected estimates listed above. The purpose of the table is to generally illustrate return dynamics of projects requiring larger capital investments.

~ 6.2BN PLANNED INVESTMENTS 2022-2026 FRONTLOADED TO ACCELERATE BUSINESS TRANSFORMATION IN SCOTLAND

Faroe Islands:

• Hatchery capacity (2026 capacity: +23m smolt at 500g)
• Increase feed capacity to cater 200,000 tonnes (HOG) harvest
• Flexibility for further expansion to 290kt (HOG) harvest
• 7,000m3 multi-purpose well boat
• Seawater expansion investments, including offshore
• Broodstock facility

Scotland:

• Hatchery capacity (+18m smolt at 500g in 2026)
• Processing plant
• Treatment vessels
• Marine Site development

Planned investment profile is subject to necessary agreements being secured with responsible authorities

Planned investment profile 2022-2026 (DKK 1,000)

PLANNED INVESTMENTS ENSURE SIGNIFICANT UPLIFT IN CAPACITY VALUE CHAIN SYNCHRONISED AT 180KT HOG HARVEST CAPACITY IN 2026

• Value chain syncronised at 180kt capacity in 2026
• Extra capacity as "insurance", flexibility and for growth:
• Broodstock (flexibility and future growth)
• Smolt (flexibility and future growth)
• Treatment (improved ability to deal with biological issues)
• Vessel transportation (flexibility and future growth)

• Primary processing (market flexibility)

• Transportation (flexibility and future growth)

• Maintain global EBIT/kg leadership in the Faroes

• Industry leading on EBIT/kg in Scotland
• 40% organic growth using existing licences reaching 150,000kt harvest in 2026
• Synchronise value chain at 180,000kt capacity
• Explored further organic growth opportunities

HEALTHY MARGINS IN SCOTLAND

MAINTAIN COST POSITION

BUILD CAPACITY 180,000t (HOG)

HARVEST 150,000t (HOG)

EMPLOYEE SAFETY A CORE CRITERIA FOR ALL OUR ACTIVITIES

Improve

• Further strengthen our Safety Culture
• Training staff & managers (e.g. IOSH training)
• Communication and Awareness (H&S is 1st meeting topic)
• Site visits and H&S audits (by 3rd party at site level)
• New Safety Management Systems
• Prepare for ISO 45001 certification
• Implemented "Good Catch" near miss registration

ONE COMPANY THE FUTURE OF BAKKAFROST

FSV operation

• Efficient use of assets
• Enables knowledge sharing and accumulation

Feed

• Econonomies of scale
• Ensures consistent quality
• Adds to differentiation

Sales

• One sales organisation
• Full transparancy and production control
• Optimise achieved prices

ONE COMPANY SHARED SERVICES - EXAMPLES

• Lost Time Injury Rate less than 5 for the Bakkafrost Group
• 0 fatalities
• ISO 45001 certified
• Truly One Company with
• Efficient shared services
• Harmonised best practice processes

SUSTAINABILITY CHALLENGES FARMED SALMON HAS AN IMPORTANT ROLE TO PLAY

Sources: UN, Earth Overshoot Day 2019, FAO, IPCC 2018 Report

FARMED SALMON – LOW CARBON FOOTPRINT EFFICIENT USE OF NATURAL RESOURCES

Note: CO2e is calculated by multiplying the emissions of each of the six greenhouse gases (CO2, CH4, N2O, HFCs, PFCs and SF6) by its 100-year global warming potential (GWP)

Source: Unilever Food Solutions & Global Salmon Initiative

FARMED SALMON – LOW LAND AND FEED CONVERSION RATIO EFFICIENT USE OF NATURAL RESOURCES

Land area needed to produce 100g of edible protein Feed Conversion Ratio (FCR)

Source: GSI

Note: Feed conversion ratio (FCR) measures the productivity of different protein production methods. It demonstrates the kg in feed need to increase the animal's bodyweight by 1kg.

Source: GSI

FARMED SALMON - LOW WATER FOOTPRINT EFFICIENT USE OF NATURAL RESOURCES

Source: GSI

Water consumption (liter per edible meat) Bakkafrost has an ongoing target to have 97% water recirculation rate in our hatcheries

• Reduced water usage by 95% at our site Applecross by introducing RAS
• Water use in Scotland will decrease significantly with the planned investments in new hatcheries with RAS

FARMED SALMON – HIGH EDIBLE YIELD EFFICENT USE OF NATURAL RESOURCES

These calculations take into account differences in FCR, edible yields and the cost of progeny. Source: Global Salmon Initiative, Bakkafrost

FARMED SALMON - NUTRITION A HEALTHY SOURCE OF PROTEIN

On average, 100g of Bakkafrost salmon contains:

Omega 3/Omega 6 ratio consumer portion - 2020 0,0 0,5 1,0 1,5 2,0 Norway Bakkafrost Omega 3/Omega 6 ratio

Source: Sjømatdatabasen, Bakkafrost

Vitamin D - µg/100g - 2020

Source: Sjømatdatabasen, Bakkafrost

FARMED SALMON IS A VERY RESSOURCE EFFICIENT SOURCE OF HEALTHY PROTEINS

SUSTAINABILITY CHALLENGES – IMPORTANCE OF AQUACULTURE HEALTHY ENVIRONMENT AQUACULTURE PRODUCTION MUST CONTINUE TO GROW TO MEET WORLD FISH DEMAND

Growth in world fish supply since the 1990s has come from aquaculture.

Aquaculture production would need to more than double between 2010 and 2050 to meet projected fish demand in our baseline

GROWING SUSTAINABLY HEALTHY ENVIRONMENT EXAMPLES OF HOW WE EMBED SUSTAINABILITY IN OUR BUSINESS MODEL

Recycle or repurpose old farming nets and chains. Repair and reuse cables and pipes

plant produces renewable energy from bioorganic waste from Bakkafrost hatcheries

GROWING SUSTAINABLY EXAMPLES OF HOW WE EMBED SUSTAINABILITY IN OUR BUSINESS MODEL

Electrification

• The majority of Bakkafrost feeding barges in the Faroe Islands are powered by electrical sea cables from land
• Building new pure electrical work boat

Full utilization of resources – minimise waste

• 100% utilisation of the salmon
• By-products sold for human or animal consumption

Building for the future Energy vessel efficiency (Bakkafoss, electical work boat, fuel consumption)

Reducing scope 3 emission

Own airline to reduce carbon air freight emission by 40-50%

• 50% reduction of scope 1 & 2 CO2 emission in the Faroes by 2030
• Over 97% water recirculation rate in hatcheries
• Ensured sustainable feed ingredients, supporting further growth
• ISO14001 certification in the Faroe Islands (already in place in Scotland)
• Zero fish escapes
• We commit to Net Zero by 2050

HEALTHY COMMUNITIES HEALTHY COMMUNITIES OUR COMMITMENT TO CREATE SHARED VALUE

We remain committed to our local communities in which we live and work.

