financial year 2011 results presentation · (total savings in 2011: chf 15 million) strategy on...

Financial Year 2011Results Presentation

Media and analysts' conference

Lucerne, 29 March 2012

Welcome addressKonrad Graber, Chairman of the Board of Directors

Market situation and outlookUrs Riedener, CEO

Most important success factorsUrs Riedener, CEO

Annual results 2011Reto Conrad, CFO

Overview of the financial year 2011Urs Riedener, CEO

Financial Year 2011, Results Presentation, 29 March 2012

§ Net sales of CHF 2,721 million 1.4% increase

§ EBIT of CHF 130.3 million4.0% decrease> EBIT margin 4.8% (2010: 5.1%)

§ Net profit of CHF 83.0 million 3.7% decrease> Net profit margin of 3.0% (2010: 3.2%)

Highlights of 2011

Slight increase in sales – profitability virtually maintained


Switzerland§ Slight decline due to elimination of unprofitable

business> Sales of CHF 1,909.9 million, -2.2%> Retail business, the core area, remained stable

International§ Significant growth despite strong Swiss franc

> Sales of CHF 811.4 million, +10.9%> +21.3% in local currency

Pleasing sales despite import pressure and strong Swiss franc

International business at the upper range of expectations


§ Focus on selected market concepts and markets with potential

§ Powerful innovations in Switzerland: Mozzarella Mini Marinati, Milk Shake, Yogurt Milk

§ Successful local products abroad: Onken, Trentina, Cypress Grove Chèvre, Emmi Roth USA

§ Acquisitions with further potential: Onken, A-27, Rutz Käse

§ Elimination of unprofitable business outside the core area

§ Systematic cost management along with additional, exceptional savings (total savings in 2011: CHF 15 million)

Strategy on course

Strengthening of key markets, investments in productivity


Amounts in CHF million 2011 2010 2009 2008 2007Net sales 2 721 2 684 2 619 2 671 2 501Earnings before interest, taxes, depreciation and amortization (EBITDA) as % of net sales

239.3

8.8

233.6

8.7

208.3

8.0

184.4

6.8

140.1

5.6

Earnings before interest and taxes (EBIT)as % of net sales

130.34.8

135.85.1

109.04.2

102.13.8

62.32.5

Net profitas % of net sales

83.03.0

86.13.2

75.32.9

58.72.2

41.31.6

Headcount (FTEs) 3890 3 701 3 525 3 373 3 350Volume of milk and cream processed in millions of kg

1 017 992 943 948 901

Facts and figures for financial year 2011

Sales and income exceed expectations


%

5.6

6.8

8.08.7 8.8

2.5

3.84.2

5.1 4.8

1.62.2

2.9 3.2 3.0

0

1

2

3

4

5

6

7

8

9

2007 2008 2009 2010 2011

EBITA margin EBIT margin Net profit ratio

5-year trend in profits

Operating and net profit ratios almost doubled, steady increase of EBITDA


Acq.: effects due to acquisitions; FX: foreign currency effects; Volume: volume effects; Price: price effects

Sales trends 2011 – Group

Organic decline 1.9%

2683.7 2721.3

+6.1% -2.8% -2.5% +0.6%

2010 Acq. FX Volume Price 2011

organic -1.9%


Acq.: effects due to acquisitions; FX: foreign currency effects; Vol.: volume effects; Price: price effects

Sales – Switzerland Sales – internationalin CHF million in CHF million

2.2% decrease:- Favourable development of proven brand concepts - Successful launch of new products- Stable position in the retail business- Elimination of unprofitable business (logistics)- Pressure due to imports, especially on low-margin business

10.9% growth:- Growth at upper end of expectations- Emmi Caffè Latte maintains its position abroad- Local production supports growth- Recent acquisitions developing nicely

Sales trends 2011 – in Switzerland and abroad

Stable domestic core business, intl. growth despite strong Swiss franc

1951.9 1909.9

+1.5% -3.7% -

2010 Acq. Vol. Price 2011

organic -3.7%

731.8 811.4

+18.1% -10.4%+0.9% +2.3%

2010 Acq. FX Vol. Price

organic +3.2%


Sales of cheese Sales of fresh products Sales of dairy productsin CHF million in CHF million in CHF million

