Marel — Investor Presentation 2021

Oct 21, 2021

TRANSFORMING FOOD PROCESSING

marel

Q3 2021 Results

Investor meeting

21 October 2021

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TRANSFORMING FOOD PROCESSING

marel

Q3 2021 Results

Investor meeting

Arni Oddur Thordarson
CEO

Linda Jonsdottir
CFO

21 October 2021

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marel

Q3 2021 FINANCIAL HIGHLIGHTS

Strong order momentum, ensuring good customer delivery at higher costs

HIGHLIGHTS

• Strong orders received leading to a healthy order book, strong quarter for poultry and fish while softer for meat
• Revenues up 15.6% YoY, split almost evenly between organic and acquired growth
• Aftermarket represents 40% of total revenues (3Q20: 41%)
• Gross profit at 37.1% in the quarter (3Q20: 39.2%), impacted by higher costs of customer deliveries
• Profitability temporarily hampered by supply chain and logistics challenges, and step-up of operating expenses ahead of the growth curve
• Strategic inventory buildup of EUR 26.3m tying up capital and cash flow in Q3

REVENUES
EUR m

ORDERS RECEIVED
EUR m

ORDER BOOK³
EUR m

EBIT¹ MARGIN
%

FREE CASH FLOW²
EUR m

LEVERAGE
Net debt/EBITDA

Note: ¹ Operating income adjusted for PPA related costs, including depreciation and amortization, and beginning in Q4 2020 adjusted for acquisition related costs. ² Free cash flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets. ³ Including acquired order book of Curio and PMJ of EUR 4.2m in 1Q21.

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9M 2021 FINANCIAL HIGHLIGHTS

marel

Orders received up 20% year-on-year, three sequential quarters of strong orders in Q1-Q3 2021, revenues of EUR 993m whereby 40% from solid recurring aftermarket revenues

HIGHLIGHTS

• Orders received 9M21 up 20% YoY and pipeline building up, reflecting trustworthy reputation and long-standing customer relationships
• Order book was EUR 527.8m (9M20: 434.3m), representing 39.5% of 12-month trailing revenues
• Book-to-bill ratio of 1.09, compared to an average of 1.04 in the past four quarters (3Q20-2Q21)
• Strong cash flow in 2021 supporting significant strategic inventory buildup of EUR 51.9m in 9M21

REVENUES
EUR m

ORDERS RECEIVED
EUR m

ORDER BOOK
EUR m

EBIT¹ MARGIN
%

FREE CASH FLOW²
EUR m

LEVERAGE
Net debt/EBITDA

Note: ¹ Operating income adjusted for PPA related costs, including depreciation and amortization, and beginning in Q4 2020 adjusted for acquisition related costs.

² Free cash flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets.

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STRONG ORDERS RECEIVED IN 9M21

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Pipeline building up across all industries and processing stages with strong momentum in sales of standard equipment and lines, with retail and food service market picking up

• Very strong first nine months of the year with combined orders received of EUR 1,101.3m, up 20% YoY
• Orders received in 3Q21 of EUR 360.6m, driven by strong orders in fish and poultry, while softer for the meat industry
• The pipeline for large greenfields and modernization projects is building up in all industries across all processing stages
• M&A continues to stimulate organic growth, and Marel secured orders in 3Q21 where a broader product portfolio following recent acquisitions of TREIF, Curio and PMJ were key
• A record quarter in spare part deliveries, full focus on strengthening the spare parts delivery model and shortening lead times to customers

REVENUES AND ORDER EVOLUTION

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BALANCED REVENUE MIX

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

POULTRY

EUR 155.4m revenues 3Q21
13.7% EBIT¹ margin 3Q21
14.1% EBIT¹ margin 9M21

• Marel Poultry secured a major order from Aurora, third biggest food processing company in LATAM, with focus on modernization, optimization and digitalization to improve end-to-end traceability, nutrition and product quality.
• Orders received for Marel Poultry were strong in 2Q21 and 3Q21, supporting stronger volume going forward with a good product mix. Pipeline remains strong.
• EBIT in 3Q21 was EUR 21.3m (3Q20: 33.3m) and the EBIT margin was 13.7% (3Q20: 21.1%).
• On the back of a stronger order book and pipeline, volume will continue to increase with foreseen more favorable mix, resulting in higher operating profits.

