Tate & Lyle Plc · LSE:TATE

Tate & Lyle — FY2015 Earnings Presentation

37 slides from Tate & Lyle's earnings presentation, May 28, 2015

1. Slide 1: Results for the year ended 31 March 2015

   Results for the year ended 31 March 2015 London, 28 May 2015 © Tate & Lyle 2015

2. Slide 2: Cautionary Statement

   Cautionary Statement This Statement of full year results contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Tate & Lyle PLC. These statements and forecasts involve risk and uncertainty because they relate to events and depend up

3. Slide 3: Introduction

   Introduction  A very challenging year  Actions taken to address key issues and continue delivery of the strategy  SPLENDA® Sucralose being re-focused and re-structured  Bulk Ingredients strategically re-aligned to further reduce volatility  Underlying Speciality Food Ingredients business remain

4. Slide 4: Agenda

   Agenda 2015 Financial Results Nick Hampton New Supplementary Disclosure Framework Nick Hampton Strategy Update and Outlook Javed Ahmed © Tate & Lyle 2015 4

5. Slide 5: 2015 Financial Results

   2015 Financial Results Nick Hampton, Chief Financial Officer © Tate & Lyle 2015 5

6. Slide 6: Five Key Drivers of Year-on-Year Group Performance

   Five Key Drivers of Year-on-Year Group Performance Year ended 31 March 2015 Adjusted Performance impacted by 5 factors Operating Profit1 Impact SPLENDA® Sucralose £(43)m Operational and supply chain disruption £(20)m Bulk Ingredients Europe profitability2 £(13)m Lapping one-off benefits £(9)m (inclu

7. Slide 7: Financial results

   Financial results Year ended 31 March 2015 2015 2014 At constant £m, unless stated (£1=US$1.61) (£1=US$1.59) currency 1 Adjusted sales 2,694 3,147 (11%) Adjusted operating profit 2 - Speciality Food Ingredients 149 213 (29%) - Bulk Ingredients 133 172 (19%) - Central (35) (36) 5% Adjusted operating

8. Slide 8: Analysis of adjusted profit

   Analysis of adjusted profit Year ended 31 March 2015 2015 2014 £m Restated 1 Adjusted profit before tax 224 322 Adjusted for: Exceptional items: Business re-alignment - impairment and related costs (118) - Termination of distribution agreement (12) - Business transformation costs (12) (14) Amortisat

9. Slide 9: Speciality Food Ingredients Performance

   Speciality Food Ingredients Performance Year ended 31 March 2015 At constant Performance primarily impacted by two factors: £m, unless stated 2015 2014 currency  Significantly reduced SPLENDA® Sucralose Adjusted sales 1 908 983 (4%) profitability Adjusted operating profit2 149 213 (29%)  Supply ch

10. Slide 10: Bulk Ingredients Performance

    Bulk Ingredients Performance Year ended 31 March 2015 At constant Performance impacted by: £m, unless stated 2015 2014 currency  US Sweetener sales constrained by supply 1 Adjusted sales 1,786 2,164 (14%) chain disruption 2 Adjusted operating profit 133 172 (19%)  Volatility and lower pricing in c

11. Slide 11: Net Debt and Adjusted Cash Flows

    Net Debt and Adjusted Cash Flows Year ended 31 March 2015 Net Debt is £151m higher than at the start of the year £m Adjusted free cash flow of £66m (50) (37) (130) (47) (504) 247 (353) (47) (166) (5) 113 (29) FY14 PBITEA Exceptional Working Net Depreciat'n Capex Interest Dividends Net Acq' & Exchang

12. Slide 12: Actions taken to address key issues

    Actions taken to address key issues  New Global Operations group Strengthen executional  Enhance S&OP and planning processes capabilities  Embed improved performance management cycle  Pursue rigorous, value-based strategy Re-focus and re-structure  Consolidate manufacturing footprint into one f

13. Slide 13: New supplementary disclosure framework

    New supplementary disclosure framework © Tate & Lyle 2015 13

14. Slide 14: Disclosure model

    Disclosure model Communicating the performance of our business Purpose Forward Disclosure 1) Align disclosure to key Speciality Food Ingredients strategic growth drivers  3 geographic segments for business (excluding Sucralose and Food Systems) ‒ North America ‒ Asia Pacific and Latin America 2) Dr

