Apetit Oyj · OMXHEX:APETIT
Apetit Oyj — FY2017 Earnings Presentation
29 slides from Apetit Oyj's earnings presentation, Mar 1, 2018
Slide 1: Apetit 2017 Financial Statements Bulletin
Apetit 2017 Financial Statements Bulletin CEO Juha Vanhainen APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 1
Slide 2: Key events in 2017
Key events in 2017 Turnaround in the Summer 2017 was cool Divestment of the throughout the growing Working capital tied Apetit established its Food Solutions Seafood business season. The end of the up in operations position as number one in business, supported supports Apetit to growing season was d
Slide 3: Continuing operations Q1-Q4/2017
Continuing operations Q1-Q4/2017 October-December 2017 (Q4) January-December 2017 (Q1-Q4) • Net sales EUR 87.1 (80.4) million • Net sales EUR 314.0 (312.0) million • Operational EBITDA EUR 2.7 (2.0) million • Operational EBITDA EUR 6.8 (5.8) million • Operational EBIT EUR 1.2 (0.6) million • Operati
Slide 4: Net sales, operational EBITDA and operational EBIT of continuing operations Q1-Q4/2017
Net sales, operational EBITDA and operational EBIT of continuing operations Q1-Q4/2017 Net sales, EUR million Operational EBITDA, EUR million Operational EBIT, EUR million 2016 2017 2016 2017 2016 2017 1,6 1,5 6,8 312,0 314,0 1,2 1,3 5,8 0,8 0,6 3,0 2,8 2,7 2,0 Q1 Q2 Q3 Q4 Q1-Q4 85,9 77,3 77,8 75,0
Slide 5: Apetit Group, including discontinued operations Q1-Q4/2017
Apetit Group, including discontinued operations Q1-Q4/2017 October-December 2017 (Q4) January-December 2017 (Q1-Q4) • Group’s consolidated net sales EUR 91.6 (100.1) million • Group’s consolidated net sales EUR 368.1 (386.5) million • Operational EBIT EUR 1.3 (1.6) million • Operational EBIT EUR 1.7
Slide 6: Business segment review, continuing operations
Busines segment review, continuing operations APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 6
Slide 7: Food Solutions 10-12/2017: Sales increased and profit improved
Food Solutions 10-12/2017 Sales increased and profit improved from last year GROWTH IN SALES IN ALL PRODUCT GROUPS Net sales CONSUMER AND CUSTOMER EUR million, comparison 2017/2016 • Segment’s net sales were EUR 27.5 (25.7) million 2016 2017 A third of Finns have increased their consumption 102,4 97
Slide 8: The share of new products continues to grow
The share of new products continues to grow The share of new products in net sales in 2016-2017 Growth of the share of new Examples of new 2016 2017 products retail products Vegepops Tuorekset 12% 16% + 4 percentage Retail point products + 33 per cent Kasvisjauhis beef and patties 10% Organic produc
Slide 9: Studies show: Apetit is number one in vegetables
Studies show: Apetit is number one in vegetables #1 • Top-of-Mind – vegetable product manufacturers • Spontaneous awareness – vegetable product manufacturers • Aided awareness – vegetable product manufacturers • Recommendation – vegetable product manufacturers Awareness of Apetit in comparison with
Slide 10: Oilseed products 10-12/2017: Oilseed harvest fell short
Oilseed products 10-12/2017 Oilseed harvest fell short from comparison period NET SALES CLOSE TO COMPARISON SEASON Net sales OPERATING ENVIRONMENT EUR million, comparison 2017/2016 • Segment’s net sales were EUR 15.7 (15.9) million 2016 2017 Oilseed farming and harvesting conditions were • Segment’s
Slide 11: Grain trade 10-12/2017: Domestic harvest volumes one of the lowest
Grain trade 10-12/2017 Domestic overall harvest volumes one of the lowest OPERATING ENVIRONMENT Net sales SALES AND VOLUMES INCREASED FROM EUR million, comparison 2017/2016 COMPARISON PERIOD Global grain stocks are at high levels and there 2016 2017 is ample supply on the markets • Segment’s net sal
Slide 12: Low price level in grain market, price fluctuations have decreased
Low price level in grain market, price fluctuations have decreased 350 • Wheat price on the international market has fallen over the last two harvest 300 seasons • The changes in wheat prices 250 reflect also other food and feed grain prices EUR / tonne 200 • Market volatility has remained at relati
Slide 13: Summary of January-December
Continuing operations 1-12/2017 Summary of January-December Apetit konserni 1-3/2017 Food Solutions Oilseed Products Grain Trade Continuing operations LIIKEVAIHTO NET SALES NET SALES in total NET SALES EUR 102.4 million EUR 65.3 million EUR 162.9 million 91,9 M€ NET SALES (EUR 97.8 million) (EUR 68.
