Greggs : Preliminary Results for the 52 weeks ended 1 January 2022 08/03/22

8 March 2022

GREGGS PLC

("Greggs" or the "Company")

PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 1 JANUARY 2022

Strong team, brand and financial position;

well placed to execute ambitious strategic plan

2021 Financial highlights

• Total sales up 5.3%* on 2019 level to £1,229.7 million** (2020: £811.3 million, 2019: £1,167.9 million)
• LFL*** sales in company-managed shops 3.3% down on 2019 level
• Pre-taxprofit of £145.6 million (2020: £13.7 million loss, 2019: £108.3 million profit)
• Strong cash position supporting planned capital investment programme and special dividend
• Diluted earnings per share 114.3p (2020: 12.9p loss per share, 2019: 85.0p earnings per share)
• Final dividend of 42.0p per share recommended, taking total ordinary dividend per share to 57.0p (2020: nil, 2019: 11.9p****)
• Special dividend of 40.0 pence per share declared
• Colleague profit-sharing recommenced, will share £16.6 million with our people
• • comparison with 2019 sales considered more helpful as 2020 figures include the period of shop closure in Q2 2020
  • 52 weeks ended 1 January 2022 (2020: 53 weeks ended 2 January 2021, 2019: 52 weeks ended 28 December 2019)
  • like-for-likesales in company-managed shops (excluding franchises) with a calendar year's trading history
  • 2019 dividend reflects only the interim dividend, the final dividend of 33.0p was proposed but not paid

Strategic progress

Growing and developing the Greggs estate:

• 131 new shops opened in 2021, 28 closures (103 net openings); 2,181 shops trading as at 1 January 2022
• From 2022, targeting 150 annual net new shop openings, with the potential for at least 3,000 shops in the UK over time
• Improving the quality of our estate - 200 refurbishments planned in 2022 to support

growth in additional channels Evening trade:

• Plan to extend late opening to 500 shops in year ahead, offering core menu plus hot food trials

Delivery and digital channels:

• Extending delivery reach from 1,000 to 1,300 shops to complement evening availability
• Further recruitment of, and engagement with, Greggs App customers

Supply chain investment:

• Identifying optimal locations for future investment in supply capacity to facilitate growth ambition

ESG:

• Majority of year one Greggs Pledge targets met, including:
• • food waste reduction both in our shops and our manufacturing sites; and
  • extending the proportion of items on our shelves that are healthier choices

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Current trading

• In first nine weeks of 2022, LFL sales in company-managed shops up 3.7% compared to the 2020 level
• For same period LFL sales in company-managed shops up 44.2% against lockdown- affected period in 2021

"Our results and achievements in 2021 show that we have emerged from the pandemic both stronger and better as a business. I would like to thank, once again, all of our teams across the country who rose so well to meet the challenges of the last two years.

"We have started 2022 well, helped by the easing of restrictions. Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however given this dynamic we do not currently expect material profit progression in the year ahead.

Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting. Our investment over recent years has left the business well-placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multi-channel business."

• Roger Whiteside OBE, Chief Executive

ENQUIRIES:
Greggs plc	Hudson Sandler
Roger Whiteside, Chief Executive	Wendy Baker / Hattie Dreyfus / Nick Moore
Richard Hutton, Finance Director	Tel: [phone]
Tel: [phone]

An audio webcast of the analysts' presentation will be available to download later today at http://corporate.greggs.co.uk/

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Chair's statement

Greggs returned to the front foot in 2021. With a strong team, brand and financial position we are well placed to embrace the many strategic opportunities ahead of us. We have an ambitious plan and the resources to pursue it for the benefit of all of our stakeholders.

Overview

2021 was a year of further recovery for Greggs as we navigated the ongoing challenges posed by the pandemic and set out a clear strategic plan to address the opportunities that lie ahead. An ability to react quickly to changing conditions has been crucial in recent years and the Greggs team has demonstrated this agility, delivering a strong 2021 financial result in the face of ongoing disruption to demand and in our supply chain.

At the same time we have remained focused on our responsibilities to colleagues and the broader stakeholder community. By publishing The Greggs Pledge we set out clear environmental and social commitments in those areas where we believe we can make the most impact as we seek to build on Greggs strong reputation as a responsible business.

The Board's strategy review was of particular importance in 2021 as we reflected on the learnings of the past year and their implications for our plans. The result is an ambitious strategic plan, founded on broadening access to Greggs across the day and also through new shops and channels. We believe that Greggs' brand strength and the breadth of its customer offer makes the business well-placed to grow quickly as the economy recovers.

