Barry Callebaut AG · SIX:BARN
Barry Callebaut — FY2001/02 Earnings Presentation
37 slides from Barry Callebaut's earnings presentation, Nov 12, 2002
Slide 1: Annual Results 2001/02
Annual Results 2001/02 November 12, 2002 Barry Callebaut Annual Results Presentation 2001/02
Slide 2: Contents
Contents u Review 2001/02 u Markets and operations Andreas Schmid, Chairman u Financial results Ralph Schmitz-Dräger, CFO u Outlook 2002/03 and beyond u Markets and operations Patrick De Maeseneire, CEO u Strategy u Questions & answers NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 20
Slide 3: Review 2001/02: Markets and operations
Andreas Schmid, Chairman Review 2001/02: Markets and operations NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 3
Slide 4: Financial Highlights 2001/02
Financial Highlights 2001/02 (in CHF m) Change 2001/02 2001/02 2001/02 2000/01 excl. Stollwerck* excl. Stollwerck* Sales revenue +3% 2,621.8 2,621.8 2,548.6 Operating profit EBIT +3% 173.2 93.2 168.0 in local currencies +7% 179.6 EBIT per ton +7% 227.7 CHF 122.5 CHF 213.4 CHF in local currencies +11
Slide 5: Category management across the chocolate value chain
Category management across the chocolate value chain NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 5
Slide 6: Barry Callebaut
Barry Callebaut u Committed to becoming and being recognized as the world-wide business partner of choice for the food manufacturing industry, for artisanal users and for retailers. u Globally organized areas of responsibility allow a coordinated approach to the different customer segments: Cocoa, S
Slide 7: Cocoa, Sourcing & Risk Management 01/02
Cocoa, Sourcing & Risk Management 01/02 u Sales revenue CHF 623.0 million +26% u Sales volume 133,526 tons - 11% u Revenue growth: Sharp rise in cocoa bean prices § Two poor harvests § Political conflict in Ivory Coast (growing 40% of global harvest) § Uncertainty among market participants u Volume
Slide 8: Food Manufacturers 2001/02
Food Manufacturers 2001/02 u Sales revenue CHF 1,392.1 million -2% u Sales volume 484,104 tons -1% u Stagnating markets, lower sales in Eastern Europe and the Middle East u Outsourcing trend accelerating as industrial customers are optimizing the utilization of their assets u Ongoing consolidation i
Slide 9: Gourmet & Specialties 2001/02
Gourmet & Specialties 2001/02 u Sales revenue CHF 421.0 million -1% u Sales volume 103,371 tons +3% u Not directly comparable with previous year figures § Exclusion of Consumer Products with exception of Africa Consumer business (+25% sales revenue increase) u Decline of 1% in sales revenue due to p
Slide 10: Consumer Products 2001/02
Consumer Products 2001/02 u Sales revenue CHF 185.7 million -11% u Sales volume 39,680 tons -13% u Reported separately for the first time u Acquisition of Stollwerck will add ~CHF 700 m sales in 2002/03 § Significant step in expanding Barry Callebaut’s position in Germany § Strengths: Strong positio
Slide 11: Proposals to Annual General Meeting
Proposals to Annual General Meeting u Term of office for Board members to be changed to 1 year u Re-election of all Board members u Dividend increase from CHF 6.70 to CHF 6.90 per registered share proposed NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 11
Slide 12: Review 2001/02: Financial Results
Ralph Schmitz-Dräger, Chief Financial Officer Review 2001/02: Financial Results NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 12
Slide 13: Note regarding 2001/02 results
Note regarding 2001/02 results Since the Stollwerck acquisition was only effective as of August 5, 2002, key figures as per August 31, 2002 have been prepared on a balance sheet and a result excluding Stollwerck. The impact of the acquisition of the Stollwerck Group has been eliminated and the resul
Slide 14: Sales revenue by business unit (CHF m)
