Boparan Holdings Q1 Results for the 13 weeks ended 28 October 2017 - - PowerPoint PPT Presentation

BONDHOLDER UPDATE

Boparan Holdings

Q1 Results for the 13 weeks ended 28 October 2017

6th December 2017 Charles Allen, Chairman Ranjit Singh, CEO Richard Pike, CFO

This presentation is for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither Boparan Holdings Limited (the “Company”), its subsidiaries (together, the “Group”) nor any of the Group’s directors, officers, employees, agents or advisers makes any representation or warranty in respect of the fairness, accuracy or completeness of the information or

• pinions contained in this presentation and no responsibility or liability will be accepted in connection with the
• same. The information contained herein is provided as at the date of this presentation and is subject to

updating, completion, revision, verification and further amendment without notice. This presentation contains forward-looking statements in relation to the Group. By its very nature, forward- looking information requires the Company to make assumptions that may not materialise or that may not be

• accurate. Forward-looking statements involve known and unknown risks, uncertainties and other important

factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation should be construed as a profit

• forecast. Past performance cannot be relied on as a guide to future performance.

Headlines

Maintaining strong sales growth; further commodity inflation challenges

Continued commodity inflation Overall sales up 3.8% to £849.0m; LFL sales up 3.1% Site D production suspension impacting Q1 results Operating Profit £8.4m

Building a Better Business

Laying strong foundations for organic growth

• Good sales growth
• EBITDA decline

Q1 – THE FACTS

• Timing of inflation recovery
• Site D production suspension hits quarter results

FACTORS AFFECTING PERFORMANCE

• Driving core business
• Cultural change journey

WHAT WE ARE DOING

Financial overview

Q1 results:

• Good revenue growth
• EBITDA impacted by commodity inflation and Site D suspension
• Cashflow impacted by lower EBITDA
• Net Debt increased

1. LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. 2. EBITDA excludes pension scheme admin expenses of £0.7m (Q1 2016-17: £0.7m).

Q1 2017-18 Q1 2016-17 Y-o-Y Variance Revenue: Like-for-like (£m)1 849.0 823.3 3.1% Revenue (£m) 849.0 818.3 3.8% EBITDA: Like-for-like (£m)1,2 32.9 43.2 (23.8)% EBITDA margin: Like-for-like (%)1,2 3.9% 5.2% (130)bps EBITDA (£m)2 32.9 42.8 (23.1)% Cash flow from operations (£m) 7.1 16.0 (8.9) Net Debt (£m) 823.6 777.6 46.0 LTM EBITDA (£m)2 151.3 183.4 (32.1) Net debt to EBITDA ratio2 5.44 x 4.24 x 1.20 x

Cashflow

• Seasonal working

capital outflow

• Normal quarterly

pension contribution

• Minimal exceptionals
• Bi-annual interest

instalment

• Tightly controlled

capex Q1 2017/18 Cashflow

Protein performance

• Like-for-like sales up 3.7% driven by

volume

• EBITDA down by £3.5m versus last

year

• £5m impact of Site D suspension

Protein – UK and European Poultry & Red Meat

1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. .

Year on year Q1 2017-18 Q1 2016-17 Y-o-Y Variance Revenue: Like-for-like (£m)1 578.8 558.4 3.7% Revenue (£m) 578.8 554.1 4.5% EBITDA: Like-for-like (£m)1 12.6 16.3 (22.7)% EBITDA margin: Like-for-like (%)1 2.2% 2.9% (70)bps EBITDA (£m) 12.6 16.1 (21.7)%

Chilled performance

• LFL Revenue reflecting contract losses
• Commodity inflation
• Tight cost management

Chilled – Meal Solutions

1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. . 2 EBITDA excludes pension scheme admin expenses £0.3m (Q1 2016-17: £0.3m).

Year on year Q1 2017-18 Q1 2016-17 Y-o-Y Variance Revenue: Like-for-like (£m)1 151.7 156.8 (3.3)% Revenue (£m) 151.7 156.7 (3.2)% EBITDA: Like-for-like (£m)1,2 9.2 10.4 (11.5)% EBITDA margin: Like-for-like (%)1,2 6.1% 6.6% (50)bps EBITDA (£m)2 9.2 10.4 (11.5)%

Branded performance

• Early Christmas sales driving top line
• Increased cost of key commodities

Branded – Frozen & Biscuits Year on year Q1 2017-18 Q1 2016-17 Y-o-Y Variance Revenue: Like-for-like (£m)1 118.5 108.1 9.6% Revenue (£m) 118.5 107.5 10.2% EBITDA: Like-for-like (£m)1,2 11.1 16.5 (32.7)% EBITDA margin: Like-for-like (%)1,2 9.4% 15.3% (590)bps EBITDA (£m)2 11.1 16.3 (31.9)%

1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. 2 EBITDA excludes pension scheme admin expenses £0.4m (Q1 2016-17: £0.4m).

Summary

As predicted, headwinds affected business Strong sales performance Solid business at our foundations Gradual turnaround; progress expected throughout the financial year Commitment to quality and safety