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Mowi ASA

Quarterly Report • Oct 31, 2018

3665_rns_2018-10-31_d00807b1-026b-4ae5-9730-02c4b07f12e5.pdf

Quarterly Report

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Marine Harvest

Q3 2018 Presentation 31 October 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

  • -Record high Q3 operational EBIT of EUR 207 million in the quarter
  • High prices in all markets driven by strong demand
  • Seasonally all-time high harvest volumes
  • Acquisition of Northern Harvest completed
  • Strong underlying earnings in Consumer Products
  • Quarterly dividend of NOK 2.60 per share to be paid in Q4-2018

Key financials

Ma
ine
Ha
t
Gr
in
f
ig
r
rve
s
ou
p -
m
a
ure
s
Una
udi
ted
EU
R m
illio
n		 Q
3
2
0
1
8		 Q
3
2
0
1
7		 Y
T
D
Q
3
2
0
1
8		 Y
T
D
Q
3
2
0
1
7		 2
0
1
7
Op
t
ion
l re
d o
t
he
inc
era
a
ven
ue
an
r
om
e		 9
9
0.
2		 14% 8
6
8
7.		 2,
4
0.
8
7		 2,
6
4
3.
8		 3,
6
3.
8
5
Op
ion
l
E
B
I
T
t
1)
era
a		 2
0
7.
1		 7% 1
9
4.
2		 5
3
9.
9		 6
1
1.
3		 7
9
2.
1
E
B
I
T		 1
7
0.
3		 2
2
5.
4		 6
9
4.
9		 4
8
9.
2		 4
8
4.
9
Ca
h
f
low
fro
ion
t
s
m
op
era
s		 2
0
9.
1		 1
3
2.
6		 5
1
3.
4		 5
4
2.
8		 6
3
2.
4
(
)
Ne
t
in
ter
t-
be
ing
de
b
t
N
I
B
D
es
ar		 1,
2
1
8.
2		 6
6
4.
0		 1,
2
1
8.
2		 6
6
4.
0		 8
3
1.
9
Ba
ic
E
P
S
(
E
U
R
)
s		 0.
1
1		 0.
3
1		 0.
8
3		 0.
9
2		 0.
9
7
1)
Un
de
ly
ing
E
P
S
(
E
U
R
)
r		 0.
3
1		 0.
2
9		 0.
8
0		 0.
9
6		 1.
2
3
1)
f
(
)
Ne
t c
h
low
ha
E
U
R
as
p
er
s
re		 0.
1
7		 0.
1
2		 0.
5
0		 0.
7
4		 0.
7
4
1)
R
O
C
E		 2
6.
9
%		 2
8.
8
%		 2
3
%
5.		 3
1.
%
5		 2
6.
%
7
1)
A
d
j
d e
i
io
te
ty
t
us
q
u
ra		 4
4.
3
%		 5
4.
3
%		 4
4.
3
%		 5
4.
3
%		 5
1.
7
%
Ha
t v
lum
(
G
W
T
)
rve
s
o
e		 1
0
9
8
9
6		 15% 9
3
3
8
5		 2
6
9
4
4
5		 2
1
8
5
7
7		 3
0
3
4
6
7
1) -
Op
ion
l
E
B
I
T -
E
U
R p
kg
To
l
t
ta
era
a
er		 1.
8
8		 2.
0
4		 2.
0
0		 2.
3
7		 2.
1
4
No
rwa
y		 2.
2
5		 2.
2
4		 2.
3
4		 2.
4
0		 2.
2
0
Sc
t
lan
d
o		 1.
3
6		 2.
3
3		 1.
8
6		 2.
9
3		 2.
5
5
Ca
da
na		 1.
0
5		 1.
7
3		 1.
0
4		 2.
4
3		 2.
0
6
C
h
i
le		 1.
2
8		 1.
3
0		 1.
4
7		 1.
4
7		 1.
3
0
Ire
lan
d		 3.
4
6		 3.
2
3		 3.
4
1		 3.
1
3		 3.
0
7
Fa
roe
s		 2.
8
0		 2.
2
5		 2.
3
3		 3.
2
3		 3.
1
7

Salmon prices – weekly reference prices

C
h
t
t
o
n
r
a
c
s
a
r
e		 2
9
%		 6
4
%		 0
%		 2
4
%
S
i
h
u
p
e
r
o
r
s
a
r
e		 %
9
2		 %
9
7		 %
9
3		 %
8
8

1) From the first quarter 2018, we have changed our reporting of price achievement to no longer include margins from Consumer Products and Feed. Comparison figures are re-presented accordingly 6

Operational EBIT comparison

Norway

S
A
L
M
O
N
O
F
N
O
R
W
E
G
I
A
N
O
R
I
G
I
N
EU
R m
illio
n		 Q
3
2
0
1
8		 Q
3
2
0
1
7
Op
t
io
l
E
B
I
T
er
a
na		 1
6
0.
2		 1
2
4.
2
E
B
I
T		 1
4
4.
7		 1
9
7.
7
Ha
t v
lum
(
G
W
T
)
rve
s
o
e		 7
1
2
8
3		 5
5
3
6
9
Op
(
)
t
io
l
E
B
I
T
kg
E
U
R
er
a
na
p
er		 2.
2
5		 2.
2
4
f w
h
ic
h
Fe
d
- o
e		 0.
1
3		 0.
2
0
f w
h
ic
h
Ma
ke
ts
- o
r		 0.
1
3		 0.
0
9
f w
h
ic
h
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
1		 0.
1
7
/re
fer
Pr
ice
h
iev
t
ice
a
c
em
en
en
ce
p
r		 1
0
2
%		 1
0
2
%
Co
tra
t s
ha
n
c
re		 2
9
%		 3
8
%
Su
ior
ha
p
er
s
re		 9
2
%		 9
4
%
  • Record high Q3 results on increased volume and decreased costs
  • Good spot prices and low contract share
  • Improved biology in Region North. Biological challenges in Region Mid and Region South
  • Costs expected to increase in the fourth quarter on lower volumes (compared to Q3)

