L''é ± I½'±é 2010/11
E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 1 11.11.11 12:19 BÞéé_ CÞùù'|Þ< With annual sales of about CHF4.6 billion (EUR3.6 billion/USD 5.0billion) for fiscal year 2010/11, Zurich-based BarryCallebaut is the world’sleading manufacturer of high-quality cocoaand chocolate – from the cocoabean to the finished chocolate product. BarryCallebaut is presentin27countries,operates around 40 production facilities and employs adiverse and dedicated workforce of about 6,000 people.BarryCallebaut servesthe entirefood industryfocusing on indus- trial food manufacturers,artisans and professional users of chocolate (such as chocolatiers,pastrychefsorbakers), the latter with its twoglobal brands Cacao Barry® and Callebaut®.BarryCallebaut is the global leader in cocoaand chocolate innovations and provides acomprehensiverange of services in the fields of productdevelopment, processing,training and marketing.Cost leadership is another importantreason whyglobal as well as local food manufacturers work together with BarryCallebaut. Through its broad rangeofsustainability initiatives and research activi- ties,the companyworkswith farmers,farmer organizations and other partners to help ensurefuturesupplies of cocoaand improvefarmer livelihoods.
E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 2 11.11.11 12:19 Solid and profitable growth: sales volume +7.2% EBIT +15.3%1 net profit+19.8%1 Main growth drivers: Emerging markets, Gourmet and strategic partnerships New strategic pillar “Sustainable Cocoa” Financial targets confirmed 2
1Inlocal currencies; from continuing operations. 2Four-year growth targets for 2009/10–2012/13: On average 6–8% volume growth and average EBIT growth in local currencies at least in line with volume growth –barring any unforeseen events.
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E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 3 11.11.11 12:19 BarryCallebaut is organized into BÞéé_ differentregions: Region Europe (incl. Western and Eastern Europe), CÞùù'|Þ< Region Americas and Region Asia-Pacific. The globally managed Þ Þ NùÞ½t' Global Sourcing &Cocoa business is reported as aseparatesegment likeaRegion.Thereare three differ- entProductGroups: CocoaProducts, Food Manufacturers Products and Gourmet &Specialties Products.
Global Sourcing & Europe Americas Asia-Pacific Cocoa
Food Manufacturers, Food Manufacturers, Food Manufacturers, Cocoa Gourmet Gourmet Gourmet
52%ofconsolidated 24% of consolidated 4% of consolidated 20% of consolidated sales volume sales volume sales volume sales volume
Volume growth vs.prior year +1.8% +8.2% +10.4%+21.7%
EBIT growth vs.prior year +10.0% (11.6%) +33.0% +57.2% (in local currencies)
SMÞé' ^éât' $''ù±^+'½ Dââ$'½$^'éMÞé' BÞéé_ CÞùù'|Þ< .I½$ât' in CHF Rebased (in CHF) +Â.Â% Ú(.( Ú.· Ú.( ÚÚ.( ÚÚ.(
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(· ··/·Â ··Â/· ··/·Ù ··Ù/Ú· ·Ú·/ÚÚⁱ (· Dividend yield Ú.% Ú.% .% .·% .·% Sept. · Sept. ·Â Sept. · Sept. ·Ù Sept. Ú· Sept. ÚÚ Payout ratio Ù% % % Ù%Ú% BarryCallebaut AG SPI Swiss Performance Index 1 As proposed by the BoardofDirectors to the Annual General Meeting SPI Small &Mid-Cap Index 2 Dividend yield based on shareprice at year-end; 2009/10 and before DowJones Euro StoxxFood &BeverageIndex in the form of aper sharereduction
E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 4 11.11.11 12:19 K'_ ±âN<é' BÞéé_ CÞùù'|Þ< Gé±<^ BarryCallebaut Letter to Investors 2010/11
Keyfigures BarryCallebaut Group for the fiscal year ended August 31, ·Ú·/ÚÚ ··Ù/Ú·1 Change (%) in local in reporting currencies currency
Consolidated Income Statement Sales volume Tonnes Â.%Ú,Ù, Ú,·Ù,( Sales revenue CHFm Ú.% ·.Â% ,((.,(.( Gross profitCHF mÚÚ.%Ú.(%(Ù.· Ù.( EBITDA2 CHFm Ú.% .% .Ú Ú. Operating profit(EBIT)CHF mÚ(.% (.Â%·. Ú.Ú Net profitfromcontinuing operations3 CHFm ÚÙ.% Ù.·% (.Ù Â.( Net profitfor the year CHFm (.·%) (Ù.%) ÚÂ. (Ú. Cash flow4 CHFm (Ú.%) (·. (Â. EBIT per tonne5 CHF Â.%(Ú.%) Â.Ú .·
as of August Ú, ·ÚÚAugust Ú, ·Ú· Consolidated BalanceSheet Total assets CHFm (.%) ,.Ú ,(·. Net working capital6 CHFm (.·%) .Ú Ù.Ù Non-currentassets CHFm (Ú.·%) Ú,·. Ú,·(. Net debt CHFm (Ù.%) ÂÙ.·. Shareholders’ equity7 CHFm (.(%) Ú,ÚÂ.Ú Ú,·.
