Scandi Standard

Earnings Release • Oct 28, 2022

"We have together with our suppliers and customers shown in 2022 that we have the necessary flexibility to implement measures and therefore handle any further inflation. We are now preparing for a period of high uncertainty in terms of inflation and changing consumer behaviour".

Jonas Tunestål, managing director and CEO

Strong recovery but continued market uncertainty

July – September 2022

• Net sales amounted to MSEK 3,202 (2,632) in the third quarter of 2022. At constant exchange rates net sales increased by 18 percent.
• Operating income (EBIT) increased to MSEK 112 (30), corresponding to a margin of 3.5 (1.1) percent.
• Income for the period amounted to MSEK 66 (4). Earnings per share amounted to SEK 0.99 (0.04).
• Operating cash flow was MSEK 248 (112).

January – September 2022

• Net sales amounted to MSEK 9,050 (7,666) in the first nine months of 2022. At constant exchange rates net sales increased by 15 percent.
• Operating income (EBIT) decreased to MSEK 191 (192), corresponding to a margin of 2.1 (2.5) percent.
• Income for the period amounted to MSEK 83 (99). Earnings per share amounted to SEK 1.17 (1.49)
• Operating cash flow was MSEK 389 (278).

Significant events in the quarter

▪ At an extraordinary general meeting on August 22, Paulo Gaspar was elected as new board member. Paulo Gaspar represents Grupo Lusiaves, which is Scandi Standard's second largest shareholder.

Key metrics2)

MSEK	Q3 2022	Q3 2021	Δ	9M 2022	9M 2021	Δ	R12M	2021
Net sales	3,202	2,632	22%	9,050	7,666	18%	11,485	10,101
EBITDA	212	126	68%	520	474	10%	645	598
Operating income (EBIT)	112	30	-	191	192	-1%	221	222
EBITDA margin %	6.6%	4.8%	1.8ppt	5.7%	6.2%	-0.4ppt	5.6%	5.9%
EBIT margin %	3.5%	1.1%	2.4ppt	2.1%	2.5%	-0.4ppt	1.9%	2.2%
Non-comparable items1)	-	-13	-100%	-	-17	-100%	26	9
Adjusted EBITDA1)	212	139	52%	520	491	6%	618	589
Adjusted operating income (Adj. EBIT)1)	112	43	163%	191	210	-9%	194	213
Adjusted EBITDA margin1) %	6.6%	5.3%	1.3ppt	5.7%	6.4%	-0.7ppt	5.4%	5.8%
Adjusted EBIT margin1) %	3.5%	1.6%	1.9ppt	2.1%	2.7%	-0.6ppt	1.7%	2.1%
Income after finance net	84	10	-	119	132	-10%	126	140
Income for the period	66	4	-	83	99	-16%	88	103
Earnings per share, SEK	0.99	0.04	-	1.17	1.49	-22%	1.27	1.60
Return on capital employed %	5.2%	5.8%	-0.5ppt	5.2%	5.8%	-0.5ppt	5.2%	5.2%
Return on equity %	4.0%	6.3%	-2.3ppt	4.0%	6.3%	-2.3ppt	4.0%	5.5%
Operating cash flow	248	112	121%	389	278	40%	457	347
Net interest-bearing debt	1,733	1,891	-8%	1,733	1,891	-8%	1,822	1,980
NIBD/Adj. EBITDA	2.8	2.8	2%	2.8	2.8	2%	2.9	3.4
Lost time injuries (LTI) per million hours worked	27.8	40.2	-31%	28.3	37.8	-25%	30.6	39.2
Feed efficiency (kg feed/live weight)	1.50	1.51	-1%	1.50	1.52	-1%	1.51	1.52

1) Restated non-comparable items. see note 6. 2) For a definition of alternative performance measures see page 22

CEO Comments

Scandi Standard has delivered a result for the third quarter of 2022 in which we have largely offset cost inflation through raised sales prices and strong earnings in the Ready-to-eat segment. We also demonstrated that we can rapidly implement measures to manage a changing market. Despite a temporary reduction of slaughter volume, net sales increased 22 percent to MSEK 3,202 (2,632), driven by price increases, and I am pleased to be able to report operating income of MSEK 112 (30) for the quarter.

Strong long-term demand

Rising food prices result in consumers changing their purchasing habits and the current developments we estimate that consumer price sensitivity will increase.

The production cycle for chicken is significantly shorter than, for example, beef and pork, which has contributed to Scandi Standard being able to compensate for inflation by relatively quickly adapting our production volume to market demand. With distinct position in strong consolidated markets, our speedy response has had a real impact on balancing supply and demand. At the same time, long lead times in beef and pork production have led to surpluses and price pressure for these proteins, which has indirectly impacted chicken consumption. When the production of beef and pork has balanced the volumes to market demand, we expect to have healthy prerequisites for profitable volume development for chicken products.

After managing the first wave of inflation that impacted the business environment in 2022, we are now preparing for energy, packaging and logistics costs to continue to rise. Our assessment is that demand for chicken will benefit in relation to other proteins in such a market climate.

Growth in Ready-to-cook and continued positive trend for Readyto-eat

The Ready-to-cook segment reported net sales of MSEK 2,265 (1,942), corresponding to growth of 17 percent, and operating income increased to MSEK 34 (7). The management in all markets has worked hard to manage increased inflation in a long-term and sustainable manner. The positive effects of the work have been offset partly by increased imports in some of our home markets.

The situation in Denmark remains challenging and we posted a loss of MSEK -50 (-60) in the Ready-to-cook segment. For this reason, operational changes are being implemented on an ongoing basis. Scandi Standard's total operations in Denmark, including Ready-to-eat and Ingredients, has once again posted a quarter with positive earnings.

Scandi Standard's other major segment Ready-to-eat has continued to develop positively. Net sales increased 36 percent to MSEK 802 (589) and operating income increased 54 percent to MSEK 70 (46). To enable continued growth, an expansion of the capacity of the Danish factory in Farre is planned during the fourth quarter of 2022. A decision has been made to start an additional expansion, which will increase production capacity in Farre by 30 percent by 2024.

By continuing to invest in our rapidly growing and profitable Ready-toeat segment, we create added value for our protein as we take advantage of larger parts of the chicken while at the same time moving higher in the value chain. This is one of Scandi Standard's strategic focus areas and one of the keys of developing Scandi Standard's profitability for the years ahead.

1) Pro forma including Manor Farm

2) Recalculated for IFRS16

Climate labelling steers conscious choices

Creating a future proof, sustainable business is one of Scandi Standard's strategic focus areas. It is therefore an important step that Scandi Standard launches climate labelling in all of its home markets. With help of the specialised and independent organisation, the Carbon Trust, we have calculated and certified the carbon footprint across the entire value chain of 282 products, all the way from farm to fork. The calculations have been certified in order to provide us with a good foundation to start from to achieve our climate targets that are aligned with the 1.5 °C goal of the Paris Agreement and to have a good foundation for our efforts to increase transparency as well as to guide consumers to more conscious choices.

Several scientific studies show that chicken is the animal protein that impacts the climate the least per kilo, but we also need to continue to reduce our carbon footprint. With these calculations as a basis, we can work more systematically with our climate efforts.

The sustainability indicators, use of antibiotics and foot pad condition, are largely unchanged in comparison with the preceding quarter, which is a decline compared with the preceding year, primarily driven by Ireland. A number of measures have been taken to improve the situation, but long lead times limit the effect in the quarter. We also launched an initiative to increase transparency upstream with our suppliers, in the areas of animal welfare, climate and the environment.

Strong cash flow and stable position

Cash flow was strong during the quarter, driven by a profit improvements, low investments and low working capital. Net debt declined in the quarter by MSEK 216 to MSEK 1,733. To date this year, the company's capital expenditures has been MSEK 143 of an expected MSEK 300 for 2022.

We have together with our suppliers and customers shown in 2022 that we have the necessary flexibility to implement measures and therefore handle any further inflation. We are now preparing for a period of high uncertainty in terms of inflation and changing consumer behaviour. I can remind you that the fourth quarter is a weaker period for Scandi Standard in terms of earnings due to seasonal variations.

In the longer term, there is a considerable potential for increasing the value per bird processed. It will be material for Scandi Standard to establish a long-term stable earnings level above the margins reported between 2015 and 2020. The transition requires a strong focus on the right culture, governance and leadership, increased efficiency throughout the value chain, and innovative development of our product portfolio. At the same time, we will create a fundamentally sustainable business in the long term. The work within these strategic focus areas is ongoing for all of Scandi Standard, but change takes time. After spending even more time in the business and met even more of Scandi Standard's employees, I am convinced that together, we can look forward to a positive and value-creating journey ahead.

