C&C : Annual Financial Report 28 Feb 2023

C&C Group plc is a leading, vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland.

C&C Group's portfolio of owned/exclusive brands include: Bulmers, the leading Irish cider brand; Tennent's, the leading Scottish beer brand; Magners, the premium international cider brand; exclusive distribution of the Budweiser Brewing Group portfolio in Ireland including Budweiser, the fifth largest long alcoholic drink ('LAD') brand; as well as a range of fast-growing, premium and craft ciders and beers, such as Heverlee, Menabrea, Five Lamps and Orchard Pig.

C&C exports its Magners and Tennent's brands to over 40 countries worldwide.

C&C has owned brand and contract manufacturing/packing operations in Co. Tipperary, Ireland and Glasgow, Scotland.

C&C is the No. 1 drinks distributor to the UK and Ireland hospitality sectors. Operating through the Matthew Clark, Bibendum, Tennent's and Bulmers Ireland brands, the Group has a market leading range, scale and reach including an intimate understanding of the markets it serves. Together this provides a key route- to-market for major international beverage companies.

C&C Group plc is headquartered in Dublin and is listed on the London Stock Exchange.

View this report online candcgroupplc.com

"Set against a challenging backdrop, we are pleased to have delivered an improved performance against all financial measures. While the complex Enterprise Resource Planning ('ERP') system upgrade within our Matthew Clark and Bibendum businesses has been more disruptive than originally envisaged and will have a material and we believe non-recurring impact on the Group's results in FY2024, it represents a key step towards our digital transformation process and will, in time, enhance C&C's unique position as the pre-eminentbrand-led distributor.

C&C's balance sheet strength together with our inherently strong free cash flow characteristics has enabled the Group to propose the reintroduction of an ordinary dividend for the first time since 2019."

Patrick McMahon

Group Chief Executive Officer & Group Chief Financial Officer

Business & Strategy

1

Contents

Business & Strategy

1. Executive Chair's Statement

1. Vision, Purpose and Values
2. Divisional Structure
3. Our Engagement with Stakeholders

1. Group Chief Executive Officer's Review

1. Strategic Report - Group Strategy

1. Strategic Report - Business Model

1. Strategic Report - How we create sustainable value

1. Strategic Report - Key Performance Indicators

1. Strategic Report - Management of Risks and Uncertainties

1. TCFD Disclosure

1. Group Chief Financial Officer's Review

1. Responsibility Report

Governance

80 Directors' Report

86 Directors and Officers

1. Corporate Governance Report

1. Audit Committee Report

1. Environmental, Social and Governance Committee Report

1. Nomination Committee Report

1. Directors' Remuneration Committee Report

1. Statement of Directors' Responsibilities

Financial Statements

1. Independent Auditor's Report

1. Consolidated Income Statement
2. Consolidated Statement of Comprehensive Income
3. Consolidated Balance Sheet
4. Consolidated Cash Flow Statement
5. Consolidated Statement of Changes in Equity
6. Company Balance Sheet
7. Company Statement of Changes In Equity
8. Statement of Accounting Policies

1. Notes Forming Part of the Financial Statements

1. Financial Definitions

235 Shareholder and Other Information

Financial Highlights

Results

Net Revenue

€1,689.0m

Increase of 18.4% on a constant currency basis

Operating Profit before Exceptional Items

€84.1m

Operating Profit after Exceptional Items

€83.9m

Balance Sheet

Liquidity

€470.3m

Net Debt/Adjusted EBITDA Including Leases

1.3x

Net Debt Including Leases

€152.7m

Cash

Free cash flow conversion before Exceptional items

64.6%

Free cash flow conversion

60.7%

Executive Chair's Statement

"The Group's strategy is focused on three distinct pillars: brand strength; system strength; and sustainability."

strategy is focused on three distinct pillars: brand strength; system strength; and sustainability. During FY2023 we continued to make significant investment to support these priorities and to consolidate our position as the leading brand-led drinks distributor serving the UK and Ireland hospitality sectors. The provenance and unique position of our core brands in

the markets they serve ensures a strong platform from which to develop our wider portfolio and we are pleased with the performance and progression of our premium portfolio.