2.1% decrease:- Good development with Raclette- Growth in sales due to Fromalp

(acquired in July 2010)- Lower prices for Emmentaler- Declines in generic volumes and trading

0.3% growth:- Growth of Caffè Latte- Successful launch of Milk Shake- Stable trend with Energy Milk- Declines with private labels

1.2% decrease:- Positive influence through

increasing milk prices in 1HY- Slightly lower volumes

Acq.: acquisition effects; Vol.: volume effects; Price: price effects

Sales trends – Switzerland

Good performance of brand concepts, increasing import pressure

546.0 534.8

+5.1% -5.7% -1.5%


organic -7.2%

717.2 708.4

+0.3% -2.8% +1.3%


organic -1.5%

369.6 370.5

- -0.8% +1.1%


organic +0.3%


Sales of fresh products Sales of fresh cheese Sales of cheesein CHF million in CHF million in CHF million

5.3% decrease:- Double-digit growth of

local production at Emmi Roth USAand Cypress Grove Chèvre

- Declines in exports from Switzerland, lower prices for Emmentaler

31.7% growth:- Good collaboration with

Venchiaredo in Italy- Expansion of the Trentina brand

(Stracchino and Mozzarella)

Acq.: effects due to acquisitions; FX: foreign currency effects; Vol.: volume effects; Price: price effects

41.3% growth:- Double-digit growth at Onken in the UK- Good growth with Caffè Latte,

especially in the UK, Benelux and Spain - Declines in yoghurt exports

Sales trends – international

Caffè Latte and local production abroad drive success

191.5270.5

+54.2%

-9.1% -4.8% +1.0%

2010 Acq. FX Vol. Price 2011

organic-3.8%

33.243.7

- -15.0%

+38.7% +8.0%


411.6 389.8

+6.6% -11.3%-3.6% +3.0%


organic +46.7%

organic-0.6%


0

20

40

60

80

100

120

140

160

180

2009 2010 2011

Exchange-rate driven loss in sales since 2008

Loss in sales of CHF 180 million in 3 years

CHF million

§ With a stable exchange rate since the beginning of 2009, international sales would have been more than 20% higher!


9.8.

Acquisition of Onken

Impairments in goodwill,tangible assets

Sale of a property in Thun

3.1. 1.7.30.6.

Refinancing

Acquisition Rutz Käse Group

EUR/CHF parity (1.01)

An overview of the financial year

1.8.

SNB intervention (EUR/CHF 1.20)

1.12.15.9.

6.9.

Acquisition A-27 Group

Further development in a turbulent environment


Currency- and competition-relatedpressure on gross profit margin wascompensated by:

§ Price increases abroad

§ Elimination of unprofitable business

§ Improved product mix (e.g. impact of recently acquired businesses)

§ Productivity gains in production facilities

+1.6892.5

33.3

907.1

33.3

Gross operating profitas % of net sales

+1.42 683.72 721.3Net sales∆ in %20102011in CHF million

Net sales to gross profit

Increase in gross profit thanks to the optimized product portfolio


-4.0135.85.1

130.34.8

EBITas % of net sales

-51.61.40.7Release of badwill

+10.499.2109.6Depreciation and amortization

+2.4233.68.7

239.38.8

EBITDAas % of net sales

+3.3662.924.7

684.525.1

Total operating expensesas % of net sales

+1.6892.5

33.3

907.1

33.3

Gross operating profitas % of net sales

+1.42 683.72 721.3Net sales∆ in %20102011in CHF million § Disproportionate increase in

operating expense (+3.3%), primarily due to acquisitions

§ Profit from sale of properties, particularly in Thun

§ Increase in depreciation, among others through complete write-off of goodwill at Trentinalatte (CHF 10.2 million)

§ Slight decrease in EBIT margin of 5.1% to 4.8%

Gross profit to EBIT

Second-best EBIT in Emmi's history

+516.93.115.9Profit from sale oftangible assets


135.8130.3

-10.4 -0.7-9.1-12.6+14.5

Gross profit PersonnelOther

Operating expenseWrite-back Negative goodwill

Depreciation/amortization

Grossprofit

Personnelexpense

Other operating expense

Release ofbadwill

Depreciation/amortization

Factors driving EBIT

Increase in costs due primarily to acquisitions

2010 2011

InCHF mio.

