Scandi Standard

Quarterly Report • Jul 17, 2024

" Despite the fact that hard work remains to be done this autumn, I am now shifting the focus managing acute restructuring issues to implementing a long-term strategy and procedures to increase long-

term value in the Group."

"I am proud that we have now regained our historical margin levels. The operational and financial measures implemented has secured a solid foundation for the next step of our growth journey." "We put another strong quarter behind us with increased volumes, higher earnings with strengthened margins, and look forward to continue to deliver on our strategy."

Jonas Tunestål, Managing director and CEO Jonas Tunestål, Managing director and CEO

Continued significant volume, and profit growth

April – June 2024

• Chicken processed (grill weight) amounted to 69 (67) thousand tonnes which corresponds to a 3 per cent increase.
• Net sales amounted to MSEK 3,350 (3,411). At constant exchange rates, net sales decreased by 2 per cent.
• Operating income (EBIT) increased to MSEK 127 (121), corresponding to a margin of 3.8 (3.5) per cent.
• Income for the period amounted to MSEK 71 (74). Earnings per share amounted to SEK 1.09 (1.11).
• Operating cash flow was MSEK 169 (272).

January – June 2024

• Chicken processed (grill weight) amounted to 139 (132) thousand tonnes which corresponds to a 5 per cent increase.
• Net sales amounted to MSEK 6,510 (6,695). At constant exchange rates, net sales decreased by 3 per cent.
• Operating income (EBIT) increased to MSEK 248 (213), corresponding to a margin of 3.8 (3.2) per cent.
• Income for the period amounted to MSEK 141 (117). Earnings per share amounted to SEK 2.16 (1.95)
• Operating cash flow was MSEK 99 (330).

	Q2 2024	Q2 2023	Δ	H1 2024	H1 2023	Δ	R12M	2023
Net sales	3,350	3,411	-2%	6,510	6,695	-3%	12,829	13,014
EBITDA	231	230	0%	456	426	7%	910	880
Operating income (EBIT)	127	121	5%	248	213	16%	492	457
EBITDA margin %	6.9%	6.7%	0.1ppt	7.0%	6.4%	0.6ppt	7.1%	6.8%
EBIT margin %	3.8%	3.5%	0.2ppt	3.8%	3.2%	0.6ppt	3.8%	3.5%
Non-comparable items2)	-	-	-	-	-	-	8	8
Income after finance net	90	88	2%	178	149	19%	361	333
Income for the period	71	74	-3%	141	117	20%	297	273
Earnings per share, SEK	1.09	1.11	-2%	2.16	1.95	11%	4.33	4.11
Return on capital employed %	10.8%	9.3%	5.3ppt	10.8%	9.3%	5.3ppt	10.8%	11.0%
Return on equity %	11.4%	11.0%	0.4ppt	11.4%	11.0%	0.4ppt	11.4%	11.4%
Operating cash flow	169	272	-38%	99	330	-70%	441	671
Net interest-bearing debt	1,796	1,976	-9%	1,796	1,976	-9%	1,796	1,571
NIBD/Adj. EBITDA	2.0	2.4	-16%	2.0	2.4	-16%	2.0	1.8
Chicken processed (tonne gw)3)	69,209	66,982	3%	139,342	132,085	5%	277,037	269,780
EBIT/kg	1.83	1.80	2%	1.78	1.62	10%	1.78	1.69
Lost time injuries (LTI) per million hours worked	34.0	28.8	18%	29.1	24.5	19%	26.2	23.8
Feed efficiency (kg feed/live weight)	1.48	1.50	-1%	1.49	1.50	-1%	1.49	1.50

Key metrics1)

1) For details about alternative KPIs, see note 4.

2) Adjusted for non-comparable items, see note 5.

3) Previously reported figures showed live weight, tonne. Historical data converted by a factor of 0.72.

CEO Comments

Scandi Standard reports increased operating income, margin improvements, and volume growth during the second quarter, which is good progress toward our long-term targets. The improvement in earnings was driven by a strong performance in the Ready-to-cook segment while Ready-to-eat posted lower earnings partly due to a positive non-recurring event of MSEK 11 in the same quarter last year. Overall, earnings were strong compared with the preceding year and we continue to realise additional potential. We have driven disciplined volume growth, an improved product mix, and increased efficiency, which increased the Group's operating income by 5 per cent to MSEK 127 (121). The EBIT margin strengthened to 3.8 per cent (3.5).

Continued growth for our largest segment Ready-to-cook

Ready-to-cook (RTC) increased net sales compared to the corresponding quarter last year by 2 per cent to MSEK 2,546 (2,495), driven by volume increases. Operating income improved to MSEK 98 (48), primarily due to successful efforts to ensure disciplined volume growth, and an improved product mix, and lower costs for input goods, which also benefited our consumers.

Chicken is a versatile and attractive protein, and our local brands continue to demonstrate strength in their respective markets. Our ongoing Ready-to-cook initiatives maintain a clear focus on increased efficiency and gradual earnings improvements. We invested during the quarter in increased processing and improvements both in breast and in thigh deboning. Increased integration between the Ready-to-cook and Ready-to-eat segments will further improve our ability to optimise value based on changes in demand for the different cuts of the bird.

The work within Ready-to-eat is progressing

Ready-to-eat (RTE) posted net sales of MSEK 686 (774) and an operating income of MSEK 38 (59) for the second quarter. The lower earnings compared to the corresponding period last year were driven by lower capacity utilisation at the production plant in Farre in Denmark and the insurance indemnity that positively impacted earnings in the preceding year with MSEK 11.

We noted a significant improvement compared with the first quarter of 2024 driven by our focused efforts on growing and diversifying the customer base. We anticipate continued improvement in the forthcoming quarters in line with previous announcements.

Ingredients part within category Other is a significant strategic area for Scandi Standard. Utilising a greater proportion of each bird and adding value through processing the raw material as far as possible provides us with a healthy contribution to improved profitability. Ingredients accounted for MSEK 118 (142) of revenue for the second quarter, contributing operating income of MSEK 5 (24). The decrease in prices for ingredients is strongly linked to normalised energy prices and was partly offset by several measures to raise the value of these bird cuts.

Leading in sustainability efforts

Scandi Standard sees a clear competitive advantage in being the leading player in animal welfare and sustainability in the global chicken industry and efforts to continuously develop in line with our ambitious sustainability goals are progressing where one of the goals is to halve emissions by 2030. We have been integrating sustainability in all investment decisions since 2023 for example by evaluating the impact of investments on our energy consumption, climate impact, work environment, and cyber security, but also in the area of animal welfare, which is critical for us.

1) Pro forma including Manor Farm

2) Recalculated for IFRS 16 At Group level, our key figures for sustainability developed positively during the quarter even though there was an ammonia leak at our factory in Aars in April. However, I can confirm that there were no serious injuries and that the incident was addressed quickly and in accordance with existing procedures. We have also taken lessons from the rapid and professional handling of the matter to further strengthen the Group's knowledge in the area. The incident does however negatively impact key figures for the quarter for lost time injuries (LTIs).

Solid financial position

Compared with the previous quarter, net interest-bearing debt increased to MSEK 1,796 (1,709) despite a strong EBITDA. The increase was primarily due to the acquisition of a cutting and packaging facility in Jæren in Norway that we had previously rented, a continued high pace of investment to increase capacity and automation in the facilities as well as distributing a dividend to shareholders. Scandi Standard's efforts to reduce tied-up working capital by among other things, continuing to improve the coordination between bird purchases and our sales and operational planning continues.

