campofrio group 2007 - Campofrio Food Group WebSite

Transcription

-1-
CAMPOFRIO GROUP 2007
DISCLAIMER
This document has been produced by the Company with the sole purpose of presenting the
Group’s results for financial year 2007. All figures shown herein comply with Financial
Reporting International Standards, unless otherwise stated (IAS).
All information contained in this document and all details on future projections and estimates
have not been verified independently. Consequently, the Company assumes no responsibility
whatsoever that the information or opinions contained herein are exact and complete.
Neither the Company nor any of its advisors or representatives shall be held liable for
whatever damage or prejudice that may be caused (due to negligence or other reasons),
derived from the use of this document or its contents or in connection with this document.
This document shall not be considered an offer or invitation to investors to purchase or
subscribe any shares, and its does not form part of any other document or formal agreement.
2
OBJETIVES
¾
Presentation of 2007 preliminary results
¾
Review of market environment and Iberian Strategy
¾
Review of International Strategy
¾
Group Vision and main conclusions
3
-4-
KEY FIGURES 2007
5
GROUP MAIN FIGURES – 2007
EBITDA (€´000)
COMPARABLE EBITDA
+6,5%
2.248
+4,9%
90.099
85.895
Structure
optimization
Fresh Unit
91.501
85.895
-3.650
2006
2007
PBT (€´000)
OPERATING PBT PRO-FORMA
-4,1%
-10,0%
54.013
48.623
Results related
to non current
assets disposals
Fresh Unit
7.869
10.085
46.144
44.236
Structure optimization
-2.048
2006
2007
-3.650
6
GROUP MAIN FIGURES – 2007
ADJUSTED
COMPARABLE NET
PROFIT
NET PROFIT (€´000)
7%
+20%
Fresh Unit
30.091
32.153
Structure
optimization
30.091
35.999
-1.382
Tax net effect
2006
2007
DFN (€´000)
224.664
- 41 %
133.668
2006
2007
-2.464
7
BREAKDOWN BY DIVISION
CAMPOFRIO
GROUP
EBITDA
(000 €)
CAMPOFRIO
GROUP
PBT
(000 €)
R- 2006
R- 2007
Total Iberia
Fresh Unit
85.868
-
87.066
2.248
1.198
n.a
1%
n.a
Campomos
Tabco
Total International
Other*
Total
(9.716)
5.211
(4.505)
4.532
85.895
(5.061)
5.859
798
(13)
90.099
4.655
648
5.303
(4.545)
4.204
48%
12%
n.a
-100%
5%
Total Iberia
Fresh Unit
Campomos
Tabco
Total International
Other*
Total
* 4.298 (€´000) presented in Iberia in 2006
59.875
(13.722)
3.927
(9.795)
3.933
54.013
64.189
(2.048)
(12.636)
2.766
(9.870)
(3.648)
48.623
07vs 06 % Var.
