Aryzta Ag · SIX:ARYN

Aryzta — Shareholder Meeting (December 2012)

32 slides from Aryzta's shareholder meeting presentation, Dec 11, 2012

  1. Slide 1: 2012 AGM

    ARYZTA AG 2012 AGM 11 December 2012

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement This document contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking

  3. Slide 3: Introduction by CEO – Owen Killian

    Introduction by CEO – Owen Killian – Business Overview – Development of business since creation of ARYZTA – Financial Review & FY 2012 Summary (Patrick McEniff, CFO/COO) 3 © ARYZTA, December 2012

  4. Slide 4: ARYZTA Today

    ARYZTA Today – Global leader in speciality bakery – Primary listing in Zurich (SIX: ARYN), and secondary listing in Dublin (ISE: YZA) Reporting Segments ARYZTA AG Food Europe Food North America Food Rest of World Origin Enterprises plc 95 million shares (68.8 % Holding) Listed on the AIM in London G

  5. Slide 5: Origin Enterprises plc – 68.8% Holding

    Origin Enterprises plc – 68.8% Holding July 2012 (EUR m) Change Revenue 1,340.0 Ï 3.1% Underlying fully diluted EPS 45.16c Ï 4.2% Market Cap1 607 Market Value of ARYZTA holding1 418 – ARYZTA shareholding diluted to 68.8% from 71.4% due to vesting of Origin LTIP – Accounted for 16% of ARYZTA Group EB

  6. Slide 6: ARYZTA Food Group – Repositioning Progress FY 2008 – FY 2012

    ARYZTA Food Group – Repositioning Progress FY 2008 – FY 2012 2008 (pro forma) 1 2012 (EUR 1.6bn) (EUR 2.9bn) Food Rest of World Food Rest of World 1% Food North America 8% Food North America 28% 48% Geographic Geographic Mix Mix Food Europe Food Europe 71% 44% Quick Serve Restaurant 4% Large Retail

  7. Slide 7: Food Group – Global Footprint

    Food Group – Global Footprint Revenue EUR 2.9bn Food North America 48% Food Europe 44% Food Rest of World 8% EBITA EUR 375m Food North America 47% Food Europe 45% Food Rest of World 50 Bakeries and Kitchens 103 Distribution Centres 8% 19 Countries 7 © ARYZTA, December 2012

  8. Slide 8: Food Europe

    Food Europe Year ended 31 July 2012 16 Bakeries and Kitchens 37 Distribution Centres 10 Countries Revenue €1.3bn, +7.5% Underlying revenue (1.0)% Acquisitions & disposals +7.0% Currency +1.5% EBITA €169.5m, +13.7% Positive EBITA margin expansion of 70bps to 13.3% – Robust performance in most challen

  9. Slide 9: Food North America

    Food North America Year ended 31 July 2012 24 Bakeries and Kitchens 53 Distribution Centres 2 Countries Revenue €1.4bn, +13.2% Underlying revenue +7.0% Acquisitions & disposals +2.1% Currency +4.1% EBITA €176.3m, +18.6% Positive EBITA margin expansion of 50bps to 12.8% Hawaii – Revenue growth largel

  10. Slide 10: Food Rest of World

    Food Rest of World Year ended 31 July 2012 10 Bakeries and Kitchens 13 Distribution Centres 7 Countries Revenue €221.5m, +23.0% Underlying revenue +13.0% Acquisitions & disposals +7.0% Currency +3.0% EBITA €29.0m, +18.0% EBITA margin 13.1% (down from 13.7%) – Revenue and EBITA growth trends remain d

  11. Slide 11: Food Group Underlying Revenue Growth

    Food Group Underlying Revenue Growth Quarterly Underlying Revenue Growth Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Food Europe (2.4)% 0.7% 2.9% 2.3% 1.2% (1.8)% (2.6)% (0.7)% Food North America (1.4)% 5.9% 8.9% 7.1% 6.0% 8.9% 6.0% 7.2% Food Rest of World 18.5% 18.3% 6.2% 21.3%

  12. Slide 12: Food Group Underlying Revenue Growth

    Food Group Underlying Revenue Growth Channel and geographic rebalancing 25.0% 20.0% High dependency on Independents and 15.0% Europe (especially Channel and geographic ROI & UK) rebalancing 10.0% 5.0% 0.0% (5.0%) (10.0%) (15.0%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 201

