Bakkafrost presentation A world-class company in the industry Capital Markets Day

Faroe Islands 12 June 2019

Page 1 DISCLAIMER

This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements.

No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary under-takings or any of such person’s officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document.

Page 2 OUTSTANDING OPERATIONAL AND FINANCIAL PERFORMANCE

Average price (NOK per kg HOG) . NOK ~20 price increase from 2013 to 2018

2013

. EBIT/kg conversion . Norwegian industry 1/3

2018 . 80%

0 10 20 30 40 50 60 70

. Performance driven by Group operational EBIT per kg (HOG, NOK) . The unique Faroese regulatory framework 2013 . Business model adapted to market and biological requirements . Markets recognizing the uniqueness in taste, texture and nutrition

2018

0 5 10 15 20 25 30 35

Bakkafrost Norway Source: Kontali, Company reports Notes: EBIT/kg figures for Norway based on largest listed companies Page 3 PERFORMANCE DRIVERS WITHIN THE FAROESE VETERINARY MODEL

Page 4 THE SECRET BEHIND THE FAROESE BUSINESS MODEL

Structure of production zones

. Strong regulatory framework

. Few players to agree on coordination of unregulated matters – avoids “tragedy of the commons”

. Limited overlap of players within production zones

. Autonomy to adjust production cycles/fallowing periods

Licenses

. Existing licenses are operated on a 12-year rolling lifespan system with automatic renewal unless . Subject to regulatory compliance

. Licenses give right to utilize given area of fjords for farming fish

. No MAB, but strict regulative measures on farming activity maintaining environmental sustainability

Page 5 INTEGRATED BUSINESS MODEL UNDERGOING SIGNIFICANT INVESTMENT PROGRAMME

Investments 2013-2018 (MDKK)

Page 6 MARINE DIET – IMPACT ON FISH WELFARE AND PRODUCT NUTRITION

Development of feed recipes - Norway Key performance indicator 2016-18 100% 90% 80% Bakkafrost 70% 60% 50% 40% 30% 20% Norway 10% 0%

2,5 2,7 2,9 3,1 3,3 3,5 3,7 3,9 4,1 4,3 4,5 Yield per smolt (kg, HOG) Fish oil inclusion Fish meal inclusion Non marine inclusion Source: Kontali, Bakkafrost Source: Holtermann Omega 3/Omega 6 ratio consumer portion 2017 54% Non marine inclusion 79%

Bakkafrost 30% Fish meal inclusion 12%

16% Fish oil inclusion 9% Norway

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Bakkafrost 2019 Norway 2015-2019 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6

Page 7 Source: Holtermann, Bakkafrost Source: Sjømatdatabasen, Bakkafrost INTEGRATED SUSTAINABILITY APPROACH HIGHLIGHTS FROM HEALTHY LIVING PLAN

Page 8 BIOLOGICAL PARAMETERS

Mortality rate Economic Feed Conversion Ratio (EFCR)

23 1,6 21 19 1,5 17 1,4 15 13 1,3 11

Mortality Mortality rate (%) 9 1,2 7 1,1 5 2016 2017 2018 1 Economic feed conversion ratio Norway Bakkafrost 2014 2015 2016 2017 2018 Norway Bakkafrost Harvest Weight (HOG)

5,5 . Indication of well managed/functioning biology

5 . Declining cost curve with weight (fixed cost dilution) 4,5

4 . Indication of animal welfare

3,5

3 Average harvest weight (HOG) 2016 2017 2018

Norway Bakkafrost

Page 9 Source: Kontali, Bakkafrost SIGNIFICANT COST ADVANTAGE

Comparison – Group cost per kg, NOK (2017) . Costs materially below average level in Norway

Bakkafrost . High other costs due to low capacity utilization . Wellboats, treatment vessels, processing Norway . 2018 costs somewhat higher than 2017

32 33 34 35 36 37 38 . Isolated mortality incident NOK per kg, HOG in box at processing plant . Adjustment difficulties for new mechanical sea lice method Comparison – Group cost items (2017) . 2019YTD costs significantly improved from 2018

. Well invested infrastructure impacting depreciation

. Good prospects for fixed cost dilution in coming years

Source: Kontali, Company reports Note: (1) Harvesting, fish transportation and processing/packaging

Page 10 PRICE ADVANTAGE – DIFFERENTIATING FACTORS

Page 11 PRICE ADVANTAGE – DIFFERENTIATING FACTORS

Size distribution and price Revenues by geography

35,0% 80,0 Eastern Europe 70,0 25% Western 30,0% Europe 60,0 31% 25,0% 50,0 20,0% 40,0 15,0% 30,0 10,0% 20,0 Proportion of harvest

5,0% 10,0 Price Norway, NOK/kg HOG Asia 24% North America 0,0% 0,0 20% 1-2 kg 2-3 kg 3-4 kg 4-5 kg 5-6 kg 6-7 kg 7+ kg

Bakka Norway Price Norway Omega 3/Omega 6 ratio consumer portion 2017

Bakkafrost

Norway

0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 Page 12 Source: Sjømatdatabasen, Bakkafrost THE BAKKAFROST AND FAROESE ORIGIN

. Premium pricing through visibility of . The Bakkafrost brand . Faroese origin

. Retail sales focus . Visibility in the shelves and wet counters

. Food service/Restaurants . Bakkafrost and/or Faroese origin on menus

Page 13 VALUE ADDED PRODUCTS SIGNIFICANT PROPORTION OF SALES

. VAP contract coverage: 30-40% Contract coverage - VAP

. Brand/Origin visibility 100%

. Reduced exposure to spot prices 90%

80% . Contracts normally vary between 6-12 months 70% . Fixed prices 60%

. 2018 impacted by change in product portfolio 50%

40% . 2019 coverage at 2015-2017 level 30%

20%

10%

0% 2012 2013 2014 2015 2016 2017 2018

VAP Spot

Page 14 PRICE ADVANTAGE

. Significant price premium Comparison – Price 2017

. Larger fish fetch a higher price Bakkafrost realised superior . Good market access

