Tate & Lyle Plc · LSE:TATE
Tate & Lyle — Investor Day (October 2004)
110 slides from Tate & Lyle's investor day presentation, October 2004
Slide 1: Value Added Seminar October 2004
VALUE ADDED SEMINAR OCTOBER 2004 Iain Ferguson Chief Executive
Slide 2: Agenda
Agenda Introduction Iain Ferguson Financials Simon Gifford New Customer Approach Greg Morency Break – product displays Bio-products John Roginski SPLENDA® Sucralose Austin Maguire Conclusion Iain Ferguson 2 SPLENDA® is a trademark of McNeil Nutritionals, LLC
Slide 3: Purpose and Vision
Purpose and Vision • PURPOSE To create the world’s leading renewable ingredients business • VISION We will grow by uniting our businesses and developing partnerships to create the world’s leading renewable ingredients business. We will build a consistent global portfolio of distinctive, profitable,
Slide 4: Vision into Action
Vision into Action • Change how we go to market • Change what we take to market • Select where we compete 4
Slide 5: Tate & Lyle Today
Tate & Lyle Today CEREAL SUGAR VALUE-ADDED SWEETENERS PARTNERSHIPS & STARCHES Staley TLS/Alcantara SPLENDA® Sucralose • Almex • Sugar Trading Sorona® Bio 3G • Citric Acid • United Molasses AquastaTM Astaxanthin Amylum Eastern Sugar • Eaststarch Redpath Sugar Occidente Vietnam 5 The DuPont Oval Logo,
Slide 6: Choosing How We Will Grow
Choosing How We Will Grow Economics of the Four Segments Cash for Growth Value Added – Consumer Excellent Growth Cash Generation per Unit Branded Opportunities Quota Constrained Cash and Low Cost/ High Volume Substrate for Growth Commodity 6 Growth Opportunities Data: Illustrative not to scale
Slide 7: The Silent Partners of Prepared Foods
The Silent Partners of Prepared Foods • Increasing demand for convenience and nutrition driven by socio-economic change • Organic growth opportunities for value-added ingredients • Our products help to provide convenience, reduced calories and fat, and improved functionality What makes value added?
Slide 8: We Are Asking Consumers What They Want
We Are Asking Consumers What They Want Health ‘‘ Convenience … I don’t have time to cook Pleasure from fresh … I don’t want to compromise on taste … my kids need energy and fun products … I want to eat more healthily, not ‘‘ diet … I don’t want to be misled by brands … the manufacturers have to be r
Slide 9: Responding to Evolving Consumer Trends and Customer Needs
We are Responding to Evolving Consumer Trends and Customer Needs Yesterday . . . Today . . . Strong brands Consumers are getting more Solid distribution sophisticated, more Great taste demanding and Traditional Ingredients increasingly health- conscious • Our customers focused on strong • Healthy, i
Slide 10: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 1985 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 10 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 11: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 1988 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 11 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 12: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 1991 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 12 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 13: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 1994 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 13 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 14: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 1997 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 14 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 15: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 2000 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 15 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 16: Obesity Trends Among U.S. Adults
Obesity Trends* Among U.S. Adults 2002 (*BMI 30, or ~ 30 lbs overweight for 5’4” person) No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 16 Source: Behavioral Risk Factor Surveillance System, CDC
Slide 17: Forecast 2005
Forecast 2005 No Data <10% 10%–14% 15%–19% 20%–24% ≥25% 17 Source: Behavioral Risk Factor Surveillance System, CDC / Mokdad AH
Slide 18: Research & Development Focus
Research & Development Focus Health and Wellness Initiatives – 30% SPLENDA® Sucralose, sweetener systems, wellness ingredients, delivery systems Customer Solutions - 30% CORE – Create/Optimize/Rebalance/Enrich, new food ingredients, unique ingredient systems Bio-Materials – 25% Bio 3G, packaging alt
Slide 19: The Starch Process
The Starch Process Corn Wet Milling Separation Starch Wheat Dry Milling Value Added Conversion Starches Co-products Glucose Syrup Hydrogenation Fermentation Refining Sorbitol 42 & 55 HFCS AquastaTM Crystalline Dextrose Bio-3G Crystalline Fructose Citric Acid Maltodextrin Ethanol 19 Xanthan Gum
Slide 20: What Do Our Products Do?
