ORIOR 2025 Strategy
Investor Event, 9 November 2020
1 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Agenda
Review / evaluation
- Review ORIOR 2020 Strategy
- Statement on the Guidance 2020
ORIOR 2025 Strategy
- Our vision - our mission
- Overarching goals
- Strategic pillars
- Key strategic initiatives
- M&A priorities
- Governance
- Our ambition
The ORIOR world
2 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Review ORIOR 2020 Strategy
The 2020 goals in overview
ORIOR in 2020
1 | ORIOR remains a stable and financially strong food group. | | |
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2 | ORIOR has achieved solid growth in Switzerland including bolt-on | ||
acquisitions. | |||
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3 | ORIOR has steadily improved its operating results, supported by high | ||
cost efficiency. | |||
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4 | ORIOR remains the market leader in existing and new product niches. | ||
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5 | ORIOR is the most innovative food group in Switzerland, and owns | ||
strong and unique brands. | |||
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6 | ORIOR is European. | ||
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7 | ORIOR offers shareholders an attractive dividend yield and has | ||
steadily increased its dividend payout. |
Successful ORIOR 2020 Strategy; substantial corona impact as of March 2020
3 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Reflexion ORIOR Strategie 2020
Organisational development -> Resilience thanks to diversified business model
- Our competence centre structure makes speed and agility possible thanks to individuality across a diversified range of product worlds, strong regional roots and enduring market closeness.
- Executive Committee is supported by the Extended Executive Committee; new leadership teams and the Champion Model strengthen the ORIOR network, driving value and creating new sales potential.
- Strengthened International (Culinor, Gesa, Casualfood), fresh convenience (Culinor), organic in general and organic beverages (Biotta), food service / direct-to-consumer sales (Casualfood) and innovative power (Culinor, Biotta, Casualfood); established new sales channels (health food stores, airports, railway stations).
- Efficiency gains and lower costs thanks to production site development and supply chain excellence.
Convenience | Refinement | International | |||||||
Category pioneers | Strong traditional brands | ||||||||
Fredag Le Patron Pastinella | Biotta | Rapelli Albert Spiess Möfag | Culinor Casualfood Gesa | Spiess | |||||
Europe | |||||||||
4 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Reflexion ORIOR Strategie 2020
Lessons Learned
ORIOR 2025 Strategy represents an evolution
- The successful ORIOR 2020 Strategy serves as the basis and starting point for the new strategy period
- Key elements of the 2020 strategy have been refined and perfected.
- Strategy development and execution broadly supported:
- Extended Executive Committee in the lead.
- Formation of specialist teams for specific topics ->know-how, quality, commitment.
- ORIOR Top50 are the ambassadors of the ORIOR Strategy 2025 -> involved in the development of sub-elements of the new strategy.
Anchoring and common understanding as a success factor
- Strategy and strategy execution placed on a broader base; rolling action plans to integrate core elements more deeply into the daily business and into existing management tools.
- Encouraging and demanding common understanding even more than before. Intensification through constant repetition, training/interaction and through involvement.
- Reduction of strategy to simple and understandable terms/graphics/messages that can be cascaded across all levels of the Group.
- Consistency of wording, thereby strengthening internal identification with the strategy and external understanding of the strategy.
