Private & confidential

Company PresentationOctober 2018

Agenda

Introduction to Arnarlax

Salmon farming in Iceland

Challenges and opportunities

Whats next?

Arnarlax in a snapshot

3

Source: Arnarlax

Largest shareholder (~41%)

~€10.2m EBITDA (2017)

#1 salmon farmer in Iceland

9,666 tons harvested (2017, HOG tons)

Licenses for 22,200 tonsApplications for 34,500 tons

Harvest profile (HOG tons)

▪ Arnarlax was incorporated in 2009 in the West Fjords, Iceland, and first harvest took place in 2016

▪ The company is vertically integrated with its own hatcheries, sea sites, wellboat, processing plant and sales channel

▪ In June 2016, Arnarlax acquired neighbour company Fjarðalax, becoming the undisputed leader in Icelandic salmon farming

▪ Several organic investment opportunities, including investing in equipment and biomass to grow with its existing licenses

▪ SalMar ASA entered into the company’s shareholder registry in 2015

Introduction

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9 6666 703

11 96813 567

17 697

23 152

2017A2016A 2018 2019 2020 2021 2022

Corporate and operational milestones

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IncorporatedIn Arnarfjörður,

West Fjords

2009

2012

First licenseAwarded farming and operation license of

3,000 tonnes

AcquisitionBæjarvik smoltbreeding facility

2012

2014

First smolt stocking500,000 fish put into the

ocean

Capital increasePrivate placement of

NOK 50 million to fund biomass growth

2014

2015

UpgradePurchases wellboat

and establishes production facility

2015

First harvestFirst invoice sent

2016

New LicensesReceives licenses for additional 10,000 MT

Acquisition and capital increaseAcquisition of Fjarðalax and private

placement of NOK 300m

2016

2017

New LicensesReceives licenses for additional 10,700 MT

SalMar entrySalMar invests into the

Company through Salmus AS

2016

Arnarlax has an integrated value chain from hatchery to sales channel

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1 Subject to board approvalSource: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

Productive fjords

Hatchery

Site application

Processing plant

Iceland

Geographical footprint

▪ Eggs are purchased from Stofnfiskur– Icelandic breeding company,

owned by Benchmark Holdings, with decades of experience in family selection to secure optimal growth of salmon in Icelandic conditions

▪ Two freshwater facilities with a combined capacity of 3.2m smolts in 2017– Bæjarvík: 100% owned by

Arnarlax, located in the West Fjords

– Ísthor: 50% owned by Arnarlax located close to Reykjavik

▪ Strategically located sites in Arnarfjörður, Tálknafjörður and Patreksfjörður with 22,200 tonnes combined capacity

▪ Processing plant located in the port of Bildudalur, within sight of the farming cages

▪ All sales done by Arnarlax and marketed as a natural and sustainable product

West Fjords

Strategically located freshwater facilities with adequate capacity

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Source: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

Facility Location Description Capacity

▪ 100% owned by Arnarlax

▪ Strategically located in West Fjords, close to Arnarlax’s seawater facilities and headquarter

▪ Production of smolt between 70 and 150 grams

▪ 50/50% owned by Arnarlax and Ice Fish Farm

▪ Production of smolt between 70 and 800 grams

▪ Geothermal waters mixed with cool freshwater providing attractive growth conditions at low costs

▪ Located near one of Europe’s largest underwater rivers

▪ New start feeding units in one hall offering the possibility to start feeding

1,72,0

20202017

+0.3

Million smolt capacity p.a.

1,5

3,0

2017 2020

+1.5

Million smolt capacity p.a.(50% of total)

Bæjarvík

Ísthor

Breiðafjörður

Unique and isolated concession portfolio in pristine waters

7

Source: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

Overview of current seawater facilities Comments

Quarterly harvest figures

Active sea site ▪ Arnarlax currently has 10 farming locations in three separate fjords.

▪ By allowing each farming site to fallow for a few months after each generation has been fully harvested, every new farming cycle starts its growth in a clear and naturally replenished sites– This technique reduces risk of biological hazards such as diseases and pests

▪ Total current production capacity of 22,200 tonnes GWT p.a.– 6 locations in Arnarfjörður with a production capacity of 11,500 tonnes GWT p.a.

– 2 locations in both Patreksfjörður and Tálknafjörður with a combined production capacity of 10,700 tonnes GWT p.a.

