Aryzta Ag · SIX:ARYN
Aryzta — Q1 FY2011 Earnings Presentation
32 slides from Aryzta's earnings presentation, Nov 29, 2010
Slide 1: Q1 Trading Update, FY 2011
ARYZTA AG Q1 Trading Update, FY 2011 29 November 2010
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking
Slide 3: Agenda
Agenda – Our Business – FY 2010 Recap – Q1 FY 2011 Financial Overview – Q1 FY 2011 Operating Environment – Outlook 3 © ARYZTA, November 2010
Slide 4: Our Business
ARYZTA AG Our Business 4 © ARYZTA, November 2010
Slide 5: Our Business
Our Business – Zurich based Swiss AG > Operations in Europe, North and South America, South East Asia, Australia and New Zealand – Created in 2008 – merger of Hiestand and IAWS August 2008 – Primary listing in Zurich (SIX; ARYN), and secondary listing in Dublin (ISE; YZA) – Holds 71.4 % of Origin En
Slide 6: Corporate Structure ARYZTA AG
Corporate Structure ARYZTA AG ARYZTA AG Food Europe Food North America Food Rest of World Origin Key Bakery Business Brands Key Bakery Business Brands Key Bakery Business Brands Origin 71.4 % Holding Hiestand La Brea Bakery Hiestand Origin Cuisine de France Otis Spunkmeyer Fresh Start Bakeries – Pen
Slide 7: Geographic Reach – Food Group
Geographic Reach – Food Group Pro Forma Revenue1 (Including Fresh Start Bakeries, Great Kitchens & Maidstone Bakeries) EUR 2.5 bn Food Europe Food North America 46% 48% Food Rest of World 6% 1 Pro forma TTM revenue to July 2010 includes acquisitions of Fresh Start Bakeries and Great Kitchens, transl
Slide 8: Global Customer Channel Mix – Food Group
Global Customer Channel Mix – Food Group Pro Forma Revenue1 (Including Fresh Start Bakeries, Great Kitchens & Maidstone Bakeries) EUR 2.5 bn Quick Service Restaurant Other Foodservice 32% 24% Convenience &Independent Retail 20% Large Retail 24% Pro Forma Revenue1 (Including Fresh Start Bakeries, Gre
Slide 9: Global Product Mix – Food Group
Global Product Mix – Food Group Pro Forma Revenue1 (Including Fresh Start Bakeries, Great Kitchens & Maidstone Bakeries) EUR 2.5 bn Sweet Baked Goods& Morning Goods Bread Rolls&Artisan Loaves 33% 46% Savoury&Other 21% Pro Forma Revenue1 (Including Fresh Start Bakeries, Great Kitchens & Maidstone Bak
Slide 10: Our Markets – Food Europe
Our Markets Food Europe Food Europe has market positions in speciality baking in Switzerland, Germany, Poland, the UK, Ireland, France, Sweden and Spain. ARYZTA has a mixture of business to business and consumer brands including Hiestand, Cuisine de Pro Forma Key Figures1 Geographical Footprint (Inc
Slide 11: Our Markets – Food North America
Our Markets Food North America Food North America has market positions in speciality baking in the United States and Canada. ARYZTA has a mixture of business to business and consumer brands including Otis Spunkmeyer, La Brea Bakery, Fresh Start Bakeries, Pennant Foods, Sweet Life, Great Kitchens and
Slide 12: Our Markets – Food Rest of World
Our Markets Food Rest of World ARYZTA has embryonic speciality Pro Forma Key Figures1 Geographical Footprint bakery businesses in Japan, (Including Fresh Start Bakeries, Great Kitchens&Maidstone Bakeries) Malaysia, Brazil, Australia and New Zealand, with joint venture Revenue EBITDA EBITA Bakeries2
Slide 13: Origin 71.4% Holding
Origin 71.4 % Holding Origin ARYZTA AG is the majority shareholder (71.4 %) in Origin Enterprises plc, which has a listing on the AIM in London and the ESM in Dublin (AIM:OGN, ESM:OIZ). As of 25 November 2010, Origin had a market capitalisa- tion of €439m (133m shares at €3.30), valuing ARYZTA’s hol
Slide 14: FY 2010 Recap
ARYZTA AG FY 2010 Recap 14 © ARYZTA, November 2010
Slide 15: ARYZTA AG Income Statement FY 2010
ARYZTA AG Income Statement FY 2010 in Euro ’000 July 2010 July 2009 % Group revenue 3,009,726 3,212,270 (6.3) Group operating profit1 272,973 280,409 (2.7) Share of associates and JVs2 31,613 17,525 Operating profit incl. associates and JVs1 304,586 297,934 2.2 Finance cost, net (51,485) (50,652) Pr
Slide 16: Underlying Revenue Growth FY 2010 – ARYZTA AG
Underlying Revenue Growth FY 2010 – ARYZTA AG Food N. Food Total in Euro million Food Europe America Rest of World Food Group Origin1 Total Group revenue 1,072.0 571.6 35.8 1,679.4 1,330.3 3,009.7 Underlying growth (8.2) % (4.3) % 8.4 % (6.7) % (10.8) % (8.6) % Acquisitions3 2.0 % 8.4 % 57.2 % 4.8 %
Slide 17: ARYZTA AG Segmental Profit FY 2010
ARYZTA AG Segmental Profit FY 2010 in Euro ’000 July 2010 July 2009 % Food Group1 Food Europe 131,245 135,103 (2.9) Food North America 69,911 67,481 3.6 Food Rest of World 5,963 2,123 180.9 Total Food Group 207,119 204,707 1.2 Origin 65,854 75,702 (13.0) Total Group 272,973 280,409 (2.7) Associates
