WORLD LEADER in processed vegetables March 2011 2010/2011 1 ST Half-Year Results Projects Prospects 1
HISTORY From a regional French distillery in 1853...... to the world leader in processed vegetables Fresh Processed Frozen Yeast Sugar Canned foods Distillery Agriculture 1850 1900 1926 1955 1980 1995 2009 6 TH GENERATION OF BONDUELLE FAMILY INVOLVED IN AGRICULTURE PROCESSING 2
STRATEGY The obesity pandemic An obvious driver for vegetables consumption BONDUELLE: VEGETABLES, ALL THE VEGETABLES AND NOTHING BUT THE VEGETABLES STRATEGY Bonduelle: vegetables, all the vegetables and nothing but the vegetables Western Europe North America Eastern Europe Market (in billions of euros) 70 94 7.5 % of vegetables in a food consumption 6.3% 10.9% 5.2% per inhabitant 172 207 80 Source: Food for Thought 2010 (market 2009) VEGETABLES: A HUGE MARKET 3
STRATEGY Bonduelle: vegetables, all the vegetables and nothing but the vegetables 17% 18% 9% 7% 1985 15% 2009* 63% 17% Five-year outlook 58% 84% 5% 7% Raw vegetables Fresh processed * Market in Europe (West and East) + North America Source: Food for Thought 2010 (market 2009) and Bonduelle Canned VEGETABLES: A GROWING MARKET PARTICULARLY FOR PROCESSED VEGETABLES Frozen STRATEGY Bonduelle: vegetables, all the vegetables and nothing but the vegetables POLAND ITALY FRANCE USA Raw vegetables 89% 78% 61% 46% Frozen 4% 16% 16% 26% Canned 6% 2% 16% 23% Fresh cut and delicatessen salads 1% 4% 7% 5% 100% 100% 100% 100% Source: Food for Thought 2009 (market 2008) THE PERCENTAGE OF PROCESSED VEGETABLES INCREASES WITH ECONOMIC DEVELOPMENT 4
STRATEGY Bonduelle: vegetables, all the vegetables and nothing but the vegetables ALL VEGETABLES ALL TECHNOLOGIES ALL BRANDS ALL DISTRIBUTION CHANNELS AND ALL OVER THE WORLD BONDUELLE: A PURE PLAYER STRATEGY Bonduelle: vegetables, all the vegetables and nothing but the vegetables ALL VEGETABLES According to the definition given by consumers 50 basic vegetables processed into 2,500 product references BONDUELLE: A VEGETABLE SPECIALIST 5
STRATEGY Others Bonduelle: vegetables, all the vegetables and nothing but the vegetables PICARD Pizzas MC CAIN PICARD SODEBO Fish Green Giant MC IGLO CAIN BIRDS EYE IGLO HAK BIRDS FINDUS EYE Prepared meals D'AUCY FROSTA FINDUS MARTINET Vegetables D'AUCY DEL MONTE FRUDESA FLORETTE BONDUELLE Canned Frozen Fresh processed BONDUELLE: PRESENCE IN ALL TECHNOLOGIES STRATEGY Development / Technology = ƒ (freshness + convenience) Raw vegetables 74% of the market + 1% / year F r e s h n e s s Ready-to-Use Range + 10% / year Frozen + 5% / year Delicatessen + 20% / year Jars + 5% / year Convenience A PRODUCT PORTFOLIO THAT MATCHES ALL THE MARKET'S NEEDS Tins + 0% / year 6
STRATEGY All brands International, core market, multi-technology, multichannels Top of the range Canned France Frozen Spain Market basics Frozen Canada 4 STRONG BRANDS STRATEGY All brands Client brands 43% 51% Bonduelle Brands (Bonduelle, Cassegrain, Frudesa, Arctic Gardens) Breakdown of sales for 09/10 6% Others BUT ALSO THE DISTRIBUTOR BRANDS 7
STRATEGY All distribution channels Food Service 20% 73% Retail Industry 7% Breakdown of sales for 09/10 A STRONG PRESENCE IN THE SUPERMARKET AND FOOD SERVICE SECTORS STRATEGY In all countries Delicatessen Fresh processed Frozen Canned CONCENTRIC CIRCLES EMANATING FROM FRANCE 8
