Introduction to Greenyard - greenyard.group
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Introduction to Greenyard
Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability and innovation
6 Financials
2
“to make lives healthier by helping people enjoy
fruit and vegetables, at any moment, easy, fast
and pleasurable, whilst fostering nature”
3
A Refocused Greenyard
Fresh Frozen Prepared Horticulture
Main Sourcing & sales of Production & sales of Production & sales of Production and sales of
activity fresh F&V frozen F&V prepared F&V growing media
Customers
Serving the top EU Serving the top EU Serving the top EU
retailers retailers (LF) retailers (LF)
Trading ~2m tons of Production of ~450,000 Production volume Production of +3m m3
Productivity
F&V tons ~320,000 THL
Workforce +5.500 employees +2.000 employees +1.000 employees +800 employees
Geography Active in +20 countries Active in 7 countries Active in 2 countries
32 ripening, packing & 10 production sites 3 production sites in BE 14 facilities, Production
service centers & NL in Belgium and CEE
Sales +40 countries +80 countries +60 countries +60 countries
4
With sales across the globe
22%
30%
Sales
6%
€4,2bn
8%
10% 23%
Germany Netherlands Belgium
UK France Other
5
And world-wide spread diversified sourcing connections
A
Top overseas fruit exporting countries
Egypt
Cote d'Ivoire
Peru 2016
Chile
2017
Morocco
Turkey
Brazil
S-Africa
Colombia
Equador
Costa Rica
B
Top EU fruit exporting markets
Portugal
Poland 2016
Germany
2017
France
Greece
Italy
Belgium
Netherlands
Spain
The Fruit Farm Group
Greenyard Group
Strategic connections
6
Key investment highlights
1 Market leading position
2 To manage the supply chain complexity
3 Through a unique selling proposition
4 Building close relationships and partnerships
5 In a consolidating landscape
6 Promoting consumption of fruit & vegetables
7 In a sustainable way
7
Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability and innovation
6 Financials
8
Stable category with further growth outlook
Consumer spending on Fruit and Vegetables – Geography dynamic, 2015-2030 (€ tn)
CAGR ’15-’30
11% 8% 4%
8% 5%
8%
€768bn 16% 3%
€441bn 21% North America
13% 5% Latin America
14% Europe
Middle East and Africa
Asia & Oceania
56% 7%
46%
2015 2030
9 Source: Euromonitor, Oliver Wyman research and analysis
Consumption in F&V lagging behind
Vegetable consumption (g/capita) Fruit consumption (g/capita)
52% 56%
300 250
145 110
Recommended Consumed Recommended Consumed
10 Source: BE Voedselconsumptiepeiling 2014-15With increasing consciousness on healthy eating habits
Drink more water
Vegetables, fruit, bread,
MORE nuts, oil
Fish, cheese, eggs,
As little as milk, poultry
possible
Butter,
Sugar,
junk food, LESS meat
soda’s
11Supported by fundamental societal trends…
Universal association with a healthylifestyle
Healthy living Government / supermarkets / doctorspromotion
Rise of illness and obesity Trend away from processed towardsauthenticity
Fruit and vegetables well suited for quick preparation and/or on-
Convenience
Convenience the-go consumption
Fresh cut, snack, seedless, easy peel, ready-to-eat, shelf life,
Consumer increasingly time pressed ripening technology, e-commerce, frozen
Consumers increasingly monitoring meat consumption
Meat reduction Environmental impact and animal welfare concerns increasing
priorities
Rise of vegetarianism Supported by increased sophistication and taste of meat
alternatives incl. fruit and vegetables
Diversity
Versatile and core part of any meal
High availability, variety and flavour across a number of accessible
Fun in everyday cooking formats
Easy to cook, portionable and long-lasting
New formats / methods of cooking being popularised (e.g. by
Premium celebrity chefs)
Increasing mass availability of both traditional & exotic products
Increasing trend ofnovelty
Represents a sustainable alternative vs. meat
Sustainability Lower carbon footprint
Supporting environmentalconcern Lower use of water and land resources
12Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability
6 Financials
13We work for the top retailers in the world 14
Unique Selling Proposition towards our customers, building partnerships
Rationalise the chain Just in time delivery of
Remove unnecessary parts in the chain perishable goods
Manage
Help us be
complex
lean
supply chain
Offer
category Offer full
man. assortment
Support
Right product at the right time Availability
Increase profit / m² for customer Direct link Quality
to the
grower
Traceability
Certainty of produce
15An approach that requires several “building blocks”
Retailer USP
Vertical
Value Rationalise the chain
chain 5 Remove middle-men
Higher barriers to
entry
Higher switching costs
for customer
Fork to Field Partnership Traceability More derisking (e.g.