4.314
n.a
1.086
(1.161)
(75)
(7.581)
(5.390)
7%
n.a
8%
-30%
n.a
193%
-10%
8
P&L SUMMARY
(€000)
2006
2007
% Growth
864.554
968.455
12,0%
EBITDA
85.895
90.099
4,9%
Amortization & Depreciation
28.971
31.942
10,3%
(16.233)
(18.178)
12,0%
5.606
(797)
-114,2%
Net Sales
Financial Results
Reasenable value for FI+ER*
Extraordinary Results
7.716
9.440
22,3%
PBT
54.013
48.623
-10,0%
Net Profit
30.091
32.153
6,9%
(*) FI: Financial Instruments. EX: Exchange Rates
9
BALANCE SHEET
('000 €)
2007
2006
Fixed Assets
350.094
370.524
Goodwill
135.429
135.477
25.354
43.354
16.443
88.340
Total Assets
527.320
637.695
Shareholder's Funds 2
314.049
286.002
14.878
16.453
133.668
224.664
Other liabilities 3
64.725
110.576
Total Liabilities
527.320
637.695
Working Capital
Other Assets
1
Minority Interest
DFN
DFN / Total S. Funds
0,41
0,74
Total S. Funds / Total Liabilities
0,32
0,27
Includes Assets related to discontinued activities
2006 includes 4% of Treasury Stock given as dividend in kind
3 Includes Liabilities related to discontinued activities
1
2
10
MAIN RATIOS
8,08 x
2,62 x
1,48 x
DFN/
EBITDA
2006
0,57
4,75 x
EBITDA/
Interest
2006
2007
0,61
24,49
2007
21,89
PER
EPS
(Net Profit
/ Ave. price)
price)
2006
2007
2006
2007
11
IBERIA FINANCIAL EVOLUTION
SALES (‘000 € )
SALES (‘000 TNS)
+ 3.5%
+ 1.5 %
775.497
802.530
2006
2007
171.142
168.541
2006
2007
Agregated sales
EBITDA (‘000 € )
PBT (‘000 € )
+ 1.4 %
+ 7.2 %
85.868
87.066
59.875
2006
2007
2006
64.189
2007
12
FRESH UNIT FINANCIAL EVOLUTION
SALES (€´000)
151.946
151.946
SALES (‘000 TNS)
96.535
2007
2007
EBITDA (€´000)
PBT (€´000)
2.248
2007
2007
-2.048
13
RUSSIA FINANCIAL EVOLUTION
SALES (€´000)
SALES (‘000 TNS)
- 11 %
88.155
78.716
- 18 %
29.970
24.703
2006
2007
2006
EBITDA (€´000)
2006
2007
PBT (€´000)
2007
2006
2007
-5.061
-9.716
+ 48 %
-13.722
+8%
-12.636
14
ROMANIA FINANCIAL EVOLUTION
SALES (€´000)
SALES (‘000 TNS)
- 5.5 %
+ 1.2 %
37.158
35.706
2006
2007
10.841
10.240
2006
2007
EBITDA (€´000)
PBT (€´000)
+ 12.4%
5.211
5.859
- 29.5 %
3.927
2.766
2006
2007
2006
2007*
* €1,5M negative impact due to exchange rate
differencies vs. previous year
-15-
IBERIA
16
MARKET
AND
COMPETITION
17
PROCESSED MEATS MARKET
SIZE AND GROWTH
By Categories
TOTAL MARKET 2007
EC + PPr
600.014 Tons
TOTAL MARKET 2007
EC + PPr
4.555.072 M €
13%
31%
13%
22%
7%
7%
8%
6%
2%
4%
2%
9%
9%
14%
28%
8%
4%
4%
5%
∆ VALUE 07/06
∆ VOLUME 07/06
5,6
1,5
4,5
7,3 6,5
13,4
10,8
8,6 9,2
4
2,1
4%
7,2
4,4
4,4
6,7
11,511,8
6,4 5,2
4,3
0,1
-0,4
TOTAL MARKET
YORK
Fuente; Nielsen ON’07- Scantrack
PAVO
FIAMBRES
SALCHICHAS
CHORIZO
SALCHICHON
FUET
JAMON CURADO
BACON
PPR
18
PROCESSED MEATS MARKET
SIZE AND GROWTH
By Formats
