Analyst presentation 2018/19

Year ended 31 March 2019

Disclaimer

DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Lucas Bols’ management and
information currently available to the company. Lucas Bols cautions that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause actual
performance and position to differ materially from these statements. Lucas Bols disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or
circumstances, except as required by law.

Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown
as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them.

2
FY 2018/19

1. Lucas Bols at a glance

2. Operational highlights
3. Financials
4. Outlook

3
Lucas Bols at a glance

13.4%
18.5%
20.0% 46.7%
22.7%

19.9%

Revenue EBIT*
€m €m

4
Global brands delivering on strategic target with revenue
growth of 3.5%

13.4%
18.5%
20.0% 46.7%
22.7%

19.9%

Revenue EBIT*
€m €m

5
More than half of the revenue from outside of Western Europe
Global revenue split reflects strong growth in the US

6
Highlights FY 2018/19 - Route to market strengthened, credit
facility improved and Avandis integration completed
Revenue Revenue of € 92.5 million, an increase of 1.2% compared to last year (H2: +2.9%)

The global brands reported revenue growth of 3.5%, mainly driven by strong growth in the US, the UK and
Brand
China, while the decline in revenue of the regional brands moderated to 5.9% due to improved trends in
performance
the second half of the year (H2: global brands +4.2%, regional brands -0.9%)

North America showed strong double-digit growth, driven by 20% revenue growth in the US, while Western
Regional
Europe saw revenue decline by 3.9%. Asia-Pacific was in line with last year while Emerging Markets
performance
returned to growth on the back of a good performance in the second half year

The overall gross margin was 59.2% (down 160 bps) as a result of geographic mix with higher shipments
Gross margin
to lower margin markets and the introduction of Nuvo

Normalised EBIT amounted to € 20.8 million, a decrease of 7.6% as a result of the lower gross margin.
EBIT
Currencies had a € 1.1 million negative impact on EBIT

Net Profit Normalised net profit came in at € 12.9 million; reported net profit amounted to € 16.6 million

Proposed final dividend of € 0.25 per share, putting total full-year dividend at € 0.60 per share, equal to last
Dividend
year

*The numbers presented on this slide are pre-IFRS and the comparisons are on an organic basis, i.e. at constant currencies and excluding one off items
7
 FY 2018/19

1. Lucas Bols at a glance

2. Operational highlights
3. Financials
4. Outlook

8
Clear strategy to capture the growth in the global cocktail market
Mission Lucas Bols

We create great cocktail experiences around the world.

Strategic framework Lucas Bols

Lead the Leverage

Build the Accelerate global
development of operational
brand equity brand growth
the cocktail market excellence

• To strengthen and grow our global brands in the international cocktail market, aiming for an
average annual revenue growth of 3-4%
• To maintain the competitiveness of our regional brands in regional and local markets

9
Strengthening our route to market by substantial number of
new and renewed contracts with existing and new partners

An important number of contract renewals, including in:

• China, South Korea, Hong Kong and Europe Travel Retail with the Edrington Group
• Japan with Asahi
• Australia and New Zealand with Beam Suntory
• Also in the UK, Ireland, Switzerland and Portugal contracts were renewed
• In Scandinavia and Germany the brands were consolidated with one distributor

Contracts with new distributors include:

• In Spain the portfolio was combined with one new distributor, focused on the on-trade
• In Canada contracts were signed with two new distributors

10
Leading the development of the cocktail market

Educating and inspiring the bartender community with the Bols Bartending Academy

• Bols engages with the international bartender community to create new drinks and experiences
for their customers with its wide variety of products and flavours.
• The Bols Bartending Academy in Amsterdam and On Tour is important in educating and
inspiring bartenders. It strengthens the role of Lucas Bols as a leading authority on cocktails.
• Bols Business Class events were held in various locations in 2018/19. In Poland the event was
live-streamed globally, reaching bar owners and bartenders on a much broader scale.
• The 10th addition of Bols around the World, this year bar teams will compete to become the
world’s Best Bar team with a big finale in Amsterdam in June 2019.

