Barry Callebaut AG · SIX:BARN
Barry Callebaut — Investor Presentation (June 2019)
28 slides from Barry Callebaut's investor presentation, June 2019
Slide 1: Operations at Barry Callebaut
Dirk Poelman– Chief Operations Officer Operations at Barry Callebaut 1
Slide 2: Agenda
Agenda ge da X Operations and Supply Chain Organization X Vision X Organization X Flow and Footprint X Continuous improvement X One+ X Quality X Strategic equipment sourcing X Investments X P ocess and technology Process technolog development de elopment X Sales and Operations Planning X Raw materia
Slide 3: OSCO Vision
OSCO Vision Respond R d to the h bbusiness i requirements i in i the most effective and efficient way 3
Slide 4: Strategic Pillars
Strategic Pillars X Flow and footprint optimization to achieve lowest cost of goods sold X Continuous improvement X Process and technology development X Sales and Operations planning X Raw material optimization 4
Slide 5: OSCO organization
OSCO organization COO Process & Technology OSCO controlling Development Project Analysis Continuous Strategic Improvement Planning OSCO Western OSCO Eastern Supply Chain Supply Chain OSCO Americas OSCO Asia Europe Europe Cocoa Cocoa Regional OSCO Director HR QA Director Central planning Logistic s R
Slide 6: Flow and Footprint
Flow and Footprint 6
Slide 7: Truly global manufacturing footprint with 40 production facilities in 26 countries
Truly global manufacturing footprint with 40 production facilities in 26 countries worldwide Thimister, Belgium Chekhov Russia Chekhov, Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK + Kagerod, g Sweden Chest
Slide 8: Advantages of our factory footprint
Advantages of our factory footprint X Focused factories allow us to produce a wide range of products with limited complexity Cocoa: X Origin factories focussed on access to the beans with limited product range X Cocoa sites in consuming countries focussed on blending of different origins and service
Slide 9: Advantages of our factory footprint
Advantages of our factory footprint X By operating as a network we can make full use of the economies of scale X Not all processes are done in each site X Lines can be dedicated to specific product types X In a network it is easier to create back-up in case of problems X Interchangeable products X F
Slide 10: Supporting growth while staying cost leader
Supporting growth while staying cost leader X Capacity increase (compared to 2008) +25% +21% Liquor q Pressing +22% Chocolate liquid 2008 2011 X Headcount evolution (factory headcount excl consumer) +3% 3.538 3.531 3.528 3.185 2007 2008 2009 2010 10
Slide 11: An efficiently utilized manufacturing footprint in all production steps
An efficiently utilized manufacturing footprint in all production steps Evolution of our capacity utilization 92.2% 91.0% Cocoa grinding 93.7% 88.6% 91.1% 90.1% 82 2% 82.2% Cocoa pressing 93.9% 79.4% 82.6% Liquid chocolate 89.1% 81.2% 2006/07 2007/08 2008/09 2009/10 11
Slide 12: Continuous Improvement
Continuous Improvement 12
Slide 13: Continuous improvement: One+
Continuous improvement One+ X Main Objectives X Install a common process and way of working for the group To improve the efficiency and the effectiveness To improve transparency and interchangeability To facility the rotation of people between sites and functions X Create a pool of people that
Slide 14: Continuous improvement: improvement levers
Continuous improvement One+ The methodology is focussing on a set of improvement levers, to achieve a performance driven organisation IMPROVEMENT LEVERS • Improve process knowledge • Implement a systematic approach and usage of tools • Close monitoring of process performance • Systematic Root cause
Slide 15: Continuous improvement: progress at American Canyon
Continuous improvement One+ Summary of progress at American Canyon One year ago… Today… X No ‘real’ root cause analysis X RCAs are done several times per week X We had bad meetings but didn’t know it X We know what a good meeting looks like X Managed from lagging indicators X KPIs are looked at dail
Slide 16: Continuous improvement: Quality
Continuous improvement Quality X Background: X Quality requirements in the market are changing X BC wants to be leading from a quality point of view X Implementation X BRC certification and site audits Strenghtening of the internal audit team Sharing of issues and best practices Training X Bet
Slide 17: Continuous improvement: Strategic equipment sourcing
Continuous improvement Strategic equipment sourcing Through data analysis, interviews and workshops with the sites, the following main levers that will drive the savings for the technical spend were identified: Proposed levers Advantages X Create spend transparency. X Full spend in scope Æ Leverage
Slide 18: Continuous improvement: Investments
Continuous improvement Investments X Different types of investments in the plants X Capacity p y extensions: about 20 – 40% depending p g on requirements q New factories New production lines Upgrading pg g of existing g lines (new ( technology) gy) X Replacements: about 20 – 25% Replacement
Slide 19: Investments support the growth of our business
Investments support the growth of our business In CHFm Additional growth IT 5% Upgrade / efficiency gains on existing sites Maintenance 4% 250 3% 3% 3% CAPEX as % of sales 170 153 144 145 115 2005/06 2006/07 2007/08 2008/09 2009/10 FY 2010/11 19
Slide 20: Process & Technology Development
Process & Technology Development 20
Slide 21: Engineering
Engineering X Main focus: Doing more with existing equipment Some examples: X High speed refining X Continuous conching and Salvator conching X High efficient hydraulic groups for presses X Making production processes more energy efficient Some examples: X New bean breaker Æ 20 – 25% reduction in ga
Slide 22: Sales & Operations Planning
Sales & Operations Planning 22
Slide 23: Sales and Operations planning
Sales and Operations planning X Main objectives: X Achieve the required internal and external service levels (98% OTIF) X Manage capacity utilization (80-85% for chocolate – 90-95% for cocoa) X Reduce the stock coverage year-on-year X E h Enhancement t off the th regional i l S&OP processes X Improv
Slide 24: Raw Material Optimization
Raw Material Optimization 24
Slide 25: Raw material saving projects
Raw material saving projects X Main Objectives X Recipe improvements: Work with R&D to reduce the costs of the materials X Better control and improvement of the yields in the plants l t X Reduction of waste and rework X Reduction of overweight X T Transport t optimization ti i ti X Implementation X
Slide 26: CSR: Energy Savings & CO2 reduction
CSR Energy Savings & CO2 reduction 26
Slide 27: CSR in Operations
CSR in Operations Energy savings and CO2 reduction X Target: X Reduce the CO2 emissions from the plants and owned DC’s by 20% per ton over the next 4 years X Results at the end of year 2: X Energy consumption per ton has been reduced by 11,8% X Main actions taken: Examples p X Awareness Target set
Slide 28: BC Competitive Advantages
BC Competitive Advantages X Footprint and size: X Economies of scale X Better capacity balancing X Backward integration (flow optimization) X Skill levels X Process know how: X Experienced people in all operations areas X Constantly searching for new ways to make our products and to improve our effi