Greencore Group Plc · LSE:GNC
Greencore — Investor Day (February 2025)
100 slides from Greencore's investor day presentation, Feb 5, 2025
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY Introducing the Greencore way of winning 5 February 2025 1
Slide 2: Disclaimer - forward looking statements
Disclaimer ─ forward looking statements Certain statements made in this document are, or may be deemed to be, 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 bas
Slide 3: Today's agenda
Today’s agenda Topic Welcome & introduction Speaker(s) Dalton Philips, Chief Executive Officer Greencore today & our portfolio Nigel Smith, Chief Strategy, Planning and Development Officer Commercial Excellence Andy Parton, Chief Commercial Officer Operational Excellence Lee Finney, Chief Operating
Slide 4: Who you'll hear from today
Who you’ll hear from today Dalton Philips Catherine Gubbins Andy Parton Lee Finney Nigel Smith Guy Dullage Damien Moynagh Chief Executive Chief Financial Chief Commercial Chief Operating Chief Strategy, Planning Chief People General Counsel & Group Officer Officer Officer Officer & Development Offic
Slide 5: Welcome
WELCOME Leslie Van De Walle Board Chair 5
Slide 6: Introduction
INTRODUCTION Dalton Philips Chief Executive Officer 6
Slide 7: Our objectives for today
Our objectives for today 1 2 3 4 Management Opportunity in Growth Beyond Financial Team Our Core Our Core Targets Highlight the quality and Outline our plans to Share our thinking on Lay out a set of depth of our Management continue to strengthen our opportunities to grow medium-term Team core, driv
Slide 8: The Greencore I joined in 2022
The Greencore I joined in 2022 Where we were… Deep customer Good people Great products relationships BUT Under-investment in Challenging environment Moving from business infrastructure unit structure Financially & emotionally Ambiguity over ambition/ under pressure Weak operating disciplines strateg
Slide 9: In FY23, we laid out our 'horizon' strategy
In FY23, we laid out our ‘horizon’ strategy 1 2 3 Stabilise Rebuild Grow Horizon 1 Horizon 2 Horizon 3 Stabilising Rebuilding Exploring growth the business profitability and opportunities returns CAPITAL MARKETS DAY | FEBRUARY 2025 9
Slide 10: Starting to deliver…
Starting to deliver… Adjusted 97.5 +3% Operating Profit like-for-like revenue growth (FY23-24) £M 76.3 +350bps 72.2 gross margin improvement (FY23-24) +6% UPLH1 improvement (FY23-24) FY22 FY23 FY24 99.2% Return on service level (FY24) Invested Capital 8.4% 8.9% 11.5% CAPITAL MARKETS DAY | FEBRUARY 2
Slide 11: The Greencore I see today: Progress made and significant potential
The Greencore I see today: Progress made and significant potential …where we are Deep customer Good people Great products relationships AND ‘One Greencore’ organisation Infrastructure Delivering on working well investment underway financial goals Commercial and Clarity on ambition and Operational di
Slide 12: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 13: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 14: Our Purpose
Our Purpose Making food is what we do Producing high quality, affordable products every day Leading through taste and innovation Always striving for better CAPITAL MARKETS DAY | FEBRUARY 2025 14
Slide 15: Managing the every day complexity of our business
Managing the every day complexity of our business Innovate & Develop Buy, Make & Sell Deliver & Enjoy >1,000 c.130 c.3.3m >50% new product manufacturing units produced of UK consumers concepts assessed lines operating every day buy a Greencore every year every day product each month c.3,000 >1,800 >
Slide 16: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 17: Our Ambition
Our Ambition To lead the way in convenience food What this means … Leadership in every market we operate in Significant growth in our size and scale Expanding our way of winning Be seen as the company to follow in food Doing business the right way CAPITAL MARKETS DAY | FEBRUARY 2025 17
