Slide 1: Final Results for the year ended 30 September 2019
FINAL RESULTS for the year ended 30 September 2019 A LL TREATT
Slide 2: Executive Summary
EXECUTIVE SUMMARY FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2019 “+ Delivering good progress against 2022 strategy @ Profits up despite significant citrus and foreign exchange headwinds & 81% of Group revenue from natural and clean-label products “ Citrus revenue down 10%, substantial fall in ra
Slide 3: Final Results at a Glance
£79.2m Revenue’ 0.5% £112.7m £85.9m £44.5m £41.4m 2015 FINAL RESULTS AT A GLANCE Revenue’ £88.0m £47.1m £40.9m £101.3m £47.1m 2017 Earnings per Share! (11%) 17.82p 2018 £112.7m 2019 Net Operating Margin’ / Return on Capital Employed!’ 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2014 2015 2016 2017 2018
Slide 4: 2019 Financial Review - Income Statement
2019 FINANCIAL REVIEW - INCOME STATEMENT 2019 2018 Change Key Points Year ended 30 September £000 £000 % Revenue "2717 112,163 +0.5% ‘ 1) Fall in citrus oil input prices impacted total revenue by 6%; Citrus 60,823 67,470 “9.9% strong growth in tea, health & wellness and fruit & vegetables categories
Slide 5: Cash Flow Bridge: Net Cash Year End 2018 to 2019
£35.0m £30.0m £25.0m £20.0m £15.0m £10.0m £5.0m £0.0m Net Cash YE 2018 £14.9m EBITDA £5.6m Working Capital CASH FLow (£10.6m) Capex Tax (ea £1.5m £16.0m Dividend Interest Financing and Other Net Cash YE 2019 ) Li 7 lt W
Slide 6: Strategic Drivers
STRATEGIC DRIVERS DELIVERING SUSTAINABLE GROWTH FOR OUR STAKEHOLDERS “4 Diversifying into new categories (slide 11) & Investing in our culture @ New coffee platform launched - specialist @ Collaborative culture expertise 4 Supporting staff development “ Investing for future growth (slides 13,14) Eng
Slide 7: Investing in Our Core Categories
INVESTING IN OUR CORE CATEGORIES 4 Strategic focus on key product categories supporting growth plan to 2022 @ clean-label and natural are strong growth drivers - 81% of Group revenue “ Diversification of portfolio progressing well @ impact of citrus volatility balanced by strong growth in health & w
Slide 8: Strategic Focus - Core Product Categories
STRATEGIC Focus — CORE PRODUCT CATEGORIES 50 % Growth in Sales* - 2019 v 2018 +42% 40 30 423% 20 +16% 10 10% -10 * From continuing operations Citrus Health & Wellness Fruit & Vegetables Herb, Spice & Florals Aroma & HICs 2018 2019 2019 % of Revenue | = fs :
Slide 9: Added-Value Solutions
ADDED-VALUE SOLUTIONS MOVING UP THE VALUE CHAIN é Leveraging existing key customer relationships — Know-how Driving Gross Margin ° oye 26.0% cross-selling opportunities _ & Technical capability and know-how to deliver eO% value-added products and solutions 0% 22.0% & Changing customer engagement mod
Slide 10: Strategy Has Decoupled Group Profits from Orange Oil Price
STRATEGY HAS DECOUPLED THE HISTORIC LINK OF GROUP PROFITS TO ORANGE OIL PRICE £14.0m $14/kg £12.0m s12/kg % ££10.0m s10/kg, £8.0m ; 88/kg Group Profit Before Tax and Exceptional It £6.0m s6/kge 2 8 £4.0m SA /kg £2.0m s2/kg £0.0m Is/kg 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * From continui
Slide 11: Opportunity - Coffee
OPPORTUNITY - COFFEE & New natural coffee portfolio & Expanded US facility provides initial infrastructure to build presence in Ready-to-drink (RTD) market & Technology @ Proprietary technology, know-how and expertise é Coffee roasting @ In-house roasting capability & RTD coffee market @ Valued at c
