second-tier markets as first priority
DESCRIPTION
Presentatie FrieslandCampina tijdens Emerging Markets seminar "Zakendoen in BRIC" op 30 januari 2013TRANSCRIPT
Second-tier markets as first priority
Deloitte Emerging markets seminar 30 January 2013
Who we are
20.000 employees
14,391 member dairy farms
6,307 revenue
(in millions of euros)
12,662 employees
71 locations
Europe
The Netherlands Germany Belgium Hungary Romania Greece Russia
United Kingdom France Spain Italy
Austria
Africa and
The Middle East
Ghana Nigeria
Saudi Arabia
United Arab Emirates
Asia
China Hong Kong
Indonesia
Singapore
Malaysia
Thailand
The Philippines Vietnam
India
North and
South America
United States of America
1,996 revenue
(in millions of euros)
5,202 employees
26 locations
999 revenue
(in millions of euros)
1,032 employees
4 locations
324 revenue (in millions
of euros)
140 employees
5 locations
Located in 27 countries: 30% global sales in second-tier
Key figures in million euro
Results 2011
Net sales 9.626
EBIT 403
Net profit 216
Balance sheet
Total assets 5.739
Equity 2.264
Ratio’s
Interest coverage ratio 7.9
Net debt / EBITDA 0.9
Solvability 39,4%
What we do
Farmer Production Retail & others
Consumer
Valorising milk: 1 Million liter/hour
Consumer Products Europe
Consumer Products
International
Cheese, Butter & Milkpowder
Ingredients
Our products, our customers
“Bringing Essential Nutrients from Natural
Dairy to People Everywhere”
Our aspiration, our core promise
What motivates us
9 billion people: food security…
… and nutrient security
Dairy is
COOL
Why we win in second-tier markets: sustainability, science, strategic channels and size
Health & nutrition
Tackling nutrient deficiency & obesity
Sustainable dairy farming Sets the standard
Sustainable dairy chain
More efficient use of natural resources
Dairy development
Asia, Africa
• Fundamental global need for healthy food • Milk is one of the most nutrient-rich foods • As one of the leading multinational dairy businesses,
we aim to contribute to sustainable production • We want to show leadership in the field of Corporate Social
Responsibility by means of:
Sustainability: Grass to glass in Holland…
Sustainability …and connected to local small dairy farmers
Dairy Development
Helping 40,000 small farmers in
Asia and W-Africa
Livelihood support program 40,000 small
farmers in dairy sector SE Asia and Nigeria
(since 1995)
Keep local milk production in line with the
growing need for nutritious food
Close cooperation with authorities in countries
Program aimed at:
• Knowledge transfer via model farms
• Technical farm services & Quality Assurance
• Higher productivity cows and farms
• Stable jobs and higher family income farmers
Science: At home: Innovation Centre Wageningen…
• New FrieslandCampina Innovation Centre in Wageningen
• 450 specialists will work in the Innovation Centre in 2013
Strategic channels: Moving directly into E-marketing…
Traditional outlets
Hypers / Supers
Supply driven
Assortment driven
Convenience driven
Convenience stores
Assortment &
Convenience driven
Ecommerce
De
ve
lop
ed
CD
mo
de
l
De
ve
lop
ing
CD
mo
de
l
Traditional outlets
Hypers / Supers
Supply driven
Convenience driven
Convenience stores
Assortment &
Convenience driven
Ecommerce
Strategic channels: …but general trade is neither out nor down
Eur 650 Bln Eur 950 Bln
2011* 2015* Market +46%
MT +79%
GT +36%
*Indonesia, Malaysia, HK, Thailand, Vietnam, Middle East, Nigeria, Russia, Romania. Source: Planet Retail
Size: Decades of presence in South and East Asia*…
#3
#2
#2
#1
#2
Hong Kong
Indonesia
Thailand
Malaysia
13% market share (IFT)
22% market share
19% market share
#2
Philippines
15% market share
30% market share
15% market share
#7
China
Japan
Ingredients sales
Myanmar Laos, Cambodia
Exports from Thailand
* indicative data
Vietnam
FrieslandCampina growth initiatives
China: - Grass to glass - Infant nutrition
- Ingredients
ASEAN: - Affordable
- Broad dairy range - Goodness of milk
- Focus on nutritional deficiency reduction
Size: …and constantly expanding our presence
Singapore R&D centre to be established 2013
Exploring investments in Partnerships for Chinese
B2B market
FrieslandCampina completes Alaska Milk acquisition
Best Performing stock Highest return over 3 yrs
DLMI Bhd
What it delivered
From an average performer… (2006)
2006
2006
Friesland FoodsCampina
Cono
Doc
Nemelco
Bel
MUH
Hochwald
NordmilchHumana
Arla
27
28
29
30
31
32
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Milk
price incl m
em
ber
bonds
Members/suppliers milk (mio kg)
average milk price 2006 = € 29,50
…to outperformance versus peers (2011)
FrieslandCampina
Cono
DOC Bel
Nemelco
MUH
Hochwald
DMK
Arla
Milcobel FC Belgium NV
30
32
34
36
38
40
42
44
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Milk P
rice incl. m
em
ber
bonds
Member milk volume in mio kg
Thank you