Slide 1: Preliminary Results Year Ended 30 June 2024
Pioneering animal genetic improvement to sustainably nourish the world Preliminary Results Year Ended 30 June 2024 Structurally strengthening Genus in a challenging year
Slide 2: Disclaimer
Preliminary Results: Year Ended 30 June 2024 Disclaimer This presentation has been prepared by Genus plc (“Genus” or the part of the issuer to provide the recipient access to any “the Company”) and has not been independently verified. Genus additional information or to update this presentation or an
Slide 3: Overview & Headlines
Pioneering animal genetic improvement to sustainably nourish the world Overview & Headlines Jorgen Kokke Chief Executive Officer
Slide 4: CEO Overview
Preliminary Results: Year Ended 30 June 2024 CEO Overview Challenging markets in FY24, accelerating delivery of our strategic priorities Continued growth in Deliver successful Drive greater value porcine, with more stable commercialisation of our from bovine growth in China PRP gene edit • US FDA: C
Slide 5: FY24 Headlines
Preliminary Results: Year Ended 30 June 2024 FY24 Headlines Financial performance1 Revenue Adj. operating profit including JVs £ 668.8m (-3%) £78.1m (-9%) Adj. profit before tax Recommended full year dividend maintained £59.8m (-16%) 32p per share 5 1. Growth rates based on actual currency
Slide 6: Our Markets - Porcine
Preliminary Results: Year Ended 30 June 2024 Our Markets - Porcine 1H FY25 Porcine Market Customer landscape (FY24) Our business (FY24) Outlook • Significant industry losses in the first half • PIC North America performed robustly in FY24 • • Stable, but NORTH AMERICA Higher pork prices and lower fe
Slide 7: Our Markets - Bovine
Preliminary Results: Year Ended 30 June 2024 Our Markets - Bovine 1H FY25 Bovine Market Customer landscape (FY24) Our business (FY24) Outlook • Lower milk production as well as improved herd fertility drove • ABS North America performed well in the period Stable with • milk price NORTH AMERICA lower
Slide 8: Sustainability
Preliminary Results: Year Ended 30 June 2024 Sustainability Demonstrating assured and quantifiable sustainability benefits Genetics is a sustainability opportunity PIC genetics deliver certified & quantifiable benefits “ The livestock sectors require intensified productivity via improved genetics an
Slide 9: Financial Results
Pioneering animal genetic improvement to sustainably nourish the world Financial Results Alison Henriksen Chief Financial Officer
Slide 10: Volume Growth
Preliminary Results: Year Ended 30 June 2024 Volume Growth Lower bovine volumes reflects weakness for producers in several markets Genus PIC – volume growth (%) Genus ABS – volume growth (%) Excluding China FY20 FY21 FY22 FY23 FY24 6% 5% 8% 6% 3% 13% 11% 8% 15% 8% 6% 6% 5% 5% 3% 3% 3% -6% 0% FY20 FY
Slide 11: Genus Adjusted Profit Performance
Preliminary Results: Year Ended 30 June 2024 Genus Adjusted Profit Performance £M FY24 FY23 % Change % Change Genus adjusted operating profit2 £m actual actual actual constant1 Actual currency 89.8 85.8 Genus PIC 103.6 108.7 (5)% (2)% 77.7 9.4 78.1 70.8 5.6 3.8 33.4 Genus ABS 14.0 18.7 (25)% (3)% 13
Slide 12: Drivers of Adjusted Profit Performance
Preliminary Results: Year Ended 30 June 2024 Drivers of Adjusted Profit Performance Adjusted profit before tax bridge1 (£m) Genus ex-China Trading • Genus ex-China grew adjusted EBITDA by £10.3m or 12% year on year2 China Trading • China trading has been challenging for both PIC and ABS; PIC China E
Slide 13: Genus PIC
Preliminary Results: Year Ended 30 June 2024 Genus PIC Adjusted operating profit1 results Full year adjusted operating profit bridge1,2 (£m) FY24 FY23 % Change actual actual Actual Constant £m £m Currency Currency Revenue 352.5 368.1 (4)% (1)% Adjusted operating profit1 103.6 108.7 (5)% (2)% Adjuste
Slide 14: Genus PIC
Preliminary Results: Year Ended 30 June 2024 Genus PIC Adjusted operating profit1 Latin America Royalty revenue • -2%, +4% ex. China Royalty revenue growth of +6% +3% +4% , +5% ex. China • Volume growth of +4% • Argentina hyper-inflation impacted -5% in actual currency Agroceres JV profit by -£1.3m
Slide 15: Genus ABS
