Interim report Q1 2018

Interim report Q1 2018

Highlights Q1 2018 Goodvalley maintained and improved the Group s high efficiency level under stable market conditions in Q1 2018, and the underlying business performance across segments was strong. Due to temporary reduced capacity from renovation of stables and slightly lower pig prices, Group revenue declined to DKK 351 million (Q1 2017: DKK 365 million) and Adjusted* EBITDA came to DKK 73 million (Q1 2017: DKK 90 million) corresponding to an Adjusted EBITDA margin of 20.7% (Q1 2017: 24.6%). OUTLOOK FOR 2018 The Group maintains guidance for the full-year based on yearto-date performance and current expectations for the rest of the year. Goodvalley expects revenue of DKK 1,550-1,700 million and Adjusted EBITDA of DKK 340-425 million. We continued to generate solid operational performance in the first quarter of the year as we recorded the highest ever number of pigs sold per sow and maintained a strong feed conversion ratio. Stable renovations in Ukraine and reduced capacity in Poland entailed a decline in revenue and earnings against the comparison period, but we remain firmly on-track to realise our guidance for 2018, says CEO Tom Axelgaard. Pig segment revenue declined to DKK 247 million (Q1 2017: DKK 263 million) following lower volumes mainly due to temporary reduced capacity in connection with stable renovations in Ukraine and lower finisher capacity in Poland, and Adjusted EBITDA came to DKK 57 million (Q1 2017: DKK 73 million). Contact information Tom Axelgaard, CEO, Hans Henrik Pauk Pedersen, CFO tel.: +45 7652 2000 Revenue from the Food segment grew to DKK 189 million (Q1 2017: DKK 182 million) due to higher volumes, and EBITDA was DKK 6 million (Q1 2017: DKK 1 million). The Arable segment lifted revenue to DKK 8 million (Q1 2017: DKK 0 million) and generated stable EBITDA of DKK 5 million (Q1 2017: DKK 6 million). The Energy segment s production was stable, generating revenue of DKK 19 million (Q1 2017: DKK 20 million) and EBITDA of DKK 6 million (Q1 2017: DKK 8 million). Information Meeting Goodvalley will host a conference call for investors, analysts and other stakeholders on 29 May 2018 at 2 PM (CET). The conference call will be conducted in English by CEO Tom Axelgaard and CFO Hans Henrik Pedersen and can be followed live here: webcast link. To participate in the conference call, please use the link or telephone numbers below, which are also available on our corporate website here: Goodvalley.com. * In this report, Adjusted EBITDA refers to EBITDA adjusted for herd price changes and non-recurring items, cf. page 4. Page 2

Financial highlights DKK million Q1 2018 Q1 2017 2017 Income statement Revenue 351 365 1,620 Total income 410 407 1,653 Gross profit 122 116 511 EBITDA 97 99 426 Adjusted EBITDA 73 90 431 EBIT 68 68 304 Financial items, net (10) (14) (135) Profit/(loss) for the period 58 54 169 DKK million Q1 2018 Q1 2017 2017 Financial ratios Gross margin 34.8% 31.9% 31.5% EBITDA margin 27.6% 27.1% 26.3% Adjusted EBITDA margin 20.7 % 24.6% 26.6% EBIT margin 19.5% 18.7% 18.8% Free cash flow / Revenue 1.3% 7.3% 8.1% Cash conversion 6.7% 38.8% 43.1% Capex 42 32 152 NIBD/Adjusted EBITDA LTM 2.7 4.3 2.6 Equity ratio 46.2% 46.7% 46.0% Cash flow Operating activity 43 55 274 ROIC 13.0% 7.4% 12.9% FTE end of period 2,277 2,332 2,232 Investing activity (38) (28) (143) Free cash flow 5 27 131 Financing acticity (3) (50) 28 Share ratios Earnings per share, DKK 1 1 3 Balance sheet Non-current assets 1,833 1,924 1,833 Net working capital 579 571 532 Invested capital 2,412 2,495 2,365 Total assets 2,793 2,694 2,751 Equity 1,310 1,259 1,265 Net interest-bearing debt 1,098 1,231 1,100 Goodvalley Bond Obligor Group Revenue 318 1,460 Total income 370 1,495 EBITDA 84 375 Adjusted EBITDA 65 374 Net interest bearing debt 1,081 1,081 Adjusted EBITDA LTM 359 374 NIBD/Adjusted EBITDA LTM 3.0 2.9 *Bond Obligor Group consists of: Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC. established with effect from Q2 2017, whereby comparatives for Q1 2017 are not relevant. Page 3

