LOTUS BAKERIES FINANCIAL ANALIST MEETING 16/02/2010

Transcription

1 LOTUS BAKERIES FINANCIAL ANALIST MEETING 16/02/2010 JBO/cve feb 2010

2 CONTENT 1. General 2. Turnover 3. Results Realisation most import projects and significant events in Most importants issues in Conclusion

3 1. GENERAL

4 1. General Results Anna s Pepparkakor Consolidated for the first time for one full year (in 2008: only for the month December) Divestment Harry s Benelux Turnover Harry s Benelux no longer included in consolidation as from 1 January 2009 Decision of Mc Vities to produce itself the Jaffa Cake Bars Sharp drop in sales 2009 compared with 2008

5 2. TURNOVER

6 2.1 Evolution of turnover in mio EUR ,7 261,1 224,5 179,3 152,

7 2.2 Evolution of turnover 2009 Total turnover ,1 mio EUR Evolution Compared with 2008: + 1,7% Like for like: stable evolution in 2009 versus 2008, taking in account: Takeover Anna s Divestment Harry s Benelux Falling sales Jaffa Cake Bars with expiry of the contract with Mc Vities

8 2.2 Evolution of turnover 2009 Belgium Total turnover remained stable compared with Commercial efforts and innovations within cakes were rewarded by good growth in Netherlands Gingerbread market decreased slightly in The Koninklijke Peijnenburg was able to maintain its market share

9 2.2 Evolution of turnover 2009 France Sales grew again in 2009, mainly with caramelized biscuits, caramelized biscuit spread and waffles UK, North-Eastern Europe, North America and Export Mainly caramelized biscuits and pepparkakor First half of 2009: sales in most of these four areas got off to a difficult start with the economic crisis. Second half: again a positive evolution

10 2.3 Evolution turnover per semester Mio EUR Sem 1/09 Sem 1/08 Evol % Turnover 125,9 123,7 + 1,7 Sem 2/09 Sem 2/08 Evol % 135,2 133,0 + 1,7

11 2.4 Geographical turnover 2009 per area N-America 6,1% UK 5,1% Export 5,1% Belgium 30,5% NE EU 8,1% France 14,0% Netherlands 31,0%

12 3. RESULTS

13 3.1. REBIT and REBITDA 2009 mio EUR Evolution % Turnover 261,1 256,7 + 1,7 Depreciation and amounts written off (12,1) (11,0) + 9,8 REBIT 34,6 34,0 + 1,6 REBITDA 48,2 45,7 + 5,5

14 3.2 Profitability percentages on turnover 2009 (%) 2008 (%) REBIT on turnover 13,3 13,3 REBITDA on turnover 18,5 17,8

15 3.3 REBIT and REBITDA per semester Mio EUR Sem 1/09 Sem 1/08 Evol % REBIT 16,1 16,9-4,7 Sem 2/09 Sem 2/08 Evol % 18,5 17,1 + 8,2 Mio EUR Sem 1/09 Sem 1/08 Evol % REBITDA 22,7 22,6 + 0,4 Sem 2/09 Sem 2/08 Evol % 25,5 23,1 + 10,5

16 3.4 Profitability percentages on turnover per semester Sem 1/09 (%) Sem 1/08 (%) REBIT on turnover 12,8 13,6 Sem 2/09 (%) Sem 2/08 (%) 13,7 12,9 Sem 1/09 (%) Sem 1/08 (%) REBITDA on turnover 18,0 18,2 Sem 2/09 (%) Sem 2/08 (%) 18,9 17,4

17 3.5 Operational charges Increase of operational charges due to: Expansion of consolidation scope (Anna s Pepparkakor) Increased marketing efforts

18 3.6 EBIT mio EUR Evolution % REBIT 34,6 34,0 1,6 Non recurrent operating result (0,3) (0,7) - 62,1 EBIT 34,3 33,3 3,1

19 3.7 Financial result mio EUR Evolution % Financial result (2,8) (6,9) - 59,3 The improvement of the financial result is due almost entirely to: the considerable fall in 2008 in the fair value of the interest hedges due to the application of the IFRS rules positive exchange rate differences were also realized in 2009.

20 3.8 Net financial debts (NFD) on December 31 - in mio EUR ,4 42,3 40,4 27,0 9,

21 3.8 Net financial debts keur Evolution % Net financial debts 27,0 40, Main elements: remaining 50% of the shares of Corona-Lotus Inc. were taken over, all shares in Lotus Bakeries UK were acquired, the shareholding in Harry s Benelux was sold. Capital expenditure: mainly investments in capacity extensions and innovation in the following plants: gingerbread bakeries in Sint-Johannesga and Geldrop Pepparkakor factory in Tyresö cake factory in Oostakker.

22 3.9 NFD/REBITDA NFD/REBITDA ratio A further positive evolution

23 NFD/REBITDA 3,50 3,03 3,04 3,00 2,50 2,48 2,23 2,00 1,67 1,50 1,00 0,50 0,92 0,39 1,09 0,88 0,56 0, : BGAAP : IFRS

24 3.10 Taxes mio EUR Evolution (%) Taxes (8,2) (6,4) 28,1 Tax % on EBT 26,0% 24,3% 7,0% Main reason for the increase of the tax burden in 2009 compared to 2008 is the growth of the profit before tax with 28,1% Due to the relative higher growth in area's with a tax rate above last year's average, the effective tax rate increases from 24,3% to 26,0%

25 3.11 Net result mio EUR Evolution % Net result 25,2 20,2 24,8 Minority interest 0,1 0,1-24,0 Group share 25,1 20,0 25,1 Two important elements positively impacted the 2009 net result compared with 2008: the capital gain on the sale of the shares in Harry s Benelux in 2009, the amounts written off recorded on the interest hedges entered into in 2008.