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 all business areas

Scotland

S
A
L
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
i
l
E
B
I
T
t
p
e
r
a
o
n
a		 1
2.
3		 2
4
5.
E
B
I
T		 2
6.
1		 2
2.
6
(
G
)
H
t
lu
W
T
a
rv
e
s
v
o
m
e		 9
0
2
4		 1
0
9
1
2
O
i
l
E
B
I
T
k
(
E
U
R
)
t
p
e
r
a
o
n
a
p
e
r
g		 1.
3
6		 2.
3
3
f w
h
i
h
M
H
M
k
t
o
c
a
r
e
s
-		 0.
4
8		 0.
2
8
f w
h
i
h
M
H
C
P
d
t
o
c
o
n
s
u
m
e
r
r
o
u
c
s
-		 0.
2
4		 0.
1
9
Pr
ic
h
ie
t
/
fe
ic
e
a
c
ve
m
e
n
re
re
nc
e
p
r
e		 1
1
4
%		 1
1
3
%
C
t
t
ha
o
n
ra
c
s
re		 6
4
%		 5
3
%
Su
io
ha
p
e
r
r s
re		 9
%
7		 9
6
%
  • Good price achievement
  • Increased biological costs in the quarter
  • Positive scale effects expected in 2019 due to increased stockings and new sites

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
illi
on		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
io
l
E
B
I
T
t
p
e
ra
na		 1
3.
0		 1
9.
3
E
B
I
T		 7.
0		 1
1.
0
Ha
t v
lu
(
G
W
T
)
rv
e
s
o
m
e		 1
2
4
0
5		 1
1
1
5
1
O
io
l
E
B
I
T
kg
(
E
U
R
)
t
p
e
ra
na
p
e
r		 1.
0
5		 1.
7
3
f w
h
ic
h
M
H
Ma
ke
t
- o
r
s		 0.
1
2		 0.
1
4
f w
C
h
ic
h
M
H
Pr
du
t
- o
o
ns
u
m
e
r
o
c
s		 0.
0
0		 0.
0
0
Pr
ic
h
ie
/
fe
ic
t
e
a
c
ve
m
e
n
re
re
nc
e
p
r
e		 1
0
0
%		 9
9
%
C
ha
tra
t s
o
n
c
re		 0
%		 0
%
Su
io
ha
p
e
r
r s
re		 9
3
%		 9
2
%
  • Good prices and contribution from Northern Harvest
  • Challenging quarter biologically (mortality, gill issues)
  • Integration of Northern Harvest progressing well

Chile

S
A
L
M
O
N
O
F
C
H
I
L
E
A
N
O
R
I
G
I
N
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 1
7.
6		 1
7.
8
E
B
I
T		 8.
8		 0.
8
-
H
lu
(
G
W
T
)
t
a
rv
e
s
v
o
m
e		 1
3
7
2
4		 1
3
7
2
1
O
t
i
l
E
B
I
T
k
(
E
U
R
)
p
e
r
a
o
n
a
p
e
r
g		 1.
2
8		 1.
3
0
f w
h
i
h
M
H
M
k
t
o
c
a
r
e
s
-		 0.
1
4		 0.
1
1
f w
h
i
h
M
H
C
P
d
t
o
c
o
n
s
u
m
e
r
r
o
u
c
s
-		 0.
2
8		 0.
1
9
/
fe
Pr
ic
h
ie
t
ic
e
a
c
ve
m
e
n
re
re
nc
e
p
r
e		 1
0
0
%		 1
0
6
%
C
t
t
ha
o
n
ra
c
s
re		 %
2
4		 %
1
6
Su
io
ha
p
e
r
r s
re		 8
8
%		 8
9
%
  • Stable results on slightly increased prices
  • Relatively stable costs year-over-year
  • Good biological performance
  • Reduced medicine use and less sea lice
  • Harvest volumes expected to increase in 2019, partially recovering pre-algal bloom volumes

Ireland and Faroes

S
O
O
S
O
G
A
L
M
N
F
I
R
I
H
R
I
I
N
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 6.
7		 1
0.
1
E
B
I
T		 1.
4		 1.
6
H
l
(
G
W
T
)
t
a
r
v
e
s
v
o
u
m
e		 1
9
2
7		 3
1
2
0
O
t
i
l
E
B
I
T
k
(
E
U
R
)
p
e
r
a
o
n
a
p
e
r
g		 3.
4
6		 3.
2
3
f
h
i
h
M
H
M
k
t
o
c
a
r
e
s
w
-		 0.
0
0		 0.
0
0
f
C
h
i
h
M
H
P
d
t
o
c
o
n
s
m
e
r
r
o
c
s
w
u
u
-		 0.
0
7		 0.
1
1
P
i
h
i
t
/
f
i
r
c
e
a
c
e
v
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e		 n
a		 n
a
C
t
t
h
o
n
r
a
c
s
a
r
e		 9
3
%		 8
1
%
S
i
h
p
e
r
o
r
s
a
r
e
u		 8
4
%		 8
8
%
S
O
O
O
S
O
G
A
L
M
N
F
F
A
R
E
E
R
I
I
N
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
i
l
E
B
I
T
t
p
e
r
a
o
n
a		 4.
3		 2.
4
E
B
I
T		 4.
8		 4
7.
(
G
)
H
t
lu
W
T
a
rv
e
s
o
m
e
v		 1
5
3
3		 1
0
6
5
O
t
i
l
E
B
I
T
k
(
E
U
R
)
p
e
r
a
o
n
a
p
e
r
g		 2.
8
0		 2.
2
5
f w
h
i
h
M
H
M
k
t
o
c
a
r
e
s
-		 0.
4
0		 0.
9
5
f w
C
h
i
h
M
H
P
d
t
o
c
o
n
s
u
m
e
r
r
o
u
c
s
-		 0.
0
0		 0.
0
3
/
fe
Pr
ic
h
ie
t
ic
e
a
c
ve
m
e
n
re
re
nc
e
p
r
e		 1
1
%
4		 1
1
2
%
C
t
t
ha
o
n
ra
c
s
re		 0
%		 6
%
Su
io
ha
p
e
r
r s
re		 8
3
%		 9
1
%
  • Good results for Marine Harvest Ireland on very good margins for organic salmon
  • Costs expected to increase in the fourth quarter (compared to Q3)
  • Improved results from Marine Harvest Faroes
  • Acquisition of Strendur processing plant

Consumer Products (1)

C
O
N
S
U
M
E
R
P
R
O
D
U
C
T
S
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
t
i
p
e
r
a
n
g
r
e
e
nu
e
s
v		 5
1
8.
4		 4
4
7.
2
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 1
6.
0		 1
4.
6
O
t
i
l
E
B
I
T
%
p
e
r
a
o
n
a		 3.
1
%		 3.
3
%
E
B
I
T		 6.
9		 1
4.
4
V
lu
l
d
(
t
d.
i
h
t
)
o
m
e
s
o
o
n
n
e
s
p
r
o
w
e
g		 4
3
0
7
4		 3
3
8
6
1
  • Seasonally record high operational EBIT
  • Impressive 27% volume increase
  • Strong consumption growth of salmon in key markets, however, fierce competition in the VAP processing industry
  • Impairment loss of EUR 9m in the wake of the fire in Marine Harvest Kritsen in July

