Raisio Plc Class K · OMXHEX:RAIKV
Raisio Plc Class K — Investor Day (June 2021)
89 slides from Raisio Plc Class K's investor day presentation, Jun 10, 2021
Slide 1: Raisio's Capital Markets Day 2021
Raisio’s Capital Markets Day 2021 10 June 2021
Slide 2: Agenda and presenters
Agenda and presenters Break 10 minutes Raisio’s strategy Raisio’s plant-based Healthy Responsibility at Financial highlights Q&A Facilitator 2022–2025 offering as a growth Ingredients and the core of Raisio’s of the strategy driver Operations strategy period Pekka Kuusniemi Iiro Wester Virpi Aaltone
Slide 3: Raisio in brief
Raisio in brief Pekka Kuusniemi CEO 3.5.2023 Raisio’s Capital Markets Day 2021 3
Slide 4: Raisio in brief – highly responsible healthy food company
Raisio in brief – highly responsible healthy food company FOUNDED IN NET SALES (2020) EBIT (2020) 1939 234 M€ 28M€ CARBON NEUTRAL ENERGY INTERNATIONAL EMPLOYEES COUNTRIES 92% 380 10 HOUSE OF BRANDS 3.5.2023 Raisio’s Capital Markets Day 2021 4
Slide 5: Our recent journey
Our recent journey Divesting the confectionery Building a new production Acquiring Verso Food business and focusing on facility to manufacture plant- to strengthen our healthy food brands based added value products plant-based value added product offering 2017 Our values 2019 2021 & purpose 2016 201
Slide 6: Our purpose: Food for health, heart and earth
Our purpose: FOOD FOR HEALTH, HEART AND EARTH. 3.5.2023 Raisio’s Capital Markets Day 2021 6
Slide 7: Our values: Courage, Fairness, Drive
Our values: COURAGE FAIRNESS DRIVE 3.5.2023 Raisio’s Capital Markets Day 2021 7
Slide 8: Healthy growth strategy 2022–2025
Healthy growth strategy 2022–2025 3.5.2023 Raisio’s Capital Markets Day 2021 8
Slide 9: Tailwind behind our back
Tailwind behind our back Healthy living Holistic wellbeing Health is understood as holistic wellbeing. Awareness of the importance of mental health has increased during the pandemic. Sustainability Plant-based eating Expectations ever wider Catering to mainstream Minimize the environmental impact Pl
Slide 10: Raisio's growth drivers 2022–2025 – creating a unique combination
Raisio’s growth drivers 2022–2025 – creating a unique combination Benecol® and plant stanol ester solutions Value added Plant-based oats and foods ingredients Food for Health, Heart and Earth 3.5.2023 Raisio’s Capital Markets Day 2021 10
Slide 11: Benecol and plant stanol ester solutions – key drivers for profitability
Benecol® and plant stanol ester solutions – key drivers for Raisio’s profitability CARDIOVASCULAR HEALTH1) PACKAGED FOODS IN EUROPE, EURbn Health benefits, hidden market MOTIVATION potential and plant stanol ester 3 000 2.6 2 500 2.3 2% 2.1 2 000 2% WHAT IS 3% growth ambition for annual net OUR GOAL
Slide 12: Example of ongoing research regarding potential uses for plant stanol ester
Example of ongoing research regarding potential uses for plant stanol ester • EU Authorised Health Claim: Plant stanol ester has been shown to lower blood cholesterol. High cholesterol is a risk factor in the development of coronary heart disease • Research program to evaluate other possible health
Slide 13: Value added oats and ingredients – aiming to outpace market growth
Value added oats and ingredients – aiming to significantly outpace the market growth SPEND ON RELEVANT CATEGORIES IN SELECTED MARKETS1), EURbn Health benefits, gluten-free MOTIVATION 3% and traceability 20 000 18.8 18 000 5% 5% 16 000 14.7 14 000 10.9 6% 8% WHAT IS 12% growth ambition for annual net
Slide 14: Plant-based foods – growth driven by shifting consumer preferences
