2. Overview
Rigoni di Asiago performs production and trade activities in the food industry,
offering products exclusively from organic farming.
Starting with the traditional production of honey, the company has successfully
added Fiordifrutta, Dolcedì, and Nocciolata.
All of these high-quality products are among the leading sellers in Italy.
The company had a workforce of around 69 employees in 2014
Since the company , during the past years, has gained a stronger position in the
market thanks to final customers ’s increasing satisfaction; the main goal of the
management is to predispose a productive structure able to deal with the
growing demand and expansion beyond Italy.
Babuin A., De Fecondo I., Magliani E., Sivero M. 2
Keydata(€ ths)
€ ths Rigoni di Asiago
2012 2013 2014 CAGR
Sales 55.920,1 67.706,3 78.959,9 18,8%
EBITDA 4.748,8 6.467,4 7.989,4 29,7%
EBIT 2.370,8 3.689,5 5.298,1 49,5%
Net income 682,4 1.614,5 2.434,4 88,9%
Net workingcapital 13.215,8 17.944,9 11.317,7 -7,5%
Invested capital 46.601,8 49.220,1 43.556,5 -3,3%
Net financial position 20.793,8 23.176,3 21.465,7 1,6%
ROIC 3,1% 5,4% 7,7%
3. Key stages:
1923: Honey production begins, with Grandmother Elisa.
1979: The business grows and diversifies its production, selling other products as well.
1991: The new production plant is open on the Asiago Plateau.
1992: Production becomes totally organic. All of the products are certified, and are among the
first in Europe to achieve certification.
1996: The Rigoni brothers create Fiordifrutta – an innovative, 100% organic preparation made
solely with fruit and apple juice.
The story of Rigoni di Asiago is the story of a family business that, over time, became a major company. It
combines tradition and innovation, respect for nature, and genuine flavors.
The company’s journey began in the 1920s, when Grandmother Elisa turned her beekeeping activity, which
up until then had been something of a hobby, into a proper business.
3Babuin A., De Fecondo I., Magliani E., Sivero M.
History (1/2)
4. History (2/2)
2005: The new logistics center opens in Verona.
2006: A mere 10 years after its creation, Fiordifrutta becomes market leader in Italy
(according to Nielsen data).
2007: Rigoni di Asiago U.S.A. is founded.
2008: New organic products are created: Dolcedì, a natural sweetener, and Nocciolata, a
delicious hazelnuts and cocoa spread.
2009: The French subsidiary is launched.
2012: The logistics center in Albaredo d’Adige doubles its surface area and storage capacity.
Babuin A., De Fecondo I., Magliani E., Sivero M. 4
5. Ownership Structure
Babuin A., De Fecondo I., Magliani E., Sivero M. 5
Rigoni di Asiago’s subscribed and fully paid-up share capital amounts to €13,189,994.
Its reference shareholder is MONTE MIELA S.r.l., which holds the 64,44% of the shares, directly attributable to the Rigoni family.
The remaining 35,56% of Rigoni di Asiago belongs to FONDO ITALIANO D’INVESTIMENTO SGR S.p.a., whose entrance in the society
led to Rigoni di Asiago €10,000,000 (€4,689,994 as Share Capital and €5,310,006 as Share Premium).
Board ofDirectors
Office held Name
Chairman Luigi Rigoni
ChiefExecutive Andrea Rigoni
ChiefOfficier Antonio Rigoni
Production Manager Mario Rigoni
6. Babuin A., De Fecondo I., Magliani E., Sivero M. 6
Group Structure
Operational
Commercial
RIGONI FAMILY
KAMPLAN S.p.A.
GIOCHELE Srl
MONTE MIELA Srl FONDO ITALIANO D’INVESTIMENTO SGR S.p.A.
RIGONI DI ASIAGO Srl
ECOVITA O.o.d. BIOLESKA D.o.o.
BIOTOP EAD
RdA RETAIL & SHOPS SrlECOTERRA E.o.o.d.NERI & ASIAGO E.o.o.D.
RIGONI DI ASIAGO USA LLCRIGONI DI ASIAGO FRANCE Sarl
BIOFRUTTA E.o.o.d.
100%
50,25%
96,35%
64,44%
49,75%
3,65%
35,56%
100% 75,66% 100% 100% 100%
100% 90%
100% 100%
7. 7Babuin A., De Fecondo I., Magliani E., Sivero M.
Markets and Products
Rigoni di Asiago is a historical reality in its reference environment. Family business appeared in the late ‘70s
to produce and commercialize honey; in the years has become a leader, not only in Italy, in the “BIO” food
market.
Rigoni has proven itself as first brand producer, in Italy in the jam industry, beyond to represent the “ price
leader” in this sector; witnessing its management’s ability to offer consumers not only a high quality
products range, but also a different merchandise able to distinguish from the competitors for taste and
health properties.
The company offers a large range of products: “MIELBIO”organic honey, “FIORDIFRUTTA” made in 26
different flavours, “NOCCIOLATA” organic hazelnut spreadabe cream, “DOLCEDI’’ a natural apple-made
sweetener.
8. Babuin A., De Fecondo I., Magliani E., Sivero M. 8
Markets and Products - Fiordifrutta
Since it was first launched in the mid ‘90s, Fiordifrutta has been loved and trusted by consumers, thus
becoming one of the Italian jam market leader.
Fiordifrutta is produced using only top quality organic fruit, selected from the best areas of origin, picked only
when perfectly ripened, sweetened with apple juice and with the addition of natural fruit pectin. It is
processed at room temperature to preserve at bets the taste and fragrance of freshly-picked fruit. It contains
no added sugar, artificial aromas and colors.
Fiordifrutta comes in 26 different flavors, from Classic fruits (Strawberries and Wild Strawberries, Apricots,
Wildberries, Peaches, etc) to the more exclusive, original ones (Rosehip, Pink Grapefruit, Gooseberry,
Pomegranate).
9. Babuin A., De Fecondo I., Magliani E., Sivero M. 9
Markets and Products - Mielbio
Mielbio is the Italian organic honey selected by Rigoni di Asiago, in the best varieties and different flavors.
