Slide 1: Raisio's Interim Report January-March 2017
Raisio’s Interim Report January-March 2017 CEO Jarmo Puputti Raisio plc 10 May 2017
Slide 2: Raisio Group
Raisio Group ee cl ECOLOGICAL FORERUNNER Listed on the/Helsinki BA 5 Net oe 43 6 ME 201 STOCK.EXCHANGE Operations alata) 10 consecutive years of ind 2 1,400 cou 5 1 M€* DIVIDEND GROWTH employees || * comparable EBIT oe Benecol” ® || RAlsIOconfectiofery | RAISIO agro NATURALLY An INTERNATIONAL]! GENU
Slide 3: Raisio Q1/2017 in brief
Raisio Q1/2017 in brief • Group EBIT* 10.6 (9.7) M€ • 11.4 (8.5)% of net sales • Group net sales 92.5 (114.0) M€ • Divestment of the loss-making UK snack bar business decreased net sales and improved profitability • Brands Division EBIT 12.0 (11.4) M€ • 16.6 (12.6)% of net sales • Organic growth for
Slide 4: Highlights Q1/2017
Highlights Q1/2017 • The weaker pound decreased net sales and EBIT in the UK’s Benecol and confectionery businesses • Benecol’s price increases in the UK retail trade did not fully compensate the negative effects of the currency and raw material price increases • Profitability of the UK confectioner
Slide 5: Group EBIT 2008-Q1/2017
Group EBIT 2008-Q1/2017 M€ 55 50 45 40 35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1/2017 Comparable EBIT, rolling 12 months 5
Slide 6: Group EBIT and net sales Q1
Group EBIT and net sales Q1 M€ Comparable EBIT % M€ Net sales 15 15 120 11.4 % 8.5 % 100 10 10 80 60 114 5 9.7 10.6 5 40 93 20 0 0 0 Q1/2016 Q1/2017 Q1/2016 Q1/2017 EBIT EBIT % 6
Slide 7: Group EBIT by quarters
Group EBIT by quarters M€ Comparable figures 20 16.0 15.0 15 14.0 14.0 12.0 12.1 12.0 12.0 11.0 10.6 10 9.6 9.7 8.0 8.5 8.4 8.9 5.4 5 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 7
Slide 8: Group net sales by quarters
Group net sales by quarters M€ 200 149 142 150 150 135 128 133 127 131 117 123 114 124 118 123 93 103 95 100 50 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 8
Slide 9: Key figures, comparable income statement
Key figures, comparable income statement Q1/ Q1/ 2017 2016 2016 Net sales M€ 92.5 114.0 436.3 Change in net sales % -18.9 -6.9 -16.3 EBIT M€ 10.6 9.7 50.7 EBIT % 11.4 8.5 11.6 Depreciation and M€ -2.6 -3.1 -11.3 impairment EBITDA M€ 13.1 12.7 62.0 Financial items M€ 0.0 -0.9 -2.2 Earnings per share
Slide 10: Key figures, balance sheet
Key figures, balance sheet Q1/ Q1/ 2017 2016 2016 Equity ratio % 66.6 58.7 66.8 Gearing % 17.3 14.7 8.5 Net-interest-bearing debt M€ 50.9 46.6 26.7 Equity per share € 1.86 2.02 1.99 Investments M€ 3.9 4.0 18.3 10
Slide 11: Benecol
— eneco ) lea
Slide 12: Brand Division's EBIT and net sales Q1
Brand Division’s EBIT and net sales Q1 M€ Comparable EBIT % M€ Net sales 15 20 100 16.6 % 12.6 % 15 80 10 60 10 12.0 90 5 11.4 40 72 5 20 0 0 0 Q1/2016 Q1/2017 Q1/2016 Q1/2017 EBIT EBIT % 12
Slide 13: Brand Division's EBIT by quarters
Brand Division’s EBIT by quarters M€ Comparable figures 20 15.8 15 14.3 14.2 13.9 13.8 12.0 11.3 11.4 11.1 11.1 10.8 10.8 10.0 10.6 10 9.4 8.2 6.4 5 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 13
Slide 14: Brand Division's net sales by quarters
Brand Division’s net sales by quarters M€ 150 100 94 98 96 98 90 88 85 75 72 78 74 73 76 78 73 72 68 50 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 14
Slide 15: Benecol
Benecol • In the UK, Benecol® improved its market position in minidrinks. Sales volume in spreads decreased as the entire category declined • Net sales reduction due to lower plant stanol ester deliveries, the declined sales volume for spreads in the UK and the currency • Benecol maintained its mark
Slide 16: Benecol is the most preferred cholesterol lowering food brand
Benecol is the most preferred cholesterol lowering food brand with superior availability Across different food Online and offline Through out the different categories retailers occasions 9.5.2017 16
Slide 17: Healthy Snacks
Healthy Snacks • Net sales up by almost 10% • Good sales development for Elovena products continued, +15% • Increased rye and wheat flour deliveries to the bakery industry • Sales volume for Nordic flakes increased in Russia • New Provena products launched in Russia 17
