www.tigerbrands.com INTEGRATED ANNUAL REPORT for the year ended 30 September 2024 2024 WE NOURISH AND NURTURE MORE LIVES EVERY DAY ENTER Tiger Brands’ 2024 integrated reporting suite Our 2024 integrated reporting process comprises the following reports: ENTER INTEGRATED ANNUAL REPORT for the year ended 30 September 2024 2024 WE NOURISH AND NURTURE MORE LIVES EVERY DAY Integrated annual report 2024 Provides a succinct review of our strategy and business model, operating context, operational performance and governance. Aimed primarily at existing and potential investors, lenders and other creditors, it is written for use by all parties who have an interest in Tiger Brands’ long-term performance. ENTER ANNUAL FINANCIAL STATEMENTS for the year ended 30 September 2024 2024 WE NOURISH AND NURTURE MORE LIVES EVERY DAY Annual financial statements 2024 Comprehensive review of our financial results, with audited financial statements, prepared in accordance with IFRS accounting standards. ENTER SUSTAINABILITY REPORT Supplement to the integrated annual report for the year ended 30 September 2024 2024 WE NOURISH AND NURTURE MORE LIVES EVERY DAY Sustainability report 2024 Reviews our performance in managing our most significant impacts on people, society and the environment (impact materiality), and in addressing the significant sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance, or cost of capital over the short, medium or long term (financial materiality). These reports are all available at www.tigerbrands.com Overview 2 About this report 4 Our value contribution in 2024 6 Our footprint 8 Our investment case Our business 10 Group profile 12 Our board 15 Our executive committee 18 Chairman’s review 20 Chief executive officer’s statement 24 Our business model 26 How we sustain value 30 Our key relationships Our operating context 34 Our operating environment 40 Material risks and opportunities Our strategy 51 Shaping our portfolio of the future 52 Cost leadership 54 Rejuvenate our brands 56 Executing growth platforms 58 Superior channel presence 61 Our strategic enablers Our performance 68 Chief financial officer’s review 72 Milling and Baking 73 Grains 74 Culinary 75 Snacks, Treats and Beverages 76 Home, Personal Care & Baby (HPCB) 77 International Governance 78 Protecting value through good governance 84 Remuneration and performance Appendices 114 Company information Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving consumer goods (FMCG). Our core business is the manufacture, marketing and distribution of everyday branded food and beverages. Our products are relevant across every meal occasion and are well-positioned to grow. The portfolio also includes leading brands in the home and personal care segments, supported by a growing presence in Africa. We treat each other with care and respect We deliver with passion and excellence Safety and quality are non-negotiable for us We embrace diversity and inclusivity We act with integrity and accountability in all we do OUR VALUES Winning behaviours How to navigate the report Reference to further online disclosure Further reading in the sustainability report Jump to page within document We nourish and nurture more lives every day. OUR PURPOSE Growing southern Africa’s leading consumer goods company that places the consumer at the centre of everything, through our people, with the most accessible loved brands. OUR VISION Sustainable profitable growth and market leadership. OUR MISSION OUR STRATEGY Our strategy for sustainable profitable growth is driven by our five strategic thrusts and our enablers, underpinned by our winning behaviours and core values. Key enablers Shaping our portfolio of the future Cost leadership Rejuvenate our brands Executing growth platforms Superior channel presence Federated operating model Competitive digital capabilities Ignite our people Competitive manufacturing Game-changing innovation Sustainable agricultural sourcing Consumer obsession Teamwork Empowered accountability Focused execution Tiger Brands Limited Integrated annual report 2024 1 Tiger Brands Limited Integrated annual report 2024 Contents Who we are Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Report audience and purpose Tiger Brands’ integrated report (IR) is our primary annual report in our annual reporting suite. The IR is written mainly for existing and potential investors, lenders and other creditors who have an interest in Tiger Brands’ capacity to create value over the short, medium and long term, and those who are assessing whether to provide resources to the company. Although this report will be of interest to a broad range of interested parties – including customers, government and regulators, current and prospective employees, civil society organisations and the media – the primary purpose of this report is to inform the decisions of report users relating to the provision of resources to the company. By providing a frank review of our business model and strategy, the risks and opportunities in our operating environment, and our governance activities and performance for the financial year ending 30 September 2024, the report is intended to help report users to assess whether Tiger Brands is a good long-term investment. The IR should be read in conjunction with our sustainability report (SR) and our annual financial statements (AFS), available on our website: www.tigerbrands.co.za. Reporting frameworks The reporting process across our reporting suite complies with the following regulatory requirements: « South African Companies Act, 71 of 2008 (as amended) « King IV Code on Corporate Governance™ for South Africa, 2016 (King IV) « The International Financial Reporting Standards (IFRS) accounting standards, developed and maintained by the International Accounting Standards Board (IASB) Our reporting has also been informed by the following disclosure standards and frameworks: « The GRI Sustainability Reporting Standards « The IFRS sustainability standards issued by the International Sustainability Standards Board (ISSB): IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures « The Processed Foods Sustainability Accounting Standard issued by the Sustainability Accounting Standards Board (SASB) « The JSE Sustainability Disclosure Guidance and JSE Climate Disclosure Guidance Noting the growing call from investors and analysts for transparent, reliable and comparable ESG data, we have also made provision for the disclosure expectations of relevant ESG ratings agencies. Our approach to materiality In response to recent developments in global disclosure standards and frameworks, we have adopted double materiality across our reporting suite. Financial materiality: Our IR provides information on those matters that are likely to influence report users’ assessment of Tiger Brands’ future cash flows over the short term (less than 12 months), medium term (one to three years) and long term (beyond three years). Our AFS reflect the effects on company value and cash flow that have already taken place at the time of the financial year end. Impact materiality: Our SR provides disclosure on the most significant impacts of our operations and activities on people, society and the environment over the short, medium or long term; this includes impacts caused by the company in its own operations, products or services, as well as the impacts directly linked to Tiger Brands’ upstream and downstream value chain. We have also made provision in the SR for financially-material ESG risks and opportunities impacting the business, thus adopting a double materiality perspective for our sustainability report. Our materiality process To identify the issues for inclusion in our IR and SR we ran an independently facilitated materiality workshop in which management representatives from across the company considered the following issues: Our business model: Reviewing Tiger Brands’ significant revenue and cost streams and areas for differentiation and identifying our most important resources and relationships across our value chain, including specific resources and relationships we depend on for capital value retention and growth. Our dependencies and impacts on the capitals: Reviewing where we have the most significant dependencies and impacts (positive and negative, direct and indirect) on each of the capital stocks. Our operating environment: Identifying the most important trends in our operating environment, including relevant sustainability-related risks and opportunities that we anticipate will impact our performance over time, and reflecting on the outcomes of our latest internal risk assessment process. Our stakeholders’ interests: Reviewing the matters of greatest interest to our stakeholders and providing for the latest developments in global disclosure standards and for the outcomes of recent assessments of relevant ESG rating agencies and internal board discussions. Our strategy: Reflecting on the robustness of our current strategy to ensure Tiger Brands’ long-term resilience is informed by the above analysis. The outcomes of this internal materiality process informed the content and structure of our IR and SR. We prioritised the matters for inclusion in these reports based on their relative importance, applying the principle of double materiality. Our aim is that all the information in the IR is material, in that it should be reasonably capable of influencing the decision of any report user wishing to make an informed assessment relating to the provision of resources to the company. Our IR is structured in a manner to enable such an assessment, by providing information on our business (see pages 10 to 28), our operating context (see pages 30 to 46), our strategy (see pages 48 to 66) and our governance (see pages 78 to 83). The most significant risks impacting value (see page 40), together with the key trends in our operating environment (see page 34), are often seen as constituting a discrete set of material issues. These risks and trends are not sufficient, however, to inform report users’ assessments of value creation; hence we have chosen once again not to list a separate set of material issues. Report boundary In assessing those issues that materially impact value creation we have looked beyond the conventional financial reporting boundary to provide for the relevant interests of key stakeholders. We have considered the most significant risks, opportunities and impacts associated with our own operations, as well as with the activities directly linked to Tiger Brands’ upstream and downstream value chain. Combined assurance Combined assurance refers to the incorporation of all assurance services and activities to optimise our risk and governance oversight function within our risk appetite. All assurance providers co-ordinate efforts and reporting, ensuring alignment of governance and risk activities with the company strategy and improved business performance. The board and audit and risk committees and sustainability committee are responsible for overseeing the effectiveness of combined assurance arrangements within the organisation, directing the effort of the three lines of assurance. First line of assurance: All levels of management – covering strategy development and implementation, performance measurement, risk management and company control and monitoring of assurance to laws and regulations. Second line of assurance: Corporate functions and oversight forums (such as the company secretariat, compliance function, combined assurance forums, operational audit and risk committees) – all risk and assurance management structures of the company such as risk management, compliance and legal services. Third line of assurance: Internal audit, external audit and other assurance providers who are independent of the operational activities of the company and provide assurance to the board. This year, Deloitte audited our consolidated annual financial statements, from which extracts have been included in this report. The auditor’s report does not report on all the information included in the IR. EmpowerLogic (Proprietary) Limited provided external verification of our B-BBEE activities. Marsh South Africa conducted risk control audits at our manufacturing sites and warehouses covering health, safety, security, fire protection and readiness. Board approval As members of the Tiger Brands’ board, we acknowledge our collective responsibility for ensuring the integrity of this report, which was drafted with input from all members of the executive team. The board has applied its collective mind to the preparation and presentation of the information in this report. We believe that the report presents a balanced and fair account of Tiger Brands’ performance, governance practices and operating context for the financial year ended 30 September 2024, as well as an accurate reflection of our strategic commitments. On the advice of the audit committee, the board approved the integrated report and the consolidated annual financial statements on 3 December 2024. We invite our stakeholders to review this report and to provide feedback on the company’s performance, strategy and disclosure. Geraldine Fraser-Moleketi Tjaart Kruger Chairman Chief executive officer Donald Wilson Chairman of audit committee Tiger Brands Limited Integrated annual report 2024 3 2 Tiger Brands Limited Integrated annual report 2024 About this report Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com The value created, preserved or eroded for our stakeholders in 2024 Financial performance Delivery of value by stakeholder groups Providers of financial capital « R1,6 billion paid in dividends (2023: R1,6 billion) « 16,8% return on equity (2023: 15,7%) « 21,3% return on net assets (2023: 21,7%) « 15,3% return on invested capital* (2023: 14,7%) « R5,5 billion cash generated from operations (2023: R2,7 billion) Consumers « 48 innovation now includes renovation projects launched this year (2023: 31) « 27,9% value share (2023: 29,4%) « Expanded our reach in the booming South African informal sector, securing 91 000 general trade stores this year « 22 awards Suppliers « R14,3 billion spent with B-BBEE-verified suppliers (2023: R18 billion) « R5,4 billion spent with black-owned enterprises (2023: R7 billion) « R4,7 billion spent with black women-owned enterprises (2023: R6 billion) Employees « R4,8 billion paid in salaries and benefits to 8 785 permanent employees (2023: R4,5 billion to 9 296 employees) « R73,5 million invested in employee training and development (2023: R93 million) « One work-related employee fatality (2023: one) Customers (retailers, wholesalers and general trade) « 96% on-shelf availability (2023: 98%) « 90% order-fill (2023: 91%) Communities « R28,8 million total socio-economic development spend (2023: R70 million) « 14 million breakfasts served by The Tiger Brands Foundation, reaching 74 465 learners (2023: 14 million breakfasts) Evidence of our turnaround strategy and new operating model are beginning to take effect, with stronger second-half performance under difficult trading conditions * Invested capital adjusted to exclude re-instated goodwill on discontinued businesses Group operating income* 2023: R3,1 billion R3,1 billion 1% Revenue 2023: R37,4 billion R37,7 billion 1% Income from associates 2023: R697 million R724 million 4% EPS 2023: 1 725cps 1 942cps 13% Final dividend 2023: 671cps 684cps 2% HEPS 2023: 1 735cps 1 810cps 4% Total dividend 2023: 991cps 1 034cps 4% * Before impairments and non-operational items Tiger Brands Limited Integrated annual report 2024 5 4 Tiger Brands Limited Integrated annual report 2024 Our value contribution in 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com * Botswana, Namibia, Lesotho and Eswatini are serviced by the domestic business Manufacture Current exports Out of scope* Own and operate 37 manufacturing units 36 in South Africa and 1 in Cameroon Roughly 53% of total export sales to and export to 29 markets in Africa 4 priority markets: Mozambique, Zimbabwe, Zambia and BLNE* Milling and Baking Grains Culinary Snacks, Treats and Beverages Home, Personal Care & Baby (HPCB) International Snacks, Treats and Beverages Durban – Jacobs, Mallows and Jellies Culinary Roodepoort, peanut butter Bakeries Durban – Mobeni, Albany Milling Randfontein Culinary Ashton, East plant (fruit) Grains Potchefstroom, King Foods Snacks, Treats and Beverages Durban – Mobeni, chocolate, candy Culinary Marble Hall, vegetable preparation Bakeries Germiston, Albany Grains Hennenman, Tiger Milling Culinary Paarl, Jam Bakeries Pretoria, Albany Grains Isando, pasta Home, Personal Care & Baby Ndabeni: jarred food, pouches, cereal Culinary Musina, tomato paste Bakeries Randburg, Albany – Manna Grains Pietermaritzburg, Tiger Milling Culinary Lutzville, tomato paste Bakeries Randfontein, Albany Grains Maitland, Jungle Home, Personal Care & Baby Isando Snacks, Treats and Beverages Roodekop, Beverages Culinary Crown Mines, Davita Bakeries Bellville, Albany Grains Bellville, Tiger Milling Culinary Boksburg: Vegetable, Tomato Sauce, Salads, Mayonnaise Bakeries Pietermaritzburg, Albany Grains Durban – Mobeni, Tastic Rice Culinary Ashton, West plant (beans) Bakeries Secunda, Albany FS EC WC NC NW GP KZN L Market share (% value share 2024) Ghana Nigeria Uganda Tanzania Democratic Republic of the Congo Angola Zambia Zimbabwe Mozambique Malawi Madagascar Namibia Botswana Eswatini Lesotho South Africa Cameroon Kenya Senegal Ethiopia Côte d'Ivoire South Sudan Bakeries Sasolburg, Albany 34,6 10,6 48,4 22,2 36,4 24,8 27,0 27,9 37,7 Baby Personal Care Home Care Beverages Sweet Treats Culinary Grains Bakeries Tiger defined basket * Botswana, Lesotho, Namibia and eSwatini Tiger Brands Limited Integrated annual report 2024 7 6 Tiger Brands Limited Integrated annual report 2024 We currently export our products to 29 markets in Africa South Africa Our footprint Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Strong brands « More than one hundred years’ experience in producing quality, branded products that continue to resonate with consumers « With almost 30%* of South Africa’s grocery basket, Tiger Brands has leading positions in most categories « Our products provide a solution for every meal occasion and meet consumer needs through a range of daily touchpoints Equity rank #1 Volume rank #1 Value rank #1 Equity rank #3 Volume rank #2 Value rank #2 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #2 Volume rank #1 Value rank #1 Equity rank #6 Volume rank #5 Value rank #5 Equity rank #1 Volume rank #2 Value rank #2 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #1 Volume rank #1 Value rank #1 Equity rank #7 Volume rank #2 Value rank #2 Equity rank #1 Volume rank #3 Value rank #2 Equity rank #1 Volume rank #1 Value rank #1 Equity rank n/a Volume rank #1 Value rank #1 Equity rank #1 Volume rank #1 Value rank #1 Refreshed leadership and operating model « Revised federated operating model implemented « Five managing directors to lead business units « Deliberate and focused execution and delivering improved returns Strong financial position « Cash-generative operations « Balance sheet flexibility « Ability to invest in capex « Attractive dividend yield at 4,07% Growth areas Informal market (General trade) The informal market in South Africa is valued at approximately R197 billion a year; we are pursuing various initiatives to expand our reach and relevance in this market and have reached 91 000 stores with the aim to expand our presence to 130 000 stores by 2029. Core products and brands We are sharpening our focus on the core power and specialist brands to drive growth and ensure adequate return on marketing investment. This will enable us to continue driving relevance of our products and ensure execution on our growth platforms of driving affordability, democratising health and nutrition, and over-indexing on snackification. Technology and digital commerce Leveraging technology to drive growth, improve productivity and increase customer engagement. The South African e-commerce channel is estimated at R5,1 billion; together with our strategic partners, we continue to drive our presence in grocery e-commerce and pioneer new digital e-commerce channels. Consumer-centric turnaround strategy and new leadership team to drive growth and restore profitability. Brand role: Power brand Brand role: Specialist brand Positive environmental, social and governance (ESG) performance « Continued progress in delivering on our sustainable future strategy and our three strategic focus areas: health and nutrition, enhanced livelihoods and environmental stewardship « Various initiatives in place to address our material sustainability-related impacts, risks and opportunities (reviewed in more detail in our sustainability report) Dividend yield (%) 4,07 4,93 1,03 Three-year dividend growth One-year dividend growth 12-month yield Source: Bloomberg Tiger Brands Limited Integrated annual report 2024 9 8 Tiger Brands Limited Integrated annual report 2024 Our investment case Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Our core business is providing everyday branded food to large and growing markets, primarily in South Africa and neighbouring countries. We target best-in-class profitability, underpinned by a cost-leadership culture and a strong commitment to sustainable agricultural sourcing. We have leading positions in most categories and our iconic brands are well-entrenched with consumers in South Africa, as illustrated by the percentage share of market. Grains Culinary International Snacks, Treats and Beverages Revenue R8,5 billion 2023: R8,4 billion Operating income R0,09 billion 2023: R0,20 billion Revenue R8,9 billion 2023: R8,4 billion Operating income R0,82 billion 2023: R0,54 billion Revenue R5,8 billion 2023: R5,3 billion Operating income R0,72 billion 2023: R0,67 billion Revenue R2,6 billion 2023: R2,6 billion Operating income R0,32 billion 2023: R0,31 billion International operations « Cameroon (Chococam) Deciduous fruit « Langeberg & Ashton Food (LAF) Snacks and Treats « Sugar « Chocolate Beverages « Concentrates « Sports drinks « Ready-to-drink Other Grains « Pasta « Oat-based breakfast (Jungle) « Rice « Maize and sorghum Culinary « Condiments and ingredients « Spreads « Canned fruit and vegetables « Davita Core Brands Core Brands Home, Personal Care & Baby (HPCB) Revenue R3,7 billion 2023: R3,6 billion Operating income R0,67 billion 2023: R0,66 billion Personal care « Body care (includes Camphor cream) « Depilatories « Hair care « Deodorant « Hair styling Home care « Sanitary cleaners « Pesticides Baby « Baby nutrition « Baby wellbeing (held for sale) Milling and Baking Revenue R8,2 billion 2023: R9,1 billion Operating income R0,63 billion 2023: R0,68 billion Milling and Baking « Bakeries « Wheat milling Note that Chococam is a subsidiary. Tiger Brands Limited Integrated annual report 2024 11 10 Tiger Brands Limited Integrated annual report 2024 Group profile Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Our governance framework is designed to support our core purpose in line with the Companies Act, JSE Listings Requirements, King IV™ and other relevant laws and regulations, and ensures that Tiger Brands remains a good corporate citizen. GERALDINE FRASER- MOLEKETI 64 FRANK BRAEKEN 64 Lead independent director DONALD WILSON 67 LUCIA SWARTZ 66 Geraldine serves as chancellor of the Nelson Mandela University, a non-executive director on the board of the Standard Bank Group and Standard Bank South Africa and lead independent director of Exxaro Resources Limited. She is also chairman of the Thabo Mbeki Foundation. She is a fellow of the Institute of Politics at the Harvard Kennedy School and has completed a leadership course at Wharton Business School, University of Pennsylvania. Qualifications MA in Administration, Leading Organisational Change Executive Programme Area of expertise and contribution « Risk management « Leadership and strategy « Extensive governance and public administration « Stakeholder relations and sustainability/ESG leadership « Human resources and remuneration Board meeting attendance « 6/6* « 4/4# Based in Dubai, Frank has deep FMCG and emerging markets experience, having held various senior and executive roles at Unilever in Eastern Europe, Latin America, Africa and Asia. Other previous roles include executive chairman of Feronia Inc., chief investment officer of Amatheon Agri Holding and a short period at Procter & Gamble. He is currently chairman of MSI International and Baobab International, a non-executive director of Buhler Holdings AG (Switzerland), AECF LLC (USA) and Alliance for a Green Revolution in Africa (Kenya). Qualifications Masters in Law, MBA Area of expertise and contribution « General management and strategy « Mergers and acquisitions « Governance and risk management « FMCG and emerging market « Sustainability/ESG « Finance Board meeting attendance « 6/6* « 4/4# Donald is an experienced finance executive whose career spans over 20 years working for listed entities with global operations. He retired in 2020 as group finance director of Barloworld Limited, a global industrial company. At Barloworld, he played a strategic role during the unbundling of PPC Limited and the listing of Freeworld Limited. He is a non-executive director of Mpact Limited and Zeda Limited and director of BHBW Holdings (Proprietary) Limited. Qualifications CA(SA), BCom, CTA qualification Area of expertise and contribution « Mergers and acquisitions and stakeholder engagement « Extensive finance and general management « Governance and remuneration « Leadership and strategy « Risk management Board meeting attendance « 6/6* « 4/4# As an executive and strategic business partner within international corporate and startup operations, Lucia has wide-ranging experience in human resources leadership. She started her career with Reckitt & Colman before joining BP Southern Africa as human resources officer. Following this, she spent eight years at the Seagram Group of Companies as human resources director and later joined Sappi Limited as group head of HR. She also served as the vice president, people at AB InBev Africa Zone. Previously, Lucia served as a non-executive director of Clicks Holdings Limited, Zambian Breweries Plc and SABMiller Namibia Proprietary Limited. She is currently a non-executive director of Mr Price Group, Santam, Isizwe Advisory Services Proprietary Limited and MiWay Insurance Holdings. Qualifications BA in Psychology and Geography, Human Resources Management Diploma, Advanced Management Programme Area of expertise and contribution « General management and strategy « Extensive human resources « Remuneration policies « Governance and FMCG « Stakeholder relations and sustainability/ESG Board meeting attendance « 6/6* « 4/4# TJAART KRUGER 64 Chief executive officer Qualifications CA(SA), PMD Area of expertise and contribution « Strategy execution « Extensive FMCG experience « Culture alignment « Risk management Board meeting attendance « 6/6* « 1/1# Appointed November 2023 Appointed September 2020 and as chairman on January 2021 THUSHEN GOVENDER 48 Chief financial officer Qualifications CA(SA), MBA Area of expertise and contribution « Extensive FMCG experience « Finance « Strategy development and execution « Risk management Board meeting attendance « 5/5* « 1/1# Appointed January 2024 Appointed April 2022 Appointed June 2019 Appointed June 2022 Executive directors Independent non-executive directors Independent non-executive directors Chairman EMMA MASHILWANE 49 Emma is co-founder and CEO of MASA Group of Companies, which includes MASA Risk Advisory Services (Proprietary) Limited and MASA Chartered Accountants Incorporated. A seasoned chartered accountant, she has more than 15 years’ experience leading internal audit, external audit and advisory teams at various multi-national companies in the public and private sectors, including logistics, mining, financial services, retail, FMCG, real estate management, healthcare and non-profit organisations. Until 30 September 2023, Emma served as a non-executive director on the boards of Capitec Bank Holdings Limited and Capitec Bank. Qualifications BCompt (Unisa), BCom Honours, CA(SA), MBA, Global Executive Development Programme Area of expertise and contribution « Extensive auditing and finance « Governance and leadership « Corporate finance and banking « FMCG « Stakeholder relations and sustainability/ESG leadership « Human resources and remuneration Board meeting attendance « 6/6* « 3/4# Appointed December 2016 Chairman Investment committee Risk and sustainability committee Nomination and governance committee Remuneration committee Audit committee Social, ethics and transformation committee * Scheduled board meetings # Special board meetings * Scheduled board meetings # Special board meetings Tiger Brands Limited Integrated annual report 2024 13 12 Tiger Brands Limited Integrated annual report 2024 Our board as of 30 September 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Non-executive director SAM SITHOLE 51 Sam is co-founder and CEO of Value Capital Partners (VCP). Prior to VCP, he held several leadership positions at Brait including as executive director: Capital & Treasury. He was a partner at Deloitte, where he was group leader for the Financial Services Audit Practice in the Johannesburg office. Sam is chairman of Sun International, as well as an alternate director of Metair Investments and Adcorp Holdings and a former non-executive director of Altron. Qualifications BAcc (Hons), CA(SA), CA(Z), PLD Area of expertise and contribution « Investment and finance « General management and strategy « Mergers and acquisitions « Governance « Stakeholder relations « Human resources and remuneration Board meeting attendance « 6/6* « 2/4# Appointed April 2023 Chairman Investment committee Risk and sustainability committee Nomination and governance committee Remuneration committee Audit committee Social, ethics and transformation committee Our executive committee facilitates the effective control and monitoring of the business activities in terms of the delegation of authority framework approved by the board. It is responsible for implementing policies and executing strategies in line with the board’s mandate and ensuring that appropriate internal controls are in place to maintain compliance with relevant laws and best practice. Qualifications CA(SA), PMD Tjaart is a CA(SA) with a PMD from Harvard Business School and has more than 30 years of leadership experience garnered from multiple leading South African companies including strong fast-moving consumer goods (FMCG) know-how. He sharpened his career through previous experience as divisional managing director at ICS Foods Limited (today Astral Foods), CEO of Country Bird Proprietary Limited, and at Tiger Brands as the managing executive for the Pharmaceuticals and Grains divisions over the period 2001 to 2007. In 2007, Tjaart was appointed as CEO of Afrox Limited where he gained experience in managing a global company with responsibility for operations in six countries. Prior to re-joining Tiger Brands in 2023, Tjaart served as CEO of Premier Foods over the period 2011 to 2021. Qualifications CA(SA), MBA Thushen re-joined Tiger Brands from Aspen Pharmacare, where he was group commercial officer responsible for markets including China, Russia, Ukraine, USA and Israel. Prior to this, he played a pivotal role in developing the international strategy of the Pioneer Foods Group with direct-line responsibility for the global exports business into markets such as North America, Asia, Africa and Europe, with Pioneer’s subsidiaries based in West and East Africa and the UK also reporting to him. During his previous tenure at Tiger Brands, he played a pivotal role in the execution and development of Tiger Brands’ growth strategy, having held the position of group strategy, investor relations and business development executive. Appointed November 2023 Appointed January 2024 TJAART KRUGER 64 Chief executive officer THUSHEN GOVENDER 48 Chief financial officer Qualifications BCom (Hons) (Statistics) Quinton joined Tiger Brands in November 2023 as managing director: Culinary from Nampak where he was the group executive for the Paper and Plastic division with oversight of 10 business units across seven countries. Prior to joining Nampak, Quinton held several key roles at Sasol, including business intelligence and strategy as well as commercial marketing and sales. Appointed February 2024 QUINTON SWART 49 Managing director: Bakeries Qualifications CA(SA), Post-graduate Diploma in Accounting, BAcc Dumo joined Tiger Brands in 2016 from PepsiCo, and has held numerous senior positions within the company. As finance director: Enterprise Food, Dumo played a pivotal role in re-establishing the business unit after the Listeria outbreak and preparing it for sale, as well as leading negotiations for its eventual disposal. As finance director: Culinary division, he laid the foundation for the Culinary turnaround he now leads as managing director: Culinary. Most recently, Dumo was the managing director: Cereals, where he drove innovation speed-to-market, and re-established key brands as market leaders. Appointed February 2024 DUMO MFINI 37 Managing director: Culinary * Scheduled board meetings # Special board meetings OLIVIER WEBER 61 Olivier is a senior executive with more than 30 years of experience in the food and beverage industry. He is currently director of Marilan Alimentos S.A. (Brazil), Risamar (USA) and Resiter S.A. (Chile). He has held various general management roles, including as president, leading the PepsiCo Food businesses in Latin America (except Mexico). He has specialised in successfully turning businesses around in Latin America and leading M&A activities. Qualifications BA in Economics, Marketing Area of expertise and contribution « General management and strategy « Mergers and acquisitions « Governance « Business turnaround and culture transformation « Risks management « ESG experience « Brand, marketing and reputational management « Human resources and remuneration Board meeting attendance « 6/6* « 4/4# Appointed August 2020 MAHLAPE SELLO 62 Mahlape is a practising advocate and a member of the Johannesburg Society of Advocates and of the International Court of Arbitration of the International Chamber of Commerce Council. She has been in practice since 2003. She is a panellist with the Arbitration Foundation of Southern Africa and China-Africa Joint Arbitration Centre. She is currently non-executive director of Life Healthcare Group Holdings Limited. Mahlape was appointed a member of the South African Law Reform Commission in 2007, on which she served until December 2011, before being re-appointed in August 2013. She was previously chairman of Murray & Roberts Limited, having been appointed to the board in 2009 and as chairman in 2013. She was chairman of the Advertising Industry Tribunal Appeal Committee of the Advertising Standards Authority of South Africa (appointed in 2013). Qualifications MA in Law, LLB Area of expertise and contribution « Extensive legal and commercial « General management and leadership « Governance and strategy « Stakeholder relations « Finance « Risk management Board meeting attendance « 6/6* « 3/4# Appointed October 2019 MICHAEL AJUKWU 68 Michael is a seasoned business executive who has held leadership roles across various sectors. He is currently non-executive director of International Breweries Plc, a subsidiary of AB InBev, MTN Limited (Nigeria), Novotel Hotels Group, Sterling Bank Plc, chairman of Munica Properties Investment Limited and Mobax Nigeria Limited. Previously, Michael was non-executive chairman of Fenikso Limited. Qualifications BSc (Finance), MBA Area of expertise and contribution « Stakeholder relations « Risks and general management « Corporate finance « West Africa « Banking and finance « FMCG Board meeting attendance « 6/6* « 4/4# Appointed March 2015 Independent non-executive directors Tiger Brands Limited Integrated annual report 2024 15 14 Tiger Brands Limited Integrated annual report 2024 Our board continued Our executive committee as of 30 September 2024 as of 30 September 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Qualifications BA, LLB, Post-graduate Diploma Commercial Intellectual Property, (Admitted Attorney) Joe joined Tiger Brands from the Massmart Group where he served as group legal executive, general counsel and company secretary until December 2019. Prior to Massmart, Joe held various senior corporate legal roles at British American Tobacco Southern Africa Region and The Coca-Cola Company in South Africa and the UK. He is an admitted attorney and an accomplished legal and corporate executive with extensive corporate legal skills and multi-national FMCG experience as well as retail knowledge. Appointed January 2020 JOE RALEBEPA 53 Chief legal officer Qualifications BCom (Marketing) Liezel was appointed managing director: Baby in April 2023 and started her journey at Tiger Brands 20 years ago as a graduate in marketing. She has expanded her skills and knowledge across various leadership roles within Tiger Brands including marketing, customer marketing and customer. Liezel was pivotal in step-changing the business trajectory in both Home, Personal Care & Baby (HPCB) and Total Tiger. Appointed February 2024 LIEZEL HOLMES 41 Managing director: Grains Qualifications BCom, MBA Zayd re-joined Tiger Brands from FNB, a division within the FirstRand Group, where he led the marketing team. He brings broad commercial, marketing, strategy and business leadership experience amassed through leadership roles in companies including Unilever, L’Oréal, Coca-Cola and MTN Group, in global, local and regional roles across sub-Saharan Africa, Europe, the Middle East and Turkey. He also spent several years running his own business. He has a track record in driving business, brand and category growth, and developing strategy from insights to execution. Appointed January 2023 ZAYD ABRAHAMS 47 Chief strategy and marketing officer Qualifications MBA, Higher diploma in Education Luigi has more than 15 years with Tiger Brands, after re-joining the group in 2009 as customer executive: Grains. He was previously with AVI: National Brands where he held the position of sales director of their Snackworks business. Luigi has more than 28 years’ experience in FMCG in both South Africa and international markets with particular