Slide 1: Results presentation for the year ended 31 December 2022
LIBSTAR From our Home to Yours Results presentation For the year ended 31 December 2022
Slide 2: Presentation overview
Presentation overview Financial review Category performance Libstar strategy Outlook
Slide 3: Financial review
Financial review
Slide 4: Group highlights and challenges
Group highlights and challenges Highlights i" Challenges Fi Revenue growth 10.7% > Volume +3.0% and price mix 7.7% Strong food service performance > 23.4% growth; 8.1% volume Strong industrial and contract manufacturing performance > 17.1% growth; 12.9% volume Operating expenses contained > 6.3% ‘%
Slide 5: Divisional highlights and challenges
Highlights i Divisional highlights and challenges Challenges ea Finlar > Improved yields & efficiencies Dickon Hall Foods > 7 industrial & contract manufacturing of wet condiments Millennium Foods > Double-digit volume growth of convenience meals in the retail channel, bolstered by growth in frozen
Slide 6: Direct impact of load-shedding
Direct impact of load-shedding Maximum megawatts of electricity shed per day (2021-2022) e 8000 H1 2021 H2 2021 H1 2022 H2 2022 Seiad he bd Mill Jan Feb Mar Apr May = Jun Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Ne 2021 2022 Source: Eskom se Push Libstar generator capacity A Diese
Slide 7: Summarised results 2022
Summarised results 2022 +10.7% 20.7% 41% -4.1% -68.2% GP margin Normalised* Normalised* Normalised* (2021: 22.2%) EBIT EBITDA EPS -11.8% =12.1% 68% 22cps Normalised* Total diluted Gearing Cash ners rs San “Normalised EBIT/EBITDA, Normalised EPS/HEPS, from continuing operations, excludes non-recurrin
Slide 8: 2022 summary of channel performance
2022 summary of channel performance Revenue by sales channel Retail & Wholesale Food service Export Industrial & Contract Manufacturing Total Group +8.6% +23.4% 4.1% +17.1% +10.7% Y-o-y change Volume Price/ 1.2% +9.8% 8.1% +15.3% -8.4% +4.3% 13.0% +4.1% +3.0% +7.7% Revenue contribution 57.4% 19.6% 1
Slide 9: Income statement - Snapshot
Income statement - Snapshot Revenue 11 771.6 +10.7% 10 630.4 Gross profit margin (%) 20.7 -1.5pp 22.2 Other income 83.1 20.3 FX and P/L on disposal of PPE -13.4 25.9 Impairments* -296.0 -102.6 Operating expenses -1 978.7 +6.3% -1 861.7 Margin 16.8% 17.5% Operating profit 237.1 -45.7% 436.9 Margin 2.
Slide 10: Key financial ratios
(R'm) Key financial ratios | 2022 | 2021 Targets Gearing ratio 1.6 1.2 <2.0 Interest cover 7.7 8.9 >3.5 Return on Invested a 9 WACC Capital (ROIC) 10.4% 12.5% lus 2% Capex guidance remains 2-3% of net revenue Capex % of net revenue 2020 2021 2022 Non-current assets Property, plant and equipment Righ
Slide 11: Significant capex investments
Significant capex investments 2022 2019-2022 project total project cost cost Main Capex Projects Project description (Rm) (Rm) Lancewood . wae New milk procurement area, strategic factory location, T hard . Langeberg cheese acquisition cheese capacity; low conversion cost R48.9m = Hard cheese pre-pa
Slide 12: Working capital
> Creditors days ↓ 6 days - lower purchases in Q4 (inventory carried forward from H1) > Debtors days slightly ↓ to 56 > Inventory levels remained high to mitigate effects of ongoing supply chain disruptions & maintain service levels
Slide 13: Cash summary
Cash summary Cash flow analysis 2022 (R’m) 2021 (R’m) % Cash flow conversion lower due = 593 Opening cash balance — 936 to investment in net working capital — 1008 Cash generated from ops | 1028 -277 Working capital changes 7 Cash conversion ratio improved from 15% in H1 2022 to 68% -111 Net finance