. Significant Bakkafrost brand premium component Spot Norway

. Faroese/Bakkafrost origin favoured in many markets 54,0 56,0 58,0 60,0 62,0 64,0 66,0 68,0 NOK per kg (HOG) . High marine index Comparison – Price 2017 . Excellent texture and taste 68,0 . High customer satisfaction index 66,0 64,0

62,0

60,0

NOK per kg (HOG) 58,0

56,0

54,0 Spot Norway Weight Brand Bakkafrost Downgrades Total realised premium realised price superior Source: Kontali, Bakkafrost Page 15 SUMMARY – EBIT PER KG COMPARISON

Group operational EBIT/kg Spot Norway vs realized prices, NOK (2017)

68,0

66,0 2018 64,0

62,0

60,0 2017

NOK per kg (HOG) 58,0

56,0 0 5 10 15 20 25 30 35 54,0 Bakkafrost Norway Spot Norway Weight Brand Realised Downgrades Total realised premium superior price Source: Kontali, Bakkafrost

. Material outperformance in EBIT/kg Comparison – Group cost items (2017) . Differentiated product . Sustainable farming . State of the art infrastructure

. Alignment between sustainability and profitability

Source: Kontali, Company reports Note: (1) Harvesting, fish transportation and processing/packaging Page 16 ORGANIC GROWTH DRIVERS

Large smolt strategy New production cluster New farming methods

Growth Drivers Historic harvest (tonnes HOG)

60.000

50.000

40.000

30.000

20.000

10.000

0 2012 2013 2014 2015 2016 2017 2018

Page 17 LARGE SMOLT STRATEGY - CONCEPT

. Risk management

. Production efficiency

. Growth

Page 18 LARGE SMOLT STRATEGY – EXPECTED IMPACT

Larger smolt will reduce time of cycle in sea farming Smolt release (million pcs) 20 . Harvest cycle every second year from the same fjords until effect 18 16 from larger smolt evolves 14 12 . Smolt size will gradually increase from 100-200g to 500g by 2022 10 8 . Smolt release will gradually increase from ~10-11 million pcs to 6 4 ~16 million pcs 2 0 . Production volume will gradually increase to ~76 thousand tonnes

Smolt size on released fish (size gram)

600

500

400

300

200

100

0

Page 19 NEW PRODUCTION CLUSTER - SUÐUROY

. Suðuroy is isolated in the south of the . Own production cluster . Risk reduction

. The farming operation on the islands was underdeveloped

. Bakkafrost started investment in 2016 when Faroe Farming * was acquired

. The farming legislation stipulates that all salmon farmed in Suðuroy shall be harvested in Suðuroy

*) Hov A-18 started operation in 2018

Page 20 NEW PRODUCTION CLUSTER - SUÐUROY

. Four farming sites operational in 2019 Harvest capacity in Suðuroy – tonnes HOG

16.000 . Froðba A-15 14.000 . Porkeri A-19 12.000 10.000 . Hov A-18 8.000 . Hvalba A-23 6.000 4.000 . Implementing large smolt strategy in Suðuroy 2.000 0 . Suðuroy has capacity to harvest ~ 15 thousand tonnes annually 2019E 2020E 2021E 2022E 2023E in 2023

Hvalba Page 21 ~40% HARVEST GROWTH EXPECTED (2019-2023)

. Expecting growth ~22 thousand tonnes (HOG) Estimated harvest profile 2019-2022 (Thousand tonnes HOG)

. 80 Large growth strategy 40% Growth . Development of Suðuroy 70 9% CAGR

60

50

40

30

20 Harvest,thousand tonnes (HOG)

10

0 2019 2020 2021 2022 2023

Page 22 PAST CAPACITY DEVELOPMENT INFRASTRUCTURE

. Summary main investments 2014-2018 Development in capacity constraints

. First stage of major smolt investment programme 2014 2018 Smolt . Expansion of seawater capacity

. Suðuroy FOF . Large smolt strategy Seawater . Acquisition of 2 farming service vessels . Acquisition of live fish carrier Vessels - Treatment

. Commissioning of Glyvrar processing site Vessels - Transportation

Primary processing . Large smolt capacity current bottleneck 0 20 40 60 80 100 120 Capacity - Thousand tonne HOG equivalent

2014 2018 . Material free capacity in all other parts of infrastructure

Page 23 Note: FOF Fishmeal, fish oil and fish feed EXPECTED IMPACT OF 2019-2022 INVESTMENT PROGRAMME

. Investment focus Development in capacity constraints . Large smolt capacity 2018 2022 . Vessels – Transportation Smolt

. Bottleneck shift from smolt to seawater sites FOF

. Infrastructure rigged for application of new technology Seawater

Vessels - Treatment

Vessels - Transportation

Primary processing

0 20 40 60 80 100 120 140 160 Capacity - Thousand tonne HOG equivalent

2018 2022

Page 24 Note: FOF Fishmeal, fish oil and fish feed INDUSTRY R&D INTO NEW PRODUCTION TECHNOLOGIES LARGE SCALE TRIALS UNDERWAY

Page 25 INFRASTRUCTURE PREPARED FOR APPLICATION OF NEW TECHNOLOGY

. Large ongoing R&D efforts in the industry Semi-closed production in Sea 2 individual projects . Incentive system in Norway “sponsoring” R&D efforts 6kt licence capacity . 11 significant projects approved so far for full-scale trials MNOK 800 investment

