Aryzta AG

Investor Presentation • Oct 5, 2016

Capital Markets Day

6 th October 2016

1

Forward Looking Statements

This document contains forward looking statements which reflect management's current views and estimates.

The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

Purpose

To provide great food to people with busy lifestyles

Mission

Deliver high quality memorable food experiences

• » Consumers
• » Food Professionals

• » Large scale Foodservice & Retail customers

• Why Bakery?

• Why Frozen?
• Why Consumer Obsession?
• Essential Components of Value Creation

Defining the Space - Evolving Bakery

Evolution in recent decades

Critical in par-baking – freezing unlocks growth potential in speciality bakery

Defining the Space - Evolving Consumer

Transformation in recent decades

	1960-2010 Golden Era for Big Retail & Big Food – FMCG Sector			Currently
	Consumer enjoying benefits of processed convenient food	Interest in Food Preparation	 	Resurgent interest in food preparation blurs the lines between the amateur and the professional Prepares food to reconnect, relax, socialise, be creative, be healthy
	Consumer disconnect from food and farming origins	Concerned about Health and Quality	 	Skeptical – concerned about health and quality issues Bad experiences of frozen food in retail – typically low quality
	Slowing food innovation accelerated consumer disconnect	Driven by Experiences and Trends	 	Motivated by experiences – engages with the unique, the bespoke Motivated by and actively engaged with trends – local, seasonal, environmentally friendly, organic, "free-from" diets
	Digital era coincides with recession and health awareness	Caring about Convenience		Demands convenience – instant gratification, one-click, time-poor, channel-irreverent
	Consumers take charge of conversation	Eager to Communicate on Wider Social Platforms		Activist – opinionated and communicative to ever-widening social circles

Defining the Space - Evolving Consumer

Picard in the Context of ARYZTA

Complementary supply chain with increased frozen capabilities and further upside from expanding international presence

• French consumer uniquely retained engagement with high quality food and understands power of frozen
• Consumers acknowledging a wide array of significant nutritional benefits of frozen food
• Increasingly modern discerning consumers outside France seek engagement with quality food frozen
• Picard is market leader in speciality frozen food in France
• ARYZTA brings international experience to Picard

• Picard expands Frozen Food capability of ARYZTA

• Potential for Further Upside through Complementary Operations and Aligned Business Culture

• Culturally aligned and innovation led with complementary supply chain
• Finger on the pulse of consumer through direct engagement
• Picard is at the forefront of premium frozen innovation
• Uniquely positioned to anticipate consumer trends

Economics

• Transaction timed to enhance long term value creation
• Best in class cash flow generation
• Economic and investment case stage gates to inform call option decision
• No put option or investment obligation
• Conscious of Investor concerns regarding transaction and timing

Best in class joint capabilities to target consumer on an international scale

Contemporary Discerning Consumer Striving for Quality Frozen Products

ARYZTA Key Pillars

ARYZTA Group at Glance

Global presence with 57 bakeries across 29 countries

Global Food & Speciality Bakery Market

ARYZTA is well-positioned in the fast-growing speciality bakery market

ARYZTA Positioning in the Global Speciality Bakery Market as of 2015

ARYZTA Food Group Speciality Bakery Market Share

Over 2008-2016 years ARYZTA increased its market share from 6% to 11%

2008 Market Share 2016 Market Share

Growth in ARYZTA market share from 6% in 2008 to 11% in 2016 primarily driven by acquisitions investments since 2010.

Source: ARYZTA, Euromonitor, Gira, Kantor, LEK, Nielson, Technomic.