What Do Our Products Do? • Thicken • Enrich / Fortify • Bind • Encapsulate • Adhere • Emulsify • Strengthen • Gel • Sweeten • Agglomerate • Preserve • Coat • Suspend • Stabilise • Carry • Acidify • Improve Appearance • Provide Body • Extend Shelf-Life • Add Bulk • Provide Humectancy • Reduce Calorie
Slide 21: What Do Our Products Do?
What Do Our Products Do? • Thicken • Enrich / Fortify • Bind • Encapsulate • Adhere • Emulsify • Strengthen • Gel • Sweeten • Agglomerate • Preserve • Coat • Suspend • Stabilise • Carry • Acidify • Improve Appearance • Provide Body • Extend Shelf-Life • Add Bulk • Provide Humectancy • Reduce Calorie
Slide 22: What Do Our Products Do?
What Do Our Products Do? • Thicken • Enrich / Fortify • Bind • Encapsulate • Adhere • Emulsify • Strengthen • Gel • Sweeten • Agglomerate • Preserve • Coat • Suspend • Stabilise • Carry • Acidify • Improve Appearance • Provide Body • Extend Shelf-Life • Add Bulk • Provide Humectancy • Reduce Calorie
Slide 23: What Do Our Products Do?
What Do Our Products Do? • Thicken • Enrich / Fortify • Bind • Encapsulate • Adhere • Emulsify • Strengthen • Gel • Sweeten • Agglomerate • Preserve • Coat • Suspend • Stabilise • Carry • Acidify • Improve Appearance • Provide Body • Extend Shelf-Life • Add Bulk • Provide Humectancy • Reduce Calorie
Slide 24: What Do Our Products Do?
What Do Our Products Do? • Thicken • Enrich / Fortify • Bind • Encapsulate • Adhere • Emulsify • Strengthen • Gel • Sweeten • Agglomerate • Preserve • Coat • Suspend • Stabilise • Carry • Acidify • Improve Appearance • Provide Body • Extend Shelf-Life • Add Bulk • Provide Humectancy • Reduce Calorie
Slide 25: Summary
Summary • We are turning our vision into action through investment in – Consumer understanding – Sales and marketing experience – Research and development • We understand the drivers behind the growth in our value added starches • Our starches add functionality to our customers’ products 25
Slide 26: Value Added Seminar Financial Context
Value Added Seminar Financial Context Simon Gifford Group Finance Director
Slide 27: Group Strategy
Value Added & Consumer Branded Group Strategy Strategy announced September 2000: To grow the contribution to EBITA by value added and consumer branded products from a base of around 30-35% to 50% Target met and exceeded for the past three years 27
Slide 28: Analysis of FY2004 EBITA £251m
Analysis of FY2004 EBITA £251m Value Added 42% Commodity 24% Quota Consumer Constrained Total Branded 22% 54% 12% 28
Slide 29: Contribution to Profitability Year Ended March 2004
Contribution to Profitability Year Ended March 2004 100% 90% 80% 70% 60% Quota-Constrained 50% CB Commodity 40% VA & CB 30% 20% VA CB 10% VA 0% Sales £3.2bn EBITA £251m 29
Slide 30: Contribution to Profitability Year Ended March 2004
Contribution to Profitability Year Ended March 2004 Margin Category % Sales EBITA/Sales % % Contribution to Mgn Value added 15 23 3.4 Consumer branded 5 20 1.0 Quota constrained 16 10 1.6 Commodity 64 3 1.9 Group total 100 7.9 7.9 30
Slide 31: Group EBITA / Sales Margin FY01 to FY04
Group EBITA / Sales Margin FY01 to FY04 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% FY01 FY02 FY03 FY04 31
Slide 32: Product Analysis by Unit
