Schouw & Co. — Interim / Quarterly Report 2020

Nov 5, 2020

Statement by Jens Bjerg Sørensen, President and CEO:

The positive effects of the diversified nature of the business activities and the spreading of risk in the Schouw & Co. conglomerate were evident once again in the third quarter. Despite the global uncertainties caused by the coronavirus situation, our quarterly revenue surpassed the DKK 6 billion mark for the first time ever and we are delivering the best quarterly EBITDA performance in company history.

Schouw & Co. is well positioned, and our businesses have shown their ability to adapt as well as resilience to economic fluctuations. I'm very pleased that we are now guiding for full-year 2020 EBITDA exceeding the figure we were expecting at the beginning of the year.

2020 INTERIM REPORT THIRD QUARTER COMPANY ANNOUNCEMENT NO. 8 5 NOVEMBER 2020

• Financial highlights 02
  • Interim report 03
    • Outlook 05
• Management statement 06
  • Our businesses 07
  • Income statement 18
    • Balance sheet 19
  • Cash flow statement 20
• Statement of changes in equity 21
• Notes to the financial statements 22

HIGHLIGHTS

• Strong Q3 performance with revenue and EBITDA improving
• Strengthened positive cash flows from operations and debt sharply reduced
• Diversified operations mitigating effects of coronavirus implications
• Growing and developing the business still a high priority
• Guidance raised for full-year revenue and EBITDA

Financial highlights and key ratios

This is a translation of Schouw & Co.'s Interim Report for the nine months ended 30 September 2020. The original Danish text shall be controlling for all purposes, and in case of discrepancy, the Danish wording shall be applicable.

GROUP SUMMARY (DKKm)	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
REVENUE AND INCOME
Revenue	6,060	5,872	15,800	15,517	20,946
EBITDA	676	621	1,626	1,441	1,951
Depreciation and impairment losses	211	200	624	595	802
EBIT	465	421	1,002	846	1,149
Profit/loss after tax in associates and joint ventures	-44	11	-35	33	50
Gains on equity divestments	0	0	2	29	29
Net financials	-30	-20	-94	-65	-79
Profit before tax	391	411	875	843	1,149
Profit for the period	296	316	658	657	906
Cash flows
Cash flows from operating activities	1,079	724	1,867	952	1,410
Cash flow from investing activities	-159	-170	-373	-810	-1,043
Of which investment in property, plant and equipment	-154	-203	-366	-570	-774
Cash flows from financing activities	-840	-541	-1,329	-123	-421
Cash flows for the period	79	14	166	19	-54
Invested capital and financing
Invested capital (ex. goodwill)	9,493	10,533	9,493	10,533	10,510
Total assets	18,379	19,487	18,379	19,487	18,777
Working capital	3,172	3,795	3,172	3,795	3,738
Net interest-bearing debt (NIBD)	2,190	3,553	2,190	3,553	3,298
Share of equity attributable to shareholders of Schouw & Co.	9,444	9,247	9,444	9,247	9,519
Non-controlling interests	-1	5	-1	5	2
Total equity	9,444	9,252	9,444	9,252	9,521
Financial data
EBITDA margin (%)	11.2	10.6	10.3	9.3	9.3
EBIT margin (%)	7.7	7.2	6.3	5.5	5.5
EBT margin (%)	6.5	7.0	5.5	5.4	5.5
Return on equity (%)	9.8	10.2	9.8	10.2	10.0
Equity ratio (%)	51.4	47.5	51.4	47.5	50.7
ROIC excluding goodwill (%)	14.2	12.8	14.2	12.8	12.3
ROIC including goodwill (%)	11.4	10.3	11.4	10.3	10.0
NIBD/EBITDA ratio	1.0	1.9	1.0	1.9	1.7
Average no. of employees	9,305	9,756	9,383	9,738	9,683
Per share data
Earnings per share (of DKK 10)	12.36	13.31	27.61	27.73	38.27
Diluted earnings per share (of DKK 10)	12.36	13.30	27.59	27.71	38.27
Net asset value per share (of DKK 10)	393.85	388.59	393.85	388.59	397.34
Share price, end of period (per share DKK 10)	616.00	478.80	616.00	478.80	560.00
Price/Net asset value	1.56	1.23	1.56	1.23	1.41
Market capitalisation at year end	14,771	11,394	14,771	11,394	13,415

EBITDA, third quarter

(DKKm)

EBIT, third quarter

Interim report – Third quarter 2020

Strong Q3 performance with revenue and EBITDA improving. Successfully capitalised on business opportunities. Strengthened positive cash flows from operations and debt sharply reduced. Growing and developing the business still a high priority.

Financial performance

(DKKm)	Q3 2020	Q3 2019		Change
Revenue		6,060 5,872	188	3%
EBITDA	676	621	55	9%
EBIT	465	421	44	11%
Associates and JVs	-44	11	-54	-510%
Profit before tax	391	411	-20	-5%
Cash flows from operating activities	1,079	724	355	49%
(DKKm)	YTD 2020	YTD 2019	Change
Revenue		15,800 15,517	283	2%
EBITDA		1,626 1,441	185	13%
EBIT	1,002	846	156	18%
Associates and JVs	-35	33		-68 -207%
Profit before tax	875	843	32	4%
Cash flows from operating activities	1,867	952	915	96%
Net interest-bearing debt		2,190 3,553 -1,363		-38%
Working capital		3,172 3,795 -623		-16%
ROIC excluding goodwill		14.2% 12.8%	1.4pp
ROIC including goodwill		11.4% 10.3%	1.1pp

The Schouw & Co. Group had a good third quarter of 2020, even though the Group's portfolio companies are still affected by the coronavirus situation in different ways. The nature of the Group's industry structure ensures diversified risk, and the portfolio businesses have adjusted their operations in ways to successfully capitalise on business opportunities that have arisen.

Consolidated revenue improved by 3% to DKK 6,060 million in Q3 2020 from DKK 5,872 million in Q3 2019. The increase was driven by increased revenue in BioMar, GPV and Fibertex Nonwovens. Fibertex Personal Care reported improved volume sales, but also a drop in revenue due to lower prices of raw materials and, as a result, lower selling prices, while HydraSpecma and Borg Automotive both reported slightly lower revenue than in Q3 2019.

EBITDA was up by 9% from DKK 621 million in Q3 2019 to DKK 676 million in Q3 2020. The improvement was attributable in particular to Fibertex Nonwovens and GPV, but all portfolio businesses contributed with the exception of BioMar. The Group's businesses have to a moderate extent received wage compensation for their employees, primarily in countries other than Denmark.

The aggregate share of profit/loss after tax in associates and joint ventures was a loss of DKK 44 million in Q3 2020, compared with an aggregate profit of DKK 11 million in Q3 2019. In both periods, the share of profit or loss was from BioMar's associates and joint ventures, and this year's decline was predominantly attributable to a drop in Salmones Austral's earnings due to significantly lower settlement prices for farmed salmon.

Consolidated net financial items were an expense of DKK 30 million in Q3 2020, compared with a DKK 20 million expense in Q3 2019. The larger expense was mainly the result of several negative foreign exchange adjustments, etc. in Q3 2020 than last year, whereas actual net interest expenses fell to DKK 16 million compared with DKK 26 million in Q3 2019.

ROIC excluding goodwill improved from 13.4% at 30 June 2020 to 14.2% at 30 September 2020, driven mainly by the profit improvement and the reduced working capital.

Liquidity and capital resources

The Group's operations generated a cash inflow of DKK 1,079 million in Q3 2020, compared with DKK 724 million in Q3 2019. The improvement was driven especially by BioMar, but the two Fibertex businesses and Borg Automotive also contributed. Only GPV and HydraSpecma reported a drop in cash flows from operations. DKK 125 million of the improvement was due to extended deadlines for paying in VAT and employee income taxes, etc. caused by the coronavirus situation. Cash flows for investing activities in Q3 2020 amounted to DKK 159 million, against DKK 170 million in Q3 2019.

The consolidated net interest-bearing debt was reduced from DKK 3,046 million at 30 June 2020 to DKK 2,190 million at 30 September 2020. Accordingly, the key credit ratio NIBD/EBITDA improved from 1.5 at 30 June 2020 to 1.0 at 30 September 2020.

Working capital fell from DKK 3,681 million at 30 June 2020 to DKK 3,172 million at 30 September 2020. The reduction in working capital was mainly attributable to BioMar, but all the other businesses either reduced or kept their working capital unchanged.

Group developments

Since the first quarter of 2020, the companies of the Schouw & Co. Group have worked to align their businesses to a situation in which coronavirus is a part of day-to-day operations. This is a comprehensive task, given the fact that the Group operates production facilities in 29 countries and sells its products in more than 100 countries but, at the same time, the diverse nature of the portfolio companies has shown the strength of the conglomerate.

The Group's businesses have truly managed to incorporate the necessary precautions to tackle the coronavirus situation in their day-to-day operations, and the Group managed to maintain near-normal operations and its usual service levels throughout the quarter. The primary objective of the strategy for addressing the coronavirus situation has been, first of all, to organise good and safe working conditions for the employees and, next, to keep operations as near-normal as possible. Generally, these efforts have produced better-than-expected results, and several of the businesses have seen new and attractive business opportunities.

Interim report – Third quarter 2020

The consolidated cash flows from operations have been strong, both in the third quarter and for the year to date. Combined with a moderate investment rate, this has enabled the Group to sharply reduce its debt. However, growing and developing the businesses remains an important objective, and the Group's portfolio companies are currently working on a number of significant capacity-increasing investments. Also, Borg Automotive signed an agreement in the third quarter of 2020 to acquire the turbocharger operations from Spanish remanufacturing company Turbo Motor Inyección (TMI).

