Fazer company presentation gb_spiba

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Look@Fazer

SPIBA visit, July 27, 2011

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Place for a picture

Size: Height 9,80 cm Width 12,50 cm

Fazer Group in brief

• Family owned company established in 1891

• Food services, bakery and confectionery products

• Operates in 8 countries

• Turnover for 2010 over 1.5 billion euros

• 50 per cent of the turnover outside Finland

• Number of personnel approximately 16 500

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Fazer Group

Oy Karl Fazer Ab

Fazer Food Services

• The leading food service company in the Nordic and the Baltic countries

• Almost 1400 restaurants in the Nordic countries, Estonia, Latvia and Russia

• Circa 360 000 meals daily

• Turnover 575 M€ (2010)

• Number of personnel 7 500

Fazer Bakeries & Confectionery

• Finland's leading bakery and confectionery company, one of the leading companies in the Baltic Sea region and Russia.

• 21 bakeries in Finland, Sweden, Estonia, Latvia, Lithuania and Russia

• The confectionery factories are located in Finland: Vantaa, Lappeenranta and Karkkila

• Turnover 938 M€ (2010))

• Number of personnel ca 9 200

Fazer Group:Turnover 1513 M€ Personnel 16 500

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Taste sensations since 1891

1891Karl Fazer opened a confectionery at Kluuvikatu 3 in Helsinki

1894The manufacture of chocolate and confectionery began

1908The Fazer trade mark was registered

1922Fazer Blue was born

1924The manufacture of biscuits began

1930Restaurant business was started at Kalastajatorppa

Fazer has a long history in creating taste sensations

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•1952Retailing of bread began1958•Fazer acquired the Oululainen bakery•1955•Construction work for Fazer's factory started in Vantaa•1971•The bakery in Vantaa was completed•1976•Fazer Catering was established (Amica since 1988)•1997•The Pick & Mix concept was expanded into Candyking division•1997•Fazer acquired a share of Hlebny Dom bakery in St. Petersburg

Industrial bakery operations started in the 50s,followed by catering services in the 70s.

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2000Cloetta Fazer AB was formed

2001Fazer acquired the Danish Wip Personalerestauranter A/S and Fazer Bakeries started operations in Latvia and Lithuania

2002Fazer acquired Lövångerbröd AB. The remaining shares in Fazer Biscuits were sold. Fazer Amica started in Norway.

2003Fazer acquired a majority in the catering company Adviso Meny AS. A new bakery was opened in Lappeenranta.2004Fazer built up a new operations model and renewed its brand strategy.2005Fazer acquired the Zvezdny bakery in Moscow.

In early the 21st century, the business expanded and became more international

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2006Fazer acquired the St. Petersburg -based AbelaServices CIS, SIA NokrokoA in Latvia andKantineRingen As in Norway.

2007The bakery business in Russia was separated toform its own division. Fazer opened a new servicekitchen, the first of its kind, in Tallinn.

2008Cloetta Fazer AB (publ) was split up and FazerConfectionery was integrated into Fazer Group.

2010Fazer restructured its organisation. Four divisions were merged into two business areas: Fazer Bakeries & Confectionery and Fazer Food Services.

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Strong Market Positions Across the Region 2010 (estimate)

FinlandFF # 1. (53 %)FB # 1. (33%)FC # 1 (39%)

SwedenFF # 2. (28 %)FB # 2. (28 %)FC # 4. (8%)

DemarkFF # 2. (15 %)FC # 11. (2%)

NorwayFF # 4. (10 %)FC # 11. (2%)

The Nordic countriesFazer Food Services - 1. (28 %)Fazer Bakeries– 1 (20%) (fresh bread)

Fazer Confectionery – 3 (11%)

Baltic countriesFB # 3. (16%)FC # 8. (4%)

Russia # 1. (7%)St Pete # 1. (35%)Moscow # 2. (~13%)

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Turnover outside Finland, M€

316 365

225

19322962

54

55

7075

81

1920

23

220

596658

752

0

100

200

300

400

500

600

700

800

2008 2009 2010

Norway

Denmark

Baltic

Russia

Sweden

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Turnover by country

50

24

15

5 2 211Finland

Sweden

Russia

Denmark

Norway

Estonia

Latvia

Lithuania

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Mission, values, vision and strategy

Our mission is to create taste sensations

”We must always exceed our customers expectations.” Karl Fazer

Values• Passion for customers

– We strive to exceed customers’ expectations • Quality excellence

– Responsibility in everything we do • Team spirit

– Cooperation and respect for each other

Vision• Fazer is the first choice

Strategy– grow our business profitably by building on our leading brands– be the most attractive employer in the branch– be the first choice for our stakeholders

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What makes Fazer unique?

Best brands

Internationalexpansion

Sustainable#1/2 positions

Run as ”One company”

Most admiredemployer

• One of few Finnish companies thathas successfully expanded to Russia

• #1 in Finnish bakery, confectionery and foodService• #1 in St Petersburg bakery and Moscow premium bakery• #2 in Swedish bakery and food service• One Fazer culture

• Common values• Common support functions• Core functions increasingly common within product and service businesses

• Genuine, sustainable value – ”creating taste sensations”• The most respected brand in Finland

• Finland’s #1employer among university business students

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Unique Business and strong Brand Portfolio

ConfectioneryBakeries Restaurantsand concession

Food Services

Fazer Group

Concepts

Fazer brand-related Local brands Local brands

http://www.fazergroup.com/templates/Fazer_CountryStartPage.aspx?id=3484&epslanguage=RU

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Fazer - a highly valued brand

