Lotus Bakeries NV · EURONEXT:LOTB
Lotus Bakeries NV — FY2021 Earnings Presentation
40 slides from Lotus Bakeries NV's earnings presentation, 2022
Slide 1: Lotus Bakeries Announcement Full Year 2021 Results
LOTUS BAKERIES ANNOUNCEMENT FULL YEAR 2021 RESULTS
Slide 2: Presenting Lotus Bakeries
PRESENTING 2021 SALES: €750 MILLION LOTUS 2021 RECORD SALES GROWTH OF €87 MILLION BAKERIES 20.1% REBITDA MARGIN 2021 €90.7 MILLION NET PROFIT 2021 92%* FCF CONVERSION 2021 LOTUS BISCOFF AND LOTUS NATURAL FOODS CAGR ABOVE RESPECTIVELY 13% AND 14%** recyclable packaging 100% by 2025 (already 97.1% end
Slide 3: Lotus Bakeries Timeline
Creation of a LOTUS Jan Boone appointed new strategic pillar with the BAKERIES The company was established Listing on the Brussels as CEO in succession acquisition of 3 leading, British Acquisition of Acquisition in Belgium by Stock of Karel and healthy snacking TIMELINE Jan Boone Snr Exchange Matth
Slide 4: An Impeccable Track Record of Sustainable Growth
A DECADE OF STRONG GROWTH AN IMPECCABLE in €M Lotus Bakeries Group - Sales TRACK RECORD OF 800 SUSTAINABLE GROWTH 10.5% CAGR 700 600 500 400 300 200 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 5: Three Pillars: A Focused and Proven Strategy
THREE LOTUS BISCOFF LOTUS NATURAL FOODS LOTUS LOCAL HEROES PILLARS: A FOCUSED AND PROVEN Share of sales** 51% 22% 27% STRATEGY Historic CAGR >13% >14% * >2% (2011 – 2021) (2015 – 2021) (2011 – 2021) 2021 Growth 15% 20% 3% Accelerate growth of Lotus Strategic Build Lotus Biscoff Secure market Natural
Slide 6: Global Production Footprint
Lembeke Courcelles Oostakker Eeklo GLOBAL Lotus Biscoff Sandwich cookie Lotus Waffles Lotus Cakes Caramelised Biscuits and Spreads PRODUCTION Lotus Biscoff Spread Lotus Dinosaurus FOOTPRINT Enkhuizen Enkhuizer Biscuits Cake specialties Geldrop Peijnenburg gingerbread Sintjohannesga Peijnenburg ginge
Slide 7: Lotus Bakeries Growth Strategy
LOTUS BAKERIES GROWTH STRATEGY TOMORROW 1 2 3 Build Lotus Biscoff Accelerate growth ESG at the heart to a top 3 global of Lotus Natural of what we do cookie brand Foods through internationalisation, innovation and acquisitions TODAY 7 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 8: Build Lotus Biscoff to a Top 3 Global Cookie Brand
BUILD LOTUS BISCOFF TO A TOP 3 GLOBAL COOKIE BRAND
Slide 9: Build, Accelerate, Expand: Repeatable Model of Success
LOTUS BISCOFF COOKIES REPEATABLE MODEL OF SUCCESS CREATE BUILD ACCELERATE EXPAND High +20% 0%-5% 5%-10% 10%-20% Household Penetration* CN IT JP CA GE KOR AUS US ES FR UK MY SVN TW FI LEB JOR SE BRN BH KSA MLT OM UAE TUR IND IDN AT SG QA NL SVK IR ISR CZ BE RO EG BIH CL HUN BG PL MA CRO PT TUN HK SRB
Slide 10: Household Penetration Is the Leading Indicator for Growth Potential
HOUSEHOLD PENETRATION IS THE LEADING INDICATOR FOR GROWTH POTENTIAL 2021 CREATE 0%-1% CREATE 1%-5% BUILD 5%-10% ACCELERATE 10%-20% EXPAND +20% LOTUS BISCOFF 10 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 11: Our Ambition: Continue on the Double Digit Growth Path
OUR AMBITION: 600 CONTINUE ON 500* THE DOUBLE 500 DIGIT GROWTH PATH 400 Sales in €M 332 > 13% CAGR 300 200 189 100 92 0 2011 2016 2021 2025 LOTUS BISCOFF *Based on double digit CAGR 2021-2025 11 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 12: Geographical Distribution of Biscoff Sales
GEOGRAPHICAL DISTRIBUTION BISCOFF SALES 21% 20% 12% 10% 8% 5% 4% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% OTHER US UK FR BE CN NL GE ES KOR CH KSA CZ ISR UAE AUS CA IT JP LOTUS BISCOFF 12 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 13: Internationalisation of Biscoff: Already 28 Countries
INTERNATIONALISATION OF BISCOFF: ALREADY 28 COUNTRIES ABOVE 1 MILLION EUR OF SALES LOTUS BISCOFF 13 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 14: Jumping from Position 10 to Position 7
JUMPING FROM GLOBAL COOKIE BRAND RANKING POSITION 10 TO POSITION 7 Lotus today Brand 10 Brand 9 Brand 8 Brand 6 Brand 5 Brand 4 Brand 3 Value*: < 1 Bio < 1 Bio < 1 Bio < 1 Bio** < 1 Bio < 1 Bio < 1 Bio < 1 Bio > 1 Bio > 4 Bio *Source: Euromonitor international, December 2021. Category: sweet biscuit
Slide 15: Growth Potential to Become a Top 3 Cookie Brand
GROWTH GLOBAL COOKIE BRAND RANKING POTENTIAL TO BECOME A TOP 3 COOKIE BRAND LONG-TERM Lotus today Lotus Ambition Brand 10 Brand 9 Brand 8 Brand 6 Brand 5 Brand 4 Value*: < 1 Bio < 1 Bio < 1 Bio < 1 Bio < 1 Bio < 1 Bio < 1 Bio < 1 Bio > 1 Bio > 4 Bio *Source: Euromonitor international, December 2021.