Stockholm, 28 October 2022 Jonas Tunestål, Managing director and CEO

Group results, financial position and cash flow July – September 2022

Net sales amounted to MSEK 3,202 (2,632). At constant exchange rates, net sales increased by 18 percent. Net Sales to the Retail sales channel increased by 16 percent in net sales compared to the corresponding quarter previous year driven by price increases while volume decreased. Net sales to Foodservice sales channel increased by 38 in net sales while export sales increased with 24 percent in the quarter in line with rising prices in the international market.

Operating income (EBIT) for the Group amounted to MSEK 112 (30), corresponding to an operating margin (EBIT margin) of 3.5 (1.1) percent. No non-comparable items was reported in the third quarter.

The higher result was driven by improved results in all segments mainly due to price increases. Ready-to-cook Denmark still weighs on the result, where the challenging macro situation and high energy prices have a strong impact.

The Ready-to-eat business contributed positively to the results with strong growth and good operating result. Other business also improved compared to the previous year, where ingredients have been positively affected by an improved price picture.

Finance net for the Group amounted to MSEK -28 (-20). The increase is mainly driven by increased interest expenses for interest-bearing liabilities of MSEK -15 (-9). In addition the finance net consists of interest expenses for leasing of MSEK -3 (-3), and currency effects/other items of MSEK -11 (-7).

Tax expenses for the Group amounted to MSEK -18 (-6) corresponding to an effective tax rate of approximately 21 (62) percent. which is in line with expectations given the mix of tax rates between the different countries.

Income for the period for the Group increased to MSEK 66 (4). Earnings per share were SEK 0.99 (0.04).

Net interest-bearing debt (NIBD) for the Group was MSEK 1,733, a decrease by MSEK 216 from 30 June 2022. Operating cash flow in the quarter amounted to MSEK 248 (112) positively affected by improved EBITDA and positive change in working capital driven by improved management of accounts receivable but also partly linked to positive timing effect.

The investment rate has increased somewhat after a period of low investment levels, mainly driven by capacity investments in RTE and new ERP system. Paid financial items have increased driven by higher interest rates.

Total equity attributable to the owners of the parent company as of September 30, 2022, amounted to MSEK 2,196 (1,917). The equity to assets ratio amounted to 31.5 (29.1) percent. Return on equity was 4.0 (6.3) percent.

The financial target for the Group's adjusted EBITDA margin is to exceed 10 percent in the medium term. During the last twelve-month period, the company's adjusted ITD margin amounted to 5.4 percent, which is below the year 2021 level, and below the company's target.

The financial target for the Group´s net interest-bearing debt in relation to adjusted EBITDA is 2.0-2.5x. The outcome as of September 30, 2022, was 2.8x (2.8x), which was above the target range for the Group but an improvement compared with the second quarter 2022.

Net Sales and Operating Income (EBIT)2)

MSEK	Q3 2022	Q3 2021	R12M	2021
Net sales	3,202	2,632	11,485	10.101
EBITDA	212	126	645	598
Depreciation	-87	-84	-375	-328
EBITA	125	42	270	270
Amortisation	-13	-12	-51	-50
EBIT2)	112	30	221	222
EBITDA margin, %	6.6%	4.8%	5.6%	5.9%
EBITA margin, %	3.9%	1.6%	2.4%	2.7%
EBIT margin, %	3.5%	1.1%	1.9%	2.2%
Non-comparable items1)	-	-13	26	9
Adj. EBITDA1)	212	139	618	589
Adj. EBIT1)	112	43	194	213
Adj. EBITDA margin, %1)	6.6%	5.3%	5.4%	5.8%
Adj. EBIT margin, %1)	3.5%	1.6%	1.7%	2.1%
Chicken processed (tonne lw) 3)	89.338	102.736	364.622	393.369
EBIT/kg	1.3	0.3	0.6	0.6

1) Restated non-comparable items. see note 6

2) For specific explanatory items, see note 7.

3). Live Weight, tonnes

Finance net and tax expenses

MSEK	Q3 2022	Q3 2021	R12M	2021
Finance income	1	0	2	2
Finance expenses	-29	-20	-97	-83
Finance net	-28	-20	-94	-82
Income after finance net	84	10	126	140
Income tax expenses	-18	-6	-39	-37
Income tax expenses %	-21%	-62%	-31%	-26%
Income for the period	66	4	88	103
Earnings per share, SEK	0.99	0.04	1.27	1.60

Net-interest-bearing debt (NIBD)

MSEK	Q3 2022	Q3 2021	R12M	2021
Opening balance NIBD	1,949	1,967	1,891	1.933
EBITDA	212	126	645	598
Change in working capital	115	31	126	162
Net capital expenditure	-67	-31	-211	-306
Other operating items	-12	-14	-103	-108
Operating cash flow	248	112	457	347
Paid finance items, net	-27	-16	-81	-69
Paid tax	-7	-5	-54	-56
Dividend	0	-	0	-81
Business combinations	-	-23	-136	-171
Other items1)	3	7	-28	-17
Decrease (+) / increase (-) NIBD	216	76	158	-47
Closing balance NIBD	1,733	1,891	1,733	1.980

1) Other items mainly consist of effects from changes in foreign exchange rates and net change of leasing assets

Financial targets	Q3 2022	Q3 2021	R12M	2021	Target
Adj. EBITDA margin, %	6.6%	5.3%	5.4%	5.8%	10%
NIBD/Adj. EBITDA	2,8x	2,8x	2,9x	3,4x	2.0-2.5x

1) Target for Net sales and dividend is measured and evaluated on annual basis

Overview – segment consolidation and KPIs

	Ready-to-cook 1)		Ready-to-eat 2)		Other 3)		Total
MSEK unless stated otherwise	Q3 2022	Q3 2021	Q3 2022	Q3 2021	Q3 2022	Q3 2021	Q3 2022	Q3 2021
Net sales	2,265	1,942	802	589	135	102	3,202	2,632
EBITDA	116	88	83	58	14	-20	212	126
Depreciation	-69	-69	-12	-12	-5	-4	-87	-84
EBITA	46	20	70	46	8	-24	125	42
Amortisation	-13	-12	0	0	0	0	-13	-12
EBIT	34	7	70	46	8	-24	112	30
EBITDA margin, %	5.1%	4.5%	10.3%	9.8%	10.2%	-19.9%	6.6%	4.8%
EBITA margin, %	2.1%	1.0%	8.8%	7.8%	6.2%	-23.4%	3.9%	1.6%
EBIT margin, %	1.5%	0.4%	8.8%	7.8%	6.1%	-23.3%	3.5%	1.1%
Non-comparable items 4)	-	-	-	-	-	-13	-	-13
Adj. EBITDA4)	116	88	83	58	14	-7	212	139
Adj. EBIT4)	34	7	70	46	8	-11	112	43
Adj. EBITDA margin, %4)	5.1%	4.5%	10.3%	9.8%	10.2%	-6.9%	6.6%	5.3%
Adj. EBIT margin, %4)	1.5%	0.4%	8.8%	7.8%	6.1%	-10.4%	3.5%	1.6%
Capital employed							4,265	4,243
Return on capital employed							5.2%	5.8%
Chicken processed (LW) 5)							89,338	102,736
Net sales/kg							35.8	25.6
EBIT/kg							1.3	0.3
Net sales split
Sweden	664	547	180	121	31	19	876	687
Denmark	432	392	507	377	64	53	1.004	822
Norway	406	385	105	85	6	6	518	475
Ireland	564	470	4	1	25	17	593	488
Finland	198	148	6	5	7	7	211	160
Total Net sales per country	2,265	1,942	802	589	135	102	3,202	2,632
Retail	1,759	1,515	149	125	6	4	1,913	1,644
Export	150	138	74	55	29	13	254	205
Foodservice	199	154	537	380	1	1	737	535
Industry / Other	157	135	41	30	99	84	297	248
Total Net sales sales channel	2,265	1,942	802	589	135	102	3,202	2,632
Chilled	1,816	1,551
Frozen	449	391
Total Net sales sub segment	2,265	1,942
LTI per million hours worked6)	32.7	43.6	4.7	20.4			27.8	40.2
Use of antibiotics (% of flocks treated)	11.0	4.5					11.0	4.5
Animal welfare indicator (foot score)7)	14.1	7.0					14.1	7.0
CO2 emissions (g CO2e/kg product)8)							67.0	71.9
Critical complaints9)	0	0	0	0	0	0	0	0
Feed efficiency (kg feed/live weight)10)	1.50	1.51					1.50	1.51

