Emmi Ag · SIX:EMMN
Emmi — Investor Day (November 2015)
18 slides from Emmi's investor day presentation, Nov 3, 2015
Slide 1: Local anchoring, international orientation – Emmi Investor Day
Local anchoring, international orientation Emmi Investor Day Urs Riedener CEO Emmi Group Berne, 3 November 2015 Emmi today The economic environment Deliver on promise The importance of the branded business Results and learnings Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Gr
Slide 2: Emmi in brief / An impressive development story
Emmi in brief Net sales 2014 § CHF 3,404 million Net sales 2015 forecast* § approx. CHF 3,300 million Adjusted net profit 2014** § CHF 109.4 million Adjusted net profit margin 2014** § 3.2 % Employees (FTEs) § 5,300 Processed volume of milk and cream 2014 § 1700 million kilograms * according to fore
Slide 3: Our ambition / Organisational structure since 1 January 2014
Our ambition Emmi is … the number 1 in Switzerland … the worldwide number 1 for Swiss cheese … the leader for cold coffee drinks and Italian specialty desserts in Europa Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 5 Organisational structure since 1 January 2014 T
Slide 4: International expansion through subsidiaries and cooperations
§ International expansion through subsidiaries and cooperations Key production sites outside Switzerland USA: Platteville USA: Monroe Frankreich: Avignon Niederlande: Bergen Ger: Münchehofe, Dechow, Österreich: Nüziders Emmi Roth USA Emmi Roth USA Emmi Ambrosi AVH dairy trade B.V Gläserne Molkerei U
Slide 5: General economic environment / Weak global economy growth
General economic environment Disposable income under pressure €/CHF €/CHF €/CHF €/CHF 1.65 1.50 1.20 1.09 2007 2008 2009 2010 2011 2012 2013 2014 2015 financial crisis debt crisis currency war Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 9 Weak global economy grow
Slide 6: Bric countries – the fading stars / World dairy market
Bric countries – the fading stars Economic growth is below expectations Growth rate Brazil real GDP (%) Growth rate Russia real GDP (%) 10 6 8 4 6 2 4 0 2 2010 2011 2012 2013 2014 2015 -2 0 -2 2010 2011 2012 2013 2014 2015 -4 -4 -6 IMF Outlook Oct. 2010 IMF Outlook Oct. 2015 IMF Outlook Oct. 2010 IM
Slide 7: Low milk prices / Manufacturers look for profitable niches
Low milk prices Commodity markets under pricing pressure source: LTO Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 13 Manufacturers look for profitable segments/niches Comparison of Arla and bel Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi
Slide 8: Acquisitions of financially strong food companies become more expensive
Acquisitions of financially strong food companies become more expensive Overview of EBIT and sales multiples Period: 10/2014 – 09/2015 Empirical EBIT multiples Empirical sales multiples Chemical and materials Construction industry Computer hardware Computer software IT Internet and e-commerce Consum
Slide 9: What we promised to do
Emmi today The economic environment Deliver on promise The importance of the branded business Results and learnings Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 17 What we promised to do The strategic anchors and corresponding measures Strengthening of home market
Slide 10: What we actually did: product portfolio
What we actually did: product portfolio Strengthening of brand platforms The aim The results (2009 – 2014) § Reduce non-core business to § Kaltbach positioned as super-premium strengthen margins Swiss cheese specialty § Strengthen power brands (e.g. § Caffè Latte sales up 70 % Kaltbach, Caffè Latte)
Slide 11: What we actually did: international footprint
What we actually did: international footprint Selected growth in key markets The aim The results (2009 – 2014) § Strengthen international footprint § Position in Europe reinforced § Selective growth in key markets § Presence in new markets overseas § Increase local business abroad § Share of local p
Slide 12: Strategically relevant topics are managed on Group level
Strategically relevant topics are managed on Group level Current portfolio of strategic initiatives Initiative Main objective § Strategic Management "Operationalisation" of the strategy (Content & Tools) § Value Management Financial management using the EVA-Approach § OneERP Harmonisation and standa
Slide 13: Sales growth 2006 to 2014 and medium-term target
Sales growth 2006 to 2014 and medium-term target Desired 50/50 share delayed by the strength of the franc, but still realistic in CHF million 3404 3500 3298 2981 3000 2684 2721 2671 2619 2501 2500 2335 625 675 732 811 1139 1435 1516 587 45 % 50 % 2000 509 55 % 50 % 1500 1944 1952 1910 1842 1888 1909
Slide 14: Innovation: Jogurtpur (PureSwissYoghurt)
Innovation: Jogurtpur (PureSwissYoghurt) The yoghurt without hidden surprises Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 27 Knowing the international trends Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 28 14
Slide 15: Emmi YoQua – more than a yoghurt
Innovation: YoQua, the healthy yoghurt snack More than a yoghurt Emmi YoQua – more than a yoghurt With 8% protein and only 2% fat Available in four different flavours Plain Blueberry Raspberry Peach Emmi Investor Day 2015, Berne: Presentation of Urs Riedener, CEO Emmi Group page 29 Exploit the poten
Slide 16: Innovation in cheese: the Kaltbach range
Innovation in cheese: more difficult, but not impossible The Kaltbach range in Switzerland 1/1 wheel 32-35 kg 1/1 wheel 90-95 kg 1/1 wheel 6.2 kg Bag of 2 kg 1/1 wheel 6-6.5 kg 1/1 wheel. 4.2 kg ¼ wheel 8-8.75 kg / block block ¼ Laib 1,5-1,925 kg Portion 250g / NEW 125g Portion 250g / NEW 125g Porti
Slide 17: Summary: what we have learnt these past years
Summary What we have learnt these past years § The environment remains challenging è a resilient portfolio of businesses will be key § Switzerland is the backbone of the group, but increasingly challenging è we will continue to build the portfolio outside Switzerland § We had to reduce our dependenc
Slide 18: Summary / Questions & answers
Summary The essence of what works and what does not in international markets In Switzerland, Emmi is able to work as a full service provider. In the international markets the company develops brands, niches and premium position. When expanding internationally, you never buy a factory. You buy market