Toupargel,
a 21st century company
Nyse EuronextFood & Beverage Conference
19th May 2011
Contents
● Toupargel Group
● Frozen Foods Business
● Fresh Foods and Groceries Business
● 2010 Financial Results
● 2011 Outlook
Toupargel Group
A unique business model :
sale & home delivery of quality food
Online sales
(telesales, internet)
Semi-automated preparation of orders in dedicated
platforms
Delivery within 72 hours
Customers prospection
History
1947
• Birth of Toupargel Surgelés
1982
• Roland Tchénio buys Toupargel Surgelés
1997
• IPO on the Second Marché
2002
• Roll-out of Place du Marché
2003
• Agrigel’s take over
2010-2013• Cap 2013
2010 Sales
€331.1 MnWorkforce : 3 351
2010 Sales (e)
€20.4 MnWorkforce : 123
Frozen Foods Fresh Foods & Groceries
100 % 100 %
2010 Sales
€351.5 MnWorforce 9
Legal organisationas of 31 December 2010
Shareholdingas of 11 March 2011
Roland Tchénio family Group
53.5 %
Maurice Tchénio Group 31.0 %
Others Board 0.1 %
Own shares 2.0 % Free Float 13.4 %
Frozen Foods business
Frozen foods and ice cream market
(1) Source : Kantar Worldpanel
Yearly sales of €5.9 Bn (1)
● 98 % of french households
● 4.8 % of food consumption (€122.7 Bn)
of 26.6 million French households
● Products in tune with the new lifestyles
Frozen foods and ice cream market
Convenience
and food safety
Products
range size
Supermarkets &
Hypermarkets
64%
Freezer centers
19%
Home delivery
17%
Source : KantarWorldpanel
Home delivery frozen foods market
● Market of over €1 Bn and 4 million households
Syndigel Panel 2008 2009 2010
Sales €721.1 Mn €709.5 Mn €703.9Mn
Change - 1.4% -1.6 % - 0.8%
Average basket €44.4 €43.9 €44.1
Change +0.2 % -1.2 % +0.6 %
Number of orders -1.6 % -0.4 % -1.4 %
Syndigel panel : 4 companies Toupargel, Thiriet, Argel, Picard
Toupargel and its competitors
2009 Sales Market share Characteristics
Toupargel €339 Mn 34 % Family-run company
Thiriet €230 Mn 23 % Family-run company
Maximo €164 Mn 16 % Family-run company
Argel (+ Artika) €84 Mn 8 % Subsidiary of Even Group
Picard €25 Mn 2 % Take over in 2010 (Lion Capital : €1,5 Bn)
Others €170 Mn 17 % Bofrost, Eismann, Croque Gel…
In France
In Europe2009 Sales Position Market presence Sales system
Bofrost €1,200 Mn No.1 12 countries (+ Russia) Storetrucks
Eismann €600 Mn No.2 10 countries (+ Brasil) Storetrucks and telesales
Toupargel €339 Mn No.3 France telesales, internet
Sales & home delivery of frozen foods
• An extensive, top-quality frozen food product offering
• 15 calls per year to traditional customers
• One product magazine issued 15 times/year
• New services
Management of incoming calls
An e-commerce website
A nationwide presence*
Telesales agencies
Delivery agencies
Logistic platforms
*except Inner Paris
Organisation
Prospection 6 prospection call-centers230 teleprospection operators250 door to door canvassers
Nearly 400,000 new accounts each year
Loyalty service 1 call-center (reactivation of customers and new customers)70 operators
Sale 34 telesales agencies850 telesales agentsSome1,3 million customers called 15 times per year60,000 customers called each day
1 e-commerce team1 call center for management of incoming calls
Order picking 4 logistic platforms220 order preparers70 drivers
Over 7 millions orders and 50 million products prepared each year
Delivery 114 delivery agencies1,095 drivers
154 km and 31 customers delivered each delivery round
HQ 200 employees
A specific focus
Delivery to 97 % of 35,320
communities with under
10,000 inhabitants (52 % of
households, excluding Paris)
Toupargel delivers to 8 % of
households in these communities
From 0 to 5%
From 5 to 7%
From 7 to 10%
From 10 to 12%
From 12 to 15%
>= 15%
17
Cap 2013
• Concept Magasin
• Multicanal
• Elargissement de l’offre produits
• Accroître la base clients par la
fidélisation
• Responsabilisation et motivation
des hommes/femmes
Strategy
An historical heritage
• A rural and senior customer profile 78 % of Toupargel’s customers : seniors and family with children,
living in rural or small towns = 58 % of French population
• A limited number of contacts with traditional
customers
• Several delivery agencies operating within an
identical geographical zone
• Restricted delivery time slot
18
Cap 2013
• Concept Magasin
• Multicanal
• Elargissement de l’offre produits
• Accroître la base clients par la
fidélisation
• Responsabilisation et motivation
des hommes/femmes
Strategy
Cap 2013 project
• Virtual freezer center
• Multi-channel offering
• Multi-product offering
Cap 2013 Strategy
« Virtual freezer center"
19
Telesales team open
24/7
Multi-channel
Delivery team open
6 days / 7
and from 7 a.m. to 8 p.m.