Financial performance GROUP BUSINESS DEVELOPMENT Goodvalley s underlying business performance across segments was strong as the Group continued to generate market-leading operational KPIs, lifting the number of pigs sold per sow to an all-time high of 32.2 (Q1 2017: 30.5) and maintaining a strong feed conversion ratio of 2.75 despite an increase in average sales weight. Goodvalley realised a slight reduction in revenue and earnings compared to Q1 2017 driven mainly by lower volumes in the Pig segment and a moderate decrease in pig prices during the quarter. The decline in volumes was attributable to stable renovations in Ukraine related to Goodvalley s Global GAP certification and lower capacity at the Group s farms in Poland. INCOME STATEMENT Revenue Revenue in Q1 2018 decreased 4% to DKK 351 million (Q1 2017: DKK 365 million) mainly driven by lower volumes sold in the Pig segment and a slight decline in average pig prices in the quarter. These developments were partly offset by a positive trend in the Food segment s revenue as compared to Q1 2017 and slightly higher revenue in the Arable segment as well as stable performance in the Energy segment. Total income grew to DKK 410 million (Q1 2017: DKK 407 million), primarily driven by fair value adjustments at DKK 54 million (Q1 2017: DKK 37 million). Cost of goods sold Goodvalley s cost of goods sold for Q1 2018 decreased to an expense of DKK 288 million (Q1 2017: DKK 291 million). The development was realised as a result of the decrease in volumes in the Pig segment and despite higher costs related to stable renovations. REVENUE, DKK MILLION 500 400 300 200 100 0 35 30 25 20 15 10 5 0 365 Q1 2017 421 446 ADJUSTED EBITDA MARGIN, % 23.8% 24.6% 388 Q2 2017 Q3 2017 Q4 2017 Q1 2018 31.1% 25.6% 25.5% 351 20.7% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 DKK million Q1 2018 Q1 2017 2017 Revenue 351 365 1,620 Change in fair value 54 37 (5) Grants and other income 5 5 38 TOTAL INCOME 410 407 1,653 DKK million Q1 2018 Q1 2017 2017 EBITDA 97 99 426 Herd price adjustment (24) (9) 5 Adjusted EBITDA 73 90 431 ADJUSTED EBITDA MARGIN (%) 20.7% 24.6% 26.6% EBITDA margin 27.6% 27.1% 26.3% Page 4

Financial performance GROUP SG&A The Group s sales, general and administrative expenses amounted to DKK 25 million (Q1 2017: DKK 17 million) in Q1 2018. The increase primarily related to higher salary cost for administrative functions and increased branding costs related to the launch of the Goodvalley brand and name. EBITDA Goodvalley s Adjusted EBITDA decreased to DKK 73 million (Q1 2017: DKK 90 million), and the Adjusted EBITDA margin came to 20.7% (Q1 2017: 24.6%) as a result of lower revenue in the Pig segment. EBITDA decreased to DKK 97 million (Q1 2017: DKK 99 million), whereas the Group s EBITDA margin increased to 27.6% (Q1 2017: 27.1%). EBIT Earnings before interest and tax (EBIT) were stable at DKK 68 million (Q1 2017: DKK 68 million) in Q1 2018, corresponding to an EBIT margin of 19.5% (Q1 2017: 18.7%). DISCONTINUED OPERATIONS In 2017, the Group initiated a sales process for activities in Krasnodar, Russia. Consequently, the net result related hereto is classified as discontinued operations of DKK -4 million (Q1 2017: DKK -6 million). The group is in the proces of identifing potential investors. BALANCE SHEET Goodvalley s balance sheet amounted to a total of DKK 2,793 million (Q1 2017: DKK 2,694 million) at 31 March 2018. Goodvalley s net working capital was DKK 579 million (Q1 2017: DKK 571 million) at 31 March 2018. The Group s invested capital was DKK 2,412 million (Q1 2017: DKK 2,495 million) and return on invested capital (ROIC) increased to 13.0% (Q1 2017: 7.4%) driven by Goodvalley s increased LTM earnings. The Group s total equity stood at DKK 1,310 million (Q1 2017: DKK 1,259 million) at year-end, and the equity ratio was stable at 46% (Q1 2017: 47%). At 31 March 2018, Goodvalley s net interest-bearing debt was DKK 1,098 million (Q1 2017: DKK 1,231 million), and the Group s financial gearing ratio was 2.7 (Q1 2017: 4.3). EVENTS AFTER THE BALANCE SHEET DATE On 12 April 2018, Goodvalley successfully completed the acquisition of PP Galytski Agrarni Inv estytsii forming an asset deal for the corporate rights for farming 6,500 hectares of leasehold farmland in the Ivano-frankivsk region. The acquisition is an important step in the expansion of Goodval ley s operations in Ukraine. OPERATING CASH FLOW, DKK MILLION 120 104 100 80 78 60 55 47 45 43 40 20 0 Q1 2017 ROIC, % Q2 2017 Q3 2017 Q4 2017 Q1 2018 15 12.9 13.0 12.8 12 10.6 11.3 9 7.4 7.2 6 3 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Page 5

