M. Dias Branco Sa Industria E Comercio De Alimentos · BMFBOVESPA:MDIA3
M. Dias Branco Sa Industria E Comercio De Alimentos — M. Dias Branco — Investor Day (2018)
146 slides from M. Dias Branco Sa Industria E Comercio De Alimentos's investor day presentation, 2018
Slide 1: 2018
2018
Slide 2: Forward-looking statements
The statements contained in this document related to the management's views on the business of M. Dias Branco are merely trends and, as such, are based exclusively on management's perspective on the continuity of past and present actions, based on facts that have already occurred. These trends do no
Slide 3: Presenters
Presenters Geraldo Luciano Martim Ibrahim Newton Abe Fernando Bocchi Fabio Cefaly Vice - President Marketing Logistic R&D and New Business of Investiments Director Director Innovation and IR Director and Controllership Director 3
Slide 4: Opening
Opening Geraldo Luciano 4
Slide 5: Ten years of strong growth, investments and consistent results
Ten years of strong growth, investments and consistent results Net Revenue (R$ billion) Sales Volume (in thousand tons) EBITDA (R$ million) 5.4 1,836 966 1,075 376 2.2 2008 2017 2008 2017 2008 2017 Operational Cash Generation CAPEX (R$ million) ROIC (R$ million) 871 307 17.9% 16.5% 219 70 2008 2017
Slide 6: Growth of presence in cookies and crackers and pasta markets
... With growth of our presence in the cookies and crackers and pasta markets Cookies and Crackers - Brazil Market Pasta - Brazil Market Share Volume Share Volume 34.6% 38.2% 19.8% 21.9% 2008 3Q18 2008 3Q18 6
Slide 7: ...and an attractive investment to shareholders
...and an attractive investment to shareholders 7
Slide 8: What brought us here?
> —=—.-—:—sés/ ~“"]S ySntn Sovce _ What brought us here?
Slide 9: Portfolio of strong, recognized and admired brands
A portfolio of strong, recognized and admired brands both regionally and nationally 19 brands 7 brands with annual gross revenue > R$ 500 MM 9
Slide 10: Brands that occupy multiple price points
Brands that occupy multiple price points Cookies and Crackers Pasta Nielsen Price Market Nielsen Price Market Volume Index Volume(%) Index (%) Jan to Aug 2018 Jan to Aug 2018 4% 6% 166 132 95% 13 brands of 14 brands of 91% M. Dias M. Dias 54 58 1% 3% 10
Slide 11: Capacity to make good acquisitions
Capacity to make good acquisitions 2003 2008 2011 2012 2018 South / Southeast Northeast Northeast Northeast Southeast % Receita por Marca - 3T18 % Revenue by Brand - 3Q18 21% 16% 6%4%2% 40% 11% Outras marcas 60% 60% acquired brands marcas adquiridas Nota: Gross Revenue excluding discounts 11
Slide 12: Robust infrastructure and high level of vertical integration
Robust infrastructure and high level of vertical integration Verticalization Wheat Flour Verticalization Vegetable Fat (% total consumption) (% total consumption) 83.0% 99.7% 71.2% 48.9% 2008 3Q18 12 2008 3Q18
Slide 13: Disciplined execution and diversified client mix
Disciplined execution and diversified client mix Cash and Small Retail Wholesale Key Account Carry |20.5% |27.2% |23.7% and Regional Chains |21.7% Distributors Others |5.2% |1.7% Note: % of Gross Revenue excluding discounts 13
Slide 14: Constant Evolution of Corporate Governance
Constant Evolution of Corporate Governance Audit committee Board of Directors with composed 50% independent exclusively by members independet members Governance Sucession plan for Ethics committee and non-statutory Ethics channel executive officers 14
Slide 15: Stable Perspective
Solid financial situation Stable Perspective National Rating of Long Term “Fitch Ratings” | November 6 of 2018 15
Slide 16: What is our ambition?
