PRESENTATION OF 2022-2023 ANNUAL RESULTS
An agri-food leader in France today, Europe tomorrow…
POULTRY
Leading French player, 40% of the French market
National brands (Loué, Le Gaulois, Maître Coq) embodying the Group's success
Leader in retail and catering
Strong growth in regional brands
Leader in Europe in specialty products: freerange chicken, organic, goose and duck
An upstream division that provides 40% of supplies
Construction of an Egg division with revenue of more than €300 million
INTERNATIONAL
Present in 4 countries, Poland, Hungary, Belgium and the United Kingdom
A strong footprint with 15 sites employing more than 4,000 people
CATERED FOOD
Second largest French player, 12 sites with 3,500 employees
A solid positioning in fresh and frozen goods
Present in 55% of the fresh catered food segment
Duplicate the LDC "born, raised and processed locally” model
An ambitious challenger looking for new targets and territories
Leader in ready-cooked meals with the Marie brand
Strong growth over five years, based mainly on the prepared meals segment
A deliberate acquisition strategy
Values driven by the Group, its family shareholders and responsible teams
Strong family roots and structuring investors
Breakdown of capital at 28 February 2023 (%)
Food sovereignty with respect for Women, Men and Nature
• Local, healthy and safe products,
• From increasingly equitable sectors,
• Made by responsible men and women,
• Acting within their regions. Performance Responsibility Respect Innovation Work done well
Familles (Lambert, Chancereul, Huttepain, Guillet)
Families (Lambert, Chancereul, Huttepain, Guillet)
Cooperative Agricole Fermiers de Loue
Cooperative Agricole Fermiers de Loue
Sofiprotéol
Sofiprotéol
Autodétention
Treasury
Actionnariat salarié
Employee share ownership
Flottant
Free float
A long-term growth profile
Poultry
An exceptional environment
BUSINESS
International
Three performance drivers
Catered Food
Revenue growth but a lag in price increases
FINANCE Targets exceeded
OUTLOOK
Forging ahead with execution of strategic priorities, resumption of growth in volumes
Poultry France
Poultry
2020 CGA General Agricultural Competition
FRANCE
Poultry: revenue driven by price increases
Poultry: proven ability to protect business and margins in an exceptional environment
2 waves of avian influenza
Impact at national and European level
A reduction in breeding implementations for the Group
Increase in raw material prices
An impact of €320m in 2022-2023 vs. 2021-2022*
* Excluding volume effect
Increase in operating expenses
An impact of €140m in 2022-2023 vs. 2021-2022
LDC's response
1. Mutual assistance plan between sites and between production zones
2. Streamlining of ranges
1. Price increases 2. Reduction of promotions
3. Optimisation of the balance of materials
4. Sale of frozen stocks
Industrially agile amid a shortage of materials
• Poultry supplies from other production zones
The Group's response from an industrial perspective
Streamlining of our product arrays
• Upstream teams and processing sites mobilised to respond effectively
20% less listed products to help industrial performance
Price increases obtained
Raw materials
From end-2020 to end-2022
Other breeder expenses
Start of 2023
Other processing plant expenses
The Group's response from a commercial perspective
Commercially agile amid a shortage of materials
The Group's response from a commercial perspective
Change in volume vs. Y-1
First breakout of influenza
Second breakout of influenza Gradual resumption of promo by species 80% of the recurrent shelf store products
Reduction of retail promotions 20% of PROMO activity February
Promotion of all cuts 3
Optimisation of the balance of materials
Use of frozen stock
Decrease in available stock volumes: -20%
Enhancement of the retail product mix
• Good resilience of labelled products despite the reduction of promotion
• Solid momentum in ranges that generate the biggest contributions
Source: Kantar |non-specialised channels / CAM 02 2023 / Ready
Growth in value driven by the main distribution channels
International
Three performance drivers
3 performance drivers: price increases, product mix and exports
