1 BERENTZEN-GRUPPE AG | Transformation towards sustainable ...

1 Company Presentation | August 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth


Transformation towards sustainable profitable growthFebruary 2021


Juicers

Who we areA German beverage specialist with a diversified portfolio and a broad segment coverage

Core strategic brands:

Domestic traditional brands:

Private Label

• Premium• Medium

• Standard discountconcepts

Spirits

Brands

Non-Alcoholic Beverages (NABV)

Oranges + Bottles

Frutas Naturales

Fresh Juice Systems

Franchise Business

HoReCa only

Growth potential Cash cows Strategic non core

Total revenues 2020: EURm 154,6

Brands

contract bottling


CONSCIOUSNESS NATURALITY

DISCOVERY VARIETY CRAFTED

TRADE CONCENTRATION MICROBRANDS E-COMMERCE

DIGITALISATION

What is driving our markets?The world is getting more complex and consumer behaviour is changing substantially


Our assets to respondStrong fundament to withstand COVID-19 and quickly return to sustainable growth

▪ Broad segment coverage for diversifiedtarget groups

▪ Trusting relationship to retailers

▪ Fast reaction to grap emerging businessopportunities

▪ “Can-do“ attitude driving speed to market

We turn beverage ideas into business!

The Berentzen Group is on its way to an integrated, powerful beverage incubator that transformsinnovative ideas into sustainable business.


Our transformation agendaWe strive for profitable growth through innovation and commercial excellence

1. Branded Spirits ▪ Focus on core brands Berentzen and Puschkin (innovation, valorisation,

execution)

▪ Capitalizing on upcoming consumer trends through speed to marketinnovations

2. Private Label Spirits ▪ Capitalizing on PL premiumisation trend through innovation and portfolio

extension

▪ Building long-term strategic partnerships with strong retailers

3. Non-Alcoholic Beverages▪ Acceleration of Mio Mio through ambitious distribution extension

(Germany / +)

▪ Total segment optimisation through radical profitability and efficiencyfocus

4. Fresh Juice Systems ▪ Commercial excellence and internationalisation through strong

distributor network

▪ Defending quality leadership through technical machine innovations

5. Group ▪ Joint sales organisation spirit brands and non-alcoholic beverages

▪ Improved structure and raised efficiency in supply chain and logistics


Segment strategy spiritsFrom a traditional, stagnating product portfolio to modern, value driven innovations

Status quo: “classic core” with limited growth Future: “revalued core” + new growth fields

▪ Biggest spirits producer in Germany* with no. 1 position in fruityspirits (Berentzen) and no. 4 position in vodka (Puschkin)**

▪ Export business via distributors covering numerous international markets

▪ Supply chain cost leadership through long-term experience in private label manufacturing

▪ Acceleration of international market entries trough combination approach of branded and PL business.

* Own research by external data** Source: The Nielsen Company 01-12/2019

+


Success stories: SpiritsProven success of profitable growth strategy: innovation & premiumisation

1. Conquering the dynamic liqueur market through productand format innovations of Berentzen and Puschkin ▪ Berentzen Winter Creamers at +39% in 2019*

▪ Puschkin liqueur range at +21% in 2019*

▪ Berentzen Summer Creamers and Puschkin Party Shooter hit market firsttime

2. Seizing opportunities in premium trend categrories▪ Premium rum: Tres Paises grew at +16% in 2019*

▪ Gin: Norden Dry Gin grew at +16% in 2019*

3. Leveraging premiumisation trend in private label business▪ Customized premium concepts grew at +39% in 2019**

▪ Entering the growing Ready-to-Drink-market form 0 to >1.5m units in 2019**

Spirits

* Source: IRI** Source: internal data


New Story: Takeover of premium cider brand GoldkehlchenEntering into a new promising market segment

1. In September 2020, Berentzen group announced it is broadening its product portfolio by taking over Austrian premium cider brand Goldkehlchen.

