Annual report
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Annual and Sustainability Report 2025
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6 17 21 Strong growth, positive trend in domestic markets and clear progress in Scandi Standard’s European initiatives. Managing Director and CEO Jonas Tunestål comments on the past year on page 6. Chicken is a protein category with structural growth and Scandi Standard is well positioned to leverage the demand. Read more about Scandi Standard as an investment on page 17. Scandi Standard’s sustainability work is integrated in operations and the work is guided by goals set by the company’s Board of Directors. Read more about the goals and direction on page 21. ABOUT US Scandi Standard in brief 3 Important events in 2025 4 Our vision, mission and our values 5 CEO’s statement 6 Our product segments and markets 9 Trends and driving forces 14 Attractive future outlook 17 The Scandi Standard share 18 Financial targets 20 Our sustainability goals and direction towards 2030 21 STRATEGY Strategy for profitable and sustainable growth 24 Increase the value of our protein 25 Increased efficiency and resource use 26 Better together 27 Integrated sustainability 28 Our value chain and business model 29 CORPORATE GOVERNANCE Corporate governance report 32 Board of Directors 39 Group Management 41 Auditor’s report on the corporate governance statement 42 DIRECTORS' REPORT Group overview, results and financial position 44 Risk and risk management 47 Sustainability Statement 51 FINANCIAL INFORMATION Financial statements 101 Parent Company financial statements 105 Notes 107 Auditor’s report 137 Auditor’s limited assurance report of Scandi Standard AB publ's statutory sustainability statement 141 OTHER Five-year summary 144 Segment information by quarter 145 Alternative KPIs 148 Definitions 149 Annual General Meeting 150 CONTENTS About the annual and sustainability report Pages 44–136 constitute the statutory annual and sustainability report, which has been audited. This Annual Report is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern.
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Scandi Standard in brief Scandi Standard was founded in 2013 and now provides chicken for millions of consumers every day. The company operates in Sweden, Norway, Denmark, Finland, Ireland, Lithuania and the Netherlands and is a market leader in several local markets. Scandi Standard also exports the company’s products to international markets, which contributes to the company’s global presence and growth strategy. Scandi Standard’s share is listed on Mid Cap Stockholm. By maintaining a focus on continuous improvement, efficiency and responsible business practice, Scandi Standard wants to set the standard for local chicken production with a lower climate footprint. Scandi Standard wants to continue to influence and develop tomorrow’s chicken production together with the company’s customers, employees, growers and other important stakeholders, and we look forward to sharing our progress in the following pages. Chicken consumption in the Nordic countries and Ireland, tonnes Consumption of different proteins, tonnes Source: Rabobank projections based on Eurostat, AVEC, FAO, MEG, SSB and Svensk Fågel. 14,083 Net sales, MSEK 603 Operating income, MSEK 3,670 Employees A selection of our brands: ET GODT VALG KLODE N•D YRA •DEG 0 200 400 600 800 1,000 2025E20242023202220212020 0 200 400 600 800 1,000 1,200 BeefPorkChicken 2010 2015 2020 2025E ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 3
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Important events in 2025 Scandi Standard acquired six chicken farms in Lithuania The acquisition helped make the company’s Baltic operations self-sufficient in raw material. Through a more integrated value chain, control over animal welfare, production, quality and costs is strengthened, thereby improving margins and increasing cost efficiency. The investor rating agency CDP ranks companies worldwide based on their climate work, and in 2025, Scandi Standard was one of the few Swedish companies awarded the highest rating, A. Read about more important events at www.scandistandard.com The acquisition and start-up of the Oosterwolde plant represents an important step in Scandi Standard’s European expansion. Scandi Standard future-proofs its organisation The company restructured its operations into clearer units to create a more coherent model for governance, collaboration, and standardisation across markets. In addition, the company is posi- tioning itself to respond to market changes and drive sustainable growth by focusing on its core operations and scalability. During the year, Ireland’s leading chicken producer, Manor Farm, marked its 250th anniversary The company has been part of Scandi Standard since 2017 and is a market leader, reflecting its long history and focus on quality. Acquisition and start-up of facility in the Netherlands The acquisition and start-up of the Oosterwolde plant in the Netherlands represents an important step in Scandi Standard’s European expansion. The first production line entered operation in the third quarter and the refurbishment and start-up of the remaining lines are con- tinuing. The plant boosts capacity and competitiveness in Ready-to-eat products and provides a platform to meet growing demand from customers in the European grocery trade and QSR segment. Scandi Standard’s Climate Transition Plan (CTP) During the year, Scandi Standard’s CTP moved from strategy to practical implementation and now guides the work toward the Group’s Science Based Targets for 2030. In 2025, several concrete measures were implemented in different parts of the business. This work represents a core component of our responsibility to reduce climate impact throughout the value chain. Scandi Standard strengthens in-house capacity Through investments in leadership and digitalisation, a more coherent and scalable organisation has been cre- ated that facilitates long-term efficiency and sustainable growth. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 4
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We are convinced that Scandi Standard will be able to continue to produce even better chicken thanks to the company’s vision, mission and values, and be able to help more people make the right choices that contribute to a healthier life for themselves and their families. OUR VISION Better Chicken for a Better Life We contribute to the joy of food as well as food production with a lower climate footprint, by providing healthy and innovative chicken products that are produced in a resource-efficient manner. OUR VALUES Openness Clarity and transparency enable us to share knowledge and experiences across countries and functions. It is how we learn from each other and develop as an organisation. Challenge We seek new insights, test alternative ways of working, and challenge the status quo to advance both our own development and that of the industry. Sense of Urgency We act quickly and rationally, and assume responsibility across the value chain to ensure our consumers can be confident in choosing our products. OUR MISSION “The Scandi W ay” “The Scandi Way” is our mission and sustainability promise. It describes how we work, each and every day, to develop attractive, innovative, and profitable products that strengthen our offering and concurrently promote health and wellbeing – today and in the long term. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 5
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Positioned for continued growth in an attractive market with great potential In 2025, the company reported strong growth, positive development in its domestic markets, and clear progress in Scandi Standard’s initiatives in other European markets. Expansion in Lithuania and the Netherlands has enhanced our capacity and position in the European market, along- side continued progress from improvement efforts in the company’s domestic markets. Growing demand for chicken, combined with improved operational efficiency and our ability to scale up new businesses, contributed to a strong performance during the year and moved us closer to our 2027 targets. In a market with long-term structural growth, expansion opportunities are favourable, and Scandi Standard is well positioned for continued improvements in growth and profitability. Jonas Tunestål, Managing Director and CEO, comments on the results for 2025: How do you sum up 2025? When I look back on 2025, three things really stand out: stability, decisiveness, and a growing sense of opportunity. We have continued to strengthen our position, not only by developing our existing oper- ations but also by building something new. Structural growth in the chicken market remains strong, and our position in Scandi Standard’s CEO’S STATEMENT In a market with long- term structural growth, expansion opportunities are favourable, and Scandi Standard is well positioned for continued improvements in growth and profitability. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 6
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domestic markets, together with a growing European presence, comprises a solid foundation for long-term growth. Our underlying business has continued to improve as we capture more value from the raw material, achieve greater operational stability and improve process efficiency The investments we have made in increased capacity, modernisation and technology are delivering clear results. At the same time, harmonising ways of working, strengthening leadership and improving conditions for collaboration across the Group has made decision-making more agile and professional. In summary, our current operations rest on a stronger foundation, with favourable conditions for continued growth across additional geographic markets where opportunities are attractive. Chicken has a lower carbon footprint than all other animal proteins, and has an important role to play in solving future food supply needs. 1) 1) Read about the carbon footprint of chicken on page 15. How did the various segments perform over the year? Ready-to-cook (RTC) posted a positive trend during the year. Demand was solid, and targeted investments in automated deboning and modernised processes enhanced quality and productivity in our domestic markets. Improvement programmes that have been under- way for several years are delivering results, particularly in Sweden, Denmark and Ireland, and thereby enhancing operational stability and reliability. Continued investments in our domestic markets will play a key role going forward in strengthening our local brands, which are a cornerstone of Scandi Standard’s business. The start-up in Lithuania moved faster than expected. The produc- tion plant and farms we acquired there are now in full production, delivering stable volumes and high quality. The integration of processes and animal welfare standards has proceeded as planned, and operations in Lithuania have already become an important part of our raw material supply. The Ready-to-eat (RTE) segment performed in line with our expectations. Production relocations in the Nordic countries have resulted in a more flexible long-term structure, despite some short- term impact on earnings. One key milestone during the year was the start-up of the plant in Oosterwolde, the Netherlands, where the first production line came on stream earlier than planned. Efforts to complete and optimise the remaining production lines will continue in 2026, further strength- ening our position in the European grocery trade and the foodservice segment. The by-product segment continued to perform in line with our targets. Value creation and resource efficiency per produced bird are increasing as more of the raw material is utilised and we see continued strong growth potential in this area. Which events in particular would you like to highlight from the past year? When I look back on the year, it is clear to me that many of the most significant events reflect our ability to build for the future. The start-up of our RTE facility in the Netherlands is a good example. The early deployment was not just a technical achievement – it demonstrated the strength and competence we have as an organisation when all of Scandi Standard aligns around a shared goal. It is precisely this ability to collaborate that will enable us to grow as a Group. Our progress in Lithuania is another milestone. The operations that are now up and running there strengthen our entire value chain. The combination of technology, expertise and a systematic approach to animal welfare means that we are already seeing the effects of moving towards what we want to achieve in the long term. Another takeaway from the year is the clear profitability potential in our value chain, especially as we take greater control of primary production and improve collaboration across countries and functions. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 7
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I also want to recognise the work we are doing to build a more coordinated and scalable organisation. The reorganisation completed during the year has already improved our ability to act more quickly and in a more unified way. I would also like to highlight our new business area, Scandi Chicken, which creates a strong platform for unlocking the significant profitability potential in primary production through improved control and efficiency. Our investments in leadership and digitalisation have also played an important role. The Scandi Leadership Programme has given us a common framework for leadership and business development, while the HR platform has improved transparency and structure in our goal and development processes. Together, these initiatives strengthen Scandi Standard’s operational capacity, profitability, and long-term growth potential. What progress have you made on sustainability, and how has this impacted Scandi Standard during the year? Our sustainability initiatives and efforts to strengthen animal welfare are an integral part of how we are building Scandi Standard, and I am proud of the progress we made during the year Chicken has a lower carbon footprint than all other animal proteins, and has an important role to play in solving future food supply needs. A key focus of our work this year has been the development of next-generation feed. In several of our markets, we have developed and tested alternative feed solutions to partially replace soy with local protein sources, and initial results show that emissions can be reduced without compromising animal welfare. Feed accounts for a significant share of our carbon footprint, which makes reduc- tions in its climate impact a priority. Our Climate Transition Plan has also progressed from strategy to implementation. Concrete examples include BioLPG trials at our plant in Ireland. BioLPG is produced from biological residues, and the results to date are promising. In addition, more energy-efficient solutions and material optimisations have been implemented across KPIs MSEK 2025 2024 Net sales 14,083 13,024 EBITDA 1,047 931 Operating income (EBIT) 603 509 Non-comparable items – – Adjusted EBITDA1) 1,047 931 Adjusted operating income (EBIT)1) 603 509 Income after finance net 452 354 Income for the year 367 275 Net interest-bearing debt 2,032 1,935 Operating cash flow 243 443 Organic growth, % 10 5 Average number of employees 3,670 3,366 Chicken processed (tonne gw) 300,670 279,868 EBIT/kg 2.00 1.82 Lost Time Injuries, L TIFR 18.7 27.1 Use of antibiotics, % flocks 7.6 4.4 1) Adjusted for non-comparable items, see page 144. For a definition of alternative performance measures, refer to page 149. several of our markets. The fact that we were once again awarded an A rating by CDP is an important acknowledgement of our ambitious sustainability agenda and the transparency of our climate initiatives. I am proud that Scandi Standard is one of the few chicken producers in Europe to openly report animal welfare data, and that our shared processes and indicators allow us to monitor and continuously improve quality in a consistent way across all countries. For us, animal welfare is a key priority and always goes hand in hand with quality and resource efficiency. What are your expectations in the short term? We head into the coming year with a stronger organisation, a clear strategic direction and a growing European presence. Structural growth in the chicken market persists. We are uniquely positioned in our domestic markets and our expansion into Lithuania and the Netherlands gives us new platforms to grow from. We remain focused on achieving our financial targets for 2027, including annual revenue growth of 5–7 per cent, operating income per kilo of at least SEK 3, an operating margin above 6 per cent, and a return on capital employed above 15 per cent. This year’s performance demonstrates that we have both the ability and the operational discipline to get there. Finally, I would like to thank all of our employees, customers, suppliers and shareholders. Together, we have advanced our positions and made Scandi Standard a stronger company. We have a solid operational base, a growing market and favourable conditions to continue delivering higher growth and profitability in line with our targets. Stockholm, 18 March 2026 Jonas Tunestål Managing Director and CEO ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 8
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Our product segments Chicken consumption has steadily risen in the past ten years and Scandi Standard has benefited both from growth and from profitability in our Ready-to-cook and Ready-to-eat segments. Ready-to-cook Ready-to-cook Chicken products that require cooking or further preparation before they are ready for consumption. Ready-to-eat Ready-to-eat Chicken products that are prepared and ready to consume after some cooking or preparation. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 9
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Ready-to-cook Scandi Standard’s largest product segment with deboned and pre-sliced chicken that consumers prepare them- selves or purchase after being prepared in store. Since the segment is dominated by natural chicken fillets, considerable focus is placed on managing, for example, wing and leg products with the aim of always using the entire chicken. This includes initiatives such as better processing for deboning chicken or processing of charcuterie products. The focus is on full utilisation of the chicken and avoiding over production through improved processes and processing. 10,783 Net sales, MSEK 11% Organic growth 487 Operating income, MSEK Share of total net sales 2025 Share of Group net sales for RTC per country 2025 Sales development over time 2025, RTC, MSEK Sweden, 27% Denmark, 18% Norway, 16% Ireland, 27% Finland, 8% Lithuania, 4% Ready-to-cook, 76% Ready-to-eat, 20% Ingredients, 4% 0 2,000 4,000 6,000 8,000 10,000 12,000 20252024202320222021 ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 10
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Ready-to-eat Scandi Standard offers Ready-to-eat products that can be consumed directly or after being lightly heated up. Sales are to the foodservice and retail sales channels. Ready-to-eat broadens the Group’s product portfolio and provides our brands with growth opportunities. In this area, product development, which takes place in close collaboration with Scandi Standard’s customers and consumers is particularly important. Product development in close collaboration with customers and consumers expands the portfolio and generates growth. Share of total net sales 2025 Share of group net sales for RTE per country 2025 Sales development over time 2025, RTE, MSEK 2,785 Net sales, MSEK 10% Organic growth 97 Operating income, MSEK Sweden, 27% Denmark, 52% Norway, 17% Ireland, 0% Finland, 3% 0 500 1,000 1,500 2,000 2,500 3,000 20252024202320222021 Ready-to-cook, 76% Ready-to-eat, 20% Ingredients, 4% ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 11
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Other by-products The production of chicken products for human consump- tion results in by-products including feathers, offcuts and offal, which can be utilised in the production of animal feed and biofuels. Processing by-products is aligned with Scandi Standard’s strategy to maximise the value of the whole bird and thereby contribute to reduced waste, a lower carbon footprint for the chicken we consume and increased profitability. A significant portion of the by-products is processed by Farm Food, where Scandi Standard is a minority shareholder. Our stake in the company enables us to ensure efficient processing of by-products. Innovation creates new consumer products Some of the by-products can also be used in Ready-to-eat products. Modern machinery can now remove all meat from the bones, producing small pieces of meat that are well suited for products such as chicken sausages. Scandi Standard works proactively and continuously with multiple partners to develop better and more affordable alternatives to traditional meat products, thereby increasing consumer access to quality protein and reducing the carbon footprint of production. By-products offer considerable financial potential for the Group, given that earnings from human and animal consumption are significantly higher than those from applications such as biogas production. Share of total net sales 2025 Share of group net sales for other products per country 2025 Sales development over time 2025, Other, MSEK Processing by-products increases the value of the whole bird and contributes to reduced waste, a lower carbon footprint, and improved profitability. 516 Net sales, MSEK 10% Organic growth 58 Operating income, MSEK 0 100 200 300 400 500 600 20252024202320222021 Sweden, 33% Denmark, 28% Norway, 6% Ireland, 26% Finland, 7% Ready-to-cook, 76% Ready-to-eat, 20% Ingredients, 4% ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 12
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Our markets Scandi Standard’s domestic markets consist of the Nordic countries and Ireland, where the company has its own production and strong market positions. The company’s strategic investments in Lithuania and the Netherlands have established a coherent European production platform to meet demand in more European markets. The company also exports to Asia. All markets are characterised by a high level of domestic pride in locally produced products and Scandi Standard’s brands are well known and hold a strong position in each market. In Ireland, the per capita consumption of chicken is more in line with that of other European countries. In the Nordic countries the per capita consumption is lower, which means the growth potential is significant. Scandi Standard’s export markets consist primarily of the rest of Europe and Asia, where for the most part, we sell products such as wings and feet. Recently, Scandi Standard has invested in both Lithuania and the Netherlands, which further strengthens the company’s geographical position and also ensures a more integrated value chain. Chicken consumption in the Nordic countries and Ireland, tonnes1) 1) Source: Rabobank projections based on Eurostat, AVEC, FAO, MEG, SSB and Svensk Fågel. Net sales channel Retail, MSEK Net sales channel Foodservice, MSEK Net sales per market, external sales 0 2,000 4,000 6,000 8,000 10,000 20252024202320222021 Ready-to-cook Ready-to-eat 0 200 400 600 800 1,000 2025E202420232022202120202019201820172016 0 500 1,000 1,500 2,000 2,500 3,000 20252024202320222021 Ready-to-cook Ready-to-eat NORDIC COUNTRIES 9,748 MSEK ASIA 207 MSEK EUROPE 4,055 MSEK AFRICA 73 MSEK TOTAL 14,083 MSEK ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 13
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TRENDS & DRIVING FORCES Chicken consumption in the Nordic countries and Ireland (tonnes)3) Cost/kg protein type, cost/kg (SEK)3) 3) Source: Rabobank projections based on Eurostat, AVEC, FAO, MEG, SSB and Svensk Fågel. Chicken – a protein in structural growth Demand for chicken in Europe has increased steadily over the past decade, with consumption in the Nordic and Irish markets rising by 55 per cent between 2010 and 20251). Several long-term trends point to continued growth, and factors such as health considerations, affordability and sustainability suggest that chicken remains well positioned among protein choices. The strong market position of chicken has made it one of the fastest- growing animal proteins in Europe – a trend that benefits companies with local production, established brands and high efficiency. Health and lifestyle driving demand Chicken is a readily available and cost-effective protein that is healthy and nutritious. Increased awareness of the role of diet, combined with a growing preference for protein-rich snacks and meals, continues to drive demand. Lower carbon footprint and increased responsibility Chicken has a lower carbon footprint per unit produced than many other animal proteins 2).This makes chicken an attractive choice for consumers and customers seeking to reduce their climate impact – a perspective that is gaining importance as the food sector transitions towards more resource-efficient solutions. Changes in consumption patterns As households become smaller and more meals are eaten outside the home, demand for quick and convenient solutions continues to grow. This is a favourable trend for chicken, which is easy to prepare and versatile. It is therefore well suited as a protein in a wide range of delicious meals – from ready meals to restaurants as well as for family sit-downs. Dietary guidance and wide acceptance Dietary recommendations across much of Europe have gradually shifted towards protein sources other than red meat. Chicken is uniquely positioned for this trend – with no cultural or religious restrictions, high availability and consistent quality. Favourable conditions in a growing market Structural growth in the chicken market creates favourable long-term conditions for Scandi Standard. The company is well positioned to meet growing demand, with strong brands, efficient production, and a local presence in the Nordic Countries, Ireland, and across Europe. As a protein source, chicken offers nutritional quality, a lower carbon footprint and versatility, which continues to drive demand. Growth-drivers for chicken • Healthy and protein-rich • Lower carbon footprint than other animal proteins • Suitable for urban lifestyles, smaller households and families • Easy to prepare and versatile • Increased focus on ready meals and convenient solutions • Shifting norms away from red meat • Wide-scale cultural and religious acceptance 0 200 400 600 800 1,000 2025E20242023202220212020 0 20 40 60 80 100 120 Salmon Beef Pork Chicken 1) Including estimated 2025 figures. 2) Read about the carbon footprint of chicken on page 15. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 14
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The carbon footprint of chicken TRENDS & DRIVING FORCES Lamb Beef Pork Salmon Chicken Myco protein Egg 28.1 37.0 4.8 2.94.8 1.7 1.7 Chicken has a carbon footprint more than 90 per cent lower than beef. It also has a lower climate impact than pork and Norwegian salmon. At the product level, Scandi Standard has conducted third-party verified calculations of the carbon footprint for all of its domestic markets in recent years. The results of these extensive calculations indicate that less than 5 per cent of the total climate impact of chicken is attributable to the direct operations of slaughter - houses. The vast majority of the total climate impact is attributable to feed and its soy content. On average, feed represents 78 per cent of the total climate impact in Scandi Standard’s domestic markets. More information about the climate impact of chicken is provided in the Sustainability Statement on pages 62-66. 1) Scope 1 and Scope 2 from all production plants. All figures in the graph represent Swedish meat, except the figures for salmon (Norway) and myco protein (UK). Source: Open list – an excerpt from the RISE climate database for food v 3.0 59.3 g CO2e per kg product derives from Scandi Standard’s own operations 1) 78% of the carbon footprint of chicken derives from the feed >90% As a food product, the carbon footprint of chicken is 90 per cent lower than that of beef Kg CO2e/kg product ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 15
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Transparency and collaboration to ensure animal welfare Interest continues to grow in chicken production conditions. Scandi Standard’s integrated approach illustrates how animal welfare, quality and efficient resource use can be combined in practice. Nordic tradition and an integrated approach to the value chain As expectations around climate responsibility and transparency continue to rise, our clear direction is to ensure that animal welfare is fully integrated into a production model for lower climate footprint – not treated as a separate track. Scandi Standard’s approach is rooted in a Nordic tradition of stringent animal welfare standards and close collaboration with growers, which creates stability across the value chain and strengthens customer and consumer confidence. For Scandi Standard, animal welfare is a holistic commitment in which every step – from breeding to slaughter – must meet high quality standards. Prevention is a key priority, grounded both in ethical responsibility and in profitability. Healthy animals are strongly associated with better rearing, lower climate impact and more efficient use of resources. Transparency as a driver for quality and animal welfare Scandi Standard aims to be an industry leader in animal welfare and is currently one of the few European chicken producers to openly report animal welfare data. We apply the Scandi Chicken Quality Programme, developed in house, as an important tool for the systematic monitoring of animal welfare based on eight areas. The programme is used in all countries where the company operates and provides a common framework that facilitates comparison, follow-up and continuous improvement. Our experience shows that good animal welfare and efficient production are compatible, not contradictory goals. It is therefore important that discussions on future standards for chicken production balance animal welfare against both carbon footprint and competitiveness. Requirements that are not based on actual welfare outcomes risk leading to higher costs and a larger carbon footprint without improving animal wel- fare. Scandi Standard’s model shows that animal welfare, quality and competitiveness can be developed in parallel. The key to achieving this is clear objectives, transparency and long-term collaboration. TRENDS & DRIVING FORCES Animal welfare Loading and transport Lairage and stunning Grower skills and commitment Day-old chick quality Feed quality Housing environment Natural behaviour Breed characteristics ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 16
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Attractive future outlook Strong market trend for a versatile protein Chicken is a protein category with structural growth. Demand in both the grocery and the restaurant sectors is driven by a long-term rise in consumption in Europe, combined with an increasing focus on health, taste and proteins with a lower carbon footprint. Chicken’s versatility, wide availability and lack of cultural or religious barriers support stable demand and make it a suitable protein choice for a wide range of meals. Taken together, these factors support chicken’s competitive position as a protein choice and underpin a long-term growth trend. Strong market position and efficient production A local presence and an efficient production structure in each market give Scandi Standard a clear competitive advantage. The combination of modern facilities, strong brands and close collaboration with our growers facilitates high quality, traceability and trust. Our local roots also position us well to respond to changing consumer preferences and to quickly adapt to new market conditions. Healthy, affordable and a lower carbon footprint Chicken offers a competitive price combined with high nutritional quality and a lower carbon footprint compared with all other animal proteins 1). This makes it an attractive choice for consumers looking for a healthy protein with a lower climate footprint. Scandi Standard continues to develop and improve its processes with the aim of reducing its carbon footprint and ensuring responsible animal welfare practices throughout the value chain. Sustainable value creation for customers, consumers and owners Sustainability is integral to Scandi Standard’s business model and permeates the entire value chain. We generate environmental and economic value through responsible good animal welfare, resource-efficient production and circular initiatives. Our sustain- ability work contributes to increased competitiveness, stronger brands and long-term profitability, which benefits customers, consumers and shareholders alike. Preconditions for profitable growth Scandi Standard has the structural and operational prerequisites for achieving sustainable and profitable growth. We generate profit- ability and stable cash flows through continuous efficiency improve- ments, innovation and disciplined capital utilisation. Our focus on leveraging the significant profitability potential in the value chain, combined with cost efficiency and operational strength, contributes to long-term value growth for the company’s shareholders. Innovation and digitalisation Scandi Standard’s investments in innovation and digitalisation strengthen its future competitiveness. Data-driven production, precision rearing and digital traceability improve both quality and operational efficiency. Digital solutions also facilitate a higher level of transparency towards consumers, while creating new opportuni- ties for product development and customer relationships. 1 4 2 5 3 6 1) Read about the carbon footprint of chicken on page 15. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 17
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The Scandi Standard share The Scandi Standard share was listed on Nasdaq Stockholm on 27 June 2014 under the symbol SCST. In 2025 a total of 12.3 million shares (16.5) were traded. The average daily volume was 49,524 shares (67,283). The final price paid on the last day of trading in 2025 was SEK 103.8 (83.3), which entails an increase of approximately 25 per cent compared with the same period in the previous year. The share price has therefore increased by approximately 121 per cent since the listing in 2014. The share is a part of the Nasdaq Mid Cap index, which increased 6 per cent in 2025. On 31 December 2025, the market value totalled approximately MSEK 6,781 (5,441). Ownership structure On 31 December 2025, the number of shareholders totalled 7,227 (7,117). The holding of the ten largest share owners corresponded to 74 per cent (72) of the share capital. Swedish institutions, unit trusts and private individuals had holdings in the company corresponding 60 per cent (61) of the share capital as of 31 December 2025. Ownership structure on 31 December 2025 Holding No. of shareholders No. of shares Voting rights and share capital, % 1−500 5,534 651,818 1.0 501−1,000 726 583,823 0.9 1,001−10,000 811 2,365,691 3.6 10,001−20,000 56 842,260 1.3 20,001− 100 61,617,298 93.3 Total 7,227 66,060,890 100.0 Per share data, SEK 2025 2024 Earnings per share 5.61 4.20 Adjusted earnings per share1) 5.61 4.20 Dividend per share 3.302) 2.50 Operating cash flow, per share 3.68 6.70 Equity per share 41.00 39.97 Average No. of shares 65,393,422 65,327,164 No. of shares at the end of period 66,060,890 66,060,890 1) Adjusted for non-comparable items, see page 142. 2) Board’s proposal to the Annual General meeting 2026. 25% Share performance 2025 74% The percentage of share capital controlled by the ten largest owners The Scandi Standard share price performance, 1 January 2023 – 31 December 2025 0 20 40 60 80 100 120 140 160 202520242023 SEK Scandi Standard-aktien OMX Stockholm Mid Cap OMX Stockholm PI ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 18
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Geographic distribution of the share ownershipDividend The Board proposes a dividend for the financial year 2025 of SEK 3.30 (2.50) per share which corresponds to MSEK 216 (163). The proposed dividend corresponds to approximately 59 per cent (59) of income for the year adjusted for non-comparable items. The company’s dividend policy is to distribute a dividend of approximately 60 per cent of income for the year, adjusted for non-comparable items, on average over time. The dividend should be determined in a way that ensures that the proposed dividend is justifiable, which is based on the require- ments that the type, scope and risks of the company’s and Group’s operations place on the level of the company’s and Group’s equity, as well as the company’s and Group’s consolidation needs, liquidity and status in general. Share-based incentive programme Scandi Standard has three share-based long-term incentive pro- grammes for key individuals, L TIP 2023, L TIP 2024 and L TIP 2025. See Notes 1 and 5 for information about these programmes. Largest shareholders on 31 December 2025 Name No. of shares Capital, % Euroclear Bank S.A/N.V, W8-IMY1) 14,065,641 21.3 Investment AB Öresund 10,100,000 15.3 Lantmännen Animalieinvest AB 6,985,225 10.6 Nordea Funds 4,055,366 6.1 Eva Qviberg 3,892,988 5.9 Mats Qviberg 3,628,988 5.5 Nordnet Pensionsförsäkring AB 2,194,033 3.3 State Street Bank and Trust CO, W9 1,621,293 2.5 Anna Engebretsen Qviberg 1,430,374 2.2 Brown brothers harriman/Lux W8IMY WPR 1,174,542 1.8 Other 16,912,851 26 Total 66,060,890 100.0 1) Grupo Lusiaves SGPS shareholding via a trustee account. Sweden, 60% Nordic countries, 7% Europe, 27% USA, 5% Rest of the world, 0% Sverige, 60% Övriga Norden, 7% Övriga Europa, 27% USA, 5% Övriga världen, 0% ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 19
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Financial targets Comments The market for chicken is expected to continue to grow and Scandi Standard wants to grow alongside it. An improved product mix will also contribute to increased sales. The Group’s five-year average for 2025 amounted to 7.0 per cent, in part due to increased volumes and price increases, which was in line with our target. Comments The operational investments that Scandi is making are expected to increase profitability over time. In 2025, the Group posted an operating margin of 4.3 per cent, which was a year-on-year improvement of +0.4 percentage points and a step in the right direction toward the Group’s target. Comments The operating income per processed kg is a measure of our ability to extract greater value from every bird, which is an important part of our strategy. The outcome for 2025 was a year-on-year increase of more than SEK 0.18/kg and demonstrates the continued potential of utilising the value of the entire bird. Comments Scandi Standard expects to report a healthy return on capital employed. Return on capital employed was 12.5 per cent for 2025, which was a clear year-on-year improvement and a step in the right direction toward the Group’s target. Comments At the end of 2025, net interest-bearing debt in relation to EBITDA was a ratio of 1.9, indicating low net debt. This figure could temporarily exceed the target for utilising opportunities for acquisitions or other growth opportunities. Sales over time, MSEK EBIT/kgOperating margin, % ROCE, % Net interest-bearing debt/EBITDA Target: 5–7% average organic growth per year Outcome: 7% Target: >6% Outcome: 4.3% Target: >SEK 3.0 Outcome: SEK 2.0 Target: >15% Outcome: 12.5% Target: a ratio of <2.5 Outcome: a ratio of 1.9 Over time, Scandi Standard is to report organic growth of 5–7% (excluding currency effects). In the medium term, the operating margin is to exceed 6%. Operating income (EBIT) per processed kg is to increase to SEK 3.0/kg. Return on capital employed (ROCE) is to amount to 15% in the medium term. At the end of the year, net interest- bearing debt in relation to EBITDA is not to exceed a ratio of 2.5. Growth Operating margin EBIT/kg ROCE Net debt/EBITDA 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 20252024202320222021 Omsättning över tid RTC 0 1 2 3 4 5 20252024202320222021 Rörelsemarginal % 0 3 6 9 12 15 20252024202320222021 ROCE 0.0 0.5 1.0 1.5 2.0 20252024202320222021 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 20252024202320222021 Räntebärande nettoskuld/EBITDA1) ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 20
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Providing locally produced, healthy, safe and affordable protein Our products form the basis of our sustainability strategy and business strategy. We strive to offer high quality products, with the best food- safety standard, which are at the same time healthy, locally produced and cost-efficient compared with other animal proteins. This enables us to contribute to local businesses and to be an important part in the daily lives of people in all our domestic markets. Maximised resource usage and minimised waste Every chicken and the entire chicken matters. Being able to use as much as possible of every chicken is the key to sustainability and profitability. New innovations, improved processes and product development are all important factors for attaining our goals. At the same time, it is crucial to minimise waste – not only food waste but also other types of waste arising in our value chain. When it comes to food waste, we have – in addition to the work undertaken in our own production – a vital role to play in collaborating with customers and in making it easy for end- consumers to reduce food waste. Scandi Standard strives to promote the joy of food, health and wellbeing, aligned with food production that delivers a low climate impact – from farm to fork. To achieve the above, Scandi Standard’s sustainability initiatives are integrated in operations and the work is guided by goals set by the company’s Board of Directors. Results and progress are monitored on a quarterly basis and reported transparently to the market. In the following pages, we present our strategic direction towards 2030, our sustainability goals and the KPIs used to measure progress. For more information on our sustainability work, see page 51. Our sustainability goals and direction towards 2030 1) Sciencebasedtargets.org Safe and healthy workplaces and committed employees Our employees are the foundation of our operations. Ensuring that they have a safe and healthy work environment is our highest priority. It is also a prerequisite for retaining and attracting qualified staff. We know that motivated employees who feel included also perform better and are important ambassadors for Scandi Standard. Reducing climate impact – from farm to fork Although chickens are the animal protein with the lowest climate impact, we still have room for improvement. We have taken it upon ourselves to set science-based climate targets throughout the value chain. The targets, which are validated by the Science Based Target initiative 1), are aimed at reducing emissions linked to energy and industry in own operations and in the value chain by 42 per cent by 2030, with 2021 as the base year. More- over, Scandi Standard has defined FLAG (Forest, Land and Agriculture) targets and committed to a 30.3 per cent reduction in emissions linked to land management and land use change, both in its own operations and in the value chain during the same period. More than 90 per cent of total emissions occur beyond the sphere of our own operations. Consequently, our efforts to reduce climate impact are closely linked to our relationship with our growers, to feed efficiency and structured work with biodiversity. Reduced and improved use of plastics when developing new packaging Packaging is the key to food safety and product sustainability. Good packaging also reduces food waste. However, the use of virgin plastic is a problem for the climate, the oceans and the earth’s ecosystems. Their use constitutes a business risk, as plastic packaging is increasingly subject to regulatory control. The key issue is for packaging to be recyclable and not to contain any more plastic than is necessary and, where possible, to be made from recycled or bio-based materials. Safeguarding and developing our animal welfare work Scandi Standard’s veterinarians and other chicken specialists work together with all of our growers on a daily basis to ensure that our chickens thrive. We have far-reaching Group-wide policies on the use of antibiotics and on animal welfare, through which we ensure, for example, the Five Freedoms of animal welfare. However, we can be even better. A healthy and thriving chicken does not need any antibiotics, and efficiently converts feed into meat. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 21
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Sustainability goals Comments Scandi Standard has set science-based climate targets which were validated by the Science Based Targets initiative (SBTi) during 2023. In 2024, targets according to the *Forest, Land and Agriculture (FLAG) and Net Zero standards were approved. In total, emissions have increased with 8.2 per cent between 2021 and 2025, which has been driven mainly by the acquisitions in Lithuania and the Netherlands, as well as the organic growth in Scandi Standard's home markets. Scandi Standard's Climate Transition Plan (CTP) was adopted late 2024. During 2025, the work to operationalize the plan has commenced and several projects are ongoing, aiming at reducing emissions in own operations as well as the value chain. To operationalize the CTP is an important step towards reaching the 2030 climate targets, and this is also reflected by integration of sustainability data, including climate, in investment and reinvestment decisions. When the new targets were submitted to Science Based Targets initiative, emissions for the base year 2021 as well as the reference year 2023 were restated to ensure comparability. Emissions for 2022 have not been recalculated and are not reported. For a detailed description related to Scandi Standard’s climate strategy and analysis of the results, see pages 62-66. Comments Antibiotic use in the Nordic countries remains very low. At Group level, overall usage reflects mainly the performance in Ireland as well as at the Lithuanian farms acquired during the second quarter. During the year, we continued to focus on key factors such as the quality of day-old chicks and the housing environment. Comments Systematic efforts to reduce work-related injuries resulting in lost time have continued to yield results. Important components of improvement initiatives include management’s focus on the issue and the improved processes for following up on incidents and accidents at production sites. Scandi Standard commits to, by 2030, from the base year of 2021, reduce its CO2e emissions in its own operations (scope 1 and 2) with 42 per cent for Energy & Industry emissions. The same reduction apply separately for the value chain (scope 3). In addition, FLAG* emissions (scope 1 and 3) should be reduced with 30.3 per cent. The target is for less than one per cent of all flocks to be treated with antibiotics by 2030. The frequency of work-related injuries resulting in absence (lost time injuries per million hours worked) is to be less than 15 by 2030. 0 2 4 6 8 10 12 20252024202320222021 7,0 4,45,2 10,8 8,1 % Flockar 0 10 20 30 40 202520242023202220210 40,000 80,000 120,000 160,000 Scope 3Scope 1 & 2 0 200,000 400,000 600,000 800,000 1,000,000 Scope 1 & 3 2021 2023 2024 2025 2021 2023 2024 2025 Ton CO2e Ton CO2e 0 40,000 80,000 120,000 160,000 Scope 3Scope 1 & 2 0 200,000 400,000 600,000 800,000 1,000,000 Scope 1 & 3 2021 2023 2024 2025 2021 2023 2024 2025 Ton CO2e Ton CO2e Climate impact, tonnes CO2e, Energy and Industry Climate impact, tonnes CO2e, FLAG Use of antibiotics, % of treated flocks Lost time injury frequency rate (LTIFR) per million hours worked Climate impact Use of antibiotics Lost Time Injuries (LTIFR) Target 2030: Energy and Industry Scope 1 & 2: –42% Scope 3: –42% FLAG* Scope 1 & 3: –30.3% Performance 2025: Energy and Industry Scope 1 & 2: 29,700 tonnes CO2e (–5.8%) Scope 3: 158,634 tonnes CO2e (+20.4%) FLAG* Scope 1 & 3: 867,600 tonnes CO2e (+6.8%) Target 2030: <1% Outcome 2025: 7.6% Target 2030: <15 Outcome 2025: 18.7 ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 22
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STRATEGY Strategy for profitable and sustainable growth 24 Increase the value of our protein 25 Increased efficiency and resource use 26 Better together 27 Integrated sustainability 28 Our value chain and business model 29 Scandi Standard Annual and Sustainability Report 2025 | 23ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER
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Strategy for profitable and sustainable growth Scandi Standard continued its strategic work during the year and implemented several initiatives to support the company’s goals until 2027. The company took additional steps towards becoming a future-proof Group that sets the standard for the industry through high-quality chicken production. Scandi Standard has a strong focus on animal welfare, environmental and social responsibility, and customer satisfaction. This is the path toward profitable and sustainable growth. The company has identified four strategic areas that are prioritised for its continued development.Increase the value of our protein Our business, production and product develop- ment strategies are aimed at utilising the whole bird and adding value concurrent with reducing food waste and strengthening our business. Scandi Standard aims to grow in products with a high degree of processing, while the company establishes a broader product portfolio within several categories. One prerequisite for Scandi Standard’s success here is working closely with consumers, collaborating with our customers and being agile in our development processes. /Read more on page 25. Increased efficiency and resource use Scandi Standard achieves tangible efficiency with our work methods and processes through increased standardisation and collaboration throughout the entire organisation and value chain. This also concerns further digitalising and automating our operations to leverage technological developments and strengthen our competitiveness. / Read more on page 26. Better together A positive collaborative climate where the Group’s employees support each other leads to increased creativity, innovation and a healthy, inclusive and committed work environment. It also creates the conditions for all employees to feel satisfied, committed and better equipped to contribute to the success of the entire organisation. For these reasons, Scandi Standard promotes open communication and collabora- tion and secures mutual understanding of the company’s values and targets. / Read more on page 27. Integrated sustainability Scandi Standard exercises its pronounced commitment to sustainability initiatives on both the Group level and locally through tangible, standardised and measurable actions. Scandi Standard has a focus on good animal welfare and on minimising our climate impact. There- fore, the Group assumes responsibility for its impact on people and the environment through- out the value chain – both in own operations as well as in the supplier, transport and consumer stages. We also work actively for better control and follow-ups. / Read more on page 28. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 24
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Increase the value of our protein By focusing on utilising the entire bird, food waste is reduced while Scandi Standard’s profitability is strengthened. Scandi Standard is to grow through a high degree of processing and broadening the product portfolio within various categories. This requires the company to be close to its consumers, collaborate with customers and having dynamic innovation processes. Profitable growth driven by higher processing and profitability During 2025, Scandi Standard continued to focus on higher processing levels, improved utilisation of raw materials and greater production efficiency. The acquisition and renovation of the Ready-to-eat plant in Oosterwolde, the Netherlands, was one of this year’s initiatives. In the third quarter, the first production line was taken into operation, which was ahead of schedule, enabling close and efficient collabora- tion between several units in the Group. Work will continue in 2026 to optimise and complete the second and third production lines. The investment in the Netherlands strengthens the company’s position in Ready-to-eat and provides Scandi Standard with a scalable platform to meet strong and growing demand in the European market. Improved operational structure in domestic markets Several targeted investments have been made in our domestic markets, including the expansion of deboning capacity in Ireland and Sweden. The investments contribute to higher efficiency and better raw material utilisation. During the year, operations in Lithuania progressed faster than planned, thereby strengthening the company’s raw material supply. Ready-to-eat capacity has been strengthened through expansion and higher volumes in several of our domestic markets. These investments have already delivered improved margins and greater stability. Optimisations and production relocations in the Nordic countries have also been implemented, with the aim of strengthening the segment’s long-term capacity and efficiency. Collaboration and innovation to strengthen value creation and efficiency Increased collaboration with key customers has strengthened Scandi Standard’s product development and volume planning. More extensive collaboration within Ready-to-eat across the Nordic countries enables Swedish operations to utilise volumes in Norway and Denmark. This increases flexibility and supports a more cost- effective sourcing and production model. Innovation and digitalisation continue to drive business develop- ment. Quality and productivity are enhanced through digital traceability and data-driven governance. One example is the Kronfågel Future project, which promotes a more structured approach to product development and reduced complexity in the product range and production. A stronger platform for long-term value growth Scandi Standard has strengthened the conditions for increasing the value of its protein through targeted investments, expanded Ready- to-eat capacity, efficiency initiatives and closer partnerships with customers. These initiatives strengthen the operational platform and create favourable conditions for adding greater value to our products and achieving long-term profitable growth. Focus areas • Improve utilisation of the entire chicken with the aim of as much of the chicken as possible being turned into good food • Drive growth in the Ready-to-eat segment • Drive product innovation and invest in new technology • Follow consumer trends carefully • Increase collaboration with customers ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 25
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Increased efficiency and resource use We achieve tangible efficiency with our work methods and processes through increased standardisation and collaboration throughout the entire organisation and value chain. Moreover, the Group’s continued digitalisation and automation of our operations leverages technological developments to help strengthen our competitiveness. Better control and higher profitability in the value chain In 2025, Scandi Standard established the Scandi Chicken unit with the aim of capturing significant profitability potential across the value chain. Scandi Standard is integrating more of primary pro- duction – from breeding to slaughter – within a shared structure, to thereby enable greater value capture and reduced reliance on external parties. The integration model supports a long-term approach and makes it easier to steer development in line with our targets. Vertical integration supports higher processing levels and creates favourable conditions for quality and animal welfare. Scandi Chicken will thus be a key driver for building a more robust business and strengthening the company’s future competitiveness. Vertical integration for added value Bringing more parts of the value chain in house makes the chain more cohesive and reduces the company’s vulnerability. It also enhances traceability, which supports quality initiatives and food safety. When processes are managed and monitored in the same way across all countries, it also becomes easier to develop produc- tion and work toward shared goals. This model contributes to a more stable cost base and a better-aligned organisation. Operational development in Lithuania In 2025, Scandi Standard took an important step by acquiring and further developing a number of farms in Lithuania. The farms are a key resource for the business area, and investments in technology and working practices are already delivering results. Close collaboration with our animal welfare teams has ensured that Scandi Standard’s ambitions are embedded throughout the business. Training and follow-up continue, and future efforts will place greater emphasis on digital tools and AI-based monitoring to enhance animal health and operational performance. Group standards and processes Scandi Chicken has responsibility for parts of primary production and functions as a Centre of Excellence for the Group. It is respon- sible for developing common processes and ways of working that strengthen cross-country collaboration and establish a clearer direction for Scandi Standard’s organisation within the live animals area. Animal welfare remains a priority and ongoing investments are being made to ensure consistently high standards across the company’s markets. Scandi Standard is using integration to lay the foundation for a more coordinated, efficient and sustainable value chain. Focus areas • Maintain efficiency without compromising on safety, quality or sustainability • Standardisation, collaboration and synchronisation • System integration and development • Increased automation ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 26
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Better together A positive collaborative climate promotes creativity, innovation and an inclusive work environment. This promotes satisfaction and contributes to long-term success for the entire organisation. Scandi Standard strives for open communication, collaboration and mutual understanding for the company’s values and objectives. New structure for scalability and efficiency Scandi Standard reorganised in 2025 with the aim of strengthening the Group’s efficiency and profitability within the segments Ready- to-cook and Ready-to cook. The revised model revolves around four units: Scandi Home Markets, responsible for the Group’s domestic markets and the local value chains; Scandi International, focused on sales and expansion outside the domestic markets; Supply Chain Excellence, which drives production and logistics improvements for all markets; and Scandi Chicken, responsible for primary production and backward integration in the value chain. In combination with strengthened Group functions, the structure improves conditions for effective governance and growth within the segments. Clearer responsibilities and governance processes The new organisation clarifies responsibilities and mandates, which improves operational monitoring and transparency. Standardised processes and shared priorities create one unified Scandi Standard, and improve forecasting and scalability. In parallel, shared key processes and clearer decision-making paths have strengthened the governance structure, providing improved transparency and control at Group level. Leadership and digital support as enablers The initiatives implemented to ensure that the reorganisation has the intended effect included the establishment by Scandi Standard of a Group-wide leadership programme that creates a shared under- standing of responsibilities and expectations in the organisation. In parallel, continued HR process digitalisation has improved the conditions for setting goals and following up for employees, managers and teams. This will result in more consistent manage- ment and a reduced administrative burden within the Group. Better Together as an operational principle The new operational model, together with strengthened governance and shared supporting initiatives, shows how Scandi Standard is delivering Better Together in practice. Conditions for efficiency and profitable growth, both in existing and in new markets are strength- ened by increased coordination and clearer responsibilities within the Group. Focus areas • Create a safe and healthy workplace where every employee can develop • Synchronise and calibrate targets and KPIs between countries and functions • Develop leadership, teamwork and employee communication • Develop Scandi Standard’s brand, culture and vision ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 27
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Integrated sustainability As a food producer, our operations depend on well-functioning ecosystems and healthy chickens that are treated well. Maintaining a long-term perspective and integrating sustainability initiatives at all levels of operations is therefore a prerequisite for Scandi Standard’s continued success. Climate actions throughout the value chain Scandi Standard’s Climate Transition Plan was adopted at the end of 2024. It serves as the roadmap for achieving the company’s Science Based Targets by 2030. It sets out how climate action will be implemented – not just as a sustainability initiative, but as an integral part of the business strategy. In 2025, implementation of the plan accelerated, with multiple projects initiated across the business. One example is the gas tests conducted in Ireland during the third quarter. BioLPG has replaced fossil gas, which reduced emissions in own operations for the full year. Responsible production with targets and follow-up Climate impact is now a factor in investment decisions, ensuring that even smaller projects – including energy-efficient cooling systems and material optimisation – play an important role. Mea- sures implemented during the year have contributed to improvements across several key performance indicators, including CO₂ intensity, use of antibiotics and L TIs, which are directly tied to financing and strategic monitoring. Rising stakeholder expectations and sustainability requirements are becoming increasingly important to the Group’s operational and financial performance. Developing feed for a lower carbon footprint As the largest contributor to Scandi Standard’s carbon footprint, feed accounts for around 70 to 80 per cent of value chain emissions and is also a significant cost component. Accordingly, efforts intensified in 2025 to develop feed with a lower climate impact. This involves both reducing the share of soy in feed and ensuring that the soy used is certified. In Denmark, trials have been conducted to replace soy with oats, potato protein and rapeseed, with the aim of reducing the soy content by up to 30 per cent. In Finland, progress has been made in trials of alternative protein sources, including beans and peas. Progress has also been made in trials of animal protein, which could include bone meal, as well as in planning for the use of insect protein and mycoprotein. In Ireland, two large-scale trials have been conducted in which soy was reduced by 10 per cent and replaced with locally grown beans and sunflower meal. The results show that this was achieved without compromising animal welfare and with a reduction in climate impact of around 3 per cent. Direction for future work In 2026, efforts will continue to develop next-generation feed solutions. Scandi Standard is gradually building a toolbox of solutions, while concurrently exploring potential partnerships with strategic cus- tomers and suppliers. The aim is to lead the development of feed solutions that reduce climate impact while safeguarding quality and animal welfare. Focus areas • Joint targets and standardised processes for reporting and follow-ups • Local action plans where sustainability is an integrated part of our daily operations • Increased efficiency and quality through better animal welfare and products produced with less climate impact ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 28
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3. Rearing 4. Slaughtering, processing and packing 5. Distribution and sales 1. Feed production 2. Parent birds and hatchery Our value chain and business model Scandi Standard operates through an integrated value chain that covers the entire process – from feed production, parent bird and egg production to processing, distribution and sales. By combining local presence with strong brands and high resource efficiency, the company strengthens competitiveness, reduces climate impact and creates long-term value. 1. Feed production Feed is produced locally, with locally grown grains such as wheat and oats together with imported crops such as soy and corn. 2. Parent birds and hatchery In parent bird production, 150 to 170 eggs are produced per hen for 40 weeks. These are then transported to the hatchery for the hatching process. 3. Rearing Day-old chicks are transported from the hatchery to the rearing houses, where they spend five to eight weeks depending on the type of chicken and rearing method. 4. Slaughtering, processing and packing Broilers are transported to the slaughterhouse, where the end products are then packed or transported to processing plants. 5. Distribution and sales Finished products are distributed to customers and consumers in retail stores, restaurants, catering centres and industrial kitchens. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 29
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Local presence and long-term partnerships Primary production takes place in close collaboration with contracted growers in Sweden, Norway, Denmark, Finland and Ireland as well as at our own farms in Lithuania. Sweden operates its own parent bird rearing, hatching egg production and hatchery operations, which ensures consistent quality and supports minimal use of antibiotics. In Ireland, Scandi Standard also operates its own feed production. In other countries, feed is purchased by growers and, on average, imported soy accounts for approximately one fifth of the feed ration. Third- party certifications help ensure traceability and responsible pro- duction. The company is also pursuing long-term efforts to replace part of the soy content with alternative, more locally sourced protein sources in order to reduce its climate footprint. Quality in the early stages of production High quality in the early stages of production is crucial for healthy chickens, good feed efficiency and stable growth. Scandi Standard has therefore organised its production to ensure animal welfare, quality and efficient resource utilisation at every stage. Slaughterhouses are located in close proximity to rearing, thus reducing transport times and enhancing animal welfare and operational efficiency. When they arrive at the lairage, the chickens are kept in a calm and dark environ- ment prior to stunning, which is primarily performed using carbon dioxide. In Denmark and Lithuania, electrical stunning in water baths is used. After slaughtering, the chickens are cooled in a cooling tunnel before further processing. In-house processing and robust logistics flows Scandi Standard operates its own production plants for processing fresh, frozen and cooked chicken products. Packaging plays a key role in food safety and in reducing food waste further down the value chain, while the impact of plastics on climate and nature remains an important issue. The company uses transportation at every stage of the value chain, which encompasses live animals and finished products. Efficient logistics solutions ensure short lead times and chilled products are often in stores the day after packaging. Deliveries are made via subcontractors or through customers’ own distributors. Sales are directed both at retail and at foodservice, which provides risk diversification and greater stability. Chicken is a valued protein source with a lower carbon footprint than all other animal proteins. Scandi Standard works continuously to further reduce that footprint and minimise waste along the value chain, for example by adapting packaging sizes. Integrated sustainability Structured sustainability work has been integrated throughout the value chain. The focus is on reducing climate impact, enhancing circularity and safeguarding animal welfare. By-products are used for energy recovery, animal feed and other applications, which contributes to an efficient use of resources. The company’s business model rests on four pillars: contract rearing, in-house production and processing, strong brands and a broad offering. It offers a stable platform for profitable growth, lower climate impact and increased value for owners, customers and society. For more information on Scandi Standard’s operations across the value chain, broken down by country and including the impacts, risks and opportunities, which are assessed as material, please see pages 54-55. Overview of the various parts of the value chain ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 30
