overview wessanen april 2011

Royal Wessanen nv Who we are: an overview

(updated: April 2011)

“To make our brands most desired in Europe”

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Royal Wessanen - who we are

• A long and rich history as a food company

• Incorporated in 1765; Royal since 1913; listed on Euronext since 1959

• 2010 revenue €712 mln; over 2,200 employees

• Headquartered in Amsterdam

• Operations in the Benelux, France, Germany, UK, Italy, USA

• A leading player in the major organic food markets in Europe

• 2 non-core segments– Frozen Foods: A leading producer/marketer of frozen snacks in the Benelux– ABC: A leading producer fruit drinks/cocktail mixers in the US

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16%

13%

32%

39%

WE GroceryRevenue €231 mlnEBITDA €12 mlnAvg. Capital Employed €66 mlnFTE’s 435

Revenue 2010 €712 mln

Frozen FoodsRevenue €116 mlnEBITDA €9 mlnAvg. Capital Employed €56 mlnFTE’s 505

WE HFSRevenue €273 mlnEBITDA €11 mlnAvg. Capital Employed €95 mlnFTE’s 837

ABCRevenue €93 mlnEBITDA €2 mlnAvg. Capital Employed €46 mlnFTE’s 382

Corporate centre &non-allocated EBITDA €(11) mlnFTE’s 63

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A long and rich history2015 will mark 250th anniversary of Wessanen

Incorporated in 1765 around river De Zaan, when Adriaan

Wessanen started to trade in mustard, canary and other seeds

Around 1910 introducing first consumer products like

oatmeal and cocoa

Distinguished title Royal in 1913 (98 years ago!)

Listed on Euronext Amsterdam since 1959

Seventies, eighties, nineties - range of acquisitions, like

1986 - Tree of Life, Inc

1993 - Merger Bols and Wessanen (split 1998)

2000/01 - Acquisition Distriborg, Zonnatura, Natudis

2002 - Divestment Leerdammer

2006 - Divestment Delicer/Delicia

2010 - Divestment Tree of Life, Inc

Strategic reorientation in 2009 focus on organic food in Europe

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Key figures

In € million FY 2010 FY 2009

Revenue ¹ 712 703

EBIT ¹ 5.3 (44.4)

‘Normalised’ EBIT ¹ 19.8 13.3

Net result ² (6.1) (219.7)

Shareholders’ equity 177 150

Average capital employed 269 309

Net debt 29 175

Average number of FTEs 2,276 2,139

¹ Continuing operations; ² Attributable to Wessanen equity holders

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Organic food market is still attractive

Consumer perspective Organic food engaged mainstream consumers Penetration 70% consumption per capita low Mainstream consumer willing to pay price premium (~20%) Consumers seek clear consumer benefits from organic

Market perspective Total European organic market €19 bn in 2010

Historically, growth ±10% p.a. up to 2008 In 2010, organic markets showed limited growth

Particularly HFS being weak Organic food industry dynamics become similar to conventional

‘FMCG’ markets Per capita consumption still low

Organic 2.6% of total spending on food/beverages

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Organic food - an evolving European market place

One single European certification

Organic has hit mainstream consumers

Next generation organic products have to deliver clear

consumer benefits

Consumer price based on perceived value and consumer

benefits

Private label has become more a price reference point

‘Organic’ image builder for grocery

More competition between HFS and grocery

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Our Vision

“To make our organic brands most desired in Europe”

Our organic brands …

… provide you the organic benefits and experience of pure nutrition & real taste,

… contribute to social & ethical values and

… offer a variety relevant food products which are affordable

Most desired …

… by the growing organic mainstream consumer and our core consumer base

… because of our pioneering and prominent organic brands across Europe

… in grocery (both dedicated & mainstream shelf) and specialty channels

… as organic authority towards all relevant stakeholders

… in our chosen markets: France, Benelux, UK, Germany and Italy

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Our Mission

“Our organic food, your natural choice”

Why should consumers buy into our organic food? Organic food is good for you, our living planet and the next generation An important feature of organic food is that it is sustainable in every

aspect Our pioneering organic food brands make the difference

What makes our organic food your natural choice? We want to make the difference with daily organic grocery shopping We want to contribute to making our dietary pattern more organic and

making the world of food a bit more organic We need to make organic nutritious, tasteful and affordable for

consumers Because of the three motives above, our organic food makes sense

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Brands in

Grocery

Roadmap focused on 3 different business models

DescriptionDescription

Sourcing/developing, marketing and selling of own brands to grocery

• Including distribution to distribution centers and/or stores

Countries, Brands & EntitiesCountries, Brands & Entities

France: Bjorg, Benelux: Zonnatura, Biorganic, MerzaUK: Kallo, Whole EarthGermany: Whole EarthItaly: Bjorg

Sourcing/developing, marketing and selling of own brands to HFS

• Via wholesaler in Germany• Direct to stores (France, NL)

