Barry Callebaut AG · SIX:BARN
Barry Callebaut — Q1 2005/06 Earnings Presentation
29 slides from Barry Callebaut's earnings presentation, Jan 11, 2006
Slide 1: 3-month results 2005/06
3-month results 2005/06 Analyst and Media Presentation January 11, 2006 January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 1
Slide 2: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements Forward-looking statements Any information given on these slides as well as during the conference call has been prepared by Barry Callebaut solely for the use at this analyst presentation. Certain statements contained therein regarding the business of Ba
Slide 3: Agenda
Agenda X Highlights first quarter 2005/06 and business review X Financial results X Outlook January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 3
Slide 4: Highlights first quarter 2005/06
Highlights first quarter 2005/06 Good start into fiscal year X Strong results X Sales volumes up 2.0% to 299,417 tonnes X Sales revenues increased by 3.8% to CHF 1,198.5 m X EBIT at CHF 100.1 m, up 14.7% X Net profit (PAT) at CHF 63.9 m, up 15.8% X All business units contributed to the increase in o
Slide 5: Financial Highlights first quarter 2005/06
Financial Highlights first quarter 2005/06 % change 2005/06 2004/05 3-months 3-months Revenue from sales and services CHF m 3.8 1'198.5 1'154.8 in local currencies 1.5 1'172.2 Gross Profit CHF m 10.3 192.7 174.7 in local currencies 8.1 188.8 EBITA CHF m 14.4 103.1 90.1 in local currencies 12.7 101.5
Slide 6: Industrial Business Segment
Industrial Business Segment Strong organic growth Cocoa X Sales volumes decreased by 2.1% to 32,918 tonnes, mainly due to lower butter and liquor sales X Sales revenue decreased by 18.3% to CHF 112 million, due to substantially declined powder ratios, partly offset by positive currency effects and s
Slide 7: Food Service/Retail Business Segment
Food Service/Retail Business Segment Strong Gourmet, recovering European Consumer business Gourmet & Specialties X Sales revenue growth1) of 9.2% to 157.4 million, organic growth being at 7.6% X Consumer Africa division now reported under Consumer Products Consumer Products X Sales revenues1) decrea
Slide 8: Restructuring Germany
Restructuring Germany On track as announced in July 2005 Implementation of restructuring program according to plan X Improved performance due to better product mix and related sales prices X Growing co-manufacturing business with branded consumer goods companies X Integration on the group’s SAP plat
Slide 9: Agenda
Agenda X Highlights first quarter 2005/06 and business review X Financial results X Outlook January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 9
Slide 10: Financial summary first quarter 2005/06
Financial summary first quarter 2005/06 P&L X Sales volume grew 2% to more than 299,417 tonnes (entirely organic) X Sales revenues increased by 3.8% to CHF 1,198.5 million, partly due to higher sales volumes as well as positive currency effects and slightly higher cocoa bean prices X Gross profit ma
Slide 11: Sales revenue reconciliation
Sales revenue reconciliation First quarter 2004/05 – 2005/06 26 0 1‘199 8 10 1‘155 (CHF m) Cocoa Volumes & Currency Acquisitions price Margins (net) Sales Sales Revenue + + + Revenue Q1 Q1 04/05 05/06 14 64 1‘199 -9 1‘155 -25 1HY Sales Cocoa Food Gourmet & Consumer 1HY Sales Revenues Sales Manufactu
Slide 12: Powder and Butter price development
Powder and Butter price development Dutch-German alkalised 10/12 Powder price vs. Butter price (in €/kg) 6-month forward deliveries, ex-factory, monthly average 4.50 4.50 4.00 4.00 Powder price 3.50 Butter price 3.50 3.00 3.00 (in euro / kg) (in euro / kg) 2.50 2.50 2.00 2.00 1.50 1.50 1.00 1.00 0.5
Slide 13: Profitability ratios and P&L structure
Profitability ratios and P&L structure 2005/06 2004/05 3-months 3-months Gross profit as % of sales 1) 16.1% 15.1% EBIT as % of Gross Profit 51.9% 50.0% EBIT as % of Sales 8.4% 7.6% EBIT per tonne (CHF) 334.3 297.3 Comments X Gross Profit as % of Sales up mainly due to margin improvements in Cocoa a
Slide 14: From EBIT to PAT
From EBIT to PAT % change 2005/06 2004/05 3-months 3-months EBITA CHF m 14.4 103.1 90.1 Operating profit (EBIT) CHF m 14.7 100.1 87.3 Financial costs, net CHF m -2.4 -20.2 -20.7 Taxes CHF m 38.3 -15.9 -11.5 Tax rate in % 19.9 17.3 Net Profit (PAT) CHF m 15.8 63.9 55.2 January 11, 2006 3-month result
Slide 15: Sustained strong development in first quarter 2005/06
