Introduction to Premier Foods January 2021 History and Introduction 2 GROUP OVERVIEW Grocery (67% of sales) • Listed on the London Stock Exchange since 2004 • One of the UK’s largest food manufacturers • Manufactures, distributes, sells and markets a wide range of predominantly branded products in the ambient grocery sector • Market leading product portfolio including cakes, gravies, stocks, cooking sauces & accompaniments, Sweet Treats (28% of sales) desserts, soups and pot snacks • Operates from 16 sites in the UK International (5% of sales) Sales £847m EBITDA £153m 3 WE ARE ONE OF THE UK’s LEADING AMBIENT GROCERY SUPPLIERS 5.6 5.4 4.4 % Share 3.3 3.2 3.2 2.9 2.9 2.5 2.3 2.1 1.8 1.5 Mondelez Nestle Coca-Cola Mars PepsiCo Premier Britvic Heinz Pladis (UB) Kellogg's Unilever ABF Princes Foods Source: Kantar Worldpanel, 52 weeks ending 6 September 2020, excludes Foodservice and out of home 4 STRONG BRAND EQUITY Strong market shares and high household penetration Categories Brands Position Share Penetration Flavourings & Seasonings 1 44% 73% Quick Meals, Snacks & Soups 1 33% 47% Ambient Desserts 1 36% 59% Cooking Sauces & Accompaniments 1 16% 54% Ambient Cakes 1 24% 65% Sources: Category position & market share: IRI 52 w/e 26 September 2020; Penetration: Kantar Worldpanel 52 w/e 4 October 2020 5 PREMIER FOODS IS A VERY DIFFERENT BUSINESS TO 4 YEARS AGO A successful branded growth model with reduced leverage and de-risked pensions 2016 2020 Flat to marginally positive 14 consecutive quarters Trading sales growth UK sales growth Leverage 3.63x 2.33x Pensions NPV: £400-420m NPV: £175-185m1 New management team taking a fresh look at everything with renewed energy and impetus to deliver value 1 – Assuming a buyout surplus and refers to projected high-case assumption RHM investment strategy returns of Gilts +3.25% 6 CONSISTENT & DEMONSTRABLE PROGRESS OVER LAST 3 YEARS Trading profit (£m) Adjusted PBT (£m) 133 93 129 88 123 79 74 117 FY16/17 FY17/18 FY18/19 FY19/20 FY16/17 FY17/18 FY18/19 FY19/20 Net debt (£m) Net debt/EBITDA 523 3.93 496 3.56 470 3.23 2.72 408 383 2.33 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 H1 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 H1 7 NET DEBT PROGRESSION SINCE FY16/17 Demonstrable track record of accelerating debt reduction Net debt 3.93x 2.72x 2.33x /EBITDA 3.56x 3.23x 523 27 £m 496 26 470 62 408 25 383 Net debt FCF Net debt FCF Net debt FCF Net debt FCF Net debt FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 H1 ▪ Significant acceleration in Net debt reduction over last 18 months ▪ Cash interest declining as average debt levels fall ▪ Bank covenant Net debt/EBITDA includes add back of £30m invoice discounting factoring scheme ▪ Net debt/EBITDA target approximately 1.5x in medium term FY19/20 H1 and FY20/21 H1 Net debt stated on pre-IFRS 16 basis 8 CAPITAL STRUCTURE BEING TRANSFORMED £160m of Floating Rate Notes redemptions announced in FY20/21 and credit ratings upgrades 12 months ago Today1 £m £m 350 RCF Fixed notes Floating notes 350 RCF Fixed notes Floating notes 300 300 300 300 250 250 210 200 177 200 177 150 150 100 100 50 50 50 0 0 2020 2021 July 2022 Dec 2022 Oct 2023 2020 2021 July 2022 Dec 2022 Oct 2023 RCF % Margin 3.50% + 3M L RCF % Margin 2.75% + 3M L Annualised interest c.£40m Annualised interest c.£31m S&P and Moody’s B/Stable and B2/Negative S&P and Moody’s B+/Positive and B1/Stable 1 – Pro forma for 16 February 2021 9 Our Strategy 10 OUR BRANDED GROWTH MODEL STRATEGY IS DELIVERING A combination of agility, pace and scale £ Sustainable Cost control Cash & profitable & efficiency generation revenue growth • Leading brand positions • Disciplined working capital • Lean SG&A cost base • Insight driven innovation management • Operational Excellence • Sustained marketing investment • Tight focus on Capex • Capital projects • Collaborative retail partnerships • Options for cash deployment in • Agility, pace & energy • International markets expansion short and medium term 11 OUR INNOVATION STRATEGY Core to the delivery of organic growth 1 Consumer trends Insight Consumer at the heart of the innovation process 1 Building in depth Health & Nutrition consumer understanding 2 2 Convenience Innovation 3 Developing new Snacking and On the go products that make consumers lives easier 4 3 Indulgence Execution Collaborative retail 5 partnerships with Packaging sustainability outstanding in-store execution 12 UK REVENUE PERFORMANCE Established track record of delivering sustainable, profitable revenue growth Quarterly UK revenue growth % movement year on year 23.0% 7.8% 7.3% 7.4% 4.8% +5.5% 4.4% 4.4% 4.0% 3.4% 3.6% 2.6% 1.2% 1.6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY17/18 FY18/19 FY19/20 FY20/21 13 MR KIPLING DELIVERED HIGHEST EVER ANNUAL SALES IN FY19/20 Revenues 17% higher