Barry Callebaut AG · SIX:BARN
Barry Callebaut — 9M 2011/12 Earnings Presentation
35 slides from Barry Callebaut's earnings presentation, July 2012
Slide 1: Roadshow Presentation – Nine-month key sales figures 2011/12
Barry Callebaut Roadshow Presentation– Nine-month key sales figures 2011/12 July 2012 July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12
Slide 2: Agenda
Agenda BC at a glance Highlights 9 months- 2011/12 Strategy and guidance July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 2
Slide 3: Present in all stages of the industrial chocolate value chain
Barry Callebaut is present in all stages of the industrial chocolate value chain Cocoa Cocoa beans Plantations 80% Cocoa liquor ~54% ~46% Cocoa powder Cocoa butter Barry Callebaut + Sugar, Milk, + Sugar, Milk, + Sugar, Milk, core activity others fats, others others Powder mixes Compound/Fillings Cho
Slide 4: Barry Callebaut at a glance
Barry Callebaut at a glance FY 2010/11 World leader in high-quality cocoa Sales volume =1,296,438 tonnes and chocolate products and outsourcing/ strategic partner of Asia- choice Pacific Global 4% World’s largest supplier of Gourmet Sourcing & Cocoa & Specialties chocolate for artisanal 20% cust
Slide 5: Robust business model
Robust business model Barry Callebaut business model 100g chocolate tablet contains: Price List Cocoa Products Gourmet r at market price business 11% Cocoa butter 9% Milk powder Cocoa Products Sugar on cost plus 11% Other Food Manufacturers 69% 80% Cost Plus Raw materials represent about 80% of op
Slide 6: Agenda
Agenda BC at a glance Highlights 9 months- 2011/12 Strategy and guidance July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 6
Slide 7: Global chocolate confectionery volume was flat
Global chocolate confectionery volume was flat 8 Months Sep-April 2012(in 1,000 tonnes)1 USA2 Western Europe 3 Eastern Europe 4 -1.0% -4.0% 6.0% 1’094 1’083 760 729 556 589 2011 2012 2011 2012 2011 2012 Asia-Pacific 5 Total Top 18 countries 6.0% 0.2% 119 126 Brazil 4.7% 2011 2012 139 145 2’667 2’672
Slide 8: Growth driven by Emerging markets and FM
Growth driven by Emerging markets and FM Sales Volume per Region – 9 months 2011/12 Europe +3.7% • Overall chocolate confectionery market grew 1.7%. Growth driven by FM business from both Western Europe and Eastern Europe, the latter with double digit growth. • Higher demand for Chocolate Specialtie
Slide 9: Other highlights / developments
Other highlights /developments Barry Callebaut and Morinaga to extend partnership in Japan Renewal and extension of a 10-year supply agreement between Barry Callebaut and Morinaga for up to 16,000 tonnes of chocolate and compound deliveries a year. In January 2008, Barry Callebaut and Morinaga close
Slide 10: Main raw material prices down
Raw material price development Main raw material prices down Cocoa bean price (GBP/tonne) White Sugar average price (EUR/tonne) World sugar EU white sugar EU ref. Price White 2400 1050 2200 June 2012 1574 GBP/ton 950 June 2012 2000 780 €/ton 850 1800 750 1600 650 1400 550 1200 450 350 1000 250 800 1
Slide 11: Combined cocoa ratio consolidating at lower levels
Cocoa processing activity Combined cocoa ratio consolidating at lower levels Cocoa powder-butter combined ratio* – European ratios 6 months forward against LIFFE Combined ratio 3.17 – June 2012 Powder ratio Butter ratio Combined ratio under pressure. Butter ratios continue tend down. Powder also s
Slide 12: Five areas of recent additional investments
Five areas of recent additional investments in order to cope with future growth 1. Investments in structures (HR, Q&A, IT, Supply Chain, Customer Service) 2. Ramp-up of outsourcing deals 3. Investments in Gourmet 4. Factory expansions 5. Investments in Sustainable Cocoa July 2012 Barry Callebaut – R