Create innovative drink strategies and act on upcoming trends around the world

• Lower alcohol trend: we have created a range of low-alcohol cocktails based on the Bols
Liqueurs range, like the Bols Waterlemon and the Bols Cucumber Tonic. Also Passoã has a
great tasting low alcohol alternative with Passoã Fresh.
• Less sweet trend: introduction of the Bols Pink Fizz, made with Bols Pink Grapefruit liqueur.
• The Negroni trend: our own signature cocktail, the Bols Red Light Negroni made with Bols
Genever, the Original Spirit of Amsterdam.

11
Building the Bols brand further by inspiring bartender & bar
owner events and signature drink strategies
The Bols brand with its distinct focus on the bartending community is clearly one of the leading brands in the global cocktail market.
Key focus on a number of drink strategies like Bols Low Alcohol Cocktails, Bols Sprizz and our Add flavor to your margarita program.

Revenue of the Bols Liqueurs range showed a mixed performance

• Continued growth in the US and accelerated growth in China and South Korea
• A decline in markets such as Japan and Germany

The focus for Bols Genever remains on key US cities

• Activation and expansion of the signature cocktail, the Red Light Negroni

Bols Vodka
• Showing continued growth in the Netherlands; fierce price competition is still negatively impacting the brand in Canada

12
On-trend activations and social media programs drive
awareness and growth of Italian Liqueurs and Damrak Gin
Italian Liqueurs returned to growth, driven by both Galliano and Vaccari

The Galliano range including Ristretto and L’Aperitivo, is fully on-trend

• Successful social media campaign in combination with expansion of distribution for Galliano
L’Aperitivo and Ristretto in the US
• The popularity of the Galliano Hot Shot is clearly growing in Scandinavia

Vaccari showed growth based on the successful expansion of distribution to new markets
• The new label design, better reflecting Vaccari’s authenticity, was successfully rolled out

Damrak Gin showed double-digit growth in both the Netherlands and the US
• The ongoing Global Gin Tonic trend supports growth of Damrak Gin, distilled in the heart of
Amsterdam and with it’s preferred citrus forward flavor profile
• The social media campaign ‘Ride like an Amsterdammer’ reached over 150,000 consumers in the US
• Damrak Gin was launched in South Korea and was also listed at the Formula 1 Singapore Grand Prix

13
Passoã and Nuvo contributed to the accelerated growth
in the US
Passoã performed well, with mid-single-digit revenue growth mainly driven by growth in
the UK, the US and the Netherlands
• Driven by distribution expansion to 45 states in the US and growth in the UK and the
Netherlands
• Menu listings at a growing number of on-trade national and regional chains and first retail
listings in the US
• Puerto Rico recovered and also contributed to growth
• Global distribution was expanded to over 50 countries
• The Passoã packaging was renewed with an upgraded design showcasing the natural passion
fruit that forms the base of the liqueur
• Accelerating growth with the signature cocktail, the Passoã Pornstar Martini and tapping into
the trend of low alcohol cocktails with Passoã Fresh

Nuvo is successfully launched in the US

• The brand had to be rebuilt from scratch from production to distribution
• Initial focus on 10 states, targeting the Latin community
• A full-blown social media campaign, featuring a number of Latin artists,
resulted in over 300 million views
• First cases shipped to South America

14
Regional brands: Henkes in Africa back on track
Important brand activations Dutch genever portfolio
Henkes
• Temporary import restrictions into Togo and Benin impacted Henkes revenue in the first half. After the restrictions were lifted in
the second half the Henkes business normalised again

