Kmarel

MAREL

Capital Markets Day

2 May 2019

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DISCLAIMER

The purpose of this presentation (the "Presentation") is to provide an overview of Marel hf. (the "Company"). This Presentation has been prepared and issued by and is the sole responsibility of the Company and is being furnished to each recipient solely for its own information. For the purposes of this notice, "Presentation" means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed during the Presentation meeting.

No representation or warranty, express or implied, is given by or on behalf of the Company or its directors, officers, employees, agents, affiliates as to, and no reliance should be placed on, the fairness, accuracy, reasonableness or completeness of the information or opinions contained in this Presentation or otherwise made available and no responsibility or liability (including in respect of direct, indirect or consequential loss or damage) is assumed by any such persons for such information or opinions or for any errors or omissions.

Except where otherwise indicated in the Presentation, the information provided therein is based on matters as they exist at the date of preparation of the Presentation and not as of any future date and will be subject to updating, revision, verification and amendment without notice and such information may change materially. The Company is under no obligation to update or keep current the information contained in this Presentation to which it relates or to provide the recipient of with access to any additional information that may arise in connection with it and any opinions expressed in this Presentation are subject to change without notice. Nothing contained in this Presentation is or should be relied on as a promise or representation as to the future. This document has not been approved by any regulatory or supervisory authority.

This Presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. The Company may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from these sources. As a result, the Company is not able to verify such numerical data, market data and such other information, and assumes no responsibility for the correctness of any market share or industry data or such other information included in this Presentation or provided at the Presentation. Certain of the market, economic and industry data contained in this presentation comes from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the markets in which the Company operates. While the Company reasonably believes that such information is reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on the market, economic and industry data contained in this Presentation.

Certain statements, beliefs and opinions in this Presentation are, or may be deemed to be, "forward looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology or by their context. These forward-looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, results of operations, financial condition, liquidity, prospects, growth and strategies. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. A multitude of factors including, but not limited to, changes in demand, competition and technology or the regulatory environment, can cause actual events, performance or results to differ significantly from any anticipated development. Forward-looking statements are not guarantees of future performance and the actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements set out in this Presentation. Past performance of the Company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this Presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this Presentation. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. In addition, even if the results of operations, financial condition and liquidity of the Company, and the development of the industry in which the Company operates, are consistent with the forward-looking statements set out in this Presentation, those results or developments may not be indicative of results or developments in subsequent periods.

This Presentation does not constitute, and should not be construed as, part of any offer or invitation for the sale or purchase of securities and it is not intended to provide the basis of any investment decision in any jurisdiction, nor does it purport to give legal, tax or financial advice. Nothing herein shall be taken as constituting the giving of investment advice and this Presentation is not intended to provide, and must not be taken as, the basis of any decision and should not be considered as a recommendation to acquire any securities of the Company. The recipient must make its own independent assessment and such investigations as it deems necessary.

Any sale of the Company's ordinary shares has not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. There will be no public offer of the ordinary shares in the United States (for these purposes, the "United States" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia).

Capital Markets Day 2019

iMareI

Agenda

13:00 – 14:30: Marel’s journey from start-up to global leader: Market outlook, financial highlights, business model and strategy

14:40 – 16:10: Business presentations

16:15 – 17:00: Breakout-out sessions

13:00 – 14:30

Marel's journey: from start-up to global leader

Market outlook, financial highlights, business model and strategy

Capital Markets Day 2019

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CHIEF EXECUTIVE OFFICER

ÁRNI ODDUR

Árni Oddur Thórdarson took up his current position as Marel's CEO in November 2013 after having been serving as Chairman of Marel's Board of Directors from 2005. He co-founded Eyrir Invest in the year of 2000 and was the company's CEO until 2013. Thórdarson has extensive international global business experience and has served as non-executive director of various companies, including Fokker Technologies and Stork Technical Services.

EDUCATION

MBA, IMD, Switzerland Cand. Oecon., Business Administration, University of Iceland.

14 years with Marel / 14 years in Industry

ACTIVE CONSUMERS ARE LOOKING FOR A BALANCED DIET

EUR +1,200bn¹ annual consumer value of poultry meat and fish industries +3bn people² belong to the rising middle class world-wide 3-4%² global annual growth until 2030 of urbanised middle class

Source: Company Information
Note: 1 Management Services - Regency 10000 - The Hopwood Mill - Essope - No One Boulder Middle Class 2017 - Middle class 2017
6

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HIGHLY ATTRACTIVE, SECULAR GROWTH TRENDS

Marel focuses on the high growth animal protein processing market valued at an estimated EUR +1,200bn, thereof EUR 12bn market size for equipment, systems, software and services for poultry, meat and fish

Market for global meat, poultry and fish market forecasted to grow an average 3-4% annually until 2026²
The global food processing equipment, systems, software and services market size is forecasted to be at EUR +50bn¹, with animal protein representing an estimated EUR 12bn¹
Main drivers of expected market growth are underlying production growth, increased need for automation, throughput and yield, as well as increased focus of consumers and regulators on sustainability, food safety, nutrition, health and wellness
Potential future opportunities from adjacent end-markets

Source: Company information. ¹ Management estimates for 2019. ² Management estimates.

Marel is a leading global provider of advanced processing equipment, systems, software and services to the poultry, meat and fish industries.

UNITY

DATA-DRIVEN FROM DAY ONE

Marel started as an idea at the University of Iceland in 1977 and was incorporated in 1983

Marel's marine scales, developed by passionate entrepreneurs at the University of Iceland in partnership with the Icelandic fish industry, introduced data collection to the Icelandic fishing grounds

Using decades of precise data, Marel has continuously developed solutions that produce quality food sustainably and affordably

EXCELLENCE

INNOVATION

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A STRONG TRACK RECORD OF GROWTH

Marel had over 6,000 employees working in +30 countries and EUR 1.2 billion in revenues in 2018, a stark contrast to its 45 employees and revenues of EUR 6 million at the time of listing in 1992

Good support from shareholders since listing on Nasdaq Iceland in 1992
Growth strategy announced and agreed at the 2006 AGM
Acquisitions of Scanvaegt and Stork Food Systems financed with equity contribution of EUR 268 million
MPS, Sulmaq and MAJA acquisitions financed with support from banking partners, strong operational results and cash flow

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UNIQUE PURE PLAY PROVIDER

Marel is a pure play provider of full-line offering, software and services to in poultry, meat and fish food processing industries

FULL-LINE SOLUTIONS PROVIDER...

One-stop-shop for the customer
Seamless integration More efficiency
Strong competitive advantage

...ACROSS POULTRY, MEAT AND FISH...

More resilient business model
Technology transfer across industries
Better utilization of resources

...WITH STANDARD AND MODULAR OFFERING

Less engineering work
Easier to manufacture
Better serviceability

... AND MARKET LEADING INNOVA SOFTWARE

Traceability
Customer operational excellence
Optimizing customer orders

Source: Company information.

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CLEARLY POSITIONED IN THE VALUE CHAIN

Today Marel is the only pure play supplier of advanced processing equipment, systems, software and services to the poultry, meat and fish industries across the three processing stages

ADVANCED, HIGH-END SOLUTIONS

SALES AND SERVICE NETWORK

13 MANUFACTURING SITES

Source: Company information. Note: 1 Counted as one manufacturing site. 2 Mother site location. 3 Co-location.

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GOOD QUALITY OF EARNINGS

Strong track record of a well diversified revenue structure across industries, geographies and business segments

REVENUES BY INDUSTRY %
53%
33%
13%
1%
2018

R
Poultry
Fish
Meat
Other

REVENUES BY GEOGRAPHY %
29%
46%
25%
2018

R
North-America
Europe
Rest of the world

REVENUES BY BUSINESS MIX %
2018

R
Greenfield and projects
Modernization and standard equipment
Maintenance
Service and repairs

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BALANCED BUSINESS MIX

Marel is a leading global provider of advanced food processing equipment, systems, software and services with balanced exposure to all three animal protein industries and processing stages

Most advanced industry within Marel
Full-line offering on a standardised and modular basis
With the most complete product range and one of the largest installed bases world-wide, competitive position remains strong

2018 revenues	2018 EBIT margin
EUR 638m	18.4%

Full-line product offering following acquisitions of MPS, Sulmaq and MAJA
Focus going forward on increased standardisation and modularisation, as well as upselling and cross-selling
Management is targeting medium and long-term EBIT margin expansion for Marel Meat

2018 revenues	2018 EBIT margin adjusted for PPA¹
EUR 387m	11.3%

Focus on full-line offering for wild whitefish, farmed salmon and farmed whitefish
Aim to fill certain primary processing applications with innovation and / or M&A
Management is targeting medium and long-term EBIT margin expansion for Marel Fish

2018 revenues	2018 EBIT margin
EUR 159m	7.9%

Note: ¹ Operating income adjusted for PPA related costs, including depreciation and amortisation. PPA refers to amortisation of acquisition-related intangible assets.

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LARGE AND DIVERSIFIED GLOBAL CUSTOMER BASE

Marel's strong brand and unique product offering cater to its loyal blue-chip customer base

Large, diversified global customer base comprised of the world's leading poultry, meat and fish processors
Customer base ranging from large international leaders to local processors
Top 10 customers in 2018 account for less than 20% of total revenues with the single largest customer accounting for less than 5%
Active customer accounts in over 140 countries worldwide
Strong customer retention – list of top customers is fairly consistent between years

Source: Company information.

In partnership with our customers we are transforming the way food is processed

Marel's vision is of a world where quality food is produced sustainably and affordably

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GROWTH STRATEGY UNDERPINNED BY CLEAR TARGETS

Target of 12% average annual revenue growth in 2017-2026, capitalizing on R&D investments and strengthening the value chain organically and via strategic investments

INNOVATION	ORGANIC	STRATEGIC
R&D
commitment of
~6%
of revenues	Annual market growth
expected at
4-6%

...driven by innovation and
market penetration, Marel
aims to grow faster than
market | Annual revenue growth
expected at
5-7%

...acquisition growth
to accelerate full line offering
and market penetration |

Growth is not expected to be linear but based on opportunities and economic fluctuations

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STRATEGIC INVESTMENT IN INNOVATION

Strong innovation investments leveraged across industries and product groups to maintain technological industry leadership, secure competitive advantage and support organic growth

INNOVATION INVESTMENT ~6% OF REVENUES

R&D commitment of ~6% of revenues

INNOVATION ACROSS INDUSTRIES

Focused on transferring technology between industries

The SensorX was originally developed for the fish industry and has now been successfully introduced to the poultry and meat industries

The i-Cut was developed for the fish industry, with majority of the sales now to the poultry and meat industries – same technology adapted to different capacity, protein size and different species

PARTNERSHIP WITH CUSTOMERS

Marel has introduced over 50 new products to the market in the past 3 years

Source: Company information.

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UNIQUE INNOVA SOFTWARE PLATFORM

Marel has developed Innova, a unique proprietary software platform enabling device control, as well as efficient factory and process management with over 2,000 installations world-wide

EMBEDDED SOFTWARE

Device functionality creating superior value for food processors
Examples include image recognition and portioning optimisation

CONNECTED SOLUTIONS

Integrated with hardware to enable controlling, monitoring and operating multiple devices as a single system
Examples include quality control, yield management and automated operation

SIGN: “We were blind before”

"We are able to trace production all the way to finished products. Now we can see things as they happen and manage them"

INNOVATIVE CUSTOMERS

CONNECTED BUSINESS

Factory and production management with automated real-time decisions to maximise value, safety and order fulfilment
Examples include ERP¹ integration, traceability, planning and multi-site overall equipment effectiveness ("OEE")

Source: Company information.

Note: ¹ Enterprise resource planning.

