04.11.2013
1
Expansion: Conquering growth markets
Emmi Investor DayXabier Aristi, CEO Kaiku Corporación Alimentaria
Emmen, 5 November 2013
General overview
Spain
Chile
Tunisia
Conclusions
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Our origins
60 years of history
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 3
Basics Regional
100%
2000Turning point
New vision
Industrial
Innovation National / InternationalMarket
Strong market orientation on an international level
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 4
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Net sales development (in EUR million)
Steady growth supported by international expansion
Sales, Kaiku GroupIn EUR million
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 5
231 242263
346
2009 2010 2011 2012
Chile, Pitrufquen2000
Chile, Loncoche2007
Túnez, Mahdia2011
Spain, Pamplona1975
Production infrastructure
Most important production sites
Page 6Emmi Investor Day, 5 November 2013, Xabier Aristi
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Milk market trends
Growth in consumption of dairy products
Above-average growth potential in emerging countries
Page 7Emmi Investor Day, 5 November 2013, Xabier Aristi
Source: OECD-FAO Agricultural Outlook 2011-2020© OECD/FAO 2011
020406080
100
Traditional Retail
0
10
20
30
Mercadona Carrefour DIA Eroski
Spain
Chile
Tunisia
0
10
20
30
40
Walmart Cencosud SMU Falabella
Market overview 2013
Modern retailers market sharesPlayers beside Kaiku
46,1 million
16,5 million
10,7 million
Page 8Emmi Investor Day, 5 November 2013, Xabier Aristi
(Shops) (Supermarkets)
Modern retailers market shares
Modern Retail vs Traditional
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General overview
Spain
Chile
Tunisia
Conclusions
Innovation 36%
Branded regional
milk32%
Yogurt & derivs18%
Others14%
Kaiku Spain: key facts
• EUR 168 million net sales in 2012• Strong focus on innovation and brand
concepts• No. 1 for branded regional milk in
Northern Spain• No. 1 for branded chilled coffee drinks and
for lactose free dairy products in Spain
Product portfolio
Strong position in Northern Spain
Page 10Emmi Investor Day, 5 November 2013, Xabier Aristi
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2009 2010 2011 2012
2009 2010 2011 2012
2009 2010 2011 2012
• Kaiku is the leading regional brand• Trend towards local milk• Kaiku in the heart of the Basques
• Growing market• Kaiku is the leading brand• New channels to be opened up
• Growing market• Kaiku is the leading brand• Trend towards light/healthy food
Promising segments despite challenging market environment
Strengthen no. 1 position for Caffè Latte, lactose-free and regional branded milk
2% 3%
72%
53%
92%43%
17%17%
4%1%
0,1%-5%
*** high potential ** fair potentialFigures: value increase in %
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Development of Kaiku compared to the market
The development of Kaiku in Spain is clearly above the market average
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 12
Data: IRI Spain. Dairy market evolution in euros 2009-2012,sales growth rates compared to previous years
-8
-6
-4
-2
0
2
4
6
8
Dairy brands Kaiku
-2.1
5.1
0.2
2.9
-0.7
-5.5
%
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Measures in Spain
1
2
3
Strengthen added-value concepts which are more robust in the current environment
Develop a platform of innovative concepts
Strengthen regional leadership
Expand convenience market
Introduce operational excellence initiatives and exploit synergies with Emmi
4
5
Focus on added-value concepts, manage costs carefully
Page 13Emmi Investor Day, 5 November 2013, Xabier Aristi
General overview
Spain
Chile
Tunisia
Conclusions
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Chile: macroeconomic key data
Population 16.5 millionPopulation growth approx. 1 %GDP USD 268.413 mnAnnual GDP growth 5.6 %GDP per capita USD 15,416 Inflation 1.5 %
Stable environment, growing middle class segment
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 15
2001 201320112003 20092002
Surlat: our brand in Chile
§ EUR 94 million net sales§ 150 million litres of milk processed§ 650 employees
2004
§ Complete dairy range§ Good innovation platform § Trusted partner for the retailers§ Producers incorporated in the value chain
Dynamic development towards added value products
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35%
25%
24%
11%5%
Chile: a promising market
Milk Flavoured drinks Probiotics CholesterolLactose-free Cheese
*** high potential ** fair potential
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 17
2009 2010 2011 2012
Processing of milkData: ODEPA (2012)
3%16%
82%
21%Volume increase of net sales, compared to previous year
Surlat (Lactosa free video)
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Measures in Chile
1
2
Maintain a solid platform of basic dairy products
Introduce operational excellence initiatives
Progressive implementation of innovative added-value products
Develop new distribution channels
3
4
Page 19Emmi Investor Day, 5 November 2013, Xabier Aristi
General overview
Spain
Chile
Tunisia
Conclusions
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Tunisia: macroeconomic key data
Population 10.7 millionAnnual population growth 1.30 %GDP EUR 35,522 mnAnnual GDP growth 3.60 %GDP per capita EUR 3.220 /pers.Inflation 5.6 %
Small country with a high affinity for sweet products
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1998 201320122007 201120102000
§ EUR 85 million net sales§ 110 million litres of milk processed§ 578 employees
§ Well-established brand§ Modern and passionate image§ Appreciated for its professionalism and
high quality§ Well-trained and effective team
Vitalait: our brand in Tunisia
Dynamic development into an appreciated brand
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Danone62%
Vitalait20%
Other18%
2009 2010 2011 2012
The potential of Vitalait
34%14%
16%14%Volume increase of net sales,
compared to previous year
Steady growth, solid no. 2 position
Page 23Emmi Investor Day, 5 November 2013, Xabier Aristi
Dairy market shareData: Nielsen 2012
Branded milk Flavoured drinks Desserts, Petit Lait and WellbeingYogurt
Kefir
Vitalait (Bifi video )
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 24
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1
2
Further optimise product portfolio from basic milk towards more added value products.
Introduce new product range: desserts, additional variety of yogurts.
Strengthen the relationship with the farmers to secure sourcing.
Increase distribution density, develop new geographic areas.
3
Measures in Tunisia
4
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 25
General overview
Spain
Chile
Tunisia
Conclusions
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Summary
§ Kaiku is accelerating the internationalisationof the company
§ Focus on emerging markets with above-average growth potential
§ Solid number 2 positions; leader in severalgrowing, strategically important categories
§ Expansion of the product portfolio towardsmore added-value products is on its way
Emmi Investor Day, 5 November 2013, Xabier Aristi Page 27