Blini with smoked fish

Left: Salmon cubes

Right: Cod burger with crust

1) From the first quarter of 2018, Consumer Products includes the value-added operations in Americas and Asia

Feed

F
E
E
D
E
U
R m
i
l
l
ion		 Q
3
2
0
1
8		 Q
3
2
0
1
7
O
i
t
p
e
r
a
n
g
r
e
v
e
nu
e
s		 1
3
8.
5		 1
3
2.
2
O
i
l
E
B
I
T
t
p
e
r
a
o
n
a		 7.
3		 9.
4
O
i
l
E
B
I
T
%
t
p
e
r
a
o
n
a		 5.
3
%		 7.
1
%
E
B
I
T		 7.
6		 9.
2
F
d
l
d
lu
e
e
s
o
v
o
m
e		 1
1
1
9
9
2		 1
1
4
2
0
3
F
d
d
d
lu
e
e
p
r
o
c
e
o
m
e
u
v		 9
7
5
6
4		 8
9
4
5
7
  • Record high production and factory efficiency
  • Continued pressure on margins
  • Higher feed prices year-over-year, however, offset by higher raw material prices
  • Delayed construction of the new feed plant in Scotland
  • Trial-production to commence Q2-19 and production in H2-19
  • New capex forecast of EUR 140m (EUR 120m)

Third Quarter 2018 Financials, Markets and Harvest Volumes

Profit and Loss

Ma
rin
e H
est
G
arv
rou
p
EUR
mil
lion		 Q
3 2
018		 Q
3 2
017		 YT
D Q
3 2
018		 YT
D Q
3 2
017		 20
17
Op
tio
l re
nd
ot
he
r in
era
na
ve
nu
e a
co
me		 990
.2		 867
.8
14%		 2,
740
.8		 2,
643
.8		 3,
653
.8
Op
tio
l E
BIT
1)
era
na		 207
.1		 194
.2
7%		 539
.9		 61
1.3		 792
.1
Ch
e i
aliz
ed
inte
l m
in
ang
n u
nre
rna
arg		 5.7
-		 5.8
-		 2.5
-		 7.2
-		 5.7
Ga
in/l
fro
de
riva
tive
oss
m
s		 0.1 3.3
-		 6.3 8.0
-		 20
.2
-
Ne
t fa
ir v
alu
dju
stm
ent
of
bio
ntr
act
e a
ma
ss
, o
ner
ous
co
s		 -32
.0		 27
.1		 128
.5		 125
.9
-		 220
.5
-
Re
stu
ctu
ring
sts
co		 0.0 0.1 0.4
-		 0.0 2.5
-
Oth
tio
nal
ite
er
non
-op
era
ms		 0.3
-		 0.1
-		 0.2
-		 0.3 0.3
Inc
e f
iate
d c
ies
om
rom
as
soc
om
pan		 10.
0		 13.
5		 32
.0		 20
.9		 33
.7
- f
Imp
air
nt
los
ixe
d a
ts
me
ses
sse		 8.8
-		 0.2
-		 8.6
-		 2.1
-		 103
.8
-
EB
IT		 170
.3		 22
5.4		 694
.9		 489
.2		 484
.9
Ne
t fi
cia
l ite
nan
ms		 76
.7
-		 28
.0
-		 138
.2
-		 30
.0		 37
.7
Ea
rni
s b
efo
tax
ng
re		 93
.6		 197
.4		 556
.7		 519
.2		 522
.6
Pro
fit
los
s fo
r th
eri
od
or
e p		 53
.7		 150
.6		 40
5.5		 434
.5		 462
.7
Ba
sic
EP
S (
EU
R)		 0.1
1		 0.3
1		 0.8
3		 0.9
2		 0.9
7
S (
R)
Un
de
rly
ing
EP
EU		 0.3
1		 0.2
9		 0.8
0		 0.9
6		 1.2
3
Ne
t c
h fl
har
e (
EU
R)
as
ow
pe
r s		 0.1
7		 0.1
2		 0.5
0		 0.7
4		 0.7
4
Div
ide
nd
dec
lare
d a
nd
id p
sha
(
NO
K)
pa
er
re		 2.6
0		 3.2
0		 7.8
0		 9.0
0		 12.
40
Op
tio
nal
EB
IT m
in
era
arg		 20
.9%		 22
.4%		 19.
7%		 23
.1%		 21
.7%
Ha
vol
GW
T (
lmo
n)
st
rve
um
e,
sa		 109
89
6 1		 95
338
5%		 269
45
4		 257
71
8		 370
34
6
Op
tio
nal
EB
IT p
kg
inc
l m
in f
Sa
les
d M
ark
eti
1)
era
er
arg
rom
an
ng		 1.8
8		 2.0
5		 2.0
0		 2.3
7		 2.1
5
1)
RO
CE		 26
.9
%		 28
.8
%		 25
.3
%		 31
.5
%		 26
.7
%

Net fair value adjustment of biomass of negative EUR 32 million mainly due to lower average weights for the biomass in sea, partially offset by increased forward prices and increased total biomass in sea

Net financial items impacted by negative EUR 71 million due to fair value effect of the convertible bond

-

Financial position

Gr
M
in
Ha
t
ar
e
rv
es
ou
p
E
U
R m
i
l
l
ion		 3
0.
0
9.
2
0
1
8		 3
0.
0
9.
2
0
1
7		 3
1.
1
2.
2
0
1
7
No
t a
ts
n-
cu
rre
n
ss
e		 2
4
6
9.
3		 2
2
4
7.
5		 2
1
6
6.
7
Cu
t a
ts
rre
n
ss
e		 2
0
1
5
7.		 2
2
4
1.
6		 2
1
6
3.
5
To
ta
l a
ts
ss
e		 4
9
7
6.
4		 4
4
8
9.
1		 4
3
3
0.
3
Eq
i
ty
u		 2
3
4
9.
2		 2
5
2
4.
2		 2
3
1
5.
4
No
t
l
ia
b
i
l
i
t
ies
n-
cu
rre
n		 1
8
6
6.
7		 1
1
3
6.
9		 1
2
1
2
5.
Cu
t
l
ia
b
i
l
i
t
ies
rre
n		 7
6
0.
5		 8
2
8.
1		 7
9
9.
7
To
l e
i
d
l
ia
b
i
l
i
ie
ta
ty
t
q
u
a
n
s		 4
9
6.
4
7		 4
4
8
9.
1		 4
3
3
0.
3
Ne
in
be
ing
de
b
t
te
t-
t
re
s
ar		 1
2
1
8.
2		 6
6
4.
0		 8
3
1.
9
A
d
j
te
d
i
ty
t
io
us
eq
u
ra		 %
4
4.
3		 %
5
4.
3		 %
5
1.
7