KEY TAKEAWAYS

Marel is a leading global provider of advanced food processing equipment, systems, software and services to the poultry, meat and fish industries, and is poised for continued success

ATTRACTIVE END-MARKETS	UNIQUE BUSINESS MODEL	GLOBAL SCALE AND SCOPE	TECHNOLOGY AND INNOVATION LEADERSHIP	PROVEN TRACK RECORD	POSITIONED FOR CONTINUED SUCCESS
• Sizeable market with positive outlook supported by long-term, secular growth trends
• Fragmented market with strong opportunities for consolidation and scale expansion	• A truly global pure play provider aiming to cover the full processing value chain for poultry, meat and fish solutions
• Strong brand and unique product offering catering to loyal blue-chip customer base	• Large and growing installed base driving highly attractive service and spare parts
• Global sales and service network ensures local presence and support	• Technology leadership is an integral part of Marel’s strategy
• Marel’s overarching Innova software platform ensures optimal yield and throughput	• Proven historical performance in revenue growth, profitability and EPS
• Strong cash flow generation enabling investments in the business creating shareholder value	• Clear and defined organic and acquired growth strategy to achieve ambitious performance targets
• Experienced management team with proven track record

Source: Company information.

Note : 1 Management estimates. 2 2015 EBIT adjusted for refocusing cost. 3 Operating income adjusted for PPA related costs, including depreciation and amortisation. PPA refers to amortisation of acquisition-related intangible assets.

Marel as a global leader needs a global stage.

Nasdaq

Listed since 1992

EURO

EURONEXT

A pre-summer listing

expected in 2019

MARKET OVERVIEW AND GROWTH STRATEGY

Árni Sigurdsson
Executive Vice President of Strategy and Development

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EXECUTIVE VICE-PRESIDENT OF STRATEGY AND DEVELOPMENT

ÁRNI SIGURDSSON

Árni Sigurdsson has a broad background in the finance and investment management industry. Before joining Marel in 2014, he was an associate at AGC Partners investment bank. Prior to that, Sigurdsson worked at the commercial bank Landsbanki Íslands, where he was instrumental in advising Marel on the acquisition of Stork Food Systems.

EDUCATION

MBA, Harvard Business School

BS, Industrial Engineering, University of Iceland

5 years with Marel / 8 years in Industry

A. FOOD PRODUCTION MARKET
B. FOOD PROCESSING SOLUTIONS MARKET
C. GROWTH STRATEGY

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SECULAR TRENDS AND IMPLICATIONS

Marel is well positioned to benefit from secular trends driving consumption and to address supply challenges for customers

SECULAR TRENDS AND DEMAND IMPLICATIONS

GROWING POPULATION

by 2050, estimated global population of ~10bn¹

CAGR¹: 0.7%
More demand for food, especially from Asia and Africa

URBANISATION

by 2050, estimated up to 2.4bn additional people will move into urban areas¹,²

CAGR¹: 1.3%
Expected to lead to increased demand for commercially processed food

RISING MIDDLE CLASS

by 2030, estimated up to ~2.0bn additional people will be part of the middle class³

CAGR³: 3.9%
Increased protein consumption typically correlates to higher income

Source: Company information.
Note: ¹ Food and Agriculture Organization of the United Nations (FAO), The Future of Food and Agriculture 2017. ² Urban / rural estimates, and hence projected urbanisation trends, are not based on a uniform definition of urban versus rural populations. Instead, individual countries report their data based on national definitions and no effort has been made to make these estimates comparable across countries or regions. ³ Brookings, The Unprecedented Expansion of the Global Middle Class 2017; Middle class defined as households with per capita incomes between $11 and $110 per person per day in 2011 purchasing power parity terms.

SUPPLY CHALLENGES

Sustainability & animal wellbeing

Reduce waste

Product quality

Food safety and traceability

Scarcity of skilled labour

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MEAT, POULTRY AND FISH GEOGRAPHICAL TRENDS

All major protein types are forecasted to continue to grow with higher growth rates in developing countries

Source: Company information.
Note: ¹Sample species for meat include pork, beef, veal, and sheep; sample species for poultry include broiler, turkey, and duck; sample species for fish include salmon, wild whitefish, and farmed whitefish. ²OECD FAO Agricultural Database, USDA. Meat includes beef and veal, pig-meat and sheep-meat. ³FAO, USDA, Groundfish Forum. ⁴Total salmon.

A. FOOD PRODUCTION MARKET
B. FOOD PROCESSING SOLUTIONS MARKET
C. GROWTH STRATEGY

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FOOD PROCESSING SOLUTIONS MARKET STRUCTURE

The animal protein processing equipment, systems, software and services market size is estimated be at EUR 12bn¹

Source: Company information.

Note: ¹ Management estimates for 2019. ² At consumer value. Management estimates. ³ Hotel, restaurant and catering.

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POULTRY, MEAT AND FISH PROCESSING SOLUTIONS IN PERSPECTIVE

Marel focuses on primary, secondary and further processing equipment, systems, software and services in the meat, poultry and fish industries

Source: Company information.

Note: 1 Management estimate.

TRENDS IN THE FOOD PROCESSING SOLUTIONS MARKET

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Automation, food safety, sustainability and digitalization are key trends in the industry

PRODUCTIVITY AND PROCESS OPTIMISATION

Automation in food processing expected to rise, particularly in developing markets
Plant efficiency, uptime, automation, yield and throughput

AUTOMATION IS EXPECTED TO RISE

A SEGMENTED APPROACH TO CONSUMER AND REGULATORY NEEDS

PRODUCT QUALITY AND SUSTAINABILITY

Food safety and traceability increasingly important
Sustainability focus with rising social awareness and emphasis on animal wellbeing, lower water usage and lower utility cost

SOFTWARE BRINGS IT ALL TOGETHER

Source: Company information.

MARKET GROWTH

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Market is estimated to be EUR 12bn and forecasted to grow on average by 4-6% annually until 2026

Source: Company information.

Note: 1 Management estimates.

MARKET SEGMENTATION

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Marel focuses on the advanced and high-end segments of the market

Advanced and high-end segments comprise the most value due to higher technology resulting in incremental value for the customer
Low-end segment is dominated by smaller local solutions providers
Developed markets are dominated by larger players with fast line speed and high degree of automation
Emerging markets are more fragmented with lower line speeds and more manual processing

MARKET OVERVIEW BY LINE SPEED AND DEGREE OF AUTOMATION

Source: Company information.

INDUSTRY STRUCTURE

Marel has a differentiated strategy of becoming a full-line supplier with standard building blocks across all industries

Primary processing is industry specific as the process is tailored to the product
In secondary and further processing, most industry players focus on applications or technologies that apply across multiple industries
Marel is focused on becoming a full-line provider with standard building blocks, creating a seamless integrated flow across the value chain with overarching software

Source: The Freedonia Group, management estimates.

A. FOOD PRODUCTION MARKET
B. FOOD PROCESSING SOLUTIONS MARKET
C. GROWTH STRATEGY

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GROWTH STRATEGY AND APPROACH

Marel has a clear and well-defined strategy and approach to drive growth...

Source: Company information.

GROWTH TARGET

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...with a targeted 12% average annual revenue growth rate

AVERAGE ANNUAL GROWTH TARGET FROM 2017 - 2026¹

Source: Company information.

Note: ¹ Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

Organic growth Acquired growth

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ORGANIC GROWTH

Marel aims to grow faster than the market, mainly driven by innovation and market penetration

DIFFERENTIATED APPROACH AND VALUE PROPOSITION

Aims to be full-line solutions provider across poultry, meat and fish
Standard and modular building blocks
Overarching Innova software

CONTINUOUS INVESTMENTS

Strong commitment to innovation with ~6% of revenues invested annually
Global sales and service network with presence in +30 countries covering active customers in more than 140 countries
Continuous infrastructure investments

RELIABLE MAINTENANCE PARTNER

Customer support throughout the product lifecycle
Full-line offering simplifies services and allows optimal performance and uptime
Large and growing installed base drives recurring revenue opportunities

UNDERLYING MARKET GROWTH

Underlying food processing solutions market is estimated to grow at 4-6%, e.g. due to rising middle class and increased automation

Source: Company information. Note: 1 Management estimate, until 2026; 2 Brookings; The Unprecedented Expansion of the Global Middle Class 2017.

Organic growth Acquired growth

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CONTINUOUS INVESTMENTS

Marel continuously invests in innovation, its global sales and service network as well as infrastructure

Source: Company information. Note: 1 Includes R&D, intangibles and other capital expenditures.

Organic growth

Acquired growth

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ACQUIRED GROWTH

Marel is targeting 5-7% average annual revenue growth through strategic acquisitions

Source: Company information.

Note: 1 Per previous public disclosures.

Organic growth
Acquired growth
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M&A STRATEGY AND APPROACH

Marel is at the forefront of the ongoing market consolidation

COMPLEMENTARY SOLUTIONS

NEW MARKET OPPORTUNITIES

SHARED VISION AND STRATEGY

Strengthen product portfolio and full-line offering

Strong and complementary products to Marel's full-line portfolio with standard and modular building blocks
Larger briefcase and better value proposition to offer customers
Leverage installed base of both companies to cross-sell and drive increased service revenue

RECENT EXAMPLES

Reinforce market presence and build customer relationships

Build presence closer to current and future customers
Utilize existing relationships to penetrate new products
Strengthen global sales and service network and capture synergies

sulmaq

Aligned vision and strategy with cultural fit

Shared vision and strategy between the two companies
The right cultural fit between the two companies
Good businesses that fit with Marel

Source: Company information.

KEY TAKEAWAYS

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ATTRACTIVE END-MARKETS BENEFITTING FROM SECULAR TRENDS	Meat, poultry and fish production growth is forecasted to continue, mainly driven by increasing demand in developing countries
FAVORABLE GROWTH DRIVERS IN MEAT, POULTRY AND FISH PROCESSING SOLUTIONS	The meat, poultry and fish processing solutions market is forecasted to grow on average by 4-6% annually until 2026, driven by underlying demand growth, increasing automation, food safety and digitalization trends
WELL-DEFINED GROWTH STRATEGY WITH ORGANIC GROWTH OUTPACING THE MARKET	Strategy to deliver 12% average annual revenue growth through 2026, with +4-6% organic growth driven by differentiated strategy, innovation and market penetration
CLEAR M&A STRATEGY AND APPROACH	Strengthen product portfolio, accelerate full-line offering and seek new market opportunities to deliver 5-7% average annual acquired revenue growth through 2026

FINANCIAL PERFORMANCE

Linda Jónsdóttir
Chief Financial Officer

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CHIEF FINANCIAL OFFICER

LINDA JÓNSDÓTTIR

Linda Jónsdóttir has been Marel's CFO since 2014 and before that was Marel's Corporate Director of Treasury and Investor Relations. Prior to joining Marel, Jónsdóttir worked in Treasury and financing for Eimskip, Burdaras and Straumur Investment Bank. She was a director of the Icelandic Enterprise Investment Fund from 2010 to 2015.

EDUCATION

MS, Finance, Reykjavik University
Cand. Oecon., Business Administration, University of Iceland

9 years with Marel / 9 years in Industry

OVERVIEW OF KEY FINANCIAL HIGHLIGHTS

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Strong organic growth, resilient profitability and cash flow generation

Revenues were a record EUR 1.2bn in 2018, up 15.4% from the previous year (of which 12.5% was organic growth)
In 1Q19, orders received were EUR 323m, up 9.2% QoQ and 1.8% lower than the record orders received in 1Q18
Strong year-end 2018 order book represents around 40% of trailing twelve month revenues (38% in 1Q19)
Robust operational cash flow supports leverage at 2.2x net debt / adjusted EBITDA, within targeted 2-3x net debt / adjusted EBITDA
Paid out around EUR 130m in dividends, share buybacks and for MAJA acquisition in 2018 and EUR 70m in 1Q19

ORDERS RECEIVED²
EUR m

ADJ. EBIT MARGIN¹
%

REVENUES
EUR m

FREE CASH FLOW⁴
EUR m

ORDER BOOK³
EUR m

LEVERAGE
Net debt / Adj. EBITDA¹

Source: Company information. Note: ¹ EBIT adjusted for PPA related costs, including depreciation and amortization from 2016 - 2019 and refocusing costs in 2014 and 2015 relating to "Simpler, Smarter, Faster" programme. PPA refers to amortization of acquisition-related intangible assets. ² Orders received represents the total nominal amount, during the relevant period, of customer orders for equipment, software, service and spare parts registered by Marel during the relevant period.³ The order book reflects Marel's estimates, as of the relevant order book date, of potential future revenues to be derived from contracts for equipment, software, service and spare parts which have been financially secured through down payments and/or letters of credit in line with the relevant contract terms. These estimates reflect the estimated total nominal values of amounts due under the relevant contracts less any amounts recognized as revenues in Marel's financial statements as of the relevant order book date. ⁴ Free cash flow defined as cash generated from operating activities less tax and net investments. ⁵ Pro-forma adjusting for the MPS acquisition orders received and revenues were EUR 1,013m and EUR 983m in 2016, respectively.

