Royal WessanenA leading player in organic food in Europe

Q1 2013 roadshow presentationUpdated 26april 2013

www.wessanen.com @RoyalWessanen

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In a nutshell

A leading European organic food player

• Own operations in Benelux, France, Germany, Italy, UK + export operations

• Pioneering brands | indulgence & nutritional

• Well-managed supply chain | Strong focus on quality, innovations, brands

• Factories in UK (tea), Germany (vegetable spreads) (cereals/bars/spreads/honey) and Italy

(soy/non-dairy drinks)

• Turnover €711mln (2012) | 2,064 employees (on average)

Organic food market

• Attractive part of food market | growing | low per capita consumption | €22bn market

• No colouring/flavouring | GMO-free | no artificial fertilisers | animal health

• Unique certification system | grown and processed according to EU regulation

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Portfolio approach focus on organic food

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2009 2012

€711m

Focus and investment into core brands & categories in organic in Europe

Grocery

HFS

IZICO

ABC

Others

€1585m

What is organic?!

Strict criteria to be allowed to be labelled organicDemonstrably free from GMO, pesticides and growth hormonesStrict rules on animal welfareSevere restrictions on fertilisers, herbicides and pesticidesSevere restrictions on additives and processing aids

All about being produced and processed in line with organic principles

Organic products promote health and well-being

Holding benefits for the planet and for future generations

All about nutrition and taste !

Organic food is controlled by a unique European certification system

At Wessanen, our vision is to make our organic brands most desired in Europe

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“Sustainability is an essential and

natural part of our daily work.”

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Nutrition and food issues Transparency

Sustainability Weight and obesity

ORGANIC

Our vision is to build the most desired brandsin Europe in our focus area

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Healthy nutrition

Ethicalsustainable

Authentictaste

Functionalfood

Strategic objectives

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Sales growth

• Grow core brands

• Grow core categories

• Build strongholds in new markets

• Country specific growth strategies

• Launch fewer, bigger, better

innovations

• Execute acquisitions shortlist

Profitabilty

improvement

• Central sourcing savings

• Pricing strategies towards

customers

• Improve operational excellence

with SAP

• Filling own factories

Enablers

• Improve talent performance

management / building

connected leadership

• Simplify how we are conducting

business

• Activate Organic Expertise Centre

(OEC), integrate Quality

Wessanen 2015

A more integrated

consumer and customer driven organisation,

being focussed, less complex, more efficient and integrated

Transformation programme ‘Wessanen 2015’

1. Create more focus on our activities

• Reduction of approx. 300 FTE• Expected one-off costs €(21) mln cash and €(7.0) mln non-cash impairment Deurne plant• Expected savings €15 mln p.a. from 2014 onwards

3. Addressing low-yielding and non-performing activities• Strongly reducing German grocery presence, changing go-to-market approach

• Focus in Italian grocery on non-dairy (soy)

2. Reduce complexity and simplify processes• Cutting the tail / reducing number of SKUs at

− Dutch brands; French HFS brands; Export

• Centralising quality department

• In the Netherlands, focus on one franchise formula (Natuurwinkel), to end GooodyFooods formula

• Supply chain to manage our plants as of 2013 and to streamline processes

• Further increased focus on core brands and core categories

• Expansion number of CBTs (category brand teams)