5 ORIOR 2025 Strategy | Investor Event, 9 November 2020
The New Normal -> Our path towards the new growth momentum
PHASE 4
New horizons
- Identify and capture new opportunities
- Rapid adaptation and adjustment
- Innovation ‐> new opportunities
- Holistic sustainability
OUR GOAL (PHASE 5)
Establish growth momentum (progress)
- Establish new structures (resilience)
- Innovation becomes more tangible & impactful
Growth | - New networks emerge | ||
PHASE 1 Acute crisis | PHASE 3 | |||||||
Creating a new base | ||||||||
Crisis management | ||||||||
- Financial and structural adjustments | ||||||||
- Employee safety | - Profound changes | |||||||
Previous | ||||||||
- Ensuring supply capabilities | Setting the switch | - Strengthening leadership principles | ||||||
momentum | ||||||||
PHASE 2 | (no progress) | |||||||
Safeguard operating performance | ||||||||
- EBITDA ‐> lower costs | CRISIS | CRITICAL PHASE | ||||||
- Liquidity ‐> cash management
New leadership mindset
- Strong and clear leadership ‒> commitment, implementation
- Sense of urgency ‐> speed, flexibility, agility
- Behavioral change ‐> open for new pathways
6 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Statement on the guidance 2020
Extract from the presentation of the half-year results 2020, 19 August 19
7 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Agenda
Review / evaluation
- Review ORIOR 2020 Strategy
- Statement on the Guidance 2020
ORIOR 2025 Strategy
- Our vision - our mission
- Overarching goals
- Strategic pillars
- Key strategic initiatives
- M&A priorities
- Governance
- Our ambition
The ORIOR world
8 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Our vision:
Our mission:
We are striving for uniqueness and offering best quality in order to surprise our consumers time and again with enjoyable
food moments.
ORIOR Strategie 2025 | Investorenpräsentation, 9. November 2020
ORIOR 2025 Strategy
Overarching goals
Goal 1
Goal 2
Goal 3
Goal 4
Goal 5
Goal 6
Goal 7
ORIOR generates sustainable and profitable growth, sustained by its unique business model and broad footprint.
ORIOR embraces management clarity and responsibility, entrepreneurship and strong common values.
ORIOR celebrates its innovative skills in its brand, concept and product worlds, fascinating its consumers time and again.
ORIOR is an attractive, financially sound and resilient Food & Beverage Group.
ORIOR steadily increases the absolute dividend.
ORIOR invests in sustainable organisational development and is establishing the ORIOR Campus as its central platform for employee training and development.
ORIOR takes responsibility and promotes sustainability steadfastly, proactively and purposefully.
10 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Strategic pillars
11 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals
ORIOR generates sustainable and profitable growth, sustained
12 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals
ORIOR generates sustainable and profitable growth, sustained Goal 1 by its unique business model and broad footprint.
ORIOR celebrates its innovative skills in its brand, concept Goal 3 and product worlds, fascinating consumers as a result.
13 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals
ORIOR generates sustainable and profitable growth, sustained Goal 1 by its unique business model and broad footprint.
14 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals
Goal 1
Goal 2
ORIOR generates sustainable and profitable growth, sustained by its unique business model and broad footprint.
ORIOR embraces management clarity and responsibility, entrepreneurship and strong common values.
Goal 6
Goal 7
ORIOR invests in sustainable organisational development and is establishing the ORIOR Campus as its central platform for employee training and development.
ORIOR takes responsibility and promotes sustainability steadfastly, proactively and purposefully.
15 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals
Goal 1
Goal 2
ORIOR generates sustainable and profitable growth, sustained by its unique business model and broad footprint.
ORIOR embraces management clarity and responsibility, entrepreneurship and strong common values.
ORIOR invests in sustainable organisational development and is establishing the ORIOR Campus as its central platform for
Goal 6 employee training and development.
16 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Strategic pillar
"House of innovation"
By embedding innovation deeply into our corporate culture, we will be able to generate sustainable value on our products, concepts, services and processes alongside the entire value chain.
We aim at creating differentiating consumer and customer experiences as well as empowering our people to stay a step ahead in our business.
ORIOR 2025 Strategy
Strategic pillar "House of Innovation"
Areas of focus
- Innovation at ORIOR is built on our core competences focusing on developing existing and new niches even beyond our products.
- Innovation at ORIOR is breathtaking simple but specific and focused.
- Innovation at ORIOR is made for today's business and tomorrow's consumer's needs.
- Innovation at ORIOR is based on strong category management expertise and validated by adequate market research, executed by a clear innovation development process.
