Slide 1: Interim Report for January–March 2012
Lännen Tehtaat plc INTERIM REPORT FOR JANUARY – MARCH 2012 Press Conference for Analysts and Media 4 May 2012 at 10.00 am Scandic Simonkenttä Matti Karppinen CEO
Slide 2: Lännen Tehtaat Group
Lännen Tehtaat Group Frozen Foods Seafood Grains and Other Operations Oilseeds Lännen Tehtaat plc Group management Apetit Suomi Oy Caternet Finland Oy Associated companies: Sucros Ltd (20%) Associated Ateriamestarit Oy company: (50%) Taimen Oy (30%) Lännen Tehtaat plc Interim Report Q1 2012 2
Slide 3: Mission, vision and targets
Lännen Tehtaat Mission, vision and targets Mission To offer consumers healthy and tasty food products which are based on locally produced raw materials. We provide added value for our shareholders on a long-term basis. Vision To be one of the leading Finnish food companies operating across the north
Slide 4: Key figures Q1/2012
Lännen Tehtaat Key figures Q1/2012 EUR million Q1/ Q1/ Q1-Q4/ Change 2012 2011 2011 Net sales 79,4 84,0 -5 % 335,5 Operating profit, excl.non-recurring items -0,5 0,8 9,8 Operating profit -0,6 0,8 8,7 Profit before taxes -0,7 0,5 7,5 Profit -0,7 0,2 5,7 EPS, € -0,09 0,04 0,92 Equity ratio, % 64,0 68
Slide 5: Operating profit, excl. non-recurring items
Operating profit, excl. non-recurring items EUR mill. 12 9,8 10 8 6 4,6 2011FY 4 2,1 2,3 2011 2 0,8 0,8 2012 0 -0,5 -0,5 -2 Cumulative Q1 Q2 Q3 Q4 • The Group acquired Caternet Finland Oy during the first quarter; EUR -0.5 million in transaction expenses related to this acquisition are included in t
Slide 6: Operating profit, excl. non-recurring items: change Q1/2012 vs Q1/2011
Operating profit, excl. non- recurring items Change – Q1/2012 vs. Q1/2011 EUR mill. -0,1 0,1 -0,3 0,8 - 1,1 -0,5 Q1 2011 Other Frozen Seafood Grains and Q1 2012 Total Operations Food Oilseeds Total • In the Frozen Foods business the operating profit, excluding non-recurring items was unchanged. • Th
Slide 7: Frozen Foods Business Segment
Frozen Foods Business Segment Lännen Tehtaat plc Interim Report Q1 2012 7
Slide 8: Frozen Foods Business Segment
Lännen Tehtaat Frozen Foods Business Segment Apetit – Locally produced food, straight from the freezer. Apetit Pakaste Oy is the leading Finnish producer of frozen vegetables and frozen ready meals. Under its Apetit brand, it develops, produces, sells and markets frozen foods that are mainly produce
Slide 9: Frozen Foods
Frozen Foods Tasty frozen food for every day use Lännen Tehtaat plc Interim Report Q1 2012 9
Slide 10: Frozen Foods: net sales at level of Q1/2011
Frozen Foods January – March net sales were at the level of Q1/2011 Q1/ Q1/ Q1-Q4/ EUR mill. Change 2012 2011 2011 Net sales 12,7 12,6 1% 45,3 Operating profit, 0,2 0,3 3,3 excl. non-recurring items Operating profit 0,2 0,3 3,3 • Sales increased to the hotel, restaurant and catering sector, to the f
Slide 11: Frozen Foods: operating profit at same level
Frozen Foods Operating profit was at the same level as in Q1/2011 EUR mill. 4 3,5 3,3 3 2,5 2 2011FY 1,5 1,5 1,5 2011 1 2012 0,5 0,3 0,2 0,3 0,2 0,0 0 Cumulative Q1 Q2 Q3 Q4 • The fire which occurred at the fryer of the frozen ready meals factory in March did not interrupt deliveries of frozen ready
Slide 12: Seafood Business Segment
Seafood Business Segment Fresh and tasty fish and various seafood. Lännen Tehtaat plc Interim Report Q1 2012 12
Slide 13: Seafood
Lännen Tehtaat Seafood Seafood segment focuses on tasty and fresh fish and other seafood. Lännen Tehtaat’s Seafood business operates in Finland, Norway and Sweden. Apetit Kala Oy and its subsidiary Myrskylän Savustamo are Finland’s leading seafood companies. Apetit Kala sells fish, fish products and
