Tate & Lyle PLC · LSE:TATE
Tate & Lyle — Shareholder Meeting (July 2006)
24 slides from Tate & Lyle's shareholder meeting presentation, Jul 19, 2006
Slide 1: Tate & Lyle Annual General Meeting 19 July 2006
Tate & Lyle Annual General Meeting 19 July 2006 Iain Ferguson, Chief Executive Good morning ladies and gentlemen. I am pleased to have the opportunity this morning to update you on the performance of our company and about our strategy for the future. The profit figures I quote in this presentation,
Slide 2: Strategic Vision
Strategic Vision PURPOSE To create the world’s leading renewable ingredients business 2 WE WILL CONTINUE TO GROW THE BUSINESS WHILST MAINTAINING OUR FOCUS ON EFFICIENCY Our purpose is to create the world’s leading renewable ingredients business. We produce a distinctive range of both food and indust
Slide 3: Key Results
Key Results Year to 31 March 2006 Profit1 £328m Up 18% SPLENDA® Sucralose2 Profit1 £68m Up 48% Profit1 £161m Up 22% from 2005 Total Value Added Target to grow 30% in 06/07 Group margins 8.8% Up 50bp Proposed Total Dividend 20.0p Up 3% 1 Before interest, exceptional items and amortisation 2 SPLENDA®
Slide 4: Share Price Performance Since 2005 AGM
Share Price Performance Since 2005 AGM 28 July 2005 to 17 July 2006 Tate & Lyle Closing Share Price vs. FTSE 100 Index - 40% 28 July 2005 to 17 July 2006 35% 30% 25% 20% % change 15% 10% 5% 0% Tate & Lyle -5% FTSE 100 -10% 5 5 6 6 6 5 5 5 6 6 5 6 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 ul ov an un ec pr
Slide 5: Tate & Lyle Today
Tate & Lyle Today How We are Organised and Report Food & Food & Sucralose Sugars, Sugars, Industrial Industrial Americas Europe Ingredients, Ingredients, & Asia (TALSE) Americas Europe (TALSA) (TALFIIA) (TALFIIE) Ingredients, America Ingredients, SPLENDA® Canada London Citric Acid Europe Sucralose M
Slide 6: Locations of Principal Manufacturing Facilities
Locations of Principal Manufacturing Facilities 6 The green highlighted areas of this map of the world show the geographies in which Tate & Lyle has principal manufacturing plants. We currently operate 65 production facilities in 29 countries. You can see that we principally operate in the Americas
Slide 7: Selected European Locations
Selected European Locations Food ingredients - Nesle, France Silvertown sugar refinery - London 7 Food ingredients - Cesalpinia, Italy We can’t show you pictures of all our European plants, so here is a selection for you. From top to bottom, you can see a picture of our starch facility in Nesle, Fra
Slide 8: Selected American locations
Selected American locations Redpath sugar refinery - Canada Food Ingredients - Decatur, Illinois 8 Sucralose – McIntosh, Alabama Moving onto our American locations, on the top right is a picture of Redpath, our sugar refining business in Toronto. The picture below is of Decatur, Illinois, where our
Slide 9: Contribution to Profitability
Contribution to Profitability FY 2006 2006 Profit* Growth 18% to £328m Split by Division £m Split by Category £m 62 (19%) 93 125 106 (28%) 27 (38%) (32%) (8%) Total Value Added 46 £161m (14%) 46 68 (14%) (49%) 68 (21%) (21%) 15 (5%) TALFIIA Sucralose Core Value Added Sucralose TALFIIE TALSAA Consume
Slide 10: How We Are Tackling The Growth Agenda
How We Are Tackling The Growth Agenda SPLENDA® Sucralose Bio-PDOTM CUSTOMER FOCUS Fort Dodge Loudon & Sagamore Expansions Bolt-on Acquisitions 10 Our approach today is customer-centric. Everything we do starts with the consumer and we have commissioned bespoke international research to generate insi
Slide 11: SPLENDA Sucralose Capacity Expansions on Track
SPLENDA® Sucralose Capacity Expansions on Track y y acit acit ap ap ialc ialc nit nit 1 xi 1 xi dds dds A A McIntosh Singapore • First phase debottlenecking • Due to be mechanically completed • Second phase commissioning now by January • Training of Singapore employees largely complete • On track In
Slide 12: SPLENDA Sucralose New Product Launches
