FirstFarms — M&A Activity 2016

Nov 2, 2016

FirstFarms

Company announcement no. 12/2016

2 November 2016

FirstFarms A/S enters pig production

FirstFarms A/S has today entered a conditional agreement about purchase of Dan-Farm Holding A/S. Dan-Farm Holding A/S owns 80 percent of the Hungarian company Dan-Farm Hungary Kft. The remaining 20 percent are owned by the IØ fund.

Dan-Farm Hungary Kft. has today 2,200 sows, and a yearly sale of approx. 70,000 piglets and approx. 5,000 slaughter pigs.

A due diligence process will be initiated, before the agreement becomes final.

The production in Dan-Farm Hungary Kft. is within driving distances, which can create significant synergies in proportion to FirstFarms A/S' production in Slovakia and in West Romania in regards to production and sale.

With this agreement, FirstFarms A/S gets pig production into the portfolio, and it is assessed to secure a larger risk spread and better earnings. At the same time, there is potential for expansion of the production in the future, both with further slaughter pigs and sows.

The purchase price is agreed to DKK 11 million for 100 percent of the shares in Dan-Farm Holding A/S. The purchase price is paid with issuance of new shares in FirstFarms A/S. The share price is fixed at 46.15 corresponding to fair value.

In connection with the purchase, FirstFarms A/S holds a direct placement towards the shareholders in Dan-Farm Holding A/S, who subscribe convertible bonds for DKK 13.2 million. The proceeds will be used to repay loans from the shareholders in Dan-Farm Holding A/S. In connection with issuance of new convertible bonds, the conversion price is fixed at 46.15 in accordance to the authorisation and the terms for the convertible bonds, which is attached to this company announcement. The bonds are not included in the prospectus rules and are not traded on a regulated market.

The purchase of Dan-Farm Holding A/S is expected to influence FirstFarms A/S' result positively by DKK 5 million before tax from 2017 and no significant influence in 2016.

FirstFarms A/S' negotiations with AP Pension regarding land and buildings in Romania are still in progress in a positive dialogue, and it is expected that the final agreement can be ready before the end of the year.

Best regards,

FirstFarms A/S

For further information:

Please visit our website www.firstfarms.com or

contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.

Company announcement no. 12/2016 for FirstFarms A/S

FirstFarms A/S

Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787

www.firstfarms.dk – www.firstfarms.com – info@firstfarms.com

CVR no.: 28312504 – Registered office: Billund