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HALF YEAR RESULTS 15 May 2025 1
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Disclaimer ─ forward looking and synergy statements Certain statements made in this document are, or may be deemed to be, forward‐looking. These represent expectations for the Group’s business, and involve known and unknown risks and uncertainties, many of which are beyond the Group’s control. The Group has based these forward‐looking statements on current expectations and projections about future events based on information currently available to the Group. The forward-looking statements contained in this document include statements relating to the financial condition, results of operations, business, viability and future performance of the Group and certain of the Group’s plans and objectives. These forward-looking statements include all statements that do not relate only to historical or current facts and may generally, but not always, be identified by the use of words such as ‘will’, ‘aims’, achieves’, ‘anticipates’, ‘continue’, ‘could’, ‘develop’, ‘should’, ‘expects’, ‘is expected to’, ‘may’, maintain’, ‘grow’, ‘estimates’, ‘ensure’, ‘believes’, ‘intends’, ‘projects’, ‘sustain’, ‘targets’, or the negative thereof, or similar future or conditional expressions, but their absence does not mean that a statement is not forward-looking. By their nature, forward-looking statements are prospective and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect the Group's current expectations and assumptions as to such future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. There may be risks and uncertainties that the Group is unable to predict at this time or that the Group currently does not expect to have a material adverse effect on its business. You should not place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this announcement. The Group expressly disclaims any obligation to publicly update or review these forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law. Statements of estimated costs savings and synergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties and contingencies. As a result, the costs savings and synergies referred to in this presentation may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. No statement in this presentation (other than the Profit Forecast) should be construed as a profit forecast or interpreted to mean that the combined group’s earnings in the first full year following completion of the transaction, or in any subsequent period, would necessarily match or be greater than or be less than those of Greencore or Bakkavor for the relevant preceding financial period or any other period. For the purposes of Rule 28 of the Takeover Code, the quantified financial benefits statement contained in this presentation is the responsibility of Greencore and the Greencore directors. The bases of belief, principal assumptions and sources of information in respect of any quantified financial benefits statement are set out on in Appendix 5 of the announcement published on the date of this presentation in connection with the acquisition, available on Greencore’s website at www.greencore.com/investor-relations. 2H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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1. Welcome & Introduction Dalton Philips, Chief Executive Officer 2. Greencore H1 Results Catherine Gubbins, Chief Financial Officer Dalton Philips, Chief Executive Officer 3. Q&A Dalton Philips, Chief Executive Officer Catherine Gubbins, Chief Financial Officer Nigel Smith, Chief Strategy, Planning and Development Officer Colm Farrell, Investor Relations Director Today’s agenda 3
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INTRODUCTION Dalton Philips CEO 4
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H1 RESULTS: FINANCIAL REVIEW Catherine Gubbins CFO For the half year ended 28 March 2025 5
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H1 Results: Detailed financial summary Returns Growth Profitability Cash Conversion Leverage 6 13.1% +290 bps vs. H1 24 +6.5% +160bps vs. H1 24 78.6% 0.8x £m unless otherwise specified H1 25 H1 24 Change Revenue 922.0 866.1 +6.5% Pro Forma Revenue Growth +6.5% Adjusted EBITDA 73.1 55.9 +30.8% Adjusted Operating Profit 45.2 28.3 +59.7% Adjusted Operating Margin 4.9% 3.3% +160 bps Basic EPS (pence) 4.5 2.5 +80.0% Adjusted EPS (pence) 6.1 2.8 +117.9% Free Cash Flow 37.8 (26.5) +£64.3m Free Cash Flow Conversion 78.6% 36.7% Net Debt (excluding lease liabilities) (136.2) (198.0) +£61.8m Net Debt: EBITDA as per financing agreements 0.8x 1.4x +0.6x Return on Invested Capital (“ROIC”) 13.1% 10.2% +290 bps H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Strong progress made against medium-term organic targets 7 Medium-Term TargetH1 25Metric Adjusted Operating Profit MarginProfitability Revenue GrowthGrowth Free Cash Flow Conversion Cash Conversion Return on Invested Capital (ROIC) Returns Net Debt / Adjusted EBITDA 1Leverage 13.1% +290 bps vs. H1 24 +6.5% +160bps vs. H1 24 78.6% 0.8x >15% 3-5% >7% >55% 1-1.5x Last 12 months margin of 6.1% H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 1. As measured under financing agreements.
