Premium Pork International A/S

Annual Report 2024

Dannevirkevej 6, 7000 Fredericia,

Reg. no. 37 87 50 58

Annual Report

January 1st – December 31st, 2024

Presented and adopted at the Annual General Meeting on 3

of April 2025.

Chairman of the Annual General Meeting:

Bo Holse

Annual Report 2024

Table of Content

Management’s Statement of the Annual Report

Independent Auditor’s Report

Consolidated Financial Highlights

Company Information

Management Review

Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Parent Financial Statements

Notes to the Parent Financial Statements

Table of Content

Annual Report 2024

Management’s Statement of the Annual Report

Executive Board

Lars V. Drescher Morten Beider

CEO CFO

Board of Directors

Torben Svejgård Carsten Lind Pedersen

Chairman Board Member

Ole Sloth Nielsen Bo Holse

Board Member Board Member

Jytte Rosenmaj

Board Member

Management’s Statement

The Board of Directors and the Executive Board have today

considered and approved the annual report of Premium Pork

International A/S for the financial year 1 January to 31 December

2024.

The annual report is prepared in accordance IFRS Accounting

Standards as adopted by the EU and Danish disclosure requirements.

In our opinion, the consolidated financial statements and the parent

financial statements give a true and fair view of the Group’s and the

Parent’s financial position at 31.12.2024 and of the results of their

operations and cash flows for the financial year 2024.

In our opinion, the management commentary contains a fair review of

the development of the Group's and the Parent’s business and

financial matters, the results for the year and of the Parent’s financial

position and the financial position as a whole of the entities included

in the consolidated financial statements.

We recommend the annual report for adoption at the Annual General

Meeting.

Fredericia, 10

of March 2025

Annual Report 2024

Independent auditor’s report on the annual report

for the period 01.01.2024 - 31.12.2024

Auditor’s Review

Opinion

We have audited the consolidated financial statements and

the parent financial statements of Premium Pork

International A/S for the financial year 01.01.2024 -

31.12.2024, which comprise the income statement, statement

of comprehensive income, balance sheet, statement of

changes in equity, cash flow statement and notes, including a

summary of significant accounting policies, for the Group as

well as the Parent. The consolidated financial statements and

the parent financial statements are prepared in accordance

with IFRS Accounting Standards as adopted by the EU and

additional requirements of the Danish Financial Statements

Act.

In our opinion, the consolidated financial statements and the

parent financial statements give a true and fair view of the

Group’s and the Parent’s financial position at 31.12.2024, and

of the results of their operations and cash flows for the

financial year 01.01.2024 - 31.12.2024 in accordance with

IFRS Accounting Standards as adopted by the EU and

additional requirements of the Danish Financial Statements

Act.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (ISAs) and the additional requirements

applicable in Denmark. Our responsibilities under those

standards and requirements are further described in the

Auditor’s responsibilities for the audit of the consolidated

financial statements and the parent financial statements

section of this auditor’s report.

We are independent of the Group in accordance with the

International Ethics Standards Board of Accountants' Code of

Ethics for Professional Accountants (IESBA Code) and the

additional ethical requirements applicable in Denmark, and

we have fulfilled our other ethical responsibilities in

accordance

with these requirements and IESBA Code. We believe that the

audit evidence we have obtained is sufficient and appropriate

to provide a basis for our opinion.

Statement on the management commentary

Management is responsible for the management

commentary.

Our opinion on the consolidated financial statements and the

parent financial statements does not cover the management

commentary, and we do not express any form of assurance

conclusion thereon.

In connection with our audit of the consolidated financial

statements and the parent financial statements, our

responsibility is to read the management commentary and, in

doing so, consider whether the management commentary is

materially inconsistent with the consolidated financial

statements and the parent financial statements, or our

knowledge obtained in the audit or otherwise appears to be

materially misstated.

Moreover, it is our responsibility to consider whether the

management commentary provides the information required

by relevant law and regulations.

Based on the work we have performed, we conclude that the

management commentary is in accordance with the

consolidated financial statements and the parent financial

statements and has been prepared in accordance with the

information required by relevant law and regulations. We did

not identify any material misstatement of the management

commentary.

Management’s responsibilities for the consolidated

financial statements and the parent financial

statements

Management is responsible for the preparation of

consolidated financial statements and parent financial

statements that give a true and fair view in accordance with

IFRS Accounting Standards as adopted by the EU and

additional requirements of the Danish Financial Statements

Act, and for such internal control as Management determines

is necessary to enable the preparation of consolidated

financial statements and parent financial statements that are

free from material misstatement, whether due to fraud or

error.

In preparing the consolidated financial statements and the

parent financial statements, Management is responsible for

assessing the Group’s and the Parent’s ability to continue as

a going concern, for disclosing, as applicable, matters related

to going concern, and for using the going concern basis of

accounting in preparing the consolidated financial

statements and the parent financial statements unless

Management either intends to liquidate the Group or the

Entity or to cease operations, or has no realistic alternative

but to do so.

Auditor’s responsibilities for the audit of the

consolidated financial statements and the parent

financial statements

Our objectives are to obtain reasonable assurance about

whether the consolidated financial statements and the parent

financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an

auditor’s report that includes our opinion. Reasonable

assurance is a high level of assurance but is not a guarantee

that an audit conducted in accordance with ISAs and the

additional requirements applicable in Denmark will always

detect a material misstatement when it exists.

Annual Report 2024

Independent auditor’s report on the annual report

for the period 01.01.2024 - 31.12.2024

Auditor’s Review

Auditor’s responsibilities for the audit of the annual report

(continued)

Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic

decisions of users taken on the basis of these consolidated

financial statements and these parent financial statements.

As part of an audit conducted in accordance with ISAs and the

additional requirements applicable in Denmark, we exercise

professional judgement and maintain professional skepticism

throughout the audit. We also:

• Identify and assess the risks of material misstatement of

the consolidated financial statements and the parent

financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a

material misstatement resulting from fraud is higher than

for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the

override of internal control.

• Obtain an understanding of internal control relevant to the

audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the Group’s

and the Parent’s internal control.

• Evaluate the appropriateness of accounting policies used

and the reasonableness of accounting estimates and

related disclosures made by Management.

• Conclude on the appropriateness of Management’s use of

the going concern basis of accounting in preparing the

consolidated financial statements and the parent financial

statements, and, based on the audit evidence obtained,

whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Group's

and the Parent’s ability to continue as a going concern. If

we conclude that a material uncertainty exists, we are

required to draw attention in our auditor’s report to the

related disclosures in the consolidated financial statements

and the parent financial statements or, if such disclosures

are inadequate, to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our

auditor’s report. However, future events or conditions may

cause the Group and the Entity to cease to continue as a

going concern.

• Evaluate the overall presentation, structure and content of

the consolidated financial statements and the parent

financial statements, including the disclosures in the notes,

and whether the consolidated financial statements and the

parent financial statements represent the underlying

transactions and events in a manner that gives a true and

fair view.

• Plan and perform the group audit to obtain sufficient

appropriate audit evidence regarding the financial

information of the entities or business units within the

group as a basis for forming an opinion on the consolidated

financial statements and the parent financial statements. We

are responsible for the direction, supervision and review of

the audit work performed for purposes of the group audit. We

remain solely responsible for our audit opinion.

We communicate with those charged with governance

regarding, among other matters, the planned scope and timing

of the audit and significant audit findings, including any

significant deficiencies in internal control that we identify

during our audit.

Odense 10

of March 2025

Deloitte

Statsautoriseret Revisionspartnerselskab

Central Business Registration

No. 33 96 35 56

Bo Damgaard Hansen

State Authorised Public Accountant

Identification No (MNE) mne34543

Abdul Wahab Ashraf

State Authorised Public Accountant

Identification No (MNE) mne46664

Annual Report 2024

Consolidated Financial Highlights

Financial Highlights

Definitions of financial ratios:

Adjusted EBITDA EBITDA adjusted for price effect on fair value adjustment of biological assets and any special items

Gross margin Gross profit / Total Income x 100

Adjusted EBITDA margin Adjusted EBITDA / Total Income x 100

EBIT margin EBIT / Total Income x 100

Return on invested capital Net financials / Avg. net interest-bearing debt x 100

Return on equity Net Profit / Avg. equity x 100

Solvency ratio Equity / Total assets x 100

Current Ratio Current assets / current liabilities x 100

2024 2023 2022 2021 2020

Employees:

Average number of employees

353 292 333 446 498

Production Scope:

Average number of sows

14.088 12.919 10.961 13.078 14.313

Number of pigs produced

412.217 374.353 324.354 396.841 427.887

Produced pigs per avg. sow

29,3 29,0 29,6 30,3 29,9

Ratios:

Gross margin

33,9% 37,9% 31,8% 18,1% 20,6%

Ajusted EBITDA margin 26,1% 25,4% 7,6% 7,2% 21,6%

EBIT margin

7,6% 16,0% 2,7% -13,7% -10,5%

Return on invested capital 4,7% 9,1% 1,2% -5,4% -5,3%

Return on equity

2,7% 7,8% -1,1% -10,5% -11,4%

Solvency ratio

61,8% 63,7% 57,3% 51,6% 50,9%

Current Ratio

131% 138% 121% 117% 122%

EUR '000

2024 2023 2022 2021 2020

Profit & Loss

Revenue 70.546 61.631 40.360 43.184 68.876

Total income 72.863 67.020 52.216 47.929 66.673

EBITDA 13.123 18.405 9.367 2.364 1.547

19.012 17.009 3.944 3.474 14.412

Operating profit/loss (EBIT) 5.503 10.722 1.407 -6.559 -6.991

Net financials -2.657 -3.198 -2.309 -3.614 -3.650

Profit/loss for the period 2.364 6.325 -829 -8.414 -8.912

Balance sheet:

Total assets 144.361 135.328 134.990 146.643 164.840

5.182 1.309 1.148 2.419 8.837

Equity 88.801 86.146 77.293 75.690 83.886

Invested capital 113.875 119.123 117.386 115.458 128.187

Net interest-bearing debt 34.447 35.506 44.096 42.117 52.621

Cash flow:

Cash flow from operating activities

2.041 13.603 -2.681 6.996 17.865

Cash flow from investing activities -1.281 -4.452 -1.296 1.356 -10.623

Cash flow from financing activities 266 -10.083 -8.209 -2.106 -5.309

Investment in property, plant and

equipment

Adjusted EBITDA (excl. fair value

adjust. bio assets and Special Items)

Annual Report 2024

Company Information

About us

Main activity

The main activity has been to operate pig production, focusing on sales of finishers through subsidiaries in Romania.

The group manages all activities related to pig production, having all required production divisions: reproduction and genetics, maternity and

finisher barns. As secondary activities, the group has its own feed production divisions as well as manure management.

✓ Integrated pig production: breeding, reproduction,

maternity, finishers

✓ The best Danish expertise and genetics

✓ Internal logistics for animals and feed

✓ Own Feed Mills

✓ Management of natural fertilizer

Annual Report 2024

Development in the financial year and financial positions

Management Review

EUR '000

2024 2023 2024 2023 2024 2023

Total income 72.863 67.020 71.126 66.315 1.737 705

76.873 65.624 75.136 64.920 1.737 705

EBITDA 13.123 18.405 14.324 18.512 -1.202 -107

19.012 17.009 20.213 17.116 -1.202 -107

EBIT 5.503 10.722 11.040 14.061 -5.537 -3.338

Profit before tax 2.847 7.524 9.957 12.343 -7.110 -4.819

EBITDA excl. fair value adjust. biological

assets and excl. Special Items

Other (incl. non-

operating)

Pig production

(operating)

Consolidated total

Total income without fair value adjust.

biological assets

Satisfactory market conditions off sets challenges with African

Swine Fever (ASF)

The year shows, without fair value adjustment, a profit before tax of approx.

