Boparan Holdings Q4 and full-year Results for the 13 and 52 weeks - PowerPoint PPT Presentation

BONDHOLDER UPDATE Boparan Holdings Q4 and full-year Results for the 13 and 52 weeks ended 30 th July 2016 3 rd November 2016 Charles Allen, Chairman Ranjit Singh, CEO Steve Leadbeater, CFO

Headlines Q4 builds on previous quarters; strategy working Encouraging progress continues in fourth quarter Total revenue up 2.4% to £775m; LFL operating profit up 34.6% to £25.3m Productivity and efficiency gains following targeted investment programmes Better Before Bigger strategy working

Better Before Bigger – divisional overview Building a better, stronger business; focusing on profitable top line growth • Improvement in sales and profit PROTEIN • Strengthening customer relationships • New customers for Red Meat • Turnaround of division CHILLED • Strategic investments create strong platform for growth • New major contract for breaded fish • Margin and profit improvement BRANDED • Gains in market share • New contracts for Frozen

Better Before Bigger Building a better, stronger business; focusing on profitable top line growth • Major £150m investment programme in UK poultry business continues INVESTMENT • Added Value site in Derby now fully operational • Continuing investment in Chilled • Oriental foods hub at Rogerstone site INNOVATION • New product launches in Branded and Chilled • Red Meat wins multiple awards • Streamlined production, logistics and supply chain for UK poultry EFFICIENCY • De-centralised structures, more autonomy for sites • Continue to look at central cost reduction

Financial overview Y-o-Y Q4-on-Q3 Q4 2015 4 Q4 2016 Q3 2016 Variance Variance Revenue: Like-for-like (£m) 1 763.0 756.8 0.8% 775.9 (1.7)% Revenue (£m) 775.0 756.8 2.4% 784.5 (1.2)% EBITDA: Like-for-like (£m) 1,2 50.5 44.3 14.0% 43.6 15.8% EBITDA margin: Like-for-like (%) 2 6.6% 5.9% 70bps 5.6% 100bps EBITDA (£m) 2 51.8 44.3 16.9% 44.3 16.9% Cash flow from operations (£m) 52.3 46.2 6.1 34.2 18.1 Net Debt (£m) 706.4 716.6 (10.2) 711.0 (4.6) LTM Adjusted EBITDA (£m) 2,3 180.7 160.9 19.8 176.1 4.6 Net debt to Adj. EBITDA ratio 2,3 3.91 x 4.45 x 0.54 x 4.04 x 0.13 x Q4 results: • Continued improvement across the Group • Total Sales up 2.4%, LFL up 0.8% • LFL EBITDA up 14.0% to £50.5m • EBITDA margin improved by 70bp to 6.6% • Leverage ratio reduced to 3.9x 1. LFL CY Revenue & EBITDA adjusted for the impact of exchange rate movements year on year. 2. EBITDA excludes pension scheme admin expenses of £4.0m (2015: £3.3m) 5 3. PY Adjusted EBITDA = LFL EBITDA before the impact of £17.4m of costs incurred in Q2 14-15 relating to Avian influenza and IT system issues. 4. The comparative Q4 2015 results have been restated to take into account the adoption of FRS 102 during the year. The effect of adopting FRS102 on Q4 2015 results was to reduce EBITDA by £0.8m..

Revenue analysis Q4 2016 Revenue analysis • Overall sales Growth of 2.4% • Exchange rate moves account for 1.6% giving underlying Growth of 0.8% • Deflation, largely in Protein division impacted the business by 1.1% • Major wins and losses improved the underlying position by 0.9% • Underlying organic Growth improved the position by 1.0%

Cashflow Q4 2016 Cashflow £m • Positive Cash Flow in the Quarter • Working Capital improved in the 70 period 9.5 60 • Quarterly payment of Pension Liabilities in line with the agreed 51.8 (4.7) recovery plan. (43.0) 50 (4.4) (3.7) • Exceptionals in the period relate to restructuring costs 40 • Capital represents a catch up from earlier periods of the Poultry 30 change plan in Ready to Cook and Added Value as well as the 20 investment in Meal Solutions 10 (1.1) 4.4 0 EBITDA Working capital Pensions Exceptionals Interest and tax Capex (net) Finance Cash inflow Q4 Q4 2015-16 movement paid leases 2015-16 (net outflow)

Protein performance Protein – UK and European Poultry & Red Meat Y-o-Y Q4 2015 2 Year on year Q4 2016 Variance • Overall growth of 0.8% Revenue: Like-for-like (£m) 1 531.5 537.6 (1.1)% • LFL revenue down 1.1%: Revenue (£m) 542.0 537.6 0.8% - Deflation (0.8%) EBITDA: Like-for-like (£m) 1 20.5 20.0 2.5% - Volume (0.3%) EBITDA margin: Like-for-like (%) 1,2 3.9% 3.7% 20bps EBITDA (£m) 21.1 20.0 5.5% • LFL EBITDA £20.5m • Margin has improved from Q3 3.4% to 3.9% which is also 20bps up year on year 1 CY At constant currency 2 The comparative Q4 2015 results have been restated to take into account the adoption of FRS102 during the year. The effect of adopting FRS102 on Q4 2015 results was to reduce EBITDA in the Protein division by £0.5m.

