Solid performance in a strong market Strong price achievement and solid results in Norway Return on Capital Employed of 18.9% in the quarter Favourable market balance expected to support a strong market over the next year An extraordinary dividend of NOK 0.05 per share will be proposed for an EGM in December 3 601 Operating revenue 3 805 3 431 3 562 3 610 594 Operational EBIT 520 608 792 759 Harvest volume (HOG) tonnes 79 554 87 409 73 061 68 105 64 032 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Highlights Marine Harvest Group - main figures Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 Revenue and other income 3 610 3 601 10 604 10 847 14 651 EBIT 1 045 282 2 856 659 1 348 Net financial items - 104 295-106 262 313 Profit or loss for the period 670 626 2 038 782 1 302 Operational EBIT 1) 759 594 2 159 999 1 520 Operational EBIT margin 21.0% 16.5% 20.4% 9.2% 10.4% Earnings per share (NOK) 0.19 0.18 0.57 0.22 0.37 Cash flow from operations 599 780 2 295 2 287 2 370 Total assets 22 031 19 673 22 031 19 673 20 389 Net interest-bearing debt (NIBD) 5 152 5 093 5 152 5 093 5 075 ROACE 2) 18.9 % 14.9 % 18.3 % 4.0 % 6.2 % Equity ratio 52.8 % 55.2 % 52.8 % 55.2 % 56.2 % NIBD/Equity 44.3 % 46.9 % 44.3 % 46.9 % 44.3 % Harvest volume (HOG tonnes, salmonids) 64 032 79 554 205 198 239 691 327 100 2009 1) Aligned for fair value adjustment of biomass, onerous contracts provisions, results from associated companies, restructuring costs and write-downs of fixed assets/intangibles 2) ROACE: Annualised return on average capital employed based on EBIT aligned for fair value adjustment of biomass and onerous contracts provisions /average (NIBD + Equity) Summary of the third quarter 2010 Continued solid demand and tight market supporting strong prices. Operating revenue amounted to NOK 3 610 million, in line with 2009, despite a reduction of 19.5% in harvested volume. Operational EBIT was NOK 759 million, representing an operational EBIT margin of 21.0%, compared to 16.5% last year. Positive result in Marine Harvest VAP Europe despite increased raw material prices. Net financial items in the quarter amounted to a cost of NOK 104 million versus an income of NOK 295 million in 2009. The deviation was mainly due to a change in fair value of the conversion option of the convertible bonds of NOK -126 million and reduction of currency effects of NOK -240 million. Cash flow from operations amounted to NOK 599 million, affected by a seasonal increase in biomass in sea in the quarter. Net interest-bearing debt increased by NOK 474 million in the quarter to NOK 5 152 million. The cash flow effect from dividend was NOK 752 million in the quarter. Annualised return on average capital employed (ROACE) was 18.9% in the third quarter 2010 compared to 14.9% in 2009. Summary year to date 2010 Operating revenue year to date was NOK 10 604 million, a result of strong prices in all markets. Harvest volume decreased by 14.4% compared to 2009, mainly due to the lower volumes from Chile. Operational EBIT amounted to NOK 2 159 million, NOK 1 160 million higher than in 2009. Net interest-bearing debt remained stable compared third quarter 2009, despite the year to date dividend of NOK 1 968 million. A full 5 year refinancing was completed during the first half of 2010, including an EUR 600 million bank facility and an EUR 225 million convertible bond. Marine Harvest Group Page 2
Market overview Global harvest volumes of Atlantic salmon were approximately 315 000 tonnes gutted weight in the quarter. This was in line with the harvest volume in the third quarter of 2009. Supply Q3 2010 Change vs 12 month (tonnes, HOG) Q3 2009 change Norway 207 800 8.4% 15.2% North America 33 300 13.3% -1.7% Scotland 30 000-12.3% 3.8% Chile 24 000-37.8% -57.2% Other 19 500-3.9% 1.3% Total 314 600 0.1% -3.6% The harvest volumes in Norway and North America increased by 8.4% and 13.3% respectively. The other regions experienced a drop in harvest volumes. As in previous quarters Chile contributed with a large reduction in overall volumes. The drop came as a result of the depletion of the Chilean industry s biomass due to the ISA disease. Harvest volumes in Chile are expected to bottom out during 2010. The reductions in Scotland and the Other regions were caused by temporary differences in biomass growth, smolt release patterns and harvest profiles. Reference prices Q3 2010 Change vs Q3 2010 Change vs NOK Q3 2009 market 4) Q3 2009 Norway 1) NOK 37.94 20.9% EUR 4.77 32.9% Chile 2) NOK 30.64 19.8% USD 4.97 18.8% North America 3) NOK 18.21-6.2% USD 2.95-7.0% 1) Average superior HOG price per kilo (FHL/NSL Oslo) 2) Average C trim price per pound (Urner Barry Miami 2-3 pound) 3) Average superior HOG price per pound (Urner Barry Seattle 10-12 pound) 4) Market price in local currency Due to continued strong demand and the tight global supply situation, prices in the market currencies (EUR and USD) increased strongly for Norwegian and Chilean salmon relative to the third quarter of 2009. Prices for Canadian fish dropped in both the market currency and NOK relative to the same quarter last year. Quarterly harvest volumes thousand tonnes HOG The background for this drop was the strong increase in harvest volumes in North America combined with a somewhat larger wild catch volume available for the fresh market. Volumes distributed to the markets equalled the harvest in the quarter and totalled approximately 315 000 tonnes. In the third quarter of 2009, volumes distributed to the markets exceeded harvest volumes due to a significant inventory sell-off in Chile. Hence supply to the market dropped by 5.5% in the third quarter of 2010 when comparing to the same quarter of 2009. Market Q3 2010 Change vs 12 month distribution (tonnes, HOG) Q3 2009 change EU 162 400-6.5% -0.9% US 55 000-9.8% -11.4% Russia 21 500 18.8% 19,4% China/Hong Kong 9 900 10.0% -4.1% Japan 6 700-4.3% -24.2% Brasil 6 400-32.6% -20.9% Other 53 200-1.3% -2.3% Total 315 100-5.5% -3,6% As a result of the significantly reduced export from Chile, other producing regions have focused on arbitrage sale into Chile s traditional markets. This has redirected volume away from the EU, which experienced a drop in volumes of 6.5%. The value of the raw material consumed in the EU, however, increased by approximately 25% in the same period. Chile s traditional core market, the US, experienced a drop of 9.8%. The markets in Russia and China/Hong Kong proved favourable in the third quarter and increased consumed volume by 18.8% and 10.0% respectively. Consumption in the remaining markets was generally adversely affected by the shortfall of volumes from Chile and experienced a reduction in volumes compared to the third quarter of 2009. Source: Kontali Yearly harvest volumes thousand tonnes HOG 315 369 302 295 315 1 259 1 343 1 320 1 279 1 145 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 2006 2007 2008 2009 2010E Marine Harvest Group Page 3