EUR 6.8m compared to EUR 6.1m in 2023. And shows with the negative fair

value adjustment of herds of EUR 4.0m, a profit of EUR 2.8m compared to EUR

7.5m in 2023.

The consolidated total income without fair value adjustment was EUR 76.9m in

2024 (+17% compared to 2023). With fair value adjustment total income is up

EUR 5.8m (+9%) from 2023.

The increase in total income is a combination of bigger production but lower

prices for slaughter pigs. Government grants of EUR 1.4m supporting Romanian

businesses in general also contribute to the increase. The sales price decreased

12% compared to last year (from 2.46 to 2.17 EUR per kg) having a negative

impact of EUR 7.5m compared to last year’s price.

The feed prices decreased by 12% which had a positive impact of EUR 4.4m

compared to last year’s price. Combined with the drop in the pig prices left a

net-decline in the overall profitability of EUR 3.2m.

Production increases, driven by restart of several farms, temporarily closed due

to outbreaks of ASF prior 2024, have a significant positive impact. But ASF

outbreaks in January 2024 delayed the return to full production and the

production capacity has only been utilized in average with approx. 70% in 2024.

Direct loses due to ASF has a significant negative financial impact in 2024 as

Premium Porc farm was infected in January 2024 and Fantanele farm end of

2024 (confirmed in January 2025). Despite Premium Porc farm being restarted

successfully and very fast, the negative impact of the outbreak is still big (EUR

3.3m). And the outbreak in Fantanele impacts 2024 negatively with EUR 1.9m.

Temporarily closed farms due to outbreaks in the past, combined with the two

new ASF outbreaks, had a total negative impact of EUR 7.1m in 2024 compared

to EUR 4.8m last year.

The equity increased 3% to EUR 88.8m compared to YE 2023 (EUR 86.1m) and

the solvency ratio is solid, 62%. Also, the Group’s liquidity reserves YE 2024 are

at a satisfactory level of EUR 11.2 million.

Overall assessment

The net result is not satisfactory

as operations continue to be

negatively influenced by ASF

outbreaks and implications of

the presence of ASF in general.

Satisfactory prices for pigs and

feed were on the other hand an

important factor supporting a

satisfactory result from the

operating farms.

Annual Report 2024

Pork prices 12% down compared to last year

Although lower than last year, the average sale prices reached again a strong and

satisfactory level. The realized prices are significantly higher than the level prior 2023.

The weaner market also remained strong and only dropped 2% compared to last year’s

record. The financial importance of a strong weaner market is significant considering

21% of our sold pigs were sold as weaners.

The high pig price level (above €2 per kg) since Q3 2022 is supply driven by a dramatic

reduction of the European pig production since 2021 (approx. 13%). The reduction has

stopped, and the slaughtering is now stabilized at the same reduced level as last year.

Although the demand for pork also is reduced compared to a few years ago, the

reduction in supplies is significantly bigger shifting the overall market balance.

Herd counts across Europe indicate steady or even reduced production in a foreseeable

future. The expected supply supports satisfactory prices for 2025.

Pork and feed prices declining but remain at a profitable level

Management Review

Feed prices also 12% down

Feed prices were 12% lower in 2024 compared to last year. This decrease was expected as it

matches the price level for the second half of 2023. Cereal prices in harvest 2023, which

largely determines feed costs up to harvest 2024, were 10-15% lower than the record high

prices registered in 2022.

Until harvest 2020, feed prices were relatively stable for several years. This trend has certainly

changed. Although decreased compared to 2022, the average price of raw materials

consumed in 2024 is 33% higher as compared to 2019.

We don’t expect a return to harvest 2019 prices, but we do believe that the cereal prices

peaked in 2022. We realized cereal prices for 2024 harvest approx. 5% lower than the harvest

prices in 2023 supporting slightly lower feed prices for 2025. We expect the price of raw

materials to decline further although still at a high level compared to “old” price levels.

The price level is now back to profitable levels

The price ratio between pork and feed of 7.0 for 2024 is like last year and significantly above

the record low in 2021! Although the ratio is unchanged, the profitability outcome is negative

due to pig prices being lower. The reduced prices represents a reduced profit before tax of

EUR 3.2m in 2024 compared to the same production with 2023 prices.

Compared to 2019 prices, where the price ratio was at the same level, we would have

generated approx. EUR 6.2m less in profit before tax if repeating 2019-prices.

Herd valuation decreased by EUR 4.0m due to lower pig prices YE 2024

The market prices of biological assets (the pig herd) have followed the fluctuations in the pork

prices. Consequently, the value of biological assets is decreased by EUR 4.0m compared to

the equivalent, if prices of 31.12.2023 were to be used.

The adjustment is in line with international accounting principles, which are considered to

provide a more accurate description of the company’s activities and financial position

2017 2018 2019 2020 2021 2022 2023

2024

Pork Prices (carcass)

EUR/kg

1,66 1,42 1,63 1,52 1,32 1,90 2,46 2,17

Feed Prices

EUR/kg

0,21 0,22 0,23 0,24 0,26 0,35 0,35 0,31

Exchange ratio pork:feed 7,9 6,5 7,1 6,4 5,1 5,5 7,0 7,0

Note: The table show realized prices from the subsidiaries in Romania as an annual average after ASF related discounts.

Pork and feed prices in Romania

1,50

1,75

2,00

2,25

2,50

2,75

Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024

EUR per kg carcass

Realized sales prices

(quarterly averages)

Annual Report 2024

Our pig production continue battles with ASF

Management Review

Our pig production is increasing again as closed farms gradually are restarted

– despite an ASF outbreak in January temporarily closing 15-20% of our capacity

The overall capacity utilization, measured in number of sows, registered a 4% increase compared to YE 2023

despite the reduction of the sow herd caused by an ASF outbreak in Premium Porc farm in January 2024. A fast

restart of the farm made a full repopulation of the sow-herd possible by YE 2024. Restarting of Olsuin towards

end of 2023 have more than off-set the missing production from Premium Porc farm, explaining the 10% increase

of pigs produced despite the closing of Premium Porc farm.

We have in 2024 continued the process of returning the sales mix towards fattening most of our pigs and limit the

sale as weaners by restarting of the temporarily closed finisher farms. All farms, except for a small one closed in

October 2024 due to ASF, was operating by end of 2024. The restarted finisher farms are the main reason for the

production in kg increasing by 35% compared to 2023 considering number of pigs only increased by 10%.

Romania supports pig welfare

Based on the Romanian support scheme, we applied for grants to

improve animal welfare in pig production. The grant we applied for in

2024 has been recognized in total income by EUR 4.8m, representing

95% of the total value applied for. Payment is expected during the 1

half of 2025.

In 2024 we have received payments of EUR 3.9m for animal welfare

support, for which we applied for in 2023. This represents EUR 0.1m

more than allocated by the end of 2023. In total, grants for improved

animal welfare of EUR 4.9m are registered in 2024, 24% up from the

same period last year due to higher production.

The subsidy amount is far from a net gain, as we could reduce the

significant costs related to meeting the requirements for the subsidy

in case it ceased to exist.

Restarting farms and young sow herds have affected the overall productivity negatively, but different challenges

in production have furthermore negatively affected production efficiency. The overall efficiency has improved in

2024 compared to H2 2023, but is still not at a satisfactory level and 5-10% below the efficiency level achieved in

the past. The two new sow herds started at promising efficiency levels and our expectations are high.

Another ASF outbreak in January 2025 unfortunately destroys our plan of reaching full production in 2025. This

new outbreak (see next page) affects our biggest sow farm representing 40% of our total capacity.

2020 2021 2022 2023

2024

Diff. Y24

over Y23

Number of sows end of year heads 17.956 9.449 11.308 16.044 16.764 4%

Out of which sows to be culled heads 3.203 0 0 0 6.847

Weaned piglets per avg. sow heads 34,3 32,5 33,8 32,7 32,5 -1%

Produced pigs per avg. sow *)

heads 30,6 30,3 31,7 29,0 29,3 1%

Sold slaughterpigs heads 423.981 291.477 199.332 193.180 255.158 32%

Sold weaners (net) heads -3.457 60.054 95.574 142.400 71.164 -50%

Produced pigs total heads 427.887 396.841 324.354 374.353 412.217 10%

Weight produced pigs **)

tons 51.689 36.954 26.289 28.002 37.937 35%

Facts about the pig production

Notes: *) Produced pigs per sow for 2023 are excluding restart of Olsuin and for 2022 & 2024 excluding restart of Premium Porc. **) Weight of

pigs culled due to ASF included.

10.000

20.000

30.000

40.000

50.000

60.000

2020 2021 2022 2023 2024

Weight produced pigs (tons)

Realized production compared to potential if

all capacities would have been accessable

Production potentiale

without ASF

The number of pigs produced in 2024 is still 27% down compared to

pre-ASF production.

And measured in weight produced even more below, underlining

that utilization of our production capacities still is low.

Annual Report 2024

Production affected

by African Swine Fever (ASF) in Romania

Management Review

Since the beginning of June 2018, more than 6.600 outbreaks of African Swine Fever (ASF)

are registered at national level. The entire Romania has been considered affected since

2019 and continues to register a significant number of outbreaks.

Indirect losses caused by ASF in Romania

The biosecurity in all our farms remains at a very high level and best-in-class according to

international experts. Nevertheless, we experience a huge burden on our operations, due to

the measures taken by the authorities and especially ourselves to control the virus.

Surveillance/protection zones caused by ASF outbreaks in areas close to our farms have

repeatedly impacted our production flows negatively, due to restrictions on moving animals

in and out of the blocked farms. Except for the zoning of our Consinterfin farm caused by

the outbreak in the neighboring Premium Porc farm, no zoning has affected us in 2024.

We work, in close collaboration with the authorities, toward lifting the zonings as soon as

procedures and disease control allow. We are often able to continue production unaffected

on the blocked farms, if the zoning is lifted in 4-6 weeks, due to the measures we have

taken to adjust our production flow.

The indirect losses caused by the restrictions due to ASF outbreaks is not compensated by

the authorities. These indirect losses arises from: lower sale prices due to special handling

of pigs from ASF areas (thermal treatment), lost production in finishers farms not being

supplied with weaners and extra costs to compensate for disrupted production flows.

The indirect loss in 2024 caused by zoning of the one farm was limited to approx. EUR

0.3m as the zoning lasted less than 6 weeks. No indirect losses registered in 2023.

Direct losses caused by ASF outbreaks in our farms

Following the outbreaks on our farms in previous years, production was significantly

downsized until the farms could be restarted again. Obviously, our goal is to avoid

additional outbreaks. We believe our biosecurity set-up is a powerful tool to increase our

probability of avoiding additional outbreaks.

