Bakkafrost P/f — Investor Presentation 2021

May 11, 2021

Q1 2021

BAKKAFROST GROUP Glyvrar 11 May 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.

SUMMARY OF Q1 2021

MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK APPENDIX

	 Harvest in the Faroe Islands (FO): 14,025 tgw in Q1 2021 (10,667 tgw in Q1 2020)
	 7,002 tgw in Q1 2021 (7,268 tgw in Q1 2020) Harvest in Scotland (SCT):
Operation	 Feed sales of 23,717 tonnes in Q1 2021 (19,123 tonnes in Q1 2020)
	 of 48,547 tonnes in Q1 2021 (64,807 tonnes in Q1 2020) Raw material purchase
Revenues and	 Revenues of DKK 1,175.6 million in Q1 2021 (DKK 1,255.2 million in Q1 2020)
Operational EBIT	 Operational EBIT** of DKK 223,5 million in Q1 2021 (DKK 248,1 million in Q1 2020)
Cash Flow	 Cash flow from operations of DKK 137 million in Q1 2021 (DKK 365 million in Q1 2020)
Segments	 Positive operational EBIT for FO segments, but negative for SCT
	 Paid out dividend of DKK 3.65 per share for 2020
Dividends
	) Including internal sales of 23,213 tonnes in Q1 2021 (14,317 tonnes in Q1 2020) *) EBIT aligned for fair value adjustments of biomass, onerous contracts provisions, income from associates and revenue tax

SUMMARY OF THE QUARTER

(DKK million)	Q1 2021	Q1 2020
Operating revenue	1.176	1.255
Operational EBITDA	354	367
Operational EBIT	224	248
Profit for the period	408	-148
Operational EBITDA margin	30,1%	29,2%
Operational EBIT margin	19,0%	19,8%
Operational EBIT/Kg (Farming FO) (NOK)	14,10	26,51
Operational EBIT/Kg (Farming FO and VAP) (NOK)	21,48	25,10
Operational EBIT/Kg (VAP) (NOK)	18,56	-2,97
Operational EBIT/Kg (Farming SCT) (NOK)	-1,23	5,70
EBITDA margin (Fishmeal, -oil and Feed)	15,0%	13,0%

* Operational EBIT in NOK/kg

** EBITDA margin

Group Operational EBIT was DKK 224 million in Q1 2021, compared to DKK 248 million in Q1 2020

SUMMARY OF Q1 2021

MARKETS AND SALES

SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

Fuglafjøður, A57 Faroe Islands

	Q1 2021		Q1 2020			2020			2019
salmon by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	59%	88%	68%	52%	91%	67%	56%	90%	70%	44%	93%	50%
North America	20%	9%	17%	28%	5%	19%	24%	5%	17%	24%	4%	21%
Asia	9%	2%	7%	14%	0%	8%	12%	1%	7%	23%	2%	21%
Eastern Europe	12%	0%	8%	6%	1%	4%	8%	0%	5%	9%	1%	8%
Rest of world	0%	0%	0%	0%	3%	1%	0%	3%	1%	0%	0%	0%
Fresh salmon only	Q1 2021			Q1 2020			2020			2019
by markets	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total	FO	SCT	Total
Western Europe	39%	88%	61%	21%	91%	59%	31%	90%	64%	25%	93%	37%
North America	30%	9%	21%	48%	5%	24%	38%	5%	20%	29%	4%	25%
Asia	16%	2%	10%	21%	0%	9%	19%	1%	9%	33%	2%	28%
Eastern Europe	16%	0%	9%	10%	1%	5%	12%	0%	5%	12%	1%	10%

Contract share FO, VAP products [% of qty] 38% 51% 47% 29% 62% 49% 53% 71% 0% 20% 40% 60% 80% 100% Q1 2021 Q1 2020 2020 2019 VAP on contract HOG, Spot

Average spot prices decreased y/y but increased q/q in Q1 2021 (NOK/KG)

Increasing spot prices during the quarter

Global harvest grew 14% y/y

Change in global market [volume harvested and market price]

Source: Kontali

DEVELOPMENT IN HARVESTED AND SOLD QUANTITY BY ORIGIN (HEAD ON GUTTED – HOG)

• Total quarterly supply up 16%
• European harvest up 18%
  • Strong growth in all origins
• 7% increase in American harvest
  • 8% increase in Chile
    • Good productivity and high average harvest weights
  • 10% increase in Canada
• Inventory build-up primarily relates to Chile

