Lotus Bakeries NV · EURONEXT:LOTB
Lotus Bakeries NV — Investor Presentation (2021)
45 slides from Lotus Bakeries NV's investor presentation, 2021
Slide 1: Introduction to Lotus Bakeries Investor Relations Deck
INTRODUCTION TO LOTUS BAKERIES INVESTOR RELATIONS DECK
Slide 2: Presenting Lotus Bakeries: 2020 key figures
PRESENTING 2020 SALES: €663 MILLION LOTUS 10-YEAR CAGR LOTUS BISCOFF: 13% BAKERIES LOTUS NATURAL FOODS BRANDS DOUBLED SINCE 2015* 20.5% REBITDA MARGIN 2020 €82.5 MILLION NET RESULT 2020 88%** FCF CONVERSION 2020 recyclable packaging 100% by 2025 (already 96.8% end of 2020) 0.8 Net Financial Debt / R
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
AN IMPECCABLE A DECADE OF STRONG GROWTH TRACK RECORD OF in €M Lotus Bakeries Group - Sales SUSTAINABLE GROWTH 700 600 10% CAGR 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 4 — Lotus Bakeries — Building Global Brands
Slide 5: Three Pillars: A Focused and Proven Strategy
THREE LOTUS BISCOFF LOTUS NATURAL FOODS LOTUS LOCAL HEROES PILLARS: A FOCUSED Share of sales** 52% 21% 27% AND PROVEN STRATEGY Historic CAGR 13% 13% * 40% 2% (2010 – 2020) (2015 – 2020) (Q2 2021 - post-COVID) (2010 – 2020) Strategic Build Lotus Biscoff to Accelerate growth of Lotus Secure market amb
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 — Building Global Brands
Slide 8: Build Lotus Biscoff to a Top 3 Global Cookie Brand
BUILD LOTUS BISCOFF TO A TOP 3 GLOBAL COOKIE BRAND
Slide 9: Lotus Biscoff: A History in the Making
First Lotus Biscoff The birth of Cookie served Distribution of the unique with coffee in Lotus Biscoff Going east and Lotus Biscoff restaurants to neighbouring starting the LOTUS BISCOFF Cookie and cafés countries export to Asia A HISTORY IN THE 1932 1956 1960 1980 MAKING Lotus Biscoff International
Slide 10: 6 Continents, 1 Favourite Biscuit
6 CONTINENTS, 1 FAVOURITE BISCUIT EUROPE ASIA 1.9 BIL NUMBER OF LOTUS BISCOFF COOKIES SOLD 374.4 MIL NORTH AMERICA 224.9 MIL OCEANIA 3.0 MIL 2008 TOTAL OF AFRICA 2,494,482,306 0.8 MIL LOTUS BISCOFF 10 — Lotus Bakeries — Building Global Brands
Slide 11: Accelerating Globalisation
ACCELERATING x 1.9 GLOBALISATION EUROPE ASIA x 3.1 3.5 BIL 1.2 BIL x 5.1 NORTH AMERICA 1.1 BIL x 18.2 OCEANIA SOUTH AMERICA NEW 56.0 MIL 8.6 MIL x 67.4 2020 TOTAL OF AFRICA 5,933,252,116 57.1 MIL LOTUS BISCOFF 11 — Lotus Bakeries — Building Global Brands
Slide 12: Lotus Biscoff 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* +30 Low Time LOTUS BISCOFF *% of households buying a Biscoff product at least once a year. 12 — Lotus Bakeries — Building Global Brands