Slide 14: Category performance
LIBSTAR \ Category performance
Slide 15: Product innovation
LIBSTAR Product innovation Product diversity & innovation Libstar brands No. of Since products 2022 2018 ; Res . N me) boa Growth in Z3 © i ow branded and Renovated 153 998 private label t= r Total 684) 3038 Offerings "| yeni ta Principal / Licenced brands Private label (PL) & brands markets: Contin
Slide 16: Underlying margin performance vs targets
Underlying margin performance vs targets Normalised 2022 8.4% 12.2% 18.5% 8.9% 1.7% EBITDA margin achieved 2022 target 10% - 13% 13% - 16% 14% -17% 12% - 15% 5% - 8% 2021 achieved 8.8% 15.3% 20.4% 11.2% 0.4% 2023 target 9% - 11% 11% - 13% 15% - 17% 11% - 13% 2% - 4% 16
Slide 17: 2022 Performance by category: Perishables
2022 Performance by category 51% of Group revenue) +14.4% category revenue +) Perishables revenue by channel 2022 Contribution Main driver Retail & Wholesale +10.6% 56.5% Lancewood — Hard cheese Food service +20.6% 29.9% Finlar - Value-added meat products Industrial & Contract Manufacturing +16.1% 8
Slide 18: 2022 Performance by category: Groceries
2022 Performance by category 31% of Group revenue) +8.0% category revenue +») Groceries revenue by channel 2022 Contribution Main driver Retail & Wholesale +6.0% 41.0% Montagu Foods — Wet condiments Industrial & Contract Manufacturing +22.2% 24.1% Dickon Hall Foods — Wet condiments Exports -10.3% 23
Slide 19: 2022 Performance by category: Snacks & Confectionery
2022 Performance by category SNACKS & CONFECTIONERY 4% of Group revenue ) +4.7% category revenue +) Snacks & Confectionery revenue by channel 2022 ~=Contribution Main driver Retail & Wholesale +9.0% 84.4% Ambassador Foods — Nut mixes Industrial & Contract Manufacturing -17.7% 13.1% Exports +17.7% 1.
Slide 20: 2022 Performance by category: Baking & Baking Aids
2022 Performance by category BAKING & BAKING AIDS 8% of Group revenue ) +7.6% category revenue +) Baking & Baking Aids revenue by channel 2022 ~=Contribution Main driver Retail & Wholesale +9.4% 85.6% Amaro Foods - Specialty Food service +9.8% 11.0% breads Exports -21.3% 2.7% Industrial & Contract M
Slide 21: 2022 Performance by category: Household & Personal Care
2022 Performance by category HOUSEHOLD & PERSONAL CARE 6% of Group revenue ) +5.0% category revenue +) Household & Personal Care revenue by channel 2022 = Contribution Main driver Retail & Wholesale +3.9% 90.5% Chet Chemicals - Cleaning products Industrial & Contract Manufacturing +31.0% 7.7% Export
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Slide 23: Assessment of the Libstar portfolio
Assessment of the Libstar portfolio Libstar subscribes to the principles of value-based management Top 6 divisions (Stars) drive 80% of the intrinsic value FY24-FY26 success factors OD Deliver economic profit targets on c. R1.1bn capital expenditure since 2018 BATH) <ptrtesie AMARO [ FOODS ( LANCE S
Slide 24: Assessment of the Libstar portfolio
Assessment of the Libstar portfolio Libstar subscribes to the principles of value-based management Unlock value from Rising Stars FY24-FY26 success factors Deliver scale from combined sales & marketing Investigate further operational & back-office integration LIBSTAR CHAMONIX Grow wholesale channel
Slide 25: Assessment of the Libstar portfolio
Assessment of the Libstar portfolio Libstar subscribes to the principles of value-based management Address underperforming & ginal return units FY24-FY26 success factors Deliver sustainable result from HPC turnaround Critically assess value unlocking options 25
