apetit plc capital market day 2016 · 2018-11-23 · apetit plc | capital market day 1.3.2016 2...

Apetit PlcCapital Market Day 2016Helsinki, 1 March 2016

Lampa Hall

1.3.2016APETIT PLC | Capital Market Day 1

Programme


Opening address 13.45

Keynote speaker13.50

Direction of the company towards 2018

Break

Direction of Food Solutions

Direction of Grain Trade and Oilseed Products

Mikael Fogelholm, University of Helsinki

PRESENTATIONS BY THE MANAGEMENT

Juha Vanhainen, CEO14.25

20 min.

15.20 Anu Ora, Vice President

16.05 Kaija Viljanen, Vice President

Break20 min.

Direction of Seafood

Summary and questions

17.10 Anu Ora, Vice President

17.55

Dinner6.15 p.m.

Mikko Merisaari, Manager, Communications and IR

17.25 Finances supporting strategy implementation Eero Kinnunen, CFO

Juha Vanhainen, CEO

Introduction of the management


Juha

Vanhainen,

MSc (Tech.)

CEO

b. 1961

Director since 2015

Eero

Kinnunen,

MSc (Econ.)

CFO

b. 1970

CFO since 2006

Anu

Ora,

MSc (Econ.)

Vice President

Food Solutions

b. 1973

Director since 2015

Kaija

Viljanen,MSc (Econ.), BA,

EMBA

Vice President

Grain Trade and

Oilseed Products

b. 1952

Director since 1995

Mikko

Merisaari, MSocSci

Manager,

Communications

and IR

b. 1976

Manager since 2013

Leader in vegetable-based food solutionsJuha Vanhainen, CEO


In this section

• Apetit Group today

• Apetit and its operating environment

• Strategic direction towards 2018


42 %

23 %

20 %

15 %

Apetit Grouptoday


• Apetit produces food solutions based on

vegetables, fish and vegetable oils.

• Apetit is active in the trading of grains,

oilseeds and raw materials for feeds in

Finland and internationally.

• Its customers include consumers, the

retail trade, the HoReCa (hotel,

restaurant, catering) sector and the food

industry.

• Founded in 1950

• Listed on Nasdaq OMX Helsinki in 1989

DISTRIBUTION

OF NET SALES

2015

Grain Trade

Food Solutions

725Personnel2015

Seafood

Oilseed Products

%EUR

million

385 381

0

1

2

3

0

100

200

300

400

500

2014 2015

Net Sales Operational Ebit -%


Eat well,

every day


Apetit andits operating environment

The market is offering no tailwind


The GDP growth rate in Finland will be close to

zero and purchasing power will continue to

decrease

• The retail trade will not grow and total volumes will

decline

• The share of retailers’ private labels will increase,

as will foreign competition in the food industry

• Sanctions reduce export opportunities to Russia for

the food industry

There is the political will to deregulate in Finland,

but there are legislative risks at the EU level

• The free-trade agreement increases competition in

food production

• The increasing restrictions on pesticides is a

challenge to the profitability of agriculture in

Finland

• Smaller agricultural subsidies are a risk arising

from economic difficulties and weaker integration

within the EU


Food imports have grown steadily,while exports are stagnating

1 1181 210

1 323 1 267 1 291 1 220

2 4172 573

2 855

3 205 3 137 3 164

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2009 2010 2011 2012 2013 2014

Export Import

Value of Finnish food exports and imports 2009–2014, EUR million

CAGR 2009–2014: 1.8% CAGR 2009–2014: 5.5%

There is export

potential, and

imports can be

substituted for

domestic products

The food sector in Finland is fragmented; consolidation development is likely

The food sector has a large number of

microenterprises and small businesses

• More than 60% of all businesses are

small, with fewer than 5 people85

12832

34111

123

104

28

237304

162

99

12291

78

78

595181

Source: Statistics Finland 20151.3.2016APETIT PLC | Capital Market Day 11

Global megatrends strongly support the development of a vegetable-based food chain

Impact of the megatrend on Apetit’s business operations

Rapidity of the impact


Dwindling

natural

resources

Climate

change

Globalisation

Population

growthDigitalisation

UrbanisationPopulation

ageing

Changing consumer and market trends call for quicker renewal and responses

An opportunity for Apetit today Requires new competences/changes

Minor impact

on Apetit

Impact on the

GroupWellbeing

Digitalisation

Significance

of pricingEase

Enjoyment

from food

Responsibility

and traceability

Demand

for

vegetable

protein

Minimisation

of environmental

effects Fluctuations

In demand

and

supply

Consumption

as a form of

self-expression


Frozen Foods Fresh Products

Oilseed Products SeafoodGrain Trade

Profitable growth is possible in Apetit’s product groups


• National Nordic and Finnish companies specialising in fresh products

and takeaway solutions

• Organic growth has been strong in the sector

• Most of the competitors are international multi-sector operators

• Consolidation is a key growth path for competitors

• Competition for space in freezers in shops and in consumers’ shopping baskets

• Finland is lagging behind the other Nordic countries in the use of frozen foods

• National Finnish companies specialising in

fish products, Leroy is the only global giant

operating in Finland

• Organic growth has been strong in the

sector, with only a few acquisitions

• International operators specialising in refining

vegetable oils and global multi-sector

companies in foods and agriculture

• Organic growth and growth through

consolidation

• Global or regional multi-sector operators in

agriculture or local grain dealers

• For the largest competitors, the grain trade

is part of their service portfolio for

agriculture

Growth = average annual growth for 2010–2014; EBITDA = five-year average. Segment-specific growth and EBITDA figures are based on comparison groups (local control companies in Finland and the Baltic countries with

regard to grains and oils)

1% 9%Growth EBITDA

4% 7%Growth EBITDA 14% 2%Growth EBITDA 8% 3%Growth EBITDA

9% 6%Growth EBITDA


Strategic direction

Main themes in strategy planning and Apetit’sstrengths provide strategic direction


Main themes of the strategy

planning

• Profitability

• Growth

• Strategy implementation

• Estimates of the

company’s competences

Apetit in 2018

A leader in

vegetable-based

food solutions

Apetit’s identified

strengths

• Expertise and people

• Unique integration with

primary production

• Brand

• Strong balance sheet

Quality

Traceability

Responsibility

Product safety

Trailblazer

Leading company

Health

Wellbeing

Ease

Purity


Food and

service

solutions

Continuous

renewal

Food chainmastery

Wellbeing

from

vegetables

Taste

New

mission

Our mission: We create wellbeing from vegetables

Apetit 2018: A leader

in vegetable-based

food solutions


Apetit’s vision for 2018

Popular employer

Increasingly international

Trailblazer

Preferred partner

#1 in vegetables

Strongest brand


Trends support our chosen strategyEfficient processes and digitalisation create favourable conditions for competitivenessin all of our business operations