Slide 13: 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 13 — Lotus Bakeries — Building Global Brands
Slide 14: Long-Term Potential for Household Penetration Globally
LONG-TERM POTENTIAL* FOR HOUSEHOLD PENETRATION GLOBALLY COUNTRIES MOVING UP IN HOUSEHOLD PENETRATION PHASE OR AT +20% LOTUS BISCOFF *Management ambition 14 — Lotus Bakeries — Building Global Brands
Slide 15: Bringing Biscoff Taste into Large Global Product Categories
WE ARE BRINGING OUR UNIQUE BISCOFF TASTE INTO LARGE GLOBAL PRODUCT CATEGORIES LOTUS BISCOFF 15 — Lotus Bakeries — Building Global Brands
Slide 16: Progressive Roll Out to Large Global Product Categories
PROGRESSIVE ROLL OUT TO LARGE GLOBAL PRODUCT CATEGORIES 1 2 3 4 THE SWEET SPREAD THE ICE CREAM THE SANDWICH COOKIE THE CHOCOLATE CATEGORY CATEGORY CATEGORY CATEGORY 2008 2009 2020 2020 LAUNCH IN BELGIUM LAUNCH IN BELGIUM LAUNCH IN BELGIUM, LAUNCH IN BELGIUM FOLLOWED BY FRANCE AND FRANCE, UK AND US T
Slide 17: Our Ambition: Continue on the Double Digit Growth Path
OUR AMBITION: 600 CONTINUE ON 530 13% CAGR THE DOUBLE 500 DIGIT GROWTH 465 10% CAGR PATH 400 Sales in Million Euro 300 13% CAGR 288 200 162 100 83 0 2010 2015 2020 2025 LOTUS BISCOFF 17 — Lotus Bakeries — Building Global Brands
Slide 18: Ambition to Become a Top 3 Cookie Brand
AMBITION TOP WORLDWIDE COOKIE BRANDS RANKING TO BECOME 2020 LONG-TERM A TOP 3 RETAIL SALES HISTORIC COOKIE BRAND BRANDS COUNTRY COMPANY VALUE USD (1) CAGR (1) 1 > 1 Bio 0% - 7% 1 2 > 1 Bio 0% - 7% 2 3 brand - - < 1 Bio 0% - 7% 3 4 brand - - < 1 Bio 0% - 7% 4 brand 5 brand - - < 1 Bio 0% - 7% 5 brand
Slide 19: Natural Foods
NATURAL FOODS ACCELERATE GROWTH OF LOTUS NATURAL FOODS THROUGH INTERNATIONALISATION, INNOVATION AND ACQUISITIONS NATURAL FOODS 19 — Lotus Bakeries — Building Global Brands
Slide 20: Consumers Are Shifting Towards Healthier Snacks
CONSUMERS ARE SHIFTING Younger generations, TOWARDS Gen Z & Millennials snack significantly 90% of people look for healthier snacks 40% HEALTHIER more than older generations (2) (3) SNACKS EXPECT TO PAY A PREMIUM FOR HEALTHY/FUNCTIONAL SNACKS (1) Healthy snacks grow at double the rate of overall sna
Slide 21: But What Is a Healthier Alternative?
BUT WHAT IS UNPROCESSED NUTS & FRUIT A HEALTHIER NO ADDED SUGAR ALTERNATIVE? GRAIN & CEREAL GLUTEN FREE FIBRES WHOLEFOODS 100% NATURAL CALORIE CONTROL NO ADDITIVES NATURAL FOODS 21 — Lotus Bakeries — Building Global Brands
Slide 22: Wholefoods!