TOTAL MARKET 2007
EC + PPr
4.555.072 M €
TOTAL MARKET 2007
EC + PPr
600.014 Tons
22%
31%
27%
34%
4%
2%
15%
9%
19%
2%
19%
17%
∆ VALUE 07/06
∆ VOLUME 07/06
17,3
13,4
15,4
13,4
6,5
5,6
7,2
9,2
3,0
-0,5
TOTAL MARKET
Fuente; Nielsen ON 07- Scantrack
9,7
1,3
Corte
Loncheados
Minis
Tacos,Tiras
11,8
1,9
Salchichas
PPR
19
INFORMATION ON COMPETITION (Year 2007)
GRUPO CAMPOFRIO
78.297Tons
TOTAL MARKET
600.014 Tons
6%
13%
31%
2%
10%
7%
22%
0%
2%
8%
2%
6%
16%
9%
14%
4%
4%
8%
28%
ARGAL
8.267 Tons
EL POZO
31.111 Tons
7%
8%
9%
1%
9%
26%
19%
34%
8%
5%
11%
3%
3%
24%
8%
14%
COOKED HAM
FUET
TURKEY
CURED HAM
COLD CUTS
BACON
FRANKS
READY MEALS
CHORIZO
13%
8%
SALCHICHON
20
INFORMATION ON COMPETITION (Year 2007)
TOTAL MARKET
600.014 Tons
TARRADELLAS
44.647 Tons
3%
13%
31%
12%
7%
6%
8%
2%
9%
14%
4%
4%
8%
79%
ESPUÑA
1.628 Tons
PALACIOS
7.574 Tons
2%
17%
12%
47%
53%
1%
69%
COOKED HAM
FUET
TURKEY
CURED HAM
COLD CUTS
BACON
FRANKS
READY MEALS
CHORIZO
1%
SALCHICHON
21
SITUATION - CAMPOFRÍO GROUP
LEADERSHIP POSITION
CATEGORY
CAMPOFRIO GROUP
78.297Tons
6%
2%
10%
22%
0%
2%
6%
16%
28%
COOKED HAM
FUET
POSITION
PARTICIPATION (%)
YORK
1º
22,0
22
PAVO
1º
29,2
16
FIAMBRES
1º
12,6
8
EMBUTIDOS
2º
6,4
8
J.CURADO
1º
9,7
9
J.IBERICO
1º
7,4
1
SALCHICHAS
1º
43,7
28
P.PREPARADOS
2º
2,5
5
8%
TURKEY
CURED HAM
COLD CUTS
BACON
FRANKS
READY MEALS
CHORIZO
SALCHICHON
SPLIT (%)
22
STUATION – CAMPOFRÍO GROUP
EVOLUTION MARKET SHARE
Value
4 7, 9
4 5, 7
2005
2006
2007
4 5, 0
4 0 ,0
3 5, 0
∆ 06/05
∆ 07/06
TOTAL MARKET
6,3
7,2
BRAND MARKET
5,8
5,4
PRIVATE LABEL
8,1
13,1
3 0 ,0
2 5, 0
2 0 ,0
2 6 ,9
2 4 ,0
14 , 113 , 5 13 , 1
8 , 2 7, 9
7, 6
7, 2
4 , 94 , 34 , 6
5, 0
1, 4
2 ,4
1, 0
1 ,8
2 ,6 2 ,7
2 , 0 1, 9
2
PO
Z
10 , 0
OM
15, 0
2 5, 5
5, 4
5, 1
1, 5 1, 5
1, 1 1, 1
0 ,6
1, 6
1, 3
0 , 7 0 , 20 , 1
0 ,6 0 ,6
Fuente: AC Nielsen ON 07 Bimestral / Scanner
RE
ST
L.
P.
ES
PU
PA
LA
CA
S
AR
G
TA
RR
NA
V
RE
V
CF
G.
CF
0 ,0
47
23
ENVIRONMENT
24
DEMOGRAPHIC INFORMATION
National Population
44,1
Population growth index
42,7
41,1
40,5
44,7
45,1
43,2
112
41,8
113
111
39,6
109
108
106
103
104
104
104
104
104
103
102
102
102
103
103
103
103
102
101
101
101
100
1995
2000
2001
2002
2003
2004
2005
2006
2007
Source: INE / Eurostat
EU 15
SPAIN
SPANISH POPULATION
25
DEMOGRAPHIC INFORMATION
National Population
Population in Spain : Mill’s
42,7
40,5
39,6
0,5
0,9
41,1
1,4
43,2
41,8
2,0
2,7
3,1
44,1
3,7
44,7
4,1
45,1
+0,9%
4,5
+9,7%
9,9 %
2,3 %
+0,2%
1995
2000
2001
2002
2003
2004
2005
2006
2007
Population foreigners
Source: INE
% Variation
2006/2007
26
SPANISH HOMES
The amount of homes in Spain has continued to increase during
the past few years, although they are smaller in size.
