the total feed business

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the total feed business

ForFarmers N.V.

Roadshow presentation 1H 2017

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NOTIFICATIONS AND DISCLAIMER

REPORTING STANDARDS

PUBLICATION 2017 HALF-YEAR REPORT

The 2017 half-year report (incl. condensed consolidated interim financial statements) will be available from 17 August 2017 on the ForFarmers website (www.forfarmersgroup.eu).

REPORTING STANDARDS

The results in this presentation are derived from the ForFarmers 2017 half-year financial statements, which have not been audited by the external auditor, and have been drawn up in accordance with the International Financial Reporting Standards as adopted by the EU (IFRS).

General remark: percentages are presented based on the rounded amounts in million euro

SUPERVISION

In view of the fact that shares are freely tradable on EURONEXT Amsterdam, ForFarmers operates under the supervision of the Financial Markets Authority (AFM) and the company acts in accordance with the prevailing regulations for share-issuing companies.

IMPORTANT DATES

09-11-2017 Publication Q3 2017 Trading Update 13-03-2018 Publication 2017 annual results 26-04-2018 Annual General Meeting

03-05-2018 Publication Q1 2018 Trading Update 16-08-2018 Publication first half-year 2018 results

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements, including those relating to ForFarmers legal obligations in terms of capital and liquidity positions in certain specified scenarios. In addition, forward-looking statements, without limitation, may include such phrases as “intends to”, "expects“, “takes into account”, "is aimed at“, ''plans to”,

"estimated" and words with a similar meaning. These statements pertain to or may affect matters in the future, such as ForFarmers future financial results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties, which may mean that there could be material differences between actual results and performance and expected future results or performances that are implicitly or explicitly included in the forward-looking statements. Factors that may result in variations on the current expectations or may contribute to the same include but are not limited to: developments in legislation, technology, jurisprudence and regulations, share price fluctuations, legal procedures, investigations by regulatory bodies, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statements or the actual results of ForFarmers, are discussed in the last published annual report. The forward-looking statements in this presentation are only statements as of the date of this document and ForFarmers accepts no obligation or responsibility with respect to any changes made to the forward-looking statements contained in this document, regardless of whether these pertain to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.

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The European leader in Total Feed solutions

 #1 European Total Feed solutions provider

 Servicing over 25,000 farmers

 Total Feed volume of 9.3mT¹⁾

 Completed 9 acquisitions since 2012

 Approx. 2,273 employees²⁾

− 632 commercial functions³⁾

• c. 400 on site advisors

ForFarmers’ products, clients and species Overview

Sustainable growth on the back of acquisitions

46% 32% 22%

ForFarmers’ core markets

Headquarter

Locations (42)

114 119

401 390 394 424 407

30 34

81

69

86 90 94

0 50 100 150

0 150 300 450

2010 2011 2012 2013 2014 2015 2016

Gross profit EBITDA (RHS) Volume¹⁾:

EURm

Acquisitions

All farm sizes

Ruminant

Swine

Poultry

EURm IFRS

Dutch GAAP

1) Total Feed volume 2016 in million metric tonnes (mT) 2) FTEs as at year-end 2016, excludes dealers 3) As at 31/12/2016

Source: ForFarmers

Total Feed solution Compound

feed

Specialties

Dry Moist Liquid (DML)

Crop

On-farm advisory

and support

NL UK GE BE

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Executive committee

Yoram Knoop

1983, Arthur Andersen

1) Including years at BOCM PAULS Source: ForFarmers

 Since September 2000

 With the company since 1983

 Since June 2014

 Previously BOCM PAULS

 Since January 2016

 Previously Louis Dreyfus, Nutreco, Cargill

Countries

 Since July 2012

 Previously BOCM PAULS

 Since July 2014

 Previously Provimi, Unilever

Functions

Jan Potijk

COO the Netherlands Steven Read

Purchasing, Pricing & FormulationOperations and supply Chain

Stijn Steendijk

Strategy & Organisation

Adrie van der Ven

COO Germany, Belgium and new markets

Iain Gardner

COO United Kingdom

x/x Years with the company¹⁾/Years active in the industry 31/31

2/8 29/29 34/34

3/8

4

4/10 6/16

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From regional compound feed cooperative to leading European listed Total Feed company

