The Salmon Farming Industry in Norway 2007

Transcription

1 The Salmon Farming Industry in Norway 2007 Analysis of the annual reports for 2006 Systemizing the World of Aquaculture and Fisheries

2 1 Introduction Biology Prices Markets Acquisitions in Norway Summary Norwegian salmon farming industry Analysis Norwegian subsidiaries of the multinational companies Harvest quantity Net sales Profit and losses Capital costs Capital structure The regional companies Profit and losses Harvest quantity own fish Financial costs Equity Liquidity Return on Assets and Return on Equity The small and midsized companies Net sales Operating margins Financial costs Capital structure Comparison of key figures between the categories Large Norwegian exporters Net sales Operating profit / profit before taxes Operating margin / profit margin Short comments on the companies Regional companies Large salmon exporters in Norway The Salmon Farming Industry in Norway 2007 Page 1/45

3 Appendix: 1. Profit and losses Regional companies in Norway Equity and debt Regional companies in Norway Profit and losses resume Small and midsized Norwegian companies Assets Small and midsized Norwegian companies Equity and debt Small and midsized Norwegian companies Operating profit per concession Regional companies in Norway 7. Profit before tax per concession Regional companies in Norway 8. Margins Regional companies in Norway 9. Book value and concessions Regional companies in Norway 10. Operating profit Regional companies in Norway 11. Margins exporters The Salmon Farming Industry in Norway 2007 PUBLISHED BY: Kontali Analyse AS PROJECT MANAGER: Tor Arne Vang: PROJECT-TEAM: Arnt Kjønhaug: Peggy L. Klokseth: Monica Eikrem: CONTACT INFO.: KONTALI ANALYSE AS Industriveien 18 N-6517 KRISTIANSUND N NORWAY Tel: Fax: [email protected] Web: The Salmon Farming Industry in Norway 2007 Page 2/45

4 1 Introduction Also this year, Kontali Analyse presents The salmon Farming industry in Norway, a benchmark report based on the accounting figures for turned out to be a very impressive year margin wise for the salmon farming companies in Norway with record margin, but it is still large variations in the performance of the companies as this report shows. Also in 2006, the industry structure has changed and by the end of 2006, 24 companies had 6 or more license. These companies we have still classified as regional companies, even though a few of these companies have been bought by other companies in late 2006 or in As earlier years, a group of randomly sampled small and midsized companies have been picked based on both geographical location and number of licenses. Some of the larger Norwegian exporters are also included in the report as earlier years turned out to be a fantastic year financially for Norwegian salmon farmers. Record high prices during the summer, over NOK 45/kg, and combined with higher harvest quantities resulted in record margins. Several companies managed over 40 % in operating margins, while the regional companies as a group ended on average above 30 % in operating margin, which must be said to be very impressive. 1.1 Biology 2006 The ova inlay of Atlantic salmon was approx. 260 million eyed eggs in 05/06 season. This was an increase of approx. 25 million eyed ovas compared to the season one year ago, but in line with the ova inlay in the 01/02 and 02/03 season. A new regulation was introduced the 1 st of January 2005 in the ongrowing production (MAB maximum allowable biomass). This led to a higher demand of smolt, and an increasing ova yield. The smolt release of S1 06G was estimated to 106 million individs. This is in line with the release of S1 05G, and only 1 million higher than the release of S1 04G. The main reason of this stable smolt release of S1`s is adjustments to the MAB maximum allowable biomass. This adjustment gives a higher smolt release in the autumn and can give a shortage of the release of S1. The release of S0 06G was estimated to 76 million individs. This was an increase of approx. 20 million smolts compared to the autumn release in The sea temperature in the start of 2006 was back at a more normal level than the high temperatures in January and February The temperature increased towards the summer and was maybe a bit high in the south west region of Norway. After August the temperature remained high and the growth conditions during the autumn and winter was fantastic. The average weight on the standing biomass was at a record level. The relative feeding (feed per month/ standing biomass in the start of month) during 2006 was high, but a bit lower than in was characterized by a peak in the summer caused by good growth conditions on the large sized salmon was a year characterized with more equal sea temperatures, and the growth conditions and relative feeding remained extremely good especially from June to December. The Salmon Farming Industry in Norway 2007 Page 3/45

5 % relative feeding 36 % 32 % 28 % 24 % 20 % 16 % 12 % 8 % 4 % 0 % Relative feeding Atlantic salmon Norway Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 36 % 32 % 28 % 24 % 20 % 16 % 12 % 8 % 4 % 0 % % relative feeding The harvest quantity in 2006 was estimated to approx tonnes (wfe). This was an increase of approx tonnes (wfe) compared to the harvested quantity in Because of the good growth conditions compared with a strategy of increasing size of harvested fish, the average harvest weight increased from 4,79 kg (wfe) in 2005 up to 4,91 kg (wfe) in There was a slight decrease in the harvesting of trout in The total harvest quantity was approx tonnes (wfe), which was a decrease of approx tonnes (wfe) compared to The total harvest quantity of Atlantic salmon and trout was approx tonnes (wfe) in Harvest quantity Atlantic salmon Norway In tonnes WFE The growth conditions during the winter 06/07 combined with an increasing smolt release of S0 both in 2005 and 2006 gives expectations of an increasing harvest quantity in The estimated harvest quantity in 2007 is tonnes (wfe) of Atlantic salmon and approx tonnes (wfe) of trout. The Salmon Farming Industry in Norway 2007 Page 4/45

6 In tonnes WFE Harvest quantity trout Norway During 2006, it was sold approx tonnes of fish feed in Norway. Atlantic salmon and trout is consuming the main share of this feed, but with an increasing share to marine species and freshwater production of smolt tonnes was consumed by Atlantic salmon and approx tonnes was consumed by trout. The sale in 2006 showed an increase of approx. 9 % compared to the total feed sale in The total biomass of Atlantic salmon was approx tonnes (wfe) by the end of This was approx. 13 % higher than the standing biomass ultimo Tonn Total feedsale Norway The Salmon Farming Industry in Norway 2007 Page 5/45

7 1.2 Prices The prices of Atlantic salmon and trout continued to increase in A relatively low standing biomass of the oldest generation in sea, combined with a strong demand, especially in the EU gave prices up to NOK 45 per kg FCA Oslo in the summer months. The monthly average price in June was approx. NOK per kg. The supply from UK and Faroe Island remained more or less stable and was probably a reason of the rising prices. In July many packing station were closed and the harvest quantity was the lowest in several years caused by displacement in the harvesting of S1 06G. This combined with good growth conditions increased the average standing weights, and represented a higher harvest potential during the autumn. This led to decreasing prices compared to 1.half of 2006, even though they remained at a high level. The weighted average price for superior Atlantic salmon delivered FCA Oslo in year 2006 ended at 31,29 NOK/kg. That was approx. 6 NOK/kg higher than the average for year The prices for trout were good in 2006, mainly driven by a strong demand in the Russian market. This market was closed in a period of export of fresh products, and the product condition changed from fresh to frozen. The exports of frozen trout (head-off) fetched an average FOB exportprice of NOK/kg. This was approx. NOK 5.17 per kg higher than Total exports of Atlantic salmon were approx billion NOK in This was approx. 26 % higher than the export value in The total export value for both Atlantic salmon and trout was approx billion NOK in 2006, which was an increase of approx. 3.7 billion NOK compared to ,00 42,00 39,00 36,00 33,00 30,00 27,00 24,00 21,00 18,00 15,00 Weighted average price Norway YTD 2007 (weighted average price, Atlantic salmon gutted,superior quality, FCA Oslo) Markets 2006 started with import sanction of Norwegian fish to the Russian market. From import of all fresh fish from Norway was stopped, caused by alleged findings of high levels of Cadmium and Lead in Norwegian salmon. During 1.quarter the governments agreed in a quality control of the packing station from Russian veterinary governments. 9 companies received the licence for exports of fresh salmon and trout to Russia. This was in any case a serious incident for Norwegian fish farmers in a market with a high growth rate previous years. The Salmon Farming Industry in Norway 2007 Page 6/45

8 It was exported approx tonnes (wfe) of Atlantic salmon, and approx tonnes (wfe) of trout. This was a decrease compared to 2005 of approx tonnes of Atlantic salmon and approx tonnes of trout. EU-25 is still the largest main market for Norwegian salmon. It was exported approx tonnes (wfe) of Atlantic salmon from Norway in It was an increase of approx tonnes (wfe) compared to 2005 (+ 7 %). In 2005 it was introduced a minimum import price from Norway to EU, which is still existing. Strong demand and a low growth in supply have given record prices of Norwegian salmon. The minimum import price was not a problem in The Japan market has been decreasing for several years, and Norwegian fish farmers experienced a further decline in During the year, it was exported approx tonnes (wfe) with Atlantic salmon, which was a decrease of approx. 11 % compared to the tonnes (wfe) that was exported in Sales of Norwegian salmon Export EU Export USA Export Japan Export others Domestic cons Acquisitions in Norway 2006 turned out to be a year with major changes in the Norwegian salmon farming industry. This was the year when Norwegian Cyprus based billionaire John Fredriksen first acquired Pan Fish, and then later Fjord Seafood and Marine Harvest. After receiving approval from the competition authorities, the three companies were merged in the beginning of 2007 to become the largest salmon farming company in the world, Marine Harvest Group. Another stock listed company, Cermaq, made acquisitions in 2006 through the salming farming division Mainstream. Langfjordlaks with 4 on growing licenses and Polarlaks with 12 on growing licenses, both operating in the county of Finmark were acquired in Lerøy Seafood Group acquired Fossen and Hydrotech Gruppen. Fossen is known as a large producer of large rainbow trout and producer of further processed products, while Hydrotech Gruppen acquired Aakvik Settefisk before the deal with Lerøy Seafood Group. In 2007, Lerøy Seafood Group later made a deal to take over Austevoll Seafoods farming division, Veststar with 28 on growing licenses. The deal was reported to be worth close to 1.1 billion NOK, making Austevoll Seafood the largest single shareholder in Lerøy Seafood Group. The Salmon Farming Industry in Norway 2007 Page 7/45

9 Also other large salmon farming companies in Norway were active acquiring companies throughout Salmar acquired Aure Havbruk and later in the year, Senja Sjøfarm with 8 on growing licenses in the county of Troms. They also acquired Halsa Fiskeoppdrett with 2 on growing licenses. In 2006, two large companies, Grieg Seafood and Volden Group merged, and the new company has 36 on growing licenses, making it the fifth largest salmon farming company measured by licenses in commercial use. Another merger took place between salmon farmer Seafarm Invest and processor Nova Sea, forming the company Nova Sea. The company also acquired Skjelbulaks with 2 on growing licenses. By the end of 2006, also 10 new licenses were issued in the county of Finnmark through a closed bidding round. Villa Gruppen owned Troika Seafarms got 7 licenses in eastern Finnmark, while Mainstream got 2 licenses and Grieg Seafood Finnmark (Volden Group) got 1 license. In tonnes WFE Harvest quantity Atlantic salmon World wide E Norway Chile UK Canada Faroe Island Other 2 Summary Norwegian subsidiaries of multinational companies The merger between Marine Harvest, Pan Fish and Fjord Seafood was approved by the end of 2006, forming Marine Harvest Group. The three companies did however operate quite independently throughout 2006, except that Fjord Seafood sold their fish to Pan Fish in the later part of The companies did managed impressive operating margins in 2006, but are still slightly lower than the better regional and small and midsized companies, which has also been the case in earlier years. Regional companies In 2006 the large regional companies average operating margin reached 31.8% compared to 23.3 % in The profit margin was 32.1 % in 2006 and 22.6 % in Net finance costs were actually negative in 2006, which indicate the solid financial status of the companies The average equity ratio for the group as a whole was 37.2 % in In 2005 it was 32.5 %. The Salmon Farming Industry in Norway 2007 Page 8/45

10 Small/ midsized Norwegian companies The group of smaller companies had in 2006 an operating margin and profit margin of 31.4 % and 30.3 % respectively. The equity ratio for the smaller companies increased from 34.5 % in 2005 to 40 % in 2006, mostly due to very good results and retained earnings. Exporters Exports of Norwegian salmon and trout have over the last years been carried out by fewer and fewer companies, but in companies handled 80 % of the total exported quantity, compared to 17 in For the sample of exporters, 2006 turned out to a better year than The total net sales for our sample increased and the operating margin increased from 1.2 % to 1.7 % from 2005 to Norwegian salmon farming industry The Norwegian salmon farming industry has developed from a structure of many small companies early in the nineties to an industry dominated by a few large companies today. Over the last couple of years, the larger companies have bought many of the mid-sized and regional companies making the larger companies even bigger in terms of license volume. Distribution Ongrowing licenses by group Nr. of companies Primo 2007 Nr. of licenses % Nr. of companies Nr. of licenses % Nr. of companies Nr. of licenses % Nr. of companies Nr. of licenses % 1 llicense % % % % 2-5 licenses % % % % 6-9 licenses % % % % licenses % % % % licenses % % % % licenses % % % % licenses % % % % Over 50 licenses % % % % Total % % % % The Salmon Farming Industry in Norway 2007 Page 9/45

11 4 The selection/sample The report has also this year divided the sample of salmon farming companies into three groups; Norwegian subsidiaries of large multinational companies, large regional Norwegian companies with 6 or more licenses and small/mid sized Norwegian companies with 1 5 licenses. Licenses COMPANY Included in the report Total No MTB % No MTB % Subsidiaries of multinational companies % % Regional companies (6-36 licenses) % % Small companies (1-5 licenses) % % TOTAL % % 5 Analysis 5.1 Norwegian subsidiaries of the multinational companies In 2006, major restructuring between the multinational companies took place. John Fredriksen controlled Pan Fish first acquired Fjord Seafood and later Marine Harvest, forming new Marine Harvest Group. The mergers were not finally approved before the end of the year, so the companies were still separate business units throughout 2006, but Pan Fish Norway sold Fjord Seafood s fish after the acquisition Harvest quantity Licenses per Harvest quantity Norway (Tonnes wfe) COMPANY No. MTB MARINE HARVEST NORWAY AS FJORD SEAFOOD NORWAY AS PAN FISH NORWAY AS MAINSTREAM NORWAY AS TOTAL The Salmon Farming Industry in Norway 2007 Page 10/45