Ratios Economic value added (EVA)CHF m (.%Ú(. ÚÂ. Return on invested capital (ROIC) % .(%Ú(.(%Ú.% Return on equity (ROE) % .Ù% ·.% ÚÙ.% Debt to equity ratio %(.Ù%) .Ù%.Ù%
Shares Shareprice end of reporting period CHF .% Â(.· ·.· EBIT per share8 CHF (.%Ù..· Basic earnings per share9 CHF Ù.Â% (·. (.Ù Cash earnings per share10 CHF(Ú.(%) Â. . Payout per share11 CHFÚ·.Â%Ú(.(Ú.·
Other Employees (,ÙÂ Â,((·
1Due to the discontinuation of the European Consumer Products business certain comparatives related to the Income Statement have been restated to conform with the current period’spresentation. Balance Sheet and Cash Flow Statement related values incl. key figures based on those and the number of employees have not been restated 2EBIT+depreciation of property,plant and equipment+amortization of intangibles (all excluding discontinued operations) 3Net profitfromcontinuing operations (including non-controlling interest) 4Operating cash flow beforeworking capital changes 5EBIT/sales volume of the continuing operations 6Includes current assets and liabilities related to commercial activities and current provisions 7Total equity attributable to the shareholders of the parent company 8Based on EBIT/basic shares outstanding 9Based on the net profitfor the year attributable to the shareholders of the parent company excl. net result from discontinued operations/basic shares outstanding 10 Operating cash flow beforeworking capital changes/basic shares outstanding 11 2010/11 dividend out of paid in capital reserves as proposed by the BoardofDirectors to the Annual General Meeting; 2009/10 par value reduction instead of adividend
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E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 5 11.11.11 12:19 E$â±éâÞù BarryCallebaut Letter to Investors 2010/11
D'Þé SMÞé'M±ù$'é
We sawanother year wherewedelivered on our targets.Despite market conditions that wereincreasingly challenging in the second half of this fiscal year,wewereable to grow morethan twice as fast as the global chocolate market1 with sales volume up 7. 2%. All our Regions and Product Groups contributed to this top-line growth. Sales revenue rose strongly by 13.3% in local currencies.Operating profit(EBIT) significantly increased by 15.3% in local currencies.Aswewant to sharethis good Andreas Jacobs result with you, our dear shareholders,the BoardofDirectors propose to the Chairman of the Board Annual General Meeting of Shareholders an increase of the dividend by 10.7% to CHF 15.50.