As a responsible business, we are passionate about driving the economic growth and sustainability of the rural economy

HEALTHY COMMUNITY HEALTHY COMMUNITIES COMPLIANCE

We focus on ensuring:

• Ability to meet growing demand through regulated growth
• Compliance with relevant laws, regulations
• Compliance with local and international standards

We seek open and transparent communication with:

• Industry, customers, investors, stakeholder groups and our communities

Work closely with:

• SSPO (Scottish Salmon Producers Group)
• Faroese Fish Farmers Association

HEALTHY COMMUNITY HEALTHY COMMUNITIES COOPERATION TO IMPROVE INDUSTRY PRACTICE

Drive forward and collaborate with authorities, peers in the industry and a number of leading industry groups including:

Global Salmon Initiative (founding member)

• The Faroese Sustainable Business Initiative
• SSPO (Scottish Salmon Producers Organisation)

EFFOP (European Fishmeal and Fish oil producers)

Faroese Employers Association and Fish Farmers Association

Scotland Food & Drink

IFFO The Marine Ingredients Association

Lantra

• SEDEX
• SAIC (Scottish Aquaculture Innovation Centre)

HEALTHY COMMUNITY HEALTHY COMMUNITIES FAIR EMPLOYER

To ensure inclusivity, open fair and equal opportunities and recruitment with clear priorities in key areas

Develop a mental health & wellbeing strategy

Active participation in Modern Apprenticeships and Graduate training schemes in Scotland

Partnering with local schools for internships. Expanded partnership 10th grade maritime concentration

Participation in "kick-start" programme to encourage employment for young people

Integration initiatives for our growing international staff

HEALTHY COMMUNITY HEALTHY COMMUNITIES POSITIVE FORCE IN COMMUNITIES

• Year-round sustainable employment in remote rural areas in the Faroe Islands and Scotland
• 3.5% of the total Faroese workforce is employed by the Bakkafrost Group (in 24 of the 29 municipalities in the country)
• Largest private employer in the Western Isles in Scotland
• Social responsibility

"The partnership with Bakkafrost is exemplary, and we are thankful for their commitment to offer our clients an opportunity to be active in the labor market again"

Quote: Hallur Thomsen, Director at Almannaverkið, Department of Social Services

• 2.1 mDKK partnership with The University of the Faroe Islands

• Housing programme as part of new site development plans, included a local Café in Lochcarron

• Investment in key skills to facilitate sustainable growth and investment plan

• Increase transparency on local value creation
• Educate key stakeholders on the benefits of salmon aquaculture
• Increase collaboration with key stakeholders to achieve the Healthy Living Plan
• Continue investment via our Healthy Living Fund in the Faroes and Community Fund in Scotland

HEALTHY COMMUNITIES

TARGET SUMMARY 2022-2026 TOP 4 TARGETS PER AREA FOR SUSTAINABLE GROWTH

• Investment in key skills to facilitate sustainable growth
• Increase transparency on local value creation
• Educate key stakeholders on the benefits of salmon aquaculture
• Continue investment via our Healthy Living Fund in the Faroes and Community Fund in Scotland
• Faroese scope 1&2 CO2 emission reduced 50% in 2023
• Net Zero by 2050
• 97% water recycling in all hatcheries

• Ensured sustainable feed ingredients for further growth

• Truly One Company

• Harmonised Best Practice Processes
• Group LTIR less than 5 0 fatalities

• ISO 45001 certified

• 500g smolt across the Group

• bFCR <1.05 in the Faroes and 1.15 in Scotland
• Salmon survival rate >94% in the Faroes and >88% in Scotland

• Yield per smolt >4.3 for the Group

• Further organic growth opportunities explored

• Industry leading EBIT/kg in Scotland
• 150,000kt harvest
• 180,000kt value chain capacity

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Processing

Faroe Islands 14 September 2021

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 under-takings 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.

Glyvrar

• Capacities per day
• Gutting 375 tonnes (HOG)
• Filleting 160 tonnes (HOG)
• 100.000 tonnes (HOG) through Harvest per year

PROCESSING PROCESSING CAPABILITIES FAROE ISLANDS

Vágur

• Capacities per day
• Gutting: 110 tonnes (HOG)
• 25.000 tonnes (HOG) per year

PROCESSING LOGISTICS CHAIN FAROE ISLANDS

• Large investments in highly flexible value chain
• State-of the-art VAP factory with high capacity
• Ability to adapt to rapidly changing market situations

• Ability to meet increased retail demand for consumer products

• Central location

• Short distance to farms
• Access to labour improved since opening of tunnel to Tórshavn
• Ability to adapt to rapidly changing market situations
• Short response time with managers on site
• Flexible staff
• Flexibility great advantage during market disruptions (e.g Covid-19 pandemic)

CURRENT PROCESSING IN SCOTLAND

• Two processing facilities with separate harvest stations
• Serve wide geographical spread of marine sites
• Ranges from 1 to over 400KM from farm to harvest
• Current Capacity
• 210te/day (HOG)
  • (Increased from 170te/day in 2020)

PROCESSING CAPABILITIES SCOTLAND HEALTHY LIVING

Marybank

Capacities per day

• Gutting -103 tonnes (HOG)
• Filleting 33 tonnes (HOG)
• 32.000 tonnes (HOG) through Harvest per year
• Smoked salmon (Harris & Lewis smokehouse)

PROCESSING CAPABILITIES SCOTLAND HEALTHY LIVING

Cairndow

Capacities per day

• Gutting -103 tonnes (HOG)
• Filleting 18 tonnes (HOG)
• 32.000 tonnes (HOG) through Harvest per year

CURRENT PROCESSING IN SCOTLAND HEALTHY LIVING

• Fully optimised current capacity
• New gutting machines and robotic palletisation at Marybank
• 4th gutting machine at Cairndow
• Increased filleting capacity (+60%)
• Supports next two years
• Manual processes remain
• Harvesting
• Grading & palletisation (Cairndow)
• Icing and packing
• Limited labour pool

PROPOSED PROCESSING CHANGES IN SCOTLAND HEALTHY LIVING

• Highly automated quality focused processing
• Swim through harvest
• Latest processing technology
• Automated packing & palletisation
• Scalable design to build capacity in line with business growth
• Unique pre-rigor fillets ensuring freshness to market
• Green energy opportunity

EXPECTED OPERATIONAL OPPORTUNITIES HEALTHY LIVING

• Fully integrated processing facility based on Glyvrar
• Flexibility (capacity headroom)
• React to Market
• Contingency for marine events
• Value retention through secondary processing
• Access to labour
• Efficiency
• Minimal fish handling
• Maximised quality
• Reduced man hours
• Increased tonnage 550te/day
• Transform
• Access to markets
• Pre rigor fillets maximum freshness
• Target operational by 2024

Production volumes vs Processing Capacity

GLYVAR TOUR OVERVIEW

GLYVAR TOUR LAYOUT

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Consumer Trends

Faroe Islands 14 September 2021

Nordic consumers are reconsidering their health

Over 50% Yet,25% But: 3 in 5

of Nordic consumers claim to eat healthily all or most of the time.

of Nordic consumers aspire to consume more nutritious food/drink over the next year

Nordic consumers agree that there is too much conflicting information about what a healthy diet is

'Natural' and 'low sugar' are top health preferences in food & drink

Beyond basic nutrition: COVID-19 fuels intentions to eat a diet that limits risk of lifestyle diseases

Nordic consumers would ideally like their diet to…

Pandemic fuels interest in immune-boosting diets

Spotlighting 'genuine' immunity credentials has never been more timely. Less than 1% of food/drink launches in the Nordics over the past year featured immunity claims.