. Total investment estimate of MNOK 7,000 Subsea farming

. Bakkafrost is following the developments carefully 1 individual project 780t licence capacity . Prepared to adopt proven technology MNOK 80 investment

Closed production in Sea

4 individual projects 9kt licence capacity MNOK 1,200 investment

Offshore farming

4 individual projects 35kt licence capacity MNOK 4,900 investment

Source: Kontali, Norwegian Fishery Directorate Page 26 EXAMPLE OF OFFSHORE PRODUCTION CYCLE

Page 27 SUMMARY INVESTMENT PROGRAMME 2019-2022

. Investments next four years amount to ~ DKK 2.5 billion Planned investments 2019 - 2022

765 . Nearly DKK 2.0 billion relates to future growth 715

. Annually maintenance capex ~ DKK 100-150 million 590

390

2019 2020 2021 2022

Broodstock Smolt Farming VAP FOF

Page 28 INVESTMENTS ON LAND

Hatcheries

• Glyvradalur, expansion 9,750m3

• Norðtoftir, expansion 12,000m3

• Ónavík Suðuroy, new hatchery 12,000m3

Broodstock

• Skálavík

• 30 million roe per year production. Ready to upscale to Planned hatchery in Ónavík Suðuroy 50 million roe per year

Fishmeal, oil and fish feed

• Increased capacity and flexibility

Page 29 INVESTMENTS IN SEA

New farming sites

• Hvalba A-23

• Hov A-18

• Nes A-85

Transportation vessels

• Live fish carrier for transportation and treatment 6,000 m3

R&D projects

• Offshore projects to take growth beyond 76 thousand tonnes

Page 30 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Financial headlines Faroe Islands 12 June 2019

Page 31 BAKKAFROST HAS A GOOD HISTORIC PERFORMANCE

Revenue and margin Harvest and Group operational EBIT/kg

60 30 4.000 40%

3.500 35% 50 25

3.000 30% 40 20 2.500 25%

2.000 20% 30 15 DKK MDKK

1.500 15% 20 10 Thousand tonnes (HOG) 1.000 10% Operational EBIT margin 10 5 500 5%

0 0% 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Revenues Operational EBIT margin Harvest Operational EBIT/kg

Page 32 THE BALANCE SHEET IS STRONG (ULTIMO 2018)

. Balance sheet of DKK 5.8 billion 100%

Int. bearing ; 14% . High proportion Property, Plant and Equipment 90% Other; 20%

. Well invested infrastructure 80% Non int. bearing debt; FV Adj. ; 6% 16%

. Low proportion Intangibles 70% Biomass (cost); 18%

. Historic value of licenses 60%

. Net working capital DKK ~1.9 billion (~1.5 billion excl. 50% fair value) 40%

. % of total balance sheet ~60% of net revenues (49% excl. fair value) Equity; 70% PPE; 50% . DKK ~42 per kg harvest (DKK 35 excl. fair value) 30%

. 70% equity ratio 20%

10% . NIBD/EBITDA ~ 0.4x Intagiables; 7% 0% Assets Equity and Liabilities

Page 33 THE CAPITAL EMPLOYED HAS INCREASED STEADILY

. Increasing capital employed Capital Employed

5.000 40% . Result of expansive investment programme 4.500 35% . Very high return on capital employed 4.000 30% . 3.500 Variation between 25-35% 25% 3.000 . Reduction in 2017 capital employed 2.500 20% MDKK 2.000 . Unusually low NIBD 15% 1.500

10% Return on capital employed . Reduction in 2018 return on capital employed 1.000 5% 500 . Temporary reduction in harvest 0 0% 2014 2015 2016 2017 2018

Equity Net interest bearing debt Return on capital employed

Notes: (1) Capital employed defined as Equity + Net Interest Bearing Debt (2) Return on capital employed defined as Operational EBIT/Capital Employed

Page 34 HIGH LEVEL OF CAPITAL EMPLOYED WITH VERY COMPETITIVE RETURN

Capital Employed Return on Capital Employed

Bakkafrost Bakkafrost

Mowi

Lerøy Lerøy Seafood

Salmar Salmar

Grieg Seafood

0 20 40 60 80 100 120 140 0% 5% 10% 15% 20% 25% 30% 35% NOK/kg Return on capital employed

Property, Plant & Equipment vs. Intangibles . Bakkafrost has the highest capital employed per kg harvest

Bakkafrost . Significantly more capital tied up in PPE Mowi . State of the art infrastructure prepared for higher throughput Lerøy Seafood

Salmar . Significantly less capital tied up in licences

Grieg Seafood . Still very competitive return on capital employed 0 10 20 30 40 50 60 70 80 90 NOK/kg Notes: PPE per kg Intangiables per kg (1) Capital employed defined as Equity + Net Interest Bearing Debt Page 35 (2) Return on capital employed defined as Operational EBIT/Capital Employed INVESTMENTS IN LARGE SMOLT IS CHEAPER THAN LICENCE AUCTION IN NORWAY

. Large investments associated with large 20,000 tonnes HOG – Large smolt strategy vs. auction prices Norway smolt strategy

. A number of benefits, including capacity increase

Large smolt strategy . Harvest increase of 20k tonnes . Auction Norway MNOK ~2,500 . Large smolt MNOK ~1,000

Auction Norway

0 500 1.000 1.500 2.000 2.500 3.000 MNOK

Page 36 HOW WILL MAINTENANCE CAPEX REQUIREMENT DEVELOP?