Chilled performance Chilled – Food To Go & Bakery; Meal Solutions Y-o-Y Q4 2015 3 Year on year Q4 2016 • Turnaround strategy now fully Variance delivering Revenue: Like-for-like (£m) 1 140.4 130.9 7.3% Revenue (£m) 140.3 130.9 7.2% • Like for Like revenue growth of 7.3% EBITDA: Like-for-like (£m) 1,2 13.0 9.1 42.9% • Strong like for like EBITDA growth of EBITDA margin: Like-for-like (%) 1,2 9.3% 7.0% 230bps 42.3% to £13.0m EBITDA (£m) 2 13.0 9.1 42.9% • Margin improvement of 230bps ‘v’ Q4 last year to 9.3% 1 CY At constant currency 2 EBITDA excludes pension scheme admin expenses of £1.7m (2015: £1.4m) 3 The comparative Q4 2015 results have been restated to take into account the adoption of FRS102 during the year. The effect of adopting FRS102 on Q4 2015 results was to reduce EBITDA in the Chilled division by £0.2m

Branded performance Branded – Frozen & Biscuits Y-o-Y • Like for Like revenue Growth of 3.2% Q4 2015 3 Year on year Q4 2016 Variance • Like for Like EBITDA up 11.8% to Revenue: Like-for-like (£m) 1 91.1 88.3 3.2% £17.0m Revenue (£m) 92.7 88.3 5.0% • Strong like for like margin growth to EBITDA: Like-for-like (£m) 1,2 17.0 15.2 11.8% 18.7% EBITDA margin: Like-for-like (%) 1,2 18.7% 17.2% 150bps EBITDA (£m) 2 17.7 15.2 16.4% 1 CY At constant currency 2 EBITDA excludes pension scheme admin expenses of £2.3m (2015: £1.9m) 3 The comparative Q4 2015 results have been restated to take into account the adoption of FRS102 during the year. The effect of adopting FRS102 on Q4 2015 results was to reduce EBITDA in the Branded division by £0.1m

Summary Better Before Bigger strategy working Third consecutive quarter of encouraging results Investment and innovation driving improvements Well-placed as we head into new financial year

Appendix I – Full Year 15-16 Performance 2015-16 Full Year Group Financial Performance 2015 3 Full year 2016 Y-o-Y Variance Revenue: Like-for-like (£m) 1 3,126.9 3,140.2 (0.4)% Revenue (£m) 3,129.8 3,140.2 (0.3)% EBITDA: Like-for-like (£m) 1,2 180.7 143.5 25.9% EBITDA margin: Like-for-like (%) 1,2 5.8% 4.6% 120bps EBITDA (£m) 2 181.0 143.5 26.1% Cash flow from operations (£m) 181.2 78.7 102.5 Net Debt (£m) 706.4 716.6 (10.2) 2015-16 by quarter Q1 Q2 Q3 Q4 YTD Revenue: Like-for-like (£m) 1 787.9 800.1 775.9 763.0 3,126.9 Revenue (£m) 778.3 792.0 784.5 775.0 3,129.8 EBITDA: Like-for-like (£m) 1,2 41.2 45.4 43.6 50.5 180.7 EBITDA margin: Like-for-like (%) 1,2 5.2% 5.7% 5.6% 6.6% 5.8% EBITDA (£m) 2 40.4 44.5 44.3 51.8 181.0 1. LFL CY Revenue & EBITDA adjusted for the impact of exchange rate movements year on year. 2. EBITDA excludes pension scheme admin expenses of £4.0m (2015: £3.3m). 3. Comparative FY 2015 results have been restated to take into account the adoption of FRS 102 during the year. The effect of adopting FRS102 on FY 2015 results was to reduce EBITDA by £0.8m.

Appendix II – Protein Full Year Performance 2015-16 Protein Y-o-Y 2015 2 Full year 2016 Variance Revenue: Like-for-like (£m) 1 2,134.1 2,167.5 (1.5)% Revenue (£m) 2,136.6 2,167.5 (1.4)% EBITDA: Like-for-like (£m) 1 73.9 63.0 17.3% EBITDA (£m) 74.0 63.0 17.5% 2015-16 by quarter Q1 Q2 Q3 Q4 Revenue: Like-for-like (£m) 1 538.6 530.7 533.3 531.5 Revenue (£m) 530.2 523.6 540.8 542.0 EBITDA: Like-for-like (£m) 1 18.4 16.9 18.1 20.5 EBITDA margin: Like-for-like (%) 1 3.4% 3.2% 3.4% 3.9% EBITDA (£m) 18.0 16.5 18.4 21.1 1. At constant currency 2. Comparative FY 2015 results have been restated to take into account the adoption of FRS 102 during the year. The effect of adopting FRS102 on FY 2015 Protein results was to reduce EBITDA by £0.5m

Appendix III – Chilled Full Year Performance 2015-16 Chilled Y-o-Y 2015 3 Full year 2016 Variance Revenue: Like-for-like (£m) 1 602.8 596.5 1.1% Revenue (£m) 602.8 596.5 1.1% EBITDA: Like-for-like (£m) 1,2 42.7 36.4 17.3% EBITDA (£m) 2 42.7 36.4 17.3% 2015-16 by quarter Q1 Q2 Q3 Q4 Revenue: Like-for-like (£m) 1 148.0 165.7 148.7 140.4 Revenue (£m) 148.0 165.7 148.8 140.3 EBITDA: Like-for-like (£m) 1,2 8.3 11.3 10.1 13.0 EBITDA margin: Like-for-like (%) 1,2 5.6% 6.8% 6.8% 9.3% EBITDA (£m) 2 8.3 11.3 10.1 13.0 1. At constant currency 2. EBITDA excludes pension scheme admin expenses of £1.7m (2015: £1.4m) 3. Comparative FY 2015 results have been restated to take into account the adoption of FRS 102 during the year. The effect of adopting FRS102 on FY 2015 Chilled results was to reduce EBITDA by £0.2m