We have a solid financial position that allows for the extensive investment program that has been adopted to support targets for growth and margin improvement by 2027. To achieve continued increased efficiency, expansion, and higher refinement, the investments in 2024 are expected to amount to approximately MSEK 500. We successfully implemented in Sweden a new and more efficient business system during the quarter and other markets will be integrated into the common system successively.

Scandi Standard's implementation of the strategy and goals adopted for 2027 are continuing with full force. We are set to increase the value of our protein, improve our efficiency and integrate sustainability even more clearly throughout the entire value chain. Our systematic and efficient improvement efforts are enabling us to achieve new interim targets in our journey toward realising our potential across the entire Group.

In summary, during the second quarter, we have continued to develop according to plan with stable, sustainable growth and increased

profitability while we, we have completed initiatives that take Scandi Standard further steps forward. We are on the right path and are working together to gradually reach all of our goals.

Stockholm, 17 July 2024

Jonas Tunestål, Managing Director and CEO, Scandi Standard

Group results, financial position and cash flow April – June 2024

Net sales for the Group decreased by 2 per cent to MSEK 3,350 (3,411). At constant exchange rates, net sales decreased by 2 per cent. Net sales to the Retail sales channel increased by 1 per cent compared to the corresponding quarter previous year, mainly driven by volume increases. Net sales to the Foodservice sales channel decreased by 17 per cent due to reduced volumes related to the terminated contract with a major customer outside of our domestic markets. Export sales increased by 16 per cent in the quarter, driven by more targeted sales within the Readyto-eat segment and strategic export within Ready-to-cook.

Operating income (EBIT) for the Group increased by 5 per cent to MSEK 127 (121), corresponding to an operating margin (EBIT margin) of 3.8 (3.5) per cent.

Ready-to-cook reported an operating income of MSEK 98 (48), which was a clear improvement compared to the same quarter previous year, driven by measures implemented in several markets.

The operating income in the Ready-to-eat segment decreased to MSEK 38 (59), primarily driven by reduced sales and production volumes due to the termination of a larger customer contract outside of our home markets. The second quarter of last year was also positively affected by an MSEK 11 insurance compensation related to the fire incident at the Farre site in April 2022.

For Other operations, the operating income (EBIT) decreased compared to the previous year, driven by lower market prices.

Finance net for the Group amounted to MSEK -37 (-33), consisting of interest expenses for interest-bearing liabilities of MSEK -19 (-19), interest expenses on leasing of MSEK -2 (-4), and currency effects/other items of MSEK -16 (-10).

Tax expenses for the Group amounted to MSEK -19 (-14), corresponding to an effective tax rate of approximately 21 (16) per cent, which is in line with expectations due to income development and the mix of tax rates between the different countries.

Group income for the period decreased to MSEK 71 (74). Earnings per share were SEK 1.09 (1.11).

Net interest-bearing debt (NIBD) for the Group was MSEK 1,796, an increase of MSEK 87 from March 31, 2024. Operating cash flow in the quarter amounted to MSEK 169 (272), negatively affected by increased net capital expenditure. Total interest-bearing net debt was also impacted negatively by dividends and the acquisition of a cutting and packaging facility in Jaeren, which Scandi Standard previously leased, but positively affected by changes in lease assets related to the Jaeren acquisition.

Total equity attributable the parent company's shareholders as of June 30, 2024 amounted to MSEK 2,522 (2,444). The equity to assets ratio amounted to 36.3 (32.7) per cent. Return on equity was 11.4 (11.0) per cent.

The financial target for the Group's margin is to exceed per cent in the medium term. In the second quarter, the company achieved an operating margin of 3.8 (3.5) per cent, which is an improvement over full year 2023 level and a step on the way to the target for 2027.

The financial target for the Group´s net interest-bearing debt in relation to EBITDA is <2.5x. The outcome as of June 30, 2024 was 2.0x (2.4x), which is better than the target range for the Group.

he financial target for the Group's net sales is an annual average organic growth (5-year average) of 5-7 per cent, reported on annual basis.

The financial target for return on capital employed (ROCE) should amount to 15 per cent in the medium term. The outcome for the second quarter was 10.8 (9.3) per cent.

In addition to these, the Group has a target for operating profit per processed kg (GW) of >3 SEK/kg. The outcome for the second quarter was SEK 1.83 (1.80)/kg.

Net Sales and Operating Income (EBIT)1)

MSEK	Q2 2024	Q2 2023	R12M	2023
Net sales	3,350	3,411	12,829	13,014
EBITDA	231	230	910	880
Depreciation	-95	-97	-378	-376
EBITA	136	133	532	503
Amortisation	-9	-12	-41	-47
EBIT2)	127	121	492	457
EBITDA margin, %	6.9%	6.7%	7.1%	6.8%
EBITA margin, %	4.1%	3.9%	4.1%	3.9%
EBIT margin, %	3.8%	3.5%	3.8%	3.5%
Non-comparable items2)	-	-	8	8
Adj. EBITDA2)	231	230	901	871
Adj. EBIT2)	127	121	484	449
Adj. EBITDA margin, %2)	6.9%	6.7%	7.0%	6.7%
Adj. EBIT margin, %2)	3.8%	3.5%	3.8%	3.4%
Chicken processed (tonne gw)3)	69,209	66,982	277,037	269,780
EBIT/kg3)	1.83	1.80	1.78	1.69

1) For specific explanatory items, see note 6.

2) Adjusted for non-comparable items, see note 5.

3) Previously reported figures showed live weight, tonne. Historical data converted by a factor of 0.72.

Finance net and tax expenses

MSEK	Q2 2024	Q2 2023	R12M	2023
Finance income	1	1	3	4
Finance expenses	-37	-34	-134	-128
Finance net	-37	-33	-131	-124
Income after finance net	90	88	361	333
Income tax expenses	-19	-14	-65	-59
Income tax expenses %	-21%	-16%	-18%	-18%
Income for the period	71	74	297	273
Earnings per share, SEK	1.09	1.11	4.33	4.11

Net-interest-bearing debt (NIBD)

MSEK	Q2 2024	Q2 2023	R12M	2023
Opening balance NIBD	1,709	1,984	1,976	1,983
EBITDA	231	230	910	880
Change in working capital	61	120	65	228
Net capital expenditure	-105	-49	-446	-338
Other operating items	-18	-29	-88	-99
Operating cash flow	169	272	441	671
Paid finance items, net	-33	-29	-138	-132
Paid tax	-36	-36	-24	-54
Dividend	-75	-75	-75	-75
Acquired and divested
operations/assets	-187	-	-61	126
Other items1)	75	-124	38	-124
Decrease (+) / increase (-) NIBD	-87	7	180	412
Closing balance NIBD	1,796	1,976	1,796	1,571

1) Other items mainly include currency exchange effects and net changes in lease assets.