Product Analysis by Unit UNIT Value Added Consumer Quota Commodity Branded Constrained Staley Redpath T&L Sugars Alcantara Amylum Sucralose Bio-3G 32 Astaxanthin
Slide 33: Value Added Product Applications
Value Added Product Applications l l er s ols Top 10 VA product ranges ea he rea ten gar los oh er r c e e e u s r a lc l s - cts contributed £75m to EBITA C ta C w S p c A o o u S S & yru Su & oly Bi rod s s S e P p Beverages Bakery Confectionery Dairy
Slide 34: Value Added Product Applications
Value Added Product Applications l l er s ols Top 10 VA product ranges ea he rea ten gar los oh er r c e e e u s r a lc l s - cts contributed £75m to EBITA C ta C w S p c A o o u S S & yru Su & oly Bi rod s s S e P p Beverages Bakery Confectionery Dairy
Slide 35: Value Added Product Applications
Value Added Product Applications l l er s ols Top 10 VA product ranges ea he rea ten gar los oh er r c e e e u s r a lc l s - cts contributed £75m to EBITA C ta C w S p c A o o u S S & yru Su & oly Bi rod s s S e P p Beverages Bakery Confectionery Dairy
Slide 36: Value Added Product Applications
Value Added Product Applications l l er s ols Top 10 VA product ranges ea he rea ten gar los oh er r c e e e u s r a lc l s - cts contributed £75m to EBITA C ta C w S p c A o o u S S & yru Su & oly Bi rod s s S e P p Beverages Bakery Confectionery Dairy
Slide 37: Value Added Product Applications
Value Added Product Applications l l er s ols Top 10 VA product ranges ea he rea ten gar los oh er r c e e e u s r a lc l s - cts contributed £75m to EBITA C ta C w S p c A o o u S S & yru Su & oly Bi rod s s S e P p Beverages Bakery Confectionery Dairy
Slide 38: Research & Development Expenditure
Research & Development Expenditure • Budgeted around £20m for FY05 Group R&D Expenditure in £m 25 • Focussed on value added 20 15 product development 10 (Staley, Amylum, sucralose) 5 0 FY02 FY03 FY04 FY05 fcst • ‘Rifle shot’ methodology 38
Slide 39: Financial Context Summary
Financial Context Summary • 50% target achieved and exceeded • Growth in value added will improve quality of profits and EBITA/sales margin • Value added products sold by several business units, to many different customers • Value added growth enabled by focussed R&D expenditure 39
Slide 40: Product Tasting
TATE h\ LYLE CONSISTENTLY FIRST IN RENEWABLE INGREDIENTS Product Tasting
Slide 41: A New Approach to Customers
Value Added Seminar A New Approach to Customers Greg Morency Vice President Marketing
Slide 42: Agenda – A New Approach to Customers
Agenda – A New Approach to Customers Why we are changing Changing how we go to market Changing what we take to market Product tasting Conclusion 42
Slide 43: Why We Are Changing
Why We Are Changing • Insight – a better understanding of market trends and customer needs • Building on our relationships with key customers • Providing solutions to new product strategies • We want to become a more relevant and valued customer partner… ..offering innovative solutions rather than i
Slide 44: Agenda – A New Approach to Customers
Agenda – A New Approach to Customers Why we are changing Changing how we go to market Changing what we take to market Product tasting Conclusion 44
Slide 45: Where Can We Look For Added-Value Growth?