Cash Flow and Net Interest Bearing Debt

Ma
ine
Ha
st
Gr
r
rve
ou
p
EUR
mi
llion		 Q
3
2
0
1
8		 Q
3
2
0
17		 Q
Y
T
D
3
2
0
1
8		 Q
Y
T
D
3
2
0
17		 2
0
17
N
I
B
D
be
inn
ing
f p
io
d
g
o
er		 9
5
0.
7
-		 0.
9
- 5
5		 8
3
1.
9
-		 8
9
0.
0
-		 8
9
0.
0
-
Op
t
ion
l
E
B
I
T
D
A
era
a
C
ha
in w
k
ing
ita
l
e
or
ca		 2
6.
3
4
1
8.
0		 2
3
1.7
1.
9
7		 0
6
4
7.
2
2.
6		 2
3.
7
4
1
4.7		 9
2.5
4
1
1
4.
6
ng
p
Ta
i
d
xe
s p
a		 -
1
1.5
-		 -
1
6.
7
-		 -
1
15
3
-		 -
1
47
9
-		 -
177
4
-
Ot
he
d
j
tm
ts
r a
us
en
Ca
h
f
low
fro
t
ion
s
m
op
era
s		 7.7
-
2
0
9.
1		 1
0.
5
-
1
3
2.
6		 2
4
3.
7
5
1
3.
4		 1
8.
0
-
5
4
2.
8		 1
8.
1
-
6
3
2.
4
Ne
t
Ca
p
ex		 1
1
8.
9
-		 5
7.
9
-		 2
6
3.
7
-		 17
9.
1
-		 2
4
8.
7
-
Ot
he
inv
tm
ts
d
d
iv
i
de
ds
ive
d
r
es
en
an
n
re
ce
Ca
h
f
low
fro
inv
tm
ts
s
m
es
en		 2
1
6.
7
-
3
3
5.
7
-		 3.
3
-
6
1.
2
-		 2
0
2.
4
-
4
6
6.
1
-		 1
4.
1
1
6
5.
0
-		 1
3.
9
2
3
4.7
-
Ne
t
int
st
d
f
ina
ia
l
ite
i
d
ere
an
nc
ms
p
a		 1
0.
2
-		 7.
0
-		 2
6.
5
-		 1
9.
2
-		 27
.5
-
Ot
he
ite
r
ms		 2.5
-		 8.
2
-		 0.
3
-		 27
1
-		 4
4.
0
-
Ne
t c
t
i
b
le
bo
ds
rte
d
on
ver
n
co
nve		 4.
3		 0.
0		 0.
0		 3
4
9.
1		 3
4
9.
1
/ re
f p
D
iv
i
de
d
tur
i
d
in
ita
l
n
n o
a
ca
p
Cu
f
fec
t o
int
st-
be
ing
de
bt
rre
nc
y
e
n
ere
ar		 1
3
0.
7
-
1.
8
-		 1
6
9.
0
-
0.
3
-		 3
9
7.
2
-
9.
6
-		 4
6
6.
5
-
1
1.
9		 6
4
0.
3
-
2
3.
2
N
I
B
D e
d o
f p
io
d
n
er		 1
2
1
8.
2
-		 6
6
4.
0
-		 1
2
1
8.
2
-		 6
6
4.
0
-		 8
3
1.
9
-
1):
N
I
B
D
d
ist
i
bu
ion
t
r
E
U
R		 8
1
%		 6
6
%		 8
1
%		 6
6
%		 7
4
%
U
S
D		 1
1
%		 1
3
%		 1
1
%		 1
3
%		 1
3
%
G
B
P		 4
%		 4
%		 4
%		 4
%		 4
%
Ot
he
ies
r c
urr
en
c		 5
%		 17
%		 5
%		 17
%		 1
0
%

1) Distribution including effect of cross currency sw aps. NIBD distribution for Q3-2018 and 2017. Gross debt distribution for Q3-2017

2018 Cash Flow Guidance

    • Working capital buildup EUR ~120m
  • Support further organic growth
    • Capital expenditures EUR ~295m (up from EUR 270m)
  • EUR 20m feed factory Scotland and EUR 5m processing plant Faroes
  • -Northern Harvest: EUR 215m
  • Norwegian farming capacity growth EUR 70m (5.7 new standard licenses)
  • Interest paid EUR ~40m
  • Taxes paid EUR ~130m (down from EUR 140m)
  • Quarterly dividend payment in Q4-2018 of NOK 2.60 per share as ordinary dividend

Overview financing

  • Refinanced bank facility: EUR 1,206m Facility Agreement
  • Maturity: 5 years (May 2022)
  • 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 of 0.125%1), conversion price EUR 13.2321
  • Partial conversion of EUR 124.2m, hence adjusted outstanding amount of EUR 215.8m

EUR 200m bond issued in June 2018

  • Tenor 5 years, EURIBOR + 2.15%
  • Long term NIBD target EUR 1,400m
E
i
d
t
t
s
m
a
e
v		 l
o
u
m
e
s		 C
d
t
o
m
p
a
r
e
o		 Q
3
2
0
1
7		 E
l
t.
s
v
o
u
m
e
s
S
l
i
u
p
p
e
r
s		 Q
3
2
0
1
8		 Q
3
2
0
1
7		 V
l
o
u
m
e		 % Q
2
2
0
1
8
N
o
r
w
a
y		 2
9
2
2
0
0		 2
8
0
7
0
0		 1
1
5
0
0		 4.
1
%		 2
5
5
0
0
0
S
l
d
t
c
o
a
n		 3
3
8
0
0		 4
2
0
0
0		 8
2
0
0
-		 1
9.
%
5
-		 3
1
9
0
0
F
I
l
d
a
r
o
e
s
a
n
s		 1
3
8
0
0		 1
8
0
0
5		 2
0
0
0
-		 1
2.
%
7
-		 1
6
1
0
0
I
l
d
r
e
a
n		 3
2
0
0		 4
1
0
0		 9
0
0
-		 %
2
2.
0
-		 2
0
0
0
T
t
l
E
o
a
r
o
p
e
u		 3
4
3
0
0
0		 3
4
2
6
0
0		 4
0
0		 %
0.
1		 3
0
5
0
0
0
C
h
i
l
e		 1
4
3
1
0
0		 1
2
7
2
0
0		 1
5
9
0
0		 1
2.
5
%		 1
3
7
3
0
0
N
h
A
i
t
o
r
m
e
r
c
a		 3
8
2
0
0		 3
9
1
0
0		 9
0
0
-		 2.
3
%
-		 3
8
6
0
0
T
l
A
i
t
o
a
m
e
r
c
a
s		 1
8
1
3
0
0		 1
6
6
3
0
0		 1
5
0
0
0		 9.
0
%		 1
7
5
9
0
0
A
t
l
i
u
s
r
a
a		 1
3
3
0
0		 1
0
0
0
4		 0
0
7
-		 0
%
5.
-		 1
2
2
0
0
O
t
h
e
r		 5
7
0
0		 4
7
0
0		 1
0
0
0		 %
2
1.
3		 6
2
0
0
T
t
l
o
a		 5
4
3
3
0
0		 5
2
7
6
0
0		 1
5
7
0
0		 %
3.
0		 4
9
9
3
0
0

