Marine Harvest ASA 2009 Annual Report by AnnualReports

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KEY FIGURES                                                                                  2009                         2008                           2007

Revenue and other income (NOK million)                                                   14 500.2                 13 486.9                        14 091.5
Harvest volume of salmonids (HOG). tons                                                   327 100                 326 864                         339 848

Operational EBITDA (NOK million)                                                          2 193.8                   1 298.8                        1 476.1
Operational EBIT (NOK million)                                                            1 506.1                      613.6                        684.3
Operational EBT (NOK million)                                                             1 832.4                   -1 167.9                        639.6
Profit or loss for the year (NOK million)                                                 1 302.2                  -2 852.0                            5.1

Operational EBITDA margin                                                                 15.1 %                         9.6%                       10.5%
Operational EBIT margin                                                                   10.4 %                         4.5%                        4.9%

Total assets (NOK million)                                                           20 389.3                     22 736.4                        23 183.0
Net interest-bearing debt (NOK million)                                               5 075.0                      7 740.6                         6 743.5
Total equity (NOK million)                                                           11 460.5                      9 624.6                        12 484.0
Equity %                                                                              56.2 %                        42.3%                           53.8%

Cash flow from operations (NOK million)                                                   2 375.8                      1 498.6                      973.0

Earnings per share (NOK) - basic and diluted                                                0.37                         -0.82                       0.00

Share price (high)                                                                           4.82                         4.26                        8.30
Share price (low)                                                                            1.05                         0.97                        2.95
Share price at year-end                                                                      4.23                         1.05                        3.49
Number of shares at year-end (million)                                                    3 574.9                      3 478.9                     3 478.9
Market value (cap) at year-end (NOK million)                                             15 121.8                      3 652.8                    12 141.4

Number of employees at year-end                                                            4 947                        7 071                       8 736

REvENUE ANd OThER INCOME                           OPERATIONAL EBIT                                      EQUITY %
(NOK MIllION)                                      (NOK MIllION)

09                                      14 500.2   09                                          1 506.1   09                                         56.2%

08                                    13 486.9     08                    613.6                           08                                42.3%

07                                     14 091.5    07                     684.3                          07                                        53.8%
     0   3000   6000   9000   12000   15000             0   300    600      900   1200      1500              0   10      20     30   40     50     60

                                                                                    Key figures                   0
                                                                                    Main events                   1
                                                                                    Letter to the sharehoLders    2
                                                                                    guiding principLes            4
                                                                                    Board of directors report     6
                                                                                    Board of directors           16
                                                                                    financiaL stateMents group   20
                                                                                    notes group                  26
                                                                                    financiaL stateMents asa     64
                                                                                    notes asa                    69
                                                                                    confirMation                 78
                                                                                    auditor’s report             79
                                                                                    addresses                    80

Main events
Strong demand                          Harvest volume                              Cash dividend proposed
Strong underlying demand and a         327 000 tons gutted weight                  The Board has proposed a cash
tight global supply resulted in a      harvested in 2009, unchanged from           dividend of NOK 0.35 per share for
solid market for salmon in 2009.       the 2008 level. A strong increase in        2009.
                                       Norway compensated for the drop
                                       in Chile.
Solid financial position                                                           Guiding principles
NOK 302 million was raised as new                                                  In 2009, Marine Harvest launched
equity in May. Net interest-bearing                                                guiding principles setting the
debt was reduced by close to NOK
                                       Share price development                     standards and ambitions with
2.7 billion during 2009 and the                                                    regards to Profit, People, Product
equity ratio increased from 43.2%      2009 (noK)                                  and Planet.
to 56.2%.                               5.0



Chile                                   2.0
Update of business plan in the
second quarter resulted in write-
downs and provisions of NOK 727         0.0

million. Operations downscaled to             31.12.08                  31.12.09

a minimum activity level, biological               Marine Harvest ASA
development looks promising.                       OSEBX

    Marine harvest

    Dear shareholder
                                                                                      2.2 million smolt in 2009 and expect to stock a maximum of 6.4 million
                                                                                      smolt in 2010.

                                                                                      During the last part of 2009 and early 2010, we have seen a significantly
                                                                                      improved biological development in Chile, with low mortality and good
                                                                                      growth. Permanent improvements in biological results and an improved
                                                                                      regulatory framework are prerequisites for new investments in Chile. As
                                                                                      we gradually rebuild our operations in Chile, we will start from a lower cost
                                                                                      base and targeting a more cost-efficient and professional organization,
                                                                                      meeting all our global quality standards.

                                                                                      reducing BioLogicaL risKs
    Marine Harvest achieved a net profit of NOK 1 302
                                                                                      Salmon farming has historically been, and still is, subject to biological
    million in 2009, a significant improvement compared to                            challenges. Through improved regulations, some of these challenges have
    a net loss of NOK 2 852 million in 2008. The improved                             been dampened, and biological risks have been reduced in key farming
    profitability was matched by a significantly stronger                             regions. There is, however, still room for further reduction in biological
    cash flow, a considerable reduction in net interest-                              risks. Infectious Salmon Anemia (ISA) in Chile, Pancreas Disease (PD)
    bearing debt and a substantial increase in our equity                             and sea lice mitigation are the main biological challenges affecting the
    ratio. Based on this development, the Board of Directors                          industry today. Marine Harvest addresses these issues with a broad mix of
    of Marine Harvest ASA (the Board) has proposed a                                  initiatives. Internally, we improve our husbandry and mitigation efforts, and
    dividend of NOK 0.35 per share.                                                   invest in research and development (R&D) projects. In cooperation with our
                                                                                      colleagues and competitors, we implement common area-based mitigation
    We achieved these results after getting operational control in Chile, and         efforts and measures to reduce the risk of spreading infective agents and
    to a large part, because of a strong demand for salmon in key markets             resistant sea lice.
    combined with a tight global supply situation. In addition to this, we achieved
    operational improvements in Scotland, Norway and in VAP Europe.                   We believe these initiatives will have a long-term, significant and positive
                                                                                      impact on profitability and sustainability.
    The overall improvements in Marine Harvest’s global operations are
    promising, but there is still room for further improvements and increased         guiding principLes
    profitability. We would like to use this opportunity to highlight some of the     Our vision is “Seafood for a better life”, implying that our business should
    areas we will focus on in the further development of Marine Harvest.              lead to a better life for everyone. To guide us in our journey towards this
                                                                                      vision through major strategic decisions and smaller day-to-day operational
    iMproved profitaBiLity and growth in norway                                       decisions, we have established four guiding principles setting our standards
    In the beginning of 2010, Marine Harvest Norway embarked on a three               regarding Profit, People, Product and Planet.
    year program to improve the freshwater operations. Through this program
    we will invest in both new and current freshwater sites, with the aim of          With regards to Profit, our ambitions are centered around three main areas
    reducing smolt costs, improving smolt quality and securing larger smolt           – profitability, relative competitiveness and solidity. Marine Harvest should
    stocking flexibility by producing more diverse sizes of smolt.                    be the most profitable listed farming company over a cycle (4-5 years). We
                                                                                      acknowledge that we were behind some of our competitors in 2009, but
    The Norwegian salmon farming industry has limited potential for growth            continue our step-by-step approach to reach our targets.
    with the current number of licenses and the regulatory framework for
    Maximum Allowable Biomass (MAB). Fortunately, Marine Harvest Norway               Increased focus on People has contributed to improvements compared to
    has the potential to increase production within this framework. Hence, we         previous years, but we are still far from reaching our ambitions. When it
    have decided to increase smolt stocking in Norway by 10 percent in 2010,          comes to employee safety, our ambition is that Marine Harvest should be
    to secure growth in 2011 and into 2012. We are also exploring the potential       the safest actor in our sector.
    for increased production within current MAB regulation by increasing the
    smolt size to reduce the grow-out time in sea-water, and hence increase           Our Product ambitions are split into two categories: Food quality and
    output per license.                                                               safety, and customer value. Marine Harvest wants to be the preferred
                                                                                      partner for our major customers through creation of customer value, quality
    reBuiLding operations in chiLe                                                    and documented safety.
    Our operations in Chile have been downscaled to a minimum activity level.
    The process has been painful for everyone involved. In 2010, we expect to         When it comes to Planet, our ambitions centers around three key areas;
    sell only 4 000 tons of salmon from Chile, whereas we stocked a meager            feed sustainability, environmental impact and fish health. A common

2   ANNUAl rePOrT 2009
denominator for our planet ambitions is sustainable development.                Marine Harvest has been leading this development through investments
                                                                                in processing capacity in the US for pre-rigor fillets from Norway. We have
The four guiding principles are highly interrelated and, in the long-term, we   also doubled our filleting capacity in Norway with significant and positive
will have to follow all four principles to develop our business in accordance   effects on transport costs, carbon footprint and our ability to exploit
with our vision. During 2009, we also raised the bar for personal conduct       trimmings through production of by-products.
by developing a new Group-wide code of conduct. This document will be
distributed to every employee, followed up by e-learning and management         positive outLooK for 2010
presentations.                                                                  2009 was a good year for Marine Harvest. With a strong market for salmon
                                                                                and gradual improvements across business units, we have good reasons to
a gLoBaL MarKet for saLMon                                                      be optimistic about the results also in 2010.
The global market for Atlantic salmon saw a major shift during 2009 as the
reduced supply from Chile to the US, EU and Asian markets was partly            Marine Harvest’s ambition is to become the leading global seafood
compensated by supply from other regions. We now see clear signs of a           company. After the three party merger in 2006, focus has been on the
global market for salmon, both through rather quick shifts in supply patterns   daily operational challenges. Further improvement of the operational
and changes to pricing between regions.                                         performance will be the main priority in 2010.

    Marine harvest

    Marine Harvest’s guiding principles
    and ambitions

                          profit                 people
                     Attractive                  Safe and
               financial results                 meaningful jobs

                      product                    planet
                     Tasty and                   Sustainable and
              healthy seafood                    environmentally
           providing customer                    responsible
                         value                   development

4   ANNUAl rePOrT 2009
During 2009 Marine Harvest developed the 4 P’s – a                                 - The principles and ambitions are embedded in the budget process
framework for the Group’s principles with regards to:                                 and drive performance
                                                                                   - The Group’s risk assessment and internal control processes will
Profit:       Attractive financial result                                             be linked to the Group’s ambitions, plans and risks with regard to
                                                                                      reaching the targets
People:       Safe and meaningful jobs
                                                                                   Through the established group-wide quality program, Qmarine, Marine
Product: Tasty and healthy seafood providing                                       Harvest continuously develops and implements procedures to improve
         customer value                                                            operational efficiency and effectiveness, increase quality and reduce
                                                                                   risks. Introduction of the four guiding principles gives an overall strategic
Planet:       Sustainable and environmentally                                      perspective and stricter priority to the continuous improvement efforts
              responsible development                                              already ongoing through the work with Qmarine.

To each of the principles there are stated ambitions that will serve               By integration of the principles in the business processes, Marine
different purposes:                                                                Harvest will in a systematic way secure that the principles contribute to
- The ambitions will determine the target setting with regard to                   the development of the Company as the leading seafood company and
  performance throughout the organization. 2010 will be the first year             add to value creation.
  where this system is rolled out in a systematic manner
                                                                                   The guiding principles are split into the following ambitions:

                          guiding principle                                    ambitions                                      2010 priorities
                                                                Deliver a ROACE of at least 10% over a             Improve cost structure, optimize market
                 profitability                                  cycle (4-5 yrs)                                    strategies and CAPEX prioritization

                                                                Be the most profitable listed farming              Develop business portfolio, secure sound
                 relative competitiveness                       company over a cycle                               rebuilding of operations in Chile
                                                                                                                   Improve capital structure, secure new long
  profit         solidity                                       NIBD/Equity ratio below 0.5
                                                                                                                   term financing
                                                                                                                   Harmonize reporting, implement Safety
                 employee safety                                Be the safest in the sector                        Management Principles and reduce injury
                                                                                                                   frequency rate by 50% for the Group
                                                                A culture supporting development of                Best practice networks in selected areas
                 culture                                        employees and driving Group wide best              and develop training programs for Chilean
  people                                                        practice                                           employees for the rebuilding
                                                                Supply seafood with valuable health                Secure the best product control in the
                 food quality and safety                        benefits, preferred for quality and                industry, establish and document levels of
                                                                documented safety                                  omega-3 fatty acids in the product
                                                                Be the preferred supplier that exceeds
                                                                                                                   Implement supply chain integration with
                 customer value                                 customers expectations based on product
  product                                                       knowledge and supply chain expertise

                                                                Only use marine feed ingredients certified         Reduce dependency on marine protein raw
                 feed sustainability                            as sustainable and reduce dependency on            materials and document possibilities for
                                                                marine proteins                                    and implications of increased substitution

  planet                                                        Activities shall not leave lasting footprints in   Zero escapes and reduction in the use of
                 environmental impact                           the environment                                    antibiotics

                                                                                                                   Cooperation with authorities and the
                                                                Reduce risk of disease outbreaks and               industry, stop the spread of PD, control
                 fish health                                    implications                                       sealice and contribute to ISA-free
                                                                                                                   rebuilding of the Chilean industry

The ambitions will be followed up and performance reported in a systematic manner starting with the 2010 annual report.

    Marine harvest

    Board of
    Directors Report
                                                                                     During the first half of 2008, feed raw material prices rose to an
                                                                                     unprecedented high level due to supply shortage. Towards the end of 2008
    et år preget av utfordringer og fokus på langsiktig utvikling.                   prices started to decline - a development that continued into 2009 as the
                                                                                     prices for fishmeal and fish oil were reduced. Towards the end of 2009,
                                                                                     fishmeal prices started to rise again, but it is expected that the salmon feed
                                                                                     producers will be able to compensate for this increase through substitution
                                                                                     of raw materials during 2010.

                                                                                     During 2008, Marine Harvest’s Norwegian operation was challenged by
                                                                                     Pancreas Disease (PD) in 2 of its operating regions (South and West).
                                                                                     During 2008 and 2009, industry-wide PD mitigation initiatives were
                                                                                     implemented including changes in farming practices and vaccination. The
    Strong demand and favorable prices, combined
                                                                                     actions taken have proven successful and the number of outbreaks and
    with better operational performance, contributed to                              mortality related to PD dropped significantly in 2009 compared to 2008.
    improved operational eBIT compared to 2008 for all                               Unfortunately, PD was also diagnosed in Region Mid (Trøndelag) during
    business units.                                                                  2009. This is an area that previously has not been affected by this disease.
                                                                                     Emergency harvest was practiced and there has been no further spreading
    The Board would like to thank the employees for their                            of the disease from the area where it was originally diagnosed, to other
    efforts and contributions to this progress and towards                           parts of the region.
    making Marine Harvest a leading seafood company.
                                                                                     In 2009, the presence of sea lice attracted media attention in Norway
                                                                                     as the number of lice per fish in some regions increased compared to
                                                                                     previous years. Some spread of lice with reduced sensitivity or resistance
    strong MarKets, chiLe under controL and ManageaBLe                               to medication, was also registered within the Trøndelag and Nordland
    diseasesituation in norway                                                       counties of Norway. Use of hydrogen peroxide to delice exposed fish is
    Marine Harvest delivered significantly improved margins in 2009 as a             one of the measures that has demonstrated good efficiency. In cooperation
    result of strong demand and favorable prices, combined with improved             with the Norwegian industry and the authorities, Marine Harvest is working
    operational performance. The ISA situation in Chile remained challenging in      on several initiatives to handle this issue and the company has taken
    2009 and Marine Harvest regrets that more than 2 000 employees had to            preparatory actions, should the situation escalate. One major initiative
    leave the organization during the year as part of the restructuring process.     has been to start farming of ballan wrasse. The ballan wrasse has proven
    The downscaling of the operation resulted in restructuring costs and write-      effective in the effort to reduce the number of sea lice in salmon farming as
    downs of assets and inventory, all recognized during the year. The ISA           it preys on parasites of other fish. Marine Harvest would like to utilize this
    situation now seems under control.                                               lice mitigation tool better, as it reduces the need for medical treatments
                                                                                     and thus also the threat of developing reduced sensitivity and resistance
    Due to the substantial reduction in volume coming out of Chile and strong        to medication. The farmed ballan wrasse will be put to sea in 2011. In the
    demand, prices developed favorably during the year. The favorable market         meantime, Marine Harvest will rely on pharmaceutical measures and wild
    conditions were the main driver for the positive development in profit and       caught wrasse.
    cash flow. In the European market, prices increased by 11.0% to EUR 3.46
    per kilo in 2009 (Superior spot price FCA Oslo per kilo gutted weight). In the   Towards the end of 2009, the Board approved a new code of conduct
    US market, the price increase was also pronounced, as the lack of Chilean        for the Group. The code addresses what is considered proper behavior
    salmon only was partially compensated by fish from Europe. The prices in         by Marine Harvest employees in different situations in the everyday
    the US market increased by 10.2% during the year to USD 3.87 per lb in           operations. The code of conduct will be implemented in the organization
    Miami (UB 2-3 lb c-trim fillet). The favorable market conditions are expected    during 2010. The ambition of the implementation process is to create an
    to continue in 2010.                                                             organization of managers and employees that develop and produce results
                                                                                     in accordance with Marine Harvest’s strategy and values.
    In May, Marine Harvest successfully completed a private placement of
    96 million shares at a subscription price of NOK 3.15 per share. Gross           During 2009, the NOK appreciated significantly vs the Group’s main
    proceeds from the transaction amounted to NOK 302.4 million. The                 currencies EUR and USD. This put pressure on prices in NOK, but also
    purpose of the private placement was to finance the restructuring of the         contributed to a significantly improved financial position and the equity ratio
    Group’s operations in Chile, improve the financial position in general and       increasing from 42.3% to 56.2%.
    facilitate an agreement with the Group’s lenders to adjust the covenant
    structure in the Group’s loan agreements for the second, third and fourth
    quarter of 2009. Amendments to the covenants of the loan agreement
    were agreed with the banks in May.

6   ANNUAl rePOrT 2009
MarKet                                                                         1 506 million for 2009, up from NOK 614 million in 2008. Earnings before
Global harvest volume of Atlantic salmon was approximately 1 320               interest and taxes (EBIT) were NOK 1 334 million (NOK -1 480 million). The
thousand tons gutted weight in 2009, which constituted a drop of 1.8%          improvement is a consequence of substantial increase in profit and fair
compared to 2008.                                                              value adjustment on biological assets, combined with lower write-downs
                                                                               in Chile in 2009.
The drop in global harvest volume was driven by a 40.8% decrease
in Chilean volumes relative to 2008. The drop came as a result of the          financiaL iteMs
depletion of the Chilean industry’s biomass during 2008 and 2009 due to        Net financial items decreased substantially in 2009, and amounted to
the ISA disease. Harvest volume in Chile is expected to hit its lowest level   positive NOK 326 million compared to negative NOK 1 782 million in 2008.
in 2010. Harvest volume in Norway increased by 15.5% compared to 2008.         Currency effects related to appreciation of NOK towards EUR, USD and
The strong increase was due to exceptionally good growth conditions in the     GBP amounted to NOK 691 million (NOK -845 million), change in fair value
second half of 2009.                                                           interest swaps NOK 32 million (NOK -217 million) and change in fair value
                                                                               other shares NOK 18 million (NOK -194 million).
Due to strong demand and a tight global supply situation, prices in the
market currencies (EUR and USD) increased sharply relative to 2008. As a       financiaL position
result of currency movements, the prices translated into NOK increased at      Total assets were NOK 20 389 million at the end of 2009, a decrease of
an even higher rate.                                                           NOK 2 347 million compared to the beginning of the year. Total liabilities
                                                                               decreased with NOK 4 183 million during 2009 to NOK 8 929 million. Net
When including movements in inventories, volume distributed to the             interest-bearing debt decreased by NOK 2 666 million to NOK 5 075 million
markets totalled approximately 1 354 thousand tons gutted weight in 2009,      during 2009. This reduction was due to strong cash flow from operations, a
which constituted a growth of 2.6% relative to 2008. Supply into the EU        capital increase executed in May and appreciation of NOK towards the loan
market increased by 4.4% at a price increase in EUR of 11.0% (Superior         currencies. The currency impact on interest-bearing debt was NOK 1 000
spot price FCA Oslo, per kilo gutted weight). Supply into the US market        million in 2009.
was strongly influenced by the shortfall in harvest volumes from Chile.
Increased export from Europe to the US market partly compensated for           The equity ratio increased from 42.3% to 56.2% during 2009, due to an
this shortfall and the annual supply to the US market was down 4.8%            increase in equity and a decrease in debt. The increase in equity is a result
compared to 2008. This was a good indication of inelastic demand as            of net earnings of NOK 1 302 million; a capital increase of NOK 302 million;
the US reference prices were up between 10.2% (UB superior spot price          an increase in fair value of cash flow hedges after tax of NOK 947 million
Miami per lb 2-3 C-trim fillet) and 10.8% (UB superior spot price Seattle      and negative currency translation differences of NOK 769 million.
per lb 10-12 gutted weight) in USD compared to 2008. With the exception
of Japan, the other markets were generally competitive during 2009,            cash fLow
which resulted in a growth in volumes supplied to these markets. As the        Cash flow from operations was very strong in 2009, totalling NOK 2 376
availability of salmon from Chile declined in 2009, supply into the Japanese   million (NOK 1 499 million). This represents an increase of 59% compared
market was reduced by 14.9%.                                                   to 2008. A substantial part of the cash flow from operations was allocated
                                                                               to down payment of interest-bearing debt, amounting to net NOK 1 866
financiaL resuLts                                                              million. Cash outflow for investments were kept at a low level to further
(Figures in parentheses refer to 2008)                                         strengthen the total cash flow. Cash and cash equivalents decreased by
                                                                               NOK 200 million during 2009 to NOK 172 million.
The general trends in the results for Marine Harvest Group in 2009 were:
− Strong demand in key markets combined with tight supply contributing         dividend
   to favorable prices throughout 2009.                                        The Board will propose to the Annual General Meeting an ordinary dividend
− Updated business plan in Chile in Q2 resulting in substantial down-sizing    of NOK 0.35 per share for 2009.
   of operations and write-downs and provisions of NOK 727 million
   included in EBIT.                                                           going concern
− Substantially improved financial position through strong cash flow,          The Board confirms that the financial statements are based on the going
   capital increase and appreciation of NOK towards the loan currencies.       concern assumption in accordance with section 3-3a of The Accounting
                                                                               Act. The confirmation is based on the results reported, the Group’s
operationaL resuLts                                                            business strategy, the financial situation and the budgets established.
Increased prices and improved operational performance had a positive
influence on results in 2009. Operating revenues for 2009 ended at NOK
14 500 million (NOK 13 487 million). Operational EBIT amounted to NOK

    Marine harvest

    annuaL resuLt aLLocation                                                         In October, one site in Region Mid containing 1.4 million fish of one kilo
    To the Annual General Meeting, the Board will propose the following              was diagnosed with PD and all fish was culled/harvested to mitigate further
    allocation of the net earnings in Marine Harvest ASA for the year:               spreading of the disease. The total cost of mortality and clean up amounted
                                                                                     to NOK 37 million. The PD mitigation efforts initiated in Regions South and
                Profit for the year                   NOK    313 million             West have proven successful in 2009 with a significant reduction in the
                Transfer from other equity            NOK    938 million             number of PD outbreaks. Towards the end of the year, sea lice constituted
                Proposed dividend                     NOK 1 251 million              an increasing biological challenge for Marine Harvest Norway. Industry-
                                                                                     wide and company specific mitigation efforts have been initiated (ref
    operationaL perforMance – Business units                                         separate section in this report).
    Marine Harvest Norway Marine Harvest Norway experienced a year
    of operational progress in 2009. Operating revenues amounted to NOK              The average monthly mortality rate was 0.74% in 2009 (0.97%). Seawater
    6 744 million in 2009 (NOK 5 551 million) due to 18% growth in harvest           growth was very good in 2009 due to reduced mortality and good growth
    volume combined with more favorable prices. Market prices developed              conditions. Marine Harvest Norway discontinued trout production during
    favorably during the year as inventories in Chile were depleted and              2009.
    Norwegian supply only partially was able to compensate. The observed
    spot market price (Superior spot price FCA Oslo average all sizes) was NOK       Marine Harvest Chile For Marine Harvest Chile, 2009 was another
    30.22 in 2009 (NOK 25.63). The increase in the average price achieved            challenging year due to the continued presence of the Infectious Salmon
    back to primary processing plant was lower than the increase in the spot         Anemia virus (ISAv). Marine Harvest recognizes the detrimental effects
    market price as Marine Harvest Norway due to currency effects achieved a         the ISA situation has had on the local community and has put effort into
    substantial premium on contracts in 2008. In 2009, the effect of currency        helping employees that have lost their jobs in the downscaling process.
    on the contracts was negative due to the appreciation of the NOK towards         During the second quarter, the Board approved an updated business plan
    EUR. The 2009 third party contract share was 30% (23%). Total harvest            for Marine Harvest Chile. The purpose of the plan was to adjust the scale
    volume ended at 201 676 tons gutted weight in 2009 (171 086 tons). This          of the operation to a low level of activity in the near term and minimize
    increase was possible due to changes in the stocking pattern (spring vs          losses during this period. The plan triggered write-downs and provisions
    fall), better growth in sea water and successful implementation of PD            of NOK 727 million. Of the total, NOK 236 million related to write-downs
    mitigating actions in Regions South and West. The superior share ended at        triggered by freshwater culling and costs above the realizable value in
    93% (89%).                                                                       seawater, while NOK 115 million related to restructuring and NOK 376
                                                                                     million to write- down of assets. Of the asset write-down, NOK 41 million
    The export of fillets to the US market increased throughout the year and         was reversed later in the year as assets have been sold within the Group.
    ended at 12 000 tons gutted weight for the year total (0 tons). All sales from   The development of the operation since the approval of the updated
    Marine Harvest Norway to the US market are channeled through the Miami           business plan has been better than expected. As of end 2009 there were
    sales office. During the year, two small processing/pin boning operations        989 employees (permanent and temporary) in Marine Harvest Chile (3 045
    were opened in the US, one in Miami in May and one in los Angeles                employees) of which 607 in the farming operations (2 727).
    in August. These operations are supporting the Norwegian processing
    operations with the final trims and packaging for the customers. Both US         Operating revenues were NOK 2 322 million in 2009 (NOK 2 148 million)
    plants are consolidated into business unit Marine Harvest Chile together         as shortfall in volume from Chile was compensated by increased sales of
    with other US operating units.                                                   Norwegian and Scottish salmon through the sales office in Miami. Marine
                                                                                     Harvest sold 36 204 tons gutted weight of its own Chilean produced
    In December, a new distribution center close to the Oslo Gardermoen              salmon in 2009 (75 636 tons).
    airport was opened. This set-up will reduce delivery time from processing
    plants in Norway to the customers and will also reduce the total distribution    Operational EBIT amounted to NOK -401 million in 2009 (NOK -569 million)
    costs going forward.                                                             due to biomass write-downs, high cost of biomass sold and mortality.
                                                                                     Towards the end of the year, signs of improved biological conditions
    Operational EBIT was NOK 1 090 million in 2009 (NOK 741 million). The            resulted in a decision to stock 2.2 million smolts in the fourth quarter. This
    main contributing factors to the positive development are the favorable          fish has developed better than planned both with regards to mortality
    volume and price development. The cost level in 2009 was a little higher         and growth. Provided that the positive development continues and the
    than the previous year due to harvesting of PD exposed sites and a               authorities put in place the necessary regulations to support a sustainable
    generally high feed cost level in the first half of the year. Operational EBIT   salmon industry in Chile, Marine Harvest intends to stock up to 6.4 million
    per kilo was NOK 5.40 in 2009 (NOK 4.33). Currency movements related to          smolts in 2010.
    receivables/payables and other short-term positions included in operational
    EBIT were NOK -0.83 per kilo in 2009 (NOK 0.93). Operational EBIT per            Total restructuring costs amounted to NOK 149 million in 2009
    kilo excluding currency effects thus amounted to NOK 6.23 in 2009 (NOK           (NOK 213 million).