SPLENDA® Sucralose New Product Launches Beverages Pharma Cookies Cereals Ice creams Baked goods 12 Despite capacity constraints during the past year, we have seen a number of exciting new product launches across all categories; food, beverage, and pharmaceutical. We now have a short video to show yo
Slide 13: Video of Sucralose facility in McIntosh, Alabama
SPLENDA® Sucralose A video of our Sucralose facility in McIntosh, Alabama was shown here 13 Moving on to our other growth projects and investments. 2006 AGM – Iain Ferguson Presentation 13
Slide 14: Investment in Value Added Growth
Investment in Value Added Growth Investment in Fort Dodge, Loudon and Sagamore £250 million Loudon Sagamore Bio-PDO™ JV New capacity New capacity operational in October operational January Now in commissioning 2007 2007 phase Hycail Custom Ingredients Cesalpinia Acquisition of Hycail Integrated well
Slide 15: £140 million investment in Fort Dodge, Iowa
£140 million investment in Fort Dodge, Iowa Continuing investment for growth • First phase capacity of 150,000 bushels of corn per day expected to be complete by March 2009 • Proprietary technology, lower cost, better yields, reduced energy consumption Houlton, ME Stanfield, OR • Expected to cover c
Slide 16: £140 million Investment in Fort Dodge, Iowa
£140 million Investment in Fort Dodge, Iowa Continuing Investment for Growth 16 Here is a picture of where the new plant will be built, right in the heart of the corn belt. True to our doctrine, we will take a renewable resource, i.e. corn and produce products which provide functionality to our cust
Slide 17: The Corn Process
The Corn Process A video of the corn wet-milling process was shown here 17 I hope that has given you a clearer understanding of the corn milling process. Let me now sum up how we operate throughout the whole business… 2006 AGM – Iain Ferguson Presentation 17
Slide 18: Delivering on Strategy: Customer Understanding
Delivering on Strategy Customer Understanding Drives All We Do Diamond Model Serve our customers 18 Delivering customer service is at the core of everything we do. Tate & Lyle’s strategy is to be the partner of choice in our customers’ innovation processes. This involves building a better understand
Slide 19: Delivering on Strategy: Operating Safely and Efficiently
Delivering on Strategy Operating Safely and Efficiently is at the Heart of Our Business Serve our customers Operate safely and efficiently Margin Growth PBITEA/Sales Margin 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 FY01 FY02 FY03 FY04 FY05 FY06 19 Operational efficiency and safety have always been
Slide 20: Delivering on Strategy: Partnerships and Acquisitions
Delivering on Strategy We are Growing the Business through Partnerships and Acquisitions Serve our customers Operate safely and efficiently Partnerships & acquisitions 20 We are growing the business through partnerships (for example with DuPont and McNeil Nutritionals) and through acquisitions of sm
Slide 21: Delivering on Strategy: Technology and People
Delivering on Strategy We are Committed to Investing in Technology and People Serve our customers Operate safely and efficiently Partnerships & acquisitions Invest in technology and people 21 We are continuing to invest in technology and our people. We are increasing our research and development cap
Slide 22: Delivering on Strategy: Value Added Growth
Delivering on Strategy Only Value Added Growth Can Truly Drive the Business Forward Total Value Added Profit* Growth FY2005/2006 +22% Serve our customers FY2006/2007 +30% target Operate safely and efficiently Partnerships & acquisitions Invest in technology and people VALUE ADDED GROWTH 22 *Before i
Slide 23: Outlook Statement
Outlook Statement • Trading for FY 2007 has started strongly • First quarter results well ahead of corresponding period in the prior year • Continuation of strong performance from Food & Industrial Ingredients Americas and from sugar trading • All of our value added expansions remain on track • Targ
Slide 24: Tate & Lyle Annual General Meeting 19 July 2006
Tate & Lyle Annual General Meeting 19 July 2006 Iain Ferguson, Chief Executive 2006 AGM – Iain Ferguson Presentation 24