Financial performance PIG The Pig segment sold 27,999 tonnes of pork (Q1 2017: 30,108 tonnes) and generated revenue of DKK 247 million (Q1 2017: DKK 263 million) in Q1 2018. Revenue is comprised of external revenue from sales of live pigs and internal revenue from sales Total income came to DKK 275 million (Q1 2017: DKK 274 million) and includes fair value adjustment and other income. Total income was affected by fair value price changes in the quarter entailing a higher price at the balance sheet date as compared PIG PRICE, DKK/KG AND MEAT TO FEED RATIO 15 12.84 12.71 12 11.26 10.84 10.68 18 16 to Goodvalley s Food segment. The segment accounted for 53% to the price changes in the same quarter in 2017. 9 12 of Group revenue before segment eliminations (Q1 2017: 56%). Revenue was affected by a decline in slaughter pig volumes sold Adjusted EBITDA decreased to DKK 57 million (Q1 2017: DKK 73 million) corresponding to an Adjusted EBITDA margin of 23.1% 6 3 6.99 7.0 7.81 7.86 7.35 7.13 8 4 in Poland and Ukraine as well as substitution in the product mix towards weaner sales due to temporary reduced capacity (Q1 2017: 27.9%). The decrease was driven mainly by lower revenue and higher segment overhead for labour, spare parts and other 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 0 at the Group s farms and favorable contracts for weaner sales. The average pig price decreased slightly to DKK 10.68 per kilo costs related to the renovation of farms in Ukraine related to the Group s Global GAP certification. The decrease was partly SOWS BY COUNTRY, % (Q1 2017: DKK 10.84 per kilo), and the feed price was lower at DKK offset by lower feed consumption by fewer slaughter pigs raised 1.50 per kilo (Q1 2017: DKK 1.55 per kilo), entailing an improved as well as a significant increase in efficiency as Goodvalley sold 12% meat-to-feed ratio of 7.13 (Q1 2017: 6.99). The total number of 32.2 pigs per sow (Q1 2017: 30.5) and maintained a strong feed sows was 41,118 at end of Q1 2018 (Q1 2017: 41,897) conversion ratio of 2.75 (Q1 2017: 2.75). 34% 54% EBITDA was DKK 81 million (Q1 2017: DKK 82 million) in Q1 2018. POLAND UKRAINE RUSSIA DKK million Q1 2018 Q1 2017 2017 PIGS SOLD, THOUSAND TONNES (LIVE WEIGHT) External revenue 149 167 701 Internal revenue 98 96 434 REVENUE 247 263 1.135 31 30 29 30.1 29.3 28.4 29.8 28.0 Change in fair value 28 9 (10) 28 Other income - 2 22 27 TOTAL INCOME 275 274 1.147 EBITDA 81 82 368 ADJUSTED EBITDA 57 73 374 26 25 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Adjusted EBITDA margin 23.1% 27.9% 33.0% Page 6

Financial performance PIG PIGS SOLD PER SOW, HEADS 33 32 32.2 31 30.5 30.9 30.7 30.8 30 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 FEED CONVERSION RATIO, KG (WHOLE HERD) 3.0 2.9 2.8 2.7 2.6 2.5 2.75 2.75 2.73 2.75 2.75 0.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Page 7

Financial performance FOOD The Food segment comprises the Polish slaughterhouse and food processing plant, constituting the final stage in the vertically integrated business model. Goodvalley s Food segment sold 12,951 tonnes of pork (Q1 2017: 12,651 tonnes) in Q1 2018, generating revenue of DKK 189 million (Q1 2017: DKK 182 million), accounting for 40% of Group revenue before segment eliminations in Q1 2018 (Q1 2017: 38%). The product mix was stable as compared to Q1 2017, and 61% of total tonnes sold came from sales of deboned meat, 22% from processed products and 17% was sold as MAP (Modified Atmosphere Packaging) products. 82% of revenue was generated in Poland, 7% in other EU countries, and 11% in other countries. In Q1 2018, the segment s EBITDA increased to DKK 6 million (Q1 2017: DKK 1 million), corresponding to an EBITDA margin of 3.3% (Q1 2017: 0.3%). The positive development was driven by the slight decrease in input prices as compared to Q1 2017, partly offset by delayed contracts with a few customers as well as the impact from temporarily lower capacity utilisation due to a decision to increase average sales weight for 1st class finishers in the Pig segment in Poland. Based on learnings from the roll-out of Goodvalley s new brand and thorough market research in Ukraine, management will decide on the timing and layout of the contemplated Ukrainian slaughterhouse, which remains a key priority. DISTRIBUTION CHANNELS (Q1 2018) 18% 10% 9% 6% 57% SALES SPLIT, % (Q1 2018) 17% RETAIL WHOLESALE EXPORT INDUSTRIAL PROCESSORS OTHER 22% 61% DEBONED PROCESSED MAP SALE OF PORK, THOUSAND TONNES 15 DKK million Q1 2018 Q1 2017 2017 REVENUE 189 182 767 Other income 1 (2) 2 TOTAL INCOME 190 180 769 EBITDA 6 1 (9) 14 13 12 11 12.7 11.9 12.5 12.9 13.0 EBITDA margin (%) 3.3% 0.3% (1.2%) 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Page 8