8   ANNUAl rePOrT 2009
Marine Harvest Scotland Marine Harvest Scotland experienced a                     Operational EBIT was NOK 232 million in 2009 (NOK 108 million). More
very good year in 2009. Operating revenues were NOK 1 221 million (NOK            favorable prices had a positive impact, while operating costs remained
989 million) due to 17% growth in harvest volume combined with more               fairly stable from 2008 in local currency. In NOK, costs increased due
favorable prices. During 2009 Marine Harvest Scotland harvested 37                to exchange rate effects. Operational EBIT per kilo harvested was high
698 tons gutted weight (32 341 tons). Good growth in seawater was the             at NOK 6.33 per kilo gutted weight (NOK 2.98). An algae bloom with an
main contributor to the increased volume harvested. In local currency, the        associated escape caused mortality in the fourth quarter. Net mortality
average price achieved was 14% higher in 2009 compared to 2008. The               cost for the year amounted to NOK 7 million (NOK 10 million). Currency
Scottish price premium compared to Norwegian salmon was maintained                movements related to receivables/payables and other short-term positions
through strong relationships with contract customers, favorable spot prices       included in EBIT were NOK 0.67 per kilo in 2009 (NOK 0.64).
and a high superior share 94% (89%).
                                                                                  The average monthly mortality rate was 0.51% in 2009 (0.62%). Although
Operational EBIT in 2009 was NOK 274 million (NOK 90 million). In 2008,           mortality has been low, the sea water growth has been reduced compared
profitability was affected by exceptional costs related to an incident of         to 2008. Changes in operating procedures have been initiated to improve
diesel contamination in products sold, amounting to NOK 40 million.               growth, but low dissolved oxygen levels hamper optimal feeding
Operational EBIT per kilo gutted weight ended at NOK 7.26 in 2009 (NOK            procedures.
2.79), which is considered a very strong result. The improvement was
a result of more favorable prices and reduced other costs. Higher feed            In 2009, research and development efforts have been focused on Kudoa.
cost per kilo negatively impacted the operational EBIT in 2009. Currency          Finding a long-term solution for Kudoa is expected to take time.
movements, related to receivables/payables and other short-term positions
included in operational EBIT, were NOK 0.03 per kilo in 2009 (NOK 0.30).          Marine Harvest VAP europe Marine Harvest VAP Europe experienced
                                                                                  a strong year in 2009. Operating revenues were NOK 4 178 million in 2009
Restructuring costs amounted to NOK 9 million in 2009 as a result of site         (NOK 3 770 million). The increase from last year is explained by higher
restructuring (NOK 20 million).                                                   volume sold combined with higher average prices achieved. Volume sold
                                                                                  in 2009 increased by 6% to 58 159 tons as good internal efforts combined
The average monthly mortality rate was 0.65% in 2009 due to a slightly            with strong customer relations contributed to growth. The fourth quarter
more challenging biological environment (0.50%). Despite higher mortality,        was particularly strong for this business unit, with high sales of smoked and
seawater growth was very good in 2009. .                                          elaborated products. For the year, the shift towards lower priced species,
                                                                                  pangasius in particular, was pronounced with an increase of 41.5% in
Marine Harvest Canada Marine Harvest Canada benefitted from                       volume compared to 2008. Sales of salmon products held up well during
favorable prices in the US market in 2009. Operating revenues were NOK            the year with a volume growth of 8.8% compared to 2008. Sales of Atlantic
1 247 million in 2009 (NOK 1 107 million). The average price achieved was         salmon accounted for 63% of the total sales value in 2009 (59%).
NOK 32.33/CAD 5.88 per kilo gutted weight (NOK 27.31/CAD 5.18). During
2009, Marine Harvest predominantly harvested fish from the Campbell               Operational EBIT was NOK 279 million in 2009 (NOK 177 million). Marine
River area, an area that has been negatively affected by soft flesh caused        Harvest VAP Europe has been able to improve margins compared to 2008
by the parasite Kudoa thyrsites. Total costs related to discards and claims       and Operational EBIT before currency movements related to receivables/
as a result of soft flesh amounted to NOK 63 million/NOK 1.72 per kilo            payables and other short-term positions included in EBIT, increased by
harvested in 2009 (NOK 26 million/NOK 0.72). The harvested volume was             76% from 2008 to 2009 due to a more favorable product mix and improved
36 537 tons gutted weight (36 050 tons) while the superior share of 78% in        operational efficiency. During 2009, the business unit has worked to reduce
2009 was very low (82%).                                                          the number of stock keeping units and species in the assortment, which

harvest voLuMe (hog) tons
saLMonids                                                Q1. 09                Q2. 09                  Q3. 09                  Q4. 09            fuLL year 09

MH Norway                                               41 781                48 947                 53 110                   57 838                 201 676
MH Chile 1)                                             13 354                 9 283                  7 689                    5 878                  36 204
MH Canada                                               10 742                12 267                  4 949                    8 579                  36 537
MH Scotland                                              7 623                 9 374                 10 240                   10 461                  37 698

MH Ireland                                               1 296                 1 805                  2 340                    3 195                   8 636
MH Faroes                                                1 381                 2 284                  1 226                    1 458                   6 349

Group total harvest volume                              76 177                83 960                 79 554                   87 409                 327 100
     Volume in Chile is sold volume.

     Marine harvest

     has resulted in an improved margin. Raw material costs were approximately       to reduced margins in 2009 and the operational EBIT for the year ended at
     4% lower in 2009 than in 2008, the main reasons being product mix effects       zero (NOK 10 million).
     (white fish) and lower raw material costs in general for white fish, combined
     with increased processing yields (higher output per kilo raw material). The     As the cod industry experienced substantial setbacks in 2008 and early
     unit also benefited from fixed price contracts for approximately 70% of the     2009 with low growth, mortality and unfavorable prices, the planned
     salmon purchases. The operational EBIT margin was 6.7% in 2009 (4.7%).          stocking in the industry was limited in 2009. Marine Harvest therefore
                                                                                     decided to cull all juveniles in production, suspend further production and
     Some minor restructuring efforts resulted in costs in the amount of NOK         convert the facilities to farming of ballan wrasse (lice mitigation initiative).
     10 million in 2009 (NOK 4 million). Write-down of fixed assets amounted to      The culling of the cod juveniles resulted in a cost of NOK 22 million in 2009
     NOK 18 million for the year and related mainly to a building in France.         and an operating EBIT of NOK -26 million (NOK 15 million).

     Marine Harvest Other Businesses Operating revenues for Marine                   heaLth and safety
     Harvest Other Businesses in total amounted to NOK 1 564 million in 2009         A good and safe working environment has been given higher priority
     (NOK 1 923 million). Operational EBIT was NOK 35 million (NOK 46 million).      in Marine Harvest in 2009. All business units have HSE officers. The
                                                                                     ambition is to operate in a way that ensures no detrimental effects on
     For the sales unit Marine Harvest Asia, operating revenues ended at             people and the environment. “People” is one of 4 guiding principles in
     NOK 879 million (NOK 1 018 million) due to reduced volume from Chile.           the Marine Harvest Group. During 2009, the ambitions in this area were
     Operational EBIT was NOK 20 million (NOK 17 million).                           revised and focus during the year was on reducing the number of lost
                                                                                     Time Incidents (lTI) and absentee rates.
     Marine Harvest Ireland achieved operating revenues of NOK 388 million
     (NOK 287 million) due to a 55% increase in harvest volume. Harvest              In 2009, the Group recorded 219 lTIs, down from 450 in 2008. The
     volume for the year ended at 8 636 tons gutted weight (5 556 tons).             ambition for 2010 is to again cut the number in half and record less than
     Operational EBIT amounted to NOK 21 million (NOK 31 million) due to PD          100 lTIs for the year. This would translate into 9 lTIs per million hours
     challenges and loss of egg sales to Chile. The organic salmon market was        worked, down from 17 in 2009. There were, unfortunately, two fatal
     challenging during the year, but developed favorably towards the end of         accidents reported among Marine Harvest employees in 2009. The
     2009.                                                                           incident happened at the Caleta Velero site in Chile where two employees
                                                                                     died from carbon monoxide poisoning in a confined space. In addition,
     Marine Harvest Faroes achieved operating revenues of NOK 214 million in         there was one incident on Marine Harvest premises related to a third
     2009 (NOK 180 million). The unit benefited from favorable prices, but the       party contractor. Fatal accidents are not acceptable in Marine Harvest and
     sea lice situation became more challenging towards the end of the year and      actions have been taken to mitigate such incidents going forward.
     contributed to extra operational costs. Operational EBIT amounted to NOK
     31 million in 2009 (NOK 25 million).                                            Additional focus has also been put on sick leave during 2009. For Marine
                                                                                     Harvest, the highest sick leave and injury rates are in the harvesting and
     Sterling White Halibut achieved operating revenues of NOK 84 million in         processing plants (cuts and strains). Strains are also the main cause of
     2009 (NOK 67 million). Mortality and high cost of harvested fish contributed    long-term sick leave in the company. Marine Harvest is working proactively
                                                                                     to prevent such injuries and provide for alternative work in cases where
                                                                                     that is necessary. Various measures and awareness schemes such as job
                                                                                     rotation and competence development have had a positive effect on the
                                                                                     statistics. The overall absentee rate in 2009 was 4.1% compared to 4.7%
                                                                                     in 2008.

                                                                                     The Board will continue focusing on these aspects in 2010, recognizing
                                                                                     that through systematic work at all levels in the organization there is room
                                                                                     for further improvement.

                                                                                     peopLe and organiZation, diversity and eQuaL rights
                                                                                     People and Organization At the end of 2009, the Marine Harvest
                                                                                     Group had 4 947 permanent employees and 1 068 temporary employees.

                                                                                     The Chilean operation was substantially downscaled during 2009 due
                                                                                     to reduced activity as a result of the ISA disease. At year-end 2009 all
                                                                                     secondary processing activity had been closed, while the farming and
                                                                                     overhead organizations had been reduced to fit the new production level.
                                                                                     The total number of full-time employees in Marine Harvest Chile at year-

10   ANNUAl rePOrT 2009
end (including the US sales office and the smoked operations in Maine           Marine Harvest research and development efforts are principally focused
and Chile) were 908. At the end of 2008 the corresponding number                on food quality, fish health, feed and feeding, environmental impacts and
was 3 045.                                                                      operational improvements.

Marine Harvest recognizes the detrimental effects these lay-offs have on        The largest development project initiated in 2009 was on farming of ballan
the local community and has put effort into helping former employees in         wrasse for sea lice mitigation in Norway, with an economic frame of NOK 8
their search for new jobs, in addition to running programs for supporting       million the first year and NOK 10 million for each of the next two years.
and developing the most vulnerable employees. Training programs for
key operational personnel in other Marine Harvest units have also been          In 2009, Marine Harvest also concluded a larger technical development
developed to increase skills and prepare them for the future rebuilding of      project for the development of a new type of harvest boat in Norway.
the Chilean operation.                                                          Based on this project, the company will evaluate the possibility for changes
                                                                                to the use of well boats and a possible introduction of harvest boats in all
Marine Harvest believes in the importance of attracting and retaining skilled   regions in Norway. A transition from use of open hatch well boats to use of
and motivated employees and managers with a strong commitment to the            harvest boats for transport and harvesting of fish, will have a positive effect
operations in line with Marine Harvest’s code of conduct.                       on the risk for potential pathogen and sea lice spread and reduce other
                                                                                transport-related risks.
On 26 November 2009, the Board resolved to offer all permanent
employees in Marine Harvest ASA and its Norwegian subsidiaries the              In order to identify longer term mitigation techniques for sea lice
opportunity to purchase shares in the Company within the scope of               management, Marine Harvest is involved in several initiatives. In 2009, the
the Norwegian Tax Act §5-14 (The employees’ opportunity to purchase             Group increased its commitment to and involvement in sea lice research
shares at below market price). The relevant rules in the Tax Act provide the    and in areas of biotechnology, treatment optimization, biological control
employees with a right to purchase shares with a rebate of up to NOK 1          and resistance management. Among the new projects that have been
500. Permanent employees in the Norwegian based entities were on this           supported financially is the sequencing of the sea lice genome.
basis offered to purchase 1 756 shares in the Company at a total value of
approximately NOK 7 500 against a purchase price of approximately NOK           In Canada, research and development efforts have in 2009 been focused
6 000. At the end of the acceptance period 288 employees had accepted           on Kudoa and the company has received public funding to support the
the offer to acquire shares in the Company.                                     programs.

Diversity and equal rights Marine Harvest is committed to ensuring              In 2009, Marine Harvest operated a full-scale research station in
diversity in the Group. The Group’s aim is to be a workplace with no            Norway together with key suppliers Skretting and AquaGroup. The main
discrimination due to gender, ethnicity, national origin, descent, skin         research currently undertaken at this research station, called the Centre
color, language, religion, faith or functional ability in accordance with the   for Aquaculture Competence (CAC), is within sustainable feed, use of
Norwegian Discrimination Act. Marine Harvest is working actively as a           alternative (non-marine) feed ingredients and effects on fish health, growth
group in the areas of recruitment, salary and working conditions, promotion,    and food quality from alternative feed ingredients.
development opportunities and protection against harassment to reach this
aim.                                                                            factors that Might infLuence the eXternaL environMent
                                                                                From a global perspective, the three largest sustainability challenges
The fish farming industry has traditionally been an industry with a majority    related to food production are emissions of climate gases, use of scarce
of male employees. As of end 2009, the shares of male and female                freshwater resources and the use of feed for animal protein production.
employees were 67% and 33% respectively. In 2009, the Group had                 These global challenges are mainly seen as opportunities for the salmon
female managers in the senior management teams of most subsidiaries.            farming industry, as farmed salmon utilizes significantly less feed and less
The Group continues to work actively to have diversity in senior                freshwater than competing agricultural protein producers, and causes
management positions globally. Marine Harvest’s global management               significantly lower emissions of climate gases.
team in 2009 consisted of 7 members whereof 2 women, including the
CEO. Of the 10 members in the Board, there are 4 women.                         Regardless of this competitive advantage, Marine Harvest proactively
                                                                                pursues several initiatives to further improve the utilization of limited
research and deveLopMent                                                        sources of marine raw material in feed, and actively engages in projects
Historically, Marine Harvest research and development (R&D) activities          to establish global standards to ensure sustainable sourcing of marine raw
have been organized by each separate business unit. To increase the cost-       material.
benefit of the Group’s R&D activities, foster development of best practices
across regions and optimize the relationships with, and support of key          Marine Harvest continuously evaluates potential impacts on the external
research institutions, Marine Harvest is now developing a group-wide R&D        environment of the Group’s operations based on own experience,
strategy.                                                                       stakeholder discussions, publicly available science and public regulations.

     Marine harvest

     Potential negative impacts are related to the use of resources as well as           salmon and the price achievement is hence a key driver for profitability and
     discharges and potential environmental effects of operations.                       cash flows.

     Farming and processing of seafood requires the use of marine and                    Over time, the demand for salmon has been growing steadily, whereas
     vegetable feed ingredients, fresh water and energy as well as utilization of        industry supply has been fluctuating strongly due to variations in factors
     common coastal areas.                                                               such as smolt release, biology and sea water temperatures. As a result
                                                                                         of the long production cycle and a limited time window available for
     Discharges from farming may come in the form of feed spill, faeces,                 harvesting, industry players have limited flexibility to manage their supply
     medicine use and antifouling treatment of nets. In processing and                   from month to month. Furthermore, salmon is generally sold as a fresh
     distribution, water discharge, sewerage, waste packaging and fuels may              commodity with a limited time span available between harvesting and
     impact the external environment.                                                    consumption. The consequence of these dynamics is that salmon farmers
                                                                                         are expected to be price takers in the market from week to week. Due to
     Fish farming may also potentially impact the external environment through           the tight supply outlook, the short-term risk linked to the salmon price is
     escaped fish, spread of infective agents and parasites.                             somewhat reduced from previous periods.

     All major, potential impacts on the environment are monitored and reported          Salmon is a protein commodity which is produced in a limited number of
     on in Marine Harvest’s yearly sustainability report. Through the Group-wide         countries and sold globally. Historically, trade restrictions have inhibited
     quality program, Qmarine, Marine Harvest continuously improves and                  the optimal distribution of salmon to the markets and as such impacted
     implements procedures to reduce the potential environmental impacts.                the price yield for the salmon producers in the countries affected by such
     Marine Harvest has also proactively engaged in development of global                restrictions. Marine Harvest has a leading position in the main salmon
     industry standards to secure the sustainability of global fish farming              farming countries and is as such exposed to the level of trade restrictions.
     operations, and proposed changes to regulatory environment in the                   Furthermore, farmed salmon has in some instances been subject to
     operational regions.                                                                critical journalism based on statements and publications from various
                                                                                         research communities and Non-Governmental Organizations (NGOs).
     Potential negative effects on wild fish are reduced by the establishment            This type of attack has had and may potentially result in temporary
     of a “zero tolerance” for escapes, with increasing investments and                  damage to the industry, and can only be countered by good practices and
     procedures, as well as R&D projects and regulatory initiatives to reduce the        well-documented information from the industry. As of today, the industry
     potential spread of parasites and infective agents.                                 has constructive relationships with WWF and a number of national
     In salmon farming, sustainability is a precondition for long-term value             Marine Harvest has a sales contract policy aimed at limiting the exposure
     creation. From the financial year 2008, Marine Harvest has chosen to                to short-term fluctuations in the salmon price. The sales contracts generally
     publish a separate report on sustainability, to ensure that this theme is           have a duration of 3-12 months and cover 15-40% of Marine Harvest’s
     thoroughly discussed and reported on. The 2009 sustainability report will           harvest volume for the next quarter. Although most sales contracts are
     be published before the summer of 2010.                                             entered into on a bilateral basis directly with customers, Marine Harvest is
                                                                                         contracting a limited volume using financial futures (Fishpool). Furthermore,
     risK                                                                                Marine Harvest is reducing its exposure to spot price movements through
     Marine Harvest is exposed to a number of operational and financial risk             its value added processing activities.
                                                                                         Biological risks    Marine Harvest’s salmon farming operations are subject
     Operationally, the main industry specific risk factors are linked to the            to a number of biological risk elements which might impact profitability
     development in the salmon price, biological risks linked to the salmon              and cash flows through adverse effect on factors such as growth, harvest
     farming operations and the development in the salmon feed prices and                volume, mortality, downgrading percentage and claims from customers.
     feed utilization. Furthermore, Marine Harvest is exposed to the general             The biological parameters are impacted by e.g. diseases, virus, parasites,
     operational risk for processing and manufacturing industries. Financially,          algae blooms, low oxygen levels and fluctuating sea water temperatures.
     the main risk factors are linked to general fluctuations in interest rates and
     exchange rates, credit risk and liquidity risk. The Board deems it important        Marine Harvest is striving to manage the exposure to biological risk
     that the Group maintains the necessary measures to manage controllable              factors through increased focus on internal procedures for animal
     risks factors in order to keep the total risk situation within acceptable limits.   husbandry, mitigating actions and countermeasures. Furthermore, Marine
                                                                                         Harvest commits large resources towards mitigating actions together
     operationaL risKs                                                                   with neighboring companies in the various regions, cooperation with
     exposure to the salmon price         Historically, salmon prices have been          regulatory bodies to attain optimal regulations and efficient enforcement
     subject to big fluctuations. Marine Harvest has a large sales volume of             and geographical diversification of the salmon farming operations.

12   ANNUAl rePOrT 2009
Marine Harvest has temporarily reduced the scale of its Chilean business              therefore continuously influence Marine Harvest’s financial statements and
significantly to reduce exposure to biological risk. Together with the                cash flows. Marine Harvest applies an extensive currency hedging policy
authorities and the industry, Marine Harvest is committing large resources            which is aimed at reducing the cash flow implications from movements in
to handle the ongoing sea lice situation in Norway.                                   currency exchange rates.

As the rest of the industry, Marine Harvest has a limited insurance                   Credit risks      Marine Harvest is exposed to the risk of losses if one
coverage against adverse biological events.                                           or more contractual partner do not meet their obligations. A significant
                                                                                      proportion of the Group’s trade receivables are credit insured and credit
exposure to salmon feed prices and feed utilization           The feed cost           ratings are undertaken of all new customers. In 2009, the reduction in
is the largest single cost component in salmon farming. Marine Harvest                the insurance market’s capacity was mitigated through close follow-up
procures its feed from a limited number of feed suppliers globally. The feed          of the customers. Historically, the Group has suffered minor losses on
contracts are structured such that Marine Harvest assumes the general                 trade receivables. The Group is not substantially exposed in relation to any
exposure to price fluctuations on the raw material costs, such as fish meal,          individual customer or contractual partner as of 31 December 2009.
fish oil, vegetable oils and meal. The feed suppliers procure these raw
materials in the global commodity markets. Marine Harvest’s exposure                  Interest risks      The Group is generally financed using floating interest
is left open for this risk factor. Marine Harvest is, however, working                rates for debts to financing institutions and leasing debts. To minimize the
continuously with the feed suppliers to secure that the feed recipes are              risk connected to fluctuations of floating interest rates, the Group has a
altered based on the relative prices of raw materials to secure the lowest            strategy where 50–75 percent of the Group’s interest-bearing debt in the
possible cost of the feed without compromising the quality, growth and                main lending currencies (EUR, USD and GBP), shall be secured by loans
biological robustness of the salmon. In addition to assuming the general              with fixed interest rates or by interest derivatives with an average duration
raw material price risk, the contracts include a fixed nominal payment per            of three to four years. The Board has resolved to deviate from this strategy
kilo of feed to the feed suppliers for the production of the feed. The volume         with respect to USD, where a higher hedging rate is applied.
risk is left with the feed suppliers (no take or pay contracts).
                                                                                      liquidity risks      The largest single factor in connection with liquidity risks
Marine Harvest also assumes operational risk linked to the utilization of the         is fluctuation in salmon prices. Other key liquidity risks are fluctuations in
feed. This risk is mitigated through rolling out best practices, continuous           production and harvest volumes, biological issues, and changes in the feed
benchmarking between sites and regions and cooperation with feed                      price, which is the most important individual factor on the cost side. Feed
suppliers on optimizing feed recipes.                                                 prices are correlated to the marine and agricultural commodity prices of its
                                                                                      ingredients. Feed prices decreased on a unit basis through 2009.
exposure to general risks linked to manufacturing and processing
industries    In addition to the above-mentioned operational risk elements,           shares and sharehoLders
Marine Harvest is exposed to the general operational risk factors facing              The market value of the Marine Harvest Group at the end of 2009 was NOK
manufacturing and processing industries. These risks are mitigated through            15 122 million, which represent an increase from the beginning of 2009 of
internal procedures, policies and insurance programs.                                 NOK 11 469 million.

financiaL risKs                                                                       The Annual General Meeting in May 2009 approved a capital increase of
Currency risks      Marine Harvest has substantial international activities           96 million shares and a proxy to increase the share capital by up to 10%.
and is exposed to changes in the currency exchange rates as a natural part            Marine Harvest successfully completed the placement of 96 million shares
of its business operations. Fluctuations in the currency exchange rates will          totalling NOK 302 million in May.

saLMon price 2008 - 2009                            CHILEAN ATLANTIC SALMON 2-3 LB FOB MIAMI           10-12 LB FRESH FOB SEATTLE           4-5 KG FHL FOB OSLO

                                             USD                                                                                                                    NOK
                                             5,50                                                                                                                  45,00




                                             1,50                                                                                                                  20,00
                                                     1/08          14/08      27/08      40/08           1/09         14/09         27/09         40/09

                                                                                                  WEEK / YEAR

     Marine harvest

     At an Extraordinary General Meeting in November 2009, the Board was            the Board
     given the authorization to raise loans up to NOK 2 200 million on terms        Members of the Board have broad experience and qualifications to
     including a right for the creditors to receive shares in the Company. Marine   fill the Company’s requirements. None of the members of the Board,
     Harvest completed successfully a five year EUR 225 million convertible         except for the employee representatives, have carried out any paid
     bond in March 2010.                                                            work for the Group. In 2009, the members of the Board have been
                                                                                    Svein Aaser, Ole Eirik lerøy (elected Vice Chairman in May 2009),
     corporate governance                                                           leif Frode Onarheim, Kathrine Mo (resigned May 2009), Solveig Strand,
     Marine Harvest finds that proactive and transparent corporate governance       Thorleif Enger, Celina Midelfart, Cecilie Fredriksen, and the three
     is a prerequisite for delivering increased shareholder value, investor trust   representatives elected by the employees; Frank Øren, Geir-Elling
     and low capital costs.                                                         Nygård and Turid lande Solheim.

     Good corporate governance builds on responsible communication between          Chairman of the Board, Svein Aaser, stepped down from his position
     shareholders, the Board and corporate management in the endeavor               with effect from 18 January 2010. Since the three party merger in 2006
     to develop the Company’s role as the leading industrial player in the          he has led the Board through a difficult time, overseeing the integration
     aquaculture industry.                                                          of the three companies while managing the challenges in Chile. The
                                                                                    Board would like to express its gratitude to Svein Aaser for his valuable
     Marine Harvest complies with the “Norwegian Code of Practice for               contribution to the development of Marine Harvest. The Board would also
     Corporate Governance” issued by the Norwegian Corporate Governance             like to thank Kathrine Mo, who stepped down as a board member in May
     Board (NUES). Reporting of compliance and any deviations from the code         2009, for her contributions.
     of practice is updated and available on Marine Harvest’s website.
                                                                                    As of January 18, Ole Eirik lerøy stepped in as acting Chairman of the
     The Board has reviewed the Group’s compliance with the code of practice        Board, while Tor Olav Trøim stepped up from his deputy position to become
     during the year and the Group’s steering documents have been amended.          a board member. The Board held 14 board meetings during 2009.

     The Company’s audit committee met 8 times during 2009 to review                events after the cLose of the year
     accounting and operational issues more in detail. The committee consists       CeO stepped down        The Board and Åse Aulie Michelet reached an
     of leif Frode Onarheim (Chairman) and Solveig Strand.                          agreement that Michelet stepped down as CEO effective 23 March 2010.

                                                                                    During her term as CEO, Michelet has with her strong inspirational energy
                                                                                    made a solid contribution to the development of the Group, and particularly
                                                                                    to the unification of the three former companies which created Marine
                                                                                    Harvest. Her effort and effectiveness in handling the challenging situation
                                                                                    in Chile has been of special importance.

                                                                                    Thomas Farstad, Director of Group Operations Canada, Scotland and
                                                                                    Others, will be acting CEO until a permanent CEO is in place. Farstad has
                                                                                    been a member of the General Management Team of Marine Harvest since
                                                                                    the Group’s inception in 2007. Prior to this Farstad held various positions in
                                                                                    the group management of Fjord Seafood.

