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Mowi ASA

Investor Presentation • Feb 15, 2017

3665_rns_2017-02-15_3374b182-d88d-4177-ac97-98bfc994959f.pdf

Investor Presentation

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Marine Harvest

1

Q4 2016 Presentation 15 February 2017

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 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 2015 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

  • 2016 a great year with record earnings and cash flow generation
  • Record high quarterly operational EBIT of EUR 259 million
  • Strong operational performance in all entities
  • All-time high salmon prices driven by strong demand and decline in supply
  • Quarterly dividend of NOK 2.80 per share

Key financials

Gr
f
Ma
ine
Ha
t
in
ig
r
rve
s
ou
p -
m
a
ur
es
Un
dite
d E
UR
mi
llio
au
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
Op
t
ion
l re
d o
t
he
inc
era
a
ve
nu
e a
n
r
om
e		 1,
0
1
8.
1		 8
6
6.
7
17%		 3,
5
0
9.
8
12%		 3,
1
2
1.
1
Op
ion
l
E
B
I
T
t
1)
era
a		 2
5
9.
4		 8
9.
7
189
%		 7
0
0.
2
102		 3
4
6.
8
%
Ca
h
f
low
fro
ion
t
s
m
op
era
s		 1
6
3.
2		 2
2.
9		 6
9
3.
2		 2
3
3.
3
(
)
Ne
t
in
ter
t-
be
ing
de
b
t
N
I
B
D
es
ar		 8
9
0.
0		 9
9
9.
7		 8
9
0.
0		 9
9
9.
7
2)
Un
de
ly
ing
E
P
S
(
E
U
R
)
r		 0.
4
3		 0.
1
4		 1.
1
3		 0.
5
2
3)
Ne
h
f
low
ha
(
E
U
R
)
t c
as
p
er
s
re		 0.
2
5		 -0.
1
6		 1.
2
3		 0.
0
2
-
D
iv
i
de
d
de
lar
d a
d p
i
d p
ha
(
N
O
K
)
n
c
e
n
a
er
s
re		 2.
3
0		 1.
4
0		 8.
6
0		 5.
2
0
4)
R
O
C
E		 4
4.
9
%		 1
3.
4
%		 2
8.
1
%		 1
3.
1
%
Ha
t v
lum
(
t
te
d w
ig
h
t
ton
lm
)
rve
s
o
e
g
u
e
ne
s s
a
on		 9
9
6
3
4		 1
1
0
1
5
5
%
-10		 3
8
0
6
2
1
-9%		 4
2
0
1
4
8
5)
Op
t
ion
l
E
B
I
T -
E
U
R
kg
- T
ta
l
era
a
p
er
o		 2.
6
0		 0.
8
1		 1.
8
4		 0.
8
3
No
rw
ay		 2.
0
7		 1.
4
7		 2.
1
8		 1.
3
7
Sc
t
lan
d
o		 1.
8
3		 0.
3
0
-		 0.
9
1		 0.
3
5
Ca
da
na		 3.
3
3		 0.
3
6		 2.
5
3		 0.
3
4
C
h
i
le		 2.
6
1		 1.
3
1
-		 0.
1
1		 0.
8
2
-

Salmon prices – weekly reference prices

Record high prices in Europe, Americas and Asia in Q4 2016

C
h
t
t
o
n
r
a
c
s
a
r
e		 5
2
%		 6
8
%		 0
%		 1
0
%
S
i
h
u
p
e
r
o
r
s
a
r
e		 9
4
%		 9
4
%		 8
7
%		 9
4
%

Operational EBIT comparison

Norway

SA
LM
ON
O
F N
OR
W
EG
IAN
O
RIG
IN
EUR
illio
m
n		 Q
4 2
01
6		 Q
4 2
01
5
Op
ion
l
E
B
I
T
t
er
a
a		 8
1
1.
7		 9
8
7.
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 6
3
5
9
5		 6
6
6
3
8
Op
(
)
t
ion
l
E
B
I
T
kg
E
U
R
er
a
a
p
er		 2.
0
7		 1.
4
7
f w
h
ic
h
Fe
d
- o
e		 0.
1
7		 0.
1
2
f w
h
ic
h
Ma
ke
ts
- o
r		 0.
2
0		 0.
1
4
f w
h
ic
h
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
3
1		 0.
2
4
Ex
ion
l
i
inc
l
in
E
B
I
T
t
tem
ce
p
a
s
op		 2
6.
2
-		 2
1
5.
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
4
1
-		 0.
3
8
-
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 9
0
%		 1
0
3
%
Co
tra
t s
ha
n
c
re		 5
2
%		 5
0
%
Su
ior
ha
p
er
s
re		 9
4
%		 9
%
5
  • Record quarterly results due to all-time high prices
  • Contract share of 52% negatively impacted price achievement
  • Biological issues persist
  • Expect costs to increase in the first half of 2017 on low volumes

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 proportion of their sales exposure through third party end product contracts.

Note: Including contribution from Sales and Marketing

Scotland

S
A
L
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
t
io
l
E
B
I
T
er
a
na		 7
2
1.		 -4
2
(
G
)
Ha
t v
lum
W
E
rve
s
o
e		 1
1
8
0
5		 1
0
9
4
5
Op
t
io
l
E
B
I
T
kg
(
E
U
R
)
er
a
na
p
er		 1.
8
3		 0.
3
0
-
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
3
2		 0.
2
3
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
8		 0.
6
6
-
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 0.
9
-		 5.
2
-
(
)
Ex
t
ion
l
i
tem
kg
E
U
R
ce
p
a
s p
er		 0.
0
8
-		 0.
3
7
-
Pr
ice
h
iev
/re
fer
ice
t
a
c
em
en
en
ce
p
r		 9
1
%		 1
1
1
%
Co
tra
t s
ha
n
c
re		 6
8
%		 5
7
%
Su
ior
ha
p
er
s
re		 9
%
4		 9
3
%
  • Very good spot price development
  • Reduced volumes due to prior biological challenges
  • High contract share
  • Turnaround process on track
  • Expect costs to further decrease in 2017

Canada

S
A
L
M
O
N
O
F
C
A
N
A
D
I
A
N
O
R
I
G
I
N
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
io
l
E
B
I
T
t
er
a
na		 6
3
2.		 3.
4
Ha
lum
(
G
W
E
)
t v
rve
s
o
e		 9
6
9
7		 9
3
8
3
Op
t
io
l
E
B
I
T
kg
(
E
U
R
)
er
a
na
p
er		 3.
3
3		 0.
3
6
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
4
1		 0.
0
7
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
0		 0.
0
0
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 0.
0		 0.
5
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
0
0		 0.
0
5
-
Pr
ice
h
iev
t
/re
fer
ice
a
c
em
en
en
ce
p
r		 1
0
1
%		 9
8
%
Co
ha
tra
t s
n
c
re		 0
%		 0
%
Su
ior
ha
p
er
s
re		 8
7
%		 9
0
%
  • Very good operations and financial results
  • Continued favorable price developments
  • Good harvest volumes
  • Harvested larger sized fish
  • Expect stable costs going forward

