Barry Callebaut AG · SIX:BARN
Barry Callebaut — H1 2003/04 Earnings Presentation
30 slides from Barry Callebaut's earnings presentation, Apr 1, 2004
Slide 1: Half-year results 2003/04
Half-year results 2003/04 Analysts’ and Media Conference April 1, 2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 1
Slide 2: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements Forward-looking statements Any information given on these slides as well as during the conference has been prepared by Barry Callebaut solely for the use at this analyst conference. Certain statements contained therein regarding the business of Barry Cal
Slide 3: Agenda
Agenda X Highlights half-year results 2003/04 X Financial results APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 3
Slide 4: Solid sales and earnings growth in HY 2003/04
Solid sales and earnings growth in 1 HY 2003/04 X Strong growth X Sales revenues up 15% to CHF 2.2 bn X EBIT at CHF 149.8 m, up 15% X Net profit (PAT) increased 10% to CHF 83.6 M X Higher growth in Q2 versus Q1 in all Business Units1) X First-time consolidation of Brach’s and Luijckx 1) Sales Volume
Slide 5: Higher growth in Q2
Higher growth in Q2 Q2* Q1* Industrial Business Segment (Volumes) Cocoa 3.2 % - 5.9 % Food Manufacturers 1.3 % -1.3 % (like-for-like**) 4.7% 1.9% Food Service/Retail Business Segment (Sales Revenues) Gourmet & Specialties 22.2 % 13.1 % Consumer Products 51.8 % 40.4 % * Compared to equivalent prior-y
Slide 6: EBIT growth supported by both business segments
EBIT growth supported by both business segments Industrial Business Food Service / Retail Business X Cocoa X Gourmet & Specialties X Food Manufacturers X Consumer Europe X Consumer North America Sales revenues CHF m 1,128.2 Sales revenues CHF m 1,071.1 Sales volume Tonnes 331,027 EBIT 1HY 2003/04 CH
Slide 7: Industrial Business Segment: Solid sales growth
Industrial Business Segment Solid sales growth... Cocoa X Second quarter saw increased cocoa sales volume according to plan X Sales revenue for HY 2003/04 down by 7.2% to CHF 272.3 m due to lower cocoa bean prices and weak USD, against a volume decrease of 1.7% Food Manufacturers X Nominal sales vol
Slide 8: Industrial Business Segment: substantial EBIT growth
Industrial Business Segment - …substantial EBIT growth... .... as well as EBIT/tonne increase: X 16.2% EBIT growth, both Cocoa & Food Manufacturers contributing X 16.6% EBIT/tonne increase to CHF 295 from CHF 253 X Group wide pricing model pays off X Ongoing tight cost control and improved operation
Slide 9: Industrial Business Segment: First Half 2003/04
Industrial Business Segment: First Half 2003/04 (in CHF m) Change in % 6-months 6-months 2003/04 2002/03 Sales revenue 0.7 % 1,128.2 1,120.1 Cocoa -7.2 % 272.3 293.5 Food Manufacturers 3.5 % 855.9 826.6 Sales volume (tonnes) -0.4 % 331,027 332,439 Cocoa -1.7 % 61,077 62,127 Food Manufacturers -0.1 %
Slide 10: Food Service/Retail Business Segment: Strategy implementation on its way
Food Service/Retail Business Segment: Strategy implementation on its way Gourmet & Specialties X Move to higher value added products paying off X Solid EBIT growth X Continued change in product mix (fewer CLB & ingredient products as well as Luijckx acquisition) X Sales revenue for HY 2003/04 up 17.
