Slide 1: Interim Results 26 Weeks Ended 24 September 2022
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Slide 2: Agenda
AGENDA INTRODUCTION AND H1 FY23 HIGHLIGHTS Adam Couch, CEO FINANCIAL REVIEW Mark Bottomley, CFO COMMERCIAL UPDATE Jim Brisby, CCO OPERATING & STRATEGIC REVIEW Adam Couch, CEO Q&A DISCLAIMER: Certain statements in this presentation are forward looking statements. By their nature, forward looking stat
Slide 3: Introduction
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Slide 4: Our Long-Term Trading Record
OUR LONG-TERM TRADING RECORD 1990 - 2022 =a Be DIVIDEND PER SHARE (pence) ADJUSTED PROFIT BEFORE TAX'(&M) 32 YEARS OF UNBROKEN DIVIDEND GROWTH REVENUE fo or Ws 4 5 06 O78 9 OO OI or US 4 OS O67 OS OY TON 2S US YW BO 1 cade AS 4 movement on bilogiaste and auton elatd retnaton 26 weeks ended 24 Septem
Slide 5: H1 FY23 Highlights
H1 FY23 HIGHLIGHTS Strong revenue growth reflecting inflation recovery with like-for-like volumes in line with prior period Broad-based inflationary pressure across the Group's cost base continues to be well controlled Total capital expenditure of £38.1m across the Group's asset base to add capacity
Slide 6: Chief Financial Officer
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Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE (£M) ADJUSTED PROFIT BEFORE TAX (£M)' H1FY23, 1,116.3 H1FY23 66.0 Ha N22 68.3 H1FY21 60.7 ADJUSTED EARNINGS PER SHARE (P)! -4.7% DIVIDEND PER SHARE (P) +3,0% H1FY21 92.8 H1FY21 18.7 FREE CASH FLOW (£M) -40.7% NET DEBT (£M)? +£49.3M H1FY23 46.9 (136.5) H1FY23 H1FY22 79.1
Slide 8: H1 FY23 Summary
H1 FY23 SUMMARY Revenue 1,116.3 993.1 +12.4% Like-for-like revenue growth! 2 2 +10.7% Adjusted gross margin? 13.1% 13.8% -74bps Adiusted esenatting art 68.4 69.6 17% Adjusted operating margin?® 6.1% 7.0% -88bps Adjusted profit before tax?* 66.0 68.3 -3.4% Tax on adjusted PBT 20.3% 19.9% +39bps Adjus
Slide 9: Strong Revenue Growth
STRONG REVENUE GROWTH REVENUE BRIDGE (£M) REVENUE GROWTH 43.3% -0.5% | *14% en BE) +1.4% (4.6) +6.5% | Kr a 675 412.4% HI FY22 Retail Food Service Wholesale Exports Pet Food H1 FY23 26 weeks ended 24 September 2022 = a IS DRIVEN BY: Successful control and recovery of widespread cost inflation New pr
Slide 10: Stable Margins
STABLE MARGINS AVERAGE: 13.1% AVERAGE: 9.3% AVERAGE: 6.4% HIFYI9 HIFY20 HIFY21 HIFY22 HIFY23 HIFYI9: HIFY20 HIFY21 HIFY22 HIFY23 HIFYI9: HIFY20 HIFY21 HIFY22 HIFY23 ADJUSTED GROSS MARGIN’? ADJUSTED EBITDA MARGIN '? ADJUSTED OPERATING MARGIN"? Lower operating margin reflects the anticipated short-ter
Slide 11: Investment in Inventory and Biological Assets
INVESTMENT IN INVENTORY AND BIOLOGICAL ASSETS DRIVES MOVEMENT IN OPERATING CASH —£M September 2021 EBITDA Inventory Biological Receivables Payables Taxation Other September 2022 assets 26 weeks ended 24 September 2022 = a "
Slide 12: Net Debt
NET DEBT (106.0) (136.5) (37.5) (27.6) (5.6) Dn March 2022 EBITDA Biological assets Working capital _—_Taxation Net capex Dividends Leases Other September 2022 Opening and closing net debt includes IFRS 16 leases Net debt excluding IFRS 16 lease liabilities at the period end was £61.1m (March 2022:
Slide 13: Strategic Investment Continues