2. The transaction is in line with the acquisition strategy to take over small, innovative ‘seedling’ companies in order to drive them forward.

3. With cider as new beverage segment we advance our mission as a broad-based beverages group to bring innovative and modern ideas for drinks to the markets.

Goldkehlchen has a clear growth potential as modern cider and other ready-to-drink concepts are currently experiencing significant growth on the German, Austrian and the international markets alike.

14.817.7

20.8

June 2018 June 2019 June 2020

+19+17

German Market development of modern cider in Mio. 0.75 l*

*Source: Information Resources GmbH (Food Retailing >= 200sm + Beverage Pick-Up Markets excl. Aldi / Lidl / Norma)

▪ Modern and high quality cider concept

▪ Natural product made of regional raw materials from Austria

▪ Vegan; without artificial ingredients, colorings or sugar

▪ Start for the German market with three flavours: apple, apple-pear and cassis in deposit-free glass bottles

The transaction The product and its potential

The market and its potential


Segment strategy non-alcoholic beveragesFrom a regional contract filler to a value driven, national brand champion

Status quo: limited offer focused on northern GER Future: extended, valorised portfolio in Germany /+

▪ National distribution of Mio Mio on its way, sales volume continues to grow with significant double-digit growth rates

▪ Well established water brands with significant market share in home regions

▪ Franchisee for Sinalco and contract bottler for Pepsi

▪ Continued national and selected European rollout of Mio Mio and leveraging growth momentum via new flavours

▪ Germany-wide offering of further lifestyle innovations (i.e. naturalherbal limonade “Kräuterbraut”)

▪ Decreasing dependence on franchising and contract bottling turningit increasingly into a “cherry on the cake business”


1. Dynamic growth of MioMio continues

▪ Sales up by 33% in 2019, double-digit growth expected in 2020 despiteCOVID-19

▪ New flavour “Mate Zero” satisfies current customer requirements

2. New and modern innovation Kräuterbraut hit the market▪ „Newcomer of the year 2019“, voted by German „Getränkezeitung“

▪ Convincing rate of sale and consumer feedback, distribution expansion iskey

3. Regional brands with high credibility and growthmomentum▪ Emslandquelle at +3.4% sales growth in 2019

▪ Strong consumer promise: „sustainable ambassador of the region“ (climateneutrality for mineral waters implemented)

Success stories: non-alcoholic beveragesGrowth strategy with proven track record: innovation and commercial excellence

Non-alcoholic beverages


Segment strategy fresh juice systemsFrom a volatile start-up to a commercially robust, international innovation leader

Status quo: local start-up with int'l spot business Future: commercially solid, int'l innovation leader

▪ “One- stop-shop-system“ for juicers, untreated oranges and bottles in home markets Germany and Austria

▪ Market leading pressing technology ensuring best juice quality and taste

▪ Production efficiency through outsourced supply chain for fruit juicepresses

▪ Increased investments to drive innovation leadership by new machinegeneration of smart juicers (easy cleaning, digital connectivity)

▪ Expansion of international distributor network to enter new markets

▪ Building-up further marketing and sales capabilities to drivecommercial excellence and co-piloting of distributors


Success stories: fresh juice systemsResharping innovation leadership and distinct quality superiority

1. Juicers▪ New juicers with easy-cleaning-system and digital solutions

▪ New Eco-Line: manual juicing with green footprint and new placementoccasions (no electricity)

▪ Further game-changing innovations in the development pipeline

2. Fruits▪ Unique expertise in 365 days delivery of untreated, high quality premium

oranges („Frutas Naturales“)

▪ Sustainable competitive advantage through offering a one-stop-shop ecosystem (juicers, oranges, bottles) due to specialized expertise in orange procurement

3. Bottles▪ New recycled PET bottles (rPET) proving sustainability aspiration

▪ High flexibility in format and size, even with customized brandingsolutions

Fresh juice systems


Innovation and valorisation are at the core of our strategyFueling sustainable growth through relevant and inspiring beverage innovations

