Slides
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1) Pro forma including Manor Farm Scandi Standard Q1 2025 presentation (% change vs LY in parenthesis) Net Sales and EBIT margin Net sales 26% 26%17% 21% 8% 1% Sweden (+10%) Denmark (+8%) Norway (0%) Ireland (+2%) Finland (0%) Lithuania
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MSEK Q1 2025 Q1 2024 Net sales 3,376 3,160 EBITDA 233 225 EBITDA margin % 6.9% 7.1% Non-comparable items - - Operating income (EBIT) 124 122 Operating margin (EBIT) % 3.7% 3.9% EBIT SEK/kg 1.73 1.74 Earnings per share 1.01 1.07 ROCE % 11.4% 11.1% Net cash flow (change in NIBD) -13 -138 Closing balance NIBD 1,948 1,709 Q1 2025: Solid growth and improved performance • 7% growth in net sales • Strong demand driven by substitution from red meat • Sales supported by strengthened convenience offering • Start-up of Lithuanian low-cost platform according to plan • EBIT impact of -17 MSEK in the quarter • Acquisition of farms accelerating backward integration • Strong improvement in underlying EBIT • Making continual steps towards financial targets • Preparing acquired Ready-to-eat plant for start-up • Two of Europe’s most efficient breaded poultry lines • Improved performance on key sustainability KPI’s • Dividend proposal of 2.50 SEK (2.30) per share Note: ROCE trailing twelve months
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Growth and value drivers
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Strong consumer trend in favour of chicken products Source: Rabobank • Strong poultry growth in the Nordics and I reland • 44% poultry growth from 2010-2023 • 13% poultry growth expected from 2023 to 2030 • ~1.7% annual growth • Chicken benefitting from consumers s witching over from other proteins • Scandi Standard increased harvest volume b y 4% in 2024 Source: Rabobank Poultry consumption Nordics & Ireland Consumption (2011/15/19/23) 0 200 400 600 800 1,000 1,200 k tonnes Poultry Pork Beef 677 687 714 738 773 798 779 830 828 855 964 0 200 400 600 800 1,000 k tonnes 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2030E +13% CAGR 1.7% 2011 2015 2019 2023
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89% 90% 72% 70% 60% 37% 42% 0% 20% 40% 60% 80% 100% Low end cut Average cut High end cut Discount in % % of salmon % of beef % of pork Chicken is an affordable product • Price has always been important for consumers • Chicken affordable across segments • Fillets also competitively priced vs. average- and low-end cuts for other proteins Note: Data from Q4 2023. Definitions and sources in appendix 0 100 200 300 400 500 Low end cut Average cut High end cut SEK per kg Relative pricing to consumer Chicken Pork Beef Salmon
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Increasing the value of our protein -0.11 2023 0.11 -0.14 2024 0.13 R12M 2027 1.69 1.82 1.82 >3.00 0.25 0.59 0.97 0.53 1.31 0.54 1.30 -0.16 • EBIT/kg good measurement of value creation • P ositive momentum towards 2027 target • Q1 2025 EBIT/kg 1.73 SEK/kg (1.74) • 2.05 SEK/kg when excluding Lithuania • 18% increase vs Q1 2024 • Expecting to make a material step in 2025 Ingredients RTE RTC Corp Target EBIT SEK/kg (GW)
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Leading positions in five domestic markets • Strong consumer preference for domestic produce • Each country highly consolidated • Large hurdle for new entrants • Requirement for domestic footprint • Long term relationships with poultry farmers • Increasing limitation for animal farming consents • Certain low-e nd segments less sensitive to provenance MANOR FARM IRELAND DANPO DENMARK DEN STOLTE HANE NORWAY KRONFÅGEL SWEDEN Market position 1 1 3 2 1 NAAPURIN MAALAISKANA FINLAND Note: Estimate based on retail sales per market
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Start-up of acquired low-cost RTC platform in Lithuania • 20-2 5 kt (GW) state of the art processing plant (1) • Best in class cost position • Intention to build fully integrated hub (2) • Allow control of cost, welfare and food safety • Recent acquisition of farms accelerating process (3) • Planning to build additional farm capacity from 2026 • Well positioned to service high quality products to • Segments of existing market less sensitive to provenance • Ready to eat plants and export clients • Targeting medium term EBIT/kg well above 3 SEK Notes: (1) Capacity one shift, technical capacity ~50kt (GW) (2) Original deal included 6-8kt (GW) p.a. poultry farm capacity and land suitable to build parent and poultry houses required for 50kt (GW) annual harvest (3) In February 2025, Scandi Standard agreed to acquire six additional poultry farms. Through the acquisitions, Scandi Standard will have the ability be self-sufficient in producing up to 25kt (GW) p.a. on one shift in Lithuania from 2H 2025
