Barry Callebaut Ag · SIX:BARN
Barry Callebaut — FY2021/22 Earnings Presentation
40 slides from Barry Callebaut's earnings presentation, Nov 22, 2022
Slide 1: Roadshow Presentation Full-Year Results 2021/22
Roadshow Presentation Full-Year Results 2021/22 November, 2022
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 FY 2021/22 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 Sales revenue 8.1 billion In tonnes Sales volume 2.3 million Volume growth +5.3% 120 years of Big enough to EBIT (recurring)1 Chocolate
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 cocoa and chocolate products 5 FY 2021/22 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 (2021/22E): 4,890 TMT Rest of the World 13% Indonesia 4% Brazil 4% Côte d'Ivoire Nigeria 6% 45% Cameroon 6% Ecuador 8% Ghana 14% Sou
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 9 FY 2021/22 Roadshow presentation
Slide 10: Strong results, on track to achieve mid-term guidance
Highlights Full-Year Results 2021/22 Strong results, on track to achieve mid-term guidance • Sales volume up +5.3%, with solid chocolate performance (+5.9%) • Sales revenue of CHF 8.1 billion, up +14.6% in local currencies (+12.3% in CHF) • Operating profit (EBIT) recurring1 of CHF 624.7 million, up
Slide 11: Wieze back on stream!
Highlights Full-Year Results 2021/22 Wieze back on stream! • Since late October 2022 the Wieze factory is back on stream at normal capacity after the Salmonella incident • The Group expects to still experience an impact in the first quarter 2022/23, linked to the catch-up on delayed volume A big ‘TH
Slide 12: Solid chocolate performance
Highlights Full-Year Results 2021/22 Solid chocolate performance Cocoa FY 2020/21 FY 2021/22 Chocolate +4.6% +5.3% +18.4% +8.4% +8.2% +8.0% +6.0% +8.5% +2.7% +1.9% +6.5% +21.2% +2.5% +9.4% +9.6% +10.2% +7.5% -5.5% -0.3% -13.1% -0.2% -1.8% -1.3% -3.0% -4.3% -2.4% Q1 20/21 Q2 20/21 Q3 20/21 Q4 20/21 Q
Slide 13: All Key growth drivers contributing
Highlights Full-Year Results 2021/22 All Key growth drivers contributing % of total % volume growth Group volume vs. prior year 38% Emerging +7.9% Markets Key growth drivers 34% Outsourcing, crucial to continuously +4.8% Long-term Partnerships outperform the market 13% Gourmet & +22.5% Specialties 1
Slide 14: Key milestones
Highlights Full-Year Results 2021/22 Key milestones October 2021 Opening of ‘The Chocolate Box’, the December 2021 March 2022 world’s largest and most February 2022 September 2021 sustainable chocolate Launch of warehouse Callebaut NXT 100% plant-based Inauguration of CDP scores chocolate chocolate
Slide 15: Innovation, another year of highlights
Highlights Full-Year Results 2021/22 Innovation, another year of highlights Driving on-trend innovation Providing solutions for consumer desires on ‘mindful indulgence’, ‘better-for-you’ and ‘the planet’ with • Callebaut NXT for vegan, plant-based, lactose-free & Dairy- free delights • Cacao Barry E
Slide 16: Launching the second generation of chocolate
Highlights Full-Year Results 2021/22 Launching the second generation of chocolate • Breakthrough innovation by redesigning how chocolate is made • Enables brands and artisans to be fit for what consumers desire: food and drinks paying homage to nature’s flavors while supporting them to live more hea
Slide 17: Financial Review
FINANCIAL REVIEW 17 FY 2021/22 Roadshow presentation
Slide 18: Recurring results reconciliation
Financial review – Key figures Recurring results reconciliation Brazil indirect tax recovery • Recovery of indirect tax credits for prior fiscal periods applicable to all taxpayers • Positive one-off effect of CHF 13.6 million, mainly in Global Cocoa and Region Americas Salmonella incident Wieze fac
Slide 19: Strong results, notable impact of Wieze in fourth quarter
Financial review – Key figures Strong results, notable impact of Wieze in fourth quarter Change in % Group performance (in CHF million) FY 2021/22 in local currencies in CHF Sales volume (in tonnes) 2,306,681 n/a 5.3% Sales revenue 8,091.9 14.6% 12.3% Gross profit 1217.2 8.4% 6.1% EBIT reported 553.
Slide 20: All Regions contributed to growth, Global Cocoa rebound in profitability
Financial review – Key performance indicators by Region All Regions contributed to growth, Global Cocoa rebound in profitability as expected Group Sales volume: 2,306,681 Volume growth EBIT growth in LC tonnes BC Market1 reported recurring2 EMEA +4.3% -1.3% -15.6% +10.5% Americas +6.4% +0.7% +16.0%
Slide 21: Strong volume and mix, Cocoa back to positive contribution
Financial review - Gross profit Strong volume and mix, Cocoa back to positive contribution In CHF million +8.4% 10 1,243 -26 1,217 26 60 1,147 Gross Profit Volume Mix Cocoa Gross Profit FX Gross Profit FY2020/21 FY2021/22, FY2021/22 in LC 21 FY 2021/22 Roadshow presentation
Slide 22: Cocoa Combined Ratio development
Financial review Cocoa Combined Ratio development European Combined Ratio - 6-month forward ratio Combined Ratio gives 4.50 broad indication… Shows general high level 4.00 industry direction, assuming Combined Ratio 3.6x many variables are fixed. 3.50 3.00 However… Many variables are not fixed e.g.
