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Q3 2014 presentation

Scandinavian market leader in chicken products

28 November 2014

1

• Continued underlying sales growth-Increase in Sweden offset decline in Norway, but at lower margin

-Increase of 12% excl. ICA Norway

• Lower adjusted EBIT and margin -Termination of ICA Norway contract

• Significantly lower finance costs

• Higher net income and EPS

• Strong cash flow -Including further inventory reductions

• Change of outlook for full year-Raised for sales, lowered for adjusted EBIT

Summary of Q3 2014

MSEK

Q3

2014

P. forma

Q3 2013 Change

Net sales 1,358.9 1,313.7 +3%

-In constant FX - - 0%

EBIT* 66.5 75.5 -12%

Margin* 4.9% 5.7% -

EBT* 51.5 35.5 +45%

Net income* 39.1 21.7 +80%

EPS*, SEK 0.65 0.43 +50%

Cash flow 65.9 35.9 +84%

*Adjusted for non-comparable items of -8.8 (-1.4) MSEK in

EBIT

2

• Net sales: +15%

• Adj. EBIT up against a weak quarter last year-Margin improved to 5.5%

-EBIT last year included inventory write-downs and facility upgrades

• Margin affected by higher production costs-Lower and uneven bird weight due to unseasonably hot summer

• Acquisition of Bosarpskyckling completed

• Collaboration with the MAX restaurant chain developed well

Sweden

Proforma ProformaMSEK Q32014 Q32013 Change 9M2014 9M2013 Change

Netsales 543.8 473.7 15% 1,567.2 1,409.9 11%

Adj.EBIT 29.8 11.6 157% 79.9 58.0 38%

Adj.EBITmargin,% 5.5% 2.4% 5.1% 4.1%

3

• As of 1 September

• Leading producer of organic chicken

in Sweden

-Net sales of 25 MSEK in 2013

-Contributes immediately to income

• Complements Kronfågel’s existing product

offering

• Strengthens position in growing premium

segment

Acquisition of Bosarpskyckling completed

Bosarpkyckling produces ecological chickens

that meet the Swedish KRAV standards

4

Collaboration with MAX

• Contract signed in Q2 2014

• Deliveries of chicken burgers and nuggets to restaurants started

in September

• The co-branded chicken nuggets already the best-selling nuggets

in Swedish retail market

5

• Net sales up 3% in constant currency, mainly within chilled products

• Lower sales of frozen products for export, increase in Danish market

• Continued price pressure

• Adj. EBIT down -Margin remained below last year; 4.2% (4.9)

• Impact on margin from Russian ban which has caused lower prices

on some products in Europe

Denmark

Change, Proforma Change,

MSEK Q32014 Q32013 Change constantFX 9M2014 9M2013 Change constantFX

Netsales 584.9 535.4 9% 3% 1654.9 1,553.0 7% 1%

Adj.EBIT 24.4 26.4 -8% -12% 72.0 71.9 - -5%

Adj.EBITmargin,% 4.2 4.9 4.4% 4.6%

6

Product launches in Denmark

Minutfilet Lørdagskylling Deli Chicken

7

• Net sales down 20% in constant FX-Increase of 11% excl. ICA contract (terminated as of 1 April 2014)

• Impact from ICA partly offset by new product listings and sales, but at

a slower rate than anticipated

• Decline in EBIT refers to termination of ICA contract

• Fredrik Strømmen appointed new country manager from March 2015

Norway

MSEK Q3 2014

Pro forma

Q3 2013 ChangeChange,

constant FX 9M 2014Pro forma9M 2013 Change

Change, constant

FX

Net sales 309.3 377.1 -18% -20% 991.2 1,149.3 -14% -12%

Adj. EBIT 24.3 40.8 -40% -39% 94.8 126.6 -25% -23%

Adj. EBIT margin, % 7.9 10.8 9.6% 11.0%

8

• 3 thin fillets

• Easy to fry evenly

• Superb result after 3 + 3 min

Product launches in Norway

Premium pan-ready fillets Coarsely-minced chicken fillets

• 100% meat

• Healthiest minced meat in Norway –1% fat

c c

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Summary of financial results

• Non-comparable items of -8.8 (-1.4) MSEK in EBIT in Q3 and 56.4 (-134.6) MSEK YTD

• Lower finance costs following refinancing of bank loans post IPO-Average interest rate in Q3 was 2.6% vs 6.5% in 2013

• Lower taxes

10

Cash flow

• Strong increase in both Q3 and 9M, incl. further reductions of inventories

• Higher capex in quarter as projects are phased more towards end of year

11

Balance sheet items

• Working capital down to 6.4% of net sales (LTM) from 9.4% at year-end 2013

• New credit facility established as of July 2014 reducing interest costs

• Increase in equity mainly due to conversion of shareholder loans to shares on IPO

12

Outlook raised for net sales, lowered for adjusted operating income:

• Net sales are expected to be in line with 2013 pro forma-Previously: In line with or lower than 2013 pro forma

• Adjusted operating income is expected to be in line with or lower

than 2013 pro forma-Previously: In line with or higher than 2013 pro forma

Change of outlook for full year 2014

13

• Strong sales in Sweden offset decline in Norway, but at lower margin

• Slower than anticipated replacement of ICA sales in Norway

• Decline in EBIT vs last year due to ICA Norway contract-Negative impact on broiler growth by hot summer

-Russian import ban

• Higher net income and EPS

• Outlook revised for full year 2014

Summary of Q3 2014

14

1. Drive organic growth-Improve product innovation by capitalising on strengths in brand and product

development

2. Production efficiency and reduce costs- Improvements across the group

3. Strategic acquisitions and partnerships

-Acquisition of Bosarp has strengthened position in premium growth segment

-Collaboration with MAX restaurants developed well

Strategic priorities

1515

Q & A

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Disclaimer

This presentation contains various forward-looking statements that reflect management’s current

views with respect to future events and financial and operational performance. The words

“believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,”

“aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain

of these forward-looking statements. Others can be identified from the context in which the

statements are made. These forward-looking statements involve known and unknown risks,

uncertainties and other factors, which are in some cases beyond the Company’s control and may

cause actual results or performance to differ materially from those expressed or implied from such

forward-looking statements. These risks include but are not limited to the Company’s ability to

operate profitably, maintain its competitive position, to promote and improve its reputation and

the awareness of the brands in its portfolio, to successfully operate its growth strategy and the

impact of changes in pricing policies, political and regulatory developments in the markets in

which the Company operates, and other risks.

The information and opinions contained in this document are provided as at the date of this

presentation and are subject to change without notice.

No representation or warranty (expressed or implied) is made as to, and no reliance should be

placed on, the fairness, accuracy or completeness of the information contained herein.

Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or

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indirectly from the use of this document.