What is our ambition? A Food Company with foreign presence 16
Slide 17: Marketing
| Marketing Martim Ibrahim 17
Slide 18: The Marketing Beliefs
The 3 Marketing Beliefs The consumer is the key decision maker MARKETING (MDB) Brand Sales Management Alignment Processes 18
Slide 19: The Consumer is the Key Decision maker
The Consumer is the Key Decision maker BELIEFS Which packaging is the best? Will this move strengthen the brand? Illustrative images Is this a good product name?... Which brand option is best for this new product? Illustrative images 19
Slide 20: Brand Management Processes
Brand Management Processes BELIEFS Brand positioning and contact points with 1 the consumer Strategic action areas (matrix P1 and P2) MDB 360º Platform (communication and activation of POS) aligned with brand positioning and brand sales goals 2 Opportunites to expand brand line (Brand Fit MDB) Oppor
Slide 21: Sales&marketing
Sales Alignment BELIEFS Sales&marketing 21
Slide 22: Marketing Landmarks
Marketing Landmarks Strategic MDB 2016-2021 Marketing Plan 2016/2017 Alignment Guidelines: Focus: Sales and Brand Strengthening People Lean and Productive Structure Position construction of each brand and initial execution phase Standardized Strategic Brand Management Model Strategy MDB 360ᵒ Routine
Slide 23: Brand Management Processes
Brand Management Processes Brand positioning and contact points 1 with the consumer External Supplier MDB Standard 23
Slide 24: Brand Positioning
Brand Positioning Why do we invest time and resources to define the POSITIONING of our brands? Well-defined Consistency and Strong Brands Positioning Optimization Consistency in consumer contact points: communication, packaging, social networks, etc. illustrative Images 24
Slide 25: Pilares de Posicionamento
PILARES DE POSICIONAMENTO Personalidade Observador Magico/ Revelador Otimista Fontes de Credibilidade Ingredientes culdadosamente selecionados Produtos feltos com a parte nobre do trigo/ Ingredientes nobres Moinhos proprios Beneficios Funcionais Produtos apetitosos: consisténcia Perfelta e aparéncia
Slide 26: Packaging Revitalization
Packaging Revitalization Previous Current Packaging Packaging 26
Slide 27: Packaging Revitalization
Packaging Revitalization Previous Current Packaging Packaging 27
Slide 28: Packaging Revitalization
Packaging Revitalization Previous Current Packaging Packaging 28
Slide 29: Packaging Revitalization
Packaging Revitalization Previous Current Packaging Packaging 29
Slide 30: Brand Management Processes
Brand Management Processes Strategic action areas (matrix P1 and P2) MDB 360º Platform (communication and activation of POS) aligned with brand positioning and brand sales goals 2 Opportunites to expand brand line (Brand Fit MDB) Opportunites for market share (Algoritmo MDB) 3 Sales and Marketing Pl
Slide 31: Geographical map of areas where we operate
Geographical map of areas where we operate (categories x states x priorities) High/Medium GEOGRAPHIC STRATEGY FINNA Relevance GEOGRAPHIC STRATEGY VITARELLA Low Relevance GEOGRAPHIC STRATEGY ADRIA Do not operate illustrative Images 31
Slide 32: Communication and activation plan at our points of sale
Communication and activation plan at our points of sale Traditional External Media Social Media Points of Sale Media 32
Slide 33: Plano de comunicação e ativação dentro do ponto de venda
Plano de comunicação e ativação dentro do ponto de venda Mídia Ponto de Mídia Externa Redes Sociais Tradicional Vendas 33
Slide 34: Plano de comunicação e ativação dentro do ponto de venda
Plano de comunicação e ativação dentro do ponto de venda Mídia Ponto de Mídia Externa Redes Sociais Tradicional Vendas 34
Slide 35: Social Media
Fk | Social Media 11:22 7 100% Gm + 11:18 “7 100% (mm) + @ facebook.com G Video G Facebook nr Abtifnelapp pacebook ABRIR a) adriaalimentos ¥ AVIDA ACONTECE —— nes VAY W 477 visualizagdes - Curtido por erikgalardi adriaalimentos Melhor do que preparar uma receita com macarrao Adria é descobrir que el
Slide 36: Communication and activation plan at our points of sales
Communication and activation plan at our points of sales Traditional External Media Social Media Points of Sale Media 36
Slide 37: Marketing at POS
Marketing at POS Merchandising material aligned with Activation calendar in all categories brand positioning 37
Slide 38: Opportunity for Product Line Expansions
Opportunity for Product Line Expansions Adria Plus Life – Functional World Starting from this study it’s very clear that checked packages can be divided in three groups: The one that don’t has potential to launch The one that has some potential The one that has high potential 38
Slide 39: Opportunity for Product Line Expansions
Opportunity for Product Line Expansions 360º Platform 360º Platform 39
Slide 40: Share Volume
Share Volume Total Cookies Pluslife Brazil (Retail + Cash) SHARE VOLUME 4.5 4.0 3.8 4.1 4.0 4.1 4.1 3.5 3.7 3.2 3.2 2.3 2.5 1.6 0.8 0.4 0.0 jun/17 jul/17 aug/17 sep/17 oct/17 nov/17 dec/17 jan/18 feb/18 mar/18 apr/18 may/18 jun/18 jul/18 aug/18 sep/18 oct/18 Fonte: Nielsen, Retail 2.0 40
