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Valora Holding AG

EANS-Adhoc: Valora Holding AG
Valora 4 Growth programme to develop Valora into a leading pan-European trading company

  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
25.11.2010
Valora 4 Growth programme to develop Valora into a leading 
pan-European trading company
• Valora 4 Success objectives largely achieved - EBIT increased some 
40% since 2007 • Valora 4 Growth is next step towards sustainable 
incremental value generation • Growth objective is to double 
operating profits by 2015:   - External sales to reach some CHF 4 800
million   - EBIT to reach CHF 160 - 180 million • New strategy to be 
financed without issuing additional equity
Valora 4 Success objectives largely achieved - EBIT increased some 
40% since 2007
Since 2008, Valora´s operations have become significantly more 
efficient and professional. The Group as a whole and its individual 
divisions have raised their profiles and gained momentum. Ongoing 
implementation of the Valora 4 Success strategy programme has now 
essentially completed the Group´s turnaround. The four core 
initiatives - Core Business, Growth, Efficiency and People - have 
been successfully implemented in the face of very challenging market 
conditions, and they have achieved notable results:
Core business Retail´s market presence is now projected by four 
clearly-positioned sales formats. New and successful product range 
modules, such as the ok.- range and additional service offerings, 
have been introduced. Meanwhile, the Services division has initiated 
a major strategy shift in order to counteract the effects of the 
decline in the overall press market.
Growth By the end of 2010, the successful avec. concept will have 
been rolled out to nearly 100 outlets, thus establishing avec. as 
Switzerland´s third-largest convenience store brand. A number of 
add-on acquisitions have been successfully carried out in Germany. 
The P&B press and book shop concept has been introduced to the Swiss 
market, where it is achieving promising growth.
Efficiency Logistics operations in Switzerland and Luxembourg have 
been completely re-configured and uniform IT platforms have been set 
up. Both these initiatives have enabled Valora to achieve significant
and sustainable cost savings. Staff numbers have been reduced over 
the last two years.
People This initiative has made it possible for the Group to achieve 
the change in leadership culture it had planned. Improved, modern 
employment conditions have been introduced for sales staff. Greater 
customer focus has been actively promoted and both the quality of 
Valora´s market research and its understanding of its markets have 
been improved.
The Valora Group has worked consistently and successfully on 
implementing its Valora 4 Success strategy programme, thus 
significantly raising its profitability. In the face of challenging 
economic conditions, the EBIT will rise from CHF 59 million in 2007 
to a guidance range of CHF 81 - 86 million in 2010 (with full-year 
2010 EBIT expected to be at the lower end of this range). This 
implies an improvement of some 40 percent.
Valora 4 Growth is next step towards sustainable incremental value 
generation
Implementation of the Valora 4 Success programme has enabled the 
Valora Group to achieve noteworthy performance. During 2011, the 
Group will target the programme´s remaining objectives, with a view 
to achieving all its goals by 2012, in line with the announcements 
made when the programme was launched in the autumn of 2008. Projects 
now under way in the Efficiency and People initiatives will be 
completed. Functions which are not essential to the Group´s core 
business will be outsourced and entrepreneurship will be encouraged.
In the markets in which Valora currently operates, the scope for 
generating incremental value from purely organic growth is limited, 
however. Additional, external growth offers new opportunities for 
Valora to advance over time to become a leading pan-European trading 
company, with net revenues in the CHF 4.5 billion to CHF 5.0 billion 
range. Building on the achievements of its Valora 4 Success 
programme, the Group will now extend the implementation of its 
strategy to the next level with its Valora 4 Growth programme.
Planned growth based on four initiatives
Valora 4 Growth will build on organic and external growth. The 
programme comprises the following four initiatives:
• G1 - organic margin growth generating 0.2 percentage points of 
additional EBIT margin annually. Kiosk Switzerland will further 
improve its profitability levels, while the Services division will 
streamline its cost base.
• G2 - organic revenue growth of 2 percent per year, based on the 
expansion of the Group´s current activities. Initiatives here include
extending the product ranges offered by the Retail and Services 
divisions and expanding the current outlet network. The avec. and P&B
formats will be fine-tuned where necessary and expanded. Increased 
professionalism will enable the Trade division to strengthen its 
position with its current principals.
• G3 - external growth at Retail/Services with the objective of 
becoming one of Europe´s leading micro-retailer. Expansion will 
concentrate primarily on the highly fragmented German kiosk market. 
By acquiring further smaller-sized chains and individual outlets, 
Valora intends to expand its German network to some 1,000 outlets. 
The recently acquired tabacon network with its successful and 
professional franchise model will provide an ideal platform from 
which to execute the acquisitions planned in this area. Valora also 
believes that adding one or two new retail concepts in the rapidly 
growing travel retail market - to complement its existing and 
successful portfolio - will provide additional growth opportunities. 
The focus here will be formats which can be integrated into the 
existing outlet network, thus increasing potential synergies.
• G4 - external growth at Trade thus expanding the division to become
the largest pan-European distributor. Trade´s current product range 
