Good morning, and welcome to the presentation of Bakkafrost's results for the second quarter 2026. My name is Høgni Jakobsen.

I am here today with our CEO, Regin Jacobsen. First, a disclaimer, which I will leave for self-study.

We will follow the usual agenda today, beginning with an overview of the second quarter before we move into markets and sales, and then on to finance, operations, and finally outlook. In the second quarter, operational performance improved for Bakkafrost, with revenues increasing 16% year-on-year to DKK 1.8 billion and operational EBIT of DKK 273 million compared to DKK 65 million last year.

In the Faroes, we harvested more fish than we have ever done before in a quarter, 26,700 tgw. In Scotland, it was the opposite.

It was less than half, 55% reduction, 3,100 tgw harvested. This is a result of the de-risking strategy that we have been following while we await the new capacity to be fully utilized with large smolt in Scotland.

At our fishmeal, oil, and feed division, feed sales were relatively stable at 37,000 tons. Meal sales were zero, as we are preserving inventories to ensure that we are self-sufficient with fishmeal for our own feed production.

Currently, our stocks will enable us to produce into Q2 next year. Sourcing of marine raw material was lower this quarter, 32% reduction.

We sourced 109,000 tons. Cash from operations were DKK 273 million, compared to -DKK 204 million last year.

Finally, in May, we also paid dividends of DKK 3.45 per share. Group all-inclusive margins improved from DKK 2.82 per kg- DKK 9.12 per kg, supported by the stronger Faroes operation.

This took place in the market context with high supply, muted salmon prices, and a reduced large fish premium. The Faroes delivered DKK 15.38, up from DKK 13.15.

Scotland, on the other hand, had a negative margin of -DKK 44.12, which was impacted significantly by reduced harvest volumes, negatively affecting the dilution of fixed cost. Moving on to market.

According to the latest updates from Kontali, global supply increased 7% in the quarter ahead of the harvest growth, which was 3%. A significant volume of inventories were released in the quarter, primarily from Chile.

European harvest grew 5%, and Norway by 3%, with lower volumes in April and May, but a very strong growth in June with 15% volume growth, which also continued into July with 10% increase. Some of that volume growth is linked to biomass management within maximum allowed biomass limits.

Biology in Norway was good. Lower mortality, 2% higher harvest weights, and 4% increase on feeding.

The Faroes had a very strong quarter, with volume growth of 29%. Weights were up by 5%, and feeding also increased by 2%.

Americas reduced their harvest around 1%. Chile dropped 4%.

There is some increased competition between Coho and Atlantic salmon, so Coho is limiting production capacity for Atlantic salmon. In Canada, there was strong development, especially on the West Coast, but also some accelerated harvest due to biological issues.

Feeding in Chile and Canada were both down with 7% in this quarter. If we look at where the volumes were sold volumes increased 7%.

Demand is solid across Europe, U.S., and Greater China, with the sold volumes increasing 11%, 4%, and 17%, respectively. If we look at the U.S.

market, the local supply increased in this quarter with around 30%, corresponding to around 8,000 tgw of whole fish equivalents, mainly supplied from Canada and North America. European exports to the U.S.

declined almost 10% in this quarter, while Chilean export increased by 5%. Latin America had also strong growth, with Brazil growing with 10%.

The spot price in this quarter for superior 4kg-5 kg was DKK 74.15, broadly stable year-on-year, but 16% lower compared to the first quarter. Prices have increased now from the beginning of the third quarter, which is a bit earlier than usual.

This also has continued into August, supported by strong European demand. The large fish premium has been more or less absent for the past three quarters, but we see that that is also starting to pick up again.

With a tight supply ahead of us and a strong demand, we think that the market outlook in general looks constructive. If we then move on to the P&L.

We had stronger revenues and operational EBIT, as mentioned before. Revenues in this quarter, DKK 1.8 billion and DKK 3.5 billion for the first half of this year.

Operational EBIT year-on-year increased from DKK 65 million-DKK 273 million, and fair value adjustments were -DKK 406 million, versus -DKK 187 million last year, affecting the profit for the period, which was -DKK 161 million. Operational EBIT year-to-date, DKK 816 million, close to the full year of last year.

