Danish Crown Reports Stable Semi-Annual Financials

Randers, 13 May 2013 In the first six months of the fiscal year 2012/13, the group's revenue was DKK 28.5 billion, a DKK 1 billion increase from the same period in the previous year. The net profit was DKK 714 million, which is comparable to the interim profit of DKK 737 million from the previous year. The consistent results can be attributed to slightly improved fresh meat prices and the successful efforts of the group's processing companies to transfer the rising raw material costs to retail market prices. "I am pleased that we have managed to hold our ground in a difficult market," says Kjeld Johannesen, CEO of Danish Crown. Danish Crown, the world's largest pork exporter, has been affected by the weaker dollar and yen compared to the euro, impacting pork market prices in H1 2012/2013. "In the first half, we experienced larger than anticipated pork supplies in the global market, which naturally affected prices – and consequently Danish Crown and its owners," Johannesen explains. The meat industry experiences noticeable seasonal variations, and the delayed start of the barbecue season is influencing price trends at the start of the second half of the fiscal year. The Swedish segment of DC Pork and the Polish company Sokolow have made significant positive contributions. "Overall, we anticipate the second half's profit to be similar to the first half, considering the slightly weaker fresh meat earnings and improved earnings at DC Foods," Johannesen predicts. Key figures for Danish Crown* DKKm H1 2012/13 H1 2011/12 Revenue 28,509 27,565 Operating profit 974 937 Net profit for the period 714 737 Balance 26,309 24,919 Equity 5,240 4,939 Capital base including subordinated loans 5,745 5,993 Cash flows from operating activities 526 646 Cash flows from investing activities -612 -763 Supplies by members, millions of kg 676 724 No. of employees 23,036 24,139 * Group accounting figures include Leverandørselskabet Danish Crown AmbA.