Financial targets	Q2 2024	Q2 2023	R12M	2023	Target
Net Sales1)				7%	5–7%
EBIT margin	3.8%	3.5%	3.8%	3.5%	>6%
EBIT/kg	1.83	1.80	1.78	1.69	>3 SEK
ROCE	10.8%	9.3%	10.8%	11.0%	>15%
NIBD/EBITDA	2.0x	2.4x	2.0x	1.8x	<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)		Group
MSEK unless stated otherwise	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023
Net sales	2,546	2,495	686	774	118	142	3,350	3,411
EBITDA	181	139	52	74	-3	17	231	230
Depreciation	-74	-79	-14	-15	-6	-4	-95	-97
EBITA	107	60	38	59	-9	13	136	133
Amortisation	-9	-12	-	-	-	-	-9	-12
EBIT	98	48	38	59	-9	13	127	121
EBITDA margin, %	7.1%	5.6%	7.6%	9.5%	-2.6%	12.1%	6.9%	6.7%
EBITA margin, %	4.2%	2.4%	5.6%	7.7%	-8.0%	9.4%	4.1%	3.9%
EBIT margin, %	3.8%	1.9%	5.6%	7.7%	-7.8%	9.4%	3.8%	3.5%
Non-comparable items 4)	-	-	-	-	-	-	-	-
Adj. EBITDA4)	181	139	52	74	-3	17	231	230
Adj. EBIT4)	98	48	38	59	-9	13	127	121
Adj. EBITDA margin, %4)	7.1%	5.6%	7.6%	9.5%	-2.6%	12.1%	6.9%	6.7%
Adj. EBIT margin, %4)	3.8%	1.9%	5.6%	7.7%	-7.8%	9.4%	3.8%	3.5%
Capital employed							4,412	4 731
Return on capital employed							10.8%	9.3%
Chicken processed (GW)5)							69,209	66,982
Net sales/kg							48.4	50.9
EBIT/kg5)							1.83	1.80
Net sales split
Sweden	671	643	187	177	32	45	891	866
Denmark	466	526	352	478	35	48	852	1 052
Norway	441	409	127	108	10	8	578	525
Ireland	700	681	2	3	34	33	736	717
Finland	268	235	18	7	7	8	293	250
Total Net sales per country	2,546	2,495	686	774	118	142	3,350	3,411
Retail	1,915	1,922	193	165	4	5	2,113	2,092
Export	184	176	125	88	42	39	352	303
Foodservice	258	215	312	474	4	3	574	692
Industry / Other	188	182	55	47	68	95	311	324
Total Net sales sales channel	2,546	2,495	686	774	118	142	3,350	3,411
Chilled	2,020	1,983
Frozen	526	512
Total Net sales sub segment	2,546	2,495
LTI per million hours worked6)	37.1	31.7	15.5	10.7			34.0	28.8
Use of antibiotics (% of flocks treated)	1.6	10.6					1.6	10.6
Animal welfare indicator (foot score)	4.3	9.9					4.3	9.9
CO2 emissions (g CO2e/kg product)							75.5	78.3
Critical complaints	0	0	0	0	0	0	0	0
Feed efficiency (kg feed/live weight)	1.48	1.50					1.48	1.50

1) Includes feed in Ireland, hatching in Sweden, 100% consolidation of the 51% owned entity Rokkedahl Food Aps in Denmark until 18th of July 2023. 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 5.

5) Previously reported figures showed live weight, tonne. Historical data converted by a factor of 0.72.

6) Comparative figures have been adjusted to previously published results.

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. xpectations and requirements on Scandi Standard's sustainability work from different stakeholders are increasing and are to a larger extent linked to the Group's operational and financial performance. Scandi Standard's ambition is to be a sustainability leader in the global poultry space.

Second quarter 2024

• The lost time injury frequency rate (LTIFR) for the second quarter of 2024 was 34.0 LTIs per million hours worked. This was up 18 per cent year-on-year and above this year's target of 22.5. The year-on-year increase was largely the result of an ammonia leak at the Group's RTC facility in Denmark. The leak was handled efficiently in accordance with the procedures that are in place, and nobody was harmed. However, 14 people sought medical care as a precautionary measure, which impacted second-quarter results. The systematic occupational health and safety initiatives remain the highest priority, and the continual improvements being made to all Scandi Standard's facilities are regularly monitored by Group management. ll of the Group's countries except Denmark outperformed the targets set for 2024.
• In the second quarter of 2024, antibiotics usage in the Group was 1.6 per cent in treated flocks, corresponding to a year-on-year improvement of 85 per cent. Usage in the Nordic countries has been negligible. By international standards, the result is very low, and we estimate that average European antibiotics usage in chicken rearing ranges from 40–60 per cent. The major improvement in the second quarter results from efforts in Ireland, where systematic efforts have taken place throughout the value chain – from parent birds to hatchery and broiler rearing. In particular, the quality of day-old chicks has improved together with their handling during the first 48 hours. There was also a low level of disease due to seasonality.
• Foot pad condition (foot score) is a leading industry indicator for animal welfare, a low score equates to good foot health, where values below 15–20 are good in an international comparison. The result for the first quarter of 2024 was 4.3 points, which was an improvement of 57 per cent compared with the corresponding quarter of 2023, when the result was 9.9. As with antibiotics usage, this primarily reflects the improvement in operations in Ireland and was due to several different factors, including feed composition and a focus on improvements in the bedding composition.
• Decreasing the climate impact in the form of CO² emissions from its own operations as well as across the value chain is a key priority at Scandi Standard. The result for the second quarter with regards to carbon intensity in own operations was 75.5 g CO2e/kg product which was 4 per cent lower year-on-year. The improvement was partly driven by updated emissions factors that reflect a general reduction in carbon dioxide emissions from the national electricity grids, but also by increased production volumes and a transition from propane to district heating in Norwegian operations.
• Critical complaints remain at a very low level and no critical complaints were reported in the second quarter of 2024.

Collaboration throughout the entire value chain – a prerequisite for sustainable food production

Scandi Standard became a member of the sustainable food supply chain initiative in the second quarter. The initiative is coordinated by the WWF and gathers leading companies that take active responsibility for transitioning and contributing to a considerably more sustainable food supply chain in Sweden by 2030. For Scandi Standard, this is a way to contribute and find solutions throughout the value chain, which is a prerequisite for more sustainable food production. An example of this is that just over 5 per cent of Scandi Standard's total climate impact derives from its own operations with the remainder coming from other parts of the value chain. As such, it is a key issue for other players involved to strive for a reduced impact in every stage of the value chain.

Sustainability Overview	Q2 2024	Q2 2023	Δ	H1 2024	H1 2023	Δ	2024 Target
LTI per million hours worked	34.0	28.8	18%	29.1	24.5	19%	22.5
Use of antibiotics (% of flocks treated)	1.6	10.6	-85%	5.3	9.7	-46%	7.2
Animal welfare indicator (foot score)	4.3	9.9	-57%	6.4	12.4	-48%	9.8
CO2 emissions (g CO2e/kg product)1)	75.5	78.3	-4%	76.1	77.8	-2%	72.6
Critical complaints	0	0	0%	0	0	0%	0
Feed efficiency (kg feed/live weight)	1.48	1.50	-1%	1.49	1.50	-1%	1.49

1) The reported carbon emissions figures have been adjusted through 2021 in accordance with Scandi Standard's recalculation policy due to a change in magnitude exceeding five per cent.