Earnings per share came out at DKK 2.31 in this quarter, and DKK 7.46 for the full year or year-to-date. On the balance sheet, we have a strong balance sheet, unchanged equity ratio of 58%.

Property, plant, and equipment has increased in this quarter by DKK 123 million, amounting to DKK 7.3 billion at the end of the quarter. Inventories have increased by DKK 448 million and account to DKK 1.2 billion at the end of the quarter, reflecting increased feed and raw material stocks.

Especially fishmeal inventories are high. As I mentioned before, we have security of self-sufficiency into the second quarter of next year.

Biological assets were lower in this quarter due to harvest timing, salmon prices, and overall biomass management. Cash flow from operations was DKK 273 million and DKK 727 million for the first half of this year.

Operating cash flow covered investments and dividends during the first half of this year. Investments remain focused on capacity, biological resilience, and efficiency at a similar cash flow level as in the second quarter last year.

Cash at the end of the period was around DKK 327 million. Our net debt has increased during the quarter from DKK 3.8 billion-DKK 4 billion.

The increase reflects investments, working capital, and dividend payments. Liquidity remains strong, supported by DKK 1.3 billion in undrawn bank facilities.

Also we have an undrawn accordion option. Then I will hand over to our CEO, Regin Jacobsen, to go through the operations and outlook.

Good morning. Let me start with what fundamentally differentiates Bakkafrost.

We believe that Bakkafrost has one of the most integrated value chain in the salmon industry, from feed, fresh water, to farming, harvesting, processing, and sales. This gives us in-house expertise and the ability to coordinate decisions across the business.

I think this is especially valuable now with the current feed market, where prices have risen sharply and some raw materials are less available. Through Havsbrún, our sourcing, formulation, and production expertise, supported by a strong inventory position, gives us greater flexibility to adapt and secure supply while protecting fish health and product quality.

Knowledge is shared across the value chain to improve biological performance, quality, and long-term costs. All our farming sites in the Faroe Islands and Scotland have obtained ASC certification.

The second quarter shows both sites a strong performance in the Faroe Islands demonstrates the potential of this model, while Scotland requires further improvements. This integrated operational model supports our resilience, adaptability, and long-term competitivity.

If you then look to the FOF segment, we see another strong quarter. The feed sales were broadly unchanged year-on-year, 37,400 tons.

For the first half of the year, feed sales increased approximately 6% to 72,800 tons, reflecting the strong biology growth in our operations. All feed sold during the quarter was sold internally, and this illustrates the increased strategic importance of Havsbrún and the farming operations, which continues to grow.

Marine raw materials accounted for 109,000 tons, 32% below the second quarter last year. For the first half, we sourced 161,000 tons compared to 269,000 tons last year.

Consequently, there were no external fishmeal or oil sold during the quarter. Everything went to internal use and inventory buildup.

Despite the lower sourcing, the operational EBIT increased by DKK 30 million-DKK 119 million, and the operational EBIT margin increased from 13%-20%. We are, however, seeing a clear increase in the price of marine feed ingredients.

Therefore, we don't see that our operation is insulated from this inflation. It gives us a flexibility in Havsbrún in sourcing formulation, in inventory management, and the timing of production, than most other farmers have.

So our current fishmeal inventory from sourcing in the first half is expected to support feed production into Q2 2027. Freshwater Scotland.

The key priority at Applecross remain to control, ramp up the operation. The number of smolt increased in this quarter from 0.9 million last year to 3.9 million this year.

For the first half of 2026, 4.9 million smolt have been transferred compared with 1.5 million last year. The average transfer weight at all Scottish smolt was 137 g, while smolt produced at Applecross was 219 g.

The difference reflects the mix between internally produced and externally sourced smolt. The Applecross operation is now stable.

Biosecurity has improved and is strong. Both the number of fish in the hatchery and the quarterly production are at their highest level so far.

Capacity utilization, however, has still not reached target. We are at around 35% at the moment, expected to reach full production and full stock around second quarter next year.

The operational loss was reduced from DKK 72 million last year to DKK 30 million this quarter. The key focus is consistent production, smolt robustness, and post-transfer performance.

We remain on track for total Scottish smolt transfer of 10 million this year. Applecross is expected to produce smolt between 200 and some batches up to 400 g this year, while the average for all Scottish smolts transferred this year is expected to reach 179 g.

