world leader in processed vegetables - tradinfo · world leader in processed vegetables march 2011...

1

WORLD LEADERin processed vegetables

March 2011

History and strategy

Policy and organisation

2010/2011 1ST Half-Year Results

Projects

Prospects

2


HISTORY

1850 1900 1926 1955 1980 1995 2009

6TH GENERATION OF BONDUELLE FAMILYINVOLVED IN AGRICULTURE PROCESSING

Yeast

Sugar

Canned foods

Agriculture

Distillery

Frozen

FreshProcessed


From a regional French distillery in 1853...

... to the world leader in processed vegetables

3

STRATEGY History and strategy

BONDUELLE: VEGETABLES, ALL THE VEGETABLES AND NOTHING BUT THE VEGETABLES

The obesity pandemicAn obvious driver for vegetables consumption

Source: Food for Thought 2010 (market 2009)

Eastern Europe

North America

Western Europe

7.59470Market

(in billions of euros)

5.2%10.9%6.3%% of vegetablesin a food consumption

80207172€ per inhabitant


VEGETABLES: A HUGE MARKET

STRATEGY

Bonduelle: vegetables, all the vegetables and nothing but the vegetables

4

19852009*

Source: Food for Thought 2010 (market 2009) and Bonduelle

* Market in Europe (West and East) + North America


17%

18%

58%

7%

63%

17%

15%

5%

7%9%

84%

Fresh processed

Canned Frozen

Five-year outlook

Raw vegetables

STRATEGY

VEGETABLES: A GROWING MARKET PARTICULARLY FOR PROCESSED VEGETABLES


Source: Food for Thought 2009 (market 2008)

46%61%78%89%Raw vegetables


26%16%16%4%Frozen

23%16%2%6%Canned

5%7%4%1%Fresh cut and

delicatessen salads

100%100%100%100%

USAFRANCEITALYPOLAND

STRATEGY


THE PERCENTAGE OF PROCESSED VEGETABLESINCREASES WITH ECONOMIC DEVELOPMENT

5

ALL TECHNOLOGIES…

ALL BRANDS…

ALL DISTRIBUTION CHANNELS…

AND ALL OVER THE WORLD

ALL VEGETABLES…

History and strategySTRATEGY

BONDUELLE: A PURE PLAYER


ALL VEGETABLES

According to the definition given by consumers

50 basic vegetables processed into2,500 product references


BONDUELLE: A VEGETABLE SPECIALIST

STRATEGY


6

D'AUCY

PICARD

MC CAIN

IGLO

BIRDS EYE

FINDUS

Fresh processed


Others

Pizzas

Fish

FRUDESA

MARTINET

FLORETTE

Prepared meals

Vegetables

Frozen

FROSTA

HAK

DEL MONTE

SODEBO

Canned

D'AUCY

Green Giant

PICARD

MC CAIN

IGLO

BIRDS EYE

FINDUS

BONDUELLEBONDUELLE

STRATEGY

BONDUELLE: PRESENCE IN ALLTECHNOLOGIES


A PRODUCT PORTFOLIO THAT MATCHES ALL THE MARKET'S NEEDS

Raw vegetables

Ready-to-Use Range

Frozen

Delicatessen

+ 20% / year

Development / Technology= ƒ (freshness + convenience)

Convenience

Jars


+ 10% /

year

+ 5% / year

74% of the

market

+ 0% / year

+ 5% / year

+ 1% / year

Freshness

Tins

STRATEGY

7

International, core market, multi-technology, multi-channels

Top of the rangeCannedFrance

FrozenSpain

Market basicsFrozenCanada


All brands

4 STRONG BRANDS…

43%

Client brands Bonduelle Brands(Bonduelle, Cassegrain, Frudesa, Arctic Gardens)