And While We Won Market Share, Specialty Bakery Market Remains Highly Fragmented

ARYZTA has a unique position in a yet fragmented market…

ARYZTA Customer Centric USP

…with robust foundation focused on customer to sustain our leadership position

Focus on Customer

Customer at heart of what we do

Welcoming Aroma Of Baking

Frequent Bake Off "Little & Often" Means Freshness Guaranteed

• Increased consumer footfall
• Increased frequency of store visit
• Increased customer spend
• Reduced waste
• Reduced labour costs
• Reduced space
• Extensive range of different dough types
• No additives or preservatives clean label
• Aligned with modern consumer trends of clean label, variety and convenience
• Well-invested bakeries and kitchens with modern frozen technology
• Established relevance in frozen speciality foods
• Innovative consumer facing business
• Generates trend insights which drive the engagement with large supply chain customers
• Customers can leverage insights into changing consumer trends early to support market share growth
• Chef-led Innovation & Trends
• » Discerning consumers
• » Fine dining to casual dining to QSR
• » Specialist Retailer to convenience
• » Foodservice

Attributes relevant to Retail ISB, HORECA, QSR & Convenience

Frozen Capabilities Enabling to Address Consumer Trends

Business Evolution

ARYZTA / IAWS Share Price Performance

Source: Datastream and Bloomberg as of 29-Sep-2016

Future Capacity – Fully Unlocked

Contents

1 ARYZTA AG – Strategy & Overview	Owen Killian
2 Focus on ARYZTA North America
Our Business	John Yamin
Our Sustainable Growth Model	Ronan Minahan
Our Market	Tyson Yu
Our Customer Promise	Andrew Brimacombe Tracie Sheehan Scott Fitzgerald Kristina Dermody
Summary	John Yamin
3 ARYZTA AG – Financials	Patrick McEniff

To be the Best Bakery

© ARYZTA, October 2016 23

23

Our Focus

Our Business
Our Sustainable Growth Model
Our Market
Our Customer
Promise
Summary

• Develop and market Foods that redefine and enhance the Specialty Bakery Experience
• Significant Investment in building our Brands, including La Brea Bakery and Otis Spunkmeyer
• Deliver outstanding Quality and Value to Customers and Consumers alike
• Significant available Capacity created through our industry-leading Bakery Network
• Protect Customer Brands and our Brands through best-in-class Food and People Safety Programs, Procurement excellence and proprietary ARYZTA Integrated Management System ("AIMS")
• Provide transparency in Sourcing, Processes and Corporate Social Responsibility
• Deliver Underlying Revenue, EBITA and ROIC growth

Our Strategy

Our Business at a Glance

Note: (1) Global Food Safety Initiative; (2) ARYZTA Integrated Management System; (3) Enterprise Resource Planning; (4) Quick service restaurant

Our Operating Structure

Our Team

			Key Management			Business Units			North America Functions
Our Business
Our		John Yamin	Ronan Minahan	Kristina Dermody	Andrew Brimacombe	Joel Feldman	Tyson Yu	Tracie Sheehan	Mitch Rosen	Culbert Lu	Scott Fitzgerald
Sustainable Growth Model	Title	Chief Executive Officer	Chief Operating Officer	President Brand	President US Consumer Foods	President US Baking Solutions	President Canada	Chief Health, Quality & Sustainability Officer	Chief Accounting Officer	Chief Legal and Human Resources Officer	Senior Vice President Innovation
Our Market	Years with ARYZTA	14 Years	12 Years	4 Years	3 Years	9 Years	9 Years	4 Years	10 Years	3 Years	17 Years
	Years in Industry	37 Years	17 Years	22 Years	14 Years	17 Years	12 Years	32 Years	26 Years	16 Years	17 Years
Our Customer Promise	Prior Experience	• Starbucks • Marriot • ARAMARK	• Arthur Anderson • Tesco • GameStop	• Starbucks • Beautifull	• Accenture • Deloitte	• Clorox	• Lindsey Goldberg • Merrill Lynch	• Sara Lee • Kellogg • Zoecon	• Fresh Start Bakeries • Bell Industries	• GE Capital • Arden Realty • Allen	• Sweet Life • NBC • Prime Ticket
Summary		• Louise's Trattoria						• Westing house	• PwC	Matkins	Network

1 ARYZTA AG – Strategy & Overview	Owen Killian
2 Focus on ARYZTA North America
Our Business	John Yamin
Our Sustainable Growth Model	Ronan Minahan
Our Market	Tyson Yu
Our Customer Promise	Andrew Brimacombe Tracie Sheehan Scott Fitzgerald Kristina Dermody
Summary	John Yamin
3 ARYZTA AG – Financials	Patrick McEniff

