Your SlideShare is downloading. ×
  • Like
Wessanen ppt at ing benelux conf sept2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Wessanen ppt at ing benelux conf sept2013

  • 226 views
Published

Wessanen presentation we are to give to investors at ING Benelux Conference on Thursday 12 September 2013. Highlighting strategy, markets we operate in, Q2 and year-to-date figures and our …

Wessanen presentation we are to give to investors at ING Benelux Conference on Thursday 12 September 2013. Highlighting strategy, markets we operate in, Q2 and year-to-date figures and our sustainability performance

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
226
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen
  • Royal Wessanen

Transcript

  • 1. Royal Wessanen A leading European player in healthy & sustainable food www.wessanen.co @RoyalWessanen ING Benelux Conference London Thursday 12 September 2013 London, ING Offices, 60 London Wall
  • 2. In a nutshell  Turnover €711mln (2012) | 2,064 employees (on average) A 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  ±20% own production, rest sourced from 3rd parties based on our recipes/packaging  Factories in UK (tea), Germany (vegetable spreads) (cereals/bars/spreads/honey) and Italy (soy/non-dairy drinks) Organic food market  Attractive growing part of food market | €22bn market  Increasing - although still low - per capita consumption  No colouring/flavouring | GMO-free | no artificial fertilisers | animal welfare  Unique certification system | grown and processed according to EU regulation 2
  • 3. 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 (100 years ago !)  1959 - Listed on Euronext Amsterdam  2009 - Strategic reorientation → focus on organic food in Europe  2015 - Marking our 250th anniversary 3
  • 4. 4 Portfolio approach → focus on organic food 44 2009 2012 €711m Focus and investment into core brands & categories in organic in Europe Grocery HFS IZICO ABC Others €1585m 1 Branded part of our Grocery and HFS business
  • 5. 5 Nutrition and food issues Transparency Sustainability Weight and obesity ORGANIC
  • 6. To build the most desired brands in Europe in our focus area 6 Healthy nutrition Ethical sustainable Authentic taste Functional food
  • 7. Strategic objectives 7 Sales growthSales growth • Grow core brands • Grow core categories • Build strongholds in new markets • Country specific growth strategies • Launch fewer, bigger, better innovations • Execute acquisitions shortlist Profitability improvement Profitability improvement • Central sourcing savings • Pricing strategies towards customers • Improve operational excellence with SAP • Filling own factories EnablersEnablers • Improve talent performance management / building connected leadership • Simplify how we are conducting business • Activate Organic Expertise Centre (OEC), integrate Quality Wessanen 2015 A more integrated consumer and customer driven organisation, being focussed, less complex, more efficient and integrated
  • 8. ‘Wessanen 2015’ 1. Create more focus on our activities • Reduction of approx. 300 FTE • One-off costs €(21) mln cash • Savings €15 mln p.a. from beginning of 2014 onwards 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) 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 • Further increased focus on core brands and core categories  Expansion number of CBTs (category brand teams)  Split Benelux operations in branded and distribution organisation  Split French HFS operations in branded and distribution organisation
  • 9. Q2 2013 performance  We have to cope with uncertain economic times, low consumer confidence and increasing unemployment  Consumer appreciation for healthy and sustainable food is continuously growing  Consumers are gradually incorporating more of a sustainable agenda when making food purchases  Consumers show growing engagement with healthier food via alternative food solutions such as organic, free from, ethical and local provinence  'Wessanen 2015' is progressing well  Wessanen becoming a more profitable company, being more focused on its core activities, more agile and more efficient  Savings of €15 mln expected from 2014 onwards  ABC’s first half year performance was very disappointing 9