Slide 41: Volume Algorithm
Volume Algorithm Criteria for Algorithm Creation CRITERIA CRITERIA LOW HIGH Share Volume Historical M. Dias +++ + Sales Volume Number of Product Competitors +++ + Segmentation ALGORITHM Strategy SALES PLAN Market Size + +++ Brand Architecture DROP RISE Regional Commercial Market Behavior + +++ Strat
Slide 42: Volume Algorithm Case: Grano Duro
Volume Algorithm Case: Grano Duro* CRITERIA Northeast 1 SHARE SHARE MARKET VOLUME Nº GROWTH PROJECTED 10 % GROWTH MDB YTD COMPETITORS ALGORITHM VOLUME 2018 Northeast 2 CO 6% 9.0% 4 149% 22.5% NE1 10% 15.4% 3 10% 16.9% 28 % NE2 4% 7.1% 4 28% 9.1% Mid-west SUDESTE 7% 9.2% 5 26% 11.6% 149 % Southeast S
Slide 43: The Strength of the Adria Brand
The Strength of the Adria Brand It is a high quality Emotional brand It is a brand that cares with details Endorsement It is a traditional brand Sofistication It is a innovator brand that launches constantly new products It is a brand that has selected ingredients Flavor It is a brand that has delic
Slide 44: Brand Evolution
Brand Evolution Key Indicators Total Cookies 4.4 2.8 33 3.3 3.4 4.2 3.9 4 Southeast (Retail + Cash) 0.3 0.1 0.1 Northeast (Retail + Cash) Source: Nielsen, Retail 2.0 44
Slide 45: Brand Evolution
Brand Evolution Key Indicators Total Pasta 14.4 12.1 12.1 13.1 13.1 10.6 11.2 12.2 8 7.3 Southeast (Retail + Cash) 0.4 0.1 0.1 0.1 0.1 0.2 0.1 0.1 Northeast (Retail + Cash) Source: Nielsen, Retail 2.0 45
Slide 46: Marketing Landmarks
Marketing Landmarks Strategic MDB 2016-2021 Marketing Plan 2016/2017 2018 Alignment Guidelines: Evolution Guidelines: Focus: Sales and Brand Brand Business Owners Strengthening Integrated expert team with a People Lean and Productive Structure brand strategy Position construction of each brand and i
Slide 47: We Faced a Difficult Business Scenario in 2018
We Faced a Difficult Business Scenario in 2018 Higher wheat costs Consumer inflation Flat consumption in 2018 47
Slide 48: Share volume quadrant matrix
1st Pricing Action Quadrant Matrix + Portfolio Champions Opportunity to maximize Monitor market Share volume profitability without affecting fluctuations Volume Strategic Launches Complexes Grow in volume to Products with high variability consolidate the product and/or capacity problems - Sales in V
Slide 49: 1st Pricing Action
1st Pricing Action Total Cookies Movements in 3Q18 (Brazil) Movements in the Cookies Market Movements in the Cookies Market Brazil (%) by Region (%) Total Cookies 5.30% Northeast 1 Cracker 6.87% 2.65% Maria/maisena 6.09% Northeast 2 Filled Cookies 4.50% Mid-West 3.35% Wafer 4.48% 4.21% Cookies 2.31%
Slide 50: 2nd Action
2nd Action Efficient Marketing Execution Platform Sales Volumes New Products Brand Memory Support 50
Slide 51: 1H2018 Sales Volume Support and Brand Memory
1H2018 Sales Volume Support and Brand Memory “Detalhes que te Fazem Sorrir” Sales Promotion Sales Brand Volumes Memory Support 51
Slide 52: 1H2018 Sales Volume Support and Brand Memory
1H2018 Sales Volume Support and Brand Memory “Detalhes que te Fazem Sorrir” Sales Promotion Sales Volumes Brand Memory Support 52
Slide 53: 2H2018 Sales Volume Support and Brand Memory
2H2018 Sales Volume Support and Brand Memory Rodrigo Faro Sales Promotion Sales Brand Volumes Support Memory 53
Slide 54: 2H2018 Sales Volume Support and Brand Memory
2H2018 Sales Volume Support and Brand Memory “Compre e Ganhe” Sales Brand “Compre e Ganhe” Promotion - Cookies Promotion - Toast Volumes Support Memory 54
Slide 55: Opportunity for Product Line Expansions
Opportunity for Product Line Expansions Plugados – Mundo Infantil New Brand Products Memory = + 55
Slide 56: Opportunity for Product Line Expansions
Opportunity for Product Line Expansions Plugados – Mundo Infantil New Brand Products Memory 56
Slide 57: tat
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Slide 58: Marketing 360º Platform Efficiency
Marketing 360º Platform Efficiency Delicitá New Brand Products Memory 360º Platform 58
Slide 59: En bossa
En bossa -.10Va A films 15” Delicita ‘ 18/07/2018 =_
Slide 60: Market Results
Market Results Share Volume – Delicitá Pernambuco New Brand Products Memory 45 Share Volume Pernambuco | Salted - Cookies and Crackers 12 months 40 35 29.8 27.9 27.3 22.3 30 24.6 25.8 23.6 22.8 22.9 22.2 25 20.5 19.1 20 17.5 22.8 21.7 19.4 17.4 19.7 15 20.2 8.5 16.9 10 6.3 6.9 7.4 5 0 nov/17 dec/17
Slide 61: Marketing 360º Platform Efficiency
Marketing 360º Platform Efficiency Delicitá New Brand Products Memory Competitor A Knows the brand Considers the brand 71% 63% Purchased (last 3 months) 53% 60% Frequently purchases the brand 65% 53% Prefers the brand 36% 1 13% Rejection 2% 3% Source: Ipsos 61
Slide 62: Chegou o Delicitá Cristal
F BISCOITO DOCE vn - GlgMet WLS Chegou o Delicitd Cristal. Umdocelancamento ™ da Vitarella.