Slide 14: Discontinued operations
Discontinued operations APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 14
Slide 15: Sale of the Seafood segment to Insula AS
Sale of the Seafood segment to Insula AS The transaction of Seafood business was On 29 June 2017, Apetit completed as of 1 Plc announced that it had November 2017. Insula AS is a strong signed an agreement on group of specialized selling its seafood business Apetit will remain a seafood companies in
Slide 16: Sale of the Seafood segment
Discontinued operations | Seafood business 10-12/2017 Sale of the Seafood segment NET SALES Net sales EUR million, comparison 2017/2016 Seafood segments operations has been • Segment’s net sales were EUR 5.6 (24.1) million 2016 2017 transferred to Insula AS as of 1st of November 2017 87,8 Apetit wil
Slide 17: Apetit Group in total, Summary of January-December
Apetit Group in total, 1-12/2017 Summary of January-December Apetit Apetit konserni Group 1-3/2017 Discontinued Q1-Q4/2017 Continuing operations operations, in total Seafood LIIKEVAIHTO NET SALES NET SALES NET SALES EUR91,9 314.0M€ million EUR 63.6 million EUR 368.1 million (87,5 M€) (EUR 312.0 mill
Slide 18: Solid financial position
Solid financial position December 31st, December 31st, EUR million 2017 2016 Working capital, continuing operations 30.0 52.9 Freed-up working capital Group’s net cash flow from operating activities Q1- 20.0 21.9 Q4/2017 Group’s total equity 112.3 117.7 Group was free of net debt Group’s net debt -1
Slide 19: Outlook for 2018
Outlook for 2018 • The Group’s full-year operational EBIT from continuing operations is expected to improve year- on-year (EUR 1.3 million in 2017). Due to the seasonal nature of the Group’s operations, most of the annual profit is accrued in the second half of the year. Sales volumes and the profit
Slide 20: Trends of eating
Trends of eating APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 20
Slide 21: Trends of eating are on our side
Well-being Ease Taste Organic food Trends of eating are on our side Based on vegetables Domestic Ethically and Transparency ecologically APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 21
Slide 22: Finnish consumers' attitudes to vegetables
86% of Finns think that it is somewhat important or very 56% important that their vegetables are from of Finns would like to increase Finland their consumption of vegetables 31% of Finns have replaced meat with wegetable-based Apetit 2017: IROResearch August/2017: Finland-Sweden vegetable research *
Slide 23: Updated strategy 2018-2020
Updated strategy 2018-2020 APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 23
Slide 24: APETIT OYJ | Financial Statements Bulletin 2017
APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 24
Slide 25: Strategic goals 2018-2020
Strategic goals 2018-2020 Flexible with Primary Internationali- Digital services regard to production Renewing and sation in all for primary manufacturing partnerships and attractive brand business production and and commercial deepening operations consumers scale collaboration We are open to corpor
Slide 26: Trends in eating support the strategy
Trends in eating support the strategy • The trends in eating firmly support Apetit’s chosen strategy and majority of choices made in the last strategic period • Apetit aims to be a leader in vegetable based eating • Focus areas of the new strategic period continue the work reaching and further stren
Slide 27: Plan for timing of principle measures during the strategy period
Plan for timing of principle measures during the strategy period 2018 2019 2020 Food Expansion in fresh products Building economies of scale in fresh products Renewing frozen foods Strengthening iconic products and renewing frozen foods Strengthening international sales Thorough R&D activity to incr
Slide 28: Financial targets and dividend policy
Financial targets and dividend policy • Apetit’s financial targets for 2020 • At least to double operational EBITDA (2017: EUR 6.8 million in continuing operations) • Operational return on capital employed (ROCE%) > 8% (2017: 2.4%) • Updated dividend policy • The aim of the Board of Directors of Ape
Slide 29: Apetit develops and innovates eating
#vege 2018: Apetit develops and innovates eating #FoodFromFinland #ReadyToEat #sustainability APETIT OYJ | Financial Statements Bulletin 2017 1.3.2018 29