emphasis on sales strategy and execution, customer management and customer relations. Re-joined the group in October 2009 Exco member since May 2019 LUIGI FERRINI 57 Chief customer officer Qualifications MBA, MSc in Packaging Technology, a Bachelor of Technology and a bachelor’s degree in chemical engineering Praveen joined Tiger Brands in August 2022 as operations support director. He has more than 20 years of general management experience in supply chain and has worked in over 14 countries on the African continent. In his various career roles, Praveen has focused on driving performance improvement and implementing World Class Manufacturing (WCM) standards. He also has deep experience in process development and optimisation, new installation projects, people development and quality control. Appointed May 2024 Appointed December 2016 PRAVEEN BALGOBIND 52 Chief manufacturing officer Qualifications Bachelor of Business Science (Finance), Post-graduate Diploma in Accounting and Auditing, CA(SA) Grant joined Tiger Brands in January 2022 as managing director: Snacks and Treats. He is a commercial executive with experience in a combination of marketing and finance leadership roles. Before joining the company, Grant was the director for Adjacencies at AB InBev where he was tasked with growing the “Beyond Beer” division in South Africa and nine other markets across the continent. Appointed May 2024 GRANT PEREIRA 52 Managing director: Snacks, Treats and Beverages Qualifications BCom Economics and Taxation Thabani joined Tiger Brands in 2022 as the customer strategy and capability director and was appointed customer director: Snacks, Treats and Beverages in June 2023. He brings well-rounded experience and a proven track record in various roles (customer director, customer marketing, strategy and managing director) at multinationals. At Tiger, Thabani also played a vital role in delivering key projects to drive route-to-market growth and e-commerce acceleration. He is a passionate people leader and also engages in coaching and career mentoring initiatives in his personal capacity. Appointed July 2024 THABANI MSOMI 44 Managing director: Home, Personal Care & Baby (HPCB) Previous MD of TBI, resigned effective January 2025. Qualifications BA (Social sciences), MBA S’ne is a seasoned and innovative business leader with a passion and track record for growing high impact teams that deliver results and create sustainable value. Before joining Tiger Brands, she was group senior vice president, human capital for the Sasol Group and has held various human resources leadership positions within Sasol since 2008, both locally and globally. Prior to joining Sasol, she spent 10 years at Shell in various roles in South Africa and the Netherlands. She is a well-rounded and highly experienced human resources executive having a proven track record in business strategy development and execution, global human resources leadership and organisational design. Appointed May 2018 S’NE MAGAGULA 51 Chief people officer Qualifications BA (Social sciences), Post-graduate degree in sociology, Fellow of Harvard University and has completed a number of executive education programmes Mary-Jane joined Tiger Brands in 2016 as the chief corporate affairs and sustainability officer. Prior to this, she was the head of corporate affairs at Anglo American Platinum from 2007 to 2013. Her passion for sustainability and women’s development has led to the establishment of many projects to address food security. Her desire to contribute positively to society has led to numerous recognitions. With a career spanning more than 30 years, she has tackled some of the toughest socio-economic challenges. Among her significant academic achievements was her visiting fellowship at Harvard University. She is a senior associate of the Cambridge Institute of Sustainability Leadership, a trustee of The Tiger Brands Foundation, Leratong Hospice and the Nelson Mandela Children’s Fund. MARY-JANE MORIFI 62 Chief corporate affairs and sustainability officer Tiger Brands Limited Integrated annual report 2024 17 16 Tiger Brands Limited Integrated annual report 2024 Our executive committee continued as of 30 September 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com This year’s performance is a testament to the strides made in implementing our turnaround strategy. Following the appointment of Tjaart Kruger as CEO in November 2023, and the subsequent new appointments to the leadership team in February 2024, it has been pleasing to see the progress that has been made in developing and delivering the company’s turnaround strategy and embedding a new operating model. Under this more streamlined federated operating model, the company now has six business units with five empowered managing directors reporting directly to the CEO. We have simplified and clarified the roles and interdependencies between the business units and the various enabling functions – marketing and strategy, corporate affairs, manufacturing, human resources and legal – which has improved speed of execution, strengthened accountability at the right level, and delivered valuable cost savings. Delivering on the turnaround strategy As a board, we are excited to have approved Tiger Brands’ recently revised strategy, which is the foundation of the company’s turnaround. The strategy comprises five strategic focus areas aimed at repositioning the company by ensuring cost leadership, reshaping our portfolio, rejuvenating our brands, executing three specific growth platforms, and delivering a superior channel presence. Through this strategy, the company seeks to achieve the following six strategic ambitions: « Achieving revenue growth ahead of inflation with a strong emphasis on restoring volume growth « Returning to double-digit EBIT margins « Restructuring our product portfolio to focus on those categories where Tiger Brands has a clear right to win and repositioning our brand portfolio « Improving our balance sheet returns to achieve a targeted return-on-invested-capital (ROIC) in the short to medium term greater than the weighted average cost of capital (WACC) « Growing ahead of the market by increasing our market share both in terms of volume and value « Consistently improving our position to become one of the top 10 employers across South Africa and the continent, building on our recognition this year as one of the top 20 Top Employers for the first time Across each business units, the new leadership teams have been incredibly active in driving the group’s strategic priorities and working towards achieving these strategic ambitions, with early results of the long-term turnaround strategy already evidenced across most of our operations. Under particularly tough market conditions, Tiger Brands has shown robust recovery, with its market capitalisation up at R42,7 billion and its share price rising over 30%, suggesting strong investor confidence in our rejuvenation activities. Group operating income for the year was up 1%, while headline earnings per share (HEPS) from total operations increased 4%, year-on-year. The company declared a final dividend of 684 cents per share, bringing the total dividend for the year to 1 034 cents per share. Following a review of the group’s performance, in August the board agreed to extend Tjaart’s tenure as CEO for a further three years, through to the end of 2028. This decision is premised on the positive early progress made on the group’s turnaround ambitions, as well as the progress made in embedding the new operating model and embedding an agile, consumer-centric culture that is focused on execution. The decision to extend his tenure will ensure leadership certainty through to 2028 and provide the necessary runway for the group’s succession plans. Board changes As chairman, I am fortunate to have a highly engaged board with a diverse set of business leadership skills, perspectives and deep FMCG industry knowledge, suited to ensuring strong accountability of the executive team. We currently have 36% women representation on the board and are working towards our target of 50%. There have been several changes this year to the board. At an executive level, as announced in last year’s report, Noel Doyle and Deepa Sita both stepped down as executive directors with effect from 31 October and 31 December 2023 respectively. Replacing them, Tjaart Kruger was appointed executive director and CEO from 1 November 2023, and Thushen Govender was appointed as CFO in January 2024. Among the non-executive directors, Cora Fernandez resigned with effect from 10 October 2023, and Gail Klintworth stepped down with effect from 31 May 2024. The board extends its gratitude to Cora and Gail for their service and commitment, and we wish them both well in their future endeavours. Outlook Looking to the immediate future, it is evident that delivering on our turnaround strategy will require significant further dedication and effort given the volatile macro-economic environment, both globally and locally. Globally, we are seeing greater economic fragmentation and policy uncertainty, with the growing trend towards increasing isolationism and protectionism gaining renewed emphasis. There are concerns that the new US administration will lead to further economic uncertainty, with the anticipated introduction of tariffs, and fuel inflation could potentially dampen foreign investment in emerging markets. At the same time, the ongoing conflicts in Ukraine and the Middle East and rising trade barriers between the US, China and the EU are impacting global trade routes and contributing to heightened price volatility in food and energy prices. This volatility is exacerbated by the increasing incidence and intensity of climate-related events, which had a material impact this year on the pricing and availability of some of Tiger Brands’ key inputs, such as cocoa beans, small white beans and tomatoes. In South Africa, the smooth transition to a Government of National Unity (GNU) was well received by global markets, reflecting confidence that the new coalition government will result in positive economic policy measures, help to combat corruption and stimulate greater private sector investment in addressing some of the country’s significant infrastructure challenges. This positive sentiment has been further boosted by a reduction in interest rates and a sustained period without loadshedding. Collectively, this has contributed to an improved economic outlook for the year ahead, with some economists anticipating GDP to grow to around 1,2% and inflation to ease to less than 4,5%. Despite this improved outlook, we should not underestimate the extent of the country’s-socio economic challenges – including rail, road and port infrastructure, high unemployment, consumer debt levels and restrained wage growth – all of which will continue to place significant pressure on consumers. This context underscores the need for a continued strong focus on driving cost leadership, focusing on affordability as a growth platform and significantly strengthening our presence in the general trade segment. Listeriosis class action The 2018 listeriosis outbreak affected many South Africans. We are saddened by the impact which listeriosis had and continues to have on the lives of the victims and those who have lost loved ones from the outbreak. I would like to reiterate our commitment to working diligently to bring the listeriosis class action to a close as quickly as possible. Acknowledgements I wish to thank my colleagues on the board for their valued support and advice during another challenging but rewarding year. On behalf of the board, I would like to thank Tjaart and his team for their vision and leadership in developing and driving the new turnaround strategy, and all Tiger Brands’ employees for their dedication in contributing to the effective execution of this strategy. As the board, we are confident that the company is back on the path to building long-term shareholder value. Geraldine Fraser-Moleketi Chairman December 2024 Tiger Brands has shown robust recovery under particularly tough market conditions, with share price appreciation over the past year suggesting investor confidence in our turnaround strategy. This underscores the need for continued strong focus on driving cost leadership, focusing on affordability as a growth platform, and significantly strengthening our presence in the general trade segment. Tiger Brands Limited Integrated annual report 2024 19 18 Tiger Brands Limited Integrated annual report 2024 Chairman’s review GERALDINE FRASER-MOLEKETI: Chairman Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com The impact of our dedicated focus this year on cost leadership, driving affordability as a growth platform, rationalising our product and brand portfolio, and ensuring a superior channel presence, is evident in the pleasing signs of a second half turnaround in Bakeries, Culinary and Grains. This year’s performance gives me confidence that we are on track to deliver on our turnaround strategy. Financial and operational performance This year, total revenue increased by 1% to R37,7 billion, reflecting the combined impact of a challenging operating environment, price inflation of 7% and overall volume declines of 6%. The reduced volumes in certain categories are a result both of deliberate pricing correction initiatives as well as the heightened competitive pressure that is driving our renewed strategic response. Our cost savings drive, countered by high input cost inflation, contributed to a credible recovery in gross margins to 28,3% from 27,7% last year. We are pleased to report that our various initiatives to reduce working capital have proved successful, contributing to a reduction in net working capital balances, an improvement in our cash conversion and an associated reduction in net debt, moving us into a net cash position by year end. Group operating income (before impairments and non-operational items) was marginally ahead by 1% to R3,1 billion. Earnings per share were up 13% to 1 942 cents per share, while headline earnings per share increased to 1 810 cents per share. Revised strategy and operating model Immediately after taking over as CEO in November last year, I undertook a detailed review of Tiger Brands’ operating model and organisational structure, with the aim of addressing some of the identified challenges within the business and restoring the company to deliver on its full potential. Following this review, the board approved a new federated operating model – comprising six business units led by empowered managing directors – aimed at improving speed of execution and enhancing accountability by decentralising decision-making and streamlining the ways of working across the different businesses. To bring in fresh leadership, we appointed five managing directors to the Exco team with effect from 1 February 2024, each of whom has shown initial positive results in delivering on our turnaround plan. These six business units are supported by our functional executive committee members and their teams, which include legal, corporate affairs, marketing and strategy, manufacturing and human resources. Under this new operating model, we have simplified and clarified the roles and interdependencies between business units and support functions, ensuring greater cohesion across the organisation. To encourage a more hands-on culture of decentralised decision-making, we have relocated the management teams to the operations, strengthening accountability and unlocking annualised cost savings. During the year, the board approved our revised strategy, with five strategic thrusts and associated strategic enablers aimed at delivering on a clear set of strategic ambitions relating to growth, profitability, balance sheet returns and people. We have also refined Tiger Brands’ vision, prioritising our activities more specifically on southern Africa, sharpening our consumer goods focus, placing the consumer more explicitly at the centre of everything we do, and targeting our portfolio on the most accessible loved brands, recognising the critical importance of driving affordability and availability in an increasingly constrained consumer environment. We have made pleasing progress this year on our five strategic thrusts: « Shaping our portfolio of the future: Informed by a thorough analysis of the South African market, we have reviewed our product categories, brands and SKUs, and are rebasing our business to prioritise those categories where we believe Tiger Brands has “the right to win”. We have identified specific categories to exit and are pursuing opportunities for entry in adjacent categories, where we see valuable synergies, a growing market and/or higher margin potential. We have made good initial progress this year in implementing our portfolio optimisation strategy, with successful disposals of certain non-core Home and Personal Care brands and various other portfolio rationalisation processes gaining traction. « Cost leadership: Cost leadership and driving margin improvement is an important foundation of our business transformation journey and essential in delivering growth in a subdued market where most consumers are trading down and where top brands cannot always attract the quantum of premiums they enjoyed previously. We are continuing to make positive progress in improving operating margins through a range of structured initiatives aimed at delivering cumulative savings of R500 million by FY26. These initiatives include investing in plant efficiencies and automation projects to reduce conversion costs and wastage, rationalising our brands and SKUs, leveraging product and packaging specifications to optimise value through value engineering, improving our sourcing and purchasing of commodities, and optimising our warehousing, dispatch and route management activities. « Rejuvenating our brands: Following a structured assessment of the performance of Tiger Brands’ existing brands, we have sharpened our brand portfolio into 10 “power brands” and 6 “specialist brands” where we see the greatest ability to create further value. We have identified specific opportunities to migrate and divest the balance of our brands and will be rationalising our brand portfolio, to enable focused marketing and brand investment. « Executing our growth platforms: In response to the current highly dynamic consumer and competitor environment, we have retained our focus on three key growth platforms aimed at securing broader consumer and shopper relevance and ensuring longer-term success: driving affordability, democratising health and nutrition and over-indexing on snackification. This year, we launched various new innovations and renovations in each of the growth platforms across our product portfolio and we have approved a pipeline to deliver further growth. « Superior channel presence: Recognising the recent rapid growth rates in the general trade segment, we are looking to boost our brand presence across this segment by increasing brand availability and visibility and strengthening our customer engagement. We made good progress this year on our targets, reaching more than 91 000 general trade stores and employing more than 300 sales representatives from local communities. We are also continuing to realise opportunities to lead in the e-commerce space, strengthen our southern Africa market growth and develop more tailored channel strategies informed by a detailed understanding of different shopper profiles. These five strategic thrusts are supported by our critical enablers: igniting our people, embedding our new federated operating model, delivering game-changing innovation, ensuring competitive digital capabilities and manufacturing operations, and promoting sustainable agricultural sourcing. While each of these enablers is important – and reviewed in more detail elsewhere in the report – there are two enablers that I wish to highlight. « Firstly, there is the critical importance of mobilising Team Tiger and embedding an agile, consumer-centric culture across the organisation, ensuring that everyone is aligned and engaged in executing our strategy and our new federated operating model. While we have made valuable progress this year and put the right systems in place, this requires continued dedicated focus and leadership engagement. « Secondly, there is a growing imperative to address South Africa’s food security challenges and decrease our dependence on imported raw materials, including in particular wheat and small white beans. Addressing this effectively in particular peanuts, sorghum, oats and small white beans will require strong partnerships with local farmers to encourage more sustainable farming practices and ensure their resilience in the face of increasing competitive and climate-related pressures. The listeriosis class action Since the decision of the Supreme Court of Appeal was handed down on 4 February 2022, the parties have continued with pre-trial preparations, including discovery of documents and records relevant to the class action as required in terms of the rules of court, to get the matter ready for trial for the court to determine liability. A trial date will be set by the court once all these pre-trial preparations have been fully attended to. As part of our efforts to expedite resolution of the class action, in January 2023 the attorneys representing the In taking on my role as CEO of Tiger Brands a year ago, it was evident that the culture needed a reset. The major contribution to this would be changing the operating model and getting the business to focus on the basics again. Despite a tough operating environment, we have seen encouraging progress on the turnaround initiatives. Tiger Brands Limited Integrated annual report 2024 21 20 Tiger Brands Limited Integrated annual report 2024 TJAART KRUGER: Chief executive officer Chief executive officer’s statement Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com company and its insurers (the company’s attorneys) and the plaintiffs’ attorneys (Richard Spoor Inc.) jointly approached the National Institute for Communicable Diseases (NICD) for access to their records relevant to the listeriosis outbreak. These records are vital to a determination of liability. In January 2024, the NICD released the so-called FASTQ files with some data relating to their investigation of the listeriosis outbreak to the plaintiffs’ attorneys. The files were shared with the company’s attorneys in February 2024 for review by their appointed experts. The experts’ review of the data is at an advanced stage but remains ongoing. The company’s attorneys have engaged with the plaintiffs’ attorneys with a view to agreeing on relief to qualifying individuals who have urgent medical needs, regardless of the fact that liability has not yet been determined. In addition, the legal representatives are engaging on measures to arrive at a speedier resolution of the class action overall. We are committed to working diligently to bring the listeriosis class action to a close as quickly as possible. Tiger Brands has product liability insurance cover appropriate for a group of its size. Coverage is subject to the terms and limits of the policy. Outlook This year’s robust performance has been achieved in the context of a particularly dynamic trading environment, characterised at a global level by high levels of geopolitical uncertainty, and at a regional and local level by profound socio-economic challenges, including high inflation and increasing youth unemployment. Although there are some positive economic signs globally – such as the reduction in inflation and interest rates, and steady GDP growth rates – the outlook remains highly uncertain. The conflicts in the Middle East and Ukraine continue to pose risks to global energy supplies and trade routes, contributing to increased shortages and price volatility in essential commodities. This volatility is being exacerbated by the frequency and severity of extreme weather events that are increasingly affecting agricultural supply chains. In South Africa, business and investor sentiment has responded positively to the establishment of the Government of National Unity (GNU), the cessation of loadshedding and the decline in inflation and interest rates. This positivity is reflected in an increase in foreign direct investment and evidence of a recovery in consumer confidence, with retail trade sales in the last quarter ahead of economists’ forecasts. While I am cautiously optimistic that the recent structural reforms will gain momentum and boost growth rates, we cannot ignore the country’s structural challenges, such as its infrastructure and logistics challenges, crime and corruption, and high unemployment, particularly among the youth. Addressing these challenges will require significant leadership and commitment as well as sustained levels of cooperation within the GNU and between government and the business community. Despite these various challenges, I am confident that we are on track to achieve our long-term turnaround strategy and successfully reposition the company to deliver on our purpose, vision and strategic objectives. To help realise these objectives, my top five priorities for the year ahead are to: « Bed down our operating model « Drive cost leadership « Place consumers at the heart of everything we do, responding to their needs by providing quality, affordable products « Deliver on what we have promised « Get Team Tiger back to winning This has been a rewarding first year as CEO of Tiger Brands. I wish to extend my appreciation to my colleagues on the leadership team for their support and dedication, and to all of Tiger Brands’ employees who are responding to the challenges we have set for ourselves: to make bold choices, execute fewer actions and move the performance needle, doing it right, first time, every time. Finally, I would like to thank the board for their advice and support, and for their confidence in extending my tenure for a further three years. Tjaart Kruger Chief executive officer December 2024 Tiger Brands Limited Integrated annual report 2024 23 22 Tiger Brands Limited Integrated annual report 2024 Chief executive officer’s statement continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Significant impacts (positive and negative) include: « Consumer nutrition and food security « Employment (direct and indirect) and associated benefits « Development of small businesses « Natural resource use and habitat impact from raw materials « Energy and water use in manufacturing operations « Food and packaging waste « Government tax revenue « Financial returns to shareholders « Investment in infrastructure, plant and equipment Our products (outputs) « Milling & Baking « Culinary « Grains « Home, Personal Care & Baby « Snacks, Treats and Beverages Read more on page 72 Growth opportunities Our value chain activities « Opportunities in accessing informal market ( page 58) « Changing consumer expectations on affordability, nutrition, accessibility ( page 56) « Improved consumer-centric product and brand portfolio ( page 51) « Rejuvenating our brands ( page 54) Tiger Brands creates value and delivers on its purpose by producing, marketing and distributing everyday branded food, home and personal care products, predominantly in South Africa with a growing market presence across Africa. Our core category is food with immediate adjacencies in beverages, snacks and treats. Our product portfolio is well placed to grow our presence in most categories and markets through further innovation and in organic opportunities. 1. Evolving trading environment 2. Declining cost competitiveness 4. Cyber security threats 5. Changing consumer preferences 3. Food safety Material risks 6. Digital transformation pace 7. Security of supply including third parties 9. Policy uncertainty 10. Volatility of agricultural crop supply 8. Inadequate services (electricity, water and fuel) Marketing and branding Supporting these activities with our strategic marketing and branding initiatives, and our corporate social investment (CSI) activities Research and development Monitoring consumer tastes and trends and investing in product and process, research and development, to maintain a leadership position Procurement Procuring raw materials, ingredients and packaging from local and international markets Packaging and logistics Packing our products in branded packaging and distributing these products as efficiently as possible to consumers through a network of customers that include retailers, wholesalers and the general trade Manufacturing Converting raw materials into quality food, home and personal care products, using Tiger Brands’ proprietary formulations Read more on page 40 Our most significant cost streams are: « Raw material procurement « Employee wages and benefits « Sales and distribution expenses « Food quality and safety « Marketing expenses « Electricity and fuel « Maintenance and upgrading of plant and equipment « Regulatory compliance costs Material cost differentiators « Our vertical supply chain « Standardisation and simplification of group processes, systems and practices « Decentralised procurement of unique materials « Centralised procurement of group-wide materials, leveraging economies of scale Our cost streams Our revenue streams comprise product sales from: « Milling & Baking (22%) « Culinary (24%) « Grains (23%) « Home, Personal Care & Baby (10%) « Snacks, Treats and Beverages (15%) « International (6%) Material revenue differentiators « Long-standing market-leading position in branded food and beverages « Our 10 “power brands” and 6 “specialist brands”, many of which are ranked first or second in their categories « Robust marketing strategy, ensuring our brands remain top-of-mind, supported by targeted investment « Far-reaching distribution capabilities « The strength and quality of our customer relationships « Strong consumer insights informing our category strategies Our revenue streams Tiger Brands’ cost base is highly sensitive to exchange rate volatility with ~70% of our costs directly or indirectly exposed to exchange rates. Price/volume management is therefore a key strategic lever. Variable Impact* R million Forex (sensitivity to 5% weaker rand) Domestic operations** (305,0) International and associates translation 59,7 Exports (93,2) Price increases Effect of a 1% movement in price increases Up 328,1 Down (328,1) Volume growth Effect of a 1% movement in volume growth Up 305,8 Down (305,8) Logistics*** R1 increase per litre of fuel (R25,0) * Impact on operating income ** Assumes no recovery in price *** Excludes Bakeries Sensitivity analysis Tiger Brands Limited Integrated annual report 2024 25 24 Tiger Brands Limited Integrated annual report 2024 Our business model Our outcomes Value out « Employees and trade union partners « Customers « Consumers « Government « Investors « Suppliers « Communities « Media Read more on page 30 Significant relationships HC Experienced, diverse leadership team and skilled employees, underpinned by strong governance structures NC Reliable and sustainable access to primary agricultural products (including wheat, rice, maize, oats, sugar and sorghum), other ingredients, packaging, electricity, fuel and water MC Well-capitalised manufacturing plants, supported by efficient and effective supply chain, distribution and logistics networks SRC Strong and trusted corporate brand, positive supplier and customer relations, and constructive relationship with government, regulators and host communities IC Continuous investment in our brands through research and development, marketing investment and innovation informed by strong consumer insights FC Access to financial capital, through strong cash generation and enhanced by superior investor returns and sustained market confidence Read more on page 26 Necessary resources Trends impacting value: « Continuing macro-economic uncertainty, globally and locally « Shifting customer and consumer dynamics « A changing competitive landscape « Climate change and sustainability- related pressures Read more on page 34 Our operating environment Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Our relationships (SRC) Material inputs Our actions to sustain value Outcomes of our activities « Engaged workforce « Constructive relationship with government « Investor confidence « Trusted brands and strong consumer reputation « Positive supplier and customer relations « Robust operating context and strong levels of institutional trust « Investment in employee value proposition « Structured engagement with regulators; focus on compliance and societal contributions « Regular investor communication « Investment in product safety and quality « Product and process innovation « Active engagement with suppliers and customers « Trading terms that are fair, equal and available to all customers Generally positive relations across stakeholder groups, reflected by: 5 7% reduction in consumer complaints 5 R14,3 billion B-BBEE supplier spend 5 R54 million spend to support black farmers and small businesses 5 Year-on-year HEPS growth of 4% 5 Year-on-year dividend growth of 4% Continuing concerns in certain areas 4 Pending listeria class action lawsuit – with recent increased media focus Challenges in securing inputs « Finding the right balance in addressing the sometimes competing interests of stakeholders, each of whom add value to the company Our people (HC) Material inputs Our actions to sustain value Outcomes of our activities « Strong and diverse board « Experienced executive team « 8 785 permanent employees « Enabling workplace environment with performance- and purpose-led culture « Implementing people strategy to attract, retain and develop a diverse talent base, with strong leadership capacity « Invested in employee reward and personal development opportunities 5 R4,8 billion on salaries and benefits 5 R73,5 million on employee training and development (SA only) « Focus on diversity and employment equity « Embedded enhanced employee wellbeing programme (THRIVE) Investment in talent and personal development 5 Accelerated core capability in manufacturing, customer, marketing and R&D 5 Launched accelerated leadership development programme Progress in promoting employee diversity 5 64% ACI representation at senior management and 58% at top management 5 40% female representation at senior management and 25% at top management Board diversity 5 45% black (South African) and 36% female on our board 5 Directors with extensive FMCG knowledge, global experience and skills in digitalisation and innovation Improvements in employee health and safety 5 One work-related fatality (2023: one) 5 0,19 lost-time injury frequency rate (2023: 0,25) Challenges in securing inputs « Technical skills shortages « Changing employee career expectations and priorities « Increasing emigration from South Africa « Increased cost of attracting and retaining skills « Company underperformance in recent years Our brand, reputation and company culture (IC) Material inputs Our actions to sustain value Outcomes of our activities « Established strong brand and reputation « Unique product formulations and trusted recipes « Research and development capacity « Internal governance and business systems « Company culture « Focus on innovation and renovation to meet consumer needs including on value, health and nutrition, convenience, e-commerce and sustainability « Deploy marketing best practice toolkit across the business « Drive relevance in value segment by building clear benefits of current brands and introducing tiered offerings Sustained a strong brand presence 5 Most of the 10 “power brands” and 6 “specialist brands” maintained their brand equity 5 Continued to deepen our ability to offer local brands with local flavours, leveraging cross-brand collaborations to offer consumers more of what they love 5 22 awards Innovation 5 Completed 48 innovation projects across our consumer growth areas 5 Innovations were focused on driving relevance and affordability for consumers Challenges in securing inputs « Constrained consumer environment favouring affordability over brand « Increased retailer concentration and growing role of private label « High prevalence of promotional activity Our manufacturing capacity (MC) Material inputs Our actions to sustain value Outcomes of our activities « 37 manufacturing facilities (including Chococam in Cameroon) « Efficient logistics and distribution activities « R0,97 billion capital expenditure in manufacturing and distribution capability and technology « 4,9% improvement in overall equipment effectiveness (OEE) in focus sites over past three years « R200 million in cost savings through continuous improvement initiatives Continued investment in plant and equipment 5 Expanded capacity optimising efficiency upgrading infrastructure and realising innovation opportunities 5 Key initiatives included: + Aerosol line + Peanut butter move + Jungle flaker plant Some challenges remain 4 High agricultural and other input cost inflation 4 Short supply of certain ingredients resulting in factory under- recoveries Challenges in securing inputs « Infrastructure challenges: electricity, water and sanitation, and rail and port networks « Shortage of required technical skills to run and maintain plant « Adverse weather patterns such as flooding Tiger Brands Limited Integrated annual report 2024 27 26 Tiger Brands Limited Integrated annual report 2024 How we sustain value Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Our financial strength (FC) Material inputs Our actions to sustain value Outcomes of our activities « Equity « Borrowings « Cash generated from operations « Implementation of fit-for-future operating model with decentralised decision-making close to the operations « Continued operational efficiency drive « Corporate governance structures « Continued acceleration of portfolio optimisation plans « Guiding principles in response to the growth of private label 5 15,3% return on invested capital (ROIC) (2023: 15,1% (restated)) (2023 reported: 14,7%) 5 R299 million paid in net interest (2023: R238 million) 5 R5,5 billion cash generated from operations (2023: R2,7 billion) 5 Savings of R200 million (2023: R525 million) 5 Total dividend per share declared: 1 034 cents (2023: 991) 5 16,8% return on equity (2023: 15,8% (restated)) (2023 reported: 15,7%) Challenges in securing inputs « Rising interest rate cycles « Underperformance resulting in higher cost of capital Invested capital adjusted to exclude re-instated goodwill on discontinued businesses Our raw material inputs (NC) Material inputs Our actions to sustain value Outcomes of our activities « Local and imported raw material ingredients « Water (municipal and own borehole) for production « Fuel (diesel and petrol) for distribution and manufacture « Energy for manufacturing (primarily Eskom electricity) « Fertile soil and conducive agricultural conditions « Energy and water efficiency measures « Investment in renewable energy to strengthen energy security and reduce carbon footprint « Innovations and partnerships to reduce packaging and food waste Some progress in mitigating impacts 5 9,1% reduction in direct GHG emissions 5 0,9% reduction in GHG emissions intensity 5 6,0% reduction in absolute energy use 5 2,7% increase in electrical energy intensity 5 5,0% reduction in absolute water use 5 3,7% increase in water-use intensity 5 26,4% reduction in waste to landfill intensity Challenges remain in certain areas 4 The global food system is recognised as having a significant impact on biodiversity and habitat loss, climate change and packaging pollution, placing direct pressure on the resources we depend on and increasing consumer and regulatory practices Challenges in securing inputs « Climate change and extreme weather events impacting quality, quantity and cost « Supply disruptions in certain key inputs « Inefficiencies in South African ports resulting in delays Tiger Brands Limited Integrated annual report 2024 29 28 Tiger Brands Limited Integrated annual report 2024 How we sustain value continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com We have a structured stakeholder relations strategy in place to ensure a consistent and proactive approach to engagement across the group. In the table below we identify those stakeholder groups that have a material impact on our ability to create value, briefly outlining their contribution to value creation, our means of engaging with them, and each stakeholder group’s primary interests relating to our business activities. Although we appreciate that there is often substantial diversity of perspective and interest within each group, we believe that the interests listed below are a sufficiently accurate reflection of each group’s most material interests regarding Tiger Brands’ activities and performance. We do not rate the quality of our relationships with each stakeholder group, as we do not believe it is possible or useful to generalise the quality of this relationship across an entire stakeholder group; the nature of these relationships can vary significantly between specific members within each stakeholder group, between different divisions within the company and the stakeholders, and between different times throughout the year. Provide the capability, experience and innovation required to deliver on our business strategy Our retail and wholesale customers provide consumers with ready access to our products By purchasing our products and believing in our brand, they provide the basis for revenue growth How we engage employees « CEO engagements « Virtual and in-person townhall meetings with employees « Internal company website « ROAR app designed for employee engagement « Employee hotline « Site engagements « Focus groups « Notice boards and digital signage « Employee resource groups and communities How we engage customers « Senior leadership engagement (top-to-top) to align on business priorities, joint corporate initiatives and optimised trading practices « Annual trading term negotiations to agree on shared growth ambitions and associated strategic business levers and investments to achieve set performance objectives « Joint category development planning to identify shared growth opportunities and agree joint action plans and investments « Regular action planning meetings to execute business plans, respond to tactical dynamics and resolve operational issues to achieve our joint performance targets « Routine business review sessions to identify and address performance shortfalls as well as take advantage of new opportunities How we engage consumers « Tiger Brands website « Promotional activities and competitions « Information on our packaging « Research, including continuous engagement via consumer communities, online and offline qualitative studies, immersions, visual diaries and preparation « Neuroscience to identify implicit behaviour in-store and communication engagement « Consumer care line « Multi-channel approach as well as integration of online and offline channels to provide a seamless user engagement experience « Cooking shows and blogs « CSI activities, community programmes and feeding schemes What is important to employees « Talent and career development « Remuneration and rewards « Work-life balance « Safety, security and wellbeing « Strong internal engagement processes « Cross-functional teamwork and collaboration « Recognition and feedback « Opportunities to innovate and challenge the status quo « Speed and visibility of decisions What is important to customers « Trading terms and promotional pricing that are fair and equal, and that promote mutual profitable growth « Innovation, commercially attractive brand propositions, and marketing campaigns that appeal to their shoppers and drive profitable basket conversion « Operational systems and ways of working that enhance logistics and administrative efficiencies facilitating cost-effective speed to market and continuous supply « Stock availability and service levels « Competitive pricing « Promotional support What is important to consumers « Affordable value-for-money tasty nutrition « Innovative products not reliant on energy supply « Healthier choices « Food safety and product quality « Convenience « Business leadership on social, economic and environmental issues Employees Customers Consumers Responding to employee interests « Our people strategy and operating model seeks to address each one of our employee issues directly « Employee feedback is solicited through our Voice of Tiger engagement and employee experience survey and pulse, which is conducted across all our sites in six languages « Specific actions to address key feedback areas « Fit-for-purpose people processes focusing on talent, capability development, leadership, rewards, wellbeing, engagement and culture « Our THRIVE employee wellbeing programme directly supports employees and their families by proactively managing their physical, emotional and mental wellbeing « Tiger Trolley, a digital staff shop, is a direct response to employee needs in a socio-economically challenged environment Responding to consumer interests « Tiger Brands’ portfolio aimed at democratising nutrition and driving affordable solutions through our iconic brands « Democratising health and nutrition through education of current offerings, tiering of relevant consumer benefits and innovation « Leveraging price pack architecture to provide consumers “more for less” and more affordable packaging formats « Through inter-department collaboration between the Consumer Contact Centre and Tiger Brands Quality Teams, product complaints have decreased by 7% year-on-year « Unconstrained localisation and sensory platforms to enable agility and innovation speed-to-market « Publish the Eat Well Live Well nutritional programme’s Family Food Matters behavioural science study report « In-house sensory testing capability Responding to customer interests « Alignment of business priorities and commitment to shared growth ambitions and action plans « Collaborative cross-functional projects/initiatives to address prioritised business imperatives « Tailored solutions and campaigns in support of customer-specific growth opportunities and initiatives « Sharing of market/shopper research and knowledge to better inform business and category growth strategies « Proactive performance reviews that identify competitive growth opportunities and risks coupled with ideas and proposals « Utilising the Tiger Basket to drive value-adding promotions through combos Tiger Brands Limited Integrated annual report 2024 31 30 Tiger Brands Limited Integrated annual report 2024 Our key relationships Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Provide the regulatory framework and informs the socio-economic context essential for our activities Provide the services and raw materials that form the basis of our products and activities Provide the financial capital needed for long-term growth Provide the social capital and licence to operate for the business to succeed How we engage government « One-on-one engagements « Engagements on draft regulations « Public forums « Industry consultative bodies « Parliamentary processes « Bilateral business forums « Site visits How we engage suppliers « Supplier forums « Site visits « Supplier assessments « Supplier relationship management via digital platforms « Supplier satisfaction surveys How we engage investors « Annual and interim reports « Presentations « One-on-one meetings, non-deal roadshows, investor conferences « Site visits and themed investor days « SENS announcements « Dedicated investor relations function and mailbox « Website How we engage communities « Community NGO implementation partners « Community social mapping to identify opportunities to share value « Community mobilisation and interaction on SED and ESD projects « Collaborative partnerships with industry peers « Site level steering committee made up of representatives from the municipalities, community representatives and representatives from the Tiger Brands site What is important to government « Job creation and preservation « Economic development and growth of the township economy « Food safety and quality « Consumer nutrition and health « Delivering on broad-based black economic empowerment (B-BBEE) « Fostering growth and development of local agricultural sector « Contributing to relevant UN Sustainable Development Goals What is important to suppliers « Timely payment and fair terms « Collaboration and partnering « B-BBEE commitments « Enterprise and supplier development « Health and safety standards « Ease of doing business through self-service portals What is important to investors « Evidence of an effective turnaround « Performance of key segments « Visible execution of strategies in an increasingly constrained consumer environment and growing retail concentration « Cost of one-off items and resultant value destruction « Enhanced returns and cash flows « Impact of skills shortages on ability to attract and retain talent « ESG performance What is important to communities « Food security and related nutrition issues « Stimulate economic activity to support and sustain community enterprise development and job creation « Impact of our operations on host communities « Employment and business opportunities Government Suppliers Investors Communities Responding to government interests « Robust safety systems in place supported by academic partnerships and consumer campaigns « Public private partnerships to revitalise the economy (such as the Agri Processing Master Plan) « In-school breakfast programme in partnership with The Tiger Brands Foundation and the Department of Basic Education « Investment in B-BBEE-verified suppliers and promotion of socio-economic development « Internal drive to ensure representation at executive and management level « Investment in skills development « Active partnerships to promote agri-sector development and smallholder farmers « Engage on draft policy and legislation Responding to supplier interests « Negotiate with strategic suppliers to secure requirements « Collaborating with Tiger Brands’ Enterprise and Supplier Development programme to diversify the supply base with a focus on black-owned and black women-owned suppliers « Engage key suppliers to drive procurement efficiencies and improve B-BBEE commitments « Reviewed supplier quality programme being rolled out in line with enhanced internal quality protocols « Utilise technology to enhance communication and administrative channels « Develop category strategies to work with suppliers beyond a price focus Responding to investor interests « Clearly articulate turnaround strategies to rectify the performance of Milling and Baking, Grains and Culinary « Supplemented investor engagements and increased contact with divisional leadership « Evidence of dedicated resources to accelerate execution of value engineering initiatives and value propositions « Provide bi-annual updates on underlying progress that will enable turnaround and consequential talent acquisition and retention « Introduction of governance and remuneration roadshows to create a dialogue, giving confidence to our shareholders while contributing to better informed board deliberations « Comprehensive disclosure and updates on ESG including mitigating strategies Responding to community interests « Partner with government, industry peers and developmental agencies to promote nutrition, health, education and contribute to community development and poverty alleviation « Initiatives in place on enterprise and supplier development and community investment « Addressing environmental impacts of our operations on our host communities Tiger Brands Limited Integrated annual report 2024 33 32 Tiger Brands Limited Integrated annual report 2024 Our key relationships continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Global « This year, the global economy is projected to grow steadily at 3,2%, with the advanced economies anticipated to achieve 1,7% growth and emerging markets around 4,2% growth. The US and European economies are both forecast to see a slight slow-down – to 1,4% and 1,2% respectively – while China's growth is projected to moderate to 4,7% amid various global and domestic headwinds. Globally, there has been a steady decline in inflation, from 6,8% in 2023 to a forecast 5,9% for 2024, reflecting an easing on supply constraints and labour shortages, and a fall in energy prices. « Despite some positive economic signals, there remains significant uncertainty in the broader geopolitical environment, with the escalating conflict in the Middle East, the ongoing war in Ukraine, and the intensifying rivalry between the US and China, all posing risks to global energy supplies and trade routes and contributing to increased shortages and price volatility in essential commodities. The availability and pricing of raw materials has also been impacted by the increasing incidence and severity of extreme weather events. « Consumer disposable income remains under pressure, reflecting consumers’ concerns with the rising cost of living, job insecurity and high debt levels. Around 18,2 million South Africans live in extreme poverty, and the country has among the highest unemployment rates globally, officially recorded as 33,5% in Q2 2024. Although food price inflation has eased from its 14% peak in March 2023 – driven largely by Russia’s invasion of Ukraine, a major grain producer – to around 4,5% at financial year end, there are concerns this may pick up due to expected declines in certain food commodities following extreme weather events and a declining exchange rate. « Despite these challenges, latest data shows that the performance of the South African retail sector is beating expectations, pointing to some recovery in consumer confidence. Retail trade sales increased by 4,1% year-on-year in June, up from 1,1% in May and 0,7% in April, and ahead of economists’ forecasts of between 0,9% and 1,1%. « The country’s short-term economic outlook remains uncertain. Although some economists see the recent structural reforms gaining momentum, prompting a decisive shift upwards in growth rate, others are more cautious given the country’s deep structural challenges, including its infrastructure and logistics bottlenecks, high unemployment, persistent crime and corruption, and challenges at local municipalities. Regional « Our markets across sub-Saharan Africa are expected to show moderate economic improvement this year, with average GDP growth rising from around 3,6% in 2024 to around 4,2% in 2025. While inflation rates have generally eased across the region, food price inflation remains a concern, reflecting climate-related and global supply chain disruptions. These markets continue to face some significant macro-economic challenges – including growing youth unemployment, high levels of income disparity and continuing political instability – with the political landscape undermined in many countries by mismanagement, corruption, political intolerance and popular protests. « The economic outlook for the region remains fragile, with risks including geopolitical instability, climate change impacts, high public debt levels and the potential for renewed food insecurity, all of which could undermine growth prospects. « This general uncertainty is compounded by evidence of increasing economic fragmentation – characterised by rising populism and a growing trend towards protectionism that is leading to trade and investment flows being redirected along geopolitical lines. South Africa « South Africa’s GDP growth is projected to be 1,2% for 2024, reflecting a recovery in growth on the prior year. Local markets have responded positively to the formation of a Government of National Unity in June 2024, with the strengthening of the rand against the dollar and an increase in foreign direct investment amid expectations of economic reform and market-friendly policies. This positive sentiment has been boosted by the cessation of loadshedding, and a sharp decline in inflation, with the Reserve Bank confident that it will hit its targets this fiscal year, and with some observers hoping that South Africa will exit the Financial Action Task Force grey list in 2025. Our strategic response « In the context of a subdued economic outlook – and given our exposure as a premium-priced brand in staple products – we have strengthened our focus on executing operational efficiencies and delivering a step-change in our innovation practices and in the nature of our consumer and customer engagement. « To drive competitive manufacturing, we have made further investments in improving our manufacturing operations – expanding capacity, optimising efficiency, replacing aging equipment, upgrading infrastructure and realising innovation opportunities. « In seeking to alleviate some of the underlying socio-economic challenges facing South Africa, we are continuing in our efforts to boost economic opportunities and improve the livelihoods of thousands of people across our value chain through a deliberate focus on supporting black-owned and black women-owned enterprises and farmers as part of our enterprise and supplier development activities and our preferential procurement practices. « In response to the increasingly challenging geopolitical landscape and growing supply chain vulnerabilities, exacerbated by changing weather patterns, we have continued with various initiatives aimed at mitigating supplier risk, ensuring seamless supply chain continuity and managing inflationary pressures. Our operating environment continues to be impacted by high levels of geopolitical uncertainty globally, as well as profound socio-economic challenges in South Africa and across our African markets. Our ability to create value as a business, and to deliver on our purpose, is affected by the changing dynamics in our external operating environment. We have identified four interconnected trends that are having a material impact on our business model and that continue to inform our strategic response: Each of these trends bring challenges and opportunities, highlighting the critical importance of having the right skills, operating processes, leadership and culture to ensure Tiger Brands’ continued resilience and growth. Continuing macro-economic uncertainty, globally and locally Shifting consumer and customer dynamics A changing competitive environment Increasing sustainability- related pressures 1. 2. 3. 4. South African prime interest rate (%)* 10% 7% 7% 9,75% 11,75% 11,50% 2024 2023 2022 2021 2020 2019 South African unemployment rate (%) 25% 25% 34% 32,1% 33,5% +8,5% 2024* 2023 2022 2015 2010 * Q2 2024 unemployment rate * Prime interest rate as at 30 September in each year Tiger Brands Limited Integrated annual report 2024 35 34 Tiger Brands Limited Integrated annual report 2024 Our operating environment Continuing macro-economic uncertainty, globally and locally 1. Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Economic strain heightens price sensitivity: In the context of a constrained economic environment – characterised by higher interest rates, input cost inflation, low wage growth and reduced disposable income – consumers are typically shopping less frequently, across fewer categories and at fewer retailers for bigger baskets, with growth biased towards essential categories, and demanding more in terms of affordability, convenience and quality. Although consumer confidence recently received a boost, aided by lower inflation, many are still struggling to cope with the high cost of living, switching to cheaper value offerings, and showing a heightened reliance on promotional pricing and a growing shift to private label, with brand-loyal customers reverting to smaller pack sizes. With heightened price competition, volumes and margins are threatened, and cost recovery ahead of inflation remains a strategic priority. Tighter budgets are driving growth in the informal market, emphasising a need to drive affordability and grow a presence in the general trade segment. Weakening brand loyalty and the rise of private label: We are continuing to see aggressive competitor pricing, as well as increasing sophistication in private label penetration by leading retailers, which is placing increasing pressure on branded product volumes and margins. In 2023, South Africa had the highest rate of trading down by consumers, leading to private label growth, with lower income consumers trading down at two times the rate of high-income consumers. Private label now captures roughly 25% of total sales value in the local food and beverage sector, growing this year at an estimated 12%, against branded product growth of 6% (see page 38 on the growth of private label). Growth in e-commerce: Driven initially by the Covid-19 pandemic, there has been a substantial shift, globally and locally, to e-commerce and online grocery shopping, with digitally savvy consumers increasingly expecting a seamless omnichannel experience. A recent study found that in 2024, online sales grew by 29% in South Africa, while traditional retail sales declined in the same period. This is reflected in the significant uptake of bricks and clicks grocery e-tailers (such as Checkers’ Sixty60 and Pick n Pay’s ASAP), as well as non-grocery platforms (such as Mr D) offering grocery deliveries. There has also been continued growth in Pure Play e-commerce initiatives such as Takealot and the recent arrival of foreign online retailers such as Amazon, Shein and Temu. The e-commerce sector is expanding rapidly, with local revenue predicted to reach the US$7,9 billion mark by 2027. With speed and convenience key competitive advantages in FMCG e-commerce, companies are exploring rapid delivery options, increasingly aided by big data analytics and AI that enable predictive analytics, enhance app-based shopping and streamline distribution. The rise in flexible digital payment solutions is enabling growth across channels and providing an opportunity for integrated loyalty programmes. Changing consumer preferences: South African consumers are prioritising health and nutrition, however, with six in 10 households being food insecure, affordability is becoming increasingly important. Many consumers also have clear preferences rooted in cultural identity, highlighting the value in having product offerings that are localised to the specific market context. Some consumers – mainly in the more affluent segment – are demanding more sustainable products and practices, preferring to buy from brands that are transparent about their supply chains, use sustainable materials and minimise environmental impact. There also continues to be a shift towards smaller, convenient ready-to-eat snacks or mini-meals, often replacing traditional sit-down meals, influenced by busy lifestyles and changing eating habits. A recent report on the state of snacking in South Africa found that while 78% of consumers are feeling the impact of higher food prices, they are still setting money aside for snacks and treats. We are seeing ongoing changes in consumer purchasing patterns, reflecting challenging market conditions, growing digitisation, busier lifestyles and changing aspirations relating to healthier affordable eating and ethical sourcing. Our strategic response « Meeting the needs of the value-seeking consumer is a critical basis for fuelling Tiger Brand’s growth objectives. In responding to the affordability imperative, we have been enhancing the affordability and accessibility of our existing and new product offerings through appropriate pack, price and channel architecture, realising opportunities for product and packaging innovation, and harnessing effective distribution channels, supported by value marketing and consumer engagement campaigns to highlight the value benefits of our current brands. We are sharpening the focus on our core of fewer brands to grow and limit dilution of investment. « We have refreshed our strategy to best defend our product offerings against the increasing threat of private label, by further investing in our brands, building our innovation capabilities, and offering consumers choice through our premium and value offerings. « To capitalise on emerging consumer trends, we are creating a more streamlined two-track innovation process that balances the benefits of agility with more traditional linear product development. This will ensure continued renovation of core products, while encouraging experimentation with higher-risk high-reward innovations to meet emerging consumer preferences where speed-to-market is more important. We have prioritised three growth platforms: driving affordability to meet the needs of value-seeking consumers; democratising health and nutrition; and owning relevant demand spaces in key snacking categories. In doing so, we are placing a strengthened focus on reducing artificial ingredients and leveraging natural and home-grown credentials to differentiate on authenticity and health. « We have continued to drive various initiatives to raise our online presence and become the preferred supplier to prioritised digital commerce partners. We have made further progress this year in each of the targeted focus areas: delivering focused category/brand activity with leading grocery e-tailers, enhancing our online presence through joint strategic initiatives with various platforms scaling up our pilot online shop as a test case direct-to-consumer platform and strengthening our social commerce strategy. Shifting customer and consumer dynamics 2. Consumer summary Our South African consumer continues to experience significant pressure « 39,5% of South Africans receive a social grant « 57,4% of adult South Africans are overweight or obese « 55,5% of households are below the food poverty line*** « One out of nine people are living with diabetes and is the leading cause of death « One out of every five** households in South Africa eat five food groups or less « 42% of South African households are female-headed « 44%* of South African households eat undesirable foods/cut back on meal size/ number of meals eaten/runs out of food « Gender pay gap persists in South Africans with females earning 20% less than their male counterparts Source: National Food and Nutrition Report February 2024; Stats SA Non-communicable diseases report in South Africa 2023; University of Pretoria “Diabetes is an escalating public health crisis in South Africa” Aug 2024; PMB Household Affordability Index report 2024 July * Food insecure = Moderate to high challenges to access food ** 19,2% of households have medium to low food diversity *** Amount of money that an individual will need to afford the minimum required daily energy intake Tiger Brands Limited Integrated annual report 2024 37 36 Tiger Brands Limited Integrated annual report 2024 Our operating environment continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com New market entrants: With Africa having one of the fastest growing populations globally, and with an increasingly young and urbanising population, the region presents an exciting opportunity for new market entrants. This includes the arrival of global food companies and online retail players, such as Amazon, Shein and Temu, as well as the emergence and growth of local and regional food producers and retailers. Shifting competition among retailers: The rapidly changing consumer dynamics ( reviewed on page 45) has intensified competition across the food sector, with food producers, retailers and wholesalers looking to defend and grow market share by being more precise and deliberate in their consumer engagement strategies. Retailers are strengthening their analysis of shopper behaviour and leveraging improved data on consumer spend (accessed for example through loyalty programmes), enabling more accurate personalisation and targeted value offerings at scale. Rise of private label: With consumers under pressure, retailers are actively promoting private label goods with the aim of further differentiating themselves, increasing customer loyalty and ensuring greater control over pricing and positioning. In doing so, some retailers are diversifying their private label from entry-level offerings to a new generation of premium products with both quality and value, competing head on with traditional premium-priced brand offerings. Private label now captures roughly 21% of total sales value in the South African food and beverage sector, growing this year at an estimated 12%, against branded product growth of 6%. In developed economies, private label has attained a larger share across the majority of categories, indicating room for additional private label penetration in South Africa. Shift to e-commerce: There has been a continued rise in e-commerce, with online retail sales doubling in the country in roughly two years, boosted by the recent entry of global online retail players. This is requiring companies to revise their omnichannel strategies and further strengthen customer engagement and service levels, including through integrated loyalty programmes. « The recent increase in the frequency and severity of extreme weather events has highlighted the impact of climate-related risks on the availability, quality and pricing of essential raw materials, as well as on the resilience of our distribution and supply chains. Civil unrests in South Africa have arguably also sharpened business and investor appreciation of the commercial impacts associated with sustainability-related risks such as poverty, inequality and joblessness. « The changes in climate and weather patterns are reducing crop yields, squeezing supplies and driving up prices, with a recent study by the European Central Bank suggesting that global annual food inflation rates could rise by up to 3,2 percentage points per year within the next decade or so as a result of higher temperatures. This year, a shortage of cocoa beans in West Africa linked to El Niño has seen the price of the commodity surge four-fold in the past 12 months. « The growing visibility of social and environmental pressures is prompting greater regulatory intervention – including new and/or strengthened regulation on food labelling, greenhouse gas emissions, plastic packaging, wage level disclosure, supplier due diligence, and taxes on sugar and carbon – all of which has a material impact on our business activities. « At a global level, there have been significant developments relating to corporate transparency on sustainability impacts, risks and opportunities, such as the IFRS Sustainability Disclosure Standards, the EU’s Corporate Sustainability Reporting Directive (CSRD) and the recommendations of the Taskforce on Nature- related Financial Disclosure (TNFD). Despite a recent investor backlash on environmental, social and governance (ESG) issues and growing politicisation of the issue, investor engagement on ESG performance and disclosure remains strong, albeit at a slower pace. « In some market segments we are seeing growing demand for brands-with-purpose, sustainable and local products, plant-based proteins, ethical marketing and front-of-pack nutrition labels. Globally there is an increasing preference for local ingredients given these products are often perceived as healthier, and more sustainable, trustworthy and authentic. Changes in route-to-market: At the same time, driven in part by reduced consumer disposable income, we are seeing some shifts in route-to-market, with supermarkets facing strong competition from mixed and wholesale retailers, emerging informal players, and convenience retail solutions such as forecourts and e-commerce. Although the formal retail channel remains the largest contributor to the South African FMCG sector, at roughly 61% of the estimated R827 billion market, wholesalers and distributors – including informal independent traders such as spaza shops and superettes – have until recently been gaining momentum and market share ( see page 58). We are operating in an increasingly dynamic competitor and customer environment that is heightening the imperative of a consumer-centric mindset, ensuring cost leadership and maintaining a superior channel presence. Climate change and the impact on sustainable agricultural sourcing, as well as other sustainability-related pressures, are having an increasingly material impact on companies in the foods sector. Our strategic response « To ensure more effective penetration in a challenging market, we have prioritised the execution of shopper-centric segmentation of our trade channels. Deepening our insight of broad shopper profiles is informing our shopper activation and store execution plans, enhancing our consumer marketing campaigns and ensuring more targeted pricing, promotions and price-pack architecture. « We are actively expanding our reach in general trade, and we have refreshed our strategy to best defend our product offerings against the increasing threat of private label. « In response to the growing importance of the informal market we are pursuing various initiatives to expand our reach in general trade. Following an aggressive roll-out plan, we have reached 91 000 general trade stores by financial year end and aim to expand our presence to 130 000 stores over the next five years. Our strategic response As one of the largest food companies in South Africa and across the continent, we recognise that we have an important role and responsibility in facilitating access to affordable nutrition, providing employment opportunities, entrenching fair labour and remuneration practices, and respecting human rights and promoting responsible environmental practices within our operations and across our supply chain. Our commitment to addressing our sustainability impacts is reflected in our sustainable future strategy, which comprises three focus areas – health and nutrition, enhanced livelihoods and environmental stewardship – underpinned by a set of strategic enablers. « Health and nutrition: We continue to make progress on our commitment to empower consumers to improve their health and wellbeing, by launching food products that are more nutritious and affordable, developing best-in-class nutritional standards, and leveraging our brand and marketing activities to promote consumer nutrition. We are investing further in strengthening product quality and food safety across the company to ensure that we have robust systems, qualified people, and a strong quality and safety culture, achieving external certification for all our manufacturing facilities against globally recognised food safety standards. « Enhanced livelihoods: We have longstanding activities in place aimed at improving the livelihoods of thousands of people across our value chain, by using our procurement practices and our investment in supplier and enterprise development to stimulate economic opportunities, including through a specific focus on supporting black/black-women farmers and owned enterprises. « Environmental stewardship: We have made further progress this year in reducing our environmental impact through various initiatives, including through our investments in renewable energy, enhancing energy and water efficiency in our operations, and minimising waste, effluent and emissions. We continue to identify innovative opportunities for circular economy interventions in areas such as packaging and food waste, as well as leveraging our brand and marketing activities to inspire positive behaviour change. A changing competitive landscape 3. Climate change and sustainability-related pressures 4. Tiger Brands Limited Integrated annual report 2024 39 38 Tiger Brands Limited Integrated annual report 2024 Our operating environment continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Risk management arrangements We manage our risks and opportunities to support the achievement of our strategic objectives by identifying opportunities to protect, create and capture value. Our risk management arrangements align with the principles of King IV™, ISO 31000:2018 and generally accepted good practice in a manner that is fit-for-purpose. Ultimate accountability for the adequacy of the risk management programme across Tiger Brands rests with the board. The board has assigned oversight responsibilities for risk governance and the development of appropriate organisational and cultural maturity to the risk and sustainability committee. The group executive committee, supported by category- level executive committees, is tasked with the design, implementation and operation of the risk management system. Category-level management teams, supported by group operations, continuously monitor and manage their risk profiles, and are responsible for developing and maintaining an appropriate risk-aware culture. Risk profiling and oversight We