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Mowi ASA

Investor Presentation • Apr 30, 2014

3665_rns_2014-04-30_dfa07780-4a80-43e1-a63b-052bba3d6be4.pdf

Investor Presentation

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Marine Harvest Q1 2014 Presentation

Forward looking statements

This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest's contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capacity, expectations of the completion and capacity of our fish feed plant, trends in the seafood industry, including industry supply outlook, exchange rate and interest rate hedging policies and fluctuations, dividend policy and guidance, asset base investments, capital expenditures and net working capital guidance, NIBD target, cash flow guidance and financing update, guidance on financial commitments and cost of debt and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Marine Harvest's business and results. These statements speak of Marine Harvest's plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties.

Our registration statement on Form 20-F filed with the US Securities and Exchange Commission in 2014 contain information about specific factors that could cause actual results to differ, and you are urged to read them. Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today.

Highlights

  • Record high operational EBIT of NOK 1,090 million
  • All time high prices in Norway and Canada
  • Result partly offset by contract coverage and high costs in Norway
  • Agreement to divest UK farming assets to meet EC remedies
  • Proceeds of GBP 122.5m expected
  • Partial refinancing through issuance of EUR 375m convertible bond
  • Favourable terms
  • Quarterly dividend of NOK 5 per share proposed to AGM

Key financials

Ma
in
Ha
Gr
in
f
ig
t
r
e
rv
es
ou
p
- m
a
ur
es
O
N
K m
illio
n		 Q
1.
1
4		 Q
1.
1
3		 2
0
1
3
Op
ion
l re
d o
he
inc
t
t
era
a
ve
nu
e a
n
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om
e		 5
8
6
8		 3
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3
6		 1
9
2
3
0
Op
ion
l
E
B
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T
t
1)
era
a		 1
0
9
0		 4
8
2		 3
2
1
2
Ca
f
fro
h
low
ion
t
s
m
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era
s		 1
2
1
1		 3
5
1		 2
0
2
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(
)
Ne
in
be
ing
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ar		 5
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7
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1
2)
S
(
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)
Un
de
ly
ing
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3)
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(
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)
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as
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4)
O
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E		 1.
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1.
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%		 0.
7
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%		 5.
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-
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%
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d w
ig
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)
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,		 9
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3
5		 3
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7
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5)
Op
ion
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E
B
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N
O
K
kg
t
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No
rw
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6.
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9
2.
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2
-

1) Excluding change in unrealised gain/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provision, results from associated

companies, restructuring cost and write-downs of fixed assets/intangibles and other non-operating items

2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate

3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects

4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustments of biomass, onerous contracts provision and other

non-operating items/ average NIBD + Equity, excluding fair value adjustments of biomass, onerous contracts provision and net assets held for sale,

unless there are material transactions in the period

5) Operational EBIT per kg including allocated margin from Sales and marketing (from own salmon)

Record high prices in Europe

  • Global supply growth ~4%
  • Strong prices in all markets
  • Price of Canadian salmon in Seattle outperformed Chilean salmon in Miami

Note: Q1 2014 average price achievement is measured versus reference prices in all markets (Norway/Faroes (NOS), Scotland (NOS+ NOK 3.58), Canada (UB Seattle), 6 Chile (UB Miami)

Norway

  • All time high prices in the quarter
  • Adverse impact by sales contracts and high costs in the quarter
  • Successive costs reduction expected for remainder of the year
  • High sea lice awareness

Norway: Sales contract portfolio

Note: Marine Harvest Norway's fixed price/fixed volume contracts with third party customers and MH's processing entities. MH's processing entities covers a large 8 proportion of their sales exposure through third party end product contracts.

Norway: Operational EBIT/kg per region

S
A
L
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
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K m
illio
n		 Q
1
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0
1
4		 Q
1
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0
1
3
i
l
E
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7
H
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8
O
i
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u		 9
3
%
6
4
%
9
%
5		 9
1
%
6
1
%
9
4
%
  • Price achievement impacted by the generally high contract coverage
  • High costs in the quarter
  • High feed costs
  • Sea lice and AGD mitigation
  • Good biological status at present
S
C
A
L
M
O
N
O
F
A
N
A
D
I
A
N
O
R
I
G
I
N
NO
K m
illio
n		 Q
1
2
0
1
4		 Q
1
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1
3
O
i
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E
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a		 1
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1
H
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9.
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1		 0.
8
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0		 0.
0
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0
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-
Ex
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%		 1
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%
C
t
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a
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%		 3
%
S
i
h
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r
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r
s
a
r
e		 7
6
%		 8
3
%
  • Very strong result in the quarter
  • Temporary exit from areas with Kudoa impacts volumes in 2014
  • Q1 typically the strongest quarter in Canada
  • Increased costs expected for the remainder of the year

SALMON OF CHILEAN ORIGINNOK million Q1 2014 Q1 2013Operational EBIT 119 - 52 Harvest volume 17 741 8 259Operational EBIT per kg 6.73 -6.27 - of which MH Markets 0.95 -0.50- of which MH VAP Europe -0.01 0.00 - of which Morpol 0.00 na Exceptional items incl in op. EBIT -1 -3 Exceptional items per kg -0.08 -0.37 Price achievement/reference price 103% 94%

Chile

  • Result positively impacted by high prices in the quarter
  • Costs remain at very high level

Contract coverage 29% 39% Superior share 84% 82%

  • USD 4.7 (USD 4.9 in Q1 2013)
  • Salmosan approved in Chile and this has temporarily relived some of the pressure on biology
  • Structural issues remain and causes long term uncertainty

Ireland and Faroes

S
A
L
M
O
N
O
F
I
R
I
S
H
O
R
I
G
I
N
NO
K m
ill
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1
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4		 Q
1
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1
3
O
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a		 4 1
8
H
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S
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1
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%
9
7
%		 9
7
%
1
4
%
9
5
%

Value Added Products Europe (VAP Europe)

M
H
V
A
P
E
U
R
O
P
E
NO
K m
illio
n		 Q
1
2
0
1
4		 Q
1
2
0
1
3
O
i
t
p
e
r
a
n
g
r
e
v
e
nu
e
s		 1
1
3
5		 9
0
5
i
l
E
B
I
T
O
t
p
e
r
a
o
n
a
O
i
l
E
B
I
T
%
t
p
e
r
a
o
n
a		 5
2
-
2.
2
%
-		 1
8
-
2.
0
%
-
V
lu
l
d
(
d
i
h
)
t
t w
t
o
m
e
s
o
o
n
s
p
r
o
c
e
g
u
Ex
i
l
i
t
t
c
e
p
o
n
a
e
m
s		 1
4
0
4
9
0		 1
3
3
8
5
0
V
lu
h
l
o
m
e
s
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r
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s
a
m
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n
R
h
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s
a
r
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s
m
a
r
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n
s
a
r
e
s
a
m
o
n		 6
2
%
7
1
%
2
%
5		 5
8
%
6
5
%
1
%
5
  • Poor performance in the quarter
  • Inability to fully pass through high raw material costs
  • High structural costs being addressed
  • Restructuring programme will yield improvements from 2H 2014
C
S
S
M
O
R
P
O
L
P
R
O
E
I
N
G
N
O
K
i
l
l
io
m
n		 Q
1
2
0
1
4		 Q
1
2
0
1
3
O
i
t
p
e
r
a
n
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r
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v
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nu
e
s		 1
0
3
4		 n
a
O
i
l
E
B
I
T
t
p
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r
a
o
n
a		 3
8
-		 n
a
O
i
l
E
B
I
T
t
%
p
e
r
a
o
n
a		 3.
7
%
-		 n
a
V
lu
l
d
(
d
i
h
)
t
t w
t
o
m
e
s
o
o
n
s
p
r
o
u
c
e
g		 1
1
3
5
8		 n
a
Ex
i
l
i
t
t
c
e
p
o
n
a
e
m
s		 0 n
a
V
lu
h
l
o
m
e
s
a
r
e
s
a
m
o
n
R
h
l
e
e
nu
e
s
a
r
e
s
a
m
o
n
v		 9
2
%
8
9
%		 n
a
n
a
  • Inability to fully pass through high raw material costs
  • ~80% raw material purchased in the spot market
  • Good operational performance
  • Break even raw material price remains at NOK ~44 for Q2 2014

Fish feed project proceeding according to plan

  • 220 thousand tonnes capacity 60% of MHG requirement in Norway(1)
  • ~NOK 800m investment Completion June/July 2014