Where Can We Look For Added-Value Growth? Where Is The Opportunity In Foods? Forecast category values, Retail Sales $bn Price, $bn 200 (North America, Western Europe) 22% 153 150 125 22% 103 23% 32% 100 84 84 82 2003 68 25% 2008 62 49 50 39 17% 38% 16 18 8 11 0 Beverages Bakery Confectionery Dairy S
Slide 46: Developing Leadership With Key Accounts and Category Leaders
Developing Leadership With Key Accounts and Influential Category Leaders Global Key Accounts & Mid-market Category Regional Key Accounts Leaders and Innovators • 30 global and regional • Aligned with target key accounts categories and our solutions expertise • Scale players in our • Proving our inno
Slide 47: From Supplier to Partner
From Supplier to Partner Strategic Relationship Top-to-Top • Sharing strategic priorities and consumer/market insights • Set frameworks • Listen to needs and set priorities • Agree review process Account Co-ordination/Planning Collaborative project • Routine price negotiation for commodities • Partn
Slide 48: A New Approach to Managing Delivery and Service
A New Approach to Managing Delivery and Service Targets and measures in place Tools and capabilities • Price and margin management • Real time data updates on Sharepoint • Shipping performance • Integrated CRM system • Customer satisfaction • Empowered delivery and • Global and regional performance
Slide 49: Customer Management Journey
Customer Management Journey Pro-activity • Proactive consumer research and concept H development • Negotiating exclusivity, support , price Why don’t we..? What do you need – how about ...? • Collaborative product development • Negotiating on price and added-value What do you need? • Proactive probl
Slide 50: Agenda – A New Approach to Customers
Agenda – A New Approach to Customers Why we are changing Changing how we go to market Changing what we take to market Product tasting Conclusion 50
Slide 51: We Are Helping Our Customers Respond Effectively
We Are Helping Our Customers Respond Effectively Consumer pressure Customer response Our new services Increasing the pace of . . . on brands innovation and new product development C TATE & LYLE CREATETM Innovations in taste, texture, form, coating, etc . . . on the bottom line Cutting costs and opti
Slide 52: New Sales Strategy – Account Teams Prioritised Opportunities
New Sales Strategy – Account Teams Prioritised a Short List of Opportunities For Solution Selling Service offer Example Tate & Lyle RebalanceTM Light ice-cream with low in ice-cream and yoghurt fat/calories and great taste Tate & Lyle RebalanceTM Flavoured waters with enhanced and Tate & Lyle Enrich
Slide 53: Tate & Lyle Rebalance Shows Where We Can Take Customers' Brands
New Processes – Tate & Lyle Rebalance™ Shows Where We Can Take Customers’ Brands Tastier diet Extreme product Showing how we can help reach diet/positive health new positions in health and taste proposition Positive health/vitality product Everyday vitality/ good-for-you proposition No targeted heal
Slide 54: Making Our Offer The Best-in-Market
Making Our Offer The Best-in-Market New marketing Unique and new products communications plan • SPLENDA® Sucralose • Direct marketing • Polydextrose • Trade advertising • Krystar® (crystalline fructose) • New interactive website • Beverages, dairy, snacking/ confectionery, co-processed New developme
Slide 55: Agenda – A New Approach to Customers
Agenda – A New Approach to Customers Why we are changing Changing how we go to market Changing what we take to market Product tasting Conclusion 55
Slide 56: The Analysts' Sensory Panel
The Analysts’ Sensory Panel • Three samples of ice-cream • Two are existing branded products – vanilla soft scoop and vanilla soft scoop light • The third has been made in our labs – using the rebalance model • Electronic voting • We will compare your findings to one of the most respected tasting or
Slide 57: Who Wants To Be An Ice-cream Taster?
Who Wants To Be An Ice-cream Taster? • Use scales • Interactive • Results immediately visible • Test now! 57
Slide 58: Our New Sensory Partners Have Given Us External Validation
Our New Sensory Partners Have Given Us External Validation and Credibility Vanilla 70 60 50 40 30 Cream iness Sw eetness 20 10 0 T&L T25 Full flavour Light Iciness Off-flavours Source: Independent Research 58
Slide 59: Agenda – A New Approach to Customers
Agenda – A New Approach to Customers Why we are changing Changing how we go to market Changing what we take to market Product tasting Conclusion 59
Slide 60: Conclusion – Our New Customer Solution Model
Conclusion – Our New Customer Solution Model Enhanced Customer Relationships New Focus on Communications New Processes New Products & Services New Key Account Focus Existing Relationships 60
Slide 61: Value Added Seminar Bio-products
Value Added Seminar Bio-products John Roginski Vice President, Sales And Marketing Industrial Products
Slide 62: Why Bio-products?
