Mutandis Sca · CSEMA:MUT
Mutandis Sca — Mutandis — Investor Day (May 2024)
60 slides from Mutandis Sca's investor day presentation, May 22, 2024
Slide 1: Capital markets day: Strategy & Ambition
MUTANDIS Capital markets day STRATEGY & AMBITION MaY 22, 2024 Mai 2024
Slide 2: Welcome message: Growth is a state of mind
Message de bienvenue “GROWTH IS A STATE OF MIND ” CEO Mutandis Group Mai 2024
Slide 3: Sommaire
Sommaire Values of success Innovate for Experimental margins science Adil Douiri , CEO Zakaria Mediouni, Salim Chouddart, Seafood Route to Market How to choose? The Gold Rush? Figures, figures Omar Rharbaoui, Mohamed Lahlou & Fatima-Zahra Mediouni, Strategy Meriem Wadghiri, DG fonctions support Seas
Slide 4: Values of success
Values of success Adil Douiri, CEO Mai 2024
Slide 5: Mutandis culture
Mutandis culture A company’s culture MUTANDIS has MUTANDIS is men and builds either success strong, clear and women first or failure shared values Mai 2024
Slide 6: Mutandis Culture
Mutandis Culture PERSISTENCY HUMILITY RESILIENCE WORK CONFIDENCE KINDNESS IN DEPTH ANALYSIS ACCESSIBILITY SIMPLICITY CANDOR INTEGRITY PRAGMATISM DOWN TO EARTH TRANSPARENCY RESULT ORIENTED Mai 2024
Slide 7: A business model focused on channels
A BUSINESS MODEL FOCUSED ON CHANNELS Morocco Export Categories Small groceries, Third party distributors Our distribution channels wholesalers/semi- and modern trade dictate our categories choices wholesalers, rural « souks », modern trade Mai 2024
Slide 8: A business model focused on channels
A BUSINESS MODEL FOCUSED ON CHANNELS 1. R&D 2. MANUFACTURING We design and We manufacture develop (R&D), then our own brands manufacture our products Distribution channels 4. Pricing 3. Route to Market Costs and selling Route to Market must be prices must be low to shared as much as expand categorie
Slide 9: The competitive advantages of Mutandis
THE COMPETITIVE ADVANTAGES OF MUTANDIS Rapid and efficient governance Agile and nimble Absence of hierarchical layers Reduced time To Market Teams quality Cultural proximity to consumers Disciplined approach The right product at the right price End-to-end integration Low cost culture Mai 2024
Slide 10: That enabled
THAT ENABLED »>>>»>> " @iteia POWER OF NATURE Mai 2024
Slide 11: Omar Rharbaoui, Strategy
Omar Rharbaoui, StratEgY Mai 2024
Slide 12: How to choose?
HOW TO CHOOSE? S W Strengths Weaknesses O T Opportunities Threats Mai 2024
Slide 13: Channels dictate choices
CHANNELS DICTATE CHOICES Sharing as much as possible our Route to Market in Morocco and abroad ; Morocco drives the selection of future products ; Export comes after USA has the same approach as Morocco (acceptance by the channel, compatibility of a product with the brand attributes), but without ma
Slide 14: Approach in Morocco
APPROACH IN MOROCCO • Hygiene, • food, • drinks Identify categories Prioritize compatibility at the grocer with our existing brands Are the macro- (proximity to existing categories of FMCGs categories) Mai 2024
Slide 15: Approach in Morocco
APPROACH IN MOROCCO Select the largest But also identify categories ; emerging categories (small but strong growth) Mai 2024
Slide 16: Approach in Morocco
APPROACH IN MOROCCO Assessment of competition intensity ; Competitors typology (multinationals, transparent Moroccans, non-transparent Moroccans) ; Estimating current margin levels Mai 2024
Slide 17: Approach in Morocco
APPROACH IN MOROCCO Ability to manufacture simply and easily ; Ability to obtain a competitive selling price ; Ability to democratize and expand emerging/premium categories Mai 2024
Slide 18: Approach in the USA
APPROACH IN THE USA Season is 100 years old, has brand attributes recognized by the consumer, also related to the product itself (single-product brand) ; Presence in the most important supermarket chains ; Trying to stretch the brand into well accepted categories (by the consumer) ; Assessing catego
Slide 19: Nabil Boutaleb, Home & Personal Care
Nabil Boutaleb, Home & Personal Care Mai 2024
Slide 20: Innovate for growth
INNOVATE FOR GROWTH »>>>»>> aeté Mai 2024
Slide 21: Home care challenges: mature categories
HOME CARE CHALLENGES MATURE CATEGORIES Our market shares range from 10% to 30% in mature categories ; The challenge is to reach and stabilize a « natural » market share ; In each category, we aim to play in all price levels to stick to the consumer ; Example : hand washing powder Mai 2024
