Mowi Asa · OSL:MOWI
Mowi Asa — Investor Day (November 2018)
75 slides from Mowi Asa's investor day presentation, Nov 13, 2018
Slide 1: Capital Markets Day
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Slide 2: Why are we here today? MOWI
Company Presentation Why are we here today? MOWI • Global brand strategy – propose new company name MOWI • Integrated value chain important for the success of the brand • Increased value creation for consumers and our share holders • Increased focus on quality and differentiation • The future of sal
Slide 3: Brand opportunity: branding objectives
Brand opportunity Branding Objectives € 35m Brand investment in next 2 years € 1bn in branded turnover by 2025 € 100m additional EBIT (cash break even by 2022) Page 3
Slide 4: The MOWI value chain
Company Presentation The MOWI value chain Breed Feed Smolt At sea Harvesting Processing New product development Food Page 4
Slide 5: MOWI breeding network
Company Presentation MOWI breeding network MOWI BREEDING MOWI BREEDING NORWAY CANADA EAST MOWI BREEDING UK MOWI BREEDING CANADA WEST MOWI BREEDING CHILE Page 5
Slide 6: MOWI - clear benefits to control breeding
Company Presentation MOWI - clear benefits to control breeding • Mowi fish can be selected from a large population – capacity 450 mill eggs • Mowi fish can through careful selection become very special • Quality traits has high heritability • Our own breed and feed makes a difference on the end prod
Slide 7: Animal Breeding - Heritability
Company Presentation Animal Breeding - Heritability h2 = 1 means everything is explained by genetics Heritability (h2) h2 = 0 means everything is explained by environment Genotype Environment Phenotype Page 7
Slide 8: The good news for MOWI
Company Presentation The good news for MOWI Good news: Quality traits higly heritable GROWTH COLOUR H2= 0.35 H2= 0.47 Good news: Breeding can permanently impact the quality of the salmon Page 8
Slide 9: MOWI feed
Company Presentation MOWI feed MOWI FEED NORWAY MOWI FEED UK Page 9
Slide 10: MOWI feed
Company Presentation MOWI feed • “MOWI recipe” • High in Omega 3 • Specific mix of vitamins and natural color • Proactive food safety programs, such as marine oil cleaning Page 10
Slide 11: MOWI farming network
Company Presentation MOWI farming network Norway Canada East Faroe Island Scotland Ireland Canada West Chile Page 11
Slide 12: MOWI fish will be raised in selected MOWI farms
MOWI fish will be raised in selected MOWI farms
Slide 13: Our farmers are out there every day caring for the fish you eat
Our farmers are out there every day caring for the fish you eat
Slide 14: MOWI VAP processing, sales & marketing network
Company Presentation MOWI VAP processing, sales & marketing network Scandinavia, Sales Poland, Sales UK & Ireland, & processing South Korea, Japan, Sales & Sales & Sales & processing processing processing DACH & CEE, Sales & Spain, Sales & processing Canada, processing Sales &processing China & Taiw
Slide 15: MOWI – Processing and sales
Company Presentation MOWI – Processing and sales • Efficient processing facilities in 24 countries, close to the consumer • High level on food safety and traceability, all certified. • Competent teams dedicated to product development in all markets • Through advanced grading and specific quality cri
Slide 16: Slide 16
Slide 17: Key drivers in MOWI products
Company Presentation Key drivers in MOWI products Taste Convenience Health Page 17
Slide 18: MOWI Summary
Company Presentation MOWI Summary • Increased value creation for • We have built inhouse consumers and our share branding competence, and holders will in 2019 launch the MOWI concept that is the salmon for • Company name the same as the future the brand • The MOWI story and content is • Long term pr
Slide 19: Thanks
Thanks
Slide 20: The category opportunity
MQWI The category opportunity
Slide 21: Our commercial strategy
Category Opportunity Our commercial strategy • What? - achieve a price/margin above our competitors in the market • How? - Strategic partnership with key clients based on MHG unique capabilities - Brands Page 2
Slide 22: Our global VAP processing, sales & marketing network