STRATEGIC INVESTMENT CONTINUES CONSOLIDATE FY23 CAPEX Phase 1 expansion of Fresh Pork Hull to increase capacity and improve efficiency incorporating latest GUIDANCE One fol Siem predhratamtimellty) Expansion of Milton Keynes Cooked Meats site incorporating new lines, increasing capacity by 25% and a
Slide 14: A Sustainable Capital Allocation Framework
A SUSTAINABLE CAPITAL ALLOCATION FRAMEWORK INVESTING IN THE BUSINESS TO CAPEX OF c.£100M TO ADD CAPACITY, SUPPORT OUR GROWTH STRATEGY CAPABILITY AND AUTOMATION MAINTAIN INVESTMENT TARGET LEVERAGE OF GRADE BALANCE SHEET <2X NET DEBT:EBITDA MAINTAIN PROGRESSIVE DIVIDEND POLICY COVER OF 22.5X EPS*:DPS
Slide 15: Commercial Update
Slide 16: Retail Sales Continue to Perform
RETAIL SALES CONTINUE TO PERFORM AHEAD OF PRE-PANDEMIC LEVELS Strong performance by Aldi and Lidl as Aldi reach Top 4 share position, and Lidl close Source: Kantar 24 w/e 50 October 2022 26 weeks ended 24 September 2022 Asda recovery supported by value for money M&S growth continues as footfall incr
Slide 17: Inflationary Pressure Across the Cost Base
INFLATIONARY PRESSURE ACROSS THE COST BASE WHEAT AND SOY PRICES Inflation impacting all elements of the cost model . Feed input costs significantly increased since early 2022 a Cranswick initiated pricing support for pig farmers i= SPP increased from from £1.40/kg to stabilise at c.£2.00/kg : Recove
Slide 18: Inflation vs 2021
INFLATION Vs 2021 PORK AND POULTRY CONTINUE TO OFFER THE BEST VALUE TO CONSUMERS UK RETAIL AVERAGE £/KG £4.48 Fresh £3.91 414.6% poultry £3.83 £3.85, £5.24 Fresh £485 #8.0% pork £4.90 £4.56 £865 Fresh £7.94 *8.9% ‘Boot £7.84 £7.64 +11.0% Fresh #5.0% Fish £0.00 £2.00 £4.00 £6.00 £8.00 ‘£10.00 £12.00
Slide 19: Volumes of Chilled Meat in Line with 2019 Levels
VOLUMES OF CHILLED MEAT IN LINE WITH 2019 LEVELS RETAIL PROTEIN VOLUME a2aw/eOctiy 24 w/e Oet20 24 w/e Oct 21 400 346 350 _ sez 324 310 oo 302 . 784) [285 250 i § 200 é 157 Eso e146 5 138 isa ee 3 Ee) ae 00 50 25 27 25 9 7 9B Goo ° Total Chicken Total Pig Meat TotalFish ‘Total Beef __—TotalLamb Othe
Slide 20: Out of Home Market Remains Challenging
£80.0 £70.0 £60.0 £50.0 £40.0 £bn £30.0 £20.0 £10.0 £0.0 OUT OF HOME MARKET REMAINS CHALLENGING QSR CHANNEL SALES AHEAD OF 2019 £73.9 £46.2 £12.6 £1541 2019 £38.3 2020 £50.6 £297 £6.3 £14.6 2021 £58.5 £35.0 £15.6 2022 HEQsR [Hotels Other Out Of Home Out of home spend tracking at £58.5bn, +15.6% in l
Slide 21: Strong Category Sales
STRONG CATEGORY SALES IMPACT OF INFLATION EVIDENT; VOLUMES STATIC ON A LIKE-FOR-LIKE BASIS CRANSWICK SALES H1 FY23 fe Fresh Pork 45.9% 2» Convenience! 413.1% p Gourmet Products? +19.5% ¥ Poultry? +7.6% CHANGE CATEGORY VALUE VOLUME -2.8% +4.2% 42.9% +0.5% CRANSWICK CHANNEL SALES H1 FY23 EXPORT -4% WH
Slide 22: Sustainable Soya
SUSTAINABLE SOYA Soya reduction and deforestation free 50% REDUCTION IN FOOD WASTE Fareshare “Leading Food Partner” status achieved Target zero edible food waste by 2030 50% REDUCTION IN PLASTIC USAGE Further reduction from 1,700 tonnes to over 2,000 tonnes SET SCIENCE BASED TARGET FOR NATURE Awaiti
Slide 23: Operating & Strategic Review
Slide 24: Our Strategy and Growth Agenda
OUR STRATEGY AND GROWTH AGENDA OUR PURPOSE Creating great tasting, affordable food; authentically made and sustainably produced CONSOLIDATE EXPAND DIVERSIFY DEVELOPING NEW OPPORTUNITIES DRIVE THE CORE GROWTH MARKETS Share growth and business wins Additional chicken processing capacity Develop new ex