We also continued to invest in systems with the implementation of a complex Enterprise Resource Planning ('ERP') system upgrade in our Matthew Clark and Bibendum ('MCB') business in February 2023. The implementation is a key step in our digital transformation and optimisation program in GB, designed to enhance the service we provide to our customers and in time improve efficiency and maximise our capacity utilisation through more automated processes. The implementation process has taken longer than originally envisaged, with a consequent material impact on service and profitability within MCB. The Group currently expects a one-off impact of c.€25 million associated with the ERP system disruption in FY2024, reflecting the cost associated with restoring service levels and lost revenue. There is expected to be a consequential increase in working capital in FY2024, however net debt(v) / adjusted EBITDA(ii) is expected to remain within the Group's stated range of 1.5x to 2.0x.

We were pleased to announce the disposal of our 49% shareholding in Admiral Taverns in May 2022 for total consideration of £55 million, and to have reached a long-term supply and distribution agreement with them, including the future supply of our brands.

Business & Strategy

The inherent strength of our business model and cash generating characteristics were evident again in FY2023 with a significant reduction in net debt(v) to €152.7 million and a leverage multiple of 1.3x, compared with €271 million(v) and 3.4x at the end of FY2022. Today we announce that, subject to shareholder approval, the Directors have proposed a final dividend of 3.79 cent per share to be paid on 21 July 2023 to ordinary shareholders registered at the close of business on 9 June 2023. The Group therefore looks to the future from a position of financial strength and is equipped with sufficient liquidity(vi) to execute our long-term strategy.

People and Culture

We are a business with a manufacturing footprint and depot network close to the customers and consumers we serve. We have world-class facilities and a network that is unrivalled in terms of reach and scale across the UK and Ireland. Integral to our success in optimising this advantage is identifying opportunities and responding quickly to serve the needs of our customers.

Undoubtedly, our people are at the very heart of our success, and I sincerely thank every one of my colleagues for their dedication and support for our values of customer service, quality and teamwork, and in navigating the many challenges we faced in FY2023.

We are committed to supporting our colleagues' physical and mental wellbeing, with some 50 colleagues having received mental health first aid training by the end of FY2023, and a commitment to train an additional 100 colleagues by the end of FY2024, in collaboration with our training partners JB Training to offer confidential support and advice for colleagues who may need it, when they need it, regardless of location or role function. This year, we established four Employee Resource Groups (ERGs) focused on mental health & wellbeing, physical health, working parents and menopause, as well as establishing a

Diversity, Equity & Inclusion Advisory Group. Our ERGs and Advisory Group are formed from passionate colleague volunteers

who dedicate their time and commitment to promoting a culture of diversity and inclusiveness across our business, many of whom have personal interest and experience in these areas, which helps guide our business and informs decision- making.

We are members of, and actively collaborate with, the Portman Group and Drinkaware to raise awareness of alcohol harm and to promote the responsible consumption of alcohol both with our customers and colleagues. We utilise both charities' training resources to educate our colleagues through online and virtual group training sessions, which we have made mandatory for all marketing and commercial roles, as well as opening e-learning for all colleague participation.

We are proud to work with the communities which we serve and in summer 2022,

we announced a three-year partnership with The Big Issue Group to change lives through enterprise. The partnership extends beyond fundraising to volunteering, mentoring, and offering employment opportunities to Big Issue Vendors who are ready to return to the workplace, through Big Issue Recruit. We have committed to placing 15 Vendors back in employment across the Group each year, with our first placements joining in May 2023.

The Board recognises the need to take regular temperature checks of employee engagement to continue to develop our people, culture and values. The Group undertakes two employee engagement surveys each year with the support of engagement specialists, Workday Peakon. The results and feedback are reviewed by managers and by the Board to respond to areas which require focus in order to improve our colleagues' experience at work and to ensure we channel investment into the most appropriate areas to improve our culture. In FY2023, engagement survey participation rates reached industry-leading levels and we made significant, positive improvement on our engagement score.

Undoubtedly, our people are at the very heart of our success, and I sincerely thank every one of my colleagues for their dedication and support for our values of customer service, quality and teamwork, and in navigating the many challenges we faced in FY2023.