WELLBEING

We offer healthy food and ingredient

solutions with a high vegetable content

RESPONSIBILITY AND

TRACEABILITY

We produce responsibly and

traceably, from field to tableEASE

Our food and service solutions make

daily life run more smoothly for

consumers and professionals

ENJOYMENT FROM FOOD

Our tasty products make cooking

fun

Significanceof pricing

Digitalisation

Wellbeing

Ease

En

joym

en

t

from

foo

d

Resp

on

sib

ilit

y

an

d t

raceab

ilit

y


Existing business operations

New business operations

360 degrees of

vegetable-based

eating

is the direction for

our growth

The segments illustrate

our share of vegetable-based

eating in Finland

Total: 280 kg per capita per yearSource: Natural Resources Institute Finland

Growth can be organic or

through M&A

Growth is based on

creating added value

and developing new

product areas and

services.

No presence

SERVICES

Dig

ita

l S

olu

tio

ns

Fo

od

So

lutio

ns

FRUITS

GR

AIN

S

PROCESSING

RAW

MATERIAL

TRADE


The new segment structure will support our strategy implementation

OPERATIONAL

EBITDA

EUR 3.5 MILLION

OPERATIONAL

EBITDA

EUR 4.0 MILLION

OPERATIONAL

EBITDA

EUR 3.4 MILLION

OPERATIONAL

EBITDA

EUR -2.4 MILLION

Food Solutions

NET SALES

EUR 96 million

Grain Trade

NET SALES

EUR 170 million

Oilseed Products

NET SALES

EUR 61 million

Seafood

NET SALES

EUR 83 million

2015


Business segments –strategic focuses and target positions

Food Solutions

Frozen + fresh

vegetable solutions

Grain TradeGrain, oilseed and the

animal feedstuff trade

Oilseed Products

Vegetable oils and

expeller

Seafood

Targeted

market

position

Leading brand in

vegetable-based food

solutions

Product leaderThe most reliable

partner

with the best

services

Most reliable

and cost-effective

#1

#1

Brand

Pre-prepared

fruit and

vegetables

#1 in Finland#1-2

#1-3

in Finland

in the Baltic

countries

#1-3 In volumes

Strategic

focus

Strategic guidelines


Growth through higher value-added

products and an attractive brand

Increased agility, with a focus on the

production and commercial scale

Primary production in partnership networks

through closer cooperation

Leader of digitalisation in primary production

and the consumer interface

New opportunities and industrial symbioses

for the food chain from the bioeconomy

Investment in services and international

sales

All business operations must be

profitable over the long term

We are open to sector solutions that

are suitable for our strategy

Continuous improvement and

development of competitiveness

The guidelines mean changes to our current operations

• Competences and resources will be increased in product development and innovation

• Investment in traceability from producer to consumer

• We will continue to build our subcontractor network to ensure more flexible production capacity and the

more rapid renewal of our product portfolio

• We will bring pre-prepared fruit and vegetable solutions to retail

• Development of quick and efficient logistics

• Competences and resources will be increased in product development and innovation

• Investment in our cooperation models for expansion in the Baltic countries

• We will develop partnership models

• Investment in higher value-added product development

• Refocusing the fish products

• Focus on reliability and efficiency


Frozen Foods

Fresh Products

Oilseed

Products

Seafood

Grain Trade

Conditions for strategy implementation –competences


Creating a culture of innovation and

experimentation

Increasing agility and dynamism

Strengthening project-focused and goal-

orientated leadership

Strengthening product development

Strengthening the brand

Building a partner and subcontractor

network

Allocating resources to international sales

Making use of synergies within the Group

Key Indicators and incentive plans

Continuous identification of options

Better readiness for implementation and

integration

25

Organic growth Growth through M&A


Aiming for profitability and growthApetit Group’s financial targets for 2018

* EBITDA – investments

Financial

target for

2018

Target for

organic growth

EBITDA

7.5% in 2018(2015: 3.7%)

ROCE

14.0 in 2018(2015: 12.1%)

Cash flow after

investments:

clearly positive for the

strategy period*

Food Solutions

An increase of

20% in net sales by the end 2018

Grain Trade

> 1 million

tonnes in annual

sales volumes in 2018 (2015: 0.83 Mt)

Oilseed Products

Share of packaged and

special products

of net sales: 34%in 2018 (2015: 28.4%)

Seafood

We will focus on

improving the cash

flow

GROUP

SEGMENTS

EBITDA

7.5% in 2018(2015: 5.5%)

• GROUP ROCE > 10%• EBITDA in 2018: EUR 20 million or more (2015: EUR 8.5 million)

• An equity ratio of at least 40% (2015: 61.1%)

thank you.

Food SolutionsAnu Ora, Vice President


In this section

• Food Solutions today

• Trends

• Strategic guidelines

• Product groups:

• Frozen foods

• Fresh products

• Summary

291.3.2016APETIT PLC | Capital Market Day

50 %24 %

26 %

94 96

-1

0

1

2

3

4

5

0

20

40

60

80

100

120

2014 2015

Net Sales Operational EBIT-%

Food Solutions today


Frozen foods and vegetables

• The leading producer of frozen

vegetables and foods in Finland

• Products mainly based on Finnish

ingredients

• Sustainable, responsible farming

practices play a key role in vegetable

procurement

Fresh products

• Ingredients for good meals for the

professional food service sector

• Fresh and ready-to-use vegetable and

fruit products and ready-made salads

Service sales

• Customer-focused service counter

concepts that combine a delicious

selection of high-quality products with

good service experiences

DISTRIBUTION

OF SALES

2015

Frozen foods

Fresh products

Service

sales

Pudasjärvi

Helsinki

Säkylä

%EUR

million

434Personnel


Trends

Trends related to food and eating are changing more rapidly than ever before

An opportunity for Apetit today Requires new competences/changes

Minor impact

on Apetit

Impact on the

GroupWellbeing

Digitalisation

Significance

of pricingEase

Enjoyment

from food

Responsibility

and traceability

Demand

for

vegetable

protein

Minimisation of

environmental

effectsFluctuations in

demand and

supply

Consumption

as a form of

self-expression



The product groups have strong synergies in procurement and commercial operations