Chile

S
A
L
M
O
N
O
F
C
H
I
L
E
A
N
O
R
I
G
I
N
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
io
l
E
B
I
T
t
er
a
na		 1
9.
8		 1
9.
4
-
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 7
5
7
7		 1
4
7
5
0
Op
io
l
E
B
I
T
kg
(
E
U
R
)
t
er
a
na
p
er		 2.
6
1		 1.
3
1
-
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
2
6		 0.
0
5
f w
Co
h
ic
h
M
H
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
0		 0.
0
0
Ex
ion
l
i
inc
l
in
E
B
I
T
t
tem
ce
p
a
s
op		 0.
0		 1.
2
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
0
0		 0.
0
8
-
Pr
ice
h
iev
/re
fer
ice
t
a
c
em
en
en
ce
p
r		 9
9
%		 1
0
%
5
Co
tra
t s
ha
n
c
re		 1
0
%		 1
0
%
Su
ior
ha
p
er
s
re		 9
%
4		 9
0
%
  • Record high prices on reduced supply
  • Significant volume reduction due to the algal bloom in March 2016
  • Improved cost level in quarter
  • Harvesting from good sites
  • Full cost in box USD 4.74 per kg (GWE) in the quarter
  • Costs expected to increase substantially in the first quarter on low volumes

Ireland and Faroes

S
A
L
M
O
N
O
F
I
R
I
S
H
O
R
I
G
I
N
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
io
l
E
B
I
T
t
er
a
na		 3.
0		 0.
1
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 2
6
7
7		 2
7
6
1
Op
io
l
E
B
I
T
kg
(
E
U
R
)
t
er
a
na
p
er		 1.
1
3		 0.
0
2
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
0
1		 0.
0
1
f w
Co
h
ic
h
M
H
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
9		 0.
1
3
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 0.
7
-		 1.
7
-
Ex
ion
l
i
kg
(
E
U
R
)
t
tem
ce
p
a
s p
er		 0.
2
4
-		 0.
6
0
-
Pr
ice
h
iev
t
/re
fer
ice
a
c
em
en
en
ce
p
r		 na na
Co
tra
t s
ha
n
c
re		 %
8
4		 %
7
8
Su
ior
ha
p
er
s
re		 9
2
%		 8
%
7
S
A
L
M
O
N
O
F
F
A
R
O
E
S
E
O
R
I
G
I
N
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
io
l
E
B
I
T
t
er
a
na		 1
1
5.		 3
5.
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 4
2
1
2		 2
9
2
3
Op
io
l
E
B
I
T
kg
(
E
U
R
)
t
er
a
na
p
er		 3.
5
9		 1.
8
0
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
1
2		 0.
3
3
f w
Co
h
ic
h
M
H
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
0		 0.
0
0
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 2.
0
-		 0
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
4
7
-		 0.
0
0
/re
fer
Pr
ice
h
iev
t
ice
a
c
em
en
en
ce
p
r		 %
9
9		 %
1
0
5
Co
ha
tra
t s
n
c
re		 9
%		 0
%
Su
ior
ha
p
er
s
re		 9
3
%		 9
0
%
  • Good contribution from Marine Harvest Ireland
  • Very good contribution from Marine Harvest Faroes in the quarter
  • No harvesting from February to September 2017 due to lack of sites

Consumer Products

C
O
N
S
U
M
E
R
P
R
O
D
U
C
T
S
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
t
ing
er
a
re
ve
nu
es		 4
2
7.
8		 3
6
8.
8
Op
io
l
E
B
I
T
t
er
a
na		 2
2.
9		 9.
8
Op
ion
l
E
B
I
T
%
t
er
a
a		 5.
4
%		 2.
6
%
(
)
Vo
lum
l
d
to
d.
ig
h
t
e s
o
nn
es
p
ro
we		 3
5
2
2
2		 3
3
3
6
7
Ex
t
ion
l
i
te
ce
p
a
ms		 0 0
Vo
lum
ha
lm
e s
re
sa
on		 7
9
%		 7
6
%
Re
ha
lm
ve
nu
e s
re
sa
on		 8
2
%		 8
0
%
  • 14% volume growth and impressive demand response in 2016
  • Good quarterly results in a challenging raw material price environment
  • Operational improvements and sales price adjustments
  • Building a new value added products plant in Canada

Feed

F
E
E
D
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5
Op
t
ing
er
a
re
ve
nu
es		 2
1
0
7.		 1
0
2.
4
Op
t
io
l
E
B
I
T
er
a
na		 8
1
0.		 8.
0
Op
t
ion
l
E
B
I
T
%
er
a
a		 1
0.
1
%		 7.
9
%
Fe
d s
l
d v
lum
e
o
o
e		 8
6
0
1
4		 8
8
4
8
6
Fe
d p
du
d v
lum
e
ro
ce
o
e		 8
9
6
7
2		 9
5
9
6
2
Ex
ion
l
i
t
tem
ce
p
a
s		 0 0
  • Very good operational and financial results
  • 86% feed self-sufficiency rate in Norway
  • Increased plant capacity to 330,000 tonnes (approx 310,000 tonnes in 2016)

Fourth Quarter 2016 Financials, Markets and Harvest Volumes

Profit and Loss

Ma
ine
Ha
Gr
t
r
rve
s
ou
p
EU
R m
illio
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
Op
io
l r
d
he
inc
t
t
er
a
na
ev
en
ue
a
n
o
r
om
e		 1
0
1
8.
1
17%		 8
6
6.
7		 3
0
9.
8
5
12%		 3
1
2
1.
1
Op
io
l
E
B
I
T
t
1)
er
a
na		 2
5
9.
4
189
%		 8
9.
7		 7
0
0.
2
102
%		 3
4
6.
8
C
ha
in
l
ize
d
in
l m
in
ter
ng
e
un
rea
na
arg		 1
8.
7
-		 1.
4
-		 3
6
5.
-		 2.
2
-
Ga
/
fro
in
los
de
iva
t
ive
s
m
r
s		 1
7.		 6.
3
-		 8.
3		 1
2.
5
-
Ne
fa
ir v
lue
d
j
f
b
iom
t
tm
t o
tra
ts
a
a
us
en
as
s,
on
ero
us
co
n
c		 4.
7
7		 1
0
1
7.		 2
7
7.
5		 9.
3
Re
ing
tuc
tur
ts
s
co
s		 0.
9
-		 0.
2		 4
5.
-		 1
2
5.
-
O
he
ion
l
i
t
t
tem
r n
on
-op
era
a
s		 0.
0		 0.
0		 1.
3		 2.
4
Inc
fro
ia
d c
ies
te
om
e
m
as
so
c
om
p
an		 2
1.
0		 1
0.
8		 6
2.
6		 2
3.
4
Im
irm
los
f
ixe
d a
t
ts
p
a
en
se
s -
ss
e		 1.
7		 3.
7
-		 1
7.
7
-		 6.
8
-
E
B
I
T		 3
4
4.
3		 1
9
6.
3		 9
9
1.
2		 3
4
5.
3
Ne
t
f
ina
ia
l
i
tem
nc
s		 6
8.
5
-		 4
5.
9
-		 2
3
2.
0
-		 9
5.
2
-
Ea
ing
be
fo
ta
rn
s
re
x		 2
8
7
5.		 1
0.
4
5		 9.
2
7
5		 2
0.
1
5
Pr
f
i
los
fo
he
io
d
t o
t
o
r
s
r
p
er		 2
1
0.
9		 9
1.
7		 3
9.
3
5		 1
8.
3
5
S
(
)
E
P
E
U
R		 0.
4
7		 0.
2
0		 1.
2
0		 0.
3
6
Un
de
ly
ing
E
P
S
(
E
U
R
)
r		 0.
4
3		 0.
1
4		 1.
1
3		 0.
5
2
f
(
)
Ne
t c
h
low
ha
E
U
R
as
p
er
s
re		 0.
2
5		 0.
1
6
-		 1.
2
3		 0.
0
2
-
D
iv
i
de
d
de
lar
d a
d p
i
d p
ha
(
N
O
K
)
n
c
e
n
a
er
s
re		 2.
3
0		 1.
4
0		 8.
6
0		 5.
2
0