Mielbio can be “monoflora” or “millefiori”. There are 12 Mielbio varieties, from classic Acacia to Lime, from
Orange blossom to Lemon, from Thyme to Chestnut, to Pine, to Forest, all collected from the best areas in the
different Italian regions.
All comes from honey which, as we all know, crystallizes faster or slower depending on type, during the year of
harvest. This process is modified during production by a completely natural method perfected and patented by
the Rigoni family, thanks to its expertise in this sector.
Mielbio is produced with full respect for nature and consumers, and it is a source of pure well-being.
10. Babuin A., De Fecondo I., Magliani E., Sivero M. 10
Markets and Products - Nocciolata
Delicious, because it is made from selected,
certified, top quality, organic ingredients.
Creamy, because of a slow, artisanal process based
on a traditional recipe.
Natural, because its rigorously organic composition
goes through no chemical process, and does not
contain additives, colorants, or artificial aromas.
A balance achieved after years of research to create
a harmonious recipe, as far as taste and
consistency. A recipe that uses only top quality
hazelnuts, the best cocoa and cocoa butter
varieties, cane sugar, skimmed powdered milk,
cold-pressed sunflower oil and natural vanilla
extract.
Nocciolata contains no palm oil and hydrogenated
fats, no aromas, preservatives and colorants. This is
what makes it the ideal snack product for adults
and children.
11. Babuin A., De Fecondo I., Magliani E., Sivero M. 11
Markets and Products - Dolcedì
Extracted exclusively from organic apples, through
a genuine, transparent production process, Dolcedì
is a natural sugar with a considerable number of
benefits compared to traditional sugars and
synthetic sweeteners.
The natural sugar composition and a significant
amount of fructose (over 50% of the total) makes it
an extraordinary, natural sweetener. Just consider
the following: Dolcedì sweetens more than sugar,
with a 30% lower calorie content. The glycemic
index of Dolcedì computation has classified the
product as a low Glycemic Index food.
Rigoni di Asiago uses 10 kg of organic apples to
produce just one kg of Dolcedì, thus offering a
healthy, innovative, really top-quality product for
our tables.
Dolcedì is thick and syrupy and dissolves easily in
hot and cold drinks. It replaces traditional sugar in
all its uses.
12. Market Application and Geography
Babuin A., De Fecondo I., Magliani E., Sivero M. 12
52.007
8.757 8.300
5,6%
-13,1% 29,8%
Fiordifrutta/confetture Honey Nocciolata
% YoY 2014-2013 increase
CAGR 2012-2014
10,3%
6,2% 48,2%
64.743
9.741
1.284
8,4%
51,8%
10,3%
Italy Europe North America
% YoY 2014-2013
increase
16,3%
9,5%
7,6%
CAGR 2012-2014
SALES BY
APPLICATION
SALES BY
GEOGRAPHIC
AL AREA
Sales turnover in 2014 amounted to € 76,144,5 ths, and the most
sold product was Fiordifrutta. As for geographies, Italy
rapresented the biggest market for Rigoni di Asiago.
The overall businesse in 2014 performed
well. Fiordifrutta increased by 5,6% as
compared to the full year and Nocciolata by
29,8%. Unfortunately Honey decreased by
2% over the whole year.
Rigoni di Asiago experiences a positive
result in all the countries where it works.
Rigoni di Asiago’s reference market is
obviously Italy, which increased by the 8,4%
in 2014, but it is impressive how it
expanded its market over Europe (by
51,8%) and also in North America (10,3%)
13. Competitive Strategy and Business Idea
Babuin A., De Fecondo I., Magliani E., Sivero M. 13
CONSUMERS
SATISFACTION
Consumers
brand’s fidelity is
the main Rigoni
purpose
VALUES
•Organic choice
•Sustainability: an
Eco friendly path
•Ethical and social
commitment
PRODUCT
DIFFERENTIATION
Rigoni provides
several flavours to
match avery
consumer taste
FOCUS
Rigoni is market
focused offering a
large range of
‘’Bio’’ products
BUSINESS IDEA
To produce the best tasteful and
healthy organic products,
respecting the ethical and
environmental sustainability
14. Strategy: Implementation and Developement for the Future (1/2)
Babuin A., De Fecondo I., Magliani E., Sivero M. 144.749
6.467
7.989
8,4%
9,6%
10,5%
2012 2013 2014
EBITDA margin
EBITDAREVENUES
Rigoni group shows important development’s prospectives, aiming in the short/medium period to:
Inside Italy:
The strengthening of the «FIORDIFRUTTA» leadership into the large scale retail distribution.
Enlarge its stake in the spreadable cream market.
Protect the current position in the honey business.
56.476
67.660
76.145
19,8%
12,5%
2012 2013 2014
YoY % increase
15. Strategy: Implementation and Developement for the Future (2/2)
Babuin A., De Fecondo I., Magliani E., Sivero M. 15
Outside Italy:
In Europe, Rigoni di Asiago aims to repeat and stabilize the good revenues growth trend
registered in France, focusing mainly on «NOCCIOLATA» and trying to establish partnership with
foreign distribution companies.
In the USA, it is desirable a selective business’ development in target areas, in order to avoid the
clientele scattering, focusing on «NOCCIOLATA».
Advertisement Strategy:
In order to enlarge the number of consumers, Rigoni di Asiago intends to promote «NOCCIOLATA»
through commercials on TV channels, web marketing, tasting events in the stores; as well as
introducing a wider range of product’s shapes.
«FIORDIFRUTTA» will be promoted also through radio channels and and in medical structures
remarking its nutrional and wealth properties.
Ultimately Rigoni di Asiago has the target to further improve its stakes in the Italian market, reinforcing its
leadership in the «BIO» market; the stategy abroad is based on the promotion of its products and
company’s values.
16. In Italy, Rigoni di Asiago operates in very competitive markets, characterized by low rate of consumption
growth except for the”NOCCIOLATA” spread cream one.
The company has to face several competitors; usually stronger in term of brand awareness, revenues and
production output.
Below is shown the comparison of two main indicators characterizing the 2013 path of Rigoni di Asiago
compared to some italian competitors:
ZUEGG and VALSOIA for jam/marmelade sector, AMBROSOLI for honey, ELAH DUFOUR and NUTKAO
for spread cream segment.
