Barry Callebaut AG · SIX:BARN
Barry Callebaut — 9M 2020/21 Earnings Presentation
35 slides from Barry Callebaut's earnings presentation, Jul 15, 2021
Slide 1: Roadshow presentation: 9-Month Key Sales Figures 2020/21
Roadshow presentation 9-Month Key Sales Figures 2020/21
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: Barry Callebaut at a glance
Barry Callebaut at a GLANCE 3 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 4: Strong values & a strong team
Barry Callebaut at a glance - Who are we? Strong values & a strong team FY 2019/20: We are the heart and engine of the chocolate and cocoa industry 120 years of Big enough to Chocolate matter, Small experience enough to care 4 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 5: We are present in the key parts of the cocoa and chocolate value chain
Barry Callebaut at a glance - What do we do? We are present in the key parts of the cocoa and chocolate value chain From the cocoa bean to cocoa products and chocolate 5 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 6: A global footprint and local service: over 60 factories worldwide
Barry Callebaut at a glance - What do we do? A global footprint and local service: over 60 factories worldwide and strong roots in origin countries Cocoa & Chocolate Total world harvest (20/21E): 4,843 TMT factories Chocolate Academy Rest of World Brazil* 12% 4% Indonesia* 5% Côte d’Ivoire* 43% Nige
Slide 7: A broad offering with cost plus model for majority of business
Barry Callebaut at a glance – offering and business model A broad offering with cost plus model for majority of business Cocoa Products Food Manufacturers Gourmet & Specialties % share: 20%* of volume 69%* of volume 11%* of volume Customer: Small, medium and Global Small, medium and Global Professio
Slide 8: A strong global market leader
Barry Callebaut at a glance – Market Leadership A strong global market leader Cocoa grinding capacity (kMT) Industrial Chocolate (open market – kMT) Market impact Barry Callebaut Barry Callebaut Cargill Cargill Olam Fuji Oil Guan Chong Puratos Fuji Oil Cémoi ECOM Clasen Mondelez Guan Chong Ferrero I
Slide 9: Highlights
HIGHLIGHTS 9-Month Key Sales Figures 2020/21 9 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 10: Accelerating volume growth
Highlights 9-Month Key Sales Figures 2020/21 Accelerating volume growth Sales volume up +3.4% in the first nine months, strong chocolate performance in the third quarter (+21.2%) Sales revenue of CHF 5.4 billion, up +7.7% in local currencies (+2.1% in CHF) Confident on mid-term guidance1 “In the thi
Slide 11: Strong recovery in chocolate, above pre-COVID level
Highlights 9-Month Key Sales Figures 2020/21 Strong recovery in chocolate, above pre-COVID level Cocoa FY 2018/19 FY 2019/20 9M 2020/21 Chocolate +5.1% -2.0% +3.4% +18.4% +8.4% +10.6 % +10.6% +8.2% +5.3% +21.2% +10.2% +10.7% +3.0% +2.5% +7.7% +1.7% +3.1% +2.5% +5.9% +2.9% +4.3% -4.3% -1.3% +2.5% -14
Slide 12: Strong volume recovery in all Regions
Highlights 9-Month Key Sales Figures Strong volume recovery in all Regions Group Sales volume: 1,622,479 EMEA Americas 736,375 tonnes 452,280 Global Cocoa APAC 327,891 105,933 EMEA Americas Asia Pacific Global Cocoa 9M 2020/21 volume +2.9% +9.4% +9.0% -4.3% growth +1.0% +2.4% -0.8% Market volume gro
Slide 13: Key growth drivers: accelerated growth
Highlights 9-Month Key Sales Figures 2020/21 Key growth drivers: accelerated growth % of total % volume growth Group volume vs. prior year 38% +9.1% Emerging excl. Cocoa: Markets +12.5% Key growth drivers 34% Outsourcing, crucial to continuously +5.5% Long-term Partnerships outperform the market 11%
Slide 14: Key milestones in third quarter
Highlights 9-Month Key Sales Figures 2020/21 Key milestones in third quarter March 2021 • Barry Callebaut joins Seekewa’s agro revolution • Official opening of new chocolate factory in Baramati, India April 2021 • Launch of Treat Tomorrow • CEO succession announced: Peter Boone to succeed Antoine de
Slide 15: Raw material price development
Raw material Raw material price development 2 1.8 1.6 Changes 9M 2020/21 average YoY: 1.4 1.2 Milk powder -1.0% 1 Sugar EU +0.2% Sugar world +19.1% 0.8 Cocoa beans -9.3% 0.6 0.4 0.2 0 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Aug-21 Cocoa beans Dairy Sugar world Su
Slide 16: Cocoa Combined Ratio development
Cocoa processing profitability Cocoa Combined Ratio development European combined ratio - 6 month forward ratio Combined Ratio gives a broad indication 4.00 3.50 Combined Shows general high level industry ratio 3.4x direction, assuming many variables 3.00 are fixed. 2.50 However… Butter ratio Many v
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK 9-Months Key Sales Figures 2020/21 17 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 18: Consistent long-term strategy – sharpened business model