Financial position

Gr
Ma
ine
Ha
t
r
rve
s
ou
p
EU
R m
illio
n		 3
1.
1
2.
2
0
1
6		 3
0.
0
9.
2
0
1
6		 3
1.
1
2.
2
0
1
5
No
t a
ts
n-c
urr
en
ss
e		 2
2
4
8.
9		 2
2
0
1.
8		 2
1
3
4.
9
Cu
t a
ts
rre
n
ss
e		 2
5
5
4.
5		 2
2
4
1.
5		 2
0
6
1.
2
To
ta
l a
ts
ss
e		 4
8
0
3.
5		 4
4
4
3.
3		 4
1
9
6.
1
Eq
i
ty
u		 2
0
6
2.
4		 1
9
6
8.
4		 1
8
9
6
5.
No
t
l
ia
b
i
l
i
t
ies
n-c
urr
en		 1
8
9
8.
0		 1
7
6
5.
5		 1
6
8
4.
7
Cu
t
l
ia
b
i
l
i
t
ies
rre
n		 8
4
3.
1		 7
0
9.
5		 6
1
5.
9
To
ta
l e
i
ty
d
l
ia
b
i
l
i
t
ies
q
u
an		 4
8
0
3.
5		 4
4
4
3.
3		 4
1
9
6.
1
Ne
t
in
te
t-
be
ing
de
b
t
res
ar		 8
9
0.
0		 8
7
6.
7		 9
9
9.
7
Eq
i
io
ty
t
u
ra		 4
2.
9
%		 4
4.
3
%		 4
2
%
5.
C
h
F
l
a
s
o		 d
a
n
w		 N
t
e		 I
t
t
n
e
r
e
s		 B
i
e
a
r
n
g		 D
b
t
e
--------------------------------- ------------------ ------------- -------------------------------------- --------------------------------- ------------------
Ma
ine
Ha
Gr
st
r
rve
ou
p
EUR
mi
llion		 Q
4
2
0
1
6		 Q
4
2
0
15		 2
0
1
6		 2
0
15
N
I
B
D
be
inn
ing
f p
io
d
g
o
er		 8
7
6.
7
-		 9
17
9
-		 9
9
9.
7
-		 1
0
3
2.
6
-
Op
t
ion
l
E
B
I
T
D
A
era
a
C
ha
in
k
ing
ita
l
ng
e
wo
r
ca
p		 2
9
6.
0
1
0
5.
1
-		 1
2
4.
4
-7
9.
5		 8
4
2.7
1
4.
9
-		 4
8
6.
6
1
4
6.
2
-
Ta
i
d
xe
s p
a
Ot
he
d
j
tm
ts
r a
us
en		 1
0.
3
-
17
4
-		 1
0.
9
-
1
1.
0
-		 9
2.
6
-
4
2.
0
-		 6
8.
3
-
3
8.
8
-
Ca
h
f
low
fro
ion
t
s
m
op
era
s
Ca
Ne
t
p
ex		 1
6
3.
2
2
-5
7.		 2
2.
9
9.
-5
7		 6
9
3.
2
1
9
9.
2
-		 2
3
3.
3
2
1
0.
3
-
Ot
he
inv
tm
ts
r
es
en
Ca
h
f
low
fro
inv
tm
ts
s
m
es
en		 0.
0
2
-5
7.		 1
8.
4
-
8.
1
-7		 6
6.
6
1
3
2.
6
-		 2
2.
0
1
8
8.
3
-
Ne
int
d
f
ina
ia
l
ite
i
d
t
st
ere
an
nc
ms
p
a		 6.
4
-		 1
1.
6
-		 2
2.
9
-		 3
9.
5
-
Ot
he
ite
r
ms
Bo
ds
rte
d t
ity
n
co
nve
o e
q
u		 1
0.
1
0.
0		 6
2.
2
0.
0		 -7.
2
0.
0		 1
3.
7
-
3
1
8.
2
D
iv
i
de
d
d
ist
i
bu
te
d
n
r
Tra
lat
ion
f
fec
int
be
ing
de
bt
t o
st-
ns
e
n
ere
ar		 1
1
3.
9
-
9.
0
-		 6
7.
6
-
9.
6
-		 4
1
8.
1
-
2.7
-		 25
5.
9
-
2
1.
1
-
N
I
B
D e
d o
f p
io
d
n
er		 8
9
0.
0
-		 9
9
9.
7
-		 8
9
0.
0
-		 9
9
9.
7
-
1):
De
bt
d
ist
i
bu
t
ion
r
E
U
R
U
S
D		 7
0
%
1
3		 7
2
%
1
3		 7
0
%
1
3		 7
2
%
1
3
G
B
P		 %
4
%		 %
4
%		 %
4
%		 %
4
%
Ot
he
ies
r c
urr
en
c		 %
1
3		 %
1
1		 %
1
3		 %
1
1

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

2017 Cash Flow Guidance

  • Working capital buildup EUR ~120m
  • -Support further organic growth
  • Capital expenditures EUR ~240m
  • Freshwater expansion projects EUR ~50m
  • New feed plant in Scotland EUR ~35m (in total EUR ~ 110m)
  • Consumer Products expansion initiatives EUR ~25m
  • Interest paid EUR ~25m
  • Taxes paid EUR ~150m
  • Long term NIBD target of EUR 1,050m
  • Quarterly dividend in Q1 2017 of NOK 2.80 per share (repayment of paid in capital)