                                                                                    Convertible bond       Marine Harvest raised EUR 225 million in the
                                                                                    beginning of March through the issue of convertible bonds. The bonds will
                                                                                    have a coupon of 4.5% and a conversion price of EUR 0.8335 per share
                                                                                    representing a conversion premium of 30% on the share price on the day
                                                                                    of launch of the convertible bonds. The bonds have a duration of five years
                                                                                    and can be called by Marine Harvest after three years.

                                                                                    Feed contract      In February Marine Harvest ASA exercised an option
                                                                                    to extend for a one year period a feed supply contract with Skretting AS
                                                                                    covering 58% of Marine Harvest’s global feed requirement.

                                                                                    future prospects
                                                                                    2009 represents a significant improvement, both operationally and
                                                                                    financially for Marine Harvest. The improvement in performance across
                                                                                    business units comes as a result of favorable market conditions, efficient

14   ANNUAl rePOrT 2009
and resolute control of the situation in Chile, lower feed prices and steady,   of significant improved financial flexibility, the good prospects for salmon
operational progress.                                                           prices and potential for operational progress, the capital expenditure level
                                                                                going forward will increase to NOK 900 – 1 000 million per year. Marine
Demand for seafood is strong and 2010 has started with price increases          Harvest expects to harvest 292 000 tons in 2010.
and good growth in volume. The strong position of salmon in the market
points to another good year for Marine Harvest as well as the industry. The     Feed is the most important cost component for the company. A competitive
Board expects a favorable market balance in 2010 and 2011 due to good           feed supply is imperative for this industry and Marine Harvest will, in 2010,
underlying demand and limited growth in supply. In 2010, the supply will        conclude the negotiations of improved new feed contracts for the years to
shrink by 5-9% compared to 2009. Although the US market has to compete          come.
with the European customers on a day to day basis, Marine Harvest has a
long-term perspective on the US market and will serve it from Europe until      The Company will be refinanced in 2010. There is a good interest in the bank
volume from Chile picks up.                                                     market for a renewal of the financing and the successful placement of a
                                                                                convertible bond in March this year has prepared the ground for competitive
The situation in Chile is under control and the organization is now adjusting   terms.
to the level sufficient to handle today’s production and the preparations for
the revamp of the operations. The Board is confident that there is a strong     Marine Harvest will distribute a dividend of NOK 0.35 per share in 2010, the
potential in Chile when the biological and regulatory situation allow for a     first cash dividend since the three party merger in 2006. The dividend policy
revamp of the operations and Marine Harvest will take an active part in that    for the company will be communicated later this spring.
rebuilding. The performance of the small number of smolt released in 2009
is promising.                                                                   In 2010, more attention will be given to the development of the Company’s
                                                                                portfolio. The downstream part, which delivered strong results in 2009,
The sea lice situation in the Norwegian industry is challenging. Together       needs further streamlining while the upstream part needs to be more
with the industry and the authorities, Marine Harvest is working on several     focused and adjust to a situation where the salmon markets are no longer
initiatives to handle these issues and have taken preparatory actions should    regional but interlinked to one global market.
the situation escalate.
                                                                                Both from a market and nutritional perspective, salmon has an unrivalled
Marine Harvest has unused capacity in Norway and will, due to limited           position. The future of salmon farming is promising and Marine Harvest will
growth in smolt release in 2009, increase the smolt release by 10% in 2010,     use its operational and financial leverage to strengthen its position in the
which is above the long-term trend of 5%. The company has held back on          industry.
capital expenditure due to the operational challenges in Chile. As a result

                                                                     osLo, 23 March 2010

           Ole Eirik lerøy                         Thorleif Enger                    Cecilie Fredriksen                          Celina Midelfart

         Geir Elling Nygård                    leif Frode Onarheim                 Turid lande Solheim                           Solveig Strand

           Tor Olav Trøim                            Frank Øren                                                                  Thomas Farstad
                                                                                                                          ACTING CHIEF EXECUTIVE OFFICER

     Marine harvest

     Board of Directors
                          Ole Eirik Lerøy     (1959)
                          Acting Chairman of the Board
                          position: Chairman of the Norwegian Seafood Federation

                          education: Educated at the Norwegian school of Management 1980-84,
                          AFF management program 1992.
                          Background: Former CEO in lerøy Seafood Group ASA1991-2008.
                          Mr. lerøy has broad experience from the seafood industry. He is Chairman
                          of the Board of The Norwegian seafood federation (FHl) and former
                          Chairman of the Board of the Norwegian Seafood Export Counsil (NSEC).
                          He is member of the Board of the international Groundfish forum.
                          Number of shares: Ole Eirik lerøy and affiliated holds in total 10 200 000
                          shares in Marine Harvest and have TRS agreements with exposure to
                          further 30 000 000 shares.

                          Thorleif Enger (1943)
                          position: Previously President and CEO, Yara

                          education: PhD, MSc and BSc in Structural Engineering from University
                          of Colorado
                          Background: Various positions in Hydro since 1973: Executive Vice
                          President of Hydro Agri from 1999 until appointed CEO in 2004. Executive
                          Vice President of Oil & Energy from 1996 to 1999, President of Hydro’s
                          Exploration & Production Division from 1987 to 1996, and Project Director
                          of the Oseberg field from 1982 to 1986.
                          Number of shares: 0

                          Cecilie Fredriksen (1983)
                          position: Frontline Corporate Services ltd

                          education: Bachelor of Business and Science from london Metropolitan
                          Background: Cecilie Fredriksen is also member of the Board of Aktiv
                          Kapital ASA.
                          Number of shares: 0

16   ANNUAl rePOrT 2009
Celina Midelfart (1973)
position: Chairman of the Board Midelfart Holding AS, Executive VAMI AS

education: BSc Stern School of Business, NYU, and london School of
Background: CEO of Midelfart AS, from 2004 - 2007. Executive Chairman of
companies within the Midelfart Group.
Number of shares: 1 000 000

Geir-Elling Nygård (1966)
Employee representative
position: Technician (Operations), Marine Harvest Norway Region South

education: Certification in carpentry, certification and college studies in
aquaculture, management training.
Background: Started in Mowi AS in 1990, a company later incorporated into
Marine Harvest. Prior to this, Nygård worked in 2 smaller aquaculture
Number of shares: 0

Leif Frode Onarheim (1934)
position: Associate Partner, Norscan Partners AS

education: MBA, Graduate from Norwegian School of Economics and
business administration (NHH).
Background: Former President and CEO, Nora Industrier AS, President
Norwegian School of Management 1993-1997, Chairman NHO 1996-2000,
Member of Parliament 2001-2005, Director of Private and Governmental
Number of shares: 300 000

     Marine harvest

                          Turid Lande Solheim (1970)
                          Employee representative
                          position: Production Manager, Marine Harvest Norway AS

                          education: Studies in economics and aquaculture, Molde Regional College
                          Background: Started in the seafood business in 1993 in Mowi AS, a
                          company later incorporated in Marine Harvest.
                          Number of shares: 38 000 owned by spouse

                          Solveig Strand (1961)
                          position: General Manager

                          education: IT/ Economic degree.
                          Background: Managing Director of companies within the Strand Group.
                          Former Parliament Secretary for the Ministry of Fisheries.
                          Number of shares: 20 000

                          Tor Olav Trøim (1963)
                          position: VP and Director of Frontline ltd.

                          education: Master of Science from NTNU University of Technology in
                          Trondheim, Norway in 1985.
                          Background: Extensive background as a Director in companies like
                          Knightsbridge Tankers ltd, Aktiv Kapital ASA and Golar lNG. He is also
                          President and Chief Executive Officer of Ship Finance International. Until April
                          2000, Mr. Trøim was the Chief Executive Officer of Frontline Management AS.
                          Prior to his service with Frontline, Mr. Trøim served as Managing Director and a
                          member of the Board of Directors of DNO AS, a Norwegian oil company.
                          Number of shares: 5 000

18   ANNUAl rePOrT 2009
Frank Øren      (1972)
Employee representative
position: Operations Manager, Marine Harvest Norway
Region North

education: Certification and university studies in aquaculture, various
Background: Started in the seafood industry in 1990. Øren started in Fjord
Seafood in 1996, a company later incorporated into Marine Harvest.
Number of shares: 0

     Marine harvest

     Financial Statements
     and Notes
     et år preget av utfordringer og fokus på langsiktig utvikling.

20   ANNUAl rePOrT 2009
Statement of comprehensive income
Marine harvest group

(noK MiLLion)                                                            note        2009       2008       2007

Revenue and other income                                                    5    14 500.2   13 486.9   14 091.5

Cost of materials                                                                -8 690.9   -8 654.4   -9 146.1
Fair value adjustment on biological assets                                 21      301.2      -278.8    -350.4
Salary and personnel expenses                                           6/7/11   -2 167.4   -2 139.8   -2 165.0
Restructuring costs                                                         9      -169.5     -241.0     -196.3
Other operating expenses                                                         -1 448.2   -1 393.8   -1 304.3
Income/loss from associated companies                                      18       69.5         5.8      66.6
Depreciation and amortization                                           16/17      -687.7     -685.3     -791.8
Impairment losses                                                       16/17      -373.1   -1 579.4      -12.1

earnings before interest and taxes (eBIT)                                         1 334.1   -1 479.8     192.1

Net interest expenses                                                      28      -392.9     -485.4    -380.9
Net currency effects                                                       28      690.6      -844.6     343.9
Other financial items                                                      28        28.7     -451.5       -7.7

earnings before taxes (eBT)                                                       1 660.5   -3 261.3     147.4

Taxes                                                                      13      -358.3     409.3      -110.4

Net earnings from continuing operations                                           1 302.2   -2 852.0      37.0

Income from discontinued operations/assets held for sale                                -          -      -31.9

Profit or loss for the year                                                       1 302.2   -2 852.0        5.1

Other comprehensive income
Change in fair value of cash flow hedges                                   28     1 326.6   -1 279.4       97.0
Deferred tax related to fair value of cash flow hedges                             -379.8     338.7           -
Currency translation differences                                                   -762.3     858.7     -830.2
Currency translation differences related to non-controlling interests                -6.3       10.1      14.8
Other gains and losses in comprehensive income                                      58.7       69.2       -27.2

Total other comprehensive income                                                   236.9        -2.7     -745.6

Comprehensive income for the year                                                 1 539.1   -2 854.7     -740.5

Profit or loss for the year attributable to
Non-controlling interests                                                             5.9        0.6       -0.4
Owners of Marine Harvest ASA                                                      1 296.3   -2 852.6       5.5

Comprehensive income for the year attributable to
Non-controlling interests                                                            -0.4       10.7      14.4
Owners of Marine Harvest ASA                                                      1 539.5   -2 865.4     -754.9

Earnings per share - basic and diluted                                     14       0.37       -0.82      0.00

     Marine harvest

     Statement of financial position
     Marine harvest group

     (noK MiLLion)                            note       2009       2008


     Non-current assets
     licenses                                   16    5 409.5    5 766.6
     Deferred tax asset                         13      54.5      230.5
     Goodwill                                   16    2 142.6    2 239.9
     Other intangible assets                    16     136.0      160.0
     Total intangible assets                          7 742.6    8 397.0

     Property. plant and equipment              17    3 518.1    4 243.6
     Investments in associated companies        18      520.1     513.5
     Other shares                               19      118.8      78.9
     Total tangible assets                            4 157.0    4 836.0

     Total non-current assets                        11 899.6   13 233.0

     Current assets
     Inventory                                 20       742.7    1 074.5
     Biological assets                          21    5 351.1    5 620.6
     Trade receivables                         23     1 672.1    1 903.4
     Other receivables                         23       551.6     532.4
     Cash and cash equivalents                 22      172.2      372.6
     Total current assets                             8 489.7    9 503.5

     Total assets                                    20 389.3   22 736.4

22   ANNUAl rePOrT 2009
(noK MiLLion)                                                                                    note           2009               2008

eQuity and LiaBiLities

Paid-in capital                                                                                    15       11 621.4        11 324.7
Other equity                                                                                                  -205.9         -1 745.3
Total equity attributable to owners of Marine Harvest ASA                                                   11 415.5         9 579.5

Non-controlling interests                                                                                       45,0               45,1
Total equity                                                                                                11 460.5         9 624.6

Non-current liabilities
Deferred tax liabilities                                                                           13        1 142.6           732.9
Non-current interest-bearing debt                                                                 26         5 116.9          6 747.7
Other non-current liabilities                                                                     29            99.8           116.7
Total non-current liabilities                                                                                6 359.3         7 597.4

Current liabilities
Current tax liabilities                                                                            13           50.8               69.9
Current interest-bearing debt                                                                      25          130.3         1 365.5
Trade payables                                                                                     24        1 339.8         1 729.2
Other current liabilities                                                                          24        1 048.6         2 349.9
Total current liabilities                                                                                    2 569.5         5 514.5

Total equity and liabilities                                                                               20 389.3         22 736.4

                                                             osLo, 23 March 2010

           Ole Eirik lerøy                  Thorleif Enger                  Cecilie Fredriksen          Celina Midelfart

         Geir Elling Nygård             leif Frode Onarheim                Turid lande Solheim          Solveig Strand

            Tor Olav Trøim                    Frank Øren                                                Thomas Farstad
                                                                                                  ACTING CHIEF EXECUTIVE OFFICER

     Marine harvest

     Statement of cash flow
     Marine harvest group

     (noK MiLLion)                                                       note        2009      2008

     Cash flow from operations
     Earnings before interest and taxes (EBIT)                                   1 334.1    -1 479.8
     Adjustments for impairment losses and depreciation                  16/17   1 060.8    2 264.7
     Adjustments for fair value adjustment on biological assets            21     -301.2      278.8
     Adjustments for gain/loss on disposal of assets                       17        -4.8      -10.4
     Adjustments for income/loss from associated companies                 18      -69.5        -5.8
     Taxes paid                                                            13       32.9       14.0
     Change in inventory. trade payables and trade receivables                     349.4      479.9
     Other adjustments                                                             -25.9      -42.8
     Cash flow from operations                                                   2 375.8    1 498.6

     Cash flow from investments
     Proceeds from sale of fixed assets                                  16/17      13.7       42.1
     Payments made for purchase of fixed assets                          16/18    -643.4     -791.7
     Proceeds from sale of shares and other investments                             66.2       58.7
     Purchase of shares and other investments                                      -22.5       -13.1
     Cash flow from investments                                                   -586.0     -704.0

     Cash flow from financing
     Proceeds from new interest-bearing debt (current and non-current)   26/29     246.7      733.7
     Down payment of interest-bearing debt (current and non-current)     26/30   -2 112.8   -1 032.1
     Interest received                                                              11.4       34.8
     Interest paid                                                                -410.7     -552.4
     Equity paid-in                                                                294.6           -
     Cash flow from financing                                                    -1 970.8    -816.0

     Currency effects on cash and cash equivalents                                  -19.4      31.4

     Net change in cash and cash equivalents in period                            -200.4       10.0

     Cash and cash equivalents - opening balance                                   372.6      362.6
     Net change in cash and cash equivalents in period                            -200.4       10.0

     Cash and cash equivalents - closing balance total                     22      172.2      372.6

24   ANNUAl rePOrT 2009
Statement of changes in equity
Marine harvest group

(noK MiLLion)

                                                  attriButaBLe to owners of Marine harvest asa
                                                                                                                                     non-     totaL
2009                                 share           share         other     cash fLow        foreign     other     totaL     controLLing    eQuity
                                    capitaL        preMiuM        paid-in        hedge       currency    eQuity                 interests
                                                   reserve       capitaL      reserves    transLation

Equity 01.01.09                      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 31.12.09                2 681.2          5 917.5     3 022.7         117.2         -761.7     438.9 11 415.5             45.0 11 460.5

(noK MiLLion)

                                                  attriButaBLe to owners of Marine harvest asa
                                                                                                                                     non-     totaL
2008                                 share           share         other     cash fLow        foreign     other     totaL     controLLing    eQuity
                                    capitaL        preMiuM        paid-in        hedge       currency    eQuity                 interests
                                                   reserve       capitaL      reserves    transLation

Equity 01.01.08                      2 609.2          8 692.7        27.4         111.1         -858.1   1 867.3 12 449.6             34.4 12 484.0
Net equity effect on expensing of
stock options                                                         -4.7                                             -4.7                       -4.7
Comprehensive income for the year             -              -                   -940.7          858.7   -2 783.4 -2 865.4            10.7   -2 854.7
Total equity 31.12.08                2 609.2          8 692.7        22.7        -829.6            0.6     -916.1   9 579.5           45.1   9 624.6

share issue coMpLeted during 2009
SHARE ISSUE 27.05.2009 A private placement was completed of a total of 96 million new shares, each at par value NOK 0.75, at a subcription price of
NOK 3.15 per share. Gross proceeds from the private placement amounted to NOK 302.4 million.

     Marine harvest

     Notes – Marine Harvest Group

     1 General information

     Marine Harvest ASA is a Norwegian company located in Stortingsgaten 8,          These financial statements are presented in NOK, and all figures are
     0161 Oslo. Marine Harvest ASA is a public company listed at the Oslo Stock      presented in millions, unless otherwise stated. The companies in the Group
     Exchange, with the ticker MHG.                                                  have their national currency as functional currency, except for companies
                                                                                     in Chile and Singapore where USD is the functional currency. The parent
     The nature of the Group’s operations and its principal activities are           company has NOK as its functional currency.
     described in notes 4 and 5. Marine Harvest has operations in 18 countries
     and has structured the main part of the business in 5 business units;           Comparable figures for two years are presented for the statement of
     the farming operations Marine Harvest Norway, Marine Harvest Chile,             comprehensive income, one-year comparison is provided for the statement
     Marine Harvest Canada and Marine Harvest Scotland, and the value added          of financial position and the statement of cash flow.
     processing operations in Marine Harvest VAP Europe, mainly operating in
     central Europe.                                                                 The financial statements were authorized for issue by the Board of Directors
                                                                                     on 23 March 2010.

     2 Significant accounting policies

     The principal accounting policies applied in the preparation of these               entities that issue rights in a currency other than functional currency,
     consolidated financial statements are set out below. These policies have            from treating the rights as derivatives with fair value changes recorded
     been consistently applied to all periods presented.                                 in profit or loss. Such rights will now be classified as equty instruments
                                                                                         when certain conditions are met. Marine Harvest expects to apply IFRS
     Basis of preparation                                                                9 as of 1 January 2011.
     The annual report comprises statement of comprehensive income,
     statement of financial position, statement of changes in equity, cash           There are also several other enacted changes in standards and
     flow statement and note disclosures for the Group. The accounting year          interpretations that are not yet effective at the end of 2009. These are not
     equals the calendar year. The financial statements for the Group have been      considered to have a material effect for the Group’s reporting.
     prepared in accordance with International Financial Reporting Standards and
     the interpretations issued by the International Accounting Standards Board      The financial statements have been prepared on a historical cost basis,
     (IASB) as adopted by the EU (EU-IFRS). Additional disclosure requirements       except for where IFRS require recognition at fair value, mainly related to
     according to the Norwegian Accounting Act are included.                         measurement of certain financial instruments and valuation of biomass.

     At the end of 2009, there are new standards, changes in existing standards      consoLidation
     and interpretations that are not yet effective, but will be relevant for the    Consolidation The consolidated financial statements present the
     Marine Harvest Group:                                                           financial position, comprehensive income, changes in equity, and the cash
       − IFRS 3 (revised) Business Combinations with amendments and                  flow for the Group as a combined entity.
         clarifications related to the use of the purchase method. This includes
         issues such as goodwill in business combinations achieved in stages,        Subsidiaries The Group’s consolidated financial statements comprise
         non-controlling interest and contingent considerations. Transaction         the financial statements of companies in which the parent company or
         costs other than share and debt issuance cost will be expensed as           subsidiaries have a direct or indirect controlling influence. A controlling
         incurred. Marine Harvest will apply IFRS 3 (R) as of 1 January 2010.        influence normally exists if the Group directly or indirectly owns more
       − IAS 27 (revised) Consolidated and Separate Financial Statements             than 50% of the voting capital in the controlled entity. Recently acquired
         provides more guidance on accounting for changes in ownership               subsidiaries are included from the time a controlling interest is obtained.
         interest in a subsidiary and the disposal of a subsidiary. Marine Harvest   Divested subsidiaries are included in the consolidated financial statements
         will apply IAS 27 (R) as of 1 January 2010.                                 up to the point of divestiture.
       − IFRS 9 Financial Instruments replaces the classification and measur-
         ement rules in IAS 39 Financial Instruments – Recognition and measure-      Investment in associates Associated companies are defined as
         ment. Marine Harvest expects to apply IFRS 9 as of 1 January 2013.          companies in which the Group has significant influence and can exercise
       − Amendments to IAS 32 Financial Instruments: Presentation                    significant, but not controlling influence (normally ownership of 20-50%).
         Classification of Rights Issued. The amendment provides relief to           Associated companies are included in the Group financial statements

26   ANNUAl rePOrT 2009
according to the equity method. The Group’s share of profit in an associated      comprehensive income and accumulated in the separate component of
company is its proportionate amount of the after-tax profit of the associated     equity, will be reclassified from equity to profit or loss (as a reclassification
company, less any depreciation of the surplus value (due to the cost of the       adjustment) when the gain or loss on disposal is recognized.
ownership interest exceeding the acquired share of equity). In statement
of comprehensive income, the share of profit in associated companies is           Transactions in foreign currency Transactions made in a foreign
classified on a separate line included in earnings before interest and taxes.     currency are translated using the exchange rate at the time of the
In the statement of financial position, ownership interests in associated         transaction.
companies are classified as non-current assets.
                                                                                  Receivables, debt and other monetary items in foreign currency are
elimination of internal transactions All transactions and balances                measured at the exchange rate at the closing date and the translation
between companies in the Group are eliminated. Unrealized gains from              differences are charged to profit or loss continuously. Other assets and debt
internal transactions are eliminated. Unrealized losses from internal             in foreign currencies are valued at the exchange rate on the transaction date.
transactions are also eliminated, but are considered an impairment indicator
of the asset transferred.
                                                                                  financiaL instruMents – initiaL and suBseQuent
elimination of shareholdings in subsidiaries Shareholdings in                     MeasureMent
subsidiaries are eliminated in the Group financial statements according to        Initial recognition Financial instruments are recognized in the financial
the acquisition method. The difference between the cost price of the net          statement when Marine Harvest becomes a party to the contractual
ownership interest and the recognized value of the net assets at the time         provisions of the instrument. All financial assets are initially measured at
of acquisition (excess value) is analyzed and allocated to assets and liability   fair value plus, in the case of investments not at fair value through profit or
according to their fair value. Any further additional value is capitalized as     loss, directly attributable transaction costs. All financial liabilities are initially
goodwill. If the cost price of the net ownership interest is lower than the       measured at fair value minus, in the case of loans, directly attributable
value of the acquired net assets, the difference (badwill) is charged directly    transaction costs.
to profit or loss. Deferred tax provisions are made for the excess values,
except for goodwill. The nominal tax rate for the relevant tax jurisdiction is    Financial instruments in Marine Harvest are classified into the following
used when calculating deferred tax.                                               specified categories:
                                                                                    −Financial assets and liabilities measured at amortized cost
Discontinued operations/assets held for sale Non-current assets                     −Financial instruments at fair value through profit or loss
and liabilities are classified as held for sale if their carrying amount is         −Financial assets at cost because the fair value cannot be reliable
expected to be recoverable through sales transactions rather than through             measured
own use, it is expected that the sale is likely to occur within one year from       −Financial derivatives designed as hedging instruments which qualify for
closing date, and management has a clear commitment to sell the assets.               hedge accounting
Non-current assets and liabilities held for sale are measured at the lower of     The classification depends on the nature and the purpose of the financial
the carrying amount and fair value less sales cost. Discontinued operations       instrument, and is determined at the time of initial recognition. Subsequent
is a major line of business or geographical area of operations that either has    measurement of financial instruments depends on their classification in the
been disposed of, or is classified as held for sale as part of a disposal plan.   specified categories.
Net profit from discontinued operations including gain or loss on sale of
discontinued operations and assets held for sale is presented on a separate       Subsequent measurement of financial assets and liabilities
line in comprehensive income. In the statement of financial position assets       measured at amortized cost loans and receivables are non-derivative
and liabilities held for sale are also presented on separate lines.               financial assets with fixed or determinable payments that are not quoted
                                                                                  in an active market. After initial measurement, such financial assets and
foreign currency transLation                                                      interest bearing loans are subsequently measured at amortized cost using
The financial statements for the Group are presented in NOK, the functional       the effective interest rate method, less impairment.
currency for the parent company.
                                                                                  The amortization and losses from impairment are recognized in profit or loss
Translation of accounts of foreign subsidiaries Profit or loss                    as financial items.
transactions in foreign subsidiaries are translated using the average
exchange rate for the consolidation period. Assets and liabilities of a foreign   Subsequent measurement of financial instruments at fair value
subsidiary are translated at the exchange rate at the end of the reporting        through profit or loss Financial instruments at fair value through profit
period.                                                                           or loss include
                                                                                    − financial instruments held for trading
On the disposal of a foreign operation, the cumulative amount of the                − financial instruments designated upon initial recognition at fair value
translation differences relating to that foreign operation, recognized in other       through profit or loss.