  13. Slide 13: Global Macro-Economic Conditions to Moderately Improve at a Slow Pace at Best

    Global Macro-Economic Conditions to Moderately Improve at a Slow Pace at Best Real GDP Growth by Country1 Inflation by Country1 (2007-15F) Percent change (2007-15F) Percent change 7 15 6 PPT Change PPT Change 5 2007 -11 2011-15 F 2007 -11 2011 -15F 10 Brazil 3.0 (2.1) China (4.9) (0.5) 4 China 0.6 (

  14. Slide 14: Prominent Food Consumption Trends

    Prominent Food Consumption Trends Key Trend Description Hour glass economy The middle income is shrinking, and more consumers are falling into the squeezes the middle income upper and lower incomes; consumer food spending is similarly affected in developed economies Growing middle income in This rap

  15. Slide 15: ARYZTA Transformation Initiative - Strategy

    ARYZTA Transformation Initiative - Strategy Food North America Yesterday Today - Five businesses - One business focused on customer partnerships - Individual strategic directions - Customer centric strategy - Fragmented customer approach - Coordinated customer interactions - Integrated growth-enable

  16. Slide 16: Food Group – ROIC progress achieved in FY 2012

    Food Group – ROIC progress achieved in FY 2012 IAWS ARYZTA €3,572m €3,256m €2,947m 15.3% Food Group Net Assets (EUR m) €1,934m 15% ROIC Reported ROIC €1,163m €1,114m ATI target: 15% €563m €614m 10.5% Underlying ROIC 10.2% 2005 1 2006 1 2007 1 2008 1 2009 2010 2011 2012 1 FY 2005 – 2008 ROIC based on

  17. Slide 17: ARYZTA AG – Group Financial Performance FY 2008 – FY 2012

    ARYZTA AG – Group Financial Performance FY 2008 – FY 2012 Underlying fully diluted EPS (cent) 13.7% CAGR EBITA (EUR m) 16.0% CAGR Revenue (EUR m) 7.6% CAGR 4,208 202.2 3,134 234.7 3,212 244.0 3,010 310.1 337.5 3,877 245 280 273 393 444 20081 2009 2010 2011 2012 1 Pro forma numbers presented includin

  18. Slide 18: Food Group – Financial Performance FY 2008 – FY 2012

    Food Group – Financial Performance FY 2008 – FY 2012 EBITA (EUR m) 21.1% CAGR Revenue (EUR m) 15.1% CAGR 1,713 1,679 2,577 2,868 1,635 205 207 322 375 174 20081 2009 2010 2011 2012 1 Pro forma numbers presented including Hiestand Holding AG in the 2008 comparative. 18 © ARYZTA, December 2012

  19. Slide 19: Today ARYZTA is the third largest bakery company in the world

    Today ARYZTA is the third largest bakery company in the world Top 20 Bakeries 1. Grupo Bimbo S.A. 2. Yamazaki Baking 2012 3. ARYZTA 4. Flowers Food 5. Hostess Brands^ 6. Barilla Holding 7. Shikishima Baking 8. General Mills 2011 9. George Weston 10. Canada Bread & Co. 2009 2010 11. Fuji Baking Co 12

  20. Slide 20: ARYZTA AG Financial Review by CFO/COO – Patrick McEniff

    ARYZTA AG Financial Review by CFO/COO – Patrick McEniff (to 31 July 2012) 20 © ARYZTA, December 2012

  21. Slide 21: ARYZTA AG – Income Statement

    ARYZTA AG – Income Statement Year ended 31 July 2012 - Annual Report Pg 12 in Euro ’000 July 2012 July 2011 % Group revenue 4,207,667 3,876,923 8.5% EBITA 444,050 393,326 12.9% EBITA margin 10.6% 10.1% Associates and JVs, net 14,200 19,479 EBITA incl. associates and JVs 458,250 412,805 11.0% Finance