SUPPLY DEVELOPMENT	Q1 2021	Q1 2020	Change %
Norway	317	274	15.8 %
UK	36	29	23.4 %
Faroes	20	16	30.6 %
Iceland	11	8	46.4 %
Ireland	2	1	68.8 %
Total Europe	386	327	18.1 %
Chile	182	169	8.1 %
Canada	28	25	10.4 %
USA	3	5	-38.0 %
Total Americas	213	198	7.4 %
Other	23	18	24.9 %
Total (Harvested quantity)	622	543	14.4 %
Inventory movements	-4	-11	-62.8 %
Total (Sold Quantity)	618	533	15.9 %

Source: Kontali

High elasticity in Europe

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

• Large retail share compared to other markets
• High campaigns activity
• Signs of strong US demand
  • High volumes cleared at good prices
  • Miami UB at level with Q1 2020
• 36% growth in Russia
  • Import of frozen products from Chile

24% increase in Japan

• Increased supply from Norway and Chile
• 15% drop in Greater China
  • Limited access to large fish
  • Covid-19 related disconnect between clients and exporters
• Continued increase in Latin America

	Estimated volumes		Q1 comparison		Estimated volumes		FY comparison
Markets	Q1 2021E	Q1 2020E	Volume	%	FY 2020E	FY 2019	Volume	%
EU+UK	266,400	221,100	45,300	20%	1,070,000	1,017,300	52,700	5%
USA	135,800	122,000	13,800	11%	506,400	468,600	37,800	8%
Russia	22,100	16,300	5,800	36%	78,200	78,600	-400	-1%
Japan	16,500	13,300	3,200	24%	64,000	52,800	11,200	21%
Greater China	21,200	25,000	-3,800	-15%	101,700	133,700	-32,000	-24%
ASEAN	21,000	18,100	2,900	16%	73,100	72,100	1,000	1%
Latin America	50,600	42,500	8,100	19%	168,800	163,600	5,200	3%
Ukraine	7,700	4,300	3,400	79%	23,600	20,600	3,000	15%
Other markets	76,400	70,200	6,200	9%	301,000	292,100	8,900	3%
Total all markets	617,700	532,800	84,900	15.9 %	2,386,800	2,299,400	87,400	3.8 %

Comments:

EU+UK incl. estimates for both European Union (Post-Brexit) & United Kingdom (England, Scotland, Wales & Northern Ireland). Greater China = China / Hong Kong / Taiwan (incl. estimated re-export from Vietnam & Thailand) ASEAN = Association of Southeast Asian Nations (estimated re-export from Vietnam & Thailand subtracted) Latin America (including both Mexico and Caribbean + domestic consumption in Chile) All figures above are in tonnes hog, and are rounded to the nearest 100 tonnes.

SHORT TERM SUPPLY OUTLOOK

• Expectation of drop in global harvest next 12 months
• Stable growth around 8% in Europe rest of 2021
  • Drop expected in Q1 2022
• Strong drop expected in Americas
  • Driven by Chile
  • Temporary low smolt release 2H 2019/1H 2020

SUPPLY - EUROPE SUPPLY - AMERICAS

Note: Supply does not take movement of inventory into account

Source: Kontali

SUMMARY OF Q1 2021 MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

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

Harvest Volumes tonnes (HOG)	Q1 2021	Q1 2020
FO - North Region	11.422	6.265
FO - West Region	2.458	2.769
FO - South Region	145	1.633
FO – Total	14.025	10.667
SCT	7.002	7.268
Total (FO & SCT)	21.027	17.935

Sea water Temperatures at 18m depth in the Faroe Islands

FARMING – OPERATIONAL PERFORMANCE

LOWER OPERATIONAL EBIT, BUT HIGHER OPERATING REVENUE

Farming FO (DKK million)	Q1 2021	Q1 2020
Operating revenue	645	633
Operational EBIT	143	203
Operational EBIT margin	22%	32%

Farming SCT (DKK million)	Q1 2021	Q1 2020
Operating revenue	322	412
Operational EBIT	-6	30
Operational EBIT margin	-2%	7%

FARMING – OPERATIONAL PERFORMANCE

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

2021 2020

(NOK/kg)	Q1 2021
		FO			SCT
	North	West	South	Total	Total
Op. EBIT/kg gw	16.49	3.63	3.48	14.10	-1.23

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

• FO: Good biological performance in the quarter, good growth and low mortality.
• SCT: Improved growth rate, feed convertion rate and size on harvested fish. Smolt size still low – and high costs.

