Analyst meeting 01/04/2011

Analyst meeting
01/04/2011
Disclosure
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 of 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The information contained herein is not for publication or distribution into the United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 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.
Agenda
1. Operational update
2. Organization
3. Financial Update 2010
4. Outlook
5. Scana Noliko
6. Cecab
7. Q& A
: Herwig Dejonghe
: Herwig Dejonghe
: Steven D’haene
: Herwig Dejonghe
: Hein Deprez
:Herwig Dejonghe
Operational update
Supply
Vegetables
–
–
–
2010: Moderate harvest year for the vegetables in Western Europe but very poor
crop in Eastern Europe
In the context of the optimization of working capital requirements, the vegetable
division lowered the sowed acreage and production volumes
There will be a shortage of some vegetables before the new season
Potatoes
–
Harvest 2010: a lot of small potatoes (negative for the production yield) primarily
due to the heat wave at the end of June 2010, difficult harvest conditions because
of high levels of rain in the fall and extremely early frost
–
Very strong increase of the raw material price (strong increase in demand of
Russia / harvest problems)
Sales contracts made for shorter periods to cope with the high raw material prices
–
Vegetables :
What about the markets?
• Lower purchase prices for raw materials for 2010 crop gave
a wrong signal to the buyers as they had already received
price reductions in the 2009/2010 negotiations. So contractnegotiations for the 2010/2011 were very difficult.
• Pinguin-sales-team managed to stabilize new contract sales
prices and optimized customer/product portfolio.
• Customers first react on shortages with de-listings of
products but come back as new crop is approaching.
Potatoes :
what about the markets?
• High raw material prices were not expected by majority of
processors. Most contractprices for 2010/2011 of
competitors are at to low levels and apply as tradition for
period of one year until end of september 2011.
• Lutosa sales-team anticipated this problematic market with
mostly half year contracts.
• Prices of raw materials remained very high in first quarter
2011, because of volumes going to Russia. Expectation for
important price-drop in april as new season is approaching
but wait and see.
PinguinLutosa :
Sales contracts
• Annual sales contracts are mainly discussed from June till
September for the vegetable division and from August till
October for the potato division.
• Vegetable division: stable to reduced volumes, actual
shortages prepare for price increase for new sales contracts
’11.
• Potato division: due to high demand and the strong increase
of raw material prices we opted to contract for a shorter
term until February ’11. This way we are able to respond
more rapidly to the changing market conditions but not
enough to compensate for the extreme increase.
• Increased “convenience” sales volumes .
Organisation
Board of directors as from
14/03/2010
• The Board of Directors has decided to appoint M. Hein
Deprez (Deprez Invest NV) as managing director of
PinguinLutosa NV as from 14 March 2011 onwards
• General Assembly
– New directors
• JM Jannez ; CEO Cecab
• Replacement of Mr. Patrick Moermans (12 years)
Organigram
Management team PinguinLutosa Scana Noliko (PLSN)
Managing director
(Hein Deprez)
CFO
(Steven D’haene)
PinguinLutosa Frozen
CEO
(Herwig Dejonghe)
Scana Noliko
CEO
(Dominiek Stinckens)
Organigram
Management team PinguinLutosa Food group
CEO
(Herwig Dejonghe)
CFO
(Steven D’haene)
COO
(Hans Luts)
General manager
Lutosa
General manager
Pinguin
(Erwin Wuyts)
(Herwig Dejonghe)
Average number of FTE
Average number of FTE
PinguinLutosa NV
31/12/2010 31/12/2009 31/12/2008
245
242
242
Pinguin Langemark NV
89
113
116
Pinguin Foods UK Ltd.
