Download - Wessanen agm 16 april 2013 en final
Royal Wessanen nv
Annual General Meeting of Shareholders
Amsterdam, 16 April 2013
2012: Organic is our choice
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Portfolio approach focus on organic food
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2009 2012
€711m
Focus and investment into core brands & categories in organic in Europe
Grocery
HFS
IZICO
ABC
Others
€1585m
Focus on Organic makes sense !
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5-1-5-10% consistent growth per annum Spend per capita could more than doublein core countries
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Nutrition and food issues Transparency
Sustainability Weight and obesity
ORGANIC
Our vision is to build the most desired brandsin Europe in our focus area
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Healthy nutrition
Ethicalsustainable
Authentictaste
Functionalfood
Strategic objectives
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Sales growthSales growth
• Grow core brands
• Grow core categories
• Build strongholds in new markets
• Country specific growth strategies
• Launch fewer, bigger, better
innovations
• Execute acquisitions shortlist
Profitabilty
improvement
Profitabilty
improvement
• Central sourcing savings
• Pricing strategies towards
customers
• Improve operational excellence
with SAP
• Filling own factories
EnablersEnablers
• Improve talent performance
management / building
connected leadership
• Simplify how we are conducting
business
• Activate Organic Expertise Centre
(OEC), integrate Quality
Wessanen 2015Wessanen 2015
A more integrated
consumer and customer driven organisation,
being focussed, less complex, more efficient and integrated
A more integrated
consumer and customer driven organisation,
being focussed, less complex, more efficient and integrated
Transformation programme ‘Wessanen 2015’
1. Create more focus on our activities
• Reduction of approx. 300 FTE
• Expected one-off costs €(21) mln cash and €(7.0) mln non-cash impairment Deurne plant
• Expected savings €15 mln p.a. from 2014 onwards
• Reduction of approx. 300 FTE
• Expected one-off costs €(21) mln cash and €(7.0) mln non-cash impairment Deurne plant
• Expected savings €15 mln p.a. from 2014 onwards
3. Addressing low-yielding and non-performing activities
• Strongly reducing German grocery presence, changing go-to-market approach
• Focus in Italian grocery on non-dairy (soy)
2. Reduce complexity and simplify processes
• Cutting the tail / reducing number of SKUs at
− Dutch brands; French HFS brands; Export
• Centralising quality department
• In the Netherlands, focus on one franchise formula (Natuurwinkel), to end GooodyFooods formula
• Supply chain to manage our plants as of 2013 and to streamline processes
• Further increased focus on core brands and core categories
• Expansion number of CBTs (category brand teams)
• Split in branded and distribution organisation
− Benelux operations
− French HFS operations
Financial results 2012
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Key figures 2012
In € mln 2012 2011
Revenue 710.8 706.0
Autonomous growth (in %) 0.7%
Gross contribution 270.5 263.6
In % of revenue 38.1% 37.3%
Operating result (EBIT) (45.8) (19.0)
Net result (Wessanen equity holders) (53.2) (17.1)
Shareholders’ equity 101.6 163.2
Net result per share (in €) (0.70) (0.23)
Dividend per share (in €) 0.05 0.08
Shareholders’ equity per share (in €) 1.34 2.16
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2012 figures per segment
Revenue Normalised EBIT
2012 2011 2012 2011
Grocery 272.8 243.9 22.0 18.0
HFS (Health Food Stores) 204.8 247.5 - 5.0
IZICO 112.5 113.1 1.8 2.3
ABC 128.6 112.6 6.3 9.9
Non-allocated * (7.9) (11.1) (11.3) (11.5)
Wessanen 710.8 706.0 18.8 23.7
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* Eliminations before inter-segment revenue (Grocery and HFS)
EBIT - from reported to normalised
In € mln 2012 2011
EBIT (45.8) (19.0)
Impairments (46.8) (39.6)
EBIT bef. impairments 1.0 20.6
Exceptionals (17.8) (3.1)
Normalised EBIT 18.8 23.7
2012 Impairments Exceptionals
Grocery (15.8) (4.7)
HFS (23.9) (6.5)
IZICO (7.0) (6.2)
ABC (0.1) 0.1
Non-allocated - (0.5)
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Grocery: Goodwill impairment Kallo HFS: Goodwill impairments Allos, Tartex and HFS France IZICO: PP&E impairment Favory plant Deurne
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Net debt
Target financial policy: to maintain net debt structurally below 2.5x EBITDA
Financial overview 2012
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1
2
3
4
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2008 2009 2010 2011 20120
50
100
150
200
250
2008 2009 2010 2011 2012
1.7x
€54.9
In € mln
Management letter
• Framework of Internal Control (FIC):
– The roll-out and implementation of FIC has matured further
– Timely completion and quality of self assessments can be further improved
• Actions taken:
• More dynamic testing throughout the year by IAD
• Improve user friendliness of automated tool (GMRT)
• IT environment and automated controls:
– A number of Segregation Of Duty conflicts exist in the IT environment, partly due to size of the
operating companies
– Further remediation during 2013 are planned when economic viable, otherwise continued reliance
on compensating controls
• Internal controls at smaller Operating Units
– Adequate financial controls at smaller units remains attention point – not material at Wessanen
level
– Deloitte scope increased on request of CFO during 2012 and FIC reviews by IAD planned for 2013
Grocery
Focus on brand growth
+4.6%
Breakfast Cereals
DairyAlternative
Tea
Bread Biscuit
Replacer
Sweet inbetween
VeggieMeals&Spreads
Strong autonomous sales growth
Six out of
eight
core
categories
growing2011 2012
Strong growth driven by
• Brand support (TV/360°)
• In-store & consumer activation
• Innovation
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• First TV commercials since 2007
• A challenger to all conventional food brands
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• 11% growth in the UK
• Integration in UK on plan
• Roll-out Europe
- France: Q1
- Netherlands: Q2
- Germany: Q3
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Health Food Stores(HFS)
• HFS showing a disappointing performance in all three businesses
– Various issues addresses as part of ‘Wessanen 2015’
• France impacted by changing health food stores landscape
– Rise of chains at expense independent stores
– Lower sales, especially in wholesale and at fresh
• Benelux impacted by lost customers and weak performance at Fresh
– Existing Natuurwinkel and independent stores growing
• Germany impacted by weak brand performance Allos and declining revenues at Reformhaus channel (Tartex)
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New positioning and
Communication
New range from
March 2013
IZICO
• Full ownership acquired of Favory Convenience Food Group
– Paved the way for creation one integrated company
• New management team in place
• New name IZICO
– easy (IZI), go (CO), ice (IZ) and company (CO)
• Milestone plan being executed for full alignment and process integration Beckers Benelux and Favory
– Combining both headquarters in Breda
– Integration marketing, sales, operations, finance and HR
– Favory Deurne plant closed as of the end of March
American Beverage Corporation (ABC)
Daily’s defending its strong position via innovation,communication and brand activation
Little Hug •Extending its flavour range•Introducing drinks with 75% less sugar
Closing remarks
• 2012 was a turbulent year for the global economy and the Eurozone in particular
– Organic food markets continue to trend positively nevertheless
• We have made clear progress in numerous areas, however not all initiatives have resulted in the desired outcome
• We have initiated a comprehensive transformation programme to become more profitable
– More consumer & customer-led European integrated company
– More focused and agile, less complex and more efficient
• Wessanen has a great future ahead of it with authentic brand and strong market positions
• 2013 will be another challenging year: “Store is open while we are renovating and innovating”
• The seamless effort of our people to contribute to healthier and happier life for consumers makes Wessanen a unique company
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