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9 Ready- to -cook Chickens per year: 50 million Sweden Valla Our online marketing and search optimization services were designed. Title Two Our online marketing and search optimization services were designed. Title Three Our online marketing and search optimization services were designed. Title Four Our online marketing and search optimization services were designed. Title Five Title Six Main Ready-to-cook Plants Chickens per year: 20 million Norway Jæren Chickens per year: 10 million Finland Lieto Chickens per year: 11 million Lithuania Joniškis Chickens per year: 45 million Denmark Aars Chickens per year: 50 million Ireland Shercock
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Ready-to-eat –Chicken becoming the preferred convenience choice • Strong o rganic growth last ten years • Growth has mat erialised in uneven steps • Positive momentum after loss of continental E uropean contract in 2H 2023 • Two main types of business • 3/4(1) - Breaded products (European market) • 1/4(1) - Integrated, local businesses in Sweden, Norway, and Finland • High return on capital employed • Average EBIT margin 6% last five years • Low capital employed compared to Ready-to-c ook Ready-to-eat Net Sales (MSEK) 489 902 1,247 1,531 2,042 1,911 2,112 2,949 2,873 2,601 0 500 1,000 1,500 2,000 2,500 3,000 3,500 MSEK 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5.3x 18% CAGR Note: (1) Approximate share of Ready-to-eat net sales
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Healthy market growth expected in European breaded market • Market players divided into tiers • European players • Regional players • Local players • Scandi Standard has been a large regional player • 36kt product weight in 2024 • About 5% European market share • Production platform not competitive in the top tier • Stagnant market after Covid 19 and inflation • Some European overcapacity • About 60kt market growth expected by 2029 11 (1) Source Rabobank (product weight EU + UK) 400 400 410 420 430 440 450 310 312 314 316 318 319 321 - 50 100 150 200 250 300 350 400 450 500 2023 2024 2025 2026 2027 2028 2029 Ktonnes European Frozen Breaded Market(1) Food service Retail European Frozen Breaded Market(1)
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Acquisition takes Scandi Standard breaded activities to the top tier • Two of Europe’s largest and most efficient breaded p roduct lines (Factory C) • 48 kt annual capacity • One o f few with advanced f ormed product(1) capability • Total investment 28 MEUR • Acquisition price + required investments(2) • Replacing planned 30 MEUR investment in Denmark(1) • Tailored to meet criteria of the largest clients • Two-s ite operation satisfy contingency criteria • Operations planned to start Q4 2025 • Start-u p costs and effect of low utilization at outset 12 (1) Part of whole muscles applied for breaded products such as burgers (2) Factory B suffered fire December 2023, also impacting parts of Factory C (mainly intake area) (3) In its 2027 plan, Scandi Standard would expand the Farre plant by 20% spending about EUR 30 million. A large part of the spend was planned during 2025.
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Lithuania + Breaded RTE Well positioned to gain market share • Low cost an d high quality - End-to-end • Low feed, labour and slaughtering cost • Quality control of RTC value chain • Efficient logistics • State-of-t he -art breaded capability • Scalable platform • Lithuania slaughter capacity highly flexible • Land purchased for expansion of farming capacity • Oosterwolde able to take on large orders • Farre flexibility to take on “tailored” contracts • Very competitive combined offering to clients • Typically, long lead time in supplier switch-o vers 13
