P/F BAKKAFROST

“While the biological performance in Scotland was significantly stronger than in previous years, it still lags behind the robustness seen in the Faroe Islands.”

Annual report 2024A · The company itself

“The global supply growth for salmon in 2025 is expected to be around 6%, with 6% supply growth in H1 and also 6% in H2. Combined with improved biological performance in Norway, this could exert some downward pressure on prices in H1 and reduce price volatility during the year.”

Annual report 2024A · The company itself

“Bakkafrost’s financial performance and growth are closely tied to farmed salmon prices, which have historically fluctuated significantly. Market prices are expected to remain cyclical, influenced by the balance of supply and demand, as well as the availability of different sizes and qualities for various markets.”

Annual report 2024A · The company itself

“Salmon lice (Lepeoptheirus salmonis) and especially treatment against salmon lice is considered a critical risk. The lice infestation itself does not cause considerable physical damage to the fish, but the extensive effort to continuously keep the lice number low, is a demanding task causing issues concerning animal welfare, as well as economic consequences.”

Annual report 2024A · The company itself

“Reduced smolt quality and transfer-related stress can contribute to high post-stocking mortality in seawater, leading to secondary health challenges throughout the production cycle. Bakkafrost has allocated additional resources to optimize the stocking process and reduce mortality rates.”

Annual report 2024A · The company itself

“This trend needs to be considered in the context of a 6% supply growth in the EU+UK market and somewhat stagnant demand, with higher prices.”

Annual report 2024A · The company itself

“However, looking at 2025 market is expected to remain similar, with price pressure and growth rates estimated to 5% to 6% worldwide.”

Annual report 2024A · The company itself

“Kontali's best estimate for FY 2025 indicates a limited global harvest growth rate of 5.0 – 6.0%.”

Annual report 2024A · The company itself

“Our operations rely on natural resources, particularly raw materials for salmon feed, such as marine ingredients, soy, wheat, and rapeseed oil. Feed production depends on raw material availability.”

Annual report 2024A · The company itself

“Production capacity in Norway and Europe is approaching full utilisation and need for upgrades or investments are necessary to support long-term growth and access to fish feed. Norway and Chile accounts for approximately 75 % of the total fish feed consumption.”

Annual report 2024A · The company itself

“Despite initial delays in ramping up the facility, we are now seeing steady progress, with the first batches of smolt above 200g transferred in Q4 2024. Going forward, the average weight of all smolt stocked in Scotland will be above this threshold, marking a fundamental shift in our Scottish farming operations and supporting long-term biological improvements and growth opportunities.”

Annual report 2024A · The company itself

“The transition to large, high-quality smolt in Scotland is now well underway, with Applecross supplying high-quality smolt above 200g. During 2025, most of our old “legacy” fish in the marine sites will be replaced with large-high-quality smolt from Applecross, which is expected to reduce biological risk significantly, most notably from 2026 and onwards.”

Annual report 2024A · The company itself

“The investments 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.”

Annual report 2024A · The company itself

“A part of this is to implement Bakkafrost’s large smolt strategy in Scotland, which is achieved through building sufficient and energyefficient hatchery capacity. The 2024-2028 investment plan includes projects to build hatchery capacity to produce above 15 million large smolts annually.”

Annual report 2024A · The company itself

“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.”

Annual report 2024A · The company itself

“With the investment plan, Bakkafrost expects to sustainably grow the total annual harvest volumes to 165,000 tonnes in 2028.”

Annual report 2024A · The company itself

“In 2023, Bakkafrost announced a new 5-year 6.3BN DKK investment programme, which aims to increase the capacity to around 200,000 tonnes of salmon by 2028 and enable a total annual harvest volume of 165,000 tonnes (head-on gutted weight).”

Annual report 2024A · The company itself

“To secure inputs and minimize risk, we source from multiple vendors within each commodity category and continuously refine feed composition to maintain flexibility when availability fluctuates.”

Annual report 2024A · The company itself

“Central to Bakkafrost’s strategy is a strong growth ambition. The opportunities for sustainable growth are good in the Faroe Islands and Scotland.”

Annual report 2024A · The company itself

“Bakkafrost has an ambitious growth strategy which enables us to compete in the world’s fastest growing food producing sector and make a significant contribution to providing healthy sustainable food for a growing population.”

Annual report 2024A · The company itself

“In 2023, Bakkafrost introduced a new five-year investment plan, targeting a more than 50% increase in premium salmon output by 2028. Our planned investments for 2024-2028 will expand total production capacity to approximately 200,000 tonnes (head-on gutted weight) and support a harvest volume of 165,000 tonnes by 2028.”

