Savencia SA · EURONEXT:SAVE
Savencia SA — Savencia Fromage & Dairy — FY2019 Earnings Presentation
88 slides from Savencia SA's earnings presentation, Mar 12, 2020
Slide 1: Financial Analysts' Meeting
Slide 2: gen
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Slide 3: Oxygen: four commitments
Healthy and Co-develop sustainable responsible pleasure agricultural practices Favor our employees’ Reduce our environmental wellbeing impact
Slide 4: Our employees' wellbeing and solidarity
Our employees’ wellbeing and solidarity
Slide 5: Environmental footprint
Environmental footprint
Slide 6: Sustainable agricultural practices
Sustainable agricultural practices
Slide 7: Healthy and responsible pleasure
Healthy and responsible pleasure
Slide 8: SAVENCIA Fromage & Dairy - March 2020
SAVENCIA Fromage & Dairy - March 2020 8
Slide 9: The dairy environment
Slide 10: The dairy environment in 2019
THE DAIRY ENVIRONMENT IN 2019 Stability of world milk production Sustained global trading in dairy products Rebalancing of the value of milk fat and protein In France: - Impact of the Egalim food law - Accentuation of milk differentiation SAVENCIA Fromage & Dairy - March 2020 10
Slide 11: Stable milk production worldwide
THE DAIRY ENVIRONMENT IN 2019 Stable milk production worldwide SAVENCIA Fromage & Dairy - March 2020 11
Slide 12: European milk collection
THE DAIRY ENVIRONMENT IN 2019 – EUROPEAN MILK COLLECTION European milk collection +0.5% SAVENCIA Fromage & Dairy - March 2020 12
Slide 13: Sustained international trading
THE DAIRY ENVIRONMENT IN 2019 Sustained international trading Butter + 6% + 50,000T Powdered skim milk + 6% + 134,000T Cheese + 4% + 84,000T Powdered whey - 7% - 98,000T SAVENCIA Fromage & Dairy - March 2020 13
Slide 14: Powdered skim milk
14 •December •November THE DAIRY ENVIRONMENT IN 2019 – POWDERED SKIM MILK •October -24% •September Rebalancing of the value of milk fat and protein •August •July •June •May •April •March •February •January •December •November +43% •October •September •August •July •June •May SAVENCIA Fromage & Dairy
Slide 15: Whey
15 •December •November THE DAIRY ENVIRONMENT IN 2019 – WHEY •October •September •August •July •June •May •April •March •February •January SAVENCIA Fromage & Dairy - March 2020
Slide 16: France's EGalim law
THE DAIRY ENVIRONMENT IN 2019 – FRANCE’S EGALIM LAW SAVENCIA Fromage & Dairy - March 2020 16
Slide 17: Change in the price of milk in France
THE DAIRY ENVIRONMENT IN 2019 – FRANCE Change in the price of milk (actual composition) 2018 & 2019 (all uses) (in € / 1,000 l) 369 € 370 € 365 € 360 € 355 € 344 € 350 € 345 € 340 € 335 € 330 € 2018 2019 SAVENCIA Fromage & Dairy - March 2020 17
Slide 18: The dairy environment in 2020
THE DAIRY ENVIRONMENT IN 2020 France: EGalim The challenge posed by distributor brands International The impacts of the Coronavirus SAVENCIA Fromage & Dairy - March 2020 18
Slide 19: gen
gen N Oxy ‘2 N 9 ca a “369 oD
Slide 20: Oxygen: major focuses for progress by 2025
OXYGEN: 4 MAJOR FOCUSES FOR PROGRESS BY 2025 Healthy and Sustainable agricultural responsible pleasure practices Our employees’ wellbeing Environmental footprint and solidarity
Slide 21: Sustainable agricultural practices
Sustainable agricultural practices
Slide 22: Sustainable milk production: typical dairy farm
