Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Non-Deal Roadshow (July 2011)
35 slides from Barry Callebaut's roadshow presentation, July 2011
Slide 1: Barry Callebaut 9-month key sales figures 2010/11
Barry Callebaut 9-month key sales figures 2010/11 July 2011
Slide 2: Agenda
Agenda Company and Industry Overview First 9 months highlights Outlook July 2011 Barry Callebaut 9 months key sales figures 2
Slide 3: Barry Callebaut is present in all stages of the chocolate industry value chain
Barry Callebaut is present in all of the stages of the chocolate industry value chain Cocoa Cocoa beans Plantations 80% Cocoa liquor ~54% ~46% Cocoa powder Cocoa butter BC core activity + Sugar, Milk, others + Sugar, Milk, + Sugar, Milk, fats, others others Powder mixes Compound/Fillings Chocolate c
Slide 4: Barry Callebaut at a glance
Barry Callebaut at a glance FY-2010 Sales Volume by Region FY-2010 Sales Volume by Product Group Food Service Global Sourcing & / Retail Cocoa Customers 16% 27% Consumer Products 10% Asia Europe Gourmet 4% 58% & Specialties 10% Food Cocoa Manufacturers 16% 64% Americas 22% Industrial Customers 73% F
Slide 5: Barry Callebaut is the market leader in the open market
Barry Callebaut is the market leader in the open market Global Industrial Chocolate market in 2009 = 5,400,000 tonnes* (Long-term average annual market growth of approx 2-3%) Open market Integrated market Competitors Big 4 chocolate Others players 40% 49% 51% 80% Outsourced (long-term volumes) *BC e
Slide 6: Global leader in chocolate manufacturing
Global leader in chocolate manufacturing Barry Callebaut is one of the of the top three cocoa grinders and the largest manufacturer of industrial chocolate, with estimated market share of 40% of sales volumes in the open market for industrial chocolate Cocoa Grinders Open Market for Chocolate ADM
Slide 7: Our Strategy
Our Strategy “Heart and engine of the chocolate industry” Vision Chocolate expert and business partner of choice Number one chocolate company Expansion Sustainable, Strategic Innovation profitable pillars growth Cost leadership July 2011 Barry Callebaut 9 months key sales figures 7
Slide 8: Early movers in emerging markets
Expansion Early movers in emerging markets Ongoing selected investments in emerging markets are paying off Emerging markets in % of total sales volume (6 months figures) 2010/11 growth Poland: Line extension 21% +12.9% completed 20% 13% 17% 12% 14% 6% 13% +38.1% Mexico: Volume increased, 10% 2
Slide 9: Chocolate consumption is linked to income per capita
Chocolate consumption is linked to income per capita, growth to come from emerging markets 6.0 Chocolate consumption per capita (kg) 2010 EU 5.0 Russia Oceania Poland USA Eastern Europe 4.0 Argentina 3.0 2.0 Brazil 1.0 Aisa-Pacific World Peru Mexico Middle East Indonesia Peru South Africa Malaysia I
Slide 10: Outsourcing and Strategic Partner of choice
Expansion Outsourcing and Strategic Partner of choice Nestlé (February 2007) Barry Callebaut to acquire 100,000 MT production capacity from Nestlé in Italy and France Long term agreement for the supply of ca. 70,000 MT of chocolate and the production of some Nestlé consumer products Hershey (Apr
Slide 11: World's largest supplier of Gourmet & Specialties chocolate for artisanal customers
Expansion World‟s largest supplier of Gourmet & Specialties chocolate for artisanal customers Gourmet global market and BC presence Market Highly fragmented market with more Total= >CHF 3bn than 100‟000 end-customers Chocolate products Adjacent products CHF ~2bn sales CHF >1bn sales Three main s
Slide 12: Developments of our 6 strategic actions
Expansion Developments of our 6 strategic actions Gourmet & Specialties Products 1. Sharpen focus on two global brands Cacao Barry and Callebaut Centralization of brand management completed Regional brand Managers put in place in U.S. and Western Europe 2. Move from a product to a segment focus
