Barry Callebaut AG · SIX:BARN
Barry Callebaut — Q1 2004/05 Earnings Presentation
29 slides from Barry Callebaut's earnings presentation, Jan 13, 2005
Slide 1: 3-month results 2004/05
3-month results 2004/05 Analysts’ and Media Call January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 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 call has been prepared by Barry Callebaut solely for the use at this analyst call. Certain statements contained therein regarding the business of Barry Call
Slide 3: Agenda
Agenda X Highlights 3-month results 2004/05 and business review X Financial results January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 3
Slide 4: Highlights first quarter 2004/05
Highlights first quarter 2004/05 X Satisfactory result in light of lower margins in Cocoa and Consumer businesses X Sales volumes up 2.8% to 293,620 tonnes X Sales revenues at CHF 1,154.8 m, down 5.7% X EBITA at CHF 90.1 m, down 5.6% X Net profit (PAT) at CHF 55.2 m, down 2.6% X Increased contributi
Slide 5: Financial Highlights first quarter 2004/05
Financial Highlights first quarter 2004/05 (in CHF mio.) % change 3-months 3-months 2004/05 2003/04 Sales revenue -5.7 1,154.8 1,224.7 in local currencies -3.3 1,184.1 EBITA -5.6 90.1 95.4 in local currencies -4.1 91.5 EBITA per tonne -8.1 306.9 334.0 in local currencies -6.7 311.6 Net profit (PAT)
Slide 6: Cocoa price development
(in £/tonne) 1000 1100 1200 1300 1400 1500 1600 1700 700 800 900 01. Jan 02 01. Feb 02 January 13, 2005 01. Mrz 02 01. Apr 02 01. Mai 02 01. Jun 02 01. Jul 02 01. Aug 02 01. Sep 02 01. Okt 02 01. Nov 02 01. Dez 02 01. Jan 03 01. Feb 03 01. Mrz 03 01. Apr 03 01. Mai 03 3-MONTH RESULTS 2004/05, ANALYS
Slide 7: Industrial Business Segment: Volume growth achieved
Industrial Business Segment: Volume growth achieved Cocoa X Sales volume increased by 7% to 33,639 tonnes, strong growth in Brasil, Great Britain, France and Germany X Sales revenue decreased by 14% to CHF 137.1 million due to lower underlying cocoa bean prices, negative currency effects and the low
Slide 8: Butter / powder prices
Butter / powder prices Dutch-German alkalised 10/12 Powder price & Butter price (in €/kg) (6-month forward deliveries, ex-factory, monthly average) 4,50 4,50 4,00 4,00 Powder price 3,50 3,50 Butter price (in euro / kg) (in euro / kg) 3,00 3,00 2,50 2,50 2,00 2,00 1,50 1,50 1,00 1,00 0,50 0,50 jan/97
Slide 9: Food Service/Retail Business Segment: Gourmet on track, Consumer under conversion
Food Service/Retail Business Segment: Gourmet on track, Consumer under conversion Gourmet & Specialties X Sales revenue growth of 2% to CHF 158.2 million mainly attributable to first-time consolidation of AM Foods combined with solid growth in Europe, the UK and Asia-Pacific, partially offset by low
Slide 10: Restructuring Germany – Update January 05 (I)
Restructuring Germany – Update January 05 (I) X Move Cologne to Norderstedt X Phase I accomplished by end of March 05 X Complete closure of Cologne factory end of June 05 X SKU reduction X Next round underway X Walk away from unprofitable volumes X First price increases implemented as of Jan 05 X Re
Slide 11: Restructuring Germany – Update January 05 (II)
Restructuring Germany – Update January 05 (II) X Recipe optimization X Main recipes have been adapted X Sales force restructuring X New sales force trained and in place X Agreement with German Works Council signed X Majority of terminations (77 of 101 intended) announced until December 31, 2004 X Re
Slide 12: Agenda
Agenda X Highlights 3-month results 2004/05 and business review X Financial results January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 12
Slide 13: Financial Highlights first quarter 2004/05
Financial Highlights first quarter 2004/05: X Volume growth of 2.8% to 293,620 tonnes partly attributable to first-time consolidation of AM Foods as well as organic growth X Revenues down 5.7% to CHF 1,154.8 million mostly due to lower underlying cocoa bean prices and negative currency effects Janua
Slide 14: Sales growth reconciliation 3-months 2003/04 to 2004/05
Sales growth reconciliation 3-months 2003/04 to 3-months 2004/05 (CHF m) 1,225 - 38 -18 15 1,155 -29 3M Sales Cocoa Volumes & Acquisition 3M Sales Currency 3M Sales Revenues price Margins AM Foods Revenues Revenues 04/05 03/04 04/05 - - + 1,225 - 22 -1 4 -51 1,155 Cocoa Food Gourmet & Consumer 3M Sa
Slide 15: Sales revenue by reporting currency
