Royal Wessanen nv             Q2 2011Amsterdam, 27 July 2011
Royal Wessanen - who we are   A long and rich history as a food company   Incorporated in 1765; Royal since 1913; listed...
Piet Hein Merckens (CEO)Review Q2 performance                           3
Q2 2011 highlights   Wessanen fitter and more focused   Q2 results reconfirmation of continuous progress we are making ...
Q2 2011 highlights   Strategy is clear, we are more focused, and in better shape,    although we have to improve in multi...
Wessanen Europe Grocery   Continued focus on core brands, making further progress                 Revenue (in € mln)   R...
Brand activation - Bjorg                           7
Wessanen Europe HFS   Revenue down (5.9)%                                                       Revenue (in € mln)      ...
Innovations - Allos and Tartex                                 9
Activation - Little Green Bag   Goal Little Green Bag   Connect retailers to Natudis and its brands   Generate addition...
Frozen Foods   Revenue (2.8)%                                                  Revenue (in € mln)       Autonomous growt...
Beckers ‘Family man of the year’Consumer action - period May-September Media      Media partners      Free publicity   ...
American Beverage Corporation   Q2 showing strong performance; expected continuation                 Revenue (in € mln)  ...
2011 innovations year-to-dateLittle Hug                           Daily’s Fruit Mixers   Daily’s Ready-to-DrinkNew packag...
Ronald Merckx (CFO) Started at Wessanen as of 1 JuneFinancials                                     15
Q2/H1 2011 key figuresIn € million                                  Q2 2011          Q2 2010      H1 2011   H1 2010Revenue...
Bridge - salesIn € mln200198                                                                        €195.7196            €...
EBIT - from normalised to reported                             Q2 2011       Q2 2010Normalised EBIT                11.8   ...
Bridge - normalised EBITIn € mln 13                                                                    €11.8 12           ...
Net debt and leverage ratio In € mln 250                                                                         Net debt ...
Cash flow Q2 2011 In € mln               8.5     (10.9)                                Derivatives                        ...
Piet Hein Merckens (CEO)Closing remarks                           22
Closing remarks   Strategy is clear, we are more focused, and in better shape,    although we have to improve in multiple...
Q&A      24
Appendices
Revenue H1 2011 €374.5 mln     ABC                                               WE Grocery     Revenue           €56.9 ml...
Q2 performance                                 H1 performance              Revenue (in € mln)                           Re...
Financial guidance 2011   Net financing costs around €(4) mln      2010: €(8.3) mln; 2009: €(19.9) mln   Effective tax ...
European brand-platform-category map                                  France        Netherlands      Germany              ...
Strategic objectives 2011-2013 Top-line growth     Market share gains in core categories and brands     Add-on acquisit...
Wessanen’s building blocksSix important assets on which Wessanen’s success is built, reasonswhy our brands will be your na...
Royal Wessanen nv
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Wessanen Q2 2011 analyst&investors presentation

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Wessanen Q2 2011 analyst&investors presentation

  1. 1. Royal Wessanen nv Q2 2011Amsterdam, 27 July 2011
  2. 2. Royal Wessanen - who we are A long and rich history as a food company Incorporated in 1765; Royal since 1913; listed on Euronext since 1959 Headquartered in Amsterdam  Operations in the Benelux, France, Germany, UK, Italy, USA  Over 2,200 employees Revenue split 2010 €712mln A leading player in the major organic food markets in Europe  Vision: ‘To make our brands most desired in Europe’ 13% 32% Frozen Foods: leading frozen snacks producer/marketer in Benelux 16% ABC: leading producer fruit drinks/cocktail mixers in USA 39% WE Grocery WE HFS Frozen Foods ABC 2
  3. 3. Piet Hein Merckens (CEO)Review Q2 performance 3
  4. 4. Q2 2011 highlights Wessanen fitter and more focused Q2 results reconfirmation of continuous progress we are making Revenue +1.1%, autonomous growth +2.3%  Volume 1.0%, Price/mix 1.3% Normalised EBIT €11.8 mln, up 8.3% Successful renegotiation and extension of €100 million credit facility at more favourable terms Divestment Tree of Life UK and Kalisterra (per 1 October) 4
