Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Non-Deal Roadshow (July 2020)
38 slides from Barry Callebaut's roadshow presentation, July 2020
Slide 1: Roadshow presentation: 9-Month Key Sales Figures 2019/20
Roadshow presentation 9-Month Key Sales Figures 2019/20 July 2020
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: BC at a glance
BC AT A GLANCE 3 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 4: Strong values & a strong team
BC at a glance - Who are we? Strong values & a strong team We are the heart and A merger between Cacao Barry, the very first French engine of the chocolate and cocoa industry chocolate connoisseur since 1842 and Callebaut a Belgian chocolate couverture manufacturer expert since 1911 Listed on the SI
Slide 5: This is Barry Callebaut: Full-Year 2018/19
BC at a glance – This is Barry Callebaut ‘Shaping the world of chocolate and cocoa’ Full-Year 2018/19 0 0 0 5 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 6: 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 the chocolate and cocoa products 6 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 7: 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 BC BC Cargill Cargill Olam Fuji Oil ECOM Puratos Fuji Oil Cémoi Guan Chong Clasen Mondelez Guan Chong Nestlé Irca Ferrero Kerry Group BT Cocoa Guittar
Slide 8: A broad offering with cost plus model on majority of business
BC at a glance – offering and business model A broad offering with cost plus model on majority of business Cocoa Products Food Manufacturers Gourmet & Specialties % share: 22%* of volume 66%* of volume 12%* of volume Customer: Small, medium and Global Small, medium and Global Professionals, Food Cha
Slide 9: A global footprint and local service: 62 factories worldwide
BC at a glance - where are we present? A global footprint and local service: 62 factories worldwide Cocoa & Chocolate factories Chocolate Academy Cocoa factories in countries of origin and chocolate factories close to our customers. With our 23 Chocolate Academies worldwide we are at the pulse of an
Slide 10: West Africa is the world's largest cocoa producer
BC at a glance – Cocoa bean sourcing West Africa is the world’s largest cocoa producer Total world harvest (18/19): 4,745 TMT About 70% of total cocoa beans are others 12% of West African Origin Brazil* 4% Barry Callebaut processed around 1 Ivory Coast* 45% Cameroon* million tonnes or approximately
Slide 11: Highlights
HIGHLIGHTS 9-Month Key Sales Figures 2019/20 11 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 12: Good momentum of first six months impacted by COVID-19 in third quarter; updated mid-term guidance
9-Month Key Sales Figures 2019/20 Good momentum of first six months impacted by COVID-19 in third quarter; updated mid-term guidance Sales volume down –1.3% in the first nine months, due to COVID-19 third quarter sales volume down –14.3% Sales revenue of CHF 5.2 billion, up +0.4% in local currencies
Slide 13: Negative impact of COVID-19 in third quarter
9-Month Key Sales Figures 2019/20 Negative impact of COVID-19 in third quarter Cocoa FY 2018/19 9M 2019/20 Chocolate +5.1% -1.3% +10.6% +8.2% +10.6% +5.3% +10.2% +3.1% +3.0% +1.7% +10.7% +2.5% +7.7% +5.9% +2.5% +2.9% +4.3% +2.5% -14.3% -2.4% -0.9% -14.6% -14.1% Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1
Slide 14: All Regions impacted by COVID-19 in third quarter, APAC holding up well
9-Month Key Sales Figures 2019/20 All Regions impacted by COVID-19 in third quarter, APAC holding up well Group Sales volume: Americas EMEA 1,568,878 413,234 715,753 tonnes 26% 46% APAC Global Cocoa 97,228 342,663 6% 22% Volume EMEA Americas Asia Pacific Global Cocoa growth: Q3 2019/20 -17.1% -12.1%
Slide 15: Focus on COVID-19 impact Q3: April worst hit, improving trend
COVID-19 impact in third quarter Focus on COVID-19 impact Q3: April worst hit, improving trend 9M 2019/20 Q3 2019/20 Q4 2019/20 -1.3% -14.3% 10% 10% 10% 0% 0% 0% -10% -10% -10% -20% -20% -20% -30% -30% -30% -40% -40% -40% -50% -50% -50% -60% -60% -60% Q1 19/20 Q2 19/20 Q3 19/20 March’20 April’20 May
Slide 16: Emerging Markets and Outsourcing keeping up, Gourmet & Specialties more affected
Highlights 9-Month Key Sales Figures 2019/20 Emerging Markets and Outsourcing keeping up, Gourmet & Specialties more affected % of total % volume growth Group volume vs. prior year 36% +1.8% Emerging excl. Cocoa: Markets +2.7% Key growth drivers 34% Outsourcing crucial to -1.9% Long-term continuousl
Slide 17: Strong innovation pipeline and continued expansion
Highlights 9-Month Key Sales Figures 2019/20 Strong innovation pipeline and continued expansion Change in Barry Ruby receives Introduction Callebaut’s TMP as ‘4th Opening revamped ‘Cacaofruit Experience’ shareholder New leadership in Type of 3rd Forever CHOCOLATE ACADEMY including ‘Wholefruit struct
Slide 18: Cocoa Combined Ratio development
Cocoa processing profitability Cocoa Combined Ratio development European combined ratio - 6 month forward ratio Directionally right… 4.0 Shows general high level Combined industry direction, assuming 3.5 ratio 3.7 many variables are fixed. 3.0 However… Butter Ratio Many variables are not fixed e.g.
