International Strategy of AGRANA International Strategy of AGRANA CEO DI Johann Marihart, AGRANA...
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Transcript of International Strategy of AGRANA International Strategy of AGRANA CEO DI Johann Marihart, AGRANA...
International Strategy of AGRANA
CEO DI Johann Marihart, AGRANA Beteiligungs-AG
20.04.2012 | 2
Market position
SUGAR
STARCH
FRUIT
Leading sugar manufacturer in Central, Eastern and Southeastern Europe
Major manufacturer of custom starch products in Europe and largest producer of bioethanol in Austria and Hungary
World market leader in the production of fruit preparations
One of the largest producers of fruit juice concentrates in Europe (new JV with Ybbstaler)
20.04.2012 | 3
Beet sugar plant
Raw sugar refinery
Distribution Center
Austria
Czech Rep.
HungaryRomania
Slovakia
Bosnia-Herzegovina Bulgaria
Countries with plants
Other markets
7 sugar beet plants
2 raw sugar refineries
Countries with production sites
main marketsStarch plant
Bioethanol site
4 starch plants
2 Bioethanol facilities
27 Fruit preparation plants
11 Fruit juice concentrate plants
Potential growth regions
Countries with production sites
sugar starch fruit
Int. Production Meets Int. Customers53 production sites worldwide
20.04.2012 | 4
AGRANA products you meet everyday
SUGAR.
• Sugar is sold - to consumers via the food trade (20%) and - to manufacturers: e.g. soft drinks industry, confectionery industry, fermentation industry, other food and beverage industries (80%).
STARCH.
• AGRANA produces starch and special starch products.
• Starch is a complex carbohydrate which is insoluble in water. Starch is used in food processing e.g. as thickener and for technical purposes e.g. in the paper manufacturing process.
• Bioethanol is part of our starch business.
• Fruit juice concentrates customers are fruit juice and beverage bottlers and fillers.
• Fruit preparations are special customized products for- the dairy industry, - the baked products industry, - the ice-cream industry.
FRUIT.
AGRANA − At a glance
20.04.2012 | 5
560,1 691,4
424,6
587,5
639,7
673,4
Q1-3 2010|11 Q1-3 2011|12
AGRANA’s Revenue by Segment
1,624.4
1,952.2
+5.3 %
+38.4 %
+23.4 %
+20.2%
€mFruit
Starch
Sugar
34.5%
30.1%
35.4%
Q1-3 2011|12
39.4%
26.1%
34.5%
Q1-3 2010|11
20.04.2012 | 6
35.4
36.2
43.5
68.2
26.094.3
Q1-3 2010|11 Q1-3 2011|12
+89.6%€m
Fruit
Starch
Sugar
18.2%
34.3%
47.5%
Q1-3 2011|12
33.7%
41.5%
24.8%
Q1-3 2010|11198.7
104.8
Operating margin
4.6%
10.2%
5.5%
13.6%5.4%
11.6%
+2.3%
+56.8%
>+100%
* Operating Profit before exceptional items
AGRANA’s Operating Profit by Segment*
20.04.2012 | 7
AGRANA − Volume Split Inbound 9 Mio. tons raw material…
…Outbound 4 Mio. t finished products
Part of totalsugar 58 %
Part of totalstarch 27 %
Part of totalfruit 15 %
Products11 %
Raw Material16 %
Products14 %
Raw Material10 %
Products 5 %
Raw Material 44 %
20.04.2012 | 8
Which Volumes Have To Be Handled…
• AGRANA moves ~ 13 mio tons p.y. worldwide
o Would be ~ 520.000 trucks p.y. or > 1.400 trucks/day
o Transport costs of apx. € 150 mio p.y. ~ 8% or our total costs
o Wide range of transport types are used
- railways- vessels- trucks- multimodal solutions
20.04.2012 | 9
AGRANA´s Vision and Mission
• Vision and MissionAt AGRANA, we all share one vision - to be the world quality leaderin refining agricultural raw materials into sugar, starch and processed fruits. Our passion for quality and efficiency makes AGRANA the natural choice of food companies and for technical applications worldwide.
AGRANA – The natural upgrade.
• AGRANA is a multinational enterprise based in Austria. AGRANA’s Sugar segment and Starch segment operate in Europe. Its Fruit segment has global presence. In these markets, AGRANA’s goal is to be a leader in the industrial refining of agricultural raw materials.
20.04.2012 | 10
Status of Enterprises
Turnaround – crisis• Pace / Speed• Common Sense• Experience
(prejudice)• Clarity• Results• Low Risk• Liquidity
Growth – humble• Quality• Analysis• Creativity• Consensus• Methodical Approach• Opportunity• Profitability
Maturity – pride• Pedantry• Paralysis• Imagination runs wild• Coalition• Rituals• Game• Megalomania
Maturity
Turn-aroun
d
Growth
20.04.2012 | 11
20.04.2012 | 12
AGRANA´s History and Growth Strategy
• AGRANA is a local acting company in 1988
o 1988: AGRANA Holding is founded as a result of the consolidation of
Austria´s sugar and starch industries
• 1st Stage: Internationalisation „more of the same“
o 1990 – 2001: dynamic expansion into the sugar and starch markets of CEE
o 1991: IPO
• 2nd Stage: Growth by Diversification
o 2003: Diversification and start of the fruit business
o 2005: SPO
o 2006: Start of bioethanol activities. Sites in Pischelsdorf/NÖ and
Hungrana/H
o 2008: first JV for apple juice concentrate in Xianyang/ChinaActing proactive vs. Reacting!
20.04.2012 | 13
ZBG SüdzuckerRaiffeisen Bank Coop.