Slide 18: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People At The Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 19: Cultivating lasting partnerships and creating great food
Cultivating lasting partnerships and creating great food Secure relationships With the top retailers Constant engagement and dialogue 22% % of Volume 49% By Renewal Lasting Timing Partnerships 29% Renewal in <1 year Renewal in 1-3 years Renewal in 3+ years Broad capabilities Experienced team Industr
Slide 20: Driving excellence and making sustainable choices
Driving excellence and making sustainable choices Making Business Easier Delivery Multi-year programme to drive Excellence consistency and simplicity of outcomes Investment of c.£10-15m p.a. Better Future Plan Sustainable Commitment to improve the food system Choices for both people and the planet S
Slide 21: People at the Core
People at the Core Putting People at the Core Operating Model Retention 6pp reduction in voluntary One Greencore attrition Integrated Model (FY23-24) 81% Colleague People management engagement score + system delivered on 2pp vs. UK norm time and on budget Engagement Enabling Technology CAPITAL MARKE
Slide 22: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 23: Our convenience food heartland remains an attractive, growing market
Our convenience food heartland remains an Structural tailwinds attractive, growing market Private Label Convenience store & Forecasted Market Growth Growth footfall growth 2024-29F, Revenue, Nominal 5.6% +70bps +1,141 greater growth in chilled Expected UK convenience private label vs. branded store
Slide 24: Continuing to strengthen our core business
Continuing to strengthen our core business Rigorous returns focus Improvements across categories Impactful interventions FY22 Current run rate Portfolio management 310bps 6/9 0/9 Increase in Group ROIC categories with categories with (FY22-24) negative ROIC negative ROIC Salads Yorkshire Puddings Po
Slide 25: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 26: Growing and expanding beyond our core…
Growing and expanding beyond our core… Large opportunity beyond our core How we will assess opportunities Total Potential Market Size by Area Strategic fit Sustainability Financial trajectory discipline 1. Source: IGD; food-to-go market across coffee, FTG specialists, QSR, supermarket, hypermarket,
Slide 27: Medium-term targets
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Medium-term targets RETURNS Return on Strengthen our Core Grow and Expand >15% invested capital GROWTH Revenue 3-5% growth Deploy and embed the Greencore way of winning PROFITABILITY Adjusted >7% Operating
Slide 28: Our investment case
Our investment case 1 Robust core business that provides a strong platform • Growing convenience food market, with several tailwinds • Leading positions in attractive categories • Long-term strategic customer partnerships • Outstanding innovation credentials • Scale operations, with well invested si
Slide 29: Greencore Today & Our Portfolio
GREENCORE TODAY & OUR PORTFOLIO Nigel Smith Chief Strategy, Planning & Development Officer 29
Slide 30: Three key topics to cover
Three key topics to cover 1 Greencore today Improved returns through 2 portfolio management Introducing ‘Making 3 Business Easier’ CAPITAL MARKETS DAY | FEBRUARY 2025 30
Slide 31: A broad commercial footprint
1 A broad commercial footprint Revenue Split by Category (FY24)1 Revenue Split by Customer (FY24) Yorkshire Puddings Select other customers Quiche Soup & Sauce Direct to Store Other (c.50 Customers) Ambient grocery c.1.2B Sandwiches c.3000 Units manufactured different annually Food to go products /
Slide 32: A well-invested, nationwide network
1 A well-invested, nationwide network Manufacturing sites Regional distribution centres 16 Manufacturing sites 14K colleagues Transport hubs Corporate offices FOOD TO GO OTHER CONVENIENCE FOOD 13 production units 9 production units across 9 sites across 7 sites 9 sandwich units 5 ready meal units 2
Slide 33: Returns-focused portfolio management