     Marine harvest

     Financial assets are classified as held for trading if they are acquired for      When a derivative is entered into, an evaluation is made of whether
     the purpose of selling or repurchasing. This category includes derivative         the derivative is part of a portfolio qualifying for hedge accounting or
     financial instruments that are not designated as hedging instruments              if changes in market value shall be charged to the profit or loss. The
     qualifying for hedge accounting.                                                  classification is documented with a description of the hedge relationship
                                                                                       and how to measure and follow up on hedge effectiveness.
     Marine Harvest has designated investments in other shares listed on the
     stock exchange into this category.                                                Fair value hedges Gains and losses on derivatives hedging the fair value
                                                                                       of an asset is charged to the profit or loss where it is fully or partly offset by
     Financial instruments at fair value through profit or loss are carried in         the change in value of the asset being hedged.
     the statement of financial position at fair value with changes recognized in
     profit or loss:                                                                   Cash flow hedges The non-current currency exposure in certain business
       − as operational revenues/expenses for current forward exchange contracts       units is hedged using forward contracts. The hedges are determined by
       − as financial items for interest rate swaps and other shares                   expected future cash flows in the relevant foreign currency. Gains and
                                                                                       losses on derivatives constituting a cash flow hedge is recognized in other
     Fair value of financial instruments       On each reporting date, the fair        comprehensive income and in a hedging reserve within equity until the
     value of the financial instruments that are traded in active markets are          hedged cash flow materializes and affects the profit or loss.
     determined by reference to quoted market prices or dealer price quotations,
     without any deduction for transaction costs. For financial instruments not        If a cash flow hedge expires without being renewed or the hedge
     traded in an active market, the fair value is determined using appropriate        relationship is terminated, accumulated gains and losses in the hedging
     valuation techniques                                                              reserve within equity are recycled through profit or loss in accordance
                                                                                       with the above principle. If the hedged transaction is no longer expected
     Offsetting financial instruments        Financial assets and liabilities are      to occur, accumulated unrealized gains and losses previously recognized in
     offset and the net amount recognized in the statement of financial position       other comprehensive income is immediately reversed and recycled through
     only when there is a legally enforceable right to offset the recognized           profit or loss.
     amounts and there is an intention to settle on a net basis, or settle the asset
     and the liability simultaneously.                                                 cLassification
                                                                                       Assets and liabilities      Cash, assets and liabilities associated with the regular
     Impairment of financial assets Financial assets, other than those                 business cycle, assets held for sale, and items due for payment within one year
     subsequently measured at fair value, are assessed for indicators of               from the end of the reporting period are classified as current assets or current
     impairment. Financial assets are considered to be impaired when there is          liabilities. All other assets are classified as non-current assets. All other liabilities
     objective evidence that the estimated future cash flow from the investment        and provisions for non-current liabilities are classified as non-current.
     will be negatively affected.
                                                                                       Discontinued operations/assets held for sale Net result in discontinued
     Derecognition of financial instruments A financial asset is                       operations and operations held for sale are presented separately in the
     derecognized when the contractual rights to the cash flows from the               statement of comprehensive income. In the statement of financial position,
     asset expire or when the Group has transferred the financial asset and            assets and liabilities owned by operations held for sale are presented on
     substantially all risks and rewards of ownership of the asset to another          separate lines.
     entity. A financial liability is derecognized when the obligation under the
     liability is discharged, cancelled or expired.                                    Currency effects in comprehensive income Currency effects related
                                                                                       to trade receivables and payables, short-term hedging instruments, bank
     derivative financiaL instruMents and hedge accounting                             and current accounts are classified as part of EBIT. Currency effects related
     The Group uses derivative financial instruments such as forward currency          to long term receivables or debt are classified as financial items. Currency
     contracts and interest rate swaps to hedge its foreign currency risks             effect related to cash flow hedges are classified as other comprehensive
     and interest rate risks. Derivative financial instruments are initially and       income.
     subsequently recognized at fair value. Derivatives are classified as
     financial assets when the fair value is positive and as financial liabilities     eQuity
     when the fair value is negative.                                                  Financial instruments are classified as debt or equity in accordance with the
                                                                                       underlying economic realities.
     Gains or losses at expiry as well as unrealized changes in fair value
     of derivatives are recognized in profit or loss, except for cash flow             Interest, dividends, gains or losses related to a financial instrument that is
     hedges qualified for hedge accounting, which are recognized in other              classified as debt, are presented as income or expense in the statement of
     comprehensive income.                                                             comprehensive income. Distributions to owners of financial instruments
                                                                                       classified as equity will be accounted for directly in equity.

28   ANNUAl rePOrT 2009
Cost and tax effects related to transactions with shareholders are recognized       property, pLant and eQuipMent
directly in equity. Purchase and sale of treasury shares is recognized directly     Property, plant and equipment is measured at acquisition cost less
in equity.                                                                          accumulated depreciation and write downs. Costs associated with normal
                                                                                    maintenance and repairs are expensed when they occur. Costs of major
Convertible bonds made up of both a debt and equity element, are, when issued,      replacements and renewals that substantially extend the economic life of
separated into two components and reported as debt and equity respectively.         an asset are capitalized. Assets are considered fixed assets if the useful
                                                                                    economic life exceeds one year. Borrowing cost that are directly attributable
revenue recognition                                                                 to the acquisition, construction or production of a qualifying asset form part
Revenue is measured at the fair value of the consideration received or              of the capitalized cost of that asset.
receivable for the sale of goods and services in the ordinary course of business.
Revenue is shown net of discounts, VAT and other sales related taxes.               Ordinary straight-line depreciation is applied over the useful life of the asset,
                                                                                    based on the asset’s historical cost price and estimated residual value at
Revenue for the company is mainly sales of fish. Sales of goods are recognized      disposal. If a substantial part of an asset has an individual and different
when the goods are delivered and significant ownership and risks have passed.       useful life, this part is depreciated separately. Depreciation is classified as
This will normally be at delivery.                                                  an operational expense in the statement of comprehensive income. The
                                                                                    asset’s residual value and useful life is evaluated annually.
Changes in estimated fair value on biomass are recognized in profit or loss. The
fair value adjustment is classified on a separate line; “fair value adjustment on   The gain or loss arising from the disposal or retirement of an asset is
biomass”. The change in fair value adjustment is calculated as the change in fair   determined as the difference between the sales proceeds and the carrying
value of the biomass less the change in accumulated cost of production for the      amount of the asset.
biomass. At harvest, fair value adjustments are reversed.
Interest income is recognized on an accrual basis.                                  At the end of each reporting period the carrying amounts of the Group’s
                                                                                    assets are reviewed to determine whether there are indications that specific
governMent grants                                                                   assets have suffered an impairment loss. If such indications exist, the
Government grants are deducted from the carrying amount of the asset and            recoverable amount of the asset is estimated in order to determine the
recognized as income through reduced depreciations of the asset.                    extent of the impairment loss (if any). Recoverable amount is the higher of
                                                                                    fair value less costs to sell and the net present value of discounted cash
Government grants related to biological assets measured at fair value will be       flows (value in use).
recognized as income, when and only when, the conditions attached to the
government grants are met.                                                          In addition an annual impairment test is carried out for intangible assets with
                                                                                    indefinite life including goodwill. This impairment test is done by assessing
goodwiLL                                                                            the value in use based on the discounted future cash flows for each cash
In a business combination, the difference between fair value of acquired            generating unit. For further information regarding impairment testing of
assets and liabilities and the acquisition cost is capitalized as goodwill. The     intangible assets, reference is made to note 16 Intangible assets.
goodwill in the statement of financial position is measured at acquisition
cost less any write downs made after acquisition. The goodwill is allocated         If the recoverable amount of a cash generating unit is estimated to be less
to the cash generating units which were expected to contribute to synergy           than the carrying amount of the net assets of the cash generating unit, a
capture and future profits when the acquisition occurred. The goodwill              write-down to the recoverable amount is recognized. If a write-down is
is subject to an annual impairment test, or when there is indication of             required, goodwill is written down first, thereafter other intangible assets. If
impairment, and any impairment loss is recognized in the comprehensive              further write- downs are required other fixed assets will be written down.
income. Impairment losses on goodwill are not reversed.
                                                                                    Impairment losses recognized in previous periods are reversed if the
When selling a subsidiary or an associated company, the goodwill related to         recoverable amount exceeds the carrying amount in a later period. The
the investment is included in the calculated gain/loss on the sale.                 reversal will not exceed the carrying amount that would have been
                                                                                    determined, net of depreciation, had no impairment loss been recognized
farMing Licenses                                                                    for the asset in prior years. Impairment losses on goodwill are not reversed.
The value of licenses acquired by the company (mainly licenses for
farming of salmon), is capitalized. In Norway the licenses are considered           Tangible assets that are not in use, or are held for sale, are valued
indefinite, while licenses in Scotland and Canada are automatically                 individually.
renewed as long as operations are run with negligible impact to the
environment. The licenses are assessed as having an indefinite life and
are not subject to amortization, but an impairment test is performed
annually. Impairment write-downs are reversed if the value recovers.

     Marine harvest

     Leasing                                                                              Valuation model The valuation is completed for each business unit and
     Assets leased on terms that largely transfer rights and obligations to the           is based on biomass in sea for each seawater site. The specification of
     Group (financial leasing) are capitalized as tangible assets, and the financial      biomass includes total number of fish, estimated average weight and the
     obligations are recognized as other non-current debt. Other lease expenses           cost of the biomass. In the calculation, the value is estimated by estimating
     are classified as regular leasing costs, and presented as ordinary operating         a value for the total kilo of biomass. Number of kilo biomass is multiplied
     expenses (operational leasing).                                                      by a value per kilo that reflects the market price. The market price is
                                                                                          derived from a range of prices, normally a combination of achieved prices
     leased items classified as assets are subject to depreciation according to           last month and the most recent contract entered into. For Marine Harvest
     the useful life of the asset, and the leasing liabilities are reduced with the       Norway quoted forward prices (from Fishpool) are also included in the
     leasing fees paid, net of deduction of interest.                                     calculation. The valuation takes into consideration that not all the fish are of
                                                                                          the same quality.
     Inventories comprise feed, goods in progress, packaging materials and                fiXed price contracts
     finished goods. Inventories of goods are measured at the lower of cost and           The company holds long term sale contracts related to salmon products.
     net realizable value.                                                                These contracts do not contain any elements of embedded derivatives and
                                                                                          are therefore not treated as financial instruments. The contracts are settled
     The cost of finished goods includes direct material costs, direct personnel          based exclusively on the assumption that or delivery of salmon products
     expenses, and indirect processing costs (full production cost). Interest costs       should take place. The contracts are not tradable, nor do they contain a clause
     are not included in the inventory value. The cost price of purchased goods is        for net settlement in cash or cash equivalents.
     the actual purchase price. The cost is based either on the principle of first-in
     first-out or weighted average.                                                       Provisions are made for onerous fixed-price contracts that oblige the
                                                                                          company to sell fish at a price lower than the carrying amount plus expected
     If fish farmed by the Group is included in inventory as raw material for             costs to harvest.
     further processing in one of the Groups processing entities, such fish is
     included in inventory with its fair value when put to inventory.                     cash and cash eQuivaLents
                                                                                          Cash and short-term deposits in the statement of financial position
     BioLogicaL assets                                                                    comprise cash at hand and in banks and short-term deposits which without
     Biological assets comprise eggs, juveniles, smolt and fish in the sea.               significant currency risk can be converted to cash within three months.
     Biological assets are measured at fair value less cost to sell, unless the fair
     value cannot be measured reliably. Broodstock, smolt and small live fish are         taXes
     measured at cost less impairment losses. live fish over approximately 1 –            Taxes for the year in profit or loss comprise taxes on the taxable profit for
     1.5 kilo is measured at fair value less cost to sell.                                the year, changes in deferred taxes and adjustments in previous year’s
                                                                                          taxes. Taxes on transactions that are recorded in other comprehensive
     Effective markets for sale of live fish do not exist so the valuation of live fish   income or directly in equity do not form part of the tax expense for the year.
     under IAS 41 implies establishment of an estimated fair value of the fish in
     a hypothetical market. The calculation of the estimated fair value is based          Tax payable is calculated using the nominal tax rate for the relevant tax
     on market prices for harvested fish and adjusted for estimated differences           jurisdiction at the end of the reporting period.
     in accordance with IAS 41.18 b). The prices are reduced by harvesting
     costs and freight costs to market, to arrive at a net value back to farm.            Deferred tax is calculated on the basis of temporary differences between
     The valuation reflects the expected quality grading and size distribution.           accounting and taxation values at the close of the accounting year. Deferred
     Further the valuation will take into account the stage in the life cycle, actual     tax liabilities are recognized for all taxable temporary differences, except
     size and expected harvest weight of the fish. The change in estimated fair           where the deferred tax liability arises from the initial recognition of goodwill
     value is recognized in profit or loss on a continuous basis, and is classified       or of an asset or liability in a transaction that is not a business combination
     separately (not included in the cost of the harvested biomass). At harvest,          and, at the time of the transaction, affects neither the accounting profit
     the fair value is reversed on the same line in profit or loss.                       nor taxable profit and loss. Deferred tax assets arise from temporary
                                                                                          differences that give rise to future tax deductions. Deferred tax assets are
     Biomass acquired trough business combinations are carried at full                    only recognized in the statement of financial position if it is likely that it can
     production cost plus fair value adjustment. When this fish is harvested              be utilized directly or by netting a deferred tax liability.
     and sold, the cost of production is classified in comprehensive income as
     cost of goods sold and the fair value adjustment on this fish when acquired          Tax increasing and tax decreasing temporary differences are offset against
     through a business combination is classified as “fair value (excess of cost)         each other to the extent that the taxes can be netted within one tax regime.
     on biomass acquired and harvested”.

30   ANNUAl rePOrT 2009
pension pLans                                                                      Costs related to restructuring are classified on a separate line in profit or
Contribution plans Obligations to make payments to contribution                    loss.
plans are expensed when they occur. Under these pension schemes, the
employer has no obligations other than making regular payments according           share Based payMents
to agreement.                                                                      The Group has a share option scheme which can be settled in cash (‘cash-
                                                                                   settled transactions’). The fair value of the options is recognized as a payroll
Defined benefit plans Pension schemes where the employer has                       expense and as a liability. The fair value of the options are measured at the
guaranteed the beneficiary a defined benefit from the plan are accounted for       end of each reporting period and are distributed over the period until the
based on the net present value of liability for the company. The net liability     employees have earned an unconditional right to receive them.
in each scheme is defined as the difference between the net present value
of the liability in the scheme and the fair value of the assets available in the   cash fLow stateMent
pension scheme. The net obligation is calculated using actuarial assumptions       The cash flow statement is prepared in accordance with the indirect method
and expertise. The change in net liability is recorded in the accounts at every    and shows cash flow from operations, from investments and from financing.
reporting date.
                                                                                   Cash and cash equivalents comprise cash, bank deposits, and other short-
provisions for LiaBiLities                                                         term, liquid investments that can be rapidly converted into cash.
A provision is recognized in the accounts if the company has a legal or
constructive/self-administered obligation related to a past event, and it is       Cash flow effects from merged or acquired companies are included as of the
likely that the obligation will lead to a financial outflow for the company.       time the companies were integrated for accounting purposes. The net cash
long-term provisions are valued based on discounted expected cash flows.           effect from the consolidation of the acquired company, e.g. the cash outlay
                                                                                   in the acquisition less the cash available in the acquired entity at acquisition is
restructuring costs                                                                presented as net cash effect on business combinations, and is presented as
Provisions for restructuring costs will be recognized if the company has           part of cash flow from financing.
published or started, within the end of the reporting period, a restructuring
plan which identifies what parts of the company, approximately how many            Paid interest is in the cash flow statement included in the cash flow related
employees that will be affected, the actions that will be taken, and when          to financing activities. Purchase and sale of shares is classified as investment
the plan will be implemented. Provisions are recognized only for costs that        activities in the cash flow statement. Cash flow in discontinued operations is
cannot be associated with future earnings.                                         not included in the cash flow statement.

3 Accounting estimates
The preparation of financial statements in accordance with IFRS requires           Information regarding key assumptions and key sources of estimation
management to make judgments, estimates and assumptions that affect                uncertainty which have a significant risk of causing a material adjustment to
the application of accounting principles and carrying amounts of assets and        the carrying amount of assets and liabilities within the next financial year are
liabilities, income and expenses. The estimates and underlying assumptions         covered in following notes:
are based on past experience and other factors perceived to be relevant
and probable when the judgments were made. Estimates are reviewed                     - Note 13 Taxes
on an ongoing basis and actual values and results may deviate from these              - Note 16 Intangible assets
estimates. Revisions to accounting estimates are recognized in the period in          - Note 21 Biological assets
which the estimates are revised.                                                      - Note 31 Contingent liabilities

Information regarding critical judgments in applying accounting policies that
have the most significant effect on the amounts recognized in the financial
statements are covered in following notes:

   - Note 21 Biological Assets
   - Note 28 Financial instruments

     Marine harvest

     4 Consolidated entities

     The consolidated financial statements include the following companies:

     parent coMpany                                                                           country
     Marine Harvest ASA                                                                         Norway

     suBsidiaries - norway                                                                    country       ownership %
     Marine Harvest Holding AS                                                                  Norway         100.00 %
     Kinn Salmon AS                                                                             Norway         100.00 %
     Marine Harvest Norway AS                                                                   Norway         100.00 %
     Marine Harvest Ingredients AS                                                              Norway         100.00 %
     Sterling White Halibut AS                                                                  Norway         100.00 %
     Imsland Smolt AS                                                                           Norway         100.00 %
     Marine Harvest Minority Holding AS                                                         Norway         100.00 %
     Marine Harvest Terminal AS 1)                                                              Norway          49.00 %
     Marine Harvest labrus AS                                                                   Norway         100.00 %

     suBsidiaries - aMericas                                                                  country       ownership %
     Marine Harvest Canada Inc.                                                                 Canada         100.00 %
     Marine Harvest North America Inc.                                                          Canada         100.00 %
     Marine Harvest USA Holding llC                                                                USA         100.00 %
     Ducktrap River of Maine llC                                                                   USA         100.00 %
     Marine Harvest USA llC                                                                        USA         100.00 %
     Heartland Enterprises ltd.                                                    British Virgin Islands      100.00 %
     Salmoamerica ltd.                                                             British Virgin Islands      100.00 %
     Marine Harvest Insurance NV                                                   Netherlands Antilles        100.00 %
     Cultivadora de Salmones linao S.A                                                             Chile       100.00 %
     Fjord Seafood Chile S.A.                                                                      Chile       100.00 %
     Salmones Americanos S.A                                                                       Chile       100.00 %
     Salmones Tecmar S.A                                                                           Chile       100.00 %
     Salmones lican S.A.                                                                           Chile       100.00 %
     Processadora De Productos Marinos Delifish S.A                                                Chile       100.00 %
     Marine Harvest Chile S.A                                                                      Chile       100.00 %
     Ocean Horizons S.A.                                                                           Chile       100.00 %
     Aquamerica International Holdings S.A.                                                     Panama         100.00 %
     Panamerica International Holdings S.A.                                                     Panama         100.00 %
     Salmoamerica Corp.                                                                         Panama         100.00 %

     suBsidiaries – asia                                                                      country       ownership %
     Marine Harvest Hong Kong Cy ltd                                                        Hong Kong          100.00 %
     Pan Fish Japan Co ltd.                                                                       Japan        100.00 %
     Marine Harvest Japan Inc                                                                     Japan        100.00 %
     South Sea Food KK                                                                            Japan        100.00 %
     Stolt Sea Farm KK                                                                            Japan        100.00 %
     Marine Harvest Korea Co. ltd                                                                 Korea        100.00 %
     Marine Harvest Singapore Pte ltd                                                         Singapore        100.00 %

          Marine Harvest has controlling interest in Marine Harvest Terminal AS.

32   ANNUAl rePOrT 2009
suBsidiaries - europe                      country      ownership %
Marine Harvest (Scotland) ltd               Scotland       100.00 %
Borsea Hatcheries ltd                       Scotland       100.00 %
Borsea ltd                                  Scotland       100.00 %
Eishken Estate ltd                          Scotland       100.00 %
Followstart ltd                             Scotland       100.00 %
Harlosh Salmon Company ltd                  Scotland       100.00 %
Marine Harvest (Properties) ltd             Scotland       100.00 %
McConnel Salmon ltd                         Scotland       100.00 %
Marine Harvest (Fort Williams) ltd          Scotland       100.00 %
Atlantic Sea Products ltd                   Scotland       100.00 %
Pairc Salmon ltd                            Scotland       100.00 %
Stolt Sea Farms ltd                         Scotland       100.00 %
Bradan (Maoil Rua) Teoranta                  Ireland       100.00 %
Bradan Fanad Teoranta                        Ireland       100.00 %
Bradan Prioseal Teoranta                     Ireland       100.00 %
Comhlucht Iascaireachta Fanad Teoranta       Ireland       100.00 %
Fanad Pettigo Teoranta                       Ireland       100.00 %
Feirm Farraige Oilean Chliara Teoranta       Ireland       100.00 %
Fanad Fisheries (Trading) ltd                Ireland       100.00 %
Silverking Seafoods ltd                      Ireland       100.00 %
Marine Harvest Faroes P/F                    Faroes         72.90 %
Belisco Ehf                                  Iceland       100.00 %
Marine Harvest Spain II. S.l.                 Spain        100.00 %
Pieters Bresken BV                       Netherlands       100.00 %
Gebroeders Sterk Holding BV              Netherlands       100.00 %
Gebroeders Sterk Beheer BV               Netherlands       100.00 %
Sterk Specials BV                        Netherlands       100.00 %
Marine Harvest Sterk BV                  Netherlands       100.00 %
Marine Harvest International BV          Netherlands       100.00 %
Marine Harvest NV                        Netherlands       100.00 %
Marine Harvest Holland BV                Netherlands       100.00 %
Marine Harvest Pieters NV                   Belgium        100.00 %
Marine Harvest VAP Europe NV                Belgium        100.00 %
Marine Harvest Appéti’ Marine SAS            France        100.00 %
Marine Harvest Boulogne SAS                  France        100.00 %
Marine Harvest Rolmer SAS                    France        100.00 %
Marine Harvest lorient SAS                   France        100.00 %
J.l. Solimer SARl                            France        100.00 %
Marine Harvest Kritsen SAS                   France        100.00 %
Marine Harvest Rennes SAS                    France        100.00 %
Marine Harvest France SNC                    France        100.00 %
Marine Harvest VAP France SAS                France        100.00 %
Marine Harvest Kritsen Italy SRl                Italy      100.00 %
Marine Harvest Poland Sp. Zoo                Poland        100.00 %

     Marine harvest

     5 Business segments

     identification of segMents
     Marine Harvest has structured its operations in five main business units.                These other units include the farming operations in Ireland which produce
     Business unit MH Norway includes fish farming operations and sales                       conventional and organic salmon, the salmon farming operations in the
     operations in Norway, which produces and sells Atlantic salmon. The                      Faroes, the sales organization in Asia, the farming of Halibut in Norway
     operations in Norway also include processing facilities producing fillets.               as well as the Corporate head office. The total of these are presented as
     Business unit MH Chile includes the Group’s operations in Chile and in the               “Corporate/MH Other Businesses” below.
     US. Operations in Chile include fish farming, and processing facilities. In the
     US the Group has a sales office located in Miami and processing facilities
     in Maine, los Angeles and Miami. The business units MH Canada and MH                     accounting principLes appLied for the segMent reporting
     Scotland produce and sell Atlantic salmon.                                               The same accounting principles as described for the Group financial
                                                                                              statements have been applied for the segment reporting. Some corporate
     The business unit MH VAP Europe processes and sells elaborated seafood                   costs have been distributed to the segments (management fee), and are
     in the European market, of which approximately 60% is based on Atlantic                  presented as part of the income and expenses in the segments. Inter-
     salmon, approximately 20% on whitefish, and approximately 20% on other                   segment transfers or transactions are entered into under normal commercial
     seafood.                                                                                 terms and conditions, and the measurement used in the segment reporting
                                                                                              is the same as used for the actual transactions. Investments in the period
     In addition to the main business units the Group has a number of operations              comprises of additions to tangible and intangible assets.
     which are individually smaller, and are operated as separate businesses.

     Key figures By Business segMents for 2009
     (noK MiLLion)                                 Mh norway         Mh chiLe          Mh canada   Mh scotLand       Mh vap       corporate/       eLiMinations     totaL
                                                                                                                     europe        Mh other

     Sales revenues external customer                 4 483.3         2 258.3            1 197.6      1 057.9        4 078.6          1 424.5              0.0    14 500.2
     Sales revenues other divisions                   2 260.7             63.9             49.7         162.9            99.5           139.6        -2 776.3             -0.0
     revenue and other income                         6 744.0         2 322.2            1 247.3      1 220.8         4 178.1         1 564.2        -2 776.3     14 500.2

     Cost of material                                -3 894.4         -2 325.1           -681.2        -576.4        -2 783.3        -1 135.5        2 704.9      -8 690.9
     Fair value adjustment on biological assets         248.0             -8.4             50.7            8.8                -            2.1               -       301.2
     Other operating expenses                        -1 495.1           -267.9            -227.1       -318.1        -1 032.2          -344.5             69.2     -3 615.6
     Restructuring costs                                     -          -149.3                 -          -9.5          -10.2             -0.5               -       -169.5
     Income/loss from associated companies               68.7                   -              -             -            0.8                -               -           69.5
     Depreciation and amortization                     -264.8           -130.5            -107.6         -52.5          -83.2           -49.2              0.0       -687.7
     Impairment losses                                    -6.6         -334.9               -9.6          -2.7          -18.0             -1.3               -       -373.1

     earnings before interest and taxes (eBIT) 1 399.8                 -894.0             272.5         270.5           252.1            35.4             -2.2      1 334.1

     Operational EBITDA                               1 354.6           -270.8            339.0         326.3          362.7             84.2             -2.2     2 193.8
     Operational EBIT                                 1 089.8           -401.3            231.5         273.9          279.4             35.0             -2.2     1 506.1

     Assets                                         11 486.2          2 616.0           2 789.6       1 769.2        2 590.8          2 900.4        -3 763.0     20 389.3
     liabilities                                     -3 025.5         -1 618.3            -391.7       -388.7        -1 124.8        -6 095.6         3 715.8      -8 928.8

     Investment in associated companies                 517.5                   -           2.3              -                -            0.3               -           520.1

     Investments in the period                          353.4             37.1             53.2           76.1           84.7            38.9                -       643.4

     Harvest volume (tons)                           201 676          36 2041)           36 537        37 698                 -        14 985                -     327 100

     No of employees 31 December 2009 FTE               1 091             908               537           367          1 792              252                -       4 947

          Volume in MH Chile is sold volume. Harvested volume in MH Chile 2009 was 30 702 tons.

34   ANNUAl rePOrT 2009
Key figures By Business segMents for 2008
(noK MiLLion)                                Mh norway     Mh chiLe       Mh canada     Mh scotLand    Mh vap       corporate/     eLiMinations     totaL
                                                                                                       europe        Mh other

Sales revenues external customer              4 084.6       1 884.0        1 044.7          912.0      3 713.5         1 848.1                -   13 486.9
Sales revenues other divisions                1 466.2         263.9           61.8           76.6         56.2            76.5      -2 001.2                -
revenue and other income                      5 550.8        2 147.9       1 106.5          988.6      3 769.7         1 924.6      -2 001.2      13 486.9

Cost of material                              -3 186.3      -2 105.9         -707.0        -523.5      -2 585.9       -1 503.3       1 957.5      -8 654.4
Fair value adjustment on biological assets     -332.6            7.4          21.8           25.2               -         -0.6                -     -278.8
Other operating expenses                      -1 381.5        -449.7         -207.9        -320.1       -912.6          -305.6          43.7      -3 533.6
Restructuring costs                                  -        -213.4           -3.4          -20.2         -3.8           -0.2                -     -241.0
Income/loss from associated companies             -0.4                -           -              -         -0.9            7.1                -        5.8
Depreciation and amortization                   -241.7        -161.3          -84.1         -54.9        -93.9           -49.4                -     -685.3
Impairment losses                                -13.7      -1 549.9              -          -15.6         -0.4              -                -   -1 579.4

earnings before interest and taxes (eBIT)       394.6       -2 324.9         125.9           79.5        172.2            72.6              0.0   -1 479.8

Operational EBITDA                              983.0         -407.8         191.6          145.0        271.2           115.7              0.0    1 298.9
Operational EBIT                                741.3         -569.1         107.5           90.1        177.3           66.3               0.0      613.6

Assets                                        9 948.4       4 486.4         2 621.5       1 684.7      2 881.2         5 078.3      -3 964.0      22 736.4
liabilities                                   -3 711.3      -2 435.8         -347.4        -407.0      -1 369.4       -8 759.5       3 918.5      -13 111.9

Investment in associated companies              510.7                 -         2.4              -          0.1            0.3                -      513.5

Investments in the period                       399.1          144.1          63.5           88.8          47.7          48.6                 -      791.7

Harvest volume (tons)                         171 086       75 395 1)       36 050         32 341               -       11 751                -   326 623

No of employees 31 December 2008 FTE            1 057         3 045            520            383        1 730            336                 -      7 071

     Volume in MH Chile is sold volume. Harvested volume in MH Chile 2008 was 84 879.

reconciLiation Between segMent operationaL eBit to net earnings Before interest and taXes (eBit)
(noK MiLLion)                                                                                                                        2009              2008

Operational eBIT                                                                                                                  1 506.1            613.6
Fair value adjustment on biological assets                                                                                         301.2             -278.8
Restructuring costs                                                                                                                -169.5            -241.0
Income/loss from associated companies                                                                                               69.5                5.8
Impairment losses                                                                                                                  -373.1          -1 579.4
earnings before interest and taxes (eBIT)                                                                                         1 334.1          -1 479.8

revenue and other incoMe By custoMers’ Location
The table below presents the operating income for Marine Harvest split by main geographical markets.
(noK MiLLion)                                                                                                                        2009              2008

Norway                                                                                                                            1 356.4          1 078.9
Europe                                                                                                                            8 732.5           8 497.2
America                                                                                                                           3 478.0          2 884.5
Asia                                                                                                                               895.1             679.5
Other markets                                                                                                                       38.2             346.8
Total revenue and other income                                                                                                   14 500.2         13 486.9

     Marine harvest

     6 Salary and personnel expenses

     (noK MiLLion)                                                                                                 2009                      2008                    2007

     Wages and salaries                                                                                        -1 622.4                 -1 685.8                 -1 718.5
     Social security taxes                                                                                       -243.7                  -202.3                   -204.3
     Pension expenses                                                                                             -62.3                   -48.3                     -36.7
     Other benefits                                                                                              -239.0                  -203.4                   -205.5

     Total salary and personnel expenses                                                                       -2 167.4                 -2 139.8                 -2 165.0

     Average number of full-time employees                                                                       6 009                    7 904                    8 492

     At year-end 2009 there were 4 947 permanent full-time employees in the Group.

