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Mowi ASA

Investor Presentation • Feb 14, 2018

3665_rns_2018-02-14_5bedae91-7a79-426d-b70b-0f7b8262e959.pdf

Investor Presentation

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Marine Harvest

1

Q4 2017 Presentation 14 February 2018

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 plants, 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.

Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today.

Highlights

  • -Operational EBIT of EUR 181 million in the quarter
  • Stable costs in Norway compared to Q3-2017. Initiated restructuring of MH Norway
  • Initiated global cost savings program of EUR 50 million
  • Strong performance and record high earnings in Markets and Consumer Products
  • Conditional agreement to purchase Northern Harvest in East Canada
  • Quarterly dividend of NOK 2.60 per share to be paid in Q1-2018

Key financials

Ma
ine
Ha
t
Gr
in
f
ig
r
rve
s
ou
p -
m
a
ur
es
Un
dite
d E
UR
mi
llio
au
n		 Q
4
2
0
1
7		 Q
4
2
0
1
6		 2
0
1
7		 2
0
1
6
Op
t
ion
l re
d o
t
he
inc
era
a
ve
nu
e a
n
r
om
e		 1,
0
1
0.
0		 1,
0
1
8.
1
-1%		 3,
6
5
3.
9		 3,
5
0
9.
8
Op
t
ion
l
E
B
I
T
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era
a		 1
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0.
8		 2
9.
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5
-30
%		 9
2.
1
7		 0
0.
2
7
E
B
I
T		 -4.
3		 3
4
4.
3		 4
8
4.
9		 9
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1.
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Ca
f
fro
h
low
t
ion
s
m
op
era
s		 8
9.
7		 1
6
3.
2		 6
3
2.
4		 6
9
3.
2
Ne
t
in
ter
t-
be
ing
de
b
t
(
N
I
B
D
)
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ar		 8
3
1.
9		 8
9
0.
0		 8
3
1.
9		 8
9
0.
0
Ba
ic
E
P
S
(
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U
R
)
s		 0.
0
6		 0.
4
7		 0.
9
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1)
S
(
)
Un
de
ly
ing
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r		 0.
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4
3		 1.
2
3		 1.
1
3
1)
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t c
h
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ha
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1)
R
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%		 2
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1)
A
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te
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ty
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0.
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%		 1.
%
5
7		 4
0.
0
%
Ha
t v
lum
(
G
W
T
)
rve
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1
2
6
2
8		 9
9
6
3
4
13%		 3
7
0
3
4
6		 3
8
0
6
2
1
1) -
Op
ion
l
E
B
I
T -
E
U
R
kg
To
l
t
ta
era
a
p
er		 1.
6
1		 2.
6
0		 2.
1
4		 1.
8
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No
rw
ay		 1.
7
7		 2.
0
7		 2.
2
0		 2.
1
8
Sc
t
lan
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o		 1.
1
9		 1.
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5		 0.
9
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Ca
da
na		 0.
9
8		 3.
3
3		 2.
0
6		 2.
5
3
C
h
i
le		 1.
0
3		 2.
6
1		 1.
3
0		 0.
1
1

1) Notes in report

Salmon prices – weekly reference prices

C
h
t
t
o
n
r
a
c
s
a
r
e		 3
9
%		 5
6
%		 0
%		 1
1
%
S
i
h
p
e
r
o
r
s
a
r
e
u		 9
4
%		 9
6
%		 9
0
%		 8
%
7

Operational EBIT comparison

Norway

SA
LM
ON
O
F N
OR
WE
GIA
N O
RIG
IN
EUR
illio
m
n		 Q4
20
17		 Q4
20
16
Op
t
ion
l
E
B
I
T
er
a
a		 3
1
1
7.		 1
7
1.
8
E
B
I
T		 6
6.
7		 1
6
8.
3
Ha
lum
(
G
W
T
)
t v
rve
s
o
e		 6
6
3
8
4		 6
3
9
5
5
Op
t
ion
l
E
B
I
T p
kg
(
E
U
R
)
er
a
a
er		 1.
7
7		 2.
7
0
f w
h
ic
h
Fe
d
- o
e		 0.
0
1
-		 0.
1
7
f w
h
ic
h
Ma
ke
ts
- o
r		 0.
1
8		 0.
1
9
f w
h
ic
h
Co
Pro
du
ts
- o
ns
um
er
c		 0.
2
7		 0.
3
2
Ex
t
ion
l
i
tem
inc
l
in o
E
B
I
T
ce
p
a
s
p.		 2
8.
1
-		 2
6.
2
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
4
2
-		 0.
4
1
-
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 1
1
4
%		 9
1
%
Co
ha
ntr
t s
ac
re		 3
9
%		 5
2
%
Su
ior
ha
p
er
s
re		 9
4
%		 9
4
%
  • Satisfactory earnings supported by higher contract prices
  • Lower spot prices on increased supply
  • Improved biology on 17G vs 16G
  • Restructuring of Marine Harvest Norway – from 4 to 3 regions

Norway: Restructuring – from 4 to 3 regions

  • -Amended salmon farming regulations
  • Streamline organisation following cost increases and volume reduction in recent years
  • New regions: South, Mid and North
  • -Effective 1 January 2018
  • Overhead cost savings of EUR 3 million, plus long term operational improvements
  • Restructuring provision of EUR 2 million recognised in Q4-2017

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.