Tine Biola Lactose Free Skimmed Cultured Milk with Melon & Passionfruit is enriched with vitamin D, which is said to contribute to the normal function of immune system, Norway

Innocent Super Smoothie On Guard comprises a mix of pineapple, guava, orange and turmeric with added vitamins and "helps guard your immunity", Sweden

of Finnish adults have been prompted by the COVID-19 outbreak to include immuneboosting foods to their diets (e.g. fresh fruit, zinc-rich foods)

Plant power: Nordic consumers strive to eat fewer animal products

<10%

of consumers across Nordic countries claim to be avoiding animalderived food

over half a third

of the Nordic population claim to be limiting their meat intake

of consumers in Norway, Sweden and Finland say that COVID-19 proves that humans need to eat fewer animals (Denmark: 24%)

Taste 2.0: umami flavour for vegetable dishes

Neither agree nor disagree Somewhat disagree Orkla in Denmark launches an umami sauce to provide flavour for vegetable dishes

Sustainability concerns disrupting shopping priorities

Planet in crisis: brands must be part of the solution

7 in 10 over half ~50%

consumers across Nordic countries say they try to act in a way that is not harmful to the environment

of consumers across Nordic countries agree it is hard to know which factors have the most impact on the environment (eg food waste, reduced energy use)

of consumers across Nordic countries agree that companies/brands can be leaders in protecting the environment

Sustainability will dominate the 2020s

Global: % of food and drink launches making health* or sustainability claims, by year, 2005-20

* for this analysis, health-related claims include functional, plus, minus, and natural claim categories on GNPD Source: Mintel GNPD (dotted lines are based on the continuation of current rates of growth)

Linking health and the environment is the way forward

Governments are reacting. Denmark recently updated its official dietary advice to consider not only health, but also the environment (Denmark)

Brands are reacting. Fazer have launched a range of "responsible" oat-based cooking sauces to add flavour to vegetarian and vegan foods. "What nature would feed you" (Finland)

Chefs are reacting. Norwegian chef Lise Finckenhagen promotes a "Weekly Planetary Health Menu", including dishes such as vegetable tacos, grilled cod, and falafel wraps with hummus (Norway)

Climate change will drive the need to change

Source: Our World in Data

'Climate anxiety' calls for understandable carbon labelling

CO2 neutral, CO2 negative, CO2 positive: Climate-friendly labelling on food and drink is emerging but it lacks standardization and, often, clarity.

CO2 compensated (Sweden)

CO2 neutral (Denmark)

Climate positive (Finland)

Nordic consumers seek local solutions

When surveyed during the pandemic, many consumers were turning to food and drink solutions from local producers and brands.

LOCALLY GROWN 32%

of Swedish consumers typically try to buy locally grown food all or most of the time

LOCAL BRANDS

of Finnish consumers plan to support more local food/drink brands over the next 12 months

Totensupper Sweet Potato and Carrot Soup is described as local, short-distance travelled and healthy food that comes straight from the farmer (Norway)

Base: 1,000 internet users aged 16+ per country in Sweden, Finland Source: Lightspeed/Mintel, Mintel GNPD

Upcycling as a way to food waste reduction

A third of Swedish and Finnish, 37% of Danish and 43% of Norwegian consumers say, after the COVID-19 pandemic subsides, they'll try to plan meals ahead to make use of all ingredients and avoid waste.

In Sweden, Karma connects surplus food from restaurants and grocery stores with hungry consumers via the Karma app.

Rema 1000 Stop Madspild Daloon Odd Sized Vegetable Mini Spring Rolls comprise discarded and imperfect in appearance vegetable spring rolls that would not have been sold, in order to minimize food waste, Denmark

Svenska Sea Salt Root Vegetable Chips are made with rescued beetroot, carrots and parsnips, and are said to be part of the food waste revolution, Sweden

Plastic packaging under high scrutiny, but COVID-19 sparks more reasonable debate over its benefits

3 in 5 Consumers want less plastic

of consumers across Nordic markets think brands should reduce the amount of plastic packaging they use

Plastic reduction through thoughtful design

Tine Organic Milk:

The new pack is lighter in weight having one less layer, it does not have a screw cap, contains less plastic, and causes lower carbon footprint than common carton, Norway

Lantmännen Durum Wheat Hot Dog Buns now feature 21% less plastic, which is said to save 60 tonnes of plastic annually, and 121 tonnes CO2 emissions, Sweden

Recycling presents an acceptable solution

Consumers are putting the responsibility for recycling squarely on the shoulders of brand owners.

61%

56%

of Swedish consumers say food and drink brands should use packaging that can be recycled

Source: Lightspeed/Mintel

of Finnish consumers say food and drink brands should use more recycled material when making packaging

of Danish consumers say food and drink brands should make it easier to recycle their packaging

45%

Base: 1,000 internet users aged 16+ per country in Sweden, Finland, Denmark

Closing the loop: use of recycled plastic sees huge jump in claims

been repackaged in a 1L pack made from 50% recycled plastic, Denmark

Consumers look to brands for alternative solutions

In the longer run, brands will have to come up with suitable alternatives to plastic that have same or similar advantages (light weight, inexpensive production, protecting the product and holding it fresh).

Chew Folk Peppermint Natural Chewing Gum retails in a 100% biodegradable pack: "You're never too small to make a difference, said the plastic-free chewing gum", Sweden

Base: 1,000 internet users aged 16+ per country

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Sustainability

Faroe Islands 14 September 2021

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.