     7 remuneration to Group management
     Key personnel are, in addition to the Board, employees that have been                The corporate management team has individual contracts that regulates
     or are part of the corporate management team and have had substantial                salaries, bonuses and post-employment benefits.
     influence in important decision-making processes for the Group in the

     saLary and other Benefits paid (noK thousand)                                   saLary       Bonus         pension        other        totaL 2009     totaL 2008

     Group management:
     Group CEO 2009                                                                   3 593        1 000           73          1 220            5 885           3 900
     Group CFO                                                                        2 222          126           65               0              2 413        2 500
     Group Director Operations Canada, Scotland and Other Businesses                  1 803           53           61               0              1 917         1 700
     Director Corporate Development                                                   1 400            0           55               0           1 455               0
     Managing Director Business Unit MH Norway                                        1 830          358           71            162            2 421           2 300
     Managing Director Business Unit MH Americas                                      2 200          500            0               0           2 700           1 400
     Managing Director MH VAP Europe                                                  1 866          496          134             119              2 615        2 400

     Total remuneration                                                              14 914        2 533          459          1 501           19 406           14 200

     remuneration to Chief executive Officer 2009 Åse Aulie Michelet had                  Bonuses are awarded as a percentage of base salary. The CEO is entitled
     an annual salary of NOK 3.6 million and received NOK 1.2 million yearly for          up to a 50% annual bonus based on criteria set by the Board. Business Unit
     as contribution for her saving for retirement. In addition she received 2008-        Managing Directors and Senior Group Staff are entitled to a 30% bonus
     bonus payment of NOK 1 million in 2009. The bonus scheme is limited up               based on a mix of Group financial targets (70%) and personal targets (30%).
     to 50 percent of annual salary.                                                      Business Unit Management Team members are entitled to a 20% bonus
                                                                                          which is also based on Group financial performance and personal business
     Terms and agreements with key personnel The CEO and the Chairman                     targets. These targets are designed to further the objectives of the business
     of the Board decide the remuneration to key personnel. Key personnel                 and motivate key personnel to align their actions with the needs of the
     are defined as Business Unit Management Team members, Business                       business and to reward them for achieving budgeted goals.
     Unit Managing Directors, and Senior Group Staff. In principle, wages are
     set using well-known job weighing techniques and salary scales based                 Bonus paid out in 2009 relates mainly to results and performance in 2008
     on regional compensation trends. The salary policy is designed to provide            and the bonus is calculated in line with the contracted criteria’s.
     fair wages and attract the right competence. The salary policy will allow            In 2008 a new share based incentive program was established. Further
     the Group to compete in the labour market and should attract and hold                information about this new program is given in note 8.
     employees, but the primary focus of the company is to provide significant
     and meaningful work in a leading seafood company. Salary increases are
     based on achieved results and contribution to the business.

36   ANNUAl rePOrT 2009
Other remunerations for CFO and Group Director Operations Canada,                      Severance Pay The company can enter into employment agreements
Scotland and Other Business Group CFO is entitled to a contribution for                that grant key personnel the right to severance pay. Further, if a person in
saving for retirement and has agreed on the terms. In 2009 NOK 1.4 million             management is deprived of position, whether actual or de facto, the health
was recognized as a provision for the period August 2007 to December                   and safety work act mitigates with the right to receive severance pay. An
2009, which will be disbursed in 2010. Going forward Marine Harvest                    appointment in a new position in another company will normally lead to a
ASA will annually pay approximately NOK 0.6 million as contribution for his            proportional reduction in the severance payment. In special circumstances
saving for retirement.                                                                 and during staff reductions, severance pay can be agreed for staff leaving
                                                                                       voluntarily. Severance pay may not apply where there are pre-agreed
Group Director Operations Canada, Scotland and Other Business is entitled              contractual or other negotiated terms of agreement for dismissal.
to an individual pension plan. In 2009 NOK 1.4 million was recognized as a
provision for the period from 2006 to 2009. Going forward Marine Harvest               In the agreements with the key personnel, conditions relating to terminal
ASA will annually make a provision of approximately NOK 0.4 million as                 payments based on base salary are included, given fulfilment of certain
contribution for his saving for retirement.                                            conditions. No key personnel are entitled to terminal payment for a longer
                                                                                       period than two years from termination of employment.
Pensions The corporate management team is included in defined
contribution plan where the contribution is limited to 6.5% of salaries
up to NOK 0.9 million (12 G.) Payments made on pension plan for the
key personnel are included in the figures presented above. For further
information about pensions, please refer to note 11.

fees paid to the Board of directors
Total fees to the Board of Directors amounted to NOK 3.5 million in 2009 and NOK 2.8 million in 2008.

Board fees, paid (noK thousand)                                                                                                                                2009
Ole Eirik lerøy (Acting Chairman of the Board)                                                                                                                  175
Svein Aaser (Prior Chairman of the Board)                                                                                                                       750
leif Frode Onarheim 2)                                                                                                                                          413
Solveig Strand 3)                                                                                                                                               350
Kathrine Mo                                                                                                                                                     138
Celina Midelfart                                                                                                                                                275
Thorleif Enger                                                                                                                                                  275
Cecilie Fredriksen 1)                                                                                                                                                 0
Turid lande Solheim 4)                                                                                                                                          275
Geir-Elling Nygård 4)                                                                                                                                           275
Frank Øren 4)                                                                                                                                                   275

Total board fees and other compensation                                                                                                                       3 200

     As of 31 December 2009 there is a provision of NOK 275 000 related to remuneration of Board members.
     Included in the payment to Leif Frode Onarheim was NOK 100 000 as remuneration as member of the audit committee
     Included in the payment to Solveig Strand was NOK 75 000 as remuneration as member of the audit committee
     Employee representatives in the Board of Directors, will in addition to board fee, receive salary as employees in the Group.

Loans to eMpLoyees
In 2009, employees in Norway were offered to buy shares in the company                 Excluding this there were no further loans at year end between the Group
for NOK 6000, with the amount deducted from the salary in 2010.                        and its employees at year-end.

At any time there will be minor receivables and payables between
employees and company related to travel reimbursement and similar issues.

     Marine harvest

     8 Share based payments

     share Based payMent for current                                                      between the market price for Marine Harvest ASA’s shares at this time and
     eMpLoyees in Marine harvest                                                          the determined subscription price multiplied by the number of allocated
     In the Ordinary General Meeting in 2007 it was decided to give the Board a           options. This amount will represent the bonus which the person in question
     detailed authorization to implement a share based incentive program for the          is entitled to. The bonus, minus the tax which the relevant person’s employer
     company’s management linked to a maximum of 35 million shares a year.                is obliged to withhold, will be paid to the entitled person, however so that the
     The authorization concerned one assignment per year for three years. The             person in question has undertaken to invest this amount in shares in Marine
     program should be a supplement to management’s salary and other bonus                Harvest ASA.
                                                                                          The company will assist in the completion of this investment, either by
     The following was authorized on the Ordinary General Meeting in 2008,                arranging for the purchase of shares in the market on behalf of the entitled
     emphasizing that the bonus could not exceed two years’ salary. The decision          person or by transferring the company’s own shares to this person at market
     has to be seen in connection with the decision on the Ordinary General               terms. The entitled person will undertake not to sell these shares until 12
     Meeting in 2007 (available on the company web page): “In the 1. quarter of           months after the acquisition”.
     2008, the Board of Directors in Marine Harvest ASA decided to implement a
     long-term incentive scheme for the Group’s senior executives based on the            On 28 March 2008, the Board of Directors in Marine Harvest ASA distributed
     development in Marine Harvest ASA’s share price.                                     30 750 000 such synthetic options at a subscription price of NOK 3.3239
                                                                                          to 87 employees in the Group, in which all of the senior executives were
     The scheme is based on the Board of Directors in Marine Harvest ASA                  included.
     assigning a certain number of synthetic options to subscribe for
     shares in Marine Harvest to individual employees, at a subscription price            On 26 June 2009 an additional 13 450 000 was awarded on the same terms
     corresponding to 107.5 % of the market price at the time of allocation.              as described above, with a subscription price of NOK 4.487 to 65 employees
                                                                                          in the group, in which all senior executives were included.
     The number of synthetic options assigned to each employee will vary based
     on the position and area of responsibility of the person in question. The            In 2009 the group has accrued NOK 24,8 million to meet the cost of these
     synthetic options will be settled 36 months after being allocated. The person        programs.
     entitled will then receive a cash amount corresponding to the difference

     The Group Management Team has the following synthetic options as of 31 December 2009:

     naMe and position                                                           nuMBer of options granted            eXercised            outstanding at year-end 2009

     Åse Aulie Michelet , CEO                                                                    4 500 000                     0                              4 500 000
     Jørgen K. Andersen, CFO                                                                     1 350 000                     0                              1 350 000
     Thomas Farstad, Group Director Operations Canada, Scotland and Other Business               1 125 000                     0                              1 125 000
     David Carnes, Director Corporate Development                                                  375 000                     0                                375 000
     Marit Solberg, Managing Director MH Norway                                                  1 350 000                     0                              1 350 000
     Alvaro Jimenez, Managing Director MH Chile                                                  1 125 000                     0                              1 125 000
     Jo Dekeyzer, Managing Director MH VAP Europe                                                1 125 000                     0                              1 125 000

     Total options                                                                             10 950 000                      0                            10 950 000

     At the beginning of the year 25 100 000 were outstanding, as a                       The right to the synthetic options will terminate without any compensation
     consequence of change in management 400 000 were forfeited during                    to the beneficiary if his/her employment with the Marine Harvest Group
     2009, and after the additional 13 450 000 awarded in June, the total number          ceases prior to the settlement date.
     of synthetic options outstanding were 38 150 000.                                                                                 .

38   ANNUAl rePOrT 2009
9 restructuring and exceptional items

restructuring: The Group had restructuring costs in the amount of NOK             Marine Harvest Norway suffered increased costs as a consequence of
169.5 million in 2009 mainly due to the down-sizing of the Chilean organiza-      sealice mitigation actions in the amount of NOK 17.3 million in 2009. In
tion.                                                                             addition, the unit culled/harvested out 1.4 million fish of approximately 1 kilo
During the second quarter, the business plan for Marine Harvest Chile was         to mitigate further spreading of PD in Region Mid. Total costs related to the
updated resulting in substantial accruals for restructuring related to site and   PD outbreak amounted to NOK 37.0 million.
plant closures as well as general down-sizing. Total restructuring costs
amounted to NOK 149.3 million in 2009.                                            In Marine Harvest Chile increased costs related to ISA amounted to NOK
                                                                                  517.5 million in 2009, of which NOK 302.9 million was due to mortality and
In Marine Harvest Scotland, restructuring costs amounted to NOK 9.5 million       write-down of biomass, NOK 149.3 net of currecy effects related to restruc-
in 2009 and related to site closures.                                             turing costs and NOK 55.7 million related to other exceptional items.

Restructuring costs in Marine Harvest VAP Europe amounted to NOK 10.2             For Marine Harvest Canada, the 2009 profit was affected by exceptional
million in 2009 and related to operational changes.                               customer claims and discards at harvest of NOK 63.0 million due to the
                                                                                  parasite Kudoa thyrsites.
exceptional items: In addition to the restructuring expenses, the 2009 ac-
counts contain several items that are considered exceptional relative to the      Marine Harvest decided in 2009 to discontinue its cod juvenile production
normal business. The total effect of exceptional items included in EBITDA         and find an alternative venue for the assets through the production of ballan
was NOK 657.2 million for the year.                                               wrasse. Due to a difficult market situation, the remaining cod juveniles were
                                                                                  culled, resulting in exceptional costs of NOK 22.4 million.

10 Auditor’s fees

fee to auditors 2009 (noK MiLLion)                                                                            ernst & young        other appointed auditors

Audit services                                                                                                           8.8                                 0.3
Other authorization services                                                                                             0.7                                   -
Tax advisory services                                                                                                    1.8                                   -
Other services non-audit related                                                                                         3.6                                 0.0

Total fees for 2009                                                                                                     14.9                                 0.3

fee to auditors 2008 (noK MiLLion)                                                                            ernst & young        other appointed auditors

Audit services                                                                                                           8.6                                 0.4
Other authorization services                                                                                             0.3                                   -
Tax advisory services                                                                                                    1.7                                 0.6
Other services non-audit related                                                                                         1.1                                 0.5

Total fees for 2008                                                                                                     11.7                                 1.4

fee to auditors 2007 (noK MiLLion)                                                                            ernst & young        other appointed auditors

Audit services                                                                                                           8.2                                 1.5
Other authorization services                                                                                             0.6                                   -
Tax advisory services                                                                                                    6.9                                 0.9
Other services non-audit related                                                                                         1.4                                   -

Total fees for 2007                                                                                                     17.1                                 2.4

Auditor’s fee is stated exclusive value added tax.

     Marine harvest

     11 Pensions

     defined Benefit pLans                                                          Contribution plan in Marine Harvest Norway Marine Harvest Norway
     Pensions are not a significant cost component or obligation in the financial   and subsidiaries have a defined contribution plan for 1 462 employees.
     statement, but the different schemes in the Group are explained below.         All employees with more than 20% positions are included in the scheme
                                                                                    where 4-8% of the salary up to 12 G is paid in by the employer. The cost of
     Pension scheme in Marine Harvest Norway Marine Harvest Norway                  the schemes was NOK 30.9 million in 2009.
     and subsidiaries have changed the pension agreement from defined
     benefit to defined contribution. There are still some defined benefit plans    Contribution plan in Marine Harvest Chile In Marine Harvest Chile, the
     in effect for e.g. retired employees and early retirement amounting to a net   pensions are generated by an individual mandatory savings account equal for
     pension liability of NOK 30.7 million. The plan includes a limited number of   all workers, legally defined. Every month 10% of the salary is deducted and
     employees at year-end 2009.                                                    sent to the administrator chosen by the worker.

     Pension scheme in Marine Harvest Scotland          Marine Harvest              Contribution plan in Marine Harvest Scotland         Marine Harvest
     Scotland participates in a pension scheme providing benefits based on final    Scotland operates a defined contribution pension scheme for 197
     pensionable pay which is now closed for further contributions. The scheme      members. The pension charge for the year represents contributions payable
     has 657 members. The pension liability is recognized with NOK 27 million.      by the company to the scheme, and was NOK 3.8 million in 2009.

                                                                                    Contribution plan in Marine Harvest Canada Marine Harvest Canada
     Pension schemes in France The entities in France have established              has a single defined contribution pension plan (DCPP) with 233 current
     agreements where the employees are entitled to payments after retirement       members. The plan is voluntary and employees can join after 2 years of
     according to a defined benefit plan, limited upward to maximum one             continuous service. The contribution rate is 6% by employer and 4% by
     year’s salary. There are 783 employees in France that are included in these    employee. There is no liability as the employee’s pension upon retirement is
     pension schemes, and the net obligations amount to EUR 1.15 million. The       based on the investment value of the contributions that were made during
     calculation is based on normal, actuarial assumptions. A discount rate of      their employment.
     6% and an expected increase in salaries of 3% are taken into consideration
     in the calculation. Estimated remaining average time to retirement in the      Contribution plan in Belgium A contribution plan for groups of employees
     schemes is 24 years.                                                           has been established in Belgium, covering 59 employees. The premium in the
                                                                                    scheme is calculated as a percentage of yearly salary, and both the company
     contriBution pLans                                                             and the employee contribute to the scheme. Any costs related to the plan are
     Contribution plan in Marine Harvest ASA In Marine Harvest ASA there            expensed when they occur. According to the law in Belgium the contribution
     is a defined contribution plan with 31 members. The cost is charged to         plan has a minimum return guarantee and in 2009 the return is in line with this
     the statement of comprehensive income. For 2009 the cost related to this       minimum guarantee.
     scheme was NOK 1.6 million.
                                                                                    Contribution plan Other businesses        The entities grouped under Marine
                                                                                    Harvest Other Businesses have contributions plans.

     12 Operating leases
     operating Leases and suBLeases (noK MiLLion)                                                                                             2009          2008

     Operating leases expensed                                                                                                                -35.3          -28.3
     Income from operating subleases                                                                                                            0.9            0.5

     Total net operating leases                                                                                                               -34.4         -27.8

40   ANNUAl rePOrT 2009
future payMents for operating Leases (noK MiLLion)                                                         2009       2008

Gross amount payable within 1 year                                                                         -30.4       -29.7
Gross amount payable within 1-5 years                                                                      -61.1       -77.1
Gross amount payable after 5 years                                                                         -60.1       -69.0

Total gross amount payable                                                                                -151.6      -175.8

future incoMe for operating suBLeases (noK MiLLion)                                                        2009       2008

Total future income for operating subleases                                                                  7.3       10.1

13 Taxes
taX for the year in the stateMent of coMprehensive incoMe (noK MiLLion)                         2009       2008        2007

Norway                                                                                            -2.4       -1.0      -16.6
Foreign units                                                                                    -18.4      65.2       -54.1

Tax on profits (current tax)                                                                     -20.8      64.2       -70.7

Norway                                                                                          -412.4     286.1      -244.8
Foreign units                                                                                    75.0       58.9      205.1

Change in deferred tax/tax benefit                                                             -337.5      345.0       -39.7

Total taxes related to profit for the year                                                      -358.3     409.3      -110.4

reconciLiation Between noMinaL and effective taX rate (noK MiLLion)                             2009       2008        2007

Profit before tax                                                                              1 660.5   -3 261.4     147.4
Nominal tax rate                                                                                 28%        28%        28%

Tax calculated with nominal tax rate                                                            -464.9     913.2       -41.3

Permanent difference reported by the entities                                                     -4.1      -32.0      -82.6
Withholding tax                                                                                   -2.3       -3.1       -6.0
Tax free gain/loss on sale of shares                                                               0.0      -57.7       -5.5
Recognition of deferred tax assets not recognized previously/use of losses not recognized 1)    196.5             -     59.8
Correction of earlier year's taxes                                                                 0.5            -     -6.8
Effects from different tax rate in the various juridistictions                                  -114.7    -272.1      -109.0
Other differences 2)                                                                             30.7     -139.0        81.0

Total actual tax in the statement of comprehensive income                                       -358.3     409.3      -110.4
     Use of tax losses not recognized includes tax positions in Japan and Norway
     Other differences include currency effects and temporary differences

     Marine harvest

     taX for the year recogniZed in coMprehensive incoMe (noK MiLLion)                                 2009         2008         2007

     Deferred tax related to income in comprehensive income                                           -248.1        401.3        -12.0

     taX prepaid/receivaBLe in the stateMent of financiaL position (noK MiLLion)                       2009         2008         2007

     Tax prepaid/receivable in foreign units                                                           108.6        201.8        122.3

     Total tax prepaid/receivable in the statement of financial position                               108.6        201.8        122.3

     taX payaBLe in the stateMent of financiaL position (noK MiLLion)                                  2009         2008         2007

     Tax payable in Norway                                                                                    -            -      32.4
     Tax payable. foreign units                                                                         50.8         69.9         43.3

     Total tax payable in the statement of financial position                                           50.8         69.9         75.7

     specification of deferred taX and Basis for deferred taX/taX assets taX increasing/(reducing)     2009         2008         2007
     teMporary differences (noK MiLLion)

     Non-current assets                                                                              4 957.4      5 013.4      6 171.3
     Current assets                                                                                  4 322.9      2 094.6      3 749.0
     Provisions for liabilities                                                                       -100.2       -257.0        116.1
     Tax losses carried forward                                                                      -4 746.4     -6 215.6     -4 839.1
     Other differences                                                                                   -7.2      -184.6          3.2

     Total temporary differences                                                                     4 426.5        450.8      5 200.5

     Tax losses carried forward in Norway                                                            -4 137.8     -4 518.6     -4 053.0
     Other temporary differences in Norway                                                           5 924.5      3 179.5      5 820.1
     Tax losses carried forward abroad                                                                -608.6      -1 697.0      -786.1
     Other temporary differences abroad                                                              3 248.3      3 486.8      4 219.5

     Total temporary differences                                                                     4 426.5        450.8      5 200.5

42   ANNUAl rePOrT 2009
totaL deferred taX asset/LiaBiLities in the stateMent of financiaL position (noK MiLLion)                                    2009          2008           2007

Deferred tax assets                                                                                                           54.5         230.5           27.0
Deferred tax liabilities                                                                                                  -1 142.6        -732.9        -1 199.7
Net deferred tax in the statement of financial position                                                                   -1 088.1        -502.4        -1 172.7

The Group has capitalized considerable deferred tax assets related to              Deferred tax assets linked to tax losses are offset against deferred
tax losses carried forward. This is based on the expectation of sufficient         tax liabilities in the tax jurisdictions where acceptable, and remaining
earnings in the future, mainly in Norway, Netherlands and Canada where             deferred tax asset in the group accounts are mainly deferred tax assets
the majority of tax losses carried forward are located. In Norway tax              in Norway.
losses can be carried forward indefinitely, and in Canada also for more                  .
than 10 years. In addition substantial deferred tax liabilities linked to non-
current assets and current assets are recorded.

Maturity of taX Losses where                norway        aBroad       totaL       taX rates appLied (seLected countries)                      2009        2008
deferred taX Loss is recogniZed

To year
2010                                                  -        1.5         1.5     USA                                                            35%       35%
2011                                                  -        5.9         5.9     Japan                                                          42%       41%
2012                                                  -        3.6         3.6     Canada                                                         26%       28%
2013                                                  -            -           -   Belgium                                                        34%       34%
2014                                                  -            -           -   France                                                         33%       33%
2015                                                  -            -           -   Scotland                                                       28%       28%
2016                                                  -            -           -   Norway                                                         28%      28%
2017                                                  -            -           -   The Netherlands                                                26%       26%
2018                                                  -      210.5      210.5      Poland                                                         19%       19%
2019                                                  -            -           -   Faroe Islands                                                  18%       18%
>2019                                                 -      141.8      141.8      Chile                                                          17%       17%
Unlimited                                      4 137.8       245.2     4 383.0     Ireland                                                        10%       10%

Total                                          4 137.8       608.6     4 746.4

Maturity of taX Losses for which            norway        aBroad       totaL
no deferred taX asset is recogniZed

To year
2010                                                  -        0.5         0.5
2011                                                  -       32.1       32.1
2012                                                  -       58.5       58.5
2013                                                  -       19.4       19.4
2014                                                  -            -           -
2015                                                  -       12.2       12.2
2016                                                  -       52.9       52.9
2017                                                  -        2.4         2.4
2018                                                  -            -           -
2 019                                                 -            -           -
>2019                                                 -            -           -
unlimited                                             -       27.3       27.3

Total                                                 -      205.2      205.2

     Marine harvest

     14 earnings per share
     earnings per share/diLuted earnings per share (noK MiLLion)                    2009          2008                2007

     Profit for the year after tax                                                1 296.3       -2 852.6                5.5
     Profit for the year from continuing operations                               1 296.3       -2 852.6               37.4
     Profit for the year from discontinued operations                                      -              -           -31.9

     Time-weighted average of shares issued and outstanding (million) 1)          3 536.0        3 478.9            3 477.7
     Diluted number of shares (million) 2)                                        3 536.0       3 478.9             3 481.2

      = earnings per share (NOK)                                                     0.37          -0.82               0.00
      = Diluted earnings per share (NOK)                                             0.37          -0.82               0.00

      = earnings per share from continuing operations (NOK)                          0.37          -0.82               0.01
      = Diluted earnings per share from continuing operations (NOK)                  0.37          -0.82               0.01

      = earnings per share from discontinued operations (NOK)                              -              -           -0.01
      = Diluted earnings per share from discontinued operations (NOK)                      -              -           -0.01

          deterMination of average nuMBer of shares (noK MiLLion)                   2009          2008                2007

     Number of shares outstanding as of 01.01                               3 478 898 329 3 478 898 329       3 472 648 331
     Exercise of stock options, 12.03.07 - 6 250 000 shares                                                       5 017 361
     Private placement, 27.05.09 - 96 000 000 shares                          57 066 667

     Average number of shares outstanding                                   3 535 964 996 3 478 898 329       3 477 665 692

     Number of shares as of 31.12                                           3 574 898 329 3 478 898 329       3 478 898 329

          deterMination of diLuted average nuMBer of shares (noK MiLLion)           2009          2008                2007

     Average number of shares outstanding, calculated above                 3 535 964 996 3 478 898 329       3 477 665 692
     Potential shares                                                                  0              0           3 516 827

     Diluted number of shares                                               3 535 964 996 3 478 898 329       3 481 182 519

44   ANNUAl rePOrT 2009
15 The share and shareholders
the share (noK MiLLion)                                           2009         2008

Total number of shares (thousand)                             3 574 898    3 478 898
Nominal value as of 31.12 (NOK)                                    0.75         0.75
Share capital (total number of shares at nominal value)       2 681 174    2 609 174
Share premium reserve                                         5 917 540    8 692 774
Other paid-in capital                                         3 022 719      22 719

Total paid-in capital                                        11 621 433   11 324 667

overview of the Largest sharehoLders 31.12.2009:               shares     owner's
                                                                          share %

Geveran Trading Co ltd                                    1 071 232 775      29.97%
Folketrygdfondet                                            188 115 925       5.26%
Bank of New York Mellon SA/NV                              149 404 381        4.18%
Morgan Stanley & Co International. PlC                      129 565 382       3.62%
Dnb NOR Bank ASA                                            113 016 777       3.16%
State Street Bank and Trust Co                              77 421 330        2.17%
Fidelity Funds                                              66 321 101        1.86%
Bank of New York Mellon SA/NV                               59 951 375        1.68%
Clearstream Banking S.A.                                    58 530 886        1.64%
Skagen Kon-Tiki                                             57 780 000        1.62%
State Street Bank and Trust Co                              56 053 537        1.57%
Citybank N.A. New York Branch                               54 643 663        1.53%
Bank of New York Mellon SA/NV                               44 144 683        1.23%
State Street Bank and Trust Co                              39 848 730        1.11%
Deutche Bank AG london                                      34 963 351       0.98%
Deutche Bank AG london                                      29 954 001        0.84%
JPMorgan Chase Bank                                         29 726 906       0.83%
MP Pensjon                                                  24 658 000       0.69%
Societe Generale Global Sec. Serv                           24 354 986       0.68%
Statoil pensjon                                             23 306 743        0.65%

Total 20 largest shareholders                             2 332 994 532     65.26%

Total other                                               1 241 903 797      34.74%

Total number of shares                                    3 574 898 329

sharehoLders per country                                       shares     owner's
                                                                          share %

Cyprus                                                    1 071 242 775      29.97%
Norway                                                      845 345 946      23.65%
Great Britain                                              654 006 141      18.29%
Belgium                                                     417 385 080      11.68%
USA                                                         361 528 942      10.11%
Other countries                                            225 389 445       6.30%

     Marine harvest

     shares owned By Board MeMBers, group ManageMent and their reLated parties as of 31.12.2009                                                            shares
     The Board of Directors own 11 633 000 shares directly and indirectly. Group management own 2 450 968 shares.