STRATEGY Growth based on two axes Canned / Frozen Fresh processed / Delicatessen Outside Europe Europe GROWTH DRIVERS: CANNED AND FROZEN OUTSIDE EUROPE FRESH CUT SALADS AND DELICATESSEN IN EUROPE STRATEGY Growth T/O 2 factories in France Spain Portugal Central Europe Eastern Europe Fresh processed History et strategy North America MUSHROOMS 1 560 M 42 factories in 11 countries CORN 150 M 75 80 85 90 95 00 05 09 10 BONDUELLE: WORLD LEADER IN VEGETABLES 9
STRATEGY Growth 1989: 511 M 2010: 1,560 M Frozen Fresh processed 23% 33% 66% Canned Frozen 27% Canned 50% France 50% Other EU 25% countries France 35% 25% Outside EU 25% Germany 40% Other EU countries A FAST CHANGING PICTURE STRATEGY Growth Outside of France Outside of France France France 1988: 3,500 permanent staff 2010: 7,437 permanent staff A MAJOR CULTURAL CHANGE 10
STRATEGY International No. 1 No. 2 No. 3 30% 22% 30% 50% Fresh cut Salads Delicatessen Salads Source: Food for Thought and Nielsen FRESH CUT SALADS AND DELICATESSEN: No. 1 IN EUROPE WITH 20% MARKET SHARE STRATEGY International No. 1 No. 2 No. 3 65% 11% 16% 7% 25% 4% 14% 25% Source: Food for Thought and Nielsen FROZEN FOODS: No. 2 IN EUROPE WITH 12% MARKET SHARE No. 1 IN CANADA WITH 65% MARKET SHARE No. 1 IN BRAZIL 11
STRATEGY International 70% 28% 40% 43% 21% 40% 37% 25% 38% 23% 26% 15% 16% No. 1 No. 2 No. 3 CANNED FOODS: No. 1 IN EUROPE WITH 30% MARKET SHARE No. 1 IN CANADA WITH 70% MARKET SHARE 12
GROWTH INTERNATIONAL PROFITABILITY LONG-TERM OVER SHORT-TERM PRIORITIES BRAND & INNOVATION SUSTAINABLE DEVELOPMENT POLICY Growth over 30 years T/O 2 factories in France Spain Portugal Central Europe Eastern Europe Fresh processed North America MUSHROOMS 1 560 M 42 factories in 11 pays CORN 150 M 75 80 85 90 95 00 05 09 10 + 10% PER YEAR ON AVERAGE 5% EXTERNAL, 5% ORGANIC 13
POLICY North America Sales and marketing departments Sales and marketing department «GELAGRI» Distribution centers Frozen Canned Canned (factories «GELAGRI») Fresh-cut Prepared Mushroom South America UNMATCHED INDUSTRIAL AND COMMERCIAL PRESENCE POLICY Profitability 1999 2009/10 Current operating income ( M) 32 105 X 3 AN AVERAGE INCREASE IN PROFITABILITY OF 12%/YEAR 14
POLICY Long-term over short-term priorities A close partnership with the agricultural world 3,500 growers and 100,000 hectares France 35,000 Canada 39,000 Spain - Portugal 2,300 Hungary - Poland 14,400 Italy - Germany 4,000 Russia 4,100 Belgium 1,200 Annual contracts with Producer Organisations A procurement charter: - Traceability - Security A PROCUREMENT POLICY SECURED AND SUSTAINABLE POLICY Long-term over short-term priorities R&D Investment Total budget: > 1% of annual sales More than one hundred engineers, nutritionists and chefs Industrial Investment Investments in 09/10: 91 M, 10/11: 75 M 40 % Efficiency 20 % Capacity SIGNIFICANT INVESTMENTS IN PRODUCTION FACILITIES AND INNOVATION PROCESS 15
POLICY Brand & innovation CASSEGRAIN: NEW SWEET & SAVOURY FLAVOURS AND DRIED VEGETABLES POLICY Brand & innovation BONDUELLE CANNED FOODS: EXTENSION OF THE VAPEUR (STEAM) RANGE 16
POLICY Brand & innovation BONDUELLE FOOD SERVICE: NUTRITIONAL COOKED STIR FRIES, SPINACH, CO-BRANDING AND «TRAITEUR DE PARIS» POLICY Brand & innovation BONDUELLE FROZEN: CREATING NEW OCCASIONS FOR PRODUCT CONSUMPTION (NATURAL, PREPARED, ) 17