Sustained strong development in first quarter 2005/06 EBIT per ton and PAT for first quarter CHF m CHF 100 340 90 320 80 300 70 280 60 260 50 240 40 30 220 20 200 2002/03 2003/04 2004/05 2005/06 EBIT in CHF m PAT in CHF m EBIT/ton in CHF January 11, 2006 3-month results 2005/06 – Analyst and Media P
Slide 16: Seasonality of business at EBIT level
Seasonality of business at EBIT level CHF m EBIT per Quarter (in CHF m) 140 120 100 100 80 92 87 79 73 77 60 58 58 51 40 46 32 28 20 20 0 Q1 Q2 Q3 Q4 2002/03 2003/04 2004/05 2005/06 January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 16
Slide 17: Balance sheet
Balance sheet Key figures (in CHF m) % change 30.11.2005 31.08.2005 Total assets 12.5% 2'997.0 2'664.8 Net working capital 31.5% 1'092.4 830.8 Net debt 18.0% 1'125.3 953.5 Shareholders' equity 11.1% 929.3 836.7 Comments X Increases in net working capital and net debt are due to higher accounts recei
Slide 18: Movements in Net debt (in CHF m)
Movements in Net debt (in CHF m) November 2005 vs. August 2005 Net Purchase of Treasury shares Net debt -2m – 172 m Capex/ Acquisitions - 23 m FX Impact Operations -5m - 142 m1) 1) - Operating cash-flow + 92 m - CF from NWC changes - 242 m January 11, 2006 3-month results 2005/06 – Analyst and Media
Slide 19: Balance sheet and financing ratios
Balance sheet and financing ratios 30.11.2005 31.08.2005 30.11.2004 Debt to equity ratio 121% 114% 123.4% Solvency ratio 31.0% 31.4% 29.6% Net debt /EBITDA* 2.9 x 2.5 x 2.9 x Interest cover ratio* 4.7 x 4.6 x 4.0 x *before restructuring of CHF 94 million (rolling 12-months EBITDA) Comments X Debt to
Slide 20: Agenda
Agenda X Highlights first quarter 2005/06 and business review X Financial results X Outlook January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 20
Slide 21: Outlook
Outlook "We have had a good Christmas business, our order books for the upcoming Easter season in Food Manufacturers and Gourmet & Specialties look good, and the positive signals from our European consumer business that we had observed in the final quarter of the past fiscal year were confirmed this
Slide 22: Backup
Backup January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 22
Slide 23: Key figures
Key figures Income statement % of 2005/06 % of 2004/05 (in CHF m) revenue 3-months revenue 3-months Sales Revenue 100.0 1'198.5 100.0 1'154.8 Cost of goods sold 83.9 (1'005.8) 84.9 (980.1) Gross Profit 16.1 192.7 15.1 174.7 Other operating expenses 7.7 (92.6) 7.6 (87.4) Operating Profit (EBIT) 8.4 1
Slide 24: Trading history
Trading history Share price performance 450 Barry Callebaut SPI Swiss Performance Index SPI SML & MID Comp Index 400 C HF (S PI/S PIS MC inde x e d) 350 300 250 200 150 Sep 2004 Nov 2004 Jan 2005 Mrz 2005 Mai 2005 Jul 2005 Sep 2005 Nov 2005 Jan 2006 January 11, 2006 3-month results 2005/06 – Analyst
Slide 25: Trading history
Trading history Share price performance and daily volume Share Price in CHF Barry-Callebaut share price and volume Volume 500 35000 450 30000 400 350 25000 300 20000 250 15000 200 150 10000 100 5000 50 0 0 Nov 2004 Jan 2005 Mrz 2005 Mai 2005 Jul 2005 Sep 2005 Nov 2005 Jan 2006 January 11, 2006 3-mon
Slide 26: Cocoa price development
Cocoa price development London Cocoa 2nd Position Daily High, Low, Close (in £/ton) 1100 1050 1000 950 900 850 800 750 700 10. Nov 04 15. Dez 04 06. Apr 05 12. Mai 05 22. Jul 05 07. Nov 05 12. Dez 05 01. Sep 04 06. Okt 04 24. Jan 05 28. Feb 05 26. Aug 05 03. Okt 05 17. Jun 05 January 11, 2006 3-mont
Slide 27: Hazelnut price development
USD/100 kg 170 270 370 470 570 670 770 870 970 1070 1170 Jul-96 January 11, 2006 Okt-96 Dez-96 Feb-97 Mai-97 Jul-97 Okt-97 Dez-97 Apr-98 Jul-98 Sep-98 Dez-98 Mrz-99 Jun-99 Sep-99 Dez-99 Mrz-00 3-month results 2005/06 – Analyst and Media Presentation Jun-00 Sep-00 Dez-00 curr. crop Mrz-01 Jun-01 pric
Slide 28: Top line by business unit
Top line by business unit First quarter 2002/03 – 2005/06 Sales Volume in Tonnes Sales Revenue in CHF m + 26.4% 500 + 10.6% 180000 450 160000 400 166'229 447 402 411 140000 350 151'094 150'233 148'345 120000 -1.6% 300 100000 250 + 14.6% 318 80000 200 33'639 33'466 32'918 31'492 60000 150 157 144 400
Slide 29: Operating Profit per Quarter
Operating Profit per Quarter EBIT per quarter (in CHF m) Q1 Q2 Q3 Q4 Full year 2004/05 87.3 72.4 28.4 77.2 265.3 2005/06 100.1 January 11, 2006 3-month results 2005/06 – Analyst and Media Presentation 29