3Q14 update Share Price: NOK 14 ( ) 4 November 2014 Target: NOK 18.6 (17.5) Source: Fondsfinans Research, Havfisk ASA

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1 Havfisk ASA BUY 3Q14 update Share Price: NOK 14 ( ) 4 November 2014 Target: NOK 18.6 (17.5) Share data (NOK m) 4 Nov 2014 Sector Fisheries Reuters/ Bloomberg HFISK Risk rating Medium risk Outst shares (m) 84.6 Market cap NIBD Enterprise value Free float % 15 % Av volume (thous) 34 High/ low 52w 14.5 / 6.9 Weight OSEAX % Rel. Perf % (3/6/12 mts) 15/ 28/ 99 Abs. Perf. % (3/6/12 mts) 12/ 28/ 109 HFISK last 12 months 120% 100% 80% 60% 40% 20% 0% -20% nov.13 jan.14 mar.14 mai.14 jul.14 sep.14 nov.14 Prepared by analysts: Bent Rølland Fondsfinans AS TEL: br@fondsfinans.no Philip M. Scrase Fondsfinans AS TEL: ps@fondsfinans.no OSEBX HFISK DOM White fish prices climbing Potential fleet restructuring from 2H15 lowering long term cost HFISK reported 3Q revenues of NOK 296m, up from NOK 189m last year (+56% Y/Y). EBITDA came in at NOK 85m vs. NOK 45m last year (+89%) while harvesting went up by t from t last year to t (+20% Y/Y). The company harvested t cod, up 6% Y/Y. In 3Q white fish prices on average went up by around 30% Y/Y. For 4Q, the remaining cod quota is t ( t last year). On average 4Q fishing volumes will go down Y/Y, and we forecast prices to continue to climb white fish quotas (TAC) in The Barents Sea are settled down by around 9%. We assume more domestic Russian white fish consumption due to the European food ban. In total, we increase 2015 cod prices equal to NOK 21/HG kg (up from NOK 16.5/HG kg for 2014). The Norwegian Government has proposed to increase the number of maximum allowed quotas from three to four per trawling vessel. Given that the proposal will be implemented, five HFISK vessels should be much more efficiently utilised, allowing sale of three smaller trawlers. Sale revenues from the vessels should be around NOK 100m and annual overhead savings should be significant. We have implemented new more flexible fishing rules from 2H2015 (previously 1Q15). At 3Q HFISK sold the first vessel Rypefjord for NOK 41m. The sales revenue will be 4Q booked when the vessel will be handed over in November. We estimate 2015 EBITDA of NOK 434m, up from NOK 331m for Further, we estimate 2015 NIBD of NOK 508m after selling Rypefjord and The Hammerfest processing plant (non-core asset as the plant will be moved to Forsøl). We adjust SOTP target from NOK 17.5 to NOK 18.6 per share and reiterate our buy recommendation. Key figures (NOKm) E 2015E 3Q13 4Q13 3Q14 4Q14E Total revenues Op cost EBITDA EBITDA-margin 9 % 27 % 24 % 27 % 32 % 37 % 24 % 36 % 29 % 44 % EBIT PTP EPS EPS adj DPS NIBD Cod Saithe Haddock Halibut, praw ns, redfish Total fishing (H/G) Fishing volumes Y/Y 9 % 11 % -1 % 1 % 5 % -8 % -7 % 41 % 20 % -18 % EBITDA/kg Av. cost/hg kg EV/ Sales EV/ EBITDA EV/EBIT P/E adj n.m P/B Source: Fondsfinans Research, Havfisk ASA FONDSFINANS AS, HAAKON VII S GATE 2, P.O. BOX 1782 VIKA, NO-0122 OSLO, TEL: , FAX: , mail@fondsfinans.no This report was prepared by an analyst engaged by Fondsfinans AS, the Norwegian affiliate of Fondsfinans Inc., who is not registered as a research analyst with FINRA or subject to FINRA rules governing research. See page 9 of this report for Important Disclosure Information.