The continued ramp up at Applecross is fundamental to reduce biological risk in Scotland. Larger and more robust smolt will shorten the marine production cycle and progressively improve both biology and costs.

The overall biological performance in Scotland was stable during the quarter. Generally good growth and improved survivability and feed conversion year-on-year.

Most sites developed well. However, a specific batch of externally supplied smolt caused biological challenges at Sgian Dubh and in Loch Striven Incident-based cost amounted to DKK 31 million, compared with DKK 39 million last year.

Although the absolute incident cost was lower, the financial impact per kilo was significant because of the lower volume harvested in this quarter. Harvest volume dropped 55% to 3.1, compared with 7,000 tgw last year.

The lower volume is a consequence of our de-risking strategy while we establish sufficient production of large, high-quality smolt. The average weight of harvested fish in Scotland, however, in this quarter was 5.2 kg.

The operational EBIT was -DKK 139 million this year compared with -DKK 127 million last year. If you turn to page 30, I can demonstrate the bridge.

If you look at the Scottish numbers, the operational EBIT per kg declined from -DKK 18 million to -DKK 44 million. Price and sales mix improved by DKK 2.6 million, but was more than offset by higher ringside cost, mortality impact, fallow costs.

We have a lot of sites that are not being used, so fallow costs are important. With 55% lower volume means that fixed costs, vessel costs, and harvesting costs are quite high compared with the volume.

Although the incident based costs were lower in absolute terms, the negative impact per kilo is very high. The biological challenges in this Loch Striven smolt batch also play a significant role.

Going back to page 20. The biomass in the sea, as we see on this graph on the bottom of the chart, is developing steady with the red curve going down.

Survivability is good at the moment, so hopefully we can see a more steady development. However, the volume will be low this year, 20,000 tgw.

Next year, we will see a much better volume, and with a better small size, we expect that will be a change in our operation in Scotland from 2027. Going to freshwater in the Faroe Islands.

The Faroese freshwater operation continued to scale and remains the foundation for the future marine growth. We transferred 5.6 million smolt in the second quarter, 4% up from last year.

First half of 2026 transfers increased by approximately 10% to 9.5. The average transfer weight in the quarter was 427 g compared with 464 g last year.

However, the average for the full first half increased to 467 g from 447 g last year. The operational EBIT was broadly stable at DKK 882 million and the operational EBIT margin remains strong at 30%.

Post-transfer survivability continues to track at high level and close to the upper end of the historical range. This is an important indication of high-quality smolt and a good focus with our teams.

We remain on track with our guidance of 20 million to be transferred this year. Operation in the new hatchery in Skálavík has been started.

We started in June with the first eggs, and we expect to release the first smolt by end of next year. This increases our smolt capacity in the Faroes from 18-24.4 million smolt of 500 g.

The focus is large smolt, robust smolt, shorter production cycles at sea, which lower the biological exposure and more efficient utilization of farming sites, which we also now see start to evolve in the Faroes. Turning to farming Faroes.

The Faroes farming operation delivered a strong operational quarter. Volume increased by 67% to 26,700 tgw, compared with 16,000 tgw last year.

The average weight increased 11% to 5.5 kg. The operational EBIT increased from DKK 4 million last year to DKK 109 million this quarter.

The operational EBIT per kilo was DKK 5.96, compared with DKK 0.37 last year. Ringside costs were reduced by approximately 4%, from DKK 31.10-DKK 29.96 per kg.

The EBIT bridge on page 30 shows lower ringside cost of DKK 266 million and price impact of DKK 115 million. Strong biology, higher harvest weights, and 67% higher volume provided better throughput and more efficient cost absorption.

That is the bridge from DKK 0.24-DKK 4.06 in the Faroes. The biomass in the Faroes is around steady at 51,500 tgw, but quarterly feeding is increased by 5%.

Sea lice are well controlled, mortality remains low, and improved planning of stocking and fallowing periods is contributing to shorter cycles and more efficient farming operation. In the first half, we have harvested 51,900 tgw, which is 54% of the full year guidance of 97,000 tgw.