Contractgrowing

Procurement

Production Logistics

Production Logistics

Brand and product development

Sales

Bioenergy

Retail

HoReCa

Food industry

Frozen foods

Joint

Fresh products

Experi

mental

farm

• Semi-finished products

• Production / processing / packaging

One Apetit

• Production

• Further processing

• Collection

• Synergies

• Potential

Own operations

Customer

PRODUCTION OF FRESH PRODUCTS

PRODUCTION OF FROZEN FOODS

The vegetable boom is evident in all customer segments

Retail

The demand for vegetables is growing

• Fruit and vegetable volumes have

grown steadily in recent years

• Salad bars and other convenient

concepts are becoming more common

Continuous competition for shelf space

• The growth of the selection of frozen

foods and chopped fresh vegetables

depends on investments in equipment

in the retail sector

Quicker and easier solutions for cooking

at home

• Quicker and easier solutions are

particularly interesting to small

households and grocery shops in towns

and cities

• Grocery shops are increasingly turning

into restaurants

HoReCa

The use of vegetables is increasing, and

their role is increasingly important

There is demand for fresh products

• Shelf-life and wastage hinder

development

Frozen foods have a competitive

advantage over fresh products

• Their benefits include wastage

management and price

Price-driven market

• Competition is particularly tight for

customers with chain-like operations

34

Industry

Strong demand for vegetable-based

components

Erosion in the market for ready-to-eat

food products

• Will be replaced with new products,

with vegetables still playing an

important role as ingredients

Key customer segments

FROZEN

FOODS

Net sales

by customer segment

FRESH

PRODUCTS

71 %

20 %

9 %

25 %

75 %


Retail

HoReCa Industry

36

The strategy of Food Solutions is to make Apetit the product leader in its categories


Easy Delicious

Wellbeing – the leading

brand in vegetable-based

food solutions

R&D

Product

portfolio

renewal

Other

vegetable-

based

products

Services

Digitali-

sation

Exports

A customer-focused approach

to strengthening product

development and selection

Increased added value through services

Making use of digitalisation in

strengthening primary production and the

consumer experience

Expansion in vegetable-

based categories and

outside Finland

Frozen foods


Responsible farming: a differentiating operating method, lays a strong foundation

• Apetit created its responsible farming practices

in cooperation with farmers

• Ensures carefully and responsibly grown, traceable, high-quality

ingredients for Apetit products

• The method covers general farming practices, plant-specific

growing guidelines and the effective management of the quality,

product safety and environmental aspects

• Plant protection measures are only carried out when necessary, in a

timely manner, primarily using biological or mechanical methods

• All cultivation measures are entered into the ViRe contract grower

data system

• Readiness for organic certification

The origin of responsibly grown Apetit ingredients is traceable to

each product by using the batch code and the best-before date.

38

From field to the table

+100 contract farms within a radius

of 100 km from Säkylä

Harvesting from field to freezer

takes only a short time, even as little

as two hours


Contract farmers Marja-Liisa Mikola-Luoto and Mika Luoto

The Apetit experimental farm in Köyliö is unique in Finland


• All vegetable varieties are tested

in terms of quality, taste and

yield at the experimental farm in

Köyliö before they are taken into

use

• Ecological cultivation methods of

the future are tested as well

• The experimental farm

operations ensure that Apetit

farmers always have access to

the latest knowledge about

cultivation methodsPest control by means of horticultural

fleece that is permeable to light and

moisture was studied in a mulch test for

celeriac

The purpose of the experimental farm

operations is to promote the adoption of

new, ecological cultivation methods in

Finland

The competitive advantages of frozen foods include strong primary production and high quality

• The sector is consolidated

internationally

• Wide selection,

global logistics

• Retailers’ private labels are growing, with

production being transferred abroad.

This increases competition.

• Competition for shelf space, even with

other product categories

• Unique field-to-table traceability

• Finnish ingredients

• Well-known brand

• Taste and quality


Competitive edge

41

Aiming for stronger brand leadership in frozen products

Renewal is based

on

commercialising

mainly Finnish

vegetable-based

ingredients as

food solutions

Increasing international

operations

Further investment in product

development

and innovation + gaining a strong

foothold in new product

categories

Enhancing process efficiency

Increasing the flexibility of production

in our own production and through

networks

Strengthening the brand and

brand image

Making use of service sales and

digitalisation

Accelerating renewal


new growth.

improving the soil.

0%

5%

10%

15%

20%

25%

0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 %

Apetit’s investment in R&D has been markedlysmaller than that of the largest operators in the field

Investment in R&D: EUR 60 million on average for 2010–2012; net sales for the sector: EUR 11 billion in 2012. Sources: Statistics Finland, companies’

annual reports

Profitability,

EBITDA (%), 2014

Research and product development expenses,

% of net sales in 2014

Investment by global food giants in

development is double that of the largest

Finnish companies

Investment by major brands in

Finland in development operations is

multiple times that of Apetit


Apetit

Apetit will increase investment in product development and innovation

43

• New ways of using vegetables

• Healthy snacks and treats

• Meals and components that increase

wellbeing

• Fibre, protein, nutrient density

• Senior citizens and families with children

• Microwave-ready frozen meals

• Easier daily cooking

• Entirely new product areas and groups


Easy, Delicious Wellbeing

Fish cakes made with lake fish: an example of a sustainable new product


Apetit used lake fish to develop a delicious,

ecological product for a demanding target group

• Apetit Järvikalapihvi fish cakes were introduced in late

2015

• Product development in cooperation with the

professional food service sector, based on the naturally

good taste of lake fish, aiming for high nutritional

values

• The ingredient is a product of fish stock management,

with a short processing cycle

• Sales have exceeded expectations and the introduction

of a consumer product is being consideredThe product contains no lactose, gluten or soy but

is rich in omega-3 fatty acids and vitamin D

The digitalisation of services related to food and eating is changing the traditional value chain


We will provide consumers with an

opportunity to trace products and purchase

them directly from farms or have them

grown on farms

We will further develop our current

operating model for service sales and

create digital solutions

An idea that makes use of digitalisation

and will transform the structures of the

sector

Service counter

of the future

Food

as a

service

Virtual farmers’ market

Fresh products


0

500 000

1 000 000

1 500 000

2 000 000

2012 2013 2014 2015

Frozen Fresh

The market for fresh fruit and vegetables in Finland is more than 20 times the size of the market for frozen products


Sales of fruit and vegetables in the retail trade* (EUR 1,000)

* Management estimate Frozen products, incl. vegetables, potatoes, berries

The market for pre-prepared fresh vegetables has a large number of small businesses

• The field is fragmented in terms of

competition

• Growth in the sales of fresh fruit and

vegetables is attracting companies to the

fresh product market

• The pre-processing of fresh products

is challenging:

• freshness, shelf life, harvest seasons

• The role of wholesalers as a distribution

channel is strengthening

• Strong resources for development in

comparison to smaller competitors

• Quality: investment in freshness/shelf life

• Reliable consumer brand

• Customer-focused and co-development


Competitive edge

49

Aiming for product leadership in fresh vegetable productsin Finland

The leading brand

in fresh vegetable-

based food

solutions

We will expand into the fruit

and vegetable section in

retail by means of fresh

products

Investment in freshness and

the best product quality

Efficient production and

procurementDevelopment of distribution

channel cooperation

Stronger customer

relationships


new growth.

improving the soil.