1) Includes feed in Ireland, hatching in Sweden, 100% consolidation of the 51% owned entity Rokkedahl in Denmark. Net sales for the segment Ready-to-cook includes the external net sales 2) Net sales for the segment Ready-to-eat includes the external net sales. Operative result for the segment includes the integrated result for the group without internal margins

3) Other consist of Ingredients, business and group cost, see note 2 for definition of Other. 4) Adjusted for non-comparable items. see note 6

5) Live Weight, tonnes

6) Injuries lead to absence at least the next day, per million hours worked

7) Foot score; leading industry indicator for animal welfare. The score is measured according to industry standard, meaning assessing 100 feet per flock independent of flock size

8) g CO2e/kg product. Location-based method used for calculations. Emission factors from DEFRA 2020 and IEA 2018–2020. Includes 90% of Scope 1 and Scope 2 emissions for Scandi Standard Group, with exception for owned and leased vehicles and energy and electricity consumed at our sites Harlösa, SweHatch, Rokkedahl och Ski

9) Includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content or sell by dates

10) Feed conversion rate (kg feed/kg live weight). Includes only conventional chickens (approximately 85% of the Group's chicken . The figures are based on grower's reported figures in all countries except in Sweden, where figures are country averages from Svensk Fågel

Ready-to-cook Ready-to-eat

Note, adjusted operating income in line with operating income as no noncomparable items was reported in the periods

Sustainability performance

Focus areas and development

Scandi Standard's vision is Better Chicken for a Better Life. We contribute to sustainable food production by providing healthy and innovative chicken products produced in a responsible and resource-efficient way. Expectations and requirements on Scandi Standard's sustainability work from different stakeholders are increasing and are to a larger extent linked to operational and financial success for the Group – with the ambition to be a sustainability leader in the global poultry space.

Third quarter 2022

• The lost time injury frequency rate (LTIFR) during the third quarter 2022 was 27.8 LTIs per million hours worked. This is 31 percent lower than the third quarter 2021 and considerably lower than the full-year result for 2021. The work to further improve is ongoing, and the target is to reach an average level of 25.0 LTIs per million hours worked in the fourth quarter of 2022.
• During the third quarter of 2022, use of antibiotics in the Group remained higher than in previous years, even if it is still low in an international comparison and negligible in the Nordic countries. In the third quarter, 11.0 percent of flocks were treated, compared with 4.5 percent in the corresponding quarter in 2021. The decline in result is, as before, mainly driven by the Irish operations and Scandi Standard continues to work with systematic improvement measures, which are expected to lead to gradual advances toward previously reported levels.
• Foot pad condition (foot score) is a leading industry indicator for animal welfare, a low score equates good foot health, where values below − are good in an international comparison. The result for the third quarter of 2022 was 14.1 points, which is a decline compared with the corresponding quarter of 2021, when the result was 7.0. Like the use of antibiotics, the decline in result is driven by the Irish business, and here as well we are systematically working to return to previously reported levels.
• Decreasing the climate impact of its own operations as well as across the value chain is a key priority at Scandi Standard. The result for the third quarter with regards to carbon intensity in own operations was 67.0 g CO2e/kg product which was seven percent lower year-on-year. The decrease was attributable to lower consumption of fuel oil in Swedish operations, as well as to an update of emission factors used for calculating emissions where, for example, district heating has been updated to use the respective specific production prerequisites in Sweden and Denmark.
• Critical complaints remain at a very low level, no new complaint was reported during the third quarter of 2022.

Scandi Standard climate labelling products in all home markets

As announced in the second quarter, Scandi Standard has worked together with the specialist and independent organisation Carbon Trust to calculate and certify the carbon footprint of 282 products in the markets Scandi Standard operates in. The calculations were made throughout the value chain – from farm to fork – and will now be used as a basis to climate label the products. We see this as a step toward increased transparency and a way to take a lead in the climate transition and guide consumers toward more informed choices. Climate labelling will be launched on an ongoing basis in the various markets in the fourth quarter of 2022 and the first quarter of 2023 and will be adapted to local conditions.

Several scientific studies show that chicken is the animal protein that impacts the climate the least per kilo, but we also need to continue to reduce our carbon footprint. The calculations made on a product level in all countries mean that we have a good basis to obtain a detailed understanding of our climate impact and to be able to take those actions that make the most difference. This is also a key component in the update of our climate and sustainability targets, which is currently ongoing.

Among the measures identified, there is, for example, an initiative where Scandi Standard works towards increased transparency in the value chain regarding data and information related to animal care, environment and climate.

Sustainability Overview	Q3 2022	Q3 2021	Δ	9M 2022	9M 2021	Δ	2021	2022 Target
LTI per million hours worked1)	27.8	40.2	-31%	28.3	37.8	-25%	39.2	25.06)
Use of antibiotics (% of flocks treated)	11.0	4.5	146%	11.1	4.8	132%	5.2	4.7
Animal welfare indicator (foot score)2)	14.1	7.0	99%	13.7	9.2	49%	9.3	8.4
CO2 emissions (g CO2e/kg product)3)	67.0	71.9	-7%	67.4	77.4	-13%	79.9	75.9
Critical complaints4)	0	0	0%	1	4	-75%	7	0
Feed efficiency (kg feed/live weight)5)	1.50	1.51	-1%	1.50	1.52	-1%	1.52	1.50

1) Injuries lead to absence at least the next day, per million hours worked

2) Foot score; leading industry indicator for animal welfare. The score is measured according to industry standard, meaning assessing 100 feet per flock independent of flock size

3) g CO2e/kg product. Location-based method used for calculations. Emission factors from Energiföretagen 2020, Energistyrelsen 2020 and AIB 2020. Includes 80% of Scope 1 and Scope 2 emissions for Scandi Standard Group, with exception for owned and leased vehicles, technical gases, and energy and electricity consumed at our sites Harlösa, SweHatch, Rokkedahl och Ski

4) Includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content or sell by dates 5) Feed conversion rate (kg feed/kg live weight). Includes only conventional chickens, approximately of the Group's chicken. The figures are based on grower's reported figures in all countries except in Sweden, where figures are country averages from Svensk Fågel

6) The target for lost time injury frequency rate (LTIFR) is set to be achieved in Q4 2022, and corresponds to 38% decrease in the LTIFR compared to full year 2021

Segment: Ready-to-cook

MSEK	Q3 2022 Q3 2021		Δ	R12M	2021
Net sales	2,265	1,942	17%	8,300	7,611
EBITDA	116	88	31%	339	424
Depreciation	-69	-69	1%	-304	-266
EBITA	46	20	138%	34	158
Amortisation	-13	-12	7%	-51	-50
EBIT	34	7	352%	-16	110
EBITDA margin, %	5.1%	4.5%	0.6ppt	4.1%	5.6%
EBITA margin, %	2.1%	1.0%	1.0ppt	0.4%	2.1%
EBIT margin, %	1.5%	0.4%	1.1ppt	-0.2%	1.4%
Non-comparable items1)	-	-	-	-	-
Adj. EBITDA1)	116	88	31%	339	424
Adj. EBIT1)	34	7	352%	-16	110
Adj. EBITDA margin, %1)	5.1%	4.5%	0.6ppt	4.1%	5.6%
Adj. EBIT margin, %1)	1.5%	0.4%	1.1ppt	-0.2%	1.4%
LTI per million hours worked2)	32.7	43.6	-25%	33.9	43.2
Animal welfare indicator3)	14.1	7	99%	12.9	9.3
Critical complaints4)	0	0	0%	0	1

1) Restated non-comparable items, see note 6

2) Injuries lead to absence at least the next day, per million hours worked

3) Foot score; leading industry indicator for animal welfare

4) Includes recall from customers or consumers, presence of foreign objects in the product, allergen or incorrect content or sell-by dates

Net sales within the segment Ready-to-cook (RTC) increased by 17 percent from MSEK 1,942 to MSEK 2,265 MSEK. In fixed currency, the increase in net sales was 13 percent, driven by price increases across all sales channels. For Retail, growth in net sales amounted to 16 percent.

Sweden and Ireland are main contributors with an increased net sales of 22 percent and 20 percent respectively versus the same period last year. Finland is also progressing and increased net sales by 34 percent.

Slaughtered volumes reduced by 12 percent compared to 2021, mainly driven by Denmark whilst volume in Finland continues to grow.

Sales of frozen products are increasing by 15 percent, while the corresponding figure for chilled landed at 17 percent.

During the quarter, export to Asia has ramped up as restrictions related to bird flu have been removed.

Ready-to-cook: Change in EBIT Q3 2021 – Q3 2022 (MSEK)

Operating income (EBIT) for Ready-to-cook increased by MSEK 26 to MSEK

34 (7) corresponding to an operating income margin (EBIT margin) of - 1.5 (0.4) percent.

