Q3 Interim financial statements - unlinked 21 10 · Q3 2013 THIRD QUARTER MARINE HARVEST GROUP 93...

Strong market driven by increased demand All time high profit in Scotland Morpol acquisition cleared Proposed third quarter dividend of NOK 0.075 per share

Q3 2013 THIRD QUARTER MARINE HARVEST GROUP

93 229103 215

80 035 79 438 80 921

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

Harvest volume (GW) tonnes

73 64

482

901793

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

Operational EBITNOK million

9.96

16.47 10.92

1.68

Norway Scotland Canada Chile

Operational EBITNOK per kg

Q3|2013

HIGHLIGHTS

1) Excluding change in unrealised gains/losses from salmon derivatives, fair value adjustment of biomass, onerous contracts provisions, results from associated companies, restructuring costs, write-downs of fixed assets/intangibles and other non-operational items. 2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate. 3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects (Purchase of shares in Morpol ASA and gain from the investment in Cermaq ASA are not included). 4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustment of biomass, onerous contracts provisions and other non-operational items / Average NIBD + Equity, excluding fair value adjustment of biomass, onerous contracts provisions and investment in Morpol ASA. 5) Operational EBIT per kg including allocated margin from Sales and Marketing (from own salmon).

SUMMARY OF THE THIRD QUARTER 2013 Strong markets globally driven by increased demand for salmon products.

High reference prices globally. Very good price achievement in the spot market. The contract share was 41%.

Harvest volume of 80 921 tonnes gutted weight, 13% lower than in the same quarter last year.

Operational EBIT of NOK 793 million.

High cost per kg for salmon of Norwegian origin due to increased feed costs, negative scale effects and temporary biological issues.

Record high profit for salmon of Scottish origin, while Salmon of Faroese origin achieved Operational EBIT per kg of NOK 20.58.

Capex amounted to NOK 460 million, including NOK 201 million invested in the feed factory.

Expansion of processing capacity in Asia and in the US.

Net interest-bearing debt increasing to NOK 7 882 million in the quarter, whereof NOK 1 681 million is related to Morpol. The NIBD/Equity ratio

ended at 60.2%, which is above the current target due to the Morpol acquisition.

Underlying EPS of NOK 0.13 in the quarter, while ROCE was 21.5%.

The European commission cleared the Morpol acquisition, subject to divestment of farming capacity of 18 000 tonnes in Shetland and the

Orkneys, on 30 September 2013. Morpol ASA is consolidated from this date in the statement of financial position, and the assets to be

divested are classified as “Assets/Liabilities held for sale”. The operations in Morpol will be recognised from 1 October 2013.

Third quarter dividend of NOK 0.075 will be proposed for EGM in November.

Main figures

NOK million

Operational revenue 4 307 3 647 12 487 11 498 15 569

Operational EBITDA 1) 973 241 2 703 1 086 1 321

Operational EBIT 1) 793 73 2 176 580 643

EBIT 836 1 2 631 514 969Net financial items -279 - 100 - 820 - 238 - 180Profit or loss for the period 384 - 147 1 231 123 413

Cash flow from operations 559 237 2 033 1 722 1 553

Total assets 30 083 21 803 30 083 21 803 23 317Net interest-bearing debt (NIBD) 7 882 5 005 7 882 5 005 5 381

Earnings per share (NOK) 0.10 -0.04 0.32 0.03 0.11

Underlying EPS (NOK) 2) 0.13 0.00 0.35 0.07 0.06

Net cash flow per share (NOK) 3) 0.01 0.01 0.16 0.34 0.26

ROCE 4) 21.5% 2.2% 17.3% 4.5% 3.9%Equity ratio 43.5% 49.1% 43.5% 49.1% 50.1%NIBD/Equity 60.2% 46.7% 60.2% 46.7% 46.0%

Harvest volume (gutted weight tonnes, salmon) 80 921 93 229 240 393 289 090 392 306

Operational EBIT - NOK per kg 5)

Norway 9.96 2.46 10.30 3.07 3.23Scotland 16.47 2.21 13.17 4.79 3.80Canada 10.92 -5.31 10.18 -3.00 -3.48

Chile 1.68 -2.89 -7.12 -0.03 -2.26

2012Q3. 12Q3. 13 YTD Q3. 13 YTD Q3. 12

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Q3|2013

PROFIT - OPERATIONAL PERFORMANCE AND ANALYTICAL DATA

1) MH Group adjusted for eliminations.

Marine Harvest follows the overall value creation of the operations

based on the salmon’s source of origin. For this reason the own

salmon related operational EBIT in MH Markets and MH VAP Europe

is allocated back to country of origin.

The table below and upcoming operational text provide information

along this line.

Other units reported Operational EBIT of NOK -21 million in the

quarter (NOK -36 million), including a loss of NOK 5 million from

Sterling White Halibut (NOK 2 million). The currency effects of foreign

currency contract sales towards NOK is recognised as income/cost of

NOK 30 million in Marine Harvest ASA and Marine Harvest Norway

respectively.

NOK million Q3. 13 Q3. 12 Q3. 13 Q3. 12 Q3. 13 Q3. 12 Q3. 13 Q3. 12 Q3. 13 Q3. 12

External revenue 3 193 2 627 1 019 911 82 85 14 23 4 307 3 647Internal revenue 437 406 15 0 2 966 2 415 49 8 0 0

Operational revenue 3 630 3 033 1 034 911 3 048 2 500 62 31 4 307 3 647

Operational EBIT 112 82 - 11 0 712 28 - 21 - 36 793 73Fair value adj on biomass, onerous contracts 0 0 0 0 2 - 81 2 - 4 4 - 85Change in unrealised salmon derivatives 0 0 0 0 0 0 - 3 - 13 - 3 - 13Restucturing costs 0 0 0 0 - 1 - 1 0 0 - 1 - 1Income from associated companies 0 0 0 3 48 27 0 0 48 30Write-down of fixed assets/intangibles 0 0 0 - 1 - 5 - 1 0 0 - 5 - 3

EBIT 112 82 - 11 2 757 - 29 - 22 - 54 836 1

Operational EBIT % 3.1 % 2.7 % -1.0 % 0.0 % 23.4 % 1.1 % na na 18.4% 2.0 %

MH Group 1)

MH Markets MH VAP EuropeMH Sales and Marketing MH Farming MH Other

NOK million Norway Scotland Canada Chile Ireland Faroes Other 1) MH Group

OPERATIONAL EBITMH FARMING 477 188 61 - 1 - 22 7 712

MH SALES AND MARKETINGMH Markets 58 39 6 11 0 0 -2 112MH VAP Europe - 7 0 0 0 0 0 - 3 - 11

SUBTOTAL 529 227 67 10 - 22 7 - 5 813

Other entities 2) -21 - 21

TOTAL 529 227 67 10 - 22 7 - 26 793

Harvest volume (gutted weight tonnes, salmon) 53 066 13 777 6 169 5 886 1 674 348 80 921

Operational EBIT per kg (NOK) 3) 9.96 16.47 10.92 1.68 -12.89 20.58 10.05- of which MH Markets 1.10 2.83 0.98 1.79 0.22 -0.47 1.38

- of which MH VAP Europe -0.13 -0.03 0.00 0.00 -0.14 0.00 -0.13

ANALYTICAL DATAPrice achievement/reference price (%) 4) 97% 92% 101% 103% 117% 97%Contract coverage (%) 42% 57% 0% 33% 92% 11% 41%Quality - superior share (%) 91% 94% 89% 84% 90% 94% 91%Exceptional items (NOK million) 5) -41 0 -4 -7 -33 0 -84Exceptional items per kg (NOK) 5) -0.77 0.00 -0.65 -1.16 -19.50 0.00 -1.04

GUIDANCEQ4 2013 harvest volume (gutted weight tonnes) 66 500 12 100 5 000 13 000 1 000 2 000 99 600- of which Morpol 2 500 2 100 4 6002013 harvest volume (gutted weight tonnes) 220 000 49 000 32 000 27 000 6 000 6 000 340 000- of which Morpol 2 500 2 100 4 6002014 harvest volume (gutted weight tonnes) 254 500 49 500 28 000 56 000 8 000 9 000 405 000- of which Morpol 7 000 6 500 13 500Q4 2013 contract share (%) 36% 74% 0% 19% 93% na 35%

1) Operational EBIT arising from non salmon species not allocated to source of origin 2) Sterling White Halibut, Headquarter and Holding companies3) Excluding Sterling White Halibut, Headquarter and Holding companies4) MH Markets' price achievement to third party and MH VAP Europe5) Exceptional items impacting operational EBIT

SOURCES OF ORIGIN


Q3|2013

MARKET OVERVIEW Industry Global harvest volumes of Atlantic salmon amounted to 451 700

tonnes in the third quarter, which was stable compared to same

quarter in 2012.

As for the previous quarter, volumes from Norway were reduced

compared to the same quarter last year. Exceptionally good growth

conditions during 2012 brought forward some of the planned 2013

harvest and the growth conditions during the 2013 winter have been

weaker than normal. Together these factors have led to a shortage of

harvestable sized fish.

Although Chile contributed with a considerable increase in harvest

volumes, the growth is declining compared to the trend seen over a

number of quarters. This indicates that the most significant part of the

industry rebuild has been carried out, but it is also impacted by a

reduction in harvest weights. This is considered to reflect a

combination of harvesting driven by a desire to boost liquidity and

adverse biological conditions. As for the previous quarter, supply

from Chile was higher than the harvest volumes due to sale of frozen

inventory. Inventories are however now considered to be depleted.

Output from Scotland was somewhat down compared to the same

quarter in 2012, when harvest was accelerated due to biological

issues. North American volumes were also somewhat reduced due to

planned reductions in the Vancouver Island area and considerable

biological issues on the East Coast. The remaining regions

experienced small changes in absolute volumes compared to the

same quarter of 2012.

Global demand for Atlantic salmon remains very strong, and global

prices have increased sharply compared to the same quarter of last

year based on an increase in global consumption of 2%

The reference price in Norway increased by about 40% compared to

the third quarter of 2012 based on a European supply contraction of

about 4%. The large increase in raw material prices is for the most

part transferred to the consumers in Europe. Compared to previous

quarters, this price transfer has to an increased extent also been

carried out in the smoked salmon segment. French consumers are

however still benefiting from a lag at the expense of processors.

