MYKOGEN A transformational move ANALYST PRESENTATION - - PowerPoint PPT Presentation

MYKOGEN – A transformational move

ANALYST PRESENTATION Sint-Katelijne-Waver – June 14, 2017

Content

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Setting the scene - Product Setting the scene - Markets Mykogen in a nutshell Production facilities Attractive market trends Transaction rationale Transaction details

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Substrates Production Processing Distribution Customer

 Greenhouse vegetables  Berries  Flowers & plants Mushrooms  Urban green

Raw materials

Mykogen

Greenyard Horticulture capability

Casing soil P3 Substrate

 Fresh  Prepared  Frozen

Setting the scene – Product: A milestone to be active in most parts of the value chain

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Setting the scene – Markets: Strong trends to support future growth of the business

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30% 32% 35% 38% 41% 42% 42% 26% 29% 26% 24% 22% 16% 14% 45% 39% 39% 38% 38% 42% 43%

2008 2009 2010 2011 2012 2013 2014 Poland Netherlands Other countries

Global Exports of Fresh Mushrooms

Production shift West  East Increasing exports East  West

Mykogen key markets Greenyard key markets Mykogen & Greenyard key markets

65% 56% 53% 51% 46% 42% 41% 14% 23% 27% 29% 36% 38% 38% 3% 3% 4% 3% 4% 6% 7% 19% 18% 16% 17% 14% 14% 15%

2008 2009 2010 2011 2012 2013 2014 China Netherlands Poland Other countries

Global Exports of Processed Mushrooms

12% CAGR 4% CAGR

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Mykogen in a nutshell – Leading player in attractive mushroom substrates segment

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• 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

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Production facilities –State-of-the-art sites, ideally located – also for sourcing

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Warsaw Poznan Cracow Gdansk Kiev Odessa Dnipro Lviv

Karszew

Established in 1978 P3 built in 2004 Expanded in 2013-2014

Wola Makowska

Established in 1991 P3 built in 2006 Acquired by Mykogen in early 2016

Villya

Established and built in 2008 Started production in 2009 Largest manufacturer of phase II in Ukraine with 50%-60% market share

Uman

Established and built in 2016 Operational since Q4 2016 Full-scale production since 2017 Potential to expand from current 6 up to 20 tunnels

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Attractive market trends – Mykogen benefits from strong underlying growth trends

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Key drivers for future growth :

• Ongoing shift to East of Europe for handpicked

mushroom production

• Attractive market for production (e.g. labour and

sourcing of raw materials)

• Increasing demand for mushrooms (meat replacement)

Poland

• Poland became Europe’s largest mushroom production

country; Globally they are n°3

• Polish market witnessed a strong CAGR of 7.6% since ’08
• Exports grew by double digit in recent years

Ukraine

• Ukraine still in early stage but offers strong competitive

advantages for Mykogen

204 69 40 34 27 21 9 8 3 3

Top Fresh White Mushroom Exporters in Europe (in kt)

50 100 150 200 250 300 350 400 2008 2009 2010 2011 2012 2013 2014 2015

Polish white mushroom production (in kt)

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Transaction rationale– Horticulture to become a key part of Greenyard

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55% 38% 7%

FY 16/17

Fresh Long Fresh Horticulture 49% 36% 15%

Pro Forma

Fresh Long Fresh Horticulture

 Transformational step for Horticulture, positioning it for further strategic development in the future  Addition of a high quality, market leading player in its segment  Entry into the attractive mushroom substrate business enhances Greenyard’s overall growth profile and profitability  Greenyard strengthens its connection to the grower base and position across the value chain  Addition of experienced management team  Unlocks synergies Group wide (cross-segmental synergies with Fresh, Frozen and Prepared (Lutèce) )  Sound balance sheet – strong financial ratios post transaction

EBITDA distribution

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Transaction details – Main effects of this transformational deal

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• 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

Q&A