Slide 1: Q2 2022 Results
Q2 2022 Results August 23, 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 Q2’22 Operational Financial Highlights Review Review FY’22 Q&A Appendices Outlook Q2 2022 Financial Results 3
Slide 4: Speakers Today
Speakers Today Johan Lindén Jacinta Devine COO CFO Q2 2022 Financial Results 4
Slide 5: Q2'22 Highlights
Q2’22 Highlights
Slide 6: Q2'22 Highlights
Q2’22 Highlights Revenue • Strong results delivered within a complex Q2’22 Q2’21 Q2’21 Pro-forma operating environment reflecting the benefits of a diversified business model $2.4bn $1.2bn $2.5bn • On a like-for-like basis, revenue increased 3.2% compared to pro-forma comparative Adjusted EBITDA • D
Slide 7: Operational Review
Operational Review
Slide 8: Operational Review – Q2'22
Operational Review – Q2’22 • Excellent progress in Fresh Fruit in response to the changing marketplace – strong H2'22 expected in comparison to H2'21 • Diversified Fresh Produce segments performing well and demonstrating their robustness to challenging and exceptional markets • Progress in Fresh Veg
Slide 9: Financial Review
Financial Review
Slide 10: Group Results
Group Results Financial Commentary Revenue $’m -2.6% • 4.2% decrease in Q2’22 revenue to $2.4bn -4.2% 4,728.2 4,605.1 • $181.0m reduction to revenue compared to pro- forma comparative due to $112.2m impact of currency translation and $68.8m net M&A activity, 2,462.4 2,360.1 primarily within Diversif
Slide 11: Group Results
Group Results Q2’22 Q2’21 Q2’21 H1’22 H1’21 H1’21 Pro-forma Pro-forma Revenue - $’m 2,360.1 1,209.6 2,462.4 4,605.1 2,260.7 4,728.2 Net Income - $’m 48.5 36.8 78.0 51.8 62.9 141.2 Net Income attributable to Dole plc - $’m 41.3 29.2 69.5 39.9 50.5 127.2 Diluted EPS - $ 0.43 0.52 0.73 0.42 0.91 1.34 A
Slide 12: Segmental Results
Segmental Results $’m Q2’22 Q2’21 H1’22 H1’21 Pro-forma Pro-forma Adjusted Adjusted Adjusted Adjusted Revenue EBITDA Revenue EBITDA Revenue EBITDA Revenue EBITDA Fresh Fruit 805.8 58.0 778.8 85.7 1,555.6 119.9 1,523.4 177.3 Diversified Fresh Produce – 849.9 39.4 951.8 41.0 1,641.0 59.5 1,745.6 65.9
Slide 13: Fresh Fruit
Fresh Fruit Revenue $’m +2.1% Financial Commentary • 3.5% increase in Q2’22 revenue driven driven by higher +3.5% 1,523.4 1,555.6 banana pricing in North America, higher worldwide volumes and pricing in pineapples and growth in commercial cargo 778.8 805.8 • Adjusted EBITDA of $58.0m in Q2’22 reflec
Slide 14: Diversified Fresh Produce EMEA
Diversified Fresh Produce EMEA Revenue $’m -6.0% Financial Commentary • On a like-for-like basis, revenue increased 8.1% driven by -10.7% 1,745.6 robust performance across the division and seasonal timing 1,641.0 benefits in South Africa 951.8 849.9 • 10.7% decrease in revenue for Q2’22 against pro-
Slide 15: Diversified Fresh Produce Americas & ROW
Diversified Fresh Produce Americas & ROW Revenue $’m +7.8% Financial Commentary • Revenue increased by 5.7% in Q2’22 compared to the +5.7% 845.7 911.9 pro-forma comparative • Increase driven primarily by strong performance in the 424.0 448.2 potato, onion and avocado categories as well as a recovery
Slide 16: Fresh Vegetables
Fresh Vegetables Financial Commentary -11.5% • Revenue decreased 6.9% in Q2’22 primarily due to lower -6.9% 660.0 volumes following the value added salad recalls, lower 584.0 demand within the value added salad category and lower planned fresh packed volumes 332.3 309.2 • Adjusted EBITDA was negativ
Slide 17: Capital Allocation and Leverage
Capital Allocation and Leverage Q2’22: $22.1m Invest in our Capex business to drive H1’22: $39.4m long term growth Commitment to Q2’22: $0.08 Dividend return cash to per share shareholders Maintain leverage Leverage Q2’22: 3.44x (1) in line with targeted level: 3.0x (1) Based on TTM pro-forma Adjust
Slide 18: FY'22 Outlook
FY’22 Outlook
Slide 19: FY'22 Outlook
FY’22 Outlook Prior Indication Revised Revenue $9.4bn - $9.7bn $9.1bn - $9.4bn Adjusted EBITDA $350m - $370m $330m - $350m Capital Expenditure ~$125m ~$110m Net Interest Expense ~$45m ~$60m Adjusted Effective Tax Rate ~23% - 27% ~23% - 25% Q2 2022 Financial Results 19
