COMPANY PRESENTATION STAR CONFERENCE MILAN 2008, 5 th March

Transcription

1 COMPANY PRESENTATION STAR CONFERENCE 2008 MILAN 2008, 5 th March

2 AGENDA 1. The group at a glance 2. Market overview 3. Financials 4. Share price 5. Goals and strategies STAR CONFERENCE 2008 Pag. 2

3 SPEAKERS LUIGI LUZZATI Chairman of Centrale del Latte di Torino & C. S.p.A. RICCARDO POZZOLI Chief Executive Officer of Centrale del Latte di Torino & C. S.p.A. NICOLA CODISPOTI Sales and Marketing Director of Centrale del Latte di Torino & C. S.p.A. VITTORIO VAUDAGNOTTI Chief Financial Officer of Centrale del Latte di Torino & C. S.p.A. STAR CONFERENCE 2008 Pag. 3

4 1. THE GROUP AT A GLANCE STAR CONFERENCE 2008 Pag. 4

5 1. THE GROUP AT A GLANCE MISSION Providing the Italian market with the highest quality milk and milk-derivatives products by exploiting our interregional network. STAR CONFERENCE 2008 Pag. 5

6 1. THE GROUP AT A GLANCE GROUP IDENTITY Since 1950 Centrale del Latte is the leading brand of milk in Turin. During the years the Group experienced a day by day growth becoming a multiregional company active in the production and distribution of milk, milk derivatives and other fresh products SHAREHOLDERS Source: Centrale del Latte di Torino & C. S.p.A. 36.2% 51.0% 6.9% 5.9% High-quality production, strong diversification strategy and effective distribution network enabled the Group to become a leading regional player, always aiming to preserve its daily and dairy relationship with its customers Finanziaria Centrale del Latte di Torino S.p.A. Lavia S.S. Other family groups Free float STAR CONFERENCE 2008 Pag. 6

7 1. THE GROUP AT A GLANCE EQUITY STORY Source: Centrale del Latte di Torino & C. S.p.A. Centrale del Latte di Torino starts its activity Market liberalization Listing on the Italian Stock Exchange and introduction of PET packaging for dairy milk Acquisition of Centrale del Latte di Vicenza Start of production activity in the new facility in Vicenza Anni Introduction of UHT milk and TETRAPAK packaging Acquisition of Centro Latte Rapallo Acquisition of the 40% of Frascheri and admission to the STAR segment of the Italian Stock Exchange Acquisition of Salads & Fruits STAR CONFERENCE 2008 Pag. 7

8 1. THE GROUP AT A GLANCE GROUP STRUCTURE Source: Centrale del Latte di Torino & C. S.p.A. 100% 85.4% 40% 83.7%* 40% 25% GPP GENOVA PASTA E PESTO S.p.A. BELGRAVIA s.r.l. * Stake increased in July 2007 STAR CONFERENCE 2008 Pag. 8

9 1. THE GROUP AT A GLANCE AN INTERREGIONAL POLE Vicenza Turin Casteggio 4 Carmagnola 1 Rapallo3 Bardineto 2 1 Turin province, Piedmont 2 Savona province, Liguria 3 Genoa province, Liguria 4 Pavia province, Lombardy STAR CONFERENCE 2008 Pag. 9

10 1. THE GROUP AT A GLANCE A FULL SET OF PRODUCTS Source: Centrale del Latte di Torino & C. S.p.A. FRESH AND UHT MILK YOGURT AND DESSERT NEW NEW NEW NEW NEW NEW NEW NEW STAR CONFERENCE 2008 Pag. 10

11 1. THE GROUP AT A GLANCE OTHER PRODUCTS Source: Centrale del Latte di Torino & C. S.p.A. CHEESE READY-TO-EAT SALAD NEW EGGS FRESH PASTA AND PESTO SAUCE NEW NEW NEW STAR CONFERENCE 2008 Pag. 11

12 1. THE GROUP AT A GLANCE 2007 SALES BREAKDOWN Source: Centrale del Latte di Torino & C. S.p.A. By region By product By distribution channel 3% 16% 12% 24% 4% 48% 7% 46% 51% 8% 37% 25% 19% Piedmont Liguria Veneto Other regions Fresh milk UHT milk Yogurt Ready-to-eat salad Unbottled milk and cream Other packed products Large-scale distribution (1) Shops (2) Others (1) Nearly point of sale daily served (2) Nearly point of sale daily served STAR CONFERENCE 2008 Pag. 12

