Barry Callebaut AG · SIX:BARN
Barry Callebaut — FY2018/19 Earnings Presentation
32 slides from Barry Callebaut's earnings presentation, Nov 6, 2019
Slide 1: Full-Year Results 2018/19
Full-Year Results 2018/19 Analyst and Media Conference November 6, 2019
Slide 2: Cautionary note
Cautionary note Certain statements in this presentation regarding the business of Barry Callebaut are of forward-looking nature and therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘believe’,
Slide 3: Agenda
AGENDA Highlights Full-Year 2018/19 Antoine de Saint-Affrique, CEO Financial Review Full-Year 2018/19 Remco Steenbergen, CFO Strategy & Outlook Antoine de Saint-Affrique, CEO Questions & Answers CEO and CFO
Slide 4: Highlights
HIGHLIGHTS Full-Year Results 2018/19 Antoine de Saint-Affrique, CEO
Slide 5: Good momentum continues
Highlights Full-Year Results 2018/19 Good momentum continues Sales volume up +5.1%, well above market growth of +1.8%1 Sales revenue of CHF 7.3 bn, up +7.8% in local currencies (+5.2% in CHF) Operating profit (EBIT) up +11.9% in local currencies (+8.5% in CHF) Net profit2 up +14.2% in local currenci
Slide 6: Consistent execution of 'smart growth', mid-term guidance achieved
Mid-term guidance 2015/16 – 2018/19 Consistent execution of ‘smart growth’, mid-term guidance achieved1 Volume growth +4.5% on average Key growth drivers on average: Sustainable growth - Emerging Markets +7.7%, doubling its volume share - Outsourcing +6.1%, adding >150,000 tonnes - Gourmet & Special
Slide 7: Healthy growth continues
Highlights Full-Year Results 2018/19 Healthy growth continues Volume growth vs. prior year Cocoa FY 2017/18 FY 2018/19 +10.6% Chocolate +5.1% +6.3% +10.6% +8.0% +8.1% +7.4% +4.8% +5.3% +4.8% +4.7% +1.1% +3.0% +2.3% +10.7% +3.1% +8.1% +9.0% +1.7% +5.9% +5.7% +5.5% +4.3% +2.9% -0.9% -2.4% Q1 17/18 Q2
Slide 8: Growth continues to be broad based
Highlights Full-Year Results 2018/19 Growth continues to be broad based % of total % volume growth Group volume vs prior year 35% +9.7% Emerging excl. cocoa Markets +12.7% Key growth drivers 34% Outsourcing crucial to Long-term continuously +5.2% Partnerships outperform the market 12% +2.8% Gourmet
Slide 9: Delivering on all strategic pillars
Highlights Full-Year Result 2018/19 Delivering on all strategic pillars S&P upgrade to Investment grade Outsourcing Strategic Completion Successful Expansion CHOCOLATE Announcement Action Plan Agreement with Partnership of Inforum placement of cocoa processing ACADEMYTM in new chocolate Cocoa and Bu
Slide 10: The power of Innovation
The power of Innovation Video Magnum Ruby in Turkey 10 FY 2018/19 Analyst & Media Conference
Slide 11: Financial Review
FINANCIAL REVIEW Full-Year Results 2018/19 Remco Steenbergen, CFO
Slide 12: Consistently delivering profitable growth
Financial review - Key figures Consistently delivering profitable growth % vs prior year % vs prior year Group performance (in CHF millions) FY 2018/19 in CHF in local currencies Sales volume (in tonnes) 2,139,758 5.1% n/a Sales revenue 7,309.0 5.2% 7.8% Gross profit 1,188.4 2.7% 5.1% EBIT Total 601
Slide 13: All Regions contributed to volume growth and profitability
Financial review – Key Performance Indicators by Region All Regions contributed to volume growth and profitability EMEA Group Sales Volume: Americas 981,231 2,139,758 1’046’695 573,413 46% tonnes 27% APAC Global Cocoa 118,548 466,566 22% 5% EMEA Americas Asia Pacific Global Cocoa FY volume +6.1% +4.
