Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Non-Deal Roadshow (April 2023)
30 slides from Barry Callebaut's roadshow presentation, Apr 5, 2023
Slide 1: Roadshow presentation
Roadshow presentation April 2023
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: Barry Callebaut at a glance
Barry Callebaut at a GLANCE 3 Half-Year Results 2022/23 Roadshow presentation
Slide 4: Creating chocolate happiness, one joyous moment at a time
Barry Callebaut at a glance - Who are we? Creating chocolate happiness, one joyous moment at a time We are the heart and engine of the chocolate and cocoa industry FY 2021/22: Sales revenue 8.1 billion In tonnes Sales volume 2.3 million Volume growth +5.3% 120 years of Big enough to Chocolate matter
Slide 5: 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 chocolate and cocoa products 5 Half-Year Results 2022/23 Roadshow presentation
Slide 6: A global footprint and local service: over 60 factories worldwide
Barry Callebaut at a glance - What do we do? A global footprint and local service: over 60 factories worldwide and strong roots in origin countries Total world harvest (2021/22): 4,823 TMT Rest of the World 13% Indonesia 4% Brazil 4% Côte d'Ivoire Nigeria 6% 45% Cameroon 6% Ecuador 7% Ghana 15% Sour
Slide 7: A broad offering with cost-plus model for majority of business
Barry Callebaut at a glance – offering and business model A broad offering with cost-plus model for majority of business Cocoa Products Food Manufacturers Gourmet & Specialties % share: 20%* of volume 67%* of volume 13%* of volume Customer: Small, medium and global Small, medium and global Professio
Slide 8: 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 Barry Callebaut Barry Callebaut Cargill Cargill Olam Fuji Oil Guan Chong Puratos Cémoi Fuji Oil (Baronie Group) ECOM Clasen Mondelez Guan Chong Ferrer
Slide 9: Highlights
HIGHLIGHTS Half-Year Results 2022/23 9 Half-Year Results 2022/23 Roadshow presentation
Slide 10: Strong profitability and progressive volume recovery
Highlights Half-Year Results 2022/23 Strong profitability and progressive volume recovery • Progressive volume recovery in second quarter (-0.5%), limiting volume decline to -2.9% in Half Year 2022/23 • Sales revenue of CHF 4.2 billion, up +7.9% in local currencies (+3.7% in CHF) • Strong operating
Slide 11: Improving volume in Chocolate in an overall declining market
Highlights Half-Year Results 2022/23 Improving volume in Chocolate in an overall declining market Cocoa Chocolate FY 2021/22 HY 2022/23 +5.3% -2.9% +8.9% +6.0% +8.5% +1.9% +6.5% +2.5% +9.6% +10.2% +7.5% -0.3% -2.6% +2.6% -0.1% -1.2% Excluding -3.0% -5.8% -0.5% -3.6% Wieze impact -2.4% -1.4% -5.1% -2
Slide 12: Key growth drivers support volume improvement
Highlights Half-Year Results 2022/23 Key growth drivers support volume improvement % of total % volume growth Group volume vs. prior year 39% -1.0% Emerging (Q2 +2.1%) Markets Key growth drivers 35% Outsourcing, crucial to +1.4% Long-term continuously (Q2 +3.0%) Partnerships outperform the market 13
Slide 13: Outlook & Strategy
OUTLOOK & STRATEGY Half-Year Results 2022/23 13 Half-Year Results 2022/23 Roadshow presentation
Slide 14: Continued strong operating profitability, updated volume forecast for Full Year 2022/23
Outlook Continued strong operating profitability, updated volume forecast for Full Year 2022/23 “We are confident to deliver continued strong operating profit in the second half of the year. Due to the delayed volume growth, we now forecast the volume to be flat to modest for the Full Year 2022/23.
