Aryzta AG

Investor Presentation • Jun 7, 2022

8 June 2022 Capital Markets Day

Forward Looking Statement

This document contains forward looking statements which reflect the Board of Directors' 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, the effects of a pandemic or epidemic or a natural disaster, or war and regulatory developments.

You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. The Company expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements other than as required by applicable law.

Agenda

Urs Jordi

• The market dynamics and ARYZTA's position
• ARYZTA's ambitions & goals 2023f 2025f
• ARYZTA's strategy 2023f 2025f

Martin Huber

• Growth Drivers and Capital Allocation
• Margin Improvement
• Capital Efficiency
• Cash Flow and Capital Structure

Capital Markets Day Market dynamics and ARYZTA's position

Bake-off market: Core Focus for ARYZTA

Total bakery

MARKET DYNAMICS AND ARYZTA'S POSITION

Bake-off to become largest bakery segment

• Bake-off is expected to grow 2-3% annually
• Bake-off is expected to increase share to c. 28%
• Total bakery market growth c. 1% annually

Bake-off market growth MARKET DYNAMICS AND ARYZTA'S POSITION

Bake off growth driven by consumer trends:

• Freshness
• Availability
• Superior quality
• Innovation

Result:

• Bake-off drives footfall in retail and food service
• Bake off penetration continues to grow in grocery and food service

Manufacturing and commercial footprint MARKET DYNAMICS AND ARYZTA'S POSITION

STRATEGY 2023f – 2025f

ARYZTA exploiting its full growth potential

€18bn1 addressable market MARKET DYNAMICS AND ARYZTA'S POSITION

Excellent growth opportunities across all categories

Product category growth driven by consumer trends:

• New taste & look: mainly savoury and pastry
• Artisan: mainly bread/rolls
• Health: mainly bread and roll
• Ethical, Vegetarian & Vegan: mainly savoury

Excellent growth opportunities across all channels

Market growth by channel 2023f–2025f (CAGR)

• QSR: driven by excellent product and service offering & staff availability
• Retail: Mainly driven by expanded bake-off offerings
• Food service; driven by bake off expansion and new post-covid momentum

Bake-off growing strongly across ARYZTA's markets

Fragmented Competitor Landscape

ARYZTA:

• Well-placed manufacturing & commercial footprint
• Exclusive focus on bake-off
• Offers all core categories across all channels

Capital Markets Day Ambitions and Goals

Ambition & Goals

Our value proposition

To deliver the gold standard for bake-off

Our ambition

To become the best partner for bake-off solutions across all our channels and markets

Significant inflation challenges remain AMBITION AND GOALS

• War and supply chain disruptions driving inflation across all inputs
• Little respite expected in the near term
• Price increases more frequent
• Food consumption highly defensive consumer spending activity
• Carbohydrates competitive value advantage versus proteins and fats
• Packaged bakery losing share to bake-off consumers value freshness, availability and innovation
• Bake-off market continued to grow in previous economic downturns
• ARYZTA mainly focused on economies with high consumer spending and robust social support systems

Mid-term targets FY 2023f - FY 2025f AMBITION AND GOALS

Organic growth (CAGR) 4.5%–5.5% pricing FY221) (constant	EBITDA Margin ≥14.5%	ROIC ≥11.0%
Revenue (EUR) >2bn (constant currency and pricing FY22)	CAPEX as % of revenue 3.5%–4.0%	Total net debt leverage (incl. hybrids) c.3x (driven by operational results)

1 Excludes compensation of inflation by pricing

Capital Markets Day Strategy 2023f – 2025f

Four key value drivers for gold standard

STRATEGY 2023f – 2025f

Our growth strategy is driven by baseline growth and premiumization/ innovation

STRATEGY 2023f – 2025f

ARYZTA's base line growth expected to be in line with market

Focused on strategic partnerships

• Increase customer penetration with customized products
• Gain new customers in core channels
• Capacity expansion for Buns, pastry and savoury

Underlying growth driver:

• Consumer trends driving bake-off growth:
• Consumer wants freshness and availability all day long
• Bake-off offers superior quality and innovation
• On-the-go consumption supports growth