Dutch genever portfolio

• Revenue Dutch domestic genever/vieux portfolio was down in the first half year as a result of the declining market, although with
focused support and activations the trend improved in the second half of the year
• Two important brand activations in the second half of the year, targeting new consumer groups to gradually compensate for the
decline in the traditional young genever and vieux segment:
• The relaunch of the Dutch Bols genevers with ‘BOLS komt met een biertje’
• A restyling of the Bokma packaging and launch of Bokma 5-year-old Bourbon Cask

15
Strong performance US and China

Strong growth further strengthened market position in the US

• More than 20% growth in the US compared to last year
• Mainly driven by Passoã, Damrak Gin and the introduction of Nuvo
• Bols Liqueurs achieved low single-digit growth in a stable market

Positive market trends translated into significant growth in China

• Accelerated revenue and profit growth for Bols Liqueurs in China,
outperforming the market
• Bols Liqueurs are in the top 3 of the liqueurs market in China
• The cocktail market in China is clearly developing with more and more
modern outlets popping up.

16
Modernised headquarters supporting new way of working

At Lucas Bols we believe that strong brands are built by

strong, healthy and motivated people. This means that
our top priority is to provide a culture of vitality and a
dynamic working environment.

• We have translated our new way of working principles into

the architecture and interior design of our new office.
• A flexible and agile way of working, with the latest
communication technology facilitating seamless
cooperation around the world.
• An inspiring and stimulating working environment for
employees and young talent, fully equipped to conquer the
world with a small team.
• The new office makes efficient use of space and is fit for
growth.

17
Improved credit facility and successful integration Avandis

New credit facility at more favourable terms

• In the third quarter of the 2018/19 financial year Lucas Bols entered into a new € 130 million syndicated credit facility agreement
• Annual interest costs to be reduced by around € 0.4 million
• Leverage ratio covenant improved from 3.0x to 4.0x
• Increased operational flexibility to support the expected development of the business

Strengthening of Avandis through integration of Distillery Cooymans

• Operations of former Distillery Cooymans fully integrated into the Avandis operations in Zoetermeer
• All operational activities in Tilburg were terminated in December 2018 and the building was sold for
an attractive price in March 2019
• Ongoing modernisation of the Zoetermeer plant is supported, including the addition of a new can line
• Creating a leading North European spirits blending and bottling plant, safeguarding the production of
Lucas Bols products for years to come

18
 FY 2018/19

1. Lucas Bols at a glance

2. Operational highlights
3. Financials
4. Outlook

19
Revenue up 1.2%
Reported (* €mil)
FY 2018/19* FY 2017/18 Highlights

Revenue 92,5 92,2

Cost of sales -37,8 -35,1
Revenue amounted to € 92.5 million, up 1.2% up versus last year at constant
GROSS PROFIT 54,7 57,1 currencies.
Gross margin % 59,2% 62,0%

D&A expenses -36,1 -34,5 Organically gross margin declined by 160 bps as a result of the geographical
% of revenues -39,0% -37,4%
OPERATING PROFIT 18,6 22,6 mix and the introduction of Nuvo.
Operating margin % 20,1% 24,6%

Share of profit of JVs, net of tax 1,0 1,0 Normalised EBIT came in at € 20.8 million (€ 23.6 million in 2017/18), a
EBIT 19,6 23,6
EBIT margin % 21,2% 25,6%
decrease of 7.6% at constant currencies as a result of the lower gross margin.
Currencies had a negative impact of € 1.1 million on EBIT.
Finance costs -3,7 -3,5
PROFIT BEFORE TAX 15,9 20,1
The normalised EBIT margin came in at 22.5% compared to 25.6% in 2017/18.
Income tax 0,7 0,3
PROFIT FOR THE PERIOD 16,6 20,4

Earnings per share € 1,33 € 1,64

* Excluding the impact of IFRS 15 and 16

Organic growth: at constant currencies, excluding one-off items

20
Global brands up 3.5%
Revenue development (in €m)

+0.3% Group revenue structure

(FY 2018/19)