2 Market outlooks Cod prices continue to climb (both first hand and export prices) The tables below sum up Norwegian export of H/G cod in tonnes (FOB prices measured at the Norwegian border). The market is responding positively. Week 43: Cod price around NOK 27.8/kg vs. NOK 23.3/kg for week 34. Cod convert. ratio: 1.5 Average first hand prices for Norwegian cod landings are moving up. October prices are significantly above September prices. The average price for October 2014 is up around NOK 3 Y/Y. As 2015 cod quotas are down by 10% (equal to around HG t), we forecast even higher cod prices for In addition, we forecast more domestic consumption of white fish in Russia as a result of the food ban from Europe. Average 2014 HFISK first hand cod price should be around NOK 16.5/HG (70% freeze and 30% fresh volumes). We forecast an average 2015 HFISK cod price of around NOK 21/HG kg (up from NOK 17.8/HG in last note). Fish quality should also be better Y/Y as all 3 new vessels will be in full year operations. These vessels have modern freeze technology. Page 2 4 November 2014 Fondsfinans Research

3 The Norwegian/Russian commission approved the quota advice from the scientists 2015 quotas are now set Cod quotas down 10% Y/Y => The market could over time, turn demand driven New vessels saving fuel and NOX tax. 3Q14 grant of NOK 25m The table below indicates white fish quota developments White fish prices are set to climb White fish quotas for 2015 are down 8% on average (see the table below). White fish quotas, wfe t (TAC) /11 13/12 14/13 15/14 Cod (>62) % 33 % -1 % -10 % Haddock (>62) % -24 % -20 % 0 % Saithe (open) % 3 % -23 % -8 % Black halibut % 0 % -5 % 0 % Total quotas % 15 % -6 % -8 % The New HFISK trawling vessels, Gadus Poseidon, Njord and Neptun delivered and paid (full cost effect from 2015 when the Government increase Maximum Allowed catch from 3 to 4 quota per vessel) In September 2011, Havfisk announced that it had ordered the building and equipment of three new trawlers at STX OSV AS (Vard) in Romania and Norway (Vard Brattvåg). The first trawler, Gadus Poseidon, was delivered in 2Q13. Gadus Njord entered fishing in November 2013 and Gadus Neptun was delivered in March According to HFISK, the new trawlers consume at least 20% less fuel compared to current vessels consuming 13,000 litres of fuel per day. The purchase of the vessels is fully funded in 2 banks x 15.6m trawlers + double hull Hulls built at Vard in Romania and equipped at Vard Brattvåg at Sunnmøre All 3 vessels in the Barents Sea in 4Q14 for Fondsfinans Research 4 November 2014 Page 3

4 the first time (3Q: one vessel at Greenland) Overview of present HFISK vessels We have included additional vessel values on the company equal to around NOK 1.3b HFISK fleet restructuring. From 10 to 8 vessels longer term when turning to max. 4 (3) quota per vessel Havfisk ASA - Vessel and quota overview after potential 2015 restructuring (EV vessel of NOK 1.35b) No. Fishing vessel EV Trawler Built/modernized Gross ton Licences Cod Saithe Haddock Redfish Prawn Halibut N. Sea Nordfjordtrål (sold at 4Q12 - NOK43m) 0 Combi Rypefjord (ex Skaidi). 4Q14 sold (41m) 0 Combi 2001/ x x x x Fresh tow ards Forsøl 1 Doggi (ex. Soløyvåg) 30 Combi 2001/ x x x x Fresh towards Forsøl Hammerfest Industrifiske AS 60% 18 Shareholder agreement Vestind II (ex Kongsfjord) 50 Freeze 2000/ x x x Could carry 4 quotas Hekktind (sold to Russia, NOK 46m) 0 Combi Gadus Njord 240 Freeze x x x Into 4q13 fishing 4 K. Arctander 30 Combi 1995/2000/ x x x Stamsund (for sale) 25 Fresh Havtind II (ex Polar Amarog) 70 Freeze 1997/ x x Could carry 4 quotas x Nordland Havfiske AS 100% Båtsfjord 60 Combi 1999/ x x x 7 Gadus Poseidon 240 Freeze x x x Into3q13 fishing x 8 Gadus Neptun 240 Freeze x x x Into 2q14 fishing x Kongsfjord II 40 Combi 1996/ Jergul (transaction on hold) 1 Fresh Transaction on hold - term sheet terminated Finnmark Havfiske AS 97.62% 11.5 SOTP HFSIK trawler values NOKm