Bus in ess

2006 2016

1896 1901

Expansion in the value chain Foundation

Feed volume sold to members

Listing on Euronext Amsterdam Separation cooperative

and business operations;

new name ‘ForFarmers’

Nutreco partnership in Specialties and Micros

O rg an isa ti on

Incorporation of cooperative

Several cooperative mergers, including the merger of ABC

and CTA into ABCTA

International expansion

85% 15%

100%

Back to the core

2003

2000

Purchase and sales organisation

2005

Launch of the ‘Equity on Name’ (VON)

initiative

2014

Focus on

Total Feed solutions 2012

International expansion in Belgium, Germany and the UK Various acquisitions:

 Cefetra

 Plukon

 Esbro

Various divestments:

 Cefetra (2012)

 Plukon

 Esbro

Source: ForFarmers

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Development ownership structure

 At year end 2016, the cooperative FromFarmers had a direct stake in ForFarmers of 20.8% and a controlled stake of 59.4%¹⁾

 The directly controlled stake of 20.8% will be reduced to approximately 17.5%, allocating the last final tranche of equity to individual members mid 2017

 The allocated equity is held by individual members in the form of a position on Participation Accounts (PAs) or in Depositary Receipts (DRs), which were tradable on a Multilateral Trading Facility until 23 May 2016

 Since the listing of ForFarmers on Euronext Amsterdam on 24 May 2016, PAs and DRs can no longer be traded. Holders of PAs and DRs can convert their positions into Shares at their full discretion and without involvement of ForFarmers or FromFarmers.

 Third parties held 34.7% as at year end 2016.

 Average daily traded volume more than tripled (from approx. 40,000 per day on trading platform) on Euronext Amsterdam (**??on the basis of double counting??)

1) This consists of 20.8% direct control Shares, 32.5% Shares for which Participation Accounts have been issued) and 6.1% voting instructions on the Depositary Receipts of members (as per 31/12/2016).

In addition, FromFarmers can also give voting instructions in relation to DRs which are held by others than members 2) Consists of Members with certificates, Lock up shares employees, and third parties

Ownership

95.3% 94.2%

84.7%

68.3%

56.9%

47.5%

37.8%

31.1% 25.4% 20.8% 17.5%

4.7% 5.8%

5.9%

8.1%

12.4%

17.5%

25.9%

31.1% 39.0% 46.8%

9.4%

23.6%

30.7% 34.9% 36.3% 37.8% 35.6% 32.5%

82.5%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cooperatie Other² Members participation accounts Total 3rd party

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ForFarmers addresses increasing need for sustainable food production

Core val u es Vi sio n Missio n

Ambition

We drive for next level results

Sustainability

We are here to stay

Partnership

We believe in win-win

We aim to be the leading livestock nutrition company in Europe by supplying economic and sustainable Total Feed solutions on farm

‘For the Future of Farming’ is ForFarmers’ promise to farmers: we work side-by-side with our customers for the long-term good of their farms and of the sector as a whole.

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Key investment highlights

#1 Total Feed solutions provider to farmers in Europe with leading positions

Active in resilient markets with growth opportunities Central position in value chain to farmers

Focussed strategy to further enhance and expand business: Horizon 2020 Clear and proven M&A strategy to drive further expansion

Sustainability is a vital element in business model

Attractive financial performance and profile

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Complete portfolio to support our trusted advisor role

Product Description Application Examples Value add

Compound feed

Mix from various raw materials and premix and additives

Finished products to be fed as a complete feed to animals

 Compound feed

 Blends 

Specialty feed additives

Specific (complex) nutrients

Specially designed for home mixing, young animals and animals in transition

 Premixes

 Additives (e.g. Selko)

 Dairy Speciality (Translac)

 Piglet feed (VIDA)

 Calf milk replacers (e.g. VITAMILK)

 Concentrates (e.g. MIXX, Blendix)



DML

Dry, Moist and Liquid (DML) co- products

Supplemental to rations

 Rapeseed meal (D)

 Feedmix RV (D)

 Beet pulp (M)

 Corngold® (M)

 Citrocell (M)

 DGS Protiwanze® (L)



Crop

Broad product portfolio to support crop production

Nutrient planning, cultivation

techniques, crop protection, rotations, variety choice, etc.