Plant-based foods – growth driven by a shifting consumer preferences due to health and environmental concerns PLANT-BASED PROTEIN1) SPEND DEVELOPMENT IN SELECTED MARKETS2), EURbn Food revolution, health benefits MOTIVATION and sustainability 3 000 2 500 2.4 6% 2 000 8.1% WHAT IS 38% growth ambition
Slide 15: Existing structure focusing on customer needs enables executing the growth strategy
Raisio’s existing structure focusing on customer needs enables executing the growth strategy Benecol® and plant stanol ester solutions Value added Plant-based oats and foods ingredients 3.5.2023 Raisio’s Capital Markets Day 2021 15
Slide 16: Ambition to expand in Europe
Current brand footprint Elovena®, Benecol® and Beanit® Elovena® Elovena® and Benecol® Benecol® Ambition to expand in Europe 3.5.2023 Raisio’s Capital Markets Day 2021 16
Slide 17: Our response is strong
Our response is strong 3.5.2023 Raisio’s Capital Markets Day 2021 17
Slide 18: Invested EUR 65 million in creating a platform for growth
During the past 3 years, we have invested EUR 65 million in creating a platform for growth New production Nokia mill Verso Food facility upgrade acquisition Leveraging these platforms to serve increasing demand
Slide 19: Strengthening our plant-based offering
To meet the growing consumer demand, we are now significantly strengthening our plant-based offering 3.5.2023 Raisio’s Capital Markets Day 2021 19
Slide 20: Nokia mill upgrade to focus on gluten-free oat production
Nokia mill upgrade to focus on gluten-free oat production 3.5.2023 Raisio’s Capital Markets Day 2021 20
Slide 21: Strengthening plant-based food category with Verso Food
Strengthening the plant-based food category and Raisio’s technological expertise with Verso Food 3.5.2023 Raisio’s Capital Markets Day 2021 21
Slide 22: Proudly presenting
Photo by Rob Laughter on Unsplash Proudly presenting 3.5.2023 Raisio’s Capital Markets Day 2021 22
Slide 23: 100% plant-based Finnish gluten-free oat
100% plant-based Finnish gluten-free oat 3.5.2023 Raisio’s Capital Markets Day 2021 23
Slide 24: Carbon-neutral production in Finland, recyclable packaging
Carbon-neutral production in Finland Recyclable packaging with renewable materials 3.5.2023 Raisio’s Capital Markets Day 2021 24
Slide 25: Delicious taste & texture; brands that consumers love
Delicious taste & texture Brands that consumers love 3.5.2023 Raisio’s Capital Markets Day 2021 25
Slide 26: Raisio is in an excellent position to capitalize growth opportunities
Raisio is in an excellent position to capitalize targeted growth opportunities 3.5.2023 Raisio’s Capital Markets Day 2021 26
Slide 27: Food for Health, Heart and Earth.
Food for Health, Heart and Earth. 3.5.2023 Raisio’s Capital Markets Day 2021 27
Slide 28: Raisio's plant-based offering as a growth driver
Raisio’s plant-based offering as a growth driver Iiro Wester, CCO 3.5.2023 Raisio’s Capital Markets Day 2021 28
Slide 29: Growth of plant-based foods driven by global consumer trends
The growth of plant-based foods and drinks is driven by global consumer trends Health & Wellbeing Sustainability Identity & Personalisation Natural Nutrition Plant-based eating Convenient Snacking 3.5.2023 Raisio’s Capital Markets Day 2021 29
Slide 30: The UK is the largest market; others offer growth opportunities
The UK is the largest market, while many others offer interesting growth opportunities as well OAT-BASED PRODUCTS1, PLANT-BASED PROTEINS2, EUR MILLION IN 2020E, CAGR 2020E–2025F EUR MILLION IN 2020E, CAGR 2020E–2025F 8 18 7 16 6 14 Mid-growth 12 5 small markets CAGR (%) CAGR (%) 10 4 8 Mid-growth 3
Slide 31: Why are plant-based products loved by consumers?
