#1Associated British Foods plc Review of annual results for 52 weeks ended 16 September 2023 7 November 2023 Snicked#2Business highlights Strong performance in demanding environment Continued momentum across Retail Revenues well ahead, supported by selective pricing and well received ranges Lower operating profit margin reflecting pricing strategy Space expansion on track with 27 new stores Continued investment in digital capability ■ ■ ■ ■ 2 - Significant growth at Ingredients Good growth in Grocery led by international brands, US focused brands and recovery in Allied Bakeries Sugar sales well ahead, profitability ahead but impacted by British Sugar crop challenges and Vivergo Lower profitability in Agriculture due to tough market conditions Investment of £1.2bn driving increased capacity and capability Good progress on ESG priorities £500m share buyback programme completed; new £500m programme announced Total dividends of 60.0p per share, up 37% to last year Associated British Foods plc#3Financial highlights Group revenue Adjusted operating profit Adjusted profit before tax Adjusted earnings per share Gross investment Free cash flow Net cash before lease liabilities Total net debt Return on average capital employed Total dividends per share * at constant currency 3 2023 £19.8bn £1,513m £1,473m 141.8p £1,171m £269m £895m £2,265m 13.6% 60.0p 2022 £17.0bn £1,435m £1,356m 131.1p £930m £(84)m £1,488m £1,764m 14.0% 43.7p Change +15% * +4% +9% +8% +37% * Associated British Foods plc#4Segmental analysis By business Grocery Ingredients Agriculture 4 Sugar Retail Central Total Revenue £m 2023 2022 4,198 3,735 2,157 1,827 1,840 1,722 2,547 2,016 9,008 7,697 19,750 16,997 Profit £m 2023 2022 448 214 41 169 735 399 159 47 162 756 (94) (88) 1,513 1,435 Margin % 2023 10.7 9.9 2.2 6.6 8.2 7.7 2022 10.7 8.7 2.7 8.0 9.8 8.4 Associated British Foods plc#5Adjusted earnings Adjusted operating profit Net finance income/(expense) excluding lease interest Other financial income Lease interest Adjusted profit before tax Adjusted profit after tax Adjusted profit attributable to equity shareholders Adjusted earnings per share (in pence) LO Taxation on adjusted profit 5 2023 1,513 11 40 (91) 1,473 (346) 1,127 1,103 141.8p 2022 1,435 (11) 13 (81) 1,356 (302) 1,054 1,034 131.1p Change % +5.4 +8.6 -14.6 +6.9 +6.7 +8.2 Associated British Foods plc#6Basic earnings Adjusted profit before tax Acquired inventory fair value adjustments Amortisation of non-operating intangibles Exceptional items Profits less losses on closure and sale of businesses Profits less losses on disposal of non-current assets Transaction costs Profit before tax Taxation Profit after tax Profit attributable to equity shareholders Basic earnings per share (in pence) 6 2023 £m 1,473 (3) (41) (109) (3) 28 (5) 1,340 (272) 1,068 1,044 134.2p 2022 £m 1,356 (5) (47) (206) (23) 7 (6) 1,076 (356) 720 700 88.6p Change % +8.6% +24.5 +23.6 +48.3 +49.1 +51.5 Associated British Foods plc#7Tax ■ 7 Adjusted effective tax rate of 23.5% (2022: 22.2%) Includes the impact on the blended tax rate for the full year of the increase in UK corporation tax rate from 19% to 25% in April 2023 Significant reduction in closing uncertain tax provision due to resolution of historic UK HMRC enquiries. 2023 closing balance £55m (2022: £102m) Expect the Group's effective tax rate in 2024 to be broadly in line with 2023, including the full year impact of the increase in UK corporate tax rate in April 2023 and changes to the mix of profits by jurisdiction Cash tax increased in the year by £37m to £341m mainly driven by the increase in profit before tax in the year. Reduced level of cash tax expected in 2024 due to favourable settlements of historical enquiries and returns Associated British Foods plc#8Pensions 8 The Group's defined benefit pension scheme's aggregate surplus increased by 5% to £1,377m at the year end compared to last year's £1,314m Most recent triennial valuation as of April 2023 showed a surplus of £1,013m (April 2020: deficit of £302m) As agreed with the trustees in September, the Group will receive a cash flow benefit of approximately £70m per year from the abatement of UK employer pension contributions on both the defined benefit and defined contribution schemes with effect from the start of this year Associated British Foods plc#9Free cash flow Adjusted EBITDA Repayment