(Figures in parenthesis refer to the same period last year unless otherwise specified)

The performance in Q1 2025 per region was as follows:

• Faroe Islands             Revenues of DKK 1,403 million (1,594 million)

                                   Operational EBIT of DKK 435 million (671 million)

• Scotland                    Revenues of DKK 496 million (612 million)

                                   Operational EBIT of DKK 71 million (39 million)

Commenting on the result, CEO Regin Jacobsen said:

"Overall, we are satisfied with the results in this quarter. Our Faroese freshwater and marine operations delivered another quarter of strong biological performance, reflecting robust growth, effective sea lice management, and consistent harvesting of large, high-quality fish. The freshwater segment continues to excel, further improving our production efficiency with high-quality, large smolt, which positively impacts costs.

In Scotland, our strategic focus remains firmly on the successful transition to large, high-quality smolt at Applecross. We are steadily progressing in scaling up this production, which remains central to fundamentally transforming our Scottish farming operations and enhancing long-term sustainability and profitability.

The supply of whole salmon from Norway increased 38% in the quarter. This caused a significant drop in salmon prices during the first quarter. The Applecross and Skálavík hatcheries and the Havsbrún feed factory expansion are progressing according to plan. These projects remain critical to achieving our strategic objectives."

During Q1 2025, the FOF segment sourced 109,502 tonnes (136,874 tonnes) of raw material. The Operational EBIT margin was 13% (24%), and fish feed sales amounted to 31,338 tonnes (27,046 tonnes).

In Q1 2025, the Freshwater segments in the Faroe Islands and Scotland transferred a total of 3.8 million (3.7 million) smolts combined:

·                       Freshwater FO: 3.2 million (2.1 million),

·                       Freshwater SCT: 0.6 million (1.6 million).

In Q1 2025, the Freshwater FO segment made an operational EBIT per kg transferred smolt of DKK 42.11 (DKK 25.06), corresponding to NOK 65.75 (NOK 38.36). The Freshwater SCT segment made an operational EBIT per kg transferred smolt of DKK 12.33 (DKK -178.98), corresponding to NOK 19.26 (NOK -274.00).

The Farming segments achieved lower prices in Q1 2025 than in Q1 2024. The Farming segments had higher volumes in Q1 2025 compared to Q1 2024. In Q1 2025, the Farming SCT segment had incident-based costs of DKK 8 million (DKK 18 million).

The total combined harvest in Q1 2025 of the farming segments in the Faroe Islands and Scotland was 25,200 tonnes gutted weight (21,557 tgw):

·                       Farming FO:    18,914 tgw (14,294 tgw),

·                       Farming SCT:   6,286 tgw (7,263 tgw).

In Q1 2025, the Farming FO segment made an operational EBIT per kg of DKK 15.15 (DKK 33.03), corresponding to NOK 23.65 (NOK 50.56). The Farming SCT segment made an operational EBIT per kg of DKK 2.53 (DKK 3.35), corresponding to NOK 3.95 (NOK 5.13).

The Services segment made an operational EBIT per kg of DKK 1.51 (DKK 1.22), corresponding to NOK 2.35 (NOK 1.87). The operational EBIT margin for the segment was 17% (10%).

The Sales & Other segment had a revenue of DKK 2,962 million (2,850 million) and an operational EBIT margin of -1% (0%). The operational EBIT per kg was DKK 1.65 (DKK -0.11), corresponding to NOK 2.57 (NOK -0.16).

The performance related to the Faroe Islands and Scotland as a region can be found in the Appendix.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as a dividend. Bakkafrost's financial position is strong, with a solid balance sheet, a competitive operation, and available credit facilities.

The Annual General Meeting convened on April 30 2025, decided to pay out a dividend of DKK 8.44 (NOK 13.37) per share. The total dividend of DKK 501 million (NOK 781 million) will be paid out on or around May 21 2025.

OUTLOOK AND OPERATIONAL PERFORMANCE

Market

Supply increased in Q1 2025

The supply of salmon increased 5.3% in Q1 2025 compared to Q1 2024, incl. inventory movements. Without inventory movements, the supply increase was 8.4%, according to the latest estimate from Kontali Analyse.

Lower salmon prices in Q1 2025

Salmon reference prices (in NOK) for 4-5kg superior salmon were 18.1% lower this quarter compared to Q1 2024. The price reduction was largely driven by increased supply resulting from improved biology in Norway. Most of the other producing regions contributed to the supply growth, except Canada.