Goal 1 | We will be perceived as absolute leaders |
in innovation along our categories by our | |
customers and therefore continuously | |
confirm our partnerships. | |
Goal 2 | Our innovations will generate accretive |
contribution margins to our business. | |
Goal 3 | Our innovations will not be risk proof but |
with the "first time right" principle, we aim | |
at successful market launches of | |
at least 50% in the first year. | |
Goal 4 | Our innovations should further |
strengthen our pride and are driven | |
by and for all our stakeholders. |
18 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Strategic pillar
"Brand experiences!"
We view ourselves as a creative workshop focused on our brands, products and services and aiming to win over consumers with our stories and our passion for what we do.
We are constantly developing new culinary delights for our heritage brands as well as the brands of our customers. In doing so, we always communicate empathetically paired with closeness to the consumer, primarily using our innovative product and packaging concepts. This combination fosters relevance among consumers and our business partners, enhances our independence and ensures the sustainable growth of our business.
ORIOR 2025 Strategy
"Brand Experiences!"
Areas of focus
- We are broadening and refining our marketing skills.
- We constantly focus on the consumers and their needs.
- The primary objective is to distinctly position our company and our brands and to differentiate ourselves from the competition.
- We create unique brand experiences !
- As a motivating and inspiring employer, we exemplify what we stand for as a company every day. In doing so, our employees serve as proud company and brand ambassadors in the regions where they work and in their dealings with customers.
Goal 1 | We will tell a distinct story for every brand |
that people on the inside and outside can | |
experience. | |
Goal 2 | In addition to new products, we will create |
innovative and sustainable product and | |
packaging concepts. | |
Goal 3 | We aim to steadily increase the share of |
our own brands in our portfolio. | |
Goal 4 | Every unit will have a motivating and |
inspiring employer brand, which makes | |
us unique. |
20 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Strategic pillar
"Strong Foundation and Operational Agility"
We are working hand in hand to further strengthen the financial and operational foundations of the company, each employee in their particular area and across the entire value chain.
Our decentralised business model keeps us close to the market and reinforces the entire Group's resilience. At the same time, the company's broad portfolio of activities enables us to capture value creation synergies between the competence centers, share know-how and continuously harmonise and improve process workflows.
Our constant efforts and increasing agility as well as digitisation help us to make progress towards Operational Excellence every day.
ORIOR 2025 Strategy
Strategic pillar "Strong Foundation and Operational Agility"
Areas of focus
- The operational and financial foundation of our company will be strengthened through the continuous process optimisation and efficiency gains and by making our fix cost base more flexible.
- We aim at creating value in all operational and functional areas of the company, supported by the Group-wide ORIOR Champion Model (internal know-how networks).
- We are striving for simplification and improvement at all process and system levels. Active portfolio management is essential to these efforts.
- We are selectively investing in ongoing digitisation to increase efficiency and capture new opportunities throughout the value chain.
Goal 1 | We are implementing a comprehensive, |
Group-wide roadmap supply chain | |
excellence 2025 containing improvement | |
measures throughout the value chain. | |
Goal 2 | We are increasing our productivity and |
efficiency, and thus constantly improving | |
our operational cost base. | |
Goal 3 | We are gradually increasing the level of |
digitsation and automation in the | |
company. |
22 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Strategic pillar
"The ORIOR
Responsibility"
Sustainable business practices form the basis for Excellence in Food. Every day
we strive to improve our performance across the entire value chain in keeping with our clearly formulated sustainability strategy and the objectives contained therein.
ORIOR 2025 Strategy
Strategic pillar "The ORIOR Responsibility"
Areas of focus
- Product responsibility: Animal welfare, Sustainable raw materials, Safe and healthy food
-
Environmental responsibility: Food waste and packaging, Climate and energy,
Water - Social responsibility: Employee development, Occupational safety and health, Economic performance
Goal Ongoing efforts and progress measuring in all sustainability areas; achievement of the goals set
in ORIOR's Sustainability Strategy.
24 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Strategic pillar
"We are ORIOR"
"We are ORIOR" is based on common corporate values and empowerment of employees at all levels in regard to self- responsibility, open and direct communication, and ethical and respectful business conduct. We support and promote the cultural diversity of the decentralised competence centres and are firmly committed to occupational health and safety. At the same time, we provide our dedicated employees with opportunities for growth and development in their day-to-day work. We want to celebrate our craftmanship with passion and pride.