Scotland

S
AL
M
O
N
O
F
S
C
O
TT
I
S
H
O
RI
G
IN
EUR
illio
m
n		 Q
4
2
0
17		 Q
4
2
0
1
6
Op
t
ion
l
E
B
I
T
er
a
a		 4
1
5.		 2
1.
7
E
B
I
T		 4.
5
-		 0
7
5.
Ha
t v
lum
(
G
W
T
)
rve
s
o
e		 1
2
9
8
7		 1
1
8
0
5
Op
t
ion
l
E
B
I
T
kg
(
E
U
R
)
er
a
a
p
er		 1.
1
9		 1.
8
3
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
2
9		 0.
3
2
f w
Co
h
ic
h
M
H
Pr
du
ts
- o
ns
um
er
o
c		 0.
5
1		 0.
1
8
Ex
ion
l
i
inc
l
in
E
B
I
T
t
tem
ce
p
a
s
op		 5.
4
-		 0.
9
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
4
2
-		 0.
0
8
-
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 1
3
4
%		 9
1
%
Co
ha
tra
t s
n
c
re		 5
6
%		 6
8
%
Su
ior
ha
p
er
s
re		 9
6
%		 9
4
%
  • Good realised price achievement due to contracts
  • Targeted harvest to mitigate biological challenges
  • Increased cost in the quarter due to lower performing sites and mortality

Canada

SA
LM
ON
O
F C
AN
AD
IAN
O
RIG
IN
EUR
illio
m
n		 Q
4 2
01
7		 Q
4 2
01
6
Op
t
ion
l
E
B
I
T
er
a
a		 9
9.		 3
2.
6
E
B
I
T		 9
1
1.		 5
9.
8
Ha
t v
lum
(
G
W
T
)
rve
s
o
e		 1
0
0
3
6		 9
7
6
9
Op
t
ion
l
E
B
I
T
kg
(
E
U
R
)
er
a
a
p
er		 0.
9
8		 3.
3
3
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
1
6		 0.
4
1
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		 1.
1
-		 0.
0
Ex
ion
l
i
kg
(
E
U
R
)
t
tem
ce
p
a
s p
er		 0.
1
1
-		 0.
0
0
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 9
9
%		 1
0
1
%
Co
ha
tra
t s
n
c
re		 0
%		 0
%
Su
ior
ha
p
er
s
re		 9
0
%		 8
%
7
  • Reduced spot prices impacted earnings negatively
  • Lower sea lice levels, however, other biological issues drove costs higher
  • Opened value-added processing plant outside Vancouver
  • Conditional agreement to acquire Northern Harvest on the East Coast

Chile

S
O
O
C
O
G
AL
M
N
F
HIL
EA
N
RI
IN
EUR
illio
m
n		 Q
4 2
0
17		 Q
4 2
0
16
Op
ion
l
E
B
I
T
t
er
a
a		 1
7.
6		 1
9.
8
E
B
I
T		 8
4
5.
-		 2
0.
0
Ha
lum
(
G
W
T
)
t v
rve
s
o
e		 1
0
9
6
7		 7
5
7
7
Op
(
)
t
ion
l
E
B
I
T
kg
E
U
R
er
a
a
p
er		 1.
0
3		 2.
6
1
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
3
9		 0.
2
6
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.
7
-		 0.
1
-
Ex
ion
l
i
kg
(
E
U
R
)
t
tem
ce
p
a
s p
er		 0.
0
4
-		 0.
0
1
-
/re
fer
Pr
ice
h
iev
ice
t
ac
em
en
en
ce
p
r		 9
7
%		 9
9
%
Co
ha
tra
t s
n
c
re		 1
1
%		 1
0
%
Su
ior
ha
p
er
s
re		 8
7
%		 9
4
%
  • Significantly higher volumes post algal bloom in 2016
  • Spot prices reduced on higher supply
  • Satisfactory costs in the quarter
  • Challenging sea lice situation
  • Costs expected to increase in the first quarter

Ireland and Faroes

S
AL
M
O
N
O
F I
RI
S
H
O
RI
G
IN
EUR
illio
m
n		 Q
4 2
0
17		 Q
4 2
0
16
Op
ion
l
E
B
I
T
t
er
a
a		 6.
7		 3.
0
E
B
I
T		 9
7.		 6.
5
Ha
lum
(
G
W
T
)
t v
rve
s
o
e		 2
3
8
5		 2
6
7
7
Op
(
)
t
ion
l
E
B
I
T
kg
E
U
R
er
a
a
p
er		 2.
8
6		 1.
1
3
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
0
1		 0.
0
1
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
2
9		 0.
1
9
Ex
ion
l
i
inc
l
in
E
B
I
T
t
tem
ce
p
a
s
op		 0.
8
-		 0.
7
-
(
)
Ex
t
ion
l
i
tem
kg
E
U
R
ce
p
a
s p
er		 0.
3
5
-		 0.
2
4
-
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 na na
Co
ha
tra
t s
n
c
re		 8
7
%		 8
4
%
Su
ior
ha
p
er
s
re		 8
9
%		 9
2
%
SA
LM
ON
O
F F
AR
OE
SE
O
RIG
IN
EUR
illio
m
n		 Q
4 2
01
7		 Q
4 2
01
6
Op
t
ion
l
E
B
I
T
er
a
a		 1
1.
8		 1
5.
1
E
B
I
T		 9
4.		 3.
1
(
G
)
Ha
t v
lum
W
T
rve
s
o
e		 3
7
6
7		 4
2
1
2
Op
(
)
t
ion
l
E
B
I
T
kg
E
U
R
er
a
a
p
er		 3.
1
3		 3.
5
9
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 1.
3
5		 0.
1
2
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		 2.
0
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
0
0		 0.
4
7
-
Pr
ice
h
iev
/re
fer
ice
t
ac
em
en
en
ce
p
r		 1
5
4
%		 9
9
%
Co
ha
tra
t s
n
c
re		 4
%		 9
%
Su
ior
ha
p
er
s
re		 9
2
%		 9
3
%
  • Continued very good contribution from Marine Harvest Ireland
  • Very good contribution from Marine Harvest Faroes
  • Majority of salmon sold at favourable prices
  • Low volumes in the first quarter

Consumer Products

C
O
S
O
C
S
N
U
M
E
R
P
R
D
U
T
EUR
illio
m
n		 Q
4
2
0
17		 Q
4
2
0
1
6
Op
ing
t
era
re
ve
nu
es		 4
6
8.
5		 4
4
8.
9
Op
t
ion
l
E
B
I
T
er
a
a		 2
5.
9		 2
3.
6
Op
ion
l
E
B
I
T
%
t
era
a		 5.
5
%		 5.
3
%
E
B
I
T		 2
4.
8		 2
3.
6
Vo
lum
l
d
(
ton
d.
ig
h
t
)
e s
o
ne
s p
ro
we		 3
5
7
4
7		 3
7
4
9
4
Ex
t
ion
l
i
tem
ce
p
a
s		 0 0
Vo
lum
ha
lm
e s
re
sa
on		 7
8
%		 7
9
%
Re
ha
lm
ve
nu
e s
re
sa
on		 8
4
%		 8
3
%
  • Record year for Morpol, Pieters, Boulogne, Rosyth and Sterk
  • Continued performance improvements
  • Positive demand response in the French and German fresh market

