Annual General Meeting of Shareholders - Nutreco · 2016-06-30 · Nutreco update Financial results 2010 Market developments Strategy Strategic agenda Excellent results 2010 ‐a

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Annual General Meeting of Shareholders

Amersfoort, 28 March 2011

Disclaimer

The information contained herein shall not constitute or form any part of any offer or invitation to subscribe for, underwrite or otherwise acquire, or any solicitation of any offer to purchase or subscribe for, securities including in the United States, Australia, Canada or Japan.

The information contained herein is not for publication or distribution into the United States, Australia, Canada or Japan. Neither this announcement nor any copy of it may be taken or distributed or published, directly or indirectly, in the United States, Australia, Canada or Japan.

The material set forth herein is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale into the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or an exemption from registration. The securities of the company described herein have not been and will not be so registered. There will be no public offer of securities in the United States, Australia, Canada or Japan.

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1. Opening and notifications

NUTRECO N.V.Annual General Meeting of Shareholders

28 March 2011

1.1 Opening


28 March 2011

3

1.2 Notifications


28 March 2011

2. Report by the Supervisory Board and by its sub‐committees for the 2010 financial year


28 March 2011

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3. Report by the Executive Board for the 2010 financial year


28 March 2011

Agenda

Nutreco update

Financial results 2010

Market developments

Strategy

Strategic agenda

5

Executive Board of Nutreco

Executive Board Executive Board

CEO

Wout Dekker

CEO

Wout Dekker

COO Aquaculture

Knut Nesse

COO Aquaculture

Knut Nesse

CFO

Cees van Rijn

CFO

Cees van Rijn

COO Animal Nutrition

Jerry Vergeer

COO Animal Nutrition

Jerry Vergeer

Nutreco to place Dutch pension scheme with AEGON

Nutreco will place the pension scheme for its Dutch subsidiaries with insurer AEGON Levensverzekering NV as of 1 January 2011

One of the provisions is that AEGON will be guaranteeing 100% of the nominal pension benefits. Nutreco has also agreed to increase the employer's contributions over the coming five years so that the pensions can be indexed in future

Conditional to approval from its supervisor De Nederlandsche Bank, Stichting Nutreco Pensioenfonds will be transferring its obligations and assets and subsequently wound up

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Agenda

Nutreco update


Market developments

Strategy

Strategic agenda

Excellent results 2010 ‐ a strong focus on innovation

Revenue 2010 EUR 4,939.7 million; increase of 9.5%

EBITA before exceptional items increased with 27.0% to EUR 222.5 million

EBITA in Premix and Feed Specialties 12.1% higher than in 2009

EBITA in Fish Feed up 38.9% in a solid aquaculture market environment

Strong recovery EBITA Compound Feed Europe

Strong cash flow from operating activities

Dividend proposal of EUR 1.50 per share

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‐4.7Income arising from settlements

‐‐3.0Acquisition related costs

‐7.5‐4.0Impairment charges

11.2‐Negative goodwill

‐5.2‐23.3Total exceptional items

2.9‐1.0Other

38.9%66.492.2Fish Feed

12.1%70.478.9Premix and Feed Specialties

27.0%175.2222.5Operating result before exceptional items

4.6%21.822.8Animal Nutrition Canada

‐11.8‐20.0Restructuring

‐17.1%‐19.3‐22.6Corporate

‐22.7%34.326.5Meat and other

Operating result continuing operations

Compound Feed Europe

EUR x million Delta20092010

17.2%170.0199.2

1.624.7

Operating result (EBITA) by segment

Net result and EPS

1.4%34.635.1Average number of shares outstanding (million)

17.6%157.9185.7EBIT

1.42.2Share in results of associates

‐13.3%‐31.6‐35.8Net financing costs/income

12.113.5Amortisation

17.2%170.0199.2EBITA

21.5%93.0113.0Profit for the period

‐12.7%‐34.7‐39.1Income tax expense

EPS continuing operations (EUR)

Depreciation

EBITDA

EUR x million Delta20092010

21.5%2.613.17

52.756.2

14.7%222.7255.4

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Balance sheet

606.0674.7Trade receivables

232.6230.8Cash and cash equivalents

13.821.4Other current assets

355.9436.8Inventories

89.588.1Other non‐current assets

2,125.32,363.7Total

Intangible assets

Fixed assets

Assets (EUR x million) 31.12.0931.12.10

310.4347.3

517.1564.6

2,125.32,363.7Total

18.26.4Provisions

84.795.6Other liabilities

826.21,004.0Trade payables

455.5438.1Interest bearing debt

Equity

Equity & liabilities (EUR x million) 31.12.0931.12.10

740.7819.6

‐222.9

135.7

31.12.0931.12.10

‐207.3Net debt

107.5Net working capital

Nutreco dividend 2010

Nutreco policy is to pay out a dividend in the range of 35‐45% of the total result attributable to holders of ordinary shares excluding impairment and the result on disposed activities