  • 10. Looking forward Macro economy Europe has to deal with deteriorated consumer confidence and increased unemployment Organic and natural food markets continue to trend positively ‘Wessanen 2015’ Implementation running smoothly All progress, including FTE reductions and savings, closely monitored H1 results We have made significant progress in our core operations and IZICO  Improvement driven by own actions at our various businesses Unfortunately, ABC’s H1 performance was very disappointing. We therefore have initiated immediate short term corrective actions to return ABC to profitability in 2014. Full year 2013 2013 will be another challenging year “Store is open while we are renovating and innovating” 10
  • 11. Segment overview 11
  • 12. Grocery  France growing, driven by Dr. Schär, Krisprolls, Gayelord Hauser  For the latter, we ran a sizeable promotional campaign  Bjorg slightly up, impacted by of a temporarily category delisting at a customer  New large TV campaign to be aired in Q3  Acquisition Alter Eco closed at end of May  UK branded business posted a strong performance  Market share gains in its major categories  Tea, dairy alternatives and stocks & gravies  Kallo is to be rebranded into Kallø from September  Supported by social media campaign, story-telling books and sampling events  In the Netherlands, Zonnatura and Dr Schär both showed a good performance  Zonnatura’s new TV commercial "what happened to our food?" was well received In € mln H1-13 H1-12 Revenue 144.0 138.1 Autonomous growth 1.3% Normalised EBIT 15.6 10.0 As % of sales 10.8% 7.2% Exceptional items (1.2) (0.9) EBIT 14.4 9.1 12
  • 13. Health Food Stores (HFS)  Wholesale reporting lower sales  Natudis has been growing  France lower volumes • Moving part fruit & vegetables to Biodistrifrais • Bonneterre ceased chilled and larger part fruit & vegetables  Refocus Bonneterre company going well  Cutting the tail programme implemented  Bonneterre and Evernat brands making inroads at specialty chains and buying groups  Our brands showed a good performance  Allos, Tartex and Bonneterre growing  In total, brands do represent 2/3 of total HFS sales  Autonomous growth and operating result strongly up  Volumes and gross margins up in all 3 markets  Lower operating costs (first benefits ‘Wessanen 2015’)  Marketing spending up due to large campaign at Bonneterre In € mln H1-13 H1-12 Revenue 106.9 105.9 Autonomous growth 0.7% Normalised EBIT 2.8 (0.5) As % of sales 2.6% (0.5)% Exceptional items (0.7) - EBIT 2.1 (0.5) 13
  • 14. Export - double-digit growth in H1  Reported as part of Grocery and HFS  Small dedicated group organised by brand and geography  Multiple export markets  Most important ones are Nordics, Austria, Italy, Japan, Spain, Switzerland  Also includes Russia, Middle East, Far East and Australia  Export plans based on clear brand and market choices  First half year growth 11%, driven by Clipper, Allos and Whole Earth 14
  • 15. CBT’s starting to deliver tangible results  Fully aligned product and packaging launch in 3 countries, produced in own factory  €1 mln revenue (full year basis)  Additional fixed cost coverage Allos factory 15 To come To come  Innovative concept in both channels in France, produced at own factory, further roll-out in progress  €2 mln revenue (full year basis)  Additional fixed cost coverage Bioslym factory CBT Cereals CBT Dairy alternatives  Significant renovation core product across countries to remove palm oil (consumer issues re. sustainability/health)  +12% growth on renovated products in France CBT Sweet in between
  • 16. Clipper roll-out progressing well  France in Q1, Netherlands Q3, Germany in Q4  Initial sales in France above budget  Year 1 contribution >€1 mln in revenue
  • 17. France Alter Eco – leading in French fairtrade  Sale and purchase agreement signed  Closing expected early June, depending on satisfaction certain closing conditions  France Alter Eco  Paris-based  Revenue 2012 of €16.5 mln  Organic and fair trade products such as chocolate, coffee, tea and juices  Developed strong partnerships with farmers’ cooperatives  Around 100 products • Marketed in grocery, HFS and out-of-home channels  Multiple paid 0.2-0.3x revenue 17
  • 18. Strong growth driven by • Brand support (TV/360°) • In-store & consumer activation • Innovation 18
  • 19. • First TV commercials since 2007 • 1st in April/May, 2nd September • A challenger to all conventional food brands WHAT HAPPENED TO OUR FOOD ?