of lease liabilities net of incentives received Working capital Capital expenditure Purchase of subsidiaries, joint ventures and associates Sale of subsidiaries, joint ventures and associates Net interest paid Taxation Share of adjusted profit after tax from joint ventures and associates Dividends received from joint ventures and associates Other Free cash flow Share buyback Dividends Movement in loans and current asset investments Cash flow 9 2023 £m 2,361 (246) (216) (1,073) (94) 4 (74) (341) (127) 107 (32) 269 (448) (345) (10) (534) 2022 £m 2,261 (275) (729) (769) (154) (97) (304) (112) 93 2 (84) (380) 196 (268) Associated British Foods plc#10Gross investment Retail 27 new stores Re-started store refurbishment programme Continued digital investments 10 Energy-efficient lighting upgrades New logistics centre in Florida, USA £547m Agriculture National Milk Records acquisition Kite Consulting & Advance Sourcing acquisitions £92m £205m £141m £179m Central, £7m Sugar - Tanzanian sugar mill - Continued investment in plants - Decarbonisation initiatives: - Replacing coal with natural gas at Bury, UK - Gas turbine improvements at Wissington, UK - Grocery - Elimination of heavy fuel oil at Cantley, UK More efficient slicers at Bury, UK Re-construction of Western Australian bakery Ovaltine production facility in Nigeria - New oil production capacity in the US Various technology investments - Ingredients - New powder packing line for AB Enzymes Fermentation and spray dryer capacity increase at Ohly - Water quality improvements New animal feed mill in Hope Valley, Western Australia Specialty yeast plant Associated British Foods plc#11Capital structure and returns Cash, cash equivalents and overdrafts Net cash before lease liabilities Total net debt Leverage ratio 11 2023 £m 1,388 895 2022 ■ £m 0.96 1,999 1,488 (2,265) (1,764) 0.78 I I Completed £500m share buyback post year end Capital allocation policy of 1.0 to 1.5 times leverage Additional £500m share buyback announced Total dividend of 60.0p per share, including final dividend of 33.1p and special dividend of 12.7p Associated British Foods plc#12Business review MOTOROLA PEFINERY Reception#13||| Revenue £m Adj. operating profit £m Margin ROACE ■ Grocery 13 2023 4,198 448 10.7% 30.0% 2022 Change actual fx 3,735 399 10.7% 29.3% +12% +12% Change constant fx ▪ Resilient performance by our brands in challenging market conditions Second half profitability better than first due to timing of price increases ▪ International brands trading well ▪ US focused brands with strong volumes and good profitability ■ Allied Bakeries improving considerably +11% +8% alfea VITA T GREY RYVITA Keywill 50/50 FRUSU Yumit RYVITA CONALTIN Associated British Foods plc#14||| ■ ■ International brands ▪ Ovaltine ■ Twinings 14 Strong sales in UK, US, Australia and France Sales of fruit and herbal infusion teas now nearly as large as black teas Marketing trials completed as prelude to increased spend next year Strength in Brazil, Switzerland and Nigeria Lower volumes in Thailand powder, China and Myanmar New production facility in Nigeria to serve West Africa ▪ Blue Dragon: increased proportion of international sales Mazzetti: nearly half of sales now outside Europe ■ Jordans: resilient year Patak's: half of sales now outside the UK BARRASS TWININGS EST. 1706 LONDON ENJOY HOT OR ICED! Lemon & Ginger Warming & Zesty to Help Soothe Digestion Naturally Caffeine-Free -over- 300 Years of Expertise 20 Flavoured Herbal Tea TEA BAGS NETWT. 1.06 0Z (30 g) BLUE DRAGON. 105FL0Z (310ml) THAI MANGO SWEET CHILI SAUCE An authentic Thai dipping sauce made with chili, garlic and real mango No anficul fans ar V EVERIFIED Sures Fro Vega Associated British Foods plc#15▪ Mazola ■ US focused brands and businesses 15 Leading brand in US edible oils category Strong volumes with new production capacity Fleischmann's yeast - Leading brand in US retail yeast category Demand remains strong ▪ Stratas joint venture Traded strongly Improved sales mix and good oil procurement Heart Healthy Cholesterol Free 100% PURE Mazola CORN OIL Og TRANS FAT ETEL 194275 FR FS FRYMAX 1 Fleischmann's Active Dry Yeast Ⓡ ORIGINAL NET WT 35 LB (15.88 kg) 104275 FR/FS NON GMO Project VERIFIED nongmoproject.org ing Brand since 1957 OUTSTANDING FRY LIFE LOWERS OIL COSTS PER DAY DEEP FRYING OIL FRYMAX STRATAS CLEAN Supreme SUN MADE WITH