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TOP-LINE GROWTH SUPPORTED BY HIGH ORDER INTAKE…

Healthy mix of revenues deriving from greenfield projects, modernization, standard equipment and maintenance of existing customers' installed base world-wide

Order book primarily constitutes greenfield projects and large projects with long lead times
Large projects and greenfield projects are generally booked to revenues within 12 – 18 months, whereas standard equipment and modernization projects have shorter revenue realization periods of 6 weeks – 6 months
In 1Q19, order book was 38% trailing twelve months revenues and book-to-bill ratio was 0.99x
Overall a significant proportion of Marel's revenues derives from the service and spare parts business, in total around 35% of full year 2018 revenues (same in 1Q19)
Recurring revenues derive from service level agreements, spare parts and ad-hoc repairs

Source: Company information.

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… AND ROBUST ORDER BOOK

Order book remains healthy with a stable order intake and delivery frequency

Order book consists of orders that have been signed and financially secured with down payments/letters of credit
Meat projects have in general longer lead times than poultry, while fish projects have shorter cycles
SLA contracts including spare parts are included in the order book
Low customer concentration with no customer accounting for >5% of the total revenues
Well diversified order book by size with widely spread delivery times

Source: Company information, Note: ¹ The order book reflects Marel's estimates, as of the relevant order book date, of potential future revenues to be derived from contracts for equipment, software, service and spare parts which have been financially secured through down payments and/or letters of credit in line with the relevant contract terms. These estimates reflect the estimated total nominal values of amounts due under the relevant contracts less any amounts recognized as revenues in Marel's financial statements as of the relevant order book date. ² Orders received represents the total nominal amount, during the relevant period, of customer orders for equipment, software, service and spare parts registered by Marel. ³ One-time effect related to the adoption of IFRS 15. ⁴ Including acquired order book of Sulmaq of EUR 17m. ⁵ Including acquired order book of MAJA of EUR 2m.

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WELL DIVERSIFIED REVENUE STREAMS

Strong track record of a well diversified revenue structure across both industries and geographies

REVENUE SPLIT BY SEGMENT

The poultry and fish segments have organically grown faster than the meat segment during the last 3 years
Meat segment achieved full-line offering with the acquisition of MPS in 2016 and bolt-on acquisitions of Sulmaq and MAJA in 2017 and 2018, respectively
Long-term aim to have a more evenly distributed revenue mix, particularly as the fish segment becomes a full-line provider

REVENUE SPLIT BY GEOGRAPHY

Rest of world share of revenues is steadily accelerating as requirement for automation and food safety is increasing in developing markets
Underlying market strength in North America has driven consistent revenue contribution from the region over the last 3 years

Source: Company information.

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STEADY OPERATIONAL PERFORMANCE

Refocusing efforts in 2014 and 2015 provided the foundation for Marel's highly attractive margin levels over the past three years

Successful refocusing programme in 2014-2015 subsequently contributed to significant margin uplift
“Simpler, Smarter, Faster” programme refocused operations with optimizing product portfolio and reduction of manufacturing sites
Transformational acquisition of MPS (Marel Meat) further contributed to margin expansion in early 2016
As a result, Marel was able to achieve attractive margins of around 15% over the past several years
Fluctuation in adjusted EBIT margins quarter on quarter can be expected as timing of big projects and product mix can have an effect

Source: Company information.

Note: 1 Adjusted for PPA related costs, including depreciation and amortization from 2016 – 2019 and refocusing costs in 2014 and 2015 relating to “Simpler, Smarter, Faster” programme. PPA refers to amortization of acquisition-related, intangible assets. 2 Adjusted EBIT in Q4 2015 is not adjusted for 3.3m cost related to the MPS acquisition, which was described in the Company's Q4 2015 report and recorded in general and administrative expenses.

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SIMPLER, SMARTER, FASTER REFOCUSING PROGRAMME

Refocusing programme launched in 2014 resulted in 25% revenue growth in two years period, 2014-2015 while delivering substantial margin improvements

Source: Company information. ¹ Adjusted for PPA related costs, including depreciation and amortization from 2016 - 2019 and refocusing costs in 2014 and 2015 relating to "Simpler, Smarter, Faster" programme. PPA refers to amortization of acquisition-related intangible assets.

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BALANCED BUSINESS MIX

Global reach and focus on full-line offering across the poultry, meat and fish industries counterbalance fluctuations in customer demand

POULTRY

EUR 638m revenue FY18

18.4% EBIT margin FY18

EUR 174m revenue 1Q19

17.6% EBIT margin 1Q19

2018 revenues up 13.9% year-on-year
1Q19 revenues up 10.5% year-on-year
Orders received in 1Q19 were good with large orders booked in China, Australia, the US and Columbia

Full-line offering with one of the largest installed bases world-wide, focus on roll-out of innovative products and market penetration through cross-selling of secondary and further processing solutions

MEAT

EUR 387m revenue FY18

11.3% EBIT margin adjusted for PPA¹ FY18

EUR 101m revenue 1Q19

12.6% EBIT margin adjusted for PPA¹ 1Q19

2018 revenues up 15.7% year-on-year
1Q19 revenues up 13.5% year-on-year, in part due strong growth in Asia and Oceania and the MAJA acquisition having a positive revenue and margin contribution
Target EBIT margin expansion in the medium and long-term

Full-line since 2016, focus going forward on strong product development, increased standardization, modularization and market penetration and further cross-selling and up-selling

FISH

EUR 159m revenue FY18

7.9% EBIT margin FY18

EUR 41m revenue 1Q19

7.4% EBIT margin 1Q19

2018 revenues up 20.3% alongside solid margin improvement of 3.7 percentage points year-on-year
1Q19 revenues up 5.5% year-on-year, in part due to higher proportion of revenues from service and spare parts
Target EBIT margin expansion in the medium and long-term

Aim to fill certain primary processing applications with innovation and / or M&A to accelerate full-line offering of data-driven processing focused on salmon, wild whitefish and farmed whitefish

Source: Company information. Note: All financial numbers relate to the 2018 Consolidated Financial Statements. Other segments account for around 1% of the revenues.¹ Adjusted for PPA related costs, including depreciation and amortization. PPA refers to amortization of acquisition-related intangible assets.

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SEGMENT BREAKDOWN - POULTRY

As the most advanced market segment within Marel, Marel Poultry provides strong margins and returns across the portfolio

REVENUES

EBIT

EBIT MARGIN

Poultry is the most advanced market segment within Marel and is fully standardised and modularised, resulting in strong profit margins
Significant uptake in the US has been the main catalyst for growth, although all regions have expanded
Greenfield projects made up a larger share of 2018 revenue than in 2016 and 2017, which resulted in lower gross profit, but will support future service and spare parts revenues
Equipment revenues have been accelerating faster than service and spare parts revenues, with the growing installed base supporting future growth in service revenues

Source: Company information.

SEGMENT BREAKDOWN - MEAT

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Strategic acquisitions have supplemented growth and improved operational performance for Marel Meat

REVENUES
EUR m

EBIT ADJUSTED FOR PPA¹
EUR m

EBIT MARGIN ADJUSTED FOR PPA¹

Segment supported by transformative acquisitions of MPS, Sulmaq and MAJA
Becoming a full-line provider in the industry is expected to support future growth
Increased efforts in standardization and modularization to improve margins since 2017
Significant increase in innovation efforts and focus in 2017 and 2018
Main markets include Europe and North America, with opportunities to expand in Eastern Europe
Greenfield projects and large projects with a particular focus on secondary processing, as well as service and spare parts business, are the main growth drivers

Source: Company information. Note: ¹ Adjusted for PPA related costs, including depreciation and amortization. PPA refers to amortization of acquisition-related intangible assets.

SEGMENT BREAKDOWN - FISH

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Current focus on building out full-line offering to improve returns across Marel Fish

Significant investments in innovation to focus on becoming a full-line provider
Lower margins compared to other segments given historically more customised solutions with higher costs and higher execution risks
Significant improvement in EBIT margins due to more favourable product mix, new innovations and better project execution
Further margin improvement targeted with increased focus on service and spare parts revenues based on a modular installed base
Product portfolio rationalised in 2016 as low margin manufacturing in Seattle was closed down

Source: Company information.

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STRONG COMPOUNDED ANNUAL REVENUE GROWTH

Marel has increased its top-line through organic initiatives as well as bolt-on acquisitions, with strong growth across all segments

Strategic acquisitions have strengthened the full-line offering and contributed to top-line growth, resulting in Marel's leading scale
Operating segments have experienced varying growth trends in recent years
Recent high demand for original equipment in Marel Poultry offers significant opportunity to lock-in future growth in service and spare parts revenues
Strategic acquisitions have driven growth in Marel Meat
Marel Fish revenue growth balanced between equipment and service revenues

Source: Company information.

Note: 1 MPS contributed EUR 166m and EUR 11m to inorganic revenues in 2016 and 2017, respectively. 2 Sulmaq contributed EUR 9m and EUR 21m to inorganic revenues in 2017 and 2018, respectively.

KEY PERFORMANCE METRICS

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Proven track record of earnings results and value creation

EARNINGS PER SHARE¹
EUR per share

FREE CASH FLOW²
EUR m

NET DEBT / EBITDA
Leverage (x)

Consistent and high EPS growth trajectory supported by strong free cash flows and cash conversion
Earnings per share expected to increase faster than revenue growth subject to continuing operational improvement and value creation
Free cash flow strengthened in 2017 as a direct result of exceptional improvements in working capital due to high growth in order intake
Stable leverage in recent years
Maintained leverage levels within targeted range despite acquisitions of MPS, Sulmaq, and MAJA in 2016, 2017, and 2018, respectively
Target capital structure of 2-3x net debt / adjusted EBITDA

Source: Company information.

Note: ¹ Basic earnings per share, trailing twelve months. ² Free cash flow defined as cash generated from operating activities less tax and net investments.

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CURRENT CAPITAL STRUCTURE AND MATURITY SCHEDULE

Marel issued its first Schuldschein promissory note in 2018

TOTAL BORROWINGS AND LIABILITIES (MAR'19)¹

BORROWING MATURITY SCHEDULE
Source: Company information.
Note: ¹ Operating leases included in financial debt as of 2018 year-end.

SCHULDSCHEIN PROMISSORY NOTE

First issue in the Schuldschein market of EUR 140m with a mixture of floating and fixed tranches in maturities of 5 and 7 years
Because of oversubscription the Schuldschein was increased to EUR 140m (from EUR 100m)
Vast majority placed in the 5-year tranche priced at 110bp over EURIBOR and the remainder placed in the 7-year tranche priced at 130bp over EURIBOR
Joint bookrunners were ABN AMRO, Bayerische Landesbank and UniCredit

SYNDICATED LOAN

The Group has a EUR 640m multi-currency syndicated loan facility agreement with seven international banks, led by ING Bank, Rabobank and ABN AMRO
The key elements of the financing are:
A five-year all senior loan and revolver, consisting of a EUR 243m and a USD 75m long-term loan and EUR 325m revolving credit facility, all with maturity in May 2022
Initial interest terms are EURIBOR/LIBOR +185 bps, which will vary in line with Marel's leverage ratio at the end of each quarter

% of total

WORKING CAPITAL MANAGEMENT

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Diligent net working capital management alongside significant net contract liabilities translates into solid year-over-year cash gains

NET WORKING CAPITAL EUR m

	2016	2017	2018
(+) Inventories	122	124	150
(+) Trade receivables	115	129	139
(+) Other receivables	33	47	45
(-) Trade payables	169	196	217
(-) Contract liabilities	114	161	168
Net working capital	(13)	(57)	(51)

Negative net working capital due to business model with significant down payment portion from customers
Substantial improvement in net working capital in 2017 as order book increased
When order book grows faster than revenue, net working capital improves as customers make down payments to secure orders and production commitments
Inventories, accounts receivable and accounts payable grow in line with revenues

Source: Company information.