  • 20. 20 • 11% growth in the UK • Integration in UK on plan • Roll-out Europe - France: Q1 - Netherlands: Q2 - Germany: Q3
  • 21. 21 • New positioning and Communication • New range from March 2013
  • 22. IZICO - integrated frozen foods company  Good progress in becoming one company  to strengthen its position on Benelux market and in export  to further improve profitability  to better and more effectively cope with the challenging environment  All ‘Wessanen 2015’ actions have been completed  Closure Deurne plant  New structure and roles at various departments implemented  Offices combined in Breda  Market: retail growing, out-of-home impacted by sluggish demand  Bicky continued to grow, while Beckers lost some market share in retail  Plans to revitalise Beckers underway  In H2 2013, half of €5 mln ‘Wessanen 2015’ savings to materialse In € mln H1-13 H1-12 Revenue 53.2 56.9 Autonomous growth (6.4%) Normalised EBIT 1.5 0.7 As % of sales 2.8% 1.2% Exceptional items (0.2) - EBIT 1.3 0.7 22
  • 23. ABC - Little Hug’s growth offset by Daily’s  Little Hug continues to perform well  Growing revenue and market share  Continue to invest in brand activation  Introduced new flavours Berry Blend and Apple Orchard  Daily’s maintained its clear leadership share in pouch segment  Year-to-date, frozen pouches lost >20% (volume and value)  No meaningful improvement foreseen for remainder of 2013  Daily’s underperformed broader RTD market • Numerous initiatives: 6 new flavours, new campaign and grown distribution coverage.  Expected FY13 revenue breakdown  Little Hug 45-50%, single serve fruit drinks >10%  Daily’s 40-45% (2/3 frozen pouches, 1/3 non-alcoholic mixers)  FY2013 operational loss (EBITE) expected of US$5-10 million  FY2014, we expect ABC to be profitable again In US$ mln H1-13 H1-12 Revenue 79.2 97.6 Autonomous growth (18.8%) Normalised EBIT (1.4) 6.5 As % of sales (1.8)% 6.7% Exceptional items (0.5) - EBIT (1.9) 6.5 23
  • 24. Retailer Support 64th of July promotion
  • 25. Financials 25
  • 26. Q2/H1 P&L in more detail In € mln Q2 2013 Q2 2012 H1 2013 H1 2012 Revenue 187.3 201.0 359.8 371.6 ↓ Autonomous growth (6.8)% (4.1)% Gross contribution - - 137.9 142.4 ↓ As % of revenue - - 38.3% 38.3% → Normalised EBIT 4.8 6.2 14.1 9.1 ↑ As % of revenue 2.6% 3.1% 3.9% 2.4% ↑ Exceptional costs (1.3) (0.3) (2.4) (0.3) ↓ EBIT 3.5 5.9 11.7 8.8 ↑ Net financing costs (0.6) (0.7) (1.0) (1.3) ↑ Income tax expenses (4.1) (2.1) (6.8) (2.9) ↓ Net result attributable to equity holders (1.2) 3.2 3.9 4.9 ↓
  • 27. Organic growth in perspective 27 In € mln Q2 13 H2 13 H1 14 Grocery (2) (5) (2-3) • Germany - different go-to-market model (0.5) (1) - • Italy - withdrawal Bjorg and Efficance brands (0.3) (0.6) (0.3) • UK - ending private label contracts (1) (2) (1) • NL - terminating Biorganic (0.3) (1.5) (1) HFS (1) (6) (3-4) • France - cutting the tail / ending frozen, F&V (0.5) (4) (3) • NL - cutting the tail (0.5) (1) (1) • Germany - SAP implementation 1 July 0.7 (0.7) n.m. IZICO (3) (7) (4) • Closing Deurne plant / cutting the tail
  • 28. H1 gross profit / normalised EBIT  Gross profit in line with last year  Grocery ↑ • Underlying improvement  HFS ↑ • Growth brands and deliberate downsizing part of wholesale operations  IZICO ↑ • Ending low-margin Halal and breadcrumb activities  ABC ↓ • Lower pouches sales and provisions for customer returns / obsolete inventory  Marketing spending  Grocery ↓ • France ↓ - phasing towards Q1 and Q3 (new TV campaign to be launched) • UK ↓ - due to large media spending on both Clipper and Kallo last year • Germany ↓ - revised go-to-market approach  HFS ↑ • Due to a large billboard/poster campaign in France  At ABC and IZICO in line with last year  Warehousing / logistics / general & administrative  Lower general and administrative costs  Lower warehousing and logistical costs 28
