Slides
Page 1
Capital Markets DaysBAKKAFROST GROUPFaroe Islands –17-18 June 2025
Page 2
2Welcome
Page 3
DISCLAIMERThis 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, thefairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, orany of its principal shareholders or subsidiary under-takings or any of such person’s officers or employees oradvisors accept any liability whatsoever arising directly or indirectly from the use of this document.
Page 4
4 Content• Strategic Update• Market• Sustainable Growth• Capex & Finance• Operational Update• Sustainability• Technology & Digitalisation
Page 5
5Strategic Update
Page 6
BAKKAFROSTFOUNDED IN 1968 - FARMED SALMON FOR 45 YEARS 6 Herring processing 1974First farming site 1979 The founding brothers (Hans, Róland and Martin)
Page 7
• Havsbrún established in 1966 by Dagsbrún 2/3 (“Hvannasund brothers”) and 1/3 by Havsild• Daily capacity was 500 tonnes of raw materialEsmar Fuglø Ditleif Eldevigfirst MD first Chairman• Board members were Hans Pauli Johannesen, Óli Johannesen, Kaj Johannesen, Svenning Johannesen and Petur A. Joensen, Jákup F. Øregaard7 HAVSBRÚN – ACQUIRED IN 2012FOUNDED IN 1966 – FISHMEAL AND OIL PRODUCTION 59 YEARS – FEED PRODUCTION 40 YEARS Plant construction 1966Havsbrún fishmeal factory 80’tiesFishmeal operation in 70’ties First raw material intake30.06.1966First contract for fishmeal18.06.1966Raw material sourcing 1966 – 2012 [tonnes]
Page 8
BAKKAFROST TODA Y 8 Applecross hatchery, ScotlandGlyvradal hatchery, Faroe Islands Strond hatchery, Faroe Islands Norðtoftir hatchery, Faroe Islands Fishmeal oil and feed plant, Faroe IslandsHQ, Harvest and Processing facility, FSV fleet, Faroe Islands
Page 9
BAKKAFROST TODA YA GLOBAL COMPANY 9 BAKKAFROST Leading Producer of Superior Quality Salmon from the Faroe Islands and Scotland Established:1968 Headquarters:Glyvrar, Faroe Islands Employees:Approximately 1,600 full-time employees across the Group Markets Served:40+ countries Listed on:Oslo Børs with ticker code BAKKA LEI: 2138007LH7OP4V112978 Parent company:Bakkafrost P/F, Faroese registration number 1724
Page 10
10 STATE-OF-THE ART AND FULLY INTEGRATED VALUE CHAINFULFILLING THE WORLD’S GROWING DEMAND FOR HEALTHY AND SUSTAINABLY PRODUCED PROTEIN 750 tonnes(edible yield) 2,200 tonnes(edible yield)Converting low food value proteins into high volume & value healthy proteinsEmployees ultimo 20241,567Revenue 2024 (DKK)~7.3 bnMarket cap~NOK 38 bn~USD 3.4 bnHarvest volume 2025E97,000tFCR 2024~1.09in the Faroes100% ASCcertified in the FaroesScope 1,2 & 3 50% reducedby 2030Net Zero by 2050Op.EBIT 2024 (DKK) ~1.55 bn
Page 11
11 Our mission is simple: To produce the best salmon in the world!
Page 12
ROOTED IN OUR VALUESVISION AND MISSION IMPLEMENTED THROUGH OUR SUSTAINABILITY FRAMEWORK 12
Page 13
- 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.002021 2022 2023 2024 2025 YTDPremium / KG - FOPremium / KG - SCT 22 51 86 91 2010 2015 2020 2024kt (HOG)WE DELIVER ON OUR MISSIONGROWING PRODUCTION AND SOLID PRICE ACHIEVEMENT 13 SalmonFish feedFish mealFish oil60 79 112 140 2010 2015 2020 2024kt25 49 61 66 2010 2015 2020 2024kt10 8 10 11 2010 2015 2020 2024ktSource: Kontali, Fishpool, BakkafrostBakkafrost price premium vs. Norwegian Ex-Works* prices(NOK/kg)• Salmon harvest more than quadrupled since listing• EBIT increased from DKK 247 million to 1.55 billion• Turnover grown from DKK 820 million to DKK 7.3 billion* Nasdaq less freight & sales commissionTurnoverOP EBIT820 2,850 4,652 7,334 2010 2015 2020 2024mDKK247 1,001 621 1,550 2010 2015 2020 2024mDKK
Page 14
WE DELIVER ON OUR MISSIONPROVEN BY CERTIFICATIONS – CELEBRATED BY AWARDS 14 Award-Winning Certified Excellence Time Magazine
Page 15
WE DELIVER ON OUR MISSIONFARMING PERFORMANCE BENCHMARK 15 Net harvest ratio per input smolt(WFE)Average harvest weight(kg WFE)Producing “more with less”• Bakkafrost Faroes outperforming all regions• Bakkafrost Scotland improving performanceBakkafrost Faroes harvesting larger fish than all other regionsSource: Kontali, BakkafrostSource: Kontali, Bakkafrost Norway Faroe Islands Scotland Bakkafrost FO Bakkafrost SCT 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 2014G 2015G 2016G 2017G 2018G 2019G 2020G 2021G 2022G 2023GE 2024Gproj Chile North America Iceland Norway Faroe Islands Scotland Bakkafrost FO Bakkafrost SCT 4.00 4.50 5.00 5.50 6.00 6.50 7.00 2014G 2015G 2016G 2017G 2018G 2019G 2020G 2021G 2022G 2023GE 2024Gproj Chile North America Iceland
Page 16
WE DELIVER ON OUR MISSIONFARMING PERFORMANCE BENCHMARK 16 Economic Feed Conversion Ratio (harmonised WFE-to-HOG ratio)Survivability(% of fish transferred to marine)Source: Kontali, BakkafrostHighly resource efficient• Bakkafrost Faroes leading on Economic Feed Conversion Ratio• Bakkafrost Scotland improving performance after challenging periodBakkafrost Faroes continues to increase its industry-leading survivabilitySource: Kontali, Bakkafrost Scotland Norway Faroe Islands Bakkafrost FO Bakkafrost SCT 1.31.51.71.92.1 2014G 2015G 2016G 2017G 2018G 2019G 2020G 2021G 2022G 2023GE 2024Gproj Chile North America Iceland Norway Faroe Islands Scotland Bakkafrost FO Bakkafrost SCT 5060708090100 2014G 2015G 2016G 2017G 2018G 2019G 2020G 2021G 2022G 2023GE 2024Gproj Chile North America Iceland
Page 17
17Market
Page 18
