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Corporate Presentation November, 2010

Corporate Presentation November, 2010. INDEX Introduction Rice Business Pasta Business Conclusion Annex I. Main Figures Annex II. Product Samples. 1. INTRODUCTION. Who is Ebro?

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Corporate Presentation November, 2010

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  1. Corporate Presentation November, 2010

  2. INDEX • Introduction • Rice Business • Pasta Business • Conclusion • Annex I. Main Figures • Annex II. Product Samples

  3. 1 INTRODUCTION

  4. Who is Ebro? • Ebro is an international brand-based food group with a market capitalization of €2.26 billion, turnover of €1.75 billion and net profit of €176.4 m at the end of 2009. • Over the last ten years we have made several changes, transforming our company from a sugar company in 2000 (with a financial participation in Herba since 1989) to our present structure: • In 2000, we merged with Puleva (branded dairy leader in Spain). • In 2001, we fully incorporated Herba (European rice leader). • Between 2001 and 2004 we bought up 7 small and medium-sized leading branded rice companies in Europe. • In 2004, we acquired Riviana (branded rice leader in USA). • In 2005, we acquired Panzani (branded rice and pasta leader in France). • In 2006, we acquired New World Pasta and Minute Rice (leading branded pasta and rice companies in USA and Canada). • In 2007, we acquired Birkel (leading branded pasta company in Germany). • In 2009, we divested our Sugar Division. • In 2010, we divested Puleva. • In this period we have invested €1.7 billion, made divestments of €1.87 billon, with no capital increase and maintaining a healthy pay out for our shareholders. Nowadays, after the sale of Puleva, we are debt free.

  5. Ebro Nowadays We are world leaders in the branded rice sector and the second branded pasta manufacturer worldwide. Ebro subsidiaries are distributed over 23 countries in Europe, America, Asia, Northern Africa and we have a portfolio of over 60 brands. Our stock is quoted in the Madrid Stock Exchange Market (Ibex 35 company). The Hernandez family is the reference shareholder since 2003. All together, with other members of the Board (essentially other Spanish families), control 44.6% of the equity. The rest is freely floated in the market. Being our products strongly related with raw materials our relationship with rice and durum wheat farmers has always been very strong and we consider this as a very valuable asset. Our balance sheet is very strong. Nowadays we are debt free and we have a strong cash flow generation. We have the clear ambition of reinforcing our international leadership in our core businesses.

  6. Spain Breakdown of Ebitda

  7. Ebro Presence

  8. 2 RICE BUSINESS

  9. The Rice Business The history of our Rice Division tracks back to a business started by the Hernandez Family in Spain in 1950. After its full integration in Ebro Foods in 2001, we have taken over 10 rice businesses throughout the world: Denmark, Hungary, Finland, Germany, UK, USA, Canada, Egypt, Thailand and India most of them branded companies but as well sourcing capacity (silos and mills). Two key milestones for us were the acquisition on Riviana Foods in 2004 (374 MUSD) and Minute Rice in 2006 (280 MUSD). That development allowed us to become US leader in rice. That added to our pasta activity created a 1,0 BUSD sales group in US and Canada. Nowadays we are the largest rice processor in the world with leading brands in most countries in Europe, USA and Canada. We have a strong expertise in raw materials. One of our strengths is having a strong foothold in the largest rice production regions in the world, with a strong infrastructure and a flexible balance sheet. We are using our brands to open up new sectors, including convenience foods, pasta, purées, porridges and new products. Management raw materials, production and packaging, technologies and brands are vital for our project.

  10. Rice Market Shares

  11. Rice Brands

  12. Rice Raw Material Purchases • In Europe: • We purchase 500.000 tm/annum of rice. All purchases are made to farmers and cooperatives. • In North America: • We purchase 200.000 tm/annum of paddy rice. • We purchase 200.000 tm/annum of milled rice. • The bulk of our purchasing is from Arkansas and Memphis therefore our facilities are located in that regions. • We procure paddy rice directly from growers as well as from drying and storage operations throughout Arkansas.  • We purchase milled rice from a preferred group of vendors that meet our quality requirements. • Other sources: • We purchase on paddy basis other 500.000 Mt/annumfrom origins as Uruguay, Guyana, Thailand, Egypt and fragrant rice from India, Pakistan and Thailand.

