CONFERENCE CALL 28 FEBRUARY 2020 Annual report 2019 Agenda - PowerPoint PPT Presentation

CONFERENCE CALL 28 FEBRUARY 2020 Annual report 2019

Agenda SPEAKERS FACTS AND FIGURES – 2019 SEGMENT OVERVIEW POLAND UKRAINE RUSSIA OUTLOOK 2020 Q&A SESSION HANS HENRIK PEDERSEN KRISTIAN BROKOP CEO VICE CEO 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 Annual report 2019

Facts and figures – 2019 IMPROVED PERFORMANCE IN A VOLATILE YEAR 3 Annual report 2019

Segment overview Goodvalley has established a solid land bank of 38,300 hectares and a well-diversified production network of 34 farms resulting in strong market positions in Poland and Ukraine as well as a solid platform in Russia. POLAND UKRAINE RUSSIA We sharpened our consumer Optimisation was crucial We increased production focus in 2019 to build a strong to alleviate impact of tough and prepared for further food brand external conditions expansion 3,900 LEAN +4% Stores across Poland sold Goodvalley’s Contributed to countering efficiency Growth in live pigs sales volume branded products challenges in 2019 REVENUE, DKK MILLION, AND ADJUSTED EBITDA MARGIN, % 138 240 244 48 228 48 122 212 42 97 35 74 16.8 15.0 38.0 31.0 9.3 37.9 21.6 28.6 28.0 18.5 3.3 10.7 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2019 4 Annual report 2019

Poland I SALE OF PORK, THOUSAND TONNES 54,750 51,297 49,953 38,952 2016 2017 2018 2019 FOOD PRODUCT PORTFOLIO Deboned Value added 39.0 meat products thousand 46% 54% tonnes SALE OF BRANDED PRODUCTS, TONNES 293 258 224 165 99 79 15 17 Q1 Q2 Q3 Q4 Q1* Q2 Q3 Q4 2018 2019 *Impact incl. one-off effect from in-outs. 5 Annual report 2019

Poland II Higher revenue driven by price increase PIG PRICE, DKK/KG AND MEAT TO FEED RATIO Lower pork meat sales due to high input costs • 12.10 11.91 10.63 10.44 Live pig sales increased at higher average price • 7.25 6.70 6.43 5.99 Improved profitability 2016 2017 2018 2019 Significantly higher pig price and stable feed costs • PIGS SOLD PER SOW, HEADS Efficiency improvements driven by organisational and • management changes 30.7 30.3 30.1 30.0 Sharp decline in contribution from sales of pork meat • 2016 2017 2018 2019 DKK million 2019 2018 Q4 2019 Q4 2018 FEED CONVERSION RATIO, KG (WHOLE HERD) 925 907 244 220 REVENUE EBITDA 190 38 61 (24) 2.82 2.80 2.80 2.76 112 45 41 (12) ADJUSTED EBITDA 12.1% 5.0% 16.8% (5.5%) ADJUSTED EBITDA MARGIN 2016 2017 2018 2019 6 Annual report 2019

Ukraine Revenue lifted by price and volume growth PIG PRICE, DKK/KG AND MEAT TO FEED RATIO Average pig price increased by 11% • 12.56 11.04 11.34 Low crop yield of 4.2 tonnes per hectare (2018: 5.7 tonnes) 8.26 • 7.85 7.55 7.40 5.85 Lower profitability after unsatisfactory arable results 2016 2017 2018 2019 Harsh weather conditions impacted performance • PIGS SOLD PER SOW, HEADS Pig production efficiency increased despite cases of • stomach ulcers in the herd 33.3 32.8 32.3 31.4 2016 2017 2018 2019 DKK million 2019 2018 Q4 2019 Q4 2018 FEED CONVERSION RATIO, KG (WHOLE HERD) REVENUE 429 393 122 102 118 110 43 9 EBITDA 2.68 2.71 2.65 2.57 113 112 38 17 ADJUSTED EBITDA 26.3% 28.5% 31.1% 16.7% ADJUSTED EBITDA MARGIN 2016 2017 2018 2019 7 Annual report 2019

