Q4 2012 wessanen presentation

441 views
378 views

Published on

Wessanen's Q4 2012 presentation for analysts and investors

Published in: Investor Relations
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
441
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Mar 6, 2013 Wessanen overview
  • Q4 2012 wessanen presentation

    1. 1. Wessanen 2012 overview Revenue EBIT before exceptionals 129 6,3 273 €711mln 1,8 €19mln* 113 0,0 22,0 * 205 Grocery HFS IZICO ABC Grocery HFS IZICO ABC * Incl. intercompany sales * Incl. non-allocated FTEs (average) Average Capital Employed 62 7 434 451 48 89 2,064 €240mln 37 487 630 59 Grocery HFS IZICO ABC Corporate 1 Grocery HFS IZICO ABC Corporate
    2. 2. Royal Wessanen nv Q4/FY 2012Amsterdam, 22 February 2013 www.wessanen.com
    3. 3. FY 2012: a challenging year 730 Revenue (in € mln)The economy and marketA turbulent year for the global economyOrganic market trending positively 720Our positivesGrocery continues to perform well 710Acquisition of Clipper TeasCreation of one frozen food company 0.7%Strengthening Supervisory Board 700 2011 Price/mix Volume Currency Acq/divest. 2012Our negativesPerformance HFS disappointing ♦ Autonomous third party revenue growthPostponement sale of ABC EBIT (in € mln)Sizeable goodwill impairmentsOur remedy 23,7 18,8Initiated a broad restructuring to build a more European -19,0integrated marketing-led company -45,8 2011 2012 ♦ Reported, ♦ Normalised 3
    4. 4. Grocery Showing a good performance all throughout the year In € mln Q4-12 Q4-11 Realised 4.6% autonomous growth in 2012 Revenue 68.9 58.7  6.9% in the fourth quarter Autonomous growth 6.9% Core brands growing such as Bjorg, Zonnatura and Whole Earth Normalised EBIT 6.3 1.9 Six out of eight core categories growing Impairments (15.8) (3.0) Other exceptionals (3.5) (0.5) Clipper Teas acquired, UK market leader in organic and fair trade teas EBIT (13.0) (1.6)  11% growth in 2012  In France introduced early 2013  Netherlands to follow next few months In € mln FY12 FY11 Revenue 272.8 243.9 Innovation examples:  Bjorg muesli superfruits; coconut milk cooking aid; fourré Autonomous growth 4.6% chocolat with hazelnut Normalised EBIT 22.0 18.0  Zonnatura loose green tea; squeeze fruit/vegetables  Kallo gravy granules Impairments (15.8) (3.0) Other exceptionals (4.7) 0.6 EBIT 1.5 15.6 4
    5. 5. Health Food Stores (HFS) HFS showing a disappointing performance in all three businesses In € mln Q4-12 Q4-11 France impacted by changing health food stores landscape Revenue 50.9 53.3  Rise of chains at expense independent stores  Lower sales, especially in wholesale and at fresh Autonomous growth (4.5)% Normalised EBIT 0.8 1.3 Benelux impacted by lost customers and weak performance at Fresh  Existing Natuurwinkel and independent stores growing Impairments (23.9) (19.8) Other exceptionals (6.5) (1.0) Germany impacted by weak brand performance Allos and declining revenues at Reformhaus channel (Tartex) EBIT (29.6) (19.5) Innovation examples:  Tartex pasta sauces; jubilee yeast pastries In € mln FY12 FY11  Allos crunchy (e.g. almond and cinnamon); muesli (e.g. Revenue 204.8 247.5 cranberry-Goji) Autonomous growth (5.0)% Normalised EBIT - 5.0 Impairments (23.9) (23.1) Other exceptionals (6.5) (3.7) EBIT (30.4) (21.8) 5
    6. 6. IZICO - integrated frozen foods company Acquiring non-controlling stake Favory paved the way for creation one integrated company In € mln Q4-12 Q4-11 Revenue 29.0 29.1 New management team in place Autonomous growth (0.1)% New name IZICO Normalised EBIT 0.7 0.2  easy (IZI), go (CO), ice (IZ) and company (CO) Impairments (7.0) (14.3)  Milestone plan being executed for full alignment and process Other exceptionals (6.2) (0.3) integration Beckers Benelux and Favory EBIT (12.5) (14.4) Combining both headquarters in Breda  Integration marketing & sales, operations, finance and HR In € mln FY12 FY11 Closure Favory Deurne plant as of the end of March Revenue 112.5 113.1 Autonomous growth (0.5)% Normalised EBIT 1.8 2.3 Impairments (7.0) (14.3) Other exceptionals (6.2) (0.3) EBIT (11.4) (12.3) 6
