Financial Analysts Meeting. Viroflay, March 15, 2018

Transcription

1 Financial Analysts Meeting Viroflay, March 15, 2018

2 Dairy Environment

3 Dairy Environment Volatility Liberalization of the market has accentuated price and volume volatility Significant milk powder inventories burdened milk prices in the 1 st half of the year Unsatisfied butterfat demand drove up milk volumes and prices in the 2 nd half of the year 3

4 Dairy Environment Growth in world production + 842,000T (+1.9%) 4

5 Dairy Environment European milk collection European milk collection January-December 2017/2016: +2.1% 5

6 Dairy Environment Dairy markets in 2017 Milk s two components Protein Fat have experienced opposite pricing developments 6

7 Dairy Environment Skim milk powder Price evolution Average annual prices 7

8 Dairy Environment Skim milk powder International trade + 200,000 T (+7%) Skim milk powder Main world exporters 12 months 2017/2016 Volumes in tons European Union USA New Zealand 8

9 Dairy Environment Skim milk powder Inventories continue to constrain the markets Inventories (tons) Estimated European inventories of skim milk powder 450,000 T Factories Intervention Excess 9

10 Dairy Environment Butter Price evolution BUTTER Annual average 10

11 Dairy Environment Butter World trade - 125,000 T (- 12%) Butter + butteroil Main global exporters 12 months 2017/2016 Volumes in tons New Zealand European Union 11

12 Dairy Environment Situation in France Daily production in thousands of tons milk collection in France Milk production - France Production 2017/2016: +0.6 % janv. févr. mars avr. mai juin juil août sept. oct. nov. déc

13 Dairy Environment Situation in France 2016 / 2017 change in milk price (actual composition) ( / 1,000 l.) Total ( /1 000 L) T1 T2 T3 T % +11% +21% 13

14 Dairy Environment SITUATION IN FRANCE The limits of the French dairy model France s dairy industry is rendered fragile by the increased market volatility TWO CHALLENGES TO OVERCOME The relationship between the industry and retailers The adjustment of milk producers to the increased volatility 14

15 Dairy Environment Situation in France États Généraux de l Alimentation French Food Summit Define an inter-professional framework conducive to more transparent, reactive and equitable negotiations Create a common benchmark for milk and dairy products expressing French excellence Guarantee fair remuneration for farmers Respect environmental commitments Offer consumers dairy products in line with their expectations 15

16 Dairy Environment Sustainable milk production 16

17 Dairy Environment Situation in France États Généraux de l Alimentation French Food Summit 17

18 Other Dairy Products

19 Other dairy products Milkaut (Argentina) A more stable political context 19

20 Other dairy products AFP (USA) Reinforcement of our position in sauces and aseptic desserts 20

21 Other dairy products Armor Ingredients and nutritional solutions A difficult market for protein Development of our nutritional solutions 21

22 Other dairy products Butter and cream Strong increase in raw material prices only partially passed on in France 22

23 Other dairy products Food Service The partner of leading chefs and pastry chefs 23

24 Other dairy products Elvir 24

25 Other dairy products Elvir LOW FAT CREAM FROM CONDÉ-SUR-VIRE Whole semi-thick cream from Normandy Light fluid cream from Normandy Light semi-thick cream from Normandy 25

26 Cheese Products

27 Cheese The most dynamic market in dairy products 108 Europe FROMAGE CHEESE LAIT MILK YAOURT YOGURT France FROMAGE CHEESE LAIT MILK YAOURT YOGURT Trend in sales 27

28 Cheese: Why its success? AT ALL TIMES FOR ALL USES 28

29 Cheese: Why its success? HEALTHY NATURAL 29

30 Cheese: Why its success? LOCAL GLOBAL 30

31 Cheese: Why its success? SOCIAL DIGITAL 31

32 Leading the way to better cheese 32

33 Savencia France The market leader for growth % year-on-year sales variance Source: Nielsen

34 At all times, for all uses: cheese as a meal 34

35 Cheese as a meal: cheese nuggets 35

36 At all times, for all uses: cheese as a meal A perfect nutritional balance Caprice des Dieux pasta salad Parma ham snack Fruit salad 34 % of TEI (lipids, carbs, proteins) 30 % of protein RDI 32 % of calcium RDI 100 % of fiber RDI Rich in vitamins and minerals 36

37 At all times, for all uses: snacking 37

38 At all times, for all uses: glocal snacking 38

39 At all times, for all uses: snacking 39

40 40

41 Natural 41

42 Natural: Organic Savencia and Terra Lacta have committed to: Sustainable and responsible food by offering consumers a range of organic dairy products Equitable pricing for the organic milk purchased from Terra Lacta producers 42

43 Healthy: Nudge for Good European award 43

44 Local 44

45 Social and Digital: Alibaba and Chinese children 45

46 Social and Digital: raclette conviviality 46

47 47

48 Social and Digital: Fol Epi finesse 48

49

50 Global: international development 50

51 Russia: Belebey 52

52 Africa and Middle East: Tunisia 53

53 South America: snacking BRAZIL 54

54 South America: snacking ARGENTINA 55

55 North America: artisanal cheese 56

56 Conclusion A healthy global growth for our brands A healthy development of our innovative brands for all times and all uses, supported by creative digital communication Strong international growth 57