Slide 13: Agenda
Agenda BC at a glance Highlights 9 months- 2011/12 Strategy and guidance July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 13
Slide 14: Our Strategy
Our Strategy Vision “Heart and engine of the chocolate industry” Expansion Innovation Strategic Sustainable, pillars profitable growth Cost leadership Sustainable Cocoa July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 14
Slide 15: Growth driven by emerging markets and long-term agreements
Expansion Expansion Growth driven by emerging markets and long-term agreements % of total consolidated sales volume* - 5 year development Emerging markets CAGR +15.0% 23% 22% Long-term 21% 16% agreements CAGR +62.3% 14% with strategic 15% 20% partners 11% 7% 10% 17% 2% Developed CAGR +2.4% 61% marke
Slide 16: Expansion of our manufacturing footprint in the last 12 months
Expansion Expansion Expansion of our manufacturing footprint in the last 12 months Thimister, Belgium Chekhov, Russia Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK Kagerod, Sweden Chester, UK Pennsauken, NJ,
Slide 17: BC market leader in the open market
Expansion BC market leader in the open market Global Industrial Chocolate market in 2010/11 = 6,000,000 tonnes* Open market Integrated market Competitors Big 4 chocolate Others confectionary Others players 22% 40% 20% 40% 2% 3% 49% 51% 8% 80% 11% 14% *BC estimates July 2012 Barry Callebaut – Roadsho
Slide 18: Outsourcing and Strategic Partner of choice
Expansion Expansion Outsourcing and Strategic Partner of choice 2006-07 Nestlé Cadbury Hershey Morinaga (February 2007) Schweppes (April 2007) (September 2007) (June 2007) 2010-11 Kraft Foods Green Mountain Hershey Extension Chocolates Turín Baronie Group (September 2010) Coffee Roasters (May 2011)
Slide 19: Ramp-up phases of recent long-term strategic agreements/outsourcing deals
Expansion Expansion Ramp-up phases of recent long-term strategic agreements/outsourcing deals 1y 1y 3y 2y 1y 1y 1y 2007 2008 2009 2010 2011 2012 2013 2014 Today July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 19
Slide 20: Gourmet actions to accelerate Gourmet growth
Expansion Gourmet 6 actions to accelerate Gourmet growth Gourmet global market and BC presence Total= >CHF 3bn Chocolate products Adjacent products CHF ~2bn sales CHF >1bn sales 100% 80 > 30 competitors > 20 competitors >25 Adjacent >10 > 100 60 competitors competitors products: competitors Nut base
Slide 21: Growth through acquisitions / adjacencies
Expansion Accelerating Gourmet business Growth through acquisitions / adjacencies La Morella Nuts Specialist in producing a variety of high quality nut-based ingredients Planned launches as of May 2012: 8 new products under the Cacao Barry® brand 10 new products under the Callebaut® brand
Slide 22: Award winning products and initiatives
Innovation Innovation: Developed by Barry Callebaut Award winning products and initiatives Innovation Award for Terra Cacao (FiE Nov 2011) Most innovative Food Ingredient Award Confectionery Innovation of the year Barry Callebaut’s most successful specialties launch Innovation Award for St
Slide 23: Project Spring
Cost Leadership Cost Leadership Project Spring Objective: Streamline our internal processes to improve the overall service for our Customers and create competitive cost advantage Scope: Main focus areas in Western Europe • Customer Service • Pricing • Sales & Operations Planning • Quality Assurance
Slide 24: Cocoa Horizons / Sourcing diversification
Sustainability Sustainable Cocoa Cocoa Horizons / Sourcing diversification Cocoa Horizons: CHF 40 Million to be invested in 10 years in origin countries; largest program in Barry Callebaut’s history Goals: Increase cocoa farms productivity Increase amount of certified cocoa Improve livelih
