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Strategic rationale for strong growth in Norway 28 November 2013

CEO Yngve Myhre.

Agenda About SalMar Q3 2013 / 9M 2013

Strategic rationale for strong growth in Norway

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SalMar ASA

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• Founded in 1991, Frøya, Norway, listed on Oslo Stock Exchange May 8th 2007

• Revenues: NOK 4,2 billion, FY 2012 result: NOK 483 million Approx. 920 employees

• 81 wholly owned farming licenses in Norway. 92 including all partnerships.

• One of the largest and most cost efficient salmon farming companies in the world

Central Norway : 58 licenses / 86 000 tgw (2013E)

Group: 2012: 102 600 tgw / 2013E 114 000 tgw / 2014e 133 000 tgw

Northern Norway :23 licenses / 28 000 tgw (2013E)

50% of Scottish Sea Farms Ltd. And 14,9% of P/F Bakkafrost

SalMar Japan KK – sales

SalMar Korea

: an overview

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SalMar has been built brick by brick …

22 % annual growth in volumes

25 % annual growth in EBIT

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…to become an fully integrated salmon farmer…

• Brood stock

• Roe

• Rauma genetics

• 81 owned licenses

•92 including all partnerships

• High quality sites

• Fish health

• SalMar Sales AS

• SalMar Japan KK

• SalMar Korea

• Long time partners

• InnovaMar facility

• Vikenco

• Harvesting

• VAP

• Scale, quality and cost

• Hatch, vaccination and smoltification

• 7 production facilities

• Essential for the performance in the entire value chain

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…and is now one of the leading salmon producers in the world

The fourth largest salmon producer in the world

The third largest salmon producer in Norway

The largest producer of organic salmon in the world

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Unrelenting focus on biological performance (production costs)

Realize the efficiency gains of InnovaMar

Further develop sales and distribution capabilities

Organic and strategic growth – even better utilization of licenses

Growth through acquisitions 1. Central and Northern Norway 2. Scotland, 3. Other areas

No 1 priority:

Keep cost leadership in Norway

Source: Company presentations, EBIT/kg (4q rolling volume weighted)

Updated pr 3q13

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Delivering industry leading margins… …consistently over time

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0

5

10

15

20

4q06 2q07 4q07 2q08 4q08 2q09 4q09 2q10 4q10 2q11 4q11 2q12 4q12 2q13

4q rolling EBIT/kg

SALM

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Agenda About SalMar Q3 2013 / 9M 2013

Strategic rationale for strong growth in Norway

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3,14 4,26

10,14

13,84

10,36

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

Another strong quarter, heading for strongest year ever

– Higher revenues and continued EBIT-improvement q/q driven by stronger prices

Average salmon-price up ~50% from Q3 12

Operational and biological challenging quarter, increase of SAV2 (PD) in Central Norway

Enhanced underlying performance in S&P, earnings dampened by fixed price contracts

35,4 29,6

23,2 22,8

34,8

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

1 227 1 329 1 277 1 433

1 695

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

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Harvest volume (1,000 tons) EBIT/kg (NOK) Operating income (NOKm)

Third quarter highlights

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Group profit and loss Q3/9M 2013

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Revenues boosted by higher prices, average salmon price at NOK 38.87/kg up 50% yoy*

Strong operational EBIT at NOK 360m vs. NOK 111m in Q312 and NOK 316m in Q2

Harvest volume 34,800 tons, in line with Q3 12

Contract share of 25%, with average price below average spot. Contract share 5% of company volumes so far in 2014.

Operational and biological challenging Group EBIT/kg at:

- Q3-13 NOK 10.36 - 9M-13 NOK 11.28

* Historical prices adjusted

NOK million Q3 2013 Q3 2012 9M 2013 9M 2012 FY 2012

Operating income 1 695,4 1 227,2 4 404,8 2 879,6 4 204,8 Cost of goods sold 823,3 713,4 2 112,2 1 578,3 2 324,8 Payroll expenses 165,5 122,4 436,6 338,8 483,2 Other operating expenses 288,5 239,3 791,4 621,4 886,0

EBITDA 418,1 152,1 1 064,6 341,2 510,8

Depreciations 57,7 40,9 153,2 122,6 170,2

Operational EBIT 360,4 111,2 911,4 218,6 340,7

Fair value adjustment -94,9 -25,6 57,8 93,4 290,4 Particular biological events - -3,5 - -54,6 -54,6 Non-recurring gains on aquisition - - 197,5 77,4 62,4 Operational profit 265,5 82,2 1 166,7 334,8 638,9

Income from investments in associates 30,5 11,8 124,6 51,1 93,9 Other financial items 35,7 -41,0 192,5 -118,5 -124,3

Profit before tax 331,7 52,9 1 483,8 267,4 608,5

Tax 65,7 25,8 241,3 53,2 127,1

Net profit for the period 266,0 27,1 1 242,5 214,2 481,4

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Agenda About SalMar Q3 2013 / 9M 2013

Strategic rationale for strong growth in Norway

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There is still room for significant production growth in Norway Norway

SINTEF Fisheries and Aquaculture et.al. states that the

Norwegian seafood industry can be six times bigger within

40 years (from BNOK 90 to BNOK 550).

Aquaculture has a key role:

- Volume: From 1.0 – 5.0 mill tons. (5x). Approx. 5% py.

- Turnover: From 34.0 BNOK – 238.0 BNOK. (7x)

Realizing growth potential requires sustainable production

21 000 km coast line (50% of the equator)

Coastal area of 90 000 km2

Combined agricultural land in Norway, Sweden, Denmark

and Finland

Competent regulators and authorities

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And we know that the conditions for further growth is here…

Natural habitat of the Atlantic salmon.

Gulf Stream, temperature regime and strong unidirectional currents.

IMR: Marine and coastal currents makes sure that nutrients are not a problem in the big picture - and

much more fish can be produced.

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We can`t ignore biology and geography

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…but it requires an absolute focus on sustainability

Environment Pathogen

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"Why is there disease"

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Biology and technology key drivers to ensure sustainable growth

SalMar believes that the use of new technologies and the utilisation of more exposed sites can promote further growth for the Norwegian aquaculture industry in the years ahead.

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Strong partnerships vital to drive the industry forward Depending on close collaboration with various stakeholders and “healthy” industry regulations

Efficient and flexible cooperation with the competent national / regional / local authorities and agencies

SalMar is actively working to influence the development of industry regulations

More flexible MAB scheme

Recommend a growth rate of approx. 5% per year going forward

Strict but flexible regulations is key Assessment procedures before permission is granted Monitoring the environment during production Rest periods before new production

Work closely with other players and local communities Fish Farming, Feed ,Technology, etc.

Feed a growing population and meet demand

Finding the key to the future of aquaculture

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SalMar sees significant growth opportunities:

− SalMar has had a growth of nearly 22% p.y.

− With 6% (total) growth, p.y. till 2025 we see a potential doubling of total harvest volumes.

− Estimated 7000 tons of organic salmon in 2013, tripled to 2025 (10% of total production).

− Strong growth also expected short term. 2014 World: 4%. SalMar 15%.

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SalMar sees great potential for further growth and development

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Thank you for your attention See: www.salmar.no for more information