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 124.5m revenues 3Q21
8.6% EBIT¹ margin 3Q21
9.7% EBIT¹ margin 9M21

• Acquisitions stimulating organic growth through cross- and upselling, and accelerating the innovation roadmap by transferring technology across industries.
• Orders received in 3Q21 for Marel Meat were softer than in previous quarters. Significant volatility in meat prices in different geographies changed the composition of orders and affected timing of investment decisions. The need for automation has never been clearer and the pipeline shows good opportunities in all regions and expectation of higher conversion of pipeline into orders in coming quarters.
• EBIT in 3Q21 was EUR 10.7m (3Q20: 7.6m) and EBIT margin of 8.6% (3Q20: 8.4%), colored by lower volume QoQ (2Q21: 17.0m, 12.8%).
• Management continues to target medium and long-term EBIT¹ margin expansion for Marel Meat, and management has accelerated market coverage and operational improvement initiatives.

Full-line offering with focus on strong product development, increased standardization, modularization and market penetration and further cross- and upselling

FISH

EUR 37.7m revenues 3Q21
6.6% EBIT¹ margin 3Q21
6.1% EBIT¹ margin 9M21

• Agreement to acquire Valka announced in 3Q21, pending anti-trust and other customary closing conditions. Curio acquisition consolidated as of 4 Jan 2021. Salmon primary processing offering solidified through the strategic partnership with Stranda and 40% of their shares.
• Innovation roadmap accelerated to close certain application gaps to reach full-line offering.
• Orders received in 3Q21 for Marel Fish were solid. Strong pipeline for both small and medium-sized projects. 4Q21 started on a strong note in the fish industry with key large projects secured.
• EBIT in 3Q21 was EUR 2.5m (3Q20: 2.5m) and the EBIT margin was 6.6% (3Q20: 7.6%), higher volume is needed to deliver sufficient margin improvement.
• Management continues to target medium and long-term EBIT¹ margin expansion for Marel Fish.

Full-line offering to the wild whitefish industry since 2020. Strong line offering with opportunities to improve breadth through innovation and / or M&A to reach full line offering across whitefish and salmon

Note: All financial numbers relate to the Condensed Consolidated Interim Financial Statements Q3 2021. Other segment accounts for around 4% of the revenues in Q3 2021.

¹ Operating income adjusted for PPA related costs, including depreciation and amortization, and beginning in Q4 2020 adjusted for acquisition related costs.

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Cmarel

Financial performance

Linda Jonsdottir, Chief Financial Officer

21 October 2021

Cmarel

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morel

GOOD QUALITY OF EARNINGS

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

REVENUES BY INDUSTRY %
Source: https://www.industrydocuments.ucsf.edu/docs/nyj0228

REVENUES BY GEOGRAPHY %
Source: https://www.industrydocuments.ucsf.edu/docs/nyj0228

REVENUES BY BUSINESS MIX %
Source: https://www.industrydocuments.ucsf.edu/docs/nyj0228

Note: 1 Equipment revenues are comprised of revenues from greenfield and large projects, standard equipment and modernization equipment, and related installations.

2 Aftermarket revenues are comprised of revenues from maintenance, service, and spare parts.

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OPERATIONAL PERFORMANCE

Continued margin pressures due to supply chain and logistics costs of delivering the right quality at the right time to customers

• Gross profit at 37.1% (3Q20: 39.2%), below the mid-term target of 40% by YE23
• Margin impacted by increased costs due to supply chain and logistics
• Imbalance between supply and demand for electronic components and raw materials, resulting in an increase in prices and delivery times

• Price increases of 4-6% on new orders implemented in 3Q21 that will partly offset increased costs

• Operating costs

• SG&A at 20.3% (3Q20: 18.2%), compared to mid-term YE23 target of 18.0%

• R&D at 6.0% (3Q20: 5.6%), compared to mid-term YE23 target of 6.0%

• Results not adjusted for non-recurring costs, except for PPA and acquisition related costs

