INTERIM REPORT Q1 2019 · Interim report Q1 2020. 2. Agenda. DISCLAIMER. This presentation contains forward- looking statements. Such statements are subject to risks and uncertainties

Interim report Q1 2020

CONFERENCE CALL 28 FEBRUARY 2020

CONFERENCE CALL 29 MAY 2020

Interim report Q1 2020 2

Agenda

DISCLAIMERThis 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.

HIGHLIGHTS – Q1 2020

SEGMENT OVERVIEW

POLAND

UKRAINE

RUSSIA

OUTLOOK 2020

Q&A SESSION

SPEAKERS

HANS HENRIK PEDERSEN

CEO

KRISTIAN BROKOP

VICE CEO


Highlights – Q1 2020GOODVALLEY DELIVERED PROFITABLE GROWTH

Strong financial performanceProgress was driven by higher live pig prices, solid volume growth and good production efficiency

High production efficiencyOperational performance remained strong driven by efficiency measures in all segments

Limited impact from COVID-19No significant effect on operations or sales in Q1, but volatility increased in the market

Guidance maintained amid uncertaintyCOVID-19 affects consumer demand, trade and economic conditions – but live pig prices, efficiency and arable yields are still expected to improve


Segment overview

REVENUE, DKK MILLION, AND ADJUSTED EBITDA MARGIN, %

212 240 228 244 255

3.39.3

15.0 16.8

28.2

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

74 97138 122 108

21.6

38.0

10.7

31.041.7

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

3548 48 42 36

28.6 28.037.9

18.5 22.5

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

POLAND

Sales of branded premiumproducts accelerated in Q1as planned

+54%growth in branded product sales volume

UKRAINE

Record-high productionefficiency and significantlyimproved profitability

35.2pigs sold per sow

RUSSIA

Strong volumes and efficiencyalleviated the impact of lowerprices and currency

+11%growth in live pigs sales volume

Goodvalley generated strong results in Q1 2020 and improved revenue and earnings driven by volume growth and higher average live pig prices while further strengthening the Group’s food brand and sales of branded premium products in Poland. While the global outbreak of COVID-19 had no significant impact on operations or sales in the quarter, it reduces visibility and entails increased uncertainty.


Poland I

SALE OF PORK, THOUSAND TONNES

FOOD PRODUCT PORTFOLIO

SALE OF BRANDED PRODUCTS, TONNES

11.5 10.58.5 8.5

10.1

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

10.1thousand

tonnes39% 61%

Value addedproducts

Debonedmeat

1779 99

293

165224 258

451

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12018 2019 2020

Solid progress in sales of branded products• Growth driven by TV campaigns, online marketing and

expanded distribution• Positive lockdown effect on March sales normalised in April• Online retail sales launched as pilot project in Denmark


Revenue growth driven by live pig sales• Increased volumes and higher average price• Good operational performance in pig and food production

Strong profitability• Higher pig price and volumes• Improved feed conversion and lower feed prices• Temporary decline in pigs sold per sow

DKK million Q1 2020 Q1 2019

REVENUE 255 212

EBITDA 100 17

ADJUSTED EBITDA 72 7

ADJUSTED EBITDA MARGIN 28.2% 3.3%

PIG PRICE, DKK/KILO, AND MEAT TO FEED RATIO

PIGS SOLD PER SOW, HEADS

32.2

30.0 30.1 30.4 30.2

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

9.0712.37 12.60 13.05 13.57

5.036.79 6.96 7.34 7.88

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Poland II

SALE OF PIGS, THOUSAND HEADS

106 113 118 115 113

52 37 43 49 49

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020Finishers Weaners


Solid revenue growth• Higher pig price and volumes• Improved pig production operations

Significant improvement of profitability• Revenue growth and lower feed prices• Record-high efficiency and stable feed conversion