+12.8

Profit fromsale of fixed assets


Targeted use of resources optimizes costs

in CHF million 2011 2010∆ in

%Personnel expensesas % of net sales

344.812.7

332.212.4

+3.8

Advertising and marketing expensesas % of net sales

105.2

3.9

107.6

4.0

-2.2

Occupancy expenses, maintenance, leasing

65.0 66.9 -2.8

Energy, operating material and supplies

52.4 49.7 +5.4

Logistics expenses 66.6 59.6 +11.8Other operating expenses 50.5 46.9 +7.6Total operating expensesas % of net sales

684.5

25.1

662.9

24.7

+3.3

§ Increase in personnel expenses of 3.8% due to acquisitions

§ Decrease in marketing expenses of 2.2% due to increased focus in the international business

§ Occupancy expenses, maintenance: savings through operational excellence

§ Energy: higher prices

§ Logistics: increase due to acquisitions

Systematic cost management


Exceptional income and expenses 2011

Exceptional influences in 2011 balance each other out

in CHF million 2011 2010 ∆ in % EBIT, as published 130.3 135.8 -4.0Profit from sale of tangible assets

-15.9 -3.1

Impairments 15.8 11.0Sustainable EBIT 130.2 143.7 -9.3

Gain on the disposal of fixed assets

§ Sale of property in Thun CHF 15.5 million

Impairments

§ Trentinalatte CHF 10.2 million- Outlook is negative for

private labels, but good for the Trentina brand

§ Tangible assets, frozen storage in Ostermundigen CHF 2.3 million- Relocation of frozen storage,

conversion of infrastructureto chilled storage


Net profit margin makes it over the 3% barrier

-0.5916.1015.51Profit per share in CHF

-3.186.13.2

83.03.0

Net profitas % of net sales

-2.018.420.4Minority interests

-7.815.813.1

23.618.6

Income taxesAverage tax rate in %

+6.7120.3127.0Earnings before taxes (EBT)

+11.2-18.2-7.0Financial result

+1.02.73.7Income from associated companies

-5.5135.8130.3EBIT∆ 20102011in CHF million § Improved FX result thanks to

prudent hedging strategy and good FX trend in Q4

§ Higher tax expense due to - increasing proportion of

international business- exceptional value adjustment

of deferred tax credit

§ Profit per share CHF 15.51 (previous year, CHF 16.10)

EBIT to net profit


§ Positive currency result thanks to effective hedging measures and positive currency trend in Q4

§ Interest result: Increase in interest expense due to additional liabilities taken on for acquisitions

in CHF million 2011 2010 ∆ Currency result 1.7 -17.1 +18.8Interest result -7.7 -4.2 -3.5Other financial result -1.0 +3.1 -4.1Total financial result -7.0 -18.2 +11.2

Financial result

Significantly improved financial result

-

50

100

150

200

250

2012 2013 2014 2015 2016 2017 2018

in m

io. C

HF

used credits/limits free limits

Maturity of used and not used credits/credit lines

Maturity of credits/credit lines



in CHF million 2011 2010 ⊗ Operating cash flow 218.3 222.4 -4.1Change in net current assets -42.1 -15.8 -26.3Other -25.8 -30.2 +4.4Cash flow from operating activities 150.4 176.4 -26.0Investments in tangible assets -94.8 -105.0 +10.2Investments in intangible assets -3.2 -2.0 -1.2Other investments -171.1 -44.1 -127.0Cash flow from investing activities -269.1 -151.1 -118.0Cash flow from financing activities 101.3 -1.8 +103.1Effects of currency translation -2.1 -8.5 +6.4Net change in cash and cash equivalents -19.5 15.0 +34.5

Cash flow (1/2)

Operating cash flow continues to be strong


§ Expansion of milk processing and process optimization of UHT production in SuhrTotal CHF 11.2 million, 2011 CHF 8.0 million (remainder in 2012)

§ Expansion of cheese curing cellar in SaignelégierTotal CHF 8.4 million, 2011 CHF 2.7 million (remainder in 2012)

§ Expansion of processed cheese production in LangnauTotal CHF 6.0 million, 2011 CHF 2.3 million (remainder in 2012)

§ Merging of distribution centre in SchlierenTotal CHF 4.7 million (completed)