12 5.1.2 Net sales NET SALES - MILL. NOK COMPANY CH. 05/ CH. 04/05 FJORD SEAFOOD NORWAY AS ,8 % ,9 % 873 MARINE HARVEST NORWAY AS ,8 % ,9 % PAN FISH NORWAY AS ,7 % 835 7,7 % 897 MAINSTREAM NORWAY AS ,4 % 342 5,8 % 307 TOTAL ,6 % ,4 % Both Pan Fish Norway and Mainstream Norway increased their net sales by 58.7 % and 28.4 %, respectively, while Marine Harvest Norway and Fjord Seafood decreased their net sales by 2.8 % and 7.8 %. For Pan Fish Norway, Oppdrettslaks AS and Aqua Farms AS have been consolidated in Pan Fish Norway contributing to the higher net sales. For Mainstream Norway, Langfjordlaks AS has been consolidated in for November and December in the profit and loss statement. One reason for the lower net sales for Marine Harvest, is merger with Stolt Sea Farm AS, which resulted that 2005 figures include 13 months for Stolt Sea Farm AS Profit and losses The operating margin for Marine Harvest, Fjord Seafood and Mainstream ended above 30 % for 2006, with 30.1 % and 35.4 %, respectively. The operating margin for Pan Fish ended about 11.7 percentage points lower than Mainstream. The operating profit for Marine Harvest was more than 1 billion NOK in OPERATING PROFIT OPERATING MARGIN NET PROFIT PROFIT MARGIN COMPANY MARINE HARVEST NORWAY A ,1 % 10,7 % 1,1 % ,7 % 11,3 % -1,4 % FJORD SEAFOOD NORWAY AS ,5 % 18,6 % 1,6 % ,9 % 14,1 % -6,0 % PAN FISH NORWAY AS ,7 % 18,5 % 3,5 % ,8 % 14,8 % -2,1 % MAINSTREAM NORWAY AS ,5 % 25,7 % 8,0 % ,8 % 24,6 % 3,5 % Average ,8 % 14,3 % 2,3 % ,3 % 13,2 % -2,2 % 2004 was a year with positive operating profit, but negative net profit for two of the companies, with companies results were influenced by restructuring cost turned out be a good year for the multinational subsidiaries. Despite further mergers and restructuring, all four companies are showing profit margins above 20 %. The Salmon Farming Industry in Norway 2007 Page 11/45

13 COMPANY HARVEST QUANTITY (TONNES WFE) NET SALES PER KG HARVESTED OPERATING PROFIT PER KG. HARVESTED NET FINANCIAL COSTS PER KG HARVESTED MARINE HARVEST NORWAY AS ,02 37,05 11,46 0,02 0,17-0,22 FJORD SEAFOOD NORWAY AS ,58 28,76 11,57 5,35 0,85 1,28 PAN FISH ASA ,23 27,59 8,59 0,02 1,06 1,03 MAINSTREAM NORWAY AS ,04 27,86 9,59 7,16 0,45 0,31 Average ,80 33,26 10,65 4,70-0,51 0,36 Net sales per kg harvested fish increased in 2006 compared to 2005, from to Please note that the prices above are estimated for whole fish equivalent (wfe) and that some of the companies may have sold salmon for other companies, especially Pan Fish which sold fish for Fjord Seafood. Therefore, the figures above do not represent the achieved prices per kilo gutted weight Capital costs NET FINANCIAL COSTS FINANCIAL COSTS IN % OF NET. SALES COMPANY MARINE HARVEST NORWAY AS ,4 % -0,6 % FJORD SEAFOOD NORWAY AS ,5 % 4,5 % PAN FISH NORWAY AS ,9 % 3,7 % MAINSTREAM NORWAY AS ,7 % 1,1 % TOTAL ,4 % 1,1 % Average financial costs in percent of net sales increased from 1.1 % in 2005 to 1.4 % in This is slightly higher than the regional companies achieved, but at the same time, the figures are so low it can almost be neglected. The Salmon Farming Industry in Norway 2007 Page 12/45

14 5.1.5 Capital structure In MNOK Fjord Seafood Norway AS Pan Fish Norway Marine Harvest Norway Mainstream Norway AS Total Intangible Assets Tangible Assets Financial Assets Fixed Assets % % % % % % % % % % Inventories Other Current Assets Current Assets % % % % % % % % % % Assets % % % % % % % % % % Equity % % % % % % % % % % Long term liabilities % % % % % % % % % % Current liabilities 68 5 % % % % % % 43 6 % 32 7 % % % Equity and liabilities % % % % % % % % % % Return on total assets 26,4 % 16,2 % 16,7 % 12,2 % 25,9 % 12,4 % 22,2 % 19,1 % 10,2 % 2 % Equity % 57,8 % 42,1 % 45,4 % 44,4 % 34,9 % 27,1 % 34,1 % 26,9 % 41,2 % 34,0 % Equity % ex ing. assets 18,2 % -4,9 % 24,8 % 22,4 % 33,2 % 24,8 % 8,0 % 2 % 26 % 16,4 % Return on Equity 42 % 29 % 32 % 22 % 73 % 48 % 62 % 68 % 54 % 37 % Current Ratio 8,90 3,51 3,01 6,74 1,79 2,50 8,87 6,85 2,36 3,10 Acid test Ratio 3,24 1,61 1,49 3,95 1,22 1,60 3,13 2,36 1,37 1,83 ROACE 26,5 % 15,9 % 23,2 % 14 % 65,0 % 33 % 26,7 % 20 % 37,8 % 20,4 % Assets turnover 0,77 0,87 0,70 0,66 0,86 1,16 0,62 0,74 0,78 0,96 The table above compares the capital structure among the multinational companies. Fjord Seafood had the highest equity percentage in 2006 with 57.8%, followed by Pan Fish, Marine Harvest and Mainstream. Marine Harvest had the highest return on equity with 73%, followed by Mainstream, Fjord Seafood and Pan Fish. The difference between the companies is much smaller when it comes to return on total assets, and Fjord Seafood had above 26 as the highest. It is also worth noting that the companies have improved their financial position over the last years and become quite solid as the current ratio indicates. Only Marine Harvest has a current ratio below 2 at 1.70 which still would not be considered as low. The acid test Ratio, defined as current liabilities less inventories divided by current liabilities, shows the same result, the multinational companies have a sound financial position in 2006 The Salmon Farming Industry in Norway 2007 Page 13/45

15 5.2 The regional companies COMPANY Licenses pr August 2007 Harvest quantity in 2006 (tons gutted weight) No MTB Salmon Trout Total SALMAR AS VESTSTAR HOLDING AS (Lerøy Austevoll AS) LERØY MIDNOR AS NOVA SEA AS SJØTROLL HAVBRUK AS NORDLAKS HOLDING AS LERØY HYDROTECH AS GRIEG SEAFOOD FINNMARK AS ALSAKER FJORDBRUK AS VILLA GRUPPEN AS LERØY AURORA AS GRIEG SEAFOOD ROGALAND AS SINKABERG-HANSEN AS FIRDA MANAGEMENT AS NA NA NA POLARLAKS AS BREMNES FRYSERI AS MIDT NORSK HAVBRUK AS ARCTIC SEAFOOD HOLDING AS SENJA SJØFARM AS AS BOLAKS HØLLALAKS AS (Ellingsen Seafood) FJORDLAKS AQUA AS LERØY FOSSEN AS JØKELFJORD LAKS AS TOTAL From 2005, the license limitation is not volume, but total maximum biomass (MTB). The table shows all the Norwegian companies with six or more ongrowing licenses per in addition to number of licenses per August See chapter 7 for further information about the companies. In total, these companies had 389 licenses in the end of 2006 Even though some of the companies have been bought during 2006, they are still included in the list for Polarlaks have been bought by Cermaq, while Senja Sjøfarm has been bought by Salmar. Volden Group was merged with Grieg Seafood Rogaland to become Grieg Seafood Finmark. The Salmon Farming Industry in Norway 2007 Page 14/45

16 5.2.1 Profit and losses COMPANY NET SALES CHANGE 05 / CHANGE 04 / 05 Operating margin Profit margin (before tax) ALSAKER FJORDBRUK AS % % 41,6 % 39,4 % 20,7 % 54,4 % 38,2 % 18,3 % LERØY MIDNOR AS % % 41,3 % 27,2 % 8,1 % 40,5 % 25,3 % 5,0 % SALMAR AS % % 40,9 % 28,7 % 15,5 % 46,2 % 36,6 % 13,9 % AS BOLAKS % % 38,7 % 29,4 % 5,1 % 35,9 % 20,3 % -1,0 % MIDT NORSK HAVBRUK AS % % 37,4 % 32,6 % 17,2 % 36,0 % 32,0 % 15,0 % NOVA SEA AS % % 34,1 % 29,7 % 15,9 % 34,2 % 28,0 % 11,0 % LERØY AURORA AS % % 33,4 % 19,2 % -2,2 % 31,4 % 14,7 % -6,1 % HØLLALAKS AS (Ellingsen Seafood) % % 32,5 % 27,3 % 6,3 % 31,1 % 26,2 % 5,7 % LERØY HYDROTECH AS % % 32,4 % 26,4 % 5,9 % 30,4 % 24,7 % 2,8 % GRIEG SEAFOOD FINNMARK AS % % 31,6 % 19,4 % 12,0 % 31,1 % 22,1 % 8,6 % JØKELFJORD LAKS AS % % 29,9 % 24,0 % 18,7 % 29,1 % 22,7 % 16,8 % SJØTROLL HAVBRUK AS % % 29,9 % 25,5 % 9,1 % 33,8 % 22,2 % -2,9 % SENJA SJØFARM AS % % 29,1 % 25,0 % -8,2 % 22,5 % 19,4 % -16,3 % FJORDLAKS AQUA AS % % 27,6 % 19,1 % 5,7 % 23,5 % 17,3 % 4,3 % FIRDA MANAGEMENT AS % % 27,1 % 24,6 % 13,5 % 25,1 % 22,1 % 10,9 % BREMNES FRYSERI AS % % 26,7 % 16,8 % 0,4 % 30,7 % 21,4 % -5,4 % VESTSTAR HOLDING AS (Lerøy Autevoll AS) % % 25,7 % 7,7 % -7,3 % 21,6 % 3,6 % -11,9 % NORDLAKS HOLDING AS % % 25,1 % 22,6 % 10,4 % 23,5 % 21,5 % 13,0 % ARCTIC SEAFOOD HOLDING AS % % 24,7 % 14,5 % -4,5 % 20,5 % 8,5 % -12,5 % GRIEG SEAFOOD ROGALAND AS % % 23,7 % 9,4 % -19,4 % 21,2 % 6,7 % -26,6 % SINKABERG-HANSEN AS % % 21,8 % 12,9 % 11,3 % 22,3 % 12,5 % 10,4 % LERØY FOSSEN AS % % 20,0 % 9,5 % 7,9 % 17,7 % 8,4 % 5,5 % VILLA GRUPPEN AS % NA NA 17,7 % 31,9 % NA 10,5 % 28,9 % NA POLARLAKS AS % % -17,3 % 12,7 % -16,3 % -21,6 % 7,6 % -20,8 % TOTAL % % 31,8 % 23,3 % 7,1 % 32,1 % 22,6 % 3,5 % Total net sales for the group have increased from NOK 6.9 billion in 2005 to NOK 9.3 billion in 2006 for the companies. Main reason is of course the higher prices for salmon in 2006 compared to On average, operating margin increased from 23 % in 2005 to above 32 % in 2006, which is all time high. Three of the companies had operating margins above to 40 %, and once again Alsaker Fjordbruk had the highest operating margin. It is also worth noting that only one company in the group lost money in % 30 % 25 % 20 % 15 % 10 % 5 % 0 % -5 % -10 % -15 % Operating margin The average operating margin in the period shows that salmon farming is a volatile business. The Salmon Farming Industry in Norway 2007 Page 15/45

17 COMPANY EBIT* 2006 EBITA** 2006 EBITDA*** 2006 NOK % NOK % NOK % SALMAR AS % % % LERØY MIDNOR AS % % % NOVA SEA AS % % % NORDLAKS HOLDING AS % % % SJØTROLL HAVBRUK AS % % % LERØY HYDROTECH AS % % % ALSAKER FJORDBRUK AS % % % LERØY AURORA AS % % % FJORDLAKS AQUA AS % % % SINKABERG-HANSEN AS % % % BREMNES FRYSERI AS % % % VESTSTAR HOLDING AS (Lerøy Autevoll AS) % % % AS BOLAKS % % % MIDT NORSK HAVBRUK AS % % % FIRDA MANAGEMENT AS % % % GRIEG SEAFOOD ROGALAND AS % % % GRIEG SEAFOOD FINNMARK AS % % % SENJA SJØFARM AS % % % HØLLALAKS AS (Ellingsen Seafood) % % % LERØY FOSSEN AS % % % ARCTIC SEAFOOD HOLDING AS % % % JØKELFJORD LAKS AS % % % VILLA GRUPPEN AS % % % POLARLAKS AS % % % Total % % % *Earnings before interests and taxes **Earnings before interests, taxes and amortization of goodwill ***Earnings Before Interest, Taxes, Depreciation and Amortization The average EBIT level for the group reached 31.8 % in 2006, while the average EBITDA level for the group ended at 35.1 % in Alsaker Fjordbruk had the highest EBIT level. 10 of the 24 companies in the group ended with more than 30 % in EBITDA. The Salmon Farming Industry in Norway 2007 Page 16/45

