Entering emerging markets

Entering emerging markets

Marc den Hartog, CSM, Jan 2013

Introducing CSM

1919

Founded through a merger of 3 Dutch

sugar manufacturers

Today

the world’s largest supplier of bakery

products & ingredients

a leading player in natural food preservation,

extended shelf life and bio-based chemicals

• annual sales € 3.3 billion

• workforce of around10.000 employees

• operating in 28 countries worldwide

• 45 manufacturing sites

Approach to international expansion

Assessments of market attractiveness

Adjacency to the core

Operating risk

Importance of local manufacturing

Operating models

Local distribution partners, in combination with rep. office

Joint Ventures

Own company (acquisitions, greenfield)

Leveraging core strengths

Remarkable products with well-known (B2B) brands

Category leadership

Global key account relationships

Food going global

Starbucks India

The market opportunity of North Africa

LIBYA

TUNISIA

ALGERIA

MAURITANIA

MOROCCO

36,3 M

32,1 M

6,6 M

10,6 M

3,4 M

90 M TOTAL POPULATION

26,7 Y AVERAGE AGE

TOTAL GDP 607 B $

Search for strong local partner, found in Tunesia in 2011:

leading position in Bakery Ingredients and Fats in North Africa

Part of SLAMA group (founded 1950)

Aligned objectives

Similar business culture

The market opportunity of North Africa

Partnership & shared passion to build the business together

Both partners complementary contributions to J/V

CSM World class manufacturing, global innovation & marketing know-how

GIAS Local brands, established business infrastructure & distribution

Purac Thailand Ltd.

Purac Thailand product portfolio

Basic Lactic Acid

Base material for other PURAC Factories globally

Direct supplies to the market in different grades

Lactates

mainly used as food preservative and cosmetic applications

Buffered Lactic Acid

mainly used as buffering agent for a/o confectionery

© 1/31/2013

2011 Investment of €45 million for production of lactide monomer

Lactide forms the basis to produce Bioplastics (PLA)

PLA reduce CO2 emissions with 70% vs mineral oil based plastics

Feedstock consists of local agricultural products

Investing for renewable Bio plastics

Checklist

Deep understanding of local market

Contribution to the core

Organizational fit

Role of a local partner

Long term view

Thank you