Brait Plc · JSE:BAT
Brait — Investor Day (September 2021)
25 slides from Brait's investor day presentation, Sep 23, 2021
Slide 1: Capital Markets Day
Capital Markets Day 23 September 2021 Brait PLC (Registered in Malta as a Public Limited Company) (Registration No. C97843) Share code: BAT ISIN: LU0011857645 Bond code: WKN: A2SBSU ISIN: XS2088760157 LEI: 549300VB8GBX4UO7WG59 ("Brait”, the “Company” or “Group”)
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE INDEX Brait Overview and Strategy Page 3 Virgin Active Page 5 New Look Page 9 Premier Page 11 Q&A Page 24 2
Slide 3: Brait Overview and Strategy
BRAIT OVERVIEW AND STRATEGY 3
Slide 4: Achievements since February 2020
BRAIT OVERVIEW AND STRATEGY Achievements since February 2020 ETHOS STRATEGY FOR BRAIT WHAT HAS BEEN DELIVERED Disposals of Iceland Foods (R2.3bn) and DGB (R470m), R4.4bn reduction in group debt 1 Strong Premier performance with LTM EBITDA up c.14% Core asset base and Mister Sweet acquisition conclud
Slide 5: Virgin Active
VIRGIN ACTIVE 5
Slide 6: Virgin Active Overview
VIRGIN ACTIVE Overview Restructuring of the VA Stronger than expected Virgin Active South Africa performance in the UK since Europe business complete re-opening has shown resilience providing a solid recovery and growth through the Coronavirus crisis platform for the business 6% growth in total Howe
Slide 7: Virgin Active Update on operations
VIRGIN ACTIVE Update on operations – Clubs reopened in May 2021 (having been closed since October 2020), with some restrictions (swimming pools, ITALY 21% showers, saunas closed, and proof of vaccination required) – Trading has been in line with expectations, with European summer being a seasonal lo
Slide 8: Update by territory: Membership
VIRGIN ACTIVE Update by territory: Membership Total membership (‘000) 1 Active membership (‘000) 1 Latest update on performance 170 165 • Sales at c.53% of 2019 levels from May 125 113 116 reopening to end August 94 • September sales at c.90% of 2019 ITALY • Usage levels at 79%; significant number o
Slide 9: New Look
NEW LOOK NEW LOOK
Slide 10: New Look Overview
NEW LOOK Overview Year ended 27 March 2021 (FY21) Completed CVA process and Achieved #1 position for overall Cash, liquidity and available facilities recapitalisation womenswear market share in the 18 to Provides the financial strength, funding 44 age range1 £114m and flexibility to execute the stra
Slide 11: Premier
PREMIER >, _& a 22S f aoa uy F ; ie Premier os
Slide 12: Premier is well positioned to lead the market
PREMIER IS WELL POSITIONED TO LEAD THE MARKET Attractive industry fundamentals… 1 Scaled FMCG player 2 Defensive staple foods brands • Significant barriers to entry in the industry: large asset base, • Essential spending accounts for c.60% of total household national distribution footprint and long-
Slide 13: Scaled FMCG player
1 SCALED FMCG PLAYER Significant barriers to entry with leading brands Leading Southern African FMCG manufacturer employing 8,000 people (nearly 12,000 including contracted service providers) With an installed milling capacity Operates 7 wheat mills and 3 Operating platform which is of c.1.1m tons o
Slide 14: Targeted acquisitions and investment over the past 10 years
SCALED FMCG PLAYER 1 Targeted acquisitions and investment into brands, operations and people over the past 10 years Acquisitions: Brand Investment: R2.7bn R2.8bn Acquisition of 10 Millbake and FMCG businesses Significant investment into leading brands Replacement and Expansionary Capex: People: R4.5
