Emmi in the dessert paradise Emmi Investor Day Davide Brebbia

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Emmi in the dessert paradise

Emmi Investor DayDavide BrebbiaManaging Director A-27

Berne, 3 November 2015

Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27 page 2

A-27 in brief

The market

The business

Going forward

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Dessert is one of the four Global Categories

The role of the dessert business within Emmi


Corporate Development

CEOCEO

Switzerland Europe(Austria, BeNeLux, Germany,

Italy, UK,)

Americas(Chile, Canada, France, Spain,

Tunisia, USA)

Global Trade Model

DrinksSpeciality cheeseSpoonableDesserts

Finance / Legal

Corporate Communications & IR

HRInternational Operations

Quality / Security / Environment

Global Categories & Marketing (incl. R&D coordination)

Global Initiatives

page 4

History

A-27 was founded in 1978 in Rancio Valcuvia in the province of Varese, northern Italy, as an ice-cream producer under the brand “Bontà Divina”.

In 1991 it specialised in the production and sale of traditional Italian and international chilled pâtisserie desserts.

In 2011 the company became even more international when it entered the Emmi Group.

In 2014 in addition to the production site in Rancio Valcuvia, the 2nd site in Gattico in the province of Novara was opened.

TODAY the company has a workforce of about 290 people; turnover has reached more than 80 million euros, and the desserts are sold in 24 countries.

Almost 30 years of experience in Italian specialty desserts

Emmi Investor Day 2015, Berne: Presentation of Davide Brebbia, Managing Director A-27

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page 5

Facts & figures Rachelli

The latest member in Emmi’s dessert family

§ Aquired in 2013§ Sales: approx. 30 million euros§ 120 employees§ Products: desserts and ice cream§ Solid growth history§ Strong competence in health-oriented food

(the entire ice cream range is organic orbiodynamic)

§ Leading position in Demeter organic ice creamin Germany


page 6

Production sites

Rancio Valcuvia:- Niche products- Small volumes

Pero (Rachelli):- Specialty desserts- Organic ice cream

Almost 30 years of experience in Italian specialty desserts

Gattico:- Blockbusters

(high volumes) like Tiramisù


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page 7

Advantages of the new Gattico site

High-speed tiramisu and profiterole lines, double volume capacity

Production- Increased efficiency- Reduced complexity due to optimised set-up- Investment shift from replacement to

rationalisation and expansion

Quality- Perfect hygienical conditions- Capacity for innovation and new production lines

Sustainability- Optimised worker safety- Less waste (e.g. waste water treatment)


page 8

Benefit of the acquisition

Mutual opportunities in various areas

For Emmi:§ Expansion of the product portfolio§ Strong position in a growing segment with

above-average margins§ Saving potential e.g. in purchase pooling

For A-27:§ Financial resources§ Know-how in operational excellence§ Access to marketing resources§ Access to new markets


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A-27 in brief

The market

The business

Going forward

The different facets of the dessert category


1. Yoghurt

2. Patisserie

3. Mousse & cream

4. Flan & puddings

5. Specialties

European ranking of dessert sub-categories

Source: Global Base Study, LINK Institute

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We want to know the consumer


Dessert is an integral part of a meal.

I love to sharehome-made dessert with others.

I can’t live withoutdessert.

I prefer home-made and trusteddesserts.

I reward myselfwith a dessert.

Dessert Habitualist

Dessert Host

Dessert Enthusiast

Dessert Traditionalist

Dessert Rationalist

Five relevant dessert typologies

Source: Global Base Study, LINK Institute

«Indulgence & Premium» is one of the global food trends§ Global Food Trends

page 12

The global food trends

Source: Mintel


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«Indulgence and Premium» is a global food trend


Source: Mintel

A closer look


A-27 in brief

The market

The business

Going forward

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VISIONWe are the leading company for premium fresh desserts in Europe and satisfy our customers with excellent and innovative products based on our consumer and

production expertise and our passion for quality.

MISSION STATEMENTWe delight our consumers with better

tasting and innovative desserts. We satisfy our customers with successful and new solutions based on our thirty years of

experience, our focus on innovation and our enthusiasm.

Ambition

Positioning in the premium segment

page 16

Development of the product portfolio

1991 Traditional chilleddesserts are launched underthe Bontá Divina brand

For a relaxing after dinner treat …

2000 Development of the " Selection " range

For the more refined palates!

2015 Expansion of the range (launch of eclairs and lemonprofiteroles)

Ideal as a snack or as a delicious dessert!

2008 Introduction of the " Delizia " range

Innovative and seductive desserts withswirls of enchanting flavours …


Positioning in the premium segment with more differentiation

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page 17

A-27 production growth in tons

900010500

1200013000

1450015400

16300

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2008 2009 2010 2011 2012 2013 2014

Tons

Steady growth over a six-year period


page 18

Sales by country

44%

19%

16% 7%5%

9% FranceUKItalyGermanyBelgiumOthers

The top 3 markets make up for approx. 80 % of total sales

(Total number of markets: 24, sales 2014)


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page 19

Sales breakdown by products

51%

17%

11%8% 3%

10%

TiramisùProfiterolesPanna CottaDelizia RangeLemon DessertOther

Tiramisù is THE big seller


(percentage of total sales)

page 20

Innovation pipeline

Never-ending possibilities

Cheese cakes?

New channels?

Crèmes? Flans?

Bisquit based?Bakery style?

Creative layers?

Mascapone dreams?


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A-27 in brief

The market

The business

Going forward

Market outlook

Continuing high potential of dessert category


0

200

400

600

800

1'000

1'200

1'400

1'600

ITA ESP F GER UK

Market volumemillion euros

20172013

By 2017, prices are estimated to grow in the low to high single-digit range, depending on the individual market .

§ Dessert category will grow further§ Average consumer price per kg is

likely to follow a positive trend

Source: Canadean

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page 23

Mid-term growth potential of A-27

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20

40

60

80

100

120

140

160

Actual 2014 2015 2016 2017 2018 2019 2020

Indexed sales

Expected growth above market average



Strategic objective:gain market share& generate momentum

Increase distribution on current desserts in retail in Europe

Range extension on desserts in retail in Europe

Gain distribution on Éclair sweet snack in retail in Europe

Range extension on sweet snacks in retail in Europe

Distribution of desserts in retail in Americas

Distribution of desserts in food service in Europe

Strategy

Time line

Perspectives on new market segments

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Summary

A-27 has a 37 years history of successful developments and innovations, and has still a lot of growth potential

Synergies with Emmi represent an additional opportunity for A-27

Next developments will be done always keeping great focus on quality and innovation


Questions & answers

Documents

Emmi in the dessert paradise Emmi Investor Day Davide Brebbia