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14 Q1 2025: 2% increase in EBIT Ready-to-cook Ready-to-eat Other Total MSEK Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Net sales 2,600 2,441 646 594 130 125 3,376 3,160 EBIT 93 96 31 25 0 1 124 122 EBIT margin, % 3.6% 3.9% 4.7% 4.2% 0.1% 0.7% 3.7% 3.9% Non-comparable items1) 0 0 0 0 0 0 0 0 Adj. EBIT1) 93 96 31 25 0 1 124 122 Adj. EBIT1) margin, % 3.6% 3.9% 4.7% 4.2% 0.1% 0.7% 3.7% 3.9% 1) Adjusted for non-c omparable items. see note 5 in quarterly report. Net sales Q1 2025 (% change vs LY in parenthesis) Change in Adj. EBIT per segment 26% 26%17% 21% 8% 1% Sweden (+10%) Denmark (+8%) Norway (0%) Ireland (+2%) Finland (0%) Lithuania
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15 Ready-to-cook – Strong growth and improved performance • 6% increase in net sales • 2% increase in chicken processed (GW) • Positive mix and price effects • Adj. EBIT 93 MSEK (96) • Including Lithuanian start up costs of 17 MSEK • Low quarterly injury (LTI) rate • Focused program to structurally reduce injuries • Stable animal welfare indicator • Seasonally high number due to winter humidity 1) Restated non-comparable items, see note 5 in quarterly report 2) Grill weight, tonnes. Grill weight is the weight of gutted bird. Previously reported figures showed live weight, tonnes. Historical data converted by a factor of 0.72. 3) Injuries lead to absence at least the next day, per million hours worked 4) Foot score; leading industry indicator for animal welfare 5) Includes recall from customers or consumers, presence of foreign objects in the product, allergen or incorrect content or sell by dates MSEK Q1 2025 Q1 2024 R12M 2024 Net sales 2,600 2,441 10,081 9,923 EBIT 93 96 365 368 EBIT margin, % 3.6% 3.9% 3.6% 3.7% Non-comparable items1) - - - - Adj. EBIT1) 93 96 365 368 Adj. EBIT1) margin, % 3.6% 3.9% 3.6% 3.7% Chicken processed (GW)2) 71,775 70,133 281,510 279,868 LTI per million hours worked3) 13.3 23.0 25.3 27.9 Animal welfare indicator4) 8.5 8.4 6.6 6.5 Use of antibiotics (% of flocks treated) 7.6 8.8 4.4 4.4 Critical complaints5) 0 0 0 0
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Stable feed price • Feed ~1/3 of cost base • Changes largely transferred to customers • End consumers benefitting from lower cost • Short production cycle in comparison to other p rotein enabling a more agile supply chain Feed cost development (Index vs avg 2020) FC Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Feed price 143 165 161 159 156 146 139 136 134 134 130 129 130 130 Wheat Soy Maize 54% (40-63%) 22% (11-27%) 10% (0-10%) Grain by-products 3% (0-4%) Rape seed 3% Minerals, vitamins, premix, enzymes 3% Amino acid 1% Fats 4% (4-4%) Feed composition and inclusion ranges
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Realised export prices at average 2024 level • Down 3% compared to Q4 2024 • Increased prices more than off-s et by FX and mix • Expectation of increased prices reflecting h igher bird prices in Eastern Europe • Efforts to improve our market performance • Strategic client relationships • Improved sales and operations planning • Increased flexibility between export and Ready- to-e at • Reduced exposure to spot markets Export price achievement - Development 104 104 98 99 103 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 100 98 96 100 100 Note: price development based on Q1 2025 volume mix, ix vs Q4 2022 2022 2023 2024 2025
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18 (% change vs LY in parenthesis) Net sales per country Net sales per channel Ready-to-cook – Growth driven by strong retail demand Retail Net sales development, (MSEK) Foodservice Net sales development, (MSEK) 1,562 1,668 1,922 1,915 Q1 1,759 1,887 1,915 1,394 1,671 1,712 1,804 Q2 Q3 Q4 1,5151,575 1,581 1,818 1,861 1,964 +5.7% +7.0% +8.1% +9.0% 139 208 215 258 Q1 199 210 246 139 192 214 228 Q2 Q3 Q4 154 116 163 203 221 213 +16.5% +22.9% +16.9% +18.0% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 % CAGR 26% 20% 17% 26% 9% Sweden (+12%) Denmark (+5%) Norway (+1%) Ireland (+2%) Finland (-3%) 2% Lithuania 76% 8% 8% 8% Retail (+6%) Export (+34%) Foodservice (-4%) Industry/Other (+4%)
