Annual General Meeting29 April 2016
Fyffes plc
AGM 2016 1
Financial highlights | 2015
20142015 % Change
Total revenue €1,090.9m +12.1%€1,222.5m
EBITDA1 €48.2m +16.4%€56.1m
EBITA1 €40.1m +14.2%€45.8m
EPS2 11.17c +14.0%12.73c
Total dividend per share 2.387c +15.0%2.745c
ROIC3 16.6% +10.8%18.4%
1. Before exceptional items and share of joint venture tax2. Before exceptional items, amortisation3. ROIC after tax, including JVs
AGM 2016 22
EPS - € cent
15.320.7 21.3
23.2
30.5 32.7
45.8
49.0-55.0
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012 2013 2014 2015 2016
EBITA - €’M
40.1
Growth rate 2008 - 2015
Absolute CAGR
EBITDA 198% 16.9%
EBITA 200% 17.0%
EPS 222% 18.2%
18.9
25.7 26.929.6
40.0 40.0
56.1
63.0-69.0
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012 2013 2014 2015 2016
48.2
EBITDA - €’M
3.95
5.19 5.506.05
8.55 8.82
12.73
12.80-14.50
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2008 2009 2010 2011 2012 2013 2014 2015 2016
11.17
2016 target ranges updated 29 April 2016, including impact of Highline for 9 months post acquisition
Fyffes earnings history & 2016 targets
AGM 2016
2016 Acquisition activity | Highline Produce
• Fits Fyffes strategic objective of adding a 4th 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
AGM 2016
Mushrooms
4
• 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
AGM 2016
2015 Acquisition activity | Farming assets
5
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
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
AGM 2016
Summary cash flow | 2015
6
• 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
€’M €’M
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)
Closing net debt (39.3)
AGM 2016
Balance sheet
7
2015€’M
2014€’M
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
AGM 2016
Fyffes | Market position
8
Europe North AmericaMarket size
(Cases)Market size(Cases/lbs)
Fyffes 46m 10m (JV)
Fyffes 7m 3m
Fyffes N/A 17m
#1
#3
-
300m
75m
-
250m
80m
50m
#3
#1
#4
Fyffes N/A 58m
- - 1,100m lbs#4
AGM 2016
Focus on efficient capital allocation
Increasing dividend
Sharebuy-backs
Acquisitions at all points in the
supply chain and organic growth
9
• Key medium term focus is on growing the business through M&A• Believe further consolidation is needed in industry
AGM 2016
Shareholder return
10
Dividends€’M
Buybacks€’M
Total€’M
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
AGM 2016
Summary
11
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