Annual report 2024A · The company itself

“Synergies and Efficiency Gains One of the key synergies from acquiring Bakkafrost Scotland has been the increased efficiency and output in our fish feed production in the Faroe Islands. Since all salmon in the Faroe Islands and Scotland are fed on our own high-quality feed, and due to Scotland’s warmer seawater temperatures in winter, feed capacity utilisation has improved, resulting in a more stable year-round production.”

Annual report 2024A · The company itself

“Since 2013, Bakkafrost has invested DKK 6.4 billion into its value chain in the Faroe Islands.”

Annual report 2024A · The company itself

“Our fully integrated value chain is the longest in the industry and uniquely includes inhouse fish meal and fish oil production for feed manufacturing.”

Annual report 2024A · The company itself

“Bakkafrost has strategically chosen to maintain a substantially higher marine inclusion in the salmon feed, compared to peers in the industry.”

Annual report 2024A · The company itself

“The FOF segment sold 140,361 tonnes of feed in 2024, compared to 127,775 tonnes in 2023. Bakkafrost used 138,424 tonnes of sold feed in 2024 internally, corresponding to 99%.”

Annual report 2024A · The company itself

“Bakkafrost has a long-term strategy to produce and sell valueadded products (VAP), representing around 40% of the Faroese harvested volumes. The sales of VAP products stabilise the Group’s earnings through fixed-price contracts, which are less volatile than spot market prices.”

Annual report 2024A · The company itself

“Sea lice management remains a priority, and Bakkafrost has implemented non-medicinal treatments alongside advanced monitoring systems to minimise sea lice prevalence while enhancing fish welfare.”

Annual report 2024A · The company itself

“The focus on feed efficiency has led to ongoing research into alternative protein sources, ensuring high omega-3 levels while reducing environmental impact.”

Annual report 2024A · The company itself

“Percentage increase from year 0 in the company to year 5 • Annual salmon survival rate of 96% (Faroes) and 92% (Scotland) • Zero antibiotic use • Maintain industry-leading approach to animal welfare • High omega-3 levels • High protein levels average 19g/100g • No product recall • Maintain ASC certification in the Faroes and achieve ASC certification in Scotland by 2027 • Focus on producing salmon from own unique breed • Reduce by 50% the Scope 1 & 2 CO 2 footprint by 2030 • Reduce the Scope 3 footprint by 52% per tonnes of product by 2030 • Water recirculation rate over 97% in all hatcheries • Measure freshwater use/tonne of fish processed by 2026 • Zero fish escapes • Group FCR below 1.083 weighted average • Continue research and investigation of new sustainable sources for marine ingredients.”

Annual report 2024A · The company itself

“Bakkafrost reduces risk through a diversified market strategy, selling across various geographic regions and distribution channels (retail and food service). Operating in financially independent markets helps mitigate economic fluctuations.”

Annual report 2024A · The company itself

“Intersegmental transfers and transactions are priced based on direct market prices, if possible, or estimates derived from market pricing and external pricing approaches.”

Annual report 2024A · The company itself

“We harvested 90.7 thousand tonnes of salmon, a 24% increase from 2023.”

Annual report 2024A · The company itself

“Fishmeal, oil and feed In 2024, the Fishmeal, oil and feed segment recorded recordhigh feed sales of 140 thousand tonnes, despite lower marine raw material sourcing (310 thousand tonnes) compared to the record levels of 2023.”

Annual report 2024A · The company itself

“With increased capacity utilization and strong operational efficiency, we successfully transferred 17.1 million smolts at an average weight of 410g. This ensures the continued supply of robust smolt to our farming sites, reducing biological risks and providing volume growth.”

Annual report 2024A · The company itself

“Harvest weights have increased significantly from 2023, reaching an average of 5.3kg gutted weight.”

Annual report 2024A · The company itself

“For 2025, Bakkafrost anticipates a harvest of approximately 77,000 tonnes gutted weight in the Faroe Islands and 20,000 tonnes gutted weight in Scotland, totalling around 97,000 tonnes gutted weight.”

Annual report 2024A · The company itself

“Bakkafrost is the leading producer of superior-quality salmon from the Faroe Islands and Scotland, offering a wide range of healthy and nutritious salmon products from its own facilities.”

Annual report 2024A · The company itself

“We differentiate ourselves by increasing brand awareness, based upon the provenance, superior quality and large sized salmon, taste and nutritional profile of our salmon with full traceability, fed on our own feed with high marine content.”

Annual report 2024A · The company itself

“Total volumes harvested in 2024 for Bakkafrost Group were 90,656 tonnes gutted weight, compared to 73,006 tonnes gutted weight in 2023 – a change in volume of 24%.”