US reference prices also increased sharply compared to the third

quarter of 2012 despite an increase in the American supply of 11%.

Prices for Chilean salmon however increased to a lesser extent than

Canadian. This is partly considered to be caused by smaller sized

fish being available from Chile due to the challenging circumstances

in the region.

Consumption in the largest global markets, the EU and the US, was

stable compared to the same quarter in 2012. The increased volumes

from Chile were to an increasing extent diverted from the US market

to the South American and European markets, including Russia.

The capacity of the Brazilian market continued to impress with a 30%

increase in consumption.

With the exception of China, consumption in Asia was generally down

in the quarter. The reduction is partly explained by lower than normal

availability of large sized fish and European suppliers focusing on

nearby markets.

Source: Kontali

Supply Q3 2013 Change vs 12 month Q2 2013tonnes GW Q3 2012 change tonnes GW

Norway 255 500 -3.8% -2.3% 230 000Chile 101 500 15.9% 36.2% 95 900Scotland 36 200 -4.2% -9.7% 32 300North America 29 400 -4.5% -4.1% 29 100Faroe Islands 15 600 5.4% 7.8% 15 600Other 13 500 -0.7% 2.2% 11 600

Total 451 700 0.4% 4.0% 414 500

Reference prices Q3 2013 Change vs Q3 2013 Change vs

NOK Q3 2012 market 4) Q3 2012

Norway 1) NOK 37.46 48.2% EUR 4.72 38.1%Chile 2) NOK 58.91 47.6% USD 9.84 45.7%North America 3) NOK 45.91 69.2% USD 7.67 67.1%

1) Average superior price per kg gutted weight (FCA Oslo)

2) Average C trim per kg (Urner Barry M iami 2-3 pound)

3) Average superior price per kg gutted weight (Urner Barry Seattle 10-12 pound)

4) M arket price in local currency

Market Q3 2013 Change vs 12 monthdistribution tonnes GW Q3 2012 change

EU 208 600 -0.9% 1.2%US 79 400 -1.1% 8.5%Russia 32 800 -9.9% -2.9%Brazil 20 100 29.7% 36.0%China/Hong Kong 16 300 13.2% 8.6%Japan 13 200 -10.2% -14.6%Other 84 200 12.1% 11.3%Total 454 600 1.7% 4.7%


Q3|2013

Marine Harvest

Geographic market presence

Total salmon revenues were distributed as indicated in the graph in

the third quarter.

Europe is by far the largest market for Marine Harvest’s salmon with

65% of the total (66%). Compared to the third quarter of 2012, the

relative share of sales to the Russian and European markets have

increased, while sales in the American market have declined as a

result of limited own harvest in Chile in the third quarter of 2013.

Sales by product

The Group’s main product is Atlantic salmon. The sales revenue

distribution across products was as follows in the third quarter:

The main product, fresh whole salmon, represented 57% of total

sales revenues, while smoked and elaborated salmon (fresh and

frozen total) accounted for 32% of total sales revenues in the period.

In line with the strategy to become an integrated protein producer,

controlling the value chain from feed to fork, Marine Harvest opened

new processing operations in Korea and Taiwan in the third quarter.

The operations produce fillets and portions for the local markets. The

Group has also opened its first Marine Harvest concept store in

Taipei, presenting salmon dishes based on Marine Harvest products

to the consumers. The store is very popular, and the concept will be

expanded to other cities and countries.

Price achievement

Strong demand contributed to a favourable market development in

the third quarter. Prices remained strong throughout the quarter,

despite a drop in September. The overall price achievement

compared to the reference price was negatively impacted by high

contract shares at prices below the spot level. The quality of

harvested fish improved significantly compared to the second quarter

from 86% superior share to 91% overall. The price achievement in

the spot market was very good in the third quarter.

* Price achievement to the five farming units, Norway, Scotland, Canada, Chile and Faroes.

The combined global price achieved by MH Markets was 3% below

the reference price in the period. The corresponding price

achievement in the third quarter of 2012 was 7% above the reference

price due to a more favourable contract portfolio. The contract shares

ranged from 0% for Canadian salmon to 57% for Scottish salmon in

the period.

The average price achievement is measured vs reference prices in all

markets (NOS for Norwegian, and Faroese salmon, derived NOS

(NOS + NOK 3.95 in the quarter) for Scottish salmon, and Urner

Barry for Canadian and Chilean salmon). The ambition over time is to

exceed the relevant reference price in all markets.

The price achievement was above the reference price level for

salmon of Canadian and Chilean origin in the third quarter. The price

achievement for salmon of Norwegian and Scottish origin was

negatively influenced by the high contract shares at prices below the

reference price.

Europe ex Russia65%

Russia6%

Americas17%

Asia11%

Rest of the world1%

Sales by Geography Q3 2013

Fresh whole salmon57%

Fresh smoked salmon6%

Fresh elaborated salmon18%

Frozen whole salmon3%

Frozen elaborated salmon8% Other

products8%

Sales by product Q3 2013

20

25

30

35

40

45

NO

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er k

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Development in Global Price Achievement (at source of origin)

MH MarketsQ3 2013 Norwegian Scottish Canadian Chilean

Contract share 42% 57% 0% 33%Quality - superior share 91% 94% 89% 84%Price achievement 97% 92% 101% 103%


Q3|2013

PROFIT - OPERATIONAL PERFORMANCE

Salmon of Norwegian origin

Operational EBIT per kg

Operational EBIT in the third quarter amounted to NOK 529 million

(NOK 144 million), which was NOK 9.96 per kg (NOK 2.46).

The increase in margin was a result of higher prices. Compared to

2012, costs per kg have increased due to higher feed costs and

reduced volume (negative scale effects) and biological issues

affecting growth.

Price and volume development

The European spot price for fresh salmon remained favourable in the

third quarter, due to strong demand and reduced supply. The volume

available for harvest was lower than anticipated in the period due to

slow seawater growth as a result of low seawater temperatures in the

beginning of the year. The third quarter prices were overall very

favourable even if a supply shock resulted in a temporary drop in the

reference price in September. Marine Harvest had a contract share of

42% for salmon of Norwegian origin in the third quarter (41%). The

overall price achieved was 3% below the reference price. Strong

price achievement in the spot market mitigated the negative effect of

contract prices below spot in the period. Quality issues from previous

quarters have been solved.

Lower seawater temperatures in the first half of 2013 combined with

changes in the stocking pattern and reduced overall stocking in

2011/12, have resulted in significant reductions in production and

harvest volume compared to 2012. Harvested volume in the third

quarter thus ended at 53 066 tonnes gutted weight, which is a

reduction of more than 5 000 tonnes from 2012 (58 481 tonnes).

Costs and operations

Feed cost for the biomass harvested in the period was higher than in

the corresponding period in 2012. Compared to the second quarter,

the feed cost has been reduced.

As in previous periods, sea lice mitigation costs have been high for

the harvested generation. The estimated exceptional cost related to

sea lice mitigation in the third quarter amounted to NOK 32 million

(MNOK 40 million). Year to date exceptional sea lice mitigation costs

are NOK 0.60 per kg (NOK 0.69). Marine Harvest expects the cost to

remain slightly below the 2012 level in 2013.

Non-seawater costs in the quarter were higher than in the same

period in 2012, due to negative scale effects. Exceptional mortality

was recorded at two sites in region South in the period due to PD

outbreak, while two sites in region Mid experienced losses after lice

treatment. A total exceptional loss of NOK 9 million was recognised in

the period (NOK 4 million).

An outbreak of Amoebic Gill Disease (AGD) was confirmed in region

South in the end of September and treatment has now been

performed at 4 sites. So far there have been no reports of

extraordinary losses in this regard. The development is causing

concern. The health team and seawater production department are

prepared to take immediate action if problems should arise.

Marine Harvest will consolidate the Morpol farming operations in

Norway (Jøkelfjord) from 1 October. The expected harvest volumes

in the fourth quarter and in 2014 are 2 500 and 7 000 tonnes gutted

weight respectively.

The application deadline for the new aquaculture licenses was

October 1, and Marine Harvest/Jøkelfjord has applied for 29 of the 45

licenses in this round. In light of the expressed criteria for allocation,

Marine Harvest is well qualified and expects its’ fair share of the new

licenses in this round.

NOK million Q3 2013 Q3 2012

Operational EBIT 529 144

Harvest volume 53 066 58 481

Operational EBIT per kg 9.96 2.46- of which Markets 1.10 0.91- of which VAP -0.13 -0.01

Exceptional items incl in op. EBIT -41 -44Exceptional items per kg -0.77 -0.76

Price achievement/reference price 97% 106%Contract coverage 42% 41%Superior share 91% 93%

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200

300

400

500

600

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Op EBIT Q32012

Price Volume Feed Oth SW costs Non SW costs Op EBIT Q32013

Operational EBIT Salmon of Norwegian OriginQ3 2012 vs Q3 2013


Q3|2013

Salmon of Scottish origin


Operational EBIT for salmon of Scottish origin amounted to NOK 227

million in the third quarter (NOK 29 million), which was NOK 16.47

per kg (NOK 2.21). The third quarter result was again the highest

achieved in the history of Marine Harvest Scotland. The increased

margin compared to 2012 was a result of higher prices, combined

with a higher harvest volume and reduced costs.


Spot prices were significantly higher in the third quarter of 2013 than

in the same period last year, as the market remained strong.

Achieved prices were negatively impacted by contract prices below

the spot level in the period. As a result, the overall price achievement

was reduced compared to 2012 and ended 8% below the reference

level in the quarter (+11%).

The contract share was 57%, compared to 54% in the third quarter of

2012. With a 94% superior share, the adjustment for quality

downgrading was minimal in the period.

The third quarter harvest volume was above the corresponding

period in 2012 with 13 777 tonnes gutted weight (12 982 tonnes).


Biological cost for fish harvested in the period was lower than in the

third quarter of 2012 due to improved operational efficiency. The cost

of feed increased slightly as the strong improvement in the feed

conversion ratio only partially mitigated the increase in the feed price.

