Untitled - CBS Observer

Appendix A:
Financial statements
Balance
million DKK 2007 2008 2009 2010 2011
Goodwill 54.8 52.4 48.4 44.4 40.5
Development costs 0.3 0.1 - - -
Intangible assets 55.1 52.6 48.4 44.4 40.5
Land and buildings 102.6 95.5 89.4 85.2 84.4
Plant and machinery 181.8 259.9 225.3 222.9 195.5
Other fixtures and fittings, tools and equipment 0.1 0.9 0.7 0.4 0.2
Property, plant and equipment in progress and prepayments 42.4 4.0 8.5 1.6 5.1
Property, plant and equipment 327.0 360.3 323.9 310.1 285.3
Other fixed assets - - 2.7 2.7 2.7
Investments in associated companies - - - - -
Fixed asset investments - - 2.7 2.7 2.7
Fixed assets 382.1 412.8 375.1 357.3 328.4
Inventory 242.0 269.5 207.9 237.8 227.2
Trade receivables 207.2 160.6 145.0 181.4 223.2
Corporate tax - 9.6 5.4 2.5 -
Receivables from group enterprises - - - - -
Other receivables 47.7 41.8 16.1 11.5 13.8
Prepayments - - - 0.3 3.8
Receivables 254.9 212.1 166.5 195.7 240.8
Securities 10.7 9.4 8.0 6.0 4.2
Cash and cash equivalents 71.3 114.2 97.4 111.8 164.9
Total current assets 578.9 605.1 479.8 551.3 637.1
Total assets 961.0 1,018.0 855.0 908.6 965.5
million DKK 2007 2008 2009 2010 2011
Share capital 3.5 3.5 3.5 3.5 3.5
Retained earnings 463.5 469.0 499.3 550.3 556.2
Proposed dividend 15.0 5.0 -
Equity 482.0 477.5 502.8 553.8 559.7
Deferred tax 40.1 41.9 42.5 43.5 29.4
Other deferred provisions 4.8 4.2 1.8 1.7 1.7
Provisions 44.9 46.1 44.4 45.2 31.1
Bank debt 66.4 42.9 28.6 14.2 -
Long-term debt 66.4 42.9 28.6 14.2 -
Short-term payments of long-term debt 23.6 23.6 14.3 14.3 14.3
Credit institutions 8.0 122.8 31.0 24.1 13.4
Trade payables 139.6 111.5 82.1 93.5 98.4
Corporate tax 5.3 - - - 7.8
Other debt 191.2 193.6 151.8 163.4 240.8
Short-term debt 367.7 451.5 279.2 295.3 374.7
Total debt 434.1 494.3 307.8 309.5 374.7
Total liabilities 961.0 1,018.0 855.0 908.5 965.5
P&L
million DKK 2007 2008 2009 2010 2011
Net revenue 1,389.3 1,343.7 1,219.8 1,296.5 1,396.1
Cost of goods sold (933.4) (944.9) (825.5) (850.2) (937.4)
Gross profit 455.9 398.8 394.3 446.3 458.7
Sales and distribution costs (307.5) (327.7) (297.5) (316.0) (359.3)
Administrative costs (62.1) (65.1) (53.6) (66.0) (75.7)
Other operating income 11.1 15.7 0.2 - 5.6
Other operating expenses - - (0.4) (0.2)
EBIT 97.5 21.7 43.4 63.9 29.1
Income from investments in associated companies - - - - -
Financial income 3.2 2.9 5.5 6.7 22.4
Financial expenses (6.5) (12.6) (6.5) (2.5) (25.8)
Profit before tax 94.2 12.0 42.5 68.1 25.7
Company tax (19.4) (0.8) (12.0) (16.3) (4.5)
Profit after tax 75.4 11.3 30.0 51.8 21.2
Cash flow statement
million DKK 2007 2008 2009 2010 2011
EBIT 97.5 21.8 43.0 63.9 29.1
Net financials (4.7) (9.7) (0.9) 4.2 (3.4)
Depreciation and amortization 48.3 54.7 60.7 54.2 55.1
Total 141.0 66.8 102.8 122.3 80.8
Change in inventory (24.9) (27.5) 61.6 (29.9) 10.6
Change in trade receivables (14.9) 46.6 15.6 (36.4) (41.8)
Change in other receivables 4.6 5.9 25.7 4.6 (2.2)
Change in prepayments - - - (0.3) (3.6)
Change in trade payables 19.9 (28.1) (29.4) 11.4 4.9
Change in other debt 0.2 2.4 (41.8) 11.4 77.7
Change in value of financial instruments - - - (2.5) (20.6)
Change in provisions 1.9 (0.5) (2.4) (0.1) (0.1)
Change in taxes paid (21.4) (13.4) (7.3) (10.7) (3.2)
Cash flow from operating activities 106.5 52.1 124.8 70.0 102.5
Cash flow from investing activities (84.8) (85.4) (23.0) (36.4) (26.2)
Cash flow from financing activities (47.3) (38.6) (28.6) (14.3) (14.3)
Net cash flow for the year (25.7) (71.9) 73.2 19.2 62.1
Appendix B:
Market data
Global chocolate
sales by region
32 % Western Europe
20 % North America
17 % Asia
13 % Latin America
12 % Eastern Europe
4 % Middle East & Africa
2 % Australia
Source: Euromonitor, 2012
World top 15 chocolate confectionery markets World top 15 annual chocolate
consumption per capita
Country 2012
Forecasted growth
2012-2017
USA 19,289.3 8.7%
UK 9,672.5 13.1%
Russia 8,699.7 10.8%
Germany 7,604.6 0.4%
Brazil 6,620.6 47.2%
France 5,513.6 1.8%
Japan 4,329.7 -3.5%
Italy 3,349.1 -1.7%
Canada 2,722.1 9.6%
Australia 2,432.1 2.6%
China 1,946.1 32.4%
Ukraine 1,896.1 24.3%
Poland 1,748.4 6.5%
Switzerland 1,655.0 5.8%
Argentina 1,600.7 6.7%
Retail value in USD mio · Source: Euromonitor, 2012
Top 25 chocolate confectionery companies by revenue
Country 2011
Ireland 11.2
Germany 11.1
Belgium 11.0
Switzerland 10.7
UK 10.2
Austria 9.4
Norway 8.5
Denmark 7.7
France 6.8
Finland 6.8
Sweden 6.8
USA 5.6
Australia 5.3
Italy 4.3
Canada 3.9
Volume in kilos · Source: Euromonitor, 2011
24 CBS CASE COMPETITION 2013
25
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
USDm
Mondelez International (US)
Mars (US)
Nestlé (CH)
Ferrero (ITA)
Source: Company annual reports, 2011
Hershey (US)
Perfetti Van Melle (NL)
Haribo (DE)
Lindt (CH)
August Storck (DE)
Yildiz (TR)
Meiji (JP)
Arcor (AR)
General Mills (US)
United Confectioners (RUS)
Roshen Confectionery (UKR)
Lotte Confectionery (KR)
Ezaki Glico (JP)
Morinaga (JP)
Orion (KR)
Crown Confectionery (KR)
Henry Lambertz (DE)
Leaf International (NL)
Bahlsen (DE)
Sweet Products (BE)
Groupe Cemoi (FR)
Toms (DK)