Slide 13: Recognized innovation leader with focus on market trends
Innovation Recognized innovation leader with focus on market trends Sustainabilit Cost Focus Indulgence Permissibility Regulation Sustainability y& Transparenc Same Increasing Demand for Chocolate y Quality quality, interest for healthy alternatives Partner lower costs inclusions, alter- w
Slide 14: Barry Callebaut achieves cost leadership along the value chain
Cost Leadership Barry Callebaut achieves cost leadership along the value chain Raw Operational set-up Logistics & Sales & Materials & Manufacturing Supply Chain Distribution Benefits from Low factory costs Optimal supply Close partnership sourcing & per tonne chain network with customers processing
Slide 15: Truly global manufacturing footprint with production facilities in 26 countries
Truly global manufacturing footprint with 43 production facilities in 26 countries worldwide Thimister, Belgium Eupen, Belgium Chekhov, Russia Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK Kagerod, Sweden Ch
Slide 16: Ivory Coast – situation as of June 2011
Ivory Coast – situation as of June 2011 As a result of management‟s effective contingency planning, Barry Callebaut has been able to continue to supply all of its customers without interruption Risks Mitigation strategy Local presence and Ivory Coast is the world biggest cocoa producer Increas
Slide 17: Agenda
Agenda Company and Industry Overview First 9 months highlights Outlook July 2011 Barry Callebaut 9 months key sales figures 17
Slide 18: Global chocolate confectionery market in a recovery path
Global chocolate confectionery market in a recovery path 9 months Sep 2010 –May 2011(‘000 tonnes) Western Europe Eastern Europe USA -2.1% 7.3% 6.2% China 467 501 995 974 25.3% 748 2010 2011 705 2010 2011 32 40 2010 2011 2010 2011 Brazil 10.8% Total Top 15 countries 92 102 2010 2011 3.3% 2’290 2’365
Slide 19: Barry Callebaut growth momentum continued
Barry Callebaut growth momentum continued Key Sales Figures -9 months 2010/11 2.1% Europe • Western Europe growth flat vs. prior year, in a declining market. • Eastern Europe with double digit growth mainly Russia and Poland • Consumer volume growth has stabilized in Q3 2009/10 2010/11 Americas 10.0
Slide 20: Other developments
Other developments • On May 27th, Barry Callebaut achieved investment grade for the first time in history, with an upgrade from Ba1 to Baa3 by Moody„s • On June 15th, we successfully placed a EUR 250 million Bond with a tenor of 10 years and a coupon of 5.375%. • At the same time we renewed and amen
Slide 21: New outsourcing agreement - Turin
New outsourcing agreement - Turin • On June 27th, Barry Callebaut signed a long-term outsourcing agreement with Chocolates Turin for close to 10„000 tons. Expect to achieve in the near future 20,000 tons with Turin plus other third party customers • Acquisition of a production facility from Turin in
Slide 22: High raw material prices with increased volatility
High raw material prices with increased volatility Barry Callebaut “cost plus” model has proven to be robust Cocoa bean price (GBP/tonne) White Sugar average price (EUR/tonne) london n°5 (2nd position) EU white sugar Kingsman‘s estimate WE 2800 (spot prices) 1050 June 2011 2500 June 2011 1861 GBP/to
Slide 23: Main raw materials and business model
Main raw materials and business model Main raw materials Barry Callebaut business model BC sourced in 09/10: % of total raw material value Gourmet & 20% Consumer Cocoa 570 KT 51% price lists Products Dairy 125 KT 10% regular updates Sugar 480 KT 8% Oils and Fats 82 KT 4% 80% Cost Plus Other 27% 100g
