acomo presentatie
DESCRIPTION
presentatie van seminarTRANSCRIPT
Focus on FoodFocus on Food
Company presentation
June 2012
Company presentation
June 2012
Focus on Food
Acomo at a glanceAcomo at a glance
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Focus on Food
Organizational chart Acomo GroupOrganizational chart Acomo Group
3
Focus on Food
Different products – same background Different products – same background
Exclusive Focus on Food
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• Sorting• Cleaning• Blending• Packaging• Quality
control
Trading logistics & financing• Market information• Food safety & traceability• Tailor-made programs:
just-in-time, consignment stock, outsourced purchasing
• 300 natural raw materials & ingredients• from 50 countries worldwide• 300.000 M.T. p.a.
• Serving the food industry:bakeries, meat processors, beverage, savoury, ready food, sweets & snacks
• Worldwide• € 570 M sales
SourcingSourcing
TradingservicesTradingservices
ProcessingProcessingDistributionDistribution
Reliabilityof contractsReliability
of contracts
Focus on Food
Diversified activities and resultsDiversified activities and results
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2011 sales split
2011 results split
Tea27%
Food ingredients 2%
Tropicaland nuts
51%
Edibleseeds20%
Tea14%
Food ingredients 3%
Tropicaland nuts
57%
Edibleseeds26%
Netherlands14%
EU21%
USA/ Canada
27%
Other Europe
21%
Asia9%
Africa5%
Other3%
Focus on Food
A worldwide sourcing & sales networkA worldwide sourcing & sales network
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Colby, Kansas
Blantyre
Toronto
Lubbock, TexasCaïro
Mombasa
Moscow
Colombo
Djakarta
Hanoi
London
Ho Chi Min
Hangzhou
BeernemLondon
Beernem
Fargo, North DakotaFargo, North Dakota
Dongen
Bodegraven
Rotterdam
Zevenbergen
London
Fargo, North Dakota
Maasland
Focus on Food
Key figures 2011Key figures 2011
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Focus on Food
2011: Top year for the Acomo Group2011: Top year for the Acomo Group
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EPS € 1.13(+31%)
SALES€ 571 M (+52%)
EBIT€ 41 M (+37%)
DIVIDEND€ 0.65 (+31%)
EQUITY€ 112 M
NET PROFIT€ 26.2 M (+69%)
SOLVENCY >40%
RETURNON EQUITY
29%
TOTAL HR 500
Focus on Food
2011: Autonomous growth of 12.6%2011: Autonomous growth of 12.6%
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In € mln
14
18
22
26
30
10
15.3
+2.9
18.2
+ 6.5
+ 2.3
+ 0.6
Non-recurring result
Full year new Opco’s
Autonomous growth
Lower interest bonds
Net result 2010
- 0.7- 0.7
26.2
Lower HO costs + interest
Lower USD rate
Net result2011
Conclusion: 2011 performance fully meets expectations
Focus on Food
2011: Strong cash flow generation € 47M (+38%)2011: Strong cash flow generation € 47M (+38%)
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0
20
40
60
80
In € mln
40
60
80
In € mln
6.7
+ 47.1
+ 22.7
Cash flow from operations
WC bankfinancing
Liquidity 1 Jan 2011
- 12.1
- 41.4
0.5
Dividends to shareholders
Liquidity31 Dec 2011
- 12.2 Tax + interest
- 3.7 Capex
Growth working capital
Focus on Food
Robust financial positionRobust financial position
• Total assets Y/E 2011: € 276 M
• € 112 M equity and enlarged shareholders’ basis
• Successful € 40 M convertible bond fully converted in January 2011
• Solid balance sheet > 40% solvency – key for further growth
• Acquisition debt < 1 x EBITDA
• Ample bank lines in place to finance fluctuations in commodity prices and working capital needs
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Focus on Food
High dividend policyHigh dividend policy
Dividend track record• Dividend will be a substantial part of net cash profits• Dividend will reflect development of results• Dividend reflects nature of the business (asset light)• 2000 – 2011: around 60% of consolidated net result
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25 30 35 40 45 50 55 60 65
2007
2008
2009
2010
2011
2011 2010 2009 2008 2007
Dividend pay-out ratio 57.5% 57.8% 62.0% 65.4% 64.7%
Dividend return as % of average stock price 6.3% 6.6% 9.5% 8.6% 8.0%
Focus on Food
The way forwardReady for further growthThe way forwardReady for further growth
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Focus on Food
Mission Statement & StrategyMission Statement & Strategy
“Our mission is to achieve long-term sustainable growth for our shareholders through consistent growth of
earning per share, allowing for continued high dividend pay-outs representing above-market dividend returns.”