Why Bio-products? • Made from renewable materials • Sustainability • Greenhouse gases • Petroleum and natural gas reserves and prices • Development of value added products • Diversity 62
Slide 63: Bio-products
Bio-products • 1,3-Propanediol (Bio-3G) • Bio-gums • AquastaTM Astaxanthin 63 The DuPont Oval Logo, DuPontTM, Sorona®, and The miracles of scienceTM are trademarks or registered trademarks of E.I. du Pont de Nemours and Company
Slide 64: Developing Partnerships – Bio-3G with DuPont
Developing Partnerships – Bio-3G with DuPont Bio-3G Loudon Plant (north view) – Computer Generated Image • Combined investment approx. US$100m by March 2006 • Initial commercial manufacturing facility in Loudon, Tennessee • Construction complete 31 March 2006 • Sales forecast US$75m by 2008 64
Slide 65: What is 1,3-Propanediol (Bio-3G)?
What is 1,3-Propanediol (Bio-3G)? • Chemically 1,3-Propanediol is CH2OH-CH2-CH2OH • It can be produced from petrochemicals or by the joint venture’s patented fermentation technology • When Bio-3G is polymerised with terephthalic acid, a new unique polymer is produced – DuPont Sorona® polymer Commodi
Slide 66: The Value Chain
The Value Chain Propanediol Sorona® Corn Starch Glucose Markets Corn Bio-3G Bio-3GT Tate & Lyle profits from selling substrate to the JV The JV profits from selling Bio-3G to DuPont/others 66
Slide 67: The Bio-3G Process
The Bio-3G Process Fermentation Separations Refining Water Glucose Low MW Nutrients Impurities Membrane Ion Exchange Distillation Fibre- Fermentation Filtration Evaporation Hydrogenation Grade 3G Biomass & Organic High MW Impurities Biocatalyst Oxygen Impurities Water 67
Slide 68: DuPont and Tate & Lyle Bio-3G Video
DuPont and Tate & Lyle Bio-3G Video Not available for web viewing 68
Slide 69: Market – Drivers and Barriers
Market – Drivers and Barriers Bio-3G Drivers • Unique polymer properties • Cost and quality of monomer • Sustainability/renewability • Oil and natural gas prices Barriers • Polymerisation technology • Patent position • Microbe technology 69
Slide 70: Unique Properties that Bring Benefits to the Consumer
Unique Properties that Bring Benefits to the Consumer • Stretch and recovery • Softness • Dyeability • Stain resistance • Chlorine and UV resistance 70
Slide 71: Renewability Benefits to the Environment
Renewability Benefits to the Environment • Produced from renewable resources • Less energy to produce and lower greenhouse gas emissions than petrochemical 3G • Smaller environmental footprint and greater functionality than incumbent polymers 71
Slide 72: Crude Oil Prices
Crude Oil Prices Average price of crude oil each year - US$/ barrel 45 40 35 30 25 20 15 10 5 0 1999 2000 2001 2002 2003 2004 Calendar Years 72
Slide 73: Patent Protection
Patent Protection • Numerous microbe patents • Comprehensive process patent submitted • Extensive Bio-3G and Sorona® polymer trade secrets 73
Slide 74: Bio-3G Target Markets
Bio-3G Target Markets • Carpet • Apparel • Engineering polymers • Polyols • Heat transfer fluids • Petro polymer substitution 74
Slide 75: Market – Polyester Grows Globally
Market – Polyester Grows Globally 75
Slide 76: Bio-products
Bio-products • 1,3-Propanediol (Bio-3G) • Bio-gums • AquastaTM Astaxanthin 76 The DuPont Oval Logo, DuPontTM, Sorona®, and The miracles of scienceTM are trademarks or registered trademarks of E.I. du Pont de Nemours and Company
Slide 77: Bio-Gums - An Example of Organic Growth
Bio-Gums - An Example of Organic Growth • A family of hydrocolloid gums produced by fermentation • Xanthan gum first entry for Tate & Lyle • Complementary to food and industrial ingredients • An important addition to our solution set approach to customers • Highly value added • Opportunity for a por
Slide 78: Bio-products
Bio-products • 1,3-Propanediol (Bio-3G) • Bio-gums • AquastaTM Astaxanthin 78 The DuPont Oval Logo, DuPontTM, Sorona®, and The miracles of scienceTM are trademarks or registered trademarks of E.I. du Pont de Nemours and Company
Slide 79: Aquasta Natural Astaxanthin
AquastaTM Natural Astaxanthin • Joint venture with US bio-tech company, Igene, announced in March 2003 to produce natural astaxanthin, AquastaTM • Selby, UK plant is being commissioned • Essential nutrient for farm raised fish • Natural fermentation product • Brand is trademarked 79
Slide 80: Aquaculture Projections
Aquaculture Projections Global Farmed Salmon Production 3000 Global Farmed Salmon Production 2500 Total Salmon Demand Thousand Tonnes 2000 1500 1000 500 0 1990 1995 2000 2005 2010 80 Source: T&L estimates, Norwegian Seafood Export Council and Kontali Analyse AS.