adopt a comprehensive approach to identifying risks that includes a top-down as well as bottom-up analysis. The top-down approach starts with a group view of Tiger Brands, where consideration is given to the operating environment, the business model and the associated objectives and strategies defined by the group. Similarly, category leadership is required to analyse their operating environments, business models, products and strategies to identify category-specific risks; these are also reported at the group level for oversight. Common category-level risks are then identified, which may be escalated and managed at the group level as needed. In addition to identifying risks that impact our ability to achieve our organisational objectives, management also considers factors that may develop into risks, even in those instances where our understanding of these factors is not sufficient to develop comprehensive mitigating strategies. These are termed “emerging risks” and are also tracked through the various oversight structures following a top-down and bottom-up identification process. We believe that effective risk management practices generate additional benefits beyond the value protection outcomes typically associated with risk remediation activities. As part of its risk analysis process, management identifies and reviews opportunities to create or enhance competitive advantage, and/or increase our reputation, with a view to optimising value creation. The group executive committee oversees the identification of group risks and responses. Business unit-level management oversees and manages category-specific risks and reports the material risks to the group executive committee through the operational risk management committee. A consolidated Tiger Brands risk profile is then compiled and reported to the board risk and sustainability committee before being submitted to the board. In addition to the analysis and remediation of top risks, we maintain a combined assurance programme that aims to provide stakeholders with comfort that the control measures deployed to shape risks are adequate and effective. Risk appetite and tolerance General risk appetite and tolerance ranges are defined by group executive management and annually approved by the board. These ranges are reflected in the heat maps and provide general guidance regarding expected responses to the mapped risks. For each risk, group executive management determines a targeted residual risk level that represents risk-specific appetite levels. These targets are set against the backdrop of the approved risk appetite and tolerance ranges and more specifically define the nature and extent of each risk’s control improvement plan. This target and the associated control improvement plan is subject to management and non-executive director oversight in accordance with Tiger Brands’ risk management policy. While the group will accept risk to achieve its ambitions of being a market-leading, international, diversified FMCG company, Tiger Brands has an aversion to risk in the areas of food safety, the delivery of quality products and loss of life. Our top risks Our material risks are those that exceed our residual risk tolerance level and are thus identified as having the most material implications for Tiger Brands and its stakeholders. The inherent risk heat map presented below represents the inherent risk profile of our material risks. Without adequate Impact Likelihood Catastrophic – 5 Critical – 4 Significant – 3 Minor – 2 Insignificant – 1 1 – Unlikely 2 – Possible 3 – Likely 4 – Almost certain Inherent risk map Impact Likelihood Catastrophic – 5 Critical – 4 Significant – 3 Minor – 2 Insignificant – 1 1 – Unlikely 2 – Possible 3 – Likely 4 – Almost certain Residual risk map 1.1 1.1 1.5 1.5 1.9 1.9 1.6 1.6 1.10 1.10 1.2 1.2 1.7 1.7 1.3 1.3 1.4 1.4 1.8 1.8 remediation, the risks are potentially a threat to the group as a going concern and thus merit management attention. Following management’s intervention through various remediation programmes the material risk profile shows a marked improvement, albeit still in need of further remediation. This is outlined below in our residual risk heat map. We believe that effective risk management practices generate additional benefits beyond the value protection outcomes typically associated with risk remediation activities. Inherent (with risk score) Residual (with risk score) 1.1 Evolving trade environment (20) 1.1 Evolving trade environment (16) 1.3 Food safety (20) 1.2 Declining cost competitiveness (16) 1.6 Volatility of agricultural crop supply (20) 1.3 Food safety (16) 1.9 Cyber security threats (20) 1.4 Security of supply including third parties (16) 1.2 Declining cost competitiveness (16) 1.5 Inadequate services (electricity, water, fuel) (16) 1.4 Security of supply including third parties (16) 1.6 Volatility of agricultural crop supply (16) 1.5 Inadequate services (electricity, water, fuel) (16) 1.7 Volatility and geopolitical instability in rest of Africa (16) 1.7 Volatility and geopolitical instability in rest of Africa (16) 1.8 Digital transformation execution pace (12) 1.8 Digital transformation execution pace (16) 1.9 Cyber security threats (12) 1.10 Changing consumer preferences (16) 1.10 Changing consumer preferences (12) Tiger Brands Limited Integrated annual report 2024 41 40 Tiger Brands Limited Integrated annual report 2024 Material risks and opportunities Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Decline in competitiveness due to higher input costs across the value chain, specifically in procurement, manufacturing, packaging and logistics, and corporate costs. Risk trend: 2023 Ranking (Joint 1) Context and value impact Our supply chain and product formulations remain a central component of our ability to remain cost competitive. Due to ongoing instances of short supply globally, as well as the impact of inflation locally on consumers, we need to continuously manage cost competitiveness while maintaining our relative brand-premium, ensuring our products are relevant to the majority of our consumers. The physical and transition risks of climate change are also increasingly being felt across the supply chain, resulting in cost escalations and disruptions in procurement and logistics. Mitigating actions Our initiatives are predominantly focused on improving efficiency and effectiveness in four areas: « Value engineering « Procurement optimisation « SKU-complexity reduction « Process innovation and automation « Manufacturing footprint « Supply chain optimisation Our various cost leadership activities are reviewed in more detail from page 52. 1.2 Declining cost competitiveness Harm to the consumer caused either by foodborne illnesses relevant to our food products, or undesired skin/body reactions relevant to our personal and home care products. Risk trend: 2023 Ranking (Joint 2) Context and value impact Food products have inherent potential to lead to health concerns for consumers and thus remain at the forefront of management’s attention given our strong risk averse stance on issues relating to public health and safety. There is empirical evidence globally of the increase in salmonella and aflatoxin. Mitigating actions The nature of food safety demands that we approach it in a scientific and systematic manner to ensure consistent and repeatable results. To this end we have implemented: « Quality risk assessment and management protocols, including the roll-out of a technology-enabled quality system, phased over three years « Industry hygiene and quality standards, including the development and roll out of 60 new internal Tiger Brands Group Quality and Food Safety Standards, including standards for salmonella and aflatoxin « External certifications of all our manufacturing facilities « A pathogen and environmental monitoring programme at high risk sites « Extensive ongoing employee training programmes 1.3 Food safety Failing to adequately manage risks associated with outsourced manufacturing and in-bound supply. Risk trend: 2023 Ranking (Joint 2) Context and value impact Tiger Brands collaborates with various supply chain partners to deliver on its strategies. These suppliers provide raw materials, ingredients and packaging, and in some instances finished goods, that are subject to quality control processes outside of our protocols. Failure to ensure adherence to Tiger Brands’ specifications and standards may erode consumer satisfaction, profitability and brand equity. Currently, 75% of our supply for our top 1 000 line-items is single source supply, presenting risks should these suppliers fail to deliver. Mitigating actions Our mitigation programme is centred around the following key activities: « Identifying all high-risk single source suppliers and adopting appropriate mitigation plans for these suppliers « Contracting our relationships with third-party suppliers and manufacturers to maintain Tiger Brands’ quality requirements and allow for effective performance management « Applying a rigorous assessment and onboarding programme for all potential suppliers to ensure their alignment with Tiger Brands’ quality standards throughout the product life cycle « Implementing physical inspections upon delivery and, where appropriate, obtaining certificates of analysis « Rolling out our supply quality assurance (SQA) audit programmes to provide necessary assurances « Closely monitoring consumer complaints and investigating where necessary 1.4 Security of supply including third-party manufacturers 1.5 Inadequate services (electricity, water and fuel) Risk trend: 2023 Ranking (Joint 2) Insufficient availability, or inadequate quality of supplied electricity and other services. Context and value impact South Africa’s electricity and water infrastructure is increasingly under pressure due to insufficient investment and maintenance. Insecurity of electricity and water supply negatively impacts our production capability and costs, while all our manufacturing facilities are reliant on the availability of water especially the Beverages business. Mitigating actions Our mitigation programme is centred around the following key activities: « Business continuity plans in place for all high risk sites, with identified key actions « Generating electricity onsite through mobile generator capacity and renewable sources such a solar and increasing diesel storage capacity at various plants « Increasing water storage capacity and water quality at key manufacturing plants « Continuing to identify opportunities for energy and water efficiency The following table reviews the implications, mitigation measures and year-on-year trend in the risk rating for each of our top seven risks in terms of their residual risk score. In addition to the risks listed below, we recognise that climate-related risks are becoming increasingly significant, not only directly to our business model but also at a broader economy-wide level. Given the growing materiality of this issue, we are maturing our processes to identify, assess and remediate the climate-related risks across our value chain. Responsiveness to an evolving trade environment, blurring of channels and trade concentration. Material risks Risk trend: 2023 Ranking (Joint 1) Context and value impact Meeting and exceeding customer and consumer needs and wants is the lifeblood of our business. With depressed levels of consumer spending and strong competitive pressure, this challenge remains material and threatens our market share, brand strength, profitability and penetration. Increasing strength of retailers across modern trade and wholesale market. Mitigating actions Our mitigation actions revolve around the following key themes: « Collaborating with customers and researchers to improve our understanding of market needs and wants, while leveraging insights garnered by our own consumer insights division « Maximising service levels through joint forecasting with customers to enhance product availability at locations « Optimising our product and customer mix « Deploying promotions and price-pack tiering to meet evolving shopper needs « Creating differentiated value propositions « Reviewing pricing strategies to enhance competitiveness « Expanding our availability and visibility in general trade, and continuing to identify and realise opportunities in e-commerce and alternative channels 1.1 Evolving trading environment Tiger Brands Limited Integrated annual report 2024 43 42 Tiger Brands Limited Integrated annual report 2024 Material risks and opportunities continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Climate-related impacts are increasingly affecting our supply chain, putting at risk the security of ongoing production of food. Risk trend: 2023 Ranking (Joint 2) Context and value impact Our global and local supply chain is increasingly affected by climatic conditions that impact not only the location, availability, accessibility, and price of our raw materials, but also downstream factors such as logistics and regional legal requirements. This year, either the quality or quantity of supply of the following agricultural products has been particularly affected by weather patterns: sorghum, wheat, maize, small white beans, ground nuts, tomatoes, canola and soya beans. Mitigating actions Our mitigation response targets the following: « Ongoing identification of alternative source markets for raw materials, and/or researching the use of substitutes for raw materials « Reformulating products to use more readily available, accessible, and price viable ingredients, and/or optimising our manufacturing processes to accommodate reformulated products « Stockpiling of raw materials to protect against shortages inaccessibility or price volatility « Application of technology or alternative processes to improve production of raw material or substitutes, and enhance forecasting of key aspects such as planting dates and precipitation patterns « Enterprise development initiatives to develop and promote sustainable farming of desired raw materials 1.6 Volatility of agricultural crop supply Social and political factors on the continent continue to remain unpredictable with recent developments potentially creating further disruption. Risk trend: 2023 Ranking (new) Context and value impact The dynamic socio-political context in our African markets creates significant market uncertainty. Recent challenges include a lack of forex availability in certain markets impacting our collection of debt and sell out rate, numerous elections across the continent and political leadership changes impacting policy certainty. Mitigating actions Our mitigation response includes the following: « Concluding contracts with key distributors in each country, as a means of cushioning impacts « Holding CGIC cover across our debtors book including higher risk offshore debtors 1.7 Volatility and geopolitical instability in rest of Africa Risk trend: 2023 Ranking (new) 1.8 Digital transformation execution pace Context and value impact Delivering digital transformation in a sufficiently timely manner is essential to remaining competitive to ensuring deeper market penetration of our products. Mitigating actions We are executing our recently approved digital strategy that aims to stimulate business growth, reduce costs and drive productivity efficiencies across the group. Any risk of financial loss, disruption or damage to Tiger Brands’ reputation due to failures of its information technology systems because of large-scale cyber security attacks. Risk trend: 2023 Ranking (Joint 2) 1.9 Cyber security threats Context and value impact The increasing interconnectivity, globalisation and commercialisation of cybercrime is driving greater frequency and severity of cyber incidents, including data breaches. This can compromise the confidentiality, integrity and availability of information and technology resources, lead to disclosure of commercially sensitive information and intellectual property and disrupt our operations. In addition to non-compliance risks, the release of personal information has negative reputational and brand implications. The rate of ransomware attacks across South Africa has significantly increased, with almost one company every two weeks reporting breaches through a cyber attack. Mitigating actions We are mitigating this risk through various initiatives: « To enhance our resilience against cyber security threats, we have successfully implemented a fast-tracked cyber security roadmap « We have added relevant skills to the team and established strong vendor partnerships « We undertake monthly monitoring of our perimeter and network protection, attack surface management, access management, critical data management, incident management and compliance and IT service continuity « We partner with service providers who provide deep cyber security expertise and who are accessible to us should an attack occur Failure to understand and respond effectively to changing consumer demographics and spend, as well as consumption behaviour and patterns. Risk trend: 2023 Ranking (Joint 2) 1.10 Changing consumer preferences Context and value impact The challenging economic environment has significantly impacted consumer and shopper behaviours; this is likely to accelerate particularly in relation to premium brands and non-essential categories that are substitutable. Disposable income remains highly challenged across income groups and ages; this has been exacerbated recently by high levels of inflation, particularly in food, utilities and transport. Mitigating actions We are mitigating this risk through various initiatives: « Our insights team shares details on current and projected macro-economic dynamics with business units on a monthly basis « We use our brand performance scorecard to track the performance of our 10 power brands and 6 specialists brands in terms of the brand proposition, promotion, place, price, product and pack. This is shared with our BUs to agree on the proposed action plan, and forms part of the Exco and board reporting to ensure right corrective actions in line with the corporate strategy. Tiger Brands Limited Integrated annual report 2024 45 44 Tiger Brands Limited Integrated annual report 2024 Material risks and opportunities continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com We do not classify climate change as a single risk. It is too wide a risk definition to effectively respond to all its drivers and consequences in a single mitigating strategy. Consequently, we refer to climate change as a “risk type” to ensure that it receives due consideration when emerging and active risks are identified across our value chain. Climate-related risks are identified, managed and reported on through the established Tiger Brands risk methodology and structures to ensure that it is not a stand-alone consideration but fully integrated with our business oversight and management practices. The table below provides a generalised overview of the climate-related risks, opportunities and impacts of greatest significance for our business. Risks Supply chain disruptions Extreme weather events and climate change, aggravated by local water scarcity and energy instability, could lead to significant disruptions in the supply of commodities and raw materials, and the distribution of products. Regulatory and legal risks New legislative requirements, including new taxes and stricter regulation on environment and health, present legal and compliance risks. Reputational risk Failure to address economic transformation, public health, food security and climate change issues could damage Tiger Brands’ reputation and market share, especially with rising social and shareholder activism. Opportunities Resource efficiency By implementing water-efficient processes, energy-saving technologies and renewable energy sources, we can help mitigate resource scarcity, lower costs and reduce environmental impact ( see sustainability report). Sustainable and resilient supply chains By developing more local, diversified, sustainable and resilient supply chains, we can support local economies, reduce vulnerability to geopolitical or climate-induced disruptions, and strengthen our ability to partner with suppliers to address social and environmental impacts and risks in the supply chain ( see sustainability report). Waste reduction and circular economy initiatives Reducing packaging and food waste, as well as developing innovative new packaging solutions, service models and circular material flows, offers the potential to reduce costs and to develop new income streams and business models that reduce resource consumption and environmental impact, and that support enterprise development initiatives that address social inequality and economic exclusion ( see sustainability report). Impacts Greenhouse gas (GHG) emissions GHG emissions from our direct operations and manufacturing plants, purchased electricity, upstream manufacturing and agriculture (land conversion) and manufacturing, and downstream transport contribute to climate change. Organic waste that we send to landfill contributes to climate change through the release of methane. Resource use Water scarcity and energy security are acute issues in South Africa. We use energy and water in our operations, and the efficiency and circularity of our use of these resources in our operations directly impact the general availability of these resources for communities and ecosystems (water). Our use of borehole water potentially impacts groundwater quality and availability. Climate change: A particular risk type Tiger Brands Limited Integrated annual report 2024 47 46 Tiger Brands Limited Integrated annual report 2024 Material risks and opportunities continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Tiger Brands is one of Africa’s largest listed manufacturers of FMCG. Our core business is the manufacture, marketing and distribution of everyday branded food and beverages. Our products are relevant across every meal occasion and are well positioned to grow. The portfolio also includes leading brands in the home and personal care segments. Our culture We treat each other with care and respect We deliver with passion and excellence Safety and quality are non-negotiable for us We embrace diversity and inclusivity We act with integrity and accountability in all we do OUR VALUES We are One Team Tiger We leverage our strength, agility and brands to nourish and nurture more lives every day We create a great place for our diverse people to thrive, grow and innovate Our passion for excellence and relentless focus on quality make us our consumers’ number one choice Our drive for success and flawless execution, delivers winning performance, every time We celebrate our victories together OUR WINNING CULTURE Consumer obsession: I have my ear to the ground. I make it my business to ensure that everything I do contributes to nourishing and nurturing more consumer lives every day. Teamwork: I embrace every opportunity to collaborate, learn and celebrate the people I work with, in order to achieve a common goal. Empowered accountability: I am supported and resourced to deliver on commitments. I take ownership of my contribution to our winning performance. Focused execution: I make bold choices on executing fewer actions that will move the performance needle. I do it right first time, every time. OUR WINNING BEHAVIOURS Achieve revenue growth ahead of inflation Unlock value to achieve double digit EBIT margin Focus portfolio of 10 power brands and 6 specialist brands Improve balance sheet returns to achieve ROIC in excess of WACC Grow ahead of the market Become the employer of choice for the best talent with the highest level of engagement STRATEGIC AMBITIONS We nourish and nurture more lives every day. OUR PURPOSE Growing southern Africa’s leading consumer goods company that places the consumer at the centre of everything, through our people, with the most accessible loved brands. OUR VISION Sustainable profitable growth and market leadership. OUR MISSION OUR STRATEGY Our strategy for sustainable profitable growth is supported by six strategic pillars, underpinned by our core values. Key enablers Shaping our portfolio of the future Cost leadership Rejuvenate our brands Executing growth platforms Superior channel presence Federated operating model Competitive digital capabilities Ignite our people Competitive manufacturing Game-changing innovation Sustainable agricultural sourcing Tiger Brands Limited Integrated annual report 2024 49 48 Tiger Brands Limited Integrated annual report 2024 Our strategy Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com We have re-evaluated and optimised our product portfolio, prioritising a core set of product categories with competitive strength that we will continue to invest in and grow. We have also identified categories that present new opportunities for our portfolio of the future, as well as those categories targeted for exit. Optimising our product portfolio To determine the categories where Tiger Brands is best positioned to compete, we have undertaken a detailed review of the South African FMCG market, assessing key consumer trends and the current macro-economic outlook (see page 34) and identifying those product categories that are the largest and/or fastest growing in terms of volume and/or value. For each of these categories we have considered their strategic and financial fit for Tiger Brands’ portfolio, reviewing the current performance, competitive positioning and market share of our existing brands, assessing the synergies between categories and evaluating the potential for our brands to stretch to other categories. Informed by a recent updated analysis, we have identified specific opportunities in the market in which Tiger Brand should play – where we have “the right to win” – and those categories that we should exit. We continue to see potential to further expand our current category footprint and drive penetration in groceries, baked goods beverages, wheat flour, breakfast cereals, rice and pasta, processed fruit and vegetables, and selected products in snacks and treats and in home and personal care. An important objective in shaping our revised portfolio is to “de-seasonalise” the sale of our product offerings as far as possible – for example by expanding the markets of highly seasonal products or shifting the composition of certain product offerings to provide for available seasonal raw materials. We have also identified various opportunities for entry in adjacent categories where we see valuable synergies, a growing market and/or higher margin potential. These opportunities are aligned with our identified three key growth platforms: affordability, health and nutrition and snackification (see page 56). In these existing and potential prioritised categories, we are investing in game- changing product and process innovation (see page 63), driving further process efficiencies and/or expanding production capacity. We continue our portfolio assessment and reviewing the strategic and financial fit of several business units over the short to medium term, including (but not limited to) maize meal, King Food and Beverages, Baby wellbeing, resulting in the disposal of certain non-core brands in Home and Personal Care, as well as Baby wellbeing being held for sale. Shaping our portfolio of the future Tiger Brands Limited Integrated annual report 2024 51 50 Tiger Brands Limited Integrated annual report 2024 Our strategy continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Optimising our distribution network Cost leadership Cost leadership is the foundation of our business transformation journey, and ensuring we produce affordable products for our consumers, and can improve operating margins. Improving operating margins through cost leadership In the context of a particularly challenging economic environment, with a subdued market in which most consumers are trading down, we recognise the need to be cost competitive to ensure sustainable margins. Informed by an extensive external cost-benchmarking exercise – in which we reviewed our performance against category peers and specific SKUs by category and cost line item – we have identified the following six key levers aimed at ensuring cost leadership, improving gross and operating profit margins, enhancing returns on invested capital, and improving total shareholder returns: « Value engineering: We are looking to maximise margins by designing for value and reducing costs across our activities. We are continuing to identify and realise specific opportunities to leverage our ingredients, recipes and product and packaging specifications to optimise value and reduce costs, informed by a clear understanding of our targeted consumer needs. « Procurement optimisation: We are realising specific opportunities to reduce spend on an identified set of raw material ingredients and packaging through improved sourcing and purchasing of commodities and ongoing renegotiations with suppliers, undertaken as far as possible at a decentralised level. « SKU-complexity reduction: We are reducing the number of our SKUs – and minimising the associated complexity of our recipes, product processes and packaging – to enhance manufacturing efficiency, reduce procurement and inventory costs, and optimise our sales and marketing spend. This rationalisation process is delivering valuable top-line and bottom-line benefits, with a target of 20% reduction over the next two years. « Process innovation and automation: We are innovating our processes and investing in targeted automation projects to reduce conversion costs and wastage, including by delivering workforce efficiencies through improved time-in-motion analysis. « Manufacturing footprint: We are ensuring full and effective utilisation of our assets by driving higher demand/production volume, and, where feasible, optimising sites by enhancing manufacturing synergies between different categories and products. « Supply chain optimisation: We are continuing to find opportunities to reduce our spend on distribution, logistics and digitisation across our supply chain, including by optimising our warehousing, dispatch and route management activities, and enhancing our digital tools and skills. Recent examples of costs savings initiatives include: « Reducing the costs base through our new federated operating model and organisational restructuring (see page 61) « Value engineering product and recipe formulations across our portfolio, without compromising quality or taste « Changing some of our product packaging from glass to recyclable PET, bringing cost savings and added convenience in production, transport and use « Reducing the number of SKUs across our product portfolios « Reducing electricity and water usage across prioritised manufacturing operations « Delivering efficiencies in route optimisation « Introducing automation projects (for example in Ingrams and Oros) « Moving to in-house production of certain categories In 2024, we launched an ambitious logistics network optimisation programme, the network analysis project aimed to define the future-fit distribution solution for Tiger Brands with an optimised cost base and improved efficiencies. The assessment included all warehousing requirements, road freight and route optimisation. The project also included raw materials and packaging movement which was not previously considered due to data hygiene challenges. The programme will deliver in excess of R200 million in savings over the next two years. Through this programme we have implemented a new warehouse management system, which has already delivered some significant benefits, reducing stock-taking time, improving stock rotation and traceability, and enhancing direct delivery efficiencies. We have completed the reorganisation of our customer support centre and we have introduced a pallet weight optimisation initiative at some of our facilities, yielding improvements in transport cost efficiencies. Tiger Brands Limited Integrated annual report 2024 53 52 Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Rejuvenate our brands We have sharpened our brand portfolio focus to 10 power brands and 6 specialist brands, backing our focus brands to maximise return on brand investment. We have undertaken a structured assessment of the health and performance of all our existing brands, classifying these against an agreed set of industry typologies for brand equity and growth potential. Through this process we have sharpened our brand portfolio into 10 “power brands” and 6 “specialist brands” (see page 55), each of which has broad and deep connections in the minds of consumers, and where there is the greatest ability to create further value. These are distinct from our “mainstream” brands that may be well We have identified specific opportunities to migrate and divest certain brands. This brand rationalisation will bring significant benefits, enabling more focused marketing and brand investment, backing brands with higher ROI, and increasing our resulting brand equity and market share through portfolio optimisation. We are in the process of finalising the rationalisation of our brand portfolio, undertaking the necessary financial modelling and developing an implementation plan for testing with consumers. As part of this process, we are implementing a programme to ensure consistent brand messaging across our various channels, deepening consumer awareness and engagement of our consolidated brand proposition and driving and retaining conversion through appropriate promotional activities and product quality, pricing, placement and packaging. Brand role: Power brand Brand role: Specialist brand known and well understood – and with a solid consumer connection – but that lack sufficiently strong differentiation and have less capacity for meaningful growth without significant investment in further developing brand salience. Within these priority brands we will be working to build brand difference and salience by delivering functional and emotional cues in a unique and entertaining manner, reinforcing the nutritional and/or functional attributes of our products across all touchpoints, and driving presence through our “always on” visibility in communities. Tiger Brands Limited Integrated annual report 2024 55 54 Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Informed by renewed insight and analysis, we have refreshed the board-approved principles to best defend our product offerings against the increasing threat of private label. We will be further investing in our brands, building our innovation capabilities, protecting our intellectual property, and offering consumers choice through our premium and value offerings, supported by the right price and pack architecture. Our revised operating model is geared to growing our brands, with a clear governance process for evaluating private label and sign off. We will only manufacture private label products in selected categories where we see clear long-term commercial and strategic benefit, informed by a thorough cost-benefit assessment, with approval from the Exco. Democratising health and nutrition As one of Africa’s largest food company, our health and nutrition agenda is integral to our purpose of nourishing and nurturing more lives every day. In addition to the broader socio-economic and moral imperative of driving positive change in health and nutrition, we believe that there are valuable opportunities for business growth in leading this agenda in our markets. In the lower income market, we aim to democratise nutrition by driving awareness, accessibility and affordability of our healthy food portfolio. This includes, for example, an educational campaign on the health and nutritional benefits of some of our brown bread product offerings. We are amplifying our nutrition communication to drive category leadership by leveraging on our “eat well, live well” labelling, and we are making healthier products more accessible through increased availability in general trade. To close nutrient gaps, we enrich many of our affordable nutrition food offerings with nutrients that are often lacking in the South African diet – such as Vitamin A, iron, zinc and protein – ensuring that we strike the right balance between taste and enhanced nutritional value. In the higher income market we are innovating across categories to unlock snacking options. Executing growth platforms Given the current highly dynamic consumer and competitor environment – with many consumers trading down and with heightened market pressure from new and traditional competitors – we have identified three key growth platforms for our brand portfolio to drive broader consumer and shopper relevance and ensure longer-term success: driving affordability, democratising health and nutrition, and over-indexing on snackification. Driving affordability to be the lead choice for value-seeking consumers Our ambition is to become the leading choice for value- seeking consumers and shoppers, and to defend against the rise of private label, by enhancing the affordability and accessibility of our existing and new product offerings. We are driving affordability through appropriate pack, price and channel architecture and targeted brand tiering, by harnessing effective distribution channels and by realising opportunities for product and packaging innovation, supported by value-led marketing and consumer engagement campaigns and our broader cost reduction initiatives. We have made further progress this year in these ambitions, delivering value-for-money innovations in selected categories to ensure more affordable price points. Recent and planned innovations include the introduction of new value packs and new value offerings in Culinary, and in Snacks, Treats and Beverages. Within Culinary, an important strategic focus is on providing “Plus Foods” – local branded products that consumers “Add-2-Food” to elevate and stretch their meal or snack, through affordable, convenient and trusted nutritional offerings. This includes launching new sub-brands in certain product categories, that deliver an affordable and nutritional product offering at different price points. These various innovations across our product portfolio will be aided by our continuing activities to enhance efficiency and reduce costs, as well as by delivering on our goals to compete more effectively in the deep discounter channel. This