Lotus Bakeries NV · EURONEXT:LOTB
Lotus Bakeries NV — FY2022 Earnings Presentation
42 slides from Lotus Bakeries NV's earnings presentation, 2023
Slide 1: Lotus Bakeries Announcement Full Year 2022 Results
LOTUS BAKERIES ANNOUNCEMENT FULL YEAR 2022 RESULTS
Slide 2: Presenting 2022 revenue of €877 million
PRESENTING 2022 REVENUE OF €877 MILLION SB AKERIES 2022 RECORD REVENUE GROWTH OF €127 MILLION 19.4% REBITDA MARGIN 2022 €103.3 MILLION NET PROFIT 2022 87%° FCF CONVERSION 2022 LOTUS BISCOFF AND LOTUS NATURAL FOODS CAGR OF RESPECTIVELY 15% AND 16%°* 100% ee packaging @ Net Financial Debt / REBITDA 20
Slide 3: An impeccable track record of sustainable growth
AN IMPECCABLE TRACK RECORD OF en "nt Ble: Rem SUSTAINABLE GROWTH 7 rrrereeeeeerrrr as 11.8% CAGR «se 800: 700 : 600 : 500 : 400 : 300 200 100 0 2012 «2013 «2014 «2015S 2016 )9= 2017 «2018 §9= 201992020» 2021 += 2022 3 - Lotus Bakeries - Announcement Full Year 2022 Results @®
Slide 4: Lotus Bakeries timeline
LOTUS BAKERIES TIMELINE Acquisition of Kiddylicious The company Listing on was established —_ the Brussels in Belgium by Stock Jan Boone Snr Exchange Opening of the BEAR production plant in South Africa Biscoff US plant is operational Corporate Venture Fund FF 2032 takes its first minority stake Jan
Slide 5: Full Year 2022 Highlights
FULL YEAR 2022 HIGHLIGHTS HIGH QUALITY ORGANIC GROWTH OF 17% OR €127 MILLION HISTORICALLY HIGH INVESTMENTS OF €153 MILLION MAINLY CAPACITY EXPANSION LOTUS BISCOFF AND LOTUS NATURAL FOODS REVENUE UP WITH 25% AND 24% RESPECTIVELY NET FINANCIAL DEBT REMAINS LOW AT LESS THAN 1 TIMES REBITDA RECURRING EB
Slide 6: Three pillars: a focused and proven strategy
THREE PILLARS: A FOCUSED AND PROVEN STRATEGY Share of Revenue” 2022 Growth Historic CAGR Strategic Ambition LOTUS BISCOFF 94% 25% 15% (2012-2022) Build Lotus Biscoff toa top 3 global cookie brand LOTUS NATURAL FOODS 23% 24% yf * 16% (2015-2022) Accelerate growth of Lotus Natural Foods through intern
Slide 7: Strong organic growth of Lotus Biscoff & Lotus Natural Foods
STRONG ORGANIC GROWTH OF LOTUS BISCOFF & LOTUS NATURAL FOODS LOTUS NATURAL FOODS EQUALS LOTUS LOCAL HEROES amp = LOTUS BISCOFF mmm = 107 US NATURAL FOODS mmm = LOTUS LOCAL HEROES
Slide 8: Geographical distribution branded revenue
GEOGRAPHICAL DISTRIBUTION BRANDED REVENUE 25% 16% 13% 12% 8% 3% 2% 2h ( % % @ 8 « « 4 a = e S20 «= SS w UK us BE FR fs De cH Kor 8 - Lotus Bakeries - Announcement Full Year 2022 Results OTHER
Slide 9: Global production footprint
Lembeke Courcelles Oostakker Eeklo Lotus Biscoff Lotus Waffles Lotus Cakes Caramelised Biscuits GLOBAL PRODUCTION FOOTPRINT Lotus Dinosaurus Lotus Biscoff BEAR packaging @ _BISCOFF PRODUCTION SITES Q BEAR PRODUCTION siTES Q LocaL HEROES PRODUCTION SITES s Wolseley BEAR Annas Pepparkakor Biscuits Kun
Slide 10: Build Lotus Biscoff to a top global cookie brand
BUILD LOTUS BISCOFF TO A TOP 3 GLOBAL COOKIE BRAND
Slide 11: Geographical distribution Biscoff revenue