Other sea water costs were reduced compared to the same period

last year, as good farming practices have mitigated issues at the farm

sites. In the third quarter of 2012, growth and mortality were affected

by Amoebic Gill Disease (AGD), which negatively influenced the size

of harvested fish and thereby the cost level. Non-seawater costs

have been reduced as a result of higher harvested volume (scale

effects).

All major biological key performance indicators continued the positive

trend in the third quarter. The Scottish entity did not encounter

challenges related to AGD in the period. Elevated mortality has been

recorded at one site in October. There are no other sites facing

health challenges in Scotland at present. The health team and

seawater production department are prepared to take immediate

action if problems should arise at other sites.

Marine Harvest will consolidate the Morpol farming operations on the

Scotland mainland from 1 October. The expected harvest volumes in

the fourth quarter and in 2014 are 2 100 and 6 500 tonnes gutted

weight respectively. Morpol’s salmon farming operations on Shetland

and the Orkneys (18 000 tonnes annually) will be divested as

required by the European commission. Assets to be divested are

classified as “Assets held for sale” in the statement of financial

position.

The Board is very pleased with the development of Marine Harvest

Scotland, both financially and operationally, and congratulates the

Scottish team with the second consecutive quarter of record profit.




Operational EBIT per kg 16.47 2.21- of which Markets 2.83 1.63- of which VAP -0.03 0.00

Exceptional items incl in op. EBIT 0 - 4Exceptional items per kg 0.00 -0.29


0

50

100

150

200

250

Op EBIT Q32012

Price Volume Feed Oth SWcosts

Non SWcosts

Translation Op EBIT Q32013

Operational EBIT Salmon of ScottishOrigin Q3 2012 vs Q3 2013


Q3|2013

Salmon of Canadian origin


Operational EBIT amounted to NOK 67 million in the third quarter

(NOK -44 million), which was NOK 10.92 per kg (NOK -5.31).

The Canadian operations continued to deliver strong results through

a combination of high prices, reduced claims ratio and the spot

position of sales.


The prices for fresh whole Canadian salmon remained strong in the

third quarter. Prices increased from the second quarter, and ended

significantly higher than in the third quarter last year. Limited

availability of salmon of Canadian origin in the American spot market

is the main driver for the observed spot price increase. Seasonal

demand reduction contributed to prices trending downwards towards

the end of the quarter, with September falling below the USD 3.50

per lb mark.

With reduced effects of soft flesh (Kudoa), the price achievement has

improved significantly. The price achievement in the third quarter was

1% above the reference price. There were no contracts in the third

quarter of 2012 and 2013 for salmon of Canadian Origin.

The impact of Kudoa related claims included in operational EBIT was

NOK 4 million in the period (NOK 9 million), a reduction of 55% from

the third quarter of 2012. Marine Harvest Canada harvested 6 169

tonnes gutted weight in the third quarter (8 254 tonnes).


Favourable development in the biological performance has

contributed to cost reductions in Canada. The third quarter total cost

level increased compared to last year however, due to higher smolt

and other seawater costs, combined with negative scale effects in

non-seawater costs. The planned reduction in harvest volume will

continue to negatively influence the full cost per kg going forward.

The reduction in harvest volume is a result of the reduction in smolt

output in 2011 and 2012.

The third quarter is normally challenging from an operational point of

view in Canada, due to algae and plankton blooms. Minor blooms

were recorded in the period, but no exceptional mortality has been

recognised in the quarter. In 2012, an algae bloom resulted in

elevated mortality and recognition of NOK 4 million in exceptional

cost.

The Board is pleased to see continued good results in the Canadian

operation.


Operational EBIT 67 - 44


Operational EBIT per kg 10.92 -5.31- of which Markets 0.98 0.76- of which VAP 0.00 0.00



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60

80

100

Op EBIT Q32012

Price Volume Feed Oth SW costs Non SWcosts


Operational EBIT Salmon of Canadian OriginQ3 2012 vs Q3 2013


Q3|2013

Salmon of Chilean origin


Operational EBIT for salmon of Chilean origin amounted to NOK 10

million in the period (NOK -28 million). The farming operations

achieved a break-even result in the quarter, while the allocated profit

from the sales and smoked operations was NOK 11 million. The loss

in the discontinued Chilean smoked operations amounted to NOK 2

million in the period.


Marine Harvest Chile recommenced harvest in July after a quarter

without harvest. The prices for Chilean salmon remained strong in the

third quarter, despite falling from the peak level in June, and ended

significantly higher than the third quarter last year. At the end of the

period, the reference price was USD 4.44 per lb fillet (UB average all

sizes). The price achieved was 3% above the reference price in the

period as good spot price achievement in the Brazilian and Latin

American markets mitigated the negative effects of unfavourable

contracts and downgrading. The contract share was 33%, compared

to 21% in the third quarter of 2012. The superior share was 84% in

the period.

Marine Harvest Chile harvested 5 886 tonnes gutted weight in the

third quarter (9 852 tonnes).

The volume effect is positive despite lower volume in the third quarter of 2013 than in the

third quarter of 2012, due to negative margin on sales in 2012.


The biological development remains a concern. The sealice load at

the end of the quarter was slightly lower than at the corresponding

time in 2012. The cost of harvested fish has increased compared to

2012 due to higher feed and other operational costs. In the third

quarter, the cost per kg for a head on gutted salmon packed in a

standard box was USD 5.10.

Exceptional mortality in the amount of NOK 7 million was recognised

in the quarter due to culling of fry after a decision to reduce the

planned stocking in 2014.

Other issues

The closure of the smoked seafood operation in Chile (Delifish) was

completed on 30 September 2013, as planned. Marine Harvest is

pleased to report that most of the people leaving the Group already

have secured new jobs.

Marine Harvest is only utilising a limited number of its available

licences in Chile, focusing on good farming practices and working

with the authorities to set up as sustainable regulatory framework for

the Chilean salmon farming industry. The Board appreciates the

efforts made to drive best practice, and congratulates the Chilean

organisation for being an industry leader in benchmarks on biomass

growth and survival during challenging times. The Board remains

concerned about the general development of the Chilean industry

and monitors the situation closely.

SALMON OF CHILEAN ORIGIN


Operational EBIT 10 - 28


Operational EBIT per kg 1.68 -2.89- of which Markets 1.79 0.32- of which VAP 0.00 0.00

Exceptional items incl in op. EBIT -7 0Exceptional items per kg -1.16 0.00


-40-30-20-10

010203040

Op EBIT Q32012

Price Volume Feed Oth SWcosts

Non SWcosts


Operational EBIT Salmon of Chilean OriginQ3 2012 vs Q3 2013


Q3|2013

Salmon of Irish origin

Salmon of Irish origin achieved an operational EBIT of NOK -22

million in the third quarter (NOK 5 million). Operational EBIT per kg

harvested in the period was NOK -12.89 (NOK 2.03).

The third quarter was another strong quarter price wise as the

organic salmon market remains very favourable. Harvest volume was

1 674 tonnes gutted weight (2 296 tonnes).

Operationally, the third quarter was a very challenging quarter for the

Irish unit. Pancreas Disease (PD) severely affected 2 sites, while high

occurrences of jelly fish and algal blooms were reported across all

regions, resulting in elevated mortality. Treatments have been

successful, but water temperatures reaching 21 degrees at peak

contributed to treatment losses. Exceptional mortality recognised in

the period, amounted to NOK 33 million (NOK 14 million).

The Board recognises the efforts made by the Irish team under

challenging conditions.

Salmon of Faroese origin

In the third quarter, the Faroese operations delivered record high

Operational EBIT per kg through a combination of favourable prices

and costs, the spot position of sales and only harvesting in the peak

month for price (July).

Salmon of Faroese origin achieved an operational EBIT of NOK 7

million in the third quarter (NOK 7 million). In per kg terms,

operational EBIT amounted to NOK 20.58 per kg harvested (NOK

5.38).

Harvest volume in the third quarter was 348 tonnes gutted weight

(1 364 tonnes). Marine Harvest recommenced harvesting of salmon

of Faroese origin in October.

The Board congratulates the Faroese operation with the highest EBIT

per kg ever achieved on a quarterly basis in the Group.


Operational EBIT - 22 5


Operational EBIT per kg -12.89 2.03- of which Markets 0.22 0.31- of which VAP -0.14 0.01


Price achievement/reference price na naContract coverage 92% 94%Superior share 90% 88%



Harvest volume 348 1 364

Operational EBIT per kg 20.58 5.38- of which Markets -0.47 0.63- of which VAP 0.00 0.00

Exceptional items incl in op. EBIT 0 0Exceptional items per kg 0.00 0.00

Price achievement/reference price 117% 102%Contract coverage 11% naSuperior share 94% 96%


Q3|2013

MH VAP Europe

Please note that the operational EBIT for salmon in MH VAP Europe also is included in the

results per country of origin.

Operational EBIT

Operational EBIT for VAP Europe ended at NOK -11 million in the

period (break even in the same period in 2012). The margin

contribution from salmon (mainly salmon of Norwegian origin) was

NOK -7 million, while the contribution from other species was NOK -3

million in the third quarter. The operational EBIT margin in VAP in the

period was -1.0% (0.0%).

Prices and volume

Marine Harvest VAP Europe’s operating revenues were NOK 1 034

million in the third quarter (NOK 911 million).

Volume sold in the period was marginally lower than in the same

quarter in 2012 while the average price achieved in EUR was 4%

higher than in the corresponding period last year. The salmon sales

volume was also stable compared to 2012 at 62% of the total volume

(62%). Total volume sold in the third quarter was 14 094 tonnes

product weight (14 143 tonnes).

The market is expected to remain challenging going forward, and

given the high raw material prices, the price of the end product must

continue to increase in order to achieve sustainable margins.

Costs

The strong increase in raw material prices significantly affected the

performance in the third quarter as price increases for end product

only partially compensated for the increased raw material cost in all

categories (fresh, frozen and smoked products).