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FINANCIAL TARGETS AND DIVIDEND POLICY

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions

		FY17	FY18	1Q19	TARGET
Revenue growth^{1}	Organic	5.0%	12.5%	-	12% average annual revenue growth in 2017-2026^{1}	Market conditions have been exceptionally favorable but are currently more challenging in light of geopolitical uncertainty. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix
In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions
Up to 2026, management forecasts 4-6% average annual market growth.
Marel aims to grow organically faster than the market, driven by innovation and growing market penetration
Solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition
	Acquired	2.1%	2.9%	-
	Total	7.1%	15.4%	12.6% YoY
Innovation investment		5.6%	6.2%	6.3%	~6% of revenues	To support new product development and ensure continued competitiveness of existing product offering
Earnings per share (EUR cent)^{2}		13.7	18.0	18.7	EPS to grow faster than revenues	Marel's management targets Earnings per Share to grow faster than revenues
Leverage		1.9x	2.0x	2.2x	Net debt / EBITDA 2-3x	The leverage ratio is targeted to be in line with the targeted capital structure of the company
Dividend policy		30%	30%	-	20-40% of net profit	Dividend or share buyback targeted at 20-40% of net profits. Excess capital used to stimulate growth and value creation

Source: Company information. Note: 1 Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems. 2 Trailing twelve months, EUR cents.

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CAPITAL RETURNS TO SHAREHOLDERS

Marel has consistently returned capital to shareholders while expanding the business and maintaining leverage levels

Dividend or share buyback targeted at 20-40% of net profits
Excess capital used to stimulate growth and value creation
Dividend policy first disclosed at AGM in 2011 and has remained at 20-40% of net profits since then
EUR 70m returned to shareholders through dividend and share buybacks in 1Q19

| Acquisition | MPS
exam processing systems | sulmaq | MAJOR | None |
| --- | --- | --- | --- | --- |
| Enterprise value (EUR m) | 382 | 26 | 36 | n.m. |
| Dividend pay-out ratio | 20% | 30% | 30% | n.m. |
| Net debt / adjusted EBITDA | 2.3x | 1.9x | 2.0x | 2.2x |

Source: Company information.

Note: 1 Share buybacks include purchase of treasury shares and expenditures relating to formal share buyback programmes.

KEY TAKEAWAYS

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STRONG TOP-LINE GROWTH	Strong organic revenue growth and resilient profitability
SOLID OPERATIONAL PERFORMANCE	Earnings per share growing faster than revenues given resilient margin development and controlled cost strategy
BALANCED REVENUE MIX	Global reach and focus on full-line offering across the poultry, meat and fish industries counterbalance fluctuations in operations
CASH FLOW GENERATION	Robust cash flow generation enables deleveraging, investments in infrastructure and the undertaking of strategic acquisitions, all contributing to the ability to return capital to shareholders

Q&A

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BREAK

14.30 – 14.40

Seeing the future is our business

We envision a world where quality food is produced sustainably and affordably. By using virtual reality to simulate food production, we speed up development and minimize waste.

That's the power in numbers

Capital Markets Day 2019

14:40 – 16:10

Business presentations

Global service and supply chain
Ulrika Lindberg, EVP of Service
Advancing food processing
David Wilson, EVP of Marel Meat
Innovation through partnership and the Innova intelligence inside
Roger Claessens, Manager of Research & Development in Marel Poultry

Global Service & Supply Chain

Ulrika Lindberg, EVP of Service

Capital Markets Day 2019

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EXECUTIVE VICE-PRESIDENT OF SERVICE

ULRIKA LINDBERG

Ulrika Lindberg joined Marel in 2018. She has extensive managerial experience in senior sales and service positions at large international organizations. Before joining Marel she was Vice President of Global Service at Alfa Laval and has held various management positions worldwide for Alfa Laval and Tetra Pak.

EDUCATION

BSc, Business and Administration, University of Lund

1 year with Marel / 22 years in Industry

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GLOBAL OPERATIONS

Marel's global operations and processes are set up to deliver outstanding customer experiences

Source: Company information.

Business origination and sales

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GLOBAL MARKETING

Marel markets its brand and platform through multiple channels

TRADESHOWS AND DEMO-CENTERS

+40 tradeshows and exhibitions
Hundreds of customer demonstrations and trainings

THE MAREL WEBSITE

+70,000 monthly visitors
+1,200 new business leads

DIGITAL TOOLS AND SOCIAL MEDIA

+360,000 views on YouTube channel
Active on LinkedIn, Twitter, etc.

OTHER CHANNELS INCLUDE EMAIL, GOOGLE, WEBINARS, ON-DEMAND EVENTS, MAGAZINES, ETC.

Source: Company information.

Note: Figures relate to 2018.

Business origination and sales

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GLOBAL SALES AND SERVICE NETWORK

Marel operates globally but has a local presence in more than 30 countries

Sales and service presence in more than 30 countries across 6 continents, ensuring local presence and support to customers in over 140 countries
Global organization of over 650 sales FTEs and 1,350 service FTEs, including more than 830 service engineers
Global presence prioritized according to installed base and revenue potential
Supported by an agent network in countries with less presence

Main sales / service locations

Source: Company information. Note: 1 Main locations shown on map – Marel has presence in more locations that are excluded from the map.

Business origination and sales

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EXAMPLE: CUSTOMER PARTNERSHIP

Marel works closely with customers to optimize their value creation and frequently helps them with vertical integration in the value chain

Marel frequently helps customers to expand operations in the value chain, e.g. from primary into secondary processing or from secondary into further processing
Expansion in the value chain can either happen when Marel starts working with a specific customer or later in the relationship

Source: Company information.

Engineering

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MAREL ENGINEERING

Marel delivers many standard products and systems; however, when customer specific configuration is needed, the team employs a rigid process to maximize engineering efficiency

Source: Company information. Note: 1 Engineering hours per million revenues are measured for layout/project engineering and order engineering, and has a positive effect on sales engineering, but which is not directly measured.

Sourcing and manufacturing

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SCALABLE AND SUSTAINABLE MODEL

Strong focus on standardization and modularization, as well as strategic supplier partnerships to prepare for further growth

Standardization and modularization
Parts
Innovation platforms
Design
Manufacturing equipment
Processes
Improved procurement capabilities by managing suppliers on a global scale
Standardized and modularized blocks to become more serviceable
Sustainable and scalable

TRIANGULAR COLLABORATION

Source: Company information.

Sourcing and manufacturing

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GLOBAL SUPPLY CHAIN

Marel has over 2,000 employees in its global supply chain, which enables everything from same-day spare parts delivery to distribution of major greenfield projects

GLOBAL SUPPLY CHAIN WITH OVER 2,000 EMPLOYEES...

Supply chain enables Marel to develop, launch and sell solutions, products and services by targeting delivery with the right quality, at the right time and at the right cost

Manufacturing

Process standardization and improvement
Manufacturing optimization between different manufacturing sites
Increasing flexibility and speed

Procurement

Supplier reduction, global category management leveraging long-term supplier relationships
Standardization of parts
Strategic sourcing and partnerships

Warehousing and logistics

The backbone to providing better service to customers
Equipment and spare parts

... OPERATING IN MULTIPLE SUPPLY CHAIN PROCESSES

Source: Company information.

Sourcing and manufacturing

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GLOBAL MANUFACTURING PLATFORM

Marel is increasingly utilizing its co-location strategy to further improve scalability, increase operational flexibility, advance operations and support growth

Pure manufacturing sites serve as cost efficient foothold into new markets in close proximity to clients
Assembly hours in developed labor markets continue to decrease
Target to reduce manufacturing, raw materials and G&A expenses
Platform aims to lower cost, increase flexibility, and reduce risks

MAREL'S CO-LOCATION STRATEGY...

Significant ramp-up enabled strong revenue growth in 2018

... EXECUTED IN FACILITIES SUCH AS NITRA...

Nitra is a pure manufacturing site that opened in 2005 and now has over 300 FTEs
New extension increased assembly capacity by ~50%
Mostly manufactures standard equipment such as graders and conveyors, but recently more technical production has been transferred e.g. SensorX

...WITH MORE CO-LOCATION CAPACITY TARGETED

Source: Company information.

Sourcing and manufacturing

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GLOBAL MANUFACTURING PLATFORM (CONTINUED)

13 manufacturing sites strategically positioned around the world to strengthen Marel's footprint, increase flexibility and scalability and enable further access to talent

Source: Company information. Note: 1 Counted as one manufacturing site. 2 Mother site location. 3 Co-location.

Project management and installation

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PRODUCT DELIVERY AND INSTALLATION

Marel has a well-defined process to optimize the delivery and installation of its products, with installations ranging from hours to weeks depending on complexity as well as customer needs and situation

Marel works closely with customers to ascertain exact plant needs ahead of initiating construction
Marel follows a meticulous planning process
Marel has been experimenting with using virtual reality and simulation to improve the overall process

EXAMPLE: LARGE CHINESE FACTORY UPGRADED IN JUST OVER A WEEK

OTHER CUSTOMER TESTIMONIALS

"Thanks to immense commitment, dedication, entrepreneurship, flexibility and ownership, the Global Marel Field Service Engineers team has been able to deliver an outstanding performance"

"... if I had to point out the one contract partner who always kept its promises and was always ready in time, it would be Marel..."

"Due to good preparations, cooperation and high commitment by Marel, the installation was executed according to plan, resulting in a smooth start-up on Monday."

Source: Company information.

Service and spare parts

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SERVICE AND SPARE PARTS

Marel has a broad service and spare parts offering representing ~35% of 2018 revenues

BROAD SET OF SERVICE OFFERING...

Broad service portfolio including repairs, planned maintenance, software services, support centers, installation service and spare parts services
Strong offering related to preventive maintenance, with ongoing development efforts in the area of predictive maintenance

... WITH SIGNIFICANT DELIVERIES...

Serviced ~5,500 customer accounts in the last 12 months
Conducted ~15,000 visits in more than 100 countries

Marel's revenue split (2018)

Service and spare parts 35%

Equipment 65%

... ENABLED BY SERVICE LEVEL AGREEMENTS

Increased focus on service contracts with proven results
Close to 100 dedicated service sales managers supported by a strong inside sales team
Renewal rate of 85%+ on European and North American contracts

A LEADING GLOBAL PLATFORM TO SERVICE A LARGE AND GROWING INSTALLED BASE

Source: Company information. Note: Numbers excluding Sulmaq and MAJA.

Service and spare parts

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LONG-TERM CUSTOMER RELATIONSHIPS

Marel builds strong and long lasting relationships with its customers

Marel strives to maintain long-term relationships with customers and subsequently become a maintenance partner
Total revenue profile typically comprises initial investment, additional investment and service contracts
Additional investments usually include capacity extension or further processing capabilities for customers
Favorable payment terms with down-payments

AN ILLUSTRATION OF A LONG-TERM CUSTOMER RELATIONSHIP

BALANCED BUSINESS MIX

Source: Company information.

The Marel Team: making it all possible

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THE TEAM BEHIND IT

Marel is dedicated to nurture, develop and retain its global team consisting of more than 6,000 employees

GLOBAL TEAM

MORE THAN 6,000 EMPLOYEES GLOBALLY¹

DEDICATED TALENT ACQUISITION

Continuous search and focus on building-up talent pools close to customers all around the world
Social media embraced for sourcing and branding, as well as close collaboration with educational institutions
FTE base increased by c. 440 employees in 2018²

FOCUSED TALENT RETENTION

Dedicated focus on retaining in-house talent through employee engagement programs
Active learning and development with multiple programs and courses available, e.g. “Marel Leadership Program” and “Potential Program”
Example: Marel has earned a reputation as sought-after employer in Brazil because of numerous training and career development opportunities
Remuneration Policy designed to attract, motivate and retain exceptional employees

MAREL IS DEDICATED TO NURTURE, DEVELOP AND RETAIN ITS GLOBAL TEAM

Source: Company information. Note: ¹ Chart illustrates the distribution of Marel's workforce by country (based on FTEs) and numbers are rounded to multiples of 5%. ² Excluding MAJA.