Slide 22: Home care challenges: emerging categories
HOME CARE CHALLENGES EMERGING CATEGORIES Identify emerging categories early enough ; Quickly develop a quality product, applauded by the consumer ; Position our products at a lower price to democratize and significantly expand the category ; Example : machine washing liquid Mai 2024
Slide 23: Personal care: a new world
PERSONAL CARE : A NEW WORLD A MAD 5 billion category (retail price) = MAD 125/ inhabitant : a significant medium and long-term growth potential ; Demography, urbanization, new households, higher incomes : are the growth drivers ; A natural extension of the home care category Mai 2024
Slide 24: Personal care: a new world
PERSONAL CARE : A NEW WORLD 1. Difference with home care : 3. A thoroughly tested and higher barrier to entry, more developed product, agressive intensive marketing, higher pricing, intensive marketing margins ; and … persistensy ! 2. Shampoo, body soap, 4. VITAÏA is born in December shower gel, moi
Slide 25: Innovate for growth
INNOVATE FOR GROWTH We are constantly creating new products, new recipes, new fragrances, new formats and packagings ; We are entering new categories and trying to be disruptive ; Innovation protects from margin erosion ; Innovation also adds chunks of revenues. Mai 2024
Slide 26: Zakaria Mediouni, Seafood
Zakaria Mediouni, SEAFOOD Mai 2024
Slide 27: Innovate for margins
INNOVATE FOR MARGINS Mai 2024
Slide 28: A super food but a limited resource
A SUPER FOOD BUT A LIMITED RESOURCE Pelagic fish (Morocco : sardines, mackerel) is increasingly recommended and requested worldwide. It is a popular trend in developed countries ; From food for poor (Africa) to food for young and sophisticated consumers (USA) : Omega 3, protein, long shelflife, easy
Slide 29: A shift towards rich consumers
A SHIFT TOWARDS RICH CONSUMERS Season acquisition in the US in 2021 : A tremendous channel to sell high-end products ; Specialization of one of our 4 cans factories in skinless and boneless sardines, for America ; Already more than MAD 100 million per annum exported to the US ; One missing piece: a
Slide 30: Morocco: an evidence
MOROCCO: AN EVIDENCE Historical absence of Mutandis in Moroccan fish cans market, despite a significant expertise in FMCGs in Morocco (distribution, marketing, …) ; Launch of Marine, starting with high-end sardine (skinless boneless), less expensive than tuna: promotional launch price MAD 7 (incl. t
Slide 31: Maximise the guano value
MAXIMISE THE « GUANO » VALUE Half of the fish is useless for canning : sold to flour producers until 2024 ; Flour is the lowest added value product : Mutandis innovates with the 1st sardines hydrolysates factory in Morocco (and in Africa) ; About 80g of proteins/100g, 100% export, sold to petfood pr
Slide 32: Maximise the guano value
MAXIMISE THE « GUANO » VALUE 1. Hydrolysates could be upgraded to human food 3. A significant layer of EBITDA for supplements and collagen production ; Mutandis as it involves half of the caught fish 2. New factory = quota of free 20,000 tonnes (rent savings), to start in Q4 2024 ; Mai 2024
Slide 33: Mohamed Lahlou & Meriem Wadghiri, Season USA
Mohamed Lahlou & Meriem Wadghiri, Season USA Mai 2024
Slide 34: The gold rush
THE GOLD RUSH Mai 2024
Slide 35: A Moroccan in America
A MOROCCAN IN AMERICA America is a continent, with a very high purchasing power ; Most consumer products are sold at significantly higher prices ; Even the slightest success would strongly impact a company like Mutandis (size). Mai 2024
Slide 36: Season: the starting point
SEASON : THE STARTING POINT In the beginning, shift our sardine cans production towards the Amercian consumer ; By purchasing the leading brand (50% market share) of premium sardine cans in the US ; 100 years old and sold at Costco, Walmart, Amazon etc… ; Combine factory margins and Season margins,
Slide 37: Season: first step
SEASON : FIRST STEP 01 02 03 04 Stimulate growth Develop other Extend Season 2022-2027 timeframe. of the whole channels instead seafood range category, not of Costco (Costco (tuna, etc.) ; market share gain already well (we are the leader) ; developed) ; Mai 2024
Slide 38: Season: the jackpot?
