Aryzta Ag · SIX:ARYN

Aryzta — Shareholder Meeting (December 2011)

37 slides from Aryzta's shareholder meeting presentation, Dec 1, 2011

  1. Slide 1: ARYZTA AG 2011 AGM

    ARYZTA AG 2011 AGM 1 December 2011

  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 2011 Summary – CFO (Patrick McEniff) 3 © ARYZTA, December 2011

  4. Slide 4: Our Business

    Our Business – Global food business > Leader in speciality bakery – Zurich based Swiss AG > Operations in Europe, North and South America, South East Asia, Australia and New Zealand – Listed in Zurich (SIX; ARYN), and secondary listing in Dublin (ISE; YZA) Reporting Segments ARYZTA AG Food Europe Fo

  5. Slide 5: Food Group – Global Footprint

    Food Group – Global Footprint Revenue EUR 2.6bn Food North America 47% Food Europe 46% Food Rest of World 7% EBITA EUR 322m Food North America 46% Food Europe 46% 48 Manufacturing Centres 100 Distribution Centres Food Rest of World 19 Countries 8% 5 © ARYZTA, December 2011

  6. Slide 6: Food Europe

    Food Europe Year ended 31 July 2011 15 Manufacturing Centres 45 Distribution Centres 11 Countries Revenue €1.2bn, +10.5% Underlying revenue +0.9% Acquisitions & disposals +7.1% Currency +2.5% EBITA €149.0m, +13.6% Positive EBITA margin expansion of 40bps to 12.6% 1–60 people per km2 > 60 people per

  7. Slide 7: Food North America

    Food North America Year ended 31 July 2011 25 Manufacturing Centres 42 Distribution Centres 2 Countries Revenue €1.2bn, +112% Underlying revenue +5.3% Acquisitions & disposals +107% Currency +0.3% EBITA €148.7m, +113% Positive EBITA margin expansion of 10bps to 12.3% 1–60 people per km2 Hawaii > 60

  8. Slide 8: Food Rest of World

    Food Rest of World Year ended 31 July 2011 8 Manufacturing Centres 13 Distribution Centres 6 Countries Revenue €180m, +403% Underlying revenue +17.0% Acquisitions & disposals +374% Currency +11.8% EBITA €24.6m, +313% EBITA margin 13.7% (down from 16.6%) 1–60 people per km2 > 60 people per km2 8 © AR

  9. Slide 9: Origin Enterprises plc – 71.4% Holding

    Origin Enterprises plc – 71.4 % Holding Origin Enterprises plc Origin is a leading agri-services group focused on integrated agronomy and agri-inputs, with operations in the UK, Ireland and Poland. ARYZTA AG is the majority shareholder (71.4%) in Origin Enterprises plc, which has a listing on the AI

  10. Slide 10: Origin Enterprises plc

    Origin Enterprises plc Journey and positioning Phase 1 Phase 2 Phase 3 2006 2007 2009 2010 2011 Origin’s IPO Marine Consumer Feed formation Proteins & Oils Foods Consolidation Specialist focus on original Realignment of business portfolio Repositioned for growth activities of IAWS Reducing complexit

  11. Slide 11: Development of Business 2008 – 2011

    ARYZTA AG Development of Business 2008 – 2011 (Since Creation of ARYZTA AG) 11 © ARYZTA, December 2011

  12. Slide 12: Challenged Since Creation

    Challenged Since Creation Listed in August 2008 Born into a deep recession Deepest Global recession since 1929 Lehman Brothers collapse September 2008 12 © ARYZTA, December 2011

  13. Slide 13: Macro Environment Implications

    Macro Environment Implications Impact on Europe > Consumer slowdown > High unemployment > Crisis for Euro Impact on United States > Consumer slowdown > High unemployment > Quantitative easing 13 © ARYZTA, December 2011

  14. Slide 14: Impact on Switzerland

    14 0.6 0.8 1.0 CHFEUR 25.09.2008 25.11.2008 25.01.2009 © ARYZTA, December 2011 > Safe Haven 25.03.2009 25.05.2009 25.07.2009 Impact on Switzerland 25.09.2009 Impact on Switzerland 25.11.2009 25.01.2010 > Significant CHF appreciation +30% 25.03.2010 25.05.2010 25.07.2010 25.09.2010 25.11.2010 25.01.2