Financial results in the period Marine Harvest Group Q3. 10 MH Norway MH Canada MH Scotland MH Chile 3) Revenue and other income 1 902 255 339 638 1 042 434 3 610 Operational EBIT 2) 590 17 98 17 23 12 759 Operational EBIT margin 31.0 % 6.8 % 28.9 % 2.7 % 2.2 % 2.9 % 21.0 % Operational EBIT per kilo 4) 13.36 2.71 10.91 n/a MH VAP Europe MH Other Businesses 1) Total adjusted for eliminations 2) Aligned for fair value adjustment of biomass, onerous contracts provisions, results from associated companies, restructuring costs and write-downs of fixed assets/intangibles 3) MH Chile is not applicable due to high impact of traded volume. 4) MH Chile includes the sales operation in the US Total 1) Operational results (Figures in parenthesis refer to the same quarter in 2009.) Operating revenues in the third quarter were NOK 3 610 million (NOK 3 601 million), and operational EBIT amounted to NOK 759 million (NOK 594 million). Achieved prices were higher in all markets, except Canada, in the third quarter this year compared to 2009, while harvested volume decreased by 19.5%. All business units, except Marine Harvest Canada, achieved satisfactory results in the third quarter. Marine Harvest Canada suffered from reduced prices due to strong increase in harvest volumes in North America combined with a somewhat larger wild catch volume available for the fresh market. 1 000 900 800 700 600 500 400 300 200 100 0 EBIT Q3.09 Operational EBIT Marine Harvest Group Variance Q3 2009 vs. Q3 2010 () Price Volume Feed Other Chile 2009 effects Translation effects EBIT Q3.10 Financial items Earnings before interest and taxes Earnings before interest and taxes (EBIT) amounted to NOK 1 045 million (NOK 282 million) after fair value adjustment on biomass of NOK 250 million (NOK -320 million) and income from associated companies of NOK 43 million (NOK 6 million). The fair value adjustment on biomass consists mainly of a significant increase in Marine Harvest Norway. EBIT for the Marine Harvest Group in the third quarter of 2010 includes exceptional items amounting to NOK -23 million (NOK 70 million). All exceptional items are listed in note 5 and commented on under each business unit chapter. Marine Harvest Group Q3. 10 Q3. 09 Net interest expenses - 96-84 Net currency effects 121 361 Other financial items - 129 18 Net financial items - 104 295 Net financial items amounted to NOK -104 million in the third quarter (NOK 295 million). Net interest expenses were NOK -96 million (NOK -84 million), while net positive currency effects amounted to NOK 121 million (NOK 361 million), due to gains from the Marine Harvest hedging program. Other financial items amounted to NOK -129 million in the quarter (NOK 18 million), as NOK -126 million was recognised as an expense related to change in fair value of the conversion option of the convertible bonds. Marine Harvest Group Page 4
Financial position Net interest-bearing debt Marine Harvest Group 30.09.2010 30.06.2010 Non-current assets 12 269 12 438 Current assets 9 762 8 752 Total assets 22 031 21 190 Equity 11 639 12 126 Non-current liabilities 7 150 6 431 Current liabilities 3 243 2 633 Total equity and liabilities 22 031 21 190 Cash and cash equivalents 276 268 Net interest-bearing debt 5 152 4 678 NIBD/Equity 44.3 % 38.6 % Equity ratio 52.8 % 57.2 % Total assets amounted to NOK 22 031 million at the end of the third quarter, an increase of NOK 841 million compared to the second quarter. The increase in total assets is mainly due to an increase in the fair value of biomass. The increase in biomass is due to an increase of standing biomass in sea with 51 000 tonnes, of which 36 000 tonnes in Norway. Total liabilities increased by NOK 1 329 million, to NOK 10 393 million, of which trade payables increased by NOK 600 million and net interest-bearing debt increased by NOK 474 million. Total equity decreased by NOK 487 million from the previous quarter to NOK 11 639 million at the end of this quarter. The decrease is the net of a quarterly profit of NOK 670 million, net reduction in fair value of cash flow hedges of NOK -46 million, negative currency translation differences of NOK -396 million and the dividend distribution of NOK -715 million. The NIBD/Equity ratio increased from 38.6% to 44.3% and the equity ratio decreased from 57.2% to 52.8% during the quarter. Net interest-bearing debt increased by NOK 474 million in the third quarter, to NOK 5 152 million. The convertible bonds have a nominal value of EUR 225 million, but are recognised at EUR 194 million at the end of the quarter. Total net nominal interest-bearing debt amounts to NOK 5 401 million at the end of third quarter. The fair value of the equity conversion option has increased by NOK 126 million during the quarter to NOK 298 million, and is recognised as a non-current interest-free liability. Currency effects decreased interest-bearing debt by NOK 6 million. Cash flow Marine Harvest Group Q3. 10 Q3. 09 Earnings before interest and taxes (EBIT) 1 045 282 Adjustment for - fair value adjustment and onerous contracts - 251 320 - income/loss from associated companies - 43-6 - depreciation and impairment losses 165 167 Change in inventory, trade receivables and trade payables - 262-24 Taxes paid /refunded - 54 105 Other adjustments - 1-65 Cash flow from operations 599 780 Cash flow from investments - 224-157 Changes in interest-bearing debt 445-622 Net interest and financial items paid - 102-87 Realised currency effects 47 31 Dividend paid, adjusted for withholding tax - 752 0 Cash flow from financing - 363-677 Currency effects on cash - opening balance - 5-10 Net change in cash and cash equivalents in the period 7-65 12.00 10.00 Currency exchange rates towards NOK GBP EUR USD CAD Cash flow from operations amounted to NOK 599 million (NOK 780 million). There has been a seasonal build up of biomass during the quarter. In third quarter of 2009, Marine Harvest Chile released working capital related to biomass and inventory and received a tax refund of NOK 137 million. 8.00 Cash outflow from investments amounted to NOK 224 million (NOK 157 million). 6.00 Net cash outflow from financing was NOK 363 million (NOK 677 million), after a dividend distribution of NOK 752 million adjusted for 4.00 withholding tax. The cash inflow from interest-bearing debt was 30.9.09 31.12.09 31.3.10 30.06.10 30.09.10 NOK 445 million. Realised currency effects of NOK 47 million were mainly driven by realised gains from Marine Harvest s currency hedging portfolio. Marine Harvest Group Page 5