Notes: (1) Based on 2014 harvest volume estimate

First Quarter 2014 Financials, Harvest Volumes and Markets

Profit and Loss

Ma
ine
Ha
Gr
t
r
rve
s
ou
p
NO
K m
illio
n		 Q
1.
1
4		 Q
1.
1
3		 2
0
1
3
Op
ion
l re
d o
he
inc
t
t
er
a
a
ve
nu
e a
n
r
om
e		 5
8
6
8		 3
7
3
6		 1
9
2
3
0
Op
ion
l
E
B
I
T
t
1)
er
a
a		 1
0
9
0		 4
8
2		 3
2
1
2
Un
l
ise
d g
ins
lm
de
iva
ive
t
rea
a
on
sa
on
r
s
Fa
ir v
lue
d
j
b
io
log
ica
l a
tm
t o
ts
a
a
us
en
n
ss
e
On
is
ion
ntr
ts
ero
us
co
ac
p
rov
s
Re
ing
tru
tur
ts
s
c
co
s
No
ion
l
leg
l
iss
t
n-o
p
era
a
a
ue
s
Inc
/
los
fro
ia
d c
ies
te
om
e
s
m
as
so
c
om
p
an
Im
irm
los
t
p
a
en
se
s		 3
2
0
8
-
8
7
0
0
1
4
0		 1
7
6
4
4
1
8
-
0
0
4
3
1		 3
0
-
1
7
9
5
1
2
5
-
2
7
3
-
7
4
-
2
2
2
6
5
-
E
B
I
T		 9
8
6		 1
1
6
8		 4
6
6
2
Ne
f
ina
ia
l
ite
t
nc
ms		 2
2		 1
6
5
-		 1,
2
0
4
-
Ea
ing
be
fo
tax
rn
s
re		 1
0
0
8		 1
0
0
2		 3
4
5
7
Pr
f
i
los
fo
he
io
d
t o
t
o
r
s
r
p
er		 7
6
6		 5
7
3		 5
2
2
2
2)
S
(
O
)
Un
de
ly
ing
E
P
N
K
r
3)
f
(
O
)
Ne
h
low
ha
N
K
t c
as
p
er
s
re		 1.
8
0
1.
7
5		 0.
7
0
0.
1
9
-		 5.
3
6
0.
3
8
-
Op
ion
l
E
B
I
T m
in
t
era
a
arg
O
G
(
)
Ha
t v
lum
H
ton
lm
i
ds
rve
s
o
e,
s
sa
on
Op
ion
l
E
B
I
T p
kg
inc
l m
in
fro
Sa
les
d
Ma
ke
ing
t
t
5)
era
a
er
arg
m
an
r
4)
O
C
R
E		 1
8.
6
%
9
2
2
4
3
1
2.
0
5
2
1.
5
%		 1
2.
9
%
8
0
0
3
5
6.
6
3
1
4.
0
%		 1
6.
7
%
3
4
3
7
7
2
9.
7
5
1
8.
5
%

1) Excluding change in unrealised gain/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provision, results from associated

companies, restructuring cost and write-downs of fixed assets/intangibles and other non-operating items

2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate

3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects

4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustments of biomass, onerous contracts provision and other

non-operating items/ average NIBD + Equity, excluding fair value adjustments of biomass, onerous contracts provision and net assets held for sale,

unless there are material transactions in the period

5) Operational EBIT per kg including allocated margin from Sales and marketing (from own salmon)

Financial Position

marineharvest
--------------- -- -- -- --
Ma
in
Ha
Gr
t
r
e
rv
es
ou
p
N
O
K m
i
l
l
ion		 3
1.
0
3.
2
0
1
4		 3
1.
0
3.
2
0
1
3		 3
1.
1
2.
2
0
1
3
No
t a
ts
n-c
ur
re
n
ss
e		 1
6
4
5
9		 1
4
6
6
5		 1
6
4
9
7
Cu
t a
ts
rre
n
ss
e		 1
5
2
3
4		 1
0
2
4
1		 1
6
1
7
2
As
he
l
d
fo
le
ts
se
r s
a		 1
1
4
1		 0 1
0
5
9
To
l a
ta
ts
ss
e		 3
2
8
3
4		 2
4
9
0
6		 3
3
7
2
8
Eq
i
ty
u		 1
6
3
9
9		 1
2
5
6
4		 1
6
3
4
6
No
l
ia
b
i
l
i
ies
t
t
n-c
ur
re
n		 1
1
9
8
8		 9
6
7
4		 1
2
0
5
1
Cu
l
ia
b
i
l
i
ies
t
t
rre
n		 4
2
6
0		 2
6
6
8		 1
4
0
5
fo
L
ia
b
i
l
i
ies
he
l
d
le
t
r s
a		 1
8
7		 0 1
9
0
To
l e
i
d
l
ia
b
i
l
i
ie
ta
ty
t
q
a
n
s
u		 3
2
8
3
4		 2
4
9
0
6		 3
3
7
2
8
Ne
in
be
ing
de
b
t
te
t-
t
res
ar		 7
5
1
1		 6
3
1
4		 7
7
9
1
/
N
I
B
D
i		 4
5.
8
%		 5
0.
3
%		 4
7.
7
Eq
ty
u		 %
Eq
i
io
ty
t
u
ra		 4
9.
9
%		 0.
4
%
5		 4
8.
%
5

NIBD/Equity within target of less than 50%

Cash Flow and Net Interest Bearing Debt

Ma
ine
Ha
Gr
t
r
rve
s
ou
p
NO
K m
illio
n		 Q
1.
1
4		 Q
1.
1
3		 2
0
1
3
N
I
B
D
be
inn
ing
f p
io
d
g
o
er		 7
7
9
1
-		 5
3
8
1
-		 5
3
8
1
-
Op
ion
l
E
B
I
T
D
A
t
era
a		 1
3
1
6		 6
5
2		 3
9
5
7
C
ha
in
k
ing
i
l
ta
ng
e
wo
r
ca
p		 2
-		 2
9
6
-		 1
7
4
9
-
Ta
i
d
xe
s p
a		 9
6
-		 1
7
-		 1
1
6
-
O
he
d
j
t
tm
ts
r a
us
en		 7
-		 1
2		 8
7
-
Ca
h
f
low
fro
ion
t
s
m
op
er
a
s		 1
2
1
1		 3
5
1		 2
0
2
3
Ca
p
ex		 5
3
7
-		 4
1
1
-		 -1
9
0
2
O
he
inv
t
tm
ts
r
es
en		 2 6
7
5
-		 5
7
2
-
Ca
h
f
low
fro
inv
tm
ts
s
m
es
en		 3
7
3
-		 1
0
8
6
-		 2
4
7
3
-
Ne
in
d
f
ina
ia
l
i
i
d
t
ter
t a
tem
es
n
nc
s p
a		 8
6
-		 1
3
3
-		 5
3
1
-
O
he
i
t
tem
r
s		 6
0
-		 4
7		 1
6
2
-
Bo
ds
d
i
te
to
ty
n
co
nve
r
eq
u		 0 0 1
7
8
3
D
iv
i
de
d
d
is
i
bu
d
tr
te
n		 5
1
0
-		 0 8
2
5
-
N
I
B
D
fro
l
i
da
ion
f
Mo
l
t
m
co
ns
o
o
rp
o		 0 0 1
6
8
1
-
Ne
i
i
d-
in
/
Pu
ha
ha
t e
ty
q
u
p
a
rc
se
ow
n s
res		 0 0 0
Tra
la
ion
f
fec
in
be
ing
de
b
t
t o
ter
t-
t
ns
e
n
es
ar		 9
8		 1
1
3
-		 5
4
3
-
N
I
B
D
d o
f p
io
d
en
er		 5
1
1
7
-		 6
3
1
4
-		 9
1
7
7
-
1):
De
b
d
is
i
bu
ion
t
tr
t
E
U
R		 6
4
%		 6
4
%		 6
2
%
S
U
D		 1
3
%		 1
3
%		 1
4
%
G
B
P		 7
%		 4
%		 4
%
O
he
ies
t
r c
urr
en
c		 1
6
%		 1
9
%		 2
0
%

(1) Debt distribution including effect of cross currency swaps.

(2) Currency effect on debt in Q1 is NOK 98 million.

