Raisio s Interim Report January-June 2015 CEO Matti Rihko Raisio plc 11 August 2015 Q2/2015
Highlights Q2/2015 Raisio s EBIT of 14.0 M is the fourth consecutive quarterly result better than in the comparison period and also Raisio's best quarterly result Raisio raising the guidance for the financial period Raisio estimates its 2015 net sales to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of 2014. 2
Raisio Group Q2/2015 EBIT 14.0 (8.5) M, +65% 9.9% (6.4%) of net sales Brands Division s EBIT 14.3 (8.2) M, +74% EBIT 14.6% (11.1%) of net sales Group profitability primarily improved due to the Benecol business acquired in November 2014 EBIT for UK s Cereal and Snack business positive Raisioagro s EBIT of 1.4 M at the comparison period level Strong cash flow from business operations, 18.6 (5.8) M One of the world's strongest patent portfolios in cattle feeds developed for Benemilk during 2015 3
Group EBIT 2007 Q2/2015 M 50 45 40 35 30 25 20 15 10 5 0-5 2007 2008 2009 2010 2011 2012 2013 2014 Q2/2015 (Continuing operations, excluding one-off items) Rolling 12 months EBIT 4
Group EBIT M Excluding one-off items % 50 10 40 30 31.8 34.6 39.3 34.8 23.7 8 6 20 10 13.8 4 2 0 2011 2012 2013 2014 1-6/2014 1-6/2015 0 EBIT EBIT % 5
Group EBIT by quarters M 15 Excluding one-off items 14.0 10 8.0 9.6 10.6 11.0 10.2 8.5 10.7 10.7 12.0 12.1 8.4 8.9 5 6.1 6.6 5.4 4.9 6.6 0 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 6
Great dividend history 0.16 0.14 0.12 0.10 0.09 0.10 0.11 0.12 0.13 0.14 0.08 0.07 0.06 0.04 0.03 0.04 0.02 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 7
Group net sales M 700 600 500 400 553 584 558 494 300 200 100 249 264 0 2011 2012 2013 2014 1-6/2014 1-6/2015 Brands Raisioagro 8
Group net sales by quarters M 200 150 151 151 149 135 128 122 117 123 133 142 142 161 150 127 139 138 131 118 100 50 0 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 9
Key figures, result 4-6/ 2015 4-6/ 2014 1-6/ 2015 1-6/ 2014 2014 Net sales M 141.5 132.5 264.0 249.1 493.9 Change in net sales % 6.8-10.9 6.0-10.0-11.4 EBIT M 14.0 8.5 23.7 13.8 34.8 EBIT % 9.9 6.4 9.0 5.6 7.0 Depreciation and impairment M 5.9 3.6 9.5 7.5 14.6 EBITDA M 20.0 12.1 33.2 21.4 49.5 Net financial expenses M -0.4 0.0-0.8-0.3-1.5 Earnings per share (EPS) 0.07 0.04 0.12 0.07 0.18 Figures excluding one-off items 10
Key figures, balance sheet 1-6/ 2015 1-6/ 2014 2014 Equity ratio % 57.5 68.1 60.2 Gearing % 22.4 2.0 22.2 Net-interest bearing debt M 75.6 6.4 72.2 Equity per share 2.15 2.03 2.07 Investments* M 5.1 10.8 104.9 * Including acquisitions 11
Brands 12
Brands Division Brands Division and key markets: Snack & Cereal: UK, Northern Europe, Russia Home markets for Benecol consumer products: UK, Ireland, Belgium, Poland, Finland, Portugal and Hong Kong as well as ingredient sales to licensing partners Confectionery: UK, Czech Republic and export Benemilk Ltd Net sales 97.8 (73.7) M EBIT 14.3 (8.2) M * One-off items of 2.9 M include a write-down from the divestment of Sulma pasta factory in Poland and streamlining efforts at UK s Southall factory * Excluding one-off items 13
Benecol Net sales 36.0 (13.9) M Net sales increased by almost 20 million euros due to the Benecol business acquired from Johnson & Johnson Benecol accounts for clearly over 50% of the Brands Division s EBIT Sale of plant stanol ester to licensing partners at the comparison period level Benecol is the market leader in the UK and Poland that are also the largest markets for Benecol consumer products Benecol products launched in China in June 2015; South Korea and Brazil other new market launches 14