Financial performance ARABLE The Arable segment generated revenue of DKK 8 million (Q1 2017: DKK 0 million). The segment s revenue is comprised of external revenue from sales of crops and internal revenue from sales of crops for feed and energy production. The Arable segment accounted for 2% of Group revenue before segment eliminations (Q1 2017: 0%). Total income came to DKK 37 million (Q1 2017: DKK 31 million) and includes revenue and the change in fair value of Goodvalley s crops in progress at the balance sheet date as well as grants and other income. EBITDA was stable at DKK 5 million (Q1 2017: DKK 6 million). Goodvalley s total arable land amounted to approximately 28,000 hectares at the end of Q1 2018, and the land bank has subsequently been expanded as the Ukrainian business acquired the corporate rights in the farming business PP Galytski Agrarni Investytsii, which operates 6,500 hectares of leasehold farmland in the Ivano-frankivsk region. The acquisition was completed on 12 April and constitutes an important step in the expansion of Goodvalley s operations in Ukraine. DKK million Q1 2018 Q1 2017 2017 External revenue - - 54 Internal revenue 8-121 REVENUE 8-175 Change in fair value 26 28 6 Grants and other income 3 3 15 TOTAL INCOME 37 31 196 EBITDA 5 6 39 EBITDA margin (%) n.a. n.a. 22.3% Page 9

Financial performance ENERGY The Energy segment consists of nine biogas plants of which eight are situated in Poland and one in Ukraine. Goodvalley produced 16.5 GWh electricity (Q1 2017: 16.4 GWh) and generated stable revenue of DKK 19 million (Q1 2017: DKK 20 million). The Energy segment s revenue is comprised of revenue from external sales of electricity and internal sales of heat and electricity to Goodvalley s Pig and Food segments. The Energy segment s external revenue was DKK 12 million (Q1 2017: DKK 15 million), and the decline was partly offset by an increase in internal revenue to DKK 7 million (Q1 2017: DKK 5 million). In Q1 2018, the Energy segment accounted for 4% of Group revenue before segment eliminations (Q1 2017: 4%). The segment s EBITDA was DKK 6 million (Q1 2017: DKK 8 million), corresponding to an EBITDA margin of 32.4% (Q1 2017: 40.0%). Efficiency was stable around 90% for the eight Polish plants and 87% for the plant in Ukraine, which has improved and stabilised technical performance during 2017 and in Q1 2018. PRODUCED ELECTRICITY, GWH 16.5 16.5 16.4 16.0 16 15.8 15.5 15.3 15 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 EFFICIENCY, % 92 88 84 80 89 89 85 85 81 76 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 DKK million Q1 2018 Q1 2017 2017 External revenue 12 15 61 Internal revenue 7 5 24 REVENUE 19 20 85 Grants and other income - - 2 TOTAL INCOME 19 20 87 EBITDA 6 8 17 EBITDA margin (%) 32.4% 40.0% 20.0% Page 10

Outlook Based on year-to-date performance as well as our current expectations for the rest of the year, we maintain our guidance for the financial year 2018 for the Group as a whole. As previously reported, for 2018 Goodvalley expects to generate revenue of DKK 1,550-1,700 million and Adjusted EBITDA of DKK 340-425 million. The outlook for 2018 is based on an average market price for live pigs of DKK 11.2 per kilo and fixed 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 EBITDA may thus deviate significantly from this outlook. DKK MILLION 2018 OUTLOOK REVENUE 1,550-1,700 ADJUSTED EBITDA 340-425 This report contains forward-looking statements reflecting Goodvalley s current forecasts of future events, operational performance and financial results. Such statements are subject to uncertainty as factors within and beyond Goodvalley s control may cause actual performance and results to differ materially from the forecasts in this report. Such factors include, among other things, the fair value of pigs, global and local market prices of pork meat, changes in consumer preferences and demand, consumer purchasing power, competition, any outbreak of animal diseases or epidemics, the supply of utilities, development in financial markets and changes or amendments to legislation, regulation or the political situation in Goodvalley s markets. See also the section on risk management and note 4.2 to the annual financial statements for 2017. FINANCIAL CALENDAR 2018 21 AUGUST 2018: INTERIM REPORT Q2 2018 27 NOVEMBER 2018: INTERIM REPORT Q3 2018 Page 11