-1.3

2.4

-0.8
92.5 23%
92.2

77%

Global brands Regional brands

FY 2018/19* FY 2017/18 Reported Organic

Revenue (* €m)
growth % growth %

Global brands 71,6 69,9 2,5% 3,5%

Regional brands 20,9 22,3 -6,4% -5,9%
Total 92,5 92,2 0,3% 1,2%
FY 2017/18 Δ Global Brands Δ Regional Brands Δ FX FY 2018/19

44.5% 59.2%
62.0% 63.4%
* Excluding the impact of IFRS 15 and 16
Organic growth: at constant currencies, excluding one-off items
Reported gross margin

21
Revenue by region
Revenue development at constant currencies (in €m)

Western Europe
0.6 Western
-0.8
92.2
92.5 • Revenue down 3.9% organically Europe
• For Global brands the UK and the Netherlands
2.4
-1.9 achieved strong growth off-set by challenging
retail environment in France, Belgium and
-0.1
Germany
• Regional brands were also impacted by 49.6%
challenging retail markets in the Benelux and
France
FY Δ Western Δ Asia- Δ North Δ Δ FX FY • Domestic genever/vieux portfolio trends returned
2017/18 Europe Pacific America Emerging 2018/19 to normal levels in H2
Markets

Asia-Pacific Asia-Pacific

• At constant currencies revenue was in line with

FY 2018/19* FY 2017/18 Reported Organic
Revenue (* €m)
growth % growth % last year

Western Europe 45,9 48,0 -4,4% -3,9%

• Mainly driven by accelerated growth in China
Asia - Pacific 15,3 16,2 -5,7% -0,4%
North America 19,5 16,6 17,2% 15,0% • Japan is showing a decline due to challenging
Emerging Markets
Total
11,8
92,5
11,3
92,2
4,5%
0,3%
5,6%
1,2%
market conditions and related stock reductions
16.5%
• Australia/New Zealand: low single-digit growth in
* Excluding the impact of IFRS 15 and 16
Organic growth: at constant currencies, excluding one-off items a stable market environment

22
Revenue by region
Revenue development at constant currencies (in €m)

North America
0.6 -0.8 North America
92.5
92.2
• Positive growth trend continues with 15% organic growth
2.4
-1.9 • 20% revenue growth in the US, mainly driven by Passoã
and Damrak Gin as well as by the introduction of Nuvo
21.1%
-0.1
• Bols Liqueurs continues to gain market share
• Lower revenue in Canada more than offset by growth of
Passoã in Puerto Rico

FY Δ Western Δ Asia- Δ North Δ Δ FX FY

2017/18 Europe Pacific America Emerging 2018/19
Markets Emerging
Emerging Markets Markets
• Revenue growth of 5.6% organically
• Continued growth in depletions in Russia and Poland at lower
FY 2018/19* FY 2017/18 Reported Organic
Revenue (* €m)
growth % growth % shipment levels; rest of Eastern Europe in line with last year 12.8%

• South America is showing growth. Positive impact of change

Western Europe 45,9 48,0 -4,4% -3,9%
Asia - Pacific 15,3 16,2 -5,7% -0,4% in route to market more than compensates the decline in
North America 19,5 16,6 17,2% 15,0% Argentina
Emerging Markets 11,8 11,3 4,5% 5,6%
Total 92,5 92,2 0,3% 1,2% • The Caribbean recovered from last year’s hurricane impact

* Excluding the impact of IFRS 15 and 16

• Regional brands impacted by (temporary) import restrictions
Organic growth: at constant currencies, excluding one-off items In Western Africa which were lifted in the second half

23
Gross profit margin influenced by country mix
Gross profit development (in €m)

Gross margin development at constant

-3,1% currencies
57,1

Total -160 bps

-0,1
-1,7 Western Europe -140 bps

1,3 -1,0
Asia-Pacific -130 bps
55,3
-0,2 North America -80 bps
-0,6
54,7
Emerging Markets -450 bps