26 3.12 Net Cash flow mio EUR Evolution % Net cash flow 40,5 36,5 10,9 Evolution of net cash flow follows the positive trend of REBITDA and overall profitability.

27 3.13 Evolution gross dividend EUR per share 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 7,80 6,80 5,40 4,40 3,

28 4. REALISATION MOST IMPORTANT PROJECTS AND SIGNIFICANT EVENTS IN 2009

29 4.1. Consequences of Lotus Bakeries focus on core business

30 1. Acquisitions and divestments Integration of Anna s Acquisition of all the shares of the joint venture partner in USA: Corona-Lotus Inc Acquistion of all the shares of the joint venture partner in UK: Lotus Bakeries UK Termination of the marketing of Harry s products by Lotus Bakeries End of the agreement on McVities Jaffa Cake Bars

31 2. Intensified communication with the consumer More efforts in communication with the consumers to confirm and even increase confidence in our brands. Number of TV - GRP s in the Benelux TV-spot

32 4.2 Organisation

33 1. New organisational structure for area s and corporate as from 1 July 2009 Corporate Executive Committee Group Management Team Belgium Netherlands France Northern & Eastern Europe UK North America Export

34 2. Board of Directors Two new independent board members Dominique Leroy Benoit Graulich

35 3. Implementation SAP in Spain

36 4.3 Launch of new products

37 1. Caramelized biscuit ice cream

38 2. Lotus Crunchy caramelized biscuit spread

39 3. Caramallow

40 4. Pommeline

41 5. Theeleutjes

42 4.4 Commercial innovation

43 1. New packaging speculoos for Belgium and France

44 2. New packaging gingerbread Peijnenburg

45 4.5 Important TV-Campaigns and communication

46 1. Belgian TV campaign Lotus Frangipane

47 2. Netherlands: TV campaign Peijnenburg theeleutjes

48 3. France: Regional advertising

49 4. New consumer website Belgium

50 5. New corporate website

51 4.6 Capital Expenditure

52 1. Evolution capital expenditure in mio EUR ,7 10,3 7,3 10,8 9,

53 2. New dough preparation in Sint-Johannesga

54 3. New production line Tyresö

55 5. MOST IMPORTANTS ISSUES IN 2010

56 5.1 Lotus Bakeries growth strategy

57 5.2 Integration of Anna s

58 Anna s before integration Anna s Pepparkakor previously consisted of two major parts Activities in Nordic region, i.e. mainly Sweden, Finland and sales to Ikea The North-American activities

59 Anna s after integration North-Eastern Europe North America

60 Anna s after integration North-Eastern Europe North-Eastern Europe includes Anna s activities in the Nordic region Germany/Austria/Switzerland Czech Republic

61 Anna s after integration North-Eastern Europe Launch of caramelized biscuits in retail Sweden under the brand Anna s Implementation SAP in Anna s Pepparkakor (Sweden)

62 Anna s after integration North-America Mid 2010: commercial integration of Lotus Bakeries North America (the former Corona- Lotus Inc) with Anna s North America shall be completed. Caramelized biscuits (Lotus brand) and Pepparkakor (Anna s brand) shall be commercialized in the whole US in cooperation with one National Broker

63 Anna s after integration North-America Preparations for implementation SAP in Lotus Bakeries North America (San Francisco) and in Anna s North America (High River).

64 5.3 Format innovations and new product development

65 1. Madeleine prepacked

66 2. Caramelized biscuit ice cream (4 x 100 ml)

67 3. Filled butter madeleines

68 5.4 Important communication

69 1. New TV-spot speculoos en speculoospasta

70 2. World Expo 2010 Shanghai China

71 2. World Expo Shanghai CHINA The Expo Organising Committee expects to visitors. The Belgian organisers aim to host 10% of those visitors in the Belgian pavillion Lotus will sample a single wrapped cookie with a special wrapper One biscuit every second during 186 days

72 5.5 Capital expenditure

73 Capital expenditure Budget of 10.5 mio EUR Important part: capacity extension and rationalisations Lembeke: controlroom dough preparation Oostakker: prepacked Madeleines Comines: prepacked filled waffles Geldrop: gingerbread

74 6. CONCLUSION

75 Conclusion During the past years: excellent internal growth figures. 2009: Lotus Bakeries was able to maintain these additional volumes and turnover from previous years in an extremely difficult macro-economic environment. The biscuit market as a whole shrank during 2009 (following market data from the main home countries). Reinforcement of the confidence in the Group s brands through intensive communication with the consumer increasing product quality. Confirmation and even reinforcement of the strong profitability.

76 Conclusion Integration of Anna s is proceeding to plan and is of major importance as a potential source of further growth in North America and in the Nordic countries. Board and management of Lotus Bakeries are convinced that the strategy of continuing to invest significant amounts in its brands and the related specialties needs to be continued in the coming years. Intense focus on the main specialties will also be continued.

77 Conclusion Difficult to produce specific forecasts for 2010 and the coming years. Lotus Bakeries is, however, very confident that the fundamentals exist for further sales and profitability growth in the longer term.

78 QUESTIONS?