Note: ¹ Adjusted for PPA costs related to acquisitions from 2016 onwards and refocusing costs in 2014 and 2015 relating to "Simpler, Smarter, Faster" program. PPA refers to amortization of acquisition related (in)tangible assets. Beginning in Q4 2020 also adjusted for acquisition related costs. ² Adjusted EBIT in Q4 2015 is not adjusted for EUR 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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STRONG ORDER BOOK

marel

A strong order book of EUR 528 million, representing 39.5% of 12-month trailing revenues

• Book-to-bill 1.09x in 3Q21, compared to an average of 1.04x in the past four quarters (3Q20-2Q21)
• Order book consists of orders that have been signed and financially secured
• Vast majority of the order book are greenfield projects while spare parts and standard equipment run faster through the system
• Low customer concentration with no single customer accounting for >5% of total revenues on an annual basis

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 Including acquired order book of MAJA of EUR 2m. ⁴ Including acquired order book of TREIF of EUR 5m in 4Q20. ⁵ Including acquired order book of Curio and PMJ of EUR 4.2m.

10

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EARNINGS PER SHARE

marel

Marel's management targets Earnings per Share to grow faster than revenues

• Cash flow reinvested in innovation, infrastructure and global reach to sustain growth and value creation
• Basic earnings per share were EUR 3.10 cents (3Q20: 3.93 cents) and earnings per share trailing twelve months was EUR 12.93 cents in 3Q21 (3Q20: 11.08 cents)

EARNINGS PER SHARE (EPS)

Trailing twelve months, euro cents

Note: ¹ An offering of 100 million shares issued and sold in connection with the dual listing in 2Q19, increasing the total share capital to 771 million shares.

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INCOME STATEMENT: Q3 2021

marel

Revenues in Q3 2021 were EUR 332 million, gross profit was EUR 123 million or 37.1% of revenues, and the adjusted EBIT was EUR 36.0 million or 10.8%

In EUR million	Q3 2021	Of revenues	Q3 2020	Of revenues	Δ
Revenues	331.9		287.2		+15.6%
Cost of sales	(208.7)		(174.7)		+19.5%
Gross profit	123.2	37.1%	112.5	39.2%	+9.5%
Selling and marketing expenses	(44.6)	13.4%	(31.1)	10.8%	+ 43.4%
General and administrative expenses	(22.8)	6.9%	(21.3)	7.4%	+7.0%
Research and development expenses	(19.8)	6.0%	(16.0)	5.6%	+23.8%
Adjusted result from operations¹	36.0	10.8%	44.1	15.4%	-18.4%
Non-IFRS adjustments	(4.6)		(2.7)		+70.4%
Result from operations	31.4	9.5%	41.4	14.4%	-24.2%
Net finance costs	(2.1)		(3.2)		-34.4%
Share of result of associates	0.0		(0.1)		-100.0%
Result before income tax	29.3		38.1		-23.1%
Income tax	(6.1)		(8.7)		-29.9%
Net result	23.2	7.0%	29.4	10.2%	-21.1%

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.
¹ Operating income adjusted for PPA related costs, including depreciation and amortization, and beginning in Q4 2020 adjusted for acquisition related costs.

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marel

MID-TERM TARGETS

Marel is committed to the mid-term targets to achieve gross profit of 40%, SG&A of 18% and maintain the innovation investment at the 6% strategic level by year-end 2023

In EUR million	Q3 2021	Of revenues	Mid-term target
Revenues	331.9
Cost of sales	(208.7)
Gross profit	123.2	37.1%	→ Gross profit		~40%
Selling and marketing expenses	(44.6)	13.4%	20.3% → SG&A		~18%
General and administrative expenses	(22.8)	6.9%
Research and development expenses	(19.8)	6.0%	→ R&D		~6%
Adjusted result from operations	36.0	10.8%
Non-IFRS adjustments	(4.6)
Result from operations	31.4	9.5%	GROSS PROFIT %	39.2	37.1
Net finance costs	(2.1)
Share of result of associates	0.0
Result before income tax	29.3
Income tax	(6.1)
Net result	23.2	7.0%	ADJ. EBIT %	15.4	10.8
			SG&A %	18.2	20.3
				3Q20	3Q21

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.
¹ Operating income adjusted for PPA related costs, including depreciation and amortization, and beginning in Q4 2020 adjusted for acquisition related costs.

