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Agenda

Introduction to R&S – The local taste champion

How we build ”One integrated company”

Our Future – the focus areas to reach our targets

New financial targets - increasing our profitability

Established in 1839, listed since 1987

Turnover, 2010: 4.6 bNOK

No of Employees, 2010: 3.011, 64% outside Norway

Production Facilities 17 production units in 7 countriesand sales forces : Sales forces in 9 countries

Brands: More than 25 brandsStrong no 1 positions in several

categories

Rieber & Søn - In a nutshell

Our shareholders

Family owned company entering the stock market in 1987 Still concentration in owner structure

1 AS Atlantis Vest 34 427 090 44,38 %

2 Zee Ploeg AS 33 773 290 43,54 %

3 Flu AS 1 700 000 2,19 %

4 Rieber & Søn ASA 1 019 392 1,31 %

5 Vital Forsikring ASA 919 039 1,18 %

6 VPF Nordea Norge 615 750 0,79 %

7Tordis og Fritz C. Rieber's Legat 291 349 0,38 %

8Bergen Kommunale pensjonskasse 250 000 0,32 %

9 Reinkind Asbjørn 201 397 0,26 %

10 Sparebanken Vest 200 000 0,26 %

11 A/S Skarv 139 898 0,18 %

12 Bank of New York 135 905 0,18 %

13 Greve Jan Einar 134 888 0,17 %

14 Jag Holding AS 87 637 0,11 %

15 VPF Nordea SMB 80 800 0,10 %

16 Mar-Theco AS 80 025 0,10 %

17 Storebrand Verdi 75 000 0,10 %

18 Stenersen Yvonne 70 000 0,09 %

19 Daviknes Olav 55 729 0,07 %

20 Lian Anne-Cathrine Mohn 55 137 0,07 %

  20 largest shareholders 74 312 326 95,79 %

  Other 3 263 414 4,21 %  Total 77 575 740 100 %

Production units

Norway:ArnaVossOsLarvikElverumLierne

Sweden:Vimmerby

Denmark:SkælskørHavnsø

Poland:Wloclawek

Czech Republic:BysiceRoudniceVarnsdorf

Netherlands:St. Maartensdijk

Russia:Electrostal

Brands in Norway

Market position main brands: No 1

Market share main categories:

Sauces dehydrated: 89,9 % Soups, dehydrated: 96,8 % Casseroles: 96,6 %

Net sales in Norway 2010: MNOK  1.974,7  

Brands in Norway

TORO is one of the strongest brands in Norway with more than 250 products covering several categories.

Main categories: Soups, sauces and casseroles

The assortment has gradually been broadened to include sweet and coarse bakery products, frozen cakes, rice, canned food and chilled ready meals.

Norwegians love their taco. TORO’s taco casserole is an example of innovation and renewal in one of TORO’s strongest categories.

Brands in the Czech Republic

Market position:Number 1

Market share soups, sauces, casseroles and bouillons: 47 %

Net sales in 2010: 1,6 bil. CZK (510 mil. NOK)

Brands in the Czech Republic

Vitana is a major brand in the Czech Republic and Slovakia with long traditions.

Vitana is the market leader in a number of categories.

Soups, sauces, casseroles and bouillons is the main category for Vitana with a market share of 47 percent.

In 2010 the heath-bringing “Natur” concept, which was first launched as a bouillon and then as a soup, was extended to include “Natur” soups for children and “Natur” meal solutions.

Brands in Poland

Market position: Cake mixes : 1stCoffee traditional & cake ingredients: 2nd

Market share main categories:

Cake mixes : 41,5%Cake ingredients: 24,7%Coffee traditional : 33,6%

Net sales in 2010: 143,6 mio pln

Brands in Poland

Delecta is Rieber & Søn’s major brand in Poland.

Delecta has leading positions in the area of cakes, cake mixes, baking ingredients and desserts.  

Cake mixes are the biggest category with more than 40 percent of the Polish market, followed by cake ingredients with a market share of around 25 percent.  

Girls love Barbie, and children love muffins. Delecta launched Barbie muffins in the market in 2010, and the product was well received by the chains.

Brands in Denmark

Brands in Denmark

Rieber & Søn Denmark comprises the brands Denja, K-Salat and Bähncke, with operations in both the Swedish and the Danish market.

Sweet French Mustard from Bähncke is a unique taste experience. The original recipe from the 1950s is unchanged and has become a classic in all age groups.