15,8
13,5
Millions of homes
12,0
3,2
3,0
2,5
Nº of members per home
2,4
EU 15
2,8
2,8
2,4
2,4
España
27
SPANISH HOMES
Homes with 1 or 2 members compose practically one half of the
total homes in Spain
15,8
13,5
Millions of homes
12,0
Homes 1
member
Homes 2
members
Homes 3
members
Homes 4 or
more
1995
13,1%
22,9%
18,8%
45,2%
2007
21,4%
26,7%
21,7%
30,2%
28
MARKET TENDENCIES
HEALTH
• The obligations of modern life generate stress
• We live longer and want to grow old better
• Authenticity emerges, food that is more natural, fresh and traditional
“Feel good”
• The woman joins the work force
CONVENIENCE
• We value our free time more and more. We want things quick, easy and convenient
• Increase in the consumption of Ready Meals and eating outside of the home.
“Easy life”
SENSORY
“The pleasure of
eating”
PRICE
“Value for
money”
• Increase in the consumption of “microwaveable” products and ethnic food
• The ever increasing Supply of products: increase in the variety, with products that
are more and more sophisticated, crafted and exotic.
• The search for nutritional sophistication through premium, selective or high quality
products
• Growth in private label, Discounts
• Good degree of acceptance by the consumer, perception of quality in PL
29
Growth of Private Label
% Food + Personal Care Products
% Processed Meats
29,8
29,2
26,7
28,1
28,6
29,2
28,0
24,7
22,4
18,6
12,6
13,9
10,2
1993
1995
1998
2000
2001
2002
2003
Source TNS:
2004
2005
2006
Part of the Market (% Value) – Total Spain
30
CAMPOFRIO STRATEGY
31
VISION
One of the largest food companies in Spain
and among those with highest organic growth
Indisputable leader of Processed Meats
Acknowledged as one of the most innovative
companies (= perceived and communicated
innovation) within the food market
32
STRATEGY PILLARS
Strategy based on 4 leading brands (Campofrío, Navidul, OM,
Revilla)
Focus on strengthening our leadership in key categories through
relevant innovation, capitalizing on the 3 main market
tendencies: Health, Convenience and Flavour.
Strong support of Self-Service formats
New development of Ready Meals and Bread-based products
Constant growth in main customers
Strong support of Innovation in Foodservice
Sustained and profitable growth in Exports
33
KEY STRATEGIC AREAS
MARKETING PLANS
34
DELI
MARKETING PLANS
Focus on cooked ham and turkey
(Deli and Self-Service)
COOKED HAM
TRADITIONAL
SLICED
TURKEY/CHICKEN
JC
CF
Formato
Familiar
FINISSIMAS
POLLO
MINIS
VITALISSIMAS
FRESH
Formato
Standard
Formato
Finas
Formato
Standard
Formato
Finas
35
MARKETING PLANS
Focus on Cured Ham in Self-Service
36
MARKETING PLANS
FRANKS, COLD CUTS, SAUSAGES
IMMIGRANT PRODUCTS
Salchichón
Cervecero
Salami de
Vara
Salchichas
Rancheras
Cabanos
37
MARKETING PLANS
BREAD-BASED / READY MEALS
PIZZAS WITH SAUCES
NEW VyV CONCEPTS
ROSCAPIZZA
GOLDEN
SALADS AND FILLERS
38
KEY STRATEGIC AREAS
COMMERCIAL PLANS
39
COMMERCIAL PLANS

Growth in Top 5 customers > company average

Assure maintenance of margins

Assure listings of key SKU’s (sliced) in key customers.

