Tate & Lyle PLC · LSE:TATE
Tate & Lyle — Shareholder Meeting (July 2007)
29 slides from Tate & Lyle's shareholder meeting presentation, Jul 18, 2007
Slide 1: Annual General Meeting
Annual General Meeting 18 July 2007
Slide 2: Annual General Meeting - Iain Ferguson, Chief Executive
Annual General Meeting Iain Ferguson, Chief Executive 18 July 2007
Slide 3: Agenda
Agenda Strategic Overview & Key Financials SPLENDA® Sucralose Sweet successes! Business Reshaping for Future Growth 3
Slide 4: Strategic vision
Strategic vision PURPOSE to create the world’s leading renewable ingredients business 4
Slide 5: Key Results
Key Results Year to 31 March 2007 vs 2006 Total Profit Before Tax1 £336m Up 14% Food & Industrial Ingredients, £163m Up 30% Americas Profit Before Interest Margin1 9.2% Up 40 bp Diluted EPS1 47.9p Up 15% Dividend 21.5p Up 1.5p, 7.5% 1 Before exceptional items and amortisation of acquired intangibles
Slide 6: Share Price
80 90 100 110 120 130 140 17/07/06 31/07/06 14/08/06 28/08/06 11/09/06 25/09/06 09/10/06 23/10/06 Share Price 06/11/06 20/11/06 04/12/06 18/12/06 01/01/07 15/01/07 29/01/07 One year relative performance 12/02/07 26/02/07 12/03/07 Tate & Lyle 26/03/07 T&L share price relative: 1yr to date 09/04/07 23
Slide 7: Share Price
90 110 130 150 170 190 210 230 250 270 19/07/04 27/08/04 05/10/04 13/11/04 22/12/04 30/01/05 10/03/05 Share Price 18/04/05 27/05/05 05/07/05 13/08/05 21/09/05 30/10/05 08/12/05 Tate & Lyle 16/01/06 24/02/06 04/04/06 Three year relative performance 13/05/06 FTSE 100 21/06/06 30/07/06 T&L share price
Slide 8: Agenda
Agenda Overview and Key Financials SPLENDA® Sucralose Sweet successes! Business Reshaping for Future Growth 8
Slide 9: Singapore facility mechanically complete
SPLENDA® Sucralose Singapore facility mechanically complete SPLENDA® Sucralose Singapore Plant – £100m Ramp up will take 12 months 9
Slide 10: High intensity sweeteners
SPLENDA® Sucralose High intensity sweeteners Market shares by region – total market US$1bn 50% 45% 45% 40% 35% 32% 30% 28% 25% 20% 15% 12% 12% 10% 5% 1% 0% North America Latin America Europe Asia Pacific Rest of World Global Source: LMC International; Company data. Excludes industrial use of sacchar
Slide 11: Household Penetration Data
SPLENDA® Sucralose Household Penetration Data US Household Penetration of SPLENDA® Brand higher than many other iconic brands* SPLENDA® Brand 58.5% Heinz 55.5% McCormick Spices 53.1% Tropicana 51.1% * % of US households purchasing a product with the “Sweetened with SPLENDA® Brand “ logo on the packa
Slide 12: Four drivers of growth
SPLENDA® Sucralose Four drivers of growth Tea drink in Pakistan Baked cookies in the New product United States lines which are difficult to Entry into new manufacture geographies with other HIS’s SPLENDA® Sucralose Substitution for Sweetener other HIS’s in optimisation – existing ranges nutritive bl
Slide 13: Success with major UK retailers
SPLENDA® Sucralose Success with major UK retailers y Sainsbury’s replacing all high intensity sweeteners with sucralose in own-brand low calorie drinks y Reformulated products available from June 2007 y ASDA replacing aspartame with SPLENDA® Sucralose in all own label food and soft drinks by end of
Slide 14: SPLENDA Sucralose is a highly successful product
SPLENDA® Sucralose SPLENDA® Sucralose is a highly successful product y Strong brand – sales doubled in last 3 years 9 y Additional capacity successfully installed 9 y We are defending our patent estate 9 y Additional resources in sales, marketing and R&D deployed 9 14
Slide 15: Agenda
Agenda Strategic Overview & Key Financials SPLENDA® Sucralose Sweet successes! Business Reshaping for Future Growth 15
Slide 16: Tate & Lyle Sugar Brands – Recent Successes
Tate & Lyle Sugar Brands – Recent Successes Won extra distribution in 1800 Co-Op retail outlets Named top 100 “Superbrand” in the UK 16
Slide 17: Lyle's Golden Syrup – World's Oldest Branding
Lyle’s Golden Syrup – World’s Oldest Branding Named by the Guinness World Records as the world’s oldest branding. Over 120 years old. Currently featured in “Full of lovely stuff” advertising campaign for well known car manufacturer. 17
Slide 18: Agenda
Agenda Overview and Key Financials SPLENDA® Sucralose Sweet successes! Business Reshaping for Future Growth 18
Slide 19: Business reshaping in line with Strategy – Global Food Ingredients
Business reshaping in line with Strategy Investments Investments in Global Food Ingredients y 80% investment in G.C. Hahn in Germany, a leader in dairy stabiliser systems y Established Health and Wellness centre in Lille and added new sales and R&D centres in Shanghai and Melbourne 19
Slide 20: Business reshaping in line with Strategy – European Sugar
Business reshaping in line with Strategy Investments Investment in European Sugar y Destination markets: JV with Eridania Sadam y Plant efficiency: bio-mass boiler, unloading cranes 20
Slide 21: Business reshaping in line with Strategy – Disposals
Business reshaping in line with Strategy Disposals Sale of Redpath y completed on 21 April 2007 with a net consideration of £131m, resulting in net gain of £55m Eastern Sugar y surrender of quota and successful outcome of litigation resulted in net gain of £23m 21
Slide 22: Business reshaping in line with Strategy – Disposals
Business reshaping in line with Strategy Disposals Sugars, Mexico y exploring disposal of interest in Occidente JV with a number of interested parties European Starches y agreement reached with Syral (subsidiary of Tereos) for sale of our starch facilities in the UK, Belgium, France, Spain and Italy
Slide 23: Expansion projects continue to progress satisfactorily
Expansion projects continue to progress satisfactorily DuPont Tate & Lyle Bio-PDO™ JV – £60m total Completed on time and sales made across several categories 9 23
Slide 24: Expansion projects continue to progress satisfactorily
Expansion projects continue to progress satisfactorily Sagamore – £50m Expansion to increase capacity for value added food starches complete 9 24
Slide 25: Expansion projects continue to progress satisfactorily
Expansion projects continue to progress satisfactorily Loudon – £50m 9 Value added starches and ethanol capacity expansion, on track to complete in Oct 2007 25
Slide 26: Expansion projects continue to progress satisfactorily
Expansion projects continue to progress satisfactorily Fort Dodge – £140m 9 1st phase of new corn wet mill (for cationic starches & ethanol) on track to complete by March 2009 26
Slide 27: Key areas of focus
Key areas of focus y Geographic and product expansion of SPLENDA® Sucralose y Reshape our European ingredients business y Continue European Sugar reshaping for the market beyond 2009 y Progress all expansion projects and continue to seek bolt-on acquisitions y Improve balance sheet efficiency 27
Slide 28: Conclusion
Conclusion • Our long term strategy continues to serve us well • We are confident we will be well-placed to deliver further growth in the years ahead 28
Slide 29: Annual General Meeting
Annual General Meeting 18 July 2007