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Strong volume growth underpinning revenue progression Reported revenue vs. H1 24: +6.5% • Net new business wins, inclusive of annualisation from FY24: +2.9% • Increase in underlying volumes and product mix: +1.0% • Inflation recovery and pricing impact of +2.6% 866.1 922.0 H1 24 Reported Revenue (£M) 2.9% Net new business wins 1.0% Underlying volume growth and mix 2.6% Inflation and pricing impacts H1 25 Reported Revenue (£M) +6.5% 8H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Adjusted Operating Profit progression driven by continued focus on proactive cost management 9 28.3 45.2 H1 24 Adjusted Operating Profit (£M) H1 25 Adjusted Operating Profit (£M) +59.7% Underlying volume growth with customers Annualisation of new business wins Commercial excellence across innovation, procurement and price Continued implementation of the operational excellence agenda, including automation Ongoing cost effectiveness and proactive cost management Inflationary headwinds, particularly with labour + + + + + - H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Improved cash conversion, partially from working capital inflows 10 Free cash flow £37.8m Free cash flow conversion (LTM) 1 78.6% Working capital inflow £4.1m Maintenance capital expenditure £12.1m 73.1 37.8 4.1 12.1 5.8 11.4 6.9 6.9 3.7 Adjusted EBITDA (£M) Net Working Capital Maintenance Capital Expenditure Exceptional Charges Interest and Tax Pensions Leases Other Free Cash Flow (£M) 1. Free cash flow conversion last twelve months (LTM)H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Reminder: Capital allocation to maximise shareholder value 11 Capital Allocation Framework Medium-term leverage at 1-1.5x Organic Growth • Investing to enable growth in core Dividend • Continuation of progressive dividend Inorganic Growth • Disciplined M&A to drive value creation Excess Return to Shareholders • Where appropriate, periodic return of surplus capital to shareholders 1 2 3 4 H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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H1 RESULTS: STRATEGIC & OPERATING UPDATE Dalton Philips CEO For the half year ended 28 March 2025 12
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13 Our Purpose: Our Ambition: To lead the way in convenience food Strengthen our Core Grow and Expand Deploy and embed the Greencore way of winning Build a strong growth portfolio People At The Core Lasting Partnerships Delivery Excellence Sustainable Choices 13 Great Food H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Strong progress against our FY25 scorecard Delivering the Greencore way of winning Maintain growth ahead of market Continue to deliver Operational Excellence savings Drive revenue, mix and margin Build a robust automation programme Deliver against sustainability targets Reduce colleague attrition Drive Making Business Easier transformation Commercial Excellence Operational Excellence Enablers H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 14
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Commercial Excellence Volume, 26 weeks to 28 March 2025 15 Delivering volume growth ahead of the market, supported by new business wins Total Grocery1 Total Greencore (underlying volume growth) Total Greencore (overall volume growth) 0.2% 0.5% 2.5% New business wins to be onboarded in H2 FY25: Contributing to continued improved returns trajectory across categories Expansion of food - to - go offering within discount channel New cuisine win in Grocery New hot offering rolled out with market leading food - to - go specialist H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 1. Kantar – 26 weeks ending 22 March 2025
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Operational Excellence productivity gain (increase in units per labour hour) vs. H1 24 4% average service levels99.1% annualised indirect labour savings delivered in H1 25 1 £6m of sites and depots graded AA+ or AA in BRC audits 100% Delivering quick wins with 19 automation projects deployed in H1 25… …whilst progressing our longer-term ambitions to deliver 10% direct labour saving from automation <picture> Automated vegetable slicing at Salads site <picture> Automated cheese depositing at Ready Meals site Deploying Operational Excellence, whilst building a future-fit automation programme H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 1. £3m realised in H1, to annualise in remainder of year 16