Operational performance Business units Marine Harvest Norway MH Norway Q3. 10 Q3. 09 Operational EBIT MH Norway Variance Q3 2009 vs. Q3 2010 () 800 Operating revenues 1 902 1 819 Operational EBIT 590 366 700 Fair value adj. on biomass and contracts Income/loss from associated companies 271 43-267 6 Restructuring costs Write-downs of fixed assets/intangibles 0-1 0 0 600 500 EBIT 904 105 400 Exceptional items included in operational EBIT -13 0 300 Harvest volume, HOG tonnes 44 180 53 110 200 NOK per kilo: Operational EBIT 13.36 6.90 Hereof: Exceptional items -0.30 0.00 100 0 EBIT Q3.09 Price Volume Feed Other EBIT Q3.10 Marine Harvest Norway achieved a solid result with operational EBIT of NOK 590 million in the third quarter of 2010. Income from associated companies contributed with an additional NOK 43 million to the EBIT. Revenues, prices and volumes Marine Harvest Norway achieved operating revenues of NOK 1 902 million in the third quarter (NOK 1 819 million). The increase was a result of higher prices. The market prices remained strong through the quarter. Marine Harvest Norway achieved an average sales price FCA Oslo for all sizes and grades of NOK 36.03 in the third quarter (NOK 29.10), which was NOK 2.85 lower than weighted NOS superior spot price in the quarter. NOK 2.42 of this difference was due to lower prices for contract sales, and NOK 0.89 was due to quality downgrades. 52% of the volume was sold on contracts in the period, while the superior share was 89% (92%). Sales in the spot market had a positive effect on average price achieved in third quarter. The total harvest volume was 44 180 tonnes gutted weight (53 110 tonnes). The reduction compared with the same quarter in 2009 was due to slower growth as an effect of low seawater temperatures in the spring 2010. Operations Operational EBIT was NOK 590 million in the third quarter (NOK 366 million), which resulted in operational EBIT of NOK 13.36 per kilo harvested (NOK 6.90). Increased prices contributed to the improved result, while lower harvest volume had a negative effect. Lower feed cost for the fish harvested in the quarter had a positive influence on the result. Other costs were higher than the same quarter last year mainly due to additional lice mitigation cost. Additional direct costs related to sea lice mitigation were approximately NOK 0.30 per kilo in the quarter, and an amount of NOK 13 million was reported as an exceptional item, which is included in Other in the graph above. Marine Harvest Norway has previously estimated additional direct costs in the range of NOK 0.20-0.40 per kilo in 2010. These costs amount to NOK 0.28 per kilo year to date in 2010. Guiding The expected harvest volume for Marine Harvest Norway in the fourth quarter of 2010 is 58 000 tonnes gutted weight. Marine Harvest Group Page 6
Marine Harvest Canada MH Canada Q3. 10 Q3. 09 Operating revenues 255 198 Operational EBIT 17 18 Fair value adj. on biomass and contracts -85-13 Restructuring costs 0 0 Income/loss from associated companies 0 0 Write-downs of fixed assets/intangibles 0 0 EBIT -67 6 Exceptional items included in operational EBIT -10-8 160 140 120 100 80 60 40 Operational EBIT MH Canada Variance Q3 2009 vs. Q3 2010 () Harvest volume, HOG tonnes 6 432 4 949 20 NOK per kilo: Operational EBIT 2.71 3.73 Hereof: Exceptional items -1.57-1.70 0 EBIT Q3.09 Price Volume Feed Other Translation effects EBIT Q3.10 Despite higher harvest volume in the third quarter 2010 than in the same quarter the year before, Marine Harvest Canada achieved a disappointing operational EBIT NOK 1 million lower than in the same quarter of 2009. Revenues, prices and volumes Operating revenues were NOK 255 million in the quarter (NOK 198 million). The increase was a result of higher harvest volume. The average price achieved in CAD in the third quarter of 2010 was 6% lower than the price in the same quarter of 2009. The market prices were negatively influenced by a 13% increase in harvest volumes in North America combined with a somewhat larger wild catch volume available for the fresh market. Achieved prices for Marine Harvest Canada were in addition negatively impacted by lower average harvest size, and the strengthening of CAD compared to USD. The harvested volume was 6 432 tonnes gutted weight (4 949 tonnes). The superior share was 86% in the quarter (86%). Operations Operational EBIT was NOK 17 million in the third quarter of 2010 (NOK 18 million). Operational EBIT per kilo harvested was NOK 2.71 (NOK 3.73). The reduction was mainly a result of lower sales prices achieved. Feed cost was slightly lower per kilo harvested compared with the same quarter last year, and Other costs were slightly higher. The increase in Other costs is mainly a consequence of reduced growth during parts of 2009, which resulted in higher cost per kilo for the fish harvested in the third quarter of 2010. Total exceptional items included in the operational EBIT amounted to NOK 10 million in the third quarter (NOK 8 million) and relates to discards and claims from Kudoa (soft flesh). Taking into account that the third quarter traditionally is a challenging quarter for the Canadian operations because of difficult seawater conditions, the underlying operational performance is satisfactory. The seawater production in the third quarter was 15% higher than the third quarter last year. Guiding Harvest volume The expected harvest volume for Marine Harvest Canada in the fourth quarter 2010 is 10 000 tonnes gutted weight. Marine Harvest Group Page 7