TOP QUALITY 100% HIGH OLEIC SUNFLOWER OIL NO PRESERVATIVES/NO ADDITIVES LIGHT, CLEAN FLAVOR Supreme 0 07 51884 91078 6 Associated British Foods plc#16||| UK focused brands and businesses Allied Bakeries 16 Performance trajectory continues to improve Higher volumes, stronger pricing and operational improvement ▪ Ryvita Continues to underperform but brand re-launched with positive early results ▪ After period end, completed acquisition of the Capsicana range of Latin American products, broadening our range of world foods RYVITA THINS Snack it NEW RYVITA THINS Snack SM -88Q FODOL MADE TO AND MUNCH MUNCH MUNCH AND CRUNCHY MUNCH PACKED WITH MORE PUNCH Associated British Foods plc#17[11 ■ Australian focused brands and businesses 17 Tip Top ▪ Don - Higher pricing to recover cost inflation Re-construction of Western Australian bakery Performance held back by labour shortages and distributor insolvency One-off non-cash exceptional impairment charge THE BUN THAT MAKES - THE BURGER Lightly topped with sesame seeds MILK BUN 4.5" 9128 48 PER CARTON IT'S VEGAN Scan for more info ✔ FREEZER TO TABLE on Tip Top's premium burger bun range POTATO BUN 4.5 9108 48 PER CARTON Also available: DAMPER BUN SFLOUR OUSTED 9435 72 per Carton | HAMBURGER BUN 5 9772 72 per Carton BRIOCHE STYLE BUN 4.5 9295 ✓ 6 MONTHS FROZEN SHELF LIFE ✓ AVAILABLE NATIONALLY CONTACT YOUR LOCAL FOODSERVICE DISTRIBUTOR TO ORDER TIPTOP-FOODSERVICE.COM.AU PRE-SLICED BUNS TIPTOP BAKERY Associated British Foods plc#18Revenue £m Adj. operating profit £m Margin ROACE ■ Ingredients ▪ Strong pricing actions ■ ■ Volumes resilient 2023 18 2,157 214 9.9% 16.1% 2022 1,827 159 8.7% 14.8% Large increases in costs of raw material and other inputs Change actual fx +18% +35% Change constant fx +15% +28% Significant investment in capacity, capability and water treatment Associated British Foods plc#19I 19 AB Mauri Significant increases in revenues and profit Particularly strong performance in the US Strong demand for yeast in industry and retail Transition to Wilmar JV in China completed Cumplimos 100 años junto a los que amasan calsa* 100 AÑOS Imágenes ilustrativas. La imagen de la figura humana ha sido retocada y/o modificada digitalmente. Continued heavy investment in water quality; specialty yeast plant commissioned Associated British Foods plc#20■ 20 ABF Ingredients Ohly: robust demand from food and bionutrient customers Investment in Hamburg plant SPI: growth in excipients; better manufacturing efficiency Fytexia: performed well in first full year of ownership AB Enzymes: flat sales with pricing offsetting lower volumes - Investment in powder packing line FRICKE Abwasserplan KAISER KRAF ATH Versorgung, Utilities I chly T only Associated British Foods plc#21Revenue £m Adj. operating profit £m Margin ROACE Agriculture ■ 2023 1,840 41 2.2% 8.4% 21 2022 Change actual fx 1,722 47 2.7% 10.3% ▪ Frontier joint venture continues to perform well +7% -13% ▪ Reduced European pig and poultry herds led to lower compound feed volumes; lower demand for pork in China Change constant fx +7% -15% Dairy sector resilient with higher profitability; acquisitions provide opportunity for an integrated dairy offering Associated British Foods plc#22Sugar Revenue £m Adj. operating profit £m Margin ROACE 22 2023 2,547 169 6.6% 9.7% 2022 Change actual fx 2,016 162 8.0% 10.3% +26% +4% Change constant fx +29% +8% Higher pricing offsets higher costs for beet, cane and energy Exceptionally low European production following crop shortfalls ▪ Strong co-product performance ▪ Significant improvement in Illovo ▪ Substantial losses in Vivergo, significant improvement in the fourth quarter Associated British Foods plc#23■ ■ 23 British Sugar Poor weather conditions reduced sugar production 0.74m tonnes sugar production, 27% lower than prior year Higher cost alternative supplies of sugar secured to fulfil sales obligations Strong pricing for electricity sales offset high energy costs - Sugar operations - Azucarera Overall production 20% lower than prior year after hot and dry weather impacted beet crop Higher sales prices offset by elevated costs for beet, raw sugars and energy China One-off non-cash exceptional impairment charge Associated British Foods plc#24■ ■ ■ ■ 24 Illovo Further development of pre-pack branded sugar in Malawi, Tanzania and Zambia Strong pricing Higher sugar production