259
293
340
Pinguin Aquitaine SAS
39
42
39
Pinguin Deutschland Gmbh
6
6
4
MAC Sarl
0
1
1
628
633
606
25
28
26
405
363
335
1.696
1.721
1.711
Lutosa Group (production sites)
Lutosa Group (sales offices)
Interims & seasonal personnel
Total
Financial update 2010
Evolution of turnover
Sales by country
Sales evolution ‘10 vs ‘09
Vegetable Division
Volume
+10,8%
Exchange rate
+1,8%
Price/Product-mix
Total
-3,3%
+9,3%
Price/Product-mix
Total
Potato Division
Volume
+13,8%
Exchange rate
-1,6%
+12,2%
Profit & loss
EUR ‘000
31.12.2010
31.12.2009
Sales
483.564
436.838
Inventory movement
-15.214
6.133
6.557
3.826
474.907
446.797
Raw materials, trade goods
-264.797
-236.440
S,G &A
-121.811
-113.276
Personnel
-58.253
-57.804
EBITDA
27.106
36.101
-19.294
-19.432
Write offs
-554
-578
Provisions
65
-1.050
-2.940
-3.177
7.323
15.041
-4.680
-8.015
112
3.304
2.755
10.330
Other operating revenues
Operating revenues
Depreciations and reversal
Other operating charges
EBIT
Financial result
Taxes
Net result of the group
Evolution of REBITDA
Vegetable Division
1st SEM
2nd SEM
FY
2010
-1.656
16.944
15.288
2009
4.607
13.908
18.515
-136%
+21,8%
-17,4%
Potato Division
1st SEM
2nd SEM
FY
2010
4.511
6.126
10.637
2009
7.441
10.145
17.586
-39,6%
-39,5%
-39,4%
REBITDA
31/12/2009
EUR 36,1 m
Vegetables Belgium + PAQ
- EUR 2,2 m
Vegetables UK
- EUR 1,1 m
Vegetables
- EUR 3,2 m
Potatoes
- EUR 6,9 m
Net delta
31/12/2010
- EUR 10,2 m
EUR 25,9 m
Explanation of results 2010
Vegetable Division
•
•
•
•
•
REBITDA 2010 vs 2009: - 3,2 mio EUR
Lower production volume: less absorption of fixed costs
Lower cost of fresh vegetables
Despite higher sales volume, no increase of gross margin (negative
price-effect)
Operational figures:
– Sales volume:
– Production volume:
– Stock volume:
284.421 tons (+10,8%)
186.100 tons (-15,2%)
137.267 tons (-16,3%)
Explanation of results 2010
Potato Division
•
•
•
•
•
•
REBITDA 2009 vs 2008: - 6,9 mio EUR
Higher sales volume
Lower production volume (absorption fixed costs)
Strong increase of raw material price
Higher sales volume and production volume could not compensate the
increased raw material price
Operational figures:
– Sales volume:
– Production volume:
– Stock volume (FP):
382.397 tons (+13,7%)
363.237 tons (+8,1%)
29.235 tons (-32,4%)
EBIT-REBIT Bridge
Financial result
31.12.2010
Financial result
Delta
31.12.2009
- Eur 4,7 m
+ Eur 3,3 m
- Eur 8,0 m
Exchange rate/MTM
+ Eur 2,6 m
+ Eur 3,0 m
- Eur 0,4 m
Intrest charges
- Eur 5,8 m
+ Eur 0,3 m
- Eur 6,1 m
Of which
Taxes
Taxes
31.12.2010
Income taxes
- Eur 1,9 m
Def. taxes
+ Eur 2,0 m
Taxes
+ Eur 0,1 m
Deferred tax assets:
• For the difference in treatment between Local gaap and IFRS
Cashflow
(All figures in € '000)
31/12/2010
31/12/2009
Change
Cash flow from operating activities
Change in working capital
25,410
8,696
28,825
13,215
-3,415
-4,519
= Net cash flow from operating activities
34,106
42,040
-7,934
Cash flow from investing activities
Cash flow from financing activities
Effect of exchange rate fluctuations
-12,290
-4,633
-182
-12,198
-12,170
-93
-92
7,537
-89
= Free cash flow
17,001
17,579
-578
Cash and cash equivalents, opening balance
Cash and cash equivalents, closing balance
37,988
54,989
20,409
37,988
17,001
Free Cashflow 2010 vs 2009
20.000
18.000
17.579
(3.415)
7.537
(89)
17.001
Financing
activities
Exchange rate
FCF 2010
16.000
(4.519)
14.000
12.000
(92)
10.000
8.000
6.000
4.000
2.000
0
FCF 2009
Operating
activities
Working capital
Investing
activities
* Financing activities: in 2010 capital increase of 10 mio euro
Balance sheet - Assets
Assets
31.12.10
31.12.09
31.12.08
188.301
192.034
199.168
4.206
4.483
5.556
52.832
52.773
52.687
Tangible fixed assets
131.120
134.660
139.810
Financial fixed assets
0
0
0
Deferred taxes
0
0
997
143
118
118
231.936
208.447
200.632
0
0
102
112.566
122.152
114.776
64.380
48.307
62.640
0
0
2.703
54.990
37.988
20.409
420.237
400.481
399.800
Fixed assets
Intangible assets
Goodwill
Other receivables
Current assets
Assets held for sale
Inventories
Trade receivables
Financial assets
Cash
Total
Evolution of CAPEX
* Excluding acquisitions through business combinations / brandname / customer portfolio potato division
Capex
•
Capex 2010: 15,3 million euro
–
–
–
–
•
Main capex vegetable division:
–
–
–
–
–
•
Land and Buildings : 0,5 million euro
Machinery and equipment : 13,2 million euro
Furniture and vehicles : 0,8 million euro
Software: 0,7 million euro.