Market: Market conditions still affected by Covid-19

VALUE ADDED PRODUCTS (VAP) STRONG QUARTER WITH HIGHER VOLUMES AND IMPROVED RESULTS

(DKK million)	Q1 2021	Q1 2020
Operating revenue	300	274
Operational EBIT	75	-11
Operational EBIT margin	25%	-4%
VAP transferred from Farming FO volumes (tgw)	5,265	5,408
VAP produced volumes (tgw)	5,576	5,066

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

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

(DKK million)	Q1 2021	Q1 2020
Operating revenue	322	310
EBITDA	48	40
EBITDA margin	15%	13%
Feed sold (tonnes)*	23,717	19,123
Fishmeal sold external (tonnes)	7,206	11,772

* Including internal sales, corresponding to 97,9% of feed volumes in Q1 2021 (Q1 2020: 74,9%)

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

MARKET CONDITIONS FEED SIGNIFICANT INCREASE IN FEED SALES

Total feed sales increased (tonnes)

23,717 (Q1 2021) 19,123 (Q1 2020) 24%

External feed sale decreased (tonnes)

504 (Q1 2021) 4,806 (Q1 2020) -89%

Volumes of raw material purchase and feed sale [tonnes] Raw material (tonnes) Feed sale (tonnes) 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 0 20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000 180.000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Raw material Internal feed sale Total feed sale

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

Source: Holtermann

Market fluctuations

The fishmeal price increased while the fish oil price decreased in Q1 2021, compared to the previous quarter

SUMMARY OF Q1 2021 MARKETS AND SALES SEGMENT INFORMATION

FINANCIALS & ESG

OUTLOOK

APPENDIX

GROUP PROFIT AND LOSS LOWER REVENUE, REDUCED OPERATIONAL EBIT AND PROFIT

(DKK million)	Q1 2021	Q1 2020
Operating revenue	1,176	1,255
Operational EBITDA	354	367
Operational EBIT	224	248
Fair value adjustment of biological assets	285	-411
Onerous contracts	0	0
Income from associates	1	0
Revenue tax	-20	-19
EBIT	489	-182
Net financial items	4	1
EBT	493	-181
Taxes	-86	33
Profit for the period	408	-148
Operational EBITDA margin	30.1%	29.2%
Operational EBIT margin	19.0%	19.8%
Operational EBIT/kg (Farming FO and VAP) (NOK)	21.48	25.10
Operational EBIT/kg (Farming SCT) (NOK)	-1.23	5.70
EBITDA margin (fishmeal, oil and feed)	15.0%	13.0%

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

OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE**

Operational EBIT* (mDKK)

2017	2018	2019	2020	2021
1,378	1,075	1,325	622	224

Adjusted EPS** (DKK)

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

**) Earnings per share adjusted for fair value of biomass, onerous contracts provisions and tax and these.

BALANCE SHEET

(DKK million)	Q1 2021	End 2020
Intangible assets	4,493	4,493
Property, plant and equipment	4,406	4,221
Right of use assets	338	353
Financial assets	123	122
Long -term receivables	8	8
Deferred tax assets	0	27
Biological assets	2,441	2,117
Inventory	772	776
Receivables	549	490
Other receivables	61	134
Cash and cash equivalents	374	467
Total Assets	13,564	13,208
Equity	9,180	8,729
Deferred tax and other taxes	1,288	1,222
Long -term interest -bearing debt	2,312	2,220
Long -term leasing debt	236	265
Financial derivatives	5	11
Short -term leasing debt	143	131
Accounts and other payables	400	629
Total Equity and Liabilities	13,564	13,208

CASH FLOW

(DKK million)	Q1 2021	Q1 2020
Cash flow from operations	137	365
Cash flow from investments	-268	-101
Cash flow from financing	37	-773
Net change in cash	-93	-509
Cash at the end of the period	378	467
Undrawn facilities	1,487	2,465

NIBD was increased by:

• Net investments (mDKK 268)
• Change in working capital (mDKK 228)

NIBD was decreased by:

Cash flow, operating activities (mDKK -310)

Development in NIBD in DKK millions

NIBD and available funding

Financing end Q1 2021

• NIBD: DKK 1,939 million
• Bank facilities of EUR 463 million, and an accordion of EUR 150 million.
• Undrawn credit facilities: DKK 1,487 million

Q1 ESG UPDATE

Healthy Living Plan

We believe that by investing in the health of our business, our people, our salmon, the environment and the communities in which we operate, we will enable healthy living for millions of people globally.

