Orsero S p A : H1 2022 Results Presentation

H1 2022 RESULTS *

Milan, 12 SEPTEMBER 2022

(*) Six months ended 30 June 2022.

Agenda

•	KEY FINANCIALS H1 2022	Pag. 3
•	OUTLOOK	Pag. 9
•	APPENDIX	Pag. 11

DISCLAIMER

This document (the Document) was prepared by ORSERO S.p.A. (Company) only for the purposes of presenting the Company. The information contained herein may not be complete and exhaustive and no guarantee can be given as to its accuracy.

This Document was drafted on the basis of data and information of the Company and/or in the public domain, and on parameters and assumptions determined in good faith by the Company. However, these parameters and assumptions are not the only ones that could have been selected for the purpose of preparing this Document, therefore the application of additional parameters and assumptions, or the existence of different market conditions, could lead, in good faith, to analyses and assessments that may differ, in whole or in part, from those contained herein.

The information and/or the assessments contained herein have not been subjected to verification by independent experts, and are subject to changes and/or updates. The Company undertakes no obligation to give prior or subsequent communication in the event that any such changes and additions may become necessary or appropriate.

No information contained in this Document can or shall be considered a guarantee or an indication of future operating, financial and equity results of the Company.

To the extent permitted by applicable law, the Company and its corporate officers, managers, employees, and consultants do not make any declaration or guarantee and do not assume any obligation, either express or implied, or responsibility as to the accuracy, sufficiency, completeness and update of any information contained in the Document nor in respect of any errors, omissions, inaccuracies or negligence herein.

This Document is provided merely for information and indicative purposes and does not constitute in any way a proposal to enter into any contract nor a public offering of financial products, nor advice or a recommendation to buy or sell any financial products.

You are the exclusive addressee of this Document which as such cannot be delivered nor disclosed to any third parties nor reproduced, in whole or in part, without the prior authorization of the Company.

The Manager in charge of preparing the corporate accounting documents of Orsero S.p.A., Mr. Giacomo Ricca certifies, pursuant to art. 154-bis, paragraph 2, of Legislative Decree 58/98 that the accounting information contained in this press release corresponds to the documentary results, books and accounting records.

Minor discrepancies in calculating percentage changes and totals in tables of this press presentation are due to rounding.

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KEY FINANCIALS H1 2022*

(*) Six months ended 30 June 2022.

H1 2022 RESULTS - KEEP DELIVERING RESULT IN A CHALLENGING AND UNPREDICTABLE MARKET - FY 2022 GUIDANCE UPDATE

• Economic and Financial Response
• • The Group is continuing to leverage on its business model (multiple sourcing/ wide products range/ diversified geographical scope coupled with vertical integration in banana and pineapple logistic activity) to cope with an ongoing challenging macroeconomic environment
  • • As anticipated in Q1 2022, one of the most significant challenges consists in facing the increase of energy costs, in H1 2022 vs H1 2021 the Distribution BU absorbed an increase of 3 M€ related to utilities expenses of its logistic platforms
  • Capex are in line with planned investments
  • • Main topics are the renovation of the Rungis warehouse (FR), the enlargement and refitting of the Alverca site (PT) and certain ERP projects in Italy/France/Spain

CORPORATE	-	Excellent operating cash conversion despite some working capital absorption related to seasonal swing and higher turnover
	-	As from 1/1/2022 it has been implemented the extension up to the year 2029 of the life in use of the 4 reefer ships owned by Orsero

➢ This change implies a reduction of yearly depreciation to the tune of 3,6 M€ compared to FY2021

- Dividend of 0,30 €/share paid as of May 11, 2022 to Orsero shareholders, total outlay of 5,2 M€

- On July 27 announced 2 strategic agreements in France to acquire 80% of Blampin Groupe (turnover 195 M€, Adj. EBITDA margin 5,5%) and 100% of Capexo (turnover 66 M€, Adj. EBITDA margin 9%)

➢ A consideration of 32 M€ plus earn-out of 8 M€, and 33 M€ plus earn-out of 11,6 M€, to be paid respectively

➢ Closings are expected within Q4 2022 after the fulfilment of some condition precedents: contracts drawing, due diligences finalization, legal authorizations (e.g., French competition authority) ➢ Financing by means of Orsero's own resources and ESG Linked MLT loan facility of 90 M€ already committed by a pool of European banks (see press release on August 4)

