Annual General Meeting 29 April 2016 Fyffes plc
Financial highlights 2015 2015 2014 % Change Total revenue 1,222.5m 1,090.9m +12.1% EBITDA 1 56.1m 48.2m +16.4% EBITA 1 45.8m 40.1m +14.2% EPS 2 11.17c +14.0% 12.73c Total dividend per share 2.745c 2.387c +15.0% ROIC 3 16.6% +10.8% 18.4% 1. Before exceptional items and share of joint venture tax 2. Before exceptional items, amortisation 3. ROIC after tax, including JVs 1
Fyffes earnings history & 2016 targets 80 70 60 50 40 30 20 EBITDA - 18.9 25.7 26.9 29.6 40.0 40.0 48.2 56.1 63.0-69.0 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 3.95 EPS - cent 5.19 5.50 6.05 8.55 8.82 11.17 12.73 12.80-14.50 10 2.00 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 70 60 50 40 30 20 EBITA - 15.3 20.7 21.3 23.2 30.5 32.7 40.1 45.8 49.0-55.0 Growth rate 2008-2015 Absolute CAGR EBITDA 198% 16.9% EBITA 200% 17.0% EPS 222% 18.2% 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 target ranges updated 29 April 2016, including impact of Highline for 9 months post acquisition 2
2016 Acquisition activity Highline Produce Fits Fyffes strategic objective of adding a 4 th product to our portfolio Fits criteria of being an established, successful, integrated operator in a category with significant scale Fully integrated Eastern Canada based mushroom business Experienced management team. 55 year history 4 owned production facilities and 1 leased distribution centre Debt free valuation of CAD$145m ( 98m) Equivalent to 8.1 times pro forma annualised EBITDA of CAD$18m ( 12m) Immediately accretive Net debt post acquisition less than 2.5 times EBITDA. Will reduce to less than 2 times within 2 years 3
Mushrooms Total North American fresh mushroom market c.1,100m lbs (500k MT) Highline volumes c.58m lbs (26k MT) #4 position in North America #1 in Canada #1 globally in organic production Highline uses modern production systems Significant historical investment in facilities Focus on higher yields and good quality Mushrooms are a superfood great source of minerals, vitamins and antioxidants 4
2015 Acquisition activity Farming assets Purchased additional melon farming assets in Guatemala Comprises 2,500 hectares of leased land and 4 packaging stations Adds c.25% to existing capacity in melon category Investment of US$18.3m plus US$10m-US$12m incremental working capital Purchased banana farm in Costa Rica Investment of US$15m Have been operating farm since early 2014 under lease arrangement Accounts for c.3% of Fyffes banana volumes 5
Summary cash flow 2015 Operating cash flows Adjusted EBITDA 56.1 Exclude JV EBIT (1.7) Dividends from JV s 1.5 55.9 Recurring investment and other expenditure Maintenance Capex (9.6) Tax paid (4.3) Pension deficit payments incl MNOPF/MNRPF (1.9) Working capital / other (7.5) (23.3) Free cash flow before dividends 32.6 Dividends paid (7.4) Non recurring investment and other expenditure Acquisition of farming businesses (26.8) Farm purchase (2.7) Termination of Irish DB pension scheme (20.0) Non-recurring MNOPF/MNRPF payments (3.3) (52.8) Net cash outflow (27.6) Opening net debt (11.7) Strong cash generation in period. Operating cash flows of 55.9m, equivalent to 18.6 cent per share Significant investment expenditure in 2015 including 29.5m purchase of farming assets in banana and melon categories 20m paid to eliminate deficit in Irish DB pension scheme and all future liability. Accelerated pay down of new MNRPF liability Seasonal working capital compounded by acquisitions at end of year. Reduced by 6m repayment of supplier loans Closing net debt of 39.3m. Equivalent to 0.7 times Adjusted EBITDA Closing net debt (39.3) 6
Balance sheet 2015 2014 Intangible assets 39.9 24.5 Property, plant and equipment 128.6 101.6 Investment in joint ventures 36.3 40.1 Investment in Balmoral 0.1 0.1 Working capital / hedging 87.6 77.9 Current / deferred tax (8.4) (10.2) Provisions (3.5) (4.0) Pension deficit (net of DT) (25.7) (34.0) Net debt (39.3) (11.7) 215.6 184.2 Shareholders funds 213.9 182.7 Minority interests 1.7 1.6 215.6 184.2 Significant high quality asset base own c.5,000 hectares of land in Central America Also owns 4 large distribution centres 3 in UK and 1 in Florida Reduction in pension deficit due to closure of Irish DB pension scheme. Also in process of closing larger UK DB pension scheme to future accrual 31.2m increase in shareholders funds, includes 17.1m translation gain on Sterling and US Dollar denominated net assets, plus 27.4m retained profits before 7.4m dividend 7
Fyffes Market position Europe Market size (Cases) North America Market size (Cases/lbs) #1 300m #4 250m Fyffes 46m 10m (JV) #3 75m #3 80m Fyffes 7m 3m - - #1 50m Fyffes N/A 17m - - #4 1,100m lbs Fyffes N/A 58m 8
Focus on efficient capital allocation Acquisitions at all points in the supply chain and organic growth Increasing dividend Share buy-backs Key medium term focus is on growing the business through M&A Believe further consolidation is needed in industry 9
Shareholder return Dividends Buybacks Total 2007 5.3 1.7 7.0 2008 5.2 5.3 10.6 2009 5.7-5.7 2010 5.9 5.3 11.2 2011 5.9 12.7 18.6 2012 5.9-5.9 2013 6.2-6.2 2014 6.6 3.0 9.6 2015 7.3-7.3 Total 54.0 28.1 82.1 2015 dividend 2.745 cent (+15.0%) Compound annual growth in dividend 2008-2015 of 9.0% Dividend yield 1.7% based on 160 cent share price 10
Summary Strong 2015 result. EBITA up 14.2% to 45.8m Acquisition of Highline Produce Limited for CAD$145m ( 98m) Revised 2016 target EBITA range of 49m- 55m (including Highline for 9 months post acquisition) Focus on future development and shareholder value 11