Slide 1: Q3 2022 Results
Q3 2022 Results November 17, 2022
Slide 2: Disclaimer
Disclaimer Today’s presentation includes forward-looking statements that reflect Dole plc’s current views with respect to future events, financial performance, expected synergies and industry conditions. These statements are not statements of historical fact. The words "believe," "may," "could," "wi
Slide 3: Agenda
Agenda Q3’22 Operational Financial Highlights Review Review FY’22 Q&A Appendices Outlook Q3 2022 Financial Results November 17, 2022 3
Slide 4: Speakers Today
Speakers Today Rory Byrne Johan Lindén Jacinta Devine CEO COO CFO Q3 2022 Financial Results November 17, 2022 4
Slide 5: Q3'22 Highlights
Q3’22 Highlights
Slide 6: Q3'22 Highlights
Q3’22 Highlights Revenue Q3’22 Q3’21 Q3’21 • Strong results delivered in Q3’22 Pro-forma • Revenue in line with pro-forma comparative $2.3bn $1.9bn $2.3bn • On a like-for-like basis1, revenue increased Adjusted EBITDA 5.0% compared to pro-forma comparative Q3’22 Q3’21 Q3’21 • Adjusted EBITDA increas
Slide 7: Operational Review
Operational Review
Slide 8: Operational Review – Q3'22
Operational Review – Q3’22 • Fresh Fruit – H2’22 progressing well • Diversified Fresh Produce o EMEA – Strong performance across the segment o Americas & ROW - Specific one-off supply chain challenge in Chile stands out from an otherwise robust performance • Fresh Vegetables - Underlying progress be
Slide 9: Financial Review
Financial Review
Slide 10: Group Results
Group Results -2.3% Revenue $’m Financial Commentary 7,034.2 6,872.7 • 1.7% decrease in Q3’22 reported revenue • $154.7m reduction to revenue compared to pro- forma comparative due to $136.8m impact of -1.7% currency translation and $17.9m net M&A activity, 2,306.0 2,267.5 both primarily within Dive
Slide 11: Group Results
Group Results Q3’22 Q3’21 Q3’21 YTD’22 YTD’21 YTD’21 Pro-forma Pro-forma Revenue - $’m 2,267.5 1,942.2 2,306.0 6,872.7 4,202.9 7,034.2 Net Income - $’m 46.6 (21.6) 35.9 98.4 41.4 177.1 Net Income attributable to Dole plc - $m 39.8 (28.5) 28.6 79.7 22.0 155.8 Diluted EPS - $ 0.42 (0.35) 0.30 0.84 0.3
Slide 12: Segment Results
Segment Results $’m Q3’22 Q3’21 YTD’22 YTD’21 Pro-forma Pro-forma Adjusted Adjusted Adjusted Adjusted Revenue EBITDA Revenue EBITDA Revenue EBITDA Revenue EBITDA Fresh Fruit 751.3 51.1 672.7 17.0 2,307.0 170.9 2,196.1 194.3 Diversified Fresh Produce – 760.0 31.6 877.4 35.9 2,401.0 91.1 2,623.0 101.8
Slide 13: Fresh Fruit
Fresh Fruit Revenue $’m +5.0% Financial Commentary 2,307.0 • Revenue increased 11.7% in Q3’22 compared to the prior 2,196.1 year pro-forma comparative • Increase driven by higher worldwide banana pricing and +11.7% higher pricing in commercial cargo, offset by lower volumes 672.7 751.3 of bananas in
Slide 14: Diversified Fresh Produce EMEA
Diversified Fresh Produce EMEA Revenue $’m -8.5% Financial Commentary 2,623.0 2,401.0 • 13.4% decrease in revenue for Q3’22 against pro-forma comparative driven by $134.9m impact of currency translation and $17.9m impact from net M&A activity -13.4% 877.4 • On a like-for-like basis, revenue increase
Slide 15: Diversified Fresh Produce Americas & ROW
Diversified Fresh Produce Americas & ROW Revenue $’m +7.1% Financial Commentary 1,391.7 1,299.4 • Revenue increased by 5.8% in Q3’22 compared to the pro-forma comparative +5.8% • Increase was driven primarily by higher overall average 453.7 479.8 selling prices, particularly in the North American ma
Slide 16: Fresh Vegetables
Fresh Vegetables Revenue $’m -9.4% Financial Commentary 983.7 890.8 • Revenue decreased 5.2% in Q3’22 primarily due to lower volumes of value added salads, partially offset by significantly stronger pricing in fresh packed products, as -5.2% well as by improved pricing in value added salads 323.8 30
Slide 17: Capital Allocation and Leverage
Capital Allocation and Leverage Q3’22: $27.2m Invest in our Capex business to drive YTD’22: $66.6m long term growth Commitment to Q3’22: $0.08 Dividend return cash to per share shareholders Maintain leverage Leverage Q3’22: 3.40x (1) in line with targeted level: 3.0x Q3 2022 Financial Results (1) Ba