REVENUE 108 74

EBITDA 52 7



Ukraine



33.9 34.1 32.8 32.935.2

25

29

33

37

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

10.3312.13 13.28 13.65 12.76

6.33 7.48 8.21 8.54 8.74

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020


57 68 84 84 79

3134

32 29 26

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020Finishers Weaners


Higher volume and stable revenue• Strong 11% volume growth• Sharp decline in pig price

Profitability protected by volumes and efficiency• Low pig price and negative currency impact• Cost control measures, solid efficiency and lower feed price


REVENUE 36 35

EBITDA 19 14



Russia



33.632.5 32.5

33.6 33.6

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

11.19 12.40 12.15 10.57 10.24

6.85 7.55 7.41 6.49 6.72

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020


35 41 40 44 38

0

50

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020Finishers


GOODVALLEY MAINTAINS GUIDANCEOutlook 2020

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, potentiallyentailing 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 prevailing exchange rates for the Group’s key currencies. The assumptions are subject to significant uncertainty due to the outbreak of COVID-19.

DKK million 2019 actuals 2020 outlook

Revenue 1,526 1,600-1,750

Adjusted EBITDA 274 320-380

FINANCIAL OUTLOOKLimited visibility and increased uncertainty• Temporary decline in consumption and demand• Substitution from foodservice to retail sales• Operational risk and very limited exports

Strong Q1 and continued progress• Expected improvement of average pig price,

production efficiency and arable yields compared to 2019

Questions

10


9 JUNE 2020 Annual general meeting

21 AUGUST 2020 Interim report Q2 2020

26 NOVEMBER 2020 Interim report Q3 2020

11

FINANCIAL CALENDAR 2020

KRISTIAN BROKOP

VICE CEO

Contact information

HANS HENRIK PEDERSEN

CEO

GOODVALLEY A/SVesterbrogade 4ADK-1620 CopenhagenTel.: +45 76 52 20 01Mail: [email protected]: www.goodvalley.com


Appendix: Key figures and financial ratios

Note: Years 2013-2016 have been restated in accordance with new accounting principles

DKK million Q1 2020 Q1 2019Income statementRevenue 399 322Total income 486 380Gross profit 203 69EBITDA 176 42Adjusted EBITDA 131 37EBIT 136 7

Financial items, net (70) (8)Profit/(loss) for the period 66 (2)Adjusted net profit 75 (16)

Cash flowOperating activity 78 26Investing activity (26) (20)Free cash flow 52 6Financing activity (23) (10)

Balance sheetNon current assets 1,878 2,016Net working capital 595 494Invested capital 2,473 2,509Total assets 2,742 2,727Equity 1,398 1,275Net interest-bearing debt 1,080 1,232

DKK million Q1 2020 Q1 2019Financial ratiosGross margin 51.0% 20.4%

EBITDA margin 44.2% 13.0%

Adjusted EBITDA margin 32.5% 11.5%EBIT margin 34.1% 2.0%

Free cash flow / revenue 13.0% 2.0%

Cash conversion 59.3% 73.0%

Capex 24 22

NIBD/Adjusted EBITDA LTM 2.9 6.7

Equity ratio 51.0% 46.8%

ROIC 8.7% 2.1%FTE 2,262 2,222

Share ratiosEarnings per share, DKK 1.2 (0.0)


1Bond Obligor Group consists of: Goodvalley A/S, Finansax ApS, Goodvalley Agro S.A., Goodvalley Sp. Z o.o. and Goodvalley Ukraine LLC

DKK million Q1 2020 Q1 2019Goodvalley Bond Obligor Group

Revenue 364 288

Total income 437 335

EBITDA 159 30

Adjusted EBITDA 124 28Net interest-bearing debt 1,074 1,184

Adjusted EBITDA LTM 360 121

NIBD/Adjusted EBITDA LTM 3.0 9.5

Appendix: Goodvalley Bond Obligor Group1

Documents

INTERIM REPORT Q1 2019 · Interim report Q1 2020. 2. Agenda. DISCLAIMER. This presentation contains forward- looking statements. Such statements are subject to risks and uncertainties