An outbreak in Premium Porc farm occurred at the end of January 2024 underlining that

even best-in-class biosecurity is not enough to prevent outbreaks completely. This farm

had 3,000 sows with a capacity for finishing half of the piglets while the other half is

transferred to other farms in the Group. All 21,000 pigs were culled. The farm is restarted

successfully during 2024, and the sow herd was almost reestablished by YE 2024.

The value of the herd as well as the immediate costs were compensated by the Romanian

State whereas the subsequent business interruption loss isn’t compensated. The negative

financial impact was approx. EUR 3.3m in 2024 and an additional negative impact of €1.3m

is expected in 2025 until the farm is in full operation in Q2 2025.

All farms with outbreaks in 2021 and 2022 are back in operation by end of 2024 although

some production flows still are in restart phase.

The loss for the Group caused by the ASF outbreaks in 2021 and 2022 amounts for 2024 to

approx. EUR 2.1m (EUR 4.8m same period last year) due to the non-covered costs

originating from the farms closed. Adding the business interruption triples the loss.

A new ASF outbreak confirmed in January 2025

A new outbreak in Fantanele farm (part of Degaro) was confirmed early January 2025. The

infection most likely happened in December 2024. This farm had 6,700 sows with transfer

of piglets and weaners to other farms in the Group. All 51,000 pigs were culled.

The value of the herd as well as the immediate costs will be compensated by the Romanian

State whereas the total subsequent loss including business interruption will have a

negative financial impact of approx. EUR 8-10m from infection until mid-2026 when the

farm is expected to be in full operation. The restart plan is like Premium Porc in 2024 as we

plan for it to be restarted as fast as possible having the sow herd reestablished by YE 2025.

A part of the loss, EUR 1.9m, is registered as Special Item in 2024 following the timeframe

for the actual infection.

We are determined and focused on our strategy to be the company who masters

the art of producing pigs in an ASF environment.

Evolution of new outbreaks in Romania

(per week / from 2018 to December 2024)

2024 205

2023 749

2022 384

2021 1.534

2020 903

2019 1.729

2018 1.158

Total 6.662

Registered ASF-outbreaks

in Romania in domestic pigs

Annual Report 2024

Litigations for relocation of Negreni farm

Management Review

A group of citizens in Negreni village brought charges in 2016 claiming our farm

should be relocated. Their claim is based on a Government Order from 2014

stipulating that distances from farm operations to the neighboring houses should

be minimum 1,500m.

Our advisors, as well as the authorities that have assessed and validated our

production and building permits, agree that this Order was meant to cover future

constructions only and not farms and houses established decades before the

Order was issued. Despite this, we lost in two consecutive local court hearings in

2018, and we are demanded to relocate the farm. The Ministry issuing the Order

has in 2020 confirmed our understanding.

The case contradicts in many ways the legal framework covering our production

permits. The enforceability of the verdict is anyhow seen as practically impossible

as all production permits are valid, and production can continue despite the

verdict.

Seventeen new, similar claims were received during the last two years. The new

claims are either from the same citizens as the original claims or from citizens

connected to the original claimants. All cases have been for trial with a

satisfactory result for us as the cases are dismissed. The base for new claims no

longer exists as the Government Order was changed in 2023 eliminating the

minimum distance.

We are also investigating other options for dealing with this case.

We have no intention of relocating the farm and continue disputing the ruling and

fighting the new claims received. The management and our legal advisors have

initiated several actions for annulment and estimate that we have a strong case

for preventing the ruling being carried out. Based on this, we have chosen not to

make any provisions as we don’t expect to encounter any losses due to this case.

The case is described in detail in Note 2.

Annual Report 2024

We care - Responsibility and sustainability as our guiding principles

This statement has been prepared in accordance with the Financial Statement Act §99a,

§99b and §99d.

Our CSR strategy reflects the emphasis we, Premium Pork International A/S, put on our

operations being responsible and sustainable, and is built upon the pillars of animal welfare,

environment, human and labor rights, local communities, corporate governance and anti-

corruption. Our CSR report is public and can be read in full at our company’s website:

www.premiumporc.com

We put much effort in reducing the environmental impact of manure from our production.

This by applying the manure as natural fertilizer in various ways and, at the same time,

exploring new means to use it. To prevent release of greenhouse gasses, and reduce odors

in general, the manure is stored in sealed lagoons.

Seeking to develop and support the local communities in which we operate, we have formed

sponsorships with local schools and hospitals in Romania. Here, we focus our initiatives on

the pillars of education, health, environment and local values.

We aim for the highest standard of animal welfare within our industry by complying to

established procedures for pig production as well as biosecurity. These procedures are

based on Danish practice, EU standards and further supplemented by the additional

measures required by the Romanian national program for animal welfare.

Our guiding principles of sustainability and responsibility is reflected in our continuous drive

to minimize the impact of our business, and by providing improvements today and for

generations to come.

Management Review

Statement of Data Ethics Policy

We adopted the Policy of Data Ethics in 2022. The policy establishes the overall guidelines

and principles for how data ethics is considered and reflects the Group´s commitment to

manage data responsibly based on principles of honesty, transparency, and accountability.

As a company, we primarily processes data relating to human resources, shareholders

interactions, customer and supplier contact. The group controls that data is collected for

explicit and legitimate purposes and processed legally and fairly, including that data

processing only comprises the data necessary to realize the purpose of the processing.

Any violation of the policy on data ethics or the Group’s internal procedures may be reported

by employees through the groups whistleblowing system. No reports were filed in 2024.

The policy on data ethics is approved by the board of directors annually and revised on an

ongoing basis.

Policy for the under-represented gender

Board of Directors:

The current gender balance in the board is: 1 woman and 4 men. The target regarding

diversity at Board of Directors level was that at least one of the board members should be of

the under-represented gender. We have a target number of min. 25% women on the board by

the end of 2026.

The company's board members are elected by the shareholders at the Annual General

Meeting. Taking the specifics of the industry into account, it is unlikely that the proportion of

the under-represented gender in the board will increase further over the coming years. The

shareholders are aware of the company’s wishes to honor diversity and equal gender

representation and will be aware of this in the future constitutions of the Board, to the extent

the recruitment base supports this possibility.

Other management levels:

The company is required to establish a policy for diversity at other management levels.

Through its internal policies and practices, the group assures a fair selection process, open

towards all genders as well as personal circumstances, and the selection is performed

strictly on criteria related to expertise and reflection of company values.

Sustainability and Corporate Social Responsibility

Annual Report 2024

Anticipated development

Management Review

Pork prices expected to remain attractive for the foreseeable future

ASF continues to challenge the industry in EU as affected countries continue to discover

new cases. But the market balance in the EU is adjusted to the situation with the lack of

export out of EU from the affected countries. Unless ASF spreads to one of the big export

countries we don’t expect ASF to affect the market balance at European level in 2025.

The demand in Europe for pork has decreased in the latest years partially due to the inflation

impacting consumer behavior. But in Romania, the willingness to pay extra for locally

produced pork is strong due to a very low self-supply.

Predicting the supply evolution seems to be on firmer grounds indicating low supplies for the

foreseeable future. The slaughterings in Europe dropped in 2023 to a significantly lower level

than in the past and this reduced level have continued in 2024. The latest herd counts in the

EU indicate that production remains stable, even with a small reduction of the sow herd

indicating that slaughtering will remain low in 2025 as well.

Although the pig price most likely peaked in 2023, we expect only limited price reductions,

and we expect the average price being close to 2 EUR per kg in 2025.

Feed prices declining - but from a very high level

The grain prices continued the downward trend started last year. We have secured a big

portion of the cereals needed until harvest 2025 and even beyond at prices 5-10% below the

harvest 2024 level.

The price level is expected to stay at a profitable level

The price levels for pigs and feed are expected to support profitability also in 2025 as we

expect the pig prices to remain relatively high and the feed prices to be stable, if not slightly

reduced.

Subsidies for animal welfare continue

Subsidies for improving animal welfare continues at least until 2027 according to the current

program. We expect it to continue beyond this as continuation of support to the industry is

an important factor for Romania to reestablish a reasonable degree of national self-supply.

Production temporarily downsized – focus on return to full operation

Although the new ASF outbreak in January 2025 is a major bump, the strategy still is to

resume full production as soon as reasonably possible. Production in 2025, despite the

outbreak in January, is expected to be 4% up from 2024. Production in 2025 will still be

approx. 27% lower than in 2019 (the most recent year without ASF outbreaks).

ASF restrictions will hopefully not impact our production flow

Despite the lack of production flow disruptions caused by farms entering

protection/surveillance zones the last year, future incidents are considered unavoidable. But

hopefully we can avoid disruptions for the rest of 2025.

It’s of high importance for our industry that the ASF situation is being controlled.

Improvement can be seen in the manner that some local authorities manage the clearance

of ASF outbreaks, leading to gradually decreasing periods of animal movement restrictions.

We do expect that ASF will be present in Romania for several years to come, but as both

backyard production and the wild boar population is naturally decreasing over time, further

accelerated by ASF, the risk is expected to gradually decrease within the following years.

Investments focused on optimized production flows

Investments projects are prioritized considering the ASF situation, and the focus on having

all farms back in production. Our priority to protect our farms within the Group remains.

Besides this, a few specific projects, supported by investments grants, are planned for 2025.

The biggest of the projects, upgrading an existing farm, was started in 2024 and will be

finalized in 2025.

We expect loss in 2025 due to the ASF outbreak in January 2025

As stated above, we believe pork prices will remain at a satisfactory level throughout 2025

and the price ratio to continue at the profitable level realized in 2024. But restart of the

temporarily downsized production and new ASF outbreaks have a big negative impact.

Based on our price expectations, and a calm ASF situation, we expect a Total income of EUR

60-70m and the adjusted EBITDA (excluded for fair value adjustment of the herd) to reach

EUR 6-9m. Herd valuation is expected to have a limited impact for 2025.

We remain focused on our cash flow in 2025. The starting point is strong, and the cash base

is expected to remain at a satisfactory level throughout the year supporting restarting the

remaining temporarily reduced production capacities.