     Board of Directors
     Ole Eirik lerøy (Acting Chairman of the Board)                                                                                                     10 220 000
     leif Frode Onarheim                                                                                                                                   300 000
     Solveig Strand                                                                                                                                          20 000
     Thorleif Enger                                                                                                                                                   0
     Celina Midelfart                                                                                                                                    1 000 000
     Cecilie Fredriksen¹)                                                                                                                                             0
     Frank Øren                                                                                                                                                       0
     Geir Elling Nygård                                                                                                                                               0
     Turid lande Solheim                                                                                                                                     38 000
     Tor Olav Trøim                                                                                                                                           5 000
     Svein Aaser (retired Chairman of the Board)                                                                                                             50 000

     Group management
     Åse Aulie Michelet, CEO 2009                                                                                                                           139 756
     Jørgen Andersen, CFO                                                                                                                                    51 756
     Thomas Farstad, Group Director Operations Canada, Scotland & Other Businesses                                                                           40 000
     Marit Solberg, Managing Director MH Norway                                                                                                                       0
     Alvaro Jimenez, Managing Director MH Chile                                                                                                          1 957 700
     Jo Dekeyzer, Managing Director MH VAP Europe                                                                                                            10 000
     David Carnes, Director Corporate Development                                                                                                           251 756

     Total number of shares held by Board members and Group management                                                                                  14 083 968
     Total number of shares held by Board members and Group management in % of total outstanding shares                                                      0.39%
          Cecilie Fredriksen is a member of the class of Beneficiaries of the Trusts which indirectly control Geveran Trading Co Limited

     sharehoLders rights                                                                authoriZation to raise convertiBLe Loans
     There are currently no limitations in voting rights or trade limitations related   The Board is given the authorization to raise convertible loans not exceeding
     to the Marine Harvest share.                                                       NOK 2 200 000 000 and not exceeding 440 000 000 shares representing an
                                                                                        increase in the Company’s share capital of maximum of NOK 330 000 000.
     authoriZation to increase the share capitaL                                        The authorization is valid until the Annual General Meeting in 2010 subject
     The Board of Directors is granted an authorization to increase the                 to expiry on 30 June 2010.
     company’s share capital through issuance of new shares with an aggregate
     nominal value of up to NOK 260 917 350 divided into 347 889 800 shares,            trs agreeMents
     with a nominal value of NOK 0.75 per share.                                        Gerevan Trading Co ltd hold TRS agreements with an underlying exposure
     The term of this authorization shall last until the Annual General Meeting in      to 100 million shares.
     2010, however, no longer than until 1 July 2010.
                                                                                        synthetic stocK option arrangeMents
     power of attorney to repurchase own shares                                         In the Ordinary General Meeting in 2007 it was decided to give the Board a
     The Board is granted a power of attorney to purchase shares in the                 detailed authorization to implement a share based incentive program for the
     company up to a maximum total nominal value of NOK 260 917 350, which              company’s management linked to a maximum of 35 million shares a year.
     equals approximately 10 percent of the current share capital. The shares           Further information about this program is given in note 8.
     may be purchased at a maximum price of NOK 12 per share and a minimum
     price corresponding to their nominal value, NOK 0.75 per share.
     This power of attorney shall remain in force until the Annual General
     Meeting in 2010, however no longer than 1 July 2010.

46   ANNUAl rePOrT 2009
16 Intangible assets
specification of intangiBLe assets (noK MiLLion)                                     goodwiLL                 Licenses               other intan-             totaL
                                                                                                                                     giBLe assets

                                                                                   2009        2008        2009       2008        2009        2008        2009        2008

Acquisition cost as of 01.01                                                  4 697.1        4 206.5    6 757.8     6 319.1      285.1       222.6 11 740.0 10 748.2
Additions in the year as a result of acquisitions                                                   -                  15.3                         -         -        15.3
Additions in the year                                                                0.1         1.0                                  3.9       6.2         4.0         7.2
Reclassification                                                                                                        -0.3                   12.2           -        11.9
Disposals in the year                                                                               -       -0.1           -         -0.3      -1.5        -0.4        -1.5
Foreign currency adjustments                                                  -383.9          489.6      -395.3      423.7        -29.9       45.6       -809.1    958.9

Total acquisition cost as of 31.12                                           4 313.3         4 697.1    6 362.5     6 757.8      258.7       285.1 10 934.5 11 740.0

Accumulated amortization and impairment losses as of 01.01                    2 457.2         861.9       991.2      752.5       125.1        86.7      3 573.6   1 701.1
Amortization in the year                                                                            -        2.7         3.7         13.3     13.0         16.0        16.7
Impairment losses in the year                                                               1 308.4                   192.1           0.8           -       0.8   1 500.5
Accumulated amortization and impairment losses on disposals                                                 -0.4                     -0.3      -1.4        -0.7         -1.4
Foreign currency adjustments                                                      -286.5      286.9       -40.6        42.9       -16.1       26.8      -343.2      356.7

Total accumulated amortization and impairment losses as of 31.12              2 170.7       2 457.2       953.0      991.2       122.7       125.1      3 246.5   3 573.6

Total net carrying amount as of 31.12                                         2 142.6       2 239.9     5 409.5    5 766.6       136.0       160.0      7 688.0   8 166.4

intangiBLe fiXed assets in cash-generating units
The following units have significant carrying amounts of intangible assets

(noK MiLLion)                                                                                                                         goodwiLL               Licenses

                                                                                                                                  2009        2008        2009        2008

Marine Harvest Norway                                                                                                          1 553.2      1 553.2     3 116.1   3 118.6
Marine Harvest Chile                                                                                                                                -   1 370.3   1 655.7
Marine Harvest Scotland                                                                                                                             -    416.4      454.7
Marine Harvest Canada                                                                                                                22.1      23.1      438.9      458.6
Marine Harvest VAP Europe                                                                                                        567.3       663.6                          -
Other units                                                                                                                                         -      67.8        79.0
Total for the Group as of 31.12                                                                                                2 142.6      2 239.9     5 409.5   5 766.6

iMpairMent testing                                                                         The procedure of impairment testing
The Group tests intangible assets annually for impairment, or more frequ-                  Impairment testing is carried out by calculating the net present value of
ently if there are indications that the assets are impaired. The annual impair-            estimated future cash flows (value in use) for the cash generating unit in line
ment test is performed at year-end. Marine Harvest has substantial assets                  with IAS 36 and comparing the net present value of the cash flow towards
with indefinite lives in the form of licenses. The licenses are subject to                 the carrying amount of net assets held by the cash generating unit (CGU). If
impairment testing in combination with goodwill in the annual test. Marine                 the carrying amount is higher than the calculated value in use, a write-down
Harvest has identified its’ operating units in different countries as its’ cash            to the calculated value in use is made.
generating units, but in situations where the different countries are monito-
red and combined as one segment, the intangible assets are monitored and                   The estimated cash flows are based on the assumption of continued opera-
tested for the relevant group of cash generating units (e.g. Marine Harvest                tion as part of the Marine Harvest Group. The basis for the estimated cash
VAP Europe and Marine Harvest Chile). A group of cash generating units                     flows are the confirmed budgets for 2010 and the strategic plan for the follo-
is never larger than an operating segment as defined in IFRS 8 Operating                   wing 4 years. The strategic plans have been reviewed and the targets appro-
segments and corresponds to the unit structure used for internal follow up                 ved by Group management. For CGU Marine Harvest Chile - the impairment
and monitoring.                                                                            test is based on 8 years of validated figures as it is assumed that rebuilding

     Marine harvest

     the unit will take longer than 5 years. Growth after the fifth year in the         Discount rate: The discount rates are based on the Weighted Average Cost
     calculation is set independently for each cash generating unit based on the        of Capital (WACC). The cost of debt is based on the risk free rate in the
     expected growth potential, capacity etc. The maximum growth rate applied           applicable country. In the model, the average of the 10 and the 30 year risk
     beyond the 5 (8) year period in the 2009 impairment test is 2.5%. This is          free rates has been used as the risk free rate, if both figures are available,
     lower than the expected growth rates in the first 5 (8) years.                     otherwise the 10 year risk free rate has been applied. The calculation of the
                                                                                        final discount rates (WACC) also take into account market risk premium,
     Indications of impairment                                                          debt risk premieum, the gearing and beta value. The values used have been
     At year-end 2009 there were no indications that the Group’s assets on              reviewed/ compared with external sources for reasonableness.
     consolidated level should be impaired. The book value of equity for Marine
     Harvest Group was lower than market value of the Group’s equity and the            Infinite growth rates are set independently for each cash generating unit,
     market value has continued to increase in 2010. The impairment testing at          maximum 2.5%.
     year-end did not result in identification of impairment losses.
     As part of the Chilean business plan update in the second quarter of 2009,         In connection with the impairment testing of intangible assets, sensitivity
     intangible assets were tested for impairment to evaluate if the cash flows         analysis has been carried out. The value in use has been determined based
     from a conservative rebuilding process were sufficient to support the carry-       on future strategic plans considering the expected development in both
     ing amount of net assets. The test confirmed the asset values.                     macroeconomic and company related conditions. Sensitivity analysis has
                                                                                        been performed for each of the defined cash generating units.
     Key assumptions of the impairment test at year-end 2009
     The key assumptions used in the calculation of value in use are harvest            Given the current strategic plans, all cash generating units have very high
     volume, EBITDA, capital expenditure, discount rates and the infinite growth        tolerance levels for changes to the assumptions. Excluding Chile, the cash
     rates.                                                                             flows have to decrease by more than 30% every year (including the indefi-
                                                                                        nite future) before assets are impaired in any unit. For the larger cash gene-
     Harvest volume: Harvested volume is based on the current stocking plans            rating units the cash flows have to fall significantly more before assets are
     for each unit and forecasted figures for growth and mortality.                     impaired. With regards to changes in the discount rate, the tolerance level is
                                                                                        even higher as the rate has to increase by approximately 40% before assets
     EBITDA/Margins: In the strategic plan process, prices and all cost elements        are impaired in any unit. For the larger cash generating units, the cost of
     were forecasted to arrive at the profit figures EBIT and EBITDA. It is expec-      capital must increase significantly more before assets are impaired.
     ted that the profit figures in the upcoming 5 year period will exceed the his-
     toric average due to limited growth potential in most countries except Chile       Also for Marine Harvest Chile there is substantial headroom when it comes
     where the rebuilding of the industry after the ISA challenges is expected to       to impairment given the biological development expected in Chile. However
     take time. Committed operational efficiency programs are taken into consi-         as there rests uncertainty with regards to the rebuilding of the entity and
     deration in the calculations. Changes in the outcome of these initiatives may      the effect of new regulations, CGU specific sensitivity has been included
     affect future estimated EBITDA margins.                                            for this entity. The following changes compared to the strategic plan would
                                                                                        generate a net present value of future cash flows equal to the asset value:
     Capital expenditure (Capex): In the 5 (8) year strategic plan period the capital     − A 2% increase in the discount rate
     expenditure necessary to meet the expected growth in revenue and profit is           − An infinite growth rate slightly on the negative side
     taken into consideration. The necessary capital expenditure is in compliance         − A reduction in EBITDA of approximately 20% every year (including the
     with current laws and regulations. Changes in the applicable laws and regu-             indefinite future)
     lations may affect future estimated capital expenditure needs.                       − An increase in the capital expenditure level of approximately 50% every
                                                                                             year (including indefinite future)

48   ANNUAl rePOrT 2009
17 Property, plant and equipment
specification of property, pLant and eQuipMent (noK MiLLion)                                 property           pLant eQuipMent              totaL         totaL
                                                                                                                                              2009          2008

Acquisition cost as of 01.01                                                                     2 352.6        5 220.1         313.1       7 885.9        6 539.6
Additions in the year as a result of acquisitions                                                        -             -             -               -          3.4
Additions in the year                                                                                24.5          72.6         528.5         625.6          760.0
Reclassification                                                                                     75.6         274.7        -350.3                -        -11.9
Disposals in the year                                                                               -22.2        -359.6          -19.7        -401.5        -275.9
Foreign currency adjustments                                                                       -206.6        -554.7          -49.7        -811.0         870.7
Total acquisition cost as of 31.12                                                               2 223.9        4 653.1         422.0       7 299.0       7 885.9

Accumulated depreciation and impairment losses as of 01.01                                         947.8        2 477.5         217.0       3 642.2       2 644.9
Depreciation in the year                                                                           108.7         440.5          122.6         671.8          668.7
Impairment losses in the year                                                                       84.3          262.5          25.5         372.3           78.9
Accumulated depreciation and impairment losses on disposals                                         -21.6        -351.3          -17.4       -390.3         -244.4
Foreign currency adjustments                                                                        -97.9        -376.6         -40.6         -515.1        494.2
Total accumulated depreciation and impairment losses as of 31.12                                 1 021.3       2 452.6          307.1       3 780.9        3 642.2

Total net carrying amount as of 31.12                                                            1 202.7       2 200.5          114.9        3 518.1       4 243.6

Estimated lifetime                                                                            0-20 years     5-20 years     3-5 years
Depreciation method                                                                                linear        linear        linear

saLe of fiXed assets                                                                within the Group had limited potential. During the third and fourth quarter,
Tangible fixed assets have been sold throughout the year and net gain on            further analysis recognized a potential for transfer of some assets internally
sale of assets amounts to NOK 4.8 million in 2009. The corresponding                and as a result write-downs in the amount of NOK 41 million were reversed.
figure for 2008 was NOK 10.3 million.                                               Total asset write-down in Chile in 2009 thus amounted to NOK 335 million.

write-down of fiXed assets                                                          In Marine Harvest Canada write-downs in the amount of NOK 5 million
As stated in Note 2 - ”Significant accounting policies”, the carrying amounts       were recognized as a result of discontinued fresh water operations, while
of the Group’s assets are reviewed at the end of each reporting period to           NOK 4 million were related to impairment losses on other assets.
determine whether there are any indications that specific assets have suf-
fered an impairment loss.                                                           Marine Harvest VAP Europe recorded impairment losses of NOK 18 million
                                                                                    in 2009, mainly relating to a building in France and machinery/equipment in
As part of the business plan update in Marine Harvest Chile in the second           France and Belgium.
quarter all assets were reviewed and write-downs in the amount of NOK
376 million accounted for. It was at that time assumed that the assets              The remaining write-downs relate to impairment losses for assets sold in
would be of little value in Chile as all industry players had idle farming assets   Marine Harvest Norway and Marine Harvest Scotland in addition to the
in their possession as a result of the downscaled production after ISA out-         equipment lost when a feed barge sank on the Faroes in October.
breaks and emergency harvest. It was also assumed that transfer of assets

     Marine harvest

     18 Investments in associated companies

     Associated companies are companies where the Group has a significant           Associated companies are recorded in the Group accounts in accordance
     ownership interest, ranging from 20-50%, and where the Group is able to        with the equity method. None of the companies accounted for as associa-
     exercise significant influence.                                                ted companies are listed.

     associated coMpanies                     head         owner- owned By              acQuisition carrying share of divdends   other                      carrying
     (noK MiLLion)                            office         ship                             cost aMount      profit received changes                       aMount
                                                                                                      01.01.09   2009      2009    2009                       31.12.09

     Nova Sea As                              lovund          48% Marine Harvest Holding AS     205.2         406.7        64.0         22.4         0.1         448.4
     Finnøy Fisk AS                           Finnøy          45% Marine Harvest Norway AS        17.9          28.9         4.7             -       3.7          37.3
     Vågafossen Settefisk As                  Vikedal         48% Marine Harvest Norway AS         1.3           6.1           -             -       1.2           7.3
     Center for Aquacultural Competence AS Hjelmeland         33% Marine Harvest Norway AS         0.2          22.2         1.5             -      -2.2          21.5
     Helgeland Havbruksstasjon AS             Dønna           33% Marine Harvest Norway AS         2.7             -           -             -       2.7           2.7
     Others 1)                                                                                     3.6          49.6        -0.7             -    -46.0            2.9

     Total                                                                                      230.9         513.5        69.5         22.4      -40.5          520.1
          Includes divestment of Aqua Farms Vartdal

     19 Investments in other shares
     Shares and holdings where the Group does not have significant influence.
     sharehoLdings (noK MiLLion)                                                                nuMBer          owner acQuistion            changes         carrying
                                                                                              of shares           ship      cost           in MarKet         aMount
                                                                                                                                           vaLue 2009         31.12.09

     Aker Seafood ASA                                                                         10 092 923         11.9 %            284.8           20.7           79.5
     Aqua Gen AS                                                                                  403 342        15.2 %             25.0                -         25.0
     Stofnfiskur                                                                              10 633 341           7.8 %             6.0                -           6.0
     lighthouse Caledonia ASA                                                                  2 927 144           0.0 %            27.8           -1.5             0.8
     Other shares                                                                                                                    7.1                -           7.5

     Total carrying amount of other shares                                                                                         350.7           19.1          118.8
     The shares in Aker Seafoods ASA and lighthouse Caledonia ASA                   AS and Stofnfiskur are held at cost in lack of stock value. It has not
     are carried at fair value based on the market price for the shares at          been possible to measure fair value in a reliable way, but there are no
     the Oslo Stock Exchange at year-end 2009. The shares in Aqua Gen               indications of loss in value on the shares.

     20 Inventory
     (noK MiLLion)                                                                                                                               2009             2008

     Raw materials and goods in process                                                                                                          319.1           375.4
     Finished goods                                                                                                                              423.7           699.1

     Total carrying amount of inventory                                                                                                          742.7         1 074.5

     Raw materials include packaging materials and feed. Goods in process           concerned write-down in Marine Harvest Chile). The write-downs were
     includes semi-finished products and spare parts. Finished goods include all    a consequence of the extraordinary biological challenges in Chile, which
     products ready for sale.                                                       resulted in early harvest of small fish at a high cost.This fish proved difficult
                                                                                    to realize above full cost of production and write-downs to the estimated
     Write-down of finished goods due to the extraordinary biological               selling price were accounted for. Throughout 2009 a majority of the Chilean
     situation in Chile                                                             inventory has been sold and as a result accruals for write-down of finished
     As of 31 December 2008 accruals for write-down of finished goods and           goods and raw materials per 31 December 2009 has been reduced to NOK
     raw material inventory amounted to NOK 62.4 million (NOK 56.6 million          12.6 million, whereof NOK 10.3 million related to Marine Harvest Chile.

50   ANNUAl rePOrT 2009
21 Biological assets
reconciLiation of changes in carrying aMount of BioLogicaL assets                                                                  2009             2008
(noK MiLLion)

Carrying amount 01.01                                                                                                            5 620.6          5 553.9
Acquired entities in the year                                                                                                             -              0.7
Purchases                                                                                                                        5 842.0          7 035.2
Change in fair value                                                                                                               301.2           -278.8
Write-downs fish in sea in period                                                                                                 -212.1           -324.0
Costs of goods sold                                                                                                             -5 973.7         -6 611.5
Currency translation differences                                                                                                  -226.8            245.1

Total carrying amount of biological assets as of 31.12                                                                           5 351.1          5 620.6

fair vaLue adJustMents on BioLogicaL assets in the stateMent of financiaL position                                                 2009             2008
(noK MiLLion)

Marine Harvest Norway                                                                                                              661.6            413.2
Marine Harvest Chile                                                                                                                      -              9.3
Marine Harvest Canada                                                                                                              106.2                58.1
Marine Harvest Scotland                                                                                                             89.9                89.6
Marine Harvest Faroes                                                                                                                 6.2                3.4
Marine Harvest Ireland                                                                                                              59.2                51.8
Marine Harvest Other Businesses, ex MH Ireland and MH Faroes                                                                          5.3               22.3

Total fair value adjustment included in carrying amount in the statement of financial position                                     928.3            647.7

Biomass at cost                                                                                                                  4 422.8          4 972.9

Total biological assets                                                                                                          5 351.1          5 620.6

fair vaLue adJustMents on BioLogicaL assets in the stateMent of coMprehensive incoMe                               2009             2008                2007
(noK MiLLion)

Marine Harvest Norway                                                                                             248.0            -332.6           234.5
Marine Harvest Chile                                                                                                -8.4              7.4           -417.4
Marine Harvest Canada                                                                                               50.7             21.8           -188.1
Marine Harvest Scotland                                                                                              8.8             25.2                5.4
Marine Harvest Faroes                                                                                                3.5            -17.0                      -
Marine Harvest Ireland                                                                                              15.7             -1.7               24.8
Marine Harvest Other Businesses, ex MH Ireland and MH Faroes                                                       -17.1             18.1                -9.6

Total fair value adjustment in the statement of comprehensive income                                              301.2            -278.8           -350.4

The fair value adjustment to biomass amounted to an income of NOK 301.2     NOK 80.4 million related to acquired biomass. The cost of acquired biomass
million in 2009. There was no value adjustment related to acquired          was a result of the acquisition of Marine Harvest N.V in 2006 (total fair
biomass in the period. In 2008 the total fair value adjustment to biomass   value adjustment for acquired biomass amounted to NOK 830.4 million, of
amounted to a cost of NOK 278.8 million, including a cost of                which NOK 750.0 million was sold in 2007 and NOK 80.4 million in 2008).

     Marine harvest

     voLuMes of BioMass (tons)                                                                                                  2009             2008            2007

     Volume of biomass harvested during the year (gutted weight, HOG) 1)                                                     328 087          327 662         339 848
     Volume of biomass in the sea at year-end (live weight)                                                                  222 129          241 085         258 220

          Volume harvested for all entities except Marine Harvest Chile where the figure reflects volume sold. The figure includes Sterling White Halibut

     vaLuation of BioLogicaL assets                                                      Market price: The market price assumption is very important for the
     The accounting principles and the valuation model applied for valuation of          valuation and even minor changes in the market price will give significant
     biological assets are explained in note 2 – Significant accounting policies.        changes in the valuation. The methodology used for establishing the market
                                                                                         price is explained in note 2. If assumed that all fish per 31 December 2009
     assuMptions used for deterMining fair vaLue of Live fish                            were of harvest size and the volume is 222 129 tons live weight, a change
     The estimated fair value of biomass will always be based on uncertain               in the price of NOK 1 per kilo gutted weight would change the valuation by
     assumptions, even though the company has built substantial expertise in             NOK 184 million.
     assessing these factors. Estimates are applied to the following factors: bio-
     mass volume, quality of the biomass, size distribution and market prices.           write-down of BioMass
                                                                                         Write-downs of fish in sea may have two sources: extraordinary mortality
     Biomass volume: The biomass volume is in itself an estimate based on the            and impairment (if the cost of the biomass is higher than the expected reco-
     number of smolt put to sea, the estimated growth from the time of stock-            verable amount).
     ing, estimated mortality based on observed mortality in the period etc. The
     uncertainty with regards to biomass volume is normally low in the absence           Extraordinary mortality: Extraordinary mortality is accounted for when a site
     of incidents resulting in mass mortality early in the cycle or if the fish for      either experiences elevated mortality over time or massive mortality due to
     some reason has been sick or cannot be handled.                                     an incident on the farm (outbreak of disease, lack of oxygen etc). In 2009, all
                                                                                         farming units except Marine Harvest Scotland recorded extraordinary mor-
     The quality of the biomass: The quality of the biomass can be difficult to          tality losses. Reference is made to note 9 – Restructuring and exceptional
     assess prior to harvesting, especially if the reason for downgrading is rela-       items, where the most important losses are described.
     ted to flesh quality (e.g. the effect of Kudoa in Canada). In Norway downgra-
     ded fish is normally priced based on standard rates of deduction compared           Write-down of biomass: In situations where expected prices going forward
     to a Superior quality fish. For fish classified as ordinary the standard rate of    are very low or the cost of biomass is high the biomass might be impaired.
     reduction is NOK 1.50 – NOK 2.00 per kilo gutted weight. For fish classified        In such situations the biomass is written down to the expected recoverable
     as production grade the standard rate of reduction is NOK 5.00 – NOK 15.00          amount. During the last 2-3 years the industry has experienced a time of
     per kilo gutted weight depending on the reason for downgrading. In other            escalating costs of production in Chile due to ISA. In the business plan update
     countries the price deductions related to quality are not as standardized.          for Chile in second quarter in 2009 the biomass was considered to be sub-
                                                                                         stantially overstated compared to the recoverable amount and write-downs
     The size distribution: Fish in sea grows at different rates and even in a           in the amount of NOK 236 million were accounted for. Of these write-downs
     situation with good estimates for the average weight of the fish there can          NOK 145 million were reversed in the second half of the year, due to more
     be considerable spread in the quality and weight of the fish. The size distri-      favorable prices and better biological performance than anticipated in the
     bution affects the price achieved for the fish as each size category of fish        business plan. As of year-end 2009, the write-down remaining in the state-
     is priced separately in the market. When estimating the biomass value a             ment of financial position amounts to NOK 35 million while the remainder has
     normal distribution of size is applied.                                             been released to cover culling and actual losses during the year.

     22 restricted funds

     The Group held cash and cash equivalents at 31 December 2009 of NOK
     172.2 million, of which NOK 44.3 million are restricted funds. The majority
     of the restricted funds relates to withheld tax for employees in Norway

52   ANNUAl rePOrT 2009
23 Trade receivables and other receivables
specification of carrying aMount of receivaBLes (noK MiLLion)                                                                               2009               2008

Trade receivables                                                                                                                        1 687.1            1 919.2
Provisions for bad debts                                                                                                                    -15.0              -15.8

Net trade receivables                                                                                                                    1 672.1            1 903.4

Prepayments                                                                                                                                  60.8               86.0
Net value on currency hedging instruments                                                                                                   197.8                     -
Other                                                                                                                                      293.0              446.4

Other receivables                                                                                                                          551.6              532.4

Total trade receivables and other receivables                                                                                            2 223.7            2 435.8

age distriBution of trade receivaBLes (noK MiLLion)                                                                                         2009               2008

Receivables not overdue                                                                                                                  1 456.3            1 516.3
Overdue 0-6 months                                                                                                                         220.5              392.2
Overdue more than 6 months                                                                                                                   10.3               10.7

Total carrying amount of trade receivables                                                                                               1 687.1            1 919.2

MoveMent in provisions for Bad deBt trade receivaBLes                              currency eXposure to trade receivaBLes
At beginning of 2009 provisions for bad debt amounted to NOK 15.8 million.         The Group held trade receivables amounting to NOK 1 672.1 million at year-end.
In 2009 NOK 3.8 million was considered lost and thus written-off. After ad-
ditional provisions for losses of NOK 4.8 million in 2009, as well as NOK -1.8     The business units generally completes their sales in the main trading currency
million in currency effects, the provision for bad debt amounted to NOK 15.0       in the country of destination. Below is presented the carrying amount of trade
million at year-end 2009.                                                          receivables per business unit, and an indication of currency is given by refer-
                                                                                   ence to the markets where sales from the business unit generally are made.