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19 Ready-to-eat – Strong growth and improved EBIT • Net sales up 9% • Driven by strong retail demand • EBIT 31 M SEK (25) • Negative impact from Stokke expansion start-up • Flat QSR market • Expecting improved momentum later in 2025 • Good progress in preparations of O osterwolde plant • Positive market feedback • Preparing and investing for Q4 start-up • Reduced number of injuries 1) Restated non-comparable items. see note 5 in quarterly report 2) Injuries lead to absence at least the next day, per million hours worked 3) Includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content or sell by dates MSEK Q1 2025 Q1 2024 R12M 2024 Net sales 646 594 2,653 2,601 EBIT 31 25 153 148 EBIT margin, % 4.7% 4.2% 5.8% 5.7% Non-comparable items1) - - - - Adj. EBIT1) 31 25 153 148 Adj. EBIT margin, %1) 4.7% 4.2% 5.8% 5.7% LTI per million hours worked2) 18.1 31.1 18.3 21.2 Critical complaints3) 2 0 2 0
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20 Ready-to-eat – Strong retail growth, food service still slow Retail Net sales development, MSEK Foodservice Net sales development, MSEK 340 502 474 312 Q1 537 419 297 348 501 299 284 Q2 Q3 Q4 380 265 421 470 263 257 -0.8% -2.8% -7.9% -6.5% (% change vs LY in parenthesis) Net sales per country Net sales per channel 2021 2022 2023 2024 2025 123 146 165 193 Q1 149 166 185 123 139 156 172 Q2 Q3 Q4 125114 135 149 172 195+14.3% +16.2% +14.0% +11.8% 2021 2022 2023 2024 2025 % CAGR 26% 53% 18% Sweden (+1%) Denmark (+15%) Norway (-2%) 4% Finland (+55%) 30% 21% 40% 9% Retail (+14%) Export (+25%) Foodservice (-2%) Industry/Other (+14%)
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CFO Comments
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Q1 2025 P&L Increased Sales and EBIT • Net sales above LY driven by increased volume, and f avourable product mix as well as price • EBIT 124 MSEK (122) • Impacted by Lithuania, -17 M SEK • Increased finance costs • Expiration of favourable I R swaps • Higher NIBD due to acquisitions • Tax in line with last year • Feed efficiency at a stable, strong level • Significant reduction in injuries MSEK Q1 2025 Q1 2024 Δ R12M 2024 Net sales 3,376 3,160 7% 13,239 13,024 EBITDA 233 225 4% 939 931 Depreciation -100 -94 7% -395 -388 Amortization -9 -10 -8% -36 -37 Operating income EBIT 124 122 2% 511 509 Finance net -40 -34 16% -160 -155 Income after finance net 84 88 -4% 351 354 Income tax expenses -18 -18 0% -80 -80 Income for the period 66 70 -5% 271 275 Earnings per share, SEK 1.01 1.07 -5% 4.15 4.20 Feed efficiency (kg feed/live weight) 1.50 1.50 0% 1.49 1.49 Lost time injuries per million hours worked (LTI) 13.9 24.1 -42% 24.3 27.0
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Note: ROCE and ROE trailing twelve months 2,448 2,538 11.6 % 10.7 % 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 0 1,000 2,000 3,000 Average Equity, MSEK ROE% Q1 2024 Q1 2025 4,418 4,502 11.1% 11.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0 2,000 4,000 6,000 Average Capital Employed, MSEK ROCE% Q1 2024 Q1 2025 Capital Employed and ROCE Equity and ROE Returns • Improving ROCE i n spite of effect of acquisition ramp-up • ROCE 11.4% (11.1%) • Return on equity 10.7% (11.6%) • Still solid equity ratio • 34.7% (36.9%)
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Strong cash flow 1) Other items mainly consist of effects from changes in foreign exchange rates and net change of leasing assets MSEK Q1 2025 Q1 2024 2024 2023 Opening balance NIBD 1,935 1,571 1,571 1,983 EBITDA 233 225 931 880 Change in working capital 14 -189 -62 228 Net capital expenditure -221 -85 -367 -338 Other operating items -18 -20 -59 -99 Operating cash flow 8 -70 443 671 Paid finance items, net -33 -33 -157 -132 Paid tax -30 5 -79 -54 Dividend - - -150 -75 Business combinations - - -453 126 Other items1) 42 -29 33 -124 Other cash flow -21 -68 -807 -259 Change in NIBD -13 -138 -364 412 Closing balance NIBD 1,948 1,709 1,935 1,571 Capex/Depreciations 269% 119% 120% 118% Paid financial expenses/NIBD -1.7% -1.9% -8.1% -8.4% Dividend per share - - 2.30 1.15 NIBD/Adj. EBITDA 2.1 1.9 2.1 1.8 • Large acquisitions expenses absorbed by • High EBITDA • Reduced working capital, mainly driven by lower t rade receivables • Paid tax at a more normal level • Tax refund in Q1 2024 • Favorable FX effects mainly drive other items • Currency impact on interest bearing debt • Net cash flow -13 M SEK • Reported leverage well below internal aim of < 2.5x
