Jde Peet's Nv · BIVA:JDEP/N
Jde Peet's Nv — FY2023 Earnings Presentation
25 slides from Jde Peet's Nv's earnings presentation, Feb 21, 2024
Slide 1: Full-Year Results 2023
FULL-YEAR RESULTS 2023 21 FEBRUARY 2024
Slide 2: Agenda
AGENDA BUSINESS PERFORMANCE & OUTLOOK FABIEN SIMON FINANCIAL PERFORMANCE SCOTT GRAY QUESTIONS & ANSWERS
Slide 3: Important Information
IMPORTANT INFORMATION Presentation The condensed consolidated unaudited financial statements of JDE Peet’s N.V. (the There are a number of factors that could affect the Group’s future operations and could cause “Company”) and its consolidated subsidiaries (the “Group”) are prepared in accordance tho
Slide 4: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK FABIEN SIMON
Slide 5: Highlights 2023 - The Year of the Inflection Point
HIGHLIGHTS 2023 - THE YEAR OF THE INFLECTION POINT • Closing 2023 strongly, with H2 organic sales growth of +4.3% and organic adj. EBIT growth of +5.5% • Back to long-term profitability algorithm for the full-year (excluding Russia’s performance) - Organic sales growth of +3.9%, with positive volume
Slide 6: Strong Operational Discipline to Support Premium Growth
STRONG OPERATIONAL DISCIPLINE TO SUPPORT PREMIUM GROWTH FY 2023 – Organic % Vol/Mix Pricing Adj. Gross Profit GHG Emissions** -0.8 % +4.7 % +2.9 % -9.3 % H2: +1.8% H2: +2.4% H2: +4.7% • Sequential improvement • Pricing for high-single-digit • SKU & portfolio rationalisation • 83.8% responsibly sourc
Slide 7: Continuing to Deliver Against Strategic Priorities
CONTINUING TO DELIVER AGAINST STRATEGIC PRIORITIES More Global More Digital More sustainable in a more fragmented world in an increasingly in an imperative transition channel-blurring environment towards de-carbonisation • Emerging markets organic • E-commerce growth double- • Embedded Carbon Accoun
Slide 8: Being Recognised as a Sustainability Leader
BEING RECOGNISED AS A SUSTAINABILITY LEADER LIABILITY NO LIABILITY/ COMPETITIVE ATTRACTIVE/ LEADER Bottom (0-34) Top 25% (35-40) Inclusion in DJSI Europe (54+) Top 4% 35 43 3 62 #15 of 370 companies ‘High risk’ (>30) ‘Medium risk’ (25-30) ‘Low/med to negligible risk’ (0-24) Top 2% 23.0 #6 of 361 31.
Slide 9: L'OR Barista: Freedom to Long-Term Growth in Espresso
L’OR BARISTA: FREEDOM TO LONG-TERM GROWTH IN ESPRESSO ESPRESSO PERFORMANCE IN CORE FOOTPRINT (GLOBAL EXCL. US) • Aluminium* capsules OSG +10% in FY 23 (DD growth last 4 yr CAGR) • L’OR® almost 2 times bigger than the next brand** • New partnership announced with COSTA coffee • Intentional launch & i
Slide 10: Globalising Further in 2024, with Two Inorganic Transactions
GLOBALISING FURTHER IN 2024, WITH TWO INORGANIC TRANSACTIONS Geography Largest global coffee market in value Largest global coffee market in cups Asset position Largest regional player in the Midwest Strong #2 in North / North-East Rationale Expanding portfolio of pure-premium-play in US Scale & syn
Slide 11: Positioned to Deliver on Medium-Term Algorithm in 2024
POSITIONED TO DELIVER ON MEDIUM-TERM ALGORITHM IN 2024 OUTLOOK 2024 Organic sales growth At the lower end of our medium-term range of 3-5% Organic Adjusted EBIT growth Mid-single-digit excluding Russia Total company: low single-digit in H1 and mid-single-digit in H2 Net leverage Around 3x including
Slide 12: Financial Performance
FINANCIAL PERFORMANCE SCOTT GRAY
Slide 13: Full-Year 2023 Results
FULL-YEAR 2023 RESULTS ORGANIC SALES GROWTH PROFITABILITY CASH & DEBT Organic sales growth Adjusted EBIT Free Cash Flow +3.9% EUR 1,128 m EUR 522 m In-home Away-from-home Organic growth Reported growth Net leverage +3.3% +6.4% +1.1% -8.1% 2.73x Underlying earnings per share EUR 1.51 13
