Barry Callebaut AG · SIX:BARN
Barry Callebaut — HY 2020/21 Earnings Presentation
31 slides from Barry Callebaut's earnings presentation, Apr 22, 2021
Slide 1: Half-Year Results 2020/21
Half-Year Results 2020/21 Media & Analyst Conference April 22, 2021
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: Agenda
AGENDA Highlights Half-Year Results 2020/21 Antoine de Saint-Affrique, CEO Financial Review Half-Year Results 2020/21 Ben De Schryver, CFO Strategy & Outlook Antoine de Saint-Affrique, CEO Questions & Answers CEO and CFO 3 Half-Year Results 2020/21 Media and Analyst Conference
Slide 4: Highlights
HIGHLIGHTS Half-Year Results 2020/21 Antoine de Saint-Affrique, CEO 4 Half-Year Results 2020/21 Media and Analyst Conference
Slide 5: CEO succession: Peter Boone to succeed Antoine de Saint-Affrique
Governance CEO succession: Peter Boone to succeed Antoine de Saint-Affrique as of September 1, 2021 Peter Boone (born 1970, Dutch national) is President of Antoine de Saint-Affrique is CEO of Barry Callebaut Region Americas since September 2017, and a member of since October 2015. the Executive Comm
Slide 6: Changes in the Executive Committee
Governance Changes in the Executive Committee Steve Woolley to become President of Region Americas as of September 1, 2021 Steve Woolley (born 1968, US national) currently serving as Vice President & General Manager Global Accounts, in which role he is responsible for the partnerships with the Group
Slide 7: Continued volume recovery and solid profitability
Highlights Half-Year Results 2020/21 Continued volume recovery and solid profitability Sales volume down -2.9%, continued recovery in second quarter (-1.3%) Sales revenue of CHF 3.5 billion, flat at 0.0% in local currencies (-7.5% in CHF) Operating profit (EBIT) of CHF 296.7 million, up +3.8%1 in lo
Slide 8: Continued recovery in Chocolate
Highlights Half-Year Results 2020/21 Continued recovery in Chocolate Cocoa FY 2019/20 HY 2020/21 FY 2018/19 Chocolate +5.1% -2.0% -2.9% +10.6% +8.2% +10.6% +5.3% +10.2% +3.0% +2.5% +3.1% +10.7% +1.7% +7.7% +2.5% -4.3% -4.3% +4.3% +5.9% -1.3% +2.9% +2.5% -14.3% -5.5% -5.5% -2.4% -0.9% -14.6% -13.1% -
Slide 9: Key growth drivers: Emerging Markets and Outsourcing lead the recovery
Highlights Half-Year Results 2020/21 Key growth drivers: Emerging Markets and Outsourcing lead the recovery % of total % volume growth Group volume vs. prior year 38% +2.9% Emerging excl. Cocoa: Markets +6.1% Key growth drivers 34% Outsourcing, crucial to continuously +1.8% Long-term Partnerships ou
Slide 10: Key milestones in the first six months
Highlights Half-Year Results 2020/21 Key milestones in the first six months October 2020 Ramp-up of long-term outsourcing agreement with Groundbreaking for new November 2020 leading Australian snacking cocoa sourcing facility in Inauguration of new September 2020 company for supply of 100% Duran, Ec
Slide 11: Innovation
Highlights Half-Year Results 2020/21 Innovation Riding the wave Vegan/Dairy-free: Opening of our first fully segregated dairy-free production facility in Norderstedt, Germany Caramel Doré is now covering the ‘Magnum Double Gold Caramel Billionaire’ Ruby continues to conquer the market with new appli
Slide 12: Financial Review
FINANCIAL REVIEW Half-Year Results 2020/21 Ben De Schryver, CFO 12 Half-Year Results 2020/21 Media and Analyst Conference
Slide 13: Continued volume recovery and solid profitability
Financial review – Key figures Continued volume recovery and solid profitability Change in % Group performance (in CHF million) HY 2020/21 in local currencies in CHF Sales volume (in tonnes) 1,071,603 n/a -2.9% Sales revenue 3,481.5 0.0% -7.5% Gross profit 569.2 0.0% -6.3% EBIT reported 296.7 6.5% -
Slide 14: Americas and Asia Pacific leading the volume recovery
Financial review – Key performance indicators by Region Americas and Asia Pacific leading the volume recovery, solid profitability in all chocolate Regions Group Sales volume: EMEA Americas 481,862 1,071,603 299,253 45% tonnes 28% Asia Pacific Global Cocoa 71,335 219,153 7% 20% EMEA Americas Asia Pa
Slide 15: Resilient mix and cocoa business mitigate COVID-19 volume impact
Financial review - Gross profit Resilient mix and cocoa business mitigate COVID-19 volume impact In CHF million 0.0% 607 +12 607 -18 +6 569 -38 Gross Profit Volume Mix Cocoa Gross Profit FX Gross Profit HY 2019/20 HY 2020/21, HY 2020/21 in LC 15 Half-Year Results 2020/21 Media and Analyst Conference
Slide 16: Cocoa Combined Ratio development
Financial review Cocoa Combined Ratio development European combined ratio - 6 month forward ratio Combined ratio gives broad indication… 4.00 Shows general high level 3.50 Combined industry direction, assuming ratio 3.3x many variables are fixed. 3.00 However… 2.50 Many variables are not fixed e.g.
