INTERIM RESULTSFor the 6 months ended 31 March 2018

Daemmon Reeve, Chief Executive Officer

Richard Hope, Chief Financial Officer

EXECUTIVE SUMMARY

2

• Encouraging start to new 5 year strategy

• Key geographical & product categories all performing well

• Strong growth in earnings per share – boosted by US tax changes

• Momentum continued into Q3

• Disposal of Earthoil Plantations

• Capital secured to support investment

RESULTS AT A GLANCE

3

Revenue2

Profit

Before Tax1,2

Earnings

per Share1,2

Interim

Dividend

14%

£53.6m

20%

£5.8m

30%

8.58p10%

1.60p

£37.1m

£41.4m £40.9m

£47.1m

£53.6m

£42.1m

£44.5m£47.1m

£54.2m

0

10

20

30

40

50

60

70

80

90

100

110

2014 2015 2016 2017 2018

1H 2H

Revenue £’m Profit Before Tax1 £’m

£2.8m£3.0m

£3.4m

£4.8m

£5.8m

£4.1m

£5.0m

£5.4m

£5.9m

0

1

2

3

4

5

6

7

8

9

10

11

12

2014 2015 2016 2017 2018

1H 2H1 Excludes exceptional items

2 Excludes discontinued activities

2 2 2 2

2018 HALF YEAR REVIEWINCOME STATEMENT

2018 H1

£’000

2017 H1

£’000

Change

%

Revenue 53,574 47,132 13.7%

Gross Profit 12,636 11,501

Gross Profit % 23.6% 24.4%

Administrative Expenses (6,557) (6,333)

Operating Profit 6,079 5,168 17.6%

Operating Profit % 11.3% 11.0%

Net Finance Costs (314) (378)

Profit Before Taxation & Exceptional

items5,765 4,790 20.4%

Exceptional items (212) -

Profit Before Taxation 5,553 4,790 15.9%

Taxation (962) (1,359)

Profit for the Period from continuing

operations4,591 3,431

Profit for the Period from discontinued

operations557 579

Profit for the Period 5,148 4,010 28.4%

Key Points

1. In constant currency, revenue growth of 18% following strong

growth in UK and US

2. Gross margins affected by FX

3. Admin expenses up 3.5%, 7.7% in constant currency driven by

increased headcount in UK and US to support future growth

4. Operating margin improved as result of operational leverage drop

through

5. Exceptional items relate to UK relocation

6. Effective tax rate down to 17% (was 27%) due to lower US taxes

4

2018 HALF YEAR REVIEWCASH FLOW

2018 H1

£’000

2017 H1

£’000

Operating cash flow 8,160 7,096

Net working capital (6,737) (7,158)

Taxation paid (892) (1,512)

Net cash from operating activities 531 (1,574)

Cash flow from investing activities

Investment in subsidiaries/loan notes - (1,575)

Purchase of tangible and intangible assets (2,370) (607)

Other 8 1

(1,831) (3,755)

Free cash flow (1,839) (2,181)

Cash flow from financing activities

Proceeds on issue of shares 20,833 -

Interest payable (352) (421)

Dividends paid (1,939) (2,267)

Other 2 100

18,544 (2,588)

Net decrease/(increase) in net debt 16,713 (6,343)

Effect of foreign exchange rates 6 4

Movement in net debt 16,719 (6,339)

Key Points

1. Growth in EBITDA driving cash flow growth

2. Working capital outflow of £6.7m – includes increase in trade

receivable due to strong March 2018 which is expected to unwind in

H2

3. Capex includes $2.2m on US expansion and related costs

4. Equity placing raised net £20.8m to fund investment programme

5

2018 HALF YEAR REVIEWBALANCE SHEET

As at 31

March

2018

As at 30

September

2017

Goodwill - £2.7m

Fixed Assets £16.1m £15.4m

Inventories £39.0m £42.9m

Debtors £25.3m £20.0m

Creditors (£19.2m) (£17.8m)

Working Capital £45.1m £45.1m

Taxation (£0.1m) (£0.7m)

Net cash / (Debt) £6.5m (£10.2m)