Business unit (noK MiLLion)                              Main MarKets and currency                                                          2009                2008

Marine Harvest Norway                                    European market (EUR), US market (USD), Russia (USD) and Asia (JPY&USD)            474.8              524.4
Marine Harvest Chile                                     US market (USD), Brazil and Argentina (USD) and Asia (Yen)                         159.6              180.0
Marine Harvest Canada                                    US market (USD)                                                                    104.4              101.9
Marine Harvest Scotland                                  Domestic market (GBP) and European market (EUR)                                      88.4             110.7
Marine Harvest VAP Europe                                Belgium, France and Holland (EUR)                                                  718.1              855.7
Marine Harvest Other Businesses and eliminations                                                                                            126.8              130.7

Net trade receivables                                                                                                                     1 672.1            1 903.4

     Marine harvest

     24 Trade payables and other current liabilities
     trade payaBLes (noK MiLLion)                                                                                                               2009          2008

     Trade payables                                                                                                                           1 339.8       1 729.2

     Trade payables are non interest-bearing and are normally settled on 30-60 days terms.

     Other current liabilities
     Social security and other taxes 1)                                                                                                          63.6         60.3
     Accrued expenses 1)                                                                                                                       397.0         403.3
     Market value interest- and currency hedging instruments 2)                                                                                250.7        1 394.9
     Other liabilities 3)                                                                                                                      337.3         491.4

     Total other current liabilities                                                                                                         1 048.6        2 349.9

          Settlement will take place within 1-3 months.
          Calculated based on interest and currency exchange rates at the end of the year, representing the cost to the Group in case of a
          cancellation of the contracts at that point in time.
          Settlement will take place in 2010. This item consists of accruals for interest costs and different types of other costs, sales provisions etc.

     25 Current interest-bearing debt and unused drawing rights
     current interest-Bearing deBt to financiaL institutions (noK MiLLion)                                                                      2009          2008

     First years instalment on debt 1)                                                                                                           22.9        755.8
     Bank overdrafts                                                                                                                            107.2          16.6
     Other current interest-bearing debt                                                                                                          0.2        593.1

     Total current interest-bearing debt                                                                                                        130.3       1 365.5

          In December 2009 Marine Harvest prepaid all the installments due in 2010 to the lenders under its syndicated loan facility

     unused drawing rights (noK MiLLion)                                                                                                        2009          2008

     Unused part of bank overdraft facility (to be renewed within one year)                                                                      27.1        127.7
     Unused part of bank overdraft facility (to be renewed in more than one year)                                                              302.7         456.2
     Unused part of other drawing rights (to be renewed in more than one year)                                                                  824.3        246.4

     Total unused drawing rights                                                                                                              1 154.1        830.3

54   ANNUAl rePOrT 2009
26 Non-current interest-bearing debt
currency (noK MiLLion)                                                                         2009                  2009           2008                        2008
                                                                                     Borrowings in           Borrowings   Borrowings in                 Borrowings
                                                                                    LocaL currency                in noK LocaL currency                      in noK

NOK                                                                                               182.0                182.0                178.5                178.5
USD                                                                                               168.6                971.1                105.4                733.6
EUR                                                                                              443.8               3 681.6                630.8              6 121.0
CAD                                                                                                    -                   0.2                 2.6                 15.0
DKK                                                                                                39.3                   43.8               40.6                  53.0
GBP                                                                                                28.0                261.1                 39.5                402.3
Other currencies                                                                                       -                     -                     -                0.1

Total non-current debt and leasing liabilities to financial institutions                                             5 139.8                                   7 503.5

First years instalment on debt including leasing                                                                          22.9                                   755.8

Total non-current interest-bearing debt and leasing                                                                  5 116.9                                    6 747.7

The carrying amount of interest-bearing debt has been reduced by NOK                    interest-bearing debt and leasing. A significant part of the non-current
20.4 million in capitalised borrowing costs. There are no significant                   debt is described further in note 13 in the financial statement of the parent
differences between the carrying amount and fair value of non-current                   company.

the group’s repayMent scheduLe (noK MiLLion)                         2010            2011          2012            2013           2014          Later          totaL

Annual instalments, debt incl. leasing                               22.9          4 886.4          14.7            91.1           11.6            113.1       5 139.8

The loan agreements contains standard financial covenants related to solidity           justed by a number of items from the reported EBITDA. These adjustments
(equity ratio) and earnings (NIBD/EBITDA) which have to be met by the Group             include exceptional items which are listed in note 9. Furthermore, the ability
on a consolidated basis. For the NIBD/EBITDA calculation, the EBITDA is ad-             for the Group to take on new debt is limited by the loan agreement.

27 Secured liabilities and guarantees given
carrying aMount of deBt secured By Mortgages and pLedges (noK MiLLion)                                                                      2009                 2008

Debt to financial institutions                                                                                                            5 028.9              7 919.2
leasing debt                                                                                                                                139.3                166.3

Total debt secured by mortgages and pledges                                                                                               5 168.2              8 085.5

Guarantee liabilities                                                                                                                        77.4                  78.0

The principal loan program has been established with security in current
assets, licenses (where applicable), fixed assets and guarantees from some
of the entities in the Group. In addition the shares in larger subsidiaries have
been pledged in favour of the bank syndicate.

     Marine harvest

     carrying aMount of assets pLedged as security for deBt                                                                                2009                  2008
     (noK MiLLion)

     Tangible fixed assets and licenses                                                                                                  4 036.7               4 098.7
     Inventory and biological assets                                                                                                     4 456.8               5 108.8
     Trade receivables                                                                                                                   1 117.4               1 440.3
     Other assets                                                                                                                            35.0                 37.4

     Total assets pledged as security                                                                                                    9 645.9              10 685.2

     28 Financial Instruments

     capitaL ManageMent                                                               − increase in the company’s share capital through issuance of new shares
     The primary objective of the group’s capital management is to ensure                with an aggregate nominal value of up to NOK 260 917 350 divided into
     access to capital contributing to satisfactory operations and maximum gen-          347 889 800 shares at a nominal value of NOK 0.75 per share
     eration of shareholder values. The group manages its capital structure and       − raise loans on terms including a right for the creditors to receive shares
     makes adjustments in light of changes in the underlying economic condi-             in the company in settlement of the loan by setting off its claim of repay-
     tions. Access to borrowed capital is continuously monitored and the group           ment against the contribution obligation (convertible bond). The total
     has a continuous dialog with its lenders.The syndicated loan agreement sets         principal amount of such loans shall not exceed NOK 2 200 000 000 and
     forth covenants on the financial ratio of net interest-bearing debt to EBITDA       the number of shares issued shall not exceed 440 000 000 representing
     and the equity ratio. Marine Harvest complied with the covenants in its loan        an increase in the share capital of maximum NOK 330 000 000.
     agreements at the end of 2009.
                                                                                     The group’s principal financial liabilities, other than loans, consist of deriva-
     Marine Harvest intends to maintain an equity suitable for the characteristics   tives, bonds and accounts payable. These financial liabilities constitute
     of the operations, taking into consideration that fish farming is a cyclical    the majority of the group’s third party financing. The group holds financial
     business. Capital not deemed necessary for further growth will be returned      assets such as accounts receivable, cash and shares.
     to shareholders as dividends or repurchase of shares. At year-end 2009,
     Marine Harvest had an equity of NOK 11 461 million. The equity share,           The group uses financial derivatives, mainly forward contracts and interest
     defined by equity/total assets, was at the same time 56.2%. Net interest-       rate swaps. The purpose of these instruments is to manage the interest
     bearing debt, defined as total interest-bearing debt less cash was NOK 5        rate and currency risk arising from the operations of the group. No trading in
     075 million at year-end. The Board consider the equity in the group appropri-   financial instruments is undertaken.
     ate for the scale of the operation. The Board has proposed a dividend of
     NOK 0.35 per share for 2009.

     The Board has been given proxies from the Annual General Meeting to:
      − repurchase of shares in the company up to a maximum total nominal
         value of NOK 260 917 350 which equals approximately 10% of the
         current share capital.

56   ANNUAl rePOrT 2009
Details regarding criteria for recognition and the bases for measurement for each class
of financial instrument are disclosed in note 2 – Significant accounting principles.
31 December 2009

                                                                       financial assets and liabilities                       non-financial       total
(noK MiLLion)                          financial assets                                               financial derivatives     assets and
                                                               financial instruments at fair
                                       and liabilities at                                        cost qualified for hedge        liabilities
                                                               value through profit or loss
                                        amortized cost                                                         accounting
                                                                 trading        optional

Non-current assets
Intangible assets                                                                                                                   7 742.6     7 742.6
Property, plant and equipment                                                                                                       3 518.1     3 518.1
Shares in associated companies                                                                                                        520.1      520.1
Other shares                                                                         80.4         38.4                                           118.8
Current assets
Inventory                                                                                                                             742.7      742.7
Biological assets                                                                                                                   5 351.1     5 351.1
Trade receivables                               1 672.1                                                                                         1 672.1
Other receivables                                                   11.5                                             186.3            353.8      551.6
Cash and cash equivalents                         172.2                                                                                          172.2

Total Assets                                    1 844.3             11.5             80.4         38.4               186.3         18 228.4    20 389.3

equity                                                                                                                             11 460.4    11 460.4
Non-current liabilities
Deferred tax liability                                                                                                              1 142.6     1 142.6
Non-current interest-bearing debt               5 116.9                                                                                         5 116.9
Other non-current liabilities                                                                                                          99.8       99.8
Current liabilities
Tax payable                                                                                                                            50.8       50.8
Current interest-bearing debt                     130.3                                                                                          130.3
Trade payables                                  1 339.8                                                                                         1 339.8
Other current liabilities                            4.9           220.3                                              30.3            793.2     1 048.7

Total equity and liabilities                    6 591.9            220.3                  0.0      0.0                30.3         13 546.8    20 389.3

     Marine harvest

     categories of financiaL instruMents in the stateMent of financiaL position (noK MiLLion)
     31 December 2008                                                       financial assets and liabilities                           non-financial               total
                                             financial assets        financial instruments at fair           financial derivatives       assets and
                                             and liabilities at      value through profit or loss       cost qualified for hedge          liabilities
                                              amortized cost                                                          accounting
                                                                         trading      optional
     Non-current assets
     Intangible assets                                                                                                                        8 397.0            8 397.0
     Property, plant and equipment                                                                                                            4 243.6            4 243.6
     Shares in associated companies                                                                                                             513.5              513.5
     Other shares                                                                          40.0            38.9                                                     78.9
     Current assets
     Inventory                                                                                                                                1 074.5            1 074.5
     Biological assets                                                                                                                        5 620.6            5 620.6
     Trade receivables                                1 903.4                                                                                                    1 903.4
     Other receivables                                                      16.0                                                                516.4              532.4
     Cash and cash equivalents                          372.6                                                                                                      372.6

     Total Assets                                     2 276.0               16.0           40.0            38.9                  0.0         20 365.6          22 736.5

     equity                                                                                                                                   9 624.6            9 624.6
     Non-current liabilities
     Deferred tax liability                                                                                                                     732.9              732.9
     Non-current interest-bearing debt                6 747.7                                                                                                    6 747.7
     Other non-current liabilities                                                                                                              116.7              116.7
     Current liabilities
     Tax payable                                                                                                                                  69.9              69.9
     Current interest-bearing debt                    1 365.5                                                                                                    1 365.5
     Trade payables                                   1 729.2                                                                                                    1 729.2
     Other current liabilities                            10.1             242.7                                             1 168.3            928.9            2 350.0

     Total equity and liabilities                     9 852.5              242.7             0.0             0.0             1 168.3         11 473.0          22 736.5

     There has not been any reclassification between the categories of financial assets or liabilities in 2008 and 2009.

     FAIR VALUE OF FINANCIAL INSTRUMENTS                                                   level 1: fair value determined directly by reference to published quotations
     Fair value of financial instruments carried at amortized cost                         level 2: fair value estimated using a valuation technique based on
     The group considers that the carrying amount of financial assets and liabili-         observable data
     ties recognized at amortized cost in the financial statements approximates            level 3: fair value estimated using a validation technique based on
     their fair value.                                                                     unobservable data.

     Fair value measurements recognized                                                  For Marine Harvest all financial instruments in the category “Financial
     in the statement of financial position                                              instruments measured at fair value through profit or loss” and in the
     Financial instruments that are measured at fair value subsequent to initial         category “Financial derivatives qualified for hedge accounting” are
     recognition are according to IFRS 7 grouped into a hierarchy of 3 different         measured using the level 1 of valuation techniques determined directly
     levels based on the degree to which the fair value is observable:                   by reference to published quotations.

58   ANNUAl rePOrT 2009
fair vaLue MeasureMents recogniZed in the stateMent of financiaL position 31.12 (noK MiLLion)    2009          2008

                                                                                                level 1      level 1
Assets measured at fair value:
Financial assets to fair value through profit or loss
                                                   Other shares                                   80.4          40.0
                                                   Current currency hedges                        11.5          16.0
Financial derivativies qualified for hegde accounting                                            186.3           0.0

liabilities measured at fair value:
Financial liabilities to fair value through profit or loss
                                                   Interest swaps                                210.9         242.7
                                                   Current currency hedges                          9.4          0.0
Financial derivativies qualified for hegde accounting                                             30.3       1 168.3

financiaL instruMents iMpact on coMprehensive incoMe (noK MiLLion)                               2009          2008

Classified in eBIT
Net currency effects on financial instruments in working capital                                  -62.4        217.6
including gain (loss) on current transaction hedges
Realized gain (loss) on non-current cash flow hedges                                              48.8          -5.2

Net in eBIT                                                                                       -13.6        212.4

Financial items
Net interest expense                                                                             -392.9       -485.4
Currency effects on external interest-bearing debt                                               999.9      -1 305.0
Currency effects from intercompany loans and receivables                                        -309.3        460.4
Change in fair value interest rate swaps                                                          32.0        -216.6
Change in fair value other shares                                                                 18.4        -194.1
Dividends and gain (loss) on sales of other shares                                                  0.1         -5.4
Net other financial costs                                                                         -21.8        -35.3

Net financial items                                                                              326.4      -1 781.5

Other comprehensive income

Non-current cash flow hedges qualified for hedge accounting                                     1 326.6     -1 279.4

Long terM cash fLow hedging eQuity reserve (noK MiLLion)                                            2009      2008

The change in the cash flow reserve within equity is:
Cash flow hedging equity reserve as of 01.01                                                     -1 172.6     111.1
Change in fair value of long term cash flow hedges                                                1 277.8   -1 278.5
Realized gain (loss) recycled through profit or loss                                                 48.8       -5.2

Cash flow hedging equity reserve as of 31.12.                                                       154.0   -1 172.6

     Marine harvest

     financiaL risK ManageMent                                                                Through hedging of transaction exposures, each business unit will ensure
     The Group monitors and manages the financial risks arising from the opera-               that its’ net cashflows in currencies other than its’ main hedging currency
     tions. These include currency risks, interest rate risk, credit risk and price/          are hedged towards this currency.
     liquidity risk.
                                                                                              Cash flow exposures arise from structural imbalances between curren-
     The Group seeks to manage these risks through operational measures                       cies on the revenue side vs the expense side. This imbalance is predomi-
     or (where such measures are not available) through the use of financial                  nantly a result of production taking place in a country different from the
     derivatives.                                                                             country of the customer. Due to their structural nature, the exposure horizon
                                                                                              for cash flow exposures is longer than for transaction exposures and these
     A policy on the management of these risks has been approved by the                       are therefore quantified on the basis of estimates for future revenues and
     Board. The policy includes principles on currency risk, interest rate risk,              expenses. In this estimation, focus is kept on the underlying currency struc-
     price risk, the use of financial instruments and other operational means as              ture of the individual revenue and cost item and the actual currency in which
     well as limits on the maximum and minimum levels of these exposures.                     transactions are invoiced is of lesser importance. Hedging transaction desig-
                                                                                              nated to manage cash flow exposures are defined as cash flow hedges.

     currency risK                                                                            The Marine Harvest Group normally has a net positive cash flow exposure
     In the Marine Harvest Group, several business units carry out a large                    towards EUR, GBP, USD and JPY and a net negative cash flow exposure
     number of business transactions in currencies different from the domestic                towards NOK, CAD and ClP. To hedge Group cash flows against exchange
     currency. For the Group, the relative importance of these transactions is                rate fluctuation Marine Harvest has a policy for long-term hedging of the
     substantially larger on the revenue side than on the cost side.                          most predominant net exposures. The Group hedges 50-90% of its’ under-
                                                                                              lying exposure between EUR and NOK with a horizon of 2-4 years, 50-80%
     To mitigate the potential fluctuation effects on its’ cashflows, the Group               of its’ underlying exposure between USD and CAD with a horizon of 2-4
     maintains a foreign exchange strategy designated to manage these expo-                   years. In 2009, Marine Harves also hedged 40-70% of its underlying expo-
     sures both in the short- and long term.                                                  sure between USD and ClP with a horizon of one year.

     For each of Marine Harvest’s business units, the Group has defined a main                Where the hedge program comprises more than one year, the percentage
     hedging currency. For some business units this currency is different from                of the exposure to be hedged is reduced over time.
     their domestic and functional currency
                                                                                              At the end of 2009 the Group held a portfolio of hedging instruments des-
     Marine Harvest Norway EUR                                                                ignated to mitigate transaction and cash flow exposure with a total contract
     Marine Harvest Chile USD                                                                 value of NOK 5 436.1 million. Instruments equivalent to 46% of the contract
     Marine Harvest Scotland GBP                                                              value mature in 2010 and no instrument matures beyond 31 December 2012.
     Marine Harvest Canada USD                                                                The portfolio had a net positive market value of NOK 158.1 million at year-end.
     Marine Harvest VAP EUR
     Marine Harvest Faroes DKK                                                                Currency exposure in the statement of financial position
     Marine Harvest Cold Water Species NOK                                                    As a consequence of the Group’s net cash flows being generated in EUR,
     Marine Harvest Asia USD                                                                  GBP and USD, the interest-bearing debt should reflect this currency struc-
                                                                                              ture and over time consist of:
     Transaction exposures arise from firm commitments made to transact in                       75% EUR,
     a currency different than the main hedging currency. The exposure horizon                   15% USD,
     for transaction exposures depend on the duration of the commitment, but                     6% GBP and
     will normally be relatively short. Hedging transactions designated to man-                  4% in other currencies.
     age transaction exposures are referred to as transaction hedges.                         This currency mix is obtained through borrowings as well as the use of
                                                                                              currency derivatives.

     As of 31 December 2009 net interest-bearing debt (incl long term basis swap) had the following currency structure:

     (noK MiLLion)                                     noK           usd               eur        gBp           Jpy            dKK        cad        other         totaL

     Cash and cash equivalents                          42.2          47.7             46.8         0.4          8.9            7.4        10.5           8.3        172.2
     Current interest-bearing debt                    -100.0        -254.9         594.2         -93.7           6.8            5.1       -30.5           3.3        130.3
     Non-current interest-bearing debt                 165.0         971.1       3 680.8         261.1           0.0           38.7          0.2          0.0      5 116.9
     Net interest-bearing debt                          22.7         668.5       4 228.2         167.1          -2.1           36.4       -41.0          -4.8      5 075.0

60   ANNUAl rePOrT 2009
sensitivity anaLysis - changes in eXchange rates
On the basis of financial positions and currency hedges in existence as of 31
December 2009, the effect of a 10% change in exchange rate of the following
relevant currency pairs has been estimated:

currency pair (noK MiLLion)                                                                                    eur/noK        usd/noK       Jpy/noK    usd/cad

EBIT                                                                                                                   27.0         -19.8       -2.8        -11.9
Financial items                                                                                                       343.4         -12.3        0.0       -44.3
Other comprehensive income                                                                                            584.3          0.0         0.0        62.4

Total                                                                                                                 954.6         -32.1       -2.8             6.2

interest rate risK
Marine Harvest ASA shall at all times hedge between 50% and 75% of the                decreasing over time. The Board has decided to deviate from this policy
Group’s non-current interest-bearing debt in its main financing currencies            for USD where a larger percentage of debt has been hedged.
(EUR, USD and GBP). Interest rate hedges can be entered into for a period
between one and seven years. The average duration shall be minimum 3                  At year-end 2009 the Group had a portfolio of interest swaps with a net
and maximum 4 years. The percentage of exposure hedged shall be                       negative market value of NOK 210.9 million.

currency                            aMount         the group pays                 the group                 start              Maturity         MarKet vaLue

EUR                                       42.0        Fixed 4.1410%                3M Euribor                                   24-3-2010                   -3.0
EUR                                       32.0        Fixed 1.8100%                3M Euribor                                   24-3-2010                   -0.7
EUR                                      185.0            3M Euribor              1M Euribor                                    24-3-2010                       1.3
EUR                                       40.0       Fixed 4.11350%                3M Euribor                                   24-3-2011                  -11.5
EUR                                       27.0        Fixed 2.1130%                3M Euribor                                   24-3-2011                   -2.2
EUR                                       21.0        Fixed 2.4590%                3M Euribor                                   24-3-2012                   -3.3
EUR                                      165.5        Fixed 4.1390%                3M Euribor                                   24-3-2012                  -69.2
EUR                                       25.0        Fixed 4.2875%                3M Euribor                                   24-3-2012                  -11.1
EUR                                       53.0        Fixed 2.6970%                3M Euribor                                   25-3-2013                   -6.3
GBP                                         5.5       Fixed 5.6515%                 3M libor                                    24-3-2011                   -2.9
GBP                                       15.0        Fixed 5.2300%                 3M libor                                    24-3-2012                  -10.5
GBP                                         7.0       Fixed 1.8600%                 3M libor                                    24-3-2010                   -0.2
USD                                       35.5        Fixed 5.1025%                 3M libor                                    24-3-2010                   -2.5
USD                                       33.8        Fixed 5.1005%                 3M libor                                    24-3-2011                  -11.0
USD                                      140.0        Fixed 5.1050%                 3M libor                                    26-3-2012                  -72.0
USD                                       60.0               3M libor               1M libor                                    24-3-2010                       0.2

EUR                                      152.0        Fixed 3.6790%                3M Euribor             24-3-2012             24-3-2014                   -5.6
GBP                                         3.0       Fixed 1.8600%                 3M libor              24-3-2010             24-3-2011                       0.0
GBP                                         5.0       Fixed 3.1740%                 3M libor              24-3-2011             26-3-2012                   -0.1
GBP                                       20.0        Fixed 3.9840%                 3M libor              26-3-2012             24-3-2014                       0.0
USD                                      100.0        Fixed 3.3120%                 3M libor              26-3-2012             25-3-2013                       -1.3
USD                                       92.0        Fixed 3.3120%                 3M libor              25-3-2013             24-3-2014                       1.2

Total                                                                                                                                                     -210.9

A 0.50% point parallel shift in all relevant yield curves will cause a NOK 52.9
million change in the market value. This change would be classified as a
financial item in the statement of comprehensive income for the Group.

     Marine harvest

     credit risK                                                                       mitigated its exposure to spot prices by entering into bilateral fixed price/
     The Group trades only with recognized, creditworthy third parties. It is the      volume contracts with its’ customers. The hedging rate has normally varied
     Group’s policy that all customers who wish to trade on credit terms are           between 15 and 40% of Marine Harvest’s sold volume and the duration
     subject to credit verification procedures. In addition, receivable balances are   of the contracts have typically been three to twelve months. To a limited
     monitored on an ongoing basis and a large proportion of the Group’s trade         extent such contracts have been entered into with duration of more than
     receivables are credit insured. The Group is monitoring exposure towards          twelve months. Furthermore Marine Harvest is reducing its’ exposure to
     individual customers closely and is not substantially exposed in relation to      spot price movements through its’ value added processing activities and tai-
     any individual customer or contractual partner as of 31 December 2009. The        loring of products for its customers. Other key liquidity risks are fluctuations
     maximum exposure is disclosed in note 23.                                         in production and harvest volumes, biological issues, and changes in the
                                                                                       feed price, which is the most important individual factor on the cost side.
     price/LiQuidity risK                                                              Feed costs are correlated to the marine and agricultural commodity prices
     The Group is continuously monitoring liquidity and estimates expected             of the ingredients
     liquidity development on the basis of budgets and monthly updated fore-
     casts from the business units.                                                    Marine Harvest’s aim is to maintain a balance between long-term financ-
                                                                                       ing and flexibility by using credit facilities, new borrowings and bonds. In
     Marine Harvest’s financial position and development depend significantly          note 26 an overview of the maturities on Group debt is presented. Marine
     on the spot price developments for salmon, and these prices have histori-         Harvest considers the combination of available liquidity and cash flow from
     cally been volatile. As such Marine Harvest is exposed to movements               operations to be sufficient to meet the on-going payment obligations.
     in supply and demand for salmon. Marine Harvest has to some extent

     29 Other non-current liabilities
     (noK MiLLion)                                                                                                                             2009              2008

     Deferred income, investment grants                                                                                                           9.4             17.4
     Net pension obligations                                                                                                                    86.6              94.6
     loss on office rental contracts and other non-current liabilities                                                                            3.8                  4.7

     Total other non-current liabilities                                                                                                        99.8             116.7

     30 related party transactions

     Related parties are in this respect considered as persons or legal entities       year-end 2009 Geveran Trading’s affiliated ownership in Marine Harvest
     which directly or indirectly possess substantial influence on the company         was 1 079 632 755 shares, constituting 30.2% of the total share capital.
     through ownership or position.                                                    At year end 2009 Geveran Trading had a lending position of 8.4 million
                                                                                       shares in Marine Harvest. In addition Geveran Trading held at year-end
     sharehoLders                                                                      TRS agreements with exposure to 100 million Marine Harvest shares.
     Geveran Trading Co ltd is indirectly controlled by trusts established by
     John Fredriksen for the benefit of his immediate family. Geveran Trading          The figures presented below are transactions with associated companies,
     Co ltd was allocated 20 million shares of the new capital issue in May. At        mainly Nova Sea AS and Center for Aquaculture Competence AS.

     reLated party trade transactions (noK MiLLion)                                                                                        2009                  2008

     Revenue                                                                                                                                 50.0                 49.2
     Purchase                                                                                                                             -377.6                -356.9

     Trade receivables                                                                                                                        6.4                     0.6
     Trade payables                                                                                                                          37.1                 49.2

62   ANNUAl rePOrT 2009
31 Contingent liabilities

dispute in chiLe concerning terMination of contract                              dispute in chiLe concerning terMination of a service
Pesquera Puluqui S.A. (Chile) has claimed payment of damages from                contract
three Marine Harvest Group companies in Chile (Fjord Seafood Chile S.A.,         Asesorías y Servicios Arctic ltda. has taken legal proceedings against
Salmones Tecmar S.A. and Cultivadora de Salmones linao limitada) due             Marine Harvest Chile S.A. claiming breach of contract and payment of
to the termination of a contract. The dispute shall be settled by arbitration.   damages due to termination of a service contract before the expiration
An adverse result may imply the payment of damages of up to                      date. The total amount claimed in damages is approximately
USD 4 million plus interest and costs of litigation.                             USD 3 000 000 plus interests and litigation expenses. Marine Harvest
                                                                                 Chile S.A. has made a provision of USD 500 000 in the accounts.
During 2009 a sentence has been issued in favour of Pesquera Puluqui
S.A. The three Marine Harvest Group companies in Chile have been sen-            insurance settLeMent in canada - discussions regarding
tenced to pay a total of approximately USD 932 000 to Pesquera Puluqui           the nuMBer of deductiBLes
S.A. This amount has been provided for in the financial statements. The          Marine Harvest Canada Inc. is having discussions with its insurance
sentence has been appealed.                                                      company regarding the number of deductibles that should be charged in
                                                                                 an ongoing insurance settlement (USD 250 000 per deductible). Marine
aLLeged Breach of environMentaL                                                  Harvest Canda Inc. considers there to be only one insurance claim in the
and sanitary reguLations in chiLe                                                insurance settlement and has recognized for only one deductible, i.e. USD
Sociedad Turística y Hotelera Puerto Viejo limitada has taken legal              250 000 in the accounts. The insurance company could end up consider-
proceedings against Marine Harvest Chile S. A. for alleged breach of             ing there to be three claims, thus leaving a potential additional liability for
environmental and sanitary regulations under Chilean aquaculture laws. If        Marine Harvest Canada Inc. of USD 500 000.
found guilty, Marine Harvest Chile S.A. may be subject to legal fines in the
maximum amount of approximately USD 1 610 000 and the revocation of
a lake concession. Marine Harvest Chile S.A. has made a provision of USD
100 000 in the accounts.