 Seeds (Topgrass)

 Silage additives

 Crop protection

 Fertilisers



Source: ForFarmers

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Total Feed solutions tailored towards key species

Volumes in core countries per key species and products (2016)

¹⁾

Focus on key species

Poultry

Layers Broilers

Key species

Ruminant

Dairy Beef, Goat, Sheep

Swine

Fatteners

United Kingdom

Other

Belgium/Germany

Other species (e.g. horses, turkeys)

Crop Sows and piglets

Netherlands

4.3mT 2.0mT 3.0mT

Organic feeds produced for all species

4.3mT 2.0mT 3.0mT

9.3mT 9.3mT

Total per species Total per product

1) Excludes intercompany sales Source: ForFarmers

CAGR 15E-20F: 1.0% CAGR 15E-20F: 0,1% CAGR 15E-20F: 0,4%

Compound feed Specialties DML Crop Other Ruminants

Swine Poultry Other

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Focussed on feed solutions delivered on farm

Distributors

Feed mills and specialty feed producers

Livestock farmers

Dairy processing, slaughterhouse &

egg packers

 Direct access to the farm

 Integrated solution provider to the farmers

 No channel conflicts

ForFarmers’ position in value chain has advantages

Listed (illustrative) Non-listed

Grains &

oilseeds growers

Commodity traders/

processors

Additives producers Premix producers

Companies active in multiple segments of the value chain

Retail &

consumers

A cc e ss to fa rm g at e

Focussed players

Source: ForFarmers

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Leading market positions in ForFarmers’ markets

6.4 6.0 3.9 4.5 4.3 4.1 3.4 3.2 2.8 2.7 2.4 2.2 2.0 1.7 1.6

2.0 ForFarmers

De Heus Nutreco DLG Group Agrifirm Feed Agravis Raiffeisen Avril Group Veronesi Deutsche Tiernahrung InVivo Danish Agro Group AB Agri Triskalia Broring Aveve

1) WattAgNet (latest available data); comprises poultry, pig, ruminant, pet, horse and aqua feed, compounds, premixes, additives, integrators and vendors and may include volumes outside EU 2) ForFarmers’ estimates

3) Noble and 2Agricullture are vertically integrated players; ForFarmers is #1 amongst the non-vertically integrated players Source: ForFarmers, WattAgNet

Feed production volumes of the largest producers in Europe (2014-15, mT)

¹⁾

Netherlands

Company Compound feed production (mT) Total feed

#1 Agrifirm 2.7

#2 ForFarmers 2.6

#3 De Heus 2.0

#4 Fuite 0.7

Leading positions in core countries (2015)

²⁾

#1

Aqua feed

United Kingdom

#1 AB Agri 2.2

#3 2Agriculture³⁾ 0.7

#4 Noble³⁾ 0.7

Belgium

#1 Aveve 1.3

#2 VandenAvenne 0.6

#4 Quartes 0.4

Germany

#1 Agravis 3.6

#2 DTC 2.4

#3 Bröring 1.5

#1

#3

#4

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Resilient markets with growth opportunities

Split of total feed demand by product type, in the Dutch swine segment (in % of total)

Distribution of swines by farm size in ForFarmers countries of operations²⁾

11% 9% 8% 6%

57% 55% 50% 44%

32% 36% 42% 50%

2005 2007 2010 2013

Share of ForFarmers’ dairy customers using data recording systems by country (in %)