GEOGRAPHICAL DISTRIBUTION BISCOFF z REVENUE x 11% EEE oe = a = a ED = e = p> faa ed @ @: SI eo SQ a Sy a iS ss ez ez ez e s 0) ala Viv a wy @ © 0 ) D QO e: s Coe >@®@ @ Ge ) @ a. oS 0 aa . 4 OTHER UK R BE CN NL fs DE cH KOR wz LOTUS BISCOFF (dois) 11 ~ Lotus Bakeries ~ Announcement Full Year 2022 Re
Slide 12: Accelerating globalisation
ACCELERATING GLOBALISATION* EUROPE 37 ai Xi NORTH AMERICA 1.7 BIL N IL OCEANIA 154.1M SOUTH AMERICA 17.5 MIL TOTAL NUMBER OF BISCOFF COOKIES 222 7,195,041,280 “Growth compared to 2008 AFRICA » 67.1 MIL ID LOTUS BISCOFF (ots) 12 - Lotus Bakeries - Announcement Full Year 2022 Results
Slide 13: Third Biscoff plant in Asia
THIRD BISCOFF PLANT IN ASIA @ Japan te; South-Korea © Hong Kong ‘> Philippines © Indonesia LOTUS BISCOFF Singapore GEOGRAPHICAL SPLIT ® Australia ©@ New Zealand mmm EMEA mmm NORTH AMERICA C toruspiscorr — ( BISCOFF eam ASIA PACIFIC 13 ~ Lotus Bakeries - Announcement Full Year 2022 Results (lots)
Slide 14: Lotus Biscoff cookies repeatable model of success
LOTUS BISCOFF COOKIES REPEATABLE MODEL OF SUCCESS CREATE BUILD ACCELERATE EXPAND High Household pend OODOGE UK @tw@zrooFereEe “CD ITO} SeO0 SVK ISR) CBE OO G@WONMGSOCS ere60 OOOO Low Time mm Changed phase compared to 2021 LOTUS BISCOFF : jit is 14 - Lotus Bakeries - Announcement Full Year 2022 Resul
Slide 15: Jumping to position 6 in global cookie brand ranking
JUMPING FROM POSITION 10 TO POSITION 7 IN 2021 AND NOW TO POSITION 6 IN 2022 GLOBAL COOKIE BRAND RANKING Lotus in 2021 Lotus today rand 8 C) o= Brand 10 Brand 9 8 @ Brand 5 Brand 4 Brand 3 @ Boel Value": <1Bil <1Bil <1Bil <1Bil" <1Bil" <1Bil <1Bil <1Bil > 1Bil > 4Bil “Source: Euromonitor internation
Slide 16: Ambition to become a top cookie brand is unchanged
AMBITION TO BECOME A TOP 3 COOKIE BRAND IS UNCHANGED GLOBAL COOKIE BRAND RANKING pone ( Lowe-rerm eee | antl j I | Lotus to ase Lotus a Brand 10 Brand 9 Brand 7 Brand 5 Bran Value”: <1Bil <1Bil ‘<1Bil <1Bil <1Bil <1Bil <1Bil <1Bil > 1Bil > 4Bil “Source: Euromonitor international. LOTUS BISCOFF Categ
Slide 17: A new design for Biscoff
A NEW DESIGN FOR BISCOFF WITH A CONTEMPORARY AND CONFIDENT LOOK “BISCOFF ENDORSED BY LOTUS” CURRENT DESIGN Biscoft 4 | 250ge LOTUS BISCOFF (lotus) 17 - Lotus Bakeries — Announcement Full Year 2022 Results
Slide 18: A new design for Biscoff
A NEW DESIGN FOR BISCOFF WITH A CONTEMPORARY AND CONFIDENT LOOK CURRENT DESIGN Biscoft 4 1 The Original Speculoos LOTUS BISCOFF (lotus) 18 - Lotus Bakeries Announcement Full Year 2022 Results
Slide 19: Natural Foods
NATURAL FOODS ACCELERATE GROWTH OF LOTUS NATURAL FOODS THROUGH INTERNATIONALIZATION, INNOVATION AND ACQUISITIONS
Slide 20: Accelerated internationalization of current brand portfolio
ACCELERATED INTERNATIONALIZATION OF CURRENT BRAND PORTFOLIO = 6§0€M Revenue UK 2015 CAGR 2015-2022: 16% NATURAL FOODS (ots)
Slide 21: Geographical distribution Lotus Natural Foods
GEOGRAPHICAL DISTRIBUTION LOTUS : NATURAL FOODS = INTERNATIONAL REVENUE . (OUTSIDE UK) 4% 4% liiiii ry re) ee oe i en Sot OFVNSVOCHPUVCTHES=< N CYP rk — 2 NATURAL FOODS lotus)
Slide 22: Internationalization of Natural Foods continues
