Interim report, second quarter 2015

  · Net sales increased by 3 percent to MSEK 1,341.3 (1,302.9), and by 2 percent
at constant exchange rates. Net sales increased by 8 percent in Sweden, 6
percent in Denmark and decreased by 7 percent in Norway at constant exchange
rates.
  · Adjusted operating income increased by 1 percent to MSEK 77.0 (76.3)
corresponding to an adjusted operating margin of 5.7 (5.9) percent.
  · Income for the period amounted to MSEK 45.7 (-48.2) and earnings per share
was SEK 0.76 (-0.95).
  · Adjusted operating cash flow amounted to MSEK 136.0 (186.6) with a reduction
of working capital but not as much as last year.
  · Deliveries to Coop Norway under the new supply agreement, which also
includes the stores acquired from ICA Norway, started as of August.
  · The acquisition of Huttulan Kukko Oy’s (Huttulan) factory and business in
Finland was completed on 25 May.
  · An agreement was signed on 15 June to acquire Lagerbergs, the third largest
producer of chicken products in Sweden, pending approval of the Swedish
Competition Authority.

MSEK            Q2 2015  Q2 2014  Change  H1 2015  H1 2014  Change
Net sales       1 341.3  1 302.9      3%  2 650.9  2 656.3      0%
Operating          72.8     36.9     97%    140.4    107.3     31%
income
Income for the     45.7    -48.2       -     87.3    -18.9       -
period
EPS                0.76    -0.95       -     1.45    -0.38       -
Adjusted*         123.8    119.3      4%    237.8    239.4     -1%
EBITDA
Adjusted*          77.0     76.3      1%    144.6    154.9     -7%
operating
income
Adjusted*          5.7%     5.9%       -     5.5%     5.8%       -
operating
margin
Adjusted*          49.0     22.2    121%     90.6     57.9     56%
income for the
period
Adjusted* EPS      0.82     0.44     86%     1.51     1.15     31%
Adjusted*         136.0    186.6    -27%    236.3    307.5    -23%
operating cash
flow

*) Adjusted for non-comparable items in the quarter of MSEK -4.2 (-39.4) in
EBITDA and operating income and MSEK -3.3 (-70.5) in income for the period, as
well as MSEK -4.2 (-47.6) in EBITDA and operating income and MSEK -3.3 (-76.9)
in income for the period for the first half. See page 3.

CEO Statement
Trends in sales and operating income in the quarter were similar to those in the
first quarter with good sales growth and improved adjusted operating income and
margins in Sweden and Denmark compensating for a weak performance in Norway.
Overall, Group net sales grew by 2 percent at constant exchange rates and the
adjusted operating income increased slightly from the previous year.

Sales in Sweden benefitted from good market demand, strong performance of
recently launched innovative products and higher sales of chilled products over
frozen leading to an improved mix. The adjusted operating income and margin
improved substantially, with further improvements in operating efficiencies.

Sales and adjusted operating income in Denmark were positively impacted by
higher export volumes at firmer prices. The margin also benefited from further
cost savings in operations. The domestic Danish market was characterised by
continued pressure on pricing.

The Norwegian retail market for chicken products continued to be weak and
declined by 4 percent* compared to the second quarter last year. This was an
improvement from the first quarter when the market declined by 13 percent*.
Stock levels were high across the industry. Operating margin for the Norwegian
operation was negatively impacted by promotional activity and a higher
proportion of sales of frozen products. We continue to believe that the market
will recover but timing is uncertain. Deliveries to Coop Norway under the new
supply agreement, which also includes the stores acquired from ICA Norway,
started as of August. Deliveries will be phased in gradually as the newly
acquired stores are absorbed into Coop.

On 25 May we finalised the acquisition of Huttulan’s factory and business in
Finland, which began operations in May 2014. Huttulan has developed a premium
concept that is sold to retail and foodservice customers. Finland is an
attractive market for chicken products with many similarities to the Swedish
market. Integration of the business, now called Kronfågel Oy, is proceeding
according to plan and we have started to share best practice from within the
Group to improve performance in different areas. The factory is operating at
less than 20 percent of total capacity and will be loss-making this year. We are
making progress in organising new farming capacity to increase deliveries from
next year.

On 15 June, we signed an agreement to acquire Lagerbergs, the third largest
producer of chicken products in Sweden with sales of approximately MSEK 300. The
acquisition is subject to approval by the Swedish Competition Authority. The
acquisition would improve our capacity to supply the growing Swedish market and
would also create opportunities to improve efficiency in both our facility in
Valla, Sweden and the Lagerbergs factory.

Leif Bergvall Hansen
Managing Director and CEO

Further information
For further information, please contact:
Leif Bergvall Hansen, Chief Executive Officer.   Tel:  +45 22 10 05 44
Jonny Mason, Chief Financial Officer.                 Tel:  +45 22 77 86 18
Patrik Linzenbold, Head of Investor Relations. Tel:  +46 708 25 26 30

Financial calendar

  · Interim report for the third quarter 2015: 26 November 2015
  · Fourth quarter and year-end report 2015: 26 February 2016

This interim report comprises information which Scandi Standard is required to
disclose under the Securities Markets Act and/or the Financial Instruments
Trading Act. It was released for publication at 07:30 CET on 28 August 2015.