Slide 18: Equity Valuation Overview
Equity Valuation Overview Highly valuable strategic asset base not being fully recognized in current equity valuation • Significant value in Dole plc fixed asset Asset division base not being fully recognized by the Net PP&E 1, 2 $1,323m market • Analyzing the component parts of Dole Less: Net Debt
Slide 19: FY'22 Outlook
FY’22 Outlook
Slide 20: FY'22 Outlook
FY’22 Outlook Prior Indication Current Guidance Revenue $9.1bn - $9.4bn Unchanged Adjusted EBITDA $330m - $350m Lower end of range Capital Expenditure ~$110m ~$95m Interest Expense ~$60m Unchanged Adjusted Effective Tax Rate ~23% - 25% Unchanged Q3 2022 Financial Results November 17, 2022 20
Slide 21: Strategic Priorities
Strategic Priorities • Turnaround of our value added salads business • Efficiently managing our operating costs in a high inflation environment • Maintain disciplined approach to capital allocation • Continued integration of our businesses and the delivery of targeted synergies • Continuing our focu
Slide 22: Q&A
Q&A
Slide 23: Appendix I – Dole plc Overview
4 Appendix | = Dole pic Overview
Slide 24: A Global Leader in Fresh Produce
A Global Leader in Fresh Produce • We produce, market and distribute an extensive 2021 2021 variety of fresh fruits and vegetables Pro-Forma Pro-Forma Adj Revenue EBITDA • Our produce is sourced both locally and from around $9.3bn $393.6m the world from our deep sourcing network • Sales in over 75 c
Slide 25: Leadership Position in Key Segments Combined with Enhanced Presence in Attractive Growing Categories
Leadership Position in Key Segments Combined with Enhanced Presence in Attractive Growing Categories Q3 2022 Source: Nielsen 2019-2021 Dollar and Volume CAGR for Key Produce Categories & Perimeter Departments in U.S. Financial Results Note: Bananas and Pineapples leadership figures are Dole estimate
Slide 26: Global Reach & Resources
Global Reach & Resources Global Facilities 254 Northern Europe 89 Marketplace Operations CZECH REP. SLOV FRANC AKIA E Ripening North Centres America Rest of 34 World 9 Global footprint Southern INDI A enables diversified 13 Europe 23 sourcing, improves customer fulfilment Salads and reduces risk Pla
Slide 27: Multi-Faceted Strategy for Sustainable Long-Term Growth
Multi-Faceted Strategy for Sustainable Long-Term Growth Continue to focus on synergistic Expand market M&A in a penetration across fragmented and global footprint – “Grow the Core” growing market Grow Expand market share presence in faster from continued growing categories: product innovation Avocad
Slide 28: Significant Synergy Potential
Significant Synergy Potential PRODUCTS REGIONS SOURCING LOGISTICS Accelerated strategic Increased collaboration Collaborative sourcing from Increased collaboration development of high growth between Total Produce and key production regions in across inland freight and products such as Avocados, Dole
Slide 29: Continuous Deep Commitment to Sustainability
Continuous Deep Commitment to Sustainability ENVIRONMENTAL ETHICAL & SOCIAL ECONOMIC Energy Water & soil Waste Nutrition Our Communities people Food safety Risk management Reduce, Remove, Promotion, Nurture & Investment, Reduction & Recycle & Reduce & Sponsorship & Develop Support & Structure Strate
Slide 30: Sustainability Integration
Sustainability Integration • Dole plc will publish a new combined set of goals, framework and materiality assessment in the second half of FY’22 • Dole plc will disclose its emissions as a combined entity to CDP for the first time in 2022 • Data will include Scope 1 and 2 emissions for 2020 (baselin
Slide 31: Appendix II – Additional Financial Information
Appendix II Additional Financial Information
Slide 32: Condensed Balance Sheet (unaudited)