Excellence in Customer Development

Excellence in Channel Solutions

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

PREMIUMIZATION

Baguette: moist, crispier taste, stronger flavor with longer dough rest, gentle kneading

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

PREMIUMIZATION

Buns: buttery creamy flavor, shiny dome look, crispy bite, stays hot longer with new recipe and process

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

INNOVATION

White rolls:

new artisanal look and intense flavor, adding raisins and seeds with a gentle process in stone oven

Excellence in Innovation/ Category know -how

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

INNOVATION

Baguette: New artisanal look and taste with stone -oven process, longer matured dough and hand -crafted finish

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

INNOVATION

New healthy bread loaves concept with active sourdough starter and fibre enhancing digestion and offering a slightly acid taste experience

Market growth bread and rolls

INNOVATION

New loaves/rolls with hand -crafted look, roasted aroma, crispy crust and long freshness from longer matured dough

Market growth: c. 2.1% ARYZTA growth: c. 5.4% Baseline growth: c. 3% Premiumization & innovation: c. 2.4% Market growth bread and rolls

INNOVATION

New healthy bread concept adding protein, fibre and reducing carbohydrate level with a proprietary process

ARYZTA's premiumization / innovation in savoury STRATEGY 2023f – 2025f

Market growth savoury & other

INNOVATION

New plant -based snacking concepts (vegetarian, vegan)

ARYZTA's premiumization / innovation in savoury STRATEGY 2023f – 2025f

Market growth savoury & other

INNOVATION

New on -the -go snacking concepts with new fillings and shapes

ARYZTA's premiumization / innovation in savoury STRATEGY 2023f – 2025f

Market growth savoury & other

INNOVATION

New on -the -go snacking concepts with new fillings and shapes

ARYZTA's premiumization / innovation in morning goods STRATEGY 2023f – 2025f

INNOVATION

New look and taste pastries with exciting new fillings and flavors

Margin Improvements through quality, efficiency and cost management STRATEGY 2023f – 2025f

• Continuous Improvement Programs
• Simplifications measures
• Leveraging Procurement
• Streamlining of End to End (E2E) Processes

Summary: ARYZTA is creating value by offering the gold standard in bake-off

From	To
A value destructive acquisition driven model	A value creating organic growth model
An ordinary bakery product supplier	A provider of the gold standard for bake off solutions
A mainly commodity product supplier	A category captain offering innovative, differentiated products
A "global" bakery	A multi-local European/APAC bake off partner
A multi channel/category supplier	A focused channel and category solution provider
A distracted and inefficient organization	A highly dedicated and well structured and focused organization

Capital Markets Day Financials 2023f – 2025f

Detailed portfolio evaluation supported by comprehensive strategic process

• Comprehensive bottom-up / topdown process
• Standardized & data driven approach
• Market, channel, category assessment of "Where to Play" and "Ability to Win"
• Basis for capital and resource allocation

In €m

Market momentum and premiumization driving 4.5%–5.5% annual organic growth from 2023f to 2025f

39

Disciplined capital investment allocation supporting growth and protecting baseline business

Growth Initiatives

CAPEX focused on technology / manufacturing capabilities

Baseline Growth

• CAPEX & usage of installed capacity (+5% to 8%)
• Protecting existing base volume
• Supporting line and labor efficiency
• Ensuring safety, health and environment requirements

Premiumization and disciplined costs management improving Underlying EBITDA to at least 14.5% of revenue

Key levers of disciplined costs management FINANCIALS 2023f – 2025f

ARYZTA Performance control system enabling continuous improvement throughout operations

Performance Control System (PCS) Achievements & Ambition • Bakery performance excellence program • Started in 2020, implemented in 20 of 26 bakeries • Addressing >80% of conversion costs1 • 8 bakeries at advanced PCS level • Empowerment of shop floor operators Key Achievements advanced PCS bakeries: • Conversion costs1.) as % of revenues: c. 250bps improvement vs. other Euro bakeries • Line efficiencies: c. 400bps improvement vs. other Euro bakeries Target for 2023f–25f: • Increase line efficiency by 5 to 10% • Reduce waste levels by around 50% • Improving labor efficiency by around 20% 2-3% cost2 efficiencies year-on-year