KEY TAKEAWAYS

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GLOBAL SALES AND SERVICE NETWORK	Sales and services locations in more than 30 countries to support customers in more than 140 countries globally
TOP ENGINEERING CAPABILITIES AND APPROACH	Continuous improvements and simplification initiatives have increased engineering efficiency
GLOBAL SUPPLY CHAIN AND MANUFACTURING	Partnership oriented supplier base and 13 manufacturing sites placed to further improve performance and increase access to talent
MAREL'S TEAM MAKING IT ALL POSSIBLE	Global committed team of more than 6,000 employees executing on Marel's strategy, making it all possible

Advancing food processing

David Wilson, EVP of Marel Meat

Received, Batch no. 01653614	31.01.19 14:00
Signed in	31.01.19 14:05
Assigned to inventory	31.01.19 14:10
Assigned to production line	01.02.19 07:15
CUT by P-CUT into 150 gr. Stegka	01.02.19 07:30
Packed	01.02.19 07:35
QC inspection: PASSED	01.02.19 07:40
Assigned to finished goods inventory	01.02.19 07:55
Fate used to customer order no SC151673	01.02.19 10:03
Dispatched	01.02.19 11:54

Capital Markets Day 2019

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MANAGING DIRECTOR (EVP) OF MAREL MEAT

DAVID WILSON

Following decades of experience in the food industry, David Wilson began in his current position in 2012. He has been with Marel and its predecessors since 1998. Wilson was Senior Vice-President for the Marel Poultry Industry Center in Gainesville until 2012. Prior to that he served as Vice-President of Sales and Marketing and as a Regional Sales Manager.

EDUCATION

MS, Animal Science, Aberdeen University

BS (Hons), Agricultural and Business Management, Aberdeen University

21 years with Marel / 24 years in Industry

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MAREL BUSINESS UNITS AT A GLANCE

Marel has a clear and defined strategy for each business unit

	POULTRY (53% of 2018 Revenues)	MEAT (32% of 2018 Revenues)	FISH (13% of 2018 Revenues)
MARKET SIZE	Food processing equipment, systems, software and services
~EUR 3.6bn	Food processing equipment, systems, software and services
~EUR 6.6bn	Food processing equipment, systems, software and services
~EUR 1.8bn
FOCUS MARKETS	1. Broiler
With the most complete product range and one of the largest installed bases world-wide, competitive position remains strong
2. Turkey
3. Duck	1. Pork
2. Beef
3. Veal
4. Sheep	1. Salmon
2. Wild whitefish
3. Farmed whitefish
MARKET POTENTIAL	▲ Consumers and regulators are requesting traceability from farm to fork
▲ Increased demand for SLAs² as the lines become more sophisticated
▲ New standards in animal wellbeing	▲ Automation in primary processing due to lack of labor and in secondary processing to increase yield, quality and throughput
▲ Value added processing with strong demand for efficient and flexible processing
▲ Favorable feed conversion³ expected to result in faster growth for pork relative to beef
▲ Increased demand for traceability, especially in export driven markets	▲ Differences in level of automation between species³
▲ Salmon benefitting from high prices driving strong demand for technology, quality and yield improvement
▲ Wild whitefish demand for agile equipment that optimizes the value of the raw material
▲ Automation expected to replace manual processing of fast growing farmed whitefish

Source: Company information. ¹ Food processing equipment, systems, software and services market size for 2019 based on Management estimates. ² Service Level Agreements. ³ Salmon is highly automated vs. farmed whitefish (e.g. tilapia and carps).

A. MAREL POULTRY

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WHY CUSTOMERS CHOOSE MAREL POULTRY

Marel Poultry offers the most complete and extensive product range to the global poultry industry

CHALLENGES FOR POULTRY PROCESSORS

Scarcity of labor and limited access to skilled employees lead to increasing need for greater levels of automation
Pressure from retailers to reduce cost
Traceability becoming more relevant driven by consumers and regulators
Need for more agile processing to meet growing number of SKUs

MAREL POULTRY KEY ATTRIBUTES

Most complete and extensive product range in the industry
Solutions for every capacity level, from 500 to 15,000 bph
Advanced technologies for all kinds of poultry processing plants, depending on regional and cultural requirements
Able to cover each process step, from live-bird handling to dispatch
Innova Food Processing Software completes the offering with manufacturing execution system ("MES") and line control

INDUSTRY BENCHMARK SETTING TECHNOLOGIES

Marel Poultry is the first supplier in the world to offer integrated 15,000 bph (250 bpm¹) lines

MODULAR APPROACH THAT CAN GROW WITH THE CUSTOMERS

Marel Poultry systems are modular in construction, meaning all components of the production process can be scaled up without the need to replace existing modules when extending

Source: Company information.

Note: ¹ Birds per minute.

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MAREL MILESTONES IN THE POULTRY INDUSTRY

Marel Poultry has grown through acquisitions and innovation providing its customers with best-in-class full-line equipment, systems, software and services

Source: Company information.
Note: Milestones before 2008 relate to Stork (1944 milestone relates to GAMCO Inc., a company acquired by Stork in 1976).

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MAREL POULTRY AT THE FOREFRONT OF INNOVATION

Marel Poultry is pioneering successful implementation of new industry concepts in partnership with its customers

RECENT PRODUCT LAUNCHES

Marel's presence

Primary processing	Secondary processing	Further processing
15,000 BIRDS PER HOUR PROCESSING

World's first supplier of integrated 15,000 bph^{1} lines

Significant increase in performance, lower production costs while maintaining highest quality, improved uptime and yield | THIGH FILLET/DEBONING SYSTEM

Consistent boneless thigh fillet at retail quality achieved for all products entering the system

Labor saving given optimized process, an absolute minimum of operators are needed to check and trim | HELIX DRUM TECHNOLOGY

Forming technology for RevoPortioner changes rotational intermitting low pressure forming into continuous filling enabling much higher volume

Transforms forming into a more reliable and robust process with constant meat flow and consistent end product |

Source: Company information.

Note: 1 Birds per hour.

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MAREL POULTRY'S STRONG AND DIVERSIFIED CUSTOMER BASE

Marel Poultry caters to a diversified and long-standing global customer base

STRONG AND DIVERSIFIED CUSTOMER BASE

CASE STUDY: CRANSWICK

Marel joined hands with Cranswick to build a chicken processing facility in Eye, Suffolk by implementing Marel's latest innovations and state-of-the-art solutions, including the 15,000 bph¹ integrated line system

"We want to have the best chicken factory with the highest processing speed, to become the premium poultry processor in Britain"

The class-leading facility at Eye, which is scheduled for completion in late 2019, will double our existing throughput of birds with further room for expansion

Source: Company information.

Note: ¹ Birds per hour.

FASTER IS BETTER

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Marel Poultry achieves unrivaled reliability at all-time high speed

Driven by the fast growing and urbanization world population, poultry consumption is expected to increase considerably
Processing plants need to intensify the operation to keep up with consumer demand
Processors are continuously looking for faster and more reliable solutions

MAREL POULTRY IS THE WORLD'S FIRST SUPPLIER OF INTEGRATED 15,000 BPH¹ LINES

Marel 15,000 bph technology is the result of continued investment in innovative products throughout the years

Significant increase in performance and yield
Strong reliability
Lower production cost
High quality and sustainability

Source: Company information.

Note: ¹ Birds per hour.

B. MAREL MEAT

Received. Batch no. 01653614	31.01.19 14:00
Signed in	31.01.19 14:05
Assigned to inventory	31.01.19 14:10
Assigned to production line	01.02.19 07:15
CUT by I-CUT into 150 gr. Steaks	01.02.19 07:30
Packed	01.02.19 07:35
QC Inspection: PASSED	01.02.19 07:40
Assigned to finished goods inventory	01.02.19 07:55
Palletized to customer order no:S0151673	01.02.19 10:03
Dispatched	01.02.19 11:54

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WHY CUSTOMERS CHOOSE MAREL MEAT

Marel Meat offers full-line equipment, systems and services from live animal handling to dispatch with overarching software, applying deep technical meat processing know-how

CHALLENGES FOR MEAT PROCESSORS

Lack of available labor force
Yield is critical to optimize financial performance
Processing deficiencies throughout the value chain reduce performance, creating significant losses
Automation and robotization result in the need for improved service capabilities, data management and KPIs to monitor plant efficiency
Shift in consumer preferences and how food processors can adapt

MAREL MEAT'S KEY ATTRIBUTES

Clear vision for the future of the meat processing industry
Strong investment in innovation – develop solutions with Marel's customers
Full-line supplier – primary, secondary and further processing and in-house software management (Innova) solutions
Strong project management and strong meat processing "know-how" – technical and technological
Strong knowledgeable service organization, providing full range of solutions

SCALABILITY: KEEPING FLEXIBILITY WITH VOLUMES

FULL-LINE SUPPLIER OF INTEGRATED EQUIPMENT, SYSTEMS, SOFTWARE AND SERVICES

Source: Company information.

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MAREL MILESTONES IN THE MEAT INDUSTRY

Marel Meat is full-line since 2016 and has grown both through strategic acquisitions and continuous innovation, focus on increased standardization, modularization and cross-selling and up-selling

Source: Company information.

Acquisition

Other milestone

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INNOVATION THROUGHOUT THE PROCESSING VALUE CHAIN

Marel Meat is solving major modern food production challenges by partnering with its customers to create innovative solutions across the value chain

RECENT PRODUCT LAUNCHES

■ Marel's presence

Primary processing	Secondary processing	Further processing
M-LINE ROBOT
2^{nd} generation automatic systems and robots that combine the latest 3D scanning technology and robotic accuracy using articulating arm robots
Higher yield on splitting, improved scanning and increased levels of reliability	NEW TRIM INSPECTION SYSTEMS - FOR UNIFORM AND CUSTOMISED RECIPES
The new SensorX Accuro and SensorX Magna accurately detect bones and measure fat / lean in meat and ensure highest standards in food safety and product quality
Food safety, product quality and uniformity which rate high with most meat processors	PREMIUM FORMER
Unique solution for forming all types of premium burgers, including standard, tender fresh, home style and butcher
Superior product quality in terms of both texture and bite

Source: Company information.

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MAREL MEAT'S STRONG AND DIVERSIFIED CUSTOMER BASE

Marel Meat creates, innovates and implements solutions customers need to create a diversified, long-standing and global customer base

STRONG AND DIVERSIFIED CUSTOMER BASE

CASE STUDY: SUKARNE

SuKarne recently built a new processing plant in Durango, Mexico as a part of a comprehensive agriculture site where adjacent feedlots hold ~250k head of cattle including dairy cows, steers, heifers and bulls

"We have had—and still have—very good and successful cooperation with Marel. I especially want to highlight the Marel process consultant, who, during the implementation period, was extremely good at helping with optimizing our production processes, improving our reports and helping with maintenance procedures"

Source: Company information.

C. MAREL FISH

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WHY CUSTOMERS CHOOSE MAREL FISH

Marel Fish offers advanced technology to improve customers' operations, using innovation to make fish processing more efficient and profitable

CHALLENGES FOR FISH PROCESSORS

Shift from wild catch to aquaculture
Need for greater automation improving throughput, yield and quality driving cost efficiencies
Traceability becoming more important given higher level of automation and food safety requirements
Constant supply of quality raw material

MAREL FISH'S KEY ATTRIBUTES

Maximum food safety, yield and automation
High degree of flexibility driving efficiency and maximization of throughput
Full traceability and value cut at all times
Standard equipment and modular building blocks based on the integrated line approach
Software, monitoring and training solutions complete the offering

WORLD CAPTURE FISHERIES VS. AQUACULTURE (FARMED FISH) PRODUCTION¹

Source: Company information, World bank – world development indicators.

