Harm de Wildt – MD TNI

Harm de Wildt – MD TNI
Nutreco Capital Markets Day 1
Derbyshire, UK| 17 September 2013
Agenda
1
Market overview
2
Animal Nutrition Europe
3
Animal Nutrition strategic priorities
Application Solution Centres
Go‐to‐market
Higher value‐added portfolio
Unite
2
Premix & Feed Specialties
Nutreco’s subsidiaries Trouw, Sloten and Selko produce and market premixes, farm minerals, young animal feeds, preventive animal health products and feed additives.
Market position
Presence
Customers
Suppliers
• Trouw is no. 2 global premix producer with an estimated market share of 12%
• Trouw has 15 production facilities in Europe, 17 plants in the Americas and 3 plants in Asia
• Feed compounders, integrators, distributors, farmers, companion animal industry and home mixers
• Producers of amino acids, trace elements & minerals, vitamins, dairy products, preventive animal health products, organic acids among others
• Main competitors are DSM, Cargill (Provimi) and Invivo
3
Product groups
Margin
10%
Feed additives
e.g. preventive health products
Basic feed additives
e.g. vitamins
Macro‐minerals
e.g. feed phosphates
Pure/blended feed additives
0.1‐0.3%*
High concentrate premix
Global
Protein e.g. soya
6%
Energy
e.g. grain
Premix/farm minerals
1‐5%*
4%
5‐10%*
Concentrates
3%
Complete feed
100%*
1%
5%
* Inclusion rate: percentage of inclusion in final product
10%
100%
Local
Volume 4
Livestock numbers EU‐28: dairy cows & sows 25
Number of dairy cows (x million)
25
24
24.3 24
23
23
22.3
CAGR (‘06‐’11): ‐1.2%
22
22
21
2006
18
16
14
12
10
8
6
4
2
0
2007
2008
2009
2010
2011
2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)
Number of sows (x million)
15.6
12.1
CAGR (‘06‐’11): ‐3.4%
2006
2007
2008
2009
2010
2011
2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)
5
Livestock numbers EU‐28: poultry
Number of layers (x million)
350
300
250
268
237
200
150
100
CAGR (‘06‐’11): ‐0.8%
50
0
2006
2007
2008
2009
2010
2011
2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)
Number of broilers (x million)
5,600
5,400
5,355
5,200
5,000
4,800
4,707
4,600
4,400
CAGR (‘06‐’11): +1%
4,200
4,000
2006
2007
2008
2009
2010
2011
2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)
6
Livestock numbers: Russia
10,000
9,800
9,600
9,400
9,200
9,000
8,800
8,600
8,400
8,200
Number of dairy cows (x 1,000)
9,545
500
Number of breeding sows (x 1,000)
449
400
400
8,863
300
200
CAGR (‘6‐’11): +2.5%
CAGR (‘6‐’11): +3.4%
100
0
2010
700
600
2011
2012 2013 (E) 2014 (E) 2015 (E) 2016 (E)
2010
2011
2012 2013 (E) 2014 (E) 2015 (E) 2016 (E)
Number of poultry (x million)
565
600
500
438
400
300
CAGR (‘6‐’11): +12%
200
100
0
2010
2011
2012
2013 (E) 2014 (E) 2015 (E) 2016 (E)
7
Focus towards growing segments
•
Home‐mixing farmers and integrators are the fastest growing segments in Europe •
With increased farm‐size and consolidation, distributor’s role will gradually diminish, and the needs of farmer‐segment will change (fewer and bigger farms)
•
Compound feed industry in the future will only remain strong in countries where:
• Farmers make purchase decisions on feed
• Farmers have relatively poor access to raw materials
8
Animal Nutrition strategic priorities
Focus
Solid
positions
ASCs
Go‐to‐
market
Growth
geographies
EBITA
margin
Improve the 50% of EBITA in Higher value‐added Growth geographies, EBITA operating commercialisation of Premix & Feed Link between R&D globally branded secure mature margin Premix &
and customer needs
our value Specialties from nutritional solutions
markets
Feed Specialties >7%
proposition
growth geographies
9
Our value proposition and competitive advantage
•
•
•
•
•
Swine
Poultry
Ruminant
YOUR LOGO
•
•
Premix Feed specialties
• Feed additives
• Preventive animal health
• Young animal feeds
Quality assurance
Ingredient optimisation
10
The innovation cycle
Application and Solution Centres are the interface between local marketplaces and Nutreco’s global marketing and innovation teams