year, we launched new healthier “free from” and lower calorie product lines in Culinary and Snacks, Treats and Beverages, including new sugar-free wine gums and tomato sauce, lower calorie, sugar-free beverages products, and new healthier breakfast cereal oat biscuits. We have also continued the roll-out of clear consumer-relevant health claims on various brands. Through our renovation and innovation efforts, we are aiming to ensure that by 2030, 65% of our food basket will meet our EWLW nutritional standards for healthier product categories “improved for you” and “good for you”. We are continuing to promote consumer health and nutrition awareness through our on-pack and beyond- pack communication – with information for example on healthy portion sizes and product pairings – and by inspiring consumers with everyday nutritious meals through tasty recipes. Responding to the snackification trend Recent research confirms that snacking is continuing to gain momentum in South Africa, with more than 70% of South Africans estimated to be snacking on a daily basis across all consumer age groups. We aim to capitalise on this growing trend by owning relevant demand spaces for consumers in all key snacking categories, including liquification, nano-meals, crunch time and sweet pleasures. In driving innovation to capitalise on this trend, we have various recent and planned product innovations. In launching new products, we are spending equal effort to develop robust pipelines to enter adjacent categories, aligned with our core and emerging capabilities. Informed by a thorough analysis of global, regional and local trends specific to the FMCG and retail sectors, we have prioritised three growth platforms aimed at driving broader consumer and shopper relevance and increasing market success. Tiger Brands Limited Integrated annual report 2024 57 56 Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Superior channel presence Recognising the rapid growth rates in the general trade segment, we are looking to boost the competitive presence of our brands across the general trade segment by delivering an effective route-to-market and shopper marketing solution. We are continuing to identify and realise opportunities in the e-commerce space, deliver precision execution, and strengthen our relationships with customers across all channels. Turbocharging general trade Although the formal retail channel remains the largest contributor to the South African FMCG sector – at roughly 61% of the estimated R827 billion market. In recent years, there has been strong growth in the market share of wholesalers and distributors (general trade), including among informal independent traders such as spaza shops and superettes. At the same time, there has been a growing blurring across traditional channels, with wholesalers moving into the retail space, and large retailers venturing into wholesale and small, low-cost convenience stores, including in more remote rural areas. With households in the general trade channel representing around 61% of total shoppers, and with the channel delivering around 8,9% CAGR growth, this is a critical target market for Tiger Brands. Aided by the acceleration of fintech – that is formalising ordering and payment platforms and facilitating the provision of value-added services in spaza shops – the general trade channel is becoming increasingly modernised, well organised and more convenient, with longer trading hours and more extensive geographic reach. Shoppers typically visit spaza stores up to four times more than traditional supermarkets, providing a significant opportunity to expose shoppers to our products and brands. Given this growth potential, we are looking to accelerate the presence of our brands across the general trade channel through a three-pronged strategy. « Increasing availability: Through an aggressive roll-out plan, we are working to expand our direct engagement and brand presence to 130 000 stores nationwide by FY29, supported by an expanded salesforce team employing representatives from the local community, as well as by the roll-out of our cashless payment and SA channel composition | In 2024, formal retail leads market growth retaining share and dominance. Note: *Growth adjusted Informal independent +6,4% to R197bn The informal independent estimate represents informal traders (spaza trade), which effectively is fed through different sectors, channels and routes to market (corporate, formal independent and direct), depending on where traders buy their stock from. Leading in digital commerce Grocery e-commerce continues to grow rapidly, becoming one of the largest categories in the broader e-commerce channel, and offering significant opportunities for brand penetration. This year, we have continued to drive various initiatives to raise our online presence and become the preferred supplier to prioritised digital commerce partners, making further progress in our targeted areas: « Increasing sales in Bricks & Clicks by ensuring closer strategic alignment and delivering focused category/brand activity with leading grocery e-tailers, while accelerating our growth in growing e-tailers « Growing our online presence and conversion in Pureplay through our joint strategic initiatives with leading platforms and growing our presence in smaller, fast growing online customers « Testing Direct 2 Consumer opportunities by scaling up our online employee shop (Tiger Trolley), relaunching our Purity D2C platform, and developing a closed-loop platform for selected partners « Strengthening our social commerce strategy, extending key brand campaigns onto social media platforms and developing our own Jungle social commerce platform « We are also continuing to build momentum in the growing general trade e-commerce segment and partnering with key wholesalers to consolidate our platform presence We have delivered strong performance this year, delivering 54% growth in Bricks & Clicks and 26% growth in Pureplay. Developing tailored channel propositions Recognising that stores differ significantly in terms of their trading space, and their shopper and mission profiles, it is critical that we develop highly tailored channel strategies informed by a detailed understanding of different shopper profiles. We are working with retailers – who are increasingly using data analytics and AI to leverage basket data – to deepen our understanding of shopper behaviour and preferences, and to inform our shopper activation and store execution plans. By continuing to improve our shopper-centric segmentation of trade channels, this is enabling us to develop more focused consumer messaging and engagement, more tailored pricing and promotions, and more appropriate price and pack architecture, as well as delivering valuable cost savings. Source: chief customer officer, Trade Intelligence order platform. Our mobile platform facilitates delivery of stock from a midi-wholesaler to a spaza store or supermarket within 48 hours and dramatically reduces the risks for customers associated with handling cash. This year, we made good progress on our targets, reaching more than 91 000 general trade stores, employing more than 300 sales representatives from local communities, and expanding our learnerships for people with disabilities. « Driving visibility: We are improving brand visibility through our perfect store and trader loyalty reward initiatives, our revised pack/price propositions and point-of-sale materials, and the roll-out of our highly visible branding of selected general trade stores, using local artists and painters. This year, we launched 200 perfect stores, completed the branding of 244 spazas and 30 community walls with mural stories on some of Tiger Brands’ most recognised heritage and category brands, and we have rolled-out branded coolers to improve the availability of Tiger Brands’ ready-to-drink beverages. « Strengthening engagement: We have been increasing customer engagement through our various category theme campaigns and digital marketing activities, supported by our dedicated team of Tiger Brands promotors. These strategic commitments are underpinned by our activities aimed at strengthening the capabilities of our sales force, optimising our routes to market, and leveraging digital transformation opportunities to automate our sales processes, improve customer data accuracy, and equip our sales team with the necessary digital tools and training. Collectively these various activities have contributed to a reduction in the cost to serve and a positive operating income, helping to create an estimated 300 local jobs. Total SA FMCG market 2024 +6,6% R827bn Corporate R509bn 61,4% Formal independent R269bn 32,6% Direct from supplier R49bn 5,9% Tiger Brands Limited Integrated annual report 2024 59 58 Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Precision execution To ensure cost efficient and effective execution across our serviced channels, and to meet our “cost to serve” and execution targets, we have continued to roll out our Perfect Outlet standards and our strategic initiatives relating to operational effectiveness and cost efficiency. Using a modern trade dynamic resource model, we have optimised resourcing to ensure that the right people are in the right store at the right time, including increasing weekend coverage to respond to higher trading levels. We have expanded out Perfect Outlet programme to cover new channels and customers, and we have grown the reach to cover 1 500 stores. Using increasingly sophisticated retailer data, we are improving our predictive analytics models to identify execution opportunities, sharing these more effectively through a digital dashboard that is assisting to improve resourcing and strengthen delivery of our Perfect Outlet standards. Customer engagement and leadership In our most recent trade perceptions survey, Tiger Brands was ranked in the top five in terms of the quality of our customer engagement against leading FMCG manufacturers. Informed by the survey feedback, we have identified various opportunities to address the identified challenges and further improve customers’ perception of their relationship with Tiger Brands. To ensure more strategic alignment with our customers, we are intensifying the customer forums across all our key customers, and we are continuing to work with them to ensure greater alignment between our category strategies and customers’ strategies to maximise growth through mutually beneficial win-win opportunities. In line with our new federated operating model, we have strengthened delegation of authority to customer management teams, and we are working with our retail partners to leverage retail media to co-create category solutions for mutual benefit. To improve supply chain management, we are undertaking joint forecasting to drive improved factory efficiencies and ensure optimised service levels. Revenue management We have continued to leverage our revenue management practices to improve profitability and optimise our customer portfolio by ensuring that our product prices, placement and availability are properly aligned within each customer segment. This is based on an informed understanding of customers’ perception of product value, and on a detailed review of price indexing, discount curves and brand health. Through improved data analytics at an SKU and customer level, and improved simulation tools of product price elasticities, we have strengthened our ability to identify opportunities to eliminate margin dilution in specific product categories and to target volume growth. We continue to work on simplifying our trading terms and provide clearer performance metrics aimed at incentivising strong customer performance aligned with our strategic growth drivers. Federated operating model In the first quarter of the financial year, we undertook a detailed review of our operating model and organisational structure with the aim of addressing some of the identified challenges within the business and restoring Tiger Brands to deliver on its full potential. Through this review we sought to enable more agile and rapid execution of our strategy by decentralising decision-making and streamlining the ways of working across our businesses. Following this review, in January 2024 the board approved a revised leadership structure, in which we revised our operating model into six business units led by five managing directors reporting directly to the CEO. We merged two leadership layers into one, eliminating duplicate roles and realising valuable efficiencies in our headcount. As part of this new federated operating model, and to bring in some fresh leadership, we appointed five new managing directors to the Exco team with effect from 1 February 2024. We have simplified and clarified the roles and interdependencies between business units and enabling functions, ensuring greater cohesion across the organisation. Our restructuring efforts have extended to deploying category-specific services back to the business units from the centre, including decentralising our procurement function, enhancing agility in decision-making concerning manufacturing, procurement and customer strategies. The management teams have been relocated to the factories and operations, resulting in a significant scaling down of the head office, facilitating a more hands-on culture of decentralised decision-making as close to the frontline as possible, and strengthening accountability. This revised structure has delivered valuable annualised cost savings. As part of this process, we have rejuvenated our culture transformation journey, initiating work on the Tiger Way Playbook to standardise processes and systems. This initiative is designed to embed the new operating model and drive more efficient execution of our strategy across both businesses and enabling functions. Tiger Brands Limited Integrated annual report 2024 61 60 Tiger Brands Limited Integrated annual report 2024 Superior channel presence continued Our strategic enablers Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com TJAART KRUGER 64 Chief executive officer THUSHEN GOVENDER 48 Chief financial officer QUINTON SWART 49 Managing director: Bakeries JOE RALEBEPA 53 Chief legal officer DUMO MFINI 37 Managing director: Groceries S’NE MAGAGULA 51 Chief people officer LIEZEL HOLMES 41 Managing director: Grains PRAVEEN BALGOBIND 52 Chief manufacturing officer THABANI MSOMI 44 Managing director: Home, Personal Care & Baby ZAYD ABRAHAMS 47 Chief strategy and marketing officer MARY-JANE MORIFI 62 Chief corporate affairs and sustainability officer GRANT PEREIRA 52 Managing director: Snacks, Treats and Beverages LUIGI FERRINI 57 Chief customer officer Managing director: TBI has resigned effective January 2025 Functions Business We have continued to make steady progress in promoting workforce diversity, with African, Coloured and Indian (ACI) representation reaching 95% across our workforce, with 64% ACI representation in senior management and 58% in top management. On gender equity, women made up 30% of our workforce, with 40% in senior management and 25% in top management roles. Our reward strategy – which seeks to inspire exceptional performance and attract and retain top talent – is reviewed annually to boost performance, align with market standards, and meet the evolving expectations of both employees and shareholders. Our remuneration policy explicitly addresses unjustifiable pay differentials, ensuring our pay practices prevent discrepancies between employees in the same role, as well as across race and gender groups. We follow a systemic approach by aligning individual pay and pay scales with similar roles in the market, and we have clear guidelines to ensure fair execution of new appointments, promotions, and pay reviews. During each compensation review, pay differentials are considered, reported and interrogated through various lenses, including gender and race. For a review of our performance on our people strategy, see our sustainability report 2024 Game-changing innovation Driving innovation in our products, packaging and processes is critical to delivering on our growth ambitions and to meeting the constantly evolving needs of the consumer. Although Tiger Brands has a long-standing history of strong innovation, we recognise that our more recent innovation activities – from ideation through commercialisation to execution – have been undermined by various shortcomings, including an inability to take rapid decisions, high inertia in execution and low flexibility in manufacturing, resulting in our speed-to-market falling short of benchmark. Informed by a review of global innovation best practice, we have sought to address these challenges by creating a more streamlined two-track innovation process that balances the benefits of agility with more traditional linear product development. This approach ensures continued renovation of our core products, while encouraging experimentation with high-risk, high-reward innovations that are more appropriate to meet evolving consumer demands where speed-to-market is more significant. Ignite our people Our people strategy guides us in developing and mobilising a winning culture across Team Tiger, and it leads our approach in attracting, developing and retaining the diversity in talent and leadership capabilities needed to achieve our goals of execution excellence, innovation and an agile, consumer-focused culture aligned with our new operating model. There are three pillars of our people strategy: « Talent: Building a diverse talent pipeline, with the core and future capabilities needed to accelerate execution of our business strategy and strengthen succession. « Leadership: Growing people-centric, agile and change- fit leaders who inspire execution excellence, while navigating the company through internal changes and market disruptions. « Great place to work: Nurturing our culture to create a great place to work that engages a consumer-obsessed, agile and innovative team Tiger. We have made good progress this year on each of these strategic objectives. Following the implementation of the new operating model, we have prioritised culture transformation as a critical enabler of performance. Throughout the year, we have initiated various interventions to align and empower our leaders to co-shape and lead our new culture change programme, equipping individuals and teams to own this change, and embedding and sustaining the new winning culture across the organisation. We have sharpened our focus this year on talent acquisition, accelerating the development of a diverse talent pipeline for critical skills and strengthening our efforts on building critical capabilities and on cultivating inspiring agile leaders. We made several significant appointments as part of our new operating model, including the appointment of five managing directors, one of whom is female, as well as a new chief manufacturing officer. Following the establishment of our talent acquisition hub – to prioritise the filling of critical vacancies and proactively build robust talent pools both internally and in the market – we have significantly reduced our average time to fill vacancies. This year, we made 511 new hires in critical and leadership roles with 55% of leadership vacancies filled through internal career moves and promotions. Despite a challenging landscape, our attrition rate for core and leadership roles remained steady at 10% compared with a market trend of 13%. Tiger Brands Limited Integrated annual report 2024 63 62 Tiger Brands Limited Integrated annual report 2024 Our strategic enablers continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com We have defined our innovation timeframe to capture existing and emerging opportunities over three horizons: Horizon 1 – Market penetration Innovations relating to existing products in existing channels that seek to grow consumption – for example through innovations in ingredients, packaging type and/or pack size Horizon 2 – Market development Innovations that seek to increase the footprint of an existing product – for example through innovations in channel distribution, customer engagement and/or route to market Horizon 3 – Product development/diversification Innovations that result in new products, aimed at expanding a category portfolio and/or entering a new portfolio category We are placing a strengthened focus on delivering game- changing horizon three innovations, leveraging our brand strength across our three focus areas of affordability, health and nutrition, and snackification. Competitive digital capabilities Our digital strategy provides a comprehensive framework and roadmap to leverage digital technologies to improve productivity, drive growth and enhance the experience of our customers, consumers, service partners and employees. In implementing the strategy our focus this year has been ensuring effective execution of digitisation initiatives in the following priority areas: « Supply chain: We are introducing digital systems to ensure automated and integrated supply and demand planning, and to significantly improve our efficiencies by digitising the freight desk for both import and export goods. « Competitive factories: We are continuing to make progress in automating our food safety and product quality processes, improving the tracking of non- compliances of specific suppliers, and managing the monitoring and reporting of internal quality management. « Procurement: We are improving our procurement capabilities by implementing a technology system that encompasses digital sourcing, contract management and purchase-to-pay digitisation. « Digital sales: We are making progress in digitising B2B self-service ordering and a B2B customer self-service portal. « Internal systems: As part of our drive to digitise the workplace, we are introducing self-service portals for administrative tasks, begun the phase-in of digital recruitment and on-boarding systems, and deepened the use of digital tools for employee learning. Recognising the potential contribution of AI in dramatically improving Tiger Brands’ performance, we have identified a list of AI use cases that will deliver significant benefits with minimal investment in the following areas: demand planning, supply chain optimisation, elasticity pricing, fraud detection and predictive maintenance. Competitive manufacturing Our ability to deliver long-term value for our shareholders and other stakeholders is dependent on the quality of our manufacturing operations. Through our capex programme and our operations support strategy, we are striving to build agile, fit-for-purpose operations that deliver continuous improvement in productivity as efficiently and safely as possible, ensuring product quality, operational excellence and enhanced environmental performance. Our total capital expenditure this year amounted to R0,97 billion, with investments to expand and optimise our existing capacity, upgrade infrastructure and replace ageing equipment, realise innovation opportunities, improve our energy and water security, and ensure regulatory compliance. We continue to place a particular priority on progressing manufacturing excellence custom and practice (MECP) across our operations. It is pleasing to report that we have achieved a 4,9% improvement in OEE across our prioritised sites over the past three years, with Tiger Brands now inside the Best in Class definition area for overall equipment effectiveness (OEE). We have incorporated our management of occupational safety, security, health and the environment (SSHE) into our MECP management framework, benchmarking our maturity level against industry best-practice standards. As part of our commitment to safety, we have tied safety performance to remuneration incentives at senior management levels, contributing 10% to the variable performance reward under our short-term incentive (STI) scheme. At a group level, our emphasis on behavioural safety has resulted in a marked improvement in our overall safety performance. Our total recordable case frequency rate (TRCFR) decreased from 0,28 in 2023 to 0,19 in 2024, while our lost-time injury frequency rate (LTIFR) decreased from 0,25 in 2023 to 0,19 in 2024. We are also continuing with our various activities to minimise water and energy use, increase renewable energy, and reduce food, packaging and process-related waste. Further details on our occupational health and safety performance and management activities are provided in our sustainability report. Our approach to food safety and quality is guided by globally recognised certification standards. All our food manufacturing operations comply with the Global Food Safety System Certification (GFSSC) 22000 standard, recognised by the Global Food Safety Initiative (GFSI). Additionally, all operations conduct GFSI self-assessments quarterly. Our Home and Personal Care (HPC) manufacturing operations are ISO 9001 certified. We comply with all relevant food safety legislation and regulations and maintain government certificates of acceptability for all our operations. We are advancing the implementation of a digital food safety and quality management system, now in year two of a three-year initiative to enhance our management and reporting capabilities through digitisation. The first phase is 98% complete, with various key modules developed. Phase two, currently 47% implemented, will include a system’s rollout to our Chococam factory in Cameroon. As part of our certification commitments, we regularly conduct internal audits and risk assessments across all manufacturing facilities to address and mitigate identified risks. These assessments cover products, processes, equipment and infrastructure. Last year, we reviewed our risk assessment process and initiated a new audit process aligned with the American Institute of Baking (AIB) Standard for specific food categories. Although the AIB Standard is not GFSI-recognised, it is a rigorous and credible audit standard, focusing on the production environmental and operational aspects, complementing our GFSSC 22000 certification. The auditing of all food manufacturing sites against the AIB Standard continued in 2024, with all remaining sites set for completion by November 2024. Action plans to close gaps identified in these audits are ongoing and closely monitored. All our suppliers, especially third-party manufacturers, must hold food safety certification, ideally recognised by GFSI, such as GFSSC 22000, British Retail Consortium (BRC) Global Standards, International Featured Standard (IFS), or Safe Quality Food (SQF) programme. At a minimum, Hazard Analysis and Critical Control Points (HACCP) certification is conditionally accepted. In 2024, all third-party logistics warehouses remained certified against the BRC Global Standard for warehousing and distribution. Over the last six years, we have significantly strengthened our quality and food safety systems and continue to build on this progress. Regrettably, in the first quarter of FY24, we faced some challenges in customer satisfaction, with complaints increasing by 25% compared to the same period in the prior year. In response, we have implemented site-specific action plans to address these issues, with weekly oversight meetings to track progress. This focused effort has led to significant improvements in complaint rates since Q2. For 2024 overall, we achieved 2,85 complaints per million units sold, representing a 4% decrease in complaints per million and 7% decrease in consumer complaints. We experienced no product recalls and received no notices from government authorities regarding regulatory food safety violations. Embedding food safety and product quality Tiger Brands Limited Integrated annual report 2024 65 64 Tiger Brands Limited Integrated annual report 2024 Our strategic enablers continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Sustainable agricultural sourcing This year, the increased frequency and severity of extreme weather events – as well as growing stakeholder and regulatory scrutiny on biodiversity, deforestation, human rights and fair labour practices – has highlighted the critical importance of ensuring sustainable agricultural sourcing practices. Recent weather-related events have affected the global supply of key global commodities such as cocoa beans from West Africa and oranges from the US, Spain and Brazil, while deforestation in Indonesia, Malaysia and Brazil continues to raise concerns over the sourcing of palm oil and other key commodities, leading to significant price fluctuations and supply chain challenges. Locally, heat waves have severely impacted the production of small white beans and groundnuts, while an unexpected black frost in Limpopo province, severely impacted tomato production, hampering operational efficiency at our processing plant. We are also seeing farmers shift to more reliable and profitable alternative crops, which is reducing the local availability of some key raw material inputs such as wheat and white beans in particular. These challenges have led us to explore supply options beyond South Africa’s borders, intensifying the need for alternative sourcing solutions within and beyond the SADC region, and complicating our efforts to prioritise local preferential procurement while ensuring security of supply. To reduce a potential growing reliance on imports and to combat food security challenges, we are also working more closely in partnership with local farmers. Our ethical sourcing policy, approved by the board in 2018, reflects our commitment to working with suppliers to strengthen sustainable sourcing practices. The policy, publicly available on our website, outlines the responsibilities of our staff and suppliers to mitigate supply chain risks and defines the ethical principles we adhere to, on issues such as human rights, fair labour practices, preferential procurement and environmental protection. Our engagement with suppliers on these environmental and social issues is limited to our intermediary suppliers’ sourcing and certification processes and does not extend to primary producers or farmers. We are in the process of developing a more comprehensive supplier assurance process to improve integration of the requirements of our ethical sourcing policy into our activities. Our digital procurement platform will facilitate improved supplier interactions, including through regular self-assessment questionnaires, surveys and unannounced independent audits of suppliers. At present, formal supplier audits are limited to food safety and quality, but we plan to expand these to cover human rights and environmental aspects. To mitigate the sustainability risks of high-impact raw materials, such as palm oil and cocoa, we require our intermediary suppliers to hold sustainability certifications. We regularly engage with these suppliers on their sustainability certifications and practices, with our preferred cocoa and palm oil suppliers having programmes in place aimed at lifting farmers out of poverty, eradicating child labour, achieving carbon and forest-positive outcomes, and sourcing sustainable ingredients. These suppliers are members of the International Cocoa Organization (ICCO), Fairtrade and the Supplier Ethical Data Exchange (Sedex), and are regularly audited by these bodies to ensure compliance. Our sustainability report 2024 provides a more detailed review of our approach to sustainable agricultural sourcing and to supporting suppliers through preferential procurement and enterprise development. Tiger Brands Limited Integrated annual report 2024 67 66 Tiger Brands Limited Integrated annual report 2024 Our strategic enablers continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com THUSHEN GOVENDER: Chief financial officer On a full-year basis, revenue was marginally ahead of the prior year at R37,7 billion, driven by price inflation of 7%, offset by volume declines of 6%. For the domestic business, volume declines were 8%, partially offset by strong growth in exports and international at 6% and 5% respectively. Notably within the domestic business, there was commendable volume growth from the food service channel as well as the Beverages and Pasta divisions. Overall gross margin increased to 28,3%, from the 27,7% reported in the prior year, and showed continued improvement from H1. This increase was driven by continuous improvement initiatives, including value engineering savings of recipes and packaging. Group operating income for the year was marginally ahead of the prior year at R3,1 billion, against the backdrop of implementing a new operating model and a challenging operating environment. The sale of non-core brands in H2 – Bio Classic, Crystal, Kair, Fiesta and Black Silk – together with the disposal of the Status brand in H1 generated R241 million in non-operational profit for the group. The R102 million after-tax insurance proceeds from the value-added meats product (VAMP) business is shown as profit from discontinued operation. Income from associates increased by 4% to R724 million, driven mainly by the performance from Carozzi. Net financing costs for the year amounted to R299 million compared to R238 million in the prior year, due to higher interest rates and higher debt levels in H1. The group’s effective tax rate before fair value losses, non-operational items and income from associates reduced to 28,2% from 29,0% in the previous year. Earnings per share (EPS) increased by 13% to 1 942 cents (2023: 1 725 cents). Headline earnings per share (HEPS) increased by 4% to 1 810 cents per share (2023: 1 735 cents). The variation between HEPS and EPS relates to profit on the sale of non-core brands. Encouraging operational performance In the new operating model, the business units (BUs) are classified as Milling and Baking, Grains (Maize, King Food, Jungle, Rice and Pasta), Culinary (Culinary domestic and Davita), Snacks, Treats and Beverages (STB), Home, Personal Care & Baby (HPCB) and International (the Chococam subsidiary and the deciduous fruit business). Food service solutions and exports are now allocated to the respective BUs, based on products sold, which gives a more holistic view of actual category and brand performance. In Milling and Baking, revenue declines reflect the impact of aggressive competitor pricing within the retail channel that offset the Bakeries growth initiatives in H2. Tiger Brands deliberately managed the depth of discounting and investment behind promotional activities to protect margins. In addition to this, general trade volumes for Bakeries were lower than anticipated, which management has since rectified with the appropriate activation support. A disappointing first half, with operating income lagging the prior year was remedied in H2, with operating income recovering for the same period in the prior year. This was a direct result of operational excellence initiatives and an improved maintenance regime. Leveraging technology remains a key strategic enabler for the business, and management has now implemented route management software across all bakeries. Culinary delivered strong revenue growth of 5% with price inflation of 8% offset by lower volumes of 3%. Promotional strategies were key to driving growth for the business, which continued to leverage the brand and product portfolio of Tiger Brands’ power brands via combo deals across the group and focused marketing investment. Operating income was a commendable 51% higher than the prior year, reflecting the initiatives executed to drive affordability through value engineering, which has enabled investment into price and strategically narrowed the price index to our competitors. Grains’ revenue increase of 2% to R8,5 billion was enabled by strong promotional support in H2, which focused on the carbohydrates share of the plate across all channels. Tiger Brands’ results for the 12 months ended 30 September 2024 reflect a robust set of results, on the back of the implementation of the new federated operating model, and a new management team in place from April 2024. The performance for the second half of 2024 (H2) exceeded expectations, showing credible traction. GROUP (R’million) 2024 2023 Continuing operations Total revenue 37 662,2 37 388,5 Total cost of sales (26 991,8) (27 048,2) Gross profit 10 670,4 10 340,3 Sales and distribution expenses (4 795,2) (4 702,0) Marketing expenses (856,6) (969,1) Other operating expenses (1 996,3) (1 777,9) Sundry income 101,5 167,9 Expected credit loss reversed 20,0 (59,0) Operating income before impairments and non-operational items 3 143,8 3 118,2 Impairments and fair value losses (25,5) (43,2) Operating income after impairments 3 118,3 3 075,0 Non-operational items 241,5 33,0 Profit including non-operational items 3 359,8 3 108,0 Finance costs (320,4) (267,9) Finance income 21,1 29,9 Foreign exchange loss (51,1) (33,6) Investment income 20,9 18,0 Income from associated companies 724,3 696,6 Profit before taxation 3 754,6 3 551,0 Taxation (799,3) (817,1) Profit for the year from continuing operations 2 955,3 2 733,9 Discontinued operation Profit for the year from discontinued operations 102,2 – Profit for the year 3 057,5 2 733,9 Attributable to: Owners of the parent 3 028,5 2 697,2 – Continuing operations 2 926,3 2 697,2 – Discontinued operations 102,2 – Non-controlling interest 29,0 36,7 – Continuing operations 29,0 36,7 3 057,5 2 733,9 Basic earnings per ordinary share (cents) 1 942,2 1 724,7 – Continuing operations 1 876,7 1 724,7 – Discontinued operations 65,5 – Diluted basic earnings per ordinary share (cents) 1 916,4 1 700,0 – Continuing operations 1 851,7 1 700,0 – Discontinued operations 64,7 – GM% improvement to 28,3% versus 27,7% driven by continuous improvement initiatives, including value engineering savings of recipes and packaging. Group operating income for the year was marginally ahead of the prior year against the backdrop of implementing a new operating model and a challenging operating environment. Income from associates increased by 4%, driven mainly by the performance from Carozzi. VAMP insurance proceeds. Tiger Brands Limited Integrated annual report 2024 69 68 Tiger Brands Limited Integrated annual report 2024 Chief financial officer’s review Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Volume declines were experienced across the Grains categories, except for Pasta. The rice volume decline was due to the Government of India implementing an export