Slide 1: Q1 2022 Results
Q1 2022 Results May 24, 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 and industry conditions. These forward-looking statements are subject to various risks and uncertainties that may cause actual results to dif
Slide 3: Agenda
Agenda Q1’22 Operational Financial Highlights Review Review FY’22 Q&A Appendices Outlook Q1 2022 Financial Results 3
Slide 4: Speakers Today
Speakers Today Rory Byrne Johan Lindén Frank Davis CEO COO CFO Q1 2022 Financial Results 4
Slide 5: Q1'22 Highlights
Q1’22 Highlights
Slide 6: Q1'22 Highlights
Q1’22 Highlights Revenue • Increase in revenue to $2.2bn following acquisition of DFC Q1’22 Q1’21 Q1’21 • Marginally behind prior year pro-forma comparative Pro-forma due to impact of Value Added salads recall $2.2bn $1.1bn $2.3bn • Price increases in response to significant cost inflation • Negativ
Slide 7: Operational Review
Operational Review
Slide 8: Operational Review – Q1'22
Operational Review – Q1’22 • Closure of product recall investigation and return to full capacity • Recall, strong prior year comparatives and currency translation impact Q1 but diversification benefits also clear • Operational adjustments to react to evolving economic and geopolitical environment •
Slide 9: Financial Review
Financial Review
Slide 10: Group Results
Group Results Revenue $’bn Financial Commentary -0.9% • Q1’22 results in line with expectations 2,265.8 2,245.0 • Q1’22 revenue decreased marginally • Decrease driven by impact of Value Added salads product recall, offset by higher pricing across all segments Q1'21 (PF) Q1'22 • Negative foreign curr
Slide 11: Group Results
Group Results Q1’22 Q1’21 Q1’21 Pro-forma Revenue - $’m 2,245.0 1,051.1 2,265.8 Adjusted EBITDA - $’m 81.5 79.2 131.1 Adjusted Net Income - $’m 28.2 25.9 58.8 Adjusted Diluted EPS - $ 0.30 0.46 0.62 Q1 2022 Financial Results 11
Slide 12: Segmental Results
Segmental Results $’m Q1’22 Q1’21 Pro-forma Adjusted Adjusted Revenue EBITDA Revenue EBITDA Fresh Fruit 749.8 61.8 744.6 91.6 Diversified Fresh Produce – EMEA 791.1 20.1 793.7 24.9 Diversified Fresh Produce – Americas & ROW 463.7 12.3 421.7 10.1 Fresh Vegetables 274.8 (12.7) 327.7 4.5 Intersegment (
Slide 13: Fresh Fruit
Fresh Fruit Revenue $’m Financial Commentary +0.7% • Q1’22 revenue increased primarily due to higher pricing 744.6 749.8 in North America and Europe • Continued strong performance by commercial cargo business • Q1’22 Adjusted EBITDA decreased 32.5% against a strong comparator in Q1’21 driven by favo
Slide 14: Diversified Fresh Produce EMEA
Diversified Fresh Produce EMEA Revenue $’m Financial Commentary -0.3% • Q1’22 revenue in line with prior year 793.7 791.1 • On a like for like basis, excluding the $59.0m impact of foreign currency movements and M&A, revenue increased c. 7% • Q1’22 Adjusted EBITDA decreased 19.3%, primarily due to u
Slide 15: Diversified Fresh Produce Americas & ROW
Diversified Fresh Produce Americas & ROW Revenue $’m Financial Commentary +10.0% • Q1’22 revenue increased 10.0% on prior year, driven by 463.7 higher average selling prices, particularly cherries, and 421.7 higher volumes • Q1’22 Adjusted EBITDA increased 21.8% driven by a strong recovery in Chilea
Slide 16: Fresh Vegetables
Fresh Vegetables Revenue $’m Financial Commentary -16.2% • Q1’22 revenue decreased 16.2% primarily due to the impact of the Value Added salads product recall and 327.7 temporary plant closures in January and February which 274.8 resulted in lower volumes • Stronger pricing in Fresh Packed Vegetables
Slide 17: Capital Allocation and Leverage
Capital Allocation and Leverage Invest in our Capex Q1’22: $17.3m business to drive long term growth Commitment to Q1’22: $0.08 per Dividend return cash to share shareholders Maintain leverage Leverage Q1’22: 3.75x in line with targeted level: 3.0x Q1 2022 Financial Results 17
Slide 18: FY'22 Outlook
FY’22 Outlook
Slide 19: FY'22 Outlook
FY’22 Outlook Prior Indication Revised Revenue $9.6bn - $9.9bn $9.4bn - $9.7bn Adjusted EBITDA $370m - $380m $350m - $370m Capital Expenditure ~$125m Unchanged Net Interest Expense ~$45m Unchanged Adjusted Effective Tax Rate ~25% - 28% ~23% - 27% Q1 2022 Financial Results 19
Slide 20: FY'22 Strategic Priorities
FY’22 Strategic Priorities • Focus on operating costs, integration and synergies • Continue to re-build Value Added salads profitability • Continue to focus on fast growing categories – Berries, Avocados, Organic Produce • Continue to seek out value enhancing acquisition opportunities • Continue to