Snack & Cereal Net sales 36.3 (35.6) M UK improved EBIT for snack bars positive and up from the comparison period Production efficiency further improved at the Newport factory EBIT for Cereal business at the comparison period level, but negative Production of savoury snacks terminated at the Southall factory, which decreases costs and increases flexibility North Europe improved EBIT clearly better than in the comparison period Elovena product range expanded, instant porridges increased in popularity Gluten-free is a consumer trend also in Finland, Provena product range expanded Positive EBIT for Russia 15
Benemilk Active development work to expand and strengthen IPR Almost 30 patent applications in the portfolio Good activity with partner candidates continued New feeding trials under preparation with partner candidates for the end of 2015 In addition to the licensing model, an ingredient business model has been developed Sale of Primafat ingredient will cover the feeding models of all essential highly developed milk chains We aim at close cooperation with globally operating producers and processors of palmitic acid 16
Confectionery Net sales increased, EBIT slightly down due to increased marketing campaigns Sales growth in Raisio s own branded products in the UK and Czech Republic Despite the UK s steady consumer demand, sales grew significantly in Poppets, XXX and Just brands Intense industrial competition for retailers private label orders continued and Big Bear s production volumes were down from the comparison period Real fruit juice containing Fox s Candy Bear products launched in the UK 17
Brands Division s EBIT M Excluding one-off items % 50 40 30 31.2 37.4 41.4 35.9 25.6 16 14 12 10 8 20 14.6 6 10 4 2 0 2011 2012 2013 2014 1-6/2014 1-6/2015 EBIT EBIT % 0 18
Brands Division s EBIT by quarters M Excludind one-off items 20 15 14.3 10 5 5.8 9.0 9.4 6.4 11.3 8.4 11.0 11.1 8.2 10.4 9.7 10.8 10.8 7.6 6.6 10.0 10.6 0 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 19
Brands Division s net sales M 350 300 315 330 305 306 250 200 150 100 50 146 192 0 2011 2012 2013 2014 1-6/2014 1-6/2015 Net sales Q2/2015: 97.8 M (73.7 M ) 20
Raisioagro 21
Raisioagro EBIT at the comparison period level, relative profitability improved Sales in highly processed special products increased Sales in farming supplies for dairy farms increased Slow start for the fish feed season due to cold spring Net sales cut by 28% Comparison period net sales include vegetable oils and pig and poultry feeds whose production were discontinued in autumn 2014 Working capital was 9 M lower than in the comparison period due to streamlining efforts 22
Raisioagro Cattle feeds In Finland, over 10% of dairy cattle Benemilk-fed Component feeding more commonly used, concentrates and protein concentrates increasing in popularity Cattle feed market remained cautious due to the milk import ban in Russia Export of Benemilk feeds to Russia started again Fish feeds Cold spring and cool waters slowed down the start of the fish feed season Raisioaqua launched Hercules Plus feed innovation enhancing fish growth and increasing egg production Online store Online sales grew by over 50% Customer base and order volume significantly higher than in the comparison period 23
Raisioagro s EBIT M Excluding one-off items 5 4 3 2.9 3.1 3.4 2 1 1.4 1.5 0-1 -0.3-2 -3 2011 2012 2013 2014 1-6/2014 1-6/2015 24
Raisioagro s EBIT by quarters M Excluding one-off items 3 2 2.3 1.3 1.4 1.4 1.2 2.6 2.0 1 0-1 0.7-0.6 0.0 0.1 0.4 0.4-0.1-0.5-0.3 0.0-2 -1.8-3 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 25
Raisioagro s net sales M 300 250 200 241 256 254 202 150 100 50 112 77 0 2011 2012 2013 2014 1-6/2014 1-6/2015 Net sales Q2/2015: 44.7 M (62.6 M ) 26
Guidance 2015 Raisio expects its EBIT to return on its long-term upward trend. Raisio estimates its net sales of 2015 to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of 2014. 27
28