1. Royal Wessanen nv
Annual General Meeting of Shareholders
Amsterdam, 16 April 2013
2012: Organic is our choice
2. Portfolio approach → focus on organic food
Focus and investment into core brands &
categories in organic in Europe
2009 2012
Grocery
HFS
€1585m IZICO €711m
ABC
Others
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3. Focus on Organic makes sense !
5-1-
5-10% consistent growth per annum Spend per capita could more than double
in core countries
3
4. Nutrition and food issues Transparency
ORGANIC
Sustainability Weight and obesity
4
5. Our vision is to build the most desired brands
in Europe in our focus area
Healthy Ethical
nutrition sustainable
Functional Authentic
food taste
5
6. Strategic objectives
A more integrated
consumer and customer driven organisation,
being focussed, less complex, more efficient and integrated
Sales growth
Sales growth Profitabilty
Profitabilty Enablers
Enablers
improvement
improvement
• Grow core brands • Central sourcing savings • Improve talent performance
• Grow core categories • Pricing strategies towards management / building
• Build strongholds in new markets customers connected leadership
• Country specific growth strategies • Improve operational excellence • Simplify how we are conducting
• Launch fewer, bigger, better with SAP business
innovations • Filling own factories • Activate Organic Expertise Centre
• Execute acquisitions shortlist (OEC), integrate Quality
Wessanen 2015 6
7. Transformation programme ‘Wessanen 2015’
1. Create more focus on our activities
• Further increased focus on core brands and core categories
• Expansion number of CBTs (category brand teams)
• Split in branded and distribution organisation
− Benelux operations
− French HFS operations
2. Reduce complexity and simplify processes
• Cutting the tail / reducing number of SKUs at
− Dutch brands; French HFS brands; Export
• Centralising quality department
• In the Netherlands, focus on one franchise formula (Natuurwinkel), to end GooodyFooods formula
• Supply chain to manage our plants as of 2013 and to streamline processes
3. Addressing low-yielding and non-performing activities
• Strongly reducing German grocery presence, changing go-to-market approach
• Focus in Italian grocery on non-dairy (soy)
• Reduction of approx. 300 FTE
• Expected one-off costs €(21) mln cash and €(7.0) mln non-cash impairment Deurne plant
• Expected savings €15 mln p.a. from 2014 onwards
9. Key figures 2012
In € mln 2012 2011
Revenue 710.8 706.0
Autonomous growth (in %) 0.7%
Gross contribution 270.5 263.6
In % of revenue 38.1% 37.3%
Operating result (EBIT) (45.8) (19.0)
Net result (Wessanen equity holders) (53.2) (17.1)
Shareholders’ equity 101.6 163.2
Net result per share (in €) (0.70) (0.23)
Dividend per share (in €) 0.05 0.08
Shareholders’ equity per share (in €) 1.34 2.16
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12. Financial overview 2012
In € mln
250 5
Net debt 4
200
150 3
1.7x
100 2
€54.9
50 1
0 0
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Target financial policy: to maintain net debt structurally below 2.5x EBITDA
12
13. Management letter
• Framework of Internal Control (FIC):
– The roll-out and implementation of FIC has matured further
– Timely completion and quality of self assessments can be further improved
• Actions taken:
• More dynamic testing throughout the year by IAD
• Improve user friendliness of automated tool (GMRT)
• IT environment and automated controls:
– A number of Segregation Of Duty conflicts exist in the IT environment, partly due to size of the
operating companies
– Further remediation during 2013 are planned when economic viable, otherwise continued reliance
on compensating controls
• Internal controls at smaller Operating Units
– Adequate financial controls at smaller units remains attention point – not material at Wessanen
level
– Deloitte scope increased on request of CFO during 2012 and FIC reviews by IAD planned for 2013
14. Grocery
Strong autonomous sales growth
Breakfast
Cereals
+4.6%
Six out of Dairy
Alternative
eight
core
categories Tea
2011 2012 growing
Bread
Biscuit
Replacer
Focus on brand growth Sweet in
between
Veggie
Meals&
Spreads
15. Strong growth driven by
• Brand support (TV/360°)
• In-store & consumer activation
• Innovation
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16. • First TV commercials since 2007
• A challenger to all conventional food brands
17. • 11% growth in the UK
• Integration in UK on plan
• Roll-out Europe
- France: Q1
- Netherlands: Q2
- Germany: Q3
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18. Health Food Stores(HFS)
• HFS showing a disappointing performance in all three businesses
– Various issues addresses as part of ‘Wessanen 2015’
• France impacted by changing health food stores landscape
– Rise of chains at expense independent stores
– Lower sales, especially in wholesale and at fresh
• Benelux impacted by lost customers and weak performance at Fresh
– Existing Natuurwinkel and independent stores growing
• Germany impacted by weak brand performance Allos and declining revenues at
Reformhaus channel (Tartex)
18
20. IZICO
• Full ownership acquired of Favory Convenience Food Group
– Paved the way for creation one integrated company
• New management team in place
• New name IZICO
– easy (IZI), go (CO), ice (IZ) and company (CO)
• Milestone plan being executed for full alignment and process integration Beckers Benelux
and Favory
– Combining both headquarters in Breda
– Integration marketing, sales, operations, finance and HR
– Favory Deurne plant closed as of the end of March
21. American Beverage Corporation (ABC)
Little Hug
•Extending its flavour range
•Introducing drinks with 75% less sugar
Daily’s defending its strong position via innovation,
communication and brand activation
22. Closing remarks
• 2012 was a turbulent year for the global economy and the Eurozone in particular
– Organic food markets continue to trend positively nevertheless
• We have made clear progress in numerous areas, however not all initiatives have resulted in
the desired outcome
• We have initiated a comprehensive transformation programme to become more profitable
– More consumer & customer-led European integrated company
– More focused and agile, less complex and more efficient
• Wessanen has a great future ahead of it with authentic brand and strong market positions
• 2013 will be another challenging year: “Store is open while we are renovating and innovating”
• The seamless effort of our people to contribute to healthier and happier life for consumers
makes Wessanen a unique company
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