France: Bonneterre, EvernatNL: Ekoland, De Rit, Fertilia Germany: Allos, Tartex, De RitBrands

in HFS

Sourcing, category management, sales and distribution to HFS stores

• Focus on full range product portfolio and high share of products per store

France: Biodistrifrais, KalisterraNL: Natudis, KroonBelgium: HagorUK: TOL UK

Whole-sale

In HFS

BusinessBusiness

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Our building blocks

There are six important assets on which Wessanen’s success is built,

reasons why our brands will be your natural choice and why

Wessanen can make its organic brands the most desired in Europe:

I. Passionate people

II. Pioneering brands

III. Customer partnerships & multi-channel approach

IV. Network of strategic supplier partnerships

V. European scale

VI. Unique expertise & industry authority

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European brand-platform-category map

Organic Nutrition– Dairy alternatives– Biscuits (nutrition)– Bread replacers– Cereals– Tea– Spreads (nutrition)

Organic Taste-Indulgence– Spreads– Biscuits– Cereals – Juices

Organic Taste-Cooking– Condiments– Bouillon, Stock & Gravies– Meal components – Ready meals

France

Grocery HFS

TBD TBD

TBD

Netherlands

Grocery HFS

Germany

Grocery HFS

UK

Grocery HFS

TBD TBD

Other Europe

Grocery HFS

TBD

Consumer Benefit Platform

Organic Basics– Multi categories TBD TBD TBD TBD TBD TBD TBD TBD

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Financial Holding

Requiring strong central steering and different organisation and governance model

Strategic Architect

Strategic Orchestrator

Operator

Financial

Strategic guidelines

Strategic development

Operational

Stand-alone business

Shared skillsShared

business systems

Same business systems

Degree of Business Integration

Natu

re o

f C

orp

ora

te G

uid

an

ce

Wessanen in

transit

ion

Maximize value creation by

adapting governance model, decision rules and

effciency and effectiveness HQ support functions

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Strategic objectives 2011-2013

• Top-line growth

– Market share gains in core categories and brands

– Add-on acquisitions

• Improve EBIT-margins

– Increase gross margins (central Sourcing savings, richer product mix)

– Manage non-core brands for cash

– Increase capacity utilisation own factories

– Reduce overhead costs

• Grow our export business and aim to establish footprint in other European countries

• Improve operational performance / Establish cross-country organisation

• Raise the overall talent bar / Increase people engagement

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Wessanen Europe GroceryFocus on organic food being sold via grocery.

Active in Benelux, France, Germany, Italy and UK via own operations.

The grocery channel involves sourcing, development, marketing and

selling of own brands to grocery retailers. Deliverance of our products

both to distribution centres and directly to stores.

Our brands include Bjorg, Whole Earth, Kallo, Zonnatura and Biorganic.

• Revenue €231 mln (2009: €221 mln)

• FTEs 435 (of which in the Netherlands 37)

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Point of Sales

PR

100,000 Samples

Promotions

Print

Radio

Ambientnear

outlets

Whole Earth - Munich introductionSecond ’City campaign’ after successfull launch Hamburg

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Wessanen Europe HFSFocus on organic food being sold via Health Food Stores (HFS).

Active in Benelux, France, Germany and the UK; also export

Two business models:

i) Brands involve sourcing, development, marketing and selling of

our own brands to HFS. Distribution is either via wholesalers (in

Germany) or direct to stores (France, the Netherlands).

ii) Wholesale involves sourcing, category management, sales and

distribution to HFS. Full-range product portfolio and high share of

products per store.

2010 revenue €273 mln

FTEs 837 (of which 203 in the Netherlands)

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•Hilversum

•Zwolle

•Almere (opened 31 March)

•Apeldoorn (opening in summer)

5-10 openings per year

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Frozen Foods

Produces and markets frozen snack products in out-of-home, grocery andfoodservice channels in Benelux and via export. Strong market positions.

Beckers Benelux: production in Katwijk (spring rolls) and Deurne (breadsnacks). Production and sales of strong brands like Beckers and Bicky in outof-home, grocery and foodservice channels in the Benelux.

Favory Food Group (64.1%): production facilities in Bocholt (B) (meatsnacks) and Deurne (meat and breadcrumb snacks). Production basic snack assortment for Beckers and production and saleprivate label products to major retailers and out-of-home wholesalers.


FTEs 505 (of which 369 in the Netherlands)

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American Beverage Corporation (ABC)

In North America, one of the leading producers of non-carbonatedvalue-priced fruit drinks (Little Hug) and premium cocktail mixers(Daily’s)

A variety of products from kids’ drinks to cocktail mixers. It isbased in Verona (PA), where it also has a large production plant.

ABC operates within both grocery and out-of-home channels using anextensive network of brokers and distributors to market and sell its productsthroughout the United States.

We intend to divest, in principle, ABC in 2011


FTEs 382 (yearend 2010)

Royal Wessanen nv

“To make our brands most desired in Europe”