1) Live stock unit (LSU, a Eurostat definition) - measure of economic value of each animal type. 1 LSU = 1 cow or c. 143 broiler chickens or 2 breeding sows 2) Aggregate of BE, NL, DE and UK

Shift in farm size

More home mixing

More demanding

legislation Changing

industry trends and

consumer preferences

Increased use of data in

farm management

1

2 3 4

5

1. Minimise ammonia (NH3) and phosphorus (P) emission (in the Netherlands from 2017) 2. Specialised feed to reduce aggressiveness of

chickens 1. Non-GMO demand by retail

2. Support of higher number of piglets per sow with milk replacers

Less than 100 100-500 Over 500

Provides for changing customer needs

Farm size in LSU¹⁾

2015 2020

Compound feed Concentrates Premix

Young animal feed Dry co-products Moist & Liquid co-products

51% 56%

Investment of larger farms into home-mixing provides opportunities to leverage the Total Feed Business portfolio 5%

16%

25%

57%

BE DE UK NL

Provides potential for increasing usage of

data recording systems

1 2 5

Feed industry provides solutions for

4

Requires new solutions from feed industry

3

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Central position in value chain to farmers

ForFarmers’ From Feed To Farm approach

Feed milling Logistics &

delivery Formulation,

Nutrition & Procurement Raw materials

suppliers

ForFarmers:

Production, supply and application of Total Feed solutions

Farmers

Dairy processors, slaughterhouses &

egg packers

Retail &

Consumers

Source: ForFarmers

On-farm feed solution advisory

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Milking High & healthy milk

productions

Transition Improvement health

& fertility

Rearing Optimal life-start

Roughage More production

& high quality

Delivering customer value

Modular portfolio structured along core farm processes

Support tools to deliver the best solution & monitor results

- tool for integral farm optimisation

Optifeed

Dietplan Checklist plan Checklist plan CRV Mineral

Fertilizing

Monitoring: animal feed profit & animal analysis

On-farm application

On-farm advisory and support is delivered by advisor

Integrated approach

Partner and deliver the Total Feed Business portfolio

Tap into fast growing, large &

attractive markets in Europe-Plus

Expand beyond home-markets Fine-tune NL & UK Strengthen BE & DE

Regional market share Scale

Portfolio

Rationale for leading market share

 Leverage sales force and organise it by species

 Optimise production capacity with dedicated plants by species

 Leverage overhead and R&D functions

 High regional market shares in order to optimise logistics

 Direct access to the farmer with plants located near by

 Add capabilities or segments to the portfolio

− Capabilities: DML, Crop, specialties

− Segments: e.g. sow, piglets, poultry or dairy

Several elements may be driving one-off expansion opportunities

Wider application

of ForFarmers’

capabilities

 Sourcing

 Proven nutritional knowledge

 Track record in logistics optimisation

 Function expertise: specie strategies, sales excellence, go-to-market approached

Risk assessment  Proper and detailed risk analysis (political, compliance, currency)

Region/country specific aspects

 Faster growing markets with local/regional consolidation opportunities

 Sizeable free markets with attractive specie characteristics Perspective of

synergies

 Leverage overhead functions

 Nutrition and innovation

 Go-to-market strategies

 Overall best practice sharing

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Strengthen positions in Belgium and Germany

Strong logistical & production expertise and high market shares drive economies of scale

0%

1%

2%

3%

4%

5%

6%

7%

0% 5% 10% 15%

EBIT margin (2016)

Market share compound feed (2016)

Top 3

Sources: Feed production volumes Germany, the United Kingdom, the Netherlands and Belgium from FEFAC industrial compound feed production data, market share top 3 and number of players in Netherlands and Belgium ForFarmers’ estimates, number of German players based on Deutscher Verband Tiernahrung data, number of players in UK based on AG Industries estimate. Includes feed for poultry, cattle and pig categories, as defined by FEFAC (other categories such as pet food, are not included

Top 3

Feed production has been stable and moderately growing (in mT)

NL

UK

DE/BE

Top 3 c. 150 players

Local/regional market share is an important driver of profitability Lower levels of consolidation may provide opportunities

