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Mowi ASA

Investor Presentation • Apr 29, 2015

3665_rns_2015-04-29_1bbe78c3-f2ae-441c-ba16-dd8b9cc25aaf.pdf

Investor Presentation

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Marine Harvest Q1 2015 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, the anticipated business combination between MH Chile and Aqua Chile, production capacity, expectations of the 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 concerning 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

  • Satisfactory operational EBIT of NOK 932m
  • Strong contribution from Norway
  • Challenging market conditions in Americas
  • Convertible bonds converted to share capital
  • Quarterly dividend of NOK 1.30 per share
  • To be paid in the form of a repayment of paid in capital

Key financials

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  • Prices in Europe at good levels despite weak Russian demand
  • Weak prices in Americas – North American supply growth
  • Currency fluctuations impacting trade flows in several markets

Price achievement by origin

Note: Q1 2015 average price achievement is measured versus reference prices in all markets (Norway/Faroes (NASDAQ), Scotland (NASDAQ+ NOK 1.74), Canada (UB 6 Seattle)

Operational EBIT comparison (reclassified)

Norway

  • Strong results in the quarter
  • Lower spot price offset by a more favourable contract portfolio
  • Increased treatment costs due to biological issues and higher sea temperatures
  • Sea lice mitigation costs of NOK 1.65 per kg in the quarter

Note: Marine Harvest Norway's fixed price/fixed volume contracts with third party customers and MH's processing entities. MH's processing entities cover a large 9 proportion of their sales exposure through third party end product contracts.

Norway: Operational EBIT/kg per region

Including contribution from Sales and Marketing 10

Scotland

  • Results impacted by biological issues as expected
  • Low volumes due to mortality in current generation
  • High biological costs on harvested fish (AGD and lice treatments)
  • Prices in local market negatively affected by strengthening of GBP
  • Cost improvements expected going forward

Canada

  • Low prices due to high supply growth in Americas
  • Strong biological performance

Contract coverage 0% 0% Superior share 86% 76%

Ireland and Faroes

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No volumes in the Faroes until Q4 2015

Consumer Products

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  • Improvements year over year, but still not satisfactory earnings
  • French smoked operations still challenging
  • Start-up costs in connection with new processing plant in Rosyth, Scotland

Feed

  • MH Feed impacted by low season and third party commitments
  • Third party feed supply contracts will diminish during 2015

Notes: (1) Based on 2015 harvest volume estimate 15

Discontinued operations Chile and US operations

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Operational EBIT Salmon of Chilean Origin Disontinued Operation Q1 2014 vs Q1 2015

  • Continued weak prices and unfavorable currency movements
  • Costs affected by challenging biology and exceptional mortality
  • Full cost in box USD 5.2 per kg (HOG), including exceptional items
  • Exceptional mortality of NOK 51m in Region XI
  • Volcanic eruption expected to have limited financial impact

First Quarter 2015 Financials, Harvest Volumes and Markets

Profit and Loss

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Financial Position

M
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r
r
e
n
a
e
s		 1
2
2
6
9		 1
1
9
8
8		 1
6
2
5
7
C
l
i
b
i
l
i
i
t
t
r
r
e
n
a
e
s
u		 4
3
4
2		 4
2
6
0		 5
6
8
4
L
i
b
i
l
i
i
h
l
d
f
l
t
a
e
s
e
o
r
s
a
e		 1
1
3
2		 1
8
7		 0
T
l
i
d
l
i
b
i
l
i
i
t
t
t
o
a
e
q
a
n
a
e
s
u
y		 3
6
1
3
0		 3
2
8
3
4		 3
6
9
7
4
N
i
b
i
d
b
t
t
t-
t
e
n
e
r
e
s
e
a
r
n
g
e		 7
5
1
8		 7
5
1
1		 9
2
6
8
E
i
i
t
t
q
u
y
r
a
o		 0.
9
%
5		 4
9.
9
%		 3
9.
8
%