Annual Report 2024

Income Statement

Consolidated Financial Statements

Consolidated Income Statement Consolidated Statement of Comprehensive Income

EUR '000

2024 2023

Note

Revenue

70.546 61.631

Grants and other income

6.327 3.993

Value adjustment, biological assets

-4.010 1.396

Total Income

72.863 67.020

Direct costs

-31.763 -28.038

Other external costs

-16.366 -13.584

Gross profit

24.735 25.398

Staff expenses

-9.733 -6.993

Special items

-1.879 0

Depreciation

-7.619 -7.682

Operating profit (EBIT)

5.503 10.722

Financial income

73 101

Financial expenses

-2.730 -3.299

Profit before tax

2.847 7.524

Tax on profit for the year

-482 -1.199

Net profit for the year 2.364 6.325

Distribution of profit for the year:

Group Shareholders 2.364 6.325

Distributed

2.364 6.325

EUR '000

2024 2023

Net profit for the year 2.364 6.325

Exchange adjustments of foreign enterprises

-317 410

Fair value adjustment of hedging instruments

-144 -72

Tax on hedging instruments

23 12

866 2.594

Tax on previos years revaluation adjusted -138 -415

Total comprehensive income

2.654 8.853

Group shareholders 2.654 8.853

2.654 8.853

Items that may be reclassified subsequently

to profit or loss

Items that may not be reclassified

subsequently to profit or loss

Distribution of total comprehensive income

Revaluation of land, buildings, leasehold

improvements and plant and machinery

Annual Report 2024

Balance Sheet

Consolidated Financial Statements

Consolidated Statement of Financial Position

EUR '000

31/12 2024 31/12 2023

Assets

Note

Acquired rights

293 351

Intangible fixed assets in total

293 351

Land and buildings

65.615 67.968

Plant and machinery

11.405 12.807

Operating equipment

814 591

Right of use assets

1.388 1.701

Property, plant and equip. in progress

3.035 915

Property, plant and equipment

82.257 83.982

Non-current investments

56 86

Deferred tax asset

764 0

Other non-current assets

820 86

Biological assets, Breeding herd

5.644 10.513

Biological assets

5.644 10.513

89.014 94.931

Biological assets, Commercial herd

16.268 13.338

Inventories

9.216 8.379

Biological assets and inventories

25.484 21.717

Trade receivables

6.612 6.191

Other receivables

16.014 6.014

Prepayments

586 827

Receivables

23.213 13.032

Assets classified as held for sale

294 315

Cash and cash equivalents

6.357 5.332

55.348 40.396

144.361 135.328

Total non-current assets

Total current assets

Total Assets

EUR '000

31/12 2024 31/12 2023

Equity and Liabilities

Note

Share Capital

710 710

Asset revaluation surplus 11.124 11.253

Cash flow hedging reserve 0 121

Reserve for exchange adjustments

875 1.191

Retained earnings 76.092 72.872

88.801 86.146

Provision for deferred tax

0 372

Credit institutions

9.330 14.893

Lease liabilities

762 467

Subordinated shareholder loan

1.700 2.500

Deferred income

1.601 1.660

Other non-current liabilities

0 3

Long-term liabilities

13.393 19.895

20 28.165 22.195

Trade payables 7.235 3.716

1.609 1.248

Other liabilities

5.159 2.127

Short-term liabilities

42.168 29.286

55.561 49.181

144.361 135.328

Equity

Total liabilities

Short term portion, credit

institutions, leasing and other non-

current

Interest bearing payables to

shareholders

Total Equity and Liabilities

Annual Report 2024

Consolidated Financial Statements

Consolidated Statement of Changes in Equity

EUR '000

Share Capital

Asset

revaluation

surplus

Cash flow

hedging

reserve

Reserve for

exchange

adjustment

Retained

earnings

Total Equity

710 9.706 181 759 65.937 77.293

0 0 0 0 -22 -22

0 0 0 0 6.325 6.325

0 -632 0 0 632 0

0 2.179 -61 432 0 2.550

0 1.547 -61 432 6.935 8.853

710 11.253 121 1.191 72.872 86.146

0 0 0 0 2.364 2.364

0 -856 0 0 856 0

0 727 -121 -316 0 290

0 -129 -121 -316 3.220 2.654

710

11.124 0 875 76.092 88.801

Equity at January 1, 2023

Equity December 31, 2024

Other comprehensive income

Net profit/loss for the year

Other comprehensive income

Equity December 31, 2023

Share based payments

Depreciation of revaluation reserve

Comprehensive income for the year 2023

Comprehensive income for the year 2024

Depreciation of revaluation reserve

Annual Report 2024

Consolidated Cash Flow Statement

Consolidated Financial Statements

EUR '000

2024 2023

Note

Operating profit/loss (EBIT) 5.503 10.722

Adjustment for non-cash items:

7.705 7.725

0 -22

4.010 -1.396

Change in commercial herd

-5.995 -1.501

-837 1.519

Change in receivables

-10.183 -864

Change in trade payables etc. 5.906 1.017

Cash flow from operations before financial items

6.110 17.200

Financial income received

73 101

Financial expenses paid

-2.630 -3.024

Corporation taxes paid

-1.512 -674

Cash flow from operating activities

2.041 13.603

-44 0

0 2

-5.669 -1.309

12 487 176

0 -4

17 21 88

3.923 -3.405

Cash flow from investing activities

-1.281 -4.452

Acquisitions of property, plant

and equipment

Net disposal of assets held for

sale

Acquisition of biological assets

Sale of intangible assets

Sale of property, plant and

equipment

Depreciations

Acquisition of intangible assets

Provisions

Change in inventories

Value adjust., biological assets

Acquisition of investments

EUR '000

2024 2023

Note

Proceeds from borrowings

6.008 212

Repayment of borrowings

-5.742 -10.294

Capital increase 0 0

Cash flow from financing activities

266 -10.083

Change in cash and cash equivalents

1.026 -932

Cash and cash equivalents,

start year

5.332 6.280

Exchange adjustments,

begining cash

-1 -17

Cash and cash equivalents at December 31

6.357 5.332

4.865 6.827

Liquidity available at December 31

11.222 12.159

Un-utilised short term facilities

Annual Report 2024

Notes – Consolidated Financial Statements

Note 1: Summary of significant accounting policies and estimates

Fair value of biological assets

Biological assets are recognized when the Group controls the assets and it is

probable that future economic benefits associated with the asset will flow to the

Group and the cost for fair value of the asset can be measured reliably.

Biological assets are measured at fair value less selling costs.

Value adjustments of biological assets are recognized in profit or loss for the

period of which they relate.

Commercial herd:

Slaughter pigs (Finishers) above 50 kg are valued based on average sales prices

for November-December on the local market less costs for reaching desired sales

weight of approx. 110 kg. Finishers between 25-50 kg are valued as weaners with

additions for added weight.

The fair value of weaners is based on official Danish and German quotes plus a

mark-up to reflect the Romanian market conditions. The Danish and German

quotes are used as there isn’t an official quotation for the Romanian market. The

Group’s experience from historical sales as well as purchases is that prices on

the Romanian market are strongly correlated to the German and Danish

quotations plus a mark-up reflecting the lack of weaners for sale in Romania. The

mark-up is according to the Group’s recent weaner sales contracts.

The valuation of piglets is based on official Danish quotes.

Breeding herd:

Breeding herd (boars, sows and young females) are valued based on official

quotes, based on criteria such as genetics, costs and expected piglets.

Significant accounting estimates and assessments in the group

accounting policies

Revaluation of fair value of property

The Group’s land, buildings are revaluated at fair value. Revaluation of property is

recognized in fair value using either a market-based approach or a replacement cost

approach. Results of the revaluation based on the replacement cost approach were

compared with a revaluation performed using the income approach to check for

impairment indicators of revalued assets, if any.

The revaluation process is based on qualified independent appraisers done according

with International Valuation Standard 300. This standard considers as basis for

evaluation IAS36 and IFRS13. Valuation techniques are the market and replacement

cost approach. The replacement cost approach is only used in cases where there was

no possibility to use the market approach.

The valuation process are reviewed and approved by the Group’s Management and by

the Audit Committee every year. Results for measurement are reviewed and approved

whenever revaluations are performed.

In the subsidiaries, revaluations are performed frequently, minimum every fifth year,

after a rotation principle to ensure the carrying amounts do not differ materially from

that which would be determined using fair value at the end of the reporting period.

This procedure has been used for many years with only limited value adjustments

registered.

The total fair value of land, buildings, plant and machinery amounted to EUR 79.2

million on December 31st, 2024 (EUR 83.0 million on December 31st, 2023).

Annual Report 2024

Notes – Consolidated Financial Statements

Note 2: Contingent liabilities

Relocation of Negreni farm:

(Negreni neighbor cases)

Five citizens from Negreni village filed, in November 2016, a claim against Premium Porc

Negreni SRL with the objective of relocating the Negreni-farm as well as receiving

compensation for moral damages. Their claim is based on Government Order no.

119/2014 stipulating that distances from farm operations to the neighboring houses

should be minimum 1,500m. The Negreni farm, build in 1981, is currently located at few

hundred meters from the nearest houses, all of them being built after the farm.

In first court, in March 2018, the judge ruled that the farm should be relocated in order to

respect the mandatory distance provided by Order 119 and denied the claimants

compensation for moral damages. Premium Porc Negreni SRL appealed the ruling in

June 2018. In second court, in December 2018, the Mehedinti Tribunal rejected our

appeal and upheld the decision from the first court.

The Government’s objective, in 2014 when Order 119 was issued, was to prevent

construction of new farms within less than 1,500 m from private houses for the future.

And vice versa. This understanding of the Government’s Order also is confirmed by all

authorities and is reflected in the fact that all production and functioning permits are

regularly renewed despite the distance being less than 1,500 m.

To further substantiate our understanding of the Order we’ve in 2020 received a response

from the Ministry of Health confirming that our understanding is correct. The Order was

changed in 2023 and the request of 1,500 m distance from nearest houses was removed.

Fighting enforcement procedures is ongoing and court hearings continued in 2024. As

per penalties, several claims against enforcement procedures have been upheld by the

Court and initial penalties annulled. We expected a breakthrough when the Court

decided, that since we as a company stopped the activities in Negreni farm obligations

according to original rulings were met and the enforcement claims were stopped. But

this ruling was appealed, and the decision reversed. However, we are in progress of

making new claims for fighting the enforcement procedures, this time based on

changing in legislation that was the main argument for the initial decision. Subsequently,

we are investigating other options to close the case.

One penalty claim is closed with a limited amount and another claim is dismissed. We

expect to close the rest of the claims in a satisfactory manner.

We have since September 2019 up to now received, eighteen new similar claims from

one of the original claimants and other citizens with connections to him. All the new

cases have been trialed and dismissed making our wins definitive. The risk of receiving

new claims copying the original claim no longer exist considering the changes to the

Government Order eliminating the minimum distances.

The current ruling for relocation doesn’t cancel the production permits. According to our

legal advisors, since the ruling is to “move” the farm and not to close it, it will be difficult

or impossible for the claimants to stop our production in the farm. Relocation of the farm

is impossible to carry out in practice and calculation of the potential worst-case loss is

impossible to assess with a reasonable certainty. The potential worst-case loss caused

by the unlikely outcome that the farm will have to be closed and removed is substantial.

Based on the management and the company’s legal advisor’s opinion that the

relocation ruling never will be carried out, no provisions for relocation of the farm nor

other provisions are stated in the financial statements.

Annual Report 2024

Notes – Consolidated Financial Statements

Notes to the Income Statement

Note

EUR '000

2024 2023

Revenue

Business areas:

Pig production 70.198 60.927

Other 349 656

70.546 61.631

Geography:

Romania 70.546 61.631

Grants and other income

Animal Welfare Payments 4.938 3.993

Other grants 1.388 0

6.327 3.993

Value adjustment, biological assets

Value adjustments pigs -4.010 1.396

-4.010 1.396

Revenue from sale of products is recognized when the Group has transferred control

of products sold to the buyer. Control of the products is transferred at a point in time,

typically on delivery. Revenue is recognized net of VAT, duties and sales discounts.

The Group primarily sells pigs for slaughterhouses. Revenue from the sales of pigs is

recognised when delivery has taken place.