Good salmon raw material coverage for contract sales had a positive

effect on margins in the period, although the contract coverage was

lower than in the first half of the year. The reduced availability of non-

superior raw material affected the profit for some products in the

quarter. Efficiency improvement in production continues to have a

positive effect on margins in most units, but the Polish frozen

operations experienced efficiency and yield losses due changes of

production facilities. The issues have now been resolved, but the

business was loss making in the quarter.

Both the fresh and the smoked operations remain challenged due to

a lag in passing the increased cost of raw materials onto the

customers. Some improvements were however reported in the third

quarter despite the increased market pressure and an unfavourable

mix. The loss in the French smoked operations amounted to NOK 14

million in the third quarter.

Other issues

The plan to restructure the European VAP operations where the

ambition is to optimize the capacity usage and to concentrate the

fresh and MAP production on three sites (one in Belgium and two in

France) and the smoked production in two sites (one in Belgium and

one in France) is progressing. Negotiations with trade unions started

in September and the overall project is running according to plan. The

implementation will mainly take place during the spring of 2014.

On 30 September the European Commission approved Marine

Harvests acquisition of Morpol. Although the Morpol processing

operations will be maintained as a separate segment, it is believed

that cross learning between Morpol and Marine Harvest’s VAP

operations in Europe will benefit both organisations.

The Board is disappointed with the lack of profitability in the VAP

operations. The Board is confident, however, that the integration of

Morpol and the restructuring of the VAP operational footprint will

show results in the year to come. Integrating a strong downstream

operation with the leading salmon farming company will increase the

Group’s production flexibility compared to competitors.


Operating revenues 1 034 911

Operational EBIT - 11 0Operatonal EBIT % -1.0% 0.0%

Volume sold (tonnes product weight) 14 094 14 143

Exceptional items 0 0

Volume share salmon 62% 62%Revenue share salmon 69% 66%Gross margin share salmon 56% 64%

-30

-20

-10

0

10

20

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40

50

Op EBIT Q32012

Price Volume Raw Materials Other Translation Op EBIT Q32013

Operational EBIT VAP Europe Q3 2012 vs. Q3 2013


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Q3|2013

PLANET – SUSTAINABLE AND RESPONSIBLE DEVELOPMENT

All Marine Harvests operations and the long‐termprofitability ultimately depend on sustainable andenvironmentally responsible interactionswith thenaturalenvironment. Tomaintain fish health, avoid escapes andminimize theenvironmental impactof theoperations, theGroupneedsthebestskilledpeople.

Sustainable growth – Global Salmon Initiative (GSI)

On August 15, CEOs of 15 global salmon producers launched a

major industry-led sustainability initiative – The Global Salmon

Initiative (GSI). GSI commits the participating companies to work

towards greater industry cooperation and transparency, in order to

achieve significant and continuous progress in industry sustainability.

For further information on GSI and its ambitions, see Events.

Escape prevention

Marine Harvest has a target of zero fish escapes and is constantly

striving to prevent escapes and improve methods, equipment and

procedures that can minimise or eliminate escapes. In the third

quarter there were three escape incidents, one in Norway, one in

Scotland and one in Chile where a total of 2 201 fish escaped. In the

third quarter of 2012, there was 1 escape incident with 400 fish lost.

Fish health

Infectious Salmon Anaemia (ISA): ISA re-emerged in the Chilean

industry in the first quarter, but there were no new confirmed or

suspected sites reported in the third quarter. 45 sites were HPRO

positive at the end of the third quarter, 3 of them being Marine

Harvest sites. HPRO is the avirulant/non-pathogenic strain of the ISA

virus without clinical symptoms. Marine Harvest supports the

authorities in their strict measures to immediately harvest out sites

with ISA outbreaks.

Pancreas Disease (PD): There were 3 sites diagnosed with PD in

Norway in the period, compared to 5 in the third quarter of 2012. The

related mortality has been material at two sites in region South.

There were no sites diagnosed with PD in Scotland in the period, but

1 site in Ireland (last year no sites in Scotland and Ireland).

Amoebic Gill Disease (AGD): High presence of a microscopic

amoeba named Neoparamoeba perurans, caused Amoebic Gill

Disease, elevated mortality and reduced performance in Scotland

and Ireland in 2012. In 2013, the amoeba has also been found in

Norway.

Marine Harvest did not encounter exceptional mortality related to

AGD in the third quarter, but one clinical outbreak was reported in

Norway in September and one in Scotland in October. In Norway, 4

sites have been treated following the outbreak, while no additional

sites have been diagnosed with AGD in Scotland. The Group’s

health team and seawater production departments are prepared to

take immediate action if challenges should arise.

Lice management

Marine Harvest actively works to reduce the sea lice count in all

farming units. Chile and Regions South, West and North in Norway

reported similar or lower levels of sea lice at the end of September

compared to the same time in 2012. High seawater temperatures

have contributed to lice levels above the 2012 level in Scotland,

Ireland, Canada and region Mid in Norway. Although below the year

ago level, the lice load in Chile remain a concern. Marine Harvest

Chile continues to work to promote good sea lice practices both

internally and in cooperation with the industry and the authorities.

Medicine use

Marine Harvest focuses on preventing infectious diseases and

limiting their spread. If fish get infected, they are treated with

approved medicines. In the third quarter, the total use of antibiotics

corresponded to 11 grams per tonne biomass produced compared to

2 grams per tonne in the third quarter of 2012, mainly due to

increased use in Chile to treat for Rickettsia (SRS).

Reduced mortality in Norway

In 2012, Marine Harvest Norway initiated the project Biosecurity &

Generation Survival Excellence in cooperation with Group R&D. The

overall goal is to improve generation survival and reduce the risk of

infectious disease. Compared to the first 9 months of 2012, biomass

lost in Norway has been reduced by 25%, a significant achievement.

For further information regarding sustainability and biological risk

management, reference is made to the 2012 Annual report.

GUIDING PRINCIPLE AMBITION Q3 2013 ACHIEVEMENT

Ensure sustainable wild-farmed

interaction in the farming activity

Zero escapes 3 escape incidents – 2 201 fish lost

Ensure healthy stocks minimising

diseases and losses in the farming

activities

Increase survival rates Accumulated mortality (in numbers)

was 2.95% compared to 4.20% in the

third quarter of 2012


Q3|2013

EVENTS DURING AND AFTER THE CLOSE OF THE QUARTER

Acquisition of Morpol

On 30 September, the European commission approved the Morpol

transaction subject to certain conditions. This was an important step

towards Marine Harvest’s goal of becoming a fully integrated protein

company. As of today, Marine Harvest owns 87.1% of the shares in

Morpol ASA and the company remains listed on the Oslo Stock

Exchange. An extraordinary general meeting will be held on 23

October, changing the structure of the Morpol ASA Board.

Application for new licenses in Norway

The Ministry of Fishery and Coastal Affaires is in the process of

allocating 45 new licenses, implying an increase in the maximum

allowed biomass in Norway of approximately 5%. Marine Harvest

including Morpol has applied for 29 of the licenses. In light of the

expressed criteria for allocation, Marine Harvest is well qualified and

expects its’ fair share of the new licenses in this round.

Expansion of the Group’s smoked operations in the US

Based on good performance and growth potential, Marine Harvest has

decided to expand its smoked operations in the US, Ducktrap River of

Maine in Belfast, Maine. The opening of the expanded facilities was

on 21 October, and the expansion will enable business growth in the

US market.

New government in Norway - Marine Harvest input to

priorities in salmon aquaculture

Marine Harvest has high expectations for the newly appointed

government’s work on seafood, and has issued a memo describing

the Group’s view on how to support the vision of becoming a leading

seafood nation. Marine Harvest recommends a continuation of the

current system using licenses and Maximum Allowed Biomass (MAB)

to regulate production. A predictable annual growth of 3% to 5% of the

MAB over 10 years is recommended. Certifications according to the

ASC standards should be encouraged and the waste in the industry

must be reduced to safeguard fish wellbeing and reduce the spread of

sea lice and contagious diseases. It is also encouraged to set up a

new Directorate for Aquaculture to ensure efficient administration of

the industry. Marine Harvest further recommends that the local

communities to a greater extent should receive the benefits of

facilitating the growth of the aquaculture industry.

Opening of new processing plants in Korea and Taiwan

In line with the strategy to become an integrated protein producer,

controlling the value chain from feed to fork, Marine Harvest opened

new processing operations in Korea and Taiwan in the third quarter.

The operations produce fillets and portions for the local markets. The

Group also opened its first Marine Harvest concept store in Taipei,

presenting salmon dishes based on Marine Harvest products to the

consumers. The store is very popular, and the concept will be

expanded to other cities and countries.

Marine Harvest recognised for climate change

transparency and financial reporting

Marine Harvest was recognised at several occasions in the third

quarter. In the Carbon Disclosure Project (CDP) Nordic 260 Climate

change Report for 2013, Marine Harvest was recognised for the

Groups climate change transparency. The recognition is given to those

companies listed on the Nordic stock exchanges that have displayed a

strong approach to the disclosure of information regarding climate

change. The Group’s financial communication received recognition

from the financial community in the Stockman and Farmand prices.

Global Salmon Initiative (GSI) – commitment to

sustainable salmon farming

On August 15 CEOs of 15 global salmon producers launched a major

industry-led sustainability initiative – The Global Salmon Initiative

(GSI). GSI commits the participating companies to work towards

greater industry cooperation and transparency, in order to achieve

significant and continuous progress in industry sustainability. With a

shared ambition of improving performance across three pillars of

sustainability: reducing environmental impact, increasing social

contribution and maintaining economic growth, GSI focuses on areas

where they can make ambitious, yet achievable improvements within a

realistic timeframe. The Aquaculture Stewardship Council (ASC)

standard for salmon aquaculture provides the framework for the

reporting of progress. The ASC standard is a certifiable standard

resulting from the Salmon Aquaculture Dialogue started 9 years ago

by the WWF and launched 24 August 2013.

Feed division

Marine Harvest Fishfeed AS is progressing according to plan. The

construction of the new feed plant is on schedule and the cost is as

expected. The recruitment of factory operators started in the third

quarter.

Third quarter dividend

In an extraordinary general meeting on 16 September, it was resolved

to pay out NOK 0.05 per share in dividend based on the 2013 results.