Apetit Tuorekset

ensures success when cooking healthy vegetable-based meals at home


Apetit Tuorekset: Expansion into the fruit and vegetable section in retail

The fruit and vegetable section of the future offers easier ways to enhance wellbeing


NOTE! This is a screen-

optimised image


When healthy eating becomes easy and delicious

52

Children will love them, and

even men will be happy to

prepare them

No more peeling, washing or

chopping. No wastage at home.

The unique packaging will

keep the vegetables fresh.


Apetit Tuorekset: Investment in freshness and the best product quality

We ensure high quality and freshness are key

53

• Developing and testing quality and shelf-life is a

long-term process

• Using the optimal techniques, we ensure shelf-

lives of up to 7 days for various vegetables in

accordance with quality standards

More than 4,000

freshness and quality

tests over a period of

12 months


Attributes

of ensuring

freshness

Ingre-

dients

Processes

Packaging

Temperatures

Apetit Tuorekset: Expansion into the fruit and vegetable sector in retail

Production of fresh products in the middle of the Helsinki Metropolitan Area


• Fresh products will be prepared in Kivikko in Helsinki, a central

location in terms of logistics

• The investment projects required for ensuring production capacity

are nearing completion

• Ready for production in March 2016

• Possible to increase production rapidly

Apetit Tuorekset: Expansion into the fruit and vegetable sector in retail

Apetit Tuorekset fresh products will be piloted in April and introduced in early autumn 2016


• The product and concept development process

started in 2014, with dozens of professionals

participating

• Piloting will start in April 2016

• The Apetit Tuorekset concept will be tested

nationally

• The sales volumes of various selections and

products and the effectiveness of various product

displays and communication options will be tested

• Around 60–65 shops of different sizes will

participate

National product launch in early autumn 2016 Kuulas, 2015


Potential: 60% of Finns would buy Tuorekset products at least once a week


The increasing use of vegetables is a strong trend.

Finns already consume more than 360 million kilos

of fresh vegetables per year

In a consumer survey, more than 70% of consumers

considered the Apetit Tuores concept to be interesting

and 17% considered it to be very interesting

Nearly 60% of Finns would buy Tuores products at least

once a week

= potential to transform the fruit and vegetable

sector in retail and Finns’ use of vegetables

“How often do you think you would buy

Tuores products?”

Several times

per week

19%

Approximately once

per week

40%

1 to 3 times

per month

25%

6 to 11 times

per year7%

2 to 5 times

per year7%

Approximately once per year

or less often 2%

59%

Kuulas, 2015

Natural Resources Institute Finland, Balance Sheet for Food Commodities 2010–2014, excluding fruit and berries

Finns use around 22 million kilos of frozen vegetables per year.


Summary


Food Solutions: summary

Strong growth in fresh product

sales through Tuores products

and other new fresh products

Resuming growth in frozen

products through selection and

brand image renewal

Developing digital service

concepts to strengthen the

customer experience

and create new growth

Goals for 2018:

In Food Solutions, an

increase of

20% in net sales

by renewing the existing

product portfolio and

expanding into new

product areas

New products and concepts for the

frozen product category

New growth

from Tuorekset products, considerable

potential

Reaching an entirely new level of

service experiences through

digitalisation

Making use of the export potential in

Arctic vegetable solutions

Goals for 2018:

EBITDA

7.5%

(2015: 3.7%)

thank you. APETIT PLC | Capital Market Day

Direction of Grain Trade and Oilseed ProductsKaija Viljanen, Vice President


In this section

• Grain Trade and Oilseed Products today

• Market trends and the operating environment

• Direction of business operations

• Grain Trade

• Oilseed Products

• Summary


Grain Trade today


An expert in grain, oilseed and the

animal feedstuff trade

• Broad-based expertise in grain

trade business operations

• Operates in several markets

• Personalised customer service

• A flexible operating method in

rapidly changing markets

DISTRIBUTION

OF NET SALES

2015

Finland

Exports & intl.

45 %

55 %

88 Avena personnel 2015

172 170

0

1

2

3

4

5

0

40

80

120

160

200

2014 2015

Net Sales Operational Ebit-%

%EUR

million

Oilseed Products today


Producer of excellent oils and

expeller

• The only major oil milling plant in Finland

• Environmentally sound production process,

with no chemicals

– The healthy microcomponents of the

rapeseeds remain in the oil

• The main raw material is Finnish rapeseed

• More than 99.9% of the seed is used

• Protein feed created in the refining process is

a valuable ingredient in farm animal feed.

• Exports are focused on the Nordic countries

69%

31%

Kirkkonummi

63 61

0

2

4

6

8

0

20

40

60

80

2014 2015

Net Sales Operational Ebit-%

Finland

Exports & intl.

DISTRIBUTION

OF SALES

2015

%EUR

million

88 Avena personnel 2015

The share of special oils and packaged oils will increase


Food industry HoReCa Consumers

Trends andoperating environment



The grain and oilseed markets operate in a global environment

Impact of the megatrend on Avena’s business

operations

Rapidity of the

impact

Dwindling

natural

resources

Climate

change

Globalisation

Population

growthdigitalisation

UrbanisationPopulation

ageing


Change factors affecting the grain- and oilseeds-based food chain

An opportunity for Avena today Requires new competences/changes

Minor impact

on Avena

Major impact on

Avena

Wellbeing

DigitalisationSignificance

of pricing

Ease

Responsible

approach and

traceability

Demand

for

vegetable

protein

Minimisation of

environmental

effects

Consumption

as a form of

self-expression

Fluctuations

in

demand and

supply

Enjoyment

from food

0

200

400

600

800

1 000

1 200

1 400

05 06 07 08 09 10 11 12 13 14 15

Finland Estonia Latvia Lithuania (approx.)

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

05 06 07 08 09 10 11 12 13 14 15

Finland Estonia Latvia Lithuania (approx.)