ORIOR 2025 Strategy
Strategic pillar "We are ORIOR"
Areas of focus
- We celebrate, expect and encourage an entrepreneurial mindset at every level of the organisation.
- We are establishing our ORIOR Campus as a central platform for employee training and development, with the objective of expanding the skill sets of our employees and strengthening our organisation.
- We see a direct correlation between employee health and safety and workforce motivation and performance.
Goal 1 | We will invest in sustainable organisational |
development. | |
Goal 2 | We will continuously improve employee |
safety and health by introducing a | |
comprehensive and Group-wide | |
occupational safety and health (OSH) | |
program. | |
Goal 3 | We will establish our ORIOR Campus as a |
central platform for employee training and | |
development. | |
Goal 4 | We will introduce Group-wide talent |
management program. | |
Goal 5 | We will promote vocational training and |
internship programmes. |
26 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Key strategic initiative
Key strategic initiatives
ORIOR New Normal
ORIOR Champion Model
ORIOR Bridge-building
27 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Key strategic initiative
The New Normal -> Our path towards the new growth momentum
PHASE 4
New horizons
- Identify and capture new opportunities
- Rapid adaptation & adjustment
- Innovation ‐> new opportunities
- Holistic sustainability
OUR GOAL (PHASE 5)
Establish growth momentum (progress)
- Establish new structures (resilience)
- Innovation becomes more tangible & impactful
Growth | - New networks emerge | ||
PHASE 1 Acute crisis | PHASE 3 | |||||||
Creating a new base | ||||||||
Crisis management | ||||||||
- Financial and structural adjustments | ||||||||
- Employee safety | - Profound changes | |||||||
Previous | ||||||||
- Ensuring supply capabilities | Setting the switch | - Strengthening leadership principles | ||||||
momentum | ||||||||
PHASE 2 | (no progress) | |||||||
Safeguard operating performance | ||||||||
- EBITDA ‐> lower costs | CRISIS | CRITICAL PHASE | ||||||
- Liquidity ‐> cash management
New leadership mindset
- Strong and clear leadership ‒> commitment, implementation
- Sense of urgency ‐> speed, flexibility, agility
- Behavioral change ‐> open for new pathways
28 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Key strategic initiative
ORIOR Champion Model
Fundamental to ORIOR's decentralised organisational structure
- Encourage responsibility, identification and motivation.
- Substantial value creation for the business units and the ORIOR Group.
-
Strengthen competence centres through intra- disciplinary, functional collaboration and
the sharing/exchange of know-how. Focus is on potential cost-efficiency gains and knowledge transfer. - Ongoing development of key employees: ORIOR Campus, "on the job"
29 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Key strategic initiative
ORIOR Bridge-building
Generate incremental revenues through increased collaboration
Goals
- Building bridges will generate new growth.
Ideas
- Proactive and situational cooperation on value-creating projects involving multiple segments and/or business units to:
- capture new sales potential: e.g. by expanding existing successful brands, products, concepts or ideas in new channels or markets.
- develop new sales potential: e.g. through know-how and knowledge transfer within the Group.
30 ORIOR 2025 Strategy | Investor Event, 9 November 2020
Key strategic initiative
ORIOR Bridge-building
Examples of successful Bridge-building in 2019/2020
31 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
M&A priorities
M&A strategy basics
-
In accordance with the primary goals of the ORIOR 2025 Strategy.
• Particularly with regard to the long-term strengthening of balance sheet quality and dividend policy. - Expand, strengthen or round off existing core competencies.
- 3 fits: Strategic fit, cultural fit, financial fit
- Adding value to existing business.