Slide 14: Sales Development
SALES DEVELOPMENT DRIVEN BY PRICING AND SUPPORTED BY SEQUENTIAL VOLUME/MIX IMPROVEMENT Organic growth +3.9% Reported growth +0.5% • Organic growth driven by pricing and improving 4.7% -3.7% vol/mix in H2 (+1.8%) 8,151 -0.8% 0.3% 8,191 • Broad-based performance across markets, brands and channels • T
Slide 15: Organic Sales Growth Continues to Be Broad-Based
ORGANIC SALES GROWTH CONTINUES TO BE BROAD-BASED GEOGRAPHIES CHANNELS Developed Emerging markets In-Home Away-from-Home markets + 3.7% + 4.6% + 3.3% + 6.4% BRANDS / PRICE POINTS CATEGORIES Regional & Local SiSe, Beans & Global brands Others brands other premium + 8.5% + 2.7% + 6.4% + 1.1% 15
Slide 16: (Adjusted) EBIT Development
(ADJUSTED) EBIT DEVELOPMENT ORGANIC ADJUSTED EBIT INCREASED BY 1.1%, DRIVEN BY HIGHER ORGANIC GROSS PROFIT Organic growth +1.1% Reported growth -8.1% 1,227 -4.1% -5.1% 1,128 * In EUR m, unless otherwise stated SG&A includes a.o. A&P, Warehousing & distribution, Repairs-maintenance-&-utilities, Selli
Slide 17: Full-Year 2023 Performance by Segment
FULL-YEAR 2023 PERFORMANCE BY SEGMENT ALL SEGMENTS CONTRIBUTING TO TOPLINE GROWTH WITH IMPROVING H2 PROFITABILITY IN EUROPE AND APAC EUROPE LARMEA APAC PEET’S Organic Sales Growth 4.0% 4.7% 2.1% 3.9% Organic Adjusted EBIT 8.6% (21.1%) 15.2% (1.0%) Growth 4-yr CAGR Organic Adj. (2.7%) 6.0% 2.8% 11.3%
Slide 18: Underlying Profit Development
UNDERLYING PROFIT DEVELOPMENT STRONGER OPERATING PERFORMANCE OFFSET BY FAIR VALUE CHANGES IN DERIVATIVES AS WELL AS FX AND SCOPE/OTHER Underlying EPS Performance excl. FV and FX changes +7.8% Underlying EPS EUR 1.91 EUR 1.51 27 32 (275) 936 14 734 FV changes of derivatives, FX results, scope, other
Slide 19: Free Cash Flow and Net Debt Development
FREE CASH FLOW AND NET DEBT DEVELOPMENT STRONGER H2 CASH FLOW GENERATION; FULL YEAR REFLECTING ANTICIPATED NORMALISATION OF WORKING CAPITAL FREE CASH FLOW NET DEBT DEVELOPMENT 4,050 3,890 FREE CASH FLOW EUR 522 m 3-YR AVG FCF CONVERSION1 71% 1 Based on 3-year last twelve months *In EUR m, unless oth
Slide 20: Net Leverage and Net Debt Development
NET LEVERAGE AND NET DEBT DEVELOPMENT NET LEVERAGE REDUCED TO 2.7X, APPROACHING OPTIMAL LEVERAGE RANGE 6200 5 5,552 5,090 5200 4.5 4,661 4,435 4,253 4,050 4,220 4200 3,890 4 NET LEVERAGE 3200 3.4x 3.5 2.73x 3.2x 2200 3.0x 3 2.8x 2.8x 2.7x 2.6x 2.7x 1200 2.5 200 2 30 Jun 2020 31 Dec 2020 30 Jun 2021
Slide 21: Strong Debt Maturity Profile
STRONG DEBT MATURITY PROFILE WITH ALL FUTURE MATURITIES BELOW 3-YR AVERAGE FREE CASH FLOW GENERATION DEBT MATURITY PROFILE1 1.16% Avg. cost of debt2 1.5 FCF (3-yr avg) 0.8 0.8 4.8y Avg. maturity 0.7 0.5 0.5 0.5 0.5 0.5 0.5 0.6 EUR Total liquidity 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 203
Slide 22: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES ORGANIC GROWTH Invest behind organic growth opportunities within our existing business to support growth OPTIMAL LEVERAGE Target an optimal leverage of around 2.5x Continue to pursue inorganic growth opportunities, but always in line with our highly INORGANIC GROWTH sel
Slide 23: Dividend Proposal Full Year 2023
DIVIDEND PROPOSAL FULL YEAR 2023 DIVIDEND FY 23 EUR 0.70 FIRST INSTALMENT SECOND INSTALMENT EUR 0.35 in July 2024 EUR 0.35 in January 2025 • Subject to shareholder approval at the AGM on 30 May 2024 • Consistent with our dividend policy and capital allocation priorities 23
Slide 24: Questions & Answers
Elevate Your Coffee EXPerlence vg wall =e <5
Slide 25: ‘JDE feets
? p ‘JDE feets A COFFEE & TEA FOR EVERY CUP 7. iP . LR. Peets Gacoss, SaaS @tassimo ars COFFEE” 2) > om Gag