  5. 5. Q2 2011 highlights Strategy is clear, we are more focused, and in better shape, although we have to improve in multiple areas Despite subdues economic growth, awareness and appreciation for organic food continue to grow Grocery continues to grow  Focus on core brands, innovations, brand activation, more consistent execution HFS wholesale challenging quarter, while branded performed satisfactorily  Numerous initiatives undertaken to address issues  We expect result to improve gradually Increasingly implementing one consistent way of working  Areas such as brand activation, innovation, central sourcing, operational excellence and ICT ABC performed strongly in Q2, expected to continue based on current momentum and plans in place 5
  6. 6. Wessanen Europe Grocery Continued focus on core brands, making further progress Revenue (in € mln) Revenue up 7.2% 5.1%  Autonomous growth 5.1%  Volume 4.4%; Price/mix 0.7% 65.9 France: Bjorg continues to grow and gain market share 61.1 First nationwide TV commercial aired in May-June Benelux sales up, driven by Biorganic, Merza and Dr Schär. Zonnatura to relauch its tea range in August ♦ Autonomous third party revenue growth In Germany, Whole Earth and Culinessa further gaining EBIT (in € mln) distribution In UK, revenue about stable, impacted by focus on ‘cutting the tail’ 5.5 6.8 6.5 Italian sales continue to grow 5.1 The soy plant is performing well, expanded with a water treatment facility which just was started up Q2 10 Q2 11 ♦ Reported, ♦ Normalised 6
  7. 7. Brand activation - Bjorg 7
  8. 8. Wessanen Europe HFS Revenue down (5.9)% Revenue (in € mln)  Autonomous growth (6.8)%  Volume (6.6)%; Price/mix (0.2)% (6.8)% Increased focus on branded and high value added wholesale due to divesting Tree of life UK and Kalisterra 73.2 68.9 Benelux sales are lower due to fewer stores; Kroon (our fresh supplier) gaining new customers; At existing own-format stores, revenue trending up; New Natuurwinkels Huizen, Zoetermeer and Maastricht ♦ Autonomous third party revenue growth France: sales at Bonneterre stable with Bonneterre EBIT (in € mln) brand up. Dietetic market (Kalisterra) facing strong competition 2.6 2.0 Germany stable. HFS stores (‘Naturkost’) up, more 1.9 specialised stores down (‘Reformhauses’) -2.7 Plants in Freiburg and Dreber performed well Q2 10 Q2 11 ♦ Reported, ♦ Normalised 8
  9. 9. Innovations - Allos and Tartex 9
  10. 10. Activation - Little Green Bag Goal Little Green Bag Connect retailers to Natudis and its brands Generate additional traffic to shops Pull new consumers by low prices organic offer Generate additional promotional revenue (high traffic to stores) What is it? A red paper bag which can be filled in HFS store 5 organic products for only €5 (normal price about €10) ‘Green’ because of 5 ‘green’ products Tied to a theme - now ‘Picnic’ Additional promotional material was included (f.e. instore material, advertising campaign, PR) A large advertising campaign in local newspapers 10
  11. 11. Frozen Foods Revenue (2.8)% Revenue (in € mln)  Autonomous growth (6.0)%  Volume (7.5)%; Price/mix 1.5% (6.0)% Branded volumes (Beckers, Bicky) up  Higher sales in Belgian and Dutch retail 29.7 30.7 Private label volumes remaining weak Marketing spending somewhat lower  Spending weighted to 2nd half ♦ Autonomous revenue growth  2010 TV campaign featuring Beckers brothers EBIT (in € mln) EBIT down to €1.1 mln  Lower revenue, increased raw material prices 2.0 1.1 Q2 10 Q2 11 11
  12. 12. Beckers ‘Family man of the year’Consumer action - period May-September Media  Media partners  Free publicity  Online Retail activation Out-of-home activation 12
  13. 13. American Beverage Corporation Q2 showing strong performance; expected continuation Revenue (in € mln) strong performance in H2 2011 Revenue growth in US$ 21.2%, in Є up 7.8% 24.6%  Autonomous growth 24.6%  Volume 21.1%; Price/mix 3.5% 34.6 Ongoing success RTDs Daily’s 32.0  Capacity expanded Launch ‘Summerology’ promotion Daily’s ♦ Autonomous revenue growth Little Hug softness, showing growth in second half EBIT (in € mln) quarter  Competitive activity  Lapping bonus pack promotion 2010  Active pruning lower margin products 4.5 4.5 3.5 3.6 Revitalisation Little Hug continues  Application new design to all SKU’s completed  Print advertising continues Q2 10 Q2 11 ♦ Reported, ♦ Normalised 13
  14. 14. 2011 innovations year-to-dateLittle Hug Daily’s Fruit Mixers Daily’s Ready-to-DrinkNew packaging New Sangria Mixer New Lemonade Bag-in-a-boxNew Kiwi Strawberry flavorNew Tropical variety w/bi-lingualpackaging 14
  15. 15. Ronald Merckx (CFO) Started at Wessanen as of 1 JuneFinancials 15
