Ebro Foods S A : 9M 2023 Presentation of the results for the third quarter 2023

RESULTS 9M 2023

CONTENTS

1. INTRODUCTION
2. BUSINESS UNIT RESULTS 9M23
3. 1. Rice
   2. Pasta
4. CONSOLIDATED GROUP RESULTS 9M23
5. 1. P&L
   2. Debt Performance
6. CONCLUSION
7. CORPORATE CALENDAR 2023
8. CALCULATION OF ALTERNATIVE PERFORMANCE MEASURES
9. LEGAL DISCLAIMER

2

1. Introduction

We are pleased to announce that our results for the first nine months of the year show that in the third quarter, the Group continued to register good results.

Despite a backdrop of ever greater geopolitical tensions, the cost of energy and some raw materials are currently remaining stable.

However, we also experienced extremely high temperatures in the third quarter, which have had an adverse impact on harvests.

3

2.1.1 Rice 9M23

The exceptional heatwaves across Europe this summer are having an adverse impact on local grain harvests.

In North America, the long grain rice crop is better than last year in terms of volume, although yields are slightly lower. The japonica rice crop in California is very good and prices are already down by 20%.

In the last quarter, several countries announced export restrictions, starting with India. India and Pakistan have imposed minimum prices on basmati exports, creating price tensions in the market. However, this has not had a negative impact on Ebro, which has ample stocks of this variety.

We continue to expand capacity for our fastest growing products and are currently doubling capacity for Doypacks in Jerez. In 2024, Riviana will complete its investments, which will allow it to double its capacity of RTS, and will also finalise its first Doypack plant. This investment is in line with our strategic objectives to develop products with the highest added value.

In Europe, the difference in volumes recorded in H1 has narrowed, as the figures for H1 2022 were heavily influenced by the outbreak of the war in Ukraine. In the US, we are now above last year's y-o-y figures. In the Middle East, we are up by more than 40% thanks to sharp rises in the sale of our Tilda and Abu Bint brands.

We are consolidating our presence in Africa with Morocco as our main market. We are also ramping up our presence in other countries such as Ghana and Libya. One of our objectives is to expand our presence in this region.

4

2.1.2 Rice 9M23

Sales increased by 6.7% year on year to EUR1,828.9 million. This percentage reflects a lower inflation rate than in previous quarters.

Advertising investment was up 5.3% to EUR40.6 million. This increased investment is supporting new launches, while maintaining our market share as consumers are more focused on saving money.

Ebitda-A grew by 8.9% to EUR232.3 million. InHarvest contributed EUR4.6 million. The exchange rate had a negative impact of EUR2.9 million on this figure.

Operating profit grew 9.1% to EUR175.8 million.

EUR Thous.	9M21	9M22	9M23	23/22	CAGR 23/22
Sales	1,347,208	1,714,060	1,828,907	6.7%	16.5%
Advertising	31,374	38,547	40,587	5.3%	13.7%
Ebitda-A	185,268	213,385	232,303	8.9%	12.0%
Ebitda-A Margin	13.8%	12.4%	12.7%	-	-
Ebit-A	142,133	163,880	182,380	11.3%	13.3%
Operating Profit	145,854	161,177	175,794	9.1%	9.8%

5

2.2.1 Pasta 9M23

The price of durum wheat has fallen this year, but the poor quality harvest in Italy and a smaller harvest in Canada have strained prices again.

Food consumption in France has fallen sharply (-2.8% in Q2 2023 v. Q1 2023). On the other hand, consumption of fresh pasta is increasing rapidly after a decline in 2022. We have also returned to providing products that were discontinued last year due to a lack of raw materials (potato flakes). Our market share has now reached 46%.

The start-up of new gnocchi production lines in France and Canada will ensure that this growth is sustainable.

Bertagni has successfully passed on cost inflation to its retail price, expanding its product range and boosting distribution.

Garofalo is also enjoying healthy growth in the US and Canada. However, sales in Italy and France are down on last year due to the stockpiling caused by the war in Ukraine, as well as there being fewer promotions in order to increase margins.

6

2.2.2 Pasta 9M23

Turnover remains stable and stands at approximately EUR482.4 million. Roland Monterrat contributed EUR28.1 million in 9M 2022. Like-for-like growth stands at 6.8%.

Advertising expenditure returned to 2021 levels, increasing by 24.6% to EUR24.7 million.

The Division's Ebitda-A grew by 51.2% to EUR62.4 million, with the margin growing by 4.3 p.p. The exchange rate had no impact on these results. In 9M 2022, Roland Monterrat recorded a negative Ebitda-A of EUR1.7 million.

