Bel

First quarter 2020 sales - Seite 3

Along with its production teams, partner farmers and suppliers, Bel is doing everything to continue its operations and to participate in the collective effort to uphold the food supply chain.

The company has:

• increased its food and packaging raw material inventories to ensure production continuity,
• taken measures to ensure the supply of raw materials to its plants and products to its retail partners,
• established plans for operations continuity at its plants,
• adapted its production lines to best meet the needs of consumers during the lockdown period,
• adapted its supply chain to ensure that products are delivered to market under the best conditions.

Bel will also continue to evolve its distribution methods and product offerings with agility, to accommodate the new consumer trends expected to result from these unprecedented times in the markets where it operates.

Bel's financial position remains healthy, with strong liquidity both in terms of cash and untapped credit lines. As a reminder, at December 31, 2019, Bel had €403 million in surplus cash and cash equivalents, with just €30 million in outstanding NEU CP commercial paper, and €820 million in untapped credit lines maturing in 2023 and 2024.

Dividend cut

In view of the Covid-19 pandemic, the Board of Directors meeting today voted to lower the 2019 dividend initially proposed by the March 11 Board of Directors, reducing it by nearly 30% versus the dividend paid out for the 2018 financial year. A dividend of €3.50 per share, with an ex-dividend date on May 20 and payable as of May 22, 2020, will be proposed for approval by the Annual General Meeting (AGM) scheduled for May 14, 2020. The conditions for the AGM will be provided in a separate, dedicated press release.

With a long-term commitment to champion healthier and responsible food for all embodied by its new "For All. For Good" signature, Bel is fully in sync with a sustainable and profitable growth model.

Bel's financial performance indicators

The Group uses non-IFRS financial performance indicators internally and for its external communication. These non-IFRS indicators are defined below:

Organic growth corresponds to reported sales growth, excluding impacts from foreign exchange fluctuations and changes in the scope of consolidation, i.e. on a constant structure and exchange rate basis. The organic growth rate is calculated by applying the exchange rate for the prior year period to the current year period.