Barry Callebaut AG · SIX:BARN
Barry Callebaut — H1 2020/21 Earnings Presentation
40 slides from Barry Callebaut's earnings presentation, May 2021
Slide 1: Roadshow presentation Half-Year Results 2020/21
Roadshow presentation Half-Year Results 2020/21 May, 2021
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: BC at a glance
BC AT A GLANCE 3 Half-Year Results 2020/21 Roadshow presentation
Slide 4: Strong values & a strong team
BC at a glance - Who are we? Strong values & a strong team • A merger between Cacao Barry, the very first French We are the heart and engine of the chocolate chocolate connoisseur since 1842 and Callebaut, a and cocoa industry Belgian chocolate couverture manufacturer expert since 1911 • Listed on t
Slide 5: Shaping the world of chocolate and cocoa
BC at a glance – This is Barry Callebaut Shaping the world of chocolate and cocoa 1 Excluding the cost of CHF -7.8 million for the closure of the Makassar, Indonesia, cocoa factory. 2 Barring any major unforeseeable events and based on the assumption of a gradual recovery from COVID-19 without major
Slide 6: 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 the chocolate and cocoa products 6 Half-Year Results 2020/21 Roadshow presentation
Slide 7: 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 Ola Fuji Oil m Guan Puratos Chong Cémo Fuji Oil i ECO Clase M n Mondele Guan z Chong Ferrero Irca JB K
Slide 8: A broad offering with cost plus model for majority of business
BC 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 69%* of volume 11%* of volume Customer: Small, medium and Global Small, medium and Global Professionals, Food Ch
Slide 9: A global footprint and local service: 61 factories worldwide
BC at a glance - where are we present? A global footprint and local service: 61 factories worldwide Cocoa & Chocolate factories Chocolate Academy Cocoa factories in countries of origin and chocolate factories close to our customers. With our 23 CHOCOLATE ACADEMY™ Centers worldwide we are at the puls
Slide 10: West Africa is the world's largest cocoa producer
BC at a glance – Cocoa bean sourcing West Africa is the world’s largest cocoa producer Total world harvest (20/21E): 4,843 TMT • About 70% of total cocoa beans are Rest of of West African origin World Brazil 12% • Barry Callebaut processed around 1 * 4 Indonesia % million tonnes or approximately * 5
Slide 11: Highlights
HIGHLIGHTS Half-Year Results 2020/21 11 Half-Year Results 2020/21 Roadshow presentation
Slide 12: CEO succession: Peter Boone to succeed Antoine de Saint-Affrique
Governance CEO succession: Peter Boone to succeed Antoine de Saint-Affrique as of September 1, 2021 Peter Boone (born 1970, Dutch national) is President of Antoine de Saint-Affrique is CEO of Barry Callebaut Region Americas since September 2017, and a member since October 2015. of the Executive Comm
Slide 13: Changes in the Executive Committee
Governance Changes in the Executive Committee Steve Woolley to become President of Region Americas as of September 1, 2021 Steve Woolley (born 1968, US national) currently serving as Vice President & General Manager Global Accounts, in which role he is responsible for the partnerships with the Group
Slide 14: Continued volume recovery and solid profitability
Highlights Half-Year Results 2020/21 Continued volume recovery and solid profitability Sales volume down -2.9%, continued recovery in second quarter (-1.3%) Sales revenue of CHF 3.5 billion, flat at 0.0% in local currencies (-7.5% in CHF) Operating profit (EBIT) of CHF 296.7 million, up +3.8%1 in lo
Slide 15: Continued recovery in Chocolate
Highlights Half-Year Results 2020/21 Continued recovery in Chocolate 1 Source: Nielsen volume growth excluding e-commerce. 2020/21 data subject to adjustment to match Barry Callebaut’s reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption, which was heavily i
Slide 16: Key growth drivers: Emerging Markets and Outsourcing lead the recovery
Highlights Half-Year Results 2020/21 Key growth drivers: Emerging Markets and Outsourcing lead the recovery 16 Half-Year Results 2020/21 Roadshow presentation
Slide 17: Key milestones in the first six months
Highlights Half-Year Results 2020/21 Key milestones in the first six months 17 Half-Year Results 2020/21 Roadshow presentation
Slide 18: Innovation
Highlights Half-Year Results 2020/21 Innovation Riding the wave Vegan/Dairy-free: Opening of our first fully segregated dairy-free production facility in Noderstedt, Germany Caramel Doré, since 2016 conquering the market, now introduced as ‘Magnum Double Gold Caramel Billionaire’ Ruby continues to c
Slide 19: Financial review