2 Returns-focused portfolio management +310bps Increase in Group ROIC (from 8.4% to 11.5%, FY22-24) Relentless returns focus Profitability targets by category Multi-year category strategies Monthly performance management rhythm CAPITAL MARKETS DAY | FEBRUARY 2025 33
Slide 34: Targeted improvement across categories
2 Targeted improvement across categories Key ROIC>WACC Positive ROIC but Negative Category Progress less than WACC ROIC Category Returns Profile Select Examples of Improvement FY22 Current run rate SANDWICHES Integration of Freshtime acquisition READY MEALS Salads Portfolio optimisation & operationa
Slide 35: How we are 'Making Business Easier'
3 How we are ‘Making Business Easier’ Focus on three critical business processes Process Data A B C Technology CAPITAL MARKETS DAY | FEBRUARY 2025 35
Slide 36: Improving our insight to strategy process
3 Improving our insight to strategy process Insight to strategy Concept to launch Plan to deliver Why we are improving our process Select initiatives we are pursuing Enable proactive long-term planning Integrated Business Planning Improve timeliness and accuracy Standard Accounts Format Ensure singl
Slide 37: Key Takeaways: Greencore today & our portfolio
Key Takeaways: Greencore today & our portfolio 1 Greencore holds strategic relationships with every major UK retailer, supported by a well-invested national manufacturing and distribution network 2 Delivered significant improvement in returns, through rigorous portfolio management, with significantl
Slide 38: Commercial Excellence
COMMERCIAL EXCELLENCE Andy Parton Chief Commercial Officer 38
Slide 39: 'One Greencore' partnership with customers
‘One Greencore’ partnership with customers One commercial team Bringing together the best of Greencore e.g., e.g., Category SME expertise Insight & management Retailer staff Technical In-store How we organise training Category activation Customer: Product Insight Plan Sell Buy Supply Chain Single Sa
Slide 40: Our winning commercial model
Our winning commercial model Why our customers choose us B • >99% service levels on daily fresh products • Industry-leading technical, safety and quality credentials A • Proprietary product and technical C innovation • Nationwide direct to store distribution business D • Differentiated insight capab
Slide 41: Broad, secure partnerships with top retailers
Broad, secure partnerships with top retailers Breadth Security Partnership % of Volume Going Through % of Volume By Renewal Timing % of Volume In Joint Models Multi-Category Customers 8% 22% 25% 21% 49% 71% 29% 75% >4+ categories Renewal in <1 year In joint models >2 categories Renewal in 1-3 years
Slide 42: Positioned for disciplined growth
A Positioned for disciplined growth Actions we took Positioned for growth Stepped away from low-returns Hurdle rates for each category contracts defined Embedded process discipline >15% capacity across the network Optimised capacity across our Strong pipeline of new business network for coming years
Slide 43: Room to expand breadth of relationships
A Room to expand breadth of relationships Currently serve Do not serve Categories served by large customer Categories Customer A Customer B Customer C Customer D Customer E Customer F Customer G SANDWICHES READY MEALS AMBIENT GROCERY SALADS SUSHI QUICHE SOUP & SAUCES YORKSHIRE PUDDINGS DIRECT TO STO
Slide 44: Strong pipeline of growth opportunities
Strong pipeline of growth A opportunities Growing with existing customers Growing with new day parts and formats (select examples) (select examples) Breakfast Hot Food to Go Fill Northampton ‘Fortress’ with new categories Further discounter growth 10% growth YoY in breakfast eaten >40% of food to go
Slide 45: A 'Direct to Store' business as a growth enabler
A ‘Direct to Store’ business as a growth enabler National scale and reach… Case study 10,000 400m Number of Asda Express Stores Served daily deliveries to units delivered through c.520 every GB postcode our network each year 487 …meeting unique customer demands… Caters to Minimises Drives small form
