February 2019 GRANAROLO GROUP
Intesa SanPaolo Granlatte Scarl Cooperlat
19,78% 77,48% 2,74%
Granarolo S.p.A.
ITALY 100% 60% 100% 50% 65% 100% 50% 100% 100% 60%
Zeroquattro Centrale Amalattea Casearia Gennari Pastificio Fattorie Zeroquattro Conbio San Lucio Logistica del Gusto Italia Podda Italia Granarolo Giacobazzi S.r.l. S.r.l. S.r.l. S.r.l. S.r.l. S.r.l. S.r.l. S.r.l. S.r.l. S.r.l.
EUROPE 100% 100% 70% 55% 89% 100% 60% 51%
Matric Granarolo Granarolo Granarolo Granarolo Granarolo Italgross Granarolo Granarolo Benelux Iberica S.L. France SAS Baltics OÜ Suisse SA AB Hellas SA UK Ltd Sarl Sweden
REST OF THE WORLD 100% Midland 60% 60% 100% 100% 100% Food Group UK
Allfood Importação Yema European Granarolo China Indústria e Distribuidora Granarolo Foods Granarolo Commercial Comércio SA de Alimentos Chile S.p.A. Ltd USA Relations Office Brazil Ltda. NZ Update February 2019
2 3 THIS IS WHAT WE’RE MADE OF Turnover of 1,3 billion 15 production sites in 7 euros Italian regions at the end of 2017
700 farmers 850,000 tonnes of milk in 12 Italian regions processed/year
7 production sites abroad 3,160 employees (2 in France, 1 in UK, 3 in (in 2009 there were 1,537) Brazil, 1 in New Zealand)
720 trucks for 70 vehicles distribution to 50,000 collecting the milk retail points from the farms 40 million consumers Present in 75 20,000 families get their different countries income from our work worldwide
4 5 FOREIGN PRODUCTION PLANTS 2018
Les Fromagers de Saint Omer Campagne-lès-Wardrecques
Midland Food Group Les Fromagers de Willenhall Sainte Colombe Saint-Genix-sur-Guiers FRANCE: 2 PLANTS UNITED KINGDOM: 1 PLANT
Yema Adrelândia European Foods Ltd Auckland All Food São Paulo
Yema NEW ZEALAND: 1 PLANT BRAZIL: 3 PLANTS Guareí
6 GRANAROLO: COMPETITIVE POSITION IN THE MAIN MARKETS
The major dairy group in Italy with a recent expansion in the global market, recognised as:
•1st contributor to the growth of the dairy markets
•1st player on the fresh milk market
•2nd player and leading brand on the UHT milk market
•3rd player on the yogurt market
•2nd player on the fresh cheese market
•3rd player on the dairy-free market Granarolo Gplus: •1st player on the hard cheese market in France a unique product of pure innovation
7 GRANAROLO GROUP: OPERATING RESULTS TO 2017 TOP PLAYER FOOD&BEVERAGE ITALY*
1° 1.782
2° 1.419
3° 1.417
4° 1.409 5° 722
6° 712
7° 664
*Source: IRI Infoscan Totale Italia ISLSP – YTD Source: Management Data Updated to December 2017
8 FINANCIAL HIGHLIGHTS 2017
SALES NET DEBT +7,8% 1.273 mln/Euros vs. p.y. 138 mln/Euros
EBITDA DEBT / EBITDA -13,4% 70 mln/Euros vs. p.y. 2.0 • Consolidated Financial Statements • IFRS Standards EBIT EQUITY -30,8% 29 mln/Euros vs. p.y. 241 mln/Euros
NET PROFIT DEBT / EQUITY -46,4% 10 mln/Euros vs. p.y. 0.57
9 STRATEGIC PILLARS
10 DEVELOPMENT BY COUNTRY SOME TIME AGO, THE GRANAROLO GROUP SUCCESSFULLY STARTED AN IMPORTANT INTERNATIONALISATION PROCESS IN ORDER TO TAKE COMPLETE ADVANTAGE OF THE POTENTIAL OF FOREIGN MARKETS
Business internationalisation and development abroad
4% 28% NET SALES NET SALES FY 11 FY 17
96% ITALY 72% ITALY ABROAD ABROAD
11 THE INTERNATIONALISATION PATH
REVENUE BY MARKET
2000 2011 2015 2017
98% 96% 80% 72%
1% 3% 17% 22%
1% 1% 3% 6%
515 mln€ 845 mln€ 1.078 mln€ 1.273 mln€
12 EVOLUTION OF THE GRANAROLO GROUP
1.273 845 mln 785 mln 515 Leadership mln New Expansion mln on Italian production on new market segments markets Evolution of consolidated revenue 2000 2004 2011 2017
Diversification in product portfolio
Internationalisation
13 DEVELOPMENT BY PRODUCT
THE GRANAROLO GROUP’S MISSION ABROAD IS TO EXPORT THE TRADITION AND KNOW-HOW OF ITALIAN-MADE SPECIALITIES (DAIRY AND NON-DAIRY). INDEED, THE GROUP HAS DIVERSIFIED ITS PORTFOLIO IN RECENT YEARS.