Slide 17: Operating profit (EBIT) up +3.8% against prior-year recurring
Financial review - EBIT bridge Operating profit (EBIT) up +3.8% against prior-year recurring thanks to resilient Gross profit and strict cost management In CHF million +3.8% 323 12 8 312 0 -26 304 297 EBIT HY Factory EBIT HY Gross profit SG&A EBIT HY FX EBIT HY 2019/20 closure costs 19/20, 2020/21,
Slide 18: Net profit +6.9% compared to prior-year recurring
Financial review - EBITDA to Net profit bridge Net profit +6.9% compared to prior-year recurring thanks to solid profitability and lower financing cost and taxes In CHF million 406 Effective Tax Rate: HY 20/21: 17.4% HY 19/20: 19.2%1 +6.9% -2.8% 297 (in CHF) -109 (PY -110) 21 226 -48 206 212 (PY -50
Slide 19: Raw material price development
Financial review Raw material price development 1.8 1.6 1.4 Change HY 2020/21 1.2 (average): Milk powder -10.6% 1 Cocoa beans -9.4% 0.8 Sugar EU -2.0% Sugar World +12.0% 0.6 0.4 0.2 0 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Cocoa beans Dairy Sugar world Sugar EU
Slide 20: Continued focus on working capital management supporting strong Free cash flow
Financial review - Free cash flow Continued focus on working capital management supporting strong Free cash flow generation In CHF million -3.6% 421 406 -60 (PY -2092) -59 163 -346 (PY -73) (PY -18) (PY -341) -138 15 (PY -144) -183 (PY -359) EBITDA EBITDA Change in Interest and CAPEX Others FCF RMI
Slide 21: Net debt further reduced
Financial Review – Net debt Net debt further reduced In CHF million 1,753 73 (PY 1,981) -1,091 183 131 1,366 -220 882 662 Net debt Dividends Free FX impact Net debt Adjustment Adjusted Adjusted Aug’20 & Treasury cash flow / Other Feb’21 for beans Net debt Net debt shares (RMI) Feb’21 Feb’20 21 Half-
Slide 22: Balance sheet
Financial review - Key figures Balance sheet (in CHF million) Feb’21 Aug’20 Feb’20 Net working capital 1,579 1,192 1,838 Non-current assets 2,921 2,800 2,854 Total assets 7,435 7,141 7,550 Net debt 1,753 1,366 1,981 1 Adjusted Net debt 662 594 882 Shareholders’ equity 2,478 2,354 2,403 ROIC 9.2% 10.
Slide 23: Strategy & Outlook
STRATEGY & OUTLOOK Half-Year Results 2020/21 Antoine de Saint-Affrique, CEO 23 Half-Year Results 2020/21 Media and Analyst Conference
Slide 24: Consistent long-term strategy – sharpened business model
Strategy & Outlook Consistent long-term strategy – sharpened business model management COVID-19 24 Half-Year Results 2020/21 Media and Analyst Conference
Slide 25: Investing in future growth and sharpening business model
Strategy Investing in future growth and sharpening business model Expansion Innovation Unlock opportunities in captive markets Leading on trends New chocolate factory in Novi Sad, Serbia Vegan/Dairy-free (operational 2021) Creating new experiences Broaden and deepen reach Wholefruit Chocolate launch
Slide 26: 26 Half-Year Results 2020/21 Media and Analyst Conference
26 Half-Year Results 2020/21 Media and Analyst Conference
Slide 27: Investing in future growth and sharpening business model
Strategy Investing in future growth and sharpening business model Cost Leadership Sustainability Drive simplification and digitalization of business Forever Chocolate continued progress and impact in processes… unprecedented times Leveraging on global SAP and salesforce platforms Groundbreaking inno
Slide 28: Diversity & Inclusion
Strategy Diversity & Inclusion It’s about growth As a company, as individuals, as teams Attracting and retaining talents wherever they are It’s about inclusion United by our values Nurturing a more inclusive environment for all It’s about equal opportunities for all Enabling everyone to be at their
Slide 29: Confident to come out of the crisis stronger and to deliver on mid-term guidance
Outlook Confident to come out of the crisis stronger and to deliver on mid-term guidance “Whilst the environment remains volatile, our continued focus on customers, our drive for new opportunities and our strong innovation pipeline, together with a sound balance sheet, make us confident that we are
Slide 30: Thank you!
BARRY ((}) CALLEBAUT
Slide 31: 31 Half-Year Results 2020/21 Media and Analyst Conference
31 Half-Year Results 2020/21 Media and Analyst Conference