Slide 81: Bio-products Summary
Bio-products Summary • Excellent partners – DuPont, Igene • Attractive margins • Already produced from petrochemicals/synthetics with an established market • Patent protected • Unique functionality • Produced from renewable resources • Exciting growth potential if commercialisation is successful 81
Slide 82: SPLENDA Sucralose
SPLENDA® Sucralose Austin Maguire, President Tate & Lyle Sucralose
Slide 83: Agenda
Agenda Development History The SPLENDA® Sucralose Brand Patents and Barriers to Entry Recent Product Launches Global Success 83 SPLENDA® and the SPLENDA® logo are trademarks of McNeil Nutritionals, LLC
Slide 84: Sucralose - Made From Sugar
Sucralose - Made From Sugar Sucrose Sucralose Made from sugar and tastes like sugar 600 times sweeter than sugar No calories Process and shelf stable No unpleasant after-taste Blends easily with other nutritive and non-nutritive sweeteners and food ingredients No warning labels 84
Slide 85: Development History
Development History • 1976 – Discovered by Tate & Lyle researchers • 1980 – Licence agreement with Johnson & Johnson signed • 1987 – Petitions for approvals submitted worldwide • 1991 – First regulatory approval granted (Canada) • 1992 – World’s first food product sweetened with SPLENDA® Sucralose i
Slide 86: Development History
Development History • 2000 – McNeil Nutritionals launch SPLENDA® No Calorie Sweetener tabletop product in the USA • 2001 – Tate & Lyle / McNeil Nutritionals Global Alliance on sucralose announced • 2002 – Sucralose approval granted in the UK • 2003 – SPLENDA® No Calorie Sweetener becomes the number
Slide 87: Recap of Business Realignment (April 2004)
Recap of Business Realignment (April 2004) • Enduring relationship • Realignment completed 2 April 2004 • Tate & Lyle manufactures and sells SPLENDA® Sucralose as an ingredient to food and beverage companies worldwide • McNeil Nutritionals sells SPLENDA® Brand tabletop products worldwide • Cash pric
Slide 88: Trading Update Six Months to September 2004
Trading Update Six Months to September 2004 • Sales will be $100+ million • The profit will exceed the pro forma PBT of $33 million that was achieved in the 2003 calendar year • Two plant expansions announced 88
Slide 89: Manufacturing
Manufacturing • 6 June 2004: Investment of £16m (US$30m) in plant expansion • 28 July 2004: Additional investment of £22m (US$45m) • Plant expansion will be completed by early 2006 and will double capacity • Expansion programme on track and within budget 89
Slide 90: Agenda
Agenda Development History The SPLENDA® Sucralose Brand Patents and Barriers to Entry Recent Product Launches Global Success 90
Slide 91: Building A Branded Food Ingredient
Building A Branded Food Ingredient • Working with our partners, McNeil Nutritionals, we are jointly leveraging the equity of the SPLENDA® Brand • Ingredient business experiencing tremendous success in the North American market and Japan • Significant interest in featuring the “Sweetened with SPLENDA
Slide 92: SPLENDA No Calorie Sweetener
SPLENDA® No Calorie Sweetener No.1 Brand in the low calorie sweetener category in the USA Market Share % (US $ sales) 60 SPLENDA® No Calorie Sweetener Equal® Sweet 'n' Low® 50 40 30 20 10 0 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 92 Source: Information Resources, Inc. - Total
