BAKKA: Strong Faroese performance, progress in Scotland and tight market ahead

The Bakkafrost Group delivered a total operational EBIT of DKK 128 million (DKK
22 million) in Q3 2026

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

Strong Faroese biology drove harvest volumes up 24% year-to-date, while FOF more
than doubled operational EBITDA. Scotland's large-smolt strategy shows progress.

The performance in Q3 2026 per region was as follows:

  - Faroe Islands              Revenues of DKK 1,436 million (1,405 million)

                                   Operational EBIT of DKK 267 million (227
million)

  - Scotland                      Revenues of DKK 245 million (282 million)

                                Operational EBIT of DKK -140 million (--205
million)

Commenting on the result, CEO Regin Jacobsen said:

"Bakkafrost continued to deliver strong biological performance in the Faroe
Islands during the third quarter, with good growth and high biomass at sea.
Harvest volumes for the first nine months increased by 24% compared to last
year. While harvesting smaller farming sites contributed to higher unit costs in
the quarter, the underlying biological and operational performance remains
solid.

Our Faroese freshwater operations continue to perform well, with record-high
capacity utilisation. The new Skálavík hatchery is progressing according to
plan, and the first two batches of eggs are performing well. Combined with the
expansion of our broodstock programme, this strengthens our foundation for
further growth and improved efficiency.

The FOF segment delivered particularly strong results, with operational EBITDA
more than doubling compared to last year. Our integrated value chain also
provides flexibility to mitigate increasing marine raw material costs through
sourcing and feed optimisation, supporting our overall cost competitiveness.
Following the increased 2027 quota recommendations for blue whiting, we expect
higher marine raw material sourcing and increased external fishmeal sales in
2027. We also expect feed production to increase to approximately 185,000
tonnes.

In Scotland, we are seeing encouraging signs from our large-smolt strategy, with
these fish demonstrating superior growth and survivability. Nevertheless,
results remain affected by low harvest volumes, smaller harvest weights and high
unit costs. To reduce biological risk, we have decided to discontinue external
smolt sourcing and focus on our own freshwater production. This is possible
because the new facility at Applecross can now supply significantly larger
volume of smolt . At the same time, the continued ramp-up of Applecross is
driving rapid reductions in freshwater production costs as capacity utilisation
increases. These developments are important steps towards a more predictable and
efficient farming operation.

Despite increased global salmon supply, demand has been remarkably strong. The
premium for larger fish normalised towards the end of the quarter, and we have
strengthened our position in the strategically important US market. With global
supply expected to decline in Q4 and growth remaining limited in 2027, we see a
more favourable market balance ahead.

For 2026, we increase our smolt release in the Faroe Islands to 20.7 million
while maintaining our harvest guidance of 117,000 tonnes for the group. For
2027, we expect 97,000 tonnes in the Faroe Islands and 28,000 tonnes in
Scotland, totalling 125,000 tonnes. Our focus remains on strong biology,
improved cost efficiency and disciplined execution of our strategy to support
sustainable growth and long-term value creation."

During Q3 2026, the FOF segment sourced 9,587 tonnes (39,940 tonnes) of raw
material. The Operational EBIT margin was 24% (12%), and fish feed sales
amounted to 48,237 tonnes (49,087 tonnes).

For the first nine months of 2026, the FOF segment's operational EBIT margin was
21% (13%). During the first nine months of 2026, Havsbrún sourced 170,217 tonnes
(309,393 tonnes) of raw material.

In Q3 2026, the Freshwater segments in the Faroe Islands and Scotland
transferred a total of 7.4 million (8.4 million) smolts combined:

  - Freshwater FO:                    4.5 million (4.8 million),
  - Freshwater SCT:                  2.9 million (3.6 million).

For the first nine months of 2026, the freshwater segments have released a total
of 21.8 million (18.5 million) smolts:

  - Freshwater FO:                 14.0 million (13.4 million),
  - Freshwater SCT:                  7.8 million (5.1 million).

In Q3 2026, the Freshwater FO segment made an operational EBIT per kg
transferred smolt of DKK 32.34 (DKK 40.71), corresponding to NOK 47.31 (NOK
64.34). The Freshwater SCT segment made an operational EBIT per kg transferred
smolt of DKK -28.37 (DKK -66.88), corresponding to NOK -41.50 (NOK -105.70).

