Barry Callebaut Ag · SIX:BARN
Barry Callebaut — FY2020/21 Earnings Presentation
32 slides from Barry Callebaut's earnings presentation, Nov 10, 2021
Slide 1: Full-Year Results 2020/21 Media & Analyst Conference
Full-Year Results 2020/21 Media & Analyst Conference November 10, 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: Agenda
AGENDA Highlights Full-Year Results 2020/21 Peter Boone, CEO Financial Review Full-Year Results 2020/21 Ben De Schryver, CFO Strategy & Outlook Peter Boone, CEO Questions & Answers CEO and CFO 3 Full-Year Results 2020/21 Media and Analyst Conference
Slide 4: Highlights
HIGHLIGHTS Full-Year Results 2020/21 Peter Boone, CEO 4 Full-Year Results 2020/21 Media and Analyst Conference
Slide 5: Healthy growth, good profitability and strong cash generation
Highlights Full-Year Results 2020/21 Healthy growth, good profitability and strong cash generation Sales volume up +4.6%, all Regions and Key growth drivers contributed. Sales revenue of CHF 7.2 billion, up +8.7% in local currencies (+4.6% in CHF). Operating profit (EBIT) up +18.9%1 in local currenc
Slide 6: Chocolate volume surpassing pre-COVID level 2018/19
Highlights Full-Year Results 2020/21 Chocolate volume surpassing pre-COVID level 2018/19 Cocoa FY 2018/19 FY 2019/20 FY 2020/21 +5.1% -2.0% +4.6% Chocolate +18.4% +8.4% +10.6 % +8.0% +10.6% +8.2% +2.7% +5.3% +21.2% +10.2% +3.0% +2.5% +3.1% +10.7% +1.7% +7.7% +2.5% +9.4% +4.3% +5.9% +2.9% +2.5% -0.9%
Slide 7: All Key growth drivers contributed
Highlights Full-Year Results 2020/21 All Key growth drivers contributed % of total % volume growth Group volume vs. prior year 37% Emerging +9.7% Markets Key growth drivers 35% Outsourcing, crucial to continuously +4.5% Long-term Partnerships outperform the market 11% Gourmet & +18.3% Specialties 7
Slide 8: Key milestones
Highlights Full-Year Results 2020/21 Key milestones October 2020 November 2020 All global Gourmet brands March 2021 Opening of new April 2021 May 2021 use 100% sustainable January 2021 chocolate factory in cocoa, Carma 100% Launch of #oneBC, Baramati, India JAG 10% placement, sustainable ingredients
Slide 9: Innovation
Highlights Full-Year Results 2020/21 Innovation Riding the wave of... ...plant-based by extending range of indulgence for special dietary requirements like ‘Halal’ and ‘Kosher Badatz’. ...better for you and the planet with new drinking chocolate powder with less sugar and low carb / no added sugar s
Slide 10: Global Gourmet brands leading on innovative trends
Global Gourmet brands leading on innovative trends, driving creativity of craftsmanship and providing sustainable solutions of the future. 10 Full-Year Results 2020/21 Media and Analyst Conference
Slide 11: Financial Review
FINANCIAL REVIEW Full-Year Results 2020/21 Ben De Schryver, CFO 11 Full-Year Results 2020/21 Media and Analyst Conference
Slide 12: Good profitability and strong Cash flow generation
Financial review – Key figures Good profitability and strong Cash flow generation Change in % Group performance (in CHF million) FY 2020/21 in local currencies in CHF Sales volume (in tonnes) 2,191,572 n/a 4.6% Sales revenue 7,207.6 8.7% 4.6% Gross profit 1,147.2 10.8% 7.9% EBIT reported 566.7 20.8%
Slide 13: All Regions contribute to growth and good profitability
Financial review – Key performance indicators by Region All Regions contribute to growth and good profitability, Global Cocoa business showing resilience in volatile environment Group Sales volume: EMEA 2,191,572 Americas 997,324 tonnes 610,133 46% 28% Global Cocoa APAC 445,719 138,396 20% 6% EMEA A
Slide 14: Strong recovery from COVID-19 on volume and mix
Financial review - Gross profit Strong recovery from COVID-19 on volume and mix In CHF million +10.8% +8 1,179 +60 1,147 -32 +47 1,064 Gross Profit Volume Mix Cocoa Gross Profit FX Gross Profit FY 2019/20 FY 2020/21, FY 2020/21 in LC 14 Full-Year Results 2020/21 Media and Analyst Conference
Slide 15: Cocoa Combined Ratio development
Financial review Cocoa Combined Ratio development European Combined Ratio - 6 month forward ratio Combined Ratio gives broad indication… 4.00 Shows general high level industry direction, assuming 3.50 many variables are fixed. Combined 3.00 Ratio 3.4x However… Many variables are not fixed e.g. 2.50
Slide 16: Operating profit (EBIT) up +18.9%
Financial review - EBIT bridge Operating profit (EBIT) up +18.9% thanks to strong recovery and good cost management In CHF million +18.9% +115 584 567 -22 -17 8 491 483 EBIT FY Factory EBIT FY Gross Profit SG&A, EBIT FY FX EBIT FY 2019/20 closure costs 2019/20, Scope 2020/21, 2020/21 recurring in LC
Slide 17: Net profit up +24% compared to prior-year recurring