Marine Harvest Scotland MH Scotland Q3. 10 Q3. 09 Operating revenues 339 349 Operational EBIT 98 90 Fair value adj. on biomass and contracts 11-9 Restructuring costs -6-1 Income/loss from associated companies 0 0 Write-downs of fixed assets/intangibles 0 0 EBIT 103 80 Exceptional items included in operational EBIT 0 0 Harvest volume, HOG tonnes 8 993 10 240 160 140 120 100 80 60 40 20 Operational EBIT MH Scotland Variance Q3 2009 vs. Q3 2010 () NOK per kilo: Operational EBIT 10.91 8.77 Hereof: Exceptional items 0.00 0.00 0 EBIT Q3.09 Price Volume Feed Other Translation effects EBIT Q3.10 Marine Harvest Scotland achieved an operational EBIT of NOK 98 million in the third quarter, which is the highest operational EBIT in a quarter since the merger. Despite a high portion of the volume committed to long term contracts, Marine Harvest Scotland managed to increase the sales prices during the third quarter of 2010. Revenues, prices and volumes Marine Harvest Scotland had operating revenues of NOK 339 million in the third quarter of 2010, NOK 10 millions lower than same quarter last year (NOK 349 million). Despite lower harvest volume, the operating revenues in local currency increased by 3 % from the third quarter last year, due to higher prices. The average price achieved in NOK increased by 11% from the third quarter of 2009. In local currency, the average price achieved increased by 16%. Marine Harvest Scotland had a contract share of 75% in the third quarter (64%). The volume harvested was 8 993 tonnes gutted weight during the third quarter 2010 (10 240 tonnes), a decrease of 12% from 2009. This was due to lower number of smolt put to sea in the autumn of 2008. The superior share was 89% in the quarter (93%). Operational EBIT per kilo gutted weight was NOK 10.91 (NOK 8.77), an increase of 24% from the third quarter 2009. In local currency, the increase was 31% from GBP 0.88 per kilo in the third quarter of 2009 to GBP 1.15 per kilo in the same period of 2010. Higher prices, both from spot and contract sales, had a positive effect on the result in the third quarter, while lower harvest volume had a negative effect on the result. Feed costs were higher than in the third quarter last year. The increase in Other was mainly related to higher cost per kilo for harvested fish. Restructuring cost of NOK 6 million in the third quarter relates to close-down of a smolt production site. Guiding The seawater production in the quarter was higher than in the third quarter of 2009, which compensated for lower production in the second quarter of 2010. The expected harvest volume for Marine Harvest Scotland in the fourth quarter 2010 is 10 000 tonnes gutted weight. Operations Operational EBIT in the third quarter was NOK 98 million (NOK 90 million). Marine Harvest Group Page 8
Marine Harvest Chile MH Chile Q3. 10 Q3. 09 Operating revenues * 638 611 Operational EBIT * 17 59 Fair value adj. on biomass and contracts 45 0 Restructuring costs 0 5 Income/loss from associated companies 0 0 Write-downs of fixed assets/intangibles 0 0 EBIT * 63 64 Exceptional items included in operational EBIT 0 78 160 140 120 100 80 60 40 Operational EBIT MH Chile Variance Q3 2009 vs. Q3 2010 () Harvest volume, HOG tonnes** 740 7 689 NOK per kilo: Operational EBIT n/a *** 28.18 Hereof: Exceptional items n/a *** 10.17 * Including contribution from operations in the US ** Sold volume own production *** Not applicable due to high impact of traded volume 20 0 EBIT Q3.09 Price Volume Feed (*) Includes reversal of write-downs in 2009 Other * Sales / processing Translation effects EBIT Q3.10 Marine Harvest Chile achieved an operational EBIT of NOK 17 million in the quarter including sale and processing in the US of fish from Marine Harvest Norway and other suppliers. Biological figures continue to show a positive trend. Revenues, prices and volumes Operating revenues were NOK 638 million in the third quarter of 2010 (NOK 611 million). The revenues were mainly related to the sale of Norwegian salmon through the Miami office and from third party sourced fish in Chile. Further processing of Norwegian salmon in the Miami and Los Angeles plants are included in the results of the business unit. In the third quarter of 2010, Marine Harvest Chile sold 740 tonnes gutted weight (7 689 tonnes) of its own Chilean produced salmon. Operations Operational EBIT amounted to NOK 17 million in the third quarter (NOK 59 million). NOK 9 million of the operational EBIT was generated in the sales and processing units in the US. Operational EBIT for the farming activity in Chile in third quarter was positively affected by compensations received related to insurance and trading of third party fish. The level of production is still low for the current size of the organisation, and the operational EBIT from farming remains negative but limited in absolute value terms. Higher prices contributed positively to the third quarter result, and as Marine Harvest Chile achieved a negative contribution per kilo last year, the volume effect becomes positive when comparing the result with the same quarter last year. The negative deviation shown in Other, when comparing operational EBIT with the same quarter last year, reflects the reversal of write-downs which was reported as exceptional income of NOK 78 million included in operational EBIT in the third quarter of 2009. The contribution from sales and processing activities in Chile and the US was lower than the same quarter last year. Guiding Sold volume The growth in seawater has been very good, and Marine Harvest Chile expect to sell 5 000 tonnes gutted weight from own production in the fourth quarter of 2010. Marine Harvest Group Page 9
Marine Harvest VAP Europe MH VAP Europe Q3. 10 Q3. 09 Operating revenues 1 042 992 Operational EBIT 23 64 Restructuring costs 0-1 Income/loss from associated companies 0 0 Write-downs of fixed assets/intangibles 0 0 EBIT 23 62 Operational EBIT % 2.2 % 6.4 % Exceptional items included in operational EBIT 0 0 180 160 140 120 100 80 60 40 Operational EBIT MH VAP Europe Variance Q3 2009 vs. Q3 2010 () Sold volume, product weight tonnes 14 617 13 788 20 NOK per kilo: Operational EBIT 1.55 4.62 Hereof: Exceptional items 0.00 0.00 0 EBIT Q3.09 Price Volume Raw Material cost Other Translation effects EBIT Q3.10 Marine Harvest VAP Europe achieved an operational EBIT margin of 2.2% (6.4%) in the third quarter of 2010, which is a good result given the substantial increases in raw material prices. The efforts to increase end product prices to compensate for the increased cost of raw materials continue. Revenues, prices and volumes Marine Harvest VAP Europe s operating revenues were NOK 1 042 million in the third quarter (NOK 992 million). The volume sold was 6% higher than in the same quarter last year. Sales development for fresh products was positive, with good development for salmon products as well as other seafood products. Demand