Note EUR '000

2024 2023

Staff expenses

Wages and salaries 9.314 6.265

Pension costs 0 4

Social contribution & other staff expenses 887 746

Wages closed farms (Special Items) -468 0

9.733 7.015

Share based payments for management team 0 -22

9.733 6.993

Remuneration to the Executive Board 608 563

Remuneration to the Board of Directors 101 90

Average number of employees

353 292

Special Items

Compensation for culled herd (revenues) -7.520 0

Value culled herds 5.897 0

Costs related to culling, desinfection and quarantine

3.502 0

1.879 0

Total Income 1.623 0

Direct costs -452 0

Other external costs -2.582 0

Staff expenses -468 0

-1.879 0

Net costs related to ASF outbreaks:

If the special items had been recognized in operating profit before special items, they would

have been included in the following items:

Special Items are costs caused by infection of ASF leading to the herd being culled. We

refer to the detailed decription in the management review.

Annual Report 2024

Notes – Consolidated Financial Statements

Notes to Income Statement and Intangible Assets

Note EUR '000

2024 2023

Financial Income

Interest financial institutions 73 101

73 101

Financial Expenses

Interest bank debt 1.774 1.865

Calculated interest leasing commitments 64 77

Interest shareholders loans 10 138

Other financial expenses 780 944

Exchange rate adjustment 102 274

2.730 3.299

Income Taxes

Current tax 1.253 1.442

Adjustment of deferred tax -770 -243

482 1.199

455 1.204

Tax effect of:

171 451

Non-taxable income and expenses -144 -456

482 1.199

Effective tax rate for the year 17% 16%

Tax on profit for the year is specified as

follows:

Calculated 16% tax on profit for the year before

tax:

Differences in tax rates in Denmark (22%)

compared with Romania

EUR '000

2024 2023

11 Intangible assets

Acquired rights

Cost at January 1 1.505 1.507

Additions for the year 44 0

Disposals for the year -322 -2

Cost at December 31 1.227 1.505

Amortisation at January 1 1.153 1.031

Amortisation for the year 103 147

-322 -25

Amortisation at December 31 934 1.153

Carrying amount at December 31

293 352

The Group has acquired and implemented several software systems used in daily

operations. The value of the acquired rights are based on costs for licenses and

implementations of those software systems.

Reversed depreciation on disposal

Annual Report 2024

Revaluation of fair value of property, plant

and equipment

The Group’s land and buildings are revaluated at

fair value as described in note 1. The revaluation

process is based on qualified independent

appraisers, and valuation techniques are the

market and replacement cost approach. The

replacement cost approach is only used in cases

where there was no possibility to use the market

approach.

Revaluations are in the subsidiaries carried out in

a rotation principle to ensure the carrying

amounts does not differ materially from what

would be determined using fair value at the end

of the reporting period.

A valuation review has been performed in 2023

on the properties owned by Premium Porc SRL

and Consinterfin SRL. The valuation reviews

resulted in a total financial revaluation of EUR

2.6m.

Notes – Consolidated Financial Statements

Notes to Financial Position

12 Tangible assets

EUR '000

Land and

buildings

Plant and

Machinery

Operating

equipme nt

Right of use

assets

Property,

plant and

equipme nt in

progre ss

Cost at January 1, 2023 82.646 43.876 2.906 5.549 836

Additions for the year 320 742 67 102 236

Disposals for the year -34 -4 -309 -1.468 -157

Cost at December 31, 2023 82.931 44.614 2.664 4.183 915

Revaluation at January 1, 2023 15.304 0 0 0 0

Revaluation increases 2.594 0 0 0 0

17.897 0 0 0 0

Amortisation at January 1, 2023 29.024 29.037 2.034 2.947 0

Amortisation for the year 3.842 2.773 318 886 0

Reversed depreciation on disposal -5 -4 -280 -1.351 0

Amortisation at December 31, 2023 32.860 31.807 2.073 2.482 0

67.968 12.807 591 1.701 915

Out of which carrying amount on revaluations

13.396

Out of which land not depreciated 4.402

Right-of-use assets by category 322 948 430

Assets provided as security for debt 67.968 12.807 591

Carrying amount at December 31, 2023

Revaluation at December 31, 2023

Annual Report 2024

Revaluation of fair value of property, plant

and equipment

The Group’s land and buildings are revaluated at

fair value as described in note 1. The revaluation

process is based on qualified independent

appraisers, and valuation techniques are the

market and replacement cost approach. The

replacement cost approach is only used in cases

where there was no possibility to use the market

approach.

Revaluations are in the subsidiaries carried out in

a rotation principle to ensure the carrying

amounts does not differ materially from what

would be determined using fair value at the end

of the reporting period.

A valuation review has been performed in 2024

on the properties owned by Premium Porc

Negreni SRL. The valuation reviews resulted in a

total financial revaluation of EUR 0.9m.

The Group had end of 2024 contractual

obligations related to Property, plant and

equipment in progress of EUR 1.9m (2023: EUR

0.0m).

Notes – Consolidated Financial Statements

Notes to Financial Position

Tangible assets continued

EUR '000

Land and

buildings

Plant and

Machinery

Operating

equipme nt

Right of use

assets

Property,

plant and

equipme nt

in progress

Cost at January 1, 2024 82.931 44.614 2.664 4.183 915

Additions for the year 975 1.581 550 444 3.592

Disposals for the year -6 -2.230 -1.408 -1.718 -1.472

Cost at December 31, 2024 83.900 43.964 1.805 2.909 3.035

Revaluation at January 1, 2024 17.897 0 0 0 0

Revaluation increases 866 0 0 0 0

18.762 0 0 0 0

Amortisation at January 1, 2024 32.860 31.807 2.073 2.482 0

Amortisation for the year 4.186 2.972 289 410 0

Reversed depreciation on disposal 0 -2.220 -1.371 -1.371 0

Amortisation at December 31, 2024 37.046 32.559 992 1.521 0

65.615 11.405 814 1.388 3.035

Out of which carrying amount on revaluations 13.241

Out of which land not depreciated 4.813

Right-of-use assets by category 214 553 621

Assets provided as security for debt 65.615 11.405 814

If Land and buildings were measured using cost model, the carrying amounts would be:

Net carrying amount Land and Buildings without revaluations, 2023 54.572

Net carrying amount Land and Buildings without revaluations, 2024 52.375

Revaluation at December 31, 2024

Carrying amount at December 31, 2024

Annual Report 2024

Notes to Financial Position

Gain on changes in fair value comprises changes as a consequence of

biological growth and price changes. Disposals from sales and transfer

amounts are calculated using the fair value per unit from previous period.

Transfers between groups’ covers pigs transferred to own breeding as young

females.

Reference is made to note 1 for further details of fair value measurement of

biological assets.

All biological assets are measured at fair value. All of these fair values are

placed at level 3 in the fair value hierarchy as significant estimates are applied

– please refer to note 1. The Groups financial department is responsible for

performing the valuation of fair value measurements including level 3 fair

values of biological assets. Valuation model includes market inputs from

official prices and actual own sales prices on local market. The valuation

process and results for measurement are reviewed and approved by Group

Management and the Audit Committee at least once every year.

Notes – Consolidated Financial Statements

Biological assets

EUR '000

Commercial

herd

Breeding herd Total herd

Commercial and breeding herd

Carrying amount at January 1, 2023

10.089 7.461 17.550

Movements 2023:

Gains/losses fair value changes

1.748 -352 1.396

Additions from production 56.665 2.551 59.216

Additions from purchases 0 1.576 1.576

Disposals from sales -53.756 -2.130 -55.887

Transfers between groups -1.408 1.408 0

13.338 10.513 23.851

Year-end stock (heads) 145.262 22.461 167.723

Finishers, weaners & sows sold (heads)

335.580 6.867 342.447

Biological assets provided as security

13.338 10.513 23.851

Movements 2024:

Gains/losses fair value changes

-3.065 -945 -4.010

Additions from production 66.801 2.252 69.053

Additions from purchases 0 1.175 1.175

Disposals from sales -57.909 -4.351 -62.259

Transfers between groups -916 916 0

Provision for herd culled in 2025

-1.981 -3.916 -5.897

16.268 5.644 21.913

Year-end stock (heads) 165.769 12.202 177.971

Finishers, weaners & sows sold (heads)

326.322 6.266 332.588

Biological assets provided as security

16.268 5.644 21.913

Carrying amount December 31, 2023

Carrying amount December 31, 2024

Annual Report 2024

Notes – Consolidated Financial Statements

Notes to Financial Position

Note EUR '000

2024 2023

Non-current investments

Deposits / other financial assets 56 86

Cost at December 31 56 86

Inventories

Rawmaterials for feed 6.304 5.413

Other Consumables 2.062 2.139

Finished goods (feed a.o.) 850 827

Total inventories 9.216 8.379

Cost of sales recognized in profit or loss (feed) 31.763 28.038

Inventories provided as security 9.216 8.379

No write-down has been made on inventories.

Receiveables

Trade receiveables 7.140 6.685

Bad debt provision -528 -494

Trade receiveables, net 6.612 6.191

Receiveable from public grants 4.960 3.943

Receiveable compensation culled herd 7.520 0

Other receiveables 3.539 2.215

Bad debt provision -4 -144

Other receiveables, net 16.014 6.014

Write down, beginning of year 638 720

Exchange adjustments 0 -4

Additions for the year 211 161

Disposals for the year -317 -239

Write-down at December 31 532 638

Note EUR '000

2024 2023

17 Assets held for sale

Land and buildings 294 315

Cost at December 31 294 315

18 Share Capital

The share capital comprises the following share classes:

A-shares:

Number beginning 710.000 710.000

Number at December 31 710.000 710.000

Each share has a value of EUR 1. No shares carry any special rights.

19 Provision for deferred taxes

372 -169

-770 -243

Adjustment on equity -366 784

Provision for deferred tax December 31 -764 372

Deferred tax relates to tangible assets.

Provision at begining of year

Adjustment for the year

recognized in profit or loss

Assets held for sale is related to a agricultural land development project spread out over

Galati County in Romania. The land has never been part of the Group's operation and a

sale will not impact future earnings neither the future development of the Group.

Annual Report 2024

Notes – Consolidated Financial Statements

Loans with fixed interest

Loans with variable interest

Notes to Financial Position

20 Interest bearing debt Cash flow from financing activities

EUR '000

Payable after

5 years

Payable

between 2

and 5 years

Payable within

1 year

Total

EUR '000

1/1 2023 Cash flows

Foreign

exchange

movement

Fair value

changes

31/12

2023

Debt at December 31, 2023

Credit institutions, non-current: 0 14.893 5.416 20.309

Credit institutions, non-current:

23.963 -3.528 -126 0 20.309

Leasing debt: 0 467 638 1.105 Leasing debt: 1.980 -875 0 0 1.105

Other non-current debt: 0 3 9 12

Other non-current debt:

68 -56 0 0 12

Subordinated loan to shareholder:

0 2.500 0 2.500 Subordinated loans 2.500 0 0 0 2.500

Other payables to shareholder:

0 0 1.248 1.248 Other payables to shareholder 1.038 209 0 0 1.248

Credit institutions, current: 0 0 16.131 16.131 Credit institutions, current: 21.839 -5.702 -6 0 16.131

0 17.863 23.442 41.305 51.388 -9.951 -132 0 41.305

Debt at December 31, 2024

1/1 2024 Cash flows

Foreign

exchange

movement

Fair value

changes

31/12

2024

Credit institutions, non-current: 0 9.330 5.563 14.893

Credit institutions, non-current:

20.309 -5.412 -4 0 14.893

Leasing debt: 0 762 427 1.189 Leasing debt: 1.105 84 0 0 1.189

Other non-current debt: 0 0 3 3

Other non-current debt:

12 -9 0 0 3

Subordinated loan to shareholder:

100 1.600 400 2.100 Subordinated loans 2.500 -400 0 0 2.100

Other payables to shareholder:

0 0 1.209 1.209 Other payables to shareholder 1.248 -38 0 0 1.209

Credit institutions, current: 0 0 22.172 22.172 Credit institutions, current: 16.131 6.041 -1 0 22.172

100 11.692 29.774 41.566

41.305 266 -5 0 41.566

Non-cash changes

Annual Report 2024

The Group does not engage in speculative currency positions. Introduction of the EUR as functional

currency of the consolidated financial statements has contributed to reducing the overall impact of

exchange rates.