Slide 15: Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation
Long-term Strategy Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation Accelerated value New mid-term guidance creation Sustainable growth based on Key Growth Drivers • Continued growth in Emerging Markets 3-year period • Selective growth in Outsourcing 2023/24
Slide 16: Financial Review
FINANCIAL REVIEW Half-Year Results 2022/23 16 Half-Year Results 2022/23 Roadshow presentation
Slide 17: Volume picked up in Region EMEA and Global Cocoa
Financial review – Key performance indicators by Region Volume picked up in Region EMEA and Global Cocoa. Strong profitability in Regions EMEA, Americas and Global Cocoa Group Sales volume: 1,130,742 tonnes Volume EBIT growth growth Market1 in LC, recurring2 EMEA -3.7% -3.2% +10.3% In tonnes % of to
Slide 18: Gross profit increase supported by strong mix and positive Cocoa contribution
Financial review - Gross profit Gross profit increase supported by strong mix and positive Cocoa contribution In CHF million +11.4% 17 675 70 664 -11 606 -18 Gross profit Volume Mix Cocoa Gross profit FX Gross profit HY 2021/22 HY 2022/23, HY 2022/23 in LC 18 Half-Year Results 2022/23 Roadshow prese
Slide 19: Cocoa combined ratio and raw material price development
Financial review Cocoa combined ratio and raw material price development European Combined Ratio - 6-month forward ratio Raw material price changes on average for the period HY 2022/23 4.50 180% 4.00 160% +83.4% 3.50 Combined 140% ratio 3.5x +11.3% 3.00 120% +5.3% 2.50 100% Butter ratio -6.1% 2.00 8
Slide 20: Strong Operating profit (EBIT) recurring, up +11% in local currencies
Financial review - EBIT bridge Strong Operating profit (EBIT) recurring, up +11% in local currencies In CHF million +11.0% 353 348 69 -34 -5 331 318 -13 EBIT Tax Credit EBIT HY Gross Profit SG&A, EBIT HY FX EBIT HY HY 2021/22 Brazil 2021/22 Others 2022/23, 2022/23 reported recurring reported, report
Slide 21: Net profit recurring up +10.4% in local currencies
Financial review - EBITDA to Net profit bridge Net profit recurring up +10.4% in local currencies, thanks to strong Operating profit (EBIT) In CHF million 467 ETR HY 2022/23: 18.7% HY 2021/22: 17.3% 348 (recurring 17.7%) -119 +10.2% (PY -116) -60 234 0 234 212 (PY -59) -54 (PY -47) EBITDA Dep. & EBI
Slide 22: Solid cash generation despite higher working capital
Financial review - Free cash flow Solid cash generation despite higher working capital In CHF million +7.7% -249 467 (PY -95) 434 -88 (PY -68) -96 (PY -104) 72 -259 39 (PY +167) (PY -300) -187 (PY -133) EBITDA EBITDA Change in Interest CAPEX Others FCF RMI Beans FCF recurring recurring Working & Inc
Slide 23: Adjusted Net debt further reduced
Financial Review – Net debt Adjusted Net debt further reduced In CHF million 188 41 1,581 154 1,199 -193 561 368 -1,213 Net debt Dividends Free FX/Others Net debt Adjustments Adjusted Adjusted Aug’22 & Treasury cash flow Feb’23 for beans Net debt Net debt shares (RMI) Feb’23 Feb’22 23 Half-Year Resu
Slide 24: Strong Balance sheet
Financial review - Key figures Strong Balance sheet (in CHF million) Feb’23 Aug’22 Feb’22 Net working capital 1,699 1,293 1,599 Non-current assets 2,972 3,002 2,934 Total assets 8,185 7,761 7,428 Net debt 1,581 1,199 1,594 Adj. Net debt1 368 350 561 Shareholders’ equity 2,896 2,902 2,696 ROIC report
Slide 25: Appendix
APPENDIX 25 Half-Year Results 2022/23 Roadshow presentation
Slide 26: ESG Sustainability Agenda 2023
ESG Sustainability Agenda 2023 Save-the-dates: • May 10 Forever Chocolate – Impact beyond 2025 live webinar • May 11 Forever Chocolate – Impact beyond 2025 live Investor Q&A • May 16 Barclays ESG fire side chat with CEO • May 22-25 ESG Investors cocoa origin trip to Côte d’Ivoire • June 1 3rd virtua
Slide 27: Sustainability update Forever Chocolate Progress Report
Sustainability Sustainability update Forever Chocolate Progress Report Forever Chocolate • Through Forever Chocolate we continue to create tangible impact on the ground • One out of two products we sell contain 100% sustainable cocoa or chocolate • Annual Forever Chocolate Progress report to be publ
Slide 28: Increase in EBIT per tonne thanks to enhanced product and customer mix
Key Financials Increase in EBIT per tonne thanks to enhanced product and customer mix 327 325 312 312 339 282 290 283 292 274 279 271 307 251 259 286 281 231 271 272 240 256 242 231 231 223 219 2,140 2,192 2,307 1,914 2,036 2,096 1,717 1,795 1,834 1’379 1,536 1,210 1,269 2009/10 EBIT2010/11 per tonn
Slide 29: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) 2017-22 average: +0.6% North America (22% of market) 1Q 2022/23: -3.7% 2017-22 average: +0.1% 2Q 2022/23: -1.9% 1Q 2022/23: -2.8% 2Q 2022/23: -2.8% EEMEA (24% of market) 2017-22 average: +1.3% Asia Paci
Slide 30: Chocolate consumption
Appendix Our market and opportunities ahead Global chocolate confectionery volume growth vs cocoa bean price Forecast volume growth per application 2021-2026 (Pure chocolate/compound volumes) 5 2’500 4 Volume growth, % 2’000 Absolute volume growth in tonnes / CAGR % 3 GBP / tonne 2 1’500 Chocolate C