SUSTAINABILITY EMBEDDED DEEPLY IN EVERYTHING WE DO

4th Annual Sustainability Report is available on our website

HEALTHY LIVING PLAN HIGH LEVEL OVERVIEW

	Healthy Business	Healthy People	Healthy Salmon	Healthy Environment	Healthy Communities
STRATEGIC PRIORITY	To grow efficiently and responsibly	To be a preferred employer	To exceed leading standards	To minimise our environmental impact	To create shared value
$\blacksquare$ 2020 PERFORMANCE AGAINST OUR 2020 COMMITMENTS $\bullet\bullet\bullet$	• Have zero cases of noncompliance • Have customer net promoter score (NPS) of 9 out of 10 or above $\cdot$ Invest in a new biogas plant $\bullet$	• Renew our employee strategy $\cdot$ Launch an employee engagement survey • Have zero fatalities	• Maintain our high omega-3 levels $\bullet$ • Maintain high customer satisfaction with $\bullet$ product quality • Reduce fish mortality to 6% • Have ASC certification across all sites (end of 2020 GSI goal) • Further develop and implement non- medicinal treatments with high focus on fish welfare • Have zero fish escapes	• Further optimise feed distribution • Continue phasing out copper-treated nets • Implement a sustainable feed policy	• Set up a new 'Healthy Living' Fund • Implement stakeholder engagement plan • Implement a new community investment plan
	See page 22 for more details	See page 28 for more details	See page 40 for more details	See page 54 for more details	See page 68 for more details
2023 GOALS	• Have zero cases of non- compliance • Actively engage customers in waste reduction • Maintain high NPS and customer satisfaction with quality scores • Update procurement policy and supplier code of conduct • Influence the improvement of aquaculture practices • Extend ISO9001 standard certification • Focus on producing salmon from own unique breed	• Have industry-leading employee engagement scores • Launch internal sustainable behavior campaign • Maintain gender diversity in senior positions • Reduce absence rate by 10% • Become certified against ISO45001 standard • Reduce LTA to zero • Have zero fatalities	• Increase smolt size to 500g • Maintain our high omega-3 levels · Zero antibiotica use • Maintain salmon survival rate at 94% or above • Increase research to optimise fish welfare and product quality • Maintain industry leading approach to animal welfare • Maintain ASC certification, BAP certification or similar for all Bakkafrost salmon	• By 2030 reduce by 50% the scope 1 & 2 CO2 footprint in the Faroes • Continue research into sustainable feed ingredients • Investigate new sustainable marine sources for fishmeal • Optimise feed strategy to maintain industry leading FCR • Achieve ISO14001 environmental standard certification in the Faroe Islands, already in place in Scotland • Zero fish escapes • Measurably reduce environmental impact from packaging • Explore innovative waste streams at the new biogas plant • Over 97% water recirculation rate in hatcheries	• Actively educate key stakeholders on the benefits of salmon aquaculture • Increase collaboration with key stakeholders to achieve the Healthy Living Plan · Increase transparency on local value creation • Continue 10m DKK 3yr investment in Healthy Living Fund in the Faroe Islands • Continue investment in Community Fund in Scotland
(SDGs	• SDG 2 Zero Hunger • SDG 7 Affordable and Clean Energy • SDG 8 Decent Work and Economic Growth • SDG 9 Industry, Innovation, and Infrastructure	• SDG 5 Gender Equality • SDG 8 Decent Work and Economic Growth	• SDG 2 Zero Hunger • SDG 6 Clean Water and Sanitation • SDG 14 Life Below Water • SDG 17 Partnerships for the Goals	• SDG 6 Clean Water and Sanitation • SDG 7 Affordable and Clean Energy • SDG 9 Industry, Innovation, and Infrastructure • SDG 12 Responsible Consumption and Production • SDG 13 Climate Action • SDG 14 Life Below Water • SDG 15 Life on Land	• SDG 8 Decent Work and Economic Growth • SDG 17 Partnerships for the Goals

Bakkafrost is on track and have met 15 of 18 of our 2020 commitments

	Healthy Business	$\textbf{C}^{\text{g}}$ Healthy People	Healthy Salmon	Healthy Environment	Healthy Communities
STRATEGIC PRIORITY	To grow efficiently and responsibly	To be a preferred employer	To exceed leading standards	To minimise our environmental impact	To create shared value
$\binom{1}{1}$ 2020 PERFORMANCE AGAINST OUR 2020 COMMITMENTS	• Have zero cases of $\bullet$ noncompliance • Have customer net promoter score (NPS) of 9 out of 10 or above $\cdot$ Invest in a new biogas plant	• Renew our employee strategy • Launch an employee engagement survey · Have zero fatalities	• Maintain our high omega-3 levels • Maintain high customer satisfaction with product quality • Reduce fish mortality to 6% • Have ASC certification across all sites (end of 2020 GSI goal) • Further develop and implement non- $\bullet$ medicinal treatments with high focus on fish welfare • Have zero fish escapes	• Further optimise feed distribution • Continue phasing out copper-treated nets • Implement a sustainable feed policy	• Set up a new 'Healthy Living' Fund • Implement stakeholder engagement plan • Implement a new community investment plan
	See page 22 for more details	See page 28 for more details	See page 40 for more details	See page 54 for more details	See page 68 for more details

HEALTHY LIVING PLAN OUR 2023 COMMITMENTS

	Healthy Business	Healthy People	Healthy Salmon	Healthy Environment	Healthy Communities
STRATEGIC PRIORITY	To grow efficiently and responsibly	To be a preferred employer	To exceed leading standards	To minimise our environmental impact	To create shared value
3 2023 GOALS	• Have zero cases of non- compliance • Actively engage customers in waste reduction • Maintain high NPS and customer satisfaction with quality scores • Update procurement policy and supplier code of conduct • Influence the improvement of aquaculture practices • Extend ISO9001 standard certification • Focus on producing salmon from own unique breed	• Have industry-leading employee engagement scores • Launch internal sustainable behavior campaign • Maintain gender diversity in senior positions • Reduce absence rate by 10% • Become certified against ISO45001 standard • Reduce LTA to zero • Have zero fatalities	• Increase smolt size to 500g • Maintain our high omega-3 levels • Zero antibiotica use • Maintain salmon survival rate at 94% or above • Increase research to optimise fish welfare and product quality • Maintain industry leading approach to animal welfare • Maintain ASC certification. BAP certification or similar for all Bakkafrost salmon	• By 2030 reduce by 50% the scope 1 & 2 CO2 footprint in the Faroes • Continue research into sustainable feed ingredients • Investigate new sustainable marine sources for fishmeal • Optimise feed strategy to maintain industry leading FCR • Achieve ISO14001 environmental standard certification in the Faroe Islands, already in place in Scotland • Zero fish escapes • Measurably reduce environmental impact from packaging • Explore innovative waste streams at the new biogas -plant • Over 97% water recirculation rate in hatcheries	• Actively educate key stakeholders on the benefits of salmon aquaculture • Increase collaboration with key stakeholders to achieve the Healthy Living Plan • Increase transparency on local value creation • Continue 10m DKK 3yr investment in Healthy Living Fund in the Faroe Islands • Continue investment in Community Fund in Scotland

OUR SUSTAINABILITY CHALLENGE MORE FOOD PRODUCTION FROM THE OCEAN IS NEEDED

The world faces some of its greatest challenges ever

• By 2050, our planet will have about 9.7 billion inhabitants - around 25 percent more than we are today
• By 2050, world food production needs to double, but arable land is declining and arable land in the tropical regions in particular is becoming more and more depleted
• We need to produce as much food in the next 40 years, as we have in the last 8,000!

MORE SUSTAINABLY PRODUCED FOOD NEEDS TO BE SOURCED FROM THE OCEAN

• The biggest threat to the earth is CO2 and other greenhouse gases, gases that we produce through our consumption. As consumption increases, the amount of greenhouse gases produced increases, affecting global warming and leading to climate change.
• The total amount of CO2 we emit has increased by 36% since 1979.
• Opportunities for people and businesses as we take care of the challenges

BAKKAFROST'S TOTAL GHG EMISSION BY SCOPE REDUCING GHG EMISSION IS ONE OF THE MAIN CHALLENGES

Bakkafrost's scope 1 & 2 emissions account for 28% of the total GHG emissions.

Scope 3 emissions account for 72% of Bakkafrost's emissions

By 2030 reduce the scope 1 & 2 CO2 footprint by 50% in the Faroes

• Our aim is to decouple carbon emissions from our production, and we have managed to achieve this in some parts of the value chain – through electrification in areas such as feed barges, recycling of energy (at our hatcheries and feed and processing factories), etc.
• The biogas plant is expected to save 11,000 tonnes of CO2 emissions a year which represent about 2 % of the total electric power produced in the Faroe Islands in 2020.
• We plan to have our targets approved by the Science Based Target initiative (SBTi) by early 2022

Feed ingredients account for 50% of the Scope 3 emissions ¹¹

High marine inclusion in feed – with relative low carbon footprint

Bakkafrost has chosen to continue a high inclusion of marine content in our feed, as this is a more sustainable approach for our operations given our location.