Segment: Ready-to-cook

MSEK		Q2 2024 Q2 2023	Δ	R12M	2023
Net sales	2,546	2,495	2%	9,696	9,577
EBITDA	181	139	31%	713	605
Depreciation	-74	-79	-5%	-299	-299
EBITA	107	60	78%	414	306
Amortisation	-9	-12	-22%	-39	-45
EBIT	98	48	103%	376	261
EBITDA margin, %	7.1%	5.6%	1.6ppt	7.4%	6.3%
EBITA margin, %	4.2%	2.4%	1.8ppt	4.3%	3.2%
EBIT margin, %	3.8%	1.9%	1.9ppt	3.9%	2.7%
Non-comparable items1)	-	-	-	8	8
Adj. EBITDA1)	181	139	31%	704	597
Adj. EBIT1)	98	48	103%	368	253
Adj. EBITDA margin, %1)	7.1%	5.6%	1.6ppt	7.3%	6.2%
Adj. EBIT margin, %1)	3.8%	1.9%	1.9ppt	3.8%	2.6%
LTI per million hours worked	37.1	31.7	17%	27.2	25.4
Animal welfare indicator	4.3	9.9	-57%	6.6	9.9
Critical complaints	0	0	0	0	0

1) Adjusted for non-comparable items, see note 5.

For definitions of key figures, see page 22.

Net sales within the Ready-to-cook (RTC) segment increased by 2 per cent from MSEK 2,495 to MSEK 2,546. The growth was primarily driven by increased sales in Foodservice, which saw a 20 per cent increase in net sales. Additionally, sales in Export and Industry/Other segments also increased. In fixed currency, net sales increased by 2 per cent, driven by volume.

All markets contributed to the net sales growth, except Denmark where net sales decreased by 12 per cent compared to the same period last year mainly driven by more balanced share of slow growing birds.

Sales of chilled products increased in most markets by a total of 2 per cent, while frozen products increased by 3 per cent.

Operating income (EBIT) for Ready-to-cook increased by 50 MSEK to MSEK 98 (48), corresponding to an operating income margin (EBIT margin) of 3.8 (1.9) per cent.

The volume growth had a positive effect on the quarter's operating result.

The decreased cost for input goods is mainly driven by lower cost for feed, but also a lower share of slow growing birds, which in turn has led to some price adjustments towards customers.

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

No non-comparable items were reported in the second quarter of 2024.

During the quarter, further investments have been made in automated deboning of leg and breast fillet. The investment increases the production capacity of deboned meat, thereby improving net sales value while keeping direct labour costs low.

Lost time injuries (LTI) for the Ready-to-cook segment amounted to 37.1 (31.7) per million hours worked during the second quarter, which is a deterioration of 17 per cent compared to the corresponding quarter last year. This is mainly due to the ammonia leak at one of the Danish sites, which resulted in 14 people being absent during the next work shift. The facility was evacuated according to procedures, and no one was injured in the incident. All other countries are below or in line with their targets for the year.

No critical complaints were reported for the Ready-to-cook segment during the second quarter.

Segment Ready-to-cook (RTC): s the Group's largest product category and consists of products that are either chilled or frozen and 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 sales 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 external net sales.

Segment: Ready-to-eat

MSEK		Q2 2024 Q2 2023	Δ	R12M	2023
Net sales	686	774	-11%	2,614	2,873
EBITDA	52	74	-29%	174	215
Depreciation	-14	-15	0	-57	-57
EBITA	38	59	-35%	117	158
Amortisation	-	-	-	-	-
EBIT	38	59	-35%	117	158
EBITDA margin, %	7.6%		9.5% -1.9ppt	6.7%	7.5%
EBITA margin, %	5.6%		7.7% -2.1ppt	4.5%	5.5%
EBIT margin, %	5.6%		7.7% -2.1ppt	4.5%	5.5%
Non-comparable items1)	-	-	-	-	-
Adj. EBITDA1)	52	74	-29%	174	215
Adj. EBIT1)	38	59	-35%	117	158
Adj. EBITDA margin, %1)	7.6%		9.5% -1.9ppt	6.7%	7.5%
Adj. EBIT margin, %1)	5.6%		7.7% -2.1ppt	4.5%	5.5%
LTI per million hours worked	15.5	10.7	45%	19.4	13.5
Critical complaints	0	0	0%	0	0

1) Adjusted for non-comparable items, see note 5.

For definitions of key figures, see page 22.

Net sales within the Ready-to-eat (RTE) segment decreased by 11 per cent from MSEK 774 to MSEK 686. In fixed currency, the net sales decreased by 11 per cent driven by decreased sales volumes.

Net sales in Denmark decreased by 26 per cent and is now representing 51 per cent of the RTE business. Net sales in Finland grew by 158 per cent driven by the acquisition of a production site in Honkajoki in the last quarter of 2023.

As previously communicated, an agreement with a larger customer outside our domestic markets has been terminated during the end of the second quarter of 2023. This impacted net sales in Foodservice, which decreased by 34 per cent.

Net sales in Retail grew by 17 per cent and constitutes 28 per cent of the net sales in the segment.

In parallel, net sales in Export grew by 43 per cent due to targeted efforts in acquiring new customers, partially offsetting the volume loss within Foodservices. The focus on rebuilding the order book continues and we are gradually replacing lost volumes with new profitable business.

Ready-to-eat: Change in EBIT Q2 2023 – Q2 2024 (MSEK)

Operating income (EBIT) for Ready-to-eat decreased by MSEK 21 to MSEK 38 (59) corresponding to an operating margin (EBIT margin) of 5.6 (7.7) per cent.

The lower operating income was driven by decreased sales volumes, as well as reduced production volumes in Denmark, which resulted in a lower coverage of fixed costs in production.

Compared to the second quarter of 2023, price reductions related to lower prices of input goods have been implemented, with the overall impact on profit being neutral. There has also been a shift in product mix, resulting in a positive impact on gross profit. Additionally, the aforementioned lower production volumes in Denmark negatively impact the cost of goods sold.

Other operating expenses increased, driven by wage inflation. At the same time, the second quarter of the previous year was positively impacted by an MSEK 11 insurance payment related to the fire at the Farre production facility.

No non-comparable items were reported in the second quarter of 2024.

Lost time injuries (LTI) for the Ready-to-eat segment amounted to 15.5 (10.7) per million hours worked during the second quarter, an increase compared to the corresponding quarter of the previous year but a decrease versus the first quarter of this year. Three accidents occurred during the quarter, and the relatively low number of worked hours resulted in a higher injury frequency.

No critical complaints were reported for the Ready-to-eat segment in the second 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 four RTE processing plants in Sweden, Denmark, Norway and Finland, combined with third-party production. Net sales for the segment consist of external net sales. The operating result includes the integrated result for the Group without internal margins.

Other

Ingredients

Net sales within the Ingredients segment amounted to MSEK 118 (142) with an operating income (EBIT) of MSEK 5 (24). The decreased operating income (EBIT) was mainly driven by lower market prices and a partially changed product mix within the Ingredients operations.

Group cost

Group costs of MSEK -15 (-11) were recognised in the Group operating income (EBIT).

Personnel

The average number of full-time employees in the second quarter 2024 was 3,412 (3,171)* and 3,335 (3,124)* in the first half of the year.