Product 4 Certainty of produce Cost plus)
knowledge
Value chain partner Right product at the right time
vendor consolidation 3 Increase profit / m² for customer
Committed volumes
Product supplier Availability
Push model retailer 2 Quality
Just in time delivery of
Logistics Tendering 1 perishable goods
16To build an integrated partnership
Grower
Grower Greenyard Retailer
Retailers Consumer
From Fork to Field
Finding global trends and
Matching supply-demand Developing F&V category
foodwaves
Joint sourcing Sharing data Innovation
Fresh and timely deliveries Customer solutions
17With the right assets and products
Via Pinguin Lutosa, H. Deprez acquires
Scana Noliko, a Belgian producer of
The Deprez family now has the preserved vegetables. He becomes CEO of
majority at Pinguin, which PinguinLutosa, with a turnover of EUR
‘02 acquires Lutosa, a potato 750m1
processing company ‘11 A
V. Deprez buys 33% of frozen
vegetable producers Pinguin, a A
publicly traded company ‘07 Pinguin Lutosa divests the potato processing
A
activities and acquires the frozen vegetable A
activities of Groupe d’Aucy. It is now called
‘13 Greenyard Foods. The Deprez family Greenyard acquires
increases its share to 42% mushroom specialist
Lutèce
A € A
UNIVEG acquires its Dutch
UNIVEG acquires UNIVEG acquires P V P
competitor Bakker Barendrecht, Empire World Trade Greenyard acquires
Alara and Katopé Merger UNIVEG, Greenyard
with a turnover of EUR 450m. and FAI ‘16 ‘17 ‘18 exotic specialist Mor Int.
UNIVEG acquires Seald Sweet UNIVEG doubles its turnover A P Foods and Peatinvest into
Greenyard, a unique leader
A A ‘15
A V ‘14 in fruit & vegetables
P ‘11 ‘12 ‘13
R ‘08
R ‘07 Greenyard acquires mushroom
‘06 P € substrate producer Mykogen
H. Deprez establishes UNIVEG ‘05 and divests its logistic activities
P I
UNIVEG divests its ready-meal
activities and logistic activities
in Bulgaria and herb farm in
Germany
‘87 ‘96 ‘98 in Russia The farming activities of UNIVEG are
carved out and regrouped in sister A €
company The Fruit Farm Group
‘83 UNIVEG becomes active outside of
Belgium
H. Deprez starts a mushroom farm Following a new acquisition, of -
in Belsele Atlanta from Chiquita, UNIVEG
now reaches a turnover of EUR
UNIVEG acquires the Italian 3bn
company Bocchi, with a turnover
of EUR 900m A
A
Peltracom acquires Norland
A
‘03 V Vertically integrated chain
H. Deprez incorporates his potting
A Acquisition R Retail Connections
soil activities in the Peatinvest
Holding € Disposal P Product specialism
- Carve-out I Infrastructure
18Consolidation further strengthens the leading suppliers
Divestments Consolidator Acquisitions Strategic agenda
• Extend global footprint in sales & sourcing
• Consolidate EU leadership in Fresh-cut veg
• Expand to international markets (North Am.)