The following is a brief review of other business developments in the portfolio companies during the quarter.

BioMar reported a good third quarter with improved revenue driven mainly by higher volume sales in the Salmon division. Reported EBITDA fell relative to the year-earlier period, mainly due to unfavourable exchange rate developments.

Fibertex Personal Care reported an improvement in volume sales and a strong profit. However, revenue was down due to a drop in selling prices driven by lower prices of raw materials.

Fibertex Nonwovens reported strong improvements in revenue and EBITDA as volume sales to the automotive industry stabilised and thanks to healthy demand from other segments.

GPV reported strong revenue and EBITDA improvements driven by growing demand from certain segments, including MedTech.

HydraSpecma reported strong sales of solutions for wind turbines and other stationary equipment as well as growing demand for products for the vehicles segment. Revenue was slightly lower than last year, but EBITDA improved relative to Q3 2019.

Borg Automotive reported stabilising business activity in important markets during the quarter. Revenue was slightly lower than last year, but EBITDA improved relative to Q3 2019.

Accounting policies

The interim report is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for the consolidated and parent company financial statements of listed companies.

Schouw & Co. has implemented the standards and interpretations which are effective from 2020. Wage compensation received has been offset against relevant wage costs.

See the 2019 Annual Report for a full description of the accounting policies.

Schouw & Co. shares

Schouw & Co. shares appreciated by 17% during the third quarter to DKK 616.00 at 30 September 2020 from DKK 528.00 at 30 June 2020.

Judgments and estimates

The preparation of interim financial statements requires management to make accounting judgments and estimates that affect recognised assets, liabilities, income and expenses. Actual results may differ from these judgments and estimates.

Special risks

The overall risk factors the Schouw & Co. Group faces are discussed in the 2019 Annual Report. The current assessment of special risks is largely unchanged from the assessment applied in the preparation of the 2019 Annual Report. It is important to note, however, that risks relating to the coronavirus situation, which at the time the annual report was being prepared, was limited to China and a few other countries, has now escalated into a global pandemic.

Roundings and presentation

The amounts appearing in this interim report have generally been rounded to the nearest million using standard rounding principles. Accordingly, some additions may not add up.

Events after the balance sheet date

Other than as set out elsewhere in this interim report, Schouw & Co. is not aware of events occurring after 30 September 2020 which are expected to have a material impact on the Group's financial position or outlook.

Outlook

Revenue and EBITDA guidance raised on expectations of stable market conditions for the rest of the year. Ownership interest in Salmones Austral expected to produce a loss.

Outlook for 2020

Coronavirus has been an extremely dominant factor in 2020, but as the year progressed the diversified nature of our conglomerate structure has proven its worth, helping to mitigate the consequences of the unusual situation. This new reality has made many companies consider their future organisational structure. We believe that many of the Group's customers prefer to strengthen their supply chains by seeking a better geographical spread and long-term partnerships with responsible suppliers. For the companies of the Schouw & Co. Group, that will offer a potential for long-term business relations.

After the second quarter, Schouw & Co. expected consolidated revenue for 2020 of about DKK 20.6 billion with EBITDA in the 1,940-2,110 million range. Following the good third quarter performance and the immediate prospects of stable market conditions, the Group is now raising its revenue guidance to approximately DKK 21 billion and its FY EBITDA guidance to DKK 2,070-2,220 million.

Associates and joint ventures are now expected to make a negative contribution of DKK 30-40 million in 2020 instead of the previous estimate of a DKK 10 million share of profit. The reduced estimate is mainly attributable to Salmones Austral. In addition, net financial expenses are expected to increase by about DKK 5 million relative to the previous forecast.

Naturally, the full-year guidance is subject to how

the coronavirus situation unfolds going forward. The following is a brief review of the full-year outlook for each individual company in 2020:

BioMar maintains its guidance of revenue of about DKK 11.5 billion. The EBITDA guidance range is changed to DKK 960-1,000 million, narrowed towards the upper end of the previous range.

Fibertex Personal Care maintains its guidance for revenue of about DKK 2.1 billion. The EBITDA guidance range is maintained at DKK 390-420 million.

Fibertex Nonwovens now projects revenue of DKK 1.7 billion, which is at the top end of the previous guidance range. At the same time, the company raises its EBITDA forecast to the DKK 245-265 million range from previously DKK 205- 225 million.

GPV is now guiding for revenue in the DKK 2.8-2.9 billion range from previously about DKK 2.7 billion and raises its EBITDA guidance range to DKK 230- 250 million from previously DKK 200-230 million.

HydraSpecma now forecasts revenue of just over DKK 1.9 billion, up from previously DKK 1.8 billion. The EBITDA guidance range is also raised, to DKK 185-205 million from previously DKK 160- 180 million.

Borg Automotive now expects revenue in the DKK 850-900 million range, which is slightly

higher than previously expected. The full-year EBITDA guidance range is raised to DKK 90-110 million from the previous forecast of DKK 75-85 million.

REVENUE (DKKm)	2020F after Q3	2020F after Q2	2019 realised
BioMar	c. 11,500	c. 11,500	11,180
Fibertex Personal Care	c. 2,100	c. 2,100	2,183
Fibertex Nonwovens	c. 1,700	c. 1,650	1,705
GPV	c. 2,850	c. 2,700	2,856
HydraSpecma	c. 1,925	c. 1,800	2,123
Borg Automotive	c. 875	c. 850	918
Other/eliminations	-	-	-18
Total revenue	c. 20,950	c. 20,600	20,946
EBITDA (DKKm)	2020F after Q3	2020F after Q2	2019 realised
BioMar	960-1,000	940-1,000	966
Fibertex Personal Care	390-420	390-420	352
Fibertex Nonwovens	245-265	205-225	141
GPV	230-250	200-230	196
HydraSpecma	185-205	160-180	215
Borg Automotive	90-110	75-85	110
Other	-30	-30	-29
Total EBITDA		2,070-2,220 1,940-2,110	1,951
PPA depreciation	-100	-100	-88
Other depreciation	-745	-745	-714
Total EBIT		1,225-1,375 1,095-1,265	1,149
Associates, JVs, etc.	c. -35	10	50
Equity divestments	-	-	29
Other financial items	c. -115	-110	-79
Profit before tax	1,075-1,225	995-1,165	1,149

Management Statement

To the shareholders of Aktieselskabet Schouw & Co.

The Board of Directors and Executive Management today considered and approved the interim report for the period 1 January to 30 September 2020.

The interim report, which has been neither audited nor reviewed by the company's auditors, was prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the interim financial statements give a true and fair view of the Group's assets,

liabilities and financial position at 30 September 2020 and of the results of the Group's operations and cash flows for the nine months ended 30 September 2020.

Furthermore, in our opinion the management's report includes a fair review of the development and performance of the business, the results for the period and the Group's financial position in general and describes the principal risks and uncertainties that it faces.

Aarhus, 5 November 2020

Financial calendar for 2021

3 March 2021	Deadline for submission of proposals to
	be considered at the annual general meeting
5 March 2021	Release of 2020 annual report
15 April 2021	Annual general meeting
20 April 2021	Expected distribution of dividend
6 May 2021	Release of Q1 2021 interim report
12 August 2021	Release of H1 2021 interim report
11 November 2021	Release of Q3 2021 interim report

The company provides detailed information about contacts and times of conference calls held in connection with the release of its annual and interim reports through company announcements and postings on its website, www.schouw.dk.

Aktieselskabet Schouw & Co.

Chr. Filtenborgs Plads 1
8000 Aarhus C
Denmark
T +45 86 11 22 22
www.schouw.dk
schouw@schouw.dk
Company reg. (CVR) no. 63965812

Executive Management

Jens Bjerg Sørensen President and CEO

Peter Kjær

Board of Directors

Jørn Ankær Thomsen Chairman

Jørgen Wisborg Deputy Chairman

Agnete Raaschou-Nielsen Hans Martin Smith Kenneth Skov Eskildsen

Kjeld Johannesen

Our businesses

• Portfolio company financial highlights 08
  • BioMar 10
  • Fibertex Personal Care 12
    • Fibertex Nonwovens 13
      • GPV 14
      • HydraSpecma 15
      • Borg Automotive 16