Sales revenue by business unit (CHF m) Development 1999/00 – 2001/02 CHF m 3 000 2,548.6 2,621.8 2,410.4 2 500 185.7 209.3 421.0 578.2 427.2 2 000 Consumer* 623.0 G&S 440.7 495.5 1 500 Cocoa Chocolate 1 000 *part of Gourmet & Specialties 1,391.5 1,416.6 1,392.1 until 2000/01 500 0 1999/00 2000/01 20
Slide 15: Sales volume by business unit (tons)
Sales volume by business unit (tons) Development 2000/01 – 2001/02 2000/01 -3.4 % 2001/02 Total 787,302 tons Total 760,680 tons Consumer products Consumer products Chocolate products 6% - 45,388 tons 5% - 39,680 tons Chocolate products 64 % - 484,104 tons Gourmet & Specialties Gourmet & Specialties
Slide 16: EBIT (CHF m) Development 1999/00 – 2001/02
EBIT (CHF m) Development 1999/00 – 2001/02 CHF m 200 180 160 140 173.2 * 120 100 80 168.0 148.7 60 40 93.2 20 0 1999/00 2000/01 2001/02 * Excluding the provision for the restructuring costs in connection with the acquisition of Stollwerck NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation
Slide 17: EBIT (CHF m) Development 2000/01 – 2001/02
EBIT (CHF m) Development 2000/01 – 2001/02 (CHF m) 45.6 7.4 -7.1 -2.3 -3.8 Depre- 168.0 Personnel Adver- ciation Amort- 173.2 tising & ization -34.6 Volume & Promotion Other EBIT EBIT Margin costs 01/02 00/01 effect excl. Stoll- 93.2 werck -80.0 Restruc- EBIT turing 01/02 costs Stollwerck NOVEMBER 1
Slide 18: Net income (PAT) in CHF m
Net income (PAT) in CHF m Development 1999/00 – 2001/02 CHF m 120 100 80 60 101.6 * 90.0 97.1 40 20 21,1 0 1999/00 2000/01 2001/02 * Excluding the provision for the restructuring costs and the financing cost in connection with the acquisition of Stollwerck NOVEMBER 12, 2002 Barry Callebaut Annual Re
Slide 19: Net Income (PAT) Development 2000/01 - 2001/02
Net Income (PAT) Development 2000/01 - 2001/02 (CHF m) 7.6 5.2 2.0 101.6 97.1 3.0 Financial EBIT items -13.3 Minorities -80.0 Taxes PAT PAT Non 01/02 Restruc- 00/01 operating turing costs income excl. Stoll- -0.5 werck Finan- cing costs 21.1 -80.5 PAT Stollwerck 01/02 acquisition related costs NOVEM
Slide 20: ROCE Development 1999/00 – 2001/02
ROCE Development 1999/00 – 2001/02 % 16 15 14 15.3 * 13 14.0 13.5 12 1999/00 2000/01 2001/02 * Excluding the provision for the restructuring costs in connection with the acquisition of Stollwerck NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 20
Slide 21: Balance sheet Development 1999/00 – 2001/02
Balance sheet Development 1999/00 – 2001/02 CHF m 3 000 2,652 2 500 2,219 520 Stollwerck 2,049 144 2 000 Cocoa price effect 1 500 1 000 1,988 500 0 1999/00 2000/01 2001/02 NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 21
Slide 22: Balance sheet Development 2000/01 – 2001/02
Balance sheet Development 2000/01 – 2001/02 519.6 2,651.6 (CHF m) CA 01/02 116.4 2,132.0 2,049.2 73.5 1,580.9 73.8 Stoll- -86.3 Other CA werck CA -94.6 Stocks 01/02 Invest- current acqui- 00/01 Ex- change Depre- ments assets sition excl. 1,226.1 effect ciation & Stoll- Amort- werck ization 1,356.6 N
Slide 23: Refinancing of Stollwerck transaction
Refinancing of Stollwerck transaction u The Stollwerck transaction was financed through u ~ CHF 37 m/EUR 25 m in treasury shares ~ CHF 91 m/EUR 63 m with new credit facilities ~ CHF 128 m/EUR 87 m existing credit lines 2001/02 2001/02 2005 BC stand-alone BC & without equity Stollwerck transaction Ne
Slide 24: Financial Highlights 2001/02
Financial Highlights 2001/02 (in CHF m) 2001/02 2001/02 2001/02 2000/01 Change excl. excl. Stollwerck Stollwerck Sales revenue +3% 2,621.8 2,621.8 2,548.6 in local currencies +8% 2,753.6 - - EBITDA +1% 267.8 187.8 266.2 EBIT +3% 173.2 93.2 168.0 in local currencies +7% 179.6 - - Net profit (PAT) +5%
Slide 25: The Combined Group as in 2002/03
The Combined Group as in 2002/03 2002/03 Pro-forma sales revenue 2002/03 Pro-forma sales revenue by business unit by region Total ~ CHF 3.3 bn Americas Consumer 21% Food Manufacturers 41% Products 28% Asia Pacific, Africa & Middle East 6% Cocoa Products 18% Europe Gourmet & 73% Specialties 13% A foc