Total cod and haddock quotas Additional North Sea quotas Source: Havfisk ASA/Fondsfinans Research Sale of 1.38 Cod quotas to the Finnmark company Hermes, terminated at 2Q 2014 The buyer was Hermes (local Finnmark player) Sale valuing cod quota to around NOK 72m per quota equivalent (these are free quotas) As a part of the transaction, Havfisk at 4Q13 sold its oldest vessel, the 41 year old Jergul, with cod, haddock and saithe quotas. The sale included 1.35 quotaunits for cod and haddock and 1.38 quota-units for saithe north of the 62 parallel, and 1.0 quota units for saithe south of the 62 parallel. The agreed purchase amount for vessel and quota was NOK 113.6m, where the vessel is valued at NOK 1.6m. The sale was planned to be closed at 2Q14. However, the sale was subjected to approval from The Norwegian Government. At the end of 2Q such approval from the Government was not granted. Consequently, the transaction was terminated. The HFISK management has, however, indicated that the parties could still reach an agreement later on if an approval from the Government will be given. YTD no approval has been given. Updated HFISK estimates (quarterly numbers) First hand prawn prices: around NOK 22/kg. Black halibut: NOK 25/kg 3Q EBITDA of NOK 5.4/kg (vs. NOK 2.6/kg last year) HFISK, landing volumes H/G 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14E 1Q15E 2Q15E Cod Saithe Haddock Prawns Redfish, black halibut Total HFISK Total landings Y/Y -19 % 5 % -6 % -18 % -7 % 41 % 20 % 3 % 20 % -18 % -9 % -12 % Cod landings Y/Y 24 % 9 % -19 % 110 % 49 % 67 % 28 % -39 % 6 % -23 % -10 % -10 % Landing prices H/G 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14E 1Q15E 2Q15E Cod price/kg H/G Saithe price H/G Haddock price H/G Av. HFISK first hand price Harvesting cost/kg Harvesting cost/kg Y/Y Cost/kg Y/Y, pst 0 % -20 % -19 % -4 % 9 % -5 % -8 % 38 % 22 % 23 % 29 % 14 % EBITDA/kg Vessels in operation HFISK, NOK m 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14E 1Q15E 2Q15E Revenues EBITDA EBITDA-margin 17 % 27 % 24 % 20 % 24 % 36 % 32 % 21 % 29 % 44 % 43 % 28 % EBIT CFop Inventories NIBD* Source: HFISK/Fondsfinans Research*) 3Q14 NIBD includes provision for trial at Iceland (NOK 173m) Page 4 4 November 2014 Fondsfinans Research

5 The image part with relationship ID rid19 was not found in the file. Havfisk ASA - 3Q14 update Annualised updated estimates Cod up around NOK 4.5/kg Y/Y Expecting prices on average to climb by 24% Y/Y Cost up by 16% for Number of vessels in operations will most likely be reduced from 11 to 8 from 2H15 (previously we expected 1Q15) Norway Seafoods shares transferred to HFISK shareholders in 2013 HFISK Volumes H/G E 2015E Cod Saithe Haddock Praw ns Redfish, black halibut Total HFISK Total Y/Y 9 % 11 % -1 % 1 % 5 % -8 % Cod Y/Y 38 % 30 % 9 % 40 % -10 % -10 % Landing prices H/G E 2015E Cod price/kg H/G Saithe price H/G Haddock price H/G Av. first hand price Price increase Y/Y 16 % 2 % -9 % 0 % 27 % 24 % Harvesting cost/kg*) Harvesting cost/kg Y/Y Cost/kg Y/Y, pst 16 % -3 % -3 % -6 % 18 % 16 % EBITDA/kg Vessels in operation*) *) Restructuring the fleet from 2H 2015 onwards - 8 vessels in operation (down from 10 today) HFISK, NOKm E 2015E Revenues EBITDA EBITDA-margin 23 % 27 % 24 % 27 % 32 % 37 % EBIT CFop Inventories NIBD* *) Iceland trial provision not included in NIBD (NOK173m) Norway Seafoods Group AS (OTC-listed) On February the OTC listed Norway Seafoods Group AS processing and sales company announced a NOK m investment programme running to 2017, aiming to create profitability in the land based industry in Nordland and Finnmark though increased sales and operational efficiency. The main processing plants at Stamsund, Melbu, and Båtsfjord will be developed further, while the Mehamn plant is now sold towards local investors. The Government has accepted that Havfisk is not obliged to deliver fresh fish volumes to the Mehamn plant. Further, a new smaller fresh fish plant at