Portfolio company financial highlights – Q3

	BioMar		Fibertex Personal Care		Fibertex Nonwovens		GPV			HydraSpecma		Borg Automotive		Group
	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
INCOME STATEMENT
Revenue	3,528	3,404	509	541	478	437	836	741	473	494	242	258	6,060	5,872
Gross profit	452	495	125	106	115	86	137	117	120	125	60	59	1,010	988
EBITDA	326	345	97	93	80	47	84	56	57	53	38	32	676	621
Depreciation and impairment losses	85	81	33	34	30	25	29	28	22	20	12	12	211	200
EBIT	241	264	64	59	50	23	55	27	35	33	26	21	465	421
Profit after tax in associates and JVs	-44	11	0	0	0	0	0	0	0	0	0	0	-44	11
Gains on equity divestments	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net financial items	-17	-15	-6	3	-6	-6	-4	-9	-10	-4	0	-4	-30	-20
Profit/loss before tax	180	260	57	62	45	16	50	18	25	30	26	17	391	411
Tax on profit for the period	-47	-62	-13	-14	-9	-3	-12	-4	-6	-7	-5	-3	-95	-95
Profit for the period	134	198	44	48	36	13	38	14	19	22	20	13	296	316
Non-controlling interests	0	0	0	0	0	1	0	0	0	0	0	0	0	1
Schouw & Co.'s share of the profit	134	198	44	48	36	15	38	14	19	22	20	13	296	317
CASH FLOWS
Cash flows from operating activities	709	343	122	87	74	60	43	102	59	72	56	38	1,079	724
Cash flow from investing activities	-27	-84	-66	-11	-21	-27	-10	-29	-35	-15	-1	-2	-159	-170
Cash flows from financing activities	-707	-255	-54	-135	-42	-26	-12	-5	-30	-58	-60	-40	-840	-541
BALANCE SHEET
Intangible assets1	1,231	1,350	74	80	138	157	411	426	238	239	302	327	3,421	3,605
Property, plant and equipment	1,643	1,684	1,296	1,398	914	953	423	480	295	244	89	90	4,690	4,879
Other non-current assets	1,055	1,201	58	73	6	10	165	183	116	129	82	91	1,502	1,705
Cash and cash equivalents	677	450	28	24	113	54	194	174	61	62	105	54	671	613
Other current assets	4,138	4,418	549	633	748	801	1,302	1,292	961	1,024	412	531	8,095	8,685
Total assets	8,744	9,103	2,006	2,208	1,921	1,975	2,496	2,554	1,671	1,697	990	1,093	18,379	19,487
Shareholders' equity	2,615	2,721	1,091	1,069	635	671	873	850	545	512	518	561	9,444	9,252
Interest-bearing liabilities	2,373	2,559	396	634	998	1,031	952	1,071	735	793	35	101	2,904	4,207
Other liabilities	3,757	3,823	519	505	288	272	672	633	391	392	437	431	6,031	6,029
Total equity and liabilities	8,744	9,103	2,006	2,208	1,921	1,975	2,496	2,554	1,671	1,697	990	1,093	18,379	19,487
Average no. of employees	1,393	1,254	752	755	1,016	1,028	3,638	3,883	1,139	1,235	1,355	1,588	9,305	9,756
FINANCIAL KEY FIGURES
EBITDA margin	9.3%	10.1%	19.0%	17.2%	16.8%	10.8%	10.0%	7.5%	12.0%	10.8%	15.6%	12.5%	11.2%	10.6%
EBIT margin	6.8%	7.8%	12.5%	10.9%	10.5%	5.2%	6.5%	3.7%	7.4%	6.7%	10.7%	8.0%	7.7%	7.2%
ROIC excluding goodwill	18.8%	19.2%	17.9%	12.9%	7.5%	4.3%	9.2%	6.3%	11.8%	15.1%	15.2%	16.2%	14.2%	12.8%
ROIC including goodwill	13.8%	13.5%	16.8%	12.2%	7.0%	3.9%	8.3%	5.8%	10.5%	13.4%	7.7%	8.8%	11.4%	10.3%
Working capital	966	1,226	248	351	481	546	805	805	624	689	60	184	3,172	3,795
Net interest-bearing debt	1,655	2,070	367	610	884	977	757	898	674	732	-70	47	2,190	3,553

Notes: 1) Intangible assets in portfolio businesses stated exclusive of consolidated goodwill in Schouw & Co.

Portfolio company financial highlights – 9M

	BioMar		Fibertex Personal Care		Fibertex Nonwovens		GPV			HydraSpecma		Borg Automotive		Group
	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
INCOME STATEMENT
Revenue	8,604	8,055	1,593	1,637	1,315	1,332	2,191	2,173	1,464	1,615	647	719	15,800	15,517
Gross profit	1,072	1,050	394	305	312	254	325	324	367	408	139	171	2,610	2,513
EBITDA	707	667	322	265	194	125	191	143	160	178	73	86	1,626	1,441
Depreciation and impairment losses	251	235	103	102	81	74	88	89	64	58	36	35	624	595
EBIT	456	432	219	162	114	50	103	54	96	120	37	50	1,002	846
Profit after tax in associates and JVs	-35	33	0	0	0	0	0	0	0	0	0	0	-35	33
Gains on equity divestments	0	29	0	0	0	0	0	0	0	0	0	0	2	29
Net financial items	-46	-44	-10	-5	-27	-22	-19	-21	-30	-12	-5	-4	-94	-65
Profit/loss before tax	374	450	209	157	87	29	84	33	65	107	32	46	875	843
Tax on profit for the period	-100	-101	-49	-36	-20	-6	-21	-7	-16	-22	-7	-9	-217	-186
Profit for the period	274	349	160	121	67	23	64	26	50	85	25	37	658	657
Non-controlling interests	0	0	0	0	3	3	0	0	1	-1	0	0	4	2
Schouw & Co.'s share of the profit	274	349	160	121	70	26	64	26	51	84	25	37	662	659
CASH FLOWS
Cash flows from operating activities	872	193	371	351	168	61	95	149	173	115	138	26	1,867	952
Cash flow from investing activities	-121	-418	-78	-47	-71	-203	-24	-88	-74	-41	-5	-16	-373	-810
Cash flows from financing activities	-664	264	-295	-311	-68	145	-109	-48	-87	-69	-127	-9	-1,329	-123
BALANCE SHEET
Intangible assets1	1,231	1,350	74	80	138	157	411	426	238	239	302	327	3,421	3,605
Property, plant and equipment	1,643	1,684	1,296	1,398	914	953	423	480	295	244	89	90	4,690	4,879
Other non-current assets	1,055	1,201	58	73	6	10	165	183	116	129	82	91	1,502	1,705
Cash and cash equivalents	677	450	28	24	113	54	194	174	61	62	105	54	671	613
Other current assets	4,138	4,418	549	633	748	801	1,302	1,292	961	1,024	412	531	8,095	8,685
Total assets	8,744	9,103	2,006	2,208	1,921	1,975	2,496	2,554	1,671	1,697	990	1,093	18,379	19,487
Shareholders' equity	2,615	2,721	1,091	1,069	635	671	873	850	545	512	518	561	9,444	9,252
Interest-bearing liabilities	2,373	2,559	396	634	998	1,031	952	1,071	735	793	35	101	2,904	4,207
Other liabilities	3,757	3,823	519	505	288	272	672	633	391	392	437	431	6,031	6,029
Total equity and liabilities	8,744	9,103	2,006	2,208	1,921	1,975	2,496	2,554	1,671	1,697	990	1,093	18,379	19,487
Average no. of employees	1,371	1,226	744	745	1,004	1,027	3,626	3,871	1,168	1,221	1,456	1,634	9,383	9,738
FINANCIAL KEY FIGURES
EBITDA margin	8.2%	8.3%	20.2%	16.2%	14.8%	9.4%	8.7%	6.6%	10.9%	11.0%	11.3%	11.9%	10.3%	9.3%
EBIT margin	5.3%	5.4%	13.7%	9.9%	8.6%	3.8%	4.7%	2.5%	6.5%	7.4%	5.7%	7.0%	6.3%	5.5%
ROIC excluding goodwill	18.8%	19.2%	17.9%	12.9%	7.5%	4.3%	9.2%	6.3%	11.8%	15.1%	15.2%	16.2%	14.2%	12.8%
ROIC including goodwill	13.8%	13.5%	16.8%	12.2%	7.0%	3.9%	8.3%	5.8%	10.5%	13.4%	7.7%	8.8%	11.4%	10.3%
Working capital	966	1,226	248	351	481	546	805	805	624	689	60	184	3,172	3,795
Net interest-bearing debt	1,655	2,070	367	610	884	977	757	898	674	732	-70	47	2,190	3,553

Notes: 1) Intangible assets in portfolio businesses stated exclusive of consolidated goodwill in Schouw & Co.

BioMar

Strong third quarter sees improved revenue, but also a lower EBITDA mainly due to unfavourable exchange rate developments. FY EBIT guidance narrowed to the upper end of previous guidance range.

See financial highlights and key ratios on pp. 8–9 BioMar Q3 2020 Q3 2019 YTD 2020 YTD 2019 FY 2019 Revenue 3,528 3,404 8,604 8,055 11,180 EBITDA 326 345 707 667 966 EBIT 241 264 456 432 655 Associates and JVs -44 11 -35 33 50

BioMar is one of the world's largest manufacturers of quality feed for the fish and shrimp farming industries. The company's operations are divided into four divisions:

• The Salmon division covering operations in Norway, Scotland, Chile and Australia. The division supplies high-yielding feed for Atlantic salmon, Pacific salmon and trout.
• The EMEA division covering the EMEA region and involving all operations other than salmon. The division has production facilities in Denmark, France, Spain, Greece and Turkey.
• The LatAm division covering Latin American operations involving shrimp and fish other than salmon. The division has production facilities in Ecuador and Costa Rica.
• The Asia division covering operations involving fish and shrimp in Asia. The division currently consists of two factories in China.

Financial performance

BioMar reported a strong performance for Q3 2020 despite the effects of the coronavirus situation. An 8% increase in volumes sold led to a

BioMar	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
Volume ('000 tonnes)	408	379	988		913 1,250
Revenue (DKKm)			3,528 3,404 8,604 8,055 11,180
- salmon north			1,771 1,543 3,877 3,440 5,008
- salmon south	778		764 2,358 2,055 2,819
- other divisions			979 1,097 2,369 2,560 3,353

4% revenue increase to DKK 3,528 million from DKK 3,404 million in Q3 2019. Developments in foreign exchange rates had an overall negative impact of DKK 190 million on revenue in the third quarter, corresponding to a 9% increase in revenue when adjusting for foreign exchange rates.

The increase in volumes sold was driven by a significant improvement in the Salmon division. The innovative product offering, close working relationships with customers on developing advanced feed solutions and the start-up of production in Australia were some of the most important factors driving the improvement.