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Working capital remain exceptionally low • 5% decrease in inventory • Receivables f avorably impacted by timing • Slight decrease in p ayables • Increased Ot her working capital items • Mainly timing of holiday pay provisions • Target level of Working capital/Sales (R12M) adj usted for financing is 6% • Q1 2025 adjusted for financing elements below target a t 4.7% -37 -59 -2.0 % -1.5 % -1.0 % -0.5 % 0.0 % 0.5 % 1.0 % 1.5 % 2.0 % -200 -150 -100 -50 0 50 100 150 200 Q3 2022 23 0.2 % Q4 2022 118 0.9 % Q1 2023 6 0.0 % Q2 2023 -100 -0.8 % Q3 2023 -197 -1.6 % Q4 2023 -2 0.0 % -0.4 % Q1 2024 -72 -0.6 % Q1 2022 Q2 2024 -108 -0.8 % -0.5 % Q3 2024 -135 -1.0 % Q2 2022 -1.5 % -160 -1.2 % -180 Q1 2025 Q4 2024 Working capital (MSEK) Working capital / Sales Working Capital MSEK March 31, 2025 March 31, 2024 December 31, 2024 Inventory 910 946 959 Trade receivables 1,125 1,225 1,043 Trade payables -1,556 -1,584 -1,532 Other working capital, net -639 -589 -604 Working capital -160 -2 -135 Working capital/sales -1.21% -0.01% -1.04%
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Cash flow guidance • Large 2025 investments • Acquisitions • Oosterwolde ( paid in Q1) • Lithuanian farms (MEUR 18 to be paid in Q2) • Capital investments 550 MSEK • Preparation of O osterwolde for Q4 production start • General de-b ottlenecking and efficiency investments • Roll-o ut of BPE system • Expectations of increased working capital • Current working capital exceptionally low • Ramp-u p of Lithuania and Oosterwolde • Blended effective tax rate of about ~20% • Dividend 163 MSEK (2.50 /share) in two instalments • Q2 and Q3 Capital expenditure (MSEK) Capex/Depreciation Dividend (SEK) Dividend Yield% 206 265 199 371 419 355 306 311 338 367 550 0.0 0.5 1.0 1.5 2.0 2.5 0 200 400 600 800 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E Capex/Depreciation Capital expenditure (MSEK) 1.3 1.8 1.4 1.8 2.0 1.3 1.2 2.3 2.5 0 1 2 3 4 0.0 0.5 1.0 1.5 2.0 2.5 2015 2016 2017 2018 2019 0.0 2020 2021 0.0 2022 2023 2024 2025FC Dividend yield Dividend Capital expenditure and Depreciation Dividend and Yield
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Ensuring welfare - Cornerstone in licence to operate Responsible animal welfare • Rearing mortality • Antibiotics use, foot pad scores and transport mort ality • Primary data from growers Safety for consumer and employees • Salmonella and campylobacter • Residual bone fragments and critical complaints • Employee injuries, satisfaction & motivation • Inclusion culture Nutritious • Fat level and profile • Salt level and clean label policy compliance Welfare Safe Responsible Nutritious H eal t h and w el l be of ou r cons u m er s
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Sustainability scorecard N.b. The reported carbon emissions figures have been adjusted through 2021 in accordance with Scandi Standard's recalculation policy due to a change in magnitude exceeding five per cent. LTI per million hours worked Animal welfare indicator (Foot Pad Score)Use of antibiotics (% of flocks treated) CO2 emissions (g CO2e/kg product) Critical complaintsFeed efficiency (kg feed/live weight) 28.4 27.8 24.8 20.3 28.8 22.5 23.3 24.1 34.0 24.7 25.1 13.9 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 11.3 11.0 9.9 9.3 10.6 6.6 6.2 8.8 1.6 2.5 4.6 7.6 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 24 11.6 12.5 11.4 14.9 9.9 9.9 4.9 4.3 5.0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 8.4 8.4 8.5 72.0 72.8 81.5 88.2 78.3 73.3 80.7 76.1 73.2 74.8 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 68.7 69.4 1.50 1.50 1.51 1.50 1.50 1.50 1.49 1.50 1.48 1.49 1.49 1.50 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 1.0 2.0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Target
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Ramp up our efficiency – end-to-end Build a winning culture together Strategic pillars to achieve our goals
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Our 2027 targets We want to be the leading provider of high- quality and sustainable chicken, setting the industry standard for excellence in animal welfare, environmental responsibility, and customer satisfaction. With this comes higher earnings – and our right to grow. Objectives and investment priorities >15 ROCE % >6 % EBIT <1% Antibiotics use 42%(1) CO2e emissions LTIFR <15 Employee satisfaction >75 5-7% Organic Net sales growth p.a. (1) Amended from 50% following adoption of FLAG ( Forest Land and Agriculture) guidance from Science Based Target Initiative
