Bakkafrost P/f · OSL:BAKKA
Bakkafrost P/f — Bakkafrost — Q1 2025 Earnings Presentation
50 slides from Bakkafrost P/f's earnings presentation, May 19, 2025
Slide 1: Q1 2025 Bakkafrost Group
Q1 2025 BAKKAFROST GROUP Oslo May 19th 2025
Slide 2: Disclaimer
HEALTHY LIVING 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
Slide 3: Summary of Q1 2025
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONS OUTLOOK APPENDIX
Slide 4: Summary Q1 2025 (Q1 2024)
HEALTHY LIVING SUMMARY Q1 2025 (Q1 2024) Revenues and Revenue of DKK 1,899 million (DKK 2,206 million) Operational EBIT Operational EBIT* of DKK 505 million (DKK 710 million) Harvest in the Faroe Islands: 18,914 tgw (14,294 tgw) Harvest in Scotland: 6,286 tgw (7,263 tgw) Feed sales: 31,338
Slide 5: Markets & Sales
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONS OUTLOOK APPENDIX
Slide 6: Global Markets - Prices
GLOBAL MARKETS - PRICES HEALTHY LIVING STRONG PRICES IN JANUARY – LOW IN FEBRUARY AND MARCH Average spot prices decreased YoY, increased QoQ Spot prices (NASDAQ/Sisalmoni) on superior 4-5 [NOK/kg HOG] 150.00 Q1 Q2 Q3 Q4 Superior 4-5kg (NOK/KG) 130.00 110.00 y/y: 110.92 -16.4% 92.73 (Q1 2024) -18.19
Slide 7: Global Markets - Sold Volume
GLOBAL MARKETS – SOLD VOLUME HEALTHY LIVING VOLUMES INCREASED BY 5% EU/UK: 6% consumption increase Salmon markets, sold quantity (head on gutted weight) Significantly below European supply increase (13%) Estimated volumes Change Estimated volumes FY comparison Markets Q1 2025 E Q1 2024 Volume % FY
Slide 8: Global Harvest
GLOBAL HARVEST HEALTHY LIVING HARVEST INCREASED BY 8% - SUPPLY TO THE MARKETS BY 5% 8% increase in global harvest volumes Supply Development Q1 2025 Q1 2024 Change % Strong growth in Europe Norway 308 273 12.6 % Limited growth in Americas UK 38 35 9.9 % Faroes 26 21 20.3 % Iceland 11 10 11.9 % I
Slide 9: Finance
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONS OUTLOOK APPENDIX Glyvrar, Faroe Islands
Slide 10: Group Profit and Loss
GROUP PROFIT AND LOSS HEALTHY LIVING LOWER REVENUE AND OPERATIONAL EBIT Q1 2024 Q1 2025 (DKK million) Q1 25 Q1 24 Revenue (mDKK) Operating revenue 1,899 2,206 2,206 -307 1,899 Operational EBITDA* 694 879 Operational EBIT* 505 710 Operational EBIT (mDKK) Fair value adjustment of biological assets -37
Slide 11: Operational EBIT and Adjusted Earnings per Share
HEALTHY LIVING OPERATIONAL EBIT* AND ADJUSTED EARNINGS PER SHARE** 710 587 565 505 407 418 376 388 353 356 325 Operational EBIT* 269 280 224 (mDKK) 173 120 71 2021 2022 2023 2024 2025 YTD 822 1,705 1,543 1,551 505 7.66 7.19 6.77 4.80 4.82 4.37 4.39 4.00 3.79 Adjusted EPS** 3.43 3.56 3.37 2.95 2.93 (
Slide 12: Balance Sheet
HEALTHY LIVING BALANCE SHEET Headlines (mDKK) (DKK million) Q1 25 End 2024 End 2024 Q1 2025 Intangible assets 4,516 4,518 Property, plant and equipment 6,873 6,733 PPE: 6,733 140 6,873 Right of use assets 987 321 Financial assets 322 334 Biological assets: 3,139* -418 2,721* Deferred tax assets 588
Slide 13: Cash Flow
HEALTHY LIVING CASH FLOW Q1 2024 Q1 2025 (DKK million) Q1 25 Q1 24 Cash flow, operations (mDKK) Cash flow from operations 590 676 676 -86 590 Cash flow from investments -304 -238 Cash flow from financing -516 -278 Net change in cash -230 161 Cash flow, investments (mDKK) -238 -66 -304 Cash at the en
Slide 14: Net Interest-Bearing Debt (NIBD)