Non-UK sites
• Expand in Fresh-cut fruit
• Consolidate leadership in Southern Europe
• Expand in exotics & Fresh-cut fruit
• Complete dense footprint in Germany
Fresh
• Offer full basket: fruits & Fresh-cut
Multiple fruit farms in LatAm • Vertical integration
• Diversification in geography & products (veg)
• Finding the right infrastructure, specialism and
retailer access
Frozen sites • Building partnerships
• Expand North American footprint
Long-Fresh
• Develop convenience & plant-based range
Canada
• Consolidate EU leadership in Frozen veg
• Expand to North American market & fruits
• Consolidate Brittany agri-food positions
• Leverage local brands
Frozen sites
• Diversify geographically (sales & sourcing)
• Offer full basket of frozen vegetables
1920
Sales (EURm)
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
0
500
Nomad Foods
(veg.activities)
Fresh
La Doria
(veg.activities)
Long Fresh
Conserve Italia
(veg. activities)
Triskalia - D'Aucy
(veg.activities)
* market share in Europe in fresh fruit and vegetables
Ardo
Del Monte Foods
Bonduelle
Resulting in a global market leader
Greenyard
Total Produce
3,2% market share*
Dole
Fresh Del Monte
Fyffes
Agrial (veg.division)
#2 EU
Fresh
#3 WW
The Greenery
Orsero Group
#1*
#5 EU
Prepared
Long tail
#2 EU
FrozenOffering us a strong and committed client base
Of top 10 clients have been a customer for more than 3
100% years
Average CAGR on top 10 client revenues over the past 2
2,6% years
c. € 274m Average size of top 10 client
21Result: Increase share of wallet through partnerships and consolidation
Proven partnership/ moving towards partnership Supplier consolidation ongoing, room for further growth
3 70 # Other suppliers
2017/18
31,9%
14,3%
7,2%
3,6%
3,4%
3,1%
2,7%
2,2%
1,3%
1,0%
1 2 3 4 5 6 7 8 9 10
2015/16
31,0%
15,6%
6,2%
1,4%
3,1%
3,1%
1,9%
1,9%
1,6%
1,1%
1 2 3 4 5 6 7 8 9 10
22Internal growth by following our customers in share of wallet
+5,9%
+5,6%
2015 average
2017 average
6,7%
7,1%
3,6%
3,8%
Top 10 Top 20
23Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability and innovation
6 Financials
24The rise of online retail in fruit & vegetables
Consumer spending on fruit & vegetables – Geography and Channel, 2030 (€ tn)
5% 7% 7% Online
8% 6%
16% 6%
11% Discounters
10% 18%
18% Hypermarkets
7% 20%
Supermarkets
5% 25%
15% Convenience
6%
4%
46% Specialised food stores and
32% traditional outlets
28%
Out-of-Home
N. America Europe World
€ 0,4tn € 0,8tn € 4,8tn
(8% of total World) (16% of total World)
25 Source: Euromonitor, Oliver Wyman research and analysisInternal growth by following our customers in new channels
Strong increase in online sales of F&V in Europe
99% 4,00%
2,90% 2,70%
2,60%
3,00% CAGR: 7,6%
98% 1,90% 2,10% 2,10% 2,10%
1,50% 2,00%
97%
1,00%
96% 0,00%
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 S1 2018 Q1 2018
Offline F&V Online F&V
The Dutch market as an example
€ 98,7m CAGR: 21,7%
€ 70,9m CAGR: 15,1%
€ 22,7m CAGR: 42,9%
2016 2017 2018 (till w32)
NL online market Albert Heijn Jumbo
26Greenyard already positioned for the future
5%
5%1%
1,6% Of total sales already online 23% 45%
€ 68m
2%
8%
11%
Netherlands Germany Belgium
Scandinavia UK France
Poland Pure Online Players
27Creating opportunities for Greenyard
Logistics Back – end (piecepicking) Know-how
28Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability and innovation
6 Financials
29Our food pyramid versus our environmental pyramid
Drink more water
H20
Vegetables, fruit, bread, Veg., fruit,
MORE LOW bread, nuts,
nuts, oil
oil
Fish, cheese, eggs, Fish, cheese, eggs, milk,
As little as milk, poultry poultry
possible
Butter,
Sugar,
junk food, LESS meat HIGH Butter, meat
soda’s
30Greenyard subscribes to the UN sustainability goals 31
By doing its part in 5 areas
