Slide 1: For the year ended 24 September 2021
For the year ended 24 September 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 Introduction Gary Kennedy, Chair FY21 Highlights Patrick Coveney, CEO Financial Review Emma Hynes, CFO Operating & Strategic Update Patrick Coveney, CEO Outlook Emma Hynes, CFO Note: The Group uses Alternative Performance Measures ('APMs') which are non-IFRS measures to monitor the pe
Slide 4: Our team
Our team Kevin Moore Gary Kennedy Patrick Coveney Emma Hynes Chief Commercial Officer Chair Chief Executive Officer Chief Financial Officer and Deputy CEO FY21 RESULTS | NOVEMBER 2021 4
Slide 5: Patrick Coveney, CEO
Patrick Coveney, CEO
Slide 6: Executive summary
Executive summary Progressive improvement during FY21 • After challenging H1, a strong H2 improvement in revenue, profitability and cash flow momentum • Strong underlying cash generation leaves leverage metric approaching pre-COVID levels Navigating industry-wide challenges • Supply chain and labour
Slide 7: Greencore FTG revenues building through H2
Greencore FTG revenues building through H2 Pre-COVID levels 1 100% Q2 Q3 Q4 Q1 Q2 Q3 Q4 20 20 20 21 21 21 21 0% Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Jun-21 Sep-21 1 Pre-COVID levels defined as equivalent trading periods in FY19. Pro forma revenue growth illustrated FY21 RESULTS | NOVEMBE
Slide 8: Financial Review - Emma Hynes, CFO
@ Greencore FINANCIAL REVIEW Emma Hynes, CFO ed ~ Making every day taste
Slide 9: FY21 key financial metrics
FY21 key financial metrics +6.2% £39.0m 3.7p Pro Forma Revenue Growth Adjusted Operating Profit Adjusted EPS £72.2m 2.0x 4.5% Free Cash Flow ND:EBITDA* ROIC * As per financing agreements, excluding lease liabilities FY21 RESULTS | NOVEMBER 2021 9
Slide 10: Improved performance in FY21
Improved performance in FY21 £m unless otherwise stated FY21 FY20 Change Group Revenue 1,324.8 1,264.7 +4.8% Pro Forma Revenue Growth (%) +6.2% Adjusted EBITDA 92.3 85.0 +8.6% Adjusted Operating Profit 39.0 32.5 +20.0% Adjusted Operating Margin (%) 2.9% 2.6% +30 bps Adjusted Profit Before Tax 22.6 1
Slide 11: Revenue growth driven by strong second half
Revenue growth driven by strong second half 1,325 1,265 Highlights 483 Other Convenience (£m) 492 • Pro forma revenue growth driven by FTG rebound in second half • Strong execution against new business wins 842 FTG (£m) 773 • FTG growth primarily in sandwiches and in £447m customers with urban and s
Slide 12: New business wins added c.10% to FTG revenue progression in Q4
New business wins added c.10% to FTG revenue progression in Q4 Core business • Salads ~98% of • Ready meals pre COVID • Premium sandwich ~88% of ranges pre COVID • Sushi New categories • Salads • Plant based • Meal kits • Hot sandwiches New channels and formats Q4 19 Q4 20 Q4 21 • Coffee shop New bu
Slide 13: Profit conversion began to improve in H2
Profit conversion began to improve in H2 Adjusted EBITDA performance Adjusted Operating Profit performance £m £m 100 60 FY20 50 FY20 80 FY21 40 FY21 60 30 85.0 92.3 20 38.3 38.8 39.0 40 32.5 63.8 65.8 10 20 26.5 21.2 0 0.2 -5.8 0 -10 H1 H2 FY H1 H2 FY Margin % Margin % 10 10 FY20 FY20 8 FY21 8 FY21
Slide 14: Improved EBITDA and working capital inflows drive Free Cash Flow
Improved EBITDA and working capital inflows drive Free Cash Flow £m 130 33.2 120 FCF 110 conversion 100 -16.2 -3.3 78.2% 92.3 90 80 -19.0 -7.0 6.5 72.2 70 60 -14.3 50 40 30 20 10 0 -10 -20 -30 Adjusted Net Working Capital Maintenance Capex Exceptional Interest & Tax Pension Leases Other Free Cash Fl
Slide 15: Significant reduction in Net Debt
Significant reduction in Net Debt 0 -100 22.6 9.5 -200 87.1 -183.1 72.2 -59.6 -242.7 -300 -24.0 60.7 -350 -350.5 -400 -411.2 -450 Net Debt FY20 Lease Net Debt Free Cash Strategic Equity M&A FX/Other Net Debt Lease Net Debt FY21 £m liabilities FY20 liabilities FY21 FY20 (ex Flow Capex FY21 (ex leases
Slide 16: Balance sheet and liquidity strength restored
Balance sheet and liquidity strength restored £m Highlights 600 569* 500 • Significant reduction in leverage metric to ND:EBITDA 2.0x 400 2.0x at end FY21 • Cash and undrawn facilities of £433.6m at 300 end FY21, up over £200m in 12 months 200 183 • In early FY22, the Group extended weighted average
Slide 17: Patrick Coveney, CEO
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Slide 18: We have outperformed our markets in FY21
We have outperformed our markets in FY21 FY21 performance Strong revenue progress • Resilient growth in UK food market • We are generating faster growth with attractive customer, portfolio and category mix 6.2% 2.9% FTG market recovering strongly UK Grocery Greencore • Market bounced back with easin
Slide 19: FTG recovery driven by UK reopening
FTG recovery driven by UK reopening FTG volumes1 Transit index2 25.0 240.0 Social distancing imposed Lockdown easing Second phase (Non essential (2/3/20) reopening shops / Pubs open) National 200.0 roadmap 20.0 lockdown Education (12/4/21) (23/3/20) First phase returns FTG sales volumes (m units) Se