• Split in branded and distribution organisation

− Benelux operations

− French HFS operations

Net debt / Leverage ratio

0

25

50

75

100

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13

0

1

2

3

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13

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Net debt

Leverage ratio

€63 mln

1.7x

In € mln

A very sound financial position

In € mln Mar 13 Dec 12 *

Restated

Non-current assets 152.7 154.5

Current assets 214.4 183.4

TOTAL ASSETS 367.1 337.9

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In € mln Mar 13 Dec 12 *

Restated

Dec 12

Reported

Total equity 115.8 110.8 101.6

Non-current liabilities 20.3 81.0 90.2

Current liabilities 231.0 146.1 146.1

Total liabilities 251.3 227.1 236.3

TOTAL EQUITY & LIABILITIES 367.1 337.9 337.9

*Restated for IAS19R

Q1 2013 key figures

In € mln Q1 2013 Q1 2012

Revenue 172.5 170.6

Autonomous growth (1.0)%

Normalised EBIT 9.3 2.9

As % of revenue 5.4% 1.7%

Exceptional costs (1.1) -

EBIT 8.2 2.9

Net result, attributable to equity holders 5.1 1.7

Earnings per share (EPS) 0.07 0.02

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EBIT improvement

Gross profit

Operating costs

Marketing spending

Q1 2013 performance

• We have to cope with uncertain economic times, deteriorating consumer

confidence and increased unemployment

• Consumer appreciation for healthy and nutritional food is continuously growing– Consumers are gradually incorporating more of a sustainable agenda when

making food purchases– Consumers show growing engagement with organic food

• Execution of ‘Wessanen 2015’ running smoothly– A transformational programme to become a more profitable company– €(0.9) mln of costs incurred; cumulative costs €(17.2) mln– Total costs (with a cash effect) of €(21) mln expected– Savings of €15 mln expected from 2014 onwards

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Q1 2013 performance (cont’d)

• Grocery continues to show healthy performance– Most core categories showing growth– Our brands (e.g. Bjorg, Clipper, Whole Earth) performing well– Volume impacted by

• Lower private label sales in UK and Italy • Withdrawal from low-yielding German and Italian grocery activities

• Positive signs visible at Health Food Stores, such as– First indications of restructuring and refocus Bonneterre encouraging– Allos growing sales, benefiting from its new positioning and innovations– Benelux showing growth at existing formula and independent stores– The Benelux operations to be split in branded and wholesale/distribution

businesses to increase focus

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Q1 revenue

30%

41%

13%

16%

Grocery HFS IZICO ABC

Strong growth driven by

• Brand support (TV/360°)

• In-store & consumer activation

• Innovation

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• First TV commercials since 2007

• A challenger to all conventional food brands

WHAT HAPPENED

TO OUR FOOD ?

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• 11% growth in the UK

• Integration in UK on plan

• Roll-out Europe

- France: Q1

- Netherlands: Q2

- Germany: Q3

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• New positioning and

Communication

• New range from

March 2013

France Alter Eco – leading in French fairtrade

• Sale and purchase agreement signed– Closing expected early June, depending on satisfaction certain closing conditions

• France Alter Eco– Paris-based– Revenue 2012 of €16.5 mln– Organic and fair trade products such as chocolate, coffee, tea and juices– Developed strong partnerships with farmers’ cooperatives– Around 100 products

• Marketed in grocery, HFS and out-of-home channels– Multiple paid 0.2-0.3x revenue

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Q1 2013 performance (cont’d)

• IZICO making good progress in becoming one company– Deurne plant has been closed per end of March– New structure and roles at various departments are being implemented– Autonomous revenue up: retail growing, out-of-home impacted by sluggish demand– Beckers and Bicky performing in line with expectations

• At ABC , Daily’s maintained its market share, despite lower volumes– Pouches line expanded with 6 new flavours

• 3x Tropical and 3x light, now totalling 13– Little Hug continues to grow, gaining market share– New campaign launched

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Retailer Support64th of July promotion

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Appendices

Attractiveness organic food markets

European organic food an attractive, growing segment– Size €21 bn; 2011 growth around 6%– <3% of total European food market

Increasing consumer appreciation

Still low per capita consumption

– European Union €30 per annum

Consumers increasingly convinced of benefits of organic foodregarding health, taste and environment

Grocery and Health Food Stores channels developing at different growth path

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Wessanen business principles

• Compliance with laws: being a responsible partner in society, acting with integrity towards all stakeholders and others who can be affected by our activities

• Environment: in line with commitment to sustainable development, we will do all that is reasonable and practicable to minimise adverse effects on the environment

• Product safety: we aim at all times to supply safe products and services

• Free market competition: we support free market competition as basis of conducting business; we observe applicable competition laws and regulations