Cash Flow and Net Interest Bearing Debt

Ma
in
Ha
Gr
t
r
e
rv
es
ou
p
N
O
K m
i
l
l
ion		 Q
1
2
0
1
5		 Q
1
2
0
1
4
2
0
1
4
Re
la
i
f
ie
d
c
ss
N
I
B
D
be
in
in
f p
io
d
g
n
g
o
er		 9
2
6
8
-		 -7
7
9
1		 7
7
9
1
-
Op
ion
l
E
B
I
T
D
A
t
era
a
C
ha
in
k
ing
i
l
ta
ng
e
wo
r
c
ap
Ta
i
d
xe
s
p
a		 1
1
8
7
3
4
1
-
1
1
6
-		 1
1
6
9
1
8
4
9
1
-		 4
9
6
7
9
1
3
-
2
9
3
-
O
he
d
j
t
tm
ts
r a
us
en
Ca
h
f
lo
fro
io
t
s
w
m
o
p
er
a
ns		 2
5
-
6
6
9		 1
2
8
-
1
1
3
3		 1
8
2
3
4
0
8
Ca
Ne
t
p
ex
Ca
h
fro
d
isp
l o
f a
he
l
d
for
le
ts
s
m
os
a
ss
e
s
a
O
he
inv
t
tm
ts
r
es
en
Ca
h
f
lo
fro
in
tm
ts
s
w
m
ve
s
en		 4
3
5
-
0
9
4
2
6
-		 3
4
9
-
0
2
3
4
7
-		 1
5
7
8
-
1
1
8
2
7
3
-
4
6
9
-
Ne
in
d
f
ina
ia
l
i
i
d
t
te
t a
te
res
n
nc
ms
p
a
O
he
i
t
te
r
ms
Bo
ds
d
i
te
to
ty
n
c
on
ve
r
eq
u
/ r
D
iv
i
de
d
d
is
i
bu
d
f p
i
d
i
l
tr
te
tu
ta
n
e
rn
o
a
ca
p
Tr
la
ion
f
fec
in
be
ing
de
b
t
t o
te
t-
t
an
s
e
n
res
ar
Ca
h
fro
d
isc
inu
d
ion
t
t
s
m
on
e
op
er
a
s		 1
0
4
-
1
0
8
-
2
3
6
9
4
9
2
-
8
7
2
4
5
-		 8
6
-
4
2
-
0
1
0
5
-
9
8
3
4		 4
1
1
-
1
0
7
-
4
8
6
3
4
2
4
-
7
1
9
-
2
4
1
-
N
I
B
D
d
f p
io
d
en
o
er		 7
5
1
8
-		 7
5
1
1
-		 9
2
6
8
-
1):
De
b
d
is
i
bu
ion
t
tr
t
E
U
R
U
S
D		 6
9
%
1
3
%		 6
4
%
1
3
%		 7
1
%
1
4
%
G
B
P
O
he
ies
t
r c
ur
ren
c		 4
%
1
4
%		 7
%
1
6
%		 4
%
1
1
%

1) Debt distribution including effect of cross currency sw aps.

2) Currency effect on debt in Q1 is NOK 87 million.

2015 Cash Flow Guidance

  • 2015 cash flow estimates
  • Working capital buildup NOK 900m
    • •Support further organic growth
  • Capital expenditures increased from NOK 1,700m to NOK 1,900m due to FX changes
    • •NOK 1,100m – Maintenance
    • •NOK 550m - Smolt and cleaner fish
    • •NOK 250m - Other
  • Interest expenses NOK 270m
  • Tax payables NOK 650m
  • Quarterly dividend in Q2 2015 of NOK 1.30 per share (repayment of paid in capital)

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

Dividend policy

  • The quarterly dividend level shall reflect the present and expected future cash flow generation of the Company
  • To this end, a target level for net interest bearing debt is determined, reviewed and updated on a regular basis
  • When the target is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividends
  • NIBD target revised to EUR 950m
  • EUR 1.8 per kg harvest volume (equivalent to ca NOK 15 per kg)
  • Residual attributed to non-farming businesses

Overview of financing

  • EUR 555m Facility Agreement
  • Maturity Q4 2019
  • Covenants:
    • •35% equity ratio
    • Accordion option for parties to agree increased size of facility by EUR 295m
  • Lenders: DNB, Nordea, Rabobank and ABN Amro
  • EUR 375m issued in April 2014
  • Tenor 5 years, annual coupon 0.875%(1), conversion price EUR 10.5754
  • NOK 1,250m bond issued in February 2013
  • Tenor 5 years, NIBOR + 3.5%

Supply development

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

Source: Kontali

  • Supply growth in the upper range of previous guidance
  • Driven by higher than normal sea water temperatures in Norway and temporary increase in MAB
  • Substantial supply growth from North America
  • Stable supply growth from Chile when adjusting for frozen inventory