Slide 20: Strategic partnering with customers in demand and innovation solutions
Strategic partnering with customers in demand and innovation solutions… Onboarding new business Expanding capabilities in Managing range and service with existing customers as salads and plant-based against demand volatility well as new customers formats FY21 RESULTS | NOVEMBER 2021 20
Slide 21: …alongside co-operation on supply chain and inflation…
…alongside co-operation on supply chain and inflation… Pace of profit conversion and Maintaining robust operating efficiencies Committed to recovering operational service levels, continue to be impacted by input cost and other inflation supported by DTS the supply chain and labour with key customers
Slide 22: …and enabled by long term, strategic partnering models
…and enabled by long term, strategic partnering models Investing in capability, Multi-year capital investment Long held and well practised capacity and network with of c.£30m across three sites model key customers to onboard new business FY21 RESULTS | NOVEMBER 2021 22
Slide 23: Making progress in our Better Future Plan
Making progress in our Better Future Plan • Respecting FY21 human rights • Established and verified our science based emissions targets FY22 roadmap By 2030 we will source every • Sourcing • Committing to 100% deforestation free by 2025, signatory of Soy Manifesto ingredient from a sustainable and f
Slide 24: Emma Hynes, CFO
Emma Hynes, CFO
Slide 25: Outlook
Outlook • Encouraging start to FY22 • Progressing well against ongoing inflation recovery • Though supply chain and labour challenges remain ongoing, Group anticipates FY22 outturn in line with market expectations • Continued focus on deleveraging • Committed to dynamic capital management model and
Slide 26: Q&A
Q&A
Slide 27: Supplementary financial information
Supplementary financial information
Slide 28: FY21 P&L: other financial items
FY21 P&L: other financial items Highlights £m FY21 FY20 Net finance costs (before exceptional items) (19.0) (17.2) • Net bank interest payable broadly unchanged Tax (before exceptional items) (2.5) (1.4) • Effective tax rate increased to 15% Group exceptional items (after tax) 12.1 (20.5) • Net exce
Slide 29: FY21 cashflow
FY21 cashflow £m FY21 FY20 Opening Net Debt (excluding lease liabilities) 350.5 288.5 Adjusted EBITDA 92.3 85.0 Working capital 33.2 (46.1) Maintenance capex (16.2) (18.9) Exceptional cashflows (3.3) (10.1) Interest/tax (19.0) (18.9) Pension (7.0) (9.4) Leases (14.3) (11.2) Other 6.5 - Free Cash Flo
Slide 30: FY21 balance sheet highlights
FY21 balance sheet highlights £m FY21 FY20 Net Debt 242.7 411.2 Net Debt (excluding lease liabilities) 183.1 350.5 Net Debt: EBITDA (x)1 2.0 4.4 Pension deficit (net of deferred tax) 29.3 63.8 Average Invested Capital 728.8 712.0 ROIC (%) 4.5 4.1 1 as measured under financing agreements FY21 RESULTS
Slide 31: 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 32: 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 33: IR Contacts & Calendar
IR CONTACTS & CALENDAR Q1 22 Trading Update 27 January 2022 Emma Hynes Chief Financial Officer Annual General Meeting 27 January 2022 Jack Gorman H1 Period End 25 March 2022 H1 22 Results 24 May 2022 Head of Investor Relations Q3 22 Trading Update 26 July 2022 investor.relations@greencore.com Full Y
Slide 34: Greencore at a glance
Greencore at a glance
Slide 35: FY20 Results | November 2020
FY20 RESULTS | NOVEMBER 2020 35
Slide 36: Food to go categories, other convenience categories, distribution
Food to go categories We operate 13 manufacturing units across nine locations, including eight sandwich units, three salad units and two sushi focused units. Other convenience categories We operate eight manufacturing units across seven locations, comprising three chilled ready meal units, two chill
Slide 37: Our business model
Our business model What we need Sourcing with Integrity Making with Care Feeding with Pride People We are committed to ensuring that the raw Our Great Food is underpinned by our dedication We design products with taste, freshness, c.13,000 materials we use in the products we supply to to food safety
Slide 38: Our strategy defines the direction of the Group
Our strategy defines the direction of the Group Growth Our leadership positions in attractive and structurally growing food categories underpin a strategy that combines strong organic growth potential with disciplined strategic investment Relevance Our model of embedded, long term customer partnersh
Slide 39: Our differentiators drive our strategy
Our differentiators drive our strategy People at the Core By embedding a safety culture, providing inspiring leadership and having engaging and effective teams, we ensure that people are at the core of our business Sustainability Sustainability underpins all areas of our business from sourcing with