Dag van de tips
Dirk Goeminne
October 8 2016
Agenda
October 8 2016 Dag van de Tips 2
Who are we?
What thrives us?
Processed meats headlines
Ready meals headlines
Consolidated figures
Why look at Ter Beke
Ter Beke Introduction
October 8 2016 Dag van de Tips 3
Concern
Markets its assortment in more than 10 European countries
2 core activities:
Processed meats
Fresh ready meals
7 industrial sites in Belgium and the Netherlands
Employs approximately 1,650 people
Generated a turnover of EUR 399 million in 2014.
Ter Beke (Euronext Brussel: TERB) Shareholder structure
Share price evolution
65,30%
1,80%
28,30%
4,80% Stichting
Coovan
M6
Free float
SRIW
50
70
90
110
130
150
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015 2016
FOCUS ON STRUCTURAL PROFITABILITY AND SHAREHOLDER VALUE
Ter Beke ambitiously preparing the future
October 8 2016 Dag van de Tips 4
CLEAR GROWTH STRATEGY IN PROCESSED MEATS
CLEAR GROWTH STRATEGY IN READY MEALS
“ When it comes to food, the primary consumer trends remain
taste, quality & indulgence
October 8 2016 Dag van de Tips 5
INNOVATION
Innovation must be the driving force of our strategy and our organization
New products, processes and services are an absolute prerequisite for growth
OPERATIONAL EXCELLENCE
We strive to excel in everything we do
We do the right things and we do them right
We do not compromise on quality
COST LEADERSHIP
We manage ourselves and our operations as efficiently as possible
We aim to reduce direct and indirect spend as much as possible
Strategic value & growth must be generated through:
October 8 2016 Dag van de Tips 6
CUSTOMER INTIMACY
Our customers are at the heart of our operations
Satisfied customers are our primary aim
These values inspire and shape our behavior
October 8 2016 Dag van de Tips 7
Corporate Social Responsability Plan 2015-2020
October 8 2016 Dag van de Tips 8
Customer satisfaction,
Top 20% customer satisfaction
Supply chain integrity,
100% GFSI certification of factories and suppliers
Animal welfare standards on meat and other animal products
100% in own branded products
Healthy living
Less energy, fat and saturated fat (20% below competitors average)
Increasing vegetable intake (50% more)
Environmental friendly production
No GMO’s – No irradiated ingredients
25% less energy & water use and waste water
Packaging materials
Maximize reuse, recyclable or produced from recycled materials
If not, Compost Home and Bio-based packaging material
Ter Beke fully committed towards all its stakeholders, e.g.
Our inspiration – Other relevant market & consumer trends
These trends will inspire and fuel all of our innovation efforts
October 8 2016 Dag van de Tips 9
More older consumers, smaller households
Health & Wellness
Fun & Convenience
CSR & Transparency
Digitalisation
Living better for less
Our Competitive Environment
Inspiring competitors, active in our markets but also in many other niches or adjacent categories
Our category competitors
Me2-competitors, fighting for the same contracts and having similar competence
Our head on competitors
Future competitors, active in new potentially interesting categories or highly specialized niche operators, adjacent to our categories
Our newborn competitors
October 8 2016 Dag van de Tips 10
Processed meatsheadlines
October 8 2016 Dag van de Tips 11
Strategy for processed meats
October 8 2016 Dag van de Tips 12
Offers a qualitative full range of products
Offers added value services to clients
Operates in Benelux, UK and Germany
Nr 1 in Belgium in processed meats
Nr 1 in Benelux on service slicing
Competitive advantage
Constant respect of agreed quality
Category concept development
Service slicing
Tailor and Boost
Processed Meats
October 8 2016 Dag van de Tips 13
230
240
250
260
270
280
290
300
2011 2012 2013 2014 2015
Sales Evolution (in Mio EUR)
producer and slicer of processed meats for the Benelux, the UK and Germany;
2 production plants in Belgium (Wommelgem and Waarschoot)
5 centres for the slicing and packaging of processed meats
3 in Belgium (Waarschoot, Wommelgem and Veurne)
2 in the Netherlands (Wijchen and Ridderkerk)
innovating in the pre-packed processed meats segment;
distribution brands and own brand names L’Ardennaise®, Pluma® and DaniëlCoopman®;
employs approximately 1050 staff.
Processed Meats Division
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
10
15
20
25
30
2011 2012 2013 2014 2015
REBITDA
REBITDA/Sales
REBITDA & REBITDA/Sales Evolution (in Mio EUR)
The European Chilled Processed Meats Market
October 8 2016 Dag van de Tips 14
151,7 69,6137,6
43,1
695,9
1.240,6
99,5
328,4
55,6
588,7Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
European Chilled processed meats market 2015
The European Chilled processed meats category is over 5.7 million tons and over 60 Bn Euro
The volume grows by 1% in Western Europe by 2020
Value is driven by growth from Eastern Europe, with 39% value growth, whilst Western is expected to grow 15% between 2015 and 2020.
