Barry Callebaut AG · SIX:BARN
Barry Callebaut — CAGE – Consumer Analyst Group Europe, London 2012
29 slides from Barry Callebaut's conference presentation, Mar 19, 2012
Slide 1: Barry Callebaut – CAGE London
Barry Callebaut CAGE – Consumer Analyst Group Europe London, March 19th 2012
Slide 2: Barry Callebaut at a glance
Barry Callebaut at a glance FY 2010/11 X World leader in high-quality cocoa Sales volume =1,296,438 tonnes and chocolate products and outsourcing/ strategic partner of Asia- choice Pacific Global 4% X World’s largest supplier of Gourmet Sourcing & Cocoa & Specialties chocolate for artisanal 20% cust
Slide 3: Present in all stages of the industrial chocolate value chain
Barry Callebaut is present in all stages of the industrial chocolate value chain Cocoa Cocoa beans Plantations 80% Cocoa liquor ~54% ~46% Cocoa powder Cocoa butter Barry Callebaut + Sugar, Milk, + Sugar, Milk, + Sugar, Milk, core activity others fats, others others Powder mixes Compound/Fillings Cho
Slide 4: BC market leader in the open market
Expansion BC market leader in the open market Global Industrial Chocolate market in 2010/11 = 6,000,000 tonnes* Open market Integrated market Competitors Big 4 chocolate Others confectionary Others players 22% 40% 20% 40% 2% 3% 49% 51% 8% 80% 11% 14% *BC estimates March 2012 Barry Callebaut – CAGE C
Slide 5: Robust business model
Robust business model Barry Callebaut business model 100g chocolate tablet contains: Price List Cocoa Products Gourmet r at market price business 11% Cocoa butter 9% Milk powder Cocoa Products Sugar on cost plus 11% Other Food Manufacturers 69% 80% Cost Plus X Raw materials represent about 80% of op
Slide 6: Our Strategy
Our Strategy Vision “Heart and engine of the chocolate industry” Expansion Innovation Strategic Sustainable, pillars profitable growth Cost leadership New Sustainable Cocoa March 2012 Barry Callebaut – CAGE Conference London 6
Slide 7: “Expansion” in its three dimensions
Expansion “Expansion” in its three dimensions • Drive consolidation and grow profitably in mature markets Geography • Achieve full potential in recently entered emerging markets • Further expand in new emerging markets • Strengthen our current partnerships Outsourcing … • Implement recently signed c
Slide 8: Our global footprint – around 40 factories in 4 continents
Expansion Our global footprint- around 40 factories in 4 continents Chekhov, Russia Thimister, Belgium Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK Kagerod, Sweden Chester, UK Pennsauken, NJ, US St. Hyacint
Slide 9: Asia-Pacific strategy: grow faster than the market
Emerging markets: Asia-Pacific strategy Expansion Ambition to grow faster than the market, while maintaining profitability Key Facts Key priorities Grow the export markets from SEA factories Japan China 1 (Malaysia and Singapore) Myanmar Laos India ThailandVietnam Philippines Cambodia Brunei Malaysi
Slide 10: Outsourcing and Strategic Partner of choice
Expansion Outsourcing and Strategic Partner of choice 2006-07 Nestlé Cadbury Hershey Morinaga (February 2007) Schweppes (April 2007) (September 2007) (June 2007) 2010-11 Kraft Foods Green Mountain Hershey Extension Chocolates Turín Baronie Group (September 2010) Coffee Roasters (May 2011) (June 2011
Slide 11: Gourmet actions to accelerate Gourmet growth
Expansion Gourmet 6 actions to accelerate Gourmet growth Gourmet global market and BC presence Total= >CHF 3bn Chocolate products Adjacent products CHF ~2bn sales CHF >1bn sales 100% 80 > 30 competitors > 20 competitors >25 Adjacent >10 > 100 60 competitors competitors products: competitors Nut base
Slide 12: Focus on growing emerging markets and long-term partnerships
Expansion Focus on the growing emerging markets as well as on long-term agreements/partnerships % of total consolidated sales volume Emerging 23% CAGR +19.3% markets 22% 16% 20% Long-term CAGR +78.8% 15% 11% 16% agreements / 7% Partnerships 10% 2% Mature CAGR +0.8% markets 83% 77% 70% 67% 61% 2006-0
Slide 13: 72% of sales volume with new products developed in past 5 years
Innovation Innovation 72% of sales volume with new products developed in past 5 years X R&D X Pro-active innovation: new product development, fundamental research on cocoa/chocolate, clinical studies, farmer productivity & quality X Applied R&D: renovate products/recipes, apply new technologies to f
Slide 14: Supporting growth while staying cost leader
Cost Leadership Cost Leadership Supporting growth while staying cost leader Cost per tonne evolution 108% 105% 100% 98% 92% 2006/07 2007/08 2008/09 2009/10 2010/11 Capacity Utilization X Continuous improvement: One+ Results: 4 pilot sites yearly savings ~CHF 7 million 92% 91% 86% X Flow and footprin
Slide 15: We need more, sustainable cocoa in the future