13 2. MARKET OVERVIEW STAR CONFERENCE 2008 Pag. 13

14 2. MARKET OVERVIEW SPOT MILK PRICES Source: Elaboration on CLAL data ( Spot milk minimum and maximum monthly prices (1) ( February 2008) Trend of spot milk monthly prices (average between minimum and maximum) (1) ( February 2008) Prices in euro for 100 litres Month min max min max min max min max January February March April May June July August September October November December Prices in euro for 100 litres Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec (1) Spot prices of milk bulk in the tank, free destination. Prices are fixed by the Commission reporting to the Lodi Chamber of Commerce. STAR CONFERENCE 2008 Pag. 14

15 2. MARKET OVERVIEW FARM-GATE RAW MILK PRICES Source: Elaboration on CLAL data ( Farm-gate raw milk monthly prices (1) ( March 2008) Trend of the farm-gate raw milk monthly average price (1) ( March 2008) Prices in euro for 100 litres Month January February March April May June July August September October November December Prices in euro for 100 litres Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec (1) Prices established in the Region of Lombardy. Given the substantial volume of milk produced, the prices fixed in Lombardy are considered as points of reference for negotiations in other locations. STAR CONFERENCE 2008 Pag. 15

16 2. MARKET OVERVIEW: FRESH MILK 2007 COMPETITORS ANALISYS (market share value) TOTAL ITALIAN MARKET OF FRESH MILK Source: IHA Italia Family consumption PIEDMONT+LIGURIA+VENETO (16.8% OF TOTAL ITALIAN MARKET) ITALY Market value: 1,800 million 31.1% 4.4% 4.1% 29.0% 31.4% CLT Group Parmalat Granarolo Private label Others 37.4% 14.8% 24.3% 23.5% PIED-LIG-VEN Market value: 302 million CLT VS MARKET* ( sales trend) CLT MARKET SHARE ** 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% CLT Group P+L+V Market 25.0% 24.0% 23.0% 22.0% 21.0% 20.0% 24.3% 23.5% 22.6% 21.9% 21.4% 21.4% * Total value of Piedmont, Liguria and Veneto market **On total market value of Piedmont, Liguria and Veneto STAR CONFERENCE 2008 Pag. 16

17 2. MARKET OVERVIEW: UHT MILK 2007 COMPETITORS ANALISYS (market share value) TOTAL ITALIAN MARKET OF UHT MILK Source: IHA Italia Family consumption PIEDMONT+LIGURIA+VENETO (17.7% OF TOTAL ITALIAN MARKET) ITALY Market value: 1,417 million 33.5% 13.2% 2.3% 20.7% 30.3% CLT Group Parmalat Granarolo Private label Others 44.0% 13.0% 13.5% 10.2% PIED-LIG-VEN Market value: 250 million 19.3% CLT VS MARKET* (sales trend ) CLT MARKET SHARE ** 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% CLT Group P+L+V Market 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 12.8% 13.0% 13.1% 13.0% 11.6% 10.7% * CLT vs total market of Piedmont, Liguria and Veneto **On total market of Piedmont, Liguria and Veneto STAR CONFERENCE 2008 Pag. 17

18 2. MARKET OVERVIEW: YOGURT 2007 COMPETITORS ANALISYS (market share value) TOTAL ITALIAN MARKET OF YOGURT Source: IHA Italia Family consumption PIEDMONT+LIGURIA+VENETO (25.9% OF TOTAL ITALIAN MARKET) CLT Group ITALY Market value: 1,263 million 1.0% 18.9% 3.0% 4.0% 12.4% 3.6% 5.7% 8.6% 32.5% 10.3% Danone Muller Yomo Parmalat Granarolo Private Label Nestlè Mila Others 3.7% 29.0% 11.2% 4.9% 10.1% 10.7% 30.4% PIED-LIG-VEN Market value: 328 million CLT VS MARKET* (sales trend ) CLT MARKET SHARE ** 16.0% 12.0% 8.0% 4.0% 5.0% 4.5% 4.0% 3.5% 3.0% 3.5% 3.7% 3.9% 4.0% 4.1% 3.7% 0.0% CLT Group P+L+V Market 2.5% 2.0% * CLT vs total market of Piedmont, Liguria and Veneto **On total market of Piedmont, Liguria and Veneto STAR CONFERENCE 2008 Pag. 18

19 2. MARKET OVERVIEW MARKET PENETRATION Source: Gfk IHA 2006 BRAND AWARENESS* Source: Astra Demoscopea (quantitative research- CATI) The Group s main products (fresh/uht milk and yogurt) market penetration (1) has been growing in the last three years. The Group Brand Awareness 100% in reached almost FRESH MILK % 52% 52% 95% UHT MILK 30% 30% 32% 90% YOGURT 22% 22% 23% 94% n of families buying Centrale del Latte brand (1) Penetration % = total n of brands marketing the same product class in Piedmont, Liguria and Veneto. * Brand awareness %: solicited awareness of the Group s brands in Piedmont, Liguria and Veneto STAR CONFERENCE 2008 Pag. 19