See more by visiting www.bakkafrost.com/sustainability

UN SUSTAINABLE DEVELOPMENT GOALS Bakkafrost is contributing towards to the achievement of the UN SDGs through the Healthy Living Plan.

Bakkafrost was nominated for two awards at edie Sustainability Leaders Awards in February

Electrification of sea barges with 5.6 km sea cable

Bakkafrost has signed a contract to build a fully electric workboat

Continue funding the research project about sea trout

Participate in the DigiHeart research project, to better understand the heart health status of the salmon

Extended the sponsorship of the Faroese men's national football team

SUMMARY OF Q1 2021 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG

OUTLOOK

APPENDIX

OUTLOOK

Market

• Global harvest increased 14.4% in Q1 2021 vs Q1 2020
• 1-2% decrease expected in global harvest in Q2 2021
• Zero growth in global harvest expected in H2 2021
• 5% increase in global supply expected in 2021.

Farming

• In 2021, Bakkafrost expects to harvest HOG 106,000 tonnes (Faroe Islands: 66,000 tonnes and Scotland: 40,000 tonnes)
• In the Faroe Islands, Bakkafrost expects to release around 14.5 million smolts in 2021
• In Scotland, Bakkafrost expects to release around 11.0 million smolts in 2020

Contracts

• For 2021, Bakkafrost has signed contracts for around 28% of the total expected harvest volumes in the Faroe Islands and Scotland
• Bakkafrost strategy is to allocate around 40% of expected harvested volumes at commitments and contracts at any time

Fishmeal, Oil and Feed

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

Business development / Investment programme

• Pursuing sustainable organic growth
• For the period 2020 2022, ~DKK 1.8 billion will be invested in the Faroe Islands
• In Scotland, the yearly investments for 2020-2024 are expected to be around DKK 350-400 million per year
• Capital Markets Day will be held on 14-15 September 2021

SUMMARY OF Q1 2021 MARKETS AND SALES SEGMENT INFORMATION FINANCIALS & ESG OUTLOOK

APPENDIX

LAND BASED FARMING EXPANSION TO 14 KT

S16 Glyvradalur capacity expansion in progress

In operation in 2023 1.9kt ~ 3.8m smolt á 500g

S03 Norðtoftir capacity expansion in progress

• In operation in 2023
  • 2.8kt ~ 5.3m smolt á 500g

S24 Strond capacity expansion finalised

• Now in full operation ~ 9m smolt á 500g
• 10 unrelated departments, building of 320m x 80m

FS1336 Applecross, Scotland

Expected to be in operation in 2023 2.8kt ~ 11m smolt á 250g

Total consent has increased by 11.6% (7,742 tonnes) since the acquisition in Q4 2019

Total consent is 74,765 tonnes in 44 farming sites:

North: 24 sites / 44,415 tonnes consent

• Uist, 5 sites
• Sky & mainland, 6 sites
• Loch Roag, 7 sites
• East Lewis & Harris, 6 sites

South: 20 sites / 30,350 tonnes consent

• Mull and Gigha, 6 sites
• Loch Striven and Arran, 4 sites
• Loch Fyne, 10 sites

SCOTLAND – STRATEGIC RATIONALE

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

Harris and Lewis,Scotland

3. Potential for significant improvement

• Scottish Salmon profitability to improve over a five-year period through transfer of best practices
• Synergies
• Targeted investment programmes

4. Financially attractive

Acquiring the business at a reasonable value, multiple to the sector and Bakkafrost

FAROE ISLANDS - GROWING TO 100KT SUPERIOR BIOLOGY COMBINED WITH STATE-OF-THE-ART INFRASTRUCTURE

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

DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN

Expected supply growth in 2021

• 6% growth in Global supply
• 11% growth in European supply
• -7% growth in supply from Americas