The Farming segments achieved higher prices in Q3 2026 than in Q3 2025. The
Farming segments had lower volumes in Q3 2026 compared to Q3 2025. In Q3 2026,
the Farming SCT segment had incident-based costs of DKK 42 million (DKK 70
million).

The total combined harvest in Q3 2026 of the farming segments in the Faroe
Islands and Scotland was 27,634 tonnes gutted weight (30,678 tgw):

  - Farming FO:           23,097 tgw (25,392 tgw),
  - Farming SCT:           4,537 tgw (5,286 tgw).

For the first nine months of 2026, the farming segments have harvested a total
of 88,865 tonnes gutted weight (78,932 tgw):

  - Farming FO:           74,985 tgw (60,326 tgw),
  - Farming SCT:         13,880 tgw (18,606 tgw).

In Q3 2026, the Farming FO segment made an operational EBIT per kg of DKK -0.34
(DKK -1.13), corresponding to NOK -0.50 (NOK -1.78). The Farming SCT segment
made an operational EBIT per kg of DKK -30.49 (DKK -36.09), corresponding to NOK
-44.60 (NOK -57.04).

The Services segment made an operational EBIT per kg of DKK 1.02 (DKK 1.25),
corresponding to NOK 1.49 (NOK 1.97). The operational EBIT margin for the
segment was 12% (15%).

The Sales & Other segment had a revenue of DKK 2,641 million (DKK 2,462 million)
and an operational EBIT margin of 2% (3%). The operational EBIT per kg was DKK
2.24 (DKK 2.37), corresponding to NOK 3.28 (NOK 3.75).

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.

OUTLOOK AND OPERATIONAL PERFORMANCE

Market

Increased supply in Q3 2026

The supply of salmon increased 6.9% in Q3 2026 compared to Q3 2025, including
inventory movements. Without inventory movements, the supply increase was 4.8%,
according to the latest estimate from Kontali Analyse.

Slightly lower salmon prices in Q3 2026

Salmon reference prices (in NOK) for 4-5kg superior salmon were 0.6% lower this
quarter compared to Q3 2025, however in EUR the reference prices increased YoY.
Compared to previous quarter (Q2 2026) prices were 15.7% lower in this quarter.

Reduced supply in Q4 2026 and low supply growth in 2027

In Q4 2026, the global supply is expected to reduce 3% YoY, excluding inventory
movements. In H1 2027, global supply is expected to be on the same level as in
H1 2026, increasing to around 2% supply growth YoY in H2 2027.

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, Middle East and Asia.

Operations

Farming Faroe Islands

The Faroese farming operations continued to deliver strong biological
performance in Q3 2026, although slightly weaker than last year, which in terms
of biological performance was the strongest year in 10 years. At the end of Q3
2026, biomass at sea remains high, supported by robust growth and rapidly
increasing feeding rates through the quarter.

The continued transition towards larger, high-quality smolt is contributing to
shorter production cycles, improved production efficiency and stronger
biological control. More efficient management of fallow periods is also
supporting improved utilisation of the farming sites.

Harvest volumes in the Faroe Islands were lower in Q3 2026 than in the same
period last year, reflecting the timing of the harvest cycle. For the first nine
months of 2026, Faroese harvest volumes increased to around 75,000 tonnes gutted
weight, compared with around 60,000 tonnes in the same period in 2025.

Freshwater Faroe Islands

The Faroese freshwater operations continue to develop positively, with
production and capacity utilisation increasing across the hatcheries. Overall
capacity utilisation across the Faroese freshwater hatcheries is currently at an
all-time high, supporting higher output and improved utilisation of the Group's
freshwater infrastructure.

Construction of the new hatchery in Skálavík is ongoing and on track to be
completed towards the end of 2027 and within budget. Two batches of eggs have
now been introduced into the hatchery with good performance to date and the
first batch is expected to be transferred to sea in Q4 2027.