18 5.2.2 Harvest quantity own fish Company Harvest Quantity (gutted weight) 2006 Net sales per kg own fish harvested Operating profit per kg own fish harvested Financial costs per kg own fish harvested SINKABERG-HANSEN AS ,55 26,59 41,15 11,92 3,44 4,64-0,23 0,11 0,35 SALMAR AS ,90 39,61 34,77 17,15 9,52 5,40-2,22-1,85 0,55 LERØY FOSSEN AS ,66 32,97 30,39 8,13 3,12 2,39 0,94 0,36 0,73 SENJA SJØFARM AS ,24 24,98 20,64 11,73 5,87-1,70 2,65 1,29 1,66 AS BOLAKS ,10 23,04 16,42 14,37 6,77 0,84 1,05 2,08 1,01 NOVA SEA AS ,51 25,05 16,24 12,10 7,61 2,58-0,03 0,57 0,79 ALSAKER FJORDBRUK AS ,15 29,33 23,30 14,19 11,54 4,82-4,39 0,33 0,55 ARCTIC SEAFOOD HOLDING AS ,28 20,15 26,07 8,21 2,91-1,17 1,39 1,20 2,08 VILLA GRUPPEN AS ,13 0,00 0,00 5,86 0,00 0,00 2,38 0,00 0,00 LERØY MIDNOR AS ,33 26,27 17,00 13,34 7,15 1,36 0,24 0,49 0,52 SJØTROLL HAVBRUK AS ,28 28,70 25,06 9,65 7,33 2,29-1,25 0,95 3,03 JØKELFJORD LAKS AS ,49 24,37 22,99 9,43 6,82 4,29 0,27 0,72 0,42 MIDT NORSK HAVBRUK AS ,04 24,95 20,36 11,61 8,14 3,49 0,45 0,16 0,44 LERØY HYDROTECH AS ,27 26,71 28,65 9,80 7,06 1,70 0,60 0,46 0,89 GRIEG SEAFOOD FINNMARK AS ,04 27,11 20,34 9,49 5,26 2,44 0,14-0,74 0,70 GRIEG SEAFOOD ROGALAND AS ,85 NA 17,42 7,09 NA -3,38 0,76 NA 1,25 LERØY AURORA AS ,80 24,96 21,41 9,95 4,79-0,47 0,59 1,12 0,82 HØLLALAKS AS (Ellingsen Seafood ,62 23,82 20,67 9,31 6,50 1,30 0,40 0,25 0,13 BREMNES FRYSERI AS ,39 23,63 20,95 7,30 3,97 0,09-1,09-1,08 1,23 VESTSTAR HOLDING AS (Lerøy Au ,29 25,56 25,29 7,01 2,40-1,84 1,13 1,13 1,17 NORDLAKS HOLDING AS ,05 33,76 30,99 6,78 7,64 3,23 0,43 0,37-0,79 FJORDLAKS AQUA AS ,76 23,28 31,53 7,40 4,44 1,79 1,11 0,41 0,42 POLARLAKS AS ,20 17,44 21,92-4,74 2,21-3,57 0,01 0,88 0,98 FIRDA MANAGEMENT AS NA NA 22,47 26,02 NA 5,53 3,53 NA 0,56 0,68 TOTAL ,82 26,34 24,27 10,46 6,13 1,49-0,12 0,28 0,91 These numbers are not necessarily comparable between different companies, but are informative anyway. A low value (net sales/kilos harvested) indicate that a company mostly sell the fish as whole, while a high value indicate that a company is producing fillets and other value added products. Please note that we have not been able to obtain harvest figures from all the companies directly and we have then used secondary sources. The figures must therefore be viewed as guiding estimates. 10,00 8,00 6,00 4,00 2,00 0,00-2,00-4,00 2,20 Operating profit per kg. harvest own fish (NOK/kg) 3,16 4,41 9,84 1,18-1,54-2,42 1,49 6,13 10,46 The Salmon Farming Industry in Norway 2007 Page 17/45

19 5.2.3 Financial costs Financial costs in % of net sales Company ALSAKER FJORDBRUK AS -12,8 % 1,1 % 2,4 % SALMAR AS -5,3 % -7,9 % 1,6 % BREMNES FRYSERI AS -4,0 % -4,6 % 5,9 % SJØTROLL HAVBRUK AS -3,9 % 3,3 % 12,1 % SINKABERG-HANSEN AS -0,4 % 0,4 % 0,8 % NOVA SEA AS -0,1 % 1,7 % 4,9 % GRIEG SEAFOOD FINNMARK AS 0,5 % -2,7 % 3,4 % LERØY MIDNOR AS 0,7 % 1,9 % 3,1 % JØKELFJORD LAKS AS 0,8 % 1,3 % 1,8 % HØLLALAKS AS (Ellingsen Seafoo 1,4 % 1,1 % 0,6 % MIDT NORSK HAVBRUK AS 1,4 % 0,6 % 2,2 % NORDLAKS HOLDING AS 1,6 % 1,1 % -2,5 % FIRDA MANAGEMENT AS 2,0 % 2,5 % 2,6 % LERØY HYDROTECH AS 2,0 % 1,7 % 3,1 % LERØY AURORA AS 2,0 % 4,5 % 3,8 % LERØY FOSSEN AS 2,3 % 1,1 % 2,4 % GRIEG SEAFOOD ROGALAND AS 2,5 % 2,6 % 7,2 % AS BOLAKS 2,8 % 9,0 % 6,1 % VESTSTAR HOLDING AS (Lerøy A 4,1 % 4,1 % 4,6 % FJORDLAKS AQUA AS 4,2 % 1,8 % 1,3 % ARCTIC SEAFOOD HOLDING AS 4,2 % 5,9 % 8,0 % POLARLAKS AS 4,4 % 5,0 % 4,5 % SENJA SJØFARM AS 6,6 % 5,6 % 8,0 % VILLA GRUPPEN AS 7,2 % 3,0 % NA TOTAL -0,3 % 0,7 % 3,6 % The table shows the companies net financial costs in percent of their net sales. The financial costs have decreased from just below 1 % in 2005 to close to nothing in Both very high net sales and very low financial costs contribute to the low figure. The table below shows that the financial costs in percent of net costs are at a historical low, and the companies in the group had actually financial income. In addition to higher net sales, interest rates were also low throughout 2006, with the companies having solid equity ratios. 10 % Financial cost in % of net sales 8 % 6 % 4 % 2 % 0 % -2 % The Salmon Farming Industry in Norway 2007 Page 18/45

20 5.2.4 A long term study on profitability Company Aggregated turnover in NOK Operating profit Profit before tax NOK % NOK % ALSAKER FJORDBRUK AS % % SALMAR AS % % NOVA SEA AS (SEA FARM INVEST) % % SINKABERG-HANSEN AS % % HØLLALAKS AS % % BREMNES FRYSERI AS % % LERØY HYDROTECH AS % % SJØTROLL HAVBRUK AS % % SENJA SJØFARM AS % % Total % % The weighted average operating margin for the selected companies is 16.7 %, while the accumulated profit margin (before taxes) ended at 14 %. Alsaker Fjordbruk AS has an accumulated profit margin of 27.6% and Salmar has had 21.4%. These figures are not necessary representative for the entire industry. Company Aggregated turnover in NOK Operating profit Profit before tax NOK % NOK % ALSAKER FJORDBRUK AS % % SALMAR AS % % FIRDA MANAGEMENT AS % % MIDT NORSK HAVBRUK AS % % NOVA SEA AS (SEA FARM INVEST) % % SINKABERG HANSEN AS % % NORDLAKS HOLDING AS % % HØLLALAKS AS % % BREMNES FRYSERI AS % % FJORD LAKS AQUA AS % % LERØY HYDROTECH AS % % GRIEG SEAFOOD FINNMARK AS % % BOLAKS AS % % SENJA SJØFARM AS % % SJØTROLL HAVBRUK AS % % Total % % Among the companies included in the table above, 13 companies have achieved more than 10 % in accumulated operating margin during the last six years, compared to 9 last year. The sample has on average managed to get 16.8 % in accumulated operating margin, and 14.8 % in profit margin. Alsaker Fjordbruk AS has an accumulated operating margin of 29.4 % during the last six years. The Salmon Farming Industry in Norway 2007 Page 19/45

21 5.2.5 Equity Equity Ratio Company Change 05 /06 Equity Ratio excl. goodwill and concessions Company Change 05 /06 VILLA GRUPPEN AS 67,7 % 20,4 % 47,3 % VILLA GRUPPEN AS 57,1 % -3,2 % 60,2 % SINKABERG-HANSEN AS 53,6 % 45,3 % 8,3 % SINKABERG-HANSEN AS 47,7 % 37,7 % 10,0 % JØKELFJORD LAKS AS 51,7 % 42,8 % 8,9 % FJORDLAKS AQUA AS 45,0 % 31,7 % 13,2 % SJØTROLL HAVBRUK AS 49,7 % 38,7 % 11,0 % JØKELFJORD LAKS AS 44,1 % 32,6 % 11,5 % MIDT NORSK HAVBRUK AS 48,9 % 36,6 % 12,3 % LERØY AURORA AS 36,9 % 17,4 % 19,5 % FJORDLAKS AQUA AS 46,2 % 33,0 % 13,2 % MIDT NORSK HAVBRUK AS 36,0 % 20,0 % 16,1 % AS BOLAKS 42,3 % 23,3 % 19,0 % FIRDA MANAGEMENT AS 27,8 % 22,7 % 5,1 % SALMAR AS 39,0 % 33,9 % 5,1 % LERØY MIDNOR AS 24,3 % 19,9 % 4,4 % FIRDA MANAGEMENT AS 38,8 % 37,6 % 1,2 % GRIEG SEAFOOD FINNMARK AS 24,3 % 21,9 % 2,4 % NORDLAKS HOLDING AS 38,5 % 29,2 % 9,2 % AS BOLAKS 22,7 % 2,6 % 20,1 % HØLLALAKS AS (Ellingsen Seafood) 37,8 % 29,4 % 8,4 % NORDLAKS HOLDING AS 22,7 % 9,5 % 13,2 % LERØY AURORA AS 36,9 % 17,4 % 19,5 % HØLLALAKS AS (Ellingsen Seafood 22,7 % 8,9 % 13,8 % GRIEG SEAFOOD FINNMARK AS 35,1 % 35,0 % 0,1 % SJØTROLL HAVBRUK AS 21,8 % 7,2 % 14,5 % VESTSTAR HOLDING AS (Lerøy Aute 35,1 % 32,5 % 2,6 % BREMNES FRYSERI AS 17,2 % 11,7 % 5,5 % GRIEG SEAFOOD ROGALAND AS 34,7 % 29,9 % 4,8 % ALSAKER FJORDBRUK AS 14,9 % 19,2 % -4,3 % LERØY MIDNOR AS 33,0 % 33,5 % -0,5 % LERØY FOSSEN AS 12,8 % 26,8 % -14,0 % LERØY FOSSEN AS 32,5 % 37,7 % -5,2 % SENJA SJØFARM AS 11,9 % -6,7 % 18,6 % ALSAKER FJORDBRUK AS 32,4 % 45,1 % -12,7 % GRIEG SEAFOOD ROGALAND AS 9,2 % 0,6 % 8,6 % NOVA SEA AS 31,2 % 33,0 % -1,8 % NOVA SEA AS 6,1 % 1,3 % 4,8 % BREMNES FRYSERI AS 30,1 % 24,6 % 5,5 % SALMAR AS 5,2 % 14,9 % -9,7 % SENJA SJØFARM AS 27,0 % 11,2 % 15,8 % POLARLAKS AS -0,6 % -14,5 % 13,9 % LERØY HYDROTECH AS 24,2 % 41,6 % -17,4 % ARCTIC SEAFOOD HOLDING AS -1,0 % -11,4 % 10,5 % ARCTIC SEAFOOD HOLDING AS 21,2 % 11,2 % 10,0 % VESTSTAR HOLDING AS (Lerøy Au -3,7 % -9,6 % 5,8 % POLARLAKS AS 12,2 % -2,2 % 14,4 % LERØY HYDROTECH AS -31,1 % 12,3 % -43,4 % Weighted average 37,2 % 32,5 % 4,8 % Weighted average 13,7 % 11,2 % 2,5 % The average equity ratio increased by 4.7 percentage points from 2005 to 2006, compared to 12.5 percentage points from 2004 to Most of the companies do now have a solid financial situation after a couple of good years were they have retained a lot of their earnings. 45,0 % 35,0 % 25,0 % 15,0 % 5,0 % Equity Ratio Equity Ratio excl. goodw ill and concessions The graph shows the development in the equity ratio for the regional companies during the last ten years. The equity ratio has fluctuated between 17 % and 37 % on average for the group, and 2006 was the best level seen in these years. -5,0 % -15,0 % The red graph shows the equity ratio less intangible assets, as goodwill and concessions. That ratio has been negative from 2002 to 2004, but around % for 2005 and The Salmon Farming Industry in Norway 2007 Page 20/45

22 60 % Financial structure for the regional companies 50 % 40 % 30 % 20 % 10 % The financial structure for the large regional companies has developed positively in 2006 with higher equity and lower long term debt, but with slightly higher short term debt. 0 % Equity Long term debt Short term debt Liquidity Liquidity Current Ratio Acid Test Ratio Company LERØY AURORA AS 16,55 12,11 4,71 0,96 MIDT NORSK HAVBRUK AS 5,27 6,12 1,67 1,86 JØKELFJORD LAKS AS 4,16 2,71 0,90 0,59 GRIEG SEAFOOD FINNMARK AS 4,09 7,65 0,74 1,87 AS BOLAKS 3,58 1,63 1,04 0,36 FIRDA MANAGEMENT AS 3,11 2,66 0,66 0,40 VILLA GRUPPEN AS 2,86 1,47 1,40 0,42 SINKABERG-HANSEN AS 2,81 2,50 0,93 0,83 SJØTROLL HAVBRUK AS 2,75 2,05 0,54 0,59 GRIEG SEAFOOD ROGALAND AS 2,73 1,71 1,20 0,58 ARCTIC SEAFOOD HOLDING AS 2,51 1,57 0,33 0,20 BREMNES FRYSERI AS 2,36 1,80 0,24 0,30 FJORDLAKS AQUA AS 2,30 2,52 1,01 1,39 SALMAR AS 2,19 1,51 0,40 0,30 NOVA SEA AS 2,12 2,05 0,74 0,59 NORDLAKS HOLDING AS 2,01 2,47 0,78 0,72 LERØY MIDNOR AS 1,93 3,70 0,89 0,83 LERØY FOSSEN AS 1,78 3,69 0,63 1,53 ALSAKER FJORDBRUK AS 1,65 1,87 0,73 0,40 VESTSTAR HOLDING AS (Lerøy A 1,46 1,59 0,28 0,26 SENJA SJØFARM AS 1,22 1,10 0,22 0,33 HØLLALAKS AS (Ellingsen Seafoo 1,12 1,15 0,22 0,24 LERØY HYDROTECH AS 0,97 2,22 0,35 0,57 POLARLAKS AS 0,81 1,10 0,19 0,17 Weighted average 2,12 2,13 0,65 0,56 The current ratio is defined as Current assets divided by current liabilities. It is a general advice that the current ratio should be 2:1 or higher. The acid test ratio is defined as current assets less inventories divided by current liabilities. Current ratio is about the same in 2006 compared to 2005, a little above 2.1, which would be considered as an acceptable ratio for fish farming companies where need for working capital is high and long production cycle leads to high inventories. 2,5 Average current ratio ,0 1,5 1,0 0,5 0,0 The Salmon Farming Industry in Norway 2007 Page 21/45