Exchange rate adjustments of investments in foreign subsidiaries being independent entities are

recognized in other comprehensive income. Exchange rate risks related to investments are normally

not hedged, as the company’s management is of the opinion that a current foreign currency hedging

would not be the optimal solution with a view to the overall risk and costs.

The Group is exposed to interest rate risks, as loans are primarily with variable interests except for the

smaller part with fixed interests described above. A reasonable possible change in interest rates at

31.12.2024 would not have any material effect. An increase of 1% of the interest will, on an isolated

basis, affect profit for the year before tax by approximately EUR 0.4 million (2023: approx. EUR 0.3

million).

The Group is highly exposed to global and EU development in sales prices of pork as well as raw

materials for feed (grain and protein). The most significant effect on the Group's earnings is

attributable to changes in the price of pig meat and price changes relating to pig feed, which makes

up 2/3 of the pig production costs. The Group observes these developments closely.

A change of the pig meat price of 10% will, on an isolated basis, affect profit for the year before tax by

approximately EUR 5.7 million (2023: approx. EUR 5.6 million). A 10% change in the feed price will, on

an isolated basis, affect profit for the year before tax by approximately EUR 3.2 million (2023: approx.

EUR 2.8 million).

Notes – Consolidated Financial Statements

Notes to Consolidated Financial Statements

Note EUR '000

2024 2023

Deferred Income

Investments subsidies beginning 1.660 1.981

147 0

Amortization of investments subsidies -255 -321

1.553

1.660

Other liabilities

Employee related payables 412 492

Other payables 4.747 1.636

5.159

2.127

Correction investment subsidies received

prior years

Deferred income primarily relates to grants for the construction of feedmills and

biosecurity barriers on farms in Romania. Grants are recognised as income

concurrently with the underlying fixed assets being depreciated.

Split of total outstanding interest bearing debt

EUR '000 2023

2024

Interest

binding

period in

months

Avg. effe ctive

interst

Loans with fixed interest

EUR

9.745 3.309 12-36 6%

RON

12 3 up to 24 0%

9.757

3.312

Loans with variable interest

EUR

30.441 34.380 1-6 4-5%

RON

1.105 3.870 1-6 6-7%

DKK

3 4 1 5%

31.549

38.254

Note 23: Financial risks

Market risk

The Group's credit facilities are floating-rate credits, which exposes the Group to

interest rate fluctuations. According to Group policy, all financing of working capital

and investments in fixed assets are made on floating-rate terms. An old interest

hedging of the debt concluded via the same banks providing the underlying long-term

facility expired during 2024 and is no longer in place. 8 % of the Group’s debt is with

fixed interest rate.

Activities abroad, earnings, cash flows and equity are not materially affected by

currency risks, as the foreign activities are predominantly transacting in their

functional currency (RON). Similarly, the external financing is denominated in EUR,

which is the functional currency of the parent entity and the presentation currency for

the Group, except for financing locally, which is in the functional currency of the

subsidiary. Hence, there is no currency risks related to external financing either.

Consequently, material currency risks for the Group are limited to translation risks

related to foreign subsidiaries.

Annual Report 2024

Other Financial Risks

Note 23: Financial risks - Continued

Liquidity risk

The Group ensures adequate cash resources by entering into framework agreements in

respect of current overdraft facilities. Existing agreements subject to time limitation are

irrevocable on the part of the banks prior to maturity unless there is a breach of the terms of

the loans according to the loan agreements.

Maturity analysis for debt is stated in Note 20, to which reference is made. The maturity

analysis is disclosed according to category and class broken down on maturity period.

Capital management

The objective of the Group's capital management is to ensure the Group's ability to continue

as a going concern in order to provide return on the shareholders' investments and establish

and maintain an optimal capital structure for the purpose of reducing the costs of borrowed

capital and maintain a basis for continued growth in the Group.

The Group's capital management is moreover partly controlled by loan agreements which

include specific requirements to the financial performance of the Group.

Total capital comprises equity and subordinate loan capital from the Parent company; as

shown in the consolidated balance sheet

Notes – Consolidated Financial Statements

Credit risk

The Group is exposed to credit risks on receivables. The Group positively wants to minimize

its credit risks, which mainly relates to sales transactions. Credit insurance is taken out in

advance on more than 95% of the normal sales of slaughter pigs but a few special cases and

weaner sales reduces the total coverage. Credit insurance covers approx. 87% of the total

receivable end of 2024 (2023: 86%). Outstanding receivables are followed-up upon on a

current basis in accordance with Group procedures.

The expected credit losses on trade receivables are estimated by reference to past default

experience of the debtor and an analysis of the debtor’s current financial position, adjusted

for factors that are specific to the debtors and an assessment of both the current as well as

the forecast direction of conditions at the reporting date. The Group writes off a trade

receivable when there is information indicating that the debtor is in severe financial difficulty

and there is no realistic prospect of recovery, e.g. when the debtor has been placed under

liquidation or has entered into bankruptcy proceedings, or when the trade receivables are

over two years past due, whichever occurs earlier.

There has been no change in the estimation techniques or significant assumptions made

during the current reporting period.

EUR '000

Due above

5 years

Due Between

2 and 5 years

Due within

1 year

Total Carrying

amount

Receivables at December 31, 2023

Trade receivables 0 0 6.191 6.191

Other receivables 0 0 6.014 6.014

Prepayments 0 460 367 827

0 460 12.572

13.032

Receivables at December 31, 2024

Trade receivables 0 0 6.612 6.612

Other receivables 0 148 15.867 16.014

Prepayments 0 278 308 586

0 425 22.788

23.213

Annual Report 2024

Notes to Consolidated Financial Statements

Note 26: Incentive program for group management

The entity’s parent DCH International A/S has granted warrants to members of the entity’s

management, that will allow them to purchase a number of shares in DCH International A/S at

a price agreed in advance.

A total of 2,904,000 warrants have been granted, of which 2,341,833 warrants are allotted on

December 31, 2024. All of the remaining 562,167 warrants is cancelled due to the participants

termination of employment.

The participants may exercise their warrants by purchasing shares during a four-week period

following the approval of the parent entity’s annual report in the years 2023 to 2027, after

which the warrants will lapse without any further notice. The agreed exercise price increases

from 4.00 DKK per share in 2024 to 4.63 per share in 2027.

The fair value of each option is calculated using an option pricing model taking into account

the exercise price of the option, an estimate of the current price of the underlying shares, the

life of the option and the risk-free interest rate for the life of the option. As the Group is

unlisted, and no market information for comparable listed entities are currently available, the

current price of the underlying shares is determined based on the equity per share according

to the annual report for 2019. Management believe that this is a reasonable approximation of

the current market price for the Group’s shares for the purpose of the measurement of the

warrants, due to the current market situation and the outbreak of ASF in Romania, and the fact

that all tangible assets and biological assets of the group are measured at fair value. In

determining the life of the option for the purpose of the measurement, it is assumed that the

employees will exercise the option as soon as possible.

The fair value of the warrants granted has been determined to be 0.47 DKK (0.06 EUR) per

warrant. The most significant inputs used in the measurement model are the following:

Note 27: Post balance sheets events

There have been no significant post balance sheets events except for the ASF outbreak in

January 2025 described in the management review.

Notes – Consolidated Financial Statements

Volatility 25%

Exercise price (in the parent) 4.63 DKK

Risk free interest rate (pro anno) 0.0%

Life of the warrants 84 months

24 Related parties and ownership

Controlling Interest Base for influence

DCH International A/S, Dannevirkevej 6, 7000 Fredericia

Parent Company

Other related parties

Lars V. Drescher CEO

Morten Beider CFO

Torben Svejgaard Chairman of the Board of Directors

Carsten Lind Pedersen Member of the Board of Directors

Ole Sloth Nielsen Member of the Board of Directors

Jytte Rosenmaj Member of the Board of Directors

Bo Holse Member of the Board of Directors

Transactions EUR '000

2024 2023

Outstanding amount at Year-end: 2.100 2.500

Interest for the year amounts to: 126 125

Outstanding amount at Year-end: 1.209 1.248

Financial expenses for the year amounts to: -116 13

Remuneration of the Executive Board and the Board of Directors is specified in note 6.

25 Fees paid to auditors appointed by the General Assembly

Fees for statutory audits 83 96

Other Services 88 75

171

Audit fee are recognized as administrative costs

Intercompany transactions have been eliminated in accordance with the accounting

policies. All transactions have taken place on arm's length basis.

Other interest bearing debt and intercompany

amounts from the Parent Company:

The Group has obtained a subordinate loan from the

Parent Company:

DCH International A/S's shareholders are legal and natural persons, and no individual

shareholder exercises control of the Group's activities.

Annual Report 2024

Note 28: Accounting Policies

Classification

The consolidated financial statements have been prepared in

accordance with International Financial Reporting Standards (IFRS)

as adopted by the EU and additional Danish disclosure

requirements for annual reports.

Recognition and measurement

Assets are recognized in the balance sheet when it is probable as a

result of a prior event that future economic benefits will flow to the

Group, and the value of the assets can be measured reliably.

Liabilities are recognized in the balance sheet when the Group has a

legal or constructive obligation as a result of a prior event, and it is

probable that future economic benefits will flow out of the Group,

and the value of the liabilities can be measured reliably.

On initial recognition, assets and liabilities are measured at cost.

Measurement subsequent to initial recognition is affected as

described below for each financial statement item.

Anticipated risks and losses that arise before the time of

presentation of the annual report and that confirm or invalidate

affairs and conditions existing at the balance sheet date are

considered at recognition and measurement.

Income is recognized in the income statement when earned,

whereas costs are recognized by the amounts attributable to this

financial year.

Consolidated financial statement

The annual report include Premium Pork International A/S (Parent)

and the enterprises (group enterprises) that are controlled by the

Parent, see group chart in note 36. Control is achieved by the

Parent, either directly or indirectly, holding more than 50% of the

voting rights or in any other way possibly or actually exercising

controlling influence.

Basis of consolidation

The annual report is prepared on the basis of the financial

statements of Premium Pork International A/S and its subsidiaries.

The annual report is prepared by combining uniform items. On

consolidation, intra-group income and expenses, intra-group

accounts and dividends as well as profits and losses on

transactions between the consolidated enterprises are eliminated.

The financial statements used for consolidation have been

prepared applying the Group’s accounting policies.

Subsidiaries’ financial statement items are recognized in full in the

annual report.

Investments in subsidiaries are offset at the pro rata share of such

subsidiaries’ net assets at the takeover date, with net assets having

been calculated at fair value.

Business Combinations

Newly acquired or newly established enterprises are recognized in

the annual report from the time of acquiring or establishing such

enterprises. Divested or wound-up enterprises are recognized in the

consolidated income statement up to the time of their divestment

or winding-up.

