Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — Investor Presentation (August 2017)
28 slides from Hkfoods Oyj Class A's investor presentation, Aug 28, 2017
Slide 1: From Farm to Fork Strategy
From Farm to Fork Strategy Jari Latvanen 28 August 2017 1
Slide 2: Introduction
Introduction Our strategy is to focus on the consumer by leading the food value chain through innovation and renewal. The strategy positions us uniquely within the Nordic food industry. New Nordic operating model, including appointments in the Group Leadership Team, in effect since June 1st, enables
Slide 3: Our mission
Our mission film From Farm to Fork Strategy 3 28.8.2017
Slide 4: Farm to Fork: active food value chain leadership
Our From Farm to Fork strategy is a holistic approach to active food value chain leadership. It has a strong focus on consumers. It emphasises innovation, cost competitiveness and sustainability. Our strategy validates our mission to make daily life tastier for consumers and customers – both today a
Slide 5: From Farm to Fork – strategy highlights
From Farm to Fork –strategy highlights In collaboration with One Nordic Team Strengthen market consumers and enables leveraging position in the Nordic farmers, innovate and capabilities and home markets and sustainably produce, concepts to capture explore export tasty, premium food the commercial op
Slide 6: From Farm to Fork strategy
From Farm to Fork strategy Mission Vision Playing field Categories and brands Markets and channels Competitive Edge From Farm to Fork Must-Win Battles Continue Cooperate with our Drive efficiency and Leadership in Focus on Meat Poultry growing Meals farming community cost competitiveness business On
Slide 7: We lead the food value chain and emphasise the consumer
We lead the food value chain and emphasise the consumer LEADING INNOVATIONS COLLABORATION QUALITY CHANNEL PARTNERSHIPS FARMER CONSUMER SUSTAINABILITY OPERATIONAL CAPABILITIES From Farm to Fork Strategy 7 28.8.2017
Slide 8: We have rich sources of insight about consumer lifestyles and shopping baskets
We have rich sources of insight about consumer lifestyles and shopping baskets Attitudes to Food, Consumption Occasion Specific Shopping Cooking & Meat Behaviour Behaviour Behaviour From Farm to Fork Strategy 7 28.8.2017
Slide 9: We stress high quality and sustainability
We stress high quality and sustainability Quality Sustainability • We set high quality standards in • Our requirements for high quality everything we do are directly linked to sustainability and we want to become the benchmark in sustainability • By setting the bar high and striving for it, we can r
Slide 10: We innovate to meet consumer demand
We innovate to meet consumer demand • Our innovation builds on our high standards for product quality • We will continuously develop consumer insight which will guide our innovation efforts • In addition, we will combine our innovation efforts with close collaboration with our customers to be able t
Slide 11: We are partnering with the farming community
We are partnering with the farming community • Commercial innovations and product quality are directly linked with our farmers • We never sacrifice our standards for sustainability or animal welfare • We will group farmer partnerships based on set of features to secure our product quality and differ
Slide 12: We are building an efficient and sustainable operations network
We are building an efficient and sustainable operations network • Due to current gap versus best in class, cost efficiency will not become a key competitive edge for us in short-term • We need to make several efforts to close the efficiency gap that we have • We will improve our on-site productivity
Slide 13: We emphasise channel collaboration
We emphasise channel collaboration • To reach our consumers and support new innovation, we emphasise channel collaboration • We will do this e.g. by, joint product development, joint business planning, measuring our performance with profitability metrics • In addition, we will expand our route to ma
Slide 14: We aim to expand our playing field
We aim to expand our playing field to reach a leading market position and presence in key sales channels in our Nordic home markets. We will develop international growth avenues, and build a stronger position in upper mainstream and premium meats.