Slide 15: Proven track record in creating value from acquisitions
1 SCALED FMCG PLAYER Proven track record in creating shareholder value from acquisitions Acquisition of Acquired the La Femme, largest mageu Durban based (maize drink) business manufacturer in Acquired Ngwane manufacturing eSwatini COMPLETE Mills, largest tampons for INTEGRATION wheat and maize Lil-
Slide 16: Defensive staple foods brands
2 DEFENSIVE STAPLE FOODS BRANDS Bread is the largest dry grocery food product by value in South Africa Key feature Reason Consequence Premier’s bread proposition Convenience Aspirational product for SA consumer • Bakeries in Western Cape, Eastern Cape, Durban Value for money offering and eSwatini ar
Slide 17: Targeted investment resulting in fully integrated, world-class operations
TARGETED INVESTMENT RESULTING IN FULLY INTEGRATED, WORLD- 3 CLASS OPERATIONS Premier has invested R4.5bn on capex projects over the past decade 1. Pretoria Squares plant 1. Pretoria new bakery and mill 1. Pretoria wheat 2. East London bakery upgrade 2. Lesotho bakery upgrade Kroonstad maize 1. Veree
Slide 18: Highly experienced management team
4 HIGHLY EXPERIENCED MANAGEMENT TEAM Management have created a more resilient business Management team of experienced operational senior executives CEO CFO ENVIRONMENTAL, STRATEGY, SALES BAKERIES MILLING, GROCERIES HUMAN RESOURCES Kobus Gertenbach (50) Fritz Grobbelaar (43) SOCIAL & MARKETING & HPC
Slide 19: Premier earns the right to operate in its communities
4 PREMIER EARNS THE RIGHT TO OPERATE IN ITS COMMUNITIES Protect the health and safety of employees 1 2 Contribute to social upliftment 3 Reduce impact on the planet and ensure food safety ▪ Employee health & safety remains a priority with ▪ Premier’s CSI strategy is linked to Sustainable ▪ Reduce en
Slide 20: Excellent financial track record
5 EXCELLENT FINANCIAL TRACK RECORD Demonstrated resilience and growth over the last 10 years Period of significant growth defined by: Period of muted growth driven by: Performance rebound 1. Significant investment into Millbake business, with all its coastal bakeries (and 1. Worst drought in 100 yea
Slide 21: Excellent financial track record: cash generation
5 EXCELLENT FINANCIAL TRACK RECORD Cash generative business with consistent returns to shareholders Free cash flow conversion1 Including expansionary capex Excluding expansionary capex 84% Free cash flow conversion (%) 61% 62% 34% 45% 15% FY19 FY20 FY21 Premier has cumulatively returned R1.7bn to sh
Slide 22: Divisional performance highlights: Millbake
5 EXCELLENT FINANCIAL TRACK RECORD Contribution to Premier Q1 FY22 Divisional performance highlights: Millbake1 84% revenue REVENUE OPERATIONAL EBITDA2 Price / mix: 5% Price / mix: 9% Margin: 12% Margin: 13% Margin: 14% Margin: 12% Volume: 12% Volume: 5% +17% +14% +26% +2% Margin: 13% Margin: 15% Pr
Slide 23: Divisional performance highlights: Groceries
5 EXCELLENT FINANCIAL TRACK RECORD 16% Contribution to Premier Q1 FY22 Divisional performance highlights: Groceries revenue REVENUE OPERATIONAL EBITDA1 Margin: 9% Margin: 10% Margin: 11% Margin: 11% 0% 0% +9% -4% Margin: 11% Margin: 9% +4% -13% H1 FY20 H1 FY21 H2 FY20 H2 FY21 Q1 FY21 Q1 FY22 H1 FY20
Slide 24: Q&A
Q&A
Slide 25: Notice to recipients
Notice to recipients The presentation has been prepared by the Group. For the purposes of this notice to recipients, the “presentation” shall include this document, the oral presentation of this document by the Group or any person on its behalf, hard copies of this document and any materials distrib