Our Transformation Goals

Our Business Our Sustainable Growth Model Our Market Our Customer Promise Summary

• Create a Leadership Position in Specialty Bakery
• Enhance our Customer Relationships
• Leverage our full Portfolio
• Establish one Way of Working
• Eliminate Duplication
• Delayer our Management Structure
• Develop New Capacities and Capabilities
• Improve Revenue and Margin

Our Transformation

Our Repositioning with Capital Investments

Our Business	Cash Non	Integration into 4 Business Units aligned with our Customers •	2012 2013	40 38
Our Sustainable Growth Model	recurring Expenditure	• Reduced Network by 8 Bakeries, 50 Distribution Centers, 5 Offices • Function Consolidation and Headcount Reduction	2014 2015 2016	43 31 24
Our Market	Capital Investment	• Implemented Single-Instance Fully-Integrated ERP Platform • Expanded Artisan Bread and Snack Food Capacity • Routine Maintenance of 90+ Manufacturing Lines	2012 2013 2014 2015	55 50 112 175
Our Customer Promise	Acquisitions	• Flexible Manufacturing for Branded Food Growth	2016 2012 2013 2014	81 50 787
Summary		• Enhanced Customer and Geographic Relevance	2015 2016

Investment Initiatives (mEUR)

Our Challenges and Solutions

Our Financial Performance

Underlying Revenue Growth

Financial Performance

Our Customer		FY12	FY13	FY14	FY15	FY16
Promise	Revenue (mEUR)	1,372	1,460	1,587	1,942	1,908
	Underlying Revenue Growth	7.0%	1.6%	1.3%	(6.2%)	(3.1%)
	Underlying Revenue Growth (excl. Contract Renewals)	-	-	-	-	2.2%
	EBITA (mEUR)	176	190	230	275	243
Summary	EBITA Margin	12.8%	13.0%	14.5%	14.2%	12.8%
	ROIC	10.5%	12.2%	11.3%	10.6%	9.8%

Our Sustainable Growth Model

Our Business Our Sustainable Growth Model Our Market Our Customer Promise Summary Established Brand, Customer and Category Leadership Focused on Efficiencies and Cost Optimization • Creating our Leadership Position in Specialty Bakery • Energizing our four Leading Specialty Bakery Brands • Enhancing our Customer Relationships using our Customer-Centric Strategy & Dedicated Customer Teams • Establishing the Specialty Bakery Industry's Best Innovation Team • Expanding our Capabilities to service all Baked Food opportunities, releasing €500M of Capacity • Developing our 9,500 People to be the Best Bakers in the Industry • Building the Most Efficient & Flexible Bakery Network, becoming the Manufacturing Leader of our Core Categories • Harmonizing our Bakery Policies, Processes and Programs through our Proprietary AIMS • Creating the Industry-Leading Procurement Organization • Crafting the best-in-class Safety Programs for Our People & Food • Implementing a fully-Integrated Single-Instance ERP Platform • Forming a dynamic Shared Services Organization

Contents

1 ARYZTA AG – Strategy & Overview	Owen Killian
2 Focus on ARYZTA North America
Our Business	John Yamin
Our Sustainable Growth Model	Ronan Minahan
Our Market	Tyson Yu
Our Customer Promise	Andrew Brimacombe Tracie Sheehan Scott Fitzgerald Kristina Dermody
Summary	John Yamin
3 ARYZTA AG – Financials	Patrick McEniff

ARYZTA Is the Leader in the SpecialtyBakery Market

Sources: Mintel; Technomic; Nielsen; Euromonitor; LEK

Note: (1) Total Bakery excludes frozen, foodservice, and restaurant pizza; (2) Specialty Bakery includes Artisan Breads, cookies, muffins, snack cakes, flatbreads, donuts, pastries, Danishes, English muffins, bagels, cakes, traditional non-pan breads, and take-and-bake pizza

Specialty Bakery Is an Attractive Market Segment

Our Business
Our Sustainable Growth Model
Our Market
Our Customer Promise
Summary

• Attractive Market Dynamics supported by strong Fundamentals
• Evolving Consumers craving Brands and Foods they trust
• Evolving Customers demanding Innovative Solutions
• Increasingly rigorous Operating Environment presenting Challenges and Opportunities