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Enablers Continued momentum in Making Business Easier transformation, with “quick wins” deployed in H1 delivering results: Autonomous negotiation tool Capex approval tool • Launch of Pactum – AI tool to conduct negotiations on indirect spend within set guardrails • Result: c. 6% savings in initial trial, with scope to increase significantly • Roll out of internal tool to streamline Capex reviews and approvals • Result: Approvals have doubled, with time to approve halved Colleague attrition 400 bps Food waste 2 14 bps Scope 1 & 2 emissions 3 -2.8% Water usage 4 -1.0% 1. FY25 H1 position vs. FY24 Y/E 2. Food Waste as a % of total food handled 3. Total gross Scope 1 & 2 emissions (Co2e) 4. Water withdrawal – manufacturing only Delivering Making Business Easier programme and progressing key enablers H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 17 FY25 YTD1 FY25 YTD1 vs. H1 FY24 vs. H1 FY24
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18 Outlook 18 Strong progress towards medium-term financial targets, particularly returns Encouraged by the volume momentum and the new business wins to be onboarded Continued strong delivery in operational excellence agenda, including automation Upgrading FY25 Adjusted Operating Profit guidance to £114-117m(1,2), above pre-pandemic levels of profitability 1. Previous guidance given as part of Q2 FY25 trading update on 1 April 2025 was FY25 Adjusted Operating Profit in the range of £112-115m. 2. With the consent of Bakkavor Group plc, the UK Panel on Takeovers and Mergers has confirmed that the statement in relation to FY25 Adjusted Operating Profit (“Profit Forecast”) constitutes an ordinary course profit forecast for the purposes of Note 2(b) to Rule 28.1 of the Takeover Code, to which the requirements of Rule 28.1(c)(i) of the Takeover Code apply. The additional disclosures required by the Takeover Code are set out in the Appendix. H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Q&A
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Greencore FY25 guidance H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025 20 £m FY25 FY24 Depreciation and Amortisation(1) c.£60m £56.2m Making Business Easier Exceptional Items c.£10m-£15m £4.0m Capital Expenditure c.£40m £32.4m Cash Interest(2) c.£21m £19.5m P&L Interest(2) c.£20m £20.5m Cash Tax c.£6m £5.4m Adjusted Effective Tax Rate 23.0%–24.5% 22% Pension Deficit Contributions & Costs c.£12m £11.5m (1) excludes amortisation of acquisition related intangibles (2) on interest bearing cash and cash equivalents and borrowings
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Definitions of APMs (1/2) Pro Forma Revenue Growth The Group uses Pro Forma Revenue Growth as a supplemental measure of its revenue performance. The Group views Pro Forma Revenue Growth as providing a guide to underlying revenue performance and is calculated by adjusting Group revenue for the impact of acquisitions, disposals, foreign currency, differences in trading period lengths and other non-recurring items in each reporting period. Adjusted EBITDA, Adjusted Operating Profit & Adjusted Operating Margin The Group calculates Adjusted Operating Profit as operating profit before amortisation of acquisition-related intangibles and exceptional items. Adjusted EBITDA is calculated as Adjusted Operating Profit plus depreciation and amortisation of intangible assets. Adjusted Operating Margin is calculated as Adjusted Operating Profit divided by Group revenue. Adjusted Profit Before Tax (PBT) The Group calculates Adjusted PBT as profit before taxation, excluding tax on share of profit of associate and before exceptional items, pension finance items, amortisation of acquisition-related intangibles, foreign exchange (‘FX’) on inter– company and external balances where hedge accounting is not applied, and the movement on the fair value of derivative financial instruments and related debt adjustments. Adjusted Earnings and Adjusted Earnings Per Share (‘EPS’) Adjusted Earnings is calculated as Profit attributable to equity holders (as shown on the Group’s Income Statement) adjusted to exclude exceptional items (net of tax), the effect of foreign exchange (FX) on inter–company and external balances where hedge accounting