Focus
Bolt-on | Focus | Bolt-on Foreign | Akquisition Foreign | |||
Switzerland | markets | markets | ||||
− | Succession plans of | − | Succession plans of | − | Standalone foreign-based | |
family businesses. | family businesses. | competence centre. | ||||
− | Small and mid-sized | − | Small and mid-sized | − | Succession plans of | |
"rough diamonds". | "rough diamonds". | family businesses. | ||||
− | Strong regional players | − | Strong regional players | − | Strong regional/national | |
with potential. | with potential. | players with potential. | ||||
− | Focus on strengthening | − | Focus on strengthening | − Focus on new and existing | ||
existing competencies. | existing competencies. | ORIOR categories. |
Alternative
business models
- Gastronomy/Catering.
- Take Away/Snacking.
- Home Delivery.
- New Service Models.
- "Out-of-the-box".
- Focus on strengthening innovative power / new markets.
Partnerships: concurrently, proactively pursued. Can also serve as a stepping-stone towards an acquisition.
32 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Governance
Governance is an increasingly important issue; also in the context of ESG
Environmental
Our impact on the planet (positive and negative)
Pertains in particular to the environmental and product responsibility aspects of our sustainability strategy:
Social | Governance |
People- and society- | Leadership principles, |
related issues | structure and organisation |
(internal and external) | |
_ Articles of Association | |
_ Organisational Regulations | |
Pertains in particular to | _ Corp. Gov. Report |
social responsibility and | _ Shareholding Guidelines |
product responsibility | _ Company Principles |
aspects of our | |
_ Company Values | |
sustainability | |
strategy: | _ Code of Conduct |
_ Comp. Report | |
_ Guidelines | |
_ … |
ORIOR 2025 Strategy
Governance
Strengthening leadership principles (governance)
Many governance-related issues are integral parts of the strategic pillar "We are ORIOR".
- Review/sharpening of our guiding principles (gradual implementation)
- People Empowering Programme (e.g. establishment of Group-wide talent management program)
- Code of Conduct (e.g. addressing social requests such as human rights, equality of opportunity)
- Organisational development
- Investment in sustainable employee development (-> goal of "We are ORIOR")
- Gradual further refinement of the remuneration and shareholding policy (2021)
- Shareholding guidelines: includes minimum shareholding requirements for BoD and top management
- Introduction of LTI plan for top management (ESG)
- Revision and publication of an employee stock ownership plan "ORIOR 2025 Strategy"
- Sharpening performance criteria for top management and implementation of ESG goals
- Information policy
- Further transparency in the Corporate Governance Report and Compensation Report
- ESG at ORIOR: overview and presentation (Q1 2021, along with Annual Report 2020)
34 ORIOR 2025 Strategy | Investor Event, 9 November 2020
ORIOR 2025 Strategy
Overarching goals and our ambition
Goal 1 | ORIOR generates sustainable and profitable growth, sustained |
by its unique business model and broad footprint. | |
Goal 2 | ORIOR embraces management clarity and responsibility, |
entrepreneurship and strong common values. | |
ORIOR celebrates its innovative skills in its brand, concept | |
Goal 3 | and product worlds, fascinating consumers time and again. |
Goal 4 | ORIOR is an attractive, financially sound and resilient Food & |
Beverage Group. | |
Goal 5 | ORIOR steadily increases the absolute dividend. |
ORIOR invests in sustainable organisational development and | |
is establishing the ORIOR Campus as its central platform for | |
Goal 6 | employee training and development. |
ORIOR takes responsibility and promotes sustainability | |
Goal 7 | steadfastly, proactively and purposefully. |
Our ambition
Organic growth
2% to 4% on average
Operating profitability
Annual absolute EBITDA growth EBITDA margin > 10%
Debt ratio
Continuous deleveraging
Net debt/EBITDA of < 2.5x
Strengthening balance sheet quality:
Equity ratio of > 25%
Increasing capital efficiency (ROCE)
Dividend
Steady increase in absolute dividend
Responsibility
Improvement index > 80 % along all our sustainability goals
35 ORIOR 2025 Strategy | Investor Event, 9 November 2020
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Orior AG published this content on 09 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2020 09:47:02 UTC