Västankvarn 6 th of July

Transcription

1 Landscape LM-Lantbruk Västankvarn 6 th of July Lantmännen, Mikael Jeppsson Head of Grain Dept.

2 Lantmännen s assignment is to contribute to the profitability on our owners farms, and optimizing the return on their capital in Lantmännen. 2 February 20, 2017 Group Presentation We Make Farming Thrive

3 Eng Wide Our base is in Northern Europe Lantmännen is an agricultural cooperative and Northern Europe s leading player in agriculture, machinery, bioenergy and food. We are owned by farmers, have employees, operations in some 20 countries, and an annual turnover of 37 billion SEK. Chairman of the Board: Per Lindahl CEO & Group President: Per Olof Nyman 3 February 20, 2017 Group Presentation We Make Farming Thrive

4 We are active in the entire value chain from field to fork Machinery Food Sourcing Plant breeding Inputs Farmers Grain Processing Customer & consumer Feed products Energy products 4 February 20, 2017 Group Presentation We Make Farming Thrive

5 Our Brand Promise: Together we take responsibility from field to fork 5 February 20, 2017 Group Presentation We Make Farming Thrive

6 Eng Wide Agriculture Sector Lantmännen s core business, develops and markets products and services for strong, competitive agriculture. Four main areas of operation: Feed Grain Seed Crop production Based in Sweden with an international business through ownership in HaGe Kiel, Scandagra Polska and Scandagra Group. Key Figures 2016 Net sales (MSEK) Operating profit (MSEK) Excluding items affecting comparability Operating margin (%) Excluding items affecting comparability Agriculture Sector 318 3,0 Lantbruk Sweden International operations International holdings KRAFFT 6 February 20, 2017 Group Presentation We Make Farming Thrive

7 Eng Wide International holdings Lantmännen has ownership interests in a number of international companies. The operations are mainly located in the Nordics, Germany, Poland and the Baltics. HaGe Kiel Lantmännen s share: 41 percent Scandagra Group Lantmännen s share: 50 percent Scandagra Polska Lantmännen s share: 50 percent Scandbio Lantmännen s share: 50 percent Viking Malt Lantmännen s share: 38 percent 7 February 20, 2017 Group Presentation We Make Farming Thrive

8 Eng Wide Machinery Sector Imports, markets and sells farm machinery, lubricants and chemical maintenance products in Northern Europe. The sector is comprised of: Lantmännen Maskin in Scandinavia Swecon in Sweden, the Baltics, and Germany Agro Oil in Scandinavia Key Figures 2016 Net sales (MSEK) Operating profit (MSEK) Excluding items affecting comparability Operating margin (%) Excluding items affecting comparability Machinery Sector 316 2,8 Lantmännen Maskin Swecon Agro Oil 8 February 20, 2017 Group Presentation We Make Farming Thrive

9 Eng Wide Energy Sector The Energy Sector is Sweden s largest bioenergy company and operates on a global market with a main focus on Europe. Operations comprised of business areas Lantmännen Agroetanol, Lantmännen Aspen and Lantmännen Reppe. The sector produces and markets: Sustainable fuel ethanol and protein feed Glucose syrup and starch products Alkylate petrol and potable spirits Gluten Key Figures 2016 Net sales (MSEK) Operating profit (MSEK) Excluding items affecting comparability Operating margin (%) Excluding items affecting comparability Energy Sector ,3 Lantmännen Agroetanol Lantmännen Reppe Lantmännen Aspen 9 February 20, 2017 Group Presentation We Make Farming Thrive

10 Eng Wide Food Sector Develops, processes and markets food products, including flour, breakfast foods, pasta, frozen and fresh bread and ready-to-eat meals Based in the Nordics with operations in more than 20 countries. The sector s business areas are: Lantmännen Cerealia Lantmännen Unibake Key Figures 2016 Net sales (MSEK) Operating profit (MSEK) Excluding items affecting comparability Operating margin (%) Excluding items affecting comparability Food Sector 849 6,0 Lantmännen Cerealia Lantmännen Unibake 10 February 20, 2017 Group Presentation We Make Farming Thrive

11 Eng Landscape LM-Lantbruk A brief introduction of the grain trade of Lantmännen. Total quantity 3,1 Mill tons traded. 2,5 Mill tons bought from farmers. 0,6 Mill tons sourced from traders. 47 collections sites during harvest, whereof 26 silo sites. 1,5 Mill ton storing capacity. Access to water connections, 14 ports whereof 4 deep sea ports, handysize and Panamax /05/2017

12 Eng Landscape LM-Lantbruk A brief introduction of the grain trade of LM. Supply to LMs industries 1,6 Mill tons, Feed production Milling industry Ethanol plant Starch industry 12 15/05/2017