Decreased volumes have had a negative effect on the result in the quarter.

Cost increases in input goods are better compensated for by the price increases implemented during the third quarter of 2022, with some variation between countries. Increasing energy costs are continuing to be challenging.

The third quarter of last year was also burdened with cost related to termination of supplier contracts of MSEK 17 as well as affected by bird flu.

Ready-to-cook Denmark worsened the result vs the second quarter with MSEK -20 delivering a negative result of -50 MSEK for the third quarter. This is driven by a challenging macro environment with changes in demand and high energy prices.

Other operating costs increased during the quarter, mainly driven by inflation and internal projects.

No non-comparable items were reported in the third quarter.

Lost time injuries (LTI) for the RTC business amounted to 32.7 per million hours worked during the second quarter, which is an improvement of 25 percent compared to the corresponding quarter last year, this shows that implemented measures still deliver expected results.

No critical complaint was reported for RTC during the second quarter.

Segment Ready-to-cook (RTC): is the Group's largest product category and consists of products that are either chilled or frozen, that have not been cooked. These include whole birds, cuts of meat, deboned and seasoned, or marinated products. Products are made available mainly via Retail and Foodservice sale channels to both domestic and export markets. The segment comprises RTC processing plants in all five countries, the feed business in Ireland, egg production in Norway, and the hatching business in Sweden. Net sales for the segment consist of the external net sales.

Segment: Ready-to-eat

MSEK		Q3 2022 Q3 2021	Δ	R12M	2021
Net sales	802	589	36%	2,736	2,112
EBITDA	83	58	43%	238	187
Depreciation	-12	-12	2%	-50	-49
EBITA	70	46	54%	188	138
Amortisation	0	0	-	0	0
EBIT	70	46	54%	188	138
EBITDA margin, %	10.3%	9.8%	0.5ppt	8.7%	8.8%
EBITA margin, %	8.8%	7.8%	1.0ppt	6.9%	6.5%
EBIT margin, %	8.8%	7.8%	1.0ppt	6.9%	6.6%
Non-comparable items1)	-	-	-	-	-
Adj. EBITDA1)	83	58	43%	238	187
Adj. EBIT1)	70	46	54%	188	138
Adj. EBITDA margin, %1)	10.3%	9.8%	0.5ppt	8.7%	8.8%
Adj. EBIT margin, %1)	8.8%	7.8%	1.0ppt	6.9%	6.6%
LTI per million hours
worked2)	4.7	20.4	-77%	14.8	13.6
Critical complaints3)	0	0	0%	4	6

1) Restated non-comparable items. see note 6

2) Injuries lead to absence at least the next day, per million hours worked

3) includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content or sell by dates

Net sales within the segment Ready-to-eat (RTE) increased by 36 percent from MSEK 589 to MSEK 802. In fixed currency, the increase was 31 percent.

Net sales in Sweden showed strong growth during the second quarter with an increase of 49 percent and is now representing 23 percent of the RTE business. On top of the price/mix improvements, Sweden is also growing 13 percent on volume, much driven by sales success within quick service restaurants (QSR)l.

Also, Denmark and Norway delivered significant growth in net sales mainly driven by price.

Net sales within Foodservice grew by 41 percent and does now represent 67 percent of the RTE net sales. The growth derives from changes in consumer behaviour within quick service restaurants (QSR) in the Nordics and Northern Europe where consumers tend to opt more for chicken products versus other sources of protein.

Retail sales increased by 19 percent and represent 19 percent of total RTE sales, while Export grew by 36 percent and now stand for 9 percent of the RTE business.

Operating income (EBIT) for RTE increased by MSEK 25 to MSEK 70 (46) corresponding to an operating margin (EBIT margin) of 8.8 (7.8) percent.

The price increases have compensated for the cost increases of input goods and energy that have affected the business. Also, a product mix transition to higher value products contributes to the positive result.

At the same time the segment continued to be negatively impacted by the fire that occurred in the production site in Farre at the beginning of April, mainly due to lost sales. Refurbishment is planned for the fourth quarter.

Other operating costs increased with MSEK 10, driven by higher sales and marketing spending to stimulate innovation and growth.

Also, the operating margin of 8.8 percent for the segment is clearly exceeding the corresponding period in 2019 (5,2 percent) before the Covid-19 pandemic and 2 percent units higher than the second quarter of 2022. The EBITDA margin is now over 10 percent, which is above our financial target.

No non-comparable items were reported in the third quarter 2022.

Lost time injuries (LTI) for the RTE business amounted to 4.7 per million hours worked during the third quarter, which was an improvement from 20.4 in the corresponding quarter previous year. The number of hours worked within the RTE business is relatively low in comparison to RTC, hence also a smaller number of accidents influences the LTIFR. Looking at the whole Group, the LTIFR has improved by 31 percent in the third quarter compared to the corresponding quarter last year.

No critical complaints were reported during the third quarter.

.

Segment Ready-to-eat (RTE): consists of products that have been cooked during processing and are ready to be consumed, either directly or after being heated up. Products range from grilled and pre-sliced chicken fillets with different seasoning to chicken nuggets. Sales are mainly to Retail and Foodservice sales channels, and part of the production is exported. The segment comprises RTE processing plants in Sweden, Denmark and Norway, combined with third-party production. Net sales for the segment consist of the external net sales. The operational result includes the integrated result for the group without internal margins.

Segment: Other/ Ingredients and group cost

Ingredients

Net sales within Ingredients amounted to MSEK 135 (102) with an operating income (EBIT) of MSEK 22 (5). The improvement in operating income (EBIT) was mainly driven by increased sales prices.

Group cost

Group costs of MSEK -14 (-28) were recognised in the Group operating income (EBIT).

Other

Personnel

The average number of fulltime employees in the second quarter 2022 was 3,179 (3,201) and 3,139 (3,250) in the first nine months of the year.

Government support

During the third quarter 2022 an amount of MSEK 0 (2) of governmental support has been recognized in profit. The received government support refers to compensation for increased sick leave.

Average exchange rates

	2022–09	2021–09
DKK/SEK	1.42	1.37
NOK/SEK	1.05	0.99
EUR/SEK	10.53	10.15

Group results, financial position and cash flow January – September 2022

Net sales amounted to MSEK 9,050 (7,666). At constant exchange rates net sales increased by 15 percent. The largest driver is price increases. Net sales to Retail sales channel increased with 9 percent while net sales to Food service increased with 46 percent after restrictions related to Covid-19 pandemic were lifted. Sales to the Export channel also increased.

Operating income (EBIT) for the Group amounted to MSEK 191 (192), corresponding to an operating margin (EBIT margin) of 2.1 (2.5) percent. No non-comparable items reported in the period.

The decrease in operating income is mainly driven by lower results in Ready-to-cook, while Ready-to-eat has improved its results.

In addition to inflation the operating income within Ready-to-cook was also affected by costs related to the write-down of fixed assets in Ireland, costs related to the fire incident in Farre and a provision for compensation linked to an old contract dispute in Finland. Read-to-eat was also negatively affected by increased inflation, including higher energy costs however, managed to counter the negative effects by implemented price increases, growth, a good sales mix and stable operative results.

Finance net for the Group amounted to MSEK -72 (-60). The increase is primarly driven by increased driven by interest expenses for interestbearing liabilities of MSEK -37 (-28) due to increased interest rates. In addition the finance net consists of interest on leasing of MSEK -9 (-9) and currency/other items of MSEK - 26 (-23).

Tax expenses for the Group amounted to MSEK -35 (-34) corresponding to an effective tax rate of approximately 30 (25) percent. The increased tax rate in 2022 was mainly explained by the mix of tax rates between the different countries and that no deferred tax asset was booked for Finland in the first nine months.

Income for the period for the Group decreased by 16 percent to MSEK 83 (99). Earnings per share was SEK 1.17 (1.49).

Net interest-bearing debt (NIBD) for the Group was MSEK 1,733, a decrease by MSEK 247 from the 31st of December 2021. The operating cash flow for the first nine months increased to MSEK 389 (278) positively affected by higher EBITDA and by a low capital expenditure as the investment rate during the beginning of the year has been at a very low level in order to create financial flexibility.

Total equity attributable to the owners of the parent company as of September 30, 2022, amounted to MSEK 2,196 (1,917). The equity to assets ratio amounted to 31.5 (29.1) percent. Return on equity was 4.0 (6.3) percent.

The financial target for the Group's adjusted ITD margin is to exceed 10 percent in the medium term During the last twelve-month period, the company's adjusted ITD margin amounted to .4 percent, which is below the year 2021 level, and below the company's target.