20 2. MARKET OVERVIEW 2007 MARKETING INITIATIVES Source: Centrale del Latte di Torino & C. S.p.A. The Group reached a strong positioning in its interregional market also by exploiting high marketing and communications investments. MARKETING INVESTMENTS 3.5 million 2006 (3.6% of 2006 turnover) 3.3 million 2007 (3.3% of 2007 turnover) STAR CONFERENCE 2008 Pag. 20

21 2. MARKET OVERVIEW 2007 MARKETING INITIATIVES Source: Centrale del Latte di Torino & C. S.p.A. STAR CONFERENCE 2008 Pag. 21

22 2. MARKET OVERVIEW 2007 MARKETING INITIATIVES Source: Centrale del Latte di Torino & C. S.p.A. STAR CONFERENCE 2008 Pag. 22

23 2. MARKET OVERVIEW 2007 MARKETING INITIATIVES Source: Centrale del Latte di Torino & C. S.p.A. STAR CONFERENCE 2008 Pag. 23

24 2. MARKET OVERVIEW MARKETING INITIATIVES 2007: ITALIALLEVA PROJECT Source: Centrale del Latte di Torino & C. S.p.A. Since its incorporation, Centrale del Latte di Torino produces milk from selected and supervised Piedmont breedings. In order to ensure the highest quality to its customers, the Company joined the Italialleva project promoted by A.I.A., Associazione Italiana Allevatori (Italian association of cattle breeders), which includes the top breedings in Piedmont. This agreement requires the compliance to specific rules which guarantee the highest quality of the milk origination: product traceability, animals wellness and safety. TRACEABILITY OF THE CHAIN STAR CONFERENCE 2008 Pag. 24

25 3. FINANCIALS STAR CONFERENCE 2008 Pag. 25

26 3. FINANCIALS CONSOLIDATED INCOME STATEMENT (IFRS compliant) Source: Centrale del Latte di Torino & C. S.p.A. Euro million 31-Dec-07 IFRS % 31-Dec-06 IFRS % Sales % % Total operating revenues % % Services (25.15) (25.0%) (23.70) (24.3%) Raw materials consumption (54.04) (53.7%) (51.97) (53.2%) Cost of production (79.89) (79.3%) (76.34) (78.2%) Personnel costs (11.93) (11.8%) (10.92) (11.2%) EBITDA % % Depreciation & Amortization (4.35) (4.3%) (4.40) (4.5%) EBIT % % Net financial income (expenses) (0.33) (0.3%) (0.61) (0.6%) Profit (loss) before tax % % The consolidation perimeter includes financial statements of Centrale del Latte di Torino & C. S.p.A., Centro Latte Rapallo S.p.A., Centrale del Latte di Vicenza S.p.A. and Salads & Fruits S.r.l. (only 2H2007 revenues and costs of Salads & Fruits S.r.l. have been consolidated). It doesn t include stakes in affiliate companies. STAR CONFERENCE 2008 Pag. 26

27 3. FINANCIALS TOTAL OPERATING REVENUES TREND ( ) Source: elaboration on CLT data Euro million EBITDA ed EBIT TREND ( ) Source: elaboration on CLT data Ebitda Ebit Euro million STAR CONFERENCE 2008 Pag. 27

28 3. FINANCIALS 2007 SALES BREAKDOWN BY PRODUCT Source: elaboration on CLT data Sales by product 2007 sales - fresh milk UHT milk yogurt ready-to eat salad unbottled milk other packed milk and cream products total 2007 Euro million 2006 SALES BREAKDOWN BY PRODUCT Source: elaboration on CLT data Sales by product sales - fresh milk UHT milk yogurt ready-to unbottled milk other packed total 2006 eat salad milk and cream products Euro million STAR CONFERENCE 2008 Pag. 28

29 3. FINANCIALS EBIT and EBITDA MARGINS Source: elaboration on CLT data Euro million % 10.5% 10.0% 10.6% % 7.6% % 5.7% 5.3% 6.1% % % % 10.0% 8.0% 6.0% 4,0% 2.0% 0.0% Tot. oper. revenues Ebitda Ebit Ebitda/Tot. oper. revenues Ebit/Tot. oper. revenues NFP/EQUITY Source: elaboration on CLT data EBIT/CAPITAL INVESTED(Ki) Source: elaboration on CLT data Euro million x x 0.04x 0.06x 0.14x 0.36x x 0.40x 0.20x 0.00x Euro million % 11.5% 10.2% 10.8% % 6.6% % 10.0% 5.0% 0.0% Equity NFP NFP/Equity Ebit Ki Ebit/Ki STAR CONFERENCE 2008 Pag. 29

