Issuu

An agri-food leader in France and Europe

Catered food division: No. 2 in France

• €655 million in revenue

• Present in more than 50% of the fresh Catered food segment

€4.4 billion in revenue in 2020-2021

Poultry division: No. 1 player in France

• Revenue topping €3.3 billion

• 40% of the French market

• for national and regional brands

“Acting with our regions”

• Leader in ready meals and Asian specialties

• A leading brand: Marie

€830 million generated internationally (Poland, Hungary, Belgium and exports), i.e. 19% of total revenue

SUSTAINABLE farming LIVING AND WORKING together

• Poland, Hungary and Belgium

• Know-how in speciality areas

• Revenue topping €445 million

• High ambitions International activity: a growth driver

€1.5 billion in shareholders’ equity

Investments totalling more than €210 million

An unprecedented year

Work organisation disrupted by health conditionsSIGNIFICANT IMPACT ON BUSINESS...

Changes in the product mix and customer mixInstitutional food services and commercial catering adversely affected by health restriction measures

+ Increase in retail demand for staple products …BUT ALSO OPPORTUNITY AND SUCCESS

Demonstration of our know-how to our customers thanks to the agility of our tools and logistics

+ High levels of staff responsiveness and mobilisation

In 2020, proven agility

MOBILISED TO SERVE OUR CUSTOMERS AND CONSUMERS

Protect our 23,000 employees

To help employees

• Implementation of prevention, health and safety measures

• Limited use of part-time employment schemes

• Exceptional bonus of €6m to recognise employees’ efforts

Continue to supply and deliver to our customers

Carry on with our mission to provide healthy food to consumers

In manufacturing and logistics

• 50 sites with steep increases in volume,

• 15 sites showing a decline of 50-80% due to the sharp fall in catering activity and exports of speciality products

• Temporary closure of 4 sites

From a sales standpoint

• Transfer of volume to retail with volumes limited to our order preparation capacities

• Solid performance from processed and Catered food division products across our brands

• Year-end holiday sales in line with expectations

BUSINESS

Poultry

Contraction limited thanks to strong positionsin home consumption

International

A year affected by the health crisis despite contribution from external growth operations

Catered food division

Excellent performance for the fiscal year

FINANCE

OUTLOOK

Satisfactory results in light of the context

Solid positions to benefit from the recovery and transformation in consumption

Poultry

Contraction limited thanks to strong positions in home consumption

Présentation LDC -SFAF Résultats annuels 2020-2021 -Mai 2021

Poultry consumption held up thanks to home consumption

Poultry: stable revenue thanks to acquisitions and home consumption

Efforts transferred to retail to address the rise in home consumption

Retail: Reinforce our penetration in processed foods

• Growth thanks to Louéand our regional labels

PRODUCTS

• Cut poultry products prioritised

• Drop in certified chickens with the closure of rotisseries

• Good performance in ready processed products for retail

Year-end holiday sales in line with expectations

Excellent performance for brand-name processed products

Brand index (growth in volume versus N-1)

Year-end holiday sales in line with expectations

Change and breakdown in holiday revenue –2020 by distribution channel

+3.2% in value terms with stable volumes

International

A year affected by the health crisis despite contribution from external growth operations

Présentation LDC -SFAF Résultats annuels 2020-2021

Business still affected by the health crisis despite contribution from external growth operations

The health situation and exogenous factors are weighing temporarily on growth in value categories

revenue growth

At operating level

Off-setting between positive and negative effects

Harmonisation de méthodes comptables Effet devisesChiffre d'affaires 2020 International

2019 revenue Contribution from external growth Product mix (processed, free range) Duck/geese Chicken Drop in revenue sold to the third party

Chiffre d'affaires 2019 Contribution des croissances externes Mix produits (Elaborés, Plein air) Canards oiesPouletBaisse du chiffre d'affaires vendus aux tiers

Marnevall (10 months) and Kiplama (6 months)

Marnevall(10 months) and Kiplama(6 months)

Harmonisation or accounting methods Currency effect 2020 revenue

> Direct impact on the period’s earnings

INTERNATIONAL (EUROPE)

Sound growth in processed and free range chicken

Change in product mix

Change in customer mix

 Canned: growth during the health crisis, especially in the first halfwith adapted products (for storage)

 Certified/free range chickens: strong growth as consumers were seeking reassurance

 Successful consolidation of Kiplama and Marnevall

 Chicken: contraction linked to impact of COVID-19 on exports and one voluntary brand recall

 Specialities: business affected by European over-production of duck and goose

Catered food division

Excellent performance

Présentation LDC -SFAF Résultats annuels 2020-2021 -Mai 2021

Growth

in sales by volume and value despite COVID

LDC out-performs the market

Breakdown of sales and growth in volumes

Fresh and frozen catered food products by network (2020-2021)

FOCUS ON RETAIL

Fresh catered food products in value terms (2020-2021)

74% of division revenue from retail

Frozen catered food products in value terms (2020-2021) 26% of

Fresh catered food : performance built to last

Change in sales of fresh catered food by category in retail and HD (Value for the period March 2020 to February 2021)

Frozen

catered food : excellent performance for all product categories

Change in sales of frozen catered food by category in retail and HD (Value for the period March 2020 to February 2021)