Slide 63: Delicitá Cristal
Delicitá Cristal Launching New Brand Products Memory CONSUMER CLIENT GROUP OF CONSUMERS 63
Slide 64: We continue with the packaging revitalization
… We continue with the packaging revitalization Previous Current Packaging Packaging 64
Slide 65: We continue with the packaging revitalization
… We continue with the packaging revitalization Previous Current Packaging Packaging 65
Slide 66: Marketing Landmarks
Marketing Landmarks 2016-2021 Marketing Strategic Project 2016/2017 2018 2019/2021 Alignment Guidelines: Evolution Guidelines: Focus: Sales and Brand Brand Business Owners Strengthening Integrated expert team with a People Lean and Productive Structure Digital Protagonism brand strategy Position con
Slide 67: Principais Focos 2019/2020
Principais Focos 2019/2020 67
Slide 68: Digital Media Consumption is a Reality in Brazil
Digital Media Consumption is a Reality in Brazil Time spent on digital screens: 68% Younger individuals spend larger amounts of time on digital screens: 74% All age groups are connected to digital devices. Source: Kantar 68
Slide 69: Who wins the future
WHO WINS THE FUTURE ert E? —— e ~ _ 69 | _ : —
Slide 70: Why we Believe?
Why we Believe? In Summary... Why are we investing in the Digital front? SEGMENTATION PRECISION ROI POSITIONING MATERIALS REAL TIME INDICATOR 70
Slide 71: What are our main work fronts?
What are our main work fronts? Online Communication Proprietary measurement tools and results Digital Intelligence via Consumer Disruptive Projects 71
Slide 72: Online Communication
Online Communication Investment in digital media accounted for 43% of total communication investments in the second semester 72
Slide 73: Competitive Advantanges
Competitive Advantanges Gauge Each Dashboard shows a real time view of the data, which enables fast and efficient decision making. illustrative image 73
Slide 74: Competitive Advantages
Competitive Advantages Postmetria Each Dashboard shows a real time view of the data, which enables fast and efficient decision making. illustrative image 74
Slide 75: Digital Intelligence with Consumers
Digital Intelligence with Consumers IN GENERAL , THE PARTS PRESENTED MEDIUM HIGH RANGE IN FORTALEZA AND SALVADOR AND MEDIUM LOW IN RECIFE. THE ACTION IN THE POINT OF SALE THAT STAND OUT, PRESENTED IN FOR AND SAL RESULTS ABOVE OF OBSERVED 75
Slide 76: Disruptive Projects
Disruptive Projects VIEW MEASUREMENT: HOW IT WORKS ✓ Detect target YOUNG ADULTS 18 – 25 customer YEARS OLD MAPPED STORES ✓ Send ad to the target customer ✓ The target customer views the ad ✓ The target customer visits the store Deskontão - Imbiribeira ✓ The visit is measured 76
Slide 77: Disruptive Projects
— | Disruptive Projects ace: CLUBE TRELOSO @ AppStore =
Slide 78: Projetos Disruptivos
Projetos Disruptivos 78
Slide 79: What are we doing? Communication Design
What are we doing? Choosing the best partners to build and strengthen the brand Communication Design Branding 79
Slide 80: Packaging Revitalization
Packaging Revitalization Previous Current Packagings Packagings 80
Slide 81: Brand Architecture Project
Brand Architecture Project categories x states x priority High/Medium PIRAQUE GEOGRAPHICAL STRATEGY Relevance Low Relevance Do not operate illustrative image 81
Slide 82: Branding
Branding Brand pillars: Historical Roots Original Origin in Rio de Top of mind in Childhood memory Ionic Packaging Recipes Janeiro Rio de Janeiro At the lunch break children Designed by Lygia The São Luiz biscuit and The same factory for 65 Pape, they have the iconic products years aesthetic languag
Slide 83: Cookies and Crackers Branding