Strategy: Exclusive focus on food
“We will maximise profit opportunities in trading, processing and distribution of food commodities and
ingredients for the food industry”
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Long term growth for
shareholders
Mission
Consistent growth of
EPS
in practice
High dividendpay-outs
allowing for
Focus on Food
Market trends: Origins becoming strongerMarket trends: Origins becoming stronger
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Scarcity of land and
work force
9 Billion people in
2050
Higher consumption
in origins
Changingfood diets
High price volatility
Growingwelfare +
urbanizationFood safety
& quality
Food producers
– food assemblers
Surety of supply
Access to finance
Demand > supply
Focus on Food
Our responses: Diversification and IntegrationOur responses: Diversification and Integration
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Growers& farmers
Localsourcing
Trading &distribution
Value addedprocessing
Semi-finishedproducts
Finished foodproducts (brands)
Forwardintegration services
Backwardintegration services
New products,channels and services
New geographies
Diversification
Focus on Food
Ways to growWays to grow
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Right opportunity,right price, right time
No growth for the sake of size only Growth must support Acomo’s goals
Autonomous growth
• Diversify products, channels, geographies
• Capex investments in the supply chains
• Bolt-on acquisitions in adjacent markets
• Slower, safer, less costly• By and through OpCo’s
Acquisition growth• Substantial• Rapid• By Acomo• Fit in Focus on Food strategy
Focus on Food
Acomo growth criteriaAcomo growth criteria
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Financial robustness
Long-term EPS growth
Strong freecash flow
generation
Strengthen overallmarket position
Characteristics of targets
• Trade and distribution of food commodities & ingredients
• Profitable track record - no turn-around
• Management: experienced - independent - staying in place
• Business-to-business - No consumer products/brands
• Strong market position - proprietary advantages
• Niche products, non-bulk products
Focus on Food
Acomo HO – business units – business modelAcomo HO – business units – business model
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• Acomo HO acts as a strategic and financial holding company˗ Sharing best practices group-wide (s.a. performance, reporting, risk management)
˗ Central treasury and tax function
• Acomo Group uses a decentralized business model – HO staff: 6 FTE
• Business units are run independently˗ With a full Management team consisting of – at least – a MD and FD
˗ Fully responsible for the operations, risk management and financial performance
˗ Each unit supervised by a SB
• Finance structure of units must be robust˗ Equity provided - solvency minimum 30% and preferably 40% - no acquisition leverage
˗ Sound WC financing with ample head room, provided and/or guaranteed by the parent if needed
˗ Dividend paid out to the parent: 100% of annual net profit
˗ Additional investments by parent: based on sound business growth plans
˗ MT incentive scheme based on % of PBT of the respective business unit
Focus on Food
Business unit profilesBusiness unit profiles
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Focus on Food
Catz International - SpicesCatz International - Spices
• Established in 1856 in Groningen, now situated in Rotterdam
• Catz joined the Acomo group in 1982 and has since then been the main and most successful member of the group
• Leading trader in spices, coconut, dried fruit, seeds, dehydrated vegetables
• Over 100 products, 42 employees
• 2011 revenues € 232 M
• Tovano BV: packaged nuts, 6 employees, over € 20 M revenues
• Extremely profitable
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Focus on Food
Van Rees Group – TeaVan Rees Group – Tea
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• Founded in 1819, Van Rees is the largest independent cross border tea trader and processor in the world
• Joined Acomo in June 2010 together with Red River Commodities
• Extensive network and representations worldwide
• 2011 revenues US$ 213 M
• Approximately 125 employees in twelve offices worldwide
Focus on Food
Red River Commodities – Edible seedsRed River Commodities – Edible seeds
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• Established in the early 70‘s
• Joined Acomo in June 2010 together with Van Rees Group
• Leading US supplier of (mainly) confectionary sunflower seeds based product range. Sourcing, processing and distribution of varied seeds
• 4 different business lines: in-shell sunflower seeds, sunflower kernels, consumer products (snacks and SunButter™) and wild bird food.
• RRC owns modern and efficient roasting, salting and packaging operations, accommodating further growth
• 2011 revenues US$ 160 M
• Approximately 250 total staff
In-shell sunflower seeds
Consumer products
Sunflower seeds
Focus on Food
Food Ingredients Food Ingredients
• Tefco was established in 1978, Snick in 1993
• Tefco was acquired by the Acomo Group in August 2006, Snick in February 2009
• Both companies process and distribute manufactured food ingredients
• 300 products, amongst others:˗ Yeast and malt extracts˗ Flavorings˗ Dry and wet mixtures pesto, curry, etc.˗ Marine powders
• Combined revenues 2011: € 15 M
• Total 16 employees
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Focus on Food
King Nuts & Raaphorst - NutsKing Nuts & Raaphorst - Nuts
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• King Nuts & Raaphorst B.V. established in 1973
• King Nuts & Raaphorst became a member of the Acomo Group as from October 1st , 2010
• Distributes nuts, dried fruit and rice crackers, both nationally and internationally
• 2011 revenues € 55 M
• 26 employees
Focus on FoodFocus on Food
The EndThe End
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