Greencore Group Plc · LSE:GNC
Greencore — Investor Day (March 2017)
23 slides from Greencore's investor day presentation, Mar 28, 2017
Slide 1: Greencore Group plc Northampton site visit
Greencore Group plc Northampton site visit, 28th March 2017 1
Slide 2: Today's agenda
Today’s agenda 12.25pm • Welcome and Agenda • Welcome to Greencore Food to Go 12.30pm • Innovation Lunch • Introduction to Northampton • Tour of Unit D 1.00pm • Review of Our Mobile Stores Operation • Overview of Unit K 3.00pm • Food to Go Presentation 3.40pm • Panel Discussion 4.15pm • Close 2
Slide 3: People here today
People here today Eoin Tonge Kevin Moore Peter Haden Group Chief Financial Managing Director – Group Chief Officer Greencore Food to Go Operations Officer Helen Sisson Phil Lovell Emma Hynes Group Technical MD – Greencore FtG Group Finance Director Northampton Director 3
Slide 4: Greencore is the world's largest sandwich maker
Greencore is the world’s largest sandwich maker - serves 9 of the top 10 sandwich retailers in the UK Unrivalled market Strategic supply Advantaged economic leadership partnerships and operational model WIDE CHANNEL COVERAGE Convenience High Street Major Multiples Coffee Shops Forecourts Travel Disc
Slide 5: Greencore Food to Go – the markets we operate in
Greencore Food to Go – the markets we operate in MARKET SIZE ANNUAL MARKET SIZE ANNUAL £M’S GROWTH % £M’S GROWTH % £93m 10.9% £1,231m +4.6% £408m -2.7% COMMENTS £256m 13.2% SOURCE: GREENCORE NIELSEN EPOS SALES 52 WEEKS TO 31.12.16 5
Slide 6: Greencore Food to Go – our customers
Greencore Food to Go – our customers 6
Slide 7: World class manufacturing facilities
World class manufacturing facilities 1 Manton Wood Sandwiches • Seven well-invested manufacturing 2 Northampton S/wiches & sushi facilities, producing sandwiches, 3 Atherstone wraps, baguettes, sushi & salads Sandwiches 4 Park Royal Sandwiches • New capacity investment in 5 Bow Northampton, Bow, Par
Slide 8: Northampton overview
Northampton overview • Business originated in 1926, located in Northampton since 1974 • Purpose built M&S factory since 1990 • Acquisition by Greencore in 2011, share of M&S increased to c.65% • Commencement of new builds (D, then K) in 2014 Total Site Area: 6.5 acres Production Lines: 25 • Share of
Slide 9: Recent investment to build our Northampton campus
Recent investment to build our Northampton campus 9
Slide 10: Food to go opportunity for Greencore
Food to go opportunity for Greencore • Attractive category dynamics • High and growing market share • Long term customer partnership model • Advantaged structural economics • Potential to expand consumption • Broadening channel mix • Our people and capability 10
Slide 11: Food to go is a huge and rapidly growing market
Food to go is a huge and rapidly growing market with many positive factors to continue driving growth Large Overall Market Sustainable High Growth £1,293m 6.6% CAGR £638m 2006 2017F Supportive Consumer Trends Supportive Customer Trends SOURCE: GREENCORE NIELSEN EPOS SALES 11
Slide 12: The UK food to go market remains vibrant and of significant commercial scale
The UK food to go market remains vibrant and of significant commercial scale £5.0bn £2.7bn £4.6bn £2.5bn £1.2bn QSRs (Quick Service Restaurants) Coffee specialists Food-to-go specialists £2.5bn Convenience, forecourt & other retailers £1.2bn Supermarkets & hypermarkets Convenience, forecourt Superma
Slide 13: High and growing share of sandwiches
High and growing share of sandwiches GREEMARKET SHARE OF GROCERY CHANNEL 2011 13
Slide 14: High and growing share of sandwiches
High and growing share of sandwiches GREEMARKET SHARE OF GROCERY CHANNEL 2014 14
Slide 15: High and growing share of sandwiches
High and growing share of sandwiches GREEMARKET SHARE OF GROCERY CHANNEL 2017 15
Slide 16: Long-term partnership model
Long-term partnership model 100% 100% 100% 100% 100% 40% 50% Share Share Share Share Share Share Share • Customer ‘champion’ mind-set • Aligned measures of success • Brilliant at the basics ‘silent running’ • Investment in resource and capability • Technical and innovation excellence • Accountabilit
Slide 17: Our primary focus is delivering growth with our key strategic partners
Our primary focus is delivering growth with our key strategic partners ‘Fixture of the Future’ model DRIVING CATEGORY VALUE CUSTOMER AND CATEGORY INNOVATION OPERATING MODEL OPTIMISATION 0 Months 18 Months 5 Years 17
Slide 18: Working with our customers to improve their in-store experience
Working with our customers to improve their in-store experience and elevate food to go to a ‘hero’ category More FTG space, products blocked by Re-Designed Packaging ‘Fresh’ In-Store Experience occasion & protein rather than meal deal ‘Grab & Go’ Hot • Expanding day part opportunities • Enhancing fr
Slide 19: M&S: proving the opportunity for additional channel reach
M&S: proving the opportunity for additional channel reach Standalone FTG stores Office Delivery Forecourts Travel 19
Slide 20: Leveraging our market leading direct to store delivery capability
Leveraging our market leading direct to store delivery capability to help growth OUR NETWORK Purpose built to match the unique requirements and dynamics of the food to go market • 650 sku’s Investment in the last two • 7,500 daily drops Delivered direct to store • 4.6m weekly units years • 17million
Slide 21: Actively growing our presence with new customers in high growth channels
We are also actively growing our presence with new customers in large, high growth channels £5.0bn £2.7bn £4.6bn QSRs Coffee specialists Food-to-go specialists SOURCE: IGD FOOD-TO-GO REPORT, JUNE 2016 21
Slide 22: People at the Core
People at the Core people at the greencore 0) the core Keep people healthy and safe Respect, recognise and reward ‘one's contribution Ensure by t Support one another to fulfil each person's potential Build a sense of excitement and fun into the work environment onsibility is owned ne right people pe
Slide 23: Summary
Summary • Strong history of growth • High and growing market share • Attractive structural economics • Good track record of investment • Market insight and understanding • Growth projections remain positive • Plenty of opportunity to do more 23