UK: automation infeed line
UK: optimisation packing hall / loading quays
Belgium: automatic transport system
Belgium: optimisation cooling system and production lines
Belgium: new packing line in Langemark
Main capex potato division:
–
–
–
–
–
Speciality line
Steam installation
Steam pealer
Water purification
Optical sorting machines
Working Capital
Inventory
Of which Lutosa : 27.300
Trade receivables
Trade payables
Of which Lutosa: 47.047
Of which Lutosa: 31.325
Balance sheet - Liabilities
Liabilities
31.12.10
31.12.09
Equity
138.714
125.148
113.556
Non current Liabilities
84.743
99.632
117.389
56.031
68.917
75.848
1.283
1.309
254
27.429
29.406
41.287
196.780
175.701
168.855
Financial debts
65.755
61.266
58.75
Trade Payables
116.679
99.429
91.138
14.346
15.006
19.423
420.237
400.481
399.800
Financial debts
Provisions
Deferred taxes
Current liabilities
Other
Total
31.12.08
Evolution of net financial debt
Constitution of net financial
debt
Liquidity
31.12.2010 31.12.2009 31.12.2008
Liquidity
1,18
1,19
1,19
35
Solvency
Solvency
31.12.2010
31.12.2009
31.12.2008
33,0%
31,2%
28,4%
36
Gearing
Gearing
31.12.2010
31.12.2009
31.12.2008
48,2%
73,9%
100,2%
Outlook
Herwig Dejonghe
Business environment : Vegetables
•
Vegetables
– Inventory levels are low.
– Lack of inventory limits sales in first half of 2011.
•
Increase raw material prices for new season
– Average + 6 % à 7%
•
Positive atmosphere to compensate in new contracts as from
July/August
•
Vegetable processing back on 2008 level in order to get to more
sustainable inventory-levels and to cure current sales limitations
Business environment Potatoes
•
Transfer of increased raw materials into higher sales prices for the
majority of the customers. Volume drop according to plan as
increased sales prices causes volume drop in first halve of 2011
• Increase for new season
– Estimate +10%
•
Potatoes processing back to 2008 levels but less than 2009 and 2010
Summary
No breach of covenants during 2010
REBITDA of 25.9 million euro
Substantial net debt decrease
Stocks at a very low level at year-end
Net profit pre-tax of 2.6 million euro
Profit after taxes of 2.8 million euro
Vegetables: Moderate harvest in 2010, stocks at a very low
level
• Potatoes: very high price for raw materials, forecasted drop
in sales volume during 2011 due to higher sales prices
• Integration and consolidation continues with the acquisition
of D’aucy frozen foods and Scana Noliko
•
•
•
•
•
•
•
SCANA Noliko
Hein Deprez
Floor plan 2010
Floor plan 2010
Total area
: 43,2 ha
Built-up area : 12,5 ha (124.503m²)
• Production : 4,7 ha
• Warehouse : 7,8 ha
Available area for building : 8,5 ha
Anaërobie
warehouse Waste water treatment
Aërobie
plant A
(vegetables&fruit)
warehouse
plant B
(packaging/labelling)
C
)
t
n
e
c
a
ship
pl
ien
n
n
ping
e
o
v
i
t
a
r
(con
ist
n
i
m
Ad
Crop areas
Country # Growers
B
NL
D
Total
180
94
38
312
Area
2.356
1.408
682
4.446
Brabant
Full control over the
vegetables supply chain
(quality, quantity, timing)
Limburg
Bree
Germany
Crop areas available for future growth
Cfr. Area in 2005 = 3.600 ha
Haspengouw
Shareholders structure
Category A
Category B
Category C
EFICO bvba
GIMV nv
MRBB, pers. & growers
5% (1.015.950A)
91,21% (18.532.460A)
3,79% (770.585A)
Scana Noliko Holding nv
100% (50.000A)
99,95% (2.144A)
0,05% (1A)
Scana Noliko
Ltd
0,03% (1A)
Scana Noliko
nv
25% (250A)
BND
cvba
99,97% (3.427A)
Scana Noliko
Rijkevorsel nv
99,9% (999A)
0,1% (1A)
Scana Noliko
Real Estate nv
Market size : canned vegetables
Canned Vegetables : a market of € 4.9 billion (in retail prices), (excluding
tomatoes : € 3.7 b) and growing with inflation
Vegetables covers a broad range of
products
W-E vegetable market round 4.9 B€
and expected to grow at ~2.6%
• Other Canned vegetables is the largest category
and includes a very wide range of (local)