Note: ¹ Annual Production of seafood from wild-catch fisheries and aquaculture (farmed seafood) practice, measured in metric tonnes per year. Data is inclusive of all aquatic species, including aquatic animals and plants.

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MAREL MILESTONES IN THE FISH INDUSTRY

Marel Fish processing systems are designed to increase and maintain the highest quality, throughput and yield possible, leading the way to improved processing efficiency

Source: Company information.

INNOVATION IS KEY TO ATTRACT AND RETAIN CUSTOMERS

Marel Fish provides the global fish industry with state-of-the-art technology

MAREL FISH'S STRONG AND DIVERSIFIED CUSTOMER BASE

Strong and long-standing customer relationships

STRONG AND DIVERSIFIED CUSTOMER BASE

CASE STUDY: MOWI

MOWI installed a Marel grader solution and packing line, managed by Innova Food Processing Software, to improve plant efficiency and increase throughput without changing their crew

"We've been in partnership with Marel for several decades and it's a great advantage for us to continue with Marel as a supplier"

"We didn't expect the production to work at this capacity this early. To see these results now is just amazing"

"Communication between MOWI and Marel has been great – right from the beginning of the design process through to installation and startup, and met all our expectations"

Source: Company information.

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MAREL FISH AT BRUSSELS SEAFOOD SHOW 2019

In addition to releasing four new products for sale at Brussels, the Marel Fish stand will feature numerous products introduced in the past 12 months

4 NEW PRODUCT RELEASES IN BRUSSELS

The fully automatic RoboBatcher Thermoformer
Makes filling orders easier and more efficient by automatically adjusting processing based on which product weights and sizes best match the order requirements
The new and improved Compact Grader
Features a user-friendly interface with a new display and multiple programs that make grading even easier
The revolutionary FleXicut pinboner and fillet portioner with the FleXitrim trimming line,
Its advanced feedback capability gives operators the information they need to improve trimming results
For grading and packing, the new M2400 Scales
An advanced, high-precision weighing and monitoring with full digital control scales based on the M2200, which has served as one of the most accurate scales or over 30 years on the market

NEW IN SALMON PROCESSING

3 new products already released in 2019
Improve processing results in terms of end-product quality, yield and reduced labor costs
Great examples of how Marel makes salmon processing more intelligent – and therefore more efficient, more sustainable, and more profitable

1 QC Scanner

2 FleXicut Salmon

3 The Pacelnfeeder for the Filleting Machine

INNOVA – NEW IN SMARTER PROCESSING

New releases from Innova this year include Innova for FlexiTrim
Includes individual performance monitoring for yield, throughput and quality, and a more streamlined infeed to FleXicut.

Source: Company information.

car

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KEY TAKEAWAYS

Marel has a clear and defined strategy to become a full-line provider in each business unit and continue to grow and improve profitability

POULTRY	MEAT	FISH
1 Continue to increase and strengthen its strong world-wide presence	1 Shift from volume to value: focus on developing flexible and cost efficient solutions to meet the rapidly changing demand of Marel's customers and consumers	1 Accelerate full-line offering by expanding applications within primary processing
2 Introduce new technologies to increase automation and create value for customers	2 Introduce new technologies to increase automation further and improve yield across the active value chain	2 Enable fish processors to generate higher value through better utilization of raw material, maximization of throughput and better quality and process control
3 Promote upselling of secondary and further processing equipment to primary processing customers in order to reach long-term growth targets	3 Promote upselling of secondary and further processing equipment to primary processing customers in order to reach long term growth targets	3 Continue assuming leading role in furthering data-driven processing and food safety in the fish industry
4 Further penetration in high growth developing countries	4 Improve profitability through increased market presence, efficiency and further standardization	4 Maintain technology leadership through continuous innovation and the incorporation of robotics, analytics and software

Innovation through partnership

Roger Claessens, Manager of Research & Development in Marel Poultry

Capital Markets Day 2019

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MANAGER OF RESEARCH & DEVELOPMENT IN POULTRY

ROGER CLAESSENS

Roger Claessens is Marel's Manager of Research & Development in Poultry. He has been with Marel and its predecessors since 2001. Before taking up his current position in April 2014, he served as Product Specialist and Manager Process Technology.

EDUCATION

M.Sc., Agricultural Engineering, Wageningen University & Research.

18 years with Marel / 18 years in Industry

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THE MAREL VISION

IN PARTNERSHIP WITH CUSTOMERS WE ARE TRANSFORMING THE WAY FOOD IS PROCESSED. THE MAREL VISION IS OF A WORLD WHERE QUALITY FOOD IS PRODUCED SUSTAINABLY AND AFFORDABLY

UNITY	EXCELLENCE	INNOVATION

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INNOVATION OVERVIEW

Marel is at the forefront of innovation, envisioning a world where quality food is produced sustainably and affordably

COMMITTED TO INVESTING ~6% OF REVENUES IN INNOVATION

CREATING VALUE BY DEVELOPING DIVERSIFIED PRODUCTS AND SERVICES IN PARTNERSHIP WITH CUSTOMERS

BUILDING AN INFRASTRUCTURE THAT CROSS UTILISES PLATFORMS BETWEEN INDUSTRIES AND ACCELERATES INNOVATION

>850 FTEs DEDICATED TO INNOVATION GLOBAL

>320 PATENT FAMILIES WITH ~2,500 REGISTRATIONS, SECURING TECHNOLOGICAL LEADERSHIP POSITION

OVER 15 NEW PRODUCTS LAUNCHED IN 2018

SUSTAIN BUSINESS THROUGH CONTINUOUS IMPROVEMENTS TO PRODUCT PORTFOLIO

INNOVA FOOD PROCESSING SOFTWARE TO CONTROL, MONITOR AND IMPROVE

Source: Company information.

INNOVATION INVESTMENT

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Strong cash flows enable substantial investment in innovation that drives future growth

Continuous investment in innovation to serve growing customer needs and strengthen full-line solutions
Innovation efforts are focused on customer drivers, market and technology trends
Strategic investments in software development are made to control, monitor and improve customers' full-line processes
Partnerships in innovation programs with universities to ensure future blue ocean developments
Connecting solutions via unified infrastructure gives customers a competitive edge in the market

STRONG COMMITMENT TO CONTINUE INVESTMENTS IN INNOVATION TO MAINTAIN COMPETITIVE ADVANTAGE, WITH ~6% OF REVENUES TARGETED ANNUALLY

Source: Company information.

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PRODUCT DEVELOPMENT PROCESS

Marel employs a strict process framework when evaluating new products to ensure efforts are spent on progressing valuable, feasible and usable technologies

Focus on market
Value proposition and business case for the customer and Marel
Define the "spark" which adds value
Development process is a joint-effort among Marel's global workforce, with Innovation, Sales, Service, and Supply Chain collaborating across stage gate process
Goal of each stage is to get the optimal solution for the customer and Marel while minimizing time to market

Source: Company information.

BENEFITS OF INNOVATION

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Significant improvements in efficiency and yield are value enhancing for customers

INNOVATION DRIVES...

IMPROVED AUTOMATION
PROCESS CONTROL
FOOD SAFETY
STANDARDISATION
TRACEABILITY
ANIMAL WELLBEING
SUSTAINABILITY
UPTIME PERFORMANCE

...CREATING TANGIBLE VALUE FOR CUSTOMERS

Poultry

Meat

Fish

Source: Company information. Note: 1 Birds per hour. 2 Pigs per hour. 3 Kilograms per man-hour.

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STRATEGIC OBJECTIVES FOR INNOVATION AT MAREL

Innovation strategically focuses on three key areas: new product development, sustaining the business and creating a common core technical platform for Marel and its customers

Source: Company information.

New product development

Sustaining the business

Software

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AT THE FOREFRONT OF INNOVATION

Marel has introduced over 50 new products to the market in the past 3 years, with numerous examples of advanced product development providing full-line solutions for customers

Source: Company information. Note: 1 Chemical lean ratio.

New product development
Sustaining the business
Software
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CASE STUDY: ATLAS LIVE BIRD HANDLING SYSTEM

Featuring a high tech loadable pallet with a variable number of trays, ATLAS not only gives high attention to animal wellbeing but also increases efficiency considerably

Improved efficiency, including loading, transport, cleaning and uptime
Loading capacity can increase up to 22%, which means fewer truck movements and lower CO2 emissions
No additional handling and human contact after loading
Optimal cleaning sets new benchmark in the industry
Robust design for high capacities
Innova production control platform
Fully integrable with modular CAS¹ stunning system

Source: Company information. Note: ¹ Controlled atmosphere systems.

New product development
Sustaining the business
Software
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CASE STUDY: ATLAS LIVE BIRD HANDLING SYSTEM (CONTINUED)

ATLAS has been rolled-out globally, with over 25 systems sold to date

Source: Company information: Note: ¹ Not representative of entire customer base.

New product development
Sustaining the business
Software
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PRODUCT LIFECYCLE AND STRATEGY

Upgrading and adding modules to previously launched products extends the product lifecycle

Innovation to sustain and improve product lifecycle is a focal point of Marel's strategy
Standardization and platform focus to leverage scale and enhance maintenance phase
Extending product lifecycle increases installed base and enables increased focus on new product development

DEBOFLEX
Pork fore-end leg deboning system

DEBOFLEX
IN-LINE
DE-SKINNING &
DEFATTING
Higher deboning capacity for increased yields

DEBOFLEX
MODULES
Shoulder blade puller & shank pre-cutting

Profit
PRODUCT DEVELOPMENT
PRODUCT INTRODUCED TO MARKET
PRODUCT UPGRADES AND NEW MODULES INTRODUCED
DEVELOPMENT AND LAUNCH OF NEXT GENERATION

Source: Company information.

New product development
Sustaining the business
Software
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INNOVATION ACROSS INDUSTRIES

Three great examples of products that were developed for one industry and have been successfully adapted for all of Marel's key industries, and how Innova ties it all together

Source: Company information.

New product development
Sustaining the business
Software
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INNOVATION ACROSS INDUSTRIES (CONTINUED)

In the secondary and further processing parts of the value chain, the processing steps become more homogenous across industries, e.g. portioning, batching, weighing and marinating

I-CUT PORTIONCUTTER

The I-Cut PortionCutter uses a 3D scanner to calculate product weight and decide where to cut to gain the best possible yield
Same technology is used in all I-Cut portion cutters across industries, with slight variations for poultry, meat and fish products
Poultry needs more capacity, so two lane machines and smaller knives are utilized
Meat needs to handle larger products, so the machine has larger knives and specific wider V-belts that hold the product stable
Fish needs the machine to be adaptable in order to handle different species (e.g. salmon and whitefish)

MAREL'S ABILITY TO ADAPT TECHNOLOGIES ACROSS PROTEIN TYPES PROVIDES A UNIQUE VALUE PROPOSITION

Source: Company information.

New product development
Sustaining the business
Software
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A UNIQUE SOFTWARE PLATFORM

Marel has developed Innova, a unique proprietary software platform enabling device control, as well as efficient factory and process management with over 2,000 installations world-wide

EMBEDDED SOFTWARE

Device functionality creating superior value for food processors
Examples include image recognition and portioning optimization

CONNECTED SOLUTIONS

Integrated with hardware to enable controlling, monitoring and operating multiple devices as a single system
Examples include quality control, yield management and automated operation

> S-form "We were blind before"
> "We are able to trace production all the way to finished products. Now we can see things as they happen and manage them"

INNOVATIVE CUSTOMERS

CONNECTED BUSINESS

Factory and production management with automated real-time decisions to maximize value, safety and order fulfilment
Examples include ERP¹ integration, traceability, planning and multi-site overall equipment effectiveness ("OEE")

Innova provides real time monitoring of key performance indicators

Labor Efficiency	Throughput	Yield	Quality	Capacity	Uptime

Source: Company information; Note: ¹ Enterprise resource planning.