The financial target for the Group´s net interest-bearing debt in relation to adjusted EBITDA is 2.0-2.5x. The outcome as of September 30, 2022, was 2.8x (2.8x), which was above the target range for the Group but an improvement compared with previous quarter.

Net Sales and Operating Income (EBIT)2)

MSEK	9M 2022	9M 2021	R12M	2021
Net sales	9,050	7.666	11,485	10.101
EBITDA	520	474	645	598
Depreciation	-291	-244	-357	-328
EBITA	230	230	270	270
Amortisation	-39	-37	-51	-50
EBIT	191	192	221	222
EBITDA margin, %	5.7%	6.2%	5.6%	5.9%
EBITA margin, %	2.5%	3.0%	3.1%	2.7%
EBIT margin, %	2.1%	2.5%	1.9%	2.2%
Non-comparable items1)	-	-17	26	9
Adj. EBITDA1)	520	491	618	589
Adj. EBIT1)	191	210	194	213
Adj. EBITDA margin, %1)	5.7%	6.4%	5.4%	5.8%
Adj. EBIT margin, %1)	2.1%	2.7%	1.7%	2.1%
Chicken processed (tonne lw)3)	270,335	299,081	364,622	393,369

Adj. EBIT/kg 0.7 0.6 0.6 0.6

1) Restated non-comparable items. see note 6

2) For specific explanatory items, see note 7. 3) Live Weight, tons

Change in EBIT 9M 2021 – 9M 2022 (MSEK)

Finance net and tax expenses

MSEK	9M 2022	9M 2021	R12M	2021
Finance income	1	0	2	2
Finance expenses	-73	-60	-97	-83
Finance net	-72	-60	-94	-82
Income after finance net	119	132	126	140
Income tax expenses	-35	-34	-39	-37
Income tax expenses %	-30%	-25%	-31%	-26%
Income for the period	83	99	88	103
Earnings per share, SEK	1.17	1.49	1.27	1.60

Net-interest-bearing debt (NIBD)

MSEK	9M 2022	9M 2021	R12M	2021
Opening balance NIBD	1,980	1.933	1,891	1.933
EBITDA	520	474	645	598
Change in working capital	68	104	126	162
Net capital expenditure	-143	-238	-211	-306
Other operating items	-57	-61	-103	-108
Operating cash flow	389	278	457	347
Paid finance items, net	-65	-52	-81	-69
Paid tax	-58	-61	-54	-56
Dividend	0	-81	0	-81
Business combinations	0	-35	-136	-171
Other items	-19	-7	-28	-17
Decrease (+) / increase (-) NIBD	247	-42	158	-47
Closing balance NIBD	1,733	1.891	1,733	1.980
1) Other items mainly consist of effects from changes in foreign exchange rates and net change

of leasing assets.

Financial targets	9M 2022	9M 2021	R12M	2021	Target
Adj. EBITDA margin, %	5.7%	6.4%	5.4%	5.8%	10%
NIBD/Adj. EBITDA	2.8x	2.8x	2.9x	3.4x	2.0-2.5x

1) Target for Net sales and dividend is measured and evaluated on annual basis

Other information

Risks and uncertainties

Scandi Standards' risks and uncertainties are described on pages 7 – 61 and pages 89 – 92 in the Annual Report 2021, which is available at www.scandistandard.com.

This description also includes a section on "Changed purchasing costs" which is also stated here in updated form: The Group is also exposed to general cost changes including energy, transportation, insurance and packaging materials and for cost changes as an effect of geopolitical uncertainty. The was in Ukraine has led to increased volatility in pricing on inputs goods such as feed, frying oil and packaging material as well as for energy and transport. The war has also increased the risk of temporary shortage of certain food commodities, which in turn could affect live animal production. Scandi Standard's business model, which generally enables fluctuations in raw material prices to be carried over to customers, provides a good basis for compensating for price and cost increases over time.

Events after the close of the period

Kasper Lenbroch has been hired as new Country Manager for Denmark. Kasper, whom will start on November 1st, 2022, has a solid experience from working with fast moving consumer goods (FMCG) and the retail market in the Nordics as well as abroad and will be an important force in our effort to create value for our customers and consumers in Denmark .

Stockholm, 12 November 2021

Jonas Tunestål Managing director and CEO

This is a translation of the original Swedish version published on www.scandistandard.com

_____________________________________________________________________________________________________________________

uditor's report

Scandi Standard AB (publ) reg. no. 556921-0627

Introduction

We have reviewed the condensed interim financial information (interim report) of Scandi Standard as of 30 September 2022 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 28 October 2022 Öhrlings PricewaterhouseCoopers AB

Ann-Christine Hägglund Authorized Public Accountant

Consolidated income statement

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Net sales	3,202	2,632	9,050	7,666	11,485	10,101
Other operating revenues	3	4	19	13	17	18
Changes in inventories of finished goods and work in
progress	71	28	-33	-27	47	54
Raw materials and consumables	-2,135	-1,655	-5,751	-4,619	-7,333	-6,200
Cost of personnel	-524	-515	-1,585	-1,561	-2,065	-2,041
Depreciation, amortisation and impairment	-100	-96	-329	-281	-426	-378
Other operating expenses	-405	-370	-1,179	-998	-1,514	-1,332
Share of income of associates	0	0	0	0	2	2
Operating income	112	30	191	192	221	222
Finance income	1	0	1	0	2	2
Finance expenses	-29	-20	-73	-60	-97	-83
Income after finance net	84	10	119	132	126	140
Tax on income for the period	-18	-6	-35	-34	-39	-37
Income for the period	66	4	83	99	88	103
Whereof attributable to:
Shareholders of the Parent Company	65	2	76	98	83	104
Non-controlling interests	2	1	7	1	5	-1
Average number of shares	65,327,164	65,325,178	65,327,164	65,275,290	65,326,171	65,287,762
Earnings per share, SEK	0.99	0.04	1.17	1.49	1.27	1.60
Earnings per share after dilution, SEK	0.99	0.04	1.17	1.49	1.27	1.60
Number of shares at the end of the period	66,060,890	66,060,890	66,060,890	66,060,890	66,060,890	66,060,890

Consolidated statement of comprehensive income

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Income for the period	66	4	83	99	88	103
Other comprehensive income
Items that will not be reclassified to the income statement
Actuarial gains and losses in defined benefit pension plans	15	13	45	24	63	42
Tax on actuarial gains and losses	-3	-3	-9	-5	-13	-9
Total	12	11	35	19	50	33
Items that will or may be reclassified to the income statement
Cash flow hedges	14	1	25	-1	25	-1
Currency effects from conversion of foreign operations	50	17	132	54	147	70
Income from currency hedging of foreign operations	-13	-2	-19	-10	-23	-14
Tax attributable to items that will be reclassified to the income statement	-3	0	-5	0	-5	0
Total	48	16	133	43	145	55
Other comprehensive income for the period, net of tax	60	27	168	63	194	88
Total comprehensive income for the period	127	31	252	162	282	192
Whereof attributable to:
Shareholders of the Parent Company	125	29	245	160	277	193
Non-controlling interests	2	1	7	1	5	-1

Consolidated statement of financial position

MSEK	Note	September 30, 2022	September 30, 2021	December 31, 2021
ASSETS
Non-current assets
Goodwill		957	911	921
Other intangible assets		900	850	876
Property plant and equipment		1,880	1,910	1,889
Right-of-use assets		387	416	415
Participations in associated companies		48	44	46
Surplus in funded pensions		78	13	34
Derivative instruments	3	15	-	-
Financial assets	3	3	1	3
Deferred tax assets		78	59	65
Total non-current assets		4,347	4,205	4,249
Current assets
Biological assets		101	104	103
Inventory		784	700	785
Trade receivables	3	1,156	928	811
Other short-term receivables		122	92	92
Prepaid expenses and accrued income		158	143	104
Cash and cash equivalents	3	303	425	350
Total current assets		2,625	2,394	2,245
TOTAL ASSETS		6,972	6,599	6,494
EQUITY AND LIABILITIES
Shareholder's equity
Share capital		1	1	1
Other contributed equity		646	646	646
Reserves		259	114	125
Retained earnings		1,291	1,157	1,180
Capital and reserves attributable to owners		2,196	1,917	1,951
Non-controlling interests		8	3	0
Total equity		2,204	1,920	1,951
Liabilities
Non-current liabilities
Non-current interest-bearing liabilities	3	1,632	1,870	1,884
Non-current leasing liabilities		343	365	367
Derivative instruments	3	-	8	5
Provisions for pensions		-	-	3
Other provisions		10	8	9
Deferred tax liabilities		174	158	178
Other non-current liabilities	4	69	64	65
Total non-current liabilities		2,228	2,472	2,511
Current liabilities
Current leasing liabilities		75	70	68
Derivative instruments	3	1	3	5
Trade payables	3	1,658	1,303	1,291
Tax payables		82	55	55
Other current liabilities	4	164	351	179
Accrued expenses and prepaid income		559	426	433
Total current liabilities		2,540	2,208	2,031
TOTAL EQUITY AND LIABILITIES		6,972	6,599	6,494