Global Supply of Atlantic Salmon (head on gutted - HOG)
	2017	2018	2019	2020E	2021E
Norway	1,078	1,129	1,198	1,223	1,334
UK	159	137	171	160	184
Ireland	15	13	14	14	13
Iceland	11	12	22	27	43
Faroes	72	64	78	72	90
Total Europe	1,336	1,355	1,484	1,496	1,663
Chile	490	598	601	657	608
Canada	123	131	124	124	122
USA	20	17	19	18	14
Total Americas	633	747	744	798	744
Others	67	67	72	92	111
Total (Sold Quantity)	2,035	2,169	2,300	2,387	2,518
Supply growth - Global	2%	7%	6%	4%	6%
Supply growth - Europe	4%	1%	10%	1%	11%
Supply growth - Americas	-3%	18%	0%	7%	-7%

Salmon Markets (head on gutted - HOG)

	2017	2018	2019	2020E	2021E
EU+UK	918	949	1,017	1,070	1,152
USA	402	436	469	506	517
Japan	57	54	53	64	63
Russia	70	89	79	78	86
Others	588	641	682	668	700
Total (Sold Quantity)	2,035	2,169	2,299	2,387	2,518

Comments: All figures are in hog-equivalents and thousand tonnes.

Figures represents sold quantity of Atlantic Salmon from each producing country

Source: Kontali

Q1 2021 MARKET ENVIRONMENT

Increased market prices despite of

• Strong supply growth
• Continued low food service demand (Covid-19)
• Nasdaq Norway price EUR 5.1 in Q1 2021
  • 23% down vs. Q1 2020
  • 26% up vs. Q4 2020
• Urner Barry East Coast price outperformed other markets
  • 14% down vs. Q1 2020
  • 13% up vs. Q4 2020

MARKET CURRENCY	Q1 2021	Q1 2020	Change %
Nasdaq Norway (EUR)	5.10	6.59	-22.6 %
UB North East US 14-16lb HOG (USD per kg)	7.98	9.25	-13.7 %
DKK	Q1 2021	Q1 2020	Change %
Nasdaq Norway	37.90	49.20	-23.0 %
UB North East US 14-16lb HOG (per kg)	49.26	62.67	-21.4 %

PRICE NORWAY

PRICE US – NORTH EAST

Source: Kontali

DEVELOPMENT PER QUARTER

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
(mDKK)	2019	2019	2019	2019	2020	2020	2020	2020	2021
Revenue	964	947	996	1,605	1,255	1,134	1,123	1,183	1,176
Operational EBIT	268	339	303	415	248	182	103	89	224
Profit/Loss	213	189	181	220	-148	472	177	-38	408
Harvest FO (tgw)	13,707	12,609	12,938	17,930	10,667	12,941	11,135	15,957	14,025
Harvest SCT (tgw)				7,925	7,268	7,937	10,476	9,305	7,002
Op. EBIT Farming FO & VAP (NOK/kg)	21.99	31.31	26.25	28.25	25.10	15.34	15.24	12.92	21.48
Op. EBIT Farming FO (NOK/kg)	21.86	31.31	23.61	25.49	26.51	9.79	12.43	5.66	14.10
Op. EBIT VAP (NOK/kg)	0.37	-0.01	9.23	11.72	-2.78	11.19	5.87	17.05	18.56
Op. EBIT Farming SCT (NOK/kg)				3.09	5.70	5.36	-3.89	-8.41	-1.23
Equity ratio	70%	65%	68%	65%	66%	69%	68%	66%	68%
NIBD	522	744	-1,271	1,019	988	1,116	1,257	1,753	1,939

BAKKAFROST / Q1 2021 PRESENTATION Page 36

Dividend

• The dividend for 2020 of DKK 3.65 (NOK 4,96) per share was paid out on 30 April 2021.
• Dividend payment equals 59% of adjusted EPS.

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*

Dividend per share (DKK)***

Facilities and locations

FAROE ISLANDS

• 18 islands – 1,387 km²
• 53,108 inhabitants (March 2021)
• Home rule – within the Kingdom of Denmark
• Part of the Danish monetary union, Danish krone (DKK)

Key sectors (% of wage earners, M12 2020)

• Service/public admin.: ~35%
• Private service: ~32%
• Construction: ~16%
• Fish & aquaculture: ~18%
• Unemployment rate (November 2020): 1.4%
• Total working force (December 2020): 27,691
• GDP: DKK ~20.5bn (2019e)
• GDP/capita: DKK 394,000 (2019e)
  • (Norway: DKK 463,000) (2017)

Total export of fish products (2019)

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

TAXES

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

Restriction on single foreign ownership of 20% in farming companies

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

Source: Hagstova Føroya

BAKKAFROST / Q1 2021 PRESENTATION Page 41