Category Opportunity Our global VAP processing, sales & marketing network Scandinavia, Sales Poland, Sales South Korea, Japan, Sales & UK & Ireland, & processing Sales & processing Sales & processing processing DACH & CEE, Sales & processing Canada, Spain, Sales & China & Taiwan, Sales processing Sa
Slide 23: Marine Harvest Sales & Marketing: top line growth and improved margins
Category Opportunity Marine Harvest Sales & Marketing: top line growth and improved margins Turnover EUR millions) 4000 160 3500 140 3000 120 2500 100 2000 80 1500 60 1000 40 500 20 0 0 2011 2012 2013 2014 2015 2016 2017 Net fob sales Op EBIT Page 4
Slide 24: Branding will turn our integrated value chain into shareholders value
Category Opportunity Branding will turn our integrated value chain into shareholders value Value added capabilities Future Branded salmon helps MH protect margins in cases of lower consumer demand or Profitably increase in excess supply situations value-adding with branded salmon in retail Develop P
Slide 25: Key consumer trends supporting the MOWI brand
Category Opportunity Key consumer trends supporting the MOWI brand • Consumer trends in food - Health - Transparency - Sustainability - Authentic taste experience Page 6
Slide 26: MOWI Branding Strategy
MOWI Branding Strategy
Slide 27: MOWI Branding Strategy
Category Opportunity MOWI Branding Strategy • Creating unique salmon products with superior - Health benefits - Transparency - Food enjoyment Page 8
Slide 28: MOWI Branding Strategy
Category Opportunity MOWI Branding Strategy • Based on our unique value chain Page 9
Slide 29: MOWI Branding Strategy
Category Opportunity MOWI Branding Strategy • And delivering the message in TRACEABILITY an engaging and relevant TOOL way M OBILE VERSION - Going from re-active to pro-active communication SEE HERE IN M ORE DETAIL USER SCANS QR CODE FROM THE PACKAGING Confidential content. Please do not share. Page
Slide 30: Branding Objectives
Category Opportunity Branding Objectives € 35m Brand investment in next 2 years € 1bn in branded turnover by 2025 € 100m additional EBIT (cash break even by 2022) Page 11
Slide 31: MOWI Expansion plan
Category Opportunity MOWI Expansion plan 2019: Launch in Europe As from 2020: Continued roll-out in Europe, North America & Asia Page 12
Slide 32: Thanks
Thanks
Slide 33: Value creation with a global brand
Value creation with a global brand MH Capital Markets Day Edinburgh, 13th November 2018
Slide 34: There is nothing more powerful than an idea whose time has come
There is nothing more powerful than an idea whose time has come Victor Hugo – French writer 1802 -1885
Slide 35: So, what do we have today?
MOWI – The Brand Project So, what do we have today? • A beautiful thriving business • With powerful competitive advantages • Leading edge compliance and working within the natural environment 3
Slide 36: We want to continue growing faster than the food industry
MOWI – The Brand Project We want to continue growing…faster than the food industry and our competitors. ..fueled by CONSUMER INSIGHTS 4
Slide 37: Consumer trends: food consumption habits are changing
Consumer trends Food consumption habits are changing 36% 32% 2 times/week of consumers want to of consumers want to Recommended fish intake reduce their meat increase their fish by international Health consumption consumption Authorities Source: 2018 Seafood Report Kantar TNS / Kantar Worldpanel Pag
Slide 38: Demand for high quality opens up value opportunities
Consumer trends Demand for high quality opens up value opportunities • 62% choose high quality products more frequently • 60% are willing to pay more for a high quality product • 91% want more transparency on food products • 91% are sensitive to animal welfare • 72% think we should only consume fish
Slide 39: Introducing a global brand launch
Brand opportunity Introducing …a global brand launch Page 7
Slide 40: Why a global brand?
MOWI – The Brand Project Why a global brand? • Builds competitive advantages • Generates people´s loyalty • Yields higher margins • Drives Category growth • Protects category reputation …engaging the targets through COMMUNICATION and CREATIVITY
Slide 41: Building Brand Love creates value
Building Brand Love CREATES VALUE
Slide 42: And VALUE means higher price and margin
And VALUE means Higher price and margin
Slide 43: So, how to achieve these objectives with MOWI?