23 5.2.7 Return on Assets and Return on Equity Return on total capital Return on equity Company Change 05 /06 Company Change 05 /06 LERØY MIDNOR AS 43,2 % 30,3 % 12,9 % LERØY MIDNOR AS 128,4 % 84,4 % 44,1 % AS BOLAKS 39,4 % 22,9 % 16,5 % NOVA SEA AS 103,4 % 67,8 % 35,7 % LERØY AURORA AS 33,7 % 13,2 % 20,5 % AS BOLAKS 86,3 % 68,0 % 18,3 % MIDT NORSK HAVBRUK AS 33,4 % 20,8 % 12,6 % LERØY AURORA AS 85,8 % 58,0 % 27,8 % NOVA SEA AS 32,2 % 23,7 % 8,4 % ALSAKER FJORDBRUK AS 76,9 % 53,7 % 23,2 % JØKELFJORD LAKS AS 30,8 % 21,5 % 9,2 % MIDT NORSK HAVBRUK AS 65,6 % 55,6 % 10,0 % SINKABERG-HANSEN AS 25,9 % 14,7 % 11,2 % SALMAR AS 65,2 % 78,3 % -13,1 % NORDLAKS HOLDING AS 23,9 % 19,9 % 4,0 % LERØY HYDROTECH AS 64,4 % 46,7 % 17,7 % HØLLALAKS AS (Ellingsen Seafood 23,5 % 24,4 % -0,9 % BREMNES FRYSERI AS 63,4 % 66,4 % -2,9 % SALMAR AS 22,5 % 20,8 % 1,7 % HØLLALAKS AS (Ellingsen Seafood) 59,5 % 79,8 % -20,3 % FJORDLAKS AQUA AS 21,2 % 12,6 % 8,6 % NORDLAKS HOLDING AS 58,2 % 64,7 % -6,5 % ALSAKER FJORDBRUK AS 19,1 % 25,0 % -5,9 % JØKELFJORD LAKS AS 57,8 % 47,6 % 10,2 % SENJA SJØFARM AS 18,1 % 13,7 % 4,4 % ARCTIC SEAFOOD HOLDING AS 57,8 % 29,6 % 28,2 % FIRDA MANAGEMENT AS 18,0 % 15,6 % 2,4 % SENJA SJØFARM AS 51,7 % 94,6 % -42,8 % SJØTROLL HAVBRUK AS 17,9 % 14,0 % 3,9 % SINKABERG-HANSEN AS 49,3 % 31,4 % 17,9 % BREMNES FRYSERI AS 16,6 % 12,9 % 3,8 % LERØY FOSSEN AS 44,1 % 23,0 % 21,1 % LERØY HYDROTECH AS 16,6 % 20,8 % -4,2 % FIRDA MANAGEMENT AS 43,0 % 37,2 % 5,8 % LERØY FOSSEN AS 16,2 % 9,8 % 6,4 % GRIEG SEAFOOD FINNMARK AS 42,9 % 29,7 % 13,2 % GRIEG SEAFOOD FINNMARK AS 15,3 % 9,1 % 6,1 % SJØTROLL HAVBRUK AS 40,7 % 31,5 % 9,2 % ARCTIC SEAFOOD HOLDING AS 14,8 % 5,6 % 9,1 % FJORDLAKS AQUA AS 39,0 % 34,8 % 4,2 % GRIEG SEAFOOD ROGALAND AS 12,9 % 5,4 % 7,5 % GRIEG SEAFOOD ROGALAND AS 33,1 % 12,8 % 20,3 % VESTSTAR HOLDING AS (Lerøy Au 12,6 % 4,5 % 8,0 % VESTSTAR HOLDING AS (Lerøy Aut 30,0 % 6,5 % 23,5 % VILLA GRUPPEN AS 9,7 % 16,0 % -6,3 % VILLA GRUPPEN AS 8,6 % 71,1 % -62,5 % POLARLAKS AS -16,6 % 11,7 % -28,3 % POLARLAKS AS -170,6 % -312,5 % 142,0 % Weighted average 22,0 % 16,8 % 5,2 % Weighted average 59,6 % 50,3 % 9,3 % The table shows that the average return on the total assets has increased from 16.8 % in 2005 to 22 % in The two Lerøy companies, Midnor and Aurora, achieved a return above 43 % and 33 %, respectively in 2006, while also Bolaks was close to 40 %. The average return on Equity ended at 59.6 %, compared to 50.3 % in 2005, a major improvement from Only Polarlaks had a negative return on total capital and Return on Equity in The Salmon Farming Industry in Norway 2007 Page 22/45

24 5.3 The small and midsized companies The small and midsized companies include a group of 24 randomly sampled salmon farming companies with 1 5 ongrowing licenses located all over Norway. COMPANY Concessions pr No MTB Arnøy Laks AS Eide Fjordbruk AS Emilsen Fisk AS Eidesvik Laks AS Knutshaugfisk AS Pundslett Laks AS Espevær Fiskeoppdrett AS Feøy Fiskeoppdrett AS Selsøyvik Havbruk AS Bru Eigedom AS (Steinvik Fiskefarm) Wenberg Fiskeoppdrett AS Wilsgård Fiskeoppdrett AS Stettefisk AS Lovundlaks AS Kobbevik & Furuholmen Fiskeoppdrett AS Landøy Fiskeoppdrett AS E. Karstensen Fiskeoppdrett AS Marø Havbruk AS Fylkesnes Fisk AS Egil Kristoffersen & Sønner AS Brilliant Fiskeoppdrett AS Sulefisk AS Langøylaks AS K. Strømmen Fiskeoppdrett AS TOTAL These companies have 82 ongrowing licenses with a MTB of tonnes in by the end of The companies have been randomly selected, but both based on geographical location and the number of licenses. The Salmon Farming Industry in Norway 2007 Page 23/45

25 5.3.1 Net sales NET SALES - MILL. NOK OPERATING PROFIT - MILL NOK NET PROFIT BEFORE TAXES - MILL NOK Company CHANGES 05/ Arnøy Laks AS ,3 % Eide Fjordbruk AS ,6 % Emilsen Fisk AS ,9 % Eidesvik Laks AS ,5 % Knutshaugfisk AS ,2 % Pundslett Laks AS ,4 % Espevær Fiskeoppdrett AS ,3 % Feøy Fiskeoppdrett AS ,5 % Selsøyvik Havbruk AS ,6 % Bru Eigedom AS (Steinvik Fiskefarm) ,4 % Wenberg Fiskeoppdrett AS ,6 % Wilsgård Fiskeoppdrett AS ,2 % Stettefisk AS ,5 % Lovundlaks AS ,4 % Kobbevik & Furuholmen Fiskeoppdrett A ,4 % Landøy Fiskeoppdrett AS ,9 % E. Karstensen Fiskeoppdrett AS ,4 % Marø Havbruk AS ,5 % Fylkesnes Fisk AS ,3 % Egil Kristoffersen & Sønner AS ,9 % Brilliant Fiskeoppdrett AS ,8 % Sulefisk AS ,8 % Langøylaks AS ,1 % K. Strømmen Fiskeoppdrett AS ,7 % Total ,4 % The total net sales for the group reached NOK million in 2006, which is an increase of 20.4 % compared with the previous year. The small and midsized companies have improved their results. The operating profit ended at NOK mill. in 2006 in compared to mill in In the same period the net profit before tax increased with NOK mill. It is not unusual that the net sales of smaller companies fluctuate. The Salmon Farming Industry in Norway 2007 Page 24/45

26 5.3.2 Operating margins OPERATING MARGIN PROFIT MARGIN COMPANY COMPANY Arnøy Laks AS 29,5 % 22,5 % 7,3 % Arnøy Laks AS 28,9 % 21,6 % 3,4 % Eide Fjordbruk AS 38,5 % 4,6 % 8,5 % Eide Fjordbruk AS 37,8 % 3,9 % 7,8 % Emilsen Fisk AS 42,4 % 15,7 % 7,5 % Emilsen Fisk AS 41,9 % 12,9 % 2,6 % Eidesvik Laks AS 28,5 % 12,1 % -5,0 % Eidesvik Laks AS 24,8 % 5,1 % -12,1 % Knutshaugfisk AS 38,3 % -1,1 % 18,6 % Knutshaugfisk AS 37,3 % -1,2 % 18,4 % Pundslett Laks AS 32,9 % 27,6 % 12,9 % Pundslett Laks AS 34,0 % 30,2 % 11,8 % Espevær Fiskeoppdrett AS 24,9 % 18,0 % -16,1 % Espevær Fiskeoppdrett AS 22,7 % 5,2 % -21,1 % Feøy Fiskeoppdrett AS 32,9 % 20,3 % -20,8 % Feøy Fiskeoppdrett AS 38,6 % 16,5 % -30,3 % Selsøyvik Havbruk AS 36,2 % 32,0 % 7,8 % Selsøyvik Havbruk AS 36,2 % 30,0 % 5,5 % Bru Eigedom AS (Steinvik Fiskefarm) 23,8 % 22,1 % 23,2 % Bru Eigedom AS (Steinvik Fiskefarm) 21,5 % 20,0 % 20,7 % Wenberg Fiskeoppdrett AS 38,4 % 28,5 % 16,6 % Wenberg Fiskeoppdrett AS 37,3 % 29,9 % 11,6 % Wilsgård Fiskeoppdrett AS 23,8 % 25,2 % 6,2 % Wilsgård Fiskeoppdrett AS 21,8 % 22,5 % 6,0 % Stettefisk AS 1,0 % 20,6 % 18,6 % Stettefisk AS 0,9 % 19,0 % 18,9 % Lovundlaks AS 45,1 % 28,0 % -3,1 % Lovundlaks AS 42,9 % 24,8 % -5,2 % Kobbevik & Furuholmen Fiskeoppdrett A 29,6 % 24,4 % -6,5 % Kobbevik & Furuholmen Fiskeoppdrett A 26,3 % 22,0 % -11,0 % Landøy Fiskeoppdrett AS 34,2 % 18,4 % 13,4 % Landøy Fiskeoppdrett AS 33,0 % 15,6 % 8,9 % E. Karstensen Fiskeoppdrett AS 41,3 % 28,7 % 15,0 % E. Karstensen Fiskeoppdrett AS 48,9 % 30,5 % 14,5 % Marø Havbruk AS 39,5 % 18,0 % 14,3 % Marø Havbruk AS 40,9 % 18,8 % 14,7 % Fylkesnes Fisk AS 36,9 % 18,2 % 1,6 % Fylkesnes Fisk AS 35,6 % 24,2 % -2,8 % Egil Kristoffersen & Sønner AS 26,3 % 12,8 % 5,2 % Egil Kristoffersen & Sønner AS 24,5 % 10,7 % 2,6 % Brilliant Fiskeoppdrett AS 14,9 % 17,8 % -5,0 % Brilliant Fiskeoppdrett AS 3,1 % 8,4 % -14,2 % Sulefisk AS 23,5 % 26,0 % -3,2 % Sulefisk AS 22,9 % 23,8 % -6,9 % Langøylaks AS 18,4 % 21,0 % 2,7 % Langøylaks AS 16,2 % 18,5 % -1,2 % K. Strømmen Fiskeoppdrett AS 16,5 % 20,4 % 10,7 % K. Strømmen Fiskeoppdrett AS 16,9 % 20,2 % 10,6 % Total 31,4 % 21,0 % 6,9 % Total 30,3 % 19,0 % 3,7 % The operating margin for the whole group ended at 31.4 % compared with 21% in There are large differences between the companies, but none of the companies had a negative operating margin in Lovundlaks had an operating margin above 45 %, which is the highest for all the companies included in this report. The profit margin in year 2006 was on average 30.3 % for the sample, which is an increase of 11.3 percentage points from of the companies achieved a profit margin above 40 %, while none of the companies had a negative profit margin in The Salmon Farming Industry in Norway 2007 Page 25/45

27 5.3.3 Financial costs FINANCIAL COSTS IN PERCENT OF NET SALES COMPANY CHANGES 05 / Arnøy Laks AS 0,5 % 1,0 % -0,4 % 3,9 % Eide Fjordbruk AS 0,7 % 0,8 % 0,0 % 0,7 % Emilsen Fisk AS 0,5 % 2,8 % -2,3 % 4,9 % Eidesvik Laks AS 3,7 % 6,9 % -3,2 % 7,1 % Knutshaugfisk AS 1,0 % 0,1 % 0,9 % 0,3 % Pundslett Laks AS -1,1 % -2,6 % 1,5 % 1,2 % Espevær Fiskeoppdrett AS 2,2 % 12,8 % -10,6 % 5,0 % Feøy Fiskeoppdrett AS -5,7 % 3,8 % -9,4 % 9,5 % Selsøyvik Havbruk AS 0,0 % 1,9 % -1,9 % 2,3 % Bru Eigedom AS (Steinvik Fiskefarm) 2,3 % 2,1 % 0,2 % 2,4 % Wenberg Fiskeoppdrett AS 1,1 % -1,3 % 2,5 % 5,0 % Wilsgård Fiskeoppdrett AS 2,1 % 2,7 % -0,6 % 0,3 % Stettefisk AS 0,1 % 1,5 % -1,4 % -0,3 % Lovundlaks AS 2,2 % 3,2 % -1,0 % 2,1 % Kobbevik & Furuholmen Fiskeoppdrett AS 3,3 % 2,4 % 0,9 % 4,5 % Landøy Fiskeoppdrett AS 1,2 % 2,8 % -1,6 % 4,5 % E. Karstensen Fiskeoppdrett AS -7,6 % -1,8 % -5,8 % 0,4 % Marø Havbruk AS -1,4 % -0,8 % -0,5 % -0,4 % Fylkesnes Fisk AS 1,3 % -6,0 % 7,3 % 4,4 % Egil Kristoffersen & Sønner AS 1,9 % 2,1 % -0,3 % 2,6 % Brilliant Fiskeoppdrett AS 11,8 % 9,4 % 2,4 % 9,2 % Sulefisk AS 0,6 % 2,3 % -1,6 % 3,7 % Langøylaks AS 2,2 % 2,4 % -0,2 % 3,9 % K. Strømmen Fiskeoppdrett AS -0,4 % 0,3 % -0,7 % 0,1 % TOTAL 1,1 % 1,95 % -0,8 % 3,16 % The table shows the net financial costs as a percentage of the companies net sales. The financial costs compared to the net sales have in average been reduced from 1.95 % to 1.1 % from 2005 to Generally, the Norwegian salmon farming industry has a very solid financial basis at the moment, which is also the case for the regional companies. Please note that net sales increased with 20.4 % in the same period. The Salmon Farming Industry in Norway Page 26/45

