Annual Report 2018 CONFERENCE CALL CONFERENCE CALL 29 28 FEBRUARY - PowerPoint PPT Presentation

Annual Report 2018 CONFERENCE CALL CONFERENCE CALL 29 28 FEBRUARY 2019 FEBRUARY 2019

Agenda SPEAKERS GROUP HIGHLIGHTS MARKETS SEGMENTS GROUP FINANCIALS OUTLOOK 2018 STRATEGY Q&A SESSION TOM AXELGAARD HANS HENRIK PEDERSEN CEO CFO Founded Goodvalley in 1994 Goodvalley since 2016 DISCLAIMER 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 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Group highlights STRONG OPERATIONAL PERFORMANCE POSITION GOODVALLEY FOR FUTURE GROWTH SOLID FINANCIALS STRONG EFFICIENCY IN SHAPE FOR THE FUTURE DKK 1,473m 31.6 pigs per sow Branded products Revenue declined by 9% to DKK 1,473 Goodvalley improved efficiency in terms Goodvalley launched its first range of million driven by lower pig and pork of sold pigs per sow from 30.6 in 2017 Goodvalley branded products in stores prices and volumes to 31.6 in 2018, being among the leading across Poland, offering a premium selection manufacturers relative to both the of climate friendly GMO-free products average in EU and North America from pigs raised without antibiotics. DKK 222m 2.75 kilo Climate Goodvalley realised a solid Adjusted Continued focus on effecient and Goodvalley obtained verification of EBITDA despite lower pig and pork prices sustianable production allowed for a CO2 neutrality at Group level in 2018 and harsh weather conditions stable and attractive whole herd feed after having been verified as CO2 neutral conversion ratio in Poland since 2013 36,500 hectares 2019 Stable upgrades The landbank increased by an additional Goodvalley expects revenue in the range The Group completed a series of stable 6,500 hectares in Ukraine and 2,000 of DKK [1,400-1,550] and Adjusted EBITDA Upgrades enabling higher production hectares in Russia increasing the Group’s of DKK [220-280] capacity and efficiency as well as total land bank by 30% amounting to a total animal welfare improvements of approximately 36,500 hectares. 1 1) In the report, Adjusted EBITDA refers to EBITDA before non-recurring items adjusted for herd price changes, cf. page 8. 3 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Market developments POLAND UKRAINE RUSSIA Solid market New renovations and upgrades Improved operational performance • • • Introducing premium branded Increasing consumption of pork Lower feed prices • • • products REVENUE REVENUE REVENUE 52% 27% 12% of total of total of total -12% -2% 5% growth growth growth 2014-2017 PIG PRICES DKK/KG (CARCASS WEIGHT ) Goodvalley (Poland) Goodvalley (Ukraine) Goodvalley (Russia) EU average 1 25 20 15 10 5 0 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 1 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 4 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Pig segment PIGS SOLD PER SOW PER YEAR, HEADS The average price decreased slightly with 1.1% to DKK 10.68 per kilo. 35 30.6 30.4 29.6 Revenue declined 6.1% to DKK 247 million • 30 26.8 26.1 Slaughter pigs volume declined due to reduced capacity 25 • 20 2013 2014 2015 2016 2017 Earnings driven by higher efficiency and lower feed consumption FEED CONVERSION RATIO, KG (WHOLE HERD) 2.9 2.9 Adjusted EBITDA declined 22% to DKK 57 million • 2.9 2.8 2.8 2.8 2.8 Stable feed price ensured attractive meat to feed ratio of 7.1 • 2.7 2.6 2.5 2013 2014 2015 2016 2017 DKK million 2018 2017 Q4 2018 Q4 2017 PIG PRICE, DKK/KG AND MEAT TO FEED RATIO External revenue 605 701 130 155 Internal revenue 420 434 131 99 14.2 15 12.8 11.9 11.2 10.0 REVENUE 1,025 1,135 261 254 10 7.5 7.5 7.2 6.5 6.3 200 368 1 