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Corporate Presentation November, 2010. INDEX 1.Introduction 2.Rice Business 3.Pasta Business 4.Conclusion 5.Annex I. Main Figures 6.Annex II. Product.

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Presentation on theme: "Corporate Presentation November, 2010. INDEX 1.Introduction 2.Rice Business 3.Pasta Business 4.Conclusion 5.Annex I. Main Figures 6.Annex II. Product."— Presentation transcript:

1 Corporate Presentation November, 2010

2 INDEX 1.Introduction 2.Rice Business 3.Pasta Business 4.Conclusion 5.Annex I. Main Figures 6.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 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 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 Breakdown of Ebitda Spain

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 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 COUNTRYMARKET SHARE VOLUMEN Spain24,0% Portugal16,0% Germany20,0% Belgium31,7% P. Rico23,0% USA24,0% Canada (Instant Rice)65,0% France23,0%

11 Rice Brands

12 Rice Raw Material Purchases In Europe: We purchase tm/annum of rice. All purchases are made to farmers and cooperatives. In North America: We purchase tm/annum of paddy rice. We purchase 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 Mt/annum from 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: mt/annum. Parboiling capacity: mt/annum. Storage capacity: 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 L´Aldea Tarragona Coria - Sevilla Tortosa - Tarragona Isla Mayor-Sevilla Silla - Valencia San Juan - Sevilla Jerez - Jerez Rice Factories Spain

15 Rice Factories EU. Our factories in the European Union have: Milling capacity of: mt/annum. Storing capacity of: 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 Hamburg Liverpool Antwerp Vercelli Coruche Cambridge Danmark Rice Factories EU.

17 Rice Factories USA. Our plants in US are located in: Carlisle, AR. Parboil and Crisping: Capacity for Parboil and Milling operation mt/annum. Capacity for Crisping and Packaging mt/annum. Brinkley, AR. Instant Rice Processing and Milling: Capacity for Instant Rice Processing and Packaging mt/annum. Capacity for Rice Milling mt/annum. Clearbrook, MN. Parboiling, Roasting, and packaging of Wild Rice: Capacity for Parboiling/Roasting of green Wild Rice 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 mt/annum. 8 processing lines and 9 packaging lines. Milled Rice packaging capacity mt/annum. 11 packaging lines.

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

20 Other Rice Affiliates Herba Bangkok Uruguay

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 COUNTRYMARKET SHARE VOLUMEN Germany11,2% Belgium13,7% Cezch Republic12,5% USA25,8% Canada39,4% France40,8% Sauce COUNTRYMARKET SHARE France33,6% COUNTRYMARKET SHARE France30,5% Fresh Pasta Pasta The Pasta Division Market Shares

24 The Pasta Division Main Brands

25 Pasta Raw Material Purchases In Europe: We purchase tm/annum of durum wheat tm/ annum come from France 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 tm/annum of durum wheat tm/annum come from the Northern Tier (Dakotas) tm/annum come form the desert (California) 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 tm/annum. Littoral (Marseille): with a capacity of tm/annum. Saint Just (Marseille): with a capacity of tm/annum. Two plants of dry pasta: Nanterre (Paris): with a capacity of tm/annum. La Montre (Marseille): with a capacity of tm/annum. Two plants of fresh pasta: Saint Genis Laval (Lyon): with a capacity of tn/annum. Lorette (Lyon): with a capacity of tn/ annum. A plant of cous cous Vitrolles: with a capacity of tn/annum. Germany: Two plants of dry pasta: Mannheim: with a capacity of tm/annum. Waren: with a capacity of 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: tm/annum. St. Louis, Missouri: this factory has a milling capacity of tm/annum. Fresno, California: this factory has a milling capacity of tm/annum. One in Canada: Montreal, Quebec: this factory has a milling capacity of 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 Main Figures- Rice Business  RICE

35 Main Figures- Pasta Business

36 Main Figures- Consolidated Thous EUR9M089M099M10 10/09CAGR 10/08 Sales1,333,5971,342,4831,253, %-3.0% Advertising53,98661,48264,7745.4%9.5% EBITDA148,762171,259197, %15.2% EBITDA margin11.2%12.8%15.8%23.5%18.9% EBIT108,360131,665157, %20.6% Operating profit128,969117,977142, %5.1% Profit before tax69,51999,176135, %39.5% Discontinued operations46,99767,008265, %137.8% Net Profit92,698134,701346, %93.2% ROCE %27.6%

37 Main Figures- Balance Sheet After the sale of the Dairy Division (€630m) that took place in September we are debt free. Thous EUR30 Sep 0831 Dec 0830 Sep 0931 Dec 0930 Sep 10E31 Dec 10E10/09CAGR E10/08 Net Debt1,233,2711,055,853545,272556,800-84,30670, %-74.2% Average Debt1,205,8931,208,078770,943716,725508,386n.d-34.1%-23.0% Equity1,189,1931,203,1311,228,3261,280,3221,500,3211,544, %13.3% Leverage ND103.7%87.8%44.4%43.5%-5.6%4.5%-112.7%-77.3% Leverage AD101.4%100.4%62.8%56.0%33.9%46.4%-46.0%-32.0% x EBITDA (ND) x EBITDA (AD)5.42.9n.a.


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