15. Slide 15: New Disclosure framework - Pro-forma after Eaststarch re-alignment

    New Disclosure framework ‒ Pro-forma1 after Eaststarch re-alignment Year ended 31 March 2015 Speciality Food Ingredients Volume Adjusted Adjusted Adjusted % of SFI Growth Sales2 Operating Operating Adjusted Profit3 Margin Operating % £m £m % Profit SFI ex Food Systems and Sucralose: 1% 590 108 18% 7

16. Slide 16: Pro-forma impact of Eaststarch re-alignment

    Pro-forma1 impact of Eaststarch re-alignment Year ended 31 March 2015 Pro-forma £m, unless stated As reported Post Eaststarch Group adjusted sales2 2,694 2,593 3 Adjusted operating profit - Speciality Food Ingredients 149 151 - Bulk Ingredients 133 99 - Central (35) (35) 3 Group adjusted operating p

17. Slide 17: Strategy Update and Outlook

    Strategy Update and Outlook Javed Ahmed, Chief Executive Officer © Tate & Lyle 2015 17

18. Slide 18: Tate & Lyle evolving into a more SFI-focused business

    Tate & Lyle evolving into a more SFI-focused business FY15 Adjusted Operating Profit1 £282m Bulk Ingredients 47% SPLENDA® Sucralose 6% Speciality Food Ingredients (ex-SPLENDA® Sucralose) 47% Mix of Group profits improving Speciality Food Ingredients, excluding SPLENDA® Sucralose FY10 FY15 FY16E 32%

19. Slide 19: Bulk Ingredients significantly re-shaped

    Bulk Ingredients significantly re-shaped Bulk Ingredients/Sugars Estimated Bulk Ingredients North America provides a solid Adjusted Operating Profit Mix Adjusted Operating Profit Mix structural base FY10 FY16  Large, mature market Sugars North  Strong market positions 17% America 65%  Long-standi

20. Slide 20: Strong underlying Speciality Food Ingredients business

    Strong underlying Speciality Food Ingredients business Mix of Adjusted Operating Profit Key Growth Speciality Food Ingredients Drivers 100%  High quality product portfolio SPLENDA® Sucralose 89%  Leading positions in attractive -25% CAGR FY10-15 market segments  Technical and applications experti

21. Slide 21: Leading positions/deep expertise in attractive market segments

    Leading positions/deep expertise in attractive market segments Global Speciality Food Ingredients Leading Addressable Market c.US$42 billion1 market positions market (US$) Other #2 Speciality food starches 7% Texturants #2 Dairy stabilizers $9.2 billion 23% #2 Locust bean gum Growing at #1 Crystalli

22. Slide 22: Strong growth in Asia Pacific and Latin America

    Strong growth in Asia Pacific and Latin America New facilities established Growth in SFI excluding Sucralose and Food in Asia Pacific and Latin America FY11-15 Systems in Asia Pacific and Latin America FY11-15 Tate & Lyle Gemacom Tech (located in Guarani and Juiz de Fora ) Mexico City Laboratories a

23. Slide 23: Consumers driving demand for healthier products globally

    Consumers driving demand for healthier products globally Convenience Health and wellness ‘Natural’ ‘Free from’ Calorie Reduction Fibre enrichment ‘Clean Label’ Global product launches with calorie- Global product launches 1 in 4 new products launched globally reduced and/or sugar-reduced claim1,2 co

24. Slide 24: Pipeline focused on delivering healthier solutions for consumers

    Pipeline focused on delivering healthier solutions for consumers New Products launched from Innovation Pipeline since FY11 Volume Growth Volume Growth Sales Target % FY11-15 (CAGR) FY15 FY15 of SFI Sales +86% +98% £43m >10% Calorie reduction │ Sugar reduction │ Fat reduction │ Fibre enrichment │ Sod

25. Slide 25: Executional capabilities being strengthened

    Executional capabilities being strengthened  Improvements to global supply chain and planning processes and capabilities  New IS/IT system providing higher quality data and reporting  Enhanced Customer Relationship Management process  Strengthened management team © Tate & Lyle 2015 25

