Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Q1 2021/22 Earnings Presentation
37 slides from Barry Callebaut's earnings presentation, Jan 26, 2022
Slide 1: Roadshow presentation: 3-Month Key Sales Figures 2021/22
Roadshow presentation 3-Month Key Sales Figures 2021/22 January, 2022
Slide 2: Cautionary note
Cautionary note Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘bel
Slide 3: Barry Callebaut at a glance
Barry Callebaut at a GLANCE 3 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 4: Growing the world of chocolate and cocoa for 25 years
Barry Callebaut at a glance - Who are we? Growing the world of chocolate and cocoa for 25 years We are the heart and engine of the chocolate and cocoa industry 120 years of Big enough to Chocolate matter, small experience enough to care 4 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 5: 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 chocolate and cocoa products 5 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 6: A global footprint and local service: over 60 factories worldwide
Barry Callebaut at a glance - What do we do? A global footprint and local service: over 60 factories worldwide and strong roots in origin countries Cocoa & Chocolate factories Total world harvest (20/21E): 5,175 TMT CHOCOLATE ACADEMYTM centers Rest of the World 11% Indonesia 4% Brazil 4% Côte Nigeri
Slide 7: A broad offering with cost plus model for majority of business
Barry Callebaut at a glance – offering and business model A broad offering with cost plus model for majority of business Cocoa Products Food Manufacturers Gourmet & Specialties % share: 20%* of volume 67%* of volume 13%* of volume Customer: Small, medium and Global Small, medium and Global Professio
Slide 8: 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 Barry Callebaut Barry Callebaut Cargill Cargill Olam Fuji Oil Guan Chong Puratos Cémoi Fuji Oil (Baronie Group) ECOM Clasen Mondelez Guan Chong Ferrer
Slide 9: Highlights
HIGHLIGHTS 3-Month Key Sales Figures 2021/22 9 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 10: Strong volume growth, driven by chocolate business
Highlights 3-Month Key Sales Figures 2021/22 Strong volume growth, driven by chocolate business Sales volume up +8.9%, driven by strong chocolate business (+9.6%) Sales revenue of CHF 2,032.2 million, up +14.0% in local currencies (+14.3% in CHF) On track to deliver on mid-term guidance for the 3-ye
Slide 11: Key milestones
Highlights 3-Month Key Sales Figures 2021/22 Key milestones October 2021 November 2021 Inauguration of Global decorations chocolate brand Mona Lisa September 2021 factory in Novi entering Mexico, its Sad, Serbia 50th market worldwide Launch of Launch of Netflix Extension of strategic ELIX – first do
Slide 12: Innovation – Chocolate trends 2022
Highlights 3-Month Key Sales Figures 2021/22 Innovation – Chocolate trends 2022 Indulgent moments – Since COVID-19, comfort food has become more important to consumers. Confectionery can support emotional well-being now and in the ‘next normal’. Good for me – Consumers want chocolate confections & s
Slide 13: Strong volume growth driven by Chocolate
Highlights 3-Month Key Sales Figures 2021/22 Strong volume growth driven by Chocolate Cocoa FY 2019/20 FY 2020/21 YTD 2021/22 Chocolate -2.0% +4.6% +8.9% +18.4% +8.4% +8.9% +8.2% +8.0% +6.0% +10.2% +21.2% +2.7% +9.4% +9.6% +7.7% +2.5% +2.5% +2.5% -5.5% -5.5% -14.6% -13.1% -3.9% -0.2% -1.8% -1.3% -4.
Slide 14: All Key growth drivers contributed
Highlights 3-Month Key Sales Figures 2021/22 All Key growth drivers contributed % of total % volume growth Group volume vs. prior year 37% Emerging +11.0% Markets Key growth drivers 34% Outsourcing, crucial to continuously +4.5% Long-term Partnerships outperform the market 13% Gourmet & +33.8% Speci
Slide 15: All Regions contribute to strong Chocolate volume growth
Highlights 3-Month Key Sales Figures 2021/22 All Regions contribute to strong Chocolate volume growth - Global Cocoa returned to positive growth Group Sales volume: EMEA 610,048 Americas 286,296 tonnes 164,860 47% 27% Global Cocoa Asia Pacific 119,386 39,506 20% 6% EMEA Americas Asia Pacific Global
Slide 16: Raw materials: price developments of key raw materials
Raw materials Price developments of key raw materials Change Q1 2021/22 160% (average): Milk powder +36.0% 140% 120% 100% Sugar World +31.3% 80% Sugar EU +28.8% 60% Cocoa beans +2.1% 40% 20% 0% Feb-12 Feb-13 Aug-11 Nov-11 Feb-14 Aug-12 Nov-12 Feb-15 Feb-16 May-12 Aug-13 Nov-13 Feb-17 May-13 Aug-14 N
Slide 17: Cocoa Combined Ratio development
Financial review Cocoa Combined Ratio development European Combined Ratio – 6-month forward ratio Combined Ratio gives broad indication… 4.00 Shows high level industry 3.50 direction, assuming many Combined variables are fixed. 3.00 Ratio 3.4x However… 2.50 Many variables are not fixed e.g. Butter R
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK 3-Month Key Sales Figures 2021/22 18 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 19: 'Smart growth' will continue to be at the heart of our long-term strategy
Strategy & Outlook ‘Smart growth’ will continue to be at the heart of our long- term strategy execution 19 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 20: Continue to capitalize on strong team and sharpened business model