▪ Only one other salmon farming company with concessions in the West Fjords (Arctic Fish), enabling high biological control

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Q4’17AQ3’17AQ1’17A Q3’18F Q3’19FQ2’17A Q1’18A Q2’18F Q4’18F Q1’19F Q2’19F Q4’19F

‘000 tonnes (HOG)

West FjordsBíldudalur

Modern and efficient processing facilities with adequate capacity

8

Source: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

Overview of processing facilitiesComments

▪ Arnarlax performs all primary processing in their own facilities in Bildudalur

▪ Efficiently located in the port of Bildudalur next to Arnarlax’ headquarters

▪ Modern equipment provides consistent and high quality HOG fish

▪ Currently one processing line with an annual processing capacity of 12,000 tonnes HOG

Automatic palletising Packaging Bleeding tank

Packaging line

Arnarlax salmon has strong brand attributes

9

Source: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

Sales distribution

10

Source: Arnarlax

Freshwater (eggs) Freshwater (smolt) SalesProcessingSeawater

2017 revenue by geography 2017 revenue by product

2017 revenue by customer type 2017 revenue - contracted

60%

30%

10%

US

EU

Domestic

100%

HOG

100%

Producers anddistributors

70%

30%

Contracted

Spot

Agenda

Introduction to Arnarlax

Salmon farming in Iceland

Challenges and opportunites

Whats next?

Salmon farming in Iceland

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Source: Arnarlax, Markó PartnersNotes: 1 Only for Atlantic salmon

Production, capacity, applications and locations of Icelandic salmon farmers1

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60 57

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48

‘000 tonnes

West Fjords East Fjords

CapacityApplications Production

West Fjords

East Fjords

Locations

Salmon farming potential on Iceland validated by Norwegian industry giants

13

Source: Arnarlax, Newsweb, Norway Royal Salmon, various news articles

Overview of Icelandic salmon farmers with ownership from leading Norwegian salmon farmers

Icelandic salmon farming company

Norwegianpartner/shareholder

Ownership 41% 50% 62% 54%

Description

▪ SalMar ASA increased its exposure in Arnarlax in May 2016 through an equity capital increase– SalMar is a leading Norwegian salmon

farming company with a harvest volume of ~150k tonnes (HOG) in 2017, including 50% of Norskott Havbruk in Scotland

▪ SalMar supports Arnarlax by continously sharing operational experience and know-how, and through board membership

▪ Norway Royal Salmon ASA (NRS) acquired 50% of Arctic Fish inAugust 2016 through a directed private placement– NRS is a leading Norwegian salmon

farming company with a harvest volume of ~32k tonnes (HOG) in 2017

▪ NRS considers Iceland to be an attractive area for growth and entered Arctic Fish to capitalise on NRS’ farming knowledge to build the company and develop the Icelandic industry

▪ Recruited new CEO internally from NRS

▪ NRS supports Arctic Fish through sharing operational experience and through board membership

▪ Midt-Norsk Havbruk AS, owned by the listed company NTS ASA, invested in Fiskeldi Austfjarda (IceFish Farm) in March 2017 through a directed private placement– Midt-Norsk Havbruk is a Norwegian

salmon farming company with an annual production volume of ~15k tonnes

▪ Midt-Norsk Havbruk supports Ice Fish Farm by continously sharing operational experience and know-how, and through board membership

▪ Måsøval Fiskeoppdrett AS acquired 53.5% of Laxar Fiskeldi in June 2016– Måsøval Fiskeoppdrett is a family

owned salmon farming company located in Sør-Trøndelag with 9 concessions for salmon farming

▪ Måsøval invested in Laxar because they see a large potential for growth in salmon farming on Iceland

▪ Måsøval supports Laxar through sharing operational experience and through board membership

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2,8

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3,1

2,2

1,9

2.4

Faroe Islands

Southern Norway

Northern Norway

Finnmark

Western Fjords

Southern coastline

Northern Fjords

Eastern Fjords

Iceland has farming conditions similar to Northern Norway, which has become very competitive in recent years

14

Source: www.seatemperature.org, Lusedata, Pareto Securities Equity Research, Fiskeridirektoratet, ArnarlaxNotes: 1 Average 2002 – 2017 for Norway and average 2016 and 2018 in West Fjords

Seawater temperatures1

Annual day degrees (‘000s)

+/- 15% YoY fluctuation

Day degrees EBIT/kg

▪ West Fjords have low temperatures from November to March/April and medium temperatures during summer until fall

▪ Lower seawater temperatures compared to Finnmark from January to early summer, and higher temperatures for the rest of the year

▪ Iceland provide beneficial conditions – compensated growth in the summer time

▪ Decreasing production costs and increasing profitability for Northern Norway in line with increasing production volumes

▪ Iceland has similar farming conditions as Finnmark, illustrating the cost and profitability potential

West Fjords

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°C in water West FjordsNorway - FinnmarkNorway - Hordaland

