First half of 2017 Investor presentation AUGUST 2017 CEO JENS - PowerPoint PPT Presentation

First half of 2017 Investor presentation AUGUST 2017 CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

2017H1 interim report 17.08.2017 2 Our value proposition Diversified portfolio 1 25 25 6,5 ,500 2 Leading B2B businesses 2 countries with employees major long-term production shareholders Active/long-term ownership 3 Europe based, global outlook 4 ROIC focused 5 Financially strong 6

2017H1 interim report 17.08.2017 3 Highlights in first half of 2017 Return on Invested Capital NIBD/EBITDA Revenue DKK 7.7bn 19.6% 0.6x ROIC incl. goodwill 16.1% NIBD increases due to acquisitions, higher activity, Growth 25% // 2016H1: 6.1bn Both organic and acquisitive growth ROIC remains comfortably above 15% target and seasonality in supply chain financing EBIT DKK Outlook for 2017 Cash Flow to Investments DKK 417m stable 1,485m Growth 12% // 2016H1: 372m 2017FY EBIT guidance maintained or higher Effect from acquisition of Borg Automotive and Effect from high investment level in all businesses and maintained at Group level capacity expansions in BioMar, FPC and GPV

2017H1 interim report 17.08.2017 4 Strong H1 report on the P/L side Revenue (DKKm) EBIT (DKKm, after PPA) Comments ▪ Revenue grows 25% due to solid +12.0% +25.3% increase in volume in BioMar and 30 329 7,706 effect from acquisitions 2 11 417 ▪ Borg included from 2017Q2 and GPV consolidated from 2016Q2 247 14 ▪ Organic revenue increases 17% 56 23 75 ▪ EBIT improved by 12% (6% organic) 5 2 41 5 ▪ Negative effect on EBIT from 838 Purchase Price Allocations in 2017H1 of DKK 57m (mainly in Borg) 372 6,148 ▪ Overall, satisfactory development in all businesses, both the ‘old’ ones and the newcomers 2016 Bio- FPC FIN HySp Borg GPV Other 2017 2016 Bio- FPC FIN HySp Borg GPV Other 2017 Mar Mar

2017H1 interim report 17.08.2017 5 NWC increase but solid ROIC figures Net Working Capital (DKKm) ROIC (percentage) Comments ROIC excl. goodwill ROIC incl. goodwill ▪ NWC increases mainly due to effect +18.0% from Borg Automotive 38.3 2,353 2 ▪ Generally, increase in NWC reflects 45 higher level of activity in all businesses ▪ ROIC excl. goodwill increases to 220 19.6% (2016H1: 19.1%) and incl. goodwill increases to 16.1% (2016H1: 4 19.6 15.6%) 35 18.2 15.9 ▪ All businesses except FIN currently 1,993 74 15.1 15% 17 meets Schouw & Co.’s 15% ROIC 26.0 target 8.2 17.9 16.1 14.2 13.5 7.4 BioMar FPC FIN HySp GPV Schouw 2016 Bio- FPC FIN HySp Borg GPV Other 2017 Mar Notes: No ROIC figures for Borg Automotive as a consequence of a required change in accounting principles

2017H1 interim report 17.08.2017 6 NIBD development reflects high activity 0.9 Development in NIBD DKKbn 0.1 0.3 0.6 0.5 1.1 0.6 1.2 1.1 0.02 -1.0 NIBD CF Investments Sale of NIBD CF Acquisition Investments Dividends Other NIBD 30 Jun operations in 2016H2 Kramp 31 Dec operations of Borg and in 2017H1 (Alimentsa 30 Jun 2016 2016H2 and SMB 2016 2017H1 BHE prepayment) 2017 Selected investments 1 BioMar expansion in Karmøy, Norway DKK ~350m Fibertex Personal Care in Sendayan, Malaysia DKK ~400m Fibertex Nonwovens expansions and line upgrades DKK ~125m GPV in Guadalajara, Mexico and new SMT capacity DKK ~50m Notes: 1) Some of the investments lies outside the 2016H1-2017H1 period.

2017H1 interim report 17.08.2017 7 BioMar: Strong salmon but fierce competition Q2 and H1 comments Q2 revenue (DKKm) H1 NWC (% of LTM rev.) +4.6% -6.4 ▪ Volume increases 28% H1, driven by increase in 2,273 2,230 Strong market shares and growth in salmon markets 13.8 1,901 1,900 13.2 1,837 financial ▪ EBIT increases 10% in Q2 and 30% in H1 despite 9.2 develop- 8.1 very tough competition, especially in salmon 6.7 ment ▪ CF from Operations Y/Y low due to seasonality in NWC/supply chain financing and tax prepayment 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ▪ Guidance maintained, several one-offs in 2016 Q2 EBIT (DKKm) H1 ROIC (ex goodwill %) ▪ Solid order position and strong sales concepts Solid ▪ Karmøy extension enables growth opportunities +15.9% position 122 38.3 +21.4 but fierce ▪ Strong position in European non-salmon markets 111 compe- 26.0 ▪ Long-term growth investments in LatAm shrimp, 79 78 24.4 21.8 tition 68 China, salmon in Australia, etc. 16.9 ▪ Closing of Alimentsa acquisition expected in H2 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