Total production of oilseeds by country 2005–2015 Total production of grains by country 2005–2015


The total production of oilseeds and grainshas grown rapidly in the Baltic countries

1,000 tonnes GAGR

2005–2015

Total:

6.4%

-2.4%

7.9%

4.6%

9.8%

GAGR

2005–2015

Total:

4.6%

-0.8%

6.8%

6.5%

8.3%

1,000 tonnes

0

100

200

300

400

500

600

3.1.2000 3.1.2002 3.1.2004 3.1.2006 3.1.2008 3.1.2010 3.1.2012 3.1.2014 3.1.2016

Wheat Rapeseed Soya bean Corn

Price development for key raw materials in the 2000s, EUR per tonne


The volatility of the market prices for raw materials has increased significantly since 2007

Sources: Euronext, CBOT futures prices

EUR per tonne

Our success is based on our broad-based expertise in the grain and oilseed markets


Factors affecting the prices

of grains and oilseeds:

• Weather

• Harvests: quantity and

quality

• Supply and demand

• Stock levels

• Political factors

• Economic development

• Currency exchange rates

Avena operates profitably in all

market situations

• Decision-making is based on

continuous monitoring and

analysis of the markets

• Extensive networks of contacts

in various markets

• Selling and buying

at market prices

Risks and

risk management

• Liquid markets

• Commodity derivatives

for price hedging

• Risk limits for trading

Grain Trade



72

The customers in the grain value chaininclude both producers and users

Farming Variety improvement:Production and sale of production input

Grain trade

Grain-based food products (flour, crushed grain, pasta)

Stock farming Dairy and meat industries

Bioenergy

Retail

HoReCa

Food industryGrain processing

Grain exports

Sales to farms

Grain sales to industry

Grain purchasesfrom farmers

Grain value chain

Other grain-based industriesCurrent operations

Other operators in the value chain

End customer


Our share of Finnish grain exports is 40%

Our share of Finnish

grain exports is

around 40%

The export

destinations vary

according to

demand and supply.

Key destinations

typically include:

• EU countries

• North Africa

• Middle East

Sales

in Finland

EUR 77 million

Exports

from Finland

EUR 54 million

International

trade

EUR 39 million

Distribution of sales in 2015

Expertise in procurement and sales are key competitive factors in the grain trade


25%*

15%

5%

Finland

3.5–4.5 million

tonnes

Estonia

1.1–1.5 million

tonnes

Lithuania

5.0–6.5 million

tonnes

1%

Latvia

2.0–2.5 million

tonnes

Our market share in

Finland has grown in

recent years

50-60 %

35-40 %

5-15 %

PROCU-

REMENT

Finland Baltic countriesIntl.

Finland

35-45 %

Exports and intl.

55-65 %

Mill industry

15-25 %

Other

25-35 %

Feed

industry

45-55 %

Market shares in

grain procurement,

management estimate

The distribution of

sales varies annually

* Share of the grain on the market in Finland, approx. EUR 2 million per year

Market size

A high level of professional skills creates success in the changing markets


• The volume of the international grain

trade is increasing

• The importance of the Baltic Sea region for

exports has increased

• Our market share in Finland has increased

since 2000

• Special characteristics of the competition

• Competition in procurement and sales

• Includes multi-sector operators in agriculture

• Also includes cooperation partners and

customers

• Consolidation, with new operators entering

the market

• High level of professional skills

• Operations in multiple markets

• Quality of operations at all stages

• Well-coordinated operating method

• Customer focus

• Large deliveries with consistent quality

• Various origins

• Possibility of customised deliveries

• High level of product safety

Competitive edge


Grain trade – strategic focuses

The most

reliable partner

for the grain

trade, with the

best services

Aiming for strong growth

in the grain and oilseed

trade in the Baltic

countries

New growth through digitalisation

at the customer interface and in

the optimisation of internal

streams

Development of trading

models

Development of logistics,

particularly in the Baltic countries

Effective use of net working

capital

Growth in market shares and

cooperation partnerships in

Finland

Grain products

new growth.

improving the soil.

Aiming for strong growth in the grain and oilseed trade in the Baltic countries


• The grain market in the Baltic

countries has developed strongly

since the Baltic countries joined

the EU in 2014

• The modernisation of production

and the development of

cultivation methods have

increased the area under

cultivation and harvests

• A considerable number of large

farms (more than 1,000 ha)

• Significant export surplus

• Avena has a firmly established

position in the Baltic market

• Subsidiaries in Lithuania (since

2005) and Estonia (since 2009)

• A subsidiary established in Latvia

will begin purchasing when the

harvest for summer 2016

becomes available

We will further develop logistics

in the Baltic countries so as to

support growth

Best digital tools for farmers:

avenakauppa.fi


• Market information to support

purchasing decisions

• Newsletter

• Avena Online Store

• Price alerts

• Monitor changes in prices

• Alerts via SMS when the price

exceeds or falls below the level

set by the grower

• The price calculator can be

used to calculate a quality-

based price for grain or

oilseed batches, with a quote

for transport

• Information about prices and

reception locations always

available

• Current prices

• Forward prices

• Prices can be determined at any

given time

• We are continuously

developing new services for

the Avena Online Store at

www.avenakauppa.fi

Our investment in the Inkoo port enables exports to grow


We invested EUR 1.9 million in

the development of the grain

terminal at the Inkoo port in

2015.

• The port infrastructure and grain

stores enable direct deliveries to the

port, thereby decreasing the need for

intermediate storage

• In addition to smaller ships, the port

has the capacity for Panamax-class

ships (up to 60,000 tonnes)

• The port is open during most of the

year

New opportunities for Avena

• A broader range of more efficient services

• Strengthens its position in grain procurement in

Finland

• Facilitates operational development in the

international markets

• Enables the large-scale shipping of exports over

longer distances

Benefits for farmers

• Deliveries directly to the port

from farms

• Shorter transport distances in

southern Finland

• Deliveries to warehouses at the

port and directly to ships


Summary


Strategic targets for Grain Trade

A significant increase in

procurement and the

development of logistics in the

Baltic countries to increase

trading volumes

Strengthening close customer

relationships through

partnerships and the expansion

of existing cooperation

relationships

Goals for 2018:

> 1 million

tonnes in annual

sales volumes

(2015: 0.8 million

tonnes)

Goals for 2018:

ROCE 14.0%

(2015: 12.1%)

Establishing a stronger foothold

in the Baltic market

New growth through partnerships

The most advanced digital services to

support logistics and the grain trade

Effective use of net working capital

Oilseed products



The most significant purchaser and refiner of oilseeds in Finland and a developer of domestic rapeseed growing

Variety improvement

Production and sale of production inputs

Farming Oilseed purchases from farmers

Stock farming

Oilseed processing

Packaging of oil

Retail

HoReCa

Bioenergy Feed industry

Food industry

Oilseed value chain

Current operations


Customer

Market leader in food oils in Finland


• The demand for nutritional oils is

growing globally

• International competition is increasing,

particularly in basic products

• Competitors in nearby areas mainly

focus on basic products

• Developer of the sector

• High quality and reliable deliveries

• Efficient, natural production

• Domestic content

• Expertise in trading

• Flexible operating method

competitive edge.

