Emmi Ag · SIX:EMMN
Emmi — Helvea Swiss Equities Conference 2013
31 slides from Emmi's conference presentation, Jan 17, 2013
Slide 1: Emmi: International success made in Switzerland
Emmi: International success made in Switzerland Helvea Conference Urs Riedener, CEO Emmi Group Bad Ragaz, 17 January 2013
Slide 2: Who we are
Who we are Where we come from and where we want to go How we want to achieve it Summary
Slide 3: 100 Million cups in 2012
100 Million cups in 2012 Helvea conference, Bad Ragaz, 17 January 2013 Page 3
Slide 4: Emmi at a glance
Emmi at a glance Sales 2011 § CHF 2,721 million (2010: CHF 2,684 million) Sales 1HY 2011 § CHF 1,339 million (1HY 2011: CHF 1,310 million) Net profit 2011 § CHF 83.0 million (2010: CHF 86.1 million) Net profit 1HY 2012 § CHF 39.3 million (1HY 2011: CHF 35.2 million) Net profit margin 2011 § 3.0% (20
Slide 5: Wide-ranging product portfolio
Wide-ranging product portfolio Product groups (net sales in first half of 2012) Dairy products Fresh products 27.2 % (CHF 364 million) 24.8 % (CHF 333 million) Other products/services 5.6 % (CHF 75 million) Powder/concentrates 3.5 % (CHF 47 million) Cheese 32.4% (CHF 434 million) Fresh cheese 6.5 %
Slide 6: Key production sites in Switzerland
Key production sites in Switzerland Lasting improvement in productivity and efficiency Suhr Kaltbach Dagmersellen Kirchberg Kirchberg (Berne) Emmen Ostermundigen Landquart Langnau Helvea conference, Bad Ragaz, 17 January 2013 Page 6
Slide 7: Where we come from and where we want to go
Who we are Where we come from and where we want to go How we want to achieve it Summary
Slide 8: The culture to support innovations
The culture to support innovations Image shaped through innovative brand concepts Gala Kaltbach Kaltbach Creamy &Tasty Swiss Müesli Mousse Extra Tasty Minicol Aloe Mix-it Müesli Benecol Vera Création Yoghurt Emmi Caffè Milk Shake Emminent Lucerne Yogodu Latte Intenso Banana Choco Latte Emmi Caffè La
Slide 9: Emmi wants to become an international player with competitive structures
Emmi wants to become an international player with competitive structures Background Success factors Strategic pillars § Swiss market saturated; § Critical company size/ international market key international player growing § Early, proactive Defence of position § Market liberalization in adjustment
Slide 10: Sales 2002 – 2012 and the long-term goal
Sales 2002 – 2012 and the long-term goal Continuous growth with medium-term 50/50 ratio international and Switzerland in CHF million 3500 3000 2671 2619 2684 2721 2501 2500 2335 626 675 732 811 50% 587 1926 2027 509 2000 444 416 447 1500 256 50% 1000 2045 1944 1952 1910 1826 1914 1463 1479 1583 1133
Slide 11: 5-year trend in profits
5-year trend in profits Operating and net profit ratios almost doubled, steady increase of EBITDA % 9 8.2 8.2 7.7 8 7 6.6 6.6 5.7 6 4.8 4.6 5 4.4 3.7 3.5 4 2.7 3 3.1 3.0 2 2.6 2.7 1.9 2.1 1 0 1HY07 1HY08 1HY09 1HY10 1HY2011 1HY2012 EBITDA-margin EBIT-margin Net profit Helvea conference, Bad Ragaz, 1
Slide 12: Percentage shares of export business and locally produced foreign business
Percentage shares of export business out of Switzerland and locally produced foreign business 2008 – 2012 Increased percentage of local production due to recent acquisitions in % 100 Major acquisitions 75% 67% 64% 53% approx. 40% 2006: Trentinalatte, yogurt, fresh cheese (Italy) 2009: Roth Cheese US
Slide 13: How we want to achieve it
Who we are Where we come from and where we want to go How we want to achieve it Summary
Slide 14: International base
International base Expansion through subsidiaries and cooperations USA, Monroe/WI USA,PennYan/NY Canada Benelux Emmi Roth Inc. CASP UK USA, Arcata/CA Cypress Grove Ch. Germany Austria Chile, Pitrufquén, Switzerland Kaiku - Surlat Italy, Spain, Pamplona, Roverè della Luna, Kaiku Trentinalatte France
Slide 15: Elements of success: Consistent acquisition strategy
Elements of success: Consistent acquisition strategy Possible acquisition roads Brand jewel Technology leader / Market synergies/ Organic Regional / Private labels with Efficiency gains Completion of added value product portfolio CHF 1’000 mio. International Strategic/ Onken Möglich Bontà Divina Rot
Slide 16: Acquisitions: What we care about
Acquisitions: What we care about Clearly defined criteria § Leading position in a specific market or in a niche § Active in Emmi’s core business (fresh dairy, cheese) and key markets § Switzerland: cost synergy potential; International: convincing growth stories § Mainly branded products or with pot