Branding Greater efficiency for national roll out Leverage the strong equity of the Piraquê brand The "what" defined embraces the whole portfolio New positioning Pyramid of Equity of the Piraquê Brand by Square of relevant brand in different cities Cookies and Crackers Trust and different Would reco
Slide 84: 84
84
Slide 85: “Vá de Piraquê” Sales Promotion
“Vá de Piraquê” Sales Promotion POS Products ISLE TOPS FINE PAPER WOBBLER TAKE ONE SHELF STRIP 85
Slide 86: “Vá de Piraquê” Sales Promotion
“Vá de Piraquê” Sales Promotion POS Application 86
Slide 87: Marketing Landmarks
Marketing Landmarks 2016-2021 Marketing Strategic Project 2016/2017 2018 2019/2021 Alignment Guidelines: Evolution Guidelines: Focus: Sales and Brand Brand Business Owners Strengthening Integrated expert team with a People Lean and Productive Structure Digital Protagonism brand strategy Position con
Slide 88: Key Focuses 2019/2020
Key Focuses 2019/2020 ✓ Maintain disciplines in the brand 2019/2020 building and positioning process ✓ Advance in the quality of the pricing process ✓ Increase marketing investments in “attack” areas ✓ Master the digital communication environment ✓ Maintain process of building marketing intelligence
Slide 89: Maintain discipline in building branding positioning
Maintain discipline in the process of building branding positioning Share Volume 4,2 4,4 3,9 4 Sudeste( Varejo + Cash) 2015 2016 2017 2018 (YTD) CONSUMER 89
Slide 90: More sofisticated Pricing
More sofisticated Pricing 90
Slide 91: Marketing Intelligence
Marketing Intelligence Snapcard Challenge: Measure the Return on Investment from Marketing Campaigns in Retail Sales Solution: OPTI1 Advance Pilot for Adria Biscuits Campaign Note1: Offline Purchase Tracking Insight 91
Slide 92: Marketing Intelligence
Marketing Intelligence Snapcard 1- Snapcart users access in- 2- Images of the pieces 3- Then user answered questions of choice if he had seen app search (video and ads) were the ad, where and a question for him to write which brand presented hiding the mark 92
Slide 93: Marketing Intelligence
Marketing Intelligence Snapcard 93
Slide 94: Commercial
Commercial Martim Ibrahim 94
Slide 95: Strategy of action
Strategy of action • MIX Expansion • Brand Strategy NATIONAL PROJECTS DEFENSE • Distribution Expansion • Expansion of • National brand strategy own team • Expansion of own team ATTACK GROWTH MARKET > 50% SHARE 25% to 50% VOLUME < 25% 95
Slide 96: Growth opportunities across Brazil
Growth opportunities across Brazil Cookies and Crackers Pasta Market in R$ Million R$6,625 R$ 11,183 R$6,163 R$ 2,287 R$ 4,188 R$ 2,274 Market in 618 755 445 388 541 278 Thousand Tons R$ 2,604 R$ 846 R$ 8,488 R$ 2,844 R$ 4,992 R$ 2,064 63.0 60.7 24.1 32.1 19.0 9.2 Defense Growth Attack Defense Growt
Slide 97: Growth opportunities in large pasta categories
...and also growth opportunities in large pasta categories Market in R$ Million R$ 1,066 R$ 415 R$ 2,129 R$ 2,081 R$ 3,057 262 27 380 356 180 Market in Thousand Tons R$ 480 R$ 1,260 R$ 1,609 R$ 374 R$ 2,755 55.0 40.8 22.7 10.0 9.9 Regular Grano Duro Semolina Semolina w/ Eggs Noodles Source: Nielsen,
Slide 98: Growth opportunities in cookies and crackers
...in cookies and crackers, growth opportunities in volume and high added value categories Market in R$ Million R$ 3,791 R$ 2,430 R$ 6,208 R$ 2,347 R$ 1,503 R$ 192 R$ 3,333 R$ 2,606 R$ 1,231 Market in 396 240 453 134 145 4 253 138 35 Thousand Tons R$ 1,509 R$ 1,203 R$ 3,824 R$ 1,858 R$ 1,432 R$ 122
Slide 99: Commercial Projects Officer
Commercial Projects Officer COMMERCIAL EXPANSION PROJECTS MULTI-BRAND SALES MANAGEMENT STANDARDIZATION PROJECT PROJECT 99
Slide 100: Commercial Expansion Project - PEC