WHOLEFOODS! RAW FOODS PRESERVING THEIR VITAMINS AND MINERALS, WHERE INGREDIENTS THEMSELVES ARE REAL AND UNPROCESSED ... FOOD AS NATURE INTENDED! NATURAL FOODS 22 — Lotus Bakeries — Building Global Brands
Slide 23: Bars … Food as Nature Intended
A handful of natural BARS … ingredients, minimally processed in order to keep FOOD AS NATURE all the good stuff inside. INTENDED JUST FRUIT AND NUTS. THAT’S IT! NATURAL FOODS 23 — Lotus Bakeries — Building Global Brands
Slide 24: Mass Brand That Appeals to All
WE KNOW IS THE IS A SOLUTION FOR ALL MASS BRAND PEOPLE SEARCHING FOR TASTY, HEALTHY THAT APPEALS AND CONVENIENT TO ALLSTUDENTS YOUNG MUMS BUSY PROFESSIONALS SNACKS ETHICALLY AWARE... NATURAL FOODS 24 — Lotus Bakeries — Building Global Brands
Slide 25: BEAR Fruit Rolls … Food as Nature Intended
BEAR FRUIT ROLLS … FOOD AS NATURE INTENDED Simple ingredients: apples, pears and SIMPLE & MINIMAL strawberries. Absolutely nothing else! INGREDIENTS NATURAL FOODS 25 — Lotus Bakeries — Building Global Brands
Slide 26: BEAR Appeals to All Families with Kids
BEAR APPEALS BEAR OFFERS THE TO ALL FAMILIES SOLUTION FOR WITH KIDS PARENTS & KIDS TO MAKE HEALTHY SNACKING EASIER & MORE FUN Quality time with kids offering Health conscious Convenience seeking snacks that kids like natural & healthy snacks mess free & easy on the go NATURAL FOODS 26 — Lotus Bakeri
Slide 27: All Brands Are Showing Growth
ALL BRANDS 120 ARE SHOWING GROWTH 100 Sales in Million Euro 80 60 40 URBAN FRUIT TREK KIDDYLICIOUS 20 BEAR 0 2015 2020 NATURAL FOODS 27 — Lotus Bakeries — Building Global Brands
Slide 28: Strategy Better for You Platform
STRATEGY 1. ACCELERATE INTERNATIONALISATION BETTER FOR OF CURRENT BRAND PORTFOLIO YOU PLATFORM 2. ACCELERATE NPD IN EXISTING AND “LOTUS NATURAL ADJACENT CATEGORIES 3. GROWTH THROUGH FOODS” ACQUISITIONS NATURAL FOODS 28 — Lotus Bakeries — Building Global Brands
Slide 29: Lotus Natural Foods Flywheel Effect
LOTUS NATURAL FOODS FLYWHEEL EFFECT PORTFOLIO OF UK LEADING BRANDS MERGERS AND ACQUISITIONS COMMERCIAL SYNERGIES LOTUS NATURAL FOODS ACCELERATE NPD IN EXISTING AND ADJACENT CATEGORIES INTERNATIONALISATION NATURAL FOODS 29 — Lotus Bakeries — Building Global Brands
Slide 30: Accelerated Internationalisation of Current Brand Portfolio
ACCELERATED INTERNATIONALISATION OF CURRENT BRAND PORTFOLIO IT WILL BE THE BIGGEST GROWTH ENGINE 23% 6% 118 MIO 50% EUR 63 MIO EUR 2020 Sales UK 2015 CAGR 2015-2020: 13% Sales International NATURAL FOODS 30 — Lotus Bakeries — Building Global Brands
Slide 31: FF 2032 Will Contribute to M&A Pipeline
CURRENT FF2032 PORTFOLIO FF 2032 WILL CONTRIBUTE TO €40M M&A PIPELINE, corporate venture fund of Lotus Bakeries AND ALLOW TO SAVOURY SNACKING SAVOURY SNACKING CLOSELY FOLLOW Invests early in promising brands and MARKET TRENDS entrepreneurs Specific focus on the better-for-you food & drinks space Pos
Slide 32: ESG at the Heart of What We Do
ESG AT THE HEART OF WHAT WE DO 32 — Lotus Bakeries — Building Global Brands
Slide 33: ESG at the Heart of What We Do
ESG AT THE HEART OF WHAT WE DO Environmental Social Community Already a leader in recyclable packaging, Near the top of the pack in gender diversity 100% RSPO certified Palm oil target 100% by 2025 One of very few packaged food players to achieve 52 48 97 F M 100% RSPO certification by meeting strin