Management statement The Board of Directors and the Executive Board have today considered and approved the interim report of Goodvalley A/S for the period 1 January 2018 31 March 2018. This interim financial report is prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, cf. chapter on accounting policies and additional Danish disclosure requirements for interim reports of listed companies. This interim report is unaudited and has not been reviewed by the Group s auditors. Executive Board Tom Axelgaard Hans Henrik Pauk Pedersen Kristian Brokop Chief Executive Officer Chief Financial Officer Chief Operating Officer In our opinion, we consider the applied accounting policies to be appropriate to the effect that this interim report gives a true and fair view of the Group s assets, liabilities and financial position at 31 March 2018 and of the results of the Group s operations and cash flows for the period 1 January 2018 31 March 2018. Furthermore, we consider the Management Review (on page 2-11) to give a true and fair review of the development of the Group s operations and financial affairs, profit for the period and of the Group s financial position for the period as a whole as well as a description of the most significant risks and uncertainty factors that the Group is facing. Board of Directors Anders Christen Obel Niels Rauff Hansen Anders Bundgaard Chairman Vice Chairman Jens Jørgen Nielsen Erling Bech Poulsen Helle Okholm Apart from the information set out in this interim report, there have been no changes to the Group s significant risks and uncertainties that have not been disclosed in the Annual Report 2017. Page 12

Financial Statements Page 13

Statement of comprehensive income INCOME STATEMENT DKK MILLION Q1 2018 Q1 2017 2017 Revenue 351 365 1,620 STATEMENT OF COMPREHENSIVE INCOME DKK MILLION Q1 2018 Q1 2017 2017 Profit for the year 54 48 114 Change in fair value of biological Assets 54 37 (5) Grants and other income 5 5 38 TOTAL INCOME 410 407 1,653 Cost of goods sold (COGS) (288) (291) (1,142) GROSS PROFIT/(LOSS) 122 116 511 SG&A (25) (17) (85) EBITDA 97 99 426 Items that may be reclassified subsequently to profit or loss Exchange adjustments of foreign enterprises (9) (21) (13) TOTAL COMPREHENSIVE INCOME 45 27 101 Comprehensive income is attributable to: Owners 45 27 101 TOTAL 45 27 101 Depreciation, amortisation and impairment losses (29) (31) (122) PROFIT/(LOSS) BEFORE FINANCIAL 68 68 304 EXPENSES AND TAX Financial income 2 1 7 Financial expenses (16) (16) (93) Exchange rate adjustments 4 1 (48) PROFIT/(LOSS) BEFORE TAX 58 54 170 Income tax - - (1) PROFIT/(LOSS) OF CONTINUING OPERATIONS 58 54 169 Profit /(loss) for the year of discontinued operations (4) (6) (55) PROFIT/(LOSS) 54 48 114 Profit / (Loss) is attributable to: Owners 54 48 114 TOTAL 54 48 114 Page 14

Balance sheet ASSETS DKK MILLION Q1 2018 Q1 2017 2017 Goodwill 92 104 94 INTANGIBLE ASSETS 92 104 94 Land and buildings 1,008 1,048 1,011 Leasehold improvements 120 131 123 Plant and machinery 255 266 257 Other fixtures and fittings, tools and equipment 108 129 111 Property, plant and equipment in progress 130 113 116 PROPERTY, PLANT AND EQUIPMENT 1,621 1,688 1,618 Non-current asset investment 3 6 3 FINANCIAL ASSET INVESTMENTS 3 6 3 Biological assets - basic herd 117 126 118 BIOLOGICAL ASSETS 117 126 118 NON-CURRENT ASSETS 1,833 1,924 1,833 Biological assets - sales herd 226 229 196 Biological assets - Arable, crop production 80 79 53 Inventories 249 244 273 BIOLOGICAL ASSETS AND INVENTORIES 555 552 522 Trade receivables 72 75 76 Receivables from associates - - 7 Other receivables 37 68 41 Prepayments 52 31 27 RECEIVABLES 161 174 151 Cash at bank and in hand 173 45 171 Assets held for sale 71-74 CURRENT ASSETS 960 771 918 LIABILITIES AND EQUITY DKK MILLION Q1 2018 Q1 2017 2017 Share capital 538 531 538 Other reserves - - - Reserve for exchange adjustments (500) (498) (491) Retained earnings 1,272 1,212 1,218 CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS 1,310 1,245 1,265 Non-controlling interests - 14 - TOTAL EQUITY 1,310 1,259 1,265 Bond debt 966-964 Provision for deferred tax 5 5 5 Other provisions 3 1 3 Credit institutions 58 853 68 Subordinated loan from Polen Invest A/S 90 120 90 Non-current trade payables - 13 - Deferred income 9 11 9 LONG-TERM LIABILITIES 1,131 1,003 1,139 Credit institutions 127 234 125 Subordinated loan from Polen Invest A/S 25 25 24 Trade payables 78 80 73 Other provisions 1 10 1 Other payables 45 79 42 Deferred income 5 4 8 SHORT-TERM LIABILITIES 281 432 273 Liabilities of disposal group classified as held for sale 71-74 LIABILITIES 1,483 1,435 1,486 LIABILITIES AND EQUITY 2,793 2,694 2,751 ASSETS 2,793 2,694 2,751 Page 15