Slide 14: Gross profit up +5.1% in local currencies, driven by good volume growth and mix
Gross Profit Gross profit up +5.1% in local currencies, driven by good volume growth and mix effects In CHF millions +5.1% +10 +33 +59 1,216 -43 1,188 -28 1,157 Gross Profit Volume Mix effects Cocoa Additional Gross Profit FX impact Gross Profit FY 2017/18 effects business costs FY 2018/19 FY 2018/1
Slide 15: Combined cocoa ratio remains at a healthy level
Cocoa processing profitability Combined cocoa ratio remains at a healthy level European combined ratio – 6-month forward ratio 4.00 Combined 3.50 Ratio 3.5 3.00 Butter 2.50 ratio 2.00 1.50 Powder 1.00 ratio 0.50 0.00 Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug 19
Slide 16: Strong increase in Operating profit by +11.9% in local currencies
EBIT bridge Strong increase in Operating profit by +11.9% in local currencies In CHF millions +11.9% +7 620 + 59 601 -19 554 EBIT Additional Additional EBIT FX impact EBIT FY 2017/18 Gross Profit SG&A, Other FY 2018/19 FY 2018/19 before FX 16 FY 2018/19 Analyst & Media Conference
Slide 17: Net Profit up +14.2% in local currencies, based on good profitability
EBITDA to Net Profit Full-Year 2018/19 Net Profit up +14.2% in local currencies, based on good profitability In CHF millions 775 Effective tax 601 rate 18.6% vs 18.2% in PY 1 -174 +14.2% -148 +26 +13 408 369 357 -84 EBITDA Depr. EBIT Financial Income Net profit Net effect FX Impact Net profit Net pr
Slide 18: Ongoing volatility
Raw material prices Ongoing volatility 200% Increase FY 2018/19 (average) 150% Milk powder +28.9% 100% Cocoa beans +4.5% Sugar World -3.7% Sugar EU +16.8% 50% 0% Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug 19 18 FY 2018/19 Analyst & Media Conference
Slide 19: Good Free cash flow generation, while investing in structural improvements
FY 2018/19 Free cash flow Good Free cash flow generation, while investing in structural improvements for future growth In CHF millions +6.4% +33 775 728 -234 +33 323 290 257 -280 -5 -66 EBITDA EBITDA Change Interest CAPEX Others FCF Early FCF RMI FCF Aug 18 Aug 19 Working paid and Aug 19 bond Aug 19
Slide 20: Net debt further decreased
Financial Review Net debt further decreased In CHF millions -104 +154 +335 1,409 +51 1,305 -290 -19 1,074 -4 612 616 -693 Net debt IFRS 15 Net debt Dividends Free Acquisitions FX Net debt RMI Adj. Net Adj. Net Aug 18 adjustment Pro- & cash Impact Aug 19 Beans debt debt forma Treasury flow & Other Au
Slide 21: Strong Balance sheet with further improvement in key ratios
Financial key figures Strong Balance sheet with further improvement in key ratios Aug 18 Aug 18 (in CHF millions) Aug 19 Pro forma1 Reported Total assets 6,508.1 6,169.0 5,832.0 Net working capital 1,363.2 1,403.4 1,074.4 Non-current assets 2,650.0 2,506.5 2,505.5 Net debt 1,304.7 1,409.3 1’074.3 Ad
Slide 22: Proposed payout of CHF 26.00 per share, an increase of +8.3%
Dividend Proposed payout of CHF 26.00 per share, an increase of +8.3% 33% 33% 39% 39% 37% 39% Proposed dividend Payout ratio 357 369 CHF 26.00 per share, +8.3% 281 255 240 219 Payout 39% of Net profit Net profit in CHF millions 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 26.00* 24.00 Timetable f
Slide 23: Changes in the Board
Board of Directors Changes in the Board The following board members will not stand for reelection: Jakob Baer Board member since 2010, Vice Chairman of the Board Chairman of the Audit, Finance, Risk, Quality & Compliance Committee (AFRQCC) Juergen Steinemann Board member since 2014 Member of the Nom
Slide 24: Strategy & Outlook
STRATEGY & OUTLOOK Full-Year Results 2018/19 Antoine de Saint-Affrique, CEO
Slide 25: Consistent long-term strategy – evolving execution
Strategy Consistent long-term strategy – evolving execution “Heart and engine of the Vision chocolate and cocoa industry” Sustainable growth Expansion Margin accretive growth 4 strategic Innovation ‘smart Accelerated growth in pillars Gourmet, Specialties and growth’ Emerging Markets Cost Leadership
Slide 26: Drive momentum, drive value creation
Strategy Drive momentum, drive value creation Expansion Innovation Expanding in Emerging Markets Riding the trends • Integration of Inforum on track • Extended dairy-free chocolate range • New chocolate factories in Serbia and • New sugar-reduced solutions India Innovating on the core Strengthening
Slide 27: 'Cacaofruit' Experience
‘Cacaofruit’ Experience Video Launch Event San Francisco 27 FY 2018/19 Analyst & Media Conference
Slide 28: Drive momentum, drive value creation
Strategy Drive momentum, drive value creation Cost Leadership Sustainability Strengthening our financing Leading a movement • Through the issuance of a Schuldschein- • No. 1 ranking in Sustainalytics assess- darlehen ment of 178 food companies • Among leading 6% companies on Streamlining and further
Slide 29: Adding value at every step
A transformation journey Adding value at every step Value added Offering 29 FY 2018/19 Analyst & Media Conference
Slide 30: The strength of our 12,000 people
Talents & Team The strength of our 12,000 people Value driven Passion Entrepreneurship Customer focus Integrity Team spirit Roots and re-invention Strong roots and culture Content driven & meritocratic Curiosity and freedom to experiment Further building our strength Diversity Learning & development
Slide 31: Mid-term guidance
Outlook Mid-term guidance Confident to deliver on renewed guidance Committed to pursuing successful ‘smart growth’ strategy Good growth momentum Strong innovation portfolio Discipline in execution Strong team Mid-term guidance 2019/20-2021/22, on average per annum: Volume growth of +4-6% EBIT growth
Slide 32: Thank you!
Thank you!