  15. Slide 15: Food Group Underlying Revenue Growth Trend

    Food Group Underlying Revenue Growth Trend1 25 % Total Food Group 20 % Food North America 15 % Food Europe 10 % 5% 0% −5% −10 % −15 % Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q1 2008 1 Pro forma numbers presented

  16. Slide 16: ARYZTA AG – Group Financial Performance

    ARYZTA AG – Group Financial Performance FY 2008 – FY 2011 Underlyingfully Underlying fully dilutedEPS diluted EPS(cent) (cent) 15% CAGR EBITA EBITA(EUR (EURm) m) 17% CAGR Revenue (EUR m) Revenue (EUR m) 7% CAGR 202.2 3,134 234.7 3,212 244.0 3,010 310.1 3,877 245 280 273 393 20081 2009 2010 2011 1 Pr

  17. Slide 17: Food Group (excluding Origin) – Financial Performance

    Food Group (excluding Origin) – Financial Performance FY 2008 – FY 2011 EBITA(EUR EBITA (EURm) m) 23% CAGR Revenue (EUR m) Revenue (EUR m) 16% CAGR 1,635 1,713 1,679 2,577 174 205 207 322 20081 2009 2010 2011 1 Pro forma numbers presented including Hiestand Holding AG in the 2008 comparative. 17 © A

  18. Slide 18: Food Group – Geographic diversification

    Food Group Geographic diversification Pro Forma Revenue 20081 Revenue 2011 EUR 1.6 bn EUR 2.6 bn Food North America Food Europe Food North America Food Europe 47% 46% 28% 71% Food Rest of World 1% Food Rest of World 7% 1 Pro forma numbers presented including Hiestand Holding AG in the 2008 comparati

  19. Slide 19: Food Group – Customer channel mix

    Food Group Diversification of the customer channel mix Customer Channel Mix 20081 Customer Channel Mix 2011 EUR 1.6 bn EUR 2.6 bn Limited Serve Limited Serve Restaurant Restaurant Other Foodservice 4% Other Foodservice 31% 25% 39% Convenience & Independent Retail Convenience & 33% Large Retail Indep

  20. Slide 20: Ambitious 2008 Targets to Drive Growth

    Ambitious 2008 Targets to Drive Growth ARYZTA Targets – Double earnings base within five years – 50% organic growth / 50% acquisition growth – Maintain investment grade credit rating – Net debt: EBITDA 2 – 3x – Maintain a strong balance sheet June 2008 20 © ARYZTA, December 2011

  21. Slide 21: Results to Date

    Results to Date – Revenue increased by 7% (CAGR) to EUR 3.88bn – EBITA increased by 17% (CAGR) to EUR 393m – Underlying EPS increased by 15% (CAGR) to 310.1 € cents Value created > CHF 1bn+ 10x multiple 21 © ARYZTA, December 2011

  22. Slide 22: Outlook and Guidance Targets

    Outlook and Guidance Targets September 2011 confirmed that: – FY 2012 consensus underlying EPS appears reasonable (338c) – FY 2013 underlying EPS target remains 400+ cent – FY 2015 target Food Group return on investment remains 15%+ from underlying Food business 22 © ARYZTA, December 2011

  23. Slide 23: Strategic Market Positioning

    Strategic Market Positioning “Developing customer partnership model with leading operators in every channel to consumers” 23 © ARYZTA, December 2011 2011

  24. Slide 24: Financial Review by CFO – Patrick McEniff

    ARYZTA AG Financial Review by CFO – Patrick McEniff (to 31 July 2011) 24 © ARYZTA, December 2011

  25. Slide 25: ARYZTA AG – Income Statement

    ARYZTA AG – Income Statement Year ended 31 July 2011 – Annual Report Pg 12 in Euro ’000 July 2011 July 2010 % Group revenue 3,876,923 3,009,726 28.8% EBITA 393,326 272,973 44.1% EBITA margin 10.1% 9.1% Associates and JVs, net 19,479 31,613 EBITA incl. associates and JVs 412,805 304,586 35.5% Finance

