joining forces in the...

Joining Forces in the NordicsAn update from VikingGenetics

24.07.2018

NÖK Congress 2018, Rättvik, Sweden

CEO Rex A. Clausager, VikingGenetics

Why does VG exist?

Because of you!

Common Evaluation / Common breeding goal / NAV (based on NÖK discussions – common AI company incl. Norway)

Importance of population size / Share population

Sharing large future investments

Need for partners / fear that partners would merge with someone else

Cultural similarities / background: Nordic

Nordic countries all doing health traits

www.vikinggenetics.com

Who knows what is important?

Successes so far!

Top

Genetic

Progress

Speedy

implemen-

tation of

genomic

selection

Successful

merge of

breeds

across

countries

Working

across

borders

Sensible

price level

in the

market Obtained

synergies

Ability to

return

created

value to

farmer/

owners

Develop-

ment of

new traits

R&D in

common

Exports

would have

been

difficult

separately

VR has

been able to

reach global

position


EuroStat (October 2017)

5


What took us here

will not take us there!


Regional

National

Scandinavian

Bigger Global

Start with the Spirit

Slowly began to

spread their wings

Become famous

in the competition

New concepts and methods

implemented in the

company.

Becoming a true

global player

– commercial with coop

values

From local to global!


Guiding Stars

8

Superior genetics

at competitive price

Superior workplace

- One Team

Growth to remain big enough

to count and stay competitive

Commercial minded

- coop values

Being an attractive

international partner


Mindmapping our challenges

TECHNOLOGYDATA

COMPETENCES

COMPETITION

PROFITABILITY


Breeding…

1868 1895 1903 1936 1945 1972 1987 2007 2017

IT can’t

replace

the herd

visit


Total Homemarket (#doses)

2.496.128 2.376.406

2.183.991

1.990.401 1.873.271

1.709.356

111.295

140.907

149.236

157.478

147.983

184.190

74.956 98.889

197.622

273.482

337.680

377.473

-

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

2013 2013 2014 2015 2016 2017

Conv X-Vik Imported/Beef

-2%-3%

-4%-3%

-4%

-5%-8%

-9%-6%

-9%

2012


Calculated Market Share

12

0

10

20

30

40

50

60

70

80

90

100

2012 2013 2014 2015 2016 2017

Växa Faba VD

Changes in the competetivelandscape

Changes in the competetivelandscape

Strategy and/or necessity?

Are you buying or being

sold?


Impressions from the outsideworld!

15

Jaap Petraeus

(FrieslandCampina)

Anna-Karin Modin Edman

(Sustainability Manager, Arla Foods)


Oh yes, the world is changing!

16

1868 1895 1903 1936 1945 1972 1987 2007 2017


What is the future bringing?

17


An elite athlete knows the amount, weight and content of nutrient in each meal to be elite

We expect our cows to be eliteBUT we don’t know what a cow is eating

Background

Aim and purpose

To develop a 3D camera system that can measure feed intake at individual cow level at each visit

May not:

• Disturb daily routines on farm

• Disturb cow behavior

Should be same system as for identification

Cattle Feed Intake (CFIT)

System setup

System setup

22


Perspectives

Efficiency Health

GroupingBehaviour

24

RFID in insemination

straws

RFID – vision!

25

New standard for digitalization

Semen production and handling in Laboratory• Storage

• Accounting

• Traceability

Distribution of semen (Can also be with use of robotics)• Depots

• Technicians

• Farmers

• Export

A.I. Field work• Technicians

• Farmers

Competitor overview

2,7

19

18

17

12

10

5

4,5

4

3,3

3

1

Sales

M doses OwnershipNordic Europe S.

America

AUS &

NZ HO RDCJER Beef

% of sales

in home

market

63%

Company and

home market

20%

50%

35%

92%

Other

dairy

Cooperative ownership

Breed focusGeographical focus

200 + 93 2015

186

120 (4%)

150

168 (1%)

100

Revenue*

MEUR (Ebit %)

#N/A

#N/A

33%

N.

AmericaAsia

Owned by public company Genus PLC








Alta - Privately owned by holding

company. CRI - Cooperative

220 (10%)

#N/A

46 (1%)

#N/A

59%

30%

61%

49%

Xbreed


Private, limited liability company#N/A

75% *

139 (10%) Cooperative ownership70%

3,2

Two ears – one mouth!

Dialogue/Discussion

Group Work

Networking

Socializing

Increased

presence in UK

Reaching the sales target of 2.5 doses/14 MEUR

Increased

presence in

Australia

Increased presence in USA

5.9

~3.3-5.8

~0.3~1-3.5

~13.7-16.2

Revenue

2018 -

USA,

AUS, UK

0.7

Revenu

e 2018 -

USA,

AUS

~2

Revenu

e 2015

5.9

~1.5 ~2.2

5.9

~3.3-5.8

~2.3~0.3

~2

Revenue

2018 -

USA

5.9

~2.3

~3.3-5.8

~9.2-11.7

~11.5-14

Estimated revenue development for VG, 2016-2018

MEUR

Market

leader in

Crossb.

Seven projects have to be exploited and implemented to secure the sales target of 14 millions to be reached -

a growth in underlying export markets might or might not happen why it is important to initiated and

accomplish the seven projects

# million doses

1 ~0.2 ~0.15-

0.8

~0.1 ~0.2 ~0.05 ~0.1 ~1.9-

2.55

Get 10%

of VJ

market

VH

natural

choice in

PC~1.45-

2.1

Get 10%

of AU

market

Expand

to NZ

~1.7-

2.35

Increase

market share

in VJ and VH

Get 25%

of crossbree-

ding market

~0.1

Farmer segments

Farming is a way of life

Farm and Family life closely linked

Farming as joy

Farming NOT a main source of

income

Love for farming

Need to makemoney

Enjoy life

Focus on family success and

income

Enjoy farming lifestyle

Value familylegacy

Focus on growth

Farming is a burden and a

struggle

Pessimistic

Heavy business focus and profit-

driven

Focus on growthand reachingfinancial goals

EMOTIONAL RATIONAL / HARD

FACTS

Custodians Lifestylers PragmatistsModern

Family

Business

Challenged

EnterpriseCorporate

farm

Social Media Activities

VikingDefenceTM

Customized rankingrank.vikinggenetics.com

Updated VikMatevikmate.vikinggenetics.com

New ”daughter” – VG UK

The French Connection

Jersey program based on joint population

• Base is VJ breeding program and Nordic Jersey reference

• VG has ownership to all bulls

• VG responsible for all costs in relation to breeding program and evaluations

• Evolution has access to all VG Jersey bulls and will be considered VJ home

market

• Evolution can buy doses to present VG home market prices

Mindmapping our challenges

INNOVATION GROWTH

LEADERSHIP

DIGITALIZATION

SUSTAINABILITY

VALUE CREATION

Stronger together


Thank you for your attention!

43

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