2017H1 interim report 17.08.2017 8 Fibertex Personal Care: Soft H1 but solid outlook Q2 and H1 comments Q2 revenue (DKKm) H1 NWC (% of LTM rev.) +5.9% +2.9 ▪ Flat spunbond volume but revenue increase 494 18.5 433 16.8 421 following increase in polypropylene prices 404 392 15.7 14.6 H1 as 12.7 ▪ Negative raw material effect on EBIT as expected expected ▪ Production on new site in Malaysia ahead of time ▪ FY EBIT outlook raised with DKK 10m following effect from new capacity in Malaysia and 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 expectation of lower raw material prices Q2 EBIT (DKKm) H1 ROIC (ex goodwill %) ▪ Strong demand for print in both Europe and Asia, Print and US establishment announced earlier this week -0.3 +9.9% speciality 54 23.4 ▪ Print volumes in 2017H1 80% higher than 2016H1 drives 45 ▪ Smooth installation of 20kt spunbond line in 37 15.8 value 15.4 34 34 15.1 12.9 Malaysia will have effect already in 2017Q4 ▪ Super-soft products (loft) can now be manufactured both in Denmark and Malaysia 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

2017H1 interim report 17.08.2017 9 Fibertex Nonwovens: Progress but uncertainty Q2 and H1 comments Q2 revenue (DKKm) H1 NWC (% of LTM rev.) -1.1 +11.0% ▪ Modest 8% increase in H1 revenue partly driven by Stable Q 31.9 30.9 30.5 29.8 374 increase in raw material prices 362 28.5 but more 328 267 ▪ Still solid demand in auto and advanced products uncer- 246 tainty on ▪ EBIT at 2016 level, difficult to compensate outlook increasing raw material prices ▪ Guidance unchanged, but uncertainty from volatile 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 raw material prices (PP, PET, viscose) Q2 EBIT (DKKm) H1 ROIC (ex goodwill %) ▪ Still negative EBIT in South Africa, however, Long-term significant improvement on 2016 level +29.1% +4.6 route to ▪ New capacity in CZ for future auto products 29 9.4 meet 27 8.2 25 ▪ Progress in US operation, solid customer base targets 7.1 7.1 ▪ Continued development of value-added products 16 3.6 10 ▪ Innovation pipeline and new product applications remain strong 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

2017H1 interim report 17.08.2017 10 HydraSpecma: Integration and streamlining Q2 and H1 comments Q2 revenue (DKKm) NWC (% of LTM revenue) ▪ Revenue at 2016 level with 2% increase in H1 -10.7 +38.5% 38.8 37.1 ▪ Stable development in most segments, however, 32.2 466 457 28.0 28.1 Solid Q1, softer demand in Wind and Marine segments softer Q2 ▪ EBIT lower than 2016 level mainly due to lower 151 147 124 activity, investment in organisation and challenging Chinese sales 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ▪ FY EBIT guidance maintained Q2 EBIT (DKKm) ROIC (excl. goodwill %) ▪ Specma acquisition has transformed Hydra to a +11.0% -0.6 Nordic leader supplying many attractive segments A trans- 29 23.8 ▪ Integration/streamlining of Specma progresses as formed 22.3 20.6 planned with continued production relocation and 22 Hydra 16.5 15.9 19 18 cost optimisations 15 ▪ Sourcing synergies continues to be harvested, cross selling projects next in line 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

2017H1 interim report 17.08.2017 11 Borg: Good start of the new business in the portfolio Q2 and H1 comments Q2 revenue (DKKm) NWC (% of LTM revenue) ▪ Borg consolidated from beginning of 2017Q2 Good 248 23.2 225 ▪ Revenue 10% above 2016 level and EBIT before financials PPA 27% higher than 2016Q2 in its first quarter in ▪ Solid demand and strong sales both in IAM Schouw (Independent After Market) and OES ▪ Revenue guidance now DKK 700m following 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 change in accounting principles, EBIT unchanged Q2 EBIT 1 (DKKm) ROIC (excl. goodwill %) ▪ Europe’s largest independent remanufacturing businesses with locations in DK, UK, BE and PL Focus on 42 ▪ Ongoing evaluation and extension of product range organic N/A due to required 33 growth ▪ Strategic thinking in new context following new change in accounting ownership, a.o. investigating capacity expansions principles 37 ▪ Organic growth in Europe remains top priority 5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Notes: 1) Adjusted for DKK 37m in Purchase Price Allocation in 2017Q2