GEOPOLITICAL RESILIENCEFLEXIBILITY AND AGILITY HAVE NEVER BEEN MORE IMPORTANT 18 Global trade volatility, sanctions, and shifting regulations pose real risks to seafood exporters.Geopolitical resilience safeguards market access, supply continuity, and value stability.Bakkafrost strategyAgile & Integrated Value Chain• Flexibility to shift volumes across markets.• Flexible utilisation of Value Added Processing (VAP) to serve different market segments (retail vs. foodservice)• Multiple processing setups reduce dependency on single geographies.• Own logistics solutions allow routing around disruptions.Broad Market Access & Intelligence• Diversified export footprint reduces reliance on any one region.• Broad customer base.• Local presence in US, UK and EU• Strong market intelligence supports pricing, volume shifts, and proactive risk mitigation. Markets served in 20242015VAPHOG2020 2024AsiaEU + UKUSEastern Europe
Page 19
MEGATRENDS DRIVING THE DEMAND FOR SALMONGROWING POPULATION AND MIDDLE-CLASS 19 - 1,000 2,000 3,000 4,000 5,000 6,000Asia Africa Europe Latin America& CarribeanNorth America Oceania202020502020 20507.8 9.8 Source: United NationsTotal World Population Source: Brookings Institute “88 percent of the next billion entrants into the middle-class will be in Asia”World Population by regionSource: United Nations“By 2050, we expect a world where perhaps7 out of 10people are middle-class or richer”“We are adding 110 to 115 million people into the middle class each year, despite all the difficulties the global economy is presenting”The world’s population is growingThe middle-class is growingSource: Brookings InstituteSource: Brookings Institute
Page 20
11.58 Bn Health-Conscious ConsumersConsumers increasingly seek healthy, nutritious foods, and salmon’s rich protein and omega-3 content make it a preferred choice.Sustainable Seafood PracticesSustainable seafood practices and increased awareness of environmental impact contribute to the rising demand for salmon. Culinary Interest and Gourmet CookingThe rise of culinary interest and gourmet cooking has made salmon a conventiant, versatile and desirable ingredient. The Global Sushi Market doubling over 10 years20 MEGATRENDS DRIVING THE DEMAND FOR SALMONCONSUMER PREFERENCES Source: Spherical InsightsUSD
Page 21
OUR DIFFERENTIATION STRATEGY IS WELL ALIGNED TO CONSUMER TRENDS• Large sized fish short in supply• Faroes and Scotland preferred niche origins• Natural diet - healthy salmon - healthy products • Alignment between sustainability and healthy salmon•High control of value chain •Control of food safety standards and traceability• ESG certifications entry card to high end segments•Aquaculture stewardship council (ASC) •Best Aquaculture Practices (BAP)Healthy salmon appreciated by the high-end market!21
Page 22
22 PRODUCING A SUPERIOR QUALITY AND HEALTHY PRODUCT IS THE CORE OF OUR STRATEGY
Page 23
23 MARKET FOCUSMARKET DIVERSIFICATION HIGH-END FOCUS WITHIN TARGET SEGMENTS RETAIL HORECA WHOLE SALE HOME / ONLINE
Page 24
EXAMPLES BAKKAFROST BRANDING BRANDING“HEIMLAND BY BAKKAFROST” AND “NATIVE HEBRIDEAN”
Page 25
BRAND DEVELOPMENT AND VALUE ADDED GROWTH
Page 26
GOOD MARKET OPPORTUNITIES FOR SALMONLOW CONSUMPTION IN SEVERAL LARGE MARKETS 26 Salmon consumption per capita (kg wfe)Source: SpareBank 1 Markets, KontaliSalmon price vs. substitutes (indexed – 6-month moving average)Source: DnB Markets4.72.72.11.90.1012345• Scandinavian consumption is twice as high as in the large European countries…• …2½ times higher than in the US• …and 50 times higher than in China• Salmon is competitively priced vs. substitutes
Page 27
SHORT-TERM MARKET DYNAMICS ARE MORE VOLATILEPRICES DEPEND ON AVAILABILITY OF DIFFERENT QUALITIES AND SIZES OF SALMON TO THE SPOT MARKET 27Recently spot prices have been more volatile (superior 4-5, NOK/kg)Premium for large fish fluctuates depending on availability of large fish 30.00 50.00 70.00 90.00 110.00 130.00 150.001 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 512019 202020212022202320242025-12%10%-30%-20%-10%0%10%20%30%40% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2-3kg / 4-5kg6-7kg / 4-5kg Factors affecting pricing• Downgrade share• Contract share to retail• Weight distribution of supplied fishNorwegian downgrade share correlated to spot prices Source: KontaliSource: FishpoolSource: Kontali 0%5%10%15%20%25%30%35%40%2018 2019 2020 2021 2022 2023 2024 2024-Q1 2025-Q1
Page 28
OVERALL MARKET BALANCESUPPLY GROWTH FADING OFF TO 2-3% GROWTH AND BELOW DEMAND GROWTH OF AROUND 7% 28Source: KontaliSupply change vs price change-10%-5%0%5%10%15%20%25%201020112012201320142015201620172018201920202021202220232024202520262027202820292030Historical data ForecastGlobal supply growth YoYSource: Arctic Securities Price equilibrium at around 7% supply growth2-3% growthThe market imbalance is supportive for strong long-term salmon prices
Page 29
Landbased:(same scale as diagram below)0500100015002000250030003500201020112012201320142015201620172018201920202021202220232024202520262027202820292030Historical data ForecastOthers - Cage-basedRussiaIcelandAustraliaIrelandFaroe IslandNorth AmericaUnited KingdomChileNorway SUPPLY OUTLOOKMARGINAL CONTRIBUTION FROM NON-CONVENTIONAL FARMING METHODS 29Source: KontaliOcean-farmed harvest of Atlantic Salmon, off-shore included(tonnes wfe)additional supply from landbased(tonnes wfe)050100150201020112012201320142015201620172018201920202021202220232024202520262027202820292030 Historical data Forecast supply included from off-shore(tonnes wfe)050100150201020112012201320142015201620172018201920202021202220232024202520262027202820292030 Historical data Forecast +Total supply growth of 2.4% CAGR in 2025-2030Landbased harvest of Atlantic Salmon(tonnes wfe)
Page 30
30SustainableGrowth
Page 31