Slide 25: Consolidate
CONSOLIDATE INVESTMENT IN VERTICAL INTEGRATION Continued investment in expanding and enhancing our agricultural supply chain Further expansion of the pig herd completed during the period lifting our self-sufficiency to more than 40% Enhances security of supply and ability to drive sustainability ini
Slide 26: Expand
EXPAND PREMIUM BREADED POULTRY Premium Breaded Poultry facility successfully commissioned at the beginning of the period Volumes continue to increase with further capacity for growth Initial retail volumes complemented by the addition of a strategic Quick Service Restaurant customer shortly after th
Slide 27: Diversify
DIVERSIFY CRANSWICK PET PRODUCTS Acquisition of Grove Pet Foods completed on 28 January 2022 with business being reshaped for the future VitALIN £8.6m investment due to begin shortly at the business's manufacturing facility to expand capacity and support growth plans British Retail Consortium approv
Slide 28: Avian Influenza
AVIAN INFLUENZA The UK poultry industry is experiencing the most virulent Avian Influenza season with record numbers of protection and captive bird monitoring zones in place Government compensation in place for loss of birds 75 farms with well diversified risk across rearing, laying and broiler farm
Slide 29: Summary and Outlook
SUMMARY AND OUTLOOK RESILIENT PERFORMANCE ONGOING INVESTMENT OUTLOOK UNCHANGED Strong revenue growth Industry leading infrastructure Inflation proactively managed Volumes maintained Broad-based c.£100m capex plan Further commercial and strategic progress Robust financial position Deepening vertical
Slide 30: Our Growth History
APPENDIX 1 OUR GROWTH HISTORY — 1975 - 1988 - 1991 - 1992 - 1992 - 1995 - 1999 - 2001 - 2004 - 2005 Established Move into food Preston George Bucktons FT Sutton's Deli Simply Sausages _Pethick & Co - Continental Jack Scaife’s Perkins Agri-Food business production abattoir Pet Food Cooked Meats - Gou
Slide 31: Our Locations
BALLYMENA 26 weeks ended 24 September 2022 MALTON SHERBURN ~IN-ELMET WATTON Q EYE MILTON KEYNES, LONDON APPENDIX 2 OUR LOCATIONS WE HAVE SITES ACROSS THE UK AND OUR PRIMARY PROCESSING FACILITIES ARE WELL PLACED WITHIN KEY FARMING AREAS @ OVER 13,700 EMPLOYEES OPERATING IN 20 FACILITIES e @ OVER £400
Slide 32: Adjusted & Reported Earnings; Tax & Earnings Per Share
APPENDIX 3 ADJUSTED & REPORTED EARNINGS; TAX & EARNINGS PER SHARE Adjusted operating profit 69.6 Headline tax rate 19.0 19.0 _ 12 (3.2) Disallowed expenses 0.6 12 Other 03 0.2 Acquisition related amortisation (2.7) (1.9) Deferred tax rate change 23 3.4 Impairment of intangible asset (3.0) - Guprardl
Slide 33: Balance Sheet & Cash Flow
APPENDIX 4 BALANCE SHEET & CASH FLOW BALANCESHEET (EM) Property, plant & equipment 4440 395.2 Intangible assets 2258 2104 Right-of-use assets 719 65.4 Biological assets 70.5 479 Working capital 1415 977 Net debt (136.5) (87.2) Tax, grants, provisions, pensions (247) (11.8) Net assets’ 792.5 717.6 Ge
Slide 34: Cash Allocation and Banking Facility
H1 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 469 158.4 180.9 115.8 87.3 17 724 83.4 856.8 92.4 7141 97) 78.0 58.0 46.5 33.5 514.1 APPENDIX 5 CASH ALLOCATION (£M) 38.5 10.7 76.2 26 weeks ended 24 September 2022 FREE CASH ACQUISITION / CASH INFLOW / FLOW KEVENTES (DISPOSAL| BMETEX DAT (OUTFLOW)! (18.2)