Development in reference prices

Re
fer
ric
en
ce
p
es		 Q
1 2
01
5		 C
ha
ng
e v
s		 Q
1 2
01
5		 C
ha
ng
e v
s
NO
K		 Q
1 2
01
4		 (
)
Ma
rke
t
4		 Q
1 2
01
5
(
)
No
1
rwa
y		 O
N
K 4
0.7
2		 -13
.9%		 EU
R 4
.66		 -17
.7%
C
hile
(
)
2		 N
O
K 6
4.7
9		 5.2
%		 U
S
D 8
.35		 -17
.3%
No
rth
A
ric
(
3
)
me
a		 N
O
K 4
1.2
7		 -17
.8%		 U
S
D 5
.32		 -35
.4%

Notes:

(1) Average superior HOG price per kg (NASDAQ)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 42.1 and USD 5.4 HOG (3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb)

(4) Market price in local currency

Global volume by market

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

Source: Kontali

  • Strong demand response in EU and continued strong growth in Asia
  • Russia/Ukraine significantly down due to trade sanctions and FX
  • Brazil down in March due to FX
  • 7% growth in the USA

Industry supply outlook

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

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algae blooms etc. and 27 market developments.

MHG – 2015 volume guidance

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

Note

(1) Includes discontinued operations

  • Q2 2015 growth expected to be negative 6% (including Chile)
  • 2015 growth expected to be 5% (including Chile)

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such 28 as diseases, algae blooms etc. and market developments.

  • Favourable market and supply outlook in Europe
  • Futures prices (NASDAQ) next 12 months at ca NOK 40 per kg
  • Monitoring the market conditions in the Americas closely
  • MHG supportive of Norwegian White Paper
  • Responsible approach by the Norwegian government
  • -Improved biological control a prerequisite for sustainable growth
  • AquaChile merger in process
  • Quarterly dividend of NOK 1.30 per share
  • To be paid in the form of repayment of paid in capital

Appendix

Conditional agreement to merge MH Chile with AquaChile

  • Forming a leading player in the Chilean industry
  • 165 thousand tonnes of salmonids capacity of 260 thousand tonnes (HOG)
  • Infrastructure to support stand alone operations in region X and XI
  • 19 thousand tonnes of Tilapia capacity of 25 thousand tonnes (WFE)
  • Major step towards a more sustainable biological framework in Chile
  • Marine Harvest to own 42.8% post merger
  • AquaChile to remain listed on the Santiago Stock Exchange
  • Option to increase ownership to at least 55%(1)
  • Tentative closing in Q3 2015
  • Marine Harvest Chile reported as "Discontinued Operations" from Q1 2015

Consolidation required in Chilean farming industry

  • 1250 concessions in total
  • Fragmented industry structure
  • Biological challenges
  • Lack of coordination and logistics

Contract coverage and sales contract policy

  • Q2 2015 contract shares (% of guided volume):
  • Norway 32%
  • Scotland 40%
  • Canada 0%
S
A
L
E
S
C
O
N
T
R
A
C
T
P
O
L
I
C
Y		 M
i
h
d
i
(
)
t
1
n
e
g
n
g
r
a
e		 M
h
d
i
(
)
t
1
a
x
e
g
n
g
r
a
e
(
)
(
)
N
2
3
o
r
w
a
y		 1
5.
0
%		 5
0.
0
%
C
d
a
n
a
a		 0.
0
%		 3
0.
0
%
S
l
d
t
c
o
a
n		 4
0.
0
%		 7
5.
0
%
I
l
d
r
e
a
n		 0.
0
%		 3
0.
0
%
F
a
r
o
e
s		 0.
0
%		 3
0.
0
%
W
i
h
d
t
e
g
e
a
v
e
r
a
g
e		 1
7.
6
%		 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

Volume USAReference price North America, GW (Seattle) Reference price Chile, Fillets (Miami)

Re
fe
ice
re
nc
e p
r
s		 Q
1
2
0
1
5
N
O
K		 C
ha
ng
e v
s
Q
1
2
0
1
4		 Q
1
2
0
1
5
(
)
Ma
ke
t
4
r		 C
ha
ng
e v
s
Q
1
2
0
1
5
No
(
1
)
rwa
y
C
h
i
le
(
)
2		 N
O
K
4
0.
2
7
N
O
K
6
4.
7
9		 1
3.
9
%
-
5.
2
%		 E
U
R
4.
6
6
U
S
D
8.
3
5		 1
%
7.
7
-
1
7.
3
%
-
No
h
Am
ica
(
3
)
rt
er		 O
N
K
4
1.
2
7		 1
7.
8
%
-		 S
U
D
5.
3
2		 3
5.
4
%
-