The services in the Faroes had a high activity and delivered a strong financial result increasing to DKK 35 million from DKK 17 million last year, and a 15% margin up from 8% last year. The segment includes fish transport, fresh water treatment, farming support, harvesting, packaging, and waste to biogas production.

These activities are not only standalone services, they are essential enablers for the biological operational performance of our farming operation. Our dual fresh water treatment vessels continue to provide efficient treatment of sea lice and gill-related challenges.

As biomass activity increases, utilization of these vessels are also improved. Going to the sales and other segment, VAP.

We had a strong quarter. Revenues increased 30%, or the volumes increased 30% to 29,900 tgw.

Whole fish are 21%, while volumes to VAP in Faroes increased by 71% to 6,600 tgw. The VAP share of the Faroese volumes increased slightly to 25%, compared with 24% last year.

Revenues increased 34% to almost DKK 3 billion, and operational EBIT increased DKK 17 million-DKK 114 million. Operational EBIT per kilo declined from DKK 6.55-DKK 5.60.

This reflects the higher global availability of superior quality and large salmon, which continue to put pressure on prices and premiums. Our geographical diversification continued.

For Faroese salmon, the share of sales to the North American market increased to 31% share, which is probably the highest. The share to Asia increased to 15%.

The share in Western Europe declined from 52%-47%. The Scottish sales mix was more concentrated in Europe during this quarter.

This reflects also the drop in volume in Scotland in this quarter. Going to outlook.

We see limited supply growth going forward. Global harvest volumes increased in this quarter approximately 3%, while the volume supplied to the market increased by 7%.

The difference was mainly related to inventory movements. The supply growth comes on top of the 18% last year.

This is a quarter with a high volume, especially because of the 18% last year. The supply outlook is now more balanced, with only 1% growth in global harvest volumes in the second half of 2026 versus last year.

Especially the Americas harvest volumes are expected to decline by around 10% in the second half of the year, mainly reflecting the development in Chile. Global supply is expected to remain limited in 2027, constrained by biological regulation capacity limitations.

Smolt transferred in Norway seems to be going slightly down next year or this year compared with last year. Together with continued demand growth, this should gradually tighten the market balance and provide stronger support for salmon prices.

Demand remains strong and broad-based across markets, particularly in Asia and Europe, but we also see a strong demand in U.S. Lower salmon prices are stimulating consumption, while underlying structural demand continues to grow.

Combined with moderate supply growth, this supports a progressive tighter market balance. With supply growth normalizing and demand remaining strong, the market balance is expected to tighten progressively and support stronger prices going forward.

Our guidance for this year remains on 117,000 tgw, 97,000 tgw from Faroes and 20,000 tgw from Scotland. We have in the first half delivered 61.2, corresponding to 52% of this volume, so 48% remains.

The Faroese operation at 51.9. The remaining Faroese harvest is relatively evenly distributed in the third and fourth quarter.

A bit more in the fourth. Scotland harvest at 9.3 in the first half, and therefore a bit more in the second half.

At the moment, 6.8 are planned for fourth quarter. We also maintain the smolt guidance of 20 million in the Faroes and 10 million in Scotland.

For 2026, we intend to have contracts covering approximately 15%-25% expected combined harvest volume. This provides some revenue visibility while retaining meaningful exposure to the spot market.

We expect lower production volumes for fishmeal and fish oil compared with last year, primarily due to lower availability of raw materials. Feed production is expected around 175,000 tgw, which is up from last year.

The guidance remains dependent on biological environment and market developments. Based on the strong Faroese performance, the Applecross ramp up on the biomass development in Scotland, we currently maintain the volume guidance.

Our DKK 5 billion investment program remains unchanged. There are some delays in some of the plans also because of the market development in 2026 and 2025, which has been a bit weaker than expected.

But our target remains at 145,000 tgw in 2028 and 162,000 tgw by 2030. The program includes DKK 2.2 billion investment in the Faroes, DKK 1.3 billion in Scotland and DKK 1.6 billion of shared farming services.

In the Faroes, the main components remaining are the scallop hatcheries and the feed capacity. In Scotland, the investments are covering investments in increased capacity of processing and general farming assets.

For the full period, we remain our guidance on investment. Thank you.

That's all, and then we are open for questions.

