Roadshow presentation Full-Year Results 2018/19 November 2019 - PowerPoint PPT Presentation

Roadshow presentation Full-Year Results 2018/19 November 2019

AGENDA BC at a glance Highlights Full-Year 2018/19 Strategy & Outlook Appendix

BC AT A GLANCE 3 FY 2018/19 Roadshow presentation

BC at a glance - Who are we? Strong values & strong team A me merg rger between Ca Caca cao Ba Barr rry, the very first French chocolate connaisseur since 1842 and Ca Calle llebaut a Belgian chocolate couverture manufacturer expert since 1911 Listed on the SI SIX X Swiss Exchange sin ince 1998 Jacobs Holding long-term anchor share rehold older r with 50.1% of the outstanding shares Strong and diverse ma management tea eam with 120 years of chocolate experience Barry Callebaut is in ev every ery 4th of all con onsumer pr product containing cocoa or chocolate 4 FY 2018/19 Roadshow presentation

BC at a glance – This is Barry Callebaut ‘Shaping the world of chocolate and cocoa’ Full-Year 2018/19 5 FY 2018/19 Roadshow presentation

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 FY 2018/19 Roadshow presentation

BC at a glance – Market Leadership A strong global market leader Market impact Cocoa grinding capacity (kMT) Industrial Chocolate (open market – kMT) BC BC Cargill Cargill Olam Fuji Oil ECOM Puratos Fuji Oil Cémoi Guan Chong Clasen Mondelez Schokinag Nestlé Irca Ferrero Kerry Group BT Cocoa Guittard Others Others Note: Olam incl. ADM, Cargill incl. ADM chocolate business and SMET, Fuji oil incl. Harald and Bloomer, Irca incl. Doblar Source: BC proprietary estimates 7 FY 2018/19 Roadshow presentation

BC at a glance – offering and business model A broad offering with cost plus approach on majority of business Cocoa Products Gourmet & Specialties Food Manufacturers % share : 22%* of volumes 66%* of volumes 12%* of volumes Customer : Small, medium Global Food Small, medium Global Food Professionals, Food Chains, Manufacturers Manufacturers Distributors, HORECA Market prices, Cost Plus Pricing : Cost Plus Price List (partly) Cost Plus (partly) Profit Levers : Global set-up, Customer / Customer / Product mix, Expansion global brands product mix, Combined ratio Economies of scale Adjacent products Innovation / Sustainability Products: Passing on the cost of raw materials to customers underpin profit stability by mitigating the volatility impact of main raw materials * Percentage of FY2018/19 Group sales volume 8 FY 2018/19 Roadshow presentation

BC at a glance - where are we present? A global footprint and local service: 62 factories worldwide Cocoa & Chocolate factories Chocolate Academy Cocoa factories in countries of origin and chocolate factories close to our customers. With our 23 Chocolate Academies worldwide we are at the pulse of any trends in the industry. 9 FY 2018/19 Roadshow presentation

BC at a glance – Cocoa bean sourcing West Africa is the world’s largest cocoa producer Total world harvest (17/18): 4,645 tsd MT About 70% of total cocoa beans are of others 12% We West t Afr fric ican Or Origin in Brazil* 4% Barry Callebaut processed around Ivory Coast* 43% Cameroon* 925,000 tonnes or approximately 20% 5% of of th the wor orld ld crop Indonesia* 5% Barry Callebaut has various cocoa Nigeria 6% processin ing fa facili ilitie ties in origin countries*, in Europe and USA Ecuador 6% Ghana* 19% Source: ICCO Forecast 10 FY 2018/19 Roadshow presentation

HIGHLIGHTS Full-Year 2018/19 11 FY 2018/19 Roadshow presentation

Highlights Full-Year Results 2018/19 Good momentum continues Sales volume up +5.1%, well above market growth of +1.8% 1 Sales revenue of CHF 7.3 bn, up +7.8% in local currencies (+5.2% in CHF) Operating profit (EBIT) up +11.9% in local currencies (+8.5% in CHF) Net profit 2 up +14.2% in local currencies (+10.4% in CHF) 2015/16 – 2018/19 mid-term guidance achieved – on average: +4.5% volume growth and +13.9% EBIT growth in local currencies Free cash flow of CHF 290 million Proposed payout to shareholders of CHF 26.00 (+8.3%) 1 Source: Nielsen, Aug 18 – Aug 19, 25 countries, excluding e-commerce channels 2 Net profit excluding one-off costs for early bond repayment of CHF 33 million, partly offset by the tax effect of CHF 7 million 12 FY 2018/19 Roadshow presentation

