Slide 1: Raisio's Interim Report July-September 2016
Raisio’s Interim Report July-September 2016 CEO Matti Rihko, Raisio plc 9 November 2016
Slide 2: Highlights in Q3/2016
Highlights in Q3/2016 • Raisio’s third best quarterly results ever • Weakened pound had a negative impact of over one million euros • At comparable exchange rates, Raisio’s EBIT* is cumulatively ahead of last year • Sales volume of Benecol spreads and minidrinks increased in the UK • 12% sales growt
Slide 3: Raisio Group 7-9/2016
Raisio Group 7-9/2016 • The Group’s comparable EBIT 14.0 (16.0) M€ • 13.6 (11.9)% of net sales • Brands Division’s comparable EBIT 11.1 (15.8) M€ • 16.2 (16.5)% of net sales • Raisioagro’s EBIT 2.3 (1.3) M€ • Improvement: +70% • The Group’s net sales 102.8 (134.5) M€ • Cash flow from business operat
Slide 4: Raisio Group 1-9/2016
Raisio Group 1-9/2016 • The Group’s comparable EBIT 38.7 (39.7) M€ • 11.3 (10.0)% of net sales • Brands Division’s comparable EBIT 36.7 (41.4) M€ • 14.9 (14.4)% of net sales • Raisioagro’s EBIT 3.7 (2.8) M€ • 3.6 (2.4)% of net sales • The Group’s net sales 340.9 (398.5) M€ 4
Slide 5: Group EBIT
Group EBIT M€ 7/2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3/2016 Comparable EBIT, rolling 12 months 5
Slide 6: Group EBIT by quarters
Group EBIT by quarters M€ Comparable figures 20 16.0 15.0 15 14.0 14.0 12.1 12.0 12.0 10.6 11.0 10.7 10 9.6 9.7 8.0 8.5 8.4 8.9 6.6 6.6 5.4 5 0 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 6
Slide 7: Key figures, comparable income statement
Key figures, comparable income statement 7-9/ 7-9/ 1-9/ 1-9/ 2016 2015 2016 2015 2015 Net sales M€ 102.8 134.5 340.9 398.5 521.2 Change in net sales % -23.5 5.9 -14.4 6.0 5.5 EBIT M€ 14.0 16.0 38.7 39.7 51.7 EBIT % 13.6 11.9 11.3 10.0 9.9 Depreciation and M€ -2.6 -3.5 -8.7 -13.0 -16.5 impairment EBI
Slide 8: Key figures, balance sheet
Key figures, balance sheet 1-9/ 1-9/ 2016 2015 2015 Equity ratio % 63.1 60.3 62.3 Gearing % 13.1 18.0 12.1 Net-interest-bearing debt M€ 39.8 61.7 42.2 Equity per share € 1.93 2.18 2.23 Investments M€ 13.4 7.7 11.0 8
Slide 9: Specified outlook for 2016
Specified outlook for 2016 Raisio estimates its EBIT to exceed the 2015 level at comparable exchange rates, while comparable reported EBIT is expected to reach around 50 million euros due to uncertainty related to the development of the pound. 9
Slide 10: RAISIO
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Slide 11: Brands Division
Brands Division 7-9/ 7-9/ 1-9/ 1-9/ 2016 2015 2016 2015 Net sales M€ 68.4 95.5 246.8 287.5 EBIT M€ 10.5 15.8 16.5 38.5 Items affecting comparability M€ 0.6 0.0 20.2 2.9 Comparable EBIT M€ 11.1 15.8 36.7 41.4 Comparable EBIT-% % 16.2 16.5 14.9 14.4 11
Slide 12: Brand Division's EBIT by quarters
Brand Division’s EBIT by quarters M€ Comparable figures 20 15.8 14.3 14.2 15 13.9 11.3 11.4 11.0 11.1 10.8 11.1 10.8 10.6 9.4 9.7 10.0 10 9.0 8.2 7.6 6.4 5 0 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 12
Slide 13: Healthy Snacks
Healthy Snacks • EBIT for Northern Europe improved slightly, net sales at the comparison period level • Strong sales growth of 12% for Elovena products • Positive EBIT of Eastern Europe at the comparison period level, increased net sales • In the UK, Newport’s snack bar business divested on 12 July,
Slide 14: Benefits of oats to new product groups
Benefits of oats to new product groups Benefits of oats to new product groups • Sales in Elovena product range has almost tripled in ten years • Unique Elovena is at the heart of oat boom and growing snacking trend • Extensive consumer study used in new product development, such as Elovena snack qua
Slide 15: Benecol
Benecol • The British pound exchange rate resulted in a decrease of -0.8 M€ in Benecol’s EBIT in euros • Market share increased in the UK and Benecol took market share from competitors, both in spreads and minidrinks • Soft Chew food supplement launched in Finland; available in the pharmacy channel
Slide 16: Unique novelty: Benecol Soft Chew
Unique novelty: Benecol Soft Chew • The first cholesterol-lowering soft, chewable food supplement • Storage at room temperature • A convenient way to lower cholesterol for example during the workday or while travelling • New sales channel: online store at www.oatletstore.com 16
Slide 17: Confectionery
Confectionery • Solid demand for Czech-made soft gums continued • Sales for confectionery made in the Czech Republic grew by over 10% • Cumulatively, UK’s EBIT in local currency at the comparison period level • The weakening pound decreased EBIT by -0.3 M€ in euros • Nimbus sales increased by 10% 17
Slide 18: Novelties in line with Raisio's strategy
Novelties in line with Raisio's strategy
Slide 19: Raisioagro
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Slide 20: Raisioagro
Raisioagro 7-9/ 7-9/ 1-9/ 1-9/ 2016 2015 2016 2015 Net sales M€ 37.1 40.3 101.8 117.6 EBIT M€ 2.3 1.3 3.7 2.8 Items affecting comparability M€ 0.0 0.0 0.0 0.0 Comparable EBIT M€ 2.3 1.3 3.7 2.8 Comparable EBIT-% % 6.1 3.3 3.6 2.4 20
Slide 21: Raisioagro's EBIT by quarters
Raisioagro’S EBIT by quarters M€ Comparable figures 3 2.6 2.3 2.0 2 1.3 1.4 1.4 1.4 1.2 1.3 1 0.4 0.0 0.1 0.0 0.0 0.0 0 -0.1 -0.3 -0.6 -1 -2 -1.8 -3 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 21
Slide 22: Cattle feeds
Cattle feeds • EBIT improved as a result of enhanced operations and the streamlined, extended product range • The share of more affordable feeds in the product mix increased • Benemilk feeds have an established user base and market position in Finland • Milking robot monitoring (Tuotostutka®) optimi
Slide 23: Fish feeds
Fish feeds • Profitability improved as a result of enhanced operations and increased sales volume • Investment in innovations and sustainable development strengthened the market position • All Raisioaqua feeds use the Baltic Blend innovation • Benella fish to Kesko’s selections • Three new Benella p
Slide 24: Baltic Blend innovation; less nutrients into the Baltic Sea
Baltic Blend innovation; less nutrients into the Baltic Sea • Raisioaqua’s Baltic Blend fish feed innovation reduces nutrient loads in the Baltic Sea • Baltic herring and sprat used in feeds are processed from fish meal into rainbow trout Phosphorus and nitrogen loads in the Baltic Sea Before DIFFER