NET INTEREST-BEARING DEBT (NIBD) HEALTHY LIVING NIBD DECREASED DURING Q1 2025 NIBD was increased by: Development in NIBD in DKK millions 3,500 304 • Net investments (mDKK 304) 3,000 -21 3,000 2,788 -495 2,500 NIBD was decreased by: 2,000 • Operating Activities (mDKK -495) 1,500 • Change in working c
Slide 15: Operations
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONS OUTLOOK APPENDIX Scotland
Slide 16: FOF (Fishmeal, Oil and Feed)
FOF (FISHMEAL, OIL AND FEED) HEALTHY LIVING STRONG FEED SALES – REDUCED SALES OF FISHMEAL AND OIL Q/Q Q1 Q1 Raw material sourcing vs. Feed sale (tonnes) Volumes change 2025 2024 200,000 50,000 Marine raw material sourced -20% 109,502 136,874 40,000 Feed sold (tonnes)* 16% 31,338 27,046 150,000 Fishm
Slide 17: Freshwater – Faroe Islands
FRESHWATER – FAROE ISLANDS HEALTHY LIVING STRONG QUARTER WITH INCREASING SMOLT TRANSFER Q/Q Q1 Q1 Volumes change 2025 2024 Good capacity in hatcheries Transfered number of smolt (million) 52% 3.2 2.1 Average weight (g) 3% 421 410 Strond Glyvradal Norðtoftir Viðareiði Margin Operational EBIT (mDKK) 1
Slide 18: Freshwater – Scotland
FRESHWATER – SCOTLAND HEALTHY LIVING RAMP UP AT APPLECROSS, DELIVERED SMOLT AVERAGING 232G IN Q1 2025 Q/Q Q1 Q1 Volumes change 2025 2024 Applecross hatchery: Transferred number of smolt (million) -63% 0.6 1.6 Average smolt weight (total released) (g) 40% 169 121 • Ramping up production Applecross av
Slide 19: Farming – Faroe Islands
FARMING – FAROE ISLANDS HEALTHY LIVING STRONG BIOLOGICAL DEVELOPMENT Q/Q Q1 Q1 Good size on harvested fish Volumes change 2025 2024 Total harvest volume (tgw) 32% 18,914 14,294 Average harvest weight (kg) -7% 5.1 5.4 Operational EBIT reduced by low salmon prices Margin Strong growth YTD 32% above 20
Slide 20: Farming – Scotland
FARMING – SCOTLAND HEALTHY LIVING 44% HIGHER AVERAGE HARVEST WEIGHTS Q/Q Q1 Q1 Volumes Biology continuing to improve change 2025 2024 Total harvest volume (tgw) -13% 6,286 7,263 • All-time high harvest weights averaging 6.7 kg (HOG) Average harvest weight (kg) 44% 6.7 4.7 • Good growth • Good sea li
Slide 21: Services
SERVICES HEALTHY LIVING GOOD RESULTS AND CONTINUED EFFICIENT SEA LICE MITIGATION Q/Q Q1 Q1 Margin change 2025 2024 Services provided: Operational EBIT (mDKK) 44% 38 26 • Fish transportation Operational EBIT/KG (NOK) 26% 2.35 1.87 • Treatments Operational EBIT margin 7% 17% 10% • Farming Support • Ha
Slide 22: Sales & Other
SALES & OTHER HEALTHY LIVING FACING THE MARKET AS “ONE-COMPANY” ENABLED ALL-TIME HIGH SALE FROM SCOTLAND TO US AND CHINA Q/Q Q1 Q1 • 33% increase in ready-to-eat products sold Volumes change 2025 2024 • 14% increase in head-on-gutted products Volume transferred to VAP (tgw) 33% 4,393 3,296 Volume HO
Slide 23: Performance per Region
PERFORMANCE PER REGION HEALTHY LIVING SCOTLAND IMPROVING Faroe Islands* - Operational EBIT (mDKK) * Included a marginal contribution from US, DK, UK and FR Q1 2025 Q1 2024 Faroe Faroe DKK 1,000,000 Scotland Islands* Group Scotland Islands* Group 800 671 Operational EBIT 71 435 505 39 671 710 700 600
Slide 24: Outlook
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONAL UPDATE OUTLOOK APPENDIX Gøtuvík, Faroe Islands
Slide 25: Outlook: Moderate Growth Expected
OUTLOOK HEALTHY LIVING MODERATE GROWTH EXPECTED 2025 supply growth expected to be 6-7% TOTAL HARVEST 1,600 15% Strong 1H growth expected from European origins 1,400 10% 1,200 • Improved yield per smolt vs. 2024 1,000 5% • 2H 2025 expected to be curtailed by license constraints (MAB) and 800 biologic
Slide 26: Outlook: Growing Volume