Overview financing

  • EUR 805m Facility Agreement
  • Maturity Q4 2019
  • Covenants:
    • 35% equity ratio
  • Accordion option EUR 45m
  • Lenders: DNB, Nordea, Rabobank and ABN Amro

EUR 340m issued in November 2015

Tenor 5 years, annual coupon 0.125%(1), conversion price EUR 15.0765

EUR 375m issued in May 2014

  • Tenor 5 years, annual coupon 0.875%(1), conversion price EUR 9.5273
  • To date early conversion to equity of principal amount in total EUR 21 million
  • NOK 1,250m bond issued in March 2013
  • Tenor 5 years, NIBOR + 3.5%
E
i
d
t
t
s
m
a
e		 l
v
o
u
m
e
s		 C
d
t
o
m
p
a
r
e		 E
l
t.
s
v
o
u
m
e
s
S
l
i
u
p
p
e
r
s		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 V
l
o
u
m
e		 % Q
3
2
0
1
6
N
o
r
w
a
y		 2
8
9
0
0
5		 3
0
9
9
0
0		 2
0
4
0
0
-		 6.
6
%
-		 2
1
8
0
0
7
S
t
l
d
c
o
a
n		 3
8
7
0
0		 4
0
8
0
0		 2
1
0
0
-		 %
5.
1
-		 3
6
6
0
0
F
I
l
d
a
r
o
e
s
a
n
s		 2
0
1
0
0		 2
1
7
0
0		 1
6
0
0
-		 7.
4
%
-		 1
4
9
0
0
I
l
d
r
e
a
n		 3
8
0
0		 4
1
0
0		 3
0
0
-		 %
7.
3
-		 3
9
0
0
T
t
l
E
o
a
r
o
p
e
u		 3
5
2
1
0
0		 3
7
6
5
0
0		 2
4
4
0
0
-		 %
6.
5
-		 3
2
7
2
0
0
C
h
i
l
e		 1
1
0
0
5
7		 1
2
0
0
5
5		 3
6
8
0
0
-		 2
4.
1
%
-		 1
0
1
1
0
0
N
t
h
A
i
o
r
m
e
r
c
a		 3
7
2
0
0		 3
6
8
0
0		 4
0
0		 1.
1
%		 3
7
5
0
0
T
t
l
A
i
o
a
m
e
r
c
a
s		 1
5
2
9
0
0		 1
8
9
3
0
0		 3
6
4
0
0
-		 1
9.
2
%
-		 1
3
8
6
0
0
A
t
l
i
s
r
a
a
u		 1
3
6
0
0		 1
4
5
0
0		 9
0
0
-		 %
6.
2
-		 1
2
7
0
0
O
h
t
e
r		 4
1
0
0		 3
6
0
0		 5
0
0		 1
3.
9
%		 3
9
0
0
T
l
t
o
a		 2
2
0
0
5
7		 8
3
9
0
0
5		 6
1
2
0
0
-		 1
0.
%
5
-		 4
8
2
4
0
0

Supply development

Source: Kontali

-Negative global supply growth in line with expectations

  • Europe: Approx 18,000 tonnes lower than expected mainly due to mortality and lower average harvest weights in Norway

-Chile: Approx 15,000 tonnes more than expected as some farmers harvested early (biology)

Development in reference prices

Re
fer
ice
en
ce
pr
s		 Q4
20
16
Ma
rke
t		 Ch
an
ge
vs
Q4
20
15		 Q4
20
16
NO
K		 Ch
an
ge
vs
Q4
20
15
No
(
1)
rwa
y		 EU
R 7
.39		 52
.7%		 NO
K 6
6.7
2		 47
.8%
Ch
ile
(
2)
Ch
ile,
GW
E (
3)		 US
D 5
.55
US
D 6
.50		 74
.0%
94
.0%		 NO
K 4
6.7
2
NO
K 5
4.6
8		 71
.4%
91
.2%
No
rth
Am
eric
a (
4)
GW
E (
3)
No
rth
Am
eric
a,		 US
D 3
.78
US
.86
D 7		 61
.5%
73
.5%		 NO
K 3
1.7
9
NO
K 6
6.1
2		 59
.1%
71
.0%

Notes:

(1) NASDAQ average superior GWE/kg (gutted weight equivalent) (2) Urner Barry average D trim 3-4 lbs FOB Miami (3) Reference price converted back-to-plant equivalent in GWE/kg (4) Urner Barry average GWE 10-12 lbs FOB Seattle

G
l
b
l
o
a		 o
v		 l
m
e
u		 b
y		 k
t
m
a
r
e
---------------------------- -------- ------------------ -------- ----------------------------
Est
im
ate
d v		 olu
me
s		 Co
mp
are		 d t
o Q
4 2
01
5
Es
t. v
olu
me
s		 12
mo		 nth
ari
co
mp
so
n
Ma
rke
ts		 Q
4 2
01
6		 Q
4 2
01
5		 Vo
lum
e		 % Q
3 2
01
6		 LT
M		 PT
M		 %
EU 25
3 2
00		 27
3 3
00		 -20
10
0		 -7.
4%		 24
6 6
00		 94
9 2
00		 97
9 1
00		 -3.
1%
Ru
ia
ss		 19
80
0		 24
50
0		 -4
70
0		 .2%
-19		 16
80
0		 67
50
0		 95
70
0		 .5%
-29
Ot
he
r E
uro
pe		 20
20
0		 22
30
0		 -2
100		 -9.
4%		 16
90
0		 71
10
0		 81
30
0		 -12
.5%
To
tal
Eu
rop
e		 29
3 2
00		 32
0 1
00		 -26
90
0		 -8.
4%		 28
0 3
00		 1 0
87
80
0		 1 1
56
100		 9%
-5.
US
A		 87
00
0		 96
50
0		 -9
50
0		 -9.
8%		 87
40
0		 37
2 8
00		 37
4 0
00		 -0.
3%
Bra
zil		 19
60
0		 25
10
0		 -5
50
0		 -21
.9%		 18
90
0		 83
70
0		 99
50
0		 -15
.9%
Ot
he
r A
rica
me
s		 28
30
0		 29
50
0		 -1
20
0		 -4.
1%		 23
50
0		 10
1 0
00		 10
7 6
00		 -6.
1%
To
tal
Am
eri
ca
s		 13
4 9
00		 15
1 1
00		 -16
20
0		 -10
.7%		 12
9 8
00		 00
55
7 5		 58
1 1
00		 -4.
1%
Ch
ina
/ H
Ko
on
g
ng		 19
00
0		 19
70
0		 -70
0		 -3.
6%		 19
60
0		 78
80
0		 76
90
0		 2.5
%
Jap
an		 16
60
0		 17
90
0		 -1
30
0		 -7.
3%		 14
60
0		 58
40
0		 54
50
0		 7.2
%
So
uth
Ko
/ T
aiw
rea
an		 9 5
00		 11
30
0		 -1
80
0		 -15
.9%		 9 0
00		 40
20
0		 46
10
0		 -12
.8%
Ot
he
r A
sia		 16
00
0		 20
30
0		 -4
30
0		 -21
.2%		 14
70
0		 65
50
0		 66
20
0		 -1.
1%
To
tal
As
ia		 61
10
0		 69
20
0		 -8
100		 .7%
-11		 57
90
0		 24
2 9
00		 24
3 7
00		 3%
-0.
All
ot
he
ark
ets
r m		 30
20
0		 29
30
0		 90
0		 3.1
%		 27
70
0		 10
6 3
00		 99
40
0		 6.9
%
To
tal		 51
9 4
00		 56
9 7
00		 -50
30
0		 -8.
8%		 49
5 7
00		 1 9
94
50
0		 2 0
80
30
0		 -4.
1%
Infl
US
fro
Eu
to
ow
m
rop
e		 20
30
0		 20
60
0		 -30
0		 -1.
5%		 19
20
0		 79
20
0		 76
30
0		 3.8
%
Infl
U f
C
to
E
hile
ow
rom		 7 7
00		 9 7
00		 -2
00
0		 .6%
-20		 11
00
0		 48
50
0		 40
40
0		 .0%
20