Pro:• Immediate upscaling• Platform for new growth options• Operational synergiesPro:• Scalability• Moderately cost/efficient• Well-known to BakkafrostPro:• Production near end-markets• Potentially lower freight costsGROWTH OPTIONS FOR BAKKAFROST 31 Pro:• Cost-efficient and well-known• Flexible licenses in the Faroes• Unutilised and available licensesBakkafrost’s growth strategy:• Continue following and optimise on the hybrid strategy with large-smolt• Using new technology to maximise conventional farming (Faroes); increasing license utilisation and capacity (Scotland)• Continue the preparation for future off-shore farming in the Faroe Islands• Monitor the market for potential aquisitionsPro:• ScalabilityConventional(New technology exposed sites)LandbasedOff-shoreLarge-smolt hybrid(Conventional + Landbased)AquisitionsCon:• Capital intense• Organisational and operational complexity and fitCon:• Moderate Capex• Lead-timeCon:• High Capex• High technical & operational risk• Supporting infrastructure needsCon:• High Capex and Opex• High technical & operational risk• Requires advanced skillsCon:• License constraints• Environmental limits
Page 32
GROWING WITH THE LARGE-SMOLT STRATEGYFARMING CYCLES GETTING SHORTER WITH LARGE HIGH-QUALITY SMOLTLarge Smolt Strategy-Reduced biological risk- Increased production efficiency- Enables Sustainable Growth 32
Page 33
LARGE-SMOLT STRATEGY REQUIRES HIGH LAND-BASED CAPACITYOVERIVIEW OF CURRENT AND POTENTIAL FUTURE HATCHERIES 33 Strond NorðtoftirHúsar ViðareiðiSkálavík (2026) Gjógv Glyvradal Ónavík (future) Faroe IslandsCapacity 2025: 9,500tAddition of Skálavík: 13,250tfuture w. Ónavík: 17,000tApplecrossCouldoranKLM Hatchery 2 (future) ScotlandCapacity 2025: 3,900tfuture w. Hatchery 2: 7,650t170t185t3,750t1,900t3,750t3,750t2,200t1,500t100t3,700t100t3,750t
Page 34
GROWT ENABLED BY FLEXIBLE FAROESE LICENSE SYSTEMEXCLUSIVITY ALLOWS FOR NEW SITES WITHIN EXISTING LICENSESQuick-facts• All fjords are given• A license gives exclusivity: ”One fjord = One operator”• Possible to get new sites within existing licenseChallenge• Sea lice, fish welfare and environmental boundries arelimiting factors Solution• New and existing technology can open up for increasedproduction on existing sites and establishment of new farming sites34 Closed/semi-closed systemsSubmerged pensWaste collectionCurrent deflectors
Page 35
GROWTH OPPORTUNITIES IN SCOTLAND ARE SIGNIFICANTEXISTING AN NEW LICENSES, COMBINED WITH LARGE SMOLT 35 1. Productivity improvements with high-quality 250g smolt2. Increase utilisation of current licenses• Harvest in 2025 is 20kt • Existing operational licenses allowmaximum standing biomass of 72kt•At acquisition in 2019, maximum allowed biomass was 65k3. Secure new licenses• Aproximately 10kt of consent in pipeline4. Relocate and consolidate sites• Significant growth potential in Western Isles5. Achieve from the effect of increasing smolt weight to 500g Growth opportunities
Page 36
778510511220 25 40 50 2025 2026 2028 2030Faroe IslandsScotland GROWTH PATH TO 2030TOTAL HARVEST OF 162,000 36 Total harvest volume (kilotonnes, HOG)The roadmap to 2030 harvest volumeFaroe Islands:• Complete construction of hatchery at Skálavík• Continue ramp-up of existing hatcheries• Healthy smolt for optimal yield per smolt ratio• Continued farming optimisationScotland:• Ramp-up the utilisation of Applecross• Utilise existing farming capacity97110145162
Page 37
TimelineEgg-fry-parr, Module A-B-C………. Q2 2026 Smolt, Module D-1 & D-2………….. Q2 2026 Post smolt, Module E-1 & E-2……. Q1 2027First smolt release…………………… Q4 2027Annual Capacity7.5m smolt at 500g 37 COMPLETING THE SKÁLAVÍK HATCHERYSTATUS AND OUTLOOK Q2 2025Q1 2027A-B-CD-1D-2E1E2Egg Alevin Fry Parr Smolt Large smolt0,1g 1-5g 5-60g 60-150g 250-500g Phases from egg to post-smolt of Atlantic salmon (Salmo salar) involves several key biological stages, each with specific environmental requirements and physiological changes
Page 38
FISH MEAL, OIL AND FEED INVESTMENTSADDING MORE SILOS TO IMPROVE FLEXIBILITY WHILE INCREASING FEED PRODUCTION 38Feed production (kilotonnes) 2025• Finalise the feed plant expansion to enable an annual production capacity of 275 kt feed (expandable to 400kt)2026-2030 Capex• 8 new raw material silos to be built to increase flexibility1451602002202025 2026 2028 2030
Page 39
Farming LicenseINVESTING IN MARINE FARMING GROWTH IN THE FAROE ISLANDSWORKING ON 5 NEW FARMING SITES - EXPECT 2 NEW FARMING SITES BEFORE 2030Growing with optimization and “new technology”Potential new site locations• Cost-efficient organic growth within existing licenses(long-term potential: +50%)• New sites used in combination with other sites to increase efficiency Areas for potential new farming sites39 Several “low hanging fruits” – some already picked0246810121416Capex: Cost / KG increaseOpportunity cost (2023)Opportunity cost revision (2025)Offshore costShort-term focus (in 2025):•Increase stocking on four sites•Startup of one new siteCompleted or in progress
Page 40
MORE FISH IN THE WATER REQUIRE INVESTMENTS IN TREATMENT AND TRANSPORTPLAN TO BUILD 2 NEW DUAL FRESHWATER TREATMENT VESSELS 40New vessel for Faroe Islands:• Larger than Bakkafossur with similar capabilitiesNew vessel for Scotland:• Similar size and capabilities as Bakkafossur
Page 41
41 INCREASED EFFICIENCY HARVEST & PROCESSING SITE IN THE FAROE ISLANDSACCOMMODATING GROWTH – LIVE FISH HOLDING TANKS (LFHT) Increased Processing Capacity• 500 tons/day capacity, two shift operation• Increase efficiency and operational stabilityEnhanced Wellboat Flexibility• Reduces dependency on an additional wellboat• Fewer weather-related disruptions• Low energy transport and coolingBest Product Quality and Market Responsiveness• Consistent processing flow • Best fish welfare with optimised cooling process• Secure highest product quality• Buffering market fluctuations LFHT
Page 42
Highlights of new facility:• Highly automated and efficient• High-quality focused processing• Swim-through harvest• Latest processing technology• Automated packaging and palletisation• Primary & Secondary (VAP) processing capabilities• Energy efficient42 NEW HARVEST AND PROCESSING FACILITY IN SCOTLANDACCOMMODATING GROWTH – INCREASING COST-EFFICIENCYThe new facility in Scotland will build on blueprint principles from Bakkafrost’s facility in the Faroe Islands