ban that impacted global pricing of parboiled rice, with consumers subsequently trading out of the category into more affordable carbohydrates. Management’s continuous improvement initiatives across the supply chain to reduce the cost base and enable more competitive price points started to yield results in H2, this improvement was not sufficient to reverse the H1 impact, with operating income for the full year ending 55% lower year-on-year. Driving affordability, leveraging Tiger Brands’ carbohydrate share of the plate and increasing presence in combo deals are the three key pillars of focus to restore Grains’ competitiveness. Snacks, Treats and Beverages’ business recorded strong revenue growth of 9% for the full year to R5,8 billion, with price inflation of over 9% slightly offset by volume declines of 0,1%. Seasonal promotional campaigns were well executed across all channels with campaigns focusing on digital channels and in-store activities. The food service solutions channel delivered exceptional growth for Beverages, driven by a combination of well-executed marketing initiatives, strong collaborative partnerships and a strategic product and pricing mix. Home, Personal Care & Baby’s domestic business came under pressure due to aggressive promotional activity from competitors, with Tiger Brands holding back on deep discounting to preserve its operating margin. The Home Care business was impacted by the pest season and the higher-than-expected rainfall; further to this, savings delivered by factory efficiencies were diluted by the impact of the commissioning of the new aerosol line. The export markets continue to gain traction with the appropriate focus and market support into neighbouring countries. The export channel remains a key growth driver. Strategic initiatives within the Baby business to drive combo deals across pouches and jars as well as new value offerings delivered ahead of expectations. In line with our portfolio optimisation strategy, we have signed legal agreements for the disposal of our Baby Wellbeing business, subject to regulatory approvals and completion of conditions precedent. The business is therefore recognised as held for sale and will allow management to focus on accelerating growth for the core Baby Nutrition business. International’s performance was driven by Chococam, where the solid performance negated the decline in profitability of the LAF business resulting in full-year operating income for International growing by 3%. Chococam’s revenue growth was mainly driven by the chocolate spreads category and the export markets. Management has reacted quickly with the appropriate product formulation changes and price pack architecture strategies. LAF continued to face puree pricing challenges in H2, with the market more affected by higher global stocks resulting in lower sales and lower prices. This resulted in a decline in operating income. Further details are provided in the operational review. Cash flow and capital expenditure Cash operating profit at R4,8 billion improved relative to the prior year of R4,3 billion. The benefit of slightly lower inventory days and an ongoing focus on collections, assisted by an increase in trade and other payables, resulted in improving working capital by R2,3 billion. This led to a significant increase in cash generated from operations to R5,5 billion. The group ended the period in a net cash position of R757 million (2023: net debt of R923 million). Capital expenditure for the period amounted to R0,97 billion (2023: R1,2 billion). Key capex projects for FY24 included the Aerosol HPC line, the commissioning and move of the Peanut Butter facility as well as a Jungle investment for flakes innovation. Final ordinary dividend The company declared a final ordinary dividend of 684 cents per share for the year ended 30 September 2024, in line with the company’s dividend policy of 1,75 times cover based on HEPS. Together with the interim dividend of 350 cents per share, this brings the total dividend for the year to 1 034 cents per share. Shareholders are referred to the accompanying dividend declaration in the AFS for further details. Listeriosis class action update As previously communicated, although liability in the listeriosis case has not yet been determined, the company’s attorneys have engaged with the plaintiffs’ attorneys to agree on relief to qualifying individuals who have urgent medical needs. In addition, the legal representatives are engaging in measures to arrive at a speedier resolution of the class action overall. We are committed to working diligently to bring the listeriosis class action to a close as speedily as possible. The company has product liability insurance cover appropriate for a group of its size. Coverage is subject to the terms and limits of the policy. Disciplined capital allocation Recognising the pivotal role of disciplined capital allocation in driving superior returns, we have undertaken a comprehensive reassessment of our approach to capital allocation. This recalibration to a highly disciplined capital allocation approach informed by clear targets, will bolster our business turnaround efforts while simultaneously enhancing shareholder value. We have adopted a revised capital allocation framework (see box below) that provides the cornerstone of our capital allocation strategy and guides our portfolio optimisation strategy. This framework is intended to deliver a more efficient capital structure and an accelerated capex programme aligned with our strategic objectives, efficiency targets and return metrics. Through this framework, we aim to find an optimal balance between yield-enhancing initiatives and longer-term growth investments with extended payback horizons to maximise shareholder value and foster sustainable growth. Our short to medium-term target is to deliver return on invested capital (ROIC) ahead of weighted average cost of capital (WACC). We have identified various self-improvement opportunities vital to our turnaround, including ongoing cost-saving initiatives, working capital optimisation, SKU rationalisation and performance enhancements across key business units, resulting in double-digit group operating margin over the medium term. Capital allocation framework « We will only invest in growth capital projects where project IRRs are at least 20% « We will maintain a stable ordinary dividend cover at 1,75 times cover based on HEPS « Excess cash after satisfying internal requirements including dividend will be returned to shareholders « The priority for excess cash is to repurchase shares, subject to this (i) satisfying our intrinsic value and (ii) meeting IRR criteria as well as prevailing market liquidity constraints Thushen Govender Chief financial officer December 2024 Tiger Brands Limited Integrated annual report 2024 71 70 Tiger Brands Limited Integrated annual report 2024 Chief financial officer’s review continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com MILLING AND BAKING GRAINS Financial performance R8,2 billion 10% Revenue 2023: R9,1 billion R0,63 billion 6% Operating income 2023: R0,68 billion 8% 30bps Operating margin 2023: 8% Financial performance R8,5 billion 2% Revenue 2023: R8,4 billion R0,09 billion 55% Operating income 2023: R0,20 billion 1% 130bps Operating margin 2023: 3% Our ambition To strategically increase Tiger Brands’ carbohydrates share of plate by simplifying our portfolio and boosting cost efficiencies, making our products more affordable for everyday occasions. We are committed to empowering our teams to think outside the box and unify our Grains portfolio. Albany During the period 1970 to 1980, Tiger Oats and National Milling Co acquired 36 bakeries to form Albany Bakeries. Jungle Since 1920, Jungle has fuelled our rainbow nation on a journey to greatness with natural goodness of wholesome, wholegrain rolled oats. Our ambition Albany will become South Africa’s most relevant and loved bread brand by being the lowest per unit cost producer, delivering superior quality with a relentless focus on efficiencies, to drive sustainable and profitable growth for stakeholders, powered by a highly skilled team. Revenue decreased 10% this year to R8,2 billion driven mainly by a decline in volumes as a result of an extensive maintenance programme and a deliberate strategy to enhance margins over time by reducing the reliance on promotional activity. Despite this year’s performance, we are on track with our two-year turnaround strategy aimed at restoring cost leadership and realising long-term growth opportunities through our optimised operating model. In the first six months since their appointment, the new Bakeries management team has made valuable progress in addressing some of the deep internal challenges facing the business, laying a strong foundation for our ambition of ensuring that Albany is South Africa’s top bread brand and the lowest cost per unit producer of quality bread in the country. As part of a two-year turnaround strategy, As a key contributor to Tiger Brands’ declining performance over the last five to seven years, the Grain’s business provides both some of the biggest challenges and potentially highest rewards in delivering an effective turnaround. The scale of the challenge was evident this year, with year-on-year revenue up 2% to R8,5 billion, and operating income for the year ended 55% lower at R91 million. Maize’s performance was negatively impacted this year by overall category declines driven by inflation and aggressive competitor pricing, particularly in private labels, partially offset by lower conversion costs. The sorghum-based Breakfast and Beverages business continued to deliver a muted performance, reflecting subdued demand. Jungle’s operating profit was impacted by a price increase taken in H2 and aggressive we have launched an extensive portfolio-wide bakery maintenance programme to restore bakery stability, reduce the level of damages, and improve bread and supply chain quality. Our Bakery optimisation initiatives include significant investments in equipment upgrades and replacements, rebasing the operational cost base, optimising the fleet and route-to-market, improving our depot network and ensuring timely passing through of inflationary costs. We have an extensive cost-cutting programme in place to deliver targeted savings without impacting product quality, availability and service levels. These various initiatives are progressing to plan and beginning to yield positive results. This is reflected in lower monthly operating expenses and improved product quality and availability, with some bakeries achieving up to 50% reduction in damages. These activities have been underpinned by investment in training our sales, maintenance, supervisory and management teams, and in instilling a strong performance-based culture, as well as a renewed emphasis on customer engagement. In delivering on the Group’s growth strategy, we have identified opportunities to rationalise SKUs and to drive growth through innovations in affordability, health and nutrition and snackification. We are strengthening our presence in the general trade segment through our point-of-sale and branding toolkits and focused promotional campaigns, supported by improvements in our route-to-market. Wheat regional millers remain a challenge, with their aggressive pricing and ability to offer retailers lower priced basket product offerings for combo bundles. Affordability continues to be the key driver for purchase, with a focus on ensuring relevance and presence for consumers. promotional pricing from competitors. Pasta delivered robust performance, aided by value engineering on product and pack, while Rice was impacted by Indian export bans on parboiled white rice, which saw supply constrained and customers holding back on purchases in anticipation of the lifting of these bans. Despite these challenging results, we have made some progress this year in stabilising the business. A priority strategic pillar this year was on restoring cost leadership by strengthening our price risk management strategies, delivering innovations in reformulation and packaging, and rationalising 20% of our SKUs. Throughout the year we have maintained a particular focus on operational excellence, identifying opportunities to optimise manufacturing and maintenance practices, improve productivity and product quality, and enhance our safety, health and environmental performance. In line with the Group strategy on rejuvenating brands, and executing priority growth platforms, we are prioritising investment in one power brand (Jungle) and two specialist brands (Tastic and Fatti’s & Moni’s), each of which has strong brand equity, and where we see greatest potential for growth. To leverage the power of these brands, we are partnering with Culinary to leverage meal solutions for consumers and increase Tiger’s share of every plate. We see opportunities to enhance Jungle’s relevance across consumption occasions, leveraging oats’ health credentials and the strengths of Instant Oats and Oatso to improve Jungle’s overall margin. In Rice, we are refocusing our brands based on consumer insights, unlocking the potential of identified profitable rising star products, and reducing costs through innovations in product and packaging specifications and SKU rationalisation. In Pasta, we have identified opportunities to enhance consumer relevance, improve cost competitiveness through changes in products, packaging and distribution, and improved visibility and route-to-market. Across the portfolio, we are working on stimulating sustainable growth in targeted customers in the traditional retail trade, accelerating our presence in the general trade segment, and leading in the e-commerce segment. Tiger Brands Limited Integrated annual report 2024 73 72 Tiger Brands Limited Integrated annual report 2024 Our performance Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Koo For over 80 years, KOO has been a trusted partner across millions of homes in South Africa. From memorable get togethers, hearty meals at funerals, plates brimming with pride at weddings or every day meal moments, KOO is a star feature. Energade Launched in 1993 as South Africa’s first sports drink, Energade was created to improve physical performance through hydration, and has become a beloved household name. CULINARY SNACK, TREATS AND BEVERAGES Financial performance R8,9 billion 5% Revenue 2023: R8,4 billion R0,82 billion 51% Operating income 2023: R0,54 billion 9% 285bps Operating margin 2023: 6% Financial performance R5,8 billion 9% Revenue 2023: R5,3 billion R0,72 billion 8% Operating income 2023: R0,67 billion 12% 20bps Operating margin 2023: 12% Our ambition By empowering our people and leveraging the strength of our loved brands, we will reshape our portfolio to align with market demands, becoming cost leaders through value re-engineering, and increasing our participation in everyday meal occasions by providing affordable “Plus Foods” – quality ingredients and food that elevate and stretch meals or snacks. Our ambition To become South Africa’s foremost snacks and beverages powerhouse, bringing moments of joy and refreshment to consumers and stakeholders by unleashing the full potential of our iconic, loved brands. We are committed to igniting our people and leveraging their passion for the best quality snacks and beverages in the Southern African market. Under the new federated operating model leadership and new leadership team, the business has delivered strong performance, recovering well in the second half of the year following weather-related challenges earlier in the reporting period with raw material shortages in key product lines. Revenue was up 5% to R8,9 billion, and overall operating income increased 51% to R819 million following successful execution of value engineering initiatives. We have placed a strong focus this year on embedding the new operating model and organisational culture, deepening our relationships with customers, and unlocking margins through business simplification, value engineering in recipes and packaging, enhanced distribution efficiencies and SKU rationalisation. We have developed and are executing our brand rationalisation and migration strategy, focusing our investments to accelerate growth in three prioritised power brands and three specialist brands. By reducing our SKUs by 20%, we will be delivering substantial efficiencies, maximising our cash flow and improving profit margins by reducing complexity and factory prioritisation and streamlining our inventory processes. We are driving identified growth platforms in affordable protein, convenient vegetables and every-day meal solutions, prioritising opportunities for the cash-strapped consumer through our innovations in recipes, packaging and price-pack architecture, and pack configuration. We have also made pleasing initial progress in accelerating growth in the traditional trade and expanding our presence in general trade, as well as upweighting our e-commerce contribution. Although we anticipate further possible weather-related disruptions in the local availability of certain raw materials, such as white beans, we have strengthened our procurement practices, decentralising decision-making to bring it closer to the business and broadening the geographic reach of our supplier base to reduce supply chain uncertainties. We are also exploring opportunities for strengthened partnerships with local farmers through the Tiger Brands Dipuno Fund, to combat food security challenges and decrease dependence on imported raw materials. Snacks and Treats domestically achieved revenue off the back of price inflation, offset by decline in volume. The volume decrease was mainly driven by chocolate, where reduced chocolate sales were driven by soaring input costs, notably sugar and cocoa, with the latter experiencing a c.63% year-on-year increase. Stringent cost containment measures partially safeguarded profitability. Beverages saw revenues increasing supported by volume growth and price inflation. Significant increases in the cost of key ingredients and packaging items were offset by improved factory efficiencies as well as sports drinks (Energade) performing ahead of expectations. In response to the constrained consumer environment and changing consumer preferences, we have identified specific opportunities to drive growth through innovations in affordability, health and nutrition and snackification. These include innovations in price-pack architecture, new healthier low/free from product lines, as well as new beverages offerings in the cold, ready-to-drink category, all within our consolidated brand portfolio of four market- leading power brands: Maynards, Energade and Oros. In delivering on our cost leadership ambitions – and to manage pricing and supply volatility in core raw material inputs such as orange concentrate – we are identifying opportunities for product reformulation and packaging innovation, rationalising our SKUs, and enhancing line optimisation including through automation. To ensure a superior channel presence and develop the candy and cold ready-to-drink categories, we are optimising our price-pack architecture and case configurations, developing and executing a fit-for-purpose cold availability plan, and driving innovation to increase our presence in general trade. Tiger Brands Limited Integrated annual report 2024 75 74 Tiger Brands Limited Integrated annual report 2024 Our performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Ingram’s Formulated in South Africa in 1937, Ingram’s Camphor Cream was initially created to treat dry, chapped hands. The Ingram’s brand has since evolved to represent moisture and bringing out the natural glow of African skin. Chococam In 2008, Tiger Brands purchased majority shareholding in Chococam, which is the leading manufacturer in cocoa-based products including bars and spreads, selling in Cameroon, Nigeria, and other West and Central African countries. HOME, PERSONAL CARE & BABY (HPCB) INTERNATIONAL Financial performance R3,7 billion 2% Revenue 2023: R3,6 billion R0,67 billion 2% Operating income 2023: R0,66 billion 18% 10bps Operating margin 2023: 18% Financial performance R2,6 billion 2% Revenue 2023: R2,6 billion R0,32 billion 3% Operating income 2023: R0,31 billion 12% 10bps Operating margin 2023: 12% Our ambition Empowering South Africans with homegrown, exceptional Home and Personal Care products that inspire pride and enhance lives. Our committed, skilled and focused workforce will be the engine of our execution excellence. Our ambition Chococam is a leading player in the chocolate and confectionery market in Cameroon and the CEMAC region, with strong brand presence and consumer loyalty. Langeberg & Ashton Foods has been a leader in the global market for canned deciduous fruit for over 60 years. This year, overall revenue in HPCB grew by 2% to R3,7 billion, while operating income increased by 2% to R667 million, with segments reporting mixed performance. Personal Care’s revenue was driven down by aggressive competitor activity as Tiger Brands held back on deep discounting to preserve margins. Operating income reduced as a result of reduced volumes. Home Care’s performance was negatively impacted by a poor pest season relative to the prior year, as a result of reduced rainfall. Landing competitive pricing remained a challenge which impacted performance, was slightly offset by exceptional growth from the exports side of the businesses. Under our new operating model and management team, we have made progress this year in driving cost leadership and identifying opportunities for growth in a constrained consumer environment. Current and potential cost-cutting initiatives include SKU rationalisation, manufacturing our own packaging, bringing certain brands in-house, consolidating manufacturing lines in the HPC plant, and realising procurement efficiencies. We are leveraging opportunities in price-pack architecture to offer the right product at the right price to the right shopper, de-seasonalising sales and driving new usage occasions for specific products and realising opportunities to meet specific shopper needs through innovative complementary combos across particular product ranges. We have made good initial progress in rolling out our brand rationalisation and migration strategy, with the aim of accelerating growth of our prioritised power brands and 6 specialist brands, implementing our portfolio optimisation strategy, and managing the phased exit of the balance of our brand portfolio over the short and medium term, which saw H1 sale of Status brand and H2 sale of Fiesta, Bio Classic and Crystal, Kair and Black Silk brands. We are refocusing our sales efforts, stimulating growth existing customer growth within core categories, and realising new route-to-market opportunities including in the general trade segment. Baby experienced robust growth despite a challenging competitive market bundle promotions in jars and pouches which were a key driver of this growth in nutrition. The Baby nutrition category has experienced high levels of price inflation, with driving affordability a key growth lever as parents look to exit the category in favour of whole family use products. Baby wellbeing is recognised as held for sale pending regulatory approvals and completion of conditions precedent. The Chococam business delivered exceptional revenue growth versus the prior year, mainly driven by the chocolate spreads category and the export markets. Management have reacted quickly with the appropriate product formulation changes and price pack architecture strategies. Deliberate fixed cost management initiatives during the year partially offset the impact of the cocoa beans increase resulting in minimal erosion of operating margin. LAF continued to face puree pricing challenges in H2, with the market more affected by higher global stocks resulting in lower sales and lower prices. This resulted in a double- digit decline in operating income. The solid performance from the Chococam business negated the decline in profitability of the LAF business resulting in full-year operating income for the International segment growing by 3%. Tiger Brands Limited Integrated annual report 2024 77 76 Tiger Brands Limited Integrated annual report 2024 Our performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Tiger Brands is dedicated to maintaining the highest standard of ethical leadership. Sound governance practices, underpinned by our values, are the cornerstone of our business operations and engagement with stakeholders. In 2024, the group’s delegation of authority framework was reviewed and approved by the board to align with the new operating model and the restructured business unit clusters, to ensure devolvement of decision-making in our business operations and to enable agile execution on delivery of the group strategy. The company continued to be guided by the principles set out in the King IV™* Report on Corporate Governance, the JSE Listings Requirements, the Companies Act and other relevant laws and regulations. The board confirms compliance with the requirements of these regulations and legislation, as well as the company’s memorandum of incorporation. The register confirming the extent of application of the King IV principles within Tiger Brands is available on the company’s website on www.tigerbrands.com. A more detailed review of our integration of sustainability-related issues in our governance processes is provided in our sustainability report. * Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved Board key highlights in 2024 During the period under review, the board considered and approved the following key matters at its meetings: Q1 Q2 Q3 Q4 « Monitored the business performance in the context of global and local macro-economic environment « Approved the final results, final dividend and share buy-back proposal « Considered status of the implementation of the digital strategy « Approved the divestment of the status brand « Approved the 2023 AFS, integrated report, sustainability report for distribution to shareholders « Monitored the board and senior management succession plan and approved operational model changes « Approved reconstitution of board committees « Monitored the liquidity and balance sheet « Considered progress on the implementation of the efficiency and optimisation initiatives « Monitored the stakeholder engagement initiatives « Approved the interim financial results and interim dividend « Considered proposal on options to restructure and optimise the group borrowing facilities « Monitored the ESG and climate change landscape and the impact on Tiger Brands « Considered progress with the corporate strategy implementation « Approved budget and group’s strategy « Approved the revised group’s delegation of authority framework « In addition to quarterly reviews of the class action litigation, considered further actions underway « Reviewed the working capital management plan « Monitored the brand performance scorecard Diversity by age 60 to 69 years 8 50 to 59 years 1 40 to 49 years 2 Skills and experience Diversity by gender 36% representation of women on the board against a minimum of 50% target by 2030 Women 4 Men 7 Board changes during FY24 1 Cora Fernandez stepped down as non-executive director with effect from 10 October 2023 2 Noel Doyle stepped down as executive director with effect from 31 October 2023 3 Tjaart Kruger appointed executive director with effect from 1 November 2023 4 Deepa Sita stepped down as executive director with effect from 31 December 2023 5 Thushen Govender appointed as executive director with effect from 1 January 2024 6 Gail Klintworth stepped down as non-executive director with effect from 31 May 2024 Independence Tenure 0 to 3 years 5 3 to 6 years 4 6 to 9 years 2 Our board comprises a diverse set of corporate leadership skills, experience, independence and deep industry knowledge to carry out its responsibilities objectively and effectively. Independence and separation of powers The board is led by the independent chairman, whose role is clearly defined and separate from that of the group chief executive officer. The board charter sets out a clear division of responsibilities and authority at board level, providing that no individual director has unfettered powers of decision-making or influence over the board. Frank Braeken was appointed lead independent director with effect from 1 March 2024. Emma Mashilwane stepped down from this role with effect from 29 February 2024. The role and function of the lead independent director is defined in the board charter. Diversity by race ^ Including three non-South Africans 45% representation of black board members (South African) against a minimum of 50% target by 2030 Black 8^ White 3 Independent non-executives 8 Non-executive 1 Executives 2 Business turnaround and culture transformation 2 Risk management/governance 9 Legal and commercial 1 FMCG and emerging markets 6 Finance, auditing, banking and investment 7 Brand, marketing and reputational management 1 Strategy, general management and public administration 11 Mergers and acquisition 4 Human capital and remuneration 6 Stakeholder relations and sustainability/ESG 9 Our board composition Tiger Brands Limited Integrated annual report 2024 79 78 Tiger Brands Limited Integrated annual report 2024 Protecting value through good governance Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Audit committee Committee mandate Key highlights of 2024 The committee primarily oversees the integrity of the company’s financial reporting, monitors the strength of internal financial controls and ensures the effectiveness of assurance services and functions, with particular focus on combined assurance arrangements, including external assurance service providers, the finance function and internal audit. « Oversight on the integrity and effectiveness of the financial and non-financial reporting « Oversaw the initiatives to implement the Tiger Brands digital transformation and improve cyber-security posture « Evaluated the effectiveness of the internal financial reporting controls and combined assurance model « Assessed the effectiveness of the proposed changes to the group delegation of authority framework « Considered the company’s performance, going-concern assumptions and liquidity management « Assessed the appropriateness and effectiveness of external auditors, internal audit function, finance function and the competence of the chief financial officer and company secretary « Recommended payment for the interim and final dividend to the board « Considered the accounting treatment and disclosures and the group’s impairment assessments « Assessed the processes and effectiveness of our compliance programme in relation to regulatory requirements and changes to operating environment Committee members Attendance at applicable meetings DG Wilson* (chairman) FNJ Braeken TE Mashilwane# M Sello 4/4 4/4 2/3 4/4 * Appointed as chairman of the committee effective 10 October 2023 # Appointed as member of the committee effective 10 October 2023 The audit committee report is set out on page 2 of the annual financial statements. Board committees’ composition and mandates The board committees are constituted to carry out their duties and responsibilities on behalf of the board. Annually, each committee’s terms of reference, work plan and membership are reviewed, considering prevailing governance trends, best practice standards and the appropriateness of skills required by each committee to effectively execute its mandate. The chairmen of the board committees provide feedback to the board on key issues deliberated on and decisions taken by committees, as well as matters worthy of the board’s attention. The board is satisfied that the committees effectively executed their obligations in 2024. Social, ethics and transformation committee Committee mandate Key highlights of 2024 The committee fulfils the statutory duties as set out in Regulation 43 of the Companies Act and has oversight of and reports on organisational ethics, responsible corporate citizenship, sustainable development and stakeholder relationships and assists the board in facilitating and supporting the development of transformation objectives, ensuring that the corporate culture is supportive of the approach and monitoring and reporting actual performance against these objectives. « Monitored the group’s activities in respect of good corporate citizenship « Ensured processes are in place to promote an ethical culture « Monitored the socio-economic development initiatives aimed at uplifting the communities where Tiger Brands operates « Made good progress on the targeted actions to improve diversity and inclusion « Monitored the stakeholder engagement activities and the employee relations environment « Ensured processes are in place to drive the company’s transformation objectives « Monitored progress on the implementation of initiatives to improve on skills development and preferential procurement on B-BBEE scorecard Committee members Attendance at applicable meetings TE Mashilwane (chairman) MO Ajukwu TN Kruger GA Klintworth# M Sello LA Swartz* 3/3 3/3 3/3 3/3 2/3 1/1 * Appointed as member of the committee effective 1 April 2024 # Stepped down as non-executive director of the company and member of the committee effective 31 May 2024 The social, ethics and transformation committee report is set out on page 6 of the sustainability report. Risk and sustainability committee Committee mandate Key highlights of 2024 The committee assists the board in its oversight of the management of risk and mitigation strategies across the group. « Evaluated and monitored key risks and the overall business risk profile and response plan to address the group’s risks appropriately « Considered the group sustainability strategy and the initiatives to be undertaken to achieve the applicable targets « Ensured maturity and effectiveness of enterprise risk management processes and continuously monitored the implementation of the risk management plans « Made noteworthy progress with respect to monitoring of implementation of health, safety, security and environment improvement plans « Monitored the impact of water scarcity and climate change on the company’s operating environment « Monitored the quality and food safety performance and assessed the maturity level of Tiger Brands’ food safety culture Committee members Attendance at applicable meetings M Sello (chairman) MO Ajukwu FNJ Braeken# GJ Fraser-Moleketi GA Klintworth^ OM Weber DG Wilson* 3/3 3/3 0/2 3/3 2/2 3/3 3/3 * Appointed as member of the committee effective 10 October 2023 # Stepped down as member of the committee effective 1 April 2024 ^ Stepped down as non-executive director of the company and member of the committee effective 31 May 2024 The risk management report is set out on page 40. Tiger Brands Limited Integrated annual report 2024 81 80 Tiger Brands Limited Integrated annual report 2024 Protecting value through good governance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Remuneration committee Committee mandate Key highlights of 2024 The committee assists the board in ensuring Tiger Brands’ remuneration policies and practices are aligned to the company’s objectives for value creation and are benchmarked to ensure fairness and competitiveness in remuneration of employees to attract and retain key talent and critical skills required to deliver business goals and results. « Evaluated the effectiveness of the reward strategies, including policy and practices designed to attract, motivate and retain talent « Approved the short-term incentive scorecard for FY24 targets « Considered the group’s long-term incentives plan performance conditions and targets « Continued engaging with our shareholders on remuneration policy and the implementation report to ensure appropriateness of the reward mechanism « Evaluated the implementation of the minimum shareholding requirement policy for executives « Considered the proposed bonus deferral and company matching shares scheme for implementation in FY25 Committee members Attendance at applicable meetings LA Swartz* (chairman) GJ Fraser-Moleketi TE Mashilwane^ S Sithole OM Weber DG Wilson# 5/5 5/5 3/3 5/5 5/5 5/5 * Appointed as chairman of the committee effective 10 October 2023 # Stepped down as chairman of the committee effective 10 October 2023 ^ Stepped down as member of the committee effective 1 April 2024 The remuneration report is set out on page 84. Nomination and governance committee Committee mandate Key highlights of 2024 The committee assists the board in ensuring performance of the board, its committees and directors. It reviews the composition of the board and its committees and recommends suitable candidates to fill vacancies on these governance structures, ensures the implementation of Tiger Brands’ succession plans and reviews continuous development programmes for directors. « Evaluated the board composition and skills matrix set to ensure it appropriately reflects the combination of expertise and experience required for Tiger Brands’ future « Engaged with key shareholders through the governance roadshows and deliberated on the outcomes thereof « Assessed the succession mechanism for the board, executive management and other critical skills to ensure effective talent pipelines are in place « Ensured continuous development of directors through the execution of appropriate induction and training sessions « Considered the progress on board diversity and approved the 2030 targets on board diversity « Considered directors due to retire by rotation at the company’s ensuing AGM « Ensured the implementation of the external effectiveness assessment review Committee members Attendance at applicable meetings GJ Fraser-Moleketi (chairman) FNJ Braeken# TE Mashilwane^ S Sithole LA Swartz OM Weber DG Wilson* 5/5 2/2 3/3 5/5 5/5 5/5 1/1 * Stepped down as member of the committee effective 10 October 2023 # Appointed as member of the committee effective 1 April 2024 ^ Stepped down as member of the committee effective 1 April 2024 Investment committee Committee mandate Key highlights of 2024 The committee assists the board in assessing mergers, acquisitions, investment opportunities and divestments in line with the group’s strategic objectives. « Developed the capital allocation model and put processes in place for effective implementation « Recommended the proposed divestment and disposal transactions in line with the group’s strategic objectives for board approval « Monitored the group investments performance Committee members Attendance at applicable meetings S Sithole* (chairman) FNJ Braeken GJ Fraser-Moleketi TE Mashilwane# OM Weber DG Wilson 5/5 5/5 5/5 4/4 5/5 5/5 * Appointed chairman of the committee effective 10 October 2023 # Stepped down as member of the committee effective 1 April 2024 Our executive committee In 2024, the executive committee was refreshed to ensure its composition represents a “fit for purpose” structure. Our executive committee comprises an experienced diverse team with appropriate knowledge, backgrounds and is responsible for strategy execution and the day-to-day management of operations. The executive committee meets at least monthly to consider operational issues. Women 21% Men 79% Diversity by gender Diversity by age (years) 35 to 44 years 3 45 to 54 years 8 55 to 64 years 3 Tiger Brands Limited Integrated annual report 2024 83 82 Tiger Brands Limited Integrated annual report 2024 Protecting value through good governance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Policy enhancements During the period under review, further enhancements were made to the remuneration strategy to improve alignment of critical business key performance indicators (KPIs) to measure and reward performance against our business strategy. As such, the remuneration committee approved the implementation of a revised short-term incentive (STI) scorecard that supports the achievement of key performance indicators. Compared to 2023, the weighting of financial targets was increased to stimulate a significant step change in business performance, however, the committee believes a balance was struck between financial, strategic and sustainability measures. The committee approved, after consulting shareholders, the implementation of a deferred bonus share plan, where senior management may elect to defer a portion of their STI into deferred bonus shares, which will then be matched by the company on a one-for-one basis. Both the deferred bonus shares and the company matched shares will be classified as restricted shares, that vest after three years. The committee also approved the inclusion of employees at grades A to CL in the short-term incentive scheme. All employees are now eligible to earn a short-term incentive based on performance under the rules of the STI scheme, except where wage agreements determine otherwise. This is a further step in our journey towards inspiring winning performance across all our teams and at all levels of the organisation. Our environmental, social and governance (ESG) strategy continues to be executed across our operations and associated targets to drive and measure how the ESG performance have been established. To this end, the remuneration committee approved an ESG key performance indicator (KPI) – percentage reduction in carbon emissions – and associated target for inclusion in the FY24 short-term incentive scheme scorecard (see pages 102 and 103 FY24 group and business unit performance factors, and page 104 executive directors performance scorecard FY24). The committee noted and considered the amendments to the Companies Act, announced by the president in July 2024. Once the amendments come into effect, the company will report in accordance with the Act’s provisions. Shareholder voting outcomes The remuneration committee maintains strong relationships with shareholders and strives towards high standards of disclosure of our remuneration approach to ensure that there is a clear understanding of our remuneration policy and the practices that have been adopted. The non-binding advisory votes by shareholders for the past four years are summarised as follows: Voting history February February February February % vote in favour 2024 2023 2022 2021 Remuneration policy 96,64% 73,70% 91,55% 89,20% Remuneration implementation 97,33% 53,81% 96,94% 82,24% The remuneration policy and the implementation report achieved the requisite threshold of 75% non-binding advisory approval. However, the special resolution relating to non-resident non-executive director fees did not achieve the requisite voting outcome at 65,37%. Tiger Brands is committed to continuous and robust shareholder engagement. To this end, key shareholders were engaged in response to voting outcomes. The outcomes of these engagements are addressed in the following section. Shareholder engagement The remuneration committee chairman, the chairman of the board, the lead independent non-executive director and investor relations conducted a series of engagements with key shareholders and the feedback is summarised below: 1. General feedback Shareholders acknowledged the improvements that have been made on the structure of the STI, specifically, increasing the weighting of the financial KPIs. 2. ESG metrics a. Shareholders suggested the inclusion of ESG metrics in LTI targets. Tiger Brands has a comprehensive ESG strategy (see page 21 of the Sustainability Report). This feedback is being considered as part of the target setting process for FY25. b. Shareholders also suggested that consideration be given to a more comprehensive and broader approach to ESG metrics in the STI targets. This feedback is being considered as part of the target setting process for FY25, specifically with regard to environmental sustainability. Section 1: Background statement Statement from the chairman of the remuneration committee Dear stakeholder On behalf of the remuneration committee (the committee), I am pleased to present the 2024 remuneration report, which, in compliance with best practice reporting as recommended by the King IV™ Report on Corporate Governance for South Africa, highlights: « Key components of our remuneration policy « Alignment of our remuneration policy with the Tiger Brands’ business strategy and priorities « Implementation of the policy for the year ended 30 September 2024 (FY24) During the period under review, the company implemented a new operating model and appointed new business unit heads to effectively execute on the strategic priorities. The Tiger Brands executive leadership team have focused on initiatives to drive business performance, growth and innovation while proactively navigating very challenging market conditions. The strategic priorities that focused the organisation were: « Reshape our portfolio of the future « Rejuvenate our brands « Restore cost leadership « Turbocharge general trade « Execute deliberate growth platforms These priorities are supported by the following key enablers: « Ignite our people « A future-fit operating model « Re-imagine innovation « Next-gen digital capabilities Our remuneration outcomes Following the appointment of Tjaart Kruger as the chief executive officer in November 2023, the first half of FY24 was focused on reviewing the Tiger Brands operating model and structure with the intent of enabling simplified decision-making, more agile execution as close to the consumer as possible and ultimately a step change in business performance. Six (6) empowered business units accountable for profit and loss performance, each led by a managing director, were established: Milling and Baking, Grains, Culinary, Snacks, Treats and Beverages, Home, Personal Care & Baby and International. The managing directors report directly to the chief executive officer. This simplified the business structure by removing the layer of chief growth officers. Five of the six managing directors were internal appointments, indicating a stronger talent pipeline and succession bench. The business units are supported by enabling functions which are responsible for shaping group-wide standards, processes and guardrails that enable execution of the business strategy and growth agenda. The shared services centres execute finance and people transactional activities, leveraging technology and digital solutions to realise economies of scale. The change in the operating model has enabled Tiger Brands to execute its strategy with more speed, agility and focus on the consumer despite continuing to operate in a pressurised consumer market, in the context of challenging economic conditions. The company experienced pressure on sales volumes and margins. However, as the operating model and structure settled down and economic pressures eased, the company delivered a stronger second half of the year, with visible signs of recovery reflected in the group’s performance, also driven by the turnaround plan which is starting to bear fruit. As a result, the company exceeded the threshold group EBIT target, and as such, made a provision for payment to be made in terms of the short-term incentive (STI) scheme. The performance value shares (PVS) awarded in December 2021 will vest on 3 December 2024 and 15 December 2024 respectively. For these awards, the HEPS stretch target was exceeded, resulting in a 200% vesting rate of this portion (50% of award). The achievement against the ROIC component exceeded target, resulting in a 85,81% vesting rate of this portion (50% of award). As a result, the overall vesting of the December 2021 award is at 142,91%. As reported in the previous annual report, the board and Noel Doyle jointly agreed that Mr Doyle step down as chief executive officer. He vacated office on the appointment of the current chief executive officer and proceeded on garden leave until his service termination date of 31 March 2024. The terms of the separation were disclosed in the previous report and the payments made to him, are reflected in the remuneration tables on page 102. Tiger Brands Limited Integrated annual report 2024 85 84 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Key future focus areas of the committee for FY25 The focus areas are deliberately designed to ensure the committee remains abreast of the latest remuneration market trends and best practice, business needs, as well as our responsibilities to Tiger Brands’ people, shareholders and communities to ensure that our remuneration practices enable and support the delivery of the business strategy. Key focus areas in FY25 will include: « Reviewing the STI integrated scorecard to align our people with business objectives, shareholder interests and ignite winning performance « Benchmarking of the total reward of the executive committee, non-executive directors and senior management against the set comparator group of JSE-listed companies « Consider market-aligned amendments to remuneration policy and mechanisms to drive retention « In terms of our commitment to fair and responsible pay, a continuous review of our approach to monitor and address identified pay inequities during the annual salary review process, as well as during ongoing remuneration decision points « Implement pay disclosures as regulated in relation to the Companies (first) Amendment Act (Act 16 of 2024) as promulgated on 30 July 2024 (date of implementation yet to be announced) « Continue to review our reward mechanisms and practices with a view to introducing innovative reward strategies to: + Ignite winning performance + Attract, retain and motivate key and critical talent + Embed the recognition framework and practices to improve the way we recognise execution excellence, agility and consumer-obsession External advice provided to the committee in FY24 We enlist the services of PwC South Africa for purposes of independent benchmarking, incentive scheme market practice, remuneration trends and survey data. As internal auditors, KPMG is engaged for the purposes of auditing of STI payments. As external auditors, Deloitte reviews and confirms incentive provisions and long-term incentive vesting calculations. The committee is satisfied that PwC, KPMG and Deloitte are independent and remain objective in providing the services. Voting at AGM As required by the King IVTM Code on Corporate Governance, the remuneration policy and implementation report that follow, will be tabled for separate non-binding advisory votes by shareholders at the upcoming AGM in February 2025. As required by the Companies Act, non-executive directors’ fees for the coming year will be put to shareholders by way of a special resolution. We are committed to engaging with shareholders as required to discuss issues of concern and therefore, encourage shareholders to provide feedback. Achievement of policy objectives On behalf of the committee, I am satisfied that the remuneration policy is appropriate and I am confident that our remuneration policy has achieved the desired outcomes for FY24 and is aligned with the company’s strategic goals and shareholder interests. The remuneration disclosures presented in this report have been made in compliance with the remuneration policy as approved by shareholders. No known deviations from the remuneration policy have been made in the current financial year. Lucia Swartz Chairman: Remuneration committee 4 December 2024 3. Non-resident non-executive director (NED) fees The special resolution relating to non-resident non- executive director fees did not achieve the requisite voting outcome at 65,37% with shareholders questioning the market-relatedness of the non-resident NED fee premium. Tiger Brands considered this feedback and commissioned an independent review and benchmarking of market practice within local and domicile markets and comparative non-resident NED fee approaches within those respective markets. The high-level outcome of the work conducted was that the value paid in ZAR to non-resident non-executive directors was well within our general remuneration practice guidelines. The approach agreed going forward is to implement a non-resident non-executive director fee premium range to allow for flexibility based on prevailing circumstances, specifically, comparative fee positions, local and domicile benchmarks, local and foreign market trends, NED skills and experience and consistency in practices, augmented by shareholder engagement that creates understanding of considerations that drive these fees. The remuneration committee is committed to shareholder engagement and to take the following steps, if 25% or more of total votes exercised by shareholders at the AGM are against the remuneration policy or implementation report: « Tiger Brands seeks to actively engage with dissenting shareholders by inviting them to one-on-one meetings by issuing a SENS announcement requesting shareholders to appropriately engage on their specific concerns « Tiger Brands considers the shareholder concerns and reports on the outcome of the engagements and measures taken, in its next integrated report Key focus areas, objectives and actions for FY24 In FY24, the committee executed its duties in line with the approved annual work plan, which included the following activities: « Reviewed and approved changes to the remuneration policy based on shareholder feedback and market developments « Reviewed the outcome of the voting of the remuneration and implementation reports and deliberated on shareholder feedback to focus the response « Ratified discretionary LTI awards related to the appointment of persons in senior management positions, where such awards are made in lieu of forfeited awards when they resign from a previous employer « Approved STI payments and LTI allocations to executive and senior management « Ratified group-wide business performance outcomes « Approved executive director and Exco member remuneration packages on appointment « Reviewed and approved STI audit report and recommendations « Reviewed the rules of the share incentive scheme and benchmarked appropriateness of performance conditions and targets « Approved the wage negotiation mandate for bargaining unit employees « Approved the inclusion of employees at grades A to CL in the short-term incentive scheme « Approved the salary increase mandate for employees on total remuneration packages (TRP) « Approved the remuneration for executive directors and executive committee members « Approved the STI and LTI performance conditions, targets and weightings in respect of FY25 « Recommended for approval to the board the non-executive directors’ (NEDs) fee increases « Evaluated the performance of the committee against its terms of reference « Approved the remuneration implementation report as part of the annual financial statements « Approved the remuneration policy and implementation report for inclusion in the integrated report « Reviewed and approved the LTI vesting calculations « Approved the CEO performance agreement « Approved the extension of the contract term of the CEO for a further three years (up to December 2028). Further details are disclosed on page 101 « Approval of the policy allowing voluntary deferral of up to 50% of senior management’s short-term incentive into restricted shares, which Tiger Brands will match on a one-to-one basis. Any shares issued in terms of the voluntary deferral will be committed to the MSR until such time that the MSR threshold is reached. This policy change will be implemented from FY24 « Minimum shareholder requirements: Approved the mandatory commitment to a minimum of 30% of vesting LTIs towards achieving each executive's minimum shareholding requirements Tiger Brands Limited Integrated annual report 2024 87 86 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com People strategy IGNITE OUR PEOPLE TO DELIVER WINNING PERFORMANCE BUSINESS STRATEGY Guaranteed package Benefits Short-term incentive Long-term incentive Recognition Employee wellbeing REWARD FRAMEWORK DEVELOP TALENT INSPIRE WINNING PERFORMANCE EMPLOYEE VALUE PROPOSITION The following are the key objectives of our remuneration policy: « Strengthen our ability to competitively attract and retain talent to enable the execution of our strategy « Drive Tiger Brands annual and long-term performance to enable the delivery of the business strategy « Align Tiger Brands’ people performance with shareholder interests « Ensure that reward mechanisms are simple and provide line of sight to all employees « Cement the foundation for fair, responsible and equitable pay that we have already built « Motivate and stimulate high performance across Tiger Brands through competitive guaranteed pay, short and long-term incentives We have summarised below the various remuneration elements (guaranteed package, short-term incentive and long-term incentive) that Tiger Brands offers at different levels of employment: Compensation mix FIXED COMPENSATION VARIABLE COMPENSATION Total remuneration package (Base salary, medical aid, retirement fund and insured benefits) Base salary and benefits (As per union agreement) / Bargaining unit Long-term incentive (LTI) Short-term incentive (STI) 13th cheque (As per agreement) / Executive directors / Exco / Senior management / Management / Skilled employees Section 2: Overview of remuneration policy Remuneration governance The membership of the Tiger Brands remuneration committee consists of a minimum of three non-executive directors, the majority of whom are independent. The CEO is a permanent invitee to all meetings and other executives attend the meetings by invitation. The CEO and nominated invitees are not present when matters relating to their own remuneration are discussed. The group company secretary is the secretary of the committee. The committee meets four times a year and, where necessary, additional meetings may be held. The role of the committee is to provide independent and objective assistance to the board in ensuring that Tiger Brands remunerates fairly, responsibly and transparently to promote the achievement of strategic objectives and positive performance outcomes in the short, medium and long term. As documented in the remuneration committee terms of reference the duties and responsibilities of the committee are: « Remuneration governance « Executive and senior management remuneration and performance « Non-executive director remuneration The terms of reference are reviewed annually. Fair and responsible remuneration Tiger Brands is committed to a total reward offering built on a strong foundation of fair and responsible pay that is linked to our remuneration philosophy of pay for performance. Salaries are benchmarked once a year against the REMchannel salary survey to ensure that remuneration decisions are fair and in line with market practice. We also follow a job grading methodology that is consistent and provides a fair and accurate job grade, which allows for proper salary benchmarking. Our pay progression model strives to fairly reward employees based on performance and market positioning. It enables us to actively manage outlier compensation in a fair and responsible manner and to ensure that differentials that exist are justifiable. Unjustifiable pay differentials are addressed during the annual reward review process, where we assess and adjust the salaries of unjustifiably underpaid employees, in line with the prevailing mandate. This salary adjustment is generally capped at a predetermined percentage to limit exorbitant increases. Specific focus is given to African, Coloured and female employees as well as employees in roles that are classified as scarce and critical skills. In addition, we follow a systemic approach in day-to-day decision-making by ensuring individual pay and pay scales are matched to similar roles in the market and guidelines direct decision-makers to ensure that new appointments, promotions and other pay review opportunities are executed in accordance with our set standards and parameters. At every compensation review opportunity, we consider, report and interrogate pay differentials, seen through various lenses, including gender and race. At every compensation decision point, we ensure that these differentials, where they are unjustified, are addressed with a view to continuously narrow such gaps. After each company-wide pay review, these outcomes and trends are reported to the board for approval before implementation. As a result, income differentials have closed significantly since 2018, when dedicated and structured efforts started to be applied. To maintain the focus on fair and responsible pay, Tiger Brands will perform regular analyses of compensation differentials and close gaps accordingly. Tiger Brands’ remuneration strategy The company’s remuneration strategy is aligned to the Tiger Brands’ people strategy, which is geared to enable the execution of the business strategy and accelerate business performance. Our remuneration principles have been designed to support the execution of the people strategy and are premised on our belief that great people and superior brands are at the core of our success. Our reward framework is holistic, encompassing the financial elements of reward as well as non-financial aspects such as recognition, development, the work environment, culture and meaningful work. Tiger Brands Limited Integrated annual report 2024 89 88 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Short-term incentive (STI) The primary intention of the STI is to drive business performance by focusing participants’ attention on annual key financial, strategic, functional and personal performance objectives, which are aligned with the long-term business strategy for sustainable value creation. This drives high performance by explicitly creating line-of-sight by linking group, business unit and individual performance. « All permanent employees on a guaranteed package are eligible to participate (other than employees in the bargaining unit who are eligible for a 13th cheque, governed under agreement with relevant unions) « The STI is paid annually in cash to qualifying employees, employed by the organisation on the payment date « The on-target percentage (as a percentage of guaranteed package) is benchmarked against the South African market to ensure market alignment. It is based on affordability and the STI payment is based on achieving defined objectives « The STI outcomes are determined based on a multiple of the on-target STI, which comprises three performance factors, reflecting the three dimensions of performance that are expected from employees: + A group performance factor, focused on group financial and non-financial metrics + A business unit performance factor, focused on business unit financial and non-financial metrics + An individual performance factor, focused on individual performance objectives, which allows for differentiation in rewarding high performers Payment of an STI is subject to the overriding condition that the group and business unit meets or exceeds the agreed entry threshold in respect of its earnings before interest and tax (EBIT). Calculation EBIT THRESHOLD GATEKEEPER STI Annual TRP (GP) On-target % Group performance factor (0 to 200%) Business unit performance factor (0 to 200%) Individual performance (0 to 200%) Predetermined weightings are applied to each of the performance factors ranging from 50% (threshold performance) to 200% (stretch performance). In respect of the individual performance factor, participants are rated on a rating scale ranging from one (poor performer) to five (exceptional performer). Guaranteed package (excluding bargaining unit employees) Description Guaranteed package (GP) offered to people on a total remuneration package basis (TRP) comprises base pay, allowances, retirement and medical benefits. It is reviewed annually based on personal performance against annually agreed KPIs in individual performance agreements (IPA), business performance, affordability, behaviours aligned with company values and market competitiveness (national and sector benchmarks). Benchmarks Benchmarking for executive directors is based on a comparator group of companies. The comparator group is determined using the closeness metric formula, which measures how similar a candidate company is to Tiger Brands and is based on: « Total assets « Turnover « Earnings before interest, tax, depreciation and amortisation Companies included in the comparator group comprise: Category Survey type Comparator group Executive directors Bespoke survey JSE listed comparator group* Public data of South African companies listed on the JSE, based on the closeness metric, is used to determine an appropriate comparator group AVI Limited Barloworld Limited Clicks Group Limited Dis-chem Pharmacies Limited KAP Industrials Holdings Limited Libstar Holdings Limited Mr Price Group Limited Oceana Group Limited Pick n Pay Stores Limited RCL Foods Limited The Foschini Group Limited Woolworths Holdings Limited Rest of Exco, senior management and below REMchannel® survey National and consumer goods circles * The 2022 comparator group remains suitable for benchmarking purposes Anchor point Tiger Brands anchors its pay position competitively against the national market. We aspire to achieve a normal distribution around the anchor point based on individual performance, talent, potential, experience and in certain instances, tenure. We aim to pay employees that fully meet expectations in critical roles at or above the anchor point. The performance-based increases granted annually (including those for executive directors and executive committee members) are managed within the overall salary increase budget and the pay progression model as discussed below. Benefits Benefits include retirement fund contributions, funeral cover, permanent health insurance, death-in- service cover, medical aid contributions and travel allowances (where applicable). Tiger Brands Limited Integrated annual report 2024 91 90 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com The group, business unit and individual performance weightings applicable are detailed below: Employee category Group Business unit Individual CEO, CFO and executive directors 80% 0% 20% Executive committee members: Functional executives 80% 0% 20% Executive committee members: Business unit managing directors 20% 60% 20% Other participants (Paterson grades A to E band) 0% to 40% 40% to 80% 20% Voluntary deferral into bonus shares From FY24, senior management, executives and executive directors may elect to defer up to 50% of their earned STI into bonus shares, which will then be matched by the company on a one-for-one basis. Both the deferred bonus shares and the company matched shares will be classified as restricted shares, that vest after three years. Further details are presented later in this report. Long-term incentive Description The LTI is aligned to our reward approach and operating model, taking into consideration the following principles: « Strengthen our ability to competitively attract and retain top talent to enable the execution of our business strategy « Align executive and senior management interests with those of our shareholders by driving metrics tied to company success « Align Tiger Brands’ leadership performance to our long-term strategy to promote sustainable growth and profitability Employees in Paterson grade D and above may be eligible to participate in the annual awards of the long-term incentive. The table below provides further details regarding the performance and restricted shares awarded under the long-term incentive plan: Instrument Performance shares Restricted shares Employee category Performance shares award multiple as a % of guaranteed pay Employee category Restricted shares award multiple as a % of guaranteed pay Award mechanism CEO Note: See table below for current CEO. 81,3% CEO – CFO 81,3% CFO – Executive committee members 61,0% Executive committee members – Senior management and below 10,6% to 27,7% Senior management and below 8,2% to 22,9% Performance multiplier « A personal performance multiplier is used to modify the standard quantum of performance shares and restricted shares, based on an individual’s personal sustained performance and potential « This is based on a 9-point matrix which takes into account performance over the last three years and a percentage ranging from 0% to 150% is applied on award Calculation of award quantum « TGP x (performance share award multiple x performance multiplier)/10-day VWAP on award date « TGB x (performance share award multiple x performance multiplier)/10-day VWAP on award date Vesting « Vesting is subject to the satisfaction of performance conditions over the three-year performance period and remaining in service at vesting date « Three-year time-based vesting based on anniversary of grant and remaining in service at vesting date Target and maximum In FY25, the following ranges of STI awards will apply to the various categories of people covered by this report: On-target percentage of guaranteed package Maximum percentage of guaranteed package (based on the achievement of stretch performance) CEO, CFO and executive directors 60 120 Executive committee members 60 120 Senior management (EU) 40 80 Senior management (EL) 35 70 Qualified and experienced specialists and mid-management (DU) 17,5 35 Qualified and experienced specialists and mid-management (DL) 12,5 25 Administrative, support, technical, skilled and supervisory employees (A to CU band)* 8,5 17 * Employees in the bargaining unit are eligible for a 13th cheque, governed under agreement with relevant unions and not included in the STI scheme Group and business unit performance factors The underlying values and weightings for each KPI are set and approved by the remuneration committee in advance of each year to determine parameters for the STI in the form of a balanced scorecard. The STI scorecard for 2025 is simplified so as to ensure sharper focus on key outcomes. Below is the group STI scorecard for FY25 that will be applied to the CEO, CFO, executive directors, executive committee members and other participants: Strategic KPI Threshold Target Stretch objective Weighting Key performance indicator weighting Score = 50% Score = 100% Score = 200% Performance and growth 80% Brand equity 5% 75% 100% 125% Sales volume growth 5% 50% 100% 150% EBIT (absolute) 25% 87% 100% 105% EBIT (margin) 15% 95% 100% 108% Gross margin 15% 98% 100% 102% Cash conversion rate 15% Cash generated from operations as % of EBITDA 75% 100% 110% Enablers: People and sustainability 20% Environmental sustainability: Water and electricity intensities 5% % reduction year-on-year 91% 100% 109% Quality and food safety 5% Reduction in complaints year-on-year 80% 100% 120% LTI-manufacturing 5% 92% 100% 110% Talent pipeline 5% % internal leadership appointments (C – F) 91% 100% 109% Note 1: The actual targets are not provided as they are linked to budget and considered commercially sensitive information. Note 2: The targeted percentages for “threshold”, “on-target” and “stretch” as set out above per key performance indicator represent the targeted percentage achievement of the underlying budgeted amounts. Tiger Brands Limited Integrated annual report 2024 93 92 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Bespoke share plan for Tjaart Kruger (relating to current contact ending 31 December 2025) Instrument Conditional shares Performance shares award multiple as a % of guaranteed pay Award mechanism For the current CEO, a bespoke LTI vehicle (conditional shares only) has been agreed. 