• Child, bonded and forced labour: under no circumstances we are making use of forced or bonded labour; we do not employ children in violation of relevant conventions of ILO

• Human rights: we support and respect human rights and strive to ensure that our activities do not make it an accessory to infringements of human rights

23We expect suppliers and business partners to comply with the above principles

Wessanen’s supply chain

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Palm oil - member RSPO

• Palm oil is important, versatile raw material for food

– Only be cultivated in tropical areas of Asia, Africa and South America

– Concerns that demand causing expansion of plantations into eco-sensitive areas

• Since March 2011 Member of Roundtable on Sustainable Palm Oil (RSPO)

– Global multi-stakeholder initiative

– Encouraging sustainable production/use palm oil

– Wessanen commits to organisation’s objectives

• In 2011, we developed policy to govern palm oil sourcing and guidelines for implementation in

partnership with our suppliers

• Committed to switching palm oil to RSPO certified sustainable palm oil during 2012-13

– RSPO certified segregated palm oil for organic

– GREEN PALM certificates for conventional

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Organic Expertise Centre (OEC)

• Establishment internal expertise center - named OEC - in 2010 To stimulate exchange of knowledge / experience that is widely available

within Wessanen To educate and inspire our internal / external stakeholders in organic values

• Specialists join forces and work on pan-European issues

• To legitimise our position in organic world by championing the organic case

• Focal areas will be: Training (incl. training package for newcomers)

Knowledge building by teaming up with external researchers and experts

Lobbying to promote organic food

Communication for more general awareness / knowledge of organic food

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A long and rich history

1765 - Incorporated around river De Zaan

– Adriaan Wessanen started to trade in mustard, canary and other seeds

Around 1910 introducing first consumer products such as

oatmeal and cocoa

1913 - Distinguished title Royal (99 years !)

1959 - Listed on Euronext Amsterdam

2009 - Strategic reorientation focus on organic food in Europe

2012 - To make our organic brands most desired in Europe

• 2015 - Marking 250th anniversary of Wessanen

2012 overviewRevenue

273

205

113

129

Grocery HFS IZICO ABC

EBIT before exceptionals

22,0

0,01,8

6,3

Grocery HFS IZICO ABC

FTEs (average)

434

630487

451

62

Grocery HFS IZICO ABC Corporate

Average Capital Employed

89

59

37

48

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Grocery HFS IZICO ABC Corporate28

€711mln €19mln*

2,064 €240mln

* Incl. non-allocated * Incl. intercompany sales

*

Q1 figures per segment

In € mln Revenue Normalised EBIT

Q1 13 Q1 12 Q1 13

Grocery 70.9 66.4

HFS (Health Food Stores) 52.8 53.9

IZICO 28.2 27.8

ABC 22.5 24.7

Non-allocated (1.9)* (2.2)*

Wessanen 172.5 170.6

29* Eliminations for inter-segment revenue (between Grocery and HFS)

Revenue breakdown per segment

52,853,9

30

22,5

24,7

(1.5)%

Health Food Stores

Autonomous third party revenue growth

70,9

66,4

1.7%

Grocery

Autonomous third party revenue growth

28,227,8

1.4%

IZICO

Autonomous third party revenue growth

(9.9)%

ABC

Autonomous third party revenue growth

Financials Q1 / guidance 2013

Financials Q1

• Net financing costs €(0.4) mln Q1 2012: €(0.6) mln (restated)

• Income tax expenses €(2.7) mln Q1 2012: €(0.8) mln

Guidance FY2013

• Net financing costs €(2-3) mln

• Effective tax rate around 35%

• Capex €8-10 mln

• Depreciation and amortisation €14 mln

• Non-allocated expenses (incl. corporate) €11 mln

Revised IAS 19 – impact on FY 2012 / yearend 2012

• €0.5 mln higher personnel expenses

• €1.1 mln lower net financing costs

• Equally distributed over all four quarters

• Equity (‘OCI’) €9.0 mln higher as at yearend 2012

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Royal WessanenA leading player in organic food in Europe