Feed

F
E
E
D
EUR
illio
m
n		 Q
4
2
0
1
7		 Q
4
2
0
1
6
Op
t
ing
era
re
ve
nu
es		 9
3.
0		 1
0
7.
2
Op
t
ion
l
E
B
I
T
er
a
a		 2.
8
-		 1
0.
8
Op
%
t
ion
l
E
B
I
T
era
a		 %
3.
0
-		 %
1
0.
1
E
B
I
T		 2.
8
-		 3.
8
-
Fe
d s
l
d v
lum
e
o
o
e		 8
2
7
7
2		 8
6
0
1
4
Fe
d p
du
d v
lum
e
ro
ce
o
e		 8
4
5
7
8		 8
9
6
7
2
Ex
ion
l
i
t
tem
ce
p
a
s		 0 0
  • Declining quarterly feed prices
  • Timing of raw material purchases negatively impacted margin
  • EUR 2 million related to Kyleakin expensed in the quarter
  • Construction of the new feed plant in Scotland progressing

Scotland: Construction site of new plant

Initiating global EUR 50 million p.a. cost savings program

  • Significant specific cost cutting initiatives are identified across the Group
  • The major cost saving categories are:
  • EUR 30 million: Other operating expenses
  • EUR 10 million: Cost of goods sold
  • EUR 10 million: Reduction of FTE's
  • All initiatives to be undertaken in 2018

Fourth Quarter 2017 Financials, Markets and Harvest Volumes

Profit and Loss

Ma
rin
e H
est
G
arv
rou
p
EUR
mil
lion		 Q
4 2
017		 Q
4 2
016		 20
17		 20
16
Op
tio
l re
nd
ot
he
r in
era
na
ve
nu
e a
co
me		 1,
010
.0		 1,
018
.1		 3,
653
.9		 3,
509
.8
Op
tio
l E
BIT
1)
era
na		 180
.8		 259
.4		 792
.1		 700
.2
Ch
e i
aliz
ed
inte
l m
in
ang
n u
nre
rna
arg		 12.
9		 5.2
-		 5.7 22
.1
-
Ga
in/l
fro
de
riva
tive
oss
m
s		 12.
1
-		 7.1 20
.2
-		 8.3
Ne
t fa
ir v
alu
dju
of
bio
stm
ent
ntr
act
e a
ma
ss
, o
ner
ous
co
s		 -94
.6		 74
.7		 220
.5
-		 277
.5
Re
stu
ctu
ring
sts
co		 2.5
-		 0.9
-		 2.5
-		 5.4
-
Oth
tio
nal
ite
er
non
-op
era
ms		 0.0 0.0 0.3 1.3
e f
Inc
iate
d c
ies
om
rom
as
soc
om
pan		 12.
8		 21
.0		 33
.7		 62
.6
Imp
air
nt
los
- f
ixe
d a
ts
me
ses
sse		 101
.7
-		 11.
8
-		 103
.8
-		 31
.2
-
EB
IT		 4.3
-		 344
.3		 484
.9		 99
1.2
Ne
t fi
cia
l ite
nan
ms		 7.7 68
.5
-		 37
.7		 232
.0
-
Ea
rni
s b
efo
tax
ng
re		 3.4 275
.8		 522
.6		 759
.2
Pro
fit
los
s fo
r th
eri
od
or
e p		 28
.2		 210
.9		 462
.7		 539
.3
Ba
sic
EP
S (
EU
R)		 0.0
6		 0.4
7		 0.9
7		 1.2
0
Un
de
rly
ing
EP
S (
EU
R)		 0.2
7		 0.4
3		 1.2
3		 1.1
3
h fl
e (
R)
Ne
t c
har
EU
as
ow
pe
r s		 0.0
1		 0.2
5		 0.7
4		 1.2
3
Div
ide
nd
dec
lare
d a
nd
id p
sha
(
NO
K)
pa
er
re		 3.4
0		 2.3
0		 12.
40		 8.6
0
Op
tio
nal
EB
IT m
in
era
arg		 17.
9%		 25
.5%		 21
.7%		 19.
9%
Ha
st
vol
GW
T (
lmo
n)
rve
um
e,
sa		 112
62
8		 99
634		 370
34
6		 380
62
1
Op
in f
Sa
tio
nal
EB
IT p
kg
inc
l m
les
d M
ark
eti
1)
era
er
arg
rom
an
ng		 1.6
1		 2.6
0		 2.1
4		 1.8
4
1)
RO
CE		 8 %
12.		 %
44
.9		 %
26
.7		 %
28
.1
  • Impairment losses of EUR 97 million related to book value of farming licenses in Chile
  • Net financial items impacted by EUR 40 million positive fair value effect of the convertible bond

-

Financial position

Gr
Ma
in
Ha
t
r
e
rv
es
ou
p
E
U
R m
i
l
l
ion		 3
1.
1
2.
2
0
1
7		 3
1.
1
2.
2
0
1
6
No
t a
ts
n-c
urr
en
ss
e
Cu
(
for
)
t a
ts
inc
lu
d
ing
ts
he
l
d
les
rre
n
ss
e
a
ss
e
s
a		 2
1
6
6.
7
2
1
6
3.
5		 2
2
8
5
5.
2
5
5
4.
6
To
ta
l a
ts
ss
e		 4
3
3
0.
3		 4
8
1
0.
4
Eq
i
ty
u		 2
3
1
4
5.		 2
0
6
9.
3
No
t
l
ia
b
i
l
i
t
ies
n-c
urr
en		 1
2
1
5.
2		 1
8
9
8.
0
Cu
t
l
ia
b
i
l
i
t
ies
rre
n		 7
9
9.
7		 8
4
3.
1
To
ta
l e
i
ty
d
l
ia
b
i
l
i
t
ie
q
u
an
s		 4
3
3
0.
3		 4
8
1
0.
4
Ne
t
in
te
t-
be
ing
de
b
t
res
ar		 8
3
1.
9		 8
9
0.
0
A
d
j
te
d e
i
ty
t
io
us
q
u
ra		 5
1.
7
%		 4
0.
0
%

