FY 2018 Investor Presentation | March, 2019 1 Index Company - PowerPoint PPT Presentation

FY 2018 Investor Presentation | March, 2019 1

Index ▪ Company profile 3 ▪ FY 2018 Highlights 11 ▪ FY 2018 Financials 15 • EBITDA • Net debt development ▪ FragranceNet.com 23 ▪ Outlook 26 2

A unique value adding proposition Differentiated Long term relation- Broad and relevant sourcing Supply chain ships with A-brand assortment of FMCG excellence suppliers Linking suppliers Delivering to the right place, and customers that are difficult to at the right time connect Fully bonded Regulatory supply chain expertise Serving complex niche Providing customers markets worldwide tailored solutions Highly efficient logistical platform 3

Serving a diversified customer base worldwide Empowering wholesalers and retailers (B2B) Serving complex end-markets in maritime Experienced in retail (B2C) Partner in remote distribution 4

Active in markets that are exposed to attractive long term trends Business segments B&S Group markets/ channels Attractive long term trends Contribution to B&S Group turnover 2018 Turnover per segment 2018* Market Channel 40.7% Outsourcing 27.2% Value retail € 1,209 M Fragmentation and complexity 6.7% Globalisation E-commerce 7.3% A-brands and 10.3% luxury € 456 M Travel Compliance 7.8% € 137 M Column1 *On a constant currency basis 5

Entrepreneurial segments supported by centralised backbone Legal & IT HR Distribution Finance & Control Compliance Distribution of bonded liquors and Specialty distribution of FMCG Specialty retail at high traffic health & beauty products to airports and remote locations products to maritime and remote specialty retailers and online end- markets customers 25% 67% 8% of Group turnover of Group turnover of Group turnover 6

Driven by a defensive and global profile Serving over 100 complex end markets worldwide Robust and global product categories that 1 tend to outperform in economic hardship 2018 turnover per region (in € M) 2 Solid sales channels with growth potential 998 EU 142 US Bonded supplier status limits 3 343 AS macroeconomic impact 201 ME Strong balance sheet with high solvency 4 levels and healthy net debt / EBITDA ratio 49 AF 13 OC Large and diversified supplier and customer 5 base with long-term relationships 7

Resulting in a strong track record of profitable growth Discontinuation of non- premium-brand 1,769* perfumes Turnover 117* EBITDA CAGR ’09 - ’18 CAGR ’09 - ’18 1,495 106 1,339 13.3% p.a. 18.2% p.a. 1,338 89 Pressure on 1,152 84 China luxury gifting 1,002 903 65 825 59 52 677 47 573 38 26 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dutch GAAP IFRS Dutch GAAP IFRS *2018 on a constant currency basis, EBITDA adjusted for acquisition costs and sharebased payments 8

Well positioned to capture growth opportunities Synergy effects Acquisitive growth Boosting organic Organic growth of acquired company growth • Business model fit Expansion by increasing presence in • Integration focused Value chain expansion on organic growth our current markets Sourcing synergies Tapping into new products and Strategy markets Combined market Disciplined on price knowledge Initially structured as Cross-selling of products to existing partnership or JV customers Centralised backbone Rapid back office and – plug & play sourcing integration Utilising the growth of existing customers by matching their increased demand for our products 9

FY 2018 Highlights 10

FY 2018 – Financial Highlights ▪ 16.8% to € 1,746.5 M (18.2% to € 1,768.6 M on a constant currency basis) Overall turnover growth Organic turnover growth ▪ 9.6% (11.0% on a constant currency basis) ▪ Adjusted EBITDA* increased by 11.5% to € 116.9 M (2017: € 104.8 M) on a constant currency basis Adjusted EBITDA ▪ If hedge accounting would have been applied as of January 2017, EBITDA increased by 15.2% on a constant currency basis compared to 2017 Financial position ▪ Solid financial position with net debt / EBITDA at 2.7** ▪ Acquisition of FragranceNet.com, consolidated from October 1, 2018 onwards, contributed FragranceNet.com directly to turnover and EBITDA growth in the HTG Segment *Adjusted for acquisition costs and share based payments **Taking into account the FY EBITDA of FragranceNet.com over 2018 11

FY 2018 - Key developments Channel and Acquisition Transition to Operational public efficiency market FragranceNet company focus growth .com • Further growth along the Expansion of logistical • Raised profile; beneficial in • Challenging global • value chain platform executing our growth economic markets Substantial footprint in USA strategy • Start of transfer of • • Expansion of leading operations to our new Further growth in health & • Enthusiastic workforce • positions internationally warehouse in B&S Segment beauty product category committed to support growth 12

