Aryzta Ag · SIX:ARYN
Aryzta — IAWS Group — H1 2008 Earnings Presentation
24 slides from Aryzta's earnings presentation, Mar 10, 2008
Slide 1: 2008 Interim Results
2008 Interim Results IAWS Group, plc
Slide 2: Excellent Start to 2008
Excellent Start to 2008 Lifestyle Foods – Business Model Proves Robust 36.2% operating profit growth 10% underlying revenue growth in Food North America 10% underlying revenue growth in Food Europe 62% growth in free cash flow Origin 45.7% revenue growth 70.7% operating profit growth
Slide 3: Financial Highlights
IAWS Group, plc Financial Highlights Half Year Ended 31 January 2008
Slide 4: Excellent Revenue and Operating Profit Growth
Excellent Revenue and Operating Profit Growth 2008 2007 €’000 €’000 % Group revenue 1,127,473 838,456 34.5 *Group operating profit 82,209 57,342 43.4 **Share of associates and JV 13,382 12,998 3.0 *Operating profit incl. associates 95,591 70,340 35.9 Finance cost (17,132) (14,297) 19.8 *Pre tax prof
Slide 5: All Segments Driving Underlying Revenue Growth of 21.9%
All Segments Driving Underlying Revenue Growth of 21.9%... Food Food Total Food Origin Group Group Europe N. America Group revenue €351.4m €229.6m €581.0m €546.4m €1,127.4m Sales increase 10.6% 57.6% 25.4% 45.7% 34.5% Currency 2.0% 10.6% 4.7% 1.9% 3.4% Acquisitions (2.7%) (58.2%) (20.1%) (10.8%) (16
Slide 6: …and 35.9% Growth in Operating Profit
…and 35.9% Growth in Operating Profit 2008 2007 €’000 €’000 % Food Food Europe 34,726 30,948 12.2% Food North America 27,242 14,538 87.4% Total Food 61,968 45,486 36.2% Origin 20,241 11,856 70.7% TOTAL GROUP 82,209 57,342 43.4% Associates & JV operating profit (net of tax) Food Europe* 4,784 4,012 1
Slide 7: Return on Investment Trailing 12 months
Return on Investment Trailing 12 months Operating profit* Net assets €’000 €’000 ROI Food Europe** 78,335 577,124 13.6% Food North America 70,711 624,169 11.3% Total Food** 149,046 1,201,293 12.4% Origin*** 49,310 329,628 15.0% __________ GROUP 13.0% Includes investment in previously written off goo
Slide 8: 62% Growth in Free Cash Flow – Lifestyle Foods
62% Growth in Free Cash Flow – Lifestyle Foods 2008 2007 €’000 €’000 Cash flow from ordinary activities 80,426 59,400 + 35% Dividends received 8,359 7,854 Working capital movement (11,730) (12,248) Ongoing capital expenditure (5,256) (5,730) Interest and taxation (16,977) (15,471) Others 118 146 Fre
Slide 9: Robust Financial Position – Lifestyle Foods
Robust Financial Position – Lifestyle Foods 2008 €’000 Food New investments Bank Reconciliation – capital projects 57,950 Opening €407,878 – acquisitions 23,494 Free Cash (€54,940) Bank borrowing 418,446 Capital Projects €57,950 Acquisitions €23,494 Net debt: EBITDA 2.3x Forex (€19,024) Other €3,088
Slide 10: Lifestyle Foods: 5 Years of Excellent Growth
Lifestyle Foods* 5 Years of Excellent Growth 2004** 2005 2006 2007 2008*** CAGR Revenue (€m) 464 619 740 1,018 1,136 25.09% Operating Profit (€m) 48 65 77 108 125 26.69% Operating Profit Margin% 10.4% 10.5% 10.4% 10.6% 11.0% 1,136 1,018 740 464 619 125 108 65 77 48 2004 2005 2006 2007 2008 * Excludi
Slide 11: 2008 Builds on 10 Years of Solid Financial Performance by IAWS
2008 Builds on 10 Years of Solid Financial Performance by IAWS 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*** CAGR Group revenue (€m) 850 982 1,102 1,215 1,231 1,276 1,408 1,557 1,908 2,197 11.1% Total operating profit (€m)* ** 47.5 59.9 70.9 83.9 92.6 105.6 120.1 137.5 173.1 198.4 17.2% Free
Slide 12: Lifestyle Foods Profile of Business Model
Lifestyle Foods Profile of Business Model Market Conditions How we Succeed?
