Bell Food : Rapport de gestion 2022 (en anglais) (7 MB)

Contents

1. Important events 2022

1. Key figures

1. We love the good things

1. We shape the future

1. We take responsibility - sustainability at the Bell Food Group

1. Editorial

Situation report

18 Business activities Business

Products and core markets Customers and sales channels Procurement and suppliers Organisation

Innovation management

The Bell Food Group as employer

Brand management

27 Strategy architecture Vision and missions Corporate profile Business area strategies Functional strategies

29 Business development 2022 Satisfactory result in a challenging market environment

Overview of 2022 financial year Investments

Bell Switzerland Bell International Eisberg Hilcona

Hügli

Risk report

Engagement at Mosa Meat Responsible fiscal policy Outlook

Corporate governance

1. Group structure and shareholders

1. Organisational chart

1. Capital structure

1. Board of Directors

1. Internal organisation and areas of responsibility
2. Board committees

1. Information channels and control instruments of the Group Executive Board

1. Group Executive Board

1. Co-determinationrights of shareholders

Online:

www.bellfoodgroup.com/report-en

Compensation report

1. Compensation policy and components

1. Compensation for the Board of Directors
2. Compensation for the Group Executive Board
3. Compensation system

1. Report on the audit of the compensation report

Financial reporting

76 Consolidated financial statements of the Bell Food Group Consolidated balance sheet Consolidated income statement Consolidated cash flow statement Consolidated statement of changes in equity Notes to the consolidated financial statements

Report on the audit of the consolidated financial statements

106 Financial statements of Bell Food Group Ltd Balance sheet

Income statement Notes

Appropriation of available earnings and reserves Report on the audit of the financial statements

Contacts and publishing details

116 Contacts

116 Publishing details

Alternative performance indicators

In its annual reports, interim reports and notices to investors and analysts, the Bell Food Group uses alternative performance indicators that are not defined by the Accounting and Reporting Recommendations (Swiss GAAP FER). The alternative performance indicators used by the Bell Food Group are explained in the separate publication «Alternative performance indicators» and are adjusted to the Swiss GAAP FER key figures.

www.bellfoodgroup.com/report-en

Satisfactory result for the 2022 financial year

The Bell Food Group posted an excellent result in a challenging market environment dominated by rising costs and at times seriously reduced product availability throughout the supply chain. At CHF 162.9 million, EBIT is on a par with the previous yearʼs record result. The good performance of the Bell Switzerland and in particular Bell International business areas in the second half of 2022 made a substantial contribution to the result. The currency-adjusted net revenue rose by CHF 266.6 million to CHF 4.3 billion thanks to the implementation of price increases in response to inflation, volume increases in Marchtrenk (AT) and operational progress. However, the cost increases and base effects driven by inflation had a negative impact on margins. At CHF 127.8 million, the annual profit is at the previous yearʼs level, which is encouraging in view of the volatile framework conditions.

162.9million

EBIT 2022 - on previous yearʼs record level

Normalisation of corona situation

The easing of most coronavirus measures at the beginning of the 2022 financial year signalled the start of the expected process of normalisation. While food service sales mostly recov- ered, retail sales declined. On account of its strong mainstay in the retail business, the expectation that the business area Bell Switzerland would be unable to fully duplicate the excellent performance of the previous year was confirmed. The convenience business areas benefited from the recovery of the food service market and strongly improved their sales. Thanks to its good market position, the business area Bell International was able to maintain its margins in spite of contracting retail mar- kets, and once again substantially outstripped the previous yearʼs good performance.

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Higher production costs mostly compensated

The war in Ukraine led to a strong increase in the costs of en- ergy, transport, animal and plant raw materials, feed as well as auxiliary and packaging materials. In addition, the availability of certain raw materials was reduced at times, including plant raw materials, sunflower oil, animal feed and dry raw materials required for convenience production. Prices also fluctuated much more sharply than in previous years. As the hot and dry summer also affected the quality and availability of plant and animal raw materials, both the input costs and complexity increased substantially in almost all areas. It was mostly possible to pass on the increase in production costs by way of price increases, particularly in the Bell Switzerland and Bell International business areas.

Year-on-year comparison of monthly energy costs

In 2022, energy costs rose by around 30 percent on average compared to the previous year.

10.0

8.0

6.0

+30.4 %

4.0

2.0

0.0

2022 2021

Inflation affected consumer behaviour

In addition to production costs, the high inflation also increasingly affected consumer behaviour towards the end of the year. General concerns about a recession and dwindling purchasing power led to a shift in demand. Sales of more expensive brand items and products with sustainable added value declined, while demand increased for lower-priced standard product ranges and own brands. This trend was particularly noticeable for convenience products and had a negative impact on margins.

The Bell Food Groupʼs broadly supported business model has proved its mettle once again in a challenging market environment.

Production facility in Marchtrenk posts strong sales growth

Over the past two years, the production facility in Marchtrenk (AT) substantially increased its utilisation and more than doubled its sales. However, as the new facility has been challenged by unfavourable market conditions since the start of operations because of the corona pandemic and high inflation, sales are still lagging behind the internal expectations. The Bell Food Group is nonetheless convinced that under normal circumstances it can meet its objectives and exploit the potential offered by the German and Austrian convenience market.

Successful bond issue

In May 2022, the Bell Food Group successfully floated a bond of CHF 300 million with an interest rate of 1.55 percent and a term of seven years. The funds were used to refinance a maturing bond of CHF 175 million. The remaining funds will be used to finance, among other things, the strategic investment programme in Switzerland.

Adjustment of the organisational structure

On 1 May, the Bell Food Group adjusted its top-level organisational structure. The business area Convenience was split into the three independent business areas of Eisberg, Hilcona and Hügli. With the current business areas Bell Switzerland and Bell International, the Bell Food Group now has five operational business areas.

New sustainability strategy

The revised sustainability strategy, which is valid until 2026, entered into force in the reporting year. Eight strategic fields of action were defined for the new sustainability strategy. Ambitious objectives were formulated for each field of action. The impacts of the upstream and downstream value chains were also integrated into the strategy for the first time.

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