Fazer Experience – an Investment in Finnish Design and Work

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Fazer Experience – an Investment in Finnish Design and Work Fazer Experience – an investment in Finnish design and work Jouni Grönroos, CFO and Deputy CEO, Fazer Group 1 September 2017 1 31.8.2017 Company confidential © Fazer. All rights reserved Fazer in brief • Established in 1891 • International family-owned company offering quality bakery, confectionery, biscuit and grain products, as well as food and café services • Operates in eight countries and exports to around 40 markets • Net sales totalled 1.6 billion euros in 2016 • Employed 14,876 people in eight countries in end of 2016 • Operating profit before amortisation of goodwill amounted to 87.7 million euros • Operations comply with Fazer’s ethical principles which are based on the Group’s values and on the UN Global Compact 2 31.8.2017 Company confidential © Fazer. All rights reserved Fazer Group overview Fazer Bakery Fazer Food Services Net Sales: 603 M€ Fazer Group total Personnel: 7,150 Net Sales €1.6 billion Net Sales 601 M€ Brands: Fazer, Oululainen, Skogaholm, Hlebny Personnel 14,876 Personnel 5,951 Dom, Druva, Gardesis Countries: Finland, Sweden, Brands: Amica, Wip, W ilberg, Tastory, Countries: Plant bakeries in Finland, Sweden, Russia, Norway, Denmark, Fazer Russia, Latvia and Lithuania. Bakery shops in Estonia, Latvia, Lithuania Countries: Finland, Sweden, Norway, Finland and in Sweden. Denmark Fazer Cafés Fazer Confectionery Net Sales: 22 M€ Net Sales: 337 M€ Personnel: 220 Personnel: 1,109 Countries: Finland Brands: Karl Fazer, Fazer Pure Dark, Dumle, Geisha Countries: Production in Finland Fazer Mills Net Sales: 77 M€ Fazer Lifestyle Foods Personnel: 138 Established 2017 Countries: Finland and Sweden Focus on non-dairy grain products, plant- based meals and on-the-go snacking Net Sales: 2016. Personnel: 31.12.2016. 3 31.8.2017 Company confidential © Fazer. All rights reserved The cornerstones of our success FAZER Always a Little Better, Inspires to Enjoy, Feel Good about the Choice BRAND THEMES Fazer brand themes describe how we do things at Fazer and are the core of the Fazer Brand Strategy FAZER We engage l We develop l We perform BEHAVIOURS Describe how we behave and reach our targets and what we expect from our leaders and employees FAZER’S MISSION IS FAZER’S VISION IS Food with a Purpose We spark joy and well-being through MISSION It describes our purpose VISION meaningful food experiences and answers the questions "What business are we in?” and Our vision statement provides strategic direction and "What is our business for?" describes what we want to achieve in the future Customer Focus, Quality Excellence, Team Spirit FAZER VALUES Our core values form the foundation on which we perform work and conduct ourselves. The values underlie our work, how we interact with each other, and which strategies we employ to fulfil our mission ETHICAL PRINCIPLES Ethical principles guide us in our daily work 4 31.8.2017 Company confidential © Fazer. All rights reserved Strong market position basis for growth 5 31.8.2017 Company confidential © Fazer. All rights reserved Corporate responsibility Responsible offering for Fazer consists of people’s everyday well-being, sustainable use of the planet’s resources and the shared value a company creates in society. Fazer contributes by making responsible bakery, confectionery and food choices easy. 6 31.8.2017 Company confidential © Fazer. All rights reserved Fazer’s 125 year anniversary • September 2016 marked 125 years since Karl Fazer opened his French-Russian café on Helsinki’s Kluuvikatu, and Fazer celebrated this anniversary in style • The main anniversary events were arranged during the autumn • The most visible event was the opening of the Fazer Experience visitor centre on 17 September • The anniversary was visible for consumers during the Holiday Season at year-end through the concept “125 reasons to celebrate” “Remembering the birth of Fazer as a company can also fuel our future progress. Our founder’s courage and dedication to his vision is the inspiration for us to create the future we would like to see.” Christoph Vitzthum, President & CEO 7 31.8.2017 Company confidential © Fazer. All rights reserved Objectives of Fazer Experience • To create a brand experience that leads to a life-long commitment to and relationship with Fazer by creating an inspiring and educational brand experience • To welcome 150,000 visitors annually – Fazer has welcomed visitors for over 60 years – Previously, Fazer was able to accommodate some 50,000 visitors annually • A sign of trust in building the future – Fazer as a business and the operations at this site 8 31.8.2017 Company confidential © Fazer. All rights reserved The new Fazer Experience Visitor Centre offers a unique experience • The new centre, a strong investment in Finnish design in itself, gives our visitors an even more comprehensive experience of our brand and the many stories it encompasses • Offers a unique exhibition that engages all the senses • The company creates an inspirational and educational brand experience that leads to a life-long relationship with Fazer 