Notes:

(1) Average superior HOG price per kg (NASDAQ)

(2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 42.1 and USD 5.4 HOG

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

(4) Market price in local currency

Key performance indicators

C
MH
on
sum
er
MH
M
ark
ets		 Pro
du
cts
Sal
nd
ark
M
eti
es
a
ng		 Q
1 2
015		 Q
1 2
015
nal
and
oth
Op
tio
inc
era
rev
en
ues
er
om
e		 3 9
84		 2 3
61
nal
Op
tio
EBI
T
era
EBI
T
in %
m
arg		 108
2.7
%		 ‐ 2
‐0.
1%
Q1
201
5		 Q1
201
4
lass
ifed
Rec
(NO
K)
Gro
EBI
T p
er k
up
g		 10.9
6		 13.
30
ibu
fr
(NO
K)
‐ Co
tio
F
ing
ntr
n
om
arm		 9.6
9		 13.
24
‐ Co
ibu
tio
fr
M
ark
(NO
K)
ntr
ets
n
om		 1.3
0		 0.9
0
ibu
fr
rod
s (N
)
‐ Co
tio
C
er P
OK
ntr
uct
n
om
ons
um		 ‐0.0
2		 ‐0.8
5
olu
(
k to
s)
Gro
Har
t V
up
ves
me
nne		 83
409		 74
502
in (
)
Op
tio
nal
EBI
T fr
of o
rig
NO
K m
era
om
sou
rce		 914 991
nal
T fr
oth
(NO
)
Op
tio
EBI
nits
K m
era
om
er u		 18 ‐ 21
rati
l EB
Gro
IT
up
ope
ona		 932 970

Key financials

Ma
in
Ha
Gr
in
f
ig
t
r
e
rv
es
ou
p
- m
a
ur
es		 Q
1
2
0
1
5		 Q
1
2
0
1
4		 2
0
1
4
Un
d
ite
d
N
O
K m
illio
au
n		 Re
la
c
ss		 i
fe
d
Op
ion
l re
d o
he
inc
t
t
era
a
ve
nu
e a
n
r
om
e		 5
6
5
2		 5
2
4
1		 2
2
8
4
7
Op
ion
l
E
B
I
T
t
1)
era
a		 9
3
2		 9
0
7		 3
9
3
8
Ca
h
f
low
fro
ion
t
s
m
op
era
s		 6
6
9		 1
1
3
3		 3
4
0
8
Ne
in
be
ing
de
b
(
N
I
B
D
)
t
te
t-
t
res
ar		 7
5
1
8		 7
5
1
1		 9
2
6
8
2)
Un
de
ly
ing
E
P
S
(
N
O
K
)
r		 1.
3
3		 1.
7
8		 7.
0
1
3)
f
(
O
)
Ne
h
low
ha
N
K
t c
as
p
er
s
re		 -0
3
7		 1.
7
6		 5
6.
6
4)
O
C
R
E		 1
7.
6
%		 1
9.
2
%		 1
8.
7
%
(
)
Ha
lum
d w
ig
h
lm
t v
t
te
t
to
rve
s
o
e
g
e
ns
sa
on
u
,		 8
3
4
0
9		 5
7
4
0
2		 5
3
1
3
6
9
5)
Op
O
ion
l
E
B
I
T
N
K
kg
- T
l
t
ta
era
a
p
er
o
-		 1
1.
1
7		 1
3.
0
1		 1
1.
2
1
No
rw
ay		 1
2.
8
7		 1
2.
8
3		 1
1.
8
1
Sc
lan
d
t
o		 2.
7
0		 1
2.
6
6		 9.
6
3
Ca
da
na		 4.
9
0		 1
8.
4
2		 9.
1
4

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

companies, restructuring cost, impairment losses of fixed assets/intangibles and other non-operating items

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

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 M arketing (from own salmon)