Slide 13: Lifestyle Food Group Geographic Reach
Lifestyle Food Group Geographic Reach Food Europe market* No. of consumers 126m GDP Per capita €29.9k GDP €3.8 trillion Employees > 2,200 Manufacturing 4 facilities DSD facilities 23 No. of DSD routes > 300 DSD customers > 50,000 Food North America market** No. of consumers 336m GDP per capita USD$4
Slide 14: Robust Business Model Continues to Deliver Growth
Robust Business Model Continues to Deliver Growth Consumer Demand Across all Business Channels Organic Revenue Growth Maintaining Consumer Relevance in a Changing Macro Environment
Slide 15: Maintaining Consumer Relevance in Changing Macro Environment
Maintaining Consumer Relevance in Changing Macro Environment Rising food prices Rising fuel costs Debt-to-income Falling home prices The Consumer Over-extension of credit Mortgage delinquency rates Mortgage rates Spending behaviour
Slide 16: Food to Go and Convenience Food – Non-Discretionary Consumer Spending
Food to Go and Convenience Food – Non-Discretionary Consumer Spending Entertainment 4.9% Clothes & Alcohol & Non services 3.9% Fruits Health tobacco 1.7% alcoholic & veg 1.2% care 5.7% drinks 0.7% Education 1.8% Meats 1.6% Insurance & Misc 7.1% Misc 1.8% pension 10.9% Bakery 0.6% Transport Food 12.6
Slide 17: Servicing all Food Channels – No Channel Dependency
Servicing all Food Channels – White Table Cloth No Channel Dependency Restaurant Convenience Retailing Upmarket Restaurant Over 200,000 customers delivered daily in different retail and The Consumer Casual Restaurant foodservice channels Foodservice within Retail Quick Service Restaurant
Slide 18: How we Succeed?
How we Succeed? Innovation Execution People & Process Strategic Manufacturing Unique Logistic Capability
Slide 19: Innovation & Execution – Drives Growth & Profitability
Innovation & Execution – Drives Growth & Profitability Always Fresh & Convenient Offering Superior Product & Concept Development Efficient Model – Minimise Waste – Minimise Labour – Maximise Return on Real Estate
Slide 20: People & Process
People & Process Customer Focused Consumer Relevant Drive Consumer Footfall
Slide 21: Strategic Manufacturing Locations
Strategic Manufacturing 12 Locations Modern & Efficient Speciality Bakeries & Innovation Centres World Class Technology
Slide 22: Unique Logistic Capability
Unique Logistic Capability 25 Million Meal Solutions Delivered Weekly Delivered to Over 200,000 Customers
Slide 23: Robust Business Model To Continue Strong Growth
Robust Business Model To Continue Strong Growth Consumer Relevant & Customer Focused Driving Consumer Footfall Through Innovation Flexible & Efficient Business Model Adaptable to Change Superior Cash Generation Well Positioned to Fuel Future Growth
Slide 24: IAWS Investor Relations
IAWS Investor Relations would be happy to facilitate any further information requests. Contact us: IAWS Investor Relations 151 Thomas Street Dublin 8 Ireland Contact name: Hilliard Lombard Phone: +353 1 612 1379 Fax: +353 1 612 1321 E-mail: investorrelations@iaws.com Website: www.iaws.com