Schouw & Co. Full Year 2017 Investor presentation MARCH 2018 - PowerPoint PPT Presentation

Schouw & Co. Full Year 2017 Investor presentation MARCH 2018 CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

2017 Annual Report 09.03.2018 2 Schouw & Co. value proposition Diversified portfolio 1 25 25 7,0 ,000 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

2017 Annual Report 09.03.2018 3 The portfolio Fish Feed Nonwovens Industrial solutions ~55% >40% ~20% ~30% ~25% <30% of 2018E sales of 2018E EBITDA of 2018E sales of 2018E EBITDA of 2018E sales of 2018E EBITDA

2017 Annual Report 09.03.2018 4 2017 financial highlights Revenue Profit Cash Flow Return -52.2% +5.2% -2.8pp +18.5% +6.7% +6.5% -2.6pp +10.1% 17.0 1.6 1.6 20.2 1.5 15.8 17.6 14.4 14.4 14.4 16.6 1.3 1.2 1.1 13.8 1.0 0.8 2016 2017 2016 2017 2016 2017 2016 2017 Organic revenue EBITDA CF Op. before NWC ROIC excluding GW Total revenue EBIT CF from Operations ROIC including GW

2017 Annual Report 09.03.2018 5 2017 operational highlights Acquisitions Capex Competition Innovation Borg Automotive BioMar builds BioMar faces price pressure BioMar introduces Omega3 EV 100% Capex became 6 th portfolio world’s biggest fish especially in Norway, offset rich feed based on DKK DKK leg in April 2017 ~1.1bn feed site in Karmøy ~350m by increasing market share sustainable algae products FPC sees period of over FPC patents a super-soft Alimentsa gives FPC establishes new EV 70% Capex capacity in Europe, hence and cloth-like material called strategic foothold in site in Malaysia and DKK DKK focus on NPI and innovation Fibertex Loft shrimp for BioMar ~800m adds 20kt capacity ~400m FX and raw material FIN develops filtration BHE part of Nordic GPV announces EV 100% Capex prices remain volatile and solutions based on nano EMS consolidation multi-year extension DKK DKK affect competitiveness technology in GPV ~40m of its Thailand site +200m In 2018, FIN acquires EV 100% Brazilian peer to grow DKK with auto customers ~80m

2017 Annual Report 09.03.2018 6 Across all businesses: growth but less cash generation Revenue (DKK billion) EBITDA (DKK million) Cash Flow Operations (DKK billion) 18.5% 6.5% -52% 1,598 17,032 17 26 1,568 45 480 709 588 121 59 225 89 78 1,087 6 1,472 16 22 139 10 70 72 3 14,369 763 26 2016 BioMar FPC FIN HySp Borg GPV Other 2017 2016 BioMar FPC FIN HySp Borg GPV Other 2017 2016 BioMar FPC FIN HySp Borg GPV Other 2017

2017 Annual Report 09.03.2018 7 Cash Flow generation Operational Cash Flow (DKK million) Net Working Capital (DKK million) Underlying Cash Flow from Operations increases, but significant NWC increase follows higher activity. Significant less attractive to negative impact from NWC use Supply Chain Financing in BioMar. +6.6% 2016 1,727 1,309 5 +18.3% Acquisitions 71 223 21 62 52 96 1,227 Incl. acq. 2,043 BioMar 240 FPC 63 546 FIN 29 Cash part of NWC change HySp 114 Borg 13 763 +22.6% GPV 97 Other 10 CF impact 2,589 Non-cash NWC 32 2016 EBITDA Net Tax Other 2017 NWC 2017 CF FX etc. 52 CF Op financials CF Op from 2017 2,505 before before Operations NWC NWC

2017 Annual Report 09.03.2018 8 NIBD development Net Interest-Bearing Debt (DKK million) Selected investments 1 NIBD increases mainly from acquisitions, high capex and low cash flow generation in H1 20 BioMar expansion in Karmøy, Norway DKK ~350m 744 809 1,275 Fibertex Personal Care in Sendayan, 58 Malaysia DKK ~400m 1,913 286 42 Fibertex Nonwovens expansions and line 756 upgrades DKK ~125m GPV in Guadalajara, Mexico and new SMT capacity DKK ~50m 1,115 -1,028 NIBD Acquisitions Dividends Investments CF CF Other NIBD 31 Dec operations operations 31 Dec 2016 2017H1 2017H2 2017 Notes: 1) Some of the investments lies outside 2017

2017 Annual Report 09.03.2018 9 10 years of development Revenue (DKK bn) ROIC ex goodwill FTEs (yearly average) +10.4pp CAGR CAGR 17.0 20% 6,087 +6.3% +5.6% 18% 18% 14.4 17% 16% 15% 12.5 12.6 11.9 11.8 11.6 14% 4,108 3,743 3,334 3,166 9.8 9.5 3,287 8.4 10% 2,873 2,382 7% 2,139 2,052 4% 08 09 10 11 12 13 14 15 16 17 08 09 10 11 12 13 14 15 16 17 08 09 10 11 12 13 14 15 16 17 EBIT (DKK m) NIBD/EBITDA Market Capitalisation (end of year) -3.2 times CAGR 13,939 1,038 1,093 4.0 3.9 +27.4% 12,489 2.9 +24.1% 831 2.6 772 9,131 708 685 646 1.7 6,812 0.8 5,313 369 0.0 0.0 3,511 3,188 190 2,375 2,173 2,000 124 -0.4 -0.7 08 09 10 11 12 13 14 15 16 17 08 09 10 11 12 13 14 15 16 17 08 09 10 11 12 13 14 15 16 17