Slide 26: The evolution of Libstar
The evolution of Libstar THE PRESENT 2017 — 2022 > Exclusively decentralised > Accelerate clustering & integration > Diversified portfolio > Simplify portfolio > Capital reinvestment > Capital prioritisation in top 6 divisions THE FUTURE 2024 — 2026 > Top 6 decentralised; more coordination in remain
Slide 27: Update on B-BBEE, share buybacks & ESG
Update on B-BBEE, share buybacks & ESG Group-wide B-BBEE progress Group view on share buybacks > Achieved significant improvement across all levels of B-BBEE scorecard, but ownership remains a challenge > Improvement expected in FY22 rating with a focus to continue to improve the rating in the years
Slide 28: Outlook
LIBSTAR
Slide 29: 2023 Group outlook
2023 Group outlook Impact of load-shedding remains severe: NWC levels to remain elevated > R6.3m additional generator capacity added post year-end > Operations capable of servicing market in stage 6 load- shedding but at significant cost > Water contingency in place but storage capacity limited + In
Slide 30: Questions & Answers
LIBSTAR Questions & Answers
Slide 31: Supporting data
LIBSTAR Supporting data > Income statement > Cash & debt > Category contributions > Strategy & innovation
Slide 32: Challenges: input costs, under-recovery and load-shedding
↑ > Rising input costs of raw materials & packaging ↓ > Under-recovery of overhead costs in export-facing divisions > Unprecedented levels of load-shedding
Slide 33: Income statement reconciliation
Income statement reconciliation Reconciliation between Normalised EBITDA, Normalised earnings & Normalised headline earnings (R’m) | 2022 Change 2021 Normalised EBITDA Lesee 1 032.3 -4.1% 1077.0 Depreciation and amortisation -342.3 -357.1 Net finance cost -166.1 -164.6 Impairments -292.2 -102.6 Taxa
Slide 34: Income statement — Normalised EPS & HEPS
Income statement — Normalised EPS & HEPS | nae Change 2021 Normalised earnings (R’m) 111.7 -68.3% 352.4 Normalised headline earnings (R’m) 389.1 -11.7% 440.7 WANOS (million) 595.8 595.8 Normalised EPS (cps) 18.8 -68.2% 59.1 Normalised HEPS (cps) 65.3 -11.8% 74.0 NOTE: Further detail available in app
Slide 35: Impairments
Impairments The Group recognised impairments of intangible assets attributable to four divisions in the total amount of R277 million (net of tax). The main factor influencing the impairment per division is outlined below: Denny Mushrooms Retailer Brands The loss of production volume stemming from th
Slide 36: Breakdown of open FEC exposure
Breakdown of open FEC exposure Quarter Dealt Amount (Rm) Forward Rate FEC Cover (Rm) FEC spot rate on 31 Dec 2022 Buy (Imports) 2023-Q1 100.2 +EUR 3.2 18.04 58.3 18.25 +USD 2.4 17.68 41.9 17.07 2023-Q2 62.3 +EUR 17 18.00 30.6 18.43 +USD 1.8 17.59 31.7 A7AT 2023-Q4 3.6 +EUR 0.2 19.00 18.96 Total open
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Slide 38: Breakdown of net investing & net financing activities
Breakdown of net investing & net financing activities (R'm) Net investing activities Capital expenditure Sale of PPE Sale of division Payment for acquisition Net financing activities Principal elements of lease payments Net movement from term loans and asset-based financing Dividend paid -299 38
Slide 39: 5-year net debt trend
5-year net debt trend Net Gearing calculation = Net debt : Normalised EBITDA (Excluding IFRS 16) (R'm) 2.500 2.0 2 000 1.5 1500 1 000 500 2018 2019 2020 2021 2022 mmm Normalised EBITDA mam Net interest-bearing debt | <@®= Net gearing ratio (LHS) (LHS) (RHS) channels & markets Notes: 1. R1.1bn in unu