Operating Profit is back on track and grew to EUR34.9 million.

EUR Thous.	9M21	9M22	9M23	23/22	CAGR 23/21
Sales	405,715	479,619	482,448	0.6%	9.0%
Advertising	25,474	19,795	24,656	24.6%	-1.6%
Ebitda-A	46,646	41,278	62,427	51.2%	15.7%
Ebitda-A Margin	11.5%	8.6%	12.9%	-	-
Ebit-A	21,519	16,391	38,057	132.2%	33.0%
Operating Profit	18,471	-5,459	34,867	-	37.4%

7

3.1 P&L 9M23

The consolidated sales figure grew by 5.7% to EUR2,306.8 million, primarily thanks to the rice division.

Ebitda-A grew by 16.1% to EUR284.4 million. The Ebitda-A margin increased by 1.1 p.p. to 12.3%, driven by the operational improvements of investments made in recent years, the stabilisation of our main raw material costs and the reduction of other costs, such as transport and energy. Inflation is still affecting other raw materials including certain rice varieties and markets, potato flakes, eggs and milk. Currency had a negative impact of EUR2.9 million on this figure. In geographic terms and by origin, EBITDA-A breaks down as follows: Spain 5.4%, North America 34.5%, UK 13.5%, Rest of Europe 40.9%, Asia 3.8% and Other 1.9%.

Net Profit* grew by 60.9% to EUR140.1 million and outperformed the other results, due to the extraordinary loss of EUR20 million in the same quarter in 2022 caused by the sale of Roland Monterrat. A profit of EUR1.8 million was also recorded from the sale of the Woodlands plant. Net Profit for 2021 included capital gains from the divestment of the North American dry pasta business, and is therefore also not comparable.

EUR Thous.	9M21	9M22	9M23	23/22	CAGR 23/21
Sales	1,752,493	2,183,329	2,306,797	5.7%	14.7%
Advertising	56,431	58,079	64,728	11.4%	7.1%
Ebitda-A	221,163	244,896	284,366	16.1%	13.4%
Ebitda-A Margin	12.6%	11.2%	12.3%	-	-
Ebit-A	151,731	169,228	208,835	23.4%	17.3%
Operating Profit	153,205	145,438	204,076	40.3%	15.4%
Pre-tax Profit	152,149	126,708	202,213	59.6%	15.3%
Net Profit*	155,219	87,085	140,136	60.9%	-5.0%
ROCE-A %	N.A.	9.1	11.9	-	-

*Net profit attributed to the parent company

8

3.2 Debt Performance

We ended 9M with Net Debt standing at EUR588.2 million, EUR174.4 million less than at year-end 2022. This figure includes the payment of annual dividends.

Working capital fell by EUR130.9 million compared to year-end 2022 due to reduced stocks.

As we announced in the Q1 2022 results, we prepaid tax to the French authorities in that quarter on the capital gain of the sale of the Panzani shares, the payment of EUR25.1 million was finally recovered this year. Therefore, although the corporate income tax payment* in 9M 2023 was EUR44.0 million, the balance only came to EUR18.9 million.

Capex investments during the period amounted to a total of EUR102.5 million, up EUR26.9 million year on year. We expect to have invested approximately EUR140 million in Capex by the end of the year.

The sale of the Woodlands plant, which we acquired when we purchased InHarvest's assets, generated EUR10.6 million.

EUR Thous.	30 Sep 21	31 Dec 21	30 Sep 22	31 Dec 22	30 Sep 23	23/22	CAGR 23/21
Net Debt	904,134	504,723	712,008	762,635	588,217	-17.4%	-19.3%
Average net debt	896,265	865,418	652,920	645,809	707,358	8.3%	-11.2%
Equity	2,070,019	2,101,627	2,239,017	2,164,438	2,229,075	-0.4%	3.8%
ND Leverage	43.7%	24.0%	31.8%	35.2%	26.4%	-17.0%	-22.3%
AND Leverage	43.3%	41.2%	29.2%	29.8%	31.7%	8.8%	-14.4%
x Ebitda-A (ND)		1.43		2.28
x Ebitda-A (AND)		2.45		1.93

*Affects cash flow only, not the income statement.

9

4. Conclusion

As the first nine months of 2023 draw to a close, our Ebitda-A stands at a very healthy EUR284.3 million.

Our pasta businesses have returned to profitability in all markets.

As predicted in previous presentations, working capital and debt levels are improving.

With the cost of energy and several of our key raw materials beginning to stabilise, we do not anticipate any further price increases.

We expect Ebitda-A to reach EUR372-378 million at the end of the year. This would be a significant achievement, taking Ebitda-A above the level prior to the sale of Panzani.

10