Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Q1 2020 Earnings Presentation
36 slides from Barry Callebaut's earnings presentation, Jan 20, 2020
Slide 1: Roadshow presentation
Roadshow presentation 3-Month Key Sales Figures 2019/20 January 2020
Slide 2: Agenda
AGENDA BC at a glance Highlights 3-Month Key Sales 2019/20 Strategy & Outlook Appendix 2 3-months sales 2019/20 Roadshow presentation
Slide 3: BC at a glance
BC AT A GLANCE 3 3-Month Key Sales Figures 2019/20
Slide 4: Strong values & a strong team
BC at a glance - Who are we? Strong values & a strong team We are the heart and engine of the chocolate A merger between Cacao Barry, the very first French and cocoa industry chocolate connaisseur since 1842 and Callebaut a Belgian chocolate couverture manufacturer expert since 1911 Listed on the SI
Slide 5: This is Barry Callebaut
BC at a glance – This is Barry Callebaut ‘Shaping the world of chocolate and cocoa’ Full-Year 2018/19 0 0 0 5 3-Month Key Sales Figures 2019/20
Slide 6: We are present in the key parts of the cocoa and chocolate value chain
BC at a glance - What do we do? We are present in the key parts of the cocoa and chocolate value chain From the cocoa bean to the chocolate and cocoa products 6 3-Month Key Sales Figures 2019/20
Slide 7: A strong global market leader
BC at a glance – Market Leadership A strong global market leader Cocoa grinding capacity (kMT) Industrial Chocolate (open market – kMT) Market impact BC BC Cargill Cargill Olam Fuji Oil ECOM Puratos Fuji Oil Cémoi Guan Chong Clasen Mondelez Guan Chong Nestlé Irca Ferrero Kerry Group BT Cocoa Guittar
Slide 8: A broad offering with cost plus model on majority of business
BC at a glance – offering and business model A broad offering with cost plus model on majority of business Cocoa Products Food Manufacturers Gourmet & Specialties % share: 22%* of volume 66%* of volume 12%* of volume Customer: Small, medium and Global Small, medium and Global Professionals, Food Cha
Slide 9: A global footprint and local service: 62 factories worldwide
BC at a glance - where are we present? A global footprint and local service: 62 factories worldwide Cocoa & Chocolate factories Chocolate Academy Cocoa factories in countries of origin and chocolate factories close to our customers. With our 23 Chocolate Academies worldwide we are at the pulse of an
Slide 10: Highlights
HIGHLIGHTS 3-Month Key Sales Figures 2019/20 10 3-Month Key Sales Figures 2019/20
Slide 11: Strong start to the year
Highlights 3-Month Key Sales Figures 2019/20 Strong start to the year Sales volume up +8.2%, well above the flat global underlying chocolate confectionery market1 Sales revenue of CHF 2,000.8 million, up +8.7% in local currencies (+6.3% in CHF) On track to deliver on mid-term guidance2 1 Source: Nie
Slide 12: Quarterly sales volume growth
Highlights 3-Month Key Sales Figures 2019/20 Quarterly sales volume growth Cocoa Chocolate +10.6% FY 2017/18 FY 2018/19 +8.2% +5.1% +10.6% +6.3% +8.0% +8.1% +10.2% +7.4% +4.8% +4.7% +5.3% +4.8% +1.1% +3.0% +2.3% +3.1% +10.7% +8.1% +9.0% +1.7% +7.7% +5.7% +5.9% +5.5% +2.9% +4.3% -2.4% -0.9% Q1 17/18
Slide 13: Broad based growth in all Regions
Highlights 3-Month Key Sales Figures 2019/20 Broad based growth in all Regions Group Sales Volume: EMEA 585,620 1’046’695 269,636 Americas tonnes 152,843 Global Asia-Pacific Cocoa 33,486 129,655 EMEA Americas Asia Pacific Global Cocoa - 3-month volume +8.7% +3.3% +21.8% +10.2% growth +0.3% -3.0% +6.
Slide 14: All key growth drivers contributing
Highlights 3-Month Key Sales Figures 2019/20 All key growth drivers contributing % of total % volume growth Group volume vs prior year 35% +16.7% Emerging excl. cocoa Markets +15.9% Key growth drivers 32% Outsourcing crucial to Long-term continuously +2.7% Partnerships outperform the market 12% +2.4
Slide 15: Combined cocoa ratio stable, but other variables changing
Cocoa processing profitability Combined cocoa ratio stable, but other variables changing European combined ratio – 6-month forward ratio Directionally right… 4.00 Shows general high level industry Combined direction, assuming many 3.50 Ratio 3.5 variables are fixed 3.00 However… Butter 2.50 Ratio Ma
Slide 16: Raw material price development
100% 150% 50% 200% 250% 0% 26. Aug 09 18. Nov 09 Aug-09 Raw material 10. Feb 10 05. Mai 10 28. Jul 10 20. Okt 10 Aug-10 12. Jan 11 06. Apr 11 29. Jun 11 16 3-Month Key Sales Figures 2019/20 21. Sep 11 Aug-11 14. Dez 11 07. Mär 12 30. Mai 12 22. Aug 12 16. Nov 12 Aug-12 08. Feb 13 03. Mai 13 26. Jul
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK 17 3-Month Key Sales Figures 2019/20
Slide 18: Consistent long-term strategy – evolving execution
Strategy Consistent long-term strategy – evolving execution “Heart and engine of the Vision chocolate and cocoa industry” Sustainable growth Expansion Margin accretive growth 4 strategic Innovation ‘smart Accelerated growth in Gourmet, pillars Specialties and Emerging Markets growth’ Cost Leadership
Slide 19: Innovation
Strategy Innovation ‘Cacaofruit Experience’ – building excitement Concept introduced to the market in September 2019 Currently 30 top chefs experimenting with ‘Wholefruit chocolate’ First ‘Cacaofruit Experience’ products already being piloted in California, USA Ruby making further waves In November
