Emmi Ag · SIX:EMMN
Emmi — Investor Day (November 2013)
17 slides from Emmi's investor day presentation, Nov 5, 2013
Slide 1: The strategic milestones of Emmi's past and future success
The strategic milestones of Emmi’s past and future success Emmi Investor Day Urs Riedener, CEO Emmi Group Emmen, 5 November 2013 Emmi today Where we come from and where we want to go The decisive factors in the past five years The path to continue the success story 1
Slide 2: Facts & figures about Emmi
Facts & figures about Emmi Sales 2012 § CHF 2,981 million (2011: CHF 2,721 million) Net profit 2012* § CHF 90.3 million (2011: CHF 83.0 million) Net margin* § 3.0 % (2011: 3.0 %) Employees § 5,000 (31 December 2012) (FTE) Processed milk § 1,220 (2011: 1,017 million kilograms) in 2012 CEO § Urs Riede
Slide 3: Optimizing the production structure
Optimizing the production structure Most important production sites in Switzerland Suhr AG Frenkendorf BL Kaltbach LU Emmen LU Bischofszell TG (Milk, cheese, butter) (Cheese, dairy and fresh (Cow and sheep milk cheese) (Fresh products and cheese) (Organic dairy and fresh products) products) Dagmerse
Slide 4: Emmi – an impressive development story
Emmi today Where we come from and where we want to go The decisive factors in the past five years The path to continue the success story Emmi – an impressive development story Emmi – an impressive development story Continuous expansion process 2014 2020 2007 ? ? ? A-27 Venchiaredo ? ? AVH Dairy Trad
Slide 5: The relevant strategic pillars
The relevant strategic pillars Building on the proven three pillars Defending the home market Switzerland International growth Cost management Emmi Investor Day, 5 November 2013, Urs Riedener Page 9 Sales 2002 – 2012 and mid-term objective Steady growth with the mid-term objective of 50 / 50 (Swiss
Slide 6: Well-balanced international business
Well-balanced international business Local production share increased by recent acquisitions % Important acquisitions 100 75% 67% 64% 53% ca. 40% 2006: Trentinalatte (IT) 2009: Roth Cheese (USA) 2010: Cypress Grove Chèvre (USA) 50 Fromalp (CH) 2011: Onken (UK), A-27 (IT), Rutz Cheese (CH) 25% 33% 36
Slide 7: The market environment defining the strategy
The market environment defining the strategy Overview of future opportunities and challenges Value chain 1 Markets/ liberalisation 7 Investors § Competitiveness § Development of total § WTO agreements will be shareholder return made later than forecast § Swissness law 6 Employees 4 Clients 5 Consume
Slide 8: Penetrating existing markets with existing and new platforms
1. Penetrating existing markets with existing platforms Example: Kaltbach Visitor centre KALTBACH TV Print Friends of Kaltbach Online/ newsletter Tastings Launch of cheese counter Fairs and competitions Emmi Investor Day, 5 November 2013, Urs Riedener Page 15 2. Penetrating existing markets with new
Slide 9: Penetrating new markets with existing and new platforms
3. Penetrating new markets with existing platforms Example: Emmi Caffè Latte Product innovation Packaging Caramel Vanilla Mr. Big Longlife Spain Seasonal relaunch NY Edition Longlife Asia packaging Communication promotion Online New campaign game/website Loyalty programmes Sampling concepts Channels
Slide 10: The results: Positive development of brand platforms
The results: Positive development of brand platforms Focus on promising brands pays off, continued good development in 1HY2013 Indexed sales Million cups (from our plants) 100 International CH +12% 80 60 40 +8% 20 0 2009 2010 2011 2012 2008 2009 2010 2011 2012 CH Export Indexed sales - Launch target
Slide 11: Strategy assessment
Strategy assessment Strategy assessment Achievement of current strategy, impact for the upcoming strategy period Degree of achievement Impact on content of “Emmi 2020” § International share of sales § Continue to build on current strategy, which worked out well despite economic headwinds at least 50
Slide 12: Where Emmi wants to go
Where Emmi wants to go Main changes for upcoming strategy period 1 The two strategic pillars “International growth” and “Cost management” remain valid; with regard to “Switzerland”, however, we want to move on from our merely defensive approach and further “strengthen” our domestic market 2 Three bu
Slide 13: Organisational structure: Marketing
Organisational structure: Marketing, until 31 December 2013 New organisational Centralized, structure organisation Swiss focussed Chief Marketing Officer Marketing Manager Marketing Manager Marketing Manager Marketing Services Private Labels Emmi of Switzerland Caffè Latte, Cheese, Wellbeing Group B
Slide 14: Organisational structure: Marketing Switzerland
Organisational structure: Marketing Switzerland, from 1 January 2014 New organisational A team structure fully dedicated to the important home market Head of Marketing Switzerland Brand Manager Brand Manager Brand Manager Brand Manager Brand Manager Marketing Services Drinks Spoonable/ Specialty Pri
Slide 15: Country- and market-specific assessments of roles and ambitions
Country- and market-specific assessments of roles and ambitions Targeted procedure instead of random approach Market Parameters Assessment Growth alternatives Cypress Grove A-27 / Rachelli Tunisia Multiplication Margin Chile Organic versus USA1) Growth acquisitions Canada Market relevance Cash Organ
Slide 16: Possible acquisition routes
Possible acquisition routes Strong focus on existing international key markets Brand jewel Technology Market synergies/ Organic Regional/ leader/PL with efficiency completion of added value product range CHF 1,000 million Kaiku Onken international Bontà Possible Strategic/ Divina CHF 50 million Roth
Slide 17: It is crucial to differentiate Emmi from its competitors
It is crucial to differentiate Emmi from its competitors in the long run General conditions and key tenets of ambition General conditions and key tenets of ambition It is crucial to differentiate Emmi from its competitors in the long run Market / external view § Market consolidation among milk proce