Rising Incomes Driving Increased Consumer Spending on Food

Source: Euromonitor

ARYZTA Will Outperform Both Bakery and Specialty Bakery

Sources: Mintel; Technomic; Nielsen; Euromonitor; LEK

Note: (1) Total Bakery excludes frozen, foodservice, and restaurant pizza; (2) Specialty Bakery includes Artisan Breads, cookies, muffins, snack cakes, flatbreads, donuts, pastries, Danishes, English muffins, bagels, cakes, traditional non-pan breads, and take-and-bake pizza

Evolving Consumer Demands Creating Strategic Opportunities

Retailers Repositioning to Adapt to Evolving Consumers

Foodservice Industry Is Innovating

Partnering with Our Customers to Meet Evolving Consumer Demands

100% of Top 8 FS Distributors

Channel Leaders Quick-Service and Casual Restaurants Retail / Grocery Foodservice Non-Traditional Our Business Our Sustainable Growth Model Our Market Our Customer Promise Summary 80% of Top 25 Retailers 88% of Top 8 QSRs 2016 Revenue 68% 32% 0% 25% 50% 75% 100% Top 20 Other 50% of Top 8 Casual Diners 100% of Top 8 FS¹ Management

Sources: QSR Magazine; Internal ARYZTA data Note: (1) Foodservice

Operating Environment Presenting Challenges and Opportunities

• Increasing demand but constrained supply • Increasing wages • Labor laws • Shortage of skilled labor • Rising healthcare costs Food Safety Health & Safety Labor Issues Specialized Commodities • Occupational Safety and Health Administration ("OHSA") increasing requirements and visibility • Food Safety Modernization Act ("FSMA") • Safe Food for Canadians Act ("SFCA") • Global Food Safety Initiative Accreditation ("GFSI") • Customer audit standards • Traceability protocols Our Business Our Sustainable Growth Model Our Market Our Customer Promise Summary Stringent demands forcing food manufacturers to adapt their business models and infrastructure

ARYZTA Will Increase Its Specialty Bakery Market Share

Contents

1 ARYZTA AG – Strategy & Overview	Owen Killian
2 Focus on ARYZTA North America
Our Business	John Yamin
Our Sustainable Growth Model	Ronan Minahan
Our Market	Tyson Yu
Our Customer Promise	Andrew Brimacombe Tracie Sheehan Scott Fitzgerald Kristina Dermody
Summary	John Yamin
3 ARYZTA AG – Financials	Patrick McEniff

ARYZTA is dedicated to helping your business achieve sustainable success through customized, scalable and efficient bakery and snacking portfolio solutions. Our commitment to building your trust as a valued partner is as strong as our Passion for Good Food.

Our Customer Promise

Customer First

Industry-Leading Bakery Network & Assured Supply

Industry-Leading Bakery Network & Assured Supply

Predictable Pricing and Strategic Supply Base

Our Business Our Sustainable Growth Model Our Market Our Customer Promise Summary Predictable Pricing • Leading Commodity Hedging Policy with long-term horizons • 100% Procurement Spend Management facilitated by SAP / Ariba Procurement platform, commodity strategies and dedicated experts • Volume Sourcing utilizing North American scale: 2% of cocoa and 1% of wheat and sugar purchases • Origin Sourcing for specialized and unique Ingredients • Regularly-published Global Commodity Outlook with transparency in commodity pricing Strategic Supply Base • Partnered with industry-leading Ingredient and Packaging Suppliers with mutual long-term commitments • All Suppliers are regulatory-compliant and accountable to ARYZTA's Code of Conduct • Robust Supplier Relationship Management program • Fully engaged in our Innovation process as Culinary Partners • Contingent supply for all Ingredients and Packaging