28 5.3.4 Capital structure 2006 Balance for the total sample Changes In thousand % In thousand % In thousand % Fixed Assets ,9 % ,0 % ,3 % 18,0 % Inventories ,0 % ,0 % ,9 % 29,0 % Other Current Assets ,1 % ,0 % ,8 % 67,9 % Total ,0 % ,0 % ,0 % 32,2 % Equity ,0 % ,5 % ,2 % 53,2 % Provide for commitments % ,1 % ,2 % 62,8 % Long-term Debt % ,8 % ,4 % -4,5 % Interest bearing short term debt % ,2 % ,6 % 13,9 % Other short term debt % ,4 % ,6 % 50,2 % Total % ,0 % ,0 % 32,2 % Current Ratio 2,21 2,10 1,70 5,1 % Acid Test Ratio 0,80 0,64 0,42 25,3 % Return on Total Assets 29,2 % 18,6 % 3,9 % 15,8 % Return on Equity 54,3 % 39,8 % 7,2 % 36,3 % Assets turnover 0,81 0,89 0,76-8,9 % Equity Ratio 40,0 % 34,5 % 27,2 % 15,8 % Interest bearing debt / Total Assets 31,4 % 41,0 % 51,1 % 29,0 % The table shows that the small and medium-sized companies total assets have increased in 2006 compared to The average equity ratio of 40 % must be said to be very strong. Return on equity was above 54 % in 2006, which is very strong! The liquidity for this group, measured by the current ratio and the acid test ratio, continued to improve in 2006 and were much higher than the previous years and above 2.2 (current ratio) and 0.8 (acid test ratio), which is considered as good as a rule of thumb. The Salmon Farming Industry in Norway Page 27/45

29 5.4 Comparison of key figures between the categories The table below compares the key figures for the three groups of companies included in the analysis. The figures presented are average figures for each group. Multinational companies Regional companies Small and midsize companies Net Sales (mill NOK) Operating Margin 29,8 % 14,3 % 31,8 % 23,3 % 31,4 % 17,8 % EBITDA 24 % 16,9 % 35,1 % 27,0 % 34,3 % 23,9 % Financial Costs/ Revenues 1,4 % 1,1 % -0,3 % 0,7 % 1,1 % 2,0 % Profitmargin 28,3 % 13,2 % 32,1 % 22,6 % 30,3 % 19,0 % Total Assets Return on Total Assets 10,2 % 1,5 % 22,0 % 16,8 % 29,2 % 18,6 % Equity Equity Ratio 41,2 % 34,0 % 37,2 % 32,5 % 40,0 % 34,5 % Return on Equity 54 % 37 % 59,6 % 50,3 % 54,3 % 39,8 % Equity Ratio ex int. Assets 26 % 16 % 13,7 % 11,2 % 40,0 % 34,5 % Assets Turnover 0,78 0,96 0,69 0,72 0,81 0,89 Current Ratio 2,36 3,10 2,12 2,13 2,21 2,10 Acid Test Ratio 1,37 1,83 0,65 0,56 0,80 0,64 The comparison shows that the regional companies have achieved the best results during 2006, just ahead of the small and midsized companies. While the small and midsized companies had an operating margin and profit margin of respectively 31.4 % and 30.3 %, the comparable numbers for the regional companies were 31.8 % and 32.1 %. The multinational companies ended at an operating margin of 29.8 % and a profit margin of 28.3 %, which is a major improvement compared to 2005, and shows that the multinational companies are almost as profitable as the smaller companies. The Norwegian subsidiaries of the multinational companies do now have the highest equity ratio and the best liquidity measured by current ratio and the acid test ratio. Equity development in % of the total asset ,0 % 40,0 % 35,0 % 30,0 % 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % 0,0 % Multinational subs Regional Small and Midsize The Salmon Farming Industry in Norway Page 28/45

30 6 Large Norwegian exporters It is about 150 registered salmon farming exporters in Norway. Of these, there are about 120 companies that actually sold salmon and trout during Public statistic shows that 15 of the companies represented 80 % of the exported quantity of salmon and trout, down from 17 last year. In our survey we have included 12 salmon exporters where the major share of the net sales comes from the exporting business. The survey is not a list over the largest salmon exporting companies in Norway, but a list over large independent exporters. A total list would have to include companies like Marine Harvest, Fjord Seafood etc. Number of exporters to cover 80 % of export volume Net sales NET SALES - MILL. NOK OPERATING PROFIT - MILL. NOK COMPANY CHANGE 05 / CHANGE 05 / Hallvard Lerøy AS ,1 % ,1 % 70 Coast Seafood AS ,5 % ,2 % 18 Norway Royal Salmon AS ,4 % ,7 % 2 Aalesundfisk AS ,5 % ,7 % 5 Seaborn AS ,3 % ,5 % 6 Gaia Seafood AS ,6 % ,9 % 1 Orion Seafood AS ,2 % ,0 % 7 Nisja Trading AS ,0 % ,7 % 1 Sirena Norway AS ,5 % ,8 % -2 Sea Star International AS ,1 % ,5 % 13 Norwell AS ,7 % ,7 % -2 Christiansen Partner AS ,1 % ,0 % 3 SUM ,5 % ,2 % 126 Total net sales for the group reached bnok 12.1 in 2006, compared to bnok 10.8 in 2005, an increase of 12.5 %. The Salmon Farming Industry in Norway Page 29/45

31 6.2. Operating profit / profit before taxes OPERATING PROFIT - MILL. NOK PROFIT BEFORE TAX - MILL. NOK COMPANY COMPANY Hallvard Lerøy AS 100,1 72,5 70,4 Hallvard Lerøy AS 94,2 72,4 67,8 Coast Seafood AS 40,8 10,9 18,4 Coast Seafood AS 42,4 11,1 17,3 Norway Royal Salmon AS 19,1 14,8 1,7 Norway Royal Salmon AS 31,0 21,7-27,6 Aalesundfisk AS -3,3-15,6 5,1 Aalesundfisk AS -8,3-32,9-1,9 Seaborn AS 16,9 13,3 5,9 Seaborn AS 15,0 12,1 5,0 Gaia Seafood AS 3,6 2,9 1,5 Gaia Seafood AS 1,8 1,6 0,7 Orion Seafood AS 5,2 5,1 6,6 Orion Seafood AS 4,8 5,2 6,1 Nisja Trading AS 0,3 0,1 1,0 Nisja Trading AS 0,4 0,0 1,0 Sirena Norway AS 2,0 2,0-2,1 Sirena Norway AS 1,7 1,9-2,4 Sea Star International AS 0,5 10,4 12,9 Sea Star International AS -5,1 9,0 11,3 Norwell AS 14,9 5,6-1,9 Norwell AS 8,8 1,9-5,3 Christiansen Partner AS 0,3 0,4 3,0 Christiansen Partner AS -0,2 0,2 2,5 TOTAL 200,2 128,1 126,4 TOTAL 186,6 105,1 74,5 The companies total operating profit was about 200 million NOK in 2006, considerably higher than in both 2004 and The profit before tax ended at about 187 million NOK. Several of the companies in the sample increased profit before tax from 2005 to 2006, while only three companies in the sample had negative profits in The Salmon Farming Industry in Norway Page 30/45

32 6.3. Operating margin / profit margin OPERATING MARGIN PROFIT MARGIN (before taxes) COMPANY COMPANY Hallvard Lerøy AS 2,14 % 2,08 % 2,28 % Hallvard Lerøy AS 2,01 % 2,08 % 2,20 % Coast Seafood AS 2,1 % 0,7 % 1,5 % Coast Seafood AS 2,2 % 0,7 % 1,5 % Norway Royal Salmon AS 1,5 % 1,5 % 0,2 % Norway Royal Salmon AS 2,5 % 2,2 % -3,8 % Aalesundfisk AS -0,6 % -2,6 % 0,9 % Aalesundfisk AS -1,6 % -5,5 % -0,3 % Seaborn AS 1,4 % 1,5 % 1,0 % Seaborn AS 1,3 % 1,4 % 0,9 % Gaia Seafood AS 0,8 % 0,9 % 0,6 % Gaia Seafood AS 0,4 % 0,5 % 0,3 % Orion Seafood AS 3,5 % 3,1 % 4,5 % Orion Seafood AS 3,2 % 3,2 % 4,1 % Nisja Trading AS 0,2 % 0,1 % 0,8 % Nisja Trading AS 0,3 % 0,0 % 0,7 % Sirena Norway AS 1,1 % 1,2 % -1,7 % Sirena Norway AS 0,9 % 1,1 % -1,9 % Sea Star International AS 0,1 % 1,0 % 1,8 % Sea Star International AS -0,6 % 0,9 % 1,6 % Norwell AS 2,9 % 1,2 % -0,4 % Norwell AS 1,7 % 0,4 % -1,2 % Christiansen Partner AS 0,1 % 0,3 % 1,1 % Christiansen Partner AS -0,1 % 0,2 % 1,0 % Average 1,7 % 1,2 % 1,4 % Average 1,5 % 1,0 % 0,8 % The survey shows that the exporters have to sell large quantities to make a profit, since they are operating with so tight margins. The operating margin has on average increased from 1.2 % in 2005 to 1.7 % in In the same period, the profit margin has increased from 1 % to 1.5 %. The Salmon Farming Industry in Norway Page 31/45

33 7 Short comments on the companies 7.1 Regional companies Alsaker Fjordbruk AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 32,4 % 10 % Harvest quantity (in tonnes wfe) No of licenses 20 Maximum biomass in tonnes % -30 % The local entrepreneur Gerhard Meidell Alsaker control 100 % of the shares in Alsaker Fjordbruk. The company owns 20 ongrowing licences, several hatcheries and a packing station. The company is located in Onarheim in Tysnes municipal. During 2006 the company bought one licence from Amøy Fiskeoppdrett. Alsaker Fjordbruk is one of the most efficient fish farmers in the world, with one of the highest operating margins year after year. Alsvåg Group (Arctic Seafood Holding AS) Net sales (NOK 1000) % Operating profit Profit before tax % 10 % Equity ratio 21,2 % Harvest quantity (in tonnes wfe) % No of licenses 9-30 % Maximum biomass in tonnes % Operating margin Average Operating Margin The Alsvåg Group contains many companies which operate within salmon farming and smolt production, cod farming and juveniles production for cod, shellfish farming, packing station, wellboats and a factory producing styropore boxes. The Alsvåg Group is controlled by Svein Hansen and the headquarter is located in Nordland, but also with production facilities in Troms. The company owns 9 ongrowing licences for salmon farming. The Salmon Farming Industry in Norway Page 32/45

34 LERØY SEAFOOD GROUP Lerøy Seafood Group is a Oslo stock listed company. In addition to being Norway s largest exporter of seafood through Hallvard Lerøy, the company has over the last years bought several farming companies. In 2007, Veststar was bought, and named Lerøy Austevoll. The salmon farming divisions of Lerøy Seafood Group operated quite independently through own legal entities, and it therefore makes sense to include them as separate regional companies Lerøy Aurora AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 36,9 % Harvest quantity (in tonnes wfe) No of licenses 16 Maximum biomass in tonnes % -10 % -30 % Company is operating I Troms county. Lerøy Fossen AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 32,5 % 10 % Harvest quantity (in tonnes wfe) % No of licenses 6 Maximum biomass in tonnes % Lerøy Fossen AS is a fully integrated company with full control of the whole value chain from smolt production, farming and processing, to export. In addition to selling a lot of processed products for exports and domestically, the company is a major trout producer. The company is located in Hordaland. Lerøy Hydrotech AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 24,2 % 10 % Harvest quantity (in tonnes wfe) No of licenses % Maximum biomass in tonnes % Lerøy Seafood Group ASA bought all the shares in August Hydrotech operates in Møre og Romsdal and produce trout in addition to salmon. The Salmon Farming Industry in Norway Page 33/45

35 Lerøy Midnor AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 33,0 % Harvest quantity (in tonnes wfe) No of licenses 28 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Lerøy Midnor operates in the counties of Møre and Romsdal and Sør Trøndelag, and have 28 licenses. Lerøy Austevoll AS (Veststar AS) Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 35,1 % Harvest quantity (in tonnes wfe) No of licenses 28 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % -50 % -70 % -90 % Operating margin Average Operating Margin In 2006 Lerøy Seafood Group bought 100 % of the shares in Veststar, and the company changed name to Lerøy Austevoll AS. The company was earlier owned by Austevoll Seafood ASA, which as a part of the agreement is the largest share holder in Lerøy Seafood Group. Lerøy Austevoll is vertically integrated with hatcheries, 28 ongrowing licences and packing facilities. The sales department of Lerøy Seafood Group is taking care of the sales. AS Bolaks Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 42,3 % Harvest quantity (in tonnes wfe) No of licenses 8 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % -50 % Operating margin Average Operating Margin Bolaks is located in the municipal of Fusa in Hordaland and is owned by the Holmefjord family. Bolaks is related to the salmon ova company, SalmoBreed. They also own a hatchery and a smolt plant through Sævareid. The company has also their own packing facility and is a minor shareholder in the exporter Aalesundfisk AS. The Managing director in the company is Bjørg Mette Holmefjord Antonsen. The Salmon Farming Industry in Norway Page 34/45