Slide 23: Strong growth in EBIT before non-recurring items
Financial review - EBIT bridge Strong growth in EBIT before non-recurring items In CHF million +13.5% -20 643 -18 625 14 -8 -2.3% 96 -77 567 553 Non-recurring items1 EBIT Gross SG&A, EBIT FX EBIT FY Indirect UK factory Wieze EBIT FY2020/21 Profit Others FY2021/22, 2021/22 Brazil tax closure impact F
Slide 24: Net profit recurring up +14.1% thanks to strong volume and sound profitability
Financial review - EBITDA to Net profit bridge Net profit recurring up +14.1% thanks to strong volume and sound profitability In CHF million 789 ETR FY 2021/22: 16.4% FY 2020/21: 17.3% 553 +14.1% -236 68 439 (PY -229) 385 -122 361 10 (PY -102) -71 (PY -81) EBITDA Depr. & EBIT Financial Income Net Pr
Slide 25: Raw material price development
Financial review Raw material price development Change FY 2021/22 1.6 (average): 1.4 Sugar EU +56.4% 1.2 Milk powder +51.5% Sugar World +18.7% 1 Cocoa beans +4.2% 0.8 0.6 0.4 0.2 0 Aug-2013 Aug-2014 Aug-2015 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2021 Aug-2022 25 FY 2021/22 Roadshow presen
Slide 26: Free Cash Flow continued solid trajectory
Financial review - Free cash flow Free Cash Flow continued solid trajectory In CHF million -0.7% +63 (PY -81) 795 789 -184 (PY -163) 359 (PY +315) 266 -276 -34 (PY +355) (PY -275) -92 (PY +40) EBITDA EBITDA Change in Interest & CAPEX Others / FCF RMI Beans FCF FY2020/21 FY2021/22 Working Income non-
Slide 27: Net debt further decreased
Financial Review – Net debt Net debt further decreased In CHF million -82 170 1,281 14 1,199 -266 -198 547 350 -849 265 266 Net Debt Dividends Free Cash FX/Others Net Debt Adjustments Adjusted Adjusted Aug’21 & Treasury Flow Aug’22 for beans Net Debt Net Debt shares (RMI) Aug’22 Aug’21 IFRS16/leases
Slide 28: Strong Balance sheet
Financial review - Key figures Strong Balance sheet (in CHF million) Aug’22 Aug’21 Net working capital 1,293 1,242 Non-current assets 3,002 2,978 Total assets 7,761 7,244 Net debt 1,199 1,281 Adj. Net debt1 350 547 Shareholders’ equity 2,902 2,683 ROIC 11.5% 12.2% 2 ROIC recurring 13.2% 12.2% ROE 12
Slide 29: Proposed stable payout of CHF 28.00
Dividend Proposed stable payout of CHF 28.00 43%* 39% 40% 37% 39% Proposed stable dividned • CHF 28.00 per share 385 • Payout ratio of 43%* of Net profit reported, 357 369 312 361 temporary above the payout range of 35-40%, due to the one-off impacts on net profit. 2017/18 2018/19 2019/20 2020/21 20
Slide 30: Strategy & Outlook
STRATEGY & OUTLOOK 30 FY 2021/22 Roadshow presentation
Slide 31: Consistent long-term strategy
Strategy & Outlook Consistent long-term strategy 31 FY 2021/22 Roadshow presentation
Slide 32: Continued drive for long-term success
Strategy Continued drive for long-term success Expansion Innovation Cost Leadership Continued footprint and Riding on trends Leverage scale distribution expansion • Groundbreaking of new specialty • Business Excellence Center in Asia • Partnership with Attelli establishes chocolate factory in Canada
Slide 33: 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 34: Change in the Executive Committee
Governance Change in the Exececutive Committee Olivier Delaunay leaving Barry Callebaut • Olivier Delaunay decided to leave Barry Callebaut for personal reasons. • He has successfully accomplished what he set out to as COO, to run a network of factories that offers customers more cost effective solu
Slide 35: Solid Governance – new member to the Board of Directors
Governance Solid Governance – new member to the Board of Directors All board members stand for re-election • All nine current board member stand for re- election. Proposed as new member of the Board of Directors: Thomas Intrator • Deep insight into energy, logistics, trading and risk management. • T
Slide 36: On track to achieve mid-term guidance
Outlook On track to achieve mid-term guidance Supported by the consistency of the growth strategy and the strength of the innovation pipeline, Barry Callebaut is on track to achieve the mid-term guidance in Fiscal Year 2022/23. The Wieze factory runs again at normal capacity, though the Group expect
Slide 37: Appendix
APPENDIX 37 FY 2021/22 Roadshow presentation
Slide 38: 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 Absolute volume growth in tonnes / CAGR % 2’000 Volume growth, % 3 GBP / tonne 1’500 Chocolate Con
Slide 39: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) North America (22% of market) 2017-22 average: 0.6% 2017-22 average: 0.1% FY 2021/22: -2.5% FY 2021/22: 0.4% EEMEA (24% of market) 2017-22 average: 1.3% FY 2021/22: 1.5% Asia Pacific (14% of market) 201
Slide 40: Diverse and robust liquidity profile
Appendix Diverse and robust liquidity profile with no outstanding amounts under the back-stop Revolving Credit Facility as per year end As of 31 Aug 2022 Leasing (short term) Committed 1,199 net debt 40 FY 2021/22 Roadshow presentation