Increase profitability : focus on Traditional

Leadership position in Customer Satisfaction Surveys ( Top 5 big companies)

Develop / Implement superiority plan in PoP
¾
Category Captain in Key Categories
¾
Leader in RFS packaging

Develop strategy of Food Solutions in Food Service

Sustained and profitable growth in Export
40
Position of leadership in
Customer Satisfaction Surveys
Índice K® Study through personal interviews with Directors – General
Directors and Salespersons and Purchasers of :
• CARREFOUR
• CONDIS
• GRUPO EROSKI
• H.D. COVALCO
• ALCAMPO
• HERMANOS MARTIN
• MERCADONA
• BON PREU
• DIA
• COVIRAN
• CAPRABO
• AHOLD
• CENTRALES DE COMPRA
• IFA
• EUROMADI
• GRUPO EL ÁRBOL
• CONSUM
41
RANKING 2006
RANKING 2006
Danone
Coca-Cola
P&G Perf
Pascual
Campofrío
Puleva
Asturiana
Pepsi-Cola
Henkel
Bimbo
Sara Lee
L Oreal
Nabisco
Heineken
Panrico
Koipe
Mahou
Damm
Nestlé
Borges
Tarradellas
Diageo
Total empresas 2006
RANKING 2006
8,44
7,86
7,62
7,49
7,47
7,47
7,43
7,27
7,26
7,22
7,17
7,13
7,08
6,98
6,94
6,88
6,83
6,78
6,74
6,49
6,47
6,40
Spontex
Puig
Cuétara
Vileda
El Pozo
Celta
Bella Easo
Ato
3M
G.Biscuit
Domeq
Clas
Albal
Lever
Kraft
Ybarra
Colgate
G.Byass
Argal
Osborne
Senoble
A.Toledo
6,39
6,35
6,31
6,29
6,27
6,27
6,26
6,18
6,05
6,05
6,01
5,96
5,90
5,82
5,78
5,77
5,53
5,51
5,32
5,16
4,22
3,83
42
RANKING 2007
ADVANTAGE GROUP
1. Kellogg’s
2. CAMPOFRIO
3.- Danone Grupo (Dairy + Biscuits + Waters).
4. P&G
5. Kimberly Clark
6. Arbora Ausonia
7. Unilever
8. Coca Cola
9. Colgate – Palmolive
10. Nestlé
11. Cadbury
12. Pepsi - Frito Lay
13. Sara Lee
14. Kraft Foods
15. L’Oreal
16. Masterfoods
17. Henkel – Swarzkopft
18. Pascual
19. SOS Cuetara
43
Superiority Plan at POP
In 2006, Campofrio Group occupied 35% of the free space
available in the PoP for cooked processed meats.
Picken
Casademont 2%
3%
Argal
3%
Grupo Campofrio
35%
+ 9 % Vs AAnt
El Pozo
7%
Otros
22%
Source: Nielsen Cross Categ.
