Thursday, February 26, Massy Distribution Limited

Transcription

1 Thursday, February 26, 2015 Massy Distribution Limited

2 A Force for Good: Creating Value, Transforming Life. The Most Responsible and Profitable Investment Holding Company in the Caribbean Basin The Massy Group is a diversified regional conglomerate operating in the English-speaking Caribbean for over 90 yrs. Listed on the Trinidad & Tobago stock exchange. 2013: Revenue US$ 1.5 Billion / Op. Profit US$131 Million Operating through its subsidiaries with diversified activities in Trinidad & Tobago, Guyana, Jamaica, Barbados, St. Lucia, and the USA. 3 Lines of Business, offering a range of quality products and services and representing several international brands. 10,000 employees most of whom are shareholders Commitment to the shareholders and the development of the Caribbean Region. Guards its long established reputation for integrity and fair-play in all business dealings.

3 A Force for Good: Creating Value, Transforming Life. The Most Responsible and Profitable Investment Holding Company in the Caribbean Basin Our Values Growth & Continuous Improvement Collaboration Responsibility Honesty & Integrity Love & Care

4 A Force for Good: Creating Value, Transforming Life. The Most Responsible and Profitable Investment Holding Company in the Caribbean Basin

5 Integrated Retail Business Model To develop a sustainable competitive advantage and achieve its growth objectives The Massy Group has built a Regional Integrated Retail Business. Become the one-stop Caribbean distributor for international principals Sharing of best practices across companies Capture volume benefits Obtain preferred supplier relationships with principals Critical Mass Regional Caribbean Distribution Business Ownership of Retail Formats Customer Service Low Cost Distribution Model Go-to-Market model tailored to the Region and the specific markets in which we operate One Partner for the English Caribbean Capture synergies opportunities across subsidiaries Investment in Technology - Access to Information Increase revenue Reduce cost-to-serve Increase attractiveness to principals Add value to our customers

6 Distribution Line of Business The Food/Consumer Distribution Business Unit operates in Trinidad and Tobago, Barbados, Jamaica, St Lucia, Guyana and Miami. Massy Distribution continues to attract a growing list of Multinational, Regional and National principals. Significant strides have been made in gaining market share by leveraging our long-standing customer relationships, in favor of the product portfolios of our local and international suppliers. Massy Distribution has successfully implemented an alternative distribution strategy in each market designed to successfully manage conflicting businesses through independent commercial divisions, while at the same time offering all the commercial, financial and retail opportunities derived from being a part of a larger group. This strategy has effectively reduced go-to-market costs for our principals and consumer base. Massy Distribution maintains a strategic link to the group s supermarkets allowing for preferential access and immediate commercialization.

7 Belize We operate consumer goods distribution companies in Trinidad and Tobago, Guyana, Jamaica, Barbados, St. Lucia and the USA Utilizing the critical mass of over 40 retail locations We leverage the distribution ecosystem to connect suppliers and customers across the region and outside the region Our Group is a one-stop shop for consumer goods distribution from Miami throughout the Caribbean to Guyana Aruba, Curacao, Bonaire Guyana One Partner for the English Caribbean

8 Trusted Business Partner of Global Brands- Growing Regional Alignment Aligned 4-5 Markets Aligned 3 Markets Aligned 2 Markets Not Aligned

9 Based in Miami, Florida, Massy Distribution USA has been operating for over 30 years. The Company offers large international principals a comprehensive but cost effective way of managing and accessing the smaller markets in the Caribbean. The Company has acquired the distribution rights to represent a number of international brands with distribution into 16 markets across the Caribbean Focus on smaller Caribbean markets Brand Representation & Development Ability to handle dry & refrigerated products Logistics & Consolidation Services Market Knowledge and attention to detail

10 Massy Distribution (Barbados) Ltd. is the largest multi-principal distributor in Barbados with a strategic link to the Island s largest chain of Retail Supermarkets. The Company is modern, efficient company with established strengths in distribution across all channels including Retail, Wholesale, Food Service, Institutional and Down Trade. 318 Employees Warehousing : 170,000² SF Delivery fleet: 30 heavy trucks / vans and 8 containers. ISO 9001:2000 certification in process. Alternate Distribution Division: Massy Trading Massy Distribution (Barbados) Ltd provides highly effective representation to a wide variety of International, Regional and local principals across an extensive range of commodities and branded consumer products. Nationwide distribution of dry food, GM, HBC, pharmaceuticals, wines & spirits, produce, meat, chilled and frozen foods.

11 Massy Distribution (Jamaica) Ltd. is a leading multi-principal distribution and contract manufacturing company in Jamaica. Our consumer and pharmaceutical divisions are supported by a well-trained and motivated Sales Team, Brand Managers, Merchandisers and other support staff. Focused Pharma / F&GM / HBC. 215 employees Warehousing: 157,000² SF Alternate Distribution Division: Massy Trading Incorporating 2 distribution divisions Massy Distribution (Jamaica) is one of the Island s leading distribution companies providing effective representation to a wide variety of International, Regional and local principals in both commodities and branded consumer products.

