How can logistic companies support food companies in their export strategies www.stef.com We support Germany partnership Netherlands the food industry in its development 2016 2014 STEF becomes Initial public sole shareholder Belgium offering in La Méridionale 1999 Single brand 1998 2009 Italy & Switzerland 2012 1998 Creation of the Société Française de Transports & Entrepôts Frigorifiques, Portugal a company specialising in 1995 Introduction of the ESP refrigerated transport and cold storage (employee savings plan) 1920 STEF 1993 acquisition TFE Creation of the 1987 STEF-TFE Group acquisition “We have created a European group 1989 Spain 1992 whilst maintaining the same operational 1991 excellence and the same sense of proximity to our customers.” Francis LEMOR, President 2 Connecting Food Market Players A pure-player in the food industry €3,3bn turnover over 10,000 customers in Europe 100,000 7 Food Industry / Food Service / Retailers deliveries European countries per day Breakdown of the group’s Transport & Logistics activities by temperature range +4,000 +240 vehicles 78% 14% 8% sites Chilled Frozen Thermosensitive, +2°C | +4°C -18°C | -21°C Dry & Ambient +5°C | +15°C IMPORT | EXPORT to 15 +18,000 European countries employees 3 28/11/2019 Connecting Food Market Players Connecting Food Market Players Our presence in the South of Europe Our core values France Italy Spain 169 platforms 36 platforms 21 platforms 14,300 employees 835 employees 1,685 employees Belgium Portugal The Netherlands Switzerland 4 platforms 4 platforms 3 platforms 5 platforms 380 employees 540 employees 350 employees 110 employees 4 Connecting Food Market Players Our 4 cornerstones Specialisation Leadership Growth Independence 2009 | 2018 Technical and technological Capital 6 core markets +4.98% Environmental Group annual Property Solutions specific growth rate to each segment Managerial Sales & Marketing +3.35% Social France +9.09% Other European countries 5 Connecting Food Market Players Offering tailored solutions that reflect our customers’ positioning within their markets AGRI-FOOD INDUSTRY AGRI-FOOD INDUSTRY AGRI-FOOD INDUSTRY CHILLED FROZEN TEMPERATE / DRY Specialisation 6 LARGE-SCALE RETAILERS ECOMMERCE OOH core markets 6 Connecting Food Market Players Leadership Tailored solutions that reflect our customers’ positioning within their markets Certified network Innovative solutions Leadership A network-based structure and sites that set us apart that puts our subsidiaries at IFS, ISO 9001, from services for manufacturers the heart of our economic activity ISO 14001, ISO 50001, etc. to local deliveries Technical and technological Environmental Managerial A robust and innovative A centre for property Internal promotion Social integrated information expertise Career developmental opportunities for both men and women systems hub to support the to support the group’s digitalisation process development Personnel transfer / subcontracting / (IoT, robotics, AI, chatbots, customer outsourcing etc.) Dedicated training centre for jobs in the cold industry Shareholding 7 Connecting Food Market Players Growth Steady development thanks to the trust of our customers PROGRESSION IN TURNOVER in €M Growth 3,255 2009 | 2018 2,826 2,825 2,975 2,765 2,633 2,505 +4.98% 2,057 2,300 Average annual growth in 1,984 turnover across the group +3.35% France 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 +9.09% Other European countries 8 Connecting Food Market Players Independence at the core of our DNA Protecting our commercial independence 10,000 customers (turnover below 10% per customer) Independence 70% of the group owned by its management team and Capital employees Property Over 10,800 employee shareholders in Europe Sales & Marketing 1998 29.4 % 41.8% 2018 Other shareholders Management and employees 58.2% 70,6% Full control over real estate sites, 95% of which are owned by the group Over €170M invested in the network every year 9 Connecting Food Market Players Building tomorrow SOCIAL & SOCIETAL ENVIRONMENTAL Investing in men and women, Reducing our impact Supporting associations and the solidarity economy. on the planet 4.4% -20% 6 awards Rate of employment of CO2 emissions ISICA Foundation Award individuals with a disability 2010 to 2017 ‘Actionnariat Salarié’ Award (x3) ‘ll Logistico dell’Anno’ Award ‘Maintien dans l’Emploi’ Award 2014 | 2017 2014 | 2017 7 awards 4 awards ‘Trophée Co2’ Award from ADEME ‘Handicap’ Award (x4) European Logistics Association Award ‘Emprendedores & Empleo’ Award (x2) ‘ll Logistico dell’Anno’ Award ‘Incorpora de la Caixa’ Award ‘Défis RSE 2016’ Award | Environment category 10 Connecting Food Market Players STEF in Belgium Our presence in Belgium +3,3% Turnover growth 2018 