Cash Flow and Net Interest Bearing Debt

Ma
rin
e H
est
G
arv
rou
p
EUR
mil
lion		 Q
4 2
017		 Q
4 2
016		 20
17		 20
16
NIB
D b
inn
ing
of
rio
d
eg
pe		 664
.0
-		 - 8
76
.7		 890
.0
-		 999
.7
-
Op
tio
nal
EB
ITD
A
era		 219
.0		 296
.0		 942
.5		 842
.7
Ch
e i
ork
ing
ital
ang
n w
ca
p		 99
.9
-		 105
.1
-		 114
.6
-		 14.
9
-
Tax
id
es
pa		 29
.5
-		 10.
3
-		 177
.4
-		 92
.6
-
Ot
her
ad
jus
tm
ent
s		 0.0 17.
3
-		 8.0
-		 42
.0
-
Ca
sh
flo
fro
tio
w
m
op
era
ns		 89
.7		 163
.2		 632
.4		 693
.2
Ne
t C
ape
x		 69
.7
-		 58
.2
-		 24
8.7
-		 199
.2
-
Ca
sh
eiv
ed
fro
le o
f s
har
rec
m
sa
es		 0.0 0.0 0.0 52
.3
Ot
her
in
tm
ent
nd
div
ide
nds
ive
d
ves
s a
re
ce		 0.2 1.0 13.
9		 14.
3
Ca
sh
flo
fro
inv
est
nts
w
m
me		 69
.4
-		 57
.2
-		 234
.7
-		 132
.6
-
Ne
t in
d f
ina
nci
al
item
aid
ter
est
an
s p		 8.4
-		 6.4
-		 27
.5
-		 22
.9
-
Ot
her
ite
ms		 14.
0
-		 10.
1		 44
.0
-		 7.2
-
Bo
nds
d t
ity
rte
co
nve
o e
qu		 0.0 0.0 349
.1		 0.0
Div
ide
nd
dis
trib
ute
d		 173
.7
-		 113
.9
-		 640
.3
-		 41
8.1
-
ffec
Tra
nsl
atio
t o
n in
ter
est
-be
ari
de
bt
n e
ng		 8.1 9.0
-		 23
.2		 2.7
-
NIB
D e
nd
of
rio
d
pe		 83
1.9
-		 890
.0
-		 83
1.9
-		 890
.0
-
1):
NIB
D d
istr
ibu
tio
n
EU
R		 %
74		 75% 74% 75%
US
D		 13% 14% 13% 14%
GB
P		 4% 5% 4% 5%
Ot
her
nci
cu
rre
es		 10% 6% 10% 6%

1) Distribution including effect of cross currency sw aps.

2018 Cash Flow Guidance

  • Working capital buildup EUR ~120m
  • Support further organic growth
    • Capital expenditures EUR ~290m
  • Freshwater expansion projects EUR ~35m
    • Sandøra (Region North Norway), Norheim (Region Mid Norway), Inchmore (Scotland)
  • Sea water expansion projects EUR ~30m
    • Scotland, Canada, Chile
  • 2% MAB capacity increase in Norway EUR ~20m
  • New feed plant in Scotland EUR ~60m
  • Consumer Products expansion initiatives EUR ~20m
    • Miami, Ducktrap
  • Interest paid EUR ~35m
  • Taxes paid EUR ~150m
  • Quarterly dividend payment in Q1-2018 of NOK 2.60 per share
  • Important notice: ordinary dividend and not repayment of paid-in capital

Overview financing

  • Refinanced bank facility: EUR 1,206m Facility Agreement
  • Maturity: 5 years
  • Covenant: 35% equity ratio
  • Accordion option: EUR 200m
  • Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank and SEB
    • EUR 340m convertible bond issued in November 2015
  • Tenor 5 years, annual coupon 0.125%(1), conversion price EUR 13.8724
  • NOK 1,250m bond issued in March 2013
  • Tenor 5 years, NIBOR + 3.5%
  • Long term NIBD target increased to EUR 1,200m from EUR 1,050m
  • New feed factory in Scotland
  • Increased farming NIBD/kg ratio from 1.8 to 2.0 on expected higher long-term earnings
E
t
i
t
d
s
m
a
e		 lu
v
o
m
e
s		 C
d
o
m
p
a
r
e		 t
Q
4
2
0
1
6
o		 E
t.
lu
s
v
o
m
e
s
S
l
i
u
p
p
e
r
s		 Q
4
2
0
1
7		 Q
4
2
0
1
6		 V
lu
o
m
e		 % Q
3
2
0
1
7
N
o
rw
a
y		 3
2
1
8
0
0		 2
8
9
0
0
5		 3
2
3
0
0		 1
1.
2
%		 2
8
0
7
0
0
S
t
l
d
c
o
a
n		 4
0
3
0
0		 3
6
6
0
0		 3
7
0
0		 %
1
0.
1		 4
0
0
0
0
F
I
l
d
a
r
o
e
s
a
n
s		 1
8
5
0
0		 2
0
1
0
0		 1
6
0
0
-		 8.
0
%
-		 1
5
8
0
0
I
l
d
r
e
a
n		 3
9
0
0		 4
1
0
0		 2
0
0
-		 %
4.
9
-		 4
1
0
0
T
t
l
Eu
o
a
r
o
p
e		 3
8
4
5
0
0		 3
5
0
3
0
0		 3
4
2
0
0		 %
9.
8		 3
4
0
6
0
0
C
h
i
l
e		 1
5
8
0
0
0		 1
1
5
7
0
0		 4
2
3
0
0		 %
3
6.
6		 1
2
7
2
0
0
N
t
h
A
i
o
r
m
e
r
c
a		 3
9
8
0
0		 3
8
3
0
0		 1
5
0
0		 3.
9
%		 3
9
2
0
0
T
l
A
i
t
o
a
m
e
r
c
a
s		 1
9
7
8
0
0		 1
5
4
0
0
0		 4
3
8
0
0		 2
8.
4
%		 1
6
6
4
0
0
A
t
l
i
s
r
a
a
u		 1
6
4
0
0		 1
1
4
0
0		 5
0
0
0		 4
3.
9
%		 1
4
0
0
0
O
h
t
e
r		 4
0
0
7		 4
1
0
0		 6
0
0		 1
4.
6
%		 4
0
0
5
T
l
t
o
a		 6
0
3
4
0
0		 1
9
8
0
0
5		 8
3
6
0
0		 1
6.
1
%		 2
0
0
5
5
5

