Barry Callebaut AG · SIX:BARN
Barry Callebaut — Investor Day (October 2014)
18 slides from Barry Callebaut's investor day presentation, Oct 21, 2014
Slide 1: Barry Callebaut as a global leader in chocolate and cocoa
Barry Callebaut as a global leader in chocolate and cocoa CEO – Juergen Steinemann Investors days – Belgium – Oct 21, 2014 October 22, 2014
Slide 2: Agenda
Investors days 2014 Agenda Market development Differentiation factors Strategy update Page 2 October 22, 2014 Investors days 2014
Slide 3: Chocolate remains a resilient category with 2% average annual volume growth
Industry overview However in the long-term chocolate remains a resilient category with an average annual volume growth of 2% Chocolate confectionery – Total market volume 2'250 2'125 2'017 1'781 1'730 1'380 1'435 Cocoa bean price GBP 844 911 888 1’043 Worst economic downturn 4.1% 4.1% 3.1% 2.8% 2.0%
Slide 4: Key emerging markets expected in top 10 chocolate markets by 2019
Industry overview Key emerging markets are expected to be in the top 10 chocolate markets by 2019 Chocolate confectionery – Total market volume ‘000 tonnes 7.7 7.9 1'800 Consumption per capita in kg 1'600 1'400 5.8 1'200 4.8 4.4 4.2 1'000 800 2.8 600 1.8 400 200 0.2 0.2 0 USA Germany Russia UK Franc
Slide 5: Chocolate is an industry with significant outsourcing potential
Industry overview Chocolate is an industry with significant outsourcing potential Total Industrial chocolate market estimated at 6.4 mio tonnes - 2014 • In emerging markets about 80% is captive market • On average big chocolate players currently outsource ~ 20-30% of total needs 49% 51% Already Prod
Slide 6: Agenda
Investors days 2014 Agenda Market development Differentiation factors Strategy update Page 6 October 22, 2014 Investors days 2014
Slide 7: Present in the key parts of the cocoa and chocolate value chain
From the cocoa bean to the chocolate and cocoa products Barry Callebaut is present in the key parts of the cocoa and chocolate value chain Cocoa Farming Barry Callebaut’s core activities Cocoa Processing Cocoa Beans 80% Cocoa Liquor ~54% ~46% Cocoa Powder Cocoa Butter + Sugar, Milk, + Sugar, Milk, +
Slide 8: Our 52 factories provide manufacturing diversification and competitive advantage
Global Footprint Our 52 factories provide us manufacturing diversification and a unique competitive advantage Cocoa processing factory Chocolate factory Integrated factory New factories Page 8 October 22, 2014 Investors days 2014
Slide 9: Uniquely positioned in industrial chocolate and cocoa markets
Chocolate and Cocoa markets Barry Callebaut uniquely positioned in industrial chocolate and cocoa markets Cocoa grinding capacity Industrial chocolate – open market BC BC Cargill Cargill ADM Blommer Blommer ADM Mondelez Cemoi Guan Chong Puratos Ecom Cocoa Fuji Oil Nestlé IRCA Ferrero Guittard BT Coc
Slide 10: Sales volume growth significantly above the market
Barry Callebaut: One of the fastest growing food companies in volume Sales volume growth significantly above the market over the last years 1'499 +7.8% BC stand-alone 1’378 1’269 1’210 1'110 2.0% 2.1% 1.4% Chocolate market 0.1% yoy growth -1.5% 2008/09* 2009/10 2010/11 2011/12 2012/13 Source: Euromo
Slide 11: Agenda
Investors days 2014 Agenda Market development Differentiation factors Strategy update Page 11 October 22, 2014 Investors days 2014
Slide 12: Our four-pillar growth strategy remains the basis of long-term success
Barry Callebaut Group’s growth strategy Our 4 pillar growth strategy remains as the basis of the company’s long- term business success “Heart and engine of the Vision chocolate and cocoa industry” Expansion People & Processes Sustainable, 4 strategic Innovation profitable pillars growth Cost Leaders
Slide 13: Our expansion continues along three key growth drivers
Strategy implementation Our expansion continues along the three key growth drivers Emerging Markets Long-term outsourcing & Gourmet & Specialties Strategic partnerships CAGR 5 years +14.9%* +26.6% +8.3% in volume (HY 2009- 2014) 28% % 28% 10% of total Group volume * Stand-alone, including recently a
Slide 14: Six shaping initiatives to concentrate on
Our strategy translated in initiatives By reviewing our strategy, we have set the stage for the next years to come. We defined 6 shaping initiatives to concentrate on 1 Develop Outsourcing/ Partnership 2.0 2 Gain leadership in Cocoa Powder 3 Improve product and service Differentiation 4 Develop Comp
Slide 15: Shaping items aligned with the four pillar strategy
The Barry Callebaut Group’s growth strategy These shaping items are well aligned with the four pillar strategy “Heart and engine of the chocolate and cocoa industry” 1 3 5 Outsourcing/ Product & service Operational Partnership 2.0 differentiation Excellence Expansion Innovation Cost Leadership Susta
Slide 16: Global platform programs for the next level of growth
Global platform programs At the same time, we have created global platform programs to allow for the next level of growth Spring: Improving customer service and speed to market HR4G: Talent development and management performance Quality Culture: Driving an even stronger quality mindset One +: Operat
Slide 17: Taking industry leadership in sustainability: Chocovision
Chocovision: leading the industry agenda Taking Industry leadership in Sustainability A business-for-business conference Neutral platform for key stakeholders in the cocoa and chocolate industry Network, access to knowledge, new ideas for sustainable solutions 250 board-level executives, politicians
Slide 18: What makes Barry Callebaut unique?
Summary What makes Barry Callebaut unique? Focused on chocolate and cocoa Global no. 1 player in cocoa, chocolate and gourmet Proven and long-term oriented strategy Unparalled global footprint, present in all key continents Preferred outsourcing and strategic partner Leader and growing presence in e