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CORPORATE GOVERNANCE Corporate governance report 32 Board of Directors 39 Group Management 41 Auditor’s report on the Corporate Governance Statement 42 Scandi Standard Annual and Sustainability Report 2025 | 31ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER
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Corporate governance within Scandi Standard aims to promote sustainable value creation for shareholders and a sound corporate culture where business opportunities are utilized within the framework of good risk control. This corporate governance report, which is a part of the Annual Report for 2025, has been prepared by the Board of Directors and has been examined by Scandi Standard’s external auditor. No deviations from the Swedish Corporate Governance Code are reported. No breaches of Nasdaq Stockholm’s applicable regulations have occurred and neither has any breaches of good practice in the stock market been reported by Nasdaq Stockholm’s surveillance or the Swedish Securities Council. Scandi Standard AB (publ), corporate identity number 556921-0627 (the company) with subsidiaries (the Group or Scandi Standard) is a Swedish Public Limited Liability Company with its registered office in Stockholm. The company’s shares have been listed on Nasdaq Stockholm Mid Cap since June 2014. Responsibility of corporate governance in the form of management and control of Scandi Standard is distributed between the shareholders at the general meetings, the Board of Directors with appointed committees, and the Managing Director, pursuant to applicable external laws and regulations and internal steering documents in the form of Scandi Standard’s Articles of Association, as well as internal codes, policies, guidelines and instructions. Share capital and shareholders As of 31 December 2025, the share capital amounted to SEK 659,663 repre- sented by 66,060,890 shares with a quota value of SEK 0.009986 per share. Each share carries one vote. All shares have equal rights to Scandi Standard’s assets and profits. The number of shareholders as of 31 December 2025 was 7,227. The holding of the ten largest owners corresponded to 74 per cent of the share capital and three shareholders, Grupo Lusiaves, Investment AB Öresund and Lantmännen Animalieinvest AB had a holding in the company in excess of ten per cent, amounted to 21.3 per cent, 15.3 per cent and 10.6 per cent respectively of the share capital as of 31 December 2025. Approximately 40 per cent of the share capital was owned by foreigners as of 31 December 2025. More information of the share and shareholders, see page 18. General Meeting of shareholders The General Meeting of shareholders is Scandi Standard’s highest decision- making body, through which shareholders exercise their rights to make decisions on Scandi Standard’s affairs. There are no restrictions on the shareholders’ rights in the Articles of Association or, as far as the company is aware of, in any shareholders’ agreements. The Annual General Meeting (AGM) in the company shall be held in Stockholm, Sweden, within six months from the end of the financial year. Besides the AGM, extraordinary General Meetings may be convened. To participate in the decision-making at the Annual General Meeting requires the shareholders presence at the meeting, either in person or through proxy. In addition, the shareholders must be registered directly in the share register kept by Euroclear five business days prior to the General Meeting, and to announce participation no later than the date specified in the notice convening the meeting. Annual General Meeting 2025 The AGM 2025 was held in Stockholm, Sweden on April 29. Resolutions by the AGM included, among others: • Adoption of the income statement and the balance sheet in the Annual report for the Parent Company and the Group in 2024 • Dividend of SEK 2.50 per share for the 2024 financial year • Discharge of liability for the Board members and the Managing Director for the 2024 financial year • Approval of the remuneration report • Re-election of Johan Bygge, Øystein Engebretsen, Paulo Gaspar, Pia Gideon, Henrik Hjalmarsson, Cecilia Lannebo, Lars-Gunnar Edh and Sebastian Backlund as Board members • Re-election of Johan Bygge as Chairman of the Board • Re-election of Paulo Gaspar as vice Chairman of the Board • Total fees to the Board for the period up to the end of the next AGM should amount to SEK 4,620,000, of which SEK 1,040,000 to the Chairman of the Board, SEK 570,000 to the vice Chariman of the Board, SEK 415,000 each to the other five Board members not employed by the company or any of its subsidiaries, SEK 180,000 to the Chairman of the Risk and Audit Committee and SEK 90,000 each to the other member of this Committee and SEK 80,000 Corporate governance report Governance structure Major external laws and regulations • Swedish Companies Act • Swedish Annual Accounts Act • Nasdaq Stockholm’s regulations, Nordic Main Market Rulebook for Issuers of Shares • Swedish Corporate Governance Code • Other Swedish and foreign laws and regulations Major internal steering documents • Articles of Association • Procedure for the Board of Directors, Instruction for the Managing Director, Instruction regarding financial reporting to the Board of Directors etc • Code of Conduct • Other codes, policies, guidelines and instructions INFORMATION ELECTORS ELECTIONS RESOLUTIONS PROPOSALS Shareholders by General Meeting Board of Directors Managing Director and Group Management Nomination Committee External Auditor Risk and Audit Committee Remuneration Committee IrelandDenmark FinlandNorwaySweden Lithuania Netherlands Segment Ready-to-cook Segment Ready-to-eat ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 32
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to the Chairman of the Remuneration Committee and SEK 40,000 each to the other members of this Committee • Re-election of Öhrlings PricewaterhouseCoopers AB as Scandi Standard’s external auditor until the end of the next AGM and the fees to the auditors • Long-term incentive programme 2025 (L TIP 2025), authorisation for the Board of Directors to acquire and transfer own company shares to hedge the commitments under L TIP 2025 on the conditions set forth in the AGM 2025 minutes, available at the company web site https://investors.scandistandard. com/en/general-meeting. Annual General Meeting 2026 The Annual General Meeting (AGM) 2026 will be held in Stockholm on 28 April at 10.00 AM. For more information regarding the AGM see page 150 and at the company website https://investors.scandistandard.com/en/general-meeting. Nomination Committee The Nomination Committee represents the shareholders of the company and shall, in accordance with the Nomination Committee instruction, which is available on the company web site: https://investors.scandistandard.com/en/ nomination-committee. The Nomination Committee for the AGM 2025 consisted of Anders Wennberg, chairman appointed by Investment AB Öresund, Avelino Gaspar, appointed by Grupo Lusiaves, Henrik Sundell, appointed by Lantmännen Animalieinvest AB, Nicklas Paulson appointed by Eva Qviberg and Johan Bygge, Chairman of Scandi Standard AB (publ). The proposals of the Nomination Committee to the 2025 AGM and an account of the Nomination Committee’s work were included in the notice convening the Annual General Meeting, which was published on the company’s website https://investors.scandistandard.com/en/general-meeting. The 2025 Annual General Meeting resolved in accordance with all the Nomination Committee’s proposals. The Nomination committee for the AGM 2026 consists of Avelino Gaspar, who after a unanimous decision by the nomination committee, was elected chairman, and appointed by Grupo Lusiaves, Anders Wennberg, appointed by Investment AB Öresund, , Henrik Sundell, appointed by Lantmännen Animalie- invest AB, Nicklas Paulson, appointed by Eva Qviberg and Johan Bygge, Chairman of Scandi Standard AB (publ). The Nomination Committee’s proposals to the AGM 2026 The proposals of the Nomination Committee to the 2026 AGM and a state- ment for the Nomination Committee work will be available on the company website https://investors.scandistandard.com/en/general-meeting. The proposals and the statement will be included in the notice convening the AGM, which is available on the company website https://investors. scandistandard.com/en/general-meeting. Diversity policy The nomination committee has determined that Rule 4.1 of the Swedish Corporate Governance Code is to be applied as board diversity policy. This means that when preparing its proposals to the annual general meeting, the nomination committee will consider that the Board of Directors is to have a composition appropriate to Scandi Standard’s operations, phase of develop- ment and other relevant circumstances. The board members are collectively to exhibit diversity and breadth of qualifications, experience and background. Gender balance shall be sought. All board assignments in Scandi Standard are to be based on merit with the prime consideration being to maintain and enhance the Board of Directors’ overall effectiveness. Within this, a broad set of qualities and competences is sought for and the nomination committee recognises that diversity (including qualifications, experience, background) is an important factor to take into consideration. Nomination Committee for the 2026 AGM The names of the members of the Nomination Committee as set out below were announced in a press release on 24 October 2025. Member Appointed by Per cent of share capital 2025-12-31 Per cent of share capital 2025-08-31 Independent1) Avelino Gaspar Grupo Lusiaves, Chairman 21.3% 20.8% Yes/No Anders Wennberg Investment AB Öresund 15.3% 15.3% Yes/Yes Henrik Sundell Lantmännen Animalieinvest AB 10.6% 10.6% Yes/Yes Nicklas Paulson Eva Qviberg 5.9% 5.9% Yes/Yes Johan Bygge Chairman of the Board of Scandi Standard AB (publ) Yes/Yes 1) Refers to independence of the company and its senior management and the independence of the company’s largest shareholder in termsof votes or any group of shareholders who act in concert in the governance of the company. Matters to be resolved by the AGM: • Adoption of the income statement and the balance sheet in the Annual Report for the Parent Company and the Group • Dividend • Discharge of liability for the Board members and the Managing Director • Election of Chairman of the Board, other Board members and external auditor • Fees to the Chairman of the Board, other non-employed Board members and the external auditor. • Long-term incentive program (L TIP) • Authorization for the Board to resolve on the issue of new shares and to acquire and transfer own shares to hedge commitments under L TIP • Other matters in accordance with the Swedish Companies Act ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 33
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Board of Directors According to the Company’s Articles of Association, the Board of Directors shall consist of no less than three and not more than nine members, without deputy members. The AGM elects the Board members and the Chairman of the Board. The Board comprised eight ordinary members during the AGM in 2024 and 2025. The Board comprised for both years only of ordinary members, with no deputies and no employee representatives. For more information on the Board of Directors, see pages 39-40. Independence The Board is considered to be in compliance with the independence require- ments of the Swedish Corporate Governance Code in that the majority of the Board members are independent of the company and its management and at least two of these Board members are also independent of Scandi Standard’s major shareholders. See the table on page 35. The Board’s tasks and responsibilities The Board of Directors is responsible for the organisation and management of the company’s affairs in the interest of all shareholders and safeguard and promote a good company culture. The Board’s responsibility and work are governed by laws and regulations as well as internal steering documents, including the articles of association and the procedure for the Board of Directors. In addition, the General Meeting can provide instructions. The Procedure for the Board of Directors describes the Board’s tasks and responsibilities, the work of the Board including responsibility for the Chairman as well as responsibilities delegated to Committees appointed by the Board, Board meetings and information and reporting to the Board, management of insider information, management of conflict of interest, relations with Nasdaq Stockholm, information and reporting to the Board, and information about corporate governance. The Procedure is reviewed annually and adjusted as needed. In addition to the inaugural Board meeting held in conjunction with the AGM, the Board shall meet at least six times a year. The Board has established an Instruction for the Managing Director, including among other things specifications of issues requiring the Board’s approval and an instruction regarding financial reporting to the Board. Board tasks and responsibilities: • Appoint, evaluate and, if necessary, dismiss the Managing Direct or • Establish the overall objectives and strategy • Identify how the sustainability issues affect risks and business opportunities • Define appropriate guidelines in internal steering documents to govern the company’s conduct in society, with the aim of ensuring its long-term value creation capability • Define necessary internal steering documents incl. Code of Conduct • Decisions on investments, incl. acquisitions, divestments and financing in accordance with set approval procedures • Ensure an effective system for follow-up and control of the company’s operations and the financial result and financial position, and associated risks • Ensure that there is a satisfactory process for monit oring the company’s compliance with laws and other regulations, as well as internal steering documents • Ensure that the external communication is characterized by openness and is accurate, reliable and relevant in e.g. interim reports, annual reports and other reports • Approval of interim reports, financial statements, and annual reports The Board of Director’s work 2025 A J F M J M A O S D J N • Dividend proposal for 2024 • Approval of the Year-end/Q4 report 2024 • Decision to acquire the production facility for Ready-to-eat products in the Netherlands • Strategy for interest rate hedges • Decision to acquire chicken farms in Lithuania • Report from the external auditor • Insurances • Decision on dividend for 2024 • Approval of the Annual Report for 2024 • Notice of Annual General Meeting 2025 • Steering documents • Site visit Lithuania • Approval of the interim report for Q1 2025 • Annual General Meeting 2025 • Inaugural Board meeting • Steering documents • ERP investment review • Approval of the interim report for Q2 2025 • Strategy • Approval of the double materiality assessment • Approval of the interim report for Q3 2025 • Annual risk review and contingency planning for unforeseen events • Steering documents • Site visit in Netherlands • IT and cyber security training • Decision on repurchase of own shares • Insurance review • Financial targets 2026 • Evaluation of Board and CEO • Steering documents • Strategy for interest rate hedges ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 34
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Board activities in 2025 In 2025, the Board held 12 meetings, of which one per capsulam including the statutory Board meeting. The standing items on the agenda for the ordinary Board meetings include an operational and financial review of the operations against set goals and an outlook for the coming quarter, a review of investments, and reports from the committee of the Board of Directors. In addition, the Board continuously addresses strategic issues concerning the market, product development, purchasing, production, personnel, investments, acquisitions, financing and insurances. Important issues for the Company and the Group that were addressed during the year included: • Strategic priorities and goals • Continuing development of the sustainability platform, including appro val of the double materiality assessment • Strategy for interest rate hedges • Acquisition of production facility for Ready-to-eat pr oducts in the Netherlands and acquisition of chicken farms in Lithuania Board of Directors4) Attendance 2025 Name Nationality Indepen dence1) Board Meetings Audit Committee Meetings Remuneration Committee Meetings Authorized fees, SEK2) Shareholdings no of shares3) Johan Bygge Chairman/Committee Chairman Swedish Yes/No 12 4 1,120,000 85,800 Sebastian Backlund Member Swedish Yes/No 12 415,000 7,970 Lars-Gunnar Edh Member Swedish Yes/No 12 415,000 4,500 Øystein Engebretsen Committee member Norwegian Yes/No 12 7 4 545,000 1,720,598 Paulo Gaspar Vice Chairman Portuguese Yes/No 10 570,000 Pia Gideon Committee Chairman Swedish Yes/Yes 12 7 595,000 3,340 Henrik Hjalmarsson Committee Member Swedish Yes/Yes 11 4 455,000 8,000 Cecilia Lannebo Committee member Swedish Yes/Yes 12 7 505,000 522,000 Total 12 7 4 4,620,000 2,352,208 • Investments, financing, cash flow, financial position and insurances • IT and Cybersecurity and EPR system • External risk and risk management Evaluation of the Board’s work The Chairman of the Board is responsible for evaluating the Board’s work on an annual basis with the aim of developing the Board’s forms of working and efficiency. The results of the evaluation are communicated to the Board and reported to the Nomination Committee. In 2025, the Chairman procured an external evaluation of the Board’s work, which was communicated to the Board and reported to the Nomination Committee. Board Committees The Board has established a Risk and Audit Committee and a Remuneration Committee. The work of the committees is mainly of a preparatory and consultative nature, but the Board may delegate decision-making authority to the committees on specific matters. The committees are subordinated to the Board and do not discharge the Board members from their general responsibility and commitment as Board members. The issues considered at the committee meetings shall be recorded in minutes and the minutes shall normally be presented to the Board as information at the Board meeting following the committee meeting along with an oral presentation by the relevant committee chairman. Risk and Audit Committee The main tasks of the Risk and Audit Committee are to monitor Scandi Standard’s financial and sustainability reporting and to make recommenda- tions and suggestions in order to secure the reliability of the reporting as well as to monitor the review of the sustainability report and preparations for the implementation of CSRD and ESRS. The tasks also include to monitor the effectiveness of the Group’s internal control, risk management in general for the business activities, and specifically in relation to the financial and sus- tainability reporting and, if relevant, internal audit. Beyond that the committee must stay informed regarding the external audit of the annual report for the company and the Group, as well as of the results of the Swedish Inspectorate of Auditors’ quality control. As part of this, the Risk and Audit Committee shall inform the Board of the results of the external audit and in what way the external audit has contributed to the reliability of financial and sustainability reporting as well as of the role of the Risk and Audit Committee. 1) Refers to independence in relation to the company and its management, and to the company’s major shareholders controlling, directly or indirectly, ten per cent or more of the shares or votes in the company. 2) Fees exclude travel allowances and include committee work. 3) As of December 31, 2025. Holdings include, when applicable, also holdings by related parties. 4) For more information about the Board members see pages 39-40. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 35
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The Risk and Audit Committee’s tasks also involve to review and monitor the impartiality and independence of the external auditor and in particular pay attention to whether the external auditor has provided other services than auditing, and to assist in preparation of the proposal to the General Meeting regarding election of the external auditor. The Risk and Audit Committee of Scandi Standard shall comprise no fewer than two Board members. The members of the Risk and Audit Committee must not be employed by the company or its subsidiary. At least one of the members must have accounting or auditing proficiency. The members of the Risk and Audit Committee must be independent in relation to the company and the management and at least one of the members must be independent in relation to the company’s major shareholders. The Risk and Audit Committee 2025, after the AGM, comprised the three Board members, Pia Gideon (Chairman), Øystein Engebretsen and Cecilia Lannebo. The Risk and Audit Committee had a total of seven meetings during the year. The company’s CFO, Head of Group Finance and other employees such as the Group CEO, , Group Compliance Manager, Group Strategy & Risk Director and Sustainability Director as well as the external auditor attend meetings when necessary and in accordance with the agenda. The work was primarily focused on: • Year-end report and Annual Report 2024 • Preparation of the Annual Report 2025 • Interim reports 2025 • Critical accounting issues, such as the reporting of Goodwill and intangible assets, valuation of inventory and other issues that could affect the quality of the company’s and the Group’s financial and sustainability reporting • The implementation of CSRD and the double materiality analysis • Disputes and insurance • The group’s risk management framework, annual risk summary and insurance • Internal control plan and follow-up on the internal control implementation • Risk management and internal control, linked to the contr ol environment, processes and the IT environment including information security with a special focus on cyber security • ERP system implementation • Review the efficiency and compliance of the Internal Control Framework over Financial and Sustainability Reporting • Review of internal steering documents • External audit plan and follow-up of the results of the external audit Remuneration Committee The main tasks of the Remuneration Committee include to prepare the Board’s decisions on issues concerning guidelines for remuneration, remuneration and other terms of employment for senior management. The main tasks also include to monitor and evaluate both ongoing and completed programs during the year for variable remuneration for senior management and to monitor and evaluate the application of the guidelines for remuneration that the AGM has established as well as the current remuneration structures and levels in Scandi Standard. The Remuneration Committee’s main task also includes to prepare and submit to the Board no later than the Board meeting in February each year, a remuneration report in accordance with the Swedish Companies Act and the Swedish Code of Corporate Governance and a report on its monitoring and evaluation of the application of ongoing and completed programs for remuneration to senior executives decided by the AGM and current remuneration structures and remuneration levels in Scandi Standard. The Remuneration Committee of Scandi Standard shall comprise no fewer than two Board members. The Chairman of the Board may chair the Committee. The other members are to be independent of Scandi Standard and its senior management. The Remuneration Committee 2025, after the AGM, comprised the three Board members Johan Bygge (Chairman), Øystein Engebretsen and Henrik Hjalmarsson. The Remuneration Committee held a total of four meetings during the year. The Group’s HR and Communications director and other employees such as the Group CEO and the Group CFO attends the meetings when needed and in accordance with the meeting agenda. The work mainly focused on reviewing salary processes for remuneration to senior management, including bonus schemes, as well as preparation of proposal for a long-term incentive programme to be proposed to the AGM 2026. Guidelines for remuneration to senior management Salaries and other terms and conditions of employment in the company and the Group shall be adequate to enable the company and the Group to retain and recruit skilled senior managers at a reasonable cost. The remuneration to the senior managers shall consist of fixed salary, variable salary, pension and other benefits, and it shall be based on principles of performance, competitiveness and fairness. The General Meeting may resolve on long-term incentive programs such as share and share price-related long-term incentive programs for certain key per- sons in the company and in the Group and designed to promote the long-term value growth of the company and the Group and improve alignment between the interests of the participating individuals and the company’s shareholders. The 2025 AGM resolved on a share-related long-term incentive programme 2025 (L TIP 2025), which is consistent with the previous program L TIP 2024 that the Annual General Meeting 2024 decided on. For information about the guidelines for remuneration to senior management and long-term incentive programmes, see Note 5. Whistle-blowing procedure Scandi Standard has a whistle-blowing function, handled by a third party, that makes it possible for employees and other internal and external stakeholders to anonymously report illegal or unethical behaviour that violates the Group’s Code of Conduct. A whistle-blowing policy is in place for the functions operations and to ensure compliance with current and updated sustainability requirements. For further information about the Whistle-blowing function, see the Sustainability report. External auditor Scandi Standard’s external auditor is Öhrlings Pricewaterhouse- Coopers AB (PwC), elected at the AGM 2025 until the end of the AGM 2026, with Linda Corneliusson as the Auditor in charge. Linda Corneliusson has been an authorised public accountant since 2006. She has no involvement in companies related to the principal owners of Scandi Standard or with the management at Scandi Standard. For remuneration to the external auditor, see Note 7. 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Internal control over financial and sustainability reporting1) Internal control over financial and sustainability reporting aims to provide reasonable assurance of the reliability of external financial and sustainability reporting in interim reports, full year reports and annual reports, and to ensure that external financial and sustainability reporting is prepared in accordance with laws, accounting standards and other requirements applicable to listed companies. In order to mitigate risks and to ensure a uniform approach throughout the Group of the procedures for internal control over financial reporting, manage- ment has developed the Scandi Standard Internal Control Framework. The Internal Control Framework aims to mitigate risks in the financial reporting and defines roles and responsibilities and, for all parts of the Group, mandatory controls within e.g., finance, production, warehouse, sales, procurement, payroll and IT. Additional control frameworks over Sustainability reporting and Cyber Security was implemented during the year, in line with CSRD/ESRS and Cyber security/NIS2 requirements, to ensure good data quality and that controls are in place to mitigate risks in these areas. Group Compliance main tasks include to implement, train and follow up on the company´s work regarding internal control. The work has during the year focused on continued support and training of the processes for compliance with the Internal Control Framework over Financial Reporting and to support with establishing the control frameworks over Sustainability reporting and Cyber security. The work to enhance internal control in connection with the implementation of the new ERP system has continued during the year and focused on increased automation and processes to ensure internal control requirements are adhered to. The COSO framework comprises five key components, Control environment, Risk assessment, Control activities, Information and communication and Monitoring activities, that jointly facilitate achieving the objective of reliable financial and sustainability reporting. Scandi Standard´s work within these components is described as follows: Control environment Internal control over financial and sustainability reporting is based on the overall control environment. The control environment has a pervasive impact on the overall system of internal control and risk management for the financial and sustainability reporting. The Board and Group Management establish the tone at the top regarding the importance of internal control including expected standards of conduct of the employees. This involves integrity and ethical values, the parameters enabling the Board to carry out its oversight respon- sibilities, the organizational structure and assignment of responsibility and authority, and the rigor around performance measures, as well as incentives and rewards to drive accountability for performance. The Board is responsible for internal control and risk management, including internal control and risk management related to the financial and sustainability reporting, in accordance with the Swedish Companies Act and the Swedish Corporate Governance Code. This responsibility includes establishing internal steering documents, and monitoring compliance with these, as well as with applicable external laws and regulations. Responsibility and authority are defined by the Board in, among others, internal steering documents such as Instruction for the Managing Director stipulating resolutions that are subject to decision by the Board or the General Meeting of shareholders, authority to sign for the company and Delegated Authorities. The Board also approves, among others, the following internal steering documents: Instruction regarding financial and sustainability reporting to the Board of directors, Code of Conduct, Environmental Policy, Insider Policy, Risk Policy, Competition Policy, Cyber Security policy and Finance Policy. The responsibility for implementing the Board’s internal steering documents regarding internal control and risk management over financial and sustaina- bility reporting, maintaining an effective control environment as well as the day-to-day work on internal control is delegated to the Managing Director. This responsibility is in turn delegated to the country managers and the rest of the Group Management, who is responsible for implementing the annual business plan and targets for the Group. Group Management holds meetings every month to review the monthly results and position, to update plans and to discuss critical business issues. Group Management responsibilities also include to ensure adequate internal control over financial and sustainability reporting and to comply with the Group’s internal steering documents, as well as to identify and report risks that can have an impact on the quality in financial and sustainability reporting and review the financial and sustainability information for reasonableness. Further, every process owner on local and Group level, is responsible to ensure adequate internal control in their area and to ensure that processes are aligned with the regulations stipulated in the Internal Control Framework. The Group’s Compliance Manager is respon- sible to establish, implement and monitor the quality of the company´s work regarding internal control and to report on internal controls matters on the Risk and Audit Committee meetings. The Group CFO reports to the Risk and Audit Committee on the results, critical accounting issues and other issues that could affect the quality of the Group’s financial reporting at the Risk and Audit Committee meetings where the interim reports, Year-end report and annual report are dealt with. When reporting on the quality of the financial reporting, there is particular focus on any critical accounting issues, any; uncertainties in valuations, changes in assumptions and estimates, unadjusted faults in the annual accounts, events after the end of the accounting period as well as the quality of the financial reporting process, the closing process and IT environment. The Chairman of the Risk and Audit Committee reports on the Committee’s work to the Board in the form of observations, recommendations and proposed decisions at the Board meeting following the Committee meetings and in the form of minutes from the Risk and Audit Committee meetings that are submitted to the Board. Risk assessment The Group has a formalised and proactive risk assessment process with clearly established roles and areas of responsibility. The risk assessment process implies that risks and risks related to financial and sustainability reporting should be identified, evaluated, managed and followed-up as an integral part of corporate governance. This is done in order to secure that the Group lives up to the aim of internal control related to financial and sustainabil- ity reporting in an efficient way. In accordance with the risk assessment process, a risk analysis is carried out with a certain periodicity regarding financial and sustainability reporting, which among other things comprises items in the income statement and the balance sheet, and the processes and control activities that are linked to the financial and sustainability reporting, the financial statements and the IT-environment are analysed on the basis of materiality and the risk for errors. For further information about the Group risks and risk management process, see Directors´report. 1) Constitutes part of Scandi Standard’s Sustainability Statement. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 37
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Control activities Risks over financial and sustainability reporting are mitigated through regu- lations and control activities to ensure that the aims for internal control over financial and sustainability reporting are met, which are gathered in each of the Internal Control Frameworks. Control activities are performed at different levels of the Group and its processes including e.g., financial reporting, production, procurement, sales, IT, cyber security, animal welfare, health and safety and product quality. The frameworks are being reviewed annually with feedback from the business and the auditors and to reflect internal and external changes, regulations, steering documents and risks in the operations. The controls are preventive or detective in nature and include a range of manual and automated activities, such as approvals, verifications, recon- ciliations, and monitoring of the business performance. Automated control activities are being established to a greater extent in connection with the implementation of the new ERP system. A distinction between controlling and executing functions, known as the segregation of duties, is typically built into the selection and development of the control activities. Information and Communication Internal steering documents approved by the Board can be accessed on the Group’s intranet by all relevant personnel and by other stakeholders on the company website. Training of critical policies is conducted through mandatory e-learning and in connection with introduction of new employees. New or updated internal steering documents are further communicated as news articles on the intranet, during information meetings and in written correspond- ence and is the responsibility of the appointed policy owner. The internal steering documents are reviewed, updated and approved regularly with reference to for example changes in legislation, accounting standards, listing requirements and internal risk assessments. The Group Compliance Manager is responsible for coordinating the internal work, maintaining the Internal steering documents and to make sure the documents in scope for Board approval are reviewed by the Risk and Audit Committee prior to approval. Monitoring activities Ongoing evaluations, separate evaluations, or a combination of the two are used to ensure internal control is present and functioning. Financial data is reported every month by the reporting units, being a busi- ness unit operating within a subsidiary of the Parent Company, in accordance with the procedure stipulated in the Finance and Accounting Manual and the Internal Control Framework over Financial Reporting. Consolidation of the Group’s financial reports is centralised to the Group Finance function and financial reports are stored in a central database from which data is retrieved for analysis and monitoring. Similarly the sustainability reporting is consoli- dated by Group Sustainability, based on numbers reported in the central data base from each subsidiary or production site. All reporting units that conduct business within one of the company’s sub- sidiaries have a controller whose responsibilities include to ensure adequate internal control concerning financial reporting and to comply with the Group’s internal steering documents such as the Finance and Accounting Manual and the Internal Control Framework. The responsibility also includes reporting complete, accurate and timely financial information to the Parent Company. Self-assessment of compliance with the Internal Control Framework over Financial Reporting was performed during the year by each control owner in the subsidiaries and in the Group functions. In addition, self-assessment of compliance with the Cyber security control framework was performed by the Head of Cyber Security. Each country manager is responsible for the outcome of the self-assessment in the respective area of the company and the head of the respective group function for the outcome at group level. The self-assessment outcome for the Group has been signed-off by the Managing Director. The control owners have implemented action plans from the previous self-assessments and new action plans are being established for ineffective controls, with the aim to further improve and enhance compliance and responsibility. The reliability of the self-assessments is reviewed by the Group Compliance Manager and actions plans are followed up and validated before they are closed. Further, the company’s external auditor annually reviews the status of the company’s internal control over financial and sustainability reporting. The Board is annually evaluating the need for independent review of the company´s processes for internal control and risk management, i.e., internal audit, against the Group’s own control activities, accountability, internal control maturity and the work performed by Group Compliance, which means that the use of internal audit resources differ from year to year. Based on the activities included in the Internal control plan for 2025, the Board decided to appoint no internal auditor for 2025. Stockholm, 18 March 2026 Scandi Standard AB (publ) The Board of Directors ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 38
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Board of Directors1) Øystein Engebretsen Board member Born 1980. BI Norwegian School of Management, Sandvika/Oslo, Master of Science in Business, Major in Finance. Elected 2017. Other assignments: Investment manager, Investment AB Öresund. Previous assignments: Board member of Investment AB Öresund, Insr Insurance Group AS and Projektengagemang Sweden AB, Catena Media P.L.C. Project mana - ger, Viking Sverige AB. Corporate Finance, HQ Bank. Shareholding in Scandi Standard: 1,720,598 shares. Employed by Öresund AB, holding more the 15 per cent of the shares in Scandi Standard. Johan Bygge Chairman of the board Born 1956. MSc in Business and Economics, Stockholm School of Economics. Elected 2021. Other assignments: Chairman of the board of Guard Therapeutics Inter- national AB, Arevo AB, Regin AB and Q-linea AB. Vice Chairman Tredje AP-fonden, Board member of Getinge AB, Capman Oyj, Lantmännen EK För, Riksbankens Jubileumsfond. Previous assignments: Johan Bygge has extensive experience of board work in listed and unlisted companies. Johan Bygge has also been deputy CEO of Electrolux, COO of EQT AB, CFO of Investor AB and Chairman of the board of Yangi AB. Shareholding in Scandi Standard: 85,800 shares. In February 2024, Johan Bygge also acquired a four-year call option from Investment AB Öresund, which gives him the right to acquire 200,000 Scandi Standard shares for SEK 85 per share. Sebastian Backlund Board member Born 1990. Master of Science in Finance, School of Business, Economics and Law at the University of Gothenburg. Bachelor of Science in Economics, Francis Marion University, USA. Elected 2024. Other assignments: Investment manager at Investment AB Öresund and board member Q-linea AB. Previous assignments: Broad experience of investment issues, corporate finance and mergers and acquisitions from EY, MedCap and Investment AB Öresund. Shareholding in Scandi Standard: 7,970 shares. Employed by Öresund AB, holding more the 15 per cent of the shares in Scandi Standard. Lars-Gunnar Edh Board member Born 1969. M.Sc. in Mechanical Engineering, Chalmers University of technology. Elected 2024. Other assignments: Head of Lant - männen Lantbruk. Board member of Scandagra Polska and Scandagra Group. Previous assignments: Broad experience from the manufacturing industry and energy sector through senior positions at Saab Auto- mobiles/GM, Assa Abloy and Lantmännen. Head of Energy Division Lantmännen. Board member of Drivkraft Sverige AB and SimSuFoodS AB. Shareholding in Scandi Standard: 4,500 shares. Employed by Lantmännen Lantbruk AB, part of Lantmännen Animalie- invest AB holding more than 10 per cent of the shares in Scandi Standard. Pia Gideon Board member Born 1954. MSc in Economics, Stockholm School of Economics. Elected 2022. Other assignments: Board member Devyser Diagnostics AB. Previous assignments: Include Chairman of the board of Klövern AB, board member of Proact, MinDoktor.se, Metria, ActionAid Sweden, Guard Therapeutics International AB (publ), Qlucore AB (publ) and Apoteket AB. Held leading positions within the Erics - son group. Worked as a financial journalist and columnist in Veckans Affärer and Dagens Industri. Shareholding in Scandi Standard: 3,340 shares. Paulo Gaspar Board member, vice chairman of the board Born 1987. MSc in Entrepreneurship at Regent’s University, Bachelor in Management at Nova School of Business and Exponential technologies graduate studies at Singularity University. Elected 2022. Other assignments: Vice-President of Grupo Lusiaves SGPS Vice- president Media Capital, chaiman at Casper Ventures, CEO at BRAINR. Previous assignments: Associate at Hoxton Ventures. Founder of Funnyhow ad Agency. CIO and CMO at Grupo Lusiaves SGPS. Shareholding in Scandi Standard: 0 shares. Shareholders of Grupo Lusiaves SGPS, which holds more than 15 per cent of the shares in Scandi Standard. 1) Constitutes part of Scandi Standard’s Sustainability Statement. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 39
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Cecilia Lannebo Board member Born 1973. MSc in Business and Economics with a major in International Marketing from Mälardalen University and Wirtschaftsuniversität Wien. Elected 2021. Other assignments: Founder and CEO of i-Core Communications AB. Board member and chairman of the risk and audit committee Boozt AB. Board member Djurgården Fotboll and chairman of Föreningen Djurgården Skola Stad. Previous assignments: Over 25 years of work experience from capital markets, as an analyst within the retail and services sector and seven years as responsible for investor relations in listed companies. Shareholding in Scandi Standard: 522,000 shares. Henrik Hjalmarsson Board member Born 1976. Master of Science in Mechanical Engineering and Technology Management, University of Lund, Sweden. Elected 2020. Other assignments: President & CEO of Midsona AB (publ). Chair - man of the board of Repasco AB. Previous assignments: CEO and other leading positions at Findus, Nomad Foods, OptiGroup AB and Inwido AB (publ). Shareholding in Scandi Standard: 8,000 shares. EXTERNAL AUDITOR Öhrlings PricewaterhouseCoopers AB. Linda Corneliusson, Authorised Public Accountant, born 1974, chief auditor. OTHER ASSIGNMENTS Principal auditor, among others, for Martin&Servera, Stora Enso and Green Cargo. All shareholdings reported as per 31 December 2025. When applicable, holdings in Scandi Standard includes also holdings by related parties. Board of Directors, cont. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 40
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Group Management Jonas Tunestål Managing Director & CEO Born 1979. Executive MBA from University of Lund. In Group Management since 2022. Previous assignments: Having spent his entire career at KLS Ugglarps in a number of different positions, Jonas has extensive experience in the meat industry. Jonas was for many years CEO of Ugglarps and belonged to Danish Crown’s management team. Shareholding in Scandi Standard: 142,630 shares. In February 2024, Jonas Tunestål also acquired a four-year call option from Investment AB Öresund, which gives him the right to acquire 200,000 Scandi Standard shares for SEK 85 per share. Ida Ljungkvist Group Sustainability Director Born 1985. Master of Science in Civil and Environmental Engineering and Master of Science in Industrial Ecology from Chalmers University of Technology. In Group Management since 2022. Principle work experience: Sustainability advisory and project management at KPMG AB, Head of Sustainability Application and Operations at RobecoSAM AG. Shareholding in Scandi Standard: 2,641 shares. Samir Törnblad Group HR & Communication Director Born 1972. Master’s degree in Behavioral Science, University of Gothenburg. In Group Management since 2023. Previous assignments: Head of HR at TV4 and Bonnier Broadcasting. Shareholding in Scandi Standard: 4,611 shares. Henrik Kjær Group Supply Chain Director Born 1976. Management education in Danish army, Driller/Machinist, MBA. In Group Management since 2022. Previous assignments: Extensive experience from the meat industry, having spent most of his career within Chicken supply chain in a number of different manage - ment positions. Shareholding in Scandi Standard: 18 217 shares. Fredrik Strømmen COO, Country manager Norway Born 1971. Master of Science, Norwegian School of Economics, Norway. In Group Management since 2015. Other major assignments: Board member in DLF Norway. COO Home Markets. Previous assignments: CEO, Orkla Commercial Excellence ASA. CEO and Country manager, Sætre AS. Management positions within Sætre AS and KiMs AS. Vice-chairman of the Board in Animalia, board member KLF. Shareholding in Scandi Standard: 77,430 shares. Fredrik Sylwan Chief Financial Officer, CFO Born 1978. Master of Science in Business Administration, Major in Finance (Stockholm Business School), and Master of Science in Chemical Engineering (Royal Institute of Technology) as well as Military Academy. In Group Management since 2024. Previous assignments: CFO Perrigo Northern Cluster, Vice President Finance and Strategy at Swedish Match North Europe, Management Consultant at Accenture, HQ Bank. Shareholding in Scandi Standard: 5,323 shares. All shareholdings reported as per 31 December 2025. When applicable, holdings in Scandi Standard includes also holdings by related parties. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 41
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Auditor’s report on the Corporate Governance Statement Unofficial translation To the Annual General Meeting of the shareholders in Scandi Standard AB (publ), corporate identity number 556921−0627 Engagement and responsibility We have audited the corporate governance statement for the year 2025 on pages 31–41. It is the board of directors who is responsible for the corporate governance statement and that it has been prepared in accordance with the Annual Accounts Act. Our responsibility is to express an opinion on the corporate governance statement based on our audit. The scope of the audit We conducted our audit in accordance with FAR's standard RevR 16 The auditor’s examination of the corporate governance statement . That standard requires that we have planned and performed the audit to obtain reasonable assurance that the corporate governance statement is free of material misstatements. An audit includes examining, on a test basis, evidence supporting the information included in the corporate governance statement. We believe that our audit procedures provide a reasonable basis for our opinions. Opinions A corporate governance statement has been prepared. It is consistent with the annual accounts and the consolidated accounts and is in accordance with the Annual Accounts Act. Stockholm, 19 March 2026 Öhrlings PricewaterhouseCoopers AB Linda Corneliusson Authorised Public Accountant This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 42
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Scandi Standard Annual and Sustainability Report 2025 | 43ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Group overview, results and financial position 44 Risk and risk management 47 Sustainability Statement 51 DIRECTORS´REPORT Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 44 Group overview, results and financial position Key figures MSEK 2025 2024 Net sales 14,083 13,024 EBITDA 1,047 931 Operating income (EBIT) 603 509 Non-comparable items 1) – – Adjusted EBITDA 1) 1,047 931 Adjusted operating income (adj. EBIT)1) 603 509 Income after finance net 452 354 Income for the year 367 275 Earnings per share, SEK 5.61 4.20 Dividend, SEK 3.302) 2.50 Operating cash flow 243 443 Net interest-bearing debt 2,032 1,935 Chicken processed (tonne gw) 300,670 279,868 EBIT/kg 2.00 1.82 % 2025 2024 EBITDA-margin 7.4 7.1 Operating margin (EBIT-margin) 4.3 3.9 Adjusted EBITDA-margin1) 7.4 7.1 Adjusted operating margin (adj. EBIT-margin)1) 4.3 3.9 Return on capital employed (ROCE)1) 12.5 11.8 Return on equity 13.9 11.0 Equity ratio 35.0 35.9 Average number of employees 3,670 3,366 1) For the non-comparable items, see page 144. 2) Proposed by the Board to the Annual General Meeting 2026. The Board of Directors and President of Scandi Standard AB (publ), identity number 556921-0627, with registered office in Stockholm, Sweden, herewith submit the annual report and consolidated accounts for the 2025 financial year. • Net sales amounted to MSEK 14,083 (13,024) in the year of 2025. At constant exchange rates net sales increased by 11 per cent. • Operating income (EBIT) increased to MSEK 603 (509), corresponding to a margin of 4.3 (3.9) per cent. No non-comparable items were reported in the period. • Income after finance net increased to MSEK 452 (354). • Income for the period amounted to MSEK 367 (275). Earnings per share amounted to SEK 5.61 (4.20). • Operating cash flow was MSEK 243 (443). • Net interest-bearing debt increased to MSEK 2,032 (1,935) • The Board proposes a dividend for the financial year 2025 of SEK 3.30 (2.50) per share which corresponds to MSEK 216 (163) to the Annual General Meeting 2026 based on the number of outstanding shares as of December 31, 2025. Net sales and income Net sales Net sales for the Group amounted to MSEK 14,083 (13,024) in the year of 2025. At constant exchange rates net sales increased by 11 per cent. Net sales for the Ready-to-cook segment, which is the largest segment, increased by 11 per cent in constant currency, while net sales for the Ready-to-eat segment increased by 10 per cent in constant currency. The change in sales for the Ready-to-cook segment was primarily driven by sales mix and the full year impact of the addition of Lithuania, while for the Ready-to-eat segment it was primarily driven by pricing. See page 113 for further information on segments. Income Operating income for the Group amounted to MSEK 603 (509) for 2025, corresponding to an operating margin (EBIT margin) of 4.3 (3.9) per cent. The operating income in the Ready-to-cook segment was MSEK 487 (368), which represents material growth driven by increased sales and positive effects from investments to increase capacity and production efficiency. The operating income in the Ready-to-eat segment decreased to MSEK 97 (148), due to increased raw material costs and start-up costs in the acquired plant in the Netherlands. For Other operations, the result increased compared to the previous year, due to higher market prices in the Ingredients business. The finance net for the Group amounted to MSEK –150 (–155) for 2025. One-off costs of -6 MSEK during 2024 for refinancing account for part of the change compared to previous year. Income after finance net for the Group amounted to MSEK 452 (354) for 2025. Tax on the Group’s income for the year amounted to MSEK –86 (–80) for 2025, corresponding to an effective tax rate of 19 (23) per cent. This year’s low tax rate is explained by the combination of tax rates across the different countries, as well as the high utilization of previously non-deductible net interest in Sweden. Income for the year for the Group amounted to MSEK 367 (275) for 2025, corresponding to earnings per share of SEK 5.61 (4.20). Cash flow and investments Operating cash flow for the Group in 2025 amounted to MSEK 243 (443), positively affected by strengthened EBITDA and improved working capital but negatively impacted by increased net capital expenditures during the period, driven by the acquisition of poultry farms in Lithuania and the acquisition of a new production plant in Netherlands. Working capital as of 31 December 2025 amounted to MSEK –169 (–135), corresponding to –1.2 (–1.0) per cent of net sales. The improvement in working capital compared to the previous year can mainly be attributed to an increase in accrued customer rebates and accrued personnel costs. Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 45 Change in net interest-bearing debt (NIBD) MSEK 2025 2024 Opening balance net interest-bearing debt 1,935 1,571 EBITDA 1,047 931 Change in working capital 31 –62 Net capital expenditure –783 –367 Other operating items –52 –59 Operating cash flow 243 443 Paid finance items, net –146 –157 Paid income tax –80 –79 Dividend –163 –150 Acquisition –16 –453 Other1) 66 33 Decrease (+) / increase (–) of NIBD –97 –364 Closing balance net interest-bearing debt 2,032 1,935 1) Other items mainly consist of effects from changes in foreign exchange rates and net change of leasing assets. Segment information Segment Ready-to-cook MSEK 2025 2024 Change Net sales 10,783 9,923 9% EBITDA 841 707 19% Operating income (EBIT) 487 368 32% Non-comparable items1) − − − Adjusted EBITDA1) 841 707 19% Adjusted operating income (adj. EBIT)1) 487 368 32% EBITDA-margin1) 7.8% 7.1% 0.7ppt Operating margin (EBIT-margin) 4.5% 3.7% 0.8ppt Adjusted EBITDA-margin1) 7.8% 7.1% 0.7ppt Adjusted operating margin (EBIT-margin) 1) 4.5% 3.7% 0.8ppt 1) For the non-comparable items, see page 144. Segment Ready-to-eat MSEK 2025 2024 Change Net sales 2,784 2,601 7% EBITDA 163 206 −21% Operating income (EBIT) 97 148 −34% Non-comparable items1) − − − Adjusted EBITDA1) 163 206 −21% Adjusted operating income (adj. EBIT)1) 97 148 −34% EBITDA-margin1) 5.9% 7.9% −2.0ppt Operating margin (EBIT-margin) 3.5% 5.7% −2.2ppt Adjusted EBITDA-margin1) 5.9% 7.9% −2.0ppt Adjusted operating margin (adj. EBIT-margin)1) 3.5% 5.7% −2.2ppt 1) For the non-comparable items, see page 144. Capital expenditure Net capital expenditure for the Group in 2025 amounted to MSEK 783 (367) and excluding the acquisitions in the Netherlands and Lithuania, net capital expenditures amounted to MSEK 447. A significant portion is related to increasing efficiency and capacity within Ready-to-cook, as well as activities in the Netherlands linked to the start-up of the Ready-to-eat plant. Of the net capital expenditure that excludes the acquisitions in the Netherlands and Lithuania, approximately 86 (78) per cent of the capital expenditure referred to productivity and capacity improvement measures and approximately 14 (22) per cent to maintenance. Financial position Equity attributable to the parent company as of 31 December 2025 amounted to MSEK 2,677 (2,611). The equity to assets ratio was 35.0 (35.9) per cent. Return on Equity was 13.9 (11.0) per cent. Net interest-bearing debt for the Group as of 31 December 2025 amounted to MSEK 2,032 (1,935) which was an increase of MSEK 97 compared to previous year. Net interest-bearing debt/adjusted EBITDA as of 31 December 2025, was 1.9 (2.1) per cent. Cash and cash equivalents for the Group amounted to MSEK 279 (109) as of 31 December 2025, which was an increase compared with previous year. Committed but not utilized credit facilities as of 31 December 2025 amounted to MSEK 1,300 (1,860). Segment Ready-to-cook Net sales for the segment Ready-to-cook (RTC) amounted to MSEK 10,783 (9,923) which was an increase with 11 per cent in constant currency compared with previous year. The increase was driven by increased volumes and positive price and mix effects across multiple countries and channels, as well as by the full year impact of the addition of Lithuania. Net sales for chilled increased by 10 per cent in constant currency compared with previous year while frozen products increased by 3 per cent. Net sales in the Retail sales channel increased by 5 per cent while Food- service sales channel decreased with 1 per cent. Net sales to Export sales channel increased by 56 per cent. Operating income increased by 32 per cent to MSEK 487 (368), correspond- ing to a margin of 4.5 (3.7) per cent. No non-comparable items were reported in 2025. Segment Ready-to-eat Net sales for the segment Ready-to-eat (RTE) amounted to MSEK 2,784 (2,601) which was an increase of 10 per cent in constant currency compared with previous year. The increase was mainly related to a recovery within the Foodservice channel driven by increased demand. Net sales increased in the Foodservice sales channel with 7 per cent and increased with 11 per cent in the Retail sales channel. Net sales to Export sales channel increased by 4 per cent and increased by 1 per cent in Industry and other. Operating income decreased to MSEK 97 (148), corresponding to a margin of 3.5 (5.7) per cent. Operating income was negatively affected by increased raw material costs, with price adjustments to customers occurring gradually over the year and into 2026. Start-up costs of the newly acquired processing plant in the Netherlands also negatively impacted operating income. No non-comparable items were reported during 2025. Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 46 Segment Other Segment Other consists of ingredients and group charges. Ingredients are by-products mainly for non-human consumption, and mainly used for industrial production of animal feed and other applications. This is in line with Scandi Standard’s ambition to utilize the animal entirely, as it reduces production waste to almost zero and contributes to a lower carbon footprint. No individual part of Other is significant enough in size to constitute its own segment. Net sales within Ingredients amounted to MSEK 516 (499) with an operating income (EBIT) of MSEK 58 (32). The increase in operating income was mainly driven by higher volume and normalization of prices. Group costs of MSEK –39 (–38) were recognised in the Group operating income (EBIT). No non-comparable items were reported during 2025. Acquisition and divestment of operations The acquisitions of six poultry farms in Lithuania and production facility in Netherlands during 2025 was recognised as asset deals and disclosed under Note 12. No acquisitions or divestments during the year were recognised as Business combinations. During previous year Scandi Standard acquired an integrated state-of-the-art poultry processor in Lithuania, see Note 28 for more details. The Scandi Standard share As of 31 December 2025, the share capital in Scandi Standard AB (publ) amounted to SEK 659,663 (659,663), comprising 66,060,890 (66,060,890) shares with a quota value of SEK 0.009986 (0.009986) per share. Each share carries one vote. All shares have equal rights to the company’s assets and profits. There are no restrictions on the transfer of shares, voting rights or the right to participate in the Annual General Meeting, nor is the company party to any significant agreements which might be affected, changed or terminated if con- trol of the company were to change as a result of a public bid for acquisition of shares in the company, with the exception of the Group’s financing agreement. The company is not aware of any agreements between share- holders which might limit the right to transfer shares. In addition, there are no stipulations in the Articles of Association regarding appointment or dismissal of Board mem- bers or agreements between the company and Board members or employees which require remuneration if such persons leave their posts, or if employment is terminated as a result of a public bid to acquire shares in the company. As of 31 December 2025, the three largest shareholders were Euroclear Bank S.A/N.V, W8-IMY (trustee account to Grupo Lusiaves), Investment AB Öresund and Lantmännen Animalieinvest AB with a holding in the company corresponding to 21.3, 15.3 and 10.6 per cent of the share capital respectively. For information on major shareholders, see page 19. Corporate Governance report In accordance with the Annual Accounts Act, Chapter 6, 11§, Scandi Standard has chosen to prepare the statutory Corporate Governance Report separated from the statutory Annual Report. The Corporate Governance Report is stated on page 32. Personnel The average number of employees (FTE) in 2025 was 3,670 (3,366), see Note 5. Annual General Meeting 2026 The Annual General Meeting (AGM) 2026 will be held on 28 April at 7A Posthuset, Vasagatan 28 in Stockholm, Sweden. More information about the AGM is available on: www.investors.scandistandard.com/en/general-meeting. Proposed appropriation of earnings The Board proposes a dividend for the financial year 2025 of SEK 3.30 (2.50) per share which corresponds to MSEK 216 (163) to the Annual General Meeting 2026 based on the number of outstanding shares as of December 31, 2025 except for shares that are expected to be held by the Company itself on the record date for the dividend. The proposed dividend corresponds to approximately 59 (59) per cent of income for the year adjusted for non-comparable items. The company’s dividend policy is to distribute a dividend of approximately 60 per cent of income for the year, adjusted for non-comparable items, on average over time. The dividend shall be determined taking into account the requirements that the company’s and the Group’s operations type, scope and risks impose on the size of the company’s and the Group’s equity and the investment requirements of the company and the Group. The Board proposes that the remaining funds will be carried forward. SEK 2025 2024 Share premium reserve 256,317,255 419,777,147 Accumulated surplus/deficit 590,264,539 390,757,221 Income for the year 177,115,159 199,507,318 Total 1,023,696,953 1,010,014,686 Dividend to shareholders of SEK 3.30 (2.50) per share 216,954,472 163,317,910 To be carried forward 807,742,481 846,726,776 Total 1,023,696,953 1,010,014,686 Significant events during the financial year Scandi Standard acquired in January 2025 a production facility in Oosterwolde, Netherlands from Tyson Foods. The facility has two of Europe’s largest and most efficient product lines for Ready-to-eat products. In April 2025 Scandi Standard acquired six poultry farms in Lithuania amounted to approx. MSEK 200. Through the acquisition, Scandi Standard’s Lithuanian business will become self-sufficient in bird supply. Events after the end of the period No significant events after the end of the period. Proposal regarding guidelines for remuneration to senior management The 2025 Annual General Meeting approved the latest guidelines for remunera- tion to senior management. For the Annual General Meeting 2026, no changes have been proposed. Read more in Note 5 for the latest approved guidelines for remuneration to senior management. For information on remuneration Committees work, see page 36 in Corporate governance report. Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 47 Strong stakeholder trust is critical to achieving Scandi Standard’s financial, operational and sustainability-related targets. This includes customers, owners, employees, growers, creditors, regulators and society at large. To maintain and strengthen this trust, Scandi Standard has established a comprehensive risk management framework that facilitates systematic identification, assessment and management of risks throughout the business. Enterprise Risk Management Framework Scandi Standards overall infrastructure is integral to the risk management framework and supports the work to achieve adopted goals. Internal gover- nance ess decisions and ensure effective governance and control of the business. Much emphasis is placed on maintaining a risk culture with clear roles, systematic follow-up and regular communication about risks. External risks include, for example, cyber security risks, market risks, political risks and nature-related risks, all of which are dynamic and require continuous monitoring. Internal risks include, for example, operational, cultural and reporting risks. These are managed through Scandi Standard’s control systems, Code of Conduct and internal governance documents, which guide day-to-day business decisions. Regular reviews of strategies, preparedness for unforeseen disrup- tions and insurance are highly relevant. In addition, risk minimisation must be incorporated in the daily work, and the Code of Conduct and governing documents must be fully implemented through continuous training, strength- ening of the risk culture, continuous risk assessment, governance and control frameworks. Scandi Standard has eight interconnected control frameworks covering health and safety, animal welfare, food safety, machinery mainte- nance, cyber security, financial reporting and sustainability reporting. These frameworks are designed to mitigate risks and ensure a consistent approach to internal control across the company. The control frameworks for financial reporting and cyber security include an established self-assessment process for each individual with control responsibility. For more information on Internal Control, see the Corporate Governance Report on pages 37–38. Risk tolerance A company needs to have a structured approach to its risks, and risks can be accepted based on materiality and priority. For policies in the areas of food safety, employee safety, animal welfare and general legal regulations, the Group has zero tolerance for deviations. If anomalies are identified, processes must be improved. Scandi Standard closely monitors regulatory developments affecting its operations. Scandi Standard accepts moderate market risks to support innovation and maintain market leadership, but overall the Group has a low risk tolerance. A formalised investment process guides decisions regarding acquisitions or other major investments that require external financing. The risk tolerance related to operational efficiency and production efficiency is low, as disruptions to operations quickly create challenges in managing planned volumes. Insurance as a risk management tool Scandi Standard has insurance policies regarding its operations and assets to the extent that applies typically to companies engaged in similar operations. Our insurance strategy entails maintaining close relationships with our insur- ance partners based on transparency, knowledge sharing and mutual trust. Risk and risk management 1. Currency risks and transaction risks 2. Financing risks and credit risks 3. Commercial and market-related risks 4. Regulatory and political risks 5. Operational and supply chain risks 6. Climate- and nature-related risks 7. Culture and skills supply risks 8. IT and cyber security risks IMPACT 5 4 3 2 1 1 2 3 4 5 LIKELIHOOD Infrastructure • Corporate governance • Internal steering documents • Responsibilities • Culture Business strategy process • Long-term business planning • Double materiality assessment and sustainability due diligence • Annual risk review • Business contingency review • Insurance review Manage external risk Manage internal risk Business Targets Impact and likelihood of reported risks 1 2 3 4 5 6 7 8 Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 48 The Group’s central finance function manages financial risks based on the finance policy adopted by the Board of Directors and the risk policies for each country. Each quarter, the treasury function reports on the status and outlook of the Group’s foreign exchange and interest rate risk exposures to the Board. Sensitivity analysis A sensitivity analysis of key factors affecting the Group’s financial performance is presented in the table below. The study is based on data as of 31 December 2025, assuming that all other influencing factors are unchanged. Sensitivity analysis as of 31 December 2025 1) MSEK Estimated impact on operating income In the event of a change of +/–1% on an annual basis Average sale price 141 (130) Cost of goods sold 118 (111) In the event of a change in exchange rates against SEK by +/–5% DKK 2 (1) NOK 11 (12) EUR 10 (1) 1) Figures in parentheses refer to previous year. A complete description of the Group’s financial risks can be found in Note 22. More information on legislation, rules and internal steering policies is presented in the Corporate Governance Report on page 32. A description of the Group’s internal control over financial reporting and sustainability reporting can be found in the Corporate Governance Report on page 37. Financial risks Currency risks and transaction risks Description Currency risks occur in connection with purchases of input goods, export sales and transactions within the Group. The Group’s business is primarily conducted in local markets and in local currencies. Transaction exposure relates primarily to export sales. The translation exposure is the effect of exchange rate fluctuations when foreign subsidiaries’ income statements and balance sheets in DKK, NOK and EUR are translated into SEK. Risk mitigation measures • The Group partially mitigates currency risk by taking out loans in the reporting currencies of its subsidiaries. • Major purchases over MSEK 1 are currency hedged. • A strategic review of currency hedging in relation to equity in foreign subsidiaries is conducted on a regular basis. Activities in 2025 The Swedish krona appreciated in 2025. As a result, profit is lower, but so is the level of debt on loans denominated in foreign currencies. In 2025, Scandi Standard expanded production in Lithuania and the Netherlands, resulting in increased use of the Euro. This opens opportunities to expand our customer base within the Euro area and in international markets. Financing risks and credit risks Description Interest-bearing liabilities expose the Group to interest rate risks, i.e., changes in market interest rates that can hurt financial results and cash flow. Credit and counterparty risk includes the risk that a counter- party to a transaction cannot meet its obligations. There is also a risk that financing could become unavailable or much more expensive when loans are refinanced, depending on market conditions. Risk mitigation measures • A balanced combination of variable and fixed interest rates manages interest rate risk. • Credit risk is mitigated by only accepting counterparties with high credit ratings and by entering into ISDA agreements2) for derivative instruments. • Financing risk is mitigated through a well-diversified group of counterparties, a long average capital maturity and committed, undrawn credit facilities. Activities in 2025 Interest rates have declined and factoring costs have decreased. The reporting process has been improved through clearer follow-up of risk exposures. During 2025, several interest swap agreements were signed, which significantly extended the Group’s interest fixing. As of 31 December 2025, the Group’s outstanding liabilities to lenders, including outstanding interest rate swaps, had a weighted average maturity of 25 (4) months. As of 31 December 2025, the weighted average maturity of liabilities to credit institutions was 4 (5) years. For more information, see Note 22. 2) An International Swaps and Derivatives Association Master Agreement (ISDA) is a standardised master agreement used to settle complex derivatives transactions. Risk materiality: Very low Low Moderate High Very high Risk trend: Stable Rising Falling Risk materiality: Risk trend: Risk materiality: Risk trend: Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 49 Strategic and operational risks Commercial and market-related risks Description New trends in health, animal welfare and climate change, together with changes in retail marketing, impact demand for the Group’s products. The Group is also affected by changes in export prices and costs for feed, energy and packaging. Sufficient chicken volumes are critical to continued growth. Retail is dominated by large players, which creates concentration risks. However, this risk is mitigated by demand for locally sourced raw materials and the gradual increase in national production capacity. The same demand pattern applies to the restaurant and public sectors. Risk mitigation measures • Proactive management of annual customer negotiations. • Market research and product de velopment are used to respond to trends and to market chicken as a preferred protein choice. • Flexibility is achieved through fr ozen product options and balanced export flows. • Close collaboration with suppliers helps manage cost fluctuations. • Internal planning and forecasting occurs throughout the value chain. • Internal controls are applied to prices, payment terms, discounts and credits. Activities in 2025 The new organisation with Scandi International and Home Markets has increased our coordination capacity and ability to balance internal resources with market needs. Investing in shared IT platforms enhances our ability to communicate between markets. The grocery trade in Norway decided to replace the current broiler breed with a slow growing breed, which requires more rearing space and increases the per kilogram cost of chicken. The cost increases have been approved as add-ons to existing contracts. With higher food prices, the importance of fixed product prices has increased and Kronfågel has therefore invested to move away from variable product weights during 2024–2025. Geographic expansion spreads market risk while enabling a broader product range higher delivery reliability. Regulatory and political risks Description The risks relate to regulatory compliance across several jurisdictions, as well as to risks associated with developments in the political and geopolitical landscape. This encompasses climate-related regulations as well as regulatory requirements concerning occupational health and safety, security, environmental protection and animal welfare. Breaches in compliance could impact the Group’s reputation, legal standing and trust among stakeholders. Risk mitigation measures • Active monitoring of regulatory changes, frequently thr ough trade organisations. • Certification of production plants as per global standards. • Managing sustainability risks through, for example, codes of conduct, supplier audits and whistle-blowing systems. • Regular reviews of regulatory compliance and sustainability results. • Basic anti-corruption training for all employees, complemented by more in-depth anti-corruption and ethics training for those in high-risk roles. Activities in 2025 Much effort during the year has been devoted to compliance with EU regulations in areas such as sustainability reporting, climate, packaging, animal welfare and deforestation. The price of soy is expected to rise as a result of implementation of the EU Deforestation Regulation, effective from 31 December 2025. The cost will be passed on to our customers, in line with how this is being handled by other protein producers using feed soy. The company is developing alternative feed solutions in several markets to partially replace soy with local protein sources. In early 2025, Swedish chicken producers, together with Svensk Fågel, entered into an agreement on mutual support for slaughtering in the event of a crisis, partly in response to the authorities’ review of national food security. The escalation of a potential trade conflict between the EU and the United States has had minimal impact on the Group’s predomi- nantly local operations. Operational and supply chain risks Description The risks include disruptions to production or the supply chain, including processes related to safety, quality and animal welfare. Other potential risks are insurance limitations, inadequate crisis management and risks associated with investments or acquisitions. The quality of birds from rearing is a key factor that is continuously monitored, including by veteri- narians appointed by the authorities. Unexpected deviations could occur, since hatching and rearing are often conducted by external parties. Inadequate perimeter security, fire protection, or machinery main- tenance could result in risks to personnel or production disruptions. Furthermore, inadequate hygiene routines, temperature controls, bacterial analysis, or traceability could give rise to operational interruptions, regulatory enforcement actions, or reduced customer trust. Risk mitigation measures • Strict control systems in areas such as food safety, personnel safety, cyber security, sustainability, fire protection and machinery maintenance, inventory, stock adjustment and waste management. • Planned and unplanned audits from authorities, customers, certification bodies, suppliers and insurance companies. • Code of Conduct, along with monitoring and audits of suppliers. • Systematic and continuous process impro vement. • Procurement of insurance with experienced insurance brokers. • Crisis management procedures and contingency plans. Activities in 2025 Scandi Standard has invested in its own rearing to ensure the quality of live animals. Investments in expanded RTE capacity in the Netherlands, alongside Denmark, strengthens resilience to operational disruptions. The Group is also investing in improved fire protection. Improvement programmes implemented over several years continue to have a positive impact, particularly in Sweden, Denmark and Ireland, contributing to lower complexity and a better working environment. Risk materiality: Risk trend: Risk materiality: Risk trend: Risk materiality: Risk trend: Group overview, results and financial position Risk and risk management Sustainability Statement
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ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 50 Climate and nature-related risks Description The Group is vulnerable to disease outbreaks such as bird flu and salmonella, as well as to physical climate risks. These include extreme weather events that could affect food safety, feed production and logistics, as well as pandemics that could disrupt operations and demand. These risks could lead to trade restrictions, production disruptions and reputational damage. Climate-related risks, including scenario analysis, are presented on pages 62–66. Risk mitigation measures • Climate adaptation strategies and science-based climate targets. • Implementation of ISO 14001 at all major plants is ongoing. • Strict animal health and welfare protocols across all markets. • Systems for disease prevention and contingency planning. • Insurance against the most common diseases for all flocks reared under own management in Sweden and Lithuania. Activities in 2025 Scandi Standard has published its first climate transition plan, which includes information on strategy, governance, financing and an action plan for reaching the climate targets. The implementation of ISO 14001 requires local analysis of climate and nature-related risks. This makes it possible to identify and implement any adaptations required at the local level. For example, we are upgrading refrigeration capacity in production in order to handle larger volumes in Lithuania and Sweden. Doing so offers a higher level of food safety during heatwaves. A control framework for sustainability reporting was implemented in 2025 aimed at mitigating risks, ensuring good data quality and compliance with regulatory requirements. Culture and skills supply risks Description The risks are linked to leadership quality, employee engagement and corporate culture. Weaknesses in the corporate culture could lead to high staff turnover or difficulties in attracting and retaining talent. Many production plants are located far from major cities, which makes it difficult to recruit production staff, specialists and managers. Growth through acquisitions and organic expansion requires employees with strong strategic expertise. It also depends on close collaboration across geographically dispersed operations throughout the value chain. Risk mitigation measures • Leadership development and onboarding. • Annual employee surveys and targeted follow-up. • Structured goals and skills development for employees. • Succession planning and internal communication to strengthen the corporate culture. • Whistle-blowing function. Activities in 2025 Scandi Standard’s leadership programme has established a common foundation for how we lead and develop the business. In parallel, the shared HR platform has increased transparency and created a clearer structure for goal-setting and development processes. The reorgani- sation completed during the year has already improved our ability to act more quickly and in a more unified way in developing our domestic markets and expanding internationally. It also supports stronger control and efficiency in primary production. Group management works in a structured manner with succession planning, overarching project governance and skills supply in connection with major changes. IT and cyber security risks Description The Group is exposed to risks related to information security, data breaches and failure of critical IT systems. This could lead to production stoppages, inaccurate reporting, negative publicity and delayed or incorrect decision-making due to unclear roles and responsibilities in IT governance. Risk mitigation measures • IT security policies and governance routines for system changes. • Control procedures to prevent unauthorised access and operational disturbances. • Clear roles and responsibilities for IT systems that facilitate rapid response. • Measures to ensure reporting accur acy and operational continuity. • Ongoing training and crisis exercises related t o cyber security. Activities in 2025 The launch of a user-centric cyber security awareness programme started in 2025 and will continue in 2026. This includes phishing simula- tions, training initiatives and extensive communication efforts. Enhanced solutions are being implemented for Privileged Access Management (PAM), remote access control and Intrusion Detection and Prevention System (IDS/IPS) at our key production plants, providing real-time protection against network and infrastructure threats. Further improve- ments to network segmentation at our production plants are also underway. Business continuity exercises for cyberattack scenarios will be conducted for management teams in all markets during 2025–2026. A control framework for cyber security was implemented in 2025 aimed at mitigating risks and ensuring compliance with NIS2. For more infor- mation, see the corporate governance report. Risk materiality: Risk trend: Risk materiality: Risk trend: Risk materiality: Risk trend: Group overview, results and financial position Risk and risk management Sustainability Statement
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SUSTAINABILITY STATEMENT ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 51 General disclosures 52 About the Sustainability Statement 52 Value chain 55 Our sustainability goals 56 Environmental information 62 Climate change 62 Pollution 65 Biodiversity and ecosystems 68 Resource use and circular economy 70 Social 73 Own workforce 73 Workers in the value chain 79 Consumers and end-users 82 Governance 84 Business conduct 84 Animal welfare and antibiotics usage 86 Sustainability notes 89 EU Taxonomy 89 Policies 90 Greenhouse Gas Emissions 91 Company-specific metrics 92 Incorporation by reference 92 ESRS index 93 IRO-2 95 TCFD content index 99 Sustainability Statement General information Environment Social Governance
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ESRS 2 General disclosures ABOUT THE SUSTAINABILITY STATEMENT BP-1; BP-2 General basis for preparation of Sustainability Statements Scandi Standard is subject to the requirement for sustainability reporting in compliance with the Swedish Annual Accounts Act. Our statutory Sustainability Statement encompasses the Sustainability Statement on pages 51-99. The Sustainability Statement is consolidated according to the same principles as the financial statements. The Sustainability Statement includes all of Scandi Standard’s subsidiary companies and production sites. Joint ventures without operational control are not included. As with the financial reporting, the Sustainability Statement covers the 2025 financial year. The Sustainability Statement is published annually, and the contact person is the Sustainability Director. The Sustainability Statement addresses Scandi Standard’s material impacts, risks and opportunities, describing our associated work and the related internal steering documents. The report was developed pursuant to the European Sustainability Reporting Standards (ESRS). The time horizons applied are as follows: short term, 2025; medium term, 2030; and long term, 2050. No metrics were identified by Scandi Standard as having a high level of measurement uncertainty. Changes from previous reporting periods or errors in reporting in prior periods are reported and adjusted under their respective topical standard. In 2025, Scandi Standard also reported to the CDP for the entire Group in terms of climate, water and biodiversity. Scandi Standard reports in line with the requirements of the EU Taxonomy, see pages 62 and 89. Currently, none of Scandi Standard’s revenue is considered eligible and only a small share of capital and operational expenses. No disclosures were omitted due to privacy, intellectual property rights, know-how or ongoing negotiations. Disclosures in relation to specific circumstances Other than the limited assurance procedure performed by PwC, the information presented in the Sustainability Statement was not reviewed by any external party unless otherwise stated. More in-depth reporting principles and assumptions are presented in each topical sub-topic. Estimations of the value chain The Sustainability Statement covers Scandi Standard’s upstream and downstream value chain as relevant. Any measurement uncertainty is reported under its respective reporting principles as it arises. More information about the value chain is presented on page 55. No estimates of the value chain were made using indirect sources. Uncertainty in the value chain is linked to emis- sions data. Estimates of Scope 3 emissions can be found on pages 65-66. Scandi Standard strives to continuously increase the level of supplier-specific data through close dialogues with suppliers. Changes in preparation or presentation of sustainability information A new Group-wide HR system was implemented in 2025, which has impacted the collection of information from the employee survey. The switch to a new supplier involved some methodological changes that mean the results cannot be compared with previous years. Comparative figures Comparative figures were excluded for datapoints without any previously reported data. Comparative figures not affected by ESRS requirements are included. Unless otherwise stated, 2024 is the reference year and 2021 is the base year. Forward-looking disclosures Forward-looking disclosures are used primarily in forecasts for sustainability goals and are based on potential relationships in the future as well as possible actions planned by Scandi Standard. Use of the phase-in provisions Scandi Standard applies the phase-in provisions for disclosure requirements E1-9, E4-6, E5-6, S1-11, S1-12 and S1-15. Incorporation by reference Incorporation by reference is presented in the table on page 92. GOVERNANCE GOV-1; G1 GOV-1; GOV-2 The role of the administrative, management and supervisory bodies Sustainability is integrated into our business operations as a part of standard processes and responsibilities. At Group level, there is a Group Sustainability Director who is a part of Group management, and who is responsible for defining strategy and goals, and the reporting processes as well as for coordinating and supporting implementation in the organisation. Sustainability expertise in the Board and Group management is ensured through internal training and information from the Group Sustainability Director. In 2025, all members of Group management completed sustainability training using the Group’s digital training tool. This expertise is essential for integrating sustainability aspects into strategic decisions and managing the company’s material impacts, risks and opportunities, such as climate change, resource efficiency and animal welfare. Raising management’s awareness ensures that risks are identified and addressed in good time and that opportunities linked to the business model or strategy are taken as they arise. The double materiality assessment is initially approved by Group management before its final assessment and approval by the Board. Together with the CEO, the Group Sustainability Director is responsible for ensuring that relevant information is submitted to the Board of Directors, which has ultimate responsibility for the Group’s sustainability strategy and performance as well as for overseeing impacts, risks and opportunities. The Sustainability Director is responsible for informing the Risk and Audit Committee about controls and procedures used for monitoring, managing and overseeing impacts, risks and opportunities. In turn, the Board bears the ultimately responsibility for overseeing and managing impacts, risks and opportunities. This is also governed by the internal control framework for sustainability reporting. The Board prepared and approved the sustainability goals for material impacts, risks and opportunities. Progress towards the goals regarding material risks, impacts and opportunities is monitored through follow-up at Board meetings. Revisions or updates to the goals need to be approved by the Board. Business ethics, anti-corruption and compliance come under the Board’s responsibility, as do updating, monitoring Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 52ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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. and approving policies in these areas. Group management and the Board acquire business conduct expertise primarily through internal training from individuals responsible for that area, such as the legal department. Information about the experience of Group management and the Board that is relevant to Scandi Standard, including sectors, products and geographic locations, is presented on pages 39-40 of the corporate governance report. The share of women in Group management is 16.7 per cent. The share of Group management members born after 1980 is 16.7 per cent, with an age range from 40 to 54. Members of Group management represented three different nationalities. • The Board consists of eight members, all of whom are independent in relation to company management. 50 per cent of the members are also independent in relation to main owners. • 25 per cent of the Board members are women. • The share of members of Board born after 1980 is 25 per cent and age range from 36 to 72. Board members represented three different nationalities. • No Board members have sustainability expertise. F our Board members have industry experience. Additional expertise of the Board is described on pages 39-40 of the Corporate Governance Report. • There is no representation for employees or other workers on the Board. The Board’s roles and responsibilities include: • Appoint, evaluate and, if necessary, dismiss the Managing Direct or. • Establish the overall objectives and str ategy, including sustainability goals. • Identify how the sustainability matters affect impacts, risks and business opportunities. • Approve the double materiality assessment and oversee the assessment of material impacts, risks and opportunities. • Establish the requisite guidelines in internal steering documents to govern the company’s conduct in society to, thereby, ensure its capacity to create long-term value. • Establish the requisite internal steering documents, including the Code of Conduct. • Decisions on investments, including acquisitions, divestments and financing in accordance with established approval procedures. • Ensure an effective system is in place to follow up and control of the company’s operations, financial performance and financial position as well as associated risks therewith. • Ensure that there is a satisfactory control pr ocess for monitoring the company’s compliance with external laws and other regulations as well as with internal steering documents • Ensure that external communication is characterised by transparency and that it is accurate, reliable and relevant in, e.g., interim reports, annual reports and other reports. • Approval of interim reports, year-end reports and annual reports. GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies The Group Sustainability Director’s duties include the regular attendance of Board meetings, in order to inform and update Board members regarding new regulatory frameworks and material sustainability matters. The Group Sustainability Director also updates the risk and audit committee on matters pertaining to sustainability reporting and the development of an internal control framework for sustainability reporting. Specifically, the Board decided on updated policies for health and safety and the environment in 2025. The Board of Directors also approved the double materiality assessment and monitored the implementation of the new Corporate Sustainability Reporting Directive (CSRD). The Board has addressed all impacts, risks and opportunities given in the table on page 59 in connection with the approval of the double materiality assessment. The Group Sustainability Director keeps the Board and Group management informed regarding the implementation of due diligence processes as well as the results and effectiveness of adopted policies, actions, metrics and goals through regular Board meetings. In addition, the Board was briefed on sustainability-related KPIs at every ordinary Board meeting, and in greater detail in conjunction with quarterly reports. Sustainability policies Scandi Standard’s Code of Conduct constitutes the Group’s general sustain- ability policy and applies to every manager and employee, and all parts of the operations as well as to members of the Board. The Code of Conduct states that environmental, economic and social responsibility comprise an integral part of the business strategy and describes the approaches and guidelines that apply to material sustainability matters in the areas of environment, social conditions, employees, respect for human rights and the countering of corruption and bribery. The Code of Conduct is based on the core con- ventions of the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights, including the conduct of due diligence and application of the precautionary principle. To further clarify and reinforce important principles governing how we are to work and conduct our operations, the Board adopted an updated version of the Code of Conduct in 2024. Training courses for office and production staff were also updated in 2024 before being introduced in connection with the implementation of a new digital platform for skills development. Scandi Standard’s Supplier Code of Conduct imposes corresponding requirements to those in the internal Code of Conduct on the Group’s suppliers. In addition, Scandi Standard has a number of Group policies that clarify and specify our position and frameworks across a range of material areas: environment, health and safety, quality and food safety, product content, antibiotics and animal welfare. Scandi Standard makes the policies internally available through the intranet and training as well as by distributing hard copies to affected stakeholders who could be impacted. Potential external affected stakeholders receive them through customer and supplier dialogues, mailed copies and the website. All of the policies are available on Scandi Standard’s website and are described in more detail in the table on page 90, which provides an overview of the main content and scope of the policies as well as who is ultimately responsible. Furthermore, relevant third-party standards and links to the ESRS are also presented. GOV-3; E1 GOV-3 Integration of sustainability-related performance in incentive schemes Sustainability goals and KPIs for antibiotics usage, lost time injury frequency rate and GHG emissions are included in the company business plan and com- prise ten per cent of the bonus-based targets. These encompass all members of Scandi Standard’s long- and short-term incentive programmes, including the Group Management and the respective country management teams. Follow-up takes place on a quarterly basis within Group Management, and is included in regular quarterly reporting to the market. The three KPIs – lost time injury frequency rate, use of antibiotics and GHG emissions – are also linked to Scandi Standard’s financing. The weighting between the three KPIs is 20-40-40 per Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 53ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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cent, with antibiotics use receiving the lowest weight. A target is set for each KPI per country and at the Group level, which is approved by the remuneration committee. The GHG emissions target contributes to the goals presented under E1-4. More details about the remuneration policies and incentive programmes are presented in Note 5 Employees and employee benefits expenses. GOV-4 Statement on due diligence Scandi Standard works systematically with due diligence to identify, prevent and manage risks linked to human rights and the environment, in own operations as well as the value chain. The process is integrated into the annual risk assessment and the double materiality assessment, and includes supplier audits, third-party audits, corrective action plans and effective grievance mechanisms. Continuous stakeholder dialogues, steering policies and training ensure that actions are taken and followed up. The work includes preventing potential negative impacts and addressing actual impacts, with a particular focus on the most serious risks. The results are communicated publicly, including in the annual and sustainability report. The table below displays additional information about the core elements of due diligence. produces feed and in Sweden we operate parent bird breeding and hatcheries. The Lithuanian operation has a more integrated value chain, where parts of the broiler rearing operations are run by Scandi Standard. In several markets, Scandi Standard relies to some extent on third-party producers for a portion of its product range. Sustainability is an integrated part of the business at every stage of operations for Scandi Standard, where financial profitability and reduced risk often go hand in hand with reduced impact on people, chickens and the planet. Therefore, integrated sustainability also comprises its own pillar in the strategy, and in addition to the three targets defined as part of the Group’s strategic objectives, targets for all material sustainability matters have been prepared and approved by the Board of Directors. The sustainability goals are described in further detail on page 56. Scandi Standard’s domestic markets consist of the Nordic countries and Ireland. In these markets, the company has its own production plants and local brands. Scandi Standard’s export markets consist primarily of the rest of Europe and Asia, where for the most part, we sell products such as wings and feet. In the past two years Scandi Standard has invested in production facilities in Lithuania and the Netherlands. Total sales in 2025 was 14,083 MSEK. No exemptions were made when assessing current significant products, markets and customer groups in relation to the Group’s sustainability-related goals, since all products, markets and customer groups are connected to the sustainability goals. Our strong brands, consumer insights, and ability to develop innovative and high quality chicken products with a low carbon footprint are key intangible resources. Together with digital support for production, planning, and quality assurance, they create value throughout our entire value chain – from responsi- ble farming to safe and attractive products for consumers and customers. GOV-5 Risk management and internal controls over sustainability reporting Scandi Standard has an internal control framework for sustainability reporting based on the annual risk assessment. The primary risks are associated with inaccurate data being reported. Related controls include crosschecking data against the previous period or against invoices or primary sources. The Sustainability Controller also performs checks, primarily associated with con- solidation at the Group level. The internal control framework with controllers and control owners is implemented throughout the entire organisation. All controllers and control owners have received the training needed to perform their tasks. Risk assessment results are reported to administrative, manage- ment and supervisory bodies periodically, as required. More information about internal controls is presented on pages 37-38 in the corporate governance report. STRATEGY SBM-1 Strategy, business model and value chain Scandi Standard’s strategy builds on four pillars: increase the value of our protein, increased efficiency and resource use, better together and integrated sustainability. All four pillars link to material impacts, risks and opportunities. The strategic pillars and goals are described in more detail on pages 24 and 56. Scandi Standard produces fresh, frozen and cooked chicken products and eggs for consumption. An overview of Scandi Standard’s value chain is presented on this page and described in more detail on page 55. Material impacts, risks and opportunities for different parts of the value chain have been identified and analysed in conjunction with the preparation of the double materiality assessment. Scandi Standard has a complex value chain that extends from growing raw materials for feed, via parent birds, hatcheries and rearing to slaughterhouses, processing and packaging before distribution to customers and end-consumers. In addition to inputs related to chicken rearing, other important inputs for Scandi Standard include packaging, transportation and logistics, indirect goods and services, and other raw materials used in processing. Each step in the value chain poses its own challenges and Scandi Standard has identified impacts, risks and opportunities in each component of the value chain, which form the foundation for strategic work with sustainabil- ity. In the majority of Scandi Standard’s markets, slaughtering and processing are the only directly owned components of operations, the remainder of the value chain comprises external partners. In Ireland, Scandi Standard also Core elements of due diligence Paragraphs in the sustainability statement a) Embedding due diligence in governance, strategy and business model SBM-1, SBM-3, GOV-1, GOV-2 b) Engaging with affected stakeholders in all key steps of the due diligence SBM-2, S1-2, S2-2, S4-2, G1-1 c) Identifying and assessing adverse impacts GOV-1, GOV-2, SBM-3, IRO-1 d) Taking actions to address those adverse impacts SBM-3, E1-3, E5-2, S1-4, S2-4, S4-4 e) Tracking the effectiveness of these efforts and communicating E1-4, E5-3, S1-5, S2-5, S4-5 f) Management systems with third-party certification S1-4, S4-4 Geographical area Number of employees Denmark 1,089 Finland 329 Ireland 1,179 Lithuania 238 Netherlands 62 Norway 408 Sweden 978 Scandi Standard Annual and Sustainability Report 2025 | 54ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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V alue chain 3. Rearing Day-old chicks are transported from the hatchery to the rearing houses, where they spend five to eight weeks depending on the type of chicken and rearing method. 4. Slaughtering, processing and packing Broilers are transported to the slaughterhouse, where the end products are then packed or transported to processing plants. 5. Distribution and sales Finished products are distributed to customers and consumers in retail stores, restaurants, catering centres and industrial kitchens . 1. Feed production Feed is produced locally, with locally grown grains such as wheat and oats together with imported crops such as soy and corn. 2. Parent birds and hatchery In parent bird production, 150 to 170 eggs are produced per hen for 40 weeks. These are then transported to the hatchery for the hatching process. Scandi Standard’s operations in the value chain divided by country Feed production Parent bird breeding Hatching Rearing Slaughtering Processing and packaging Distribution Sales Sweden Denmark Norway Ireland Finland Lithuania Netherlands Scandi Standard Annual and Sustainability Report 2025 | 55ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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The aim of the sustainability goals is to create a framework for long-term sustainability work, to strengthen communication with various stakeholder groups and to ensure shared KPIs are measured and followed up in the same manner at all levels of the Group. All sustainability goals link to material impacts, risks and opportunities. Links to topical ESRS are given in the table. Our sustainability goals Focus area Sustainability goals for 2030 Follow-up Goals for 2030 2025 2024 Baseline 2021 Link to ESRS Scandi Standard works continuously to improve data quality, especially linked to climate data in the value chain. Since 2021, extensive work has been conducted to understand and collect specific data e.g., linked to the climate impact of feed production. In connection with the validation of the new FLAG targets in 2024, an adjustment was made to the base year 2021. 2024 scope 3 GHG emissions have been restated compared to previously reported results. PEOPLE Quality and food safety Providing local, healthy, safe and affordable protein Critical complaints and recalls Critical complaints: 0 Recalls: 0 14 2 0 2 7 10 S4 Quality and food-safety culture Response rate 90% Result 75% 77.8% 85.5% 76.6% 81.5% n/a Nutrition and health Clean Label Policy compliance 100% 97.8% 97.6% n/a Salt reduction Local targets n/a n/a n/a Suppliers Compliance − Supplier Code of Conduct 100% of high-risk suppliers 73.1% 73.1% 38.8% S3 Health & Safety Keeping our employees engaged, safe and healthy Lost Time Injuries (L TIFR) <15 18.7 27.1 39.2 S1 Employee satisfaction Scandi Pulse – employee satisfaction 75 n/a 73 n/a Inclusive culture Scandi Pulse – inclusive culture 90 n/a 74 n/a CHICKEN Animal welfare Safeguarding and developing our animal welfare work Animal-welfare indicator (foot score) <5 7.7 6.5 9.3 G1 Transport mortality (DOA) <0.13% 0.13% 0.10% 0.10% Rearing mortality <3.5% 3.9% 3.8% 3.6% Use of antibiotics Use of antibiotics <1% 7.6% 4.4% 5.2% PLANET Biodiversity Grower reporting of environmental and climate data 100% 41% 24% 0% E1, E2 & E4 Climate and greenhouse gases Energy and industry emissions compared with 2021 (tonnes CO 2e) – 42% (Scope 1 & 2) – 42% (Scope 3) 29,700 158,634 31,463 143,225 31,518 131,708 FLAG emissions compared with 2021 (tonnes CO2e) – 30.3% (Scope 1 & 3) 867,600 775,571 812,635 Plastic and packaging Reduced and improved use of plastics when developing our packaging Recyclable packaging 100% 91.0% 90.8% n/a E5 Packaging made of recycled or fossil-free materials 50% 57.1% 56.6% 21% Reduction of plastics -20% 10.2% (5,440 tonnes) 4.6% (5,165 tonnes) 4,936 tonnes Waste Maximising resource use and minimised waste Recycling 40% 37.0% 33.9% n/a E5 Food loss and waste Food loss and waste within production <1% 3.0% 1.4% 1.2% E5 Water Water targets related to volume and quality Local targets n/a n/a n/a E2 & E3 Scandi Standard Annual and Sustainability Report 2025 | 56ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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SBM-2 Interests and views of stakeholders The stakeholder dialogue process was reviewed and strengthened in 2022. Most stakeholders are local and therefore, local companies are the starting point for our stakeholder initiatives. The management team of each country identifies its priority stakeholder groups annually. Based on their strategy for stakeholder dialogues, an annual action plan is established, which is then continuously followed up. The outcomes of local stakeholder dialogues are presented to the management team for each country during local management team meetings. The local plans are compiled at Group level and supplemented with Group-wide stakeholders. Internal experts on the topics from all countries, brands and Group functions were engaged in conjunction with the double materiality assessment. The selection was based on criteria such as their role, expertise, relationship with a particular stakeholder group and role in society. For example, consumer surveys and research reports were used as evidence and stakeholder representation. Moreover, Scandi Standard maintains continuous engagement with the communities in which we operate and regularly participates in relevant forums with various external stakehold- ers. These interactions serve as a solid foundation for the assessment of the company’s most material impacts, risks and opportunities. The table shows Scandi Standard’s prioritised stakeholder groups in alphabetical order, as well as information about prioritised issues and strategy for dialogue and collab- oration. The Group management continuously follows up the work processes for materiality assessment and stakeholder dialogue. Scandi Standard’s local companies are members of local industry organisations related specifically to chicken production, but also food production in general. At the Group level, we are noting increased demand and requirements in terms of dialogues with customers and investors regarding sustainability matters, and we received a large number of requests during the year about Scandi Standard’s sustain- ability work, goals and risk management. As per the strategy and business model, the double materiality assessment and the due diligence process include stakeholder interests and views obtained through internal stakeholder dialogues and workshops. Scandi Standard annually evaluates human rights linked to its own workforce and workers in the value chain to identify changes in operations that can have a material impact on human rights. The evaluation covers own workforce (all employees regardless of employment form), work- ers in the value chain, and end-consumers and users. Different perspectives are accounted for through internal proxies and monitoring relevant forums, such as Oxfam and MVO’s CSR Risk Check tool. Stakeholder Material matters How we work Outcome of stakeholder dialogues Industry organisations Quality and food Safety, Climate and greenhouse gas emissions, Animal welfare Proactive through board representation in relevant organisations and through partici- pation in meetings, seminars, and relevant dialogues and referral processes Contributes to industry-wide guidelines and standards, while strengthening collaboration with relevant stakeholders Investors Climate and greenhouse gas emissions, Animal welfare, Feed efficiency, Health & Safety Quarterly reporting to the market and capital market days Helps meet investor needs for relevant and transparent sustainability data, and improves opportunities for long-term financing End- consumers Climate and greenhouse gas emissions, Animal welfare, Nutrition and health, Plastic and packaging Product development and innovation to meet the expectations of end-consumers Innovative products that meet consumer expectations and demands Customers Quality and Food Safety, Climate and greenhouse gas emissions, Animal welfare, Food loss and waste Availability and transparency related to material matters. We are increasingly receiving requests for information related to, e.g., climate calculations Strong customer relationships based on transparency as well as shared values and sustainability ambitions Suppliers Quality and Food Safety, Plastic and packaging, Suppliers (Code of Conduct) Proactively to ensure alignment related to material matters Higher quality and better control in the value chain as well as improved compliance with sustainability requirements Employees Health & Safety, Inclusive culture, Quality and food Safety, general sustainability matters Proactively through a large number of communication channels such as department meetings, intranet, digital signs, written information, and larger information meetings Employee perspective integrated into decisions and priorities. Stronger commitment and inclusions as well as a safer, improved work environment Authorities and legislators Health & Safety, Quality and Food Safety, Animal welfare, local environment at our production sites Regular contact with relevant authorities. Our operations are controlled daily through various control efforts Confirmed compliance with laws and regulations and improved transparency and oversight Growers Animal welfare, Use of antibiotics, Feed efficiency Proactively through onsite visits, specialist groups, quality programmes and regular written information Improved animal welfare and reduced antibiotics usage. Increased feed efficiency and lower environmental impact as well as enhanced collaboration and knowledge exchange in the value chain Scandi Standard Annual and Sustainability Report 2025 | 57ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Material impacts, risks and opportunities were identified through the double materiality assessment. The double materiality assessment is part of the annual risk process and part of the basis of Scandi Standard’s long-term strategy. Detailed descriptions of material impacts, risks and opportunities are provided in table format under each topical standard and in the table on page 59. The current financial effects of material risks and opportunities are disclosed in Note 1. Resilience Scandi Standard’s strategy is designed to manage material impacts, risks and opportunities in the areas of Climate change (E1), Pollution (E2), Biodiversity (E4), Circular economy (E5), Consumers and end-users (S4), Own workforce (S1), Workers in the value chain (S2), Business conduct (G1). Scandi Standard’s four strategic areas – increase the value of our protein, improve efficiency and optimise resource use, be better together and integrate sustainability – are clearly linked to material impacts, risks and opportunities. Financial materiality was assessed according to exposure, using estimates based on Scandi Standard’s own financial data. The financial effects related to opportunities are primarily linked to changing eating habits and increased consumer demand for chicken, and lower climate impact in the chicken value chain as well as transparency regarding the carbon footprint of products. Financial risks with high impacts are primarily linked to the ability to attract and retain talent. Current and anticipated effects Business model: Increased exposure to physical risks (water scarcity, extreme weather), transition risks (the Deforestation Regulation, the European Pack- aging Directive) and system risks (loss of ecosystem services) impacts cost structure, delivery reliability and brand value. Opportunities linked to demand for products with lower carbon footprints and high food-safety standards. Value chain: The greatest impact is upstream (feed, raw materials) in the form of deforestation and water risks, as well as downstream through transparency and food safety requirements. Strategy and decision-making: The risk analysis led to priorities in invest- ments, supplier requirements and product development. Planned changes: Continued development of feed based on local protein crops, investments in increased traceability and scenario analysis for system risks. Time horizons • Short term (2025): legislative changes, reduced water pollution, food safety, improved health and safety work. • Medium term (2030): Diversification of raw materials, biosafety, circular flows, supplier dialogues and improved efficiency through a more integrated value chain. • Long term (2050): Managing system risks through reduced dependence on high-risk commodities and robust partnerships. The analysis is based on insights from internal key individuals and covers the entire value chain, both upstream and downstream as well as own operations. More information about how the scenario analysis and risk identification was performed is reported under IRO 1. Strategic changes Start Status Adoption of a climate transition plan aligned with the 1.5 °C scenario (E1). 2024 Ongoing Diversification of feed and reduced inclusion of soy to mitigate deforestation and water-related risks (E4). 2019 Ongoing Enhanced food safety (S4) through HACCP , traceability, and recall preparedness. Ongoing Circular solutions for packaging and food-waste reduction (E5). Ongoing Health and safety programmes (S1) to reduce occupational risks and ensure business continuity. 2021 Ongoing Strengthened due diligence processes in the upstream value chain (S2). 2023 Ongoing Policy engagement and industry dialogue (G1) to address regulatory uncertainty. Ongoing Increased transparency and enhanced work on animal welfare (G1). Ongoing Scandi Standard Annual and Sustainability Report 2025 | 58ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Scandi Standard’s double materiality assessment outcome Topical ESRS Topic Sub-topic Impacts, risks and opportunities Time horizon Impacted part of value chain Impact materiality Financial materiality ESRS E1 Climate change Climate change adaptation Increased raw material prices due to physical climate change Short and medium term Non-material Material Climate change mitigation Climate impact, GHG emissions Short, medium and long term Material Non-material Energy Energy consumption and use of fossil fuel Short, medium and long term Material Non-material ESRS E2 Pollution Pollution of water Policies related to wastewater and the risk of water discharges in the value chain Short and medium term Material Non-material ESRS E4 Biodiversity and ecosystems Direct impact drivers of biodiversity loss Biodiversity loss as a result of outbreaks of disease among chickens Short, medium and long term Material Material Impacts on the state of species Stricter laws and regulations on land use and biodiversity Short and medium term Material Non-material Impacts on the extent and condition of ecosystems Soy production can cause deforestation Short and medium term Material Non-material Impacts and dependencies on ecosystem services Biodiversity loss linked to soy production Short and medium term Material Material ESRS E5 Circular economy Resources inflows, including resource use High resource use linked to plastic packaging Short and medium term Material Non-material Resource outflows related to products and services Reduced food waste and better use of the chicken Short, medium and long term Material Material Waste Waste and food waste in production Short, medium and long term Material Non-material ESRS S1 Own workforce Working conditions Employee health and safety, injuries and employee satisfaction Short term Material Material Equal treatment and opportunities for all Working conditions in production Short and medium term Material Non-material ESRS S2 Workers in the value chain Working conditions Working conditions in high-risk countries Short and medium term Material Non-material ESRS S4 Consumers and end-users Information-related impacts for consumers and/or end-users Correct consumer information on product packaging Short and medium term Material Non-material Personal safety of consumers and/or end-users Biosecurity, and inadequate food safety or labelling Short, medium and long term Material Non-material ESRS G1 Business conduct Corporate culture Talent attraction and retention Short, medium and long term Non-material Material Animal welfare Animal welfare Short, medium and long term Material Material Political engagement and lobbying activities Legal changes restricting chicken production Medium and long term Non-material Material Corruption and bribery Compliance related to corruption and bribery Short, medium and long term Non-material Material The table illustrates the findings of Scandi Standard’s double materiality assessment, including topics and sub-topics deemed as material from an impact materiality or financial materiality perspective, respectively. In the table, it is also presented in which part of the value chain the impacts, risks and opportunities occur. Risk Opportunities Negative impact Upstream Own operations Downstream Scandi Standard Annual and Sustainability Report 2025 | 59ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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IRO-1 The process to identify material sustainability- related risks and opportunities and impacts Material sustainability-related risks, opportunities and impact areas for Scandi Standard’s operations were compiled in a materiality assessment in 2017, which is updated annually. In autumn 2023, Scandi Standard completed a first double materiality assessment to identify the company’s material impacts, risks and opportunities. The assessment was conducted pursuant to the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The double materiality assessment was updated in 2025 and a decision was taken by the Group management and the Board of Directors during the year on its scope. The materiality assess- ment follows the double materiality principle and a sustainability matter is assessed as material if it is deemed material from either an impact or financial perspective. Based on the gross list of sustainability matters provided in ESRS 1 General requirements, including sub-topics and sub-sub-topics, an initial assessment was conducted of each matter in relation to Scandi Standard. The assessment encompassed Scandi Standard’s business activities, geographical areas, sectors and value chain. In addition to those matters encompassed by the ESRS, other sustainability matters were identified that, while not included in the ESRS, could also potentially be material for Scandi Standard. This resulted in a preliminary list of 36 sustainability matters spanning Scandi Standard’s value chain and different time horizons. A comprehensive study to identify Scandi Standard’s positive and negative impacts was performed as part of this assessment. In parallel, based on insights from Scandi Standard’s previous TCFD (Task Force on Climate-related Financial Disclosures) analysis, financial risks and opportunities were also identified. The assessment applied a value-chain perspective, where Scandi Standard’s value chain, business model and current work processes were diligently reviewed. Thereafter, an assessment was performed that took into account the gross list of sustainability matters encompassed by the ESRS as well as sustainability matters not covered by the ESRS. Within the framework of Scandi Standard’s activities, the assessment included analysis of the material impacts and financial effects linked to each matter. The risks and opportunities identified in the above processes were integrated into the corre- sponding sustainability matters in the gross list. Additional impacts, risks and opportunities were identified based on the findings from Scandi Standard’s stakeholder dialogues, internal documentation and desk-based reviews. The existing risk processes were integrated with the methodologies set out in the ESRS and applied in the analysis of the double materiality assessment. The mapped impacts, risks and opportunities were identified over short-, medium- and long-term time horizons as well as according to where they arise in the value chain. After mapping Scandi Standard’s positive and negative, and actual and potential impacts on people and the environment within the sustainability matters, the impact materiality was scored and prioritised. Negative impacts were scored based on severity, a combination of scale (0–5), scope (0–5), irremediable character (0–5) and likelihood (0–100 per cent). In total, 59 impacts were identified and scored. The scope of the impact varied between “minimal,” “informative,” “important,” “significant” and “critical.” Similarly, the respective financial impacts for sustainability-related risks and opportunities were assessed based on the scope of the potential financial impact according to a scale (1–5) and likelihood (0–100 per cent) of arising. The scoring was based on the company’s existing risk management system (ERM). In total, 62 risks and opportunities were identified and scored. The scope of the effects ranged from “minimal,” “informative,” “important,” “significant” and “critical.” Thresholds, which were validated internally through workshops and discussions with local sustainability officers and the Group management, were presented to and adopted by the Board of Directors in conjunction with deciding on the double materiality assessment. Scandi Standard’s Board has decided that an impact, risk or opportunity is material if it is at least “signifi- cant.” This means that sustainability matters associated with the impact, risk and opportunity assessed as “significant” or “critical” are also assessed as material. The decision to consider a matter material if it reaches at least the “significant” threshold is based on the need to prioritise the most important matters from a stakeholder perspective and on the need to maintain efficient resource allocation and management. The findings were then validated by representatives from the management team and other key company functions before final adjustments were performed. The materiality assessment resulted in eight current ESRS standards being considered material as well as 17 sub-topics, which are presented in the table on page 59. The table on page 59 also presents the material impacts, risks and opportunities identified as well as their location in the value chain. Internal stakeholder dialogues and the annual risk assessment have clarified the links between, on the one hand, Scandi Standard’s impacts and dependencies and, on the other, the risks and opportunities they can lead to. Scandi Standard includes sustainability risks in the annual risk assessment process and they are prioritised in line with other risks. More information about Scandi Standard’s risk assessment tool and broader work with risk analysis can be found on page 47. The decision-making process for the double materiality assessment goes first through Group Sustainability and then Group management before approval by first the Risk and Audit Committee, and then final approval by the Board, the highest decision-making body. The internal control procedure for the double material- ity assessment is performed through several annual internal processes listed above and follows the four eyes principle. Impact materiality: Impact of Scandi Standard on people and/or the environment. Financial materiality: Sustainability matters that trigger impacts on Scandi Standard’s cash flows, development, performance, position, cost of capital or access to finance. The double materiality assessment was performed in six steps: 1. Identification of sustainability matters 2. Stakeholder dialogues and process assessment 3. Assessment of impact materiality 4. Assessment of financial materiality 5. Methods and definitions for scoring 6. Materiality mapping and documentation Description of the processes to identify and assess material impacts, risks and opportunities Climate change The processes to identify and assess the material impacts, risks and opportunities linked to climate change were based on the previous assess- ment conducted in accordance with the Taskforce on Climate-related Financial Disclosures (TCFD) framework and local environmental risk assessments and stakeholder dialogues. It included own operations as well as upstream and downstream value chains, without geographical or organisational boundaries. To test Scandi Standard’s strategic resilience to climate change, three different scenarios were developed in 2023 based on data from the IEA, WBCSD and IPCC. The scenarios are consistent with the latest science and address Scandi Standard Annual and Sustainability Report 2025 | 60ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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plausible risks and uncertainties. The assessment also used a number of key assumptions regarding climate policy, technological development, energy prices and the climate impact of agriculture. These guided estimates both of exposure and of potential financial impacts in each scenario. The TCFD methodology is based on scenario planning that includes factors such as legislative ambitions and physical changes associated with an increase of the global mean temperature. The three scenarios used correspond to tempera- ture increases of 1.5°C. <2°C and >3°C, respectively. The time horizons applied for scenarios are as follows: short term, 2025; medium term, 2030; and long term, 2050. The same time horizons are used for all risks. These horizons are aligned with climate and business scenarios as well as with GHG emission reduction targets (E1-4), and strategic planning perspectives and capital allocation plans. External trends and factors are analysed to help identify risks and opportunities, in addition to discussions with key internal stakeholders. Four transition-related risks and two physical risks were identified, in addition to four transition-related opportunities. Classification of climate-related risks also took into account whether they were acute or chronic risks. These serve as the basis for the double materiality assessment. The table on page 60 presents the impacts, risks and opportunities identified as material. Climate change impacts, particularly Scandi Standard’s GHG emissions, linked to own operations in the form of Scope 1 and 2 emissions, meaning emissions associated with energy consumption and fossil fuel use. Upstream impacts in the value chain (Scope 3 emissions) have the greatest impact and arise mainly from feed production and feed efficiency. In the assessment of assets and business activities that may be exposed or sensitive to climate-related risks, the likelihood, magnitude, and duration of the risks were taken into account, as well as their geospatial coordinates. No major physical or transition risks were identified. Pollution The identification and assessment of pollution-related material impacts, risks and opportunities are based on local environmental risk assessments, stakeholder dialogues and internal documentation. Affected communities are regularly consulted at each facility, for example through stakeholder dialogues with the municipality. Emissions to water is a material area at all of the Group’s facilities. Water and marine resources The identification and assessment of impacts, risks and opportunities related to water and marine resources are based on local assessments, stakeholder dialogues and internal documentation. Water and marine resources are not reported because they fell under the materiality threshold. Biodiversity and ecosystems A comprehensive analysis inspired by the Taskforce on Nature-related Financial Disclosures (TNFD), a framework for reporting and guidance on nature-related risks and opportunities, was conducted in 2024 to better understand Scandi Standard’s nature-related dependencies, impacts and risks. The analysis was performed using several tools such as WWF’s risk filter, ENCORE, ThinkHazard!, Aqueduct and Science-Based Targets for Nature. The analysis covered the entire value chain and own facilities and addressed actual and potential impacts as well as dependence on biodiversity and ecosystems. Actual and potential impacts were analysed for own facilities and dependence on biodiversity and ecosystems was analysed for own facilities and the value chain. Transition risks, physical risks, systematic risks and opportunities were analysed using the aforementioned tools. The analysis of Scandi Standard’s own operations found that nature-related risks are of a medium level. No affected communities were directly involved in the analysis. Scandi Standard does not have any facilities in sensitive areas. Resource use and circular economy The processes to identify and assess material impacts, risks and opportunities related to resource use and circular economy are based on local environmen- tal risk assessments, stakeholder dialogues and internal documentation. No affected communities were consulted directly. Business conduct Business ethics and business conduct matters comprise material topics for Scandi Standard and more detailed information about the management of impacts, risks and opportunities can be found in the corporate governance report on page 37. Impacts, risks and opportunities linked to business conduct matters were identified based on the findings from Scandi Standard’s stake- holder dialogues, employee surveys, internal documentation and desk-based reviews. IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement Disclosure requirements are presented in detail in the tables on pages 93-98 in the sustainability notes. E1 – Climate change E2 – Pollution E3 – Water and marine resources E4 – Biodiversity and ecosystems E5 – Resource use and circular economy S1 – Own workforce S2 – Workers in the value chain S3 – Affected communities S4 – Consumers and end-users G1 – Business conduct The matrix presents the outcome of Scandi Standard’s double materiality assessment Impact materiality is presented on the y-axis and financial materiality on the x-axis. The materiality threshold has been set as significant. IMPACT MATERIALITY CriticalSignificantImportantInformationMinimal Minimal Information Important Significant Critical FINANCIAL MATERIALITY G1S1 E1 E2 E3 E4 E5 S2 S3 S4 Scandi Standard Annual and Sustainability Report 2025 | 61ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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DISCLOSURES PURSUANT TO ARTICLE 8 OF REGULATION (EU) 2020/852 (TAXONOMY REGULATION) The total The Group’s revenues according to the taxonomy definition amounted to 14,105 (13,035) MSEK during the year, this includes net sales, rental income and canteen sales (Note 4). Total capital expenditure (Capex) amounted to 845 (937) MSEK, which includes Intangible assets excluding goodwill (Note 11, row investments), Property, plant and equipment (Note 12, row investments), Acquisitions (Note 12, row acquisitions and divestments, gross value related to acquisitions) and Rights of-use assets (Note 13, row Increase of right-of-use assets). Operational expenses (Opex) according to the taxonomy definition was 346.7 (198.1) MSEK and includes primarily repara- tions and maintenance of buildings as well as short-term leasing agreements and leasing of low-value assets (total operating expenses are reported on page xx as other operating expenses). The taxonomy KPIs are prepared on a consolidated Group basis. Acquisitions during the year are reflected in the KPIs in line with the financial reporting scope. For the 2025 reporting, Scandi Standard has decided to apply Commission Delegated Regulation (EU) 2021/2178, as amended by Commission Delegated Regulation (EU) 2026/73, including the introduction of a materiality threshold. Under the cumulative materiality threshold, economic activities that, on a cumulative basis, represent less than 10 per cent of turnover, CapEx or OpEx are reported as non-assessed activities considered non-material and therefore do not need to be assessed for eligibility or alignment. Key changes for the 2025 reporting include simplified reporting templates and the introduction of a materiality threshold. We have assessed our economic activities