Supply development

Source: Kontali

  • Supply growth in all main markets (Norway, Chile, Scotland and Canada) – slightly more than guided
  • Europe: Harvesting growth in line with guidance
  • Chile: Recovery from algal bloom. Harvested more than expected (higher growth, higher biomass than forecast and increasing harvest weights)
Q
4
2
0
1
7
Ma
ke
t
r		 C
ha
ng
e v
s
Q
4
2
0
1
6		 Q
4
2
0
1
7
N
O
K		 C
ha
ng
e v
s
Q
4
2
0
1
6
No
(
1
)
rw
ay		 E
U
R
1
3
5.		 3
0.
%
5
-		 N
O
K
4
9.
2
6		 2
6.
2
%
-
C
(
)
h
i
le
2
C
G
(
3
)
h
i
le,
W
E		 S
U
D
4.
7
3
S
2
U
D
5.
4		 %
1
4.
8
-
1
6.
6
%
-		 O
N
K
3
8.
6
2
O
2
6
N
K
4
4.		 %
1
7.
1
-
1
8.
9
%
-
No
t
h
Am
ica
(
4
)
r
er
G
(
)
No
t
h
Am
ica
W
E
3
r
er
,		 U
S
D
3.
2
4
S
U
D
6.
7
3		 1
4.
3
%
-
%
1
4.
4
-		 N
O
K
2
6.
4
4
O
N
K
5
4.
9
5		 1
6.
6
%
-
%
1
6.
7
-

Development in reference prices

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
Est
im
ate
d v
olu
me
s		 Co
d t
mp
are		 o Q 4 2
016		 Est
olu
. v
me
s		 12
mo		 nth
ari
co
mp		 so
n
Ma
rke
ts		 Q
4 2
017		 Q
4 2
016		 Vo
lum
e		 % Q
3 2
017		 LT
M		 PT
M		 %
EU 26
8 2
00		 25
0 8
00		 17
40
0		 6.9
%		 242
60
0		 918
20
0		 940
50
0		 2.4
%
-
Ru
ia
ss		 23
000		 20
100		 2 9
00		 4%
14.		 17
60
0		 67
60
0		 68
900		 %
1.9
-
Ot
her
Eu
rop
e		 24
20
0		 20
900		 3 3
00		 15.
8%		 19
40
0		 79
20
0		 73
500		 7.8
%
To
tal
Eu
rop
e		 315
40
0		 29
1 8
00		 23
600		 8.1
%		 27
9 6
00		 1 0
65
000		 1 0
82
90
0		 1.7
%
-
US
A		 103
10
0		 87
900		 15
20
0		 17.
3%		 95
300		 396
20
0		 379
90
0		 4.3
%
Bra
zil		 21
800		 19
600		 2 2
00		 11.
2%		 19
60
0		 79
900		 83
800		 %
4.7
-
Ot
her
Am
eric
as		 31
600		 29
500		 2 1
00		 7.1
%		 26
800		 109
10
0		 104
70
0		 4.2
%
To
tal
Am
eri
ca
s		 156
50
0		 137
00
0		 19
500		 14.
2%		 141
70
0		 585
20
0		 568
40
0		 3.0
%
Ch
ina
/ H
Ko
ong
ng		 26
20
0		 19
20
0		 7 0
00		 36
.5%		 22
900		 84
800		 79
000		 7.3
%
Jap
an		 16
000		 16
700		 700
-		 4.2
%
-		 13
20
0		 57
60
0		 58
60
0		 1.7
%
-
So
uth
Ko
/ T
aiw
rea
an		 12
000		 9 4
00		 2 6
00		 27
.7%		 11
40
0		 45
40
0		 40
000		 13.
5
%
Ot
her
As
ia		 20
40
0		 15
800		 4 6
00		 29
.1%		 20
500		 82
300		 65
300		 26
.0%
To
tal
As
ia		 74
600		 61
100		 13
500		 22
.1%		 68
000		 27
0 1
00		 242
90
0		 11.
2%
All
her
ark
ot
ets
m		 32
000		 27
20
0		 4 8
00		 17.
6%		 27
60
0		 110
50
0		 102
00
0		 8.3
%
To
tal		 578
50
0		 517
10
0		 61
40
0		 11.
9%		 516
90
0		 2 0
30
800		 1 9
96
20
0		 1.7
%
Infl
to
US
fro
Eu
ow
m
rop
e
Infl
fro
Ch		 25
20
0
12		 20
000		 5 2
00		 26
.0%		 20
40
0		 95
100		 78
800		 20
.7%
21
to
EU
ile
ow
m		 20
0		 7 7
00		 4 5
00		 .4%
58		 9 6
00		 38
300		 48
500		 .0%
-

Global volume by market

Overall consumption approx 25,000 tonnes less than harvested (inventory build-up)

Europe: Growth across several markets, including Russia

US: Impressive growth as access to more Chilean salmon and import growth of large sized European salmon continues

Asia: Impressive growth. Exports of salmon from Norway to China gained pace

Source: KontaliNote: Atlantic Salmon (GWT), LTM Last twelve months, PTM Previous twelve months 27