vs. 2017 A unique temperature Activity Food supply chain controlled infrastructure Under controlled temperature dedicated offer Central location in Belgium Transport & Logistics Services Bruxelles under controlled tempertaure Food Industry 4 Saintes multi-temperature Courcelles sites Multi temperatures Experience and capabilities Frozen Chilled 250 Retail refrigerated Ambient trailers A key supply chain 2018 turnover 63,3 M€ partner for food supply- chain employees Food Service 380 Food industries Retailers Food service certifications 12 Connecting Food Market Players Saintes Important player on the fresh retail market Antwerp Ideal • Situated on the A-B-C route location (Antwerp, Brussels, Charleroi) Saintes • Daily deliveries to 100% of retailers’ Optimized platforms • All types of consignees (Retailers, Charleroi delivery foodservice & Wholesalers) A-B-C route Co-packing • Assembling and Co-packing Services (packing, shrink-wrapping, etc.) solutions • Pre-retail Sevices (labeling, POS display, folding,...) 13 Connecting Food Market Players STEF TRANSPORT SAINTES 127 Refrigerated Trailers with 150 people Euro 5/6 at your service n o r m Temperature controlled 7.500 m² of deliveries : • Retail & wholesaler CHILLED cross-dock + advanced platforms storage • Point of Sales Activities 400T/day dispatched • European Groupage Saintes • Domestic groupage across Europe • Dedicated deliveries 500T/day delivered Locally 14 Connecting Food Market Players STEF LOGISTICS SAINTES 130 employees FROZEN CHILLED AMBIENT Reception, storage, picking and dispatch under controlled temperature 16.000 Pallet locations WMS STEF Certifications 15.000 m² of warehousing capacities CO-PACKING • Shrink-wrapping • Creation of displays 15 Connecting Food Market Players STEF LOGISTICS COURCELLES CHILLED AMBIENT 100 employees 4 000 m² of Our services warehousing capacities • Storage • Order picking 2500 M² CHILLED • Co-packing STORAGE • WMS / TMS / Infoquai 1500 M² AMBIENT • Traceability and continuous STORAGE monitoring of transport orders 45 000 T Courcelles 16 Connecting Food Market Players STEF BRUSSELS CITY 150 M² chilled CHILLED cross-dock Delivery of the last mile : Adapted vehicles • Center of Brussels • 6am – 3pm Euro 5/6 Deliveries to : 6 transport rides per day • Restaurants = 210 T • Small shops / stores • Wholesalers delivered/day Brussels 17 Connecting Food Market Players How can logistic companies support food companies in their export strategies? 18 Connecting Food Market Players Environment in the food supply chain market CONSUMERS Less product fidelity Open market (consumer compares products) New sourcing (e-commerce) Origin of products (carbon footprint, organic, food safety) Pressure on prices Opportunities for new entrants 19 Connecting Food Market Players Environment in the food supply chain market MARKET FOR PRODUCERS WITH A LOT OF UNCERTAINTIES Less value of historical contracts Difficulty on previsions Impact of investment funds on major international food producers Retail suffers – pressure on the market Complex political context (Brexit, import taxes) Less growth – need to expand to new markets By-passing actors in the chain (Brokers) Need for reliable partner in transport & Logistics 20 Connecting Food Market Players Environment in the food supply chain market HOW DID THE RELATIONSHIP BETWEEN LSP AND PRODUCERS EVOLVE Transport is a key element in obtaining a business Increasing demands of customers (time-slot, booking, DESADV,…) Time to deliver is decreasing (JIT, zero stock,…) Proximity with local market is essential Track & trace is essential (temperature, Food safety standards,…) Certification is mandatory (IFS,…) From transactional to partnership 21 Connecting Food Market Players Environment in the food supply chain market WHAT ARE THE TRENDS IN TRANSPORT AND LOGISTIC MARKET Scarcity of human capital (drivers, warehouse employees,..) Difficulty on distribution is increasing (accessibility cities, congestion, …) Decrease in regulatory constraints in export but increase in regulatory constraints on local distribution level Higher increase of transport cost vs. warehousing costs Local distribution centers Local distribution will become more difficult 22 Connecting Food Market Players Environment in the food supply chain market HOW STEF IS RESPONDING TO THIS MARKET CHANGE Build strong partnership with clients Build an European offer Specialization of our activities Increase track & trace through portal Help the customer in designing the best logistic solution Increase of value added activities for clients(4 PL, CS) New platforms for city delivery 23 Connecting Food Market Players BUSINESS CASES 24 Connecting Food Market Players Thank you for your attention www.stef.com .