36 Bremnes Fryseri AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 30,1 % Harvest quantity (in tonnes wfe) No of licenses 11 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Bremnes Fryseri is owned by the Svendsen family, - Olav Svendsen jr. is managing director. The company s operations include freshwater- and saltwater operations, freezing, packing and secondary processing of salmon. Their operations take place in Rogaland and Hordaland. In 2.quarter of 2007 Bremnes sold their shares in Hjaltland Seafarms to Grieg Seafood AS. Firda Management AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 38,8 % Harvest quantity (in tonnes wfe) NA No of licenses 12 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Firda Management is located in Gulen municipal in Sogn & Fjordane. The company owns 12 ongrowing licences and several freshwater sites. Firda Management is owned 100 % of Ola Braanaas. The company is producing both Atlantic salmon and large rainbow trout. Fjordlaks Aqua AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 46,2 % Harvest quantity (in tonnes wfe) No of licenses 7 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Fjordlaks Aqua is a member in the Fjordlaks Group, which is a large clipfish producer. Fjordlaks Aqua does not produce Atlantic salmon, but is one of Norway s biggest trout producers. In 2006 Fjordlaks build a new factory in Finnmark for fresh whitefish. Additionally they raise cod and other marine species. The company is 100 % owned by Anders Pedersen. The company is integrated with their own wellboat, hatchery and packing station. Fjordlaks is located in Møre og Romsdal. The Salmon Farming Industry in Norway Page 35/45

37 GRIEG SEAFOOD After the merger between Grieg Seafood and Volden Group, Grieg Seafood ASA has been listed on Oslo stock exchange. Grieg Seafood Rogaland AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 34,7 % Harvest quantity (in tonnes wfe) No of licenses 14 Maximum biomass in tonnes % -10 % -30 % Grieg Seafood is a part of the Grieg Group, which is a money maker that also operates within shipping, logistic insurance and more. On the other hand, the aquaculture division has lost money nearly every year. The annual accounts for 2005 were not available for us at the time of this report being published. The company has their operations in Rogaland. Grieg Seafood Finnmark AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 35,1 % Harvest quantity (in tonnes wfe) No of licenses 22 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % -50 % Operating margin Average Operating Margin Previously known as Volden Group and have their operations in Finnmark. Høllalaks AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 37,8 % Harvest quantity (in tonnes wfe) No of licenses 8 Maximum biomass in tonnes % -10 % -30 % Høllalaks is controlled by the Ellingsen family, which also operates within whitefish and whale meat. K.J Ellingsen harvests and sells all the salmon for Høllalaks. Seafarm Invest AS owns 26 % of the shares. The company owns and operated a hatchery Silver Seed AS. The company has its operations in Nordland. In 2006 they bought 100 % of the shares in Musken laks who owns 2 ongrowing licences. Line Ellingsen is the managing director. The Salmon Farming Industry in Norway Page 36/45

38 Jøkelfjord Laks AS Net sales (NOK 1000) % Operating profit Profit before tax % Operating margin Average Operating Margin Equity ratio 51,7 % 10 % Harvest quantity (in tonnes wfe) No of licenses 6 Maximum biomass in tonnes % -30 % Jøkelfjord Laks AS is located in the municipal of Kvænangen in Troms. The company owns 6 ongrowing licences, 1 hatchery/freshwater licence and a packing station. The company is owned by managing director Arvid Hansen, Arne Evensen, Arnold Sollund and Terje Kildal Rønning. Midt Norsk Havbruk AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 48,9 % 10 % Harvest quantity (in tonnes wfe) No of licenses 9 Maximum biomass in tonnes % -30 % Midt Norsk Havbruk is mainly owned by the Sivertsen and the Williksen families, while managing director Roald Dolmen owns about 12 % of the shares. They also own 100 % in the processing and export company Williksen AS. The company s operations are in Nord- Trøndelag. When the new regulation system MAB (maximum allowable biomass) was introduced, they started a co-operation with a smaller fish farmer called Bjørøya Fiskeoppdrett. Bjørøya Fiskeoppdrett owns 3 licences and is controlled by the Løfsnes family. Nordlaks Holding AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 38,5 % 10 % Harvest quantity (in tonnes wfe) % No of licenses 23 Maximum biomass in tonnes % Nordlaks Holding AS is fully owned by the local entrepreneur Inge Berg. The company is located in Stokmarknes in Hadsel municipal. Nordlaks owns 23 ongrowing licences in Nordland and Troms. The packing station and processing plant is located in Stokmarknes. Together with several hatcheries the company is covering the whole life cycle from ova to processed products. Nordlaks is the only company that is not affected by the MIP measures from EU. The Salmon Farming Industry in Norway Page 37/45

39 Polarlaks AS Net sales (NOK 1000) Operating profit % Profit before tax % Equity ratio 12,2 % 10 % Harvest quantity (in tonnes wfe) % No of licenses % Maximum biomass in tonnes % Operating margin Average Operating Margin The company operates in Finnmark and was by the end of 2006 bought by Cermaq. Salmar AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 39,0 % Harvest quantity (in tonnes wfe) No of licenses 37 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Salmar is the largest regional company in Norway. The administration and processing plant is located in Frøya municipal in Mid-Norway. The company owns 46 ongrowing licenses primary in the region. In 2006 SalMar bought the rest of the shares in Senja Sjøfarm in Troms, which now is a fully owned company. They also bought 2 licences and a hatchery from Halsa Fiskeoppdrett AS in January The company owns 50 % of the shares in Norskott a company established by SalMar and Lerøy Seafood group to buy and operate Scottish Seafarm Ltd in UK. In 2.quarter of 2007, Norskott bought Pan Fish Scotland from Marine Harvest group. SalMar was listed on the Oslo Stock Exchange in May 2007, and is controlled by Gustav Witsøe with more than 50 % of the shares. Senja Sjøfarm AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 27,0 % 10 % Harvest quantity (in tonnes wfe) % No of licenses 8 Maximum biomass in tonnes % Senja Sjøfarm was owned by the Nergård-Group (51 %) and Salmar (49 %) in During 2006 SalMar bought Nergård-Groups shares and is now controlling the whole company. The company owns 9 ongrowing licences. The company operates in the county of Troms. The Salmon Farming Industry in Norway Page 38/45

40 Nova Sea AS Net sales (NOK 1000) Operating profit Profit before tax % 30 % Operating margin Average Operating Margin Equity ratio 31,2 % 10 % Harvest quantity (in tonnes wfe) % No of licenses 28 Maximum biomass in tonnes % Seafarm Invest changed name to Nova Sea during By the end of 2006 the company bought 2 licenses from Skjelbulaks and is now controlling 28 licences. The headquarters and packing station is located at the island Lovund in Nordland. The majority of the shares in Nova Sea are owned by the Olaisen family. The second largest share holder is the multinational company Marine Harvest group. Sinkaberg-Hansen AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 53,6 % Harvest quantity (in tonnes wfe) No of licenses 13 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Sinkaberg Hansen is a family controlled company located in Rørvik in Vikna Municipal. The company owns 13 licences, and their operations is in Nord-Trøndelag and Nordland. The company has own smolt production, and also a packing station with facilities for fillet production. Sjøtroll Havbruk AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 49,7 % Harvest quantity (in tonnes wfe) No of licenses 23 Maximum biomass in tonnes ,0 % 30,0 % 10,0 % -10,0 % -30,0 % -50,0 % Operating margin Average Operating Margin Sjøtroll is located in Austevoll municipal on the west coast of Norway. The company owns 23 ongrowing licences and several hatcheries. The company is taking care of the harvesting in their own packing station and processing plant. Sjøtroll owns approx. 28 % of the shares in Salmobreed, which is the second largest ova producer in Norway. The feed producer Biomar is the major share holder and in the 1.half of 2007 they increased their share from 40 to approx. 50 % of the shares. CEO Frode Møgster with family owns the rest of the shares in the company. Sjøtroll is one of the largest trout producers in Norway. The Salmon Farming Industry in Norway Page 39/45

41 Villa Gruppen AS Net sales (NOK 1000) Operating profit Profit before tax Equity ratio 67,7 % Harvest quantity (in tonnes wfe) No of licenses 19 Maximum biomass in tonnes % 30 % 10 % -10 % -30 % Operating margin Average Operating Margin Villa Salmon was started by the entrepreneurs Johan Andreassen and Bjørn Vegard Løvik, and today they own approx. 33 % of the company. Other shareholders are the Oslo based company Centennial AS, which is controlled by Endre Røsjø with family, and a local company called Akvainvest. Akvainvest is a company controlled by several local families. Villa Salmon owns 19 licences where approx. 5 of them are located in Møre og Romsdal. The rest of the licences are located in Finnmark, where the company is planning to increase their production of Atlantic salmon and trout. Villa Salmon are one of few producers of organic salmon and cod. The Salmon Farming Industry in Norway Page 40/45

42 7.2 Large salmon exporters in Norway Hallvard Lerøy AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 17,2 % Net sales in NOK Hallvard Lerøy AS is a subsidiary of Lerøy Seafood Group and the largest exporter of Norwegian salmon and trout. Since 2003 Lerøy Seafood Group has bought several salmon farming companies in Norway and Scotland and a large share of their total sale is now own produced salmon and trout. The company operates through subsidaries several companies in Norway, Sweden, France and Turkey. They also own Norskott Havbruk AS with SalMar. Norskott owns 100 % of the shares in Scottish Seafarms, one of the largest salmon producers in Scotland. Lerøy Seafood Group is listed at the Oslo Stock Exchange. The largest shareholders are Austevoll Seafood and CEO Ole Erik Lerøy. Coast Seafood AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 25 % Net sales in NOK Coast Seafood AS is one of the largest exporters of Atlantic salmon and trout in Norway, with no majority interests in on growing production. The company is major owned by the employees, and the administration is located in the municipal of Måløy. They have a sales department in Bergen, a fully owned company - Coast Polaris which was purchased in In the municipal of Sotra, Coast Seafood has a processing plant. The company bought 100 % of the shares in Måløy Seafood in February 2007, which is a packing station for pelagic fish. The Salmon Farming Industry in Norway Page 41/45

43 Norway Royal Salmon AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 39 % Net sales in NOK Norway Royal Salmon (NRS) is a network company, which is integrated in the value chain from smelt production to sales of the fish. NRS is owned by the members in the network, which controls approx. 70 on growing licences in Norway. Headquarter is located in Trondheim, with a sales office in Kristiansand. The members of NRS are obliged to sell approx. 70 % of their production through NRS sales department. Aalesundfisk AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 23 % Net sales in NOK Seaborn AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 17 % Net sales in NOK Seaborn AS is a network company owned by the members, and was founded in The largest shareholders are Steinvik Fiskefarm and Artctic Seafood Holding. The administration is located in Bergen. The main product is Atlantic salmon and trout, but they are also selling whitefish. The Salmon Farming Industry in Norway Page 42/45

44 Gaia Seafood AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 13 % Net sales in NOK Gaia Seafood was established in Trondheim in 2002 after the bankruptcy of Terra Seafood AS. The owners of Gaia Seafood are former employees and management from this company. They main species are salmon and trout, but they also have a white fish sales department. Orion Seafood AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 30 % Net sales in NOK Orion Seafood which is located in Ålesund is managed by the former sales manager in Pan Fish, Helge Fiskerstrand. Orion Seafood is a relatively newly established company with Eastern Europe as the main market. The company is owned by Helge Fiskarstrand and Zarina Helle. Nisja Trading AS (NOK 1000) Net Sales Operating Profit 261 Profit before tax 400 Equity Ratio 2 % Net sales in NOK Nisja Trading is an independent import export company which is located in Bergen. Roy Åge Nilsen is managing director. He does also hold the majority of the shares. Jonny Kvaløysæter owns the rest of the shares in the company. The Salmon Farming Industry in Norway Page 43/45

45 Sirena Norway AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 15 % Net sales in NOK Through the subsidiary, Sirena Norway, the Danish company Sirena Salmon handle purchase and sale of trout and salmon from Norway. Sirena is an independent trader without financial connections to any salmon farming companies. The parent company Sirena Group located in Copenhagen Denmark has a wide co-operation with trawlers and processing plants around the world. The Sirena Group has many sales departments around the world, and sells several kinds of seafood. Sea Star International AS (NOK 1000) Net Sales Operating Profit 475 Profit before tax Equity Ratio 6,2 % Net sales in NOK Sea Star International is the sales company for Austevoll Seafood ASA. The company trades all species that the Austevoll Seafood s fleet is catching around the world. They have also sold the Atlantic salmon for Veststar, but after Veststar was sold to Lerøy Seafood Group (LSG) they will focus on pelagic fish. Austevoll Seafood ASA is listed on the Oslo Stock Exchange and the largest share holder is the Mobster family. Norwell AS (NOK 1000) Net Sales Operating Profit Profit before tax Equity Ratio 14 % Net sales in NOK Norwell is a network company and is owned by a selection of mainly small fish farmers. The federated companies are located from Troms in North of Norway to Hordaland on the south west coast of Norway. The administration and sales department is located in Florø in Sogn og Fjordane. The managing director is Kjartan Strand. The Salmon Farming Industry in Norway Page 44/45

46 Christiansen Partner AS (NOK 1000) Net Sales Operating Profit 291 Profit before tax -220 Equity Ratio 20 % Net sales in NOK The Salmon Farming Industry in Norway Page 45/45