Slide 93: Brand Synergy Builds Awareness
Brand Synergy Builds Awareness Ingredient Tabletop 93
Slide 94: SPLENDA Brand Positioning
SPLENDA® Brand Positioning New UK Television Advertisement Not available for web viewing 94
Slide 95: Agenda
Agenda Development History The SPLENDA® Sucralose Brand Patents and Barriers to Entry Market Position Global Success 95
Slide 96: Patents - Overview
Patents - Overview • There are 32 sucralose patents currently in force – 23 manufacturing patents – 5 patents related to blends / applications – 4 patents on product forms • Manufacturing patents now form the cornerstone of protection • All known economically viable routes for making sucralose paten
Slide 97: Patents - Expiry
2023 2022 2021 Pending Granted 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Patents - Expiry 2007 2006 2005 2 Expired 8 6 4 2 0 12 10 97
Slide 98: Barriers to entry
Barriers to entry SPLENDA® Sucralose brand Regulatory & Specifications Economy of Scale Technology Know-how Patents 98
Slide 99: Agenda
Agenda Development History The SPLENDA® Brand Patents and Barriers to Entry Market Position Global Success 99
Slide 100: Intense Sweetener Market Relative Value
Intense Sweetener Market Relative Value Split by Geography and by Product, Total Value US$1bn US$m, Manufacturers’ Sales 2003 10 110 220 80 130 550 550 220 10 120 Aspartame Acesulfame K Americas Europe Stevia Sucralose Asia Rest of World Saccharin Cyclamate 100 Data: Company Estimates
Slide 101: SPLENDA Sucralose Ingredient Use
SPLENDA® Sucralose Ingredient Use % Split by sales revenue Pharma, 6% Beverages, 32% Food, 62% 101 Data: Company Estimates
Slide 102: Agenda
Agenda Development History The SPLENDA® Brand Patents and Barriers to Entry Market Position Global Success 102
Slide 103: Global Success
Global Success • Over 4,000 foods and beverages are now sweetened with SPLENDA® Sucralose around the world • USA is the most important market – driven by the success of the tabletop products, plus: – Soft drinks – Nutritionals – Atkins, Slimfast, “low Carb” – Dairy: yogurts and ice cream – Popcorn!
Slide 104: Recent US Launches
Recent US Launches TATE LYLE CONSISTENTLY FIRST IN RENEWABLE INGREDIENTS co W YOUR KIDS’ FAVORITE CEREALS ARE ALSO AVAILABLE WITH 75% LESS SUGAR. 104
Slide 105: Pepsi Edge TV Commercial
Pepsi Edge TV Commercial Not available for web viewing 105
Slide 106: United Kingdom
United Kingdom TATE LYLE CONSISTENTLY FIRST IN RENEWABLE INGREDIENTS
Slide 107: Japan
Japan TATE LYLE CONSISTENTLY FIRST IN RENEWABLE INGREDIENTS 107
Slide 108: Summary
Summary • Strong consumer proposition: made from sugar so it tastes like sugar • Enduring partnership with McNeil Nutritionals • Synergies between ingredient and tabletop businesses through the SPLENDA® Brand • Excellent growth prospects • Synergies with other Tate & Lyle ingredients • Global expans
Slide 109: Value Added Seminar Conclusion
VALUE ADDED SEMINAR CONCLUSION Iain Ferguson Chief Executive
Slide 110: Conclusion
Conclusion • Strong management team • Sound strategy based on continued growth in value added products • Success in growing the business both organically and through partnerships • Investing in research and development, consumer research and sales and marketing expertise • More customer focussed 110