Libstar Holdings Ltd. · JSE:LBR
Libstar — Investor Day (2022)
37 slides from Libstar's investor day presentation, 2022
Slide 1: Lancewood Overview
2022 Quarter 3 THE LIBSTAR FAMILY Executive Meeting From our Home to Yours LANCEWOOD OVERVIEW
Slide 2: Agenda
2 AGENDA 1 BUSINESS TIMELINE 2 REVENUE EVOLUTION 3 FACTORY LOCATIONS 4 FOCUS AREAS 5 CAPITAL PROJECTS 6 CATEGORIES 7 MARKETING 8 INNOVATION
Slide 3: Business Timeline
BUSINESS TIMELINE 1996 2008 2013 2016 2018 2019 2021 2022 ESTABLISHED ACQUIRED PARTNER PRINCIPAL ACQUIRED BEL LOCAL HARD CHEESE GRATING AND WITH BRANDS SONNENDAL PRODUCTION PRE-PACK DICING LINE HOCHLAND AUTOMATION UPGRADE . ACQUIRED AND LANGEBERG CAPACITY UPGRADE CHEESE & UPGRADE YOGHURT CAPACITY FA
Slide 4: Revenue Evolution
REVENUE EVOLUTION 4 SINCE LIBSTAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 RETAIL FSI INDUSTRIAL FACTORY SHOP EXPORTS CAGR : 18% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HARD CHEESE SOFT CHEESE PROCESSED YOGHURT BUTTER MILK AND CREAM BEVERAGE
Slide 5: Factory Locations
FACTORY LOCATIONS "Our production facilities are strategically positioned in key milk producing regions." Ourfactories arestrategically positionedinkey milkproducingareas CAPE TOWN SWELLENDAM GEORGE CAPE TOWN SWELLENDAM GEORGE
Slide 6: Focus Areas 2022 & 2023
FOCUS AREAS 6 2022 & 2023 1. PROTECT . MILK SOURCE 2. RETURN ON CAPITAL PROJECTS MARGIN PROTECTION 3. WORKING CAPITAL Through Price realisation, production efficiencies and 4. Optimising inventory levels while safe-guarding against cost containment. supply chain disruptions. PRODUCTION 5. SERVICE CU
Slide 7: Major Capital Projects
MAJOR CAPITAL PROJECTS 7 1 SONNENDAL ACQUISITION 2 BEL LOCAL MANUFACTURING NEW MILK PROCUREMENT AREA OVERCOME IMPORT & REGULATORY BARRIERS PROXIMITY TO RETAILER DISTRIBUTION CENTRES ADAPT TO LOCAL PREFERENCES NEW MANUFACTURING CAPABILITIES ACCELERATE TIME TO MARKET ENTER THE YOGHURT CATEGORY IMPROVE
Slide 8: 8
8
Slide 9: Portfolio
PORTFOLIO 9 BRANDS OWN BRANDS: PRIVATE LABEL BRANDS: PRINCIPAL BRANDS: BEL GROUP ARLA FOODS
Slide 10: Lancewood Retail Portfolio
LANCEWOOD RETAIL PORTFOLIO Mozeanth aay gs ——— = | 600g 450g 300g 2258 Ball 200g Grated 175g & 350g Slices seers 230g Medium Fat Cream Cheese ag neu 1kg Double Cream Yoghurt 1kg Low Fat Yoghurt 225ml Drinking Yoghurt Double Cream Multipacks Buttermilk
Slide 11: Lancewood FSI Portfolio
LANCEWOOD FSI PORTFOLIO Hard Cheese Loaves Grated & Diced Cheese —— ——— tage Ls] ofl lloe otitis , =" a agar , =<“ i EE | oe Cream Cheese Cottage Cheese Cream Products oovei cea . sous r sours r = ek aS oA Sheen EA aE, su aueer ‘YOGHURT ees FLAVOURED YOGHURT 2
Slide 12: Sonnendal Portfolio
SONNENDAL PORTFOLIO —_— — —_ —-_ ~S~———— — a a | T ‘oom ‘oom cont low fat low fat : yea frit 12s Yoghurt Multipacks - Dairy Snack Multipacks - Low Fat Yoghurt - ikg, 500g & 150g Drinking Yoghurt — 250ml 6x100g 6x75g == |-——-| ial Full Cream Milk —4L & 2L Amasi—500mI, 1L & 2kg Fresh Cream— 250ml Proc
Slide 13: Award Winning Quality
AWARD WINNING QUALITY 13 LANCEWOOD® MANUFACTURER won 60 1st prizes across all brands
Slide 14: Market Leadership
MARKET LEADERSHIP 14 LANCEWOOD is growing ahead of the market in all categories, the brand is also accelerating growth in the shorter term HARD CHEESE PRE-PACKS I 29.8% CREAM CHEESE I 51.9% Lancewood yoghurt is one of the fastest growing brands in defined retail and holds 2 nd position in focus cate
Slide 15: Brand Awareness
BRAND AWARENESS 17 LANCEWOOD’s marketing activity has seen an uplift in awareness, which has impacted both consideration as well as usage over time. Brand Awareness % 80 74 70 59 60 52 53 50 40 30 20 10 2017 2022 2021 2022 0 CHEESE YOGHURT Source: Nielsen Brand Tracker May 2022
Slide 16: Brand Role
We make cheese. We make yoghurt. We make spreads, dips and sauces. But what we do best is make moments.