LDC is present in 73% of frozen catered food

The recipe for success

Proven organoleptic properties (flavour, aroma, taste)

603,5616,5 644,9655,1

Finance

Satisfactory results in light of the context

Présentation LDC -SFAF Résultats annuels 2020-2021 -Mai 2021

Stable revenue thanks to acquisitions and home consumption

Change in revenue by business division

Growth in current operating income by division

Growth in current operating income of the poultry division

Simplified balance sheet at 28 February 2021

Industrial capex: a deliberate strategy

Machine room: Energy savings

Sablé investment

Furnishing of social areas

Alocationintheheartofour productionbasinaroundthe DrosedandSedarslaugtherhouses thatstrengthensourindependence andthespecialisationofour productionresources

Siedlce plant

CATERED FOOD

Proposal to be submitted to the Shareholders’ Meeting of 19 August 2021 to pay a dividend of €1.80 per share

Outlook

Solid positions to benefit from the recovery and transformation in consumption

Présentation LDC -SFAF Résultats annuels 2020-2021 -Mai 2021

Context expected to grow more favourable in 2021

First half of year still adversely affected by the health crisis

Sustained tension in commodities markets

Change in consumption influenced by the details of the recovery

Integration of Ronsard after approval from the ADLC

Gradual reopening of borders and resumption of catering business

Consumption habits established for the long term

1 COMPLETE

FINALISE PRICE ADJUSTMENTS

BUILD

SUPPORT OUR CUSTOMERS THROUGH CHANGES IN CONSUMPTION HABITS

Commodities: further increases on the horizon

Avian influenza: a robust health protocol in place to enable LDC to cope

1

Negativeimpactofabout20%onPekingduck production,geeseinPolandand30%infattenedduck inFrance

ChickenproductioninPolandalsopenalised

Contextfavourabletoimplementingincreases

Healthsituationshouldfavourthecompaniesthathave implementedstrictsanitaryprotocolsandcanlimitthe consequencesofthepandemicontheirbreeding

Situation update

South West region

Wielkopolskie

Acquisition of the Ronsard group

• €160m in revenue

• €12m in operating losses in 2020

• 775 employees

• 700 partner breeders

• 7 sites

• A subsidiary of the Eureden cooperative

2 COMPLETETHE RONSARDPROJECT

• FourthlargestplayerinFrance

• Presentinhistoricalproductionregions,facilitating supplyqualityandvolumes Ronsard’s attributes

ADLC decision

• LDCistakingover3sitesinBrittany,AquitaineandIlede-France

• TheMorbihan-basedcompanyCADFisnowexcluded fromthescopeandwillremainthepropertyof Eureden.

• 3sitesintheBresseregion(L’Ain)willnotbekeptby theLDCgroup;theywillbesold.

• Thesefournon-acquiredsitesaccountedfortotal revenueof€38min2019-2020andhave170 employees

The production strategy for the operation

In 2021

3 May Before the end of 2021

TAKE POSSESSION OF ASSETS

Create autonomous companies LOSSE VOLAILLE DES LANDES and RONSARD ILE-DE-FRANCE

Early June

BIGNAN SITE: TRANSFER CHICKEN AND TURKEY CUTS BUSINESS TO SBV

BEGIN MODERNISATION WORK

€10m in investments

TRANSFER PROCESSED FOODS BUSINESS TO THE BIGNAN SITE

Goal: 10,000 metric tonnes With 5,000 T Ronsard + 5,000 T contributed by

2022 BUILD A NEW SLAUGHTERCUTTING SITE

€60m in total investments

2023

OPEN THE SLAUGHTERCUTTING SITE

400,000 chickens/wk. Employ 200 people in the region

Meet an increasing demand for products of French origin

COMPLETETHE RONSARDPROJECT

French origin

Consumer Choice: FRENCH Poultry

A long-standing approach integrated in the Group’s value proposition

Supply regions that offer guarantees on quality, traceability and proximity

Modern and competitive equipment for processed and cut products

A product offer that meets the needs of quick service restaurants in terms of packaging, cooking and storage

Increased volumes of French origin

100% French origin Brands can give their customers quality guarantee and reassurance

A major brand transitioning to French origin

100% French origin nuggets

Marie: performance built to last

100% of the Traditions d’Asierange advertises Nutriscore and product commitments in 2021.

SINCE ACQUISITION

Creation of 8 new stands

Refurbishementof 10 stands

Goals: 50 stands by the end of 2021 with brand diversification

Direct access to the LDC retail network

First shops in the LECLERC network

First non-market store at the SNCF train station in Cannes

€20m in revenue expected in 2021

LDC is assisting Retail in transforming its model

FOCUS ON STORE PICK-

INCONSUMPTION HABITS

NESTLE 2020 performance: the e-commerce champions

Growth in 2020 e-commerce revenue versus 2019 / TOP 5 (absolute)

MONDELEZ

Starting from January 2022: Supply to institutional food services must include:

products,

which 20% organically farmed products A REAL OPPORTUNITY TO GROW OUR SALES IN POULTRY CUTS UNDER THE “LABEL ROUGE” AND ORGANIC QUALITY MARKS IN OUR MARKETS!

“Label rouge” and local Organic and local A new brand dedicated to plant-based foods for out-of-home catering