  13. Rice Factories Spain • Our factories in Spain have a: • Milling capacity of: 500.000 mt/annum. • Parboiling capacity: 210.000 mt/annum. • Storage capacity: 182.000 mt. • The facilities are located in: • San Juan – Seville: Rice Mill, Parboiled Rice, Quick Rice, Ready Made Dishes and Packing. • Isla Mayor - Seville: Rice Mill. • Coria - Seville: Rice Mill. • Jerez: Microwave and Packing facilities. • Silla - Valencia: Rice Mill and Packing Facilities. • L´Aldea - Tarragona: Rice Mill and Flour Mill. • Tortosa - Tarragona: Packing facilities.

  14. Rice Factories Spain Tortosa - Tarragona L´Aldea Tarragona San Juan - Sevilla Silla - Valencia Isla Mayor-Sevilla Jerez - Jerez Coria - Sevilla

  15. Rice Factories EU. • Our factories in the European Union have: • Milling capacity of: 400.000 mt/annum. • Storing capacity of: 80.000 mt/annum. • The facilities are located in: • Cambridge, UK: Rice Mills. • Liverpool, UK: Rice Mills and Flour Mill. • Orbaek, Denmark: and IQF Rice and Pasta. • Antwerp, Belgium: Rice Mill, Flour Mill and Packing facilities. • Hamburg, Germany: Rice Mill and Packing facilities. • Vercelli, Italy: Rice Mill. • Coruche, Portugal: Rice Mill and Packing facilities.

  16. Rice Factories EU. Antwerp Danmark Liverpool Hamburg Cambridge Vercelli Coruche

  17. Rice Factories USA. • Our plants in US are located in: • Carlisle, AR. Parboil and Crisping: • Capacity for Parboil and Milling operation 80.000 mt/annum. • Capacity for Crisping and Packaging 1.800 mt/annum. • Brinkley, AR. Instant Rice Processing and Milling: • Capacity for Instant Rice Processing and Packaging 26.000 mt/annum. • Capacity for Rice Milling 47.000 mt/annum. • Clearbrook, MN. Parboiling, Roasting, and packaging of Wild Rice: • Capacity for Parboiling/Roasting of green Wild Rice 25.700 mt/annum. • Memphis, TN. Next slide.

  18. Rice Factories USA. Memphis Rice Factory • Construction on the estimated 110 MAUD Ebro’s., rice processing and packaging plant in Memphis will be finished by 1Q11 but is already starting to work. • It will add a 400,000-square-foot state-of-the-art plant that will include an on-site warehousing and distribution center. • The new facility will be located on 31 acres lands property of the Group. • It will have instant rice processing and packaging of instant and milled rice: • Capacity for instant rice processing and packaging 91.500 mt/annum. 8 processing lines and 9 packaging lines. • Milled Rice packaging capacity 152.500 mt/annum. 11 packaging lines.

  19. Other Rice Affiliates • We are also placed in: • Egypt: Herba Egypt • Milling capacity of: 100.000 mt/annum. • Storage capacity: 20.000 mt • Morocco: Mundiriz • Milling capacity of: 60.000 mt/annum. • Parboiling capacity: 18.000 mt/annum. • Storage capacity: 25.000 mt • Thailand: Herba Bangkok • Processing and packing capacity of: 100.000 mt/annum. • Storage capacity: 20.000 mt • Uruguay: Joint Venture with Casarone • 20.000 ha of rice rotating with wheat. Production 40.000 mt/annum of paddy rice. • 180.000 mt/annum of rice milled and parboiled.

