Marel hf. - Financial Statement Release

Correction -Marel Q4 and full year 2014 results- At the customer, for the customer, while refocusing

The announcment is sent again because the PDF version of the Press release in
Icelandic had to be replaced. All attachments in english are the same as in
previous version. 



(All amounts in EUR)

Q4 2014 - Record order intake and strong cash flow

  --  Revenue for Q4 2014 totaled 200.0m [Q4 2013: 168.2m].
  --  Adjusted EBITDA* for Q4 2014 was 28.1m or 14.1% of revenue. EBITDA was
     21.0m or 10.5% of revenue [Q4 2013: 14.1m].
  --  Adjusted operating profit* (adj.EBIT) for Q4 2014 was 16.1m or 8.0% of
     revenue. EBIT was 8.5m or 4.2% of revenue [Q4 2013: 7.4m].
  --  Net result for Q4 2014 was 3.0m [Q4 2013: 3.7m]. Earnings per share were
     0.41 euro cents [Q4 2013: 0.50 euro cents].
  --  Cash flow from operating activities before interest and tax was 32.7m [Q4
     2013: 34.7m]. Net interest bearing debt was 174.3m at the end of Q4 2014
     [Q4 2013: 217.1m].

Full year 2014 - At the customer, for the customer, while refocusing

  --  Revenue for 2014 totaled 712.6m, an increase of 7.7% compared with the
     previous year [2013: 661.5m].
  --  Adjusted EBITDA* was 83.7m or 11.7% of revenue. EBITDA was 66.7m or 9.4%
     of revenue [2013: 69.4m].
  --  Adjusted operating profit* (adj.EBIT) for 2014 was 48.8m or 6.8% of
     revenue. EBIT was 29.2m or 4.1% of revenue [2013: 42.9m].
  --  Net result for 2014 was 11.7m [2013: 20.6m]. Results were affected by
     one-off costs associated with the refocusing actions in 2014. Earnings per
     share were 1.60 euro cents [2013: 2.81 euro cents].
  --  Cash flow from operating activities before interest and tax was 102.2m
     [2013: 80.3m]. Net interest bearing debt was 174.3m at the end of the year
     [2013: 217.1m].

Marel achieved 7.7% revenue growth in 2014 and an adjusted EBIT of 48.8 million
in line with management guidance.  Order book in the beginning of 2015 stands
at 175 million compared with 132 million in the beginning of 2014.  Management
guidance for 2015 is organic revenue growth, with a solid increase in
operational and net profit. Full focus remains on strengthening the market
approach and operational improvement with the aim to reach EBIT of over 100
million in 2017. 

Arni Oddur Thordarson, CEO:"The fourth quarter was a good quarter for Marel with record revenue and order
intake. In the quarter we saw revenue increase by 19% and order intake by 27%
compared with the same quarter one year ago. 

2014 was a year of progress and transformation for Marel. The year started off
slow but in the spring we changed the game and we have managed to be at the
customer, for the customer, while refocusing our operations.  The sales last
year were a good mix of Greenfields, modernization projects and maintenance
business around the globe.   There is clearly a tailwind in the market,
particularly in the U.S. that fully offsets turbulences in Eastern European
countries and other countries that are dependent on raw material resources. 

The Simpler, Smarter, Faster refocusing program is a two year journey and we
are now entering the second year.   The streamlining of the operation is fully
on track and simultaneously we are investing in future growth through
innovation and general investments to advance the business.  We are moving into
the right direction with operational improvements in the second half of the
year and we enter 2015 with optimism.  The order book is at good level, we are
streamlining towards lower cost base and our aim is to capture good organic
growth and increased profits in 2015 compared with previous year.” 

Simpler, Smarter, Faster refocusing program

Marel's two year refocusing plan is on track and will continue throughout 2015,
after which the focus will be shifted towards full potential with the aim of
reaching over 100 million EBIT in 2017. 

The refocusing plan's objectives are to increase efficiency in order to serve
customers better and reduce the recurring annual cost base by 25 million. Total
estimated cash-out costs related to refocusing actions is 25 million, while the
total P/L effect cannot be fully estimated at this time. Recurring annual cost
savings from actions taken in 2014 is estimated to be approximately 14 million
compared to cash-out costs of approximately 14 million while the one-off costs
through the P/L is 19.6 million. The one-off costs in Q4 amount to 7.6 million,
thereof 6.5 million with cash-out effect. 

