Barry Callebaut AG · SIX:BARN
Barry Callebaut — FY2019/20 Earnings Presentation
33 slides from Barry Callebaut's earnings presentation, Nov 11, 2020
Slide 1: Full-Year Results 2019/20 Media & Analyst Conference
Full-Year Results 2019/20 Media & Analyst Conference November 11, 2020
Slide 2: Cautionary note
Cautionary note Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘bel
Slide 3: Agenda
AGENDA Highlights Full-Year 2019/20 Antoine de Saint-Affrique, CEO Financial Review Full-Year 2019/20 Remco Steenbergen, CFO Strategy & Outlook Antoine de Saint-Affrique, CEO Questions & Answers Antoine de Saint-Affrique, CEO Remco Steenbergen, CFO 3 FY 2019/20 Media and Analyst Conference
Slide 4: Highlights Full-Year Results 2019/20
HIGHLIGHTS Full-Year Results 2019/20 Antoine de Saint-Affrique, CEO 4 FY 2019/20 Media and Analyst Conference
Slide 5: Change in the Executive Committee
Governance Change in the Executive Committee Remco Steenbergen leaving Barry Callebaut Remco Steenbergen will leave Barry Callebaut as of December 31, 2020 to become Chief Financial Officer of the Lufthansa Group. He has successfully accomplished his mission to improve processes and systems, the str
Slide 6: Change in the Board of Directors
Governance Change in the Board of Directors The following board member will not stand for reelection: Suja Chandrasekaran Board member since 2018 Member of the Nomination & Compensation Committee All other Board members will stand for reelection for a term of office of one year. Proposed as new memb
Slide 7: Solid results in unprecedented times, confident on mid-term guidance
Highlights Full-Year Results 2019/20 Solid results in unprecedented times, confident on mid-term guidance Sales volume down -2.0%, progressive recovery in fourth quarter Sales revenues of CHF 6.9 billion, down -0.4% in local currencies (-5.7% in CHF) Operating profit (EBIT) recurring1 of CHF 491.0 m
Slide 8: COVID-19 management: early adoption of precautionary measures focusing on 3 pillars
Highlights Full-Year Results 2019/20 COVID-19 management: early adoption of precautionary measures focusing on 3 pillars Enormous gratitude to all Barry Callebaut employees for pivoting and rethinking Care: Protect the health of employees business as usual Further strengthened hygiene protocols Soci
Slide 9: Progressive volume recovery in fourth quarter
Highlights Full-Year Results 2019/20 Progressive volume recovery in fourth quarter FY 2018/19 FY 2019/20 Cocoa +5.1% -2.0% Chocolate +10.6% +8.2% +10.6% +5.3% +10.2% +3.0% +3.1% +2.5% +1.7% +10.7% +7.7% +2.5% +4.3% +5.9% -14.3% -4.3% +2.9% +2.5% -0.9% -5.5% -2.4% -14.6% -3.9% -14.1% Q1 18/19 Q2 18/1
Slide 10: Gradual recovery of Key growth drivers
Highlights Full-Year Results 2019/20 Gradual recovery of Key growth drivers % of total % volume growth Group volume vs. prior year 36% +0.0% Emerging excl. Cocoa: Markets +0.5% Key growth drivers 35% Outsourcing crucial to -0.7% Long-term continuously Partnerships outperform the market 10% Gourmet &
Slide 11: Continued expansion and drive for new opportunities
Highlights Full-Year Results 2019/20 Continued expansion and drive for new opportunities September 2019 February 2020 ‘Cacaofruit Experience’ and November 2019 WholeFruit Chocolate introduced 100% dairy-free ‘M_lk January 2020 Chocolate’ of ‘Plant Craft’ Barry Callebaut leading range introduced amon
Slide 12: Strong Innovation
Highlights Full-Year Results 2019/20 Strong Innovation Riding the trends Ruby continues to establish its presence as 4th type of chocolate Plant-based - at the forefront of dairy-free and vegan trends with 100% dairy-free M_lk Chocolate and nut-based products Further exploit the richness of the Caca
Slide 13: Your finest Belgian chocolate is now made from traceable cocoa beans
YOUR FINEST BELGIAN CHOCOLATE IS NOW MADE FROM TRACEABLE COCOA BEANS 13 FY 2019/20 Media and Analyst Conference
Slide 14: Financial Review
FINANCIAL REVIEW Full-Year Results 2019/20 Remco Steenbergen, CFO 14 FY 2019/20 Media and Analyst Conference
Slide 15: Resilient volume and strong Free cash flow generation
Financial review – Key figures Resilient volume and strong Free cash flow generation Change % Pro-forma1 Group performance (in CHF million) FY 2019/20 in local currencies in CHF Sales volume (in tonnes) 2,095,982 n/a -2.0% Sales revenue 6,893.1 -0.4% -5.7% Gross profit 1,063.7 -6.8% -11.3% EBIT repo
Slide 16: Resilient performance across Regions
Financial review – Key performance indicators by Region Resilient performance across Regions EMEA Group Sales volume: Americas 945,640 2,095,982 565,650 45% tonnes 27% Global Cocoa APAC 457,386 127,306 22% 6% EMEA Americas Asia Pacific Global Cocoa FY volume -3.6% -1.4% +7.4% -2.0% growth EBIT growt
Slide 17: COVID-19 impact on volume and mix