Industry supply growth 2018E

201
5		 201
6		 201
7		 201
8E
GW
T (
1,
000
)		 Es
tim
ate		 Lo
w		 Y
/Y g
th
row		 Hig
h		 Y
/Y g
th
row
No
rwa
y		 1 1
11		 1 0
54		 1 0
87		 1 1
73		 1 1
50		 6
%		 1 1
95		 10
%
UK 150 142 157 143 138 %
-12		 148 %
-6
Far
Isla
nds
oe		 68 70 70 73 70 %
-1		 75 %
7
To
tal
Eu
rop
e		 1 3
28		 1 2
65		 1 3
14		 1 3
88		 1 3
58		 3
%		 1 4
18		 8
%
Ch
ile		 538 454 52
1		 555 540 4
%		 570 9
%
No
rth
Am
eric
a		 140 152 146 152 148 2
%		 156 7
%
To
tal
Am
eric
as		 678 606 667 707 688 3
%		 726 9
%
Oth
er		 79 79 92 98 95 3
%		 100 8
%
To
tal		 2 0
85		 1 9
49		 2 0
74		 2 1
93		 2 1
41		 %
3		 2 2
44		 %
8
Q1
20
15		 Q1
20
16		 Q1
20
17		 Q1
20
18E		 Q1
20
18E
GW
T (
1,
000
)		 Low Q/Q
th
gr
ow		 Hig
h		 Q/Q
th
gr
ow
No
rwa
y		 260 244 249 277 27
1		 9
%		 282 13
%
UK 28 34 36 34 32 -11
%		 35 -2
%
Far
Isla
nds
oe		 12 17 14 17 16 13
%		 18 27
%
To
tal
Eu
rop
e		 300 294 299 327 319 7
%		 335 12
%
Ch
ile		 134 144 118 136 132 12
%		 139 18
%
No
rth
Am
eric
a		 29 34 30 35 34 13
%		 36 19
%
To
tal
Am
eric
as		 163 178 148 171 166 %
12		 175 %
18
Oth
er		 17 19 21 23 22 6
%		 24 16
%
To
tal		 480 491 468 521 507 8
%		 534 14
%
Q2
-Q4		 Q2
-Q4		 Q2
-Q4		 Q2
-Q4		 Q2
-Q4
20
18E
GW
T (
1,
000
)		 201
5		 201
6		 201
7		 201
8E		 Lo
w		 Q/Q
th
gr
ow		 Hig
h		 Q/Q
th
gr
ow
No
rwa
y		 85
1		 810 838 896 879 %
5		 913 %
9
UK 12
1		 108 12
1		 110 106 -12
%		 113 %
-7
Far
Isla
nds
oe		 56 53 56 56 54 %
-4		 57 1
%
To
tal
Eu
rop
e		 1 0
28		 971 1 0
15		 1 0
61		 1 0
39		 2
%		 1 0
83		 7
%
Ch
ile		 405 310 403 420 408 1
%		 43
1		 7
%
No
rth
Am
eric
a		 110 118 115 117 114 -1
%		 120 4
%
To
tal
Am
eric
as		 515 428 518 537 522 1
%		 551 6
%
Oth
er		 62 60 72 75 73 2
%		 76 6
%
To
tal		 1 6
05		 1 4
58		 1 6
05		 1 6
72		 1 6
34		 2
%		 1 7
10		 7
%
  • 2018 guidance: Global growth of 3-8% (Europe 6%, Americas 6%)
  • 2019: Kontali expects 5% global growth

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. 28

Sa
lm
ies
on
s
p
ec
G
W
T
(
)
1,
0
0
0		 2
0
1
6
Ac
l
tua		 Q
1
2
0
1
7
Ac
l
tua		 Q
2
2
0
1
7
Ac
l
tua		 Q
3
2
0
1
7
Ac
l
tua		 Q
4
2
0
1
7
Ac
l
tua		 2
0
1
7
Ac
l
tua		 Q
1
2
0
1
8
Gu
i
da
nc
e		 2
0
1
8
Gu
i
da
nc
e
No
rw
ay		 2
3
6		 4
9		 3
9		 5
5		 6
6		 2
1
0		 2
5		 2
4
9
Sc
t
lan
d
o		 4
5		 1
8		 1
9		 1
1		 1
3		 6
0		 9 4
7
Ca
da
na		 4
3		 9 9 1
1		 1
0		 3
9		 7 4
6
C
h
i
le		 3
7		 6 8 1
4		 1
7		 4
5		 1
2		 5
3
O
he
Un
i
t
ts
r		 1
9		 2 4 4 6 1
6		 3 1
6
To
ta
l		 3
8
1		 8
4		 7
9		 9
5		 1
1
3		 3
7
0		 8
3		 4
1
0

MHG volume guidance

2018 volume guidance of 410,000 tonnes GWT (unchanged)

  • Partial recovery of volumes in Norway
  • Scotland to decline temporarily due to change in stocking pattern

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. 29

Outlook

  • -Strong financial position
  • Several important organic growth initiatives ongoing (Feed, Farming, Consumer Products)
  • Global cost savings program of EUR 50 million
  • Conditional agreement to acquire Northern Harvest on the East Coast of Canada
  • Strong underlying demand
  • Positive market response in the European fresh segment due to lower prices
  • Quarterly dividend payment in Q1-2018 of NOK 2.60 per share
  • Important notice: ordinary dividend and not 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 increased to EUR 1,200 million from EUR 1,050 million
  • New feed factory in Scotland
  • Increased farming NIBD/kg ratio from 1.8 to 2.0 on expected higher long-term earnings

Contract coverage and sales contract policy

S
S
C
O
C
O
C
A
L
E
N
T
R
A
T
P
L
I
Y
M
in
he
dg
in
te
g
ra		 (
1)
M
he
dg
in
te
ax
g
ra
(
2)
No
rw
ay		 0.
0
%		 0.
0
%
5
Sc
lan
d
t
o		 0.
0
%		 0
%
7
5.
Ca
da
na		 0.
0
%		 3
0.
0
%
(
2)
C
h
i
le		 %
0.
0		 %
5
0.
0
Ire
lan
d		 %
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) Contract rate can be increased to 65% under special circumstances

Q1 2018 contract shares (% of guided volume):

  • Norway 39%
  • Scotland 73%
  • Canada 0%
  • Chile 32%
  • Contracts typically have a duration of 3-12 months
  • Contracts are entered into on a regular basis