for frozen salmon value-added products was strong, partly driven by sales to the US market. Sales of Atlantic salmon accounted for 69% of total sales value in the third quarter of 2010 (62%). Sales prices have increased significantly during the period to reflect the general market trends for raw materials. Compared to the third quarter of 2009, the average price achieved in EUR has increased by 10%. Renegotiated contracts will contribute to further improvement in the prices in the fourth quarter. Operations Operational EBIT was NOK 23 million in the third quarter of 2010 (NOK 64 million). Operational EBIT in EUR decreased by 60% compared to the same period last year. The decrease is due to the substantial increase in raw material costs. Fixed contracts for end products have resulted in a delay in end product price adjustments and thus margin pressure in the quarter. The renegotiated contracts will contribute to margin improvement in the coming months. Marine Harvest VAP Europe benefited from advantageous internal contract prices for salmon in the first half of 2010. The contracts were renegotiated at the end of the second quarter to reflect the new level of market prices. The adjusted prices are fully reflected in the result for Marine Harvest VAP Europe in the third quarter. Guiding Sales volume The expected sales volume for the fourth quarter is 17 000 tonnes, the same level as in the fourth quarter 2009. Marine Harvest Group Page 10
Marine Harvest Other Businesses MH Other Businesses Q3. 10 Q3. 09 Operating revenues 434 391 Operational EBIT 12-3 Fair value adj. on biomass and contracts 8-31 Restructuring costs 0 0 Income/loss from associated companies 0 0 Write-downs of fixed assets/intangibles 0 0 EBIT 20-35 Exceptional items included in operational EBIT 0 0 Marine Harvest Other Businesses delivered improved operational EBIT in the third quarter of 2010, driven by the results in Marine Harvest Faroes and Marine Harvest Ireland. Operating revenues were NOK 434 million in the third quarter of 2010 (NOK 391 million). Operational EBIT was NOK 12 million, an improvement from 2009 (NOK -3 million). Marine Harvest Ireland Marine Harvest Ireland recorded operating revenues of NOK 106 million (NOK 97 million) and achieved an operational EBIT of NOK 13 million (NOK 5 million) in the third quarter of 2010. The improvements were mainly due to higher prices. Harvest volume in the third quarter of 2010 was 2 325 tonnes gutted weight (2 340 tonnes). Operational EBIT per kilo harvested in the period was NOK 5.39 (NOK 2.21). Marine Harvest Faroes Marine Harvest Faroes achieved operating revenues of NOK 53 million (NOK 42 million) and operational EBIT of NOK 21 million (NOK 4 million) in the third quarter. NOK 14 million of the improvements in operational EBIT was a result of higher sales prices achieved. Marine Harvest Faroes also benefitted from higher volume as well as lower costs compared to the third quarter in 2009. Operational EBIT per kilo harvested in the period was NOK 15.33 (NOK 3.60). Harvested volume was 1 362 tonnes gutted weight (1 226 tonnes). Marine Harvest Asia Marine Harvest Asia sells salmon from Marine Harvest s global farming operations in the Asian market. Operating revenues amounted to NOK 241 million in the third quarter of 2010 (NOK 228 million). Total volume traded in the third quarter was 4 275 tonnes gutted weight, a decrease of 9% from last year (4 711 tonnes). The reduction was due to lower volume from Chile, and reduced sale of frozen salmon from Norway. The average price achieved in USD was up by 16%, compared to the third quarter last year. Operational EBIT amounted to NOK 3 million in the period (NOK 7 million). Sterling White Halibut Sterling White Halibut recorded operating revenues of NOK 26 million (NOK 19 million) in the third quarter. Operational EBIT in the third quarter was NOK 2 million (NOK 0 million). Holding and Parent Companies Included in Marine Harvest Other Businesses are holding companies and the parent company. Operational EBIT in the third quarter of 2010 for these companies was NOK -26 million (NOK -20 million). Marine Harvest Group Page 11
Events in the quarter and after the close of the quarter Capital Markets Day Marine Harvest arranged its first Capital Markets Day in Stavanger on 7 September 2010. The Company announced its targets for EBIT cost reductions in MH Norway and guided CAPEX level, harvest volume, financial and working capital commitments for 2011 and 2012. The material presented is available on www. marineharvest.com. Ownership restriction in Norway Ownership to licenses for production of farmed salmon and trout in Norway is regulated through separate rules of regulations. These regulations set a limit of 25% of total licensed biomass per company. Marine Harvest currently owns licenses corresponding to approximately 22% of licensed biomass for food production. Marine Harvest holds the opinion that this regulation is in conflict with articles 31 and 40 in the EEA-agreement. Consequently, Marine Harvest has filed a formal complaint with EFTA s surveillance authority (ESA). The ESA has not communicated any time-frame for its dialogue with the Norwegian government on this issue. Biological situation in Norway The occurrence of sea lice in the industry was by the end of September at approximately the same level as last year. The Norwegian Food Safety authorities registered a smaller number of sites with a lice level above the regulated trigger level for treatment, than in September 2009. On the other hand, reduced sensitivity to sea lice medication is gradually spreading to new areas. Dividend disbursed Dividend of NOK 0.20 per share was approved in an Extraordinary General Meeting in August and disbursed in September. As a result of the dividend distribution, the conversion price for the convertible bond issued in March 2010 was reduced from EUR 0.7799 to EUR 0,7494. Employee share purchase program The Board of Directors of Marine Harvest ASA (the Company) offered all permanent employees in Marine Harvest Group in Norway the opportunity to purchase shares in the Company based on the price of NOK 5.1152 per share. 376 employees accepted the offer for a total of 551 592 shares. In order to comply with its obligations under the acceptances received, the Company, on 29 September, purchased shares in the market at an average price of NOK 5.1152, which were sold to the employees. Global Sales and Distribution The work continues in establishing a new unit that will improve coordination with regard to sales and marketing of seafood products from Marine Harvest s operations. The unit will be organised with one department in Asia, one in the Americas, and one in Europe. Under each department, sales will be organised according to segment and product category. Ola Brattvoll, with experience from Lerøy Seafood Group, is appointed head of the new business unit.. Sea lice mitigation costs have increased in line with guidance. There has not been registered any material indirect costs in the third quarter. Use of wrasse in sea-lice mitigation has been very successful on fish stocked this spring. Use of medication has so far been necessary only on 2 of these 23 sites. Marine Harvest Norway has had 10 sites diagnosed with PD in regions South and West in 2010, compared to 6 in 2009. The occurrence of PD is well below the level experienced in 2007 and 2008. Marine Harvest Group Page 12