. Historical maintenance capex < DKK 100 million Maintenance Capex

. Investments in PPE last five years has lifted 200 maintenance capex 175 . Maintenance is expected to be around DKK 100 – 150 million 150

. If cash generation from operation come under 125 pressure, a maintenance at this level should be manageable 100

75

50

25

0 2019E 2020E 2021E 2022E

Page 37 CASH CONVERSION, REINVESTMENT AND DIVIDEND

EBITDA and Cash Conversion Ratio Dividend payments

600 1.800 80% 1.600 70% 500 1.400 60% 1.200 400 50% 1.000 40% 300 800 MDKK MDKK 30% 600 200 400 20% 200 10% 100 0 0% 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Operational EBITDA Cash conversion ratio Dividend (MDKK)

Capital expenditure

800 600%

700 . 500% “We can have the cake and eat it too...” 600 400% 500

400 300% MDKK 300 200% 200 Capex/Depreciation 100% 100

0 0% 2014 2015 2016 2017 2018

Capex Capex/Depreciation

Page 38 FAROESE TAX REGIME

Corporate tax Revenue tax

. 18% of taxable income 5,5% 5,0%

Revenue tax 4,5%

. % of Nasdaq salmon price of harvested volumes 4,0% 3,5% . 0.5%: salmon price < ~ NOK 421 3,0% 1 1 . 2.5%: ~ NOK 42 < salmon price < ~ NOK 47 2,5%

. 5.0%: salmon price > ~ NOK 471 2,0%

1,5% . Only applicable on salmon sea farming operation 1,0%

. Revenue tax is deductible in taxable income 0,5% 0,0% 36 38 39 40 42 43 44 45 47 48 49 51 . Recognized as cost and not tax in P/L

Notes: (1) Currency rate NOK/DKK – 77.00

Page 39 FINANCING AND MEETING OUR FINANCIAL TARGETS

Financial targets Dividend of adjusted EPS . Equity ratio: > 50% 60%

50% 49% 50% 50% 49% 50% . Dividend: 30-50% of adjusted EPS 46%

40%

Financing 30%

. EUR 200m senior secured credit facility 20%

. Tenor 5 years with maturity Q1 2023 10%

. Accordion option to increase with another EUR 200m 0% 2014 2015 2016 2017 2018 2010-2018 . Subject to bank approval

Page 40 GOOD ACCESS TO CAPITAL - DEBT

. Current NIBD/EBITDA ratio (NIBD/Op. EBITDA) of 0.41x Illustration Debt Capacity

. Available liquidity of MDKK ~970 5.000 4.500 . Equivalent to leverage ratio of 1.20x if fully drawn 4.000

3.500

. Significant leverage capacity beyond current financing 3.000

2.500 MDKK 2.000

1.500

1.000

500

0 1,5x 2,0x 2,5x 3,0x 3,5x

Q1 2019 NIBD Undrawn credit facilities Illustration additional debt capacity

Page 41 ACCESS TO CAPITAL - EQUITY

Share Price Development . Share widely held among international institutional investors 600,00

500,00

. High liquidity in the share 400,00

300,00 . International roadshows every quarter NOK 200,00

100,00

0,00

Bakkafrost OSEAX Rebased

Shareholder Location (number per location) Share Liquidity (days req. to trade 5%/MEUR~115)

25

35% 1,844 20

30% 1,350 15 25%

20% 201 Days 90 10 15%

10% 45 5 Percent of capital 5% 36 0% - Faroe Nordic UK Other US Other 2014 2015 2016 2017 2018 Islands region Europe Page 42 30% SUPPLY INCREASE EXPECTED BY 2025 (CAGR <4%)

Total growth Average Growth % CAGR % Long term supply outlook (Kontali) (Thousand tonnes HOG) growth

Norway 359 51 31.8% 4.0% 3.000 Other Europe 123 18 53.3% 6.3% 77 11 12.6% 1.7% 2.500 North America 23 3 15.3% 2.1% Other - Cage based 10 1 18.1% 2.4% Land based 53 8 1291.3% 45.7% 2.000 Global 645 92 29.6% 3.8%

1.500

. Generally very strong market outlook

Thousand tonnes (HOG) 1.000 . Significant premium for superior products in high end

markets 500

. Bakkafrost is focused on carefully managing and 0 developing its brand in the market 2018 2019 2020 2021 2022 2023 2024 2025

Norway Other Europe Chile North America . It all comes down to the quality of the product! Other - Cage based Land based Growth

Page 43 SUMMARY

. Outstanding financial performance . Structural, technical and market based advantages . Material upgrade of infrastructure carried out in recent years

. Significant investment programme underway . Further reinforcement of infrastructure . Targeting 70% increase in harvest within 2023

. On shore infrastructure rigged for significantly higher throughput . Growth within existing licences beyond 2023 . Well positioned to take advantage of new seawater farming methods

Page 44 Page 45 Page 45 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Large Smolt Strategy Faroe Islands 12 June 2019

Page 46 STROND: 500 GRAM SMOLT PLANT (8 MILLION P.A.)

22,600 m2, Largest tanks: Diameter 18m

Proportion of plant required to produce 8m 100g smolt p.a.

Page 47 ILLUSTRATION: REQUIRED EXTENSION FOR ON SHORE PRODUCTION UP TO 5 KG

Page 48 LARGE SMOLT STRATEGY - CONCEPT

. Risk management

. Production efficiency

. Growth

Page 49 EXPERIENCE OF RELEASING LARGE SMOLT IN THE FAROES

. 2019 Smolt mortality Large smolt responding well to seawater release 7

6 . Low mortality in 2019 5 . Other companies in the Faroes have similar 4 3

experience % mortality 2 . Critical factors 1 0 . Adjustments and progressions 100-150 150-200 200-300 300-400 > 400 Mortality after 90 days . Pumping equipment Indication of relationship size/growth . Piping system for transport 2000 1800 1600 . Heat regulation 1400 1200 . 1000 CO2 Awareness 800 Weight (g) 600 400 200 0 0 30 60 90 120 150 Time (days) <100g ~200g >300g