Supply development

Source: Kontali

Global supply growth in line with guidance, however, some regional harvest discrepancies

  • Norway: Less harvesting than expected due to biology. Biomass currently 1% lower than last year
  • Chile: Harvested more than expected on improved biology

Development in reference prices

Q3
20
18		 Ch
an
ge
vs		 Q3
20
18		 Ch
an
ge
vs
Ma
rke
t		 Q3
20
17		 NO
K		 Q3
20
17
No
(
1)
rwa
y		 EU
R 5
.72		 4.7
%
-		 NO
K 5
4.8
4		 2.4
%
-
Ch
ile
(
2)		 US
D 5
.19		 5.4
%		 NO
K 4
2.8
1		 9.2
%
Ch
ile,
GW
T (
3)		 US
D 6
.15		 7.5
%		 NO
K 5
0.6
8		 11.
4%
No
rth
Am
eric
a W
Co
(
4)
est
ast		 US
D 3
.23		 0.3
%
-		 NO
K 2
6.6
6		 3.2
%
No
rth
Am
eric
a E
ast
Co
ast
(
5)		 US
D 3
.62		 0.3
%		 NO
K 2
9.8
1		 3.9
%
No
rth
Am
eric
GW
T (
3),
ble
nde
d
a,		 US
D 6
.89		 2.0
%		 NO
K 5
6.7
4		 5.6
%

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 GWT/kg (4) Urner Barry average GWE 10-12 lbs FOB Seattle (5) Urner Barry average GWE 10-12 lbs FOB Boston/New York

Est
im
d v
ate		 olu
me
s		 Co
d t
mp
are		 o Q
3 2
017		 Est
olu
. v
me
s		 12
mo		 nth
ari
co
mp
so		 n
Ma
rke
ts		 Q
3 2
018		 Q
3 2
017		 Vo
lum
e		 % Q
2 2
01
8		 LT
M		 PT
M		 %
EU 24
8 4
00		 24
5 2
00		 3 2
00		 1.3
%		 21
7 1
00		 94
7 1
00		 905
60
0		 4.6
%
Ru
ia
ss		 23
100		 17
800		 5 3
00		 .8%
29		 20
60
0		 89
60
0		 65
80
0		 .2%
36
Ot
he
r E
uro
pe		 20
60
0		 19
500		 1 1
00		 5.6
%		 18
30
0		 83
800		 76
00
0		 10.
3%
To
tal
Eu
rop
e		 29
2 1
00		 282
50
0		 9 6
00		 3.4
%		 25
6 0
00		 1 1
20
500		 1 0
47
40
0		 7.0
%
US
A		 106
00
0		 95
700		 10
30
0		 8%
10.		 110
80
0		 42
8 9
00		 38
1 7
00		 4%
12.
Bra
zil		 23
700		 19
60
0		 4 1
00		 20
.9%		 19
30
0		 89
20
0		 77
80
0		 14.
7%
Ot
he
r A
rica
me
s		 28
000		 26
60
0		 1 4
00		 5.3
%		 25
80
0		 113
40
0		 106
80
0		 6.2
%
To
tal
Am
eri
ca
s		 157
70
0		 141
90
0		 15
80
0		 11.
1%		 155
90
0		 63
1 5
00		 566
30
0		 11.
5%
Ch
ina
/ H
Ko
ong
ng		 25
700		 23
000		 2 7
00		 11.
7%		 26
30
0		 104
20
0		 78
100		 33
.4%
Jap
an		 13
20
0		 13
300		 100
-		 0.8
%
-		 12
100		 54
000		 58
50
0		 7.7
%
-
So
uth
Ko
/ T
aiw
rea
an		 12
500		 11
40
0		 1 1
00		 9.6
%		 13
100		 52
40
0		 42
80
0		 22
.4
%
Ot
he
r A
sia		 15
20
0		 20
700		 5 5
00
-		 26
.6%
-		 14
60
0		 72
40
0		 78
00
0		 7.2
%
-
To
tal
As
ia		 66
600		 68
40
0		 1 8
00
-		 2.6
%
-		 66
100		 28
3 0
00		 25
7 4
00		 9.9
%
All
ot
her
ark
ets
m		 29
500		 27
500		 2 0
00		 7.3
%		 25
100		 113
60
0		 105
50
0		 7.7
%
To
tal		 54
5 9
00		 520
30
0		 25
60
0		 4.9
%		 503
10
0		 2 1
48
600		 1 9
76
60
0		 8.7
%
Infl
US
fro
Eu
to
ow
m
rop
e		 21
40
0		 20
60
0		 80
0		 3.9
%		 23
00
0		 92
60
0		 90
30
0		 2.5
%
Infl
EU
fro
Ch
ile
to
ow
m		 8 1
00		 9 6
00		 1 5
00
-		 15.
6%
-		 9 9
00		 41
100		 33
80
0		 21
.6%

Global volume by market

Good demand - value of salmon continue to increase

Europe: increased consumption at higher prices

US: Strong growth of pre-packed products continue

Asia: Reduced consumption as availability of large size European salmon was scarce