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31 Structured approach receiving recognition Value chain focus (Scope 1-3) farm to fork with focus on data quality, target setting and reduction initiatives. Sustainability focus areas Improving governance structure and processes related to e.g., management of impacts, risks and opportunities. This is done through established frameworks such as TCFD Increased transparency transparent communication to all stakeholders, e.g., investors, customers, consumers. Examples include carbon footprint calculations, climate labelling, investor ratings ESG ratings Focused work with transparency has led to significant improvements in investor ESG ratings. Rating framework Latest rating A AA C 37/374 in packaged foods 18/64
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Clear roadmap to > 3 SEK EBIT/kg Climb the value ladder • Balance supply to domestic fillet demand • Value creation through increased consumer c onvenience • Differentiation and branding opportunities • Utilise further part of potential in Ingredients Large efficiency potential in the value chain • Optimised utilisation of advantageous sustainability me trics • Organizational performance, scalable platform s tructure and collaboration • Production standardisation and automation • Supply chain standardisation and digitalisation • Increased collaboration in the value chain 1.27 0.78 1.14 1.69 1.82 0.0 0.5 1.0 1.5 2.0 2.5 3.0 SEK/kg 2020 2021 2022 2023 2024 Target 2027 >3.00 SEK per kg “Grill weight”
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Summary and outlook • Strong quarterly growth and performance • Moving steadily towards financial targets • Expecting another significant step in 2025 • Well positioned in turbulent macro environment • Focus on start-u p of acquired entities • Dividend proposal of SEK 2.50 (2.30) per share
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Q&A 34
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Appendix
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Segment information by quarter * Includes income from associated companies Ready-to-cook, MSEK 2019 2 020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 7,467 7, 619 7,611 8,674 2,373 2,495 2,431 2,278 9,577 2,441 2,546 2,536 2,399 9,923 2,600 Adjusted EBITDA 621 622 424 406 115 139 182 161 597 180 181 193 153 707 181 Depreciations -210 - 240 -266 -310 -71 -79 -75 -75 -299 -75 -74 -73 -84 -305 -79 Adjusted EBITA 411 382 158 97 44 60 107 86 297 105 107 120 69 402 102 Amortizations -50 -5 0 -50 -52 -13 -12 -10 -10 -45 -10 -9 -9 -9 -37 -9 Adjusted EBIT 362 333 110 47 31 48 97 77 253 96 98 111 63 368 93 Non-comparable items -7 -7 - - - - 8 - 8 - - - - - - EBIT* 354 326 110 47 31 48 105 77 261 96 98 111 63 368 93 Adjusted EBITDA margin, % 8.3% 8. 2% 5.6% 4.7% 4.8% 5.6% 7.5% 7.1% 6.2% 7.4% 7.1% 7.6% 6.4% 7.1% 7.0% Adjusted EBITA margin, % 5.5% 5. 0% 2.1% 1.1% 1.9% 2.4% 4.4% 3.8% 3.1% 4.3% 4.2% 4.7% 2.9% 4.1% 3.9% Adjusted EBIT margin, % 4.8% 4. 4% 1.4% 0.5% 1.3% 1.9% 4.0% 3.4% 2.6% 3.9% 3.8% 4.4% 2.6% 3.7% 3.6% EBIT margin, % 4.7% 4. 3% 1.4% 0.5% 1.3% 1.9% 4.3% 3.4% 2.7% 3.9% 3.8% 4.4% 2.6% 3.7% 3.6% Ready-to-eat, MSEK 2019 2 020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 2,042 1, 911 2,112 2,949 765 774 734 600 2,873 594 686 677 644 2,601 646 Adjusted EBITDA 139 141 187 260 58 74 47 36 215 39 52 59 56 206 46 Depreciations -52 -4 7 -49 -51 -14 -15 -15 -14 -57 -14 -14 -15 -16 -59 -16 Adjusted EBITA 87 94 138 209 45 59 32 22 158 25 38 44 40 148 31 Amortizations -2 - - - - - - - - - - - - - -0 Adjusted EBIT 85 95 138 209 45 59 32 22 158 25 38 44 40 148 31 Non-comparable items - - - - - - - - - - - - - - - EBIT* 85 95 138 209 45 59 32 22 158 25 38 44 40 148 31 Adjusted EBITDA margin, % 6.8% 7. 4% 8.8% 8.8% 7.6% 9.5% 6.4% 6.0% 7.5% 6.6% 7.6% 8.7% 8.7% 7.9% 7.2% Adjusted EBITA margin, % 4.2% 4. 9% 6.5% 7.1% 5.9% 7.7% 4.3% 3.7% 5.5% 4.2% 5.6% 6.6% 6.2% 5.7% 4.7% Adjusted EBIT margin, % 4.2% 5. 0% 6.6% 7.1% 5.9% 7.7% 4.3% 3.7% 5.5% 4.2% 5.6% 6.6% 6.2% 5.7% 4.7% EBIT margin, % 4.2% 5. 0% 6.6% 7.1% 5.9% 7.7% 4.3% 3.7% 5.5% 4.2% 5.6% 6.6% 6.2% 5.7% 4.7%