POLICY Brand & innovation COMMUNICATION: STEAMED CAMPAIGN, 2009 POLICY Brand & innovation Unprompted Brand awareness Market share Position Russia 86 36.4% LEADER France Bonduelle France Cassegrain 54 21 12.5% (1) 11.1% LEADER (Bonduelle + Cassegrain) Germany 54 24.4% LEADER Spain Bonduelle 60 13.4% LEADER The Netherlands 64 18% LEADER Belgium 52 16% LEADER Italy 47 21.5% (1) LEADER Poland 63 28.5% LEADER Hungary 61 10% LEADER Sources: IRI/NIELSEN/IPSOS 2008 (1) Average multi-technology market share BONDUELLE: HIGH LEVELS OF BRAND AWARENESS THROUGHOUT EUROPE 18
POLICY Sustainable Development PEOPLE AGRICULTURE 5 priorities NATURAL RESOURCES NUTRITION / QUALITY TRANSPORT POLICY Sustainable Development Scope: Europe + Canada Energy consumption electricity + heat = 35.3 M Water consumption 2005 / 2006 2009 / 2010-18%* 2005 / 2006 2009 / 2010-29%* * unit consumption SIGNIFICANT REDUCTIONS IN ENERGY AND WATER CONSUMPTION 19
POLICY The Louis Bonduelle Foundation www.fondation-louisbonduelle.org Information and awarenessraising Actions in the field Supporting research THE LOUIS BONDUELLE FOUNDATION: HOW TO PROMOTE VEGETABLES CONSUMPTION? ORGANISATION Centralized departments EXTERNAL RELATIONS & SD FINANCE HR MKT and COMS R&D IT PURCHASING AUDIT 35.5% 100% 100% 100% 100% 100% 100% 100% FROZEN DISTRIBUTOR BRANDS CANNED FROZEN FRESH DEHYDRATED PASTEURIZED CANNED FOODS FROZEN FRESH DELICATESSEN CANNED FOODS RETAIL FROZEN RETAIL BRAND READY-TO- USE RANGE, RETAIL DELICATESSEN RANGE, RETAIL CANNED FOODS FROZEN CANNED FOODS FROZEN RETAIL & FOOD SERVICE 4 FACTORIES 6 FACTORIES 3 FACTORIES 13 FACTORIES 7 FACTORIES 2 FACTORIES 1 FACTORY 7 FACTORIES EUROPE OUTSIDE EUROPE 8 CUSTOMER-ORIENTED BUSINESS UNITS 20
ORGANISATION Main Main Shareholder Bonduelle Family Family 27.63% Other Other Bonduelle families 25.08% Floating 41.10% Employees + Treasury stock stock 6.19% 6.19% Bonduelle SCA SCA Manager: General partner represented by Christophe Bonduelle 99.99 % Bonduelle SAS SAS Christophe BONDUELLE Chairman Daniel VIELFAURE Chief Executive Officer Industrial and and commercial subsidiaries A PUBLIC FAMILY-RUN COMPANY 2010/2011 1 st Half-Year Results 21
2010 / 2011 2010/2011 1 st Half-Year Results Turnover A turnover in large increase HY 09/10 HY 10/10 Δ 760 884.6 16.4 % favorably impacted by the external growth Effect perimeter 10.5 % («France Champignon») the variations of exchange Effect exchange 4.3 % and carried by a solid organic growth Growth LFL basis + 1.6 % 2010 / 2011 2010/2011 1 st Half-Year Results Turnover: a solid total growth of 16.4 % Balanced between the areas Europe Outside Europe HY1 10/11 + 15.3 % + 19.2 % and boosted by the canned activity Canned Frozen Chilled + 25.6 % + 3.8 % + 11.2 % 22
2010 / 2011 2010/2011 1 st Half-Year Results Turnover LFL basis An internal growth supported by the Non Europe Area and which accelerates in Q2 Q1 Q2 HY1 Europe + 1.2 % -0.9 % + 0.2 % Outside Europe + 4.5 % + 5.5 % + 5.1 % Total + 2.1 % + 1.2 % + 1.6 % While Europe is impacted by the declines of the prices and the transfers to «GELAGRI» 2010 / 2011 2010/2011 1 st Half-Year Results Operational profitability A deterioration of profitability in Europe HY1 09/10 HY1 10/11 Sales Europe 551.3 Outside Europe 208.7 Total 760 Europe 635.8 Outside Europe 248.8 Total 884.6 Current Operating Profit 23.3 29.1 52.4 9.8 30 39.8 % 4.2 % 13.9 % 6.9 % 1.5 % 12.1 % 4.5 % the profitability outside Europe remaining solid. 23
