MYKOGEN – A transformational move ANALYST PRESENTATION Sint-Katelijne-Waver – June 14, 2017
Content 1 Setting the scene - Product 2 Setting the scene - Markets 3 Mykogen in a nutshell 4 Production facilities 5 Attractive market trends 6 Transaction rationale 7 Transaction details 2
Setting the scene – Product: A milestone to be active in most parts of the value chain 1 Fresh Prepared Frozen Raw materials Substrates Production Processing Distribution Customer Greenhouse vegetables Berries Greenyard Horticulture capability Casing soil Flowers & plants Mykogen P3 Substrate Mushrooms Urban green 3
Setting the scene – Markets: Strong trends to support future growth of the business 2 Production shift Mykogen key markets Global Exports of Fresh Mushrooms West East Greenyard key markets 38% 38% 39% 39% 42% 45% 43% 12% 22% CAGR Mykogen & 24% 16% 14% 26% 29% 26% Greenyard key markets 42% 42% 41% 38% 35% 32% 30% 2008 2009 2010 2011 2012 2013 2014 Poland Netherlands Other countries Global Exports of Processed Mushrooms 14% 14% 15% 18% 16% 17% 19% 4% 4% 6% 7% 4% 3% 3% 3% CAGR 14% 23% 27% 29% 36% 38% 38% Increasing exports East West 65% 56% 53% 51% 46% 42% 41% 2008 2009 2010 2011 2012 2013 2014 China Netherlands Poland Other countries 4
Mykogen in a nutshell – Leading player in attractive mushroom substrates segment 3 • Leading player with top quality mushroom growing media in the key mushroom market in Europe • Family owned company founded in 1978, acquired by Abris Private Equity in 2012 • Acquired Fungis in April 2016 after which Mykogen became joint market leader in Poland • 2016 sales & EBITDA of € 37m & € 13,5 with a sales CAGR of 8% in the last 4 years • Active in Poland (22% market share) & Ukraine (>50% market share) • Headquartered in Karszew, Poland with 4 production facilities in Poland and Ukraine • > 300 employees • Experienced management team with impressive track record 5
4 Production facilities – State-of-the-art sites, ideally located – also for sourcing Karszew Gdansk Established in 1978 P3 built in 2004 Warsaw Poznan Expanded in 2013-2014 Kiev Wola Makowska Cracow Dnipro Lviv Established in 1991 P3 built in 2006 Odessa Acquired by Mykogen in early 2016 Villya Uman Established and built in 2008 Started production in 2009 Established and built in 2016 Largest manufacturer of Operational since Q4 2016 phase II in Ukraine with Full-scale production since 2017 50%-60% market share Potential to expand from current 6 up to 20 tunnels 6
Attractive market trends – Mykogen benefits from strong underlying growth trends 5 Polish white mushroom production (in kt) 400 Key drivers for future growth : 350 300 • Ongoing shift to East of Europe for handpicked 250 mushroom production 200 • Attractive market for production (e.g. labour and 150 sourcing of raw materials) 100 • 50 Increasing demand for mushrooms (meat replacement) 0 2008 2009 2010 2011 2012 2013 2014 2015 Poland Top Fresh White Mushroom Exporters in Europe (in kt) • Poland became Europe’s largest mushroom production 204 country; Globally they are n°3 • Polish market witnessed a strong CAGR of 7.6% since ’08 69 40 34 27 21 • 9 8 Exports grew by double digit in recent years 3 3 Ukraine • Ukraine still in early stage but offers strong competitive advantages for Mykogen 7
Transaction rationale – Horticulture to become a key part of Greenyard 6 EBITDA distribution Transformational step for Horticulture, positioning it for further strategic development in the future FY 16/17 Pro Forma Fresh Fresh Addition of a high quality, market leading player in its segment Long Fresh Long Fresh Horticulture 7% Horticulture 15% Entry into the attractive mushroom substrate business enhances Greenyard’s overall growth profile and profitability 49% Greenyard strengthens its connection to the grower base and position across the value chain 55% 38% Addition of experienced management team 36% Unlocks synergies Group wide (cross-segmental synergies with Fresh, Frozen and Prepared (Lutèce) ) Sound balance sheet – strong financial ratios post transaction 8
Transaction details – Main effects of this transformational deal 7 • Purchase price of € 93m (Enterprise Value) • Implied multiple of 6,9x EV/EBITDA (2016a) • Financing from existing credit facilities • Combined with divestments, net debt/EBITDA will increase by a limited 0.3x to 2.5x (FY 2016/2017 pro-forma) • The acquisition will be immediately accretive to earnings: Adjusted EPS 16/17 would increase by more than 25% • Completion of the transaction, expected in H2 2017, is subject to the receipt of customary regulatory approvals • Enhancing impact on Greenyard’s overall EBITDA margin (increases from 3,4% to 3,7%) • Horticulture to represent ~15% of Group EBITDA after the transaction 9
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