    7. 7. ABC - market leader RTD frozen pouches Capitalising on further optimisation in 2011 after significant In € mln Q4-12 Q4-11 improvement multiple processes in previous years Revenue 16.9 18.0 Strong step-up in marketing spending in $-terms  Supporting key seasonal holidays Autonomous growth (4.7)%  First-ever national TV advertising campaign Normalised EBIT (3.0) (0.5)  Broad range traditional and digital media Impairments - 0.1 Daily’s modest decline in growing RTD market Other exceptionals - 0.1  More competition emerged in frozen pouch segment  Remained clear market leader (market share; household EBIT (3.0) (0.3) penetration; repeat purchases) Innovations such as light and season-extending RTD pouches In € mln FY12 FY11 Revenue 128.6 112.6 Little Hug double digits revenue growth  Especially 20-pack and 40-pack performing well Autonomous growth 5.7%  Multi-year revitalisation process increasingly paying off Normalised EBIT 6.3 9.9 Impairments (0.1) 0.8 Other exceptionals 0.1 0.4 EBIT 6.3 11.1 7
    8. 8. ABC (cont’d) Why postponement divestment ?!  Bids not adequately reflecting fundamental value • Uncertainties attached to relatively short track record in emerging RTD frozen pouch category; perceived to be crowded competitive field  Realise better value for our shareholders at a later stage The process  Process kicked off in June  Conducted a comprehensive process  Good level of interest from strategic and financial parties Next steps  Reported as ‘continuing operations’  Clear plans / budgets in place  Labelled non-core 8
    9. 9. ‘Wessanen 2015’ Announced late November 2012 Consultation with European and local works councils have been / are taking place Wessanen will become a more consumer- and customer-led company To deliver more efficiently our strategic agenda and to adapt to the changed magnitude and circumstances of the business We have been initiating wide range of actions  To increase focus  To substantially reduce complexity  To become more profitable by reducing costs Detailed plan and timeline with numerous actions at our various businesses  Progress (including savings and staff reduction) closely monitored  Executing plans in various ‘waves’, to reduce executional risks 9
    10. 10. ‘Wessanen 2015’ - the numbers Reduction of approx. 300 FTE of which 250 forced redundancies  Grocery/HFS/Corporate ± 190FTE  IZICO ± 110 FTE Expected one-off costs  €(21) mln cash, largely accounted for in Q4, remainder in 2013  €(7.0) mln non-cash due to impairment Deurne plant Expected savings €15mln p.a. from 2014 onwards  €10 mln at Grocery/HFS/Corporate  € 5mln at IZICO  Includes lower employee / other operating expenses  Excludes any expected benefits to top-line 10
    11. 11. ‘Wessanen 2015’ - a wide range of actions Create more focus on our activities  Further increased focus on core brands and eight core categories  Expansion number of CBTs (category brand teams)  Benelux operations split in branded and distribution  French HFS operations split in branded and distribution  Integration De Rit in Germany operations Reduce complexity / simplify processes  Cutting the tail / reducing number of SKUs at • Dutch brands • French HFS brands; exiting frozen range at Bonneterre • Export  Centralising quality department  Focus on one franchise formula (Natuurwinkel), to end GooodyFooods formula  Supply chain to manage our plants as of 2013  Streamlining supply chain processes Addressing low-yielding and non-performing activities  Strongly reducing German grocery presence, changing go-to-market approach  Focus Italian grocery on non-dairy (soy) 11
    12. 12. Ronald Merckx (CFO)• Q4/FY financials 12
    13. 13. Q4/FY key figures In € million Q4-12 Q4-11 FY-12 FY-11Revenue 163.8 157.2 710.8 706.0Autonomous growth 0.7% 0.7%Gross contribution 60.9 60.5 270.5 263.6As % of revenue 37.2% 38.5% 38.1% 37.3%Normalised EBIT 1.9 (1.3) 18.8 23.7As % of revenue 1.1% (0.8)% 2.6% 3.4%EBIT (61.6) (39.9) (45.8) (19.0)Net result ¹ (61.5) (35.1) (53.2) (17.1)Earnings per share (EPS) (0.81) (0.46) (0.70) (0.23) 13 ¹ Attributable to Wessanen equity holders
    14. 14. EBIT - from normalised to reported Q4-12 Q4-11 FY-12 FY-11Normalised EBIT 1.9 (1.3) 18.8 23.7Impairments (46.7) (37.0) (46.8) (39.6)Wessanen 2015 (16.3) - (16.6) -Other exceptional costs (0.5) (1.6) (1.2) (3.1)EBIT (61.6) (39.9) (45.8) (19.0) 14
