Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Non-Deal Roadshow (January 2021)
36 slides from Barry Callebaut's roadshow presentation, Jan 21, 2021
Slide 1: Roadshow presentation
Roadshow presentation 3-Month Key Sales Figures 2020/21 January, 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 Q1 2020/21 Roadshow presentation
Slide 4: Strong values & a strong team
BC at a glance - Who are we? Strong values & a strong team We are the heart and • A merger between Cacao Barry, the very first French 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: From the cocoa bean to the chocolate and cocoa products
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 Q1 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 Olam Fuji Oil Guan Chong Puratos Fuji Oil Cémoi ECOM Clasen Mondelez Guan Chong Ferrero Irca JB Foods
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 (19/20E): 4,857 TMT • About 70% of total cocoa beans are of West African origin Rest of World Brazil* 12% • Barry Callebaut processed around 1 4% Indonesia* million tonnes or approximately 20%
Slide 11: Highlights
HIGHLIGHTS 3-Month Key Sales Figures 2020/21 11 Q1 2020/21 Roadshow presentation
Slide 12: Resilient start to the year
Highlights 3-Month Key Sales Figures 2020/21 Resilient start to the year Sales volume down -4.3%, improving chocolate performance (-1.8%) in line with global chocolate confectionery market1 Sales revenue of CHF 1,777.5 million, down -3.5% in local currencies (-11.2% in CHF) Confident on mid-term gui
Slide 13: Key milestones in the quarter
Highlights 3-Month Key Sales Figures 2020/21 Key milestones in the quarter October 2020 Groundbreaking for new cocoa sourcing facility in Duran, Ecuador Ramp-up of long-term outsourcing agreement with leading Australian November 2020 September 2020 snacking company for supply of 100% Cocoa Horizons
Slide 14: Progressive recovery in chocolate
Highlights 3-Month Key Sales Figures 2020/21 Progressive recovery in chocolate FY 2018/19 FY 2019/20 Cocoa +5.1% -2.0% Chocolate +10.6% +10.6% +8.2% +5.3% +10.2% +3.0% +3.1% +10.7% +2.5% +1.7% +7.7% +2.5% +4.3% +5.9% +2.9% +2.5% -14.3% -4.3% -4.3% -0.9% -5.5% -2.4% -14.6% -13.1% -3.9% -1.8% -14.1% Q
Slide 15: Resilient performance in chocolate
Highlights 3-Month Key Sales Figures 2020/21 Resilient performance in chocolate EMEA Group Sales volume: Americas 251,554 162,070 560,354 29% 45% tonnes Global Cocoa Asia Pacific 112,650 34,080 20% 6% EMEA Americas Asia Pacific Global Cocoa FY volume growth -6.7% +6.0% +1.8% -13.1% +0.4% -1.0% -12.2
Slide 16: Gradual recovery of key growth drivers
Highlights 3-Month Key Sales Figures 2020/21 To be updated Gradual recovery of Key growth drivers =FPA % of total % volume growth Group volume vs. prior year 37% +0.9% Emerging excl. Cocoa: Markets +4.7% Key growth drivers 34% Outsourcing crucial to +2.6% Long-term continuously Partnerships outperfo
Slide 17: Cocoa combined ratio development
Cocoa processing profitability Cocoa combined ratio development European combined ratio - 6 month forward ratio Combined ratio gives broad 4.00 indication… Shows general high level industry 3.50 Combined direction, assuming many variables ratio 3.4x are fixed 3.00 However… Butter Many variables are
Slide 18: Price developments of key raw materials
Raw materials Price developments of key raw materials 200% 180% 160% 140% 120% Change Q1 2019/20 (average) 100% Milk powder -8.7% Cocoa beans -7.2% 80% Sugar EU -3.9% Sugar World +14.3% 60% 40% 20% 0% Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Cocoa beans Dairy Suga
Slide 19: Strategy & Outlook
STRATEGY & OUTLOOK 19 Q1 2020/21 Roadshow presentation
Slide 20: Consistent long-term strategy in unprecedented times
Strategy & Outlook Consistent long-term strategy in unprecedented times management COVID-19 20 Q1 2020/21 Roadshow presentation
Slide 21: Seize opportunities