47 Appendix 1 - Profit and losses "Regional companies in Norway 2006" Net sales Operating Profit Operating Margin Net Financial costs Financial costs / Net Sales Profit before tax Profit margin Profit after tax ALSAKER FJORDBRUK AS % 39 % ,8 % 1,1 % % 38 % ARCTIC SEAFOOD HOLDING AS % 14 % ,2 % 5,9 % % 9 % AS BOLAKS % 29 % ,8 % 9,0 % % 20 % BREMNES FRYSERI AS % 17 % ,0 % -4,6 % % 21 % FIRDA MANAGEMENT AS % 25 % ,0 % 2,5 % % 22 % FJORDLAKS AQUA AS % 19 % ,2 % 1,8 % % 17 % LERØY FOSSEN AS % 9 % ,3 % 1,1 % % 8 % GRIEG SEAFOOD ROGALAND AS % 9 % ,5 % 2,6 % % 7 % LERØY HYDROTECH AS % 26 % ,0 % 1,7 % % 25 % HØLLALAKS AS (Ellingsen Seafood) % 27 % ,4 % 1,1 % % 26 % JØKELFJORD LAKS AS % 24 % ,8 % 1,3 % % 23 % LERØY AURORA AS % 19 % ,0 % 4,5 % % 15 % LERØY MIDNOR AS % 27 % ,7 % 1,9 % % 25 % MIDT NORSK HAVBRUK AS % 33 % ,4 % 0,6 % % 32 % NORDLAKS HOLDING AS % 23 % ,6 % 1,1 % % 22 % VILLA GRUPPEN AS % 32 % ,2 % 3,0 % % 29 % SALMAR AS % 29 % ,3 % -7,9 % % 37 % NOVA SEA AS % 30 % ,1 % 1,7 % % 28 % SENJA SJØFARM AS % 25 % ,6 % 5,6 % % 19 % SINKABERG-HANSEN AS % 13 % ,4 % 0,4 % % 13 % SJØTROLL HAVBRUK AS % 26 % ,9 % 3,3 % % 22 % VESTSTAR HOLDING AS (Lerøy Autevoll A % 8 % ,1 % 4,1 % % 4 % POLARLAKS AS % 13 % ,4 % 5,0 % % 8 % GRIEG SEAFOOD FINNMARK AS % 19 % ,5 % -2,7 % % 22 % Total ,8 % 23 % ,3 % 0,7 % % 22,6 %

48 Appendix 2 - Equity and debt "Regional companies in Norway 2006 " Total assets Short term debt Short term debt% Long term debt Long term debt % Equity % Equity (incl. minority interest) ALSAKER FJORDBRUK AS % 22 % % 32 % % 45 % ARCTIC SEAFOOD HOLDING AS % 27 % % 62 % % 11 % AS BOLAKS % 32 % % 45 % % 23 % BREMNES FRYSERI AS % 22 % % 53 % % 25 % FIRDA MANAGEMENT AS % 22 % % 40 % % 38 % FJORDLAKS AQUA AS % 34 % % 33 % % 33 % LERØY FOSSEN AS % 15 % % 47 % % 38 % GRIEG SEAFOOD ROGALAND AS % 29 % % 41 % % 30 % LERØY HYDROTECH AS % 18 % % 41 % % 42 % HØLLALAKS AS (Ellingsen Seafood) % 46 % % 25 % % 29 % JØKELFJORD LAKS AS % 26 % % 31 % % 43 % LERØY AURORA AS % 5 % % 77 % % 17 % LERØY MIDNOR AS % 17 % % 50 % % 33 % MIDT NORSK HAVBRUK AS % 10 % % 53 % % 37 % NORDLAKS HOLDING AS % 23 % % 48 % % 29 % VILLA GRUPPEN AS % 39 % % 40 % % 20 % SALMAR AS % 25 % % 41 % % 34 % NOVA SEA AS % 22 % % 45 % % 33 % SENJA SJØFARM AS % 50 % % 39 % % 11 % SINKABERG-HANSEN AS % 22 % % 33 % % 45 % SJØTROLL HAVBRUK AS % 19 % % 42 % % 39 % VESTSTAR HOLDING AS (Lerøy Aute % 23 % % 45 % % 32 % POLARLAKS AS % 60 % % 43 % % -2 % GRIEG SEAFOOD FINNMARK AS % 7 % % 58 % % 35 % Total ,2 % 23,1 % ,6 % 44,4 % ,6 % 32,5 %

49 Appendix 3 - Profit and losses resume "Small and midsized Norwegian companies" 2006 Net sales Operating profit Operating margin Net financial costs Financial costs / net sales Profit before tax Profit margin Profit after tax Arnøy Laks AS % 23 % ,5 % 1,0 % % 22 % Eide Fjordbruk AS % 5 % ,7 % 0,8 % % 4 % Emilsen Fisk AS % 35 % ,5 % 6,4 % % 29 % Eidesvik Laks AS % 11 % ,7 % 6,4 % % 5 % Knutshaugfisk AS % -1 % ,0 % 0,1 % % -1 % Pundslett Laks AS % 47 % ,1 % -4,4 % % 51 % Espevær Fiskeoppdrett AS % 11 % ,2 % 8,0 % % 3 % Feøy Fiskeoppdrett AS % 27 % ,7 % 4,9 % % 22 % Selsøyvik Havbruk AS % 36 % ,0 % 2,2 % % 34 % Bru Eigedom AS (Steinvik Fiskefarm) % 76 % ,3 % 7,1 % % 69 % Wenberg Fiskeoppdrett AS % 26 % ,1 % -1,2 % % 27 % Wilsgård Fiskeoppdrett AS % 35 % ,1 % 3,7 % % 31 % Stettefisk AS % 10 % ,1 % 0,8 % % 9 % Lovundlaks AS % 41 % ,2 % 4,7 % % 37 % Kobbevik & Furuholmen Fiskeoppdrett AS % 65 % ,3 % 6,4 % % 58 % Landøy Fiskeoppdrett AS % 14 % ,2 % 2,2 % % 12 % E. Karstensen Fiskeoppdrett AS % 17 % ,6 % -1,1 % % 19 % Marø Havbruk AS % 10 % ,4 % -0,4 % % 10 % Fylkesnes Fisk AS % 13 % ,3 % -4,4 % % 18 % Egil Kristoffersen & Sønner AS % 25 % ,9 % 4,1 % % 21 % Brilliant Fiskeoppdrett AS % 12 % ,8 % 6,3 % % 6 % Sulefisk AS % 44 % ,6 % 3,9 % % 40 % Langøylaks AS % 16 % ,2 % 1,9 % % 14 % K. Strømmen Fiskeoppdrett AS % 33 % ,4 % 0,4 % % 33 % Total % 26 % ,1 % 2,4 % % 24 % Tax

50 Appendix 4 - Assets "Small and Midsized companies 2006" Total Assets Stock In % of total assets Tangible assets In % of total assets Goodwill and concessions In % of total assets Arnøy Laks AS % 59 % % 22 % ,3 % 0,0 % Eide Fjordbruk AS % 64 % % 5 % ,1 % 13,1 % Emilsen Fisk AS % 53 % % 13 % ,9 % 16,5 % Eidesvik Laks AS % 41 % % 2 % ,0 % 15,2 % Knutshaugfisk AS % 39 % % 22 % 0 0 0,0 % 0,0 % Pundslett Laks AS % 53 % % 10 % 0 0 0,0 % 0,0 % Espevær Fiskeoppdrett AS % 48 % % 20 % ,5 % 15,0 % Feøy Fiskeoppdrett AS % 64 % % 13 % 0 0 0,0 % 0,0 % Selsøyvik Havbruk AS % 69 % % 9 % ,7 % 4,7 % Bru Eigedom AS (Steinvik Fiskefarm) % 42 % % 19 % ,7 % 13,9 % Wenberg Fiskeoppdrett AS % 29 % % 5 % ,5 % 24,1 % Wilsgård Fiskeoppdrett AS % 47 % % 13 % 0 0 0,0 % 0,0 % Stettefisk AS % 35 % % 5 % 0 0 0,0 % 0,0 % Lovundlaks AS % 54 % % 19 % ,7 % 10,4 % Kobbevik & Furuholmen Fiskeoppdrett A % 36 % % 19 % ,6 % 35,3 % Landøy Fiskeoppdrett AS % 38 % % 11 % ,7 % 22,4 % E. Karstensen Fiskeoppdrett AS % 29 % % 14 % 0 0 0,0 % 0,0 % Marø Havbruk AS % 39 % % 0 % 0 0 0,0 % 0,0 % Fylkesnes Fisk AS % 23 % % 16 % 0 0 0,0 % 0,0 % Egil Kristoffersen & Sønner AS % 36 % % 19 % ,9 % 15,8 % Brilliant Fiskeoppdrett AS % 38 % % 15 % ,3 % 9,1 % Sulefisk AS % 27 % % 23 % ,2 % 8,7 % Langøylaks AS % 60 % % 39 % 0 0 0,0 % 0,0 % K. Strømmen Fiskeoppdrett AS % 33 % % 24 % ,9 % 7,9 % Total % 43 % % 16 % ,5 % 12,5 %

51 Appendix 5 - Equity and debt "Small and Midsized companies 2006 Equity and debt Short term debt Short term debt% Long term debt Long term debt% Equity Equity % Interest bearing debt I % of total assets Arnøy Laks AS % 35 % % 18 % % 47 % % 22 % Eide Fjordbruk AS % 48 % % 17 % % 35 % % 13 % Emilsen Fisk AS % 27 % % 39 % % 34 % % 46 % Eidesvik Laks AS % 58 % % 40 % % 2 % % 61 % Knutshaugfisk AS % 50 % % 10 % % 40 % % 0 % Pundslett Laks AS % 39 % % 20 % % 41 % % 28 % Espevær Fiskeoppdrett AS % 30 % % 36 % % 34 % % 44 % Feøy Fiskeoppdrett AS % 35 % % 22 % % 43 % % 44 % Selsøyvik Havbruk AS % 45 % % 15 % % 39 % % 10 % Bru Eigedom AS (Steinvik Fiskefarm) % 12 % % 57 % % 32 % % 45 % Wenberg Fiskeoppdrett AS % 14 % % 24 % % 62 % % 21 % Wilsgård Fiskeoppdrett AS % 46 % % 16 % % 39 % % 41 % Stettefisk AS % 70 % % 9 % % 21 % % 0 % Lovundlaks AS % 18 % % 55 % % 26 % % 29 % Kobbevik & Furuholmen Fiskeoppdrett % 31 % % 51 % % 19 % % 16 % Landøy Fiskeoppdrett AS % 8 % % 53 % % 40 % % 13 % E. Karstensen Fiskeoppdrett AS % 18 % % 48 % % 34 % % 2 % Marø Havbruk AS % 21 % % 10 % % 68 % % 0 % Fylkesnes Fisk AS % 9 % % 64 % % 27 % % 17 % Egil Kristoffersen & Sønner AS % 46 % % 24 % % 31 % % 28 % Brilliant Fiskeoppdrett AS % 43 % % 33 % % 24 % % 57 % Sulefisk AS % 10 % % 46 % % 44 % % 38 % Langøylaks AS % 30 % % 27 % % 43 % % 42 % K. Strømmen Fiskeoppdrett AS % 4 % % 26 % % 71 % % 18 % Total % 30 % % 36 % % 34 % % 30 %

52 Appendix 6 - Regional companies in Norway Gruppering No of Operating profit Operating profit per No of Operating profit Operating profit per No of 2003 Operating profit ALSAKER FJORDBRUK AS ARCTIC SEAFOOD HOLDING AS NA NA NA NA LERØY AURORA AS NA NA NA NA NA NA BOLAKS AS BREMNES FRYSERI AS FIRDA MANAGEMENT AS FJORD LAKS AQUA AS GRIEG SEAFOOD Rogalnd AS NA NA LERØY HYDROTECH AS HØLLALAKS AS LERØY MIDNOR AS NA NA MIDT NORSK HAVBRUK AS NORDLAKS HOLDING AS SALMAR AS NOVA SEA (SEA FARM INVEST) SENJA SJØFARM AS SINKABERG HANSEN AS SJØTROLL HAVBRUK AS LERØY AUSTEVOLL (VESTSTAR NA NA NA NA NA NA NA NA NA GRIEG SEAFOOD FINNMARK AS LERØY FOSSEN AS NA NA NA JØKELFJORD LAKS AS NA NA NA POLARLAKS AS NA NA NA Total Operating profit per No of 2004 Operating profit Operating profit per No of 2005 Operating profit Operating profit per No of 2006 Operating profit Operating profit per

53 Appendix 7 - Regional companies in Norway: No of Profit before tax Profit per No of Profit before tax Profit per No of Profit before tax Profit per No of Profit before tax Profit per No of Profit before tax Profit per No of Profit before tax Profit per ALSAKER FJORDBRUK AS ARCTIC SEAFOOD HOLDING NA NA NA LERØY AURORA AS NA NA NA 28 NA NA BOLAKS AS BREMNES FRYSERI AS FIRDA MANAGEMENT AS FJORD LAKS AQUA AS GRIEG SEAFOOD ROGALAND AS NA NA LERØY HYDROTECH AS ELLINGSEN SEAFOOD (HØLLALA LERØY MIDNOR AS MIDT NORSK HAVBRUK AS NORDLAKS HOLDING AS SALMAR AS NOVA SEASEA (FARM INVEST) SENJA SJØFARM AS SINKABERG HANSEN AS SJØTROLL HAVBRUK AS LERØY AUSTEVOLL (VESTSTAR NA NA NA NA NA NA NA NA NA GRIEG SEAFOOD FINNMARK (VO LERØY FOSSEN AS NA NA NA JØKELFJORD LAKS AS NA NA NA POLARLAKS AS NA NA NA Total