Page 43
BROODSTOCK5Y GROWTH PLAN 43 7.96.27.59.511.015.022.02024 2025 2026 2027 2028 2029 2030Planned roe delivery to hatcheries (million) Capacity:• 50m roes annually(60m with Svínoy)• Goal to ramp-up to becoming fully self-supplied
Page 44
Expansions of Strond hatchery in the Faroes• Can be built on existing site (Bakkafrost owns the land)• Increase flexibility of smolt production (size and timing)• Shorten marine production cycleNew hatchery at Ónavík (Faroe Islands)• Bakkafrost already owns the land for the site – and have achieved license to build• Can add around 3,750 tonnes of extra smolt production capacity• Similar capabilities and setup as Strond and Skálavík2ndhatchery in Scotland• Lease option and planning permission are in place• Can add around 3,750 tonnes of extra smolt production capacity• Similar capabilities and setup as Applecross44 OPTIONS – NOT INCLUDED IN THE 2026-2030 CAPEX PLANCAPACITY AND FLEXIBILITY TBD
Page 45
45 Capex& Finance
Page 46
2026-2030 CAPEX IS 5.0BN - 1,3BN LOWER THAN THE PREVIOUS 2024-2028 CAPEX PLANREDUCE BIOLOGICAL RISK, IMPROVE EFFICIENCY AND INCREASE ORGANIC GROWTHFaroe Islands:• Complete Skálavík Hatchery•Reaching total annual production capacity of 12 kt/year in freshwater• 8 new silos to increase flexibility in FOF• New farming sites within existing licenses & optimisation• New farming technology to accommodate organic growth• Harvest Expansion – Live fish holding tanksScotland:• Site expansions & optimisation• New harvest and processing plantFSV (shared resource)• 2 new service vessel to accommodate growth (transport & treatment)46 2026-2030 Capex split across value chain(mDKK)245 mDKK is allocated to energy transition across the value chain+135 mDKK spend in 2024 & 20251,550 1,535 768 667 297 220 FSV Marine Harvest &ProcessingFreshwater FOF Other
Page 47
FSV*ScotlandFaroe IslandsFSVScotlandFaroe Islands 2026-2030: INVESTING 5.0BN IN SUSTAINABLE GROWTH162,000 TONNES HARVEST IN 2030, FAROE ISLANDS AND SCOTLAND COMBINED2026-2030 Capex* of DKK 5.0 bn 47 Harvest volume (kilotonnes)*Including maintenance capex6 DKK/KG2026-2030 Capex per region10 DKK/KG778510511220 25 40 50 020406080100120140160180Faroe IslandsScotlandHistorical total harvest971101451622026-2030 Capex per harvest2.2 bn2.2 bn1.6 bn4 DKK / KG7 DKK / KG2 DKK / KG* Per kg harvested total company1.3 bn02468101214161802004006008001,0001,2001,4001,6001,800 Investments per kg (DKK) DKK MillionCapex Historical2026-2030 Capex plan - Faroes2026-2030 Capex plan - Scotland2026-2030 Capex plan - FSVInvestments per kg (DKK)
Page 48
STRICT FOCUS ON COSTBAKKAFROST FEED PRODUCTION COST 48 Total Feed Cost (DKK/kg produced)Total cost of feed produced• “Perfect storm” during 2022 and into Q1 2023 with significant cost increase on vegetable AND marine raw materialsStabilised raw material costs• Marine at a higher level• Vegetables slightly above 2019-2020 levelsProduction costs only 3% up since Q1 2019• Increased efficiency and strong cost controlTotal feed cost expected to increase slightly78910111213Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Q323Q423Q124Q224Q324Q424Q125Q225eQ325eQ425eQ126eMarine205%Total Raw Material 154%Vegetables109%Production cost103%50%70%90%110%130%150%170%190%210%230%Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Q323Q423Q124Q224Q324Q424Q125Raw material cost - marine vs. vegetable (Indexed vs. Q1 2019)”Perfect storm”
Page 49
- 20 40 60 80 100 120 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 STRICT FOCUS ON COSTFAROE ISLANDS - FRESHWATER 49 Strond ramp-up cost & low volumeSmolt Cost (DKK/kg)Average smolt size(g) 100 150 200 250 300 350 400 450 500 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Increased efficiency drives cost pr. smolt down• Cost spiked in 2022 (low volume, Strond ramp-up)• Capacity utilisation increased significantly• Strong cost control in 2024 and into 2025• Slight cost increase ultimo 2025 due to lower volumeAverage weight approaching 500g• Steady increase in smolt weight• 2024 ended at 410g • YTD 2025 at 456g• Focus on delivering large and high-quality smolt to marineLow volume
Page 50
20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 50 2023 Cost increases• P&L effect from feed cost increase in 2022• Low harvest weight adding to cost / kg2024 Initial cost increases• Costs ramping up new vessel, Bakkafossur• Cost dropping in 2025 due to increased efficiencyCost dropping mid 2024 into 2025 • Lower feed cost• Efficient operation:•Increased harvest weight•Strong biology•Efficient use of resourcesFeed cost impactNew vessel +/- 1 DKK per KGRingside cost (DKK/kg)9-12 months lag from cost changes to impact on harvested fish STRICT FOCUS ON COSTFAROE ISLANDS - FARMING
Page 51
- 50 100 150 200 250 300 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 - 50 100 150 200 250 300 350 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 STRICT FOCUS ON COSTSCOTLAND - FRESHWATER 51 Challenging ramp-up of Applecross – improving in 2025• Low-capacity utilization at Applecross impacting cost/kg• Released smolt carrying high costs• Improved results in 2025• Focus on stability and produce large high-quality smolt for marineApplecross approaching 250g target• 2024 was challenging and below target• Big jump in 2025 towards the target• Applecross has capacity of 14-16m smolt at 250g annually Cost per released smolt (DKK/kg)Average smolt size(g)Applecross expansion – ramp upApplecross Q1 2025 = 232g
Page 52