Group gross profit structure

(FY 2018/19)

12.8%

21.0%
46.2%
FY 2017/18 Δ Western Δ Asia- Δ North Δ Emerging Δ FX Normalized One-offs FY 2018/19
Europe Pacific America Markets Gross profit

20.0%
62.0% 55.1% 71.5% 59.0% 59.2% 59.8% 59.2%

Reported gross margin

Western Europe Asia Pacific
North-America Emerging Markets

24
EBIT
EBIT development (in €m)

-11.9%
Highlights
23.6

-0.7 Normalised EBIT came in at € 20.8 million, down

-0.2 7.6% at constant currencies as a result of the
-0.8 lower gross margin. 30.6%

-1.1 Currencies had a negative69.4%

impact of € 1.1 million
20.8 on EBIT.
-1.2
19.6
The one-off items comprise:
• € 0.6 million net restructuring charge
at Avandis
• € 0.6 million advisory costs

The normalised EBIT margin came in at 22.5%

compared to 25.6% in 2017/18.
FY 2017/18 Δ Global Δ Regional Δ Unallocated Δ FX Normalized Δ One-offs FY 2018/19
Brands Brands EBIT
Excl. currency effects the decline was 220 bps.
22.5% 21.2%
25.6% 38.5% 39.7%

Reported EBIT margin

25
Global brands
Highlights

At constant currencies the global brands were up 3.5%.

Gross profit came in at € 45.4 million. The gross margin was down
270 bps on an organic basis, impacted by negative geographic mix
and the introduction of Nuvo with a lower than average gross margin.

EBIT was down 2.3% year-on-year at constant currencies and

excluding the one-off costs related to Avandis, while the EBIT margin
came in at 38.5%.
Currencies had a negative impact of € 0.9 million.
* Excluding the impact of IFRS 15 and 16
Organic growth: at constant currencies, excluding one-off items

26
 Regional brands

Highlights
FY 2018/19* FY 2017/18* Reported Organic
Reported (* €m)
growth growth

Revenue of regional brands was down 5.9%, H2 showed

Revenue 20,9 22,3 -6,4% -5,9%
improved trends.
Cost of sales -11,6 -12,1

GROSS PROFIT 9,3 10,2 -9,2% -5,0%

Gross margin % 44,5% 45,9% -140bps +40bps

Gross profit decreased to € 9.3 million from € 10.2

D&A expenses -1,8 -2,0 -12,1% -12,1%
million in 2017/18, in line with the revenue development.
% of revenues -8,6% -9,1%
Organically the gross margin increased by 40 bps as a
OPERATING PROFIT 7,5 8,2 -8,5% -3,3% result of price increases in Africa.
Operating margin % 35,9% 36,8% -80bps +100bps

Share of profit of JVs, net of tax 0,8 0,8

EBIT 8,3 9,0 -7,5% -2,7%
EBIT margin % 39,7% 40,2% -50bps +140bps Excluding the one-off restructuring charge at Avandis
and at constant currencies, EBIT was down 2.7% in
* Excluding the impact of IFRS 15 and 16 2018/19, while the EBIT margin was up 140 bps
Organic growth: at constant currencies, excluding one-off items
organically.

27
Stable dividend to 2017/18 at € 0.60 per share
FY 2018/19* FY 2017/18
Highlights
Reported (* €mil)
Finance costs impacted by one-off of € 0.4 million accelerated depreciation of fees.
Revenue 92,5 92,2
Cost of sales -37,8 -35,1 The effective tax rate, excluding the one-off tax benefit, was 26.4% for the 2018/19 financial
year (2017/18: 26.5%), above the Dutch nominal tax rate as profits of Passoã are taxed at a
GROSS PROFIT 54,7 57,1
Gross margin % 59,2% 62,0%
higher rate in France.
D&A expenses -36,1 -34,5
Given the upcoming reduction in the Dutch corporate tax rate, a significant one-off gain of €
% of revenues -39,0% -37,4%
OPERATING PROFIT 18,6 22,6 5.3 million was recognized in the second half of the year, related to the deferred tax liability.
Operating margin % 20,1% 24,6% 2017/18 included a similar one-off tax benefit of € 5.6 million.
Share of profit of JVs, net of tax 1,0 1,0
EBIT 19,6 23,6 Earnings per share (pre-IFRS 16) of € 1.33 (post-IFRS 16: € 1.32). Excluding one-off costs the
EBIT margin % 21,2% 25,6%
earnings per share came in at € 1.03.