§ Expansion of yoghurt production in the USATotal CHF 2.3 million (completed)

Cash flow (2/2)

Largest investment projects


306 287

181 192

342

2.19

1.56

0.87 0.82

1.43

0

1

2

3

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011

Net Debt Net Debt / EBITDA Ratio

in CHF million Factor

Limit of net debt

§ Issue of a bond due to advantageous conditions- the result is higher

net financial liabilities

§ As before, net debt/EBITDA ratio is considerably lower than the established limits

§ Continued large financial potential for future investments

Key figures for 2011 (1/4)

Net debt/EBITDA


1635 1683 16551729

1949

47.9 49.655.3 56.5

52.4

0

10

20

30

40

50

60

70

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2007 2008 2009 2010 2011

Balance sheet total Equity ratio

in CHF million in %

Target equity ratio in %

§ Equity ratio remains clearly above targets

§ Equity basis for additional financing remains very stable


Equity ratio


10161107 1114

11121267

5.8

7.68.4

9.88.8

0

2

4

6

8

10

0

200

400

600

800

1000

1200

2007 2008 2009 2010 2011

Invested capital ROI

in CHF million in %

§ Decrease in ROI to 8.8%

§ Investments made in the second half did not yet fully impact the income in full-year 2011

§ Impact of slight decrease in earnings


Return on invested capital (ROI)


§ The Board of Directors proposes to the General Meeting a constant dividend of CHF 3.40

§ The BoD expects a future distribution rate of 20 - 25%

7.52

10.98

14.0816.10 15.51

2.60 2.60 3.00 3.40 3.40

34.6

23.721.3 21.1 21.9

0

5

10

15

20

25

30

35

40

0.00

3.00

6.00

9.00

12.00

15.00

18.00

2007 2008 2009 2010 2011

EPS Dividend Distribution rate

in CHF in %


Constant dividend



Most important success factors Urs Riedener, CEO




The strategic pillars at Emmi

Defend our domestic position

International growth

Cost management

Emmi strengthens its international footprint and constantly improves its competitiveness

Financial year 2011, Results Presentation, 29 March 2012

Trend analysis as the basis for innovation

§ Taste

§ Health

§ Convenience

§ Sustainability

Lactose-free "All Natural" Toni

Key trends for Emmi in the food sector


Innovation at Emmi: Milk Shake

Sampling

Posters / Print Media

Sponsorship

TV

2nd POS

Internet / Social Media

Promotions

Trade Fairs / Tasting

PoP activation

Cross-communication with UHT Milk

Successful launch in the spring of 2011 Defence of position within Switzerland


Innovation at Emmi: Mini Marinati mozzarella

Print

Mozzarella Mini Marinati

Internet / Social Media

Promotions

Trade Fairs / Tasting

Cross-communicationwith milk

PoP activation

Mozzarella speciality off to a good start Defence of position within Switzerland


0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010 2011

CH Export

Million cups

Volume delivered from our plants

+3%

+7%

Key products:Emmi Caffè Latte breaks the 90-million-cup barrier

Positive development since product launchDefence within SwitzerlandInternational growth


* Growth in volume ** For Emmi, measured in terms of volume

Healthy growth across the board

Emmi Caffè Latte: Most important markets

Growth 2010 -> 2011* Size of market**

Switzerland + 7% No. 1

Germany - 21% No. 2 (de-listings due to price increases)

Austria + 11% No. 3

Spain + 76% No. 4

UK + 49% No. 5

Belgium + 47% No. 6

Defence within SwitzerlandInternational growth


80

90

100

110

120

130

140

150

160

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

Index

+6%

+19%

Key products:Strong growth in US specialities market: Cow's milk cheese

Local growth of Emmi Roth USA: Steady increase each year since takeover

+20%

+6%


Takeover took place in January 2009.

§ Double-digit growth in salesand single-digit growth in volume in 2011§ Local production reaches

limits of capacity


80

90

100

110

120

130

140

2008 2009 2010 2011Indexed sales

Index

+7%

+13%

Key products:Strong growth in US specialities market: Goat's milk cheese

Cypress Grove Chèvre: Leader position and growth above the market average

+17%


Takeover took place in August 2010.

§ Capacity set to increase massively in 2012 thanks to additional production infrastructure.


