Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Investor Presentation (September 2023)
24 slides from Barry Callebaut's investor presentation, Sep 6, 2023
Slide 1: Unlocking our full potential – BC Next Level
Unlocking our full potential BC Next Level Peter Feld, CEO September 6, 2023
Slide 2: Disclaimer
Disclaimer 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 ‘believe,
Slide 3: Announcing strategic investment program BC Next Level
Announcing strategic investment program BC Next Level Plan paves way Closer to markets CHF 500M CHF 250M annual for next decade & customers investment in cost reductions of sustainable while fostering core customer supporting growth and value simplicity and areas and in margins and creation digitiza
Slide 4: We are uniquely positioned and operating in a great market
We are uniquely positioned and operating in a great market Present in an attractive market Global market leader with global still evolving after 2,000 years businesses and global footprint Resilient business model that is able Critical global value chain to deliver sustainable growth presence at sca
Slide 5: We have delivered robust growth for 25 years
We have delivered robust growth for 25 years CAGR +6% 2011 1998 2007 2012 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Unlocking our full potential – BC Next Level 5 Note: Chart shows sales volume for the Fiscal Year ending August 31st.
Slide 6: We serve and grow across all key customer segments
We serve and grow across all key customer segments +5% Regional Global Accounts CPGs Vol Food Artisans Service CM Chains FY2020/21 FY2021/22 Chains, Artisans & Foodservice Regional Accounts 6 Unlocking our full potential – BC Next Level Note: Vol = Volume; CM = Contribution Margin; Data as of FY2021
Slide 7: We create value for our customers through strong partnerships
We create value for our customers through strong partnerships Truly global reach with Manufacturing and Chocolate Academies and ability to support scale sustainability expertise R&D ~30% of our sales come from products created in the last 3 years Co-creation Game-changing innovation Our strategic pa
Slide 8: My key priorities …
My key priorities … 8 Unlocking our full potential – BC Next Level
Slide 9: Taking decisive action for Wieze and across BC
Taking decisive action for Wieze and across BC … and how have we addressed it? • Our longstanding comprehensive quality program is being improved continuously Why did it happen… 1. Temporary supply • Areas where we have taken action: constraints Cross-functional accountability 2. Supplier used 3. Fa
Slide 10: Analyzing our business from several angles ...
Analyzing our business from several angles ... ... met with customers around the world and listened to their perspectives on our company ... spent time on the ground in our key cocoa bean sourcing countries ... reviewed how customers and consumers think about innovation & sustainability ... met with
Slide 11: … and building great confidence in our future
… and building great confidence in our future Enhanced by… Customer needs and Substantial opportunity to grow 1 consumer trends around innovation & sustainability faster than the market and 2 Expanded scope of our customers’ portfolios increase our relevance & stickiness to customers 3 Regulatory en
Slide 12: Focusing on four strategic growth levers
Focusing on four strategic growth levers New deeper Launch Scale up Increase share Outsourcing Gourmet 2.0 Specialties APAC Partnerships Amplify the relevance Expand contribution of Grow the category Increase the weight of and consistency of our Gourmet to our mix: through new customers our exposure
Slide 13: To unlock our full potential we must go to the Next Level
To unlock our full potential We must go to the Next Level 13 Unlocking our full potential – BC Next Level
Slide 14: BC Next Level: Paving the way for sustainable growth and value creation
Paving the way for sustainable growth and value creation BC Next Level Closer to customers Simplify & digitize BC & markets 14 Unlocking our full potential – BC Next Level
Slide 15: Paving the way for sustainable growth and value creation
Paving the way for sustainable growth and value creation Closer to customers & markets Simplify & digitize BC Strengthen growth focus through country Eliminate complexity that does not add value to clusters customers Elevate Gourmet and Specialties from “start-up” Reset manufacturing network for bes
Slide 16: We will invest CHF 500M over next 2 years
Net Investments, CHF M We will invest CHF 500M over CHF 210M of next 2 years net capital investments Investments in areas most relevant to customers and in efficiency measures 490 • Operating expenses of CHF 290M1: 1. Rightsizing costs 2. IT costs 3. Program costs 500 -280 • Net capital investments
Slide 17: BC Next Level will lead to CHF 250M annual cost savings
Approximate phasing of annualized cost savings realization in P&L1 BC Next Level will lead to CHF ~100% 250M annual cost savings CHF 250M annual cost savings stem from: ~70-80% 1. Reducing cost-to-serve in operations 2. Optimizing the manufacturing footprint 3. Streamlining the enabling functions 4.
Slide 18: BC Next Level will also transform our ways of working
BC Next Level will also transform our ways of working From To Current Operating Model BC Next Level Operating Model … to a simplified, scalable and consistent From bloated and diverging structures … organization with clear accountabilities and aligned KPIs … to local customer proximity – and functio
Slide 19: Design principles - BC Next Level Operating Model
Design principles - BC Next Level Operating Model Closer to customers Simplify & digitize BC & markets Leaner enabling 5 Regions x 5-6 country E2E customer supply & functions, e.g., Finance, Smarter sourcing clusters development HR, Technology Integrated offering across all categories Globally stand
Slide 20: Changes to leadership structure to reflect BC Next Level operating model
Changes to leadership structure to reflect BC Next Level operating model and new leadership appointments Changes to leadership Leadership appointments structure • Closer to markets with 5 regions instead Peter Vanneste Nov 1 of 3 regions Chief Financial Officer • Create Customer Supply & Development
Slide 21: We are the heart and the engine for the global cocoa & chocolate industry
We are the heart and the engine for the global cocoa & chocolate industry. ... now accelerating to the Next Level - Peter Feld 21 Unlocking our full potential – BC Next Level
Slide 22: November 1st - Strategic Update
November 1st - Strategic Update A full strategic update will be provided in conjunction with our FY 22/23 results announcement on November 1st This update will be presented at a hybrid (online/in-person) event taking place in London It will include mid-term guidance linked to the BC Next Level progr
Slide 23: Questions & Answers
Questions & Answers 23 Unlocking the full potential – BC Next Level
Slide 24: Thank you!
Thank you! www.barry-callebaut.com
Barry Callebaut — Investor Presentation (September 2023) on 6ix