Slide 46: Well positioned to take advantage of tailwinds
A Well positioned to take advantage of tailwinds Convenience store & Healthy & Private label growth Premiumisation footfall growth sustainable diets Volume Market Growth +1,141 (Premium Products, 2020-24, CAGR %) 70bps Expected UK convenience store openings over next five years 19% 9% 46% Premium Ch
Slide 47: How we use insight to drive customer growth
B How we use insight to drive customer growth Customer case studies Differentiated insight capabilities • Reset food for now range, space and merchandising • Result: 112 weeks of market outperformance1 Expert insight 12 partners insight partners • Ready meals full range and space reset • Result: +9
Slide 48: How we approach product development
C How we approach product development Redevelopment Innovation (Existing product development) (New product development) 25% 421 £118M of products renovated product innovations of growth driven through in the last year launched last year innovation last year +17% Example – Increase in weekly Example
Slide 49: We have deep culinary expertise
C We have deep culinary expertise Customer awards Our culinary expertise 6 awards won over the past 12 months Collaborative Supplier of the Year Grocery Innovation Supplier of the Year Best Supplier Into Express Product Technical European Supply Partner Award Quality Award Product awards >10 Italian
Slide 50: Improving our Concept to Launch process
C Improving our Concept to Launch process Insight to strategy Concept to launch Plan to deliver Why we are improving our process Select initiatives we are pursuing Reduce cost to develop Product specification data Ensure one source of truth Consistent post-launch review process Reduce manual effort
Slide 51: Focus on input cost management
D Focus on input cost management Approach What we have delivered Greencore Input Inflation vs. Benchmark (Indexed, Sep-23=100) >£1B of total spend Benchmark1 Greencore Deep expertise Boots on the ground Sep- Sep- >80 16 countries visited in FY24 23 24 years of expertise ‘Should Cost’ Strategic 46 am
Slide 52: Key Takeaways: Commercial Excellence
Key Takeaways: Commercial Excellence Effective go to market model, enabled by 1 ‘One Greencore’ structure 2 Secure, long-term partnerships with the UK’s top retailers 3 Well positioned for future growth 4 Outstanding food expertise and credentials, which drive customer retention and growth 5 Focus o
Slide 53: Operational Excellence
OPERATIONAL EXCELLENCE Lee Finney Chief Operating Officer 53
Slide 54: Topics to cover
Topics to cover 1 The Customer Proposition 2 The Cost Opportunity Pool 3 Greencore Operational Excellence CAPITAL MARKETS DAY | FEBRUARY 2025 54
Slide 55: Our Customer Proposition – Safe, Dependable, Agile
Our Customer Proposition – Safe, Dependable, Agile Innovate & Develop Buy, Make & Sell Deliver & Enjoy 400m INDUSTRY 21 units delivered LEADING through logistics network annually technical expertise -31% A or AA grade audits in FY24 >400 reduction in accident frequency 99.2% seamless product rate in
Slide 56: The Cost Opportunity Model
The Cost Opportunity Model The Cost Opportunity Model is our approach to driving lean and efficient operations Identification of losses Attacking of losses Cost Opportunity Losses are attacked Losses are identified through systematic through a diagnostic Pool (£) application of Greencore approach wh
Slide 57: The Cost Opportunity Pool is defined through a diagnostic approach
The Cost Opportunity Pool is defined through a diagnostic approach c.30% New diagnostic approach completed in early FY23 by reset team P&L Diagnostic Approach segments the addressable costs in the business – of which ~30% are targeted as the initial Cost Opportunity Pool to attack over the Total Del
Slide 58: Site-level losses identified using external benchmarks and Lighthouse site model