Dividend 2010 of EUR 1.50 (2009: 1.32) is maximum payout percentage of 45%

In August Nutreco already distributed an interim dividend of EUR 0.50

Final dividend of EUR 1.00 can be received in cash or in ordinary shares

Ratio between the value of stock dividend and cash dividend will be determined on 15 April 2011 after closing of the stock market based on the average weighted price during the last three days of the option period (13, 14 and 15 April 2010)

Dividend will be payable to shareholders on 21 April 2011

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Agenda

Nutreco update


Market developments

Strategy

Strategic agenda

2010: Food crisis back in the spotlight

2008

2009

2010

Food crisis as a leading global theme

Financial crisis takes over the headlines

Food crisis back in the spotlight

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Soft commodity prices are increasing again

Political and speculation risk

Drought Russia and Argentina

Low stock levels world wide

Flooding China and Australia

Developments 2010‐2011

Volatile commodity

prices

‐

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011

Fish meal Fish oil(USD/Mt)

0

200

400

600

800

2008 2009 2010

Soybeans WheatUSD/Mt

7bn to 9bn

Developments 2030 ‐ 2050

Demand for animal protein is surging

Population growth

50% to 70%

400mn to 1.2bn

40kg to 52kg

Urbanisation

Middle class growth

Western diet

2030

2030

2050

2050

Eggs

Meat

Milk

Aquaculture

0%

100%

200%

300%

400%

500%

1970 1975 1980 1985 1990 1995 2000 2005 2010E

Index: 1970 = 100%

Animal Protein Production Development 1970 ‐ 2010E

Changes in demographics lead to a surge in protein, especially in emerging markets

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The challenge: creating sustainable, innovative value chains

Cooperate Communicate Innovate

Sustainability progress made in 2010

Reduced carbon footprint of own operations by 22% in 2010

-22%

Organised AquaVision 2010 to stimulate cross chain cooperation

Set up sustainable vendor policy and specific policies for marine products, soya and palm oil

Sustainable Action Plans approved and in operation

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Successfully launched MicroBalance™ and assessed its sustainability merits

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Agenda

Nutreco update


Market developments

Strategy

Strategic agenda

Attractive growth potential in feed production in emerging markets

CAGR ’00‐’10 18,5%‐0,5%2,6%‐0,1%2,2%2,0%6,1%6,9%0,9%

Source: Feed International January 2011, preliminary estimates for 2010

155.3

108.9

62.3

25.6 21.4 19.9 14.6 14.0 11.0

USA China Brazil Mexico Spain Canada Russia Netherlands Vietnam

(xMt)

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Nutreco’s ambition

Nutreco has the ambition to become the global leader in animal nutrition and fish feed that delivers innovative and sustainable feed solutions

Species where we can differentiate

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Changing geographies3

Innovative feed solutions

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Nutreco’s strategy

Fish feed

1

Capitalise on leading fish feed positions and diversify into new regions and feed for other fish species and shrimp

Agri focus markets

2

Proactively pursue significant positions in Brazil, Russia and China

Agri home markets

3

Develop sustainable businesses in Western Europe and North America

Products

4

Further development of feed additives by innovation and acquisitions

SpecialtiesSpecialties

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Vietnam is springboard for Skretting fish feed in South East Asia

Aquaculture in Vietnam

Vietnam is the largest player in aquaculture, especially in shrimp,

after China and India

Highest estimated average annual GDP growth of 8.8%

Government pro‐actively supports development in aquaculture

Ample room for Nutreco’s R&D and expertise to further growth

and professionalization of the aquaculture sector

Acquisition of Tomboy Aquafeed

Tomboy Aquafeed is no. 4 in Vietnam, specialized in fish

and shrimp feed

Two factories near Ho Chi Min City and in the Long An Province

300 employees

EUR 20 million investment in new factory in Russia

Favorable conditions in Russia’s agricultural sector

Macro‐economic conditions continue to favour meat demand

Largest country on earth with big arable area

Russia is the 5th largest meat producer in the world

Aim to become self‐sufficient is a key driver

Investment in Voronezh, Russia

Investment in agricultural Voronezh region, 350 km from Moscow

Integrated premix and young animal feed factory to serve the whole spectrum of animals

Investment of EUR 20 million

Expected to be operational in 2012 (Q2)

Voronezh

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Nutreco acquired fish and shrimp feed company in China

Aquaculture in China

China is the world's number one in aquaculture

Targeted fish feed market of 8.6 mio tonnes with 10% growth in

last five years

Domestic demand for seafood is strong

Ample room for Nutreco’s R&D and expertise to accelerate

progress of the aquaculture sector

Acquisition of Shihai Feed Co.