- 40,000 80,000 120,000 160,000 200,000 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 STRICT FOCUS ON COSTSCOTLAND - FARMING 52 Ringside cost relatively stable since start of 2024• Considerably higher cost than the Faroes• Volume needed to drive down cost• Mean weight significantly improved• Cost spikes due to volume variations• 9-12 months lag from cost changes to impact on harvested fishRingside cost (DKK/kg)Exceptional Mortality (DKK/KG)De-risking strategy - 10.00 20.00 30.00 40.00 50.00 60.00 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 De-risking strategy to improve biology• Harvest profile heavy in H1• Keep only the strongest fish in the water and at the best sites, during the summer period• Mortality significantly reduced vs prior years
Page 53
Bakkafrost GroupBakkafrost – Faroe IslandsBakkafrost - Scotland-30.00-20.00-10.000.0010.0020.0030.0040.0050.0060.002011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FINANCIAL PERFORMANCETRACK RECORD OF STRONG MARGINS 53Norwegian listed peers:- Mowi- Salmar- Grieg Seafood- Lerøy (Excl. Whitefish)Operational EBIT/kg benchmark 2011-2024 (all-inclusive in NOK) Source: Infront, Bakkafrost
Page 54
0%5%10%15%20%25%30%35%2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030BakkafrostPeer group* avg. HIGH CAPEX PAST 10 YEARS TO BUILD CAPACITY FOR GROWTHBAKKAFROST CAPEX = 18% OF SALES SINCE 2025 VS 8% FOR PEERS 54 Capex to SalesSource: Infront, Bakkafrost * Mowi, Salmar, Grieg Seafood, Austevoll, Lerøy (Excl. Whitefish)Peer group*Avg. 18% since 2015Avg. 9% since 2015Bakkafrost Capex• Higher level since 2015 of around 18% of sales (peer group 9%)• Lower capex intensity in 2026-2030 of 9-10% of sales9-10%
Page 55
RETURNS HAVE BEEN LOWER WHILE INVESTING IN GROWTHROCE DEPRESSED DURING HIGH-INTENSITY CAPEX PERIOD FOR SCOTTISH TURNAROUND AND FAROESE GROWTH 55 High-intensity capex since 2015•Faroese growth•Turnaround of ScotlandHistoric volume increase not sufficient to avoid negative impact on ROCEExpect higher returns in 2026-2030 as harvest volumes increaseROCESource: Infront, Bakkafrost-30%-20%-10%0%10%20%30%40%50%2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Peer group*Peer group*AverageBakkafrost GroupHarvest6 DKK/KG 10 DKK/KG97kt110kt145kt162ktHigh Capex IntensityExpect higherreturns as volumeincrease* Mowi, Salmar, Grieg Seafood, Austevoll, Lerøy (Excl. Whitefish)
Page 56
FINANCING AND CAPITAL STRUCTURESTRONG FINANCIAL POSITION WITH LOW DEBT AND HIGH EQUITY RATIO 56NIBD and available funding(mDKK)Financing• Sustainability linked bank facilities of EUR 700 million• Accordion of EUR 150 million• Maturity in Q1 2029Equity RatioSource: InfrontNet Debt/EBITDASource: Infront 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 NIDBAvailable fundingIncl. accordion20%30%40%50%60%70%80%2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Bakkafrost P/FAverage - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.02015 2016 2017 2018 2019 2020 2021 2022 2023 2024BakkafrostPeer group* avg. KPI’s•Survivability •Feed Conversion Ratio•Own production of renewable energyCovenants•Equity Ratio >35% •Interest Cover 2:1
Page 57
DIVIDENDPOLICY UNCHANGED 57 99% 19% 40% 49% 49% 46% 50% 50% 50% 0% 59% 50% 53% 50%50%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3.91 1.00 0.02 5.09 6.00 8.25 8.70 10.50 8.25 0.00 3.65 5.14 10.00 8.708.442010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Dividend PolicyCompetitive return through:DividendsIncrease in the value of the equityGenerally, Bakkafrost shall pay a dividend to its shareholdersLong-term goal: 30–50% of adjusted EPS shall be paid out as a dividendDividend per share(DKK)Dividend per share(% of adj. EPS)
Page 58
58Break
Page 59
59Operational UpdateFaroe Islands Bakkafrost’s biogas plant, Förka
Page 60
HAVSBRÚN, FOF – PREPARING FOR FUTURE GROWTH AND FLEXIBILITY 60 Storage tunnels 24.000m2SfaSalmon meal & oilFishmeal & oilStorage tunnels 24.000 m2faFish oil storage 28.000 m3faFish feed
Page 61
PREPARING FOR FUTURECAPACITY 61 Storage tunnels 40.000 tFeed production line 3 130.000 t/yearMeal storage 3.500 tFishmeal & oil capasity 2.500 t fish/dayaFishfeedCapasity 600 t/dayLine 1&2 150.000 t/yFish oil storage 32.000 taStorage tunnels 40.000 t 10.000 m2 area & 300 m quay site10 new oil tanks3250 m3Sfa8 new silos12.000 ta Feed Production Line4 +130.000 t/yearFishfeed storage 15.000 taNew fishmeal & oil plant +1.500 ton/daya
Page 62
PREPARING FOR THE FUTURE 62
Page 63
RAW MATERIAL SOURCING FOR FISH MEAL AND OIL 63 Raw material sourcing 1966 – 2025
Page 64
64 ICES ADVICE ON BLUE WHITING FISHERY
Page 65
HAVSBRÚN'S FEED SALES FROM 1981 TO 2030 65 05010015020025081828384858687888990919293949596979899OOO1O2O3O4O5O6O7O8O910111213141516171819202122232425 e26 e27 e28 e29 e30 e 1,000 tonnesDomesticExport
Page 66
65%34%25%20%18%15%12%39%24%32%17%12%11%10%10%14%22%36%37%37%40%41%20%13%18%19%20%20%14%10%11%8%11%11% 11%13%12% 1990 2000 2010 2012 2013 2016 2020 BakkafrostFish mealFishoilVeg. proteinVeg. oilCarbohydratsMicro ingrediensOther NORWEGIAN SALMON DIETS VS BAKKAFROST SALMON DIETS(NOFIMA) Inclusion
Page 67
NORWEGIAN SALMON DIETS VS BAKKAFROST SALMON DIETS(NOFIMA)Plant-based feedBakkafrost feed÷CO2÷Water÷Land÷Deforrestation÷Biodiversity (sourcing)÷FCR÷Fish welfare -mort.÷Product Quality÷Local Biodiversity Risk÷Growth rate÷Feed price/ (kg feed)÷Feed cost / (kg salmon) √√√√√√√√√√√√ HEALTHY LIVING Inclusion
Page 68
STRONG CORRELATION BETWEEN INGREDIENTS IN FEED AND CO2 FOOTPRINTMARINE-BASED FEED HAS SIGNIFICANTLY LOWER CO2 FOOTPRINT R² = 0.86912.0 3.0 40 45 50 55 60 65 70 75 80Kg CO2 eq.% plant ingredient inclusionPlant-based diet Havsbrún project 2021 Marine-based standard diet Havsbrún Aas et al. 2019Ytrestøyl et al. 2014Ytrestøyl et al. 2014, 2015Ytrestøyl et al. 2011Winther et al. 2017Aas et al. 2022+ 25%