Slide 21: Q&A
Q&A
Slide 22: Appendix I – Dole plc Overview
4 Appendix | = Dole pic Overview
Slide 23: 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 24: 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 Source: Nielsen 2019-2021 Dollar and Volume CAGR for Key Produce Categories & Perimeter Departments in U.S. Note: Bananas and Pineapples leadership figures are Dole estimated Latin sourced fruit (inc
Slide 25: 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 26: Strategic Asset Base
Strategic Asset Base • Highly valuable strategic asset base, including over 250 facilities • Over 114,000 acres of owned farms and other land ~160 ~75 Distribution holdings Packing and Houses Manufacturing Facilities • Owned acreage combined with a multi-continental 12 sourcing model enables operati
Slide 27: Divisional Overview
Divisional Overview DIVERSIFIED DIVERSIFIED FRESH FRESH PRODUCE – FRESH FRESH PRODUCE - FRUIT EMEA AMERICAS & ROW VEGETABLES #1 in North America and #2 in Strong network of 100+ sales, Extensive sales and marketing A leader in Fresh Packed Europe for conventional and capabilities throughout the Vege
Slide 28: Experienced Executive Management and Board of Directors
Experienced Executive Management and Board of Directors Management team supported by a global Years of base of over 38,500 Produce employees across 29 Experience countries 42 34 22 38 12 26 Carl McCann Rory Byrne Johan Lindén Frank Davis Jared Gale Jacinta Devine Chairman CEO COO CFO Chief Legal Off
Slide 29: 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 30: 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 31: 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 32: Sustainability Integration
Sustainability Integration • Dole plc will finalize a new combined set of goals, framework and materiality assessment during the first Lowest Ecological Footprint(1) half of FY’22 • Dole plc will disclose its emissions as a combined entity to CDP for the first time in 2022 Lowest Water • Data will i
Slide 33: Appendix II
Appendix II Additional Financial Information
Slide 34: Condensed Balance Sheet (unaudited)
Condensed Balance Sheet (unaudited) 31-Mar-22 31-Dec-21 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents 215,948 250,561 Trade receivables, net of allowances 785,626 719,114 Grower advance receivables, net of allowances 102,709 72,350 Other receivables, net of allowances 137,162 125,908
Slide 35: Reconciliation of Adjusted EBITDA to Net Debt
Reconciliation of Adjusted EBITDA to Net Debt Quarter Ended Mar 31, 2022 Mar 31, 2021 U.S Dollars in millions Adjusted EBITDA 81.5 79.2 Deduct EBITDA of equity method investments (4.0) (51.0) Net Interest paid (9.9) (1.1) Tax paid (13.5) (1.5) Other 1.0 1.2 Operating cash flows before working capita
Slide 36: Appendix III
Appendix III Reconciliation of Non-GAAP Financial Measures to Related GAAP Measures
Slide 37: 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 EBITDA, Adjusted Net Income, Adjusted EPS, pro-forma EBIT, pro-forma Ad
Slide 38: Non-GAAP Measures (continued)
Non-GAAP Measures (continued) Pro-forma Adjusted Net Income is calculated from pro-forma net income (loss) attributable to Dole plc by: (1) adding intangible asset amortization charges; (2) adding merger, transaction and other related costs; (3) adding net unrealized loss or subtracting the net unre
Slide 39: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation from Net Income to Adjusted EBITDA Three Months Ended Mar 31, 2022 Mar 31, 2021 Mar 31, 2021 Pro-forma (U.S. Dollars in thousands) Net income 3,285 26,115 63,196 Interest expense 11,644 2,252 11,292 Income tax expense 420 1,256 23,991 EBIT 15,349 29,623
Slide 40: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Reconciliation from Net (Loss) Income attributable to Dole plc shareholders to Adjusted Net Income Three Months Ended Mar 31, 2022 Mar 31, 2021 Mar 31, 2021 Pro-forma (U.S. Dollars and shares in thousands, except per share amounts) (Loss) income for the financial y
Slide 41: Net Debt and Financial Leverage
Net Debt and Financial Leverage $’m Mar 31, 2022 Cash and cash equivalents (215.9) Bank overdrafts 15.9 Notes payable and current portion of long-term debt, net 83.8 Long-term debt, net 1,387.9 1,271.7 Less: Debt discounts and debt issuance costs 19.9 Net Debt 1,291.6 Pro-Forma LTM Adjusted EBITDA 3