Forsøl close to Hammerfest will replace the large existing Hammerfest plant that will be sold by HFISK. Norway Seafoods operates 4 smaller plants at Tromvik, Sørvær, Berlevåg and Kjøllefjord. Finally, the company manages 6 sourcing stations at Stamsund, Kleppstad, Skårvågen, Skarsvåg, Nessby and Vardø that should supply the larger processing plant with additional important raw materials. The Norway Seafoods strategy involves a higher degree of specialisation of the different processing plants and a higher share of cod of high quality. Live storage of cod will, probably over time, take place in Båtsfjord and Melbu, and other locations could also over time be considered. Live storage of cod could, to certain extend, contribute to smooth seasonality and help developing consumer demand. In 2013 Norway Seafoods established its own brand name for the retail and restaurant markets, and the company underlines that product development will be an important driver ahead. Recently, Fondsfinans Research 4 November 2014 Page 5

6 new consumer packed cod products are introduced to the domestic market. Havfisk ASA normally follows a different seasonal catch pattern than the coastal fleet, which already dampens seasonality somewhat. In 2014 Havfisk has modified two of its existing freeze trawlers in order to facilitate a higher capacity to deliver fresh cod (rebuild to combi trawlers). The table below sums up quarterly earnings YTD. Norway Seafoods, NOKm 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Revenues EBITDA EBITDA-margin -2 % 1 % 2 % 1 % -1 % -5 % 1 % -2 % 0 % EBIT CFop Inventories NIBD* Equity ratio 28 % 23 % 21 % 19 % 19 % 18 % 19 % 19 % 17 % * NIBD distribution: Subordinated loan from HFISK of NOK 100m. Total 1Q (4Q) debt towards HFISK of NOK 206 (201)m Norway Seafoods (processing) 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Primary processing Fresh share of processing n.r. 34 % 31 % n.r. 36 % 36 % 33 % 25 % 39 % Fresh VAP production Frozen VAP production Total VAP production Norway Seafoods (sales) 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Sale of primary process. products Sale of fresh VAP products Sale of frozen VAP products Total sale of VAP products Sale of unprocessed fish Updated SOTP values of Havfisk ASA We continue to set the restricted Havfisk quota values equal to NOK 35m apiece even though free quotas have been traded at significantly higher levels (NOK m per free quota). At the end of 2012, external auditors assessed the value of the Norwegian Havfisk ASA cod quotas to NOK 50m apiece, according to the company s annual report. According to the company, the valuation is based on transaction values for equivalent quotas adjusted for transaction costs. Our discount is due to the fact that Havfisk still has landing commitments in Northern Norway (10-15% of total harvesting volume) towards smaller third party processing plants. Hence, most of the HFISK white fish quotas are not free quotas. However, over time we expect positive clarification in regulatory issues. The new Government has indicated that more flexible fishing rules will be implemented. We assume from 2H Furthermore, the trawling vessels are obliged to offer its fresh fish harvest to Norway Seafoods processing plants at Melbu, Hammerfest and Berlevåg on a first-right-of-refusal basis. Such landing obligations increase, to some extent, costs. On-board processed and frozen fish material has much more landing flexibility than is the case for fresh HOG fish. Our upstream SOTP only takes into consideration the current Norwegian fishing regime. A future, more flexible fishing regime would potentially increase quota values. Any such scenario is not implemented in our current SOTP model. Page 6 4 November 2014 Fondsfinans Research