Slide 14: Seafood
Seafood Fresh and tasty seafood Lännen Tehtaat plc Interim Report Q1 2012 14
Slide 15: Seafood: net sales up compared to Q1/2011
Seafood The net sales were up compared to Q1/2011 Q1/ Q1/ Change Q1-Q4/ EUR mill. 2012 2011 2011 Net sales 20,1 19,3 4% 84,3 Operating profit excluding -0,8 -0,5 0,2 non-recurring items Operating profit -0,8 -0,5 -1,0 • Net sales of the Finnish Seafood business grew in January-March despite the fact
Slide 16: Seafood: operating profit lower than Q1/2011
Seafood The operating profit, excluding non- recurring items was lower than in Q1/2011 EUR mill. 0,7 0,5 0,4 0,2 0,2 -0,3 -0,2 2011FY 2011 -0,5 -0,5 2012 -0,8 -0,8 -0,8 -1,3 Cumulative Q1 Q2 Q3 Q4 • Profit performance in the Finnish Seafood business continued to be positive. • The profit of the Seaf
Slide 17: Grains and Oilseeds Business Segment
Grains and Oilseeds Business Segment Leading expertise in grain trading and vegetable oil production. Lännen Tehtaat plc Interim Report Q1 2012 17
Slide 18: Grains and Oilseeds
Lännen Tehtaat Grains and Oilseeds Avena Nordic Grain is active in the trading of grains, oilseeds and animal feedstuffs in Finland and internationally. It also markets and sells vegetable oils and expeller, which are produced at its Mildola oil milling plant in Kirkkonummi. • Avena’s strengths are
Slide 19: Own vegetable oil packaging plant enables sales growth
Grains and Oilseeds Own vegetable oil packaging plant enables the sales growth in special oils Retail Professional kitchen Food industry Lännen Tehtaat plc Interim Report Q1 2012 19
Slide 20: Sales of grains weaker than in Q1/2011
Grains and Oilseeds The sales of grains were weaker than in Q1/2011 Q1/ Q1/ Change Q1-Q4/ EUR mill. 2012 2011 2011 Net sales 46,5 51,9 -10% 204,9 Operating profit excluding non- 1,4 2,5 8,4 recurring items Operating profit 1,4 2,5 8,4 • First-quarter net sales in the Grains and Oilseeds business wer
Slide 21: Grains and Oilseeds: operating profit lower than Q1/2011
Grains and Oilseeds Operating profit lower than in Q1/2011 EUR mill. 10 8,4 8 6 2011FY 4 2011 2,5 2,5 2,8 2012 1,4 1,4 1,6 1,5 2 0 Cumulative Q1 Q2 Q3 Q4 • The first two months of the year, in particular, were quiet in the grain market, leaving sales volume low. • Despite good sales volumes, the pro
Slide 22: Other Operations
Lännen Tehtaat Other Operations The parent company, Lännen Tehtaat plc, is responsible for Group administration, development of the Group structure and management of shareholdings and real estate. Apetit Suomi Oy is responsible for marketing Apetit products. In addition, Apetit Suomi produces person
Slide 23: Other Operations: Sucros's result higher than Q1/2011
Other Operations Sucros’s result was higher compared to Q1/2011 EUR mill. Q1/ Q1/ Change Q1-Q4/ 2012 2011 2011 Net sales 0,5 0,5 0% 2,7 Operating profit, -1,4 -1,5 -2,0 excluding non re-curring items Operating profit -1,5 -1,5 -2,0 • Net sales from the sale of services in the Other Operations segmen
Slide 24: Assessment of expected future development
Lännen Tehtaat Assessment of expected future development The short-term outlook, which contains a great deal of uncertainty, is weaker than that of the same period last year. The second-quarter operating profit, excluding non-recurring items, is expected to be weaker than that for the same period in
Slide 25: Other topical issues
Lännen Tehtaat Other topical issues 1. The acquisition of Caternet Finland Oy 2. The Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar Lännen Tehtaat plc Interim Report Q1 2012 25
Slide 26: Caternet Finland Oy – frontrunner in fresh products for professional kitchens