Quarterly segment overview

S
C
O
U
R		 S
E
O
F O
RIG		 IN
NO
K m
illio
n		 No
rw
ay		 Sc
lan
d
ot		 Ca
da
na		 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
57		 6 4
7		 1
-		 1
-		 80
8
MH
S
AL
E
S
AN
D M
AR
KE
TIN
G
MH
M
ket
ar
s		 8
6		 1
3		 4 0 1
-		 6 10
8
MH
Co
Pro
du
cts
ns
um
er		 - 4 0 0 0 0 2 - 2
S
O
U
BT
TA
L		 8
39		 1
9		 5
1		 0 - 2 8 9
14
MH
Fe
d
e		 19 19
2)
Ot
he
ntit
ies
r e		 -1 - 1
T
O
TA
L		 83
9		 19 51 0 - 2 25 93
2
Ha
lum
(
d w
ig
ht
lm
)
st
utt
ton
rve
vo
e
g
e
e
s,
sa
on		 65
20
3		 7 1
12		 10
47
8		 61
6		 0 83
40
9
3)
Op
tio
l E
BIT
kg
(
N
O
K
)
era
na
p
er		 12
.87		 2.7
0		 4.9
0		 -0.
76		 0.0
0		 11
.17
f w
hic
h M
H M
ket
- o
ar
s		 1.3
2		 1.8
4		 0.4
1		 0.0
0		 0.0
0		 1.3
0
f w
Co
hic
h M
H
Pro
du
cts
- o
ns
um
er		 -0.
06		 -0.
02		 0.0
0		 0.0
7		 0.0
0		 -0.
02
C
AN
AL
YT
I
AL
DA
TA
4)
Pri
hie
/re
fer
ric
(
%
)
t
ce
ac
vem
en
en
ce
p
e		 100
%		 11
1%		 98
%		 0% 10
1%
Co
(
)
%
ntr
t c
ac
ove
rag
e		 33
%		 68
%		 0% 95
%		 0% 21
%
Qu
(
)
lity
ior
ha
%
a
- s
up
er
s
re		 92
%		 90
%		 86
%		 92
%		 0% 91
%
5)
Ex
tio
l it
(
N
O
K m
illio
)
ce
p
na
em
s
n		 -11
3		 -4 0 0 0 0 -11
7
5)
Ex
tio
l it
kg
(
N
O
K
)
ce
p
na
em
s p
er		 -1.
73		 -0.
61		 0.0
0		 0.0
0		 0.0
0		 -1.
41
C
G
U
IDA
N
E
Q
2 2
01
ha
lum
(
d w
ig
ht
)
5
st
utt
ton
rve
vo
e
g
e
e
s		 65
00
0		 13
00
0		 12
00
0		 2
00
0		 0 92
00
0
20
15
ha
lum
(
d w
ig
ht
)
st
utt
ton
rve
vo
e
g
e
e
s		 26
6 0
00		 56
00
0		 41
00
0		 9
00
0		 2
00
0		 37
4 0
00
Q
(
)
2 2
01
5 c
tra
ct
ha
%
on
s
re		 32
%		 40
%		 0% 0% 0% 28
%

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) Including Sterling White Halibut, MH Feed, Headquarter and Holding companies

4) MH Sales and Marketing Price achievement

5) Exceptional items impacting operational EBIT

Quarterly segment overview

MH
Op
ting
Un
its
era		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 Fa
ing
rm		 MH
Sa
les
an		 d M
ark
etin
g
Co
nsu
me
r
Nor
wa
y		 Sco
tlan
d		 Ca
nad
a		 Ch
ile		 Ire
lan
d		 Far
oes		 Ma
rke
ts		 Pro
duc
ts		 MH
Fe
ed		 Oth
er		 Eli
m		 MH
Gr
*
oup
Rev
and
oth
er i
enu
es
nco
me		 2 5
82		 31
8		 42
9		 0 48 0 3 9
84		 2 3
61		 39
2		 10
1		 - 4
563		 5 6
52
Ope
rati
EB
ITD
A
ng		 85
6		 38 68 0 7 2 11
3		 49 38 6 0 1 1
78
Ope
rati
EB
IT
ng		 75
7		 6 47 0 - 1 - 1 10
8		 - 2 19 - 1 0 93
2
Fa
ir V
alu
dj o
n b
iom
/ un
lise
d d
eriv
ativ
ntra
cts
e a
ass
, co
rea
es		 - 7
42		 57 15 0 79 5 0 0 0 - 5
1		 0 - 6
37
U
aliz
ed
in a
djus
tme
nt
nre
ma
rg		 0 0 0 0 0 0 0 0 0 0 11 11
R
turi
est
t
ruc
ng
cos		 0 0 1 0 0 0 0 0 0 0 0 1
O
the
atio
nal
item
r no
n-o
per
s		 0 0 0 0 0 0 0 0 0 0 0 0
In
e/lo
from
iate
d c
ies
com
ss
as
soc
om
pan		 12 1 0 0 0 0 0 0 0 0 0 12
W
rite
-do
of f
ixed
s/in
ible
set
tan
wn
as
g
s		 0 0 0 0 0 0 0 1 0 0 0 1
EB
IT		 27 63 63 0 78 4 10
8		 - 1 19 - 5
2		 11 31
9
Con
trib
utio
tion
al E
BIT
fro
m S
&M
n to
op
era		 82 13 4 0 0 - 1 - 1
08		 2 8 0
Ope
rati
l EB
IT in
cl c
ribu
tion
fro
m S
&M
ont
ona		 83
9		 19 51 0 0 - 2 0 0 19 6 0 93
2
Har
t / s
ales
vol
ves
um
e		 65
20
3		 7 1
12		 10
47
8		 0 61
6		 0 74
69
6		 25
81
4
Ope
rati
l EB
IT/k
inc
l co
ntri
but
ion
from
S&
M
ona
g		 12
.87		 2.7
0		 4.9
0		 0.0
0		 - 0.
76		 0.0
0
-of
whi
ch
S&
M		 1.2
6		 1.8
2		 0.4
1		 0.0
0		 0.0
7		 0.0
0
*Vo
lum
ha
ted
vol
alm
in t
ted
ig
ht
gut
e =
rves
um
e s
on
onn
es
we