Our positive results areeven moreimpressive given the recent crisis situation in Côte d’Ivoire, where, due to political conflicts following the presidential elections, cocoa and semi-finished products couldn’t leave the country from January until the end of April 2011.Weare extremely proud of how our local colleagues handled the crisis.With the tireless help of our Global Sourcing &Cocoa team and thanks to our worldwide network we wereable to honor all customer contracts. JuergenSteinemann Chief ExecutiveOfficer This year was marked by several milestones: After the sale of our European Con- sumer Products business,Stollwerck, our Group is now –inline with earlier an- nouncements –focusing on its corebusiness serving the food industry and the Gourmet business,consisting of artisans and other professional users of chocolate. With the sale of Stollwerck to the Belgian Baronie Group,webelieve we found a very good new home for our former colleagues.Atthe same time,these colleagues became an outsourcing partner through along-term supply agreement: We supply the new owner with liquid chocolate as well as with cocoa beans and semi-finished products.Weare also very proud of the signing of along-term global master product agreement with Kraft Foods at the very beginning of this fiscal year. Furthermore, we expanded our supply agreement with Hershey.After securing our first outsourcing volumes with Hershey in 2007,wecouldn’t receive abetter compliment. In addition, we closed anew outsourcing agreement with Chocolates Turín in Mexico,including the acquisition of achocolate production facility in Toluca, further enhancing our presence in the promising Mexican market.
1The global chocolate market grew by 3.1% per annum in volume.Source: Nielsen, September 2010–August 2011
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Consumer demand for chocolate in general and for responsibly grown cocoa is on the rise –the average long-term growth rate of the world chocolate consumption is 2–3% per annum. Although, we just sawabumper crop in season 2010/11, we expect significant challenges ahead in securing sufficient supplies of high quality, responsibly grown cocoa to meet futurechocolate demand. Our answer to this dilemma is the addition of anew,fourth strategic pillar “Sustainable Cocoa” to our current three pillars of Expansion, Innovation, and Cost Leadership.Sustainable Cocoa stands for morevolumes and better quality,aiming to secureour future growth ambitions.With this we will also scale up our certified volumes.Inorder to get this done,wehavelaunched adedicated initiative that consists of three action areas: Improving Farmer Practices with so-called yield enhancement services, Farmer Education through the set-up and implementation of an education curricu- lum for secondary schools and Farmer Health to improve the livelihood of farmer communities with which we work directly.Additionally,wewill increase our activi- ties with the installation of various Farmer Academies and the implementation of aseries of showcase farms.
Forthe fiscal year ahead of us,our main focus is on the successful implementation of the recently gained outsourcing and long-term partnership agreements as well as on the completion of the measures to support the acceleration of the growth of our Gourmet &Specialties Products business.After the sale of our European Con- sumer Products business,wewill continue to work on simplifying organizational structures in order to further gain speed and become moreefficient and customer- focused. Recently,weworked out anew growth strategy for Region Asia-Pacific, defining the next steps in this growth region. In fiscal year 2011/12, we will imple- ment it and start asimilar process focusing on Eastern Europe.Last but not least, we arekeeping the pace of our R&D organization. Against this background, we remain confident that we will achieve our mid-term financial goals and arethere- foreconfirming our guidance.1