Page 50 OVERVIEW SMOLT PLANTS

. Strond: 29,000 m3

. Viðareiði: 11,248 m3

. Norðtoftir: 5,150 m3

. Glyvrardalur: 1,537 m3

. Húsar: 1,350 m3

. Gjógv: 1,260 m3

Page 51 PHASING OF NEW SMOLT

Larger smolt will reduce time of cycle in sea farming Smolt release (million pcs) 20 . Harvest cycle every second year from the same fjords until effect 18 from larger smolt evolves 16 14 . Smolt size will gradually increase from a level of 100-200g to a 12 10 level of 500g by 2022 8 6 . Smolt release will gradually increase from ~10-11 million pcs to 4 ~16 million pcs 2 0 . Harvest volume will gradually increase to ~76 thousand tonnes

Smolt size on released fish (size gram) . Graph indicating smolt release per annum separated in size 600 categories 500

400

300

200

100

0

Page 52 FAROESE BROODSTOCK PROGRAMME

. DKK 200m Faroese broodstock investment . Optimised genetic diversity . Growth . Quality . Sea lice resistance . Reduced disease pathogens . Good results already . From 2021 all roe will be used

Page 53 STROND (8M SMOLT AT 500G, FULLY OPERATIONAL BY 2021

Page 54 Page 55 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Cost components Faroe Islands 12 June 2019

Page 56 DRIVERS FOR COST PERFORMANCE

Page 57 SIGNIFICANT COST ADVANTAGE

Comparison – Cost per kg, NOK (2017) . Costs materially below average level in Norway

Bakkafrost . High other costs due to low capacity utilization . Wellboats, treatment vessels, processing Norway . 2018 costs somewhat higher than 2017

32 33 34 35 36 37 38 . Isolated mortality incident NOK per kg, HOG in box at processing plant . Adjustment difficulties for new mechanical sea lice method Comparison – Cost items (2017) . 2019 YTD costs significantly improved from 2018

. Well invested infrastructure impacting depreciation

. Good prospects for fixed cost dilution in coming years

Source: Kontali, Company reports Note: (1) Harvesting, fish transportation and processing/packaging

Page 58 HARVEST WEIGHT

. Bakkafrost’s average harvest weight around 6 kg LWE last five years

. Cost dynamics . Declining cost with size of fish

Cost Dynamics and Weight Harvest Weight (HOG)

5,5

5

4,5

4 COST PER KG 3,5 Average harvest weight (HOG)

3 2016 2017 2018 0 1 2 3 4 5 6 7 Norway Bakkafrost HARVEST WEIGHT

Page 59 MORTALITY RATE

. Mortality rate has been lower, compared to Norway Mortality Rate

23 . 2018 was a challenging year for Bakkafrost 21 19 . Implementing new treatment methods 17 . Extraordinary high mortality in individual farming sites 15 13

11 . Development in 2019 positive Mortality rate (%) 9

7

5 2016 2017 2018

Norway Bakkafrost

Page 60 ECONOMIC FEED CONVERSION RATIO

. Feed conversion ratio around 1.2 and 1.3 Economic Feed Conversion Ratio

. Development in 2017 and especially in 2018 had a 1,6 negative impact on economical FCR 1,5

. Development in 2019 should see economical FCR in 1,4

a positive direction 1,3

1,2

1,1 Economic feed conversion ratio 1 2014 2015 2016 2017 2018

Norway Bakkafrost

Page 61 Page 62 Page 7 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Suðuroy and New Farming Technology Faroe Islands 12 June 2019

Page 63 BACKGROUND NEW LICENCES

. Bakkafrost acquired the company Faroe Farming in 2016 . Prior to this, Faroe Farming was an associated company of Bakkafrost (49%)

. Due to farming license cap in the Faroe Islands, Bakkafrost had to relinquish one license (Hov)

. In 2018, Bakkafrost got licenses to all fjords in Suðuroy, but had to relinquish other licenses

. Suðuroy was an underdeveloped area with unused potential

. Bakkafrost is now sole operator in Suðuroy

Page 64 CURRENT ASSETS SUÐUROY

Acquired assets in 2016 Investment and changes until now . Farming site Porkeri A-19 . Farming site Hov A-18 in operation again . . Farming site Froðba A-15 Other farming site relinquished instead of Hov A-18 . . Farming site Hov A-18 Farming sites updated, e.g. . . Hov was chosen to be relinquished because of Move farming sites to outskirt of fjords license cap . New feeding barges . Harvest facility was rented . 200 meter circumference cages

. Old fish processing facility not in use . Updated old fish processing facility to new harvest facility . Investment ~ DKK 50 million

Page 65 PLANNED INVESTMENTS IN SUÐUROY

. New farming site in Hvalba A-23 ~ DKK 50-70 million . No prior farming operation . First smolt release in summer 2019 . First harvest expected in 2020

. New hatchery at Ónavík (Smolt) ~ DKK 250-300 million * . Annual capacity of 3.0m 500g smolt

*) Hov A-18 started operation in 2018

Page 66 HARVEST CAPACITY

Harvest in Suðuroy tonnes HOG . Four farming sites operational in 2019 [red = after Bakkafrost acquisition] 10.000 . Froðba A-15 9.000 8.000 . Porkeri A-19 7.000 6.000 5.000 . Hov A-18 4.000 3.000 . Hvalba A-23 2.000 1.000 0 . Implementing large smolt strategy in Suðuroy 2012 2013 2014 2015 2016 2017 2018 Harvest capacity in Suðuroy – tonnes HOG . Suðuroy has capacity to harvest ~ 15 thousand tonnes 16.000 annually in 2023 14.000