Annual report 2024A · The company itself

“European spot prices for Atlantic salmon (Nasdaq 3-6 kg) ended on average in 2024 at €8.2 per kg, slightly below the levels seen in 2023 and 2022.”

Annual report 2024A · The company itself

“The Group’s main strategic business area is aquaculture, which now consists of the following seven segments: fishmeal, fish oil and fish Feed (FOF), freshwater Faroe Islands, freshwater Scotland, farming Faroe Islands, farming Scotland, services, and sales & other.”

Annual report 2024A · The company itself

“Fish farming involves the on-growing of salmon, nurturing them in the marine environment from smolt to harvest-ready salmon. The Group holds marine farming licenses around the Faroe Islands and Scotland, which are reported as two separate segments (farming Faroe Islands and farming Scotland).”

Annual report 2024A · The company itself

“Bakkafrost sources marine raw materials to produce high quality fishmeal and fish oil. In addition to sourcing industrial fish, unviable to produce for human consumption, we also source all fish trimmings and fish silage from the Faroese pelagic fishing industry.”

Annual report 2024A · The company itself

“However, both fishmeal and fish oil prices still impact the feed-price delivered to farmers. In 2023, the Peruvian fishmeal industry experienced one of its most difficult years of the century after two fishing seasons with catches far below normal. The consequences of the cancelled first season and a second season with a quota below normal is that fishmeal production reduced by around 30% compared to 2022 and fish oil production reduced by 81%.”

Annual report 2024A · The company itself

“Global fishmeal and fish oil supplies grew 26 percent in 2024. That growth is almost entirely thanks to the Peruvian anchoveta fishery, which ended up catching over 95 percent of its total allowable catch of 2.51 million metric tons (MT) and had a notable impact on prices both in Americas and Europe. Prices for fish oil remain high around USD 3,000/ton.”

Annual report 2024A · The company itself

“The global demand for soy could lead agricultural companies to clear new land for crop production, resulting in increased deforestation risks.”

Annual report 2024A · The company itself

“Beyond the risk of the government introducing an environmental tax on this commodity, these regulations can cause shortages or delays in the soy supply, leading to higher prices. Since soy is a key ingredient in salmon feed and makes up over 15% of our total feed composition thus, any price increase directly affects feed costs, which can reduce profit margins.”

Annual report 2024A · The company itself

“Marine proteins and fish oil are an essential part of our fish feed and account for approximately 50% of our total feed composition. In 2023, 51% of the fishmeal and 81% of the fish oil in our feed were derived from fish trimmings.”

Annual report 2024A · The company itself

“As a key component of our salmon feed, soy presents a potential risk due to its association with deforestation in regions of production.”

Annual report 2024A · The company itself

“In 2024, Bakkafrost spent around 120 mDKK in total on the procurement of certified soy, which is included under the financial line item ‘Operating expenses’ for ‘Fishmeal, oil, and feed’, as detailed in Note 2.3 of the Management Statement in this report.”

Annual report 2024A · The company itself

“Should future regulations lead to significant increases in the cost of soy, Bakkafrost’s flexible feed strategy enables adjustments to ingredient composition as necessary.”

Annual report 2024A · The company itself

“We exclusively procure soy certified under recognised sustainability standards, such as Proterra and Europe Soya, which include robust criteria for preventing deforestation and habitat conversion. Regular supplier audits and compliance checks are conducted to verify adherence to these certifications, ensuring that our feed production supports biodiversity conservation and aligns with our corporate sustainability goals.”

Annual report 2024A · The company itself

“To mitigate these risks, Bakkafrost actively invests in research and development to explore alternative feed ingredients, such as marine-based proteins and other sustainable sources. These efforts aim to reduce our reliance on soy while maintaining the nutritional quality of our feed.”

Annual report 2024A · The company itself

“In 2024, 100% of soy was sourced from certified suppliers, demonstrating Bakkafrost’s commitment to sustainable sourcing.”

Annual report 2024A · The company itself

“Total revenues for the FOF segment in 2024 amounted to DKK 2,731 million, compared to DKK 3,489 million in 2023, a decrease of 22%.”

Annual report 2024A · The company itself

“The World Resources Institute has identified improving aquaculture productivity and environmental performance as a key solution to meeting the rising demand for nutritious protein (Creating a Sustainable Food Future, 2018). Farmed salmon is among the most resource-efficient animal proteins, with a low carbon footprint, minimal water and land use, efficient feed conversion, and a high edible yield (Global Salmon Initiative).”