products
B€
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
• Tomatoes do not include tomatoes sauce or
tomato concentrate
• Baked beans is mainly a UK product
• Mixed vegetable include mixed peas and corrots
and several “bean” mixes
Sweetcorn
Baked beans
Mixed vegetables
3.0%
1.5%
3.6%
1.4%
2.5%
•Volume
2.0%
2.2%
0,8%
2.5%
0.6%
Source: datamonitor 2007 retail (ex VAT) values
1.8%
Potatoes
Peas
2.5%
Carrots
Tomatoes
Other Canned vegetables
•Sales
CAGR 07-12
4.1%
4.8%
2.4%
2.6%
• Peas are the largest individual product group,
and are eaten throughout Europe.
Canned vegetables market
• France, Germany and UK are the largest markets
• In Germany pickled vegetables are an important segment, in UK backed beans
• Private label close to 50 % of the market (in sales value, higher in volume
percentage)
• Bonduelle market leader with estimated market share > 25-30%
• Cecab Nr 2 with around 15-20 %
• Subtop = different players with a similar size, with focus on different markets
or product groups : Premier (Premier Foods in talks with Princes concerning purchase of two
sites ), Scana Noliko, Coroos, Lutece, Conserva Italia
Market shares
53%
Private Label
47%
Branded
Bonduelle
CECAB
Lutece
Prochamp
Conserva Italia
Premier
SN
Coroos
Kuhne
Andere champ
HAK
Stollenwerk
Mamminger
Elde
Sauce market
Sauce market has many subsegments
Scana Noliko active in wet cooking sauces and dips
Wet cooking sauces around 4.6 B€
Dips sauces around 0.9 B €
Sauces market covers a broad range
of products
16
• Wet cooking sauces: Pasta sauces, oriental
sauces, Mexican sauces, Indian sauces
14
• Seasonings: Salt, pepper, spice mixes, …
12
• Table sauces: BBQ sauce, ketchups, brown
meat sauce, Mustards, … typically served cold
B€
10
• Dressings: Mayonnaises, cream based
dressings, vinaigrettes, tartare
8
6
• Pickled products: Pickles vegetable sauces
4
• Dry sauces: Dehydrated sauce mixures e.g.
instant gravy sauces or stock cubes
2
Total
Condiments
Dips
Dry sauces
Pickled
products
Dressings
Table
sauces
Seasonings
Wet cooking
Source Datamonitor reports
• Dips: Thickened tomato, cream mixes with
herbes, spices, cheese or chive
• Condiments: Sauces with compliment food e.g.
soy sauce
Cooking sauces
• More dynamic market with growth rates between 3 % and 7 %
• Pasta sauces is the largest segment, followed by oriental sauces
• Market dominated by strong brands (Bertolli, Knorr, Heinz, Uncle
Bens,…)
• Unilever market leader with around 16 %
• Nestle, Cirio, Barilla and Mars market share between 5 and 10 %
• Private label less important : slightly below 20 %
• Scana Noliko growth rate in sauces : 7.5 % p.a.
Turnover by product group
Almost all categories showing above market growth
* budget
Private label & brand owners
Turnover by customer
Top 5 customers represent only 35% of sales
Turnover by country
Turnover by product family
300 million units
Diversification is a core strategy
Turnover by contract type
>77% of sales volumes contracted one year in advance
Turnover by market segment
Future growth
1.
UK
Germany
Scandinavia
2. Sauces & soups
Fruit
3. New product catagories
• Mushrooms
• pickled vegatables
possibly thru acquisition
4. Green energy
• Bio Mass
• Wind
• Solar
Increase market share
Take advantage of market growth +
private label growth
Possible targets identified
Transforming organic waste
into energy
Home labels
Best in class
• Use of the best available technologies
• Most flexible equipment in the industry (tailor made products)
• Customer related quality systems : 2.2 audits / week
• Always first to implement highest quality standards
• UK : Green label Tesco; M&S approved
ISO9001
(1993)
ISO14001
(2000)
Autocontrole
AGF
(2007)
HACCP
(1995)
BRC/EFSIS
(1997)
IFS
(2005)
Customer
Related
Quality
systems
BIO Ecocert
(2000)
GMF
Feed
(2002)
Erkenning
Vleeswarenfabr.