REVENUES
180.000
150.000
120.000
90.000
60.000
30.000
0
ROI
28,0%
24,0%
20,0%
16,0%
12,0%
8,0%
4,0%
0,0%
-4,0%
Strategy: Competitive Positioning
Babuin A., De Fecondo I., Magliani E., Sivero M. 16
17. Industry – Five Forces Analysis
Babuin A., De Fecondo I., Magliani E., Sivero M. 17
Industry growth
Concentration
Differentiation
Switching costs
Scale/Learning
economies
Fixed-Variable
costs
Excess capacity
Exit barriers
Scale economies
First mover
advantage
Switching costs
Relationship
with customer
Legal barriers
Relative price and
performance
Buyers'
willingness to
switch
Cheap alternative
products
Switching costs
Differentiation
Importance of
product for cost
and quality
Numbers of
buyers
Volume per
buyer
Switching costs
Differentiation
Importance of
product for cost
and quality
Numbers of
buyers
Volume per
buyer
Industry
Profitability
18. Industry – Five Forces Analysis Synthesis
Babuin A., De Fecondo I., Magliani E., Sivero M. 18
Rivalry among existing firm
Industry growth 4,0
Concentration 1,5
Differentiation 3,5
Switching costs 1,5
Scale/Learning economies 1,5
Fixed-Variable costs 4,0
Excess capacity 1,0
Exit barriers 2,5
Avg 2,4
FF impact Low medium
Threat of new entrants
Scale economies 2,0
First mover advantage 2,0
Switching costs 1,5
Relationship with customer 3,5
Legal barriers 4,0
Avg 2,6
FF impact High Medium
Threat of substitute products
Relative price and performance 3,5
Buyers' willingness to switch 4,0
Cheap alternative products 4,0
Avg 3,8
FF impact Strong
Bargaining power of buyers
Switching costs 3,5
Differentiation 3,5
Importance of product for cost and quality4,0
Numbers of buyers 3,5
Volume per buyer 2,5
Avg 3,4
FF impact Strong
Bargaining power of suppliers
Switching costs 2,0
Differentiation 3,5
Importance of product for cost and quality4,0
Numbers of buyers 3,6
Volume per buyer 4,5
Avg 3,5
FF impact Strong
Degree of
rivalry
New entrants
SubstitutesBuyer power
Supplier
power
19. Strenghts
Rigoni family and management, since 1979 have
been providing: operative stability, ability to raise
funds and effective competitiveness in the market.
The clear and distinctive product’s positioning, its
growing level of quality percieved by costumers and
the constant investiments in «Brand Awareness»
guarantee to the company a relevant competitive
advantage on the competitors.
Great reputation also outside Italy, with a large and
innovative range of products.
Focus on the the «BIO» market and on the
sustainability of the whole production procedure.
Weaknesses
Narrow operative structure, which need to be
necesserly enlarged in order to better exploit the
market.
Management complexity due to the jointed group’s
structure, made by different companies covering a
single stage of the product’s production/
distribution, all of the them financed by Rigoni
S.R.L.
Equity amount does not guarantee an adeguate
coverage of the fixed assets.
Difficulty in the constant monitoring of foreign
markets hampering the capability to exploit
opportunities.
Babuin A., De Fecondo I., Magliani E., Sivero M.
SWOT Analysis
Opportunities
Rigoni di Asiago belongs to the organic market,
which has excellent growth prospectives, due to the
increasing number of food intolerances and
consumer’s attention to ingredients nutritional
properties.
Widening the supply in the spredable cream sector,
which constitutes a faster growing market respect
to the jam and honey ones.
Threats
The company operates in a sector characterized by
a growing strenght of the «Private, tending to erode
the market’s stakes of the trademarks owned
companies.
In the internal market it is especially important the
possibile enhanced pressure of the competitors
and the continous decrease of the Italians
purchasing power.
The international expansion is delimited by the
presence of strong competitors, frequently able to
develop commercial supply strategy of lowest
price.
19
20. Babuin A., De Fecondo I., Magliani E., Sivero M.
Peer Analysis – Focus on Valsoia (Overview)
20
Valsoia has been Italy's premier health food company since its foundation in 1990, leading the
market for quality, product innovation and providing gourmet choices from breakfast through
to dinner and late-night snacks.
Valsoia's innovative product range includes drinks, desserts, ice creams, plant based
alternative to yogurt, biscuits, veggie burgers and even more; offering an extensive and varied
choice of delicious foods for all tastes and needs, with vitamin-rich, low fat, high protein,
gluten-free, for vegetarians and vegans, as well as people with food intolerances.
Main products are:
Plant based Drinks - available in Soya, Rice and Oat versions, are an excellent alternative to
cow's milk because they are naturally free from lactose and therefore easy to digest.
Plant based alternative to yogurt -Yosoi Valsoia is the soft creamy plant based yogurt
alternative. Rich in live cultures, calcium and vitamins, it is naturally lactose free and therefore
easy to digest. It comes in classic flavours, fruit versions, or a natural alternative with no added
sugar.
Non-dairy Hazelnut Spread-is an exquisite cream of hazelnuts and low-fat cocoa powder, rich
in fibre.
Vegan and Vegetarian Meals -appetising and nourishing due to their high noble protein
content, are a true valid alternative to meat.
21. Babuin A., De Fecondo I., Magliani E., Sivero M.
Peer Analysis – Focus on Valsoia (Key Number)
21
Key datacomparison (€ ths)
€ ths Rigoni di Asiago Valsoia
2012 2013 2014 CAGR 2012 2013 2014 CAGR
Sales 55.920,1 67.706,3 78.959,9 18,8% 93.308,00 100.365,00 114.015,00 11%
YoY% increase 21,1% 16,6% 8% 14%
EBITDA 4.748,8 6.467,4 7.989,4 29,7% 9.432,00 12.786,00 17.967,00 38%
EBITDAmargin 8,5% 9,6% 10,1% 10% 13% 16%
EBIT 2.370,8 3.689,5 5.298,1 49,5% 7.802,00 11.169,00 16.280,00 44%
EBITmargin 4,2% 5,4% 6,7% 8% 11% 14%
Net income 682,4 1.614,5 2.434,4 88,9% 4.490,00 9.889,00 10.701,00 54%
Net income margin 1,2% 2,4% 3,1% 5% 10% 9%
Net working capital 13.215,8 17.944,9 11.317,7 -7,5% 13.451,00 29.996,00 28.293,00 45%
Invested capital 46.601,8 49.220,1 43.556,5 -3,3% 27.009,00 35.645,00 44.301,00 28%
Net financial position 20.793,8 23.176,3 21.465,7 1,6% 38.913,00 38.714,00 29.912,00 -12%
ROIC 3,1% 5,4% 7,7% 16,80% 19,75% 24,23%
Actually important for the comparison to Rigoni di Asiago, has been the purchase made by VALSOIA SPA of Santa
Rosa, well known preserve/marmelade italian producer company, in September 2011 from the UNILEVER group.