All product families and distribution networks up sharply
Change in the client
Strong price increases across all product families and networks
• Reduced product availability
• Sharp price increases in chicken, duck/goose, canned products
• Slowdown in certified chicken sales due to inflation
Catered
Revenue growth
but a lag in price increases
Catered food: volumes held up well in the current environment
A fresh catered food market segment
Outperformance of frozen goods in the context of the health crisis
Breakdown of sales and change in value by network
Source: IRI March to February 2023 HM SM HD
Fresh catered food: still driven by prepared meals
Frozen catered food: good resilience in all segments
Change in retail sales of frozen catered foods by category (value in the period March 2022 to February 2023)
Catered food: price increases came too late for FY 2022
Targets exceeded
LDC Group: solid revenue growth
Change in revenue by business division
Growth in current operating income by division
Simplified income statement
Simplified balance sheet at 28 February 2023
Statement of cash flows
Cash flow, Investments
Change in share price and dividend
A dividend of €2.70 to be proposed at the General Meeting of 24 August 2023
Outlook
2023, a persistently demanding environment
Forging ahead with execution of strategic priorities, resumption of growth in volumes
2023: a persistently demanding environment
POULTRY MEAT COMPETING WELLRETURN OF AVIAN INFLUENZA IN THE SOUTH-WEST, AFFECTING DUCKSTILL HIGH OPERATING EXPENSES VIGILANCE ON THE LEVEL OF CONSUMPTION OF OUR PRODUCTS
BIOSURITY MEASURES AND CONTROL PLAN IN PLACE A VACCINE STRATEGY UNDER DISCUSSION
EASING OF GRAIN PRICES
A CHALLENGE FOR THE GROUP
Resume volume growth while maintaining our profitability
Avian influenza, still a topic in 2023
Avian influenza - Update on the situation
It is an endemic disease
Biosecurity is further strengthening in the sector
The monitoring plan is in place at all constituents of the sector
BUT ... A VACCINE STRATEGY UNDER DISCUSSION
Promotes:
• vaccination of the duck family
• the application of common commercial rules in Europe and with third countries
• geographical diversification of production areas
Price increases now governed by EGALIM law, and including retailers
Principle: non-negotiability of agricultural raw materials
Automatic revision clause
BREEDERS
Supplementary to contractualisation: Automatic revision of agricultural raw material prices
CUSTOMERS
Automatic revision of prices to take account of agricultural raw material share
Price = Agricultural raw materials → Automatic clause → Over-the-counter trading
The law makes it possible to pass on changes in the price of agricultural raw materials while allowing manufacturers to maintain negotiating capacity Operating expenses +
Demand for POULTRY products stabilising at a high level
Poultry consumption in France, 2022, by balance sheet:
Source: France Agrimer, Agreste and Kantar World Panel
• Return to a historical trend, with growth driven by out-ofhome catering…
Poultry meat still the most competitive
Source Kantar - CAM P2 2023 and CAM P2 2022
retailers: non-specialist channels + specialist channels + retail trade
Retail fresh foods: Chicken surpassed beef
Source Kantar - non-specialist channels - Volumes CAM P3 2023 vs. CAM P9 2021
Continued execution of the 2026-2027 strategic roadmap
STRATEGIC PRIORITIES
• Continued growth and innovation in processing
• Specialisation and competitiveness
• Continued recapture of imports
• Development of higher value-added egg ranges
STRATEGIC PRIORITIES
• Strengthen our positions in the countries in which we currently operate: Duplicate the LDC model: Born, bred, processed and consumed locally based on a decentralised, multi-network organisation with strong brands
• Strengthen sales through innovation and the development of processed products
• Carry out transformative acquisitions
Our CSR strategy: “Acting with our regions”
STRATEGIC PRIORITIES
• Consolidation of current product categories by: Developing our brands and expansion of marketing networks
• Taking positions in new product categories: structural acquisitions (pastry, salads, etc.)