Slide 25: Our performance in relation to our mid-term guidance
Our performance in relation to our mid-term guidance Volume development (in tonnes)* CAGR 9.4% yoy growth 7.2% 12.3% 5.1% 13.4% 6.7% H2 H1 FY 06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 * Excluding consumer business July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 25
Slide 26: Our performance in relation to our mid-term guidance
Our performance in relation to our mid-term guidance EBIT development (in Local currencies)* CAGR 9.2% 15.3% yoy growth 9.8% 8.3% 5.8% H2 -5.5% H1 FY 06/07 FY07/08 FY08/09 FY09/10 FY10/11 HY11/12 * Excluding consumer business July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 26
Slide 27: Confident to reach our mid-term financial targets
Outlook Confident to reach our mid-term financial targets Four-year average growth targets for 2009/10 –2012/13 Volumes: 6-8% EBIT: at least in line with volume growth * Our view for the 2009-2013 period reflects current economic forecasts for the markets we operate in as well as internal deve
Slide 28: Reasons to invest in Barry Callebaut
10 Reasons to invest in Barry Callebaut World leader in high-quality cocoa and chocolate products Cost Leadership along the entire value chain with a continuous improvement structure Leader and growing presence in emerging markets World’s largest supplier of Gourmet & Specialties chocolate f
Slide 29: Appendix
Appendix July 2012 Barry Callebaut – Roadshow presentation Q3 2011/12 29
Slide 30: Our product offering focuses on cocoa and chocolate
Our product offering focuses on cocoa and chocolate Food Manufacturers Gourmet & Specialties Cocoa Products • Standard chocolate • Chocolate • Standard Cocoa Products • Cocoa Products (cocoa powder, butter, • Specialties • Coating liquor) • Certified • Fillings • Probiotic • Low fat and high fat • R
Slide 31: West Africa is the world's largest cocoa producer
West Africa is the world’s largest cocoa producer – BC sources locally Total world harvest (10/11): 4,195k MT 70% of total cocoa beans come others 11% from West Africa Ecuador 3% Ivory Coast* Brazil* 35% BC processed ~540,000 tonnes 5% of cocoa beans or 13% of total Cameroon* world harvest 5%
Slide 32: Investments support the growth of our business
CAPEX development Investments support the growth of our business in mCHF Additional growth IT Upgrade / efficiency gains 5% existing sites Maintenance 4% 250 3% 3% 3% CAPEX as % of sales 180 174 153 144 145 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 PLAN July 2012 Barry Callebaut – Roadshow pre
Slide 33: Revenue by currency
Revenue by currency FY 2010/11 Sales Revenue Others* 33% EUR 40% CHF 1% GBP 9% USD 17% * Others include: Canadian Dollar, Mexican Peso, Brazilian Real, Japanese Yen, Russian Ruble, Australian Dollar, Chinese Yuan, Malaysian Ringgit, Polish Zloty, Czech koruna, Swedish Krona, Indonesian, Rupiah ,etc
Slide 34: Solid and profitable growth
Key Figures 2010/11 – from continuing operations Solid and profitable growth Change in % Change in % FY FY In local 2010/11 2009/10 currencies (restated) Sales volume [in tonnes] 7.2% 1'296'438 1'209'654 Sales revenue [CHF m] 13.3% 0.7% 4'554.4 4'524.5 CHF per tonne 5.7% -6.1% 3'513 3'740 Gross prof
Slide 35: Solid Balance Sheet with improvement of all key ratios
Balance Sheet Solid Balance Sheet with improvement of all key ratios Change Aug 11 Aug 10 in % Total Assets [CHF m] -8.6% 3'263.1 3'570.8 Net Working Capital [CHF m] -8.0% 888.1 964.9 Non-Current Assets [CHF m] -14.0% 1'208.4 1'405.8 Net Debt [CHF m] -9.3% 789.8 870.8 Shareholders' Equity [CHF m] -6