    15. 15. Impairments of goodwill and PPE Grocery UK - Kallo €(15.8) mln  Lower growth projections dairy alternatives, loss private label contract, adverse movement pre-tax discount rate (12.1%→12.7%) HFS - Tartex €(19.9) mln  Lower growth projections Reformhaus channel  Private label business negatively impacted by insolvency one of our customers HFS - Allos €(3.5) mln  Lower growth projections 2 core categories  Difficulties in passing on increased raw material costs HFS - France €(0.5) mln *  Weaker market outlook IZICO €(7.0) mln  Closure of Favory Deurne plant in March 2013* €(0.3) mln relates to goodwill and €(0.2) mln relates to other intangibles 15
    16. 16. Year end carrying value goodwill/brands In € mln Goodwill Brands Total Grocery - France 10.4 9.1 19.5 Grocery - UK (Kallo / Clipper) 11.1 10.5 21.6 Grocery - Benelux 4.6 - 4.6 HFS - Allos 9.3 2.1 11.4 HFS - Tartex - 1.2 1.2 Carrying value year end 2012 35.4 22.9 58.3At year end 2012: no carrying value of goodwill and/or brands at Grocery Italy, Grocery Germany,HFS France, HFS Benelux, IZICO and ABC 16
    17. 17. Cash flow 2012 22.2 (42.3) Increase working (7.6) capitalCash flow from 22.2earnings (26.1) Sources Net Investments (*) Increase 20.1 of net debt (**) (6.1) Dividends paid (2.5) Derivatives and FX Uses 17
    18. 18. Net debt / Leverage ratio In € mln 100 Net debt 75 €55 mln 50 25 0 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 3 Leverage ratio 1.7x 2 1 0 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 18
    19. 19. Piet Hein Merckens (CEO)• Closing remarks 19
    20. 20. Looking forward 2012 was a turbulent year for the global economy Organic food markets continue to trend positively We have made clear progress in numerous areas, however not all initiatives have resulted in desired outcome We have run a connected leadership development programme for our top-60 We have initiated a comprehensive transformation programme  As of 2014 €15 mln of savings p.a. All the right actions, full of confidence these will bear fruit 2013 will be another challenging year: “Store is open while we are renovating and innovating” 20
    21. 21. Appendices 21
    22. 22. Bridge - revenue growth 2012In € mln 730 (2.1).% 2.8% 1.8% (4.2)% (0.2)% 2.6% 0.7% 720 710 700 690 Autonomous revenue growth 680 0.7% 670 ts ix e r r cy 1 2 e pe m n 1 1 /m th en e 0 0 u p tm 2 2 O ol li ce rr C V es u ri C P iv D 22
    23. 23. Bridge: EBITE → EBITIn € mln 30 20 10 €(46.8) €(45.8) 0 ts s E e y O C FS 1 2 al IT t r en B 01 01 IC ra ce on H A EB IZ rm po 2 2 -10 ro ti or G p ai ce p C Im Ex -20 €23.7 €4.0 €(5.0) €(0.5) €(3.6) €0.2 €18.8 €(17.8) -30 -40 -50 23
    24. 24. Working capital 80 4 quarter average working capital 60 40 20 0 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 1240 q-on-q movement working capital20 0-20-40 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 24
    25. 25. Cash flow Q4 2012 3.7 (2.1)Decreaseworking 1.6 (1.6) Net Investmentscapital Derivatives and (0.5) FX 2.1 Decrease (1.6) of netCash flow debtfromearnings Sources Uses 25
    26. 26. A very sound financial position In € mln Dec 12 Dec 11 In € mln Dec12 Dec11Assets LiabilitiesProperty, plant and equipment 77.4 86.4 Total equity 101.6 166.1Intangible assets 66.8 90.6 Interest-bearing loans 60.7 37.4Investment associates/other 1.1 1.0 Employee benefits 24.1 24.0Deferred tax assets 9.2 8.8 Provisions / Deferred tax liabilities 5.4 3.9Non-current assets 154.5 186.8 Non-current liabilities 90.2 65.3 Bank overdrafts / current debt 1.4 2.9Inventories 72.3 67.5 Interest-bearing loans/borrowings 2.5 0.1Income tax receivables - 2.2 Provisions 16.8 3.3Trade receivables 85.7 78.9 Income tax payables 0.7 0.5Other receivables / prepayments 15.7 24.4 Trade payables 68.3 70.5Cash (equivalents) 9.7 8.2 Non-trade payables/accrued expenses 56.4 59.3Current assets 183.4 181.2 Current liabilities 146.1 136.6TOTAL ASSETS 337.9 368.0 TOTAL EQUITY & LIABILITIES 337.9 368.0 26
    27. 27. Financials Q4/FY - guidance 2013Financials Q4 Net financing costs €(1.1) mln Q4-11: €(0.9) mln Income tax expenses €1.2 mln Q4-11: €1.7 mln Capex €(1.2) mln Q4-11: €(3.3) mlnFinancials Full Year Net financing costs €(3.8) mln FY-11: €(3.5) mln Income tax expenses €(3.9) mln FY-11: €1.5 mln Capex €(5.7) mln FY-11: €(10.2) mlnGuidance 2013 Net financing costs €(3)-(4) mln Effective tax rate around 35% Capex €(8)-(10) mln Depreciation and amortisation €(14) mln Non-allocated expenses (incl. corporate) €(11) mln 27
    28. 28. Royal Wessanen nv Q4 2011Amsterdam, 23 February 2012

    ×