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Chr . Hansen Holding A / S 1st half 20/21 interim report Q2 2020/21 in brief April 15 , 2021 - announcement no . 6 CHR HANSEN Improving food & health Continued strong organic growth momentum leads to upwards narrowing of full - year organic growth guidance • • • • • Q2 2020/21 organic sales growth was 10 % , equally split between volume / mix and price , and driven by Health & Nutrition which delivered 14 % growth while Food Cultures & Enzymes delivered 8 % growth Underlying EBIT margin b.s.i. " ) of 30.9 % , incl . > 1 % -point negative currency impact , compared to 32.2 % in Q2 2019/20 . Reported EBIT margin b.s.i. ( incl . all acquisition impacts ) was 27.0 % Integration of commercial activities in UAS / HSO is completed and integration of manufacturing is progressing HMO capacity expansion in Germany on track , while delays in product registrations and regulatory approvals remain a constraint on market development ; the market opportunity long - term is unchanged Full - year outlook for organic growth adjusted to 6-8 % ( previously 5-8 % ) , free cash flow narrowed upwards to EUR 140-160 mio , EBIT margin guidance unchanged , and impacts from acquisitions also unchanged from Q1 Q2 Q2 EUR million 2020/21 2019/20 Growth YTD 2020/21 YTD 2019/20 Growth Revenue 260.0 239.6 8.5 % 503.5 459.6 9.6 % EBITDA before special items 93.1 93.8 ( 0.7 % ) 180.9 173.9 4.0 % EBIT before special items 70.1 77.1 ( 9.1 % ) 131.5 140.9 ( 6.7 % ) Profit from continuing operations 46.1 54.8 ( 15.9 % ) 82.2 100.4 ( 18.1 % ) Free cash flow before acquisitions and special items 41.8 41.6 0.5 % 34.9 49.1 ( 28.9 % ) Organic growth 10 % 6 % 10 % 4 % Gross margin 56.7 % 59.1 % 56.3 % 59.6 % EBITDA margin before special items 35.8 % 39.1 % 35.9 % 37.8 % EBIT margin before special items 27.0 % 32.2 % 26.1 % 30.7 % ROIC excl . goodwill 23.1 % 34.4 % 22.1 % 32.1 % CEO Mauricio Graber says : " In our second quarter we delivered strong organic growth on a more demanding comparable from last year , with continued good momentum in both business areas . Our business in Asia - Pacific delivered 10 % organic growth fueled by Health & Nutrition , providing reassurance that we can grow the region strongly even as the Chinese yogurt market is still in decline . Customer engagement , both in China and globally , remains high despite the current difficulties of in person interactions . Through the acquisitions we have done , we are building a more balanced business globally between Food Cultures & Enzymes and Health & Nutrition . We've continued the integration of the acquired businesses and have recently completed a major milestone in the divestment of Natural Colors , and we are executing our strategy of becoming a focused bioscience company based on a unique microbial and fermentation technology platform . Following the divestment of Natural Colors , we have initiated the process for paying out an extraordinary dividend of around EUR 116 million , and payment of the dividend is expected to be effected during the month of May . In Q2 we progressed on our innovation agenda with many new patents , trademarks and registrations , and in Q3 we will be launching the next generation of bioprotection for fermented milks and certain cheeses . As a result of the strong organic growth in the first half of 2020/21 , and despite the uncertainties lingering from COVID - 19 , we have narrowed upwards our full - year outlook for organic growth , and we expect that Q4 to be the stronger of the two remaining quarters , primarily as Q3 of last year had a tailwind effect from customers building COVID - 19 related safety inventories . " Outlook for 2020/21 Organic revenue growth EBIT margin before special items Free cash flow before special items , acquisitions and divestments 6-8 % 27-28 % EUR 140-160 million The guidance for EBIT margin before special items and for free cash flow before acquisitions and special items assumes constant currencies from the time of this announcement and for the remainder of the financial year . " See reconciliation on page 20 . Chr . Hansen Holding A / S www.chr-hansen.com Page 1/27