Marine ingredients

Fisheries in the North Atlantic, primarily within Faroese waters, transparent supply chain, low demand on freshwater and land compared to imported plant proteins, reduced transportation, supporting circular economy, all off cuts purchased in the Faroes Island, positive economic impact for the Faroese community, increased nutritional value in the feed, high in omega 3 & fishmeal with a diet closer to the natural diet of wild salmon Low FCR, Good fishhealth.

Plant ingredients

The plant proteins and oils in our feed are all non-GMO, all soybeans are Pro-Terra certified and we do not use of palm oil

AIR FREIGHT REDUCE CO2 EMISSION BY CONTROLLING AIR FREIGHT THROUGH OWN CARGO PLANE

Taking control of air freight

• Air Freight accounts for 20% of the scope 3 emissions
• Reduction in CO2 emissions by 40-50%
• Reduce weight of air-freight by
• reduce flown ice
• fly less whole salmon
• Direct transport, shorter flight distance
• More control
• Increased responsiveness, faster delivery
• Longer shelf life, enables reduced food waste

CUSTOMER AND CONSUMER BEHAVIOUR ENGAGING WITH OUR CUSTOMERS

Reducing the scope 3 emission via consumer behaviour.

We will help make sustainable decision-making easier for consumers by adding environmental data, CO2e pr kg product, available on our packaging.

In cooperation with our customers we want to increase the demand for sustainable salmon and support the shift to a more environmental friendly diet, e.g. our new salmon burger.

Develop more recipes with low carbon cooking methods and recipes with a lower total amount of CO2.

By replacing a traditional burger with a salmon burger, you can cut around 75% of your carbon footprint.

CUSTOMER AND CONSUMER BEHAVIOUR THE 80/20

The wealthiest 20 per cent of the world's population account for 80 per cent of consumption of global resources

CUSTOMER AND CONSUMER BEHAVIOUR RELATIVELY SMALL CHANGES CAN HAVE A HUGE IMPACT

Distributed on:

Travel 1 tons, Services 1 tons, Food & drink 3 tons, Electricity, heat, etc. 3 ton, Shopping 4 tons

Worlds total average around 6 tons.

According to UN the average emissions need to be down to 2 tons per person by 2050 (4 tons by 2030)

CUSTOMER AND CONSUMER BEHAVIOUR FROM COUNTING CALORIES TO COUNTING CARBON DIOXIDES

Only 0.5% of the earth's water is available fresh water.

Globally 70% of freshwater is used for agriculture. With a growing population we all need to share this small amount of

freshwater.

1 person drinks

2 to 4 liter of water per day

1 person eats

2,000 to 5,000 liters

of virtual water embedded in food per day

CUSTOMER AND CONSUMER BEHAVIOUR WATER

Source: Menu.pdf (waterfootprint.org) ²⁰

CUSTOMER AND CONSUMER BEHAVIOUR FARMED SALMON IS A VERY RESOURCE EFFICIENT ALTERNATIVE FOR HEALTHY PROTEIN

NET ZERO BY 2050

Bakkafrost group commits to reach Net Zero greenhouse gas emissions by 2050

CREATING A SUSTAINABLE FUTURE

Norsk Hydro $A+$	Kongsberg Automotive	B.	Fjordkraft Holding	D.
Yara International $A+$	Kværner	B	Norwegian Air Shuttle	D
Aker Solutions A	Norske Skog	B.	Norwegian Finans Holding	D.
Borregaard $\mathbf{A}$	Norwegian Property	B.	Ocean Yield	D.
A Entra	Shelf Drilling	B.	Sbanken	D
$\mathbf{A}$ Equinor	SpareBank 1 Nord-Norge	B.	Selvaag Bolig	D
$\mathsf{A}$ Europris	SpareBank 1 SMN	B.	SpareBank 1 Ringerike Hadeland	D
Gjensidige Forsikring $\mathsf{A}$	Sparebanken Vest	B.	SpareBank 1 Østfold Akershus	D
Grieg Seafood $\mathsf{A}$	Subsea 7	B.	Sparebanken Møre	D
Mowi $\mathsf{A}$	TietoEVRY	B.	Axactor	E.
Orkla $\mathsf{A}$	XXI	B.	B2Holding	$\mathsf{E}\hspace{-.10em}$
Scatec Solar $\mathbf{A}$	Golden Ocean Group	$B -$	Bonheur	$\mathsf E$
Telenor $\mathsf{A}$	Norway Royal Salmon	$B -$	Bouvet	$\mathsf{E}$
Aker BP A-	Wilh, Wilhelmsen Holding	$B -$	Crayon Group Holding	$\mathsf E$
$A -$ Atea	Avance Gas Holding	$\mathsf{C}$	DNO	$\mathsf{E}\,$
Bakkafrost	$A - D$ Borr Drilling	$\mathsf{C}$	Medistim	$\mathsf{E}$
DNB $A-$	BW LPG	$\mathsf{C}$	Norwegian Energy Company	$\mathsf E$
Kongsberg Gruppen A-	FLEX LNG	$\mathsf{C}$	NTS	E
Lerøy Seafood Group $A-$	Frontline	$\mathsf{C}$	Olav Thon Eiendomsselskap	$\mathsf E$
Nordic Semiconductor A-	Hexagon Composites	$\mathsf{C}$	PCI biotech	$\mathsf{E}$
SalMar $A-$	NRC Group	$\mathsf{C}$	Protector Forsikring	$\mathsf{E}$
Schibsted $A-$	Odfiell Drilling	$\overline{C}$	RAK Petroleum	E
SpareBank 1 Østlandet A-	PGS	$\mathsf{C}$	Salmones Camanchaca	$\mathsf E$
Storebrand $A-$	SATS	$\mathsf{C}$	Self Storage Group	$\mathsf E$
TGS-NOPEC Geophysical Company $A-$	SpareBank 1 BV	$\mathsf{C}$	Solon Eiendom	$\mathsf{E}$
Veidekke $A-$	Stolt-Nielsen	$\mathsf{C}$	VoW (Scanship Holding)	$\mathsf E$
Elkem $B +$	Tomra Systems	$\mathsf{C}$	Komplett Bank	$\mathsf F$
SpareBank 1 SR-Bank $B +$	Wallenius Wilhelmsen	$\mathsf{C}$	NEL	$\mathsf F$
Adevinta B	Aker	D.	Northern Drilling	$\mathsf F$
AF Gruppen B.	AKVA Group	D	Otello Corporation	$\mathsf F$
B. Akastor	Arcus	D	Pareto Bank	Æ.
Austevoll Seafood B.	Arendals Fossekompani	D	Treasure	F
BW Offshore Limited B.	Data Respons	D
Höegh LNG Holdings B.	Fjord1	D

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – New Technology

Faroe Islands 14 September 2021

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 under-takings 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.

