Tate & Lyle PLC · LSE:TATE
Tate & Lyle — Deutsche Bank Conference June 2010
18 slides from Tate & Lyle's conference presentation, June 2010
Slide 1: Deutsche Bank Conference
Deutsche Bank Conference Tim Lodge, Chief Financial Officer Paris, June 2010
Slide 2: Tate & Lyle Business Overview
Tate & Lyle Business Overview Founded in the UK in 1921 Market cap £2.2bn at 11 June 2010; £3.5bn sales and £229m profit* in FY2010 Global provider of ingredients and solutions to the food, beverage and other industries Strong franchises, valuable brands and leading market positions Over 4
Slide 3: Historically Focused on Three Areas
Historically Focused on Three Areas % of Group % of Group Core Area Operating Profit1,2 Sales1 Corn Wet Milling 67% 71% EU Cane Sugar Refining 28% 9% High intensity 5% 20% sweeteners 1 In year to 31 March 2010 2 before central costs 3
Slide 4: Key Results
Key Results Solid performance in the face of challenging conditions in a number of markets Operating profits of £298m in line with the previous year1,2 Reported net debt reduced by over a third to £814m benefiting from free cash inflow of £540m (2009 - £154m) 3 Total net exceptional charges
Slide 5: Performance Against Financial Priorities
Performance Against Financial Priorities Zero-based Capex Capex to depreciation at 68% Reduce Working Working capital cash inflow of Capital £291m Underlying costs reduced by Costs £30m 5
Slide 6: Outlook
Outlook Steady demand for value added food expected to continue Continued benefit from single Sucralose manufacturing base Anticipate progress in Expect continuing modest decline in sweeteners to be offset by increased demand from Mexico FY2011 as we maintain focus Industrial starch margins
Slide 7: Focus, Fix, Grow
Focus, Fix, Grow
Slide 8: Clear Focus
Clear Focus What The leading global provider of speciality food ingredients and solutions By… Disciplined focus on growing our speciality food ingredients business – deeper customer understanding, continuous innovation and agility – stronger positions in high growth markets Driving our bulk ingr
Slide 9: Speciality Food Ingredients − The Opportunity
Speciality Food Ingredients − The Opportunity US$30 billion global potential addressable Global Food Ingredients US$30bn market –growing at 5% per annum Regional Split1 Rest of Increasing customer demand driven by World 15% North strong, underlying consumer trends 30% America –health and wellnes
Slide 10: Speciality food ingredients − Why Tate & Lyle Can Succeed
Speciality food ingredients − Why Tate & Lyle Can Succeed Competitive global market positions1 –#2 speciality food starches Strong –#1 crystalline fructose elements we –#1 high intensity sweeteners can build on Small position in emerging markets but growing strongly Strong relationships with g
Slide 11: Our New Operating Model
Our New Operating Model Customers Global business units Speciality Bulk Sugars Food Ingredients Ingredients Global growth Innovation and Commercial Development unit Global Shared business services support and corporate functions services Global IS/IT Common IS/IT platform 11
Slide 12: Fixing the Operations
Fixing the Operations Capital Review completed with external experts allocation Rigorous capital allocation process being rolled-out Working Introduced standard metrics for cash conversion cycle capital Included in bonus incentive system for the first time Operational Set up common perform
Slide 13: Fixing the Organisation
Fixing the Organisation De-layer and flatten organisational structure Structure Improve management’s ‘line of sight’ to business New Group HR Director joined in February Talent Clear recruitment criteria established Restructured incentive system Revamped performance management system Cul
Slide 14: Fixing the Investment Focus
Fixing the Investment Focus Historical inconsistency between strategic intent and investment allocation Capital investment Future FY2007 − FY2010 capital investment Bulk Speciality Significantly greater focus on ingredients ingredients − speciality food ingredients Emerging − emerging markets ma
Slide 15: New Focus on Long-Term Growth
New Focus on Long-Term Growth New Innovation and Commercial Development group established Combines R&D, marketing and product management Close collaboration with customers worldwide Primary focus on speciality food ingredients Responsible for innovation pipeline Today Future Focus Develop
Slide 16: Our KPIs
Our KPIs KPI Measure Growth in Speciality Food Ingredients B Sales Financial Profitability B Operating profit / PBTEA performance Working capital efficiency B Cash conversion cycle Asset utilisation B ROCE Financial Net Debt / EBITDA strength Balance sheet B Interest Cover Corporate responsibility1
Slide 17: The future…
The future… Clear focus Management New operating model highly engaged Investment priorities realigned and committed Stronger operational and organisational foundations to deliver Creating a platform to deliver growth Focus Fix Grow Short to = Execution Long term = medium term premium Stead
Slide 18: Questions & Answers
Questions & Answers