Germany is the biggest processed meats market (36%) but shows a slight decline over the forecast period
Value driven growth really starts to take hold in Western Europe
Findings
159,9 72,9135,9
46,2
729,9
1.203,0
93,4
342,8
59,5
563,1Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
European processed meats market 2020
Some impressions on innovation within the Processed MeatsDivision
October 8 2016 Dag van de Tips 15
Multi Layer Packaging
Ready meals headlines
October 8 2016 Dag van de Tips 16
Strategy for ready meals
October 8 2016 Dag van de Tips 17
Offers a qualitative range of chilled lasagna andpasta meals
Operates in most Western European countriesEuropean nr.1 in fresh lasagna
Come a casa is a valuable brand in Belgium
Clear growth strategy50% Pasta Food Company (joint venture) in Poland operational since end 2013
33% of Stefano Toselli, French competitor on the European lasagna market
2018 : option on 100% of Pasta Food Company andStefano Toselli
Ready Meals
October 8 2016 Dag van de Tips 18
60
70
80
90
100
110
120
130
140
2011 2012 2013 2014 2015
Sales evolution (in Mio EUR)
produces fresh ready meals for the European market;
market leader in chilled lasagne in Europe;
7 highly automated production lines in 2 specialized production sites in Belgium
(Wanze and Marche-en-Famenne);
brand names Come a casa® and Vamos® in addition to distribution brands;
employs approximately 600 staff;
joint venture The Pasta Food Company established in Poland (2011);
33% minority interest in Stefano Toselli
Ready Meals Division
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
0
2
4
6
8
10
12
14
16
18
2011 2012 2013 2014 2015
REBITDA
REBITDA/Sales
REBITDA & REBITDA/Sales Evolution (in Mio EUR)
The European Chilled Ready Meals Market
October 8 2016 Dag van de Tips 19
3,7 10,1 25,2
4,0
100,9
30,8
43,0
32,010,0
290,1
Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
2015 Volume
The chilled ready meals segment is the fastest growing segment in the market, both in volume (+18% by 2018) and in value (+13% by 2018)
All countries are growing, but the United Kingdom takes a 53% share and continues to grow at a good rate. The growth in the UK over the next five years is higher than the individual 2015 markets of Poland, Austria, Denmark & Switzerland.
Austria, Switzerland and France are up and coming whilst Germany is forecast to see a slight decline.
Findings
4,0 12,1 26,5
4,6
105,7
30,9
45,6
30,713,0
310,4
Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
2020 Volume
The European Chilled Fresh Pasta Market
October 8 2016 Dag van de Tips 20
9,1 6,0
3,9
65,9
90,1
3,9
11,0
14,2
39,0Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
European Chilled fresh pasta market 2015
Chilled Fresh Pasta is a growing segment, but value creation needs to be monitored
Germany takes the pole position with a 37% market share. France and the United Kingdom are also key countries in this market.
Findings
11,46,5
4,0
76,5
99,7
4,5
12,3
15,4
43,7Poland
Austria
Belgium
Denmark
France
Germany
Netherlands
Spain
Switzerland
UK
European Chilled fresh pasta market 2020
Come a casa confirms as a brand in Belgium
October 8 2016 Dag van de Tips 21
Bron: Nielsen MAT P3 2016
Some impressions on innovation within the Ready Meals Division
October 8 2016 Dag van de Tips 22
Launch Come a casa® Delicious
Farfalle Pancetta Lasagne Royale Ravioli di Mare
Some impressions on innovation within the Ready Meals Division
October 8 2016 Dag van de Tips 23
Launch Tapas concept
Enterprises accounted for under the equity method
October 8 2016 Dag van de Tips 24
Pasta Food Company Stefano Toselli
• 50% Joint venture• Delayed roll out of commercial plan• EBITDA positive break even despite low
volumes
• 33% Participation• Result only on last 4 months
Consolidated Figures
October 8 2016 Dag van de Tips 25
Ter Beke Consolidated
October 8 2016 Dag van de Tips 26
350
360
370
380
390
400
410
420
430
2011 2012 2013 2014 2015
Sales Evolution (in Mio EUR)Difficult economic environment
Price pressure from retail/consumer
Raw material price increases 2011-2012
Food crisis lasagna 2013
Ter Beke structured for growth
Cost reduction program
Investment program
Strong balance sheetREBITDA & REBITDA/Sales evolution (in Mio EUR)
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
20
22
24
26
28
30
32
34
36
38
2011 2012 2013 2014 2015
REBITDA
REBITDA/Sales
Increasing sales accelerates profit evolution
October 8 2016 Dag van de Tips 27
Sales Evolution (in 000 Eur)
(R)EBIT evolution (in 000 Eur)
(R)EBITDA evolution (in 000 Eur)
EAT evolution (in 000 Eur)
180.000
185.000
190.000
195.000
200.000
205.000
210.000
2012 2013 2014 Rev 2015 2016Sales
10.000
12.000
14.000
16.000
18.000
20.000
22.000
2012 2013 2014 Rev 2015 2016REBITDA EBITDA
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
2012 2013 2014 Rev 2015 2016REBIT EBIT
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2012 2013 2014 Rev 2015 2016EAT excl PFC EAT
Ter Beke Consolidated
Evolution Net Financial Debt (in Mio Eur)
Strong operational cashflow leading torecurring annual free cashflow
Increase in dividend yield
Net debt decreases over time
Steady reinforcement of Equity / Total Asset ratio
Ready for Next Step
Strong financial evolution
0
5
10
15
20
25
30
35
40
45
50
20
30
40
50
60
70
80
2009 2010 2011 2012 2013 2014 2015
Gearing
EV/TA
Evolution Gearing & Equity(in Mio EUR) /Total asset ratio(in %)
October 8 2016 Dag van de Tips 28
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015
Why look at Ter Beke
October 8 2016 Dag van de Tips 29
Strong commercial position in various markets
Committed management
Steady dividend yield
Ambitiously preparing the future
Financially ready
Opole ready