INTERNATIONALIZATION OF NATURAL FOODS CONTINUES NATURAL FOODS (ots)
Slide 23: Peter's Yard
PETER’S YARD PETERS YARD ¢ IS A BRITISH BRAND OF ARTISANAL SOURDOUGH CRACKERS AND CRISPBREAD * HAS LISTINGS AT MAJOR UK RETAILERS: SAINSBURY’S, WAITROSE, OCADO... HAS AROUND £6 MILLION REVENUE * IS INTEGRATED IN LOTUS NATURAL FOODS WITH A NEW MANAGEMENT TEAM FOCUSSES INITIALLY ON ACCELERATING GROWTH
Slide 24: UK Natural Foods brands together in new office
UK NATURAL FOODS BRANDS TOGETHER IN NEW OFFICE IN ST. ALBANS, LONDON Kippyuicious = PETER'S YARD mars BEAR ‘TREK More than 100 employees will be located at the St. Albans Office St. Albans London NATURAL FOODS lotus)
Slide 25: FF2032 has invested almost €20 million across six portfolio companies
FF2032 HAS INVESTED ALMOST €20 MILLION ACROSS SIX PORTFOLIO COMPANIES €40 MILLION corporate venture fund of Lot promisin: brands bette! you food & drinks Possibility to fully acquire and CURRENT FF2032 PORTFOLIO \ Rs ara ) E LOVE, Vn‘ ro oe PETER'S YARD CoRN T IQBAR SAVOURY SNACKING SAVOURY SNACKING
Slide 26: IQBAR is FF2032's most recent addition
‘IQBAR’ IS FF2032’S MOST RECENT ADDITION TO THE PORTFOLIO “Will has created a bar brand that ticks all the boxes in a massive and growing category. So far, IQBAR has already shown good traction with consumers and we have strong belief the brand will continue to perform strong. We believe in the team
Slide 27: Financials & Non-Financials Full Year 2022 Results
FINANCIALS & NON-FINANCIALS FULL YEAR 2022 RESULTS
Slide 28: Delivering strong full year 2022 results
DELIVERING STRONG FULL YEAR 2022 RESULTS Revenue in€M 2020. 2021 = 2022 “Excluding expansion CAPEX “"Excluding IFRS 16 REBITDA in€M 136 2020 151 2021 170 2022 in€M in€M 153 13g (48 119 66 48 2020 © 2021 2022 2020 © 2021 «2022 28 — Lotus Bakeries - Announcement Full Year 2022 Results Net Financial De
Slide 29: Delivering strong full year 2022 results
DELIVERING STRONG FULL YEAR 2022 RESULTS Revenue Growth in % Revenue Growth in €M REBITDA % on Revenue 17.0 fo mf 5 20 mM 127 13.1 87 10.1 8.3 56 51 6.2 | 32 2018 2019 2022 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 29 - Lotus Bakeries - Announcement Full Year 2022 Results @®
Slide 30: Strong top line growth with expanding profitability
STRONG TOP LINE GROWTH WITH EXPANDING PROFITABILITY 12.1% CAGR eg 871 750 3 | 556 2018 2019 2020 2021 2022 ummm «REVENUE INEM qm = 20118-2022 CAGR% REBITDA 11.4% CAGR a 170 2018 2019 2020 2021 2022 mmm EBITDA IN CM qm = REBITDA % ON REVENUE mmm = 2018-2022 CAGR% 30 - Lotus Bakeries - Announcement Fu
Slide 31: Income statement
INCOME STATEMENT INEM REVENUE RAW MATERIALS, PACKAGING AND CO-MANUFACTURING ‘SERVICES AND OTHER GOODS EMPLOYEE BENEFIT EXPENSE DEPRECIATION AND AMORTISATION OTHER OPERATING INCOME AND EXPENSES RECURRING OPERATING RESULT (REBIT) 2022 % Revenue 8715 “3113 -218.3 1736 29.2 48 2021 % Revenue % Evolution
Slide 32: Inflation largely offset by price increases and efficiencies