The Board in Marine Harvest ASA will further propose a dividend of

NOK 0.075 per share for an extraordinary general meeting in

November based on the third quarter results.


Q3|2013

OUTLOOK

On the back of a 2% increase in volumes supplies to the market,

prices in the first nine months of the year increased by about 40%

and the value of the total industry supply increased by some NOK

11 billion. In the third quarter the strong market combined with good

operational performance, enabled Marine Harvest to generate an

operational EBIT of NOK 793 million.

The Morpol competition clearance marks a significant step in the

direction of becoming an integrated marine protein provider. In

addition to bringing the world’s largest and best performing salmon

processing business into the portfolio, a challenging restructuring

programme is underway within the existing processing entities in MH

VAP Europe. The Board is confident that the combined downstream

operations in Europe will contribute to reduced earnings volatility for

the group as well as upholding a strong performance in its own right.

From 2014, Marine Harvest will have the capability to convert a

volume equivalent to 1/3 of its European salmon output into

consumer products.

The group’s secondary processing capability in Asia was further

strengthened in the quarter through the opening of plants in Korea

and Taiwan. These operations supplements similar entities in Japan

and China and provide the organisation with forceful tools for

making attractive products accessible to consumers. The Board is

confident that these investments together with marketing and

consumer education initiatives will prove effective to tap into the

potential in this region of growing population, purchasing powers

and protein consumption per capita.

During 2013, considerable capital is invested into the business to

grow 2014 harvest volumes beyond 400 thousand tonnes and for

the construction of the new feed plant in Norway, which will be

operational from the second half of 2014. The Board is confident

that the plant will have higher efficiency than the current players,

and that subsequent expansion in this area can form a strong

business area for Marine Harvest. In the short run, Marine Harvest’s

exposure to the concentrated feed industry will be significantly

reduced. Despite the high level of investment, the strong market

combined with the Group’s efficient financing enables another

quarterly dividend. The Board is pleased to propose a NOK 0.075

dividend for the third quarter.

Marine Harvest is continually monitoring the biological, sanitary and

legislative development within its geographically well diversified

salmon farming portfolio. The recent AGD cases in Norway have not

yet caused operational problems, but the Board is monitoring this

situation closely to secure that necessary contingency plans are

implemented in case the situation should escalate. The Board

remains concerned about the status and development in Chile which

is largely caused by an inadequate regulatory framework.

Considerable resources are applied to assist in the implementation

of measures aimed at improving the situation for the industry.

Marine Harvest has high expectations for the newly appointed

government’s work on seafood and has issued a memo describing

the Group’s view. Marine Harvest recommends a continuation of the

current system using licenses and Maximum Allowed Biomass

(MAB) to regulate production. A predictable annual growth of 3% to

5% of the MAB over 10 years is recommended.

The feed prices have shown a weaker development in the recent

quarters. If prices remain at the current level, it is likely that

production cost for the next generations of salmon will be reduced.

Marine Harvest is actively monitoring opportunities to increase the

size of its operation. The Group has significant growth potential in

existing licenses in Chile, but is also considering M&A opportunities.

In order to make accretive M&A transactions it is of vital importance

that the company has an efficiently valued equity currency.

After a short term dip during the third quarter, the Board is very

encouraged by the continuing high spot prices combined with

futures prices of NOK 38 and NOK 35 per kg for 2014 and 2015

respectively. The strength in demand combined with a supply side

which seems curtailed by the limited room for expansion within the

Norwegian regulatory environment and the adverse biological

situation in Chile, provides an interesting dynamic for the coming

periods. A continued strong market combined with reduced

investments in 2014 poses a very attractive net cash flow

opportunity. In combination with expected proceeds from the forced

divestments in the UK, this poses an attractive dividend opportunity

for the Group’s shareholders.

It is the Board’s opinion that the Group is uniquely positioned with its

integrated business model and diversified geographic production of

the only aquaculture specie which is successfully industrialised with

large volumes. With its vision Leading the Blue Revolution – strong

expected earnings, and a solid dividend - Marine Harvest expects

that the stock will get increased investor attention in the protein peer

group when the shares are listed in the US.

The Group expects to harvest approximately 100 000 tonnes gutted

weight in the fourth quarter. The NOS price for October has so far

been approximately 50% higher than in 2012. The Board anticipate

that the market will remain tight for the remainder of the year with a

likely positive price development in the end of the quarter. The

Group expects to deliver solid year over year improvement in the

fourth quarter. The result in the fourth quarter is expected to be

strong with the potential to further increase the quarterly dividend.


Q3|2013

SUMMARY YEAR TO DATE 2013

Strong global markets driven by increased demand, has resulted in significant price increases compared to 2012.

Harvest volume of 240 393 tonnes gutted weight, a decrease of 17% compared to last year.

Operational EBIT of NOK 2 176 million, significantly higher than last year.

The cost of salmon of Scottish and Canadian origins has been reduced from 2012, while the cost of salmon of Norwegian origin has

increased.

Launching of restructuring initiatives in MH VAP Europe and in the Chilean smoked operations.

Cash flow from operations of NOK 2 033 million.

An unsecured bond of NOK 1 250 million was issued in February and a convertible bond of EUR 350 million was issued in May.

Additional shares in Morpol ASA were acquired through a mandatory offer in the first quarter. Marine Harvest ASA owns 87.1% of the shares.

The European commission cleared the Morpol acquisition, subject to divestment of farming capacity of 18 000 tonnes in Shetland and the

Orkneys, on 30 September 2013. Morpol ASA is consolidated from this date in the statement of financial position, and the assets to be

divested are classified as “Assets/Liabilities held for sale”. The operations in Morpol will be recognised from 1 October 2013.

Marine Harvest ASA issued a voluntary offer to buy the shares in Cermaq ASA in June. Received acceptances were below the set threshold

level of 33.4%, and the process was terminated. Received dividend and gain on sales of shares in Cermaq ASA totalled NOK 133 million.

Earnings per share NOK 0.32, underlying earnings per share NOK 0.35 and net cash flow per share NOK 0.16.

ROCE was 17.3%.

NIBD/Equity ended at 60.2%.

OTHER RISKS

Marine Harvest has not identified any additional risk exposure

beyond the risks described in note 3 of this report and the 2012

Annual report.

Reference is also made to the Planet section and the Outlook section

of this report for other comments to Marine Harvest’s risk exposure.

Oslo 22 October 2013

The Board of Directors of Marine Harvest ASA

Ole-Eirik Lerøy

- Chairman of the Board

Leif Frode Onarheim

- Deputy Chairman of the Board

Cecilie Fredriksen Michael Parker

Hege Sjo

Solveig Strand Tor Olav Trøim

Stein Mathiesen

Geir Elling Nygård Turid Lande Solheim Alf-Helge Aarskog

- CEO


INTERIM FINANCIAL STATEMENTS Q3|2013

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

NOK million Note Q3. 13 Q3. 12 YTD Q3. 13 YTD Q3. 12 2012

Revenue 4 4 303.6 3 633.3 12 469.2 11 411.3 15 463.5

Cost of materials -2 075.1 -2 260.0 -6 223.9 -7 111.5 -9 666.5

Other operating expenses -1 258.5 -1 145.7 -3 559.6 -3 300.3 -4 582.2

Depreciation and amortisation - 180.8 - 167.8 - 527.6 - 506.3 - 677.2

Fair value adjustment on biological assets 5 - 112.6 - 85.1 670.6 - 51.5 350.2

Onerous contracts provision 116.7 - 0.3 17.6 18.7 - 6.1

Restructuring cost - 0.5 - 0.8 - 238.4 - 0.8 - 0.8

Other non-operational items 0.0 0.0 - 74.4 0.0 0.0

Income from associated companies 48.3 30.3 105.4 57.9 88.3

Impairment losses - 5.2 - 2.5 - 7.9 - 3.7 - 0.5

Earnings before interest and taxes (EBIT) 835.9 1.4 2 631.0 513.7 968.7

Interest expenses 8 - 166.3 - 92.0 - 445.6 - 281.8 - 382.8

Net currency effects 8 - 105.6 154.2 - 285.2 400.2 523.3

Other financial items 8 - 7.1 - 162.5 - 88.8 - 356.2 - 320.0

Earnings before tax 556.9 - 98.9 1 811.4 275.9 789.2

Taxes - 173.4 - 47.7 - 580.5 - 152.5 - 376.5

Profit or loss for the period 383.6 - 146.6 1 230.9 123.5 412.6

Other comprehensive income

Items to be reclassified to profit and loss in subsequent periods:

Change in fair value of cash flow hedges - 25.2 - 24.9 - 117.6 - 48.0 - 113.5

Deferred tax related to fair value of cash flow hedges 7.0 6.9 32.9 13.0 31.1

Change in fair value of interest swaps 105.7 0.0 160.4 0.0 0.0

Deferred tax related to fair value of interest swaps - 29.6 0.0 - 44.9 0.0 0.0

Currency translation cash flow hedges 0.0 0.1 0.0 - 0.1 - 0.2

Currency translation differences 138.2 - 132.2 455.5 - 210.2 - 325.6

Currency translation differences non-controlling interests 0.2 - 1.6 2.1 - 3.7 - 4.0 196.3 - 151.7 488.4 - 249.0 - 412.2

Items not to be reclassified to profit and loss:

Other gains and losses in comprehensive income 0.8 - 0.1 20.8 0.0 3.5

Other gains and losses in non-controlling interests 1.6 0.0 1.6 0.0 0.0

Other comprehensive income, net of tax 198.7 - 151.8 510.8 - 249.0 - 408.7

Total comprehensive income in the period 582.3 - 298.4 1 741.6 - 125.5 3.9

Profit or loss for the period attributable to

Non-controlling interests 3.3 2.6 9.8 1.2 4.0

Owners of Marine Harvest ASA 380.3 - 149.2 1 221.1 122.3 408.6

Comprehensive income for the period attributable to

Non-controlling interests 3.5 1.0 11.9 - 2.5 0.0

Owners of Marine Harvest ASA 578.8 - 299.4 1 729.8 - 123.0 3.9

Basic and diluted earnings per share (NOK) 10 0.10 -0.04 0.32 0.03 0.11


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NOK million Note 30.09.2013 30.06.2013 31.12.2012 30.09.2012