12.000

10.000

8.000

6.000

4.000

2.000

0 2019E 2020E 2021E 2022E 2023E

Page 67 NEW TECHNOLOGY

Page 68 INFRASTRUCTURE PREPARED FOR APPLICATION OF NEW TECHNOLOGY

. Large ongoing R&D efforts in the industry Semi-closed production in Sea 2 individual projects . Incentive system in Norway “sponsoring” R&D efforts 6kt licence capacity . 11 significant projects approved for full scale trials MNOK 800 investment

. Total investment estimate of MNOK 7,000 Subsea farming

. Bakkafrost is following the developments carefully 1 individual project 780t licence capacity . Prepared to adopt new technology MNOK 80 investment

Closed production in Sea

4 individual projects 9kt licence capacity MNOK 1,200 investment

Offshore farming

4 individual projects 35kt licence capacity MNOK 4,900 investment

Source: Kontali, Norwegian Fishery Directorate Page 69 TECHNOLOGIES DEVELOPED FOR PROTECTED WATERS

Semi-closed production in Sea . Salmon farming currently carried out in protected waters . Global supply constraint with “open technology” . Biological carrying capacity reached/exceeded

. Aim of unlocking production capacity with new technology Subsea farming . Main purpose closed production . Reduce exposure to surrounding threats . Reduce/eliminate negative effects on environment

. Unlocking production capacity justifies significant increase in

. Upfront investments Closed production in Sea . Operating costs

. No proven technology to date . Excited to follow large-scale trials in coming years

Page 70 TECHNOLOGIES DEVELOPED FOR OFFSHORE FARMING

. Idea of moving production from protected to open waters Offshore farming

. Vast unutilized capacity in waters matching criteria . Biological conditions . Seawater temperatures

. Significant challenges, compared to traditional technology . Waves and current . Transportation requirements . Safety requirements . Investment and opex requirement

. Method replicates the life of a wild salmon . Smoltification in fresh water . Early grow out in protected waters . Later grow out in the ocean Page 71 PRODUCTION CYCLE - EXAMPLE

Page 72 FAROE ISLANDS’ AND BAKKAFROST’S INFRASTRUCTURE MEET CRITERIA

. Proven technology for protected waters can be adopted on an opportunistic basis

. Bakkafrost has the best conditions to produce strong fish ready to meet ocean environment (offshore)

. Infrastructure prepared for significant increase in throughput

. Sources of capital readily available

Page 73 Page 74 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Investment programme Faroe Islands 12 June 2019

Page 75 SUMMARY OF INVESTMENTS SO FAR

Fishmeal, fish oil and fish feed Investment in value chain from 2013 to 2018 . Fishmeal, oil and feed inventory buildings (2014-2017) . Storage tunnels (2017) . Salmon meal and oil factory (2018)

Hatcheries . Expansions of Norðtoftir and Viðareiði (2013-2016) . New hatchery Strond (2016-)

Farming . Cages, nets, land bases, catamarans and feeding barges etc.

FSV . Hans á Bakka (2015), Martin (2016) and Róland (2017)

Harvesting and processing . Glyvrar, merging 7 factories into 1 (2014-2017) . Vágur, Suðuroy (2018)

Page 76 CURRENT CAPACITY CONSTRAINTS

. Summary of main investments 2014-2018

. First stage of major smolt investment programme 2014 2018 Smolt . Expansion of seawater capacity

. New seawater licences in Suðuroy Feed . Release of capacity through large smolt strategy Seawater . Acquisition of 2 multiskill service vessels . Acquisition of wellboat Vessels - Treatment

. Commissioning of Glyvrar processing site Vessels - Transportation

Primary processing . Large smolt capacity current bottleneck 0 20 40 60 80 100 120 Capacity - Thousand tonne HOG equivalent

2014 2018 . Material free capacity in all other parts of infrastructure

Page 77 SUMMARY OF PLANNED INVESTMENTS

. Hatcheries Investments 2019 - 2022

765 . Broodstock 715

. Upgrade fish feed factory 590

. New farming sites

390 . Transportation and treatment vessel

. R&D projects

2019 2020 2021 2022

Broodstock Smolt Farming VAP FOF

Page 78 IMPACT ON FUTURE CAPACITY CONSTRAINTS

. Investment focus . Large smolt capacity 2018 2022 . Vessels – Transportation Smolt

. Bottleneck shift from smolt to seawater sites Feed

. Infrastructure rigged for application of new technology Seawater

Vessels - Treatment

Vessels - Transportation

Primary processing

0 20 40 60 80 100 120 140 160 Capacity - Thousand tonne HOG equivalent

2018 2022

Page 79 GLYVRADALUR - EXPANSION

. Glyvradalur

. Investment ~ DKK 200 million

. Expansion of ~ 9,750 m3

. Capacity after expansion ~ 11,000 m3

. Expansion will be in growth section

. Construction is expected to start in 2019

. Shorter start-up phase than new projects

. First smolt release expected in 2021

Page 80 NORÐTOFTIR - EXPANSION

. Norðtoftir

. Investment ~ DKK 240 million

. Expansion of ~ 12,000 m3

. Capacity after expansion ~ 17,500 m3

. Expansion will be in growth section

. Construction is expected to start in 2019

. Shorter start-up phase than new projects

. First smolt release expected in 2021

Page 81 ÓNAVÍK - SUÐUROY

. Ónavík, Suðuroy

. Investment ~ DKK 300 million

. ~ 12,000 m3

. New facility investment more expensive than expansion: . Administration part . Start feeding

. Around same production as Viðareiði

. Construction is expected to start in 2020

. Longer start-up phase than expansion projects

. First smolt release expected in 2023

Page 82 COST OF LARGE SMOLT STRATEGY VS. LICENCE AUCTION NORWAY

. Large investments associated with large 20,000 tonne HOG – Large smolt strategy vs. auction prices Norway smolt strategy