Source: Kontali

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

Industry supply growth 2018E and 2019E

20
15		 20
16		 20
17		 20
18		 Es
tim
ate		 s 2
018		 Es
tim
s 2
019
ate
GW
T (
1,
000
)		 Lo
w		 Y/Y
th
gr
ow		 Hig
h		 Y/Y
th
gr
ow		 Lo
w		 Y/Y
th
gr
ow		 Hig
h		 Y/Y
th
gr
ow
No
rwa
y		 1 1
11		 1 0
54		 1 0
87		 1 1
32		 1 1
27		 4 % 1 1
36		 5 % 1 1
17		 1 %
-		 1 1
67		 3 %
UK 150 142 159 136 135 16
%
-		 137 14
%
-		 154 13
%		 164 21
%
Fa
Isl
and
roe
s		 68 70 72 65 64 12
%
-		 66 9 %
-		 65 0 % 72 11
%
To
tal
Eu
rop
e		 1 3
28		 1 2
65		 1 3
19		 1 3
32		 1 3
25		 1 % 1 3
38		 1 % 1 3
36		 0 % 1 4
03		 5 %
Ch
ile		 538 454 508 582 577 14
%		 587 16
%		 589 1 % 629 8 %
No
rth
Am
eric
a		 140 152 145 149 148 2 % 150 3 % 148 1 %
-		 158 6 %
To
tal
Am
eri
cas		 678 606 652 730 724 %
11		 736 %
13		 736 1 % 786 8 %
Oth
er		 79 79 93 94 93 0 % 95 2 % 97 4 % 105 12
%
To
tal		 2 0
85		 1 9
49		 2 0
64		 2 1
56		 2 1
42		 4 % 2 1
69		 5 % 2 1
69		 1 % 2 2
94		 6 %
Q4
20
15		 Q4
20
16		 Q4
20
17		 Q4
20
18E		 Es
tim
ate
s Q
4 2
018
GW
T (
1,
000
)		 Lo
w		 Q
/Q
wt
h
gro		 Hig
h		 Q
/Q
wt
h
gro
No
rwa
y		 310 290 322 323 318 1 %
-		 327 2 %
UK 41 37 40 40 39 3 %
-		 41 1 %
Fa
Isl
and
roe
s		 22 20 19 18 17 8 %
-		 19 2 %
To
tal
Eu
rop
e		 372 346 38
1		 38
1		 374 2 %
-		 387 2 %
Ch
ile		 152 116 145 145 140 4 %
-		 150 3 %
No
rth
Am
eric
a		 37 38 39 41 40 2 % 42 8 %
To
tal
Am
eri
cas		 189 154 185 186 180 2 %
-		 192 4 %
Oth
er		 22 20 26 28 27 5 % 29 13
%
To
tal		 583 520 59
1		 595 58
1		 2 %
-		 608 3 %
  • 2018 guidance: Global growth of 4-5% (reduced from 5-7%)
  • 2019 guidance: Global growth of 1-6%

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

Sa
lm
ies
on
sp
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
Ac
l
tua		 Q
2
2
0
1
8
Ac
l
tua		 Q
3
2
0
1
8
Ac
l
tua		 Q
4
2
0
1
8
Gu
i
da
nc
e		 2
0
1
8
Gu
i
da
nc
e		 2
0
1
9
Gu
i
da
nc
e
No
rw
ay		 2
3
6.
0		 4
9.
0		 3
9.
4		 5
5.
4		 6
6.
4		 2
1
0.
2		 5
1.
1		 4
9.
5		 7
1.
3		 5
7.
1		 2
2
9.
0		 2
3
6.
0
Sc
t
lan
d
o		 4
5.
0		 1
7.
8		 1
8.
5		 1
0.
9		 1
3.
0		 6
0.
2		 8.
7		 9.
0		 9.
0		 1
3.
3		 4
0.
0		 6
0.
0
Ca
da
na		 4
3.
3		 8.
9		 9.
4		 1
1.
2		 1
0.
0		 3
9.
4		 6.
6		 8.
0		 1
2.
4		 1
5.
2		 4
2.
2		 5
5.
0
C
h
i
le		 3
6.
9		 6.
3		 7.
7		 1
3.
7		 1
1
7.		 4
4.
9		 1
2.
4		 9.
8		 1
3.
7		 1
8.
3		 4.
3
5		 6
2.
5
Ire
lan
d		 8.
4		 0.
6		 3.
6		 3.
1		 2.
4		 9.
7		 1.
5		 1.
2		 1.
9		 1.
9		 6.
5		 9.
0
Fa
ro
es		 1
0.
9		 1.
1		 0.
0		 1.
1		 3.
8		 6.
0		 1.
0		 0.
8		 1.
5		 4.
7		 8.
0		 7.
5
To
ta
l		 3
8
0.
6		 8
3.
8		 7
8.
6		 9
5.
3		 1
1
2.
6		 3
7
0.
3		 8
1.
2		 7
8.
3		 1
0
9.
9		 1
1
0.
5		 3
8
0.
0		 4
3
0.
0

MHG volume guidance

2018 volume guidance unchanged in total, small regional differences

2019 volumes guidance of 430,000 GWT

  • Partial recovery of volumes in Norway
  • Scotland to increase due to increased smolt stockings
  • Canada to benefit from full year effect from Northern Harvest
  • Chile partial recovery of volumes

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

    • Strong demand globally
  • Fish Pool forward price (12 months) at EUR 6.8/kg (up EUR 0.4/kg since August)
  • Growth in China supported by removal of export restrictions from Norway
  • Favourable supply outlook for 2019
  • Organic growth throughout our value chain (feed, farming, processing)
  • Quarterly dividend payment in Q4-2018 of NOK 2.60 per share as ordinary dividend
  • Capital Markets Day 13 November in Edinburgh, Scotland

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 EUR 1,400m

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
te
g
ra		 (
1)
M
he
dg
in
te
ax
g
ra
(
2)
No
rw
ay		 %
0.
0		 %
5
0.
0
Sc
t
lan
d
o		 0.
0
%		 7
5.
0
%
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

Q4 2018 contract shares (% of guided volume):