Impressive strong demand globally at record high salmon prices

  • -Europe: Continued strong growth
  • -Asia: Strong growth. Sourcing impacted by lack of large sized European salmon
  • -US: Favourable development

Source: Kontali

Note: Atlantic Salmon (GWE tonnes), LTM Last twelve months, PTM Previous twelve months 25

Industry supply outlook Guidance of low growth in 2017 from -1% to +4%

201
4		 201
5		 201
6		 201
7		 Est
ima
tes
20
17
GW
E to
s (t
hou
ds)
nne
san		 Est
ima
te		 Low Y/Y
th
gr
ow		 Hig
h		 Y/Y
th
gr
ow
Nor
w a
y		 1 0
79		 1 1
11		 1 0
54		 1 0
55		 1 0
30		 -2% 1 0
80		 2%
UK 153 150 144 155 150 4% 159 10%
Far
Isla
nds
oe		 74 69 68 74 72 5% 76 11%
Tot
al E
uro
pe		 1 3
07		 1 3
30		 1 2
66		 1 2
84		 1 2
52		 -1% 1 3
15		 4%
Chil
e		 525 538 454 473 460 1% 485 7%
Nor
th A
ica
mer		 107 140 148 143 138 -7% 148 0%
Tot
al A
rica
me
s		 632 678 602 616 598 -1% 633 5%
Oth
er		 67 79 79 84 82 4% 86 9%
Tot
al		 2 0
05		 2 0
87		 1 9
47		 1 9
83		 1 9
32		 -1% 2 0
34		 4%
Q1
201
4		 Q1
201
5		 Q1
201
6		 Q1
201
7		 EST
IMA
TES
Q1
20
17
GW
E to
s (t
hou
ds)
nne
san		 Est
ima
te		 Low Q/Q
th
gr
ow		 Hig
h		 Q/Q
th
gr
ow
Nor
w a
y		 236 260 244 227 222 -9% 232 -5%
UK 33 28 34 36 35 4% 37 10%
Far
Isla
nds
oe		 16 13 16 19 17 4% 20 22%
Tot
al E
uro
pe		 285 301 294 282 274 -7% 289 -2%
Chil
e		 135 134 144 107 104 -28
%		 109 -24
%
Nor
th A
ica
mer		 23 29 33 33 32 -4% 34 2%
Tot
al A
rica
me
s		 157 163 177 140 136 -23
%		 143 -19
%
Oth
er		 14 17 19 20 19 1% 21 12%
Tot
al		 457 481 490 441 429 %
-12		 453 -8%
Q2-
Q4		 Q2-
Q4		 Q2-
Q4		 Q2-
Q4		 EST
TES
Q2
-Q4
20
17
IMA
GW
E to
s (t
hou
ds)
nne
san		 201
4		 201
5		 201
6		 201
7E		 Low Q/Q
th
gr
ow		 Hig
h		 Q/Q
th
gr
ow
Nor
w a
y		 843 851 810 828 808 0% 848 5%
UK 120 121 110 119 115 4% 122 10%
Far
Isla
nds
oe		 58 57 52 56 55 6% 56 8%
Tot
al E
uro
pe		 1 0
22		 1 0
29		 973 1 0
02		 978 1% 1 0
26		 5%
Chil
e		 390 405 310 366 356 15% 376 21%
Nor
th A
ica
mer		 85 110 115 110 106 -8% 114 -1%
Tot
al A
rica
me
s		 474 515 425 476 462 9% 490 15%
Oth
er		 53 62 60 64 63 5% 65 8%
Tot
al		 1 5
49		 1 6
07		 1 4
57		 1 5
42		 1 5
03		 3% 1 5
81		 8%

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algal blooms etc. and market developments. 26

M
H
G
2
0
1
7		 l
o
m
e
v
u		 i
d
g
a
n
c
e
u
--------------------------------- ---------------------------- --------------------------------------
Sa
lm
ie
on
sp
ec
s
G
(
)
W
E
ton
1
0
0
0
ne
s		 2
0
1
5
Ac
tua
l		 Q
1
2
0
1
6
Ac
tua
l		 Q
2
2
0
1
6
Ac
tua
l		 Q
3
2
0
1
6
Ac
tua
l		 Q
4
2
0
1
6
Ac
tua
l		 2
0
1
6
Ac
tua
l		 Q
1
2
0
1
7
Gu
i
da
nc
e		 2
0
1
7
Gu
i
da
nc
e
No
rw
ay		 2
5
5		 5
4		 5
4		 6
5		 6
4		 2
3
6		 4
9		 2
5
0
C
h
i
le		 6
2		 1
5		 7 7 8 3
7		 6 4
5
Ca
da
na		 4
0		 1
2		 1
2		 1
0		 1
0		 4
3		 9 4
2
Sc
t
la
d
o
n		 5
0		 1
3		 1
1		 1
0		 1
2		 4
5		 1
8		 5
4
O
t
he
Un
i
ts
r		 1
3		 3 4 6 7 1
9		 2 1
3
To
ta
l		 4
2
0		 9
7		 8
7		 9
7		 1
0
0		 3
8
1		 8
4		 4
0
3

2017 volume guidance unchanged of 403,000 tonnes GWE

Norway reduced by 2,000 tonnes and Scotland increased by 2,500 tonnes

2017 vs 2016 volumes

  • Partial recovery of volumes in Norway and Chile
  • Growth in Scotland
  • Faroes to decline due to planned fallowing

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

Outlook

  • Market balance expected to remain tight in 2017 (low supply growth)
  • Future prices (NASDAQ) next twelve months are EUR 7.2 per kg (NOK 65 per kg)
  • Sea lice the number one industry challenge
  • Non-medicinal treatment strategy continues
  • Acquisition of Gray Aqua farming assets in East Canada subject to Court approval
  • From Level II ADR programme to a sponsored Level I programme
  • From exchange to over-the-counter in the US
  • Quarterly dividend of NOK 2.80 per share (repayment of paid in capital)