Finance costs
PROFIT BEFORE TAX
-3,7
15,9
-3,5
20,1
Proposed final dividend of € 0.25 per share putting total full-year dividend at € 0.60 per share,
equal to last year. A payout ratio of 58%
Income tax 0,7 0,3
PROFIT FOR THE PERIOD 16,6 20,4
Number of shares outstanding are 12,477,298
Earnings per share € 1,33 € 1,64

Reconciliation – profit for the period

* Excluding the impact of IFRS 15 and 16 FY 2018/19*

Reported (* €mil)
Organic growth: at constant currencies, excluding one-off items

PROFIT FOR THE PERIOD 16,6

One-offs
-restructuring charge Avandis 0,6
-advisory costs 0,6
-amortiz. financing costs 0,4
-tax benefit -5,3
NORMALIZED PROFIT FOR THE PERIOD 12,9

28
IFRS 15 and 16 impact
FY 2018/19 IFRS 15 & 16 FY 2018/19 FY 2018/19 IFRS 15 & 16 FY 2018/19
REPORTED ADOPTION PRE-IFRS REPORTED ADOPTION PRE-IFRS
Reported (* €mil) Reported (* €m)
IMPACT IMPACT

Revenue 87,0 5,5 92,5 Property, plant and equipment 10,4 -7,1 3,3
Cost of sales -37,7 -0,1 -37,8 Other non-current assets 315,0 - 315,0
NON-CURRENT ASSETS 325,4 -7,1 318,3
GROSS PROFIT 49,3 5,4 54,7
Gross margin % 56,6% 59,2% CURRENT ASSETS 39,8 - 39,8

D&A expenses -30,6 -5,5 -36,1 TOTAL ASSETS 365,2 -7,1 358,1

% of revenues -35,2% -39,0%

Funded by equity and liabilities
OPERATING PROFIT 18,6 0,0 18,6
EQUITY 192,2 0,1 192,3
Operating margin % 21,4% 20,1%

Loans and borrowings 47,6 - 47,6

Share of profit of JVs, net of tax 1,0 0,0 1,0
Employee benefits 0,3 - 0,3
EBIT 19,6 0,0 19,6
Deferred tax liabilities 40,0 0,0 40,0
EBIT margin % 22,6% 21,2%
Other non-current liabilities 76,4 -6,6 69,9
NON-CURRENT LIABILITIES 164,4 -6,5 157,9
Net finance costs -3,9 0,2 -3,7
PROFIT BEFORE TAX 15,7 0,1 15,9
Loans and borrowings 7,6 - 7,6
Other current liabillities 1,1 -0,6 0,4
Income tax 0,7 0,0 0,7
CURRENT LIABILITIES 8,6 -0,6 8,0
PROFIT FOR THE PERIOD 16,5 0,1 16,6
TOTAL LIABILITIES 173,0 -7,2 165,9

TOTAL EQUITY AND LIABILITIES 365,2 -7,1 358,1

29
Balance sheet
Highlights
Reported (* €m) FY 2018/19 FY 2017/18

Net working capital € 18.5 million, given temporary higher inventories

Intangible assets 306,8 306,9
Investments in joint ventures 7,6 7,4
and receivables
Other 11,0 2,6
NON-CURRENT ASSETS 325,4 316,9 Other non-current liabilities include an assumed debt of € 69.3 million
Cash and cash equivalents 21,2 12,4
related to the call/put option related to Passoã
Net working capital 18,5 14,4
Inventories The net debt to EBITDA ratio is 3.4. The net debt to EBITDA ratio
Trade and other receivables
Other 0,0 0,1
including assumed debt was 4.8

