Dag van de tips · The European Chilled Processed Meats Market October 8 2016 Dag van de Tips 14...

Dag van de tips

Dirk Goeminne

October 8 2016

Agenda

October 8 2016 Dag van de Tips 2

Who are we?

What thrives us?

Processed meats headlines

Ready meals headlines

Consolidated figures

Why look at Ter Beke

Ter Beke Introduction


Concern

Markets its assortment in more than 10 European countries

2 core activities:

Processed meats

Fresh ready meals

7 industrial sites in Belgium and the Netherlands

Employs approximately 1,650 people

Generated a turnover of EUR 399 million in 2014.

Ter Beke (Euronext Brussel: TERB) Shareholder structure

Share price evolution

65,30%

1,80%

28,30%

4,80% Stichting

Coovan

M6

Free float

SRIW

50

70

90

110

130

150

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016

FOCUS ON STRUCTURAL PROFITABILITY AND SHAREHOLDER VALUE

Ter Beke ambitiously preparing the future


CLEAR GROWTH STRATEGY IN PROCESSED MEATS

CLEAR GROWTH STRATEGY IN READY MEALS

“ When it comes to food, the primary consumer trends remain

taste, quality & indulgence


INNOVATION

Innovation must be the driving force of our strategy and our organization

New products, processes and services are an absolute prerequisite for growth

OPERATIONAL EXCELLENCE

We strive to excel in everything we do

We do the right things and we do them right

We do not compromise on quality

COST LEADERSHIP

We manage ourselves and our operations as efficiently as possible

We aim to reduce direct and indirect spend as much as possible

Strategic value & growth must be generated through:


CUSTOMER INTIMACY

Our customers are at the heart of our operations

Satisfied customers are our primary aim

These values inspire and shape our behavior


Corporate Social Responsability Plan 2015-2020


Customer satisfaction,

Top 20% customer satisfaction

Supply chain integrity,

100% GFSI certification of factories and suppliers

Animal welfare standards on meat and other animal products

100% in own branded products

Healthy living

Less energy, fat and saturated fat (20% below competitors average)

Increasing vegetable intake (50% more)

Environmental friendly production

No GMO’s – No irradiated ingredients

25% less energy & water use and waste water

Packaging materials

Maximize reuse, recyclable or produced from recycled materials

If not, Compost Home and Bio-based packaging material

Ter Beke fully committed towards all its stakeholders, e.g.

Our inspiration – Other relevant market & consumer trends

These trends will inspire and fuel all of our innovation efforts


More older consumers, smaller households

Health & Wellness

Fun & Convenience

CSR & Transparency

Digitalisation

Living better for less

Our Competitive Environment

Inspiring competitors, active in our markets but also in many other niches or adjacent categories

Our category competitors

Me2-competitors, fighting for the same contracts and having similar competence

Our head on competitors

Future competitors, active in new potentially interesting categories or highly specialized niche operators, adjacent to our categories

Our newborn competitors


Processed meatsheadlines


Strategy for processed meats


Offers a qualitative full range of products

Offers added value services to clients

Operates in Benelux, UK and Germany

Nr 1 in Belgium in processed meats

Nr 1 in Benelux on service slicing

Competitive advantage

Constant respect of agreed quality

Category concept development

Service slicing

Tailor and Boost

Processed Meats


230

240

250

260

270

280

290

300

2011 2012 2013 2014 2015

Sales Evolution (in Mio EUR)

producer and slicer of processed meats for the Benelux, the UK and Germany;

2 production plants in Belgium (Wommelgem and Waarschoot)

5 centres for the slicing and packaging of processed meats

3 in Belgium (Waarschoot, Wommelgem and Veurne)

2 in the Netherlands (Wijchen and Ridderkerk)

innovating in the pre-packed processed meats segment;

distribution brands and own brand names L’Ardennaise®, Pluma® and DaniëlCoopman®;

employs approximately 1050 staff.

Processed Meats Division

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

10

15

20

25

30

2011 2012 2013 2014 2015

REBITDA

REBITDA/Sales

REBITDA & REBITDA/Sales Evolution (in Mio EUR)

The European Chilled Processed Meats Market


151,7 69,6137,6

43,1

695,9

1.240,6

99,5

328,4

55,6

588,7Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

European Chilled processed meats market 2015

The European Chilled processed meats category is over 5.7 million tons and over 60 Bn Euro

The volume grows by 1% in Western Europe by 2020

Value is driven by growth from Eastern Europe, with 39% value growth, whilst Western is expected to grow 15% between 2015 and 2020.