Commercial Expansion Project - PEC Start Date: JUNE/2016 WHAT ARE WE AIMING FOR? Expected End Date: DEC/2020 INCREASE PRODUCTIVITY AND PROFITABILITY INCREASE SALES OF HIGHER VALUE ADDED PRODUCTS EXPAND CUSTOMER STANDARDIZE COMMERCIAL BASE WITH DIRECT PROCESSES ATTENTION IMPROVE SELLER AND PROMOTER R
Slide 101: Commercial Expansion Project - PEC
Commercial Expansion Project - PEC HOW WILL WE DO IT? Commercial Project Offices IDENTIFY RELEVANT PROJECTS AT THE BRAZIL LEVEL AUXILIARY COMMERCIAL MANAGERS IN PROJECT CONSTRUCTION CONSOLIDATE AND MANAGE DEADLINES AND DELIVERIES FACILITATE INTERFACE AND CREATE PROJECT PARTNERS CREATE A PORTFOLIO OF
Slide 102: Commercial Expansion Project - PEC
Commercial Expansion Project - PEC WHAT WAS DONE IN 2017 LAUNCHING OF THE BRAND INTRODUCTION IN NATIONAL TERRITORY: CASH & CARRY AND 2014 – 2017 KEY ACCOUNT GROWTH OF REPRESENTATIVENESS IN PROJECT MANAGEMENT GREATER VALUE ADDED MULTIMEDIA 329% PRODUCTS LEVEL OF SELLERS +1,000 TRAINED IN THE TEAM DEV
Slide 103: Commercial Expansion Project - PEC
Commercial Expansion Project - PEC WHAT DO WE EXPECT FOR 2018? GROW IN SALES OF GREATER VALUE ADDED PRODUCTS IMPROVE PROFITABILITY: ACTIONS FOCUSED ON NATIONALIZE THE BRANDS PRODUCTIVITY AND PRICE ADRIA AND VITARELLA ASSERTIVITY OF THE SALES FORECAST DECENTRALIZE SALES INCREASE CLIENTS BASE TAKE ADV
Slide 104: Commercial Projects Officer
Commercial Projects Officer MULTI-BRAND MANAGEMENT PROJECT COMMERCIAL SALES EXPANSION STANDARDIZATION PROJECT PROJECT 104
Slide 105: Multi-brand Management Project
Multi-brand Management Project BEFORE THE PROJECT... MANAGEMENT 105
Slide 106: Multi-brand Management Project
Multi-brand Management Project ...AFTER THE PROJECT UNIT MANAGER NORTHEAST I NORTHEAST II SOUTH SOUTHEAST MID-WEST MARGARINE AND VEG. SHORTENING WHEAT FLOUR 106
Slide 107: Multi-brand Management Project
Multi-brand Management Project WHAT WE ACHIEVED Start Date: OCT/2015 End Date: DEC/2016 OPTIMIZATION OF LOGÍSTIC COSTS INCREASE IN COVERAGE OF LESS EXPRESSIVE BRANDS PORTFOLIO MANAGEMENT BY REGION AND EFFECTIVE CHANNEL REDUCE COSTS IMPROVE MARGINS BALANCE MARKET PRICES OPTIMIZE INVESTMENTS IN POS 10
Slide 108: Multi-brand Management Project results
Multi-brand Management Project OUR RESULTS WERE... TOTAL ANNUAL SAVINGS R$ 26MM OWN TEAM REPRESENTATIVES HEADCOUNT ANNUAL SAVINGS REDUCTION OF 348 R$ 2.8MM ANNUAL SAVINGS R$ 23.2MM 108
Slide 109: Commercial Projects Officer
Commercial Projects Officer SALES STANDARDIZATION PROJECT COMMERCIAL MULTI-BRAND EXPANSION MANAGEMENT PROJECT PROJECT 109
Slide 110: Sales Standardization Process
Sales Standardization Process Start Date: JUN/2018 WHAT DO WE INTEND? Expected End Date: JUN/2019 RECOGNIZED AS THE BEST BUSINESS PARTNER M. DIAS MARKET BRANCO High performance operation, standardized and aligned with the company’s strategic objectives. 110
Slide 111: Sales Standardization Process
Sales Standardization Process ACTION FRONTS Channel Team Dimensioning Study Team Dimensioning and Segmentation and POS Segmentation SALES POS Methods and Methods and Processes Processes G.E.M Sales Team Merchandising Routines M. Dias Execution Guideline Team Routines 1 Indicators and BSC, indicators
Slide 112: Sales Standardization Process
Sales Standardization Process WHAT RESULTS DO WE EXPECT? STANDARDIZATION AND TRACEABILITY OF SALES AND TRADE ROUTINES + QUALITY TEAMS FORMED BY OBJECTIVE AND STRATEGIC CRITERIA + PRODUCTIVITY/ROI + AUDITING IMPLEMENTATION MODEL TRANSPARENCY METHODS AND INDICATORS TO MONITOR THE IMPLEMENTATION + MANA
Slide 113: Logistics
| Logistics Newton Abe 113
Slide 114: How to plan the best logistics operation in Brazil?