TOTAL CURRENT ASSETS 39,8 26,9

TOTAL 365,2 343,8

Funded by equity and liabilities

EQUITY 192,2 183,6 Reported (* €m) FY 2018/19 FY 2017/18
Loans and borrowings 47,6 43,9
Employee benefits
Deferred tax assets 3,3 5,3
Deferred tax liabilities 40,0 43,1
Other 77,4 68,8 Deferred tax liabilities -43,2 -48,4
NON-CURRENT LIABILITIES 165,0 155,8 Total deferred tax -40,0 -43,1

Loans and borrowings 7,6 4,0

Trade and other payables
Derivative financial instruments 0,4 0,4
CURRENT LIABILITIES 8,0 4,4

TOTAL LIABILITIES 173,0 160,2

TOTAL 365,2 343,8

30
 Cash flow

Cash conversion
Highlights
Cash flow development (in €m) -41.0%

18.6 18.7
0.7 -1.9
Cash flow was temporarily impacted by catch up on
-2.9
income tax payable in France (€ 1.7 million), one-
-4.4
1.2
-0.2
11.0
offs € 1.2 million as well as CAPEX investments in
our headquarters (€ 1.4 million)

Operating Depreciation CAPEX Working Income tax Dividends Other FOCF FOCF
profit FY capital from JVs FY 18/19 FY 17/18
2018/19*
Cash flows were used to pay dividends (€ 7.5
million)
FOCF vs last year

18.7
-1.4
-1.2
-1.1 0.7
-2.7

-1.4 11.0
-0.6

FOCF Δ EBITDA One-offs FX Δ Working Δ Income tax Δ CAPEX Other FOCF 18/19*
FY 17/18 (recurring) capital

* Excluding the impact of IFRS 15 and 16

31
Important aspects of Lucas Bols’ currency effects

USD exchange rate JPY exchange rate

• 53.1% of revenue is denominated in foreign

currencies in FY 2018/19 (compared to 49.7% in
FY 2017/18)

• Lucas Bols has a policy of hedging 60 - 80% of its

net cashflows in foreign currencies at the start of
the financial year

AUD exchange rate GBP exchange rate • In FY 2018/19, as a result of the stronger euro,
foreign currencies had a negative impact of € 0.8
million on revenue and € 1.1 million on EBIT

• Taking into account the foreign currency positions

already hedged and assuming the current level of
the euro, foreign currencies are expected to have a
broadly neutral impact on EBIT in the 2019/20
financial year

32
 FY 2018/19

1. Lucas Bols at a glance

2. Operational highlights
3. Financials
4. Outlook

33
Outlook

• Despite the geopolitical uncertainty and volatility that characterises current times, the underlying market dynamics in the global
cocktail market remain healthy.

• At Lucas Bols we want to add flavour to the world and to provide great cocktail experiences. We will continue to activate and
grow our global brands in line with our strategy, with innovative drink concepts and by acting on upcoming trends around the
world. We will further capitalise on the growth of our global brands in the US and China by further strengthening our market
position.

• The retail markets in Western Europe are likely to remain challenging, continuing to impact the performance of the regional
brands.

• We see upward pressure in our raw material and logistics costs, which we aim to offset by premiumisation and revenue
management initiatives while prudently managing the indirect cost base.

• Foreign currencies are expected to have a broadly neutral impact on EBIT in the 2019/20 financial year.

• Operating free cash flow and Capex are expected to return to normal levels, effective tax rate expected to be around 25%.

• We will continue to monitor potential add-ons of brands which can be integrated into our production and distribution platform.

34