Corporate Capabilities Overview Confidential & Proprietary Copyright © 2014 East Balt Bakeries Our Business Approach 2 Our Mission “To be Bakery Industry Leaders in Quality, Service, and Innovation." 3 Our Vision: One East Balt Global Enterprise "Leverage the Strengths of the Global East Balt System to Serve our Local Customers & Communities with Excellence." 4 4 Key Strategies… #2 #1 Customer’s First Choice Win With People #3 #4 Operational Excellence Successful Financial Performance 5 Win With People Everything we do at East Balt begins and ends with great people. • Investing in our people - unleashing their creativity and ensuring their continuous development • Having the right people in the right places • Creating a safe work environment & building a culture of engagement and collaboration. All of this is as important as any other business investment we can make. 6 Customer’s First Choice Current and new customers choose us first because we: • Make the best products & deliver the best service • Are innovative • Build win-win partnerships • Execute with excellence 7 Operational Excellence Our reputation and success depends on “doing things right the first time”. This constant vigilance and commitment to excellence exists in everything we do: • Focusing on continuously improving our processes and eliminating any non-value work • Removing constraints & complexity • Reducing costs & enhancing productivity • Benchmarking & sharing best practices • Collaborating across all East Balt locations • Being open to change 8 Successful Financial Performance Successful financial results and effective deployment of capital is the result of the first three strategies. Financial success allows us the right to continue to grow and invest in our business and people by utilizing: • Quality financial information that supports strategy and performance • Smart resource allocation • Cost monitoring and strong internal controls • Return on capital employed (ROCE) • Delivering on financial targets and meeting customer expectations 9 Our Values… Inspire Trust East Balt is committed to doing business in an ethical, honest, and responsible way. We are committed to building trusting relationships both inside and outside the organization. Trust is earned by delivering on what we promise. Think & Act Like Owners Everyone knows what it means to own a business. You spend money like it’s your own, you make sure you’re getting a return on your investment, you treat people like you would like to be treated. Every East Balt employee is engaged, committed and has a vested interest in our success. Engage the Heart & Mind We have a sincere desire to serve, help others be successful, actively contribute to the business and appreciate the contributions of others. Our leaders are the role model for an engaging work environment where we capture the mental, physical and emotional energy of our employees. 10 Our Operating Principles… • Simplify everything we do and take work OUT of processes • Remove obstacles and complexity Simple • Communicate in plain, simple to understand language • Focus energy on key actions that produce results for our customers and business. • Honest and open in behavior and communications • Share your intentions and assume positive intent Open • Create climate of open sharing and adopt good ideas regardless of the source • Introduce best practices from other parts of the Company or from outside East Balt • Be open to change, listen and challenge • Identify opportunities that cut across business boundaries to provide best customer solutions Integrated • Build collaborative relationships within own team and across other East Balt locations/regions • Consistently seek to combine resources, information and activities to improve value, quality and/or cost effectiveness • Seek alignment and support for common strategies 11 History & Locations 12 History of East Balt While working two shifts a day to get his bakery off the ground, a young baker would spend one of those shifts in his car, meeting with customers and calling on prospects. On one of those daily trips he noticed a new restaurant under construction in a suburb west of Chicago and reached out to the owner to see if they might do business. In just a few short minutes, the two men discovered they shared a common approach to business. They discussed their common belief that restaurant meals made with the highest quality ingredients sold at a reasonable price and delivered with great service would attract families in unheard numbers. Louis Kuchuris, the founder of East Balt bakery, and Ray Kroc, the founder of McDonald’s, shook hands that afternoon to solidify a deal that would change the food landscape while redefining how industrial bakeries operate. Through a wonderful, 50+ year partnership with McDonald’s, the company has expanded into a global enterprise that supports a diverse customer base with a dynamic portfolio of the finest baked products, including buns, bagels, biscuits, English muffins, tortillas and breads. Today, East Balt spans four continents, with 20 bakeries in 12 countries. 