Germany is the biggest processed meats market (36%) but shows a slight decline over the forecast period

Value driven growth really starts to take hold in Western Europe

Findings

159,9 72,9135,9

46,2

729,9

1.203,0

93,4

342,8

59,5

563,1Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

European processed meats market 2020

Some impressions on innovation within the Processed MeatsDivision


Multi Layer Packaging

Ready meals headlines


Strategy for ready meals


Offers a qualitative range of chilled lasagna andpasta meals

Operates in most Western European countriesEuropean nr.1 in fresh lasagna

Come a casa is a valuable brand in Belgium

Clear growth strategy50% Pasta Food Company (joint venture) in Poland operational since end 2013

33% of Stefano Toselli, French competitor on the European lasagna market

2018 : option on 100% of Pasta Food Company andStefano Toselli

Ready Meals


60

70

80

90

100

110

120

130

140

2011 2012 2013 2014 2015

Sales evolution (in Mio EUR)

produces fresh ready meals for the European market;

market leader in chilled lasagne in Europe;

7 highly automated production lines in 2 specialized production sites in Belgium

(Wanze and Marche-en-Famenne);

brand names Come a casa® and Vamos® in addition to distribution brands;

employs approximately 600 staff;

joint venture The Pasta Food Company established in Poland (2011);

33% minority interest in Stefano Toselli

Ready Meals Division

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014 2015

REBITDA

REBITDA/Sales

REBITDA & REBITDA/Sales Evolution (in Mio EUR)

The European Chilled Ready Meals Market


3,7 10,1 25,2

4,0

100,9

30,8

43,0

32,010,0

290,1

Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

2015 Volume

The chilled ready meals segment is the fastest growing segment in the market, both in volume (+18% by 2018) and in value (+13% by 2018)

All countries are growing, but the United Kingdom takes a 53% share and continues to grow at a good rate. The growth in the UK over the next five years is higher than the individual 2015 markets of Poland, Austria, Denmark & Switzerland.

Austria, Switzerland and France are up and coming whilst Germany is forecast to see a slight decline.

Findings

4,0 12,1 26,5

4,6

105,7

30,9

45,6

30,713,0

310,4

Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

2020 Volume

The European Chilled Fresh Pasta Market


9,1 6,0

3,9

65,9

90,1

3,9

11,0

14,2

39,0Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

European Chilled fresh pasta market 2015

Chilled Fresh Pasta is a growing segment, but value creation needs to be monitored

Germany takes the pole position with a 37% market share. France and the United Kingdom are also key countries in this market.

Findings

11,46,5

4,0

76,5

99,7

4,5

12,3

15,4

43,7Poland

Austria

Belgium

Denmark

France

Germany

Netherlands

Spain

Switzerland

UK

European Chilled fresh pasta market 2020

Come a casa confirms as a brand in Belgium


Bron: Nielsen MAT P3 2016

Some impressions on innovation within the Ready Meals Division


Launch Come a casa® Delicious

Farfalle Pancetta Lasagne Royale Ravioli di Mare

Some impressions on innovation within the Ready Meals Division


Launch Tapas concept

Enterprises accounted for under the equity method


Pasta Food Company Stefano Toselli

• 50% Joint venture• Delayed roll out of commercial plan• EBITDA positive break even despite low

volumes

• 33% Participation• Result only on last 4 months

Consolidated Figures


Ter Beke Consolidated


350

360

370

380

390

400

410

420

430

2011 2012 2013 2014 2015

Sales Evolution (in Mio EUR)Difficult economic environment

Price pressure from retail/consumer

Raw material price increases 2011-2012

Food crisis lasagna 2013

Ter Beke structured for growth

Cost reduction program

Investment program

Strong balance sheetREBITDA & REBITDA/Sales evolution (in Mio EUR)

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

20

22

24

26

28

30

32

34

36

38

2011 2012 2013 2014 2015

REBITDA

REBITDA/Sales

Increasing sales accelerates profit evolution


Sales Evolution (in 000 Eur)

(R)EBIT evolution (in 000 Eur)

(R)EBITDA evolution (in 000 Eur)

EAT evolution (in 000 Eur)

180.000

185.000

190.000

195.000

200.000

205.000

210.000

2012 2013 2014 Rev 2015 2016Sales

10.000

12.000

14.000

16.000

18.000

20.000

22.000

2012 2013 2014 Rev 2015 2016REBITDA EBITDA

4.000

5.000

6.000

7.000

8.000

9.000

10.000

11.000

2012 2013 2014 Rev 2015 2016REBIT EBIT

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2012 2013 2014 Rev 2015 2016EAT excl PFC EAT

Ter Beke Consolidated

Evolution Net Financial Debt (in Mio Eur)

Strong operational cashflow leading torecurring annual free cashflow

Increase in dividend yield

Net debt decreases over time

Steady reinforcement of Equity / Total Asset ratio

Ready for Next Step

Strong financial evolution

0

5

10

15

20

25

30

35

40

45

50

20

30

40

50

60

70

80

2009 2010 2011 2012 2013 2014 2015

Gearing

EV/TA

Evolution Gearing & Equity(in Mio EUR) /Total asset ratio(in %)


0

10

20

30

40

50

60

70

2010 2011 2012 2013 2014 2015

Why look at Ter Beke


Strong commercial position in various markets

Committed management

Steady dividend yield

Ambitiously preparing the future

Financially ready

Opole ready

Dag van de tips · The European Chilled Processed Meats Market October 8 2016 Dag van de Tips 14...

Documents

Transcript of Dag van de tips · The European Chilled Processed Meats Market October 8 2016 Dag van de Tips 14...