Page 69
69 FLEXIBILITY FOR NEW RECIPES
Page 70
RESEARCH & DEVELOPMENT – OUR QUALITY PILLARCONTINOUS R&D IS A PART OF OUR DAILY OPERATION
Page 71
6 Different types of fishmeal- 4 types of Blue whiting meal- 2 types of trimming mealFeed production- 6 types of feed produced with these types of fishmealGrowth and digestibility trial-The types of feed were fed to triplicate groups of 30 fish- Seawater (33 ppt)- Feed trial 6 weeks- Fish size at start 500 gChemical analysis - Protein- Soluble proteins- Amino acids- Fat- Fatty acids- Minerals etc.Chemical analysis- 6 feed types produced with these types of fishmeal Analysis- Growth- Feed conversion ratio- Digestibility- Faecal stability EXAMPLE: FISHMEAL QUALITY - GROWTH & DIGESTIBILITY FEED TRIALTRIAL OVERVIEW
Page 72
70% 70% 70% 70% 70% 70%30% 30% 30% 30% 30% 30%Svk TVN 88 Svk TVN 119 Svk TVN 147 Svk u/flash TVN 145 HB-slógv TVN 154 HB-slógv TVN 251Feeds Different TVN content in each mealbatch Feed IngredientsFishmeal EXAMPLE: FISH MEAL QUALITY - GROWTH & DIGESTIBILITY FEED TRIALSAME INCLUSION OF FISHMEAL IN TRIALED FEED FORMULATIONS Glossary:SVK = Blue whitingSlógv = Trimming TVN = Total volatile nitrogen
Page 73
1.091.081.061.051.041.01y = -0.0151x + 1.108R² = 0.967Svk TVN 88 Svk TVN 119 Svk TVN 147 Svk u/flash TVN 145 HB-slógv TVN 154 HB-slógv TVN 251%/dayFeeds Specific Growth RateEXAMPLE: FISH MEAL QUALITY - GROWTH & DIGESTIBILITY FEED TRIALDIFFERENT SPECIFIC GROWTH RATE (SGR)
Page 74
0.850.870.880.920.930.91Svk TVN 88 Svk TVN 119 Svk TVN 147 Svk u/flash TVN 145 HB-slógv TVN 154 HB-slógv TVN 251Feeds Feed Conversion RatioEXAMPLE: FISH MEAL QUALITY - GROWTH & DIGESTIBILITY FEED TRIALDIFFERENT FEED CONVERSION RATIO
Page 75
01000200030004000500060007000 0 50 100 150 200 250 300 350Weight, gDays Estimated growth Svk TVN 88Svk TVN 119Svk TVN 147Svk u/flash TVN 145HB-slógv TVN 154HB-slógv TVN 251 EXAMPLE: FISH MEAL QUALITY - GROWTH & DIGESTIBILITY FEED TRIALESTIMATED GROWTH WITH DIFFERENT FISHMEAL QUALITIES
Page 76
LICENSE TO OPERATE & SOCIAL RESPONSIBILITY HavsbrúnOdour Control Strategy76
Page 77
HAVSBRÚN 1967
Page 78
Page 78 HAVSBRÚN 10 JUNE 2025
Page 79
FISH MEAL & FEED PRODUCTION AT THE SAME TIME ODOUR DISPERSION PRIOR TO PROJECT Page 79
Page 80
FISH MEAL AND FEED PRODUCING AT THE SAME TIMEL1&L2 AIR, CLEANED IN SCRUBBER 80
Page 81
FISH MEAL AND FEED PRODUCING AT THE SAME TIME ALL AIR CLEANED IN SCRUBBER'S 81
Page 82
HEILSAN AV ENNIVEGIHey Odd Vil bara vísa mítt takksemi, at tit hava betra um luktin í Fuglafirði. Er so fantastiskta deiligt fyri okkum her norðuri. So praktfult at kunna njóta tí frísku luftinaHeilsa øllum sum hava verið við í arbeiðinum frá einum vælnøgdum borgara.Vinarliga, xxxxx82
Page 83
83 OPERATIONAL UPDATE FRESHWATER, FAROE ISLANDS Strond hatchery, Faroe Islands
Page 84
OPERATIONAL UPDATE - FRESHWATER, FAROE ISLANDSINDUSTRY LEADER IN LARGE SMOLT 84 Smolt released(average weight - grams) Source: Kontali, Bakkafrost 10 years ahead in large smolt• Bakkafrost (Faroes) increasing towards 500g• Bakkafrost (Faroes) YTD 2025 of 456gBakkafrost Scotland dramatically increasing smolt weights in 2025• Bakkafrost Scotland targeting average weight of +200g in 2025, increasing further to 250g subsequent years• Has been “worst in class”NorwayFaroe IslandsScotlandBakkafrost FOBakkafrost SCT0100200300400500600 2013G 2014G 2015G 2016G 2017G 2018G 2019G 2020G 2021G 2022G 2023G 2024GE Chile North America Iceland
Page 85
85 OPERATIONAL UPDATE – FRESHWATER, FAROE ISLANDSAHEAD COMES SIGNIFICANT VOLUME INCREASE AFTER SEVERAL HATCHERY EXPANSIONSNumber of released smolt (million) 18.520.224.024.405101520253020182019202020212022202320242025E2026E2027E2028E2029E2030EAvailable expanded production capacity– last 6 yrs (m3 & tonnes)Average weight (g)0100200300400500600 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 - 20,000 40,000 60,000 80,000 100,000 120,0002018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E 2029E 2030E Capacity - Tonnes Capacity - M3S-26 Skálavík*S-24 Strond*S-16 GlyvradalurS-03 NorðtoftirS-21 ViðareiðiBaseCapacity - tonnes*Strond & Skálavík new hatcheries Smolt production scaling up• 2024 best year yet of 17m smolt release• Big growth in coming years (smolt release):• 18.5m smolt to be released in 2025, increasing to 24.4m in 2030• Significant advances made on increasing the smolt quality
Page 86
86 OPERATIONAL UPDATE – FRESHWATER, FAROE ISLANDSTHE IMPORTANCE OF HIGH-QUALITY SMOLT - A RECENT CASE STUDY FROM MARINE SITE KUNOYARNESHigh-qualityReduced-quality268285 1 2 Smolt weight (g)5.24.4 1 2 Harvest size (kg)380396 1 2 Time to harvest(no of days)3.157.00 1 2 Mortality rate (biomass-%)5.03.3 1 2 Harvest yieldper input-smolt(kg)1.071.13 1 2 Feed ConvertionRatiobFCR
Page 87
87 OPERATIONAL UPDATE – FRESHWATER, FAROE ISLANDSADVANCEMENTS IN RAMPING UP NEW HATCHERY CAPACITYStrond hatchery upscale• Around six years to full utilisation• Strategic decisions for farming utilisation• Valuable learnings for future hatcheriesGlyvradalur utilsation significantly improved• Strond experience is invaluable• In-house expertiseViðareiði and Norðtoftir more minor expansions• Quick to utilise extra capacity• Process already in placeS-24 Strond(operational in 2019)S-16 Glyvradalur(operational in 2023)S-21 Viðareiði(operational in 2023)S-03 Norðtoftir(operational in 2023)0%20%40%60%80%100%Start ofOperationYear 1 Year 2 Year 3 Year 4 Year 5 Year 6Early release of smolt, resulting in lower utilisationCapacity Utilisation* ramp-up pace increasing for each new hatchery* Capacity Utilisation is the share of the total facility being in normal operation. This is not equal to the full production potential of the facility, which is achieved throughfurther optimisation of the operation.
