Tate & Lyle Plc · LSE:TATE
Tate & Lyle — FY2025 Earnings Presentation
36 slides from Tate & Lyle's earnings presentation, May 22, 2025
Slide 1: Results for the Year Ended 31 March 2025
Results for the Year Ended Nick Hampton, Chief Executive 31 March 2025 Sarah Kuijlaars, Chief Financial Officer
Slide 2: Cautionary statement
Year ended 31 March 2025 Cautionary statement This presentation of the Full-Year Results for the year ended 31 March 2025 contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Tate & Lyle PLC. These statements and forecasts involve
Slide 3: Key messages for today
Year ended 31 March 2025 Key messages for today 1 2 3 Transformation Significant strategic Focus on accelerating complete and financial delivery top-line growth 3
Slide 4: Transformation complete: growth-focused speciality business
Year ended 31 March 2025 Key messages 1 Transformation complete Growth-focused speciality business
Slide 5: Transformed shape of business over last seven years
Year ended 31 March 2025 Transformed shape of business over last seven years Built Sold speciality business commodity business Transformational acquisition IN OUT Transformation into fully-focused speciality ▪ High fructose corn syrup business complete ▪ Industrial starches Bolt-on acquisitions stev
Slide 6: Transformed quality of business over last five years
Year ended 31 March 2025 Transformed quality of business over last five years Transformed Transformed Transformed Transformed Commercial model Innovation focus Geographical mix Societal impact Increase in applications and Investment in innovation Revenue from Asia Pacific Calories removed from diets
Slide 7: Transformed performance of business over last five years
Year ended 31 March 2025 Transformed performance of business over last five years1 Revenue EBITDA +7% +10% CAGR CAGR EBITDA Margin Free cash flow 350bps £700m High Quality, Resilient Business increase generated 7 1. Continuing operations only; excludes CP Kelco in the 2025 financial year.
Slide 8: Robust financial results, significant strategic progress
Year ended 31 March 2025 Key messages 2 Robust financial results Significant strategic progress
Slide 9: Revenue and profit
Year ended 31 March 2025 Revenue and profit Tate & Lyle CP Kelco (Pro forma) Combined business1 Robust performance Margin momentum Strong foundation +9% +5% +4% +3% Revenue EBITDA Revenue EBITDA EBITDA (5)% (3)% Revenue EBITDA Margin: 22.3% EBITDA Margin: 17.6% EBITDA Margin: 21.0% 9 1. Pro forma fi
Slide 10: Divisional highlights
Year ended 31 March 2025 Divisional highlights Food & Beverage Solutions Sucralose Volume and margin growth Robust customer demand Revenue (7)% +16% Adjusted EBITDA +2% +18% Adjusted EBITDA margin 23.1% 31.1% +200bps +40bps 10 1. Changes in constant currency
Slide 11: EBITDA margin progression
Year ended 31 March 2025 EBITDA margin progression Food & Beverage Solutions Sucralose EBITDA Margin EBITDA Margin 31% 29% 23% 15% 2018 2025 2018 2025 Growth engine Attractive returns +800bps over last 7 years Consistent performance 11
Slide 12: Productivity savings
Year ended 31 March 2025 Productivity savings Strong productivity performance, well ahead of target Progress on 5-year productivity target to 31 March 2028 Delivered productivity savings of US$50m Target US$150m US$91m US$50m US$33m US$17m operational and strong cost management Year to 31 March 2025
Slide 13: Productivity savings: digital manufacturing
Year ended 31 March 2025 Productivity savings Investment in digital manufacturing driving operational excellence Production facilities Digital enablement Sagamore, Indiana, US Intelligent Planning ▪ Optimised production scheduling Up to four more ▪ Enhanced production forecasting production faciliti
Slide 14: CP Kelco performed ahead of our acquisition plan
Year ended 31 March 2025 CP Kelco performed ahead of our acquisition plan Building margin momentum Pro Forma1 ▪ Strong revenue growth in pectin, gellan gum and citrus fibre Year ended 31 March 2025 ▪ Volume +8%; improved production efficiency Revenue £612m +3% ▪ Adjusted EBITDA margin up 100bps to 1
Slide 15: New regional reporting framework
Year ended 31 March 2025 New regional reporting framework Revenue and profit by region 64% 51% Revenue 31% EBITDA £2,124m £446m 24% 18% 12% Americas Europe, Middle East and Africa Asia Pacific 15
Slide 16: Financial highlights
Year ended 31 March 2025 Financial highlights Enlarged Tate & Lyle Includes CP Kelco from 15 November 2024 Adjusted EBITDA Adjusted profit before tax Adjusted earnings per share £381m £270m +4% +18% +9% 50.3 pence Return on capital employed Free cash flow Net debt to EBITDA leverage 12.8% £190m 2.2x
Slide 17: Taxation, exceptional items and dividend
Year ended 31 March 2025 Taxation, Exceptional items and Dividend Adjusted effective tax rate Pre-tax exceptional charges Full-Year dividend 22.6% £(96)m 19.8p per share +150bps +3.7% Expect to be in range of £(59)m £(24)m £(13)m Recommending 23% to 25% exit of integration restructuring final divide
Slide 18: Free cash flow increased to £190m
Year ended 31 March 2025 Free cash flow increased to £190m Excellent performance with cash conversion of 82%, ahead of our target £1m £(11)m £53m £(11)m £(12)m £190m £170m FY24 FCF EBITDA Working capital Capital expenditure Net interest Tax and other FY25 FCF Capital expenditure expected to be betwe
Slide 19: Strong balance sheet