80

90

100

110

120

130

140

2009 2010 2011

Indexed yoghurt sales

Index

+16%

+7%

Key products:Re-positioning of Trentina bearing fruit

Sharpened brand positioning International growth

§ 2008: Launch of the brand Trentinalatte

§ 2011: Re-positioning with changeto "Trentina"

Das Bild kann zurzeit nicht angezeigt werden.

Achievements in 2011 Activities for 2012

Results 2011: Double-digit growth in volume and sales-> above market average-> 90% prompted brand awareness

Future potential: At least high single-digit growth

§ Intregration completed§ New marketing team set up§ Various promotion activities with trade§ New limited edition “Sicilian Lemon”

on sale since August

§ Removal of Dr. Oetker branding from all pots from August

§ TV sponsorship “Let’s do lunch” on ITV1 August / September

§ Sharpened brand positioning (Honest Tasty Pleasure)

§ New packaging by May

§ Extensive marketing campaign starting in June (Print, TV, social media)

§ New products: two limited editions,additional product range

§ Clear channel strategy

Successful acquisition:Onken in UK

No. 1 within branded big-pot yogurts in the UK

Acquisition as per 3. January 2011



Das Bild kann zurzeit nicht angezeigt werden.

Successful acquisition:Bontà Divina dessert specialties

A-27 SpA offers new business opportunities

Achievements in 2011 Activities for 2012§ Assessment synergies in Benelux & UK§ Re-definition of marketing mix§ Redesign of packaging§ Development of new products in the

top-range Bontà Divina Delizia§ Evaluation of synergies in further

markets

§ Financial integration into Emmi’s books§ Definition of synergy potential in

Emmi's key markets§ Merging of sales organizations

1st priority: Germany starting Jan 1, 2012§ Definition of investment case for

2012 and 2013

Results 2011: Single-digit growthPotential going forward: High single-digit growth

Acquisition as per 1. August 2011




§ "Operational excellence" initiatives at all major locations; focus on process optimization§ Replacement investments bring about increase in

efficiency§ Insourcing of logistics services for own company§ Abandonment of unprofitable services outside of

core business§ Cheap procurement of non-dairy raw materials in

the EU (through pooling and advantageous exchange rates)§ Concentration of marketing resources on brands

and markets with potential

Cost savings:Savings of CHF 15 million in 2011

HighlightsCost management


§ Plant and process optimization

§ Improvements in production planning

§ Reduction in number of malfunctions and down-time

§ Optimization of warehouse management

§ Increase in transport volumes per single journey

Cost management

Cost savings:Idea management, a mainstay of our efficiency drive

Emmi's "idea management" initiative has implemented 330 suggestions submitted by staff:

Employees have a key role to play

Placing the scales60 metres closer

to the production facilities =a saving of 4 minutes

If our tools are always on hand, we don't have to spend as much time looking for them





Overview of financial year 2011Urs Riedener, CEO


International Switzerland

CHF millions

1133 1479

256

414 447

587

18261465 1583

444

509

0

500

1,000

1,500

2,000

2,500

2002 2003 2004 2005 2006 2007

1389

1879 1926 2027

23352501

2008

3,000

1914

2671 2619

626

2045

2009

675

1944

50%

50%

In 3-5 years

732

1952

2684

2010

Sales 2002 – 2011 and the medium-term goal

Steady growth with medium-term 50/50 ratio Switzerland and international

2721

811

19091910

2011


Investment: a prerequisite for further growth

Focus on creating extra productive capacity

SwitzerlandKaltbach: New facilities for producing goat's milk fresh cheese CHF 4.5 million

Saignelégier: Extra capacity for thecuring of Tête de Moine cheese CHF 8 million

InternationalUSA/Monroe: Extra capacity for cow's milk speciality cheese CHF 40 million*

USA/Arcata: Extra capacity for goat's milk cheese CHF 6 million

Italy: Doubling of productive capacity at A-27 CHF 15 million*

*Investment in 2012/2013

0

50

100

2007 2008 2009 2010 2011

Locally produced Exported from Switzerland


Major acquisitions

2006: Trentinalatteyoghurt, fresh cheese (Italy)

2009: Roth Käse (USA)

2010: Cypress Grove Chèvre (US)Fromalp, cheese (CH)

