Slide 1: For the half year ended 26 March 2021
For the half year ended 26 March 2021
Slide 2: Disclaimer ─ forward looking statements
Disclaimer ─ forward looking statements Certain statements made in this document are forward‐looking. These represent expectations for the Group’s business, and involve known and unknown risks and uncertainties, many of which are beyond the Group’s control. The Group has based these forward‐looking
Slide 3: Today's agenda
Today’s agenda H1 21 Highlights Patrick Coveney, CEO Financial Review Emma Hynes, CFO Operating & Strategic Update Patrick Coveney, CEO Q&A Note: The Group uses Alternative Performance Measures ('APMs') which are non-IFRS measures to monitor the performance of its operations and of the Group as a wh
Slide 4: H1 Highlights
Hi 21 HIGHLIGHTS Greencore® Patrick Coveney, CEO Making every day wheYer
Slide 5: Executive summary
Executive summary Resilient H1 performance • Purposeful management through COVID challenges • Positive at Adjusted Operating Profit level • Reduced debt levels Well positioned for rapid volume-led recovery • Food to go categories rebounding strongly as society reopens • Significant levels of new bus
Slide 6: Underpinned by momentum on sustainability strategy
Underpinned by momentum on sustainability strategy Sourcing with Integrity Making with Care Feeding with Pride • Working with customers to resolve • Developing a fully recyclable • Specific community engagement country-specific sourcing sandwich skillet to offer to plans across key sites challenges
Slide 7: Financial Review
FINANCIAL REVIEW Emma Hynes, CFO Making every day wheYer
Slide 8: H1 financial overview
H1 financial overview Protecting the business in challenging trading conditions • Implemented effective controls on costs during demand volatility • Sustained efficiency programmes where feasible • Prioritised cash • Secured necessary balance sheet strength • Strengthened resources to support the fu
Slide 9: Resilient performance in H1
Resilient performance in H1 21 £m unless otherwise stated H1 21 H1 20 Change Group Revenue 577.1 712.7 -19.0% Pro Forma Revenue Growth (%) -18.6% Adjusted EBITDA 26.5 63.8 -58.5% Adjusted Operating Profit 0.2 38.3 -99.5% Adjusted Operating Margin (%) 0.0% 5.4% -540 bps Adjusted (Loss) / Profit Befor
Slide 10: Revenue impact most marked in Q2
Revenue impact most marked in Q2 Revenue composition Highlights FTG categories Other convenience categories Group • Pro forma revenue -18.6%, impacted by tiered restrictions and lockdowns for most of H1 £256.9m • 25.6% pro forma decline in food H1 21 £237.9m H1 20 to go categories £577.1m £712.7m £3
Slide 11: Resilient profit performance despite weaker revenue profile
Resilient profit performance despite weaker revenue profile Profit performance Highlights £m H1 20 H1 21 80 • Incurred approximately £4.8m of 60 -99.5% COVID-19 related operating costs 40 63.8 • Significant profit reduction in food 20 26.5 38.3 0 0.2 to go categories as demand declined with COVID-19
Slide 12: H1 P&L: other financial items
H1 21 P&L: other financial items Highlights £m H1 21 H1 20 Net finance costs (9.7) (8.7) • Net bank interest payable broadly unchanged, but cash interest Tax (before exceptional items) 2.0 (3.5) increased Group exceptional items (after tax) 9.9 0.4 • Effective tax rate increased to 18% • Net excepti
Slide 13: Free Cash Flow neutral in H1, excluding working capital movements
Free Cash Flow neutral in H1, excluding working capital movements £m 30 26.5 25 20 15 10 5 -21.1 0 -5 -7.9 -2.4 -10 -15 -9.2 -20 -3.0 1.4 -25 -23.6 -7.9 -30 Adjusted Net Working Maintenance Exceptional Interest & Tax Pension Leases Other Free Cash Flow EBITDA Capital Capex Cashflows H1 FY21 RESULTS
Slide 14: Significant reduction in Net Debt
Significant reduction in Net Debt 0 -100 -200 16.3 8.0 87.1 -271.3 -300 -350 -350.5 -23.6 -8.6 -400 £m Net Debt FY20* Free Cash Flow Strategic Capex Equity M&A FX/Other Net Debt H1 21* *Note: Net Debt shown excludes leases of £60.7m in FY20 and £60.8m in H1 21 H1 FY21 RESULTS | MAY 2021 14
Slide 15: Liquidity strengthened in H1
Liquidity strengthened in H1 Debt profile • Balance sheet strengthened through effective cash and capital management in H1 £m 600 571 • Secured further support from bank lending syndicate and Private Placement Note holders in November 2020 500 • Successfully completed equity placing in November 400
Slide 16: Operating & Strategic Update
aul OPERATING & STRATEGIC UPDATE Patrick Coveney, CFO Making every day mheYos s =
Slide 17: Delivered against three COVID-19 priorities
Delivered against three COVID-19 priorities Keeping our people safe Feeding the UK Protecting our business • Further enhanced safety measures • Range and service levels matched to • Business model and cost base reset volatile demand to changing demand levels • Rolled out comprehensive COVID testing
Slide 18: FTG market is rebounding strongly...