against the Climate and Environmental Delegated Acts. All six environmental objectives have been considered, an in 2025, turnover and CapEx are below the cumulative materiality threshold and reported as non-assessed, while OpEx exceeds the threshold and has been further assessed. The non-assessed CapEx relates to CCM 7.7 Acquisition and ownership of buildings and CCM 7.2 / CE 3.2 Renovation of existing buildings. The OpEx KPI has been calculated on a consolidated Group basis, including all subsidiaries. Eligible OpEx is related to activity CCM / CE 3.2 Renovation of existing buildings. No operational expenses have been considered as taxonomy aligned. Scandi Standard is closely following the developments of the taxonomy, including a potential future inclusion of agricultural and food production economic activities which are more closely related to the core business. More detailed information is available on page 89. E1 CLIMATE CHANGE Description of impact, risks and opportunities Time horizon Physical climate risks Climate change can result in higher feed prices as well as supply chain impacts that can lead to shortages of raw materials for feed. Short and medium term Climate impact GHG emissions take place in own operations and in the value chain (Scopes 1, 2 and 3). The greatest impact is in the value chain, especially from the use of soy in feed. Short, medium and long term Energy consumption and use of fossil fuels Operations consume significant amounts of energy, with a portion coming from the use of fossil fuels. Short, medium and long term Risk Opportunities Negative impact TRANSITION PLAN E1-1 Transition plan for climate change mitigation Scandi Standard’s Climate Transition Plan is a comprehensive and time-bound action plan designed to support the company’s overall strategy and ambitious science-based climate targets. The climate transition plan is designed to support the Paris Agreement’s goal to limit global warming to 1.5°C. Our science-based targets include reducing absolute GHG emissions from energy and industry (Scope 1, 2 and 3) by 42 per cent by 2030 and by 90 per cent by 2050, with 2021 as a base year. For emissions from land use and agriculture (FLAG), the targets are 30.3 per cent by 2030 and 72 per cent by 2050, with a base year of 2021. Decarbonisation levers and key actions to reduce climate impact include a gradual transition to fossil-free energy and electricity at all facilities. The electrification of processes and vehicles, together with new technology such as heat pumps and non-fossil gas in the slaughtering process are other driving factors in reaching the targets. Environmental information A significant portion of the company’s climate impact arises from the value chain, with almost 80 per cent linked to feed production and feed conversion. To reach Scandi Standard’s long-term goal, better alternatives are being investigated for soy, which accounts for some 60 per cent of feed-related emissions. These include locally grown protein sources such as peas and broad beans as well as traceable, deforestation-free soy. The transition plan is approved by Group management. It is a key part of our business strategy and governs investment decisions. Sustainability is one of the four pillars of the Group’s strategy. As part of the strategy, MSEK 210 has been set aside for climate and sustainability-related capital investments up until 2027. Sustainability criteria are integrated into investment decisions and CapEx plans. A small portion of the Group’s capital expenditure is EU Taxonomy-eligible, but not Taxonomy-aligned. Since Scandi Standard’s main business, food production, is not EU Taxonomy-eligible, the Group does not intend to achieve Taxonomy alignment for the capital expenditure in question. Scandi Standard has no significant capital expenditure related to activities linked to coal, oil or gas and the company is not excluded from the Paris-aligned benchmarks. The largest potential locked-in GHG emissions are in the value chain, primarily associated with feed production and the use of soy. These are managed through strategic projects to replace soy with local protein sources and by requiring deforestation-free soy. We are also reducing the energy intensity of our facilities through electrification and energy optimisation. This helps mitigate transition risks. Since 2021, Scandi Standard has started using fossil-free electricity at the facilities in our home markets, started electrifying forklifts and reduced the use of fossil fuels in Sweden and Norway by implementing solutions based on dis- trict heating. Large-scale tests in Sweden, Ireland, Denmark and Finland have shown that reducing soy content has limited impact on animal growth and health. Moreover, Scandi Standard strives to strengthen collaboration with feed producers, with the aim of ensuring that the soy purchased is traceable and does not contribute to deforestation. This in turn leads to reduced emissions from land use change. Initiatives to reduce climate impact also encompass transport and packaging. Scandi Standard requires its transport suppliers to report environmental data and in Sweden, biofuels such as HVO biodiesel are widely used for goods transport, which has been facilitated by the installation Scandi Standard Annual and Sustainability Report 2025 | 62ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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of filling stations at production sites. The company’s packaging strategy is focused on minimising the use of plastics, promoting recyclability, and ensuring product quality and durability to reduce food waste. We report to the CDP annually about our progress, as well as in our Sustainability Statement. IMPACTS, RISKS AND OPPORTUNITIES ESRS 2 SBM-3; E1 SBM 3 Material impacts, risks and opportunities and their interaction with strategy and business model As a food producer, we depend on well-functioning agricultural value chains, primarily for the production of feed for our chickens and chicken rearing. At the same time, we are noting changed consumer patterns, new customer requirements and increased brand-related risks linked to climate change. Scandi Standard has performed a scenario analysis in line with the TCFD to test the resilience of the business model and strategy to various climate developments. Three scenarios were designed based on the IEA, NGFS, WBCSD and IPCC. Scope and execution of the resilience analysis Scandi Standard’s resilience assessment covers the company’s own opera- tions as well as the material parts of its value chain, including both upstream and downstream activities. The assessment was conducted in the fourth quarter of 2025 and is based on the outcomes of the company’s climate- related scenario analysis. Certain physical risks in secondary markets, as well as technological risks linked to alternative proteins outside the selected core scenarios, have not been assessed in detail, as they are currently considered to have a limited impact on the resilience of the business model. The resilience assessment is based on three climate scenarios that reflect different pathways for climate policy, market conditions and physical climate impacts: • Societal Transformation (1.5°C) – an organised transition, high prices for carbon, strong policies, low physical risk. • Forecast Policy (<2°C) – a disorganised transition, high transition risks, moderate physical risk. • Historic Trends (>3°C) – no transition, high physical risks, low transition risk. The scenario outcomes have been used to identify and assess how climate- related risks and opportunities may affect Scandi Standard’s business model, value chain and financial performance over time. The resilience assessment is primarily qualitative, complemented by quantitative estimates when available data allows. The analysis is based on several key assumptions, all of which are subject to significant uncertainty. These include macroeconomic factors such as global population growth and long-term protein demand, as well as assumptions related to the development of energy systems and technological maturity. Across all scenarios, a gradual electrification and an increased share of renewable energy in the EU is assumed, while a continued higher reliance on fossil fuels is expected in developing countries in the >3 °C scenario. The 1.5 °C scenario assumes faster improvements in energy efficiency and the development of alternative proteins, whereas these developments are assumed to progress more slowly in higher-temperature scenarios. The resilience assessment has been conducted using three time horizons: short-term (2025), medium-term (2030) and long-term (2050). These time horizons are aligned with the company’s greenhouse gas reduction targets (ESRS E1-4), strategic planning horizons and long-term capital allocation decisions. The impacts of identified risks and opportunities are expected to increase over time, particularly in scenarios with high physical climate risks. The expected effects from the scenario analysis include higher costs for feed and energy, which in long-term scenarios are estimated to potentially amount to approximately SEK 84 million per year by 2050. The analysis also indicates potential revenue declines in certain European markets, while opportunities for increased global export may arise. These estimates are associated with uncertainty and are based on current knowledge, assumptions about market development and available climate and cost data. As part of the resilience assessment, the results of the scenario analysis have been used to identify the need for mitigation and adaptation measures. These include actions to reduce climate impact and risk exposure in the supply chain, investments in energy efficiency, improved collection and quality assurance of climate data, as well as gradual investments in fossil-free and more robust energy solutions. Identified risks and opportunities Climate-related risks and opportunities are integrated into Scandi Standard’s overall risk management processes and governance model. The risks and opportunities identified through the scenario analysis and the resilience assessment are presented in the accompanying table and serve as input for continued strategic planning, prioritisation of actions and monitoring. Climate-related risks and opportunities Transition risks Pricing of GHG emissions Changes to laws and regulations linked to land use and deforestation Changed eating habits among end-consumers Challenges in attracting and retaining workers in the poultry business Physical risks Extreme weather events that impact on crops and feed production (acute) Increased mean temperatures and changed precipitation patterns with impacts on crops and feed production (chronic) Transition- related opportunities Changed eating habits from red to white meat Diversify product offering toward alternative protein sources Consumer information and transparency linked to low climate impact products Climate targets and actual against the 2021 base year (tonnes CO2e) 2030 2050 Scope 1 & 2 Scope 3 Scope 1 & 2 Scope 3 Energy and industry Targets –42% –42% –90% –90% Actual (Change 2021 to 2025) 29,700 (– 5.8%) 158,634 (+20.4%) FLAG Targets –30.3% –72% Actual (Change 2021 to 2025) 867,600 (+6.8%) Scandi Standard Annual and Sustainability Report 2025 | 63ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Outcome and overall resilience assessment The results of the resilience assessment indicate that Scandi Standard, based on the current business model and assuming the planned strategic and oper- ational measures are implemented, can continue to operate its core business and existing product portfolio across all assessed climate scenarios. No immediate discontinuation or fundamental redesign of the product portfolio is considered necessary to manage the identified physical or transition risks. However, the profitability and stability of the business model are assessed to be more challenged in long-term scenarios with high physical climate risks, where increasing costs and disruptions in the value chain may affect performance. The company’s resilience is therefore considered dependent on early and targeted investments in transition measures, energy efficiency and strengthened collaboration across the value chain in order to limit risk exposure and avoid future asset value deterioration. POLICIES E1-2 Policies related to climate change mitigation and adaptation Scandi Standard has adopted an environmental policy for the management of material impacts, risks and opportunities related to climate change mitigation and adaptation. The environmental policy addresses and steers work with impacts, risks and opportunities in the areas of climate change mitigation, climate change adaptation and energy efficiency. It is described in more detail in the table on page 90. The environmental policy covers own operations and the upstream value chain. Stakeholder interests were taken into consideration through internal stakeholder dialogues with individuals who are well-informed about the various impacts, risks and opportunities. ACTIONS E1-3 Actions and resources in relation to climate change policies During the year, actions related to climate change mitigation and the use of fossil fuels were implemented in own operations. The action that led to the most significant reduction in emissions in 2025 was the switch from fossil LPG to bioLPG at the facilities in Ireland. As a result, operating costs have increased by five per cent, while emissions have decreased by 1,015 tonnes CO₂e within Scope 1 compared to 2024. The action is evaluated each year to ensure that purchased volumes contribute to achieving local climate targets. The overall actions implemented and planned that are linked to climate change are described in the climate transition plan on pages 62-63. Energy consumption and mix 2025 (1) Fuel consumption from coal and coal products (MWh) 0 (2) Fuel consumption from crude oil and petroleum products (MWh) 40,634 (3) Fuel consumption from natural gas (MWh) 26,341 (4) Fuel consumption from other fossil sources (MWh) 0 (5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 4,807 (6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 71,783 Share of fossil sources in total energy consumption (%) 34% (7) Consumption from nuclear sources (MWh) 0 Share of consumption from nuclear sources in total energy consumption (%) 0% (8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) 19,367 (9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 121,364 (10) The consumption of self-generated non-fuel renewable energy (MWh) 0 (11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 140,731 Share of renewable sources in total energy consumption (%) 66% Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11) 212,514 Energy intensity per net revenue 2025 Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/SEK) 0.015 TARGETS E1-4 Targets related to climate change mitigation and adaptation The climate targets cover own operations, and upstream and downstream value chains. They are connected to physical climate risks, climate change mitigation, energy consumption and fossil fuel and are governed by the environmental policy. In 2021, Scandi Standard committed to the Science Based Targets initiative (SBTi), and undertook to set science-based climate targets. Scandi Standard’s climate targets were validated by SBTi in 2023 when work also started on setting additional climate targets according to SBTi’s Forest, Land and Agriculture (FLAG) framework. This also includes land-related emission reductions and removals. The new targets were validated in November 2024 and entail an undertaking by Scandi Standard to reduce absolute GHG emissions linked to energy and industry by 42 per cent by 2030 with 2021 as the base year, both from its own operations (Scope 1 and 2) and from the value chain (Scope 3). Furthermore, emissions from land management and land use change are to be reduced 30.3 per cent in Scope 1 and 3 within the same time period. These targets are aligned with the Paris Agreement’s ambition to limit global warming to 1.5°C and reflect the company’s commitment to transitioning to a food chain with lower climate impact. The SBTi also validated Scandi Standard’s long-term target to reduce absolute GHG emissions related to energy and industry by 90 per cent and to reduce absolute FLAG emissions 72 per cent by 2050. It includes all GHGs. The targets are set using the location-based method and are reported in gross tonnes CO 2e. The targets are consistent with the boundaries for GHG inventories under the SBTi and GHG Protocol guidelines. Only categories that are not considered applicable are excluded. 2021 is used as the base year, since neither the operations nor the value chain have changed significantly. Anticipated drivers for achieving the climate targets include the shift away from fossil fuels in production and transport, transition towards soy with deforestation-free value chains as well as feed with lower soy content and increased efficiency and integration in the entire value chain. Scandi Standard works continuously to identify and calculate climate impact throughout the value chain – both at Group and at product level. The targets for Scopes 1 and 2 are followed up every quarter, while the targets for Scopes 1, 2 and 3 are followed up annually. The targets are continuously updated and reviewed and a five per cent recalculation policy has been introduced. Future developments, such as volume growth and the shift toward more renewable energy in national electricity production, are taken into account in target follow-up which in turn are expected to lower greenhouse gas emissions in Scope 1 and 2. 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METRICS E1-5 Energy consumption and mix Continuous work is undertaken at each production site to ensure the efficient use of energy. The basis of these efforts is the Group’s environmental policy and local targets based on the Group-wide sustainability goals that are set annually and followed up monthly. Scandi Standard works systematically to map efficiency and to take actions related to energy optimisation, such as recirculating heat and changing to energy-efficient LED lighting, which has yielded energy savings. There is also ongoing work to gradually phase out fossil energy sources. All electricity purchased for our production plants is renewable electricity with energy attribute certificates, except for the facilities in Lithuania and the Netherlands. The table on page 64 provides details about energy consumption and mix according to consumption per source and energy intensity per net revenue, and encompass all of own operations, all of which fall under the Agriculture, Forestry and Fishing sector. The figure for net revenue has been reconciled with Note 3 of the financial statements. E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions Gross Scopes 1, 2, 3 and Total GHG emissions in accordance with the GHG Protocol can be found in the table on page 91 in the sustainability notes. Emissions are also broken down according to the FLAG (Forest, Land and Agriculture) guidelines. In total, Scandi Standard has increased their emissions with eight per cent between 2021 and 2025. This is primarily driven by the acquisitions in Lithuania and the Netherlands, as well as organic growth and increased production volumes in Scandi Standard’s home markets. Total GHG emissions per net revenue in 2025 was 0.07 tonnes CO 2e per net revenue using the location-based methodology. A reconciliation of net revenue amounts is presented in Note three of the financial statements. The Scope 2 calculations do not use any contractual instruments. E1 REPORTING PRINCIPLES The emissions calculations cover all Scandi Standard production facilities under operational control, as well as the relevant Scope 3 emissions. The following Scope 3 categories are excluded as they are not considered appli- cable: Category 8 (upstream leased assets), Category 13 (downstream leased assets) and Category 14 (franchises). Category 11 (use of sold products) is reported as out of scope in accordance with SBTi guidance. All greenhouse gas types are included. Both location-based and market-based calculations have been performed and are disclosed separately. Renewable energy usage is presented under biogenic emissions. In connection with the calculation and validation of the new FLAG targets by the Science Based Targets initiative (SBTi), the greenhouse gas emissions for the 2021 base year were updated, and the comparison year 2024 follows the same accounting principles. Total emissions for 2024 have been adjusted compared to previously reported figures; this adjustment has been made in Scope 3, Category 1. An overview of calculation methodologies and applied emission factors for each emissions category is presented in the table on page 66. Calculations are based on primary activity data where available; otherwise secondary data, extrapolations or other available information are used. Supplier-specific emission factors are applied where possible; otherwise, other relevant emission factors are used. In Scope 3, Category 1 (purchased goods and services), feed and broiler rearing are included. The climate impact from feed has been calculated using avail- able emission factors from feed producers. Land use change (LUC) emissions have been consistently included in the feed calculations, and are also reported separately in the table on page 91. As climate accounting—particularly emis- sions related to land use and food production—is an area under development, Scandi Standard aims to continuously improve data quality and strengthen calculation methodologies in dialogue with experts and relevant value chain actors. Energy consumption and energy mix are primarily calculated based on supplier invoices, complemented by meter readings. Purchased electricity is certified renewable in all countries except Lithuania and the Netherlands. For the Netherlands, the electricity mix has been classified as fossil-based based on supplier information. For Lithuania, the energy mix has been estimated based on the national average. Energy intensity per net revenue covers all of Scandi Standard’s operations, as all activities fall within a sector with high climate impact. E2 POLLUTION Description of impact, risks and opportunities Time horizon Emissions to water Feed production can cause pollution through nutrient leakage, (nitrogen and phosphorus), pesticides and chemicals, all of which can have a negative impact on water quality. Short and medium term Emissions to water Wastewater discharges can negatively affect water quality due to high levels of nitrogen, phosphorus and other organic material. Water treatment is conducted at most facilities. Short and medium term Risk Opportunities Negative impact IMPACTS, RISKS AND OPPORTUNITIES ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Scandi Standard works continuously to map and identify potential pollution to air, soil and water that may arise from its own production or value chain. All production sites endeavour, in accordance with their environmental permits, and current laws and regulations, to ensure that pollution is kept to a minimum and within existing thresholds. Scandi Standard is implementing environmen- tal management systems certified by a third party according to ISO 14001. The objective was to have all larger production sites certified before the end of 2025 and the plan is for the last ones to be certified during the first half of 2026. Currently, both of Manor Farms’ sites in Ireland, the Norwegian facilities in Jæren and Stokke, Den Stolte Hane’s headquarters in Oslo, Norway, and the facility in Lieto, Finland are certified. The certification process has started for the facilities in Valla, Aars and Farre. The implementation of certified environ- mental management systems includes structured and systematic monitoring and management, including target setting and continuous improvement, of impacts and risks related to water pollution. 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POLICIES E2-1 Policies related to pollution Scandi Standard has adopted an environmental policy for the management of material impacts, risks and opportunities related to pollution. The environ- mental policy addresses mitigating the negative impacts of water pollution, including prevention and control. It also includes the avoidance of incidents and emergency situations. If and when they do occur, the environmental policy also provides controls and mitigation of the impacts on people and the envi- ronment. Stakeholder interests were integrated into the policy through internal dialogues with employees in close contact with those who could be impacted by emissions to water as well as through dialogue with local stakeholders. The policy covers impacts linked to emissions to water in own operations and the upstream value chain. The environmental policy is described in more detail in the table on page 90. ACTIONS E2-2 Actions and resources related to pollution At present, Scandi Standard monitors and maps water pollution at each production plant in relation to the existing environmental permits. Among other actions, this includes tests on wastewater as well as dialogue with local supervisory authorities. Continuous work is ongoing at each production site to ensure the efficient use of water and improvement of the water quality for the water discharged from our plants. The basis of these efforts is the Group’s environmental policy and local targets for water use and water quality. During the year, investments corresponding to 1.1 MSEK has been made in related to the wastewater treatment plant in Valla, 3.7 MSEK in water treatment in Honkajoki and 0.2 MSEK in the wastewater treatment plant in Joniŝkis. This is reported as Property, plant and equipment (Note 12, row investments). The actions are part of own operations and are developed in consultation with internal stakeholders and local authorities. The actions are ongoing and have no specific timeframe. According to Scandi Standard’s latest water risk assessment, none of our own production sites or contracted growers are located in areas with direct water scarcity. However, the impacts and risks are greater in the feed value chain and specifically in agricultural production in South America. The main focus of upstream measures in the value chain Emission category Calculation method and quality of emission factors Description Scope 1 88.7 per cent of emissions are calculated using a fuel-based method. 8.8 per cent are calculated with average method and 2.4 per cent of emissions are calculated using supplier-specific data. Emission factors for fuels from Defra (2024) and for manure management from Scandi Standard’s product carbon footprint calculations. Scope 2 98 per cent of emissions are calculated using an average method. 2 per cent are calculated using supplier-specific data. Where supplier-specific data were not available, local average emission factors from AIB (2024) were used for electricity and district heating. Scope 3 59.2 per cent of emissions are calculated using supplier-specific data. 25.2 per cent are calculated using a hybrid method, 11.3 per cent are using an average method, 4.2 per cent are using a spend-based method, and 0.1 per cent are using a distance-based method. Category 1 62.6 per cent of emissions are calculated using supplier-specific data. 26.1 per cent are calculated using a hybrid method combining supplier- specific and average data. 10 per cent are calculated using an average method, and 1.3 per cent using a spend-based method. The largest share of emissions in Category 1 (83 per cent) is related to feed. Supplier-specific data is used for Denmark, Finland and Ireland. For Sweden and Norway, average emission factors from suppliers are applied. For Lithuania, an average method has been used. Category 2 Emissions are calculated using a spend-based method. Emission factors from Exiobase 3.9 (2019). Category 3 Emissions are calculated using an average method. Emission factors from Defra (2024). Category 4 47 per cent of emissions are calculated using a spend-based method, 44 per cent using supplier-specific data, 5 per cent are calculated with a distance-based method, and three per cent using an average method. Emission factors from NTM (2018 and 2024), Open CEDA (2025), Exiobase (3.8.2 and 3.9). Category 5 Emissions are calculated using an average method. Emission factors from Defra (2024). Category 6 Emissions are calculated using a hybrid method. Calculations are based on supplier-specific data, with average emission factors applied by the supplier. Category 7 Emissions are calculated using a hybrid method. Calculations are based on primary data from the employee survey, with average emission factors applied. Category 9 Emissions are calculated using an average method. Emission factor derived from Scandi Standard’s calculations of product-level carbon emissions. Category 10 Emissions are calculated using a spend-based method. Emission factor is based on Scandi Standard’s emission intensity. Category 12 Emissions are calculated using an average method. Emission factors from Defra (2024). Category 15 Emissions are calculated using a hybrid method. Activity data consist of primary data from the investments, with average emission factors subsequently applied. Scandi Standard Annual and Sustainability Report 2025 | 66ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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focus is on ensuring that soy is certified. Also, fresh water is a limited resource that must always be used responsibly. Within the framework of strict food safety and hygiene rules, we strive to use water optimally and, where possible from a food safety perspective, to recirculate water. Reduced local water use primarily focuses on indirectly reducing energy consumption, and reducing the amount of wastewater that needs to be treated. TARGETS E2-3 Targets related to pollution The targets are based on the environmental policy to monitor and minimise emissions of pollutants to water that are associated with own operations. They cover own operations and are set locally at the facility level, but include all of Scandi Standard’s operations. However, since environmental permits are adapted to local prerequisites, no Group-wide targets have been set. The targets are rolling, so no base or target years have been set. The targets are not built on science-based evidence but on local environmental permits, meaning that they are set in consultation with stakeholders in the form of local authorities and supervisors. Threshold values in environmental permits are monitored locally on a monthly basis and consolidated at the Group level on an annual basis. No other assumptions are made. Data is collected from suppliers who report wastewater sample results on a monthly basis. At Group level, the total quantity of water (m 3) per kilo of chicken produced is reported as an overall KPI. At local level water use and water quality are measured primarily based on existing statutory environmental permits and targets are set locally for these metrics. Threshold values and targets related to emissions of pollutants to water are obligatory and regulated by local environmental permits. Total emissions of pollutants to water (kg) are followed up at the Group level. No changes were made in 2025 to the targets, their corresponding metrics and underlying methodology, key assumptions, boundaries, sources or data collection processes adopted within the defined time horizon. METRICS E2-4 Pollution of water High levels of nitrogen, phosphorus and other organic material in wastewater can negatively affect water quality when discharged to watercourses. Local authorities have extensive requirements on the quality of wastewater, which is continuously monitored, for example, the phosphorus and nitrogen content, the Biological Oxygen Demand (BOD) content as well as the pH and lipid content of the water. Substances of particular concern as well as threshold values for emissions to water are decided by the sites’ local environmental permits or together with local actors. The monitoring is carried out in accordance with local environmental permits, and in certain cases may also be performed in accordance with the EU’s BREF standards, in line with local legislation. Breaches of agreed levels of emissions to water have occurred nine times during 2025. Six of the Group’s plants have their own treatment plants, treating wastewater from the slaughtering and processing of chicken prior to its onward release, for example, to municipal wastewater treatment plants. None of Scandi Standard’s production sites have emissions to water in areas with water stress. Total water discharge divided per destination is reported in the table on page 67. There has not been any previous consolidated reporting on emissions of pollutants to water, which means there is no information about changes over time. All facilities collect monthly data regarding emissions to water. Measurements and data collection is either conducted internally by own employees or by the receiving wastewater supplier, who delivers a monthly report with information pertaining to emissions to water. Emissions are directly measured through recognised continuous monitoring systems. In addition, automatic measurement systems undergo calibration tests and results are verified by independent laboratories. E2 REPORTING PRINCIPLES The total amount of emissions to water is calculated as the total volume of pollutants in wastewater, measured in kilograms and broken down by pollutant, for those production sites where monitoring is carried out. Water use, expressed in litres per kilogram of product, is calculated based on water meters and supplier invoices. The product volume includes all quantities produced that are intended for human consumption, measured in kilogram. The table on page 67 shows relevant pollutants based on Annex II of Regula- tion (EC) No 166/2006, the E-PRTR Regulation. Wastewater Water discharge by destination (m³) 2025 2024 Third-party water 1,513,980 1,224,627 Surface water 415,662 400,882 Ground water – – Seawater – – Total 1,929,642 1,625,509 Total water use in 2025 was 2,481,674 m 3, or 6.90 litres per kg product. Pollution to water (kg) 2025 Total emissions to water 1.05 BOD 0.29 COD 0.63 Phosphorus 0.02 Nitrogen 0.07 Fats 0.05 Water use, litres per kg product 0 2 4 6 8 20252024202320222021 Scandi Standard Annual and Sustainability Report 2025 | 67ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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E4 – BIODIVERSITY AND ECOSYSTEMS Description of impact, risks and opportunities Time horizon Loss of biodiversity Outbreaks of bird flu can lead to chicken mortality, production stops, reduced demand and limited exports, which would have a negative impact on revenues. Short, medium and long term Loss of biodiversity More stringent regulation regarding land use and biodiversity can increase costs for raw agricultural materials, such as soy and corn, that are used for chicken feed. Short and medium term Loss of biodiversity Large-scale soy production can cause deforestation, biodiversity loss and deterioration in ecosystem services such as carbon capture and water purification. Short and medium term Loss of biodiversity Monocultures and chemical use in soy production can worsen soil and water quality. Insufficiently detailed biodiversity assessments increase the risk of negative environmental impacts. Short and medium term Risk Opportunities Negative impact TRANSITION PLAN E4-1, SBM-3 Transition plan and consideration of biodiversity and ecosystems in strategy and business model Scandi Standard’s strategy for biodiversity is integrated into the climate transi- tion plan and aims to make the business model more resilient to nature-related risks. Reduced dependence on high-risk commodities, such as soy, combined with increased use of local protein crops reduces exposure to deforestation, water stress and loss of ecosystem services. These actions help reduce climate impact and retain biodiversity in the supplier stage. While the resilience analysis addresses own operations, it is primarily focused on the upstream value chain, which is where the most significant nature-related risks and dependencies have been identified. The analysis included internal stakeholders who are highly informed about biodiversity and its impact on the business model, ensuring that strategic decisions are based on operational expertise as well as on knowledge of the value chain. Assumptions and time horizons The analysis is based on the following assumptions: • Continued global demand for chicken products. • Increasingly stringent environmental and biodiversity requirements within the EU (including the Deforestation Regulation). • Climate change in line with the IPCC’s SSP2-4.5 scenario, meaning increased physical risks such as water stress and extreme weather. Time horizons: • Short term (2025): Adaptation to new EU regulations for deforestation and feed transparency. • Medium term (2030): Increased risk of water stress and changes to market requirements for sustainable products. • Long term (2050): System risks linked to ecosystem collapse, which can impact the entire value chain. Risk types and connection to strategy: • Physical risks: Water scarcity, lower water quality, extreme weather , loss of ecosystem services (e.g., pollination) and erosion. • Actions: Efficient water use at risk sites, diversification of raw materials, local feed solutions. • Transition risks: New laws (the Deforestation Regulation, the European Packaging Directive), increased traceability and certification requirements and changes to consumer preferences. • Actions: Investments in traceability systems, dialogues with suppliers, developing alternative feeds and packaging. • System risks: Large-scale biodiversity loss that impacts agricultural productivity and global supply chains. • Actions: Strategic planning and collaboration t o reduce dependence on high-risk commodities. Investigations into the possibility of a more detailed TNFD LEAP analysis are underway, including the collection of site data from suppliers, as a next step. Scandi Standard intends to adopt a biodiversity transition plan by no later than the end of 2027. IMPACTS, RISKS AND OPPORTUNITIES ESRS 2 SBM-3; E4 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Scandi Standard is completely dependent on natural ecosystems in order to produce chicken. Therefore, it is of outmost importance to ensure the protection of biodiversity and to minimise our impact on biodiversity. The main impacts of own operations are linked to water use, GHG emissions and ecosystem use. The greatest dependency in own operations is linked to access to water and groundwater. Moreover, the analysis shows that the larg- est nature-related impacts and risks are found in Scandi Standard’s upstream value chain and, in particular, in the sourcing of raw feed materials such as soy. The raw materials can require high water use and soy is also linked to deforestation and monoculture, which can result in ecosystem disruption and adversely impact biodiversity. In addition, these problems are being exacer- bated by climate change, which underlines the need to reduce GHG emissions. Potential financial risks such as cost volatility and supply chain disruptions due to reduced availability of raw materials were also identified. POLICIES E4-2 Policies related to biodiversity and ecosystems Scandi Standard has adopted an environmental policy for the management of material impacts, risks and opportunities related to biodiversity and ecosys- tems. The environmental policy addresses the mitigation of negative impacts on biodiversity and ecosystems in our operations and the upstream value chain through the certification of soy in the feed of the chickens slaughtered at our production plants. Group Management adopted in December 2024 a Biodiversity Statement which is available on Scandi Standard’s website. It describes Scandi Standard’s governance, strategy and management of impacts, risks and opportunities connected to raw ingredients, deforestation and protecting biodiversity in the value chain and at our own operations. The policies that regulate and govern work with disease control related to bird flu are the antibiotics policy and the animal welfare policy. The environmental policy regulates work with the traceability of products, components and raw materials that have material actual or potential impacts for biodiversity and ecosystems in the upstream value chain. The social aspects of impacts on biodiversity are addressed in the biodiversity statement and the environmental policy. 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Soy and biodiversity Soy, share of feed (%) Certified soy (%) 2025 2024 2022 2025 2024 2022 Scandi Standard 22.6 22.1 21.5 94.8 93.6 75.0 Denmark 26.9 25.8 25.3 100 80.0 16.7 Finland 20.0 18.8 20.5 100 100 100 Ireland 25.1 24.2 23.6 100 100 100 Lithuania 21.3 n/a n/a 0.0 n/a n/a Norway 19.4 13.8 11.8 100 100 100 Sweden 18.0 20.0 20.0 100 100 100 Scandi Standard is a member of the Round Table on Responsible Soy Association (RTRS). In Sweden and Norway, all soy is certified in accordance with RTRS or ProTerra; in Finland, most of the soy is certified pursuant to RTRS, but there are also other international certifications. In Ireland, all of the soy is certified in accordance with the Cefetra CRS Standard or RTRS. In Lithuania, all soy will be certified from 2026. use and sustainable oceans. This also includes information about how Scandi Standard regularly follows up targets and commitments. More information on biodiversity policies is presented on page 90. ACTIONS E4-3 Actions and resources related to biodiversity and ecosystems Since 2019, a strategic development project has been under way together with feed specialists to develop and test new feed mixes, where a significant part of the soy is replaced by locally grown protein sources, such as broad beans and peas. During recent years, large-scale tests were conducted in Finland, Ireland, Denmark and Sweden, with positive results, and tests will continue throughout 2026. The actions related to soy and feed are evaluated annually but are expected to be completed by the target year 2030. Along with the feed project, we also want to collaborate with feed producers to ensure that the soy that is purchased is traceable and does not lead to deforestation. We can achieve this through dialogue and involvement in various initiatives, such as the Swedish Platform for Risk Crops and the Danish soy dialogue. In terms of the conclusions drawn in the TNFD inspired analysis, the work going forward includes developing complementary targets and metrics to those already in place, in addition to continued work with suppliers of soy and other raw materials. Work began in 2025 to identify prioritised actions related to biodiversity, in the value chain as well as in own operations. Moreover, a more detailed site- and location-specific analysis of Scandi Standard’s operations and value chain will be conducted and Scandi Standard’s risk management in relation to these actual risks will be evaluated and a plan prepared where relevant. Opportunities linked to biodiversity and primary production will also be identified and communicated to growers. Scandi Standard’s actions do not include biodiversity offsets. No significant financial allocations have been made for actions related to biodiversity. More information about actions related to bird flu are described in G1 Animal welfare. TARGETS E4-4 Targets related to biodiversity and ecosystems Scandi Standard has two metrics and one target linked to biodiversity and ecosystems. The target linked to biodiversity and ecosystems was set through internal stakeholder dialogues and based on assessments from functions who are well-informed about biodiversity and ecosystems. The metrics encompass all of Scandi Standard’s subsidiaries and focus on soy in the feed of the chickens slaughtered at our production plants. The metrics have been selected due to the soy content of chicken feed, which comprises the greatest risk to biodiversity and deforestation in our value chain due to its origin, mainly in South America. The objective is to have all soy in the feed certified. The metrics are shown in the table below. No ecological thresholds were used when setting the target. It is not science-based or aligned with the Kunming-Montreal Global Biodiversity Framework. Identification of the target has not led to any changes in methodology or significant assumptions. There is no intention to use offsets to reach the target. The target falls under the “avoidance” and “minimisation” steps in the mitigation hierarchy. Its geographic spread includes Scandi Standard and its subsidiaries. Scandi Standard does not intend to set targets for risk associated with bird flu based on the nature of the risk. Scandi Standard aims to have zero disease outbreaks. More information about how work with bird flu is followed up can be found on page 87. METRICS E4-5 Impact metrics related to biodiversity and ecosystems change Scandi Standard is working to set additional targets and metrics linked to biodiversity and ecosystems. Metrics linked to bird flu are presented in G1 Animal welfare. E4 REPORTING PRINCIPLES The share of soy in feed is calculated as the total amount of soy in feed as a percentage of total feed consumption. Certification rate is calculated as the amount of certified soy based on the total volume of soy in feed that meets the standards defined in Scandi Standard’s environmental policy. Scandi Standard Annual and Sustainability Report 2025 | 69ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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E5 – RESOURCE USE AND CIRCULAR ECONOMY Description of impact, risks and opportunities Time horizon High resource use Plastic packaging ensures food safety and sustainability, reducing food loss and waste. At the same time, the use of plastic leads to increased resource consumption and a greater environmental impact. Short and medium term Reduced food waste and better use of the chicken Using the entire bird and converting waste into resources, for example as animal feed, creates new business opportunities. Short, medium and long term Reduced food waste and better use of the chicken The slaughtering process requires resource outflows, impacting circular flows and the environment. Short and medium term Waste and food waste Waste management includes, for example, animal waste, floor waste and food waste. A portion of resources is reused as animal feed or bioenergy. Short, medium and long term Risk Opportunities Negative impact IMPACTS, RISKS AND OPPORTUNITIES SBM-3 Scandi Standard’s strategy includes a focus area that concentrates on utilising the whole chicken and adding value to our products, which reduces food waste and strengthens our business. The project comprises a Group-wide project with collaboration between different functions and countries. We work with local stakeholders around our production plants to improve resource use and increase circularity, for example, through shared district heating production or waste recycling and reuse. POLICIES E5-1 Policies related to resource use and circular economy Scandi Standard has adopted an environmental policy to address the material impacts, risks and opportunities related to resource use and circular economy. The policy addresses the upstream value chain as well as own operations. Scandi Standard applies a broad approach and engages in several different The graph shows food loss in production at Group level over time. Data is collected continuously at the respective production site and is reported weekly. In 2025, the Irish production facility was included in the compilation for the first time. projects to promote resource use in packaging, food loss and waste. Scandi Standard’s environmental policy addresses the transition away from the use of virgin resources, including relative increases in the use of secondary (recycled) resources and the sourcing and use of renewable resources. Internal stake- holders who are well-informed about resource use and circular economy were involved in developing the policy. More information can be found under sustainability policies on page 90. ACTIONS E5-2 Actions and resources related to resource use and circular economy Scandi Standard took several actions in 2025 to reduce the use of plastic and to improve the environmental performance of packaging. The thickness of consumer packaging bags was reduced in Denmark, while thinner trays were introduced in Finland. To increase recyclability, tests were conducted in Norway, Ireland and Sweden with recyclable topseal film. Laminated, non-recyclable trays were phased out in Sweden after Ready-to-eat production was moved to Norway and Denmark, where recyclable material is used. Test were conducted in Norway to replace freezer laminate film with monofilm, which reduces the amount of plastic used and makes the film recyclable. PP trays for whole chickens in Ireland were replaced with rPET, increasing the share of recycled packaging material. At the production site in Valla investments in packaging equipment corresponding to 3.6 MSEK has been made, leading to lower plastics intensity. This is reported as Property, plant and equipment (Note 12, row investments). Further actions related to packaging are conducted by the supplier manager in Group Procurement and focus on the upstream value chain. Utilization and food waste are managed by the production team and actions are taken within own operations. The actions are performed on an ongoing basis in daily operations and will be completed by the target year 2030. TARGETS E5-3 Targets related to resource use and circular economy The targets for 2030, based on Scandi Standard’s environmental policy, are for all our packaging to be recyclable, for 50 per cent of our packaging volume to be based on renewable or recycled raw materials, and for the total volume of plastics to be reduced 20 per cent. The targets were set through internal stakeholder dialogues, but not in consultation with external stakeholders. They cover own operations and the upstream value chain. The areas of own operations covered are where the Group handles production and packaging. In the base year of 2023, 90 per cent of the material in packaging could be recycled. Additionally, 54 per cent of packaging consisted of recycled material and 4,648 tonnes of plastic were used. At present, 57.8 per cent of all trays are made of recycled plastic. In 2025, a total of 5,440 tonnes of plastic was used in our packaging and production processes, corresponding to 15.7 grams of plastic per kg product. The main plastic categories are trays, plastic film and production plastic. As part of the work with the sustainability goals, a group- wide project has been initiated with the aim of quantifying and setting targets to reduce food loss and food waste in our own processes. The graph presents food loss in production over time, which includes raw material that could have become food but, for various reasons, instead become by-products. Our target is that food loss in production should be less than one per cent by 2030, compared with the base year of 2021 when the food loss and waste was 1.2 per cent. Targets related to resource use and circular economy are set volun- tarily. Targets for resource use and the circular economy are voluntarily set but take into account the EU Regulation on Packaging and Packaging Waste (PPWR). The food waste target relates to the ‘prevention’ step in the waste hierarchy and is aligned with the EU’s targets for food waste. The food waste target falls under the “prevention” step in the waste hierarchy. The targets related to packaging are part of the “prevention,” “preparing for re-use,” and Food loss in production (kg) 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 20252024202320222021 Floor waste Process waste Factory rejects 1.2% 1.3% 1.4% 1.4% 3.0% Scandi Standard Annual and Sustainability Report 2025 | 70ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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“recycling” steps in the waste hierarchy. They are followed up and evaluated annually at local and Group levels. The targets include circular product design and minimising the use of primary raw materials through the increased use of recycled or recyclable materials. They are not associated with other resource use or circular economy issues. No changes were made during the year to the targets, their corresponding metrics and underlying methodology, key assumptions, boundaries, sources or data collection processes. The targets are based on collected science-based evidence related to the use of plastics, food loss and waste, recyclability and recycled material. All targets have been established through internal stakeholder dialogues, but not in consultation with external stakeholders. Progress towards the targets is in line with the original plans. Changes in performance relative to the targets are driven by improved data quality. METRICS E5-4 Resource inflows Scandi Standard’s value chain encompasses a number of steps that include the purchase of live animals, such as grandparent stock and parent birds. The eggs from the parent birdfarms are sent for hatching and the day-old chicks are then sent to farms for rearing. These comprise resource-intensive processes that can adversely impact the environment. Accordingly, Scandi Standard works continuously to develop initiatives to maximise resource use and to ensure that every chicken, and the whole chicken, counts and is used to the greatest extent possible. The focus is also on minimising the amount of plastics used where possible. The procurement process prioritises clean, non-composite materials and recycled, or thinner materials where possible. To calculate resource inflows related to both biological materials and packaging materials, supplier invoices and relevant supplier documentation are used as the primary data sources. E5-5 Resource outflows Impacts and opportunities related to resource outflows include reduced food waste and better use of the chicken as well as high resource use, and waste and food waste. Stricter legislation and trends toward a circular economy for packaging affect Scandi Standard. All plastic packaging in the EU must be reusable or recyclable by 2030. The first priority of Scandi Standard’s Use of plastics in packaging Plastic intensity (g plastic/kg product) Percentage of trays made of recycled plastic (%) 2025 2024 2022 2025 2024 2022 Scandi Standard 15.7 16.1 14.8 57.8 55.5 54.5 Denmark 16.6 14.9 13.0 87.6 88.4 98.0 Finland 28.4 28.6 22.0 0.0 0.0 0.0 Ireland 14.1 14.2 14.4 32.9 33.7 11.0 Lithuania 1.7 n/a n/a n/a n/a n/a Netherlands 41.8 n/a n/a n/a n/a n/a Norway 17.8 18.2 17.9 90.5 84.4 58.0 Sweden 14.5 15.4 14.7 78.5 66.0 74.0 Plastic intensity is calculated as the volume of packaging and production plastic procured per kilogram of produced chicken. The share of trays produced from recycled plastics is based on volume (kg). In Finland, plastic trays made of recycled materials cannot be introduced at present, due to the way the local recycling system is designed. Share of recyclability, recycled material and plastic volume in packaging Material in packaging that is recycled (%) Material in packaging that can be recycled (%) Plastic used in packaging (tonnes) 2025 2024 2023 2025 2024 2023 2025 2024 2023 Scandi Standard 57.1 56.6 54.0 91.0 90.8 90.1 5,440 5,165 4,648 Denmark 74.5 74.6 67.0 95.0 94.5 93.0 1,780 1,587 1,677 Finland 4.5 2.8 0.0 74.5 72.7 80.0 618 600 392 Ireland 42.7 43.9 38.0 83.6 88.6 88.0 1,220 1,141 1,030 Lithuania 55.9 n/a n/a 99.2 n/a n/a 30 n/a n/a Netherlands 63.2 n/a n/a 97.9 n/a n/a 34 n/a n/a Norway 65.3 67.1 67.0 93.4 93.5 92.6 645 663 493 Sweden 40.8 38.1 37.0 91.2 87.8 85.0 1,113 1,174 1,056 The percentage is calculated from the total amount of procured material in packaging in tonnes. These are key metrics linked to Scandi Standard’s packaging strategy where the focus is on reduction, re-use and recycling. Scandi Standard Annual and Sustainability Report 2025 | 71ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Resource inflows 2025 Total weight of products and technical and biological materials (tonnes) 336,224 Percentage of biological materials (and biofuels used for non-energy purposes) used to manufacture the undertaking’s products and services (including packaging) that is sustainably sourced (%) 95% Weight of reused or recycled components (tonnes) 8,697 Percentage of reused or recycled components (%) 3% Weight of secondary intermediary products and secondary materials (tonnes) 0 Percentage of secondary intermediary products and secondary materials (%) 0% Total weight of secondary materials (tonnes) 8,697 Percentage of secondary materials (%) 3% packaging strategy is to ensure product quality and shelf-life in order to reduce food waste and increase food safety. This, while staying focused on product quality and packaging functionality. For example, Denmark, Sweden, Ireland and Norway, now fully or partly use trays made of recycled PET, known as rPET. Waste The entire chicken is taken care of in the slaughter process. An average of 72 per cent of each chicken becomes food, while 28 per cent is used as by-products in for example animal feed, biogas or biofuels. Process waste mainly occurs when animals and raw material cannot be utilised for different reasons. In terms of the value chain as a whole, the customer and consumer stages are also important to the reduction of food waste. In this regard, Scandi Standard’s contribution is to provide innovative packaging solutions, guidance for consumers, and to optimise the product flow to and in retail stores. In addition to the biological waste, the waste at our plants primarily comprises of packaging and other combustible materials. All of our major production plants sort their waste and monitor the volumes of each waste category. E5 REPORTING PRINCIPLES Food loss and waste Food loss in production includes floor waste, process waste and factory rejects. For 2025, the Irish production facility was included for the first time in the compilation of food loss data. Lithuania and the Netherlands are not yet included. During 2024, a process to compile food waste data was initiated, this includes organic material that are incinerated, but not where material or nutrients can be recovered and used for other purposes. The effort to improve data quality is ongoing, focusing on disclosures related to the destination and handling of the food waste to ensure a more complete and reliable reporting going forward. Utilization Utiliziation is calculated as the share of the chicken that can be used in food production and the share that goes to by-products or food waste. The calculation is made as an average across all Ready-to-cook facilities and is calculated as grill weight in relation to live weight. Total amount of waste generated in own operations 2025 Hazardous Non- hazardous Total amount of waste (tonnes) 27 46,883 Total amount by weight diverted from disposal (tonnes) 12 12,116 – Preparation for reuse (tonnes) 0 10,571 – Recycling (tonnes) 12 1,423 – Other recovery operations (tonnes) 1 123 Total amount by weight directed to disposal (tonnes) 15 4,060 – Incineration (tonnes) 14 3,933 – Landfill (tonnes) 1 98 – Other disposal operations (tonnes) 0 29 Percentage of non-recycled waste (%) 54% 9% Total amount of radioactive waste (tonnes) 0 0 Actual waste streams Food waste Component materials of waste Biomass, plastic, cardboard Scandi Standard Annual and Sustainability Report 2025 | 72ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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S1 OWN WORKFORCE Description of impact, risks and opportunities Time horizon Employee health and safety There is a risk of a negative impact on employee health and safety in high-risk parts of operations, such as the production phase. This can also affect employee satisfaction. Short term Working conditions Various stages of the production process may involve occupational health and safety risks. Inadequate commu- nication, for example due to language barriers, can lead to misunderstandings, and the use of temporary work agencies may limit visibility into working conditions. Short, medium and long term Risk Opportunities Negative impact IMPACTS, RISKS AND OPPORTUNITIES SBM-3; S1 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model One focus area of Scandi Standard’s strategy is better together, which focuses on areas including how best to leverage collaboration, and how employees’ interests, opinions and rights are best addressed. One of the main challenges for Scandi Standard is to attract and retain skilled employ- ees, both in production and among office workers. A number of initiatives have been implemented over the past year to address impacts, risks and opportunities related to our people. In the coming year, Scandi Standard aims to continue to improve the work related to training and skills development, HR processes, and health and safety. During the year, Scandi Standard’s leadership programme held trainings with management teams and local leadership days for line managers in Sweden and Denmark. Training is also available in 130 languages on our digital learning tool, and a Group-wide HR IT system was implemented in 2025. The HR department is responsible for monitoring the impact on and risks to our employees. There is not considered to be a significant risk of child or forced labour at any of Scandi Standard’s facilities or in any of its countries. No material impacts occurred during the year. Regardless of employment form, all employees in our workforce who are affected by our activities are covered by the materiality assessment as well as the disclosures. This includes consultants and employees from temporary employment agencies. There are no identified risks and opportunities that arose as a result of dependence on specific groups. Material negative impacts depend on individual incidents. POLICIES S1-1 Policies related to own workforce Scandi Standard has three related policies: the Code of Conduct; the health and safety policy; and the whistle-blowing policy. Code of Conduct Scandi Standard’s Group-wide Code of Conduct forms the basis for managing material impacts and associated risks and opportunities relating to its own workforce, regardless of employment form. Scandi Standard ensures consultation with employees in its own workforce by engaging with people in our own workforce through established dialogues and collaborative processes such as employee surveys and whistle-blowing systems. The Code of Conduct includes respect for human rights, as well as other key areas related to working conditions and employees’ rights such as countering discrimination and harassment. The Code of Conduct defines the grounds of discrimination such as ethnicity, race, gender, disability, marital status, age, religion, political affiliation, national or social origin, illness, membership in labour organisations (including trade unions), sexual orientation or similar. Scandi Standard’s Code of Conduct makes no specific distinction regarding the inclusion or affirmative action regarding particularly vulnerable people in its own workforce. Scandi Standard’s Code of Conduct clarifies that upon identification of negative human rights impacts, the company must compensate, or make it possible to compensate, for human rights impacts. The Code of Conduct was designed in accordance with the UN Guiding Principles on Business and Human Rights and is applied as a foundation for identifying, assessing and managing the direct and indirect impacts on human rights that operations have. The Code of Conduct prohibits all forms of human trafficking, forced labour and child labour. The Code of Conduct outlines procedures intended to ensure that discrimination is prevented, reduced and addressed when identified, as well as to generally promote diversity and inclusion. Human rights Scandi Standard does not have a separate human rights policy since it is regulated by the Code of Conduct. Health and safety The Group’s policy on health and safety in the workplace clarifies Scandi Standard’s commitment to ensuring a good work environment, to promoting health and to ensuring compliance with legislation and standards in the area. In accordance with the policy, risks related to employee health and working conditions have been identified. The policy covers risks related to working conditions. It also covers how Scandi Standard monitors compliance. Group management has responsibility for implementation of the policy while the operational tasks related to health and safety and related management systems rests locally with the relevant company and specific production site. Equal treatment and non-discrimination Equal opportunities and non-discrimination are core elements of the Group- wide Code of Conduct. Scandi Standard does not have a separate policy regarding harassment or equal opportunity. Instead, these issues are regulated by the Code of Conduct. PROCESSES FOR COOPERATION AND REMEDIATION S1-2 Processes for engaging with own workforce and workers’ representatives about impacts Employee engagement takes place in every country at several levels and in different forms, often through a combination of partnerships with trade unions, work environment management, information sharing and structured dialogues between employees and management. Employees who belong to particularly vulnerable groups are covered by the same mechanisms as other employees. Engagement is conducted regularly but also as needed and involves local and central levels of the organisation. Social Scandi Standard Annual and Sustainability Report 2025 | 73ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Trade union representatives play a key role in Denmark, Finland, Norway, Sweden, Netherlands and Ireland and participate in regular meetings with HR and executive management. In Denmark, for example, local and central meetings are held twice a year, while weekly and monthly meetings are held in Finland. Engagement in Norway is facilitated through several bodies, such as the work environment committee (AMU), safety officers and trade union representatives. Meetings are also held monthly, quarterly and as needed. Ireland has communication in the form of newsletters, digital platforms and information screens as well as monthly trade union meetings. In Sweden, management holds meetings with the union representatives four times a year as well as local weekly meetings at plants. Engagement is primar- ily through employee surveys, performance reviews and safety inspections. The results of the survey are followed up in meetings between managers and employees, where areas for improvement are identified, decisions are made and action plans are developed. Recuring information meetings are also held with department heads, directors and managing director. The annual employee survey tracks whether employees think that improvements have been made since the previous survey. Dialogue frequency varies between countries, but usually includes weekly safety rounds, monthly trade union meetings, quarterly information meetings and annual performance evaluations. In some cases, such as Denmark, the structure is regulated by national agreements. HR functions, managers and executive management are the people primarily responsible for ensuring that dialogues are held and that their results convey the company’s strategy and work environment management. At the Group level, the Group HR and Communication Director is the most senior role responsible for ensuring that contact takes place and that the results are taken into account when making decisions. In Denmark, the HR Director chairs the central corporate council, while local managers lead local meetings. In Finland and Sweden, this responsibility is shared between the managing director, HR directors and management teams at different levels. In Norway and Ireland, HR directors and managers bear the primary responsibility. As whole, there is a strong focus on structured dialogues, workplace safety and communication throughout the entire Group, with local variations in form and frequency depending on national agreements and corporate culture. S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns Scandi Standard’s whistle-blowing function is available to every employee as a channel for perceived issues that need to be addressed and solved. The whistle-blowing function is available to employees and their represen- tatives as well as consultants. It is important that the channels are easily accessible. The channels used by Scandi Standard are evaluated and checked to ensure process efficiency and that employees are aware of and feel com- fortable using these channels. The employee survey asks employees whether they feel comfortable with sharing their thoughts and ideas without any fear of negative consequences. Our values and standards are important to us, and when a manager or colleague fails to live up to them we want our employees to take responsibility for speaking up. In most cases, they need to have the courage to challenge their colleagues’ behaviour appropriately and honestly. Sometimes this is not possible, in which case they should take up the issue with their manager or another appropriate person or function with the company, such as HR, Group Legal, Group Compliance, Group Sustainability or country management. The anonymous whistle-blowing function is another way to report serious irregularities when employees do not feel comfortable reporting through the above channels. All accepted reports of alleged irregularities are subject to an investigation in accordance with the whistle-blowing policy. The whistle- blowing team will determine the appropriate form of investigation. Further information about the whistle-blowing function is available under G1-1. Scandi Standard has committed to using a structured approach for managing negative impacts on its employees: 1. Identifying impacts: Regular assessments and audits are performed to identify potential or actual material negative impacts on employees, such as those pertaining to working conditions, health and safety and human rights. 