The LatAm division reported a year-on-year drop in third quarter revenue, as the coronavirus situation disrupted shrimp exports from Ecuador to China during the quarter. This reduced demand and changed the product mix from high-yielding to more ordinary feed products. Exports to China have been restored, but at a lower level and one subject to greater uncertainty than was the case in the pre-corona world.

The EMEA division also reported a year-on-year drop in revenue in the third quarter. The setback was mainly attributable to the coronavirus situation, which led to a sharp drop in demand from the HORECA segment during the quarter, and to windstorm damage in Spain, which has reduced the country's fish-farming capacity.

EBITDA fell from DKK 345 million in Q3 2019 to DKK 326 million in Q3 2020, mostly due to unfavourable exchange rate developments.

The 50%-owned feed businesses in Turkey and China, which are not consolidated, reported combined Q3 2020 revenue (100% basis) of DKK 189 million and EBITDA of DKK 10 million, compared to revenue of DKK 196 million and EBITDA of DKK 13 million in Q3 2019. The revenue decline was driven by Turkey, as the country experienced sales challenges similar to those seen in the rest of the EMEA division, whereas sales to China improved. Both companies contributed to the deteriorated performance; Turkey due to lower volume sales, and China due to its higher cost base following the start-up of the new factory in Wuxi in the second quarter of 2020.

The non-consolidated businesses also include the Chilean fish farming company Salmones Austral and three minor businesses, Letsea, ATC Patagonia and LCL Shipping. The non-consolidated companies are recognised in the Q3 2020 consolidated financial statements at a DKK 44 million share of loss after tax, compared with an DKK 11 million share of profit in Q3 2019. The decline was largely attributable to lower earnings in Salmones Austral due to significantly lower settlement prices for farmed salmon.

Working capital fell by DKK 260 million from DKK 1,226 million at 30 September 2019 to DKK 966 million at 30 September 2020. Several factors contributed to the reduction in working capital, including reduced trade receivables and inventories at a total of DKK 290 million, and an increase in other debt of DKK 46 million that was mainly due to extended deadlines for the payment of VAT and employee income taxes, etc. due to the coronavirus situation. On the other hand, funding from trade payables fell by DKK 76 million. The use of supply chain financing fell from DKK 1,071 million at 30 September 2019 to DKK 882 million at 30 September 2020. Changes in exchange rates had the overall effect of reducing working capital by DKK 143 million.

ROIC excluding goodwill fell marginally from 18.9% at 30 June 2020 to 18.8% at 30 September 2020.

Business review

Despite the unusual conditions caused by the coronavirus situation, BioMar has managed to maintain operations at near-normal levels in 2020. The negative impact on BioMar's overall volume sales has been relatively modest to date, but certain markets have faced more challenges than others, particularly Ecuador and the Mediterranean markets.

BioMar

However, the current challenges in Ecuador have not deterred the expectations of longer-term market growth that were the background for the capacity expansion BioMar launched in Ecuador in 2019. The expansion includes a production line for extruded feed, which will increase annual capacity by a further 40,000 tonnes. The new production line represents an investment of approximately DKK 50 million and is commissioned in the fourth quarter of 2020.

Early in the second quarter, BioMar concluded a declaration of intent with a leading player in Vietnam's shrimp farming industry, Viet-UC, intended to pave the way for BioMar becoming a co-owner and taking operational charge of a relatively new feed factory owned by Viet-UC. The new partnership is expected to produce substantial synergies and to strengthen BioMar's global position in the shrimp feed business. The process to define the partnership is moving forward, but at a slower pace than originally anticipated due to the continuing travel restrictions.

Outlook

From a general perspective, demand for farmed fish and shrimp is progressing well in most markets. However, the current coronavirus situation has disrupted the usual sales channels for farmed fish and shrimp, leading to import/export restrictions and resulting in highly volatile supply, demand and pricing.

To date, the coronavirus situation has not had any significant impact on BioMar's overall volume sales, but some geographical shifts have occurred and sales of more advanced feed products have declined in certain markets and have been replaced by more ordinary products.

Developments on the consumer side will be a key driver of market developments. Fish and shrimp are very much out-of-home consumption products with a large proportion of sales usually going to restaurants and catering as well as to airlines and cruise ships. The entire HORECA segment has been severely battered by the coronavirus situation, and the loss of volume sales here has only been partly offset through the retail segment. The change in consumption patterns has, along with international uncertainty and national restrictions, led to lower settlement prices for fish and shrimp, which in turn could result in increasingly difficult financial conditions for BioMar's customers. As a result, BioMar has stepped up its usually very strong attention to trade receivables, but the company will also endeavour to support its customers as much as is possible and justifiable.

It is quite obvious that market developments are subject to above-normal uncertainty, both in terms of how the world's core markets are evolving and how new coronavirus outbreaks may lead to restrictions that could impact BioMar's sales and risk profile. Nevertheless, BioMar continues to

expect an increase in volume sales in 2020 relative to 2019, but the improvement will likely be smaller than originally anticipated and very much driven by the strategic investments implemented in recent years.

Against that background, BioMar maintains its guidance for FY 2020 revenue of about DKK 11.5 billion, whereas EBITDA is now expected in the DKK 960-1,000 million range instead of the previous range of DKK 940-1,000 million.

Associates and joint ventures, which are recognised at a share of profit after tax, are now expected to make a negative contribution of DKK 30-40 million in 2020 instead of the previous estimate of a DKK 10 million share of profit. The reduced estimate is largely attributable to Salmones Austral.

Fibertex Personal Care

Increase in volumes sold and strong EBITDA. Revenue down due to a drop in selling prices mainly resulting from changes in exhange rates and prices of raw materials being lower than last year. Full-year revenue and EBITDA forecast maintained.

Fibertex Personal Care	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
Revenue EBITDA	509 97	93	322	541 1,593 1,637 2,183 265	352
EBIT	64	59	219	162	215

See financial highlights and key ratios on pp. 8–9

Fibertex Personal Care is one of the world's largest manufacturers of spunbond/spunmelt nonwovens for the personal care industry. The company has nonwovens production facilities in Denmark and Malaysia.

Operations include printing on nonwoven textiles for the personal care industry. The company is the market leader in this field. Printing operations are based in Germany, Malaysia and the USA. Both businesses are focused mainly on materials for diapers, sanitary towels and incontinence products.

Financial performance

Fibertex Personal Care reported Q3 2020 revenue of DKK 509 million, down by 6% from DKK 541 million in Q3 2019. The drop in revenue was caused mainly by changes in exchange rates and a drop in prices of raw materials compared with the third quarter of 2019 and the resulting lower selling prices on volume sales up year on year.

The Q3 2020 EBITDA was DKK 97 million, compared with DKK 93 million in Q3 2019. The earnings improvement was driven especially by the higher volume sales, but EBITDA was also affected by

Fibertex Personal Care	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
Revenue (DKKm)	509		541 1,593 1,636 2,183
- from Denmark	163	193	530	567	743
- from Malaysia	253	254	804		788 1,058
- printing activities	94	94	260	281	382

opposing factors, such as the negative impact of developments in prices of raw materials and the positive effect from exchange rate developments.

Fibertex Personal Care reduced its working capital from DKK 351 million at 30 September 2019 to DKK 248 million 30 September 2020. The main reason for the lower working capital was a drop in receivables and extended deadlines for paying in VAT and employee income taxes, etc. due to the coronavirus situation.

The EBIT improvement and the lower working capital lifted the return on invested capital, ROIC, excluding goodwill to 17.9% at 30 September 2020 from 17.1% at 30 June 2020.

Business review

In September 2020, Fibertex Personal Care announced plans to set up another production line in Sendayan, Malaysia. Expected to be operational in the second half of 2021, the new production line will enable Fibertex Personal Care to share in the continuing growth being projected for the Asian market.

At the same time, Fibertex Personal Care announced plans to add a new printing line to operations in the USA, which is also expected to be operational in the second half of 2021, to accommodate growing demand for printed nonwovens in the US market. Representing a combined investment of about DKK 250 million, the two new production lines will add more than 10% to the existing capacity within each business area.

Fibertex Personal Care has worked for several years to add specialty products to its portfolio, including materials with visual effects as well as softer and textile-like materials, and the company has successfully built a strong position in this field. In addition to physical products, the efforts have also centred on developing new services, including an improved selection of ready print designs for the many customers that do not have an in-house design department.

For many years, sustainable production and responsible use of resources have been focus areas for Fibertex Personal Care and the company is now the world's first nonwoven manufacturer to be ISCC PLUS certified. As a result, the company is now able to supply nonwovens based on a sustainable raw material called bio- or circular polypropylene.

The certification has enabled Fibertex Personal Care to begin a ground-breaking partnership with SABIC, one of its most important suppliers, for the purpose of supporting an accelerated transition to a more sustainable plastics supply chain. As the entire personal care industry is deeply engaged in developing sustainable products, the new partnership has already generated a lot of interest.

Outlook

Due to the coronavirus situation, demand for nonwovens for the production of personal protective equipment remains strong. Fibertex Personal Care has continued to focus mainly on materials for the production of diapers, sanitary towels and incontinence products, but operations involving printing on nonwovens to be used for face masks have increased. From a general perspective, Asia is expected to see growth in all three areas, but incontinence products have shown particularly positive trends in both the European and North American markets.

Fibertex Personal Care retains its full-year revenue forecast of DKK 2.1 billion, and EBITDA is maintained in the DKK 390-420 million range. As always, revenue and EBITDA are subject to changes in prices of raw materials and in foreign exchange rates.