Pension deficit (£6.8m) (£5.8m)

Other net liabilities £0.1m -

Assets held for sale £8.5m -

Shareholders’ Funds £69.4m £46.5m

Key Points

1. On like-for-like basis adjusting for Earthoil, inventory up £1.5m

2. Net cash at period end in advance of capex investment programme

3. Earthoil transferred to assets held for sale, including goodwill

6

• Multi bank facilities totalling £21.8m

• Group headroom of £27.9m (Mar 2017: £16.4m)

STRATEGIC FOCUS – CORE PRODUCT AREAS

7

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Citrus Tea Sugar Reduction

% Growth in Sales – 2017 H1 v 2018 H1

Citrus Tea Sugar Reduction

STRATEGIC UPDATE

STRATEGIC FOCUS

5-year growth plan now in place, driven by citrus, sugar reduction and tea –

backing winners:

1. US expansion progressing

2. Performance culture and employee engagement strategy – pulse surveys and tailored training

3. Winning business in successful products – strong progress with existing customers

4. Focused R&D delivering creative solutions for customers

5. Strategic growth markets:

▪ China progress - winning market share and growing opportunity pipeline

▪ India progressing with citrus key and sugar reduction beginning

▪ US – premium beverages demanding edge in authenticity, the sweet spot of Treatt’s portfolio

9

SALE OF EARTHOIL PLANTATIONS

• Fair trade and organic cosmetic ingredients business

• Identified as non-core to group activities

• Consideration of £11m (subject to adjustment) receivable in cash

1. 90% on Completion;

2. Deferred payment of 10% twelve months after Completion

• Proceeds used to strengthen balance sheet, and increasing debt capacity for further growth and investment in key product categories

• Expected to be slightly earnings dilutive for current financial year ending 30 September 2018

10

US EXPANSION

New production capacity needed to meet demand

and support future growth

Progressing as planned for completion

December 2018

11

Breakdown of Costs*

Land and Buildings US$8.8m

Plant and Machinery US$2.9m

Contingency US$2.3m

Total budget US$14.0m

* Estimate

UK RELOCATION

Enhanced capabilities:

Step-change in capacity

Improved client interaction

Operational efficiencies

Project cost £35m

Full planning permission granted

early 2018

Main contractor to be appointed and

construction to commence mid

2018

Target return on investment of 10-15% in medium

term

12

CURRENT TRADING & OUTLOOK

13

• Encouraging start to Q3

• Further growth in key product categories citrus, sugar reduction and tea expected

• Capital investment programme on track

• Board confident that the Group will meet its expectations for the financial year ending 30 September 2018

APPENDIX

PRODUCT CATEGORIES

Citrus Sugar Reduction

Tea Other

• Treatt’s largest product category

• Both natural and synthetic offerings create significant market opportunities

• Building on know-how and technical expertise for customer benefit

• Natural flavour of sugar – without carbs or calories

• Sugar tax / obesity agenda leading to strong customer demand and growth in size of market

• New business wins with global FMCGs

• Natural tea flavours

• Continued growth in the ready-to-drink tea market

– 2011-16 grew by > 40%

• Noteworthy wins at multiple FMCGs and F&F Houses

• Synthetic and natural flavours, e.g. natural cucumber, aroma chemicals

• Other essential oils

• Cosmetic ingredients

• Potential new growth areas e.g. coffee

15

INTERIM/FINAL EARNINGS PER SHARE1

2014 - 2018

3.88p4.21p

4.72p

6.58p

8.58p

6.07p

7.51p

8.12p

9.83p

0

2

4

6

8

10

12

14

16

18

2014 2015 2016 2017 2018

1H 2H

16

“Consistent Profitable Growth”

1 Excludes exceptional items

2 Excludes discontinued activities

2 2

INTERIM/FINAL DIVIDEND2008 - 2018

0.72p 0.74p0.82p

0.96p 1.02p1.10p

1.24p 1.28p 1.35p1.45p

1.60p

1.52p1.66p

1.78p

1.94p

2.08p

2.60p2.60p

2.76p

3.00p

3.35p

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1H 2H

17

“Progressive Dividend Policy”