2. Collaboration with affected individuals: Affected employees are engaged transparently and respectfully in order to understand their complaints. 3. Corrective mechanisms: Corrective measures are taken to address the underlying causes of the mate- rial negative impacts. This can include revising policies, training programmes, disciplinary actions or adjusting workplace procedures. 4. Monitoring and continuous improvement: The company monitors the effectiveness of corrective measures and adjusts its approach based on feedback and changing circumstances. Lessons learned from the incident are integrated into the company’s policies to prevent them from reoccurring. ACTIONS S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Scandi Standard uses a combination of internal and external processes to identify actions regarding its impact on employee health and safety, and working conditions. These processes include risk assessments, employee surveys and grievance mechanisms. The Code of Conduct, and the health and safety policy are used to guide the assessments and to ensure compliance with international standards. Incident reporting and follow-up also help Scandi Standard to understand potential risks and to take corrective actions. The Code of Conduct and regular audits ensure compliance with international labour standards, reducing the risk of unethical behaviour. Health and safety programmes include routine inspections and risk assessments to proactively identify and minimise risks. Training courses ensure compliance with these guidelines throughout the organisation. Lost time injury frequency rate (LTIFR, number of lost time injuries per million hours worked) Goals for 2030 2025 2024 (Base year) 2021 Scandi Standard <15.0 18.7 27.1 39.2 Denmark 17.4 30.0 18.0 Finland 21.6 39.5 55.8 Ireland 17.4 16.7 42.7 Lithuania 20.8 n/a n/a Netherlands 27.1 n/a n/a Norway 12.7 8.7 23.3 Sweden 23.2 38.4 61.4 Sick leave and work-related injuries are followed up at each production site and reported in shared systems. Two of the accidents during the year have caused permanent incapacity. A total of 131 injuries resulting in lost time occurred during the year and the total number of hours worked was 7,001,873. Lost Time Injuries and hours worked does not include headquarters. The most commonly occurring accidents are falls (same level), being caught between objects, fall from height and being struck by a moving object. The numbers include employees and non-employees (when applicable). Scandi Standard has an overall zero tolerance approach to accidents, with local measurable interim targets in the work to ensure a safe work environment. Scandi Standard Annual and Sustainability Report 2025 | 74ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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METRICS S1-6 Characteristics of the undertaking’s employees The number of employees varies seasonally. During the summer, the number of temporary employees increases, while the number of permanent employees decreases. This fluctuation is driven by the operational need for additional labour during peak season. Gender Number of employees Men 2,448 Women 1,835 Other 0 Not reported 0 Total employees 4,283 Country Women Men Other Not reported Total Denmark 445 644 0 0 1,089 Finland 138 191 0 0 329 Ireland 506 673 0 0 1,179 Lithuania 106 132 0 0 238 Netherlands 20 42 0 0 62 Norway 237 171 0 0 408 Sweden 383 595 0 0 978 Employee turnover 2025 Employee turnover (%) 15% Total number of employees who have left the undertaking 641 Health and safety management systems include employees and contractors. Danish operations are certified according to ISO 45001, which represents approximately 25 per cent of the Group’s employees or 1,089 people. Although serious accidents seldom occur, the challenge remains for Scandi Standard to continue the work to reduce the total number of accidents. In 2021, the number of work-related injuries resulting in lost time increased from an already high level, which led to the launch of a Group-wide improvement program and root cause analysis of all the accidents. The aim of the improvement program is to reduce the accident frequency by reinforcing preventive and systematic management of health and safety. The focus is on addressing the identified risks at production sites, creating a more robust safety culture and sharing experiences between production sites as well as advancing the development of shared working methods and reporting systems. Transparency and clear, consistent KPIs are key elements in the action plan, as are strengthening ownership and local targets. Work is now ongoing to further improve and strengthen our management of the work environment, by using, for example, a well-defined Group-wide method for reporting and following up incidents as well as by strengthening and clarifying processes, governance and policies. Scandi Standard allocates resources through dedicated health and safety officers, at least one of whom is assigned to every country or facility. Implementing the action plans does not lead to any significant operational or capital expenses since it is part of continuous work to minimise the negative impacts on own workforce. The investment process includes impacts on own workforce by evaluating whether new technology or investments can help improve the work environment or reduce the risk of injury. During the year Scandi Standard also worked to make information available in several languages. Most of the courses in the internal digital training tool are available in all local languages, for example. Health and safety training videos were produced in all local languages during the year, and have been implemented across all facilities to raise awareness and minimise risk of injury by making health and safety information available in a language that employees under- stand. The above processes ensure that Scandi Standard minimises its cause or contribution to material negative impacts on its own workforce. The time horizon for implementing actions extends to the target year 2030. Remediation for those who have suffered harm from material negative impacts is evaluated continuously at the local level by someone with the appropriate authority as incidents arise. No actual incidents arose during the year that required remediation. Presented actions are followed up through monthly reporting on accidents resulting in absence. They are also evaluated in health and safety forums together with the respective facility manager for the area. TARGETS S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Scandi Standard consults directly with its own workforce and workers’ representatives when formulating targets, checks and target follow-up. It also holds dialogues in order to learn lessons about improvements to make related to achieving the targets. The L TIFR target is linked to the risks identified in health and safety as well as in working conditions, and extends from the base year of 2021 to the 2030 target. Most employees work in a production environment where physical risks are present associated with health and work safety. The identified risks pertaining to employee health and safety form the basis of Scandi Standard’s zero tolerance approach to occupational accidents. Scandi Standard measures target fulfilment per quarter and can confirm they have led to clear improvements, with fewer L TIs. In addition, Scandi Standard works preventively and systematically on risks related to the physical work environment as well as the psychosocial work climate and corporate culture. Sick leave and work-related injuries are followed up at each production site and at a Group level. Local targets are also set in each country and these are linked to Scandi Standard’s incentive programme at both Group and local level. Accidents are followed up at each production plant, as well as through daily Group-wide operational check-ins, and then on a quarterly basis at country level and a monthly basis Group management level as well as at scheduled Board meetings. The differences between the countries are partly structural, the Ready-to-eat segment has a lower L TIFR than Ready-to-cook, but it also depends on historical safety culture work where the focus is to strengthen this work across the Group. Since work-related fatalities occur very rarely, they are reported on an annual basis, as are any of the accidents during the year that have resulted in lasting harm. Scandi Standard Annual and Sustainability Report 2025 | 75ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Full-time equivalents 2025 broken down by country Region Number of employees Number of permanent employees Number of temporary employees Number of non-guaranteed hours employees Number of full-time employees Number of part-time employees Denmark 922 847 74 0 907 7 Finland 313 291 22 29 291 4 Ireland 1,059 1,041 18 27 940 86 Lithuania 180 180 0 0 167 12 Netherlands 22 22 0 0 21 7 Norway 342 316 26 5 266 78 Sweden 831 731 100 0 784 24 Total 3,670 3,429 241 61 3,375 219 Full-time equivalents 2025 Contract type Women Men Other Not disclosed Total Number of employees 1,569 2,100 0 0 3,670 Number of permanent employees 1,481 1,948 0 0 3,429 Number of temporary employees 88 153 0 0 241 Number of non-guaranteed hours employees 24 37 0 0 61 Number of full-time employees 1,410 1,965 0 0 3,375 Number of part-time employees 128 91 0 0 219 S1-7 Characteristics of non-employees in the undertaking’s own workforce Non-employee workers at the company are provided by a third party. This pertains mainly to hired personnel and consultants. S1-8 Collective bargaining coverage and social dialogue The percentage of employees who are covered by collective bargaining agreements and the percentage working at an establishment with a workers’ representative are given in the table on page 77. 93 per cent of Scandi Standard employees are covered by a collective bargaining agreement. For employees not covered by collective bargaining agreements, local laws and regulations apply as well as the relevant industry standards that are used, e.g., for salary reviews. Total number of non-employees in the undertaking’s own workforce Head count 2025 Denmark 43 Finland 0 Ireland 0 Lithuania 24 Netherlands 3 Norway 10 Sweden 39 Total 119 Scandi Standard Annual and Sustainability Report 2025 | 76ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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S1-9 Diversity metrics Collective bargaining coverage Social dialogue Coverage rate Employees – EEA (for countries with >50 empl. representing >10% total empl.) Employees – Non-EEA (estimate for regions with >50 empl. representing >10% total empl.) Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl.) 0–19% Lithuania Lithuania 20–39% 40–59% 60–79% 80–100% Ireland, Norway, Sweden, Finland, the Netherlands and Denmark Ireland, Norway, Sweden, Finland, Denmark and the Netherlands S1-10 Adequate wages All employees and non-employee workers are paid a fair wage in line with applicable standards. S1-13 Training and skills development metrics Performance and career development reviews 2025 Percentage of employees that participated in regular performance and career development reviews (%) 31.6% Percentage of women that participated in regular performance and career development reviews (%) 32.5% Percentage of men that participated in regular performance and career development reviews (%) 31.0% Percentage of others that participated in regular performance and career development reviews (%) n/a Percentage of gender not disclosed that participated in regular performance and career development reviews (%) n/a Average number of training hours per employee Number of hours Per employee 11.2 Women 10.5 Men 11.8 Gender distribution at top management 2025 No. and percentage (%), women 16 (28%) No. and percentage (%), men 41 (72%) No. and percentage(%), other 0 (0%) No. and percentage (%), unspecified 0 (0%) Age distribution 2025 Number of employees and percentage (%) under 30 726 (17%) No. and percentage (%), from 30–50 2,449 (57%) Number of employees and percentage (%) over 50 1,108 (26%) S1-14 Health and safety metrics Each production plant conducts regular health and safety training, with a focus on site-specific risks, which includes training in risk identification and reporting. An important part of health and safety management is regular dialogue between employees and the leadership teams at each production site, for example though health and safety committees. The Group’s policy on health and safety in the workplace clarifies Scandi Standard’s commitment to ensuring a good work environment, to promoting health and to ensuring compliance with legislation and standards in the area. Responsibility for implementation of the policy and operational work environment management rests with the relevant company and specific production site. Scandi Standard works continuously to reduce the total number of accidents. The focus is on addressing the identified risks at production sites, creating a more robust safety culture and sharing experiences between production sites as well as advancing the development of shared working methods and reporting systems. Transparency and clear, consistent KPIs are key elements in the action plan, as are strengthening ownership and local targets. During the third quarter, a work-related fatality occurred at one of the farms in the Lithuanian operations. The accident has been investigated internally and, in addition to the existing occupational health and safety efforts, further measures have been implemented to prevent future accidents. The incident is also currently subject to investigations by the relevant authorities. Scandi Standard is fully cooperating with these investigations. Work is ongoing to further improve and strengthen our management of the work environment, by using, for example, a well-defined Group-wide method for reporting and following up incidents as well as by strengthening and clarifying processes, governance and policies. Scandi Standard Annual and Sustainability Report 2025 | 77ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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S1-16 Remuneration metrics (pay gap and total remuneration) The gender pay gap is presented per country and the annual remuneration ratio for all countries is presented in the table below. S1-17 Incidents, complaints and severe human rights impacts Scandi Standard has undertaken to respect human rights across the entire value chain. Working with human rights is an ever present and ongoing process. In 2024, a first comprehensive human rights risk analysis was conducted, which identified the human rights impacts of Scandi Standard and mapped the most serious risks. Efforts to systematically integrate human rights into a broader plan in operations continue. Human rights impacts are an important pillar in the overall due diligence process and in Scandi Standard’s risk process. In 2025, no notifications of incidents, reports or serious human rights impacts in our own operations were received through our whistle- blowing channel or through other internal grievance mechanisms. No fines, penalties and compensation for damage related to human rights incidents have been paid. Employees 2025 The percentage of own workers covered by the company’s health and safety management system based on legal requirements and/or recognised standards or guidelines (%) 100% The percentage of own workers covered by the company’s health and safety management system based on legal requirements and/or recognised standards or guidelines and which has been internally audited and/or audited or certified by an external party (%) 25% The number of fatalities as a result of work-related injuries and work-related ill health 1 Total number of recordable work-related accidents 472 Rate of recordable work-related accidents (%) 67.2 Total number of recordable work-related ill health 5 Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health 1,618 Non-employee workers 2025 The percentage of non-employee workers in the own workforce covered by the company’s health and safety management system based on legal requirements and/or recognised standards or guidelines (%) 100% The number of fatalities as a result of work-related injuries and work-related ill health 0 Total number of recordable work-related accidents 2 Rate of recordable work-related accidents 39.2 Total number of recordable work-related ill health 2 Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health 57 Country Aggregated pay gap (%) Denmark 16.1% Finland 7.1% Ireland 8.2% Lithuania –53.8% Netherlands 12.5% Norway 8.7% Sweden 5.2% Total 6.4% 2025 Annual total remuneration ratio 717.7% S1 REPORTING PRINCIPLES Number of employees The figures refer to the average for the year. FTE is defined and calculated according to actual working time and paid sick leave divided by the normal scheduled working time for the month. The number of employees is also presented in Note 5 of the financial statements. Non-employee workers Non-employee workers are defined as employees of another company who regularly perform work at Scandi Standard’s facilities. Temporary non-employee workers are not included. The figures refer to the number at the end of the year and are presented as number of employees. Lost Time Injuries (LTIFR) L TIFR is calculated by multiplying the number of accidents (leading to absence of at least one day) by one million and then dividing by the total number of hours worked, giving the number of accidents per million hours worked. Characteristics of the undertaking’s employees The number of employees is reported as headcount, meaning the actual num- ber of people employed at the company at the end of the period regardless of the degree of employment. Full-time equivalents are calculated by dividing the total hours worked during the period by the hours equivalent to a full-time job. Incidents, complaints and severe human rights impacts, including cases in breach of the UN Guiding Principles and OECD Guidelines for Multinational Enterprises 2025 Total number of incidents of discrimination, including harassment 0 Total number of complaints filed through channels for people in the undertaking’s own workforce to raise concerns (including grievance mechanisms) and, where applicable, to the National Contact Points for OECD Multinational Enterprises 18 Total amount of fines, penalties and compensation for damages as a result of the incidents and complaints disclosed above (EUR) 0 Total number of severe human rights incidents connected to the undertaking’s workforce 0 Scandi Standard Annual and Sustainability Report 2025 | 78ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Employee turnover Based on the number of employees who left the company during the year divided by the number of employees at year end. Diversity metrics Diversity metrics are calculated based on the number of employees at the end of the reporting period. Encompasses Group management and the manage- ment team of each country. Training and skills development metrics Regular participation in performance and career development reviews includes the number of employees who have taken part in such reviews during the reporting year. Average number of training hours per employee Scandi Standard documents training for office employees in its digital training tool as well as through in-person training sessions, which enables the reporting of training hours. For production employees, the trainings are conducted in-person and attendance is recorded separately. The average is weighted against the number of FTE:s per country. Health and safety metrics – employees and non-employee workers The frequency of recordable work-related accidents is calculated by dividing the number of cases by the total number of hours worked (by employees or non-employee workers) multiplied by one million. Remuneration metrics (pay gap and total remuneration) The aggregated pay gap is the difference in average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. This includes salary as well as variable remuneration. The annual total remuneration ratio is based on the total annual remuneration of the highest paid employee in relation to the median annual total remuneration for all employees. The annual total remuneration ratio is weighted against the number of FTE:s per country. S2 WORKERS IN THE VALUE CHAIN Description of impact, risks and opportunities Time horizon Working conditions Soy production in South America and other high-risk countries can entail lower labour standards, with an impact on working conditions and rights. Certifications and supplier requirements reduce risks, but challenges remain when it comes to ensuring that all workers have equal working conditions. Short and medium term Risk Opportunities Negative impact IMPACTS, RISKS AND OPPORTUNITIES SBM-3; S2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model All workers in the value chain are covered by reporting according to ESRS 2. Workers in the value chain are upstream, while workers at own facilities are reported in S1 under non-employee workers. No particularly vulnerable groups have been identified. Soy is one of the ingredients with a high risk of child or forced labour in the upstream value chain. Systematic risks are associated with soy production and high-risk suppliers, meaning impact is not linked to specific incidents. In 2023, a new process was adopted for supplier risk management and its implementation continued in 2024 and 2025. Supported by this process, high-risk suppliers can be identified, both in relation to category and country, and suppliers assessed as high risk are evaluated by a third party. Dedicated resources have been allocated within the purchasing organisation to conduct the risk assessment as well as evaluating high-risk suppliers and follow-up on relevant improvement areas. Internal stakeholder dialogues, dialogues with suppliers and desk-based reviews are used to establish appropriate criteria for establishing which workers are at greater risk of injury, including work contexts and tasks. Continued improvements related to workers in the value chain will focus on completing the implementation of the risk assessment process, strengthening the due diligence process with a focus on human rights and the environment, and establishing a concrete plan for corrective actions. POLICIES S2-1 Policies related to value chain workers Human rights policy commitments Scandi Standard’s Supplier Code of Conduct is formulated according to the ten principles of the UN Global Compact, the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises and the core conventions of the International Labour Organization. Supplier Code of Conduct Scandi Standard’s Group-wide Supplier Code of Conduct provides the foundation for managing material impacts, risks and opportunities, by setting requirements related to environmental performance, anti-corruption and ethics, human rights and social responsibility that correspond to the Group’s own Code of Conduct. The Supplier Code of Conduct also specifies that suppliers must ensure that these requirements are passed down the chain, i.e., to their respective subcontractors. It includes requirements about respecting workers’ human rights, engagement with workers in the value chain and actions or opportunities to remediate impacts on human rights. The Code of Conduct is consistent with internationally recognised instruments such as the UN Global Compact, the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises and the core conventions of the International Labour Organization regarding child labour, forced labour, freedom of association, non-discrimination and equal pay. With the support of the quality and sustainability functions, the Group Procurement Director is responsible for the content and implementation of the Supplier Code of Con- duct. In 2024, the Supplier Code of Conduct was updated and approved by the Board. In this context, a process was decided to get existing suppliers to sign the updated code. Compliance with the Code of Conduct is ensured through supplier audits. Assessments are also performed by a third party. A more detailed description is provided in S2-4. The systematic approach is based on the supplier risk assessment process, which includes a risk screening at the supplier level based on risk parameters such as production country, as well as category- and industry-specific risks linked to the environment, human rights or ethical issues. Scandi Standard Annual and Sustainability Report 2025 | 79ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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PROCESSES FOR COOPERATION AND REMEDIATION S2-2 Processes for engaging with value chain workers about impacts Scandi Standard requires specific suppliers to sign the Group-wide Supplier Code of Conduct. The Supplier Code of Conduct specifies that appropriate actions must be in place to ensure compliance with the Code in the supplier’s own operations and value chain, including policies and controls, and that these are to be communicated to all employees, including the possibility of using Scandi Standard’s whistle-blowing function to report problems or irregularities related to compliance with Scandi Standard’s Supplier Code of Conduct. Feedback on incidents reported through the whistle-blowing function is given after evaluation, usually within 30 days. Review is performed by a third party. Direct dialogue and consultation with workers and their representatives are conducted through supplier dialogues and the buyer responsible for the supplier. Workers in the value chain influence decisions and actions related to high-risk suppliers as well as how risks for workers can be minimised in the value chain. Contact with workers in the value chain is maintained by the buyer responsible for the supplier through the use of recurring supplier evaluations and dialogues, procurements and other continuous contact with suppliers. The Group Procurement Director has the ultimate responsibility for this contact and ensuring it informs Scandi Standard’s decisions. Scandi Standard does not have any global framework agreements with trade unions for workers in the value chain. The effectiveness of contact with workers in the value chain is regularly assessed through supplier evaluations, including those for high- risk suppliers. Further information about the whistle-blowing function is available under G1-1. Remediation processes Scandi Standard’s Supplier Code of Conduct requires suppliers to strive to provide all employees with opportunities for confidential grievance mecha- nisms, regardless of employment form. They are also to ensure that there are processes in place to guarantee protection from retaliation for employees who raise concerns or express their views in good faith, as per the EU Whistle- blower Directive or local legislation. Suppliers are also required to provide Scandi Standard with all necessary documentation related to compliance with the Supplier Code of Conduct and to permit Scandi Standard, or any third-party auditor acting on behalf of Scandi Standard, to perform audits, whether on-site or through desk-based reviews. S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns The supplier and its employees can communicate any concerns about irreg- ularities related to legislation or Scandi Standard’s Supplier Code of Conduct through the whistle-blowing system available on Scandi Standard’s external website. The whistle-blowing system is handled by an independent third party, enabling anonymous and confidential reporting in accordance with the General Data Protection Regulation (GDPR). The Supplier Code of Conduct states that anyone who uses the whistle-blowing function is protected from retaliation. No surveys have been conducted to analyse whether workers in the value chain are aware of the process or trust it. Scandi Standard is involved with incident remediation and assesses the effectiveness of actions on a case-by-case basis through internal and external stakeholder dialogues and collaboration. S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions Our systematic approach is based on the supplier risk assessment process, which includes a risk screening at the supplier level based on risk parameters such as production country, as well as category- and industry-specific risks linked to the environment, human rights or ethical issues. In 2023, the supplier risk assessment process was clarified and expanded, and the screening process has been further structured, thereby ensuring a targeted focus on suppliers with the most significant sustainability risks for Scandi Standard. One significant adjustment includes the extension of the requirement for all indirect suppliers of food-related materials and services, regardless of the size of the supplier relationship, to be included by the Supplier Code of Conduct. The extension encompasses suppliers who provide materials and services such as personal protective equipment, cold storage solutions, chemicals and external cleaning services. The limit of SEK 500,000 per year is retained for other suppliers. In conjunction with the introduction of the new process, Scandi Standard entered a strategic partnership with EcoVadis, a provider of external sustainability assessments. The partnership with EcoVadis enables Scandi Standard to leverage their global network of supplier sustainability assessments, thereby gaining increased transparency and promoting collab- oration to drive continuous sustainability improvements with our suppliers. The partnership facilitates effective, credible and transparent monitoring of social and environmental performance in the supply chain, and ensures compliance with the requirements of our Supplier Code of Conduct. In addition to working with our direct suppliers, Scandi Standard works continuously to reduce potential negative impacts in terms of working conditions, mainly linked to soy production in South America, but also other countries where the risk of negative impacts related to working conditions and human rights is higher than in our Nordic domestic markets. Scandi Standard addresses these potential negative impacts and risks through requirements for certified soy, as well as assessments of suppliers from high-risk countries. Any supplier who is in breach of the Supplier Code of Conduct is expected to establish a corrective action plan to address the situation, including all areas such as human rights and the environment. All high-risk suppliers are obligated to undergo a sustainability assessment performed by a third party through EcoVadis to ensure that they follow the Supplier Code of Conduct. If the supplier receives an overall score under 50 points on the assessment, they are placed on a corrective action plan. The individual responsible for the relationship with the supplier is also responsible for customising the action plan to the focus areas identified in the EcoVadis assessment and in consultation with Group Sustainability. The supplier has until next year’s assessment to improve and work on the corrective action plan. Actions taken by the supplier should be visible in the reassessment. They are followed up and verified by analysing the overall score after the update from the reassessment. If the total score increases, the measures are considered effective. A discussion can begin regarding the status of the supplier if there are no significant improvements after two reassessments and two corrective action plans. Implementing the action plans does not lead to any significant operational or capital expenses since it is part of ongoing work and dialogues with suppliers. The time horizon for implementing actions extends to the target year 2030. No specific actions were completed during the year since this is an ongoing project. Any incidents involving injuries through material negative impacts that require remediation are to be evaluated and addressed directly by Group Procurement in consultation with Group Sustainability. No incidents requiring remediation were identified during the year. To ensure that our own business practices do not cause or contribute to material negative impacts on workers in the value chain, Scandi Standard has integrated sustainability requirements into procurement by establishing internal guidelines and processes. Our procurement procedures are designed to avoid unreasonable timeframes, price pressure or volume requirements that could worsen working conditions at suppliers. We work proactively with supplier dialogues to Scandi Standard Annual and Sustainability Report 2025 | 80ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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identify and manage situations that run counter to this design, for example by adjusting delivery plans or offering support to build capacity. This also ensures that data use and follow up is transparent and in line with applicable privacy requirements, which strengthens trust and enables continuous improvements without creating additional risks for workers. No known serious human rights problems or incidents were identified in the upstream value chain in 2025. If an actual material negative impact arises for workers in the value chain, Scandi Standard has established procedures to provide or enable remedy. This is affected by immediate assessment and action in consultation between Group Procurement and Group Sustainability, including requirements for corrective action plans and follow up until the situation is resolved. In addition to managing risk, we work actively with initiatives that promote positive impacts, such as strategic partnerships for sustainability evaluations, training initiatives for suppliers and comprehensive requirements in the Code of Conduct. These actions aim to improve working conditions, human rights and social dialogue in the entire value chain. TARGETS S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities The targets related to workers in the value chain were set through internal stakeholder dialogues with employers who have close contact with suppliers. Instead of direct supplier contact, targets were based on assessments from functions who are well-informed about supplier relationships. Despite the downward adjustment of previous years, we retain the same ambitious target of having 100 per cent high-risk supplier compliance with our Supplier Code of Conduct by 2030. The refined process also showcases differences in our sup- pliers’ risk profiles, as shown in our updated definition of high-risk suppliers, which now clearly states the risk criteria for high-risk suppliers as belonging to a specific high-risk category or country. After acquisitions in Lithuania and the Netherlands in 2025, the number of suppliers for Scandi Standard increased, which required an analysis of the expanded supplier base. During the year, 286 new suppliers were evaluated according to the supplier risk assessment processes, of which 20 per cent signed the Supplier Code of Conduct. The remaining supplier base will continue to be analysed and evaluated in 2026. A phased approach has been used with the implementation of EcoVadis, with the first group of high-risk suppliers invited to complete the external sustain- ability assessment in 2023, before expanding the group in 2024 and 2025. Despite the increase of the supplier base, the signatory rate for the Supplier Code of Conduct improved slightly over 2024. The gradual implementation of EcoVadis assessments continued throughout all of 2025, which increased the coverage rate among high-risk suppliers from 54 per cent to 69 per cent, corresponding to 52 per cent of Scandi Standard’s total spend among high-risk suppliers. The last phase of the implementation will begin in 2026 and cover supplier categories that had previously been deferred. Excluding these cate- gories, the adjusted supplier coverage rate increased from 65 per cent to 84 per cent, corresponding to 99 per cent of Scandi Standard’s total spend among high-risk suppliers. The initiative has provided a comprehensive understanding of the maturity level of our high-risk suppliers’ sustainability performance and the process of introducing action plans and targets for our suppliers has also been initiated, to ensure continuous improvement for suppliers with improvement potential. Target achievement is evaluated through internal stakeholder dialogues with employees who have close contact with suppliers. No lessons or improvements were identified in terms of the initiatives taken by the company to reach the targets. S2 REPORTING PRINCIPLES Measures taken to improve methodology and data quality in 2023 resulted in downward adjustments of the key metrics for 2021 and 2022. The new, improved, methodology has been consistently applied since its implementa- tion in 2023 and also applies to 2025. The Supplier Code of Conduct signatory rate is calculated as the number of direct and indirect suppliers who have signed the Supplier Code of Conduct. Suppliers are defined as high-risk if they either belong to a high-risk category or are located in a high-risk country. Active external sustainability assessment is calculated as the share of high- risk suppliers who have been assessed by EcoVadis. Supplier Code of Conduct – signatory rate 2025 2024 (Base year) 20211) Direct suppliers 81.9% 80.1% 38.8% Indirect suppliers 19.2% 17.9% 8.7% High-risk suppliers Goals for 2030 2025 2024 (Base year) 20211) Supplier Code of Conduct – signatory rate 100% 73.1% 73.1% 20.5% Active external sustainability assessment 69.2% 53.8% – 1) The reference years have been recalculated based on the new methodology. Scandi Standard Annual and Sustainability Report 2025 | 81ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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S4 CONSUMERS AND END-USERS Description of impact, risks and opportunities Time horizon Correct consumer information Insufficient or inaccurate product information can harm consumers, leading to a negative impact on trust. Short and medium term Biosafety Inadequate food-safety standards or labelling can lead to recalls, fines and damage to the brand. Short, medium and long term Risk Opportunities Negative impact IMPACTS, RISKS AND OPPORTUNITIES SBM 3; S4 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Scandi Standard’s consumers are consumers who eat chicken. This does not include consumers of goods that are hazardous to humans, negative impacts related to privacy, consumers who depend on true and fair information or consumers who are particularly vulnerable to health or privacy issues. All of Scandi Standard’s consumers are covered by material impacts, no consumer groups have been excluded or considered to be at greater risk of harm in the double materiality assessment. One of Scandi Standard’s main tasks is to provide local, healthy, safe and affordable protein. This requires robust processes to ensure that products are of good quality and safe for end-consumers to eat. The sustainability and quality of the products also form the foundation for profitability and for maintaining good customer relations. Each production site is responsible for product quality and food safety through a local quality manager. At Group level, shared processes and systems are secured through the Group Quality and Food Safety function, which reports to the Group Sustainability Director, who is a member of the Group management. Issues pertaining to product development and consumer contact are managed locally in each country organisation. POLICIES S4-1 Policies related to consumers and end-users Scandi Standard has two policies related to impacts and risks for consumer information and biosafety. They are available to read in the table on page 90. All consumers are covered by the Quality and Food Safety Policy as well as the Clean Label Policy, which also govern impacts, risks and opportunities related to consumer information and biosafety. The Quality and Food Safety Policy forms the basis of our food-safety standard work. Since 2020, a Group-wide Clean Label Policy is in place. The policy is based on current legislation and describes our shared stance on healthy products and establishes a framework for product content, including product information. The policy is established in all countries and applies to all products and recipes within our own brands, which account for 38 per cent of Scandi Standard’s sales. As a tool for this work, each country has a database containing information on ingredients and their contents and composition. PROCESSES FOR COOPERATION AND REMEDIATION S4-2 Processes for engaging with consumers and end-users about impacts A shared system for managing end-consumer complaints is in place that is directly linked to our quality management system, thereby creating more efficient workflows and synergies. The system enables direct engagement with consumers and end-users, or legitimate representatives. Insights from contacts are integrated into decisions. Management is responsible for overall implementation, while local management is responsible for implementation at each facility. Continuous contact with consumers is maintained through local customer service departments as well as local and Group-wide quality depart- ments. Contact is taken when needed and not according to a set frequency. Contact also occurs through product development dialogues and indirectly through customers acting as a proxy for consumers. Contact is proactive but also takes place in the event of, for example, a quality incident. Internal and external stakeholder dialogues as well as the deviation management system are used to evaluate the effectiveness of contact. Contact leads to actions and improvements in food safety. S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns All of the company’s websites have a contact form where questions about products and processes can be submitted. Phone contact is also possible. All consumers can also contact their local food safety authorities, who can administrate contact with the company. All questions and complaints are traced, investigated and followed up by the quality departments or employees responsible for the contact forms. A whistle-blowing function has been established through a partnership with an external company to enable anonymous reporting of potential Code of Conduct violations. Reported cases are received and managed by a committee consisting of the Group’s managers for HR, finance and risk management The whistle-blowing system is available on Scandi Standard’s external website. The whistle-blowing system is handled by an independent third party, enabling anonymous and confidential reporting in accordance with the General Data Protection Regulation (GDPR). Further information about the whistle-blowing function is available under G1-1. Scandi Standard is involved with incident remediation and assesses the effectiveness of actions on a case-by-case basis through internal and external stakeholder dialogues and collaboration. Through internal and external stakeholder dialogues, as well as analysis of cases received, Scandi Standard investigates whether consumers are aware of and trust these structures and procedures. S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions Product quality and food safety are at the top of Scandi Standard’s priorities. Our certified management systems, continuous checks, quantifiable indicators and requirements for internal and external producers ensure that our own procedures do not contribute to material negative impacts on consumer and end-user health and safety. We work continuously to improve processes and governance, based on certified management systems. All of our production plants hold third-party certification in accordance with BRC or IFS, two international quality management standards for food safety. 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requirements on quality-assured working methods, buildings and equipment, risk analysis in accordance with Hazard Analysis and Critical Control Points (HACCP), product traceability, staff competence and hygiene procedures, as well as the verification of products and processes. Moreover, we comply with the specific requirements that different customers place on us as a company, or for a particular product or market. In order to strengthen the food safety culture, a yearly survey is conducted amongst all production employees, where participation rate and result is followed up on. This is a part of the 2030 targets and an average across sites is reported in the table on page 56. The risks of unwanted bacteria and quality deficiencies or food fraud when purchasing ingredients are challenges that are addressed on an ongoing basis. In recent years work related to food safety has been strengthened further with the leadership of a Head of Group Quality with responsibility for quality and product safety. We use a number of measurable indicators to monitor and control product quality and identify any non-conformance. These include temperature and cleanliness at the plants, the presence of bacteria, controls of finished products and complaints. We pay particular attention to checking for the presence of any pathogenic bacteria, i.e., bacteria that can cause illness. In our markets, our chickens must be salmonella-free, and campylobacter must be at the minimum level possible. Regular controls for both these bacteria are conducted in the chicken houses and upon the arrival of chickens to lairage. Campylobacter is a common bacteria found worldwide both in humans and in animals, including chickens. Salmonella is very rare in the Nordic countries but common in other parts of the world. Hand hygiene and cooking chicken properly are important for avoiding infection. Strict food safety requirements are applied to third-party producers. If a supplier is unable to meet these requirements, or if there is a risk to consumer health, the contract can be terminated. Implementing the action plans does not lead to any significant operational or capital expenses since it is part of continuous work with food safety. The time horizon for implementing actions extends to the target year 2030. No specific actions were concluded during the year since this is ongoing work. Remediation for those who have suffered harm from material negative impacts is evaluated continuously at the local level by someone with the appropriate authority as incidents arise. The results of ongoing actions are reflected in the food safety survey, and target follow-up is evaluated at Group- wide meetings for quality managers. Scandi Standard provides remediation in relation to actual material impacts, for example linked to critical complaints. The remediation process follows clear procedures established by the quality team. The effectiveness of the process in terms of implementation and outcomes is continuously evaluated through internal dialogues within quality teams both at Scandi Standard and at the local level. The effectiveness of risk management, defined as lower numbers of deviations and critical complaints, is followed up through measurement and review of critical complaints and deviations as well as internal and external food safety audits. TARGETS S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Targets related to consumers and end-users were set through internal stakeholder dialogues with representatives who have close contact with consumers and end-users in their daily work. Targets were not set through direct contact with consumers and end-users, but through internal proxies who are well-informed about food safety and who work closely with consumers. Scandi Standard applies a common definition and process for so called critical complaints. These complaints include recalls from customers or consumers, the presence of foreign objects in the product, allergens or incorrect content or sell-by dates. Assessments are made locally in the respective country and is calibrated on group level. The trend has been negative during the year, and 14 critical complaints were reported in 2024, compared to zero in 2023. When a critical complaint occur, root-causes are investigated to prevent similar issues to happen again. The presence of salmonella and campylobacter is measured as a percentage of infected flocks. In 2025, campylobacter was found in 14.4 per cent of flocks, which was slightly lower than the previous year and the long-term target which is 5–10 per cent. Salmonella has been found in 0.16 per cent of flocks, a continued low number within the target range. Clean Label Policy compliance is monitored on a monthly basis for three Group-wide indicators: the use of a flavour enhancer, monosodium glutamate (MSG/ E621), artificial colourings and artificial flavourings. The objective is for all of these to be zero by 2030. On average, E621 appeared in four Danish products per month during 2025, corresponding to 0.2% of the products sold under our own brands. Artificial colourants were used in one Norwegian product and in five Finnish products, representing 0.4%. Regarding artificial flavourings, a continued need remains in certain local products to meet specific taste preferences and to avoid the use of allergenic ingredients. Examples include pesto in Finland and smoke flavouring in Sweden. On average, artificial flavourings appeared each month in 26 products in Finland, Sweden and Norway, corresponding to 1.6% of our own-brand products. In addition to Group-wide work on the Clean Label Policy, the local product development organisations work actively to reduce product salt content and local targets are set according to local market conditions and expectations, with the overall goal of reducing salt use. S4 REPORTING PRINCIPLES Critical complaints In 2021, a new definition for critical complaints was introduced to provide clar- ification, after which only complaints related to food safety, consumer health and legislative requirements are included in reporting. This refers to serious deviations such as foreign objects (glass, metal, hard plastics) or allergens in finished products that could jeopardise food safety or damage the brand. Product recalls A product recall occurs when a product has already reached consumers and is found to pose a risk to health or safety (or is otherwise non-compliant with legislation). A recall follows a food safety and legal assessment and only applies to finished products. Salmonella, infected flocks The presence of salmonella is measured as a percentage of infected flocks and is weighted by the bird volume per country. Campylobacter The presence of campylobacter is measured as a percentage of infected flocks and is weighted by the bird volume per country. Product quality and food safety Goals for 2030 2025 2024 (Base year) 2021 Critical complaints1), number 0 14 0 7 Product recalls, number 0 2 2 6 Salmonella, infected flocks 0–0.5% 0.16% 0.3% 0.20% Campylobacter, infected flocks 5–10% 14.4% 17.0% 11.90% 1) These complaints include recalls from customers or consumers, the presence of foreign objects in the product, allergens or incorrect content or sell-by dates. Scandi Standard Annual and Sustainability Report 2025 | 83ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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G1 BUSINESS CONDUCT Description of impact, risks and opportunities Time horizon Attracting talent A negative corporate culture can make it difficult to recruit and retain talent, leading to increased costs. A positive work environment is essential for reducing these risks. Short and medium term Regulatory changes Coming legislation to limit the growth of chickens can lead to increased production costs and impact product price and availability. This highlights the need to monitor and influence political decisions through transparent, responsible dialogues with decision-makers to ensure that new rules are based on animal welfare as well as food security. Short, medium and long term Legal compliance Insufficient compliance with laws and anti-corruption policies can lead to fines as well as loss of trust or business opportunities. Short and medium term Risk Opportunities Negative impact SBM 3 Material impacts, risks and opportunities and their interaction with strategy and business model Business ethics and responsibility are core elements of Scandi Standard’s work. Scandi Standard strives to capitalise on every employee’s expertise and to promote an innovative work environment that reflects society at large as well as our customers’ needs. An inclusive and successful company culture is essential for securing future expertise. It is important to the company to build a culture based on strong ethical principles and a positive work environment guided by the Code of Conduct. Clear internal governance and values-driven leadership create the conditions for a sustainable corporate culture, including throughout the entire value chain. POLICIES G1-1 Business conduct policies and corporate culture All business conduct policies are listed in the table on page 90; topics covered include animal welfare, corruption and bribery, and relationships with suppliers. The Code of Conduct applies to all employees and representatives of Scandi Standard, including the Board. The Code of Conduct sets the framework for acting responsibly in terms of ethics, the environment, social issues and human rights. All employees get a walk-through of the code in the local language when commencing employment, and thereafter confirming that they understand what it entails. The training then takes place continuously every two years to ensure anchoring. In 2024, an updated version of Scandi Standard’s Code of Conduct was created and approved by the Board. The update has clearer definitions of applicability and processes, and the sections on, for example, bribery, corruption, competition law and human rights, were strengthened. Implementation of a digital training tool began in 2024 and in connection the training was updated. The majority of employees (80%), including office (98%) and production staff (76%), has completed the updated training. The internal steering documents are available on the Group’s intranet to all relevant personnel and to other stakeholders on the company website. Training in critical policies is also conducted through mandatory e-learning and in connection with the introduction of new employees. To further support con- tinuous learning and development, a new interactive learning and knowledge sharing platform has been implemented during the year. The internal steering documents are reviewed, updated and approved regularly with reference to, for example, changes in legislation, accounting standards, listing requirements and internal risk assessment. The whistle-blowing function is available for all of Scandi Standard’s employees and their representatives regardless of employment form, including consultants. It is also available to third parties upstream and downstream in the value chain, such as suppliers and customers. These parties can use the whistle-blowing function to report problems or concerns related to violations of Scandi Standard’s steering documents, such as the Code of Conduct, other policies, instructions and business conduct as well as corruption or bribery. The whistle-blowing function is available to third parties on the external web- site and information about it is made available and followed up by the function in dialogues with suppliers and customers. A third party investigates, follows up and classifies incoming cases. The function’s effectiveness is monitored through the annual Scandi Puls employee survey to ensure that employees feel comfortable using it. Information about the whistle-blowing function is included in the mandatory training for all Scandi Standard employees, provided through the internal training platform for office employees and in person for production employees. All reports are processed confidentially and no cases are investigated by those who could be affected or involved with the matter. The whistle-blowing team can ask follow-up questions through the anonymous reporting channel as needed, and no one from the team or anyone else involved in the investigation will attempt to identify the person reporting. The whistle-blowing policy makes it clear that employees in own operations and the upstream value chain, as well as downstream consumers and third parties, are protected from retaliation when using the whistle-blowing function. Corporate culture Scandi Standard endeavours to make the most of every employee’s potential and to promote a creative work culture that reflects our business environment and our customer groups. An attractive and winning culture is the key to safeguarding future skills supply. For Scandi Standard, it is essential to have a corporate culture based on strong ethical practices and a healthy working environment, for which standards are set by the Code of Conduct. Moreover, clear internal documentation and leadership in terms of corporate values can promote a healthy corporate culture in the value chain. Business conduct The Code of Conduct sets the framework for acting responsibly in terms of ethics, the environment, social issues and human rights. The following mechanisms are in place to identify, report and investigate problems with illegal behaviour or violations of the Code of Conduct or other internal rules: • Internal governing documents, including corporate go vernance and the Code of Conduct. • Active monitoring of regulatory changes, often thr ough trade organisations. Governance Scandi Standard Annual and Sustainability Report 2025 | 84ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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• Internal safety and health control systems. • Onboarding processes and training pr ogrammes for employees and managers. • Active work with employer marketing, including a research training programme. • Annual employee survey with follow-up, targeted measures, and succession planning. • We conduct regular supplier audits in accordance with our supplier risk assessment and management process. • Systematic work and communication to maintain a healthy corporate culture. • Whistle-blowing function to enable the reporting of illegal or unethical behaviour that violates the Group’s Code of Conduct. • Financial and accounting principles and the Group’s fr amework for internal control over financial reporting. • Audit, including follow-up of results. • Export control compliance. • Strategic reviews of business intelligence, control systems, employee satisfaction and ongoing development programmes. Corruption and bribery Scandi Standard strives to use an ethical and respectful approach in all busi- ness relationships. The Code of Conduct clarifies that zero tolerance applies to all forms of bribery and corruption and the Group also has a separate policy on bribery and corruption with further details and guidelines available for the relevant functions via the intranet. Employees at Scandi Standard must also act in an exemplary and responsible fashion to ensure the correct processing of information and to ensure the avoidance of any conflicts of interest. In addi- tion to the Code of Conduct, Scandi Standard has a specific corruption and bribery policy aligned with the United Nations Convention against Corruption. According to the policy, procurement functions are the most vulnerable to corruption and bribery. G1-5 Political influence and lobbying activities Scandi Standard engages through the local companies in local trade organ- isations. It is important to closely monitor upcoming laws and regulations where changes could potentially exert a significant financial influence on Scandi Standard’s operations. Scandi Standard actively engages in dialogue, through trade organisations or in-house, on issues deemed relevant, primarily linked to matters of animal welfare and climate. Group management is responsible for oversight of these activities, as well as each country’s local management team. The total monetary value of political contributions made in 2025 amounted to 0 SEK. The Code of Conduct states that no political donations or contributions may be made. Neither Scandi Standard nor any of its subsidiaries are on the EU Transparency Register or the equivalent in an EU member state. No one in Group management or on the Board over the course of the reporting period has held a comparable position at a government or supervisory authority in the two years prior to their appointment. TARGETS Scandi Standard has set targets related to inclusive culture and employee satisfaction, both of which are linked to the risk of attracting talent. The employee survey system was replaced in 2025, leading to a partial change in the methodology, assessment and scoring. This means that no follow-up has been conducted against the 2025 targets. The new employee survey system was only used for office employees in 2025, so it is not considered a reference point for setting a new baseline or target. New target figures based on the updated methodology will be set in 2026, when production as well as office employees have completed the employee survey in the new system. The survey is followed up and analysed at the Group and country level, and by each manager and their team. Results are followed up in meetings held by Group management and local management teams in order to assess effectiveness. Scandi Standard does not intend to set any targets for political influence and lobbying activities or for corruption and bribery due to the nature of the risks. G1 REPORTING PROCEDURES Incidents of corruption or bribery are calculated as the number of confirmed cases received through the whistleblowing function or formal police reports. BUSINESS CONDUCT APPROACH G1-3 Prevention and detection of corruption and bribery The corruption and bribery policy applies to all employees and is available on the intranet. All employees undergo basic training (via our digital tool) related to corruption and bribery through Scandi Standard’s Code of Conduct training course, including the Group management and Board. This training is also held continuously for high-risk employees. During 2025, 22 employees completed the training, corresponding to 100 per cent of high-risk employees. It addresses topics such as corruption, bribes, gifts and fraud. A specific, in-depth training course for addressing corruption and bribery will be devel- oped during 2026. Scandi Standard works with the prevention, detection and investigation of corruption and bribery allegations, as well as responses to the same, through processes for contracting, payments and internal controls. The individuals who investigate cases of corruption and bribery are independent of those involved. Results are presented to Group management and the Board, as necessary. METRICS G1-4 Incidents of corruption or bribery No violations of the procedures or standards to prevent corruption and bribery have been identified. Corruption and bribery 2025 2024 2021 Number of confirmed cases of corruption and bribery 0 0 0 The number of confirmed cases where own employees were dismissed or disciplined for corruption or bribery- related incidents 0 0 0 The number of confirmed incidents related to contracts with business partners that were terminated or not renewed related to corruption or bribery 0 0 0 Scandi Standard Annual and Sustainability Report 2025 | 85ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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G1 ANIMAL WELFARE Description of impact, risks and opportunities Time horizon Animal welfare A proactive approach and transparency regarding good animal welfare can create business opportunities. Raising awareness and educating the general public about animal welfare can attract investors and strengthen the brand’s reputation. Short, medium and long term Animal welfare Variations in animal welfare standards between regions can impact animal wellbeing, especially outside own operations. High internal standards help reduce risk. Short, medium and long term Animal welfare Even with strict regulatory compliance, there is an inherent risk of negative reputation in the industry. Failing to meet expected standards can have serious consequences. Poor animal welfare can damage reputation and result in financial losses, such as loss of business and investments. Short, medium and long term Risk Opportunities Negative impact IMPACT , RISKS AND OPPORTUNITIES Governance and strategy General principles for governance and the division of responsibilities related to sustainability are described on page 52. General information on Scandi Standard’s strategy and the integration of sustainability aspects in the strategy work is described on pages 52-54. Scandi Standard has two overarching pol- icies related to animal welfare and antibiotics usage that guide work with live animals. These are presented in the table on page 90. Scandi Standard held internal stakeholder dialogues with representative experts when developing these policies. Scandi Standard’s Sustainability Director has overall respon- sibility for the Group’s animal welfare policy and improvement work. In each market, the local management and local individual in charge of living animals are jointly responsible for implementation and follow-up. Each production site has a designated animal welfare coordinator, and all staff who handle live animals receive animal welfare training as part of their introduction. Impact, risk and opportunity management Healthy chickens efficiently convert feed into meat, and therefore, it is essential from several perspectives that the animals thrive and do not need unnecessary medication. No one benefits from a sick animal. While good animal welfare enables resource-efficient production of high-quality products, poor animal welfare entails a risk of increased disease, mortality and rejection, as well as media and reputational risks. Accordingly, animal welfare is an extremely material matter where Scandi Standard not only has a large potential impact, but one that also presents significant risks and opportunities. Our focus on continuous improvement forms the foundation for our work with animal welfare. Together with our contracted growers, Scandi Standard’s ambition is to be a driving force for good animal welfare throughout the industry and the value chain. Animal welfare legislation in the Nordic region is among the strictest in the world, and the Nordic approach is our starting point. Chickens are given every chance to stay healthy and absorb nutrients by applying a holistic approach, knowledge and high standards of handling, housing and feeding. Scandi Standard’s Animal Welfare Policy is based on the internationally recognised Five Freedoms of animal welfare and reflects what is required for chickens to thrive. The policy stipulates that we do not use genetic modifica- tion, antibiotics for preventative purposes, growth hormones or practice beak trimming. Requirements are also set for chicken houses and flock density, responsible transportation and stunning before slaughter. For Scandi Standard, it is important to have a holistic view of animal welfare, where several different aspects are important and where a combination of different metrics must be followed up to ensure good animal welfare. These aspects include the competence and commitment of growers, the quality of day-old chicks, feed quality, housing environment quality, the opportunity for natural behaviour, hybrid, loading and transport, and stunning and slaughter. These