Average exchange rates

	2024–06	2023–06
DKK/SEK	1.53	1.52
NOK/SEK	0.99	1.00
EUR/SEK	11.39	11.32

Group results, financial position, and cash flow January – June 2024

Net sales decreased by 3 per cent to MSEK 6,510 (6,695). At constant exchange rates, net sales decreased by 3 per cent. Net sales in the Retail sales channel increased by 2 per cent, while net sales in Foodservice decreased by 22 per cent. Export sales increased by 12 per cent in the quarter, driven by targeted sales within Ready-to-eat.

Operating income (EBIT) for the Group amounted to MSEK 248 (213), corresponding to an operating margin (EBIT margin) of 3.8 (3.2) per cent.

The operating income in the Ready-to-cook segment was MSEK 194 (79), a clear improvement compared to the corresponding period last year. The increase was driven by measures implemented in several markets.

The operating income in the Ready-to-eat segment decreased to MSEK 63 (104) due to reduced sales and production volumes from a terminated contract with a major customer outside our home markets. The second quarter of last year was also positively affected by an MSEK 11 insurance compensation related to the fire incident in Farre in April 2022.

For Other operations, the result decreased compared to the previous year, due to lower market prices in the Ingredients business during the first and second quarters.

Finance net for the Group amounted to MSEK -71 (-64) related to interest expenses for interest-bearing liabilities of MSEK -34 (-38). In addition, the financial net consists of interest on leasing MSEK -6 (-7) and currency/other items of MSEK -31 (-20).

Tax expenses for the Group amounted to MSEK -37 (-32), corresponding to an effective tax rate of approximately 21 (21) percent, which is in line with expectations due to income development and the mix of tax rates between the different countries.

Group income for the period increased to MSEK 141 (117). Earnings per share were SEK 2.16 (1.95).

Net interest-bearing debt (NIBD) for the Group was MSEK 1,796, an increase of MSEK 225 from December 31, 2023. Operating cash flow in the first half of the year amounted to MSEK 99 (330). It was positively affected by strengthened EBITDA, but negatively affected by increased net capital expenditure and an increase in working capital. The increase in working capital was mainly driven by lower trade payables and higher trade receivables, offset by lower inventory. The total interest-bearing net debt was also negatively impacted by dividends and the acquisition of a cutting and packaging facility in Jaeren which Scandi Standard previously leased but positively affected by changes in lease assets related to the Jaeren acquisition.

Total equity attributable to the parent company's shareholders as of June 30, 2024 amounted to MSEK 2,522 (2,444). The equity to assets ratio amounted to 36.3 (32.7) per cent. Return on equity was 11.4 (11.0) per cent.

The financial target for the Group's margin is to exceed per cent in the medium term. During the first half of the year, the company achieved an operating margin of 3.8 (3.2) per cent, which is an improvement over the full year 2023 level and a step on the way to the target for 2027.

The financial target for the Group´s net interest-bearing debt to EBITDA is <2.5x. The outcome as of June 30, 2024 was 2.0x (2.4x), which is better than the target range for the Group.

he financial target for the Group's net sales is an annual average organic growth (5-year average) of 5-7 per cent, reported on annual basis.

The financial target for return on capital employed (ROCE) should amount to 15 per cent in the medium term. The outcome for the first half of the year was 10.8 (9.3) per cent.

In addition to these, the Group has a target for operating profit per processed kg (GW) of >3 SEK/kg. The outcome for the first half of the year was SEK 1.78 (1.62) SEK/kg.

Net Sales and Operating Income (EBIT)2)

MSEK	H1 2024	H1 2023	R12M	2023
Net sales	6,510	6,695	12,829	13,014
EBITDA	456	426	910	880
Depreciation	-188	-187	-378	-376
EBITA	267	239	532	503
Amortisation	-19	-25	-41	-47
EBIT2)	248	213	492	457
EBITDA margin, %	7.0%	6.4%	7.1%	6.8%
EBITA margin, %	4.1%	3.6%	4.1%	3.9%
EBIT margin, %	3.8%	3.2%	3.8%	3.5%
Non-comparable items2)	-	-	8	8
Adj. EBITDA2)	456	426	901	871
Adj. EBIT2)	248	213	484	449
Adj. EBITDA margin, %2)	7.0%	6.4%	7.0%	6.7%
Adj. EBIT margin, %2)	3.8%	3.2%	3.8%	3.4%
Chicken processed (tonne gw)3)	139,342	132,085	277,037	269,780
EBIT/kg3)	1.78	1.62	1.78	1.69

1) For specific explanatory items, see note 6.

2) Adjusted for non-comparable items, see note 5.

3) Previously reported figures showed live weight, tonne. Historical data converted by a factor of 0.72.

Change in EBIT per segment H1 2023 – H1 2024 (MSEK)

Finance net and tax expenses

MSEK	H1 2024	H1 2023	R12M	2023
Finance income	2	2	3	4
Finance expenses	-73	-67	-134	-128
Finance net	-71	-64	-131	-124
Income after finance net	178	149	361	333
Income tax expenses	-37	-32	-65	-59
Income tax expenses %	-21%	-21%	-18%	-18%
Income for the period	141	117	297	273
Earnings per share, SEK	2.16	1.95	4.33	4.11

Net-interest-bearing debt (NIBD)

MSEK	H1 2024	H1 2023	R12M	2023
Opening balance NIBD	1,571	1,983	1,976	1,983
EBITDA	456	426	910	880
Change in working capital	-128	35	65	228
Net capital expenditure	-191	-83	-446	-338
Other operating items	-38	-48	-88	-99
Operating cash flow	99	330	441	671
Paid finance items, net	-66	-61	-138	-132
Paid tax	-42	-72	-24	-54
Dividend	-75	-75	-75	-75
Acquired and divested
operations/assets	-187	-	-61	126
Other items1)	46	-116	38	-124
Decrease (+) / increase (-) NIBD	-225	6	180	412
Closing balance NIBD	1,796	1,976	1,796	1,571
1) Other items mainly include currency exchange effects and net changes in lease assets.

Financial targets	H1 2024	H1 2023	R12M	2023	Target
Net Sales1)				7%	5–7%
EBIT margin	3.8%	3.2%	3.8%	3.5%	>6%
EBIT/kg	1.78	1.62	1.78	1.69	>3 SEK
ROCE	10.8%	9.3%	10.8%	11.0%	>15%
NIBD/EBITDA	2.0x	2.4x	2.0x	1.8x	<2.5x

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

Other information

Risks and uncertainties

Scandi Standards' risks and uncertainties are described on pages – 36, pages 62 – 65 and pages 83 – 113 in the Annual Report 2023, which is available at www.scandistandard.com.

No other risk or significant changes have been added for the Group or the parent company, compared to the information given in the Annual Report 2023.

Events after the close of the period

No significant events after the close of the period.

Other significant events

Annual General Meeting

At the annual general meeting in Scandi Standard on 3 May 2024, it was resolved in accordance with all submitted proposals including, among other things, a dividend of SEK 2.30 per share, re-election of Öystein Engebretsen, Henrik Hjalmarsson, Cecilia Lannebo, Pia Gideon and Paulo Gaspar as board members as well as Johan Bygge as board member and chairman of the board and Sebastian Backlund and Lars-Gunnar Edh as a new board member. Further, it was resolved on reelection of PwC as auditor, implementation of a long-term incentive program (LTIP 2024), authorisation for the board to resolve on issues, acquisitions and transfers of ordinary shares.

