1 ANIMEX Introduction 2010. 2 Corporate Animex; Smithfield Smithfield Animex 100% AgriPlus 100%
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Transcript of 1 ANIMEX Introduction 2010. 2 Corporate Animex; Smithfield Smithfield Animex 100% AgriPlus 100%
1
ANIMEX
Introduction2010
2
Corporate Animex; Smithfield
Smithfield
Animex
100%
AgriPlus
100%
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Smithfield Is the World’s Largest Pork Producer
Rabobank, 2010.
4
Smithfield Basics
* FY 2010: April 2009-March 2010
Key facts
Strategy: hogs + processed meat
Operations in the US, Europe, and
China
NYSE listed
Net sales FY 2010*: US$ 11bn,
#3 worldwide, #1 in pork
Net loss FY 2010: (US$ 101M)
Support to Animex
Large, exclusive breeder base
Knowledge transfer
Financial backup
Smithfield Locations
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Nestle
Danone
Animex Is Poland’s Largest Meat Producer
Net sales FY 2010*: 3,1 bn PLN
Net Sales[bn PLN]
* FY 2010: April 2009-March 2010
13 production plants 4x red meat
4x white meat
2x feed
1x chicken hatchery
2x feather
Employees: 7,700
Distribution in all channels
Exclusive access to largest Polish breeder base
(owned by Smithfield)
All required quality certificates
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Turnaround 1/2
-150
-100
-50
0
50
100
150
2001 - 2002 2003 - 2004 2005 - 2006 2007 - 2008 2009 - 2010
-3 000
-1 000
1 000
3 000
5 000
7 000
PBT Sales
.
.
.
.
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Turnaround 2/2
Independently managed production plants; operations and accountability on plant level; internal competition
Culture of survival and short-term sales maintainence
Customer is unimportant („they will come to us and buy anyway”)
Maintain current sales, no ambition to develop sales and earnings
„Costs are inevitable”, „money comes and goes”; investing in „fancy things”
„Everybody has to have a job”, qualifications didn’t really matter
Centralized sales, cooperation and knowledge transfer between the plants; consolidation of logistics and finance, management by objectives
Execution-oriented culture
Customer focus, among other employing professional customer satisfaction surveys
Increasing sales volume; balanced product mix
Cost control, cost benchmarking, focus on existing assets’ payback; financial discipline , control of liabilities and receivables
Building high performance team
„Socialist-style” management Today’s management
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Investment in human capital
INSEAD (France) – top management training Award „Investor in Human Capital” (received by only 10 companies
in Poland) Human resources development
Assessment Training Project development
Master Academy (100 participants) Foremen Academy (in progress – planned 340 participants) Meat & Poultry Brown Belt Training Program, Iowa State University
(17 managers participated)
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Business Ethics, Smithfield Code of Conduct
One of Smithfield’s most treasured assets is its reputation for integrity and fairness.
Smithfield wants to be responsive to the concerns of the communities in which it operates and exercise the highest degree of honesty and integrity in its dealings with others .
Therefore Smithfield has developed a Corporate Code of Conduct and Business Ethics, which is the basis of its and its subsidiaries operations.
Animex employees are trained on the Code’s content and application. There is an Annual Certification Process in place which requires each
employee on managerial position to certify they know the Code and are not aware of any breach of it by any employee.
There is an Employee Ethics Hotline – toll free and anonymous – for reporting non-compliance with the Code.
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Poland, our home market
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Poland vs. US StatesKey Parameters
Key facts about Poland:
• Area: 121.000 sq mi (like New Mexico, #69 worldwide);
• Population: 38.5M (like California, #31 worldwide),
38% living in rural areas;
• GDP: $567 bln (like Illinois; #23 worldwide);
• GDP per capita: $15.000 (#52 worldwide).
Galway, Ireland1.200 mi
„Non-EU Europe”27 states
„EU Europe”27 states
Lisbon, Portugal1.700 mi
Kiruna, Sweden1.100 mi
Yekaterinburg, Russia1.600 mi
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Poland: A Country Becomes Wealthier
43% 41% 39% 37% 34% 34% 31% 30% 28% 28% 28% 28% 28% 27%
7%7% 7% 6% 6% 6% 5% 5% 5% 5% 6% 6% 6%
17% 17% 17% 18% 18% 22%18% 20% 21% 20% 20% 21% 19% 20%
6%5% 5% 5% 5% 5% 6% 6%
4%5% 5% 5% 5% 5% 5% 5%
7% 7% 11%7%
8%8% 8% 8% 8% 8% 9% 9% 9%
9% 10% 7% 7% 12%13%
14% 13% 13% 14% 14%15% 15% 15%
10% 10% 11% 12% 12% 7%12% 14% 15% 15% 15% 11% 12% 12%
7%
4% 4% 5% 5% 6%6%
4% 4% 4% 4% 4%5%
10%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Other
Transport & communication
Education & leisure
Healthcare
Furnishing, householdequipment and routinemaintenance of the houseRent, electricity, heating etc.
Clothing & footwear
Food & drink (non-alcoholic)
Structure of Household Expenses [in per cent]
Average Gross Salary [monthly, in PLN]
GfK, 2010.
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Meat Is The Largest Polish Food Market
~30 bn PLNMeat and meat products
Alcohol
Soft drinks
Sweets
Culinary
Dairy
Nielsen, Animex.
