2. In a nutshell
A leading European organic food player
โข Own operations in Benelux, France, Germany, Italy, UK + export operations
โข Pioneering brands | indulgence & nutritional
โข Well-managed supply chain | Strong focus on quality, innovations, brands
โข Factories in UK (tea), Germany (vegetable spreads) (cereals/bars/spreads/honey) and Italy
(soy/non-dairy drinks)
โข Turnover โฌ711mln (2012) | 2,064 employees (on average)
Organic food market
โข Attractive part of food market | growing | low per capita consumption | โฌ22bn market
โข No colouring/flavouring | GMO-free | no artificial fertilisers | animal health
โข Unique certification system | grown and processed according to EU regulation
2
3. 3
Portfolio approach ๏ฎ focus on organic food
33
2009 2012
โฌ711m
Focus and investment into core brands &
categories in organic in Europe
Grocery
HFS
IZICO
ABC
Others
โฌ1585m
4. 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
4
5. 5
Nutrition and food issues Transparency
Sustainability Weight and obesity
ORGANIC
6. Our vision is 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 growth
โข Grow core brands
โข Grow core categories
โข Build strongholds in new markets
โข Country specific growth strategies
โข Launch fewer, bigger, better
innovations
โข Execute acquisitions shortlist
Profitabilty
improvement
โข Central sourcing savings
โข Pricing strategies towards
customers
โข Improve operational excellence
with SAP
โข Filling own factories
Enablers
โข Improve talent performance
management / building
connected leadership
โข Simplify how we are conducting
business
โข 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. Transformation programme โWessanen 2015โ
1. Create more focus on our activities
โข Reduction of approx. 300 FTE
โข Expected one-off costs โฌ(21) mln cash and โฌ(7.0) mln non-cash impairment Deurne plant
โข Expected savings โฌ15 mln p.a. from 2014 onwards
3. Addressing low-yielding and non-performing activities
โข Strongly reducing German grocery presence, changing go-to-market approach
โข Focus in Italian grocery on non-dairy (soy)
2. Reduce complexity and simplify processes
โข Cutting the tail / reducing number of SKUs at
โ Dutch brands; French HFS brands; Export
โข Centralising quality department
โข In the Netherlands, focus on one franchise formula (Natuurwinkel), to end GooodyFooods formula
โข Supply chain to manage our plants as of 2013 and to streamline processes
โข Further increased focus on core brands and core categories
โข Expansion number of CBTs (category brand teams)
โข Split in branded and distribution organisation
โ Benelux operations
โ French HFS operations
9. Net debt / Leverage ratio
0
25
50
75
100
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
0
1
2
3
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
9
Net debt
Leverage ratio
โฌ63 mln
1.7x
In โฌ mln
10. A very sound financial position
In โฌ mln Mar 13 Dec 12 *
Restated
Non-current assets 152.7 154.5
Current assets 214.4 183.4
TOTAL ASSETS 367.1 337.9
10
In โฌ mln Mar 13 Dec 12 *
Restated
Dec 12
Reported
Total equity 115.8 110.8 101.6
Non-current liabilities 20.3 81.0 90.2
Current liabilities 231.0 146.1 146.1
Total liabilities 251.3 227.1 236.3
TOTAL EQUITY & LIABILITIES 367.1 337.9 337.9
*Restated for IAS19R
11. Q1 2013 key figures
In โฌ mln Q1 2013 Q1 2012
Revenue 172.5 170.6
Autonomous growth (1.0)%
Normalised EBIT 9.3 2.9
As % of revenue 5.4% 1.7%
Exceptional costs (1.1) -
EBIT 8.2 2.9
Net result, attributable to equity holders 5.1 1.7
Earnings per share (EPS) 0.07 0.02
11
EBIT improvement
Gross profit ๏ญ
Operating costs ๏ฏ
Marketing spending ๏ฎ
12. Q1 2013 performance
โข We have to cope with uncertain economic times, deteriorating consumer
confidence and increased unemployment
โข Consumer appreciation for healthy and nutritional food is continuously growing
โ Consumers are gradually incorporating more of a sustainable agenda when
making food purchases
โ Consumers show growing engagement with organic food
โข Execution of โWessanen 2015โ running smoothly
โ A transformational programme to become a more profitable company
โ โฌ(0.9) mln of costs incurred; cumulative costs โฌ(17.2) mln
โ Total costs (with a cash effect) of โฌ(21) mln expected
โ Savings of โฌ15 mln expected from 2014 onwards
12
13. Q1 2013 performance (contโd)
โข Grocery continues to show healthy performance
โ Most core categories showing growth
โ Our brands (e.g. Bjorg, Clipper, Whole Earth) performing well
โ Volume impacted by
โข Lower private label sales in UK and Italy
โข Withdrawal from low-yielding German and Italian grocery activities
โข Positive signs visible at Health Food Stores, such as
โ First indications of restructuring and refocus Bonneterre encouraging
โ Allos growing sales, benefiting from its new positioning and innovations
โ Benelux showing growth at existing formula and independent stores
โ The Benelux operations to be split in branded and wholesale/distribution
businesses to increase focus
13
Q1 revenue
30%
41%
13%
16%
Grocery HFS IZICO ABC
14. Strong growth driven by
โข Brand support (TV/360ยฐ)
โข In-store & consumer activation
โข Innovation
14
15. โข First TV commercials since 2007
โข A challenger to all conventional food brands
16. 16
โข 11% growth in the UK
โข Integration in UK on plan
โข Roll-out Europe
- France: Q1
- Netherlands: Q2
- Germany: Q3
18. France Alter Eco โ leading in French fairtrade