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Other, MSEK 2019 2020 2021 2 022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 381 411 377 496 146 142 143 134 564 125 118 129 127 499 130 Adjusted EBITDA 18 11 15 79 24 25 12 10 71 8 6 11 10 36 13 Depreciations -7 -4 -3 -3 -1 -1 -2 0 -3 -1 -1 -1 -1 -4 -1 Adjusted EBITA 11 7 13 76 24 24 11 10 68 7 5 10 9 32 12 Amortizations - - - - - - - - - - 0 0 0 1 - Adjusted EBIT 11 7 13 76 24 24 11 10 68 7 5 10 9 32 12 Non-comparable items - - - - - - - - - - - - - - - EBIT* 11 7 13 76 24 24 11 10 68 7 5 10 9 32 12 Adjusted EBITDA margin, % 4.6% 2.6% 4.0% 15. 9% 16.7% 17.8% 8.6% 7.3% 12.7% 6.4% 5.2% 8.7% 8.2% 7.2% 9.9% Adjusted EBITA margin, % 2.9% 1.7% 3.3% 15. 3% 16.2% 17.1% 7.4% 7.3% 12.1% 5.7% 4.4% 7.9% 7.3% 6.3% 9.2% Adjusted EBIT margin, % 2.9% 1.7% 3.4% 15. 3% 16.2% 17.1% 7.5% 7.3% 12.1% 5.8% 4.5% 8.0% 7.4% 6.4% 9.2% EBIT margin, % 2.9% 1.7% -0.1% 15. 3% 16.2% 17.1% 7.5% 7.3% 12.1% 5.8% 4.5% 8.0% 7.4% 6.4% 9.2% Group Cost, MSEK 2019 2020 2021 2 022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales - - - - - - - - - - - - - - - Adjusted EBITDA -24 -18 -37 -2 3 -2 -8 -2 -0 -12 -2 -9 -7 0 -19 -7 Depreciations -2 -8 -11 -1 8 -5 -3 -5 -4 -16 -4 -5 -5 -5 -20 -5 Adjusted EBITA -26 -26 -48 -4 1 -6 -11 -7 -4 -28 -6 -15 -12 -5 -38 -12 Amortizations - - - - - - -2 - -2 - - - - - - Adjusted EBIT -26 -26 -48 -4 1 -6 -11 -9 -4 -31 -6 -15 -12 -5 -38 -12 Non-comparable items - -52 9 - - - - - - - - - - - - EBIT* -26 -78 -39 -4 1 -6 -11 -9 -4 -31 -6 -15 -12 -5 -38 -12 Adjusted EBITDA margin, % - - - - - - - - - - - - - - - Adjusted EBITA margin, % - - - - - - - - - - - - - - - Adjusted EBIT margin, % - - - - - - - - - - - - - - - EBIT margin, % - - - - - - - - - - - - - - - TOTAL, MSEK 2019 2020 2021 2 022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 9,891 9,940 10,101 12, 119 3,284 3,411 3,308 3,011 13,014 3,160 3,350 3,343 3,170 13,024 3,376 Adjusted EBITDA 753 756 589 722 196 230 240 206 871 225 231 256 219 931 233 Depreciations -271 -299 -328 - 382 -90 -97 -97 -93 -376 -94 -95 -94 -106 -388 -100 Adjusted EBITA 482 457 261 340 106 133 143 114 495 131 136 162 113 543 133 Amortizations -52 -50 -50 -5 2 -13 -12 -12 -10 -47 -10 -9 -9 -9 -37 -9 Adjusted EBIT 431 410 213 290 93 121 130 105 449 122 127 153 107 509 124 Non-comparable items -7 -59 9 - - - 8 - 8 - - - - - - EBIT* 424 351 222 290 93 121 139 105 457 122 127 153 107 509 124 Adjusted EBITDA margin, % 7.6% 7.6% 5.8% 6. 0% 6.0% 6.7% 7.2% 6.9% 6.7% 7.1% 6.9% 7.7% 6.9% 7.1% 6.9% Adjusted EBITA margin, % 4.9% 4.6% 2.6% 2. 8% 3.2% 3.9% 4.3% 3.8% 3.8% 4.2% 4.1% 4.9% 3.6% 4.2% 3.9% Adjusted EBIT margin, % 4.4% 4.1% 2.1% 2. 4% 2.8% 3.5% 3.9% 3.5% 3.4% 3.9% 3.8% 4.6% 3.4% 3.9% 3.7% EBIT margin, % 4.3% 3.5% 2.2% 2. 4% 2.8% 3.5% 4.2% 3.5% 3.5% 3.9% 3.8% 4.6% 3.4% 3.9% 3.7% * Includes income from associated companies Live Weight Tonnes 362,996 382,257 393,369 355, 072 90,420 93,031 96,296 N/A N/A N/A N/A N/A N/A N/A N/A Grill weight Tonnes** 261,357 275,225 283,226 255, 652 65,103 66,982 69,333 68,361 269,780 70,133 69,209 71,468 69,057 279,868 71,775 EBIT / Kg Grill weight 1.62 1.27 0.78 1. 14 1.42 1.80 2.00 1.54 1.69 1.74 1.83 2.15 1.55 1.82 1.73 ** Historic data converted using ratio of 0.72
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Ready-to-cook – Historic development • Historic track record of strong growth and stable m argins • Period of significant margin contraction driven b y; • Covid-1 9 disruptions • Unsuccessful differentiation strategy in Denmark • Unprecedented cost inflation • Forceful actions secured successful turnaround • Clear roadmap to significant EBIT/kg increase 261 275 283 256 270 280 282 0 50 100 150 200 250 300 2019 2020 2021 2022 2023 2024 R12M Chicken processed (ktonnes GW) 28.6 27… 26.9 33.9 35.5 35.5 35.8 1.35 1.18 0.39 0.18 0.97 1.31 1.30 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 0 5 10 15 20 25 30 35 40 2019 2020 2021 2022 2023 2024 R12M Net sales and EBIT/kg (GW) Net sales/kg EBIT/kg
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EBIT: Ready-to-cook • EBIT Q1 2024 – Q 1 2025 (MSEK) Note: Majority of start up costs of 17 MSEK in Lithuania booked in COGS
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EBIT: Ready-to-eat • EBIT Q 1 2024 – Q1 2025 (MSEK)
