Emmi Ag · SIX:EMMN
Emmi — Helvea Swiss Equities Conference 2011
32 slides from Emmi's conference presentation, Jan 13, 2011
Slide 1: Emmi: Powerful strategy for long-term success
Emmi: Powerful strategy for long-term success Helvea Swiss Equities Conference Bad Ragaz, 13 January 2011 Reto Conrad, CFO
Slide 2: Content
Content Emmi in brief Roadmap to success Ahead of us Summary and outlook
Slide 3: Independent and successful in open markets
Independent and successful in open markets Strategy and vision Vision § Independent and internationally successful dairy in open markets Market positioning § The leading Swiss company for cheese and dairy products § The leading company for Swiss cheese worldwide § One of the leading premium dairies
Slide 4: Broadly based product portfolio
Broadly based product portfolio Product groups (Net sales 2009) Dairy products Fresh products 28.5 % (CHF 746 million) 21.5 % (CHF 564 million) Other products/services 6.4 % (CHF 169 million) Powder/concentrates 3.3 % (CHF 86 million) Cheese 35.1 % (CHF 919 million) Fresh cheese 5.2 % (CHF 135 milli
Slide 5: Strengthening the house of Emmi
Strengthening the house of Emmi Emmi Position Statement Genuine Swiss Premium indulgence One Word Equity Emmi Indulgence Indulgence One Word Equity Refine- Swiss Local Brands Original Inspiration Wellbeing ment jewels jewels Product Brands „Emmi „Emmi ofof Benecol Benecol Tigre Tigre Trentinalatte T
Slide 6: Expansion through subsidiaries and alliances
Expansion through subsidiaries and alliances International reach USA, Arcata/CA Canada Benelux Cypress Grove Ch. USA, Monroe/WI Penn Yan, NY Emmi Roth Inc. CASP United Kingdom Germany USA, Arcata/CA Cypress Grove Ch. Austria Italy Rovere della Luna France Spain Switzerland 43% Kaiku Helvea Swiss Equ
Slide 7: Most important production sites in Switzerland
Most important production sites in Switzerland Constantly improved productivity and efficiency Suhr AG Emmen LU Dagmersellen LU KirchbergBE Kirchberg BE Ostermundigen BE Landquart GR Langnau BE Helvea Swiss Equities Conference, Bad Ragaz, 13. January 2011, Reto Conrad Page 7
Slide 8: Content
Content Emmi in brief Roadmap to success Ahead of us Summary and outlook
Slide 9: Emmi 2014: An international player with competitive structures
“Emmi 2014”: An international player with competitive structures Background Success factors Strategic pillars § Swiss market saturated; § Critical company size/ international market key international player growing § Early, proactive § Market liberalization in adjustment to market Defence of positio
Slide 10: Strategy implementation: Cost management
CHF 15 million of cost savings in 2010 Strategy implementation: Cost management Cost management Highlights § Implementing Kaizen in cheese sector § Streamlining programme for dairy products § Various small streamlining investments with pay-back of 3 years § Optimized logistics, in particular in inte
Slide 11: Strategy implementation: Switzerland
High quality portfolio, strong position in regions Strategy implementation: Switzerland Defence of position within Switzerland Organic performance Tactical acquisitions § CH market share of roughly 50% § Nutrifrais: Acquisition of 60% of maintained, with increased quality shares by Emmi of product p
Slide 12: Strategy implementation: International markets
Organic growth of international platforms complemented with high potential acquisitions Strategy implementation: International markets Growth outside Switzerland Organic growth § Organic growth in local currencies of 12.3% (2009 compared to 2008) § Growth with international platforms - Caffè Latte v
Slide 13: Examples
Examples - Organic - Acquisitions
Slide 14: Strong presence in Switzerland and abroad
Strong presence in Switzerland and abroad Promotions/ New: Tastings KALTBACH Extra Training of intl staff Cooperations with media Cheese paper Events / Visitor Faires center / Sponsoring Cave-aged indulgence TV / advertising PR www.emmi-kaltbach.ch Collection / Gourmet-Line / Merchandising Helvea Sw
Slide 15: Kaltbach TV Commercial
Kaltbach TV Commercial Helvea Swiss Equities Conference, Bad Ragaz, 13. January 2011, Reto Conrad Page 15
Slide 16: Focused activities in key markets
Focused activities in key markets TV emmi-caffelatte.com Lifestyle events New varieties Advertising Fairs Promotions/ Tastings 2nd POS Helvea Swiss Equities Conference, Bad Ragaz, 13. January 2011, Reto Conrad Page 16
Slide 17: Positive development over years
Positive development over years Steady growth in Switzerland and abroad 80 70 60 50 In mio. cups Export 40 CH 30 20 10 2005 2006 2007 2008 2009 1H2010 Mio. cups Comparison with 2008 Total: 41.3 +28.6% Switzerland: 14.5 +21.8% International: 26.8 +32.6% Germany mo. 1 Quelle: Bestellmenge (ab Werk) He