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)
Oth
er		 Gro
up
OP
ER
AT
ION
AL
EB
IT
ING
FA
RM		 88.
7		 4.9 8.3 10.
9		 6.0 6.0 124
.8
SA
S A
ING
LE
ND
MA
RK
ET
Ma
rke
ts		 11.
7		 3.8 1.6 6.7 0.0 5.8 0.1 29.
6
Co
r P
rod
uct
nsu
me
s		 17.
6		 6.7 0.0 0.0 0.7 0.0 0.9 25.
9
SU
BT
OT
AL		 118
.0		 15.
4		 9.9 17.
6		 6.7 11.
8		 0.9 180
.3
Fee
d		 0.7
-		 -2.
1		 2.8
-
1)
Oth
ntit
ies
er e		 3.3 3.3
TO
TA
L		 117
.3		 15.
4		 9.9 17.
6		 6.7 11.
8		 2.1 180
.8
(
GW
T)
Ha
st v
olu
rve
me		 66
384		 12
987		 10
036		 17
096		 2 3
58		 3 7
67		 112
62
8
1) -
Op
tion
al E
BIT
r kg
(
EU
R)
tot
al G
era
pe
rou
p		 1.7
7		 1.1
9		 0.9
8		 1.0
3		 2.8
6		 3.1
3		 1.6
1
- of
wh
ich
Fe
ed		 0.0
1
-		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
2
-
- of
wh
ich
M
ark
ets		 0.1
8		 0.2
9		 0.1
6		 0.3
9		 0.0
1		 1.5
3		 0.2
6
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.2
7		 0.5
1		 0.0
0		 0.0
0		 0.2
9		 0.0
0		 0.2
3
AN
AL
YT
ICA
L D
AT
A
1)
Pri
ach
ieve
nt/r
efe
ice
(
%)
ce
me
ren
ce
pr		 114
%		 134
%		 99% 97% na 154
%		 113
%
Co
har
e (
%)
ntra
ct s		 39% 56% 0% 11% 87% 4% 33%
Qu
alit
erio
r sh
(
%)
y -
sup
are		 94% 96% 90% 87% 89% 92% 93%
Op
Ex
tion
al i
tem
s in
clu
ded
in
tion
al E
BIT
cep
era		 -28
.1		 5.4
-		 1.1
-		 0.7
-		 0.8
-		 0.0 0 -36
.2
(
R)
Ex
tion
al i
tem
kg
EU
cep
s p
er		 0.4
2
-		 0.4
2
-		 0.1
1
-		 0.0
4
-		 0.3
5
-		 0.0
0		 0.3
2
-
GU
IDA
NC
E
Q1
20
18
har
t vo
lum
e (
GW
T)
ves		 52
000		 9 0
00		 7 0
00		 12
000		 1 5
00		 1 0
00		 82
500
201
8 h
est
lum
e (
GW
T)
arv
vo		 249
00
0		 47
000		 46
000		 52
500		 7 5
00		 8 0
00		 410
00
0
Q1
20
18
tra
ct s
har
e (
%)
con		 39% 73% 0% 32% 87% 0% 39%

YTD segment overview

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)
Oth
er		 Gro
up
OP
ER
AT
ION
AL
EB
IT
FA
RM
ING		 374
.4		 125
.1		 0
75.		 45.
5		 28.
3		 12.
2		 660
.5
SA
S A
ING
LE
ND
MA
RK
ET
Ma
rke
ts		 31.
3		 15.
7		 6.3 13.
1		 0.0 6.7 0.1 73.
2
Co
r P
rod
uct
nsu
me
s		 44.
9		 12.
9		 0.0 0.0 1.6 0.1 2.3 61.
7
SU
BT
OT
AL		 450
.7		 153
.7		 81.
3		 58.
6		 29.
9		 18.
9		 2.3 795
.4
Fee
d		 12.
3		 -3.8 8.5
1)
Oth
ntit
ies
er e		 -11
.8		 11.
8
-
TO
TA
L		 463
.0		 153
.7		 81.
3		 58.
6		 29.
9		 18.
9		 13.
2
-		 792
.1
Ha
st v
olu
(
GW
T)
rve
me		 210
15
2		 60
186		 39
389		 44
894		 9 7
45		 5 9
80		 370
34
6
1) -
Op
tion
al E
BIT
r kg
(
EU
R)
tota
l G
era
pe
rou
p		 2.2
0		 2.5
5		 2.0
6		 1.3
0		 3.0
7		 3.1
7		 2.1
4
- of
wh
ich
Fe
ed		 0.0
6		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
2
- of
wh
ich
M
ark
ets		 0.1
5		 0.2
6		 0.1
6		 0.2
9		 0.0
0		 1.1
2		 0.2
0
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.2
1		 0.2
1		 0.0
0		 0.0
0		 0.1
6		 0.0
1		 0.1
7
AN
AL
YT
ICA
L D
AT
A
1)
Pri
ach
ieve
nt/r
efe
ice
(
%)
ce
me
ren
ce
pr		 102
%		 111
%		 100
%		 99% na 131
%		 103
%
Co
ntra
ct s
har
e (
%)		 47% 46% 0% 17% 82% 4% 38%
Qu
alit
erio
r sh
(
%)
y -
sup
are		 93% 96% 90% 88% 89% 91% 93%
Ex
tion
al i
tem
s in
clu
ded
in
Op
tion
al E
BIT
cep
era		 -92
.2		 9.8
-		 1.9
-		 2.5
-		 4.7
-		 0.0 0 -11
1.1
Ex
tion
al i
tem
kg
(
EU
R)
cep
s p
er		 0.4
4
-		 0.1
6
-		 0.0
5
-		 0.0
6
-		 0.4
8
-		 0.0
0		 0.3
0
-
GU
IDA
NC
E
Q1
20
18
har
t vo
lum
e (
GW
T)
ves		 52
000		 9 0
00		 7 0
00		 12
000		 1 5
00		 1 0
00		 82
500
201
8 h
est
lum
e (
GW
T)
arv
vo		 249
00
0		 47
000		 46
000		 52
500		 7 5
00		 8 0
00		 410
00
0
Q1
20
18
tra
ct s
har
e (
%)
con		 39% 73% 0% 32% 87% 0% 39%