Others6%

51%

Breakdown of sales for 09/10


All brands

… BUT ALSO THE DISTRIBUTOR BRANDS

8

73%

Industry

RetailFood Service 20%

7%


A STRONG PRESENCE IN THE SUPERMARKETAND FOOD SERVICE SECTORS

STRATEGY

All distribution channels

Breakdown of sales for 09/10

CannedFresh processedDelicatessen Frozen


In all countries

STRATEGY

CONCENTRIC CIRCLES EMANATING FROM FRANCE

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Outside Europe


Canned / Frozen

STRATEGY

Growth based on two axes

Europe

Fresh processed / Delicatessen

GROWTH DRIVERS:CANNED AND FROZEN OUTSIDE EUROPE

FRESH CUT SALADS AND DELICATESSEN IN EUROPE

75 80 85 90 95 00 05

T/O

CORN

SpainPortugal

CentralEurope

Fresh processed

Eastern Europe

2 factoriesin

France

42 factoriesin

11 countries

North America

09

€ 150 M

€ 1 560 M

History et strategySTRATEGY

Growth

BONDUELLE: WORLD LEADER IN VEGETABLES

10

MUSHROOMS

10

40%Other EU countries

35%France50%

France

25%

Germany

25%Other EU countries

1989: €511 M 2010: €1,560 M

33%

Frozen

66%

Canned

50%Canned

27%

Frozen

23%Fresh processed


25%

Outside EU

STRATEGY

Growth

A FAST CHANGING PICTURE

2010: 7,437 permanent staff1988: 3,500 permanent staff

France

Outside of France

Outside of France

France


Growth

A MAJOR CULTURAL CHANGE

11

DelicatessenDelicatessenSaladsSalads

Source: Food for Thought and Nielsen

Fresh cut SaladsFresh cut Salads


30%

22%

50%

30%

No. 1 No. 2 No. 3

STRATEGY

International

FRESH CUT SALADS AND DELICATESSEN: No. 1 IN EUROPE WITH 20% MARKET SHARE

Source: Food for Thought and Nielsen


25%

25%14%

7%16%

11%

4%

STRATEGY

International

FROZEN FOODS:No. 2 IN EUROPE WITH 12% MARKET SHARENo. 1 IN CANADA WITH 65% MARKET SHARENo. 1 IN BRAZIL

No. 1 No. 2 No. 3

65%

12

43%

37%

40%

21%

40%

16%15%

38%

25%

26%

28%

23%


InternationalSTRATEGY

CANNED FOODS:No. 1 IN EUROPE WITH 30% MARKET SHARENo. 1 IN CANADA WITH 70% MARKET SHARE

No. 1 No. 2 No. 3

70%


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INTERNATIONAL

PROFITABILITY

LONG-TERM OVER SHORT-TERM PRIORITIES

BRAND & INNOVATION

GROWTH


SUSTAINABLE DEVELOPMENT

75 80 85 90 95 00 05

T/O

CORN

SpainPortugal

CentralEurope

Fresh processed

EasternEurope

2 factoriesin

France

42 factoriesin

11 pays

North America

09

150 M€

1 560 M€

10

POLICY Policy and organisation

Growth over 30 years

+ 10% PER YEAR ON AVERAGE 5% EXTERNAL, 5% ORGANIC

MUSHROOMS

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POLICY Policy and organisation

UNMATCHED INDUSTRIAL AND COMMERCIAL PRESENCE

North America

South America

Sales and marketing departmentsSales and marketing department « GELAGRI »Distribution centersFrozenCannedCanned (factories « GELAGRI »)Fresh-cutPreparedMushroom


10532Current operating income (€M)

2009/101999

X 3X 3

POLICY

Profitability

AN AVERAGE INCREASEIN PROFITABILITY OF 12%/YEAR

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• A close partnership with the agricultural world

France 35,000 Canada 39,000Spain - Portugal 2,300Hungary - Poland 14,400Italy - Germany 4,000Russia 4,100Belgium 1,200

• Annual contracts with Producer Organisations

• A procurement charter:- Traceability- Security


3,500 growers and 100,000 hectares

POLICY

Long-term over short-term priorities

A PROCUREMENT POLICYSECURED AND SUSTAINABLE

R&D Investment• Total budget: > 1% of annual sales

• More than one hundred engineers,nutritionists and chefs

• Investments in 09/10: €91 M, 10/11: €75 M

Policy and organisationPOLICY

Industrial Investment

Long-term over short-term priorities

SIGNIFICANT INVESTMENTS IN PRODUCTION FACILITIES AND INNOVATION PROCESS

• 40 % Efficiency 20 % Capacity

16

CASSEGRAIN: NEW SWEET & SAVOURY FLAVOURSAND DRIED VEGETABLES


Brand & innovation


Brand & innovation

BONDUELLE CANNED FOODS: EXTENSION OF THE “VAPEUR” (STEAM) RANGE

17

POLICY

Brand & innovationPolicy and organisation

BONDUELLE FOOD SERVICE: NUTRITIONAL COOKED STIR FRIES,

SPINACH, CO-BRANDING AND « TRAITEUR DE PARIS »

BONDUELLE FROZEN: CREATING NEW OCCASIONS FOR PRODUCT CONSUMPTION

(NATURAL, PREPARED,…)


Brand & innovation

18


Brand & innovation

COMMUNICATION: STEAMED CAMPAIGN, 2009

LEADER36.4%86Russia

LEADER10%61HungaryLEADER28.5%63PolandLEADER21.5% (1)47ItalyLEADER16% 52BelgiumLEADER18% 64The NetherlandsLEADER13.4%60Spain BonduelleLEADER24.4%54 Germany