¹⁾

Germany

Belgium

The Netherlands The UK

c. 50 players

c. 300 players c. 90

players

19.3 20.0 23.1

6.0 6.0

6.2

2004 2009 2014

1.8%

0.3%

CAGR 2004-14

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Source: ForFarmers

Sustainability is a vital element in business model

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Source: ForFarmers

Sustainability: key element in Horizon 2020 strategy

Theme Material Aspect KPI

Environment

Limit phosphate pollution 1) % phosphate efficiency on farm in NL (dairy and swine farmers)

Limit greenhouse gas emissions 2) GHG emissions in metric tons of CO₂ equivalent

Minimise the use of land, water and energy 3) % sustainable soy bean meal and palm oil

People and society

Ensure safe and fair working conditions 4) Number of Lost Time Incidents

Improve feed safety 5) Total number of feed incidents of non- compliance with regulations and voluntary codes

Animal health and welfare

Improve animal health and welfare Improve animal health and welfare is deemed an integral part of Total Feed solutions for which no KPI is specifically set

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FINANCIALS H1 2017

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Highlights

Recovery agricultural sector, particularly on the Continent - Financial position farmers improved due to higher milk and swine prices; egg prices on Continent better than in 1H 2016, in UK still under pressure

- Ruminant: slight volume growth NL, impact phosphate measures limited; G/BE growth, volume decrease in United Kingdom (‘UK’) due to reduced herds

- Swine: volume increase due to Vleuten-Steijn (NL); G/BE growth;

UK volume stable despite reduced herds

- Poultry: volume growth to broiler farmers in all clusters, particularly in G/BE; increase volume to layer farmers in NL and G/BE,

UK volume stable

Growth in Total Feed volume (3.6%)

Higher growth compound feed (6.2%) mainly due to acquisition Gross profit: 0.4% increase (incl. negative currency translation impact of 3.2%); like-for-like increase: +2.8%

First half-year 2017

(1)EBITDA excluding incidentals (2) AMR = Anti Microbial Resistance

ForFarmers performance per cluster

NL :

17.6% growth underlying EBITDA

¹ G/BE:

3.8% growth underlying EBITDA

UK:

27.5% decrease underlying EBITDA

(including 9.5% negative currency translation )

Group

overhead:

Decrease of costs realised of €1.1m

14.8% growth underlying EBITDA at constant currencies

- Share buy-back programme: repurchased for €23.6 million - Supply chain optimisation plan (UK): steady progress - Sustainability:

Melk€fficient helps farmers reduce phosphate production Feed2Milk forms base for new dairy range in UK

AMR

²

meetings organised in UK

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Solid growth underlying EBITDA ¹

(in €m)

1H 17 1H 16 Total

Change

Currency M&A² Like-for-

Like³

Explanation

Volume Total Feed 4,725 4,562 3.6% - 2.6% 1.0% Growth in NL and G/BE, decrease in UK

Gross profit 207.3 206.5 0.4% -3.2% 0.8% 2.8%

Growth in NL and G/BE: higher volumes, better product mix & formulation; decrease in UK: fewer animals, lower-value feed

Other operating income 0.5 2.4 1H16: incl. incidental gain from land sale and Leafield

Employee benefit expenses -75.4 -77.0 NL and G/BE higher due to strengthening organisation,

UK: lower (reorganisation effect)

Depreciation and amortisation -12.7 -13.2 Effect of €1.1m due to extension depreciation term

(mainly plants & machinery)

Other operating expenses -81.0 -85.9

Continent: more volume related production costs, UK:

savings, (net) release €1.1m provision bad debts. 1H16 incl. €1.5m for listing

Total Operating expenses -169.1 -176.1 -4.0% -3.4% -0.1% -0.5% 1H16 incl. €1.6m for reorganisation UK Operating profit (EBIT)

incl. incidental items 38.7 32.8 18.0% -2.5% 5.2% 15.3%

EBITDA 51.5 46.0 12.0% -2.9% 4.3% 10.6%

Incidental items 0.3 0.3

Centralisation back office activities. 1H16:

reorganisation costs (UK) largely compensated (sale of land and Leafield)