Annual report 2024A · The company itself

“To be a significant contributor in fulfilling the world’s growing demand for healthy and sustainably produced protein VALUES Provenance, Passion and Respect MISSION To produce the best salmon in the world!”

Annual report 2024A · The company itself

“We are contributing towards target 2.4 by providing efficient sustainable production of a healthy source of protein and essential fatty acids to feed a growing global population.”

Annual report 2024A · The company itself

“However, the ISA outbreak detected in two pens at the A-19 farming site in May required an early harvest of the entire site, reducing the total harvest volume and affecting achieved market prices negatively.”

Annual report 2024A · The company itself

“Proliferative Gill Disease (PGD) and Complex Gill Disease (CGD) are major challenges in Bakkafrost Scotland’s seawater production. These conditions are influenced by pathogens, environmental factors like plankton and suspended solids, and overall gill health.”

Annual report 2024A · The company itself

“However, the Faroese industry has encountered biological challenges, including fish health issues such as gill disease, stricter regulations, elevated levels of sea lice, and occasional production disruptions due to adverse weather conditions.”

Annual report 2024A · The company itself

“Bakkafrost reports the entity-specific metric of the percentage of soy that was sourced during the reporting year that was certified against Proterra or other certifications that include deforestation and/or conversion requirements. • Salmon escape incidents – Actual negative impact Bakkafrost can have a negative impact on the state of wild salmon stocks due to incidents in the company’s Farming segment where farmed salmon escape from their pens, caused by storms, predator interactions (e.g. seals), or damaged equipment. These escapes can result in farmed salmon being vehicles for the transfer of biological vectors to wild populations. Additionally, if farmed salmon interbreed with wild salmon, they might weaken the wild population because hybrids are less adapted to the natural environment and have lower reproductive success.”

Annual report 2024A · The company itself

“In 2024, Bakkafrost reported 3 incidents of fish escapes, 303 fish in total.”

Annual report 2024A · The company itself

“In Scotland, where wild salmon populations are present, we have implemented a strict zero-tolerance policy for escapes. This includes significant investments in enhanced containment systems, such as reinforced nets, mooring upgrades, and continuous monitoring technology.”

Annual report 2024A · The company itself

“In 2024, Bakkafrost allocated 190 mDKK toward cage infrastructure improvements, monitoring systems, and operational upgrades to ensure the security of farming operations.”

Annual report 2024A · The company itself

“By maintaining stringent controls and a commitment to continuous improvement, Bakkafrost reinforces its dedication to protecting biodiversity and supporting sustainable aquaculture practices • Sea lice management Bakkafrost has achieved record-low sea lice levels by implementing innovative strategies focused on minimizing ecological impact. Our efforts include the deployment of dualtreatment farming service vessels equipped with advanced freshwater systems to treat sea lice without relying on chemical interventions.”

Annual report 2024A · The company itself

“In 2024, Bakkafrost allocated 204 million DKK to the operation, investments and maintenance of these vessels and other related sea lice management activities.”

Annual report 2024A · The company itself

“The impact occurred in the reporting period in Bakkafrost’s direct operations, particularly in the Farming segment of Bakkafrost’s business model. The negative impact constitutes core Bakkafrost operations and originates from the company’s strategy and business model.”

Annual report 2024A · The company itself

“The impact not only negatively affects farming conditions but also poses a risk to the company’s license to operate due to public opposition to the environmental consequences of salmon farming emissions.”

Annual report 2024A · The company itself

“Anticipated effects include increased regulatory scrutiny, potential operational restrictions in sensitive marine areas, and heightened stakeholder expectations to minimise biodiversity impacts.”

Annual report 2024A · The company itself

“Bakkafrost is exposed to the inherent risk of impaired license to operate due to the public perception that salmon farming has a negative impact on the seabed. This can potentially lead to legal restrictions on acquiring new farming sites and limitations on current sites which will mean decreased salmon output and thus decreased revenue.”

Annual report 2024A · The company itself

“As consumer and public awareness of the environmental impacts of salmon farming continues to grow, areas such as seabed preservation, salmon escapes, and sea lice management are expected to receive increased focus. Bakkafrost recognizes the importance of continuously adapting its marine operations to address these concerns effectively, ensuring alignment with stakeholder expectations and regulatory requirements.”

Annual report 2024A · The company itself

“Among the regulatory measures is the potential adjustment of stocking allowances, which could limit the number of fish permitted at farming sites if performance standards are not met. This would eventually lead to reduced salmon output, resulting in decreased revenues.”