Slide 40: Net debt structure
Net debt structure Facility Maturity rae 2021 (R’m) date margin Utilised Debt structure Facility A 1000 Dec-26 1.70% 1000 1000 Facility B 150 Dec-24 1.60% 150 150 Facility C 200 Dec-25 1.65% 120 200 Facility D 350 Dec-26 1.70% - - Total term loans 1270 1350 . Prime vehicle fait 650 N/A sess 332 335
Slide 41: Summary of key financial ratios
Summary of key financial ratios | 2022 | 2021 Targets Gearing ratio (net debt to normalised EBITDA) Gx 1.2x Optimal range 1.0-2.0x Cash from operations before working capital changes R1 008m R1 011m Cash generative Cash generated from operating activities R529m R786m Cash generative Cash conversion
Slide 42: Supporting data
LIBSTAR Bas FRESH 7) | PORTABELLINI a MUSHROOMS Supporting data > Income statement > Cash & debt > Category contributions > Strategy & innovation
Slide 43: Libstar categories
Libstar categories a ° xr & cu Umatie irs FING Ts (Value-added dairy) (Meat products) (Value-added dairy and deli) (Fresh mushrooms) (Convenience) (Baby food, Ne ready made frozen meals) GROCERIES n 9 & ri © | CapeWerbedpice™ ‘ony, CAPE COASTAL oetonaians LIBSTAR Ci wie rs : Ne (Dry condiments) (Wet
Slide 44: Category revenue contributions
Category revenue contributions 2022 2021 PERISHABLES 49.0% GROCERIES 30.6% 31.0% SNACKS & CONFECTIONERY Revenue Revenue BAKING & BAKING AIDS —_—- HOUSEHOLD & PERSONAL CARE yy 61% "9% —-s 6.0% 8.0% 44
Slide 45: Category Normalised EBITDA contributions
Category Normalised EBITDA contributions 2022 2021 9, 38.7% EBITDA’ EBITDA* y y / yl HOUSEHOLD & PERSONAL CARE _ 9.2% 9.0% 1.1% 7.2% 0.0% 8.0% ’ Before allocation of corporate costs 45
Slide 46: Perishables: divisional contribution to EBITDA
LIBSTAR PERISHABLES Divisional contribution to EBITDA Weighted contribution to change Incl. in Normalised EBITDA IFRS 16 88% of Lancewood -1.9% category EBITDA Finlar Fine Foods +7.1% Rialto +0.5% Denny Mushrooms +1.6% Millennium Foods +1.2% Umatie - 46
Slide 47: Groceries: divisional contribution to EBITDA
GROCERIES LIBSTAR Divisional contribution to EBITDA 84% of category EBITDA Weighted contribution to change Incl. in Normalised EBITDA IFRS 16 Cape Herb & Spice -18.5% Rialto +0.6% Dickon Hall Foods +10.0% Cape Coastal Honey +0.3% Cecil Vinegar -2.2% Montagu Foods = Khoisan Gourmet -2.9% Cape Foods +
Slide 48: Divisional contribution to EBITDA
Divisional contribution to EBITDA LIBSTAR SNACKS & CONFECTIONERY Weighted contribution to change Incl. in Normalised EBITDA IFRS 16 400% of Ambassador Foods -7.5% category EBITDA K Snacks +2.1% 48
Slide 49: Baking & Baking Aids: divisional contribution to EBITDA
LIBSTAR BAKING & BAKING AIDS Divisional contribution to EBITDA Weighted contribution to change Incl. in Normalised EBITDA IFRS 16 Amaro Foods -0.1% 100% of , category Retailer Brands -18.7% EBITDA Cani Artisan Bakers +4.7% 7 - % 49
Slide 50: Divisional contribution to EBITDA
Divisional contribution to EBITDA LIBSTAR Household & Personal Care Weighted contribution to change Incl. in Normalised EBITDA IFRS 16 100% of category HPC -4.6% EBITDA -4.6% 50
Slide 51: Supporting data
LIBSTAR Supporting data > Income statement > Cash & debt > Category contributions > Strategy & innovation .
Slide 52: Libstar’s over-arching strategy
Libstar’s over-arching strategy Brand promise: From our Home to Yours. 52
Slide 53: Disclaimer
LIBSTAR Disclaimer 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