Year ended 31 March 2025 Strong balance sheet Maintaining financial strength ▪ Net debt £961m mainly reflecting acquisition of CP Kelco ▪ Long-term financing in place Net debt to EBITDA2 at 2.2x, better than expected at date of ▪ Strong liquidity headroom of £1 billion CP Kelco acquisition ▪ Expect
Slide 20: Innovation and solution selling support margin expansion
Year ended 31 March 2025 Innovation and solution selling continue to support margin expansion New Products Solutions Innovation 9% 21% US$80m Increase in Solutions by value from Invested in innovation New Products revenue1 new business wins and solution selling 20 1. Like-for-like basis is where no
Slide 21: Strengthening local supply for customers
Year ended 31 March 2025 Strengthening local supply for customers New partnerships Stevia Food Starches Only high-purity stevia Reb M Supply of food starches Supply of food starches manufactured in the US from for customers in for customers in Americas-sourced leaf Brazil and Latin America China 21
Slide 22: Outlook for year ending 31 March 2026
Looking ahead Outlook for year ending 31 March 2026 Tariffs Outlook ▪ Regional production model ▪ Confident in delivery of medium-term financial algorithm – Revenue growth towards higher end of 4-6% p.a. ▪ c.90% of US sales from products made in US – EBITDA margin improvement – Strong cash generatio
Slide 23: Combined business potential, accelerating top-line growth
Year ended 31 March 2025 Key messages 3 Combined business potential Accelerating top-line growth
Slide 24: CP Kelco integration progressing well
Year ended 31 March 2025 CP Kelco integration progressing well Operating as one combined business from 1 April 2025 ✓ New simple and agile organisation ✓ New culture and values launched ✓ Refreshed brand rolled out ✓ Positive customer engagement ✓ Mouthfeel programme deployed 24
Slide 25: Confident in delivery of synergies
Year ended 31 March 2025 Confident in delivery of synergies Revenue synergies Cost synergies Target Target First year 10% US$50m >US$25m of CP Kelco’s revenue by end of 2027 financial year expected in 2026 financial year over medium term Detailed Confident On-track plan in place in delivery 25
Slide 26: CP Kelco significantly strengthens four pillars of growth framework
Year ended 31 March 2025 CP Kelco significantly strengthens four pillars of growth framework Accelerate Innovation Portfolio Expansion Customer Integrated Solutions Market Focus CP Kelco brings to Tate & Lyle…. Technical expertise Solutions capabilities Mouthfeel portfolio Faster-growing markets 26
Slide 27: Combination delivers enhanced speciality portfolio
Year ended 31 March 2025 Combination delivers enhanced speciality portfolio Sweetening Mouthfeel Fortification ▪ Enhance texture ▪ Improved nutrition (fibres/protein) ▪ Sugar and calorie reduction ▪ Sensory experience ▪ Add health benefits ▪ Nutrition improvement ▪ Clean label solutions ▪ Sugar and
Slide 28: Combination delivers broader and deeper customer engagement
Year ended 31 March 2025 Combination delivers broader and deeper customer engagement North America Japan France Middle East Fruit Smoothie Dipping Sauce Dairy Desserts Flavoured Milk Tate & Lyle customer CP Kelco customer Tate & Lyle customer Customer of both Pectin solution solved Low sugar, fibre
Slide 29: Combination delivers solutions to key societal trends
Year ended 31 March 2025 Combination delivers solutions to key societal trends Anti-obesity Ultra-processed Health Taste medication (AOM) foods ▪ Experts in taking sugar, calories and fat ▪ Experts in reformulating food and drink out of food and adding fibre and protein to improve its nutritional ba
Slide 30: Combination delivers on needs of AOM users
Year ended 31 March 2025 Combination delivers on needs of AOM users 200+ solutions available to support AOM users AOM users’ needs Categories 1. Nutrient density Our solutions 2. Gut health support consumers before, during and 3. Satiety after taking anti- obesity medicine 4. Hydration 5. Permissibl
Slide 31: Deeper dive at Capital Markets events
Year ended 31 March 2025 Deeper dive at Capital Markets events 1 July, Central London 3 July, Copenhagen ▪ CP Kelco and the power of the combination ▪ Scientific production process for pectin ▪ Mouthfeel as a driver of customer solutions ▪ Plant tour ▪ Growth opportunity from key societal trends ▪ R
Slide 32: Focus on accelerating top-line growth
Year ended 31 March 2025 Focus on accelerating top-line growth Combination delivering significant benefits ✓ Delivering targeted synergies ✓ Strengthens growth framework ✓ Enhances speciality portfolio ✓ Driving customer engagement ✓ Positioned to address key societal trends 32
Slide 33: Confidence in growth potential of combined business
Year ended 31 March 2025 Confidence in growth potential of combined business Tate & Lyle is a global leader in: Sweetening Mouthfeel Fortification With a leading portfolio and unique combination of capabilities to support its customers: Science Applications Formulation Nutrition Insights Regulatory
Slide 34: Tate & Lyle
TATE (YW LYLE
Slide 35: Appendix
35 \ Appendix
Slide 36: Net debt movement
Year ended 31 March 2025 Net debt movement Net debt to EBITDA1 leverage 2.2x, better than anticipated at date of CP Kelco acquisition Primient sale completed June 2024 Share buyback completed January 2025 £277m £(216)m £(153)m £190m £(838)m 31 31 March March 2024 2024 Free cash flow Primient proceed