Financial review - EBITDA to Net profit bridge Net profit up +24% compared to prior-year recurring thanks to strong profitability and lower financing cost and taxes In CHF million ETR 795 FY 2020/21: 17.3% FY 2019/20: 18.2%1 567 +78 -229 +24.2% (PY -221) 385 12 397 -101 (PY -102) 319 -81 (PY -69) EB
Slide 18: Raw material price development
Financial review Raw material price development Change FY 2020/21 150% (average): Milk powder +11.6% 100% Cocoa beans -7.0% Sugar World +22.3% Sugar EU +3.6% 50% 0% Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 18 Full-Year Results 2020/21 Media a
Slide 19: Strong Free cash flow
Financial review - Free cash flow Strong Free cash flow as a result of good EBITDA and efficient working capital management In CHF million +11.7% 795 712 -81 (PY +108) -163 40 355 315 (PY -149) (PY -87) (PY +317) (PY +404) -275 39 (PY -281) EBITDA EBITDA Change in Interest and CAPEX Others FCF RMI B
Slide 20: Continued Net debt reduction on the back of strong FCF
Financial Review – Net debt Continued Net debt reduction on the back of strong FCF generation In CHF million -85 139 -355 1.366 40 12 1.281 -734 79 -47 547 594 Net debt Dividends Free Change Lease FX/Other Net debt Adj. for Adjusted Adjusted Aug’20 & cash flow in Lease payments Aug’21 beans Net debt
Slide 21: Strong Balance sheet
Financial review - Key figures Strong Balance sheet in CHF million Aug 21 Aug 20 Net working capital 1,242 1,192 Non-current assets 2,978 2,800 Total assets 7,244 7,141 Net debt 1,281 1,366 Adj. Net debt1 547 594 Shareholders’ equity 2,683 2,354 ROIC 12.2% 10.3% ROE 14.3% 13.2% Net debt / Equity rat
Slide 22: Proposed payout of CHF 28.00, payout ratio of 40%
Dividend Proposed payout of CHF 28.00, payout ratio of 40% 39% 37% 39% 39% 40% Proposed dividend Payout ratio 385 • CHF 28.00 per share 357 369 311 • Stable payout ratio of 40% of Net profit 281 Timetable for dividend Net profit reported in CHF millions • Shareholder approval: December 8, 2021 • Ex-
Slide 23: Strategy & Outlook
STRATEGY & OUTLOOK Full-Year Results 2020/21 Peter Boone, CEO 23 Full-Year Results 2020/21 Media and Analyst Conference
Slide 24: 'Smart growth' will continue to be at the heart of our long-term strategy
Strategy & Outlook ‘Smart growth’ will continue to be at the heart of our long- term strategy execution 24 Full-Year Results 2020/21 Media and Analyst Conference
Slide 25: Accelerating up the value ladder
Strategy Accelerating up the value ladder 25 Full-Year Results 2020/21 Media and Analyst Conference
Slide 26: Forever Chocolate - making sustainable chocolate the norm
Strategy - ESG Forever Chocolate - making sustainable chocolate the norm 214,584 cocoa farmers In 2020/21 we estimate 214,584 2525,486 486 (+413%) of the reported cases we found in (+50%) in our supply chain are out of poverty. previous years, are under remediation. 92,500 (+125%) farmers have adopt
Slide 27: Diversity & Inclusion
Strategy - ESG Diversity & Inclusion It’s about commitment • Internally: Regions and Corp. Functions translate Group targets into specific metricated targets. • Externally: UN Women’s Empowerment Principles signed. It’s about policies • Introduction of global flexible working framework FleX!, making
Slide 28: Experienced management team and solid Governance
Strategy - ESG Experienced management team and solid Governance Board of Directors Chairman: Patrick De Maeseneire* Experienced Board of Directors. AFRQCC NCC All Board members proposed for re-election. Chairman: Markus R. Neuhaus Chairman: Tim Minges Antoine de Saint-Affrique proposed as new Intern
Slide 29: Experienced management team and solid Governance
Strategy - ESG Experienced management team and solid Governance Experienced Board of Directors. All Board members proposed for re-election. What a Team! Antoine de Saint-Affrique proposed as new member of the Board. Open and transparent dialogue with shareholders. Changes in Executive Committee to p
Slide 30: On track to accelerate up the value ladder and deliver on mid-term guidance
Outlook On track to accelerate up the value ladder and deliver on mid-term guidance “‘Smart growth’ will continue to be at the heart of our long-term strategy execution with a focus on returns and cash generation. By leveraging our global footprint, industry-best innovation, cost leadership, and imp
Slide 31: Thank you to all colleagues for 25 years of growth
Thank you to all colleagues for 25 years of growth, and many more to come... 30 Full-Year Results 2020/21 Media and Analyst Conference
Slide 32: Question & Answer
Question & Answer Peter Boone Ben De Schryver CEO CFO 31 Full-Year Results 2020/21 Media and Analyst Conference