Fibertex Nonwovens

Significant improvements in revenue and EBITDA. Stabilised volume sales to the automotive industry and healthy demand from other segments. Strong full-year earnings upgrade.

Fibertex Nonwovens	Q3 2020	Q3 2019		YTD 2019	FY 2019
Revenue	478			437 1,315 1,332 1,705
EBITDA	80	47	194	125	141
EBIT	50	23	114	50	33

See financial highlights and key ratios on pp. 8–9

Fibertex Nonwovens is among Europe's leading manufacturers of nonwovens, i.e. fibre sheets produced on high-tech processing facilities with various purpose-specific post-processings. The products are used for a number of different industrial purposes. The company's core markets are in Europe and North and South America, while its secondary markets are in Africa and Asia.

Financial performance

Fibertex Nonwovens reported Q3 2020 revenue of DKK 478 million, a 9% increase from DKK 437 million in Q3 2019. Volume sales to the automotive industry improved during the quarter, and the positive performance at the end of the second quarter carried over into the third quarter for other segments.

On the earnings side, however, Fibertex Nonwovens reported its best third quarter ever thanks to strong volume sales of products for manufacturing disposable wipes, filtration materials and industrial products. Reported EBITDA for Q3 2020 was DKK 80 million, up from DKK 47 million in Q3 2019. This stronger-than-expected improvement found support in reduced prices of raw materials compared to last year, good capacity utilisation and the effects of a number of improvement initiatives.

Working capital fell from DKK 546 million at 30 September 2019 to DKK 481 million at 30 September 2020 due in part to lower inventories and extended deadlines for paying in VAT and employee income taxes, etc. due to the coronavirus situation.

ROIC excluding goodwill increased from 5.6% at 30 June 2020 to 7.5% at 30 September 2020, driven mainly by the earnings improvement and the lower capital employed.

Business review

The coronavirus situation caused a change in demand patterns for nonwovens early in the year. Fibertex Nonwovens has quickly and successfully managed to transfer freed-up production capacity from automotive and industrial purposes to other products in stronger demand, thereby increasing its capacity for manufacturing healthcare-related products. In addition, Fibertex Nonwovens is reaping the benefits of capacity expansion investments made in recent years at its factory sites in Turkey, France, the USA and Brazil.

During the third quarter, the company saw growing demand in important segments. Sales to the automotive industry, which had been severely impacted by the shutdown of automotive plants in the second quarter, performed well during the third quarter and sales of traditional industrial products and products for the construction industry were solid. Also, sales of products for manufacturing wipes and specialty products (including nanoproducts) for the production of face masks continued the strong

performance from the second quarter. As a result, all production units reported high capacity utilisation at the end of the third quarter.

In recent years, Fibertex Nonwovens has consolidated its position as a leading manufacturer of industrial nonwovens, strengthening its business base through a number of important strategic and structural initiatives. In terms of development and innovation, the company has built a solid portfolio of projects, including new products for the automotive, construction and composite industries for acoustic applications, filtration solutions and products used to manufacture wipes. Among the special initiatives that have been underway in Denmark for some time is nanotechnology, the focus of which is to develop and manufacture products for filtration and healthcare-related purposes.

Outlook

The coronavirus situation continues to affect Fibertex Nonwovens' operations. However, it is the impression that the European and North American automotive industries have stabilised, so the current level of activity can be sustained for the rest of the year and into the first half of 2021. At the same time, upward trending demand in other segments has contributed to high capacity utilisation, and developments in prices of the most frequently used types of raw materials have supported a sound balance between prices of raw materials and selling prices.

Based on the current outlook, Fibertex Nonwovens raises its full-year revenue guidance to DKK 1.7 billion, which is the upper end of the previously guided range of DKK 1.6-1.7 billion, while also raising its EBITDA guidance range to DKK 245-265 million from previously DKK 205-225 million.

GPV

Growing demand from certain segments driving strong revenue and EBITDA improvements. Revenue and EBITDA guidance raised.

GPV	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
Revenue EBITDA	836 84	56	191	741 2,191 2,173 2,856 143	196
EBIT	55	27	103	54	78

See financial highlights and key ratios on pp. 8–9

GPV is a leading European EMS (Electronics Manufacturing Services) company. The company is a high-mix/low-medium volume manufacturer in the B2B market. Core products are electronics, mechanics, cable harnessing, mechatronics (combination of electronics, mechanics and software) and associated services.

The company's customers are primarily major international businesses typically headquartered in Europe or North America, and GPV supplies its customers' international units in more than fifty countries. GPV has a strong production platform and operates production facilities in Denmark, Switzerland, Germany, Austria, Slovakia, Thailand, Sri Lanka, China and Mexico.

Financial performance

GPV reported Q3 2020 revenue of DKK 836 million, a 13% increase from DKK 741 million in Q3 2019 and a good deal better than expected. The revenue performance was driven by a number of opposing factors, with demand more or less down in some segments while it was stronger in others. In particular, GPV delivered most of a major order to a MedTech customer in the ventilator segment, which had a positive effect on both revenue and earnings for the quarter.

EBITDA rose to DKK 84 million in the quarter from DKK 56 million in Q3 2019. The Q3 2020 EBITDA was lifted by the increase in revenue, while the

Q3 2019 comparator was adversely affected by changes in Thai baht exchange rates against the main selling currencies.

Working capital amounted to DKK 805 million at 30 September 2020, which was in line with the amount at 30 September 2019 following an increase in trade receivables and a drop in inventories. In addition, the effects of extended deadlines for paying in VAT and employee income taxes, etc. due to the coronavirus situation contributed to keeping working capital steady despite the higher revenue.

ROIC excluding goodwill increased to 9.2% at 30 September 2020 from 7.4% at 30 June 2020, driven by the improved earnings.

Business review

During 2020, GPV has aligned its business activity to the current coronavirus situation. A few of the company's factory sites were temporarily closed fully or in part in compliance with governmentimposed restrictions, but overall, GPV has generally managed to maintain its usual level of service throughout the period. Similarly, some of the company's customers have had to close their plants temporarily or have for other reasons cut back on calling for shipments from GPV. On the other hand, many customers have kept business activity at normal levels, and a few, including in the MedTech segments, have recorded considerable improvements, which strongly drove volume sales in the third quarter.

Meeting customer requirements for high quality standards and reliability of supply is a top priority for GPV. To ensure adequate flexibility, the company has an ongoing investment programme to step up automation and efficiency. This includes ongoing attention to digitising business processes, including the use of video streaming for customer audits, certification audits and implementing new products. Earlier in the year, GPV made a decision to implement a new manufacturing execution system (MES) across factory sites. The project was launched at the end of the third quarter and is expected to run over the coming years.

Outlook

GPV believes the coronavirus situation market will continue to drive market developments in the upcoming period, and that this will impact the general level of business activity in the fourth quarter and into 2021. On the other hand, GPV is experiencing growing demand from a number of customers, and the company has a strong pipeline with an ongoing inflow of new contracts and new customers, which over the longer term will support its business activity. The overall impact on GPV's business activity will depend very much on the length of time Europe and North America will more or less remain in lock down, and on how severely the global economy will be impacted by the situation.

The large shipments to the MedTech segment are not expected to continue at current high levels, but shipments made in the third quarter have boosted the full-year guidance. As a result, GPV is raising its full-year revenue guidance to the DKK 2.8-2.9 billion range (from previously about DKK 2.7 billion) and its EBITDA guidance range to DKK 230-250 million (from previously DKK 200-230 million).

HydraSpecma

Sales of products for the vehicles segment recovering faster than previously expected. Sales of solutions for wind turbines and other stationary equipment remaining strong. Revenue and EBITDA guidance raised.

Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
473
57	53	160	178	215
35	33	96	120	136
				494 1,464 1,615 2,123

See financial highlights and key ratios on pp. 8–9

HydraSpecma is a manufacturing, trading and engineering company specialising in Power & Motion whose core business is hydraulic components and systems for industry and the aftermarket. The company is a hydraulics market leader in the Nordic region and also serves customers from its own businesses in Poland, the UK, China, India, Brazil and the USA.

Financial performance

HydraSpecma performed better than expected in the third quarter. Sales of solutions for wind turbines and other stationary equipment remained at a sound level, and business from large global customers in the vehicles segment has recovered faster than anticipated. Demand in other segments remains moderate due to the coronavirus situation.

HydraSpecma reported Q3 2020 revenue of DKK 473 million, a 4% decline from DKK 494 million in Q3 2019. Despite the slight drop in revenue, reported EBITDA for Q3 2020 improved to DKK 57 million, up from DKK 53 million in Q3 2019.

Working capital fell from DKK 689 million at 30 September 2019 to DKK 624 million at 30 September 2020. The decline was mainly due to lower inventories and the effects of extended deadlines for paying in VAT and employee income taxes, etc. due to the coronavirus situation.

ROIC excluding goodwill increased from 11.6% at 30 June 2020 to 11.8% at 30 September 2020, driven mainly by the earnings improvement and the lower working capital.

Business review

HydraSpecma continued aligning its operations to the current level of activity in the third quarter, and the company has retained its usual high level of service and efficiency. The factory in India was closed for part of the reporting period due to a local government order, but the company's other units stepped in to ensure customer shipments were made.

HydraSpecma continues the work to optimise its production lead times in order to remain agile and to enhance efficiency in both large and small series production runs and to optimise logistics both inhouse and externally.

In its Danish operations, HydraSpecma completed a warehouse expansion in Skjern that will improve in-house logistics, and the company has begun to build a new tech centre at Ishøj outside Copenhagen which is scheduled to be operational in the second half of 2021.

