Slide 1: Results Presentation: Year ended 31 December 2021
THE LIBSTAR FAMILY LIBSTAR From our Home to Yours Results Presentation Year ended 31 December 2021
Slide 2: Presentation overview
Presentation overview 2 ntroduction ESG Strategy Financial Review Category Review Outlook Questions and Answers
Slide 3: Introduction
LANCEWOOD" «,,, DOUBLE CREAM Vf STRAWBERRIES & CREAM’ | hi | 01 Introduction Andries van Rensburg, CEO
Slide 4: Introduction
Introduction 4 Manufacturing Strong Balance sheet Depth of Talent World-Class, low-cost and cash generation Culture of Innovation manufacturing Focused Fearless Family Category expertise Go to market Partnerships Category & Market Insights Libstar Platform of diverse Partnerships with our channels &
Slide 5: Libstar brand solutions
Libstar brand solutions Ivoduction Baking & 4 Snacks & Baking Aids Confectionery 41% Multi-channel CPG food manufacturer operating in four value-added food categories 56% 67% Libstar brand solutions 80% of Group revenue 95% Private brand solutions 52% Libstar own brands 30% Principal brands 6% 3% i”
Slide 6: Portfolio repositioning
Portfolio repositioning Introduction Exit of HPC* category * Household and Personal Care * Contactim & Chet Chemicals now held for sale *« R217.3m total consideration — R174.6m for 70% — R42.7m put/call option on remaining 30% from 31 Dec 23 - 30 Jun 24 * Deal subject to fulfilment/waiver of usual c
Slide 7: Portfolio repositioning (cont.)
Portfolio repositioning (cont.) Introduction EBIT Margin % 10.8 10.1 10.2 Hg 8.6 9.4 8.2 8.0 3.3 2.5 0.3 -1.0 2018% 2019 2020 2021 <=Food «Group == HPC COVID-19 impact Food-only portfolio * Food categories have consistently outperformed non-food * Focus on value-added businesses * HPC proceeds earma
Slide 8: Key themes of 2021
Key themes of 2021 reodusten * Price & value for money Constrained consumers * Promotional activity * Growth of private label (innovation) Rising input costs * Cost savings & margin management * Inventory planning & increased stock levels Supply chain volatility where necessary * Customer service le
Slide 9: Libstar own brand market position
Libstar own brand market position hvodeton 9 LANCEWOOD" Libstar own brands shows growth of 8% The number 1 brand in: Hard cheese, cottage cheese, cream cheese, mascarpone & cultured cream Robertsons Baking Aids* number 1 brand in baking aids LANCEWOOD" The number 1 spray oil brand by volume and valu
Slide 10: Private brand progress
Private brand progress Introduction 10 Private brand Value Share Trend - Year Ending May 2021 +27.2% growth 2H’21 continuing trend to PL, consumers stick with PL options FY 2019 FY 2020 FY 2021 Source: NielseniQ May 2021 Double-digit growth acceleration since lockdown level 5 (March 2020) + Branded
Slide 11: Consistently meeting consumers' needs with product innovation
with product innovation Consistently meeting consumers’ needs Introduction an} Product diversity & innovation Libstar brands No. of Since products 2021 2018 Growth in New 537 4503 branded and Private label Renovated 219 779 offerings Total 756 | 2282 ANCEW @ Piri-Piri chilli seasoning Sriracha chill
Slide 12: 2021 Group results summary
2021 Group results summary Introduction 12 Volumes +0.5% Price/mix +6.6% Revenue +7.1% Normalised EBITDA +2.4% Normalised EPS +112.0% Dividend of 25 cps Cash conversion ratio up (2020: 25 cps) from 83% to 96% Interest cover ratio 9.1X ROIC 12.5% (2020: 7.6x) (2020: 12.3%) Normalised EBIT +1.2% Norma
Slide 13: 2021 summary of channel performance
2021 summary of channel performance Introduction 13 Revenue by sales channel Y-o-y change 2020 Retail & Wholesale Food service Export Industrial & Contract Manufacturing Total Group revenue 0.3% +33.5% +2.8% +13.5% +7.1% Revenue contribution 57.0% 18.7% 12.1% 12.2% 100.0% 60.8% 15.0% 12.7% 11.5% 100
Slide 14: Libstar Nova — Finding future stars
nova | Libstar Nova — Finding future stars ited 14 Unatie Incubator vehicle that will allow us to be future fit & invest in new categories, acquiring talent & competencies Acquisitions as per original Libstar formula Find & invest in people & use the Libstar underbuild to grow these businesses First
Slide 15: ESG Strategy
02 ESG Strategy Charl de Villiers, CFO