Why are plant-based products loved by consumers? 3.5.2023 Raisio’s Capital Markets Day 2021 31
Slide 32: Key drivers for choosing plant-based products
Key drivers for choosing plant-based products 60% 50% 29% 31% 28% Healthiness Good taste Fit for vegetarian Wanting to try Ethical reasons / vegan diet something new Plant-based is seen When you get used Increased interest Many want new Plant-based is as good for you. Oats to plant-based toward vega
Slide 33: Consumption of plant-based dairy growing fast in Europe
In Europe, the consumption of plant-based dairy is growing fast, especially among younger consumers UK FINLAND +25% Plant-based milks grow 5x faster than dairy milk +31% Plant-based milks’ growth in 2020 +16% +9% Plant-based yogurts grow Plant-based yogurts’ 8x faster than dairy growth in 2020 yogur
Slide 34: The 1st oat-based range proven to lower cholesterol with plant stanols
The 1st oat-based range proven to lower cholesterol with plant stanols Offers consumers a unique Drives value for Increases heart-healthy option consumers & category average purchase 3.5.2023 Raisio’s Capital Markets Day 2021 34
Slide 35: Benecol OAT meets expectations of plant-based consumers
Plant-based consumers don’t just look for any plant-based product – they look for the right one. Healthy, sustainable & tasty. Benecol OAT meets the expectations of plant-based consumers. Benecol OAT is kind to your heart and the planet. 3.5.2023 Raisio’s Capital Markets Day 2021 35
Slide 36: Consumer feedback on Elovena concept
"Elovena's concept sounds great! It is a trusted brand and I would certainly dare to buy these products. Being Finnish really is a plus“ "Elovena as a brand fits well for these kinds of products. Oat products couldn't be Ranked as #1 by consumers more genuine than Elovena, the classic!" in plant-bas
Slide 37: Elovena attracts new consumers to the category
Elovena® attracts new consumers to the category • Sustainable, healthy and great tasting Finnish, gluten-free oat plant-based novelties Carbon neutral • Most-valued and known oat brand in production Finland Plant-based, • Increases penetration recyclable cartons • Drives category value Excellent tas
Slide 38: Strengthening the plant-based food category with Verso Food
Strengthening the plant-based food category with Verso Food 3.5.2023 Raisio’s Capital Markets Day 2021 38
Slide 39: Verso Food is now part of Raisio
• In Finland, Beanit® is the market leader in plant protein category • Raisio’s market share in the plant protein market in Finland is some 25% • The market growth in Finland was some 20%* in Verso Food is 2020 now part of • BCG expects the global plant protein market to grow at a pace of 14% annual
Slide 40: Plant-based food is a perfect strategic fit for Raisio
Plant-based food is a perfect strategic fit for Raisio Advanced production technology Joint International expansion product development More than the sum of parts B2B and B2C Joint sales channel marketing synergies Cross- branding 3.5.2023 Raisio’s Capital Markets Day 2021 40
Slide 41: Raisio is investing in R&D to ensure future competitiveness
Raisio is investing in R&D to ensure future competitiveness 3.5.2023 Raisio’s Capital Markets Day 2021 41
Slide 42: Innovations are implemented ideas increasing our value
In Raisio, innovations are implemented ideas increasing our value CONFIGURATION OFFERING EXPERIENCE Profit Product Product Customer Network Structure Process Service Channel Brand Model Performance System Engagement 3.5.2023 Raisio’s Capital Markets Day 2021 42
Slide 43: Driving execution of growth strategy in Healthy Food
How to drive the execution of Raisio’s growth strategy within the Healthy Food business? 3.5.2023 Raisio’s Capital Markets Day 2021 43
Slide 44: Focusing on three growth areas and expanding to new markets
Focusing on the three growth areas and expanding to new geographical markets Benecol® and plant stanol ester solutions Plant-based foods • Core and new categories Benecol® and • New, unique capabilities • Build Benecol® brand relevancy, especially plant stanol ester • Agile product development in Fi