Slide 20: FY'22 Strategic Priorities
FY’22 Strategic Priorities • Accelerating the turnaround of our value added salads business • Continued integration of our businesses and the delivery of targeted synergies • Efficiently managing our operating costs in a high inflation environment • Continuing our focus on expanding our presence in
Slide 21: Q&A
Q&A
Slide 22: Appendix I – Dole plc Overview
4 Appendix | = Dole plc 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: 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 27: 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 28: 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 29: Sustainability Integration
Sustainability Integration • Dole plc will publish a new combined set of goals, framework and materiality assessment in the second 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 inclu
Slide 30: Appendix II
Appendix II Additional Financial Information
Slide 31: Condensed Balance Sheet (unaudited)
Condensed Balance Sheet (unaudited) Jun 30, 2022 Dec 31, 2021 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents $ 238,790 $ 250,561 Trade receivables, net of allowances 616,318 719,114 Grower advance receivables, net of allowances 88,213 72,350 Other receivables, net of allowances 176,044
Slide 32: Reconciliation of Adjusted EBITDA to Net Debt
Reconciliation of Adjusted EBITDA to Net Debt Six Months Ended Jun 30, 2022 Jun 30, 2021 (U.S Dollars in millions) Adjusted EBITDA $ 190.3 $ 174.1 Deduct EBITDA of equity method investments (12.0) (105.3) Net Interest paid (25.0) (4.8) Tax paid (33.3) (6.8) Other 5.6 1.1 Operating cash flows before
Slide 33: Appendix III
Appendix III Reconciliation of Non-GAAP Financial Measures to Related GAAP Measures
Slide 34: 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 35: 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 36: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation from Net Income to Adjusted EBITDA for the three months ended June 30, 2022 - Unaudited Three Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2021 Pro-forma (U.S. Dollars in thousands) Net income (Reported GAAP) $ 48,496 $ 36,832 $ 77,954 Income tax expen
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Reconciliation from Net Income to Adjusted EBITDA for the six months ended June 30, 2022 - Unaudited Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2021 Pro-forma (U.S. Dollars in thousands) Net income (Reported GAAP) $ 51,781 $ 62,947 $ 141,150 Income tax expense
Slide 38: 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 June 30, 2022 - Unaudited Three Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2021 Pro-forma (U.S. Dollars in thousands, except per share amoun
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 six months ended June 30, 2022 - Unaudited Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2021 Pro-forma (U.S. Dollars in thousands, except per share amounts)
Slide 40: Trailing Twelve Month ("TTM") 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 6 months to June 30, 2021 GAAP reported net income 62,947 6 months to December 31, 2021 GAAP net income (46,139) Pro-forma adjustments: Gross up for 100% of Legacy Dole
Slide 41: Net Debt
Net Debt $’m Jun 30, 2022 Cash and cash equivalents $ 238.8 Bank overdrafts (20.0) Notes payable and current portion of long-term debt, net (81.2) Long-term debt, net (1,182.0) Total debt (1,283.2) Less: Debt discounts and debt issuance costs 19.6 Total gross debt (1,302.8) Net Debt (Non-GAAP) $ (1,
Slide 42: Financial Statements to Pro-Forma Reconciliation
Financial Statements to Pro-Forma Reconciliation Reconciliation from Statutory Reported Revenue to Pro-Forma Revenue Three Months Ended Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 (U.S. Dollars in thousands) Revenue per financial statements of Dole plc (Reported GAAP) $ 2,36
Slide 43: 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 Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 (U.S. Dollars in thousands) Adjusted EBITDA per financial statements of Dole pl