Slide 15: We strengthen our market leader position in home markets
We strengthen our market leader position in home markets HKScan’s net sales 2016 Net sales and market development direction of main categories in HKScan home markets 2016 International and Biotech 6% Baltics 8% Denmark Sweden 6% 41% Finland 39% Red meat Poultry Sausages Cold cuts Meal components Str
Slide 16: We focus on Meat and redefine Meals business
We focus on Meat and redefine Meals business Meat is the largest part of our business MEAT Our aim is to revitalise the meat category and bring the Focus on meat allows pride back us to also develop sausages and cold We capitalise on the growth trend and aim for leading cuts position in poultry MEAL
Slide 17: Growth opportunities in international markets with a focus on Asia
We see growth opportunities in international markets with a focus on Asia 17
Slide 18: Must Win Battles to reach our objectives
Must Win Battles to reach our objectives • Invest in new concepts, products and sustainability • Differentiate with high quality Focus on Meat and full control of the value chain • Build a position closer to consumers • Secure High quality raw material Cooperate with • Commercial innovation and our
Slide 19: Our new operating model offers capability for renewal
Our new operating model offers capability for renewal. It strengthens our way of working effectively as one Nordic team and it enables us to execute our strategy in a cost-competitive manner.
Slide 20: We operate as one Nordic team
We operate as one Nordic team – Our structure supports the strategy CATEGORIES & MARKET AREAS OPERATIONS CONCEPTS CUSTOMERS & CONSUMERS Finland FARMERS & SUPPLIERS Sweden Baltics Denmark International & Biotech
Slide 21: Group Leadership Team leads the transformation and strategy execution
Group Leadership Team leads the transformation and strategy execution Jari Latvanen Jyrki Karlsson Sofia Hyléen Anne Mere Svend Schou Borch Jukka Nikkinen President and CEO EVP Market Finland Toresson EVP Market Baltics EVP Market Denmark EVP Market EVP Market Sweden International & Biotech Aki Laih
Slide 22: We have a professional and dedicated Board of Directors
We have a professional and dedicated Board of Directors Mikko Nikula Marko Onnela Per Olof Nyman Riitta Palomäki Chairman of the Board, Deputy chairman of the Board, Member of the Board, Member of the Board, M.Sc. (Physics) M.Sc. (Agriculture) M.Sc. (Industrial & Management M.Sc. (Econ.) Farm entrep
Slide 23: We have stable and dedicated owners with a long-term view
We have stable and dedicated owners with a long-term view to developing the food value chain from Farm to Fork Shares, % THROUGH OUR 35 OWNERSHIP 52 WE HAVE A DIRECT CONNECTION 7 6 WITH CLOSE TO Votes, % 2 19 39 000 FARMS 10 69 IN SWEDEN AND FINLAND LSO Osuuskunta Lantmännen Sveriges Djurbönder Othe
Slide 24: Our values drive how we work together
Our values drive how we work together, both internally and externally INSPIRE LEAD CARE food passions the way in meat Help people make better choices From Farm to Fork Strategy 24 28.8.2017
Slide 25: We are building our way towards reaching financial targets
We are building our way towards reaching financial targets SALES IMPROVEMENT MEASURES PROFIT IMPROVEMENT MEASURES From Farm to Fork based A. Impact from growth EBIT innovation and renewal in: - Operating leverage from higher A volumes Meals - Impact from better pricing B Poultry B. Improved efficien
Slide 26: Long-term financial targets remain unchanged
Long-term financial targets remain unchanged Operating profit (EBIT) Net gearing 4% <100% of net sales Return on capital Dividends employed (ROCE) 12% 30% of net profit From Farm to Fork Strategy 26 28.8.2017
Slide 27: From Farm to Fork strategy
From Farm to Fork strategy INSPIRE Mission Vision CARE Playing field Categories and brands Markets and channels Competitive Edge LEAD From Farm to Fork Must-Win Battles Cooperate with our Drive efficiency and Leadership in Continue growing Focus on Meat farming community cost competitiveness Poultry
Slide 28: Thank you!
Thank you!