• Strengthen sales through innovation and the development of processed products
Catered Food
LDC Group's egg business:
A high-potential activity for a group of more than €300m approx. 2 billion eggs out of 15 billion produced in France
No. 1 in free range shell eggs in France to meet demanding and detailed specifications
Specialist in egg solutions for catering and food industry professionals
225 employees
Acquisition of Galina Maine and SAVIC, two transactions as part of our project
GALINA MAINE TO SECURE VOLUMES
Integration May 2023
34 people, revenue of €10m of which 50% consolidated, 400,000 slow-growth chicks
SAVIC-FRESLON
SPECIALISATION OF TOOLS
Integration May 2023 / 80% owned by LDC and 20% by CIAB
Revenue of €30m
Strategic geographical location
Optimised logistics
Increase in production volumes to come
110 employees
55,000 Challans label chickens per week
15,000 organic chickens per week & festive poultry in December
A presence in butchery, delicatessens, in traditional aisles in local retail and at cooked meat counters and organic networks
Speciality: Challans free range black chicken
La Chaize-le-Vicomte
Continued recapture of imports, specialisation of tools
TOTAL POULTRY CONSUMPTION
INVESTMENT PLAN FOR THE IMPLEMENTATION OF A NEW INDUSTRIAL LAYOUT
1. Modernisation to increase competitiveness
2. Increase capacity
3. Specialisation
4. Reduced exposure to avian influenza risk
GROWING DEMAND FOR FRENCH-ORIGIN
Increase capacity in Brittany within the SBV division in Sérent and Boscher
Specialisation of sites in Mayenne and Normandy (Ramon and SNV)
Spread the Group's turkey slaughter activity over 5 Group slaughterhouses vs. 6 currently Objective
Double our volumes aimed at the fast-food market by 2028
NIAGARA PROJECT
Bolster investments to widen the gap
Fast food: option of French-origin ... and LDC!
"The chicken used for nuggets is 100% French-origin and compliant with LDC’s ‘Nature d’éleveurs’ sustainability charter”
"100% of burgers sold use French chicken"
“Chicken Mc Nuggets: 100% French-origin chicken fillets”
"100% French-origin breaded chicken cutlets"
Strong commitment from the brands
Croustipoulet
Innovation in Poultry / International / Catered Food
2023-2024 targets: exceed €6bn in revenue
A CURRENT OPERATING MARGIN OF AROUND 5%
CSR
Acting with our regions
CSR: a strengthened animal welfare strategy
ANIMAL WELFARE
The conditions for proper treatment of animals on farms
OUR COMMITMENTS
➔Promote the comfort and health of poultry (hen roost, natural light, reduction of density, substrates for pecking, etc.)
➔Independent controls: BEA animal welfare label, quality, environment
➔Compensation policies that reward quality criteria
OUR TARGETS
Sustainable farming (Nature d’éleveurs LR sustainable policy, organic, AOP controlled origin, FR) 2021
68 % of breeders engaged
74 % of breeders engaged 2022
100 % of breeders engaged
ANIMAL PROTECTION
The conditions for proper treatment of animals, from collection through to processing sites
OUR COMMITMENTS
➔Development of stunning in a controlled atmosphere
➔Video surveillance cameras: 50% of our sites already equipped, Objective: 100% by end-2025.
➔Training in animal handling
➔Independent external controls
OUR TARGETS November 2025
➔Online posting of a REPORT on Animal welfare and protection indicators published online
➔Reach BBFAW Tier 3
A local and controlled ethical foundation for all our production sites
Transparency of the practices of our sectors
CSR: launch of the climate & biodiversity mitigation and adaptation strategy
Acting to achieve 6 environmental objectives (taxonomy)
Results from 2023
Presentation of:
• A comprehensive carbon review for the entire scope of 2022, and changes since 2019
• Decarbonisation & Climate Change Adaptation action plan
• Certification selected under study (SBTi Certification or Net Zero Initiative)
2 measures already taken
1. Poultry food inputs
• Use of local amino acids: LDC/METEX partnership to reduce dependence on imported soybean
2. Energy
Changes in:
• the quantity consumed
• the production method
• the yield
Photovoltaic
CSR: governance, a revitalised board
A stable and experienced team