Upon completion, Skálavík will contribute to increasing total freshwater
capacity in the Faroe Islands to approximately 24.4 million smolt at 500 grams,
compared with current capacity of around 18 million smolt. The continued
development of freshwater and broodstock capacity supports the production of
larger, high-quality smolt and strengthens biological control throughout the
value chain.

The broodstock programme is also being expanded, increasing Bakkafrost's
capacity towards self-sufficiency to produce eggs, hereby strengthening control
over the genetic foundation of the production. The hatcheries are now beginning
to receive eggs from so-called "elite fish", where both parents have the desired
genetic traits.

Farming Scotland

The Scottish farming operation remains in a transition phase. Q3 2026
performance was affected by low harvest volumes, small average harvest weights
and the under-utilisation of fixed-cost infrastructure. The average harvest
weight was negatively affected by the biological challenges reported in the
previous quarter at two farming sites, where a batch of externally supplied
smolt was challenged. The early harvesting of these sites continued into the
third quarter and contributed to the lower average harvest weight. Towards the
end of the quarter, exceptional mortality was primarily recorded at sites
harvested out in September, however also with impact on Q4 2026.

At the same time, overall biological performance is improving with lower
mortality than in the same quarter last year. Also, the larger-smolt cohorts
continue to show improved growth, survivability and biological performance. The
proportion of larger fish in the biomass is increasing, although legacy biomass
and externally sourced smolt will continue to affect near-term results.

The focus remains on strengthening biological control, reducing fallow costs,
improving site utilisation and increasing harvest weights. The benefits of the
larger-smolt strategy are expected to become increasingly visible from 2027
onwards.

Freshwater Scotland

The ramp-up of the freshwater operation at Applecross continues, with a focus on
biological stability, operational predictability and the production of larger,
high-quality smolt. Smolt stocking is progressing broadly in line with plan, and
the operation remains on track to deliver the planned 2026 transfer programme.
Smolt quality is increasing and production costs decreasing rapidly as capacity
utilisation increases.

Applecross smolt transferred in Q3 had an average weight of approximately 221g,
which is 3% lower than in Q3 2025. The average smolt weight for all Bakkafrost's
smolt release in Scotland in the quarter was 166g, which is 7% higher than in Q3
2025. The continued ramp-up of the Applecross hatchery is an important part of
strengthening the biological foundation of the Scottish farming operation and
reducing biological risk over time.

Services

Bakkafrost's freshwater dual-treatment service vessels continue to play a vital
role in ensuring good fish welfare and efficient sea lice removal through
freshwater treatments. As biomass grows, capacity utilisation of these vessels
is increasing, supporting stronger biological control and operational efficiency
across the marine farming operations.

The Group's large, rebuilt farming service vessels for smolt transport are
securing efficient and fish-welfare-friendly smolt transfers in both the Faroe
Islands and Scotland.

Smolt transfer

Bakkafrost's expected smolt transfer in 2026 in the Faroe Islands is increased
to around 20.7 million smolts with an average weight of around 440g. In 2027,
the expected smolt transfer in the Faroe Islands is expected to increase to 21.0
million smolts of around 440g.

In Scotland, the smolt transfer in 2026 is expected to be around 10.0 million
smolt with an average weight of 179g. This includes internally produced smolt as
well as externally sourced. In 2027, the expected smolt release in Scotland is
expected to increase to 11.5 million smolts of around 222g. This is lower than
previously planned due to a decision to stop using external smolt to reduce the
risk in the marine farming operation. Going forward, Bakkafrost will only rely
on it's own freshwater hatchery capabilities and broodstock partnerships in
Scotland.

The number and average weight of smolts transferred are key elements of
predicting Bakkafrost's future production.

Million smolt transferred  '27e  '26e   '25   '24   '23
FO                         21.0  20.7  18.7  17.1  14.2
SCT                        11.5  10.0   7.3   6.0   9.0
Avg. weight (g)
FO                          440   440   453   410   396
SCT                         222   179   154   109   117

Harvest

In 2026, the harvest in the Faroe Islands is expected to be around 97,000 tonnes
gutted weight, an increase from the original guiding of 92,000 tonnes. In 2027,
the harvest in the Faroe Islands is expected to be 97,000 tonnes gutted weight.

