Barry Callebaut Ag · SIX:BARN
Barry Callebaut — HY 2021/22 Earnings Presentation
32 slides from Barry Callebaut's earnings presentation, April 2022
Slide 1: Roadshow Presentation Half-Year Results 2021/22
Roadshow Presentation Half-Year Results 2021/22 April 2022
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 Half-Year Results 2021/22 Roadshow presentation
Slide 4: Growing the world of chocolate and cocoa for 25 years
Barry Callebaut at a glance - Who are we? Growing the world of chocolate and cocoa for 25 years 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 Half-Year Results 2021/22 Roadshow presentation
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 Half-Year Results 2021/22 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 factories Total world harvest (20/21E): 5,226 TMT CHOCOLATE ACADEMYTM centers Rest of the World 11% Indonesia 4% Brazil 4% Côte Nigeri
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 Half-Year Results 2021/22 Peter Boone, CEO 9 Half-Year Results 2021/22 Roadshow presentation
Slide 10: Strong volume, solid profitability and continued good cash generation
Highlights Half-Year Results 2021/22 Strong volume, solid profitability and continued good cash generation • Sales volume up +8.7%, with outstanding chocolate performance (+9.9%) • Sales revenue of CHF 4.0 billion, up +16.5% in local currencies (+15.8% in CHF) • Operating profit (EBIT) recurring1 of
Slide 11: Ukraine / Russia update
Highlights Half-Year Results 2021/22 Ukraine / Russia update Many of our colleagues have family and friends in Ukraine, and their stories are hitting very hard. Our company, and many of our colleagues, are supporting organizations addressing the humanitarian needs of all • Donations to IFRC and UNIC
Slide 12: Outstanding growth in chocolate
Highlights Half-Year Results 2021/22 Outstanding growth in chocolate Cocoa FY 2019/20 FY 2020/21 HY 2021/22 Chocolate -2.0% +4.6% +8.7% +18.4% +4.0% +8.4% +8.9% +8.0% +8.5% +8.2% +6.0% +2.7% +1.9% +10.2% +21.2% +9.9% +2.5% +7.7% +2.5% +9.4% +9.6% +10.2% -5.5% -5.5% +2.5% -14.6% -13.1% -3.9% -0.2% -4
Slide 13: All key growth drivers contributing
Highlights Half-Year Results 2021/22 All Key growth drivers contributing % of total % volume growth Group volume vs. prior year 38% Emerging +8.7% Markets Key growth drivers 34% Outsourcing, crucial to continuously +7.3% Long-term Partnerships outperform the market 13% Gourmet & +29.5% Specialties 1
Slide 14: Key milestones
Highlights Half-Year Results 2021/22 Key milestones October 2021 November 2021 Inauguration of ‘The Global Chocolate Box’ world’s decorations December 2021 largest and most brand Mona September 2021 sustainable chocolate Lisa entering 5th Forever warehouse Mexico, its Chocolate Extension of 50th mar
Slide 15: Great acknowledgment of our recent innovations
Highlights Half-Year Results 2021/22 Great acknowledgment of our recent Innovations Riding the wave of... • ...plant-based with the launch of Callebaut NXT, the next generation of chocolates for all vegan, plant-based, lactose-free & dairy-free delights • …intense indulgence with continued roll-out
Slide 16: Financial Review
FINANCIAL REVIEW Half-Year Results 2021/22 Ben De Schryver, CFO 16 Half-Year Results 2021/22 Roadshow presentation
Slide 17: Solid profitability and continued good cash generation
Financial review – Key figures Solid profitability and continued good Cash generation Change in % Group performance (in CHF million) HY 2021/22 in local currencies in CHF Sales volume (in tonnes) 1,164,749 n/a 8.7% Sales revenue 4,030.3 16.5% 15.8% Gross profit 606.4 7.2% 6.5% EBIT reported 330.9 12
Slide 18: Strong performance in chocolate, Global Cocoa bottomed out
Financial review – Key performance indicators by Region Strong performance in chocolate, Global Cocoa bottomed out Group Sales volume: EMEA 1,164,749 Americas 537,542 tonnes 318,133 46% 27% Global Cocoa Asia Pacific 227,951 81,123 20% 7% EMEA Americas Asia Pacific Global Cocoa HY volume +11.6% +6.3%
Slide 19: Positive volume and mix effect reduced by negative impact of cocoa