ASSETS

Licences 6 033.2 5 564.8 5 435.4 5 482.2

Goodwill 2 399.0 2 151.3 2 115.5 2 117.7

Deferred tax assets 196.6 105.8 73.9 158.8

Other intangible assets 163.7 114.7 114.2 117.3

Property, plant and equipment 6 240.9 4 703.3 4 111.9 4 064.2

Investments in associated companies 752.3 694.5 647.3 608.0

Other shares and other non-current assets 95.0 1 755.4 1 081.8 107.0

Total non-current assets 15 880.7 15 089.9 13 579.9 12 655.3

Inventory 1 252.4 760.7 819.7 875.3

Biological assets 5 8 155.1 7 043.7 6 207.9 5 853.4

Current receivables 3 019.4 2 479.1 2 374.7 2 149.1

Cash 751.2 858.3 335.3 270.3

Total current assets 13 178.1 11 141.8 9 737.6 9 148.1

Asset held for sale 7 1 023.7 0.0 0.0 0.0

Total assets 30 082.5 26 231.7 23 317.4 21 803.4

EQUITY AND LIABILITIES

Equity 12 788.3 12 392.0 11 619.7 10 643.4

Non-controlling interests 302.9 7.1 69.0 66.4

Total equity 13 091.3 12 399.1 11 688.7 10 709.8

Deferred taxes liabilities 2 990.0 2 805.2 2 543.7 2 416.9

Non-current interest-bearing debt 6 417.6 6 444.1 5 338.5 4 955.8

Other non-current liabilities 1 049.2 983.8 414.7 320.8

Total non-current liabilities 10 456.7 10 233.1 8 296.9 7 693.4

Current interest-bearing debt 2 215.5 271.4 377.8 319.4

Other current liabilities 4 104.4 3 328.1 2 954.1 3 080.8

Total current liabilities 6 319.9 3 599.5 3 331.9 3 400.2

Liabilites held for sale 7 214.6 0.0 0.0 0.0

Total equity and liabilities 30 082.5 26 231.7 23 317.4 21 803.4

Q3|2013


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

NOK million Q3. 13 Q3. 12 YTD Q3. 13 YTD Q3. 12 2012

Earnings before taxes (EBT) 556.9 - 98.9 1 811.4 275.9 789.2

Interest expence 166.3 92.0 445.6 281.8 382.8

Currency effects 105.6 - 154.2 285.2 - 400.2 - 523.3

Other financial items 7.1 162.5 88.8 356.2 320.0

Fair value adjustment and onerous contracts - 4.1 85.4 - 688.2 32.8 - 344.1

Income/loss from associated companies - 48.3 - 30.3 - 105.4 - 57.9 - 88.3

Depreciation and impairment losses 186.0 170.3 535.5 510.1 677.7

Change in working capital - 349.7 36.6 - 550.9 845.7 472.4

Taxes paid - 19.7 - 19.3 - 46.5 - 100.5 - 122.8

Restructuring & other non-operational items - 39.0 - 3.7 267.7 - 11.7 - 15.0

Other adjustments - 1.7 - 3.5 - 10.2 - 10.4 4.3

Cash flow from operations 559.4 236.9 2 033.0 1 721.8 1 552.9

Proceeds from sale of fixed assets 5.9 6.5 19.1 69.0 70.6

Payments made for purchase of fixed assets - 460.4 - 176.0 -1 329.8 - 492.6 - 732.9

Proceeds from associates and other investments 0.6 6.6 225.3 35.4 124.3

Purchase of shares and other investments 2) 275.8 0.0 - 525.6 - 6.8 - 519.6

Cash flow from investments - 178.1 - 162.9 -1 611.0 - 395.0 -1 057.6

Proceeds from convertible bond - 1.0 0.0 2 673.7 0.0 0.0

Proceeds from new interest-bearing debt 2.3 0.0 1 252.3 0.0 12.2

Down payment of interest-bearing debt - 224.7 - 105.3 -3 183.5 -1 243.9 - 796.6

Net interest and financial items paid - 115.7 - 89.4 - 368.8 - 239.0 - 302.3

Realised currency effects 55.0 55.3 200.3 135.8 209.9

Net equity paid-in 0.0 0.0 0.0 0.0 425.0

Dividend paid to owners of Marine Harvest ASA - 201.4 0.0 - 549.2 0.0 0.0

Transactions with treasury shares 0.2 0.0 0.2 0.0 0.0

Cash flow from financing - 485.3 - 139.4 25.0 -1 347.1 - 451.8

Change in cash in the period - 104.0 - 65.4 447.0 - 20.3 43.5

Cash - opening balance 1) 803.7 254.8 246.0 213.1 213.2

Currency effects on cash - opening balance 2.8 - 4.3 9.5 - 7.7 - 10.6

Cash - closing balance 1) 702.5 185.1 702.5 185.1 246.1

1) Excluded restricted cash2) Included cash received from Morpol-aquisition: NOK 275.9 million

Q3|2013


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

2013

NOK million

Share capital

Share premium reserve

Other equity reserves

Retained earnings

Total

Equity 01.01.2013 2 811.3 779.0 - 692.8 8 722.2 11 619.7 69.0 11 688.7

Comprehensive income

Profit 1 221.1 1 221.1 9.8 1 230.9Other comprehensive income 499.7 7.3 507.0 3.7 510.7

Transactions with owners

Acquisition of non-controlling interest 0.0 -74.1 -74.1

Non-controlling interest arising on a business combination 0.0 294.5 294.5

Share based payment expense 2.6 2.6 2.6

Transactions with treasury shares 0.2 0.2 0.2

Dividends -562.2 - 562.2 -562.2

Total equity 30.09.2013 2 811.3 779.0 - 190.5 9 388.6 12 788.4 302.9 13 091.3

2012

NOK million

Share capital

Share premium reserve

Other equity reserves

Retained earnings

Total

Equity 01.01.2012 2 685.9 54.9 - 264.6 8 290.2 10 766.4 75.8 10 842.2

Comprehensive income

Profit 408.5 408.5 4.1 412.6Other comprehensive income -428.2 23.5 - 404.7 -4.0 -408.7

Transactions with owners

Issue of shares 125.4 724.1 849.5 849.5

Acquisition of non-controlling interest 0.0 -6.9 -6.9

Total equity 31.12.2012 2 811.3 779.0 - 692.8 8 722.2 11 619.7 69.0 11 688.7

Other equity reserves consists of cash low hegde reserve, interest swap hedge reserve and foreign currency transation reserve.

For further information related to share capital, reference is made to note 11.

Q3|2013

Attributable to owners of Marine Harvest ASA

Attributable to owners of Marine Harvest ASA

Non-controlling interests

Total equity

Non-controlling interests

Total equity


03|2013

SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS

Note 1 GENERAL INFORMATION

Marine Harvest (the Group) consists of Marine Harvest ASA and its subsidiaries, including the Group’s interests in associated companies.

This interim report has not been subject to any external audit.

These interim financial statements are prepared in accordance with International Financial Reporting Standards and interpretations (IFRS), as issued by the International Accounting Standards Board (IASB) and as adopted by EU (EU-IFRS), including International Accounting Standard 34, Interim Financial Reporting. The quarterly report does not include all information and disclosures required in the annual financial statements and should be read in conjunction with the 2012 Annual Report.

Note 2 ACCOUNTING PRINCIPLES

All significant accounting principles applied in the consolidated financial statement are described in the Annual Report 2012. In 2013 the Group will in addition apply IAS 23 Borrowing costs related to the building of the Fish Feed Factory.

The Group has changed the principle for recognition of interest rate swaps considered to qualify for hedge accounting. The change in fair value of swaps qualifying for hedge accounting will, starting in 2013, be recognised as other comprehensive income and not as other financial items. The change in fair value of interest rate swaps which, following evaluation, do not qualify for hedge accounting, will be recognised as other financial items. The realised gains or losses will affect profit and loss as an adjustment

to the interest expense.

New standards and amendments adopted by the Group in 2013:

*Amendments to IAS 1 – Presentation of financial statements: Presentation of groups of items in other comprehensive income (OCI) based on whether the items can be reclassified (or recycled) to profit or loss at a future point in time. The amendment affects presentation only. *Amendments to IAS 19 – Employee benefits: The impact for the Group will be that all actuarial gains and losses will be recognised in OCI and not in profit or loss. As defined benefit plans not are material for the Group, these changes will be recognised in the fourth quarter only. *IFRS 13 – Fair value measurement: IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. The application of IFRS 13 has not impacted the fair value measurements carried out by the Group. Extended disclosures are included for shares in Morpol ASA (note 7), biological assets (note 5) and Convertible bonds (note 9).

Note 3 ESTIMATES AND RISK EXPOSURE

The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting principles and recognised amounts of assets, liabilities, income and expenses. The most significant estimates relate to the valuation of biological assets and some financial instruments, which are measured at fair value. Estimates and underlying assumptions are reviewed on an ongoing basis, and are based on the management’s best assessment at the time of reporting. All changes in estimates are reflected in the financial statements as they occur. The accounting estimates are described in Note 3 to the financial statements in the 2012 Annual Report.

Marine Harvest is exposed to a number of operational and financial risk factors. The main operational risk factors are the development in the salmon price, biological risk linked to the salmon farming operations, the development in the salmon feed prices and feed utilisation and regulatory risk. Financially, the main risk factors are linked to general fluctuations in interest rates and exchange rates, credit risk and liquidity risk.

All risk factors are described in the 2012 Annual Report.

Note 4 BUSINESS SEGMENTS

Marine Harvest is organised in two business areas, Sales and Marketing and Farming. Fish Feed production will be a separate business area, but the operational activity has not yet started.

The performance of the Farming and Sales and Marketing business areas are monitored to reach the overall objective of maximising the Operational EBIT per kg. Consequently, external reporting will be focused towards measuring and illustrating the overall profitability of harvested volume based on source of origin (Operational EBIT/kg).

The same accounting principles as described for the Group financial statements have been applied for the segment reporting. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions, and the measurement used in the segment reporting is the same as used for the actual transactions.