Highlights Full-Year Result 2018/19 Delivering on all strategic pillars S&P upgrade to Investment grade Launc La nch Outsourcing Strategic Completion Successful Expansion CHOCOLATE Announcement Action Plan Whol Wholefru fruit t Cho hocolate te Agreement with Partnership placement of cocoa processing new chocolate of Inforum ACADEMY TM in Cocoa and Burton’s Biscuit Tony’s Choco., Albert acquisition EUR 600m In Côte d’Ivoire Beijing, China factory Serbia Forests UK Heijn and BC Schuldschein Initiative Mar 2019 Nov 2018 Feb 2019 Apr 2019 May 2019 Jul 2019 Aug 2019 Sep 2019 Launch CHOCOLATE Introduction ‘Cacaofruit Ruby launch in North Groundbreaking No. 1 ranking in Intensified Bensdorp ACADEMY TM Experience’ including Sustainalytics America collaboration to new chocolate Natural Dark in Antwerp, ‘Wholefruit Chocolate’ factory India support young cocoa Belgium farmers in Cameroon Announcement new Global opening new chocolate Distribution factory Center, Belgium in Rancaekek, Indonesia 13 FY 2018/19 Roadshow presentation

Highlights Full-Year Results 2018/19 Healthy growth, continued good momentum Cocoa Chocolate FY 2017/18 FY 2018/19 +10.6% +5.1% +6.3% +10.6% +8.0% +8.1% +7.4% +4.8% +5.3% +4.7% +4.8% +3.0% +1.1% +2.3% +10.7% +3.1% +9.0% +8.1% +1.7% +5.9% +5.7% +5.5% +4.3% +2.9% -0.9% -2.4% Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 +3.1% +1.7% +2.2% +1.3% +1.4% +0.9% +4.4% +1.0% Market volume growth 1 Market volume growth 1 1 Source: Nielsen August 2018 – August 2019, 25 countries, excluding e-commerce channels. 14 FY 2018/19 Roadshow presentation

Highlights Full-Year Results 2018/19 Growth continues to be broad based % of total % volume growth Group volume vs prior year +9.7% 35% excl. cocoa Emerging +12.7% Markets Key growth drivers 34% Outsourcing crucial to Long-term +5.2% continuously Partnerships outperform the market 12% +2.8% Gourmet & excl. Beverage Specialties +6.1% 15 FY 2018/19 Roadshow presentation

FINANCIAL REVIEW Full-Year 2018/19 16 FY 2018/19 Roadshow presentation

Financial review - Key figures Consistently delivering profitable growth % vs prior year % vs prior year Group performance ( in CHF millions) FY 2018/19 in CHF in local currencies Sales volume (in tonnes) 2,139,758 5.1% n/a Sales revenue 7,309.0 5.2% 7.8% Gross profit 1,188.4 2.7% 5.1% EBIT Total 601.2 8.5% 11.9% EBIT per tonne (in CHF) 281.0 3.3% 6.5% 3.2% / 10.4% 1 6.9% / 14.2% 1 Net profit for the year 368.7 Free cash flow 289.7 n/a n/a Adj. Free cash flow 2 256.8 n/a n/a 1 Net profit excluding one-off costs for early bond repayment of CHF 33 million, partly offset by the tax effect of CHF 7 million 2 Adjusted for one-off costs related to early bond repayment and of cocoa beans regarded as readily marketable inventories (RMI) 17 FY 2018/19 Roadshow presentation

Financial review – Key Performance Indicators by Region All Regions contributed to volume growth and profitability Group Sales Volume: 1’046’695 2,139,758 tonnes EBIT growth in volume growth / local currencies Market volume growth 1 EMEA +6.1% / +1.1% +5.9% EMEA Americas 981,231 573,413 27% Americas +4.4% / +1.4% +9.0% 46% Asia Pacific +12.1% / +7.7% +13.8% APAC Global Cocoa 118,548 466,566 5% 22% Global Cocoa +2.4% +25.0% 1 Source: Nielsen, chocolate confectionery in volume Aug 2018 to Aug 2019 – 25 countries, excluding e-commerce channels 18 FY 2018/19 Roadshow presentation

Gross profit Gross profit up +5.1% in local currencies, driven by good volume growth and mix effects In CHF millions +5.1% +10 +33 1,216 +59 -43 1,188 -28 1,157 Gr Gross ss Profit Volume effects Mix effects Cocoa business Additional costs Gr Gross ss Profit FX impact Gross Gr ss Profit FY Y 2017/1 /18 improvements supporting FY Y 2018/1 /19 9 FY Y 2018/1 /19 growth before FX 19 FY 2018/19 Roadshow presentation

Cocoa processing profitability Combined cocoa ratio remains at a healthy level European combined ratio – 6-month forward ratio Directionally right… 4.00 Shows general high level industry Combined direction, assuming many 3.50 Ratio 3.5 variables are fixed 3.00 However … Butter Many variables are not fixed e.g. ratio 2.50 Terminal market: outright levels, arbitrage (London vs. New York), 2.00 market structure 1.50 Differentials: structure and origin differences Powder 1.00 Forward pricing structure: butter and ratio powder 0.50 Customer forward coverage: butter and powder 0.00 Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug 19 For cocoa processors, profitability depends on the ratio between input costs (price of cocoa beans) and combined output prices (price of cocoa butter and powder). 20 FY 2018/19 Roadshow presentation