November 10,2011
Andreas Jacobs JuergenSteinemann Chairman of the BoardChief ExecutiveOfficer
1Four-year growth targets for 2009/10–2012/13: On average 6–8% volume growth and average EBIT growth in local currencies at least in line with volume growth –barring any unforeseen events
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E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 7 11.11.11 12:19 SÞù' ±ù<+' SÞù' é''½<' in tonnes in CHFmillion
Ú,(··,··· ,···
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· · ·/·Â ·Â/· ·/·Ù ·Ù/Ú· Ú·/ÚÚ ·/·Â ·Â/· ·/·Ù ·Ù/Ú· Ú·/ÚÚ ■ Discontinued operations (European Consumer Products business) ■ Discontinued operations (European Consumer Products business) ■ Continuing operations ■ Continuing operations
EBIT N' ^é±±â in CHFmillion in CHFmillion
·· ·· (· (· ·· ·· (· ·· Ú(· Ú(· Ú·· Ú·· (· (· · · ·/·Â ·Â/· ·/·Ù ·Ù/Ú· Ú·/ÚÚ ·/·Â ·Â/· ·/·Ù ·Ù/Ú· Ú·/ÚÚ ■ Discontinued operations (European Consumer Products business) ■ Continuing operations ■ Continuing operations
SÞù' ±ù<+' SÞù' ±ù<+' |_ R'Nâ±½* |_ Pé±$ (% Europe Ù% Food Manu- 671,424 facturers Products 896,117 % Americas 313,635 ·% Cocoa Products 258,982 % Asia-Pacific 52,397 ÚÚ% Gourmet & Specialties ·% Global Products Sourcing & 141,339 Cocoa 258,982 * Continuing operations * Continuing operations E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 8 11.11.11 12:19 K'_ ±âN<é'|_R'Nâ±½ Þ½$ Pé±$ Keyfigures by Region and ProductGroup – from continuing operations for the fiscal year ended August 31, ·Ú·/ÚÚ ··Ù/Ú·Ú Change (%) in local in reporting currencies currency By Region Europe Sales volume Tonnes Ú.%ÂÚ, (Ù,Ú Sales revenue CHFm Â.(%((.%) ,Ú. ,.Ù EBITDACHF mÚ·.% .(% Â.( (. EBIT CHFm Ú·.·% .% .· . Americas Sales volume Tonnes .%Ú,( Ù,Ù· Sales revenue CHFm Ú.%(·.Ù%) ÙÂ.ÙÙÂ. EBITDACHF m(Ú·.%) (Ú.Â%) (. Ú·(.· EBIT CHFm (ÚÚ.%) (ÚÙ.(%) ÂÚ.Ù Ù. Asia-Pacific Sales volume Tonnes Ú·.% (,Ù Â, Sales revenue CHFm Ú(.% .Ù% Ú.Ù ·Â.( EBITDACHF m .%Ú.Ù% Ù. (.( EBIT CHFm .·% .Â% .Ù ·. Global Sourcing &Cocoa Sales volume Tonnes Ú.Â% (,ÙÚ, Sales revenue CHFm .(%Ú(.%Ú,ÚÚ. Ù.( EBITDACHF m .·%·.% Ù.· Â(. EBIT CHFm (Â.% ·.% Â. (.( By ProductGroup Sales volume CocoaProducts Tonnes Ú.Â% (,ÙÚ, Food Manufacturer Products Tonnes .% Ù,ÚÚÂ,· Gourmet &Specialties Products Tonnes .%ÚÚ,Ù Ú,· Sales revenue CocoaProducts CHFm .(%Ú(.%Ú,ÚÚ. Ù.( Food Manufacturer Products CHFm .%(.%) ,Â. ,(. Gourmet &Specialties Products CHFm Ú.Ù%·.Ù% ÂÚ.·Â. 1Due to the discontinuation of the European Consumer Products business,certain comparatives have been restated to conform with the current period’spresentation 9 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 9 11.11.11 12:19 HâNMùâNM BarryCallebaut Letter to Investors 2010/11 This fiscal year wasmarked by milestones thatset the stage forsuperior performanceand growth in the future. September 2010 Barry Callebaut signed along-term global supply agreement with Kraft Foods Inc., making Barry Callebaut the keycocoa and industrial chocolate supplier to the world’ssecond largest food company. April 2011 Barry Callebaut launched an extensive agronomic research program in Malaysia aimed at developing new cocoa cultivation techniques. Barry Callebaut acquired the remaining 40% stakeinBarry Callebaut Malay- sia Sdn Bhd, formerly operating under the name of KLK Cocoa. May2011 TheHershey Company,North America’sleading manufacturer of chocolate and confectionery products,awarded Barry Callebaut with additional volume on along- term basis,expanding the agreement signed in 2007. Moody’sInvestor Service assigned aBaa3 corporate rating to Barry Callebaut, up from Ba1. Therating’soutlook is stable. June 2011 Barry Callebaut successfully placed along-term bond and renewed and amended the terms and conditions of its existing long-term revolving credit facility. Barry Callebaut signed along-term outsourcing agreement with Mexican Chocolates Turín, and acquired aproduction facility from Turín. At the same time, Turín was appointed for the distribution of Barry Callebaut’sglobal Gourmet brands Cacao Barry® and Callebaut® in Mexico. July 2011 Barry Callebaut sold its European Consumer Products business to the Belgian Baronie Group.The transaction includes along-term supply agreement for the delivery of liquid chocolate,cocoa and semi-finished products to the Baronie Group. 