Wessanen 21 nov2012 delft course light

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Wessanen overview ppt, used for course Corporate Communications at Delft University.

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  • Wessanen 21 nov2012 delft course light

    1. 1. Royal Wessanen nv Overview presentation MSc Science Education and Communication Course Corporate Communications Delft, 21 November 2012www.wessanen.com @RoyalWessanen
    2. 2. In a nutshellA leading European organic food player Own operations in Benelux, France, Germany, Italy, UK + export operations Pioneering brands | indulgence & nutritional Well-managed supply chain | Strong focus on quality, innovations, brands Factories in UK (tea), Germany (vegetable spreads) (cereals/bars/spreads/honey) and Italy (soy drinks) Turnover about €600mln (2011) | 1,600 employeesOrganic food market Attractive part of food market | growing | low per capita consumption | market size €21bn No colouring/flavouring | GMO-free | no artificial fertilisers | animal health Unique certification system | grown and processed according to EU regulation 2
    3. 3. 2011 revenue €594 mlnGrocery HFS (Health Food Stores)Revenue €244 mln Revenue €248 mlnNorm.EBIT €18.0 mln Norm. EBIT €5.0 mln 41% 19% 40%Frozen Foods Non-allocated & eliminationsRevenue €113 mln Revenue €(11) mlnNorm. EBIT €2.3 mln Norm. EBIT €(11.5) mln Discontinued operations ABC Revenue €113 mln Norm. EBIT €11 mln 3
    4. 4. Wessanen FY2011 overview Revenue EBIT before exceptionals excl non-allocated 2,3 113 244 5,0 €589mln €14mln 18,0 248 Grocery HFS FF Grocery HFS FF FTEs (at year end) Average Capital Employed 63 11 379 63 51 501 1,582 €208mln 639 84 4 Grocery HFS FF HQ Grocery HFS FF HQ
    5. 5. ContentPage6. A rich history10. What is organic? / markets13. Our Vision, mission & strategy20. Strategic objectives 2012-1433. Our business principles / sustainability39. Social mediaAppendix - Financials 5
    6. 6. A long and rich history 1765 - Incorporated around river De Zaan  Adriaan Wessanen started to trade in mustard, canary and other seeds Around 1910 introducing first consumer products such as oatmeal and cocoa 1913 - Distinguished title Royal (99 years !) 1959 - Listed on Euronext Amsterdam 2009 - Strategic reorientation  focus on organic food in Europe 2012 - To make our organic brands most desired in Europe 2015 - Marking 250th anniversary of Wessanen 6
    7. 7. First day of trading atAmsterdam stock exchange9 September 1959 7
    8. 8. A long and rich historyMultiple acquisitions and divestments Wessanen sales 1958-2011 4000 3000 2000 1000 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 8
    9. 9. Transformation 2009-12In € mln 1,586 KK, LR, Righi, PANOS1600 TOL NA ABC * Frozen Foods1200 Kalisterra Tree of Life UK Clipper (March 12) 800 712 706 694 Health Food Stores (HFS) Grocery 400 0 2009 2010 2011 2011 Pro FormaAs of 2009: focus on organic food in Europe 9
    10. 10. What is organic?! Strict criteria to be allowed to be labelled organic Demonstrably free from GMO, pesticides and growth hormones Strict rules on animal welfare Severe restrictions on fertilisers, herbicides and pesticides Severe restrictions on additives and processing aids All about being produced and processed in line with organic principles Organic products promote health and well-being Holding benefits for the planet and for future generations All about nutrition and taste ! Organic food is controlled by a unique European certification system At Wessanen, our vision is to make our organic brands most desired in Europe 10
    11. 11. Attractiveness organic food markets European organic food an attractive, growing segment  Size €21 bn; 2011 growth around 6%  <3% of total European food market Increasing consumer appreciation Still low per capita consumption  European Union €30 p.a.  Switzerland €150, Denmark €140, Austria €115, Sweden €85  Germany €75, France €55, Netherlands €50, Belgium €40  UK €25, Italy €20, Spain €15 Consumers increasingly convinced of benefits of organic food regarding health, taste and environment Grocery and Health Food Stores channels developing at different growth path  Decline percentage of households shopping in HFS channel in the Netherlands halted 11
    12. 12. 12
