A G BARR p l c : Annual Report and Accounts January 2021

A.G. BARR P.L.C.

ANNUAL REPORT & ACCOUNTS

2021

WELCOME

I am pleased to present A.G. BARR p.l.c.'s Annual Report for the year ended 24 January 2021.

We aim to provide a fair, balanced and understandable assessment of the Company, including our business model, strategy, performance and prospects in relation to material financial, economic, social, environmental and governance issues.

Our report includes a comprehensive assessment of the principal risks facing the business, and also seeks to identify and evaluate matters that are of common material interest to our stakeholders and to our business, understanding how they may affect our ability to create value over time. These matters are integral to our planning processes and help support the delivery of our strategy.

The COVID-19 pandemic has created a volatile environment over the past 12 months, however despite this challenging backdrop we have ensured our sites remained safe and operational and delivered a strong performance in the circumstances, further demonstrating the resilience of our people, business and brands.

Our overarching business purpose remains steadfast - to create value, with values - for our shareholders, consumers, customers and for society as a whole.

I remain confident in both A.G. Barr's ability to navigate these very uncertain times and in our longer-term continued success, delivering on our strategic priorities - connecting with consumers, building brands, driving efficiency and building trust.

Roger White

Chief Executive

Strategic Report

Corporate Governance

Accounts

1

A.G. Barr is a UK-based branded consumer goods business focused on growth, building great tasting brands that people love.

Our overarching purpose is to create value, with values - for our shareholders, consumers, customers and for society as a whole.

Revenue	Profit before tax* (before exceptional items)
£227.0m	£32.8m
(11.2)%	(12.3)%
	Basic earnings per share*
Net cash from operating activities	(before exceptional items)
£50.7m
22.31p
26.4%	(15.8)%

*  Items marked with an asterisk are non-GAAP measures. Definitions and relevant reconciliations are provided in the Glossary on pages 165 to 167.

In this report

Strategic Report			Corporate Governance
Our Business	2		Board of Directors	52
Our Brands	4		Corporate Governance Report	54
Chairman's Introduction	6		Audit and Risk Committee Report	67
Our Business Model	8		Directors' Remuneration Report	71
Our Strategy and Financial KPIs	10		Directors' Report	99
Chief Executive's Review	12	Statement of Directors' Responsibilities	104
Our Strategy in Action	18
Responsibility Report and Non-Financial KPIs	22
Financial Review	36
Risk Management	43

Accounts

Independent Auditor's Report to the
Members of A.G. BARR p.l.c. only	105
Consolidated Income Statement	114
Statements of Financial Position	115
Statement of Comprehensive Income	116
Statement of Changes in Equity	117
Cash Flow Statements	119
Notes to the Accounts	120
Glossary	165
Reconciliation of Non-GAAP Measures	166
Notice of Annual General Meeting	168

Corporate Governance

Our section 172(1) statement describing how the directors have had regard to the matters set out in section 172(1)(a) to (f) when performing their duties under section 172 of the Companies Act 2006 is set out in the Corporate Governance Report on pages 54 to 66 and is incorporated by reference into this Strategic Report.

2 A.G. BARR p.l.c.  Annual Report and Accounts 2021

OUR BUSINESS

A.G. Barr is a UK-based branded consumer goods business focused on growth, building great tasting brands that people love.

Our overarching purpose is to create value, with values - for our shareholders, consumers, customers and for society as a whole.

Established over 140 years ago in Scotland and now operating across the UK and internationally, we strive to grow our business both organically and through partnerships and acquisition.

Employing 860 people across 9 UK locations, we are proud to be a responsible business that listens to our consumers, builds lasting customer relationships, takes care of our employees, gives something back to our communities and works to minimise our environmental impact.

Number of employees

860

At our heart is the Barr Soft Drinks business unit, home to some of the UK's most loved soft drinks brands.

We make it our business to understand what consumers want.

Number of brands

16

Whether it's the iconic IRN-BRU, launched in 1901 and still going strong today, our vibrant RUBICON fruit and juice drinks, or our unique range of BARR flavours, our brands offer people a choice of great tasting products and bring exciting innovation to the market.

Enhancing our portfolio, we also operate long-term partnerships, complementing our own range of products with global brands SNAPPLE, SAN BENEDETTO and BUNDABERG Brewed Drinks in the UK and beyond.

UK sites

9

But we're not just about soft drinks - our FUNKIN business unit operates in the exciting and growing cocktail market. The FUNKIN brand provides innovative and unique purées, syrups, mixers and now ready to drink cocktails, for behind the bar and at home.

Strategic Report

Corporate Governance

Accounts

3

OUR PURPOSE:

To create value, with values - for our shareholders, consumers, customers and for society as a whole.

OUR STRATEGIC PRIORITIES:

Connecting	Building	Driving	Building
with consumers	brands	efficiency	trust

STRATEGY

AND KPIS

For information on our Strategy and Financial KPIs see pages 10 and 11.

OUR BUSINESS MODEL:

Make	Move	Market	Sell	Behave	Create
responsibly	value

BUSINESS

MODEL

For information on our Business Model see pages 8 and 9.

OUR RESPONSIBILITY COMMITMENTS:

Act with	Respect the	Support	Give back
integrity	environment	healthy living

RESPONSIBILITY REPORT

For information on our Responsibility Report see pages 22 to 35.