NOTES TO INTERIM FINANCIAL STATEMENTSNote 4 BUSINESS SEGMENTS (continued)

BUSINESS AREAS Farming Other TOTAL

NOK million

MH Markets

MH VAP Europe

Q3. 13External revenue 81.7 3 193.2 1 018.5 13.5 0.0 4 306.9Internal revenue 2 965.9 437.3 15.3 48.8 -3 467.3 0.0Operational revenue 3 047.6 3 630.5 1 033.8 62.3 -3 467.3 4 306.9Change in unrealised salmon derivatives 0.0 0.0 0.0 - 3.3 0.0 - 3.3

Revenue in profit and loss 3 047.6 3 630.5 1 033.8 59.0 -3 467.3 4 303.6

Operational EBITDA 866.8 115.9 9.1 - 18.5 0.0 973.3

Operational EBIT 711.8 112.0 - 10.5 - 20.7 792.6Change in unrealised salmon derivatives 0.0 0.0 0.0 - 3.3 - 3.3Fair value adjustment on biological assets - 114.7 0.0 0.0 2.1 - 112.6Onerous contracts provision 116.7 0.0 0.0 0.0 116.7Restructuring cost - 0.5 0.0 0.0 0.0 - 0.5Income from associated companies 48.3 0.0 0.0 0.0 48.3Impairment losses - 4.7 0.0 - 0.5 0.0 - 5.2

EBIT 756.8 112.0 - 11.0 - 21.9 835.9

Q3. 12External revenue 85.3 2 626.9 911.3 23.3 0.0 3 646.8Internal revenue 2 414.9 406.2 0.2 7.7 -2 829.0 0.0Operational revenue 2 500.2 3 033.1 911.5 31.0 -2 829.0 3 646.8Change in unrealised salmon derivatives 0.0 0.0 0.0 - 13.5 0.0 - 13.5

Revenue in profit and loss 2 500.2 3 033.1 911.5 17.6 -2 829.0 3 633.3

Operational EBITDA 172.0 85.2 18.3 - 34.5 0.0 241.1

Operational EBIT 27.6 82.2 - 0.1 - 36.5 73.3Change in unrealised salmon derivatives 0.0 0.0 0.0 - 13.5 - 13.5Fair value adjustment on biological assets - 81.2 0.0 0.0 - 3.9 - 85.1Onerous contracts provision - 0.3 0.0 0.0 0.0 - 0.3Restructuring cost - 0.8 0.0 0.0 0.0 - 0.8Income from associated companies 27.4 0.0 2.9 0.0 30.3Impairment losses - 1.4 0.0 - 1.1 0.0 - 2.5

EBIT - 28.7 82.2 1.8 - 53.9 1.4

YTD Q3. 13External revenue 220.3 9 270.0 2 956.8 39.8 0.0 12 486.9Internal revenue 8 509.0 1 274.3 27.0 61.2 -9 871.5 0.0Operational revenue 8 729.3 10 544.3 2 983.8 101.0 -9 871.5 12 486.9Change in unrealised salmon derivatives 0.0 0.0 0.0 - 17.7 0.0 - 17.7


Operational EBITDA 2 527.2 251.9 35.3 - 110.9 0.0 2 703.4

Operational EBIT 2 073.6 241.1 - 21.1 - 117.7 2 175.8Change in unrealised salmon derivatives 0.0 0.0 0.0 - 17.7 - 17.7Fair value adjustment on biological assets 668.8 0.0 0.0 1.7 670.6Onerous contracts provision 17.6 0.0 0.0 0.0 17.6Restructuring cost - 0.5 - 32.7 - 205.1 0.0 - 238.4Other non-operational items - 74.4 0.0 0.0 0.0 - 74.4Income from associated companies 105.4 0.0 0.0 0.0 105.4Impairment losses - 3.7 - 3.5 - 0.5 - 0.2 - 7.9

EBIT 2 786.8 204.9 - 226.7 - 133.9 2 631.0

YTD Q3. 12External revenue 286.6 8 351.5 2 793.9 66.0 0.0 11 498.0Internal revenue 7 600.9 1 117.9 10.0 38.7 -8 767.6 0.0Operational revenue 7 887.5 9 469.4 2 803.9 104.7 -8 767.6 11 498.0Change in unrealised salmon derivatives 0.0 0.0 0.0 - 86.8 0.0 - 86.8


Operational EBITDA 829.3 283.5 44.2 - 70.8 0.0 1 086.2

Operational EBIT 392.8 274.8 - 10.5 - 77.3 579.9Change in unrealised salmon derivatives 0.0 0.0 0.0 - 86.8 - 86.8Fair value adjustment on biological assets - 46.1 0.0 0.0 - 5.5 - 51.5Onerous contracts provision 18.7 0.0 0.0 0.0 18.7Restructuring cost - 0.8 0.0 0.0 0.0 - 0.8Income from associated companies 55.0 0.0 2.9 0.0 57.9Impairment losses - 2.1 0.0 - 1.6 0.0 - 3.7

EBIT 417.6 274.8 - 9.2 - 169.5 513.7

Q3|2013

Elimina-

tions 1)

Sales and Marketing


Note 5 SPECIFICATIONS OF BIOLOGICAL ASSETS

NOK million

MH Norway

MH Scotland

MHCanada

MHChile Morpol Other TOTAL

Q3. 2013 - 20.7 - 46.2 - 29.8 7.9 - 23.8 - 112.6Q3. 2012 198.7 - 68.0 - 109.8 - 68.0 - 38.0 - 85.1YTD Q3. 2013 243.6 84.7 195.2 128.3 18.8 670.6YTD Q3. 2012 278.8 - 149.2 - 64.3 - 90.1 - 26.7 - 51.52012 495.0 - 11.5 - 23.2 - 74.8 - 35.3 350.2

30.09.2013 Marine Harvest 249.7

30.09.2013 Morpol - continued operations 10.9

30.06.2013 201.5

31.12.2012 240.6

30.09.2013

Fair value adjustment on biological assets 944.9 259.9 177.4 88.4 63.1 51.8 1 585.4Biomass at cost 6 569.7

Biological assets 8 155.1

30.06.2013

Fair value adjustment on biological assets 965.6 291.2 213.4 82.7 77.0 1 630.0Biomass at cost 5 413.7


31.12.2012

Fair value adjustment on biological assets 701.3 160.4 - 16.0 - 40.8 30.9 835.7Biomass at cost 5 372.1


Change in carrying amount of biological assets

Carrying amount 1.7.2013 7 043.7

Purchases 2 659.6

Change in fair value - 112.6

Mortality for fish in sea - 52.2

Cost of harvested fish -1 770.4

Assets aquired from Morpol - continued operations 338.9

Currency translation differences 48.0

Carrying amount 30.09.2013 8 155.1

Price sensitivities effect on fair value - (salmon only)

197.3 27.8 26.0 44.3 14.6 12.3 322.3

Note 6 EXCEPTIONAL ITEMS

NOK million

Exceptional items Q1. 13 Q2. 13 Q3. 13 YTD Q3. 13Sea lice mitigation in MH Norway 30.4 29.7 32.0 92.1Exceptional mortality in MH Norway 1.8 4.3 8.9 15.0Discards and claims from Kudoa in MH Canada 6.1 4.4 4.0 14.5Mortality in MH Chile 3.0 7.8 6.8 17.6Exceptional mortality in MH Ireland 32.7 32.7

Exceptional items in operational EBIT 41.3 46.2 84.4 171.9

Q3|2013

Biological assets are, in accordance with IAS 41, measured at fair value, unless the fair value cannot be measured reliably. Broodstock, smolt and live fish below 1 kg are measured at cost less impairment losses, as the fair value cannot be measured reliably.

Biomass beyond this is measured at fair value in accordance with IFRS 13, and the measurement is categorised into Level 3 in the fair value hierarchy, as the input is unobservable input. Live fish over 4 kg are measured to full net value, while a proportionate expected net profit at harvest is incorporated for live fish between 1 kg and 4 kg. The valuation is completed for each business unit based on a model and basis for assumptions supplied by corporate. All assumptions are subject to quality assurance and analysis on a monthly basis from a corporate level.

NOTES TO INTERIM FINANCIAL STATEMENTS

Biomass in sea (1 000 tonnes)

The note summarises elements affecting Operasjonell EBIT in the Statement of comprehensive income that management considers exceptional relative to the underlying operations. The elements for the current quarter is commented on in the chapters for each operating unit.

The valuation is based on an income approach and takes into consideration unobservable input based on biomass in sea for each sea water site, estimated growth rate on site level, mortality in the business unit, quality of the fish going forward, costs and market price. Special assessment is performed for sites with high/low performance due to disease or other special factors. The market prices are set for each business unit, and are derived from observable market prices (when available), achieved prices and development in contract prices.

Fair value of biological assets in financial position

Fair value adjustment on biological assets in profit and loss

The sensitivities are calculated based on a NOK 2 increase of the price in all markets (fish between 1-4 kg is measured proportonately based on their level of completion).


Note 7 SHARES IN MORPOL ASA and ASSETS HELD FOR SALE

NOK million

Provisional fair value Licenses 448.7 Other intangible assets 266.2 Property, plant and equipment 1 215.4 Inventories and biological assets 648.2 Other assets 702.0 Cash and cash equivalents 276.9 Long-term interest bearing debt -18.2 Short-term interest bearing debt -1 939.8 Other liabilities -537.8

Total identifiable net assets 1 061.6 Assets held for sale, net 809.1 Non-controlling interests -294.7

Goodwill 106.7

Cash consideration 1 682.7

Note 8 FINANCIAL ITEMS

NOK million Note

Q3. 13 Q3. 12 YTD Q3. 13 YTD Q3. 12 2012

Interest expense -166.3 -92.0 -445.6 -281.8 -382.8

Currency effects on interest-bearing debt -139.5 54.3 -415.4 206.3 206.9Currency effects bank, trade receivables and trade payables 13.7 13.5 68.0 -34.7 1.5Gain/loss on short-term transaction hedges 8.4 11.1 1.5 29.8 38.8Realised gain/loss on long-term cash flow hedges 11.7 75.3 60.7 198.9 276.1

Net currency effects -105.6 154.2 -285.2 400.2 523.3

Interest income 6.6 2.0 15.2 7.5 -0.9Gain/loss on salmon derivatives 0.8 0.0 3.3 0.0 0.0Change in fair value of financial instruments 2.9 -65.6 -30.0 -156.6 -145.0Change in fair value conversion liability components 9 -30.0 -68.6 -218.7 -219.8 -305.3Change in fair value other shares 12.9 -31.4 11.8 12.8 3.8Dividends and gain/loss on sale of other shares 0.1 3.6 133.4 3.8 135.6Net other financial items -0.4 -2.4 -3.8 -4.0 -8.2

Other financial items -7.1 -162.5 -88.8 -356.2 -320.0

Total financial items -279.0 -100.3 -819.6 -237.8 -179.5

Q3|2013

In December 2012 Marine Harvest ASA acquired 48.5% of the shares in Morpol ASA at NOK 11.50 per share. In January 2013 Marine Harvest ASA submitted a mandatory offer for the remaining shares in Morpol ASA at NOK 11.50 per share. The result of the offer was that Marine Harvest ASA acquired additional 38.6% of the shares in Morpol ASA. The total ownership in Morpol ASA is 87.1% at a total purchase price of NOK 1 683 million.


