Barry Callebaut Ag · SIX:BARN
Barry Callebaut — H1 2011/12 Earnings Presentation
37 slides from Barry Callebaut's earnings presentation, Apr 2, 2012
Slide 1: Media Conference – Half-year results 2011/12
Barry Callebaut Media Conference – Half-year results 2011/12 April 2, 2012 April 2012 Barry Callebaut – Media Conference – HY results 2011-12
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: Agenda
Agenda Highlights HY 2011/12 Financial and operational performance Strategy & Outlook Q&A April 2012 Barry Callebaut – Media Conference – HY results 2011-12 3
Slide 4: Accelerated top-line growth, investing in the future
Half-year results 2011/12 Accelerated top-line growth, investing in the future Sales volume up +6.7%; Sales revenue +10.4% in local currencies Growth across all Regions and Product Groups: particularly strong in Americas, Eastern Europe and Asia as well as in Specialty products Investing in fu
Slide 5: Global chocolate confectionery volume was flat, Gourmet grew between 1-2%
Global chocolate confectionery volume was flat, Gourmet grew between 1-2% 5 Months Sep-Jan 2012 (in 1,000 tonnes)1 USA2 Western Europe 3 Eastern Europe 4 -2.9% -2.0% 5.6% 692 672 458 449 349 368 2011 2012 2011 2012 2011 2012 Asia-Pacific 5 Total Top 18 countries 6.9% 0.0% 69 73 Brazil 5.5% 2011 2012
Slide 6: Growth across all Regions and Product Groups
Growth across all Regions and Product Groups Sales Volume per Region – H1 2011/12 Six months volume growth vs. prior year Asia- Pacific Europe +3.0% Global 4% Sourcing & Cocoa Americas +18.6% 19% Europe Asia-Pacific +7.9% 52% Global Sourcing & Cocoa +2.9% Americas 25% Food Manufacturers +8.2% Gourme
Slide 7: Further steps along our strategic direction
Highlights first six months – H1 2011/12 Further steps along our strategic direction Joint Venture with Closing of the P.T. Comextra Global long-term Long-term outsourcing divestiture of our Majora, building a new partnership agreement agreement with Group European consumer cocoa processing with Uni
Slide 8: Raw materials down or sideways
Raw material price development Raw materials down or sideways Cocoa bean price (GBP/tonne) White Sugar average price (EUR/tonne) london n°5 (2nd EU white sugar EU ref. Price White 2800 position) 2500 March 2012 950 1479 GBP/ton March 2012 850 800 €/ton 2200 750 1900 650 1600 550 1300 450 1000 350 70
Slide 9: Agenda
Agenda Highlights HY 2011/12 Financial and operational performance Strategy & Outlook Q&A April 2012 Barry Callebaut – Media Conference – HY results 2011-12 9
Slide 10: Key Figures H1 2011/12 – from continuing operations
Key Figures H1 2011/12– from continuing operations Accelerated top-line growth, investing in the future Six months - Sep 2011-Feb 2012 Change in % Change in % H1 H1 In local 2011/12 2010/11 currencies (restated) Sales volume [in tonnes] 6.7% 699'058 655'065 Sales revenue [CHF m] 10.4% 3.0% 2'476.9 2
Slide 11: Region Europe: Volume rebound under challenging market conditions
Region Europe Volume rebound under challenging market conditions Europe • Western Europe returned to positive growth rates in Q2, outperforming a market which declined -2.9%. • Growth driven by strategic customers, as well as Specialties • Eastern Europe showed double digit growth, both in FM and Go
Slide 12: Region Americas: Strong performance, top and bottom-line
Region Americas Strong performance, top and bottom-line Americas • Chocolate confectionery market in the US declined -2%; Brazil slowed down to 5.5% • We maintained our growth momentum. In North America and Mexico, Corporate and National accounts, as well as Gourmet achieved a double-digit growth ra
Slide 13: Region Asia-Pacific: Accelerated growth with further potential
Region Asia-Pacific Accelerated growth with further potential Asia- Pacific • Good volume growth amid a strong market development • Industrial sales accelerated in Q2 after capacity constraints limited opportunities earlier in the year • Gourmet & Specialties Products business grew at double digit r
