Slide 1: For the Six Months ended 31 March 2023
For the Six Months ended 31 March 2023
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared for information purposes only, and does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Treatt plc or any of its subsidiary cornpanie
Slide 3: Summary of the Half Year
2023 SUMMARY OF THE HALF YEAR RECORD SALES with growth of 14.6% PROFIT increased by 15.0% with strong cash generation RESILIENT beverage market with underlying trends continuing GROWTH in value-added citrus, coffee and China
Slide 4: Key Learnings Actioned
KEY LEARNINGS ACTIONED PRICE INCREASES successfully implemented to support margin discipline COST CONTROL and self-help measures ongoing FX CONTROLS addressed REDUCTION in inventory and net debt in H1
Slide 5: Financial Review
op TREATT FINANCIAL REVIEW 2023
Slide 6: H1 2023 Financial Review: Income Statement
Hi 2023 FINANCIAL REVIEW INCOME STATEMENT 2022H1 2023H1 Change Period Ended 31 March £'000 £'000 % Key Points: Revenue 66,283 75,951 14.6% Gross pet “a REVENUE growth 14.6%. Ahead 8.5% on constant Gross profit margin 27.5% 28.2% 70bps . currency basis Administrative expenses (11,668) (13,695) (17.4%
Slide 7: Sales Performance
SALES PERFORMANCE RECORD SALES REVENUE IN THE PERIOD Key Driver Price increase and Customer destocking. Margin protected by a 2 U) Continued demand in Customer destocking. Margin protected by Growth in sugar Normalised 7 al (H@s. Growth with US value-add growth oo clean-label ingredients oo reductio
Slide 8: Strong Cash Generation
STRONG CASH GENERATION ™ HIGHEST Hi CASH IN-FLOW IN A DECADE 2023 Net Debt IMPROVED cashflow and net debt despite traditional H1 working capital build INVENTORY improvement and lower capital spend Net debt to EBITDA = 0.8x > ; 6CfF COMPLETED refinance of US bank borrowings with ; increased facilitie
Slide 9: FY23 Objectives
FY23 OBJECTIVES DELIVERING CONFIDENCE GUIDANCE RANGE SALES +7-10% GROSS MARGIN 28-30% _ = NET OPERATING MARGIN 11-12% NET DEBT £12-:14M Continued focus on higher margin value-add categories Higher minimum order value Full year effect of depreciation for UK site Normalised capex spend Sales price inc
Slide 10: H2 Prospects
Slide 11: Beverage Market Growth Drivers
BEVERAGE MARKET GROWTH DRIVERS CONSUMER Y Loyal to brands : Big brands re-inventing portfolios BEHAVIOUR Citrus Herbs, Spices & Florals BEVERAGE SEGMENT 5} Healthy living ly Emerging categories growing rapidly Health & Wellness Tea & Coffee Fruit & Vegetables S % Xs Experience and enjoyment n 0° o0°
Slide 12: China
CHINA Nw BUILDING BLOCKS FOR LONG-TERM OUTLOOK CUSTOMER WINS in 3 of 4 largest beverage brands in the country CITRUS key driver for growth INVESTMENT in laboratories to accelerate sales , LOCAL partnership evolution
Slide 13: Coffee
COFFEE Nv INNOVATION DRIVING GROWTH AHEAD OF EXPECTATIONS FLAVOUR and roast are everything AFFORDABLE indulgence MANUFACTURING platform optimisation = o iS} 7" ba | m m FURTHER customer penetration required iv) (—] 2 ° mm = =] 5 =] ™
Slide 14: Positive momentum going into H2
Positive momentum going into H2
Slide 15: Thank You
THANK YOU Any QUESTIONS? A u TREATT
Slide 16: Appendices
TREATT APPENDICES
Slide 17: Product Categories
Botanical ingredients are growing in With a strong and established a \ popularity in several markets as background in citrus, our rangeof | (( ‘naturalness’ continues to be an natural and synthetic products are XK increasing priority @ » well aligned with consumer tastes Synthetic Aroma Health & Wel
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS Le £76.0m 28.2% £7.3m Revenue Gross Margin Profit Before Tax! +14.6% +70bps +15.0% 9.04p 2.55p Earnings Per Share’ Dividend +10.1% +2.0%
Slide 19: Record Revenue
RECORD REVENUE 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H2
Slide 20: Profit Before Tax
PROFIT BEFORE TAX’ Nv Hi/H2 SPLIT 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 wH2 Evolution continuing from Traded to Added-Value » Excluding exceptional items 2 Treatt compiled consensus of four analyst forecasts for FY22 profit before tax and exceptional items
Slide 21: Dividend Per Share
DIVIDEND PER SHARE 7.85p 7.50p 6.00p 5.50p 5.10p 4.80p 4.35p a.A4p 4.04p 5.35p 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 gH mH2
Slide 22: Earnings Per Share
EARNINGS PER SHARE” Ne 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 gH mH2 12018 - 2020 EPS is shown from continuing activities
Slide 23: 2023 Cash Flow
2023 CASH FLOW Period ended 31 March pecoee veo Operating cash flow 9,637 7,697 Decrease/(Increase) in inventories 3,732 (9,749) Decrease/(Increase) in receivables 2,339 (5,498) (Decrease)/Increase in payables (5,440) 197 Cash generated from/(used in) operations 10,268 (7,353) Contributions to pensi
Slide 24: 2023 Balance Sheet
2023 BALANCE SHEET Key Points IAS 19 PENSION SURPLUS contributions of £450k p.a. will continue to be paid As at As at 31 March 2023 30 September 2022 Fixed assets £73.7m £77.9m Inventories £60.7m £68.4m Receivables £33.4m £37.1m Payables (£16.6m) (£22.9m) Working capital £77.5m £82.6m Taxation (£5.6
Slide 25: Treatt
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