Slide 20: Drive momentum, drive value creation
Strategy Drive momentum, drive value creation Cost Leadership Expansion Streamlining and further improving processes Expanding in Emerging Markets • Ongoing roll-out of SAP • Integration of Inforum on track – moved to new joint • Process streamlining in Finance and Planning offices in January 2020 •
Slide 21: Forever Chocolate Progress Report – increasing our impact
Sustainability Forever Chocolate Progress Report – increasing our impact 21 3-Month Key Sales Figures 2019/20
Slide 22: Forever Chocolate Progress Report – increasing our impact
Sustainability Forever Chocolate Progress Report – increasing our impact 22 3-Month Key Sales Figures 2019/20
Slide 23: Adding value at every step
A transformation journey Adding value at every step Value added Offering 23 3-Month Key Sales Figures 2019/20
Slide 24: Mid-term guidance
Outlook Mid-term guidance Confident to deliver on renewed guidance Committed to pursuing successful ‘smart growth’ strategy Good growth momentum Strong innovation portfolio Discipline in execution Strong team Mid-term guidance 2019/20 to 2021/22, on average: Volume growth of +4-6% EBIT growth above
Slide 25: Appendix
APPENDIX 25 3-Month Key Sales Figures 2019/20
Slide 26: What makes Barry Callebaut unique
Appendix What makes Barry Callebaut unique Global number one player in chocolate and cocoa Deep chocolate and cocoa expertise Consistent growth above the underlying market Global leader in Gourmet & Specialties Proven and long-term oriented strategy Unparalleled global footprint, present in all key
Slide 27: Significant headroom for further growth and raw material price fluctuations
Appendix Significant headroom for further growth and raw material price fluctuations 27 3-Month Key Sales Figures 2019/20
Slide 28: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) North America (22% of market) 2014-19 CAGR: -0.3% 2014-19 CAGR: -0.5% 1Q 2019/20: -1.1% 1Q 2019/20: -3.1% EEMEA (24% of market) 2014-19 CAGR: -0.3% 1Q 2019/20: +3.4% Asia Pacific (14% of market) 2014-19
Slide 29: Our market and opportunities ahead
Appendix Our market and opportunities ahead Global Chocolate confectionery volume growth vs cocoa bean price Forecast volume growth per application 2018-2023 5 2’500 4 2’000 Volume growth 3 GBP / tonne Chocolate confectionery 1.3% 2 1’500 1 1’000 0 Ice cream 2.2% 500 -1 -2 0 Sweet biscuits 1.9% 2006
Slide 30: All Regions contributed to volume growth and profitability
Full-Year 2018/19 Financial review – Key Performance Indicators by Region All Regions contributed to volume growth and profitability Group Sales Volume: 1’046’695 2,139,758 tonnes volume growth / Market EBIT growth in local volume growth1 currencies EMEA +6.1% / +1.1% +5.9% Americas EMEA 573,413 981
Slide 31: Gross profit up +5.1% in local currencies, driven by good volume growth and mix
Full-Year 2018/19 Gross profit Gross profit up +5.1% in local currencies, driven by good volume growth and mix effects In CHF millions +5.1% +10 +33 +59 1,216 -43 1,188 -28 1,157 Gross Profit Volume effects Mix effects Cocoa business Additional costs Gross Profit FX impact Gross Profit FY 2017/18 im
Slide 32: Strong increase in Operating profit by +11.9% in local currencies
Full-Year 2018/19 EBIT bridge Strong increase in Operating profit by +11.9% in local currencies In CHF millions +11.9% +7 620 + 59 601 -19 554 EBIT Additional Additional EBIT FX impact EBIT FY 2017/18 Gross Profit SG&A, Other FY 2018/19 before FX FY 2018/19 32 3-Month Key Sales Figures 2019/20
Slide 33: Increase in EBIT thanks to enhanced product and customer mix
Long-term EBIT per tonne development Increase in EBIT thanks to enhanced product and customer mix and continued improvement in Cocoa business In CHF millions 327 312 312 EBIT per tonne in CHF 290 (at constant currencies) 282 274 279 283 271 EBIT per tonne in CHF 286 251 281 (as reported) 272 256 242
Slide 34: Net Profit up +14.2% in local currencies, based on good profitability
EBITDA to Net Profit Full-Year 2018/19 Net Profit up +14.2% in local currencies, based on good profitability In CHF millions 775 601 -174 +14.2% -148 +26 +13 408 369 357 -84 EBITDA Depreciation EBIT Financial Income taxes Net profit Net effect of FX Impact Net profit Net profit FY 2018/19 and FY 201
Slide 35: Good Free cash flow generation, while investing in structural improvements
Full-Year 2018/19 Free cash flow Good Free cash flow generation, while investing in structural improvements for future growth In CHF millions +6.4% +33 775 728 -234 +33 323 290 257 -280 -5 -66 EBITDA EBITDA Change in Interest CAPEX Others FCF Aug 19 Effect of FCF Aug 19 RMI Beans FCF Aug 18 Aug 19 w
Slide 36: Strong Balance sheet with further improvement in key ratios
Full-Year 2018/19 Financial key figures Strong Balance sheet with further improvement in key ratios Aug 18 Aug 18 (in CHF millions) Aug 19 Pro forma1 Reported Total assets 6,508.1 6,169.0 5,832.0 Net working capital 1,363.2 1,403.4 1,074.4 Non-current assets 2,650.0 2,506.5 2,505.5 Net debt 1,304.7