Company announcement no. 10/2014 26 August 2014 Interim financial report for 1 January - 30 June 2014 for FirstFarms A/S Summary

The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the un-audited interim financial accounts for the period 1 January - 30 June 2014.

EBIT result in first half year of DKK 10.5 million

FirstFarms has in the accounting period realised a turnover of DKK 39.0 million, an EBIT result of DKK 10.5 million and a pre-tax result of DKK 6.8 million. The results are on par with the expected.

In the first half year, the milk price has been lower than budgeted but it has been compensated by a higher milk production than budgeted. The milk price has in Q2 been under pressure, and the prices in second half year will also be lower than budgeted. This is expected to be partly compensated by a higher milk production.

The sales prices on grain and oil seed are lower than budgeted, but price agreements entered in the spring 2014 soften the effect hereof.

The harvest yields for winter crops in Romania and Slovakia have been higher than budgeted.

FirstFarms maintains the 2014-expectations of an EBIT result of DKK 17-22 million.

Billund, 26 August 2014

FirstFarms A/S

For further information:

Please visit our website www.firstfarms.comor

contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.

Company announcement no. 10/2014 for FirstFarms A/S Page 1 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Main and key ratios


The Group Q1+Q2
The Group Q1+Q2
The Group Q2
The Group Q2
The
Group
DKK 1,000
2014
2013
2014
2013 2013

Main figures

Turnover 38,969 35,739 18,391 19,066 114,127
Gross profit/loss 13,997 10,650 4,498 7,575 21,694
Profit/loss of primary operations 10,493 4,520 3,643 4,842 11,172
Net financial items -3,667 -3,210 -2,054 -1,655 -6,674
Pre-tax result 6,826 1,310 1,589 3,187 4,498
Net profit 5,514 1,726 1,477 3,134 2,791
Non-current assets 399,405 379,280 399,405 379,280 390,977
Current assets 137,897 111,369 137,897 111,369 96,803
Total assets 537,302 490,649 537,302 490,649 487,780
Share capital 47,122 47,122 47,122 47,122 47,122
Equity 328,220 318,481 328,492 318,481 320,819
Non-current liabilities 104,919 44,599 104,646 44,599 89,843
Current liabilities 104,163 127,569 104,164 127,569 77,118

Cash flow from primary operations -29,106 -6,836 -22,420 -1,115 18,302
Cash flow from operations -33,241 -10,685 -24,400 -2,754 9,329
Cash flow for investment, net -13,642 1,548 -309 -3,666 -16,414
Of which for investment
in tangible assets -23,957 -11,001 -12,421 -4,778 -28,106
Cash flow from financing 13,284 7,173 8,729 724 30,733
Total cash flow -33,599 -1,964 -15,980 -5,696 23,648

Key figures

Gross margin 35.9 29.8 24.5 39.7 19.0
Operating margin 26.9 12.6 19.8 25.4 9.8
Solvency ratio 61 65 61 65 66
Earnings per share, DKK 1.17 0.37 0.31 0.67 0.59
Diluted earnings per share, DKK 1.17 0.37 0.31 0.67 0.59

Return on shareholders' equity 3.4 1.1 1.8 3.9 0.9
Average number of employees 204 199 207 197 198

Company announcement no. 10/2014 for FirstFarms A/S Page 2 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Management report for the period 1 January - 30 June 2014

FirstFarms has in the accounting period realised a turnover of DKK 39.0 million, an EBIT result of DKK 10.5 million and a pre-tax result of DKK 6.8 million. The results are on par with the expected.

In the first half year, the equity has increased with DKK 7.4 million, which is composed by a profit of DKK 5.5 million and an exchange rate adjustment of DKK 1.9 million, which is due to an increase in the Romanian currency.

In the first half year, the milk price has been lower than budgeted but it has been compensated by a higher milk production than budgeted. The milk price has in Q2 been under pressure, and the prices in second half year will also be lower than budgeted. This is expected to be partly compensated by a higher milk production.

The sales prices on grain and oil seed are lower than budgeted, but price agreements entered in the spring 2014 soften the effect hereof.

The harvest yields for winter crops in Romania and Slovakia have been higher than budgeted.

Risk assessment

FirstFarms has in the annual report for 2013 described the most essential risks for the company, and it is the management's opinion that this description is still adequate. The annual report and the risk assessment can be found on the company's website www.firstfarms.com.

Accounting policies

The interim financial report is prepared in accordance with IAS 34 "Presentation of interim financial reports" as adopted by the EU and Danish disclosure requirements for listed companies.