11.1%21France CassegrainLEADER (Bonduelle

+ Cassegrain)12.5% (1)54France Bonduelle

PositionMarket share

UnpromptedBrand

awareness

Sources: IRI/NIELSEN/IPSOS 2008

(1) Average multi-technology market share


Brand & innovation

BONDUELLE: HIGH LEVELS OF BRANDAWARENESS THROUGHOUT EUROPE

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PEOPLE

NATURAL RESOURCES

NUTRITION / QUALITY

AGRICULTURE

TRANSPORT

5priorities

POLICY

Sustainable Development

-- 18%*18%*2005 / 2006 2009 / 2010


Scope: Europe + Canada

electricity + heat = € 35.3 M

Energy consumption

Water consumption

* unit consumption-- 29%*29%*

2005 / 2006 2009 / 2010

POLICY

Sustainable Development

SIGNIFICANT REDUCTIONSIN ENERGY AND WATER CONSUMPTION

20

www.fondationwww.fondation--louisbonduelle.orglouisbonduelle.org


Actions in the field

Supporting research

Information and awareness-

raising

POLICY

The Louis Bonduelle Foundation

THE LOUIS BONDUELLE FOUNDATION: HOW TO PROMOTE VEGETABLES CONSUMPTION ?

EUROPE

CANNED FOODSFROZENFRESH

DELICATESSEN

DELICATESSEN RANGE, RETAIL

CANNED FOODSFROZEN

CANNED FOODSFROZENRETAIL &

FOOD SERVICE

CANNED FOODSRETAIL

FROZENRETAILBRAND

FROZEN DISTRIBUTOR

BRANDS

35.5% 100% 100% 100% 100% 100% 100%

READY-TO-USE RANGE,

RETAIL

ORGANISATION

OUTSIDE EUROPE

3 FACTORIES 13 FACTORIES 7 FACTORIES 2 FACTORIES 1 FACTORY 7 FACTORIES

Centralized departmentsCentralized departmentsCentralized departments

8 CUSTOMER-ORIENTED BUSINESS UNITS

•EXTERNAL RELATIONS & SD•FINANCE•HR•MKT and COMS •R&D•IT•PURCHASING•AUDIT


CANNEDFROZENFRESH

DEHYDRATEDPASTEURIZED

6 FACTORIES

100%

4 FACTORIES

21

99.99 %

Policy and organisationORGANISATION

A PUBLIC FAMILY-RUN COMPANY

Floating

41.10%

Floating

41.10%

Employees+ Treasury stock

6.19%

Employees+ Treasury stock

6.19%

Bonduelle SCABonduelle SCA

Bonduelle SASBonduelle SAS

Industrial and commercial subsidiariesIndustrial and commercial subsidiaries

Christophe BONDUELLE ChairmanDaniel VIELFAURE Chief Executive Officer

Manager: General partner representedby Christophe Bonduelle

Other Bonduellefamilies25.08%

Other Bonduellefamilies25.08%

Main ShareholderBonduelle Family

27.63%

Main ShareholderBonduelle Family

27.63%

2010/2011 1st Half-Year Results

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Turnover

A turnover in large increase…

HY 09/10 HY 10/10 Δ

760 884.6 16.4 %

…favorably impacted by the external growth…

Effect perimeter 10.5 % («France Champignon»)

…the variations of exchange…

Effect exchange 4.3 %

…and carried by a solid organic growth

Growth LFL basis + 1.6 %

2010 / 2011 2010/2011 1st Half-Year Results

Turnover: a solid totalgrowth of 16.4 %

…Balanced between the areas…

+ 19.2 %Outside Europe+ 15.3 %Europe

HY1 10/11

+ 11.2 %Chilled+ 3.8 %Frozen

+ 25.6 %Canned

…and boosted by the canned activity


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An internal growth supported by the Non Europe Area and which accelerates in Q2

+ 1.6 %+ 1.2 %+ 2.1 %Total

+ 5.1 %+ 5.5 %+ 4.5 %Outside Europe

+ 0.2 %- 0.9 %+ 1.2 %Europe

HY1Q2Q1

2010 / 2011

Turnover LFL basis


…While Europe is impacted by the declines of the prices and the transfers to «GELAGRI»

A deterioration of profitability in Europe

…the profitability outside Europe remaining solid.

