HKScan seeks development benefits of EUR 30 million in Sweden
CEO Matti Perkonoja Pressmeeting in Helsinki, 15 September 2009 at 11am
Group structure
HKScan Corporation Net sales in 2008: EUR 2 294.6m, CEO Matti Perkonoja Finland Sweden Baltics Polandnet salesin 2008: EUR 168.2m• AS Rakvere LihakombinaatManaging director Anne Mere• AS Tallegg Managing director Teet Soormnet sales in 2008:EUR 270.9m**• Saturn Nordic Holding AB Î Sokolów S.A. Managing director Boguslaw Miszczuk net sales in 2008:EUR 1 179.3m• Scan ABManaging director Denis Mattssonnet sales in 2008:EUR 740.4m• HK Ruokatalo Oy Managing director Jari Leija
* Between segments EUR -64.3 million
** Joint venture Saturn Nordic Holding AB owned 50/50 by HKScan and Danish Crown AB holds 100% of the shares of Sokolów. In 208, half of Sokolów's net sales, i.e. EUR 270.9 million, was accounted for in the figures of the HKScan Group. Sales office
03/2009Matti Perkonoja 15.9.2009
Objectives of stage 2 of the road map in Sweden
- 1. Strengthening Scan's market standing
- •Customers
- •Suppliers
2. Bringing profitability up to 5%
- •EUR 30 million in development benefits
- •Adaptation of structure and operations to the changed market
- •Introducing a leaner organisation
- •Streamlined industrial structure
- •Streamlined legal structure of subsidiary
3. Creating the foundation for profitable future growth
4
Aims of the road map
Sweden
Scan AB managing director Denis Mattsson Pressmeeting in Helsinki, 15 September 2009 at 11am
Scan AB in brief
- • Largest meat industry company in Sweden with a history going back more than 100 years, to 1899
- • Formed in January 2007 when the business of Swedish Meats cooperative was incorporated into Scan AB
- •Net sales in 2008 were EUR 1 179.3 million.
- • 3 000 employees and 11 production plants: in Sweden (9), Denmark (1) and Poland (1)
- •Meat industry market leader in Sweden
- • Scan is a market leader and one of the most well-known consumer brands in Sweden and part of the national identity.
- •Products include sandwich meats, sausages, bacon and packaged meats
Scan brands
Source: AC. Nielsen, cumulative 2009, of retail value
Market position in the Swedish retail sector
Source: AC. Nielsen, cumulative 2009, of value
Stage 1 development measures 2007-2008
- • Investments:
- •Expansion of bacon plant in Swinoujscie, Poland
- •National distribution centre in Linköping, online in 2010
- • Discontinued operations:
- •Visby and Uppsala meat cutting
- •Uppsala and Skellefteå slaughterhouses
- •Production in Helsingborg, Malmö and Kävlinge
Reasons for introducing the new road map
- •Bringing EBIT to 5% by 2012
- • Changes in the industry:
- •increased imports
- •competitive situation
- • Changes in meat consumption
- •red meat
- •white meat
- •processed meats
Scan's fundamental dilemma: excess capacity and lack of cost competitiveness
Stage 2 of the road map, 2009
-
- Management reorganisation and new management system
-
- Second-stage development programme planning in accordance with objectives set by the Board of Directors of HKScan
-
- Establishment of sourcing company and repositioning of meat sourcing
- 4.Launch of road map implementation
Scan's operating model
•customer-driven resource planning and adaptation of sourcing and production
Resources
Denis Mattsson 15.9.2009
Scan production plants
Road map, stage 2:
•production would cease:
- •in Uppsala
- •at Kreatina in Denmark
- •at Esca in Linköping
•production would be scaled back:
•in Skara
•production would be centralised:
- • to Linköping: slaughter and cutting of beef and lamb, production of consumer packed meat
- • to Kristianstad: slaughter and cutting of pork
- •to Skara: ground meat products
- • Collaboration would be explored in respect of operations in Visby.
Potential job impacts of stage 2 of the road map
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- •Total workforce ca. 500 employees (white-collar included)
- • Jobs may be available to some
- •in Kristianstad
- •in Linköping
- •in Kreatina, Poland