How to plan the best logistics operation in Brazil? SUPPLIER PRODUCTION STORAGE DELIVERY CLIENTS ▪ 400 Suppliers ▪ 15 Facilities ▪ 38 Distr. ▪ +190,000 ▪ +60,000 Clients ▪ +2,000 Items ▪1,403 Products Centers shipments ▪ 10 KA3 ▪ 100 MM ▪ 145 Lines ▪170,000 Positions ▪ Own fleet ▪ 6 C&A4 Inventory ▪
Slide 115: Supply Chain Strategy
Supply Chain Strategy Strategic Adequate Service Level and Cost Control Tactical - Planning Customer Service and Planning Operations Distribution Centers and Transport Operations 115
Slide 116: Strategic Leverages
Strategic Leverages Service Levels Controlled Costs Productivity Delivery within the Storage Increased Agreed Period Processes Vehicle Occupancy Increase of Transportation Highest Number of Availability Processes Deliveries per Route Order Cycle Working Capital Reduced Sales Management Loss Preventi
Slide 117: What was done in 2018?
What was done in 2018? Strategic Map Operations • Logistics Operations Planning Focus on Productivity • Supply Chain • Transport Operations Organizational Structure Planning Focus on Cost Focus on Flexibility and Reduction • Corporate Structure Assertiveness Focus on Strategy Definition • S&OP1 Focu
Slide 118: Connection Project – The Best Logistics in Brazil
Connection Project – The Best Logistics in Brazil Returns* – MM R$ Results -17% -17% ▪ Implementation of S&OP ▪ Definition of the Inventory Policy 40,9 30,3 25,1 ▪ Creation of Service Level ▪ Implementation of the Production 2016 2017 2018 Wheel ▪ Management of Logistics Operations Days’ Supply – Fi
Slide 119: Network Project
Network Project The Best Logistics in Brazil 1. Mapping of Demand 2. Operational Mapping 3. Fiscal Mapping Objective Maximize Contribution Margin How 4. Demand Modeling 5. Operational Modeling 6. Fiscal Modeling Integrated optimization between operations and fiscal areas Scope 7. Model Optimization
Slide 120: Challenges for 2019
Challenges for 2019 ✓ Increasing Freight Costs ✓ Operational Integration of Piraquê ✓ Reduction in Total Delivery Time ✓ “The Best Logistics in Brazil” Program 120
Slide 121: Increasing Freight Costs
Increasing Freight Costs Distance Reduction - Segmentation of the Network Transportation Strategy Industrial Flexibility Logistics Network vs. Distance vs. Drop Size Production vs. Consumption Centers Make or Buy Consumption Centers 121
Slide 122: Operational Integration of Piraquê
Operational Integration of Piraquê AP Integration Strategy RR ✓ Optimization and Standardization AM PA MA CE RN ✓ Product Nationalization PB PI AC TO PE AL ✓ Synergies of Operations RO SE BA MT ✓ Verticalization of Vegetable Shortening GO MG MS ES SP RJ PR SC RS 122
Slide 123: Reduction in Total Delivery Time
Reduction in Total Delivery Time Client Flexibility Order Cycle Segmentation and Agility 123
Slide 124: “The Best Logistics in Brazil” Program
“The Best Logistics in Brazil” Program MDB Goals Service Level Costs Produtivity Logistic Internal Transport Technological People Planning Operations Efficiency Infrastructure Development Processes People 124
Slide 125: Research, Development and Innovation
Research, Development and Innovation Fernando Bocchi 125
Slide 126: Our Mission
Our Mission To develop healthy, tasty products that are recognized for their quality, through the research and execution of technological solutions and innovation, meeting all technical regulations in an ethical way to achieve consumer trust and acceptance. 126
Slide 127: Research, Development and Innovation management
Research, Development and Innovation management Innovation Management Development Research Sensory Analysis Regulatory Matters R&D System 127
Slide 128: How we generate value
How we generate value Delivering innovative products Managing technological know-how and applying it to manufacturing plants, laboratories and pilot plants Identifying technological government and market trends Exploring opportunities inside and outside M Dias Branco and applying them to the busines