Outlook The Board is pleased with management s and employees increased focus on improving the Company s margins. The effort to reduce costs and improve prices has started to pay off, and is expected to strongly improve the Company s competitiveness going forward. The increased contract prices have improved the result for the whole Company and Marine Harvest VAP Europe adapts to the higher raw material prices. As a result of their efforts in the market, the business unit expects better results for the fourth quarter. Marine Harvest has a strong contract portfolio for the fourth quarter of 2010 with prices above the contracted prices for the third quarter. coordination of production regimes put forward by the Norwegian authorities. Hence, further consolidation will be triggered. The industry needs more consolidation and Marine Harvest will be prepared to take an active part in this process. Marine Harvest has therefore started a process to get the 25% ownership restriction in Norway abolished. The solid long-term expectations for the salmon prices, increased production and existing financing opportunities, opens for an optimisation of equity returns through a moderate increase in the net interest bearing debt going forward. This may positively affect future dividends, and also increase the possibilities for future organic growth within the current capital structure. The Company is currently focusing on optimizing production volumes from existing licences in Norway. Marine Harvest Norway is currently producing approximately 925 tonnes per licence, while the most efficient competitors are producing close to 1 150 tonnes per licence. This incremental production require limited capital expenditure and will contribute to a lower overall production cost and increased margins going forward. The Company expects, based on this production strategy, to show substantial growth in Norwegian production volumes in 2011 and 2012. Marine Harvest will harvest 322 000 tonnes gutted weight in 2011, up from 292 000 in 2010. Of this increase, 15 000 tonnes will come from Norway and 10 000 tonnes in Chile. In the fourth quarter of 2010 Marine Harvest will harvest 87 000 tonnes, in line with previous guiding. The Norwegian authorities have launched several initiatives to keep the biological situation under control. Size will be increasingly important in order to meet the stricter regulations and Significant forward volumes have been traded over the Fish Pool exchange for 2011, with recent prices around NOK 36.50 per kilo. The traded volume for 2012 is lower, at price levels around NOK 33.00 per kilo. This is significantly higher than analyst forecasts for the same period. Marine Harvest is continuously capitalising on these opportunities. The Board is very satisfied with the development in operational performance and the Company s financial position. The Company has previously communicated a target to distribute dividends semi-annually. This intention remains, but based on the solid underlying development, the Board has resolved to call an Extraordinary General Meeting to propose an dividend of NOK 0.05 per share is paid during the fourth quarter. The Board s ambition to distribute at least 75% of the free cash flow as dividend remains. On this basis, the Board expects that a high dividend will be announced when the Company s results for the fourth quarter of 2010 is presented in February 2011. Oslo, 2 November 2010 The Board of Directors of Marine Harvest ASA Ole-Eirik Lerøy - Chairman of the Board Thorleif Enger Cecilie Fredriksen Kolbjørn Jektvik Celina Midelfart Geir Elling Nygård Leif Frode Onarheim Hege Sjo Turid Lande Solheim Solveig Strand Alf-Helge Aarskog - CEO Marine Harvest Group Page 13
Interim financial report Statement of comprehensive income Note Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 2009 Revenue and other income 2 3 610.3 3 601.0 10 603.5 10 846.5 14 651.2 Cost of materials -1 776.6-1 933.2-5 392.3-6 692.9-8 828.3 Fair value adjustment on biological assets 3 250.2-320.1 592.3 162.7 301.2 Onerous contracts provisions 0.6 0.0-18.0 0.0 0.0 Restructuring costs - 6.1 2.5-6.1-163.2-169.5 Other operating expenses - 911.8-907.2-2 566.3-2 611.1-3 615.6 Income/loss from associated companies 9 42.6 5.9 131.7 41.8 69.5 Depreciation and amortisation - 163.3-166.7-486.3-543.3-687.7 Impairment losses - 1.3 0.0-2.4-381.8-373.1 Earnings before interest and taxes (EBIT) 1 044.6 282.2 2 856.1 658.7 1 347.7 Net interest expenses 7-95.7-83.7-272.3-319.6-392.9 Net currency effects 7 120.6 360.7 235.0 559.0 682.0 Other financial items 7-128.8 18.0-68.7 22.7 23.7 Earnings before tax (EBT) 940.7 577.2 2 750.1 920.8 1 660.5 Taxes - 270.5 49.0-712.5-138.5-358.3 Profit or loss for the period 670.2 626.2 2 037.6 782.3 1 302.2 Other comprehensive income Change in fair value of cash flow hedges - 64.7 392.3 119.3 1 173.6 1 326.6 Deferred tax related to fair value of cash flow hedges 17.9-111.4-34.4-338.0-379.8 Currency translation differences - 396.4-498.4 25.3-729.3-762.3 Currency translation differences related to non-controlling interests 0.5-2.6-1.6-5.4-6.3 Other gains and losses in comprehensive income 0.0 5.7 0.0 59.0 58.7 Total other comprehensive income - 442.7-214.4 108.6 159.9 236.9 Comprehensive income in the period 227.5 411.8 2 146.2 942.2 1 539.1 Profit or loss for the period attributable to Non-controlling interests 6.5-1.4 15.7 8.4 5.9 Owners of Marine Harvest ASA 663.7 627.6 2 021.9 773.9 1 296.3 Comprehensive income for the period attributable to Non-controlling interests 7.0-4.0 14.1 3.0-0.4 Owners of Marine Harvest ASA 220.5 415.8 2 132.1 939.2 1 539.5 Basic earnings per share (NOK) 0.19 0.18 0.57 0.22 0.37 Diluted earnings per share (NOK) 6 0.19 0.18 0.57 0.22 0.37 Marine Harvest Group Page 14