Appendix

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
  • Long term NIBD target of EUR 1,050m
  • EUR 1.8 per kg harvest volume (equivalent to ca NOK 15 per kg)
  • -Residual attributed to non-farming businesses

Contract coverage and sales contract policy

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		 M
he
dg
in
(
1
)
te
ax
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
%		 7
0
%
5.
Ire
lan
d		 4
0.
0
%		 1
0
0.
0
%
Fa
ro
es		 0.
0
%		 3
0.
0
%

Notes:

(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

Q1 2017 contract shares (% of guided volume):

  • Norway 53%
  • Scotland 47%
  • Canada 0%
  • Chile 34%
  • Contracts typically have a duration of 3-12 months
  • Contracts are entered into on a regular basis
  • Policy opens for contracts of up to 48 month duration

Quarterly segment overview

SO UR
CE
S O
F O		 RIG
IN
QT
D
EUR
mil
lion		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 Gro
up
OP
ER
AT
ION
AL
EB
IT
FA
RM
ING		 128
.5		 15
.8		 28
.5		 17
.8		 2.5 14
.6		 207
.7
SA
LE
S A
ND
MA
RK
ET
ING
Ma
rke
ts		 12
.6		 3.8 4.0 2.0 0.0 0.5 0.0 23
.0
Co
r P
rod
uct
nsu
me
s		 19
.9		 2.1 0.0 0.0 0.5 0.0 0.5 22
.9
SU
BT
OT
AL		 160
.9		 21
.7		 32
.6		 19
.8		 3.0 15
.1		 0.5 253
.6
Fee
d		 10
.8		 10.
8
2)
Oth
ntit
ies
er e		 -5.
0		 -5.
0
TO
TA
L		 171
.8		 21
.7		 32
.6		 19
.8		 3.0 15
.1		 -4.
5		 259
.4
Ha
olu
(
GW
E,
sal
n)
st v
rve
me
mo		 63
595		 11
805		 9 7
69		 7 5
77		 2 6
77		 4 2
12		 99
634
3) -
Op
tion
al E
BIT
r kg
(
EU
R)
tot
al G
era
pe
rou
p		 2.7
0		 1.8
3		 3.3
3		 2.6
1		 1.1
3		 3.5
9		 2.6
0
- of
wh
ich
Fe
ed		 0.1
7		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.1
1
- of
wh
ich
M
ark
ets		 0.2
0		 0.3
2		 0.4
1		 0.2
6		 0.0
1		 0.1
2		 0.2
3
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.3
1		 0.1
8		 0.0
0		 0.0
0		 0.1
9		 0.0
0		 0.2
3
AN
AL
YT
ICA
L D
AT
A
4)
Pri
ach
ieve
nt/
refe
ice
(
%)
ce
me
ren
ce
pr		 90% 91
%		 10
1%		 99
%		 na 99
%		 92
%
Co
har
e (
%)
ntra
ct s		 52% 68
%		 0% 10
%		 84
%		 9% 45
%
Qu
e (
%)
alit
erio
har
y -
sup
r s		 94% %
94		 %
87		 %
94		 %
92		 %
93		 %
93
Ex
tion
al i
tem
s in
clu
ded
in
Op
tion
al E
BIT
cep
era		 -26
.2		 -0.
9		 0.0 0.0 -0.
7		 -2.
0		 0 -29
.7
Ex
tion
al i
kg
(
EU
R)
tem
cep
s p
er		 -0.
41		 -0.
08		 0.0
0		 0.0
0		 -0.
24		 -0.
47		 -0.
30
GU
IDA
NC
E
Q1
20
17
har
t vo
lum
e (
GW
E)
ves		 49
00
0		 18
00
0		 9
000		 6
000		 1
000		 1
000		 84
00
0
20
17
har
t vo
lum
e (
GW
E)
ves		 25
0 0
00		 53
50
0		 42
00
0		 45
00
0		 9
000		 3
500		 40
3 0
00
Q1
20
17
e (
%)
tra
ct s
har
con		 53
%		 %
47		 0% 34
%		 95
%		 6% %
45
Y
T
D		 t i
s
e
g
m
e
n		 o
v
e
r
v
e
w
SO
UR
CE
S O
F O
RIG
IN
YT
D
EUR
mil
lion		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Ot
he
r		 Gr
ou
p
OP
ION
ER
AT
AL
EB
IT
FA
RM
ING		 41
9.7		 36
.1		 99
.6		 -8.
0		 5.8 32
.6		 58
5.9
SA
LE
S A
ND
M
AR
KE
TIN
G
Ma
rke
ts		 41
.0		 13
.3		 10
.2		 12
.2		 0.1 1.1 0.0 .9
77
Co
r P
rod
uct
nsu
me
s		 26
.1		 -8.
4		 0.0 0.0 0.4 0.0 1.6 19
.7
SU
BT
OT
AL		 486
.8		 41
.1		 10
9.8		 4.2 6.3 33
.8		 1.6 68
3.5
Fee
d		 28
.1		 28
.1
2)
Oth
itie
ent
er
s		 -11
.4		 -11
.4
TO
TA
L		 514
.8		 41
.1		 10
9.8		 4.2 6.3 33
.8		 -9.
8		 70
0.2
Ha
st
vol
e (
GW
E,
sal
n)
rve
um
mo		 23
5 9
62		 45
046		 43
349		 36
93
1		 8
44
1		 10
893		 38
0 6
21
3) -
Op
tion
al E
BIT
r kg
(
EU
R)
al G
tot
era
pe
rou
p		 2.1
8		 0.9
1		 2.5
3		 0.1
1		 0.7
5		 3.1
0		 1.8
4
- of
wh
ich
Fe
ed		 0.1
2		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
7
- of
wh
ich
M
ark
ets		 0.1
7		 0.3
0		 0.2
3		 0.3
3		 0.0
1		 0.1
0		 0.2
0
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.1
1		 -0.
19		 0.0
0		 0.0
0		 0.0
5		 0.0
0		 0.0
5
AN
AL
YT
ICA
L D
AT
A
4)
Pri
ach
ieve
nt/
refe
ice
(
%)
ce
me
ren
ce
pr		 86% 88
%		 10
0%		 99
%		 na 10
0%		 90
%
Co
ntra
ct
sha
(
%)
re		 49% 66
%		 0% 14
%		 83
%		 4% 42
%
Qu
alit
ior
sha
(
%)
y -
su
per
re		 93% 94
%		 88
%		 90
%		 91
%		 89
%		 92
%
Op
Ex
tion
al i
tem
s in
clu
ded
in
tion
al E
BIT
cep
era		 -96
.6		 -6.
5		 0.0 -13
.3		 -3.
6		 -2.
5		 0 -12
2.6
Ex
tion
al i
kg
(
EU
R)
tem
cep
s p
er		 -0.
41		 -0.
14		 0.0
0		 -0.
36		 -0.
42		 -0.
23		 -0.
32
GU
IDA
NC
E
e (
GW
E)
20
17
har
t vo
lum
ves		 25
0 0
00		 53
50
0		 42
00
0		 45
00
0		 9
000		 3
500		 40
3 0
00
Q1
20
17
sha
(
%)
tra
ct
con
re		 53
%		 47
%		 0% 34
%		 95
%		 6% 45
%