Preliminary Results: Year Ended 30 June 2024 Genus ABS Adjusted operating profit results Full year adjusted operating profit bridge 1 (£m) FY24 FY23 % Change actual actual Actual Constant £m £m Currency Currency Revenue 314.9 321.6 (2)% 4% Adjusted operating profit 14.0 18.7 (25)% (3)% • Tough marke
Slide 16: Genus ABS
Preliminary Results: Year Ended 30 June 2024 Genus ABS Adjusted operating profit1 Latin America Sexed volume Beef volume -3 % +31% +3% -6% • Total volume growth -6%, sexed volumes +6%, beef -8%. • Brazil profit up 11%, due to profit -25% in actual currency -1% in improvement actions throughout the a
Slide 17: Genus R&D and Product Development
Preliminary Results: Year Ended 30 June 2024 Genus R&D and Product Development Genus R&D; % of Genus revenue Porcine Product Development; % of porcine revenue 11% Actual currency 9% 10% 6.9 9.2 3.6% 3.7% 7% 7% 3.6% 3.3% 28.9 29.7 28.8 2.8% 21.9 22.5 FY20 FY21 FY22 FY23 FY24 PIC PD PRP PIC PD as % of
Slide 18: Statutory Income
Preliminary Results: Year Ended 30 June 2024 Statutory Income FY24 FY23 Change actual actual actual Statutory profit before tax Adjusted operating profit £m 67.0 £m 74.6 £m (7.6) £5.5m (FY23: £39.4m) Net IAS 41 valuation mvmt on biological assets (23.2) (16.9) (7.2) Non-cash impacts Amortisation of
Slide 19: Cash Flow Conversion
Preliminary Results: Year Ended 30 June 2024 Cash Flow Conversion Change in metric to improve measurement of performance Old metric New metric changes from old metric Change in CF conversion metric Include: Goal: • Dividends from JVs2 • A measure of Cash Flow conversion • Net capital expenditure2 mo
Slide 20: Free Cash Flow
Preliminary Results: Year Ended 30 June 2024 Free Cash Flow FY24 performance Free cashflow bridge (£m) Cash Conversion FY24 FY23 Actual currency actual £m actual £m 71% (FY23 : 53%) Adjusted operating profit inc. JV 78.1 85.8 Less: JV profit and non-controlling interests (11.1) (11.2) Depreciation a
Slide 21: Solid Financial Position
Preliminary Results: Year Ended 30 June 2024 Solid Financial Position Leverage expected to be similar at June 2025 Net debt bridge £m IFRS 16 leases Actual currency • Net increase in lease liabilities of £26.2m mainly due to two additional farms in China: Ankang and LuoDian Net Net Debt: EBITDA1 Deb
Slide 22: Strategy & Outlook
Pioneering animal genetic improvement to sustainably nourish the world Strategy & Outlook Jorgen Kokke Chief Executive Officer
Slide 23: Our Strategic Priorities
Preliminary Results: Year Ended 30 June 2024 Our Strategic Priorities Continued growth in Deliver successful Drive greater value porcine, with more stable commercialisation of our from bovine growth in China PRP gene edit Generate attractive returns from R&D investments 23
Slide 24: PIC ex-China: Continued Growth
Preliminary Results: Year Ended 30 June 2024 PIC ex-China: Continued Growth Royalty model demonstrating its strength in challenging producer environments Royalty revenues (£m) US pork producers have had four months of improved profitability Actual currency 4-year CAGR 120 100 NAM 90 +4% 100 80 80 70
Slide 25: PIC China: Commercial progress winning royalty customers
Preliminary Results: Year Ended 30 June 2024 PIC China Commercial progress winning royalty customers Pig price to corn price ratio1 PIC China volume (MPEs m) Illustrative Royalty Customer Revenues 24 (£m) ~5x 30 Royalty Revenues 18 25 20 20 15 14 7 6 10 12 10 5 9 9 8 6 5 0 FY20 FY21 FY22 FY23 FY24 Y
Slide 26: U.S. FDA PRP Regulatory Progress
Preliminary Results: Year Ended 30 June 2024 U.S. FDA PRP Regulatory Progress Working through post-product approval compliance procedures, PRP approval expected in calendar year 2025 2024 Continuing dialogue to define novel post-approval oversight Phenotypic Durability Accepted Genotypic Durability
Slide 27: Global PRP Regulatory Progress
Preliminary Results: Year Ended 30 June 2024 Global PRP Regulatory Progress Encouraging early dialogue with Canada & Japan; PRPs arriving in China imminently Regulatory Jurisdiction Approval / Determination Progress Update Colombia Determination Favourable determination received Brazil Determination
Slide 28: Drive Greater Value From Bovine: Value Acceleration Programme