22. Financial Overview – Total Funds Invested (2012-2014)
22Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT 1 RIGONI DI ASIAGO: Reorganized Balance-Sheet (Invested Capital)
€ ths % on Sales
2012 2013 2014 2012 2013 2014
Working cash* 564,8 676,6 761,4 1,0% 1,0% 1,0%
Trade receivables 14.582,3 14.918,7 12.597,3 25,8% 22,0% 16,5%
Inventories 16.307,8 16.596,3 17.719,2 28,9% 24,5% 23,3%
Trade payables (19.224,1) (18.348,9) (20.240,2) (34,0%) (27,1%) (26,6%)
Trade working capital 12.230,8 13.842,6 10.837,7 21,7% 20,5% 14,2%
Other operating current assets 2.246,8 5.022,5 1.361,2 4,0% 7,4% 1,8%
Other operating current liabilities (1.261,8) (920,1) (881,2) (2,2%) (1,4%) (1,2%)
Other current assets and liabilities 985,0 4.102,3 480,0 1,7% 6,1% 0,6%
Net working capital 13.215,8 17.944,9 11.317,7 23,4% 26,5% 14,9%
Tangible assets 10.645,6 10.185,7 11.708,7 18,9% 15,1% 15,4%
Operating intangibles 1.717,7 1.338,3 1.384,9 3,0% 2,0% 1,8%
Total operating fixed capital 12.363,3 11.524,0 13.093,6 3,0% 2,0% 1,8%
Operating receivables and other non-current assets 21.881,1 20.407,7 19.357,9 38,7% 30,2% 25,4%
Operating deferred-tax assets/(liabilities) 47,2 79,8 67,7 0,1% 0,1% 0,1%
Operating non-current liabilities (595,0) (340,0) 0,0 (1,1%) (0,5%) 0,0%
Operating provisions (417,2) (534,4) (434,8) (0,7%) (0,8%) (0,6%)
Total other non-current operating assets and liabilities 20.916,1 19.613,1 18.990,8 37,0% 29,0% 24,9%
Invested capital excluding goodwill and similar intangibles 46.495,2 49.082,0 43.402,1 82,3% 72,5% 57,0%
Goodwill and similar intangibles 106,6 138,1 154,5 0,2% 45,6% 52,5%
Deferred tax asset/(liabilities) on similar intangibles 0,0 0,0 0,0 0,0% 0,0% 0,0%
Goodwill and other similar intangibles 106,6 138,1 154,5 0,2% 45,6% 52,5%
Invested capital including goodwill and similar intangibles 46.601,8 49.220,1 43.556,5 82,5% 72,7% 57,2%
Non-operating current assets 0,0 0,0 50,0 0,0% 0,0% 0,1%
Other non-operating current liabilities (162,0) (181,9) (246,6) (0,3%) (0,3%) (0,3%)
Non-operating non-current assets 0,0 0,0 0,0 0,0% 0,0% 0,0%
Non-operating deferred-tax assets/(liabilities) (32,2) 0,0 0,0 (0,1%) 0,0% 0,0%
Non-operating non-current liabilities 0,0 0,0 0,0 0,0% 0,0% 0,0%
Non-operating assets (194,2) (181,9) (196,6) (0,3%) (0,3%) (0,3%)
Total funds invested 46.407,6 49.038,3 43.359,9 82,2% 72,5% 56,9%
23. Financial Overview – Total Source of Financing (2012-2014)
23Babuin A., De Fecondo I., Magliani E., Sivero M.
€ ths
2012 2013 2014
Cash and cash equivalents (4.546,1) (3.287,7) (10.993,3)
Working cash (included in TWC) 564,8 676,6 761,4
Financial current assets and derivatives 0,0 0,0 0,0
Excesscash (3.981,3) (2.611,1) (10.231,9)
EXHIBIT2 RIGONI DI ASIAGO: Reorganized Balance-Sheet (Source ofFinancing)
€ ths % on Sales
2012 2013 2014 2012 2013 2014
Excess cash (3.981,3) (2.611,1) (10.231,9) (7,0%) (3,9%) (13,4%)
Long-term borrowings 10.205,3 8.872,9 5.340,1 18,1% 13,1% 7,0%
Short-term borrowings 20.793,8 23.176,3 21.465,7 36,8% 34,3% 28,2%
Net financial position 27.017,8 29.438,1 16.574,0 47,8% 43,5% 21,8%
Provision for employee benefit 637,2 668,5 764,9 1,1% 1,0% 1,0%
Non-operating provisions 369,1 395,6 733,8 0,7% 0,6% 1,0%
Debt equivalents 1.006,2 1.064,1 1.498,6 1,8% 1,6% 2,0%
Net financial position and debt equivalents 28.024,0 30.502,2 18.072,6 49,6% 45,1% 23,7%
Shareholders' equity 20.656,6 22.271,5 24.706,2 36,6% 32,9% 32,4%
Total source offinancing 48.680,6 52.773,6 42.778,8 86,2% 78,0% 56,2%
*Working cash on revenues 1,0% 1,0% 1,0%
24. Financial Overview – Income Statement (2012-2014)
24Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT3 RIGONI DI ASIAGO: Reorganized Income Statement
€ ths % on Sales
2012 2013 2014 2012 2013 2014
Revenues 56.475,5 67.660,0 76.144,5 100,0% 100,0% 100,0%
Change in goods (555,4) 46,3 2.815,4 (1,0%) 0,1% 3,7%
Costs for capitalised internal works 0,0 0,0 0,0 0,0% 0,0% 0,0%
Grants related to income 233,8 263,1 279,3 0,4% 0,4% 0,4%
Production value 56.153,9 67.969,3 79.239,2 99,4% 100,5% 104,1%
(25.685,32) (31.640,70) (36.508,42) (45,5%) (46,8%) (47,9%)
(1.584,48) (242,19) 1.692,46 (2,8%) (0,4%) 2,2%
(24.328,00) (26.301,55) (28.851,34) (43,1%) (38,9%) (37,9%)
(2.976,22) (3.801,89) (4.197,58) (5,3%) (5,6%) (5,5%)
EBITDA 4.748,8 6.467,4 7.989,4 8,4% 9,6% 10,5%
Depreciation (1.179,5) (1.263,4) (1.183,6) (2,1%) (1,9%) (1,6%)
