Marel hf. - Financial Statement Release

Marel Q3 2013 results

Improved profit margins - Markets recovering at a slow pace

(All amounts in EUR)<ul><li><span style="font-size: 11pt;">Revenues for Q3 2013 totalled 156.9
million (m), a decrease of 4.5% compared to the same quarter of 2012
[164.3m].</span></li><li><span style="font-size: 11pt;">EBITDA was 19.5m or
12.4% of revenues [Q3 2012: 20.5m].</span></li><li><span style="font-size:
11pt;">Operating profit (EBIT) was 12.9 or 8.2% of revenues [Q3 2012:  14.1m].</span></li><li><span style="font-size: 11pt;">Net result for Q3 2013 was 6.0
[Q3 2012: 8.4m]. Earnings per share were 0.81 euro cents [Q3 2012: 1.15 euro
cents].</span></li><li><span style="font-size: 11pt;">Cash flow from operating
activities before interest and tax was 3.0m and 45.6 m YTD.  [YTD 2012: 37.0m].
Net interest bearing debt was 239.0m at the end of the quarter compared to
261.1m in Q3 2012.</span></li><li><span style="font-size: 11pt;">The order book
was at 138.3m at the end of the quarter [Q3 2012: 151.4m] and has increased by
4.9% since the end of last quarter [131.8m].</span></li></ul>Revenues for the
first nine months of 2013 amounted to 493.4m and show a 7.9% decrease compared
to the same period last year. This reflects challenging market situations and
slower recovery than originally expected.  Operating profit (EBIT) YTD is 7.2%
of revenues which is below the company´s target (10-12%) for the full year.
Marel expects the EBIT margin in Q4 to be in line with Q3. 

Market conditions are still challenging with signals of improvements. While
economic recovery seems to be gaining momentum in North-America, the Eurozone
is still fragile and signals from emerging markets remain mixed with positive
future prospects. 

Revenues from service and spare parts increased in Q3, while larger projects
continue to be an uphill climb. Improved profit margins this quarter signal
progress in operational efficiency and cost control despite delays of large
projects. 

Full year revenues 2013 are expected to decline by 6-8% compared with previous
year. Marel  expects moderate growth of revenues next year on the heels of
market recovery. 



Theo Hoen, CEO:

“Marel is performing on a reasonable level considering market conditions.  The
turnaround has been slower and more gradual than what we have seen before and
had previously expected.  Lack of investments in large projects is affecting
our revenue base. We remain confident that once the market bounces back we will
capture increased demand with investment need building up. We saw this happen
in 2009 when food processors delayed modernization of their equipment because
of the economic uncertainty. Then in 2010 we saw it bounce back as the
underlying demand for protein continued to grow as is the case now. In the
meantime we are utilizing our extensive sales and service network to generate
business by increased and better service to our customers. We remain optimistic
about the future prospects and that´s why we will continue to maintain our
network and a good level of investment in R&D while keeping our focus on
operational efficiency”. 



5% increase in order book

Orders received amounted to 163.3m in the third quarter compared to 159.1m in
Q2 2013. The order book amounted to 138.3m at the end of the third quarter
compared with 131.8m at the end of Q2 [Q3 2012: 151.4m]. This represents an
increase in the order book of around 5% compared with last quarter. This
development reflects gradual recovery in Marel's major markets while capturing
that growth in the order book is still somewhat restrained by the absence of
large projects.  This reflects the prolonged hesitation to invest in difficult
market environment. Investment decisions now take longer than before. This
applies to the market in general and Marel believes it is not losing market
share. The company´s position in the market is strong and long term outlook for
orders received is positive as the protein industry is expected to grow
steadily in the coming years and need for investments is building up. <span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
14pt;">Outlook                                                 </span>

Marel´s long term expected annual growth rate (CAGR) is 5-6%. The assumption
that markets will recover has not changed but it is taking longer than
anticipated. Marel expects that full year revenues will decline by 6-8% between
years and anticipates moderate growth of revenues next year on the heels of
market recovery. <span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif;">Mid- and
long-term, the company believes that Marel's innovative products and global
presence in all four industries will stimulate strong growth and increased
profitability as the underlying market growth is still present. </span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif;">It should
be kept in mind that results may vary from quarter to quarter due to general
economic developments, fluctuations in orders received and deliveries of larger
systems.</span>