In 2026, the harvest in Scotland is expected to be around 20,000 tonnes gutted
weight, increasing to around 28,000 tonnes gutted weight in 2027.

In total, the harvest in 2027 is expected to be around 125,000 tonnes gutted
weight, compared to around 117,000 tonnes in 2026. The expected quarterly
harvest profile 2027 is outlined in the table below:

Region  Q1   Q2   Q3   Q4
FO      22%  22%  26%  29%
SCT     19%  14%  31%  35%

The estimates for harvest volumes and smolt transfers in both geographies are
dependent on biological development. Biological, environmental and market
conditions can affect the expected harvest profile.

Sales & VAP (Value added products)

Bakkafrost's flexible value chain, including state-of-the-art VAP processing
capacity, enables the Group to adapt to changes in market dynamics and other
factors that may affect commercial risk. This flexibility supports balanced
allocation between spot sales, contracts and value-added production.

For 2027, Bakkafrost intends to sign contracts covering approximately 15-25% of
the expected combined harvest volumes in the Faroe Islands and Scotland.

FOF (Fishmeal, oil and feed)

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

The ICES 2027 recommendation for blue whiting is 1,064 thousand tonnes, which
represents a 25.0% increase from the recommendation for 2026.

In 2027 Bakkafrost expects higher production volumes of fishmeal and fish oil
compared to 2026. Consequently, Bakkafrost expects higher external sale of
fishmeal in 2027.

Bakkafrost has great flexibility to adapt feed formulations to changing market
conditions. As raw material prices for feed have increased recently especially
impacting marine raw materials, Bakkafrost has adapted the feed formulation to
mitigate feed cost increases. However, despite these changes, Bakkafrost still
maintains its premium position with a high share of marine content in the feed.
Also, Bakkafrost has large quantities of fishmeal inventories sufficient to
support feed production into Q2 2027.

Bakkafrost increases the expected feed production from 170,000 tonnes to around
185,000 tonnes in 2027. Close to all of this will be sold internally to
Bakkafrost's Faroese and Scottish Farming segments.

Investments

On the Capital Markets Day on 17-18 June 2025, Bakkafrost announced a 5.0bn DKK
investment plan for 2026-2030. The main purpose is to reduce biological risk,
improve efficiency and enable continued sustainable growth in the Faroe Islands
and Scotland.

The investments in the Faroe Islands will increase the annual smolt production
capacity to 24.4 million smolt of 500g. The feed production capacity and
flexibility are also increased to further improve R&D capabilities and meet the
growing demand for feed as harvest volumes increase in the Faroe Islands and
Scotland. Also, investments in new farming sites and new farming technology are
included, as well as investments to improve harvest capacity and flexibility.

In Scotland, planned investments include site expansions and optimisation as
well as building a new harvest and processing facility to accommodate the
growing harvest volume.

As a shared service to the Group, the investment plan includes building new dual
-freshwater treatment vessels in the FSV segment.

Incorporated into the investment plan is also 245mDKK earmarked to energy
transition, spread across the value chain.

With the investment plan, Bakkafrost expects to sustainably grow the total
annual harvest volumes to 162,000 tonnes in 2030.

Since the announcement of the 2026-2030 investment plan on the CMD in 2025,
Bakkafrost has decided to let some of the investments planned for 2025 rollover
into 2026 due to the weak market outlook for 2025. Consequently, the timing of
other investments in the announced 2026-2030 plan have been adjusted.

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 Q3 2026 report and the Q3 2026 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 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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Copies of this announcement are not being made and may not be distributed or
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FOR RELEASE\, PUBLICATION OR DISTRIBUTION\, IN WHOLE OR IN PART\, DIRECTLY OR\
INDIRECTLY\, IN AUSTRALIA\, CANADA\, JAPAN OR THE UNITED STATES.\
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This press release does not constitute or form part of an offer or solicitation\
to purchase or subscribe for securities. The securities referred to herein may\
not be offered or sold in the United States absent registration or an exemption\
from registration as provided in the U.S. Securities Act of 1933\, as amended.\
Copies of this announcement are not being made and may not be distributed or\
sent into the United States\, Australia\, Canada or Japan.\