Amortization ofoperatingintangibles (1.033,0) (1.046,0) (1.086,0) (1,8%) (1,5%) (1,4%)
Operatingprovisions (100,0) (198,0) (244,7) (0,2%) (0,3%) (0,3%)
EBITA 2.436,3 3.960,0 5.475,1 4,3% 5,9% 7,2%
Amortization ofassets similar to goodwill (71,0) (101,0) (113,0) (0,1%) (0,1%) (0,1%)
Balance ofdifferent gains/losses 5,5 (169,5) (64,0) 0,0% (0,3%) (0,1%)
EBIT 2.370,8 3.689,5 5.298,1 4,2% 5,5% 7,0%
Net interest income (expense) (657,2) (806,7) (1.074,1) (1,2%) (1,2%) (1,4%)
(314,0) (142,0) (162,0) (0,6%) (0,2%) (0,2%)
Exchange income (expenses) (24,9) (116,8) (138,7) (0,0%) (0,2%) (0,2%)
EBT 1.374,7 2.624,1 3.923,3 2,4% 3,9% 5,2%
Taxes (692,3) (1.009,6) (1.489,0) (1,2%) (1,5%) (2,0%)
Net Income 682,4 1.614,5 2.434,4 1,2% 2,4% 3,2%
Raw materials, consumables and merchandise
Change in raw materials
Other operatingcosts
Personnel costs
Adjustments to the carryingvalue offinancial assets
25. Financial Overview – Cash Flow (2013-2014)
25Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT5 RIGONI DI ASIAGO: Free Cash FlowCalculation
€ ths % on Sales
2013 2014 2013 2014
NOPLAT 2.599,0 3.584,4 3,8% 4,7%
Amortization ofoperatingintangibles 1.046,0 1.086,0 1,5% 1,4%
Depreciation 1.263,4 1.183,6 1,9% 1,6%
Grosscash flow 4.908,4 5.854,0 7,3% 7,7%
Change in operatingworkingcapital (4.729,1) 6.627,2 (7,0%) 8,7%
Net capital expenditures (1.470,1) (3.839,2) (2,2%) (5,0%)
Change in other operatingassets and liabilities 1.303,0 622,3 1,9% 0,8%
Grossinvestment (4.896,2) 3.410,3 (7,2%) 4,5%
Free cash flowbefore goodwill and similar intangibles 12,2 9.264,3 0,0% 12,2%
Investments in goodwill and other intangibles (132,5) (129,4) (0,2%) (0,2%)
Free cash flowafter goodwill and similar intangibles (120,3) 9.134,9 (0,2%) 12,0%
Investments in non-operatingassets (12,4) 14,7 (0,0%) 0,0%
Net interest income (expense) (806,7) (1.074,1) (1,2%) (1,4%)
Adjustments to the carryingvalue offinancial assets (142,0) (162,0) (0,2%) (0,2%)
Exchange income (expenses) (116,8) (138,7) (0,2%) (0,2%)
Non-operatingtaxes 351,3 401,8 0,5% 0,5%
Non-operatingcash flow (726,5) (958,2) (1,1%) (1,3%)
Cash available to investors (846,7) 8.176,7 (1,3%) 10,7%
Change in debt equivalents 57,9 434,6 0,1% 0,6%
Change in shareholders'equity 0,5 0,4 0,0% 0,0%
Decrease (increase)in net financial position (788,4) 8.611,6 (1,2%) 11,3%
Beginningnet financial position 27.017,8 29.438,1 39,9% 38,7%
Endingnet financial position 27.806,2 20.826,5 41,1% 27,4%
26. Financial Overview – Index (1/2)
26Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT5 Rigoni di Asiago: Index
2012 2013 2014
Profitability
ROE 3,3% 7,5% 10,4%
ROIC 3,1% 5,4% 7,7%
Premium over book capital 1,00 1,00 1,00
ROIC without goodwill 3,1% 5,4% 7,8%
Pretax ROIC 5,2% 8,3% 11,8%
Operating margin (ROS) 4,3% 5,9% 7,2%
Revenues/invested capital 1,21 1,42 1,65
Net working capital/revenues 23,4% 23,0% 19,2%
Operating fixed assets/revenues 21,9% 17,7% 16,2%
Growth rates CAGR 2012-14
Revenues 19,8% 12,5% 16,1%
EBITDA 36,2% 23,5% 29,7%
EBITA 62,5% 38,3% 49,9%
NOPLAT 80,0% 37,9% 57,5%
IC 5,6% -11,5% -3,3%
IC excluding goodwill 5,6% -11,6% -3,4%
Net working capital 35,8% -36,9% -7,5%
Operating fixed capital -6,8% 13,6% 2,9%
27. Financial Overview – Index (2/2)
27Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT5 Rigoni di Asiago: Index
2012 2013 2014
Working Capital Management (Days in revenues)
Working Cash 4 4 4
Receivables 94 80 60
Inventories 105 90 85
Suppliers 124 99 97
Other current assets and liabilities (6) (22) (2)
Net working capital 85 97 54
Financial Structure
NFP/Equity 1,4 1,4 0,7
NFP/EBITA 11,5 7,7 3,3
NFP/EBITDA 5,9 4,7 2,3
Coverage
EBIT/interest 3,6 4,6 4,8
EBITA/interest 3,7 4,9 5,1
EBITDA/interest 7,2 8,0 7,4
Cash available for investors/NFP -2,9% 49,3%
FCF from operation/NFP -0,4% 55,1%
Labour cost and productivity CAGR 2012-14
Avg cost per employee (in €.000) 17,5 16,0 16,4
Growth rate -8,2% 2,5% -3,0%
Revenues per employee (in €.000) 18.975,55 17.796,40 18.140,12
Growth rate -6,2% 1,9% -2,2%
Value added per employee (in €.000) 2.595,59 2.701,10 2.903,35
Growth rate 4,1% 7,5% 5,8%
EBITDA per employee (in €.000) 1.595,59 1.701,10 1.903,35
Growth rate 6,6% 11,9% 9,2%
EBITA per employee (in €.000) 818,59 1.041,57 1.304,36
Growth rate 27,2% 25,2% 26,2%
28. Projection – Key Trends
28Babuin A., De Fecondo I., Magliani E., Sivero M.