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BALANCE SHEET: ASSETS

marel

Q3 2021 Condensed Consolidated Interim Financial Statements

• Safety stock of spare and production parts systematically built up to serve customer demand and ensure timely delivery since onset of pandemic, for a total of EUR 26.3m in 3Q21 and EUR 51.9m in 9M21
• Supply chain issues have escalated in past few months, whereby there are still some delays in critical parts impacting operations
• Strong balance sheet used to mitigate supply chain challenges
• Contract assets increased due to timing of production and shipment of larger orders, impact from missing components

ASSETS

In EUR million	30/09 2021	31/12 2020	Δ
Property, plant and equipment	208.8	196.7	+6.2%
Right of use assets	47.2	42.7	+10.5%
Goodwill	687.0	678.8	+1.2%
Intangible assets	338.1	331.0	+2.1%
Investments in associates	11.3	17.6	-35.8%
Other receivables	-	2.1	-100.0%
Deferred income tax assets	14.8	13.3	+11.3%
Non-current assets	1,307.2	1,282.2	+1.9%
Inventories	251.8	199.9	+26.0%
Contract assets	57.8	46.1	+25.4%
Trade receivables	153.8	151.3	+1.7%
Assets held for sale	-	1.8	-100.0%
Derivative financial instruments	0.7	1.9	-63.2%
Other receivables and prepayments	51.1	53.1	-3.8%
Cash and cash equivalents	66.2	78.6	-15.8%
Current assets	581.4	532.7	+9.1%
TOTAL ASSETS	1,888.6	1,814.9	+4.1%

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BALANCE SHEET: EQUITY AND LIABILITIES

marel

Q3 2021 Condensed Consolidated Interim Financial Statements

• Contract liabilities increased in line with a higher order book, Marel receives down payments to financially secure orders which has a positive impact on working capital
• Committed liquidity of EUR 674.3m at the end of Q3, including fully committed all-senior funding in place until 2025
• Leverage ratio at 0.9x, well below the targeted capital structure of 2-3x net debt / EBITDA
• Financial strength to support strategic actions in the ongoing industry consolidation wave, in line with the company's 2017-2026 growth strategy
• Option to acquire remaining 50.0% of Curio shares was recorded in 1Q21 as a liability in non-current other payables

EQUITY AND LIABILITIES

In EUR million	30/09 2021	31/12 2020	Δ
Group Equity	981.4	958.7	+2.4%
Borrowings	204.8	240.2	-14.7%
Lease liabilities	37.7	33.6	+12.2%
Deferred income tax liabilities	85.0	84.9	+0.1%
Provisions	4.1	4.1	-
Other payables	16.2	1.1	+1,372.7%
Derivative financial instruments	1.9	3.7	-48.6%
Non-current liabilities	349.7	367.6	-4.9%
Contract liabilities	286.8	236.6	+21.2%
Trade and other payables	238.5	222.7	+7.1%
Current income tax liabilities	12.4	8.8	+40.9%
Lease liabilities	10.3	10.0	+3.0%
Provisions	9.5	10.5	-9.5%
Current liabilities	557.5	488.6	+14.1%
Total liabilities	907.2	856.2	+6.0%
Total equity and liabilities	1,888.6	1,814.9	+4.1%

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CASH FLOW BRIDGE

marel

Strategic inventory buildup tying up capital and cash flow in Q3 2021

• Strong cash conversion supports continued investment in infrastructure, innovation and 2017-2026 growth strategy
• Working capital impacted by inventory buildup during the quarter to ensure timely delivery of equipment and spare parts to customers, using the strong balance sheet to minimize operational issues
• Operational cash flow was EUR 19.7m in the quarter (3Q20: 54.1m) and EUR 157.8m 9M21 (9M20: 178.7m)
• Free cash flow was EUR 0.1m in the quarter (3Q20: 36.6m) and EUR 100.2m 9M21 (9M20: 122.8m)

Note: ¹ Free cash flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets. ² Currency effect, change in capitalized finance charges, movement in lease liabilities, dividends paid and sale of treasury shares and options exercised.