Underlying EBITDA 51.7 46.3 11.7% -3.1% 4.3% 10.5%

Translation-effect 1.4 Devaluation Pound sterling

Underlying EBITDA at

constant currencies 53.1 46.3 14.8%

General remark: percentages are presented based on amounts rounded in million euro and additions may lead to small differences due to rounding (1) EBITDA excl. Incidental items; (2) M&A means net effect acquisitions/divestments;

(3) like-for-like is excl. currency and effect of acquisitions/divestments

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Solid profit improvement

(in €m)

1H 2017 1H 2016 Explanation

Operating profit 38.7 32.8

Net finance costs -0.8 -2.0 Interest charges UK lower due to one-off payment into

closed pension fund Share of profit of equity-accounted investees,

net of tax 1.8 1.5

1H16: contribution warehouse activities HaBeMa negatively impacted on lower trading volumes due to decreasing commodity prices

Income tax expense -9.1 -7.2

Profit for the period 30.6 25.1 Up by 21.9%

Effective Tax Rate (in %) 24.2% 23.3% Adjustment tax rules in NL on innovation subsidies and relative share UK results were lower

Non-controlling interests -0.2 -0.1

Profit attributable to owners of the company 30.4 25.0 Up by 21.6%

Basic earnings per share (in €) 0.288 0.236 Basic earnings per share up 22.0%

underpinned by share buy-back programme

25

General remark: percentages are presented based on amounts rounded in million euro

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Healthy capital structure

Condensed consolidated balance

(In €m)

30-06-17 31-12-16

Non-current assets 336.9 333.6

Current assets

- Cash and cash equivalents 147.7 152.9

- Other current assets 296.7 289.8

Total assets 781.3 776.3

Equity 407.8 429.0

Non-current liabilities

- Loans and borrowings 44.7 45.6

- Other 76.6 86.2

Current liabilities

- Bank overdrafts 66.5 45.5

- Other current liabilities

¹

185.7 170.0

Total equity and liabilities 781.3 776.3

(In €m)

30-06-2017 31-12-16

Solvency ratio

¹

52.2% 55.3%

ROACE

²

23.6% 21.1%

Net Working capital 111.1 119.9

Other current assets 296.7 289.8 Other current liabilities 185.7 170.0

Overdue receivables 15.2% 18.6%

Net Debt / (Cash) (36.5) (61.5)

Equity: impact of share buy-back programme

Other non current liabilities comprise a.o. pension

liabilities; early January one-off payment €11.7m in closed fund UK

(1) Solvency ratio is total equity divided by total assets (2) ROACE means underlying EBITDA/average capital employed on 12 months rolling average

26

(1) incl. current loans and borrowings

Additions may lead to small differences due to rounding

(27)

Growth Return on Average Capital Employed (ROACE) ¹

27 Increasing return on consolidated average capital employed (ROACE)

 ROACE varies significantly amongst clusters:

NL assets based on historical value, assets G/BE and UK on market value on moment of acquisition

ROACE per geographic cluster for 1H 2016 & 1H 2017

1) ROACE up to 2015: Underlying EBITDA/average capital employed (begin – end year);

as of 2016: Underlying EBITDA/average capital employed on 12 months rolling average;

2015 adjusted to enable comparison, Reference made to Note 27 Financial Statements 2016

20.0% 20.5%

19.2%

21.6%

21.1%

23.6%

18%

19%

20%

21%

22%

23%

24%

2014 2015 2015 2016 1H 2016 1H 2017

44.2%

11.1%

15.1%

46.2%

13.1% 12.7%

NL D/BE VK

1H 2016 1H 2017

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Total Feed volume development

Volume Total Feed: +3.6% (4.7 mT) - Compound feed +6.2% (3.3 mT)