26. Slide 26: Outlook: A year of structural change and execution

    Outlook: A year of structural change and execution Strengthening the business  Re-align Eaststarch joint venture  Re-focus and re-structure SPLENDA® Sucralose Year ending  Bring new growth capacity for Speciality Food Ingredients on line 31 March 2016  Embed enhanced capabilities, systems and ne

27. Slide 27: Questions

    Questions © Tate & Lyle 2015 27

28. Slide 28: Appendix slides – financial support

    Appendix slides – financial support © Tate & Lyle 2015 28

29. Slide 29: Key Financial Indicators

    Key Financial Indicators Year ended 31 March 2015 £m, unless stated 2015 2014 Adjusted profit before tax1 224 322 2 Adjusted effective tax rate 21.2% 18.5% Adjusted diluted earnings per share1 37.7p 55.7p Adjusted free cash flow 66 227 Net debt (504) (353) Net debt/EBITDA1,3 1.3x 0.8x Interest cover

30. Slide 30: Adjusted profit before tax

    Adjusted profit before tax Year ended 31 March £m, unless stated 2014 Forex Activity 2015 - Speciality Food Ingredients 213 (5) (59) 149 - Bulk Ingredients 172 (7) (32) 133 - Central (36) - 1 (35) Adjusted operating profit1 349 (12) (90) 247 Adjusted net finance expense2 (27) 1 3 (23) 3 Adjusted pro

31. Slide 31: Reconciliation of Adjusted Information

    Reconciliation of Adjusted Information Year ended 31 March 2015 Continuing operations Year to 31 March 2015 Year to 31 March 2014 Adjusting 2 1 Adjusting 2 £m, unless stated Reported Adjusted Reported Adjusted items items Sales 2,356 338 2,694 2,754 393 3,147 Operating profit 33 214 247 251 98 349 N

32. Slide 32: Exchange Rates

    Exchange Rates Year ended £ 31 March 2015 31 March 2014 Change Closing rates US$ 1.49 1.67 (11)% Euro 1.38 1.21 14% Used to translate Balance Sheet Average rates US$ 1.61 1.59 (1)% Euro 1.28 1.19 (8)% Used to translate Income Statement © Tate & Lyle 2015 32

33. Slide 33: Exchange Sensitivity

    Exchange Sensitivity Year ended 31 March 2015 £m impact US$ EUR€ Speciality Food Ingredients 0.7 0.1 Bulk Ingredients 0.5 - Central 0.1 - 1 Impact on adjusted operating profit 1.3 0.1 Adjusted net finance expense2 (0.2) - 3 Impact on adjusted profit before tax 1.1 0.1 Estimated annual movement cause

34. Slide 34: Balance Sheet

    Balance Sheet 31 March 2015 After the adoption of IFRS11 (statutory basis) 31 March 31 March £m, unless stated 2015 2014 Goodwill, intangibles, fixed assets and investments 1,417 1,351 1 Working capital 360 373 Pension deficit (227) (220) Other provisions (21) (22) Other 33 28 Net operating assets 1

35. Slide 35: Change in Working Capital

    Change in Working Capital Year ended 31 March 2015 After the adoption of IFRS11 (statutory basis) £m, unless stated 2015 2014 Decrease in inventories 6 44 (Increase)/decrease in receivables (11) 37 (Increase)/decrease in US margin calls 2 (3) Increase/(decrease) in payables 1 (56) Movement in deriva

36. Slide 36: Debt Maturity Profile

    Debt Maturity Profile As at 31 March 2015 Average net debt in period 404 372 Debt maturity profile at 31 March 2015 Effective interest rate on gross debt 3.0% 3.4% 1000 At period end 900 1 800 Average maturity of total gross borrowings 4.2 yrs 3.9 yrs 700 Undrawn committed facilities 539 480 600 Cas

37. Slide 37: Adoption of IFRS11 – Joint Arrangements

    Adoption of IFRS11 – Joint Arrangements Year ended 31 March 2015 Adjusting items Exceptional Net Retirement Amort'n of Acq'd IFRS 11 £m, unless stated Reported Adjusted Items Benefit Interest Intangible assets Adjustment Sales 2,356 - - - 338 2,694 Operating profit 33 142 - 9 63 247 Net finance expe

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