Slide 16: Lotus Natural Foods
LOTUS NATURAL FOODS ACCELERATE GROWTH OF LOTUS NATURAL FOODS THROUGH INTERNATIONALISATION, INNOVATION AND ACQUISITIONS
Slide 17: Natural Foods
NATURAL FOODS 17 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 18: Strategy Better for You Platform
STRATEGY 1. ACCELERATE INTERNATIONALISATION BETTER FOR OF CURRENT BRAND PORTFOLIO YOU PLATFORM 2. ACCELERATE INNOVATIONS IN EXISTING AND “LOTUS NATURAL ADJACENT CATEGORIES 3. GROWTH THROUGH FOODS” ACQUISITIONS NATURAL FOODS 18 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 19: Accelerated Internationalisation of Current Brand Portfolio
ACCELERATED INTERNATIONALISATION OF CURRENT BRAND PORTFOLIO IT WILL BE THE BIGGEST GROWTH ENGINE 26% 23% 6% ≈ €140 M ≈ €60 M 2021 Sales UK 2015 CAGR 2015-2021: >14% Sales International NATURAL FOODS 19 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 20: Geographical Distribution Lotus Natural Foods International
30% GEOGRAPHICAL DISTRIBUTION LOTUS 20% NATURAL FOODS INTERNATIONAL (OUTSIDE UK) 9% 9% 5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 2% OTHER US NL BE AUS FR ES IR CA CH CN ISL UAE CZ NW NATURAL FOODS 20 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 21: FF 2032 Could Contribute to M&A Pipeline
FF 2032 COULD CONTRIBUTE TO 40 €M Invests early Specific focus on Possibility to M&A PIPELINE, corporate venture fund in promising brands and the better-for- you food & drinks fully acquire and integrate brands of Lotus Bakeries entrepreneurs space into our better- AND ALLOW TO for-you platform CLOS
Slide 22: The Good Crisp Company
THE GOOD CRISP COMPANY “The Good Crisp Company positions itself as a better-for-you chips brand in a very sizeable market of savoury canister snacks and has already shown strong performance with compelling evidence for future potential. There is a great team in place that I look forward to working w
Slide 23: ESG at the Heart of What We Do
ESG AT THE HEART OF WHAT WE DO
Slide 24: ESG at the Heart of What We Do
ESG AT THE HEART OF WHAT WE DO Environmental Social Community A leader in recyclable packaging, Near the top of the pack in gender diversity target 100% by 2025 Score in top 3% of packaged food companies and top 10% of food product companies 97.1 Total company 96.8 52 48 93.9 F M 100% RSPO certified
Slide 25: Financials
FINANCIALS FULL YEAR 2021 RESULTS
Slide 26: Delivering Strong Full Year 2021 Results
DELIVERING STRONG FULL YEAR 2021 RESULTS Sales REBITDA Free Cash Flow* Net Financial Debt** Dividend in €M in €M in €M in €M in € + 13% + 11% + 17% - 26% + 13% 750 663 151 139 40.0 136 35.5 119 111 82 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 *Excluding expansion CAPEX ** Excluding IFRS 16 2
Slide 27: Delivering Strong Full Year 2021 Results
DELIVERING STRONG FULL YEAR 2021 RESULTS Sales Growth in % Sales Growth in €M REBITDA % on Sales 13.1 87 19.9 19.8 20.2 20.5 20.1 10.1 8.3 56 51 6.2 32 3.3 17 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 27 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 28: Strong Top Line Growth with Expanding Profitability
STRONG TOP LINE GROWTH WITH EXPANDING PROFITABILITY Sales REBITDA 9.4% CAGR 9.7% CAGR 750 151 663 136 20.1% 613 124 20.5% 524 556 110 20.2% 104 19.8% 19.9% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 REBITDA IN €M SALES IN €M REBITDA % ON SALES 2017-2021 CAGR % 2017-2021 CAGR % 28 — Lotus Bake