100% Calculation of award quantum TGP over 24 months x conditional share award multiple/10-day VWAP for the period immediately ending prior to the announcement of Tjaart’s appointment as CEO. Vesting Vesting is subject to the satisfaction of performance conditions over the performance period, ending 31 December 2025 and the CEO remaining in service at vesting date. Performance conditions applicable to conditional shares Operating margins (weighted at 40%): « 0 – less than 9,3% « 25% vesting (threshold) – 9,3% « 100% vesting – 10,3% « 200% vesting (stretch) – 12,3% The measurement will be the average operating margin over the vesting period. Linear vesting to apply between threshold and stretch. ROIC – (weighted at 40%): « 0 – less than WACC +1% « 25% vesting (threshold) – WACC +1% « 100% vesting – WACC +3% « 200% vesting (stretch) – WACC +5% and above The measurement will be the average ROIC compared to the average WACC over the vesting period. Linear vesting to apply between threshold and stretch. Definition of ROIC: Operating income from total operations before impairments and non- operational items (reduced by the group’s average tax rate, adjusted for the effect of interest), plus the after-tax share of income from associates as a percentage of average invested capital. Invested capital comprises the book value of total equity (which is inclusive of non-controlling interests), plus long-term and short-term borrowings (including the liability arising from IFRS 16), less the value of cash on hand and cash equivalents. Invested capital is also increased by the reinstatement of any write-offs/impairments related to continuing operations (both historically as well in the current period) which is included in non-operational income of any intangible assets, fixed assets and associates. The average invested capital is determined by calculating the simple average of the aforesaid balances, based on their values at the beginning and end of the relevant financial year. Cash flow (cash conversion) – (weighted at 20%): « 0 – less than 60% of EBITDA « 25% vesting (threshold) – 60% of EBITDA « 100% vesting – 70% of EBITDA « 200% vesting (stretch) – 100% of EBITDA The measurement will be the average cash flow conversion over the vesting period (Cash available from operations/EBITDA). Linear vesting to apply between threshold and stretch. Share price « Based on the volume-weighted average price (VWAP) for a Tiger Brands share calculated for the 10-trading day period ending immediately prior to the announcement of Tjaart’s appointment as CEO Instrument Performance shares Restricted shares Employee category Performance shares award multiple as a % of guaranteed pay Employee category Restricted shares award multiple as a % of guaranteed pay Performance conditions applicable to performance shares HEPS growth (weighted at 50%): « 0 – less than CPI + GDP « 25% vesting (threshold) – CPI + GDP « 100% vesting – CPI + GDP +2% « 200% vesting (stretch) – CPI + GDP +5%1 The HEPS calculation is performed on an annual compound basis over the three-year vesting period. Linear vesting to apply between threshold and stretch. ROIC – (weighted at 50%): « 0 – less than WACC +1% « 25% vesting (threshold) – WACC +1% « 100% vesting – WACC +3%2 « 200% vesting (stretch) – WACC +5% and above The measurement will be the average ROIC compared to the average WACC over the three-year vesting period. Linear vesting to apply between threshold and stretch. Definition of ROIC: Operating income from total operations before impairments and non-operational items (reduced by the group’s average tax rate, adjusted for the effect of interest), plus the after-tax share of income from associates as a percentage of average invested capital. Invested capital comprises the book value of total equity (which is inclusive of non-controlling interests), plus long-term and short-term borrowings (including the liability arising from IFRS 16), less the value of cash on hand and cash equivalents. Invested capital is also increased by the reinstatement of any write-offs/impairments related to continuing operations (both historically as well in the current period) which is included in non-operational income of any intangible assets, fixed assets and associates. The average invested capital is determined by calculating the simple average of the aforesaid balances, based on their values at the beginning and end of the relevant financial year. Share price « Based on the volume-weighted average price (VWAP) for a Tiger Brands share calculated for the 10-trading day period ending immediately prior to the date of award/grant 1 +4% for all allocations before December 2023 2 +2% for all allocations before December 2023 Tiger Brands Limited Integrated annual report 2024 95 94 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Deferred bonus shares An amendment approved and implemented effective in 2024, is the voluntary deferral of up to 50% of the short- term incentive earned by senior managers and executives, into restricted shares (deferred bonus shares). Such a deferral is matched by the company on a one-for-one basis, also in the form of restricted shares. These deferred bonus shares and company matched shares vest after three years. Should an employee’s service end on a fault basis, they shall forfeit the company matched portion. Where executives are subject to a minimum shareholding requirement (MSR) and they have not yet achieved the required MSR, these deferred bonus shares and company matched shares will be taken into account as part of their shareholding in Tiger Brands for MSR purposes. Any shares settled upon vesting of the deferred bonus and company matching shares will automatically be committed to the MSR of the executive and held in a restricted account until expiry of the holding period. Malus and clawback The preventative aim of this policy is to remove the incentive for an executive to intentionally manipulate financial results or financial position or organisational information with the intention of financially benefiting from variable remuneration which would otherwise not have been due to such executive. These provisions align the interests of executives with the long-term interests of the organisation as well as shareholders to ensure that irresponsible behaviour is not rewarded. With respect to malus, if the remuneration committee, in consultation with the board and/or any committee of the board, believes that a trigger event has occurred, it has full discretion to reduce, in part or whole, unvested variable remuneration (i.e. STIs and LTIs) before the end of the vesting or payment period. In the case of clawback, the remuneration committee, in consultation with the board and/or any committee of the board, may implement clawback for the whole or portion of vested variable remuneration in the event of a trigger event occurring over a period of three years from the date on which payment was made of such vested variable remuneration. Trigger events include, but are not limited to: « Material misstatement of financial results « Misconduct, incompetence, fraud and dishonesty « Negligence or material breach of obligations to the company « Deliberate harm to the company’s reputation « Material failure of risk management Pay for performance link The variable pay arrangements described above have various potential outcomes. These outcomes could be from zero (minimum) to the expected level of performance outcomes (target) to the maximum potential variable pay outcomes (maximum). In the illustrations presented alongside, it should be noted that: « STI represents the cash component of short-term performance « LTI represents the total award of performance vesting shares Historical LTI information As the performance conditions have not been met, the last tranche of the share appreciation rights (SARs) allocated in December 2018 has been forfeited in full. No SARs have been awarded since December 2018. BEE shares The following two schemes were established as part of the company’s black empowerment strategy: « Tiger Brands Black Managers Trust (BMT I) + Established in 2005 to attract and retain diverse talent + Rights allocated – Tiger Brands shares. Rights are settled after making the required capital contributions to BMT I. For all rights allocated on or before 31 July 2010, settlement may take place at any time after the initial lock-in period, i.e. from 1 January 2015. For all rights allocated after 31 July 2010, the lock-in date varies depending on the date of allocation. The scheme made its final allocation in August 2022 « Thusani Trust + Established in 2005 as part of the company’s BEE Phase I empowerment initiative. The trust’s resources were enhanced in 2009 under the company’s BEE Phase II transaction + The trust provides bursaries for tertiary education to dependants of permanently employed black people who might not otherwise be able to afford this cost Dilution In compliance with the JSE Listings Requirements, the LTIP contains limits setting out the aggregate maximum number of shares that may be settled to all participants as well as the aggregate maximum number of shares to be settled to any one participant. The LTIP rules provide that these limits are not applicable where shares acquired on the JSE are used to settle LTIP awards. Although it has been Tiger’s practice in the past to purchase shares off the market upon settlement of LTIP awards (which ensured that the LTIP did not result in an impact to shareholder value), it is to be noted that, during FY24, Tiger Consumer Brands Limited, a 100% subsidiary of Tiger Brands, acquired 1 104 486 Tiger Brands shares which, as at 30 September 2024, are held as treasury shares. These shares were specifically acquired for purposes of settling shares in terms of the LTIP. On purchase of the treasury shares, shareholder value was favourably impacted. The future utilisation of these shares to settle LTIP awards will, accordingly, result in a dilution to shareholder value. On 30 September 2024, the aggregate number of shares that may be acquired by participants under the various schemes was 1 816 683 (2023: 2 200 673). Minimum shareholding policy We have a minimum shareholding policy, where senior executives are expected to build up their personal shareholding in the company over a specific period. In the case of the CEO, the target is 200% of guaranteed package while the target for executive directors and members of the executive committee is 100% of guaranteed package. Senior executives who were in service when the policy was adopted in 2016 had six years to build up their shareholding from date of adoption. Senior executives appointed after adoption have six years to build their shareholding from date of appointment. They may use any vesting LTIs or their own resources to acquire these shares. In order to accelerate the progress towards achieving minimum shareholding, this policy was amended to compel a commitment of a minimum of 30% (thirty percent) of vested long-term incentives towards their shareholding, or such portion required to reach the minimum shareholding, should it be less than 30% below the requirement. Exemption from compliance with the minimum shareholding requirements (MSR) In the case of the MSR not being met, the board retains the overriding discretion to: « Vary the minimum shareholding level or extend the determination date or reset the commencement of the build-up period for an individual executive or the executives as a whole. This will only be allowed to apply in exceptional circumstances considered as “business unusual”. « Determine that an executive has complied with the policy even if the number of shares held by an executive does not meet the minimum shareholding requirements. Such an exemption will only be allowed in exceptional circumstances where compliance will result in severe financial difficulty for an executive or prevent an executive from complying with an order of a court of law. « The current CEO is on a fixed-term contract until 2028. As his tenure will be concluded before the end of the six-year MSR period by which a CEO is required to achieve a 200% MSR, Tjaart Kruger is not obligated to meet the MSR. It needs to be noted though, that, as a statement of intent and commitment to the success of the turnaround in the company, Tjaart purchased shares to the value of R5 million early on in his tenure as CEO. « In accordance with a board decision in 2022, executives who were in service when the policy was adopted (in 2016) and who were unable to reach their minimum shareholding requirement, were granted a three-year extension to achieve the requirement. Tiger Brands Limited Integrated annual report 2024 97 96 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Executive service contracts Senior executives are employed full-time under standard agreements, with a notice period of three months and retirement age of 63. We bind all senior executives by a restraint-of-trade agreement to protect Tiger Brands’ interests (including trade secrets, confidential information and customer connections), and to prevent economic prejudice to Tiger Brands, including loss of clients and goodwill. To the extent that executives have access to proprietary business insights and intellectual property, Tiger Brands will enforce the agreement should they join a competitor. The restraint comprises a three-month notice period or three months’ special leave (paid as a three-month lump sum based on guaranteed package on termination). Sign on and specific retention payments In exceptional circumstances (mainly for the recruitment and retention of critical and/or scarce talent), Tiger Brands will award a sign on/retention payment which will be subject to the following conditions: « Employees remaining in the service of Tiger Brands as a permanent employee for an uninterrupted period of 24 months from date of the payment. Should the employee or Tiger Brands decide to terminate the employment relationship for any reason, excluding those listed below, before the expiration of 24 months, the employee will be required to repay Tiger Brands the full gross amount. There will be no pro rata refunds. Should Tiger Brands terminate the employment relationship because of operational reasons (for example, retrenchment or redundancy) or ill health, or if termination occurs as a result of death, the employee will not be required to repay Tiger Brands. Payments on termination of employment Remuneration policy Voluntary termination Involuntary termination component (i.e. resignation) (retrenchment, retirement, death) Guaranteed package Paid up to last day of service Paid up to last day of service including notice period, where applicable. Medical aid Benefit continues to last day of service Benefit continues up to last day of service. Employees who qualify for post-retirement medical aid funding will continue to receive the employer contribution with effect from their normal retirement date. Retirement and risk plans Employer contributions paid until last day of service. Employee is entitled to the value of the investment, but all risk benefits cease on termination of service. Other benefits Not applicable Severance package in respect of retrenchments – two weeks for every year of service in terms of the relevant rules. Short-term incentives No pro rata bonus paid Pro rata STI payment, based on achievement of specified financial and strategic targets for the period and a personal performance agreement being in place at the date of exit. Long-term incentives All unvested awards lapse Depending on the nature of the instrument and reasons for termination, a participant may retain all units or a pro rata portion. Accelerated vesting and settlement of retained units may apply in certain circumstances. External board appointments Under a formal policy, an executive is limited to one substantive outside directorship. The chairman of the Tiger Brands board and the nominations committee are required to authorise these appointments based on a recommendation from the CEO. Other than in respect of their appointment to the boards of associate companies, directors’ fees under this policy may be retained by the individual. During the reporting period, none of the executive committee members had external directorships. Total remuneration potential for members of executive management for the year ended 30 September 2024 CEO (R’000) Maximum On-target Minimum 23 000 11 500 13 800 6 900 11 500 11 500 11 500 LTI GP STI The above depiction mirrors the compensation of the CEO, expressed in annual terms. As reported in the previous remuneration report, this LTI vehicle is a bespoke conditional share award, associated with specifically agreed performance conditions over the period of service, directly aligned with the company turnaround and performance outcomes agreed with the board. CFO (R’000) Maximum On-target Minimum 11 437 5 719 8 441 4 220 LTI 7 034 7 034 7 034 GP STI 12 Members of the executive committee (average) (R’000) Maximum On-target Minimum 5 737 2 869 5 643 2 822 LTI 4 703 4 703 4 703 GP STI 12 Tiger Brands Limited Integrated annual report 2024 99 98 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Section 3: Implementation report In this section of the remuneration report we explain the implementation of our remuneration policy, providing details of the remuneration paid to our executive directors and members of the executive committee for the financial year ended 30 September 2024. Salary adjustments In 2023, the remuneration committee approved a 5% annual increase effective December 2023. This excludes the negotiated increases for bargaining unit employees and targeted increases to reward exceptional performance, retain critical skills and execute day-to-day internal mobility practices, such as promotions, transfers and other deployments during the financial year. 2024 guaranteed package The following increases to guaranteed packages were implemented in the reporting period for executive directors. New amounts were effective as indicated below: 1 April 2024 to 1 Nov 2023 to 30 Nov 2024 31 March 2024 % increase Executive directors TN Kruger1 11 500 000 11 000 000 4,5% 1 Dec 2023 to 1 Dec 2022 to 30 Nov 2024 30 Nov 2023 % increase TA Govender2 7 033 910 6 790 790 3,6% 1 Tjaart Kruger was appointed 1 November 2023. The board performed an interim salary review and considering parity as well as personal performance, approved a 4,5% increase in his salary effective 1 April 2024 2 Thushen Govender was appointed as CFO on 1 January 2024. His prior year compensation reflected here is relevant to his previous role CEO contract extension During September 2024, the board approved the extension of Tjaart Kruger’s contract as CEO for a further three years from expiry of his current contract, up to 31 December 2028. The terms of this extension are as follows: Guaranteed package Subject to policy and annual review by the board in line with performance and compensation benchmarking. Short-term incentive Subject to prevailing STI rules, no change from current on-target STI of 60% x GP Current long-term incentive (conditional share) plan The current two-year long-term incentive allocation will remain in place and will vest on 31 December 2025, at which point shares will be purchased in the market and the holding period of 12 months will apply prior to final vesting at the end of 2026 (31 December 2026). Future long-term incentive plan awards Future LTI awards shall be based on the same bespoke vehicle and performance conditions established in November 2023. Performance conditions and targets shall be subject to review by RemCom after three years calculated from 1 November 2023. Tranches equivalent to 100% x GP shall be awarded in December 2025, 2026 and 2027. Termination conditions At the end of the extended fixed-term contract, Tjaart will be treated as a retiree (good leaver) in line with the Tiger Brands Limited 2013 Share Plan rules and the vesting of LTIs will not be prorated (i.e. each LTI award will vest in full, subject to performance conditions after three years). Non-executive directors Fees and approval process Non-executive directors are paid an annual retainer that reflects their overall contribution and input to the company, and not just for attendance at board and committee meetings. Fees are reviewed annually and increases are implemented in March after approval at the relevant AGM. Benchmarking is conducted on an annual basis to benchmark these fees against South African companies listed on the JSE, based on market capitalisation, turnover and total assets. As these are similar metrics to that of the benchmark group for executive directors it was decided that from FY20, in line with King IVTM and in terms of the current requirements of the organisation, a single comparator group be adopted for the non-executive directors and executive directors’ remuneration benchmarking. The comparator group is detailed on page 90. The special resolution relating to non-resident non- executive director fees did not achieve the requisite voting outcome (65,37%), with shareholders not having clarity on the basis for the non-resident NED fee premium to resident NED fees. Tiger Brands considered this feedback and commissioned an independent review and benchmarking of market practice and comparative non-resident NED fee approaches. Shareholders were engaged around this matter during 2024. The agreed approach is to implement a non-resident non-executive director fee premium range to allow for flexibility based on prevailing circumstances, augmented by shareholder engagement that create understanding of considerations that drive these fees, specifically comparative fee positions, local and domicile benchmarks, local and foreign market trends, NED skills and experience and consistency in practices. Targeted remuneration for the 12-month period ended 29 February 2024 was determined through a fee benchmarking process against our selected comparator group. Non-resident non-executive directors are paid a premium in comparison to resident directors, as is common practice in our comparator group, as well as wider JSE companies with non-resident non-executive directors. Tiger Brands’ premium for non-resident non-executive directors is well below the midpoint of both these comparator groups. The chairman does not receive any additional remuneration for participating in committees of the board. Non-executive directors who perform services outside the scope of their ordinary duties will not receive additional remuneration. Shareholder approval will be sought for increasing non-executive directors’ fees, including fees paid for attending special board meetings. Details of proposed non-executive directors’ fees effective from 1 March 2024 appear in the notice of AGM of shareholders to be held on 20 February 2025. Details of non-executive directors’ fees paid in the review period appear on pages 112 and 113. Voting statement This remuneration policy is subject to a non-binding advisory vote by shareholders at the upcoming AGM. Tiger Brands Limited Integrated annual report 2024 101 100 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Mutual separation The services of the previous CEO, Noel Doyle, terminated under a mutual separation agreement with the board. His exit was subject to various conditions, including that he remains bound by restraint of trade conditions for a period of six (6) months after his formal termination. Noel Doyle’s services terminated on 31 March 2024. The financial aspects of the mutual separation agreement included: Severance payment (two weeks per year service) 3 945 533 Three months’ notice pay 2 910 180 Six months’ restraint of trade 5 820 360 Outstanding long-term incentives were treated in terms of the rules of the scheme. Unvested share awards were reduced pro rata in relation to Noel Doyle’s service period relative to the award period and shares shall vest according to the existing rules. There was no accelerated vesting of awards. 2024 short-term incentive outcomes As indicated in the policy section, the STI for executive directors is based on the combination of a group performance factor and individual performance component. Group performance factor The group performance factor (80% overall weighting) for executive directors is weighted according to the table below. Results for FY24 were as follows: STI achievement Threshold1 Target1 Stretch1 Outcome Weight Weighted result 89% 100% 111% Not achieved 5% 0% 95% 100% 105% Threshold 25% 15,82% 93%(2) 100% 107%2 Not achieved 20% 0% 96%(2) 100% 103%2 Not achieved 20% 0% 86% 100% 143% Stretch 10% 20% 83% 100% 117% Not achieved 5% 0% 94% 100% 107% Stretch 5% 10% 80% 100% 140% Stretch 5% 10% 75% 100% 125% Stretch 5% 10% 100% 65,82% 1 The targeted percentages for “threshold”, “target” and “stretch” as set out above per KPI represent the targeted percentage achievement of the underlying budgeted amounts. Calculation of achievement % is applied on a linear basis if the actual result falls between “threshold” and “target” or between “target” and “stretch” 2 Erratum: Due to a printing error, these values were marginally incorrectly stated in the 2023 report. The above values are correct and in accordance with approved targets. The error had no adverse impact on reported achievement 0% 50% 100% 150% 200% Brand equity 55,6% EBIT (Margin) 91,7% Gross margin 93,4% Quality and food safety 33,3% Working capital management 184,7% Carbon emissions 186,0% Safety (LTI-manufacturing) 115,4% Talent pipeline 137,5% EBIT (Absolute) 96,3% Tiger Brands Limited Integrated annual report 2024 103 102 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Individual performance factor The individual performance factor (20% overall weighting) for executive directors is weighted according to the table below. The results for FY24 were as follows: TN Kruger TA Govender Key performance indicators Not met Partially met Met Exceeded Not met Partially met Met Exceeded Individual KPIs Not met Partially met Met Exceeded Final outcomes for 2024 Name GP1 On-target % Actual group performance factor % x weighting (80%)2 Actual personal performance factor % x weighting (20%)3 2024 STI (rand) 2023 STI (rand) TN Kruger4 11 500 000 x 60% x 52,66% + 29% 5 164 661 n/a TA Govender 7 033 910 x 60% x 52,66% + 29% 3 446 112 0 1 Annual guaranteed package in rand as at 30 September 2024 2 Actual group performance factor determined as: 65,82% x 80% = 52,66% 3 Actual personal performance factor determined as: CEO: 145% x 20% = 29% and CFO: 145% x 20% = 29% 4 Tjaart’s STI is pro rated to 11 months as his start date was 1 November 2023 2024 long-term incentives Awards made during FY24 In FY24, performance shares were awarded to executive directors, executive committee members, senior management and middle management. Long-term incentive awards made during the year to executive directors are set out below: Long-term incentive awards to executive directors for FY24 In accordance with the Tiger Brands 2013 share plan Name LTI personal performance multiplier1 Performance shares GP Award % Number2 Face value Expected value TA Govender 100% 7 033 910 81,3% 30 240 5 718 988 7 034 355 1 The personal performance multiplier is used to modify the standard quantum of performance shares and restricted shares, based on an individual’s personal sustained performance and potential. This is a percentage ranging from 0% to 150% 2 Allocated on 18 December 2023 at VWAP of R189,12 In accordance with the bespoke allocation of shares to Tjaart Kruger Conditional shares Name GP Award % Number1 Face value Expected value 11 000 000 (year 1) TN Kruger + 11 550 000 (year 2) 100% 149 700 22 499 910 27 674 889 1 Allocated on 18 December 2023 at VWAP of R150,30 calculated for the 10-day period ending immediately prior to the announcement of Tjaart’s appointment as CEO LTI awards vesting or with a performance period ending in 2024 The outcome for awards due to vest in December 2024 and whose performance conditions ended by 30 September 2024, are shown below. This applies to all eligible participants. Performance vesting shares granted in December 2021 and vesting in December 2024 Performance Threshold Target Stretch Actual outcome Targets Weighting (25% vesting) (100% vesting) (200% vesting) achievement % vesting Headline earnings per share (HEPS) 50% CPI + GDP CPI + GDP + 2% CPI + GDP + 4% 5 246,6 cents 200 Return on invested capital (ROIC) 50% WACC + 1% WACC + 2% WACC + 5% 15,38% 85,81 Total 142,91 Share appreciation rights granted in FY19 – third tranche Minimum Actual Performance Targets Weighting target achievement outcome Headline earnings per share (HEPS) 50% 9 074,60 cents 0% Return on invested capital (ROIC) 50% 14,02% 0% Total 0% Not met Partially met Met Current minimum shareholding summary The CEO is not subject to the MSR policy by virtue of his contract term. The CEO is new to the role as a prescribed officer and will be disclosed in subsequent reports. Original Current Original Years Date of appointment to Number of value of value of value a Target remaining to Name the executive committee GP1 shares held shares held shares held2 % of GP % of GP meet target3 CXO1 5 December 2016 4 495 860 2 373 1 638 700 1 131 387 38 100 1 CXO6 6 January 2020 6 370 760 17 826 3 302 231 4 153 458 52 100 4 CXO8 1 May 2019 5 015 970 13 423 2 486 584 3 127 559 50 100 3 1 GP as at 30 September 2024 2 Value calculated with reference to the closing price of a Tiger Brands share as at 30 September 2024, i.e. R233,00 3 A three-year extension to reach MSR was provided to executives who were in service at time of the extension (May 2021) Tiger Brands Limited Integrated annual report 2024 105 104 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Payments for termination of office Payments made to Noel Doyle under the mutual separation agreement are disclosed on page 102 of this report. As a result of the restructuring of the Tiger Brands executive committee, which commenced in December 2023, the positions of chief growth officer: Grains and chief growth officer: Consumer, became redundant. Yokesh Maharaj, chief growth officer: Grains exited the organisation as a result and was treated in accordance with our retrenchment policy. Compliance with remuneration policy There were no deviations from the remuneration policy in the financial year. Single total figure of remuneration The following tables disclose total remuneration received and receivable by executive directors and executive management for the period 1 October 2023 to 30 September 2024: Executive directors TN Kruger (from appointment date 1/11/2023) TA Govender (from appointment date 1/01/2024) FY24 FY23 FY24 FY23 Remuneration element (R’000) (R’000) (R’000) (R’000) Basic salary 10 333 4 921 Retirement funding 248 Other benefits 106 Guaranteed package 10 333 5 275 Short-term incentive 5 165 3 446 SARs FY22 Long-term performance shares1 5 005 Other Total remuneration 15 498 13 726 1 FY22 performance shares awarded in December 2021 and will vest on 15 December 2024. The shares will vest at a multiple of 142,91%. Values indicative and based on the Tiger Brands closing share price on 30 September 2024 (R 233,00) NP Doyle (until termination date 31/03/2024) DS Sita (until termination date 31/12/2023) FY24 FY23 FY24 FY23 Remuneration element (R’000) (R’000) (R’000) (R’000) Basic salary 4 876 9 427 1 656 6 527 Retirement funding 806 1 545 82 330 Other benefits – – 60 251 Guaranteed package 5 682 10 972 1 798 7 108 Short-term incentive 2 5033 – – – SARs – – – FY21 Long-term performance shares1 – 10 364 5 479 FY22 Long-term performance shares2 12 428 Other 12 6764 – Total remuneration 33 289 21 336 1 798 12 587 1 FY21 performance shares awarded in December 2020 and vested on 4 December 2023 2 FY22 performance shares awarded in December 2021 and will vest on 15 December 2024. The shares will vest at a multiple of 142,91%. Values indicative and based on the Tiger Brands closing share price on 30 September 2024 (R233,00) 3 Noel’s departure was treated under specific mutual separation terms which included eligibility in accordance with Tiger Brands short-term incentives rules 4 See page 102 for a breakdown of the termination payments made to Noel Doyle, as also disclosed in the FY23 report Members of executive committee FY24 FY23 Key (R’000) (R’000) CXO1 9 891,4 6 371 CXO19 3 228,1 CXO16 3 172,8 CXO11 6 438,2 4 577 CXO14 11 422,5 5 092 CXO20 5 318,1 CXO21 2 443,3 CXO3 12 473,5 10 371 CXO18 5 638,9 CXO6 15 909,5 9 685 CXO2 1 887,5 5 486 CXO15 1 718,0 6 728 CXO4 2 833,9 6 650 CXO17 3 595,6 CXO8 10 721,5 6 865 Total 96 382,5 61 825 Notes: CXO2 resigned 29/2/2024 CXO4 retrenched 31/12/2023. Remuneration includes severance pay CXO11 appointed 1 January 2023 CXO14 appointed 1 December 2022 CXO15 moved into CFO role on 01/01/2024. Previous role remuneration reflected up to date of promotion, see table on page 106 for remuneration as CFO CXO16 appointed to Exco on 01/05/2024 CXO17 appointed to Exco on 01/02/2024 CXO18 appointed to Exco on 01/02/2024 CXO19 appointed to Exco on 01/02/2024 CXO20 appointed to Exco on 01/02/2024 CXO21 appointed to Exco on 01/02/2024; resigned 30/09/2024 Tiger Brands Limited Integrated annual report 2024 107 106 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Number and value of LTI share awards Disclosure of the quantum and value of awards for the CEO and CFO outstanding at the beginning and end of the reporting period, as well as new awards made in the period (provided in the tables on pages 104 and 105), with the cash value of awards settled during the reporting period indicated in the value-based tables: Value of Closing Granted Forfeited Performance Settled Face value Cash shares fair value Grant price Opening during during condition during Closing at award received acquired vesting Name and awards Award date Vesting date (ZAR) number the year the year achieved the year number (ZAR) (ZAR) (ZAR) (ZAR) TN Kruger1 Conditional share award 18/12/2023 31/12/2025 – – 149 700 – – – 149 700 22 499 910 – – 32 942 982 Total – – 149 700 – – – 149 700 22 499 910 – – 32 942 982 1 Tjaart Kruger’s share award is a bespoke conditional share award, associated with specifically agreed performance conditions over the period of service, to align with outcomes agreed with the board Value of Closing Granted Forfeited Performance Settled Face value Cash shares fair value Grant price Opening during during condition during Closing at award received acquired vesting Name and awards Award date Vesting date (ZAR) number the year the year achieved the year number (ZAR) (ZAR) (ZAR) (ZAR) TA Govender1 FY22 restricted shares 15/12/2021 15/12/2024 – 16 110 – – – – 16 110 2 931 537 – – 3 733 976 FY22 performance shares 15/12/2021 15/12/2024 – 5 370 – – – – 5 370 977 179 – – 1 244 659 FY23 performance shares 19/12/2022 19/12/2025 – 24 720 – – – – 24 720 5 179 334 – – 5 442 355 FY24 performance shares 18/12/2023 18/12/2026 – – 30 240 – – – 30 240 5 718 988 – – 6 326 208 Total – 46 200 30 240 – – – 76 440 14 807 038 – – 16 747 198 1 Thushen Govender was appointed as CFO on 1 January 2024 Value of Closing Granted Forfeited Performance Settled Face value Cash shares fair value Grant price Opening during during condition during Closing at award received acquired vesting Name and awards Award date Vesting date (ZAR) number the year the year achieved the year number (ZAR) (ZAR)2 (ZAR) (ZAR)3 NP Doyle1 FY21 performance shares 04/12/2020 04/12/2023 – 59 930 – – 7 611 67 541 – – 12 495 085 – – FY22 performance shares 15/12/2021 15/12/2024 – 69 700 – 16 359 – – 53 341 9 706 462 – – 12 363 377 FY23 performance shares 19/12/2022 19/12/2025 – 64 530 – 36 891 – – 27 639 5 790 923 – – 6 085 002 FY19 SARs 06/12/2018 06/12/2023 254,79 18 897 – 18 897 – – – – – – – Total 213 057 – 72 147 7 611 67 541 80 980 15 497 385 12 495 085 – 18 448 379 1 As reported in the 2023 annual report, Noel Doyle stepped down as CEO and his services officially ended on 31 March 2024 2 These amounts reflect the settled value of vested share awards 3 Number of shares x share price or expected value Value of Closing Granted Forfeited Performance Settled Face value Cash shares fair value Grant price Opening during during condition during Closing at award received acquired vesting Name and awards Award date Vesting date (ZAR) number the year the year achieved the year number (ZAR) (ZAR) (ZAR) (ZAR) DS Sita1 FY21 performance shares 04/12/2020 04/12/2023 – 31 680 – – 4 023 35 703 – – 6 605 055 – – FY22 performance shares 15/12/2021 15/12/2024 – 9 220 – 9 220 – – – – – – – FY23 performance shares 19/12/2022 19/12/2025 – 41 880 – 41 880 – – – – – – – FY22 restricted shares 15/12/2021 15/12/2024 – 72 540 – 72 540 – – – – – – – Total 155 320 123 640 4 023 35 703 6 605 055 – – 1 As reported in the 2023 annual report, Deepa Sita resigned as CFO and her services ended on 31 December 2023. All unvested awards have been forfeited Tiger Brands Limited Integrated annual report 2024 109 108 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Interests of executive directors in B-BBEE schemes Prior to his appointment as chief financial officer, TA Govender was awarded the following shares in terms of the Black Managers Trust Scheme: Value of Closing Granted Forfeited Settled Face value Cash shares fair value Opening during during during Closing at award1 received acquired vesting Name and awards Award date Vesting date number the year the year the year number (ZAR) (ZAR) (ZAR) (ZAR)2 TA Govender Tiger Brands share allocation 31/01/2022 31/01/2025 2 333 – – – 2 333 316 378 – – 467 860 31/01/2026 2 333 – – – 2 333 316 378 – – 467 860 31/01/2027 2 334 – – – 2 334 316 514 – – 468 060 Adcock Ingram share allocation3 31/01/2022 31/01/2025 1 983 – – – 1 983 75 156 – – 122 252 31/01/2026 1 983 – – – 1 983 75 156 – – 122 252 31/01/2027 1 984 – – – 1 984 75 194 – – 122 314 Oceana share allocation3 31/01/2022 31/01/2025 603 – – – 603 33 081 – – 35 975 31/01/2026 604 – – – 604 33 135 – – 36 035 31/01/2027 604 – – – 604 33 135 – – 36 035 Total 14 761 – – – 14 761 1 274 127 – – 1 878 643 1 Calculated with reference to the market value of an allocated share (less the amount of the capital contribution) as at the date of the award 2 Calculated with reference to the market value of an allocated share (less the amount of the capital contribution) as at year end (30 September 2024) 3 In addition to the award of the Tiger Brands shares, the executive was also awarded Adcock Ingram and Oceana shares (as a consequence of the unbundling by Tiger Brands of its interests in Adcock Ingram and Oceana, the Tiger Brands Black Managers Trust, as Tiger Brands shareholder, also became a shareholder of shares in Adcock Ingram and Oceana). Participants in the Trust are, consequently, also awarded shares in these two companies when awarded Tiger Brands shares DS Sita was awarded shares in terms of the Black Managers Trust Scheme during the financial year ended 30 September 2021. Value of Closing Granted Forfeited Settled Face value Cash shares fair value Opening during during during Closing at award received acquired vesting Name and awards Award date Vesting date number the year the year the year number (ZAR) (ZAR) (ZAR) (ZAR) DS Sita (left service 31 Dec 2023) Tiger Brands share allocation 31/01/2021 31/01/2024 – 2 333 2 333 – – – – – – 31/01/2025 – 2 333 2 333 – – – – – – 31/01/2026 – 2 334 2 334 – – – – – – Adcock Ingram share allocation1 31/01/2021 31/01/2024 – 1 983 1 983 – – – – – – 31/01/2025 – 1 983 1 983 – – – – – – 31/01/2026 – 1 984 1 984 – – – – – – Oceana share allocation1 31/01/2021 31/01/2024 – 603 603 – – – – – – 31/01/2025 – 604 604 – – – – – – 31/01/2026 – 604 604 – – – – – – Total – 14 761 14 761 – – – – – – 1 In addition to the award of the Tiger Brands shares, the executive was also awarded Adcock Ingram and Oceana shares (as a result of the unbundling by Tiger Brands of its interests in Adcock Ingram and Oceana, the Tiger Brands Black Managers Trust, as Tiger Brands shareholder, also became a shareholder of shares in Adcock Ingram and Oceana). Participants in the Trust are, consequently, also awarded shares in these two companies when awarded Tiger Brands shares Tiger Brands Limited Integrated annual report 2024 111 110 Tiger Brands Limited Integrated annual report 2024 Remuneration and performance continued Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Non-executive directors’ remuneration 2024 The non-executive directors’ remuneration paid for the year ended 30 September 2024 is disclosed below, excluding VAT in rand: Committee MO Ajukwu FNJ Braeken CH Fernandez GJ Fraser- Moleketi GA Klintworth TE Mashilwane M Sello S Sithole LA Swartz OM Weber DG Wilson Notes 2 1 Board fees 1 103 195 1 318 660 2 342 200 827 396 557 357 490 442 490 442 490 442 1 103 195 490 442 Audit committee fees 492 720 219 046 219 046 388 560 Remuneration committee, nomination and governance committee fees 72 774 63 282 129 412 277 141 291 097 64 706 Social, ethics and transformation committee fees 268 180 201 135 228 693 119 224 60 924 Risk and sustainability committee fees 390 568 195 284 292 926 340 329 390 568 173 633 Investment committee fees 127 490 40 312 141 104 127 490 98 519 Extraordinary fees in respect of special board meeting 116 566 116 566 50 680 58 283 25 340 50 680 25 340 50 680 116 566 25 340 Total FY24 1 878 509 2 323 495 2 392 880 1 379 740 1 134 029 1 219 721 786 298 879 186 2 028 916 1 241 200 Total FY23 1 825 344 2 129 798 1 098 975 2 275 076 1 825 344 996 215 1 160 204 320 744 638 303 1 961 216 1 031 494 Notes 1. GA Klintworth resigned 31 May 2024. 2. CH Fernandez resigned 10 October 2023. Remuneration and performance continued Tiger Brands Limited Integrated annual report 2024 113 112 Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com Forward-looking information This report contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations at the time of finalising the report. Actual results may differ materially from these expectations if known and unknown risks or uncertainties affect the business, or if estimates or assumptions prove inaccurate. Tiger Brands cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The company assumes no obligation to update or revise any forward-looking statements, even if new information becomes available as a result of future events or for any other reason, save as required by legislation or regulation. Tiger Brands Limited (Tiger Brands or the company) (Incorporated in the Republic of South Africa) Share code: TBS ISIN: ZAE000071080 Independent non-executive directors GJ Fraser-Moleketi (chairman), MO Ajukwu, FNJ Braeken, TE Mashilwane, M Sello, LA Swartz, OM Weber, DG Wilson Non-executive director S Sithole Executive directors TN Kruger (chief executive officer) TA Govender (chief financial officer) Company secretary JK Monaisa Registered office 3010 Winnie Mandela Drive Bryanston Sandton Postal address PO Box 78056, Sandton, 2146 Telephone: +27 11 840 4000 Auditors Deloitte & Touche Principal banker Rand Merchant Bank Sponsor J.P. Morgan Equities South Africa Proprietary Limited South African share transfer secretaries Computershare Investor Services Proprietary Limited Rosebank Towers, 15 Biermann Avenue Rosebank, 2196 Private Bag X9000 Saxonwold, 2132 Investor relations Barati Mahloele barati.mahloele@tigerbrands.com Erene Kairuz erene.kairuz@tigerbrands.com Website address www.tigerbrands.com Contact details Companysecretary@tigerbrands.com Investorrelations@tigerbrands.com Consumer helpline: 0860 005 342 114 Tiger Brands Limited Integrated annual report 2024 Company information Tiger Brands Limited Integrated annual report 2024 Overview Our business Our operating context Our strategy Our performance Governance Appendices www.tigerbrands.com