30 3. FINANCIALS CONSOLIDATED BALANCE SHEET Source: Centrale del Latte di Torino & C. S.p.A. Euro million 31-Dec Dec-06 % IFRS IFRS % Tangible assets % % Intangible assets % % Fixed assets % % Trade receivables % % Inventories % % Other assets % % Trade payables (27.31) (40.0%) (20.15) (36.4%) Other liabilities (5.82) (8.5%) (6.13) (11.1%) Net working capital % % NET ASSETS % % * Profit before tax (2007) ** Net profit (2006) Severance & other funds % % long-term liabilities % % Cash & equivalent (13.24) (19.4%) (12.35) (22.3%) Financial debt % % Net financial position % % Share capital % % Profit (loss) of the year 3.23* 4.7% ** % Shareholder's equity % % Minorities % % NET LIABILITIES % % The consolidation perimeter includes financial statements of Centrale del Latte di Torino & C. S.p.A., Centro Latte Rapallo S.p.A., Centrale del Latte di Vicenza S.p.A and Salads & Fruits S.r.l.. It doesn t include stakes in affiliate companies. STAR CONFERENCE 2008 Pag. 30

31 4. SHARE PRICE STAR CONFERENCE 2008 Pag. 31

32 4. SHARE PRICE SHARE PRICE ( YTD) IPO price: 6.80 per share (03/11/2000). Source: elaboration on JCF and Bloomberg data /1/2004 1/1/2005 1/1/2006 1/1/2007 1/1/ Share price at 29/02/2008 ( 2.68) Prices in euro PRICE PER SHARE ( YTD) Source: elaboration on JCF and Bloomberg data Year min. Year max. Year max. 2 1 Price sin euro YTD (1) (1) Last price at 29/02/2008 STAR CONFERENCE 2008 Pag. 32

33 4. SHARE PRICE 2007 SHARE PRICE Source: elaboration on JCF and Bloomberg data Last price at 29/02/ jan-07 feb-07 mar-07 apr-07 may-07 jun-07 jul-07 aug-07 sept-07 oct-07 nov-07 dec-07 jan-08 feb-08 CLT S&P/MIB Prices in euro 2007 SHARE PRICE - MONTHLY ANALYSIS Source: elaboration on JCF and Bloomberg data Price per share at the end of each month, last price at 29/02/ jan-07 feb-07 mar-07 apr-07 may-07 jun-07 jul-07 aug-07 sept-07 oct-07 nov-07 dec-07 jan-08 feb-08 Prices in euro STAR CONFERENCE 2008 Pag. 33

34 5. GOALS AND STRATEGIES STAR CONFERENCE 2008 Pag. 34

35 5. GOALS AND STRATEGIES NEW PRODUCTS DEVELOPMENT Diversify the product portfolio strengthening the Group position in the premium, innovative and more profitable segments. These are niche segments with high growth rates addressed to modern target with an active and healthy life style. On these premises, the Group realized new industrial lines and increased the productive capacity of some of the existing plants for the direct production of functional and healthy products: PROBIOTIC YOGURT Vicenza production facility ENRICHED EXTENDED SHELF LIFE MILK AND UHT AND EXTENDED SHELF LIFE CREAM Turin production facility HIGH DIGESTIVE UHT MILK Turin production facility READY-TO-EAT SALAD Casteggio production facility STAR CONFERENCE 2008 Pag. 35

36 5. GOALS AND STRATEGIES NEW PRODUCTION FACILITY IN VICENZA The new facility in Vicenza will start its production activity by the end of 2008 spring. The total investment amounted to Euro 29 million. The new plant will be dedicated to the production of fresh and UHT milk and will produce yogurt for all the Group s companies and for third parties. New production plant in Vicenza STAR CONFERENCE 2008 Pag. 36

37 5. GOALS AND STRATEGIES NEW PRODUCTION LINES IN TURIN In 2007 the Group realized innovative industrial lines for the production of milk, both fresh and UHT, and cream for a total investment of Euro 3,5 million. New line of PET fresh milk and paper with cap New packaging line for UHT milk with cap STAR CONFERENCE 2008 Pag. 37

38 5. GOALS AND STRATEGIES NEW PRODUCTION LINES IN TURIN New heat-treatment line for enriched extended shelf life milk and for UHT and extended shelf life cream STAR CONFERENCE 2008 Pag. 38

39 5. GOALS AND STRATEGIES SALADS & FRUITS The Group invested Euro 5,1 million in order to consolidate its presence in the ready-to-eat salad sector. With this investment the Group will enhance the commercial activity out of its traditional segments. Production facility Products STAR CONFERENCE 2008 Pag. 39

40 CONTACTS THE GROUP Via Filadelfia, Torino ITALY Luigi Luzzati Vittorio Vaudagnotti Chairman Investor Relator Tel Fax THE SPECIALIST Via Gramsci, Torino ITALY Valentino Molino Analyst Tel Fax valentino.molino@gruppobim.it STAR CONFERENCE 2008 Pag. 40