New product development

Sustaining the business

Software

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CASE STUDY: INNOVA AT WORK

Einhamar Seafood successfully integrated Marel's Innova Food Processing Software to control, oversee and trace their fast paced fresh fish export operation in Iceland

Traceability lots

EXAMPLE DASHBOARD

Innova Food Processing Software has improved product utilization and increased yield at Einhamar Seafood
Being able to present full traceability for Einhamar's products has met their customers' needs and strengthened the trust between them
Sophisticated and user-friendly platform enables a more secure and consistent controlling, monitoring and data recording
Automatic registration of by-products helps maximize yield by providing an accurate record of quantity and type of heads, bones and mince

Source: Company information. 1 Step in the process where an identification number is given to a group of inputs originating from one control area (whether a shed from a farm, carrier from the sea, etc.), where the conditions (such as feed, housing, transport, etc.) are standardized for all specimens.

New product development
Sustaining the business
Software
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CUSTOMER TESTIMONIES

INNOVA

Food Processing Software

	CONTROL
“We’ve worked with the Marel development team over the past 10 years to help tailor the software to our industry, and we’ve been able to solve all the business challenges around traceability, packaging, order control and inventory management…..One of the main benefits of Innova for Trident has been the ability to standardize platforms across facilities. We operate plants in multiple time zones and what we’ve been able to do over the last 10 years is standardize all operations around the same system.”
Jarred Brand, Director
Manufacturing Engineering and Technology
	MONITOR
“Innova allows us to keep records throughout each day and traceability for USDA records from not only start, but also now to finish…..We have traceability of what goods were used to cut each individual steak. If the USDA has a recall from a specific supplier, I would be able to, instead of throwing out a whole bunch from that day, narrow the recall down to the exact cases, or to the exact sub primal. This of course gives me tremendous peace of mind.”
Dan Fernandez
Meat Unit Production Manager
	IMPROVE
“Before implementing the Innova solution, it could take 36-40 hours for a fish to be processed. Now we can ensure it takes no more than 20 hours by having the Innova system set alarms that enable us to better organize production, make quick decisions and avoid delays…..Faster response times lead to the production of fresher products, so Innova has enabled us to deliver higher quality products to our customers.”
Gerardo Crot
Processing Manager

Source: Company information.

KEY TAKEAWAYS

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INNOVATION AT THE HEART OF COMPANY BUSINESS MODEL	Committed to investing ~6% of revenues in innovation in partnership with customers; +15 new products launched in 2018
INTEGRATED PRODUCT OFFERING	Transfer of technologies across industries to leverage synergies from new product development, product optimization and modularization
INNOVA SOFTWARE PLATFORM	Innova is a powerful and comprehensive software that collects data, allowing for improved performance and enhanced productivity
EXCEPTIONAL SOLUTIONS FOR CLIENTS	Integrated product offering, tailored services and software support that pushes the innovative frontier, adds value and is made to work

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Q&A

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CLOSING REMARKS

Árni Oddur Thórdarson
Chief Executive Officer

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16:15 – 17:00

Breakout sessions

Factory tour

Tour of Marel's manufacturing site in Boxmeer

Demo center visit

Live demonstration of processing equipment in the demo center

Virtual reality experience

A virtual reality visit to Marel's key customer sites

17:00 – 18:00

Reception and light refreshments

Capital Markets Day 2019

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THANK YOU!

APPENDIX

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Experienced Management Team

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Well respected and seasoned management team with extensive experience within the broader food processing sector

BUSINESS UNIT LEADERS

Anton de Weerd
Managing Director of Marel Poultry
38 years with Marel / 38 years industry related

David Wilson
Managing Director of Marel Meat
21 years with Marel / 24 years industry related

Linda Jónsdóttir
Chief Financial Officer
9 years with Marel / 9 years industry related

Vidar Erlingsson
Executive Vice President of Innovation
19 years with Marel / 19 years industry related

Ulrika Lindberg
Executive Vice President of Service
1 year with Marel / 22 years industry related

Einar Einarsson
Executive Vice President of Global Markets
16 years with Marel / 16 years industry related

Sigurdur Ólason
Managing Director of Marel Fish
12 years with Marel / 30 years industry related

Jesper Hjortshøj
Managing Director of Marel Further Processing
13 years with Marel / 16 years industry related

Árni Sigurdsson
Executive Vice President of Strategy and Development
5 years with Marel / 8 years industry related

Folkert Bölger
Executive Vice President of Global Supply Chain
3 years with Marel / 3 years industry related

David Freyr Oddsson
Executive Vice President of HR
8 years with Marel / 8 years industry related

Source: Company information.

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BOARD OF DIRECTORS

All seven Board members are considered independent of the Company. Furthermore, five of the Board members are considered independent of the Company's major shareholders

ÁSTHILDUR MARGRÉT OTHARSDÓTTIR¹

Chairman of the Board

Ásthildur Margrét Otharsdóttir is an independent consultant and a board member of several companies. She served as the Director of Treasury and Corporate Development at Össur hf. and as a Senior Account Manager at Kaupthing Bank (now Arion Bank), as well as a consultant at Accenture in Copenhagen. She is the Chairman of the Board of the investment fund Frumtak Ventures and a former member of the Board of Directors of Icelandair Group

ARNAR THOR MÁSSON¹

Vice-Chairman of the Board

Arnar Thor Måsson is currently the Alternate Director at the European Bank for Reconstruction and Development in London and serves as the Chairman of Marel's audit committee. He served as Director General of the Department of Administrative Development at the Prime Minister's Office in Iceland and Deputy Director General of the Financial Management Department at the Ministry of Finance

ÓLAFUR S. GUDMUNDSSON

Board Director

Dr. Ólafur S. Gudmundsson is the Head of Discovery, Pharmaceutics at Bristol-Myers Squibb, a global biopharma company. He has previously held various senior level management positions within R&D in the pharmaceutical industry, both for Bristol-Myers Squibb and Genentech Inc

ÁSTVALDUR JÓHANNSSON¹

Board Director

Ástvaldur Jóhannsson has served in various senior management positions at Össur hf., a global non-invasive orthopedics corporation and as the Executive Director of the International Division of Valitor hf., an e-commerce payment solutions and services provider

MARGRÉT JÓNSDÓTTIR

Board Director

Margrét Jónsdóttir is the Managing Director of Operations for Eyrir Invest hf. Previously, she was the Director of Finance at Edda Publishing. She also worked as the Director of Finance at Kreditkort/MasterCard and the Manager of Accounts at FBA Investment Bank

TON VAN DER LAAN¹

Board Director

Ton van der Laan has extensive experience from executive roles in the food industry. He is a non-executive Board Member of Vion Foods, Royal de Heus, Dümmen Orange and the Rainforest Alliance. Previously, he was CEO of Nidera Capital in the Netherlands and Argentina and has held several executive roles at Unilever

ANN ELIZABETH SAVAGE¹

Board Director

Ann Savage has previously served as the Technical Director of Bakkavor Group, a leading international manufacturer of fresh prepared foods. She was also a member of the company's management board

Note: ¹ Considered independent of the company's major shareholders.

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MAREL TOP SHAREHOLDERS

Top 20 largest shareholders (as of 29 April 2019)

		30.04.2019
Rank		Type	# Shares	% of Total
1	Eyrir Invest hf.	Investment company	190,366,838	28.37
2	Lifeyrissjöður verslunarmanna	Pension fund	66,454,042	9.90
3	Gildi - lifeyrissjöður	Pension fund	38,593,561	5.75
4	Lifeyrissjöður starfsmanna rikisins A-deild	Pension fund	30,858,000	4.60
5	Smallcap World Fund Inc.	Asset management	30,060,697	4.48
6	Birta lifeyrissjöður	Pension fund	24,116,917	3.59
7	JNE Partners	Investment company	24,100,000	3.59
8	Teleios Global Opportunities	Asset management	16,705,468	2.49
9	Festa - lifeyrissjöður	Pension fund	12,637,988	1.88
10	Stapi lifeyrissjöður	Pension fund	12,615,961	1.88
11	Frjálsi lifeyrissjöðurinn	Pension fund	12,234,289	1.82
12	Landsbankinn - safnreikningur 1	Bank - custody account	11,772,189	1.75
13	Lifeyrissjöður starfsmanna rikisins B-deild	Pension fund	10,262,370	1.53
14	Stefnir - ÍS 15	Asset management	9,878,065	1.47
15	Stefnir - ÍS 5	Asset management	8,914,924	1.33
16	Almenni lifeyrissjöðurinn	Pension fund	8,889,220	1.32
17	Brú - lifeyrissjöður starfsmanna sveitarfélaga	Pension fund	7,523,631	1.12
18	Lifsverk lifeyrissjöður	Pension fund	5,706,695	0.85
19	American Funds Insurance Series	Asset management	5,419,903	0.81
20	Söfnunarsjöður lífeyrísréttinda	Pension fund	5,368,994	0.80
Top 20 Total			532,479,752	79.36
Others			127,248,350	18.96
Marel hf¹			11,279,814	1.68
Total Issued Shares			671,007,916	100.00

Source: Company information.
Note: ¹ On 6 March 2019, the Annual General Meeting approved, amongst others, an authorisation for Marel to acquire up to 10% of its own shares. The authorisation is effective for the next 18 months from approval.

HISTORICAL SHARE PRICE PERFORMANCE

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Marel has consistently outperformed the market

A 2 Nov 2015
Signed definite agreement to acquire MPS for EUR 382m

B 9 Feb 2017
Announced 2016 financial results

C 26 Jul 2017
Announced acquisition of Sulmaq for EUR 26m

D 2 Nov 2017
Hosted first Capital Markets Day

E 6 Mar 2018
Announced intention to consider listing alternatives available to Marel at the 2018 AGM

F 25 Jul 2018
Announced acquisition of MAJA for EUR 35m

G 22 Nov 2018
Narrowed alternative listing options to dual-listing at EGM, announced buyback programme

H 6 Feb 2019
Announced 2018 financial results

I 6 Mar 2019
Announced Euronext Amsterdam had been selected for dual-listing of Marel's shares

J 29 Apr 2019
Announced Q1 2019 financial results

SHARE PRICE PERFORMANCE

Period	Since Jan 1, 2014	3-yr	2-yr	1-yr	1-m
Marel (ISK)	324%	120%	63%	46%	6%
Marel (EUR)	393%	126%	39%	31%	7%
OMX Iceland All share	65%	8%	5%	4%	6%

Source: Company information, FactSet as of 30 Apr 2019.

三

BASIS OF PREPARATION OF FINANCIAL INFORMATION

Basis of preparation	· Annual financial information shown throughout this presentation is based on the audited consolidated financial statements of Marel hf. for the years ended 31 December 2018, 2017, 2016, 2015 and 2014 and has been prepared in accordance with IFRS · Quarterly financial information disclosed herein is based on externally published accounts and has not been audited or reviewed by an external auditor
The reporting process at Marel	· Monthly reporting by all operating entities by the 6th working day after month closing · Management conducts monthly business review meetings with industry segments and business support functions · Annual operational plan and 12-month rolling forecast updated monthly · SAP is the main ERP system in the largest locations · Financial metrics not adjusted for FX impact
Risk management	· Marel's reporting currency is Euro (EUR) · Treasury and risk management actively monitor financial risks (e.g. FX, interest rates, credit risk and liquidity) · In general naturally well hedged for FX exposures; main FX risks in USD (USD revenues are higher than USD costs) and in ISK (ISK costs are higher than ISK revenues) · Contracts predominantly quoted in EUR or USD

Basis of preparation

· Annual financial information shown throughout this presentation is based on the audited consolidated financial statements of Marel hf. for the years ended 31 December 2018, 2017, 2016, 2015 and 2014 and has been prepared in accordance with IFRS · Quarterly financial information disclosed herein is based on externally published accounts and has not been audited or reviewed by an external auditor

The reporting process at Marel

· Monthly reporting by all operating entities by the 6th working day after month closing · Management conducts monthly business review meetings with industry segments and business support functions · Annual operational plan and 12-month rolling forecast updated monthly · SAP is the main ERP system in the largest locations · Financial metrics not adjusted for FX impact

Risk management

· Marel's reporting currency is Euro (EUR) · Treasury and risk management actively monitor financial risks (e.g. FX, interest rates, credit risk and liquidity) · In general naturally well hedged for FX exposures; main FX risks in USD (USD revenues are higher than USD costs) and in ISK (ISK costs are higher than ISK revenues) · Contracts predominantly quoted in EUR or USD

Source: Company information.