Oilseed product sales focus on Finland and the Nordic countries


We purchase and process more than

90 percent of Finnish rapeseed

DISTRIBUTION

OF PROCUREMENT(approx.)

The distribution of

sales varies annually

HoReCa

13 %

Feed

46 %

Food

industry

39 %

DISTRIBUTION

OF SALES2015

Finland

40-50 %

Baltic countries

45-60 %

Other countries

0-10 %

Retail

2 %


Aiming for product leadership in oilseed products

The best

products –

customers’

preferred

choice

Oilseed-based products

based on new technologies

Expansion within the market

for packaged products and

special products

Developing inbound and

outbound logistics at the

Kirkkonummi oil milling plant

Investing in research and

development operationsIncreasing the capacity of the production

plant and oil packaging plant

Oilseed products

with higher margins

Development of rapeseed cultivation in

Finland

new growth.

Improving the soil.

Rapeseed holds significant potential: an excellent raw material offering a large number of product development opportunities

• An optimal combination of omega-3 and

omega-6 fatty acids, which are essential

for the body.

• Rich in vitamin E: a natural antioxidant

that protects the body from free radicals

and oxidative stress

• Contains other important natural

microcomponents

• Prevents heart diseases and memory

disorders

Rapeseed protein

• A unique combination of amino acids

suitable for human and animal nutrition

Part of daily wellbeing and a well-

balanced diet

The body is incapable of producing crucial

omega-3 and omega-6 fatty acids, so their

sufficient intake must be ensured every day

Two tablespoons of rapeseed oil contains a

sufficient daily intake of these necessary fatty

acids.


Rapeseed and rapeseed oilUse of vegetable oils for food in

Finland (2013):

5.2 kg per person

Source: Natural Resources Institute Finland, Balance Sheet for Food Commodities 2013

In-depth R&D:

Rapeseed holds significant potential for processing


• Investment in the further processing of rapeseed

and protein components in particular

• The goal is to develop:

• Special oils for various purposes of use

• Oils rich in antioxidants that enhance wellbeing

• Functional oil products

• New protein products suitable for human and

animal nutrition

• New technologies for the further processing of

oilseed components

• R&D projects make use of networks that include

research institutes and universities

IMAGE:

In-depth

R&D

Products rich

in

antioxidants

Making use

of oilseed

micro-

components

Protein

concentrates

An example of in-depth R&D:

Dogi Oil – a new type of Finnish nutritional oil for dogs


DOGI OIL

A new type of Finnish

nutritional rapeseed oil for

the care of a dog’s skin and

coat

• Contains natural phenolic

antioxidants and vitamin E

• Essential fatty acids

(omega-6

and omega-3)

• Linoleic acid for the

wellbeing of the skin

Consumer testsConsumer tests were carried

out for the oil (n= 350)

• The product was

considered to be effective,

and there is a good level

of demand for it

• Consumers appreciated its

Finnish origin

The product was

introduced on 1 March

2016

Market potential

Of the around 650,000 dogs

in Finland:

• Around 50% are given

ordinary oil (e.g. rapeseed

oil) or special oil either

daily or periodically

> 300,000 dogs

• The product is ideal for

international and online

sales as well

The investment in extending the packaging plant will increase the volume of and export opportunities for packaged products


• The demand for packaged vegetable oil

products has continued to increase in

Finland

• The capacity of the existing packaging

plant will be increased, and an investment

project to expand the plant is in progress

• The extension will be inaugurated in

summer 2016

• It will enable us to increase the volume

and number of packaged products

• We will seek growth mainly by entering the

Swedish market during spring 2016


Summary


Strategic targets for Oilseed Products

The existing production process

will be supplemented by oilseed

products with higher added-

value

Innovative research on the

qualities of rapeseed as a raw

material and vegetable oils

through in-depth research and

development work

Goals for 2018:

Share of packaged

and special products

of net sales:

34%(2015: 28.4%)

Goals for 2018: EBITDA

7,5%

(2015: 5.7%)

Increasing the capacity of the

packaging plant

Further developing rapeseed

cultivation in Finland

Building a strong research and

development project portfolio

Rapidly commercialising new

innovations

Direction of SeafoodAnu Ora, Vice President


In this section

• Seafood today

• Strategic guidelines

• Summary


Seafood today


• Apetit is a major manufacturer of Norwegian

salmon and rainbow trout products in Finland

• Maritim Food Group, a company of the Apetit

Group, processes and sells a wide variety of

fish and shellfish products in Norway and

Sweden

• Most processed products are sold under

retailers’ private labels

• Retail service counters represent a significant

share of fish sales

DISTRIBUTION

OF SALES

2015

Finland

Norway

55%

20%

Sweden

25%

8993

-5

-4

-3

-2

-1

0

0

20

40

60

80

100

2014 2015

Net Sales Operational EBIT-%

%EUR

million198Personnel2015

97

Excellent procurement expertise and efficient processing are important in the value chain

Bioenergy

Service counters

HoReCa

Food industry

Retail

Fishfarming

Norwegian salmon

Procurement Logistics Fish cutting

Rainbow trout and other sea fish

Lake fish

Processing of fish

Collectionand

outboundlogistics

Subcontracting


Current operations


End customer

A reliable, efficient partner with sufficient capacity


• The wellbeing trend supports the

increased consumption of fish

• Retailers’ private labels play a key role in

all countries of operation – no clear

brand leaders in Finland

• Campaign-driven price competition is

intense in retail in Finland

• Consolidation development is likely: the

market for processed products in

particular

has a large number of smaller operators

• An attractive partner with sufficient

capacity

for central purchasing organisations

• Reliability and service security

• Efficient procurement and logistics

• Quality

Competitive edge

99

In Seafood, we are focusing on excellence in production and operations


A reliable

and competitive

partner

Expansion

of

customer

relationships

Investment in

efficiency

Focusing

We are developing Seafood

separately from

brand business operations

We will strengthen our

position with selected

customers and will focus

primarily on production for

retailers’ private labels and on

fresh fish

We will make only

efficiency-driven

investments with a short

payback period

Investments in efficiency in Kuopio


• Our primary fish processing plant in

Finland is located in Kuopio. We

centralised operations there in 2015.

• In late 2015, we made the decision to

invest in process efficiency in Kuopio

to automate production.