2014 Cash Flow Guidance

  • 2014 cash flow estimates
  • Working capital buildup NOK 800m
  • Requirements for commencing operations in feed plant
  • Organic growth farming – Scotland and Canada
  • Capital expenditures NOK 1,700m
  • NOK 1,000m Maintenance
  • NOK 500m – Structural investments – organic growth and strengthen assets
  • NOK 200m Feed plant in Norway
  • Interest expenses NOK 360m (run rate of ~NOK 300m)
  • Tax payables NOK 250m
  • Quarterly dividend of NOK 5.0 per share
  • 2014 NIBD target set to NOK 7 500 million (NOK 15 per kg Farming)

Due to seawater growth patterns, WC is highly seasonal

Slow seawater growth in 1H leads to working capital release and high seawater growth in 2H leads to working capital build up

Overview of financing

  • EUR 775m Facility Agreement
  • Maturity – Q1 2016 (extended from Q1 2015)
  • Lenders: DNB, Nordea, Rabobank and ABN Amro
  • Covenants:
    • Declining NIBD/EBITDA(1) ratio
    • •3.25 up to Q2 2014
    • •3.00 thereafter
  • 40% equity ratio
  • Facility to be downscaled as a result of recent convertible bond issuance
  • Convertible bond
  • EUR 350 issued in May 2013
  • Tenor 5 years, annual coupon 2.375%, conversion price EUR 9.7354
  • EUR 375 issued in April 2014
  • Tenor 5 years, annual coupon 0.875%, conversion price EUR 11.7476
  • NOK 1,250m bond issued in February 2013
  • Tenor 5 years, NIBOR + 3.5%

Supply development Q1 2014

i
E
d
t
t
s
m
a
e
v		 l
o
u
m
e
s		 C
d
t
o
m
p
a
r
e		 Q
1
2
0
1
3
o		 E
l
t.
s
v
o
u
m
e
s
Q
1
2
0
1
4		 Q
1
2
0
1
3		 V
l
o
u
m
e		 % Q
4
2
0
1
3
S
l
i
p
p
e
r
s
u
N
o
r
w
a
y		 2
3
6,
0
0
0		 2
3
2,
2
0
0		 3,
8
0
0		 1.
6
%		 3
0
8,
8
0
0
C
h
i
l
e		 1
3
0,
8
0
0		 1
0
9,
4
0
0		 2
1,
4
0
0		 1
9.
6
%		 1
1
5,
7
0
0
S
l
d
t
c
o
a
n		 2
9,
8
0
0		 2
8,
4
0
0		 1,
4
0
0		 4.
9
%		 4
1,
1
0
0
N
h
A
i
t
o
r
m
e
r
c
a		 2
3,
6
0
0		 3
2,
2
0
0		 8,
6
0
0
-		 2
6.
%
7
-		 2
8,
3
0
0
F
I
l
d
a
r
o
e
s
a
n
s		 1
5,
8
0
0		 1
5,
8
0
0		 0 0.
0
%		 1
7,
4
0
0
A
l
i
t
u
s
r
a
a		 1
0,
3
0
0		 1
0,
1
0
0		 2
0
0		 2.
0
%		 9,
6
0
0
I
l
d
r
e
a
n		 1,
4
0
0		 2,
4
0
0		 1,
0
0
0
-		 4
1.
%
7
-		 2,
0
0
5
O
h
t
e
r		 3,
3
0
0		 2,
8
0
0		 5
0
0		 1
7.
9
%		 4,
1
0
0
S
m
u		 4
5
1,
0
0
0		 4
3
3,
3
0
0		 1
7,
7
0
0		 4.
1
%		 5
2
7,
5
0
0
E
u
r
o
p
e		 2
8
3,
0
0
0		 2
7
8,
8
0
0		 4,
2
0
0		 1.
5
%		 3
6
9,
8
0
0
A
i
m
e
r
c
a
s		 1
5
4,
4
0
0		 1
4
1,
6
0
0		 1
2,
8
0
0		 9.
0
%		 1
4
4,
0
0
0

Source: Kontali

  • 4% increase in global harvest volumes in line with expectations
  • 1.5% in Europe
  • 9.0% increase in the Americas

Development in reference prices

Re
fer
ice
en
ce
pr
s		 Q1
20
14
NO
K		 Ch
an
ge
vs
Q1
20
13		 Q1
20
14
Ma
rke
t (
4)		 Ch
an
ge
vs
Q
1 2
013
No
(
1)
rwa
y
Ch
(
2)
ile		 NO
K 4
6.5
6
NO
K 6
1.5
7		 31
.5%
31
.8%		 EU
R 5
.58
US
D 1
0.1
0		 17
.0%
21
.6%
No
rth
Am
eric
a (
3)		 NO
K 5
0.2
0		 52
.1%		 US
D 8
.24		 40
.4%

Notes:

(1) Average superior HOG price per kg (FCA Oslo)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 40.0 and USD 6.6 HOG

(3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb)

(4) Market price in local currency

im
Es
t
te
d
a
vo		 lu
m
es		 Co
Q
d
to
1
2
0
1
3
m
p
ar
e		 Es
t.
lu
vo
m
es		 1
2
t
h
l
l
m
on
ro		 in
g
Q
1
2
0
1
4		 Q
1
2
0
1
3		 Vo
lu
m
e		 % Q
4
2
0
1
3		 L
T
M		 P
T
M
Ma
ke
ts
r
E
U		 1
8
3,
2
0
0		 1
8
2,
3
0
0		 9
0
0		 0.
5
%		 2
3
6,
9
0
0		 8
1
4,
7
0
0		 8
2
2,
1
0
0
S
U
A		 8
8,
7
0
0		 8
3,
4
0
0		 5,
3
0
0		 6.
4
%		 8
5,
8
0
0		 3
3
8,
7
0
0		 3
2
3,
1
0
0
Ru
ia
ss		 2
9,
5
0
0		 3
3,
4
0
0		 3,
9
0
0
-		 1
1.
7
%
-		 4
5,
5
0
0		 1
4
0,
1
0
0		 1
5
1,
4
0
0
Br
i
l
as		 2
3,
5
0
0		 1
8,
0
0
0		 5,
5
0
0		 3
0.
6
%		 2
2,
4
0
0		 8
3,
1
0
0		 6
8,
9
0
0
C
h
ina
/
Ho
Ko
ng
ng		 1
7,
2
0
0		 1
3,
5
0
0		 3,
7
0
0		 2
7.
4
%		 1
7,
8
0
0		 6
6,
2
0
0		 5
6,
8
0
0
Ja
p
an		 1
2,
7
0
0		 1
0,
6
0
0		 2,
1
0
0		 1
9.
8
%		 1
7,
7
0
0		 5
5,
4
0
0		 5
4,
2
0
0
So
h
Ko
/
Ta
iw
t
u
rea
an		 6,
8
0
0		 8,
3
0
0		 1,
5
0
0
-		 1
8.
1
%
-		 8,
5
0
0		 3
0,
2
0
0		 3
5,
6
0
0
U
kra
ina		 4,
1
0
0		 6,
7
0
0		 2,
6
0
0
-		 3
8.
8
%
-		 6,
9
0
0		 2
2,
7
0
0		 2
7,
6
0
0
Su
in
ke
ts
m
m
a
m
ar		 3
6
5,
0
0
7		 3
5
6,
2
0
0		 9,
5
0
0		 2.
%
7		 4
4
1,
5
0
0		 1,
5
5
1,
1
0
0		 1,
5
3
9,
0
0
7
O
he
ke
t
ts
r m
ar		 6
8,
9
0
0		 6
6,
3
0
0		 2,
6
0
0		 3.
9
%		 8
4,
0
0
0		 2
9
4,
4
0
0		 2
6
6,
1
0
0
To
l a
l
l m
ke
ta
ts
ar		 4
3
4,
6
0
0		 4
2
2,
5
0
0		 1
2,
1
0
0		 2.
9
%		 5
2
5,
5
0
0		 1,
8
4
5,
5
0
0		 1,
8
0
5,
8
0
0
In
f
low
U
S
fro
Eu
to
m
rop
e		 2
2,
0
0
5		 1
6,
4
0
0		 6,
1
0
0		 3
2
%
7.		 2
4
0
0
5,		 8
8,
3
0
0		 6
9,
2
0
0
In
f
low
E
U
fro
C
h
i
le
to
m		 1
0,
4
0
0		 1
0,
0
0
7		 3
0
0
-		 2.
8
%
-		 9,
0
0
5		 4
0
0
0
5,		 3
0,
9
0
0

Global volume by market

EU growth somewhat lower than European supply growth

  • Very strong demand in the US markets, increased import from Europe
  • Russian consumers sensitive to current high prices
  • Generally good demand in South America and Asia