Statement of changes in equity Q1 2018 DKK MILLION SHARE CAPITAL RESERVE FOR EXCHANGE ADJUSTMENTS RETAINED EARNINGS E Q U I T Y O W N E R S NON-CONTROLLING INTERESTS TOTAL EQUITY EQUITY AT 1 JANUARY 2018 538 (491) 1,218 1,265-1.265 Net profit/(loss) for the year - - 54 54-54 Other comprehensive income - (9) - (9) - (9) COMPREHENSIVE INCOME FOR THE YEAR - (9) 54 45-45 EQUITY AT 31 MARCH 2018 538 (500) 1,272 1,310-1,310 Q1 2017 DKK MILLION SHARE CAPITAL RESERVE FOR EXCHANGE ADJUSTMENTS RETAINED EARNINGS E Q U I T Y O W N E R S NON-CONTROLLING INTERESTS TOTAL EQUITY EQUITY AT 1 JANUARY 2017 531 (477) 1,164 1,218 14 1,232 Net Profit/(loss) for the year - - 48 48-48 Other comprehensive income - (21) - (21) - (21) COMPREHENSIVE INCOME FOR THE YEAR - (21) 48 27-27 EQUITY AT 31 MARCH 2017 531 (498) 1,212 1,245 14 1,259 Page 16

Statement of cash flows STATEMENT OF CASH FLOWS DKK MILLION Q1 2018 Q1 2017 2017 PROFIT/(LOSS) 54 48 114 Adjustments: Financial income and expenses 14 15 90 Exchange rate adjustments (4) (1) 36 Depreciation of property, plant and equipment 29 39 125 Tax on the Profit/(loss) for the year - - - Other adjustments (1) (7) 34 Change in working capital (35) (33) (49) STATEMENT OF CASH FLOWS DKK MILLION Q1 2018 Q1 2017 2017 Proceeds from borrowings 4 84 1,206 Repayments of borrowings (7) (154) (1,185) Capital contribution - 20 23 Dividends payments - - (75) CASH FLOWS FROM FINANCING ACTIVITIES (3) (50) (31) CHANGE IN CASH AND CASH EQUIVALENTS 2 (31) 100 Cash and cash equivalents at 1 January 171 75 75 Exchange adjustment, beginning, cash and cash equivalents - 1 (4) CASH FLOWS FROM OPERATING ACTIVITIES BEFORE FINANCIAL INCOME AND EXPENSES 57 61 350 CASH AND CASH EQUIVALENTS 173 45 171 Financial receipts 2 11 7 Financial payments (16) (18) (84) CASH FLOWS FROM ORDINARY ACTIVITIES 43 55 273 Corporation Income tax paid - - 1 CASH FLOWS FROM OPERATING ACTIVITIES 43 55 274 Purchase property, plant and equipment (42) (32) (152) Sale of property, plant and equipment 3 4 9 Change of financial investments - - (3) Sale of fixed asset investments 1-3 CASH FLOWS FROM INVESTING ACTIVITIES (38) (28) (143) Page 17