• Shihai Feed Co. Ltd. located in central Pearl River Delta

• New 150,000 MT plant, 100,000 MT production high end feed

• Purchase price EUR 40 mio, revenue in 2010 of EUR 65 mio

• Acquisition subject to approval by authorities

Zhuhai

Nanta ‐ Cargill integration in Spain

Cargill integration according to plan

brand replaced by brand

Purina brand for dealers changed over to Nanta

EBIT contribution in 2011

Total restructuring cost in 2010 EUR 16 million

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Breakthrough new concept Microbalance™

MicroBalance™ substantially lowers fishmeal levels in fish feed formulations without deteriorating feed performance, fish welfare or end product quality. This leads to increased raw material flexibility and is a boost for sustainability

MicroBalance™

Fish protein in 1kg salmon produced has been reduced from 3.5kg in 1990 to below 1kg in 2010

Fish farmers will become net producers of fish protein

Innovations in feed additives

Fysal® Fit‐4 poultry is an innovative way to combat Salmonella. This multi‐disciplined product contains four different barriers that reduce or inhibit the activities of Salmonella in the crop, stomach and throughout the intestine

Fysal®

Fit‐4 Poultry

Fysal Fit‐4 targets large integrations mainly in Europe (due to EU legislation push)

Fysal Fit‐4 poultry is an addition to the Fysal anti‐Salmonella product line

Fysal range is growing since the innovation was introduced in April 2010

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Agenda

Nutreco update


Market developments

Strategy

Strategic agenda

Strategic agenda

We want to achieve growth through:

Capitalise on leading fish feed positions and diversify by expanding in new regions and into feed for other fish species and shrimp. This includes Asia and Latin America

Proactively pursue significant positions in agri focus markets China, Brazil and Russia

Develop sustainable businesses in agri home markets Western Europe and North America

Further development of feed additive activities by innovation and acquisitions

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4. 2010 Financial Statements and dividend


28 March 2011

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4.1 Approval of the 2010 Financial Statements


28 March 2011

4.2 Payment of dividend


28 March 2011

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5. Discharge


28 March 2011

5.1 Discharge of the members of the Executive Board


28 March 2011

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5.2 Discharge of the members of the Supervisory Board


28 March 2011

6. Appointment of auditor to audit the 2012 Financial Statements


28 March 2011

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7. Designation to issue (rights to) ordinary shares

Nutreco N.V.


28 March 2011

7.1 Proposal to designate the Executive Board as the corporate body authorised – subject to the approval of the Supervisory Board – to issue ordinary shares and to grant rights to subscribe for ordinary shares as provided for in article 8 of the Company’s Articles of Association for a period of 18 months


28 March 2011

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7.2 Proposal to designate the Executive Board as the corporate body authorised – subject to the approval of the Supervisory Board – to restrict or to exclude pre‐emption rights entitled to the shareholders as provided for in article 9 of the Company’s Articles of Association for a

period of 18 months


28 March 2011

8. Authorisation to buy back ordinary sharesNutreco N.V.

Proposal to authorise the Executive Board – subject to the approval of the Supervisory Board – to buy‐back the Company’s own ordinary shares as provided for in article 10 of the Company’s Articles of Association for a period of 18 months


28 March 2011

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9. Composition of the Supervisory Board


28 March 2011

9.1 The end‐of‐term resignation of Mr J.M. de Jong as member of the Supervisory Board and his re‐appointment


28 March 2011

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9.2 The end‐of‐final‐term resignation ofMr R. Zwartendijk as chairman and member of the Supervisory Board


28 March 2011

10. Composition of the Executive Board

The appointment of Mr G. Boon as member of the

Executive Board


28 March 2011

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11. Any other business


28 March 2011

12. Closing


28 March 2011

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Annual General Meeting of Shareholders

Amersfoort, 28 March 2011

Documents

Annual General Meeting of Shareholders - Nutreco · 2016-06-30 · Nutreco update Financial results 2010 Market developments Strategy Strategic agenda Excellent results 2010 ‐a