PRFoods

Quarterly Report • May 23, 2021

Company AS PRFoods

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 23 May 2021 23:32:53 +0300

Attachments:

• PRF_interim_9m2020_2021.pdf (http://oam.fi.ee/en/download?id=5559)

• PRF_vahearuanne_9k2020_2021.pdf (http://oam.fi.ee/en/download?id=5560)

Currency

Title

Consolidated Unaudited Interim Report of AS PRFoods for the 3nd quarter and 9 months of

MANAGEMENT COMMENTARY

The most difficult year in PRFoods history is coming to close. Second wave of corona crisis lasted longer than predicted and in reality we have operated under restrictions the entire financial year ending in June. HoReCa has been closed, export logistics has been hindered and Norwegian salmon farmers dumped salmon at record low prices, that led to decrease of entire market. All this is reflected in our financial performance.

Unfortunately we must admit that previous management made mistakes in investments and did not react to changed environment fast enough in Finland, thus amplifying the negatiive effect of corona. UK operations have been consistently profitable and from the beginning of calendar year we have resumed pre-coroan profitability and we see strong growth in sales and profitability for next financial year. Estonian operations are still small, but at the samet ime we doubled our retail sales on y-o-y. Fresh salmon trading, characterised by high sales volatility , but small margins, has been in very substantial decline due to corona and record low prices.

On positive side we managed to end Q3 with same result as last year despite -23% in sales, considering that January-March 2020 were normal months, but January-March 2021, Europe was still thick in corona crisis.

At the same time it has been one of the most positive years for us, as we got much closer in our strategy to become one of the biggest fish farmers in the region. New farming permits in Sweden and potential new permits in Estonia could contribute to 30-50 million euros additional sales in coming years.

We are prepared that there will be new corona-related restrictions in fall 2021.

We also deal actively with deleveraging the company, carrying out new issue of convertible bonds. Ca half of our loans are related to acquisition finance of John Ross Jr. , and their results have not been materially affected by corona, meaning the leverage is acceptable. Fish farming requires long-term financing and we are investigating alternatives. We have reduced the need of working capital in processing, decreasing our inventory levels. Most important is to restore profitability in the environment of decreased sales.

KEY RATIOS

INCOME STATEMENT

+--------------+-------+-------+-------+-------+-------+-------+-------+-------+
mln EUR +--------------+-------+-------+-------+-------+-------+-------+-------+-------+								1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019
Sales	14.2	17.0	12.7	15.1	18.5	25.4	19.3	21.5
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Gross profit	0.9	2.5	1.2	0.7	2.0	4.3	2.6	2.1
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBITDA from operations +--------------+-------+-------+-------+-------+-------+-------+-------+-------+	-0.5	0.6	-0.3	-0.4	0.0	2.1	0.7	0.3
EBITDA	-0.7	0.7	-0.5	-0.4	-0.9	1.4	1.5	0.3
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBIT	-1.4	0.0	-1.1	-1.0	-1.4	0.7	1.0	-0.3
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBT	-1.8	-0.1	-1.4	-1.2	-1.8	0.6	0.8	-0.4
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Net profit (- loss)	-1.8	-0.2	-1.4	-1.3	-1.7	0.5	0.6	-0.6
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Gross margin	6.6%	14.9%	9.4%	4.6%	10.8%	17.0%	13.4%	9.8%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Operational EBITDA margin	-3.5%	3.4%	-2.6%	-2.6%	0.1%	8.4%	3.8%	1.4%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBITDA margin	-5.3%	4.1%	-3.8%	-2.6%	-4.6%	5.3%	7.6%	1.4%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBIT margin	-9.9%	0.2%	-8.8%	-6.4%	-7.8%	2.9%	5.0%	-1.2%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ EBT margin	-12.5%		-0.6% -11.3%	-8.1%	-9.8%	2.2%	3.9%	-2.0%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Net margin	-12.5%		-1.2% -11.3%	-8.4%	-9.2%	2.0%	2.9%	-3.0%
+--------------+-------+-------+-------+-------+-------+-------+-------+-------+ Operating expense ratio +--------------+-------+-------+-------+-------+-------+-------+-------+-------+	15.6%	15.6%	18.2%	13.9%	14.3%	12.5%	13.4%	11.7%