Note 1 - Accounting principles This interim financial report is prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. The accounting policies are unchanged from those applied in the Annual Report for 2017, to which reference is made. GROSS PROFIT FULLY SPLIT BY NATURE: DKK MILLION Q1 2018 Q1 2017 GROSS PROFIT FULLY SPLIT BY NATURE: Gross profit reported 122 116 Staff expenses 39 21 SG&A (12) (8) GROSS PROFIT BY NATURE 149 129 Goodvalley has implemented all new and amended standards (IFRS) and interpretations (IFRIC) as endorsed by the EU and which are effective for the financial year 1 January 31 December 2018. This implementation has had no impact on the recognition and measurement of the Group s assets and liabilities. The group has implemented IFRS 15 'Revenue from Contracts with Customers'. IFRS 15 replaces the current standards on revenue (IAS 11 'Construction Contracts' and IAS 18 'Revenue ). There is no significant effect on the financial statements. Goodvalley has implemented IFRS 9. There is no material effect on the consolidated interim report from the implementation. As described in the Annual Report for 2017, the income statement is presented partly by function in order to better reflect the management of the group. EBITDA is considered to be a key financial figure for the group stakeholders, why the depreciation is kept in one line. Income statement split by function is illustrated below: INCOME STATEMENT SPLIT BY FUNCTIONS (DEPRECIATION): Revenue 410 407 Cost of goods sold including depreciation and amortisation (315) (317) GROSS PROFIT 95 90 SG&A, including depreciation and amortisation (27) (22) EBIT 68 68 DEPRECIATION AND AMORTISATION CONSIST OF: Amortisation of intangible assets 0 0 Depreciation of tangible assets (29) (31) TOTAL DEPRECIATION AND AMORTISATION (29) (31) DEPRECIATION AND AMORTISATION ARE DIVIDED INTO: Cost of goods sold (27) (28) Sales and administrative costs (2) (3) TOTAL DEPRECIATION AND AMORTISATION (29) (31) Page 18

Note 2 - Segment information Q1 2018 DKK MILLION PIG ARABLE ENERGY FOOD OTHER NOT ALLOCATED INTERCOMPANY ELIMINATIONS TOTAL Revenue 247 8 19 189 8-471 Revenue - Intracompany eliminations - (8) (7) - (7) (98) (120) Change in fair value of biological assets 28 26 - - - - 54 Grants and other income - 3-1 1-4 Grants and other income - Intracompany eliminations - - TOTAL INCOME 275 29 12 190 2 - (98) 410 Cost of goods sold (COGS) (181) (31) (12) (178) - - (402) COGS Intracompany eliminations 8-8 - - 98 114 GROSS PROFIT/(LOSS) 102 (2) 8 12 2 - - 122 SG&A (13) (2) (1) (6) (10) - (32) SG&A Intracompany eliminations - - - - - 7 7 EBITDA 89 (4) 7 6 (8) - 7 97 EBITDA before segment eliminations 81 5 6 6 ( 2 ) - - - Depreciation on non-curent assets and impairment losses (15) (4) (3) (5) (2) - - (29) EBIT 74 (8) 4 1 (10) - 7 68 Net financials (14) - (14) Exchange rate adjustments 4-4 PROFIT/(LOSS) 74 (8) 4 1 (10) (10) 7 58 Page 19

Note 2 - Segment information Q 1 2 0 1 7 DKK MILLION PIG ARABLE ENERGY FOOD OTHER NOT ALLOCATED INTERCOMPANY ELIMINATIONS TOTAL Revenue 263-20 182 8-473 Revenue - Intracompany eliminations - - (5) - (7) (96) (108) Change in fair value of biological Assets 9 29 - - - - 38 Grants and other income 2 3 - (2) - - 3 Grants and other income - Intracompany eliminations - - TOTAL INCOME 274 32 15 180 1 - (96) 407 Cost of goods sold (COGS) (183) (24) (12) (175) 0 - (394) COGS Intracompany eliminations 1 7 96 104 GROSS PROFIT/(LOSS) 92 8 10 5 1 - - 116 SG&A (8) (2) - (4) (7) - (22) SG&A Intracompany eliminations - - - - - 5 5 EBITDA 84 6 10 1 (6) - 5 99 EBITDA Before segment eliminations 82 6 8 1 - - - - Depreciation on non-curent assets and impairment losses (31) - (31) EBIT 83 7 10 - (6) (30) 5 68 Net financials (15) - (15) Exchange rate adjustments 1-1 PROFIT/(LOSS) 83 7 10 - (6) (44) 5 54 Page 20

Note 3 - Biological assets BIOLOGICAL ASSETS DKK MILLION BASIC HERD SALES HERD TOTAL HERD 2018 Opening balance as of 1 January 118 196 314 Movements: Acquisitions 1-1 Produced piglets, cattles - 87 87 Gain/loss from change in fair value 12 176 188 Sales (7) (239) (246) BIOLOGICAL ASSETS DKK MILLION Q1 2018 Q1 2017 Crop production Opening balance as of 1 January 53 49 Acquisitions 15 17 Gain/(loss) from change in fair value 11 12 Harvest - - Exchange adjustments - 1 CLOSING BALANCE 80 79 Transfer between groups (7) 7 - Exchange adjustments - (1) (1) CLOSING BALANCE - VALUES AS OF 31 MARCH 117 226 343 2017 Opening balance as of 1 January 121 216 337 Movements: Acquisitions 2-2 Produced piglets, cattles - 134 134 Gain/loss from change in fair value 17 125 141 Sales (8) (256) (264) Transfer between groups (10) (10) - Exchange adjustments 4 1 5 CLOSING BALANCE - VALUES AS OF 31 MARCH 126 229 355 Additions for piglets are calculated as the value of weaners at standard rates. Gain on changes in fair value comprises changes as a consequence of biological growth and price changes. Disposals from sales and transfer amounts are calculated using the fair value per unit from previous period. Transfer between groups covers pigs transferred to own breeding as young females. Page 21

