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Emmi in the dessert paradise
Emmi Investor DayDavide BrebbiaManaging Director A-27
Berne, 3 November 2015
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 2
A-27 in brief
The market
The business
Going forward
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Dessert is one of the four Global Categories
The role of the dessert business within Emmi
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 3
Corporate Development
CEOCEO
Switzerland Europe(Austria, BeNeLux, Germany,
Italy, UK,)
Americas(Chile, Canada, France, Spain,
Tunisia, USA)
Global Trade Model
DrinksSpeciality cheeseSpoonableDesserts
Finance / Legal
Corporate Communications & IR
HRInternational Operations
Quality / Security / Environment
Global Categories & Marketing (incl. R&D coordination)
Global Initiatives
page 4
History
A-27 was founded in 1978 in Rancio Valcuvia in the province of Varese, northern Italy, as an ice-cream producer under the brand “Bontà Divina”.
In 1991 it specialised in the production and sale of traditional Italian and international chilled pâtisserie desserts.
In 2011 the company became even more international when it entered the Emmi Group.
In 2014 in addition to the production site in Rancio Valcuvia, the 2nd site in Gattico in the province of Novara was opened.
TODAY the company has a workforce of about 290 people; turnover has reached more than 80 million euros, and the desserts are sold in 24 countries.
Almost 30 years of experience in Italian specialty desserts
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Facts & figures Rachelli
The latest member in Emmi’s dessert family
§ Aquired in 2013§ Sales: approx. 30 million euros§ 120 employees§ Products: desserts and ice cream§ Solid growth history§ Strong competence in health-oriented food
(the entire ice cream range is organic orbiodynamic)
§ Leading position in Demeter organic ice creamin Germany
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Production sites
Rancio Valcuvia:- Niche products- Small volumes
Pero (Rachelli):- Specialty desserts- Organic ice cream
Almost 30 years of experience in Italian specialty desserts
Gattico:- Blockbusters
(high volumes) like Tiramisù
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Advantages of the new Gattico site
High-speed tiramisu and profiterole lines, double volume capacity
Production- Increased efficiency- Reduced complexity due to optimised set-up- Investment shift from replacement to
rationalisation and expansion
Quality- Perfect hygienical conditions- Capacity for innovation and new production lines
Sustainability- Optimised worker safety- Less waste (e.g. waste water treatment)
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Benefit of the acquisition
Mutual opportunities in various areas
For Emmi:§ Expansion of the product portfolio§ Strong position in a growing segment with
above-average margins§ Saving potential e.g. in purchase pooling
For A-27:§ Financial resources§ Know-how in operational excellence§ Access to marketing resources§ Access to new markets
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 9
A-27 in brief
The market
The business
Going forward
The different facets of the dessert category
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 10
1. Yoghurt
2. Patisserie
3. Mousse & cream
4. Flan & puddings
5. Specialties
European ranking of dessert sub-categories
Source: Global Base Study, LINK Institute
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We want to know the consumer
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 11
Dessert is an integral part of a meal.
I love to sharehome-made dessert with others.
I can’t live withoutdessert.
I prefer home-made and trusteddesserts.
I reward myselfwith a dessert.
Dessert Habitualist
Dessert Host
Dessert Enthusiast
Dessert Traditionalist
Dessert Rationalist
Five relevant dessert typologies
Source: Global Base Study, LINK Institute
«Indulgence & Premium» is one of the global food trends§ Global Food Trends
page 12
The global food trends
Source: Mintel
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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«Indulgence and Premium» is a global food trend
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 13
Source: Mintel
A closer look
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 14
A-27 in brief
The market
The business
Going forward
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Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 15
VISIONWe are the leading company for premium fresh desserts in Europe and satisfy our customers with excellent and innovative products based on our consumer and
production expertise and our passion for quality.
MISSION STATEMENTWe delight our consumers with better
tasting and innovative desserts. We satisfy our customers with successful and new solutions based on our thirty years of
experience, our focus on innovation and our enthusiasm.
Ambition
Positioning in the premium segment
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Development of the product portfolio
1991 Traditional chilleddesserts are launched underthe Bontá Divina brand
For a relaxing after dinner treat …
2000 Development of the " Selection " range
For the more refined palates!
2015 Expansion of the range (launch of eclairs and lemonprofiteroles)
Ideal as a snack or as a delicious dessert!
2008 Introduction of the " Delizia " range
Innovative and seductive desserts withswirls of enchanting flavours …
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
Positioning in the premium segment with more differentiation
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A-27 production growth in tons
900010500
1200013000
1450015400
16300
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2011 2012 2013 2014
Tons
Steady growth over a six-year period
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Sales by country
44%
19%
16% 7%5%
9% FranceUKItalyGermanyBelgiumOthers
The top 3 markets make up for approx. 80 % of total sales
(Total number of markets: 24, sales 2014)
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Sales breakdown by products
51%
17%
11%8% 3%
10%
TiramisùProfiterolesPanna CottaDelizia RangeLemon DessertOther
Tiramisù is THE big seller
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
(percentage of total sales)
page 20
Innovation pipeline
Never-ending possibilities
Cheese cakes?
New channels?
Crèmes? Flans?
Bisquit based?Bakery style?
Creative layers?
Mascapone dreams?
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
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Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 21
A-27 in brief
The market
The business
Going forward
Market outlook
Continuing high potential of dessert category
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 22
0
200
400
600
800
1'000
1'200
1'400
1'600
ITA ESP F GER UK
Market volumemillion euros
20172013
By 2017, prices are estimated to grow in the low to high single-digit range, depending on the individual market .
§ Dessert category will grow further§ Average consumer price per kg is
likely to follow a positive trend
Source: Canadean
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Mid-term growth potential of A-27
-
20
40
60
80
100
120
140
160
Actual 2014 2015 2016 2017 2018 2019 2020
Indexed sales
Expected growth above market average
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 24
Strategic objective:gain market share& generate momentum
Increase distribution on current desserts in retail in Europe
Range extension on desserts in retail in Europe
Gain distribution on Éclair sweet snack in retail in Europe
Range extension on sweet snacks in retail in Europe
Distribution of desserts in retail in Americas
Distribution of desserts in food service in Europe
Strategy
Time line
Perspectives on new market segments
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Summary
A-27 has a 37 years history of successful developments and innovations, and has still a lot of growth potential
Synergies with Emmi represent an additional opportunity for A-27
Next developments will be done always keeping great focus on quality and innovation
Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27
Questions & answers
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