Slide 17: Acquisitions: Track record
Acquisitions: Track record Development of recent acquisitions Year of Company Growth acquisition 2006 Trentinalatte, Italy Trentina brand 2009 Roth Cheese, US 2010 Cypress Grove Chevre, US Helvea conference, Bad Ragaz, 17 January 2013 2011 Onken yogurts, UK 2011 A-27 desserts, Italy 2012 Kaiku, Spai
Slide 18: Select trends and transfer them into promising concepts
Elements of success: Select trends and transfer them into promising concepts Important trends in the food industry § Indulgence § Health Lactose Free „All Natural“ Toni § Convenience § Sustainability Helvea conference, Bad Ragaz, 17 January 2013 Page 18
Slide 19: Strengthening of brand concepts
Strengthening of brand concepts Emmi’s house of brands Emmi Position Statement Genuine Premium Indulgence One Word Equity Emmi Indulgence One Word Equity Swiss & local Original Refinement Inspiration Wellbeing Desserts Brands jewels Product Brands Bontà Divina desserts are produced in Italy by A-27
Slide 20: Significant growth potential by expanding concepts and markets
Significant growth potential by expanding concepts and markets Existing concept platform New concept platforms Strong know-how base in Switzerland Own development or acquisitions Existing markets Penetration of existing Development of new platforms platforms in existing markets in existing markets A
Slide 21: Penetration of existing concept platforms: Kaltbach
Penetration of existing concept platforms in existing markets Example: Kaltbach The concept is unique in the world TV Print Friends of Kaltbach Online/ Tastings at POS Newsletter Launch of Visitor centre cheese counter Fairs & Competitions Helvea conference, Bad Ragaz, 17 January 2013 Page 21
Slide 22: Geographic multiplication: Emmi Caffè Latte in Spain
Geographic multiplication of existing platforms Example: Emmi Caffè Latte in Spain Sales as at 30 June 2012 Share per country Strong development of Spanish market (compared to previous year) Helvea conference, Bad Ragaz, 17 January 2013 Page 22
Slide 23: Emmi Caffè Latte: threshold of 100 mio. cups reached
Geographic multiplication of existing platforms Example: Emmi Caffè Latte Threshold of 100 mio. cups reached in 2012 Mio. cups 100 § Growth in 1HY2012: 90 80 − Switzerland: 6% − International: 9% 70 60 § Total growth for full-year 50 approx. 10% 40 30 20 10 0 2007 2008 2009 2010 2011 2012 CH Export
Slide 24: Development of new platforms: Emmi Milk Shake
Development of new platforms in existing markets Example: Emmi Milk Shake Successful launch in June 2011 Sponsoring TV Posters/Print Fairs / tastings Internet/Social Media Samplings 2. POS Activities at PoP Cross-Selling Promotions UHT milk Helvea conference, Bad Ragaz, 17 January 2013 Page 24
Slide 25: Acquisition of new platforms: Bontà Divina
Acquisition of new platforms in (partly) new markets Example: Bontà Divina Summer 2011: Acquisition of A-27 with 230 employees Establish Build up new markets Bontà Divina brand Traditional italian desserts Strengthen international market positions by marketing the brand through Emmi’s international
Slide 26: Emmi universe 2013 (1/2)
Emmi universe 2013 (1/2) Leader in attractive niche markets Brand Caffè AOC Well- Fresh EOS Kaltbach Onken Country Latte Cheeses being Desserts Switzerland x x x x x x USA x x x Italy (incl. A-27) x x x UK x x x x (x) (x) x Germany x x x x x x Canada x x x Benelux x x x x x Austria x x x x (x) Spain
Slide 27: The Emmi universe (2/2)
The Emmi universe (2/2) Emerging More and more sophisticated Sophisticated Lifestyle Germany Austria U.K. Benelux Exports USA Basic products Quality / added value Spain Canada Switzerland Chile Tunesia Helvea conference, Bad Ragaz, 17 January 2013 Seite 27
Slide 28: Summary
Who we are Where we come from and where we want to go How we want to achieve it Summary
Slide 29: Conclusion
Conclusion § Emmi is on the right track to drive forward the transformation from − a Switzerland oriented to a truly international player and from − a milk processing to a brand-driven company § Innovative brand concepts, Swiss quality approach, international market and client knowhow, agility and 5
Slide 30: Eight good reasons to invest in Emmi
Eight good reasons to invest in Emmi No. 1 as full service provider in Switzerland, market leader with Caffè Latte and fondue in Europe, the world’s no. 1 as exporter of Swiss cheese Good positions with niche products in various international markets Powerful innovation culture Robust strategy able
Slide 31: Many thanks!
Many thanks! Helvea conference, Bad Ragaz, 17 January 2013 Page 31