    13. 13. Our Vision “To make our organic brands most desired in Europe” GROCERY HEALTH FOOD STORES 13
    14. 14. Our Mission “Our organic food, your natural choice” 14
    15. 15. Wessanen’s Strategy ARENAS  Healthy & sustainable nutrition through organic food in EuropeSTAGING VEHICLES Boost growth of current  Own/build organic business and resolve ‘big pioneering brands in all bets’ (OGSM!) ECONOMIC LOGIC relevant food channels At least one major  Preferred brands that can  Focus on sizeable, growing acquisition p.a. command a premium markets and categories Divest non-core businesses  European scale (COGS, where organic creates at sensible speed innovation, expertise) value  Acquire businesses with strong brands and European potential DIFFERENTIATORS  Preferred brands and impactful innovation  Superior product quality  Orchestration of a fast, flexible and efficient value chain  We are Europe’s No 1 and committed to Organic: our people have credibility and expertise (OEC) and we provide the most comprehensive thought leadership, service, consumer insight, product range 15
    16. 16. Three business models Business Description Countries, Brands & Entities Sourcing/developing, marketing France: BjorgGrocery and selling own brands Benelux: Zonnatura, Biorganic, Merza Brands • Including distribution to distribution UK: Clipper, Kallo, Whole Earth centers and/or stores Germany: Whole Earth, Culinessa, Bjorg Italy: Bjorg, Efficance Sourcing/developing, marketing France: Bonneterre, EvernatHealth Food Stores (HFS) and selling own brands to HFS NL: Ekoland, De Rit Brands • Via wholesaler in Germany Germany: Allos, Tartex, De Rit • Direct to stores (France, NL) Sourcing, category management, France: Bonneterre, Biodistrifrais Whole- sales and distribution to HFS stores NL: Natudis, Kroon sale • Focus on full range (ambient and Belgium: Hagor fresh) of products • Focus on high share of products per store 16
    17. 17. Wessanen’s supply chain 17
    18. 18. Driving our brands in 2 channels Health Food Stores GroceryProfile Small – independent - large exclusively Professional chains - organic core assortmentProfile organic assortmentDevelopment Concentration - modern formats Dedicated shelf results in strong growthDevelopmenOpportunity Attract & activate mainstream consumers - Build credibility and profile through strongOpportunity innovative concepts organic ranges Our Focus i) Building powerful brands - large ranges - Focus on fewer, bigger brandsWessanen moving from push to pull marketing Aggressive growth - powerful in-store marketingFocus ii) Wholesale (NL, BEL, FR) iii) Retail formulas (NL) All countries 18
    19. 19. Tangible steps taken 2010-121. A clear vision and mission in place  Vision is ‘to make our organic brands most desired in Europe’2. Strategy and strategic direction clear  Strategic priorities 2012-14 in place  ‘OGSM’ framework to align plans and objectives3. Transition from a financial holding to a strategic orchestrator 19
    20. 20. Strategic objectives 20
    21. 21. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Grow core brands • Grow core categories • Build strongholds in new markets • Country specific growth strategies • Launch fewer, bigger, better innovations • Execute acquisitions shortlistProfitability • Central sourcing savings • Pricing strategies towards customersimprovement • Improve operational excellence with SAP • Filling own factoriesEnablers • Improve talent performance management / building connected leadership • Simplify how we are conducting business • Activate Organic Expertise Centre (OEC), integrate Quality 21
    22. 22. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Brand activation e.g. • Bjorg during ‘Atelier bio’ weeks in France • Gayelord Hauser 22 Atelier bio nut Leclerc Albi
    23. 23.  Rebuilding 23
    24. 24. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Brand activation e.g. • Ekoland in Amsterdam area Atelier bio nut Leclerc Albi 24
    25. 25. Grocery examples of activation Kallo soy launch activity Dairy alternatives key category Kallo core brand, phased out So GoodYearly award magazine „Lebensmittel Praxis“Whole Earth Inka Taler (4 varieties)Criteria based on:Quality/Design/Distribution/Communication/Sustainability Bjorg commercial Based on success of Q2 airing, repeated in September Results: increased awareness, higher sales 25