Consolidated statement of changes in equity

Equity attributable to shareholders of the Parent Company

MSEK	Share Note capital	Other contributed equity	Reserves	Retained earnings	Equity attributable to shareholders of the Parent Company	Non controlling interests	Total equity
Opening balance January 1, 2021	1	727	70	1,077	1,875	1	1,876
Income for the year Other comprehensive income for the year, net after tax			55	104 33	104 88	-1 -	103 88
Total comprehensive income			55	138	193	-1	192
Dividend		-81			-81	-	-81
Long term incentive program (LTIP)				-3	-3	-	-3
Repurchase of own shares				-32	-32	-	-32
Total transactions with the owners	-	-81	-	-35	-117	0	-117
Closing balance December 31, 2021	1	646	125	1,180	1,951	0	1,951
Opening balance January 1, 2022	1	646	125	1,180	1,951	0	1,951
Income for the period				76	76	8	83
Other comprehensive income, net after tax			133	35	168	-	168
Total comprehensive income			133	111	244	8	252
Dividend
Long term incentive program (LTIP)				0	0	-	0
Repurchase of own shares
Total transactions with the owners	-	-	-	0	0	0	0
Closing balance September 30, 2022	1	646	258	1,291	2,196	8	2,204

Consolidated statement of cash flows

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
OPERATING ACTIVITIES
Operating income	112	30	191	192	221	222
Adjustment for non-cash items	107	103	337	284	406	354
Paid finance items, net	-27	-16	-65	-52	-81	-69
Paid current income tax	-7	-5	-58	-61	-54	-56
Cash flow from operating activities before changes in operating capital	184	111	405	364	492	451
Changes in inventories and biological assets	-70	-33	34	21	-47	-60
Changes in operating receivables	43	-9	-366	-99	-204	64
Changes in operating payables	141	72	400	181	377	158
Changes in working capital	115	31	68	104	126	162
Cash flow from operating activities	299	142	472	468	618	613
INVESTING ACTIVITIES
Business combinations	-	-23	-	-35	-136	-171
Investments in rights of use assets	0	0	-1	0	-2	-1
Investments in intangible assets	-25		-31		-31
Investment in property, plant and equipment	-42	-31	-111	-238	-180	-306
Cash flows used in investing activities	-67	-54	-143	-273	-348	-478
FINANCING ACTIVITIES
New loan	613	-	2,561		2,561	-
Repayment loan	-944	-	-2,857	-31	-2,857	-31
Payments for amortisation of leasing liabilities	-19	-21	-63	-64	-83	-84
Dividend	-	-	-	-81	-	-81
Repurchase of own shares	-	-	-	-32	-	-32
Other	2	-3	-8	19	3	29
Cash flows in financing activities	-348	-23	-367	-189	-376	-199
Cash flows for the period	-116	65	-38	6	-107	-63
Cash and cash equivalents at beginning of the period	424	358	350	413	425	413
Currency effect in cash and cash equivalents	-4	2	-8	7	-15	1
Cash flow for the period	-116	65	-38	6	-107	-63
Cash and cash equivalents at the end of the period	303	425	303	425	303	350

Parent Company income statement

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Net sales	-	-	-	-	-	-
Operating expenses	0	0	0	0	0	0
Operating income	0	0	0	0	0	0
Finance net1)	1	-6	398	4	403	9
Income after finance net	1	-6	398	4	403	9
Group contribution	-	-	-	-	2	2
Tax on income for the period	0	-1	0	-2	2	0
Income for the period	1	-6	398	2	406	10

1)Regards dividend from subsidiaries

Parent Company statement of comprehensive income

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Income for the period	1	-6	398	2	406	9
Other comprehensive income for the period, net of tax	-	-	-	-	-	-
Total comprehensive income for the period	1	-6	398	2	406	9

Parent Company statement of financial position

MSEK Note	September 30, 2022	September 30, 2021	December 31, 2021
ASSETS
Non-current assets
Investments in subsidiaries	938	533	938
Receivables from Group entities	-	405	-
Total non-current assets	938	938	938
Current assets
Receivables from Group entities	89	10	12
Cash and cash equivalents	0	0	0
Total current assets	88	10	12
TOTAL ASSETS	1,027	948	950
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	1	1	1
Non-restricted equity
Share premium account	645	645	645
Retained earnings	-17	-27	-27
Income for the period	398	2	10
Total equity	1,027	621	629
Current liabilities
Tax payables	0	2	0
Liabilities to Group companies 4	-	326	320
Accrued expenses and prepaid income	-	0	-
Total current liabilities	0	327	320
TOTAL EQUITY AND LIABILITIES	1,027	948	950

Parent Company statement of changes in equity

MSEK
Opening balance 1 January, 2021	732
Income for the year	10
Other comprehensive income for the year, net after tax	-
Total comprehensive income	10
Dividend	-81
Repurchase of own shares	-32
Total transactions with the owners	-113
Closing balance December 31, 2021	629
Opening balance 1 January, 2021	629
Income for the period	398
Other comprehensive income for the period, net after tax	-
Total comprehensive income	398
Closing balance September 30, 2022	1,027

Notes to the condensed consolidated financial information

Note 1. Accounting policies

Scandi Standard applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This report has been prepared in accordance with IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and recommendation RFR 1, Supplementary accounting principles for Groups, issued by the Swedish inancial Reporting oard. The Parent ompany's accounts have been prepared in accordance with the Swedish Annual Accounts Act and recommendation RFR 2, Accounting for legal entities. issued by the Swedish Financial Reporting Board. No changes have been made in the Group's accounting and valuation principles compared with the accounting and valuation principles described in Note 1 of the Annual Report 2021.

Amount and dates

Unless otherwise stated. amounts are indicated in millions of Swedish kronor (MSEK). All comparative figures in this report refer to the corresponding period of the previous year unless otherwise stated. Rounding errors may occur.

Long-term incentive program

The Annual General Meeting 2022 decided on a long-term incentive program (LTIP 2022) for key employees which is designed to promote the longterm value growth of the company and the Group and increase alignment between the interests of the participating individual in the program and the company's shareholders. LTIP 2022 retains components form the long-term incentive plans adopted in 2019–2021. However, the participants are required to invest in Scandi Standard shares in order to participate in LTIP 2022. The programs are equity-settled, share based compensation plans accounted for in accordance with IFRS 2, Share based payments. The programs are expensed over the vesting period (3 years). At the end of each reporting period the Group considers changes in the anticipated number of vested shares. Social charges related to the programs are recognized as a cash-settled instrument. or more information about the Group's long-term incentive programs, see Notes 1 and 5 in the Annual Report 2021.

Note 2. Segment information

Scandi Standard manages and monitors its business based on the segments Ready-to-cook, Ready-to-eat and Other. The operational segments are in line with the Groups operational structure, which is an integrated matrix organization, i.e. managers are held responsible both for product segments and geographies. An integral part of the Company strategy for continued growth and value creation is to share best practice, capitalize on product development and drive scale efficiencies across the Group. Operations not included in the segments Ready-to-cook and Ready-to-eat and corporate functions are recognised as Other.

The responsibility for the Group's financial assets and liabilities, provisions for taxes, gains and losses on the re-measurement of financial instruments according to IFRS 9 and pension obligations according to IAS 19 are dealt with by the corporate functions and are not allocated to the segments.

Segment Ready-to-cook (RTC): is the Group's largest product segment and consists of products that are either chilled or frozen, that have not been cooked. These include whole birds, cuts of meat, deboned and seasoned, or marinated products. Products are made available mainly via Retail and Foodservice to both domestic and export markets. The segment comprises RTC processing plants in all five countries, the feed business in Ireland, egg production in Norway, and the hatching business in Sweden. Net sales for the segments consist of the external net sales.

Segment Ready-to-eat (RTE): consists of products that have been cooked during processing and are ready to be consumed, either directly or after being heated up. Products range from grilled and pre-sliced chicken fillets with different seasoning to chicken nuggets. Sales are mainly to Retail and Foodservice sales channels, and part of the production is exported. The segment comprises RTE processing plants in Sweden, Denmark and Norway, combined with third-party production. Net sales for the segments consist of the external net sales. The operational result includes the integrated result for the group without internal margins.