Board of Director's assurance

This interim report for the second quarter and first half of 2024 provides a fair overview of the operations, position, and results of the Parent Company and the Group, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group.

_____________________________________________________________________________________________________________________

Stockholm, July 17, 2024

Johan Bygge Chairman of the Board

Sebastian Backlund

Lars-Gunnar Edh Board member Board member Board member

Øystein Engebretsen

Paulo Gaspar

Pia Gideon Board member Board member Board member

Henrik Hjalmarsson

Cecilia Lannebo Board member

Jonas Tunestål Managing director and CEO

The interim report has not been subject to review by the Company's auditors. This is a translation of the original Swedish version published on www.scandistandard.com

Consolidated income statement

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Net sales	3,350	3,411	6,510	6,695	12,829	13,014
Other operating revenues	12	16	14	19	33	37
Changes in inventories of finished goods and work-in
progress	-65	-120	-73	-76	-95	-98
Raw materials and consumables	-1,978	-2,055	-3,896	-4,217	-7,786	-8,108
Cost of personnel	-681	-635	-1,312	-1,210	-2,532	-2,430
Depreciation, amortisation, and impairment	-104	-109	-207	-212	-419	-424
Other operating expenses	-407	-386	-788	-785	-1,538	-1,535
Share of income of associates	-	-	-	-	1	1
Operating income	127	121	248	213	492	457
Finance income	1	1	2	2	3	4
Finance expenses	-37	-34	-73	-67	-134	-128
Income after finance net	90	88	178	149	361	333
Tax on income for the period	-19	-14	-37	-32	-65	-59
Income for the period	71	74	141	117	297	273
Whereof attributable to:
Shareholders of the Parent Company	71	73	141	127	283	269
Non-controlling interests	-	1	-	-10	14	4
Average number of shares	65,327,164	65,327,164	65,327,164	65,327,164	65,327,164	65,327,164
Earnings per share, SEK
	1.09	1.11	2.16	1.95	4.33	4.11
Earnings per share after dilution, SEK	1.09	1.11	2.16	1.95	4.33	4.11
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	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Income for the period	71	74	141	117	297	273
Other comprehensive income
Items that will not be reclassified to the income statement
Actuarial gains and losses in defined benefit pension plans	-3	7	12	8	-11	-15
Tax on actuarial gains and losses	1	-1	-2	-2	2	3
Total	-3	6	9	6	-9	-12
Items that will or may be reclassified to the income statement
Cash flow hedges	12	5	-4	-43	-63	-102
Currency effects from conversion of foreign operations	-28	104	54	107	-90	-38
Income from currency hedging of foreign operations	5	-23	-6	-19	17	4
Tax attributable to items that will be reclassified to the income statement	-2	-1	1	9	13	20
Total	-14	85	46	54	-124	-116
Other comprehensive income for the period, net of tax	-16	91	55	60	-132	-128
Total comprehensive income for the period	55	164	196	177	164	146
Whereof attributable to:
Shareholders of the Parent Company	55	163	196	187	150	141
Non-controlling interests	-	1	-	-10	14	4

Consolidated balance sheet

MSEK	Note	June 30, 2024	June 30, 2023	December 31, 2023
ASSETS
Non-current assets
Goodwill		965	983	950
Other intangible assets		979	949	933
Property plant and equipment		2,183	1,982	1,958
Right-of-use assets		299	468	373
Participation in associated companies		52	53	51
Surplus in funded pensions		67	75	55
Derivative instruments financial	3	8	16	7
Derivative instruments operational	3	-	5	-
Financial assets	3	14	4	14
Deferred tax assets		87	88	82
Total non-current assets		4,653	4,622	4,422
Current assets
Biological assets		129	121	121
Inventory		746	873	815
Trade receivables	3	1,202	1,294	1,044
Other short-term receivables	3	63	94	112
Prepaid expenses and accrued income		110	175	130
Derivative instruments financial	3	-	9	3
Derivative instruments operational	3	-	13	-
Cash and cash equivalents	3	43	279	4
Total current assets		2,293	2,857	2,230
TOTAL ASSETS		6,946	7,479	6,652
EQUITY AND LIABILITIES
Shareholder's equity
Share capital		1	1	1
Other contributed equity		496	571	571
Reserves		285	408	238
Retained earnings		1,741	1,465	1,588
Capital and reserves attributable to owners		2,522	2,444	2,398
Non-controlling interests		-	-8	0
Total equity		2,522	2,436	2,397
Liabilities
Non-current liabilities
Non-current interest-bearing liabilities	3	1,539	1,789	1,198
Non-current leasing liabilities		244	401	311
Derivative instruments operational	3	10	-	13
Provisions for pensions		3	3	3
Other provisions		12	13	12
Deferred tax liabilities		166	192	163
Other non-current liabilities		74	76	73
Total non-current liabilities		2,049	2,473	1,773
Current liabilities
Current leasing liabilities		64	89	76
Derivative instruments operational	3	18	-	14
Trade payables	3	1,510	1,733	1,620
Tax payables		54	37	66
Other current liabilities		33	34	18
Accrued expenses and prepaid income		698	678	688
Total current liabilities		2,375	2,570	2,482
TOTAL EQUITY AND LIABILITIES		6,946	7,479	6,652

Consolidated statement of changes in equity

	Equity attributable to shareholders of the Parent Company
						Equity attributable to
			Other			shareholders	Non
MSEK	Note	Share capital	contributed equity	Reserves	Retained earnings	of the Parent Company	controlling interests	Total equity
Opening balance January 1, 2023		1	646	354	1,331	2,331	2	2,334
Income for the year					269	269	4	273
Other comprehensive income for the year, net after tax				-116	-12	-128	-	-128
Total comprehensive income				-116	257	141	4	146
Dividend			-75			-75		-75
Long-term incentive program (LTIP)					0	0		0
Changes in non-controlling interests							-6	-6
Total transactions with the owners		-	-75	-	0	-75	-6	-82
Closing balance December 31, 2023		1	571	238	1,588	2,398	0	2,397
Opening balance January 1, 2024		1	571	238	1,588	2,398	0	2,397
Income for the period					141	141		141
Other comprehensive income, net after tax				46	9	55		55
Total comprehensive income		-	-	46	150	196	-	196
Dividend			-75			-75		-75
Long-term incentive program (LTIP)					4	4		4
Repurchase of own shares
Changes in non-controlling interests
Total transactions with the owners		-	-75	-	4	-72	-	-72
Closing balance June 30, 2024		1	496	285	1,741	2,522	0	2,522