• The investment includes e.g. filleting

and head-cutting equipment

A popular product under a retailer’s private label in Norway: Fiskeburger


• Maritim Food, a subsidiary of the

Apetit Group operating in

Norway and Sweden, is a

significant producer for retailers’

private labels

• Fish cakes are a rapidly growing

segment, particularly in Norway

• We introduced a fish cake in

Norway in 2015

• Its first-year sales were around

300 tonnes, with a growth rate of

almost 40% predicted for 2016

The cakes have a fish content of more than 80%


Summary

0

Profitability programmes are progressing

• The profitability programmes of the Fish

Products group progressed in 2015

• In Finland, its network of operation units,

product selection and production processes

were streamlined strongly

• Successful product launches improved

profitability in Norway Sweden recovered from

the increase in raw material prices caused by

shellfish


Operations in

Norway and Sweden

Operations in

Finland

Implementation of the profitability programme in Finland

Profitability development in fish product groups

in 2015 (rolling 12 months)

104

Strategic target: price-to-quality leadershipand a positive cash flow

Targets for

2016–2018

Clearly positive

cash flow* for the

strategy period

Shifting the focus of

business operations

away from brand

business operations

Focus on volume and

value-added products,

particularly retailers’

private labels

Investment in operational efficiency

and competitiveness


No strategic growth initiatives or

investments with a long payback period


Financial means supporting strategy implementationEero Kinnunen, CFO


In this section

• Apetit share today

• Segment structure and reporting

• Seasonal variation

• Investment

• Balance sheet

• Dividends


25,6 %

7,2 %

10,8 %46,4 %

5,9 %

0,1 %4,0 %

Apetit share today

Basic information

• Market capitalisation (29 Jan 2016):

EUR 79.8 million

• Average trading volume: 2,688 shares (3

Jan 2015 to 29 Jan 2016)


Major shareholders (29 Jan 2016)

PERCENTAGE OF

SHARES

IN 2015

Companies

Financial and

insurance institutions

Public sector entities

OwnerNumber

of shares%

Number

of votes%

Sievi Capital 635,596 10.1 635,596 10.3

Valio Pension Fund 520,108 8.2 520,108 8.4

Esko Eela 392,392 6.2 392,392 6.3

Nordea Nordic Small

Cap Fund347,860 5.5 347,860 5.6

EM Group 314,520 5.0 314,520 5.1

Jussi Capital 188,168 3.0 188,168 3.0

Central Union of

Agricultural Producers

and Forest Owners

(MTK)

125,485 2.0 125,485 2.0

Jussi Invest 101,000 1.6 101,000 1.6

Norvestia 74,294 1.2 74,294 1.2

Municipality of Säkylä 59,822 0.9 59,822 1.0

Ten largest, total 2,759,245 43.7 2,759,245 44.5

Nominee-registered

shares249,964 4.0 249,964 4.0

Other shareholders 3,185,178 50.4 3,185,178 51.4

Held by outsiders, total 6,195,287 98.1 6,195,287 100.0

Treasury shares 122,289 1.9 - -

Total 6,317,576 100

Market making agreement with S-Bank

• S-Bank undertakes to quote prices for at

least 85% of the continuous trading time

and in the auction procedures applied

during the trading day

• The minimum number of shares in

binding buy and sell quotations is 500 or

the amount of shares involved in a

trading value of at least EUR 4,000.

• The maximum spread of buy and sell

quotations can be 3%, calculated using

the buy quotation

Households

Non-profit

organisations

Foreign countries

Register of nominee-

registered shares

0

5

10

15

20

25

01/2011 01/2012 01/2013 01/2014 01/2015 01/2016


Segment structure and reporting

New segment structure and reporting (2016-)

Net sales, EUR million 2014 2015

Food Solutions 94 96

Grain Trade 172 170

Oilseed Products 63 61

Seafood 89 83

Intra-Group sales -34 -30

Total 385 381

Operational EBITDA, EUR million

Food Solutions 7.1 3.5

Grain Trade 3.1 4.0

Oilseed Products 4.1 3.4

Seafood -2.6 -2.4

Total 11.7 8.5

Operational EBIT, EUR million

Food Solutions 3.1 -0.1

Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5.5 2.6


New division into

segments as of the

beginning of 2016

New operational key

figures as of the

beginning of 2016



Grain Trade 172 170


Seafood 89 83


Total 385 381



Grain Trade 3.1 4.0


Seafood -2.6 -2.4

Total 11.7 8.5



Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5.5 2.6


The Grains and

Oilseeds business is

divided into

- Grain Trade

- Oilseed Products




Grain Trade 172 170


Seafood 89 83


Total 385 381



Grain Trade 3.1 4.0


Seafood -2.6 -2.4

Total 11.7 8.5



Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5.5 2.6


Seafood is reported

as a separate

segment

The segment

includes seafood

business operations

in Finland, Sweden

and Norway




Grain Trade 172 170


Seafood 89 83


Total 385 381



Grain Trade 3.1 4.0


Seafood -2.6 -2.4

Total 11.7 8.5



Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5.5 2.6


The most significant

items in intra-Group

sales:

• Oilseed sales from

Grain Trade to be

processed by

Oilseed Products

• Fish sales from

Seafood to Food

Solutions for e.g.

service sales




Grain Trade 172 170


Seafood 89 83


Total 385 381



Grain Trade 3.1 4.0


Seafood -2.6 -2.4

Total 11.7 8.5



Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5.5 2.6


The Other

Operations segment

was discontinued

The Group

Administration costs

are allocated evenly

to the four segments




Grain Trade 172 170


Seafood 89 83


Total 385 381



Grain Trade 3.1 4.0


Seafood -2.6 -2.4

Total 11.7 8.5



Grain Trade 2.9 3.8


Seafood -4.0 -3.8

Total 5,5 2.6


The Sucros holding

will be reported after

Operating profit as of

the beginning of

2016



Seasonal variation

-0,1

0,2

1,6

3,8

-1,6

-0,3

1,8

2,7

-2

-1

0

1

2

3

4

5

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Operating EBIT for 2014–2015 by quarter, EUR million

117

Seasonal variation is clearly evident in the Group’s operational EBIT

• The recognition of the fixed

production overheads

included in historical cost as an

expense item is deferred until the

time of sale.

• For this reason, most of the Group’s

annual profit is accrued in the final

quarter.

• The seasonal nature of operations

is most marked in the Food

Solutions’ frozen foods group,due to

the link between production and the

crop harvesting season.