Site-level losses are identified using external benchmarks and a Lighthouse site model External Cost Opportunity Pool (£) Benchmark or Internal Stretch Lighthouse site Target Selection of plants Targets are set for individual KPIs (e.g. water consumption through tray wash) through benchmarking withi
Slide 59: Cost base attacked through the Greencore Operational Excellence Model
Cost base is attacked structurally through the Greencore Operational Underpinned by five Excellence (GOE) Model key enablers: Making Operational P&L Diagnostic A Business Excellence Pillar Easier (MBE) Deployment E Org Design & Culture B Management Control Overhead Automation & Reporting System Opti
Slide 60: Deploying a best practice Pillar Framework
A Deploying a best practice Pillar Framework… Focused improvement example Initial launch For future deployment Costs Direct Labour Deploying global best practice playbooks for value + M&A Indirect Labour Waste Overheads CAPITAL MARKETS DAY | FEBRUARY 2025 60
Slide 61: Delivering early results
A … delivering early results Site Greencore improvement improvement New Operational Ready Meals Line Balancing: Excellence SKU-line matrix & bottleneck removal to leadership maximise usage of higher-speed 95 100 Labour established FY23 automated lines with lower labour costs units per labour Combine
Slide 62: The next phase of automation
B The next phase of automation Phase 1 (Delivered) Phase 2 (Future Pipeline) Bespoke OEMs University Partners Existing New to world technology technology Ultra-sonic wrap cutting Zero-touch sandwich line Industrial OEMs Early-Stage Ventures • First wave of automation has been delivered – including •
Slide 63: Our multi-site network drives efficiency
C Our multi-site network drives efficiency • Optimising to ensure every product is being made in the Warrington Optimising most efficient place – accounting for complexity, capacity in quantity, run length, logistics and plant specialism Ready Kiveton Wisbech Meals • Creation of capacity through eff
Slide 64: Driving overhead optimisation
D Driving overhead optimisation Total Delivered Cost (TDC) Flat Ambition Indirect Labour Optimisation Best Practice Headcount (internal) • Operational Excellence Pillar Deployment Management • Automation Inflation Plant/ Supervision Engineering Quality Headcount Classifications 1.15 • Network Optimi
Slide 65: Improving our Plan to Deliver process
E Improving our Plan to Deliver process Insight to strategy Concept to launch Plan to deliver Why we are improving our process Enterprise processes we are digitising Reduce manual effort, time and waste End-to-end Supply Workforce Chain Planning Planning Drive action with real-time insights Create a
Slide 66: Much more opportunity to go after
Much more opportunity to go after Direct Labour Indirect Labour Materials Waste Overheads Cost FY23 FY24 FY25 FY26 FY27 and Opportunity Pool beyond • Develop 3-year Vision and Masterplans by plant • Establish new Operational (including Operational Excellence, Capex / Excellence model and Automation
Slide 67: Key Takeaways: Operational Excellence
Key Takeaways: Operational Excellence Compelling customer proposition which is extremely 1 hard to replicate Systematically targeting inefficiency and waste, 2 deploying Greencore Operational Excellence model 3 Strong team with a track record of delivering results 4 New functional model driving ‘One
Slide 68: Q&A #1
Q&A #1 Focus on strengthening our core business
Slide 69: Strategy in Action Showcases
STRATEGY IN ACTION SHOWCASES 69
Slide 70: Today's agenda
Today’s agenda Topic Welcome & introduction Speaker(s) Dalton Philips, Chief Executive Officer Greencore today & our portfolio Nigel Smith, Chief Strategy, Planning and Development Officer Commercial Excellence Andy Parton, Chief Commercial Officer Operational Excellence Lee Finney, Chief Operating
Slide 71: Sustainability Strategy
SUSTAINABILITY STRATEGY Fran Haycock Head of Sustainability 71
Slide 72: Our Better Future Plan