Preliminary Results: Year Ended 30 June 2024 Drive Greater Value From Bovine: Value Acceleration Programme Objectives unchanged: Return to Growth and Improve margin, ROIC and cash generation Accelerate value creation through Objectives commercial excellence and resource Improve margin, ROIC and cash
Slide 29: ABS Value Acceleration Programme Progress
Preliminary Results: Year Ended 30 June 2024 ABS Value Acceleration Programme Progress Phase 1 delivered; Phase 2 underway VAP Phase 1 (FY24): Focus Areas VAP Phase 2 (FY25): Focus Areas Leadership Changes Continuing work from Phase 1 Supply Chain Optimisation Selective Globalisation Pricing Optimis
Slide 30: Summary and Outlook
Preliminary Results: Year Ended 30 June 2024 Summary and Outlook Continued Genetic Improvement achieved Outlook • Market conditions stable to slowly Strategic progress in a improving although we remain challenging operating cautious, particularly in China environment • Solid adjusted operating profi
Slide 31: Appendices
Pioneering animal genetic improvement to sustainably nourish the world Appendices
Slide 32: Technical Guidance
Preliminary Results: Year Ended 30 June 2024 Technical Guidance Area FY24 FY25 Expected Impacts Adjusted Income Statement Items Net Interest £18.3m £17.5m - £19.5m Effective Tax Rate 28.1% 26% - 28% £8m - £9m headwind at current rates; see Appendix for sensitivity Foreign Exchange £6.2m headwind ana
Slide 33: Financial Results
Preliminary Results: Year Ended 30 June 2024 Financial Results FY24 FY23 % Change % Change actual actual actual constant £m £m Revenue 668.8 689.7 (3)% 2% Adjusted operating profit inc. JV 78.1 85.8 (9)% (3)% Net finance costs (18.3) (14.3) (28)% (22)% Adjusted profit before tax 59.8 71.5 (16)% (8)%
Slide 34: Restatement For Product Development and PRP
Preliminary Results: Year Ended 30 June 2024 Restatement For Product Development and PRP FY24 FY23 Previous Product Previous Product PRP PRP reporting development Restated reporting development Restated restatement restatement method restatement actual method restatement actual actual actual £m actu
Slide 35: Cash Conversion metric change reconciliation
Preliminary Results: Year Ended 30 June 2024 Cash Conversion metric change reconciliation FY24 actual FY23 actual NEW METHOD – HISTORY JV & JV & 82% Exc JV Inc JV Exc JV Inc JV NCI1 NCI1 71% 64% Adjusted operating profit 67.0 11.1 78.1 74.6 11.2 85.8 53% Cash from operating activities2 68.8 68.8 78.
Slide 36: Exchange Rate Sensitivity
Preliminary Results: Year Ended 30 June 2024 Exchange Rate Sensitivity FY24 FY24 Spot at Profit Average1 Closing 1st Sep 2024 Sensitivity £m2 • Genus’s geographic profile can lead to translational Mexican Peso 21.7 23.1 25.9 2.1 currency impacts Euro 1.17 1.18 1.19 2.0 • We monitor key rates against
Slide 37: Return on Invested Capital
Preliminary Results: Year Ended 30 June 2024 Return on Invested Capital Return on invested capital is lower by 3.2pts, caused by lower profit (-1.1pts), higher tax rate (-0.9pts) and an increase in invested capital (-1.2pts), of which new China leased farms was the biggest driver. FY24 FY23 £m £m Ad
Slide 38: Proportion of Total Porcine Volumes Under Royalty
Preliminary Results: Year Ended 30 June 2024 Proportion of Total Porcine Volumes Under Royalty NORTH AMERICA EMEA 79% 80% 77% 78% 96% 98% 97% 97% 97% 70% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 LATIN AMERICA ASIA1 71% 67% 84% 83% 57% 77% 78% 77% 46% 45% FY20 FY21 FY22 FY23 FY24 FY20 FY21 F
Slide 39: Porcine Royalty Revenue Growth
Preliminary Results: Year Ended 30 June 2024 Porcine Royalty Revenue Growth NORTH AMERICA EMEA 8% 7% 13% 11% 4% 9% 9% 7% 1% -1% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 LATIN AMERICA ASIA 17% 70% 12% 50% 9% 9% 20% -8% 6% -32% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 39
Slide 40: Glossary
Preliminary Results: Year Ended 30 June 2024 Glossary Artificial insemination (‘AI’) Using semen collected from a bull or Genetic nucleus A specialised pig herd, where Genus PIC keeps NuEra The ABS beef breeding programme and index designed to boar to impregnate a cow or sow when in oestrus. Artific