FULL-YEAR RESULTS 2017

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Amie Melinda Hubbard
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1 FULL-YEAR RESULTS 2017

2 Agenda Founded Goodvalley in 1994 Goodvalley since 2016 This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond Goodvalley A/S control, may cause actual developments and results to differ materially from the expectations contained in the presentation. 2

Welcome to Goodvalley Vertically integrated food producer Pig farming Slaughtering and meat processing Arable and feed mills Biogas production Danish pig farming principles Strong market drivers and

3 Welcome to Goodvalley Vertically integrated food producer Pig farming Slaughtering and meat processing Arable and feed mills Biogas production Danish pig farming principles Strong market drivers and fundamentals Profitable growth since 1994 Denmark Copenhagen Headquarters Poland #2 pig producer Russia Platform in place Revenue by geography Revenue by segment 10% 11% 54% 2% 3% 4% 44% Ukraine #3 pig producer 25% 47% Poland Ukraine Russia Rest of World Pig Food Arable Energy Pig Food Arable Energy Other 3

4 Group highlights 15% Revenue grew 15% to DKK 1,620 million driven by higher market prices 30.6 pigs per sow Efficiency improved and outperformed EU and USA averages Global GAP Efforts to promote food safety recognised with Global GAP certification DKK 426m Record EBITDA of DKK 426 million, yielding an EBITDA margin of 26.3% kilo Stable and low feed conversion ratio of 2.8 kilo feed per kilo pork RWA Goodvalley grew sales of the new RWA and GMO-free products EUR 135m Solid capital structure in place following successful bonds issue 5.8 tonnes The average crop yield per hectare increased to 5.8 tonnes from 5.1 tonnes 2018 We expect strong earnings in 2018 with Adjusted EBITDA of DKK million 1 Margins are calculated based on revenue compared to previously announced margins, which were calculated based on total income. Following this change in presentation, the Group s EBITDA of DKK 426 million corresponds to an EBITDA margin of 26.3% in 2017 (2016: 24.7%) against 25.8% (2016: 21.9%) as most recently reported in company announcement 2/2018 on 8 February

5 Market drivers Growing demand and preference for pork meat $ High quality land at affordable prices Net importers of pork meat $ Relatively low labour costs Potential for increasing local consumption Local supply of crops for feed Increasing disposable income Efficiency gains from Danish farming knowhow 5

Market developments Maturing market Consumption in line with EU-28 Great consolidation potential High growth

expected to increase Producers focus less on efficiency 54% of total 4% growth 25% of total 46% growth 10% of

Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 1 EU average based on EU (weighted average) market prices

(European Commission) Source: Company information and World Bank (Global Economy Prospects, January 2018).

6 Market developments Maturing market Consumption in line with EU-28 Great consolidation potential High growth potential Low consumption on the rise GDP growth drives normalisation Economic and political support Consumption expected to increase Producers focus less on efficiency 54% of total 4% growth 25% of total 46% growth 10% of total 9% growth Goodvalley (Poland) Goodvalley (Ukraine) Goodvalley (Russia) EU average 1 0 Q Q Q Q Q Q Q Q EU average based on EU (weighted average) market prices for pig carcass grade E in the E.U. (European Commission) Source: Company information and World Bank (Global Economy Prospects, January 2018). Real growth based on constant 2010 U.S. dollar GDP weights % E 2018F 2019F Poland Ukraine (9.8) Russia (2.8) (0.2) Euro area

7 Pig segment 19% higher average price on slaughter pigs boosted revenue Revenue grew 18% to DKK 1,135 million Reduced intake of slaughter pigs in Food segment due to high price Earnings driven by efficiency and positive market conditions Adjusted EBITDA grew 54% to DKK 374 million Stable feed price ensured attractive meat to feed ratio of DKK million Q Q External revenue Internal revenue , % 25.3% 32.7% 28.7%

8 Food segment Reduced intake of slaughter pigs due to high prices Revenue slightly down with an unchanged product split Activity shifted to Pig segment to optimise Group profitability Earnings impacted by higher input prices and reduced activity EBITDA declined due to high input prices Ready to re-balance activity to Food segment at lower prices MAP 19% Processed 24% 57% Deboned DKK million Q Q (9) 25 (5) 0 (1.2%) 3.2% (2.7%) 0.2% 8

Arable and Energy segments High yield in Ukraine and

average yield per hectare increased to 5.

8 Strong performance in Energy from high output and

back of new support schemes in Poland Higher output and

53 55 62 58 63 20 0 2013 2014 2015 2016 2017 DKK

37 1 - Internal revenue 121 106 54 41 175 143 55 41 39

9 Arable and Energy segments High yield in Ukraine and Russia lifted Arable revenue Revenue grew 22% as the average yield per hectare increased to 5.8 EBITDA grew 45% despite adverse weather conditions in Poland Strong performance in Energy from high output and prices Revenue up 55% on back of new support schemes in Poland Higher output and efficiency contributed to strong EBITDA growth DKK million Q Q External revenue Internal revenue % 18.9% 14.5% 17.1% DKK million Q Q External revenue Internal revenue % 12.7% 12.9% 31.8% 9