FINANCIAL REVIEW Half-Year Results 2020/21 19 Half-Year Results 2020/21 Roadshow presentation
Slide 20: Continued volume recovery and solid profitability
Financial review – Key figures Continued volume recovery and solid profitability 20 Half-Year Results 2020/21 Roadshow presentation
Slide 21: Americas and Asia Pacific leading the volume recovery
Financial review – Key performance indicators by Region Americas and Asia Pacific leading the volume recovery, solid profitability in all chocolate Regions 21 Half-Year Results 2020/21 Roadshow presentation
Slide 22: Resilient mix and cocoa business mitigate COVID-19 volume impact
Financial review – Gross profit Resilient mix and cocoa business mitigate COVID-19 volume impact 22 Half-Year Results 2020/21 Roadshow presentation
Slide 23: Cocoa Combined Ratio development
Cocoa processing profitability Cocoa Combined Ratio development 23 Half-Year Results 2020/21 Roadshow presentation
Slide 24: Operating profit (EBIT) up +3.8% against prior-year recurring
Financial review - EBIT bridge Operating profit (EBIT) up +3.8% against prior-year recurring thanks to resilient Gross profit and strict cost management 24 Half-Year Results 2020/21 Roadshow presentation
Slide 25: Net profit +6.9% compared to prior-year recurring
Financial review - EBITDA to Net profit bridge Net profit +6.9% compared to prior-year recurring thanks to solid profitability and lower financing cost and taxes 25 Half-Year Results 2020/21 Roadshow presentation
Slide 26: Raw material price development
Raw material Raw material price development 26 Half-Year Results 2020/21 Roadshow presentation
Slide 27: Continued focus on working capital management supporting strong Free cash flow
Financial review - Free cash flow Continued focus on working capital management supporting strong Free cash flow generation 27 Half-Year Results 2020/21 Roadshow presentation
Slide 28: Net debt further reduced
Financial Review – Net debt Net debt further reduced 28 Half-Year Results 2020/21 Roadshow presentation
Slide 29: Balance sheet
Financial review - Key Figures Balance sheet 29 Half-Year Results 2020/21 Roadshow presentation
Slide 30: Strategy & Outlook
STRATEGY & OUTLOOK Half-Year Results 2020/21 30 Half-Year Results 2020/21 Roadshow presentation
Slide 31: Consistent long-term strategy – sharpened business model
Strategy & Outlook Consistent long-term strategy – sharpened business model management COVID-19 31 Half-Year Results 2020/21 Roadshow presentation
Slide 32: Investing in future growth and sharpening business model
Strategy Investing in future growth and sharpening business model 32 Half-Year Results 2020/21 Roadshow presentation
Slide 33: Investing in future growth and sharpening business model
Strategy Investing in future growth and sharpening business model 33 Half-Year Results 2020/21 Roadshow presentation
Slide 34: Diversity & Inclusion
Strategy Diversity & Inclusion 34 Half-Year Results 2020/21 Roadshow presentation
Slide 35: Confident to come out of the crisis stronger and to deliver on mid-term guidance
Outlook Confident to come out of the crisis stronger and to deliver on mid-term guidance 35 Half-Year Results 2020/21 Roadshow presentation
Slide 36: Appendix
* Append IX
Slide 37: What makes Barry Callebaut unique
Appendix What makes Barry Callebaut unique Global No. 1 player in chocolate and cocoa Deep chocolate and cocoa expertise Consistent growth above the underlying market Global leader in Gourmet & Specialties Proven and long-term oriented strategy Unparalleled global footprint, present in all key marke
Slide 38: Chocolate confectionery market development – Nielsen data
Appendix Chocolate confectionery market development – Nielsen data Western Europe (33% of market) 2015-20 average: +0.5% North America (22% of market) HY 2020/21: +4.2% 2015-20 average: -0.4% HY 2020/21: +0.7% EEMEA (25% of market) 2015-20 average: +0.7% HY 2020/21: -3.8% Asia Pacific (13% of market
Slide 39: Our market and opportunities ahead
Appendix Our market and opportunities ahead Global Chocolate confectionery volume growth vs cocoa bean price Forecast volume growth per application 2019-2024 (Pure chocolate/compound volumes) 5 2’500 4 Volume growth, % 2’000 3 Absolute volume growth in tonnes / CAGR % GBP / tonne 2 1’500 Chocolate 0
Slide 40: Increase in EBIT thanks to enhanced product and customer mix
Appendix – long-term EBIT development Increase in EBIT thanks to enhanced product and customer mix and continued improvement in Cocoa business In CHF millions 327 312 312 290 295 282 274 279 271 283 251 286 282 234 272 256 242 223 231 231 219 2’036 2,140 2,096 1’795 1’834 1’914 1’717 1’379 1’536 1’2