Sales and annual increase EBITDA and EBITDA margin
Free cash flow before goodwill and similar
intangibles and NFP/EBITDA
Economic Profit and ROIC
29. Projection – Sales 2014-2019 Bridge & Net Working Capital (Days on Sales)
29Babuin A., De Fecondo I., Magliani E., Sivero M.
906
30. Projection – Balance Sheet (2015P-2019P)
30Babuin A., De Fecondo I., Magliani E., Sivero M.
2015 2016 2017 2018 2019
859,4 939,0 1.013,0 1.068,2 1.126,6
13.656,9 14.664,5 15.541,6 16.095,6 16.975,5
18.837,1 20.581,8 22.202,2 23.411,8 24.691,7
(22.369,1) (24.440,9) (26.365,2) (27.801,5) (29.321,4)
10.984,4 11.744,5 12.391,6 12.774,0 13.472,4
600,0 600,0 600,0 600,0 600,0
11.584,4 12.344,5 12.991,6 13.374,0 14.072,4
14.772,1 16.512,9 18.275,2 19.961,0 21.601,6
18.990,8 18.990,8 18.990,8 18.990,8 18.990,8
45.347,3 47.848,2 50.257,6 52.325,8 54.664,8
41,5 (71,5) (184,5) (297,5) (410,5)
45.388,7 47.776,6 50.073,1 52.028,3 54.254,2
(196,6) (196,6) (196,6) (196,6) (196,6)
45.192,1 47.580,1 49.876,5 51.831,7 54.057,6
% On Sales
2015 2016 2017 2018 2019
1,0% 1,0% 1,0% 1,0% 1,0%
15,9% 15,6% 15,3% 15,1% 15,1%
21,9% 21,9% 21,9% 21,9% 21,9%
-26,0% -26,0% -26,0% -26,0% -26,0%
12,8% 12,5% 12,2% 12,0% 12,0%
0,7% 0,6% 0,6% 0,6% 0,5%
13,5% 13,1% 12,8% 12,5% 12,5%
17,2% 17,6% 18,0% 18,7% 19,2%
22,1% 20,2% 18,7% 17,8% 16,9%
52,8% 51,0% 49,6% 49,0% 48,5%
0,0% -0,1% -0,2% -0,3% -0,4%
52,8% 50,9% 49,4% 48,7% 48,2%
-0,2% -0,2% -0,2% -0,2% -0,2%
52,6% 50,7% 49,2% 48,5% 48,0%
EXHIBIT 6 Rigoni di Asiago: Forecast Balance-Sheet
€ ths
Working cash*
Trade receivables
Inventories
Trade payable
Trade working capital
Other current assets
Other current liabilities
Other current assets and liabilities
Net working capital
Tangible assets
Operating intangibles
Total operating fixed capital
Operating non-current assets
Operating deferred-tax assets/(liabilities)
Operating non-current liabilities
Operating provision
Total other non-current operating assets and liabilities
Invested capital excluding goodwill and similar intangibles
Goodwill and other similar intangibles
Deferred tax liabilities on similar intangibles
Goodwill and other similar intangibles
Invested capital including goodwill and similar intangibles
Non-operating current assets
Other non-operating current liabilities
Non-operating non-current assets
Non-operating deferred-tax assets/(liabilities)
Non-operating non-current liabilities
Non-operating assets
Total funds invested
31. Projection – Income Statement (2015P-2019P)
31Babuin A., De Fecondo I., Magliani E., Sivero M.
2015 2016 2017 2018 2019
85.944,3 93.904,5 101.297,8 106.816,1 112.655,8
2.815,4 2.815,4 2.815,4 2.815,4 2.815,4
0,0 0,0 0,0 0,0 0,0
280,0 280,0 280,0 280,0 280,0
89.039,7 96.999,9 104.393,1 109.911,5 115.751,2
(39.851,4) (42.339,3) (44.467,3) (45.941,0) (47.393,7)
1.847,4 1.962,8 2.061,4 2.129,7 2.197,1
(31.493,2) (33.459,3) (35.141,0) (36.305,6) (37.453,6)
(69.497,2) (73.835,8) (77.546,8) (80.116,8) (82.650,2)
(4.632,1) (4.967,3) (5.264,4) (5.477,3) (5.694,1)
11.215,6 14.271,2 17.459,0 20.058,0 23.012,7
(1.365,7) (1.540,7) (1.722,3) (1.906,1) (2.082,0)
(1.253,0) (1.413,7) (1.580,3) (1.748,9) (1.910,2)
(2.618,7) (2.954,4) (3.302,6) (3.655,0) (3.992,2)
(250,0) (250,0) (250,0) (250,0) (250,0)
10.965,6 14.021,2 17.209,0 19.808,0 22.762,7
(113,0) (113,0) (113,0) (113,0) (113,0)
0,0 0,0 0,0 0,0 0,0
10.852,6 13.908,2 17.096,0 19.695,0 22.649,7
(1.342,0) (1.300,0) 58,1 269,4 561,0
0,0 0,0 0,0 0,0 0,0
0,0 0,0 0,0 0,0 0,0
9.510,6 12.608,2 17.154,2 19.964,4 23.210,7
(3.328,7) (4.412,9) (6.004,0) (6.987,5) (8.123,8)
6.181,9 8.195,3 11.150,2 12.976,9 15.087,0
% On Sales
2015 2016 2017 2018 2019
100,0% 100,0% 100,0% 100,0% 100,0%
3,3% 3,0% 2,8% 2,6% 2,5%
0,0% 0,0% 0,0% 0,0% 0,0%
0,3% 0,3% 0,3% 0,3% 0,2%
103,6% 103,3% 103,1% 102,9% 102,7%
-46,4% -45,1% -43,9% -43,0% -42,1%
-36,6% -35,6% -34,7% -34,0% -33,2%
-5,4% -5,3% -5,2% -5,1% -5,1%
