Capital Markets Day - PDF document

1 Capital Markets Day Company Presentation
Capital Markets Day Company Presentation Page 2 Why are we here today ? MOWI • Global brand strategy – propose new company name MOWI • Integrated value chain important for

2 the success of the brand • Increased
the success of the brand • Increased value creation for consumers and our share holders • Increased focus on quality and differentiation • The future of salmon, MOWI Brandin

3 g Objectives Page 3 € 35m Brand inves
g Objectives Page 3 € 35m Brand investment in next 2 years in branded turnover by 2025 Brand opportunity additional EBIT (cash break even by 2022) € 1bn € 100m Company Presen

4 tation Page 4 The MOWI value chain Bre
tation Page 4 The MOWI value chain Breed Feed Smolt At sea Harvesting Processing New product development Food Company Presentation Page 5 MOWI breeding network MOWI BREEDING CHIL

5 E MOWI BREEDING CANADA WEST MOWI BREEDI
E MOWI BREEDING CANADA WEST MOWI BREEDING CANADA EAST MOWI BREEDING NORWAY MOWI BREEDING UK Company Presentation Page 6 MOWI - clear benefits to control breeding • Mowi fish

6 can be selected from a large population
can be selected from a large population – capacity 450 mill eggs • Mowi fish can through careful selection become very special • Quality traits has high heritability • Our ow

7 n breed and feed makes a difference on t
n breed and feed makes a difference on the end product. Company Presentation Page 7 Animal Breeding - Heritability h 2 = 0 means everything is explained by environment Heritability

8 (h 2 ) Genotype Environment Phenotype h
(h 2 ) Genotype Environment Phenotype h 2 = 1 means everything is explained by genetics Company Presentation Page 8 The good news for MOWI H 2 = 0.35 H 2 = 0.47 Good news : Qualit

9 y traits higly heritable Good news : B
y traits higly heritable Good news : Breeding can permanently impact the quality of the salmon GROWTH COLOUR Company Presentation Page 9 MOWI feed MOWI FEED NORWAY MOWI FEED UK C

10 ompany Presentation Page 10 MOWI feed
ompany Presentation Page 10 MOWI feed • “MOWI recipe” • High in Omega 3 • Specific mix of vitamins and natural color • Proactive food safety programs, such as mari

11 ne oil cleaning Company Presentation Pa
ne oil cleaning Company Presentation Page 11 MOWI farming network Chile Canada West Norway Ireland Scotland Faroe Island Canada East MOWI fish will be raised in selected MOWI fa

12 rms Our farmers are out there every day
rms Our farmers are out there every day caring for the fish you eat Company Presentation Page 14 MOWI VAP processing, sales & marketing network Chile, sales & processing Canada, S

13 ales &processing USA, Sales & processi
ales &processing USA, Sales & processing Scandinavia, Sales UK & Ireland, Sales & processing Spain, Sales & processing Poland, Sales & processing DACH & CEE, Sales & processi

14 ng BeNeFra , Sales & processing Japan,
ng BeNeFra , Sales & processing Japan, Sales & processing South Korea, Sales & processing China & Taiwan, Sales & processing Vietnam, processing South East Asia, Sales Company

15 Presentation Page 15 MOWI – Process
Presentation Page 15 MOWI – Processing and sales • Efficient processing facilities in 24 countries, close to the consumer • High level on food safety and traceability, all

16 certified. • Competent teams dedicate
certified. • Competent teams dedicated to product development in all markets • Through advanced grading and specific quality criteria we can select the best MOWI fish for you.

17 • Highly competent marketing/sales org
• Highly competent marketing/sales organization with global outreach • Specialized our branding capability Company Presentation Page 17 Key drivers in MOWI products Taste Conv

18 enience Health Company Presentation Page
enience Health Company Presentation Page 18 MOWI Summary • Increased value creation for consumers and our share holders • Company name the same as the brand • Long term pro

19 jects with clear targets, 2025 �
jects with clear targets, 2025 � EUR 1 BN of sales as branded, � EUR 100 m EBIT above normal salmon • Increased focus on quality • The value chain responsible

20 for the success of the brand • We hav
for the success of the brand • We have built inhouse branding competence, and will in 2019 launch the MOWI concept that is the salmon for the future • The MOWI story and cont

21 ent is impossible to copy • We can th
ent is impossible to copy • We can through our people and our unique value chain, offer the consumer a salmon experience no one can match! Thanks The category opportunity Categ

22 ory Opportunity Page 2 Our commercial s
ory Opportunity Page 2 Our commercial strategy • What ? - achieve a price/margin above our competitors in the market • How? - Strategic partnership with key clients based on

23 MHG unique capabilities - Brands Categ
MHG unique capabilities - Brands Category Opportunity Page 3 Our global VAP processing , sales & marketing network Chile, sales & processing Canada, Sales USA, Sales & process

24 ing Scandinavia, Sales UK & Ireland, S
ing Scandinavia, Sales UK & Ireland, Sales & processing Spain, Sales & processing Poland, Sales & processing DACH & CEE, Sales & processing BeNeFra , Sales & processing Japan,