  • Norway 45%
  • Scotland 73%
  • Canada 0%
  • Chile 16%
  • 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		 Gr
ou
p
OP
ER
AT
ION
AL
EB
IT
FA
RM
ING		 134
.4		 5.8 11.
4		 11.
9		 6.5 3.7 173
.8
SA
LE
S A
ND
M
AR
KE
TIN
G
Ma
rke
ts		 7.6 4.3 1.5 1.9 0.0 0.6 0.1
-		 15.
8
Co
r P
rod
uct
nsu
me
s		 9.1 2.2 0.0 3.9 0.1 0.0 0.7 16.
0
SU
BT
OT
AL		 151
.1		 12.
3		 13.
0		 17.
6		 6.7 4.3 0.6 205
.6
Fee
d		 9.1 -1.
8		 7.3
1)
Oth
itie
ent
er
s		 -5.
8		 5.8
-
TO
TA
L		 160
.2		 12.
3		 13.
0		 17.
6		 6.7 4.3 7.0
-		 207
.1
Ha
vol
e (
GW
T)
st
rve
um		 71
283		 9 0
24		 12
405		 13
724		 1 9
27		 1 5
33		 109
89
6
1) -
Op
(
R)
al G
tion
al
EB
IT p
kg
EU
tot
era
er
rou
p		 2.2
5		 1.3
6		 1.0
5		 1.2
8		 3.4
6		 2.8
0		 1.8
8
f w
hic
h F
eed
- o		 0.1
3		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
7
f w
hic
h M
ark
ets
- o		 0.1
1		 0.4
7		 0.1
2		 0.1
4		 0.0
0		 0.4
0		 0.1
4
f w
h C
hic
Pro
duc
ts
- o
ons
um
er		 0.1
3		 0.2
4		 0.0
0		 0.2
8		 0.0
7		 0.0
0		 0.1
5
AN
AL
YT
ICA
L D
AT
A
1)
Pri
ach
iev
/re
fere
ice
(
%)
ent
ce
em
nce
pr		 102
%		 114
%		 100
%		 100
%		 na 114
%		 102
%
Co
ntra
ct
sha
(
%)
re		 29% 64% 0% 24% 93% 0% 29%
Qu
alit
ior
sha
(
%)
y -
su
per
re		 92% 97% 93% 88% 84% 83% 91%
GU
IDA
NC
E
Q4
20
18
har
t vo
lum
e (
GW
T)
ves		 57
100		 13
300		 15
200		 18
300		 1 9
00		 4 7
00		 110
50
0
20
18
har
t vo
lum
e (
GW
T)
ves		 229
00
0		 40
000		 42
250		 54
250		 6 5
00		 8 0
00		 380
00
0
20
19
har
t vo
lum
e (
GW
T)
ves		 236
00
0		 60
000		 55
000		 62
500		 9 0
00		 7 5
00		 430
00
0
Q4
(
%)
20
18
tra
ct
sha
con
re		 45% 73% 0% 16% 97% 0% 36%

YTD segment overview

SO
UR
EUR
mil
lion		 No
rw
ay		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Oth
er		 Gr
ou
p
OP
ER
AT
ION
AL
EB
IT
FA
RM
ING		 35
1.7		 31.
6		 24
.8		 37.
3		 15.
3		 6.2 466
.9
SA
LE
S A
ND
M
AR
KE
TIN
G
Ma
rke
ts		 16.
6		 8.1 3.3 4.8 0.0 1.6 0.1
-		 34.
2
Co
r P
rod
uct
nsu
me
s		 26
.1		 10.
0		 0.0 10.
7		 0.5 0.0 2.8 50.
0
SU
BT
OT
AL		 394
.4		 49.
7		 28.
0		 52.
8		 15.
8		 7.8 2.7 551
.1
Fee
d		 8.2 -4.
3		 3.8
1)
Oth
ent
itie
er
s		 -15
.1		 15.
1
-
TO
TA
L		 402
.5		 49.
7		 28.
0		 52.
8		 15.
8		 7.8 16.
7
-		 539
.8
Ha
st
vol
e (
GW
T)
rve
um		 171
82
5		 26
673		 27
028		 35
965		 4 6
23		 3 3
41		 269
45
4
1) -
Op
tion
al E
BIT
r kg
(
EU
R)
al G
tot
era
pe
rou
p		 2.3
4		 1.8
6		 1.0
4		 1.4
7		 3.4
1		 2.3
3		 2.0
0
- of
wh
ich
Fe
ed		 0.0
5		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
1
- of
wh
ich
M
ark
ets		 0.1
0		 0.3
0		 0.1
2		 0.1
3		 0.0
0		 0.4
8		 0.1
3
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.1
5		 0.3
7		 0.0
0		 0.3
0		 0.1
0		 0.0
0		 0.1
9
AN
AL
YT
ICA
L D
AT
A
1)
Pri
ach
ieve
nt/
refe
ice
(
%)
ce
me
ren
ce
pr		 96% 107
%		 98% 99% na 113
%		 98%
Co
ntra
ct
sha
(
%)
re		 38% 67% 0% 24% 88% - 35%
Qu
(
%)
alit
ior
sha
y -
su
per
re		 91% 96% 89% 87% 89% 88% 91%
GU
NC
IDA
E
Q4
20
18
har
t vo
lum
e (
GW
T)
ves		 57
100		 13
300		 15
200		 18
300		 1 9
00		 4 7
00		 110
50
0
20
18
har
lum
e (
GW
T)
t vo
ves		 229
00
0		 40
000		 42
250		 54
250		 6 5
00		 8 0
00		 380
00
0
20
19
har
t vo
lum
e (
GW
T)
ves		 236
00
0		 60
000		 55
000		 62
500		 9 0
00		 7 5
00		 430
00
0
Q4
20
18
tra
ct
sha
(
%)
con
re		 45% 73% 0% 16% 97% 0% 36%

Quarterly segment overview

MH Operating Units FARMING MH Sales and Marketing
EUR million Norway Scotland Canada Chile Ireland Faroes Markets Consumer
Products		 MH Feed Other Elim Group*
Revenues and other income 408.6 56.6 79.1 75.1 21.4 10.3 633.7 507.1 138.5 5.3 $-945.7$ 990.2
Operating EBITDA 149.7 10.8 16.2 15.8 7.5 4.5 18.0 19.8 9.2 $-5.0$ 0.0 246.3
Operating EBIT 134.4 5.8 11.4 11.9 6.5 3.7 18.8 13.1 7.3 $-5.8$ 0.0 207.1
Fair Value adj on biomass, contracts/ unrealised derivatives $-25.3$ 13.8 $-5.9$ $-8.8$ $-5.2$ 0.5 $-0.1$ $-1.2$ 0.3 0.0 0.0 $-34.5$
Unrealized margin adjustment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-5.7$ $-5.7$
Restructuring cost 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other non-operational items 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-0.3$ 0.0 0.0 0.0 $-0.3$
Income/loss from associated companies 9.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 10.0
Write-down of fixed assets/intangibles $-0.1$ 0.0 0.0 0.0 0.0 0.0 0.1 $-8.8$ 0.0 0.0 0.0 $-8.8$
EBIT 118.9 19.6 5.5 3.1 1.3 4.2 18.8 2.8 7.6 $-5.7$ $-5.7$ 170.3
Contribution to operational EBIT from Markets 7.6 4.3 1.5 1.9 0.0 0.6 $-0.1$
Contribution to operational EBIT from Consumer products 9.1 2.2 0.0 3.9 0.1 0.0 $-18.8$ $-13.1$ 0.7 $-15.1$
Contribution to operational EBIT from Feed 9.1 $-7.3$ $-1.8$ 0.0
Operational EBIT incl contribution from S&M 160.2 12.3 13.0 17.6 6.7 4.3 0.0 0.0 0.0 $-6.8$ 0.0 207.1
Harvest / sales volume 71 283 9 0 24 12 4 0 5 13 7 24 1927 533 36 880 111 992
Operational EBIT/kg incl contribution from S&M (EUR) 2.25 1.36 1.05 1.28 3.46 2.80 1.88
-of which Markets 0.11 0.47 0.12 0.14 0.00 0.40 0.14
-of which Consumer Products 0.13 0.24 0.00 0.28 0.07 0.00 0.15
-of which Feed 0.13 0.07

