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Wessanen Q4 11 roadshow presentation

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Royal Wessanen overview for analyst & investors, in relation to Q4 2011 results

Royal Wessanen overview for analyst & investors, in relation to Q4 2011 results

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  • Objective: to gain a understanding of So Good consumers/Soya category. Methodology: 2x focus groups (online); outputs used to create main U&A questionnaire; Online U&A (600 sample); Segmentation & U&A report Sample Focus Group 10-15 Current So Good users Lapsed So Good users (but still in the soya category) Non So Good users (users of other soya products) Category non users (but non rejecters) Online U&A n=200 current So Good users (past 2 months) n=200 So Good non or lapsed users but users of other soya alternatives n=200 dairy alternative non users but non rejecters
  • Objective: to gain a understanding of So Good consumers/Soya category. Methodology: 2x focus groups (online); outputs used to create main U&A questionnaire; Online U&A (600 sample); Segmentation & U&A report Sample Focus Group 10-15 Current So Good users Lapsed So Good users (but still in the soya category) Non So Good users (users of other soya products) Category non users (but non rejecters) Online U&A n=200 current So Good users (past 2 months) n=200 So Good non or lapsed users but users of other soya alternatives n=200 dairy alternative non users but non rejecters

Transcript

  • 1. Royal Wessanen nvQ4 2011 roadshow Q4 published: 23Feb 2012 www.wessanen.com
  • 2. Revenue FY11 - €706 mln ABC Revenue €112.6 mln Normalised EBIT €9.9 mln WE Grocery Revenue €243.9 mln Normalised EBIT €18.0 mln 16% 34%Frozen Foods 16%Revenue €113.1 mlnNormalised EBIT €2.3 mln 34% WE HFS Revenue €247.5 mln Normalised EBIT €5.0 mln Non-allocated & eliminations Revenue €(11.1) mln Normalised EBIT €(11.5) mln 2
  • 3. Important datesFri 2 March Publication Annual Report 2011 (online)Tue 20 March Record date AGMTue 17 April AGM (Sheraton Schiphol) (14h00 CET)Thu 19 April Ex-dividend dateTue 2 May Payment dividendFri 27 April Q1 2012 results (7h15 CET)Wed 25 July Q2 2012 results (7h15 CET)Thu 25 October Q3 2012 results (7h15 CET)Fri 22 February Q4/FY 2012 results (7h15 CET) 3
  • 4. ContentPage5. History7. Markets8. Vision, mission, strategy15. Clipper17. FY 20117. Q4 201139. Divisions 4
  • 5. A long and rich history2015 will mark 250th anniversary of Wessanen 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 1959 - Listed on Euronext Amsterdam Seventies, eighties, nineties - range of acquisitions, such as  1993 - Merger Bols and Wessanen (split 1998)  2000/01 - Acquisition Distriborg, Zonnatura, Natudis  2010 - Divestment Tree of Life, Inc 2009 - Strategic reorientation → focus on organic food in Europe 2012 - To make our organic brands most desired in Europe 5
  • 6. Transformation 2009-2011In € mln 1,5861600 KK, LR, Righi TOL NA PANOS1200 ABC Frozen Foods Kalisterra Tree of Life UK 800 712 706 677 HFS Grocery 400 0 2009 2010 2011 2011 PFFrom portfolio approach to focus on the core 6
  • 7. Attractiveness organic food markets European organic food market is an attractive and growing segment – €21 bn market, 2011 growth est. 6% – <3% of total European food market Increasing consumer appreciation and still low per capita consumption – European Union <€30> p.a. – Germany <€75>, France <€55>, NL <€50>, UK <€30> Consumers increasingly convinced of benefits of organic food regarding health, taste and environment Grocery and HFS channels developing at different growth path – Decline percentage of households shopping in HFS channel in the Netherlands halted Wessanen has unique selling points; – Active in both channels (HFS and Grocery) – Strong brands in both channels – Increasingly orchestrating our European businesses – One of very few with true European presence 7