• Fazer brand is one of the most recognised• brands in Finland and very well-known in

the countries where Fazer operates

• A strong brand creates value by

– affecting emotions

– telling stories

– giving trust

• Fazer also stands for a lot of other things

– innovations in both products and concepts

– forerunner in marketing

– excellent quality

• Every Finn has a relationship with Fazer

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Fazer “House of Brands”

Corporate brand

Restaurant, café and contract catering brands

Bakery product umbrella brands

Chocolate and confectionery umbrella

brand

Product brandsLocal concepts

(Bistro Amica, Hava Java, Wip, Kantineringen)

Product brands

http://www.fazergroup.com/templates/Fazer_CountryStartPage.aspx?id=3484&epslanguage=RU

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Great work tastes

• Honest, high quality work with attractive products and services

• Is in line with our mission, vision, values and brand promise

• Great work has always been honoured at Fazer and it is done in good team spirit by exceeding our clients expectations

• It ”tastes” because our vision is to be the ”best choice”

• Fazer values its employees. Fazer is a family-owned company, where the work is done on a long term perspective

• Fazer is a forerunner in many areas, and at Fazer we continuously develop ourselves and we accept diverseness

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Skilled and committed professionals guarantee high quality

• By implementing the principle of continuous improvement, we make sure that professional skills and attitudes towards work are on a high level. Good leadership is needed for this.

• The high level of professional skills is secured through skill mapping. Vocational examinations play an important part in this.

• An examination in management is in use for management development, as well as the internal FAST & Fazer Way management training programs.

• Significant investment in project training.• Numerous small training sessions are

essential in the improvement of processes and ways to work. Web-based learning is becoming increasingly important.

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Employees by country, %

39

20

24

62

5 3 1Finland

Sweden

Russia

Denmark

Norway

Estonia

Latvia

Lithuania

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Corporate responsibility is a natural part of Fazer’s operations

• Corporate responsibility has always been part of Fazer’s daily business operations. It is a vital part of Fazer’s corporate culture and plays a significant role in all business development.’

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Ethical principles are the foundation of the operations

• Fazer’s ethical principles are based on the Group’s values and the international principles of the UN Global Compact initiative.

• The ethical principles guide Fazer’s employees in their everyday work and also define the Group’s ethical responsibility as an employer and as a business.

• Fazer’s ways of operating are mainly based on trust and unwritten rules, but because of the Group's rapid growth and internationalisation, the operating principles must be documented.

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Corporate responsibility goes beyond our own operations

• Corporate responsibility is part of Fazer’s corporate culture, daily work.

• Work is guided by the corporate responsibility policy, ethical principles, environmental policy, and other management practices.

• Fazer monitors the quality, origin and responsibility of the supply chain of the materials and ingredients – Fazer expects its partners to operate in a responsible manner.

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Corporate responsibility at Fazer

23 Presenter's Name Surname 11.04.2323


• Fazer is the leading bakery company in Finland and Finland’s leading and Sweden’s second largest bakery company and one of the leading ones in the Baltic region and Russia

• Bread and pastries are manufactured in Finland, Sweden, Estonia, Latvia, Lithuania and Russia

• Brands: Fazer, Oululainen, Skogaholm, Hlebnyi Dom, Druva, ja Gardesis

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• Fazer is Finland's leading confectionery company and a strong player in the Baltic Sea region

• Confectionery factories are located in Finland: in Vantaa (chocolate), Lappeenranta (sugar confectionery) and Karkkila (chewing gum)

• Strong international confectionery brands, for instance Karl Fazer, Geisha, Dumle, Tutti Frutti, Marianne, Tyrkisk Peber, Pantteri and Xylimax

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Fazer Bakeries & Confectionery in figures

• Turnover 938 M€ (2010)• 62 % per cent of the Group's turnover

• 21 bakeries and a mill• Personnel ca 9 200• Bakery products are exported to over 15 countries• Confectionery products are exported to 27 countries

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Fazer Bakeries & Confectionery in Russia 2010

• Turnover 229 M€

• 15 % per cent of the Group’s turnover from Russia

• Personnel 3 966

• Highlights

– An increased market share in the Moscow area through improved logistics, strong sales and brand-new products

– Volume growth and good delivery reliability in a challenging operating environment

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Our products

Fazer Russia is Active in 4 segments: Fresh bread (Over 100 SKUs)

Long shelf life bakery products (50 SKUs - rusks, hard bagels, ginger bread, crisps)

Frozen bread & coffee-bread, pizza, dough (over 120 SKUs)

Confectionary (chocolate & sugar candies)

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Fazer in Russia: Hlebny Dom

Hlebny Dom

Smolenskaya production site

Murinskoe production site

Vasileostrovsky production site

Zvezdny production site

BKK Neva

production site

MoscowSt. Petersburg

Centralized functions(based at Smolenskaya site)

Acquisition in 1997

Acquisition in 2002

Acquisition in 2003

Acquisition in 2009

Acquisition in 2005

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Fazer Food Services

• Fazer Food Services is the leading contract catering company in the Nordic countries, offering customers delicious food and tailor-made service solutions

• Services include private and public sector personnel restaurants, student restaurants, café-restaurants, restaurants at conference and meeting venues as well as food services for schools and public service organisations. Fazer Food Services offers also catering services for special occasions for its customers.

• Fazer Food Services’ brands are Karl Fazer, Fazer, Amica and Wip, among others.

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Fazer Food Services in figures

• Turnover 575 M€ (2010)• 38 % per cent of the Group's turnover

• Personnel 7 500• Almost 1 400 restaurants in the Nordic

countries and Russia

• Ca 360 000 meals daily

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