25 Sales & processing South Korea, Sales
Sales & processing South Korea, Sales & processing China & Taiwan, Sales & processing Vietnam, processing South East Asia, Sales Category Opportunity Page 4 Marine Harvest S

26 ales & Marketing: top line growth and
ales & Marketing: top line growth and improved margins 0 20 40 60 80 100 120 140 160 0 500 1000 1500 2000 2500 3000 3500 4000 2011 2012 2013 2014 2015 2016 2017 Net fob sales Op EB

27 IT Turnover EUR millions) Category Oppor
IT Turnover EUR millions) Category Opportunity Page 5 Branding will turn our integrated value chain into shareholders value Value added capabilities Time Develop farming and bulk sa

28 lmon capabilities Develop PL and feed c
lmon capabilities Develop PL and feed capabilities Profitably increase value - adding with branded salmon in retail Future Branded salmon helps MH protect margins in cases of low

29 er consumer demand or in excess supply
er consumer demand or in excess supply situations Companies with strong consumer brands are typically valued at higher multiples Branded salmon will enable MH to build shareholde

30 r returns in the long run Management qu
r returns in the long run Management quotes Category Opportunity Page 6 Key consumer trends supporting the MOWI brand • Consumer trends in food - Health - Transparency - Sustain

31 ability - Authentic taste experience MOW
ability - Authentic taste experience MOWI Branding Strategy Category Opportunity Page 8 MOWI Branding Strategy • Creating unique salmon products with superior - Health benefits

32 - Transparency - Food enjoyment Category
- Transparency - Food enjoyment Category Opportunity Page 9 MOWI Branding Strategy • Based on our unique value chain Category Opportunity Page 10 MOWI Branding Strategy • And

33 delivering the message in an engaging
delivering the message in an engaging and relevant way - Going from re - active to pro - active communication C o n f i d e n t i a l c o n t e n t . P l e a s e d o n o t

34 s h a r e . T R A C E A B I L I T Y
s h a r e . T R A C E A B I L I T Y T O O L M O B I L E V E R S I O N S E E H E R E I N M O R E D E T A I L U S E R S C A N S Q R C O D E F R O M T H E P

35 A C K A G I N G Category Opportunity Pag
A C K A G I N G Category Opportunity Page 11 Branding Objectives € 35m Brand investment in next 2 years in branded turnover by 2025 additional EBIT (cash break even by 2022) €

36 1bn € 100m Category Opportunity Page
1bn € 100m Category Opportunity Page 12 MOWI Expansion plan 2019: Launch in Europe As from 2020: Continued roll - out in Europe, North America & Asia Thanks Value creation wit

37 h a global brand MH Capital Markets Day
h a global brand MH Capital Markets Day Edinburgh, 13 th November 2018 Victor Hugo – French writer 1802 - 1885 There is nothing more powerful than an idea whose time has come

38 MOWI – The Brand Project 3 So, what d
MOWI – The Brand Project 3 So, what do we have today? • A beautiful thriving business • With powerful competitive advantages • Leading edge compliance and working within the

39 natural environment MOWI – The Brand
natural environment MOWI – The Brand Project 4 We want to continue growing…faster than the food industry and our competitors. ..fueled by CONSUMER INSIGHTS Food consumption h

40 abits are changing Page 5 Source: 2018
abits are changing Page 5 Source: 2018 Seafood Report Kantar TNS / Kantar Worldpanel Consumer trends 36 % of consumers want to reduce their meat consumption 32 % of consumers want

41 to increase their fish consumption 2
to increase their fish consumption 2 times/week Recommended fish intake by international Health Authorities Demand for high quality opens up value opportunities Page 6 Consumer t

42 rends • 62 % choose high quality produ
rends • 62 % choose high quality products more frequently • 60 % are willing to pay more for a high quality product • 91 % want more transparency on food products • 9

43 1 % are sensitive to animal welfare â€
1 % are sensitive to animal welfare • 72 % think we should only consume fish products that are harvested in a sustainable manner Source : Kantar TNS FOOD 360 ° 2018 Marine Stew

44 ardship Council (2016): 16,876 consumer
ardship Council (2016): 16,876 consumers who purchased fish or seafood in the last two months Page 7 Brand opportunity Introducing …a global brand launch MOWI – The Brand Proje

45 ct • Builds competitive advantages •
ct • Builds competitive advantages • Generates people ´ s loyalty • Yields higher margins • Drives Category growth • Protects category reputation … engaging the targets th

46 rough COMMUNICATION and CREATIVITY Why
rough COMMUNICATION and CREATIVITY Why a global brand? CREATES VALUE Building Brand Love Higher price and margin And means VALUE So, how to achieve these objectives with Leveragin

47 g Consumer Insights, Communication & C
g Consumer Insights, Communication & Creativity MOWI? MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consisten

48 t brand appearance That tells our story
t brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting - edge in - store presence And an ambitious expansion plan M