Accounting policies are, except for the below mentioned, unchanged compared to the consolidated financial statement and annual report for 2013, to which is referred.

FirstFarms A/S has implemented the standards and interpretations, which become effective for 2014. None of these standards have affected recognition and measurement in 2014.

The consolidated financial statement and annual report for 2013 contains the full description of accounting policies.

Company announcement no. 10/2014 for FirstFarms A/S Page 3 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Expectations for 2014

FirstFarms maintains the 2014-expectations of an EBIT result of DKK 17-22 million.

Financial calendar for 2014

25 November 2014 Interim financial report for 1 January - 30 September 2014

Company announcement no. 10/2014 for FirstFarms A/S Page 4 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Management statement

The Management and Board of Directors of FirstFarms have today discussed and approved the interim financial report of FirstFarms A/S for the period 1 January - 30 June 2014.

The interim financial accounts, which has not been audited or reviewed by the independent auditors of the Company, has been prepared in accordance with IAS 34 - "Interim Financial Reporting" as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

In our opinion the interim financial accounts gives a true and fair view of the Group's assets, liabilities and financial position at 30 June 2014 and of the results of the Group's operations and cash flows for the period 1 January - 30 June 2014.

Further, in our opinion the Management's review gives a true and fair overview of the development in the Group's operations and financial matters, the results of the Group's operations and the Group's financial position as a whole.

Billund, 26 August 2014

Management

Anders H. Nørgaard

CEO

Board of Directors



Henrik Hougaard Asbjørn Børsting Jens Bolding Jensen

Chairman


John Christian Aasted Bent Juul Jensen

Company announcement no. 10/2014 for FirstFarms A/S Page 5 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Income statement

The

Group

The

Group

The

Group

The

Group

The

Group

Q1+Q2

Q1+Q2

Q2

Q2

DKK 1,000 2014 2013 2014 2013 2013

Turnover

Value adjustment of biological assets

38,969

6,032

35,739

8,275

18,391

3,579

19,066

4,735

114,127

18,511

Production costs

-44,861

-44,429

-24,456

-21,804

-132,349

Grants

13,857

11,065

6,984

5,578

21,405

Gross profit/loss

13,997

10,650

4,498

7,575

21,694

Other operating income

1,549

124

1,203

73

365

Administration costs

-5,053

-6,126

-2,058

-2,810

-10,442

Other operating costs

0

-128

0

4

-445

EBIT-result

10,493

4,520

3,643

4,842

11,172

Financial income

0

3

0

-19

76

Financial costs

-3,667

-3,213

-2,054

-1,636

-6,750

Pre-tax result

6,826

1,310

1,589

3,187

4,498

Tax on net profit

-1,312

416

-112

-53

-1,707

Net profit

5,514

1,726

1,477

3,134

2,791



Earnings per share, DKK 1.17 0.37 0.31 0.67 0.59
Diluted earnings per share,
DKK 1.17 0.37 0.31 0.67 0.59

Total income statement


The Group Q1+Q2

The Group Q1+Q2

The Group Q2

The Group Q2
The

Group
DKK 1,000

2014

2013

2014

2013 2013
Net profit 5,514 1,726 1,477 3,134 2,791

Other total income

Items, which can be re- classified to the income statement:

- Exchange rate adjustments

by conversion of foreign

units

1,887

-1,652

1,733

-2,323

-806

- Tax of other total income

0

0

0

0

0

Other total income after tax

1,887

-1,652

1,733

-2,323

-806

Total income

7,401

74

3,210

811

1,985



Company announcement no. 10/2014 for FirstFarms A/S Page 6 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Balance


The
Group

Q1+Q2
The
Group

Q1+Q2
The

Group
DKK 1,000

ASSETS Non-current assets Intangible assets


2014

2013 2013
Goodwill 16,052 16,058 16,060
Land lease contracts 4,943 0 1,127
Milk quota 1,470 3,431 2,452

Total intangible assets 22,465 19,489 19,639



Tangible assets

Land and buildings 250,581 250,599 254,969
Plant and machinery 71,763 60,546 65,782
Fixtures and fittings, tools and equipment 1,952 2,012 1,982
Fixed assets under construction 11,495 8,039 9,163

Total tangible assets 335,791 321,196 331,896



Biological assets

Basic herd 25,321 23,492 23,704

Total biological assets 25,321 23,492 23,704



Other non-current assets

Deferred tax asset 15,828 15,103 15,738

Total other non-current assets 15,828 15,103 15,738



Total non-current assets 399,405 379,280 390,977



Current assets

Inventories 18,737 17,969 27,637
Biological assets - breeding and crops 78,207 71,659 37,335
Receivables 15,311 3,276 9,677
Other receivables 23,016 15,415 6,091
Accruals and deferred expenses 2,112 235 2,206
Cash at bank and in hand 514 2,815 13,857

