FINANCIAL ANALYSTS MEETING. Viroflay, March 16, 2017

Transcription

1 FINANCIAL ANALYSTS MEETING Viroflay, March 16, 2017

2 DAIRY ENVIRONMENT WORLDWIDE DAIRY CONTEXT

3 STAGNATION OF MILK PRODUCTION Stagnation of worldwide milk production in 2016, compared with historical growth of +15 to +20 billion liters per year Chine 12 m 2016 : - 4,2% 3

4 STAGNATION OF MILK PRODUCTION Stagnation of worldwide milk production in 2016, compared with historical growth of +15 to +20 billion liters per year Change in milk volumes within major regions Net increase for 20 countries billion liters 4

5 STAGNATION OF MILK PRODUCTION VERY PRONOUNCED IN THE 2 ND HALF OF THE YEAR ORIGINS: VERY LOW MILK PRICE METEOROLOGICAL CONDITIONS 5

6 MILK PRODUCTION European milk collection: % 6

7 SLOWDOWN IN MILK PRODUCTION Contrasted evolution for production in Europe in 2016 Change in milk deliveries January-November 2016 vs 2015 in thousands of tons % +2.4 % +2.3 % + 7.2% Total increase of thousand tons -2.8% -4.5 % 7

8 MILK PRODUCTION Growth in European milk production limited to +0.2% in 2016 Evolution sur 12 mois glissants 8

9 THE DAIRY MARKETS IN 2016 MILK S TWO COMPONENTS - PROTEIN - BUTTERFAT HAVE EVOLVED DIFFERENTLY 9

10 SKIM MILK INVENTORIES THE DAIRY MARKETS IN 2016 Record world inventories of powdered skim milk: close to 600,000 tons in 3 regions! Canada* USA EU inventories EU-intervention *Figures for Canada confidential since August

11 SKIM MILK INVENTORIES INTERNATIONAL TRADE Main world exporters volumes in tons THE DAIRY MARKETS IN

12 SKIM MILK INVENTORIES INTERNATIONAL TRADE Main world importers volumes in tons THE DAIRY MARKETS IN

13 SKIM MILK INVENTORIES PRICE TRENDS THE DAIRY MARKETS IN

14 BUTTER & BUTTEROIL INTERNATIONAL TRADE Main world exporters volumes in tons THE DAIRY MARKETS IN

15 BUTTER & BUTTEROIL INTERNATIONAL TRADE Main world importers volumes in tons THE DAIRY MARKETS IN

16 BUTTER PRICE TRENDS THE DAIRY MARKETS IN ,272 3,015 16

17 WHEY PRICE TRENDS THE DAIRY MARKETS IN

18 DAIRY ENVIRONMENT DAIRY CONTEXT IN FRANCE

19 MILK PRODUCTION Milk collection in France 2015: +0.3% 2016: -2.2 % 2017: -3,5 % 19

20 SAVENCIA S MILK PRICE IN FRANCE 20

21 MILK PRICE TREND Comparison of the price for TPQC 38/32 milk for SAVENCIA France and 3 major dairy countries 2016 average Price /1000 liters Allemagne Pays Bas Nouvelle Zélande SAVENCIA France GERMANY NETHERLANDS NEW ZEALAND SAVENCIA FRANCE 21

22 MILK PRICE TREND COMPARISON OF GERMAN AND FRENCH MILK PRICES Prix France 22

23 2017 MARKETS ON THE RISE CONFIRMATION OF 2016 WITH A CONTRASTING EVOLUTION OF PROTEIN AND BUTTERFAT 23

24 24 SUPPORTING OUR MILK PRODUCERS TOWARDS SUSTAINABLE MILK PRODUCTION Respect the charter of best farming practices Change farming practices in the interest of progress Produce milk meeting consumers expectations

25 25 THE CHARTER OF BEST FARMING PRACTICES: A RESOURCE FOR FRANCE S DAIRY INDUSTRY A collective resource comprising 6 essential commitments:

26 MEETING SOCIETAL EXPECTATIONS 26

27 27 CONCLUSION Political choices have created a strong milk market volatility A need for structural measures - Competitiveness - Supply management

28 OTHER DAIRY PRODUCTS

29 MILKAUT ARGENTINA 29

30 AFP - USA 30

31 ARMOR* 31

32 MODILAC 32

33 FOOD SERVICE 33

34 FOOD SERVICE AOP CHARENTE POITOU 34

35 FOOD SERVICE 35

36 CORMAN - BELGIUM 36

37 ELVIR 37

38 ELVIR 38

39 39

40 FINANCIAL ANALYSTS MEETING Viroflay, March 16, 2017

41 CHEESE PRODUCTS

42 42 3 FUNDAMENTALS Cheese specialties Product Brand Premium Comprehensive know-how Quality Innovation Competitiveness Local brands In touch with culture, worldwide

43 43 OUR BRANDS Heritage brands Brands for today

44 HERITAGE BRANDS 44

45 HERITAGE BRANDS 45

46 46 BRANDS FOR TODAY Responsible Contemporary Proud of their origins Digital Effective

47 47 RESPONSIBLE BRANDS Sustainable development

48 48 RESPONSIBLE BRANDS Naturalness

49 49 RESPONSIBLE BRANDS Nutrition Low salt range Low lactose range

50 50 CONTEMPORARY BRANDS Snacking

51 51 CONTEMPORARY BRANDS Snacking Glocal strategy: global know-how, local brands:

52 52 CONTEMPORARY BRANDS Snacking in EUROPE

53 53 CONTEMPORARY BRANDS Snacking INTERNATIONALLY

54

55 55 BRANDS PROUD OF THEIR ORIGINS Regional and traditional cheeses The taste of excellence

56 56 BRANDS PROUD OF THEIR ORIGINS Vive la France!

57 BRANDS PROUD OF THEIR ORIGINS 57

58 58 BRANDS PROUD OF THEIR ORIGINS The French touch

59 59 BRANDS PROUD OF THEIR ORIGINS A new abbey cheese

60 DIGITAL BRANDS 60

61 61 BRANDS OF TODAY The most effective merchandising Supply chain

62 62 IN CONCLUSION Specialties: differentiation and quality Leader for innovation, for snacking in particular Effective merchandising A great year for brand growth, mainly internationally

63 FINANCIAL ANALYSTS MEETING FINANCIAL ANALYSTS MEETING March 16, 2017

64 2016 FINANCIAL STATEMENTS

65 KEY FIGURES Net sales -24 M -0.5% ROC 3.4% 4.2% +35 M +23% 4,5% 3,5% 2,5% 1,5% ,5% -0,5% 400 Net debt Group share of net income 2.4% 2,5% 2,0% 48 M -12% % +47 M +83% 1,5% 1,0% ,5% 0,0% 65

66 NET SALES FOR M -2.7% 98 M 2.2% -24 M -0.5% M M CA Déc SALES 2015 DEC 2015 Effet devises CURRENCY Effet SCOPE périmètre Evolution ORGANIC organique GROWTH CA Déc 2016 SALES DEC

67 QUARTERLY GROWTH SAVENCIA SA % 5.5% 1.4% -0.7% 1.0% 2.2% T1 T2 T3 T4-2.7% % Trimestrielle By quarter Cumulée Total Growth in strategic brands and international sales 67

68 QUARTERLY GROWTH CHEESE PRODUCTS % 2.6% 1.5% 1.0% 1.0% 0.2% T1 T2 T3 T4-0.6% -0.6% Trimestrielle By quarter Cumulée Total 2015 Growth in strategic brands fuelled by volume/mix for +2.4% Price impact of -0.9% 68