Hi. Alex Aukner, DNB Carnegie.

In terms of the meal inventory you have until Q2 2027, is the volume significantly higher than normal, or is it because of the changed formulation that you now have a longer runway? What is the status on the fish oil as well?

We have enough inventories of fishmeal and oil to cover our needs until into the second quarter next year. We have, as you know, been focusing on keeping this volume for ourselves also because of this issue or the question about certification.

That was also one of the drivers. Now we see also this price development.

The volume is high, probably not higher than it has been some other years before at the same time. At the end of the quarter, we had more or less full inventory.

You saw also in our balance sheet that the value of our fishmeal and oil was significant. I think it was around 75% of the total number, at cost price, of course.

As I mentioned earlier, we see that we are now in a situation which is very dramatic on the cost of raw materials, therefore we need to do some changes. We are coming from a very high number, and with our new capacity now coming up available with our expanded new feed line, we have better ability to mix and flex between raw materials.

So we are introducing new raw materials into our feed formulation. That will give us a better balance in our cost to take costs down.

So the strategy now is that we still want to have a very high inclusion of marine ingredients in our salmon to cover the needs of our fish and to make sure that we have a product which is originating from Faroe Islands, which is special with Faroes raw materials. We need to balance raw materials as market prices are very different than we ever have seen before.

Therefore, our goal is to balance our feed cost going forward with more or less similar feed cost as before.

Okay. Does that mean that your 2027 cost is going to be in line with what we are currently seeing?

Is that how I should interpret that?

More or less.

Okay. Thank you.

Christian Nordby, Arctic Securities. You have said this quarter and before as well that the externally sourced smolt in Scotland was the problem.

Why do you then stock 1 million more external smolt in Q2 year-on-year?

Good question. We have, as you said, had big issues with externally delivered smolt.

However, there have been good batches in between. We see much lower regularity, so there is a bigger variation.

Apparently, as you see, we are creating losses with this externally sourced smolt. We have reduced the externally sourced smolt compared to our plan.

We have taken out batches that we think are not good, but we have maintained batches that we think are good. So we have a high focus on only sourcing good batches, and there is a combination of volume.

As you see in this quarter, for example, we have a positive EBITDA contribution, so it is also about volume. We also need to come back to 40,000 tgw or 50,000 tgw.

At the moment, we have a plane that is stalling because we are reducing speed too much. We need to come up in speed.

As Applecross is now coming to full capacity next year, we expect that Applecross and internally delivered smolt should be above 10 million, probably somewhere. Hopefully 12 million smolt, which will cause a good operation.

So the combination of good internally large smolt, robust fish, and hopefully better batches of external smolt must contribute to this development. So hopefully we are better to select the good batches.

Thank you. During Q3, we have seen that Faroe Islands has gotten zero tariffs to the U.S.

Should we expect a lot more sale that direction in Q3 and onwards?

Yes, we are increasing our sales to the U.S. You see it in the second quarter, and you will also see it going forward that we are increasing our share.

This is not just because of the tariffs. This has been a strategy for ourselves that we have had very high focus on sales in the U.S.

because in the U.S. is where we have the best presence in the market, best penetration, best branding of our products, and therefore also best margins.

Thank you.

Martin Kaland, ABG Sundal Collier. On the feed price that you talk about, is it possible to just look at how much more you pay for the blue whiting and comment on that?

If that, how much that increases your raw material cost on fishmeal, fish oil? Because I guess it's lower than the spot prices we'll see, but is it possible to comment on that?

Well, we are not in the season at the moment. The season for blue whiting catches are normally from December to May, June.

So everything that we need now has been produced in the first and second quarter. Then we start a new season in end of fourth quarter.

So you are absolutely right. That's the data point.

For Q1 and Q2, how much more was the raw material cost up on fishmeal, fish oil for you?

Yes. That you can see in some statistics.

I don't have the number, but I think the main question is what will it be next year? I don't know.

If the blue whiting loses its certification, do you have a plan B? What would that look like?

Well, the plan A was to build big inventories, which we have done. Therefore, we have sufficient of certified meal until we are reaching into the second quarter.

Then during this phase, we have several options that we will stick for ourselves.

Okay. Thank you.

No further questions? Thank you very much.