The purchase method is applied at the acquisition of new

enterprises, under which identifiable assets and liabilities of these

enterprises are measured at fair value at the acquisition date. On

acquisition of enterprises, provisions are made for costs relating to

decided and published restructurings in the acquired enterprise.

Allowance is made for the tax effect of restatements.

Identifiable intangible assets are recognized separately from

goodwill if they are separable or arise from contractual or other

legal rights.

Any remaining positive differences between cost and the fair value

of assets, liabilities and contingent liabilities acquired are

recognized in intangible assets in the balance sheet as goodwill.

Goodwill is not amortized but is tested for impairment on an annual

basis. Enterprises acquired are recognized in the consolidated

financial statements as from the date of obtaining control, whereas

enterprises sold are recognized up until the date of surrender of

control. Intra-group acquisitions of subsidiaries are made under the

pooling of interest's method.

If any remaining difference between cost and the fair value of

assets, liabilities and contingent liabilities acquired are negative, the

amount is recognized immediately in profit or loss as a bargain

purchase gain.

Foreign currency translation

The items recognized in the financial statements of each of the

group enterprises are measured at the functional currency used in

the primary economic environment in which the individual

enterprise operates. The functional currencies of the group

enterprises are the following: Romanian Lei (RON) for the Romanian

subsidiary and EUR for the parent company in Denmark.

The consolidated financial statements are presented in EUR, which

are the functional currency of the parent company and the

presentation currency of the Group. On initial recognition,

transactions in foreign currencies are translated at the exchange

rates at the date of transaction. Exchange differences arising

between the transaction date rates and the rates at the date of

payment are recognized in the income statement as financial

income and expenses.

Receivables, payables and other monetary items denominated in

foreign currencies are translated at the exchange rates at the

balance sheet date. Any differences between the exchange rates at

the balance sheet date and the exchange rates at the date at which

the receivable or the payable arose or was recognized in the most

recent financial statements are recognized in the income statement

as financial income and expenses.

On consolidation, exchange differences arising from the translation

of any net investment in foreign entities and of borrowings and

other financial instruments designated as hedges of such

investments are recognized in other comprehensive income. When

a foreign operation is sold or any borrowings forming part of the net

investment are repaid, the associated exchange differences are

reclassified to profit or loss as part of the gain or loss on sale.

Balance sheet items including goodwill relating to consolidated

enterprises that do not have EURO as their functional currency are

translated into EUR based on the exchange rates at the balance

sheet date, whereas the income statements of these enterprises are

translated at average rates of exchange. Exchange adjustments

arising on the translation of the opening equity at the exchange

rates at the balance sheet date and net profit/loss for the year at

the exchange rates at the balance sheet are recognized in other

comprehensive income over equity under a separate reserve for

exchange adjustments.

The Group used the following exchange rates for the translation

into EUR on 31 December 2024:

RON: Income statement 2024: 1 EUR = 4.976 RON

(2023: 1 EUR = 4.951 RON)

DKK: Income statement 2024: 1 EUR = 7.4600 DKK

(2023: 1 EUR = 7.4502 DKK)

Derivative financial instruments

On initial recognition in the balance sheet, derivative financial

instruments are measured at cost and subsequently at fair value.

Derivative financial instruments are recognized under other

receivables or other payables, respectively.

Changes in the fair value of derivative financial instruments

classified as and complying with the requirements for hedging the

fair value of a recognized asset or a recognized liability are

recorded in the income statement together with changes in the

value of the hedged asset or the hedged liability.

Accounting Policies

Notes – Consolidated Financial Statements

Annual Report 2024

Changes in the fair value of derivative financial instruments

classified as and complying with the requirements for hedging

future transactions are recognized in other comprehensive income.

When the hedged transactions are realized, the accumulated

changes are recognized as part of cost of the relevant financial

statement items.

Changes in the fair value of derivative financial instruments applied

for hedging net investments in independent foreign subsidiaries are

classified in other comprehensive income.

Income statement

Revenue

Revenue from sale of products is recognized when the Group has

transferred control of products sold to the buyer and it is probable

that the Group will collect the consideration to which it is entitled

for transferring the products. Control of the products is transferred

at a point in time, typically on delivery. Revenue is recognized net of

VAT, duties and sales discounts and is measured at fair value of the

determined consideration.

Investment grants are taken to income as actual payment is made

when the conditions of payment of grants have been approved by

the authorities.

Fair value adjustment biological assets

Fair value adjustments of biological assets include the adjustments

of the company’s biological assets for the financial year measured

at fair value.

Costs of feed, energy and other production costs

Costs of feed, energy and other production costs include the

consumption of raw materials and consumables used to achieve

net revenue.

Other external expenses

Other external expenses comprise expenses for distribution, sale,

administration, premises, bad debts, etc.

Staff costs

Staff costs comprise salaries and wages, social

security costs, pension contributions, etc. for the Company’s staff.

Amortization, depreciation and impairment losses

Amortization, depreciation and impairment losses relating to

intangible and tangible assets comprise amortization, depreciation

and impairment losses for the financial year, calculated on the

basis of the residual values and useful lives of the individual assets

and impairment testing as well as gains and losses from the sale of

intangible assets as well as property, plant and equipment.

Financial income and expenses

These items comprise interest income and interest expenses, the

interest portion of finance lease payments, payables and

transactions in foreign currencies, mortgage amortization

premium/allowance on mortgage debt, etc. as well as tax surcharge

and repayment under the Danish Tax Prepayment Scheme.

Tax

Tax for the year, which consists of current tax for the year and

changes in deferred tax, is recognized in the income statement by

the portion attributable to the profit/loss for the year and

recognized directly in equity by the portion attributable to entries

directly in equity. Current Danish income tax is allocated among the

jointly taxed entities proportionally to their taxable income (full

allocation with a refund concerning tax losses).

Balance Sheet

Intangible assets

Acquired intellectual property is amortized over the term of the

agreement, but over no more than 5 years. Intellectual property

rights etc. are written down to the lower of recoverable amount and

carrying amount.

Property, plant and equipment

Other fixtures and fittings, tools and equipment and property plant

and equipment in progress are measured at cost less accumulated

depreciation. Cost comprises the cost of acquisition and expenses

directly related to the acquisition and costs for set-up. In case of

assets of own construction, cost comprises directly attributable

costs of labor, materials, components and sub-suppliers.

The categories land and buildings are measured at fair value less

accumulated depreciation on buildings and impairment losses

recognized at the date of revaluation. Valuations are performed

with sufficient frequency to ensure that the carrying amount of a

revalued asset does not differ materially from its fair value.

A revaluation surplus is recorded in other comprehensive income

and credited to the asset revaluation surplus in equity. However, to

the extent that it reverses a revaluation deficit of the same asset

previously recognized in profit or loss, the increase is recognized in

profit and loss. A revaluation deficit is recognized in the income

statement, except to the extent that it offsets an existing surplus on

the same asset recognized in the asset revaluation reserve.

An annual transfer from the asset revaluation reserve to retained

earnings is made for the difference between depreciation based on

the revalued carrying amount of the asset and depreciation based

on the asset's original cost. Upon disposal, any revaluation reserve

relating to the particular asset being sold is recognized in retained

earnings without passing the income statement. Financial expenses

directly attributable to purchases, construction or production of a

qualifying asset are included as part of the cost of the asset. A

qualifying asset is an asset that necessarily takes a substantial

period of time to get ready for its intended use or sale. The Group

uses the local, effective rate of interest on credit for construction

and overdraft facilities for the calculation of expenses for

capitalization.

Depreciation of a non-current asset is commenced when it is put

into use. Depreciation based on cost reduced by any residual value

is calculated on a straight-line basis over the expected useful lives

of the assets, which are:

Production buildings 25-40 years

Production plant and machinery 7-15 years

Operating fixtures, tools and vehicles 3-7 years

Land is not depreciated

The carrying amount of property, plant and equipment is reviewed

on an annual basis to determine whether there is any indication of

impairment other than that expressed by fair-value or depreciation.

If so, an impairment test is carried out to determine whether the

recoverable amount is lower than the carrying amount and the

asset is written down to its lower recoverable amount.

Biological assets

Agricultural activity is defined as an activity in which biological

transformation of biological assets for sale into agricultural

produce or another biological asset takes place. Agricultural

produce is defined as a harvested product of the Group’s biological

assets, and a biological asset is defined as living animals or crops.

The Group has assessed that its biological assets consists of

breeding herds of gilts, sows and boars, commercial heard of

slaughter pigs and unharvested crops.

On initial recognition and at subsequent reporting dates, biological

assets are measured at fair value less estimated costs to sell

unless fair value cannot be reliably measured on initial recognition.

Accounting Policies

Notes – Consolidated Financial Statements

Annual Report 2024

Gains or losses on initial recognition of a biological asset measured

at fair value less estimated costs to sell, and subsequent changes

in the fair value less estimated costs to sell relating to the

biological asset, are recognized in the income statement in the item

“Gains/losses on changes in the fair value of biological assets” in

the period in which the gain or loss arises.

Biological assets are recognized as current or non-current

biological assets depending on the production cycle of the

biological asset concerned. Generally, biological assets relating to

slaughter pigs and cropping are recognized as current assets.

Breeding herds of gilts, sows and boars are recognized as non-

current assets.

Investments in subsidiaries

Investments in subsidiaries are recognized and measured under the

equity method. This means that investments are measured at the

pro rata share of the enterprises’ equity value plus or less

unamortized positive, or negative goodwill and plus or minus

unrealized intra-group profits and losses.

The Parent’s share of the enterprises' profits or losses after

elimination of unrealized intra-group profits and losses and minus

or plus amortization of positive or negative goodwill is recognized

in the income statement and the net revaluation reserve under the

equity.

Upon distribution of profit or loss, net revaluation of subsidiaries is

transferred from the reserve for net revaluation to retained earnings

under the equity method.

The purchase method is applied in the acquisition of investments in

subsidiaries; see above description under annual report.

Inventories

Inventories are measured at the lower of cost under the FIFO

method and net realizable value. The net realizable value of

inventories is calculated at the amount expected to be generated by

sale in the process of normal operation with deduction of costs to

sell and costs of completion. The net realizable value is determined

allowing for marketability, obsolescence and development in

expected sales sum.

The cost of goods for resale, raw materials and consumables

equals landed cost.

The cost of finished goods and work in progress comprises the

cost of raw materials, consumables and direct labor as well as

directly attributable labor and production costs. These costs also

comprise maintenance and depreciation of machinery, factory

buildings and equipment used in the manufacturing process as well

as costs of production management.

Agricultural produce is initially recognized at fair value at the point

of harvest less estimated costs to sell, and subsequently in

inventories up until the point when it is sold to a third party or is

used internally as feed. The fair value of agricultural produce at the

point of harvest is measured on the basis of the market prices on

the markets on which the agricultural produce is expected to be

sold or used as feed.

Receivables

Receivables are measured at amortized cost, usually equaling

nominal value less write-downs for bad debts.

Prepayments

Prepayments comprise incurred costs relating to subsequent

financial years. Prepayments are measured at cost.

Lease commitments

Lease payments, not recognized under IFRS 16, are recognized on a

straight-line basis in the profit and loss account over the term of the

lease.