Development in harvest volumes

200
7		 200
8		 200
9		 201
0		 201
1		 201
2		 201
3		 201
4		 201 5E
Tot
al		 Tot
al		 Tot
al		 Tot
al		 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2
E H		 2-1
5E		 Tot
al
Nor
wa
y		 .2
168		 .1
171		 201
.7		 .5
202		 217
.5		 7 0 62.
64.		 5
58.		 70.
1		 255
.3		 3 5 47.
53.		 1
53.		 68.
6		 222
.5		 1 7 55.
68.		 3
64.		 69.
9		 258
.0		 2 0 65.
65.		 135
.8		 266
.0
Ca
nad
a		 5
39.		 1
36.		 5
36.		 5
33.		 33.
9		 10.6 10.6 8.3 10.
8		 40.
2		 8.9 12.2 6.2 5.7 33.
1		 6.5 6.4 7.1 6.8 26.
7		 12.0 10.5 18.5 41.
0
Sco
tlan
d		 1
31.		 3
32.		 7
37.		 1
33.		 50.
2		 9.2
11.4		 13.0 6.7 40.
3		 13.3 9.6 13.8 11.
7		 48.
4		 18.3 10.5 13.7 6.4 48.
9		 13.0 7.1 35.
9		 56.
0
er (
1)
Oth		 5
10.		 8
11.		 0
15.		 0
16.		 15.
3		 3.6 4.4 3.7 4.7 16.
3		 3.6 2.7 2.0 3.2 11.
5		 4.3 2.6 5.5 5.4 17.
8		 2.0 0.6 8.4 11.
0
Tot
al		 .3
249		 .2
251		 .9
290		 .1
285		 .8
316		 0
87.		 5
89.		 4
83.		 2
92.		 .1
352		 8
71.		 4
79.		 0
75.		 2
89.		 .5
315		 5
74.		 8
97.		 6
90.		 5
88.		 .4
351		 4
83.		 0
92.		 .6
198		 374
.0

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

200
7		 200
8		 200
9		 201
0		 201
1		 201
2		 201
3		 201
4		 201 5E
Tot
al		 Tot
al		 Tot
al		 Tot
al		 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2 Q3 Q4 Tot
al		 Q1 Q2
E H		 2-1
5E		 Tot
al
Nor
wa
y		 19% 2% 18% 0% 7% 30% 18% 23% 4% 17% -25
%		 -16
%		 -9% -2% -13
%		 17% 28% 21% 2% 16% 18% -5% 1% 3%
Ca
nad
a		 16% -9% 1% -8% 1% 12% 36% 4% 23% 19% 15% -16
%		 -25
%		 -47
%		 -18
%		 -48
%		 -28
%		 14% 19% -19
%		 65% 86% 34% 54%
Sco
tlan
d		 0% 4% 17% -12
%		 51% -11
%		 -13
%		 -8% -47
%		 -20
%		 4% 17% 6% 74% 20% 9% 37% 0% -46
%		 1% -32
%		 -29
%		 78% 15%
Oth
er (
1)		 21% 12% 28% 7% -4% 4% -8% 48% 0% 7% -39
%		 2% -45
%		 -31
%		 -29
%		 -4% 20% 172
%		 67% 54% -76
%		 -54
%		 -23
%		 -38
%
Tot
al		 -21
%		 1% 16% -2% 11% 20% 14% 16% -1% 11% -17
%		 -11
%		 -10
%		 -3% -10
%		 4% 23% 21% -1% 11% 12% -6% 103
%		 6%