  • 8. Our Vision“To make our organic brands most desired in Europe” GROCERY HEALTH FOOD STORES 8
  • 9. Our Mission“Our organic food, your natural choice” 9
  • 10. Strategic objectives 2012-2014Strategic 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 savingsimprovement • Pricing strategies towards customers • 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, integrate Quality 10
  • 11. Moving to a more integrated,centrally steered businessNature of Corporate Guidance Operational Operator in en n an o e ss siti Strategic W ra n Strategic development t Orchestrator Maximise value creation by Strategic Strategic adapting governance model, guidelines Architect decision rules and effciency and effectiveness HQ Financial support functions Financial Holding Stand-alone Shared business Same business Shared skills business systems systems Degree of Business Integration 11
  • 12. OGSM to align our plans and objectives Corporate OGSM County and Functional OGSM Performance FeedbackStrategies & Goals Link to Performance Management (Bottom-Up) (Top-Down) Align to individual objectives and development plans  Linking corporate level goals to the country and functional goals and ultimately to the individual  Downwards providing clear and definitive direction to supporting functions and employees  Bottom-up providing feedback on the resources and timing required to accomplish the strategies 12
  • 13. Roadmap focused on 3 business modelsBusiness Description Countries, Brands & Entities Sourcing/developing, marketing France: Bjorg Brands and selling of own brands to Benelux: Zonnatura, Biorganic, Merza in grocery UK: Kallo, Whole Earth • Including distribution to distribution Germany: Whole Earth, Culinessa, Bjorg Grocery centers and/or stores Italy: Bjorg Sourcing/developing, marketing France: Bonneterre, Evernat and selling of own brands to HFS NL: Ekoland, De Rit, Fertilia Brands • Via wholesaler in Germany Molenaartje in HFS • Direct to stores (France, NL) Germany: Allos, Tartex, De Rit 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 and high share of in HFS products per store 13
  • 14. Driving our brands in 2 channels Health Food Specialty Stores Grocery RetailProfile Profile Small, independent, large exclusively Professional chains, small organic assortment organic assortment DevelopmenDevelopment Concentration, modern formats Strong organic growth, store in storeOpportunityOpportunity Attract & activate mainstream consumers, Build credibility and profile through strong innovative concepts organic ranges, increase frequency, margin mix improvement WessanenWessanen Building powerful brands, large ranges, Aggressive growth, powerful in-store marketing FocusFocus moving from push to pull marketing Focus on fewer, bigger brands Wholesale (NL, BEL, FR) All countries Retail formulas (NL) Allos, Tartex, De Rit, Ekoland, Bonneterre Bjorg, Zonnatura, Whole Earth, Kallo 14
  • 15. 15
  • 16. 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 16
  • 17. FY 2011 17
  • 18. Wessanen FY11 snapshot Revenue Normalised EBIT 30 25 20 15 €706 mln 10 5 0 d -5 s en FS y C te od r B ce n H ca A Fo sa ro -10 llo es n G -a ze Grocery HFS TOLUK, KT Frozen Foods ABC W on -15 o Fr N 2010 2011 Total assets FTEs (at year end) €368 mln 1,998 Grocery HFS Frozen Foods ABC Grocery HFS Frozen Foods ABC Non-allocated Corporate 18
  • 19. Q4/FY 2011 key figuresIn € million Q4 2011 Q4 2010 FY 2011 FY 2010Revenue ¹ 157.2 172.5 706.0 712.2Autonomous growth 0.8% (1.7)% 2.9% (1.3)%Normalised EBIT ¹ (1.3) 0.9 23.7 19.8As % of revenue (0.8)% 0.5% 3.4% 2.8%EBIT ¹ (39.9) (12.1) (19.0) 5.3Net result ² (35.1) (8.9) (17.1) (6.1)Earnings per share (EPS) ² (0.46) (0.12) (0.23) (0.08)Operating cash flow ¹ 7.9 21.4 8.8 34.3 19 ¹ Continuing operations; ² Attributable to Wessanen equity holders