Recovery in Eswatini production after prior year industrial action Good production in Malawi and South Africa Severe flooding in Mozambique; will not open this season so an exceptional impairment charge taken Construction of new Tanzanian sugar mill to increase production capacity CAND selling yo oro 020 Selling P SON 500 Yambani Jacky ILLOVO Tseketsek loese Associated British Foods plc#2525 Vivergo Fuels Substantial losses in first half High wheat and energy costs Low bioethanol prices Much reduced losses in second half Significant improvement in margin and operating performance Associated British Foods plc#26■ ■ 26 Carbon reduction at Sugar Good progress in decarbonisation programme Carbon reduction in the year 17 completed projects across various sugar processes Projects resulted in a 4% reduction in GHG emissions Carbon transition plan to 2030 published Associated British Foods plc#27Revenue £m Adj. operating profit £m Margin ROACE ■ Retail ■ 27 2023 9,008 735 8.2% 12.0% 2022 7,697 756 9.8% 12.9% Change actual fx +17% -3% Change constant fx +15% Like-for-like sales growth of 8.5%, space growth contributing 6% ▪ Price strategy to partially mitigate inflation ▪ Extension of product range with premium essentials, collaborations and licensing Strongly performing new stores with higher sales densities Delivery of roadmap continues with two new markets and US expansion ▪ Digital investment continues -3% SIF MANGO Associated British Foods plc#28■ UK performance ■ Market share increased to 6.7% from 6.4%* - Sales increased 11% against prior year, with 10% like-for-like growth Unhelpful weather impact in third and fourth quarters After first full year, new website driving growth Now 192 stores in the UK Like-for-like growth vs FY22 Q1 Q2 Q3 Q4 Full year PRIMARK 13% 18% 6% 7% 10% Salisbury, UK *Kantar, Primark market share of total UK clothing, footwear and accessories market including online by value, 52-week data to 17 September 2023 28 Associated British Foods plc#29I I I Europe performance* 29 Sales increased 18% against prior year, with 8% like-for-like growth All countries delivered like-for-like sales growth 17 new stores opened in period - Strong customer demand and good resulting footfall Two new markets: Romania and Slovakia Share of market by value increased in both France and Spain Germany restructuring on track *Excluding the UK Like-for-like growth vs FY22 Q1 Q2 Q3 Q4 Full year YS SHORY-VELL Dundrum, Dublin 3% 15% 7% 8% 8% Associated British Foods plc#30■ ■ 30 US performance Total sales increased 24% against last year 8 new stores opened in period, mainly in the Northeast - 21 stores trading from 0.9 million square feet Good trading in new stores Expanding our regional footprint - Two leases signed in Texas RK Albany, New York Associated British Foods plc#3131 Expanding product offer ved The Edit barbie Barbie Licensing: BarbieTM Rita Ora Supporting Women for Life ■ Strong, relevant product offer Extending the appeal of our range to new and existing customers Further developing The Edit, our premium essentials range Important, authentic brand collaborations Licensed product sales excellent Supporting Women for Life: accessible and affordable products Associated British Foods plc#32I ■ Margin 32 Decision not to fully recover inflation in input costs Adjusted operating margin of 8.2%, down from 9.8% First half: higher costs of bought-in goods, freight rates, labour rates and energy costs Second half: further increase in cost of bought-in goods, driven by strength of US dollar ■ Freight costs decreased in Q4, but labour costs remain higher than a year ago I Higher than expected stock loss Associated British Foods plc#33I ■ ■ Digital update 33 Continue to transform digital capability Enhanced customer website now operating in all 16 markets - Strong traffic uplift with positive customer reaction Increasing traffic to primark.com through organic search, CRM and selected performance marketing trials ▪ Starting to leverage our strong, organic social media engagement Digital platform supporting good uplifts in store like-for-like sales across our markets 15-20% of visits use stock checker Store Locator RITA ORA WOMEN MEN KIDS We Are Primark Primark Cares At Primark, There's Something For Everyone CLICK AND COLLECT Love It For Longer Inspiration PRIMARK Email Signup Primania Gift Card O Search ♡ 