Slide 14: Global Sourcing & Cocoa: Volume growth picking-up
Global Sourcing & Cocoa Volume growth picking-up Global Sourcing & Cocoa • Ongoing capacity expansions at existing factories and higher internal cocoa powder demand led to a decline in growth in our first quarter. Then, volume picked-up in Q2. • Sales revenue went up by +17% in local currencies driv
Slide 15: Impact from investments in future growth
Impact from investments in future growth Future volume growth requires: Investing cycle for future growth • Additional production capacity: lower utilization and higher fixed costs at the beginning Volume (MT) • Additional overhead, such as QA, planning and supply chain management, customer service,
Slide 16: First six months impacted by some inefficiencies and shaping the organization
Gross Profit – February 2012 – from continuing operations First six months impacted by some inefficiencies and shaping the organization for future growth in mCHF 2.8% +7.2 -19.8 +22.6 361.8 -23.6 351.8 338.2 Gross Profit H1 Volume Product mix, Scope effect, Gross profit Negative Gross Profit H1 2010
Slide 17: EBIT decline due to additional costs, investments in future growth and negative FX
EBIT – February 2012 – from continuing operations EBIT decline due to additional costs, investments in future growth and negative FX in mCHF -5.4% +10.0 -9.5 200.2 -11.4 189.3 -14.2 175.1 EBIT Additional Additional Scope effect, EBIT before Negative EBIT H1 Gross Profit SG&A ramp up costs, FX effect
Slide 18: Net profit from continuing operations
From EBIT to PAT Net profit from continuing operations Change in Change H1 % in % H1 2010/11 In local CHF 2011/12 (restated) currencies Operating profit (EBIT) -5.5% -12.5% 175.1 200.2 Financial items -15.1% -7.1% (31.8) (29.7) Result from investments in associates and 0.3 0.9 joint ventures [CHF m]
Slide 19: Solid balance sheet with strong ratios
Balance Sheet Solid balance sheet with strong ratios Change Feb 12 Feb 11 in % Total Assets [CHF m] -2.6% 3'875.7 3'979.1 Net Working Capital [CHF m] -0.9% 1'045.1 1'054.1 Non-Current Assets [CHF m] -3.9% 1'353.1 1'408.4 Net Debt [CHF m] 1.0% 965.5 956.2 Shareholders' Equity [CHF m] -2.8% 1'301.0 1'
Slide 20: Our performance in relation to our mid-term guidance
Our performance in relation to our mid-term guidance Volume development (in tonnes)* CAGR 9.4% yoy growth 7.2% 12.3% 5.1% 13.4% 6.7% H2 H1 FY 06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 * Excluding consumer business April 2012 Barry Callebaut – Media Conference – HY results 2011-12 20
Slide 21: Our performance in relation to our mid-term guidance
Our performance in relation to our mid-term guidance EBIT development (in Local currencies)* CAGR 9.2% 15.3% yoy growth 9.8% 8.3% 5.8% H2 -5.5% H1 FY 06/07 FY07/08 FY08/09 FY09/10 FY10/11 HY11/12 * Excluding consumer business April 2012 Barry Callebaut – Media Conference – HY results 2011-12 21
Slide 22: Agenda
Agenda Highlights HY 2011/12 Financial and operational performance Strategy & Outlook Q&A April 2012 Barry Callebaut – Media Conference – HY results 2011-12 22
Slide 23: Our Strategy
Our Strategy Vision “Heart and engine of the chocolate industry” Expansion Innovation Strategic Sustainable, pillars profitable growth Cost leadership Sustainable Cocoa April 2012 Barry Callebaut – Media Conference – HY results 2011-12 23
Slide 24: Expansion of our manufacturing footprint in the last 12 months
Expansion Expansion of our manufacturing footprint in the last 12 months Thimister, Belgium Chekhov, Russia Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK Kagerod, Sweden Chester, UK Pennsauken, NJ, US St. Hy
Slide 25: Growth driven by emerging markets and long-term agreements
Expansion Growth driven by emerging markets and long- term agreements % of total consolidated sales volume* - 5 year development Emerging markets CAGR +15.0% 23% 22% Long-term 21% 16% agreements CAGR +62.3% 14% with strategic 15% 20% partners 11% 7% 10% 17% 2% Developed CAGR +2.4% 61% markets 64% 78