Other financial liabilities

Other financial liabilities are measured at amortized cost, which

usually corresponds to nominal value.

Deferred income

Deferred income comprises income received for recognition in

subsequent financial years. Deferred income is measured at cost.

Cash

Cash comprises bank deposits.

Deferred tax

Deferred tax is recognized on all temporary differences between the

carrying amount and tax-based value of assets and liabilities, for

which the tax-based value of assets is calculated based on the

planned use of each asset.

Deferred tax assets, including the tax base of tax loss

carryforwards, are recognized in the balance sheet at their

estimated realizable value, either as a set-off against deferred tax

liabilities or as net tax assets.

Income tax receivable or payable

Current tax payable or receivable is recognized in the balance sheet,

stated as tax calculated on this year's taxable income, adjusted for

prepaid tax.

Cash flow statement

The consolidated cash flow statement and the parent cash flow

statement are presented using the indirect method and shows cash

flows from operating, investing and financing activities as well as

the cash and cash equivalents at the beginning and end of the

financial year.

Cash flows from the acquisition and divestment of enterprises are

shown separately under cash flows from investing activities.

Cash flows from operating activities are calculated as operating

profit/loss adjusted for non-cash operating items, working capital

changes, financial income and expenses and income taxes paid.

Cash flows from investing activities comprise payments made in

connection with the acquisition and divestment of enterprises,

activities and fixed asset investments as well as acquisition,

development, improvement and sale, etc. of intangible assets and

property, plant and equipment.

Cash flows from financing activities comprise changes in the size

or composition of the Parent’s share capital and related costs as

well as the raising of loans, inception of finance leases, instalments

on interest-bearing debt, purchase of treasury shares, and payment

of dividend.

Cash and cash equivalents comprise cash.

Accounting Policies

Notes – Consolidated Financial Statements

Annual Report 2024

Parent Income Statement Parent Statement of Comprehensive Income

Parent Financial Statements

2024 2023

Note

Revenue

1.696 1.416

Other external costs -797 -566

Gross profit

899 850

Staff Expenses

-1.102 -881

Depreciation 0 0

Operating profit (EBIT)

-203 -31

2.410 6.347

Financial income

342 227

Financial expenses

-198 -230

Profit before tax

2.351 6.313

Tax on profit for the year

13 12

Net profit for the year

2.364 6.325

Distribution of profit for the year:

Group Shareholders

2.364 6.325

Distributed 2.364 6.325

EUR '000

Income from investments in

subsidiaries

EUR '000

2024 2023

Note

Net profit for the year 2.364 6.325

Exchange adjustments of foreign enterprises -316 436

Hedge accounting -121 -61

Value adjustments in subsidiaries 727 2.179

Total comprehensive income 2.654 8.879

Items that may be reclassified

subsequently to profit or loss

Items that may not be reclassified

subsequently to profit or loss

Annual Report 2024

Parent Statement of Financial Position

Parent Financial Statements

EUR '000

31/12 2024 31/12 2023

Assets Note

Investments in subsidiaries

89.324 86.623

Loan to subsidiaries

2.100 2.500

Other non-current investments

4 7

Fixed asset investments

91.428 89.131

Non-current assets

91.428 89.131

Receiveables group companies

575 657

Other receiveables

106 91

Deferred tax assets

76 63

Receiveables

757 810

Cash and cash equivalents

162 176

Current assets

918 987

Total Assets 92.346 90.117

EUR '000

31/12 2024 31/12 2023

Equity and liabilities

Note

Share capital

710 710

41.312 38.297

Retained earnings 46.778

47.140

Equity

88.801 86.146

Subordinate loan capital

2.100 2.500

Long-term liabilities

2.100 2.500

Credit institutions

4 3

Trade payables

73 84

Interest bearing payables to group companies

1.209 1.248

Other payables

159 136

Short-term liabilities

1.445 1.471

Total liabilities

3.545 3.971

Total Equity and Liabilities 92.346 90.117

Reserve for net revaluation

according to the equity method

Annual Report 2024

Parent Statement of Changes in Equity Parent Cash Flow Statement

Parent Financial Statements

EUR '000

2024 2023

Operating profit/loss (EBIT) -203 -31

Adjustment for non-cash items:

Provisions

0 -22

Change in receivables

67 -228

Change in trade and other payables

12 -20

Change in interest bearing payables group

-39 210

Cash flow from operations before financial items -164 -92

Financial income received

342 227

Financial expenses paid

-198 -230

Corporation taxes paid

0 0

Cash flow from operating activities

-20 -95

Issuence of loans to subsidiaries

400 0

Cash flow from investing activities

403 0

Repayment of borrowings -399 -17

Capital increase 0 0

Cash flow from financing activities

-399 -17

Change in cash and cash equivalents

-15 -112

Cash and cash equivalents, start year 176 287

Cash and cash equivalents at December 31 162 176

Un-utilised short term facilities 70 71

Liquidity available at December 31 231 247

EUR '000

Share Capital

Reserve for

ne t revaluation

according to

the e quity

method

Retaine d

earnings

Total Equity

710 29.836 46.748 77.293

0 -31 31 0

710 29.805 46.778 77.293

0 0 0 0

0 0 -22

-22

Net profit/loss for the year

0 6.347 -21

6.325

Other comprehensive income

0 2.553 -3

2.550

710 38.705 46.732 86.146

0 0 0 0

Net profit/loss for the year 0 2.410 -46 2.364

Other comprehensive income 0 291 0 291

710 41.405 46.685 88.801

Equity at January 1, 2023

Equity at December 31, 2023

Equity at December 31, 2024

Share based payments

Increase share capital

Reclassified

Reclassified equity at January 1, 2023

Annual Report 2024

Notes – Parent

Notes to Parent Financial Statements

Note EUR '000

2024 2023

Revenue

Management services

950 899

Secondment

441 242

Other

305 276

1.696 1.416

Fees paid to auditors appointed by the General Assembly

Fees for statutory audits

48 34

Other Services

0 0

48 34

Audit fee are recognized as administrative costs

Staff expenses

Wages and salaries 1.102 903

Share based payments 0 -22

1.102 881

Average number of employees

6 4

Reference is made to note 6 for infomation about remuneration to the Executive

Board and Board of Directors and to note 26 for incentive program for the group

management team.

Note EUR '000

2024 2023

Income from investments in subsidiaries

Premium Porc SRL -435 1.870

Consinterfin SRL, owned partly by Premium Porc Feed SRL

448 1.797

Agro Investments Moldova SRL 688 45

Premium Porc Negreni SRL 81 -160

Premium Porc Feed SRL -85 324

Degaro SRL, owned partly by Premium Porc Feed SRL 1.233 4.705

Olsuin SRL, owned partly by Premium Porc Feed SRL 487 -1.254

Premium Porc Sibiu SRL, owned partly by PP Feed SRL -115 -1.077

Premium Vet Depot SRL 111 100

Premium Pork Commercial SRL , merged w. PP Feed SRL -2 -5

2.410 6.347

32 Financial Income

Interest bank deposits

Interest on loans to subsidiaries 338 225

Exchange rate adjustment 0 0

342 227

33 Financial Expenses

Interest bank debt 0 0

Interest on loans from shareholders 190 228

Exchange rate adjustment 7 1

198 230

34 Income Taxes

Adjustment of deferred tax -13

-12

-13 -12

Annual Report 2024

Notes – Parent

Notes to Parent Financial Statements

Note: All subsidiaries are 100% controlled and are all 100% owned directly or indirectly by Premium Pork International A/S.

Note EUR '000

2024 2023

Investment in subsidiaries

Cost beginning of year

47.918 47.921

Additions for the year 0 10.675

Disposals for the year 0 -10.678

Cost end of period 47.918 47.918

Apraisal increases at beginning

38.705 29.805

Result for the period in subsidiaries

2.410 6.347

Exchange adjustments in subsidiaries

-316 436

Appraisal of subsidiaries

727 2.179

Hedging in subsidiaries

-121 -61

Appraisal increases at end of period

41.405

38.705

Carrying amount at end of period

89.324 86.623

Corporate Structure

(As is from December 31

, 2024)

EUR '000

2024 2023

Ownership

interest in %

Premium Porc SRL 100

12.519 12.966

Consinterfin SRL 100

554 98

Agro Investments Moldova SRL 100

2.314 1.626

Premium Porc Negreni SRL 100

7.622 6.740

Premium Porc Feed SRL 100

27.939 28.042

Degaro SRL 100

27.989 26.903

Olsuin SRL 100

5.996 5.552

Premium Porc Sibiu SRL 100

3.869 4.041

Premium Vet Depot SRL 100

520 413

Premium Pork Commercial SRL 100

0 242

89.324 86.623

All subsidiaries are registered in Romania.

The carrying amount of investments

in subsidiaries:

Annual Report 2024

Notes – Parent

Notes to Parent Financial Statements

Note 42: Guarantees and other contingent liabilities

The parent has made a corporate guarantee for subsidiaries debt to credit institutions. The

guarantee is limited to EUR 37.1m. The actual debt was EUR 35.1m end of year.

The Entity guarantee for the Parent Company’s debt to Nordea Denmark if any. The actual debt

was EUR 0 end of year.

The Entity participates in a Danish joint taxation arrangement in which DCH International A/S

serves as the administration company. According to the joint taxation provisions of the Danish

Corporation Tax Act, the Entity is therefore liable from the financial year 2016 for income taxes

etc. for the jointly taxed entities and for obligations, if any, relating to the withholding of tax on

interest, royalties and dividends for the jointly taxed entities. The total known net liability of the

jointly taxed entities under the joint taxation arrangement is evident from the administration

company’s financial statements.

Note 40: Financial risks

Reference is made to the description of financial risks for the Group in the Notes to the

Consolidated Financial Statements. The Parent Company is not considered to be subject

to any special financial risks other than those disclosed in the Notes to the Consolidated

Financial Statements.

Note 41: Assets charged and securities

Letter of subordination has been issued to banks in respect of loans granted to

subsidiaries of EUR 2,100k.

Note EUR '000

2024 2023

Loans and receiveables, subsidiaries

Subordinated loan to Premium Porc Feed SRL 2.100 2.500

Total loan to subsidiaries subordinated

2.100 2.500

Total receivables from subsidiaries

575 657

Total loans and receiveables, subsidiaries

2.675 3.157

Subordinate Loan Capital

Payable after 5 years

100 100

Payable between 2 and 5 years

1.600 2.400

Long term debt

1.700 2.500

Short term debt

400

2.100 2.500

The subordinated loan carries an interest on approx. 6% p.a.

Other liabilities

Employee related payables

133 116

Other payables

26 20

159 136

42 Related parties and ownership

EUR '000

2024 2023

2.100 2.500

126 125

575 657

212 100

1.391 1.141

305 276

Reference is made to note 24 (Note to the Consolidated Financial Statements) for details of

the Groups transactions with the Parent Company.

O. services or reinvoiced costs from the Company

to subsidiaries:

Management and secondment services amounts

to:

Outstanding amount at Year-end:

Financial expenses for the year amounts to:

The subsidiaries have obtained subordinate

loans from the Company:

Other interest bearing debt and intercompany

amounts from the Company:

The subsidiaries have received management

and secondment services as long as other

services from the Company:

Transactions between the company

and the subsidiaries:

Outstanding amount at Year-end:

Interest for the year amounts to:

Annual Report 2024