10 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 10 11.11.11 12:19 5-Y'Þé ±'éâ'È BarryCallebaut Letter to Investors 2010/11 KeyFigures BarryCallebaut Group CAGR (%)15 ·Ú·/ÚÚ ··Ù/Ú·16 ··/·Ù ··Â/· ··/·Â Consolidated Income Statement Sales volume Tonnes (.%Ú,Ù, Ú,·Ù,( Ú,Ú,Ú· Ú,Ú,··Â Ú,·(Ù,·· Sales revenue CHFm .% ,((.,(.( ,·.,Ú(.,Ú·. EBITDA1 CHFm ·.% .Ú Ú. (.Ú . Â.Ú Operating profit(EBIT)CHF m .Â%·. Ú.Ú(·. Ú.Ú.· Net profitfromcontinuing operations2 CHFm (.Â% (.Ù Â.( .Ù ·Ù.Ú ·Â.· Net profitfor the year CHFm Ù.%ÚÂ. (Ú. .Ù ·(.( Ú.Ú Cash flow3 CHFm .% (·. (Â. Ú.Ú . ·. EBIT/sales revenue %·.Ú% Â.Ù% Â.(% Â.% Â.Ú% Â.Ù% EBIT per tonne CHF(.%) Â.Ú .· Ù.Ú Ù.( ·(.Ù Consolidated BalanceSheet Total assets CHFm ·.% ,.Ú ,(·. ,(Ú. ,ÂÙ.( ,Ú. Net working capital4 CHFm ·.Ú% .Ú Ù.Ù Ú,·Ú·.ÚÚ,·Â.Ú .Ù Non-currentassets CHFm (·.Ú%) Ú,·. Ú,·(. Ú,. Ú,. Ú,ÚÚ. Net debt CHFm (.·%) ÂÙ.·. Ù. Ú,·Ú. Ù·. Shareholders’ equity5 CHFm .(%Ú,ÚÂ.Ú Ú,·. Ú,((. Ú,ÚÂ(.Ù Ú,·(Ù.Ú Capital expenditure6 CHFm (Ú.%) Ú. Ú(.Ú Ú.Ù.Ù Ú(.Ú Ratios Economic Value Added (EVA)CHF m.%Ú(. ÚÂ. ÚÙ.Ù Ú.Ú.Ù Return on invested capital (ROIC)7 % .·%Ú(.(%Ú.%Ú.Ù%Ú.·%Ú.% Return on equity (ROE) %Ú.% ·.% ÚÙ.%Ú.Ú%ÚÂ.Â%ÚÙ.(% Debt to equity ratio %(Â.%) .Ù%.Ù% Â(.Ú% .(% Â.% Solvency ratio8 % .Ù%Â.% .(%(.Â%Ú.(%.% Interest coverage ratio9 .Â% (.Ù(.(.· . (.Ú Net debt/EBITDA(.Â%) Ú. .Ú .Ú . . Capital expenditure/sales revenue %(.%) .%.%.·% (.%.Â% Shares Shareprice at fiscal year-end CHF(.%) Â( · (   EBIT per share10 CHF .Â%Ù. .· Â. .· . Basic earnings per share11 CHF (.% (·. (.Ù .· ·.·. Cash earnings per share12 CHF .% Â. . Ú.Ú .Ù Â. Payout per share13 CHF Â.Â%Ú(.( Ú.· Ú.( ÚÚ.( ÚÚ.( Payout ratio %Ú.Ù%Ú% Ù% % % Ù% Price-earnings ratio at year-end14 (.(%) Ú(. Ú(. Ú.· ÚÂ.Ù Ú. Market capitalization at year-end CHFm (.%) ,Ù((.Ú ,Ú.Ù ,ÙÂ. ,Â.Ú ,(Ú·. Number of shares issued ·.·% (,Ú·,··· (,Ú·,··· (,Ú·,··· (,Ú·,··· (,Ú·,··· Total capital repaymentCHF m Â.(% Â. . (Ù.((Ù.((. Other Employees ((.%) (,Ù Â,((· Â,(( Â,Ú Â,(Ù Beans processed Tonnes (.·% (Â,ÚÚ (Ù,Â((Ú, ÂÚ,ÚÙ , Chocolate &compound production Tonnes .% Ú,··,Ú Ù(,·Â ÙÂÚ,Ù(Ú ÙÂ, (, 1EBIT +depreciation of property,plant and equipment +amortization 11 Based on the net profitfor the year attributable to the shareholders of the of intangible assets (for 2009/10 and 2010/11 excluding discontinued operations) parent company excluding the net result from discontinued operations/basic 2Net profitfromcontinuing operations (including non-controlling interest) shares outstanding 3Operating cash flow beforeworking capital changes 12 Operating cash flow beforeworking capital changes/basic shares outstanding 4Includes current assets and liabilities related to commercial activities and 13 2010/11 dividend out of paid in capital reserves as proposed by the Board current provisions of Directors to the Annual General Meeting; 2009/10 and beforepar value 5Total equity attributable to the shareholders of the parent company reduction instead of adividend 6Capital expenditurefor property,plant and equipment and intangible 14 Shareprice at year-end/basic earnings per share assets (excl. acquisitions) 15 Compound annual growth rate for the 5-year period 7EBIT x(1-effective tax rate)/average capital employed 16 Duetothe discontinuation of the European Consumer Products business certain 8Total equity attributable to the shareholders of the parent company/total assets comparatives related to the Income Statement have been restated to conform with the current period’spresentation. Balance Sheet and Cash Flow Statement 9EBITDA/net