  • 20. FY 2011 highlights Revenue (in € mln)• 2011 was an exciting year for all of us at Wessanen• Grocery and ABC bringing in strong performances on 2.9% topline and profits• Sale Tree of Life UK and Kalisterra to focus on higher 712.2 706.0 added value wholesale at HFS• Dividend per share of €0.08 (fully in cash) – Pay-out ratio 40% ♦ Autonomous third party revenue growth EBIT (in € mln)• We are … on a multi-year journey … determined to improve our performance step-by-step 23.7 … building a strong leadership group 19.8 … raising the talent bar 5.3 .. ensuring that the execution of our strategy is -19.0 progressing• We ended 2011 stronger than we started FY 10 FY 11• This will continue during 2012 and the years to come ♦ Reported, ♦ Normalised 20
  • 21. Bridge - revenue growth FYIn € mln 750 1.6% - (1.1)% (2.7)% 725 1.3% (0.9)% 700 Autonomous revenue growth Reported revenue growth 675 2.9% 650 2010 Volume Price/mix Trading Currency Divestments 2011 days 21
  • 22. Bridge - normalised EBIT FY11In € mln 30 €4.6 €8.0 €(1.3) €(5.1) €23.7 €(3.1) €(39.6) €19.8 €(2.3) 20 10 €(19.0) 0 ts s s te E y C 1 FS 0 al od IT r B en 01 01 ra ce on H A EB Fo rm po 2 2 ro ti IT or n G p ai e ce EB p C oz Im -10 Ex Fr -20 22
  • 23. Grocery - Topline growth Strategic focus Activities Topline growth • Grow core brands• Brand activation • Grow core categories • Build strongholds in new markets • Country specific growth strategies – Bjorg TV commercial, Zonnatura 360º campaign • Launch fewer, bigger, better innovations Topline growth • Execute acquisitions shortlist – Kallo relaunch soy drinks, Whole Earth city campaign Profitability • Central sourcing savings improvement • Pricing strategies towards customers • Improve operational excellence with SAP • Filling own factories Enablers • Improve talent performance management / building connected• In-store presence leadership • Simplify how we are conducting business • Activate Organic Expertise Centre, integrate Quality – Launch Bjorg on German market – Biobest shelf launched in the Netherlands – Further distribution expansion Biorganic, Dr Schär• Innovations – Bjorg lunch boxes – Kallo soy drinks – Zonnatura full range of organic tea• Execute acquisitions shortlist 23
  • 24. Grocery - Profitability improvement Strategic focus Activities Topline growth • Grow core brands• Central sourcing initiatives • Grow core categories • Build strongholds in new markets • Country specific growth strategies – Mitigated most of the upward effects on • Launch fewer, bigger, better innovations Profitability • Execute acquisitions shortlist raw material prices Profitability • Central sourcing savings improvement • Pricing strategies towards customers Enablers improvement • Improve operational excellence with SAP • Filling own factories • Improve talent performance management / building connected• A cutting the tail programme in the UK leadership • Simplify how we are conducting business • Activate Organic Expertise Centre, integrate Quality – (1.5)% effect on autonomous growth Grocery – (8)% impact on full year UK sales• Managed withdrawal from Belgian grocery• Improved pricing strategies towards customers 24
  • 25. HFS - Topline growth Strategic focus Activities Topline growth • Grow core brandsWholesale / formulas • Grow core categories • Build strongholds in new markets • Country specific growth strategies• Cooperation fresh wholesaler Kroon and Vroegop-Windig • Launch fewer, bigger, better innovations Profitability Topline growth • Execute acquisitions shortlist • Central sourcing savings improvement • Pricing strategies towards customers • Improve operational excellence with SAP• Further roll-out GooodyFooods stores Enablers • Filling own factories • Improve talent performance management / building connected – Openings: Almere, Zaandam, Apeldoorn leadership • Simplify how we are conducting business • Activate Organic Expertise Centre, integrate Quality• Store activation – Little Green Bag activation campaignBrands• Innovations – Allos range of cookies; Bonneterre range extension• Filling own factories• Execute acquisitions shortlist 25