In Sweden, HydraSpecma is building new logistics and production facilities in the Gothenburg area, which will help the company optimise its current production and ensure sufficient capacity to meet anticipated future demand from customers in the vehicles segment. The new unit is expected to begin operations by the end of the first half of 2021.

In recent years, HydraSpecma has expanded its product assortment and grown its expertise within electrified solutions that not only operate independently but can also be combined with hydraulic components for hybrid solutions. The purpose of these efforts is to accommodate growing market demand for electrification along with the company's goal of making its solutions more sustainable.

Outlook

HydraSpecma expects to maintain sales to customers in the wind turbine segment and for other stationary equipment at the current satisfactory level. Demand from major customers in the vehicles segment has been trending upwards, and combined with its growing market share, the company expects sales will return to pre-corona levels over the next six months. Other customers are also experiencing growing business activity, but it is believed that a full return to normal will take a good deal longer.

The hydraulics market remains marred by uncertainty, with prospects continually changing and at short notice. HydraSpecma continues the work help its companies align to the future market situation while also making the necessary investments to ensure that the organisation remains agile and

retains its competitive strength and high level of service. The company has also allocated resources to identify opportunities that may arise in a turbulent market.

Based on the stronger demand from customers in the vehicles segment, HydraSpecma raises its fullyear revenue guidance to just over DKK 1.9 billion from the previous forecast of about DKK 1.8 billion. The full-year EBITDA guidance range is raised accordingly, to DKK 185-205 million from the previous forecast of DKK 160-180 million.

Borg Automotive
-----------------	--

Important markets stabilising and EBITDA improving. Agreement signed to acquire turbocharger operations in Spain. Full-year EBITDA guidance upgraded.

Borg Automotive	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019
Revenue	242	258	647	719	918
EBITDA	38	32	73	86	110
EBIT	26	21	37	50	62

See financial highlights and key ratios on pp. 8–9

Europe's largest independent remanufacturing company, Borg Automotive produces, sells and distributes remanufactured automotive parts to the European market, thereby supporting the concept of a circular economy.

Borg Automotive sells its products under three different brands: the international brand Lucas and the company's two proprietary brands, Elstock and DRI. The company's main products are starters, alternators, brake callipers, air-condition compressors, EGR valves, steering racks and pumps. The company's business model is supported by a sales deposit system that encourages customers to return defective spare parts as they are replaced, so they can be used as cores for remanufacturing purposes.

Headquartered in Silkeborg, Denmark, Borg Automotive operates production facilities in Poland and the UK and has a sales subsidiary in Belgium. In September 2020, the company agreed to acquire turbocharger operations in Spain.

Financial performance

The coronavirus situation continued to affect Borg Automotive in the third quarter of 2020, especially early in the quarter when several markets were still impacted by the reduced level of activity. Nevertheless, reported Q3 2020 revenue was DKK 242 million, a 6% decline from DKK 258 million in Q3 2019.

Borg Automotive has launched a number of initiatives and adjustments in 2020 to counter the effects of the coronavirus situation, including a major organisational realignment. The results of the efforts have been better than expected, and despite the slight drop in revenue, reported EBITDA improved from DKK 32 million in Q3 2019 to DKK 38 million in Q3 2020.

Working capital fell from DKK 184 million at 30 September 2019 to DKK 60 million at 30 September 2020, which is a good deal less than would otherwise be expected. The reduced working capital was due to, among other things, reduced component and finished goods inventories as well as lower trade receivables. In addition, the extended deadlines for paying in VAT and employee income taxes, etc. due to the coronavirus situation had a positive effect.

ROIC excluding goodwill grew from 13.1% at 30 June 2020 to 15.2% at 30 September 2020.

Business review

Borg Automotive has continuously worked to develop its product portfolio and in September 2020, as part of these efforts, the company struck a deal with Spanish remanufacturing company Turbo Motor Inyección (TMI) to acquire that company's turbocharger operations. Remanufactured turbochargers is a rapidly growing product segment, and this addition to the product portfolio accommodates customer demand. The acquisition adds about 135 employees to Borg Automotive's staff and about DKK 100 million to annual revenue. The acquisition is expected to close in the fourth quarter of 2020 as an asset transaction with an earn-out model that over time could result in an enterprise value of DKK 60-80 million.

The TMI acquisition will support Borg Automotive's position as Europe's largest independent remanufacturing company and will strengthen the company's presence in the important southern European market.

Outlook

The considerable customer consolidation seen in recent years in the market Borg Automotive serves has obviously caused changes to prevailing trading patterns, but it also provides added revenue opportunities for large, well-established players like Borg Automotive. Borg Automotive has a broad product portfolio and a strong pipeline that will support positive sales developments to the independent aftermarket and to the OE segment.

The recent agreement to acquire the turbocharger operations in Spain supports Borg Automotive's product portfolio and its market position, but the deal is not expected to have a material effect on revenue and earnings for 2020.

After the end of the Q2 2020 reporting period, Borg Automotive forecast FY 2020 revenue of about DKK 850 million and EBITDA in the range of DKK 75-85 million. Based on the current outlook, Borg Automotive now expects to report FY 2020 revenue in the DKK 850-900 million range and EBITDA in the range of DKK 90-110 million.

Interim financial statements

• Statements of income and comprehensive income ¹⁸
  • Balance sheet · Assets and liabilities 19
    • Cash flow statement 20
    • Statement of changes in equity 21
    • Notes to the financial statements 22

Statements of income and comprehensive income

Note	Income statement		Q3 2020 Q3 2019	YTD 2020	YTD	2019 FY 2019
1	Revenue	6,060	5,872	15,800	15,517	20,946
	Cost of sales	-5,050	-4,884	-13,190	-13,004	-17,576
	Gross profit	1,010	988	2,610	2,513	3,370
	Other operating income	8	4	21	26	37
	Distribution costs	-330	-351	-989	-1,002	-1,335
2	Administrative expenses	-208	-220	-614	-688	-918
	Other operating expenses	-14	0	-27	-3	-5
	EBIT	465	421	1,002	846	1,149
	Profit after tax in associates	-44	6	-43	27	49
	Profit after tax in joint ventures	1	4	8	6	1
	Gains on divestments	0	0	2	29	29
	Financial income	24	22	48	38	84
	Financial expenses	-55	-42	-142	-104	-164
	Profit/loss before tax	391	411	875	843	1,149
	Tax on profit for the period	-95	-95	-217	-186	-243
	Profit for the period	296	316	658	657	906
	Shareholders of Schouw & Co.	296	317	662	659	911
	Non-controlling interests	0	-1	-4	-2	-5
	Profit for the period	296	316	658	657	906
6	Earnings per share (DKK)	12.36	13.31	27.61	27.73	38.27
6	Diluted earnings per share (DKK)	12.36	13.30	27.59	27.71	38.27

Statement of comprehensive income		Q3 2020 Q3 2019	YTD 2020	YTD	2019 FY 2019
Items that cannot be reclassified to the income statement:
Actuarial gains/losses on defined benefit pension liabilities	0	0	0	0	3
Items that can be reclassified to the income statement:
Foreign exchange adjustments of foreign units, etc.	-214	161	-417	227	163
Value adjustment of hedging instruments	-5	11	5	4	0
Hedging instruments transferred to cost of sales	0	0	-2	-1	2
Hedging instruments transferred to financials	0	0	-1	2	4
Other comprehensive income from associates and JVs	0	0	0	0	9
Other adjustments to other comprehensive income	0	0	0	-1	0
Tax on other comprehensive income	1	-3	-1	-1	-1
Other comprehensive income after tax	-218	170	-415	232	180
Profit for the period	296	316	658	657	906
Total recognised comprehensive income	78	485	242	889	1,086
Attributable to
Shareholders of Schouw & Co.	78	487	245	891	1,091
Non-controlling interests	0	-1	-3	-2	-5
Total recognised comprehensive income	78	485	242	889	1,086

Balance sheet · Assets and liabilities

Note	Assets	30/9 2020	31/12 2019	30/9 2019	31/12 2018
	Intangible assets	3,421	3,568	3,605	3,594
	Property, plant and equipment	4,690	4,956	4,879	4,317
	Lease assets	736	827	839	0
	Equity investments in associates	361	427	413	377
	Equity investments in joint ventures	134	136	145	137
	Securities	79	79	77	75
	Deferred tax	122	122	121	66
	Receivables	70	107	110	108
	Total non-current assets	9,613	10,222	10,189	8,674
	Inventories	3,482	3,868	3,929	3,683
3	Receivables	4,577	4,112	4,715	3,903
	Income tax receivable	35	37	42	94
	Cash and cash equivalents	671	538	613	585
	Total current assets	8,766	8,554	9,298	8,266
	Total assets	18,379	18,777	19,487	16,940

Liabilities and equity	30/9 2020	31/12 2019	30/9 2019	31/12 2018
Share capital	255	255	255	255
Hedge transaction reserve	-1	-3	-3	-8
Exchange adjustment reserve	-167	251	307	79
Retained earnings	9,357	8,658	8,688	7,994
Proposed dividend	0	357	0	332
Equity attributable to parent company shareholders	9,444	9,519	9,247	8,652
Non-controlling interests	-1	2	5	7
Total equity	9,444	9,521	9,252	8,659
Deferred tax	389	409	438	397
Liability regarding put option	0	0	366	321
Other payables	278	306	272	275
Interest-bearing debt	1,750	2,976	3,282	1,749
Non-current liabilities	2,417	3,691	4,357	2,742
Interest-bearing debt	1,154	909	924	1,309
Trade payables and other payables	4,833	4,173	4,806	4,089
Liability regarding put option	378	369	0	0
Corporate income tax	154	114	148	140
Current liabilities	6,518	5,565	5,878	5,538
Total liabilities	8,935	9,256	10,235	8,281
Total equity and liabilities	18,379	18,777	19,487	16,940

Notes without reference 5 and 7-9.