. A number of benefits, including capacity increase Large smolt strategy . Harvest increase of 20k tonnes . Auction Norway MNOK ~2,500 . Large smolt MNOK ~1,000 Auction Norway

0 500 1.000 1.500 2.000 2.500 3.000 MNOK

Page 83 FISHMEAL, FISH OIL AND FISH FEED

. Increased fishmeal and fish oil capacity to support marine index . Silos and storage . Production facility

. Increased fish feed capacity and flexibility . New feeding line

Page 84 SEAWATER

. Hvalba A-23 . New land base . Cages, feeding system etc. . Feeding barge . Outskirt of fjord

. Hov A-18

. Nes A-85

. Possible relocation of existing farming sites within fjords . Gøtuvík A-47 . Haraldssund A-72

Page 85 TRANSPORTATION AND TREATMENT OF FISH

. New live fish carrier

. Investment ~ DKK 300-350 million . 6,000 m3 . Freshwater treatment equipment . Higher daily deliveries to processing plant, due to higher production (waiting cages not allowed in the Faroe Islands)

. Hans á Bakka (existing live fish carrier) . Smolt transportation . Bath treatment

. Offshore ready in marine department . 2 x live fish carriers (6,000 m3 and 3,000 m3) . 2 x farming service vessels with DP

Page 86 BROODSTOCK

. Breeding programme based on gene pool of local wild salmon strain . Adaptability to local biology . Product differentiation . Veterinary control

. Support branding strategy

. Independence of external suppliers

Page 87 BROODSTOCK

. Skálavík

. Capacity to produce 30 million roe per year

. Ready to upscale production to 50 million roe per year

. Location in remote area with no farming operation

Page 88 Page 89 Page 15 Bakkafrost A world-class company in the salmon industry Capital Markets Day Sustainability Faroe Islands 12 June 2019

Page 90 HEALTHY LIVING SUSTAINABILITY PLAN: HIGHLIGHTS

Page 91 FILM: SUSTAINABILITY AT BAKKAFROST - ADAPTING TO A CHANGING WORLD

Sources: FAO, GSI, UN SGD Page 92 SUSTAINABILITY CHALLENGES

Sources: UN, Earth Overshoot Day 2019, FAO, IPCC 2018 Report Page 93 THE ROLE OF AQUACULTURE

Page 94 Source: Global Salmon Initiative BAKKAFROST’S HEALTHY LIVING SUSTAINABILITY PLAN

Page 95 HEALTHY BUSINESS

Page 96 HEALTHY BUSINESS

Page 97 HEALTHY PEOPLE

. Health, safety and wellbeing . Highly unionized workforce . Good labour conditions . Investment in training

(Total number of lost time injuries/total number of working hours) x 1,000,000.

Includes number of injuries at work and work-related, leading to unfitness for work and absence from the next working day or working shift between January – December.

Page 98 HEALTHY SALMON

. No antibiotics . Move towards non-medicinal treatment of sea lice . Certified sustainable marine content . Unique nutritional profile . 86% 2019 harvest expected to be ASC certified

Page 99 HEALTHY ENVIRONMENT

. Industry -leading feed-to-food ratio . Sustainable meal, oil and feed production . Certified marine ingredients . Non-GMO . Pro-terra soy . REDcert

. Efficient buildings . Packaging review . Minimizing impact on fjords

Page 100 HEALTHY COMMUNITIES

. Largest employer with more than 1k jobs

. DKK 1.579 million in taxes since 2010

. Employed people across 24 municipalities in the Faroes

. Updated community investment policy and strategy

. DKK 10 million Healthy Living Fund announced

. 3- year investment into natural sciences

Page 101 SUSTAINABILITY REPORTING, RATINGS & INITIATIVES

. 2017 1st Report - Oslo Børs CR Guidance . 2018 2nd Report - Global Reporting Initiative

. GSI collaboration, sharing best practice solutions . UN Global Compact (Ocean Action Business Platform) . Ocean Disclosure Project

Page 102 SUMMARY

. Healthy Living Plan focused on:

. Managing sustainability risks: for example biosecurity, operating within planetary boundaries;

. Capitalizing on opportunities: for example getting price premium from quality and brand, and cost benefits through efficiencies; and

. Creating ‘system value’.

Page 103 Page 104 Page 15 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Vessels and Processing Plant Faroe Islands 12 June 2019

Page 105 SERVICE VESSELS

. Hans á Bakka – Live Fish Carrier

Length: 75.80 m – Breadth: 16.00 m - Fish holds: 3,000 m3

Hans á Bakka is mainly used for transport of live salmon to the

processing plant in Glyvrar and can carry up to 450 tonnes wfe.

Hans á Bakka is also equipped for freshwater treatment of salmon.

. Martin – Farming Service Vessel

Length: 73.40 m – Breadth: 16.63 m - Gross tonnage: 2,466 t

Martin is treating salmon for lice and is also used in other farming

operations, such as towing and anhcor handling

Page 106 SERVICE VESSELS

. Róland – Farming Service Vessel

Length: 71.99 m – Breadth: 16.01 m - Gross tonnage: 2,168 t

Róland is treating salmon for sea lice and is also used in other

farming operations, such as towing and anchor handling.

Róland is also cleaning nets with two ROV net-cleaners.

. In addition Bakkafrost has 3 smaller Live Fish Carriers:

Vesthav mainly used for transport of live salmon to the processing plant in Suðuroy.

Stígabrúgv used for transport of smolt.

Víkingur used for transport of smolt.