Simplification of our product and recipe portfolio through Project SIMPLEX

• Comprehensive program to achieve:
  • Bundle and drive scale
  • Manage Supply chain risk
  • Reduce SKU and vendor complexity
  • Simplify recipe management
• Focus across the value chain
• Leverage of R&D and new product development
• Supporting cost and capital efficiencies

SIMPLEX Achievements & Ambition

Key Achievements:

• Germany: packaging material harmonization 7% cost optimization
• Switzerland: Simplification of dough recipes & bakery ingredients 12% of cost optimization

Target for 2023f-25f:

• All markets covered by end of 2023

€10–14m cost optimization

Centralized Global Procurement Achievements & Ambition

• Increase overall Group procurement coverage
• Improving governance around Procure-To-Pay processes
• Establish efficient catalogue and tail-spend management
• Disciplined make or buy process to leverage own production
• Strengthen risk management
• Strengthen talent development

Key Achievements in FY22:

• Over 14% of cost optimizations and reductions on our total spend through
  • Procurement negotiation
  • Risk management

Target for 2023f–25f:

€16–22m cost reduction

• Align 5 Key End-To-End processes
• Harmonize data standards and governance
• Achieve transactional process efficiency
• Increase leverage of main ERP
• Reduce IT application landscape complexity
• Digitalize vendor and customer interaction

E2E Standardization Achievements & Ambition

Key Milestones:

• SAP/Hana implementation Switzerland (increasing Group revenue-coverage >60%)
• Data-Lake leveraging reporting & analytics
• Growth of B2B e-commerce offering

Target for 2023f–25f:

• Drive fixed costs leverage

Keep fixed costs growth between 30–40% of Organic Growth

Fixed costs leverage as key driver of margin progression

ROIC acceleration through margin progression and capital efficiency

Drivers of capital efficiency:

• Margin progression
• Disciplined CAPEX investment
• Integrated Business Planning
• Supplier management
• Analytics and Incentives

48

Capital structure significantly improving

Addressing the capital structure 2023f-2025f

• Repayment of Euro hybrid principal on a phased basis
• Financing through cash generation by business performance
• Expected net interest benefit of c.€15-17m p.a. once the Euro hybrid is repaid
• Total net debt to EBITDA (including hybrids) of c.3x by the end of 2025

Summary

Key levers of Value Creation in the period 2023f–2025f:

• Annual revenue growth of 4.5% 5.5% at constant pricing
• EBITDA as a percentage of revenue to reach at least 14.5% by 2025
• Prudent CAPEX investment of 3.5% 4.0% of revenues
• Acceleration of ROIC to at least 11.0% by 2025
• Improving capital structure and interest costs
• Paydown of Euro Hybrid