2017 Annual Report 09.03.2018 10 Delivering on our strategic goals GROWTH PROFIT RETURN GEARING DIVIDENDS PORTFOLIO Considerable Benchmark ROIC > 15% Investment Constant or 5-7 strong growth every level (dependent on risk) grade capital increasing businesses year profitability structure dividends Revenue growth EBIT benchmark ROIC NIBD/EBITDA Dividends DKK/share Portfolio 5,6% 14,8% 6,2% 12,4% -7.2% 13 ’13 16,1% 4,6% ’13 0,0 ’13 6 3,8% ’14 1.2% ’14 16,9% ’14 0,0 ’14 8 Bio- Peer FPC Peer FIN Peer Mar ’15 6.6% ’15 18,3% ’15 -0,4 ’15 10 4,9% 15,2% 7,1% 6,1% 4,7% ’16 14.4% ’16 20,2% ’16 -0,7 12 ’16 2,0% ’17 18.5% ’17 17,6% ’17 0,8 13 ’17 HySp Peer Borg Peer GPV Peer

2017 Annual Report 09.03.2018 11 BioMar: Strong salmon but tough competition Revenue DKKm Profit DKKm EBIT EBITDA ROIC % Excl. GW Incl. GW +10.0pp CAGR +9.1% CAGR +3.4% 9,955 722 35.8% 712 30.1% 593 581 574 8,974 559 8,867 538 8,702 24.4% 8,451 22.9% 22.7% 447 434 20.1% 394 19.5% 16.6% 16.4% 14.7% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Financials 2018 outlook Segments ▪ Significant volume growth of 20% ▪ Volume growth driven by new capacity and ▪ Increase in market share in salmon full-year effect from Ecuador ▪ All divisions contribute to growth, but ▪ Price competition in Norway remains especially salmon region increases tough – no change since 2017 Q3 ▪ Increased market share in Norway will offset price pressure ▪ Very strong Q4 – better than expected ▪ Very strong profitability in EMEA ▪ Innovation and NPI to drive future growth ▪ EBIT at 2016 level which was significantly ▪ Ecuador significant contributor to EBIT affected by one-off income ▪ Growth in non-consolidated JVs ▪ Salmones Austral (23% non-core ▪ ROIC declines but remains very attractive ▪ 2018 sales expected at DKK 10-10.5bn ownership) in significant progress (2017 EBITDA DKK 380m, NIBD DKK 500m) ▪ NWC negatively affected by changed use of ▪ 2018 EBITDA increase to DKK 720-770m Supply Chain Financing ▪ Non-consolidated 50% JVs (China/Turkey) revenue DKK ~700m, EBIT DKK ~40m

2017 Annual Report 09.03.2018 12 FPC: Growth in Asia and pressure in Europe Revenue DKKm Profit DKKm EBIT EBITDA ROIC % Excl. GW Incl. GW +2.2pp CAGR +11.2% CAGR +6.7% 20.7% 19.2% 2,016 395 365 362 18.4% 17.1% 1,787 1,797 1,792 1,554 308 14.4% 15.8% 14.9% 288 13.6% 12.8% 13.5% 253 251 246 171 164 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Financials 2018 outlook Segments ▪ Strong Q4 with sales 20% above 2016Q4 ▪ Focus on value-added products (softness, ▪ Strong sales of new volume in Malaysia light material, print) ▪ 2017 growth driven by volume increase in ▪ Asian demand continues to grow double- Malaysia and expansion of print business digit ▪ Revenue expected to reach DKK 2.1bn ▪ Attractive ROIC despite huge investments ▪ EBITDA expected at DKK 350-370m with ▪ Demand for print continues to grow both in uncertainty from raw material prices and Europe, Asia and Americas FX (especially USD/MYR) ▪ Value-added focus to compensate for price pressure in Europe

2017 Annual Report 09.03.2018 13 FIN: Continuing profitable growth Revenue DKKm Profit DKKm EBIT EBITDA ROIC % Excl. GW Incl. GW +2.7pp CAGR +11.1% CAGR +23.9% 1,422 179 8.4% 7.8% 7.5%7.8%7.0%7.7%7.0% 1,301 162 1,222 153 7.1% 1,048 128 933 5.1% 4.7% 102 88 81 76 62 37 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Financials 2018 outlook Segments ▪ Continued progress in sales and EBIT, ▪ Strong market position from investments ▪ Good performance on all European sites both Q/Q and Y/Y in capacity expansion, value add and ▪ Strong sales to automotive and other high- innovation ▪ 9% increase in both 2017 sales and EBIT value segments ▪ Stable market activity expected ▪ Negative result in South Africa offsetting ▪ Higher activity in US with strong EBIT solid progress in European business ▪ Focus on new products and innovation improvement and good pipeline ▪ ROIC is lower than 15% target due to ▪ Small positive effect from Brazil acquisition ▪ Continued challenging market in South underperformance in South Africa and Africa (EBIT DKK -13m) ▪ Revenue expected to reach DKK 1.6bn and relatively large tied-up capital ▪ Foothold in Brazil following recent EBITDA at DKK 195-215m acquisition