Slide 29: Income Statement
INCOME STATEMENT IN €M 2021 % sales 2020 % sales SALES 750.3 663.3 RAW MATERIALS, PACKAGING & CO-MANUFACTURING -250.6 -216.4 SERVICES -192.2 -176.8 EMPLOYEE COST -152.9 -137.1 DEPRECIATION AND AMORTIZATION -26.5 -23.7 OTHER OPERATING INCOME AND EXPENSES -4.2 1.8 RECURRENT OPERATING RESULT (REBIT) 12
Slide 30: A Stable Cost Structure
A STABLE COST STRUCTURE Raw Materials, Packaging, Services Employee cost Co-Manufacturing & Intragroup Transport (in €M) (in €M) (in €M) 171.5 184.8 197.8 216.4 250.6 145.6 150.7 169.0 176.8 192.2 105.6 112.0 123.5 137.1 152.9 (% of Sales) 32.7% 33.2% 32.3% 32.6% 33.4% (% of Sales) 27.8% 27.1% 27.6%
Slide 31: Evolution of Recurrent Net Profit
EVOLUTION OF CAGR + 9.6% 100 +9.0% RECURRENT 90 93.9 NET PROFIT 80 86.2 12.5% IN €M 13.0% 70 78.0 70.0 12.7% 60 65.0 12.6% 12.4% 50 40 30 20 10 0 Recurrent net profit as a % on sales 2017 2018 2019 2020 2021 31 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 32: Footprint and Capex
FOOTPRINT AND CAPEX 48 CAPEX 100 Million euro expansion capex in 2022 in €M 34 31 28 Biscoff plant - Lembeke Waffle plant - Courcelles Dough Room New building and Maintenance Sandwich Cookie line new production line Expansion 12 12 12 9 10 10 Biscoff plant - Mebane Plant 2 with 2 additional Biscoff
Slide 33: Investments
INVESTMENTS IN €M 52 49 6 28 60 43 46 37 20 CAPEX ACQUISITIONS AND FF2032 PARTICIPATIONS 2017 2018 2019 2020 2021 33 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 34: Net Financial Debt
NET FINANCIAL 180 171 DEBT* IN €M 150 1.4 130 120 111 0.8 0.9 90 82 60 0.6 30 0 NFD / REBITDA June 2020 December 2020 June 2021 December 2021 *Excluding IFRS 16 34 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 35: Strong Balance Sheet with Low Leverage and Limited Working Capital Requirements
STRONG BALANCE SHEET WITH LOW LEVERAGE AND LIMITED WORKING CAPITAL REQUIREMENTS Key Balance Sheet Components in €M 690 Fixed Assets 623 641 5 Working Capital 4 -3 520 Equity 434 402 95 Net Financial Debt* 118 139 2021 2020 2019 -100 0 100 200 300 400 500 600 700 *Including IFRS 16 35 — Lotus Bakerie
Slide 36: And with a Powerful Cash Flow Engine
AND WITH A POWERFUL CASH FLOW ENGINE 2019 2020 2021 REBITDA 123.6 135.7 151.0 CHANGE IN WORKING CAPITAL -7.0 -6.6 -0.1 CAPEX MAINTENANCE -12.4 -9.8 -11.5 FREE CASH FLOW 104.1 119.3 139.4 CASH CONVERSION 84% 88% 92% EXPANSION CAPEX -34.0 -10.4 -48.2 FREE CASH FLOW AFTER EXPANSION CAPEX 70.1 108.9 91.
Slide 37: We Are Creating Strong Shareholder Value
WE ARE CREATING STRONG SHAREHOLDER VALUE EPS growth Dividend growth 40.0 in euro / share in euro / share 35.5 32.0 29.0 111.8 102.0 19.5 92.8 16.2 79.5 83.2 77.2 14.2 12.4 10.8 57.6 9.8 9.4 8.8 7.8 6.8 5.4 4.4 3.0 2.4 1.4 1.0 0.7 2015 2016 2017 2018 2019 2020 2021 2001 2004 2007 2010 2013 2016 2019
Slide 38: Dividend as a % of Recurrent Net Profit
DIVIDEND AS A % OF RECURRENT 33.3% 33.3% 33.4% 34.6% NET PROFIT 24.1% 21.8% 2016 2017 2018 2019 2020 2021 38 — Lotus Bakeries — Announcement Full Year 2021 Results
Slide 39: Medium Term Financial Ambitions
MEDIUM TERM FINANCIAL AMBITIONS LOTUS BISCOFF DOUBLE DIGIT GROWTH SALES EXTERNAL GROWTH: OPEN FOR M&A OPPORTUNITIES REBITDA MARGIN REMAIN AT HIGH LEVEL OF AT LEAST 20% ON SALES MAINTENANCE CAPEX AVERAGE OF 2% ON SALES EXPANSION CAPEX 150 MILLION OVER PERIOD 2021-2023 DIVIDEND MINIMUM 1/3RD OF RECURR
Slide 40: Thank You
THANK YOU