The Netherlands: + 8.4% (2.2 mT) - volume growth in ruminant and poultry

- strong volume growth in swine resulting from Vleuten-Steijn acquisition (excl. VS: small decline)

- higher increase compound feed than Total Feed - significantly higher volume increase organic feed (Reudink)

Germany/Belgium: +5.2% (1.0 mT) - significant volume growth in layers (poultry)

- volume growth in ruminant, swine and broilers (poultry) - higher growth in compound feed than Total Feed

United Kingdom: -3.9% (1.5 mT) - impact divestments, like-for-like decline 1.8%

- volume decrease in ruminant - volume to swine farmers stable - volume growth to poultry farmers

- decline in volume compound feed in line with Total Feed

28

2,051

977

1,535

4,562

2,222

1,027

1,475

4,725

NL G / BE UK Total

Total Feed volume development per cluster

1H 16 1H 17

NL 47%

G / BE 22%

UK 31%

1H 2017 Volume split per cluster

Development percentages are presented based on actual (non-rounded) volumes in tonnes

(29)

Gross profit: growth NL and G/BE larger than decrease UK

(in €m and %) Reported 2016 – 2015

Total Difference 2016 vs 2015

Currency

impact M&A

¹

Like-for-like

²

movement

Gross profit 207.3 206.5 0.8 0.4% -6.7 -3.2% 1.6 0.8% 5.9 2.8%

Gross profit per cluster

The Netherlands: + €11.8 million (12.0%) - Higher volumes (like-for-like & by means of acquisitions) and growth organic feed

- More high-quality feed & better formulation (optimal use of ingredients in feed)

- Increase gross profit Reudink (organic) and Pavo (horse feed) - Vleuten-Steijn acquisition per 1.10.2016

Germany / Belgium: + €1.6 million (4.8%)

- Higher volumes (direct and through attracted new dealers) - Better product mix and further improvement formulation

United Kingdom - €12.6 million (-17.2%) - Negative currency translation effect of €6.7 million

- Lower volumes on cattle and swine herds (number of animals have not yet recovered)

- Divestment effect non-core activities Wheyfeed and Leafield - Cattle farmers continued to buy lower value feed

- Margin pressure in swine sector due to ongoing consolidation

29

Additions may lead to slight differences due to roundings; (1) M&A means net effect acquisitions/divestments;

(2) Like-for-like means excluding currency impact and net effect acquisitions & divestments 98.4

34.5

73.4

206.5

110.2

36.1

60.8

207.3

NL G / BE UK Total(1)

Gross profit

1H16 1H17

(1) Incl. Group/eliminations (0.2) for both 1H16 and 1H17

(30)

Results per cluster

1H-2016

Total Feed Volume (k tonnes) 2,222 2,051 1,027 977 1,475 1,535 - - 4,725 4,562

Revenue

560.0 501.6 267.8 261.4 315.7 339.1 -32.9 -31.6 1,110.6 1,070.5

Gross profit

110.2 98.4 36.1 34.5 60.8 73.4 0.2 0.2 207.3 206.5

Operating profit

34.3 28.9

¹

4.7 4.8 5.5 8.4 -5.8 -9.3 38.7 32.8

EBITDA 38.0 33.1¹ 6.6 6.7 11.0 14.0 -4.2 -7.9 51.5 46.0

Incidental items -0.1 -0.9 0.4 - - 1.2 - - 0.3 0.3

Underlying EBITDA 37.9 32.2¹ 7.0 6.7 11.0 15.2 -4.2 -7.9 51.7 46.3

Currency translation effect

- - - - 1.4 - - 1.4

Underlying EBITDA

at constant currency

37.9 32.2

¹

7.0 6.7 12.4 15.2 -4.2 -7.9 53.1 46.3

EBITDA/gross profit ratio 34.4% 32.8% 19.3% 19.5% 18.2% 20.7% - - 24.9% 22.4%

Additions may lead to slight differences due to rounding

(1) Operating expenses in 2016 have been adjusted for comparative purpose, due to refinement of overhead costs allocation on cluster level