Annual report 2024A · The company itself

“This increased land-based production in the Faroe Islands also generates substantial organic waste, which we utilize in our biogas plant, FÖRKA. As a result, Bakkafrost has become a significant producer of renewable energy and fertilizer in the Faroes - an excellent example of a circular economy where business growth and sustainability go hand in hand.”

Annual report 2024A · The company itself

“These strategies include investing in relocating farming pens (applicable to operations in the Faroe Islands), adopting new technologies, and transitioning more biomass to on-land facilities. By shortening the period during which salmon are farmed in the marine environment, these measures contribute to reducing benthic impacts, minimizing the effects of sea lice, and mitigating the risk of salmon escapes.”

Annual report 2024A · The company itself

“The trade flow is also characterized by significant salmon processing hubs, such as Poland, Denmark, and the Netherlands.”

Annual report 2024A · The company itself

“The most important markets are the European, US, and Chinese markets.”

Annual report 2024A · The company itself

“The total volumes harvested in Scotland 2024 were 27,880 tonnes gutted weight compared to 20,598 tonnes gutted weight in 2023 - a change in volume of 35%.”

Annual report 2024A · The company itself

“SUPPLY OF ATLANTIC SALMON IN THE US MARKET Chile Canada Norway Faroe Islands United Kingdom USA Other European market In 2024, the European Union market, including the United Kingdom, experienced a 6% increase following a 5% decline in farmed Atlantic salmon in 2023 to a total supply of 1.27 million tonnes WFE. This is equal to a capita consumption of 2.5 kilos WFE on average. Germany, France, and the United Kingdom, collectively accounting for approximately 50% of the total consumption, emerged as the largest markets for salmon within Europe.”

Annual report 2024A · The company itself

“SUPPLY OF ATLANTIC SALMON TO CHINESE MARKET (INCL HONG KONG) Norway Chile United Kingdom Denmark Australia Faroe Islands Canada Others Supply of farmed Atlantic salmon from the Faroe Islands Over the past decade, the Faroese salmon industry has demonstrated unparalleled biological performance, with the lowest loss rates and consistently high average harvest weights compared to other producing regions. This success has resulted in the industry achieving the highest smolt yield in the global salmon sector. The substantial growth in production on the Faroe Islands can be attributed to significant investments in smolt facilities, and implementation of a large smolt strategy – that enables increased stocking and turnover of biomass in the sea.”

Annual report 2024A · The company itself

“Despite achieving a record year in 2021, with Atlantic salmon export volume surpassing 105,000 tonnes WFE, sales have declined to below 90,000 tonnes WFE in 2023. In 2024, supply of salmon from salmon increased back up to 100,000 tonnes WFE.”

Annual report 2024A · The company itself

“With sales suspended in Russia, the European and U.S. markets collectively accounted for over 80% of the total supply volume, reaching market shares not seen since 2011.”

Annual report 2024A · The company itself

“In Europe, growth was hampered by fish health and treatments in the United Kingdom, Faroe Islands, and Iceland, resulting in a combined decline in harvest volume of just over 20,000 tonnes WFE in 2023. Last year, 2024, a significant comeback in terms of volume growth from United Kingdom and for Europe +46,000 tonnes WFE in total.”

Annual report 2024A · The company itself

“Salmon from the Faroe Islands and Scotland is recognised globally as top quality.”

Annual report 2024A · The company itself

“The strong sustainability profile of Bakkafrost salmon is particularly important to clients in the premium sushi segment. Bakkafrost does not use any antibiotics and uses only non-GMO ingredients in feed.”

Annual report 2024A · The company itself

“We focus on farming high-quality and healthy salmon rich in flavour, supple in texture, and vibrant in colour. We go above and beyond to supply our customers with fresh and nutritious salmon.”

Annual report 2024A · The company itself

“Sustainably sourced salmon has one of the lowest carbon footprints of all animal proteins including; chicken, pork, beef, and lamb. It is highly resource efficient and compared to these proteins, has the highest protein retention, the lowest feed conversion ratio, and the lowest water footprint.”

Annual report 2024A · The company itself

“Percentage increase from year 0 in the company to year 5 • Annual salmon survival rate of 96% (Faroes) and 92% (Scotland) • Zero antibiotic use • Maintain industry-leading approach to animal welfare • High omega-3 levels • High protein levels average 19g/100g • No product recall • Maintain ASC certification in the Faroes and achieve ASC certification in Scotland by 2027 • Focus on producing salmon from own unique breed • Reduce by 50% the Scope 1 & 2 CO 2 footprint by 2030 • Reduce the Scope 3 footprint by 52% per tonnes of product by 2030 • Water recirculation rate over 97% in all hatcheries • Measure freshwater use/tonne of fish processed by 2026 • Zero fish escapes • Group FCR below 1.083 weighted average • Continue research and investigation of new sustainable sources for marine ingredients.”