Rigorous Food & People Safety Programs and Quality Leadership

Elevating Sustainability

	Transparent Food Solutions
Our Business	• Non-GMO and Organic Certification Programs • Eliminating Partially Hydrogenated Oils, Reduced High Fructose Corn Syrup, Artificial Colors and Flavors
	Sourcing for a Sustainable Future
Our Sustainable Growth Model	• 1 Million Certified Cage Free Eggs • Purchasing 100% Supply of Roundtable on Sustainable Palm Oil • Detailed Ingredient Sustainability Programs
	Protecting Our Planet
Our Market	Achieved Energy Star Challenge • • Award Winning Sustainability Programs • Achieved Zero Waste-to-Landfill in Bakeries
	Enhancing Our Communities
Our Customer Promise	Providing 4 Million Meals to Hungry Children • • Supporting Over 100 Charitable Activities • Donating Food and Time to Feeding America
	The Right Workforce to Drive Future Growth
Summary	• Award Winning People Safety Programs Assuring Compliance with ARYZTA's Code of Conduct • Detailed and Comprehensive Benefits and Rewards • Programs for All Employees

Elevating Sustainability

Summary

BREAK | BAKERY TOUR

Pioneering Innovation

Pioneering Innovation – Stage-gate

Pioneering Innovation – Platforms

		Breads	Cookies	Muffins	Baked Snacks
Our Business		Converted all • Artisan Breads to non-GMO	Extended Clean • Label Offerings • Expanded	Expanded • Proprietary Ingredients	Removed High • Fructose Corn Syrup, Artificial
Our Sustainable	Ingredients		Proprietary Ingredients		Colors & Flavors and PHOs
Growth Model
Our Market	Foods	Organic Artisan • Heritage Grain • Ethnic Range • Gluten Free • • Toaster Bread • Pretzel Bread	Enhanced • Freezer-to-Oven Capabilities Premium Filled • Cookies • Super Cookie • Brookie	Filled and Dual • Batter Muffins Angel Food • Muffin • Pre-deposited Muffin • Bundt Cakes	New Retail • Range of Cookies, Muffins and Snack Cakes • Holiday Offerings
Our Customer Promise	Packaging			• Retail and Club channel support through Shelf Life extensions	• Retail and Club channel support through Shelf Life extensions
Summary

Foremost Baking Knowledge & Expertise

Our Sustainable Growth Model

Our Market

Our Customer Promise

Summary

Chef Council & Culinary Capability

• Global Network of over 80 Chefs
• Network of Development Partners from Suppliers, Culinary Institutes and Universities
• 15 Test Kitchens in the Americas and 30 globally
• Culinary Centers of Excellence in LA, Chicago and Paris

Baking & Snacking Insights and Expertise

• Core Focus on Specialty Bakery
• Industry-leading Category Management team with unique insights, knowledge and expertise in the Baking Industry

• Quarterly Consumer Insight publication

• Over 50 sourcing professionals globally, 25 in the Americas

• Deep Ingredient Networks to find differentiating items
• Assured and safe Ingredient Supply through GFSI and policy compliance
• Strategic Supplier Partnerships
• Quarterly publication

Solution Focused Exploration

Accelerated Commercialization

• Rapid and Repeatable approach to exploring new concepts
• Partnership approach to development with Customer-Dedicated Chefs

• Faster Execution of samples and Customer presentations of Foods

• Dedicated team of Project Management experts

• Best-in-class Commercialization process delivering developments on-time and with a higher success rate
• Integrated process and reporting

Winning Specialty Bakery Portfolio

Tailored Customer Solutions

PIONEERING INNOVATION

• Over 200+ New Foods launched every year with a 70% launch rate driving over €150M of incremental Revenue
• Guiding trends through our Culinary Network
• Experimenting with new Ingredients and revolutionary Baking Techniques
• Delivering the most successful and widest range of New Foods in Specialty Bakery

Consumer needs

FOREMOST BAKING KNOWLEDGE & EXPERTISE

• Uniquely dedicated to Specialty Bakery
• Best Development Team of Chefs, Culinary Professionals and Culinary Partners
• Robust Commercialization Process delivering best success rate
• Largest and most flexible Manufacturing Network
• Experienced bakery team to commercialize New Foods
• Simple, high-quality, traceable Ingredients

Our Business

Leading Brands

© ARYZTA, October 2016

of adults snack at least once daily while half of adults snack two to three times per day

of consumers indicate they are snacking on healthier foods this year compared to last year and are more likely to be serving healthier snacks to their children

of people who snack were not interested in limiting their intake of sweets

Note: All commodity volume

© ARYZTA, October 2016

To always make delicious food with integrity simple ingredients and a patient process.