Product diversification
NET SALES NET SALES 17% BY BU FY 15 BY BU FY 17 25% 34% MILK AND BEVERAGES 43% MILK AND BEVERAGES CHEESE AND BUTTER CHEESE AND BUTTER 40% OTHER 41% OTHER • YOGHURT 7% • OTHER PRODUCTS 18%
14 THE GROUP’S BRANDS IN EUROPE
Sweden
Belgium and Luxembourg Scandinavian Area
Categories Ranking Categories Ranking Fresh cheeses 1°/2° Fresh cheeses 2° Lithuania/Estonia France Italy
Categories Ranking
Categories Ranking Fresh cheeses 1° Categories Ranking Hard cheeses 1° Fresh milk 1° Ricotta 1° Fresh cream 1° UHT milk 2° Italian Mozzarella 2° Romania Yogurt 3° Buffalo Mozzarella 1° Vegetable products 3° Fresh cheeses 2° Categories Ranking Vegetable products 3° Fresh cheeses 1° Spain
Categories Ranking Fresh cheeses 4° Greece
Switzerland Categories Ranking Fresh cheeses 1° Organic milk 1° Vegetable products 2°
15 GRANAROLO IN THE WORLD
International growth thanks to direct presence on markets with own distribution and production plants, to intercept both the Group’s core product markets and those of top-value Italian food in general
16 INNOVATION: A FUNDAMENTAL TURNOVER RESOURCE FOR THE 2017 PRODUCTS LAUNCHED IN GRANAROLO STRATEGY THE LAST 5 YEARS 144 Mln/Euros
Sell-out turnover
Sales in mln/euros Source: IRI Infoscan and Nielsen
17 FUTURE CHALLENGES
1. Innovate in the dairy market and enter new high-potential markets
2. Enable companies in the production chain to grow and consolidate
LET’S GO FROM BEING A TYPICALLY 3. Become the benchmark Group abroad for Italian agro-food products MILK AND CHEESE COMPANY
TO BEING A COMPANY OF FOOD 4. Consolidate leadership on core PRODUCTS MADE IN ITALY markets THAT MAKES BRANDED AND
PRIVATE LABEL PRODUCTS
THAT SELLS ON NATIONAL AND INTERNATIONAL MARKETS
18 AFRICA MILK PROJECT
The objective of the Africamilkproject was to develop—around a small dairy situated in one of the poorest districts in Tanzania (the Njombe Milk Factory)—a true dairy production chain, capable of generating profit from the efforts of the first local farmers involved (in reality we are dealing with families who own one or more cows), in order to create a small but self-sufficient cattle farming system, capable of producing safe (pasteurised) milk, distributing it to families and schools, thus insuring food, work and an autonomous financial activity.
Today this dream is a reality. The Milk Factory in Njombe collects the raw material from 800 local farmers, provides work for 800 people, and supplies milk, for free, to 26,000 children in order to educate families on the consumption of milk.
19 MOZAMBIQUE , MILK PRODUCTION CHAIN TO GIVE WORK AND NUTRITION
20 DONATED HUMAN MILK BANK IN BOLOGNA
THE MILK BANK IS A CENTRE THAT COLLECTS HUMAN MILK GIVEN BY DONOR MOTHERS
THE MILK BANK ensures the free distribution of mother's milk which, thanks to its properties, is used for many pathologies and often represents an additional guarantee for a child's survival.
21 We enhance productions of excellence and support the penetration of Italian products abroad