6-7% growth in 2025

The global supply is expected to increase around 7% in H1 2025. In H2 2025, the global supply is expected to grow around 6%, compared to H2 2024. For the full year 2025, the global supply is expected grow around 6-7%.

Overall, the salmon market has been affected by larger than expected supply. Improved biology in Norway has also led to lower share of production fish being sold to the market. These factors impacted the market dynamics in the quarter leading to lower salmon prices, compared to previous years.

Bakkafrost has a strong focus on ensuring a well-balanced flow to the different markets to increase diversification and mitigate market risk. Bakkafrost operates in the main salmon markets, Europe, the USA, and the Far East. Since the beginning of the war in Ukraine, Bakkafrost has stopped all trading with Russia.

Farming

The biological performance in Q1 2025 in the Faroese farming operation continued showing strong performance. Harvest weights have been high and sea lice levels well under control. Feeding, growth and survivability rates have all have been high. These positive trends indicate strong future performance as the fish are expected to thrive and contribute significantly to the operation's success.

The Faroese freshwater operation is continuing to increase the production volume of large high-quality smolt. The capacity utilization is expected to continue growing, leading to increased production volume. The volume is projected to rise slightly in 2025, with smolt weights a bit higher than in 2024. The current hatchery capacity in the Faroes allows for an annual smolt production of 9,000 tonnes, equalling 18 million smolt of 500g. This will increase to 24 million smolt of 500g when the ongoing construction of the new hatchery in Skálavík will be finished late 2026. The construction of the hatchery progresses according to plan.

In Q1 2025, the average weight of transferred smolt in the Faroe Islands was 421g, which is 10% higher than in 2024.

The farming operation in Scotland has performed strongly in Q1 2025. Mortality levels are normally lower in the first quarter than the rest of the year. This has also been the case in this quarter. Overall, the health condition of the fish has been good. Sea lice levels have been managed well and average harvest weights have been exceptionally high.

As earlier announced, Bakkafrost is following a de-risking strategy for the Scottish marine farming in 2025, similar to 2024. Bakkafrost expects to harvest around 67% of the annual volume in H1 2025 with good average weights. Ahead of Q3, harvest weights will probably reduce as some sites are emptied to reduce risk.

During 2025, the biomass at sea will gradually change character, transitioning to be based on high-quality smolt. This strategic shift is expected to enhance overall fish health and growth rates, leading to a more robust and sustainable aquaculture environment.

In the Scottish freshwater operation, the main priority is to ensure a steadily growing output of large high-quality smolt from Applecross which is currently in the ramp-up phase to deliver fish above 200g in 2025. This is not a straight-line development, but a delicate and gradual process involving some level of risk which reduces as the operation is fine-tuned, and all procedures executed at least once. Production volume and smolt release will increase throughout the year and into 2026. With the new Applecross 5 module now in production, the production capacity is around 3,500 tonnes of smolt annually. This capacity will be utilised to make Bakkafrost self-sufficient with around 14 million high-quality smolt of 250g.

Another priority in 2025 is the completion of the Applecross phase 6 and 7, which will improve the biosecurity in the smolt production and add flexibility.

In Q1 2025, the average weight of transferred smolt from Applecross in Scotland was 232g, which is 80% higher than in Q1 2024. The average smolt weight for all of Bakkafrost's smolt release in Scotland in the quarter was 169g, which is 40% higher than in Q1 2024.

Smolt transfer

Bakkafrost's expected smolt transfer in 2025 in the Faroe Islands is around 18.5 million smolts with an average weight of around 430g. In Scotland, the smolt transfer in 2025 is expected to be around 10.0 million smolts with an average weight of above 200g. The number and average weight of smolts transferred are key elements of predicting Bakkafrost's future production.

In 2025, Bakkafrost expects to harvest around 77,000 tonnes gutted weight in the Faroe Islands and 20,000 tonnes gutted weight in Scotland, giving a total of around 97,000 tonnes gutted weight. The quarterly harvest profile is outlined in in the table below. Biological, environmental and market conditions can affect the expected harvest profile.

Expected harvest profile in 2025 as a % of total harvest pr. region:

The estimates for harvest volumes and smolt transfers in both geographies are dependent on biological development.