Non-Alcoholic Beverages Spirits Fresh Juice Systems


Financial highlights


Financial highlights 2018 – 2020

Revenues (EURm) EBIT (EURm)

2019

201820202018

Dividend YieldPayout Ratio

▪ Dividend for 2019: EUR 0.28 in line with general dividend policy: at least 50% of consolidated profit to be distributed as a dividend

53.0%

2020

2019

> 4.1%

+ 3.2%

2019

- 7.7%

2019

+ 0.1%- 7.7%


Assets and liabilities as per 12/19Solid structured balance sheet

▪ Balance Sheet structure mostly unchanged – moderate increase of Balance Sheet total

▪ Intangible assets represents only 7,6% of total assets.

▪ Increased position of cash and cash equivalents

▪ Spirit tax liabilities are always higher at Y/E compared to the rest of the year due to key month December being included

▪ Equity is up to EUR 49.2m.

▪ Equity ratio of 32.4% (32.7%).

in EURm 12/31/2018 12/31/2019

ASSETS

Intangible assets 12.1 11.6

Property, plant and equipment 45.8 45.4

Investment property 0.7 0.7

Right of use 0.0 1.3

Other financial assets 0.8 0.7

Total non-current assets 59.5 59.7

Inventories 39.9 40.6

Current trade receivable 16.4 14.8

Cash and cash equivalents 15.8 22.7

Other current financial and non-financial assets 13.4 13.9

Total current assets 85.5 91.9

TOTAL ASSETS 145.0 151.6

in EURm 12/31/2018 12/31/2019

LIABILITIES

Non-current financial liabilities 7.1 7.9

Other non-current liabilities 11.9 11.6

Total non-current liabilities 19.0 19.5

Alcohol tax liabilities 42.3 43.6

Current financial liabilities 1.1 2.3

Trade payables and other liabilities 35.1 37.0

Total current liabilities 78.5 82.9

Shareholders´ equity 47.4 49.2

TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES 144.9 151.6


Corporate Social Responsibility –Committed to sustainability


Sustainability highlightsTaking responsibility is an obligation for a future-oriented company

Planet ProductsPeople

7.166 5.972

Corporate Carbon Footprint (tCO2e)

2018 2019

*www.climatepartner.com/13574-1909-1001

*www.climatepartner.com/13574-1912-1002

http://www.climatepartner.com/13574-1909-1001

http://www.climatepartner.com/13574-1912-1002


Ambitious sustainability strategy of the Berentzen Group0 – 100 – 100


Sustainability strategy of the Berentzen Group


Materiality Matrix and SDGs as sound basis for our areas of activitySustainability approach at Berentzen Group (I)

high very high

hig

hve

ryh

igh

Rel

avan

ce f

or

stak

eho

ler

Impacts of Berentzen Group

Sustainable products and packaging

Water

Responsible procurement

Resourcemanagement

Compliance and transparency

Employerattractiveness

and responsibility


Sustainability approach at Berentzen Group (II) Our value added chain

For a detailled input-output overview, please see page 30 and following of our sustainabiliy report.

Raw materials and energy production

Manufacture of components and preliminary products

Production of beverage syrup/production of premixture

Production of finished product

Bottling of finished products

Logistics

Trade/consumption

Disposal/recycling or reusue

ProductionAdministrationSales

Syst

em

bo

un

dar

y o

f B

ere

ntz

en G

rou

p

Transportation

Waste water

Waste heat

Waste

Products

Exhaust air

Emissions

Noise

Packaging

Auxiliarymaterials

Operationmaterials

Raw materials

Energy

Water

Heat

CratesEURO palletsBottles


Clear committment to renewable energyWe already use 100% renewable energy in our production processes

For a detailled overview of our energy consumption at Group level, see page 37 and following of our sustainabiliy report.


Corporate Carbon FootprintConsiderable reductions already realized according to Greenhouse Gas Protocol criteria

See also page 40 of our sustainabiliy report.