    26. 26. HFS examples of activationAllos cookiesNew range of cookies launchedAvailable in German HFS stores New GooodyFooods store Opened early October in Zaandam 4th store, new ones in the pipeline 26
    27. 27. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Category innovations e.g. • Bjorg tea • Zonnatura Kikker and nut bars • Whole Earth chocolate spreads • Ekoland fruit juices 27
    28. 28. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Acquisitions (Clipper) • Assortment line-up and brand activation • Preparing for European roll-out in early 2013 Clipper ‘Congo’ TV ad aired in spring 28
    29. 29. 29
    30. 30. Clipper UK based tea and coffee company  Founded in 1984 100% branded business  Tea, coffee, hot chocolate  Grocery, HFS, food service, export Leading position in UK organic & fair trade tea  Everyday, green, white, infusion, specialties Revenue £16mln, ca 90 employees Manufacturing plant (incl. blending) in Dorset (UK) Tea is one of our core categories Clear potential in UK as well as other European markets 30
    31. 31. Strategic objectives 2012-14Strategic focus ActivitiesProfitability • Gross margin improvement - in particular in Grocery - both in 2011 and 2012improvement • Deployment of SAP in France, the Netherlands, UK • Germany and Clipper planned for • Filling the factories in Germany with product categories such as breakfast cereals and pasta sauces 31
    32. 32. Strategic objectives 2012-14Strategic focus ActivitiesEnablers • Leadership programme in first half 2012 for top-65 of Wessanen • Practical toolbox to accelerate the execution of the strategy • 4 CBT teams to boost innovations • Organic Expertise Centre up-and-running 32
    33. 33. Business principles / sustainability 33
    34. 34. Wessanen business principles Compliance with laws: being a responsible partner in society, acting with integrity towards all stakeholders and others who can be affected by our activities Environment: in line with commitment to sustainable development, we will do all that is reasonable and practicable to minimise adverse effects on the environment Product safety: we aim at all times to supply safe products and services Free market competition: we support free market competition as basis of conducting business; we observe applicable competition laws and regulations Child, bonded and forced labour: under no circumstances we are making use of forced or bonded labour; we do not employ children in violation of relevant conventions of ILO Human rights: we support and respect human rights and strive to ensure that our activities do not make it an accessory to infringements of human rightsWe expect suppliers and business partners to comply with the above principles 34
    35. 35. Commitment to minimise environmental impact Committed to minimising impact on environment by measuring and monitoring the effects of our operations All our organic products are free of GMO We are working on reducing our CO2 footprint and usage of water Additionally, organic products do not use pesticides, therefore contributing to a decrease ISO 14001 is an internationally recognised standard for embedding processes to analyse and reduce our impact on the environment 35
    36. 36. Palm oil - member RSPO Palm oil is important, versatile raw material for food  Only be cultivated in tropical areas of Asia, Africa and South America  Concerns that demand causing expansion of plantations into eco-sensitive areas Since March 2011 Member of Roundtable on Sustainable Palm Oil (RSPO)  Global multi-stakeholder initiative  Encouraging sustainable production/use palm oil  Wessanen commits to organisation’s objectives In 2011, we developed policy to govern palm oil sourcing and guidelines for implementation in partnership with our suppliers Committed to switching palm oil to RSPO certified sustainable palm oil during 2012-13  RSPO certified segregated palm oil for organic  GREEN PALM certificates for conventional 36