THE DAIRY ENVIRONMENT IN 2019 – SUSTAINABLE MILK PRODUCTION Portrait of a typical dairy farm delivering to Savencia* *data from Sustainable Milk Production diagnoses SAVENCIA Fromage & Dairy - March 2020 22
Slide 23: Co-develop sustainable milk procurement
THE DAIRY ENVIRONMENT IN 2019 – SUSTAINABLE MILK PRODUCTION Co-develop more sustainable milk procurement Extend the charter of best farming practices SAVENCIA Fromage & Dairy - March 2020 23
Slide 24: Promote procurement creating value
THE DAIRY ENVIRONMENT IN 2019 – SUSTAINABLE MILK PRODUCTION Sustainably promote procurement creating value Develop four differentiated dairy segments SAVENCIA Fromage & Dairy - March 2020 24
Slide 25: Environmental footprint
Environmental footprint
Slide 26: Maintain local collection
THE DAIRY ENVIRONMENT IN 2019 – SUSTAINABLE MILK PRODUCTION Reduce our environmental footprint Maintain local collection In France, And even, 90% of our milk is collected 2/3 within 30 km within 70 km of our cheese of our cheese plants plants SAVENCIA Fromage & Dairy - March 2020 26
Slide 27: Contribute to carbon neutrality
THE DAIRY ENVIRONMENT IN 2019 – SUSTAINABLE MILK PRODUCTION Reduce our environmental footprint Contribute to carbon neutrality Tons of carbon equivalent saved (evolution vs 2010) 2018 -191,000 T eq.CO2 2019 -217,000 T eq. CO2 Objective -246,000 T eq.CO2 Reduce the carbon 2020 footprint of our milk c
Slide 28: Reduction in packaging
ENVIRONMENTAL FOOTPRINT: REDUCTION IN PACKAGING % of recyclable or biodegradable packaging ▪ Fol Epi: recyclable tray with 30% of recycled plastic 2019 80% ▪ Tartare portions: 50% of Objective 100% recycled plastic 2025 SAVENCIA Fromage & Dairy - March 2020 28
Slide 29: Other Dairy Products
Slide 30: Other dairy products: AFP (USA)
OTHER DAIRY PRODUCTS – AFP (USA) AFP has comforted its positions and enlarged its product solutions SAVENCIA Fromage & Dairy - March 2020 30
Slide 31: Ingredients and nutritional solutions
OTHER DAIRY PRODUCTS – INGREDIENTS AND NUTRITIONAL SOLUTIONS The market for protein has regained a certain balance SAVENCIA Fromage & Dairy - March 2020 31
Slide 32: Strong demand for nutritional solutions
OTHER DAIRY PRODUCTS – INGREDIENTS AND NUTRITIONAL SOLUTIONS Strong demand for nutritional solutions Ingredients and nutritional solutions 32
Slide 33: The crisis of January 2019
OTHER DAIRY PRODUCTS – INGREDIENTS AND NUTRITIONAL SOLUTIONS The crisis of January 2019 SAVENCIA Fromage & Dairy - March 2020 33
Slide 34: Other dairy products: butter and cream
OTHER DAIRY PRODUCTS – BUTTER AND CREAM SAVENCIA Fromage & Dairy - March 2020 34
Slide 35: Butter and cream: naturalness and origin
OTHER DAIRY PRODUCTS – BUTTER AND CREAM Naturalness and origin SAVENCIA Fromage & Dairy - March 2020 35
Slide 36: Food service
OTHER DAIRY PRODUCTS – FOOD SERVICE A recognized position in France and internationally SAVENCIA Fromage & Dairy - March 2020 36
Slide 37: Other dairy products: food service
OTHER DAIRY PRODUCTS – FOOD SERVICE SAVENCIA Fromage & Dairy - March 2020 37
Slide 38: Cheese Products
Slide 39: Global trends in consumption
GLOBAL TRENDS IN CONSUMPTION More natural More local More sustainable More flexitarian More delicious Up market SAVENCIA Fromage & Dairy - March 2020 39
Slide 40: Eating better thanks to labels?
