Raisio Plc Class K · OMXHEX:RAIKV
Raisio Plc Class K — H1 2017 Earnings Presentation
34 slides from Raisio Plc Class K's earnings presentation, Aug 9, 2017
Slide 1: Raisio's Half-Year Financial Report January-June 2017
Raisio’s Half-Year Financial Report January-June 2017 CEO Jarmo Puputti Raisio plc 9 August2017
Slide 2: Wellbeing for life: Raisio Group Businesses
Wellbeing for life Raisio Group Businesses RAISIO HEALTHY FOOD CONFECTIONERY An international Convenience Genuine taste An innovative success story & natural & familiar growth inspirer wellbeing brands
Slide 3: Raisio's Q2/2017 in brief
Raisio’s Q2/2017 in brief • Group net sales* 104.3 (124.1) M€ • Impact of the weaker pound on net sales some 3 M€ • Net sales for the comparison period include the loss- making UK snack bar business divested in July 2016 • Divestment of the Southall industrial property was an important deal for Rais
Slide 4: Highlights in Q2/2017
Highlights in Q2/2017 • Weaker pound decreased net sales and EBIT in the UK’s Benecol and confectionery businesses • In Benecol UK, increased production costs resulting from higher raw material prices and profitability impact of the weakening pound could not be compensated by price increases negotia
Slide 5: Group EBIT 2008-Q2/2017
Group EBIT 2008-Q2/2017 M€ 55 50 45 40 35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2/2017 Comparable EBIT, rolling 12 months 5
Slide 6: Group EBIT
Group EBIT M€ Comparable EBIT % 60 15 9.9% 11.6% 12.0% 50 10.4% 40 7.1% 10 7.0% 30 20 5 10 39.3 34.8 51.7 50.7 24.7 23.6 0 0 2013 2014 2015 2016 1-6/2016 1-6/2017 EBIT EBIT % 6
Slide 7: Group net sales
Group net sales M€ Comparable net sales 600 558 521 494 500 436 146 400 254 202 127 300 238 65 197 200 59 100 178 145 305 306 385 320 0 2013 2014 2015 2016 1-6/2016 1-6/2017 Brands Raisioagro 7
Slide 8: Group EBIT and net sales Q2
Group EBIT and net sales Q2 M€ Comparable EBIT % M€ Comparable net sales 20 15 150 12.1% 12.5% 15 10 100 10 15.0 124 13.1 5 50 104 5 0 0 0 Q2/2016 Q2/2017 Q2/2016 Q2/2017 EBIT EBIT % 8
Slide 9: Group EBIT by quarters
Group EBIT by quarters M€ Comparable figures 20 16.0 15.0 15 14.0 14.0 13.1 12.0 12.1 12.0 12.0 11.0 9.6 9.7 10.6 10 8.5 8.4 8.9 8.0 5.4 5 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 9
Slide 10: Group net sales by quarters
Group net sales by quarters M€ Comparable figures 200 149 142 150 150 128 133 127 135 131 117 123 114 124 118 123 93 104 103 95 100 50 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 10
Slide 11: Key figures, comparable income statement
Key figures, comparable income statement 4-6/ 4-6/ 1-6/ 1-6/ 2017 2016 2017 2016 2016 Net sales M€ 104.3 124.1 196.8 238.1 436.3 Change in net sales % -16.0 -12.3 -17.3 -9.8 -16.3 EBIT M€ 13.1 15.0 23.6 24.7 50.7 EBIT % 12.5 12.1 12.0 10.4 11.6 Depreciation and impairment M€ -2.8 -3.1 -5.4 -6.1 -11.
Slide 12: Key figures, balance sheet
Key figures, balance sheet 1-6/ 1-6/ 2017 2016 2016 Equity ratio % 68.3 61.4 66.8 Gearing % 1.8 19.7 8.5 Net-interest-bearing debt M€ 5.3 59.6 26.7 Equity per share € 1.87 1.92 1.99 Investments M€ 8.3 8.3 18.3 12
Slide 13: Benecol
— 3eneco Benec?