  22. Slide 22: ARYZTA AG – Underlying Revenue Growth

    ARYZTA AG – Underlying Revenue Growth Year ended 31 July 2012 – Annual Report Pg 12 Food N. Food Total in Euro million Food Europe America Rest of World Food Group Origin Total Group revenue 1,273.7 1,372.4 221.5 2,867.6 1,340.0 4,207.6 Underlying growth (1.0)% 7.0% 13.0% 3.8% 7.1% 4.9% Acquisitions

  23. Slide 23: ARYZTA AG – Segmental EBITA

    ARYZTA AG – Segmental EBITA Year ended 31 July 2012 – Annual Report Pg 12 in Euro ’000 July 2012 July 2011 % Food Group Food Europe 169,495 149,038 13.7% Food North America 176,291 148,673 18.6% Food Rest of World 29,040 24,601 18.0% Total Food Group 374,826 322,312 16.3% Origin1 69,224 71,014 (2.5)

  24. Slide 24: ARYZTA AG Underlying Net Profit Rec.

    ARYZTA AG Underlying Net Profit Rec. Year ended 31 July 2012 – Annual Report Pg 23 in Euro ’000 July 2012 July 2011 Reported net profit 146,264 212,657 Intangible amortisation 106,184 90,827 Tax on amortisation (30,354) (18,691) Hybrid instrument accrued dividend (16,642) (11,801) Net acquisition, d

  25. Slide 25: Food Group – Income Statement

    Food Group – Income Statement Year ended 31 July 2012 – Annual Report Pg 13 in Euro ’000 July 2012 July 2011 % Group revenue 2,867,644 2,577,420 11.3% EBITA 374,826 322,312 16.3% EBITA margin 13.1% 12.5% JVs, net 1,062 4,622 EBITA incl. JVs 375,888 326,934 15.0% Finance costs, net (58,717) (57,406)

  26. Slide 26: Food Group – Cash Generation

    Food Group – Cash Generation Year ended 31 July 2012 – Annual Report Pg 18 in Euro ’000 July 2012 July 2011 EBIT 275,043 235,780 Amortisation 99,783 86,532 EBITA 374,826 322,312 Depreciation 90,342 86,479 EBITDA 465,168 408,791 Working capital movement (19,280) (12,970) Dividends received1 11,183 13

  27. Slide 27: Food Group Net Debt and Investment Activity

    Food Group Net Debt and Investment Activity Year ended 31 July 2012 – Annual Report Pg 18 in Euro ’000 FY 2012 FY 2011 Food Group opening net debt as at 1 August (955,468) (1,115,623) Cash flows generated from activities 314,898 271,947 Hybrid instrument proceeds – 285,004 Net debt cost of acquisiti

  28. Slide 28: Food Group Financing

    Food Group Financing Excluding Origin – non-recourse financing facilities Annual Report Pg 16 – 17 Debt Financing – Food Group net debt of EUR 976.3m – Food Group gross term debt weighted average maturity of circa 5.94 years – Weighted average interest cost of Food Group financing facilities of circ

  29. Slide 29: ARYZTA AG – Return on Invested Capital

    ARYZTA AG – Return on Invested Capital as at 31 July 2012 – Annual Report Pg 19 Food Food N. Food Rest Total in Euro million Europe America of World Food Group Origin Total 2012 Group share net assets1 1,447 1,835 290 3,572 4603 4,032 EBITA incl. associates and JVs2 170 177 29 376 82 458 ROIC 11.7%

  30. Slide 30: ARYZTA AG Balance Sheet

    ARYZTA AG Balance Sheet as at 31 July 2012 – Annual Report Pg 20 in Euro ’000 As at July 2012 As at July 2011 Property, plant and equipment 1,022,587 939,949 Investment properties 29,268 32,180 Goodwill and intangible assets 2,871,982 2,650,956 Associates and joint ventures 127,384 124,057 Other fin

  31. Slide 31: Dividend

    Dividend Annual Report Pg 21 – Proposed dividend > 15 % of underlying fully diluted EPS > 337.5 cent x 15 % = 50.63 cent (CHF 0.61251) > Euro increase of 8.8% year-on-year > No longer subject to withholding tax – Timetable for dividend > Expected ex-date 29 January 2013 > Expected payment date 1 Feb

  32. Slide 32: ARYZTA AG Thank you!

    ARYZTA AG Thank you! 32 © ARYZTA, December 2012

Aryzta — Shareholder Meeting (December 2012) on 6ix