Customers
Needs
Operating companies
ASC
Interface
Business input




R&D
Nutritional
and technical
know‐how
Technology transfer & training
Innovation
Strategic marketing
Branding & communication
11
Go‐to‐market
Improving the commercialisation of our value proposition
Where to compete and customer selection
Customer and market segmentation
Where
Margin Improvement
How to compete
How
What
What value proposition do we compete with
Portfolio of nutritional products,
models & services
Organisational and sales
Capabilities improvement
12
Go‐to‐market in action
Animal Nutrition Europe’s YAF ruminant strategy
Ruminant sales profit
Young animal feed ruminant sales profit
33%
48%
52%
Other
YAF
67%
Private labels
Nutreco brands
13
Higher value‐added product brands
Feed additives
Preventive animal health products
Young animal
feeds
Clear product group portfolio with strong brands
14
Feed additives cover a broad spectrum of ingredients Indicative evaluation of feed additives’ specialty vs. commodity characteristics.
strong
Prebiotics
Probiotics
Taste & flavor
substances
Antioxidants
Market growth
medium
Carotenoid pigments
Minerals
Plant origins
Enzymes
Toxin solutions
Anti‐caking agents
Vitamins
Organic acids
Emulsifiers
Amino acids
low
Organic trace elements
Antibiotics
Market growth
medium
high
Competition intensity
Note: May vary based on markets and geography.
Sources: Droege study (2008), Frost & Sullivan, D&C Research
low
Markets Nutreco is active in
Size of market value
15
Selko Feed Additives – added value
Food safety
Animal health Economic value 16
Selko markets: throughout feed‐to‐food value chain 17
18
Presan development ‐ A collaborative effort
AgResearch, CA
Ingredients Research Centre, NL
Swine Research Centre, NL
Poultry Research Centre, ES
Complete dossier built on in‐vivo measurements and results from more than 20 trials
19
Presan improves animal performance And the performance of our customer
Customer return on investment (ROI) with Presan: • Reduced use of antibiotics & zinc oxide
• Similar or better performance for lower price:
• Increased weight
• Increased value
• Better life
• Improved feed conversion
• Up to € 5 ROI for every € 1 invested in Presan*
* Clinical data on file
20
Trouw AO‐mix: natural blends of anti‐oxidants
• Anti‐oxidants are used against ageing and diseases
Trouw AO‐mix
Result
• Natural blends of anti‐oxidants
• Compounder: cost price reduction and
differentiator for their customers
• Tailored to the species digestive system
• Trouw AO‐mix for ruminants
• Farmer: effective anti‐oxidant protection to support productive livestock
• Trouw AO‐mix for monogastrics
21
Trouw AO‐mix strategy
Europe
Global
• Central launch April 2013
• Sales forecast:
• Next steps:
• Trouw AO‐mix sales team
• Trials in poultry and ruminants
• Execution media plan
• Indonesia and China in launch preparation phase
• Expected launch 2014
• Further global roll‐out to be planned when supply‐chain secured
22
Unite ‐ foundation for better business performance
Unite is a challenging journey to standardisation
and optimisation of all business processes leading
to improved business performance.
Unite will:
1. Promote cost leadership through standardisation and operational excellence
2. Enable organic growth with organisational agility 3. Support growth by acquisitions
4. Enhance management information
5. Improve procurement performance
6. Provide a single Unite Solution with M3 as a basis
Rolling it out in the business
23
Conclusion
Strategic priorities translated into executionable roadmap to 2016
Globally branded specialty products drive growth & margin improvement
Go‐to‐market and ASC improves commercialisation value proposition Value propositions aligned with customers needs Drive for sustainability and excellence
Strengthen market leadership in mature markets Unite program to further improve business performance
24
THANK YOU