  26. Slide 26: ARYZTA AG – Underlying Revenue Growth

    ARYZTA AG – Underlying Revenue Growth Year ended 31 July 2011 – Annual Report Pg 12 Food N. Food Total in Euro million Food Europe America Rest of World Food Group Origin1 Total Group revenue 1,184.9 1,212.5 180.0 2,577.4 1,299.5 3,876.9 Underlying growth 0.9% 5.3% 17.0% 2.7% 11.8% 6.7% Acquisitions

  27. Slide 27: ARYZTA AG – Segmental EBITA

    ARYZTA AG – Segmental EBITA Year ended 31 July 2011 – Annual Report Pg 12 in Euro ’000 July 2011 July 2010 % Food Group Food Europe 149,038 131,245 13.6% Food North America 148,673 69,911 112.7% Food Rest of World 24,601 5,963 312.6% Total Food Group 322,312 207,119 55.6% Origin 71,014 65,854 7.8% T

  28. Slide 28: ARYZTA AG Underlying Net Profit Rec.

    ARYZTA AG Underlying Net Profit Rec. Year ended 31 July 2011 – Annual Report Pg 22 in Euro ’000 July 2011 Reported net profit 212,657 Intangible amortisation 90,827 Tax on amortisation (18,691) Gain on acquisitions, disposals and asset impairments (56,656) Integration and rationalisation related cos

  29. Slide 29: Food Group – Income Statement

    Food Group – Income Statement Year ended 31 July 2011 – Annual Report Pg 13 in Euro ’000 July 2011 July 2010 % Group revenue 2,577,420 1,679,417 53.5% EBITA 322,312 207,119 55.6% EBITA margin 12.5% 12.3 % JVs, net 4,622 20,041 EBITA incl. JVs 326,934 227,160 43.9% Finance costs, net (57,406) (36,272

  30. Slide 30: Food Group – Cash Generation

    Food Group – Cash Generation Year ended 31 July 2011 – Annual Report Pg 17 in Euro ’000 July 2011 July 2010 EBIT 235,780 160,252 Amortisation 86,532 47,450 EBITA 322,312 207,702 Depreciation 86,479 60,363 EBITDA 408,791 268,065 Working capital movement1 (12,970) 24,818 Dividends received2 13,138 24,

  31. Slide 31: Food Group Net Debt and Investment Activity

    Food Group Net Debt and Investment Activity Year ended 31 July 2011 – Annual Report Pg 18 in Euro ’000 FY 2011 FY 2010 Food Group opening net debt as at 1 August (1,115,623) (505,504) Cash flows generated from activities 271,947 251,018 Hybrid instrument proceeds 285,004 – Cost of acquisitions (317,

  32. Slide 32: 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 955.5m – Food Group gross term debt weighted average maturity of circa 6.2 years – Weighted average interest cost of Food Group financing facilities of circa

  33. Slide 33: ARYZTA AG – Return on Investment

    ARYZTA AG – Return on Investment Year ended 31 July 2011 – Annual Report Pg 18 Food Food N. Food Rest Total in Euro million Europe America of World Food Group Origin Total 2011 Group share net assets1 1,368 1,635 253 3,256 4343 3,690 EBITA incl. associates and JVs2 149 157 26 332 86 418 ROI 10.9% 9.

  34. Slide 34: ARYZTA AG Consolidated Group Balance Sheet

    ARYZTA AG Consolidated Group Balance Sheet Year ended 31 July 2011 – Annual Report Pg 19 in Euro ’000 As at July 2011 As at July 2010 Property, plant and equipment 939,949 945,100 Investment properties 32,180 20,648 Goodwill and intangible assets 2,650,956 2,280,763 Associates and joint ventures 124

  35. Slide 35: Dividend

    Dividend Annual Report Pg 20 – Proposed dividend > 15 % of underlying fully diluted EPS > 310.1 cent x 15 % = 46.52 cent (CHF 0.56791) > Euro increase of 27.1% year-on-year > No longer subject to withholding tax – Timetable for dividend > Shareholder approval 1 December 2011 (General Assembly) > Ex-

  36. Slide 36: FY 2011 Summary

    FY 2011 Summary – Robust performance from underlying business in FY 2011 > Demonstrated by the strong free cash generation of EUR 271.9m > Despite very challenging economic conditions – Efficient balance sheet and diversified sources of finance > ARYZTA has investment grade with long maturity – Glob

  37. Slide 37: Thank you!

    ARYZTA AG Thank you! 37 © ARYZTA, December 2011

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