Slide 45: Healthy Ingredients and Operations
Healthy Ingredients and Operations Virpi Aaltonen COO 3.5.2023 Raisio’s Capital Markets Day 2021 45
Slide 46: Raisio's B2B business in a nut shell
Raisio’s B2B business in a nut shell FISH FEEDS INGREDIENTS • Raisioaqua is an innovative • Benecol® licence partners Key markets for fish forerunner in fish feeds feeds: Finland and • Quality food ingredients made with • Baltic Blend® feed innovation is proven North-West Russia Finnish grains for B
Slide 47: Oat has a large untapped potential
Oat fibers have several health benefits, such as lowering cholesterol, keeping the blood sugar levels stable and Oat has improving gut well-being. a large untapped Nokia oat mill upgrade opened up potential promising domestic and export opportunities for gluten-free oat. 3.5.2023 Raisio’s Capital Ma
Slide 48: Sales of value added oats are accelerating
Sales of value added oats are accelerating B2B EXPORT SALES OF VALUE ADDED OATS NET SALES OF VALUE ADDED OATS IN FINLAND +178% +261% +310% +157% vrs Q1 2020 vrs Q1 2020 2019 2020 Q1 2021 2019 2020 Q1 2021 3.5.2023 Raisio’s Capital Markets Day 2021 48
Slide 49: Driving execution of growth strategy in Healthy Ingredients
How to drive the execution of Raisio’s growth strategy within the Healthy Ingredients business? 3.5.2023 Raisio’s Capital Markets Day 2021 49
Slide 50: Capturing growth potential in Healthy Ingredients
In the Healthy Ingredients business, we aim to capture the growth potential created by new capabilities and combinations Benecol® and plant stanol ester solutions Plant-based foods • B2B licensing, grow plant stanol ester Benecol® and • R&D into plant-based food solutions in non-competing markets pl
Slide 51: Operations
Operations 3.5.2023 Raisio’s Capital Markets Day 2021 51
Slide 52: Raisio's operations in a nut shell
Raisio’s operations in a nut shell 6 PRODUCTION SOURCING PARTNERS FACILITIES • Nokia mills oat and rye • Locally produced grains • Selected subcontracting • Raisio mills wheat and pasta are most important raw partners supporting in material for Raisio, 72% of special production • Raisio esterificati
Slide 53: Proudly presenting our new production facility at Raisio
Proudly presenting our new production facility at Raisio 3.5.2023 Raisio’s Capital Markets Day 2021 53
Slide 54: New site is focusing on plant-based solutions
New site is focusing on plant-based solutions • Specially planned to process wide range of plant-based raw materials • Producing drinkable and spoonable plant- based products • Free from gluten, milk, soya and nuts • High automation level secures superior product quality and full traceability • Sust
Slide 55: Nokia mill – carbon neutral, utilises oat hull as energy
Nokia mill – carbon neutral and utilises oat hull as an energy source 3.5.2023 Raisio’s Capital Markets Day 2021 55
Slide 56: Kauhava site assets and competence for fava bean processing
The Kauhava site has unique assets and competence for processing fava bean and extruding plant-based proteins for great-tasting products 3.5.2023 Raisio’s Capital Markets Day 2021 56
Slide 57: Operations support Healthy Growth Strategy and Good Food Plan
Operations play an important role in supporting our Healthy Growth Strategy and Good Food Plan CONTINUOUS CAPEX ROADMAP OPERATIONAL OPERATIONAL (e.g. supporting oat IMPROVEMENTS EFFICIENCY (e.g. efficiency and and plant-based (e.g. improving the work process improvements) innovations and and food sa
Slide 58: Combining technologies invested in unique way
In operations we can create totally new possibilities by combining our technologies invested in unique way Benecol® and plant stanol ester solutions • Plant stanol ester production, used in Benecol® and all Benecol® products plant stanol ester • New plant-based production facility solutions Plant-ba
Slide 59: Responsibility at the core of Raisio's strategy
Responsibility at the core of Raisio’s strategy Sari Koivulehto-Mäkitalo, CLO, Legal Affairs and Corporate Responsibility 3.5.2023 Raisio’s Capital Markets Day 2021 59
Slide 60: Raisio's Good Food Plan Themes