69 QUARTERLY GROWTH OTHER DAIRY PRODUCTS % 2.3% -0.9% 6.8% 4.1% 1.6% T1 T2 T3 T4-4.0% -4.0% Trimestrielle By quarter Cumulée Total 2015 Growth fuelled by volume +4.8% Price impact of -0.7% 69

70 NET SALES M M 44.2% ODP 43.9% -0,3 58.6% CP 59.1% 0, % Unallocated % The relative weight decline of Other Dairy Products is due to the negative foreign exchange impact 70

71 NET SALES: GEOGRAPHICAL SPLIT -3.0% -1.2% +4.2% 32.7% 30.5% 29.7% 40.9% 40.1% 39.7% 26.4% 29.4% 30.6% France Rest of Europe Other countries 2014 (hors Schratter) (-) Price factors (-) Foreign exchange impacts, mainly internationally (+) Organic growth, in particular internationally 71

72 EVOLUTION OF AVERAGE FOREIGN EXCHANGE RATES (2016 VS 2015) 15 En % 5 HUF -0,5% CZK 0,9% USD 0,2% CLP -3,0% -5 CHF -2,1% PLN -4,3% BRL -4,1% CNY -5,4% -15 UYU -10,0% -25 GBP -12,9% UAH -16,4% -35 EGP -29,7% ARS -58,9% -65 Weakening of most currencies against the euro -122 M 72

73 OPERATING COSTS (-) = decrease m Favorable Unfavorable External expenses etc Purchases Sales of surpluses Total variance Like-for-like -3.3% -0.7% 64.3% 62.6% Consumables Payroll Inflation Total variance Like-for-like 2.3% 6.1% Depreciation, impairment & provisions Total variance Like-for-like Other operating income & expense Total variance Like-for-like 4.9% 6.2% 2.2% 4.8% 18.5% 19.0% Team reinforcements Investment 2.7% 2.8% Misc. taxes Advertising Leasing 11.1% 11.4% 73

74 CHANGE IN CURRENT OPERATING PROFIT VERSUS DECEMBER : M 2016: M Produits Cheese Products Fromagers Autres Other Dairy Produits Products Laitiers Non Unallocated affecté 74

75 CURRENT OPERATING MARGIN 6,0% 5.3% 6.0% CHEESE PROD. 4,0% 3.4% 4.2% SAVENCIA SA 2,0% 1.7% 2.4% OTHER DAIRY Prod. 0,0%

76 AVERAGE WORKFORCE France Europe Other countries Cheese Products Other Dairy Products Unallocated Reinforcement of sales and production structures (in all zones) Reorganization in Europe and South America 76

77 OTHER OPERATING INCOME & EXPENSES m Restructuring Impairment of assets Litigation / losses etc

78 NET FINANCIAL EXPENSE Net interest (excluding hedging) m Change Hedging Commissions Foreign exchange Other items Total Of which: IFRS

79 TAX CHARGE Actual tax ( M) Effective Tax rate (%) 38.7% 29.9% 79

80 INCOME STATEMENT Actual % sales Actual % sales IFRS net sales Evolution N/N-1-3.6% -0.5% Current operating profit Evolution N/N-1 38% 23% Non-recurring items Operating profit Evolution N/N-1 21% 53% Net financial expense Profit pre-tax Evolution N/N-1 42% 58% Taxes on income Continuing operations, net of tax Group share of net income Evolution N/N-1 44% 83% 80

81 2016 CASH FLOWS m m fall in net debt Cash flow Capex Structure Dividends etc. 81

82 BALANCE SHEET ( M) Fixed assets Financial assets Working capital Equity Financial Debt Other liabilities 82

83 Share price 83

84 EVOLUTION OF THE SHARE PRICE IN SAVENCIA CAC all tradable /16 02/16 03/16 04/16 05/16 06/16 07/16 08/16 09/16 10/16 11/16 12/16 + low high average change 12.46% 84

85 FINANCIAL ANALYSTS MEETING Viroflay, March 16, 2017