Bank of Ireland Agri-Food Conference Kilkenny

21 November 2013

2

Agenda

1. Who We Are & What We Do

2. A Changing and Challenging Environment

3. Growth through Transformation and Innovation

4. Building on this Growth Platform

3

1. Who We Are & What We Do

4

The Birth of Valeo Foods

November 2010 Origin Foods and Batchelors

merger to form Valeo Foods

September 2011 Valeo Foods acquires

Jacob Fruitfield Group

5

• Now the largest ambient food supplier to Irish retailers

• 342 employees

• A predominantly branded business

• Two large Manufacturing Sites

• Ireland’s largest temperature controlled ambient

distribution facility

Valeo Foods

6

Integration – Establishing the Platform

Single IT

platform Significant

Systems upgrades

HQ & distribution

integrated

Best-in-class

commercial team

One integrated

Sales Force

Top 5 supplier to

Irish grocers

New structures &

streamlined

processes

7

Valeo is the No 1 ambient food supplier in

Ireland

v

Ra

nk

ed

on

Va

lue

sa

les

in

ea

ch

bra

ck

et

v

Under €75m €75m - €100m €100m - €150m €150m - €250m Over €250m

8

Valeo is A Brand Driven Business

No.1 flour

brand

No.1 juice

brand

No.1 pasta

brand

No.2 ketchup

brand

No.2 dry

sauce brand

No.1 dried

fruit brand

No.1

marmalade

brand

No.1 canned

brand

No.1 biscuit brand

No 1

or strong No 2

in all our key

categories

9

Augmented by Partner Brands

Complementary

to Valeo

category

positions

10

Supported By Strategic Relationships

with our Key Customers

Customer JBP Category Partners PL

Manufacture

✔ ✔ ✔

✔ ✔ ✔

✔ ✔ ✔

✔ ✔ ✔

11

Flexible & Efficient Manufacturing Operations

Delivering Competitive Advantage 2 Key sites: Cabra and Portarlington

12

2. A Changing and Challenging

Environment

13

Total Grocery market sales have grown over 52w by +1.1% to

almost €9bn, with recent 12w growth of +0.6%

Total Grocery - market value & YoY %chg

+0.4% +1.1%

(Source: Kantar Worldpanel )

14

Market dynamics

• Very competitive market in a challenging economic

environment

• Price sensitive consumers trading down

• Private Label growth

• Discounters growing footprint and share

• Multiples fighting for footfall and share

15

Strong presence of local and

international brands • Food market characterised by the strength of local brands

• Larger Irish groups hold strong positions in certain staple

categories

• Glanbia, Kerry

• Multinational groups also represented

• Nestle, Kraft, Unilever

16

Irish Grocery Market Context - Private Label

34.6%

35.5%

37.2%

34.0%

34.5%

35.0%

35.5%

36.0%

36.5%

37.0%

37.5%

38.0%

Private Label

Oct 11 Oct 12 Oct 13

(Source: Kantar Worldpanel )

Fresh and Ambient Food are growing within Grocery

+0.7%

-5.3%

+0.6%

-2.9%

+1.8%

-1.6%

+1.9%

(Source: Kantar Worldpanel )

Consumers’ coping strategies Example: Shoppers making more trips, but smaller trips

6% 31% 63%

20

07

4% 37% 58%

20

13

(Source: Kantar Worldpanel March 2013 )

Shoppers making 218 trips per year in

2007 vs 246 trips in 2013

Value Conscious Consumer

Retailers fighting for footfall and share

Suppliers / Brands

Market Dynamics

20

3. Growth through Transformation

and Innovation

21

Our Model - The Virtuous Circle

Generating

Operational

Efficiencies

Focus on

Core Brands

Driving

Category

Growth with

Customers

Renovating

& innovating

22

Focus on Core Brands - “The Magnificent 7”

23

Everything Is Based On Insight..

Telephone Research

Focus Groups

Assisted Shops

Digital Media

Workshops

Focus Groups

Consumer

Preference Tests

Focus Group

Screening

24

Odlums & Shamrock - Renovating to

Differentiate

September 13 September 13

25

Odlums & Shamrock - Innovating &

Stretching

26

Roma & Erin- Renovating to Differentiate

September 13

27

Erin, Roma & Batchelors - Innovating &

Stretching

November 13

September 13

28

Jacobs - Innovating & Stretching

August 13

October 13

September 13

Airing in October to

December 2013

Jacobs TV advert

29

Investing Behind Core Brands

Odlums exclusive

sponsor of the The Great

Irish Bake Off

Airing in October to

December 2013

30

Driving Category Growth with Customers

Example – Insight To Execution :

Tesco Home Baking Fixture

Category

strategy Customer

JBP

Customer

execution

Accelerating

category

growth

Consumer

insight

31

A €5M Brand Transformation Programme

Creating

44New Products

Renovating

220Packs

32

4. Building on this Growth

Platform

33

Growing our Brands

•Continued to drive from Growth Platform

• Invest in People and Processes

•Brand Investment

•Continued Renovation

•Win-win with Customers

•Pipeline of Innovation

34

Growing our Footprint

Double Our Turnover

M&A Criteria

• Ireland, UK, Continental Europe

• Category leading brands either #1 or #2

• Complementary products/categories

• Ease of integration

• Opportunities for cost/growth synergies

35

Key Messages

•Combined three iconic Irish food businesses to form

Ireland’s largest ambient food company

•Economic environment continues to be challenging

•Significant shifts in Consumer behaviour are here to

stay

•These challenges demand strategic focus

•Valeo focus on Brand growth through transformation

and innovation

•Build on this growth platform and broaden horizons