30 September 2019 SIX MONTHS TO Overview 30 SEPTEMBER 2019 - PowerPoint PPT Presentation

RESULTS FOR SIX MONTHS TO 30 September 2019

̶ ̶ ̶ ̶ SIX MONTHS TO Overview 30 SEPTEMBER 2019 • Priorities to ‘Sharpen, Accelerate, Simplify’ supporting performance S HARPEN • Financial performance in line with our expectations Food & Beverage Solutions double-digit profit growth* Sucralose performed solidly A CCELERATE Primary Products profit lower* in challenging market conditions Benefits from productivity gains and cost discipline • Good manufacturing and supply chain performance S IMPLIFY • Established important sustainable agriculture programme * Change in constant currency 2

Financial delivery Six months to 30 September 2019 Sales +2%* Adjusted diluted earnings per share +3%* +3%* +£19m Adjusted profit before tax Adjusted free cash flow Statutory profit before tax +45% Interim dividend +2.3% Full-year guidance unchanged See descriptions of adjusted results in Note 1 of Statement of Half Year Results for the period to 30 September 2019 on the Company’s website * Percentage changes in constant currency 3

Nick Hampton, Chief Executive Imran Nawaz, Chief Financial Officer AGENDA Business Update Financial Results and Outlook Summary Questions 4

Our Purpose Improving Lives for Generations We believe we can successfully grow our business and have a positive impact on society Building thriving communities Caring for our planet Supporting healthy living 5

Our Purpose Improving Lives for Generations Sustainable agriculture • Multi-year partnership with Land O’Lakes SUSTAIN TM • Supporting sustainability on 1.5m acres of US-grown corn − Acreage equivalent to our annual global corn purchases • Bespoke support for farmers to measure and improve − Greenhouse gas emissions − Nitrogen efficiency − Water usage − Wind erosion − Soil quality 6

Our Purpose Improving Lives for Generations Reducing carbon emissions • New natural gas-fired combined heat and power system at corn wet mill in Lafayette South, Indiana − To be completed in second half of 2021 • New system to deliver significant improvements − Increase energy efficiency − Reduce CO 2 e emissions • Lafayette South and Loudon corn wet mills in US both awarded Energy Star Certification by the US Environmental Protection Agency 7

Food & Beverage Solutions Market trends driving sales growth Sales growth* Consumer trends Six months to 30 September 2019 Healthy Living Clean Label 8% 6% 4% In-line North America Asia Pacific and Europe, Middle Total Latin America East and Africa Sugar Reduction Plant Power >30% 1 +29% 2 +24% 2 Customer pipeline Increase in Increase in speciality fibre sales in relating to sugar food starch sales North America in Asia Pacific reduction projects 1 At 30 September 2019 2 For six months to 30 September 2019 * Percentage changes in constant currency 8

Food & Beverage Solutions Latin America Solutions for customers Changes in labelling Driving opportunities • Technical expertise • Front-of-pack labelling for • Reformulating products to products high in sugar, fat reduce sugar and fat and salt • Category insight − No additional labelling required − Peru and Chile in place • Solutions ‘toolkit’ − Brazil and Mexico moving towards adoption • Applications labs Sales 1 in six months to 30 September 2019 +13% +43% Example of labelling required for products high in sugar, fat and salt in Chile since 2016 Fibres Natural sweeteners 2 1 Sales growth 9 2 Natural high intensity sweeteners

Primary Products Market overview and actions Market conditions remain challenging Clear focus and actions Bulk sweeteners • Volume in US regular carbonated • Mix management soft drinks declined by 1.6% 1 − Optimise customer and product mix • Exports to Mexico slightly lower − Margin expansion opportunities • Corn price volatility • Operational efficiency − Invest capital to drive cost efficiencies Industrial starch − Continuous improvement projects • Closure of paper capacity by customer • Corn grind diversification • Higher paper imports into US − From declining to growing product lines • Weaker paper and packaging demand − Target new end-markets 10 1 Nielsen 26 weeks to 5 October 2019

Three Key Priorities Supporting performance S HARPEN A CCELERATE S IMPLIFY • Increasing customer interaction • Better balance in innovation portfolio • Continuous improvement projects • Collaborating in new ways • 12% growth* in New Product sales • Capital investments to reduce costs • Expanding labs in emerging markets • New partnerships with start-ups • Increasing automation Top-line growth Faster innovation Productivity gains * For the six months to 30 September 2019; percentage change in constant currency 11