Sales & VAP (Value added products)

Bakkafrost's highly flexible value chain includes state-of-the-art VAP processing capacity, which enables the company to adapt effectively to rapidly changing market situations.

As a result of changes in the Faroese revenue tax, Bakkafrost has adjusted the strategy for contracted VAP (Value-Added Products) to reduce contract exposure.

For 2025, Bakkafrost intends to sign contracts covering around 15-20% of the expected harvest volumes in the Faroe Islands and Scotland combined.

FOF (Fishmeal, oil and feed)

The outlook of fishmeal and fish oil production is dependent on the availability of raw materials.

The ICES 2025 recommendation for blue whiting is 1,447 thousand tonnes, which represents a -5.4% decrease from the recommendation for 2024.

In 2025 Bakkafrost expects similar production volumes of fishmeal and fish oil as in 2025.

Bakkafrost expects the feed production at Havsbrún to be around 150,000 tonnes in 2025. Close to all of this will be sold internally to Bakkafrost's Faroese and Scottish Farming segments.

Investments

On the Capital Markets Day on 6 June 2023, Bakkafrost announced a 6.3bn DKK investment plan for 2024-2028. The investrments will enable a transformation of the operation in Scotland and provide sustainable growth in the Faroe Islands as well as Scotland.

The main purpose of the investments in Scotland is to replicate Bakkafrost's successful operation in the Faroe Islands. A part of this is to implement Bakkafrost's large smolt strategy in Scotland, which is achieved through building sufficient and energy-efficient hatchery capacity. The 2024-2028 investment plan includes projects to build hatchery capacity to produce above 15 million large smolts annually. Having large smolt in Scotland will transform the performance, lower the biological risk and increase harvest volumes. In addition to building hatchery capacity, Bakkafrost plans to strengthen the processing capabilities and increase flexibility in operation. Bakkafrost will also invest in more service vessel capacity to improve the mitigation of biological risk and improve the cost of operation. Further, Bakkafrost will make investments in marine site development.

The investments in the Faroe Islands include increasing annual hatchery production capacity to around 24 million smolts at 500g, cost-efficient repurposing of old hatcheries into broodstock operation, expansion of feed production capacity and obtaining growth through optimization of existing sites and new technology.

With the investment plan, Bakkafrost expects to sustainably grow the total annual harvest volumes to 165,000 tonnes in 2028. Over the same period, the total annual production capacity in Bakkafrost's value chain will reach 200,000 tonnes gutted weight.

Update on the 2024-2028 investment plan

Since the announcement of the 2024-2028 investment plan, Bakkafrost has decided to change the priority of some of the investment projects in Scotland, including the second planned hatchery at Fairlie and new processing facility. Consequently, the capex spend in 2024 and 2025 is expected to reduce around 800 mDKK in total, compared to the investment levels announced in the 2024-2028 investment plan.

Bakkafrost will host the next Capital Markets Day on 16-17 June 2025 in the Faroe Islands.

Financial
The global salmon product market's long-term balance is likely to favour Bakkafrost. Bakkafrost has a long value chain and a cost-efficient production of high-quality salmon products and will likely maintain financial flexibility going forward.

In March 2022, Bakkafrost secured a 700 mEUR sustainability-linked credit facility (expandable by 150 mEUR) with a 5-year term and 2-year extension options which have been executed. This facility, along with Bakkafrost's strong equity ratio, bolsters the Group's financial strength for organic growth and cost reduction in Scotland, while also facilitating M&A and future organic growth opportunities, and upholding an unchanged dividend policy.

Please find the Company's Q1 2025 report and the Q1 2025 presentation enclosed.

Contacts:

• Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)
• Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

About Bakkafrost:

Bakkafrost is the largest salmon farmer in the Faroe Islands and the second-largest salmon farmer in Scotland. The Group is fully integrated from feed production to smolt, farming, VAP and sales. The Group has production of fishmeal, fish oil and salmon feed in the Faroe Islands and primary and secondary processing in the Faroe Islands, Scotland and Denmark. The Group operates sea farming and broodstock operations in both the Faroe Islands and Scotland. The Group has built a biogas plant in the Faroe Islands. The headquarter is located in the Faroe Islands, and the Group has sales and administration offices in Grimsby (UK), Edinburgh (Scotland), Boulogne-Sur-Mer (France), New Jersey (US) and Munkebo (DK). The Bakkafrost Group has 1,686 employees (full-time equivalents).

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