Other: consists of ingredients, which are products mainly for non-human consumption, and mainly used for industrial production of animal feed and other applications, in line with Scandi Standard's ambition is to utili e the animal entirely, as it reduces production waste to almost zero and contributes to a lower carbon footprint. No individual part of Other is significant enough in size to constitute its own segment.

	Ready-to-cook 1)		Ready-to-eat 2)		Other 3)		Total
MSEK	9M 2022	9M 2021	9M 2022	9M 2021	9M 2022	9M 2021	9M 2022	9M 2021
Net Sales	6,510	5,822	2,193	1,569	347	275	9,050	7,666
Operating income (EBIT)	16	142	156	107	19	-56	191	192
Non-comparable items4)	-	-	-	-	-	-17	-	-17
Adjusted EBIT4)	16	142	156	107	19	-39	191	210
Share of income of associates		0					-	0
Finance income							1	0
Finance expenses							-73	-60
Tax on income for the period							-35	-34
Income for the period							83	99

1) Includes feed in Ireland, hatching in Sweden, 100% consolidation of the 51% owned entity Rokkedahl in Denmark. Net sales for the segment Ready-to-cook includes the external net sales

2) Net sales for the segment Ready-to-eat includes the external net sales. Operative result for the segment Ready-to-eat includes the integrated result for the group without internal margins 3) Other consist of ingredients business and group cost, see note 2 for definition of Other. Group cost was MSEK 18 (30) in the first half year.

4) Restated non-comparable items. see note 6

Note 3. Accounting and valuation of financial instruments

Scandi Standard's financial instruments, by classification and by level in the fair value hierarchy as per 30 September 2022 and for the comparison period, are shown in the tables below.

		Valued at fair value	Derivatives used in hedge
September 30 2022, MSEK	Valued at amortised cost	through profit and loss¹	accounting¹
Assets
Other non-current financial assets	3	-	-
Trade receivables	1,156	-	-
Derivatives instruments	-	-	15
Cash and cash equivalents	303	-	-
Total financial assets	1,463	-	15
Liabilities
Non-current interest-bearing liabilities	1,632	-	-
Other non-current liabilities	-	-	-
Derivatives instruments	-	-	1
Current interest-bearing liabilities	-	-	-
Other current liabilities	-	-	-
Trade and other payables	1,658	-	-
Total financial liabilities	3,291	-	1

		Valued at fair value	Derivatives used in hedge
September 30 2021, MSEK	Valued at amortised cost	through profit and loss¹	accounting¹
Assets
Other non-current financial assets	1	-	-
Trade receivables	928	-	-
Derivative instruments	-	-	-
Cash and cash equivalents	425	-	-
Total financial assets	1,354	-	-
Liabilities
Non-current interest-bearing liabilities	1,870	-	-
Other non-current liabilities	-	-	-
Derivative instruments	-	-	11
Current interest-bearing liabilities	-	-	-
Other current liabilities	-	165	-
Trade and other payables	1,303	-	-
Total financial liabilities	3,173	165	11

1) The valuation of the Groups financial assets and liabilities is performed in accordance with the fair-value hierarchy:

Level 1. Quoted prices (unadjusted) in active markets for identical instruments.

Level 2. Data other than quoted prices included within level 1 that are observable for the asset or liability either directly as prices or indirectly as derived from prices.

Level 3. Non-observable data for the asset or liability.

As of 30 September 2022, and at the end of the comparison period the Group had financial derivatives (level 2) measured at fair value on the balance sheet. The fair value of forward exchange contracts is estimated based on current forward rates at the reporting date, while interest rate swaps are valued using estimates of future discounted cash flows. As of 30 September 2022, the derivatives amounted to MSEK 14 (-11).

For the Group's long-term borrowing, which as of 30 September 2022 amounted to MSEK 1,632 (1,870), fair value is considered to be equal to the amortised cost as the borrowings are held at floating market rates and hence the booked value will be approximated as the fair value.

For other financial instruments, fair value is estimated at cost adjusted for any impairment. Other current liabilities (level 3) as of 30 September 2021 refers to the additional purchase price related to the acquisition of Manor Farm. The liability was valued at estimated fair value based on historic and future expected EBITDA.

Note 4. Other liabilities

The part in other current liabilities for the Group as per 30 September 2022 amounting to MSEK - (165), refers to the additional purchase price related to performed acquisitions.

The current liabilities to Group entities in the Parent Company as per 30 September 2022 amounted to MSEK - (326).

Note 5. Alternative KPIs

The Scandi Standard Group uses the below alternative KPIs. The Group believes that the presented alternative KPIs are useful when reading the financial statements in order to understand the Group's ability to generate results before investments, assess the Group's opportunities to dividends and strategic investments and to assess the Group's ability to fulfil its financial obligations.

From Income Statement, MSEK		Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Net sales	A	3,202	2,632	9,050	7,666	11,485	10,101
Income for the period	B	66	4	83	99	88	103
+ Reversal of tax on income for the year		18	6	35	34	39	37
Income after finance net	C	84	10	119	132	126	140
+ Reversal of financial expenses		29	20	73	60	97	83
+ Reversal of financial income		-1	0	-1	0	-2	-2
Operating income (EBIT)	D	112	30	191	192	221	222
+ Reversal of depreciation, amortisation and
impairment		100	96	329	281	426	378
+ Reversal of share of income of associates		-	0	-	0	-2	-2
EBITDA	E	212	126	520	474	645	598
Non-comparable items in income for the period (EBIT)	F	0	13	-	17	-26	-9
Adjusted income for the period (Adj. EBIT)	D+F	112	43	191	210	194	213
Adjusted operating margin (Adj. EBIT margin)	(D+F)/A	3.5%	1.6%	2.1%	2.7%	1.7%	2.1%
Non-comparable items in EBITDA	G	-	13	-	17	-26	-9
Adjusted EBITDA	E+G	212	139	520	491	618	589
Adjusted EBITDA margin %	(E+G)/A	6.6%	5.3%	5.7%	6.4%	5.4%	5.8%

From Statement of Cash Flow, MSEK		Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Operating activities
Operating income (EBIT)		112	30	191	192	221	222
Adjustment for non-cash items
+ Depreciation, amortisation and impairment		100	96	329	281	426	378
- Share of income of associates		-	0	-	0	-2	-2
EBITDA		212	126	520	474	645	598
Non-comparable items in EBITDA	G	-	13	-	17	-26	-9
Adjusted EBITDA		212	139	520	491	618	589

From Balance Sheet, MSEK		September 30, 2022	September 30, 2021	December 31, 2021
Total assets		6,972	6,599	6,494
Non-current non-interest-bearing liabilities
Deferred tax liabilities		-174	-158	-178
Other non-current liabilities		-69	-64	-65
Total non-current non-interest-bearing liabilities		-243	-221	-243
Current non-interest-bearing liabilities
Trade payables		-1,658	-1,303	-1,291
Tax payables		-82	-55	-55
Other current liabilities		-164	-351	-179
Accrued expenses and prepaid income		-559	-426	-433
Total current non-interest-bearing liabilities		-2,464	-2,134	-1,958
Capital employed		4,265	4,243	4,293
Less: Cash and cash equivalents		-303	-425	-350
Operating capital		3,962	3,818	3,943
Average capital employed	H	4,254	4,305	4,268
Average operating capital	I	3,890	3,856	3,887
Operating income (EBIT), R12M		221	248	222
Adjusted operating income (Adj. EBIT), R12M	J	194	293	213
Financial income	K	1	0	2
Return on capital employed	(J+K)/H	5.2%	5.8%	5.2%
Return on operating capital	J/I	5.7%	6.4%	5.7%
Interest bearing liabilities
Non-current interest-bearing liabilities		1,632	1,870	1,884
Non-current leasing liabilities		343	365	367
Derivates		-14	11	11
Current leasing liabilities		75	70	68
Total interest-bearing liabilities		2,037	2,316	2,330
Less: Cash and cash equivalents		-303	-425	-350
Net interest-bearing debt		1,733	1,891	1,980

Note 6. Items affecting comparability (non-comparable items)

Items affecting comparability (non-comparable items) are transactions or events that rarely occur or are unusual in the ordinary business operations, and hence are unlikely to occur again. The Group's alternative performance measures, adjusted EBITDA, adjusted EBITA and adjusted operating income (adjusted. EBIT), are adjusted for non-comparable items as presented in the tables below to facilitate the understanding of the underlying current trading of the ordinary business operations. For a definition of alternative performance measures see page 22.