13,0% 15,2% 17,2% 18,8% 20,4%
-1,6% -1,6% -1,7% -1,8% -1,8%
-1,5% -1,5% -1,6% -1,6% -1,7%
-0,3% -0,3% -0,2% -0,2% -0,2%
12,8% 14,9% 17,0% 18,5% 20,2%
-0,1% -0,1% -0,1% -0,1% -0,1%
0,0% 0,0% 0,0% 0,0% 0,0%
12,6% 14,8% 16,9% 18,4% 20,1%
-1,6% -1,4% 0,1% 0,3% 0,5%
0,0% 0,0% 0,0% 0,0% 0,0%
0,0% 0,0% 0,0% 0,0% 0,0%
11,1% 13,4% 16,9% 18,7% 20,6%
-3,9% -4,7% -5,9% -6,5% -7,2%
0,0% 0,0% 0,0% 0,0% 0,0%
7,2% 8,7% 11,0% 12,1% 13,4%
EXHIBIT7 Rigoni di Asiago: Forecast Income Statement
€ ths
Revenues
Change in goods
Costs for capitalised internal works
Grants related to income
Production value
Operating cost (personnel and D&A excluded)
EBITDA
Depreciation
Amortization of operating intangibles
Total D&A
Operating provisions
EBITA
Amortization of assets similar to goodwill
Balance of different gains/losses
EBIT
Net interest income (expense)
Exchange income (expenses)
EBT
Taxes
Net Income
Raw materials, consumables and merchandise
Change in raw materials
Other operating costs
Personnel costs
Adjustments to the carrying value of financial assets
32. Projection – Cash Flow (2015P-2019P)
32Babuin A., De Fecondo I., Magliani E., Sivero M.
2015 2016 2017 2018 2019
7.232,3 7.915,4 11.301,9 13.667,2 17.001,8
1.253,0 1.413,7 1.580,3 1.748,9 1.910,2
1.365,7 1.540,7 1.722,3 1.906,1 2.082,0
9.851,1 10.869,8 14.604,4 17.322,3 20.994,0
(266,7) (760,1) (647,1) (382,4) (698,4)
(4.297,2) (4.695,2) (5.064,9) (5.340,8) (5.632,8)
0,0 0,0 0,0 0,0 0,0
(4.563,9) (5.455,3) (5.712,0) (5.723,2) (6.331,1)
5.287,1 5.414,4 8.892,4 11.599,0 14.662,9
0,0 0,0 0,0 (0,0) 0,0
5.287,1 5.414,4 8.892,4 11.599,0 14.662,9
0,0 0,0 0,0 0,0 0,0
(113,0) (113,0) (113,0) (113,0) (113,0)
0,0 0,0 0,0 0,0 0,0
10.852,6 13.908,2 17.096,0 19.695,0 22.649,7
(404,5) (1.693,0) 96,8 846,7 2.362,9
10.335,0 12.102,2 17.079,8 20.428,8 24.899,6
15.622,2 17.516,7 25.972,2 32.027,8 39.562,5
(1.342,0) (1.300,0) 58,1 269,4 561,0
0,0 0,0 0,0 0,0 0,0
0,0 0,0 0,0 0,0 (0,0)
14.280,2 16.216,7 26.030,4 32.297,2 40.123,5
16.574,0 2.293,8 (13.922,9) (39.953,3) (72.250,4)
2.293,8 (13.922,9) (39.953,3) (72.250,4) (112.373,9)
% On Sales
2015 2016 2017 2018 2019
8,4% 8,4% 11,2% 12,8% 15,1%
1,5% 1,5% 1,6% 1,6% 1,7%
1,6% 1,6% 1,7% 1,8% 1,8%
11,5% 11,6% 14,4% 16,2% 18,6%
-0,3% -0,8% -0,6% -0,4% -0,6%
-5,0% -5,0% -5,0% -5,0% -5,0%
0,0% 0,0% 0,0% 0,0% 0,0%
-5,3% -5,8% -5,6% -5,4% -5,6%
6,2% 5,8% 8,8% 10,9% 13,0%
0,0% 0,0% 0,0% 0,0% 0,0%
6,2% 5,8% 8,8% 10,9% 13,0%
0,0% 0,0% 0,0% 0,0% 0,0%
-0,1% -0,1% -0,1% -0,1% -0,1%
0,0% 0,0% 0,0% 0,0% 0,0%
12,6% 14,8% 16,9% 18,4% 20,1%
-0,5% -1,8% 0,1% 0,8% 2,1%
12,0% 12,9% 16,9% 19,1% 22,1%
18,2% 18,7% 25,6% 30,0% 35,1%
-1,6% -1,4% 0,1% 0,3% 0,5%
0,0% 0,0% 0,0% 0,0% 0,0%
0,0% 0,0% 0,0% 0,0% 0,0%
16,6% 17,3% 25,7% 30,2% 35,6%
0,0% 0,0% 0,0% 0,0% 0,0%
19,3% 2,4% -13,7% -37,4% -64,1%
2,7% -14,8% -39,4% -67,6% -99,7%
EXHIBIT8 Rigoni di Asiago: Free Cash Flow Forecast
€ ths
NOPLAT
Amortization ofoperating intangibles
Depreciation
Grosscash flow
Change in operating working capital
Net capital expenditures
Change in other operating assets and liabilities
Grossinvestment
Free cash flow before goodwill and similar intangibles
Investments in goodwill and other intangibles
Free cash flow after goodwill and similar intangibles
Investments in non-operating assets
Amortization ofassets similar to goodwill
Balance ofdifferent gains/losses
EBIT
Non-operating taxes
Non-operating cash flow
Cash available to investors
Net financial result
Change in debt equivalents
Change in shareholders'equity
Decrease (increase)in net financial position
Beginning net financial position
Ending net financial position
33. Cost of Capital - WACC
33Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT9 Rigoni di Asiago: WACC calculation
Risk free rate* 1,78%
Country risk premium** 1,90%
Equity risk premium (ERP) 5,81%
Unlevered beta (βU) 0,90
Beta of debt (βD) 0,07
Debt/Equity (D/E) 136%