Financial review - Gross profit Positive volume and mix effect reduced by negative impact of Cocoa and impairment of financial assets In CHF million +7.2% +7.2% 5 49 610 -8 606 -5 -4 569 Gross Profit Volume Mix Cocoa Impairment Gross Profit FX Gross Profit HY 2020/21 of financial HY 2021/22, HY 2021
Slide 20: Cocoa Combined Ratio development
Financial review Cocoa Combined Ratio development European Combined Ratio – 6-month forward ratio Combined Ratio gives 4.50 broad indication… Shows general high level 4.00 industry direction, assuming 3.50 Combined many variables are fixed. Ratio 3.4x 3.00 However… 2.50 Many variables are not fixed
Slide 21: Operating profit (EBIT) recurring up +8.0%
Financial review - EBIT bridge Operating profit (EBIT) recurring up +8.0% thanks to strong volume growth and modest cost increase In CHF million +8.0% 41 13 331 320 318 -17 -2 297 EBIT Gross Profit SG&A, Others EBIT FX EBIT Non- EBIT HY 2020/21 HY 2021/22, in HY 2021/22 recurring HY 2021/22 LC recur
Slide 22: Net profit recurring up +3.6%
Financial review - EBITDA to Net profit bridge Net profit recurring up +3.6% thanks to strong volume and sound profitability In CHF million 446 ETR HY 2021/22: 17.4% (recurring 17.7%) 331 HY 2020/21: 17.3% -116 +3.6% (PY -109) -59 225 1 -13 213 206 (PY -48) -47 (PY -43) EBITDA Dep. & EBIT Financial
Slide 23: Raw material price development
Financial review Raw material price development Change HY 2021/22 180% (average): Milk powder +46.0% 160% 140% 120% 100% Sugar World +23.3% 80% Sugar EU +31.6% Cocoa beans +2.9% 60% 40% 20% 0% Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Feb-2022
Slide 24: Continued good cash generation thanks to good working capital management
Financial review - Free cash flow Continued good cash generation thanks to good working capital management In CHF million +6,9% 434 406 -95 (PY -60) -68 167 -300 (PY -59) (PY 163) (PY -346) -104 0 (PY -146) -133 (PY -183) EBITDA EBITDA Change in Interest and CAPEX Others FCF RMI Beans FCF 6m Feb’21
Slide 25: Continued net debt reduction
Financial Review – Net debt Continued Net debt reduction In CHF million 1,594 133 15 (PY 1,753) -1,033 165 1,281 -101 662 561 299 454 262 208 Net Debt Dividends Free Cash FX/Other Net Debt Adjustment Adjusted Adjusted Aug’21 & Treasury Flow Feb’22 for beans Net Debt Net Debt shares (RMI) Feb’22 Feb’
Slide 26: Strong balance sheet
Financial review - Key figures Strong Balance sheet (in CHF million) Feb’22 Aug’21 Feb’21 Net working capital 1,599 1,242 1,579 Non-current assets 2,934 2,978 2,921 Total assets 7,428 7,244 7,435 Net debt 1,594 1,281 1,753 Adj. Net debt1 561 547 662 Shareholders’ equity 2,696 2,683 2,478 ROIC 11.7%
Slide 27: Strategy & Outlook
STRATEGY & OUTLOOK Half-Year Results 2021/22 Peter Boone, CEO 27 Half-Year Results 2021/22 Roadshow presentation
Slide 28: Consistent long-term strategy
Strategy & Outlook Consistent long-term strategy 28 Half-Year Results 2021/22 Roadshow presentation
Slide 29: Continued drive for long-term success
Strategy Continued drive for long-term success Expansion Innovation Cost Leadership Continue to broaden our reach in Leverage our global scale to roll- Continuously improve operational Gourmet: out innovative concepts and efficiency: • By expanding into new markets solutions: • To better balance pro
Slide 30: Sustainability is at the heart of our long-term strategy
Strategy - ESG Sustainability is at the heart of our long-term strategy ● Sustainability has always been an integral part of Barry Callebaut’s DNA. ● Since 2016, Forever Chocolate is our plan to make sustainable chocolate the norm. ● We report on the progress of independently assessed time bound, me
Slide 31: Confident to deliver on mid-term guidance
Outlook Confident to deliver on mid-term guidance Our strong team, our global footprint and our cost- plus model make us confident that we can deliver on our mid-term guidance in a continued volatile market environment. Mid-term guidance 2020/21 to 2022/23, on average per annum: • 5-7% volume growth
Slide 32: Capital Market Day 2022 invitation
We look forward to welcoming you to our CapitalMarkets Capital Market Day 2022 on May 11, 2022 at our Headquarters in Zurich! 32 Half-Year Results 2021/22 Roadshow presentation