H1 2019 Corporate Presentation Agenda Company Overview Market - PDF document

H1 2019 Corporate Presentation

Agenda Company Overview Market Competitive Landscape Strategy & Outlook Financials Agenda 2

Valsoia at a glance COMPANY Valsoia is the pioneer for non-dairy, plant-based products in the Italian market. Valsoia’s mission is to provide healthy, functional, nutritionally-balanced products MISSION that are tasty and enjoyable , drawing on traditional Italian expertise and culinary culture. Valsoia’s from-breakfast-to-dinner range. * BRANDS * FIGURES €82.3m +12 k PoS 9 product R&D for Over 7 million turnover in Worldwide Product categories families FY 2018 innovation Company Overview 3 * Valsoia is the distributor for Weetabix products in Italy and the licensee for BlueNyx

History Founded in 1990 by neurologist Lorenzo Sassoli and listed on the Italian stock market since 2006. Today Valsoia is expanding in the domestic and international markets, through product innovation and acquisitions Serravalle Sesia Santa Rosa 2014 production plant Dietetic 1990 2006 acquisition acquisition acquisition IPO – Italian Starting Started Stock Exchange Out 2011 2017 2001 Internationalization process Company Overview 4

Governance Board of Directors Top Management CEO CFO Chairman Andrea Nicola Lorenzo Panzani Mastacchi Sassoli Lorenzo Sassoli Susanna Zucchelli Chairman Independent Director Shareholder Structure as at May 2018 Furio Burnelli Francesca Postacchini Deputy Chairman Independent Director Market 26,15% Ruggero Ariotti Camilla Chiusoli Deputy Chairman Independent Director Cesare Doria de Zuliani Gregorio Sassoli Honorary Chairman Director Furio Burnelli 5,29% Andrea Panzani Chief Executive Officer Finsalute srl Ruggero 62,78% Ariotti 5,79% Company Overview 5

Business Operation Model Production Process: • Own production • Partially outsourced • Fully outsourced Serravalle Sesia Production Plant Valsoia provides third parties with Research & Preferred suppliers product Development specifications Valsoia provides Outsourced third parties with: Production Production Preferred suppliers - semi-finished Planning products - product specs Headquarters Bologna Outsourced Quality Production Control Ambient Quality Outsourced Production Chilled Control Distribution Frozen Company Overview 6

Products Revenues Breakdown H1 2019 Healthy products  The healthy products segment corresponds to Valsoia Bontà e Salute, Vitasoya and Naturattiva.  It accounts for about 59% of sales Food  Our food segment products include Others Santa Rosa, Diete.Tic, and Weetabix Export distribution  Food products account for 28% of sales Company Overview 7

Healthy products Valsoia Bontà & Salute offers a wide variety of tasty, natural and healthy products. Valsoia’s from-breakfast-to-dinner offer is ideal for every age group Non-dairy Meat Non-dairy Non-dairy Non-dairy Non-dairy cheese Alternatives drink yogurt Ice cream dessert Vegan meals Non-dairy Vegan Others Vegan snacks dressing And pizza spread High quality soyadrink Other Brands Organic products Company Overview 8

Food Segment & Other Santa Rosa, purchased in Diete.Tic, purchased in Valsoia distributes Valsoia is the brand 2011, is a historic brand in 2017, is a liquid Weetabix in Italy. A licensee for BlueNyx. It is a the Italian food tradition, sweetener, sugar range of whole grains dietary supplement with an offers high quality substitute, with a unique for a wellness exclusive MGTS 3 ACTION and patented process. breakfast. Produced by formula that promotes the standard jams, choosing only the highest quality Completely calorie-free, the Weetabix Food natural and regenerating fruit through strict it does not alter the taste Company. They are path of one's sleep. purchasing specifications. of food or drinks and is unique, loved and Thanks to the presence of highly soluble. appreciated all over vitamins and mineral salts, it the world. contributes positively to the energy metabolism, to reduce the sense of tiredness and to maintain the functionality of the immune system. Company Overview 9

Agenda Company Overview Market Competitive Landscape Strategy & Outlook Financials Agenda 10

Non-dairy and plant-based alternatives market trend and number of families Families purchasing Valsoia products 4.500 3.530 2.720 Number of families 2006-2018 14.2 m 1.890 Flexitarian Vegetarian Vegan 2004-2006 2009-2011 2012-2014 2015-2018 6.9 m 4 m 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total 4.0 4.8 5.0 5.4 5.8 6.3 6.5 6.9 8.8 10.6 11.6 12.4 14.2 Vegetable purchases % Market penetration 16% 19% 20% 22% 23% 25% 26% 28% 35% 43% 47% 50% 57% on total families Market 11