See complete announcement in enclosed pdf. file.<span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif;"></span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
11pt;">Presentation of results, 24 October 2013</span>

Marel will present its results at an investor meeting on Thursday, 24 October,
at 8:30 am (GMT), at the company's headquarters at Austurhraun 9, Gardabaer.
The meeting will also be webcast at <span lang="EN-GB" style="font-family:
Arial, Helvetica, sans-serif;">www.marel.com/webcast</span>. <span lang="EN-GB" style="font-size: 11pt;">Publication days of Consolidated
Financial Statements in 2014</span><span lang="EN-GB" style="font-size: 11pt;">4th quarter 2013                   
           5 February 2014 </span><span lang="EN-GB" style="font-size: 11pt;">Annual General Meeting             
    5 March 2014</span><span lang="EN-GB" style="font-size: 11pt;">1</span><span lang="EN-GB"
style="font-size: 8pt;">st</span><span lang="EN-GB" style="font-size: 11pt;">
quarter 2014                                28 April 2014 </span><span lang="EN-GB" style="font-size: 11pt;">2</span><span lang="EN-GB"
style="font-size: 8pt;">nd</span><span lang="EN-GB" style="font-size: 11pt;">
quarter 2014                                23 July 2014</span><span lang="EN-GB" style="font-size: 11pt;">3</span><span lang="EN-GB"
style="font-size: 8pt;">rd</span><span lang="EN-GB" style="font-size: 11pt;">
quarter 2014                                22 October 2014</span><span lang="EN-GB" style="font-size: 11pt;">4</span><span lang="EN-GB"
style="font-size: 8pt;">th</span><span lang="EN-GB" style="font-size: 11pt;">
quarter 2014                                4 February 2015</span><span lang="EN-GB" style="font-size: 11pt;">Release of financial statements
will take place after market closing at above-mentioned dates.  </span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif;">For
further information, contact: </span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
11pt;">Linda Jónsdóttir Corporate Director of Treasury and IR, tel: (+354) 563
8464 / mobile: (+354) 825 8464.</span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
11pt;">Auðbjörg Ólafsdóttir, Investor Relations specialist, tel: (+354) 563
8626 / mobile: (+354) 853 8626.</span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
11pt;">Erik Kaman, CFO, tel: (+354) 563 8072.</span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size: 
 9pt;">About Marel </span><span lang="EN-GB" style="font-family: Arial,         
 Helvetica, sans-serif; font-size: 9pt;">Marel is the leading global provider of
 advanced equipment, systems and services to the fish, meat and poultry         
 industries. With offices and subsidiaries in more than 30 countries and a      
 global network of more than 100 agents and distributors, we work side-by-side  
 with our customers to extend the boundaries of food processing performance.    
 Advance with Marel for all your processing needs. </span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size: 
 9pt;"></span><b style="mso-bidi-font-weight: normal;"><span lang="IS" style="font-family:    
 Arial, Helvetica, sans-serif; font-size: 9pt;">Forward-looking                 
 statements</span><span lang="IS" style="font-size: 9pt;">Statements in this press release that   
 are not based on historical facts are forward-looking statements.   Although   
 such statements are based on management's current estimates and expectations,  
 forward-looking statements are inherently uncertain.  We, therefore, caution   
 the reader that there are a variety of factors that could cause business       
 conditions and results to differ materially from what is contained in our      
 forward-looking statements, and that we do not undertake to update any         
 forward-looking statements. All forward-looking statements are qualified in    
 their entirety by this cautionary statement.</span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size: 
 10pt;"></span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size: 
 10pt;"></span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size: 
 10pt;"></span><span lang="EN-GB" style="font-family: Times New Roman, Times, serif;
font-size: 12pt;"></span><span lang="EN-GB" style="font-family: Arial, Helvetica, sans-serif; font-size:
10pt;"></span>

Attachments:

Announcement Marel Q3 2013.pdf

Financial Statements Q3 2013.pdf