Russia Stable revenue despite volume growth PIG PRICE, DKK/KG AND MEAT TO FEED RATIO Sharp decline in the average sales price for live pigs • 13.36 12.46 12.42 11.58 Lower-than-expected arable yield • 9.09 8.54 7.79 7.12 External conditions impacted profitability 2016 2017 2018 2019 Stable pig production performance • PIGS SOLD PER SOW, HEADS Low pig price reduced earnings • 32.8 32.9 Challenging weather impacted the arable production • 29.7 28.3 2016 2017 2018 2019 DKK million 2019 2018 Q4 2019 Q4 2018 FEED CONVERSION RATIO, KG (WHOLE HERD) 172 173 42 48 REVENUE 3.14 EBITDA 46 68 9 5 2.73 2.70 2.69 49 69 7 17 ADJUSTED EBITDA 28.5% 39.9% 16.7% 35.4% ADJUSTED EBITDA MARGIN 2016 2017 2018 2019 Annual report 2019

Outlook 2020 GOODVALLEY EXPECTS HIGHER REVENUE AND EARNINGS IN 2020 FINANCIAL OUTLOOK DKK million 2019 actuals 2020 outlook Revenue 1,526 1,600-1,750 Adjusted EBITDA 274 320-380 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 2020 is based on an average market pig price for live pigs of DKK 12.90 per kilo slaughter pig and a feed price of DKK 1.65 per kilo at Group level. The outlook is furthermore based on exchange rates for the Group’s key currencies remaining at the closing rates on December 2019 for the full year. The outlook represents our current expectations for the development in the Group’s revenue and Adjusted EBITDA, an d Goodvalley’s EBITDA may thus deviate significantly from this outlook. 9 Annual report 2019

Questions 10

Contact information HANS HENRIK PEDERSEN KRISTIAN BROKOP CEO VICE CEO FINANCIAL CALENDAR 2020 23 APRIL 2020 Annual general meeting 28 MAY 2020 Interim report Q1 2020 GOODVALLEY A/S 21 AUGUST 2020 Interim report Q2 2020 Vesterbrogade 4A 26 NOVEMBER 2020 Interim report Q3 2020 DK-1620 Copenhagen Tel.: +45 76 52 20 01 Mail: investor@goodvalley.com Web: www.goodvalley.com 11 Annual report 2019

Appendix 12

Key figures and financial ratios DKK million Q4 2019 Q4 2018 2019 2018 DKK million Q4 2019 Q4 2018 2019 2018 Income statement Financial ratios Revenue 405 371 1,526 1,473 39.3 9.4 Gross margin 31.0 22.6 28.1 (0.5) Total income 409 315 1,644 1,493 EBITDA margin 23.2 14.4 Gross profit 159 35 474 333 22.0 8.6 Adjusted EBITDA margin 17.9 15.1 EBITDA 114 (2) 354 212 18.5 (8.4) EBIT margin 13.5 6.2 Adjusted EBITDA 89 32 274 222 10.6 (1.9) Free cash flow / revenue 7.9 (5.1) EBIT 75 (31) 207 91 48.3 (21.9) Cash conversion 58.6 87.4 40 37 100 257 Capex Financial items, net (9) (14) (18) (65) 4.1​ 5.3​ NIBD/Adjusted EBITDA LTM 4.1 5.3 Profit/(loss) for the period 68 (49) 188 18 53.6​ 46.8​ Equity ratio 53.6 46.8 Adjusted profit 33 (21) 59 36 3.9​ 4.9​ ROIC 4.9 3.9 FTE 2,269 2,327 2,269 2,327 Cash flow Operating activity 74 48 205 194 Share ratios Investing activity (31) (55) (83) (269) Free cash flow 43 (41) 121 75 Earnings per share, DKK 1.3 (0.9) 3.5 0.3 Financing activity (27) (37) (97) (28) Balance sheet Non current assets 2,105 1,927 2,105 1,927 Net working capital 585 475 585 475 Invested capital 2,690 2,402 2,690 2,402 Total assets 2,929 2,630 2,929 2,630 Equity 1,568 1,230 1,568 1,230 Net interest-bearing debt 1,122 1,171 1,122 1,171 Note: Years 2013-2016 have been restated in accordance with new accounting principles 13 Annual report 2019

Goodvalley Bond Obligor Group 1 DKK million Q4 2019 Q4 2018 2019 2018 Goodvalley Bond Obligor Group Revenue 368 328 1,359 1,305 Total income 374 280 1,479 1,323 EBITDA 104 (4) 306 144 Adjusted EBITDA 80 15 223 153 Net interest-bearing debt 1,082 1,177 1,082 1,177 Adjusted EBITDA LTM 223 153 223 153 NIBD/Adjusted EBITDA LTM 4.9 7.7 4.9 7.7 1 Bond Obligor Group consists of: Goodvalley A/S, Finansax ApS, Goodvalley Agro SA, Goodvalley Sp. Z o.o. Goodvalley Ukraine LLC 14 Annual report 2019