Creating Volume • High volume & efficient process •Somemills not in corn belt (EU) - Inc. tech (CORNBELT) utilization • Inefficiency of far mills
• WIP stage 1 ready to market •Sell WIP stage 1 = Low margin •> demand for specialty products • Uncertainty of the demands
Preserving Value • Big volume influent supply price •Supply price volatility Hedging of supply shortfall
• • Uncertainty of future prices
• QC & logistics management •Extra costs take up the margin Sal e/utilize byproducts
• • Comp outsourcing of logistics
Adding Value •Good R&D result in sweeteners, •High R&D spending - Global market size (STW): £6.4 - Global new product launches with
texturants and wellness •Uncertain lead R&D to market billion, g: 4.3% to £7.2 billion HIS continue to reduce
Going to Market • Sales mostly at annual pricing •Majority lower margins More sales of high margins
• Volatility of commodity price
•
• Strong market intel •Cost of collecting market intel Use intel: product dev. & sales
• Vast changes due to economic
•
changes
Sustainable Sourcing •Volatility & significance of cost of raw materials Cost efficiency ratio; Fixed Asset Turnover (E)
•
•Capacity, storage & inventory costs and impacts to profit margins ROCE (P)
•
Creating Volume •Utilization of mills out of corn belt vs. overall production cost & transport of raw materials •Fixed Asset Turnover (E)
•Profitability from WIP Stage 1 vs. utilization and profitability of specialty products •Margins (P)
•Ability to increase the technology utilized via CAPEX investment •Gearing ratio (R)
Preserving Value •Shortfall of supply to demand and significance of hedging •Return on hedging (R) Return QC & logistics (E)
•Productivity & cost significance of QC & logistics management •Beaver failure ratio (R)
•Interest cover; interest gearing (R)
Adding Value •R&D to market: standard vs. Tate & Lyle’s. Lead time (E); Return on R&D (E)
•
•Efficiency of sales & marketing and market intel. Cost efficiency ratio(E)
•
PER L
PERFORMANCE EFFICIENCY RISK LIQUIDITY
(5 years) -Cost Efficiency Ratio (5 years) -Gearing (5 years – vs. competitors
-Current
) Asset Ratio (5 years)
years – all & segmental) -Fixed Asset Turnover (5 years) -Interest Cover (5 years) -Acid Test (5 years)
years – vs. competitors 2) -Labour Productivity Ratio (5 years) -Interest Gearing (5 years) -Cash Exhaustion Ratio (5 years)
years – all) -Debtor Age (5 years) -Cost (Operational Gearing) (5 -years
Operating
) Cash Flow to Maturing Obligations (5 ye
rn on R&D (5 years – vs. comp) -Creditor Age (5 years) -Beaver Failure Ratio (5 years-)
-Stock
rn on marketing (5 years – vs. competitors ) Turnover (days) (5 years) -
-Lead time of R&D to market (5 years)
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