Non-comparable items in operating income (EBIT)

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Earn-out Debt adjustment 1)	-	-13	-	-17	13	9
Total	-	-13	-	-17	13	9
1)

In last year income of MSEK 22 related to decreased earn-out debt resulting from the final purchase price payment relating to the acquisition of Manor Farm and cost of MSEK -13 resulting from the final purchase price payment relating to the acquisition of the Finnish business.

Non-comparable items in operating income (EBIT) by segment

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Group cost	-	-13	-	-17	13	9
Total	-	-13	-	-17	13	9

Note 7. Specific explanatory items (Exceptional items)

Specific explanatory items (Exceptional items) are transactions or events that do not qualify as non-comparable items as they are likely to occur from time to time in the ordinary business operations. Disclosures about these items are provided to facilitate the understanding and assessment of the financial result. These items are not adjusted for in the Group's and the segment's alternative performance measures, adjusted ITD , adjusted EBITA and adjusted operating income (adjusted EBIT).

Specific explanatory items (Exceptional items) in operating income (EBIT)

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Bird flu1)	-	-19	-20	-52	-47	-80
Covid-19 pandemic2)	-	-	-	-8	-	-8
Settlement supplier contract3)	-	-17	-	-17	-	-17
Severance package4)	-	-6	-	-19	-	-19
One-time payment Afa Insurance5)		-		-	12	12
Fire incident in RTE facility in Farre, Denmark6)	-7	-	-17	-	-17	-
Write down assets7)	-	-	-26	-	-26	-
Provision contract dispute8)	-	-	-19	-	-19	-
Total	-7	-42	-82	-96	-98	-112

1) Cost related to bird flu – mainly price reductions.

2) Costs related to Covid-19 pandemic - Temporarily closing of production lines on products within Foodservice in Denmark, provision for bad debt, and inventory write-down.

3) Settlement related to supplier contract in Denmark.

4) Costs related to severance package for restructuring (Q3 2021), for Scandi Standard general manager and Group CEO and senior management in Ireland

5 ) In October 2021, Swedish entities in the Scandi Standard Group received a one-time payment of MSEK 12 from Afa insurance.

6) Fire incident in RTE facility in Farre, Denmark in April 2022

7) Write-down of hatchery machinery and write-down of leasing contracts regarding hatchery on farm equipment in Ireland

8) Provision for compensation linked to an old contract dispute in Finland.

Specific explanatory items (Exceptional items) in operating income (EBIT) by segments

MSEK	Q3 2022	Q3 2021	9M 2022	9M 2021	R12M	2021
Ready-to-cook	-	-36	-65	-74	-81	-90
Ready-to-eat	-7	-1	-17	-9	-17	-9
Other	-	-	-	-	-	-
Group cost	-	-5	-	-13	-	-13
Total	-7	-42	-82	-96	-98	-112

Definitions

Adjusted income for the period Income for the period adjusted for non-comparable items.

CAGR

Yearly average growth.

Capital employed Total assets less non-interest-bearing liabilities. including deferred tax liabilities.

Average Capital employed Average capital employed as of the two last years.

Adjusted return on operating capital (ROC) Adjusted operating income last twelve months (R12M) divided by average operating capital.

COGS

Cost of goods sold.

Earnings per share (EPS)

Income for the period. attributable to the shareholders. divided by the average number of shares.

Adjusted earnings per share (EPS)

Adjusted income for the period. attributable to the shareholders. divided by the average number of shares.

EBIT

Operating income.

Adjusted operating income (Adj. EBIT)

Operating income (EBIT) adjusted for non-comparable items.

EBITA

Operating income before amortisation and impairment and share of income of associates.

Adjusted EBITA

Operating income before amortisation and impairment and share of income of associates. adjusted for non-comparable items.

Adjusted EBITA margin

Adjusted EBITA as a percentage of net sales.

EBITDA

Operating income before depreciation, amortisation and impairment and share of income of associates.

Adjusted EBITDA

Operating income before depreciation, amortisation and impairment and share of income of associates. adjusted for non-comparable items.

EBITDA margin

EBITDA as a percentage of net sales.

Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales.

Equity per share

Equity attributable to the shareholders, divided by the outstanding number of shares at the end of the period.

Net interest-bearing debt (NIBID)

Interest-bearing debt excluding arrangement fees less cash and cash equivalents.

Net sales

Net sales is gross sales less sales discounts and joint marketing allowances.

Non-comparable items

Transactions or events that rarely occur or are unusual in the ordinary business operations, and hence are unlikely to occur again.

Operating capital

Total assets less cash and cash equivalents and non-interestbearing liabilities. including deferred tax liabilities.

Average operating capital Average operating capital as of the two last years.

Operating cash flow

Cash flow from operating activities excluding paid finance items net and paid current income tax. with the addition of net capital expenditure and net increase in leasing assets.

Adjusted operating cash flow Cash flow adjusted for non-comparable items.

Operating margin (EBIT margin) Operating income (EBIT) as a percentage of net sales.

Adjusted operating margin (Adj. EBIT margin) Adjusted operating income (Adj. EBIT) as a percentage of net sales.

Other operating expenses

Other operating expenses include marketing, Group personnel and other administrative costs.

Other operating revenues

Other operating revenue is revenue not related to sales of chicken, instead such as rent of excess land/buildings to other users and payment by non-employees for use of the ompany's canteens.

Production costs

Production costs include direct and indirect personnel costs related to production and other production related costs.

Raw materials and consumables

Costs of raw materials and other consumables include the purchase costs of live chicken and other raw materials such as packaging etc.

Return on capital employed (ROCE)

Operating income last twelve months (R12M) plus interest income divided by average capital employed.

Return on equity (ROE)

Income for the period last twelve months (R12M) divided by average total equity.

Return on operating capital (ROC)

Operating income last twelve months (R12M) divided by average operating capital.

Adjusted return on capital employed (ROCE) Adjusted operating income last twelve months (R12M) plus

interest income divided by average capital employed.

RTC

Ready-to-cook. Products that require cooking.

RTE

Ready-to-eat. Products that are cooked and may be consumed directly or after heating-up.

R12M

Rolling twelve months

Specific Explanatory items (exceptional items)

Transactions or events that do not qualify as non-comparable items as they are likely to occur from time to time in the ordinary business. Disclosure about these items are useful to understand and assess the performance of the business.

Working capital

Total inventory and operating receivables less non-interestbearing current liabilities.

Conference Call

A conference call for investors, analysts and media will be held on 28 October 2022 at 8.30 AM CET.

Dial-in numbers: UK: 020 3936 2999 Sweden: 010 884 80 16 US: +1 646 664 1960

Other countries: +44 20 3936 2999

Slides used in the conference call can be downloaded at www.scandistandard.com under Investor Relations. A recording of the conference call will be available on www.scandistandard.com afterwards.

Further information

For further information, please contact:

Jonas Tunestål, Managing director and CEO and Julia Lagerqvist, CFO Tel: +46 10 456 13 00 Henrik Heiberg, Head of M&A, Financing & IR Tel: +47 917 47 724

Financial calendar

Interim report for Q4 2022 February 9, 2023 Interim report for Q1 2023 May 3, 2023 Interim report for Q2 2023 August 23, 2023

This interim report comprises information which Scandi Standard is required to disclose pursuant to EU market abuse regulation and the Securities Markets Act. It was released for publication at 07:30 AM CET on 28 October 2022.

Scandi Standards AB (publ) interim report January - September 2022

Forward looking statement

This report contains forward-looking statements, and the actual outcome could be materially different. Factors that could have a material effect on the actual outcome include, but are not limited to, general business conditions, product demand, available credits, available insurance, fluctuations in exchange rates and interest rates, political and geopolitical developments, the impact of competing products and their pricing, product development, commercialization and technological difficulties, availability of production facilities, compliance in production, product quality and safety, interruptions in supply, increased raw material cost, disease outbreaks, loss of major customer contracts, major customer credit losses, effects of pandemic, bird flu and government decisions.

The forward-looking statements reflect the Board of Directors' and management's current views with respect to certain future events and potential financial performance. Although the Board of Directors and the management believe that the expectations reflected in such forwardlooking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. This report does not imply that the Company has undertaken to revise these forward-looking statements, beyond what is required under the company's registration contract with Nasdaq Stockholm, if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

About Scandi Standard

Scandi Standard is the leading producer of chicken-based food products in the Nordic region and Ireland. The company produces, markets and sells ready to eat, chilled and frozen products under the well-known brands Kronfågel, Danpo, Den Stolte Hane, Manor Farm and Naapurin Maalaiskana. Eggs are also produced and sold in Norway. We are approximately 3,000 employees with annual sales of more than SEK 10 billion.

Scandi Standard AB (publ) Strandbergsgatan 55 104 25 Stockholm Reg no. 556921-0627 www.scandistandard.com