Tate & Lyle Plc · LSE:TATE
Tate & Lyle — H1 FY2017 Earnings Presentation
19 slides from Tate & Lyle's earnings presentation, Nov 3, 2016
Slide 1: Results for the Six Months to 30 September 2016
RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2016 Copyright © Tate & Lyle PLC 2016
Slide 2: Cautionary Statement
Cautionary Statement This presentation of Half Year Results for the six months to 30 September 2016 contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Tate & Lyle PLC. These statements and forecasts involve risk and uncertainty
Slide 3: Agenda
Agenda Overview Javed Ahmed Financial Review and Outlook Nick Hampton Business Update Javed Ahmed 3
Slide 4: Overview of Performance
Overview of Performance Commercial Operational Financial • Speciality Food Ingredients • Consistent performance across • Good cash management performed well global plant network • New Products continued • Further embedding global supply • Strong balance sheet positive trajectory and demand planning
Slide 5: Financial Review and Outlook
FINANCIAL REVIEW AND OUTLOOK Nick Hampton, Chief Financial Officer
Slide 6: Financial Highlights – Six months to September 2016
Financial Highlights – Six months to 30 September 2016 £1.3bn £140m 24.3p £138m £418m Sales Adjusted Adjusted Adjusted Net debt PBT diluted free cash EPS flow on continuing operations +1% +22% +19% +£46m £16m lower Adjusted results and a number of other terms and performance measures used in this pr
Slide 7: Adjusted Profit Before Tax Analysis
Adjusted Profit Before Tax Analysis Six months to 30 September 2016 +£15m +£6m (£8m) £140m +£15m £125m +£9m £103m H1 FY16 Speciality Bulk Joint Interest / H1 FY17 FX H1 FY17 Adj PBT Food Ingredients Ventures Central costs Adj PBT Adj PBT Ingredients Constant Currency See descriptions of adjusted res
Slide 8: Speciality Food Ingredients
Speciality Food Ingredients Six months to 30 September 2016 2016 Change Volume growth Sales £487m +£41m Adjusted operating profit £94m +12%* EMEA +17% Adjusted operating margin 19.3% +230bps APAC/ • Good profit growth in core business LATAM +7% • Challenging half for Food Systems Sucralose Food Syst
Slide 9: Bulk Ingredients
Bulk Ingredients Six months to 30 September 2016 2016 Change Adjusted operating margin Volume +2% Adjusted operating profit – Core £67m +37%* 7.7% Adjusted operating profit – Commodities (£3m) (£1m) 5.8% 5.8% Adjusted operating margin 7.7% +190bps • Strong US beverage season supports sweetener deman
Slide 10: Cash Flow
Cash Flow Adjusted free cash flow (H1 inflows) • Earnings growth For the 6 months to 30 September £138m • Working capital management • Foreign currency translation benefit £92m • Improving cash dividend cover £60m • Net debt reduced to £418m • Full year capital expenditure around £150m 2014 2015 201
Slide 11: Taxation
Taxation First half adjusted effective tax rate (ETR) 18.3% • Full year adjusted ETR guidance unchanged at around 18% • UK legislation changes − Change in internal financing structure − £26m exceptional deferred tax credit recognised − Reported effective tax rate 0.9% credit • Forecast − Financial y
Slide 12: Summary and outlook
Summary and outlook • Strong H1 performance across both divisions Full Year Outlook − Strong profit growth and margin progression − Solid US bulk sweetener demand We expect adjusted profit before tax in constant currency for the full year to be − Benefit from one-off sell-down of excess sucralose in
Slide 13: Business Update
BUSINESS UPDATE Javed Ahmed, Chief Executive 13
Slide 14: Bulk Ingredients
Bulk Ingredients Drivers of Relatively stable industry dynamics performance Building a stronger business • US corn wet milling industry • Modified operating model dynamics well-balanced providing greater focus • Relatively steady corn prices • Deeper customer engagement after another good crop and e
Slide 15: Speciality Food Ingredients
Speciality Food Ingredients • Encouraging performance Infrastructure • Expanding Applications laboratory in Singapore • Continuing to invest for long term growth Growth capacity • Sucralose progressing well • Additional oat ingredients capacity on line • Fibres capacity being expanded in North Ameri
Slide 16: Speciality Food Ingredients: North America
Speciality Food Ingredients: North America Focused • Overall North American Food & Beverage market market approach remains sluggish (0.3% growth)1 • Volume in H1 3% lower Sub-category Customer focus segmentation • Softer demand from some larger customers • Continuing to win new business in higher gr
Slide 17: New Products continued good trajectory
New Products continued good trajectory Sales (US $m) FY12 FY13 FY14 FY15 FY16 FY17 2020 H1 200 • Growth across all three platforms • Continuing to expand product families – CLARIA® Delight 86 – MULTIVANTAGE® Syrup 48% CAGR 69 • First consumer product in market 48 51 containing DOLCIA PRIMA® Allulose
Slide 18: Summary
Summary • Strong first half performance • Both business divisions performing well • New Products continue good growth trajectory • Continuing focus on operational discipline • Strong cash management • Key executional priorities unchanged • Continued progress against medium term ambition 18
Slide 19: Questions
QUESTIONS 19