Slide 11: Food Service/Retail Business Segment: Further building the consumer platform
Food Service/Retail Business Segment: Further building the consumer platform Europe X Restructuring on track X Rebranding Sarotti and launch as umbrella brand at ISM 2004 X Further steps toward focused factory setup North America X Range of innovative, higher-margin chocolate products in pipeline X
Slide 12: Food Service / Retail Business Segment: First Half 2003/04
Food Service / Retail Business Segment: First Half 2003/04 (in CHF m) Change in % 6-months 6-months 2003/04 2002/03 Sales revenue 36.2 1,071.1 786.3 Gourmet & Specialties 17.2 292.7 249.7 Consumer Products 45.1 778.4 536.6 Operating profit (EBIT) 20.2 80.2 66.7 EBIT/Sales Revenues 7.5 % 8.5 % APRIL
Slide 13: Agenda
Agenda X Highlights half year results 2003/04 X Financial results APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 13
Slide 14: Financial highlights first half 2003/04
Financial highlights first half 2003/04 (in CHF mio.) % change 6-months 6-months 2003/04 2002/03 Sales revenue 15.4 2,199.3 1,906.4 in local currencies 12.3 2,141.0 EBIT 14.9 149.8 130.4 in local currencies 10.0 143.5 EBIT per tonne 4.7 CHF 284.0 CHF 271.3 in local currencies 0.3 CHF 272.1 Net profi
Slide 15: Financial summary first half 2003/04
Financial summary first half 2003/04: X Sales revenue up 15% growing faster than sales volume, - sales volume growth Q2 (13.1%) outpacing Q1 (7.1%) X Gross profit increased 33.5% to CHF 817.7 m due to higher value added businesses of Brach’s and Luijckx as well as price increases, - Gross profit/ton
Slide 16: Sales revenue reconciliation HY 2002/03 – HY 2003/04
Sales revenue reconciliation HY 2002/03 – HY 2003/04 208 2,199 (CHF m) 58 1,906 -47 74 HY Sales Cocoa Volumes & Currency Acquisitions HY Sales Revenues price Margins (net)1) Revenues 02/03 03/04 + - + 242 2,199 1,906 29 43 - 21 HY Sales Cocoa Food Gourmet & Consumer HY Sales Revenues Manufacturers S
Slide 17: Increasing share of consumer business
Increasing share of consumer business Net sales revenue by business units 2001/02 2002/03 2003/04 (full year) (full year) (half year) 16% 13% 13% 7% 45% 39% 53% 25% 36% 24% 17% 12% Gourmet & Specialties Consumer Products Cocoa Food Manufacturers APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND
Slide 18: EBIT: Q2 showing again solid performance
EBIT: Q2 showing again solid performance in CHF mio. +15% 100 92 79 80 67 +15% 58 60 51 46 38 38 40 31 32 20 0 Q1 Q2 Q3 Q4 2001/02 2002/03 2003/04 APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 18
Slide 19: PAT growth impacted by incremental financial items
PAT growth impacted by incremental financial items* – for the last time Fiscal Year 2003/04 Q1 Q2 Q3 Q4 incremental incremental incremental financial items financial financial CHF 6.8 m** items items incremental CHF 0** CHF 0** financial items CHF 5.8 m** EBIT growth EBIT growth CHF 12.2 m** CHF 7.2
Slide 20: Balance sheet ratios improved
Balance sheet ratios improved 02/28/04 08/31/03 Balance sheet Debt to equity ratio 134.2% 135.7% Solvency ratio 27.2% 28.0% Net debt / EBITDA 2.9x 3.1x Interest cover ratio 4.3x 4.2x APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 20
Slide 21: Cash flow statement
Cash flow statement (in CHF mio.) 2003/04 2002/03 Cash flow statement first half 2003/04 half year half year Operating cash flow before working capital changes 154.4 137.6 Change in net working capital (45.1) (172.7) Net cash flow from operations 109.3 (35.1) Investing activities (37.1) (44.8) APRIL
Slide 22: Performance targets through 2005/06
Performance targets through 2005/06* X Top line growth (organic) of 5% on average - more than twice expected market growth X EBIT growth on average in the mid-teens, mainly achieved by: Year-on-year efficiency gains announced improvements on the consumer side (full impact of Stollwerck restructu
Slide 23: Barry Callebaut - summary
Barry Callebaut - summary The only fully integrated chocolate company from the bean to the shelf Strong focus on innovation – about 30% of sales from products developed over the last three years Move to higher value added products for all customer segments increases earnings power APRIL 1,2004 HALF-
Slide 24: Back-up slides
Back-up slides APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 24
Slide 25: Net sales revenue by geography
Net sales revenue by geography 2001/02 2002/03 2003/04 (full year) (full year) (half year) Americas Americas RoW 21% RoW RoW 26% Americas 7% 7% 6% 27% Europe Europe Europe 66% 72% 68% APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 25
Slide 26: Key figures - Income statement
Key figures - Income statement (CHF mio.) in % of 2003/04 in % of 2002/03 revenues half year revenues half year Sales revenues 100.0 2,199.3 100.0 1,906.4 Material consumed 62.8 (1,381.6) 67.9 (1,294.1) Gross Profit 37.2 817.7 32.1 612.3 Ohter operating expenses 30.4 (667.9) 25.3 (481.9) Operating p
Slide 27: Cocoa price development
Cocoa price development London 2nd month Sep 2000 – Mar 2004 Source: Telerate APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 27
Slide 28: Cocoa price development
Cocoa price development London 2nd month 1984-2004 APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘ AND MEDIA CONFERENCE 28
Slide 29: Trading history – share price performance
Trading history – share price performance 120% 100% B A RRY CA LLE B A UT A G S P I S W IS S P E RF O RM A NCE IX S P I S M L & M ID CO M P INDE X 80% 60% 40% 20% 0% -20% -40% S ep 02 Nov 02 Jan 03 M rz 03 M ai 03 Jul 03 S ep 03 Nov 03 Jan 04 M rz 04 APRIL 1,2004 HALF-YEAR RESULTS 2003/04, ANALYSTS‘
Slide 30: Trading history – share price performance and daily volume
Trading history – share price performance and daily volume Barry-Callebaut share price and volume Share price in % Evolution from September 02, 2002 to March 31, 2004 Volume 120% 30000 100% 25000 80% 20000 60% 40% 15000 20% 10000 0% 5000 -2 0 % 0 -4 0 % S ep 02 Nov 02 Ja n 0 3 M rz 0 3 M ai 03 Ju l