Slide 18: Food Group Cash Generation FY 2010
Food Group Cash Generation FY 2010 in Euro ’000 July 2010 July 2009 EBIT 160,252 161,724 Amortisation 47,450 42,983 EBITA1 207,702 204,707 Depreciation 60,363 54,628 EBITDA 268,065 259,335 Working capital movement from debt factoring 21,554 – Working capital movement 3,264 24,675 Dividends received2
Slide 19: Food Group Net Debt and Investment Activity FY 2010
Food Group Net Debt and Investment Activity FY 2010 in Euro ’000 Food Group Food Group opening net debt as at 31 July 2009 (505,504) Cash flows generated from activities 251,018 Cost of acquisitions (incl. transaction costs and net debt acquired) (860,313) Share placement 115,001 Investment capital
Slide 20: Food Group Financing Facilities
Food Group Financing Facilities Description Principal 1 Maturity 2 May 2010 – Syndicated Bank Loan CHF 600m Dec 2014 May 2010 – US Private Placement USD 420m/EUR 25m May 2013 – May 2022 Dec 2009 – US Private Placement USD 200m Dec 2021 – Dec 2029 Nov 2009 – Swiss Bond CHF 200m March 2015 Jun 2007 –
Slide 21: Q1 FY 2011 Financial Overview
ARYZTA AG Q1 FY 2011 Financial Overview 21 © ARYZTA, November 2010
Slide 22: ARYZTA AG – Q1 FY 2011 Results
ARYZTA AG – Q1 FY 2011 Results 13 weeks ended 30 October 2010 Food Food N. Rest of Total in Euro million Food Europe America World Food Group Origin1 Total Group revenue 289.7 299.9 42.3 631.9 338.9 970.8 Underlying growth (2.4)% (1.4)% 18.5% (1.7)% 1.8% (0.2)% Acquisitions 7.4% 117.0% 527.3% 51.3%
Slide 23: Maidstone Bakeries Acquisition and Hybrid Funding
Maidstone Bakeries Acquisition and Hybrid Funding – Acquisition of outstanding 50% of Maidstone Bakeries > Consideration of EUR 335m1 > Closed October 2010 – Full consolidation of Maidstone Bakeries > No longer treated as associate – CHF 400m Hybrid with 5% coupon funded in October 2010 > 500bps ste
Slide 24: Fair Value Gain on Maidstone Acquisition
Fair Value Gain on Maidstone Acquisition – A non cash gain on 50% Maidstone Bakeries previously owned to be recorded in H1 (under revised IFRS 3 implemented as required for the year ended 31 July 2010) > Expected to be c. EUR 120m1 based on multiple of 10.2 x EBITDA (subject to independent valuation
Slide 25: Q1 FY 2011 Operating Environment
ARYZTA AG Q1 FY 2011 Operating Environment 25 © ARYZTA, November 2010
Slide 26: Food Europe – Q1 FY 2011
Food Europe – Q1 FY 2011 – Revenue growth of 8.1% with acquisition contribution of 7.4% – Underlying revenue declined 2.4% – UK and Ireland > Revenue decline moderating > Supporting customers to reposition value proposition - Value oriented innovation - Investment in training and support - Execution
Slide 27: Food North America – Q1 FY 2011
Food North America – Q1 FY 2011 – Revenue growth of 125.1% with acquisition contribution of 117.0% – Underlying revenue declined 1.4% – Continued investment in product innovation – Continued focus on ATI – Focus on unlocking full potential of enlarged US bakery business with pro forma revenue of USD
Slide 28: Food Rest of World – Q1 FY 2011
Food Rest of World – Q1 FY 2011 – Revenue growth of 569.9% with acquisition contribution of 527.3% – Underlying revenue growth of 18.5% – Further investment (USD 48m) in Asia and Latin America to service the quick service restaurant segment > Acquisitions of bakeries in Taiwan, Singapore and Malaysi
Slide 29: Origin – Q1 FY 2011
Origin – Q1 FY 2011 – Released Q1 FY 2011 trading update 22 November 2010 (available on www.originenterprises.com) – Strategically repositioned > Strategic transactions involving Marine Protein and Oils and Food businesses > Exclusive focus on sustainable agricultural model > Balance sheet strengthe
Slide 30: Primary Food Inflation
Primary Food Inflation – Re-emergence of inflation / volatility for primary food products – Responsive pricing – ongoing trend – Value conscious consumer – Bakery offers compelling food value proposition 30 © ARYZTA, November 2010
Slide 31: FY 2011 Summary and Outlook
FY 2011 Summary and Outlook – Revenue growth underpinned by strategic acquisitions – Target EPS growth of 45 cents from acquisition still seems reasonable – Opportunity to unlock potential across enlarged customer base > Integration projects underway in Europe and North America > Ongoing investment
Slide 32: Investor Information
Investor Information Company Contact Hilliard Lombard Head of Group Finance and Communications ARYZTA AG Talacker 41 8001 Zurich Switzerland Tel: +41 (0) 44 583 42 00 Fax: +41 (0) 44 583 42 49 info@aryzta.com www.aryzta.com 32 © ARYZTA, November 2010