Page 1

" Group management is fully focused on implementing powerful measures to address challenges in the short - term , while driving a long - term transformation at the same time . Through hard and goal - oriented work , we will build and strengthen our business " Otto Drakenberg , Interim managing director and CEO ■ Improvement program to address significant challenges July - September 2021 Net sales amounted to MSEK 2,632 ( 2,621 ) in the third quarter 2021. At constant exchange rates net sales increased by 1 percent . Operating income ( EBIT ) decreased by 74 percent to MSEK 30 ( 116 ) , corresponding to a margin of 1.1 ( 4.4 ) percent . Adjusted operating income ( adj . EBIT ) ¹ decreased by 71 percent to MSEK 43 ( 147 ) , corresponding to a margin of 1.6 ( 5.6 ) percent . Income for the period amounted to MSEK 4 ( 78 ) . Earnings per share amounted to SEK 0.04 ( 1.21 ) . Operating cash flow was MSEK 112 ( 240 ) . ■ January - September 2021 Net sales amounted to MSEK 7,666 ( 7,548 ) in the first nine months of 2021. At constant exchange rates net sales increased by 4 percent . Operating income ( EBIT ) decreased by 35 percent to MSEK 192 ( 295 ) , corresponding to a margin of 2.5 ( 3.9 ) percent . Adjusted operating income ( adj . EBIT ) ¹ ) decreased by 36 percent to MSEK 210 ( 326 ) , corresponding to a margin of 2.7 ( 4.3 ) percent . Income for the period amounted to MSEK 99 ( 187 ) . Earnings per share amounted to SEK 1.49 ( 2.84 ) . Operating cash flow was MSEK 278 ( 499 ) . ■ ■ ■ Scandi Standard Better Chicken for a Better Life ■ Significant events in the quarter Significant input price increases on many of the group's input factors , a continued challenging price situation in export markets , severe under manning in Ireland due to Covid - 19 and by production challenges in Sweden and Ireland , plus continued large losses in Ready - to - cook Denmark has contributed negatively to the quarterly results . ■ ■ Significant events after the close of the quarter The Board of Directors of Scandi Standard has decided to appoint Jonas Tunestål as new managing director and CEO . Jonas Tunestål is currently CEO of KLS Ugglarps and Executive Vice President of Danish Crown . Interim managing director and CEO Otto Drakenberg will remain with Scandi Standard until Jonas Tunestål joins the company at the latest 1 May 2022 . At the beginning of the quarter , a group - wide improvement program was initiated with the aim to return to profitability in line with previous years as soon as possible and to lay the foundation for long - term sustainable and profitable growth and returns . Bird intake to production is reduced temporarily with about 8-10 percent in Sweden and Ireland during the fourth quarter 2021 to address production challenges and facilitate the process of ensure operational delivery in the Swedish and Irish operations . In order to create further financial flexibility , the Board has resolved not to propose a second dividend during 2021 . Key metrics MSEK Net sales EBITDA Operating income ( EBIT ) EBITDA margin % EBIT margin % Non - comparable items¹ ) Adjusted EBITDA¹ ) Adjusted operating income ( Adj . EBIT ) ¹ ) Adjusted EBITDA margin¹ ) % Adjusted EBIT margin¹ ) % Income after finance net Income for the period Earnings per share , SEK Return on capital employed % Return on equity % Operating cash flow Net interest - bearing debt NIBD / Adj . EBITDA Feed efficiency ( kg feed / live weight ) Lost time injuries ( LTI ) per million hours worked 1 ) Restated non - comparable items . see note 6 and 8 . Q3 2021 2,632 126 30 Scandi Standards AB ( publ ) interim report January - September 2021 4.8 % 1.1 % -13 139 43 5.3 % 1.6 % 10 4 0.04 5.8 % 6.3 % 112 -1,891 -2.8 1.51 40.2 Q3 2020 2,621 201 116 7.7 % 4.4 % -31 232 147 8.8 % 5.6 % 101 78 1.21 8.8 % 12.2 % 240 -1,929 -2.5 1.52 36.6 A 9M 2021 0 % 7,666 474 192 -37 % -74 % -2.9ppt -3.3ppt -58 % -40 % -71 % -3.6ppt -4.Oppt -90 % -95 % -97 % -3.Oppt -6.2ppt -53 % -2 % -14 % -0 % 10 % 6.2 % 2.5 % -17 491 210 6.4 % 2.7 % 132 99 1,49 5.8 % 6.3 % 278 -1,891 -2.8 1.52 37.8 9M 2020 7,548 552 295 7.3 % 3.9 % -31 583 326 7.7 % 4.3 % 227 187 2.84 8.8 % 12.2 % 499 -1,929 -2.5 1.53 31.6 A 2 % -14 % -35 % -1.1ppt -1.4ppt -45 % -16 % -36 % -1.3ppt -1.6ppt -42 % -47 % -47 % -3.Oppt -6.2ppt -44 % -2 % -14 % -1 % 20 % R12M 10,059 621 248 6.2 % 2.5 % -45 664 293 6.6 % 2.9 % 165 120 1.82 5.4 % 5.5 % 255 -1,891 -2.8 1.52 35.6 2020 9,940 699 351 7.0 % 3.5 % -59 756 410 7.6 % 4.1 % 260 208 3.16 8.4 % 11.5 % 476 -1,933 -2.6 1.52 31.0 1