Consolidated statement of cash flows

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
OPERATING ACTIVITIES
Operating income	127	121	248	213	492	457
Adjustment for non-cash items	106	110	213	216	422	425
Paid finance items, net	-33	-29	-66	-61	-138	-132
Paid current income tax	-36	-36	-42	-72	-24	-54
Cash flow from operating activities before changes in
operating capital	164	165	353	296	752	695
Changes in inventories and biological assets	65	120	73	76	92	95
Changes in operating receivables	-1	-28	-83	-150	107	40
Changes in operating payables	-2	28	-118	108	-134	93
Changes in working capital	61	120	-128	35	65	228
Cash flow from operating activities	225	285	225	331	817	923
INVESTING ACTIVITIES
Acquisition and divestment of operations/asset	-187	-	-187	-	-221	-34
Investments in rights of use assets	0	0	0	0	-1	-1
Investments in intangible assets	-28	-16	-56	-16	-124	-84
Investment in property, plant, and equipment	-78	-33	-135	-67	-322	-254
Cash flows used in investing activities	-292	-49	-377	-83	-668	-373
FINANCING ACTIVITIES
New loan	189	-	189	184	189	184
Repayment loan	-	-	-	-	-561	-561
Change in overdraft facility	9	-	132	-3	151	16
Payments for amortisation of leasing liabilities	-20	-30	-43	-52	-91	-100
Dividend	-75	-75	-75	-75	-75	-75
Other	2	-7	-11	-28	-2	-18
Cash flows in financing activities	105	-112	191	26	-389	-554
Cash flows for the period	38	124	39	274	-240	-4
Cash and cash equivalents at beginning of the period	4	151	4	3	279	3
Currency effect in cash and cash equivalents	1	3	0	2	4	6
Cash flow for the period	38	124	39	274	-240	-4
Cash and cash equivalents at the end of the period	43	279	43	279	43	4

Parent Company income statement

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Net sales	-	-	-	-	-	-
Operating expenses	0	0	0	0	0	0
Operating income	0	0	0	0	0	0
Finance net	1921)	-1	193	0	192	-1
Income after finance net	192	-1	192	0	192	-1
Group contribution	-	-	-	-	0	0
Tax on income for the period	0	0	0	0	0	-
Income for the period			193	0	192
1)Mainly regarding dividend from subsidiaries	192	-1				-1

Parent Company statement of comprehensive income

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Income for the period	192	-1	193	0	192	-1
Other comprehensive income for the period, net of tax	-	-	-	-	-	-
Total comprehensive income for the period	192	-1	193	0	192	-1

Parent Company balance sheet

MSEK Note	June 30, 2024	June 30, 2023	December 31, 2023
ASSETS
Non-current assets
Investments in subsidiaries	938	938	938
Total non-current assets	938	938	938
Current assets
Receivables from Group entities	141	24	24
Other short-term receivables	0	0	0
Cash and cash equivalents	0	0	0
Total current assets	141	24	24
TOTAL ASSETS	1,079	962	962
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	1	1	1
Non-restricted equity
Share premium account	495	570	570
Retained earnings	391	392	392
Income for the period	193	0	-1
Total equity	1,079	962	961
Current liabilities
Tax payables	-	-	-
Accrued expenses and prepaid income	-	-	0
Total current liabilities	-	-	0
TOTAL EQUITY AND LIABILITIES	1,079	962	962

Parent Company statement of changes in equity

MSEK
Opening balance January 1, 2023	1,037
Income for the year	-1
Other comprehensive income for the year, net after tax	-
Total comprehensive income	-1
Dividend	-75
Total transactions with the owners	-75
Closing balance December 31, 2023	961
Opening balance January 1, 2024	961
Income for the period	193
Other comprehensive income for the period, net after tax	-
Total comprehensive income	193
Dividend	-75
Total transactions with the owners	-75
Closing balance June 30, 2024	1,079

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. he arent 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. The application of the accounting and valuation principles is consistent with those described in Note 1 of the Annual Report 2023. IFRS standards and interpretations that have been changed or added and have become effective during 2024 have not had any material impact on the group's financial statements.

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 2024 decided on a long-term incentive program (LTIP 2024) for key employees to the Annual General Meeting 2024. The program is designed to promote the long-term value growth of the company and the Group, and to increase alignment between the interests of the individuals participating in the program and the company's shareholders. n order to further promote the company's and the Group's long-term value creation and to align the interests of the participant with the company's shareholders, LTIP 2024 has been increased with two performance shares and has otherwise essentially the same structure as the long-term incentive program adopted at the annual general meeting 2023 (LTIP 2023). The programs, which are equity-settled, share-based compensation plans are accounted for in accordance with IFRS 2, Share based Payments, and 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 cash-settled instruments. or more information about the Group's long-term incentive programs, see Notes 1 and 5 in the Annual Report 2023.

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 organisation, i.e. managers are held responsible both for product segments and geographical markets. 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, as well as corporate functions, are recognised as Other.

he 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 and 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 sales 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 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 includes four production plants for RTE in Sweden, Denmark, Norway and Finland, 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 to utilize the animal entirely as it contributes to minimised production waste and 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	H1 2024	H1 2023	H1 2024	H1 2023	H1 2024	H1 2023	H1 2024	H1 2023
Net Sales	4,987	4,868	1,280	1,539	243	287	6,510	6,695
Operating income (EBIT)	194	79	63	104	-8	30	248	213
Non-comparable items4)	-	-	-	-	-	-	-	-
Adjusted EBIT4)	194	79	63	104	-8	30	248	213
Share of income of associates							-	-
Finance income							2	2
Finance expenses							-73	-67
Tax on income for the period							-37	-32
Income for the period							141	117

1) Includes feed in Ireland, hatching in Sweden, 100% consolidation of the 51% owned entity Rokkedahl Food Aps in Denmark until 18th of July 2023. 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 5.

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 June 2024 and for the comparison period, are shown in the tables below.

		Derivatives used in hedge
June 30 2024, MSEK	Valued at amortised cost	accounting¹
Assets
Other non-current financial assets	14	-
Trade receivables	1,202	-
Other short-term receivables	11	-
Derivatives instruments, financial	-	8
Derivatives instruments, operational	-	-
Cash and cash equivalents	43	-
Total financial assets	1,270	8
Liabilities
Non-current interest-bearing liabilities	1,539	-
Other non-current liabilities	-	-
Derivatives instruments, financial	-	-
Derivatives instruments, operational	-	28
Current interest-bearing liabilities	-	-
Other current liabilities	-	-
Trade and other payables	1,510	-
Total financial liabilities	3,048	28

	Derivatives used in hedge
June 30 2023, MSEK	Valued at amortised cost	accounting¹
Assets
Other non-current financial assets	4	-
Trade receivables	1,294	-
Derivatives instruments, financial	-	24
Derivatives instruments, operational	-	18
Cash and cash equivalents	279	-
Total financial assets	1,577	42
Liabilities
Non-current interest-bearing liabilities	1,789	-
Other non-current liabilities	-	-
Derivative instruments	-	-
Current interest-bearing liabilities	-	-
Other current liabilities	-	-
Trade and other payables	1,733	-
Total financial liabilities	3,521	-

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 June 2024, and at the end of the comparison period the Group had financial derivatives (level 2) measured at fair value on the balance sheet. Interest rate swaps are valued using estimates of future discounted cash flows while the fair value of energy hedge contracts (operational derivates) is estimated based on current forward rates at the reporting date. As of 30 June 2024, the financial derivatives amounted to MSEK 8 (24) and the operational derivatives amounted to MSEK -28 (18).

For the Group's long-term borrowing, which as of 30 June 2024 amounted to MSEK 1,539 (1,789), 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.