  16. 16. Q2/H1 2011 key figuresIn € million Q2 2011 Q2 2010 H1 2011 H1 2010Revenue ¹ 195.7 193.7 374.5 366.3Autonomous growth 2.3% 1.3%Normalised EBIT ¹ 11.8 10.9 18.8 17.3EBIT ¹ 7.4 9.4 15.5 15.8Net result ² 5.4 6.6 9.9 1.8Earnings per share (EPS) ² 0.07 0.08 0.13 0.03Operating cash flow ¹ 1.9 18.0 (3.3) 3.7 16¹ Continuing operations; ² Attributable to Wessanen equity holders
  17. 17. Bridge - salesIn € mln200198 €195.7196 €193.7194192 €4.8 €(4.3) €(1.0) €2.6 €(0.1)190 Q2 2010 Grocery HFS Frozen ABC Inter- Q2 2011 Foods segment allocations 17
  18. 18. EBIT - from normalised to reported Q2 2011 Q2 2010Normalised EBIT 11.8 10.9Exceptionals/impairments (4.4) (1.5)EBIT 7.4 9.4Tree of Life UK (divested as of 18 July)  €(3.3) mln impairment  Q3: non-cash net cumulative exchange loss deferred in equity of €(2.1) mlnKalisterra (Asset held for sale) (sale as of 1 Oct) €(1.4) mln exceptional costs 18
  19. 19. Bridge - normalised EBITIn € mln 13 €11.8 12 €10.9 11 10 €1.0 €(0.6) €(0.9) €0.9 €0.5 9 Q2 2010 Grocery HFS Frozen ABC Corporate Q2 2011 Foods entities 19
  20. 20. Net debt and leverage ratio In € mln 250 Net debt 200 150 100 €39.1 mln 50 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 11 5 Leverage ratio 4 3 2 1.1x 1 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 20
  21. 21. Cash flow Q2 2011 In € mln 8.5 (10.9) Derivatives (0.5) and FX (2.5) Investments Cash flow from 8.5 Dividends (1.3) earnings paid (6.6) Sources Increase Increase of working 2.4 net debt capital Uses 21
  22. 22. Piet Hein Merckens (CEO)Closing remarks 22
  23. 23. Closing remarks Strategy is clear, we are more focused, and in better shape, although we have to improve in multiple areas Very pleased with the quality of the people at Wessanen Increasingly implementing one consistent way of working Q2 results reconfirmation of continuous progress we are making Confident that we are well on track to further improve our performance 23
  24. 24. Q&A 24
  25. 25. Appendices
  26. 26. Revenue H1 2011 €374.5 mln ABC WE Grocery Revenue €56.9 mln Revenue €127.7 mln Normalised EBIT €5.2 mln Normalised EBIT €12.4 mln 15% 34% 15%Frozen FoodsRevenue €56.7 mlnNormalised EBIT €1.9 mln 36% WE HFS Revenue €139.5 mln Normalised EBIT €4.3 mln Inter-segment eliminations Revenue Є(6.3) mln Normalised EBIT €(5.0) mln 26
  27. 27. Q2 performance H1 performance Revenue (in € mln) Revenue (in € mln) 2.3% 1.3% 195.7 193.7 374.5 366.3♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth EBIT (in € mln) EBIT (in € mln) 18.8 11.8 17.3 10.9 9.4 7.4 15.8 15.5 Q2 10 Q2 11 H1 10 H1 11♦ Reported, ♦ Normalised ♦ Reported, ♦ Normalised 27
  28. 28. Financial guidance 2011 Net financing costs around €(4) mln  2010: €(8.3) mln; 2009: €(19.9) mln Effective tax rate around 25-30%  2010 impacted by country mix and non-deductible impairments, partly compensated by recognition tax losses Depreciation and amortisation (excluding impairments) around €(14) mln  2010: €(14) mln Capex (pp&e and intangibles) around €(15) mln  2010: €(14) mln Non-allocated expenses (incl. corporate) around €(10) mln  2010: €(12.3) mln (normalised €(10.2) mln) 28
  29. 29. European brand-platform-category map France Netherlands Germany UK Other Europe Consumer Benefit Platform Grocery HFS Grocery HFS Grocery HFS Grocery HFS Grocery HFSOrganic Nutrition– Dairy alternatives– Biscuits (nutrition)– Bread replacers– Cereals– Tea– Spreads (nutrition)Organic Taste-Indulgence– Spreads– Biscuits– Cereals– Juices TBD TBDOrganic Taste-Cooking– Condiments– Bouillon, Stock & Gravies TBD TBD TBD TBD– Meal components– Ready mealsOrganic Basics TBD TBD TBD TBD TBD TBD TBD TBD– Multi categories 29
  30. 30. Strategic objectives 2011-2013 Top-line growth  Market share gains in core categories and brands  Add-on acquisitions Improve EBIT-margins  Increase gross margins (central sourcing savings, richer product mix)  Manage non-core brands for cash  Increase capacity utilisation own factories  Reduce overhead costs Grow our export business and aim to establish footprint in other European countries Improve operational performance / Establish cross-country organisation Raise the overall talent bar / Increase people engagement 30
  31. 31. Wessanen’s building blocksSix important assets on which Wessanen’s success is built, reasonswhy our brands will be your natural choice and why Wessanen can make itsorganic brands the most desired in Europe: I. Passionate people II. Pioneering brands III. Customer partnerships & multi-channel approach IV. Network of strategic supplier partnerships V. European scale VI. Unique expertise & industry authority 31
  32. 32. Royal Wessanen nv

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