  • 29. ‘Wessanen 2015’ - cash costs 29 In € mln Q4 2012 Q1 2013 Q2 2013 H2 2013 Grocery (3.0) (0.2) (0.8) (0.5-1) HFS (6.5) (0.5) (0.2) (0.5-1) IZICO (6.2) (0.2) - (0.5-1) Non-allocated (0.6) - - - Costs ‘Wessanen 2015’ (16.3) (0.9) (1.0) (2-3)
  • 30. First half 2013 cash flow 30 20.8 (3.6) (3.7) (8.4) (15.7) (3.9) (3.6) (18.3)
  • 31. Successful renewal credit facility 0 25 50 75 100 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 0 1 2 3 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 31  Three-year secured €100 million revolving credit facility  Current facility scheduled to mature in Feb. 2014  Uncommitted options to  Extend facility for in total two years  Increase facility up to maximum aggregate amount of €25 mln (‘accordion facility’)  Pricing grid narrowed to 110-205 bps over Euribor  Based on leverage ratio (Net debt/EBITDAE) (max. remains at 3.0x)  Increase in debt (€74.6 mln vs. €62.7mln at end of Q1) due to:  Cash out provision expenses €8.4 mln, Alter Eco €5.0 mln and dividend payments €3.8 mln Leverage ratio: 2.0XNet debt: €74.6
  • 32. A very sound financial position In € mln Jun 13 Dec 12 Assets Property, plant and equipment 74.8 77.4 Intangible assets 66.9 66.8 Investment associates/other 1.2 1.1 Deferred tax assets 9.0 9.2 Non-current assets 151.9 154.5 Inventories 74.5 72.3 Income tax receivables 0.2 - Trade receivables 111.0 85.7 Other receivables / prepayments 17.7 15.7 Cash (equivalents) 14.7 9.7 Current assets 218.1 183.4 TOTAL ASSETS 370.0 337.9 32 In € mln Jun 13 Dec 12 ¹ Equity and liabilities Total equity 112.5 110.8 Interest-bearing loans 0.3 60.7 Employee benefits 13.0 15.1 Provisions / Deferred tax liabilities 6.3 5.2 Non-current liabilities 19.6 81.0 Bank overdrafts / current debt 13.9 1.4 Interest-bearing loans/borrowings 75.1 2.5 Provisions 10.7 16.8 Income tax payables 2.9 0.7 Trade payables 72.9 68.3 Non-trade payables/accrued expenses 62.4 56.4 Current liabilities 237.9 146.1 TOTAL EQUITY & LIABILITIES 370.0 337.9 ¹ Restated for effect of IAS 19 (revised 2011)
  • 33. Financials Q2 - guidance 2013 Financials Q2  Net financing costs €(0.6) mln Q2 12: €(0.7) mln ¹  Income tax expenses €(4.1) mln Q2 12: €(2.1) mln  Capex €(2.3) mln Q2 12: €(1.7) mln Financials H1  Net financing costs €(1.0) mln FY 12: €(1.3) mln ¹  Income tax expenses €(6.8) mln FY 12: €(2.9) mln  Capex €(3.6) mln FY 12: €(3.6) mln Guidance 2013  Net financing costs €(2) mln  Effective tax rate 53% ²  Capex €(8-10) mln  Depreciation and amortisation €(13-14) mln  Non-allocated expenses (incl. corporate) €(11) mln 33¹ Restated for effects of IAS 19 (revised 2011) ² Excludes recognition of provision for uncertain tax positions in Q2 2013 of €1.1 million
  • 34. Sustainability 34
  • 35. 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 rights 35 We expect suppliers and business partners to comply with the above principles
  • 36. 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 36 Additional information at www.wessanen.com on sustainability, such as GRI G3 table | Performance fact sheet
  • 37. Wessanen’s supply chain 37
  • 38. 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 38 “Sustainability is an essential and natural part of our daily work.”
  • 39. 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  RSPO member (Roundtable on Sustainable Palm Oil)  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 39
  • 40. Organic Expertise Centre (OEC)  Establishment internal expertise center 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  To implement and roll-out sustainability strategy  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  Hosting annual Organic day for all employees (5 Sept 2013) 40
  • 41. 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 skills 0 40 80 120 2009 2010 2011 2012 Injury severity rate 0% 25% 50% 75% 100% Executives Managers Associates Men Women 41 0 2 4 6 8 2009 2010 2011 2012 Injury frequency rate
  • 42. Royal Wessanen nv