The polarization of preferences: Favorable to the target of plant-based product markets +923K FAMILIES - 357K FAMILIES - 260K FAMILIES - 930K FAMILIES +690K FAMILIES Purchase habits are changing, customers preferences are polarizing on the higher and lower range of price. It means that Valsoia’s target segment is growing through the years. “Golden consumers” are the most likely to spend on healthy eating habits. Market 12

Italy healthy food consumer trends (Sell out value) Var. % Var. % `January 2018 – April 2014 – April 2018 December 2018 Lactose Free +9.3% +6.0% Gluten Free +15.5% +4.5% Animal Protein Substitutes +14.1% -4.7% Dietary +2.8% +0.6% Supplements +4.2% Market 13 Source: Nielsen

Italian plant-based alternatives shelves: Overcrowded SKU 2013 – 2018 (MD) 1128 1120 863 627 453 385 2013 2014 2015 2016 2017 2018 The market is becoming increasingly competitive with a growing number of SKU’s on shelves leading to a risk of overcrowding. Starting in 2018 a small dip can be identified with the beginnings of a rationalization process Strategy & Outlook 14 Source: Nielsen

Agenda Company Overview Market Competitive Landscape Strategy & Outlook Financials Agenda 15

Competitive Landscape Plant-based products Market share in Italy As of February 2019 100% Communi- Market Image Health Products cation 23% 12% 6% 6% 5% Market Valsoia Alpro Sojasun Granarolo Kioene Valsoia continues to hold the largest market share in Italy. Competitive Landscape 16 Source: Nielsen

Market Shares Soy Milk Vegan Ice Cream (No amando) + 0.3 pp -1.1 pp 2018 2018 2019 2019 Vegan Desserts Vegan Frozen Meals + 4.3 pp + 3.5 pp 2018 2019 2018 2019 Vegan Cheese Vegan Cream (Condiment) + 7.2 pp + 2.9 pp 2018 2018 2019 2019 Vegan Yogurt Meat Alternative Coldcuts + 7.4 pp + 1.6 pp 2018 2018 2019 2019 Competitive Landscape 17 Remaining Market share Valsoia Market share

Reputation Institute Analysis (1/3) The Reputation Institute analysis is based on: • An annual study since 2006 • A sample of 30,000 subjects in Italy • The perimeter studied regards 388 companies operating in Italy Competitive Landscape 18

Reputation Institute Analysis (2/3) Competitive Landscape 19

Reputation Institute Analysis (3/3) Within the FMCG – Food Category Valsoia ranks 17 th Competitive Landscape 20

Vegetable Alternatives THE WORLD IS BECOMING VEGETARIAN AND SUSTAINABLE Valsoia is at the center of some of the most heavily discussed issues of the 21 st century. Entro quarant’anni la popolazione mondiale aumenterà di due miliardi e le risorse idriche scarseggeranno. Secondo un team di studiosi svedesi, per evitare carestie dovremo mangiare frutta e verdura anziché bistecche Competitive Landscape 21

Competitive Landscape Strategy & Outlook Company Overview Financials Market Agenda Agenda 22

Strategy Valsoia top-level brand image Head Leadership in perceived quality (80% of products have been successfully tested, and are Mouth successful compared to competitors) Highly focused on innovation through R&D: 75% of new products are still on the shelves Innovation after 3 years Execution A strengthened and highly qualified sales force, improve collaboration with retailers International In progress, largely successful Expansion M&A Targeting companies in Italy and abroad Strategy & Outlook 23

Focus on Advertising Head  Valsoia is market leader with consolidated strong brand image and brand awareness due to high investments in advertising and consumer marketing  2018 has seen several new marketing campaigns focusing on contests promoting the consumption of healthy products Key Messages: Key Messages: • Significant investments in advertising continues in 2019 • Through the “Lezioni di • 100% vegetable, tasty, natural, non-dairy Etichetta” campaign Valsoia • Enlarging the coverage from teaches the general public Italy to international countries • Respect for animals and the how to identify products with (USA and Germany) environment greater ease • Digital campaigns also play a • A healthy diet for the whole large and increasing role family • A brand you can trust Valsoia leader, with a share of voice of over 45% Strategy & Outlook 24