Slide 16: ESG strategy launched to prioritise material risks
ESG strategy launched to prioritise material risks wosuston 16 e Detailed materiality review completed e Key risks categorised & incorporated in group risk framework e Moving on to implementation stage e Clear 5-year strategy supported by science-based measures for each Implementation process e Seve
Slide 17: Financial Review
LIBSTAR 02 Financial Review
Slide 18: Income statement - Revenue & Gross profit margin
Income statement - Revenue & Gross profit margin FinancialReview 18 2021 Gross Profit % Group revenue +7.1% (R10.0bn) — 24.0 24.4 22.4 Volume Driven by food service +0.5% and industrial & contract 2017 2018 2019 2020 2021 i i manufacturin en channels 9 * Export margin down - lower avg. FX rates vs 2
Slide 19: Income statement - Snapshot
Income statement - Snapshot FinancialReview 19) (R’m) % ch. 2020 Revenue 10 001.4 +7.1% 9 339.4 Gross profit margin (%) 23.0% -1.4pp 24.4% Other income 50.5 +13.2% 44.6 Operating expenses (margin) -1 841.7 (18.4%) -6.7% -1 973.4 (21.1%) Operating profit (margin) 512.4 (5.1%) +46.5% 349.8 (3.7%) Norm
Slide 20: Financial Review: balance sheet and key ratios
Financial Review 20 (R’m) 2020 Key financial ratios 2020 Targets Non-current assets 5 891.3 6 445.5 Property, plant and equipment 1 457.0 1507.8 Gearing ratio 1.2 1.4 <2.0 Right-of-use-assets 504.4 649.5 Other non-current assets 3 929.9 4 288.2 . Current assets 3687.8 4089.5 Invented Cawital (9) 125
Slide 21: Cash summary
Cash sum mary Financial Review 21 % Cash flow conversion Cash flow analysis strengthened 2021 (R’m) 2020 (R’m) = 936 Opening cash balance = 855 96 Yl 1028 Cash generated from ops y | 1026 89 7 Working capital changes -118 83 -102 Net finance charges -121 tk -147 Tax paid -150 | 786 Cash generated fr
Slide 22: Cash flow - Working capital days
Cash flow - Working capital days Financial Review 22 15.5% 15.6% 5g 14.7% —s— — . + Ez 13.4% Net working capital : Revenue geo 4% slightly above target of 13-15% of revenue ee 56 57 Net working capital days increased from 56 days to 57 52 days 47 + Pleasing debtors and creditors days S * Higher inve
Slide 23: Capital expenditure
Capital expenditure Financial Review 23 Capex % of net revenue Top completed capex projects since 2019 (R’m) F19 F20 F21 Project description Capex guidance remains 2-3% of net revenue 1. Hard cheese packaging & manufacturing (Lancewood) 2. Distribution centre and milk reception upgrades (Lancewood)
Slide 24: Category Review
LIBSTAR 03 Category Review Charl de Villiers, CFO
Slide 25: Underlying margin performance vs targets
Underlying margin performance vs targets Category Review 25 Normalised EBITDA 2021 2020 Near term 2021 margin achieved achieved target Performance vs target Perishables 8.8% 8.8% 10% - 13% Below target Groceries 15.3% 16.3% 13% - 16% Within target Snacks & D 9 M72 Confectionery 20.4% 15.6% 14% - 17%
Slide 26: Divisional highlights and challenges
Divisional highlights and challenges categon Revew 26 Lancewood (double-digit EBITDA growth) * Margin management & cost control Finlar * Rising input costs Rialto Cape Herb & Spice * Strong food service channel performance * Currency volatility * Continued retail resilience * Localisation of supply
Slide 27: 2021 Performance by category & channel: Perishables
LIBSTAR 2021 Performance by category & channel CategoryReview 27 PERISHABLES 52% of Group revenue Channel contribution Perishables revenue by channel 2021 Retail & Wholesale +3.1% Food service +31.3% revenue 24% Exports +27.9% Industrial & Contract Manufacturing +16.3% @ Retail & Wholesale ™ Food se
Slide 28: 2021 Performance by category & channel: Groceries
LiBsTAR 2021 Performance by category & channel category Review 28 GROCERIES 33% of Group revenue Channel contribution Groceries revenue by channel 2021 9% 7% Retail & Wholesale -3.6% WY 2021 Vi 16% Men 22 Food service +39.6% 43% revenue Exports -2.4% 21% % : : ee Industrial & Contract Manufacturing
Slide 29: 2021 Performance by category & channel: Snacks & Confectionery
29 LIBSTAR 2021 Performance by category & channel Category Review Sovcconoueey 5% of Group revenue Channel contribution Snacks & Confectionery revenue by channel 2021 Retail & Wholesale -10.1% 85% Mey) Exports -3.2% ebay revenue revenue Industrial & Contract Manufacturing +13.9% =Retail & Wholesale