7 SOTP values of NOK 18.7 (17.5) per share Provision of NOK 174m related to Iceland law suit equals NOK 2/share (provision not included in current NIBD) At 3Q presentation at FF office management indicated dividend payments based on 2015 results if positive ruling in the Iceland/ Glitnir trial SOTP Havfisk ASA Quotas Ownership Value EBITDA15 EV Nordland Havfiske AS Finnmark Havfiske AS Hammerfest Industrifiske AS 60% ownership Additional trawling vessel values (own table) HFISK white fish quota values > 62 latitute Separate prawn/black halibut quotas Saithe quotas in the North Sea Greater silver smelt quotas EV upstream (Havfisk ASA) NIBD Fleet program paid, Hammerfest plant and Rypefjord sold 534 Equity values Outstanding Shares (mill) 84.6 SOTP Havfisk ASA 20.7 Glitnir trial (Provision not in NIBD) 174 Glitnir trial per share 2.06 Target price Havfisk ASA 18.6 HFISK lost initial court case Supreme court for final decision in January 2015 Liability of NOK 1.9/share included in NIBD The Iceland law suit (Glitnir case) On 30 December 2013, Reykjavik District Court passed judgement in the case regarding Havfisk s interest rate, inflation and currency swap agreement with Glitnir. The ruling is that Havfisk did not have the right to cancel the agreement i 2008, and the company is ordered to pay the equal of NOK 172m in compensation and interest. Havfisk maintains its belief that the ruling is incorrect and will appeal. The ruling is not finally binding, and according to Iceland's legal system with two instances, the appeal goes to Iceland's Supreme Court for final decision. According to the company, it is expected that the trial be concluded by the Supreme Court in January Any payment of a claim would not occur until after the Supreme Court judgement. In our updated SOTP we have included the NOK 174m provision as a liability (equal to increase of around NOK 2/share in NIBD). In the case of a different ruling by the Supreme Court, this will increase the book equity and P/B will fall. Estimate changes: Havfisk ASA New14 Old2014 New15 Old15 14 % 15 % Revenues % 21 % Op cost % 33 % EBITDA % 4 % EBIT % 2 % Cod % 1 % Saithe (incl North Sea) % -21 % Haddock % -9 % Others (redfish/prawns) % 69 % Total fishing (H/G) % 1 % Cost/kg % 32 % PTP % 11 % EPS adj % 12 % NIBD (UB) % -25 % Source: Fondsfinans Research Fondsfinans Research 4 November 2014 Page 7

8 Risk assessment Always regulatory and market risks in wild-catch Our Havfisk valuation is based on long term sustainable harvesting volumes of white fish in the North Sea, the Nordic Sea and the Barents Sea. Higher or lower sea water temperature may in the long run affect white fish stocks or the fish could move to other sea waters. Thus, harvest volumes, price achievement and profitability may be affected. Further, the long term value of the HFISK quotas is set significantly lower than for free quotas without landing obligations. HFISK is, however, valued as a going concern. The liquidation value of the company is probably much higher. Further, our SOTP target is based on the existing fishing regime of today. The annual issue of white fish quotas in the Barents Sea is subject to an agreement between Norwegian and Russian governments. Fishing in the North Sea is subject to a multilateral agreement between EU-countries and Norway. Regulatory risks in white fish harvesting are generally higher than in other industries. Page 8 4 November 2014 Fondsfinans Research

9 Definitions of ratings Buy Low risk: with a potential of min 5%. Medium risk: with a potential of min 10%. High risk: with a potential of min 20%. Neutral Low risk: -5% to +5%. Medium risk: -10% to +10%. High risk: -20% to +20%. Sell Low risk: min 5%. Medium risk: min 10%. High risk: min 20%. Risk ratings are based on price volatility, fundamental criteria and perceived risk. Ratings are: Low (L), Medium (M) and High (H). Target: Our valuation as of today. Time frame of target: Target is what we value the share as of today. Recommendation distribution as of : Companies in each recommendation category that have been investment banking clients over the past 12 months: Recommendation No