Aryzta Ag · SIX:ARYN
Aryzta — Merger or Acquisition (March 2015)
19 slides from Aryzta's merger presentation, Mar 31, 2015
Slide 1: Strategic Investment in Picard
ARYZTA AG Strategic Investment in Picard 31 March 2015
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking
Slide 3: Investment Transaction
Investment Transaction – ARYZTA in exclusive negotiations to invest in Picard (www.picard.fr), acquiring a 49% stake from Lion Capital, subject to regulatory approvals – Picard to consult with its works council in connection with the investment – Picard Financials: > March Financial Year-end > Reven
Slide 4: Picard Overview
Picard Overview 4 © ARYZTA, March 2015
Slide 5: Picard at a Glance
Picard at a Glance – First store opened in Paris 40 years ago Picard network in France (928 stores – September 2014) #1 undisputed leader in frozen – Category captain with c.19% market share North 58 stores food retail in – Sales of €1.3bn in FY14, doubled over Corsica France the last decade Paris a
Slide 6: Picard's Broad Customer Proposition
Picard's Broad Customer Proposition From basic From From From everyday From French ingredients... breakfast.... appetizers.... cuisine..... cuisine..... ...to elaborate ....to dinner ....to desserts .....to festive ...to international prepared meals occasions1 cuisine 6 © ARYZTA, March 2015 1 Materi
Slide 7: Largest Offering in the Industry
Largest Offering in the Industry Some products offered through several 97% are Picard branded SKUs (e.g. same pizzas under national brands and private labels) 1,100 Seasonality of the offering 140 High number of ice cream SKUs 840 250 460 960 130 590 145 330 45 100 Picard Hypermarkets Supermarkets H
Slide 8: Four Different Types of Complementary Retail Formats
Four Different Types of Complementary Retail Formats 1 2 3 4 Pedestrian stores Urban stores Traffic area Hypermarkets Dense urban area, Customers are 70% Large shopping centers Located along regional customers come by f oot most of ten at the Description and live within a three to pedestrians and 30
Slide 9: Emerging Consumer Trends to Benefit Picard
Emerging Consumer Trends to Benefit Picard – Renowned market leader in speciality food innovation – Focused on the growth trends around Premium, Convenience, Indulgence and Health – On-trend solution for consumer > Always fresh from the freezer > Convenience in the kitchen > Clean label > Food waste
Slide 10: Strategic Rationale
Strategic Rationale – Diversifies ARYZTA's B2B profile into an adjacent B2C sector – Investment partner has a strong track record in the consumer brand space – Complements ARYZTA's 10-year track record in the French speciality food sector – Consistent with ARYZTA's strategy to be relevant to consume
Slide 11: Investment Strategy & Summary
Investment Strategy & Summary 11 © ARYZTA, March 2015
Slide 12: Investment Strategy
Investment Strategy – Picard investment and contribution will be treated as an associate – Net Underlying EPS benefit in a full-year will be +3%, offsetting half of the negative 6% impact of the Origin placement – Picard debt non-recourse to ARYZTA – Disciplined and low risk funding approach – Initi
Slide 13: Potential Picard and AFS Future Synergies
Potential Picard and AFS Future Synergies – ARYZTA reinvesting Origin placement proceeds in a low-risk premium food partnership – Replaces a highly predictable agri invesment with a highly predictable food investment – Consistent with ARYZTA's strategy to increase relevance to consumers – Provides a
Slide 14: Appendix
Appendix 1 14 © ARYZTA, March 2015
Slide 15: Clear Unchanged Bakery Strategy
Clear Unchanged Bakery Strategy – No distractions for bakery performance > A period of calm will allow the market to fully assess bakery sustainable underlying performance without disruptions > The weak underlying revenue growth in bakeries has been subject to criticism – Picard investment does not
Slide 16: Picard and AFS Synergies
Picard and AFS Synergies – Business model > Asset light > Speciality Food > Two complementary channels professional and consumer – Innovation > Similar R&D platforms > Revenue driven by new product innovation – Revenue > Potential to energise the entire Picard and AFS offering to both complementary
Slide 17: Picard Financial Performance
Picard Financial Performance – Picard has consistently grown revenue and EBITDA by c. 3% (5‐year CAGR) – Revenue growth driven by LfL sales (c. 1.2%) and new stores opening (c. 2%) – Picard has consistently grown market share by c. 2% (5‐year CAGR) 17 © ARYZTA, March 2015
Slide 18: ARYZTA to Maintain Investment Grade on Picard Consolidation
ARYZTA to Maintain Investment Grade on Picard Consolidation – Bakery Investment CapEx – €300m in FY 2015, €200m in FY 2016 – matching depreciation thereafter – Bakery free cash expansion (after investment CapEx) to accelerate to run rate of €450m after FY 2017 onwards – Delivering ARYZTA balance she
Slide 19: Thank you!
Thank you! 19 © ARYZTA, March 2015