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2006

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2008

2009

2010

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2016

2017

Norway excl. Finnmark Finnmark

EBIT/kg (NOK) Finnmark vs. other Norway for LSG, SALM, NRS and GSF

The Marine Research Institute in Iceland released a biological risk assessment

Maximum volume according to

Allowable Biomass Risk assessment Arnarlax

Tálknafjörður 1 20,000 MT 20,000 MT

Arnarfjörður 20,000 MT 20,000 MT

Dýrafjörður 10,000 MT 10,000 MT

Ísafjarðardjúp 30,000 MT 0 MT

Total West Fjords 80,000 MT 50,000 MT

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1 Does also include Patreksfjarðarflói and Patreksfjörður2 Arnarlax has applications for 10,000 tons

Protecting the wild salmon

✓

✓

Maximum volume according to

Allowable Biomass Risk assessment

Berufjörður 10,000 MT 6,000 MT

Stöðvarfjörður 7,000 MT 0 MT

Fáskrúðsfjörður 15,000 MT 7,500 MT

Reyðarfjörður 20,000 MT 7,500 MT

Total East Fjords 52,000 MT 21,000 MT

West Fjords

East Fjords

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Closed by regulation Closed by nature

To be decided

Agenda

Introduction to Arnarlax

Salmon farming in Iceland

Challenges and Opportunities

Whats next?

Structural Challenges

17

Providing neccessary infrastructure

ReykjavikSold locally to secondary processors or other end

markets

Sales & logistics overview – Temporary challenges

18

Source: Arnarlax

US

Sale

sEU

sal

esLo

cal s

ales

EUSecondary processing

USArrival in consumption

market

BildudalurFish harvest and primary

processing

ReykjavikRelocated to another

transport vehicle or sold locally

Possible alternative

Logistics link

End Market

▪ Small volume sold to local buyers (10% of 2017 volume)

▪ Typically small local secondary processors, restaurants and local retailers

▪ The local market is important for Arnarlax

NL/GB/DKRelocated to other transport vehicle

EUSold HOG to EU market

▪ All sales are done by Arnarlax’ internal sales organisation

▪ Most volumes (60%) have historically been shipped and processed in EU before flown to the US

~6 hrs

~8 hrs

~4 hrs

~4 days~8 hrs

~10 hrs

~8 hrs

Reputation of salmon farming

19

need to have or nice to have?

Opportunities

20

Whats unique about Icelandic Salmon farming

Agenda

Introduction to Arnarlax

Salmon farming in Iceland

Challenges and opportunites

Whats next?

Is Iceland the future of salmon farming?

22

UKNorway

Iceland – Potentially the next growth region within salmon farming

23

Source: Kontali, Pareto Securities Equity Research, DNB Markets Equity ResearchNotes: Iceland production assumed to reach 40,000 tonnes WFE in 2020

Expected salmon production growth by region

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& 2

02

0e

p

rod

uct

ion

(‘

00

0 t

on

nes

WFE

)

221748161

579

17

1,211

13812 22

1818866

658

20

1,422

16940

077

211

3129 3 5

79

20

17

–2

02

0e

vo

lum

e C

AG

R(%

)

2020e2017

3% 1%

-1%

3%4%5%5%7%

52%

Co

un

try

Faroe IslandsIceland Canada Ireland Chile Australia US

Iceland has a long coastline and a big potential for salmon farming

24

Source: Kontali, Arnarlax

2017 production (WFE) per region and density

17k tonnes81k tonnes 174k tonnes

1,211k tonnes12k tonnes138k tonnes

▪ Iceland has a large potential when comparing production densities to the neighbour countries Norway and Faroe Islands

▪ Iceland has already established production zones and joint fallow periods for production areas

▪ The figures above include the entire coast line for each country

Density: Production vs. coastline

Iceland vs. Faroe Islands

Faroe Islands is small compared to Iceland, even smaller than the West Fjords

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2017 production/km coastline (tonnes WFE)

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1 000

1 200

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1 600

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018e2020e

Positioned to replicate the growth model of neighbours Norway and Faroe Islands

25

Source: Kontali, Pareto Securities Equity Research, DNB Markets

Norway Iceland

‘000 tonnes (WFE)‘000 tonnes (WFE)

2017

Faroe Islands

‘000 tonnes (WFE)

▪ Iceland is positioned to leverage on experience and know-how developed over decades in other production regions, especially neighbour countries such as Norway and Faroe Islands

▪ Iceland can apply best-practice farming techniques, equipment and regulatory frameworks to support sustainable growth in future salmon farming production--

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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018e2020e

2017

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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018e 2020e

Arnarlax Iceland other2017

Private & confidential

Arnarlax HFStrandgata 1, 465 Bildudalur

Iceland