12 Massy Distribution (St. Lucia) Ltd- a greenfield operation, began operations on October 1, With several major International principals already on board, the business has experienced substantial growth within its first year of operations and raised the level of service offered to both Principals and Customers by distribution businesses in St. Lucia. The Company offers nationwide distribution to 40 key and 600 down-trade accounts through a trained and motivated sales team consisting of Key Account Managers, Brand Promoters/Merchandisers and Van Salesmen. F&GM 30 employees Warehousing: 24,000² SF Fleet: 7 trucks

13 Massy Distribution Trinidad is the largest multi-principal distributor in Trinidad & Tobago with over 100 years experience. Incorporating 3 distribution divisions, Massy Distribution is a modern and efficient full service distribution company which provides highly effective representation to a wide variety of International, Regional and local principals and offers Nationwide distribution of F&GM, HBC, pharmaceuticals, wines & spirits, produce, meat, chilled and frozen foods.. Revenue 2013 US$ 200 Million 560 employees Warehousing: 200k ft² Awarded ISO 9001:2000. Alternate Distribution Division: Massy Trading

14 Massy Distribution (Guyana) Inc. is the leading full service multiprincipal Company in Guyana with over 100 years of experience in the distribution business. Incorporating 2 distribution divisions the Company is Guyana s premier distribution company providing effective representation to a wide variety of International, Regional and local principals in both commodities and branded consumer products. 206 employees Warehousing 687k Cu ft. Awarded ISO 9001:2000 Alternate Distribution Division: Massy Trading The Company boasts an extensive van sales DTT operation offering 100% national distribution and penetration. Nationwide distribution of dry food, GM, HBC and pharmaceuticals.

15 Retail Line of Business o o o o o o Largest Food Retail Network in Southern Caribbean 41 Modern Retail Stores operating 4 Countries Retail expansion in Guyana underway Retail Excellence Differentiate on Service Largest pharmacy network 21 Outlets Access to 3,000,000 consumers Trinidad 20 St Lucia 11 St Vincent 3 Barbados 7 Guyana

16 Trinidad & Tobago Supermarkets & Pharmacies The largest Supermarket Chain in Trinidad offering a full range of grocery, beauty care, house hold consumer products including in-store pharmacies, bakeries, produce and Fresh Meats. Massy Food Stores currently serves families across the island with 19 modern stores and over 1,800 employees. The Chain has been in existence for 65 years and is noted for quality retailing with a retail market share of 20%. Customer Count: 275k / week SMS Retail Management and Information Database 2 Soft Discounter retail formats Retail Renovation and Geographic Expansion underway Massy Pharmacy division operating from 6 locations within the Chain.

17 Barbados Supermarkets & Pharmacies Our Family serving Your Family! With 45 years of quality retailing, Massy Stores is the largest supermarket chain in Barbados. 6 Modern stores offers an extensive product selection that includes grocery, general merchandise, fresh and frozen items and specialty foods. The supermarkets also offer a variety of ancillary services including banking and telecommunications. Retail Market Share: 35% Customer count - 130k / week SMS Retail Management and Information Database 1 convenience store 1,100 employees With six in-store and two stand alone locations, Massy Pharmacy is the oldest and most established chain on the Island. The brand represents 32% of the pharmaceutical retail market share.

18 St. Lucia Supermarkets & Pharmacies Consolidated Foods Ltd. dominates the food retail landscape in St Lucia. CFL operates nine Super J IGA supermarkets (in convenient locations around the island), 1 GL Foods supermarket and a 50,000 sq. Ft. Club Store called Mega J. More recently through its subsidiary CFL SVG Holdings the company acquired the operational contract for Save A Lot store in St. Vincent and also operates two Super J IGA supermarkets in that island. Stores feature in-store pharmacies, bill express services, delis, ATMs, combined with the company s successful integration of technology at the store level. Having recently been acquired by the Massy Group all Super J s and Mega J s stores are soon to be rebranded Massy Stores.

19 Coming soon. Guyana Retail Supermarkets The Massy Group is committed to expanding its business in Guyana. Specifically, it is committed to extending its successful business model of pairing its Food distribution companies with a strong retail presence in the markets in which it operates. To this end the Group is currently finalising plans for the construction of 2 large modern retail supermarkets in Guyana (40,000sq ft & 25,000sq ft) to be completed by The stores, which are expected to revolutionize the Supermarket Industry in this growing market, will offer a full range of grocery, beauty care, house hold consumer products including in-store pharmacies, bakeries, produce and Fresh Meats.

20 Thank You!

21 Our businesses continue to be challenged for growth by macro-economic headwinds originating from developed markets such as the USA and Europe Trinidad & Tobago Barbados Jamaica St. Lucia Real GDP, F (US$, billions, base year: 2005) % % 3.8 0% % % 0% +1% +3% F Macro-economic synthesis Real GDP growth is expected to improve primarily from greater momentum in the energy sector. Heightened short-term political risk due to recent developments. Stable economic outlook. Challenged economic environment with rising unemployment, declining foreign reserves, high debt to GDP ratios and potential for currency devaluation. However GDP/capita remains high. Environment may lend itself to consolidation. Very challenging economic environment with high unemployment, high debt: GDP ratios and currency devaluation. Under IMF program (with support from WB / IDB) Key challenges for consumers and businesses is the high cost of energy. Challenging economic environment, however fiscal reforms have been enacted by the government, which have resulted in positive effects on its fiscal deficit. Fiscal consolidation and proposed budget cuts could elevate the risk of labour unrest. Positive signs on tourist arrivals from North America. Stable political outlook. Source: CBTT, CBB, BoJ, ECCB, IMF, BMI, team analysis