FY 2018 - Business segment developments ▪ Overall increase in demand, especially in ▪ Remote business continues, no ▪ Growth in number of passengers Asia indications that number of missions and ▪ New contract awarded for Malaga troops are as yet being reduced, working ▪ Increased turnover in health & beauty ▪ Airport concessions for Abu Dhabi and on new contract for government & product category mainly as a result of Berlin to get into operation (early) 2020 defence organisations ongoing focus on EU client portfolio and ▪ Working on multiple tenders intensified cooperation with key accounts ▪ Maritime sector stable in value retail ▪ Expansion of logistical platform and start ▪ FragranceNet.com consolidated from of operations in the warehouse resulted fourth quarter onwards, immediately in temporary higher staff costs enhancing earnings ▪ In second half, we were confronted with ▪ FragranceNet.com integration ahead of major increases in international transport schedule costs; most could be passed on to customers with delay into 2019 € million € million € million 2018 2017 2018 2017 2018 2017 Turnover 1,209 (24.1%) 974 Turnover 456 (7.0%) 426 Turnover 137 (5.0%) 130 EBITDA 82 (26.6%) 65 EBITDA 24 (-17.8%) 29 EBITDA 11 (2.9%) 10 Turnover and EBITDA on a constant currency basis 13

FY 2018 Financials 14

FY 2018 - Key figures Commentary € million (unless stated Δ (%) Δ (%) FY 2018 FY 2018 FY 2017 otherwise) constant constant FX FX ▪ Turnover grew 16.8% (18.2% Profit or loss account on a constant currency basis) Turnover 1,746.5 1,768.6 1,495.8 16.8% 18.2% ▪ Gross profit grew 14.2% 14.1% 14.1% 14.4% Gross profit ( margin ) 245.4 248.8 214.9 14.2% 15.8% ▪ Gross margin affected by temporary higher staff costs Other gains and losses (3.1) (1.2) 3.3 and increased transport costs 6.4% 6.6% Adjusted EBITDA (margin ) * 111.5 116.9 104.8 6.4% 11.5% in H2 2018 ▪ Other gains and losses (a non cash item) largely driven by the Earnings per share (in 0.72 0.81 adverse development of the euro) EUR/USD exchange rate * Adjusted for acquisition costs and share based payments ▪ Hedge accounting will be applied as of 2019, eliminating timing differences (other gains and losses) 15

FY 2018 - Overall turnover growth analysis Overall turnover growth (in € M) -1.4% +7.2% +11.0% 16

EBITDA development Adjusted EBITDA development (in € M) Commentary ▪ Adjusted EBITDA grew 6.4% to € 111.5 M 116.9 116.9 +11.5% 5.4 3.5 ▪ +15.2% On a constant currency basis, 113.4 111.5 adjusted EBITDA increased 104.8 11.5% to € 116.9 M +6.4% ▪ Effective 2019, B&S Group 101.5 applies hedge accounting, resulting in elimination of other gains & gosses line that affects EBITDA (non-cash) ▪ Applying hedge accounting – comparing 2018 to 2017 excluding the other gains and losses line – results in adjusted FY 17 FY 18 FY 17 FY 18 EBITDA growth of 15.2% on a Adjusted EBITDA at constant currency Elimination of other gains & losses line by applying hedge accounting constant currency basis. 17

FY 2018 - Financial position € million (unless stated otherwise) YE 2018 YE 2017 Commentary ▪ Financial position Net debt increase mainly due to the FragranceNet.com Solvency ratio 34.3% 42.7% acquisition and associated Net debt 312.7 195.1 consolidation, and the increase Net debt / EBITDA 2.7 * 1.9 in working capital Inventory in days 92 91 ▪ Balance sheet and as such solvency impacted by € 87 M Debtors in days 43 34 intangibles following *Taking into account the FY EBITDA of FragranceNet.com over 2018 FragranceNet.com acquisition ▪ Solvency Financial position well within pre-determined objectives 6.7%* ▪ Solvency position remains strong 42.7% 41.9% 34.3% 2016 2017 2018 *Impact of FragranceNet.com acquisition on solvency 18

Net debt level as at December 31, 2018* (in € M) A view on 2019 ▪ We expect to continue our growth in line with disclosed MTOs ▪ No capex expected in excess of 2018 levels Acq. ▪ Limited working capital Topbrands 30.4 174.1 requirements for FragranceNet.com *After dividend distribution 19