13 Worldwide Locations • • Operates 20 bakeries in 12 countries both wholly-owned bakeries and jointly-owned facilities that utilize East Balt production methods and baking expertise. Firmly situated in Europe, Asia, Middle East, Africa and North America to serve customer’s growing business needs. New Bakery in Tianjin, China currently under construction 14 North America • UNITED STATES • • • • Location: Chicago Illinois Established in 1968 Size: 85,000 square feet Products: Big Mac, Regular, Quarter Pounder, Bakery Style Bun, McRib, Angus, English Muffins • Line Capacity: Line 1= 4100 doz/hr buns Line 2= 3700 doz/hr buns Line 3= 1860 doz/hr muffins • • • • Name: Olympic Freightways Location: Chicago Illinois Established in 1968 Size: Tractors = 19 Trailers = 37 • Products: Big Mac, Regular, Quarter Pounder, Bakery Style Bun, McRib, Angus, English Muffins • Direct Store Deliveries Fresh: 766 stores • Distribution Center Deliveries Frozen: 310 stores 15 Europe ITALY • Location: Bomporto • Established in 1994 • Size: 6,000 sq. m & 500 sq.m • Products (Frozen): Regular, Big Mac, Big Tasty, GTA, Tortilla, Hamburger, Hot Dog • Products (Fresh): Mini Burger, Hamb. Sesame, Hamburger, Tortilla, Hot Dogs Sesame • Line Capacity: 3,900 doz/hr Bun Line & 600 doz/hr Tortilla Line UKRAINE • Location: Dnepropetrovsk, Ukraine • Established in 2000 • Size: 2,000 sq. m • Products: Hamburger buns • Line Capacity: 2,200 doz/hr 16 Europe FRANCE – FLEURY • Location: Fleury-Mérogis, France • Established in 1991 • Size: 9 700 sq.m • Products: Buns, Bagel and Ciabatta • Line Capacity:Line#1: 4 350 doz/hour – Line#2: 4410 doz/hour FRANCE – AIX • Location: Aix-en-Provence, France • Established in 2010 • Size: 7 500 sq.m • Products: Buns • Line Capacity: 4200 doz/hour 17 Europe • • • • RUSSIA • Location: Moscow, Russia Established in 2009 Size: 12,000 sq.m Products: Buns, Tortillas, Muffins, Pies, (Liquid) Ice cream toppings • Line Capacity: Buns – 4400 doz/hr Tortillas – 16000/hr Pies – 12500/hr Muffins – 800 doz/hr 18 TURKEY • • • • Location: Gebze, Kocaeli Established in 1998 Size: 3,500 sq. m Products: Big Mac, Cesnili, Hamburger, Irmikli McRoyal, McBeefy, McRib Frozen, McRoyal Fresh, Mini Hot Dog, Buns Regular, Sandvic, Susamli • Line Capacity: 2000 doz/hr Bun Line S. Africa • • CAPE TOWN PRETORIA • • • • • Location: Belleville, Cape Town • Established in 2010 • Size: 4,886 sq. m • Products: Big Mac, BOB, BOB Roll, Brown GI, Low GI Seeded Brown Roll, McFeast, Mini Loaf, Quarter Pounder, Regular, Streetwise, Superior White Bun & Roll, Watersplit, Wheat Germ • Line Capacity: 2800 doz/hr Bun Line Location: Silverton, Pretoria Established in 2000 Size: 3,450 sq. m Products: Big Mac, BOB, BOB Roll, Brown GI, Low GI Seeded Brwn Roll, McFeast, Mini Loaf, Quarter Pounder, Regular, Streetwise, Superior White Bun & Roll, Watersplit, Wheat Germ Bun, Fibre Tortilla, Tortilla, Flatbread • Line Capacity: 3000 doz/hr Bun Line & 900 doz/hr Tortilla Line 19 China SHANGHAI • Location: Shanghai, China • Established in 1995 • Size: 10,000 sq. m • Products: Hamburger Buns, English Muffins • Line Capacity: 3000 doz/hr Bun 1700 doz/hr Muffin BEIJING • Location: Beijing, China • Established in 1994 • Size: 10,754 sq. m • Products: Hamburger Buns • Line Capacity: 5000 doz/hr 20 China SHENYANG • Location: Shenyang, China • Established in 2001 • Size: 8,933 sq. m • Products: Hamburger Buns • Line Capacity: 1500 doz/hr WUHAN • Location: Wuhan, China • Established in 2007 • Size: 2,642 sq. m • Products: Hamburger Buns, Fancy Bread, Dough Improver • Line Capacity: 960 doz/hr Bun 2500 pieces/hr Bread, 200 kg/hr Dough 21 China ZHENGZHOU • Location: Zhengzhou, China • Established in 2008 • Size: 1,416 sq. m • Products: Hamburger Buns • Line Capacity: 800 doz/hr HANGZHOU • Location: Hangzhou, China • Established in 2011 • Size: 7,830 sq. m • Products: Hamburger Buns • Line Capacity: 3,000 doz/hr 22 Asia-Pacific • • JAPAN • • • • • Location: Saitama, Tokyo Established in 1998 Size: 11,330 sq. m Products: Big Mac, HAIGA Roll, Quarter Pounder, Regular, Tatsuta Bun, English Muffins Line Capacity: 2 x 5000 doz/hr Bun Lines & 1500 doz/hr EM Line SOUTH KOREA • Location: Asan City, Chung Nam • Established in 1998 • Size: 6,085 sq. m • Products: Big Mac, Cornmeal Split Bun, Quarter Pounder, Regular, Bushman Bread • Line Capacity: 3000 doz/hr Bun Line 23 Our Products 24 Product Categories