Cash flow statement

Note			Q3 2020 Q3 2019	YTD 2020	YTD	2019 FY 2019
	Profit before tax	391	411	875	843	1,149
	Adjustment for non-cash operating items etc.:
	Depreciation and impairment losses	211	200	624	595	802
	Other non-cash operating items, net	-2	24	-12	-32	-1
	Provisions	3	1	6	7	33
	Share of profit after tax in associates and JVs	44	-11	35	-33	-50
	Financial income	-24	-22	-48	-38	-84
	Financial expenses	55	42	142	104	164
	Cash flows from operations before changes in work
	ing capital	677	646	1,622	1,446	2,012
	Changes in working capital	466	169	477	-256	-228
	Cash flows from operations	1,142	814	2,099	1,190	1,784
	Interest received	5	4	11	13	16
	Interest paid	-20	-39	-86	-98	-116
	Cash flows from ordinary activities	1,127	779	2,024	1,105	1,684
	Income tax paid	-49	-55	-157	-153	-274
	Cash flows from operating activities	1,079	724	1,867	952	1,410
	Purchase of intangible assets	-6	-8	-17	-21	-30
	Purchase of property, plant and equipment	-154	-203	-366	-570	-774
	Sale of property, plant and equipment	2	1	4	9	12
4	Acquisitions	0	0	0	-241	-259
	Acquisition of non-controlling interests	0	0	0	0	-1
	Acquisition of/capital contribution to associates and JVs	0	-1	0	-2	-3
	Dividends received from associates	0	0	0	11	11
	Additions/disposals of other financial assets	-2	43	6	4	1
	Cash flows from investing activities	-159	-170	-373	-810	-1,043

		Q3 2020 Q3 2019	YTD 2020	YTD	2019 FY 2019
Loan financing:
Repayment of non-current liabilities	-86	-76	-328	-184	-363
Proceeds from non-current liabilities incurred	1	0	75	1,016	1,020
Increase of bank overdrafts	-757	-465	-751	-688	-881
Cash flows from debt financing	-842	-541	-1,004	144	-224
Shareholders:
Dividends paid	0	0	-336	-309	-309
Purchase/sale of treasury shares, net	2	0	11	43	112
Cash flows from financing activities	-840	-541	-1,329	-123	-421
Cash flows for the period	79	14	166	19	-54
Cash and cash equivalents, beginning of period	615	588	538	585	585
Value adjustment of cash and cash equivalents	-23	11	-33	9	8
Cash and cash equivalents, end of period	671	613	671	613	538

Statement of changes in equity

		Hedge transaction	Exchange adjust				Non-controlling
	Share capital	reserve	ment reserve	Retained earnings	Proposed dividend	Total		interests Shareholders' equity
Equity at 1 January 2019	255	-8	79	7,994	332	8,652	7	8,659
Profit and other comprehensive income:
Foreign exchange adjustments of foreign subsidiaries		0	228	0	0	228	0	227
Value adjustment of hedging instruments		4	0	0	0	4	0	4
Hedging instruments transferred to cost of sales		-1	0	0	0	-1	0	-1
Hedging instruments transferred to financials		2	0	0	0	2	0	2
Other comprehensive income from associates and joint ventures		0	0	0	0	0	0	0
Other adjustments to other comprehensive income		0	0	-1	0	-1	0	-1
Tax on other comprehensive income		-1	0	0	0	-1	0	-1
Profit for the period		0	0	659	0	659	-2	657
Total recognised comprehensive income		5	228	658	0	891	-2	889
Transactions with owners:
Share-based payment		0	0	16	0	16	0	16
Distributed dividends		0	0	22	-332	-309	0	-309
Value adjustment of put option		0	0	-45	0	-45	0	-45
Treasury shares bought/sold		0	0	43	0	43	0	43
Total transactions with owners during the period		0	0	36	-332	-295	0	-295
Equity at 30 September 2019	255	-3	307	8,688	0	9,247	5	9,252
Equity at 1 January 2020	255	-3	251	8,658	357	9,519	2	9,521
Profit and other comprehensive income:
Foreign exchange adjustments of foreign subsidiaries		0	-418	0	0	-418	1	-417
Value adjustment of hedging instruments		5	0	0	0	5	0	5
Hedging instruments transferred to cost of sales		-2	0	0	0	-2	0	-2
Hedging instruments transferred to financials		-1	0	0	0	-1	0	-1
Other comprehensive income from associates and joint ventures		0	0		0	0	0	0
Other adjustments to other comprehensive income		0	0	0	0	0	0	0
Tax on other comprehensive income		-1	0	0	0	-1	0	-1
Profit for the period		0	0	662	0	662	-4	658
Total recognised comprehensive income		2	-418	662	0	245	-3	242
Transactions with owners:
Share-based payment		0	0	15	0	15	0	15
Distributed dividends		0	0	21	-357	-336	0	-336
Value adjustment of put option		0	0	-9	0	-9	0	-9
Treasury shares bought/sold		0	0	11	0	11	0	11
Total transactions with owners during the period		0	0	38	-357	-319	0	-319
Equity at 30 September 2020	255	-1	-167	9,357	0	9,444	-1	9,444

1

Segment reporting

Reporting segments YtD 2020	BioMar	Fibertex Personal Care	Fibertex Nonwovens	GPV	HydraSpecma	Borg Automotive	Reporting segments	Non-reporting segments	Parent company	Group eliminations, etc.	Total
External revenue	8,604	1,578	1,315	2,191	1,464	647	15,799	1	0	0	15,800
Intra-group revenue	0	15	0	0	0	0	15	0	8	-23	0
Segment revenue	8,604	1,593	1,315	2,191	1,464	647	15,814	1	8	-23	15,800
EBITDA	707	322	194	191	160	73	1,648	1	-22	0	1,626
Depreciation and impairment losses	251	103	81	88	64	36	623	0	1	0	624
EBIT	456	219	114	103	96	37	1,025	1	-23	0	1,002
Share of profit in associates and JVs	-35	0	0	0	0	0	-35	0	0	0	-35
Tax on profit for the period	-100	-49	-20	-21	-16	-7	-212	0	-4	0	-217
Profit for the period	274	160	67	64	50	25	639	0	18	0	658
Segment assets:	9,174	2,054	1,953	2,496	1,671	1,506	18,854	11	10,348	-10,834	18,379
Of which goodwill	1,358	99	118	174	138	516	2,403	0	0	0	2,403
Equity investments in associates and JVs	487	0	0	0	8	0	495	0	0	0	495
Segment liabilities	6,130	915	1,286	1,623	1,126	472	11,551	6	1,930	-4,552	8,935
Working capital	966	248	481	805	624	60	3,184	0	-12	0	3,172
Net interest-bearing debt	1,655	367	884	757	674	-70	4,268	4	-2,081	0	2,190
Cash flows from operating activities	872	371	168	95	173	138	1,817	1	38	11	1,867
Capital expenditure	127	79	71	26	74	5	383	0	0	0	383
Average no. of employees	1,371	744	1,004	3,626	1,168	1,456	9,369	0	14	0	9,383

Based on management control and financial management, Schouw & Co. has identified six reporting segments, which are BioMar, Fibertex Personal Care, Fibertex Nonwovens, GPV, HydraSpecma and Borg Automotive. All inter-segment transactions were made on an arm's length basis.

The data on revenue by geography are based on customers' geographical location, while data on intangible assets and property, plant and equipment by geography are based the geographical location of the assets. The specification shows individual countries that account for more than 5% of the Group in terms of revenue or assets. As Schouw & Co.'s consolidated revenue is generated in some 100 different countries, a very large proportion of revenue derives from the 'Other' category.

Revenue by country:

1

Segment reporting (continued)

Reporting segments YTD 2019	BioMar	Fibertex Personal Care	Fibertex Nonwovens	GPV	HydraSpecma	Borg Automotive	Reporting segments	Non-reporting segments	Parent company	Group eliminations, etc.	Total
External revenue	8,055	1,623	1,332	2,173	1,615	719	15,516	1	0	0	15,517
Intra-group revenue	0	14	0	0	0	0	14	0	8	-22	0
Segment revenue	8,055	1,637	1,332	2,173	1,615	719	15,530	1	8	-22	15,517
EBITDA	667	265	125	143	178	86	1,463	1	-23	0	1,441
Depreciation and impairment losses	235	102	74	89	58	35	594	0	0	0	595
EBIT	432	162	50	54	120	50	869	0	-23	0	846
Share of profit in associates and JVs	33	0	0	0	0	0	33	0	0	0	33
Tax on profit for the period	-101	-36	-6	-7	-22	-9	-181	0	-5	0	-186
Profit for the period	349	121	23	26	85	37	641	0	15	0	657
Segment assets:	9,533	2,256	2,007	2,554	1,697	1,609	19,657	12	10,990	-11,171	19,487
Of which goodwill	1,425	99	122	174	138	516	2,474	0	0	0	2,474
Equity investments in associates and JVs	551	0	0	0	6	0	558	0	0	0	558
Segment liabilities	6,382	1,139	1,304	1,704	1,185	532	12,246	7	2,769	-4,786	10,235
Working capital	1,226	351	546	805	689	184	3,801	0	-6	0	3,795
Net interest-bearing debt	2,070	610	977	898	732	47	5,334	5	-1,786	0	3,553
Cash flows from operating activities	193	351	61	149	115	26	895	1	44	12	952
Capital expenditure	554	47	189	84	47	16	937	0	1	0	938
Average no. of employees	1,226	745	1,027	3,871	1,221	1,634	9,724	0	14	0	9,738

2 Costs

Share-based payment: Share option programme

The company maintains an incentive programme for the Executive Management and senior managers, including the executive managements of subsidiaries. The programme entitles participants to acquire shares in Schouw & Co. at a price based on the officially quoted price at around the time of grant plus a calculated rate of interest from the date of grant until the date of exercise. The 2020 grant is described in greater detail in company announcement no. 2/2020 of 13 March 2020, but the number of options has subsequently been increased by 10,000.