SEASON : THE JACKPOT? Find a product compatible with the domain of the brand as perceived by the consumer ; Convince American retailers to try and experiment with us ; E-commerce is a great plus for us (compared to other markets) ; If a single product works, the impact might be significant for Mutan
Slide 39: Nabil Boutaleb, Drinks
Nabil Boutaleb, DRINKS Mai 2024
Slide 40: Ride the growth
RIDE THE GROWTH NN >>>>> a ig] MUTANDIS
Slide 41: Two fast-growing categories
TWO FAST-GROWING CATEGORIES 6 Bottled water, both natural mineral water and table water ; 5 4 Low-cost fruit-based drinks ; 3 2 « Real » fruit juices are more 1 expensive, with less short-term growth. 0 Mai 2024
Slide 42: Ain Ifrane challenges
AIN IFRANE CHALLENGES Consumer pulls very strongly, Ain Ifrane should reach the concession ceiling in 2024 ; The challenge for the future is a drilling, to extend our authorized volume (2025) ; The 2nd challenge is to optimize logistics expenses (2024-2025) ; The 3rd challenge is to launch a table w
Slide 43: Oasis, Oasis…
OASIS, OASIS… Frut is inspired by Oasis : belongs to the soft drinks category, but a non- carbonated drink, with a naturality claim (Fruit based). Not a fruit juice ; Frut pricing lower than multinationals in the CSDs (MAD 6/liter retail price) ; Somewhat of a gamble, but a very strong start ; With
Slide 44: A great potential
A GREAT POTENTIAL 2024-2025 Frut launches will expand volumes ; Vitakids is the 2nd growth driver, no saturation yet ; Pure juices and nectars are mostly image products for the Marrakech brand ; We will have tripled the size of the brand in a decade (acquisition in 2017) ; Without mentioning our exp
Slide 45: Salim Choudart, Route to market
Salim choudart, Route to market Mai 2024
Slide 46: Experimental science
EXPERIMENTAL SCIENCE Mai 2024
Slide 47: Fundamental theorems
FUNDAMENTAL THEOREMS Modern trade is the worst channel in terms of margins to minimise in the mix ; Rural « souks » (wholesalers/ semi wholesalers) are in Mutandis DNA ; Urban wholesalers are useful for some categories/brands ; Direct distribution to groceries (and via third distributors in remote
Slide 48: Mutualization has its rules
MUTUALIZATION HAS ITS RULES 01 We launch new categories/new products on a regular basis ; 02 Atransaction grocery has a ceiling expense per (per truck/scooter visit) ; 03 products at once ; Our salesmen cannot focus on all truck 04 This gradually requires to double direct distribution and specialize
Slide 49: Experimental science
EXPERIMENTAL SCIENCE Do our salesmen follow optimal routes? Will sending two specialized trucks to the same grocery double our revenues ? Which categories are best together in the same truck? There is no perfect recipe and we gradually keep on improving. Mai 2024
Slide 50: Next steps
NEXT STEPS Owning our route to market system is a barrier to entry for competitors ; Today, we list about 48,000 regular clients, there are at least 70,000 groceries We grew from 120 mobile sales units 5 years ago, to 250 at the end of 2024 : still growing ; Ain Ifrane brings coffee shops/hotels/res
Slide 51: Fatima-zahra Mediouni, Support Functions Director
Fatima-zahra mediouni, support FUNCTIONS DIRECTOR Mai 2024
Slide 52: Figures, figures…
Mai 2024 FIGURES, FIGURES …
Slide 53: 2023 consolidated revenues (excluding beverage bottles)
2023 CONSOLIDATED REVENUES (excluding Beverage bottles) 30% SEFOOD 2023 revenues : MAD 2 167 33% Million HYGIENE (excluding beverage bottles SEASON business) 26% DRINKS 11% Mai 2024
Slide 54: 2027 consolidated revenues
2027 CONSOLIDATED REVENUES 29% SEFOOD 2027 revenues : MAD 2 650 30% Million HYGIENE SEASON 22% DRINKS 19% Mai 2024
Slide 55: 2023-2027 indicators
2023* - 2027 INDICATORS 2027 REVENUES > MAD 2 650 MILLION Vs MAD 2 167 million in 2023 , pulled by the new categories EBITDA 2027 < MAD 390 million–MAD 430 MILLION > VS MAD 283 million in 2023, new categories with new margins. 2027 RECURRING NET INCOME ~ MAD 200 MILLION VS MAD 118 Million in 2023 *
Slide 56: Operating cashflow and CAPEX 2024-2027
2024 - 2027 Excluding CMB Plastique ∑ operating ∑ CAPEX ∑ Free Cashflow Cashflow ~MMAD 850 < MMAD 400 ~MMAD 450 Sale of CMB Plastique MMAD 330 Group Debt CMB sale in payment Mai 2024 2024
Slide 57: To 2028 (ica)
To 2028 (ica) Adil Douiri, CEO Mai 2024
Slide 58: Whatever is well conceived is clearly stated
« Whatever is well conceived is clearly stated » Boileau 2.0 Mai 2024
Slide 59: Questions & Answers
QUESTIO ANS Mai 2024 ig] MUTANDIS
Slide 60: The End
THE END Mai 2024