Quarterly segment overview

MH
Op
tin
Un
its
era
g		 FA
RM
ING		 MH
Sa
les
d M
ark
eti
an
ng
Co
nsu
me
r
EUR
mi
llio
n		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 Ma
rke
ts		 Pro
du
cts		 MH
Fe
ed
Rev
and
ot
her
inc
enu
es
om
e		 395
.2		 74
.1		 69
.7		 50
.0		 21
.5		 30
.0		 783
.7		 427
.8		 107
.2
Op
ting
EB
ITD
A
era		 142
.3		 19
.9		 31
.6		 22
.4		 3.3 15
.1		 24
.1		 28
.7		 12
.6
Op
ting
EB
IT
era		 128
.5		 15
.8		 28
.5		 17
.8		 2.5 14
.6		 23
.0		 22
.9		 10
.8
F
air
Va
lue
ad
j o
n b
iom
ntra
cts
/ u
alis
ed
der
ivat
ives
ass
, co
nre		 -24
.4		 53
.3		 27
.2		 -1.
0		 3.4 -12
.0		 0.0 29
.5		 -1.
1
U
aliz
ed
in a
dju
stm
ent
nre
ma
rg		 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -13
.5
R
est
tur
ing
st
ruc
co		 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.
9		 0.0
O
the
atio
nal
ite
r no
n-o
per
ms		 0.0 0.0 0.0 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		 21
.1		 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
W
rite
-do
of
fixe
d a
ts/
inta
ible
wn
sse
ng
s		 -0.
1		 0.0 0.0 1.2 0.0 0.0 0.0 0.7 0.0
EB
IT		 125
.1		 69
.1		 55
.8		 18
.0		 5.9 2.6 23
.0		 52
.2		 -3.
8
Co
ntri
but
ion
to
rati
l E
BIT
fro
m S
&M
ope
ona		 32
.5		 5.9 4.0 2.0 0.5 0.5 -23
.0		 -22
.9
Co
ntri
but
ion
to
rati
l E
BIT
fro
m F
eed
ope
ona		 10
.8		 0.0
Op
tion
al E
BIT
inc
l co
ntri
but
ion
fro
m S
&M
era		 17
1.8		 21
.7		 32
.6		 19
.8		 3.0 15
.1		 0.0 0.0 0.0
Ha
st /
les
lum
rve
sa
vo
e		 63
59
5		 11
80
5		 9
769		 7
577		 2
677		 4
212		 0 35
22
2		 86
01
4
Op
tion
al E
BIT
/kg
inc
l co
ntri
but
ion
fro
m S
&M
(
EU
R)
era		 2.
70		 1.
83		 3.
33		 2.
61		 1.
13		 3.
59
-of
wh
ich
S&
M		 0.
51		 0.
50		 0.
41		 0.
26		 0.
20		 0.
12
-of
wh
ich
Fe
ed		 0.
17

*Volume = harvested volume salmon in tonnes gutted weight

Development in harvest volumes

2
0
1
1		 2
0
1
2		 2
0
1
3		 2
0
1
4		 2
0
1
5		 2
0
1
6		 2
0
1
7
To
l
ta		 To
l
ta		 To
l
ta		 To
l
ta		 Q
1		 Q
2		 Q
3		 Q
4		 To
l
ta		 Q
1		 Q
2		 Q
3		 Q
4		 To
l
ta		 Q
1
E		 Q
2-
Q
4
E		 To
l
ta
No
rw
ay		 2
1
5
7.		 3
2
5
5.		 2
2
2.
5		 2
8.
0
5		 6
5.
2		 6
4.
0		 9
5
8.		 6
6.
6		 2
4.
8
5		 5
4.
0		 5
3.
7		 6
6
4.		 6
3.
6		 2
3
6.
0		 4
9.
0		 2
0
1.
0		 2
0.
0
5
C
h
i
le		 0
2
6.		 2
4
0.		 3
2
8.		 6
7.
5		 1
6.
1		 1
3.
2		 4
1
8.		 1
4.
8		 6
2.
5		 1
5.
4		 7.
1		 9
6.		 7.
6		 3
6.
9		 6.
0		 3
9.
0		 4
5.
0
Ca
da
na		 9
3
3.		 2
4
0.		 1
3
3.		 2
6.
7		 1
0.
5		 1
1.
6		 7
8.		 9.
4		 4
0.
1		 1
1.
6		 1
1.
7		 3
1
0.		 9.
8		 4
3.
3		 9.
0		 3
3.
0		 4
2.
0
Sc
lan
d
t
o		 2
0.
5		 3
4
0.		 4
4
8.		 4
8.
9		 7.
1		 1
2.
4		 6
1
6.		 1
4.
1		 0.
1
5		 1
2.
6		 1
0.
8		 8
9.		 1
1.
8		 4
0
5.		 1
8.
0		 3
5.
5		 3.
5
5
O
(
)
t
he
1
r		 3
1
5.		 3
1
6.		 5
1
1.		 1
7.
8		 0.
6		 2.
9		 4
3.		 5.
7		 1
2.
7		 3.
1		 3.
8		 6
5.		 6.
9		 1
9.
3		 2.
0		 1
0.
5		 1
2.
5
To
ta
l		 8
3
4
2.		 3
3
9
2.		 8
3
4
3.		 9
4
1
8.		 5
9
9.		 2
1
0
4.		 0
1
0
6.		 6
1
1
0.		 1
4
2
0.		 6
9
6.		 2
8
7.		 2
9
7.		 6
9
9.		 6
3
8
0.		 0
8
4.		 0
3
1
9.		 4
0
3.
0

