Bezit is uit, delen is in

6 juli 2016

Nieuwe businessmodellen –flexibel en servicegericht

2

FAR – 90 analysts worldwide cover the entire F&A value chain

New York

Mexico City

Sao Paulo

Buenos AiresSydney

Santiago de Chile

Calgary

ChicagoFresno

Melbourne

Christchurch

St Louis

LondonUtrecht

Hong Kong

Singapore

Mumbai

Shanghai

Beijing

New Delhi

3

Food world moving (fast)

Business Model Generation; Alexander Osterwalder & Yves Pigneur, 2009

Netherlands: excellent international position in FPM

5

• Historically The Netherlands has had a strong focus on: (i) efficiency of the

food and agri chain (high population density), (ii) export of food and agri

products (international trade focused country), (iii) import of overseas

products (strategic position in Europe, former colonies) and (iv) specific food

and agri products like bulbs, flowers, potatoes, and dairy products

• This resulted in a international strong position both product and knowledge

wise:

– Highest yields in agriculture worldwide: #1 value added per hectare and

per fte; 4-5 times higher than European average

– Excellent export position in food and agri products: #2 worldwide exporter

(US #1); 80% of export to European countries

– Attractive business climate for international Food & Beverage companies:

30% of top 40 companies has R&D and/or (European) HQ in NL

14%

11%

2% 2% 1%

6%

3%2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Export R&D Sales Gross value added Employees

Historically the Dutch food and agri industry has always had an international strong position

Source: De bosatlas van het voedsel, 2014

Source: Topsector Agro & Food, De Nederlandse groeidiamant, 2011

Source: Rabobank calculation based on CBS (2012) and Topsectoren, Jaarbericht sectoren 2015

Excellent knowledge base: “Valleys and ports”The Netherlands has a relatively large food industry

Economic impact of F&A in The Netherlands (% of Dutch total)¹

Note 1: Dutch Ministry of Economic Affairs uses a broader definition of the Topsector Agri and Food: it adds also retail, distribution and wholesale linked to F&A to calculate F&A’s economical impact. As a consequence the impact almost triples when using this broader definitionNote 2: Agri products are the main export product (not being processed foods)

Coolport

Seed valley

Food valley

Noordwest

Zuidwest

Oosterschelde Venlo(fruit, vegetable)

N-H Noord(agribusiness)

Aalsmeer(floriculture)

Boskoop(trees)

Duin en bollenstreek(bulbs, flowers)

Westland-Oostland/Horti Campus(horticulture)

Dairy valley

Lauwersoog

Agri-bulk port

Urk

Cacaoport

Innexus

HANNN

Innofood Twente

Knowhouse

World PatatoCapital

ZaanstreekFirst in Food

Food Connection

Point

Brainport(Food tech)

FoodportZeeland

Health valley

Blueport

Valley (knowledge)

Business network

Greenport

Food processing

Primary sector

²

6

Dutch FPM industry plays an important international role with a market share in global export of 11% and global import of 12%

Source: UNCTAD, Rabobank

Largest importers, share in global import

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

US

Russia

Germ

any

Chin

a

UK

The N

eth

erlands

Spain

India

Italy

Largest exporters, share in global export

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Germ

any

Italy

The N

eth

erlands

US

Chin

a

Sw

itzerland

Fra

nce

Largest export countries for Dutch FPM

0%

2%

4%

6%

8%

10%

12%

Russia US Germany UK Belgium China France Turkey

• Global FPM market 2014E: USD 40bn

• Global FPM export 2013: USD 16bn

• Global export quote: 40%

• CAGR 2000-2013, only CAGR >10% presentedx%

31%

14%

15%

20%

12%

12%21%

11%

22%

7

Chinese competition is gaining ground rapidly

Source: UNCTAD, Rabobank

Largest importers, share in global import

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

US

Russia

Germ

any

Chin

a

UK

The N

eth

erlands

Spain

India

Italy

Largest exporters, share in global export

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Germ

any

Italy

The N

eth

erlands

US

Chin

a

Sw

itzerland

Fra

nce

Largest export countries for Dutch FPM

0%

2%

4%

6%

8%

10%

12%

Russia US Germany UK Belgium China France Turkey

• Global FPM market 2014E: USD 40bn

• Global FPM export 2013: USD 16bn

• Global export quote: 40%

• CAGR 2000-2013, only CAGR >10% presentedx%

31%

14%

15%

20%

12%

12%21%

11%

22%

Remaining competitive in rapidly changing market

9

Customer, competition, tech trends have most fundamental impact on the future of Dutch FPM companies

Source: Expert interviews, Rabobank

Long term Short term

Legislation

Finance

Exchange rates

Emergingmarkets

Retail chain dominance

Nanotech

3D Printing

Competition emerging markets

Capital market access

Mid-end battle field

Service demand

Changing consumptionpatterns

Volatile raw material prices

Supply base

ProfessionalisationConsolidation

Price competition

Robotics

Sensors Shortage technical staff

Level of impact

+++ +

Integrated solutions

Energy costdisadvantages

A. Customers

B. Competition

C. Technology

Smart Industry

EuropeanHSE

regulation

Food safety regulation in emerging

markets

Food safetyConsolidation

HSE issues

10

Pace of change, complexity and uncertainty are rising

Business Model Generation; Alexander Osterwalder & Yves Pigneur, 2009

Technology

advancing

Competition

rising

Clients acting

more

professional

Powerplay

food retailers

Health and

Transparency

Sustainability

11

Trends are pulling food manufacturers in all directions

12

Challenges = opportunities

III. Trends | Dutch FMP short and long term trends radar

HIGHER INVESTMENTS

HIGHER QUALITY

MORE SERVICE

SHORTER PAYBACK TIME

MORE POSSIBILITIESMORE FLEXIBILITY

HIGHER DEMANDS

13

Headache reduction: machinebuilder asked to share in the risks

Module

manufacturer

System integrator

Turn-key

Guaranteed

up-time

Pay-on-production

Service

Ris

k s

haring

14

The Über-solution – copying what is already there

How can we help you?

16

Common practice outside the food industry

17

Pay-on-production – financing example

18

If the core process is a step too far for food manufacturers

Conclusions

20

In a few bullets

1. Dutch food equipment manufacturers have a market

position to be proud of

2. There is no time for complacency though

3. Your clients are facing multiple challenges

4. And are offloading the risks to their suppliers

5. Financing alternatives are available for you to

accommodate your clients

Questions?

22

Contactgegevens

Rabobank Food & Agri Research

Croeselaan 18

3521 CB Utrecht

Rabobank

Sebastiaan Schreijen

Senior Analyst F&A Nederland

Telephone +31 (0)30 71 23831

Mobile +31 (0)6 1001 5468

E-mail Sebastiaan.Schreijen@rabobank.com

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