Sales revenue by reporting currency 3-months 2004/05 67% 8% 18% 3% 4% EUR USD CHF CAD Others January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 15
Slide 16: Net sales revenue by business units
Net sales revenue by business units 2002/03 2003/04 2004/05 (Full year) (Full year) (First quarter) 13% 13% 14% 45% 40% 40% 25% 33% 34% 17% 14% 12% Gourmet & Specialties Consumer Products Cocoa Food Manufacturers January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 16
Slide 17: Financial Highlights first quarter 2004/05
Financial Highlights first quarter 2004/05: X Volume growth of 2.8% to 293,620 tonnes partly attributable to first-time consolidation of AM Foods as well as organic growth X Revenues down 5.7% to CHF 1,154.8 million mostly due to lower underlying cocoa bean prices and negative currency effects X Gro
Slide 18: Key figures - Income statement
Key figures - Income statement (in CHF mio.) in % of 2004/05 in % of 2003/04 revenues 1. quarter revenues 1. quarter Sales revenues 100.0 1,154.8 100.0 1,224.7 Material consumed 66.4 (766.5) 64.0 (783.3) Gross Profit 33.6 388.3 36.0 441.4 Operating expenses 25.8 (298.2) 28.2 (346.0) Operating profit
Slide 19: Profitability ratios
Profitability ratios 2004/05 2003/04 3-mths 3-mths EBITA as % of Revenue 7.8% 7.8% EBITA as % of Gross Profit 23.2% 21.6% EBITA per tonne (in CHF) 306.9 334.0 January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 19
Slide 20: BU Cocoa: Expected lower contribution and different phasing
BU Cocoa: Expected lower contribution and different phasing compared to prior year BU Cocoa EBITA 0 Quarter I Quarter II Quarter III Quarter IV Plan 2004/05 Fiscal Year 2003/04 January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 20
Slide 21: Balance sheet key figures & ratios
Balance sheet key figures & ratios (in CHF mio.) 30/11/2004 31/08/2004 Net working capital 1,021.4 914.0 Net debt 1,044.3 943.0 Shareholder‘s equity 846.0 800.9 1) Debt to equity ratio 123.4% 117.7% Solvency ratio 2) 29.6% 29.0% Net debt / EBITDA 2.9x 2.6x 3) Interest cover ratio 4) 4.0x 3.9x 1) Net
Slide 22: Cash flow statement
Cash flow statement 2004/05 2003/04 (in CHF mio.) first quarter first quarter Operating cash flow before working capital changes 83.4 87.8 Change in net working capital -99.7 -108.6 Net cash flow from operations -16.3 -20.8 Investing activities -79.5 -17.8 Cash flow before financing activities -95.8
Slide 23: Outlook
Outlook “After a strong month in December we are expecting a good second quarter in terms of sales. With the financial benefits of the restructuring in Germany expected to come through later in the year, we are confident we can meet the communicated financial targets for the full year, barring any m
Slide 24: Backup
Backup January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 24
Slide 25: Satisfactory result in light of lower margins in Cocoa and Consumer businesses
Satisfactory result in light of lower margins in Cocoa and Consumer businesses in CHF mio. EBITA per quarter 120 95 90 100 88 74 80 70 68 59 58 60 1) 43 48 38 41 40 28 20 0 Q1 Q2 Q3 Q4 FY 01/02 FY 02/03 FY 03/04 FY 04/05 1) Before restructuring provision Stollwerck in the amount of CHF 80 million Ja
Slide 26: Trading history – share price performance
Trading history – share price performance Performance in % 120% 100% BARN SW Equity SPI Index 80% SPISMC Index 60% 40% 20% 0% -20% -40% sep/02 dec/02 mrt/03 jun/03 sep/03 dec/03 mrt/04 jun/04 sep/04 dec/04 January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 26
Slide 27: Trading history – share price performance and daily volume
Trading history – share price performance and daily volume Barry-Callebaut share price and volume Volume Evolution from September 2002 to January 2005 Share price performance in % 120% 100% 30.000 80% 25.000 60% 20.000 40% 15.000 20% 10.000 0% 5.000 -20% 0 -40% sep/02 sep/03 sep/04 January 13, 2005
Slide 28: Hazelnut price development
Hazelnut price development Turkish Hazelnut Kernels FAQ 870 770 670 USD/100 kg 570 470 370 270 170 jul-96 jul-97 sep-98 dec-99 mrt-01 jun-02 sep-03 dec-04 curr. crop new crop January 13, 2005 3-MONTH RESULTS 2004/05, ANALYSTS‘ AND MEDIA CALL 28
Slide 29: EBITA per Business Segment
EBITA per Business Segment (in CHF million) 1HY 2HY Full year Industrial Business Segment Fiscal year 2003/04 108.2 87.8 196.0 Fiscal year 2002/03 95.7 69.8 165.5 Food Service/Retail Business Segment Fiscal year 2003/04 84.2 25.0 109.2 Fiscal year 2002/03 70.4 42.4 112.8 Corporate Fiscal year 2003/0