EATING BETTER THANKS TO LABELS? The multiplication of logos and labels 40
Slide 41: Nutri-Score: its limits
NUTRI-SCORE: ITS LIMITS Does not give sufficient weight to positive nutrients and gives too much weight to 1 “empty” foodstuffs Does not take account of patterns of 2 consumption and portion size Does not take account of the degree of 3 processing of foodstuffs and encourages ultra-transformation LA
Slide 42: Our response
NOTRE RESPONSE SAVENCIA Fromage & Dairy - March 2020 42
Slide 43: #PositiveFood: Naturalness
#PositiveFood: NATURALNESS SAVENCIA Fromage & Dairy - March 2020 43
Slide 44: #PositiveFood: Flexitarian, the diet of the future
#PositiveFood: FLEXITARIAN, THE DIETOF THE FUTURE SAVENCIA Fromage & Dairy - March 2020 44
Slide 45: #PositiveFood: Cheese at the heart of the meal
#PositiveFood: CHEESE AT THE HEART OF THE MEAL As part of a salad Ripe mango Pomegranate seeds List of ingredients: Mesclun salad mix Conchiglie cuit 27% (eau, semoule de blé dur, œuf, sel, Chopped chives épices), œuf 17%, salade verte 14%, poulet rôti traité en Virgin sesame oil salaison 14% (viand
Slide 46: #PositiveFood: Cheese and vegetables
#PositiveFood: CHEESE AND VEGETABLES In partnership with our On our internet applis customers Hundreds of recipes… SAVENCIA Fromage & Dairy - March 2020 46
Slide 47: Cheese at the heart of the meal: hot dish
#PositiveFood: CHEESE AT THE HEART OF THE MEAL As a hot dish SAVENCIA Fromage & Dairy - March 2020 47
Slide 48: Cheese at the heart of the meal: hot dish
#PositiveFood: CHEESE AT THE HEART OF THE MEAL As a hot dish SAVENCIA Fromage & Dairy - March 2020 48
Slide 49: Cheese as a culinary aid
#PositiveFood: CHEESE AT THE HEART OF THE MEAL As a culinary aid SAVENCIA Fromage & Dairy - March 2020 49
Slide 50: #PositiveFood throughout the world: Romania
#PositiveFood: THROUGHOUT THE WORLD In Rumania SAVENCIA Fromage & Dairy - March 2020 50
Slide 51: #PositiveFood throughout the world: China
#PositiveFood: THROUGHOUT THE WORLD In China SAVENCIA Fromage & Dairy - March 2020 51
Slide 52: Cheese, healthy and glocal snacking
#PositiveFood: CHEESE, HEALTHY AND “GLOCAL” SNACKING SAVENCIA Fromage & Dairy - March 2020 52
Slide 53: Cheese, healthy snacking
#PositiveFood: CHEESE, HEALTHY SNACKING In the Czech Republic SAVENCIA Fromage & Dairy - March 2020 53
Slide 54: Cheese for dessert
#PositiveFood: CHEESE FOR DESSERT Czech Republic Japan SAVENCIA Fromage & Dairy - March 2020 54
Slide 55: Cheese, sustainably delicious
#PositiveFood: CHEESE, SUSTAINABLY DELICIOUS SAVENCIA Fromage & Dairy - March 2020 55
Slide 56: Cheese, sustainably delicious
#PositiveFood: CHEESE, SUSTAINABLY DELICIOUS SAVENCIA Fromage & Dairy - March 2020 56
Slide 57: Cheese, locally delicious: Germany
#PositiveFood: CHEESE, LOCALLY DELICIOUS Germany: GMO-free mountain milk SAVENCIA Fromage & Dairy - March 2020 57
Slide 58: Cheese, locally delicious
#PositiveFood: CHEESE, LOCALLY DELICIOUS SAVENCIA Fromage & Dairy - March 2020 58
Slide 59: Cheese, locally delicious
#PositiveFood: CHEESE, LOCALLY DELICIOUS
Slide 60: Cheese, locally delicious
#PositiveFood: CHEESE, LOCALLY DELICIOUS SAVENCIA Fromage & Dairy - March 2020 60
Slide 61: Cheese, locally delicious: Argentina
#PositiveFood: CHEESE, LOCALLY DELICIOUS Argentina SAVENCIA Fromage & Dairy - March 2020 61
Slide 62: Germany: Bresso herbs of Provence