Development in harvest volumes

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

Growth relative to same period in previous year

2
0
1
4		 2
0
1
5		 2
0
1
6		 2
0
1
7		 2
0
1
8
E		 2
0
1
9
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
E		 To
ta
l		 To
ta
l
No
rw
ay		 1
6
%		 1
%
-		 7
%
-		 -9
%		 2
7
%
-		 1
4
%
-		 4
%		 -1
1
%		 4
%		 2
6
%		 2
9
%		 1
4
%
-		 9
%		 3
%
Sc
lan
d
t
o		 1
%		 3
%		 1
0
%
-		 %
4
1		 %
7
1		 %
1
1		 %
1
0		 3
4
%		 %
-5
1		 %
5
2
-		 %
1
7
-		 %
2		 -3
4
%		 0
%
5
Ca
da
na		 1
9
%
-		 5
0
%		 8
%		 -2
3
%		 2
0
%
-		 8
%		 3
%		 -9
%		 -2
6
%		 1
4
%
-		 1
1
%		 5
1
%		 7
%		 3
0
%
C
h
i
le		 1
3
9
%		 7
%
-		 4
1
%
-		 -5
9
%		 9
%		 9
9
%		 1
2
6
%		 2
2
%		 9
6
%		 2
7
%		 0
%		 7
%		 2
1
%		 1
5
%
Ire
lan
d		 6
%		 6
%
5		 1
3
%
-		 %
-5
5		 %
1
5
0		 %
8		 %
1
2
-		 1
%
5		 %
1
3
0		 %
6
6
-		 %
3
8
-		 %
1
9
-		 -3
3
%		 3
8
%
Fa
ro
es		 1
0
4
%		 7
5
%
-		 2
7
3
%		 -3
1
%		 /m
n		 6
0
%
-		 1
1
%
-		 -4
5
%		 -1
0
%		 /m
n		 4
4
%		 2
5
%		 3
4
%		 7
%
-
To
ta
l		 2
2
%		 0
%		 9
%
-		 1
3
%
-		 1
0
%
-		 2
%
-		 1
3
%		 3
%
-		 3
%
-		 0
%		 1
5
%		 2
%
-		 3
%		 1
3
%

Cash flow guidance and historic developments

Nova Sea

Ha t v
rv
es
o		 lu
(
G
W
T
m
e		 ) (
E
B
I
T
1		 )
kg
p
er		 N
I
B
D
E
U		 Rm
h
Ow
ip
%
ne
rs		 2
0
1
6		 2
0
1
7		 Q
3
2
0
1
7		 Q
3
2
0
1
8		 2
0
1
6		 2
0
1
7		 Q
3
2
0
1
7		 Q
3
2
0
1
8		 Q
3
2
0		 1
8
No
Se
va
a		 4
8
%		 3
7
0
6
4		 4
0
7
0
0		 9
4
3
1		 1
4
2
9
2		 2.
9
7		 2.
7
2		 2.
3
3		 2.
5
2		 4
0.
-		 0
  • 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
  • 2017 dividends of NOK 500m (paid in Q2-18)
  • Marine Harvest's direct share NOK ~213m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • EUR 8.8m in Q3 2018

Debt distribution and interest rate hedging

DE
BT
VO
LU		 ME
HE
DG		 ED
AN
D F		 IXE
D R
AT
ES		 O
F IN
TE
RE		 ST
RA
TE
HE		 DG
ES
(
MA		 RC
H-M
AR
CH		 (1)
)
CU
RR
EN
CY		 DE
BT		 20 18 20 19 202 0 202
1		 202 2
(2)
28/
09/
20
18		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 e(3)
Fixe
d rat		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 e(3)
Fixe
d rat
EU
R m		 943
.9		 858
.0		 2.1
6 %		 1 2
92.
1		 2.5
1 %		 .0
712		 1.2
5 %		 380
.0		 2.2
0 %		 - 0.0
0 %
US
D m		 195
.0		 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		 39.
1		 0
34.		 3.1
3 %		 0
34.		 3.1
3 %		 23.
5		 2.8
3 %		 23.
5		 2.8
3 %		 - 0.0
0 %
Oth
(
EU
R m
)
er		 142
.9
Ma
rke
lue
of
IRS
in
ME
UR
(
28/
09/
18)
t va
ntra
cts
co
:		 58.
7
-
Ma
rk t
ark
et v
o m		 (4):
alu
atio
ffec
t in
Q3
n e		 6.9

Difference in fixed vs floating rate settled in cash in Q3 -5.4

Notes:

(1) March is the starting month for all 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 81%, USD 11%, GBP 4%, other currencies 5%
  • 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
GIC
C
UR
RE
NC
Y
HE
DG
ING		 ME
UR		 Ra
te		 MU
SD		 Ra
te
20
18		 49
.8		 9.2
9		 7.2 1.3
3
20
19		 199
.2		 9.5
7		 28
.8		 1.3
0
20
20		 149
.4		 9.9
6		 12
.0		 1.2
9
P/L
ef
fec
f c
n Q
3 (
)
t o
tra
cts
ali
d i
ME
UR
on
re
ze		 0.3
ME
UR
Ma
rke
alu
e 2
9/0
6/2
01
8
t v		 2.1
-
Ch
(
1)
an
ge		 4.2
8/0
9/2
Ma
rke
t v
alu
e 2
01
8		 2.0
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
Irel
d
an		 EU
R
Fa
Is
lan
ds
roe		 EU
R
Co
Pro
du
cts
E
ns
um
er
uro
pe		 EU
R
As
ia		 US
D
Fe
ed		 EU
R

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