Annual report 2024A · The company itself

“We differentiate ourselves by increasing brand awareness, based upon the provenance, superior quality and large sized salmon, taste and nutritional profile of our salmon with full traceability, fed on our own feed with high marine content.”

Annual report 2024A · The company itself

“Salmon farming is highly dependent on natural resources and the license to operate, as reflected in Bakkafrost’s business model, in which sustainability is deeply embedded.”

Annual report 2024A · The company itself

“Sustainability is deeply embedded in the business strategy, and we have set various sustainability targets within each pillar of our operations, which drive and shape the business strategy and operations.”

Annual report 2024A · The company itself

“Bakkafrost relies on certifications, such as the MSC, ASC and BAP certifications. 100% of Bakkafrost’s sites in the Faroe Islands and 75% in Scotland are ASC-certified, and the Scottish operation is also BAP-certified.”

Annual report 2024A · The company itself

“Global Salmon Initiative (GSI) Bakkafrost is a founding member of the initiative, which is focused on promoting sustainable aquaculture leadership through collaboration.”

Annual report 2024A · The company itself

“Bakkafrost is a participant in the UN Global Compact and a member of the Business Action Platform for the Ocean. Through the action platform, we aim to contribute to the health of the ocean, through a focus on growth, innovation, and sustainability.”

Annual report 2024A · The company itself

““No product recall, No market bans, No IT security incidents” • Sustainability recommendations on all Bakkafrost-branded products • Average customer rating of >8.5 and a net promoter score above +50 • Include sustainability in CAPEX request form • Board to receive sustainability training annually • Implement use of new technology and digitalisation to contribute to operational efficiency (both regarding the salmon and environment) • Employee engagement scores above industry benchmark (provided by Peakon) • Minimum three employee events a year with focus on sustainability engagement and awareness • Reduce group absence rate to 3.9% • Reduce LTIR to below 5 • Zero fatalities • Have 10 vocational graduates from the Faroese vocational education program for salmon farmers per year by 2026 • Increase number of women in management positions (managers with direct reports) to at least 25% • Disclose gender paygap.”

Annual report 2024A · The company itself

“The US market demonstrated resilience despite increasing price sensitivity in some market segments, while demand in China continued its steady upward trajectory. With FarCargo, we have significantly strengthened our logistical capabilities to the US and China.”

Annual report 2024A · The company itself

“The Bakkafrost brand is particularly strong in the US and China, where demand for large salmon is strong.”

Annual report 2024A · The company itself

“This translates to a per capita consumption of approximately 1.9 kg WFE, signifying an average of 6-7 meals per capita each year. Notably, salmon solidified its position as the second-most consumed seafood species among US consumers, with shrimp maintaining its dominance as the top choice.”

Annual report 2024A · The company itself

“The most important markets are the European, US, and Chinese markets.”

Annual report 2024A · The company itself

“RELATIVE CHANGE IN GLOBAL SUPPLY OF ATLANTIC SALMON AND EUROPEAN SPOT PRICES Change in global market supply of farmed Atlantic salmon from the previous year Change in European spot prices - fresh Atlantic salmon (Nasdaq 3-6 kg in NOK) from the previous year - 0.50 1.00 1.50 2.00 2.50 3.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 kg wfe / capita PER CAPITA CONSUMPTION OF FARMED ATLANTIC SALMON FOR SELECTED MARKETS EU+UK USA Japan Russia China+Hong Kong Brazil U.S. market In 2024, the U.S. market, following a prolonged and consistent growth trend, experienced a slight decline of -2%. The decline was primarily influenced by a more than -6% decline in supply from Chile or – 23,200 tonnes WFE compensated by increased shipments from Canada + 7 000 tonnes WFE.”

Annual report 2024A · The company itself

“With sales suspended in Russia, the European and U.S. markets collectively accounted for over 80% of the total supply volume, reaching market shares not seen since 2011.”

Annual report 2024A · The company itself

“The US market demonstrated resilience despite increasing price sensitivity in some market segments, while demand in China continued its steady upward trajectory. With FarCargo, we have significantly strengthened our logistical capabilities to the US and China.”

Annual report 2024A · The company itself

“The Bakkafrost brand is particularly strong in the US and China, where demand for large salmon is strong.”

Annual report 2024A · The company itself

“The most important markets are the European, US, and Chinese markets.”

Annual report 2024A · The company itself

“In terms of the value of the trade to China/Hong Kong (exports), the progress has been even more remarkable, surpassing 1 billion U.S. dollars mark in 2023.”