© ARYZTA, October 2016

The artisan bread movement was born when La Brea Bakery opened its doors on La Brea Avenue in Los Angeles, CA

La Brea Bakery develops a process that replicates the traditional way bread should be made – original starter, patience and time to let the flavors develop, and each loaf hand-touched

Artisan bread started becoming available nationally when La Brea Bakery started developing the par-baked process

La Brea Bakery celebrates 25 years with a brand refresh symbolizing its commitment to continue leading the artisan bread industry

La Brea Bakery is the number one Artisan Bread company

Highest Quality, Simple Ingredients

No Preservatives, Additives or Dough Conditioners

Kosher Pareve and Certified Organic Bakeries

Transparency of Sourcing and Process

Snack Food & Wholesale Bakery, named La Brea Bakery its 2016 Bakery of the Year - June 2016

Snack Food & Wholesale Bakery, named La Brea Bakery's Gluten Free Sliced Sandwich Bread one of two Best New Snack & Bakery Products of 2015 - January 2016

Dessert Professional Magazine, named Matthew McDonald one of the Top Ten Bread Bakers of 2016 - March 2016

Hermes Creative Awards, La Brea Bakery "Thanksgiving Heroes" wins Platinum - April 2016

2016 PR Daily Video Awards, named La Brea Bakery "Thanksgiving Heroes" Grand Prize Winner - April 2016

Note: All commodity volume

"The bread that you buy in the supermarket, in that package, the Wonder Bread, is very different than what bread was for most of history."

– Michael Pollan, Cooked

"Before the advent of industrial agriculture, Americans enjoyed a wide range of regional flours milled from equally diverse wheats, which in turn could be used to make breads that were astonishingly flavorful and nutritious. For nearly a century, however, America has grown wheat tailored to an industrial system …"

We are proud to be the first national farm to table bread in North America. Artisan Breads made from single origin heritage grains. La Brea Bakery Reserve embraces the beauty and dignity of farming and the true taste of real food.

™

OUR BELIEFS IN PRACTICE

From the farm to your table, La Brea Bakery Reserve strives to bring well -crafted, nutritious and flavorful breads:

• Single Origin
• Heritage Grains
• Our Starter
• Patient Process
• Responsible Farming

LA BREA BAKERY RESERVE: Vintage 2016

Contents

1 ARYZTA AG – Strategy & Overview	Owen Killian
2 Focus on ARYZTA North America
Our Business	John Yamin
Our Sustainable Growth Model	Ronan Minahan
Our Market	Tyson Yu
Our Customer Promise	Andrew Brimacombe Tracie Sheehan Scott Fitzgerald Kristina Dermody
Summary	John Yamin
3 ARYZTA AG – Financials	Patrick McEniff

© ARYZTA, October 2016 90

Summary

Contents

ARYZTA Europe Year ended 31 July 2016

ARYZTA Europe 2016 Financial Highlights

Revenue		6.1%
Underlying revenue		4.0%
Acquisitions, net		1.9%
Currency		0.2%
EBITA		1.8%
EBITA margin		(50) bps

ARYZTA Europe Revenue Analysis

ARYZTA Europe - Germany

	– Completed new €150m bakery investment with 5 lines at existing campus
New Bakery	– Closed older, less efficient facility employing 500 people
Investment Will Drive Future	– Transferred almost €80m revenue into existing facilities incl. new bakery
Efficiency	– Significant disruption from commissioning of 225 SKU into existing capacity
	– New bakery still has capacity for further €80-100m revenue growth
Though NPD was
Affected,	– NPD was impacted in H2 FY 16 from this consolidation
Recovery is Expected in Q2 FY 2017	– NPD recovery expected to drive revenue growth starting in Q2 FY17
	– Discounters are still growth driver for in-store bake off across region
Channels	– Some discounters partially insourcing to partially meet own demand
	– Efficient manufacturing is key to partnering with big retailers & discounters
New Product Developments	– Successful start of organic consumer packed specialty bread for retail