  • 26. HFS - Profitability improvement Strategic focus Activities Topline growth • Grow core brands• Central sourcing initiatives • Grow core categories • Build strongholds in new markets • Country specific growth strategies – Mitigated most of the upward effects on • Launch fewer, bigger, better innovations Profitability • Execute acquisitions shortlist raw material prices Profitability • Central sourcing savings improvement improvement • Pricing strategies towards customers • Improve operational excellence with SAP • Filling own factories Enablers • Improve talent performance management / building connected• Divestment Kalisterra / Tree of Life UK leadership • Simplify how we are conducting business • Activate Organic Expertise Centre, integrate Quality• Operational excellence improvement – SAP introduction at Bonneterre – Upgrade in the Netherlands 26
  • 27. Enablers Strategic focus Activities Topline growth • Grow core brands• Connected leadership • Grow core categories • Build strongholds in new markets • Country specific growth strategies • Launch fewer, bigger, better innovations • Execute acquisitions shortlist• Raising the talent bar Enablers Profitability • Central sourcing savings improvement • Pricing strategies towards customers • Improve operational excellence with SAP • Filling own factories Enablers • Improve talent performance management / building connected• Strategic orchestration leadership • Simplify how we are conducting business • Activate Organic Expertise Centre, integrate Quality – OGSM framework – Central sourcing, Innovation, ICT, Organic Expertise Centre (OEC) – Supply chain• Operational excellence improvement via SAP implementations 27
  • 28. Cash flow FY11 In € mln 27.6 (31.0) Derivatives and (0.1) FX (10.8) Investments Cash flow (1.3) Dividends paid from 27.6 earnings Discontinuation (10.2) Factoring France Grocery Increase working capital (8.6) Sources 3.4 Increase of net debt Uses 28
  • 29. Working capital80 4 quarter average working capital604020 0 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 1140 Q-on-q movement working capital20 * 0-20 * €9mln impact due to ending debtor factoring-40 29 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
  • 30. Net debt and leverage ratio In € mln 200 Net debt 150 100 €32.2 mln 50 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 5 Leverage ratio 4 3 2 0.8x 1 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 30
  • 31. Q4 2011 31
  • 32. Revenue Q4 - €157.2 mln ABC WE Grocery Revenue €18.0 mln Revenue €58.7 mln Normalised EBIT €(0.5) mln Normalised EBIT €1.9 mln 11% 37% 18%Frozen FoodsRevenue €29.1 mlnNormalised EBIT €0.2 mln 34% WE HFS Revenue €53.3 mln Normalised EBIT €1.3 mln Non-allocated & eliminations Revenue €(1.9) mln Normalised EBIT €(4.2) mln 32
  • 33. Bridge - revenue growth Q4In € mln 180 2.6% 0.5% 170 (1.8)% (2.2)% Reported revenue growth 160 (8.9)% Autonomous revenue growth (8.0)% 150 0.8% 140 Q4 10 Volume Price/mix Trading Currency Divestments Q4 11 days 33
  • 34. Q4 2011 highlights Revenue (in € mln)• Revenue €157.2 mln – Autonomous revenue growth 0.8% 0.8%• Autonomous revenue growth Grocery 1.2% 172.5 – All countries reported growth, except the UK – UK portfolio pruning to enhance profitability 157.2 causing 2.3% negative impact• Normalised EBIT €(1.3) mln ♦ Autonomous third party revenue growth – Impacted by lower HFS results and higher non-allocated expenses EBIT (in € mln)• Impairment charges and one-offs resulting in a net -12.1 0.9 -1.3 loss of €35.1 mln -39.9 Q4 10 Q4 11 ♦ Reported, ♦ Normalised 34