Slide 24: Improved combined cocoa ratio
Cocoa processing profitability Improved combined cocoa ratio Cocoa powder-butter combined ratio* – European ratios 6 months forward against LIFFE 4.20 17 June 2011 3.55 Combined ratio 3.40 2.60 Powder ratio 1.80 Butter ratio 1.00 0.20 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 Jun Jun J
Slide 25: Sustainable and solid top-line and bottom-line growth over the last 5 years
BC‟s sustainable and solid top-line and bottom-line growth over the last 5 years Sales Volume EBIT CAGR CAGR + 7.5% + 8.9% 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Net profit* Economic Value Added CAGR +11.0% CAGR +10.1% EVA Notional Capital Charge* 2005 2006 2007 2008 2009 2010 2
Slide 26: Improved cashflow decisive for the growth speed
Improved cashflow decisive for the growth speed Cash flow analysis FY 2009/10 In CHFm Operational cash flow* Working Capital +1% +10% 355 1,037 1,010 965 317 921 884 297 273 238 2005/06 2006/07 2007/08 2008/09 2009/10 2005/06 2006/07 2007/08 2008/09 2009/10 Capital Expenditure Net Debt +6% -1% 250 1
Slide 27: Agenda
Agenda Company and Industry Overview First 9 months highlights Outlook July 2011 Barry Callebaut 9 months key sales figures 27
Slide 28: Financial targets confirmed
Outlook Financial targets confirmed Annual growth targets on average* for 2009/10 through 2012/13: Volumes: 6-8% EBIT: at least in line with volume growth * Our view for the 2009-2013 period reflects current economic forecasts for the markets we operate in as well as internal developments and
Slide 29: Barry Callebaut at a glance
Barry Callebaut at a glance World leader in high-quality cocoa and chocolate products. 40% global market share in the open industrial chocolate market Early mover in emerging markets Outsourcing & strategic partner of choice World‟s largest supplier of Gourmet & Specialties chocolate for art
Slide 30: Q&A
Q&A July 2011 Barry Callebaut 9 months key sales figures 30
Slide 31: West Africa is the world's largest cocoa producer – BC sources locally
West Africa is the world‟s largest cocoa producer – BC sources locally Total world harvest (10/11): 3 938 k MT others 12% In FY 2009/10 BC sourced Ecuador ~570,000 MT of cocoa beans, 4% Ivory Coast* thereof 65% directly from 33% Brazil* 5% farmers, cooperatives & local trade houses Cameroon* 6%
Slide 32: Investments support the growth of our business
Investments support the growth of our business In CHFm Additional growth IT 5% Upgrade / efficiency gains on existing sites Maintenance 4% 250 3% 3% 3% CAPEX as % of sales 170 153 144 145 115 2005/06 2006/07 2007/08 2008/09 2009/10 FY 2010/11 July 2011 Barry Callebaut 9 months key sales figures 32
Slide 33: BC share price development over last 5 years vs. relevant indexes
BC share price development over last 5 years vs. relevant indexes 1000 BARN.S = 835 900 800 ∆ 2006/11= +72.2% 700 600 500 400 300 200 Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun 2010 Jun 2011 BARN.S .SSHI .SX3E .SMIM Swiss Performance Dow Jones Euro Stoxx Swiss Market Index Mid Cap Index (Rebased) Food
Slide 34: Growth twice as fast as the market and improved profitability
Key Figures – H1 2010/11 Growth twice as fast as the market and improved profitability Change in % Change in % H1 H1 In local 2010/11 2009/10 currencies Sales volume [in tonnes] 7.1% 706'570 659'536 Sales revenue [CHF m] 13.2% 3.1% 2'737.9 2'656.5 CHF per tonne 5.7% -3.8% 3'875 4'028 Gross profit [C
Slide 35: Solid Financials with improvement of all key ratios
Balance Sheet – H1 2010/11 Solid Financials with improvement of all key ratios Change Feb 11 Feb 10 in % Total Assets [CHF m] -2.2% 3'979.1 4'068.0 Net Working Capital [CHF m] -13.5% 1'054.1 1'218.4 Non-Current Assets [CHF m] -3.3% 1'408.4 1'457.2 Net Debt [CHF m] -12.5% 956.2 1'093.4 Shareholders'