Second-tier markets as first priority Deloitte Emerging markets seminar ď ź 30 January 2013
Who we are
20.000 employees
14,391 member dairy farms
Located in 27 countries: 30% global sales in second-tier 6,307 revenue (in millions of euros)
12,662 employees
71 locations
324
revenue (in millions of euros)
140
employees
5
locations
North and 999 revenue South America (inofmillions euros) United States of America
1,032 employees
4
locations
1,996 Africa and revenue The Middle East (inofmillions euros) Ghana Nigeria Saudi Arabia United Arab Emirates
5,202 employees
26
locations
Europe The Netherlands Germany Belgium Hungary Romania Greece Russia United Kingdom France Spain Italy Austria
Asia China Hong Kong Indonesia Singapore Malaysia Thailand The Philippines Vietnam India
Key figures
in million euro
Results
2011
Net sales
9.626
EBIT
403
Net profit
216
Balance sheet Total assets
5.739
Equity
2.264
Ratio’s Interest coverage ratio
7.9
Net debt / EBITDA
0.9
Solvability
39,4%
What we do
Valorising milk: 1 Million liter/hour
Farmer
Production
Retail & others
Consumer
Our products, our customers
Consumer Products Europe
Consumer Products International
Cheese, Butter & Milkpowder
Ingredients
Our aspiration, our core promise
“Bringing Essential Nutrients from Natural Dairy to People Everywhere�
What motivates us
9 billion people: food security‌
‌ and nutrient security
Dairy is
COOL
Why we win in second-tier markets:
sustainability, science, strategic channels and size
Sustainability: Grass to glass in Holland… • Fundamental global need for healthy food • Milk is one of the most nutrient-rich foods • As one of the leading multinational dairy businesses,
we aim to contribute to sustainable production • We want to show leadership in the field of Corporate Social Responsibility by means of:
Health & nutrition
Sustainable dairy chain
Tackling nutrient deficiency & obesity
More efficient use of natural resources
Dairy development
Sustainable dairy farming
Asia, Africa
Sets the standard
Sustainability …and connected to local small dairy farmers Livelihood support program 40,000 small farmers in dairy sector SE Asia and Nigeria (since 1995) Keep local milk production in line with the growing need for nutritious food Close cooperation with authorities in countries
• • •
•
Program aimed at: Knowledge transfer via model farms Technical farm services & Quality Assurance Higher productivity cows and farms Stable jobs and higher family income farmers
Dairy Development Helping 40,000 small farmers in Asia and W-Africa
Science: At home: Innovation Centre Wageningen…
• New FrieslandCampina Innovation Centre in Wageningen • 450 specialists will work in the Innovation Centre in 2013
Science: …and with partners around the world
Asia
Strategic channels: Moving directly into E-marketing‌ Assortment driven
Assortment & Convenience driven
Developed CD model
Supply driven Hypers / Supers
Ecommerce
Traditional outlets Convenience stores Convenience driven
Assortment & Convenience driven
Developing CD model
Supply driven Hypers / Supers
Ecommerce
Traditional outlets Convenience stores Convenience driven
Strategic channels: …but general trade is neither out nor down 2011*
Eur 650 Bln
Market +46% MT +79%
2015* Eur 950 Bln
GT +36%
*Indonesia, Malaysia, HK, Thailand, Vietnam, Middle East, Nigeria, Russia, Romania. Source: Planet Retail
Size: Decades of presence in South and East Asia*‌ Japan Ingredients sales
China
#7
#3 Myanmar Laos, Cambodia
Vietnam
Exports from Thailand
30% market share
15% market share
#1
19% market share
Indonesia 22% market share * indicative data
#2
15% market share
Malaysia
#2
China: Grass to glass Infant nutrition - Ingredients
13% market share (IFT)
Philippines
#2
-
Hong Kong
#2 Thailand
FrieslandCampina growth initiatives
ASEAN: - Affordable - Broad dairy range - Goodness of milk - Focus on nutritional deficiency reduction
Size: …and constantly expanding our presence Exploring investments in Partnerships for Chinese B2B market
FrieslandCampina completes Alaska Milk acquisition Best Performing stock Highest return over 3 yrs
DLMI Bhd
Singapore R&D centre to be established 2013
What it delivered
From an average performer‌ (2006) 2006 Cono
MUH
Milk price incl member bonds
2006
32
31
Campina
Hochwald
Doc
average milk price 2006 = â‚Ź 29,50 Friesland Foods Arla
30
Nemelco 0
Bel
1000
2000
3000
4000
5000
6000
29
Humana
Nordmilch 28
27 Members/suppliers milk (mio kg)
7000
8000
9000
10000
‌to outperformance versus peers (2011) 44
42
Milk Price incl. member bonds
FrieslandCampina Cono Bel
40 DOC
Arla 38
Nemelco 0
1000
2000
FC Belgium NV Milcobel MUH
3000
4000 36
5000
6000
7000
Hochwald 34
DMK
32
30
Member milk volume in mio kg
8000
9000
10000
Thank you