• In Seafood, the Christmas season

improves profitability for Q4

EUR million


Net working capital and its changes by quarter, EUR million

118

...and is reflected in changes in net working capital

• Grain Trade has the highest degree

of variation:

• Working capital is strongly tied up,

particularly in Q3

• A decrease in stock levels at the

beginning of the year

• With production focusing on harvest

time, raw materials are processed

into finished products mainly during

the final quarter of the year

EUR million

0

10

20

30

40

50

60

70

80

2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 Q1/15 Q2/15 Q3/15 Q4/15 2015

On the balance sheet at year-end

Decrease from the end of the previous period (change)

Increase from the end of the previous period (change)



Investment

Investment in in non-current assets 2011–2015, EUR million

120

Investment during the strategy period will be markedly higher than in previous years

• Average annual investment during

the strategy period is estimated at

EUR 9–13 million

• Focus of investment:

• Growth and renewal in Food

Solutions

• Higher added value in Oilseed

Products

• Growth in the Baltic countries in

Grain Trade

• Productivity and efficiency in

Seafood

EUR

million

0

2

4

6

8

10

12

14

2011 2012 2013 2014 2015 2016...2018



Balance sheet


To manage its liquidity,

the Group has:

• A commercial paper

programme of EUR 100

million

• The total of commercial

papers issued stood at

EUR 32 million at the

turn of the year

• EUR 45 million binding

long-term credit facilities

• All undrawn

75 %

61 %

70 % 70 %

61 %

0

10

20

30

40

50

60

70

80

-50

0

50

100

150

200

250

2011 2012 2013 2014 2015

Balance sheet total Equity Net debt Equity ratio-%

Balance sheet total, equity, net debt and equity ratio 2011–2015

A strong balance sheet for the new strategy period will enable the controlled increase of net debt to finance investments

An equity ratio of at least 40%

EUR

million

%

Net debt capacity will increase with growing EBITDA during the strategy period


The need for additional

debt for the strategy

period is estimated at

EUR 20–30 million,

considering investment,

the payment of

minimum dividends and

business growth

At the Group’s targeted

EBITDA level for 2018,

its net debt capacity will

increase to EUR 60–65

million

Net debt, need for additional debt (estimate) and net debt capacity, EUR million

EUR million

0

20

40

60

80

100

Net debt, 31 Dec 2015:

EUR 23 million

Need for additional debt:

EUR 20–30 million

Net debt capacity


Dividends

Good dividend history: the new dividend policy supports stable dividend payments

0,84 0,85 0,85

0,76

0,900,85

0,90

1,00

0,70 0,70

0,00

0,20

0,40

0,60

0,80

1,00

1,20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

125

Updated dividend

policy

The aim of the Board of

Directors of Apetit Plc is to

ensure that the company’s

shares provide

shareholders with a good

return on investment and

retain their value.

In line with its policy, the

company will distribute in

dividends at least 40% of

the profit for the financial

year but not less than

EUR 0.70 per share.

Dividend per share 2006–2015, EUR

*)

* Board of Directors’ proposal


The average dividend yield for the past ten years has been 5.3%

3,5

5,3

6,3

4,95,1

5,8

6,3

5,1 5,25,5

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

126

The dividend yield

has varied between

2.9% and 6.3%

since 2000

Effective dividend yield 2006–2015 (%)

In the calculation, the dividend is the actual dividend for each year, and the share price is the year-end share price.

*)


* In line with the Board’s proposal

Apetit towards 2018Juha Vanhainen, CEO



Trends support our chosen strategyEfficient processes and digitalisation create favourable conditions for competitivenessin all of our business operations

WELLBEING

We offer healthy food and ingredient

solutions with a high vegetable content

RESPONSIBILITY AND

TRACEABILITY

We produce responsibly and

traceably, from field to tableEASE

Our food and service solutions make

daily life run more smoothly for

consumers and professionals

ENJOYMENT FROM FOOD

Our tasty products make cooking

fun

Significanceof pricing

Digitalisation

Wellbeing

Ease

En

joym

en

t

from

foo

d

Resp

on

sib

ilit

y

an

d t

raceab

ilit

y


Existing business operations

New business operations

360 degrees of

vegetable-based

eating

is the direction for

our growth

The segments illustrate

our share of vegetable-based

eating in Finland

Total: 280 kg per capita per yearSource: Natural Resources Institute Finland

Growth can be organic or

through M&A

Growth is based on

creating added value

and developing new

product areas and

services.

No presence

SERVICES

Dig

ita

l S

olu

tio

ns

Fo

od

So

lutio

ns

FRUITS

GR

AIN

S

PROCESSING

RAW

MATERIAL

TRADE



Growth through higher value-added

products and an attractive brand

Increased agility, with a focus on the

production and commercial scale

Primary production in partnership networks

through closer cooperation

Leader of digitalisation in primary production

and the consumer interface

New opportunities and industrial symbioses

for the food chain from the bioeconomy

Investment in services and international

sales

All business operations must be

profitable over the long term

We are open to sector solutions that

are suitable for our strategy

Continuous improvement and

development of competitiveness

Implementation schedule for the most important measures for the strategy period

Expansion in fresh products

Renewal of frozen products

Enhancing production efficiency to enable growth Service and product development Enhancing exports

2016 2017 2018

Food Solutions

Expanding the grain trade in the Baltic countries

Partnerships

Grain productsAssesments

Grain Trade

Investment in efficiency

Efficiency measures Expanding customer relationships

Seafood

In-depth R&D operations

Further processing of oilseed productsAssesments (further processing)

Oilseed

Products



Aiming for profitability and growthApetit Group’s financial targets for 2018


Financial

target for

2018

Target for

organic growth

EBITDA

7.5% in 2018(2015: 3.7%)

ROCE

14.0 in 2018(2015: 12.1%)

Cash flow after

investments:

clearly positive for the

strategy period*

Food Solutions

An increase of

20% in net sales by the end 2018

Grain Trade

> 1 million

tonnes in annual

sales volumes in 2018 (2015: 0.83 Mt)

Oilseed Products

Share of packaged and

special products

of net sales: 34%in 2018 (2015: 28.4%)

Seafood

We will focus on

improving the cash

flow

GROUP

SEGMENTS

EBITDA

7.5% in 2018(2015: 5.5%)

• GROUP ROCE in 2018 > 10%• EBITDA in 2018: EUR 20 million or more (2015: EUR 8.5 million)

• An equity ratio of at least 40% (2015: 61.1%)


Apetit in 2018:A leader in vegetable-based food solutions

Eero Kinnunen,

CFO

[email protected]

Tel. +358 10 402 4025

Mikko Merisaari Apetit Plc

Manager, Communications and IR www.apetitgroup.fi

www.avena.fi

[email protected]

Tel. +358 10 402 4041


Investor Relations

apetit plc capital market day 2016 · 2018-11-23 · apetit plc | capital market day 1.3.2016 2...

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