9 31.8.2017 Company confidential © Fazer. All rights reserved The Fazer Experience Building • Forms the area’s architectonic landmark and target for international visits • Designed by the Finnish firm K2S Architects Ltd • The constructing company SRV was in charge of the construction • Construction started in 2015 • The work involved tens of builders, artisans and creative designers • Finnish materials dominate the visitor centre’s internal and external surfaces • A combination of contemporary design and traditional materials • Good cooperation with City of Vantaa • Circular economy – The heating relies on biogas produced from production waste – Solar cells provide electricity 10 31.8.2017 Company confidential © Fazer. All rights reserved Exhibition – the Fazer experience • Fazer’s visitor centre is an experience for all the senses • The exhibition is the result of the cooperation between Ateljé Sotamaa, countless Fazer employees, and many other professionals from glassblower to coder and carpenter to composer • The works change and live continuously • The entire visitor centre, including sound, furniture, items and artwork, has been especially designed for Fazer • Its foremost purpose is to arouse emotions, teach and inspire – Walk among real cocoa trees, have a robot teach you about nutrition, move around a kinetic wood of tastes, experience a virtual factory tour wearing virtual goggles, learn about the origins of chocolate, try out a career as a miller and meet Fazer employees, starting with Karl Fazer • The exhibition is accessed with a guide – The duration of a guided tour is 1 hour – Individuals and groups can book tours in advance – Tickets are also available at the entrance – Guided tours in Estonian, Russian, German and Chinese are available at request – in addition to the standard Finnish, Swedish and English 11 31.8.2017 Company confidential © Fazer. All rights reserved The experience starts in the garden • The visitor experience actually starts before one enters the building. There is an outdoor garden growing useful plants and crops that Fazer uses as raw materials – rye, oat, wheat, barley, fruit trees, berry bushes, sunflowers, rapeseed and sugar beet • This theme continues in the tropical indoor garden, crowned by a cocoa tree – The exotic fruit and spice plants thrive in the good care of a horticulturalist, in a moist and warm temperature of approximately +28°C – The inner garden brings real nature within the reach of the visitors and appeals to people in all ages 12 31.8.2017 Company confidential © Fazer. All rights reserved Programme and events are part of the experience • Fazer has been providing visitor activities for over 60 years. The new Visitor Centre allows us to offer a more memorable and educational visiting experience than ever before • At Fazer Experience, you can organise children’s birthday parties, learn the secrets of baking, get the top chefs’ best tips for your home kitchen at our cooking school, or learn the secrets of chocolate at our chocolate school • Meeting services for various events, seminars and meetings – Karl Fazer Hall (max. 180 persons) – Idea Bakery (max. 20 persons) – Food Stories 13 31.8.2017 Company confidential © Fazer. All rights reserved Fazer Café Fazerila offers taste experiences • Fazer's legacy is strongly intertwined with the café business – 17 September 2016 marked 125 years from the day Karl Fazer opened his Russian-French café on Helsinki’s Kluuvikatu • The cafés bring together taste sensations and first- class service, while delighting guests with the same high-quality products and excellent service in each location • The café is open during the visitor centre's opening hours, seven days a week. You are welcome to stop by even if you are not visiting the exhibition itself 14 31.8.2017 Company confidential © Fazer. All rights reserved The Fazer Experience Shop • The visitor centre’s shop is open to the public • Offers a wide selection of Fazer’s products and special design items – over 400 articles to bring back home or serve at parties • Fazer wants to be part of people’s celebrations and make the world taste good, every day 15 31.8.2017 Company confidential © Fazer. All rights reserved Fazer Experience – summary • Already over 100,000 visitors in 2017 (by August) • Some 60% of all visitors take the tour • 10% of the guided tours are in other languages than Finnish – 25% in the summer • The biggest group of foreign visitors is Chinese tourists – People from Germany and the US are also large visitor groups • Awarded the Trip Advisor excellent destination certificate in 2017 based on customer feedback • Feedback is constantly on an excellent level, NPS 70 • Special events all year round • The Finnish Constructional Steelwork Association granted Fazer Experience the “Steel Construction of the Year 2016” award. – According to the jury, the architectural dimension of Fazer Experience is splendid and it leans on highly skilled steel and glass work • Received the 2017 Kehäkukka recognition, which the City of Vantaa awards each year to an innovative, high-quality architectural object 16 31.8.2017 Company confidential © Fazer.
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