Slide 17: Consumer Truth
CONSUMER TRUTH 19 Although a rise in “alone together” time means families now spend more time at home, it is not necessarily in a way that feels like quality time. IOL | Parenting Children in SA spend more time in front of screens than with family. – SISSA Just over half of parents interviewed felt
Slide 18: Brand built on quality
20 Over the years, we have collaboratively built the brand LANCEWOOD® to be synonymous with QUALITY. We believe this is only possible when you mix QUALITY ingredients with QUALITY people, which to date has been our recipe for success. Food brings people together, so who better to bring back QUALITY
Slide 19: Lancewood Quality Time
LANCEWOOD Quality Time’
Slide 20: Lancewood brings Quality Time to the streets of SA
22 LANCEWOOD® brings Quality Time to the streets of SA 400+ billboards
Slide 21: Billboard Creative
BILLBOARD CREATIVE ©) LANCEWOOD" LANCEWOOD’ LANCEWOOD Quality Time’
Slide 22: Driving Awareness
DRIVING AWARENESS 24 OUT OF HOME BILLBOARDS WHISPER MEDIA We placed billboards in 7 top performing South African soapies to drive awareness during prime-time viewing PRINT DIGITAL TOPLINE STATS Clicks to website Video views 1,9 mil 3,2 mil Source: Google Ads Report Oct’21 – Sep’22
Slide 23: Social Media Growth
SOCIAL MEDIA GROWTH 25 Largest SA Food & Beverage Brand FB Followers 1129 184 1052 923 852 314 682 537 200 111 85 522 357 390 40 851 Reach Engagement Video views 2015 2016 2017 2018 2019 2020 2021 2022 289 mil 14 mil 12 mil 12% vs PY Insta Followers 90 400 73 500 20 400 50 300 10 200 Reach Engagemen
Slide 24: Top Performing Post by Reach
TOP PERFORMING POST BY REACH 26 4,408,281 2,571,247 1,752,532 Source: Social Media Report, Sep’22
Slide 25: Influencer Partnerships
INFLUENCER PARTNERSHIPS 27 W E JO INE D FO RCES W ITH SA’ S TOP FOODIES @minkivanderwesthuizen @zola_nene @jsomething @mpoomy_ledwaba 203 k followers 183 k followers 328 k followers 520 k followers
Slide 26: Influencer Video
INFLUENCER VIDEO 28 T O G E N E R AT E W O R D - O F - M O U T H with her 520 000 followers
Slide 27: Consumer Database
CONSUMER DATABASE 29 MAILERS Oct’21 – Sep’22 1,064,957 EMAILS SENT 20% up 12 MM 55,311 BIRTHDAY VOUCHERS GIFTED 21% up 12 MM Source: Brandtribe
Slide 28: Digital Performance
DIGITAL PERFORMANCE 30 A N N U A L K E Y S TAT S Oct‘21– Sep’22 2,471,575 DIGITAL CLICKS TO WEBSITE 240% up 12 MM - search & digital 3,607,875 DIGITAL VIDEO VIEWS 100% up 12 MM - YouTube 1,077,568 SOCIAL TRAFFIC TO WEBSITE 38% up 12 MM - Unique clicks from FB & IG 1,060,039 RECIPE PAGE VIEWS 36,648
Slide 29: Website User Journey Video
WEBSITE USER JOURNEY VIDEO 31 Whether you’re searching for a delicious recipe, creating your own personal recipe book(s), creating your shopping list & sending it to your phone – Lancewood has the tools to help you! New features: 1. Mobile-first 2. Advanced ‘visible’ recipe filtering 3. My Recipe Bo
Slide 30: Innovation Inspiration
INNOVATION INSPIRATION 32 INTERNATIONAL FOOD SHOWS RESEARCH GLOBAL PRODUCT AND TRENDS DATABASES
Slide 31: Yoghurt Journey
YOGHURT JOURNEY Pre 2017 yoghurt portfolio OW FAT ‘owsat PLAIN STRAWBERRY yoonurr yoonurr ow rar ow ear ow ra VANILLA, APE FRUIT GRANADILLA yoouurr yoonurt RAI Yoouurr wont 2 seamen Updated and modernised in 2017 —— ee LANCEWOODT _ LANCEWOOD! LANCEWOOD! LANCEWOODE LANCEWOOD! DOUBLE CREAN! Low FAT to
Slide 32: Yoghurt Portfolio Innovation
YOGHURT PORTFOLIO INNOVATION 34 Offering more options to meet our consumers’ lifestyle needs Everyday On-the-go snacking Health NEW Indulgent range
Slide 33: Indulgent Launch
INDULGENT LAUNCH 35 Indulge in
Slide 34: Indulgent Brand Support
36 INDULGENT BRAND SUPPORT PRINT | PR SOCIAL GIF BILLBOARDS
Slide 35: Indulgent Influencer Activation
INDULGENT INFLUENCER ACTIVATION 37 Influencer partners invited to enjoy the ultimate sweet escape in celebration of the Indulgent Yoghurt Range launch
Slide 36: 2023 Pipeline
38 2023 PIPELINE HARD CHEESE SOFT CHEESE YOGHURT convenience luxury indulgence family health snacking indulgence
Slide 37: From our Home to Yours Thank You
2022 Quarter 3 THE LIBSTAR FAMILY Executive Meeting 39 From our Home to Yours Thank You