Barry Callebaut AG · SIX:BARN
Barry Callebaut — Non-Deal Roadshow (June 2009)
28 slides from Barry Callebaut's roadshow presentation, June 2009
Slide 1: Barry Callebaut 9-months roadshow presentation
Barry Callebaut 9-months roadshow presentation June/July 2009 Barry Callebaut
Slide 2: Agenda
Agenda u Barry Callebaut company overview and strategy u Highlights first 9 months 2008/09 and business review u Outlook June 2009 Barry Callebaut 2
Slide 3: Active along the entire cocoa and chocolate value chain
Barry Callebaut is active along the entire cocoa and chocolate value chain Cocoa Semi-finished Products Chocolate Products Sugar 100% Retail Milk customers Other Consumer Products Liquor for Chocolate via Industrial Shells/ chocolate Couverture 27% customers waste 50% Butter Artisanal 100% customers
Slide 4: Barry Callebaut at a glance
Barry Callebaut at a glance Barry Callebaut FY 2007/08 Net revenue: CHF 4.8 bn u World leader in high-quality cocoa and chocolate products and outsourcing partner of choice, with over 40% share in the industrial chocolate market Cocoa Consumer 11 %13% 23Products % u World’s largest supplier of Gourm
Slide 5: Strategy successful even in challenging times
Confirmed growth strategy Strategy successful even in challenging times u “Heart u “Heart and and engine engine of of the the chocolate chocolate industry” industry” Vision u Chocolate u Chocolate expert expert and and business business partner partner of of choice choice u Number u Number one one c
Slide 6: BC doubles network to 40 factories in 5 years
Geographic expansion: BC doubles network to 40 factories in 5 years Chekhov, Russia (September 2007) Netherlands Sweden Stollwerck, Germany Luijckx (2004) (2002) (2003) Belgium Canada 1 UK Switzerland Robinson, U.S. Jacques, Belgium (2008) Morinaga, Osaka, Japan (2002) Nappa, U.S. Dijon, France (200
Slide 7: Profitability drivers in challenging markets
Cost leadership Profitability drivers in challenging markets u Continued cost savings u Negative impact of lower since January 2008 cocoa butter prices u Hiring freeze (combined ratio) will impact u Flexible operational set-up – profitability in H2 08/09 and reduced production costs H1 09/10 u Reduc
Slide 8: West Africa is the world's largest cocoa producer
Innovation West Africa is the world’s largest cocoa producer Others u Total 3,684 m tonnes harvested 10% globally in 2007/08 PNG 1% u BC sources ~470k MT/y (07/08) Indonesia * Ivory Coast* cocoa, thereof 65% directly from 13% 39% farmers, cooperatives & local trade houses Ecuador u BC has various co
Slide 9: BC innovation leader: controlled fermentation
Innovation BC innovation leader: controlled fermentation Fermentation: naturally removes the remaining fruit pulp that sticks to the beans. The beans change color from beige to purple and develop their aroma. Fermentation is a spontaneous process and differs from country to country. Main benefits of
Slide 10: Programs and partnerships
CSR strategy Programs and partnerships Barry Callebaut’s long-term commitment u Our own CSR programs and initiatives u Support customer requirements to source cocoa with 3rd- party-verified certification labels, such as: § Fairtrade, Rainforest Alliance, UTZ, IMO, Starbucks Cocoa Practices, Organic,
Slide 11: Agenda
Agenda u Barry Callebaut company overview u Highlights first 9 months 2008/09 and business review u Outlook June 2009 Barry Callebaut 11
Slide 12: Highlights first nine months
Highlights first nine months u In the third quarter sales volumes grew significantly in recessionary markets u We grow thanks to geographic expansion, outsourcing deals and market share gains u Sales volumes: 895,391 tonnes u Third quarter: +8.8% u Year-to-date: +2.6% u Sales revenue: CHF 3,639.6 mi
Slide 13: Highlights first nine months
Highlights first nine months January 2009 February 2009 April 2009 Inauguration of Sale of Van Houten September 2008 Barry Callebaut Brazil S/A, new factory in Singapore Acquisition of IBC, and Bunge signed a October 2008 Monterrey, consumer business specialist in distribution agreement for Opening
Slide 14: Declining volume in mature markets, decline slowing in last quarter
Chocolate consumption Declining volume in mature markets, yet decline slowing down in last quarter 10 000 USA* Western Europe Emerging markets** units 250'000 -8.1% 1'100 -2.2% 650 240'000 1'050 600 +4.9% 230'000 1'000 220'000 550 210'000 950 500 200'000 900 190'000 450 850 180'000 400 800 170'000 7
Slide 15: Lower cocoa butter prices, cocoa prices volatile