factors are described in the diagram to the right. ACTIONS Collaboration with growers, pen environments and feed In order to thrive and grow, the chickens must be able to move freely, have a clean chicken house and sufficient space. The threshold value for flock density, i.e., the permissible number of chickens in one and the same flock, varies depending on the plant and national legislation. Scandi Standard’s average density falls below the EU’s prescribed maximums for flock density and is adapted to animal welfare outcomes. This includes the straw bedding where chickens spend their time, which has a major impact on their health. Dry straw bedding is comfortable for the chickens, maintains their immune system and reduces the risk of spreading diseases. Chickens also require good lighting, ventilation, and equipment for feed and water. The health of the flocks is monitored on a daily basis, and the housing environment is measured and assessed using a number of metrics such as temperature, air humidity and air quality. The quality of the bedding is checked by examining the condition of the foot pads, which is registered for each flock of chickens upon arrival at the slaughterhouse. Scandi Standard has long-term collaborations with selected growers in each country. The growers’ knowledge, understanding and care for chickens is the most important factor for guaranteeing good animal welfare and for creating conditions conducive to healthy, thriving and growing chickens. The quality of Animal welfare Loading and transport Lairage and stunning Grower skills and commitment Day-old chick quality Feed quality Housing environment quality Natural behaviour Breed characteristics Scandi Standard Annual and Sustainability Report 2025 | 86ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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the day-old chick greatly affects the chicken’s health and growth for the rest of its life. Choosing good parent birds and handling the fertilised eggs correctly during the incubation period ensures that the chicks are strong and healthy from the onset. Feed composition is an important part of our collaboration with the growers. Nutrient content and quality have a major impact both on the health of chickens and on the efficiency of feed use. Chickens are very good at converting feed into meat, and feed efficiency is a direct indicator of the quality of the feed, and how well the chickens are being cared for. All feed is produced using carefully selected ingredients, with wheat and soy being major components. Our operations in Ireland have their own feed experts and local feed mill, while in other countries we collaborate with external feed suppliers whom our external growers purchase feed from. The use of feed with the presence of genetically modified organisms (GMOs), in this case soy and corn, is widely discussed throughout the agricultural industry. Scandi Standard has chosen to adhere to local conditions and customer requirements and currently requires the use of GMO-free feed in Sweden and Norway, and organic chicken in Denmark. In 2021, Scandi Standard established a Centre of Excellence with the aim of developing knowledge, work methods and processes around animal welfare and chicken rearing, and disseminating this information in our value chain and among growers. During the first year, the focus was on developing a lower climate impact feed by using local ingredients to replace a significant amount of the soy protein in the feed. In 2022 and 2023, the new feed was tested in both Finland and Sweden, with promising results. In 2024 and 2025, testing has continued to varying degrees in Finland, Denmark and Ireland. The primary focus for the Centre of Excellence has been driving Scandi Standard’s Chicken Quality Programme – a results-based improvement programme to raise the quality of the chickens that are delivered by Scandi Standard’s contracted growers. Each grower is measured using eleven KPIs linked to performance within animal welfare, quality, food safety and productivity. These provide a clear overview of how each rearing house operated by Scandi Standard’s growers is performing. Based on the results, Scandi Standard then collabo- rates with the grower to develop customised action packages for the lowest performing houses. The aim is to systematically and continuously improve operations, by inserting concrete measures where they make the most difference. To date, the programme has been implemented in Ireland, Finland and Denmark and the aim is to implement it throughout the Group. This is beneficial for chickens, growers, Scandi Standard and ultimately, consumers. No significant operational or capital expenditure is required to complete the actions to be implemented by the target year 2030. Ethics for transport and slaughter Animal ethics are a high priority in the transport and slaughter of the chickens. To achieve a calm environment, the chickens are collected prior to slaughter by trained staff in adapted vehicles. Vehicles with temperature-controlled ventilation are used in countries with cold climates. Transport times can be kept short because broiler growers are generally located close to the production plants. The average transport distance, weighted by the bird volume in the Group’s countries is 93 kilometres, a distance that takes 1–2 hours and is well below the statutory maximum time, which in Sweden, for example, is eight hours. Transport times and arrival times are planned and registered to ensure that all chickens are handled within set time frames, and that they are always slaughtered on the day of transportation. Upon arrival, Denmark – comparison between conventional and slow growing broiler Rearing mortality (%) Foot score Feed conversion ratio (FCR) Conventional 4.1 1.5 1.47 Slow growing 3.6 0.2 1.61 In the table, a comparison between a conventional (Ross308) and a slow growing (Rustic Gold) broiler hybrid is presented. The data reported relates to Scandi Standard’s Danish operations during 2025 since both hybrids were produced at large scale under comparable circumstances. The results show small differences in rearing mortality and foot scores. Use of antibiotics, (% of treated flocks) Goals for 2030 2025 2024 (Base year) 2021 Scandi Standard <1% 7.6% 4.4% 5.20% Denmark 0.7% 0.4% 0.10% Finland 0.0% 0.0% 0.00% Ireland 18.2% 14.3% 18.10% Lithuania 51.7% n/a n/a Norway 0.0% 0.0% 0.00% Sweden 0.7% 0.2% 0.70% Animal-welfare indicators Goals for 2030 2025 2024 (Base year) 2021 Animal-welfare indicator (foot score) <5 7.7 6.5 9.3 Feed efficiency, FCR kg feed/kg live weight 1.49 1.49 1.52 Rearing mortality <3.5% 3.9% 3.8% 3.60% Transport mortality (DOA) <0.13% 0.13% 0.10% 0.10% Feed efficiency includes the conventional (Ross308) broiler hybrid. the chickens are inspected both by Scandi Standard’s own staff and by an independent veterinary surgeon. The wings are checked as an indicator of how well the loading was managed and wing damage is followed up systematically to improve animal welfare but also to ensure that as much of the chicken as possible can be used for food production. All chickens are stunned before slaughter. Controlled atmosphere stunning (CAS) is used at most Scandi Standard production plants, as well as electrical stunning in Denmark and Lithuania. CAS has a number of advantages in terms both of animal welfare and of meat quality. Working systematically to lower antibiotics usage Increased antibiotic resistance is a global health challenge and we believe that Scandi Standard has an important role to play in minimising the use of antibiotics in food production, particularly when acquiring and integrating operations that are beyond the Nordic region into the Group. Scandi Standard has a very strict policy on the use of antibiotics and other types of medication. In accordance with current Nordic legislation, antibiotics must not be used as a preventive measure in the rearing process, unlike in many other countries. Only sick animals may be treated, following a decision by a veterinarian. The use of antibiotics among Nordic growers is also very low – close to zero – which is a sign of good animal husbandry. Outbreak of bird flu Avian influenza (bird flu) is a viral disease found in wild birds that can spread to domestic birds, and outbreaks can affect egg and chicken producers. However, the virus is not thought to cause any serious symptoms in humans and consumers do not need to be concerned about whether chicken products Scandi Standard Annual and Sustainability Report 2025 | 87ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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are safe to eat. Outbreaks of bird flu leads to extensive shutdowns in order to prevent wider transmission to new flocks. There was one outbreak of bird flu at a contracted parent bird farm in Sweden during the year. Local Scandi Standard teams work closely with concerned growers and relevant authorities to ensure that the right measures are implemented if outbreaks occur. This includes setting up zonal systems to guarantee disease control and prevent growers and the poultry industry from being hit harder than necessary. TARGETS The targets for 2030 are based in Scandi Standard’s animal welfare and anti- biotics policies. They were set based on internal stakeholder dialogues with representatives who are well-informed about animal welfare and with internal proxies. The targets cover own operations as well as the upstream value chain, which in this case means contracted growers. We have also made determined efforts to significantly reduce the use of antibiotics in our Irish operations, from around 70 per cent when the company was acquired in 2017, to 18.2 per cent for 2025. Performance temporarily deteriorated in 2022, but has returned to a positive trend after the second half of 2023 and is now back at the same low levels as before 2022. This was a consequence of a disciplined effort to improve the quality of day-old chicks as well as to strengthen physical conditions for the chickens during the first 48 hours in the rearing house, for example, by optimising the bedding. Work continues on minimising the use of antibiotics in the operations in Ireland and the long-term Group target is for the percentage of flocks treated with antibiotics to be lower than one per cent by 2030, and for the foot score to be below five. In the Lithuanian figure, both chickens slaughtered at the company’s own slaughterhouse in Joniŝkis and chickens sold externally are included. The quality of the day-old chicks varies between the two populations, which contributes to a higher use of antibiotics attributed to chickens externally sold. The antibiotics use was 10.2 percent for the chickens slaughtered in Joniŝkis and 100 per cent for externally sold chickens. The targets are not based on any underlying assumptions and there have been no changes in methodology, measurement principles or scope during the reporting period. The targets are not science-based and are instead based on the following reporting principles used for own disclosures on animal welfare. METRICS G1 ANIMAL WELFARE REPORTING PRINCIPLES Use of antibiotics Use of antibiotics is measured as the share of treated flocks. Foot score The foot score is a leading metric of animal welfare, which is measured manually for 100 randomly chosen birds per flock arriving at lairage. Feet are rated 0, 1 or 2, where each point is weighted at 0, 0.5 or 2, respectively. The number of birds in each category is multiplied by the weight and the sum is then multiplied by 100 and divided by the total number of birds assessed. The resulting score ranges from 0 to 200, where a lower value indicates better animal welfare. The consolidated number is weighted by the bird volume per country. Feed conversion ratio Calculated by dividing the amount of feed required to produce the accepted live weight by the accepted live weight and is weighted by the bird volume per country. Mortality Mortality in rearing and transport is calculated as the percentage of birds that do not survive the rearing or transport processes and is weighted by the bird volume per country. Scandi Standard Annual and Sustainability Report 2025 | 88ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Sustainability Statement General information Environment Social Governance
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Sustainability notes EU Taxonomy DISCLOSURES PURSUANT TO ARTICLE 8 OF REGULATION (EU) 2020/852 (TAXONOMY REGULATION) Financial year 2025 Proportion of Taxonomy eligible activities Taxonomy aligned activities Proportion of Taxonomy aligned activities Breakdown by environmental objectives of Taxonomy aligned activities Proportion of enabling activities Proportion of transitional activities Not assessed activities considered non-material Taxonomy aligned activities in previous financial year 2024 Proportion of Taxonomy aligned activities in previous financial year 2024KPI Total Climate Change Mitigation Climate Change Adaptation Water Circular Economy Pollution Bio- diversity (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) MSEK % MSEK % % % % % % % % % % MSEK % Turnover 14,105 0.0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0% CapEx 861 0.0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 8.9% 0 0% OpEx 347 11.8% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0% Proportion of turnover, CapEx, OpEx from products and services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering year 2025 (summary KPIs). OpEx 2025 Taxonomy eligible KPI (Proportion of Taxonomy eligible Turnover/ CapEx/OpEx) Taxonomy aligned KPI (monetary value of Turnover/ CapEx/OpEx) Taxonomy aligned KPI (Proportion of Taxonomy eligible Turnover/ CapEx/OpEx) Breakdown by environmental objectives of Taxonomy aligned activities Enabling activity Transitional activity Proportion of Taxonomy aligned in Taxonomy eligibleEconomic Activities Code Climate Change Mitigation Climate Change Adaptation Water Circular Economy Pollution Bio- diversity (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) % MSEK % % % % % % % (E where applicable) (T where applicable) % Renovation of existing buildings CCM 7.2 CE 3.2 11.8% 0 0% 0% 0% 0% 0% 0% 0% 0% Sum of alignment per objective 0% 0% 0% 0% 0% 0% 0% Total OpEx 11.8% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Proportion of turnover, CapEx, OpEx from products and services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering year 2025 (activity breakdown). Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 89ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Policy Main content of the policy Policy’s scope Ultimately responsible Relevant third-party standards Consideration of stakeholders ESRS Codification Code of Conduct The Code of Conduct sets out the approaches and guidelines for environmental, economic and social responsibility. Own operations and own workforce. Board of Directors International Labour Organization, the core conventions of the ILO, the UN Global Compact, the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights. Considered stakeholders are presented on page 57. S1, G1, E1–E5 Supplier Code of Conduct The Supplier Code of Conduct sets out the approaches and guidelines for environmental, economic and social responsibility that Scandi Standard expects of its suppliers. Upstream value chain. Board of Directors The core conventions of the ILO. Considered stakeholders are presented on page 57. S2, S3, G1 Environmental Policy The Policy aims to regulate how Scandi Standard works with environmental issues and describes material areas such as climate change, pollution, water and marine resources, biodiversity and ecosystems, and resource use and circular economy. Own operations and upstream value chain. Board of Directors Certifications for responsible soy production, including the Round Table on Responsible Soy Association (RTRS) and ProTerra; Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, Science Based Targets initiative (SBTi), ISO 14001. Considered stakeholders are presented on page 57. E1–E5 Animal Welfare policy The Policy sets out our approach to animal welfare, including matters such as grower competence and commitment, the quality of day old chicks, feed quality, pen environment, the opportunity for natural behaviour, breeding, loading and transport, and stunning and slaughter. Own operations and upstream value chain. Board of Directors The five freedoms of animal welfare. Considered stakeholders are presented on page 57 G1 Antibiotics Policy The Policy sets out Scandi Standard’s guidelines for the use of antibiotics in animal husbandry. Own operations and upstream value chain. Board of Directors Considered stakeholders are presented on page 57. G1 Group Clean Label Policy Business-wide guidelines covering additives and nutrient content in our products and product development. Own operations, and upstream and downstream value chains. Board of Directors Considered stakeholders are presented on page 57. S4 Quality and Food Safety Policy The Policy sets out the focus areas for quality and food safety in own operations as well as for end-consumers of Scandi Standard’s products. Own operations, and upstream and downstream value chains. Board of Directors BRC, IFS and FSSC. Considered stakeholders are presented on page 57. S4 Whistle-blower Policy The whistle-blowing process. Own operations, and upstream and downstream value chains. Board of Directors Considered stakeholders are presented on page 57. G1 Health and Safety Policy The policy outlines responsibilities and commitments in the workplace for health and safety. Own operations. Board of Directors Considered stakeholders are presented on page 57. S1 Corruption and bribery policy The Policy sets out the responsibilities and obligations related to corruption and bribery Own operations. Board of Directors Considered stakeholders are presented on page 57. G1 Policies adopted to manage material sustainability matters Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 90ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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GHG Protocol Gross Scopes 1, 2, 3 and Total GHG emissions Total emissions (tonnes CO2e) Change Energy and industry emissions (tonnes CO2e) FLAG emissions (tonnes CO2e) Land use Land use change (Base year) 2021 2024 2025 2024-2025 (Base year) 2021 2024 2025 (Base year) 2021 2024 2025 (Base year) 2021 2024 2025 Scope 1 Fugitive emissions 4,392 4,963 5,067 2% 4,392 4,963 5,067 – – – – – – Mobile emissions 2,296 2,318 3,275 41% 2,296 2,318 3,098 – – 177 – – – Stationary combustion 11,700 11,426 13,161 15% 11,700 11,426 11489 – – 1,672 – – – Land use 427 494 2,087 322% – – – 427 494 2,087 – – – Total Scope 1 18,815 19,201 23,590 23% 18,388 18,706 19,654 427 494 3,936 – – – Scope 2 Electricity (location-based) 12,148 12,041 9,782 –19% 12,148 12,041 9,782 – – – – – – Electricity (market-based) – – 4,849 – – – 4,849 – – – – – – District heating (location-based) 981 716 264 –63% 981 716 264 – – – – – – District heating (market-based) 981 716 264 –63% 981 716 264 – – – – – – Total Scope 2 (location-based) 13,129 12,757 10,046 –21% 13,129 12,757 10,046 – – – – – – Total Scope 2 (market-based) 981 716 5,114 614% 981 716 5,114 – – – – – – Total Scope 1 and 2 (location-based) 31,944 31,957 33,636 5% 31,518 31,463 29,700 427 494 3,936 – – – Total Scope 1 and 2 (market-based) 19,796 19,917 28,704 44% 19,369 19,422 24,767 427 494 3,936 – – – Scope 3 Category 1 – Purchased Goods & Services 899,849 859,800 949,308 10% 87,642 84,723 85,644 411,245 391,434 262,038 400,962 383,643 601,626 Category 2 – Capital Goods 12,382 14,114 18,180 29% 12,382 14,114 18,180 – – – – – – Category 3 – Fuel- and energy related activities 9,966 6,158 6,455 5% 9,966 6,158 6,455 – – – – – – Category 4 – Upstream transportation & distribution 10,291 17,555 23,663 35% 10,291 17,555 23,663 – – – – – – Category 5 – Waste generated in operations 594 718 722 1% 594 718 722 – – – – – – Category 6 – Business travel 119 589 520 –12% 119 589 520 – – – – – – Category 7 – Employee commuting 761 2,794 2,978 7% 761 2,794 2,978 – – – – – – Category 9 – Downstream transportation & distribution 8,957 9,842 13,383 36% 8,957 9,842 13,383 – – – – – – Category 10 – Processing of sold products 122 1,040 1,284 23% 122 1,040 1,284 – – – – – – Category 12 – End-of-life treatment of sold products 467 400 329 –18% 467 400 329 – – – – – – Category 15 – Investments 408 5,292 5,477 3% 408 5,292 5,477 – – – – – – Total Scope 3 943,916 918,302 1,022,298 11% 131,708 143,225 158,634 411,245 391,434 262,038 400,962 383,643 601,626 Total CO2e (location-based) 975,860 950,259 1,055,934 11% 163,226 174,688 188,334 411,672 391,928 265,974 400,962 383,643 601,626 Total CO2e (market-based) 963,712 938,219 1,051,001 12% 151,077 162,647 183,401 411,672 391,928 265,974 400,962 383,643 601,626 Biogenic emissions and out of scope Scope 1 (biofuels, including straw and wood chips) 51 – 120 – Scope 2 (purchased steam generated with wood chips) 4 1,692 54 –97% Scope 3 (transport with HVO) 1,230 1,927 1,679 –13% Scope 3 (use of sold products) 32,506 35,716 38,926 9% 32,506 35,716 38,926 – – – – – – Total location-based and market-based carbon emissions, as well as total Scope 3 emissions and emissions in Scope 3 Category 1 for 2024, have been updated compared to previously published figures Greenhouse Gas Emissions Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 91ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Company-specific metrics E1 Climate target FLAG according to SBTi E2 Water use per kg product Wastewater – Water discharges per destination E4 Share of soy in feed Share of certified soy in feed E5 Plastic intensity Percentage of trays made of recycled plastic Recycled material in packaging Material in packaging that can be recycled Plastic used in packaging Food waste in production S1 Lost Time Injuries (L TIFR) Code of Conduct – implementation rate Reports to the whistle-blowing function Women in executive positions S2 Supplier Code of Conduct signed by direct suppliers Supplier Code of Conduct signed by indirect suppliers Supplier Code of Conduct signed by high-risk suppliers Active external sustainability assessment of high-risk suppliers S4 Critical complaints Product recalls Salmonella, infected flocks Campylobacter, infected flocks G1 Use of antibiotics (% of treated flocks) Foot score Feed conversion ratio Mortality Incorporation by reference Disclosure requirements Section of the report Page Description GOV-1 Experience relevant to the sectors, products and geographic locations of the undertaking Corporate governance report 39-40 Board of directors and group management GOV-3 Sustainability-related incentive programmes and remuneration Financial information 117 Note 5 GOV-5 Process for risk management and internal controls over sustainability reporting Corporate governance report 37-38 Internal control over financial and sustainability reporting ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Financial information 109 Note 1 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities – Business conduct Corporate governance report 37-38 Internal control over financial and sustainability reporting Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 92ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Disclosure Requirement Title Page GENERAL DISCLOSURES General disclosures BP-1 General basis for preparation of sustainability statements 52 BP-2 Disclosures in relation to specific circumstances 52 GOV-1 The role of the administrative, management and supervisory bodies 52-53 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 52-53 GOV-3 Integration of sustainability-related performance in incentive schemes 53 GOV-4 Statement on due diligence 54 GOV-5 Risk management and internal controls over sustainability reporting 54 SBM-1 Strategy, business model and value chain 54-56 SBM-2 Interests and views of stakeholders 57 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 58-59 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 60-61 IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement 61, 93-98 ENVIRONMENTAL INFORMATION Climate change SBM-3 E1 Material impacts, risks and opportunities and their interaction with strategy and business model 63-64 GOV-1 E1 The role of the administrative, management and supervisory bodies 52 IRO-1 E1 Description of the processes to identify and assess material climate-change-related impacts, risks and opportunities 60-61 E1-1 Transition plan for climate change mitigation 62-63 E1-2 Policies related to climate change mitigation and adaptation 64, 90 E1-3 Actions and resources in relation to climate change policies 64 E1-4 Targets related to climate change mitigation and adaptation 64 E1-5 Energy consumption and mix 64-65 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 65-66, 91 ESRS index Disclosure Requirement Title Page Pollution SBM-3 E2 Material impacts, risks and opportunities and their interaction with strategy and business model 65 IRO-1 E2 Description of the processes to identify and assess material pollution- related impacts, risks and opportunities 61 E2-1 Policies related to pollution 66, 90 E2-2 Actions and resources related to pollution 66-67 E2-3 Targets related to pollution 67 E2-4 Pollution of water 67 Company-specific targets and metrics 67 Biodiversity and eco- systems SBM-3 E4 Material impacts, risks and opportunities and their interaction with strategy and business model 68 E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model 68 E4-2 Policies related to biodiversity and ecosystems 68-69, 90 E4-3 Actions and resources related to biodiversity and ecosystems 69 E4-4 Targets related to biodiversity and ecosystems 69 E4-5 Impact metrics related to biodiversity and ecosystems change 69 Company-specific targets and metrics 69 Resource use and circular economy SBM-3 E5 Material impacts, risks and opportunities and their interaction with strategy and business model 70 IRO-1 E5 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 61 E5-1 Policies related to resource use and circular economy 70, 90 E5-2 Actions and resources related to resource use and circular economy 70 E5-3 Targets related to resource use and circular economy 70-71 E5-4 Resource inflows 71-72 E5-5 Resource outflows 71-72 Company-specific targets and metrics 71-72 Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 93ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Disclosure Requirement Title Page SOCIAL Own workforce SBM-3 S1 Material impacts, risks and opportunities and their interaction with strategy and business model 73 S1-1 Policies related to own workforce 73, 90 S1-2 Processes for engaging with own workforce and workers’ representatives about impacts 73-74 S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns 74 S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 74-75 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 75 Company-specific targets and metrics 74 S1-6 Characteristics of the undertaking’s employees 75-76 S1-7 Characteristics of non-employees in the undertaking’s own workforce 76 S1-8 Collective bargaining coverage and social dialogue 76-77 S1-9 Diversity metrics 77 S1-10 Adequate wages 77 S1-13 Training and skills development metrics 77 S1-14 Health and safety metrics 77-78 S1-16 Remuneration metrics (pay gap and total remuneration) 78 S1-17 Incidents, complaints and severe human rights impacts 78 Workers in the value chain SBM-3 S2 Material impacts, risks and opportunities and their interaction with strategy and business model 79 S2-1 Policies related to value chain workers 79, 90 S2-2 Processes for engaging with value chain workers about impacts 80 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 80 S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions 80-81 S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 81 Company-specific targets and metrics 81 Disclosure Requirement Title Page Consumers and end- users SBM-3 S4 Material impacts, risks and opportunities and their interaction with strategy and business model 82 S4-1 Policies related to consumers and end-users 82, 90 S4-2 Processes for engaging with consumers and end-users about impacts 82 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 82 S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 82-83 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 83 Company-specific targets and metrics 83 GOVERNANCE Business conduct SBM-3 G1 Material impacts, risks and opportunities and their interaction with strategy and business model 84 GOV-1 G1 The role of the administrative, management and supervisory bodies 52 IRO-1 G1 Description of the processes to identify and assess material impacts, risks and opportunities related to business conduct matters 61 G1-1 Business conduct policies and corporate culture 84-85, 90 G1-3 Prevention and detection of corruption and bribery 85 G1-4 Incidents of corruption or bribery 85 G1-5 Political influence and lobbying activities 85 Company-specific targets and metrics 86-88 Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 94ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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IRO-2 table Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Non-material Page and para- graph reference ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816, Annex II Material Page 52-53 §21(d) ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II Material Page 52-53 §21(e) ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 of Table #3 of Annex 1 Material Page 54 §30 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) Indicator number 4 of Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Non-material ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Non-material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818, Article 12(1); Delegated Regulation (EU) 2020/1816, Annex II Non-material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1); Delegated Regulation (EU) 2020/1816, Annex II Non-material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1). Material Page 62 §14 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 Material Page 62 §16(g) ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6. Material Page 64 §34 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex I Material Page 64 §38 ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material Page 64 §37 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Material Page 64 §40-43 Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 95ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Non-material Page and para- graph reference ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) Material Page 65 §44 ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicator number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1). Material Page 65 §44 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1). Non-material ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II; Delegated Regulation (EU) 2020/1816, Annex II Material, phase-in ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk. Material, phase-in ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Material, phase-in ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book – Climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral Material, phase-in ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Material, phase-in ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Material Page 67 §28 ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Non-material ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Non-material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Non-material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Non-material ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Non-material ESRS 2- SBM 3 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Material Page 68 §16(a) ESRS 2- SBM 3 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Material Page 68 §16(b) Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 96ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Non-material Page and para- graph reference ESRS 2- SBM 3 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Material Page 68 §16(c) ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 Material Page 68 §24(b) ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Material Page 68 §24(c) ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Material Page 68 §24(d) ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Material Page 72 §37(d) ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Material Page 72 §39 ESRS 2 - SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex 1 Material Page 73 §14(f) ESRS 2 - SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex 1 Material Page 73 §14(g) ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Material Page 73 §20 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II Material Page 73 §21 ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Material Page 73 §22 ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I Material Page 73 §23 ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I Material Page 74 §32(c) ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material Page 77 §88(b,c) ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I Material Page 77 §88(e) ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material Page 78 §97(a) ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Material Page 78 §97(b) ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I Material Page 78 §103(a) ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 104 (a Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Material Page 78 §104(a) ESRS 2- SBM-3 - S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Material Page 79 §11(b) ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Material Page 79 §17 ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 Material Page 79 §18 ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator No. 10 Table 1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818 Art 12(1) Material Page 79 §19 Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 97ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Non-material Page and para- graph reference ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Material Page 79 §19 ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex 1 Material Page 80 §36 ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Non-material ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818 Art 12(1) Non-material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Non-material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Non-material ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator No. 10 Table 1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818 Art 12(1) Non-material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 Non-material ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex 1 Non-material ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Non-material ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Material Page 85 §24(a) ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 Material Page 85 §24(b) Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 98ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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TCFD content index Governance Strategy Risk management Metrics & targets The organisation’s oversight of climate-related risks and opportunities. Information of material importance in terms of the impact and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning. How the organisation identifies, assesses and manages climate- related risks. Metrics and targets used to assess and manage climate-related risks opportunities. Recommended disclosures a) Description of the Board’s oversight of climate-related risks and opportunities. a) Description of identified climate-related risks and opportunities. a) Description of the organisation’s processes for identifying and assessing climate-related risks. a) Description of the organisation’s Indicators for assessing climate- related risks and opportunities. Pages 52-53 Pages 59 and 63 Pages 60-61 Pages 60-61 b) Description of the management’s role in assessing and managing climate-related matters. b) Description of the impact of climate-related risks and opportunities on business strategy and financial planning. b) Description of the organisation’s processes for managing climate- related risks. b) Reporting of Scope 1, 2 and 3 emissions pursuant to the Greenhouse Gas Protocol. Pages 52-53 Pages 58, 63-64 Pages 62-64 Pages 65-66, 91 c) Description of the organisation’s preparedness to realign its strategy given different climate-related scenarios. c) Description of the integration of the above processes into the organisation’s general risk management. c) Description of the organisation’s targets for managing climate- related risks and opportunities. Pages 58, 62-63 Page 47 Pages 56, 63-64 In spring 2023, an analysis was conducted according to the Taskforce on Climate-related Financial Disclosures (TCFD) reporting framework, whereby the risks and opportunities linked to climate change were identified and measured. Since completing the analysis in 2023, Scandi Standard has reported in line with the TCFD. Full reporting of risks and opportunities as well as the quantification thereof can be found in the Climate Transition Plan. Sustainability Statement General information Environment Social Governance Scandi Standard Annual and Sustainability Report 2025 | 99ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Consolidated financial statements 101 Parent Company financial statements 105 Notes to the consolidated financial statements Note 1 Accounting policies 107 Note 2 Significant judgements, accounting estimates and assumptions 112 Note 3 Segment reporting 113 Note 4 Breakdown of revenue 114 Note 5 Employees and employee benefits expenses 115 Note 6 Depreciation, amortisation and impairment of intangible assets and property, plant, equipment and rights-of-use assets 118 Note 7 Fees and reimbursement to auditors 118 Note 8 Finance income and finance expenses 119 Note 9 Exchange differences affecting income 119 Note 10 Taxes 119 Note 11 Intangible assets 121 Note 12 Property, plant and equipment 122 Note 13 Rights-of-use assets 123 Note 14 Participations in associated companies 123 Note 15 Non-current financial assets 124 Note 16 Biological assets 124 Note 17 Inventory 124 Note 18 Trade receivables and other receivables 124 Note 19 Current interest-bearing assets and cash and cash equivalents 125 Note 20 Equity 125 Note 21 Interest-bearing liabilities 125 Note 22 Financial instruments and financial risk management 126 Note 23 Pensions 130 Note 24 Other provisions 132 FINANCIAL INFORMATION Note 25 Trade payables and other current liabilities 132 Note 26 Related party transactions 132 Note 27 Pledged assets and contingent liabilities 132 Note 28 Acquisitions and divestments 133 Note 29 Notes to the statement of cash flows 134 Note 30 Significant events after the end of the financial year 134 Notes to the Parent Company financial statements Note 31 Fees and reimbursement to auditors 135 Note 32 Pledged assets and contingent liabilities 135 Note 33 Investments in subsidiaries 135 Note 34 Proposed appropriation of earnings 135 The Board of Directors’ and the Managing Director’s certification 136 Auditor’s report 137 Scandi Standard Annual and Sustainability Report 2025 | 100 ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER
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Consolidated financial statements Consolidated income statement MSEK Note 2025 2024 1, 2, 3, 26 Net sales 4 14,083 13,024 Other operating revenues 4 46 42 Changes in inventories of finished goods and work in progress 63 7 Raw materials and consumables –8,567 –7,879 Cost of personnel 5 –2,875 –2,640 Depreciation, amortisation and impairment 6 –448 –425 Other operating expenses 7, 9 –1,702 –1,622 Share of income of associates 14 3 3 Operating income 603 509 Finance income 8, 9 3 4 Finance expenses 8, 9 –153 –158 Income after finance net 452 354 Tax on income for the year 10 –86 –80 Income for the year 367 275 Whereof attributable to: Shareholders of the parent company 367 275 Non-controlling interests – – Average number of outstanding shares 65,393,422 65,327,164 Earnings per share before dilution, SEK 5.61 4.20 Earnings per share after dilution, SEK 5.61 4.20 Number of shares at the end of the period 66,060,890 66,060,890 Consolidated statement of comprehensive income MSEK Note 2025 2024 Income for the year 367 275 Other comprehensive income Items that will not be reclassified to the income statement Actuarial gains and losses in defined benefit pension plans 23 10 18 Tax on actuarial gains and losses 23 –2 –4 Total 8 14 Items that will or may be reclassified to the income statement Cash flow hedges 4 4 Currency effects from conversion of foreign operations –156 70 Income from currency hedging of foreign operations 0 –8 Tax attributable to items that will be reclassified to the income statement 0 –1 Total –152 65 Other comprehensive income for the year, net of tax –144 79 Total comprehensive income for the year 223 354 Whereof attributable to: Shareholders of the Parent Company 223 354 Non-controlling interests – – Scandi Standard Annual and Sustainability Report 2025 | 101ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Consolidated balance sheet MSEK Note 31 dec 2025 31 dec 2024 1, 2, 3, 26, 27, 32 ASSETS Non-current assets Goodwill 11 913 961 Other intangible assets 11 966 991 Property, plant and equipment 12 2,726 2,464 Right-of-use assets 13 273 301 Participations in associated companies 14 54 55 Surplus in funded pensions 23 74 69 Financial assets 15 16 8 Deferred tax assets 10 69 78 Total non-current assets 5,092 4,928 Current assets Biological assets 16 152 128 Inventory 17 829 831 Trade receivables and other receivables 18 1,067 1,043 Other short-term receivables 18 139 124 Prepaid expenses and accrued income 18 88 115 Derivative instruments financial 22 – 2 Cash and cash equivalents 19 279 109 Total current assets 2,553 2,352 TOTAL ASSETS 7,646 7,279 MSEK Note 31 dec 2025 31 dec 2024 1, 2, 3, 26, 28, 32, 34 EQUITY AND LIABILITIES Shareholder’s equity Share capital 1 1 Other contributed equity 257 420 Reserves 152 304 Retained earnings 2,266 1,886 Capital and reserves attributable to owners 2,677 2,611 Non-controlling interests – – Total equity 20 2,677 2,611 Liabilities Non-current liabilities Non-current interest-bearing liabilities 21, 22 2,021 1,733 Non-current leasing liabilities 21, 22 217 249 Derivative instruments financial 21, 22 4 – Derivative instruments operational 21, 22 1 1 Provisions for pensions 23 3 3 Other non-current provisions 24 9 13 Deferred tax liabilities 10 169 179 Other non-current liabilities 22 74 77 Total non-current liabilities 2,497 2,255 Current liabilities Current leasing liabilities 21, 22, 25 70 64 Derivative instruments financial 21, 22 0 – Derivative instruments operational 21, 22 3 13 Trade payables 25 1,498 1,532 Tax payables 10 51 45 Other current liabilities 22, 25 82 82 Accrued expenses and prepaid income 22, 25 769 677 Total current liabilities 2,471 2,413 TOTAL EQUITY AND LIABILITIES 7,646 7,279 Scandi Standard Annual and Sustainability Report 2025 | 102ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Consolidated statement of changes in equity Equity attributable to the owners of the Parent Company MSEK Note Share capital Other contributed equity Hedge reserve Translation reserve Retained earnings Equity attributable to the owners of the Parent Company Non- controlling interests Total equity 20 Closing balance Dec 31, 2023 1 571 –16 255 1,588 2,398 – 2,397 Opening balance Jan 1, 2024 1 571 –16 255 1,588 2,398 – 2,397 Income for the year 275 275 275 Actuarial gains and losses on pension plans 18 18 18 Cash flow hedges 4 4 4 Exchange differences on translation of foreign operations 70 70 70 Net gain on hedge of net investments in foreign operations –8 –8 –8 Tax relating to components of other comprehensive income 0 –4 –4 –4 Other comprehensive income for the year, net of tax 4 62 289 354 354 Dividend –150 –150 –150 Long term incentive programs 10 10 10 Transactions with owners –150 10 –140 –140 Closing balance Dec 31, 2024 1 420 –13 317 1,886 2,611 – 2,611 Opening balance Jan 1, 2025 1 420 –13 317 1,886 2,611 – 2,611 Income for the year 367 367 367 Actuarial gains and losses on pension plans 10 10 10 Cash flow hedges 4 4 4 Exchange differences on translation of foreign operations –156 –156 –156 Net gain on hedge of net investments in foreign operations 0 0 0 Tax relating to components of other comprehensive income 0 –2 –2 –2 Other comprehensive income for the year, net of tax 4 –156 375 223 223 Dividend –163 –163 –163 Long term incentive programs 7 7 7 Transactions with owners –163 7 –157 –157 Closing balance Dec 31, 2025 1 257 –9 161 2,266 2,677 – 2,677 Scandi Standard Annual and Sustainability Report 2025 | 103ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Consolidated statement of cash flows MSEK Note 2025 2024 OPERATING ACTIVITIES Operating income 603 509 Adjustment for non-cash items 464 444 Paid finance items, net 29:1 –146 –157 Paid current income tax –80 –79 Cash flows from operating activities before changes in operating capital 840 717 Changes in inventories and biological assets –63 –7 Changes in operating receivables –79 20 Changes in operating payables 172 –76 Changes in working capital 31 –62 Cash flows from operating activities 871 654 INVESTING ACTIVITIES Investment in right-of-use assets –3 –1 Investment in intangible assets –85 –85 Investment in property, plant and equipment –698 –282 Divestments and acquisitions of operations 29:2 –16 –453 Cash flows used in investing activities –802 –821 MSEK Not 2025 2024 FINANCING ACTIVITIES New loans 29:4 338 1,928 Repayment of loans 29:4 –97 –1,381 Change in overdraft facility 134 –19 Payments for amortisation of leasing liabilities 29:4 –69 –80 Paid dividend –163 –150 Other –31 –26 Cash flow in financing activities 111 271 Cash flows for the year 181 104 Cash and cash equivalents at beginning of the period 109 4 Currency effect in cash and cash equivalents –10 1 Cash flows for the year 181 104 Cash and cash equivalents at end of the year 29:3 279 109 Scandi Standard Annual and Sustainability Report 2025 | 104ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Parent Company financial statements The Parent Company Scandi Standard AB (Publ) owns shares in the subsidiaries in which operations are conducted. These operations are shown in the section that describes the Group. No operations are conducted in the Parent Company and there are no employees. Parent Company balance sheet MSEK Note 31 dec 2025 31 dec 2024 32, 34 ASSETS Non-current assets Investments in subsidiaries 33 938 938 Total non-current assets 938 938 Current assets Receivables from Group entities 87 73 Cash and cash equivalents 0 0 Total current assets 87 73 TOTAL ASSETS 1,025 1,011 EQUITY AND LIABILITIES Equity Restricted equity Share capital 1 1 Non-restricted equity Share premium 256 420 Retained earnings 590 391 Income for the year 177 200 Total equity 1,024 1,011 Current liabilities Tax payables 1 – Accrued expenses and prepaid income 0 0 Total current liabilities 1 0 TOTAL EQUITY AND LIABILITIES 1,025 1,011 Parent Company income statement MSEK Note 2025 2024 Net sales – – Operating expenses 31 0 0 Operating income 0 0 Finance net1) 171 200 Income after finance net 171 199 Group contribution 7 0 Tax on income for the year –1 – Income for the year 177 200 1) Regards mainly dividend from subsidiaries. Parent Company statement of comprehensive income MSEK Note 2025 2024 Income for the year 177 200 Other comprehensive income for the year, net of tax – – Total comprehensive income for the year 177 200 Scandi Standard Annual and Sustainability Report 2025 | 105ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Parent Company statement of changes in equity MSEK Note Share capital Share premium account Retained earnings Total equity 20 Equity, Jan 1, 2024 1 570 390 961 Income for the year 200 200 Dividend –150 –150 Repurchase own shares – – Equity, Dec 31, 2024 1 420 590 1,011 Equity, Jan 1, 2025 1 420 590 1,011 Income for the year 177 177 Dividend –163 –163 Repurchase own shares – – Equity, Dec 31, 2025 1 256 767 1,024 Parent Company statement of cash flows MSEK 2025 2024 OPERATING ACTIVITIES Operating income 0 0 Paid finance items net 10 0 Paid current income tax 0 – Cash flows from operating activities before changes in operating capital 9 0 Changes in operating receivables 0 0 Changes in operating payables 0 0 Cash flows from operating activities 9 0 FINANCING ACTIVITIES Lending to subsidiaries –1 40 Dividend –8 –40 Repurchase own shares – – Paid group contribution 0 0 Cash flows from financing activities –9 0 Cash flows for the year 0 0 Scandi Standard Annual and Sustainability Report 2025 | 106ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Notes to the consolidated financial statements COMPANY INFORMATION The Parent Company, Scandi Standard AB (publ) is a limited company with domicile in Stockholm, Sweden. The corporate identity number is 556921-0627. The Group’s operations are described in the Board of Directors’ report. The Group’s and Parent Company’s financial statements for 2025 will be presented for adoption by the AGM, on April 28, 2026. NOTE 1 Accounting policies The principal accounting policies applied in preparing this annual report are summarized in this note or in respective note. The same policies are normally applied for both the Parent Company and the Group. Parent Company policies that differ from those of the Group are described under separate headings. BASIS FOR PREPARATION OF STATEMENTS Scandi Standard’s consolidated financial statements have been prepared in accordance with IFRS, International Financial Reporting Standards, as adopted by the EU, and the Annual Accounts Act. IFRS includes International Account- ing Standards (IAS) and interpretations of standards from IFRS Interpretations Committee (IFRS IC). In addition to the Annual Accounts Act and IFRS, The Swedish Corporate Reporting Board’s recommendation RFR 1, Supplementary Accounting Rules for Groups, has also been applied. The Parent Company’s annual financial statements have been prepared in accordance with the Annual Accounts Act and The Swedish Corporate Report- ing Board’s recommendation RFR 2, Accounting for legal entities. Amounts in MSEK unless otherwise stated. Scandi Standard applies the cost method for measuring assets and liabili- ties, except for derivative instruments and the category ‘financial assets and liabilities measured at fair value through the income statement’ and biological assets that are measured at fair value less cost of sales according to IAS 41. These financial assets and liabilities are not measured at fair value in the Parent Company. Non-current assets and non-current liabilities essentially consist only of amounts expected to be recovered or paid after more than twelve months reckoned from the closing date. Current assets and current liabilities essentially consist only of amounts that are expected to be recovered or paid within twelve months reckoned from the closing date. It may occur that the total amount in tables and statements do not add up due to rounding differences. The purpose is to ensure that each sub-line equals its original source, and therefore rounding differences may arise. Standards, amendments and interpretations that have been adopted by the EU entered into force in 2025 New and amended standards adopted by the group The group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2025: • The effects of changes in foreign exchange rates: lack of exchangeability (amendments to IAS 21) The amendments listed above did not have any material impact on the group’s financial statements. New standards and interpretations not yet adopted Certain amendments to accounting standards have been published that are not mandatory for 1 January 2025 reporting periods and have not been early adopted by the group: • Classification and measurement of financial instruments (amendments to IFRS 7 and IFRS 9) • IFRS 18 Presentation and disclosure in financial statements • IFRS 19 Subsidiaries without public accountability: disclosures IFRS 18 will not impact the recognition or measurement of items in the financial statements but its expect to have an impact on presentation and disclosures, such as statement of financial performance and management defined performance measures with the financial statements. The detailed implications of applying the new standard is currently being assessed. The other amendments are not expected to have a material impact on the group’s financial statements. Climate-related risks in the financial statements In preparing the financial statements, Management has assessed how climate-related risks may affect the consolidated financial statements and the measures that have been, or will be, put in place to mitigate such risks. Management assesses that climate-related risks do not have a material effect on the financial statements for the year ended 31 December 2025. Although climate-related risks currently do not have a significant impact, Management continues to monitor developments and changes in these risks. The items identified as potentially exposed to climate-related risks in the future include: • Impairment test (Note 6): Management has determined that climate-related assumptions are not considered significant factors in the goodwill impair- ment test performed for 2025. • Property, Plant and Equipment (Note 12): Management has considered the potential effects of climate-related risks on buildings, machinery, and instal- lations, including the impact on estimated useful lives, and has concluded that these risks do not have a material effect for 2025. CONSOLIDATED FINANCIAL STATEMENTS The Group’s financial statements comprise the financial statements for the Parent Company and all Group entities in accordance with the definitions below. Parent company The Parent Company recognises all investments in Group entities at cost, adjusted where applicable by accumulated impairment losses. Subsidiaries Subsidiaries are all entities over which the company has control. The Group controls an entity when the Group is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those Scandi Standard Annual and Sustainability Report 2025 | 107ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsoli- dated from the date that control ceases. The consolidated financial statements are prepared according to the pur- chase method. The cost of an investment in a subsidiary is the cash amount and the fair value of any non-cash consideration paid for the investment. The value of the acquired net asset, the equity in the company, is determined by measuring acquired assets and liabilities and contingent liabilities at their fair value on the date of acquisition. Those fair values constitute the Group’s cost. If the cost of an investment in a subsidiary exceeds the fair value of the acquired company’s identifiable net assets, the difference is recognised as consolidated Goodwill. If the cost is less than the final fair value of the net assets the difference is recognised directly in the income statement. Acquisi- tion-related costs are recognised in the income statement as they arise. Whether a minority’s share of Goodwill should be measured and included as an asset is determined for each acquisition. All intra-Group transactions, including receivables and liabilities, income and expenses as well as unrealized earnings, are eliminated in their entirety. Associates Investments in associates are accounted for using the equity method of accounting when Scandi Standard has a significant but not controlling influence, normally between 20 and 50 per cent of the voting rights. Read more in Note 14 Shares in associates. Read more in Note 26 Related party transactions. Translation of foreign Group entities Statements of balance sheets and income statements for all Group entities whose functional currency is not the presentation currency are translated into the Group’s presentation currency using the following procedures: • Assets and liabilities are translated at the closing rate on each reporting date recognised in the balance sheet. • Revenues and expenses are translated at the average rate for each year recognised in the income statement and statement of comprehensive income. • All translation differences that arise are recognised as a separate item under other comprehensive income in the statement of comprehensive income. In cases where net investments in foreign operations are hedged with financial instruments the foreign exchange differences arising on translation of these instruments are also recognised in the statement of comprehensive income. When a foreign operation is disposed of, the cumulative translation differences and exchange differences for any financial instruments held for hedging the net investment in the company are recognised as part of the gain or loss on disposal. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated according to the same principles as the entity. Foreign currency transactions and balance sheet items The various entities within the Group present their reports in the currency of the primary economic environment in which they operate (the functional currency). The consolidated financial statements are prepared in Swedish kronor (SEK), which is the Parent Company’s functional and presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the trans action date. Foreign currency receivables and liabilities are remeasured at closing date rates at the end of each reporting period. Exchange differences arising on such remeasurement, and upon payment of the transaction, are recognised in the income statement. However, exchange differences arising on remeasurement of items that are hedging transactions, and that qualify for hedge accounting, are recognised in other comprehensive income. Gains and losses on operating receivables and liabilities are netted and reported within operating income. Gains and losses on borrowings and financial investments are recognised as financial items. Exchange differences on receivables which represent an extended invest- ment in subsidiaries are recognised in other comprehensive income in the same way as translation differences relating to investments in foreign subsidiaries. The Group’s main currencies in addition to SEK, 2025 SEK Average rate Closing rate DKK 1.4829 1.4484 NOK 0.9444 0.9147 EUR 11.0677 10.818 SEGMENT REPORTING Recognised operating segments are consistent with the internal reporting submitted to the chief operating decision maker, who is the person that allocates resources and evaluates the results of the operating segments. At Scandi Standard, this role is assumed by the Managing Director & CEO, who, on behalf of the Board, takes charge of day-to-day management and governance. The business segments are consistent with the Group’s operational structure in which activities are divided into the segments Ready-to-cook and Ready-to-eat. Operations not included in the segments Ready-to-cook and Ready-to-eat and corporate functions are recognised as Other. A further description of the segments is provided in Note 3. The segments are responsible for their operating income and the assets and liabilities used in their own operations, the operating capital. Financial items and taxes do not fall within the segment’s responsibility; these are recognised centrally for the Group. The same accounting policies are used for the segments as for the Group, apart from financial instruments (IFRS 9 only at Group level). Transactions between segments and other operations are carried out on commercial terms. REVENUE Net sales Revenue from the sale of goods for the main businesses that comprise the sale of products is recognised when the buyer receives control over a product. The Group assess that this point in time mainly occurs upon delivery to the customer in accordance with current delivery terms in contracts entered into. Revenue is recognised at transaction price, which is the compensation the Group expects to receive in exchange for the transfer of goods and services. When determining the transaction price, any discounts, but also any commit- ments regarding goods that the customer fails to sell further, are given primary consideration. Payment is made on the basis of agreed payment terms in contracts entered into, which normally takes place at a time that occurs after delivery has taken place. Net sales include invoiced sales for main activities. Most of the Group’s revenue comes from the sale of manufactured goods. Scandi Standard Annual and Sustainability Report 2025 | 108ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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TAX The Group’s tax expense consists of current tax and deferred tax. Taxes are recognised in the income statement, except when the underlying transaction is recognised in other comprehensive income (OCI), in which case the related tax effect is also recognised in OCI. Current tax is the tax payable or receivable for the current year. Current tax also includes adjustments to current tax attributable to prior periods. Deferred tax is recognised using the balance sheet liability method on all temporary differences arising between the tax base of assets and liabilities and their carrying amount. Deferred tax is measured at the nominal amount and is calculated by applying the tax rates and regulations that have been enacted or substantively enacted by the reporting date. Deferred taxes relating to temporary differences attributable to investments in subsidiaries and associates are not recognised, as, in each case, Scandi Standard is able to control the date for their reversal and it is not considered probable that any such reversal will occur in the near future. Deferred tax assets relating to deductible temporary differences and loss carryforwards are recognised only to the extent that it is considered probable that these will result in lower tax payments in the future. Deferred tax assets and deferred tax liabilities are offset when they are attributable to the same tax authority and the companies in question have a legally enforceable right to offset current tax assets against current taxation liabilities. The Group is within the scope of the OECD model rules as well as EU’s directive for Pillar 2. Pillar 2 legislation was adopted in Sweden on 1 January 2024, where Scandi Standard is headquartered. Pillar two is a global minimum tax of 15% introduced for companies in each country where operations are conducted. Pillar 2 is not expected to have any material impact on the Group’s tax expenses. INTANGIBLE ASSETS Intangible assets such as Goodwill, trademarks and customer and supplier relationships are identified and measured normally in connection with business combinations. Expenditures on internally generated trademarks, customer relationships and internally generated Goodwill are recognised in the income statement as an expense when they are incurred. Goodwill The value of the Goodwill is allocated to the operating segment’s cash generating units which are expected to benefit from the acquisition that gave rise to the Goodwill item. Goodwill is recognised at cost less accumulated impairment losses and is tested annually for impairment. Goodwill impairment is not reversed. Goodwill arising on acquisition of associates is included in the carrying amount of the associate and is tested for impairment as part of the value of the total investment in the associate. Trademarks The value of trademarks is recognised at cost less any accumulated amortisa- tion and impairment losses. Trademarks with an indefinite useful life are not amortised but are tested annually for impairment in the same way as Goodwill. Consumer trademarks that Scandi Standard intends to continue using for the foreseeable future and that have a cost of at least MSEK 10 are classified as trademarks with an indefinite useful life. The Relief from Royalty Method is used to measure trademarks identified in a business combination. As trademarks in Sweden, Denmark and Norway have indefinite useful life, no estimated useful life has been defined. Trademarks in Ireland has an estimated useful life of 20 years. Customer and supplier relationships Intangible assets in the form of customer and supplier relationships are identified in connection with business combinations. The value of customer relationships is calculated using the Multi Period Excess Earning Method, together with any other relevant information, and is recognised at cost less accumulated amortisation and impairment losses. At present, existing customer relationships are considered to have a total useful life of 8, 10 or 20 years and existing supplier relationships a useful life of 5 or 10 years. Research and development No research is conducted within the Group. Expenditure on development is rec- ognised as an intangible asset only if it is technically and financially feasible to complete the asset, it is expected to provide future economic benefits, the cost of the asset can be measured reliably, and the development is substantial. Currently, this means that all expenditure on the development of commercial products and similar products is expensed as incurred. Expenditure on devel- opment of business-related IS/IT-systems, Scandi Standard has made an evo- lution if the cloud computing arrangement for the new ERP system includes an intangible asset based on the regulations. Since there is contractual rights to take possession of the software during the hosting period without significant penalty and it is feasible to run the software on its own hardware or contract with a party unrelated to the supplier to host the software, the expenses for the new ERP system has been capitalized. Capitalized expenditure is amortised on a straight-line basis over the estimated useful life of 5 to 10 years. Impairment losses Intangible assets with an indefinite useful life are not amortised but are tested for impairment annually or more frequently if there is an indication of impairment. The carrying amounts of assets that are amortised are regularly tested. At the end of each reporting period, an assessment is made as to whether there is any indication that the assets are impaired and need to be written down. The recoverable amount is estimated for these assets and for assets with indefinite useful life. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. An impairment loss is recognised if the recoverable amount is less than the carrying amount. For an asset that depends on other assets generating cash flows, the value in use of the smallest cash-generating unit to which the asset belongs is estimated. Goodwill is always allocated to the cash-generating units that benefit from the acquisition that generated the Goodwill. An asset’s value in use is the present value of the estimated future cash flows that are expected from using the asset and its estimated residual value at the end of its useful life. When calculating the value in use, future cash flows are discounted at an interest rate before tax that takes into account a market assessment of risk-free interest rates and risk involved with the specific asset. PROPERTY, PLANT AND EQUIPMENT Items of property, plant and equipment are recognised at cost less accumu- lated depreciation and any accumulated impairment. For major investments, where the total investment value is at least MSEK 100 and the investment period lasts at least 12 months, interest during construction is included in the cost of the asset. Depreciation policies for property, plant and equipment Land is assumed to have an indefinite useful life and is therefore not depreciated. Depreciation is straight-line over the asset’s estimated useful life. Each com ponent of a larger item of property, plant and equipment with a cost that is significant in relation to the asset’s total cost and with a useful life significantly different from the rest of the asset, is depreciated separately. The assets’ residual values and useful life are tested at least annually and adjusted as necessary. Scandi Standard Annual and Sustainability Report 2025 | 109ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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The following depreciation schedules are applied: Buildings 25–30 years Property fixtures 10–25 years Plant and machinery 5–20 years Equipment, tools 5–15 years Vehicles 5–10 years Office equipment 5–10 years RIGHT -OF-USE ASSETS All leases are recognised in the balance sheet and are, classified as right-of- use assets and leasing liabilities. At the start of the lease, a right-of-use asset and a financial liability are recognized. Exceptions, are short-term leases (shorter than one year) and low value leases (below KSEK 50). These does not recognises as right of use asset and financial liability. Expenses for these leases are recognised over the lease period and the amounts are disclosed separately in the financial statements, for more information see Note 13. The right-of-use asset is initially measured at the value of the leasing liability adjusted for any lease payments made before or on the initial date of the lease with the addition of any direct costs and the estimated cost of restoring the underlying asset. The lease liability is initially estimated to the present value of future lease payments, discounted by the implicit interest rate of the agreement, or if difficult to identify, the marginal loan rate of the Group. In general, the marginal loan rate is used. Interest costs are disclosed separately. When the lease period is determined, the company uses avail able information impacting the incentive to utilize an extension option, or to not use the option to cancel the lease. Extension options are only included in the lease period if the lessee is reasonably certain that the option will be exercised, and periods included in an option to cancel are only included in the lease period if the lessee is reasonably certain to not use the option. Revaluation of leasing liabilities is done when changes in future lease pay- ments are caused by changes in an index or price or if the Group changes its estimate regarding buy-out, extension or cancellation of the lease agreement. The value of the right-of-use asset is also changed with the same amount. The right-of-use asset is depreciated on a straight-line basis over the short- est of the useful life of the assets and the term of the lease. The right-of-use asset is adjusted for revaluation of the lease liability and any write downs. The Scandi Standard group as a lessee refers to agreements primary relating to production facilities, office properties, production equipment and company cars. BIOLOGICAL ASSETS Scandi Standard has biological assets in the form of broiler parent stock within the operations of rearing day-old chicks in Sweden. Breeding of chicks is conducted in Ireland, Denmark and in Lithuania. The lifespan of the parent stock is approximately one year, and the lifespan of the broilers is about 30 days. The assets of broiler parent stock are measured at fair value less cost of sales, according to IAS 41. The parent stock has been measured using cash flow projections from expected sales of day-old chicks and the direct and indirect costs of animal husbandry. For costs, estimates have been made based on past experience. There is an observable market price for the day-old chicks and for number of chicks produced, the grower norms for the variety kept have been used. The chicks in the breeding have been measured based on direct and indirect costs of animal husbandry and on purchase prices for similar flocks. INVENTORIES Inventories are measured, according to IAS 2, at the lower of cost and net realizable value at the reporting date. The cost is estimated by applying the FIFO (first in/ first out) method or weighted average prices. The cost of self-produced goods includes raw materials, direct salaries, other direct costs and production-related overhead costs, based on normal production capacity. Borrowing costs are not included in the measurement of inventories. Net realizable value is the estimated selling price in operating activities less deductions for the estimated costs to complete and sell the product. FINANCIAL ASSETS AND LIABILITIES Financial instruments Financial assets and liabilities recognised in the balance sheet include cash and cash equivalents, trade receivables, shares, loan receivables, other interest-bearing instruments, trade payables, borrowings and derivative instruments. Derivative instruments are recognised in the balance sheet when the agreements are made. Other financial assets and financial liabilities are recognised in the balance sheet on the settlement date. The Group classifies its financial assets in the following categories; fair value through the income statement or amortized costs. Assets held for the purpose of collecting contractual cash flows and where these cash flows constitute principal amounts and interests, and have not been identified as measured at fair value, are measured at amortized cost. The booked value of these assets is adjusted with expected credit losses. Interest income from these financial assets is recognised using the effective interest method and is included in financial income. Financial liabilities are normally recognised as amortised cost. The Group assesses the future expected credit losses related to assets recognised at amortized cost. The Group reports a credit reserve for such expected losses at each reporting date. For accounts receivable, the Group applies the simplified approach for credit reserve i.e. the reserve will correspond to the expected loss over the entire life of the receivable. To estimate the expected credit losses, accounts receivable has been grouped based on credit properties and the number of days in relation to maturity. The Group also uses forward-looking variables to assess the expected credit losses. Claims that are not accounts receivable is assessed based on the risk of default during the entire remaining term of receivable and the expected recoverable amount. Derivative instruments and hedge accounting Scandi Standards’ holdings of financial derivative instruments comprise interest rate swaps and derivative instruments for energy hedging. Interest rate swaps are agreed in order to prolong the interest period for the underlying liabilities and decrease the uncertainty of future interest expenses. The derivative instruments for energy hedging is entered into in order to reduce the uncertainty in future energy costs. Derivative instruments are recognised at fair value and the result of the remeasurement affects the income statement. In case where the derivative does not qualify for hedge accounting and the insurance model is a cash flow hedge or hedge of net investments, the effective portion of the remeasurement effect is recognised in other comprehensive income. Hedge accounting may be applied if certain criteria are met with regard to documentation of the hedge relationship and the hedge effectiveness. Scandi Standard currently only applies cash flow hedging and hedging of net investments. Hedge accounting Scandi Standard has updated the hedge documentation according to IFRS 9. Hedges that qualify for hedge accounting shall be deemed to be effective during the remaining term of the hedge. Sources of inefficiency must be identified. The hedged item and hedging instrument must have an economic relationship, the hedging ratio must be in accordance with the company’s hedging strategy and credit risk must not be the dominant cause of the hedging instrument’s change in value. Scandi Standard Annual and Sustainability Report 2025 | 110ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Cash flow hedges The future cash flows that are hedged must be deemed to have a high probability to occur. The portion of the hedging instrument’s change in value which is deemed to be effective is recognised via other comprehensive income as equity and any ineffective portion is recognised in the income statement. When the result of the hedged item affects the income statement the result from the hedging instrument is transferred from other comprehensive income to the income statement. Scandi Standard applies cash flow hedging for currency risks in commercial purchases and sales, for interest rate risks in the debt portfolio as well as for price risk for purchases of electricity and gas. Hedging of net investments Scandi Standard hedges net investments in a foreign operation by borrowing in the subsidiaries currency. Foreign currency gains or losses arising from remeasurement of the fair value of the instruments used for these hedges are recognised in other comprehensive income and accumulated in equity. The result is reclassified from equity to the income statement upon disposal of the foreign operation. Determination of fair value Interest rate swaps are recognised using estimates of future discounted cash flows. The fair value of energy hedge contracts is estimated based on current forward rates at the reporting date. For financial liabilities, the fair value is estimated through discounting future cash flow of relevant market interest rate taking into account Scandi Standard’s credit risk. For financial assets and liabilities with short maturities, below three months, the fair value is estimated at cost adjusted for any impairment. Parent Company In the Parent Company, financial instruments are recognised using the cost method. The Parent Company applies the rules in RFR2 and thus not IFRS 9. As the interest-bearing assets and liabilities of the Parent Company are con- sistent in all material respects with those of the Group, no special disclosures are provided for the Parent Company. PROVISIONS Provisions are recognised, according to IAS 37, when Scandi Standard has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation. The amount of the provision recognised is the best estimate of the expenditure required to settle the obligation at the reporting date. For long-term material amounts, provisions are measured at the present value of the expenditure required to settle the obligation, taking into account the time value of money. Provisions for restructuring measures are made when a detailed, formal plan for measures is in place and well-founded expectations have been created for those who will be affected by the measures. EMPLOYEE BENEFITS Read more in Note 5 Employee benefits. Pensions Employee benefits are recognised according to IAS 19. Scandi Standard has both defined contribution and defined benefit pension plans, most of which are funded. With defined contribution plans, the company pays fixed con tributions to a separate legal entity and has no obligation to pay further contributions thereafter. Defined benefit pension plans define an amount of pension benefit that an employee will receive on retirement. The Group’s companies bear the risk associated with paying out promised benefits. The liability recognised in the balance sheet consists of the net of the estimated present value of the defined benefit obligation and the fair value of the plan assets associated with the obligation at the reporting date, either in a pension fund or in some other arrangement. The company’s obligation is calculated annually by independent actuaries. The obligation comprises the present value of the expected future payments. The discount rate that is used corresponds to the interest rate for high-quality corporate bonds with a maturity that corresponds to the average term for the obligations and the currency. Actuarial gains and losses may arise in determining the present value of the defined benefit obligation and fair value of plan assets. These arise either when the actual outcome diverges from the previously calculated assumption or the actuarial assumption changes. These actuarial gains and losses are recognised in Other comprehensive income. A special payroll tax is calculated on the difference between the pension obligation determined according to IAS 19 and the pension obligation determined according to the rules applied in the legal entity. The calculated future payroll tax is included in the recognised pension liability. Termination benefits A provision for costs in connection with termination of personnel is recognised only if the company is obligated to end employment before the normal retirement date or when benefits are provided as an incentive to encourage voluntary termination. Estimated termination benefits are recognised as a provision when a detailed plan for the measures is presented. GOVERNMENT GRANTS Government grants are recognised in the balance sheet and the income statement when there is reasonable assurance that any conditions attached to the grant will be complied with and the grant will be received. Grants are recognised in the income statement on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Grants that are related to assets are recognised as a reduction in the value of the asset. If the government grant or assistance is neither related to the acquisition of assets nor to compensation of costs, it is recognised as other income. GROUP CONTRIBUTIONS AND SHAREHOLDER CONTRIBUTIONS Parent Company The Swedish Corporate Reporting Board has introduced rules for reporting Group contributions in its recommendation RFR 2, Accounting for legal Entities. Scandi Standard applies the alternative rule, which means that both Group contributions received, and Group contributions made are recognised as an appropriation. The issuer capitalizes the shareholder contribution in shares and interests to the extent that impairment is not required. RELATED PARTIES By virtue of its control, the Parent Company has a related party relationship with its subsidiaries and sub-subsidiaries. By virtue of their significant influence, the Group and Parent Company have a related party relationship with their associates, which include directly and indirectly owned companies. Intra-Group purchases and sales of goods and services are conducted at market prices. By virtue of their right to participate in the decisions concerning the Group’s strategies, members of the Group’s Operational Board have significant influence over the Parent Company and Group and are therefore considered to be related parties. Scandi Standard Annual and Sustainability Report 2025 | 111ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 2 Significant judgments, accounting estimates and assumptions Preparation of annual financial statements in accordance with IFRS in many cases requires management to make judgments and use of accounting estimates and assumptions in determining the carrying amounts of assets and liabilities. These estimates are based on historical experience and assumptions that are con sidered reasonable and realistic in the current circumstances. The actual outcome may differ from the accounting estimates and assumptions. The estimates and underlying assumptions are regularly reviewed. The effect of a change in an accounting estimate is recognised in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both. A general description of the accounting policies where management’s accounting estimates and assumptions are expected to have a material effect on Scandi Standard Group’s financial position and financial statements within the next financial year are provided below. The carrying amounts at the reporting date can be found in the balance sheet and associated notes. Impairment of Goodwill and other assets Goodwill and other intangible assets with indefinite useful life are tested for impairment annually or whenever there are indications of possible impair- ment – in situations such as a changed business environment, a divestment decision or closure of operations. The Group’s Goodwill and other intangible assets amounted to MSEK 1,879 (1,953) at the end of the year, which corre- sponds to 25 (27) per cent of the Group’s total assets. Other assets are tested for impairment as soon as there is an indication that an asset’s recoverable amount is lower than its carrying amount. In most cases, an asset’s value in use is estimated by reference to the present value of the future cash flows the Group expects to derive from the asset. The cash flow projection is based on assumptions that represent management’s best estimate of the economic conditions that will exist over the remaining useful life of the asset and are based on the latest financial plan. An impairment loss is recognised if the estimated value in use is lower than the carrying amount. The discount rates used to calculate the present value of the expected future cash flows are estimated from the current weighted average cost of capital (WACC) established within the Group for the markets in which the cash- generating units are active at the time. Other estimates regarding expected future results and the discount rates used can give different values of assets from those applied. Impairment is described in more detail in Note 6. Deferred tax assets and tax liabilities Assessments are made to determine deferred tax assets and tax liabilities. Deferred tax assets are recognised as an asset when it is considered likely that they can be utilized and offset against future taxable profits. Other assumptions regarding the outcome of these future taxable profits, as well as changes in tax rates and rules can result in significant differences in the measurement of deferred taxes. More detailed information about the amounts can be found in Note 10. Pensions The value of pension obligations for defined benefit pension plans is deter- mined by using actuarial calculations based on assumptions about discount rates, future salary increases, inflation and demographics. The discount rate, which is the most critical assumption, is based on the market return on high-quality corporate bonds, namely mortgage bonds with long maturities. The rate is extrapolated to correspond to the pension plan’s obligations. A lower discount rate increases the present value of the pension obligation and pension cost, while a higher discount rate has the reverse effect. A reduction of the discount rate by 0.25 per centage points would increase the pension obligation by MSEK 4 (4) while an increase would reduce the obligation by MSEK 4 (4). More detailed information about the amounts can be found in Note 23. Biological assets The Group has biological assets in the form of broiler parent stock, in the rearing of day-old chicks. Breading of chicks is conducted in Ireland, Denmark and in Lithuania. These assets are measured at fair value less cost of sales according to IAS 41. The value of those assets is dependent on assumptions. For broiler parent stock, the market price for day-old chicks as well as opera- tional expenses for keeping the stock impacts the value of the assets. A 1 per cent change in the price of day-old chicks impacts the value of the assets by about MSEK 1 (1). Regarding the breading of chicks, the value is impacted by the operational expenses for keeping the stocks. A 1 per cent change in the value of these flocks impacts the value by about MSEK 0 (1). Detailed information about the amounts and changes can be found in Note 16. Valuation of inventory and Obsolescence reserve The ’anatomic balance’ is monitored on a regular basis along with its effect on inventory. The inventory of finished goods is measured at the lower of cost or net realisable value. The net realisable value is the estimated sales value less expected selling expenses. An assessment of the estimated sales value requires assumptions and assessments by management that include subjective aspects, such as price competition and expected fluctuations on future prices. Determining the need for impairment is a significant and difficult assessment issue. Historically the average obsolescence reserves amount to 7-12 per cent of the inventory value. Detailed information about the amounts and changes can be found in Note 17. Scandi Standard Annual and Sustainability Report 2025 | 112ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 3 Segment reporting Information about operating segments Financial year, Jan 1–Dec 31 MSEK Ready-to-cook Ready-to-eat Other / Eliminations1) 2) Total Group 2025 2024 2025 2024 2025 2024 2025 2024 Total net sales 10,783 9,923 2,785 2,601 516 499 14,083 13,024 Adjusted operating income 487 368 97 148 19 –6 603 509 Non-comparable items – – – – – – – – Operating income 487 368 97 148 19 –6 603 509 Of which share of income in associates 3 3 – – – – 3 3 Finance income 3 4 Finance expenses –153 –158 Tax on income for the year –86 –80 Income for the year 367 275 Other disclosures Assets 3) 5,437 5,293 1,522 1,218 258 443 7,217 6,954 Holding in associates 54 55 Unallocated Assets 375 270 TOTAL ASSETS 5,437 5,293 1,522 1,218 258 443 7,646 7,279 Liabilities 1,652 1,588 518 482 253 243 2,423 2,313 Unallocated liabilities 2,546 2,356 Equity 2,677 2,611 TOTAL EQUITY AND LIABILITIES 1,652 1,588 518 482 253 243 7,646 7,279 Net investments 427 207 272 72 84 88 783 367 Depreciation, amortisation and impairment –358 –342 –66 –59 –24 –23 –448 –425 1) Where of elimination of group charges in the year of MSEK 374 (327). 2) Net sales within Ingredients amounted to MSEK 516 (499) with an operating income (EBIT) of MSEK 58 (32). Group costs of MSEK –39 (–38) were recognised in the Group operating income (EBIT). 3) For the allocation of assets by country, see note 12. Scandi Standard Annual and Sustainability Report 2025 | 113ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Scandi Standard’s business is divided into segments Ready-to-cook, Ready-to-eat and Other The Groups operational structure is an integrated matrix organisation, i.e. managers are held responsible both for product segments and geographies. An integral part of the Company strategy for continued growth and value creation is to share best practice, capitalize on product development and drive scale efficiencies across the Group. The responsibility for the Group’s financial assets and liabilities, provisions for taxes, gains and losses on the re-measurement of financial instruments according to IFRS 9 and pension obligations according to IAS 19 are dealt with by the corporate functions and are not allocated to the segments. Segment Ready-to-cook (RTC): ): is the Group’s largest segment and consists of products that are either chilled or frozen, that have not been cooked. These include whole birds, cuts of meat, deboned and seasoned, or marinated products. Products are made available mainly via Retail and Foodservice to both domestic and export markets. The segment comprises RTC processing plants in six countries, the feed business in Ireland, egg production in Norway, and the hatching business in Sweden. Net sales for the segments consist of the external net sales. Segment Ready-to-eat (RTE): consists of products that have been cooked during processing and are ready to be consumed, either directly or after being heated up. Products range from grilled and pre-sliced chicken fillets with different seasoning to chicken nuggets. Sales are mainly to Retail and Food- service sales channels, and part of the production is exported. The segment comprises four own RTE processing plants in Denmark, Norway, Finland and Netherlands, combined with third-party production. Net sales for the segments consist of the external net sales. The operational result includes the integrated result for the group without internal margins. Segment Other: consists of ingredients, which are products mainly for non- human consumption, and mainly used for industrial production of animal feed and other applications, in line with Scandi Standard’s ambition is to utilize the animal entirely, as it reduces production waste to almost zero and contributes to a lower carbon footprint. No individual part of Other is significant enough in size to constitute its own segment. MSEK Ready-to-cook Ready-to-eat Other Total 2025 2024 2025 2024 2025 2024 2025 2024 Net sales split Sweden 2,861 2,606 748 700 173 150 3,781 3,455 Denmark 1,976 1,868 1,453 1,337 143 143 3,574 3,348 Norway 1,701 1,774 486 471 30 39 2,218 2,284 Ireland 2,868 2,688 11 11 135 130 3,016 2,829 Finland 911 982 85 83 34 37 1,032 1,101 Lithuania 464 5 – – – – 464 5 Netherlands – – – – – – – – Total net sales per country 10,783 9,923 2,785 2,601 516 499 14,083 13,024 NOTE 4 Breakdown of revenue MSEK 2025 2024 Net sales Sales of goods 14,083 13,024 Total 14,083 13,024 Other operating income Rental income 1 0 Government grants 2 1 Canteen sales 5 9 Insurance compensation 14 15 Unrealised and realised currency gains 12 7 Other 13 9 Total 46 42 Government grants were received of MSEK 2 (1) and of these MSEK 2 (1) has been recognised as revenue and MSEK 0 (0) as a reduction of cost. Note 3 cont. Net sales (external sales) based on customer location MSEK 2025 2024 Sweden 4,348 3,980 Norway 2,728 2,312 Ireland 2,252 2,489 Denmark 2,019 1,839 Finland 1,127 1,188 Germany 223 187 United Kingdom 232 195 Rest of Europe 871 551 Rest of the world 283 283 Total 14,083 13,024 During 2025 one of Scandi Standard’s customers accounted for more than 10 per cent of the Group’s total net sales. The net sales for the customer amounted to MSEK 1,751 (1,636). The majority is within the segment RTC. Scandi Standard Annual and Sustainability Report 2025 | 114ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Average number of employees 2025 of which women 2024 of which women Group Sweden 831 37% 851 38% Denmark 922 42% 938 43% Norway 342 57% 328 58% Ireland 1,059 43% 930 40% Finland 313 43% 299 36% Lithuania 180 44% 20 61% Netherlands 22 34% – – Total, Group1) 3,670 43% 3,366 42% 1) No employees in the Parent company. Cost of personnel, MSEK 2025 2024 Salaries and benefits, Board of Directors and MDs 32 22 – of which variable salary 5 4 Salaries and benefits, other employees 2,292 2,093 Social security expenses 276 258 Pension expenses1) 185 171 Other staff costs 90 99 Capitalised personnel expenses2) 0 –1 Total 2,875 2,641 1) MSEK 2 (2) of the Group’s pension costs relate to boards and Managing Directors. There are no outstanding pension obligations for these individuals. 2) Capitalised personnel expenses of ongoing investment project. Gender representation in executive management Group Parent Company Female representation, % 2025 2024 2025 2024 Board of Directors 28 17 25 25 Other senior executives 35 30 – – Guidelines for remuneration to senior management The AGM has passed a resolution on the guidelines for remuneration to senior management. In these guidelines, the senior management means the managing director of the company, the senior managers in the company and other group companies who, from time to time, report to the managing director or the CFO and who are also members of the senior management, as well as board members of the company that have entered into an employment or consulting agreement with a group company. The company’s remuneration principles and policies shall be designed to ensure responsible and sustaina- ble remuneration decisions that support the company and the Group’s strategy, long-term interests and sustainable business practices. Salaries and other terms and conditions of employment shall be adequate to enable the company and the group to retain and recruit skilled senior managers at a reasonable cost. The remuneration to the senior managers shall consist of fixed salary, variable salary, pension and other benefits, and it shall be based on the principles of performance, competitiveness and fairness. Principles for fixed salary Each senior manager shall be offered a fixed salary in line with market condi- tions and based on the manager’s responsibility, expertise and performance. To the extent a board member performs work for the company, in addition to ordinary board work, a market based consulting fee may be paid. Principles for variable salary All senior managers may, from time to time, be offered a variable salary (i.e., cash bonuses). The variable salary shall be based on a set of financial objectives determined in advance. To which extent the objectives for awarding variable salary has been satisfied shall be determined when the relevant measurement period of the performance criteria has ended. The remuneration committee of the Board of Directors is responsible for the evaluation of the variable salary to the managing director and CEO. The managing director and CEO is responsible for the evaluation of the variable salary to other members of the senior management. The variable salary may not amount to more than 75 per cent of the fixed salary (in this context, fixed salary means cash salary earned during the year, excluding pension, benefits and similar). Principles for share-related incentive programs These guidelines does not cover compensation decided upon the general meeting. Consequently, the guidelines does not apply to the share-related long-term incentive program 2025 (L TIP 2025) that the board has decided at the annual general meeting 2025 or the long-term programs decided upon the annual general meetings of 2024, 2023 and 2022. The general meeting may resolve on long-term incentive programs such as share and share price-related incentive programs for certain key persons. Such incentive programs shall be designed to promote the long-term value growth of the company and the group, sustain ability and alignment between the interests of the participating individual and the company’s shareholders. Principles for pensions, salary during periods of notice and severance pay Agreements regarding pensions shall, where applicable, be premium based and designed in accordance with the level and practice applicable in the country in which the member of senior management is employed. Pension premiums for premium defined pension may not amount to more than 30 per cent of the annual fixed salary unless otherwise applies pursuant to applicable collective bargaining agreements. In addition to fixed and variable salaries and pensions, Scandi Standard offers occupational injury insurance and occupational group life insurance in accordance with local agreements and regulations. In addition, senior managers are entitled to private health insurance, telephone and car benefits. Other benefits may include, for example, life insurance, medical insurance and company cars. Premiums and other costs related to such benefits may not amount to more than 10 per cent of the annual fixed salary. Fixed salary during notice periods and severance payment, including pay- ments for any restrictions on competition, shall in aggregate not exceed an amount equivalent to the fixed salary for two years. The total severance payment for all members of the senior management shall be limited to the current monthly salary for the remaining months up to current retirement age in each country. Preparation and review of matters related to remuneration for senior executives These guidelines have been prepared by the remuneration committee of the Board of Directors. When evaluating whether the guidelines and the limitations set out herein are reasonable, the remuneration committee has considered the total income of all employees of the company, including the various components of their remuneration as well as the increase and growth rate over time. The remuneration committee shall during the year monitor and evaluate both ongoing and completed programs for variable remuneration for senior management, and monitor and evaluate the application of the guidelines for remuneration to senior management resolved by the Annual General Meeting as well as the current NOTE 5 Employees and employee benefits expenses Scandi Standard Annual and Sustainability Report 2025 | 115ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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remuneration structures and compensation levels in the company and the Group. The members of the remuneration committee are independent in relation to the company and senior management. The Managing Director and the other members of senior management do not participate in the Board of Directors’ handling and resolutions of remuneration related matters if they have no effect. Principles for deviations from the guidelines The Board of Directors may resolve to deviate from the guidelines if the Board of Directors, in an individual case, is of the opinion that there are special circumstances justifying a deviation and a deviation is necessary to serve the company’s long-term interests, including its sustainability, or to ensure the company’s financial viability. Variable salary Scandi Standard has a general program for variable salary that applies to senior management, local management teams and certain key persons. Targets may be qualitative as well as quantitative. Decisions about participants and targets are made annually by Scandi Standard’s Board of Directors. Variable salary is accrued for in line with expected pay-out. Pension Scandi Standard offers its employees occupational pensions unless otherwise regulated in local agreements or other regulations. The Managing Director and CEO of Scandi Standard is entitled to a defined contribution pension scheme, with a premium of 30 per cent of the pensionable salary. Scandi Standard’s senior management follows the guidelines for remuneration, which entails a maximum premium of 30 per cent of pensionable salary. Other employees: In Sweden, employees are covered by defined benefit pension or premium based pension through PRI Pensionstjänst AB or an alternative solution. In Denmark, the pension contribution corresponds to 13 per cent of the pensionable salary. In Norway, the pension contributions are based on individual defined contribution pension agreements with contributions of between 3 and 23 per cent of the pensionable salary. In Ireland, the pension contribution corresponds to between 4 and 20 per cent of the pensionable salary. In Finland, the pension contribution corresponds to between 23 and 25 per cent of the pensionable salary. In Lithuania, the pension contribution corresponds to 3 per cent of the pensionable salary. In Netherlands, the pension contribution corresponds to between 15 and 21 per cent of the pensionable salary. Termination and other benefits Termination benefits/notice The Managing Director and CEO has a notice period of six months for termination of employment at the company’s request and six months for termination at his own request. If employment is terminated at the company’s request, termination benefits corresponding to six months’ severance pay. The severance pay is not qualified for holiday and pension pay and is paid with one-sixth per month after the notice period has ended. Other senior managers have notice periods of between 6–12 months for termination of employment at the company’s request and between 3–6 months for termination at their own request. Certain senior managers have non-competition clauses with financial compensation to be paid to the company if breached, corresponding to between 3–12 months remuneration. Other benefits In addition to fixed and variable salaries and pensions, Scandi Standard offers occupational injury insurance and occupational group life insurance in accord- ance with local agreements and regulations. In addition, senior managers are entitled to private health insurance, telephone and car benefits. Premiums and other costs related to such benefits may not amount to more than 10 per cent of the annual fixed salary. Long term incentive program L TIP 2022 was terminated during 2025 and led to that 166,211 shares with a combined market value of MSEK 16 were allotted to the participants in the pro- gram. Participants in the programs are senior managers and key employees. At the end of 2024 the following incentive programs are ongoing, that have been accepted by the AGM the year they were started: • L TIP 2023 for 32 participants, and originally a maximum of 302,330 shares could be allotted. • L TIP 2024 for 31 participants, and originally a maximum of 530,000 shares could be allotted. • L TIP 2025 for 33 participants, and originally a maximum of 474,000 shares could be allotted. LTIP 2025 The participants are required to invest in Scandi Standard shares (“Investment shares”) in relation to a fixed per centage of the participants fixed salary in order to participate in L TIP 2025. Each such share will give participants one (1) Retention Share Right and four (4) Performance Share Rights each of which are subject to the fulfilment of a performance requirements during the term of the program. In order for Share Rights (both Retention Share Rights and Performance Share Rights) to entitle to allotment of ordinary shares, it shall be required that the participant (a) does not divest its Investment Shares during the Vesting Period and (b) has not given or is not given notice of termination of employment within the group during the Vesting Period and (c) the participant undertakes to retain all allocated ordinary shares (except to cover payment of tax that arises in connection with the allotment of shares) for a period of two years from the date of allocation of the ordinary shares. Performance requirement In addition to the vesting requirement set out above, allotment of ordinary shares for the Performance Share Rights shall be conditional upon the satisfaction of performance target below. Target 1 The performance target is related to the total shareholder return (TSR) on the Scandi Standard ordinary share on Nasdaq Stockholm relative to the OMX Stockholm Mid Cap Index (the “Index”) during a certain measurement period as set out below. If minimum level of the performance requirement shall amount to a TSR equal to the TSR index. If the TSR is equal to the TSR Index, participants shall be allocated ordinary shares for 25 per cent of their Perfor- mance Share Rights 1. The maximum level of the performance requirement shall amount to a TSR corresponding to TSR Index plus 10.0 percent. If the TSR exceeds TSR Index plus 10.0 per cent or more, participants shall be allocated ordinary shares for 100 per cent of their Performance Share Rights 1 (maxi- mum allocation). If TSR is less than TSR Index, no Performance Share Rights 1 shall entitle to the allocation of ordinary shares. If TSR Index is between the lowest and the highest value, the number of Performance Share Rights 1 entitling to the allocation of ordinary shares shall be calculated linearly. Target 2 The performance target is related to the compound annual growth rate of earnings per share (“EPS CAGR”) and measured during a certain measurement period as set out below. The minimum level of the performance target shall be an EPS CAGR equal to 5.0 per cent. If the EPS CAGR is 5.0 per cent, the par- ticipants shall be allotted ordinary shares for 25 per cent of their Performance Share Rights 2 and 3. The maximum level of the performance target shall be an EPS CAGR of 32.0 per cent. If the EPS CAGR equals or exceeds 32.0 per cent, the participants shall be allotted ordinary shares for 100 per cent of their Performance Share Rights 2 and 3 (maximum allocation). If the EPS CAGR is less than 5.0 per cent, no Performance Share Right 2 and 3 shall entitle to Note 5 cont. Scandi Standard Annual and Sustainability Report 2025 | 116ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Salaries and remuneration of senior management 2025, TSEK Directors’ fees Fixed salary1) Variable salary2) LTIP3) Pension1) Other benefits5) Total 2025 Board members, specified below 4,620 – – – – – 4,620 Managing Director and CEO Jonas Tunestål – 6,116 4,422 5,117 1,842 144 17,641 Group Management, other6) – 27,418 7,657 5,673 4,268 1,654 46,671 Total 4,620 33,535 12,078 10,791 6,111 1,798 68,932 Salaries and remuneration of senior management 2024, TSEK Directors’ fees Fixed salary1) Variable salary2) LTIP4) Pension1) Other benefits5) Total 2024 Board members, specified below 4,430 – – – – – 4,430 Managing Director and CEO Jonas Tunestål – 5,568 3,060 3,599 1,675 173 14,075 Group Management, other7) – 30,797 5,438 3,628 3,502 1,701 45,066 Total 4,430 36,365 8,498 7,226 5,177 1,874 63,570 Note 5 cont. 1) Certain members of Group Management are entitled to exchange fixed salary for pension contribution within the framework of current tax legislation. 2) The variable salary is based on the Group’s financial performance and financial targets. For 2 024 the variable salary includes one-off compensation according to the employment contract for member of Group management. 3) The Group’s reservation, referring to L TIP 2023–L TIP 2025. 4) The Group’s reservation, referring to L TIP 2022–L TIP 2024. 5) Mainly car, phone and health insurance benefits. 6) Group Management other includes costs for 2025 for a total of 11 individuals. During the year, 2 person left Group management. During 2025, 1 person have been added to the Group Management. 7) Group Management other includes costs for 2024 for a total of 13 individuals. During the year, a total of 2 people left Group management who received salary and severance pay for part of the year. During 2024, 2 people have been added to the Group Management.Board of Directors’ Fees1), SEK 2025 2024 Johan Bygge, chairman of the Board 1,120,000 1,080,000 Sebastian Backlund 415,000 400,000 Lars-Gunnar Edh 415,000 400,000 Øystein Engebretsen 545,000 530,000 Paulo Gaspar 570,000 550,000 Pia Gideon 595,000 580,000 Henrik Hjalmarsson 455,000 400,000 Cecilia Lannebo 505,000 490,000 Total 4,620,000 4,430,000 1) Fees exclude travel allowances and include committee work. Board and Board Committee fees correspond to fees decided by the AGM and are regulated by the Board twice a year in October and April. allotment of ordinary shares. Where the EPS CAGR is between the minimum and the maximum level, the number of Performance Share Rights 2 and 3 that entitle to allotment of ordinary shares will be calculated on a linear basis. Target 3 The performance target is related to the Group’s official sustainability targets relating to workplace accidents measured in L TIFR (Lost Time Injury Frequency Rate), antibiotic use and greenhouse gas emissions measured in CO2e during the measurement period 2025-2027. If the L TIFR target for 2027 is meet the participants shall be allotted ordinary shares for 40 per cent of their Perfor- mance Share Rights 4, if the antibiotics target for 2027 is meet the participants shall be allotted ordinary shares for 20 per cent of their Performance Share Rights 4, if the CO2e target for 2027 is meet the participants shall be allotted ordinary shares for 40 per cent of their Performance Share Rights 4. For information about L TIP 2023 and L TIP 2024 see previous annual reports. The Board of Directors have decided to propose to the AGM 2026 a long-term incentive program for 2026 (L TIP 2026) for senior executives and key employees, which is designed to promote the long-term value growth of the company and the group and increase alignment between the interests of the participating individual and the company’s shareholders. L TIP 2026 has essentially the same structure as the long-term incentive program adopted at the annual general meeting of 2025 (L TIP 2025). Value and estimated costs for Long term incentive programs The long term incentive (L TIP) programs are accounted for in accordance with IFRS 2, Share based payments. The total cost for the programs is initially estimated as; number of shares to be allotted multiplied with the share price at program start and social charges. The programs are expensed linearly over the vesting time (three years). The Group settles the share-based program on a net basis for the majority of participants by withholding a number of shares with a fair value equivalent to the monetary value of the employee’s income tax. Only the remaining shares are transferred at the end of the vesting period. The vesting period for L TIP 2022 expired May 4, 2025. EPS CAGR for the period January 1, 2022 – December 31, 2024 amounted to 42,6 per cent and the relative TSR amounted to 212 per cent, which will resulted in the allotment of one share per investing share and 166,211 shares in total. The vesting period for L TIP 2023 expires May 4 2026, or until the allotment is made. EPS CAGR for the period January 1, 2023 – December 31, 2025 amounted to 40,6 per cent and the relative TSR amounted to 195 per cent, which will result in the allotment of one share per investing share. In total 164,507 shares have been reserved. L TIP 2024 and L TIP 2025 are based on criterion in line with the program proposed to the AGM 2026. Assuming full fulfilment of the requirements, relative TSR and EPS, and based on participants who as of 31 December 2025 were still employed and have not been dismissed or resigned, L TIP 2024 and L TIP 2025 will result in allotments of 238,735 and 290,927 shares respectively in the company. The value of the performance share rights amount to MSEK 23.4 for L TIP 2024 and MSEK 32.2 for L TIP 2025, based on share prices of SEK 78.4 and SEK 91.0. As per December 2025. Total accumulated accrued costs for L TIP 2023– L TIP 2025 amounted to MSEK 29.2 (21.6). This year L TIP cost amounted to MSEK 6 (10). Social security charges are expected to amount in average to approximately 23 (22) per cent of the market value of the shares allocated upon exercise of the performance share rights. The average per centage of social charges is dependent on the mix of nationalities participating in the programs. At year- end, Scandi Standard AB (publ) had 620,141 (733,726) shares in own custody. 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NOTE 6 Depreciation, amortisation and impairment of in tangible assets and pr operty, plant, equipment and rights-of-use assets NOTE 7 Fees and reimbursement to auditors MSEK 2025 2024 PricewaterhouseCoopers (PwC) Audit services 7 7 Audit related services 2 1 Tax services 1 1 Other services 1 1 Total 10 10 Annual audit includes the audit of the financial statements of the Parent Company and the Group, the accounting records and the administration of the Board of Directors and the Managing Director. It also includes other duties incumbent on the auditor of the company as well as advice arising from obser- vations made while performing the audit or carrying out such other duties. The share of the total fees of MSEK 7 to PwC AB (Sweden) which refers to non-audit services, defined by the EU audit legislation, amounts to MSEK 1 (2) whereof MSEK 0 (1) regarding audit services, MSEK 0 (0) regarding tax services and 0 (1) regarding other services. The services include advice from an accounting perspective for preparation of the financial reports, as well as other guidance regarding accounting and tax. as into 2026. The segment is seeing an encouraging turnaround in European demand for QSR and our new Ready-to-eat facility in the Netherlands provides a significant growth platform for Scandi Standard. Management expects continued increasing demand in this profitable segment over time. The impairment test shows no impairment need even if the EBITDA margin were to drop by more than three per centage points. Further information about Goodwill and intangible assets please see Note 11. MSEK 2025 2024 Depreciation, amortisation and write-down Intangible assets 74 63 Land and buildings 67 52 Plant and machinery 188 178 Equipment, tools, fixtures and fittings 43 48 Rights-of-use assets, buildings and land 36 45 Rights-of-use assets, plant, machinery and other technical assets1) 39 38 Total 448 425 1) Rights-of-use assets, plant, machinery and other technical assets includes equipment, tools, fixtures and fittings. Impairment The Group tests intangible assets with indefinite useful life for impairment annually. These assets include Goodwill and Brands with indefinite useful lives. The intangible assets are allocated to the cash generating units in which they generated cash flow. The Groups operational structure is an integrated matrix organisation, i.e. managers are held responsible both for product segments and geographies. An integral part of the Company strategy for continued growth and value creation is to share best practice, capitalize on product development and drive scale efficiencies across the Group. The cash generating units are the Groups operating segments which comprise of Ready-to-cook and Ready-to-eat. Cash flow expectations for the segments are based on business plans agreed by Group management for the next five years and on 2 per cent organic growth thereafter. The cash flows are discounted by a calculated WACC before tax at 9.3 (8.1) per cent for the segment Ready-to-cook and 9.6 (8.1) per cent for the segment Ready-to-eat based on current interest rates and the estimated return requirement for the segments. For the impairment testing at the end of 2025 all cash generating units are expected to perform in line with the market. EBITDA is expected to improve slightly over the forecasting period towards the Group’s medium-term target. The impairment test as of the end of the year shows that there is no need for impairment of the intangible assets in any of the cash generating units. The assumptions included in the calculations are forward looking and as such are inherently uncertain and based on management assumptions. To evaluate the risk that a change in any of the assumptions would have decreased the outcome of the impairment test, sensitivity analyses have been performed. The WACC used is based on long term variables and as such should be stable over time. Nevertheless, return requirements and interest rates can change. Testing for this variable shows no impairment when increasing the WACC two per centage points for Ready-to-cook and Ready-to-eat. Cash flow expectations in the cash generating units are an important varia- ble in the impairment test. The cash flows used are based on management’s best estimate of the future cash flow in each cash generating unit. There is a risk that these cash flows will be lower than expected over time, especially in the long term. Long term assumptions are based on a growth rate below the expected market growth to be prudent. The cash flows for the coming five years have greater impact on the value of the assets and are more important to test. Segment Ready-to-cook has seen material growth during 2025 with improved operating results primarily driven by increased sales and positive effects from investments to increase capacity and production efficiency. Expectations are that margins will continue to increase in the coming years. Based on management’s expectations, this improvement will primarily be driven by price development, operational efficiency and with capacity enhance- ments within existing plants in all countries. Scandi Standard’s business model allows for fluctuations in input prices to be transferred to the customer and provides good possibilities to manage price and cost increases over time. The impairment test shows no impairment need even if the EBITDA margin were to drop by more than two per centage point. Segment Ready-to-eat shows a turning point from quarter three 2025 after a challenging market development during the second half of 2023 until second half of 2025. Increased raw material costs have impacted the margins during 2025, with price adjustments to customers occurring during the year as well Scandi Standard Annual and Sustainability Report 2025 | 118ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 8 Finance income and finance expenses Income Expenses Total MSEK 2025 2024 2025 2024 2025 2024 Loans and other receivables Other income –1 1 – – –1 1 Other interest income 4 3 – – 4 3 Total 3 4 – – 3 4 Derivatives used in hedging Interest and currency swaps – – 0 11 0 11 Total – – 0 11 0 11 Other financial liabilities Interest expenses, pension plans – – 3 2 3 2 Interest expenses, borrowing – – –85 –86 –85 –86 Interest expenses, factoring, vendor financing – – –37 –46 –37 –46 Other borrowing expenses – – –13 –18 –13 –18 Other interest expenses – – –5 –6 –5 –6 Financial cost, leasing – – –13 –12 –13 –12 Currency effects – – –4 –3 –4 –3 Change in value of share in pension fund – – – – – – Total – – –153 –169 –153 –169 Total 3 4 –153 –158 –150 –155 NOTE 9 Exchange differences affecting income MSEK 2025 2024 Exchange differences affecting operating income –2 0 Exchange differences, financial items –4 –3 Total –6 –3 Exchange differences in operating income are included in: Other operating income/expense –2 0 Total –2 0 NOTE 10 Taxes Tax on income for the year, MSEK 2025 2024 Current tax expense (−) / tax income (+) Tax expense / income for the year –89 –71 Adjustment of tax attributable to prior years 0 0 Total current tax –89 –71 Deferred tax expense (−) / tax income (+) Deferred tax from changes in temporary differences 18 –16 Deferred tax income in capitalized losses carry for-ward 6 11 Deferred tax expense use of capitalized losses carry forward –20 –4 Total deferred tax 4 –9 Total recognised tax expense –86 –80 2025 2024 Reconciliation of effective tax % MSEK % MSEK Income after finance net 452 354 Anticipated tax according to enacted Swedish tax rate –20.6 –93 –20.6 –73 Effect of other tax rates for foreign subsidiaries 2.1 10 1.9 7 Unrecognised tax loss, incurred during the year –1.4 –6 –1.9 –7 Non-deductible expenses –1.0 –4 –4.3 –15 Non-taxable income 1.5 7 0.1 0 Effect of tax related to previous year 0.4 2 –0.2 –1 Reversal of income of associates 0.1 –1 0.2 1 Revaluation of deferred tax due to tax losses carry forward – – 2.0 7 Other – – 0.2 1 Recognised effective tax –19.0 –86 –22.5 –80 Tax items recognised in equity through other comprehensive income, MSEK 2025 2024 Actuarial gains and losses on defined benefit pension plans –2 –4 Cash flow hedges 0 –1 Total tax effects in other comprehensive income –2 –5 Scandi Standard Annual and Sustainability Report 2025 | 119ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Losses carryforward At the end of the year, the Group had losses carry forward of MSEK 796 (856). of which MSEK 481 (524) were recognised as base for the deferred tax asset MSEK 104 (124). Unrecognised losses carryforward amount to MSEK 315 (332) of which MSEK 143 (186) relates to Finland, MSEK 142 (118) to Lithuania and MSEK 28 (28) to Denmark. The deferred tax asset on recognised losses carryforward in Finland amount to MSEK 14 (20). The maturity for losses in Finland is 10 years and nothing expires within one year. Recognised losses carryforward in Denmark amount to MSEK 84 (104) where the lifetime is unrestricted. Recognised losses carryforward in the Netherlands amount to MSEK 6 (-) where the lifetime is unrestricted. Deferred tax has not been recognised on losses carryforward from the business in Lithuania acquired in October 2024. The Group has evaluated the recoverabilities based on 5 year long term plan which have shown convincing evidence that sufficient taxable profit will be available against unused tax losses. Hence the management has come to the conclusion that the tax asset reported concerning the losses in Finland, Denmark and the Netherlands should be further reported in the balance sheet. Other Scandi Standard is subject to the rules on additional tax, i.e. the rules on global minimum taxation according to Pillar 2, which has entered into force on 1 January 2024. The Group has concluded that additional tax will not arise for 2024 and 2025, based on the necessary calculations to control this. Change in deferred tax in temporary differences and loss carryforwards, MSEK Amount at beginning of period Recognised in income statement Recognised in OCI Changes in acquisition/ divestment of companies Translation differences Amount at end of period 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Intangible assets –135 –126 8 –7 – – – – 3 –2 –125 –135 Buildings –1 13 3 –9 – – – –6 0 0 3 –1 Machinery and equipment –71 –71 6 2 – – – – 2 –1 –63 –71 Right-of-use assets 4 5 0 0 – – – – 0 0 5 4 Other assets –4 0 –1 –4 – – – – 0 0 –5 –4 Pension provisions –14 –11 1 1 –2 –4 – – – – –15 –14 Other liabilities 6 5 1 3 0 –1 – 0 0 0 7 6 Losses carryforward 124 113 –14 7 – – – 0 –5 4 104 124 Other –11 –9 0 –2 – – – – – – –11 –11 Total –101 –81 4 –9 –2 –5 – –6 –1 1 –100 –101 Deferred tax assets/tax liabilities, MSEK Deferred tax assets Deferred tax liabilities Net 2025 2024 2025 2024 2025 2024 Intangible assets – – 125 135 –125 –135 Buildings 9 10 6 11 3 –1 Machinery and equipment – – 63 71 –63 –71 Right-of-use assets 5 4 0 0 5 4 Other assets 2 4 7 8 –5 –4 Pension provisions – – 15 14 –15 –14 Other liabilities 7 7 – 1 7 6 Losses carryforward 104 124 – – 104 124 Other 0 0 11 11 –11 –11 Total 127 149 227 250 –100 –101 Netting of offsetable assets/liabilities by jurisdiction –58 –71 –58 –71 – – Total net deferred tax asset/ tax liability 69 78 169 179 –100 –101 Deferred tax assets and liabilities nettable within the same jurisdiction were netted in 2025 and 2024. Note 10 cont. Scandi Standard Annual and Sustainability Report 2025 | 120ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 11 Intangible assets Goodwill Other intangible assets Brands Customer and supplier relationships Capitalized expenditure on development work Construction in progress Total other intangible assets MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Accumulated cost 913 961 454 470 740 784 405 352 41 20 1,640 1,626 Accumulated amortisation – – –84 –81 –420 –413 –170 –140 – – –673 –634 Accumulated write-down – – – – – – –1 – – –1 – Carrying amount 913 961 370 389 320 371 235 212 41 20 966 991 Balance at beginning of year 961 950 389 390 371 390 212 28 20 126 991 933 Investments – – – – – – – 1 85 84 85 85 Acquisitions – – – – – – – – – – – – Sale and disposals – – – – – – – – – – – – Amortisation for the year – – –4 –4 –30 –32 –39 –27 – – –74 –63 Write-down for the year – – – – – – –1 – – – –1 – Reclassifications – – – – – – 64 210 –64 –190 0 20 Translation differences –49 11 –14 4 –20 13 –1 0 – – –35 17 Book value 913 961 370 389 320 371 235 212 41 20 966 991 Allocation of Goodwill, brands and customer/supplier relationships Ready-to-cook 744 788 3091) 3201) 320 371 Ready-to-cook – – 492) 572) – – Ready-to-eat 169 173 121) 121) – – Total 913 961 370 389 320 371 1) Brands with indefinite useful life (Kronfågel, Ivars, Vitafågeln, Bosarp, Danpo, BornholmerHanen, Den Stolte Hane). 2) Brand with a limited useful life (Manor Farm). Further information about depreciation, amortisation, impairment and impairment testing, please see Note 6. Scandi Standard Annual and Sustainability Report 2025 | 121ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 12 Property, plant and equipment Land and land improvements Buildings and land Plant and machinery and other technical assets Equipment, tools, fixtures and fittings Construction in progress Total property, plant and equipment MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Accumulated cost 95 86 2,016 1,815 3,816 3,764 484 496 282 244 6,693 6,406 Accumulated depreciation –7 –13 –844 –818 –2,775 –2,766 –341 –344 – – –3,967 –3,941 Accumulated impairment – – – – – – – – – – – – Book value 88 73 1,172 997 1,040 998 144 152 282 244 2,726 2,464 Balance at beginning of the period 73 27 997 561 998 924 152 186 244 259 2,464 1,958 Investments1) 8 – 177 12 3 38 18 3 498 229 704 283 Acquisitions and divestments – 46 – 348 – 79 – 4 – 1 – 478 Sales and disposals – – 6 – –17 –1 –1 – – – –12 –1 Depreciation for the period –1 –1 –67 –52 –188 –178 –43 –48 – – –299 –279 Write-down for the period – – – – – – – – – – – – Reclassifications 11 1 121 110 296 115 21 4 –450 –249 – –20 Translation differences –4 – –62 18 –51 20 –4 2 –10 4 –131 45 Book value 88 73 1,172 997 1,040 998 144 152 282 244 2,726 2,464 1) Does not include capitalised interest. Government grants received that reduced the investment values amounted to MSEK 16 (0). For further information about the depreciation, amortisation and impairment, see Note 6. Non-current assets by geographic region1), MSEK 2025 2024 Sweden 1,041 965 Denmark 1,013 1,070 Norway 837 932 Ireland 975 1,108 Finland 288 323 Lithuania 501 320 Netherlands 223 – Total 4,878 4,718 1) Non-current assets (incl Intangible assets see note 11 and Rigth-of-use assets see note 13) excl. financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts. Scandi Standard Annual and Sustainability Report 2025 | 122ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 13 Rights-of-use assets Buildings and land Plant and machinery and other technical assets1) Total rights-of-use assets MSEK 2025 2024 2025 2024 2025 2024 Accumulated cost 472 502 162 127 635 629 Accumulated depreciation –295 –271 –62 –45 –357 –317 Accumulated impairment –4 – – –11 –4 – Carrying amount 173 231 100 71 273 301 Balance at beginning of the period 231 322 71 51 301 373 Expenditure/Increase of right-of-use assets – 34 72 58 72 91 Acquisitions and Divestments – – – – – – Sales and disposals/Decrease of right-of-use assets –16 –78 – –2 –16 –79 Depreciation for the period –36 –45 –39 –38 –75 –83 Impairment for the period – – – – – – Reclassifications – – – – – – Translation differences –6 –1 –4 1 –9 –1 Book value 173 231 100 71 273 301 1) Plant and machinery and other technical assets include equipment, tools, fixtures and fittings. Information about the maturity structure for the leasing liabilities, see Note 22. Further information about leasing contracts that are not apparent in the financial statements or have to be disclosed separately MSEK 2025 2024 Net interest expenses –13 –12 Leasing fees for – short term leases –16 –11 – assets with a low underlying value, not included in the fees for short term leases –3 –3 – variable leasing fees not included in leasing liabilities –21 –21 Reported in the statement of cash flows – investments in right-of-use assets –3 –1 – payments for amortization of leasing liabilities –69 –80 Total cashflow for leasing contracts –124 –128 NOTE 14 Participations in associated companies MSEK Dec 31, 2025 Dec 31, 2024 Balance at the beginning of the year 55 51 Share of income in associates 3 3 Other adjustment – – Translation difference –3 1 Carrying amount 54 55 Any impairment and reversal of impairment is recognised in the income statement classified as Share of income in associates. Information of associates in 2025 MSEK Assets Liabilities Net sales Income for the period Farmfood A/S 268 166 2 0 Nærbø Kyllingslakt AS 102 77 105 8 Information of associates in 2024 MSEK Assets Liabilities Net sales Income for the period Farmfood A/S 316 201 358 0 Nærbø Kyllingslakt AS 82 64 95 4 Group holdings in associates, December 31 2025 Corporate name Corp. identity no. Domicile Number of shares Share of capital, % Carrying amount in Group 2025, MSEK Carrying amount in Group 2024, MSEK Associates in the Group: Denmark Farmfood A/S 27 121 977 Loegstoer 10,000 33.3 32 33 Norway Nærbø Kyllingslakt AS 985 228 175 Nærbø, Hå 3,875 50.0 22 22 Total 54 55 Information about investments in subsidiaries, see Note 33. Scandi Standard Annual and Sustainability Report 2025 | 123ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 18 Trade receivables and other receivables MSEK Dec 31, 2025 Dec 31, 2024 Trade receivables 1,067 1,043 Other current receivables 139 124 Prepaid expenses and accrued income 88 115 Total 1,294 1,282 The closing loss allowances for trade receivables as follows: Trade receivables 2025 2024 Opening balance as at 1 January 2024 – calculated in accordance with IFRS 9 17 16 Increase in loss allowance, acquired companies – – Increase in loss allowance recognised in the income state-ment during the year 5 2 Receivables written off during the year as uncollectible –2 – Unused amount reversed 0 –1 Translation difference –1 1 Closing balance 31 December 19 17 Prepaid expenses and accrued income, MSEK Dec 31, 2025 Dec 31, 2024 Prepaid rent 5 14 Prepaid insurance 15 12 Prepayments to contract broiler producers 24 28 Other prepaid expenses 43 56 Other accrued income 1 4 Total 88 115 NOTE 15 Non-current financial assets MSEK Dec 31, 2025 Dec 31, 2024 Derivate instruments financial1) – – Other shares and interests 5 5 Other financial assets 11 3 Total 16 8 1) Consist in its entirety of interest swaps. NOTE 16 Biological assets The biological assets consist primarily of parent broiler stock that produces day-old chicks sold to contract broiler producers in Sweden. Breeding of chicken is conducted in Ireland, Denmark and in Lithuania. Of the Groups total value of MSEK 152 (128) whereof MSEK 81 (84) is parent broiler stock in Sweden. The lifespan of the parent broilers is about 60 weeks and the main source of revenue is sales of the day-old chicks that they produce. Each hen produces about 170 chicks between week 25 and week 60. Production costs include direct and indirect costs such as feed, rent and energy used. At the end of the year there were about 510,000 (540,000) hens in stock with a total fair value less cost of sales of MSEK 79 (84). The breeders chicken are valued at acquisition value as an approximation to fair value, which corresponds to MSEK 71 (44). NOTE 17 Inventory MSEK Dec 31, 2025 Dec 31, 2024 Raw materials and consumables 269 271 Goods in progress 18 23 Finished goods and merchandise 542 538 Total 829 831 Of total inventory MSEK 829 (831), MSEK 182 (182) were measured at net realizable value. Impairment losses of MSEK 7 (30) were recognised during the year. Previous impairments of MSEK –11 (–40 ) have been reversed during the year since the impairment is no longer remains. The inventory is not subject for pledge assets or con tingent liabilities. Age analysis of trade receivables, MSEK Dec 31, 2025 Expected loss rate in % Loss allowance Dec 31, 2024 Expected loss rate in % Loss allowance Receivables, not yet due 972 – – 953 – – Receivables, past due < 31 days 90 0% 0 78 – – 31–60 days 11 64% 7 11 – – 61–90 days 3 77% 2 2 99% 2 > 90 days 11 89% 10 15 96% 15 Total 1,086 19 1,060 17 Provision for doubtful debts –19 –17 Total 1,067 1,043 For information of assessment of trade receivables, see Note 22. Scandi Standard Annual and Sustainability Report 2025 | 124ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Retained earnings This item includes mainly accrued earnings in the Group, actuarial gains and losses in pension plans, treasury shares and performance-based incentive programs. Earnings per share 2025 2024 Income for the period attributable to owner of the Parent company, MSEK 367 275 Average number of shares 65,393,422 65,327,164 Earnings per share, SEK 5.61 4.20 Equity per share 2025 2024 Equity attributable to owners of the Parent company, MSEK 2,677 2,611 Number of outstanding shares 65,440,739 65,327,164 Equity per share, SEK 40.91 39.97 NOTE 19 Current interest-bearing assets and cash and cash equivalents MSEK Dec 31, 2025 Dec 31, 2024 Cash and bank balances 279 109 Total 279 109 NOTE 20 Equity Share capital The share capital amounted to SEK 659,663 (659,663) and represented 66,060,890 (66,060,890) shares of which the number of shares outstanding was 65, 440,739 (65,327,164). There is only one class of shares with equal voting rights and rights in the company’s profits and capital. The quota value of the share is SEK 0.009986 (0.009986). Each share carries one vote. Other paid-up capital Related to shareholder’s equity paid up by shareholders and dividend to share- holders which amounted to MSEK 163 (150) during 2025. No repurchase of own shares were made in 2025 or 2024. Fair value reserve For cash flow hedges where the hedged transaction has not yet occurred, the hedge reserve comprises the cumulative effective portion of gains or losses arising from remeasuring the hedging instruments at fair value. The cumulative gain or loss recognised in the hedge reserve will be recycled to income statement when the hedged transaction affects the income statement. Translation reserve The translation reserve includes all exchange rate differences that arise upon translation of financial statements of foreign operations that have prepared their financial statements in another currency than the presentation currency for the Group’s financial statements. The Parent Company and Group present their financial statements in Swedish kronor (SEK). Gains and losses on hedging instruments that qualify as hedges of a net investment in a foreign operation are also included in the translation reserve. NOTE 21 Interest-bearing liabilities Non-current interest-bearing liabilities MSEK Dec 31, 2025 Dec 31, 2024 Non-current liabilities to credit institutions1) 2,021 1,733 Derivative instruments 5 1 Non-current leasing liabilities 217 249 Total 2,243 1,984 Current interest-bearing liabilities MSEK Dec 31, 2025 Dec 31, 2024 Derivative instruments 3 13 Current leasing liabilities 70 64 Total 73 77 1) Is subject to the covenant calculation. Financing of the Scandi Standard Group is mainly carried out through the group company Scandinavian Standard Nordic AB. External financing in the subsidiaries is only conducted if this is optimal for the Group. Sustainability linked bank financing A syndicated sustainability linked loan agreement of approximately MSEK 3,100 was signed in 2024 with at tenor of five years. The financing consists of a fixed loan of MSEK 1,000 in multiple currencies and two revolving facilities of MSEK 1,100 and MEUR 95, respectively, with the possibility of borrowing in multiple currencies. The facilities are available to Scandinavian Standard Nordic AB and selected subsidiaries. Subject to approval by the lenders, there is also an option to further increase the amount borrowed under the bank loan by up to MSEK 1,500 (or equivalent in other currencies). Covenants The syndicated loan agreement contains two financial covenants, one regarding the gearing ratio (the ratio of interest-bearing net debt to EBITDA on a rolling twelve-month basis) and one regarding the interest coverage ratio (financial costs in relation to EBITDA on a rolling twelve-month basis). These are to be met quarterly. The definition of the gearing ratio in the loan agreement is different from that used in the calculation of the Group’s financial targets. The terms of the bank loan require that Scandi Standard achieve an interest coverage ratio of at least 3.50:1 and that the gearing ratio does not exceed 4.00:1. From the fifth year, the gearing ratio may not exceed 3.00:1. The bank loan also includes an option to, subject to approval from the lenders, increase the permitted gearing ratio for a period of twelve months following an acquisition. This option can be exercised twice during the term of the credit facilities. The financial covenants have been met every quarter since the loan agreement was signed. Sustainability criteria The loan agreement contains three different sustainability criteria, a climate target (absolute greenhouse gas emissions, covering scopes 1, 2 and 3), a target regarding the proportion of antibiotic-treated flocks, and a target related to work-- related injuries with absence per million hours worked. The outcome of these key indicators will be reported annually and may have a minor impact on the margin paid the coming year. Although Scandi Standard generally continued to show good progress on sustainability parameters during 2025, the acquired activities in Lithuania had an impact on Group performance since the sustaina- bility framework was not adjusted for the inclusion of Lithuania, and the perfor- mance thresholds were subsequently not met. The implementation of Scandi Standard´s policies and processes in the Lithuanian business is expected to improve the performance over time. Scandi Standard Annual and Sustainability Report 2025 | 125ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 22 Financial instruments and financial risk management Distribution of trade receivables by currency MSEK Dec 31, 2025 Dec 31, 2024 SEK 126 134 DKK 253 248 NOK 162 150 EUR 509 496 Other currencies 36 31 Total 1,086 1,060 Distribution of trade payables by currency MSEK Dec 31, 2025 Dec 31, 2024 SEK 328 389 DKK 420 425 NOK 295 285 EUR 453 432 Other currencies 2 2 Total 1,498 1,532 Translation exposure Translation exposure is the effect of changes in exchange rates when foreign subsidiaries’ income statements and balance sheets are translated into the Group’s presentation currency (SEK). Currency hedging of investments in foreign subsidiaries (net assets including Goodwill on acquired surplus v alues) is managed by means of loans in the subsidiaries’ currencies and is referred to as the equity hedge. These loans are recognised at the closing rate on the reporting date. In the company, exchange differences attributable to these loans (net of tax) and translation differences from the net assets of subsidiaries are recognised in other comprehensive income and accumulated in consolidated equity. At present, net investments in DKK, NOK and EUR are hedged. If the Swedish krona would change against other currencies by 5 per cent, equity would be impacted by MSEK +/− 147 (154), not taking into account the equity hedge. If the equity hedge is taken into account, equity would be impacted by MSEK +/− 75 (79), all other things being equal. Exchange rate fluctuations also affect the translation of foreign subsidiaries’ income statements to SEK. As this translation is not hedged, the translation difference is exposed to currency risk and as such is included in the sensitivity analysis below. Foreign-exchange sensitivity in transaction exposure Scandi Standard is primarily exposed to DKK, NOK and EUR. The different currencies represent both inflows and outflows against the functional currency. If, on translation of operating income, the Swedish krona would change against subsidiaries’ currencies by 5 per cent, this would have an impact of MSEK +/−23 (14) on operating income, all other things being equal. The impact is broken down as follows: DKK/SEK +/−2 (1) MSEK and NOK/SEK +/−11 (12) MSEK and EUR/SEK +/−10 (1) MSEK. The calculation does not take into account any changes in prices and customer behaviour caused by the exchange rate movements. RISK OF PRICE CHANGES FOR ENERGY Through its operations, Scandi Standard is exposed to risk of price changes for electricity and gas that will affect the group’s income statement and balance sheet. The objective for the group’s risk management of price changes for electricity and gas is to minimize the short-term effect of price changes impact on the group’s financial results and financial position. The strategy for managing the risk of energy price changes is to buy derivatives with fixed prices covering a certain percentage of expected consumption of electricity and gas for the next three years, in order to absorb fluctuations in price. The strategy must be revised annually. INTEREST RATE RISK Interest-bearing borrowing means that the Group is exposed to interest rate risk. Interest rate risk is the risk that changes in market interest rates will have an adverse effect on the Group’s financial results and cash flows. The strategy for managing the interest rate risk exposure is to have a balanced combination of floating and fixed interest rates. Interest rate risk can be managed through fixed loans, derivatives or a combination of both. Consideration shall be made to how sensitive the Company’s consolidated cash flows are to changes in market interest rates levels over a longer period. The duration is affected by Scandi Standard is exposed to different types of financial risk in the course of its international operations. Financial risk is the risk of fluctuations in the Group’s financial results, position and cash flow as a result of currency risk, interest rates risk, and refinancing- and liquidity risk and credit- and counter- party risks. CURRENCY RISK In the course of its operations, Scandi Standard is exposed to currency risk, in the form of exchange rate fluctuations affecting the Group’s financial results and position. The Group’s currency exposure includes both transaction exposure and translation exposure. The Group’s currency risk management is aimed at minimizing the short-term effect of exchange rate fluctuations and their adverse impact on the Group’s financial results and position. Transaction exposure Cash flows from purchase and sale of goods in currencies other than the respective currency of each Group company leads to transaction exposure. Each business unit shall identify their exposure to foreign exchange risk on a regular basis and report forecasted cash flows in foreign currencies to Group Finance. Transaction exposure should be reduced actively by netting the cash flow (matching in- and outflows per currency). Scandi Standards’ financial policy stipulates that transaction exposure should only be hedged for an actual committed transaction above MSEK 1 and with a payment term of 60 days or more. The end of the hedge term is expected payment date. Scandi Standard Annual and Sustainability Report 2025 | 126ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s reportFinancial statements Notes Auditor’s report