Source: Kontali

Industry supply outlook

eharvest
2
0
0
8		 2
0
0
9		 2
0
1
0		 2
0
1
1		 2
0
1
2		 2
0
1
3		 Es
im
2
0
1
4
t
te
a
s
H
O
G
(
ho
to
t
nn
es
us
an		 ds
)		 Lo
w		 /
Y
Y
h
t
g
ro
w		 H
ig
h		 /
Y
Y
h
t
g
ro
w
No
rw
ay		 6
6
7		 0
7
7		 8
0
5		 9
0
5		 1
0
6
5		 1
0
2
9		 1,
1
0
1		 %
7		 1,
1
1
5		 1
2
%
C
h
i
le		 3
6
3		 2
1
5		 1
1
7		 1
9
9		 3
2
8		 4
2
1		 4
2
6		 1
%		 4
6
5		 8
%
No
h
Am
ica
t
r
er		 1
2
5		 1
2
4		 1
2
6		 1
2
4		 1
4
0		 1
2
2		 1
1
8		 3
%
-		 1
2
5		 2
%
U
K		 1
2
3		 1
3
0		 1
2
9		 1
3
9		 1
4
3		 1
4
2		 1
4
0		 2
%
-		 1
4
7		 3
%
O
he
t
r		 6
9		 8
8		 8
9		 1
0
3		 1
2
3		 1
2
4		 1
3
0		 4
%		 1
3
7		 1
0
%
To
l
ta		 1,
3
4
7		 1,
3
2
8		 1,
3
1
0		 1,
4
7
1		 1,
7
9
9		 1,
8
3
9		 1,
9
1
4		 4
%		 2,
0
1
5		 1
0
%
Q
2
2
0
0
8		 Q
2
2
0
0
9		 Q
2
2
0
1
0		 Q
2
2
0
1
1		 Q
2
2
0
1
2		 Q
2
2
0
1
3		 E
S
T
I
M
A
T
E
S
Q
2
2
0
1
4
H
O
G
(
ho
to
t
nn
es
us
an		 ds
)		 Lo
w		 Q
/
Q
h
t
g
ro
w		 H
ig
h		 Q
/
Q
h
t
g
ro
w
No
rw
ay		 1
6
2		 1
7
6		 1
9
5		 2
0
1		 2
5
3		 2
3
0		 2
5
5		 1
1
%		 2
6
5		 1
5
%
C
h
i
le		 8
2		 4
7		 3
0		 4
0		 7
7		 9
6		 1
0
0		 4
%		 1
0
5		 9
%
No
h
Am
ica
t
r
er		 3
2		 3
3		 2
8		 2
8		 3
5		 3
2		 2
8		 1
1
%
-		 3
1		 2
%
-
U
K		 2
8		 2
9		 2
9		 3
4		 3
5		 3
4		 3
2		 5
%
-		 3
5		 4
%
O
he
t
r		 1
7		 2
0		 1
9		 2
4		 2
7		 2
9		 2
9		 1
%
-		 3
2		 9
%
To
l
ta		 3
2
1		 3
0
6		 3
0
1		 3
2
7		 4
2
8		 4
2
0		 4
4
4		 6
%		 4
6
8		 1
1
%
/
Q
3
Q
4
2
0
0
8
Q		 /
3
Q
4
2
0
0
9
Q		 /
3
Q
4
2
0
1
0
Q		 /
3
Q
4
2
0
1
1		 /
Q
3
Q
4
2
0
1
2
Q		 /
3
Q
4
2
0
1
3		 S
S
E
T
I
M
A
T
E
Q		 /
3
Q
4
2
0
1		 4
(
H
O
G
to
t
ho
nn
es
us
an		 )
ds		 Lo
w		 Q
/
Q
t
h
g
ro
w		 ig
H
h		 Q
/
Q
t
h
g
ro
w
No
rw
ay		 3
5
0		 4
3
0		 4
5
9		 5
1
4		 5
7
0		 5
6
7		 6
1
0		 8
%		 6
5
0		 1
5
%
C
h
i
le		 2
0
1		 7
6		 5
6		 1
2
5		 1
8
4		 2
1
6		 1
9
5		 1
0
%
-		 2
2
0		 2
%
No
h
Am
ica
t
r
er		 6
3		 6
1		 6
7		 6
9		 7
1		 5
8		 6
6		 1
4
%		 7
0		 2
0
%
U
K		 6
6		 4
7		 6
8		 6
7		 3
7		 8
0		 8
7		 2
%
-		 8
2		 3
%
O
he
t
r		 3
8		 4
7		 0
5		 6
5		 6
5		 6
4		 0
7		 9
%		 4
7		 1
6
%
To
l
ta		 7
1
7		 6
8
9		 7
0
1		 8
4
1		 9
6
3		 5
9
8		 1,
0
1
9		 3
%		 1,
0
9
6		 1
1
%

MHG – 2014 volume guidance

Sa
lm
ie
on
sp
ec
s
H
O
G
(
)
1
0
0
0
ton
s		 Q
1
2
0
1
3
Ac
l
tua		 Q
2
2
0
1
3
Ac
l
tua		 Q
3
2
0
1
3
Ac
l
tua		 Q
4
2
0
1
3
Ac
l
tua		 2
0
1
3
Ac
l
tua		 Q
1
2
0
1
4
Ac
l
tua		 Q
2
2
0
1
4
Es
im
t
te
a		 Q
3-
Q
4
2
0
1
4
Es
im
t
te
a		 2
0
1
4
Es
im
t
te
a
No
rw
ay
Gr
h
%
t
ow		 4
7
2
%
5
-		 5
4
1
6
%
-		 5
3
9
%
-		 6
9
2
%
-		 2
2
2
1
3
%
-		 5
5
1
%
7		 6
8
6
1
%
-		 1
4
1
1
6
%		 2
6
4
1
9
%
C
h
i
le
(
1
)
Gr
h
%
t
ow		 8
1
5
%
-		 0
1
0
0
%
-		 6
4
0
%
-		 1
4
2
8
%		 2
8
3
0
%
-		 1
8
1
1
5
%		 1
5
2
5
%
-		 2
7
3
4
%		 6
0
1
1
0
%
Ca
da
na
Gr
h
%
t
ow		 1
2
1
%
5		 9
1
6
%
-		 6
2
%
5
-		 6
4
%
7
-		 3
3
1
8
%
-		 6
4
8
%
-		 7
6
6
%
-		 1
6
3
1
%		 2
9
1
2
%
-
Sc
la
d
t
o
n
Gr
h
%
t
ow		 1
0
4
%		 1
3
1
7
%		 1
4
6
%		 1
2
7
4
%		 4
8
2
0
%		 1
0
9
%		 1
5
6
1
%
-		 2
4
6
%
-		 5
0
2
%
O
he
Un
i
t
ts
r
Gr
h
%
t
ow		 3
3
9
%
-		 4
2
%		 2
4
%
5
-		 3
3
1
%
-		 1
2
2
9
%
-		 3
4
%
-		 4
%
5
5
-		 8
6
1
%		 1
5
3
0
%
To
l
ta
Gr
h
%
t
ow		 8
0
1
7
%
-		 9
7
2
0
%
-		 8
1
1
3
%
-		 1
0
3
0
%		 3
4
4
1
2
%
-		 9
2
1
5
%		 1
0
9
5
9
%
-		 2
1
6
1
7
%		 4
1
7
2
1
%

Assets to be divested in Shetland and Orkneys are excluded from the figures

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algae blooms etc. and market developments.