Slide 30: 2021 Performance by category & channel: Baking & Baking Aids
30 LIBSTAR 2021 Performance by category & channel Category Review BAKING & BAKING AIDS 9% of Group revenue Channel contribution Baking & Baking Aids revenue by channel 2021 Retail & Wholesale +4.6% 84% Manon 2020 Food service +44.5% revenue 11% revenue 8% Exports -8.0% 4% ¥, - ; 1% Sui ° Industrial
Slide 31: Outlook
LIBSTAR Andries van Rensburg, CEO
Slide 32: Response to emerging behaviours and trends
Response to emerging behaviours and trends _ oitvs 32 Behaviour or trend Libstar response Shopper basket * Diversified product mix, eg. new wet condiment ranges, Focus on choice brand solutions Wacation * Increased online presence Growth in frozen category, food service & wholesale focus CieeHiin Gi
Slide 33: Category & channel outlook
Category & channel outlook Outlook 33 Retail & Wholesale Channel Retail demand normalised (All categories) Constrained consumer (All categories), but value-added meal ingredients remain resilient (Groceries) Growing wholesale channel Food Service Recovery ongoing (Perishables, Groceries, Baking & Ba
Slide 34: Post-period trading: Jan & Feb 2022
Post-period trading: Jan & Feb 2022 outek 34 Retail and wholesale Good Dec ‘21 recovery, Jan/Feb growth on par with PY Food service Continuing strong topline recovery vs comparative period Strong growth in quick service restaurants Exports Constraints / timing delays in shipments Industrial and cont
Slide 35: F2022 Group outlook
F2022 Group outlook outlook 35 S Anticipated headwinds Se Anticipated tailwinds * Diversified product mix & channel participation e.g. increased * Ukraine conflict creates risk of further cost wholesale inflation * Timing delays (costs vs price increases) * Structural growth drivers intact * Continu
Slide 36: Libstar's strategic journey
Libstar’s strategic journey outek 36 Pre-2017 2018-2021 2022 onwards Private label Operator Focused and brand category aggregator leader Where we come from What we’ve accomplished Where we're headed e Decentralised holding company Becoming an efficient, low-cost Repositioning portfolio toward high v
Slide 37: Structural growth drivers
Structural growth drivers Outlook 37 Product innovation Our people Strong balance sheet Customers Value-added portfolio Libstar Nova Brand positioning
Slide 38: Questions and Answers
05 Questions and Answers
Slide 39: Brand promise
) <— 3 > fe) g cd) € fe) a a =) fo) € fe) © Le Brand promise:
Slide 40: Appendices
LIBSTAR Appendices * Income statement breakdowns * Cashflow breakdowns * Debt breakdowns * Category contribution breakdowns
Slide 41: Income statement - Operating expenses
Income statement - Operating expenses Appendices 41 (R'm) Opex as reported Long-term incentives Retrenchment & settlement costs Other non-operating or non-recurring items Impairment losses on assets Opex less all non-operating/ non-recurring/non-cash items above Depreciation of property, plant and e
Slide 42: Income statement reconciliation
Income statement reconciliation Appendices 42 Reconciliation between Normalised EBITDA, Normalised earnings & Normalised headline earnings Normalised EBITDA less: 1 068.7 2.4% 1 043.6 Depreciation and amortisation -325.5 -308.9 Net interest -156.6 -174.0 Impairment losses on assets -73.3 -203.8 Taxa
Slide 43: Income statement - Normalised EPS & HEPS
Income statement - Normalised EPS & HEPS Normalised earnings (R’m) WANOS (million) Normalised EPS (cps) Normalised HEPS (cps) Appendices 43 419.2 +112.1% 197.7 Normalised headline earnings 479.3 +18.8% 403.6 595.8 595.8 70.4 +112.0% 33.2 80.4 +18.8% 67.7 25.0 25.0 DPS (cps) NOTE: Further detail avai
Slide 44: Income statement - R8m in extraordinary expenses
Income statement - R8m in extraordinary expenses Appendices 44 COVID extraordinary expenses % of Total Cost | am | Donations 5% 686 Personnel-related benefits (transport, COVID testing) 34% 5 153 COVID operating costs 61% 9177 Total 100% 15 016 R9m R6m in in operating Cost of expenses Sales
Slide 45: Breakdown of open FEC exposure