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INCREASED PROFITABILITY THROUGH COGS EFFICIENCY AND OVERHEAD REDUCTION

Streamlining of manufacturing footprint in 2014 and 2015 translated into gross margin uplift

Material improvement in gross profit in 2014 – 2015 driven by the “Simpler, Smarter, Faster” programme, which refocused the manufacturing platform and optimised the product portfolio
More agile production footprint with smaller fixed cost burden as manufacturing plants streamlined and reduced from 19 to 9
Change in gross profit between 2016 and 2017 is predominantly due to alignment in reporting connected to the acquisition of MPS (Dutch GAAP to IFRS), alignment in service reporting across Marel (reclassification from S&M to COGS) and adverse currency effect

Marginal increase in G&A as a percentage of revenues is largely driven by one-off costs stemming from ongoing improvement projects and M&A
Sales and marketing expenses show a steady reduction since implementation of “Simpler, Smarter, Faster” programme
Currently focused on increasing the front-line sales and marketing platform, as well as improving efficiency in G&A functions

Source: Company information. Note: 1 Before refocusing cost.

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STRONG ANNUAL CASH FLOW GENERATION

Strong cash flow enabled both deleveraging and the undertaking of strategic acquisitions

Strong operating cash flow in 2018
Operating cash flow fluctuates with the development of order intake and revenue levels
If order intake grows faster than revenue, working capital improves
Investments at relatively high level in 2017 and 2018 due to housing, manufacturing expansions and ongoing investments in IT

Source: Company information.

Note: 1 Free cash flow defined as cash generated from operating activities less tax and net investments.

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CAPITAL EXPENDITURE DEEP DIVE

Firm commitment to continuously invest in innovation and the operational platform

CAPITAL EXPENDITURES (EXCLUDING M&A)

Current asset base and manufacturing footprint well equipped for significant future growth without need for major new investments
Future growth supported by modernisation and automation in production facilities
Capital expenditures include recent expansion in Slovakia, as well as modernisation of facilities, e.g. in the Netherlands, Iceland, Denmark and U.K.
Ongoing investments in the IT platform expected to continue to support long-term operational improvements

R&D EXPENSES

R&D projects are capitalised according to IFRS
Projects over EUR 500k with probable future economic benefit and technical feasibility of completing the project are capitalised
Capitalisation lower in 2018 due to higher R&D cost resulting from software investments (Innova), which is mostly expensed
Committed to keeping R&D cost around 6% of annual revenues

Source: Company information. Note: 1 Classified as "other intangibles". 2 Also includes development impairments. 3 Acquisition cost net of cash acquired.

INCOME STATEMENT SUMMARY: FY 2018

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In EUR million (unless stated otherwise)	FY 2016	FY 2017	FY 2018
Revenues	969.7	1,038.2	1,197.9
Cost of sales	(572.7)	(631.5)	(730.4)
Gross profit	397.0	406.7	467.5
Selling and marketing expenses	(128.5)	(120.5)	(133.7)
Research and development expenses	(63.1)	(57.8)	(73.7)
General and administrative expenses	(66.2)	(71.0)	(84.9)
Other operating income	0.2	--	--
Adjusted result from operations^{1}	139.4	157.4	175.2
Adjustments	(24.6)	(17.1)	(14.3)
Result from operations	114.8	140.3	160.9
Net finance costs	(25.4)	(20.3)	(14.9)
Result before income tax	89.4	120.0	146.0
Income tax	(13.6)	(23.1)	(23.5)
Net result	75.8	96.9	122.5

Source: Company information.

Note: ^{1}
Adjusted for PPA related costs, including depreciation and amortisation. PPA refers to amortisation of acquisition-related intangible assets.

134

INCOME STATEMENT: Q1 2019

marel

Gross profit was EUR 125.4 million or 38.6% of revenues and net result was EUR 32.2 million

In EUR million	Q1 2019	Of revenues	Q1 2018	Of revenues	Change
Revenues	324.6		288.4		+12.6%
Cost of sales	(199.2)		(176.9)		+12.6%
Gross profit	125.4	38.6%	111.5	38.7%	+12.5%
Selling and marketing expenses	(37.3)	11.5%	(32.6)	11.3%	+14.4%
Research and development expenses	(20.6)	6.3%	(17.4)	6.1%	+18.4%
General and administrative expenses	(20.0)	6.2%	(17.7)	6.1%	+13.0%
Adjusted result from operations¹	47.5	14.6%	43.8	15.2%	+8.4%
PPA related costs	(2.6)		(2.3)		+13.0%
Result from operations	44.9	13.8%	41.5	14.4%	+8.2%
Net finance costs	(3.8)		(6.0)		-36.7%
Result before income tax	41.1		35.5		+15.8%
Income tax	(8.9)		(7.2)		+23.6%
Net result	32.2	9.9%	28.3	9.8%	+13.8%

Note: The income statement as presented above provides an overview of the quarterly Adjusted result from operations, which management believes to be a relevant Non-IFRS measurement.
The income statement as presented in the Condensed Consolidated Financial Statements is shown in the appendix.
¹Operating income adjusted for purchase price allocation (PPA) costs related to acquisitions

135

BALANCE SHEET (ASSETS): Q1 2019

Cmarel

Q1 2019 Condensed Consolidated Interim Financial Statements

HIGHLIGHTS

Marel continues to invest in the business to prepare for future growth with the objective to achieve its full potential
Total operating working capital increased EUR 19.7m over the quarter due to increase in inventories and trade receivables
Inventories rising partly due to high volume and increase in fast moving parts to secure shorter delivery times
Trade and other payables (liabilities) rose in line with higher volume

ASSETS

In EUR million	31/03 2019	31/12 2018	Change
Property, plant and equipment	178.1	175.6	+1.4%
Right of use assets	35.3	33.3	+6.0%
Goodwill	642.1	641.3	+0.1%
Intangible assets (excluding goodwill)	265.1	267.0	-0.7%
Trade and other receivables	3.1	3.2	-3.1%
Derivative financial instruments	0.8	1.3	-38.5%
Deferred income tax assets	12.5	10.2	+22.5%
Non-current assets	1,137.0	1,131.9	+0.5%
Inventories	159.1	149.9	+6.1%
Contract assets	37.9	44.0	-13.9%
Trade receivables	147.6	138.8	+6.3%
Other receivables and prepayments	53.3	45.0	+18.4%
Cash and cash equivalents	50.1	56.3	-11.0%
Current assets	448.0	434.0	+3.2%
TOTAL ASSETS	1,585.0	1,565.9	+1.2%

BALANCE SHEET (EQUITY AND LIABILITIES): Q1 2019

marel

Q1 2019 Condensed Consolidated Interim Financial Statements

HIGHLIGHTS

Leverage ratio 2.2x net debt/ EBITDA
Dividend payments and share buyback of EUR 70m in 1Q19
No share buyback since AGM in March 2019
Contract liabilities (production contracts) reflect down payments from customers on projects that will be produced

EQUITY AND LIABILITIES

In EUR million	31/03 2019	31/12 2018	Change
Group equity	523.9	560.9	-6.6%
Borrowings	461.8	429.3	+7.6%
Lease liability	27.7	27.1	+2.2%
Deferred income tax liabilities	57.0	57.3	-0.5%
Provisions	9.5	9.2	+3.3%
Other liabilities	3.0	3.0	-
Derivative financial instruments	-	1.4	-100.0%
Non-current liabilities	559.0	527.3	+6.0%
Contract liabilities	214.5	212.1	+1.1%
Trade and other payables	230.5	217.0	+6.2%
Current income tax liabilities	16.2	9.3	+74.2%
Borrowings	24.8	24.8	-
Lease liability	8.1	6.7	+20.9%
Provisions	8.0	7.8	+2.6%
Current liabilities	502.1	477.7	+5.1%
Total liabilities	1,061.1	1,005.0	+5.6%
TOTAL EQUITY AND LIABILITIES	1,585.0	1,565.9	+1.2%

AI assistant

Marel — Investor Presentation 2019

2191_rns_2019-05-02_5c5032e4-789a-4d10-af42-3421164b472b.pdf

MAREL

DISCLAIMER

Agenda

Marel's journey: from start-up to global leader

CHIEF EXECUTIVE OFFICER

ÁRNI ODDUR

EDUCATION

ACTIVE CONSUMERS ARE LOOKING FOR A BALANCED DIET

HIGHLY ATTRACTIVE, SECULAR GROWTH TRENDS

DATA-DRIVEN FROM DAY ONE

A STRONG TRACK RECORD OF GROWTH

UNIQUE PURE PLAY PROVIDER

FULL-LINE SOLUTIONS PROVIDER...

...ACROSS POULTRY, MEAT AND FISH...

...WITH STANDARD AND MODULAR OFFERING

... AND MARKET LEADING INNOVA SOFTWARE

CLEARLY POSITIONED IN THE VALUE CHAIN

GOOD QUALITY OF EARNINGS

BALANCED BUSINESS MIX

LARGE AND DIVERSIFIED GLOBAL CUSTOMER BASE

GROWTH STRATEGY UNDERPINNED BY CLEAR TARGETS

STRATEGIC INVESTMENT IN INNOVATION

INNOVATION INVESTMENT ~6% OF REVENUES

INNOVATION ACROSS INDUSTRIES

PARTNERSHIP WITH CUSTOMERS

UNIQUE INNOVA SOFTWARE PLATFORM

EMBEDDED SOFTWARE

CONNECTED SOLUTIONS

CONNECTED BUSINESS

KEY TAKEAWAYS

MARKET OVERVIEW AND GROWTH STRATEGY

EXECUTIVE VICE-PRESIDENT OF STRATEGY AND DEVELOPMENT

ÁRNI SIGURDSSON

EDUCATION

SECULAR TRENDS AND IMPLICATIONS

SECULAR TRENDS AND DEMAND IMPLICATIONS

GROWING POPULATION

URBANISATION

RISING MIDDLE CLASS

SUPPLY CHALLENGES

MEAT, POULTRY AND FISH GEOGRAPHICAL TRENDS

FOOD PROCESSING SOLUTIONS MARKET STRUCTURE

POULTRY, MEAT AND FISH PROCESSING SOLUTIONS IN PERSPECTIVE

PRODUCTIVITY AND PROCESS OPTIMISATION

PRODUCT QUALITY AND SUSTAINABILITY

Marel focuses on the advanced and high-end segments of the market

INDUSTRY STRUCTURE

GROWTH STRATEGY AND APPROACH

ORGANIC GROWTH

DIFFERENTIATED APPROACH AND VALUE PROPOSITION

CONTINUOUS INVESTMENTS

RELIABLE MAINTENANCE PARTNER

CONTINUOUS INVESTMENTS

ACQUIRED GROWTH

M&A STRATEGY AND APPROACH

Strengthen product portfolio and full-line offering

Reinforce market presence and build customer relationships

Aligned vision and strategy with cultural fit

FINANCIAL PERFORMANCE

CHIEF FINANCIAL OFFICER

LINDA JÓNSDÓTTIR

EDUCATION

TOP-LINE GROWTH SUPPORTED BY HIGH ORDER INTAKE…

… AND ROBUST ORDER BOOK

WELL DIVERSIFIED REVENUE STREAMS

STEADY OPERATIONAL PERFORMANCE

SIMPLER, SMARTER, FASTER REFOCUSING PROGRAMME

BALANCED BUSINESS MIX

POULTRY

MEAT

FISH

SEGMENT BREAKDOWN - POULTRY

STRONG COMPOUNDED ANNUAL REVENUE GROWTH

CURRENT CAPITAL STRUCTURE AND MATURITY SCHEDULE

SCHULDSCHEIN PROMISSORY NOTE

SYNDICATED LOAN

FINANCIAL TARGETS AND DIVIDEND POLICY

Marel Investor Presentation 2019