than 2 years ago following brand relaunch Revenue growth since relaunch New Product Development & Brand Investment Mr Kipling ‘Minis’ Mr Kipling ‘Signature’ TV advertising range range FY18/19 +12% FY19/20 +4% FY19/20 vs 2 years +17% ago 14 MAKING PROGRESS AGAINST OUR REVISED INTERNATIONAL STRATEGY H1 revenue growth 14%; equally phased across Q1 & Q2 • Revised International strategy to deliver sustainable profitable revenue growth: - Disappointing performance in FY19/20 - Opportunity evidenced by pockets of success and local ‘in market’ research - Require a different approach to unlock and build sustainable profitable growth as in the UK 1 • New proven Head of International appointed New leadership • New market heads have replaced functional structure heads, e.g. Australia & NZ, N. America, Europe 2 • Shift of resource from UK to ‘in market’ • Market heads based in market, with small local Market focus execution teams • Initial focus on selected markets 3 • Focus on optimising execution by market Product Price - Right product Execution obsession - In right stores 4 Ps - Right price Promotion Place - Right promotional plan 4 • Optimised to local market retail structure Optimised route • Diligence in selection of local partner with right to market capabilities 15 COST SAVINGS PROGRAMME ON TRACK TO BEAT TARGET Target of £5m additional cost savings by FY21/22 for brand re-investment Savings by type Savings by year 10% 10% 26% 20% £5m £5m Cost Cost savings savings 70% 64% Supply chain International SG&A Corporate restructuring FY19/20 FY20/21 FY21/22 Supply Chain Excellence Logistics Planning Engineering 16 OUR ESG STRATEGY Five pillars which stretch across our business • Extend our range of healthier foods Encourage • Enhance nutrition profile of existing range healthier • Educate consumers & colleagues on healthier choices choices Realise • Attract talent & developing skills people’s • Diversity and inclusion potential • Caring for our people • Corporate charity partner, Together for short lives Support our • Supporting our industry, Grocery Aid communities • Support local charities ↓ • Sustainable raw materials Drive ethical • Drive high ethical and compliance standards sourcing across supply chain Reduce our • Climate action environmental • Food waste reduction footprint • Packaging recyclability 17 ESG Healthier choices Realise people’s potential Drive ethical sourcing 1. Attracting talent and developing Drive high ethical and compliance skills standards across↓ supply chain: - Support and develop graduates • Since 2015, we have sourced - Provide extensive training 100% certified sustainable palm opportunities oil 2. Diversity and inclusion • Enhancing nutritional profile of - Deliver training to all leaders by • Target of 100% of soya purchased existing ranges March 2020 and all colleagues meets RTRS standards by 2025 • Offer alternative healthier by end 2021 • 89% of the small amount of direct options, e.g. lower % sugar 3. Caring for our people soya we buy meets these • Clear on pack labelling - Mental health training by 2021 standards 18 ESG Supporting our communities Reducing our environmental footprint 1 • Reduced CO emissions by 5.1% last year 440,000 meals1 donated to 2 and by 40% since 20082 those in need via Fareshare Climate 440,000 • Maintain zero waste to landfill record during Covid pandemic action • Met and exceeded 25% water reduction target by 2020 2 • Zero food waste to landfill 196,000 products donated to Food • Partnership with Company Shop – in 28 NHS hospitals during Covid waste 2020, 1.5 million units redistributed in 196,000 pandemic this way 3 • 93% of packaging by weight is recyclable • Only 13% of our packaging is plastics • 63% of our plastics is recyclable Raised £200,000 for our Packaging • Founding member of UK Plastics Pact previous corporate charity, Mind UK • Removed 500 tonnes of black plastic £200,000 packaging 1 – Equivalent meals based on tonnes donated; 2 - Like for like basis, re-stated for site disposals 19 Recent results 20 HEADLINE HALF YEAR & Q2 RESULTS Exceptionally strong trading driving operational leverage and accelerated debt reduction +15.0% +18.6% £66m ↓£88m 2.33x +8.1% +11.0% +28.7% H1 & Q2 H1 & Q2 branded Net debt1 H1 Trading profit Net debt/EBITDA Revenue growth Revenue growth reduction Business resilience during pandemic; continued focus on branded growth model 1 – On pre IFRS 16 basis, compared to prior year H1 21 STRONGLY POSITIONED WITH OUR BRANDED GROWTH MODEL Market share and household penetration gains, exceptional online growth +260bps share gain H1 +75bps +335bps Desserts Cooking Flavourings QMS Sweet Q2 +95bps Sauces & & Treats Accomps Seasonings PF Market 1 Outgrowing market in 2 3 4 H1 Household Market share1 H1 Online growth all categories penetration2 1 – IRI, 26 September