ARYZTA Europe - CEE

• Acquisition of Fornetti performing well
• Hungary based with franchisee model across CEE

• Synergy with ARYZTA operations in CEE

• Developing business with modern retail and discounters ISB

• Leveraging local consumer insights
• Established business aligned with ARYZTA values and strategy

ARYZTA Europe - France

Well Established Innovation Led Business

• Well established Coup de pates business in France
• Innovation led revenue generation model
• 30% of revenue Paris weighted

Impacted by Recent Events However Recovering

• Adversely impacted by series of terrorist attacks
• Tourists numbers visiting Paris negatively impacted
• Recovery period expected to shorten as consumers adjust to new security risk norm

ARYZTA Europe - Switzerland

Well Flagged Contract
Renewals

However Opens New Opportunities

• Well flagged contract renewal volume loss of frozen bread commences in FY17
• Renewal losses triggered by significant insourcing investment by customer in fresh bread manufacturing and logistics
• Originally a Joint Venture investment with this customer in dedicated assets from 2001
• €50m Revenue expected to transfer in FY17 and €30m in FY18
• ARYZTA remains a key supplier of higher value viennoiserie
• Opens new opportunity and challenge to sell this capacity to new customers as ARYZTA will own 100% of the Swiss bakery assets

ARYZTA Europe - UK & Ireland

Economic
Recovery
Update on Acquisitions
FX Volatility Triggered by
Brexit Require
Price Increases

• Economic recovery assisting strong performance in both regions
• Consumers spending again
• Acquisition of La Rousse, focused on premium restaurant sector, performing well
• Brexit and FX volatility a key issue
• Require price increases to recover FX impact
• Current supply approximately €50m from Ireland
• Supply €50m into UK sourced from third party continental suppliers
• Limited frozen speciality manufacturing capacity in UK supportive of pricing strategy

ARYZTA Group - Continuing Operations FY 2009 – FY 2016

CAGR FY 2009 – FY2016

EBITA Margin Movements Year ended 31 July 2016

Total Group EBITA	484,867	12.5%	513,965	13.5%	(100)bps
Administration expenses	(178,217)	(4.6)%	(164,424)	(4.3)%	(30)bps
Selling expenses	(183,616)	(4.7)%	(162,101)	(4.2)%	(50)bps
Total Group Gross profit	846,700	21.8%	840,490	22.0%	(20)bps
Distribution expenses	(410,427)	(10.6)%	(399,952)	(10.5)%	(10)bps
Cost of sales	(2,621,744)	(67.6)%	(2,579,789)	(67.5)%	(10)bps
Revenue	3,878,871		3,820,231
in EUR '000	July 2016	Margin	July 2015	Margin	bps

• Half of the Group margin decline relates to increased investment in brand marketing
• Remaining margin declines primarily relate to negative operating leverage from contract volume declines
• Nominal value increases in selling and administration expenses also driven by acquired businesses

Return on Invested Capital Year ended 31 July 2016

in EUR million	Europe	North America	Rest of World	Total Group
2016
Group share net assets	1,903	2,488	198	4,589
EBITA	215	243	26	484
ROIC1	11.3%	9.8%	13.0%	10.5%
2015
Group share net assets	1,963	2,602	204	4,769
EBITA	220	275	27	522
ROIC1	11.2%	10.6%	13.2%	10.9%
Analysis of movement	Europe	North America	Rest of World	Total Group
Underlying profit impact	(30) bps	(140) bps	70 bps	(80) bps
Change in net assets	20 bps	40 bps	50 bps	30 bps
FX	20 bps	20 bps	(140) bps	10 bps
	10 bps	(80) bps	(20) bps	(40) bps

1 ROIC is calculated on a consistent basis year over year using a pro-forma trailing twelve months segmental EBITA ('TTM EBITA') reflecting the full twelve month contribution from acquisitions and full twelve month deductions from disposals, divided by the respective Segmental Net Assets as of the end of each respective period. See glossary on slide 55 for further definitions of financial terms and references used.