Condensed Balance Sheet (unaudited) Sep 30, 2022 Dec 31, 2021 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents $ 221,476 $ 250,561 Trade receivables, net of allowances 567,931 719,114 Grower advance receivables, net of allowances 149,086 72,350 Other receivables, net of allowances 156,08
Slide 33: Reconciliation of Adjusted EBITDA to Net Debt
Reconciliation of Adjusted EBITDA to Net Debt Nine Months Ended Sep 30, 2022 Sep 30, 2021 (U.S Dollars in millions) Adjusted EBITDA $ 263.3 $ 229.0 Deduct EBITDA of equity method investments (17.0) (113.4) Net Interest paid (39.7) (24.4) Tax paid (39.6) (19.5) Other 7.5 0.9 Operating cash flows befo
Slide 34: Appendix III
Appendix III Reconciliation of Non-GAAP Financial Measures to Related GAAP Measures
Slide 35: Non-GAAP Measures
Non-GAAP Measures Dole plc’s results are determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In addition to its results under U.S. GAAP, in this Press Release we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Adjusted Effe
Slide 36: Non-GAAP Measures (continued)
Non-GAAP Measures (continued) Pro-forma EBIT is calculated from pro-forma net income by adding pro-forma interest expense and adding the pro-forma income tax expense or subtracting the pro-forma income tax benefit, as well as including the following pro-forma adjustments: (1) subtracting mark to mar
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation from Net Income to Adjusted EBITDA for the three months ended September 30, 2022 - Unaudited Three Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2021 Pro-forma (U.S. Dollars in thousands) Net income (Reported GAAP) $ 46,604 $ (21,563) $ 35,904 Income ta
Slide 38: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation from Net Income to Adjusted EBITDA for the nine months ended September 30, 2022 - Unaudited Nine Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2021 Pro-forma (U.S. Dollars in thousands) Net income (Reported GAAP) $ 98,385 $ 41,384 $ 177,054 Income tax (
Slide 39: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Reconciliation from Net Income attributable to Dole plc shareholders to Adjusted Net Income - for the three months ended September 30, 2022 - Unaudited Three Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2021 Pro-forma (U.S. Dollars in thousands, except per share
Slide 40: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Reconciliation from Net Income attributable to Dole plc shareholders to Adjusted Net Income - for the nine months ended September 30, 2022 - Unaudited Nine Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2021 Pro-forma (U.S. Dollars in thousands, except per share am
Slide 41: Trailing Twelve Month Pro-Forma Adjusted EBITDA
Trailing Twelve Month (“TTM”) Pro-Forma Adjusted EBITDA (US Dollars in thousands) Full year 2021 GAAP reported net income $ 16,808 9 months to September 30, 2021 GAAP reported net income 41,384 3 months to December 31, 2021 GAAP net income (24,576) Pro-forma adjustments: Difference in tax expense ar
Slide 42: Net Debt
Net Debt $’m Sep 30, 2022 Cash and cash equivalents $ 221.5 Debt (Reported GAAP) Bank overdrafts (20.3) Current maturities (79.0) Long-term debt, net (1,208.2) Total debt, net (1,307.4) Less: Debt discounts and debt issuance costs (Reported GAAP) (18.7) Total gross debt (1,326.1) Net Debt (Non-GAAP)
Slide 43: Financial Statements to Pro-Forma Reconciliation
Financial Statements to Pro-Forma Reconciliation Reconciliation from Statutory Reported Revenue to Pro-Forma Revenue Three Months Ended Nine Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021 (U.S. Dollars in thousands) Revenue per financial statements of Dole plc (Reported GAAP) $ 2,2
Slide 44: Financial Statements to Pro-Forma Reconciliation
Financial Statements to Pro-Forma Reconciliation Reconciliation from Statutory Reported Adjusted EBITDA to Pro-Forma Adjusted EBITDA Three Months Ended Nine Months Ended Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021 (U.S. Dollars in thousands) Adjusted EBITDA per financial statements of Dole p