Our Better Future Plan Sourcing with integrity Making with care Feeding with pride Sourcing from a sustainable Playing a positive role in Reducing our operational impact and fair supply chain society Human Net Zero Healthy & Responsible Rights in Operations Food Water Sustainable Sustainable Sourcin
Slide 73: Our Targets
Our Targets Sourcing with integrity Making with care Feeding with pride • Scope 1 & 2 Carbon (46% reduction by • Scope 3 carbon 2030)1 • ‘Health’ of products • Key ingredients • Food Waste (50% reduction by 2030)2 • Using ‘better’ plastic (palm oil, seafood, • Water Usage (3.5% reduction in 2025)3 •
Slide 74: Hear from our Leaders
Hear from our Leaders Sourcing with integrity Making with care Feeding with pride Andy Thompson Steve Switzer Rachel Smith Group Procurement Group Manufacturing & Group Head of Director Engineering Director Innovation CAPITAL MARKETS DAY | FEBRUARY 2025 74
Slide 75: Key Takeaways: Sustainability strategy
Key Takeaways: Sustainability strategy 1 Sustainability underpins our current and future business model and approach 2 We’ve created strong foundations through embedding sustainability in our processes, systems and incentive programmes 3 Momentum is strong and the business is mobilised around achiev
Slide 76: Growth & Expansion
GROWTH & EXPANSION Nigel Smith Chief Strategy, Planning & Development Officer 76
Slide 77: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 78: The Greencore Way underpins our right to win as we grow
The Greencore Way underpins our right to win as we grow Strong relationships with every major retailer £1,000,000,000 procurement leverage Organic growth Deep product & technical expertise Transferable operational capability Inorganic growth >15% available manufacturing capacity Unique distribution
Slide 79: Today we play in a tightly defined part of the convenience food market
Today we play in a tightly defined part of the convenience food market CHANNELS CATEGORIES COUNTRIES of sales of sales in of sales from chilled 85% in major multiples 69% food-to- 99% product sold in the go UK CAPITAL MARKETS DAY | FEBRUARY 2025 79
Slide 80: We see ample opportunity
We see New channels New categories ample c. £50bn opportunity c. £25bn market1 Consolidation market2 to diversify and grow Near-term focus c. £2bn revenue wi e itnhitn t e ceor he hcor Medium- term focus c. £50bn market3 New countries 1. Source: IGD; food-to-go market across coffee, FTG specialists,
Slide 81: Channels: Opportunities to diversify exposure
Channels: Opportunities to diversify exposure Key value levers for category growth: Coffee Expansion of existing specialists relationships with coffee players Procurement scale ‘Retailisation’ of petrol forecourts Travel – supported by current retail Opportunities Product & customers for both techni
Slide 82: Categories: Opportunities across the UK convenience food market
Categories: Opportunities across the UK convenience food market Key value levers for £54bn 94 categories that Greencore does category growth: Value of the not play in total UK Commercial convenience relationships of these growing food market1 54 at >7% CAGR £11bn (value)2 Value of all Procurement £2
Slide 83: Countries: Opportunities to expand in adjacent geographies
Countries: Opportunities to expand in adjacent geographies Key value levers for category growth: Our UK Our mid-term footprint today ambitions Commercial relationships • Greencore’s current footprint is Organic a product of 9 UK acquisitions • Some modest opportunities to • FTG growth in the 2010s d
Slide 84: Our approach to investment
Our approach to investment Expansion into new channels, categories and countries can accelerate our strategy through: Disciplined expansion Strategic ambitions, grounded in our fit ‘right to win’ Progressive investment, growing in one ‘C’ at a time, while leveraging our current Sustainability Financ
Slide 85: Key Takeaways: Growth & Expansion
Key Takeaways: Growth & Expansion 1 We have a strong platform – The Greencore Way underpins our right to win 2 We see material expansion opportunity into new categories, channels and countries 3 We will invest progressively and with discipline, within clear guardrails 85