#PositiveFood: CHEESE, LOCALLY DELICIOUS Germany: Bresso herbs of Provence SAVENCIA Fromage & Dairy - March 2020 62
Slide 63: Cheese, supremely delicious: USA
#PositiveFood: CHEESE, SUPREMELY DELICIOUS USA SAVENCIA Fromage & Dairy - March 2020 63
Slide 64: Cheese, winningly delicious
#PositiveFood: CHEESE, WINNINGLY DELICIOUS Rogue River Blue, an American world champion cheese! SAVENCIA Fromage & Dairy - March 2020 64
Slide 65: Cheese, immensely delicious: Great Britain
#PositiveFood: CHEESE, IMMENSELY DELICIOUS In Great Britain SAVENCIA Fromage & Dairy - March 2020 65
Slide 66: Conclusion
CONCLUSION Our #PositiveFood strategy aims to meet all the needs of the consumers of today: Naturalness Flexitarian Sustainable development Local anchorage Combating waste Despite a difficult environment, the strategy has enabled Savencia to pursue its growth SAVENCIA Fromage & Dairy - March 2020 66
Slide 67: Financial Statements for 2019
Slide 68: Key figures 2019
KEY FIGURES 2019 (in €M) Net sales Current operating profit 3.8% +3% 3.7% 4.863 5.007 192 178 +8% 2018 2019 2018 2019 Operating margin rate Net debt Group share of net income 1.8% 1.5% 1.8% 669 1.1% (605 ex-IFRS 16) 74 564 +34% 55 2018 2019 2018 2019 Leverage excluding IFRS 16 Net margin rate SAVENC
Slide 69: Net sales 2019
Net sales 2019 2.8% 0.4% €144m -0.3% 3% - €13m + €19m + €138m €4,863m €5,007m Forex Scope Organic growth 4 853 M€ 4 863 M€ 2018 2019 SAVENCIA Fromage & Dairy - March 2020 69
Slide 70: Quarterly net sales growth
Quarterly net sales growth TOTAL GROUP 2019 6,6% 4,7% 2,8% 5,2% 2,8% 2,8% 1,1% Q1 Q2 Q3 Q4 -2,4% Quarterly Cumulative Global growth fueled by: − The price impact of EGAlim and hyperinflation in Argentina − The volume-mix impact of more rapid market development outside France SAVENCIA Fromage & Dairy
Slide 71: Quarterly net sales growth: Cheese Products
Quarterly net sales growth CHEESE PRODUCTS 2019 3,4% 3,2% 2,9% 2018 0,5% 0,5% 5,4% 4,3% 2,6% Q1 Q2 Q3 Q4 Quarterly Cumulative Growth in strategic brands with: − A volume-mix impact of 2.3% − A price impact of 0.8% SAVENCIA Fromage & Dairy - March 2020 71
Slide 72: Quarterly net sales growth: Other Dairy Products
Quarterly net sales growth OTHER DAIRY PRODUCTS 2019 7,5% 6,1% 3,5% 2018 6,1% 8,9% 8,2% -0,4% 2 Q3 Q4 T4 -7,9% Quarterly Cumulative Growth fueled by: − The strong price impact of 3.7% SAVENCIA Fromage & Dairy - March 2020 72
Slide 73: Net sales
Net sales 2018 2019 +€50m 45,1% 44,8% -30 bpt +€116m +60 bpt 57,5% 58,1% -2,6% -2,9% Cheese Products Other Dairy Products Not allocated Excluding Forex, Other Dairy Products = 45.3% of consolidated net sales SAVENCIA Fromage & Dairy - March 2020 73
Slide 74: Net sales geographical breakdown
Net sales GEOGRAPHICAL BREAKDOWN (IN €M) 2018: €4,863m 2019: €5,007m + €144 m / 3% France -€29m 1 458 -2% 1 429 30.0% 28.5% Europe +€42m 1 956 +2% 1 998 40.2% 39,7% 39.9% International +€131m 1 449 +9% 1 580 29.8% 24,1% 31.6% 100% 100% By region SAVENCIA Fromage & Dairy - March 2020 74
Slide 75: Change in average exchange rates
Change in average exchange rates UAH EGP 10,0% USD JPY 10,5% CHF CHF RUB 5,2% 6,4% 3,7% GBP CNY PLN CZK 2,1% 0,8% HUF -0,1% CLP BRL 0,9% -2,0% -0,9% -4,0% UYU -2,5% -8,9% INR ARS -9.8% -56.0% Weakening of the AR$ partially offset by the USD SAVENCIA Fromage & Dairy - March 2020 75
Slide 76: Operating costs