Slide 34: Strong ESG Credential Recognised by Rating Agencies
STRONG ESG CREDENTIAL RECOGNISED BY RATING AGENCIES 19.1 LOTUS BAKERIES SUSTAINALYTICS* SCORE OF 24.0 IS 23.0 TOP 3% IN PACKAGED FOODS 24.0 AND TOP 10% IN FOOD PRODUCTS 25.8 28.9 31.8 34.4 *The lower the score, the better 34 — Lotus Bakeries — Building Global Brands
Slide 35: Financials
FINANCIALS STRONG TOP LINE GROWTH WITH EXPANDING PROFITABILITY 35 — Lotus Bakeries — Building Global Brands
Slide 36: Strong Top Line Growth with Expanding Profitability
STRONG TOP LINE GROWTH WITH EXPANDING PROFITABILITY SALES REBITDA 9% CAGR 10.9% CAGR 663 136 613 124 20.5% 556 110 20.2% 19.8% 2018 2019 2020 2018 2019 2020 REBITDA IN €M SALES IN €M REBITDA MARGIN % 2018-2020 CAGR % 2018-2020 CAGR % 36 — Lotus Bakeries — Building Global Brands
Slide 37: A Stable Cost Structure
A STABLE COST STRUCTURE Raw materials, packaging Services Employee cost and co-manufacturing (in €M) (in €M) (in €M) 184.8 197.8 216.4 150.7 169.0 176.8 112.0 123.5 137.1 (% of revenue) (% of revenue) (% of revenue) 33.2% 32.3% 32.6% 27.1% 27.6% 26.7% 20.1% 20.2% 20.7% 2018 2019 2020 2018 2019 2020
Slide 38: Delivering Strong HY 2021 Results
DELIVERING STRONG HY 2021 RESULTS Sales Growth (%) Sales Growth (in €M) REBITDA % on sales 13.0 42.0 20.7 21.2 20.0 20.2 8.9 8.4 8.1 25.7 25.1 25.4 HY 2 HY 1 HY 2 HY 1 HY 2 HY 1 HY 2 HY 1 HY 2 HY 1 HY 2 HY 1 2019 2020 2020 2021 2019 2020 2020 2021 2019 2020 2020 2021 38 — Lotus Bakeries — Building G
Slide 39: Footprint and Capex
FOOTPRINT AND CAPEX Capex Key Expansion Projects 2017 – 2020 Key Expansion Projects 2021 – 2023 (in €M) 34 31 A 3 year investment program 28 of 150 Million Euro Biscoff plant - Lembeke Biscoff plant - Lembeke Maintenance Plant 3 and new Biscoff line Dough Room Expansion Sandwich Cookie line Sandwich
Slide 40: Strong Balance Sheet with Low Leverage
STRONG BALANCE SHEET WITH LOW LEVERAGE AND LIMITED WORKING CAPITAL REQUIREMENTS Key Balance Sheet Components 623 Fixed Assets 641 530 4 Working Capital -3 -10 434 Equity 402 347 118 Net Financial Debt* 139 96 2020 2019 2018 -100 0 100 200 300 400 500 600 700 *Including IFRS16 40 — Lotus Bakeries — B
Slide 41: And with a Powerful Cash Flow Engine
AND WITH A POWERFUL CASH FLOW ENGINE 2018 2019 2020 REBITDA 110.3 123.6 135.7 CHANGE IN WORKING CAPITAL -5.0 -7.0 -6.6 CAPEX MAINTENANCE -11.7 -12.4 -9.8 FREE CASH FLOW 93.6 104.1 119.3 CASH CONVERSION 85% 84% 88% EXPANSION CAPEX -30.9 -34.0 -10.4 FREE CASH FLOW AFTER EXPANSION CAPEX 62.7 70.1 108.9
Slide 42: We Are Creating Strong Shareholder Value
WE ARE CREATING STRONG SHAREHOLDER VALUE EPS growth Dividend growth in euro / share in euro / share 35.5 32.0 29.0 102.0 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 2001 2004 2007 2010 2013 2016 2020 42 — Lotus Baker
Slide 43: 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 44: Key Messages
KEY MESSAGES Lotus Bakeries has shown strong growth Lotus Bakeries has a strong Lotus Bakeries has two future- over the recent decade and has an Balance Sheet and low leverage immaculate and unparalleled track record proof growth engines with Lotus with NFD / REBITDA below 1 with of delivering year
Slide 45: Thank You
THANK YOU