Marel is streamlining the general business, optimizing the product portfolio
and manufacturing footprint and at the same time investing in further growth
through innovation and general investments to advance the business.  
Throughout the refocusing program, Marel has managed to be at the customer, for
the customer resulting in increased sales with strong cash flow and net
debt/EBITDA at 2.08 at year-end compared to 3.13 at the end of 2013. 

In addition to one-off cost related to the Simpler, Smarter Faster program
there are non-recurring cost items in sales, general administration and
innovation. 

Refocusing actions taken during 2014:

  --  The consolidation of several different business units in Marel's meat
     segment resulting in better utilization of resources and increased
     synergies in Marel's meat activities.
  --  The transfer of salmon activities from Norresundby to a larger and
     modernized facility in Stovring, Denmark. The transfer was finalized in Q2
     and as of Q3; Marel's salmon operation has been running with increased
     efficiency.
  --  The transfer of Marel's operations from Oss to the multi-industry site in
     Boxmeer was completed before year-end and will return increased synergies
     in innovation and sales going forward.
  --  The ceasing of manufacturing production in Singapore will be finalized
     before mid-year 2015 and will increase operational profit during the second
     half of 2015 and onwards. Marel is entering into partnership to continue to
     provide freezing solutions for integrated solutions to its customers.
  -- The streamlining of Marel's activities in Further Processing.

Further refocusing actions will be taken in 2015. In January, Marel announced
the consolidation of its Des Moines, Iowa manufacturing operation to an
existing facility in Gainesville, Georgia. The aim is to capture synergies and
increase Marel's competitiveness by consolidating its manufacturing platform
into few multi-industrial manufacturing sites. The transition process began in
January 2015, with completion before year-end 2015. 

Employees with long term contracts are approximately 3,800 at year-end 2014
compared to approximately 4,000 at the beginning of the year. To manage
fluctuations in demand, Marel uses temporary manufacturing resources, of which
there are 250 resources at year-end compared with 130 at beginning of the year,
reflecting the increased business activity and order book at a good level. The
ceasing of freezing activities in Singapore and the U.S. manufacturing
consolidation will lead to further reductions of employees as previously
announced. 

Dividend
The Board of Directors will propose to the Annual General Meeting (AGM) on
March 4, 2015 that a dividend of 0.48 euro cents per share be paid for the
operational year 2014. Based on the current number of outstanding shares, the
estimated total dividend payment will be approximately 3.5 million,
corresponding to approximately 30% of  net profit for the year. 
The proposed dividend is in line with Marel's targeted capital allocation and
dividend policy. If approved by Marel's shareholders, the company's shares
traded on and after March 5, 2015 (EX-Date) will be ex-dividend and the right
to a dividend will be constricted to shareholders identified in the company´s
shareholders Registry at the end of March 6, 2015, which is the proposed record
date. The board will propose that payment date of the dividend is March 27,
2015. 

Outlook
With an order book at a good level for the beginning of 2015 and tailwind in
main markets, Marel's management guidance for 2015 is organic revenue growth,
with a solid increase in operational and net profit. Full focus remains on
strengthening the market approach and operational improvement with the aim to
reach EBIT of over 100 million in 2017. 

In the mid- and long-term, the company believes its innovative products and
global presence in all industries will secure good growth and increased
profitability. The long-term outlook in the industry remains favorable and the
estimated market growth for providing advanced solutions and equipment for
meat, poultry and fish processing is 4-6%. Marel's goal is to continue to grow
faster than the market, based on its innovative customer solutions and
extensive sales and service network. 
Results may vary from quarter to quarter due to general economic developments,
fluctuations in orders received, and deliveries of larger systems. 

Presentation of results, February 5, 2015
Marel will present its results at an investor meeting on Thursday, February 5,
at 8:30 am (GMT), at the Company's headquarters at Austurhraun 9, Gardabaer.
The meeting will also be webcast at marel.com/webcast.

Viðhengi:

Announcement_Q4_Full Year_2014_PDF.pdf

Marel Consolidated Financial Statements 2014.pdf

Marel Consolidated Financial Statements 2014.pdf