Slide 19: Raw material price development
Raw material Raw material price development 200% 180% 160% Increase 9M 2019/20 (average) 140% 120% 100% Milk powder +28.2% Cocoa beans +11.4% 80% Sugar EU +11.6% Sugar World +1.9% 60% 40% 20% 0% Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 19 9-Month Key Sales Figures 2019/2
Slide 20: Strategy & Outlook
STRATEGY & OUTLOOK 20 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 21: Continued focus long-term strategy – agile execution management
Strategy & Outlook Continued focus long-term strategy – agile execution management COVID-19 21 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 22: COVID-19 – effective crisis management: BC CARES
Strategy & Outlook COVID-19 – effective crisis management 3 objectives in managing the COVID-19 pandemic: BC Care: Protect the health of employees Continuity: Maintain operations running and continue to CARES service customers Cash: Ensure access to liquidity by drawing the RCF, continued optimizati
Slide 23: Confident outlook – updated mid-term guidance
Strategy & Outlook Confident outlook – updated mid-term guidance Signs of sales volume recovery in June. Group should rapidly regain momentum as markets are gradually reopening Updated mid-term guidance, valid for the 3-year period 2020/21 to 2022/23, with increased metrics of on average: • +5-7% vo
Slide 24: Appendix
APPENDIX 24 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 25: 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 26: Gross profit up +6.1% in local currencies
Gross profit bridge Gross profit up +6.1% in local currencies, mainly supported by good volume growth and positive mix In CHF millions +6.1% 12 -8 625 -17 607 32 589 Gross profit Volume Mix Cocoa Gross profit FX impact Gross profit HY 2018/19 HY 2019/20 HY 2019/20 Pro-forma in LC IFRS 16 26 9-Month
Slide 27: Operating profit (EBIT) recurring up by +6.7% in local currencies
EBIT bridge Operating profit (EBIT) recurring up by +6.7% in local currencies In CHF million +6.7% -16 322 36 -8 302 -11 304 EBIT Additional Additional EBIT Factory FX EBIT HY 2018/19 Gross profit SG&A, scope HY 2019/20 closure costs HY 2019/20 Pro-forma recurring, in LC IFRS 16 27 9-Month Key Sales
Slide 28: Net profit recurring up +11.6% in local currencies
EBITDA to Net profit bridge Net profit recurring up +11.6% in local currencies, as a result of improved profitability and lower financial result In CHF million 413 Tax rate: 19.6% vs (PY 4061) PY 19.3% +11.6% 304 +3.1% (PY 3021) (in CHF) -110 (PY -85) 9 220 -50 204 8 198 (PY -55) -50 (PY -48) EBITDA
Slide 29: Adjusted Free cash flow similar as prior-year
Free cash flow Adjusted Free cash flow similar as prior-year on the back of improved working capital management In CHF million +1.7% 406 413 -174 (PY -218) -73 -18 -341 -359 (PY -68) (PY -10) (PY -109) (PY -119) -148 -36 (PY -127) (PY -3) EBITDA Change in Interest Capex Others FCF Adjustment FCF 6m
Slide 30: Net debt flat versus prior-year excluding IFRS 16 adoption
Financial Review – Net debt Net debt flat versus prior-year excluding IFRS 16 adoption. Adjusted for RMI, Net debt decreased In CHF million +211 +6 71 -65 1,975 1,981 1,770 205 -1,099 -161 1,043 882 161 Net IFRS 16 Adj. Net Free Cash FX Impact Net Adjustment Adjuste Adjuste Debt Leases Debt Flow for
Slide 31: Balance sheet
Financial Key Figures Balance sheet (in CHF million) Feb 20 Aug 19 Feb 19 Pro-forma1 Pro-forma1 Total assets 7,550 6,712 7,024 Net working capital 1,838 1,363 1,762 Non-current assets 2,854 2,857 2,846 Net debt 1,981 1,510 1,975 Adj. Net debt2 882 817 1,043 Shareholders’ equity 2,403 2,399 2,384 Deb
Slide 32: Forever Chocolate Progress Report – increasing our impact
Sustainability Forever Chocolate Progress Report – increasing our impact 32 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 33: Forever Chocolate Progress Report – increasing our impact
Sustainability Forever Chocolate Progress Report – increasing our impact 33 9-Month Key Sales Figures 2019/20 Roadshow presentation
Slide 34: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) North America (22% of market) 2014-19 CAGR: -0.3% 2014-19 CAGR: -0.5% 9M 2019/20: +0.7% 9M 2019/20: -3.4% EEMEA (24% of market) 2014-19 CAGR: -0.3% 9M 2019/20: +2.0% Asia Pacific (14% of market) 2014-19
Slide 35: 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 2018-2023 5 2’500 4 2’000 Volume growth 3 GBP / tonne Chocolate confectionery 1.3% 2 1’500 1 1’000 0 Ice cream 2.2% 500 -1 -2 0 Sweet biscuits 1.9% 2020
Slide 36: Long-term EBIT per tonne development
Long-term EBIT per tonne development Increase in EBIT thanks to enhanced product and customer mix and continued improvement in Cocoa business In CHF millions 327 312 312 290 282 274 279 283 271 286 251 281 272 256 242 223 231 231 219 2,036 2,140 1,795 1,834 1,914 1,717 1,379 1,536 1,210 1,269 2009/1
Slide 37: Solid liquidity profile with no outstanding amounts under the Revolving Credit Facility
Appendix Solid liquidity profile with no outstanding amounts under the Revolving Credit Facility as per HY end CHF 4,640 M As of 29 Feb 2020 ABS CHF 936 M Various uncommitted facilities -49% EUR 750 M Domestic Commercial Paper Programme CHF 2,352 M ABS EUR 750 M Revolving Maturity 2024 Credit Facili
Slide 38: Keep well, keep safe, keep going
KEEP WELL, KEEP SAFE, KEEP GOING 38 9-Month Key Sales Figures 2019/20 Roadshow presentation