INFLATION LARGELY OFFSET BY PRICE INCREASES AND EFFICIENCIES Raw Materials, Packaging and Services and Other Goods Employee Benefit Expense Co-Manufacturing (% of Revenue) (% of Revenue) (% of Revenue) 35.5% 332% 399% 326% 33.4% 216% 211% 267% — 5.6% 24.9% | | | 20.1% 20.2% | 20.4% 19.8% 2018 2019 2
Slide 33: Evolution of recurring net profit
EVOLUTION OF RECURRING NET PROFIT INEM = Recurring net profit as a% on revenue n0 100 131 27 93.9 (> 86.2 12.5% ; pe 13.0% 78.0 70.0 12.7% 12.6% - 1. Pd +. vd J \. ws 2018 2019 2020 2021 2022 33 — Lotus Bakeries - Announcement Full Year 2022 Results 106.2 12.1%
Slide 34: 2023 capex estimated in the range of €100 million
2023 CAPEX estimated in the range of €100 MILLION INVESTMENT PROGRAMME ms IN FULL EXECUTION i va ~\ me Co) Biscoff plant - Lembeke ° = Biscoff plant - Mebane 34 Lotus Natural Foods South Africa and US 3 (>) Biscotf Plant - Thailand Project CAPEX 2023 - 2026 ]® Maintenance { of 125€M - 150€M } = in N
Slide 35: Record investments in 2022
RECORD INVESTMENTS IN 2022 6 134 46 EB 20 IN eM ACQUISITIONS AND FF2032 PARTICIPATIONS 2018 2019 2020 2021 2022 35 — Lotus Bakeries - Announcement Full Year 2022 Results @®
Slide 36: Strong cashflow generation supporting record investments
STRONG CASHFLOW GENERATION SUPPORTING RECORD INVESTMENTS INEM 2019 2020 2021 2022 REBITDA 123.6 135.7 151.0 169.9 CHANGE IN WORKING CAPITAL 10 66 01 18 MAINTENANCE CAPEX 124 98 As 14.3 FREE CASH FLOW 104. 119.3 139.4 1478 (CASH CONVERSION 84% 88% 92% 87% ) EXPANSION CAPEX -34.0 10.4 ~48.2 119.8 FREE
Slide 37: Net financial debt remains below 1 times REBITDA
NET FINANCIAL DEBT” REMAINS BELOW 1 TIMES REBITDA INEM 154 130 133 111 (—) () 0.9 0.9 0.9 | = 82 P| 0.8 0.6 2) a December 2020 June 2021 December 2021 June 2022 December 2022 qm =NFD/REBITDA “Excluding IFRS 16 37 ~ Lotus Bakeries - Announcement Full Year 2022 Results
Slide 38: Strong balance sheet with low leverage
STRONG BALANCE SHEET WITH LOW LEVERAGE AND CONTROL ON WORKING CAPITAL REQUIREMENTS Key Balance Sheet Components in €M Fixed Assets 623 @i2 Working Capital §5 4 a )2 Equity ee 520) SS 434 Se 17 Net Financial Debt’ ND 95 Ca «118 me 02 |= 2021 a 0 100 200 300 400 500 600 “Including IFRS 16 38 — Lotus B
Slide 39: We are creating strong shareholder value
WE ARE CREATING STRONG SHAREHOLDER VALUE EPS growth in €/share + W1.2%CAGR ----- 6 : m8 : 102.0 928 83.2 | | 2018 2019 2020 2021 2022 39- (Dividend growth =) (Dividend growth =) in €/share 2° BS a ° Ss a ro wo 3 ° si 8 o s a A o 2001 2004 2007 2010 2013 2016 2019 2022 @07 @14 @ 4 @® 30 aap 44 aT 54
Slide 40: Dividend as a % of recurring net profit
DIVIDEND AS A % OF RECURRING NET PROFIT 33.3% 33.3% 33.4% 346% 34.4% Fi : a "i : fi : a) (aan) \ y X J \ J X J \ y 2018 2019 2020 2021 2022 40 ~ Lotus Bakeries - Announcement Full Year 2022 Results
Slide 41: ESG at the heart of what we do
ESG AT THE HEART OF WHAT WE DO Environmental ~ A leader in recyclable packaging. Target to have 100% packaging recyclable by 2025. Anumber of projects defined to close the gap. Carbon neutral in all 12 sites since 2015 r Weepp COP score since 2022 @ SS COMPACT First CoP published June 2022 GRI Repor
Slide 42: Thank you
THANK YOU