JDE Peet’s provides an update on its strategic roadmap and shares preliminary results for FY22 at its strategic update meeting

GO Peets NV

PRESS RELEASE

Amsterdam, January 24, 2023

Key Highlights

• GO Peets made significant progress on it is growth and purpose–guided strategy tHat was introduced in March 2021, and which one supported and strong to adjust of quality results sinz the enterprise came into the public eye market

• The enterprise has successfully accelerated Growth in the US and emerging markets while strengthening digital capabilities and competitiveness Ctrade and single serve devices

• ESG performance by JDE Peet and Ambitions significantly increased in 2022. The company has defined the roadmap of the initiatives that will enable a new engagement for net–Zero, and built an newly integrated CO2 accounting platform to track and accelerate the delivery his ESG Goals

• The company announces thisi.e the start from a New, fullyand compostable Coffee capsule in 2023, what one enablesn uncompromising high-quality in-cup experience

• GO to Peets cconfirmedit FY 22 Results being consistent with his outlook, Offeri.e it is Outlook for the fiscal year 23 and repeati.e his middle too long term Goals

JDE Peet’s (EURONEXT: JDEP), the world’s leading pure-play coffee and tea company by revenue, is hosting its Strategic Update Meeting for institutional investors and analysts today in Amsterdam. During this event, the company provided an update on its achievements and progress against its strategic roadmap, a selection of preliminary financial results for FY22, as well as its outlook for 2023, among others.

“I am very pleased with the progress we have made since launching our updated strategy two years ago,” said Fabien Simon, CEO of JDE Peet’s. “Despite the challenging macroeconomic environment, we are delivering on our commitments to build a stronger, more productive and more inclusive company. We have maintained high quality standards for our consumers and customers, reinvested wisely in core values, rebuilt employee pride and engagement, transformed ourselves from a laggard into an ESG leader, while restoring our cost competitiveness and meeting our financial commitments . Strengthening our fundamentals, our brands and our ability to innovate improves our growth trajectory and our ability to create sustainable long-term shareholder returns and societal value.”

The story goes on

Start from a new, compostable Coffee capsule accelerate the sustainability agenda
The company will launch a fully compostable capsule in 2023 that will contribute to a circular economy. This world-first technology enables a high quality in-cup experience previously unattainable with existing compostable alternatives. This innovation will be launched in select markets throughout 2023 under L’OR, the world’s leading espresso capsule food brand.

ESG performance and ambition have been significantly increased in 2022 and a company-wide carbon accounting system has been introduced implemented to track and support a net zero future
In line with the company’s goal of unleashing the possibilities of coffee and tea to create a better future, JDE Peet’s has made significant strides on its sustainability agenda over the past two years. In addition to reducing its Scope 1 and Scope 2 greenhouse gases by 17% since 2020, one of the key achievements in 2022 was increasing responsibly sourced coffee from 30% in 2021 to 77%. In 2023, JDE Peet’s will submit its stronger and new SBTi ambitions at net zero.

Provisionally FY 22 financially Results1
At its Strategic Update Meeting, JDE Peet’s reaffirms its 2022 outlook and reports the following preliminary unaudited results for FY22:

• Revenue up 16.4% driven by organic growth of 11.3%

• Gross profit increased by 3.3%

• SG&A rose 10.6%, driven by labor media and other growth-related investments

• Adj. EBIT declined 5.9% and -9.3% organic as SG&A rose

• Adjusted EPS rose to EUR 1.91

• Free cash flow of more than EUR 1.3 billion with a net leverage of 2.65x

The Company is scheduled to release its financial statements for fiscal year 22 on February 22, 2023, which may differ slightly from the preliminary results presented in this press release.

Outlook FY 2023
The company shared the following outlook for FY23:

• Organic sales growth at the upper end of the medium-term range of 3 – 5%

• Low single-digit organic Adjusted EBIT growth on modest increase in SG&A

• A stable dividend

Middle- too long-expression Goals repeated
Mid- to long-term, JDE Peet’s continues to target 3% to 5% organic revenue growth and mid-single digit organic Adjusted EBIT growth, approximately 70% free cash flow conversion, and stable to increasing dividends over time.

Add toitional information
The event’s presentation slides can be found here and a video recording of the event, including dubbed slides, will be made available on the same website the following day.

1This press release contains certain non-IFRS financial measures and measures that are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most comparable IFRS financial measures, please refer to page 7 of the H1 22 earnings statement. Organic sales and organic adjusted EBIT are adjusted for new business ventures.

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Forward-Looking Statements
These materials contain forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 regarding the Group’s financial condition, results of operations and business. These forward-looking statements and other statements contained in these materials are matters that are not historical facts and involve predictions. There can be no assurance that such future results will be achieved. Actual events or results could differ materially due to the risks and uncertainties faced by the Group. Such risks and uncertainties could cause actual results to differ materially from the future results expressed, expressed or implied by such forward-looking statements. There are a number of factors that could affect the future operations of the Group and could cause these results to differ materially from those expressed in the forward-looking statements, including (without limitation): (a) competitive pressures and changes in consumer trends and -preferences as consumer perception of its brands; (b) fluctuations in the cost of green coffee, including premium Arabica coffee beans, tea or other raw materials, and its ability to ensure an adequate supply of high-quality or sustainable coffee and tea; (c) global and regional economic, financial, political and business conditions or other developments; (d) disruption in the Group’s manufacturing and distribution facilities; (e) its ability to successfully innovate, develop and launch new products and product enhancements and to effectively market its existing products; (f) actual or suspected non-compliance with any applicable law or regulation and legal claims or governmental investigations relating to the Group’s business; (g) difficulties related to the successful completion of acquisitions and the integration of acquired businesses; (h) the loss of management and other key employees; and (i) changes in applicable environmental laws or regulations. The forward-looking statements contained in these materials speak only as of the date of these materials. The Group undertakes no obligation (and expressly disclaims any obligation) to revise or update any forward-looking statements to reflect events or circumstances after the date of these materials or the occurrence of unanticipated events. The Group cannot guarantee that forward-looking statements will prove to be accurate and investors are cautioned not to place undue reliance on forward-looking statements. Further details of potential risks and uncertainties affecting the Group are described in the Company’s public filings with the Dutch Financial Markets Authority (Stichting Autoriteit Financiële Markten) and other disclosures.

Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Requests

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Khaled Rabbani
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Investors & Analysts
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About JDE Peets

JDE Peet’s is the world’s leading pure-play coffee and tea company, serving approximately 4,500 cups of coffee or tea per second. JDE Peet’s unleashes the possibilities of coffee and tea in more than 100 markets with a portfolio of over 50 brands including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts, OldTown, Super, Pickwick and Moccona. In 2021, JDE Peet’s had total sales of EUR 7 billion and employed more than 19,000 people worldwide. Read more about our journey to coffee and tea for every cup at www.jdepeets.com.

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