2017 2018 2019

Emissions from heating including upstream chain Scope 3 [t CO2e] 4,271 5,286 4,719

Emissions from electricity including upstream chain Scope 3 [t CO2e] 1,416 503 437

Emissions from transportation including upstream chain Scope 3 [t CO2e] 900 1,093 816

Coolant [t CO2e] - 284 0

Total emissions [t CO2e] 6,587 7,166 5,972

Specific emissions [kg CO2e/m3] 28.92 31.34 26.72

Comparison to last year [%] 8.36% -14.75%

26 August 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth

At a glance: Why to invest?

27 August 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth

Investment highlights

1. Robust business model and high financialstability even in difficult times

2. Strong diversified portfolio and broadsegment coverage

3. Value creation through portfoliooptimisation and trading-up innovations

4. Local market focus with leading marketpositions and speed to market capabilities

5. Solid financial basis to fund future growthstrategy

6. Return on capital through shareholder-friendly dividend policy


Additional information


The Berentzen-Gruppe AGShare data as of January 2021

▪ Market capitalisation: ca. EUR 64m (31.12.2019)

▪ ISIN: DE0005201602

▪ Bloomberg: BEZ GR/Reuters: BEZ.DE

▪ 9.6m common shares

▪ EUR 24.6m share capital

Treasury Shares2,1% Monolith (NL)

4,9% Lazard Frères Gestion (FR)5,1%

MainFirst (LU)8,5%

Private and institutional shareholders (< 3.0 %)79,4%

> 3,0 %: Pursuant to Notificationof Major Holdings according toWpHG (German Securities Trading Act)


Forecast 2021COVID-19 assumptions: similar conditions on the whole as in 2020

Valuation numbers 2020Min

2021EMax

2021E 2021E 2021E 2021E

Revenues EURm 154.6 152.0 158.0 156.0 153 155.0

EBITDA EURm 14.1 13.0 15.0 14.2 14 14.4

EBITDA margin % 9.1 8.6 9.5 9.1 9.4 9.3

EBIT EURm 5.2 4.0 6.0 5.3 5 5.5

EBIT margin % 3.4 2.6 3.8 3.4 3.6 3.6

Net income EURm 2.6 2.0 2.8

Net income margin % 1.7 1.3 1.8

Price target (in EUR) 8.00 6.90 8.00

Last Update 02/2021 02/2021 02/2021

Research reports available under:

https://www.berentzen-gruppe.de/en/investors/share

▪ Comparable level of revenues and earnings as in 2020 expected

https://www.berentzen-gruppe.de/en/investors/share


The Berentzen-Gruppe AGManagement

Executive Board Supervisory Board

Oliver SchwegmannCEO

▪ Member of the board since 2017

▪ Responsible for Sales, Marketing,

Production, Logistics, R&D

▪ Managing Director at L‘Oreal

Switzerland and Austria, Corporate VicePresident Marketing & CategoryManagement at Hero AG, Marketing

Head at Mars GmbH Germany

▪ Started his professional career at August

Storck KG

Ralf BrühöfnerCFO

▪ Member of the board since 2007

▪ Responsible for Finance, Controlling, HR,

IT, Investor Relations, Corporate Communications, CSR, Law

▪ Senior Manager/Head of Group Accounting and Controlling in publiclisted companies as well as in privately

owned businesses (Balcke Dürr AG, Hermann Heye KG)

▪ Started his career at PricewaterhouseCoopers

Uwe BergheimChairman

▪ Chairman of the supervisory board since2018

▪ Self-employed business consultant

▪ Member of the board Falke KGaA

▪ Former Member of the board E-Plus Mobilfunk GmbH & Co. KG


The Berentzen-Gruppe AGFacilities & facts

▪ HQs of Berentzen Group and business units (a) brandedspirits, (a) non alcoholicbeverages (NABVs)