Quarterly segment overview

MH Operating Units FARMING MH Sales and Marketing
Consumer
EUR million Norway Scotland Canada Chile Ireland Faroes Markets Products MH Feed Other Elim Group*
Revenues and other income 368.9 78.3 57.3 82.1 21.8 20.0 724.0 468.5 93.0 8.8 $-912.8$ 1010.0
Operating EBITDA 103.7 9.1 11.9 14.8 7.0 6.7 30.8 31.5 $-0.5$ 4.1 0.0 219.0
Operating EBIT 88.7 4.9 8.3 10.9 6.0 6.0 29.6 25.9 $-2.8$ 3.3 0.0 180.8
Fair Value adj on biomass, contracts/ unrealised derivatives $-50.8$ $-19.9$ 2.1 $-2.8$ 44
1.1		 $-6.9$ $-3.4$ $-17.6$ 0.0 $-8.5$ 0.0 $-106.7$
Unrealized margin adjustment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12.9 12.9
Restructuring cost $-1.9$ 0.0 0.0 0.5 0.0 0.0 0.0 $-1.1$ 0.0 0.0 0.0 $-2.5$
Other non-operational items 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Income/loss from associated companies 13.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-0.2$ 0.0 12.8
Write-down of fixed assets/intangibles $-1.0$ 0.0 0.0 $-100.7$ 0.0 0.0 $-0.1$ 0.2 0.0 0.0 0.0 $-101.7$
EBIT 47.9 $-15.0$ 10.3 $-92.1$ 7.2 $-0.9$ 26.2 7.3 $-2.8$ $-5.4$ 12.9 $-4.3$
Contribution to operational EBIT from S&M 29.3 10.5 1.6 6.7 0.7 5.8 $-29.6$ $-25.9$ 0.9 0.0
Contribution to operational EBIT from Feed $-0.7$ 2.8 $-2.1$ 0.0
Operational EBIT incl contribution from S&M 117.3 15.4 9.9 17.6 6.7 11.8 0.0 0.0 0.0 2.1 0.0 180.8
Harvest / sales volume 66 384 12 987 10 036 17 096 2 3 5 8 3767 35 747 82772
Operational EBIT/kg incl contribution from S&M (EUR) 1.77 1.19 0.98 1.03 2.86 3.13 1.61
-of which S&M 0.44 0.81 0.16 0.39 0.29 1.53 0.49
-of which Feed $-0.01$ $-0.02$

Development in harvest volumes

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

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

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

Notes:

(1) Ireland and the Faroes

Net working capital guidance

Guidance on financial commitments and cost of debt

Nova Sea

Ha t v
rv
es
o		 lu
(
G
W
T
m
e		 ) (
)
kg
I
1
E
B
T
p
er		 N
I
B
D
E
U
Rm
h
ip
%
Ow
ne
rs		 2
0
1
6
2
0
1
7
Q
4
2
0
1
6
Q
4
2
0
1
7		 0
1
6		 Q
4
2
0
1
7		 Q
4
2
0
1
7
No
S
va
e
a		 4
8
%		 3
0
6
4
7		 4
0,
0
0
7		 6
0
1
8		 1
2
9
7
7		 2. 9
8		 2.
1
5		 2.
6
7		 2.
6
2		 1
7.
5
‐
  • 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
  • 2016 dividends of NOK 650m (paid in Q2-17 & Q3-17)
  • Marine Harvest's direct share NOK ~277m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • EUR 11.5m in Q4 2017

Debt distribution and interest rate hedging

(1)
DE
BT
VO
LU
ME
HE
DG
ED
AN
D F
IXE
D R
AT
ES
O
F I
NT
ER
ES
T R
AT
E H
ED
GE
S (
MA
RC
H-M
AR
CH
)
CU
RR
EN
CY		 DE
BT		 20 17 20 18 20
19		 202 0 202 1 202
2
(2)
31/
12/
20
17		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra
EU
R m		 622
.3		 .0
586		 1.3
5 %		 860
.3		 2.1
6 %		 1 2
96
.5		 2.5
0 %		 .6
716		 1.2
4 %		 .0
380		 2.2
0 %		 - 0.0
0 %
US
D m		 141
.0		 .5
138		 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		 32
.1		 .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		 127
.6
Ma
rke
t va
lue
of
IR
S c
ont
ts
in M
EU
R (
31/
12/
17)
72
.5
rac
:
-
(4):
Ma
rk t
ark
alu
atio
ffe
ct i
n Q
4
4.2
et v
o m
n e
Diff
fixe
s fl
Q4
in
d v
oat
ing
te
set
tled
in
h in
2.9
ere
nce
ra
cas
-

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

  • External interest bearing debt is distributed as follows: EUR 74%, USD 13%, GBP 4%, other currencies 10%
  • Policy: Marine Harvest ASA shall over time hedge 0%-35% of the Group's long-term interestbearing debt by currency with fixed interest or interest rate derivatives for the first 5 years, and 0% fixed rates thereafter. 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, GBP and NOK 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
RA
TE
GI
C C
UR
RE
NC
Y
HE
DG
ING		 ME
UR		 Ra
te		 MU
SD		 Ra
te
20
18		 199
.2		 9.5
4		 28
.8		 1.3
2
20
19		 199
.2		 9.5
7		 21
.6		 1.3
1
20
20		 16
.6		 10
.22		 0.0 0.0
0
P/L
ef
fec
t o
f c
tra
cts
aliz
ed
in
Q
4
on
re		 0.5
-		 (
ME
UR
)
ME
UR
Ma
rke
alu
e 3
0/0
9/2
01
7
t v		 2.1
Ch
e (
1)
ang		 16
.5
-
Ma
rke
alu
e 3
1/1
2/2
01
7
t v		 14
.4
-
DE
SIG
NA
TE
D M
AR
KE
T C
UR
RE
NC
IES
No
rw
ay		 EU
R
Ch
ile		 US
D
Ca
nad
a
Sc
otla
nd		 US
D
GB
P
Fe
ed		 EU
R
VA
P		 EU
R
Mo
l
rpo		 EU
R
Fa
roe
s		 EU
R
As
ia		 US
D

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