Morpol ASA is listed on the Oslo Stock Exchange and is a world leader in value added processing. The purchase of Morpol is in line with the Marine Harvest’s strategy of forming a world leading integrated protein group. The Morpol acquisition will further strengthen the Group’s capacity for processed salmon products in several markets where Marine Harvest previously not has been very active.

Morpol’s subsidiaries relating to farming of other species than salmon, in Belize and Vietnam, will be sold no later than 2 months after the approval of the transaction by the European commission. These assets are classified as “Assets/Liabilities held for sale” in Marine Harvests consolidated financial position as of 30 September 2013, and are measured at fair value.

As remedies for the Competition approval of the purchase, Marine Harvest has agreed to divest the farming capacity in Shetland (11 000 tonnes) and Orkney Islands (7 000 tonnes). Furthermore, the company has agreed to divest freshwater capacity and primary processing plants in the same areas. These assets and related liabilities are classified as “Assets held for sale” in Marine Harvests consolidated financial position as of 30 September 2013. The assets and liabilities are measured at carrying amount, which is considered to be an approximation to fair value less cost to sell.

On 30 September 2013 the acquisition was approved by the competition authorities in EU. The approval from the Anti-monopoly committee in Ukraine is still pending, but given that Morpol historically has not been active in Ukraine, a right to consummate the transaction has been granted subject to certain terms. Marine Harvest has therefore consolidated Morpol ASA into the Marine Harvest Group as of 30 September 2013.

A preliminary purchase price allocation has been carried out. The initial accounting is not yet completed, and the fair value of assets acquired and liabilities assumed are provisional, and will be further evaluated. The provisional aggregated goodwill of NOK 107 million recognised arises from a number of factors such as expected synergies through combining highly skilled workforces, obtaining economies of scale and of forming a world leading integrated protein group.

The table below summarises the consideration paid for Morpol ASA, and the preliminary assessed fair value of the assets acquired and liabilities assumed, recognised at the acquisition date 30 September 2013.

Acquisition-related costs of NOK 12.2 million have been recognised as other operating expenses in the consolidated statement of comprehensive income.

If Morpol ASA had been consolidated from 1 January 2013, the consolidated statement of comprehensive income for the nine months ended 30 September 2013 would show pro-forma revenue of NOK 15 485 million and pro-forma profit of NOK 1 203 million, inclusive discontinued operations.

Recognised amounts of identifiable assets required and liabilities assumed



Note 9 CONVERTIBLE BONDS

NOK million

Initial recognition 2010-bond - EUR 225 mill 1 541.3 259.72013-bond - EUR 350 mill 2 267.1 378.0

Subsequent measurementInterest and currency effects -8.9 - 356.3 146.7Change in fair value of conversion liability component 69.8 - 69.8

Net recognised 2010 - 2012 - 356.3 146.7 - 69.8

Recognised 2013Q1 and Q2 2013Interest and currency effects 216.1 -91.0 - 176.4Change in fair value of conversion liability component 179.6 9.2 - 188.8

Q3.2013Redeemed bond - 0.8 - 0.2Coupon interest - 42.6Amortised interest 33.7 - 33.7Currency effects 112.2 - 112.2Change in fair value of conversion liability components 18.6 11.3 - 29.9

Net recognised end of period 2013 4 160.7 527.5 398.5 - 167.3 - 288.6 - 218.7

NOK million 2010-bond 2013-bond

A 10% increase in share price 713.6 516.5 A 10% increase in exchange rate EUR/NOK 412.8 333.8 A 0.50% point increase in risk free interest rate 536.2 415.1

Note 10 EARNINGS PER SHARE

Basic Earnings per share (EPS) is calculated on the weighted average number of shares outstanding during the period.

Note 11 SHARE CAPITAL No of shares NOK million Share capital

Share CapitalIssued at the beginning of 2013 3 748 341 597 2 811.3 779.0

Share capital end of period 3 748 341 597 2 811.3 779.0

CostTreasury SharesTreasury shares at the beginning of 2013 409 698 2.8

Treasury shares end of period 409 698 2.8

Sensitivity analyses conversion liability components:

Share premium reseve

Subsequent to initial recognition the conversion liability components are measured at fair value in accordance with IFRS 13. The measurement is categorised into Level 3 in the fair value hierachy, as some input is unobservable. The valuations are performed using Black-Scholes valuation model for option valuation, with quoted prices for share value, exchange rate and risk free interest rate, and unobservable input for volatility.

Q3|2013

The equity conversion option on the 2013 convertible bond was not "in the money" at the end of the reporting period, and a dilution effect has not calculated.

Marine Harvest ASA issued a EUR 350 million convertible bond 1 May 2013, with a coupon interest of 2.375%. The bond matures in 2018 at the nominal value of EUR 350 million or can be converted into shares at the holder's option. The value of the debt liability component and conversion liability component were determined at issuance of the bond. The fair value of the debt liability component was calculated using a market interest rate for an equivalent, non-convertible bond. The residual amount was the fair value of the conversion liability component at initial recognition.

Statement of financial positionOther

financial items

Statement of comprehensive incomeNon-current

interest-bearing debt

Conversion liability

2013-bond

Interest expenses

Net currency

effects

Conversion liability

2010-bond

The carrying amounts of the debt liaibility component of the convertible bonds are classified as non-current interest-bearing debt, and the conversion liability components are classified as other non-current interest-free liabilities in the statement of financial position. All profit and loss elements related to the convertible bonds, are included in the specification of financial items in note 8.

Convertible bonds that are “in the money” are considered to have a dilutive effect if EPS is reduced when assuming a full conversion into shares at the beginning of the period and reversing all its effects on earnings for the period. On the other hand, if the effect of the above increases EPS, the bond is considered anti-dilutive, and is then not included in diluted EPS. The adjustments to earnings are interest expenses, currency gains/losses and changes in fair value of equity conversion option, adjusted for estimated taxes.

The equity conversion option on the 2010 convertible bond was "in the money" at the end of the reporting period, but the effect on EPS was anti-dilutive, and the convertible bond is therefore not included in diluted EPS.



Note 12 SHAREHOLDERS

Overview of the major shareholders at 30.09.2013

Name of shareholder No. of shares %

Geveran Trading CO LTD 920 481 234 24.56 %

Folketrygdfondet 337 087 688 8.99 %

Lansdowne Developed Markets Master 127 043 913 3.39 %

Geveran Trading CO LTD 123 480 400 3.29 %

Morgan Stanley & CO Internat. PLC 118 961 578 3.17 %

Clearstream Banking S.A. 105 516 056 2.82 %

State Street Bank and Trust CO . 95 017 509 2.53 %

The Bank of New York Mellon SA/NVT 52 166 748 1.39 %

State Street Bank and Trust CO 50 153 331 1.34 %

DNB NOR Bank ASA 48 347 648 1.29 %

Verdipapirfondet DNB Norge (IV) 42 113 044 1.12 %

Varma Mutual Pension Insurance 39 400 000 1.05 %

State Street Bank and Trust CO . 37 004 807 0.99 %

Statoil Pensjon 36 695 509 0.98 %

Verdipapirfondet DNB Norge Selektiv 32 305 983 0.86 %

Danske Invest Norske Instit.II. 32 036 466 0.85 %

Skandinaviska Enskilda Banken AB 31 395 247 0.84 %

JPMorgan Chase Bank N.A. London 30 139 112 0.80 %

West Coast Invest AS 30 012 000 0.80 %

The Bank of New York Mellon 26 146 179 0.70 %

Total 20 largest shareholders 2 315 504 452 61.77 %

Total other 1 432 837 145 38.23 %

Total number of shares 3 748 341 597 100.00 %

Note 13 SHARE PRICE DEVELOPMENT

Share price development at Oslo Stock Exchange (ticker MHG)

Q3|2013

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

0

10000

20000

30000

40000

50000

60000

01.0

7.13

10.0

7.13

19.0

7.13

30.0

7.13

08.0

8.13

19.0

8.13

28.0

8.13

06.0

9.13

17.0

9.13

Totalvolume(1000)

Last

Geveran Trading CO Ltd, which is indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family, has purchased 9 110 312 shares at a price of NOK 6.1844 per share 22.07.2013, 19 688 020 shares at a price of NOK 5.9725 per share 29.07.2013, 30 000 000 shares at a price of NOK 5.9086 per share 22.08.2013, 20 000 000 shares at a price of NOK 5.6979 per share 29.08.2013, 5 000 000 shares at a price of NOK 5.7967 per share 05.09.2013 and 16 500 000 shares at a price of NOK 5.9195 per share 11.09.2013. Geveran Trading's affiliated ownership in Marine Harvest ASA is following these transactions 1 173 531 634 shares , constituting 31.31 percent of the issued share capital.

In addition Geveran Trading Co LTD has TRS agreements relating to 70 million shares in Marine Harvest ASA. The expiration of the TRS agreements is 20.01.2014. The exercise price on the agreements is NOK 7.0258 per share.


NOTES

Q3|2013


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