Obligor Group BOND TERMS Issuer Security package: Original Guarantors: Status of the bond: Currency: Initial debt amount: Total framework: Other facilities: Tenor: Goodvalley A/S First ranking security over material assets and share pledges Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC Senior secured EUR EUR 135 million EUR 270 million Super senior RCF up to DKK 125 million, governed under an inter-creditor agreement with bondholders. Basket of DKK 80 million for factoring. 4 years Pricing: 3m EURIBOR + 450bps p.a., quarterly interest payments, EURIBOR floor of 0.0 % Rating: Call options: Incurrence test: Unrated Non call during the first 24 months, then 50/25/0 % of initial coupon after 24/36/42, month respectively. NIBD/EBITDA LTM fixed herd price (net leverage) of < 2.75x for any additional debt raised. Restricted payments: Dividends or cash contributions to Restricted Subsidiaries are payable up to Net Leverage of < 2.75x Information covenant: Annual audited statements, quarterly unaudited reports. General undertakings: Inter alia restrictions on distributions, mergers, demergers, acquisitions, disposals, financial indebtedness, negative pledge, financial support, subsidiary distribution customary for a HY bond. Change of control: Investor put at 101 % Equity claw: 35% Listing of bonds: Trustee: Governing law: Nasdaq Copenhagen. Nordic Trustee. Danish law. Page 22

Glossary GENERAL Group Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC. PRODUCTION ASF African swine fever. Arable stock, WIP The arable stock in the fields which is not yet harvested. Basic herd The part of the pig herd, which consists of sows, maiden gilts and boars. Bio assets Biological assets (mainly pigs and crops). Bioenergy Energy produced based on biological resources. Biosecurity Level of measures taken to prevent infection by contagious diseases. Certificates on biogas Energy units used for calculating extra price for sold kwh on top of market price (based on political decisions). Crop split The split between the different types of crops grown in the fields. Cultivated land Land used for crop production. Efficiency Measurable technical results from the production. Feed conversion ratio Kilo of feed used for one kilo meat produced (live weight). Immunization strategy Strategy for improving the immunity of the pigs mainly by vaccination. Live weight Weight of the pig before slaughtering and deboning. Modified Atmosphere Pack aging (MAP) A packing method where the products are packed in a sealed and protected atmosphere to increase the period from manufacturing to last sales date. Meat-to-feed ratio Price of one kilo meat (carcass weight) divided by the price of one kilo feed. Oil seeds Crops that contain oil. Typically rape seed, soya and sunflower. Piglets Pigs in farrowing before they are weaned from the sow. Pig price Price per kilo pig meat in carcass weight. Processed products Meat products which have been cooked, smoked or salted. Sales herd The part of the pig herd that consist of piglets, weaners and slaughter pigs. Carcass weight Weight of the pig in kilos of meat after slaughtering and deboning. Slaughter pigs Pigs from 30 kilo live weight to slaughter (app. 120 kilo). Weaners A pig in the period between weaning from the sow and slaughter pig (approximately 6.5-30 kilo). Page 23

Our ambition We work for a better tomorrow We will achieve this by these five guiding principles We improve our work environment to be the preferred local workplace We reduce our use of resources and limit our environmental impact We deliver high quality products and aim to improve animal and human health We impact consumer awareness to create a pull towards sustainable food consumption We strengthen our traceability to locate the origin of our products Goodvalley is a vertically integrated food producer with operations within pig farming, slaughtering and meat processing, arable and feed mills as well as biogas production. Headquartered in Denmark, we operate modern facilities with the most advanced technology and farming methods in Poland, Ukraine and Russia. We apply Danish pig farming principles of sustainability and efficiency in countries with less expensive land prices, oversupply of crops, lower labour costs and prospects of meat consumption and pig price increases. This interim report was released through Nasdaq Copenhagen as company announcement no. 5/2018. All trademarks such as trade names and other names and designations highlighted in this report are trademarks protected and owned by Goodvalley A/S. 2018 Goodvalley A/S