     Marine harvest

     Financial Statements
     and Notes ASA
     et år preget av utfordringer og fokus på langsiktig utvikling.

64   ANNUAl rePOrT 2009
Statement of profit and loss
Marine harvest asa
(noK MiLLion)                               note     2009       2008     2007

Revenue and other income                      10     38.9       16.9       0.0
Salary and personnel expenses                  2     -61.2      -47.3    -49.6
Other operating expenses                     3/4    -53.0      -40.0    -100.2
Depreciation                                   6      -2.7       -2.4     -0.5
Net currency effects included in EBIT                69.6       -20.6    -29.3

earnings before interest and taxes (eBIT)             -8.5     -93.5    -179.6

Financial income                                     64.7      197.3    276.9
Net Interest expenses                              -382.4     -660.0    -517.7
Net currency effects                                620.1     -551.8    349.3
Other financial items                               116.2     -430.8    -178.7

earnings before taxes (eBT)                         410.2    -1 538.8   -249.8

Taxes                                          5    -96.8      326.6      21.6

Profit or loss for the year                         313.4    -1 212.2   -228.2

Distribution of result
Dividends payable                                  1 251.2       0.0       0.0
From retained earnings                             -937.9    -1 212.2   -228.2

From/to retained earnings                           313.4    -1 212.2   -228.2

     Marine harvest

     Statement of financial position
     Marine harvest asa
     (noK MiLLion)                          note      2009       2008


     Non-current assets
     Deferred tax asset                        5    1 354.0    1 446.4
     Total intangible assets                       1 354.0    1 446.4

     Property. plant and equipment             6        7.8        5.6
     Total tangible assets                              7.8        5.6

     Investments in subsidiaries               7   16 353.5   16 294.5
     Intercompany non-current receivables     10    2 023.6    2 450.7
     Investments in other shares               8      80.4       40.6
     Total financial assets                        18 457.5   18 785.7

     Total non-current assets                      19 819.3   20 237.7

     Current assets
     Trade receivables                                    -        9.9
     Other current receivables                          1.2        1.7
     Total receivables                                  1.2       11.6

     Cash and cash equivalents                11       10.9      191.2
     Total current assets                              12.1     202.7

     Total assets                                  19 831.4   20 440.4

66   ANNUAl rePOrT 2009
(noK MiLLion)                                                                                          note            2009               2008

eQuity and LiaBiLites

Share capital                                                                                            12         2 681.2         2 609.2
Share premium reserve                                                                                    12         5 917.5         8 692.7
Other paid-in capital                                                                                    12         2 259.5               22.7
Total paid-in capital                                                                                             10 858.2         11 324.6

Other equity                                                                                             12                -          174.6
Total equity                                                                                                      10 858.2         11 499.2

Bonds                                                                                                    13            78.7               78.8
liabilities to financial institutions                                                                  13/14        4 865.2         6 461.5
loans from group companies                                                                               10           926.2           482.0
Total non-current liabilities                                                                                       5 870.1         7 022.3

Other interestbearing debt                                                                                             87.0           747.3
Trade payables                                                                                                          6.8                3.0
Intercompany liabilities                                                                                 10         1 518.2           903.2
Accrued salary expenses and public tax payables                                                                         2.7                3.6
Other current liabilities                                                                                 9           237.2           261.8
Dividends payable                                                                                                   1 251.2                  -
Total current liabilities                                                                                           3 103.1         1 918.9

Total liabilities                                                                                                   8 973.2         8 941.2

Total equity and liabilities                                                                                       19 831.4        20 440.4

                                                                   osLo, 23 March 2010

              Ole Eirik lerøy                     Thorleif Enger                  Cecilie Fredriksen           Celina Midelfart

          Geir Elling Nygård               leif Frode Onarheim                   Turid lande Solheim           Solveig Strand

              Tor Olav Trøim                       Frank Øren                                                  Thomas Farstad
                                                                                                         ACTING CHIEF EXECUTIVE OFFICER

     Marine harvest

     Statement of cash flow
     Marine harvest asa
     (noK MiLLion)                                                       note     2009       2008

     Cash flow from operations
     Earnings before interest and taxes (EBIT)                                     -8.5     -93.5
     Adjustments for impairment losses and depreciation                     6       2.7       2.4
     Taxes paid                                                             5      -2.3     -30.9
     Change in inventory. acc. payables and acc. receivables                      20.2       -29.7
     Other adjustments                                                            36.0        -2.2
     Cash flow from operations                                                    48.1     -153.9

     Cash flow from investments
     Payments made for purchase of fixed assets                             6      -4.9       -2.5
     Purchase of shares and other investments                                     -21.8      -10.9
     Cash flow from investments                                                   -26.7      -13.4

     Cash flow from financing
     Proceeds from new interest-bearing debt (current and non-current)     13    246.7      492.4
     Down payment of interest-bearing debt (current and non-current)       13   -1126.0    -561.1
     Paid interest (net)                                                        -343.4     -443.6
     Received interest group internal (net)                                10     36.9       -17.4
     Net change in intercompany balances                                         689.5    -3 216.9
     Repayment of share premium reserves/dividends received                        0.0    3 989.9
     Paid-in capital                                                             294.6        0.0
     Cash flow from financing                                                    -201.7     243.3

     Net change in cash and cash equivalents in period                          -180.3       76.0

     Cash and cash equivalents - opening balance                                 191.2      115.2
     Net change in cash and cash equivalents in period                          -180.3       76.0

     Cash and cash equivalents - closing balance total                     11     10.9      191.2

68   ANNUAl rePOrT 2009
Notes – Marine Harvest ASA
1 General information and accounting policies
                                                                                   will not be recognized in the Group financial statements until approved in
Marine Harvest ASA is the parent company in the Marine Harvest Group               the general meeting, while in the separate financial statements for Marine
and consist of corporate management.                                               Harvest ASA it will be recognized when proposed by the Board of Directors.

The separate financial statements of Marine harvest ASA have been                  Investment in subsidiaries and intercompany loans are measured to the
prepared in accordance with the Norwegian Accounting Act from 1988                 lowest of fair value and cost. Financial derivatives within the Group are
and Generally Accepted Accounting Principles in Norway. The financial              measured to fair value. The statements of profit and loss and changes in
statements for the Group have been prepared in accordance with                     equity in the separate financial statement divert from the statements for the
International Financial Reporting Standards and interpretations issued by          Group as other comprehensive income still is treated like equity transactions
the International Accounting Standards Board (IASB) as adopted by the EU           in the separate financial statements.
                                                                                   Revenues and other income consist mainly of management fee charged to
For accounting policies used reference is made to note 2 in the Group              the business units. Management fee was allocated in 2009 and 2008, but
Financial Statements. Overall the accounting principles used in the financial      not in 2007 due to the establishing of new organisation and management
statements for Marine Harvest ASA are similar to the accounting principles         structures. Marine Harvest ASA is responsible for the Group’s bank
used for the Group’s financial statements. However dividends payable               accounts and for external financing of the Group.

2 Salary and personnel expenses

saLary and personneL eXpenses (noK MiLLion)                                                                           2009                2008                 2007

Wages and salaries                                                                                                   -40.3               -33.7                 -29.3
Social security taxes                                                                                                 -6.2                -6.3                  -7.1
Pension expenses                                                                                                       -1.6                -1.6                 1.9
Other benefits                                                                                                        -13.1               -5.8                 -15.1

Total salary and personnel expenses                                                                                  -61.2               -47.3             -49.6

loans to employees                                                                                                     0.1                    -                       -
Average number of full-time employees                                                                                   31                30.5                   27

At year-end 2009 there were 31 full-time employees in the company.                 defined contriBution pLan
With regards to salaries and other benefits to Group Management reference          Marine Harvest ASA had a defined contribution plan where the contribu-
is made to Group note 7.                                                           tion is limited to 6.5% of salaries up to 12 G.
                                                                                   The are 31 members of the plan as of 31 December 2009.

3 Other operating expenses

specification of other operating eXpenses (noK MiLLion)                                                               2009               2008                  2007

Sales and marketing costs                                                                                              -5.2               -8.1                 -8.5
losses on trade receivables                                                                                                -               0.1                 -0.2
IT costs 1)                                                                                                           -16.3                0.2                 -8.1
Consultancy fees 2)                                                                                                   -18.4              -18.1             -47.3
Other operating costs                                                                                                 -13.1              -14.2             -36.1

Total other operating expenses                                                                                       -53.0              -40.0             -100.2
     In 2009 IT costs were expensed in MH ASA and then invoiced the subsidiaries. In 2008 IT costs amounted to NOK 18 million which were directly charged
     the subsidiaries.
     Includes fees to external auditor. legal services and consultancy fees.

     Marine harvest

     4 Auditor’s fee

     fee to auditors 2009 (noK MiLLion)                                            ernst & young

     Audit services                                                                          1.7
     Other authorization services                                                            0.6
     Tax advisory services                                                                   0.8
     Other services non-audit related                                                        3.4

     Total fees for 2009                                                                     6.5

     fee to auditors 2008 (noK MiLLion)                                            ernst & young

     Audit services                                                                          2.1
     Other authorization services                                                            0.5
     Tax advisory services                                                                   1.7
     Other services non-audit related                                                        0.7

     Total fees for 2008                                                                     4.9

     Fee for audit services include NOK 1.3 millions that are services for 2007.

     fee to auditors 2007 (noK MiLLion)                                            ernst & young

     Audit services                                                                          1.4
     Other authorization services                                                            0.0
     Tax advisory services                                                                   6.7
     Other services non-audit related                                                        0.3

     Total fees for 2007                                                                     8.4

70   ANNUAl rePOrT 2009
5 Taxes

specification of this year’s taX eXpense (noK MiLLion)                          2009       2008       2007

Withholding tax/changes compared to earlier years                                -2.3       -3.1      -15.7
Changes in deferred taxes                                                       -94.5     329.7       37.3

Total tax expense                                                               -96.8     326.6       21.6

specification of teMporary differences and Loss carried forward (noK MiLLion)              2009       2008

Fixed assets                                                                                -0.1        1.5
Non-current assets and liabilities in foreign currencies                                   63.8     -679.1
Current assets                                                                                 -          -
Net pension liability                                                                       -3.2          -
Profit and loss account                                                                        -       0.3
losses carried forward                                                                  -4 730.1   -4 311.4
Other provisions for liabilities                                                          -166.2     -176.9

Total basis for deferred taxes/deferred tax asset:                                      -4 835.8   -5 165.6

Nominal tax rate                                                                          28 %       28 %
Deferred taxes/deferred tax asset                                                       1 354.0    1 446.4

Total recognized deferred tax asset                                                     1 354.0    1 446.4

     Marine harvest

     6 Property, plant and equipment

     specification of property, pLant and eQuipMent (noK MiLLion)                                                           2009          2008

     Acquisition cost as of 01.01                                                                                            8.5           6.7
     Additions in the year                                                                                                   4.9           2.5
     Disposals in the year                                                                                                     -          -0.7

     Total acquisition cost as of 31.12                                                                                     13.4           8.5

     Accumulated depreciation and impairment losses as of 01.01                                                              2.9           1.2
     Depreciation in the year                                                                                                2.7           2.4
     Accumulated depreciation and impairment losses on disposals                                                               -          -0.7

     Total accumulated depreciation and impairment losses as of 31.12                                                        5.6           2.9

     Total net carrying amount as of 31.12                                                                                   7.8           5.6

     Estimated lifetime                                                                                                3-6 years    3-6 years
     Depreciation method                                                                                                  linear        linear

     7 Shares in subsidiaries

     coMpany                           Business address              date of   owner’s   nuMBer of     eQuity as of       profit   carrying
     (noK MiLLion)                                                 purchase      share     shares         31.12.2009   this year    aMount

     Marine Harvest NV                 Amersfoort. Netherland       29-12-06     100 %      225 000         1 808.6         -0.3     5 392.9
     Marine Harvest Holding AS         Oslo. Norway                 07-04-06     100 %   590 452 360         5 987.1       217.6    10 676.8
     Marine Harvest Faroes             Kollafjordur. Faroes         01-11-99    72.6 %            1           107.7         14.2       110.5
     Marine Harvest Kritsen SAS        Pollaouen. France            11-04-97     100 %     7 005 366          267.1         53.0       173.3
     Pan Fish Japan ltd.               Tokyo. Japan                 28-06-01     100 %         3 000            -3.6        -0.3          0.0

     Total                                                                                                  8 166.9       284.3     16 353.5

     Shares in subsidiaries are recognized according to the
     cost method. The owners share listed above are equal to
     the voting rights for each company.

72   ANNUAl rePOrT 2009
8 Investments in other shares

Other shares include investments where Marine Harvest ASA does not have any or only very limited influence on operations and management (normally an
ownership less than 20 percent).

coMpany (noK MiLLion)                                              nuMBer of        ownership           acQuisition      changes in                 carrying
                                                                     shares                %                  cost MarKet vaLue 2009              aMount 2009

Aker Seafoods ASA                                                  10 092 923            11.9 %                284.8                  20.7               79.5
lighthouse Caledonia ASA                                             2 927 144            0.0 %                  27.8                 -1.5                0.8
Other shares                                                                                                      0.8                                     0.1

Total carrying amount of investments in other shares                                                                                  19.1               80.4

The shares in Aker Seafoods ASA and lighthouse Caledonia ASA
are carried at fair value based on the market price for the shares
at Oslo Stock Exchange at year-end 2009.

9 Other current liabilities

provisions and contingent LiaBiLities and assets             (noK MiLLion)                                                            2009                2008

Negative fair market value on interest swaps                                                                                         210.9               242.9
Accrued interest cost                                                                                                                   4.9               10.0
Net forward contracts 1)                                                                                                               -0.2                -2.9
Other accruals                                                                                                                         21.7               11.8

Total other current liabilities                                                                                                      237.3               261.8

     The amount includes the market value of forward contracts with subsidiaries representing a receivable for Marine Harvest ASA of NOK 198 million.
     The forwards contracts were initiated to hedge the exposures of the subsidiaries. To the extent this exposure cannot be offset internally,
     Marine Harvest ASA has entered into forward contracts with 3rd party banks.

     Marine harvest

     10 Transactions with subsidiaries

     receivaBLes and LiaBiLities towards suBsidiaries (noK MiLLion)                                                                     2009       2008

     Intercompany non-current receivables                                                                                            2 023.6    2 450.7
     loans from group companies                                                                                                       -926.2     -482.0

     Net non-current receivables                                                                                                     1 097.4    1 968.6

     Intercompany receivables                                                                                                          223.4      908.8
     Intercompany liabilities                                                                                                        -1 741.6   -1 812.0

     Net intercompany liabilities                                                                                                    -1 518.2    -903.2

     Totalt net intercompany balances                                                                                                 -420.8    1 065.5

     Management fee. net invoiced subsidiaries 1)                                                                                       38.9       16.9

     group internaL incoMe and eXpense (noK MiLLion)                                                                                    2009       2008

     Interest income group companies                                                                                                    57.3      177.9
     Interest expense group companies                                                                                                  -20.5     -195.3
     Group contribution                                                                                                                 29.2       20.7

     The table shows the effects group internal transactions have on financial
     income and financial expense presented in the statement of profit and loss.

          In 2009 IT costs of NOK 16 million were included in management fee. In 2008 these costs were directly invoiced the BU’s.

     11 restricted funds

     Marine Harvest ASA possessed cash and cash equivalents
     of NOK 10.9 million at 31 December 2009, mainly restricted funds.

74   ANNUAl rePOrT 2009
12 equity

specification of changes in eQuity in 2009 (noK MiLLion)                     issued         share      other     other        totaL
                                                                            capitaL       preMiuM     paid-in   eQuity       eQuity
                                                                                          reserve    capitaL

equity 01.01.09                                                                 2 609,2    8 692,7      22,7      174,6     11 499,2
Capital increase                                                                  72.0      230.4           -          -      302.4
Costs related to capital increase                                                     -       -5.6          -          -        -5.6
Reduction of share premium reserve                                                    -   -3 000.0   3 000.0           -           -
Dividends payable                                                                     -          -    -763.2     -488.0     -1 251.2
Profit or loss for the year                                                           -          -          -     313.4       313.4

Total equity 31.12.09                                                           2 681.2    5 917.5   2 259.5        0.0    10 858.2

specification of changes in eQuity in 2008 (noK MiLLion)                     issued         share      other     other        totaL
                                                                            capitaL       preMiuM     paid-in   eQuity       eQuity
                                                                                          reserve    capitaL

equity 01.01.08                                                                 2 609.2    8 692.7      27.4    1 447.3    12 776.62
Net equity effect on expensing of stock options                                       -          -       -4.7       1.7         -3.0
Change in deferred tax related to direct equity transactions                          -          -          -      40.0        40.0
Currency changes booked directly towards equity                                       -          -          -    -108.2       -108.2
Other minor items charged directly to equity                                          -          -          -       6.0          6.0
Profit or loss for the year                                                           -          -          -   -1 212.2    -1 212.2

Total equity 31.12.08                                                           2 609.2    8 692.7      22.7      174.6     11 499.2

distriButaBLe eQuity
Additional equity that can be distributed as dividend as of 31 December 2009
amounts to NOK 905.5 million, and is classified within other-paid-in capital.

     Marine harvest

     13 liabilities to financial institutions

     (noK MiLLion)                                                                                                                                      2009                2008

     Non-current debt as of 01.01                                                                                                                    6 540.3            5 359.8
     Change in revolving loan facilities                                                                                                               246.7               627.4
     Foreign exchange effect                                                                                                                          -782.7            1 010.3
     Change in capitalised loan costs                                                                                                                   20.8                25.1
     Ordinary loan instalments                                                                                                                        -570.9              -561.1
     Downpayment next year’s instalments                                                                                                              -589.0                       -

     liabilities to financial institutions as of 31.12                                                                                               4 865.2            6 461.5
     Bonds                                                                                                                                               78.7               78.8

     Total non-current debt as of 31.12                                                                                                              4 943.9            6 540.3

     repayMent profiLe on non-current deBt to financiaL institutions
     year:                                                                                          2010              2011              2012              2013           totaL

     Instalment 1)                                                                                      -         4 865.2                   -             78.7         4 943.9

          The instalments in 2010 was paid in full ultimo 2009. For 2008 this was included in the non-current debt.

     The repayment profile described is in line with the contractual instalments            maturity for the revolving credit facilities. In December 2009 Marine
     to the syndicate. Based on the cash flow generated in a calendar year, the             Harvest made a voluntary prepayment of all instalments for 2010. The
     instalment may, under given circumstances, increase beyond the table                   revolving credit facilities are available to Marine Harvest ASA and selected
     above.                                                                                 subsidiaries. In addition parts of the revolving credit facilities may be allocated
                                                                                            as bilateral credits (including overdraft facilities and facilities for the issuance
     Financing of the Marine Harvest Group is principally through the parent                of guarantees) between syndicate banks and group companies.
     company Marine Harvest ASA. External financing in the subsidiaries are
     only conducted if this is optimal for the Group for operational or tax pur-            The syndicated loan agreement sets forth covenants on the financial ratio of
     poses.                                                                                 net interest bearing debt to EBITDA together with equity ratio.

     The following programs are the main financing sources of Marine Harvest                Net interest bearing debt to EBITDA is also the basis for determining the
     Group per 31 December 2009:                                                            interest margin. Based on group performance the loan margin can vary
                                                                                            between 0.70 percent p.a. and 2.25 percent p.a. above the interbank inter-
     eur 1.100 MiLLion syndicated Borrowing faciLity                                        est rate.
     The Group has a syndicated loan facility with an original limit of EUR 1 100
     million. The loan facility consists of a term loan of originally EUR 550 million       Bond
     together with two revolving credit facilities totalling EUR 550 million.               In connection with the refinancing in January 2003, a subordinated convert-
                                                                                            ible bond of NOK 78 million was established. The bond matures in 2013,
     The term loan is repaid in semi annual instalments of EUR 22 million and               was convertible and non interest bearing the first 5 years, and is now inter-
     USD 20 million and has final maturity in March 2011, which is also the final           est-bearing with an interest rate of NIBOR + 2.00 percent p.a.

76   ANNUAl rePOrT 2009
14 Assets pledged as security and guarantee liabilities
assets pLedged as security and guarantee LiaBiLities
The syndicated loan facility in Marine Harvest is secured by assets pledged     assets. The larger subsidiaries of the Group have also granted a pledge in
from the larger subsidiaries of the Group. In addition Marine Harvest ASA       their current assets, partly as a pledge in favour of a third party and partly as
has pledged the ownership in its subsidiaries, as well as certain current       security for the fulfilment of the obligations.

(noK MiLLion)                                                                                                                            2009              2008

Secured Group debt                                                                                                                   4 972.5            7 271.9
Carrying amount of assets pledged as security:
Receivables                                                                                                                           1 927.8           2 916.3
Fixed assets                                                                                                                                 -                  -
Other (shares in subsidiaries)                                                                                                      16 243.1           16 247.4
Total carrying amount of assets pledged as security                                                                                 18 170.9          19 163.7

Guarantee liabilities:                                                                                                                   68.9             597.1
Nominal value of guarantee liabilities                                                                                                   68.9             597.1

15 Financial derivatives

foreign eXchange risK
At the end of 2009 Marine Harvest ASA had a portfolio of currency               Further, Marine Harvest ASA holds a basis swap which fixes the exchange
hedging instruments against third party counterparts with a total contract      rate between EUR and USD. This basis swap represents an adjustment to
value of NOK 5 436.1 million. The portfolio had a positive market value of      the currency structure on external debt and had a positive market value of
NOK 158.1 million. The portfolio is described in further detail in note 28 to   NOK 20.3 million as of 31.12.09.
the group accounts.
                                                                                The forward contracts and the basis swap are recorded at fair value in the
The subsidiaries are required to do all their currency hedging with Marine      balance sheet.
Harvest ASA as their counterparty. In addition to the portfolio of external
hedges, Marine Harvest ASA also holds a portfolio of foreign exchange           interest rate risK
hedges with their subsidiaries as counterparty. This portfolio to a large       Marine Harvest ASA hedges all interest rate risk on behalf of the Group.
extent offsets the external portfolio with respect to amounts, maturities       For positions held in interest rate derivatives and their value, reference is
and market values.                                                              made to note 28 of the Group accounts.

     Marine harvest

                                              confirMation froM the Board of directors and the ceo

     We confirm, to the best of our knowledge, that the financial statements       of the Board provides a true and fair view of the development and perfor-
     for the period from 1 January to 31 December 2009 have been prepared in       mance of the business and the position of the Group and the Company,
     accordance with IFRS, as adopted by the EU, and give a true and fair view     together with a description of the key risks and uncertainty factors that the
     of the Group and the Company’s consolidated assets, liabilities, financial    company is facing.
     position and results of operations. Furthermore, we confirm that the Report

                                                                        osLo, 23 March 2010

               Ole Eirik lerøy                         Thorleif Enger                   Cecilie Fredriksen                        Celina Midelfart

             Geir Elling Nygård                    leif Frode Onarheim                Turid lande Solheim                          Solveig Strand

               Tor Olav Trøim                            Frank Øren                                                               Thomas Farstad
                                                                                                                            ACTING CHIEF EXECUTIVE OFFICER

78   ANNUAl rePOrT 2009
Auditor’s report

     Marine harvest


     et år preget av utfordringer og fokus på langsiktig utvikling.

                                        Marine Harvest ASA                   Marine Harvest Norway              Marine Harvest VAP
                                        Stortingsgt 8                        Sandviksboder 78A                  Kolvestraat 4
                                        0161 OSlO                            5035 Bergen                        8000 Brugge,
                                        P.O. Box 1086 Sentrum                P.O. Box 4102 Dreggen              Belgium
                                        0104 OSlO                            5835 Bergen                        Tel: +32 50 45 85 85
                                        Norway                               Norway                             Fax: +32 50 45 85 86
                                        Tel: +47 21 56 20 00                 Tel: +47 81 53 53 30               Email:
                                        Fax: +47 21 56 20 01                 Fax: +47 55 54 72 90
                                        Email:   Email:

                                        Marine Harvest Scotland              Marine Harvest Chile               Marine Harvest Canada
                                        Ratho Park, 1st floor,               Ruta 226, Km 8                     #124 1334 Island Hwy
                                        South Wing,                          Camino El Tepual                   Campbell River,
                                        88 Glasgow Road                      Puerto Montt,                      BC V9W 8C9
                                        Ratho Station, Newbridge, EH28 8PP   Chile                              Canada
                                        Edinburgh,                           Tel: +56 65 289 700                Tel: +1 250 850 3276
                                        Scotland                             Fax: +56 65 435 567                Fax: +1 250 850 3275
                                        Tel: +44 131 344 5772                Email:     Email:
                                        Fax: +44 131 344 5773

                                        Marine Harvest Faroes                Marine Harvest Ireland             Marine Harvest Asia,
                                        Ternubrekkan 1                       Kindrum, Cashel P.O.               Singapore office
                                        FO-695 Hellurnar                     letterkenny,                       20, Harbour Drive
                                        Faroes                               County Donegal                     #05-02 PSA Vista
                                        Tel: +298 44 47 33                   Ireland                            Singapore 117612
                                        Fax: +298 44 47 59                   Tel: +353 74 91 59 071             Tel: +65 6872 2996
                                        Email:      Fax: +353 74 91 59 077             Fax: +65 6872 4188
                                                                             Email:   Email:

                                        Marine Harvest                       Marine Harvest Japan, Inc.
                                        Cold Water Species                   1st Floor, 2-26-3, Shinagawa,
                                        Hundsnes                             Chuo-ku, Tokyo, 104-0033
                                        4130 Hjelmeland                      Japan
                                        Norway                               Tel: +81 3 5541 9301
                                        Tel: +47 51 75 40 00                 Fax: +81 3 5541 9302
                                        Fax: +47 51 75 40 44

80   ANNUAl rePOrT 2009
PO. Box 1086 Sentrum
NO-0104 Oslo
Tel:   +47 21 56 20 00
Fax:   +47 21 56 20 01

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