Finantsinspektsioon http://www.fi.ee

BALANCE SHEET

mln EUR							$\vert 31.03.2021 \vert 31.12.2020 \vert 30.09.2020 \vert 30.06.2020 \vert 31.03.2020 \vert 31.12.2019 \vert 30.09.2019 \vert$
Net debt	21.4	21.9	21.5	20.7	17.0	17.8	19.9
Equity	17.6		$18.6$ 18.5	19.8	21.6	23.3	22.8
Working capital	$-5.0$	$-3.9$	$-4.4$	$-4.0$	$-2.5$	$-3.5$	$-3.0$
Assets	54.5	57.5	57.4	57.1	56.9	60.5	62.4
Liquidity ratio	0.8x	0.8x	0.8x	0.8x	0.9x	0.9x	0.9x
Equity ratio	$32.4$ 8	$32.4$ $\,$	32.3%	34.7%	$37.9$ 8	$38.5$ 8	36.5%
Gearing ratio	$54.9$ $ $	$54.0$ $ $	53.7%		$51.1$ \rightarrow 44.0\rightarrow 44.0\rightarrow 1	43.3%	$46.6$ 8
Debt to total assets	0.7x	0.7x	0.7x	0.7x	0.6x	0.6x	0.6x
Net debt to EBITDA op	$-55.3x$	160.0x	12.8x	7.5x	5.3x	5.3x	5.4x
ROE	$-23.8$	$-21.9$ $ $	$-7.0%$	$-9.1$ $8$	$-5.7%$	$-3.2$ $ $	$-4.5%$
ROA	$-8.4%$	$-7.8$ $ $	$-2.4%$	$-3.2$ $ $	$-2.1$ %	$-1.2$ $ $	$-1.6%$

Consolidated Statement of Financial Position

Thousand euros		$31.03.2021$ $31.03.2020$ $30.06.2020$
ASSETS
Cash and cash equivalents	1,485	3,023	2,276
Receivables and prepayments	3,536	4,095	3,578

Finantsinspektsioon http://www.fi.ee

Inventories	7,645	9,656	7,884
Biological assets	2,366	2,590	4,249
Total current assets	15,032	19,364	17,987
Deferred income tax	21	18	54
Long-term financial investments	232	215	232
Tangible fixed assets	15,541	14,135	16,179
Intangible assets	23,626	23,208	22,672
Total non-current assets	39,420	37,576	39,137
TOTAL ASSETS	54,452	56,940	57,124
EQUITY AND LIABILITIES
Loans and borrowings	8,984	9,518	10,611
Payables	10,833	12,142	11,132
Government grants	208	187	211
Total current liabilities	20,025	21,847	21,954
Loans and borrowings	13,944	10,489	12,368
Payables	298	190	190
Deferred tax liabilities	1,787	1,854	$1,920$
Government grants	752	962	873
Total non-current liabilities	$16,781$		$13,495$ $15,351$
TOTAL LIABILITIES	36,806		35,342 37,305
Share capital	7,737	7,737	7,737

Finantsinspektsioon
http://www.fi.ee

Share premium	$14, 198$	$14,007$	14,007
Treasury shares	$-390$	$-390$	$-390$
Statutory capital reserve	51	51	51
Currency translation reserve	683	147	-366
Retained profit (-loss)	$-4,985$	$-550$	$-1,654$
Equity attributable to parent	17,294	21,002	19,385
Non-controlling interest	352	596	434
TOTAL EQUITY	17,646	21,598	19,819
TOTAL EQUITY AND LIABILITIES	54,452	56,940	57,124

Consolidated Statement of Profit or Loss And Other Comprehensive Income

Thousand euros		3Q 2020/2021 3Q 2019/2020	9 months 2020/2021	9 months 2019/2020
Sales	14,186	18,488	43,952	63, 191
Cost of goods sold		$-13,247$ $-16,497$	$-39,280$	$-54, 293$
Gross profit	939	1,991	4,672	8,898
Operating expenses	$-2,219$	$-2,635$	$-7, 204$	$-8,402$
Selling and distribution expenses	$-1,523$	$-1,735$	$-4,890$	$-5,673$
Administrative expenses	$-696$	$-900$	$-2,314$	$-2,729$
Other income / expense	26	$-35$	163	299
Fair value adjustment on

Finantsinspektsioon
http://www.fi.ee

biological assets	$-154$	$-754$	$-130$	$-530$
Operating profit (loss)	$-1,408$		$-1,433$ $-2,499$	265
Financial income/- expenses	$-370$	$-384$	$-808$	$-777$
Profit (loss) before tax			$-1,778$ $-1,817$ $-3,307$	$-512$
Income tax	$-1$	120	$-106$	$-119$
Net profit (loss) for the period			$-1,779$ $-1,697$ $-3,413$	$-631$
Net profit (loss) attributable to:
Owners of the company		$-1,739$ $-1,658$	$-3,331$	$-616$
Non-controlling interests	$-40$	$-39$	$-82$	$-15$
Total net profit $(\texttt{loss})$	$-1,779$	$-1,697$	$-3,413$	$-631$
Other omprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences	781	$-20$	1,049	361
Total comprehensive income (expense)	$-998$	$-1,717$	$-2,364$	$-270$
Total comprehensive income (expense)

Finantsinspektsioon
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attributable to:
Owners of the Company	$-958$	$-1,678$	$-2,282$	$-255$
Non-controlling interests	$-40$	$-39$	$-82$	$-15$
Total comprehensive income (expense) for the period	$-998$	$-1,717$	$-2, 364$	$-270$
Profit (loss) per share (EUR)	$-0,04$	$-0,04$	$-0,09$	$-0,02$
Diluted profit (loss) per share $($ EUR $)$	$-0,04$	$-0,04$	$-0,09$	$-0,02$

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone: +372 452 1470

investor@prfoods.ee

www.prfoods.ee

Finantsinspektsioon http://www.fi.ee