Slide 18: Elovena expanding into new product categories
Elovena expanding into new product categories Sales in Elovena products have tripled in ten years 18
Slide 19: Elovena ice cream snack
Elovena ice cream snack • Lactose-free • Rich in fibre • Oaty snack biscuit • Biscuit-like snack ice cream combines a snack biscuit with full-flavoured, lactose-free ice cream • Flavours: vanilla and wild berries 19
Slide 20: Confectionery
Confectionery • Good performance of the Czech confectionery business continued • Pedro is a well-known brand in Czech and Slovakian markets • Net sales and EBIT for the UK confectionery business down from the comparison period • Challenges with the UK Leicester production continued • Sales decreased
Slide 21: Pedro's sales growth continued
Pedro’s sales growth continued 21
Slide 22: Slide 22
Slide 23: Raisioagro's EBIT and net sales Q1
Raisioagro’s EBIT and net sales Q1 M€ Comparable EBIT M€ Net sales 1 50 40 0.0 0,0 30 0 -0.3 20 10 27 24 -1 0 Q1/2016 Q1/2017 Q1/2016 Q1/2017 EBIT 23
Slide 24: Raisioagro's EBIT by quarters
Raisioagro’s EBIT by quarters M€ Comparable EBIT 3 2.6 2.3 2.0 2 1.3 1.4 1.4 1.4 1.3 1 0 0.0 0.1 0.0 -0.3 0.0 0.0 0.0 -0.3 -0.6 -1 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 24
Slide 25: Raisioagro's net sales by quarters
Raisioagro’s net sales by quarters M€ 80 76 71 63 54 54 53 49 45 38 40 40 37 36 33 27 28 24 25 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 25
Slide 26: Raisioagro
Raisioagro • Fast restructuring of milk farms continued in Finland • Demand for cattle feeds focused on products with lower added value • Sales volume at the year-end level, down from the comparison period • Raisioagro did not engage in price competition • Milking robot monitoring (Tuotostutka®) in
Slide 27: Norra horse feeds
Norra horse feeds • High-quality horse feeds for the Finnish conditions • Health and welfare of horses and the prevention of diseases at the heart of Norra feeds • Norra Sankari – a Finnhorse feed was launched to honour the Finnhorse’s 110th anniversary • Part of the feed proceeds will be donated to
Slide 28: In 2010, fish accounted for 6.5% of protein for the population globally
▶ In 2010, fish accounted for 6.5% of protein for the population globally and the proportion is growing all the time. Growth is based on aquaculture. ▶ Global aquaculture production estimated to grow 35% by 2022 (now 182 million tonnes). ▶ EU is the world’s largest fish importer. More than half of t
Slide 29: Expansion of the fish feed factory will increase quality and capacity
Expansion of the fish feed factory will increase the quality and capacity • Investment value about EUR 4 million • Faster delivery times • Significant savings in energy consumption • Enables growth in exports 29 29
Slide 30: Unique comprehensive service package
UNIQUE COMPREHENSIVE SERVICE PACKAGE Feed Local, development, Domestic, Feeding International expertise High-quality production and eco-efficient feeds 30
Slide 31: Guidance 2017
Guidance 2017 In 2017, Raisio will invest in brands, product concepts, sales and marketing and in the enhancement of its operations. This will pave the way for future growth and success. Raisio estimates its comparable EBIT for 2017 to fall slightly short of comparable EBIT for 2016. Exchange rates
Slide 32: Wellbeing for life
Wellbeing for life Raisio’s renewing business strategy 2017 – 2022 Investments in brands • Developing the brands with consumer insight • Operational excellence New markets Digital solutions • Benecol and Nordic brands to Central Europe • Wellbeing • Oat ingredients export globally • E-commerce • Fee
Slide 33: Raisio's renewing business strategy for profitable growth
Raisio’s renewing business strategy for profitable growth Profitable growth M&A Digital solutions and online store New markets and sales channels Brand development and brand communication Agile product development and innovations CONSUMER INSIGHT OPERATIVE EXCELLENCE (LEAN) VALUES AND CULTURE EMPLOY
Slide 34: Thank you!
THANK YOU!