2 The Group WACC on a pre-tax basis is currently 8.0% (2015: 7.4%).

Customer Contract Renewals Impact

In EUR million	2016	2017	2018
Europe	–	(50)	(30)
North America	(90)	(40)	–
Total contract renewals revenue impact	(90)	(90)	(30)

– Long-term contract renewals refers to three customers whose contract renewals coincided. Two of these contracts originated as joint venture or associate investments.

ARYZTA Group – Quarterly Underlying Revenue

	Q1 2016	Q2 2016	Q3 2016	Q4 2016	FY 2016
Europe
Volume (%)	2.1%	2.7%	3.3%	3.1%	2.8%
Price/Mix	3.4%	1.1%	0.6%	(0.1)%	1.2%
Underlying growth %	5.5%	3.8%	3.9%	3.0%	4.0%
North America
Volume (%)	(9.4)%	(6.5)%	(4.2)%	(1.2)%	(5.3)%
Price/Mix	3.8%	4.1%	1.9%	(0.9)%	2.2%
Underlying growth %	(5.6)%	(2.4)%	(2.3)%	(2.1)%	(3.1)%
Underlying growth excluding contract renewals %	(1.2)%	2.6%	4.7%	2.9%	2.2%
Rest of World
Volume (%)	(3.7)%	(0.8)%	3.7%	0.1%	(0.2)%
Price/Mix	5.9%	6.5%	3.8%	9.3%	6.4%
Underlying growth %	2.2%	5.7%	7.5%	9.4%	6.2%
Total Group
Volume (%)	(4.0)%	(2.1)%	(0.3)%	0.8%	(1.5)%
Price/Mix	3.6%	2.9%	1.2%	0.0%	2.0%
Underlying growth %	(0.4)%	0.8%	0.9%	0.8%	0.5%
Underlying growth excluding contract renewals %	2.4%	3.4%	4.4%	3.4%	3.4%

FY 2017 Financial Metrics

Current Estimates¹

Underlying income statement
Underlying revenue growth	1 – 2%
EBITA margin	11.5% – 12.5%
Joint Ventures (70% H1 weighted)	€18 – 25m
Finance costs, including hybrid financing	€80 – 105m
Effective tax rate	16% – 19%

Reconciliation of underlying net profit to IFRS reported net profit

Amortisation	€165 – 175m
Private Placement early redemption and associated costs	€180m
Cash and non-cash non-recurring expenses	€0 – €25m

Cash generation

Amortisation	€165 – 175m
Depreciation	€130 – 145m
Maintenance and investment capex	€135 – 155m
Non-recurring cash outflow	€30 – 50m
Free cash generation, excluding early redemption costs	€225 – 275m

Net debt

15% underlying EPS dividend pay-out	€47m
Private Placement early redemption and associated costs	€180m

1 Metrics as provided in September 2016, not yet reflecting impacts of foreign exchange movements since that time.

FY17 Actions for Success

			Optimise new German bakery capacity
	Europe		renewal losses
Positive
Operating Leverage			Positive innovation-led revenue development
from
	North America		Sustained conversion of NPD pipeline into revenue
			ARYZTA Brand investment and rollout to continue
Cost Efficiency			Zero cost based budgeting

Expand Swiss customer base to absorb spare capacity following contract

• Successful pricing recovery strategies to deal with FX volatility
• Positive innovation-led revenue development
• Sustained conversion of NPD pipeline into revenue
• ARYZTA Brand investment and rollout to continue

• Successful recovery of inflationary pressures especially labour

• Revenue: + 25%

• EBITDA: + 40%
• EBITDA Margin: 17%
• ROIC: 15%
• To unlock this capacity
• ARYZTA sustaining predictable free cash generation in the range of c€225-275m
• To grow underlying revenue from 3.4% in 2016 to 5.4% post contract renewals
• To fully unlock the recently invested growth capacity in Germany
• To resell the revenue lost from contract renewals in Switzerland and North America
• To successfully generate new incremental branded sales with an annual run rate of €150- 200m
• To continue to grow the now stabilised business of Food Solutions in Europe and RoW
• To improve ROIC to by c80-100bp per annum to 14 %-15%