Percent Recommendation No Percent Buy % Buy 4 8 % Neutral % Neutral 0 0 % Sell 3 4 % Sell 0 0 % Total % Total 4 Our intention is to issue preview and update research on a quarterly basis. Our investment recommendation is elaborated in accordance with The Norwegian Securities Dealers Associations standards. This report has not been sent to the company for correction of any factual errors. Fondsfinans is organized with Chinese walls between the Corporate Department and the Research/Broking Department. In addition, Fondsfinans has internal instructions and guidelines for handling sensitive information. The analysts receive compensation that is impacted by overall firm profitability, including investment banking activities. Fondsfinans is under supervision of The Financial Supervisory Authority of Norway. The recommendation has not been changed from BUY. The previous recommendation was issued Ownership per in Havfisk ASA: Analyst (including his/her closely related persons or companies): 0, corresponding to 0% of the company share capital Employees (including their respective closely related persons or companies): 0, corresponding to 0% of the company share capital Group Fondsfinans (including the holdings of its Chairman, his spouse and their closely related companies, Erik Must AS and its 100% controlled subsidiaries): 0, corresponding to 0% of the company share capital. Fondsfinans may hold shares in Havfisk ASA as a result of daily trading/market making. Information on such holdings is not given when of non-significant value. Fondsfinans do not act as market maker in Havfisk ASA. Fondsfinans has not acted as corporate adviser, lead manager in IPO etc. during the past 12 months. This report was issued and distributed DISCLAIMER This report is provided for information purposes only. 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10 Havfisk ASA Analysts: Bent Rølland and Philip M. Scrase Sector: Fisheries Price (NOK): 14.0 Shares outst.: 84.6m Date: 03.nov.14 Book equity per share (NOK): 10.7 Market cap (NOKm): Next result: TBA Equity ratio: 38 % Net int.bearing debt (NOKm): Target 18.6 Avg daily vol (90d): 33.8 Entrprise value (NOKm): Recommendation: Buy 12 months High / Low: 14.5 / 6.9 OSEBX: 587 Financial data (NOKm) 2011pf E 2015E 3Q13 4Q13 1Q14 2Q14 3Q14E 4Q14E 1Q15E Operating income Costs of goods/other op. ex EBITDA EBITDA-margin 27 % 24 % 27 % 32 % 37 % 24 % 36 % 32 % 21 % 29 % 44 % 43 % Depreciation EBIT (operating profit) EBIT-margin 18 % 10 % 17 % 20 % 25 % 13 % 28 % 18 % 7 % 17 % 32 % 32 % Associates Net financial expences PTP (profit before tax) Taxes Profit for the period Outstanding shares (m) Adjusted result EPS EPS adj CF from operations per share EV/Sales P/B EV/EBIT EV/EBITDA P/E adj Havfisk upstream 2011pf E 2015E 3Q13 4Q13 1Q14 2Q14 3Q14E 4Q14E 1Q15E Operation income Operation costs EBITDA Depreciation EBIT (operating profit) Cod Saithe (incl North Sea) Haddock Prawns Redfish and black halibut Total harvesting Norway (H/G t) Harvesting growth YoY 11 % -1 % 1 % 5 % -8 % -7 % 41 % 20 % 3 % 20 % -18 % -9 % HFISK price/ H/G Cost per kilo H/G EBITDA (NOK/ H/G) Reference prices 2011pf E 2015E 3Q13 4Q13 1Q14 2Q14 3Q14E 4Q14E 1Q15E First hand price, cod H/G First hand price, haddock H/G First hand price, saithe H/G Av. first hand sale price Price increase Y/Y 2 % -9 % 0 % 27 % 24 % 19 % 12 % 4 % 39 % 30 % 40 % 54 % Havfisk ASA (balance Sheet) E 2015E Shareholders ( ) Shares Per cent Intangible assets Aker ASA % Tangible fixed assets Marine Harvest ASA % Total intangible and intangible fixed as Cortex AS % Financial fixed assets Converto Capital % Total assets Kontrari AS % Total equity SES AS % Total long-term liabilities Nordnet Bank % Total equity and liabilities Bentneset Invest AS % NIBD Jah AS % CF Havfisk 10 Jim Øystein Holden % From operations Stator AS % From investments Capreca AS % From finance MP Pensjon % Net cash flow Other shareholders % Cash end of the period Total Shares %