Page 107 PROCESSING PLANT - GLYVRAR

. The plant 23,500 m2

Gutting and Value Added Products . Capacities per day: Hans á Bakka Administration . Receiving 450 tonnes LW Box storage . Gutting 375 tonnes GW . Filleting 160 tonnes Styropor box production

. 100,000 tonnes through Harvest per year

Page 108 COST SAVING AND SYNERGIES ACHIEVED

. Long ramp-up time for the production Harvest productivity per week

. Bottlenecks have been identified and handled

. New stun & bleed system installed

. Pallet robot system further automated

. Synergies from integrated production

Page 109 FIXED COST DILUTION POTENTIAL

. Currently high costs per kg . Low utilization of plant

. Significant potential through higher throughput . Staff costs . Maintenance . Other . Depreciation

Page 110 OBJECTIVES

. Capacity

. Efficiency

. Flexibility

. Quality

. Meet future demands

. Minimize biological risk

Page 111 VALUE ADDED PRODUCTS ABILITY TO MEET CUSTOMER REQUIREMENTS

. Good flexibility to produce finished products demanded by the market . Fresh and frozen natural products

. From live to finished quality products within 4 hours . Sub chilling . Various types of packaging . Retail and catering . Highest productivity

. State of the art equipment . 30 – 35,000 tonnes of raw material / year

. Lowest cost of production per unit

. High flexibility and multi product capability

Page 112 PLANT SETUP

Page 113 Page 114 Page 10 Bakkafrost presentation A world-class company in the salmon industry Capital Markets Day Market Faroe Islands 12 June 2019

Page 115 MINTEL PRESENTATION

Page 116 30% SUPPLY INCREASE EXPECTED BY 2025 (CAGR <4%)

Total growth Average Growth % CAGR % Long term supply outlook (Kontali) (Thousand tonnes HOG) growth

Norway 359 51 31.8% 4.0% 3.000 Other Europe 123 18 53.3% 6.3% Chile 77 11 12.6% 1.7% 2.500 North America 23 3 15.3% 2.1% Other - Cage based 10 1 18.1% 2.4% Land based 53 8 1291.3% 45.7% 2.000 Global 645 92 29.6% 3.8%

1.500

. Generally very strong market outlook

Thousand tonnes (HOG) 1.000 . Significant premium for superior products in high end

markets 500

. Bakkafrost is focused on carefully managing and 0 developing its brand in the market 2018 2019 2020 2021 2022 2023 2024 2025

Norway Other Europe Chile North America . It all comes down to the quality of the product! Other - Cage based Land based Growth

Page 117 PRICE ADVANTAGE – DIFFERENTIATING FACTORS

Page 118 KEY SELLING POINTS

. Superior Quality is the fulcrum . Size . Taste . Health (Omega-3 and Omega 3/Omega 6 ratio) . Food safety

. Products free from . Antibiotics . GMO ingredients . Ethoxyquin . Chemical lice bath treatments

. Cleaned for environmental pollutants (dioxin and dl-PCB)

Page 119 SALES ORGANIZATION

. Bakkafrost Sales Main sales office is in Glyvrar in the Faroe Islands Faroe Islands (Main office)

Bakkafrost Sales Bakkafrost Sales . Local sales offices in UK and USA Logistics Marketing

. Sales, logistics and marketing is handled in-house Bakkafrost UK Bakkafrost USA United States of America

Page 120 WELL DIVERSIFIED CUSTOMER BASE

Sales breakdown – All products 2018 . Even split among the 4 main markets North America; 18%

Europe; 30%

. Close relationship with key customers (partners)

Asia ; 25% . Fresh sales Eastern Europe; . 20% B2C 27% . 80% B2B Sales breakdown – Fresh products 2018

North America; 19% Eastern Europe; 28% . Frozen sales . 80% B2C

. 20% B2B Asia ; 26%

Europe; 27%

Page 121 THE BAKKAFROST BRAND AND FAROESE ORIGIN

. Premium pricing through visibility of . The Bakkafrost brand . Faroese origin

. Retail sales focus . Visibility in the shelves and wet counters

. Food service/Restaurants . Bakkafrost and/or Faroese origin on menus

Page 122 VALUE ADDED PRODUCTS SIGNIFICANT PROPORTION OF SALES

. VAP contract coverage: 30-40% Contract coverage - VAP

. Brand/Origin visibility 100%

. Reduced exposure to spot prices 90%

80% . Contracts normally vary between 6-12 months 70% . Fixed prices 60%

. 2018 impacted by change in product portfolio 50%

40% . 2019 coverage at 2015-2017 level 30%

20%

10%

0% 2012 2013 2014 2015 2016 2017 2018

VAP Spot

Page 123 PRICE ADVANTAGE

. Significant price premium Comparison – Price 2017

. Larger fish fetch a higher price Bakkafrost realised superior . Good market access

. Significant Bakkafrost brand premium component Spot Norway

. Faroese/Bakkafrost origin favoured in many markets 54,0 56,0 58,0 60,0 62,0 64,0 66,0 68,0 NOK per kg (HOG) . High marine index Comparison – Price 2017 . Excellent texture and taste 68,0 . High customer satisfaction index 66,0 64,0

62,0

60,0

NOK per kg (HOG) 58,0

56,0

54,0 Spot Norway Weight Brand Bakkafrost Downgrades Total realised premium realised price superior Source: Kontali, Bakkafrost Page 124 SATISFIED CLIENTS – ANNUAL SURVEY TO EXISTING CLIENTS

. Customer net promoter score 8.24 out of 10

. Satisfaction with the salmon quality provided by Bakkafrost: . 97% are satisfied, more than satisfied, or very satisfied PRODUCT PICS

. Satisfaction with delivery service: . 82% are satisfied, more than satisfied, or very satisfied

. Satisfaction with the service provided by your Bakkafrost contact: . 95% are satisfied, more than satisfied, or very satisfied

Page 125 CERTIFICATIONS

Page 126 Page 127 Page 13