Strategy Seize opportunities Expansion Innovation Ongoing investment Riding the wave La Morella Nuts global expansion and opening of global Center of Expertise Expansion plant-based offerings New factories in Baramati, India and Novi Sad, Serbia Making the wave expected to be operational Q2 2020/21
Slide 22: Sustainability
Strategy Sustainability Highlights 4th Forever Chocolate progress report –8.1% reduction of our corporate carbon footprint Over 180,000 farms mapped on geographic and socio- economic data Almost 100,000 cocoa farmers trained on child labor awareness over 2 million cocoa seedlings and over 1.6 millio
Slide 23: 4th Forever Chocolate Progress Report
Strategy 4th Forever Chocolate Progress Report 23 Q1 2020/21 Roadshow presentation
Slide 24: 4th Forever Chocolate Progress Report
Strategy 4th Forever Chocolate Progress Report 24 Q1 2020/21 Roadshow presentation
Slide 25: Progressive recovery and consistent focus on 'smart' growth
Outlook Progressive recovery and consistent focus on ‘smart’ growth In still volatile markets, we continue to find new ways of doing business and seize opportunities while maintaining strict cost discipline. We see a gradual recovery, supported by our consistent focus on ‘smart growth’, our broad cu
Slide 26: Appendix
APPENDIX 26 Q1 2020/21 Roadshow presentation
Slide 27: 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 a
Slide 28: 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) 1Q 2020/21: +2.6% 2015-20 average: -0.4% 1Q 2020/21: -0.4% EEMEA (25% of market) 2015-20 average: +0.7% 1Q 2020/21: -4.3% Asia Pacific (13% of market
Slide 29: 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 Volume growth, % 4 2’000 Absolute volume growth in tonnes / CAGR % GBP / tonne 3 2 1’500 Chocolate c
Slide 30: Resilient performance across Regions
Appendix - FY 2019/20 Results Resilient performance across Regions EMEA Americas 945,640 Group Sales volume: 565,650 45% 2,095,982 27% tonnes Global Cocoa 457,386 Asia Pacific 22% 127,306 6% EMEA Americas Asia Pacific Global Cocoa FY volume -3.6% -1.4% +7.4% -2.0% growth EBIT growth in local -20.8%
Slide 31: COVID-19 impact on volume and mix
Appendix - FY 2019/20 Gross profit COVID-19 impact on volume and mix In CHF millions -6.8% 1,199 -25 0 1,117 -57 1,064 -53 Gross Profit FY Volume Mix (Incl. COVID) Cocoa Gross Profit FX Gross Profit 2018/19 FY 2019/20, in LC FY 2019/20 pro-forma IFRS16 31 Q1 2020/21 Roadshow presentation
Slide 32: Operating profit (EBIT) recurring impacted by adverse mix
Appendix – FY 2019/20 EBIT bridge Operating profit (EBIT) recurring impacted by adverse mix In CHF million -13.8% 603 520 -82 -1 -8 483 -29 EBIT FY 2018/19 Gross Profit SG&A, Scope EBIT Factory FX EBIT pro-forma IFRS16 FY 2019/20, closure costs FY 2019/20 recurring, in LC 32 Q1 2020/21 Roadshow pres
Slide 33: 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 327 312 312 290 295 282 274 279 271 283 286 251 282 272 234 256 242 223 231 231 219 2’036 2,140 2,096 1’795 1’834 1’914 1’717 1’379 1’536 1’2
Slide 34: Strict management of financing cost support solid Net profit
Appendix - FY 2019/20 EBITDA to Net profit bridge Strict management of financing cost support solid Net profit In CHF million 704 Effective Tax rate: 18.2% (PY 18.6%3) 483 -13.3% -221 392 (PY -2111) 20 339 -102 311 8 (PY-117 1,2) -69 (PY -913) EBITDA Depreciation EBIT Financial Income Net Profit Fac
Slide 35: Strict working capital management supporting strong free cash flow
Appendix – FY 2019/20 Free cash flow Strict Working capital management supporting strong Free cash flow generation In CHF million -13.4% 108 814 (PY -33) 704 -149 (PY -2012) 404 -87 (PY 2911,2) (PY +66) 317 (PY 3571,2) -281 22 (PY -280) EBITDA EBITDA Change in Interest paid CAPEX Others FCF FY RMI B
Slide 36: Solid liquidity profile with no outstanding amounts under the RCF
Appendix – FY 2019/20 Liquidity profile Solid liquidity profile with no outstanding amounts under the Revolving Credit Facility as per year end 5,419 ABS As of 31 Aug 2020 CHF 929 M Various uncommitted facilities 57% EUR 750 M Domestic Commercial Paper Programme 1,690 ABS EUR 1 B Revolving Maturity