13 Eng Landscape LM-Lantbruk A brief introduction of the grain trade of LM. External trade 1,5 Mill tons whereof 1,2 Mill tons for exports. Wheat, feed and milling Malting Barley Oats 13 15/05/2017

14 Landscape LM-Lantbruk Grain harverst in the Baltic rim (mill tons) Denmark 10,4 Sweden 5,6 Grain 65 Mton in addition Rape seed 9,8 Mton Pulses 1,7 Mton Finland 3,6 Baltics 9,0 Germany 46 50% Poland 27 50% oktober 2010 Presentationstitel

15 Landscape LM-Lantbruk Export of grain from Baltic Sea area In total 27 Mton 21 Mton wheat 5 Mton barley Main export origin Germany Baltics Poland Main destinations Northern Africa Middle East Rest of Africa Asia Intra EU oktober 2010 Presentationstitel

16 Landscape LM-Lantbruk The structure of the export A handful of big ports with panamax capacity creates market places and markets. Hamburg, Rostock Klaipeda, Riga, Paldiski Gdansk, Gdynia Destinations 3 rd countries and Mediterranean A number of smaller ports for coaster business kton Destination within EU Business is basis oriented oktober 2010 Presentationstitel

17 Landscape LM-Lantbruk To be successful in the Baltic Grain Market Close contacts with customers and access to their demand. Flexible execution. Be able to supply during difficult years Top class market intelligence, you need to know your market oktober 2010 Presentationstitel

18 Landscape LM-Lantbruk To be successful in the Baltic Grain Market Business with other traders in Baltic sea area origin. Trading and hedging skills. Shipping and execution skills Flexibilities, swapping Control of the position Attractive business models to farmers oktober 2010 Presentationstitel

19 Eng Landscape LM-Lantbruk How shall a famer to sell the grain? MATIF WHEAT 19 15/05/2017

20 Eng Landscape LM-Lantbruk How shall a famer to sell the grain? Spannmål i världen Källa USDA Jun-17 Konsumtionsökning i % Konsumtion i Mton Produktion i Mton 10,0% Volatile market. The weather is the main factor ,0% 8,0% ,0% 6,0% ,0% 4,0% ,0% ,0% 1,0% ,0% 20 15/05/2017

21 Eng Landscape LM-Lantbruk How shall a farmer sell the grain? The market is very volatile The weather gives the biggest impact Predicting the weather, is that even possible??? Protect the margin!! SALES strategy 21 15/05/2017

22 Landscape LM-Lantbruk Sales strategy. Decide how big risk you are prepared to take. Create a sales strategy, and follow it. EXAMPLES Sell according to the the costs Sell in portions Work long term, sell more long term when calculation fits. Spread your risks, work with different business models. Decide the lowest price you can accept Don t hunt price peaks Decide different price levels and act when they shows up. 22

23 Landscape LM-Lantbruk Sales strategy. 35% 20% 20% 25% 40% 25% 10% Upper level Price level 170 Prive level 160 Market price 150 Price level Price level 135 Lowest level 125

24 Landscape LM-Lantbruk Our grain contracts to farmers Forward contract, fixed price Spot contract, fixed price Poolprice contract Dayprice contract Deposit contract Financial trade Drying Contract Prepayment 24 21/02/2014

25 Landscape LM-Lantbruk Fixed priced contract Fixed prices based on the current market. Duration upto 18 months Updating 500 prices on a daily basis Fixed volyme, % supply obligation from farmers 25 21/02/2014

26 Landscape LM-Lantbruk Pool price and deposit contract Pool price contract, 50 % during harvest period Farmers commit quantity latest 31st March We sell on farmers behalf, best possible. Mainly on MATIF futures and options Normally obtaining prices in the upper price range Deposit contract Supply during harvest, pricing in farmers option before 31st of May. Cost 9,50 /mt Popular when low market prices Prevent increased storing capacity in farmers sites 26 21/02/2014

27 Landscape LM-Lantbruk Soft values contract and services. Drying contract Farmers commitment latest 1st of June Fixed cost for drying 9,50 /mt. Market information and price tools Website with market and price information. Put selling order or info info orders Your contract status Farmers position. LM2. An on line service for each farmer, grain position P/L benchmarked to the production cost. Daily updated. Launched in October /02/2014

28 Landscape LM-Lantbruk Our new offer, Financial trade OTC contracts to farmers on MATIF and CBoT. A direct connection to the international markets. Electronic trading platform. Hedging tool for the farmers. Capital request solved within the credit limts of the farmers A base for futures trading tools. Basis contracts Options 28 21/02/2014