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KEY PERFORMANCE METRICS

marel

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)

EPS expected to grow faster than revenues

• In the period 2017-2026, Marel's management expects basic earnings per share to grow faster than revenues
• Focus on margin expansion in Marel Meat and Marel Fish and overall operational improvement and value creation

Healthy cash flow

• Operational cash flow in the quarter before inventory buildup at healthy level
• Free cash flow at EUR 0.1m in the quarter (3Q20: EUR 36.6m), strategic inventory buildup tying up capital and cash flow in 3Q21
• Free cash flow 9M21 is EUR 100.2m (9M20: 122.8m), significant inventory buildup over the same period of EUR 51.9m

Capacity for further growth

• Net debt / EBITDA 0.9x at end of Q3 2021
• Leverage well below the targeted capital structure of 2-3x net debt / EBITDA
• Financial strength will facilitate future strategic moves in line with the company's growth strategy

Note: ¹ Basic earnings per share, trailing twelve months. ² Free cash flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets.

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cmarel

Business and outlook

Arni Oddur Thordarson, Chief Executive Officer

21 October 2021

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marel

AUTOMATION, A DRIVING FORCE

With food processing becoming more complex due to labor shortages and supply chain challenges processors are increasingly looking to digitize and automate to win in future market

LABOR SCARCITY

ROBOTICS

"...we will need to continue to invest in automation because we don't believe the labor force is going to increase significantly in the coming future."
Pilgrim's Pride, Q2 2021

"...we are accelerating investments in automation and advanced technologies to make team members' jobs easier."
Tyson Foods, Q3 2021

DIGITALIZATION

TRACEABILITY

MODULAR LINE SOLUTIONS

CHANNEL FLEXIBILITY

"...59 percent of companies in the grocery, food and beverage industries are increasingly open to invest in automation to survive changing market conditions."
The 2020 Honeywell Intelligrated Automation Investment Study

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STIMULATING ORGANIC GROWTH AND ACCELERATING INNOVATION

Following recent acquisitions, Marel has secured important orders where a broader product portfolio and worldwide sales coverage were key to successful cross- and upselling

POULTRY

PMJ, a Dutch duck and goose processing solutions provider

• PMJ added duck market as a third pillar within poultry processing alongside broilers and turkey
• Aftermarket potential on acquired installed base
• Acquisition of PMJ concluded in Jan 2021, integration proceeding well with step up of sales coverage and technical capabilities

MEAT

TREIF, a leading German food cutting technology provider

• Strengthened Marel's full-line offering and increased standard equipment sales
• Access to adjacent industries and new retail customer channels
• Aftermarket potential on installed base
• Acquisition concluded in Oct 2020, integration ongoing with main focus on sales and service coverage

FISH

Curio, an Icelandic whitefish processing solutions provider

• Marel is now a step closer becoming a full-line solution provider to the global fish industry
• Aftermarket potential on acquired installed base
• Curio acquisition consolidated as of 4 Jan 2021, integration ongoing with many wins in full-line offering

Accelerates innovation roadmap and transfer of technology

PROJECT	EXAMPLE	PROJECT	EXAMPLE	PROJECT	EXAMPLE
Ulybino, duck processing in Siberia, Russia		Vion, case-ready plant in Altenburg, Germany		BRIM, a new whitefish plant in Reykjavik, Iceland
A joint success project for the combined PMJ and Marel Poultry team where technical and sales expertise were the defining characteristics		First integrated project together with TREIF and the Marel Meat team. Initially only TREIF was involved with the project, but Marel was able to add more capabilities to the overall project		The most advanced whitefish processing facility in the world, where primary capabilities from Curio with Marel supplying other processing solutions and software
Several other examples from the UK market showcasing the benefits from Marel global reach combined with the integrated PMJ and Marel's full-line solutions for the duck market		Proof of concept that cross- and upselling can work in both ways as Marel sales team is as well penetrating several TREIF cutting solutions to Marel's customer base in US and Asia		Several other examples of secured sales into Americas and Europe where primary processing capabilities from Curio were added to the full-line solutions from Marel