categories will be extended to include new, rapidly-growing, 
high-margin products in its existing markets. Simultaneously, the 
division´s European presence will be extended through the acquisition
of leading distributors in new markets. This summer´s acquisition of 
Engelschion Marwell Hauge (EMH), the Norwegian distributor of 
high-end cosmetic products, is an example of the division´s future 
trajectory in this area. By establishing regional distribution 
platforms, Valora Trade aims to strengthen both its attractiveness to
potential business partners and its market position.
Growth objective is to double operating profits by 2015
The Valora 4 Growth programme aims to raise the Group´s operating 
profits substantially by 2015. By that year, Valora intends to 
generate some CHF 1,800 million in additional external sales. This 
equates to revenue growth of some 10 percent each year, of which 8 
percent will initially be achieved through acquisition. Valora 4 
Growth is projected to raise the Group´s EBIT by some CHF 85 million 
by 2015, or 15 percent each year. The objective is thus for Valora to
generate EBIT of CHF 160 - 180 million by 2015, thus doubling its 
current operating profits.
Figures in CHF million (all values are indicative)
Initiative                          External revenues approx.  EBIT approx.
External revenues | EBIT 2010E         3 000                      81 - 86
Organic margin growth                    n.a.                       +15
Organic revenue growth                   +300                       +20
External/non-organic growth
Retail /Services                         +900                       +30
External/non-organic growth
Trade                                    +600                       +20
Total                                  +1 800                       +85
External revenues | EBIT 2015E  approx. 4 800               approx. 160 - 180
External revenues | EBIT 2012E  approx. 3 700               approx. 110 - 130
Growth strategy to be financed without issuing additional equity
The Valora 4 Growth strategy, and in particular the planned acquisitions by the
Retail and Trade divisions, will require additional funds of the order of CHF
200 - 400 million. Valora will be able to finance this growth strategy without
issuing additional equity. Should the Group, during the implementation of its
Valora 4 Growth programme, have at its disposal additional funds which it does
not need to finance growth, these will be distributed to its shareholders. The
Group also intends to continue with its current shareholder-oriented dividend
policy.
The Valora 4 Growth strategy is the continuation of the solid work which has
been carried out over the last three years. Rolando Benedick, Chairman of
Valora´s Board of Directors, and Thomas Vollmoeller, the Group´s CEO, are
convinced of Valora´s future prospects. "The objectives Valora has achieved so
far inspire us with confidence. Today, the Group has greatly strengthened its
position and has excellent prospects for the future. The time has now come to
achieve profitable growth, thus creating added value for our shareholders and
all our other stakeholders."
The following documents are available on www.valora.com
Press release
http://www.valora.com/en/newsroom/newsinformation/news_00374.php
Investors´ & Media Day 2010 presentation http://www.valora.com/media/
documents/english/presentations/2010/pres_investors_day_2010_en.pdf
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Valora Telephone Conference - Investors´ & Media Day 2010
Thursday, November 25, 2010 | 15:00 CET
Thomas Vollmoeller, CEO of Valora Holding AG, and Lorenzo Trezzini, 
CFO, will provide information about "Valora 4 Growth" during a 
telephone conference. The Dial-In Conference Call will be held in 
English.
To participate in the conference: call the following number (please 
call 10 to 15 minutes before the hour):
+41 (0) 91 610 56 00 (Europe)
        +44 (0) 203 059 58 62 (UK)
        +1 (1) 866 291 41 66 (USA - Toll-Free)
The playback will be available one hour after the conference for 24 
hours till November 26th, 2010, inclusively. Participants requesting 
the Digital Playback will be dialing:
+41 (0) 91 612 43 30 (Europe)
         +44 (0) 207 108 62 33 (UK)
         +1 (1) 866 416 25 58 (USA)
and will be asked to enter the Code 16939 followed by the # sign
****************************
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO 
THE UNITED STATES THIS DOCUMENT IS NOT BEING ISSUED IN THE UNITED 
STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR 
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS 
DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR 
OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF VALORA 
HOLDING AG HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES 
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE 
UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN 
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED
STATES SECURITIES LAWS
This document contains forward-looking statements about Valora which 
may incorporate an element of uncertainty and risk. The reader must 
therefore be aware that such statements may diverge from actual 
future events. These forward-looking statements are projections 
relating to possible future developments. All the forward-looking 
statements contained in this document are based on data available to 
Valora at the time this document was prepared. Valora makes no 
commitment whatsoever to modify forward-looking statements in this 
document at a later date to reflect new information, future events or
the like.
end of announcement                               euro adhoc

Further inquiry note:

Investor Relations: Phone: +41 58 789 12 20
Mladen Tomic +41 79 571 10 56
E-mail: mladen.tomic@valora.com

Media Relations: Phone: +41 58 789 12 01
Stefania Misteli +41 79 467 52 16
E-mail: stefania.misteli@valora.com

Branche: Retail
ISIN: CH0002088976
WKN: 208897
Börsen: BX Berne eXchange / stock market
SIX Swiss Exchange / Main Standard

Plus de actualités: Valora Holding AG
Plus de actualités: Valora Holding AG