Brands in Sweden

Market share main categories: 37% (frozen desserts)

Net sales in 2010: 189 MSEK (exclusive Mrs Cheng's)

Brands in Sweden

The Frödinge brand is well established in the bakery and dessert category.

The business unit is the market leader within frozen desserts in Sweden and has extensive exports to Finland, Germany and Norway.

The main category is deep-frozen desserts where Frödinge is the market leader with 40% of the market, a proportion that rose from 2009 to 2010.

Two of the most important product launches in 2010 were an extension of the fruit and berry pie category and the introduction of a wedding cake dedicated to the royal wedding in Sweden. .

Brands in Russia

Brands in Russia

Rieber & Søn Russia produces and sells nuts and snacks in the Russian market, with Chaka as the dominating brand.  

The main categories are salted nuts (peanuts, pistachios, almonds, hazelnuts and cashew nuts) and salted nut mixes which together make up 92 percent of sales.

In 2010 Rieber & Søn Russia increased its sales in this category by 24 percent and thus became the market leader.

The Chaka brand is enjoying strong growth. Chaka Nut Mix was launched in 2010 and consists of peanuts, almonds, cashews and pumpkin seeds, especially targeted at the younger consumer.

Brands in Germany

Business Model – Local Taste Champion

Small/mid-sized markets with high or growing buying power

Operate where international players do not put first priority Nordics; Norway, Sweden, Denmark CEE; Czech, Poland

Core Competence: Taste Setting and Local Consumer Knowledge

Operate in categories with high formulation level and taste as differentiator

Local Consumer Insight

Branded Player – Build Consumer Loyalty and Price Premium

Our products: Core focus categories

*) Combinations of category and country where Rieber are no 1, respectivally no 2.

2006-2010: Sales and margin development

0

1 000

2 000

3 000

4 000

5 000

6 000

2006 2007 2008 2009 2010

0 %

5 %

10 %

15 %

20 %

25 %

MNOKMNOKNet Sales

EBIT margin

2009 → The new strategic direction

”Our Future” is the overall strategy to increase profitability

Building ”One integrated company” to take out synergies

Significant improvements by restructuring supply chain

Focusing on core business and core categories

Trading up portfolios and brands

Strengthen skills and competence internally

400 MNOK profit improvement by 2012

Optimizing each business unit

Business Unit

Norway

Business Unit

Denmark

Business Unit Food

Service

Business Unit

Czech

Business Unit

Poland

Business Unit

Sweden

Business Unit

Russia

Business Unit

Germany

Business Unit

Cronions

Business Units with potential synergies through similar portfolio and structure

Business Units with independent portfolio focusing on own development

A higher level of synergies

Marketing & SalesMarketing & Sales

ProductionProduction

PurchasingPurchasing

The five BUs with similar portfolio and structure are pursuing the integration process in the Group

Benefits of being integrated

Scale advantages in purchasing Optimized production network Better usage of brands and categories across geographies Knowledge sharing and best practise Common KPIs and tracking tools

Common strategic agenda, common goals

Benefits of cooperation across markets

Chunky Soups

Frozen Cakes

Soups / Meals in Cup

Chocolate drinks

A new organisation

Operational GMT focusing on synergies New cross Group functions established Competence building, collaboration and integration

Sales/marketing Bjørnar Gulliksen

Pers & Org Dev Nina Skage

Communication Geir Mikalsen

CFO Fredrik Witte

Supply Chain Frank Mohn

Denmark Kasper Lenbroch

Poland Jerzy Zalopa

(acting)

Czech./SlovakJerzy Zalopa

Food Service Jørgen Wiig

Norway Ingrid Tjøsvold

President & CEO Patrik Andersson

Our future is spanning over all the group’s activities with the aim to create an integrated food company

The aim is to increase overall efficiency and profitability The methodology is to integrate and extract synergies

by focusing on four main pillars

Our future is the strategic direction

Building an integrated food company … for the future!

Accumulated positive effects amount to NOK 340m since the start in 2009

Implementation costs total NOK 85m The aim is to improve overall Group profitability through

lasting savings of NOK 400m in 2012 The project is proceeding as planned

Status ”Our future” (May 2011)

Building an integrated food company … for the future!