2011: Onken, yoghurt (Germany)A-27, desserts (Italy)Rutz Käse (CH)

76%

24%

67%

33%

53%

47%

64%

36%

75%

25%

Percent

Percentage shares of export business out of Switzerlandand business produced locally abroad 2007 – 2011

Higher increase in share of locally produced business


Stimulating

§ Acquisitions (Rutz)

§ Optimization and expansion of brand portfolio

§ Product innovation

§ Organic growth (Caffè Latte, Onken, Trentina, Roth and Cypress Grove Chèvre)

§ Growth through acquisitions(A-27, first half of year)

§ Stable consumer sentiment in USA, Germany and UK

Limiting§ Abandonment of unprofitable positions

(generic products, industry and logistics)§ Price pressure in retail § Import pressure, retail tourism

§ Cautious consumer sentiment inSouthern Europe

§ Abandonment of unprofitable positions(primarily processed cheese)

§ New approach to logisticsmanagement in Austria

Switzerland

International

Environment in Switzerland and internationally

Factors affecting sales

Figures assume constant exchange rates and raw milk prices, and a stable economy


§ Increase investments in brand concepts (Caffè Latte, Emmi Umbrella Brand)

§ Targeted innovation within existing brand concepts

§ Optimization of successful sponsoring (skiing, open-airs)

§ Operating expenses: further savings of at least CHF 5 million

Measures for Switzerland in 2012

Press ahead with successful brand concepts


Cheese§ Exploit market potential in the US§ Growth in fondue in Benelux§ Exploit positive development of Kaltbach cheese in

Germany

Caffè Latte§ Investment in Germany, the biggest foreign market of

Caffè Latte§ Expansion in Spain, Benelux and UK

Local brands§ Relaunch and strengthen the Onken brand in the UK § Boost A-27 sales in various markets

Evaluate opportunities in new markets

Measures for the international market in 2012

Continued targeted strengthening of key markets


Growth incl. acquisitions, profit

§ Group sales 2% to 3%

§ Sales Switzerland -2% to -1%

§ International sales 10% to 15%

§ EBIT, CHF 125 to 140 million

§ Net profit margin around 3%

(Figures assume constant exchange rates and raw milk prices; they include known acquisitions but exclude extraordinary factors)

Outlook for 2012 as a whole

2% to 3% Group growth, profit along the lines of the previous year


(Figures assume constant exchange rates and raw milk prices; organic)

Growth without acquisitions, profit

§ Group sales 2% to 3%

§ Sales Switzerland stable

§ International sales 6% to 8%

§ Net profit margin 2.5% to 3.5%

Medium-term objectives

2% to 3% organic growth per year at Group level

AppendixAdditional information


Direct suppliers and others

Central SwitzerlandMilk ProducersZMP

Milchverbandbeider Basel MIBA

Nordostmilch

30%

Milk suppliers in Switzerland in 2011

842 878 834 873 896

29 38 38 40 40

0

200

400

600

800

1000

2007 2008 2009 2010 2011

Milk Cream

Switzerlandin kg millions

Milk and cream processing by Emmi

Volume of milk and cream processed by Emmi in Switzerland

Emmi processes over 900 million kg

Image shaped through innovative brand concepts

The culture to support innovations

2003

Benecol

2005 2007

Minicol

Choco Latte

Swiss Müesli

Luzerner Yogodu

Kaltbach Le Gruyère

MC Neil Benecol Drink

Emmi Caffè Latte Lassi

2004 2006

Création Yoghurt

Kaltbach Raclette

SwissAlp Käse

Winzer

2008

Gala Mousse

Emminent

2009

Emmi Caffè Latte Zero

Energy Milk

Mozzarella

Luzerner Scheiben

Tigre

Yogi Drink

2010

KaltbachExtra

Emmi CaffèLatte Intenso

2011

Milk Shake

Mini Marinati

Yogurt Milk

Kaltbach Fondue

Fondue withoutalcohol


Possible routes for acquisitions

Brand Jewel

Stra

tegi

c/In

tern

atio

nal

Tact

ical

/Sw

iss

Possible

CH

F1’

000

mio

. C

HF

50 M

io.