OUTLOOK HEALTHY LIVING GROWING VOLUME Farming Contracts Harvest [gwt] Faroe Islands Scotland Total • For 2025, Bakkafrost intends to sign contracts covering 2025 plan 77,000 20,000 97,000 around 15-20% of the expected total harvest volumes. Harvest plan 2025 Fishmeal, Oil and Feed 22,500 FO 21,000 1
Slide 27: Appendix
SUMMARY OF Q1 2025 MARKETS & SALES FINANCE OPERATIONAL UPDATE OUTLOOK APPENDIX
Slide 28: CMD2023 - Investing in Sustainable Growth
CMD2023 - INVESTING IN SUSTAINABLE GROWTH HEALTHY LIVING 165,000 TONNES HARVEST IN 2028, FAROE ISLANDS AND SCOTLAND COMBINED 2024-2028 Capex* of DKK 6.3 bn Volumes Faroe Islands Scotland Reprioritising CAPEX (Scotland) will reduce short-term capex: 2024 62,776t 27,880t • Around 300 mDKK less in 2024
Slide 29: CMD2023 ~6.3bn Planned Investments 2024-2028
CMD2023 ~ 6.3BN PLANNED INVESTMENTS 2024-2028 HEALTHY LIVING REDUCE BIOLOGICAL RISK, IMPROVE EFFICIENCY AND INCREASE ORGANIC GROWTH Faroe Islands: 2024-2028 capex plan vs. 2022-2026 capex plan 1,800,000 • Hatchery capacity of 24m smolt at 500g in 2028 1,600,000 • Cost-efficient broodstock (repurposi
Slide 30: Value Chain Insight: Farming Cycles Getting Shorter
VALUE CHAIN INSIGHT HEALTHY LIVING FARMING CYCLES GETTING SHORTER WITH LARGE HIGH-QUALITY SMOLT Large Smolt Strategy - Reduced biological risk - Increased production efficiency - Enables Sustainable Growth Faroes: Currently at 13 months in the sea 410g (2024) 30
Slide 31: Faroe Islands - More Capacity in Hatcheries, Larger Smolts
FAROE ISLANDS - MORE CAPACITY IN HATCHERIES, LARGER SMOLTS HEALTHY LIVING INCREASING SMOLT QUALITY, PRODUCTION VOLUME AND CAPACITY TO 24 MILLION SMOLT @500G Average smolt weight Capacity Skálavík project 2023: 18 million smolt of 500g Glyvradal expansion Norðtoftir expansion Viðareiði expansio
Slide 32: Freshwater – Faroe Islands: New Hatchery at Skálavík
FRESHWATER – FAROE ISLANDS HEALTHY LIVING CONSTRUCTION STARTED OF NEW HATCHERY AT SKÁLAVÍK Existing hatcheries Gjógv Húsar Strond Glyvradal Norðtoftir Viðareiði Construction started of Skálavík hatchery • Same design as Glyvradal and Applecross • 3,500 tonnes capacity • Built in phases to allow earl
Slide 33: CMD2023 - Large Smolt Strategy
CMD2023 - LARGE SMOLT STRATEGY HEALTHY LIVING DELIVERING LARGE HEALTHY SMOLT SMOLT CAPACITY 11m 14-15m 15m RAS 2 design & build Fairlie Hatchery 2 build AP Fairlie – project - 8m smolt at 500g - 32,300m³ capacity Post smolt 2 build AP - 2024: project on hold Post smolt 1 build AP 100% smolt from RAS
Slide 34: The Importance of Robust Smolt
THE IMPORTANCE OF ROBUST SMOLT A RECENT CASE STUDY RINGSIDE COST FROM MARINE SITE- FAROE DEVELOPMENT KUNOYARNES, FAROE ISLANDS VS.ISLANDS SCOTLAND HEALTHY LIVING SCOTTISH COST MORE VOLATILE DUE TO MORTALITY COST. FALLING TREND IN 2024 High-quality Reduced-quality Smolt weight (g) Time to harvest (no
Slide 35: Segment Overview
SEGMENT OVERVIEW HEALTHY LIVING VOLUMES, MARGINS AND KEY RATIOS FOF Freshwater Farming Services Sales & Other Q1 2025: Q1 2025: Q1 2025: Q1 2025: Q1 2025: Revenue = 487M Revenue = 154M Revenue = 1,211M Revenue = 219M Revenue = 2,962M Internal Feed sale = 30,942t Smolt transferred = 3.2M Harvest Volu
Slide 36: Development in Supply and Sold Quantity by Origin
HEALTHY LIVING DEVELOPMENT IN SUPPLY AND SOLD QUANTITY BY ORIGIN Expected supply growth in 2025 Global Supply of Atlantic Salmon (head on gutted – HOG) 2020 2021 2022 2023 2024E 2025E 7% increase in Global supply* Norway 1,226 1,384 1,359 1,330 1,361 1,456 UK 160 179 145 137 170 168 7% increase