AGENDA Business Update Financial Results and Outlook Summary Questions 12

SIX MONTHS TO Financial Highlights 30 SEPTEMBER 2019 S ALES A DJUSTED PROFIT BEFORE TAX S TATUTORY PROFIT BEFORE TAX £1.48bn £181m £164m +2%* +3%* +45% A DJUSTED DILUTED EPS A DJUSTED FREE CASH FLOW I NTERIM D IVIDEND 30.5p £171m 8.8p +3%* +£19m +2.3% Adjusted results and a number of other terms and performance measures used in this presentation are not defined within accounting standards. See descriptions of these items and, where relevant, ratio calculations in Notes 1 and 2, on pages 18 to 21, of the Half Year Results for the period to 30 September 2019 available on the Company’s website. 13 * Percentage changes are in constant currency

SIX MONTHS TO Adjusted Profit Before Tax 30 SEPTEMBER 2019 +£10m +£9m In-line +£2m In-line £(4)m £(2)m Commodities £(11)m £181m £171m £166m Primary H1 FY19 Food & Sucralose Primary Products Central costs Interest Joint Ventures H1 FY20 FX H1 FY20 Products Adj PBT Beverage Adj PBT Adj PBT Solutions Constant Currency See descriptions of adjusted results in Note 1 of Statement of Half Year Results for the period to 30 September 2019 on the Company’s website 14

SIX MONTHS TO Food & Beverage Solutions 30 SEPTEMBER 2019 S TRONG P ROFIT GROWTH T OTAL V OLUME S ALES • 4%* sales growth from increased In line +4%* focus on price and mix management with comparative period ‒ +6%* North America £478m ‒ +8%* Asia Pacific and Latin America A DJUSTED OPERATING PROFIT N EW P RODUCTS SALES ‒ In-line* in Europe, Middle East and Africa (+1% 1 like-for-like) +11%* +12%* • 11%* adjusted operating profit growth £90m £55m • New Products represent 11% of sales See descriptions of adjusted results in Note 1 of Statement of Half Year Results for the period to 30 September 2019 on the Company’s website 1 Like-for-like growth in constant currency, excludes sales of oat ingredients business sold on 29 March 2019 * Percentage changes in constant currency 15

SIX MONTHS TO Sucralose 30 SEPTEMBER 2019 S OLID RESULTS T OTAL V OLUME S ALES (6)% (5)%* • Volume 6% lower ‒ Principally due to phasing £76m • Adjusted operating profit 1%* lower ‒ Customer mix A DJUSTED OPERATING PROFIT ‒ Cost management (1)%* £29m See descriptions of adjusted results in Note 1 of Statement of Half Year Results for the period to 30 September 2019 on the Company’s website * Percentage changes in constant currency 16

SIX MONTHS TO Primary Products 30 SEPTEMBER 2019 C HALLENGING MARKET CONDITIONS T OTAL V OLUME S WEETENER VOLUME • Total volume 2% lower (2)% In line ‒ Sweetener volume in line with comparative period ‒ Industrial starch volume 12% lower • Sweeteners and Starches adjusted operating profit 5%* lower A DJUSTED OPERATING A DJUSTED OPERATING PROFIT S WEETENERS AND S TARCHES PROFIT C OMMODITIES ‒ Good manufacturing and supply chain performance, and cost discipline (5)%* In line* ‒ £4m insurance recovery in comparative period with comparative period • Commodities adjusted operating profit £6m £80m in line* See descriptions of adjusted results in Note 1 of Statement of Half Year Results for the period to 30 September 2019 on the Company’s website * Percentage changes in constant currency 17

SIX MONTHS TO Central, Interest, Taxation and Exceptional Items 30 SEPTEMBER 2019 Change in the six months Item Comment to 30 September 2019 Central costs £2m lower* • Cost discipline • Mainly impact of IFRS 16 leases adoption £2m higher* Net finance charges • Adjusted Effective Tax Rate (ETR) of 20.9% 60bps lower Taxation • Full-year ETR expected to be in range of 20% to 22% Six months to Exceptional Item Comment 30 September 2019 • £5m to simplify business for productivity programme Exceptional charges £11m charge • £6m to close non-core savoury ingredients business * Change in constant currency 18