FTG market is rebounding strongly... Social distancing FTG volumes1 Transit index2 25.0 imposed 140.0 (2/3/20) National Second phase Tiered local reopening Lockdown restrictions roadmap 120.0 (23/3/20) (14/10/20) Third (12/4/21) 20.0 Education lockdown Second (6/1/21) returns First phase Retail lock
Slide 19: …with Greencore FTG revenues building through Q3…
…with Greencore FTG revenues building through Q3… 100% Pre-COVID levels 1 Versus FY19: Versus FY20: March 2021: –29% March 2021: –19% April 2021: -16% April 2021: +129% May 2021 2 : -11% May 2021 2 : +115% Q2 Q3 Q4 Q1 Q2 Q3 20 20 20 21 21 21 0% Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21
Slide 20: …and a pathway now for full FTG rebound
…and a pathway now for full FTG rebound Consumer insight gives cause for optimism Total FTG market projections1 (indexed FY19=100) • FTG penetration increasing rapidly since mid March • Sandwiches still the most popular lunch format 110 105 • Channel shifts to suburban formats 105 103 100 100 Struct
Slide 21: Partnering with key customers to secure recovery
Partnering with key customers to secure recovery Intensive collaboration and support in H1 • Managing range and service against demand volatility • Focus now on in-store activation with existing customers - selective shelf space additions, promotional initiatives, fixture investment • Onboarding new
Slide 22: Augmenting with secured new business
Augmenting with secured new business New channels & Core business New categories customers @Michael: @Michael: New image @Michael: New image New image • Salads • Salads • Coffee shop • Ready meals • Plant based • New convenience • Premium sandwich ranges • Meal kits • Foodservice • Sushi • Hot sandw
Slide 23: Evolving the economic model
Evolving the economic model Well positioned for strong volume-led …and re-establishing FY21 guidance recovery… • Rebounding FTG market with clear pathway to full • Improving revenue trend since March and very recovery encouraging revenue momentum in early H2 • Relative strengthening of retail FTG ch
Slide 24: Q&A
Q&A
Slide 25: Supplementary financial information
Supplementary financial information
Slide 26: H1 21 cashflow
H1 21 cashflow £m H1 21 H1 20 Opening Net Debt (excluding lease liabilities) 350.5 288.5 Adjusted EBITDA 26.5 63.8 Working capital (21.1) (21.8) Maintenance capex (7.9) (11.2) Exceptional cashflows (2.4) (2.6) Interest/tax (9.2) (11.7) Pension (3.0) (7.8) Leases (7.9) (4.9) Other 1.4 (1.2) Free Cash
Slide 27: H1 21 balance sheet highlights
H1 21 balance sheet highlights £m H1 21 H1 20 Net Debt 332.1 374.4 Net Debt (excluding lease liabilities) 271.3 311.1 Net Debt: EBITDA (x)1 7.2 2.1 Pension deficit (net of deferred tax) 55.7 39.2 Average Invested Capital 758.6 695.9 ROIC (%) (0.6) 12.3 1 as measured under financing agreements H1 FY2
Slide 28: Definitions of APMs
Definitions of APMs The Group uses the following Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole Pro Forma Revenue Growth Adjusted Earnings and Adjusted Earnings Per Share (‘EPS’) Pro Forma Revenue Growth
Slide 29: Definitions of APMs (continued)
Definitions of APMs (continued) Capital Expenditure Net Debt and Net Debt Excluding Lease Liabilities The Group defines Maintenance Capital Expenditure as the expenditure Net Debt comprises current and non–current borrowings less net cash and cash required for the purpose of sustaining the operating
Slide 30: IR Calendar & Contacts
IR CALENDAR & CONTACTS Jack Gorman Q3 Trading Update 27 July 2021 Head of Investor Relations FY21 Period End 24 September 2021 investor.relations@greencore.com FY21 Results 30 November 2021 +353 1 605 1000 H1 FY21 RESULTS | MAY 2021 30