Total current assets 137,897 111,369 96,803



TOTAL ASSETS 537,302 490,649 487,780



Company announcement no. 10/2014 for FirstFarms A/S Page 7 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund


The
Group

Q1+Q2
The
Group

Q1+Q2
The

Group
DKK 1,000

EQUITY AND LIABILITIES Equity


2014

2013 2013
Share capital 47,122 47,122 47,122
Reserve for decrease of share capital 424,102 424,102 424,102
Reserve for exchange rate adjustment -18,660 -21,565 -20,558
Transferred result -124,344 -131,178 -129,847
Proposed dividend 0 0 0

Total equity 328,220 318,481 320,819



Liabilities Non-current liabilities

Deferred tax 12,123 9,821 10,467
Credit institutions 43,291 34,778 30,007
Convertible bonds 49,505 0 49,369

Total non-current liabilities 104,919 44,599 89,843



Current liabilities

Credit institutions 51,764 46,101 31,504
Trade payables and other payables 37,886 65,604 30,009
Corporation tax 0 0 604
Accruals and deferred income 14,513 15,864 15,001

Total current liabilities 104,163 127,569 77,118



Total liabilities 209,082 172,168 166,961



TOTAL EQUITY AND LIABILITIES 537,302 490,649 487,780



Company announcement no. 10/2014 for FirstFarms A/S Page 8 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Equity statement (Condensed)


The Group The Group

DKK 1,000 Q1+Q2 2014 Q1+Q2 2013

EQUITY STATEMENT

Equity 1 January

320,819

318,407

Result of the period

5,514

1,726

Other total income

1,887

-1,652

Total income for the period

7,401

74

Equity 30 June

328,220

318,481



Cash flow statement


The Group The Group
DKK 1,000

Q1+Q2
2014

Q1+Q2

2013

Pre-tax result 6,826 1,310 Cash generated from operations (operating activities) before changes in working capital 12,743 11,800 Cash flow from primary activities -29,106 -6,836 Cash flow from operating activities -32,241 -10,685 Cash flow from investing activities -13,642 1,548 Cash flow from financing activities 13,284 7,173 Total cash flow -33,599 -1,964

Available, at the beginning -17,648 -41,347
Exchange rate adjustment of available -3 25

Available at closing -51,250 -43,286 Available at closing is recognised as follows:

Available funds 514 2,815
Current bank debt -51,764 -46,101
Available at closing -51,250 -43,286

Company announcement no. 10/2014 for FirstFarms A/S Page 9 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

Segment information Q1+Q2 2014

DKK 1,000
Romanian activities

Slovakian activities

Total report compulsory segments

Total segment turnover 1,682 37,287 38,969
Grants 4,576 9,281 13,857
Value adjustment of biological assets 3,500 2,532 6,032
Financial income 0 0 0
Depreciations 4,843 4,554 9,397
Segment result before tax 1,379 8,305 9,684
Segment assets 173,664 363,160 536,824
Plant investments *) 9,994 13,963 23,957
Segment liabilities 125,956 233,481 359,437
*) Plant investments are investments in machinery, land and buildings.

Q1+Q2 2013

DKK 1,000
Romanian activities

Slovakian activities

Total report compulsory segments

Total segment turnover 5,583 30,156 35,739
Grants 3,207 7,858 11,065
Value adjustment of biological assets 5,000 3,275 8,275
Financial income 0 3 3
Depreciations 1,038 7,208 8,246
Segment result before tax 6,121 -4,031 2,090
Segment assets 152,346 339,337 491,683
Plant investments *) 3,855 7,146 11,001
Segment liabilities 117,208 226,319 343,527
*) Plant investments are investments in machinery, land and buildings.

Reconciliation of report compulsory segments result

DKK 1,000
Q1+Q2
2014
Q1+Q2

2013

Segment result before tax for report compulsory segments 9,397 2,090
Non-allocated result, Group function -2,571 -780

Result of continued operations before tax, cp. income statement 6,826 1,310

Company announcement no. 10/2014 for FirstFarms A/S Page 10 of 10

FirstFarms A/S

Majsmarken 1 - 7190 Billund - Danmark - Tel.: +45 7586 8787 www.firstfarms.dk - www.firstfarms.com - info@firstfarms.com CVR no.: 28312504 - Registered office: Billund

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