A telesales team and a delivery team dedicated to an
exclusive geographical zone
Virtual freezer center development
20
2009 All customers within a geographical zone delivered
by a single agency 100 %
2010 All customers of a delivery agency called by telesales
operators of a single telesales agency
2011 Delivery organisation
Call-planning organisation
"Virtual freezer center"
Actions in 2011 – 2013
● 170 virtual freezer centers
● Extension of delivery time slot
● Real-time delivery management
● Creation of new virtual freezer centers
Prospection in rural zones
Development of urban customers
New partnerships
Incubator of new customers
Driving mindshare (TV, Internet…)
21
Strategy : Cap 2013
"Multichannel offering"
● Different ways of ordering
Phone :
obe called by a telesale agent
ocall the customer service
Internet : toupargel.fr, placedumarché.fr
● Broaden the customer base
"Multichannel offering"
Actions in 2010
● Communication of our 3040 phone number
through various media (catalogues, TV advertising, vans)
Sales : €6.7 Mn (January to December 2010)
● Roll-out of toupargel.fr e-commerce website in March 2010
Sales : €2.4 Mn (March to December 2010)
39,000 orders
Average basket > €60
● Organise cross-channeling
23
New channels : 3 % of sales
Strategy : Cap 2013
"Multi-products offering"
● Toupargel customers can also order the Place
du Marché range
● Broaden the product range
● Target a "qualified" Frozen foods customer base
● Leverage the frozen-foods delivery network to extend
deliveries to previously no-covered areas
● Low competition in rural zones
" Multi-product offering "
Actions in 2010
Initially : transfert of Place du Marché delivery agents to Toupargel
● Test : pooled deliveries of frozen foods / fresh foods and groceries
● Test : sale of Place du Marché products by Toupargel (liquids…)
25
Marketing
Actions in 2010 – 2011
● TV campaign / mindshare analysis
● Specific marketing actions
● Range of products :
Development of products under Toupargel label
Roll-out of new ranges : health, organic, halal
Leveraging naturality
● New partnerships
● RFM segmentation process
26
27
20%
30%
40%
50%
60%
70%
80%
90%
100%
sep 07 oct 07 march 08 jun 08 nov 08 march 09 jun 09 nov 09 march 10 jun 10 nov 10
Global brand awarenessWhich brands in a list are known?
Competitor 1
Toupargel
Agrigel
Competitor 2
Competitor 3
Customer ranking
10% of customers31% of yearly sales
18% of customers31% of yearly sales
18% of customers18% of yearly sales
24% of customers14% of yearly sales
16% of customers4% of yearly sales
40% of customers18% of yearly sales
Number of customers Yearly sales
NB : customers with only 1 or 2 orders are not included(14% of customers and 2% of yearly sales)
"Frozen Food business" : key figures (12 months)
2009 2010 Change
Sales (in €Mn) 339 331 - 2.4 %
Number of customers 1 317 000 1 242 000 - 5.7 %
Of which new customers 418 000 370 000 -11.5 %
Number of orders delivered / year 7 270 000 7 017 000 - 3.5 %
Number of orders / customer / year 5.5 5.7 + 2.4 %
Average basket (in €) 46.7 47.2 + 1.2 %
Sales / customer / year (in €) 258 267 + 3.6 %
29
Sales : - 8 M€of which new customers created in 2010 : - 4 M€
and new customers created in 2009 : -4 M€
Fresh Foods and groceries
business
Home delivery fresh food and groceries,
a market of € 1.0 Bn
• Corner shops (Monoprix, Simply Market, Intermarché)
• Food home delivery specialists (Place du Marché, Maximo)
• Cybermarkets
2009 Sales 2009 EBIT Delivery zones
Auchan direct €77.4 Mn -€2.6 Mn Ile de France, Lyon, Toulouse, Lille, Marseille and
around.