▪ Production of NABVs

▪ Mineral spring, 3 filling lines

▪ Glass / PET / Container

▪ Capacity 72 million litres

▪ Premium craft distillery

Minden

Haselünne Grüneberg

Linz

Istanbul

▪ Headquarter for private label busineness (spririts)

▪ Production of all spirits

▪ Production capacity 123 million units

▪ 6 filling lines

▪ Warehouse in Stadthagen with 30,000 pallets

▪ Production of NABVs

▪ Mineral spring

▪ 4 filling lines

▪ PET /Glass / BIB / KEG

▪ Capacity 95 million litres

▪ Business unit Fresh Juice Systems

▪ HQ of business unit, asssembling, engineering, sales, marketing

▪ Own spirits salesorganization

▪ Established in 2012

▪ German company with morethan 250 years of tradition, based in Haselünne, Lower Saxony, listed in the General Standard of the Frankfurt Stock Exchange since 1994

▪ Broad product portfolio withwell-known spirits brands such asBerentzen and Puschkin, private-label spirits, mineral water, lemonades such as Mio Mio, fruitjuice systems (Citrocasa) as wellas a franchise for Sinalco lemonades

▪ Present in more than60 countries worldwideAUT

TR

DE


The Berentzen-Gruppe AGFinancial calendar* and contact

2021 Event

4 February Preliminary Business Figures for 2020

24 February ODDO SEYDLER Digital Small & Mid Cap Conference 2021

25 March Annual Financial Statements and Report 2020

4 May Interim Report Q1/2021

11 May Virtual General Meeting of Berentzen-Gruppe Aktiengesellschaft

17-19 May Spring Conference Equity Forum – 1 on 1 Summit online

11 August Group Half-Yearly Financial Report 2021

21 October Interim Report Q3/2021

* Conference and roadshow participations will be regulary added and updated

Contact

Thorsten SchmittHead of Corporate Communications and Investor Relations

Phone: +49 (0) 5691 502- 215Email: [email protected]: www.berentzen-gruppe.de


Disclaimer

This presentation is intended only for information purposes. It is not final.

It contains forward-looking statements. These are based on current assumptions, estimates and expectations of company management concerning future developmentsrelated to the company. They are associated with risks and uncertainty, and have not beenindependently verified. Such forward-looking statements may include terms including but not limited to “future potential,” “perspective” or “goal.” These refer only to non-bindingpossibilities and potentials in this form and estimated at this time, and not to measurableor reliable management or company key indicators, including retrospectively. Publishedmanagement and company key indicators are unaffected thereby.

These forward-looking statements are thus not suitable for evaluating the company ormaking any other economic evaluations, and in particular do not constitute a basis, recommendation, solicitation, advice or offering for investment decisions. They further do not constitute a promise or guarantee thatthe expectations described herein will prove correct.

Actual events and results may deviate substantially from the forward-looking statements, positively or negatively. Many uncertainties and the consequential risks are affected bycircumstances that the Berentzen-Gruppe Aktiengesellschaft has no control or influenceover, and that cannot be assessed with certainty. These include changing marketconditions and their economic developments and consequences, changes in the financialmarkets and currency rates, actions by other market participants and competitors, changesin laws and political decisions by governments and government agencies.

Where not otherwise mandated by law, the Berentzen-Gruppe Aktiengesell-schaft acceptsno obligation with respect to these forward-looking statements to make corrections orchanges due to circumstances that occur after the date of this presentation; the right tomake such changes is nevertheless reserved. No guarantee is made, or liability accepted, implicitly or explicitly, for the timeliness, correctness or completeness of the forward-looking statements herein contained.

Brands and other trademarks used in this presentation and protected by third parties aresubject to the provisions of the respective trademark laws and the rights of the registered owners thereof. Copyright and reproduction rights for this presentation and for brands andother trademarks of the -Berentzen-Gruppe Aktiengesellschaft are reserved, where not otherwise -explicitly agreed.

Executive Board, Berentzen-Gruppe Aktiengesellschaft

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