Annual report 2024A · The company itself

“Fresh salmon delivered to long-distance markets such as the US and Asia are transported by air.”

Annual report 2024A · The company itself

“Bakkafrost can distribute both fresh and frozen fish to various markets. In 2024, FarCargo, a subsidiary of Bakkafrost, started utilizing its aircraft to transport fresh salmon directly from the Faroe Islands to the US market within a few hours.”

Annual report 2024A · The company itself

“In Q1 2024, Bakkafrost started its operation with its own cargo plane to deliver fresh salmon to the US and Chinese markets. This has enabled Bakkafrost to deliver fresh salmon to customers in these markets within 24 hours from when the fish was alive in the Faroe Islands.”

Annual report 2024A · The company itself

“Bakkafrost is the biggest private employer in the Faroe Islands and among the important employers in the rural regions of Scotland.”

Annual report 2024A · The company itself

“The natural conditions and cold waters in the North Atlantic around the Faroe Islands and Scotland are perfect for raising salmon. Bakkafrost will further promote this unique provenance as producing exceptional quality salmon.”

Annual report 2024A · The company itself

“Bakkafrost acquired The Scottish Salmon Company PLC, an integrated salmon farming business in Scotland with a focus on traceability and total supply chain integrity.”

Annual report 2024A · The company itself

“The main challenge ahead in terms of ensuring sustainable business conduct in the future is implementing investment plans while decoupling the growth from the environmental impact, including the decoupling of carbon emissions.”

Annual report 2024A · The company itself

“We have set SBTi-validated carbon reduction targets of: • 50% reduction in absolute Scope 1 and 2 GHG emissions by 2030 from a 2020 base year • 52% reduction per tonne of product sold in Scope 3 GHG emissions from a 2020 base year Our carbon reduction targets guide our overall business strategy and informs our investment plan. For example, we have allocated 355 mDKK in our 2022-2026 five-year investment plan to green transition.”

Annual report 2024A · The company itself

“Bakkafrost is the biggest private employer in the Faroe Islands and among the important employers in the rural regions of Scotland.”

Annual report 2024A · The company itself

“The natural conditions and cold waters in the North Atlantic around the Faroe Islands and Scotland are perfect for raising salmon. Bakkafrost will further promote this unique provenance as producing exceptional quality salmon.”

Annual report 2024A · The company itself

“We operate in a knowledge-intensive industry and rely on a skilled, motivated, and engaged workforce. We can attract and retain employees with the right competencies and knowledge by focusing on work satisfaction, inclusion, and developing employees' competencies.”

Annual report 2024A · The company itself

“We take great pride in creating meaningful jobs in remote areas, and our strategic priority is to be an employer of choice. We pay our employees an adequate salary, aim to create a safe and inclusive work environment and encourage them to take responsibility and pride in their work.”

Annual report 2024A · The company itself

“Salmon have become a “must-have” product in retail stores – a trend expected to increase.”

Annual report 2024A · The company itself

“While inflation and the rising cost of living have impacted demand and market dynamics for salmon, sales to both retail or foodservice-segments have demonstrated resilience and remains robust. Within the EU+UK market, the current situation can accurately be described as having "insufficient availability."”

Annual report 2024A · The company itself

“We will transform the performance of our Scottish operation through targeted investments and applied best practices, which will reduce biological risks, reduce costs, improve product quality, enable simpler processes and release synergies.”

Annual report 2024A · The company itself

“The broodstock development program focuses on refining breeding strategies to improve disease resistance, enhance survival rates, and optimise growth efficiency. Through extensive research, Bakkafrost aims to develop robust salmon strains with improved resilience against common health challenges.”

Annual report 2024A · The company itself

“For example, 355 mDKK have been allocated to green transition in Bakkafrost’s investment plan.”

Annual report 2024A · The company itself

“While inflation and the rising cost of living have impacted demand and market dynamics for salmon, sales to both retail or foodservice-segments have demonstrated resilience and remains robust. Within the EU+UK market, the current situation can accurately be described as having "insufficient availability."”

Annual report 2024A · The company itself

“In the Faroes, we have optimised farming locations by moving sites to more exposed areas with stronger sea currents, which enhance water quality for healthier growth while minimizing seabed impact. This is also part of the strategic journey for Scotland, where we work on consolidating sites and moving them to more exposed areas.”

Annual report 2024A · The company itself

“The services segment offers various services to the Group. It manages a fleet of farming service vessels, providing fish transportation, treatments, net cleaning, heavy marine support services, and it also converts organic waste into biogas, heating, electricity, and fertilizer for external sale.”