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Our products and brands
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Categories, ProductsHot-Dog (trade & consumer form)
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Categories, ProductsDried-Smoked Sausage, Traditional Sausage (trade & consumer form)
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Categories, ProductsSmoked Products (trade & consumer form)
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Categories, ProductsSmoked Products (trade & consumer form)
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Categories, ProductsCanned Products (trade & consumer form)
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Categories, ProductsConvenience Food (trade & consumer form)
fresh & frozen
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Categories, ProductsFresh & Semi Meats (trade & consumer form)
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Exclusive Access To Largest Polish Hog Base
Contract Procurement
Smithfield Procurement
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Production, Procurement, Quality
RED MEAT
Slaughter: Cattle: 54 K heads Hog: 1,9 mln heads
Livestock procurement : Appr. 1.000 contract farmers
Quality systems Positive List System (Japanese) PSQ (implementation in
progress) Traceability
Complete traceability compliant with UE requirements
WHITE MEAT
Slaughter: Chicken: 37,4 mln heads Goose: 1,1 mln heads Turkey: 36,8 K tons
Livestock procurement : Contract farmers (92%) Own production of broiler birds
(80%) Own production of feed (44%)
Quality systems GHP GMP HACCP
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Leadership in Packed Deli Meats
Nielsen, 2010.
Broad and Diversified Portfolio
Red meat, white meat Pork, beef, veal, chicken, turkey, goose
Fresh meat, semi-processed, processed Fresh meat and poultry Marinates and other culinary meats Deli meats, cold cuts Canned meats Ready meals, convenience food
Packed meats for self-service, „unpacked” meats for deli counter
Leader in hypermarkets
Brands valued by both customers and consumers Strategic brands – Krakus, Morliny, Yano Regional brands (Poland only) Private label products
Strong marketing support
Animex Brands
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Animex Brand Portfolio Product, Price, Positioning
Brand Product Range Price Segment
Image / Positioning
Limited range: Dry sausages, deli hams, canned
meat, pate, smoked products; predominantly red meat
Semi-processed/ culinary meats
Premium Traditional, top quality, something special
Claim: „Deli meats as they used to be”
Extended range: Hot dogs, all types of deli; red and
increasingly white meat Semi-processed/ culinary meats Convenience food
Premium / Mainstream
Modern, innovative, convenient, for the demanding consumer
Claim: „Never enough fun”
Wide range: All types of deli, white meat only Convenience food Canned pate
Mainstream / Economy
Good value for money, always something for every consumer
Claim: „The best for everyday shopping”
Widest range: All types of deli, red and white meat Semi-processed/ culinary meats Convenience food Canned meat
Mainstream / Economy
No particular positioning
TV
TV
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Animex Brand Portfolio Consumer Perception and Brand Strength
81%
66%
61%
49%
47%
45%
92%Any Animex brand
Sokołów (umbrella)
Morliny
Krakus
Morlinki
Indykpol (umbrella)
Berlinki
Awareness: Four within Top 6 Brands
Nine of ten Polish consumers know at least one of Animex’ brands.
Four of six top recognized brands belong to Animex.
Sokołów is the best recognized single consumer brand.
Consumer research, 2010.
Krakus Morliny Sokołów Indykpol
Smoked, hams
Hot dogs - ++ -
Dry sausages ++ - - -
Kabanosy ++ - -
Formed - ++ ++
Pate - - ++
Trad. sausages - ++ -
Salami ++ -
Distinct Ownership of Quality
In consumers’ view, ... Krakus makes the best dry sausages and
kabanosy; Morliny make the best hot dogs; Producer #1 scores on sausages and
salami;
There is no brand that „owns” hams and smoked products.
Producer 1 Producer 2
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Leadership in Retail Chains (1/2)
Nielsen, 2010.
Category Ownership in Dry Sausage and Hot DogsTotal Packed Deli Meats Dry Sausages
Hot Dogs
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Leadership in Retail Chains (2/2)
Nielsen, 2010.
Packed Deli Meats Value Share Between 25% and 40%Total Chain 1
Chain 3 Chain 4
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Private Label DevelopmentAnnual Turnover With Poland’s Largest Retailer
+60%
+68%
+65%
+33%
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Export customers – long-term relations
USA – Krakus ham Lipari Jewel Wal-Mart
Japan – pork loin, bellies Seven Eleven
Japan – hot dogs IKEA
UK – processed meat, Morliny brand
Tesco UK Morrison’s ASDA Iceland
Germany – Yano canned products Aldi Rewe Edeka
Denmark – hot dogs, sausages, hams
Netto Coop SuperGros
Lithuania - hot dogs, sausages Maxima
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Animex export approvals
European Union – all plants
Other European countries Switzerland – Starachowice, Morliny, all white
meat plants Turkey – Dębica Norway - Morliny
Asia Japan – all red meat plants, Dębica, Opole, Iława South Korea – all red meat plants, Iława Vietnam – all plants Hong Kong – Szczecin, Starachowice, Ełk, all
white meat plants
Africa Ivory Coast – all red meat plants, Iława Ghana – all red meat plants Congo – all red meat plants, Iława
North America USA – Szczecin, Starachowice, Morliny Canada – Ełk, Morliny, Iława Mexico – Starachowice, Iława
Central & South America Cuba – Starachowice Guatemala - Iława Nicaragua - Iława Columbia - Iława
Australia & Oceania Australia - Iława New Zealand – Szczecin, Iława
We have export permissions for more than 70 important countries of the world.
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Thank you for your attention