Houra €80.0 Mn 0.0 Mn (e) 06, 13, 31, 33, 54, 57, 59, 60, 62, 67, 68, 69, 75, 77,
78, 83, 84, 91, 92, 93, 94, 95, 98.
Carrefour.fr €74.6 Mn -€9.9 Mn Ile de France, Lyon, Bordeaux, Evreux, Le Mans,
Nantes, Rennes, Rouen and around.
Télémarket €60.0 Mn (e) N/A Ile de France, Lille, Toulon, Marseille-Aix, Lyon,
Reims, Saint-Etienne, Orléans and around.
Home delivery of fresh food and groceries
• Delivery limited to North Eastern France
• A specific focus : communities with under
10,000 unhabitants
• A weekly call contact with customers
• An e-commerce website
• 4,500 product
Regional coverage
Prospection 1 prospection call center
35 teleprospection operators
Sale 1 telesales agency
35 telesale agents
Order picking 1 logistic platform
50 orders preparers
Delivery 17 delivery agencies (mixed)
8,000 communities
covered
1,500 orders delivered
each day
Actions in 2010
● e-commerce website development
Sales (9 months) : 0.7 M€ (3.2 % of total sales)
Average basket : €122
20,000 visitors each month
● Product range increased from 4,000 to 4,500
● Prospection of Toupargel customers (7,500 shared customers)
● Merger of Place du Marché/Toupargel delivery networks
● Place du Marché/Toupargel deliveries test-pooled with a delivery
agency
"Fresh Foods business" : key figures (12 months)
2009 2010 Change
Sales (in €Mn) 19 20 + 6.2 %
Number of customers 46 000 46 300 + 0.7 %
Of which new customers 28 150 28 750 + 2.1 %
Number of orders delivered / year 376 000 379 000 + 0.8 %
Number of orders / customer / year 8.2 8.2 + 0.1 %
Average basket (in €) 51.2 53.6 + 4.8 %
Sales / customer / year (in €) 418 439 + 4.9 %
35
Actions in 2011 – 2013
● Extension of delivery zone
Firstly for agencies near order-picking platform (Châlon sur Saône)
Then other agencies
36
2010 Financial Results(12 months)
37
Consolidated income statement
In €Mn 2009 2010
Sales 359.1 351.5
Gross profit 204.8 201.3
Operating income (1) 21.0 21.9
Operating margin 5.8 % 6.2 %
Net profit 12.9 12.9
Net profit margin 3.6 % 3.7 %
Cash Flow 24.6 21.2
Workforce 3 619 3 483
(1) It should be noted that the CVAE (business value-added contribution), (€2.3 Mn, or 0.6% of sales) is
posted under income tax.
38
Variation in operating costs
In €Mn 2009 2010
In M€ In % In M€ In %
Sales 359.1 100.0 % 351.5 100.0 %
Gross profit 204.8 57.0 % 201.3 57.3 %
Sales costs (53.0) (14.8 %) (51.7) (14.7 %)
Prospection costs (19.0) (5.3 %) (18.7) (5.3 %)
Delivery costs (66.3) (18.5 %) (64.1) (18.2 %)
Logistical costs (22.5) ( 6.3 %) (22.1) (6.3 %)
Common, non-recurring costs (23.0) (6.4 %) (22.8) (6.5 %)
Operating income 21.0 5.8 % 21.9 6.2 %
39
Consolidated balance sheet
In €Mn 31 Dec. 2009 31 Dec. 2010
Shareholders equity 77.9 80.7
Net debt 17.8 12.3
Gearing 23 % 15 %
WCR - 35.9 - 37.1
Capex 6.9 9.1
Free Cash Flow 16.1 17.6
40
Dividends per share
1.5 € 1.5 € 1.5 €
1.0 € 1.0 €
2005 2006 2007 2008 2009
Pay-out ratio 67 % 63 % 86 % 67 % 74 %
Dividend (in €Mn) 15,1 15,2 14,9 9,9 9,9
2010 Dividend
It has been decided to distribute on 30th June 2011 a dividend of one
Euro (1€) per share in accordance with the following terms:
● - 100% in cash,
Or
● - 50% in shares and 50% in cash, according to the shareholder's
choice.
42
2011 Outlook
2011 Outlook
● Frozen Foods Business
- Return to growth on Q4 2011
● Fresh Foods & Groceries Business
- Growth and increase of profitability
After cap 2013….
● Romain Tchénio, ESCP (2000), Head of Sales
of frozen foods business, will become CEO of
Toupargel Group