Slide 26: Outlook 2002/03 and beyond: Markets, Operations, Strategy
Patrick G. De Maeseneire, Chief Executive Officer Outlook 2002/03 and beyond: Markets, Operations, Strategy NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 26
Slide 27: Introduction of a newcomer to the fascinating world of chocolate
Introduction of a newcomer to the fascinating world of chocolate u Insights u Barry Callebaut is a jewel, sometimes perceived as a stone u Wealth of know-how, experience and expertise with competences in all stages of the chocolate value chain u Skilled, committed and well-trained people u Tremendou
Slide 28: Group overview by business unit
Group overview by business unit Cocoa, Sourcing u Food u Gourmet & u Consumer u & Risk Mgt Manufacturers Specialties Products uProduct segment uLiquor uChocolate uChocolate uTablets uPowder uCompounds uIngredients uBars uButter uFillings uPralines uCake uSeasonals uVolume (tons) u 133,526 u484,104 u
Slide 29: Market environment
Market environment u Basic long-term growth opportunities for Barry Callebaut: u Accelerated outsourcing of manufacturing assets by food manufacturers § High opportunity cost of capital § Volatility in cocoa prices u Emerging trends in global food retail markets § Growing consolidation and internati
Slide 30: Vision and Mission
Vision and Mission u Vision u Barry Callebaut is the heart and engine of the chocolate industry u As the chocolate expert, Barry Callebaut is the worldwide business partner of choice for the food industry, the professionals and the retailers u Barry Callebaut wants to become the Number One chocolate
Slide 31: Strategic plan
Strategic plan u Continue successful operations in Cocoa, Sourcing & Risk Mgt § Reduce exposure to volatile cocoa products market à Selective business with 3rd party customers § Focus on internal needs and selected customers § Develop new products & origins § Higher cocoa inventories in 2002/03 bala
Slide 32: Strategic plan (cont’d)
Strategic plan (cont’d) u Expand Gourmet Market § Further grow this business unit’s share of total sales § New sales and product concepts § Ready-to-sell products § Ready-to-consume products § Closer to the customer § Vending Mix: fix the supply problems we had u Successful restructuring and integra
Slide 33: Stollwerck integration after 3 months
Stollwerck integration after 3 months u Stollwerck acquisition formally closed on August 5, 2002 u Barry Callebaut has gained additional expertise in a new market and customer segment: Germany, retailers and consumers. u Integration focuses on following priorities: § Strengthening relationship with
Slide 34: Performance targets
Performance targets u Over the next three years: u Volume growth of 30% (12% organically) u Gross profit growth of 39% (14% organically) u EBIT growth of 59% (30% organically) u Net profit (PAT) growth of 48% (31% organically) u For fiscal 2002/03: u EBIT target: EBIT to exceed CHF 200 million thres
Slide 35: Accountable organization
Accountable organization CEO CIO CFO R&D + Operations HR Cocoa, Food Gourmet & Consumer Sourcing & RM Manufacturers Specialties Products Zug Manufacturing Sales Manufacturing u Risk management u Production u USA u Production u Purchasing u Logistics u Benelux u Logistics Manufacturing Sales u France
Slide 36: Conclusion
Conclusion u Ambitious 3-year plan u Priorities set for each of the 4 business units § Cocoa, sourcing and risk management § Industrial chocolate and compounds § Gourmet and specialties § Consumer u Top line profitable sales growth, except Cocoa & Sourcing -> USA = priority u Innovation u Accountabl
Slide 37: Question and answer session
Question and answer session u Thank you for your attention NOVEMBER 12, 2002 Barry Callebaut Annual Results Presentation 2001/02 37