Slide 1: Final Results for the Year Ended 30 September 2021
FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Daemmon Reeve — Chief Executive Officer Richard Hope — Chief Financial Officer
Slide 2: Disclaimer
A DISCLAIMER UTREATT 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
Slide 3: Record Performance on All Key Metrics
A RECORD PERFORMANCE ON ALL KEY METRICS DIEU £124.3m 34.0% £20.9m Revenue’ Gross Margin Profit Before Tax’? +14.0% +480bps +41.3% 27.05p 7.50p 20.9% Earnings Per Share*2 Full Year Dividend Return on Average 437.2% +25.0% Capital Employed? +240bps
Slide 4: Remarkable Performance
REMARKABLE PERFORMANCE ¢ Strong performance driven by growth in addressable markets * Profit before tax'? materially exceeding initial expectations * No material impact from global supply chain issues * Margin growth led by healthier living categories * Navigating COVID-19 including operational chal
Slide 5: Growth - Innovation and Consumer Trends
GROWTH - INNOVATION AND CONSUMER TRENDS A op TREATT Diversifying across growing addressable markets RTD Cocktails continue to win market share - partnering with many of the world’s leading brands Continuing demand for natural, better-for-you products Promising opportunities from new coffee platform
Slide 6: ESG - It's in Our DNA
ESG - IT’S IN OUR DNA STRATEGY: PROGRESSING OUR PRIORITIES: + Further embed sustainability - the lens through * Mapping our sustainable supply chain strategy which we view our business * Review purpose, values and behaviours to support * To explore opportunities and mitigate risks in sustainability
Slide 7: Financial Review
dp TREATT FINANCIAL REVIEW
Slide 8: Track Record of PBT Growth - 2021: +41.3%
A TRACK RECORD OF PBT GROWTH - 2021: +41.3% ap TREATT PROFIT BEFORE TAX'2 £20.9m 50% £14.8m £12.7m £13.3m £11.7m 50% 46% 4T% 41% _ 41% 38% ” 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Traded Evolution from Traded to Added-Value » Added-Value 1 From continuing activities 2 Excluding exceptiona
Slide 9: Dividend Per Share - 2021: +25.0%
DIVIDEND PER SHARE - 2021: +25.0% A op TREATT 7.50p 6.00p 5.50p ne 5.10p 4.80p aga 3.50p 4.04p 4.35p ag 3.70p 3.84p We 2.76p 3.10p 2.60p 2.60p 2.08p 2.00p 1.45p 1.60p 1.70p 1.84p 1.28) 1.35p . 1.02p 1.10p 1.24p p 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 10: 2021 Financial Review
2021 FINANCIAL REVIEW A op TREATT INCOME STATEMENT o 2 s © a a lo} 2 a= 2 < 5 is) Year Ended 30 September peoen co Change Revenue 124,326 109,016 14.0% Gross profit 42,223 31,876 32.5% Gross profit margin 34.0% 29.2% 480bps Administrative expenses (20,877) (16,784) (24.4%) Operating profit 21,346 15
Slide 11: Cash Flow
CASH FLOW A op TREATT £30.0m £25.0m £23.9m. £20.0m £15.0m £10.0m £5.0m £0.4m £0.0m (£5.0m) (£10.0m) (£15.0m) Net Cash YE Operating 2020 Cash Flow * Strong underlying cash performance * Working capital increase - prudent levels of inventory to mitigate supply chain risk (£10.0m) (£9.5m) (£4.9m) (£4.9
Slide 12: Strong Growth in Higher Margin Categories
STRONG GROWTH IN HIGHER MARGIN CATEGORIES A op TREATT % OF REVENUE 2021 Health & Wellness 7.1% (2020: 6.8%) Citrus Herbs, Spices & Florals 9.3% (2020: 10.6%) Fruit & Vegetables 10.2% (2020: 7.3%) Tea 11.0% (2020: 5.9%) Synthetic Aroma 18.2% (2020: 19.1%) 43.6% (2020: 50.3%) % Growth % of Category 20
Slide 13: Revenue: +14.0%
REVENUE: +14.0% PROGRESS IN BOTH ROUTES TO MARKET STRONG GROWTH IN MAJOR TERRITORIES! ge an 2021 2021 WDirect to Brand Owners —«@ Flavour Houses BUnited States +22% Gest of the World -11% GEurope +18% UK +28% @The Americas +22% @China +8% 3B From continuing activities The Americas (excluding the US)
Slide 14: Strategic Evolution - Moving Up the Value Chain
N STRATEGIC EVOLUTION Uy TREATT MOVING UP THE VALUE CHAIN . Continued progress in shift away from traded activities Sales: Added-Value v Traded * Citrus becoming a more added-value category - reduced dependency on traded and minimally-processed citrus * Science and manufacturing technologies and IP