Caternet Finland Oy – a frontrunner in supplying fresh products to professional kitchen sector Caternet produces and supplies ready-to-use vegetable, fruit and fresh fish products. The company was established in 1994 and its net sales in 2011 were approximately EUR 29 million. It employs about 120 p
Slide 27: Caternet Finland Oy - history
Caternet Finland Oy - history • Caternet Finland Oy’s story began in 1994 at the Hakaniemi Market Hall, where the company operated until 1998 under the name Helsingin Kalamarket Oy. • In 2000, Caternet acquired Valiovihannes Oy, which was established in 1926. In 2004, Valiovihannes was merged into C
Slide 28: Caternet Products
Caternet Products PRODUCT GROUP Sales structure by product Fruit 2% 2% 5% 7% Mixed vegetables 9% 43 % Vegetables 13 % Roe and shellfish 19 % Herring and Baltic Ready-to-use fresh products herring Vegetables Fish products Fresh fish Root vegetables Fruits Other fish products Processed fish Other vege
Slide 29: Caternet Customers
Caternet Customers 5% 10 % Caternet’s main customer segment is the hotel, HoReCa HoReCa restaurant and catering sector and the largest Public sector Julkinen 23 % customer group is staff restaurants. Retail trade Vähittäiskauppa 62 % Food Industry Teollisuus Another major customer segment is public
Slide 30: Caternet has many strengths
Caternet has many strengths • Caternet is a major supplier in the hotel, restaurant and catering sector, and especially to staff restaurant chains • Product selection supports the modern food service sector’s operating model food service sector procures ready-to-use vegetables and fruit to enhance t
Slide 31: Opportunities of integrating Lännen Tehtaat and Caternet
What opportunities the integration of Lännen Tehtaat and Caternet will bring? 1) The acquisition supports Lännen Tehtaat’s growth strategy. Lännen Tehtaat has resources to support the growth of Caternet. 2) Caternet’s fresh vegetable and fruit products are very compatible with Lännen Tehtaat’s food
Slide 32: Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar
Lännen Tehtaat Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar Lännen Tehtaat plc Interim Report Q1 2012 32
Slide 33: Shareholder agreement dispute (1/4): background
Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar (1/4) Backgound of the dispute • Lännen Tehtaat plc (20%) and Nordic Sugar Oy (80%) are both owners of Sucros Ltd. • Sucros Ltd was established in 1990 when the sugar industries of Lännen Tehtaat plc and the then Cultor Oy were co
Slide 34: Shareholder agreement dispute (2/4): arbitration court situation
Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar (2/4) The situation at the moment in the arbitration court • The arbitration court is an impartial body consisting of a chairman and two members. • Both parties have appointed their own mediator. • The Arbitration Institute of the
Slide 35: Shareholder agreement dispute (3/4): why arbitration
Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar (3/4) Why the arbitration court is involved? • The arbitration court is defined in the shareholders' agreement as the measure to resolve disputes between shareholders, which can not be solved otherwise. • By going to the arbitrati
Slide 36: Shareholder agreement dispute (4/4): the future
Shareholder agreement dispute between Lännen Tehtaat and Nordic Sugar (4/4) The future • After the arbitration court proceedings, the co-operation with Nordic Sugar will continue within the limits defined by the shareholder agreement • Sucros is a sound, profitable company • Sucros will continue to
Slide 37: Thank you.
Thank you. Lännen Tehtaat plc Interim Report Q1 2012 37