Our healthy future for all Responsible and Innovation, Social, economic and To be a responsible
Ambition sustainable food technology and environmental supplier of
production infrastructure benefits throughout qualitative, healthy
securing access to the chain and and sustainable
food for all compliance with the products in close
highest ethical cooperation with its
standards partners
Our Healthy diet Water and energy-
efficiency in all of our
Stimulate innovative
techniques and products
Focused on social
standards, responsibility,
Sustainability is a focal
point
approach Strict food safety norms operations transparency and
Support R&D, aligned with traceabiity through With our partners that
Well being and Close the loop: efficient circular economic models cooperation with growers have the same conviction
development of employees waste management, and suppliers
responsible use of land and And in support of local
safeguarding biodiversity community projects
32Innovation crucial in sustainable partnerships 33
Consumer centric innovation
Sustainability
What’s for
Snacking
dinner
Healthy & Meat & Fish
tasty replacers
34Revisiting the investment thesis
Large Player with Market Leading Positions
In the most sustainable way Complex supply chain management
Consumption growth potential Unique Selling Proposition
Tapping into current health trend To our customers
Model of the future Grow
In consolidating landscape partnerships
35Agenda
1 Greenyard in brief
2 Our playing field
3 Strategic vision
4 E-Commerce
5 Sustainability
6 Financials
36Sales and REBITDA declined due to competition, weather conditions and Listeria
Sales REBITDA*
-3,5%
-4,1% -49,0%
1.707,3
1.647,9
42,6
-20,3%
349,4
334,9
25,7
21,7
20,5
H1 2018/19 H1 2017/18 H1 2018/19 H1 2017/18
€ 1.982,8m € 2.056,6m € 41,2m € 68,5m
Fresh
Long Fresh 16,9%
€ 1.982,8m 49% € 41,2m 51%
83,1%
37 *Unallocated REBITDA, mainly related to HQ costs and financial instruments, amounts to € 0,3m for H1 2017/18 and € -1,0m for H1 2018/19Taking into account normalisations, ‘continued’ net result amounts to € -4,4m
Normalised H1 2018/19 H1 2017/18
REBITDA € +3,5m € 41,2m € 68,5m
Depreciation and Amortisations € -32,1m € -30,6m
Non recurring items (continued operations) € -53,0m € -2,1m
- Listeria €+22,6m € -22,6m
- Goodwill impairment Long Fresh € +29,2m € -29,2m
EBIT * € -44,4m € 35,6m
Net finance income/cost € -15,3m € -18,5m
Income tax expense € +8,4m € -8,4m € -7,0m
Net result (continued operations) € -4,4m € -68,1m € 10,1m
Profit/loss Discontinued operations € -44,9m € 2,3m
Profit/loss for the period € -113,0m € 12,4m
38
*EBIT also includes net intercompany transactions between continuing and discontinued operations for € -0,2m for H1 2017/18 and € -0,4m for H1 2018/19Financial net debt increases due to non-recurrings, CAPEX overflow and NWC
Net Debt Evolution (incl. Horticulture) Leverage ratio
4,4
1,3
16,7 0,6 Clear focus to
0,4
deleverage in
64,7
40,2
2,8 coming
-48,8 23,3 periods
517,4
419,1
15,1
25,1
Overflow This year
Mar 2018 Sep 2018
CAPEX
Non-recurring/non-
Taxes
Finance expenses
NFD Sept '18
REBITDA
Working capital
Other
NFD Mar '18
Assets/proceeds sales
cash EBITDA items
Purchases of fin.
LTM € 140,2m € 117,8m
REBITDA
39Our growth trajectory
Sales CAGR REBITDA CAGR
18,4%
2,7%
1,2%
-1,7%
Mar 2014-2018(1) Mar 2019-2021(2) Mar 2014-2018(1) Mar 2019-2021(2)
(1) March 2014-2018 CAGR calcutions exclude Horticulture segment for a comparable basis with Mar 2019-2021
calculations
(2) March2019-2021 CAGR is based on Analyst consensus numbers and should not be in any way taken as a forecast or
40
estimate of the companyContact
Dennis Duinslaeger
Investor Relations
Dennis.duinslaeger@greenyard.group
T: +32 (0) 15 32 42 49
M: +32 (0) 477 90 39 98You can also read