Slide 15: Financial Metrics
FINANCIAL METRICS A op TREATT Net Operating Margin * Increased from 12.4% to 17.2% over the last 5 years * Target range: 15% - 20% Return On Average Capital Employed (ROACE) * 2017: 10% Placing to fund investment * 2021: Investment in US now yielding results * ROACE for FY 2021 - 21.0% * Target rang
Slide 16: Market Overview, Strategic Priorities
dp TREATT MARKET OVERVIEW STRATEGIC PRIORITIES
Slide 17: Healthier Lifestyles
HEALTHIER LIFESTYLES L TRUST THROUGH TRANSPARENCY Evolution from energy drinks to ‘natural’ functional Pandemic accelerating trend Segment witnessing exponential growth Ingredient transparency paramount Clean label ingredient market forecast 85% of consumers to grow at a CAGR of 6.7% globally say th
Slide 18: Accessing Market Growth Opportunities
A ACCESSING MARKET GROWTH OPPORTUNITIES UP TREATT INNOVATION IN READY TO DRINK AND FUNCTIONAL BEVERAGE MARKETS RTD COFFEE Global market value forecast to grow to $18.9bn by 2026 - 14.2% increase from 2020 Cold brew driving growth and premiumisation Hybrid beverage trends New drinking occasions, flav
Slide 19: Benefits of the New UK Site
BENEFITS OF THE NEW UK SITE CAPACITY, EFFICIENCY, INNOVATION AND COLLABORATION * Transfer complete by mid-2023 * Capacity - materially higher volumes possible + Efficiency — optimal site logistics; moving from analogue to digital * Innovation — significantly expanded R&D labs * Client collaboration
Slide 20: Current Trading & Outlook
CURRENT TRADING & OUTLOOK ¢ Continued strong growth in revenue expected ¢ Material opportunities, including coffee * Momentum building in China ¢ Manufacturing underway at new UK facility from mid 2022 * Capital Markets Day - Friday 21%* January 2022 ¢ Strengthening executive team to support growth:
Slide 21: Thank You - Any Questions?
A op TREATT THANK YOU Any QuEsTIONs? A u TREATT
Slide 22: Appendices
dp TREATT APPENDICES
Slide 23: Product Categories
Herbs, Spices & Florals Citrus Botanical ingredients are growing in With a strong and established popularity in several markets as background in citrus, our range of ‘naturalness’ continues to be an natural and synthetic products are increasing priority well aligned with consumer tastes ‘Synthetic A
Slide 24: Partnership Model
PARTNERSHIP MODEL TREATT Top 10 Customers Ranking by Revenue FY21 Type of Products No. Years asa Customer Categories Ranking by Revenue FY16 KEY Type of Products: Flavour Fragrance Alcoholic Beverage Non-Alcoholic Beverage Consumer Goods Distributor Categories: Citrus ) Tea 0) Health & Wellness S))
Slide 25: 2021 Cash Flow
2021 CASH FLOW Year Ended 30 September peoen coo Operating cash flow 23,940 15,902 Increase in inventories (11,851) (458) Increase in receivables (2,680) (1,278) Increase in payables 4483 1,511 Cash generated from operations 13,892 15,677 Contributions to pension scheme (450) (300) Taxation paid (4,
Slide 26: 2021 Balance Sheet
2021 BALANCE SHEET Year Ended 30 September 2021 2020 Fixed assets £65.0m £52.7m Inventories £47.3m £36.1m Receivables £26.4m £24.2m Payables (£17.0rm) (£12.4m) Working capital £56.7m £47.9m, Taxation £1.3m £0.1m Net (debt)/cash (£9.1m) £0.4m Pension deficit (£6.8m) (£10.1m) Other net (liabilities)/a
Slide 27: Earnings Per Share
EARNINGS PER SHARE' o TREATT 19.72p 18.02p 17.82p 11.649 16.41 P 9.44p 9.47p 9.83p 8.58p 8.35p 8.08p 6.58p 2017 2018 2019 2020 1 From continuing activities 27.05p
Slide 28: Investment Infrastructure Phase Timeline
> A A INVESTMENT INFRASTRUCTURE PHASE TIMELINE TREAT Initiated £48m Capital Investment Programme 2017 + Equity fund raise £20m US $15m Expansion Complete 2019 UK build complete (fit-out underway) 2020 Colleagues begin 2021 transition to new site Operations to commence at new site improved margin 202
Slide 29: Treatt
u TREATT