    37. 37. Organic Expertise Centre (OEC) Establishment internal expertise center - named OEC - in 2010  To stimulate exchange of knowledge / experience that is widely available within Wessanen  To educate and inspire our internal / external stakeholders in organic values Specialists join forces and work on pan-European issues To legitimise our position in organic world by championing the organic case Focal areas will be:  Training (incl. training package for newcomers)  Knowledge building by teaming up with external researchers and experts  Lobbying to promote organic food  Communication for more general awareness / knowledge of organic food 37
    38. 38. Employee engagement  WEacademy  2012 Leadership development programme  Focus on strategy execution, connected leadership  Employee turnover is a key focus area  Competency model deployed  Defines behaviour expectations for all employees  Translates ambitions/values into behaviour conventions and skills100% 120 875% 6 8050% 4 4025% 2 0% 0 0 Executives Managers Associates 2009 2010 2011 2009 2010 2011 38 Men Women Injury severity rate Injury frequency rate
    39. 39. Social media 39
    40. 40. Companies organise for social in 5 ways 29% 11% 41% 18% 1% One No one A cross- Companies Everyone in department department functional team within company uses manages all manages or sits in companies social media social activities coordinates centralised safely and position consistently 40
    41. 41. Zonnatura 360°campagne Television Outdoor - busshelter  Sponsoring GTST  Nationwide coverage Radio campaign  Week 43-44  Week 43-45  Week 43-44 In-store  Retail promotions  Week 43-47 Tastings Site In-store tastings tea / bars  Consumer activation In week 44 Social media Free sampling  From week 43 Margriet Winterfair  Week 46-47 41
    42. 42. KalloKey messages Kallo recipes written by the OliversFacebook page linkFocus onhomecooking andbenefits of using thebest stock cube -Kallo Greatstock.co.uk is the Online campaign hub Discover the delicious Kallo range 42
    43. 43. Keys to Building Your Social Business Monitoring Intelligence Action Engagement43 43
    44. 44. 44
    45. 45. 45
    46. 46. 46
    47. 47. 47
    48. 48. Closing remarks 48
    49. 49. For additional information Carl.hoyer@wessanen.com www.wessanen.com - Annual Report - Background information - Presentations - Sustainability fact sheet @royalwessanen Slideshare / wessanen 49
    50. 50. Royal Wessanen nv
    51. 51. Appendix - Financials 51
    52. 52. Bridge - segment revenue growthIn € mln150 €8.3 €(6.7) €136.6 €(0.7) €1.0 €138.5140 ToL UK Kalisterra130120 Q3 11 Grocery HFS Frozen Foods Intersegment Q3 12 52
    53. 53. Bridge - revenue growthIn € mln150 (1.9)% 1.7% 0.8% 1.0% 1.5%140130120 Q3 11 Volume Price/mix Currency Acq&div. Q3 12 €136.6 €(2.6) €2.3 €1.0 €1.2 €138.5 53
    54. 54. Bridge - EBITE development y-on-yIn € mln6 €1.0 €1.9 €0.2 €0.2 - €3.3420 Q3 11 Grocery HFS Frozen Foods Corporate Q3 12 54
    55. 55. Working capital 80 4 quarter average working capital  Cont. operations  ABC 60 40 20 0 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 40 q-on-q movement working capital 20 0-20-40 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 55
    56. 56. Net debt and leverage ratioIn € mln150 Net debt €57 mln 75 0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 4 Leverage ratio 2.0x 2 0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 56
    57. 57. A very sound financial position In € mln Sept 12 Dec 11 In € mln Sept 12 Dec11Assets LiabilitiesProperty, plant and equipment 55.1 86.4 Total equity 164.9 166.1Intangible assets 106.8 90.6 Interest-bearing loans 64.7 37.4Investment associates/other 0.5 1.0 Employee benefits 23.7 24.0Deferred tax assets 6.8 8.8 Provisions / Deferred tax liabilities 6.4 3.9Non-current assets 169.2 186.8 Non-current liabilities 94.8 65.3Inventories 60.7 67.5 Bank overdrafts / current debt 5.7 3.0Income tax receivables 0.7 2.2 Provisions 2.1 3.3Trade receivables 77.4 78.9 Income tax payables 2.2 0.5Other receivables / prepayments 14.8 24.4 Trade payables 64.6 70.5Cash (equivalents) 13.9 8.2 Non-trade payables&accrued expenses 50.3 59.3Assets classified as held for sale 58.8 - Liabilities classified as held for sale 10.9 -Current assets 226.3 181.2 Current liabilities 135.8 136.6TOTAL ASSETS 395.5 368.0 TOTAL EQUITY & LIABILITIES 395.5 368.0 57
    58. 58. Royal Wessanen nv

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