54 Appendix 8 - Regional companies in Norway : Operating Margin ALSAKER FJORDBRUK AS 10 % 17 % 18 % 29,8 % 42,6 % 21,0 % 2,8 % 0,5 % 20,7 % 39,4 % 41,6 % LERØY MIDNOR AS 4 % 10 % 20 % 23,0 % 32,6 % NA NA -8,0 % 8,1 % 27,2 % 41,3 % SALMAR AS 4 % 11 % 13 % 16,7 % 29,8 % 12,6 % 9,1 % 13,0 % 15,5 % 24,0 % 40,9 % BOLAKS AS NA 7 % 15 % 11,8 % 17,3 % -10,4 % -26,8 % -2,4 % 5,1 % 29,4 % 38,7 % MIDT NORSK HAVBRUK AS NA 17 % 28 % 22,2 % 39,9 % 18,4 % 0,1 % 1,9 % 17,2 % 32,6 % 37,4 % NOVA SEA (SEA FARM INVEST) 8 % 15 % 19 % 23,3 % 38,0 % 11,1 % -3,1 % 2,1 % 15,9 % 30,4 % 34,1 % LERØY AURORA AS NA NA NA NA NA NA NA -14,0 % -2,2 % 19,2 % 33,4 % HØLLALAKS AS 4 % 7 % -6 % 14,6 % 25,2 % -5,9 % 6,4 % -2,3 % 6,3 % 27,3 % 32,5 % HYDROTECH-GRUPPEN AS 0 % 1 % 6 % 18,4 % 26,5 % 7,3 % 9,2 % -8,7 % 5,9 % 26,4 % 32,4 % GRIEG SEAFOOD FINNMARK AS NA NA NA 17,5 % 15,0 % -27,7 % -33,7 % 14,9 % 12,0 % 19,4 % 31,6 % JØKELFJORD LAKS AS NA NA 18,0 % 29,6 % 30,8 % 17,7 % 10,4 % 2,3 % 18,7 % 28,0 % 29,9 % SJØTROLL HAVBRUK AS 2 % 11 % 11 % 22,3 % 28,6 % 2,6 % -4,2 % -41,4 % 9,1 % 25,5 % 29,9 % SENJA SJØFARM AS -11 % -16 % 4 % 16,3 % 27,8 % -19,6 % -12,4 % -12,7 % -8,2 % 23,5 % 29,1 % FJORD LAKS AQUA AS NA NA NA 35,0 % 33,7 % 3,2 % -5,1 % -15,3 % 5,7 % 19,1 % 27,6 % FIRDA MANAGEMENT AS 19,2 % 19 % 18 % 21,0 % 39,1 % 1,1 % -2,5 % -6,9 % 13,5 % 24,6 % 27,1 % BREMNES FRYSERI AS 10 % 10 % 12 % 14,8 % 26,3 % 12,0 % -0,5 % -11,5 % 0,4 % 16,8 % 26,7 % LERØY AUSTEVOLL (VESTSTAR) NA NA NA NA NA NA NA NA -7,3 % 9,4 % 25,7 % NORDLAKS HOLDING AS NA 13 % 24 % 11,1 % 28,5 % 7,7 % 1,2 % 7,4 % 10,4 % 22,6 % 25,1 % ARCTIC SEAFOOD HOLDING AS NA NA NA NA NA NA -12,4 % -31,3 % -4,5 % 14,5 % 24,7 % GRIEG SEAFOOD ROGALAND AS -17 % -11 % 0 % 6,8 % 29,4 % -10,3 % -4,8 % -18,3 % -19,4 % NA 23,7 % SINKABERG HANSEN AS 16 % 18 % 16 % 18,9 % 19,9 % 12,5 % 7,7 % 5,5 % 11,3 % 12,9 % 21,8 % LERØY FOSSEN AS NA NA NA NA NA NA -5,2 % 5,6 % 7,9 % 9,5 % 20,0 % POLARLAKS AS NA NA NA NA NA -20,5 % -31,5-19,3 % -16,3 % 12,7 % -17,3 % Average 4,1 % 8,5 % 13,5 % 19,6 % 29,5 % 3,1 % -1,4 % -8,0 % 7,1 % 23,3 % 31,8 % Profit margin ALSAKER FJORDBRUK AS 6 % 13 % 14 % 25,5 % 41,5 % 18,0 % -4,4 % -1,5 % 18,3 % 38,2 % 54,4 % SALMAR AS 3 % 7 % 15 % 14,6 % 29,8 % 7,5 % -6,1 % 5,6 % 13,9 % 28,7 % 46,2 % LERØY MIDNOR AS -3 % 9 % 14 % 15,9 % 28,3 % NA NA -19,1 % 5,0 % 25,3 % 40,5 % MIDT NORSK HAVBRUK AS NA 14 % 16 % 21,1 % 37,2 % 16,4 % -2,2 % -11,0 % 15,0 % 32,0 % 36,0 % BOLAKS AS NA 3 % 15 % 15,4 % 19,2 % -11,0 % -22,9 % -12,8 % -1,0 % 20,3 % 35,9 % NOVA SEA (SEA FARM INVEST) 1 % 12 % 2 % 21,6 % 40,9 % 3,0 % -14,5 % -8,4 % 11,0 % 28,1 % 34,2 % SJØTROLL HAVBRUK AS 3 % 7 % 5 % 16,9 % 32,2 % 7,0 % -8,4 % -52,2 % -2,9 % 22,2 % 33,8 % LERØY AURORA AS NA NA NA NA NA NA NA -18,0 % -6,1 % 14,7 % 31,4 % HØLLALAKS AS -4 % 2 % -14 % 8,1 % 23,8 % -4,3 % 1,9 % -6,5 % 5,7 % 26,2 % 31,1 % GRIEG SEAFOOD FINNMARK (VO NA NA NA 10,4 % 14,9 % -16,1 % -13,7 % 1,4 % 8,6 % 22,1 % 31,1 % BREMNES FRYSERI AS 7 % 5 % 9 % 11,0 % 24,5 % 5,3 % -8,5 % -38,1 % -5,4 % 21,4 % 30,7 % LERØY HYDROTECH -9 % -9 % -3 % 11,8 % 21,3 % 0,2 % 1,1 % -13,3 % 2,8 % 24,7 % 30,4 % JØKELFJORD LAKS AS NA NA 14,3 % 23,1 % 27,9 % 17,3 % 8,8 % -6,3 % 16,8 % 25,0 % 29,1 % FIRDA MANAGEMENT AS NA 8 % 11 % 16,6 % 37,3 % 3,0 % -0,9 % -10,6 % 10,9 % 22,1 % 25,1 % NORDLAKS HOLDING AS NA 21 % 9 % 7,9 % 25,0 % 3,1 % 3,1 % 10,8 % 13,0 % 21,5 % 23,5 % FJORD LAKS AQUA AS NA NA NA 34,1 % 32,3 % 3,6 % 1,5 % -18,7 % 4,3 % 17,3 % 23,5 % SENJA SJØFARM AS -13 % -23 % -10 % 15,4 % 21,6 % -28,2 % -22,6 % -31,6 % -16,3 % 18,3 % 22,5 % SINKABERG HANSEN AS 14 % 15 % 14 % 16,7 % 19,3 % 12,3 % 3,7 % 4,4 % 10,4 % 12,5 % 22,3 % LERØY AUSTEVOLL (VESTSTAR) NA NA NA NA NA NA NA NA -11,9 % 4,9 % 21,6 % GRIEG SEAFOOD ROGALAND AS -21 % -9 % -2 % -1,1 % 25,7 % -19,6 % -19,1 % -27,0 % -26,6 % NA 21,2 % ARCTIC SEAFOOD HOLDING AS NA NA NA NA NA NA -23,4 % -40,4 % -12,5 % 8,5 % 20,5 % LERØY FOSSEN AS NA NA NA NA NA NA -6,0 % 0,6 % 5,5 % 8,4 % 17,7 % POLARLAKS AS NA NA NA NA NA -66,1 % -46,4 % -31,6 % -20,8 % 7,6 % -21,6 % Average -1,5 % 5,0 % 6,8 % 15,8 % 27,9 % -2,7 % -9,6 % -15,4 % 3,5 % 22,2 % 32,1 %

55 Appendix 9 - Regional companies in Norway : Book value Goodwill and concessions Book value intangible assets No of Per Book value intangible assets No of Per Book value intangible assets No of Per Book value intangible assets No of Per Book value intangible assets No of Per Book value intangible assets No of Per ALSAKER FJORDBRUK AS ARCTIC SEAFOOD HOLDING AS NA NA NA LERØY AURORA AS NA NA NA NA NA NA BOLAKS AS NA BREMNES FRYSERI AS FIRDA MANAGEMENT AS FJORD LAKS AQUA AS GRIEG SEAFOOD ROGALAND A NA 15 NA LERØY HYDROTECH HØLLALAKS AS LERØY MIDNOR AS NA NA NA MIDT NORSK HAVBRUK AS NORDLAKS HOLDING AS SALMAR AS NOVA SEA (SEA FARM INVEST) SENJA SJØFARM AS SINKABERG HANSEN AS SJØTROLL HAVBRUK AS LERØY AUSTEVOLL (VESTSTAR NA NA NA NA NA NA NA NA NA GRIEG SEAFOOD FINNMARK (V LERØY FOSSEN NA NA NA NA NA NA JØKELFJORD LAKS AS NA NA NA NA NA NA POLARLAKS AS NA NA NA NA NA NA Total

56 Appendix 10 - Regional companies in Norway : Operating profit per kg harvest SALMAR AS 5,02 7,80 12,39 4,73 3,36 4,46 5,40 9,52 17,15 ALSAKER FJORDBRUK AS 4,98 8,53 13,78 5,22 0,59 0,09 4,82 11,54 14,19 SINKABERG HANSEN AS 5,16 6,75 10,08 4,41 2,65 2,00 4,64 3,44 11,92 JØKELFJORD LAKS AS NA NA NA NA NA NA 4,29 6,82 9,43 MIDT NORSK HAVBRUK AS NA 5,44 11,40 5,54 0,03 0,32 3,49 8,14 11,61 NOVA SEA (SEA FARM INVEST) 5,22 6,13 9,88 2,55-0,65 0,47 2,58 7,61 12,10 FIRDA MANAGEMENT AS 5,00 NA 20,07 0,25-0,45-1,21 3,53 5,53 NA NORDLAKS HOLDING AS NA 2,18 9,74 1,71 0,30 2,13 3,23 7,64 6,78 GRIEG SEAFOOD FINNMARK (VOLDEN) NA NA NA NA -6,43 3,00 2,44 5,26 9,49 LERØY FOSSEN AS NA NA NA NA NA NA 2,39 2,98 8,13 SJØTROLL HAVBRUK AS 3,27 7,73 11,69 0,80-1,76-12,82 2,29 7,33 9,65 FJORD LAKS AQUA AS NA NA 8,92 0,72-1,22-2,54 1,79 4,44 7,40 LERØY HYDROTECH 1,90 6,44 8,56 1,85 0,53-2,47 1,70 7,06 9,80 LERØY MIDNOR AS 5,07 6,32 8,55 0,88 NA -0,88 1,36 7,15 13,34 HØLLALAKS AS -1,37 3,62 7,08-1,26 1,23-0,38 1,30 6,50 9,31 BOLAKS AS NA 3,77 6,64-2,69-7,00-0,57 0,84 6,77 14,37 BREMNES FRYSERI AS 4,26 5,07 10,35 3,13-0,12-2,36 0,09 3,97 7,30 LERØY AURORA AS NA NA NA NA NA -0,78-0,47 4,79 9,95 ARCTIC SEAFOOD HOLDING AS NA NA NA NA NA -10,30-1,17 2,91 8,21 SENJA SJØFARM AS 0,96 5,33 8,13-3,80-2,38-2,54-1,70 2,93 11,73 GRIEG SEAFOOD ROGALAND AS -0,02 NA 12,52-3,28-3,57-7,27-3,38 NA 7,09 POLARLAKS AS NA NA NA NA NA NA -3,57 2,21-4,74 LERØY AUSTEVOLL (VESTSTAR) NA NA NA NA -5,39-3,60-5,55 2,40 7,01 Weighted average per year 3,16 4,41 9,84 1,18-1,54-2,42 1,49 6,00 10,46

57 Appendix 11 - Norwegian Exporters Operating margin Operating margin COMPANY Hallvard Lerøy AS 3,1 % 2,9 % 2,1 % 2,7 % 2,3 % 2,1 % 2,1 % Coast Seafood AS 3,1 % 2,9 % 3,5 % 1,9 % 1,5 % 0,7 % 2,1 % Norway Royal Salmon AS 0,2 % -0,1 % -0,5 % 0,1 % 0,2 % 1,5 % 1,5 % Aalesundsfisk AS 0,8 % 1,0 % 1,0 % 1,8 % -0,3 % -2,6 % -0,6 % Seaborn AS NA -33,2 % 0,9 % 0,0 % 1,0 % 1,5 % 1,4 % Gaia Seafood AS NA NA -0,8 % 0,7 % 0,6 % 0,9 % 0,8 % Orion Seafood AS NA NA NA 4,8 % 4,5 % 3,1 % 3,5 % Nisja Trading AS 5,6 % -1,6 % 1,2 % 0,1 % 0,8 % 0,1 % 0,2 % Sirena Norway AS NA NA 4,1 % 3,5 % -1,7 % 1,2 % 1,1 % Sea Star International AS NA 1,7 % -1,0 % 2,2 % 1,8 % 1,0 % 0,1 % Norwell AS NA 2,8 % 1,9 % 0,3 % -0,4 % 1,2 % 2,9 % Christiansen Partner AS NA 4,5 % 3,2 % 3,6 % 1,1 % 0,3 % 0,1 % Average 1,8 % 2,1 % 1,6 % 1,7 % 1,3 % 1,2 % 1,7 % Profit margin (before tax) Profit margin ( before tax) COMPANY Hallvard Lerøy AS 1,5 % 2,6 % 1,8 % 2,5 % 2,2 % 2,1 % 2,0 % Coast Seafood AS 3,3 % 2,2 % 1,6 % 1,0 % 1,5 % 0,7 % 2,2 % Norway Royal Salmon AS 0,5 % 7,2 % 4,6 % -0,9 % -3,8 % 2,2 % 2,5 % Aalesundsfisk AS 0,1 % -2,0 % -2,0 % 0,3 % -0,7 % -5,5 % -1,6 % Seaborn AS NA NA -8,0 % -0,4 % 0,9 % 1,4 % 1,3 % Gaia Seafood AS NA NA -0,8 % 0,4 % 0,3 % 0,5 % 0,4 % Orion Seafood AS NA NA NA 4,9 % 4,1 % 3,2 % 3,2 % Nisja Trading AS 5,7 % -1,6 % 0,6 % -0,2 % 0,7 % 0,0 % 0,3 % Sirena Norway AS NA NA 4,1 % 3,0 % -1,9 % 1,1 % 0,9 % Sea Star International AS NA 1,4 % -2,4 % 2,1 % 1,6 % 0,9 % -0,6 % Norwell AS NA 1,7 % -0,1 % 0,1 % -1,2 % 0,4 % 1,7 % Christiansen Partner AS NA 4,3 % 3,4 % 3,6 % 1,0 % 0,2 % -0,1 % Average 2,0 % 1,7 % 0,8 % 1,3 % 0,8 % 1,0 % 1,5 %