Capital Markets Day Appendix

ROIC – comparison of new definition to previously reported

	Measures of profitability (numerator)	Measures of capital efficiency (denominator)	Reconciliation of old to new ROIC definitions - July FY21	€m
New	Pro-forma trailing twelve month Average of the beginning and segmental IFRS operating profit, ending Segmental Net Assets. before gains/losses on disposal of Segmental net assets exclude businesses, and after underlying financial assets at fair value, all tax; reflecting the full twelve bank debt, cash and cash month contribution from equivalents and tax balances. acquisitions and full twelve month deductions from disposals ('TTM For the purposes of calculating NOPAT'). the average Segmental Net Assets, the net assets at the beginning of the twelve month	Segmental net assets (old definition per FY21 annual report) Deferred tax on intangibles Segmental net assets (new definition as of July 2021) Effect of average of opening and closing balance sheet1 Segmental net assets (new definition) 1Opening segmental net assets from continuing operations FY20 (new definition) was €1,421.9m	1,312.6 16.4 1,329.0 46.4 1,375.5
		period will be adjusted to exclude the impact of disposal of businesses and include the impact of acquisition of businesses.	TTM EBITA (old definition per FY21 annual report) Non-ERP Amortisation (Loss)/gain on fixed asset disp and impairment Restructuring related costs COVID 19 related costs	63.5 (17.7) (4.3) (52.8) (1.3)
Old	Pro-forma trailing twelve month segmental Underlying EBITA ('TTM EBITA') reflecting the full twelve month contribution from acquisitions and full twelve month deductions from disposals. Underlying EBITA is presented as earnings before interest, taxation and non-ERP related intangible amortisation; before impairment, disposal, restructuring and COVID 19 related costs.	Segmental Net Assets excludes joint ventures, financial assets at fair value, all bank debt, cash and cash equivalents and tax balances, with the exception of deferred tax liabilities associated with acquired goodwill and intangible assets, as those deferred tax liabilities represent a notional non-cash tax impact directly linked to segmental goodwill and intangible assets recorded as part of a business combination, rather than an actual cash tax obligation.	IFRS operating profit Underlying Tax charge TTM NOPAT (new definition) ROI OLD ROI NEW	(12.6) (26.7) (39.3) 4.8% (2.9%)

ARYZTA Group Underlying Income Statement

Period ended 31 July 2021

		FY 2020
	FY 2021 €m	Re-presented €m	% Change
Continuing Operations
Group revenue	1,525.4	1,669.0	(8.6%)
Underlying EBITDA1	173.4	188.3	(7.9%)
Underlying EBITDA margin	11.4%	11.3%	10 bps
Depreciation & ERP Amortisation	(109.9)	(112.7)	2.5%
Underlying EBITA1	63.5	75.6	(16.0%)
Joint ventures underlying profit, net of interest and tax	-	18.4	(100.0%)
Underlying EBITA including joint ventures	63.5	94.0	(32.4%)
Finance cost, net	(32.8)	(38.2)	14.1%
Hybrid instrument dividend	(46.2)	(46.1)	(0.2%)
Pre-tax (loss)/profit	(15.5)	9.7	(259.8%)
Income tax	(26.7)	(26.9)	0.7%
Underlying net (loss) - continuing operations1	(42.2)	(17.2)	(145.3%)
Underlying net profit/(loss) - discontinued operations1,2	47.4	(0.8)	6,025.0%
Underlying net profit/(loss) - total1	5.2	(18.0)	128.9%
Underlying diluted EPS (cent) - continuing operations3	(4.3)	(1.7)	(152.9%)
Underlying diluted EPS (cent) - total3	0.5	(1.8)	127.8%

1 Certain financial alternative performance measures, that are not defined by IFRS, are used by management to assess the financial and operational performance of ARYZTA. See glossary on page 44 of FY21 results presentation for definitions of financial terms and references used.

2 Following the reclassification of the Group's North America segment to disposal group held-for-sale in January 2021, its results have been presented separately as discontinued operations in both the current and prior periods.

3 The 31 July 2021 weighted average number of ordinary shares used to calculate underlying earnings per share is 991,493,662 (2020: 990,860,563).

ARYZTA Group Balance Sheet

Period ended 31 July 2021

	FY 2021 €m	FY 2020 €m1
Property, plant and equipment	849.8	1,323.4
Investment properties	3.7	6.4
Goodwill and intangible assets	660.3	1,143.1
Working capital	(94.1)	(70.9)
Other segmental assets	6.0	16.3
Other segmental liabilities	(21.9)	(53.3)
Lease liabilities	(136.9)	(228.3)
Net assets of disposal group held-for-sale	62.1	19.2
Segmental net assets (as per revised definition)1	1,329.0	2,155.9
Financial assets at fair value through income statement	-	16.8
Interest bearing loans, net of cash	(65.5)	(742.2)
Deferred tax, net	(78.2)	(98.9)
Income tax	(82.9)	(63.5)
Derivative financial instruments	(0.3)	(0.2)
Net assets	1,102.1	1,267.9

1 Total segmental net assets for the period ended 1 August 2020 includes ARYZTA North America segmental net assets of €734.0 m. These assets and liabilities were disposed of in FY 2021.