  • 35. EBIT - from normalised to reported Q4 2011 Q4 2010 Normalised EBIT (1.3) 0.9 Exceptionals * (1.5) (4.0) Grocery Impairment Italy (3.0) HFS Impairment Benelux (19.8) FF Impairment Favory Group (64.1% owned) (14.3) Impairment TOL UK / Grocery brand (9.0) EBIT (39.9) (12.1)* Exceptionals relate to closing of Distriborg distribution centre (Grocery + HFS) and severance payments (FF) / impairment reversal ABC 35
  • 36. Cash flow Q4 In € mln 8.3 (4.6)Derivatives 0.4 and FX (4.6) Net Investments Decrease working 4.7 capital Cash flow Reduction 3.7 from 3.2 of net debt earnings Sources Uses 36
  • 37. 2011 financials Net financing costs €3.5 mln (2010: €8.3 mln)  Interest expenses €1.4 mln (2010: €3.2 mln)  Other financial income&expenses €2.1 mln (2010: €5.1 mln) Capex €13.3 mln – Property, plant & equipment: €10.1 mln (2010: € 11.2 mln) – Intangibles: €3.2 mln (2010: € 2.4mln) Depreciation and amortisation €13.7 mln – Depreciation: €11.4 mln (2010: €12.3 mln) – Amortisation: €2.3 mln (2010: €1.6 mln) • Impairments pp&e €2.5 mln; intangibles €37.1 mln Non-allocated expenses (incl. corporate) (part of EBIT) €11.6 mln – Normalised 2011: €11.5 mln – Normalised 2010: €10.2 mln, (reported €12.3 mln) Non-controlling interests €4.0 mln – Partial allocation losses incurred at FavoryFY• Income tax gain of €1.5 mln – Mainly result of non-tax deductible expenses (including goodwill impairment losses) incurred 37
  • 38. Financial guidance 2012 Net financing costs €3-4 mln Effective tax rate around 30-40% Capex about €15 mln Depreciation and amortisation about €15 mln Non-allocated expenses (incl. corporate) around €12-13 mln 38
  • 39. Divisions 39
  • 40. Grocery - revenue breakdown per quarter Q1 2011 Q2 2011 5.1% 5.9% 65.9 61.8 61.1 57.4 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth Q3 2011 Q4 2011 1.2% 7.5% 3.5% 57.5 58.7 60.0 54.6 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth 40 ♦ Correcting for UK cutting the tail
  • 41. 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 41
  • 42. • Rebuilding 42
  • 43. HFS - revenue breakdown per quarter Q1 2011 Q2 2011 (6.8)% (6.1)% 70.6 73.2 68.9 71.0 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth Q3 2011 Q4 2011 (7.1)% (3.1)% 68.3 70.1 54.7 53.3 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth 43
  • 44. 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 44
  • 45. FF - revenue breakdown per quarter Q1 2011 Q2 2011 (6.0)% (7.9)% 29.7 30.7 28.7 27.0 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth Q3 2011 Q4 2011 2.4% 0.8% 29.1 27.3 29.3 27.1 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth 45
  • 46. Frozen Food examples of activationBicky Double Chicken burgerIntroduced in October in Belgian out-of-homeFurther extension Bicky rangeNewly designed carton boxSupported by TV commercials and online campaign Online campaign in Flanders (Dutch) and Wallonia (French) 46
  • 47. ABC - US$ revenue breakdown per quarter Q1 2011 Q2 2011 24.6% 21.6% 49.9 30.9 41.1 25.1 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth Q3 2011 Q4 2011 7.9% 53.5% 53.2 21.6 23.4 34.6 ♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth 47
  • 48. ABC examples of activation 48
  • 49. Royal Wessanen nvTo make our organic brands most desired in Europe www.wessanen.com
  • 50. Important datesFri 2 March Publication Annual Report 2011 (online)Tue 20 March Record date AGMTue 17 April AGM (Sheraton Schiphol) (14h00 CET)Thu 19 April Ex-dividend dateTue 2 May Payment dividendFri 27 April Q1 2012 results (7h15 CET)Wed 25 July Q2 2012 results (7h15 CET)Thu 25 October Q3 2012 results (7h15 CET)Fri 22 February Q4/FY 2012 results (7h15 CET) 50