Slide 37: Q1 2025 Market Environment
HEALTHY LIVING Q1 2025 MARKET ENVIRONMENT Large drop in European reference price Price Norway (NOK/kg) 12.0 100.0 20% down compared to Q1 2024 (DKK) 9.7 9.7 90.0 10.0 8.9 9.0 80.0 Driven by 13% increase in European harvest 8.0 7.1 7.8 70.0 6.7 6.5 60.0 6.0 EUR DKK 6.0 50.0 40.0 4.0 30.0 20.0 2.0
Slide 38: Q1 2025 – Contract Prices Higher than Spot
HEALTHY LIVING Q1 2025 – CONTRACT PRICES HIGHER THAN SPOT Sisalmoni/Nasdaq spot price reflecting marginal weekly price Price Norway (NOK/kg) 120 12 10 100 8 6 Statistics Norway (SSB) publish average price for all exported 80 4 whole fish (HOG) per week 2 NOK 60 0 -2 Incorporates bilateral contract
Slide 39: Development per Quarter
HEALTHY LIVING DEVELOPMENT PER QUARTER Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (mDKK) 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 Revenue 1,639 1,684 1,867 1,940 2,050 1,670 1,859 1,562 2,206 2,067 1,737 1,470 1,899 Operational EBIT 418 587 325 376 565 353 269 356 710 388 173 280
Slide 40: Dividend
HEALTHY LIVING DIVIDEND Dividend per share in % of adj. EPS* Dividend 99% • On 30 April 2025, the AGM decided to pay out a dividend on 8.44 DKK per share for the year 2024 (equals 50% of adjusted EPS) 59% 53% 49% 49% 50% 50% 50% 50% 50% 50% 46% • Dividend of 501 mDKK will be paid out on or around Ma
Slide 41: Performance per Region
HEALTHY LIVING PERFORMANCE PER REGION Q1 2025 Q1 2024 Faroe Faroe DKK 1,000,000 Scotland Islands* Group Scotland Islands* Group Total operating revenues 496 1,403 1,899 612 1,594 2,206 Depreciation and amortization -78 -111 -189 -73 -97 -169 Operating expenses -371 -858 -1,229 -506 -826 -1,333 Other
Slide 42: Performance per Region
HEALTHY LIVING PERFORMANCE PER REGION Scotland - Operational EBIT / KG 12,000 40.00 20.00 10,000 - 8,000 496 1,403 1,899 612 1,594 2,206 (20.00) 6,000 (40.00) -78 -111 -189 -73 -97 -169 (60.00) -371 -858 -1,229 -506 -826 -1,333 4,000 (80.00) 2,000 24 0 24 5 0 5 (100.00) 71 435 505 39 671 710 0 (120.
Slide 43: Bakkafrost's Segments
HEALTHY LIVING BAKKAFROST’S SEGMENTS Previous segments Segments: • FOF • Freshwater FO • Freshwater SCT • Farming FO • Farming SCT • Services • Sales & Other 43
Slide 44: Changed Faroese Tax on Salmon Farming
THE CHANGED FAROESE TAX ON SALMON FARMING, EFFECTIVE FROM 1. JANUARY 2025 HEALTHY LIVING Revenue tax – Old vs. new tax per 1 Jan. 2025 • Broad cross-coalition political long-term agreement 25.0% behind the change 20.0% Applicable revenue tax rate • The old revenue tax (maxed at 20%) is replaced by a
Slide 45: Bakkafrost – Overview
HEALTHY LIVING BAKKAFROST – OVERVIEW 45
Slide 46: Bakkafrost – Farming Site Overview
HEALTHY LIVING BAKKAFROST – FARMING SITE OVERVIEW 46
Slide 47: State-of-the-Art and Fully Integrated Value Chain
STATE-OF-THE ART AND FULLY INTEGRATED VALUE CHAIN HEALTHY LIVING STRONG CONTROL IN THE FAROE ISLANDS FCR 2024 FTE 2024 1,567 ~1.09 Converting low food value proteins into high volume & value healthy proteins in the Faroes Revenue 2024 (DKK) 100% ASC ~7.3 bn certified in the Faroes 70% ASC 750 tonnes
Slide 48: Our Pillars and Values
HEALTHY LIVING OUR PILLARS AND VALUES 48
Slide 49: Bakkafrost salmon at a glance
Bakkafrost salmon at a glance NUTRITION oMEca-3 706 virano eat wean 1.4 10.1 Wg — #01 10u8 PROTEIN LEVELS 21.08 VITAMIN ME ELEVELS RO! SELENIUM IODINE MEAN MEAN 0.018mg 0.05 mg ROI 0.06 mg ROI0.15 me
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