Slide 18: Invest where it makes a difference
Invest where it makes a difference Comparison of Caffè Latte with overall marketing spending Indexed development of marketing spending 250 200 183 200 166 150 133 127 124 100 112 117 100 50 0 2006 2007 2008 2009 2010* Marketing & sales overall Emmi Caffè Latte (Index 2006 = 100) Helvea Swiss Equitie
Slide 19: Acquisition case 1: Roth Käse
Acquisition case 1: Roth Käse Entering new channels in the USA Sales: approx. USD 90 million § Strong position in the food service Employees: 125 sector Products § Premium segment, award-winning – High quality speciality products cheeses (cow’s milk) § Helps to expand into new channels Markets § Joi
Slide 20: Growth continues since acquisition by Emmi
Growth continues since acquisition by Emmi Emmi Roth USA Inc.: Sales development 14 12.0 12 11.2 10.6 9.5 Cheese sales in million kg* 10 8.5 8 6 4 2 0 2005 2006 2007 2008 2009 2010** 2006: Expansion of storage capacities in September 2006 2009: Acquisition by Emmi on 1 January 2009 * Of cheese produ
Slide 21: Extended product range with Swiss Premium cheese and American specialties
Extended product range with Swiss Premium cheese and American specialties Example: Gruyère Original product range of Emmi Kaltbach Gruyère Grand Cru Gruyère Surchoix -> cave-aged for 12 months -> hand-selected for curing at least nine months Gruyère AOC -> various forms and Grand Cru Gruyère Reserve
Slide 22: Acquisition case 2: Onken
Acquisition case 2: Onken Door opener to push business in UK & Germany Sales: approx. CHF 75 million § Strong brand in line with Emmi’s Products premium world – Natural yogurt § Significantly strengthens two of – Fruit yogurt Emmi’s key markets – Wholegrain yogurt § Helps achieve critical size in UK
Slide 23: Growth in UK above European average
Growth in UK above European average Development potential of dairy products Helvea Swiss Equities Conference, Bad Ragaz, 13. January 2011, Reto Conrad Page 23
Slide 24: Steady growth of EBIT and net profit
Steady growth of EBIT and net profit Development of profits % 5 4.8 4.2 4 3.7 3.8 3.5 3.3 3.2 3 3.1 2.7 2.9 2.6 2.6 2.5 2.5 2.5 2.3 2 2.1 2.2 1.9 1.9 2.1 1.6 1 0 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 June 08 Dec 08 June 09 Dec 09 June 10 Jun = HY results Dec = FY results EBIT Net profit Helvea S
Slide 25: Agenda
Agenda Emmi in brief Roadmap to success Ahead of us Summary and outlook
Slide 26: Sales 2002 – 2009 and long-term goal
Sales 2002 – 2009 and long-term goal Steady growth towards 50/50 ratio International & CH In CHF million 3,000 2,671 2,619 2,501 2,500 2,335 626 675 50% 587 2,027 509 2,000 1,879 1,926 444 414 447 1,500 1,389 50% 256 1,944 1,000 2,045 1,826 1,914 1,465 1,479 1,583 1,133 500 0 2002 2003 2004 2005 200
Slide 27: Balance between organic growth and acquisitions
Balance between organic growth and acquisitions The focus in Switzerland and abroad Swiss market § Main focus on organic development § Completion with small, tactical acquisitions, above all to expand range of local products International markets Organic growth and acquisitions are strategic initiat
Slide 28: Possible routes for acquisitions
Possible routes for acquisitions Brand Jewel Technology Market Synergies/ Organic Regional / Leader / Added Efficiency Completion of Value PL range CHF 1,000 million International Strategic/ Onken Possible Roth CHF 50 million Käse/ Fromalp Possible Cypress Grove Tactical/ Swiss Nutrifrais / Possible
Slide 29: Agenda
Agenda Emmi in brief Roadmap to success Ahead of us Summary and outlook
Slide 30: Outlook 2011 - Markets
Improving consumer sentiment but currency issues are still challenging Outlook 2011 - Markets Consumers § Stabilized consumer sentiment in the US and in Europe § Stagnating retail spending in Switzerland Competition § Strong competition through imports (in CH) and multinational brands (worldwide) §
Slide 31: Summary: Key findings
Summary Key findings § Concentration on strong brands proves to be successful § Interaction of strategy, structure and culture is key § Organizational development materializes § Good acquisitions pay off § Emmi has not reached the end of the story § The company is well positioned to reach its goals,
Slide 32: Outlook for 2010 as a whole
Outlook for 2010 as a whole Group sales stable, growth abroad § Group sales ~0% organic (slight increase including acquisitions) - Switzerland, incl. acquisitions stable - Switzerland, organic -2% - International, incl. acq. 8 – 10% - International, organic 6 – 8% § EBIT CHF 115 – 125 million § Net