Tate & Lyle PLC · LSE:TATE
Tate & Lyle — Shareholder Meeting (July 2021)
27 slides from Tate & Lyle's shareholder meeting presentation, Jul 29, 2021
Slide 1: Presentation for Tate & Lyle PLC's Annual General Meeting on 29 July 2021
Presentation for Tate & Lyle PLC’s Annual General Meeting on 29 July 2021
Slide 2: Annual General Meeting, 2021 – Gerry Murphy, Chairman
Annual General Meeting, 2021 Gerry Murphy Chairman 2
Slide 3: Agenda
Gerry Murphy, Chairman Nick Hampton, Chief Executive AGENDA Chairman’s Highlights Business Review Questions and Answers AGM Resolutions 3
Slide 4: Chairman's Highlights
Year ended 31 March 2021 Chairman’s Highlights • Purpose-led response to Covid-19 • Strong financial, operating and strategic progress • Re-positioning company as a focused food and beverage solutions business • Ambitious new targets to combat climate change and progress diversity • Recommending a 5
Slide 5: Business Review – Nick Hampton, Chief Executive
Year ended 31 March 2021 Business Review Nick Hampton Chief Executive 5
Slide 6: Living our purpose in a year like no other
Year ended 31 March 2021 Living our purpose in a year like no other Colleagues Customers Communities 6
Slide 7: Overview
Year ended 31 March 2021 Overview • Robust performance demonstrates resilience, quality and agility of business • Food & Beverage Solutions delivers strong top-line and bottom-line growth • Primary Products resilient earnings benefiting from record year of Commodities profits • Acquisition of stevia
Slide 8: Financial delivery
Year ended 31 March 2021 Financial delivery Food & Beverage Solutions revenue +6%* Adjusted profit before tax +6%* Food & Beverage Solutions profit1 +12%* Adjusted diluted earnings per share +12%* Sucralose profit1 (9)%* Adjusted free cash flow +£3m Primary Products profit1 +5%* Full year dividend +
Slide 9: Strategic delivery
Year ended 31 March 2021 Strategic delivery New Products New Business Pipeline 1 Revenue Value2 SHARPEN +21% +12% ACCELERATE Acquisitions Productivity Completed Benefits 2 US$37m SIMPLIFY 1 Constant currency 2 Estimated revenue value probability adjusted 9
Slide 10: Delivering on our priorities
Year ended 31 March 2021 Delivering on our priorities Our purpose of Improving Lives for Generations Priorities at the centre of our Covid-19 response Look after Continue • Strong focus on employee health and wellbeing our colleagues to progress and communities strategy • Global and local pandemic r
Slide 11: Good progress on 2025 purpose targets and UN SDG priorities
Year ended 31 March 2021 Good progress on 2025 purpose targets and UN SDG priorities Supporting Healthy Living Building Thriving Communities Improving nutrition 2025 target: 9m Progressing equity, diversity and inclusion 2025 target: 50% 1.8m tonnes of sugar removed by our low- and no-calorie sweete
Slide 12: Good progress on 2030 sustainability targets and UN SDG priorities
Year ended 31 March 2021 Good progress on 2030 sustainability targets and UN SDG priorities Caring for our Planet Air 2030 target: 30% Waste 2030 target: 100% 7% absolute reduction in greenhouse gas emissions (Scope 1 and 2)1 69% waste beneficially used Water 2030 target: 15% Agriculture Commitment:
Slide 13: Outlook
Year ending 31 March 2021 Outlook Outlook for the year ending 31 March 2022 Despite the continuing impact of the Covid-19 pandemic, we expect: • Food & Beverage Solutions to deliver another year of progress • Sucralose to see further modest pricing pressure • In Primary Products, Sweeteners and Star
Slide 14: Delivering on investment case
Three years ending 31 March 2021 Delivering on investment case Attractive shareholder returns Earnings per share1,2,3 Return on Capital Employed1,3 Dividend3 Accelerate growth Improve returns Maintain progressive dividend policy 8% +5bps 2.4% CAGR average p/yr CAGR 30.8p 61.2p 17.5% 29.4p 29.6p 57.8
Slide 15: Transaction highlights
Announcement on 12 July 2021 Transaction highlights þ • Tate & Lyle to focus on its higher growth Food & Beverage Solutions (FBS) business RE-POSITIONS TATE & LYLE • Intention to accelerate innovation through a step-up in R&D investment and solutions development AS A GROWTH-FOCUSED FOOD SOLUTIONS BU
Slide 16: Strategic rationale for Tate & Lyle
Announcement on 12 July 2021 Strategic rationale for Tate & Lyle • Re-positions Tate & Lyle as a global food and beverage solutions business focused on faster growing speciality markets • Accelerates opportunity to benefit from growing global consumer demand for healthier food and drink • Creates th
Slide 17: Attractive organic growth augmented by accretive M&A
Announcement on 12 July 2021 Attractive organic growth augmented by accretive M&A Ambition for 5 years following completion Organic revenue Operating margin At least Mid-single digit 50 to 100 bps percent growth per annum expansion per annum Organic return on Further acceleration capital employed th
Slide 18: Capital allocation to prioritise growth opportunities and drive shareholder value
Announcement on 12 July 2021 Capital allocation to prioritise growth opportunities and drive shareholder value • Targeting zero leverage on completion providing flexibility to fund growth Capital allocation framework MAINTAIN STRONG BALANCE SHEET • Forward leverage to be consistent with maintaining
Slide 19: Transaction details
Announcement on 12 July 2021 Transaction details • NewCo will be an independent and separate business with a standalone management team GOVERNANCE • KPS has majority Board voting rights and operational control; Tate & Lyle will cease to consolidate NewCo AND STRUCTURE • Tate & Lyle to appoint two of
Slide 20: Summary
Year ended 31 March 2021 Summary • Purpose-driven, customer-focused business • Good strategic progress • Productivity and cost discipline • Cash generation and strong balance sheet • Consistent delivery of investment case • Proposed transaction to create two stronger businesses 20
Slide 21: Questions
Questions 21
Slide 22: Question 1
Question 1 I understand you are selling the sweetener division, this is a total mismanagement of the company. Answer The proposed transaction will transform Tate & Lyle into a global speciality food and beverage solutions business, creating the opportunity to step-up investment in R&D and innovation
Slide 23: Question 2
Question 2 May I request if Tate & Lyle can produce a summary company report for elderly and who have no computer access. I own the shares for income and read the report to keep dementia away. Answer The Annual Report contains key highlights and summary pages which explain how Tate & Lyle has perfor
Slide 24: Question 3
Question 3 Can you confirm that when outbreaks of Covid-19 occurred they were reported to the authorities (e.g. through RIDDOR in the UK?) Answer In every country in which we operate we follow the local regulations. At the outset of the pandemic, every Tate & Lyle facility formed a local pandemic te
Slide 25: Question 4
Question 4 We noted that contractor hours were down 18 per cent this year as a result of Covid-19 and there have been concerns expressed by the TUC and others that contractors in the food processing sector have struggled to access statutory sick pay. Best practice would be to work with suppliers of
Slide 26: AGM Resolutions
AGM RESOLUTIONS Resolution Resolution 1. Report and Accounts 14. Re-appoint auditors 2 Remuneration Report 15. Approve auditors’ remuneration 3. Approve final dividend 16. Authority to make political donations 4. Re-elect Dr Gerry Murphy 17. Authority to allot ordinary shares 5. Re-elect Nick Hampto
Slide 27: Thank you
Thank you TATESLYLE | 7%