Alimarket Feb 2.007
MDD
28%
44
FOODSERVICE STRATEGY
Food Service
Food Solution
High Volume,
Low Margin
High Volume,
Sustained Margin
Food Company in
Bareca/Horeca
Food Company
for Barceca /
Horeca
45
Evolution Campofrio Exports
Volume
Value
10.148.579
12.000.000
10.000.000
7.813.780
8.059.158
9.249.440
50.000.000
8.000.000
40.000.000
6.000.000
30.000.000
4.000.000
20.000.000
2.000.000
10.000.000
0
2004
2005
2006
2004
2005
2007
2006
2007
54.179.278
60.000.000
48.620.391
40.420.917
41.871.129
0
2004
2005
2006
2004
2005
2006
2007
2007
46
CF Quota per Product Family
Campofrio Quota = 15% of Spanish exports
11%
19%
27%
2%
100%
80%
Campofrio
60%
España
40%
20%
0%
JAMONES
Source: Internal Revenue Ministry / Cf Internal Data
EMBUTIDOS
COCIDOS
RESTO
47
CF Quota - Volume Top 10 Countries
ESPAÑA
CAMPOFRIO
16.000.000
14.000.000
7%
12.000.000
10.000.000
9%
8.000.000
3%
6.000.000
37%
77%
47%
GREECE
3%
UK
4.000.000
1%
15%
8%
2.000.000
0
ANDORRA
HOLLAND
CZECH REP
ITALY
BELGIUM
RUSSIA
GERMANY
FRANCE
Source: Internal Revenue Ministry / Cf Internal Data
48
EXPORT STRATEGY
1.- SUSTAINED AND PROFITABLE GROWTH:
1.1 Achieve 15% participation in France and Germany
1.2 – Optimize countries with low profitability (Germany, Italy)
1.3 – Optimize results in categories with low margin: Cured Ham.
2.- REDUCE COMPLEXITY
3.- DEVELOP COUNTRIES WITH HIGH POTENTIAL: Japan, Scandinavian
Countries, USA, China …
49
KEY STRATEGIC AREAS
PORTUGAL
50
STRATEGY FOR PORTUGAL
2nd position in the market, far from the leader Nobre
Need for greater focus:
¾ Only one brand: CPF
¾ Focus on poultry (weakness in Nobre), pizzas
(Portuguese Tarradellas), Frankfurters
¾ Discontinue unprofitable categories
¾ Focus on Modern Trade-Key customers
¾ Lead development in sliced format
Test new markets to achieve critical mass
Develop synergies with Spain for Private Label and
FoodService
Leadership behaviour
-51-
INTERNATIONAL
52
RUSIA
¾ Improvement of product portfolio
¾ Innovation development. New lauchings: “Hot Dogs Atmosphere”
and “Meat from Our farm”
¾ Growth in Modern Distribution Channel
¾ Raw material prices increase in 3 quarter
¾ General Expenses optimization
53
ROMANIA
¾ Improvement of product portfolio
¾ Good management of material cost
¾ Cost efficiency
¾ All in all, Romania subsidiary managed to improve its
profitability reaching and EBITDA margen of 14,7%
¾ 2008 Strategy: to mantain premium market position of the
company and high profitability
-54-
GRUPO CAMPOFRIO
55
SECTORIAL SUMMARY
The number of homes keeps growing (16MM), but smaller (48% have
1-2 members).
Maturing population: growing importance of the target SENIORS (in
2005 where 7.2MM people >65 years).
Population growth thanks to immigration: 4.5 million people (10%
national; growing by areas).
The consumer election drivers are still : HEALTH, CONVENIENCE,
FLAVOUR AND … PRICE.
Categories of FMCG with bigger growth are those focus on the most
demanded
benefits
by
customers:
taking
care
PREMIUM.
The private label keeps growing at very high levels
products
and
56
STRATEGIC ACHIEVEMENTS OF THE GROUP
¾ To drive a profitability improvement of the company (cost
efficiency)
¾ Rationalization of the products portfolio
¾ Support to our brands
¾ Bet for the new trends of the market (innovation)
¾ Restructuring (disinvestment of the non strategic activities or
assets))
57
VISION
One of the top food companies in Spain and
between the ones with bigger organic growth,
with a significant presence in East Europe
Undisputed leader of the meat elaborated market
Recognize
companies
as
(=
one
of
the
innovation
most
innovative
perceived
communicated) of the food market
and
58
KEY STRATEGIC AREAS
¾ Business
transfer
from
deli
to
sliced
products -
Adjustment to modern distribution
¾ To be on line with the life style and needs of customers
¾ Development of the innovation perceived
¾ Cost efficiency
¾ Make the difference from private label: I+D+I, Publicity,
First brand in the market
¾ Develop Food Solutions concept in Food Service channel
-59-