financial expense related values incl. key figures based on those and the number of employees 10 Based on EBIT/basic shares outstanding have not been restated. No restatements11 weremade for any year prior to 2009/10 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 11 11.11.11 12:19 SéÞ'N_ BarryCallebaut Letter to Investors 2010/11 The ambitious growth strategyofBarryCallebaut is based on four pillars: Expansion Barry Callebaut intends to accelerate the growth of its Gourmet business.With regardtothe industrial customers,the company wants to strengthen its position in the main markets of Western Europe and North America. In emerging markets like Russia, China, Poland, Mexico and Brazil, Barry Callebaut aims to develop their full potential. Lastly,the company will carefully evaluate how to enter other emerg- ing markets.Implementing existing outsourcing volumes and strategic partnerships as well as securing further outsourcing deals with regional and local food manufac- Expansion turers will remain an essential part of the business strategy. Innovation Barry Callebaut is recognized as the reference for innovation in the chocolate industry.Dedicated R&D teams around the world focus on two different areas: Fundamental research into preserving the health properties of the cocoa bean and pro-active R&D leading to cutting-edge cocoa and chocolate products.The applied R&D teams,onthe other hand, support customers to improve their products and recipes as well as their production processes on their own production lines.Intotal, Barry Callebaut manages about 2,000 R&D projects,runs almost 7, 600trials and Innovation conducts morethan 400technical visits with its customers every year. Cost Leadership Cost Leadership is an important reason why for example international customers outsource their chocolate production to Barry Callebaut. Thecompany is continu- ously improving its operational efficiencybyupgrading the technology and achieving higher scale effects through better capacity utilization, by optimizing product flows, logistics and inventory management, as well as by reducing energy consumption and lowering fixed costs.Intotal, manufacturing costs per tonne in fiscal year 2010/11 werereduced by 2.2% on alike-for-likebasis (in local currencies). Cost Leadership Sustainable Cocoa Securing sufficient supplies of quality-grade,responsibly grown cocoa to meet the specificrequirements of its customers is acritical challenge for Barry Callebaut. Sustainable Cocoa stands for morevolumes and better quality cocoa, aiming to securethe company’sfuturegrowth ambitions and scaling up its certified cocoa volumes.Sustainable Cocoa consists mainly of three action areas: Improving Farmer Practices with so-called yield enhancement services,Farmer Education through an education curriculum for schools and Farmer Health. All this is aiming to improve Sustainable Cocoa the livelihood of farmer communities with which we work directly. 12 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 12 11.11.11 12:19 Vââ±½ Þ½$ Þù<' BarryCallebaut Letter to Investors 2010/11 Our vision Barry Callebaut is the heart and engine of the chocolate industry. Our goal is to be No.1in all attractive customer segments and in all major world markets. Our heritage and our knowledge of the chocolate business –fromthe cocoa bean to the finished chocolate product –makeusthe business partner of choice for the entirefood industry,fromindividual artisans to industrial food manufacturers. We seek to apply our constantly evolving expertise to helping our customers grow their businesses,and we arepassionate about creating and bringing to market new,healthy products that taste good, delight all senses,and arefun to enjoy. Our strength comes from the passion and expertise of our people for whom we strive to create an environment wherelearning and personal development is ongoing,entrepreneurship is encouraged, and creativity can