NEW TECHNOLOGY EXAMPLES OF R&D ACTIVITIES WITHIN BAKKAFROST

• Output from conventional farming constrained due to mix of biological and environmental factors
• Strong industry profitability has incentivised search for alternative production methods
• R&D licences issued in Norway contain mechanisms largely offsetting risks arising from trial of new concepts
• Offshore and semi offshore projects
• Closed and semi closed production in conventional areas
• Stand alone off-shore projects in China
• Limited information available
• Land based projects based on recirculation aquaculture systems (RAS) with application for
• Production of larger smolt for convectional aquaculture
• Integrated land based production

NEW TECHNOLOGY ILLUSTRATIVE COMPARISON ALTERNATIVE FARMING METHODS

Note: Bakkafrost takes no responsibility for the accuracy or correct interpretation of the collected estimates listed above. The purpose of the table is to generally illustrate return dynamics of projects requiring larger capital investments.

NEW TECHNOLOGY ILLUSTRATIVE COMPARISON ALTERNATIVE FARMING METHODS

Example, 10 ktonnes (HOG) marginal output	Conventional farming method			Offshore	Onshore
		Purchasing
	Using idle licence capacity	licence capacity (Norway)	Using idle licence capacity
Smolt size	100g	100g	500g	500g	500g
Onshore (months) Conventional seawater (months) Structures for harsh environment	12 18	12 18	16 12	16 7 5	26
Total	30	30	28	28	26
Licence cost (MNOK) (1)	0	1,360	0	n.a. (2)	n.a.
Marginal investment on shore (MNOK) Marginal investment seawater (conventional) (MNOK)	50 80	50 80	350 80	350	2,000 (3)
Marginal investment harsh environment structure (MNOK) Total marginal investment excl. working capital, vessels etc.	130	1,490	430	1,000 (4) 1,350	2,000
Price example	60	60	60	60	60 (5)
Cost example	40	40	40	37 (6)	45 (5)
Implied marginal EBIT	200	200	200	230	150
Implied marginal return	154%	13%	47%	17%	8%

Notes:

(1) Based on average auction price in Norway

(2) No basis for assumption offshore licence, assuming no increase in conventional MAB (stand alone project)

(3) Source: Broker research

(4) Assumed cost of structure required for net increase of 10k tonnes (HOG) after adjustment for reduced harvest in conventional farming

(5) Recalculated to HOG in Box Norway, cost estimate assuming scale, high utilisation and stable biology

(6) Public estimate from industry player testing structure, presumably exluding depreciation of farming structure and additional costs of servicing offshore

Note: Bakkafrost takes no responsibility for the accuracy or correct interpretation of the collected estimates listed above. The purpose of the table is to generally illustrate return dynamics of projects requiring larger capital investments.

NEW TECHNOLOGY OFF-SHORE/SEMI OFF-SHORE

• Two large scale off-shore projects realised to date
• Tested in semi harsh environment
• Reports of good performance in "off-shore" phase
• Materially reduction in biological challenges
• Several projects testing alternative concepts underway
• Interesting growth opportunity beyond 2026
• Development towards proven technology
  • Viable alternatives for offshore and semi offshore
  • Risk reduction
  • Possible alternatives requiring less capital
• Value chain well prepared

NEW TECHNOLOGY CLOSED CIRCUIT PRODUCTION IN FJORDS

• Concepts aim for reducing/eliminating exposure to external threats in traditional farming waters
• Several large scale concepts being tested
• Possible applications
• Combination with offshore production
  • E.g. 500g-2.5kg
  • Minimise probability of bringing undesired elements into large scale offshore structure
• Marginal sites in Scotland

NEW TECHNOLOGY ONSHORE PRODUCTION

• Integrated onshore facilities
• Largely similar to Bakkafrost RAS facilities for 500g smolt
• Volume requirement exponential with fish size
• Absence of traditional external threats
• Potential to produce close to the consumer
• Large capital investments and maintenance requirements
• Energy requirement for temperature control
• Risks of controlling highly complex site

VESSEL TECHNOLOGY DEVELOPMENT BAKKAFROST'S VESSEL FLEET IN THE FAROE ISLANDS

• Planned and required transportation to and from seawater sites
• Well boats
• Key resource to tackle challenges/threats for site managers
• Well boats and Farming Service Vessels (FSV)
• Value of in house capacity
• Installation and adjustment of
  • treatment equipment not straight

Vessel	Type	Capacity (m3)	Main tasks
Hans á Bakka	Wellboat	3,000	Harvest FW treatments
Martin	FSV	N/A	Delousing (Optilice & FLS), Net cleaning, Cable laying, towing
Róland	FSV	1,000	Delousing (Optilice), Net cleaning, Cable laying, towing, emergency mort.
Bakkanes	FSV	1,000	Delousing (FLS), Net cleaning, Cable laying, towing, emergency mort.
Víkingur	Wellboat	240	Live fish carrier (smolt)
Stígabrúgv	Wellboat	325	Live fish carrier (smolt)
Vesthav	Wellboat	650	Live fish carrier (smolt + harvest)
Bakkafossur	Wellboat	7,000	Live fish carrier (smolt + harvest), FW treatments, FW production

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Strategic Roadmap

Faroe Islands 14 September 2021

SCOTLAND OVERVIEW

2

ONE TEAM CEO AND MD OPERATIONAL UPDATE

Applecross

West Strome

CAPACITY / CAPABILITY

HEALTHY BUSINESS FACTORS EFFECTING RECENT PERFORMANCE

To create long term sustainable growth focussed on the principles of: Simplify - Strengthen - Growth

SIMPLIFY RESOLVE & RE-POSITION

SIMPLIFY IMPROVING PERFORMANCE METRICS

STRENGTH BEST PRACTICE & BUILD

Best Practice

Ronja Fisk

• Dedicated FW treatment vessel
• 2,500m3
• RO at 200T/hr

One Team

• Bakkafrost Freshwater team at Applecross
• Group Sales Director at Loch Striven

Marine Operations

• Cleanerfish / Wrasse strategy
• Final stocking
• Remote feeding
• Aeration

Build

HEALTHY ENVIRONMENT CASE STUDY - APPLECROSS

Water 90% reduction of use vs current

Recycled Materials Batching plant on site saves 130,000 km road miles 4,000 tonnes of rubble for subbase

Waste Reduced to 90% dry matter Reduce solids from 10 T/day to 0.35T/day, Saves 260 trucks/year 96% waste reduction

Heat Recovery Salt Water Heat Exchanger Reduces heat pump energy Saving 400kW/hr

Power Upgrade substation to 33kv Incoming power 3.4MW for supply security Power factor correction 10% energy reduction

Applecross Phase 5 – 10,000 m3 expansion to 28,000m3

Production increase to 8m smolt @ 500g

New facilities to 36,000 m3 Production capacity to 10m smolt @ 500g

STRENGTH PROCESSING - NEW FACILITY

• Highly automated quality focused processing
• Swim through harvest
• Latest processing technology
• Automated packing & palletisation
• Scalable design to build capacity in line with business growth
• Operational by 2024
• Unique pre-rigor fillets ensuring freshness to market
• Green energy opportunity

GROWTH TRANSFORM & PERFORM

MARINE STRATEGY

• Reposition and transition of cycles underway
• Shorter Marine cycle
• Quarterly cycles / stocking Metronomic
• Smoother production profile

FRESHWATER STRATEGY

• Consolidation to large hatcheries
• Remove 3rd party smolt within three years
• 10k m3 to 64k m3 capacity, by 2026
• 6m smolt @ 85g to 18m+ smolt capacity @ 500g by 2026

GROWTH TRANSFORM & PERFORM

FRESHWATER STRATEGY

• Large smolts shift the balance of risk
• FW treatment improves health / ability to tolerate environmental factors
• One Summer 50% risk removed

Production at 50kT by 2026

Survivability, health and efficiencies of scale transforms cost per kg

Mean weight increase to 5kg+

GROWTH COST & VALUE OPPORTUNITIES

HEALTHY BUSINESS SCOTLAND BY 2026

			No.1
Capability Capacity	RAS FW Treatment One Team +	50kT Survivability Mean Weights
Control	Processing Vessels Brands	Feed Conversion Quality Value	EBIT/kg ESG Animal Welfare Employer of Choice Growth

THANK YOU

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Fish meal, oil and salmon feed

Faroe Islands 14 September 2021

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 under-takings 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.