Raw materials price development until June 2008/09 Lower cocoa butter prices, cocoa prices volatile London Cocoa 2nd Position weekly close in £/ton in EUR/ton Cocoa powder-butter combined ratio European ratios - 6 months fwd against Liffe EU powder EU butter Combined ratio 4.40 2700 4.00 in /ton 250
Slide 16: Rebound in volumes in Q3 amid declining markets
Region Europe Rebound in volumes in Q3 amid declining markets Regional revenue split 9m 08/09 u Decline in sales volumes during first six months, strong rebound in Western Europe in third quarter (March-May) Asia/RoW 8% u Sales revenue negatively impacted by currency translation effects u Positive t
Slide 17: Continued growth due to outsourcing agreement and market share gains
Region Americas Continued growth due to implementation of outsourcing agreement and market share gains Regional revenue split 9m 08/09 u Substantial growth in Food Manufacturers due to volumes Asia/RoW delivered to Hershey’s under the existing long-term supply 8% agreement and new volumes with small
Slide 18: Increased volumes, high demand in Gourmet & Specialties
Region Asia/Rest of World Increased volumes, high demand in Gourmet & Specialties Continuous growth in all businesses Regional revenue split 9m 08/09 u Asia/RoW u Sales volumes growth of 26.3%, partly influenced by 8% acquisitions and divestitures Americas u After a strong second quarter, sales volu
Slide 19: Positive development in 3rd quarter in all segments
Business segments Positive development in 3rd quarter in all segments 9 months overview: INDUSTRIAL FOOD SERVICE / RETAIL Food manufacturers Gourmet & Specialties Volume: 572 k MT; +1.9% Q3: +9.5 Revenue: CHF 477m, -5.3% Q3 +3.8% Revenue: CHF 1’981m, +0.3% Q3 +8% in loc curr.: -0.3% Q3 +6.5% in loc
Slide 20: Acquisition of vending mix company Eurogran
Expansion in Gourmet & Specialties Acquisition of vending mix company Eurogran u Barry Callebaut acquires 100% of shares in Eurogran A/S from MISP Holding with immediate effect (consolidation as per June 1) u Eurogran will be integrated into Barry Callebaut Sweden, headquarters of Barry Callebaut Ve
Slide 21: Natra transaction will allow BC to focus on core
Focus on core business Natra transaction will allow BC to focus on core MoU for the combination of BC and Natra consumer businesses in Europe NA NA Mutual benefits: NA Barry Callebaut: u Natra Chocolates Holding u Complementary shares (30-49%) product portfolio u Long-term supply agreement u Complem
Slide 22: Natra transaction – structure and impact on BC financials
Natra transaction – structure and impact on BC financials [preliminary] u Pro forma sales of the combined entity of Roll-up EUR850m for year ending Dec-08, corresponding option to 215kT u Revenue carve out from BC European Consumer business: CHF m 800-850 u Additional volume for BC food manufacturin
Slide 23: Stable financing situation due to long-term secured credit-lines
Stable financing situation due to long-term secured credit-lines Financing and liquidity situation per February 28, 2009 [CHF] 2500 ØCHF 500 various 2000 uncommitted Short-term Financial leeway facilities per end February 2009 CHF 1260 1500 Syndicated CHF m Maturity CHF 273 2012 (16%) bank loan ABS
Slide 24: CAPEX development
CAPEX development Planned to decrease to run-rate level over 2 years CHF m 300 250 250 200 153 ~ 147 * 150 ~137 115 Run-rate level additional growth 100 IT 50 Upgrade/ efficiency gains existing sites Maintenance 0 2005/06 2006/07 2007/08 2008/09 2009/10 forecast plan * Excluding consumer Europe June
Slide 25: Agenda
Agenda u Barry Callebaut company overview u Highlights first 9 months 2008/09 and business review u Outlook June 2009 Barry Callebaut 25
Slide 26: Targets through to 2010/11 confirmed
Outlook Targets through to 2010/11 confirmed u Barry Callebaut sees 2008/09 as a year of slower volume but strong profit growth: u Volume growth expected at 2-4% - clearly outpacing the global chocolate market u Profits in local currencies expected to be in line with targets u Order portfolio for th
Slide 27: Summary
Summary Barry Callebaut’s well-balanced global presence, broad product portfolio and cost leadership are decisive advantages in times of economic crisis Increased profitability in recessionary markets 2008/09 year of slower volume growth; Four-year financial targets confirmed June 2009 Barry Calleba
Slide 28: Cautionary note
Cautionary note Forward-looking statements Any information given on these slides as well as during the conference call has been prepared by Barry Callebaut solely for the use at this analyst presentation. Certain statements contained therein regarding the business of Barry Callebaut are of a forward