  • Strong demand expected to continue
  • Forward prices of NOK 38.8 per kg for Q2-Q4 2014
  • However, higher supply growth expected for remainder of year
  • Strategic focus areas
  • Successful development of green-field feed capacity
  • Acquisitions in Norway and Chile
  • Integration of Morpol
  • High sea lice awareness in Norway Chile remains concerning
  • Risk of adverse regulatory change in Norway
  • Quarterly dividend of NOK 5 per share proposed to AGM

Appendix

Contract coverage and sales contract policy

  • Q2 2014 contract shares (% of guided volume):
  • Norway 33%
  • Scotland 46%
  • Canada 0%
  • Chile 17%
S
A
L
E
S
C
O
N
T
R
A
C
T
P
O
L
I
C
Y		 M
in
he
dg
in
(
1
)
te
g
ra		 Ma
he
dg
in
(
1
)
te
x
g
ra
(
)
(
)
No
2
3
rw
ay		 2
2.
5
%		 5
0.
0
%
C
h
i
le
(
3
)		 2
2.
5
%		 5
0.
0
%
Ca
da
na		 0.
0
%		 3
0.
0
%
Sc
lan
d
t
o		 4
0.
0
%		 0
%
7
5.
Ire
lan
d		 0.
0
%		 3
0.
0
%
Fa
roe
s		 0.
0
%		 3
0.
0
%
W
ig
h
d
te
e
av
er
ag
e		 2
2.
1
%		 5
0.
8
%

Note:

(1) Hedging rates for the next quarter, limits dropping over time

(2) External and internal contract (including financial futures)

(3) Contract rate can be increased to 65% under special circumstances

  • Contracts typically have a duration of 3-12 months
  • Contracts are entered into on a regular basis
  • Policy opens for contracts of up to 36 month duration

Development in reference prices

fer
ice
Re
en
ce
p
r
s		 Q
1 2
0
14
N
O
K		 C
ha
ng
e v
s
Q
1 2
0
13		 Q
1 2
0
14
Ma
ke
(
4
)
t
r		 C
ha
ng
e v
s
Q
1 2
0
13
No
(
)
1
rwa
y		 N
O
K 4
6.5
6		 3
1.5
%		 E
U
R 5
.5
8		 17
.0
%
C
(
)
h
i
le
2		 O
N
K 6
1.5
7		 3
1.8
%		 S
U
D
10
.10		 21
.6
%
No
h
Am
ica
(
3
)
rt
er		 N
O
K 5
0.
20		 2.1
%
5		 U
S
D 8
.24		 40
.4%

Notes:

(1) Average superior HOG price per kg (FCA Oslo)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 40.0 and USD 6.6 HOG

(3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb)

(4) Market price in local currency

Key performance indicators

Sal
nd
ark
eti
M
es
a
ng		 ark
MH
M
ets
Q
1. 1
4		 MH
VA
P E
UR
OP
E
Q
1. 1
4		 MO
RPO
L
PRO
CES
SIN
G
Q
1. 1
4
Op
tio
nal
and
oth
inc
era
rev
en
ues
er
om
e		 4 3
80		 1 1
35		 1 0
34
nal
Op
tio
EBI
T
era
in %
EBI
T
m
arg		 85
1.9
%		 ‐ 25
‐2.
2%		 ‐ 38
‐3.
7%
Q
1. 1
4		 Q
3
1. 1
(
K)
Gro
kg
NO
EBI
T p
up
er		 12.
05		 6.6
3
trib
fro
(
K)
‐ C
uti
Far
mi
NO
on
on
m
ng		 11
.81		 6.2
8
trib
uti
fro
rke
(
K)
‐ C
Ma
NO
ts
on
on
m		 0.9
2		 0.5
8
trib
fro
(
K)
‐ C
uti
VA
P
NO
on
on
m		 ‐0.
27		 ‐0.
22
trib
fro
l P
(
K)
‐ C
uti
Mo
ing
NO
on
on
m
rpo
roc
ess		 ‐0.
41		 na
olu
(
k t
s)
Gro
Ha
st V
up
rve
me
on
ne		 92
243		 80
035
tio
nal
fro
of
ori
in
(
)
Op
EBI
T
NO
K m
era
m
sou
rce
g		 1 1
11		 531
nal
fro
oth
(
)
Op
tio
EBI
T
its
NO
K m
era
m
er
un		 ‐ 2
1		 ‐ 49
tio
nal
Gro
EBI
T
up
op
era		 1 0
90		 482

Key financials

Ma
ine
Ha
Gr
in
f
ig
t
r
rve
s
ou
p -
m
a
ur
es
NO
K m
illio
n		 Q
1.
1
4		 Q
1.
1
3		 2
0
1
3
Op
ion
l re
t
era
a
ve
nu
e		 5
8
6
8		 3
3
6
7		 1
9
2
3
0
Op
ion
l
E
B
I
T
D
A
t
1)
era
a		 1
3
1
6		 6
5
2		 3
9
7
5
Op
ion
l
E
B
I
T
t
1)
era
a		 1
0
9
0		 4
8
2		 3
2
1
2
E
B
I
T		 9
8
6		 1
1
6
8		 4
6
6
2
Ne
f
ina
ia
l
ite
t
nc
ms		 2
2		 1
6
5
-		 1
2
0
4
-
Pro
f
it o
los
for
he
io
d
t
r
s
p
er		 7
6
6		 7
5
3		 2
5
2
2
Ca
f
fro
h
low
t
ion
s
m
op
era
s		 1
2
1
1		 3
5
1		 2
0
2
3
To
l a
ta
ts
ss
e		 3
2
8
3
4		 2
4
9
0
6		 3
3
7
2
8
Ne
int
be
ing
de
b
(
N
I
B
D
)
t
t-
t
ere
s
ar		 7
5
1
1		 6
3
1
4		 7
7
9
1
Ea
ing
ha
(
N
O
K
)
rn
s p
er
s
re		 1.
8
7		 1.
9
9		 6.
6
6
2)
S
Un
de
ly
ing
E
P
r		 1.
8
0		 0.
7
0		 5.
3
6
3
Ne
h
f
low
ha
(
N
O
K
)
t c
as
p
er
s
re		 1.
7
5		 -0.
1
9		 0.
3
8
-
4)
O
C
R
E		 5
2
1.
%		 1
4.
0
%		 1
8.
5
%
Eq
ity
io
t
u
ra		 4
9.
9
%		 5
0.
4
%		 4
8.
5
%
N
I
B
D
/
Eq
ity
u		 5.
4
8
%		 0.
3
%
5		 4
%
7.
7
Ha
lum
(
d w
ig
ht
lm
)
t v
tte
ton
rve
s
o
e
g
u
e
s,
sa
on		 9
2
2
4
3		 8
0
0
3
5		 3
4
3
2
7
7
5)
Op
ion
l
E
B
I
T -
N
O
K
kg
t
era
a
p
er
No
rwa
y		 1
2.
8
2		 8.
3
9		 1
0.
8
3
Sc
lan
d
t
o		 1
2.
6
6		 7.
8
7		 1
2.
4
5
Ca
da
na		 1
9.
1
0		 6.
6
3		 1
0.
1
9
C
h
i
le		 6.
7
3		 -6.
2
7		 2.
3
2
-

1) Excluding change in unrealised gains/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provisions, results from

associated companies, restructuring costs, write-downs of fixed assets/intangibles and other non-operational items.

2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate.

3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects

(Purchase of shares in M orpol ASA and gain from the investment in Cermaq ASA are not included).

4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustment of biomass, onerous contracts

provisions and other non-operational items / Average NIBD + Equity, excluding fair value adjustment of biomass,

onerous contracts provisions and, until fourth quarter, the investment in M orpol ASA,

5) Operational EBIT per kg including allocated margin from Sales and M arketing (from own salmon).

