Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Q1 2022/23 Earnings Presentation
25 slides from Barry Callebaut's earnings presentation, Jan 23, 2023
Slide 1: Roadshow Presentation
Roadshow Presentation 3-Month Key Sales Figures 2022/23 January 23, 2023
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 3-Month Key Sales Figures 2022/23 Roadshow presentation
Slide 4: Creating chocolate happiness, one joyous moment at a time
Barry Callebaut at a glance - Who are we? Creating chocolate happiness, one joyous moment at a time We are the heart and engine of the chocolate and cocoa industry FY 2021/22: Sales revenue 8.1 billion In tonnes Sales volume 2.3 million Volume growth +5.3% 120 years of Big enough to Chocolate matter
Slide 5: We are present in the key parts of the cocoa and chocolate value chain
BC 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 chocolate and cocoa products 5 3-Month Key Sales Figures 2022/23 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 Total world harvest (2021/22): 4,823 TMT Rest of the World 14% Indonesia 4% Brazil 4% Côte d'Ivoire 44% Nigeria 6% Cameroon 6% Ecuador 8% Ghana 14% Sour
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 67%* of volume 13%* of volume Customer: Small, medium and global Small, medium and global Professio
Slide 8: A strong global market leader
BC 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 Cémoi Fuji Oil (Baronie Group) ECOM Clasen Mondelez Guan Chong Ferrer
Slide 9: Highlights
HIGHLIGHTS 3-Month Key Sales Figures 2022/23 9 3-Month Key Sales Figures 2022/23 Roadshow presentation
Slide 10: Slow start to back-end loaded year, committed to achieve current guidance
Highlights -3-Month key Sales Figures 2022/23 Slow start to back-end loaded year, committed to achieve current guidance in this final year. New midterm guidance focuses on accelerated value creation • Sales volume down -5.1%, as expected, due to residual effects of Wieze ramp-up and against strong c
Slide 11: Key milestones
Highlights -3-Month key Sales Figures 2022/23 Key milestones October 2022 September 2022 First local chocolate production footprint in S&P upgardes North Africa through credit rating of partnership with Attelli November 2022 Barry Callebaut in Morocco to ‘BBB’ with outlook ‘stable’ Wieze chocolate S
Slide 12: Innovation
Highlights -3-Month key Sales Figures 2022/23 Innovation • Intense Indulgence ‘Chocolate that is a real feast for the eyes and for the taste buds’ - 71% of global consumers agree that when tey want to celebrate they choose something with chocolate1 • Mindful Indulgence ‘Chocolate that is not only ta
Slide 13: Excluding residual effects from Wieze, volume decline more resilient than market
Highlights -3-Month key Sales Figures 2022/23 Excluding residual effects from Wieze, volume decline more resilient than underlying chocolate confectionery market Cocoa FY 2021/22 Q1 2022/23 Chocolate +5.3% -5.1% +8.9% +6.0% +8.5% +1.9% +6.5% +2.5% +9.6% +10.2% +7.5% -0.3% -2.6% -3.0% -5.8% -2.4% -5.
Slide 14: Gourmet down due to delayed effect from Wieze ramp-up
Highlights -3-Month key Sales Figures 2022/23 Gourmet down due to delayed effect from Wieze ramp-up % of total % volume growth Group volume vs. prior year 38% Emerging -3.8% Markets Key growth drivers 33% Outsourcing, crucial to continuously -0.1% Long-term Partnerships outperform the market 13% Gou
Slide 15: Regions impacted by residual effects of Wieze and against strong comparators
Highlights -3-Month key Sales Figures 2022/23 Regions impacted by residual effects of Wieze and against strong comparators Group Sales volume: 587,694 EMEA Volume growth tonnes 261,902 t BC Market1 45% EMEA -8.5% -4.5% Americas 160,908 t Americas -2.4% -2.2% 28% Asia-Pacific 39,543 t Asia Pacific +0
Slide 16: Raw material price development
Highlights -3-Month key Sales Figures 2022/23 Raw material price development 180% Change 1Q 2022/23 160% (average): Sugar EU +91.9% 140% 120% Cocoa beans +8.1% Sugar World +1.4% 100% Milk powder +15.7% 80% 60% 40% 20% 0% Mar-20 Mar-21 Mar-22 Sep-20 Sep-21 Sep-22 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Ma
Slide 17: Cocoa Combined Ratio development
Highlights -3-Month key Sales Figures 2022/23 Cocoa Combined Ratio development European Combined Ratio - 6-month forward ratio Combined Ratio gives 4.50 broad indication… 4.00 Shows general high level industry direction, assuming Combined 3.50 Ratio 3.6x many variables are fixed. 3.00 However… 2.50
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK 3-Month Key Sales Figures 2022/23 18 3-Month Key Sales Figures 2022/23 Roadshow presentation
Slide 19: Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation
Strategy & Outlook Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation Accelerated value New mid-term guidance creation Sustainable growth based on Key Growth Drivers • Continued growth in Emerging Markets 3-year period • Selective growth in Outsourcing 2023/24
Slide 20: Committed to achieve current 3-year mid-term guidance
Outlook Committed to achieve current 3-year mid-term guidance ‘With Wieze fully operational since end of October and against a strong comparator, we had, as expected, a slow start to the year. In markets where Gourmet products were widely available, we continued to win. We are committed to achieve o
Slide 21: Appendix
APPENDIX 21 3-Month Key Sales Figures 2022/23 Roadshow presentation
Slide 22: Sustainability update Forever Chocolate Progress Report
Sustainability Sustainability update Forever Chocolate Progress Report Forever Chocolate • Through Forever Chocolate we continue to create tangible impact on the ground • One out of two products we sell contain 100% sustainable cocoa or chocolate • Annual Forever Chocolate Progress report to be publ
Slide 23: Increase in EBIT per tonne thanks to enhanced product and customer mix
Key Financials Increase in EBIT per tonne thanks to enhanced product and customer mix 312 312 327 325 339 282 290 279 283 292 307 274 271 251 259 271 286 281 231 256 272 240 242 231 231 223 219 2,140 2,096 2,192 2,307 1,834 1,914 2,036 1,717 1,795 1’379 1,536 1,210 1,269 2009/10 2010/11 2011/12 2012
Slide 24: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) North America (22% of market) 2017-22 average: +0.6% 2017-22 average: +0.1% 1Q 2022/23: -5.9% 1Q 2022/23: -3.8% EEMEA (24% of market) 2017-22 average: +1.3% 1Q 2022/23: -1.5% Asia Pacific (14% of market
Slide 25: Chocolate consumption
Appendix Our market and opportunities ahead Global chocolate confectionery volume growth vs cocoa bean price Forecast volume growth per application 2021-2026 (Pure chocolate/compound volumes) 5 2’500 4 Volume growth, % 2’000 Absolute volume growth in tonnes / CAGR % 3 GBP / tonne 2 1’500 Chocolate C