2017 Annual General Meeting 25 May 2017 2017 Annual General Meeting - PowerPoint PPT Presentation

2017 Annual General Meeting 25 May 2017

2017 Annual General Meeting Forward-Looking Statement Any forward-looking statements made in this presentation have been made in good faith based on the information available as of the date of this presentation and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in these statements, and the company undertakes no obligation to update any such statements whether as a result of new information, future events or otherwise. Total Produce’s Annual Report contains and identifies important factors that could cause these developments or the company’s actual results to differ materially from those expressed or implied in these forward-looking statements. 2

2017 Annual General Meeting Contents 04 14 Financial Highlights 10 Years of Total Produce 05 20 2016 Investments Summary and Outlook 07 24 2017 Investments Contacts 09 2016 Financial Review 3

2017 Annual General Meeting Financial Highlights Adjusted EBITA Adjusted EPS Total Revenue Adjusted EBITDA €3.76 bn €94.8 m €73.7 m 12.07 cent +8.9 % +14.5 % +15.0 % +14.1 % Final Return on Average Net Debt / Adjusted EBITA / Dividend Capital Employed Adjusted EBITDA Net Interest 13.3 times 2.2297 cent 15.9 % 0.51 times +10.0 % 4

2017 Annual General Meeting 2016 Investments In 2016 the  Total 2016 investment of €61m including €17m contingent on the Group further achievement of profit targets expanded its  In February 2016, the Group acquired a 65% interest in Progressive footprint in the Produce headquartered in Los Angeles in California with put and call options in place for the remaining 35% US with the acquisition of a  Annual revenue in excess of US$ 200m and operating from four strategically located distribution centres 65% interest in  Progressive is a grower, packer and distributor of conventional and Progressive organic produce to the retail, wholesale and food service sectors in North America Produce  Specialises in asparagus, potatoes, onions and organics 5

2017 Annual General Meeting 2016 Investments (continued) In addition the Group made a number of other acquisitions in The Group also Holland, Scandinavia, UK and Chile including: made a number  Acquisition of a 60% interest in Organic Trade Company of other strategic Holland BV which specialises in organic fruit and vegetables investments in  Investment in Vezet Convenience Nordic, a 50/50 joint venture Holland, UK, which will invest in a facility for production of fresh cut and pre- Scandinavia and packed meal salads for the Nordic market Chile  Investment in Planet Produce Limited, a UK company specialising in the import of exotic fruit and vegetables  Acquisition in December 2016 of a 50% interest in El Parque, a fresh produce company headquartered in Chile and specialising in avocados, citrus and grapes 6

2017 Annual General Meeting 2017 Investments  Acquisition of a further 30% of the Oppenheimer Group (‘Oppy’) for CAD$39.5m (€28.0m) taking interest to 65%  Concurrent with this transaction, Oppy entered into a series of strategic transactions to enhance its relationship with the New Zealand based T&G Global Limited (‘T&G’):  Oppy acquired 50% of Delica North America Inc. Delica is focused on the export of fresh produce from the US to the Chinese and South East Asian markets  T&G increased its shareholding in Oppy’s US subsidiary from 15% to 39.4%  Oppy secures long term supply of key T&G proprietary varieties of apples and pears 7

2017 Annual General Meeting North America The story so far…. Revenue of US$ 750m Revenue of US$ 60m Revenue of US$ 160m Revenue of US$ 220m Total North America* Revenue of US $1.2 billion * Gross 100% revenue of each Company 8

2016 Financial Review 9

2017 Annual General Meeting Business Overview 2016 2015 Revenue EBITA* Revenue EBITA* €’m €’m €’m €’m 1,753 25.9 1,653 22.1 Europe – Eurozone Europe – Non-Eurozone 1,522 38.8 1,538 38.6 International 544 9.0 321 3.4 (57) - (58) - - Inter-segment revenue 3,762 73.7 3,454 64.1 Revenue and adj. EBITA * Excludes acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration and exceptional items 10

2017 Annual General Meeting Financial Highlights 2016 2015 % change Revenue €3,762m €3,454m +8.9% Adjusted EBITDA 1 €94.8m €82.8m +14.5% Adjusted EBITA 1 €64.1m +15.0% €73.7m Adjusted profit before tax 1 €67.7m €58.0m +16.8% Adjusted fully diluted EPS 1 12.07 cent 10.58 cent +14.1% Total dividend per share 3.0393 cent 2.763 cent +10.0% 1 Excludes acquisition related intangible asset amortisation charges and costs, fair value movements on contingent consideration and exceptional items 11