Soft Rolls | English Muffins | Bagels | Hard Rolls 25 Soft Rolls • East Balt’s soft rolls come in a variety of sizes, shapes, flavors and toppings. Our soft rolls are designed for applications requiring a softer, moist product to complement the finished sandwich. Oblong Round Multigrain Oatmeal Whole Meal Artisan Dill Topped Funky Roll Herb Bun Pretzel Sage Yellow Split Top • Bundles Onion Plain Potato Sesame Seed Hawaiian 26 Seeded Big Burger Double Decker High Calcium Pub Bun Roast Beef Bun Oat Wheat Caraway Rye Bun (Oat Topping) Seeded Cuban Roll French Dinner Roll Mini Potato Seasoned Mini Hoagie Brown Rye with split Wheat Club Roll Wheat Honey Roll Wheat Grain Oval Brat Bun Yellow Hoagie English Muffins • East Balt produces the traditional English muffin with a slight sourdough flavor. Whole Grain White Dill Sourdough Sourdough • Wheat 100% Whole Wheat Wheat 27 Multigrain Oat Flavor Bagels • East Balt has a wide array of bagel types. These range from the traditional boiled bagel, which is very tough and dense, to the everpopular light and airy bagels. Whole Grain White Plain Bagel Sandwich Bagel • Wheat Wheat-Sesame Seed 28 Sandwich Bagel Yellow Plain Bagel Sandwich Bagel Hard Roles • East Balt’s hard rolls come in a variety of sizes, shapes, flavors and toppings. Our hard rolls are designed for applications requiring more body and can be finished off with a crispy crust. White White Club Roll White Seeded • Wheat Wheat Buns Wheat Roll 29 Whole Grain Wheat Club Roll Wheat Honey Roll Specialty Ciabatta Innovation & Quality 30 Innovation Innovation – Quality – Efficiency - Continuous Improvement Key Focus of our Business Plan 31 Innovation –We believe innovation is an output of creativity. On the product side, East Balt watches market trends closely and is always researching and developing product concepts. Throughout the history of our company investments have been made that ensure East Balt remains ahead of the trend. –We believe innovation creates value. Our equipment and systems are upgraded regularly, raising efficiencies and enhancing finished product quality. Many of today’s innovations are the direct result of close interaction between East Balt and our suppliers. 32 Commitment to Quality • We strive for perfection and food safety in everything we do, with an overarching goal of exceeding customer expectations and regulatory compliance. • Our quality foundation is based on sound fundamental systems, like our formal HACCP (Hazard Analysis Critical Control Point) principles and contamination prevention systems. This foundation, coupled with formal pre-requisite procedures, allows us to consistently achieve high levels of product quality while continuously driving toward the highest possible food safety initiatives in the industry. • Quality is build into each employee’s daily activities with confirmation of systems compliance provided by formal quarterly third-party/independent inspections at each site, which complements our formal monthly internal inspections. 33 Commitment to Quality • World-class level certifications in all parts of the globe help East Balt continuously strive for system excellence. Examples include Baker’s Quality Seal (BQS) certification in the Unites States; independent plant security inspections; BRC certification in one of our plants in Europe; and formal HACCP certification at all sites. • To ensure product quality, most EB sites have vision systems that are capable of verifying product attributes and variables to ensure consistent delivery of finished product. • We provide our employees with the training and tools necessary to continuously achieve above the standard while providing our customers with simply the best quality products and service in the industry. 34 Customers & Testimonials 35 What Our Customers Are Saying… “East Balt provided us with ideas and input that allows us to make systematic improvements to our business.” -Susan Forsell, McDonald’s Quality Assurance “It is our great pleasure to work with East Balt Korea on Bushman bread, a product of great acclaim in our Outback system. East Balt Korea has shown the best quality and highest good safety levels and their flexibility to react and support our operation gives us great confidence in the relationship. We are making each other successful.” -Charlie Shin, Purchasing Director, Outback Steak House Korea “East Balt South Africa has been responsible for a significant improvement in our bread layer and their support, professionalism and customer service has assisted KFC to increase sales in this very important region. The East Balt team are professional, worldclass bakers.” -Andre Strydom, Purchasing Director, KFC South Africa 36
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