Raisio’s Good Food Plan Themes ENVIRONMENT & HEALTHY FOOD CLIMATE ACTION ENVIRONMENTALLY FRIENDLY PACKAGING FOOD SUSTAINABLE PROFESSIONALS FOOD CHAIN 3.5.2023 Raisio’s Capital Markets Day 2021 60
Slide 61: Extensive stakeholder analysis carried out in spring 2021
Extensive stakeholder analysis carried out in spring 2021 to find out our stakeholders’ expectations regarding Raisio’s sustainability work 3.5.2023 Raisio’s Capital Markets Day 2021 61
Slide 62: Key findings from the stakeholder survey in 2021
Key Findings from the stakeholder survey in 2021 ENVIRONMENTALLY FRIENDLY ENVIRONMENT & HEALTHY FOOD PACKAGING CLIMATE ACTION • Using whole grain in products • Recyclability of packaging • Measuring and reporting scope 3 • Reducing sugar in products • Minimisation of packaging material CO2 impacts •
Slide 63: Cooperation, impact assessment and positive actions required
Focusing on own impact is no longer enough in the 2020s – cooperation, impact assessment and positive actions are required across the board 3.5.2023 Raisio’s Capital Markets Day 2021 63
Slide 64: Updating the Good Food Plan for 2022–2025
Updating the Good Food Plan for 2022–2025 Raisio’s Capital Markets Day 2021
Slide 65: Selected UN Sustainable Development Goals for Good Food Plan themes
Selected United Nation’s Sustainable Development Goals for Raisio’s Good Food Plan themes ENVIRONMENTALLY FRIENDLY ENVIRONMENT & HEALTHY FOOD PACKAGING CLIMATE ACTION FOOD PROFESSIONALS SUSTAINABLE FOOD CHAIN 3.5.2023 Raisio’s Capital Markets Day 2021 65
Slide 66: Good Food Plan: Key targets 2022–2025
Good Food Plan: Key targets 2022–2025 Tackling Our own RECYCLABLE PACKAGES We will report our CLIMATE production will be CARBON NEUTRAL All our packaging will be recyclable value chain’s CO2 EMISSIONS CHANGE by the end of 2023 by the end of 2025 for 2022 80% of our products We promote the responsibi
Slide 67: Environmentally Friendly Packaging
Environmentally Friendly Packaging Key Objectives • All our packaging is recyclable by the end of 2025. We will increase the use of renewable and recycled material. • We aim constantly to reduce the amount of packaging plastic and materials. Our long-term goal is to reduce plastic packaging altogeth
Slide 68: Healthy Food
Healthy Food Key Objectives • At least 80% of our products will be healthy alternatives in their own categories by the end of 2025. • Raisio actively promotes a healthy and climate-friendly diet. • We will further increase the amount of plant-based products. Healthy alternatives 3.5.2023 Raisio’s Ca
Slide 69: Food Professionals
Food Professionals Key Objectives • We strive for an excellent employee experience: We enjoy our work and are proud to be part of the future of the international Raisio Group. • We support the healthy lifestyle and well-being of our employees. • We support diversity and inclusion by offering equa
Slide 70: Sustainable Food Chain
Sustainable Food Chain Key Objectives • We continue to develop the responsibility of our entire supply chain by assessing the human rights impacts of the supply chain and minimising the risks. • We minimise the negative environmental and climate impacts of our raw materials. • We nurture and promote
Slide 71: Environment & Climate Action
Environment & Climate Action Key Objectives • All Raisio's own production is carbon neutral by the end of 2023. • We will report the (scope 3) CO2 emissions of Raisio’s value chain for 2022 and set a timetable and targets to reduce them. • We will reduce food loss and waste as well as utilise produc
Slide 72: Our journey to carbon neutrality
Our journey to carbon neutrality 2008 2011 2015 2016 2017 2019 Carbon footprint Transition to First Responsibility Construction of Raisio industrial Responsibility Programme, label included in emissions-free Programme bioenergy plant starts area becomes goal of carbon-neutrality in products electric
Slide 73: Financial highlights of the strategy period
Financial highlights of the strategy period Mika Saarinen, CFO 3.5.2023 Raisio’s Capital Markets Day 2021 73
Slide 74: Historically, net sales and EBIT have been quite flat