2017 Annual General Meeting Financials Cash flow statement 2016 2015 €’m €’m Operating cash flows 53.7 45.9 Working capital movements (9.5) 14.9 Operating cash flows after working capital movements 44.2 60.8 Routine capital expenditure (net) (15.3) (18.1) Dividends from joint ventures and associates 8.3 8.1 Dividends to non-controlling interests (6.8) (2.4) Total free cash flow 30.4 48.4 Acquisition expenditure (includes cash/debt acquired) (43.4) (12.0) Contingent/deferred consideration payments (4.8) (12.7) Non-routine capital expenditure/property additions (7.8) (4.2) Cashflows on exceptional items 3.0 3.1 Disposal of trading assets 6.4 – Dividends to shareholders (9.1) (8.3) Buy-back of shares (6.0) (14.4) Other, including translation movements 1.0 (1.2) Movement in the year (30.3) (1.3) Net debt at 1 January (18.1) (16.8) Net debt at 31 December (48.4) (18.1) 12

2017 Annual General Meeting Financials Balance sheet 2016 2015 €’m €’m Tangible assets 153.8 151.7 Intangible assets & goodwill 220.5 190.5 Investments (primarily joint ventures and associates) 76.9 93.5 Working capital & other (21.8) (5.4) Contingent and deferred consideration (46.9) (36.2) Put option liability (21.2) – Pension liability (net of deferred tax) (31.8) (14.5) Corporation and deferred tax (ex. DT on pension) (15.2) (14.7) Net debt (48.4) (18.1) Net Assets 298.9 313.8 Shareholders’ equity 226.3 238.8 Non-controlling interests 72.6 75.0 Shareholders’ Equity & Non-Controlling Interests 298.9 313.8 13

10 Years of Total Produce 14

2017 Annual General Meeting Company Overview NORTH AMERICA EUROPE Number of facilities Number of facilities Cartons sold Operating 106 21 annually Facilities 138 350 m+ Countries Revenue 26 €3.76 bn EBITA EBITDA €74 m €95 m ASIA SOUTH AMERICA Number of facilities Number of facilities 4 7 15

2017 Annual General Meeting 10 Years - Vision and Strategy Our strategy Our vision Deliver long term shareholder value by Leveraging Continued To continue to our collective acquisition and skills at a partnerships develop our position local level as one of the world’s leading fresh produce companies Building Ensuring on our core operational competencies excellence 16

2017 Annual General Meeting 10 Years - Successful Acquisition Strategy United Kingdom Sweden North America • 2016: UK based importer of • 2013 & 2017: Fresh produce • 2016: 50% joint venture Vezet exotic fruits and vegetables company headquartered in Convenience Nordic to invest in 65% (with put/call for 50% remaining interest) Vancouver a facility for fresh cut and pre- • 2013: UK based importer of packed meal salads African sourced exotic vegetables • 2016: Fresh produce company 50% 65% (with put/call for based in Los Angeles • 2012 & 2016: investment in remaining interest) • 2009: Importer and supplier of potato peeling facility exotic fresh produce • 2015: Fresh produce company 100% based in Toronto • 2007: UK fresh produce 50% importer and distributor primarily specialising in stone Netherlands and soft fruits • 2014: Californian based 100% avocado marketer and • 2016: Investment in Organic distributor 45% 60% Trade Company (OTC) Spain • 2009 & 2014: Acquisition of ASF • 2011: Fresh produce importer which specialises in soft fruit South America and distributor 100% 50% • 2012: Fresh produce company • 2016: Chilean fresh produce headquartered in Venlo with company specialising in 50% operations also in Germany and avocado’s, citrus and grapes France 50% Poland • 2015: Brazilian fresh produce • 2012: Acquisition of Indigo • 2008: Fresh produce companies Fruit, a distributor of fresh fruits company specialising in mango 70% who primarily specialise in local 60% and lime Dutch salads 60% 17

2017 Annual General Meeting 10 Years – Growth in Numbers Adjusted EBITDA (€’m) Revenue (€’m) Number of Countries 94.8 26 3,762 52.1 16 1,861 2006 2016 2006 2016 2006 2016 Adjusted EPS (€’cent) Share price (€) Market Capitalisation (€’m) 12.07 1.98 642 5.70 0.76 256 2006 2016 2006 2016 2006 2016 18