Fourth quarter and year-end report 2014

Fourth quarter compared to the same period 2013

  · Net sales decreased by 4 percent to 1,252.0 (1,306.8) MSEK, and by 6 percent
at constant FX, with a decline in Norway and higher sales from Sweden and
Denmark.
  · Adjusted*operating income increased to 79.6 (77.0) MSEK, corresponding to an
improved margin of 6.4 (5.9) percent.
  · Adjusted* income for the period increased to 48.1 (16.5) MSEK, and adjusted*
earnings per share were 0.80 (0.33) SEK.
  · Adjusted* operating cash flow improved to 64.5 (-53.2) MSEK.

Full year 2014 compared to pro forma 2013

  · Net sales increased by 1 percent to 5,267.2 (5,192.4) MSEK, and were flat at
constant FX, with strong growth in Sweden and higher sales in Denmark offsetting
lower sales in Norway.
  · Adjusted* operating income decreased to 301.0 (317.2) MSEK corresponding to
a margin of 5.7 (6.1) percent, due to the termination of a major contract in
Norway as of 1 April 2014.
  · Adjusted* income for the period increased to 145.1 (89.2) MSEK and
adjusted*earnings per share rose to 2.63 (1.78) SEK, positively impacted by
lower finance expenses following the refinancing of bank loans in July 2014.
  · Adjusted* operating cash flow improved to 438.1 (176.1) MSEK, helped by a
reduction of inventories compared to an increase in the previous year.
  · The Board of Directors proposes a dividend for 2014 of 1.30 (-) SEK per
share.

*) Adjusted for non-comparable items of -6.1 (-19.8) MSEK in operating income in
Q4 and -62.5 (-154.3) MSEK
   for the full year 2014. For further details on the non-comparable items, see
page 4.

CEO Statement

Net sales for the full year 2014 were slightly up overall, with higher sales in
Sweden and Denmark offsetting a decline in Norway following the termination of
the ICA Norway contract as of 1 April 2014. Excluding this contract, net sales
rose by 7 percent in local currency. The retail market for chicken products in
Scandinavia increased by approximately 3 percent* in value for the full year.
Group sales increased ahead of the retail market in Sweden and Denmark but
behind in Norway.

Adjusted operating income and margin for the full year were lower than 2013 pro
forma due to the loss of the ICA Norway contract. The impact of the loss of this
contract was to a large extent offset by a strong performance in Sweden and
operational cost-savings. In the fourth quarter both operating income and margin
improved, benefitting from cost-savings and a more favourable inventory position
than last year.

The refinancing of the bank loans in July at lower interest rates led to
significantly lower finance expense. As a result, adjusted income for the period
and adjusted earnings per share increased strongly both for the quarter and the
full year.

Adjusted operating cash flow showed a substantial improvement for the full year,
helped by inventory reductions this year compared to increases last year.

Net sales in Sweden showed strong growth and the adjusted operating income and
margin improved both for the quarter and the full year. In Denmark, net sales
and adjusted operating income also increased for both periods.

In Norway, the process to replace the sales lost on the ICA Norway contract has
taken longer than anticipated. The decline in net sales in Norway was more
pronounced in the fourth quarter as the whole retail market for chicken products
was affected by extensive media coverage regarding bacteria in chicken. The
media focus has continued into 2015 with an ongoing negative impact on demand
for chicken products. This, in combination with the loss of the ICA contract,
will impact negatively in 2015.

In Scandi Standard we go to great lengths to safeguard the healthiness of our
products and we believe that chicken products in Norway, as well as in Sweden
and Denmark, are among the healthiest in the world. Scandinavian chicken
products are generally regarded as being of the highest quality due to the
strict standards applied on matters of animal health and welfare and the fact
that neither antibiotics nor growth hormones are used in the feed process.

Our product innovation programme delivered a number of successful product
launches in the year. We will continue to increase our efforts in this area
going forward to support our vision of Scandinavians eating chicken at least
once more per week. The acquisition of Bosarpskyckling is a valuable addition to
the Group in this respect as it creates a new platform for growth in the premium
organic segment. We are now looking to increase the number of external farms
that are able to supply organic chicken.

Our actions to improve operational efficiency continued as planned. The number
of chickens processed per employee per day in our main plant in Sweden increased
by 26 percent from 2013. In Norway, we managed to reduce operating costs but the
number of chickens processed per employee and day declined by 16 percent because
of the sharp fall in sales volumes. The lower cost base creates a good platform
for improved efficiency in production going forward.

We made good progress in many areas during 2014 and strengthened our position as
the market leader in chicken-based food products in Scandinavia. The adjusted
operating income for the Group was below our initial expectations due to the
decline in sales in Norway, but this has not caused us to change our medium-term
financial targets communicated in June 2014.

Leif Bergvall Hansen
Managing Director and CEO

For further information, please contact:

Leif Bergvall Hansen, Chief Executive Officer,   Tel: +45 22 10 05 44
Jonathan Mason, Chief Financial Officer,           Tel: +45 22 77 86 18
Patrik Linzenbold, Head of Investor Relations, Tel: +46 708 25 26 30
This interim report comprises information which Scandi Standard is required to
disclose under the Securities Markets Act and/or the Financial Instruments
Trading Act. It was released for publication at 07:30 CET on 25 February 2015.