HEALTHY LIVING WELCOME TO HAVSBRÚN

HEADLINE 1 (ARIAL BOLD 16)

HEADLINE 2 (ARIAL 14)

AGENDA

• What do we do at Havsbrún
• Natural feed to our salmon
• R&D the benefits
• Feed to Scotland Synergies
• Future Investment in new feedline
• MSC and blue whiting, what is the situation?

Meal and oil department

Feed department

FISH MEAL, OIL AND SALMON FEED COMPARISON MARINE CONTENT

Transformation

RAW MATERIAL IN SALMON FEED

SOME OF THE BENCHMARKING RESULT WITH HIGH MARINE PROFILE

• Strong performance by Havsbrún feed
• More efficient digestion
• More rapid growth

Benchmarking GIFAS: Performence - Weight after 84 days at 12,2o C

FISH MEAL, OIL AND SALMON FEED COMPARISON MARINE CONTENT

HP EFFECT ON QUALITY & GROWTH

• Higher harvest yield
• Lower fat
• Lower viscerosomatic index (VSI)
• Thicker hypaxial anterior muscle (HAM)
• Higher condition factor
• Better fillet quality
• Better growth (TGC) Lower FCR

CREATING SUPERIOR QUALITY

• Fillet quality
• Great fillet color
• Rich in long-chained omega-3 (FA profile)
• Shelf life
• Unique taste

See the different - Taste the different – Measure the different

FISH MEAL, OIL AND SALMON FEED RESEARCH AND DEVELOPMENT

BFCR og EFCR slakt

FISH MEAL, OIL AND SALMON FEED SYNERGIES

• 155.00 tons of hog salmon is corresponding to app. 200.000 of fish feed.
• Feed line 1 & 2 have a max capacity at 150.000 tons ( Seasonal depending)
• The new 3. feed line will increase capacity with 125.000 ton up to app. 275.000 tons
• The 4. feed line will increase capacity with 125 tons up to 400.000 tons
• Building constructions, silos and IT software are

FISH MEAL, OIL AND SALMON FEED ILLUSTRATION OF PLANT DEVELOPMENT TO MEET REQUIREMENT

FISH MEAL, OIL AND SALMON FEED ILLUSTRATION OF PLANT DEVELOPMENT TO MEET REQUIREMENT

FISH MEAL, OIL AND SALMON FEED MSC CERTIFICATION BLUE WHITING

WHAT IS NAPA TRYING TO DO?

NAPA aims to secure:

1. An agreement on total allowable catches for Northeast Atlantic mackerel, Norwegian Spring Spawning (Atlanto-scandian) herring, and Northeast Atlantic blue whiting in line with scientific advice,

2. A long-term science-based management agreement.

NAPA MEMBERSHIP

FISH MEAL, OIL AND SALMON FEED MSC CERTIFICATION BLUE WHITING

THANK YOU

FISH MEAL, OIL AND SALMON FEED

27

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Market, Brands & Products

Faroe Islands 14 September 2021

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 under-takings 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.

SUPPLY OUTLOOK KONTALI 5 YEAR ESTIMATE – HISTORICAL SUPPLY DEMAND BALANCE

2020-2025 - 4% CAGR MARKET BALANCE AT ~6-7% GROWTH

MARKET OUTLOOK UNCERTAINTY & OPPORTUNITY

Supply uncertainties

• Availability of new licenses in Norway
• Supply fluctuations driven by biology
• Introduction of new technology

Demand opportunities

Well-placed to capitalise on:

• Spike in demand from reduced Covid19 measures
• Food service
• Retail
• Mega trends of healthy eating, integrity and trust through integrated value chain
• ESG credentials
• Growth potential in existing markets and Free Trade opportunities
• Creating value through customer service, customer partnerships and meeting requirements in terms of quality
• Consumer product development
• Market differentiation

PRESENT BRAND STRATEGY IN THE BAKKAFROST GROUP

FUTURE BRANDS FOR BAKKAFROST

A SHORT INTRODUCTION TO THE BAKKAFROST BRANDS

SCOTLAND FAROE ISLANDS

NATIVE HEBRIDEAN

Raised, Hand Cured and Freshly Smoked on the Hebridean Islands of Scotland We hand cure and freshly smoke only Native Hebridean Salmon, born and sustainably raised on the Hebridean Islands of Scotland. These award winning salmon are prized by the world's finest chefs BLE 01 NORTH UIST for their firm texture and outstanding flavour. BLE OF Fresh fillets are hand cured by skilled Smoke Masters using our 'Traditional Island Recipe'. Cured fillets are then smoked in pebble lined kilns using wood shavings of aged Scotch Whisky barrels. Naturally rich in Omega 3, Native Hebridean Smoked Salmon offer a unique fresh taste of the Scottish Hebridean Islands. www.nativehebrideansmoked.com PRODUCT OF SCOTLAND X Nutrition Facts Ingredients: Native Hebridean Farmed Scottish Salmon 2 Servings per package. Serving size 2oz, 2 slices (Salmo salar) (Fish) (97%), Sea Salt. Allengens: For allengens see ingredients in bold. Storage: Keep refrigerated below 38°F. Once opened consume within 3 days. Do nat exceed the Use by Date. Amount per serving 106 This product is suitable for home freezing. Calories Warning: Although all care has been taken to remove N Dally Value small bones, some may remain. Total Fat 6g 8% PRODUCED ON THE HEBRIDES BY Saturated Fat 2g 10% THE SCOTTISH SALMON COMPANY Trans Fat Og 28 Drumsheugh Gardens, Edinburgh, EH3 7RN, Scotland, UK Cholesterol 32mg 11% 33% Sodium 754mg 0% Total Carbohydrates Og 0% Dietary Fiber 0g $O\%$ Total Sugars 0g $O\%$ Includes Added Sugars 0g 28% Protein 14g Vitamin D 4mcg 20% 0% Calcium 4mg 0% Iron Omg 6% Potassium 294mg The % Daily Value (DV) tells you how much a nubtent in a serving of food contributes to a daily diet. 2,000 calories a day Contains 1.0g of Ornega 3 fatty acids per serving. 5		'NATIVE HEBRIDEAN SMOKED SCOTTISH SALMON Raised, Hand Cured and Freshly Smoked on the Hebridean Islands of Scotland
Image Front View from Dalbeg, Isle of Lewis Image Back: "Machair" unique dune grassland, Pabay Sound ōì (Cadas Phabaight Valtos, Isle	Net weight: See reverse

LOCHLANDER

18 ISLANDS

HEIMLAND

PRODUCT RANGE

PRODUCT RANGE

PRODUCT RESEARCH & DEVELOPMENT

• Salmon Burgers
• Smoked salmon
• Sous Vide "Ready" meal
• Reduce plastic in packaging
• Use recyclable plastic
• Use plastic produced of recycled plastic
• Production techniques and equipment

Prototype of Sous Vide consumer product

HEALTHY SALMON

THANK YOU

Bakkafrost presentation A world-class company in the salmon industry

Capital Markets Day – Smolt and Broodstock

Faroe Islands 14 September 2021

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.