Our people and values

The Board makes considerable efforts to stay close to the Greggs team, making sure that we are in tune with the business challenges and issues that they encounter. In the face of continued challenges from a pandemic-affected trading environment our colleagues, once more, responded magnificently, and the Board does not take this for granted. We were pleased to support proposals to bring forward by five months the annual pay award for colleagues to thank them for their contribution in 2021.

A particular focus for the business in recent years has been the desire to progress the equality and diversity agenda. As part of Greggs' ambition to achieve the National Equality Standard (NES) the Board engaged in a training session and reviewed business progress across a wide range of inclusivity initiatives. Directors also attended special interest groups designed to represent the needs of colleagues and promote equality of opportunity. Whilst there is more to do to reach the NES standard the Board is encouraged by the strong progress being made from a solid base, given Greggs' values-driven approach.

In the face of the challenges of the past two years the Board considers it more important than ever to support the work of the Greggs Foundation in the communities where we operate. The charity, independent of, but supported by, the Company has been working to build stronger, healthier communities for 35 years. The Greggs Foundation has been chaired for the past 20 years by Andrew Davison OBE, who retired from this voluntary role in 2021. I would like to record the Board's immense gratitude to Andrew for his leadership and commitment over so many years, and for the impact that this has had on so many people. We look forward to working with Andrew's successor, Joanna Dyson OBE, to further the work of the Greggs Foundation over the years ahead.

Another important relationship has been with the trustee of the Company's legacy defined benefit pension scheme. Richard Bottomley OBE has recently retired from chairing the trustee group, a position he held for twelve years, and leaves the scheme in a very strong position. On behalf of

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the Company and the scheme's members I would like to thank Richard for the great progress made under his period of stewardship.

The Board

The Board has a plan in place for succession for both Executive and Non-Executive Directors. In March 2021 I explained that, although under the UK Corporate Governance Code I would have normally been expected to step down as Chair, the Board had asked me to remain in place to provide continuity of leadership as we addressed the Chief Executive's succession.

In 2021 the Company's Nominations Committee commenced a recruitment process to address Chief Executive succession as Roger Whiteside approached retirement age. The Committee appointed an executive search firm to conduct a comprehensive search, which considered internal and external candidates. The quality of candidates was strong and, following a rigorous process, the Committee recommended the appointment of Roisin Currie, Greggs Retail and Property Director, as Chief Executive to succeed Roger Whiteside. Roisin was appointed as Chief Executive Designate and as an Executive Director on 1 February 2022 and will take over as Chief Executive at the end of the Company's Annual General Meeting on 17 May 2022. Roger Whiteside will step down from the Board at the close of the AGM but will remain available to support the transition process until 5 January 2023.

Roger has led Greggs through a period of extraordinary and sustained success and I would like to thank him for his exceptional leadership since his appointment in 2013. His straightforward, personable and engaging style has engendered great trust within the business and an enthusiastic following amongst all our stakeholders. I would like to wish Roger a long and happy retirement.

As part of our plan to phase succession of Non-Executive Directors the Board announced the appointment of Mohamed Elsarky as an independent Non-Executive Director in June 2021, and Peter McPhillips retired as an independent Non-Executive Director in July 2021. Sandra Turner, Senior Independent Director, took over from Peter as the Non-Executive Director responsible for overseeing colleague engagement.

In the second half of 2022 the Nominations Committee will commence activity to identify my successor as Chair of the Board. As previously communicated, I expect to remain in position only as long as is necessary to ensure a good transition to the new Chief Executive and whilst the process of identifying my successor takes place.

Further details of the Board's work are included in the governance and committee sections of the annual report.

Dividend

At the time of the interim results in August 2021 the Board declared an interim ordinary dividend of 15.0 pence per share and stated its intention to return to a full-year ordinary dividend that is around two times covered by underlying earnings after taxation (profit after tax excluding exceptional items). In line with this ordinary dividend policy, the Board intends to recommend at the AGM a final dividend of 42.0 pence per share (2020: nil), giving a total ordinary dividend for the year of 57.0 pence (2020: nil).

Going forward our dividend policy will continue to target a progressive ordinary dividend, normally around two times covered by profit after taxation, with further surplus cash being returned to shareholders as appropriate. Having taken into account our strong balance sheet position and the Company's investment and working capital requirements, and the intention to maintain our

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progressive ordinary dividend policy, the Board has declared an additional special dividend of 40.0 pence per share (2020: nil), to be paid in April.

Our Finance Director, Richard Hutton, outlines the expected application of the distribution policy in more detail in the financial review.

Looking ahead

Greggs has once again demonstrated its resilience and the cash-generative nature of its business model. It is a great business with an excellent team, and although short-term trading conditions remain challenging we have great confidence in the opportunities that lie ahead and strong liquidity to support our investment plan that will unlock further growth.

Ian Durant

Chair

8 March 2022

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