TechnologyLeader / Added

Value PL

no

Possible

Market Synergies/Efficiency

Rutz Käse

Roth Cheese/Fromalp

Organic

Biedermann

Possible

Regional /competion of product range

Molkerei Basel

Onken

Bontà Divina

CypressGrove

Focus on existing Emmi international key markets


Milk price developments in Switzerland and the EU [Price/kg milk]

25

30

35

40

45

50

55

60

65

70

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSources: Federal Office for Agriculture (FOAG), EU, SNB

EU 2011: Ø 43.4 centimes EU 2010: Ø 43.5 centimes

CH 2010: Ø 61.8 centimes CH 2011: Ø 62.7 centimes

EU 2011: Ø 34.7 eurocents EU 2010: Ø 30.8 eurocents

Milk-price developments in 2011

Difference CH – EU has expanded due to currency situation


Dairy products26.9%

(CHF 733 million)

Other products/services5.8%

(CHF 158 million)

Powder/concentrates3.3%

(CHF 89 million) Cheese34.0%

(CHF 925 million)Fresh cheese

6.4%(CHF 175 million)

Fresh products23.6%

(CHF 641 million)

Total net sales 2011: CHF 2,721 million

Product groups (net sales 2011)

Broad-based product portfolio



Reinforcing our brand concepts

Emmi house of brands

One Word EquityEmmi

Product brands

One Word EquityBrands

Emmi positionStatement Real Swiss

premium delight

Original Well-beingInspirationRefinement

TasteCH & local

jewelsDesserts*

* Bontà Divina desserts are produced in Italy by A-27 S.p.A.


International base

60

Expansion through subsidiaries and cooperations

Canada

France SwitzerlandSpain

UK

Germany

Austria

Benelux

43% Kaiku

ItalyRovere della Luna

USA, Monroe, WIEmmi Roth Inc.

Penn Yan, NYCASP

USA, Arcata, CACypress Grove Ch.

ItalyRancio Valcuvia


Key production sites in Switzerland

Sustainable improvement in productivity and efficiency

Emmen Kirchberg (Berne)

Landquart Ostermundigen

Langnau

Dagmersellen

Kirchberg

Suhr Kaltbach

1. HY 2. HY

ø 1.HY2011

ø 1.HY2010

ø 2.HY2010- 17,63 centimes- 16.28 %

ø 2.HY2011

- 13,55 centimes- 13.50 %

Quelle: OANDA

Development of US Dollar

Forex situation extremely challenging in 2011


1. HY 2. HY

ø 1.HY2011

ø 1.HY2010

ø 2.HY2010- 16,85 centimes- 11.71 %

ø 2.HY2011

- 13,22 centimes- 9.95 %

Quelle: OANDA

Development of Euro

Forex situation extremely challenging in 2011



2005 2007

Dagmersellen production facility:Switchover of various systems from heating oil to natural gas / biogas

Dagmersellen production facility: Use of lukewarm water to cool air compressors => reduction in the consumption of groundwater

Landquart production facility: Milk cream now cooled using cold milk

2006 2010

Logistics: ongoing adapt. of delivery schedules and modernisation of vehicle fleetsStart of cooperation with the "Abfallbörse„(waste exchange project)

Berne production facility: Heat generation from waste water

Molkerei Biedermann: Solar power thanks to photovoltaic facility

Emmen production facility: Newwoodchip-fired steam plant

2009

Landquart production facility: heat recovery using compressed air

Berne production facility: heat recovery from waste gas, Energieverbund Mösli

2008

Fromco Moudon:Heat generation using newcool air compressors

Emmen production facility: Heat generation using ventilation energy

Sustainability is part of our company policy

Key environmental measures 2005 to 2011

2011

LESA Bever: Solar energy facility for process water

Ongoing energy optimization initiatives at our six biggest locations

86% of our heavy-load trucks have the lowest level of emmissions (EURO 5)


WaterWaste to incineration plantElectricity

Dotted line = product sales as a benchmark

Current sustainability report from Emmi

Environmental index Emmi Group 2008 - 2011

Above-average decline in emissionsIndex

2008 2009 2010 2011

100

90

80

88.0

89.9 92.3

96.997.1

94.8

98.698.9100.5

93.8

76.7

95.9

financial year 2011 results presentation · (total savings in 2011: chf 15 million) strategy on...

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