  20. Other Rice Affiliates Uruguay Herba Bangkok

  21. 3 PASTA BUSINESS

  22. The Pasta Business • Our first step in the Pasta business was the acquisition of Panzani in 2005 (€639 m). • Panzani was the leading dry pasta, fresh pasta, rice and sauces branded leader in France. It brought to our group an expertise in pasta marketing and R+I+D, along with a specialized management team that allowed us to transfer all these knowledge to other countries. • Panzani was the perfect platform to develop a pasta business, offering know-how and product innovation, allowing those new products to be introduced on markets on which we were already present. • In 2006 we bought New World Pasta (“NWP”), the pasta branded leader in USA and Canada, it was a company that was getting out of Chapter 11, clearly underinvested in R+D and A&P. We integrated NWP with our rice businesses in North America generating important synergies. • In 2008 we acquired Birkel, the branded pasta leader in Germany. • Our strategy in pasta is focused in: • Convenience, e.g.: microwave products, quick cook, etc. • Health, e.g.: pasta enriched with vegetables, whole grain pasta, high fiber white pasta, etc. • Taste/Ethnics, e.g. Fresh pasta, fresh sauces, Halal, etc.

  23. The Pasta Division Market Shares Pasta Sauce Fresh Pasta

  24. The Pasta Division Main Brands

  25. Pasta Raw Material Purchases • In Europe: • We purchase 582.000 tm/annum of durum wheat. • 524.600 tm/ annum come from France. • 57.400 tm/annum come from North America. • 100% of French durum wheat purchase is done to cooperatives. In France the 60% of the purchases are made through three years contract where the price is fixed at the average price of the market. • The North American 100% durum wheat purchases for Europe are made from brokers. • In North America: • We purchase 280.000 tm/annum of durum wheat. • 196.000 tm/annum come from the Northern Tier (Dakotas). • 28.000 tm/annum come form the desert (California). • 56.000 tm/annum come from Canada (Saskatchewan and Alberta). • All purchases from the Northern Tier are made on the open market, in the desert we contract acres with farmers, and in Canada is through the Canadian Wheat Board.

  26. Pasta Factories EU. • Our facilities in EU are located in: • France: • Three mills: • Gennevilliers (Paris): with a capacity of 130.000 tm/annum. • Littoral (Marseille): with a capacity of 65.000 tm/annum. • Saint Just (Marseille): with a capacity of 130.000 tm/annum. • Two plants of dry pasta: • Nanterre (Paris): with a capacity of 87.000 tm/annum. • La Montre (Marseille): with a capacity of 76.000 tm/annum. • Two plants of fresh pasta: • Saint Genis Laval (Lyon): with a capacity of 20.000 tn/annum. • Lorette (Lyon): with a capacity of 16.000 tn/ annum. • A plant of cous cous • Vitrolles: with a capacity of 50.000 tn/annum. • Germany: • Two plants of dry pasta: • Mannheim: with a capacity of 66.000 tm/annum. • Waren: with a capacity of 14.000 tm/annum.

  27. Pasta Factories France

  28. Pasta Factories Germany

  29. Pasta Factories USA. and Canada • We have four pasta factories between US and Canada. • Three in US: • Winchester, Virginia: this factory has a milling capacity of: 90.000 tm/annum. • St. Louis, Missouri: this factory has a milling capacity of 81.000 tm/annum. • Fresno, California: this factory has a milling capacity of 34.200 tm/annum. • One in Canada: • Montreal, Quebec: this factory has a milling capacity of 50.400 tm/annum.

  30. Pasta Factories USA. And Canada

  31. 4 CONCLUSION

  32. Conclusion We are a Food Group specialized in products highly related with their raw materials, rice and durum wheat. Originally we started as a sugar and dairy company and nowadays we are focused in rice and pasta therefore our relationship with our raw material providers is very important. We maintain strong and long lasting relations with the local farmers; we understand that the relationship between farmers and industrials is a long term one, based on cooperation and respect. We purchase around 2 million tones of rice a year and some 1 million tones of durum wheat what shows the magnitudes we are used to trade. We have a clear and strong commitment to develop ourselves as a world leading group in meal solutions based on rice and pasta and therefore we highly invest in R+D and marketing. We want to upgrade our portfolio with more value added products. We are a Group with high speed of adaptation to the environment and specificities of each country. We have developed a skill of integration, always respecting the local cultures of each business and local management.

  33. 5 ANNEX I. MAIN FIGURES

  34. RICE Main Figures- Rice Business

  35. Main Figures- Pasta Business

  36. Main Figures- Consolidated

  37. Main Figures- Balance Sheet After the sale of the Dairy Division (€630m) that took place in September we are debt free.

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