27 EBITDA 5 210 374 30 83 ADJUSTED EBITDA 0 2013 2014 2015 2016 2017 20.5% 33.0% 11.5% 32.7% ADJUSTED EBITDA MARGIN 5 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Food segment SALE OF PORK, THOUSAND TONNES Increased volume in tonnes sold • Revenue increased 4% to 189 million 60 55 51 50 50 46 • The product mix remained stable 42 40 30 20 Earnings impacted by lower input prices 2013 2014 2015 2016 2017 • EBITDA increased due to lower input prices SALES SPLIT, % • Improved earnings in spite of increased sales weight MAP 19% 57% Deboned 24% Processed DKK million 2018 2017 Q4 2018 Q4 2017 REVENUE 733 767 177 184 (17) (9) (11) (5) EBITDA (2.3%) (1.2%) (6.2%) (2.7%) EBITDA MARGIN 6 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Arable and Energy segments GRAIN YIELD, AVG. TONNES PER HECTARE Arable revenue increased 5.8 • Revenue grew to DKK 8 million 6 5.3 5.1 4.9 4.1 4 • EBITDA was stable at DKK 5 million 2 • Expansion of land bank with 6,500 hectares to 34,500 hectares total 0 2013 2014 2015 2016 2017 Stable performance in Energy from high output PRODUCED ELECTRICITY, GWH • Revenue was largely unchanged at DKK 19 million 80 • Market price developments caused slight decline in EBITDA to DKK 6 62 63 58 55 60 53 million 40 20 0 2013 2014 2015 2016 2017 DKK million 2018 2017 Q4 2018 Q4 2017 DKK million 2018 2017 Q4 2018 Q4 2017 External revenue 38 54 15 1 External revenue 58 61 17 19 Internal revenue 140 121 50 54 Internal revenue 23 24 5 12 178 175 65 55 81 85 22 31 REVENUE REVENUE 7 39 5 8 14 17 3 4 EBITDA EBITDA 3.9% 22.3% 7.7% 14.5% 17.3% 20.0% 13.6% 12.9% EBITDA MARGIN EBITDA MARGIN 7 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Group financials REVENUE, DKK MILLION Solid revenue driven by Pig, Arable and Energy • Revenue declined 4% to DKK 351 million 2,000 1,620 1,405 1,270 1,275 1,500 1,209 • Strong operational performance 1,000 500 0 Increased profitability 2013 2014 2015 2016 2017 Adjusted EBITDA came to DKK 73 million • EBITDA MARGIN, % Net profit increased slightly to DKK 58 million • 29.9% 30 26.3% 24.7% 22.3% 21.0% 20 Solid cash flow development 10 • Operating cash flows amounted to DKK 43 million 0 2013 2014 2015 2016 2017 DKK million 2018 2017 Q4 2018 Q4 2017 OPERATING CASH FLOW, DKK MILLION 1,473 1,620 371 388 REVENUE 212 426 2 44 EBITDA 300 274 242 227 211 Herd price adjustment 10 6 30 55 200 162 222 431 32 99 ADJUSTED EBITDA 100 15.1% 26.6% 8.6% 25.5% ADJUSTED EBITDA MARGIN 0 2013 2014 2015 2016 2017 14.4% 26.3% 0.5% 11.3% EBITDA margin 8 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Outlook 2019 FINANCIAL OUTLOOK Goodvalley expects strong revenue and earnings in 2019 DKK million 2019 outlook 2018 actuals • Revenue of DKK 1,400-1,550 million Revenue 1,400-1,550 1,473 • Adjusted EBITDA of DKK 220-280 million Adjusted EBITDA 220-280 222 Reported EBITDA 2018 - 212 Performance is expected to be impacted by • Continued high production efficiency • Increased volumes due to increased capacity • High crop and feed prices due to bad weather conditions in 2018 COMMENTS AND ASSUMPTIONS 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. 9 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

Questions 10

Contact information TOM AXELGAARD HANS HENRIK PEDERSEN CEO CFO FINANCIAL CALENDAR 2019 27 May Q1 interim report GOODVALLEY A/S 27 August Q2 interim report Vesterbrogade 4A 27 November Q3 interim report DK-1620 Copenhagen Tel.: +45 76 52 20 01 Mail: investor@goodvalley.com Web: www.goodvalley.com 11 FULL-YEAR 2018 CONFERENCE CALL FULL-YEAR 2017 CONFERENCE CALL

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