Page 88
88 OPERATIONAL UPDATEFARMING, FAROE ISLANDS Fuglafjørður, Faroe Islands
Page 89
89 OPERATIONAL UPDATE – FARMING, FAROE ISLANDSSITE OVERVIEW AND FOCUS AREAS Operating on 21 farming sitesThree farming regions:• Farming North• Farming Vest• Farming SouthActively pursuing additional farming sites within existing licsenses, enabled by new farming technology• Targeting 5 new sites, expecting 2 before 2030Focus on optimisation of current sites• Increase stocking• Shorten production cycle• Sustainable farming
Page 90
90 OPERATIONAL UPDATE – FARMING, FAROE ISLANDSNEW DUAL FRESHWATER TREATMENT CAPABILITIES ARE GAME-CHANGINGConsiderable improvement on treatment:Consistent effect well above 90%Mortality is significantly lower than other treatmentsAverage harvest increase approximately 1KG Record low sea lice:FW treatment is essentialSea lice well below the LimitSea Lice, Faroe Islands (#ad.fem)0.00%0.25%0.50%0.75%1.00%1.25%1.50%1.75%2.00%2.25%2.50%010,00020,00030,00040,00050,00060,00070,000 Mortality - % Biomass Treated - TonnageMechanical - TreatmentFW - TreatmentMechanical - MortalityFW - MortalityTreatment methods vs. mortality 0.000.200.400.600.801.00jan feb mar apr maj jun jul aug sep okt nov dec2025Sea Lice limit20242023
Page 91
91 OPERATIONAL UPDATE – FARMING, FAROE ISLANDSCONTINUOUS IMPROVEMENT IN FEED CONVERSION AND GROWTHStrong Feed Conversion Factor (bFCR)• Continuous positive trend the last 20 generations• 2019G particularly strong at 1.05• Focus of getting back to 2019G level• Among top performers in the industryGrowth is increasing (measured as TGC)• Continuos positive trend the last 20 generations• 2021 & 2024G best performers at >3.3 TGC• >3.10 TGC for the past six generations3.34 2.52.62.72.82.93.03.13.23.33.43.5bFCR per generationTGC per generation1.11.01.11.21.31.41.5
Page 92
92 OPERATIONAL UPDATE – FARMING, FAROE ISLANDSMORTALITY TRENDING DOWN – MORE LARGE FISHMortality back to previous achievements• Challenging previous generations• Weather caused incidents • New technology for seal protection• Bakkafossur freshwater treatmentHarvest size back to >5kg HOG• Past three generations under target• Bakkafossur essential with freshwater treatment• Less mortality and higher mean weight Average mortality – harvested full generation (%)Harvest size (kg HOG)10.89%0%5%10%15%20%25%30%35% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 5.1 kg 3.5 4.0 4.5 5.0 5.5 6.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD
Page 93
93 OPERATIONAL UPDATE – FARMING, FAROE ISLANDSIMPROVED SMOLT PERIOD DESPITE SHORTER PRODUCTION CYCLESignificant yield-per-smolt improvement• Healthy smolt strategy• Strong feed programme• Freshwater treatmentProduction cycle down 5 months since 2018• Essential to achieve growth plan• Healthy smolt strategy paying off• Target 12 month production cycleYield-per-smolt (kg WFE) Production Cycle (Average months)5.52 kg4.004.254.504.755.005.255.505.756.002018 2019 2020 2021 2022 2023 2024 2025-Q113.61 months12131415161718192018 2019 2020 2021 2022 2023 2024 2025 YTD
Page 94
OPERATIONAL UPDATE - FARMING SUPPORT VESSELS (FSV)”THE OLD FLEET” 94 Bakkafossur*Our first vesselOur second vessel*In the Jacobsen family
Page 95
Service VesselsHarvestSmolt Transport 95 OPERATIONAL UPDATE - FARMING SUPPORT VESSELS (FSV)OVERVIEW OF BAKKAFROST’S OWN FLEET OF 13 LARGE VESSELSVíkingurStígabrúgvBakkanesMartinVesthav Hans á BakkaRólandBakkabrúgvBakkafossur + 2 leased vesselsoperating in Scotland+ 2 leased vesselsoperating in Scotland
Page 96
96VIDEO OF DUAL FRESHWATER TREATMENT WITH BAKKAFOSSUR
Page 97
97 OPERATIONAL UPDATE - FARMING SUPPORT VESSELS (FSV)BAKKAFOSSUR – DUAL FRESHWATER TREATMENT Image credits: Marni Olsen – Knud E. Hansen Bakkafossur dimensions:108m long / 23m wide10.000m3 Live Fish Carrier 4 x 1.750m3 tanks = 7.000m3 for LFC3.000m3 tanks for freshwater6.000m3 freshwater production capacity / 24h 4.04.55.05.56.0 Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25 Average Weight (kg HOG)Bakkafossur operational 0.200.300.400.500.600.70 U2017 U2018 U2019 U2020 U2021 U2022 U2023 U2024 Adult female lice - ultimo calendar yearBakkafossur operational 0.0%0.5%1.0%1.5%2.0%2.5% 2020 2021 2022 2023 2024 2025 Treatment mortalityBakkafossur operational
Page 98
98 OPERATIONAL UPDATE - FARMING SUPPORT VESSELS (FSV)DUAL FRESHWATER TREATMENT IN SCOTLAND HAVE SIMILAR RESULTS051015202530Similar results as in the Faroe Island• All-time low sea lice levels• Low treatment mortality• Positive for increasing average weight of harvested fishFreshwater treatment is significant to fish health• Significantly improved gill health in Scotland•RPL scores improved dramatically• Dual freshwater treatments has improved results and better fish health than other treatmentsNodedicatedfreshwater treatment vessel1stdual freshwatertreatment vessel operational2nddual freshwatertreatment vessel operationalGill-health/AHD measured as RPL score(millions)
Page 99
99 OPERATIONAL UPDATE - FARMING SUPPORT VESSELS (FSV)CONVERSION OF FSV’S TO SMOLT TRANSFER1,215 1,215 1,215 2,215 2,215 2,215 3,415 3,415 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000Q1 2024 Q2 2024 Q3 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Post Q2 2025CAPACITY - M385 – 100KT biomass155 – 175KT biomass240 – 275KT biomassPre conversion+ FSV Martin+ FSV BakkanesImproved flexibility and early indicators of improved stocking results Smolt transport - vessel capacity(m3)MartinBakkanes
Page 100
100 FACILITY OVERVIEW – HARVEST & PROCESSINGGlyvrarVágurCairndowMarybank** Wayne NJ - USA Munkebo - Denmark Harvest:• 250 T/day – 1 shift• 500 T/day – 2 shifts*VAP:• 100T/day – 1 shift• 200T/day – 2 shifts VAP:• 20T/day – 1 shift• 40T/day – 2 shiftsProcessing:• 60k/day – 1 shift• 120k/day – 2 shiftsHarvest:• 80 T/day – 1 shift• 160 T/day – 2 shifts*Harvest:• 100 T/day – 1 shift• 200 T/day – 2 shifts*Harvest:• 70 T/day – 1 shift**• 140 T/day – 2 shifts**Harvest & VAPHarvestHarvestHarvestVAPCan processing*2 shifts requires adjustments and additional capex** Marybank is currently not operational
Page 101
101Operational UpdateScotland Kyles Vuia, Scotland
Page 102
102 OPERATIONAL UPDATE - SCOTLANDHIGH-LEVEL TURNAROUND PLANQuality smolt(large & healthy)Full utilisationof assets Cost controlProductionflexibility Critical Past Current FutureSwim through3rdparty smolt< 100g smolt > 200g smolt10m smolt BUT lost year100% RAS end 202616m smolt by 2027> 200g smoltResized harvestTreatment savingsMarket tested costsStreamlined sitesReplaced assetsBUT short on smolt Long cyclesHarvest capacity Costly treatmentSmall sitesOld assetsLimited treatment Benchmarked to peerEconomies of scaleLarge smolt < cost2 processing sitesLimited VAPNo freezing1 processing siteCapacity constraintNo VAP/freezingModern, flexible harvest/VAP facility BUT location challengeAll sites fully stockedQuality large smoltShorter cyclesCompetitiveness Past Current Future