Statement of financial position Note 30.09.2010 30.06.2010 31.12.2009 30.09.2009 Licences 5 445.0 5 643.4 5 409.5 5 416.7 Goodwill 2 123.3 2 118.7 2 142.6 2 156.1 Deferred tax assets 97.7 93.3 54.5 21.1 Other intangible assets 130.0 136.7 136.0 138.1 Property, plant and equipment 3 712.4 3 734.0 3 518.1 3 464.4 Shares and other non-current financial assets 760.5 711.8 638.9 621.4 Total non-current assets 12 268.9 12 437.9 11 899.6 11 817.8 Inventory 784.2 702.4 742.7 779.9 Biological assets 3 6 496.3 5 631.1 5 351.1 5 130.1 Current receivables 2 206.2 2 149.9 2 223.7 1 745.3 Cash and cash equivalents 275.5 268.5 172.2 199.6 Total current assets 9 762.2 8 751.9 8 489.7 7 854.9 Total assets 22 031.1 21 189.8 20 389.3 19 672.7 Equity 11 581.3 12 075.6 11 415.5 10 815.3 Non-controlling interests 57.3 50.3 45.0 44.3 Total equity 11 638.6 12 125.9 11 460.5 10 859.6 Deferred tax liabilities 1 800.7 1 633.1 1 142.6 871.3 Non-current interest-bearing debt 6 4 983.1 4 554.6 5 116.9 4 052.6 Other non-current liabilities 6 365.8 242.9 99.8 104.6 Total non-current liabilities 7 149.6 6 430.6 6 359.3 5 028.5 Current interest-bearing debt 444.6 392.3 130.3 1 240.4 Other current liabilities 2 798.3 2 241.0 2 439.2 2 544.2 Total current liabilities 3 242.9 2 633.3 2 569.5 3 784.6 Total equity and liabilities 22 031.1 21 189.8 20 389.3 19 672.7 Marine Harvest Group Page 15
Statement of changes in equity SHARE CAPITAL SHARE PREMIUM RESERVE ATTRIBUTABLE TO OWNERS OF MARINE HARVEST ASA FOREIGN CASH FLOW OTHER PAID- CURRENCY HEDGE IN CAPITAL TRANSLATION RESERVE RESERVE OTHER EQUITY TOTAL NON- CONTROLLING INTERESTS TOTAL EQUITY Equity 01.01.2010 2 681.2 5 917.5 3 022.7 117.2-761.7 438.9 11 415.5 45.0 11 460.5 Dividend -1 527.3-438.9-1 966.2-1.7-1 967.9 Reduction of share premium reserve, not yet registered -5 900.0 5 900.0 0.0 0.0 Comprehensive income for the period 84.8 25.3 2 022.0 2 132.1 14.1 2 146.2 Total equity end of period 2 681.2 17.5 7 395.4 202.0-736.4 2 022.0 11 581.3 57.3 11 638.7 SHARE CAPITAL SHARE PREMIUM RESERVE ATTRIBUTABLE TO OWNERS OF MARINE HARVEST ASA FOREIGN CASH FLOW OTHER PAID- CURRENCY HEDGE IN CAPITAL TRANSLATION RESERVE RESERVE OTHER EQUITY TOTAL NON- CONTROLLING INTERESTS TOTAL EQUITY Equity 01.01.2009 2 609.2 8 692.7 22.7-829.6 0.6-916.1 9 579.5 45.1 9 624.6 Capital increase 72.0 230.4 302.4 302.4 Costs related to capital increase - 5.6-5.6-5.6 Reduction of share premium reserve -3 000.0 3 000.0 0.0 0.0 Change in non-controlling interests 0.0 0.2 0.2 Comprehensive income for the year 946.8-762.3 1 355.0 1 539.5-0.4 1 539.1 Total equity 31.12.2009 2 681.2 5 917.5 3 022.7 117.2-761.7 438.9 11 415.5 45.0 11 460.5 Statement of cash flow Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 2009 Earnings before interest and taxes (EBIT) 1 044.6 282.2 2 856.1 658.7 1 347.7 Adjustment for fair value adjustment and onerous contracts - 250.8 320.1-574.3-162.7-301.2 Adjustment for income/loss from associated companies - 42.6-5.9-131.7-41.8-69.5 Adjustment for depreciation and impairment losses 164.6 166.7 488.7 925.1 1 060.8 Change in inventory, trade payables and trade receivables - 262.0-24.4-103.2 822.4 349.4 Taxes paid - 53.6 105.3-160.8 83.7 32.9 Other adjustments - 1.1-64.5-80.3 1.9-50.3 Cash flow from operations 599.1 779.5 2 294.5 2 287.3 2 369.8 Payments from sale of fixed assets 4.4 1.9 19.6 5.1 13.7 Payments made for purchase of fixed assets - 228.9-138.3-693.8-455.2-643.4 Proceeds from sale of shares and other investments 0.4 1.2 26.3 45.0 66.2 Purchase of shares and other investments 0.0-21.8-0.1-22.5-22.5 Cash flow from investments - 224.1-157.0-648.0-427.6-586.0 Proceeds from convertible bond 0.0 0.0 1 820.3 0.0 0.0 Proceeds from other new interest-bearing debt (current and non-current) 444.7 0.0 3 536.7 188.1 246.7 Down payment of interest-bearing debt (current and non-current) 0.0-621.6-4 790.8-2 106.4-2 112.8 Net interest and financial items paid - 102.1-86.8-290.8-325.0-399.3 Realised currency effects 47.1 31.3 109.8-62.4 6.0 Net equity paid-in 0.0 0.0 0.0 294.6 294.6 Dividend paid to owners of Marine Harvest ASA - 752.4 0.0-1 929.0 0.0 0.0 Dividend paid to non-controlling interests 0.0 0.0-1.7 0.0 0.0 Cash flow from financing - 362.7-677.1-1 545.5-2 011.1-1 964.8 Change in cash and cash equivalents in the period 12.3-54.6 101.0-151.4-181.0 Cash and cash equivalents - opening balance 268.5 264.2 172.2 372.6 372.6 Currency effects on cash - opening balance - 5.3-10.0 2.3-21.6-19.4 Cash and cash equivalents - closing balance 275.5 199.6 275.5 199.6 172.2 Marine Harvest Group Page 16
Selected notes in interim financial report Note 1: BASIS FOR THE INTERIM FINANCIAL REPORT - ACCOUNTING PRINCIPLES This interim financial report presents the financial performance and financial position of Marine Harvest ASA and its subsidiaries (the Group), including the Group's income/loss from associated companies and from assets held for sale. The interim financial report has been prepared in accordance with International Financial Reporting Standards and the interpretations issued by International Accounting Standards Board (IASB) as adopted by EU (EU-IFRS), including IAS 34 "Interim Reporting". The revised standards IFRS 3 "Business Combinations" and IAS 27 "Consolidated and Separate Financial Statements" have been implemented. The quarterly report does not contain all information required for a full annual report, and the report should be read in conjunction with the last annual report for the Group (2009). The Group's accounting principles are described in detail in the annual report for 2009 and these principles and methods for calculation have been used in the preparation of this interim financial report. Preparation of the financial statements require use of jugdements, estimates and assumptions. The most important estimates relate to valuation of biomass, valuation of assets and valuation of taxes. All changes in estimates are reflected in the financial statements, when they occur. The consolidated financial statements are based on historical cost, with the exception of items required to be reported at fair value. Of particular relevance are deviations from historical cost in relation to financial instruments and the valuation