2010 / 2011 2010/2011 1 st Half-Year Results Operational profitability Significant Non Recurrent Elements on HY1 HY1 09/10 HY1 10/11 Δ Sales 760.- 884.6 + 16.4 % Current Operating Profit 52.4 39.8-24.-% % 6.9 % 4.5 % - 240 bp Non Recurrent Elements (2.5) (4.8) Operating Profit 49.9 35.1-29.7 % % 6.6 % 4 % - 260 bp 2010 / 2011 2010/2011 1 st Half-Year Results Net Result Decrease in a Net Result in line with forecasts HY1 09/10 HY1 10/11 Turnover 760 884.6 + 16.4 % Operating Profit 49.9 35.1-29.7 % Financial Charges (12.1) (10.6) Net Result 25.2 15.5-38.5 % % 3.3 % 1.7 % - 160 bp 24
2010 / 2011 2010/2011 1 st Half-Year Results Financial Structure A solid financial structure, a gearing in improvement ASSETS LIABILITIES 31.12.08 31.12.09 31.12.10 31.12.08 31.12.09 31.12.10 Fixed assets Working capital 509 488 529 476 694 397 Shareholder s equity Net Financial Debt Gearing 360 637 177 % 407 598 146 % 477 614 129 % Thanks to the improvement of the Working capital (inventories) Despite the debt of acquisition «France Champignon» 2010 / 2011 2010/2011 1 st Half-Year Results Financial Structure A financial structure strengthened by the US private placement in August, 2010 (US 165 millions $) at competitive cost. 43 M 7 % 131 M 22 % 467 M 78 % 571 M 93 % 31.12.09 31.12.10 Average cost of the debt: 3.47 % Average cost of the debt: 3.77 % Debt Short Term Debt Long Term 25
Projects Projects ACQUISITION «FRANCE CHAMPIGNON» «France Champignon»: Key figures A strategy: mushrooms, nothing but the mushrooms 130,000 Tonnes Sales IFRS: 195 million 1 500 Employees 6 Factories + 1 distribution centers Acquisition April 2010 26
Projects ACQUISITION «FRANCE CHAMPIGNON» «France Champignon»: mushrooms, nothing but the mushrooms Networks: - GMS - RHD - B to B Technologies: - Canned - Frozen - Fresh - Pasteurized - Deshydrated Brands: ABRA ROYAL CHAMPIGNON LEON CLIENT BRANDS Projects ACQUISITION «FRANCE CHAMPIGNON» ENTERPRISE VALUE / «FRANCE CHAMPIGNON» Enterprise Value* 96 million ie 6 x EBITDA 2009 * Estimated 27
Projects ACQUISITION «FRANCE CHAMPIGNON» Satisfactory integration process - Expansion of the territory of the group & brand Transfer of the brand in October, 2010 - Add in Business (Consumer & clients) - Partial upstream integration of agriculture - Improvement in industrial process Mechanical cutting - Potential synergies at all levels of the P&L Commercial Industrial and logistic Administrative Projects INVESTMENT PROJECT IN BRAZIL Phase 1: Canned Peas-Corn Start of operations: September 2010 Plan over 5 years Capacity 50,000 T Investment 15 million Turnover 50 million Profitability in line with outside Europe businesses Return on capital employed > Group s average Targeted market share 10 % 28
Projects BRAZIL: STARTING OF OPERATIONS «CRISTALINA» September 2010 Projects 29
Projects Projects INVESTMENT PROJECT IN UKRAINE Phase 1: Canned Peas-Corn Start of operations: 2013 Capacity 50 000 T Investment 30 million Supply of Ukraine, Russia and former CIS markets 30
Projects UKRAINE: GEOGRAPHICAL SITUATION Prospects 31
2010 / 2011 Prospects 2010/2011 Prospects ( M) Turnover Current Operating Profit NRE Operating Profit NRE Forecast October 2010 1 700 73-79 3 70-75 «France Champignon» Updating February 2011 1 720 78-81 11 67-70 «France Champignon» «Westmeerbeek» «Sud-Ouest» Christophe CHATEAU Communication and Corporate Marketing Director email : cchateau@bonduelle.com Rue Nicolas Appert, B.P. 30173 59653 Villeneuve d Ascq Cedex, France Tél. : +33 (0)3 20 43 60 60 Fax : +33 (0)3 20 43 60 00 Grégory SANSON Chef Financial Officer email : gsanson@bonduelle.com Rue Nicolas Appert, B.P. 30173 59653 Villeneuve d Ascq Cedex, France Tél. : +33 (0)3 20 43 60 60 Fax : +33 (0)3 20 43 60 08 32