4.5 %

39.8

884.6

Total

12.1 %1.5 %6.9 %13.9 %4.2 %%

309.852.429.123.3Current Operating Profit

248.8635.8760208.7551.3Sales

Outside Europe

EuropeTotalOutside Europe

Europe

HY1 10/11HY1 09/10

2010 / 2011

Operational profitability


24

Significant Non Recurrent Elements on HY1

- 260 bp4 %6.6 %%- 29.7 %35.149.9Operating Profit

(4.8)(2.5)Non Recurrent Elements- 240 bp4.5 %6.9 %%- 24.- %39.852.4Current Operating Profit+ 16.4 %884.6760.-Sales

ΔHY1 10/11HY1 09/10


Operational profitability

Decrease in a Net Result in line with forecasts

- 160 bp- 38.5 %

- 29.7 %+ 16.4 %

1.7 %3.3 %%15.525.2Net Result

(10.6)(12.1)Financial Charges35.149.9Operating Profit884.6760Turnover

HY1 10/11HY1 09/10

2010 / 2011

Net Result


25

A solid financial structure, a gearing in improvement

129 %

614

477

31.12.10

146 %

598

407

31.12.09

177 %Gearing

637Net Financial Debt

397476488Working capital

360Shareholder’s equity

694529509Fixed assets

31.12.0831.12.1031.12.0931.12.08

LIABILITIESASSETS

2010 / 2011

Financial Structure

Thanks to the improvement of the Working capital (inventories)Despite the debt of acquisition «France Champignon»


A financial structure strengthened by the US private placement in August, 2010 (US 165 millions $) at competitive cost.

31.12.09 31.12.10

Debt Short Term

Debt Long Term

€ 467 M 78 %

€ 131 M 22 %

€ 43 M 7 %

€ 571 M 93 %

Average cost of the debt: 3.47 % Average cost of the debt: 3.77 %


Financial Structure

26

Projects

• 130,000 Tonnes• Sales IFRS: € 195 million• 1 500 Employees• 6 Factories + 1 distribution centers• Acquisition April 2010

A strategy: mushrooms, nothing but the mushrooms

« France Champignon »: Key figures

ACQUISITION « FRANCE CHAMPIGNON »

Projects

27

• Networks:

- GMS- RHD- B to B

« France Champignon »: mushrooms, nothing but the mushrooms

• Technologies:

- Canned- Frozen- Fresh- Pasteurized- Deshydrated

• Brands:

ABRA

ROYAL CHAMPIGNON

LEON

CLIENT BRANDS


Projects

ENTERPRISE VALUE / « FRANCE CHAMPIGNON »

Enterprise Value*

€ 96 million

ie 6 x EBITDA 2009


Projects

* Estimated

28

Satisfactory integration process

- Expansion of the territory of the group & brand

Transfer of the brand in October, 2010

- Add in Business (Consumer & clients)

- Partial upstream integration of agriculture

- Improvement in industrial process

Mechanical cutting

- Potential synergies at all levels of the P&L

CommercialIndustrial and logisticAdministrative


Projects

Phase 1: Canned Peas-Corn• Start of operations: September 2010

• Profitability in line with outside Europe businesses

Projects

INVESTMENT PROJECT IN BRAZIL

Investment

€ 15 million

Capacity

50,000 T

Turnover

€ 50 million

• Return on capital employed > Group’s average• Targeted market share 10 %

Plan over 5 years

29

BRAZIL: STARTING OF OPERATIONS « CRISTALINA » September 2010

Projects

Projects

30

Projects

Phase 1: Canned Peas-Corn• Start of operations: 2013

• Supply of Ukraine, Russia and former CIS markets

Projects

INVESTMENT PROJECT IN UKRAINE

Investment

€ 30 million

Capacity

50 000 T

31

UKRAINE: GEOGRAPHICAL SITUATION

Projects

Prospects

32

67 - 7070 - 75Operating Profit

113 NRE

78 - 8173 - 79Current Operating Profit

1 7201 700Turnover

Updating February 2011Forecast October 2010

Prospects2010 / 2011

NRE«France Champignon»

«Westmeerbeek»«Sud-Ouest»

2010/2011 Prospects (€M)

«France Champignon»

Christophe CHATEAUCommunication

and Corporate Marketing Director

email : [email protected] Nicolas Appert, B.P. 30173 – 59653 Villeneuve d’Ascq Cedex, France

Tél. : +33 (0)3 20 43 60 60 – Fax : +33 (0)3 20 43 60 00

Grégory SANSONChef Financial Officer

email : [email protected] Nicolas Appert, B.P. 30173 – 59653 Villeneuve d’Ascq Cedex, France

Tél. : +33 (0)3 20 43 60 60 – Fax : +33 (0)3 20 43 60 08

world leader in processed vegetables - tradinfo · world leader in processed vegetables march 2011...

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