of live fish. Biomass in seawater is measured in accordance with IAS 41 at fair value less sales and harvesting costs. Changes in the estimated value adjustment of biological assets (mainly due to harvesting in the period, biomass growth in the period, change in price and change in production cost), are presented on a separate line in the statement of comprehensive income. Classification of currency effects in comprehensive income has been changed as of 1 January 2010. Currency effects related to bank accounts, current account, trade receivables, trade payables and hedging instruments are classified within financial items and, not as previously, as part of EBIT. Comparable figures have been restated. This interim report has not been subject to any external audit. Note 2: OPERATIONAL SEGMENTS Marine Harvest has structured its operations in five main business units. Business unit MH Norway includes fish farming operations, processing and sales operations in Norway, producing and selling Atlantic salmon. The business units MH Canada and MH Scotland are fish farming and sales operations. Business unit MH Chile includes the Group's operations in Chile and in the US. Operations in Chile include fish farming, and processing facilities. In the US, the Group has a sales office in Miami and processing facilities located in Miami, Maine and Los Angeles. MH VAP Europe consists of sourcing, processing and sales activities in Belgium, Holland, France, Poland and Czech Republic, as we as sales companies in Spain and Italy and minority holdings in two Icelandic white fish companies. In addition to the business units, the Group has a number of operations which individually are smaller, and are operated as separate businesses. These other units include the farming operations in Ireland which produce and sell conventional as well as organic salmon, the salmon farming operations in the Faroes, as well as the sales organisation in Asia, the entity farming halibut, and the head office. All these are presented as "MH Other Businesses" below. Revenue and other income Business units Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 MH Norway 1 901.8 1 819.4 5 614.3 5 001.1 831.4 621.2 2 351.5 1 569.5 MH Canada 255.3 198.5 1 000.1 997.3 13.5 10.7 38.7 40.2 MH Scotland 339.1 348.6 804.6 902.6 31.9 61.5 55.7 121.1 MH Chile 637.6 611.2 1 608.1 1 776.7 4.8 5.9 13.0 54.4 MH VAP Europe 1 042.4 992.5 3 096.2 2 934.1 83.3 32.8 232.0 60.2 MH Other Businesses 434.4 391.1 1 294.6 1 171.4 35.3 28.1 123.6 91.3 Eliminations and adjustments -1 000.3-760.1-2 814.5-1 936.7-1 000.3-760.1-2 814.5-1 936.7 Group total 3 610.3 3 601.2 10 603.4 10 846.5 0.0 0.0 0.0 0.0 Operational EBITDA 1) of which internal Operational EBIT 1) Business units Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 MH Norway 658.0 433.0 1 764.8 1 199.6 590.5 366.5 1 561.6 1 002.7 MH Canada 46.0 45.5 272.0 266.7 17.4 18.5 187.2 185.4 MH Scotland 111.7 103.9 246.2 261.2 98.1 89.8 207.1 219.4 MH Chile 40.5 82.5 90.6-421.3 17.5 58.9 24.6-536.3 MH VAP Europe 42.4 87.3 188.0 221.2 22.7 63.7 127.5 150.3 MH Other Businesses 23.3 8.6 84.1 15.7 12.4-3.2 51.3-21.7 Eliminations and adjustments 0.0-0.1-1.0-0.7 0.1-0.1-0.6-0.7 Group total 921.9 760.7 2 644.7 1 542.4 758.7 594.1 2 158.7 999.1 Reconciliation from segment operational EBIT to net earnings Marine Harvest Group Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 Operational EBIT 758.7 594.1 2 158.7 999.1 Fair value adjustment on biological assets 250.2-320.1 592.3 162.7 Onerous contracts provisions 0.6 0.0-18.0 0.0 Restructuring costs - 6.1 2.5-6.1-163.2 Income/loss from associated companies 42.6 5.9 131.7 41.8 Impairment losses - 1.3 0.0-2.4-381.8 Earnings before interest and taxes (EBIT) 1 044.7 282.4 2 856.2 658.6 Net interest expenses - 95.7-83.7-272.3-319.6 Net currency effects 120.6 360.7 235.0 559.0 Other financial items - 128.8 18.0-68.7 22.7 Earnings before tax (EBT) 940.8 577.4 2 750.2 920.7 Taxes - 270.5 49.0-712.5-138.5 Profit or loss for the period 670.3 626.4 2 037.7 782.2 1) Aligned for fair value adjustments of biomass, onerous contracts provisions, income/loss from associated companies, restructuring costs and write-downs of fixed assets/intangibles. Marine Harvest Group Page 17
Selected notes in interim financial report Note 2: OPERATIONAL SEGMENTS - continued Operational EBIT per kilo (NOK) Farming units - salmonids Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 MH Norway 13.36 6.90 10.96 6.97 MH Canada 2.71 3.73 7.78 6.63 MH Scotland 10.91 8.77 9.03 8.06 MH Chile 1) n/a 7.66 n/a -17.68 MH Ireland 5.39 2.21 7.33 0.91 MH Faroes 15.33 3.60 12.30 6.89 Harvest volume (HOG) tonnes Guiding harvest volume (HOG) tonnes Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 Q4. 10 Full year 10 Farming units - salmonids Actual Actual Actual Actual Forecast Forecast MH Norway 44 180 53 110 142 483 143 838 58 000 200 000 MH Canada 6 432 4 949 24 058 27 958 10 000 34 000 MH Scotland 8 993 10 240 22 922 27 237 10 000 33 000 MH Chile 2) 740 7 689 3 797 30 326 5 000 9 000 MH Ireland 2 325 2 340 8 066 5 441 2 500 10 500 MH Faroes 1 362 1 226 3 872 4 891 1 500 5 500 Group total harvest volume 64 032 79 554 205 198 239 691 87 000 292 000 1) MH Chile is not applicable due to high impact of traded volume 2) Volume in MH Chile is sold volume, own production. Harvested volume was 1 018 tonnes in Q3 2010 and 5 748 tonnes in Q3 2009. Note 3: SPECIFICATIONS RELATED TO BIOMASS Fair value adjustment on biomass in statement of financial position 30.09.2010 30.09.2009 31.12.2009 MH Norway 970.9 425.4 661.6 MH Canada 132.1 158.7 106.2 MH Scotland 189.0 114.8 89.9 MH Chile 133.2 0.0 0.0 MH Ireland 55.8 70.8 59.2 MH Faroes 29.0 6.1 6.2 MH Other Businesses, ex MH Ireland and MH Faroes 1.8 6.8 5.3 Total fair value adjustment on biomass in statement of financial position 1 511.9 782.7 928.3 Biomass at cost MH Group 4 984.4 4 347.4 4 422.8 Biological assets MH Group 6 496.3 5 130.1 5 351.1 Fair value adjustment on biomass in statement of comprehensive income Q3. 10 Q3. 09 YTD Q3. 10 YTD Q3. 09 2009 MH Norway 272.0-267.4 309.3 12.2 248.0 MH Canada - 85.2-12.7 25.2 109.2 50.7 MH Scotland 10.6-9.0 99.8 35.6 8.8 MH Chile 45.1 0.3 138.3-8.6-8.4 MH Ireland - 0.1-18.1 0.0 26.5 15.7 MH Faroes 8.5-10.0 23.1 3.3 3.5 MH Other Businesses, ex MH Ireland and MH Faroes - 0.7-3.2-3.4-15.5-17.1 Total fair value adjustment on biomass in statement of comprehensive income 250.2-320.1 592.3 162.7 301.2 Marine Harvest Group Page 18