So, how to achieve these objectives with MOWI? Leveraging Consumer Insights, Communication & Creativity
Slide 44: A winning credible idea
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 45: A winning idea better, different and unique compared to competition
MOWI – The Brand Project A winning idea that it is better, different and unique compared to competition
Slide 46: A winning concept
Winning Idea A winning concept Overall rating and purchase intention scores in planned launch markets (Top 2 winning concepts average in 40.2% planned launch markets) Leading competitor (Average in planned launch markets) 32.5% Organic (Average in planned launch markets) 30.5% Page 15
Slide 47: CARING
CARING Our heritage is about caring. We are pioneers of farmed Atlantic salmon with over 50 years of care and craftsmanship in everything we do. Page 15
Slide 48: We care for our salmon
Design guideline - Company We care for our salmon We care for our MOWI salmon throughout the value chain, from feed to plate Page 16
Slide 49: We care for the environment
Design guideline - Company We care for the environment We breed our salmon sustainably to keep the impact on our surroundings to a minimum. Page 17
Slide 50: We care for our consumers
Design guideline - Company We care for our consumers We care - because good food is about caring for yourself and for the ones you love. Therefore, we offer a salmon that is extra-nutritious and healthy, truly delicious and convenient to enjoy. Page 18
Slide 51: Salmon is Good, MOWI is Goodness
MOWI – The Brand Project There are salmon There’s MOWI SALMON IS GOOD MOWI IS GOODNESS
Slide 52: With a superior product and competitive edge
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 53: Superior product: the MOWI winning product formula
Superior product So, what’s the MOWI winning product formula? Sc MOWI > (Ω3 + P27 + Mbl) Higher Redder color Careful Omega 3 Softer Marbling Selection Page 23
Slide 54: Superior product: health, quality, taste and care
Superior product So, what’s the MOWI winning product formula? Sc MOWI > (Ω3 + P27 + Mbl) Superior Superior Superior Health Quality & Taste Care Page 24
Slide 55: A premium range to satisfy all consumer needs
Superior product A premium range to satisfy all consumer needs Delicious high quality Delicious high quality salmon The absolute epitome of salmon salmon ready to cook ready to eat in a variety of quality, our hand picked preparations broodstock salmon for the top stores and restaurants Page 25
Slide 56: Something you will taste in a few minutes…
MOWI – The Brand Project Something you will taste in a few minutes…
Slide 57: And a superb and consistent brand appearance
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 58: What do we want from packaging?
Brand Design What do we want from packaging? • Let the product talk • Maximize consumer experience • Iconize the brand • Bring trust and confidence Page 28
Slide 59: Caring means full transparency
MOWI – The Brand Project Caring means full transparency We will do that through full traceability
Slide 60: 24/7 full-time transparency on your screen
Brand transparency 24/7 full-time transparency on your screen The longest TVC in the world: MOWI Screen Saver
Slide 61: That tells our story in a credible way
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 62: MOWI - The book (Silver Harvest)
MOWI - The book (Silver Harvest)
Slide 63: Building occasions to expand the category
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 64: Outdoor
MOWI – The Brand Project OUTDOOR
Slide 65: Print
MOWI – The Brand Project PRINT
Slide 66: MOWI – The Brand Project
MOWI – The Brand Project
Slide 67: MOWI – The Brand Project
“WAITER! THERE’S AN ORDINARY POTATO NEXT TO MY MOW! SALMON!!”. MOWI is Goodness. MOWI
Slide 68: MOWI – The Brand Project
MOWI – The Brand Project
Slide 69: Through a cutting-edge in-store presence
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 70: Slide 70
Slide 71: And an ambitious expansion plan
MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
Slide 72: Nielsen test results in planned launch markets
Brand Ambition Nielsen test results in planned launch markets Project Price (1) Volumetric (2) Business Plan (3) Project Price (1) Volumetric (2) Business Plan (3) MOWI Full Range (4) Premium target Price premium Price premium Premium target Price premium Price premium France Est. Poland +28% 20% 20
Slide 73: All this while transforming the company
Brand ambition ALL THIS WHILE TRANSFORMING THE COMPANY ASA Page 86
Slide 74: One story
Brand MOWI presentation – The Brand Project OUR HERITAGE OUR VISION ONE STORY OUR VALUES OUR DIRECTION Page 86
Slide 75: Thank you
Thank you (and hope you agree with Victor Hugo)