49 OWI – The Brand Project A winning id
OWI – The Brand Project A winning idea that it is better, different and unique compared to competition Winning Idea 40.2 % 32.5 % ( Average in planned launch markets ) A win

50 ning concept Overall rating and purchas
ning concept Overall rating and purchase intention scores in planned launch markets ( Average in planned launch markets ) Organic Leading competitor 30.5 % (Top 2 winning concepts

51 average in planned launch markets) Page
average in planned launch markets) Page 15 Page 15 Our heritage is about caring. We are pioneers of farmed Atlantic salmon with over 50 years of care and craftsmanship in eve

52 rything we do. CARING Design guideline
rything we do. CARING Design guideline - Company Page 16 We care for our MOWI salmon throughout the value chain, from feed to plate We care for our salmon Design guideline - Co

53 mpany Page 17 We breed our salmon susta
mpany Page 17 We breed our salmon sustainably to keep the impact on our surroundings to a minimum . We care for the environment Design guideline - Company Page 18 We care - beca

54 use good food is about caring for yourse
use good food is about caring for yourself and for the ones you love. Therefore, we offer a salmon that is extra - nutritious and healthy, truly delicious and convenient to enjoy.

55 We care for our consumers MOWI – The
We care for our consumers MOWI – The Brand Project There are salmon SALMON IS GOOD There’s MOWI MOWI IS GOODNESS MOWI – The Brand Project A winning credible idea With a superi

56 or product and competitive edge And a su
or product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting - edge

57 in - store presence And an ambitious exp
in - store presence And an ambitious expansion plan Page 23 Higher Omega 3 MOWI � ( Ω3 + P27 + Mbl ) Redder color Softer Marbling Careful Selection Sc So, what’s the M

58 OWI winning product formula? Superior
OWI winning product formula? Superior product Page 24 Superior Health Superior product MOWI � ( Ω3 + P27 + Mbl ) Superior Quality & Taste Superior Care Sc So, what’s

59 the MOWI winning product formula? A p
the MOWI winning product formula? A premium range to satisfy all consumer needs Page 25 Superior product Delicious high quality salmon ready to eat in a variety of preparations

60 The absolute epitome of salmon quality
The absolute epitome of salmon quality, our hand picked broodstock salmon for the top stores and restaurants Delicious high quality salmon ready to cook MOWI – The Brand Proje

61 ct Something you will taste in a few m
ct Something you will taste in a few minutes … MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand a

62 ppearance That tells our story in a cred
ppearance That tells our story in a credible way Building occasions to expand the category Through a cutting - edge in - store presence And an ambitious expansion plan What do we wan

63 t from packaging ? Page 28 Brand Design
t from packaging ? Page 28 Brand Design • Let the product talk • Maximize consumer experience • Iconize the brand • Bring trust and confidence MOWI – The Brand Project

64 Caring means full transparency We wil
Caring means full transparency We will do that through full traceability The longest TVC in the world : MOWI Screen Saver Brand transparency 24/7 full - time transparency on

65 your screen The longest TVC in the wor
your screen The longest TVC in the world : MOWI Screen Saver MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and cons

66 istent brand appearance That tells our s
istent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting - edge in - store presence And an ambitious expansion plan M

67 OWI - The book (Silver Harvest) MOWI â
OWI - The book (Silver Harvest) MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tel

68 ls our story in a credible way Building
ls our story in a credible way Building occasions to expand the category Through a cutting - edge in - store presence And an ambitious expansion plan MOWI – The Brand Project OUTDO

69 OR MOWI – The Brand Project PRINT MOW
OR MOWI – The Brand Project PRINT MOWI – The Brand Project MOWI – The Brand Project MOWI – The Brand Project MOWI – The Brand Project A winning credible idea With a sup

70 erior product and competitive edge And a
erior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting - ed

71 ge in - store presence And an ambitious
ge in - store presence And an ambitious expansion plan MOWI – The Brand Project A winning credible idea With a superior product and competitive edge And a superb and consistent bra

72 nd appearance That tells our story in a
nd appearance That tells our story in a credible way Building occasions to expand the category Through a cutting - edge in - store presence And an ambitious expansion plan Brand Ambi

73 tion Project Price (1) Premium target Vo
tion Project Price (1) Premium target Volumetric (2) Price premium Business Plan (3) Price premium Project Price (1) Premium target Volumetric (2) Price premium Business Plan (3) Pric

74 e premium 20% 20% 20% 20% 20% 20% France
e premium 20% 20% 20% 20% 20% 20% France 20% 20% 20% 20% 20% 20% Poland MOWI Full Range (4) Nielsen test results in planned launch markets of Marine Harvest Retail market value afte

75 r 2 years Est. +28 % Brand ambition Pa
r 2 years Est. +28 % Brand ambition Page 86 ALL THIS WHILE TRANSFORMING THE COMPANY ASA MOWI – The Brand Project Brand presentation Page 86 OUR HERITAGE OUR VISION OUR VALUES O