Q1 2014 segment overview

Ma
ine
H
t G
ly
ica
l
f
ig
t
r
arv
es
rou
p -
an
a
ure
s		 S
C
S
O
U
R
E
O		 F O
RIG
IN
NO
K m
illio
n		 No
rw
ay		 Sc
lan
d
ot		 Ca
da
na		 C
h
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 MH
G
rou
p
O
PE
RA
TIO
NA
L E
BIT
MH
FA
RM
IN
G		 7
20		 1
07		 1
12		 1
03		 4 4
2		 1
09
0
S
S
G
MH
AL
E
AN
D M
AR
KE
TIN
MH
M
ke
ts
ar		 3
2		 2
8		 1
0		 1
7		 0 1 - 3 8
5
MH
VA
P E
uro
p
e		 13
-		 - 4 0 0 0 0 - 8 - 2
5
Mo
l P
ing
rp
o
roc
es
s		 - 3
3		 1 0 0 0 0 - 6 - 3
8
S
O
U
BT
TA
L		 7
0
6		 1
3
3		 1
22		 1
19		 4 4
4		 - 1
6		 1
11
1
2)
Ot
he
nit
ies
r e		 - 2
1		 - 2
1
T
O
TA
L		 7
0
6		 1
3
3		 1
22		 1
19		 4 4
4		 - 3
7		 1
0
9
0
Ha
lum
d w
ig
ht
(
lm
)
st
utt
ton
rve
vo
e g
e
e
s
sa
on		 55
10
7		 10
46
8		 6
36
8		 17
74
1		 4
76		 2
08
4		 92
24
3
3)
Op
ion
l E
BIT
kg
(
N
O
K
)
t
era
a
p
er		 12
.82		 12
.66		 19
.10		 6.7
3		 8.7
0		 20
.98		 12
.05
f w
hic
h M
H M
ke
ts
- o
ar		 0.5
8		 2.6
7		 1.5
1		 0.9
5		 -0.
14		 0.6
1		 0.9
2
f w
hic
h M
H V
AP
E
- o
uro
p
e		 -0.
24		 -0.
35		 0.0
0		 -0.
01		 -0.
47		 0.0
0		 -0.
27
f w
hic
h M
l P
ing
- o
orp
o
roc
es
s		 -0.
59		 0.0
7		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 -0.
41
4)
Pri
hie
/re
fer
ric
(
)
t
%
ce
ac
vem
en
en
ce
e		 94
%		 93
%		 99
%		 10
3%		 10
1%		 95
%
p
Co
(
)
ntr
t c
%
ac
ove
rag
e		 40
%		 64
%		 0% 29
%		 96
%		 0% 37
%
Qu
lity
ior
ha
(
)
%
a
- s
up
er
s
re		 91
%		 95
%		 76
%		 84
%		 90
%		 97
%		 89
%
5)
Ex
ion
l it
(
N
O
K m
illio
)
t
ce
p
a
em
s
n		 -75 0 0 -1 0 0 -76
5)
Ex
ion
l it
kg
(
N
O
K
)
t
ce
p
a
em
s p
er		 -1.
36		 0.0
0		 0.0
0		 -0.
08		 0.0
0		 0.0
0		 -0.
83
G
U
IDA
N
C
E
Q
4 h
lum
(
d w
ig
ht
)
2 2
01
t vo
utt
ton
arv
es
e
g
e
e
s		 68
00
0		 15
00
0		 7
00
0		 15
00
0		 1
00
0		 3
00
0		 10
9 0
00
(
)
20
14
ha
lum
d w
ig
ht
st
utt
ton
rve
vo
e
g
e
e
s		 26
4 0
00		 49
50
0		 29
00
0		 59
50
0		 6
00
0		 9
00
0		 41
7 0
00
Q
(
)
2 2
01
4 c
ha
%
tra
ct
on
s
re		 33
%		 46
%		 0% 17
%		 0% 0% 31
%

1) Operational EBIT arising from non salmon speices and 3rd party salmon not allocated to source of origin

2) Sterling White Halibut, Headquarter and Holding companies

3) Excluding Sterling White Halibut, Headquarter and Holding companies

4) MH Markets' price achievement to third party, MH VAP Europe and Morpol

5) Exceptional items impacting operational EBIT

2013 segment overview

20
13
Ma
rin
e H
G
aly
tic
al
fig
est
arv
rou
p -
an
ure
s		 SO
CE
S O
UR		 F O
RIG
IN
NO
K m
illion		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 MH
G
rou
p
OP
ER
AT
ION
AL
EB
IT
ING
MH
FA
RM		 2
245		 4
94		 2
88		 - 7
8		 - 3
0		 8
1		 3
00
1
MH
SA
LE
S A
ND
M
AR
KE
TIN
G
MH
M
ark
ets		 1
86		 1
05		 4
8		 1
3		 1 3 - 1
0		 3
46
MH
VA
P E
uro
pe		 - 3
7		 - 4 0 0 - 1 0 - 1
6		 - 5
8
Mo
l P
ing
rpo
roc
ess		 1
6		 8 0 0 0 0 3
9		 6
3
SU
OT
BT
AL		 2
410		 6
03		 3
37		 - 6
6		 - 3
0		 8
4		 1
4		 3
352
2)
Ot
her
itie
en
s		 -14
0		 - 1
40
TO
TA
L		 2
410		 6
03		 3
37		 - 6
6		 - 3
0		 8
4		 - 1
26		 3
212
Ha
vol
ed
ig
ht
s (
lmo
n)
st
utt
ton
rve
um
e g
we
sa		 22
2 4
94		 48
38
9		 33
05
9		 28
28
1		 5
883		 5
665		 34
3 7
72
3)
l E
kg
(
)
Op
tio
BIT
NO
K
era
na
pe
r		 10.
83		 12
.45		 10
.19		 -2.
32		 02
-5.		 14
.86		 9.7
5
f w
hic
h M
H M
ark
ets
- o		 0.8
4		 2.1
6		 1.4
6		 0.4
5		 0.2
3		 0.4
8		 1.0
1
f w
hic
h M
H V
AP
Eu
- o
rop
e		 -0.
17		 -0.
08		 0.0
0		 0.0
0		 -0.
14		 0.0
0		 -0.
17
f w
hic
h M
ol
Pro
sin
- o
orp
ces
g		 0.0
7		 0.1
6		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.1
8
4)
hie
fer		 94% 92
%		 10
1%		 10
1%		 98
%		 95
%
/re
(
)
Pri
ice
%
nt
ce
a
c
ve
me
en
ce
pr
(
)
Co
%
ntr
act
ov
era		 37% 61
%		 2% 32
%		 93
%		 6% 37
%
c
ge
lity
eri
ha
(
%
)
Qu
a
‐ s
up
or
s
re		 88% 93
%		 86
%		 87
%		 87
%		 95
%		 89
%
5)
l
(
l
lio
)
Exc
tio
ite
NO
K m
i
ep
na
ms
n		 -18
8		 -17 -17 -18 -55 0 -29
5
5)
(
)
tio
l
ite
kg
NO
Exc
K
ep
na
ms
pe
r		 -0.
84		 -0.
36		 -0.
51		 -0.
64		 -9.
38		 0.0
0		 -0.
86
GU
IDA
NC
E
Q1
20
14
har
lum
ed
ig
ht
t vo
utt
ton
ves
e g
we
s		 47
00
0		 10
00
0		 6
000		 14
50
0		 00
5		 2
000		 80
00
0
20
14
har
lum
ed
ig
ht
t vo
utt
ton
ves
e g
we
s		 25
4 5
00		 49
50
0		 28
00
0		 56
00
0		 8
000		 9
000		 40
5 0
00
Q1
sh
20
14
ntr
act
co
are		 42
%		 69
%		 0% 36
%		 95
%		 na 45
%

1) Operational EBIT arising from non salmon speices and 3rd party fish not allocated to source of origin

2) Sterling White Halibut, Headquarter and Holding companies

3) Excluding Sterling White Halibut, Headquarter and Holding companies

4) MH Marktes' price achievement to third party, MH VAP Europe and Morpol Processing

5) Exceptional items impacting operational EBIT. Refer to Note 6 to theinterim financial statements for further details

Q1 2014 segment overview

MH Operating Units Farming Farming Farming Farming Farming Farming

8
11		 1
35		 1
32		 1
27		 1
2		 4
5		 9
0		 - 4 - 1
5		 - 1
8		 0 1
316
7
20		 1
07		 1
12		 1
03		 4 4
2		 8
5		 - 2
5		 - 3
8		 - 2
1		 0 1
090
- 2
46		 9 7
4		 5
5		 9 - 2
7		 0 0 0 7 0 - 1
19
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
1
4		 0 0 0 0 0 0 0 0 0 0 1
4
0 0 0 0 0 0 0 0 0 0 0 0
4
88		 1
16		 1
86		 1
58		 1
3		 1
6		 8
5		 - 2
5		 - 3
7		 - 1
4		 0 9
86
- 1
4		 2
5		 1
0		 1
7		 0 1 - 8
5		 2
5		 3
8		 - 1
6		 0
06
7		 1
33		 1
22		 1
19		 4 4
4		 0 0 0 - 3
7		 0 1
090
55
10
7		 10
46
8		 6
368		 17
74
1		 4
76		 2
084		 84
93
2		 14
04
9		 11
35
8
12
.82		 12
.66		 19
.10		 6.
73		 8.
70		 20
.98
- 0
.26		 2.
39		 1.
51		 0.
94		 - 0
.61		 0.
61

Revenues and other income 2 294 361 320 638 44 104 4 380 1 135 1 034 84 - 4 526 5 868

Norway Scotland Canada Chile Ireland Faroes Markets VAP EU Morpol Other1) Elim MH Group*