Slide 26: Outsourcing and Strategic Partner of choice
Expansion Outsourcing and Strategic Partner of choice 2006-07 Nestlé Cadbury Hershey Morinaga (February 2007) Schweppes (April 2007) (September 2007) (June 2007) 2010-11 Kraft Foods Green Mountain Hershey Extension Chocolates Turín Baronie Group (September 2010) Coffee Roasters (May 2011) (June 2011
Slide 27: Ramp-up phases of recent long-term strategic agreements/outsourcing deals
Expansion Ramp-up phases of recent long-term strategic agreements/outsourcing deals 1y 1y 3y 2y 1y 1y 1y 2007 2008 2009 2010 2011 2012 2013 2014 Today April 2012 Barry Callebaut – Media Conference – HY results 2011-12 27
Slide 28: Sharpen focus on global brands
Accelerating Gourmet business Sharpen focus on global brands “Growing Great Chocolate“ Ads 360 Campaign Press release & internal launch New website LAUNCH MAY ‘12 Activation through personalization Ambassador testimonials & recipes Calletize your advertising Digital & social media activation April 2
Slide 29: Sharpen focus on global brands
Accelerating Gourmet business Sharpen focus on global brands Upgrade core pack with new Callebaut design Next Generation re- closeable pack Build Cacao Barry premium distinctive brand image Reinforce the Cacao Barry core range with new White Chocolate Zéphyr™ April 2012 Barry Callebaut – Med
Slide 30: Growth through acquisitions / adjacencies
Accelerating Gourmet business Growth through acquisitions / adjacencies La Morella Nuts Specialist in producing a variety of high quality nut-based ingredients Planned launches as of May 2012: 8 new products under the Cacao Barry® brand 10 new products under the Callebaut® brand 50+ La M
Slide 31: Award winning products and initiatives
Innovation: Developed by Barry Callebaut Award winning products and initiatives Innovation Award for Terra Cacao™ (FiE Nov 2011) Most innovative Food Ingredient Award Confectionery Innovation of the year Barry Callebaut’s most successful specialties launch Innovation Award for Stevia choco
Slide 32: Project Spring
Cost Leadership Project Spring Objective: Streamline our internal processes to improve the overall service for our Customers and create competitive cost advantage Scope: Main focus areas in Western Europe • Customer Service • Pricing • Sales & Operations Planning • Quality Assurance • New Product In
Slide 33: Cocoa Horizons / Sourcing diversification
Sustainable Cocoa Cocoa Horizons / Sourcing diversification Cocoa Horizons: CHF 40 Million to be invested in 10 years in origin countries; largest program in Barry Callebaut’s history Goals: Increase cocoa farms productivity Increase amount of certified cocoa Improve livelihoods in cocoa c
Slide 34: International Conference: Chocovision
Other initiatives International Conference: Chocovision A platform for informed discussion, discourse and debate for 200 senior business leaders and stakeholders in the cocoa, chocolate and retail industry, organized by Barry Callebaut Strategy Sustainability Success April 2012 Barry Callebaut – Med
Slide 35: Confident to reach our mid-term financial targets
Outlook Confident to reach our mid-term financial targets Four-year average growth targets for 2009/10 –2012/13 Volumes: 6-8% EBIT: at least in line with volume growth * Our view for the 2009-2013 period reflects current economic forecasts for the markets we operate in as well as internal deve
Slide 36: Agenda
Agenda Highlights HY 2011/12 Financial and operational performance Strategy & Outlook Q&A April 2012 Barry Callebaut – Media Conference – HY results 2011-12 36
Slide 37: Summary
Summary Outpacing the market, significantly investing in future growth Volume up +6.7% EBIT decrease by 5.7% Net profit for the period CHF 121.8 mn Significant investments in future growth along our strategic pillars Investments in structures Ramp-up of outsourcing deals Investments