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

2
0
1
1		 2
0
1
2		 2
0
1
3		 2
0
1
4		 2
0
1
5		 2
0
1
6		 2
0
1
7
To
l
ta		 To
l
ta		 To
l
ta		 To
l
ta		 Q
1		 Q
2		 Q
3		 Q
4		 To
l
ta		 Q
1		 Q
2		 Q
3		 Q
4		 To
l
ta		 Q
1
E		 Q
2-
Q
4
E		 To
l
ta
No
rw
ay		 7
%		 1
7
%		 1
3
%
-		 1
6
%		 %
1
8		 %
7
-		 %
8
-		 %
5
-		 -1
%		 %
-1
7		 %
1
6
-		 %
1
0		 %
5
-		 -7
%		 %
-9		 %
1
0		 6
%
C
h
i
le		 1
4
6
%		 %
5
5		 3
0
%
-		 1
3
9
%		 -9
%		 1
9
%
-		 1
0
%		 1
1
%
-		 %
-7		 -4
%		 4
7
%
-		 6
3
%
-		 4
9
%
-		 -4
1
%		 -6
1
%		 8
1
%		 2
2
%
Ca
da
na		 %
1		 %
1
9		 %
1
8
-		 %
1
9
-		 6
5
%		 7
9
%		 2
3
%		 3
8
%		 %
5
0		 1
0
%		 1
%		 1
9
%		 4
%		 %
8		 -2
2
%		 4
%		 %
-3
Sc
t
lan
d
o		 5
1
%		 2
0
%
-		 2
0
%		 1
%		 -3
2
%		 3
2
%
-		 2
1
%		 1
2
1
%		 3
%		 %
7
7		 1
2
%
-		 4
1
%
-		 1
6
%
-		 -1
0
%		 4
3
%		 9
%		 1
9
%
O
t
he
(
1
)
r		 4
%
-		 7
%		 2
9
%
-		 5
4
%		 %
-7
6		 %
3
2
-		 %
3
8
-		 %
6		 -2
9
%		 %
3
9
9		 %
2
8		 %
6
4		 %
2
1		 5
3
%		 %
-3
5		 %
3
5
-		 -3
5
%
To
l
ta		 1
6
%		 1
4
%		 1
2
%
-		 2
2
%		 8
%		 9
%
-		 1
%
-		 %
5		 0
%		 3
%
-		 1
6
%
-		 8
%
-		 1
0
%
-		 9
%
-		 1
3
%
-		 1
2
%		 6
%

Notes:

(1) Ireland and the Faroes

Net capital expenditure guidance

Guidance on financial commitments and cost of debt

Nova Sea

(
G
)
Ha
t v
lum
W
E
rve
s
o
e		 N
I
B
D
E
U
Rm
Ow h
ip
%
ne
rs		 2
0
1
5		 2
0
1
6		 Q
4
2
0
1
5		 Q
4
2
0
1
6		 2
0
1
5		 2
0
1
6		 Q
4
2
0
1
5		 Q
4
2
0
1
6		 Q
4
2
0
1
6
No
Se
va
a		 4
8
%		 3
4
2
2
7		 3
0
6
4
7		 1
1
3
1
5		 6
0
1
8		 1.
5
7		 2.
9
8		 1.
6
4		 2.
6
7		 4
6.
1
-
  • 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
  • 2015 dividends of NOK 200m (paid in Q2-16)
  • Marine Harvest's direct share NOK ~86m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • EUR 22.4m in Q4 2016

Debt distribution and interest rate hedging

(1)
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
CH
)
CU
RR
EN
CY		 DE
BT		 201 6 20 17 20 18 201 9 202 0 202
1		 202 2
(2)
30/
12/
201
6		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat
EU
R m		 .8
674		 .4
797		 0.9
4%		 .0
938		 1.2
1%		 1
1 2
26.		 1.8
0%		 5
1 2
96.		 2.5
0%		 .6
716		 1.2
4%		 .0
380		 2.2
0%		 - 0.0
0%
US
D m		 .0
146		 .0
151		 2.9
1%		 138
.5		 3.1
2%		 138
.5		 3.2
1%		 167
.5		 2.9
3%		 .3
78		 2.3
1%		 .3
78		 2.3
1%		 .0
60		 4.1
3%
GB
P m		 .2
36		 0
34.		 4%
3.0		 .0
34		 3%
3.1		 .0
34		 3%
3.1		 .0
34		 3%
3.1		 .5
23		 3%
2.8		 .5
23		 3%
2.8		 - 0%
0.0
Oth
(
EU
R m
)
er		 138
.4
of
IRS
(
30/
12/
16)
Ma
rke
t va
lue
ntra
cts
in
ME
UR
co
:
(4):
Ma
rk t
ark
et v
alu
atio
ffec
t in
Q4
o m
n e
Diff
in
fixe
d v
s fl
ing
tled
in
h in
Q4
oat
te
set
ere
nce
ra
cas		 -86
.3
14
.0
-2.
0

Notes:

(1) MHG has 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

    • External interest bearing debt is distributed as follows: EUR 70%, USD 13%, GBP 4%, other currencies 13%.
    • Policy: 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

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 hedge between 0% and 30% of its assumed annual expenses in CAD against the USD with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year.
  • USD/CLP
  • Marine Harvest shall not hedge the USD/CLP exposure
  • Internal transaction hedging relating to bilateral sales contracts
  • All bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and EUR
  • 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

EU
R/N		 OK US D/C
AD
ST
GIC
C
NC
DG
ING
RA
TE
UR
RE
Y
HE		 ME
UR		 Ra
te		 SD
MU		 Ra
te
20
17		 19
9.2		 9.4
0		 28
.8		 1.3
2
20
18		 19
9.2		 9.5
4		 26
.4		 1.3
2
P/L
ef
fec
t o
f c
tra
cts
atu
rin
in
Q
4
on
m
g		 -1.
2		 (
)
ME
UR
ME
UR
Ma
rke
alu
e 3
0/0
9/2
01
6
t v		 13
.1
Ch
(
1)
an
ge		 -4.
3
Ma
rke
t v
alu
e 3
0/1
2/2
01
6		 8.8
DE
SIG
NA
TE
D M
AR
KE
T C
UR
RE
NC
IES
No
rwa
y		 EU
R
Ch
ile		 US
D
Ca
nad
a		 US
D
Sc
otl
d
an		 GB
P
Fe
ed		 EU
R
VA
P		 EU
R
Mo
l
rpo		 EU
R
Fa
roe
s		 EU
R
As
ia		 US
D
T
a
x		 l
o
s
s
e
s		 i
d
c
a
r
r
e		 f
d
o
r
w
a
r		 (
Y
E		 )
2
0
1
6
------------- ---------------------------- --------------------------------- --------------------------------- ------------- -----------------------
Ma
in
Ha
t
Gr
3
1.
1
2.
2
0
1
6
r
e
rv
es
ou
p
EU
R m
illio
n		 Re
ise
d
co
g
n		 Un
ise
d
re
co
g
n		 To
ta
l
U
S
A		 8.
2		 2
6.
7		 3
0
5.
Po
lan
d		 8.
0		 7.
2		 1
5.
3
Fr
an
ce		 4.
6		 4
5.
1		 4
9.
7
C
h
i
le		 0.
0		 1
3
0.
3		 1
3
0.
3
I
ta
ly		 0.
0		 0.
4		 0.
4
Ta
iw
an		 1.
1		 0.
0		 1.
1
C
h
ina		 0.
7		 0.
0		 0.
7
No
rw
ay		 1
1.
6		 0.
0		 1
1.
6
O
t
he
r		 0.
2		 0.
0		 0.
2
To
l
ta		 3
4.
5		 2
0
9.
8		 2
4
4.
3
  • -Most of the deferred tax assets have not 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

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