Strategy

Based on a strategy of diversification in both production areas and geographic markets, FirstFarms acquires agricultural establishments and land in Eastern Europe. Operation of these shall be optimised, to enable future production of agricultural produce that is competitive in price and quality and that can contribute to accommodating the local increasing purchasing power and demand in Eastern Europe. FirstFarms' investments are based on long-term and active ownership.

Investment strategy

FirstFarms considers that there is currently, and will be for a number of years into the future, good potential to acquire farming companies and land in Eastern Europe with a satisfactory balance between dividend and risk. In connection with its investments, FirstFarms will:

• Acquire capital share and invest equity capital in agricultural companies and land, i.e. in connection with merger or establishment of joint ventures.
• Invest further shareholders' capital and subordinated loan capital in the consolidation, structuring, operation and development of the individual farming companies.
• Assist with the acquisition of external capital from external credit institutes for financing.
• Supplement and/or renew the management in the subsidiary companies and continue to complement these.
• Realise capital gains in connection with partial or total exit from portfolio investments.

Investment criteria

• FirstFarms invests in agriculture and land in Eastern European EU countries.
• FirstFarms invests in both worn-down and modern agriculture companies when it is evaluated, that FirstFarms can run an effective primary production in the company taken over.
• FirstFarms is a primary producer and may therefore run different kinds of primary production, including milk-, cattle- and pig production.
• FirstFarms acquires and operates land in Eastern Europe and may in that connection establish either vegetable and animal production or both.
• FirstFarms carries out investments alone or in conjunction with local partners or other financial partners.
• FirstFarms tries to diversify its agricultural portfolio on different product areas in different countries to spread the risk in the company.
• FirstFarms is a primary producer but in some cases it may be necessary, due to competitive or sales reasons, to include the next link in the supply chain.