Note 4. 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		Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Net sales	A	3,350	3,411	6,510	6,695	12,829	13,014
Income for the period	B	71	74	141	117	297	273
+ Reversal of tax on income for the year		19	14	37	32	65	59
Income after finance net	C	90	88	178	149	361	333
+ Reversal of financial expenses		37	34	73	67	134	128
- Reversal of financial income		-1	-1	-2	-2	-3	-4
Operating income (EBIT)	D	127	121	248	213	492	457
+ Reversal of depreciation, amortisation and
impairment		104	109	207	212	419	424
+ Reversal of share of income of associates		-	-	-	-	-1	-1
EBITDA	E	231	230	456	426	910	880
Non-comparable items in income for the period (EBIT)	F	-	-	-	-	-8	-8
Adjusted income for the period (Adj. EBIT)	D+F	127	121	248	213	484	449
Adjusted operating margin (Adj. EBIT margin)	(D+F)/A	3.8%	3.5%	3.8%	3.2%	3.8%	3.4%
Non-comparable items in EBITDA	G	-	-	-	-	-8	-8
Adjusted EBITDA	E+G	231	230	456	426	901	871
Adjusted EBITDA margin %	(E+G)/A	6.9%	6.7%	7.0%	6.4%	7.0%	6.7%

From Statement of Cash Flow, MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Operating activities
Operating income (EBIT)	127	121	248	213	492	457
Adjustment for non-cash items
+ Depreciation, amortisation and impairment	104	109	207	212	419	424
- Share of income of associates	-	-	-	-	-1	-1
EBITDA	231	230	456	426	910	880
Non-comparable items in EBITDA	G -	-	-	-	-8	-8
Adjusted EBITDA	231	230	456	426	901	871

From Balance Sheet, MSEK		June 30, 2024	June 30, 2023	December 31, 2023
Total assets		6,946	7,479	6,652
Non-current non-interest-bearing liabilities
Deferred tax liabilities		-166	-192	-163
Other non-current liabilities		-74	-76	-73
Total non-current non-interest-bearing liabilities		-241	-267	-236
Current non-interest-bearing liabilities
Trade payables		-1,510	-1,733	-1,620
Tax payables		-54	-37	-66
Other current liabilities		-33	-34	-18
Accrued expenses and prepaid income		-698	-678	-688
Total current non-interest-bearing liabilities		-2,294	-2,481	-2,392
Capital employed		4,412	4,731	4,024
Less: Cash and cash equivalents		-43	-279	-4
Operating capital		4,368	4,452	4,020
Average capital employed	H	4,571	4,597	4,188
Average operating capital	I	4,410	4,246	4,184
Operating income (EBIT), R12M	J1	492	425	457
Adjusted operating income (Adj. EBIT), R12M	J2	484	425	449
Financial income	K	3	3	4
Return on capital employed	(J1+K)/H	10.8%	9.3%	11.0%
Return on operating capital	J2/I	11.2%	10.0%	10.9%
Interest bearing liabilities
Non-current interest-bearing liabilities		1,539	1,789	1,198
Non-current leasing liabilities		244	401	311
Derivates financial		-8	-24	-10
Current leasing liabilities		64	89	76
Total interest-bearing liabilities		1,839	2,255	1,575
Less: Cash and cash equivalents		-43	-279	-4
Net interest-bearing debt		1,796	1,976	1,571

Note 5. 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. he Group's alternative performance measures ad usted D ad usted 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	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Divestment of majority stake in Rokkedahl Food Aps		-		-	8	8
Total		-		-	8	8

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

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Ready-to-cook		-		-	8	8
Total		-		-	8	8

Note 6. 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 ordinary business operations. Disclosures about these items are provided to facilitate the understanding and assessment of the financial result. hese items are not ad usted for in the Group's and the segment's alternative performance measures. adjusted EBITDA. adjusted EBITA and adjusted operating income (adjusted EBIT).

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

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Energy support 1)	-	12	-	12	3	15
Special payroll taxes 2)	-	-11	-	-11	-	-11
Insurance compensation for fire incident in Farre 3)	-	11	-	11	-	11
Total	-	12	-	12	3	16

1) Governmental Energy support in Sweden " lstöd" due to high energy prices.

2) One-time correction of special payroll taxes for pensions in Sweden.

3) Insurance compensation for the fire incident in Farre. Denmark in April 2022.

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

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023	R12M	2023
Ready-to-cook	-	1	-	1	3	4
Ready-to-eat	-	11	-	11	1	12
Total	-	12	-	12	3	16

Not 7. Acquisition of asset

On April 2, 2024, Scandi Standard acquired the cutting and packaging facility in Jaeren, Norway, which was previously rented. The purchase price was MNOK 188 and the Group's book lease value was . he investment is strategically important to ensure long-term production and increased profitability. Otherwise, the acquisition does not significantly affect other financial comparative figures.

Acquired assets and liabilities at fair value

MSEK	30 June 2024
Cash and cash equivalents	0
Tangible fixed assets	193
Deferred tax	-5
Current liabilities	-2
Identified assets and liabilities	187

Cash impact of acquisition

MSEK	30 June 2024
Cash payment	187
Cash and cash equivalents acquired operations	-0
Total	187

Definitions

Adjusted income for the period Income for the period adjusted for noncomparable items.

Animal welfare indicator (foot score) Leading industry indicator for animal welfare. The score is measured according to industry standards, meaning assessing 100 feet per flock independent of flock size.

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.

Critical complaints

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

CO2e/kg product

Location-based method used for calculations. Emission factors from DEFRA 2020–2022, AIB 2021, and Energiföretagen 2020. Includes approximately 80% of Scope 1 and Scope 2 emissions for Scandi Standard Group, with exception for technical gases, refrigerants and owned and leased vehicles that are reported yearly.

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.

EBIT/kg

Operating income divided by processed chicken kg

Adjusted operating income (Adj. EBIT) Operating income (EBIT) adjusted for noncomparable 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 per centage 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 noncomparable items.

EBITDA margin

EBITDA as a per centage of net sales.

Adjusted EBITDA margin Adjusted EBITDA as a per centage of net sales.

Feed conversion rate (kg feed/kg live

weight)

Includes only conventional chicken breeds (approximately 70% of the production). The figures are based on farmer's reported figures in all countries except in Sweden, where estimated country averages are used.

Grill weight, tonne

Grill weight is the weight of the gutted bird

LTI per million hours worked Injuries lead to absence at least the next day, per million hours worked.

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 ordinary business operations. and hence are unlikely to occur again.

Operating capital

Total assets less cash and cash equivalents and non-interest-bearing 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 per centage of net sales.

Adjusted operating margin (Adj. EBIT margin)

Adjusted operating income (Adj. EBIT) as a per centage 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 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

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 is useful to understand and assess the performance of the business.

Working capital

Total inventory and operating receivables less non-interest-bearing current liabilities.

Conference Call

A conference call for investors. analysts and media will be held on 17 July 2024 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 afterward.

Further information

For further information. please contact:

Jonas Tunestål. Managing director and CEO and Fredrik Sylwan. CFO Tel: +46 10 456 13 00 Henrik Heiberg. Head of M&A. Financing & IR

Tel: +47 917 47 724

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 17 July 2024.

Financial calendar

Interim report for Q3 2024	October 25. 2024
Interim report for Q4 2024	February 6. 2025
Interim report for Q1 2025	April 29. 2025

Forward-looking statement

This report contains forward-looking information based on the current expectations of company management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared with what is stated in the forward-looking information, due to such factors as, but not limited to, changed conditions regarding finances, market and competition, supply and production constraints, changes in legal and regulatory requirements and other political measures, and fluctuations in exchange rates.

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 3.200 employees with annual sales of more than SEK 13 billion.

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