Tate & Lyle Plc · LSE:TATE
Tate & Lyle — Corporate Update (April 2015)
10 slides from Tate & Lyle's corporate update, Apr 21, 2015
Slide 1: Actions to re-align and strengthen our business
Actions to re-align and strengthen our business 21 April 2015, London
Slide 2: Tate & Lyle is announcing two major actions
Tate & Lyle is announcing two major actions Exit from substantial part of Re-focus SPLENDA® Sucralose on European Bulk Ingredients rigorous value-based strategy Re-align Eaststarch joint venture Focus on areas where we see value Tate & Lyle’s European business Re-structure manufacturing foot
Slide 3: Re-alignment of the Eaststarch European Joint Venture
Re-alignment of the Eaststarch European Joint Venture Exit from three Substantially reduce European Bulk Ingredients footprint predominantly In advance of EU Sugar Regime reform in October 2017: Bulk Ingredients – Reduce exposure to European bulk sweeteners plants in Bulgaria, Turkey and Hungary
Slide 4: Sucralose market has changed significantly in last 18 months
Sucralose market has changed significantly in last 18 months New product launches by Demand for sucralose remains strong driven by: high intensity sweetener 2010-2014 – Global consumer desire for lower-calorie food and drink Sucralose Acesulfame K – Its superior functionality and taste Aspartame S
Slide 5: Re-focus and re-structure SPLENDA Sucralose
Re-focus and re-structure SPLENDA® Sucralose Pursue rigorous Re-structure valued-based strategy manufacturing footprint Focus on areas where we see value All SPLENDA® Sucralose with customers who fully value the production to be consolidated into benefits of SPLENDA® Sucralose: McIntosh, Alabama
Slide 6: Pro-forma financial impact of Eaststarch re-alignment and SPLENDA Sucralose re-structuring
Pro-forma financial impact of Eaststarch re-alignment and SPLENDA® Sucralose re-structuring Impact on 2015 Eaststarch Sucralose financial year re-alignment re-structuring Group Adjusted £(32)m No change £(32)m Operating profit Adjusted Profit £(31)m No change £(31)m before tax Diluted Earnings per c
Slide 7: Impact of Eaststarch re-alignment and SPLENDA Sucralose re-structuring
Impact of Eaststarch re-alignment and SPLENDA® Sucralose re-structuring Eaststarch Sucralose Total Impact re-alignment re-structuring Group Cash €240m – €240m proceeds Cash re-structuring c.£(15)m c.£(50)m c.£(65)m charges Capital Expenditure – c.£(18)m c.£(18)m Total cash c.£160m c.£(68)m £90 - £10
Slide 8: Forward dividend
Forward dividend Maintain dividend to end of 2016 financial year Year ending Year ended Pence per share Growth 31 March 2014 31 March 2015 5.1% Interim dividend 7.8p 8.2p Final dividend 19.8p 19.8p Held Flat Full Year dividend 27.6p 28.0p 1.4% The Board intends to maintain the total payment unchange
Slide 9: Summary
Summary Exit from substantial part of European Bulk Ingredients business Strengthen Speciality Food Ingredients business in Europe Position SPLENDA® Sucralose as a more focused, low-cost and sustainable business Proportion of Group adjusted operating profit from Speciality Food Ingredients t
Slide 10: Questions
Questions TATEMLYLE %