Strategy & Outlook Continue to capitalize on strong team and sharpened business model Expansion Cost Leadership Gourmet & Specialties market expansion Global Distribution Center Lokeren – smooth Mona Lisa, our global decorations brand, transition as an important milestone in currently continues to c
Slide 21: Innovation: Riding the wave of plant-based with 'Veganuary'
Strategy & Outlook Innovation Riding the wave of plant-based with ‘Veganuary’ 60%* of global consumers aged 18-44 years old think every brand should have a plant-based offer. COVID-19 accelerated trend of mindful eating, taking into account both health and planet, without compromising on taste – pla
Slide 22: Sustainability - 5th Forever Chocolate Progress Report
Strategy & Outlook Sustainability - 5th Forever Chocolate Progress Report 22 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 23: Outlook - Confident on mid-term
Strategy & Outlook Outlook - Confident on mid-term, while ripple effects of COVID-19 create continued challenging environment “With our strong team and sharpened business model, we are confident we will deliver on our mid term guidance. We are well placed to continue our growth journey in a global m
Slide 24: Save the Date: Capital Market Day 2022
Save the Date: Capital Market Day 2022 May 11-12, 2022 Belgrade / Novi Sad, Serbia 24 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 25: Appendix
APPENDIX 25 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 26: Strong recovery from COVID-19 on volume and mix
Financial review - Gross profit Strong recovery from COVID-19 on volume and mix In CHF million +10.8% +8 1,179 +60 1,147 -32 +47 1,064 Gross Profit Volume Mix Cocoa Gross Profit FX Gross Profit FY 2019/20 FY 2020/21, FY 2020/21 in LC 26 3-Month Key Sales Figures 2021/22 Roadshow presentation
Slide 27: Operating profit (EBIT) up +18.9%
Financial review - EBIT bridge Operating profit (EBIT) up +18.9% thanks to strong recovery and good cost management In CHF million +18.9% +115 584 567 -22 -17 8 491 483 EBIT FY Factory EBIT FY Gross SG&A, EBIT FY FX EBIT FY 2019/20 closure 2019/20, Profit Scope 2020/21, 2020/21 costs recurring in LC
Slide 28: Net profit up +24% compared to prior-year recurring
Financial review - EBITDA to Net profit bridge Net profit up +24% compared to prior-year recurring thanks to strong profitability and lower financing cost and taxes In CHF million ETR 795 FY 2020/21: 17.3% FY 2019/20: 18.2%1 567 +78 -229 +24.2% (PY -221) 385 12 397 -101 (PY -102) 319 -81 (PY -69) EB
Slide 29: Raw material price development
Financial review Raw material price development Change FY 2020/21 150% (average): Milk powder +11.6% 100% Cocoa beans -7.0% Sugar World +22.3% Sugar EU +3.6% 50% 0% Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 29 3-Month Key Sales Figures 2021/22
Slide 30: Strong Free cash flow as a result of good EBITDA
Financial review - Free cash flow Strong Free cash flow as a result of good EBITDA and efficient working capital management In CHF million +11.7% 795 712 -81 (PY +108) 315 -163 40 355 (PY (PY -149) (PY -87) (PY +317) +404) -275 39 (PY - 281) EBITDA EBITDA Change Interest and CAPEX Other FCF RMI FCF
Slide 31: Continued Net debt reduction on the back of strong FCF generation
Financial Review – Net debt Continued Net debt reduction on the back of strong FCF generation In CHF million - -85 139 355 1.366 - 40 12 1.281 734 79 -47 547 594 Net Dividend Free Change Lease FX/Othe Net debt Adj. Adjusted Adjuste debt s& cash in Lease payment r Aug’21 Net debt d Net Aug’20 Treasur
Slide 32: Strong Balance sheet
Financial review - Key figures Strong Balance sheet in CHF million Aug 21 Aug 20 Net working capital 1,242 1,192 Non-current assets 2,978 2,800 Total assets 7,244 7,141 Net debt 1,281 1,366 Adj. Net debt1 547 594 Shareholders’ equity 2,683 2,354 ROIC 12.2% 10.3% ROE 14.3% 13.2% Net debt / Equity rat
Slide 33: Proposed payout of CHF 28.00, payout ratio of 40%
Dividend Proposed payout of CHF 28.00, payout ratio of 40% 39% 37% 39% 39% 40% Proposed dividend Payout ratio 385 • CHF 28.00 per share 357 369 311 • Stable payout ratio of 40% of Net profit 281 Timetable for dividend Net profit reported in CHF millions • Shareholder approval: December 8, 2021 • Ex-
Slide 34: Robust liquidity profile with no outstanding amounts under the Revolving Credit Facility
Appendix Robust liquidity profile with no outstanding amounts under the Revolving Credit Facility and no utilization under the Commercial Paper program 5,498 As of August 31, 2021 ABS CHF 929 Various uncommitted facilities 49% EUR 750 M Commercial Paper Program Maturity 2024 EUR 1 B Revolving 1,613
Slide 35: 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 36: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) 2016-21 average: +0.9% North America (22% of market) FY 2020/21: +2.1% 2016-21 average: +0.3% FY 2020/21: +1.2% EEMEA (24% of market) 2016-21 average: +0.9% FY 2020/21: -2.5% Asia Pacific (14% of market
Slide 37: 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 2020-2025 (Pure chocolate/compound volumes) 37 3-Month Key Sales Figures 2021/22 Roadshow presentation