8 New website now in all 16 markets BABY HOME BEAUTY COLLABS HALLOWEEN CHRISTMAS Associated British Foods plc#3434 Digital investments Self-checkout technology implemented in 22 stores High utilisation and customer engagement - - Expansion of Click + Collect trial to stores in London - - Roll out continues - Now 57 stores within the UK Service extended to include womenswear Encouraging early results PRIMARK Pyko kartRE PRIMARK PRIMARK PRIMARK Self-checkouts at Wroclaw, Poland 80 Associated British Foods plc#3535 27 new store openings in the period PRIMARK City Point, Brooklyn, USA Mulhouse, France mys ROCKKSHLIFT PRIM PRIMARK Bratislava, Slovakia PRIMARK Melilla, Spain PRIMAR PRIMARK Venice, Italy PRIMARK PRIMAR Bucharest, Romania Associated British Foods plc#36I = 36 Store expansion Well on track to grow to 530 stores by end of 2026 financial year - - 27 stores opened within the period US footprint 21 stores, up from 13 Eastern Europe has 11 stores, up from 5 Announced markets: Hungary and 4 more US states Have visibility for footprint expansion beyond 2026 Open Announced Associated British Foods plc#37■ ■ ■ ■ Primark Cares 37 Some 55% of clothing units sold contained recycled or more sustainably sourced materials, up from 45% 46% of our cotton clothing now contains cotton that is organic, recycled or sourced from our Primark Sustainable Cotton Programme, up from 40% ▪ Scope 3 emissions increased as expected as our business grew, will reduce in time Science Based Targets adopted to reduce carbon emissions Scope 1 & 2 emissions reduced Some 70% of our stores now powered by renewable or low-carbon electricity 141 stores have switched to energy-efficient lighting Associated British Foods plc#38Group outlook eppendorf Multipette Ex Alo Buller 5 AbVista#39Group outlook ■ I ■ ■ ■ I ■ ■ 39 Expecting a year of meaningful progress Consumer headwinds remain, but volatility reduced Stability for Grocery with inflation receding and marketing spend increasing Ingredients modestly declining as it consolidates following very strong growth and continues to invest Agriculture moving forward with integration of recent acquisitions Sugar making a substantial improvement in profitability from British Sugar and Vivergo Primark - Sales growth: space expansion, modest like-for-like growth underpinned by value, product relevance and stretch, digital platform and limited pricing Strong recovery in gross margin and adjusted operating profit margin, above 10% Strong cash generation Associated British Foods plc#40PRIMARK Review of annual results for 52 weeks ended 16 September 2023 44#41Appendix 1 - Primark selling space at year end 41 UK Spain Germany France Republic of Ireland Netherlands US Italy Belgium Portugal Austria Poland Czechia Romania Slovenia Slovakia FY23 # of stores 192 59 30 24 37 20 21 15 8 10 5 5 2 2 1 1 432 sq ft 000 7,725 2,390 1,605 1,203 1,165 1,016 873 747 403 383 242 197 89 75 46 39 18,198 FY22 # of stores 191 56 32 20 37 20 13 11 8 10 522 1 408 sq ft 000 7,620 2,305 1,841 1,044 1,121 1,016 563 552 403 383 242 89 77 46 17,302 Associated British Foods plc#42Appendix 2 - Capital allocation policy 42 ■ - Priority always to invest in our businesses, both organically and by acquisition Investment at appropriate pace and wherever attractive returns on capital can be generated Considerable opportunities, both over the short and medium-term in all our businesses From time to time, the Board may conclude it has surplus cash and capital Financial leverage consistently below 1.0x and substantial net cash balances at both half and full year ends Surplus capital may be returned to shareholders by special dividend or share buybacks Associated British Foods plc#43Appendix 3 - Exchange rates Average rates used to translate the income statement US dollar Euro Australian dollar Closing rates used to translate the balance sheet US dollar Euro Australian dollar 43 2023 1.22 1.15 1.83 1.24 1.16 1.93 2022 1.29 1.18 1.80 1.14 1.14 1.70 Associated British Foods plc#44Appendix 4 - Segmental analysis by geography By geography United Kingdom Europe & Africa The Americas Asia Pacific Total 44 Revenue £m 2023 2022 7,271 6,378 7,552 6,291 2,420 2,028 2,507 2,300 19,750 16,997 Profit £m 2023 488 559 353 113 1,513 2022 533 482 279 141 1,435 Margin % 2023 6.7 7.4 14.6 4.5 7.7 2022 8.4 7.7 13.8 6.1 8.4 Associated British Foods plc