57 2017 annual results

58 Key figures ( million) Net sales +9.3% Current Operating Profit +57% 4.2% 3.4% 3.6% 5,0% 4,0% 3,0% 2,0% ROC Current operating margin Group share of net income 1,0% 0,0% 3,0% +63% 2,5% 600 Net debt 100 2,4% 1,9% 2,0% 1,5% 400 1,3% 1,0% ,5% 0,0% Résultat Group share net part of net du income Groupe Net Taux margin de marge rate nette 59

59 2017 net sales ( million) % -0.9% % 4,418 4, net sales Forex Growth 2017 net sales 60

60 Quarterly organic growth Group total 10.6% 12.1% 11.4% 10.8% 10.6% 13.4% 10.3% 9.2% T1 T2 T3 T4 Trimestrielle Quarterly Cumulée Cumulative Global growth fueled by: The price impact of the butter crisis, and Faster development of our non-french markets 61

61 Quarterly organic growth Cheese Products 5.7% 6.9% 6.5% 6.0% 5.7% 8.1% 5.6% 4.8% T1 T2 T3 T4 Trimestrielle Quarterly Cumulée Cumulative Growth in strategic brands under the impulse of: a 3.7% price impact and a 2.3% volume-mix impact 62

62 Quarterly organic growth Other Dairy Products 17.8% 17.8% 19.0% 18.4% 20.0% 17.3% 17.0% 13.4% T1 T2 T3 T4 Trimestrielle Quarterly Cumulée Cumulative Growth fed by: a strong 14.8% price impact and a 2.2% volume-mix impact 63

63 Net sales % + 291m 46.0% % + 149m 56.9% % -2.9% Cheese Products Other Dairy Products Not allocated 64

64 Net sales Geographical breakdown 40.1% 39.7% 39.9% 30.5% 29.7% 29.0% 29.4% 30.6% 31.1% France Reste of Europe Autres Rest of Pays world (-) Difficulty in passing on the milk equation in France (+) Stronger international organic growth (-) Forex impact 65

65 Average price trend for currencies % CHF -2.0% HUF 0.7% BRL 6.4% CZK 2.6% USD -2.1% CLP 2.1% UYU 2.9% CNY -3.8% GBP -7.0% PLN 2.4% ARS -14.7% UAH -6.2% EGP -81.7% Overall a - 43m weakening of other currencies against the euro 66

66 Operating costs ( million) (-) = fall Favorable Unfavorable Purchases Resale of surplus Total variance + 435m 62.6% 65.9% purchases % Payroll Inflation Total variance + 21m +2.4 % 19.0% 17.7% Depreciation, impairment, provisions Provisions Capex Dairy raw material prices Consumables & packaging Structural reinforcement Growth in activity Total variance - 0,5m -0.4 % 2.8% 2.6% Other operating income & expense Professional fees Advertising Total variance - 6m -1.3 % 11.4% 10.2% Repairs & maintenance Taxes 67

67 Change in current operating profit ( million) 2016: : Cheese Products Other Dairy Products Not allocated 68

68 Current Operating Profit Geographical evolution % evolution Current Operating Profit 2017 vs % France -19% Europe +14% International 0% 69

69 Current operating margin 7,0% 6,0% 5.3% 6.0% 5.3% 5,0% 4,0% 3.4% 4.2% 3.6% 3,0% 2,0% 1.7% 2.4% 2.0% 1,0% 0,0% Total Savencia SA Cheese Products Other Dairy Products 70

70 Average headcount Cheese Products Other Dairy Products Not allocated France Europe Other countries 71

71 Other operating income & expense million Reorganization Impairment of assets Disputes, accidents etc

72 Net financial expense m Change Interest (except interest rate hedging) Interest rate hedging Commissions Forex Other items Total IFRS latencies

73 Taxes on income Tax charge ( million) Effective rate 29.9% 32.3% 74

74 Income statement million Actual Δ 2017 / % net sales Actual % net sales Actual % Actual Net sales N/N % -0.5% -3.6% Current operating profit N/N-1-8% +23% +38% Non-recurring items N/N % -40% +170% Operating profit N/N-1-15% +53% +21% Net financial expense N/N-1-43% +6% -13% Profit before tax N/N-1-11% +58% +42% Taxes on income Effective rate -3% +22% +52% Group share of net income Evolution N/N-1-11% +83% +44% 75 % net sales

75 2017 cash flows ( million) Cash flow Industrial investment -151 Net acquisitions Dividends etc. Net debt up by 192 million

76 Balance sheet ( million) : 3, : 3, PP&E Working capital Equity Debt Financial assets Other liabilities 77

77 Stock price in SAVENCIA CAC all tradable ENFAM 60 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17 10/17 11/17 12/17 SAVENCIA stock Low High Average Change in % Capitalization as of 12/31/2017 1,132m 78

78 Financial Analysts Meeting Viroflay, March 15, 2018