Slide 12: Routes to Market and Geographical Breakdown of Sales
ROUTES TO MARKET GEOGRAPHICAL BREAKDOWN OF SALES 60% 40% 35% 50% 30% 40% 25% 30% 20% 15% 20% 10% 10% l ; | | | o% on fe o«= Oe o% | ll Flavour Beverage Personal Chemicals Trader/ Food Other North Europe Asia UK — South Ireland China Germany Other Japan Houses Care Distributor America Pacific America
Slide 13: US Expansion
US EXPANSION & $15m capacity driven expansion 6 Significant additional manufacturing capacity to meet demand and support future growth in tea and health & wellness & Modernises and expands our global technical and R&D capabilities “ Doubles capacity in tea, health & wellness and fruit & vegetables c
Slide 14: UK Site Relocation
UK SITE RELOCATION & £36m project — ROI 10-15% - 3 years after completion 6 Includes £17m investment in plant & machinery, laboratories and new technologies & Commenced construction in September 2019 & Completion due late 2020, manufacturing facilities transferred 2020 to 2021
Slide 15: UK Enhanced Capabilities
UK ENHANCED CAPABILITIES Improved client interaction é Technical/Technical collaboration “ Heightened customer experience of Treatt 4 Collaborative hub space driving customer interaction, partnership-based model and product innovation 4 Attractive design and feel to showcase Treatt’s full capacity #
Slide 16: Environmental - Social - Governance
ENVIRONMENTAL - SOCIAL — GOVERNANCE CIRCULAR ECONOMY APPROACH & Environmental performance and strategy “ Governance @ Natural supply chain @ Compliance @ Manage waste & environmental impact - @ Business integrity zero waste to landfill @ Standards @ Purpose-built energy efficient premises “% Social
Slide 17: Current Trading & Outlook
CURRENT TRADING & OUTLOOK Steady start to the new financial year Citrus market price falls largely behind us but unit prices likely to stay on the lower side Natural, “better-for-you” beverage trend playing into Treatt’s strengths; likely to bring further opportunities Coffee platform continuing to
Slide 18: Appendices
APPENDICES
Slide 19: Product Categories
PRODUCT CATEGORIES Citrus Health & Wellness Tea Coffee Fruit & Vegetables Herb, Spice & Floral 6 6 6 6 6 Aroma & HICs Natural flavour of sugar - without carbs or calories Treatt’s largest product category Natural tea flavours Both natural and synthetic offerings create significant market opportuniti
Slide 20: 2019 Financial Review - Cash Flow
2019 FINANCIAL REVIEW — CASH FLOW Year ended 30 September oe oe Operating cash flow 14,895 16,243 Decrease/(Increase) in inventories 3,970 (1,174) Decrease/(Increase) in trade and other receivables 5,293 (9,906) (2) Other working capital (3,614) (1,582) Cash generated from operations 20,544 3,581 Ta
Slide 21: 2019 Financial Review - Balance Sheet
2019 FINANCIAL REVIEW — BALANCE SHEET As at 30 September oe oe Fixed assets £30.3m £20.8m (1) Inventories £36.8m £39.6m (2) Debtors £23.0m £28.8m (3) Creditors (£11.3m) (£15.3m) Working capital £48.5m £53.1m Taxation = (£0.1m) Net cash £16.0m £10.1m Pension deficit (£7.8m) (£3.5m) (4) Net assets hel
Slide 22: Interim/Final Earnings Per Share 2015-2019
INTERIM/FINAL EARNINGS PER SHARE 2015-2019 20 18 16 14 12 10 2015 2016 2017 2018 2019 mHi mH2 * From continuing operations, excluding except items 22 -_— a2 |
Slide 23: Interim/Final Dividend 2009-2019
INTERIM/FINAL DIVIDEND 2009-2019 “Progressive Dividend Policy” 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 mHi mH2 -_— ms
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