LARGE SMOLT – FAROE ISLANDS

STROND: 500G SMOLT PLANT (8 MILLION P.A.)

• Approx. 13½ months from input to the first sea transfer (440g)
• The last smolts of the Stofn aug19 batch was transfered to sea side approx. 16 months after input (550g).
• Growth depends on typically depends on good planning:
• Temperature, water quality, fish welfare, availability of seasides

Key benefits:

• Reduce biological risk
• Increase production efficiency
• Enable organic growth

LARGE SMOLT – FAROE ISLANDS FACILITIES IN THE FAROE ISLANDS

	Hatchery	Water capacity (m3)	Production capacity (tons/year)
	S03 Norðtoftir	5.150	649
	S04 Húsar	1.350	170
2021	S08 Gjógv	1.260	159
	S16 Glyvradalur	1.537	194
	S21 Viðareiði	11.248	1.417
	S24 Strond	29.000	3.654
	Total	49.545	6.243

	Hatchery	Water capacity (m3)	Production capacity (tons/year)
	S03 Norðtoftir	5.150	680
	S04 Húsar	1.350	178
2022	S08 Gjógv	1.260	166
	S16 Glyvradalur	1.537	203
	S21 Viðareiði	12.568	1.659
	S24 Strond	29.000	3.828
	Total	50.865	6.714

S03 Norðtoftir 17.150 2.264 S04 Húsar 1.350 178 S08 Gjógv 1.260 166 S16 Glyvradalur 14.450 1.907 S21 Viðareiði 12.568 1.659 S24 Strond 29.000 3.828 Total 75.778 10.003

Production capacity

(tons/year)

Hatchery Water capacity (m3)

2023

Hatchery	Water capacity	Production capacity
	(m3)	(tons/year)
S03 Norðtoftir	17.150	2.470
S04 Húsar	1.350	194
S08 Gjógv	1.260	181
S16 Glyvradalur	14.450	2.081
S21 Viðareiði	12.568	1.810
S24 Strond	29.000	4.176
Total	75.778	10.912

2024	S08 Gjógv	1.260	181
	S16 Glyvradalur	14.450	2.081
	S21 Viðareiði	12.568	1.810
	S24 Strond	29.000	4.176
	Total	75.778	10.912
	Hatchery	Water capacity	Production capacity
		(m3)	(tons/year)
	S03 Norðtoftir	17.150	2.264
	S04 Húsar	1.350	178
2025	S08 Gjógv	1.260	166
	S16 Glyvradalur	14.450	1.907
	S21 Viðareiði	12.568	1.659
	S24 Strond	29.000	3.828
	S25 Ónavík	9.860	1.302
	Total	85.638	11.304
	Hatchery	Water capacity	Production capacity
		(m3)	(tons/year)
	S03 Norðtoftir	17.150	2.470
	S04 Húsar	1.350	194
2026	S08 Gjógv	1.260	181

	Hatchery	Water capacity	Production capacity
		(m3)	(tons/year)
	S03 Norðtoftir	17.150	2.470
	S04 Húsar	1.350	194
	S08 Gjógv	1.260	181
	S16 Glyvradalur	14.450	2.081
	S21 Viðareiði	12.568	1.810
	S24 Strond	29.000	4.176
	S25 Ónavík	9.860	1.420
	Total	85.638	12.332

LARGE SMOLT – FAROE ISLANDS OBSERVATIONS FROM USE OF LARGE SMOLT

Observations:

• Reduced 90d mortality
• Faster growth

90d mortality falling as our smolt size has increased

LARGE SMOLT – FAROE ISLANDS NORÐTOFTIR EXPANSION

LARGE SMOLT – FAROE ISLANDS GLYVRADAL EXPANSION

OUR ROUTEMAP TO LARGER SMOLT IN SCOTLAND EXISTING SMOLT PLANTS IN SCOTLAND HEALTHY LIVING

45% <10% 1 – 3 years

Loch Damph FW Loch

Couldoran FT - 700m3 RAS – 500m3

Kinlochmoidart FT 220m3 RAS – 800 m3

Flow-thru 1380 m3

OUR ROUTEMAP FOR LARGER SMOLT IN SCOTLAND APPLECROSS – OUR FIRST FULLY INTEGRATED RAS IN SCOTLAND

OUR ROUTEMAP TO LARGER SMOLT IN SCOTLAND GROWTH; TRANSFORM

36,000 m3 Production capacity increase up to 10m smolt @ 500g

NEW FACILITIES GROWTH - TRANSFORM

OUR ROUTEMAP TO LARGER SMOLT IN SCOTLAND THE FRESHWATER IMPACT ON OUR MARINE STRATEGY

Freshwater Strategy

• Simplify operations
• Safe, energy effective and cost-efficient production
• Optimal and stable water quality
• Sustainability less water use lochs
• High growth and low mortality rates

Marine Impact

• Lower Biological Risk shorter cycles
• Less handling for treatments
• One Summer
• Healthier salmon welfare
• Sustainability

SUMMARY OF OUR FRESHWATER STRATEGY FROM TRANSFORMATION TO DIFFERENTIATION

Transform all Freshwater operations from Flow-thru to RAS

Gradual Increase Smolt size from 85 to 500g

Scottish Provenance

THE SCOTTISH BROODSTOCK PROGRAMME THE HISTORY OF OUR BROODSTOCK

NATIVE HEBRIDEAN: The only truly Scottish farmed salmon

Individually tested for IPN Sentinel populations

DNA assisted markers for family identification

Multipliers speed up genetic improvement

.

THE SCOTTISH BROODSTOCK PROGRAMME OUR 'TRULY SCOTTISH' OPPORTUNITY

• Government-run program since late 1970'ies to around 2013
• Bakkafrost took over developed around 1,000 families
• This selection comprises, an increased resistance to:
• PMCV/CMS (piscine myocarditis virus / cardiomyopathy syndrome)
• IPN (infectious pancreatic necrosis)
• PD (pancreas disease)
• PRV/HSMI (piscine orthoreovirus / heart and skeletal muscle inflammation)

Next goal: Sea lice resistance

Bakkafrost owns the Intellectual Rights of two origin-based salmon strains:

• Better control and more predictable quality
• Robust smolt resistant to deceases
• Short learning cycles and rapid advancements due to integral broodstock programme (FO)

Bakkafrost is building a new large broodstock facility in the Faroe Islands with annual production of 70 million eggs