Strategy & Outlook Consistent long-term strategy – sharpened business model management COVID-19 18 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 19: Sustaining success and strong pipeline
Strategy Sustaining success and strong pipeline Expansion Innovation Ongoing investment Shaping chocolate indulgence for the decade to come Optimize operational setup (North America, Russia) Health-conscious, happiness-seeker, plant-based, curious – the attitude to chocolate is evolving. We aim to s
Slide 20: Sustainability - making sustainable chocolate the norm
Strategy Sustainability - making sustainable chocolate the norm • Unique and extensive farm mapping database • Professionalizing farming with Farm Business Plans • Tailor-made service to farmers through Farm Services • Farmer finance 143,233 71,972 181,861 farmers in our supply chain lifted farmers
Slide 21: Strategy: carbon impact, deforestation and ecosystem restoration
Strategy • Assess the carbon impact of our entire supply chain (scope 1, 2 and 3) • Public disclosure of our direct cocoa suppliers in Côte d’Ivoire, Ghana and Cameroon • Large scale ecosystem restoration • Piloting regenerative agriculture and scaling innovative solutions such as biochar -8.1% 3.65
Slide 22: Forever Chocolate Initiative – external recognition
Strategy Forever Chocolate Initiative – external recognition Sustainalytics CDP • #2 sustainability strategy in the foods industry • Leading on carbon reduction • leader among peers • A- rating on carbon footprint reduction activities • CDP assesses the carbon reduction plans of more than 8,000 comp
Slide 23: Confident to deliver on mid-term guidance
Outlook Confident to deliver on mid-term guidance “As markets are gradually reopening, we expect further normalization of operations and growth to continue. A strong customer focus, a range of exciting innovations and a solid financial basis give us the confidence to deliver on our mid-term guidance
Slide 24: Appendix
Appendix
Slide 25: What makes Barry Callebaut unique
Appendix What makes Barry Callebaut unique • Global No. 1 player in chocolate and cocoa • Deep chocolate and cocoa expertise • Consistent growth above the underlying market • Global leader in Gourmet & Specialties • Proven and long-term oriented strategy • Unparalleled global footprint, present in a
Slide 26: Continued volume recovery and solid profitability
Financial review – Key figures Continued volume recovery and solid profitability 26 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 27: Resilient mix and cocoa business mitigate COVID-19 volume impact
Financial review – Gross profit Resilient mix and cocoa business mitigate COVID-19 volume impact 27 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 28: Operating profit (EBIT) up +3.8% against prior-year recurring
Financial review - EBIT bridge Operating profit (EBIT) up +3.8% against prior-year recurring thanks to resilient Gross profit and strict cost management 28 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 29: Increase in EBIT thanks to enhanced product and customer mix
Appendix – long-term EBIT development Increase in EBIT thanks to enhanced product and customer mix and continued improvement in Cocoa business In CHF millions 327 312 312 290 295 282 274 279 271 283 251 286 282 234 272 256 242 223 231 231 219 2’036 2,140 2,096 1’795 1’834 1’914 1’717 1’379 1’536 1’2
Slide 30: Net profit +6.9% compared to prior-year recurring
Financial review - EBITDA to Net profit bridge Net profit +6.9% compared to prior-year recurring thanks to solid profitability and lower financing cost and taxes 30 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 31: Continued focus on working capital management
Financial review - Free cash flow Continued focus on working capital management supporting strong Free cash flow generation 31 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 32: Net debt further reduced
Financial Review – Net debt Net debt further reduced 32 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 33: Balance sheet
Financial review - Key Figures Balance sheet 33 9-Month Key Sales Figures 2020/21 Roadshow presentation
Slide 34: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) 2015-20 average: +0.5% North America (22% of market) 9M 2020/21: +2.8% 2015-20 average: -0.4% 9M 2020/21: +2.8% EEMEA (25% of market) 2015-20 average: +0.7% 9M 2020/21: -2.9% Asia Pacific (13% of market
Slide 35: Chocolate consumption
Appendix Our market and opportunities ahead Global Chocolate confectionery volume growth vs cocoa bean price Forecast volume growth per application 2019-2024 (Pure chocolate/compound volumes) 2’500 Volume growth, % 2’000 Absolute volume growth in tonnes / CAGR % GBP / tonne 1’500 Chocolate 0.8% conf