MH Sales and Marketing

*Volume = harvested volume salmon in tons gutted weight

1)Inclusive MH Feed

Development in harvest volumes

THAT ITIE HAT VEST
20
07		 20
08		 20
09		 20
10		 20
11		 20
12		 20
13		 20 14
To
tal		 To
tal		 To
tal		 To
tal		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2E		 /4E
Q
3		 To
tal
No
rw
ay		 8.2
16		 1.1
17		 1.7
20		 2.5
20		 21
7.5		 62
.7		 64
.0		 .5
58		 70
.1		 25
5.3		 47
.3		 53
.5		 .1
53		 68
.6		 22
2.5		 55
.1		 68
.0		 140
.9		 26
4.0
Ch
ile
(
1)		 .6
90		 .4
75		 .2
36		 .6
10		 26
.0		 9.7 9.6 9.9 11
.0		 40
.2		 - 8.3 5.9 14
.1		 28
.3		 17
.7		 15
.0		 26
.8		 59
.5
Ca
da
na		 .5
39		 .1
36		 .5
36		 .5
33		 33
.9		 10
.6		 10
.6		 8.3 10
.8		 40
.2		 12
.2		 8.9 6.2 5.7 33
.1		 6.4 7.0 15
.6		 29
.0
Sc
otl
d
an		 .1
31		 .3
32		 .7
37		 .1
33		 50
.2		 9.2 11
.4		 .0
13		 6.7 40
.3		 9.6 13
.3		 .8
13		 11
.7		 48
.4		 10
.5		 15
.0		 24
.0		 .5
49
r (
2)
Ot
he		 .5
10		 .8
11		 .0
15		 .0
16		 15
.3		 4.4 3.6 3.7 4.7 16
.3		 2.7 3.6 2.0 3.2 11
.5		 2.6 4.0 8.4 15
.0
To
tal		 9.8
33		 6.6
32		 7.1
32		 5.7
29		 2.8
34		 .7
96		 .2
99		 .2
93		 .2
103		 2.3
39		 .0
80		 .4
79		 .9
80		 .4
103		 3.8
34		 .2
92		 .0
109		 5.8
21		 41
7.0

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

20
07		 20
08		 20
09		 20
10		 20
11		 20
12		 20
13		 20 14
To
tal		 To
tal		 To
tal		 To
tal		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2E		 Q
/4E
3		 To
tal
No
rw
ay		 19
%		 2% 18
%		 0% 7% 30
%		 18
%		 23
%		 4% 17% -25
%		 -16
%		 -9% -2% -13
%		 17% 27
%		 16
%		 19%
Ch
ile
(
1)		 -10
%		 -17
%		 -52
%		 -71
%		 14
6%		 25
5%		 72
8%		 -11
%		 0% 55
%		 -15
%		 -10
0%		 -40
%		 28
%		 -30
%		 115
%		 n.a 34
%		 110
%
Ca
da
na		 16
%		 -9% 1% -8% 1% 12% 36
%		 4% 23
%		 19% 15% -16
%		 -25
%		 -47
%		 -18
%		 -48
%		 -22
%		 31
%		 -12
%
Sc
otl
d
an		 0% 4% 17
%		 -12
%		 51
%		 -11
%		 -13
%		 -8% -47
%		 -20
%		 4% 17
%		 6% 74
%		 20
%		 9% 13
%		 -6% 2%
Ot
he
r (
2)		 21
%		 12
%		 28
%		 7% -4% 4% -8% 48
%		 0% 7% -39
%		 2% -45
%		 -31
%		 -29
%		 -4% 10
%		 61
%		 30
%
To
tal		 8% -4% 0% -10
%		 16
%		 29
%		 24
%		 12
%		 -1% 14
%		 -17
%		 -20
%		 -13
%		 0% -12
%		 15
%		 37
%		 17
%		 21
%

Notes:

(1) Sold volume, harvested volume from Q2 2011 onwards (2) Ireland and the Faroes

Morpol ASA – Historical data

NO
i
l
lio
K
m
n		 Q
20
10
1		 Q
2
20
10		 Q
3
20
10		 Q
20
10
4		 Q
20
1
11		 Q
2
20
11		 Q
3
20
11		 Q
20
4
11		 Q
20
12
1		 Q
2
20
12		 Q
3
20
12		 Q
20
12
4		 Q
20
13
1		 Q
2
20
13		 Q
3
20
13		 Q
20
13
4		 Q
20
1
14
l
To
ta
re
ve
nu
e		 73
1		 66
0		 74
2		 1,
314		 99
4		 88
9		 80
5		 1,
170		 90
4		 85
4		 79
4		 1,
20
1		 95
3		 1,
129		 1,
113		 1,
357		 91
7
be
for
fa
lue
EB
ITD
A
ir v
d
jus
tm
ts
e
a
a
en		 54 ‐3 17 12
2		 77 12
1		 14
3		 14
1		 10
7		 77 68 89 ‐2 21 11
9		 98 ‐15
EB
IT		 42 ‐17 0 99 49 92 11
5		 10
5		 74 47 34 46 ‐39 ‐15 82 63 ‐38
AN
AL
YT
ICA
L
DA
TA
SEC
ON
DA
RY
PR
OC		 ESS
ING
d
lum
du
ht
Pro
eig
ct w
ces
se
v
o
e,
pro		 16
22
1
,		 15
817
,		 16
273
,		 22
42
3
,		 17
81
6
,		 12
44
9
,		 11
44
5
,		 18
890
,		 16
04
5
,		 14
579
,		 15
110
,		 23
01
3
,		 19
389
,		 17
869
,		 19
06
5
,		 27
738
,		 11
358
,
kg,
du
eig
ht
EB
IT
ct w
p
er
pro		 2.6 ‐1.
0		 0.8 2.5 0.1 1.6 8.4 7.9 4.2 3.0 2.8 1.1 ‐4.
3		 ‐5.
2		 0.9 2.3 ‐3.
3
da
EB
IT
in
sin
m
arg
sec
on
ry
pro
ces
g		 6% ‐3% 2% 5% 0% 3% 17
%		 15
%		 9% 7% 6% 2% ‐9% ‐10
%		 2% 5% ‐4%

2014 Net capital expenditure guidance

Guidance on financial commitments and cost of debt

Dividend policy

  • The dividend level shall reflect the present and future cash generation potential of the Company
  • Marine Harvest will target a net interest-bearing debt/equity ratio of less than 0.5x
  • When target level is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividend
  • Dividend policy operationalized by defining a target average NIBD for each calendar year
  • Dividends applied to manage NIBD around the target level
  • 2014 NIBD target determined to NOK 7 500m
  • NOK 15 per kg Farming
Ha
t v
rve
s
o		 (
O
G
)
lum
H
e		 N
I
B
D
Ow h
ip
%
ne
rs		 2
0
1
2		 2
0
1
3		 Q
1
2
0
1
3		 Q
1
2
0
1
4		 2
0
1
2		 2
0
1
3		 Q
1
2
0
1
3		 Q
1
2
0
1
4		 /
/
3
1
1
2
2
0
1
3
No
Se
va
a		 4
8
%		 3
4,
2
9
5		 3
4,
9
1
0		 9,
3
8
7		 6,
4
2
5		 4.
3		 1
3.
4		 1
2.
2		 1
0
5.		 3
2
7
  • Leading integrated salmon producer in Northern Norway
  • 33.33 wholly owned licenses
  • 4 partly owned licenses
  • Marine Harvest has an ownership in Nova Sea of ~48% through direct and indirect shareholdings
  • 2013 dividends of NOK 40m (Q2)
  • Marine Harvest's share NOK ~20m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • NOK 12 million in Q1 2014
    • IFRS adjustment of biomass NOK 8.9m

Debt distribution and interest rate hedging

DEBT VOLUME HEDGED AND FIXED RATES OF INTEREST RATE HEDGES (MARCH-MARCH) (1)

C
U
R
R
E
N
C
Y		 D
E
B
T		 2
0
1
4		 2
0
1
5		 2
0
1
6		 2
0
1
7		 2
0
1
8		 2
0
1
9-
2
0
2
1
(2)
3
1
/
0
3
/
2
0
1
4		 No
min
al v
alue		 Fixe
d ra
te(3		 ) N
inal
lue
om
va		 Fixe
d ra
te(3		 ) N
inal
lue
om
va		 Fixe
d ra
te(3		 ) N
inal
lue
om
va		 Fixe
d ra
te(3
)		 No
min
al v
alue		 Fixe
d ra
te(3		 ) N
inal
lue
om
va		 Fixe
d ra
te(3
)
E
U
R
m		 6
3
5.
0		 7
9
6
6.		 1.
4
2
%		 0
1,
2
1
5.		 2.
0
0
%		 6
1,
2
3
7.		 1.
6
0
%		 5
9
7
9.		 1.
3
4
%		 0
6
5
0.		 1.
6
5
%		 0
2
8
3.		 2.
5
4
%
U
S
D
m		 1
8
4.
8		 5
2
1
5.		 2.
6
1
%		 0
2
1
6.		 2.
6
4
%		 0
2
1
5.		 2.
6
4
%		 5
1
0
7.		 2.
4
1
%		 5
1
0
7.		 2.
4
1
%		 5
1
0
7.		 2.
4
1
%
G
B
P
m		 5
9.
5		 0
5
3.		 2.
8
2
%		 5
5
2.		 2.
9
1
%		 0
4
7.		 2.
5
3
%		 5
2
3.		 2.
8
1
%		 5
2
3.		 2.
8
1
%		 5
2
3.		 2.
8
1
%
O
he
(
N
O
K
)
t
r
m		 1,
4
4.
5
7