Notes:

(1) Ireland and the Faroes

Net capital expenditure guidance

Please note the approximations are subject to changes

N
o		 S
v
a
e		 a
Ha
t v
rve
s
o		 (
O
G
)
lum
H
e		 (
)
E
B
I
T
1		 kg
p
er		 N
I
B
D
Ow
ne		 h
ip
%
rs		 2
0
1
3		 2
0
1
4		 Q
1
2
0
1
4		 Q
1
2
0
1
5		 2
0
1
3		 2
0
1
4		 Q
1
2
0
1
4		 Q
1
2
0
1
5		 3
1.
0
3.
2
0
1
5
No
Se
va
a		 4
8
%		 3
4,
9
1
0		 3
8,
3
9
7		 6,
4
2
5		 6,
9
3
8		 1
3.
4		 1
2.
3		 1
0
5.		 1
4.
8		 2
5
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
  • 2014 dividends of NOK 150m (Q2)
  • Marine Harvest's share NOK ~73m
  • Proposed dividend for 2014 of NOK 150m to be paid in 2015 (MHG share NOK ~73m)
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • NOK 15.9 million in Q1 2015
    • •IFRS adjustment of biomass NOK 20.8m

Debt distribution and interest rate hedging

DE
BT
VO
LU		 ME
HE
DG		 ED
AN
D F		 IXE
D R
AT
ES		 OF
IN
TE
RE		 ST
RA
TE		 HE
DG
ES
(		 MA
RC
H-M
AR		 (1)
CH
)
CU
RR
EN
CY		 DE
BT		 201 5 201 6 201 7 201 8 201 9 202 0 202 1 202 2
(2)
31/
03/
201
5		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat		 Nom
inal v
alue		 e(3)
Fixe
d rat
EU
R m		 .2
622		 .9
368		 1.0
0%		 .1
507		 1.3
4%		 .9
636		 1.6
7%		 .8
911		 2.3
4%		 .5
970		 3.2
7%		 .0
380		 2.1
3%		 .0
380		 2.2
0%		 - 0.0
0%
US
D m		 .9
138		 .0
123		 1.9
8%		 .0
151		 2.9
1%		 .5
138		 3.1
2%		 .5
138		 3.2
1%		 .5
167		 2.9
3%		 3
78.		 2.3
1%		 3
78.		 2.3
1%		 0
60.		 4.1
3%
GB
P m		 0
29.		 0
34.		 2.4
8%		 0
34.		 3.0
4%		 0
34.		 3.1
3%		 0
34.		 3.1
3%		 0
34.		 3.1
3%		 5
23.		 2.8
3%		 5
23.		 2.8
3%		 - 0.0
0%
Oth
er (
NO
K m
)		 1 2
27.
9
IRS
OK
(
31/
03/
15)
Ma
rke
t va
lue
of
ntra
cts
in
MN
co
:		 -68
9.3
(4):
Ma
rk t
ark
alu
atio
ffec
t in
Q1
et v
o m
n e		 -24
.8
Diff
in
fixe
d vs
flo
atin
ettl
ed
in c
ash
in
Q1
te s
ere
nce
g ra		 -30
.9

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 71%, USD 13%, GBP 4%, other currencies 12%.
  • Marine Harvest ASA shall hedge 70%-100% of the Group's long-term interest-bearing debt by currency with fixed interest or interest rate derivatives for the first 4 years and 0%-60% 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.

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 two years. 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

Strategic currency hedging

narine harvest
E
U
R
/
N
O
K
S
G
C
C
C
G
G
T
R
A
T
E
I
U
R
R
E
N
Y
H
E
D
I
N		 M
E
U
R		 Ra
te
2
0
1
5		 1
3
1		 8.
4
6
2
0
1
6		 1
6
1		 9.
1
6
P
/
L
f
fe
f c
in
in
Q
1
t o
tra
ts
tu
e
c
on
c
m
a
r
g		 1
0
-		 (
M
N
O
K
)
O
M
N
K
/
/
Ma
ke
lu
3
1
1
2
2
0
1
4
t v
r
a
e		 8
1
-
C
(
)
ha
1
ng
e		 1
0
0
/
/
Ma
ke
lu
3
1
0
3
2
0
1
5
t v
r
a
e		 1
9
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		 E
U
R
C
h
i
le		 U
S
D
Ca
da
na		 S
U
D
Sc
lan
d
t
o		 G
B
P
Fe
d
e		 E
U
R
V
A
P		 E
U
R
Mo
l
rp
o		 E
U
R
Fa
roe
s		 E
U
R
Co
l
d
W
Sp
ies
te
a
r
ec		 N
O
K
As
ia		 S
U
D

