Greenyard : HY Report 2022-2023

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Content

Message from the co-CEOs	5
Key financial information	8
Sales and adjusted EBITDA per operating segment	10
Information for shareholders	11
Condensed consolidated interim financial statements	13
Consolidated income statement	13
Consolidated statement of comprehensive income	14
Consolidated statement of financial position	15
Consolidated statement of changes in equity	16
Consolidated statement of cash flows	17
Notes to the consolidated interim financial statements	19
1. General information	19
2. Significant accounting policies	19
2.1. Declaration of conformity	19
2.2. Seasonality	19
2.3. Changes in accounting policies and disclosures	20
3. Segment information	21
4. Notes to the consolidated income statement	22
4.1. Operating expenses	22
4.2. Other operating income/expense	23
4.3. Net finance income/cost	23
4.4. Income tax expense/income	24

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5. Notes to the consolidated statement of financial position	25
5.1. Property, plant & equipment	25
5.2. Goodwill	25
5.3. Other intangible assets	25
5.4. Right-of-use assets	25
5.5. Other financial assets and liabilities	26
5.6. Shared based compensation	26
5.7. Pension and other employee benefit liabilities	26
5.8. Interest-bearing loans	27
6. Other elements	29
6.1. Subsidiaries and changes in consolidation scope	29
6.2. Off-balance sheet commitments	29
6.3. Contingent liabilities	29
6.4. Related parties	29
6.5. Risk management description	30
6.6. Litigations and claims	30
6.7. Events after balance sheet date	30
Statement of responsible persons	33
Statutory auditor's report on the consolidated financial statements	35
Financial definitions	39

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Message from the co-CEOs

Unprecedented times call for a unique approach: close collaborations in the chain as catalyst for growth

Dear customers, growers, business partners, colleagues, and shareholders,

We are living in unprecedented times. The global macroeconomic reality of today was impossible to predict, and it will remain unpredictable for the months to come. And yet, there is an important window of opportunity. In the current macro-economic turmoil, the relevance of Greenyard's unique operating model is higher than ever. Our relentless focus on long-term and integrated relations with both growers and customers results in agility, stability, and certainty - all at once. And this brings value to the entire food value chain, especially in these uncertain times.

Our power of connection in the chain enabled us to deliver solid results, and to strengthen our market position during the first six months of our financial year 22/23. Total sales increased by 7,3% on a like-for-like basis versus last year. We held on to our profitability with an Adjusted EBITDA of

• 80,4m and we recorded a positive net result of € 7,1m. At the same time, we further decreased our Net Debt by another € 9,7m to € 328,4m for the comparable period of last year. This resulted in a leverage ratio of 2,7x, compared to 2,8x in the same period last year.

This performance clearly shows that we have solid foundations, not only to overcome the extreme external disruptions of last year but also to remain focused on the road ahead. The entire sector is confronted with lower market volumes, unseen inflation rates and higher energy, transport, and labor costs. Still, thanks to our unique position in the food value chain, we can successfully navigate these circumstances.

Integrated Customer and Grower Relations are a catalyst for our strategy. They are based on long-term, transparent collaborations. These relationships bring the ability to find solutions in difficult circumstances. They unburden the customer from managing the increased complexity in the fruit and vegetable category, particularly in today's markets. With the current state of the global economy,

logically, there is a growing appetite for this way of working. By strengthening our position as a market leader today, we are creating a powerful basis for fast acceleration once a "new normal" has found its way to the market. For us, and for our customers.

At the same time, we constantly look how we can further increase efficiencies and build even stronger operations. Over the past period, we continued to invest in systems, additional capacity, and new technologies. Amongst others, we took the next steps in the roll-out of our ERP- system and we expanded the banana ripening capacity in Fresh. In Long Fresh we committed to a brand-new optical sorting machine and the go-live of a new freezing tunnel.

Another important milestone in the first half year, was the refinancing of our existing bank debt in September. By anticipating interest rate hikes from policy makers and possible credit tightening, the new € 420m bank loan provides financial stability for the coming 5 years. In addition, we completed the real estate transaction of our facilities in Bree, allowing us to reduce our bank debt and creating additional room for further growth and the deployment of our strategic plans. Thanks to these operations, we have secured ample liquidity and we are prepared for the future.

Amidst the economic and geo-political climate today, there is great momentum to further accelerate the transition to healthier lifestyles. Today, there still is a large underconsumption of fruit and vegetables, despite these products being among the cheapest in the food category. This is incredible when you imagine the complexity of a fruit and vegetable assortment. On top of that, we see that price increases in stores for fruit and vegetables are still far from the average inflation rates. So simply said: fruit and vegetables are healthy, sustainable, and not expensive. It makes them one of the most accessible and affordable food categories, all year round.