Slide 14: Benecol
Benecol • Net sales in Benecol business at the comparison period level without the pound conversion to euro • Net sales 31.1 (32.2) M€ • UK’s net sales increased in local currency • Benecol’s EBIT decrease from the comparison period due to: • Weakening of the pound’s exchange rate • Increased raw ma
Slide 15: Healthy food
Healthy food • Net sales increased by about 5% • Net sales 18.0 (17.1) M€ • Good sales development in Elovena products continued • Deliveries to the bakery industry increased • Net sales increased and EBIT improved in the Eastern European operations 15
Slide 16: Continued sales growth in Elovena snacks
Continued sales growth in Elovena snacks • Strong sales growth in snack biscuits continues • Sales has tripled in six years • Elovena Dark Chocolate snack biscuit is one of the best-selling biscuits in Finland • In the spring, Raisio’s extensive marketing campaign on the pleasure of eating boosted i
Slide 17: New brand Nordic to the Central European markets
New brand Nordic to the Central European markets • Starring Finnish oat • Product range with snack biscuits and porridges • Nordic launched in Poland, available in stores during the autumn • In July, a promotional campaign in the biggest beach event for bloggers in Poland 17
Slide 18: Confectionery
Confectionery • Net sales 24.1 (26.6) M€ • The Czech business continued its steady performance, in terms of net sales and EBIT • Sales growth in Pedro brand continued in the Czech Republic and Slovakia • UK’s net sales and EBIT clearly down from comparison period • Raisio continues solving operation
Slide 19: Brand Division's EBIT and net sales Q2
Brand Division’s EBIT and net sales Q2 M€ Comparable EBIT % M€ Comparable net sales 15 16.1% 16.9% 20 100 15 80 10 60 14.2 10 12.3 40 88 5 73 5 20 0 0 0 Q2/2016 Q2/2017 Q2/2016 Q2/2017 EBIT EBIT % 20
Slide 20: Brand Division's EBIT by quarters
Brand Division’s EBIT by quarters M€ Comparable figures 20 15.8 14.3 14.2 15 13.9 13.8 11.3 11.4 12.0 11.1 12.3 10.810.8 11.1 10.6 9.4 10.0 10 8.2 6.4 5 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 21 21
Slide 21: Brand Division's net sales by quarters
Brand Division’s net sales by quarters M€ Comparable figures 150 94 98 96 98 100 90 88 85 78 75 72 72 78 74 73 73 76 73 68 50 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 22 22
Slide 22: Raisioagro
Slide 23: Raisioagro
Raisioagro • Net sales 34.3 (37.7) M€, -9% • Planned sales reduction in low-margin farming supplies • Fish feed season started later than usual due to cold spring • Net sales in grain trade increased • Fast restructuring of milk farms continued • Demand for cattle feeds focused on the products of lo
Slide 24: Russia invests in milk production
Russia invests in milk production Over 3 million cows in Russia Avg. production /cow in Northwestern federation 233,000 cows Russia 4,500 (in Finland 8,800) litres / year Number of dairy farms Volga federation 965,000 cows in Finland Central federation 724,000 cows 25
Slide 25: Raisioagro's EBIT and net sales Q2
Raisioagro’s EBIT and net sales Q2 M€ Comparable EBIT M€ Net sales 5 5 50 3.8% 3.7% 4 4 40 3 3 30 2 2 20 38 34 1 1 10 1.4 1.3 0 0 0 Q2/2016 Q2/2017 Q2/2016 Q2/2017 EBIT EBIT % 26
Slide 26: 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 1.3 1 0.1 0.0 0.0 0.0 0.0 0.0 0 -0.3 -0.3 -0.6 -1 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 27
Slide 27: Raisioagro's net sales by quarters
Raisioagro’s net sales by quarters M€ 80 76 71 63 54 54 53 49 45 38 40 36 40 33 34 37 27 24 28 25 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 28
Slide 28: Raisio revised its 2017 outlook on 21 July 2017
Raisio revised its 2017 outlook on 21 July 2017 For the full year 2017, Raisio estimates its comparable EBIT to be approximately EUR 45 million. The outlook revision was due to the prolonged commercial and production challenges, lower than expected profitability and the weakening of the pound agains
Slide 29: Wellbeing for life: renewed strategy 2017-2022
Wellbeing for life Raisio’s renewed strategy 2017 – 2022 Investments in brands • Developing the brands with consumer insight • Activity in social media New markets Digital solutions • Benecol and Nordic brands to Central Europe • Wellbeing • Oat ingredients export globally • E-commerce • Feeds to Ru
Slide 30: Core of the Raisio Group's renewed strategy
Core of the Raisio Group’s renewed strategy • An international brand company • Products and services promoting wellbeing and profitable growth • Plant-based, healthy and responsible foods, and feeds that meet consumer and customer needs • Determined expansion into new markets and new product categor
Slide 31: Raisio Group's organic growth
Raisio Group’s organic growth • Benecol • New home markets in Europe • Securing sterol procurement • Novelties faster to the markets • Confectionery • The UK unit’s turnaround • Growth in own branded products in the Czech Republic • Healthy Food • New product categories and markets • Novelties faste
Slide 32: Growth through acquisitions
Growth through acquisitions Company size • Net sales 50-80 M€, EBIT 10-15% • Or few smaller startups with great future potential Company type • Already profitable business (with growth potential) or promising start-ups • Brands, knowhow, innovations High level Medium level Not interested of interest
Slide 33: Mission: Raisio makes your world better
Mission Raisio makes your world better. 34
Slide 34: Vision
Vision We enhance wellbeing and strive for sustainable growth with the most desired brands. Raisio is a great place to work. 35