Company announcement no 11/2023 Interim Report Q2 2023

Interim Report Q2 2023

EBITDA fixed herd prices (FHP) for Q2 2023 increased to 10.236 mEUR (Q2 2022: 5.797 kEUR), corresponding to an EBITDA margin FHP of
28.1% (Q2 2022: 21.0%). The quarterly EBITDA in Q2 2023 increased by 4.439 kEUR (compared to Q2 2022). Mainly driven by improved sales prices, as they in Q2 2023 were 1.62 EUR/kg live weight, up from 1.39 EUR/kg Q2 2022 equal to EUR 5,1m and feed with EUR 0,9m , whereas the LT Subsidy in Q2 2022 effect comparison negative EUR 2,5m, as it was one-off.

Feed prices in Q2 2023 were 288 EUR/T (compared to 302 EUR/T Q2 2022). End June 2023 1.6 mEUR hedging gains are included in Group equity in other reserves, which will be released into EBITDA in Q3 2023.

The herd valuation in Q2 increased by 5,136 kEUR (compared to 31.03.2023). The increase is driven by increasing price in EU, as the EU supply of pork has been reduced during the last 2-3 years. Nevertheless, prices have in Q3 started to decrease from the historical high levels.

Net interest-bearing debt (NIBD) decreased to EUR 56.8m end Q2 2023, being EUR 31.0m lower than Q4 2020 when bond was issued (87.8 mEUR). Nevertheless, the following need to be considered EUR 1,6 from hedging transactions which will be included in EBITDA in Q3 2023. The EUR 75m bond duration ends Q4 2025, hence having very stable financing. NIBD split is 2,8 mEUR in Russia and 54,0 mEUR in Denmark/Lithuania. Outstanding bonds is 68,7 mEUR and own bonds end Q2 2023 is 12,3 mEUR.

Liquidity position, In order to utilize our current liquidity position and to ensure that Bondholders receive a partial redemption of Bonds in the short-term future instead of waiting for the cash sweep in accordance with the Bond Terms (i.e. potentially not before 31 May 2024), Idavang proposes to apply an amount of EUR 6,500,000 towards partial redemption of Bonds as an advance payment of future excess cash sweeps (with the same mechanics as the previous EUR 4,800,000 partial redemption made in January 2023).

The EUR 6,500,000 amount reflects our estimate of the Cash Sweep Amount for full year 2023 (after deducting the remaining amount of the EUR 4,800,000 advance payment made in connection with the amendment agreement no. 2) and corresponds to approx. 10 % of the outstanding principal of the Bonds.

If supported by major Bondholders after sounding with such, Idavang suggests to implement the proposal as a written resolution and will publish a summons to such written resolution separately. In that case, investors will be requested to vote in accordance with the procedure described therein. If the proposal is passed by the requisite number of bondholders, we will make the redemption and corresponding payments no later than 10 Business Days after final approval.

In December 2022 Company Announcement no 19/2022 was published. According to the announcement the Board of Directors and the Executive Boards are conducting a strategic review of the Group’s presence in Russia. As part of the strategic review the options for the future of the Group’s Russian activities are explored, including a potential sale of the business.

No conclusion of the process has been reached, at the date of signing submitting this interim report.

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