Historically, Raisio’s net sales and EBIT have been quite flat NET SALES 2018–2020, EUR MILLION EBIT 2018–2020, EUR MILLION 236.3 233.6 25.6 27.3 27.7 228.2 +4% -1% +7% +1% 2018 2019 2020 2018 2019 2020 Healthy Food Healthy Ingredients Healthy Food Healthy Ingredients 3.5.2023 Raisio’s Capital Marke
Slide 75: Strong cash flow has enabled investments in healthy food business
Strong cash flow has enabled investments in healthy food business… CASH FLOW AND INVESTMENTS, EUR MILLION NET INTEREST BEARING DEBT, EUR MILLION 40 2018 2019 2020 34,7 0 35 30 28,5 -20 25 23,3 -40 19,5 20 -60 15 11,5 -80 10 -83 5,6 -100 5 -98,6 -120 0 -119,2 2018 2019 2020 -140 Cash flow Investments
Slide 76: …and strengthened our balance sheet
…and strengthened our balance sheet 2018 2019 2020 Net gearing -45.0 -36.4 -30.8 Equity ratio, % 81.7% 87.9% 85.7% Equity per share, EUR 1.68 1.72 1.71 Earnings per share, EUR 0.12 0.16 0.15 ROIC, % 8.1% 13.9% 11.1% 3.5.2023 Raisio’s Capital Markets Day 2021 76
Slide 77: Solid base for accelerating growth during the new strategy period
This creates a solid base for accelerating our growth during the new strategy period 3.5.2023 Raisio’s Capital Markets Day 2021 77
Slide 78: Estimated CAGR 2020–2025 for the three growth areas
Estimated annual growth rates (CAGR) in 2020–2025 for the three growth areas Total of all three growth areas +3% +7% Benecol® and EUR 157 million in 2020 plant stanol ester solutions +12% Value added oats and ingredients Plant-based foods +38%* * CAGR 2021–2025 due to lack of relevant comparison fig
Slide 79: Growth areas drive growth on Group level in 2020–2025
Growth areas drive the growth also on the Raisio Group level in 2020–2025 NET SALES DEVELOPMENT 2020–2025 • Growing the Group level net sales from CAGR EUR 234 million in 2020 by 5% annually +5% (CAGR) CAGR • Growth driven by the three growth areas +7 (+7% CAGR), while the rest of the business 234 r
Slide 80: Keeping our eyes open for targeted M&A
Keeping our eyes open for targeted M&A 3.5.2023 Raisio’s Capital Markets Day 2021 80
Slide 81: Desired features for an M&A target
Desired features for an M&A target – large enough and close to our core STRATEGIC FIT M&A takes a lot of work, so size does matter. Optimal net sales range for the target Acquired company needs to be company is between EUR 25–100 million ”a meaningful part” of Raisio still in 2030 We appreciate targ
Slide 82: Dividend policy and shareholder value creation
Dividend policy and shareholder value creation 3.5.2023 Raisio’s Capital Markets Day 2021 82
Slide 83: Aiming to pay an annual dividend of 50–100% of EPS
• Raisio’s dividend policy remains the same Aiming to pay • Despite focusing on growth, our an annual ambition is to continue as a good dividend of dividend payer and offer shareholders 50–100% of a good incentive for long-term earnings per ownership in Raisio share (EPS) Decisions regarding dividen
Slide 84: Aiming at predictable and shareholder-friendly distribution of profits
• Growth ambitions and required investments burden profitability in the Aiming at first years predictable and • Strong balance sheet enables shareholder- rewarding shareholders with extra friendly dividends and cancellation of treasury distribution of shares profits Decisions regarding dividends and
Slide 85: How to measure success?
How to measure success? 3.5.2023 Raisio’s Capital Markets Day 2021 85
Slide 86: Raisio's financial targets in 2022–2025
Raisio’s financial targets in 2022–2025 GROWTH PROFITABILITY Raisio aims for an average annual Raisio aims for an EBIT margin of net sales growth (CAGR) of 5% for >10% in 2025. the whole Raisio Group and 7% for the three growth areas. M&A activities carried out and investments in the new production
Slide 87: To summarise
• Financial strength • Promising growth prospects • Modern assets and capabilities • Brands & Innovations To summarise • Megatrends • Shareholder value creation 3.5.2023 Raisio’s Capital Markets Day 2021 87
Slide 88: Thank you!
Thank you! Food for Health, Heart and Earth. 3.5.2023 Raisio’s Capital Markets Day 2021 88
Slide 89: raisio.com
raisio.com