Gross profit COVID-19 impact on volume and mix In CHF millions -6.8% 1,199 -25 0 1,117 -57 1,064 -53 Gross Profit FY Volume Mix (Incl. COVID) Cocoa Gross Profit FX Gross Profit 2018/19 FY 2019/20, in LC FY 2019/20 pro-forma IFRS16 17 FY 2019/20 Media and Analyst Conference
Slide 18: Cocoa Combined ratio development
Cocoa processing profitability Cocoa Combined ratio development European combined ratio – 6-month forward ratio 4.00 Directionally right… Combined Shows general high level 3.50 ratio 3.6x industry direction, assuming many variables are fixed. 3.00 However… Butter ratio 2.50 Many variables are not fi
Slide 19: Operating profit (EBIT) recurring impacted by adverse mix
EBIT bridge Operating profit (EBIT) recurring impacted by adverse mix In CHF million -13.8% 603 520 -82 -1 -8 483 -29 EBIT FY 2018/19 Gross Profit SG&A, Scope EBIT Factory FX EBIT pro-forma IFRS16 FY 2019/20, closure costs FY 2019/20 recurring, in LC 19 FY 2019/20 Media and Analyst Conference
Slide 20: Strict management of financing cost support solid Net profit
EBITDA to Net profit bridge Strict management of financing cost support solid Net profit In CHF million 704 Effective Tax rate: 18.2% (PY 18.6%3) 483 -13.3% -221 (PY -2111) 392 20 339 -102 311 8 (PY-117 1,2) -69 (PY -913) EBITDA Depreciation EBIT Financial Income Net Profit Factory FX Net Profit Net
Slide 21: Raw material price developments
Raw material Raw material price developments 200% 180% 160% 140% Increase FY 2019/20 120% (average) 100% Cocoa beans +6.3% Milk powder +21.0% 80% Sugar EU +7.6% Sugar World +4.1% 60% 40% 20% 0% Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 21 FY 2019/20 Media and Analy
Slide 22: Strict Working capital management supporting strong Free cash flow generation
Free cash flow Strict Working capital management supporting strong Free cash flow generation In CHF million -13.4% 108 814 (PY -33) 704 -149 (PY -2012) 404 -87 (PY 2911,2) (PY +66) 317 -281 22 (PY 3571,2) (PY -280) EBITDA EBITDA Change in Interest paid CAPEX Others FCF FY RMI Beans FCF recurring rec
Slide 23: Net debt reduced and further strengthened balance sheet
Financial Review – Net debt Net debt reduced and further strengthened balance sheet In CHF million -144 121 205 1,510 13 40 1,366 1,305 -317 -223 223 817 594 -772 Net debt IFRS 16 Net debt Dividends Free Acqui- FX Impact Net debt RMI Adjusted Adjusted Aug-19 Leases Aug-19 & Treasury cash flow sition
Slide 24: Balance sheet further strengthened
Financial key figures Balance sheet further strengthened Aug 19 Aug 19 (in CHF million) Aug 20 Pro-forma IFRS 16 Reported Net working capital 1,192 1,363 1,363 Non-current assets 2,800 2,857 2,650 Total Assets 7,141 6,712 6,508 Net debt 1,366 1,510 1,305 Adj. Net debt1 594 817 612 Shareholders’ equi
Slide 25: Proposed payout of CHF 22.00, a stable payout ratio of 39%
Dividend Proposed payout of CHF 22.00, a stable payout ratio of 39% Proposed dividend 39% 39% 39% 39% 33% 33% 37% Stable payout ratio of 39% of Net profit Payout ratio 357 369 CHF 22.00 per share 281 311 255 240 219 Timetable for dividend Net profit reported Shareholder approval: December 9, 2020 in
Slide 26: Strategy & Outlook
STRATEGY & OUTLOOK Full-Year Results 2019/20 Antoine de Saint-Affrique, CEO 26 FY 2019/20 Media and Analyst Conference
Slide 27: COVID-19 management
Strategy & Outlook COVID-19 management COVID-19 progression remains volatile, we remain vigilant… Continued focus on Care, Continuity & Cash Global and regional issue teams daily monitoring developments Strict health and safety protocols in place Phased approach to reintroducing or lifting precautio
Slide 28: Consistent long-term strategy in unprecedented times
Strategy & Outlook Consistent long-term strategy in unprecedented times management COVID-19 28 FY 2019/20 Media and Analyst Conference
Slide 29: Solid basis for growth: Expansion and Innovation
Strategy Solid basis for growth: Expansion and Innovation Expansion Innovation Ongoing investment and outsourcing Riding the wave Integration and expansion of GKC Foods in Australia Expansion plant-based offerings New outsourcing contracts in EEMEA and Australia Making the wave started ramp-up Cacao
Slide 30: Strong financial basis and sustainable supply chain
Strategy Strong financial basis and sustainable supply chain Cost Leadership Sustainability Benefit from optimized debt structure and Forever Chocolate ranked No. 2 sustainable strategy in strengthened balance sheet the Food & Beverage industry by Sustainalytics Shared Service Center 5th anniversary
Slide 31: Pursue expansion and drive for new opportunities
Outlook Pursue expansion and drive for new opportunities Although markets are still volatile, we will further pursue expansion and drive for new opportunities, thanks to our continued focus on customers and our strong innovation pipeline. This together with our solid financial basis, supports the co
Slide 32: Thank you
Thank you
Slide 33: Q&A session
Q&A session Live video stream