Slide 86: Financial Trajectory
FINANCIAL TRAJECTORY Catherine Gubbins Chief Financial Officer 86
Slide 87: Our Purpose and Ambition
Our Purpose: Our Ambition: To lead the way in convenience food Build a strong growth portfolio Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Lasting Partnerships Great Food Delivery Excellence Sustainable Choices People at the Core CAPITAL MARKETS DAY | FEBRUARY 2
Slide 88: Key areas of further guidance
Key areas of further guidance 1 Returns on Invested Capital 2 Revenue Growth 3 Adjusted Operating Profit Margin 4 Cash Conversion & Leverage 5 Capital Allocation CAPITAL MARKETS DAY | FEBRUARY 2025 88
Slide 89: Good momentum in performance
Good momentum in performance ROIC % Revenue £m Adjusted Operating Profit £m Adjusted Operating Margin % 14.4% 11.5% 7.3% 1,914 105.5 1,807 1,740 97.5 8.9% 8.4% 5.4% 1,446 76.3 72.2 4.2% 4.0% FY19 FY22 FY23 FY24 FY19 FY22 FY23 FY241 FY19 FY22 FY23 FY24 FY19 FY22 FY23 FY24 CAPITAL MARKETS DAY | FEBRUA
Slide 90: Our medium-term organic targets
Our medium-term organic targets RETURNS >15% Return on invested capital GROWTH OPERATING MARGIN CASH CONVERSION TARGET LEVERAGE 3-5% >7% >55% 1-1.5x Revenue growth Adjusted operating Free cash flow Net Debt/Adjusted EBITDA profit margin1 conversion2 1. Adjusted Operating Profit defined as operating
Slide 91: How we plan to drive revenue growth
How we plan to drive revenue growth Revenue 3-5% Growth (%) £1.8B Note: Bar sizing is illustrative FY24 Volume Price & Mix Medium-Term Target Market growth and Premiumisation tailwinds across categories Value Drivers Expanding breadth of business with customers Inflation recovery Continued innovatio
Slide 92: Clear understanding of margin evolution
Clear understanding of margin evolution Embedding a culture of How margin evolved since FY19 cost management FY19 Adjusted Operating Margin 7.3% • Strict governance on adding new costs to the business Input and Direct Labour Inflation - - - • Weekly detailed P&L and business Inflation Recovery + + p
Slide 93: How we plan to drive margin forward
How we plan to drive margin forward Adjusted >7% Operating Profit Margin (%) 5.4% Note: Bar sizing is illustrative FY24 Inflation Inflation Commercial Operational Further Cost Medium-Term Offset Excellence Excellence Effectiveness Target Low to mid- Joint models Operating OpEx pillar Culture of cost
Slide 94: How we plan to drive cash conversion forward
How we plan to drive cash conversion forward Cash Conversion (%) >55% 46% Note: Bar sizing is illustrative FY24 Working Capital Reduced DB Interest, Tax, Medium-Term Efficiency Contributions Exceptionals Target Drive working Agreement with UK Reported Effective capital efficiencies trustees to cease
Slide 95: Disciplined approach to M&A
Disciplined approach to M&A M&A criteria Key lens for M&A Strategic fit Accretive to Group ROIC Sustainability Financial trajectory discipline CAPITAL MARKETS DAY | FEBRUARY 2025 95
Slide 96: Capital allocation to maximise shareholder value
Capital allocation to maximise shareholder value 1 • Investing to enable growth in core Organic Growth • £50M of capital investment per year (maintenance and strategic) 2 • Continuation of progressive Dividend dividend Capital Allocation 3 Framework Inorganic • Disciplined M&A to support growth Grow
Slide 97: Key Takeaways: Financial trajectory
Key Takeaways: Financial trajectory 1 We have a strong balance sheet and focus on cash conversion 2 We have clear medium-term financial targets • >15% ROIC • 3-5% digit revenue growth • >7% adjusted operating profit • >55% cash conversion • 1-1.5x net debt/EBITDA 3 Clear capital allocation to maximi
Slide 98: Q&A #2
Q&A #2
Slide 99: Closing Remarks
CLOSING REMARKS Dalton Philips Chief Executive Officer 99
Slide 100: Closing thoughts
Closing thoughts Strong team Scalable way of winning Lots of opportunity Stretching financial targets Ambition and momentum to go after it CAPITAL MARKETS DAY | FEBRUARY 2025 100