(1989)
Erkenning
Visbereiding
(1990)
Vergunning
Eetwareninspect
(1993)
Scana Noliko : Financials
1/04/2011
Ebit & Ebitda
mio €
%
26
26
26,0
24
22
21,7
20
19,7
18
16
15,3%
14
12,2%
12
12,0
10
7,2%
6
2
15,3
8,2%
10,2
15,2%
14,9
12,8
10,2%
10,9 9,9%
15,9%
15,1%
15,8
14,4%
13,0
9,9
8
4
13,9%
13,8%
17,6
11,0%
13,7
12,1%
14,5
11,0%
22
22,9
20
19,7
18,9
24
18
18,6
16,6
14,6%16,1 14,3%
16
13,4%
13,6%14
12
10,8%
10,6%
9,7%
9,7% 10
8
7,7
6
5,0% 6,3
4
4,1
2
0
0
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
budget
Ebit
Ebitda
Ebit / turnover
Ebitda / turnover
Scana Noliko dec’10
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Working capital – reported figures
WC / turnover
43%
42%
41,0%
40,3%
41%
39,6%
40%
39%
41,5%
38,2%
38%
37%
35,5%
36%
34,5%
35%
34%
33%
32%
Mar 2006
Mar 2007
Mar 2008
Mar 2009
Mar 2010
Mar 2011
budget
Mar 2012 SPL
Working capital - stocks
stock / turnover
51%
50%
50,1%
49,1%
49%
49,5%
48,4%
48%
47,5%
47,7%
47,6%
47%
46,5%
46%
46,3%
45,9%
46,2%
45,4%
45%
44,3%
44%
43,2%
43%
43,1%
42,6%
42%
41,2%
41%
40%
FY2008-09
43,9%
40,0%
39,7%
43,1%
41,5%
FY2010-11
41,4%
Excl. Rijkevorsel
40,0%
39,6%
FY2009-10
42,7%
40,9%
39,2%
39%
38,4%
38%
37%
36%
42,9%
36,9%
37,3%
36,0%
35%
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Capex
in mio €
12
10
Replacement capex € 3.5 – 4.0 M
Significant capacity
increase in last years
1,8
2,0
1,0
8
6
5,4
5,6
4,0
0,8
4
2
3,2
4,0
3,6
3,8
3,6
0
2006-2007
2007-2008
2008-2009
Basic investments : replacement, efficiency, legislation
2009-2010
Capacity expansion
2010-2011
Warehouse expansion
Capex
investments focussed on capacity
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Warehouses = 15.800 m²
Packaging line small cans
Capacity sterilization small cans (2x Molenaar)
Green beans – filling line
Capacity green beans
Capacity peas
Capacity carrots
Cooking sauces
Robotising & sterilization sauce pouches line
Sprinkler
Freezer
De- and palletizer
Green energie : combined heat power (WKK)
Capacity fruit : Bertocchi, acquisation Rijkevorsel
Scana Noliko : Investment highlights
01/04/2011
Summary
1.
SN is active in a stable/mature preserved vegetable
market as well as in a more dynamic sauce & soup market
2. SN is a long term outperformer in the market
3. SN has full control over the vegetables supply chain
4. Diversification is the foundation of our strategy
• productgroups
• clients
• geographical
5. Very loyal & growing key clients
6. Management team with long industrial knowhow
7. State of the art/best in class asset base
Cecab
Herwig Dejonghe
Cecab (d2f) has significant production
capacity spread across 3 countries
•
7 production facilities
Production
Capacity
(ton)
#
Specialty
2010
(ton)
Moréac(FR)
50.000
Peas, beans, cauliflower and mixtures
46.400
Comines (FR)
35.000
Peas, beans, Spinach, Carrots and
other root vegetables
27.00
Empl.