Outstanding options	Executive management	Other	Total
Total outstanding options at 31 December 2019	157,000	805,333	962,333
Lapsed in 2020	0	-41,777	-41,777
Exercised in 2020	0	-23,556	-23,556
Granted in 2020	60,000	310,000	370,000
Total outstanding options at 30 September 2020	217,000	1,050,000	1,267,000

3

Receivables (current)

	30/9 2020	30/9 2019
Trade receivables	4,241	4,373
Other current receivables	273	276
Prepayments	64	66
Total current receivables	4,577	4,715

Trade receivables by portfolio company:

30/9 2020	Not fallen		Due between (days)
	due	1-30	31-90	>91	Total
Total receivables	3,539	437	164	256	4,395
Impairment losses on trade receivables	-30	-4	-3	-117	-155
Trade receivables, net	3,508	433	161	139	4,241
Proportion of total receivables expected to be settled					96.5%

30/9 2019	Not fallen	Due between (days)
	due	1-30	31-90	>91	Total
Total receivables	3,779	383	139	235	4,535
Impairment losses on trade receivables	-27	-5	-6	-124	-162
Trade receivables, net	3,751	379	133	110	4,373
Proportion of total receivables expected to be					96.4%
settled
Impairment rate	0.7%	1.2%	4.5%	52.9%	3.6%

Impairment rate 0.9% 0.9% 2.1% 45.8% 3.5%

	30/9 2020	30/9 2019
Impairment losses on trade receivables
Impairment losses, beginning of period	-171	-144
Foreign exchange adjustments	6	-2
Additions on company acquisitions	0	0
Impairment losses for the period	-17	-18
Realised loss	26	1
Impairment losses, end of period	-155	-162

4

Acquisitions

	YTD 2020	YTD 2019
Property, plant and equipment	0	325
Inventories	0	62
Receivables	0	332
Tax asset	0	16
Cash and cash equivalents	0	12
Credit institutions	0	-66
Trade payables	0	-325
Other payables	0	-6
Deferred tax	0	-33
Net assets acquired	0	316
Fair value of original ownership interest	0	-91
Goodwill	0	22
Acquisition cost	0	247
of which cash and cash equivalents	0	-6
Total cash acquisition costs	0	241

In September 2020, Borg Automotive agreed to acquire the turbocharger operations of the Spanish remanufacturing company Turbo Motor Inyección (TMI). The transaction is currently awaiting regulatory approval of the Spanish tax authorities, and closing is expected in December 2020.

In 2019, Fibertex Nonwovens acquired a company based in South Carolina, USA, and BioMar acquired the outstanding 50% of the shares in the fish feed factory Alitec Pargua S.A.

5

Capital resources

It is group policy when raising loans to maximise flexibility by diversifying borrowings in respect of maturity, renegotiation dates and counterparties, with due consideration to costs. The objective is to maintain sufficient capital resources for investing and to continue to run business operations and respond adequately to unforeseen fluctuations in cash holdings. The Group's capital resources consist of undrawn credit facilities and cash. In April 2020, the Group established new committed facilities of DKK 1 billion running for 12 months with an optional extension of a further 12 months.

		Current	Amount
Facility	Limit	debt	available Commitment	Avg. term to maturity
Revolving credit facility, club deal	2,100	259	1,841 Committed	8 mths
Standby facility	1,000	0	1,000 Committed	6 mths (+1 year)
Other credit facilities	783	599	184 Uncommitted
Schuldschein	1,013	1,013	0 Committed	3 years 11 mths
Mortgages	163	163	0 Committed	4 years 6 mths
Other long-term debt	116	116	0 Uncommitted	1 years 7 mths
Leases	754	754	0 Committed
Cash and cash equivalents			671
30 September 2020	5,928	2,904	3,696

The Group has total committed facilities of DKK 5,928 million, of which committed facilities account for DKK 5,029 million, which is equal to 230% of Schouw & Co.'s net interest-bearing debt at 30 September 2020.

6

Share capital and earnings per share (DKK)

The share capital consists of 25,500,000 shares with a nominal value of DKK 10 each. Each share carries one vote. All shares rank equally. The share capital is fully paid up and no changes have been made during the past five years.

Treasury shares	Number of shares	Nominal value (DKK)	Cost	Percentage of share capital
Treasury shares held at 1 January 2019	1,806,997	18,069,970	504	7.09%
Share option programme	-104,167	-1,041,670	-13	-0.41%
Treasury shares held at 30 Sept. 2019	1,702,830	17,028,300	491	6.68%
Share option programme	-158,550	-1,585,500	-22	-0.62%
Treasury shares held at 31 Dec. 2019	1,544,280	15,442,800	469	6.06%
Share option programme	-23,556	-235,560	-3	-0.09%
Treasury shares held at 30 Sept. 2020	1,520,724	15,207,240	466	5.96%

A total of 23,556 shares held in treasury were used in connection with options exercised in 2020. The shares had an aggregate fair value of DKK 12 million at the date of exercise.

The Group's holding of treasury shares had a market value of DKK 937 million at 30 September 2020. The portfolio of treasury shares is recognised at DKK 0.

	Q3 2020	Q3 2019	YTD 2020	YTD 2019
Share of the profit for the year attributable to shareholders of Schouw & Co.	296	317	662	659
Average number of shares			25,500,000 25,500,000 25,500,000 25,500,000
Average number of treasury shares	-1,522,541	-1,702,830	-1,528,441	-1,737,680
Average number of outstanding shares	23,977,459		23,797,170 23,971,559 23,762,320
Average dilutive effect of outstanding share options *	6,939	14,667	11,640	17,986
Diluted average number of outstanding shares			23,984,398 23,811,837 23,983,199 23,780,306
Earnings per share of DKK 10	12.36	13.31	27.61	27.73
Diluted earnings per share of DKK 10	12.36	13.30	27.59	27.71

* See note 2 for information on options that may cause dilution.

7 Fair value of categories of financial assets and liabilities

	30/9 2020	31/12 2019	30/9 2019
Financial assets
Securities (1)	0	2	1
Other securities and investments (2)	78	76	75
Derivative financial instruments (2)	35	14	38
Other securities and investments (3)	1	1	2
Financial liabilities
Derivative financial instruments (2)	23	26	34

The Group sold its holding of equities measured at the official market value (level 1) in the first quarter of 2020. Securities measured at fair value through other comprehensive income (level 3) amounted to DKK 1 million at the beginning of the year and DKK 1 million at the end of the third quarter.

The Group uses interest rate swaps and forward currency contracts to hedge fluctuations in the level of interest rates and foreign exchange rates. Forward exchange contracts and interest rate swaps are valued using generally accepted valuation techniques based on relevant observable swap curves and exchange rates (level 2). The fair values applied are calculated mainly by external sources on the basis of discounted future cash flows. Other securities and investments forming part of a trading portfolio (level 2) includes the shareholding in Incuba A/S.

The fair value of derivative financial instruments is calculated by way of valuation models such as discounted cash flow models. Anticipated cash flows for individual contracts are based on observable market data such as interest rates and exchange rates. In addition, fair values are based on non-observable market data, including exchange rate volatilities, or correlations between yield curves and credit risks. Non-observable market data account for an insignificant part of the fair value of the derivative financial instruments at the end of the reporting period.

8 Related party transactions

Under Danish legislation, Givesco A/S, Lysholt Alle 3, DK-7100 Vejle, members of the Board of Directors, the Executive Management and senior management as well as their family members are considered to be related parties. Related parties also comprise companies in which the individuals mentioned above have material interests. Related parties also comprise subsidiaries, joint arrangements and associates, in which Schouw & Co. has control, significant influence or joint control of as well as members of the boards of directors, management boards and senior management of those companies.

Management's share option programmes are set out in note 2.

	YTD 2020	YTD 2019
Joint ventures:
During the reporting period, the Group sold goods in the amount of	11	23
At 30 September, the Group had a receivable of	30	27
At 30 September, the Group had debt in the amount of	1	1
Associates:
During the reporting period, the Group sold goods in the amount of	275	220
During the reporting period, the Group bought goods in the amount of	19	55
At 30 September, the Group had a receivable of	187	161
At 30 September, the Group had debt in the amount of	23	89
During the reporting period, the Group received dividends in the amount of	0	11

During 2020, the Group has traded with BioMar-Sagun, BioMar-Tongwei, LetSea, Salmones Austral, ATC Patagonia, LCL Shipping, Young Tech Co. and Micron Specma India.

Other than as set out above, there were no transactions with related parties.

Schouw & Co. has registered the following shareholders as holding 5% or more of the share capital: Givesco A/S (28.09%), Direktør Svend Hornsylds Legat (14.82%) and Aktieselskabet Schouw & Co. (5.96%).

9

Special risks, judgements and estimates, and accounting policies

For the Group's special risks, judgements and estimates, and accounting policies please see the Management's report page 4.