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• Total Feed Support implementation in NL on course

• Portfolio optimisation and harmonisation projects on track in all species

• Strategic partnership with Chr. Hansen on silage additives successful in NL

Horizon 2020 – Activities update

• CRM system operational in all clusters, transition of sales approach initiated

• Strong growth in organic (ecological) feed solutions (Reudink)

Focus on attractive segments

Partner and deliver the Total Feed Business portfolio

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Horizon 2020 – Activities update

• Health & Safety: continuous focus leads to improvement of awareness

• New purchasing department (across countries by commodity categories/buyers):

project initiated ‘do more with less suppliers’

• Opening new central office Bury St Edmunds (UK) May 2017

• Steady progress supply chain optimisation plans (UK)

• Completion new plant Exeter (UK) Q4 2017, slightly later than planned

One ForFarmers: functional excellence & leverage scale

32 • Vleuten-Steijn (October 2016): positive contribution to swine sector in NL and G

• Small dealer (Wilde Agriculture, May 2017) in UK (with which business was already done)

Acquisitions

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Horizon 2020 – Deliverables update

• Total Feed approach helps dairy farmers in NL deal with phosphate challenges

• Vleuten-Steijn swine feed approach integral part of ForFarmers portfolio

• Feed2Milk also introduced in UK, first findings by customers very positive

Total nutrition solutions

33 • Underlying EBITDA at constant currencies: +14.8% to €53.1m

• Underlying EBITDA/gross profit: 24.9% (1H16: 22.4%)

• Earnings per share: +22.0% to €0.288

Results 1H 2017

• Employee survey confirms high engagement and progress on identified issues; still work to do

• Management XL meeting: 250 senior staff, update & implementation Horizon 2020

• Poultry Academy started

• ‘Farming for non-farmers’ employee training initiated

• Approximately 25% of total staff shareholder ForFarmers

Employee development

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Outlook 2017

• Geopolitical developments: in 2H 2017 also of influence on ForFarmers’ markets

• Volatility in raw material prices and on currency markets difficult to predict

• Devaluation Pound sterling affects consolidated results

• Demand for dairy products: continued steady growth

• Swine prices have started limited decline from historically high levels:

- increase international competition for European export market - growth Chinese swine production

• Increasing demand for poultry

• 2H 2017 expected to show lower percentage growth underlying EBITDA than solid increase in 1H 2017:

- Vleuten-Steijn: contribution of one quarter instead of two (acquisition date October 2016)

- 2H 2017 impact phosphate measures (per 1-03-2017) in NL likely larger than in 1H 2017, but on annual basis likely lower than earlier pronounced 5% negative impact on NL dairy volumes

- Uncertainty UK farmers over Brexit, size of cattle and swine herds not yet recovered;

our recovery in UK taking longer than planned

- Fipronil case poultry (NL): volume in NL and B expected to be impacted; at this moment expectation is marginal volume impact on group level

• Reconfirmation guidance: for the medium term an on average annual underlying EBITDA growth in the mid single digits at constant currencies, barring unforeseen circumstances

• Confirmation full use of authorised amount (€60 million) share buy-back programme

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Summary

Underlying EBITDA (at constant currencies) : +14.8%

Profit: 21.6%

EPS: 22.0%

Improvement result on

contribution from all pillars Horizon 2020 strategy

Steady progress supply chain optimisation plans in UK

Reconfirmation guidance: on average annual underlying EBITDA growth in mid single

digits at constant currencies For 2H 2017 less strong %

increase underlying EBITDA than in 1H 2017 expected

due to a.o challenging situation UK

35 Healthy like-for-like gross profit growth (2.8%) Growth in NL and G/BE larger

than decrease in UK

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Contact

Caroline Vogelzang

Director Investor Relations &

Communications

Mobile: +31 6 10 949 161 Landline: +31 573 288 194

Caroline.Vogelzang@forfarmers.eu

ForFarmers N.V.

Kwinkweerd 12 7241CW Lochem The Netherlands

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