Annual report 2024A · The company itself

“Optimal farming conditions in the Faroe Islands The Faroe Islands offer optimal salmon farming conditions, with pristine waters, strong currents, and cool, stable temperatures. These conditions ensure healthy fish growth, high welfare standards, and superior-quality salmon.”

Annual report 2024A · The company itself

“With its robust nutrient profile and low environmental impact, farmed Atlantic salmon aligns with the needs of a low-carbon, green economy, considering its low carbon footprint, low water footprint, low land use, and high share of edible yield.”

Annual report 2024A · The company itself

“Soy price risk can be related to biodiversity and ecosystems through conversion of land, or the destruction or alteration of land through weather events such as flooding, fires and droughts. Such events can cause the temporary or permanent disruption of supply chains which in turn presents a risk to soy prices.”

Annual report 2024A · The company itself

“A key driver of sustainable growth is our strategy to increase the production of large, high-quality smolt. This is achieved through expanding land-based production capacity in advanced hatcheries equipped with cutting-edge water recycling technology (RAS).”

Annual report 2024A · The company itself

“Additionally, we are investing in vessels and infrastructure to enhance fish health and survival rates. In Scotland, we have two large farming service vessel equipped with dual-treatment systems for gill health treatments and sea lice removal using freshwater only.”

Annual report 2024A · The company itself

“According to the 2018 World Resource Institute’s report ‘Creating a Sustainable Food Future’, aquaculture production would need to more than double between 2010 and 2050 to meet projected fish demand.”

Annual report 2024A · The company itself

“The growing population means an increased demand for protein. Thus, we look to grow the business in the coming years.”

Annual report 2024A · The company itself

“However, lower raw material costs are expected to support reduced farming costs in 2025.”

Annual report 2024A · The company itself

“There has been push-back in the market (e.g. retail contracts) with increased prices and inflation.”

Annual report 2024A · The company itself

“As a company primarily operating in the food sector, we recognize the growing global demand for protein driven by rapid population growth. This demand places increasing pressure on the planet, making the shift to lowcarbon, circular food systems essential to enhance protein production while minimizing environmental impact.”

Annual report 2024A · The company itself

““No product recall, No market bans, No IT security incidents” • Sustainability recommendations on all Bakkafrost-branded products • Average customer rating of >8.5 and a net promoter score above +50 • Include sustainability in CAPEX request form • Board to receive sustainability training annually • Implement use of new technology and digitalisation to contribute to operational efficiency (both regarding the salmon and environment) • Employee engagement scores above industry benchmark (provided by Peakon) • Minimum three employee events a year with focus on sustainability engagement and awareness • Reduce group absence rate to 3.9% • Reduce LTIR to below 5 • Zero fatalities • Have 10 vocational graduates from the Faroese vocational education program for salmon farmers per year by 2026 • Increase number of women in management positions (managers with direct reports) to at least 25% • Disclose gender paygap.”

Annual report 2024A · The company itself

“Bakkafrost relies on a number of resources: Shareholder capital Salmon farming is a capital-intensive business, and we rely on access to capital to ensure business growth and continuously manage operational risks.”

Annual report 2024A · The company itself

“Marine ingredient volumes follow ICES recommendations for North Atlantic species, while agri-commodities are influenced by weather, political conditions, and price volatility.”

Annual report 2024A · The company itself

“The risk of contributing to deforestation mainly lies in the areas in which Bakkafrost sources soy, which in 2024 was Brazil. The impact pertains to Bakkafrost’s FOF segment and lies in the upstream value chain, meaning that Bakkafrost is involved in the impact through its business relationships. Given that soy is a crucial component of salmon feed, this risk is closely tied to Bakkafrost's overall strategy.”

Annual report 2024A · The company itself

“Bakkafrost uses ship transport and trucking whenever possible to transport frozen and fresh products to nearby markets.”

Annual report 2024A · The company itself

“At our Applecross hatchery in Scotland, all energy will be sourced from renewable sources, including solar panels and a direct private power line to a nearby hydropower plant.”

Annual report 2024A · The company itself

“Freshwater is also an essential resource in our operations.”

Annual report 2024A · The company itself

“To address this, renewable energy sourcing and sustainable waste management are integral to our hatchery designs and investment plans. At our Applecross hatchery in Scotland, all energy will be sourced from renewable sources, including solar panels and a direct private power line to a nearby hydropower plant.”

Annual report 2024A · The company itself

“The general strike in the Faroe Islands in May and June significantly impacted raw material sourcing, delaying production and leading to lower external sales of fishmeal and fish oil.”

Annual report 2024A · The company itself