Beta of equity (βe) 1,08
Cost ofequity (Ke) 9,95%
Debt rating AA
Debt spread*** 1,15%
Cost ofdebt (Kd) 2,93%
Debt tax rate (Td) 33,00%
Kd(1 -Td) 1,96%
E/EV 42,4%
D/EV 57,6%
WACC 5,35%
Unlevered cost ofcapital (Ku) 5,91%
EV 471.574,2 DCF result
D 18.072,6 Actual NFP
*Risk free rate =Interest Rate Swap (IRS) Euro 10 years
**Country risk premium (CRP) =Weighted average CRP
***Assuming including the CRP
Rating Spread BetaDebt
AAA 0,65% 0,05
AA 1,15% 0,07
A 1,40% 0,10
BBB 2,50% 0,14
BB 4,25% 0,28
B 5,50% 0,40
C-CCC 8,75% 0,80
EXHIBIT11bisRigonidiAsiago:Betacoefficientestimation(31.12.2014)
MKTCAPandNFPin€mln
CompanyName
MKTCAP
Avg3m
MKTCAPAVG
5Y
NFPlast
available
NFPavg5y
D/E
AVG5Y
D/E
βLevered
(localIndex)
β MSCI
World
β
Unlevered
β
Debt
Debtrating
Comparablescompany
La Doria 365.000 225.000 138.232 121.788,5 9,0% 7,0% 1.18 1,00 0.93 0,14 BBB
ParmalatSpA 4.282.000,00 2.800.000,00 1.119.000,00 987.000,00 35.3% 26.1% 0.502 1.90 1.44 0.14 BBB
Nestle SA 102.157,00 96.244,00 15.425,00 12.746,00 13.2% 15.1% 0.722 1.37 1.22 0.07 AA
DANONE 39.557.000,00 35.750.000,00 7.799.000,00 6.503.000,00 18.2% 19.7% 0.57 1.34 1.15 0.10 A
Lotus Bakeries NV(ENXTBR:LOTB) 1.411.000,00 788.000,00 177.000,00 88.000,00 39% 90,13% 0,38 -0,32 0,03 0,14 BBB
GreenyardFoods NV 610.123.000,00 488.000,00 233.000,00 222.000,00 121% 67% 0,63 -0,32 0,478 0,14 BBB
Valsoia SpA(BIT:VLS) 186.950.000 104.000 (16.137) (61.000,0) 38,0% 197,0% 0,84 (0,32) 0,84 0,07 AA
Avg 120.398.594 5.750.178 1.352.217 1.124.791 25,00% 90,28% 61,67% 1,00% 44,93% 12,25%
AvgAdj 46.513.000 881.000 336.531 286.307 38,50% 78,57% 63,00% -32,00% 47,80% 14,00%
Median 186.950.000 104.000 (16.137) (61.000) 38,0% 197,0% 0,84 (0,32) 0,84 0,07
EXHIBIT10 Rigoni di Asiago: Rigoni di Asiago'sCRP calculation
CRP SALES 2014 % CRP*SALES
Italy 1,90% 85,00% 1,62%
Europe Countries 0,40% 12,80% 0,05%
North America (USA, Canada and Mexico)0,40% 1,70% 0,01%
Others 3,56% 0,50% 0,02%
Group (Total) 100,00% 1,67%
35. Valuation – Business Enterprise Value (DCF method)
35Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT 14 Rigoni di Asiago: Continuing value
2019E
Base for
CV
g 2,5%
WACC (continuing value) 5,4%
NOPLAT 17.001,8 17.426,9
Invested capital 54.664,8 56.031,4
ROIC 32,5% 31,9%
RONIC 31,9%
Continuing value (KVD formula) 562.732,1
Economic profit 14.200,3 14.500,1
PV (EPt+1) 270.829,1
PV (ΔEPt+2) 237.238,2
Continuing value of EP 508.067,4
Continuig value (EP formula) 562.732,1
FCF 16.060,3
Continuing value (FCF formula) 562.732,1
EXHIBIT 15 Rigoni di Asiago: DCF valuation
€ ths 2014 2015 2016 2017 2018 2019
Base for
CV
NOPLAT 7.232,3 7.915,4 11.301,9 13.667,2 17.001,8 17.426,9
Change in invested capital (1.945,2) (2.500,9) (2.409,4) (2.068,2) (2.339,0) (1.366,6)
Free cash flow 5.287,1 5.414,4 8.892,4 11.599,0 14.662,9 16.060,3
WACC 5,4% 5,4% 5,4% 5,4% 5,4%
Discount Factor 0,95 0,90 0,86 0,81 0,77
Present value of FCF 5.018,5 4.878,1 7.604,4 9.415,0 11.297,0
Present value of FCF2014-2018 38.213,0
Continuing value 433.557,8 562.732,1
Value of operations* 471.770,8
*Business enterprise value
36. Valuation – Business Enterprise Value (EP method) and Equity Value
36Babuin A., De Fecondo I., Magliani E., Sivero M.
EXHIBIT16 Rigoni di Asiago: EP valuation
€ ths
2014 2015 2016 2017 2018 2019 Base for
Economic profit 4.908,6 5.487,5 8.740,1 10.976,4 14.200,3 14.500,1
WACC 5,4% 5,4% 5,4% 5,4% 5,4%
Discount Factor 0,95 0,90 0,86 0,81 0,77
Present value ofEP 4.659,2 4.943,9 7.474,2 8.909,6 10.940,7
Present value ofEP2014-2018 36.927,5
Continuing value ofEP 391.441,3 508.067,4
Total economic value added 428.368,7
Invested capital 43.402,1
Value ofoperations 471.770,8
EXHIBIT17 Rigoni di Asiago: Value ofequity
€ ths
2014
Value ofoperations 471.770,8
Non-operating assets (196,6)
Enterprise Value 471.574,2
Net financial position and debt equivalents 18.072,6
Minority interest 0,0
Equity Value 453.501,6
