FirstFarms — Regulatory Filings 2020

Oct 12, 2020

FirstFarms

Company announcement no. 28/2020

12 October 2020

FirstFarms A/S completes sale of 618 hectares and strengthens liquidity

FirstFarms A/S has today signed final agreement (SPA) of 618 hectares. The agreement is entered based on conditional agreement of totally 1,675 hectares of land in West Romania (company announcement no. 15 of 9 June 2020).

The expected sales price constitutes DKK 85 million. The trade is expected to be carried out in tranches over the coming 12 months. The first completed tranches constitute DKK 31 million.

The profit of the sale is expected to affect EBIT with DKK 40 million over the coming 12 months. The result was latest adjusted in company announcement no. 16 of 11 June 2020 and FirstFarms still expects:

• An EBITDA result in the level of DKK 110-135 million
• An EBIT result of DKK 60-85 million

In 2019, an EBITDA of DKK 96 million and EBIT of DKK 48 million was realised.

With the sale, FirstFarms' cash resource is strengthened by DKK 85 million, as the land is not pledged.

Anders H. Nørgaard says: "With this sale we are realising a significant and satisfactory profit from our development of the land in West Romania". Anders H. Nørgaard continues, "FirstFarms' land is in our accounts booked at purchase prices and not market prices. Therefore, it is only through a sale of the land that the accumulated value increase of the land is realised. Thus, I am pleased that the significant hidden values in our land portfolio can be partially realised through this sale".

Anders H. Nørgaard clarifies: "We have at the end of 2019 a booked land value of DKK 346 million (9,200 hectares) with an estimated market price of DKK 615 million. We estimate regularly the land strategy in the individual departments, and whether the land shall be operated or sold".

The land is purchased in 2007-2008 and has been operated by FirstFarms the last 5 years.

The turnover in West Romania constitutes 5 percent of FirstFarms' total turnover. In the department, focus has been on development of the land portfolio, and the operating results have not been satisfactory. As a significant part of FirstFarms' business model, the

Company announcement no. 28/2020 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

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FirstFarms

land holding has been increased in value in the form of extensive trenching, land swap and improvement of the land structure.

FirstFarms closely follows the situation on the nervous pig market, after findings of swine fever in wild boars in Germany. The prices of piglets and slaughter pigs have decreased significantly in Europe after this, but FirstFarms expects that the market prices will stabilise again on a higher level within 2-3 months.

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.

About FirstFarms:
FirstFarms is a Danish stock exchange listed company, which purchases and operation agriculture in Eastern Europe. We develop the individual farms to modern businesses that deliver milk, meat and grains of the highest quality to the local food processing companies. FirstFarms contributes to, and approves, the development towards a more sustainable agriculture

Company announcement no. 28/2020 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