is not applied, the movement in the fair value of all derivative financial instruments and related debt adjustments, the amortisation of acquisition related intangible assets (net of tax) and the interest expense relating to legacy defined benefit pension liabilities (net of tax). Adjusted EPS is calculated by dividing Adjusted Earnings by the weighted average number of Ordinary Shares in issue during the period, excluding Ordinary Shares purchased by Greencore and held in trust in respect of the Annual Bonus Plan, Performance Share Plan, Employee Share Incentive Plan and Restricted Share Plan. Adjusted EPS described as an APM here is Adjusted Basic EPS. The Group uses the following Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole. 21H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Definitions of APMs (2/2) Capital Expenditure The Group defines Maintenance Capital Expenditure as the expenditure required to maintain/replace existing assets with a high proportion of expired useful life. This expenditure does not attract new customers or create the capacity for a bigger business. It enables the Group to keep operating at current throughput rates but also keep pace with regulatory and environmental changes as well as complying with new requirements from existing customers. This includes expenditure on sustainability related initiatives which replace existing assets. The Group defines Strategic Capital Expenditure as the expenditure required to facilitate growth and generate additional returns for the Group. This is generally expansionary expenditure beyond what is necessary to maintain the Group’s current competitive position and enables the Group to service new customers and/or contracts or to enter into new categories or manufacturing competencies including automation related capital expenditure. Free Cash Flow The Group calculates the Free Cash Flow as the net cash inflow/outflow from operating and investing activities before Strategic Capital Expenditure, acquisition and disposal of undertakings and adjusting for lease payments and dividends paid to non–controlling interests. Free Cash Flow Conversion The Group calculates Free Cash Flow Conversion as Free Cash Flow divided by Adjusted EBITDA. This is calculated on a 12- month basis. Net Debt and Net Debt Excluding Lease Liabilities Net Debt is used by the Group to measure overall cash generation of the Group and to identify cash available to reduce borrowings. Net Debt comprises current and non- current borrowings less net cash and cash equivalents and bank overdrafts. Net Debt excluding Lease Liabilities is a measure used by the Group to measure Net Debt excluding the impact of IFRS 16 Leases. Net Debt excluding Lease Liabilities is used for the purpose of calculating leverage under the Group’s financing agreements. Return on Invested Capital (‘ROIC’) The Group uses invested capital as a basis for this calculation as it reflects the tangible and intangible assets the Group has added through its capital investment programme, the intangible assets the Group has added through acquisition, as well as the working capital requirements of the business. Invested capital is calculated as net assets (total assets less total liabilities) excluding Net Debt, the carrying value of derivative financial instruments not designated as fair value hedges, and retirement benefit obligations (net of deferred tax assets). Average invested capital is calculated by adding the invested capital from the opening and closing Statement of Financial Position and dividing by two. The Group calculates ROIC as Net Adjusted Operating Profit After Tax (‘NOPAT’) divided by average invested capital. NOPAT is calculated as Adjusted Operating Profit plus share of profit of associates before tax, less tax at the adjusted effective rate in the Group Income Statement which is adjusted for the change in fair value of derivative financial instruments and related debt instruments and exceptional items. 22H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025
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Catherine Gubbins Chief Financial Officer Colm Farrell Investor Relations Director investor.relations@greencore.com Q3 Trading Update Late July FY25 Financial Year End 26 September 2025 FY25 Full Year Results 02 December 2025 IR CONTACTS CALENDAR 23H1 25 RESULTS & 2.7 ANNOUNCEMENT | MAY 2025