Breakdown of open FEC exposure Aaencne 45 Dealt Amount Forward FEC Cover FEC spot rate on 31 eer at Millions Rate (R'm) 31 December 2021 . Quarter (R'm) 2022-01 133 137 +EUR 5 17.7 87 18.2 89 +NZD oO 10.8 oO 11.0 oO +USD 3 15.5 46 16.1 48 2022-Q2 84 85 +EUR 3 18.2 57 18.5 58 +GBP oO 21.3 4 22.1 3 +U
Slide 46: Appendices
Appendices * Income statement breakdowns * Debt breakdowns * Category contribution breakdowns
Slide 47: Breakdown of net investing & net financing activities
Breakdown of net investing & net financing activities ——sevendces 47 (R’m) 2021 Net investing activities Capital expenditure Sale of PPE Other loans repaid to the group Net financing activities Principal elements of lease payments Net movement from term loans and asset-based financing Net movement o
Slide 48: Libstar
LIBSTAR
Slide 49: 5-year net debt trend
5-year net debt trend (R'm) 2.500 2.000 1500 1 000 500 mam Normalised EBITDA Appendices 49 Net Gearing calculation = Net debt : Normalised EBITDA (Excluding IFRS 16) mam Net interest-bearing debt | <@®= Net gearing ratio 2.0 Notes: 1. Gearing remains low cash) covenants (2020: 1.4x); Debt covenant <
Slide 50: Net debt structure
Net debt structure Appendices 50 Facility Maturity Rate 3M (R’m) date JIBAR margin Old debt structure Facility A 670 Nov-22 1.68% 350 670 Facility B 1 000 Nov-23 1.75% 1000 1000 Facility C 240 Nov-23 1.85% = 150 Facility A 1000 Dec-26 1.70% 1000 Facility B 150 Dec-24 1.60% 150 Facility C 200 Dec-25
Slide 51: Summary of key financial ratios
Summary of key financial ratios Appendices 51 Gearing ratio (net debt to normalised EBITDA) Cash from operations before working capital changes Cash generated from operating activities Cash conversion ratio Net working capital (as percentage of revenue) Return on Tangible Invested Capital R1 028m 96
Slide 52: Appendices
LIBSTAR Appendices * Income statement breakdowns * Cashflow breakdowns * Debt breakdowns * Category contribution breakdowns
Slide 53: Libstar categories
Libstar categories Apendess «5 1 2 S 4 ’ - Baking & jw | capri pIALTA pIALTQ Millennium Foods DickonHsliFoeds khoisan gourmet + CAPE COASTAL Horney i; MONTAGU sae LIBSTAR aS nenasl fi fnanos
Slide 54: Category revenue contributions
Category revenue contributions Aonendies 54 ategories g categ' 99.40, ategories g categ' 99.4, ¢0° PERISHABLES GROCERIES BAKING & BAKING AIDS HOUSEHOLD & PERSONAL CARE (HPC) HPC 0.6% HPC 0.6%
Slide 55: Category Normalised EBITDA contributions
Category Normalised EBITDA“ contributions Aapendies 55 ategories 7 ood Gi 00.50, ategories g categ! 99, 6% ¢0° PERISHABLES GROCERIES Normalised Normalised EBITDA’ EBITDA’ 2021 2020 AIDS HOUSEHOLD & PERSONAL CARE (HPC) ’ Before allocation of HPC -0.5% corporate costs HPC 0.4%
Slide 56: Perishables: Divisional contribution to EBITDA
4 LIBSTAR PERISHABLES Divisional contribution to EBITDA Appendices 56 90% of category EBITDA Lancewood (Dairy) Finlar (Meat) Rialto (Value-added perishables) Denny (Mushrooms) Millennium Foods (Pre-packaged meals) Total +10.6% +1.1% +1.7% -3.0% +2.1% +12.5% +11.2% +0.8% +1.7% -3.3% +2.0% +12.4%
Slide 57: Groceries: Divisional contribution to EBITDA
LIBSTAR GROCERIES Divisional contribution to EBITDA Appendices 57 81% of category EBITDA Dry condiments (Cape Herb & Spice) Meal ingredients (Rialto Foods; NMC) Wet condiments (Dickon Hall Foods) Spreads (Cape Coastal Honey) Wet condiments (Cecil Vinegar; Montagu Foods) Teas (Khoisan Gourmet) Chamon
Slide 58: Snacks & Confectionery: Divisional contribution to EBITDA
LIBSTAR Divisional contribution to EBITDA Appendices SNACKS & CONFECTIONERY O alised EBITDA R 6 R ) 100% of Ambassador Foods +16.2% +8.6% category EBITDA K Snacks +6.9% +6.7% Ola % %
Slide 59: Baking & Baking Aids: Divisional contribution to EBITDA
LIBSTAR BAKING & BAKING AIDS Divisional contribution to EBITDA Appendices 59 100% of category EBITDA ormalised EBITDA R 6 Amaro Foods +10.7% Retailer Brands -2.8% Cani Artisan Bakers -15.4%
Slide 60: Disclaimer
LIBSTAR Disclaime Certain matters discussed in this document regarding Libstar’s future performance, that are neither reported financial results nor other historical information but involve known and unknown risks based on assumptions regarding the group’s present and future business strategies and