Impact of currency/interest rate movements

Av
t
e
ra
g
e
ra
e
s		 C
A
D
1		 E
U
R
1		 G
B
P
1		 U
S
D
1
Av
Q
1
2
0
1
5
e
rg
e		 6.
2
5
8
0		 8.
7
3
1
8		 1
1.
7
5
0
3		 7.
7
5
9
4
Q
2
0
Av
1
1
4
e
r
a
g
e		 2
3
5.
5
7		 8.
3
4
7
1		 0.
0
8
3
0
1		 6.
0
9
5
1
Av
t
e
ra
g
e
ra
e
s		 1
C
A
D		 1
E
U
R		 1
G
B
P		 1
U
S
D
Q
Q
1
2
0
1
5
1
2
0
1
4
vs		 1
3.
2
%		 4.
6
%		 1
6.
5
%		 2
7.
3
%
f q
En
d
t
t
o
u
a
r
e
r r
a
e
s		 C
1
A
D		 1
E
U
R		 1
G
B
P		 S
1
U
D
/
/
/
/
3
1
3
1
5
3
1
1
2
1
4
vs		 1.
2
%
-		 3.
7
%
-		 3.
4
%		 8.
8
%
  • Impact on Profit and Loss (versus Q1 2014)
  • Currency impact on net financial items
    • •Positive impact of NOK 436.6m (Positive NOK 18.9m)
  • Impact from currency on Financial Position (versus 31/12/14)
  • Increase in interest-bearing debt due to currency NOK 87m

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 2014)

Ma
in
Ha
Gr
3
1.
1
2.
2
0
1
4
t
r
e
rv
es
ou
p
N
O
K m
illio
n		 Re
ise
d
co
g
n		 Un
ise
d
re
co
g
n		 To
l
ta
U
S
A		 6
9		 0 6
9
Po
lan
d		 2
4
8		 1
5		 2
9
8
Fr
an
ce		 3
5		 2
5
6		 2
9
1
Ge
rm
an
y		 1
4		 0 1
4
C
h
i
le		 0 3
1
0		 3
1
0
I
ly
ta		 0 4 4
O
he
t
r		 3 2
1		 2
4
To
l
ta		 3
6
8		 6
4
1		 1
0
1
0

* The NOL's will be used to offset taxavle 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

  • 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
    • 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
    • •Maximum amount: NOK 3,200m
    • •Maximum number of shares to be issued as settlement: 64m
  • Authorisation to issue quarterly dividends
E
S
T
I
M
A
T
E
D
S
E
N
S
I
T
I
V
I
T
I
E
S
O
N
A
N
N
U
A
L
R
E
S
U
L
T
S
i
io
N
O
K
l
l
m
n		 O
P.
E
B
I
T
E
F
F
E
C
T		 C
A
S
H
F
L
O
W
E
F
F
E
C
T		 D
R
I
V
E
R
C
ha
in
lo
ba
l a
lm
ice
f
N
O
K
(
)
(
)
1
1
2
ng
e
g
ve
rag
e s
a
on
p
r
o		 4
4
0		 4
0
3		 An
l
ha
lum
t v
nu
a
rve
s
o
e
C
ha
in
l
ha
lum
f
1
0,
0
0
0
(
2
)
(
3
)
to
ta
t v
to
ng
e
rve
s
o
e o
nn
es		 1
0
0		 9
2		 Ma
ina
l v
lum
rg
o
e
C
O
(
)
(
)
ha
in
lo
ba
l
fee
d p
ice
f
N
K
1 p
kg
4
5
ng
e
g
r
o
er		 3
4
5		 5
7
4		 Fe
d c
ion
t
e
on
su
mp

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 10

(4) Annual harvest volume converted to live weight (0.83) multiplied with feed conversion ratio (1.3) Assuming stable production and feed consumption between years and across months

(5) 60 days credit time on feed

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