10 Group financials Strong revenue growth driven by Pig, Arable and Energy Revenue grew 15% to DKK 1,620 million High pig prices entailed best-ever performance 2,000 1,500 1,000 1,270 1,209 1,275 1,405 1, Record profitability based on revenue growth and high efficiency EBITDA increased 22% to DKK 426 million Strengthened operational performance and efficiency Solid cash flow development % 29.9% 22.3% 24.7% 26.3% Operating cash flows grew 21% and free cash flows by 49% DKK million Q Q ,620 1, (49) % 21.3% 25.5% 22.6% 26.3% 24.7% 11.3% 15.7%

11 Outlook 2018 Goodvalley expects strong revenue and earnings in 2018 Revenue of DKK 1,550-1,700 million Adjusted EBITDA of DKK million Performance is expected to be impacted by Continued high production efficiency Good stock of quality crops harvested Adverse impact of lower pig prices DKK million 2018 outlook 2017 actuals Revenue 1,550-1,700 1,620 Adjusted EBITDA Reported EBITDA The earnings outlook is presented at fixed herd price in terms of Adjusted EBITDA to reduce fluctuations in guidance and provide optimum conditions for assessing Goodvalley s operational efficiency and performance specifically and in isolation from changes in market prices for live pigs, potentially entailing material fair value adjustments of the Group s biological assets on the balance sheet date. The outlook for 2018 is based on an average market price for live pigs of DKK 11.2 per kilo and current exchange rates as well as the prevailing economic situation in Goodvalley s markets. The outlook represents our current expectations for the development in the Group s revenue and Adjusted EBITDA, and Goodvalley s reported EBITDA may thus deviate significantly from this outlook. 11

Strategy New geographies Strengthen consumer focus Capacity expansion Expansion into

tailored to specific markets Margin expansion and reduced Acquisitions or greenfield Clear

land base and green energy New slaughterhouse in Ukraine and expansion in Poland exposure

12 Strategy New geographies Strengthen consumer focus Capacity expansion Expansion into selected new markets Optimisation Increase pig production Branded premium products tailored to specific markets Margin expansion and reduced Acquisitions or greenfield Clear selection criteria Sustainability and Danish knowhow Superior efficiency standards Feed, land base and green energy New slaughterhouse in Ukraine and expansion in Poland exposure to bulk market Capitalising on sustainability and environmental protection Outperforming peers on KPIs 12

13 Strategy Crop growing Feed production Pig production Slaughtering, cutting and deboning Meat processing and marketing Bioenergy production Poland Fully integrated production Ukraine Partly integrated production From 2019 Russia Partly integrated production 13

14 Questions 14

15 Contact information 10 April Annual General Meeting 29 May Q1 interim report 29 August Q2 interim report 29 November Q3 interim report 15

16 Appendix 16

17 Key figures and financial ratios DKK million Income statement Revenue 1,620 1,405 1,275 1,209 1,270 Total income 1,653 1,485 1,370 1,414 1,315 Gross profit EBITDA Adjusted EBITDA EBIT Financial items, net (135) (70) (118) (226) (44) Profit/(loss) for the period Cash flow Operating activity Investing activity (143) (139) (254) (260) (360) Free cash flow (92) (49) (119) Financing activity 28 (71) 66 (121) (111) DKK million Key financials Gross margin 31.5% 29.3% 36.5% 43.0% 32.3% EBITDA margin 26.3% 24.7% 22.3% 29.9% 21.0% Adjusted EBITDA margin 26.6% 21.3% EBIT margin 18.8% 17.4% 15.1% 21.5% 13.1% Free cash flow / Revenue 8.1% 6.3% (7.2%) (4.1%) (9.4%) Cash conversion 43.1% 36.1% (56.5%) (18.9%) (71.0%) Investments in property, plant and equipment NIBD/Adjusted EBITDA LTM 2.6x 4.0x Equity ratio 46.0% 46.4% 43.2% 49.4% 53.9% ROIC 12.9% 10.6% 8.4% 10.2% 7.2% FTE year end 2,232 2,350 2,423 2,205 2,073 Share ratios Earnings per share, DKK Balance sheet Non current assets 1,833 1,825 1,832 1,827 2,102 Net working capital Invested capital 2,365 2,343 2,269 2,272 2,576 Total assets 2,751 2,655 2,557 2,542 2,843 Note: Equity Years have been restated in accordance 1,265 with new accounting 1,232 principles 1,105 1,256 1,532 Net interest-bearing debt 1,100 1,185 1,250 1,151 1,117 17

18 Goodvalley Bond Obligor Group 1 DKK million 2017 Goodvalley Bond Obligor Group Revenue 1,460 Total Income 1,495 EBITDA 375 Adjusted EBITDA 374 Net interest-bearing debt 1,081 Adjusted EBITDA LTM 374 NIBD/Adjusted EBITDA LTM Bond Obligor Group consists of: Goodvalley A/S, Finansax ApS, Poldanor SA, Prime Food SA and Danosha ltd 18

INTERIM REPORT Q Conference call 27 November 2018

INTERIM REPORT Q Conference call 27 November 2018 1 INTERIM REPORT Q3 218 Conference call 27 November 218 Agenda WELCOME TO GOODVALLEY GROUP HIGHLIGHTS MARKET DEVELOPMENTS SEGMENTS GROUP FINANCIALS SPEAKERS OUTLOOK 218 Q&A SESSION TOM AXELGAARD CEO Founded