311
Elk (PL)
Adamow (PL)
12.500
6.000
Carrots, cauliflowers, fruits
8.500
Fruits, champignons
3.900
Lypno (PL)
12.000
Broccoli, cauliflower, oignons, fruits
5.000
Dambrowa (PL)
14.000
Beans, broccoli, cauliflower & tomatoes
8.145
323
Baja (HU)
16.600
Peas, beans and sweetcorn
146.100
Utilization rate: between 55% & 77%
7.164
106.109
77
711
Transaction Overview
As of May 1 2011, PinguinLutosa takes over operational lead, including the personnel, for the deepfrozen vegetable activities of CECAB.
This includes the 7 sites and 2 sales offices:
- France : Moréac, Comines
- Poland : Elk, Lipno, Adamóv,Dambrova
- Hungary : Baja
- Sales offices in Brazil and France
Status as of March 2011 : Confirmed
PinguinLutosa thus takes participations for an amount of € 5.720k in the existing companies and will
create newco’s in France, Poland and Hungary to operate.
Cecab has promised to capitalise the reserves of the companies or to review the acquisition price
downwards should the equity values be below € 5.720k.
Status as of March 2011 : Confirmed
Transaction overview : Working capital
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The existing Cecab companies buy the fresh vegetables from the farmers (cf
subsidies).
PL is responsible for: Production, Storage, Packing, Purchasing, Commercialisation.
PL invoices the production, packing and storage costs to Cecab: deep-frozen bulk+
standard storage cost.
– At this point no stock is figuring on PinguinLutosa’s books.
At the moment of sales to final customer PinguinLutosa buys the stock. The payment
terms which are given by Cecab need to correspond to the payment terms which are
given to the ‘final’ client.
The external purchases or the transfer between the sites needs to be financed by
PinguinLutosa itself.
Purchase of opening stocks of Cecab on 30/04/2011 needs to be neutral for
PinguinLutosa.
We don’t take over stock at closing date. Only at the moment of selling to the ‘final’
clients, the purchase of the related stock happens at neutral conditions.
After 1 year PinguinLutosa could takes over the stock which has not been purchased
at residual value, which is determined in concerted action.
Status as of March 2011 : Confirmed
Transaction overview : investments
• PinguinLutosa and Cecab determine an investment
envelope.
• Cecab guarantees the financing of the investments.
• The rental charges are adjusted based on the investments,
whereby the normal economic depreciation charges and the
financing costs are taken into account in the increased rent.
• Magnitude of the investment envelope to be decided in
concerted action.
• The investment envelope is determined based on the
business plan for a period of 1-5 years which needs to be
set up.
Transaction overview : Rental contracts
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PinguinLutosa rents the land and buildings.
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Initial period: 6 years.
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Rental charges can be adjusted based on the future investments.
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The site in Bekescaba is no longer withheld, since production has
been stopped there. In case PinguinLutosa might use the storage,
a service contract will be made at market conditions.
Status as of March 2011 : Confirmed
Transaction overview: earn out
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A reference - Ebitda is determined at € 20,6 million. The year of reference is 2012.
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In case the annual Ebitda of PinguinLutosa’s deep-frozen vegetable divsion, together
with the acquired activities of Cecab, would be higher than the reference-Ebitda, the
difference will be allocated to D2F in a format which still needs to be determined (Earn
out).
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The maximum Earn out is set at € 6 million which corresponds to the value of the
‘fonds de commerce’ or business.
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Example:
In case the Ebitda amounts to € 22 million, the additional fee amounts to € 1,4 million
for that particular year :
4
4
4
4
4
* '
5
5
5
5
5
&
%
5
5
5
!
5
Status as of March 2011 : Confirmed
Impact on the financials of PinguinLutosa
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No fixed assets on the BS (except for sales offices) : Rental
No initial stock on the BS
Only very limited extra working capital needs
Full personnel charges for PinguinLutosa +- 700 people
– Ongoing restructuring
PL will invoice production/packing/storage cost to CECAB
PL will purchase finished products from CECAB once sold to end
customer
– 2X sales on processing costs
Estimated external sales 130-140 mio euro (12 months)
First year only limited positive impact on EBITDA;
Turnaround by :
– Increased production
– Restructuring program (redundancies)
– Cost cutting and less overhead and group charges
– More focused production/ concentration
Management: post aquisition
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France Moréac
– General manager Daniel Pagnez (COO CECAB)
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France Comines
– Newco Comines established:
– General Manager Jan Ingelbeen (GM Belgium)
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Hungary
– PinguinLutosa Foods Hungary : established
– General manager : Otto Ersek
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Poland
– PinguinLutosa Polska established
– General manager : Anja Jecsmyk
Q&A