Improvements in production and purchasing

Significant operations improvement in production Review of the overall production structure Centralised purchasing organisation Significant savings in purchasing Competence building and best practice transfer Clear targets per Business Unit

Status Step Up (May 2011)

14 of 17 factories included in the “Future Production” efficiency program. The realized effects are as planned

Strong focus on indirect purchasing categories under Future Purchasing. The project is progressing as planned

“Future Product Development” project designed to optimize recipes and specifications aimed at reducing purchasing costs

Focusing on core business

Group Structure /Portfolio Focus on Core categories Exit non core categories Identify solutions for underperforming assets

BU Specific pruning Improvement plans per Business Unit:

Denmark, Poland, Cronions Tail cutting & margin improvement Strengthen capabilities in

marketing/sales

Status Core Review (June 2011)

2011:

Elverum plant for production of industrial spices sold

2010:

King Oscar soldAnja Cake factory in Poland sold

2009:

Marine ingredients soldSopps pasta brand soldRieber Kruiningen onion rings sold

How we grow in profitable segments

Adopt portfolios towards semi finished/ready made dishes

Focus on value per serving through product development

Brand migration of small brands into bigger brands Increase investments in main brands Focus on price management and promotion efficiency

Mergers and Acquisitions activity

Lierne Bakery acquired in 2011

Lierne Bakery is Norway’s leading producer of griddle cakes and party cakes for the grocery and catering

market

The acquisition will provide considerable synergies in purchasing, production and sales

+ 40 %+ 40 %20 NOK 28 NOK

Price premium per pack

+ 35% + 35%

Price premium per pack

+ 65% + 65%

Price premium per portion

+ 75% + 75%

Price premium per pack

Trading up products

Group – Profit & Loss

NOK m 2010 2009 2008 2007 2006

Sales 4 546 4 967 4 997 4 603 4 263

EBIT 460 424 356 274 380Gross Margin 59,9 % 56,7 % 56,0 % 55,8 % 56,5 %

EBIT-margin 10,1 % 8,5 % 7,1 % 6,0 % 8,9 %

EPS (NOK) 3,91 3,32 2,46 2,18 3,30

Group – Balance Sheet

NOK m 2010 2009 2008 2007 2006

Operational cash flow 491 552 382 273 364

CAPEX 96 220 198 257 143

Capital employed 3 032 3 315 3 342 3 173 2 851

ROCE 15,0 % 12,8 % 10,9 % 9,3 % 13,8 %

Equity 2 007 1 893 1 967 1 600 1 588

Equity ratio 57 % 48 % 44 % 42 % 40 %

Net int.bearing debt 413 913 1 119 1 156 1 157

Western Europe: 2008 - 2010

NOK m 2010 2009 2008

Sales 3 340 3 560 3 502

EBIT 400 375 314Gross Margin 61,0 % 57,5 % 57,0 %

EBIT-margin 12,0 % 10,5 % 9,0 %

Western EuropeNet Sales - Geographical breakdown

65 %

13 %

10 %

5 %

1 %

1 %

4 %

Norway

Denmark

Sweden

Germany

Finland

United Kingdom

Other countries

Central Europe: 2008 - 2010

NOK m 2010 2009 2008

Sales 991 1 039 1 065

EBIT 51 33 25Gross Margin 55,2 % 52,8 % 52,6 %

EBIT-margin 5,2 % 3,2 % 2,3 %

Central EuropeNet Sales - Geographical breakdown

52 %

27 %

10 %

10 %

Czech Republic

Poland

Slovakia

Other countries

Russia/Others: 2008 - 2010

NOK m 2010 2009 2008

Sales 307 469 519

EBIT 9 16 17

Gross Margin 44,8 % 47,0 % 46,4 %

EBIT-margin 3,0 % 3,4 % 3,2 %

Russia/OthersNet Sales - Geographical breakdown

48 %

17 %

11 %

9 %

15 %

Russian Federation

United States of America

Poland

Norway

Other countries

Financial targets in “Our Future”

“Step Up” and “Trading Up” increasing profit by approx. 400 MNOK by 2012

EPS ≈ 3.50 NOK by 2011 EBIT higher than 10 % by 2011 ROCE 17 % by 2011 Adjusting our dividend policy upwards

Implementation cost 125 mNOK over the period!

400 MNOK profit improvement by 2012

mNOK

Double-digit EBIT-margin in 2011

“Step Up” and “Trading Up” – our most important value-drivers Structural changes leads to improved margins Increased brand- and consumer-marketing Pressure from competition and trade will decrease margins

7,1% >10%

Summary: Building our Future

”Our Future” is the overall strategy to increase profitability and efficiency, and how we build ”One integrated company” for the Future!

400 MNOK in profit improvement by 2012 EBIT-margin higher than 10 % in 2011 EPS ≈ 3.50 NOK in 2011

Q&A

Thank you!