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Continued focus on inventory management • Inventory de crease with 49 MSEK vs Q4 • Driven by volume and FX • Continued Focus area • Use flexibility in bird intake to balance s upply/demand • Optimise s ales and operations planning • Active use of export channel to maintain d omestic pricing 888 855 803 885 1,040 1,086 994 893 936 946 875 904 959 910 18,668 17,631 18,516 16,616 16,578 16,683 15,850 16,659 0 5,000 10,000 15,000 20,000 0 300 600 900 1,200 1,500 1,800 Q4 2021 15,312 Q1 2022 14,680 Q2 2022 15,971 Q3 2022 Q4 2022 Q1 2023 16,625 Q2 2023 Q3 2023 Q4 2023 Q1 2024 15,156 Q2 2024 Q3 2024 Q4 2024 Q1 2025 15,562 Inventory Value (MSEK) & Finished products volume (tonne) Total inventory MSEK Finished products volume tonne MSEK Ton
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Sustainability-linked financing • Highly competent bank group • 5-y ear tenor to Q3 2029 • Amount and flexibility to facilitate organic and strategic g rowth • Amount ~3.2bn SEK • Accordion option of up to 1.5bn SEK • Main covenants • NIBD/EBITDA < 4.0x (1) • Interest cover > 3.5x • Strengthened link to ambitious sustainability targets 42 Note: (1) Flexibility for temporary upward adjustment in connection with acquisitions, stepdown to 3.0x from fourth anniversary
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HonkajokiStokke Main Processing Plants Ready-to-eat 43 Farre Oosterwolde Stokke Honkajoki
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2030 Sustainability Goals – the foundation for a future-proof company Integrated sustainability is a cornerstone of Scandi Standard’s strategy • Annual targets linked to incentive programs • Comprehensive and transparent s ustainability reporting • Extended reporting to rating agencies • Sustainability-l inked loans 2030 Sustainability Goals • Addressing key, material topics • Breakdown on a country level with local t argets and action plans • Integrated into daily business Goal Key Performance Indicators Target 2030 Providing local, healthy, safe and affordable protein • Critical complaints and recalls • Quality & Food Safety Survey • Clean label policy compliance • Salt reduction • 0 • Response rate >90%, scoring >75% • 100% • Local targets Preserving and developing our animal welfare practices • Antibiotics • Foot pad score • Transport mortality • Rearing mortality • Growers to provide primary data on animal welfare • <1% • <5 • <0.13% • <3.5% • 100% Producing chicken with a lower climate impact – from farm to fork • Reduce absolute Scope 1 & 2 emissions • Reduce absolute Scope 3 emissions • Soy reduction • Growers to provide primary data on environment • -42% (Energy & industry) -30.3% (FLAG) • -42% (Energy & industry) -30.3% (FLAG) • -50% • 100% Using less plastic in a better way when designing our packaging • Recyclable packaging • Packaging from recycled or non-fossil • Plastics volume reduction • 100% • 50% • 20% Maximizing use of resources and minimizing waste • Recycling • Food loss and waste in production • Water • 40% • <1% • Local targets Keeping our employees engaged, safe, and healthy • Satisfaction & Motivation • Inclusive Culture • Lost Time Injury Frequency Rate • >75 • >90 • <15
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Useful links and conversions Commodity prices • Wheat C BOT • Soy C BOT • Maize C BOT • Rape seed ZM P Ross 308 chicken conversions • Live Weight to GW 0.72 • Live Weight to edible meat ~0.4
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Chicken feed composition and substitutes Standard feed % Low-range High-range Main substitutes Main origin Wheat 54% 40% 63% Maize, oats Local, EU Soy 22% 11% 27% Peas, beans, high protein vegetable products South America Maize 10% 0% 10% Wheat, oats EU Fats 4% 4% 4% N.a. Local, EU Grain bi-products 3% 0% 4% Peas, beans, high protein vegetable products Local, EU Rape seed 3% 3% 3% Peas, beans, high protein vegetable products Local Minerals/vitamins /premix/enzymes 3% 3% 3% N.a. EU Amino acids 1% 1% 1% Partly high protein vegetable products EU, Asia Total 100%
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Price segments Meat High end cut Average cut Low end cut Chicken Breast fillet Drumstick Chicken legs & wings Thigh fillet Minced (chicken) Pork Pork tenderloin Pork spare ribs Pork chops Pork chops Minced (pork) Beef Filet mignon Roast Beef Stew pieces Entrecote Minced (Beef)
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This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Forward looking statements