Operating costs (-) = fall (in €m) 2018 2019 Favorable Unfavorable Purchases 3,190 3,238 Dairy raw materials Packaging and consumables Total change €48m 65.6% 64.7% 1.5 % Energy and transport Payroll costs 868 918 Inflation Recruitment Total change €50m 17.8% 18.3% 5.8 % Growth in sales Deprecia
Slide 77: Change in current operating profit
Change in current operating profit 2018: €177.6m + €14.5m 2019: €192.1m +8.2% 159,0 139,3 76,0 41,0 -22.4 -23,2 Produits Fromagers Autres Produits Laitiers Non affecté SAVENCIA Fromage & Dairy - March 2020 77
Slide 78: Current operating margin
Current operating margin 5,7% 4,8% 3,7% 3,8% 1,9% 3,4% 2018 2019 Total Savencia SA Produits Fromagers Autres Produits Laitiers SAVENCIA Fromage & Dairy - March 2020 78
Slide 79: Average employees
Average employees +0.7% 19 888 20 031 19 888 20 031 735 823 4 921 4 890 5 163 5 268 6 537 6 551 14 232 14 318 8 188 8 212 2018 2019 2018 2019 Cheese Products Other Dairy Products France Europe Other countries Not allocated - Acquisitions in 2018 (Bake Plus, Rogue), 2019 (Papillon) - Adaptation of st
Slide 80: Other operating income and expenses
Other operating income and expenses In €m 2018 2019 Reorganization -46.3 -23.7 Impairment of assets -6.0 -25.9 Disputes, losses etc. -9.4 -5.0 -61.7 -54.6 SAVENCIA Fromage & Dairy - March 2020 80
Slide 81: Net financial expense
Net financial expense In €m 2018 2019 Change Interest -8.5 -9.7 -1.2 (excluding interest rate hedging) Interest rate hedging 1.5 1.1 -0.4 Commissions -4.7 -4.6 0.1 Forex -3.7 -4.3 -0.6 Other items -3.0 -3.9 -0.9 Total -18.4 -21.4 -3.0 Of which: latent IFRS impact 1.8 0.0 -1.8 SAVENCIA Fromage & Dair
Slide 82: Result on monetary position
Result on monetary position In €m 2018 2019 B/S & income statement indexing -14.6 +2.5 -14.6 +2.5 Recognition from the second semester of 2018 of hyperinflation in Argentina (inflation > 100% in 3 years and no hope of short-term improvement) Adjustment without cash flow impact SAVENCIA Fromage & Dai
Slide 83: Taxes on income
Taxes on income 2018 2019 Tax charge (in €m) -28.4 -45.6 Effective tax rate 33.1% 37.8% SAVENCIA Fromage & Dairy - March 2020 83
Slide 84: Income statement
Income statement 2018 2019 % % In €m Actual net Actual net sales sales Net sales 4,863 5,007 Change N/N-1 +0.2% +3.0% Current operating profit 177.6 3.7 192.1 3.8 Change N/N-1 +2.9% +8.2% Other operating income and expenses -61.7 -1.3 -54.6 Operating profit 115.9 2.4 137.5 2.7 Change N/N-1 -24.4% +1
Slide 85: Statement of cash flows 2019
Statement of cash flows 2019 -€219m €250m Industrial investment -€30m Cash flows Change in net debt: Net acquisitions -€42m -€41m (excluding IFRS 16) Dividends etc. SAVENCIA Fromage & Dairy - March 2020 85
Slide 86: Balance sheet
B/S (€m) 2018: 3,659 2019: 3,925 41 30 283 290 163 564 165 669 1,555 1,708 1,396 1,464 Fixed assets Equity Financial assets Working capital Debt Other liabilities SAVENCIA Fromage & Dairy - March 2020 86
Slide 87: Share price in 2019
Share price in 2019 73 71 SAVENCIA CAC ALL TRADABLE ENFAM 69 67 65 63 61 59 57 55 janv.-19 févr.-19 mars-19 avr.-19 mai-19 juin-19 juil.-19 août-19 sept.-19 oct.-19 nov.-19 déc.-19 SAVENCIA Lowest 55.40 / Highest 69.40 Average 63.19 / Change at 12/31 +9.25% SAVENCIA Fromage & Dairy - March 2020 87
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Savencia Fromage & Dairy — FY2019 Earnings Presentation on 6ix