Roadshow presentation - Cloetta · PDF fileRoadshow presentation ... Unilever Nordic and VP...

Click here to load reader

  • date post

    08-Aug-2018
  • Category

    Documents

  • view

    214
  • download

    0

Embed Size (px)

Transcript of Roadshow presentation - Cloetta · PDF fileRoadshow presentation ... Unilever Nordic and VP...

  • Roadshow presentation

    November 2013

  • 2

    Cloetta attendees

    Joined LEAF as CEO in 2009

    Previously held various senior management positions within

    FMCG sector, including CEO of

    V&S

    B.Sc. and MBA, University of California at Berkeley

    Bengt Baron President and CEO

    Joined LEAF as CFO in 2010

    Previously held various senior management positions within

    Unilever, including CFO/COO

    Unilever Nordic and VP Finance

    Supply Chain North America

    B.Sc. in Business Administration and Economics, University of

    Uppsala

    Danko Maras CFO

    Joined LEAF as SVP Corporate Communications in 2010

    Previously held various senior management positions, including

    VP Corporate Communications

    in TeliaSonera, V&S and

    Electrolux

    B.A. in Political Science and Economics, University of Lund

    Jacob Broberg SVP Corporate

    Communications &

    Investor relations

  • 3

    The merger of Cloetta and LEAF was highly complementary in combination creating a Nordic leader with full range of confectionery products

    Cloettas strength in the chocolate segment

    LEAFs leading operations within the sugar confectionery segments

    The integration process is completed

    The restructuring program proceeds according to plan

    New Cloetta has a strong portfolio of iconic, local and long-established brands and has grown to become significantly larger (5x) than old Cloetta

    Leading position and strong route to market in all Nordic countries, The Netherlands and Italy

    New financing structure in place

    Renegotiated bank facilities in August 2013

    Five year SEK 1,000m bond issue in September 2013

    Solid platform to capitalise on growth opportunities ahead

    Acquisitions are a part of the Companys growth strategy

    The new Cloetta was formed in 2012

  • 4

    Cloetta the leading Nordic confectionery player

    Leading market positions in key markets and complete product offering

    A portfolio of iconic local brands top 10 brands account for about 60% of net sales

    Sales in 50 countries 80% of total sales generated from markets with own sales force

    Approx. 2,600 employees in 12 countries

    Production at 10 factories in 5 countries 97,000 tonnes produced in 2012

    Complete offering

    CANDY & LIQUORICE

    CHEWING GUM PASTILLES

    CHOCOLATE

    Net Sales split 2012 Sales and underlying EBIT margin1)

    Finland 18% Denmark 4% Netherlands 13%

    Sweden 32% Norway 6% Italy 15% Others 12%

    1) Underlying EBIT based on constant exchange rates and the current company structure (excluding distribution business in Belgium and third-party distribution agreement in Italy) and excluding items affecting comparability

    By region By product area

    Sugar confectionery

    49%

    Chocolate 18%

    Pastilles 17%

    Chewing gum 8%

    Others 8%

    4 859

    3 455

    3 452

    9%

    6%

    10%

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    0

    1 000

    2 000

    3 000

    4 000

    5 000

    6 000

    7 000

    2012 JanSep 2012 Jan-Sep 2013

    Underlyin

    g E

    BIT

    marg

    in

    Net

    Sale

    s (

    SE

    Km

    )

    Net sales Underlying EBIT margin

  • 5

    Iconic brands

    1836

    1878

    1909

    1913

    1927

    1928

    1934

    1937

    1938

    1941

    1949

    1951

    1953

    1960

    1965

    1970

    1976

    1979

    1981

  • Population (million): 9.4

    Market size (EUR million): 1,400

    Market position: #2

    Top-selling brands:

    Malaco, Kexchoklad, Lkerol,

    Ahlgrens bilar, Polly, Center,

    Juleskum, Plopp, Sportlunch

    Sw

    ed

    en

    1)

    Population (million): 4.9

    Market size (EUR million): 900

    Market position: #1

    Top-selling brands:

    Malaco, Lkerol, Pops,

    Ahlgrens bilar

    No

    rwa

    y2)

    Population (million): 5.5

    Market size (EUR million): 1,000

    Market position : #3

    Top-selling brands:

    Malaco, Lakrisal, Lkerol,

    Center, Juleskum

    Den

    ma

    rk2)

    Population (million): 5.4

    Market size (EUR million): 900

    Market position: #2

    Top-selling brands:

    Malaco, Jenkki, Mynthon,

    Lkerol, Sisu, Tupla

    Fin

    lan

    d1)