Lower Austria
Z & SZucker und Stärke
Holding AGFree Float
~ 50% ~ 50%
75.5%24.5%
~ 10.5%
~ 80%
AGRANA’s Shareholder Structure
• Shares outstanding: 14,202.040• Market capitalization (as of 10 April 2012): ~ 1,120.0 m€
20.04.2012 | 14
AGRANA´s Core Competences
• Sourcing agricultural raw materials
• Handle a global raw material flow and be specialized in big quantities
• Manage production processes in a lean way, but with highest quality standards, from commodities up to tailor made products
• Serve industrial customer markets with high customer satisfaction
• Develop innovative processes, methods and products
• Manage and administrate small and mid size operations worldwide
20.04.2012 | 15
AGRANA − Strategy = Synergy
Sugar
Central,
Eastern and
Southeastern
Europe
Starch
EuropeFruit
Global
Refining of agricultural raw materials
Investor and customer value from:• Balance of risk• Exchange of know-how• Cost savings through synergies
The strategic goals
SUGAR: Customer- and market-oriented growthin CEE and Southeastern Europe.
STARCH: Organic growth, and adding value by tailor-made products.
FRUIT:Customer- and market-oriented global growth.
SYNERGIES:Use synergies between business segments to position the Group optimally for the increasingly volatile operating environment in the segments.
CAPITAL MARKET:A long-term asset for shareholders.
20.04.2012 | 16
The beginning is always soil...
AGRANA refines agricultural raw materials... AGRANA is preferred
supplier for int. brands...
We all consume AGRANA products every day...
AGRANA − Strategic Position
Industrial pre-products„B2B“
20.04.2012 | 17
Key Strategic Choices
• Consolidation of the local business• Growth in the core business• Going public• Partnership (if you can‘t beat them, join them)• Diversification• Internationalisation
20.04.2012 | 18
AGRANA‘s Competency Wheel
Strategic Orientation
Market & Customer Orientation
Innovation &Change
Team-leadership & Cooperation
Commitment Achievement Orientation
Growth
Competitiveness
Change
Management CompetenciesCommon Values
Challenge
Profitize
Res
pons
ib
ility
Operate
conseq
uen
tly
20.04.2012 | 19
How effectiv is our Organisation?
Human Resources Manager
Marketing Manager
Logistic Manager
IT Manager
Security Manager
20.04.2012 | 20
More than Management
“Leaders do the right things, while managers do things right.”
Warren G. Bennis
20.04.2012 | 21
I was guided by Peter Drucker
• Investigate thoroughly (Due diligence)
• Don‘t pay too much (resist your will to succeed, don‘t pay silly prices, let your competitor do the nonsense)
• Integrate quickly (not hesitating in structuring …)
20.04.2012 | 22
The practice of International Management
Management-Tools used
• Cash pooling• Net financial debts report• P&L monthly• Forecasts every quarter• „Quick report“• Sales reports monthly• Production reports daily• Performance indicator
20.04.2012 | 23
• Task-and result-orientated approach
• Strategic orientation• Handling complex
relationships• Inspire others• Foster innovation and be
open for change
Leadership competencies in AGRANA
• Making complex decisions• Open minded attitude
towards people and change• Personal commitment• Goal-orientated work style• Evaluate employees• Market and customer
orientation
20.04.2012 | 24
People’s skills
• Professional competences as prerequisites
• Focus on Soft Skills:o Empathyo Orientation on the employeeo Personal developmento Team buildingo Positive and encouraging work atmosphereo Social responsibility
20.04.2012 | 25
AGRANA − Strategy
StarchSegment
FruitSegment
SugarSegment
• find and manage synergies• standardize best practice• R&D know-how transfer• evaluate potential acquisitions• provide services for divisions
• Energy/CO2-optimization• adopt organisational
structures to given frameworks
• refinement
• focus on speciality strategy• extend bioethanol capacities• entering wheat-starch
production
• organic growth• diversification of customer portfolio• Added Value -> system supplier
20.04.2012 | 26
“Don’t react – anticipate and act.”
20.04.2012 | 27
Challenges of our Business Areas
• Increase of volatility of agricultural raw materials (soft commodities) driven by weather impacts, growing demand and high speculation
• Customer consolidation process leads to higher pricing pressure• Regulatory changes (opening markets, WTO regulations, increasing
tightening of traceability and labeling etc.)• Increasing competition from global suppliers (from Brazil, China
etc.)• Increasing quality requirements from costumers (without willingness
to compensate the costs)
• A period of slowing global market growth ahead
20.04.2012 | 28
Conclusion
• AGRANA has become an international company
• Focus on our strengths -> more of the same, world wide
role out
• Lean cost structure
• Being the branch leader in quality and service
• Specialization where appropriate
• Providing solutions for our customers
20.04.2012 | 29
„Future challenges“
• The climate change
• The population growth and its nutrition
• Bioenergy
• Food safety (organic, GMO)
20.04.2012 | 30
Disclaimer
This presentation is being provided to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. This presentation comprises the written materials/slides for a presentation concerning AGRANA Beteiligungs-AG (“Company”) and its business.
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or investment decision.
This presentation includes forward-looking statements, i.e. statements that are not historical facts, including statements about the Company's beliefs and expectations and the Company's targets for future performance are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore investors should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events.
Although care has been taken to ensure that the facts stated in the presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been verified by the Company no representation or warranty, express or implied, is given by or on behalf of the Company any of its respective directors, or any other person as to the accuracy or completeness of the information or opinions contained in this presentation. Neither the Company nor any of its respective members, directors, officers or employees or any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.