โข Sale and purchase agreement signed
โ Closing expected early June, depending on satisfaction certain closing conditions
โข France Alter Eco
โ Paris-based
โ Revenue 2012 of โฌ16.5 mln
โ Organic and fair trade products such as chocolate, coffee, tea and juices
โ Developed strong partnerships with farmersโ cooperatives
โ Around 100 products
โข Marketed in grocery, HFS and out-of-home channels
โ Multiple paid 0.2-0.3x revenue
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19. Q1 2013 performance (contโd)
โข IZICO making good progress in becoming one company
โ Deurne plant has been closed per end of March
โ New structure and roles at various departments are being implemented
โ Autonomous revenue up: retail growing, out-of-home impacted by sluggish demand
โ Beckers and Bicky performing in line with expectations
โข At ABC , Dailyโs maintained its market share, despite lower volumes
โ Pouches line expanded with 6 new flavours
โข 3x Tropical and 3x light, now totalling 13
โ Little Hug continues to grow, gaining market share
โ New campaign launched
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22. Attractiveness organic food markets
European organic food an attractive, growing segment
โ Size โฌ21 bn; 2011 growth around 6%
โ <3% of total European food market
Increasing consumer appreciation
Still low per capita consumption
โ European Union โฌ30 per annum
Consumers increasingly convinced of benefits of organic food
regarding health, taste and environment
Grocery and Health Food Stores channels developing at
different growth path
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23. Wessanen business principles
โข Compliance with laws: being a responsible partner in society,
acting with integrity towards all stakeholders and others who
can be affected by our activities
โข Environment: in line with commitment to sustainable
development, we will do all that is reasonable and practicable to
minimise adverse effects on the environment
โข Product safety: we aim at all times to supply safe products
and services
โข Free market competition: we support free market
competition as basis of conducting business; we observe
applicable competition laws and regulations
โข 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
โข 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
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We expect suppliers and business partners to comply with the above principles
25. Palm oil - member RSPO
โข Palm oil is important, versatile raw material for food
โ Only be cultivated in tropical areas of Asia, Africa and South America
โ Concerns that demand causing expansion of plantations into eco-sensitive areas
โข Since March 2011 Member of Roundtable on Sustainable Palm Oil (RSPO)
โ Global multi-stakeholder initiative
โ Encouraging sustainable production/use palm oil
โ Wessanen commits to organisationโs objectives
โข In 2011, we developed policy to govern palm oil sourcing and guidelines for implementation in
partnership with our suppliers
โข Committed to switching palm oil to RSPO certified sustainable palm oil during 2012-13
โ RSPO certified segregated palm oil for organic
โ GREEN PALM certificates for conventional
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26. Organic Expertise Centre (OEC)
โข Establishment internal expertise center - named OEC - in 2010
๏ถ To stimulate exchange of knowledge / experience that is widely available
within Wessanen
๏ถ To educate and inspire our internal / external stakeholders in organic values
โข Specialists join forces and work on pan-European issues
โข To legitimise our position in organic world by championing the organic case
โข Focal areas will be:
๏ถ Training (incl. training package for newcomers)
๏ถ Knowledge building by teaming up with external researchers and experts
๏ถ Lobbying to promote organic food
๏ถ Communication for more general awareness / knowledge of organic food
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27. A long and rich history
๏ถ 1765 - Incorporated around river De Zaan
โ Adriaan Wessanen started to trade in mustard, canary and other seeds
๏ถ Around 1910 introducing first consumer products such as
oatmeal and cocoa
๏ถ 1913 - Distinguished title Royal (99 years !)
๏ถ 1959 - Listed on Euronext Amsterdam
๏ถ 2009 - Strategic reorientation ๏ฎ focus on organic food in Europe
๏ถ 2012 - To make our organic brands most desired in Europe
โข 2015 - Marking 250th anniversary of Wessanen
27
30. Revenue breakdown per segment
52,8
53,9
30
22,5
24,7
(1.5)%
Health Food Stores
๏จ Autonomous third party revenue growth
70,9
66,4
1.7%
Grocery
๏จ Autonomous third party revenue growth
28,2
27,8
1.4%
IZICO
๏จ Autonomous third party revenue growth
(9.9)%
ABC
๏จ Autonomous third party revenue growth
31. Financials Q1 / guidance 2013
Financials Q1
โข Net financing costs โฌ(0.4) mln Q1 2012: โฌ(0.6) mln (restated)
โข Income tax expenses โฌ(2.7) mln Q1 2012: โฌ(0.8) mln
Guidance FY2013
โข Net financing costs โฌ(2-3) mln
โข Effective tax rate around 35%
โข Capex โฌ8-10 mln
โข Depreciation and amortisation โฌ14 mln
โข Non-allocated expenses (incl. corporate) โฌ11 mln
Revised IAS 19 โ impact on FY 2012 / yearend 2012
โข โฌ0.5 mln higher personnel expenses
โข โฌ1.1 mln lower net financing costs
โข Equally distributed over all four quarters
โข Equity (โOCIโ) โฌ9.0 mln higher as at yearend 2012
31