    Population (million): 16.6

    Market size (EUR million) : 1,500

    Market position: #1

    Top-selling brands:

    Sportlife, XyliFresh, King,

    Red Band, Venco Neth

    erla

    nds

    3)

    Population (million): 60.7

    Market size (EUR million): 3,600

    Market position : #2

    Top-selling brands:

    Sperlari, Dietor, Saila,

    Dietorelle

    Ita

    ly2)

    6

    Solid positions in key markets

    Cloetta 24%

    Mondelez (fka Kraft)

    30%

    Mars/ Wrigley

    12%

    Fazer 6%

    Other 28%

    Cloetta 27%

    Nidar 20% Galleberg

    16%

    Brynhild 13%

    Others 24%

    Cloetta 15%

    Haribo 32%

    Toms 19%

    Valora 13%

    Others 21%

    Cloetta 25%

    Fazer 44%

    Panda 5%

    Mondelez (fka Kraft)

    5%

    Others 21%

    Cloetta 17%

    Perfetti 17%

    Haribo 9%

    Mondelez (fka Kraft)

    6%

    Others 51%

    Cloetta 15%

    Perfetti 22%

    Ferrero 10%

    Haribo 9%

    Others 44%

    Source: Datamonitor, Nielsen Note: 1) Confectionary market, 2) Sugar confectionary and pastilles market, 3) Sugar confectionery market. All numbers for market sizes represent entire confectionary market (to consumer)

  • 7

    Attractive non-cyclical market

    0

    1 000

    2 000

    3 000

    4 000

    5 000

    6 000

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

    EU

    Rm

    Chocolate Sugar confectionery Chewing gum

    Market development in Cloettas main markets1) Key trends

    Market driven by increase in population, higher prices and to some extent also increased per capita consumption

    Demand for differentiated and innovative products

    Strong brands gain market share

    CAGR 20002012: 2.0%

    CAGR 20002012: 1.2%

    CAGR 20002012: 2.6%

    Market size by region 2012 Consumer behavior

    Purchases highly impulse driven

    High brand loyalty

    Availability is an important factor for impulse driven purchases

    Appreciation of innovation taste, quality and novelties is important

    Source: Datamonitor.

    Note: 1) Includes Sweden, Finland, Norway, Denmark, Italy and Netherlands

    0

    500

    1 000

    1 500

    2 000

    2 500

    3 000

    3 500

    4 000

    IT NE SE DK FI NO

    EU

    Rm

    Chocolate Sugar confectionery Chewing gum

  • 8

    Best in class route to market

    Supermarkets Convenience stores /

    gas stations Other

    Customer relations

    Large and efficient sales organisation in place on all main

    markets

    80% of total sales generated from markets with own sales

    force

    Execution

    Ensure that negotiated listing and distribution agreements are

    followed

    Ensure good visibility on shelves and checkout lines

    Implement campaigns efficiently

    C o n s u m e r s C o n s u m e r s

  • Supply chain restructuring expected savings of approx. SEK 100m on EBITDA-level p.a.

    Gradual effect in 2013 and full effect from towards the end of 2014

    Implementation began June 2012

    Total implementation cost of approx. SEK 320370m

    Cost synergies from merger at least SEK 110m on EBITDA-level p.a.

    Majority of merger effects and supply chain restructuring program within LEAF achieved as of today

    Total implementation cost of approx. SEK 80m

    Procurement

    Process improve internal processes and systems

    Insourcing / all technologies in-house

    9

    20122013: Focus on margin expansion

    Cost effectiveness focus areas

  • Status

    10

    Synergy and restructuring program

    Integration process completed

    Only finalising of Tupla insourcing remains

    Factory restructurings proceeding according to plan

    Matching of products from the factory in Gvle essentially completed in Levice and Ljungsbro

    Test run of matched products ongoing

    Factory in Gvle to be closed during Q1, 2014

    Savings will be fully realised towards the end of 2014

    GVLE

    LJUNGSBRO

    SNEEK

    ROOSENDAAL

    TURNHOUT

    LEVICE

    GORDONA

    CREMONA

    SAN PIETRO IN CASALE

    SILVI MARINA

  • 11

    Clear strategy to deliver profitable growth

    Asset-light growth with low risk combined with potential upside from acquisitions

    Acquisitions

    New geographies

    New territory

    Broaden distribution

    Promotion planning and execution

    Advertising campaigns

    Seasonal products

    Packaging updates and upgrades

    Every day great execution

    Sizing and pricing

    Brand extensions

    Fill white spots

    Enter new categories with existing

    brands

    Geographical roll-out

    Brand re-launch

    Innovations

    Strategic initiatives

  • Examples of initiatives

    12

    Clear stra