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nature of the business, presence of financial covenants, gearing level of the Company as well as future forecasted cash flows and the Group’s capability to repay debt. In an annual review the Board shall approve the pro portion of anticipated debt to be hedged for each year based on recommendation from Management. Upon such resolution the Management shall execute hedges as soon as possible. Derivatives approved by the Board for managing interest rate risk are interest rate swaps (IRS), interest floors, interest caps and currency interest swaps. During 2025, several interest swap agreements were signed, which significantly extended the Group’s interest fixing. On December 31, 2025, the Group’s outstanding liabilities to credit institutions, including outstanding interest rate swaps, had a weighted average fixed-rate period of 25 (4) months. As per the end of the reporting period, a 1 per centage point change in interest rates would not entail any significant change in the fair value of financial assets. During the coming 12-month period, a 1 per centage point increase/decrease in interest rate on interest-bearing liabilities would be impact by MSEK +/– 4 (21). REFINANCING RISK AND LIQUIDITY RISK Refinancing risk is the risk that costs will be higher and opportunities for financing limited when loans and other credit arrangements are renewed. Liquidity risk is the risk in discharging payment obligations. Scandi Standard limits its refinancing risk by having a well-diversified group of counterparties for its loan facilities. The average time to maturity for the Group’ s interest- bearing liabilities, excluding leasing obligations per December 31, 2025 was 4 (5) years. By constantly maintaining cash assets or unused credit facilities, the Group ensures it has sound payment capacity, thereby reducing the liquidity risk. Payment capacity, i.e. cash and cash equivalents and unused credit facilities, on December 31, 2025 was MSEK 1,300 (1,859). Liquidity risk from vendor financing is MSEK 344 (384). This is attributed to reversed factoring arrangements pro longing payment terms in Sweden, Denmark and Norway from 14–25 days to 60–90 days. The tables ‘Maturity structure’ show undiscounted contractual cash flows so these amounts are therefore not found in the balance sheet. Maturity structure of liabilities to credit institutions by currency 2025 MSEK 2026 2027 2028 2029 2030– Total SEK 16 16 16 466 – 514 NOK 20 20 20 359 – 419 DKK 13 13 13 372 – 412 EUR 27 27 27 757 – 839 Total 77 77 77 1,954 – 2,185 Of which interest 77 77 77 56 – 286 Maturity structure of liabilities to credit institutions by currency 2024 MSEK 2025 2026 2027 2028 2029– Total SEK 10 10 10 10 262 303 NOK 29 29 29 29 487 603 DKK 16 16 16 16 397 463 EUR 28 28 28 28 666 776 Total 84 84 84 84 1,812 2,146 Of which interest 84 84 84 84 63 397 Maturity structure of derivative instruments, nominal amounts December 31, 2025 MSEK 2026 2027 2028 2029– Fair value Interest rate derivatives 364 364 364 666 –4 Energy derivatives 39 22 12 – –4 Total 403 386 376 666 –8 Maturity structure of derivative instruments, nominal amounts December 31, 2024 MSEK 2025 2026 2027 2028– Fair value Interest rate derivatives 501 – – – 2 Energy derivatives 46 44 – – –15 Total 547 44 – – –12 Maturity structure of liabilities regarding leasing by currency 2025 MSEK 2026 2027 2028 2029 2030– Total SEK 34 21 18 16 29 117 NOK 18 17 17 17 55 124 DKK 23 19 14 9 10 75 EUR 5 0 –1 0 3 7 Total 80 56 47 41 97 322 Of which interest 11 8 6 4 7 36 Maturity structure of liabilities regarding leasing by currency 2024 MSEK 2025 2026 2027 2028 2029– Total SEK 37 34 21 18 51 162 NOK 18 18 17 17 75 144 DKK 15 11 7 4 2 38 EUR 4 2 1 0 3 11 Total 75 64 46 38 131 354 Of which interest 11 9 7 5 11 43 Maturity of short-term debt is up to one year. Maturity of trade payables is normally within approximately 60 days. CREDIT AND COUNTERPARTY RISK Credit and counterparty risk is the risk that the counterparty in a transaction will be unable to discharge its obligations, thereby causing a financial loss for Scandi Standard. Counterparty risk is limited by only accepting counter parties with high credit worthiness. Customer credit risk The credit risk associated with trade receivables is managed through special credit rating reviews. Scandi Standard has credit control procedures in place and obtains information about the financial position of customers from various credit-rating agencies. Note 22 cont. Scandi Standard Annual and Sustainability Report 2025 | 127ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Hedging instruments with associated hedged items and Derivative instruments Assets Liabilities Average hedging price/-rate Nominal amount Remaining term Nominal amount Booked value Booked value Annual change in value Accumulated change in value MSEK < 1 year > 1 year Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 2025 Dec 31, 2025 Cash flow hedges Interest related contract Interest swap 2.60% 364 1,395 1,759 501 – 2 –4 – –6 –6 Energy hedge 39 34 73 90 – – –4 –15 11 –4 Total hedging 403 1,429 1,832 591 – 2 –8 –15 5 –10 Currency hedging of foreign operations Currency related contract Derivatives instruments – Loan – 1,444 1,444 1,495 – – 1,444 1,495 92 – Hedged item – currency hedging of foreign operations – 1,444 1,444 1,495 1,444 1,495 – – –92 – Total derivative instrument – – – – – 1,444 1,495 – – Types of hedge accounting applied in the consolidated financial statements Type of exposure Type of hedged items Hedged risk Hedging instruments Hedging model1) Interest exposure Loans with variable interest rates Interest rate risk Interest rate swaps Cash flow hedges Currency exposure Investments in foreign operations Currency risk Loan in foreign currency Currency hedging of foreign operations Energy price exposure Forecasted purchase of electricity and gas Risk of energy price changes Energy derivatives Cash flow hedges 1) Deviations in critical conditions between hedging instruments and hedged items represent the main source of inefficiency for all types of hedging. Note 22 cont. Scandi Standard Annual and Sustainability Report 2025 | 128ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Financial assets and liabilities by measurement category December 31, 2025, MSEK Measured at amortised cost Measured at fair value through income statement1) Derivatives used in hedge accounting1) ASSETS Financial assets 16 – – Trade receivables 1,067 – – Other short-term receivables 28 – – Derivative instruments (Level 2), financial – – – Derivative instruments (Level 2), operational – – – Cash and cash equivalents 279 – – Total financial assets 1,390 – – LIABILITIES Non-current interest-bearing liabilities 2,021 – – Derivative instruments (Level 2), financial – – 4 Derivative instruments (Level 2), operational – – 4 Current liabilities 10 – – Trade payables 1,498 – – Accrued expenses (non personnel related ) 373 – – Total financial liabilities 3,902 – 8 December 31, 2024, MSEK Measured at amortised cost Measured at fair value through income statement1) Derivatives used in hedge accounting1) ASSETS Financial assets 8 – – Trade receivables 1,043 – – Other short-term receivables 23 – – Derivative instruments (Level 2), financial – – 2 Derivative instruments (Level 2), operational – – – Cash and cash equivalents 109 – – Total financial assets 1,182 – 2 LIABILITIES Non-current interest-bearing liabilities 1,733 – – Derivative instruments (Level 2), financial – – – Derivative instruments (Level 2), operational – – 15 Current liabilities 2 – – Trade payables 1,532 – – Accrued expenses (non personnel related ) 296 – – Total financial liabilities 3,564 – 15 Note 22 cont. Measurement techniques Derivatives in Level 2 are foreign currency forwards, interest rate swaps and energy hedges. Fair value measurement for foreign currency forwards is the present value of future cash flows based on the forward exchange rates at the balance sheet date. Fair value measurement for interest rate swaps is the present value of the estimated future cash flows based on observable yield curves. The fair value of energy hedge contracts is estimated based on current forward rates at the reporting date. Reported value for Non-current interest-bearing liabilities is a good approximation of fair value as credit risk is not significantly changed. For other financial instruments with no specific market value, the fair value is deemed to correspond to the carrying amount. 1) The Group’s financial assets and liabilities are measured in accordance with the following fair value hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: Inputs other than the quoted prices included in level 1 that are observe able for the asset or liability, i.e. quoted prices or data derived therefrom. Level 3: Unobservable inputs for measurement of the asset or liability. Scandi Standard Annual and Sustainability Report 2025 | 129ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Scandi Standard has both defined contribution and defined benefit pension plans. Defined contribution pension plans are applied for the main part of the Group’s pension obligations. Defined benefit pension plans are partly applied in Sweden and Ireland. The defined benefit plans, as recognised in the consolidated balance sheet, are mainly funded and relate to PRI pensions in Sweden. These plans are funded in Lantmännen’s ‘Gemensamma Pensionsstiftelse Grodden’ pension fund, which enables a number of companies that are part of, or have been part of, Lantmännen Group to safeguard their pension obligations. Each company has its own part of the fund’s assets. There is no obligation for the companies in the fund to make additional contributions to the fund. The obligations are also credit insured via PRI Pensionsgaranti, which is a mutual insurance company that guarantees employees’ future pensions. Now that the assets are in a separate fund, the obligations can be reduced by the market value of the fund’s assets when recognised in the balance sheet. Kronfågel AB and SweHatch AB are connected to the fund. Obligations accrued between June 2013 and December 2023 have been financed by direct charges, for instance to Alecta. Decisions have been taken to open the pension plan for active ITP2’s in Sweden as from January 1st 2024, ie for all employees in the companies born until 1978. All other new pension earnings within the Group are financed by direct charges. The obligations in Ireland concern closed pension plans. Pension plans with surpluses are recognised as an asset in the balance sheet under “Surplus in funded pension plans”. Other pension plans that are unfunded or partially funded are recognised under “Provisions for pensions”. Defined benefit obligations and value of plan assets in the Group: Defined benefit plans, MSEK Dec 31, 2025 Dec 31, 2024 Funded plans Defined benefit obligations under Swedish PRI Pensionsgaranti, plans 133 135 Fair value of plan assets –207 –204 Total net value of funded plans –74 –69 Surplus in funded pension plan recognised as asset 74 69 Partially funded pension plan recognised as liability – – Unfunded plans Other unfunded obligations 3 3 Total unfunded plans 3 3 Provision for pensions, net value –71 –66 Defined benefit pension plans are in Sweden and Ireland. NOTE 23 Pensions Pension cost in the income statement, MSEK 2025 2024 Defined benefit plans Incurred pension expense during the year –6 –6 Interest income / expenses 3 2 Cost of defined benefit plans –4 –4 Cost of defined contribution plans –179 –171 Total pension cost –182 –174 The cost is recognised in the following lines in the income statement Employee benefits expenses, Note 5 –185 –176 Finance expenses, Note 8 3 2 Total pension cost –182 –174 Pension-related charges in other comprehensive income, MSEK 2025 2024 Defined benefit plans Return on plan assets in excess of what is recognised as interest income in the income statement 5 11 Remeasurement of pension obligations: − Experience based adjustment of obligation –1 0 − Effect of changes in demographic assumptions – – − Effects of changes in financial assumptions 6 7 Total remeasurement of pension obligations 5 7 Total actuarial gains (+) and losses (−) 10 18 Tax in gain / loss –2 –4 Total recognised in other comprehensive income 8 14 Scandi Standard Annual and Sustainability Report 2025 | 130ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Changes in obligations, assets and net amount: Defined benefit obligations Plan assets Net 31 December, MSEK 2025 2024 2025 2024 2025 2024 Opening balance, funded plans 135 141 –204 –196 69 –55 Service cost 8 6 – – 8 6 Interest recognised in income statement 5 4 –7 –6 –3 –2 Payment of pension benefits –9 –9 – – –9 –9 Compensation received – – 9 9 9 9 Return in plan assets in excess of recognised interest – – –5 –11 –5 –11 Remeasurement of pension obligations recog- nised in other comprehensive income –5 –6 – – –5 –6 Closing balance, funded plans 133 135 –207 –204 –74 –69 Unfunded plans 3 3 – – 3 3 Closing balance, pension liability 136 139 –207 –204 –71 –66 Fair value of plan asset categories and share of total plan assets 2025 2024 MSEK % MSEK % Property 61 29.2 53 26.1 Fixed-interest investments 56 27.1 63 30.7 Equity investments 81 39.0 81 39.8 Alternative investments 9 4.4 7 3.3 Cash and cash equivalents 0 0.2 0 0.1 Total 207 100 204 100 Equity investments are all listed equity. Actuarial assumptions 2025 2024 Discount rate 3.75% 3.50% Future pension increase 2.00% 2.00% Inflation 2.00% 2.00% Mortality table DUS23 DUS23 A reduction of the discount rate by 0.25 per centage points would increase the pension obligation by MSEK 4 (4) while an increase of the discount rate by 0.25 per centage points would reduce the obligation by MSEK 4 (4). A change in the expected life span of one year would change the obligation by MSEK 6 (6). A change of the expected inflation rate of 0.25 per centage points would change the obligation by about MSEK 4 (4). The pension fund’s return was 5.8 (8.9) per cent and a change of 1 per centage point would change the value of plan assets by about MSEK 2 (2). Funded plans cover to 42.6 (43.4) per cent paid-up policy holders, to 57.4 (56.6) per cent retired persons, and 10.4 (10.2) per cent active employees. Duration is 12 (12) years. Expected payments under defined benefit pension plans in 2025 are MSEK 9 (9). For certain employees in Sweden insurance premiums was paid to Alecta under the ITP plan (individual supplementary pension). The plan is a multi employer defined benefit plan. Alecta is currently unable to disclose the information required to recognise the plans as a defined benefit pension plan. Consequently, pension plans under Alecta are recognised as defined contribution plans. MSEK 0 (0) of total pension cost of MSEK 185 (171) for defined contribution plans are related to Alecta premiums for ITP plans. As the defined benefit plan in Sweden is opened for concerned employees as from 2024 no premiums were paid to Alecta regarding the ITP2-plan. Alecta may distribute its surplus to policy holders and/or the insured. At the end of the year, Alecta’s surplus defined as collective funding ratio was 163 (161) per cent. The collective funding ratio reflects the market value of the assets of Alecta as a per centage of its pension obligations, calculated with Alecta’s Actuarial assumptions, which do not follow IAS 19. Note 23 cont. Scandi Standard Annual and Sustainability Report 2025 | 131ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Supplier finance arrangements Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity’s suppliers with early payment terms, compared to the related invoice payment due date. Supplier finance arrangements are applied since several years by the Group together with the suppliers /breeders of chickens that have accepted the possibility. The arrangement is provided by a bank and the companies have individual agreements with the bank, but the terms are equivalent. They pay a fee to the bank for the prolonged payment terms. The bank is also the main bank for the Group. The arrangement implies that the credit terms for the companies are pro- longed as the bank pays the invoices to their suppliers and then the companies compensate the bank. The total credit time has thereby been prolonged to 60 or 90 days from approximately 7 to 30 days. Due dates for the suppliers/breed- ers who participate in the supplier financing arrangements are 7 to 30 days. The companies are using the arrangements as integrated part of their commercial relations with the suppliers/breeders and the payables are a part of the working capital in the normal operations cycle. The arrangement is not considered to lead to any essential change of the payables nature or function. No additional collateral or guarantees have been provided to the bank. The debts are therefore classified as accounts payable. Changes that do not affect cash flows for the reported value of the liabilities covered by supplier financing consist entirely/mainly of exchange rate differences and are of minor value. Of the trade payables, the following amount is the made up of supplier financing MSEK Dec 31, 2025 Dec 31, 2024 Paid by the bank 532 453 Unpaid invoices 50 42 Total liabilities with supplier financing 583 494 Liquidity risk1) 344 384 1) See note 22 for more information. NOTE 24 Other provisions In corporate groups the size of Scandi Standard, there are normally a number of ongoing disputes. Scandi Standard assesses the most likely outcome of the disputes currently at issue, and where an outflow of financial resources is probable, a corresponding amount is recognised as a provision. MSEK Dec 31, 2025 Dec 31, 2024 Other provisions 9 13 Total 9 13 NOTE 25 Trade payables and other current liabilities MSEK Dec 31, 2025 Dec 31, 2024 Trade payables 1,498 1,532 Other current liabilities 82 82 Current leasing liabilities 70 64 Accrued expenses and prepaid income 769 677 Total 2,418 2,355 Accrued expenses and prepaid income MSEK Dec 31, 2025 Dec 31, 2024 Accrued personnel-related expenses 395 381 Bonuses and discounts 119 99 Other accrued expenses 264 212 Prepaid income –10 –15 Total 769 677 NOTE 26 Related party transactions Salaries and benefits received by senior management are reported in Note 5. Dividends from subsidiary have been received in the Parent Company during the year. Further information about associated companies can be found in Note 14. Other transactions with key persons in 2025 are related to purchases of feed from Lantmännen ekonomiska förening in which the Group owns a share. Related party transactions MSEK 2025 2024 Purchases of goods and services from associates 84 69 Sales of goods and services to associates 6 6 Trade receivables to associates 1 1 Trade payables 0 1 Loan to associates 7 7 Other transactions with key persons, MSEK 18 17 NOTE 27 Pledged assets and contingent liabilities Pledged assets For own liabilities MSEK Dec 31, 2025 Dec 31, 2024 Real estate mortgages – – Total – – Contingent liabilities MSEK Dec 31, 2025 Dec 31, 2024 Rent guarantee 10 9 Other contingent liabilities 112 113 Total 122 122 Other contingent liabilities consist for the most part of guarantees for subsidiaries and suppliers. Scandi Standard Annual and Sustainability Report 2025 | 132ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 28 Acquisitions and divestments Assets recognised as a part of the acquisition MSEK 2025 2024 Purchase price Paid in cash according to payment docs – 73 Redemption of liabilities in connection with the acquisition – 193 Deferred consideration, recognized liability – 17 Total – 283 Assets and liabilities at fair value MSEK 2025 2024 Property, plant and equipment – 329 Cash – 0 Current assets – 0 Deferred tax, net – –1 Grants from EU – –44 Interest bearing liabilities – –142 Current liabilities – –53 Redemption of liabilities in connection with the acquisition – 193 Acquired identifiable net assets – 283 Goodwill – – Acquired net assets – 283 Cash flow effect – –265 Acquisitions The acquisitions of six poultry farms in Lithuania and production facility in Netherlands during 2025 was recognised as asset deals and disclosed under note 12. No acquisitions or divestments during the year recognised as business combinations or divestments. During previous year Scandi Standard acquired an integrated state-of-the-art poultry processor in Lithuania. It consisted of an advanced processing plant, three poultry farms, and land plots, in total four companies. All overvalues was related to the fixed assets. The acquired entity was UAB Scandi Standard Lithuania Holding. The acquisition price amounted to MEUR 6.4 for the shares in the companies and MEUR 17 for settlement of the companies’ debts, a total of MEUR 23.4. Deferred considerations of MSEK 1.5 was connected to fulfilment of European Union Aid grants, which was paid out during the year. Transaction costs related to the acquisition was MSEK 5. The acquired business contributed with net sales of MSEK 11, and operating income of MSEK -14 for the period 10 October 2024 to 31 December 2024. Scandi Standard Annual and Sustainability Report 2025 | 133ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 29 Notes to the statement of cash flows The Group’s total liquidity, defined as cash, bank deposits and credit available under the provisions of applicable loan agreements, amounted to MSEK 1,300 (1,860) at the end of the year. 4) Reconciliation of Net interest-bearing debt The net interest-bearing debt and the movement of it is analysed below, for the presented periods. Net interest-bearing debt1), MSEK 2025 2024 Cash and cash equivalents 279 109 Derivative financial –4 2 Interest-bearing liabilities – repayable within one year –70 –64 Interest-bearing liabilities – repayable after one year –2,238 –1,982 Net interest-bearing debt –2,032 –1,935 Cash and bank deposits 279 109 Derivative financial –4 2 Gross debt – variable interest rates –2,307 –2,046 Net interest-bearing debt –2,032 –1,935 1) The Group utilises the same definition of Net interest-bearing debt as the current Credit agreement. Liabilities from financing activities Changes in gross debt, MSEK Interest- bearing liabilities Leasing liability Total Gross debt December 31, 2024 (Note 21) –1,733 –313 –2,046 Cash flows new loans –338 –53 –391 repayments 97 69 165 changes in credit facility –134 – –134 Total –374 16 –359 Foreign exchange adjustments 92 10 102 Other non-cash movements –6 1 –5 Total –88 11 97 Gross debt December 31 2025 (Note 21) –2,021 –286 –2,307 1) Paid finance items net, MSEK 2025 2024 Interest received 4 4 Interest paid –125 –143 Other paid financial items –25 –18 Total –146 –157 2a) Acquisitions of business and assets, MSEK 2025 2024 Acquired net assets Intangible assets – – Tangible assets – 522 Cash and cash equivalents – 0 Other assets – 0 Liabilities – –54 Total – 470 Paid purchase price – 453 Purchase price, recognised liability 16 17 Purchase price 16 470 Cash flow effect –16 –453 3) Cash and cash equivalents, MSEK 2025 2024 Cash and bank deposits 279 109 Total 279 109 NOTE 30 Significant events after the end of the financial year No significant events after the end of the financial year. Scandi Standard Annual and Sustainability Report 2025 | 134ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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NOTE 31 Fees and reimbursements to auditors MSEK 2025 2024 Öhrlings Pricewaterhouse Coopers AB Annual audit 0 0 Total 0 0 Notes to the Parent Company financial statements NOTE 32 Pledged assets and contingent liabilities MSEK Dec 31, 2025 Dec 31, 2024 Contingent liabilities 3 3 Guarantee for subsidiaries 15 18 Guarantor long-term multi currency credit facilities 3,100 3,200 Total 3,117 3,222 NOTE 33 Investments in subsidiaries MSEK Dec 31, 2025 Dec 31, 2024 Accumulated cost of acquisition 938 938 Carrying amount 938 938 MSEK 2025 2024 Balance at the beginning of the period 938 938 Carrying amount 938 938 Parent Company and Group holdings of interests in Group companies, December 31, 2025 The table includes directly-owned subsidiaries and indirectly-owned companies. During the year one company in Denmark has been started, one company in Denmark has been liquidated and Bosarpskyckling AB has been merged to Kronfågel AB. In previous year companies in Lithuania, Netherlands and Norway has been acquired. Company name Corporate identity no. Domicile Share, % Carrying amount, MSEK Scandinavian Standard Nordic AB 556921-0619 Stockholm, Sweden 100 938 Scandi Standard Denmark ApS 46 117 182 Farre, Denmark 100 Naapurin Maalaiskana OY 2644740-9 Lieto, Finland 100 Kronfågel AB 556145-4223 Stockholm, Sweden 100 SweHatch AB 556033-3386 Stockholm, Sweden 100 Danpo A/S 31 241 316 Farre, Denmark 100 Scandi Standard Norway AS 911 561 077 Oslo, Norway 100 Den Stolte Hane AS 980 403 815 Jæren, Norway 100 Scandi Standard Ireland Holding AB 559119-0789 Stockholm, Sweden 100 Carton Bros ULC 7313 Dublin, Ireland 100 Næringsvegen Eiendom Holding AS 932 918 404 Jæren, Norge 100 Næringsvegen Eiendom AS 985 281 475 Jæren, Norge 100 Scandi Standard Netherlands B.V. 867 181 515 Amsterdam, Netherlands 100 UAB Scandi Standard Lithuania Holding 306 982 871 Vilnius, Lithuania 100 UAB Alsiai 157 575 167 Vilnius, Lithuania 100 UAB Alsiu paukstynas 303 148 039 Vilnius, Lithuania 100 UAB Bazilionai 175 712 183 Vilnius, Lithuania 100 UAB Scandi Standard Baltics 157 547 221 Vilnius, Lithuania 100 Total, Parent Company 938 NOTE 34 Proposed appropriation of earnings The Board proposes a dividend for the financial year 2025 of SEK 3.30 (2.50) per share which corresponds to MSEK 216 (163) to the Annual General Meeting 2026 based on the number of outstanding shares as of December 31, 2025. The distribution is effected through the appropriation of the share premium reserve. The following earnings are at the disposal of the Annual General Meeting: SEK Share premium reserve 256,317,255 Accumulated surplus 590,264,539 Income for the year 177,115,159 Total 1,023,696,953 Dividend to shareholders 215,954,472 To be carried forward 807,742,481 Total 1,023,696,953 Note 33 cont. Scandi Standard Annual and Sustainability Report 2025 | 135ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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The Board of Directors’ and the Managing Director’s certification The Board of Directors and the Managing Director and CEO hereby certify that the consolidated financial statements and the annual report have been prepared in accordance with International Financial Reporting Standards as adopted by the European Parliament and Council Regulation (EC) No 1606/2002 of 19 July 2002 on the application of international accounting standards and generally accepted accounting principles, and give a true and fair view of the Group’s and Parent Company’s financial position and perfor- mance. The Board of Directors’ Report for the Group and Parent Company provides a true and fair overview of the development, financial position and performance of the Group and Parent Company, and describes significant risks and uncertainties faced by the Parent Company and Group companies. The Board of Directors and the Managing Director and CEO also certify that the annual report and the consolidated financial statements have been prepared in accordance with the sustainability reporting standards adopted pursuant to Article 29b of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC and repealing Council Directives 78/660/EEC and 83/349/EEC, and the specifications adopted pursuant to Article 8.4 of Regulation (EU) 2020/852 of the European Parliament and of the Council. Our audit report and our limited assurance report for the statutory sustainability statement has been submitted on 19 March 2026. Öhrlings PricewaterhouseCoopers AB Linda Corneliusson Authorized Public Accountant The Group’s and Parent Company’s annual financial statements will be presented for adoption by the Annual General Meeting on 28 April 2026. The annual report was adopted and signed by the Managing director and CEO, together with all members of the Board, on 18 March 2026. Johan Bygge Chairman of the Board Sebastian Backlund Board member Lars-Gunnar Edh Board member Øystein Engebretsen Board member Paulo Gaspar Vice Chairman Jonas Tunestål Managing director and CEO Pia Gideon Board member Henrik Hjalmarsson Board member Cecilia Lannebo Board member Scandi Standard Annual and Sustainability Report 2025 | 136ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Scandi Standard AB (publ) for the year 2025. The annual accounts and consolidated accounts of the company are included on pages 43–136 in this document except for the sustainability report on pages 51–99. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2025 and their financial performance and cash flow for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the sustainability report on pages 51–99. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company’s audit committee in accordance with the Audit Regulation (537/2014/EU) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014/EU) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Our audit approach Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the consolidated financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assump- tions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the group operates. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial state- ments are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Based on professional judgment, we determined certain quantitative materiality thresholds, including overall materiality for the financial statements as a whole. Based on these materiality thresholds, together with qualitative considerations, we determined the scope, nature, timing, and extent of our audit procedures. The purpose was to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Key audit matters Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. Auditor’s report Unofficial translation To the Annual General Meeting of Scandi Standard AB (publ), Corporate Identity Number 556921-0627 Scandi Standard Annual and Sustainability Report 2025 | 137ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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KEY AUDIT MATTER Valuation of inventory Refer to Annual report note 17 Inventory, note 1 Accounting policies and Note 2 Significant judgments, accounting estimates and assumptions. The inventory of finished goods includes frozen, chilled and ready-made chicken products and amounts to SEK 542 million on 31 December 2025. A large share of this item is located in Sweden and Denmark. Inventory of finished goods is a significant asset in the consolidated balance sheet. The inventory of finished goods is measured at the lower of cost or net realisable value. The net realisable value is the estimated sales value less expected selling expenses. An assessment of the estimated sales value requires assumptions and assessments by management that include subjective aspects, such as obsolescence and assessments of future events about demand and price performance, which are subject to uncertainties. The valuation of the inventory of finished goods is therefore a key audit matter in the audit. HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER Our audit included an assessment of the group’s accounting policy of provision for obsolescence, analytical procedures, data analysis on outgoing inventory matching against sales and inquiries with controllers of inventory accounts. We have performed spot checks on product calculations for the inventory of finished goods, inward and outward deliveries from inventory and taken part in stock-taking at all relevant inventory sites to verify their existence. Our audit has included a review of management’s assessments of obsolescence and impairment, including through analysis of inventory movements, expected future selling prices for primarily frozen products and products sold on the export market. We have tested on a sample basis that the acquisition value of products sold is not less than the net realizable value in January 2026. Measurement of goodwill and intangible assets with indefinite useful life Refer to the Annual Report Note 6 Depreciation, amortisation and impairment of intangible assets and property, plant,equipment and rights-of-use assets, Note 11 intangible assets, Note 1 accounting policies and Note 2 Significant judgments, accounting estimates and assumptions. The majority of Scandi Standard’s intangible assets have been acquired externally, mostly through business combina- tions. Assets with an indefinite useful life such as goodwill and certain brands are not subject to yearly depreciation. Instead, an annual test will show whether the carrying amount for the cash generating unit can still be supported. The cash-generating units correspond to the group’s operating segments, which consist of Ready-to-cook and Ready- to-eat. The carrying value of goodwill amounts to SEK 913 million on 31 December 2025. Intangible assets relating to brands with an indefinite life that are not subject to amortisation comprise various brand names acquired in Sweden, Denmark and Norway. The carrying value of such brands amounts to SEK 321 million on 31 December 2025. Goodwill and brands are significant assets in the consolidated balance sheet. No impairment charge has been recognised against goodwill or brand with indefinite life in 2025. Management’s estimates of the intangible assets’ potential to generate future cash flows and other assumptions are decisive when preparing the annual impairment tests. Given the significant elements of assumptions in and estimates within impairment tests of goodwill and brand, this constitutes a key audit matter. Our audit included the impairment tests of goodwill and other intangible assets with indefinite life have been performed by the use of generally accepted valuation methods, are mathematically correct, and by the use of reasonable assump- tions of, among others, future cash-flow estimates and discount rates. We have also evaluated the model for impairment tests and significant assumptions in impairment testing of future cash-flow estimates and discount rates for calculating the cash-generating unit’s value in use. In our evaluation, we have compared with the historic business performance and the group’s forecasts and strategic planning as well as with external data sources when possible and relevant. We have evaluated management’s sensitivity analysis of changes in the assumptions that could lead to impairment. We have assessed that disclosures in Note 6 and 11 relating to goodwill, brands, customer and supplier relationships are appropriate. Scandi Standard Annual and Sustainability Report 2025 | 138ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Other Information than the annual accounts and consolidated accounts This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1–30, 51–99 and 143–150. Other information also contains the Scandi Standard AB (publ) remuneration report 2025 which we received before the date of our auditor’s report. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS Accounting Standards as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Directors responsibilities and tasks in general, among other things oversee the compa- ny’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. A further description of our responsibility for the audit of the annual accounts and consolidated accounts is available on Revisorsinspektionen’s website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor’s report. Report on other legal and regulatory requirements THE AUDITOR’S EXAMINATION OF THE ADMINISTRATION OF THE COMPANY AND THE PROPOSED APPROPRIATIONS OF THE COMPANY’S PROFIT OR LOSS Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Scandi Standard AB (publ) for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’ equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organization is designed so that the account- ing, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing stand- ards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. A further description of our responsibility for the audit of the administration is available on Revisorsinspektionen’s website: www.revisorsinspektionen.se/ revisornsansvar. This description is part of the auditor’s report. Scandi Standard Annual and Sustainability Report 2025 | 139ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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THE AUDITOR’S EXAMINATION OF THE ESEF REPORT Opinion In addition to our audit of the annual accounts and consolidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consolidated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528) for Scandic Standard AB (publ) for the financial year 2025. Our examination and our opinion relate only to the statutory requirements. In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for Opinion We have performed the examination in accordance with FAR’s recommen- dation RevR 18 Examination of the Esef report. Our responsibility under this recommendation is described in more detail in the Auditors’ responsibility section. We are independent of Scandi Standard AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with the Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Esef report. The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor con- siders those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHMTL format and a reconciliation of the Esef report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated statement of financial performance, financial position, changes in equity, cash flow and disclosures in the Esef report have been marked with iXBRL in accordance with what follows from the Esef regulation. Öhrlings PricewaterhouseCoopers AB, Torsgatan 21, 113 97 Stockholm was appointed auditor of Scandi Standard AB (publ) by the general meeting of the shareholders on the 29 April 2025 and has been the company’s auditor since the 9 September 2013. Stockholm 19 March 2026 Öhrlings PricewaterhouseCoopers AB Linda Corneliusson Authorized Public Accountant This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. 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Auditor’s limited assurance report of Scandi Standard AB publ’s statutory sustainability statement Unofficial translation To the Annual General Meeting of Scandi Standard AB (publ), Corporate Identity Number 556921-0627 Conclusion We have conducted a limited assurance engagement of the sustainability statement for Scandi Standard AB (publ) for the financial year 2025. The sustainability statement is included on pages 51–99 in this document. Based on our limited assurance engagement as described in the section Auditor’s responsibility, nothing has come to our attention that causes us to believe that the sustainability statement does not, in all material respects, meet the requirements of the Swedish Annual Accounts Act which includes, • whether the sustainability statement meets the requirements of ESRS, • whether the process the company has carried out to identify repor ted sustainability information has been conducted as described in IRO - 1 of the sustainability statement, • compliance with the reporting requirements of the EU’s Green Taxonomy Regulation Article 8. Basis for conclusion We have conducted the limited assurance engagement in accordance with FAR’s recommendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten . Our responsibility according to this recommendation is further described in the section Auditor’s responsibility. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other matter The sustainability statement for the previous financial year has not been subject to a limited assurance engagement and no review of the comparative figures in the sustainability statement for the year 2025 has therefore been performed. Other information than the sustainability statement This document also contains other information than the sustainability statement and is found on pages 1–41, 43–50, 100–135 and 143–150. The Board of Directors and the Managing Director are responsible for this other information. Our conclusion on the sustainability statement does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the sustain- ability statement. In this procedure we also take into account our knowledge otherwise obtained in the limited assurance engagement and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors, and the Managing Director, are responsible for the preparation of sustainability statement in accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director determine necessary to enable the preparation of the sustainability statement that is free from material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express a conclusion on whether the sustainability report has been prepared in accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act based on our review. The limited assurance engagement has been conducted in accordance with FAR’s recommendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhets- rapporten. This recommendation requires that we plan and perform our procedures to obtain limited assurance that the sustainability statement is prepared in accordance with these requirements. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engage- ment. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. This means that it is not possible for us to obtain such assurance that we become aware of all significant matters that could have been identified if a reasonable assurance engagement had been performed. Our firm applies ISQM 1 (International Standard on Quality Management), which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. We are independent of Scandi Standard AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. A limited assurance engagement involves performing procedures to obtain evidence about the sustainability statement. The auditor selects the procedures to be performed, including assessing the risks of material misstatements in the sustainability statement, whether due to fraud or error. In this risk assessment, the auditor considers the parts of the internal control that are relevant to how the Board of Directors and the Managing Director prepares the sustainability statement, in order to design procedures that are appropriate under the circumstances, but not for the purpose of providing a conclusion on the effectiveness of the company’s internal control. The review consists of making inquiries, primarily of persons responsible for the preparation of the sustainability statement, performing analytical review, and conducting other limited review procedures. Scandi Standard Annual and Sustainability Report 2025 | 141ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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The review procedures primarily include: Our procedures regarding the process that the company has implemented to identify sustainability information to be reported included, but were not limited to, the following: • Making inquiries to management and others in the company to understand the sources of the information used. • Reviewing the company’s internal documentation; • Evaluating whether the information obtained is consistent with the description of the process in the sustainability statement. Our procedures regarding the sustainability statement included, but were not limited to, the following: • Making inquiries to management and other persons in the company to obtain an understanding of the internal control environment, the reporting process, and the information systems relevant to the preparation of the sustainability statement. • Evaluating whether the information identified as material by the company is included in the sustainability statement. • Conducting inquiries, analytical procedures and sample testing of selected disclosures in the sustainability statement. • Evaluating whether the presentation of the sustainability statement is consistent with ESRS. • Evaluate whether the structure and the presentation of the sustainability statement is in accordance with the ESRS. Our procedures regarding the taxonomy disclosures included, but were not limited to, the following: • Conducting inquiries to management and other people in the company to obtain an understanding of the process and sources of information used in the taxonomy disclosures. • Performed analytical review procedures regarding selected taxonomy information. • Evaluated whether the presentation of taxonomy information is consistent with the requirements of the EU Taxonomy Regulation. Inherent limitations in preparing the sustainability statement In reporting forward-looking information in accordance with ESRS, the Board of Directors and the Managing Director of Scandi Standard AB (publ) are required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by Scandi Standard AB (publ). Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Stockholm 19 March 2026 Öhrlings PricewaterhouseCoopers AB Linda Corneliusson Authorized Public Accountant This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. Scandi Standard Annual and Sustainability Report 2025 | 142ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS’ REPORT FINANCIAL INFORMATION OTHER Financial statements Notes Auditor’s report
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Five-year summary 144 Segment information by quarter 145 Alternative KPIs 148 Definitions 149 Annual General Meeting 150 OTHER Scandi Standard Annual and Sustainability Report 2025 | 143ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER
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Five-year summary MSEK, unless otherwise stated 2025 2024 2023 2022 2021 Net sales 14,083 13,024 13,014 12,119 10,101 EBITDA 1,047 931 880 722 598 Operating income 603 509 457 290 222 Income for the year 367 275 273 138 103 EPS, SEK 5.61 4.20 4.11 2.02 1.60 Adjusted EBITDA1) 1,047 931 871 722 589 Adjusted EBITDA-margin1),% 7.4 7.1 6.7 6.0 5.8 Adjusted operating income1) 603 509 449 290 213 Adjusted operating margin1),% 4.3 3.9 3.4 2.4 2.1 Dividend, SEK2) 3.30 2.50 2.30 1.15 – Operating cash flow 243 443 671 197 347 Capital expenditure, net 783 367 338 311 306 Return on capital employed (ROCE)1), % 12.5 11.8 11.0 6.7 5.2 Equity to assets ratio, % 35.0 35.9 36.0 33.5 30.0 Average number of employees 3,670 3,366 3,204 3,294 3,215 1) Adjusted for non-comparable items, see table to the right. 2) Board proposal for dividend for 2025. Non-comparable items in EBITDA and operating income1) 2025 2024 2023 2022 2021 Earn out Debt adjustment2) – – – – 9 Divestment of Rokkedahl Foods Aps3) – – 8 – – Total non-comparable items in EBITDA – – 8 – 9 1) Scandi Standard implemented a new definition for treatment of items affecting comparability in the first quarter 2021 which implies a stricter classification of such items. 2) Income of MSEK 22 in the year 2021 related to decreased earn-out debt resulting from the final purchase price payment relating to the acquisition of Manor Farm. In addition, for the year 2021, cost of MSEK –13 resulting from the final purchase price payment relating to the acquisition of the Finnish business. 3) Divestment of majority stake in Rokkedahl Food Aps. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 144
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Segment information by quarter Ready-to-cook, MSEK Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net sales 2,600 2,706 2,873 2,604 10,783 2,441 2,546 2,536 2,399 9,923 2,373 2,495 2,431 2,278 9,577 Adjusted EBITDA 181 193 257 209 841 180 181 193 153 707 115 139 182 161 597 Depreciations –79 –70 –90 –83 –323 –75 –74 –73 –84 –305 –71 –79 –75 –75 –299 Adjusted EBITA 102 123 167 126 519 105 107 120 69 402 44 60 107 86 297 Amortizations –9 –9 –8 –9 –35 –10 –9 –9 –9 –37 –13 –12 –10 –10 –45 Adjusted EBIT 93 115 159 120 487 96 98 111 63 368 31 48 97 77 253 Non-comparable items – – – – – – – – – – – – 8 – 8 EBIT1) 93 115 159 120 487 96 98 111 63 368 31 48 105 77 261 Adjusted EBITDA margin, % 7.0% 7.1% 8.9% 8.0% 7.8% 7.4% 7.1% 7.6% 6.4% 7.1% 4.8% 5.6% 7.5% 7.1% 6.2% Adjusted EBITA margin, % 3.9% 4.6% 5.8% 4.8% 4.8% 4.3% 4.2% 4.7% 2.9% 4.1% 1.9% 2.4% 4.4% 3.8% 3.1% Adjusted EBIT margin, % 3.6% 4.2% 5.5% 4.6% 4.5% 3.9% 3.8% 4.4% 2.6% 3.7% 1.3% 1.9% 4.0% 3.4% 2.6% EBIT margin, % 3.6% 4.2% 5.5% 4.6% 4.5% 3.9% 3.8% 4.4% 2.6% 3.7% 1.3% 1.9% 4.3% 3.4% 2.7% 1) Includes income from associated companies. Ready-to-eat, MSEK Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net sales 646 710 713 716 2,785 594 686 677 644 2,601 765 774 734 600 2,873 Adjusted EBITDA 46 34 36 47 163 39 52 59 56 206 58 74 47 36 215 Depreciations –16 –12 –19 –21 –66 –14 –14 –15 –16 –59 –14 –15 –15 –14 –57 Adjusted EBITA 31 23 17 27 97 25 38 44 40 148 45 59 32 22 158 Amortizations – – – – – – – – – – – – – – – Adjusted EBIT 31 23 17 27 97 25 38 44 40 148 45 59 32 22 158 Non-comparable items – – – – – – – – – – – – – – – EBIT1) 31 23 17 27 97 25 38 44 40 148 45 59 32 22 158 Adjusted EBITDA margin, % 7.2% 4.8% 5.1% 6.6% 5.9% 6.6% 7.6% 8.7% 8.7% 7.9% 7.6% 9.5% 6.4% 6.0% 7.5% Adjusted EBITA margin, % 4.7% 3.2% 2.4% 3.7% 3.5% 4.2% 5.6% 6.6% 6.2% 5.7% 5.9% 7.7% 4.3% 3.7% 5.5% Adjusted EBIT margin, % 4.7% 3.2% 2.4% 3.7% 3.5% 4.2% 5.6% 6.6% 6.2% 5.7% 5.9% 7.7% 4.3% 3.7% 5.5% EBIT margin, % 4.7% 3.2% 2.4% 3.7% 3.5% 4.2% 5.6% 6.6% 6.2% 5.7% 5.9% 7.7% 4.3% 3.7% 5.5% 1) Includes income from associated companies. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 145
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Other, MSEK Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net sales 130 128 137 121 516 125 118 129 127 499 146 142 143 134 564 Adjusted EBITDA 13 11 19 19 62 8 6 11 10 36 24 25 12 10 71 Depreciations –1 –1 –1 –1 –4 –1 –1 –1 –1 –4 –1 –1 –2 0 –3 Adjusted EBITA 12 10 18 18 58 7 5 10 9 32 24 24 11 10 68 Amortizations 0 0 0 0 0 – 0 0 0 1 – – – – – Adjusted EBIT 12 10 18 18 58 7 5 10 9 32 24 24 11 10 68 Non-comparable items – – – – – – – – – – – – – – – EBIT1) 12 10 18 18 58 7 5 10 9 32 24 24 11 10 68 Adjusted EBITDA margin, % 9.9% 8.3% 14.0% 15.8% 12.0% 6.4% 5.2% 8.7% 8.2% 7.2% 16.7% 17.8% 8.6% 7.3% 12.7% Adjusted EBITA margin, % 9.2% 7.5% 13.2% 15.1% 11.2% 5.7% 4.4% 7.9% 7.3% 6.3% 16.2% 17.1% 7.4% 7.3% 12.1% Adjusted EBIT margin, % 9.2% 7.5% 13.2% 15.1% 11.2% 5.8% 4.5% 8.0% 7.4% 6.4% 16.2% 17.1% 7.5% 7.3% 12.1% EBIT margin, % 9.2% 7.5% 13.2% 15.1% 11.2% 5.8% 4.5% 8.0% 7.4% 6.4% 16.2% 17.1% 7.5% 7.3% 12.1% 1) Includes income from associated companies. Group Cost, MSEK Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2024 Q2 2024 Q3 2024 Q4 204 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net sales – – – – 0 – – – – 0 – – – – – Adjusted EBITDA –7 7 –16 –3 –19 –2 –9 –7 0 –19 –2 –8 –2 – –12 Depreciations –5 –17 7 –6 –20 –4 –5 –5 –5 –20 –5 –3 –5 –4 –16 Adjusted EBITA –12 –9 –9 –9 –39 –6 –15 –12 –5 –38 –6 –11 –7 –4 –28 Amortizations – – – – – – – – – – – – –2 – –2 Adjusted EBIT –12 –9 –9 –9 –39 –6 –15 –12 –5 –38 –6 –11 –9 –4 –31 Non-comparable items – – – – – – – – – 0 – – – – – EBIT1) –12 –9 –9 –9 –39 –6 –15 –12 –5 –38 –6 –11 –9 –4 –31 Adjusted EBITDA margin, % – – – – – – – – – – – – – – – Adjusted EBITA margin, % – – – – – – – – – – – – – – – Adjusted EBIT margin, % – – – – – – – – – – – – – – – EBIT margin, % – – – – – – – – – – – – – – – 1) Includes income from associated companies. Segment information by quarter, cont. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 146
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Segment information by quarter, cont. TOTAL, MSEK Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net sales 3,376 3,543 3,723 3,441 14,083 3,160 3,350 3,343 3,170 13,024 3,284 3,411 3,308 3,011 13,014 Adjusted EBITDA 233 246 296 273 1,047 225 231 256 219 931 196 230 240 206 871 Depreciations –100 –99 –102 –111 –413 –94 –95 –94 –106 –388 –90 –97 –97 –93 –376 Adjusted EBITA 133 146 194 162 635 131 136 162 113 543 106 133 143 114 495 Amortizations –9 –9 –8 –9 –35 –10 –9 –9 –9 –37 –13 –12 –12 –10 –47 Adjusted EBIT 124 138 185 156 603 122 127 153 107 509 93 121 130 105 449 Non-comparable items – – – – – – – – – – – – 8 – 8 EBIT1) 124 138 185 156 603 122 127 153 107 509 93 121 139 105 457 Adjusted EBITDA margin, % 6.9% 6.9% 8.0% 7.9% 7.4% 7.1% 6.9% 7.7% 6.9% 7.1% 6.0% 6.7% 7.2% 6.9% 6.7% Adjusted EBITA margin, % 3.9% 4.1% 5.2% 4.7% 4.5% 4.2% 4.1% 4.9% 3.6% 4.2% 3.2% 3.9% 4.3% 3.8% 3.8% Adjusted EBIT margin, % 3.7% 3.9% 5.0% 4.5% 4.3% 3.9% 3.8% 4.6% 3.4% 3.9% 2.8% 3.5% 3.9% 3.5% 3.4% EBIT margin, % 3.7% 3.9% 5.0% 4.5% 4.3% 3.9% 3.8% 4.6% 3.4% 3.9% 2.8% 3.5% 4.2% 3.5% 3.5% 1) Includes income from associated companies. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 147
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Alternative KPIs From income statement, MSEK 2025 2024 Net sales A 14,083 13,024 Income for the year B 367 275 + Reversal of tax on income for the year 86 80 Income after finance net C 452 354 + Reversal of financial income and expenses, net 150 154 Operating income D 603 509 + Reversal of depreciation, amortization and impairment 448 425 + Reversal of share of income of associates –3 –3 EBITDA E 1,047 931 Non-comparable items in income for the period F – – Adjusted operating income for the period D+F 603 509 Adjusted operating margin, % (D+F)/A 4.3 3.9 Non-comparable items in EBITDA G – – Adjusted EBITDA E+G 1,047 931 Adjusted EBITDA-margin, % (E+G)/A 7.4 7.1 From balance sheet, MSEK Dec 31,2025 Dec 31,2024 Total assets 7,646 7,279 Non-current non-interest-bearing liabilities − Deferred tax liabilities –169 –179 − Other non-current liabilities –74 –77 Total non-current interest-bearing liabilities –243 –256 Current non-interest-bearing liabilities Trade payables –1,498 –1,532 Tax payables –51 –45 Other current liabilities –82 –82 Accrued expenses and prepaid income –769 –677 Total current non-interest-bearing liabilities –2,399 –2,336 Capital employed 5,004 4,687 Cash and cash equivalents –279 –109 Operating capital 4,725 4,579 Average capital employed H 4,846 4,356 Average operating capital I 4,652 4,299 Operating income, L TM 603 509 Adjusted operating income, L TM J 603 509 Finance income K 3 4 Adjusted return on capital employed, % (ROCE) (J+K)/H 12.5 11.8 Adjusted return on operating capital, % (ROC) J/I 13.0 11.8 Interest-bearing liabilities Non-current interest-bearing liabilities 2,021 1,733 Non-current leasing liabilities 217 249 Derivatives instruments 4 –2 Current interest-bearing liabilities 70 64 Total interest-bearing liabilities 2,311 2,044 Cash and cash equivalents –279 –109 Net interest-bearing debt 2,032 1,935 The Scandi Standard Group uses the below alternative KPIs. The Group believes that the presented alternative KPIs are useful when reading the financial statements in order to understand the Group’s ability to generate results before investments, assess the Group’s opportunities to dividends and strategic investments and to assess the Group’s ability to fulfil its financial obligations. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 148
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Definitions Adjusted income for the period Income for the period adjusted for non- comparable items. Animal welfare indicator (foot score) Leading industry indicator for animal welfare. The score is measured according to industry standards, meaning assessing 100 feet per flock independent of flock size. CAGR Yearly average growth. Capital employed Total assets less non-interest-bearing liabilities, including deferred tax liabilities. Average Capital employed Average capital employed as of the two last years. Adjusted return on operating capital (ROC) Adjusted operating income last twelve months (R12M) divided by average operating capital. Critical complaints Includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content, or sell-by dates. CO 2e/kg product Location-based method used for calculations. Emission factors from DEFRA 2024, AIB 2024, and IEA 2024 and supplier- specific or country average emissions factors for district heating. Includes approximately 80% of Scope 1 and Scope 2 emissions for Scandi Standard Group, with exception for technical gases, refrigerants and owned and leased vehicles that are reported yearly. COGS Cost of goods sold. Earnings per share (EPS) Income for the period. attributable to the shareholders. divided by the average number of shares. Adjusted earnings per share (EPS) Adjusted income for the period attributable to the shareholders divided by the average number of shares. EBIT Operating income. EBIT/kg Operating income divided by processed chicken kg. Adjusted operating income (Adj. EBIT) Operating income (EBIT) adjusted for non-comparable items. EBITA Operating income before amortisation and impairment and share of income of associates. Adjusted EBITA Operating income before amortisation and impairment and share of income of associates. adjusted for non-comparable items. Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. EBITDA Operating income before depreciation. amortisation and impairment and share of income of associates. Adjusted EBITDA Operating income before depreciation. amortisation and impairment and share of income of associates. adjusted for non- comparable items. EBITDA margin EBITDA as a percentage of net sales. Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales. Equity to assets ratio Equity in relation to Total assets. Feed conversion rate (kg feed/kg live weight) Includes only conventional chicken breeds (approximately 70% of the production). The figures are based on farmer’s reported figures in all countries except in Sweden, where estimated country averages are used. Grill weight, tonne Grill weight is the weight of the gutted bird. LTI per million hours worked Injuries lead to absence at least the next day, per million hours worked. Net interest-bearing debt (NIBID) Interest-bearing debt excluding arrangement fees less cash and cash equivalents. Net sales Net sales is gross sales less sales discounts and joint marketing allowances. Non-comparable items Transactions or events that rarely occur or are unusual in ordinary business operations and hence are unlikely to occur again. Operating capital Total assets less cash and cash equivalents and non-interest-bearing liabilities. including deferred tax liabilities. Average operating capital Average operating capital as of the two last years. Operating cash flow Cash flow from operating activities excluding paid finance items net and paid current income tax with the addition of net capital expenditure and net increase in leasing assets. Adjusted operating cash flow Cash flow adjusted for non-comparable items. Operating margin (EBIT margin) Operating income (EBIT) as a percentage of net sales. Adjusted operating margin (Adj. EBIT margin) Adjusted operating income (Adj. EBIT) as a percentage of net sales. Other operating expenses Other operating expenses include marketing, Group personnel and other administrative costs. Other operating revenues Other operating revenue is revenue not related to sales of chicken such as rent of excess land/buildings to other users and payment by non-employees for use of the Company’s canteens. Production costs Production costs include direct and indirect personnel costs related to production and other production-related costs. Raw materials and consumables Costs of raw materials and other consum- ables include the purchase costs of live chicken and other raw materials such as packaging etc. Return on capital employed (ROCE) Operating income last twelve months (R12M) plus interest income divided by average capital employed. Return on equity Income for the period last twelve months (R12M) divided by average total equity. Return on operating capital (ROC) Operating income last twelve months (R12M) divided by average operating capital. Adjusted return on capital employed (ROCE) Adjusted operating income last twelve months (R12M) plus interest income divided by average capital employed. RTC Ready-to-cook. Products that require cooking. RTE Ready-to-eat. Products that are cooked and may be consumed directly or after heating up. R12M Rolling twelve months. Specific Explanatory items (exceptional items) Transactions or events that do not qualify as non-comparable items as they are likely to occur from time to time in the ordinary business. Disclosure about these items is useful to understand and assess the performance of the business. Use of antibiotics Use of antibiotics is measured as the share of treated flocks. Working capital Total inventory and operating receivables less non-interest-bearing current liabilities. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 149
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Annual General Meeting Annual General Meeting 2026 will be held on Tuesday 28 April 2026 at 7A Posthuset, Vasagatan 28 in Stockholm. Notice will be published in Post- och Inrikes Tidningar and at the company website https:/ /investors.scandistandard.com/en/general-meeting Forward looking statement This report contains forward-looking information based on the current expectations of company manage- ment. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared with what is stated in the forward-looking information, due to such factors as, but not limited to, changed conditions regarding finances, market and competition, supply and productions constraints, changes in legal and regulatory requirements and other political measures, and fluctuations in exchange rates. ABOUT US STRATEGY CORPORATE GOVERNANCE DIRECTORS' REPORT FINANCIAL INFORMATION OTHER Scandi Standard Annual and Sustainability Report 2025 | 150
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Production: Scandi Standard in cooperation with Rippler Communications. Script: Scandi Standard. Photo: Scandi Standard’s own images, Kronfågel’s image bank, Jenny Lagerqvist, Sandra Birgersdotter, Tommy Ellingsen, Mattias Bardå and more.
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Scandi Standard AB (publ) Strandbergsgatan 55 Box 30174 SE-112 51 Stockholm Sweden Reg no. 556921-0627 Domicile: Stockholm info@scandistandard.com scandistandard.com kronfagel.se danpo.dk denstoltehane.no naapurinmaalaiskana.fi chicken.ie