BUSINESS

• • FY 2022 GUIDANCE: Updating upward the FY 2022 outlook to reflect the Shipping BU good momentum whilst keeping a wary eye on USD strength (harmful to the banana and pineapple import) and further possible increase in energy costs. Guidance on like-for-like basis vs 2021, excluding possible M&A.
• Market context
• • Fruit and veg market is still experiencing a significant selling price increase and declining volumes(*) - Orsero is doing better than the market trend on both volumes and prices. Fresh produce, as a food staple, is deemed to be quite resilient to stressful scenario
• Distribution BU
• • Strong sales : above H1 2021 (+9,2%)
  • • Sales are up in all countries on the back of higher selling prices across the board, the only exception is France (lower sales volumes of bananas, avocados and other basic commodities);
    • Prices are improving period over period as cost inflation does not cool down, some products are declining in volume as a consequence of their availability during seasonal campaigns
  • Adjusted EBITDA margin comes in at 3,4%, a good level even if slightly lower than 3,9% achieved LY:
  • • good performances of platano canario, pineapples, table grapes and salads offset by a lower margin of avocados in Europe (as compared to an outstanding H1 2021) and bananas (selling prices are still unable to fully cope with higher supply chain costs also related to weaker EUR vs. USD ). Avocados exported from Mexico are improving thanks to the pricing level of US market;
    • almost doubled energy costs (6,2 M€ in H1 2022 vs 3,2 M€ in H1 2021)

•	Shipping BU	*e.g. Italian Household consumption YTD
June 2022/2021 posted a +7% in price and -
	-	CAM Line improves on higher freight rates on reefer activity
	11% in volume (Report CSO Servizi).
	-	Outstanding revenue stream from transportation of dry cargos on the way back from EU to Central-South America	Spanish Household consumption TTM June
	2022/2021 are up by 4,5% in price and
	-	Adjusted EBITDA margin of 37,6% vs 23,6% in H1 2021
	down by -11,7% in volume.

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Executive summary - consolidated figures

M€

H1 2022

H1 2021

Total Change

•

Net sales H1 2022 comes in at 576,2 M€, up +12,3% vs LY

Amount

%

- Distribution BU sales are up by 9,2% on soaring selling prices and slightly

Net Sales

576,2

513,1

63,1

12,3%

declining volumes

- Shipping BU sales are up by 39,4% due to higher freight

Adjusted EBITDA Margin

7,0%

5,2%+180 Bps.

•

Adjusted EBITDA reaches 40,3 M€, up +51,4% or +13,7 M€ vs LY,

with a margin of 7,0%, (up by +180 bps. vs LY)

Adjusted EBIT

26,0

12,6

13,4

106,3%

- All in all a solid performance for both the BUs

Non-recurring items and

( 1,5)

( 0,4)

ns

ns

- Shipping BU confirms extremely good performance in a good market

Top Management Incentives (*)

framework while Distribution BU is slightly under LY but recovering in Q2

Net Profit

19,8

8,2

11,6

141,1%

vs LY as it faces higher supply chain costs and sky-high energy expenses

• Adjusted EBIT leaps by 13,4 M€ to 26,0 M€, +106,3%, as a

consequence of better operating performances and a lower

depreciation of Shipping BU due to the new lifetime plan of the

M€

30.06.2022

31.12.2021

vessels

• Adjusted Net profit is 21,3 M€, up 12,7 M€ or +147,9% vs 8,6 M€ LY

Net Invested Capital

275,0

260,2

- Net profit reported is 19,8 M€ , up 11,6 M€ vs LY

Total Equity

194,7

175,9

•

Total Equity amounts to 194,7 M€ thanks to net profit and positive

Net Financial Position

80,4

84,3

MTM reserves effect (oil derivatives, interest rates and currencies)

NFP/ Total Equity

0,41

0,48

NFP/Adj. EBITDA

1,21

1,59

•

Net Financial Position Excl. IFRS 16(**) is 36,8 M€ (Net Debt)

- improvement vs Dec. 2021 of 8,5 M€ due to a remarkable operating

cash flow generation

NFP/ Total Equity excl. IFRS16

0,19

0,26

•

Net Financial Position, stands at 80,4 M€

NFP/Adj. EBITDA excl. IFRS16

0,66

1,00

- Including 43,6 M€ IFRS16 liabilities, of which abt. 8,0 M€ related to a 2-

(*) Net of tax.

year charter of the 5th reefer vessel (***)

1. Data excluding the effect of IFRS 16, consisting chiefly of incremental Adjusted Ebitda of abt. 7,1 M€ in H1 2022 and abt. 3,8 M€ in H1 2021 and incremental NFP of 43,6 M€ at the end of H1 2022 and 39,1 M€ at the end of 2021.
   (***) The charter contract was signed in Q4 2021 but the reefer vessel is deployed from Jan. 2022 through the end of 2023. Previous charter agreement were 1 year long and were not accounted under the provision of IFRS 16 principle. The right of use is also related to underlying USD/EUR rate and adjusted periodically to consider actual exchange rate.

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