Sustainable Cocoa Sustainable Cocoa Sustainable Cocoa We need more, sustainable cocoa in the future X Consumption outpaces bean production X Competitive crops more profitable Excess return of Rubber vs. Cocoa farming in Ivory Coast per Ha 4'000 3'800 World crop (net) 2'200 3'600 World grindings 3'40
Slide 16: Yield & quality initiative for responsibly grown cocoa
Sustainable Cocoa Sustainable Cocoa Sustainable Cocoa Yield & quality initiative for more quality-grade, responsibly grown cocoa 300,000 tonnes of additional cocoa beans by 2020 Farmer Practices Farmer Education Farmer Health • Plantation yield & quality • Cocoa curriculum • Water wells • Model farm
Slide 17: Employees – Structurally developing our people
Employees – Structurally developing our people Employer Branding Attractive presence in internet, strategic partnerships with top universities Recruitment & Graduate Trainee Program General recruitment + Graduate Trainee Program PMDP & Engagement Personal targets aligned with BC Strategy, feedback c
Slide 18: 7% average annual volume growth over the last 10 years
Based on our strategy we achieved a 7% average annual volume growth over the last 10 years… Stollwerck divestment 1,403 1,317 CAGR+7% Brach’s divestment 1,214 1,166 1,130 1,052 1,050 1,011 891 761 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Consumer Divestment Vol
Slide 19: Higher cash flow generation and return to shareholders
… which translated into higher cash flow generation and return to shareholders 15.5 CAGR +17% 14.0 12.5 11.5 11.5 10.5 493 470 434 446 8.0 407 7.8 6.9 7.0 348 313 252 228 116 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Cash Flow as 4% 6% 6% 8% 9% 10% 9% 9% 10% 10%
Slide 20: Financial Guidance
Outlook Financial Guidance X Four-year growth targets for 2009/10 –2012/13 X Annual growth targets on average* for 2009/10 through 2012/13: Volumes: 6-8% EBIT: at least in line with volume growth * Our view for the 2009-2013 period reflects current economic forecasts for the markets we operate i
Slide 21: Share performance vs. peers and indices
Share performance vs. peers and indices 10 Years - CAGR (Feb 2002 – Feb 2012) 1 Year performance (Feb 2002 – Feb 2012) Barry Callebaut 17.2% Barry Callebaut 19.8% Eurostoxx F&B 13% Lindt 12.3% Lindt 4.9% ADM 8.5% -3% SPI Givaudan 5.5% -7.1% Givaudan SMIM 4.7% -12.2% ADM Eurostoxx F&B 4.2% -14.0% SMI
Slide 22: Reasons to invest in Barry Callebaut
10 Reasons to invest in Barry Callebaut World leader in high-quality cocoa and chocolate products Cost Leadership along the entire value chain with a continuous improvement structure Leader and growing presence in emerging markets World’s largest supplier of Gourmet & Specialties chocolate for artis
Slide 23: Appendix
Appendix March 2012 Barry Callebaut – CAGE Conference London 23
Slide 24: Our product offering focuses on cocoa and chocolate
Our product offering focuses on cocoa and chocolate Food Manufacturers Gourmet & Specialties Cocoa Products • Standard chocolate • Chocolate • Standard Cocoa Products • Cocoa Products (cocoa powder, butter, • Specialties • Coating liquor) • Certified • Fillings • Probiotic • Low fat and high fat • R
Slide 25: West Africa is the world's largest cocoa producer
West Africa is the world’s largest cocoa producer – BC sources locally Total world harvest (10/11): 4,195k MT X 70% of total cocoa beans come others 11% from West Africa Ecuador 3% Ivory Coast* Brazil* 35% X BC processed ~540,000 tonnes 5% of cocoa beans or 13% of total Cameroon* world harvest 5% X
Slide 26: Investments support the growth of our business
CAPEX development Investments support the growth of our business in mCHF Additional growth IT Upgrade / efficiency gains existing sites Maintenance 250 CAPEX as % of sales 174 170 153 144 145 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 PLAN March 2012 Barry Callebaut – CAGE Conference London 26
Slide 27: Revenue by currency
Revenue by currency FY 2010/11 Sales Revenue Others* 33% EUR 40% CHF 1% GBP 9% USD 17% * Others include: Canadian Dollar, Mexican Peso, Brazilian Real, Japanese Yen, Russian Ruble, Australian Dollar, Chinese Yuan, Malaysian Ringgit, Polish Zloty, Czech koruna, Swedish Krona, Indonesian, Rupiah ,etc
Slide 28: Solid and profitable growth
Key Figures 2010/11 – from continuing operations Solid and profitable growth Change in % Change in % FY FY In local 2010/11 2009/10 currencies (restated) Sales volume [in tonnes] 7.2% 1'296'438 1'209'654 Sales revenue [CHF m] 13.3% 0.7% 4'554.4 4'524.5 CHF per tonne 5.7% -6.1% 3'513 3'740 Gross prof
Slide 29: Solid Balance Sheet with improvement of all key ratios
Balance Sheet Solid Balance Sheet with improvement of all key ratios Change Aug 11 Aug 10 in % Total Assets [CHF m] -8.6% 3'263.1 3'570.8 Net Working Capital [CHF m] -8.0% 888.1 964.9 Non-Current Assets [CHF m] -14.0% 1'208.4 1'405.8 Net Debt [CHF m] -9.3% 789.8 870.8 Shareholders' Equity [CHF m] -6
Barry Callebaut — CAGE – Consumer Analyst Group Europe, London 2012 on 6ix