Page 103
103 Renewable energy26km private wireApplecross RAS FRESHWATER SCOTLAND B2D1C2A2A1C1B1D2E1E2
Page 104
103 92 106 241 275 275 500 0100200300400500600 20192020202120222023202420252026202720282029203020312032104 OPERATIONAL UPDATE - SCOTLANDFRESHWATER SMOLT CAPACITY 11m 14m 16mBarvasclosed Harris LochsclosedAmhuinnsuidheclosedGeocrabbroodstockTullichclosedCouldoran 1,166m3RAS 2 futureKLM 1,150 m3Applecross 29,620m3, complete??? 2019CurrentFuture
Page 105
6.09.012.916.016.316.32024 2025 2026 2027 2028 2029 A/B/C2 +2,100 m3 105 OPERATIONAL UPDATE – SCOTLANDFRESHWATER – APPLECROSS SMOLT PRODUCTIONE1 + 9,200 m3E2 + 9,200 m31+ year delay5 quarters to full output • Technical design issues & construction delays pushed smolt plan back more than 12 months• Construction due to complete Q4 2025• Normal freshwater cycle is around 5 quarters from ova input to smolt output• Smolt output at capacity from H2 2027Smolt transfer (million)
Page 106
106 FARMING SCOTLAND
Page 107
**MW: Min / Max small smolt 82 *MW: Applecross large smolt - 200 400 600 800 1,000 1,200 1,400 1,600 1,8001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21107 OPERATIONAL UPDATE - SCOTLANDEARLY DATAPOINTS ON LARGE-SMOLT Significant growth performance after 21 weeks 1stbatch of large smolt input in Jan 2025• 932k fish input at 180g MW• Growth very strong versus previous inputs in same site & comparative period – both vs Bakkafrost smolt and peers • Double the MW at same point in cycle • Too early in cycle to comment on mortality, TGC or bFCRMean weight (grams)
Page 108
OPERATIONAL UPDATE –FARMING SCOTLAND 108 Mortality Tonnes (by week) [tonnes]Mean weight kg (at sea) [kg]Gill health (RPL) Lice(LEP adult female)Jellyfish(count) Lactate (stress/gill function indicator) 1.00 1.50 2.00 2.50 3.00 - 2,000,000 4,000,000 6,000,000 8,000,000 - 50 100 150 200 250 300 350 3.0 4.0 5.0 6.0 7.0 8.0 9.0 - 100 200 300 400 500 600 700 Large fish, end of cycle, restricted harvest capacity - 0.20 0.40 0.60 0.80 1.00 Within COGP, vet non-treatment decision pre imminent harvest202420232025
Page 109
3.3 kg22.533.544.552019 2020 2021 2022 2023 2024 FutureOPERATIONAL UPDATE - SCOTLANDDERISKING AND RAMP-UPSmolt yield WFE – Kontali(Scotland 2024e)Yield-per-smolt (kg WFE) De-risking & transition • Pre-2023 – small smolt, long cycles (two summers) = environmental & secondary challenges• 2024 de-risking – removed second summer, risk-basedstocking & vaccination strategy• Treatment evolution (freshwater FLS)• BUT constrained by small, challenged smoltStabalise, ramp-up and grow• 2025 – transition to 200g+ smolt, limited de-risking• 2026 - 100% production of 200g+ smolt, 90% of biomassfrom large smolt• Future – stable production of 200g+ smolt, opportunity to move to 500gDe-riskStabiliseGrowChallenge
Page 110
110 HARVEST SCOTLAND
Page 111
111 OPERATIONAL UPDATE - SCOTLANDHARVEST & PROCESSINGPASTMaximise utilisation & efficiency• One site• Potential flexibility from shifts • Some capacity opportunitiesBut challenges remain…Growth & flexibility • One central location • Capacity 250T/shift • Direct sea access• Product flexibility• Commence build within 5 yrs• Actively assessing sites Cairndow65T/shift capacityMarybank50T/shift capacityCairndow100T/shift capacityMarybankMothballed Under invested & old technology Challenges:• Scale • 2 sites• Locations• Harvest balance CURRENTFUTURE
Page 112
112Sustainability
Page 113
SALMON IS THE SUSTAINABLE PROTEIN CHOICETRANSPARENT INSIGHT INTO BAKKAFROST’S CLIMATE IMPACT FROM FEED TO FOOD Low use of FreshwaterEfficient Feed ConversionLow DeforrestationRiskLife CycleAssessmentLow Land useLow CarbonFootprintLow BiodiversityRiskHigh edibleyield
Page 114
GROWING WHILE REDUCING OUR EMISSIONSWE AIM TO DECOUPLE CARBON EMISSIONS FROM OUR PRODUCTION Bakkafrost GHG commitments:By 2030 reduce the scope 1 & 2 CO2 footprint by 50%By 2030 reduce the scope 3 CO2 footprint by 52%
Page 115
115“A vital step in transforming Bakkafrost’s operations for a low-carbon future.” DELIVERING ON OUR CLIMATE STRATEGYFROM 2030 SBTI COMMITMENTS TO NET-ZERO BY 2050 Group-wideClimate Transition Plan• Alignment with ESRS • Charts net-zero pathway• Detailed emissions model• Prioritised decarbonisation levers• Linked to capital planningApplecross hatchery, Scotland• 100% renewable energy• Converts sludge to biocharDecarbFaroe Initiative• Carbon Capture pilot in basalt rockEysturlund Wind Farm(Pending approval)• 100 MWFlagship DecarbonisationProjects 203020402050
Page 116
116Technology & DigitalisationBakkafrost’s biogas plant, Förka
Page 117
117 TECHNOLOGY & DIGITALISATIONBAKKAFROST HAS A HIGHLY DIGITALISED AND AUTOMATED VALUE CHAINAutomations and AI• Central feeding stations powered by AI and machine learning• Testing AI in hatcheries to improve energy efficiency and biology optimization• Real-time monitoring devices in all farming pens• Sea lice simulation models for early detection and treatments• ROV’s and integrated automation with robots, sensors etc.Strong in-house capabilities• AI-empowered systems development ensures rapid development• Operations Technology team developing cost-efficient and advanced technological solutions • Vendor-independent and ISO 27001 certified• 24/7/365 surveillance and emergency response readiness• Strategic focus on owning and developing key technologies
Page 118
118 TECHNOLOGY & DIGITALISATIONCENTRALISING FEEDING TO DRIVE PERFORMANCE AND EFFICIENCY #Feeding Cenrtal(number inside = number of operated sites)
Page 119
119 • High-quality data is essential for AI and machine learning• Bakkafrost owns huge amounts of structuredhigh-quality data across the entire value chain• Advanced SCADA systems enable real-time data collection and process control• Data is stored in secure, redundant on-premisemain data centers• With our latest project ”AquaMind”, AI is appliedon top of this to strenghten our competitive advantage. COMPETITIVE ADVANTAGEAITECHNOLOGY & DIGITALISATIONLEVERAGING ON DATA AND AI AS THE WORLDS MOST VERTICALLY INTEGRATED SALMON FARMER
Page 120
One CompanyOne CultureOne Team
Page 121
121
Page 122
1.64 0.13 9.33 10.91 6.01 2.91 Faroes 2024 Faroes 2025 YTD Scotland 2024 Scotland 2025 YTDBrand premiumCombined premiumSize premium22 51 86 91 2010 2015 2020 2024kt (HOG)WE DELIVER ON OUR MISSIONGROWING PRODUCTION AND SOLID PRICE ACHIEVEMENT 122 SalmonFish feedFish mealFish oil60 79 112 140 2010 2015 2020 2024kt25 49 61 66 2010 2015 2020 2024kt10 8 10 11 2010 2015 2020 2024ktSource: Kontali, Fishpool, BakkafrostBakkafrost price premium vs. Norwegian Ex-Works* prices(NOK/kg)• Salmon harvest more than quadrupled since listing• Sale of fish feed and meal almost tripled• Achieving a solid price premium for our salmon* Nasdaq less freight& sales commission