Market value of IRS contracts in MNOK (31/03/14): -380.4

Mark to market valuation effect in Q1(4): -69.3

f
fer
f
f
Q
D
i
in
ixe
d v
loa
ing
le
d
in
h
in
1
t
te
t
t
en
ce
s
ra
se
ca
s		 2
8.
6
-

Notes:

(1) MHG choses March as the starting month for all new interest hedging contracts

(2) Debt at book value after taking cross currency swaps into account

(3) Financing margin not included

(4) Quarterly change in market value booked against P/L

POLICY:

  • External interest bearing debt is distributed as follows: EUR 64%, USD 13%, GBP 7%, other currencies 16%
  • Marine Harvest ASA shall hedge 100% of the Group's long-term interest-bearing debt by currency with fixed interest or interest rate derivatives for the first 3 years and 50% for the 5 following years. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD and GBP shall not be hedged

Please note that the current portfolio deviates from the policy due to inter alia the recent bond and convertible bond issuance. The policy will be reviewed.

Policy last updated 7 February 2012.

Hedging and long term currency exposure

POLICY

  • EUR/NOK
  • Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of one year. The annual hedging shall be evenly distributed across the months of the year.
  • USD/CAD
  • Marine Harvest shall not hedge the USD/CAD exposure.
  • USD/CLP
  • Marine Harvest shall not hedge the USD/CLP exposure
  • Internal transaction hedging relating to bilateral sales contracts
  • As of 1 April 2011, all bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and NOK
  • The operating entities hedge this exposure towards the parent company. In accordance with the general hedging policy, this exposure is not hedged towards external counterparties
  • The purpose of the internal hedging is to allow for a more accurate comparison between the MH Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT

Long term currency hedging

CURRENT PORTFOLIO

E
U
R		 /
N
O
K		 U
S
D
/
C		 A
D		 U
S
D
/
C
L
P
S
T
R
A
T
E
G
I
C
C
U
R
R
E
N
C
Y
H
E
D
G
I
N
G		 M
E
U
R		 Ra
te		 M
U
S
D		 Ra
te		 M
U
S
D		 Ra
te
2
0
1
4		 1
0
5		 8.
2
2
2
0
1
5		 8
5		 8.
4
7
P
/
L
f
fe
f c
in
Q
1
t o
tra
ts
e
c
on
c		 1
0
-		 (
O
)
M
N
K
O
M
N
K
/
/
Ma
ke
lu
3
1
1
2
2
0
1
3
t v
r
a
e		 5
0
-
C
ha
(
)
1
ng
e		 3
8
Ma
ke
lu
3
1
/
0
3
/
2
0
1
4
t v
r
a
e		 1
2
-

Note:

(1) Quarterly changes in market value booked against equity until maturity

D
E
S
I
G
N
A
T
E
D
M
A
R
K
E
T
C
U
R
R
E
N
C
I
E
S
No
rw
ay
C
h
i
le
Ca
da
na
Sc
lan
d
t
o
V
A
P		 E
U
R
U
S
D
U
S
D
G
B
P
E
U
R
Fa
roe
s
Co
l
d
W
Sp
ies
te
a
r
ec
As
ia
Mo
l
rp
o		 D
K
K
N
O
K
U
S
D
E
U
R

Impact of currency/interest rate movements

Av
te
er
ag
e
ra
s		 C
1
A
D		 1
E
U
R		 1
G
B
P		 S
1
U
D
Av
Q
1
2
0
1
4
er
g
e		 5.
5
2
7
3		 8.
3
4
7
1		 1
0.
0
8
3
0		 6.
0
9
5
1
Av
Q
1
2
0
1
3
er
ag
e		 5.
5
7
7
8		 7.
4
2
7
7		 8.
7
2
8
9		 5.
6
2
2
8
Av
te
er
ag
e
ra
s		 C
A
D
1		 E
U
R
1		 G
B
P
1		 U
S
D
1
Q
Q
1
2
0
1
4 v
1
2
0
1
4
s		 0.
9
%
-		 1
2.
4
%		 1
5.
5
%		 8.
4
%
En
d
f q
te
te
o
ua
r
r r
a
s		 C
1
A
D		 1
E
U
R		 1
G
B
P		 S
1
U
D
3
1
/
3
/
1
3 v
3
1
/
1
2
/
1
3
s.		 1
%
5.
-		 1.
%
5
-		 0.
8
%
-		 1.
6
%
-
  • Impact on Profit and Loss (versus Q1 2013)

  • Currency impact on net financial items

    • Positive impact of NOK 16m (Negative NOK 44m)

  • Impact from currency on Financial Position (versus 31/12/13)

  • Deacrease in interest-bearing debt due to currency NOK 98m

Fair value adjustment of biomass

  • Under IFRS (IAS 41) the company is required to value biological assets at a fair market value.
  • During the second half of 2011, the largest salmon farming companies in Norway, with support from audit firms, formed an industry working group where the objective was to reach a converged and improved common approach for estimating the fair value of the biomass in accordance with IAS 41.
  • Following the working group's conclusions, Marine Harvest has with effect from the fourth quarter 2011, refined its calculation model. The model enhancements have been made to capture the fair value development during the lifetime of the fish in an improved manner. The revised model split the biomass into 3 groups based on size:
  • Fish below 1 kg live weight ("smolt") is valued at accumulated cost
  • Fish between 1 kg and 4 kg live weight (immature fish) incorporates a proportionate share of the expected net profit at harvest
  • Fish above 4 kg (mature fish) is valued at the expected net value
  • The main drivers in the valuation are:
  • Volume of biomass (and average weight per site) at every reporting date
  • Expected cost at harvest
  • Expected value at harvest (based on externally quoted forward prices where applicable and/or the most relevant price information available for the period in which the fish is expected to be harvested)
  • Operationally, the value of biomass is reported at cost. In the Group accounts, "fair value adjustments" are added to costs of each operating unit and combined, the two elements constitute the fair value of biomass. The change in "fair value adjustment" is income or expense classified on a separate line in the Profit and Loss statement in each period. This item is not included in Operational EBIT.

Tax losses carried forward (YE 2013)

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  • Most of the deferred tax assets have been recognised on the statement of financial position
  • The NOL's will be used to offset taxable profit in the countries going forward
  • The utilisation of the deferred tax asset on NOL's gives rise to a tax expense in the accounts which do not normally have any cash effect

The Board's current authorisations

  • The Board was given the following proxies at the AGM
  • General share capital increase (up to 10% of share capital)
    • Proxy to set aside shareholders pre-emption right to subscribe
  • Targeted authority to increase share capital
    • Issuance of up to 82m shares in one or more occasion
    • Authority may only be used to issue shares to shareholders in Cermaq ASA as full or partial consideration for transfer of shares in Cermaq ASA to the company.
  • Purchase of own shares (up to 10% of share capital)
  • Maximum price: NOK 120 per share
  • Minimum price: NOK 7.5 per share
  • Issuance of new convertible bond (utilised)
  • Maximum amount: NOK 3,200m
  • Maximum number of shares to be issued as settlement: 64m
  • Authorisation to issue dividend from EGM of 15 November (utilised)
  • Up to NOK 500m

Sensitivities

E
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T
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A
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D
S
E
N
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T		 D
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Notes:

(1) Assuming all sales at spot prices, Please see contract policy and estimated contract rates in the latest quarterly presentation

(2) Normally 30 days credit on sale of salmon, effect assumes stable volume between years and across months

(3) Assuming EBIT per kg of NOK 6

(4) Annual harvest volume converted to live weight multiplied with feed conversion ratio (335 divided by 0.83 multiplied with 1.3 and NOK 1 = ~635) Assuming stable production and feed consumption between years and across months

(5) 60 days credit time on feed

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