Slide 129: Innovation Action Fronts
Innovation Action Fronts RADAR PORTFOLIO MANAGEMENT “R” as in RESEARCH OPEN INNO WITH STARTUPS 129
Slide 130: Innovation Radar (since 2016)
Innovation Radar (since 2016) Healthy Indulgence Nutrition and Tasty and Experience Convenience Affordable 130
Slide 131: Some Recent Highlights
Some Recent Highlights 2017: 36 new products 2018: 23 new products 2017 2018 2018 Healthy and Convenience Indulgence and Affordable Healthy and Affordable Tasty Experience Tasty 2018 2018 2018 Affordable Convenience Indulgence and Convenience Indulgence and Experience Experience 131
Slide 132: Portfolio Management
Portfolio Management Class 5: Everything new Class 4: New to M. Dias Branco Class 3: Product line extension Class 2: Improvement /Saving Class 1: Transfer 132
Slide 133: Innovation index
Innovation index - Participation in the last 24 months in the raw income of the company. Raw income without industrial. Innovation Index 4,0% 3.6% 3,5% 3.1% 3,0% 2,5% Ano 2,0% 1,5% 1,0% 1.1% 0,5% 0.3% 0,0% 2014 2015 2016 2017 133
Slide 134: “R” as in Research
“R” as in Research Established strategic alliances with research centers, universities and suppliers for knowledge generation and development of new projects. 134
Slide 135: Regulatory Heat Map
Regulatory Heat Map (since 2016) Whole Wheat Flour Trans Fat Nutrition Labeling Sugar Reduction illustrative image 135
Slide 136: Nutritional Guide (since 2018)
Nutritional Guide (since 2018) II. SPECIFIC I. NUTRIENTS III. CLASSIFICATION ATTRIBUTES PROVIDE PRODUCTS WITH POSITIVE BEST FOR YOU TOTAL SUGARS FEATURES. I.E.: BETTER FOR YOU SATURATED FAT SOURCE OF FIBERS, SODIUM WHOLE GRAIN GOOD FOR YOU CEREALS, GRAINS, SEEDS, ETC... JOY FOR YOU JOY GOOD BETTER B
Slide 137: How R&D helps in Productive Efficiency?
How R&D helps in Productive Efficiency? • Technical support for manufacturing and supply • Process Improvement • Improvements in raw and packaging materials aimed at performance Saving* (R$ million) 30 25,2 25 20 18,09 15,5 15 *Current year results of last 24 10 months projects. 5 0 2016 2017 2018 1
Slide 138: New sensorial laboratory (since 2018)
New sensorial laboratory (since 2018) • Apply sensory analysis with the inside and outside public • Sensory capacityof the teams in every M Dias Branco unit • Establish of sensory profile of finished products 138
Slide 139: Silicon valley mission and Brazillian Ecosystem (2017)
Silicon valley mission and Brazillian Ecosystem (2017) 139
Slide 140: Program of connection with Startups
Germinating business, nurturing the future • Program of connection with Startups Develop the current business New opportunity INGREDIENTS TEAM NEW BUSINESSES COMMUNICATION PACKAGING TRADE MARKETING MEDIA LOYALTY 140
Slide 141: Germinating business, nurturing the future
Germinating business, nurturing the future 178 Ingredients and Packaging New Business Marketing and Trade Marketing STARTUPS APPLIED TO THE PROGRAM 11 STARTUPS WERE APPROVED FOR THE PILOT PHASE 141
Slide 142: Strategy and Opportunities
Strategy and Opportunities Fabio Cefaly 142
Slide 143: Export
Export 2018 ▪ Pesence in 5 continents (36 countries) ▪ Development of new products and own brands PERSPECTIVES Consolidation in Sell with strategic Piraquê’s markets brand Entrance in new countries 143 143
Slide 144: Constant Evolution of Social, Environmental and Corporate Governance
Constant Evolution of Social, Environmental and Corporate Governance Areas of expertise 144
Slide 145: Growth strategy with attractive profitability and return for shareholders
Growth strategy with attractive profitability and return for shareholders Growth Drivers ▪ Geographies and categories little explored in the core business ▪ Entry into new categories ▪ International markets expansion Efficiency Drivers ▪ Logistic and production footprint optimization ▪ New business
Slide 146: Thank you!
—* Thank you!