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marel

BELL & EVAN'S NEW PLANT ON TRACK

Bell & Evan's state-of-the-art greenfield poultry processing plant is fully on track to open in November in Fredericksburg, Pennsylvania, despite challenges brought on by the pandemic

• Milestone project in Marel's history, signed in January 2020
• Will be among the most technologically advanced plants in the world, equipped throughout with Marel's high-tech full-line solutions and software
• Highly automated plant that raises animal wellbeing to the highest standard within the industry
• Important future reference plant for Marel in the US market
• Close partnership founded on shared values and commitment to sustainability, with aim to transform the industry

We're Transforming THE POULTRY INDUSTRY

Our new, state-of-the-art poultry processing plant in Fredericksburg, Pennsylvania will raise the standard for food processing.

WATCH OUR PROGRESS REAL-TIME

New plant will be operational in:

Read more

Source: Bell & Evan's website

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Capital Markets Day - the 360° mini-series

Join our series of virtual Capital Markets Day events and explore how Marel delivers growth - globally, digitally, sustainably.

Register on marel.com/cmd360

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marel

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

MID-TERM TARGETS BY YE23		2017-2026 TARGETS		FY17	FY18	FY19	FY20	9M21
Gross profit	40%	Revenue growth¹	12%	Organic	4.9%	12.5%	5.4%	-5.4%
				Acquired	2.2%	2.9%	1.8%	1.8%
				Total	7.1%	15.4%	7.2%	-3.6%
				CAGR 2017-3Q21	7.0%
Innovation investment	6%	Innovation investment	~6% of revenues	5.6%	6.2%	6.4%	5.6%	6.1%
Earnings per share (TTM)	18%	Earnings per share (TTM)	EPS to grow faster than revenues	13.7	18.0	15.3	13.6	12.9
SG&A	18%	Leverage	Net debt / EBITDA 2-3x	1.9x	2.0x	0.4x	1.0x	0.9x
Adj.EBIT	16%	Dividend policy	20-40% of net result	30%	30%	40%	40%	-

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.

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marel

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

MID-TERM TARGETS BY YE23		2017-2026 TARGETS
Gross profit	40%	Revenue growth¹	12%	Market conditions have been challenging due to geopolitical uncertainty and the ongoing COVID-19 pandemic. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix. At the moment it is not known what the full economic impact of COVID-19 will have on Marel. Marel is committed to achieve its mid- and long term growth targets. In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions. Marel's management expects average annual market growth of 4-6% in the long term. 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 acquisitions.
Innovation investment	6%	Innovation investment	~6% of revenues	To support new product development and ensure continued competitiveness of existing product offering.
SGA	18%	Earnings per share	EPS to grow faster than revenues	Marel's management targets Earnings per Share to grow faster than revenues.
Adj.EBIT	16%	Leverage	Net debt / EBITDA 2-3x	The leverage ratio is targeted to be in line with the targeted capital structure of the company.
		Dividend policy	20-40% of net result	Dividend or share buyback targeted at 20-40% of net result. Excess capital used to stimulate growth and value creation, as well as payment of dividends / funding share buybacks.

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.

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TRANSFORMING FOOD PROCESSING

marel

Q&A

Arni Oddur Thordarson
Chief Executive Officer

Linda Jonsdottir
Chief Financial Officer

21 October 2021

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imarel

QUESTIONS?

WE'RE HERE TO HELP

• Tinna Molphy
  Director of Investor Relations

• Marino Thor Jakobsson
  Investor Relations

• Drofn Farestveit
  Investor Relations

+354 563 8001

ir@marel.com

@Marel_IR / $MAREL

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DISCLAIMER

marel

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management's current estimates and expectations, forward-looking statements are inherently uncertain.

We therefore caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements.

All forward-looking statements are qualified in their entirety by this cautionary statement.

MARKET SHARE DATA

Statements regarding market share, including those regarding Marel's competitive position, are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates.

Where information is not yet available to Marel, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.

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TRANSFORMING FOOD PROCESSING

marel

Thank you