flourish. Our values By anticipating market trends and investing time and effort to fully understand Customer focus customer needs,wegotogreat lengths to provide products and solutions of supe- rior value through abusiness partnership with every customer that is characterized by professionalism and mutual trust. Our pride in what our company does inspires and motivates us to give our Passion best at work. We areeager to learn about our business and to shareour know-how and enthusiasm with others. With the goal to create superior customer value,weconstructively challenge Entrepreneurship the status quo and exploreopportunities to innovate: new eating trends,new mar- kets,new ideas for products and services,and new ways of doing business.Weare willing to takecontrolled risks and aredetermined to persevere. Whether in the field, on the shop floor or in administration –weare one team, Team spirit sharing acommon purpose and common goals.All members of this team actively engage in open communication and idea sharing and arecommitted to working together to achieve our common goals across the whole organization. We show respect for our fellow team members and all our stakeholders Integrity and arehonest, trustworthy,and open-minded in all our business activities and relationships.Welive up to high ethical standards that promote fairness,equality, and diversity. 13 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 13 11.11.11 12:19 C±+^Þ½_Mâ±é_ BarryCallebaut Letter to Investors 2010/11 Barry Callebaut, headquartered in Switzerland, resulted from the merger between Belgian chocolate producer Callebaut and French chocolate maker Cacao Barry in 1996.Themerger combined Cacao Barry’sknow-how in procurement and initial processing of cocoa beans with Callebaut’sextensive experience in producing and marketing chocolate products.Since 1998, Barry Callebaut has been listed on the SIX Swiss Exchange. 1999 Acquisition of Carma AG 2008 Acquisition of IBC,specialist in Switzerland in decorations in Kortrijk-Heule, 2002 Acquisition of the Stollwerck Belgium Group in Germany 2008 Outsourcing agreement with 2003 Acquisition of Dutch Group Morinaga in Japan and start of Graverboom B.V. production in new factory (including Luijckx B.V.) 2009 Opening of achocolate factory 2003 Acquisition of Brach’s Confec- in Monterrey,Mexico tions Holding,Inc.inthe U.S. 2009 Sale of VanHouten Singapore 2004 Acquisition of the vending mix consumer business to Hershey’s business of AM Foods in Sweden 2009 Distribution agreement signed 2005 Opening of achocolate factory with Bunge Alimentos in Brazil in California, U.S. 2009 Acquisition of Danish vending 2007 Opening of achocolate factory mix company Eurogran in Chekhov,Russia 2009 Acquisition of Spanish chocolate 2007 Divestment of Brach’s maker Chocovic,S.A. Confections Holding,Inc. 2010 Opening of achocolate factory in the U.S. in Extrema, Brazil 2007 Signing of major outsourcing 2010 Signing of amajor outsourcing contracts with Nestlé, contract with Kraft Foods Inc. Hershey and Cadbury 2011 Acquisition of remaining 2007 Acquisition of acocoa factory 40% stakeinBarry Callebaut in Pennsylvania, U.S. Malaysia Sdn Bhd, formerly 2008 Opening of achocolate factory KLK Cocoa in Suzhou, China 2011 Expansion of the existing 2008 Acquisition of a49% stake supply and innovation in Biolands,Tanzania agreement with Hershey 2008 Acquisition of a60% stake 2011 Signing of along-term in KLK Cocoa in Malaysia outsourcing agreement with 2008 Opening of asales office Chocolates Turín, Mexico and Chocolate Academy in 2011 Sale of European Consumer Mumbai, India Products business to 2008 Opening of four Chocolate Belgian Baronie Group Academies in Suzhou, China; Zundert, the Netherlands; Chekhov,Russia, and Chicago,U.S. 14 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 14 11.11.11 12:19 I½±±é+Þâ±½ BarryCallebaut Letter to Investors 2010/11 Contacts Financial Calendar Forward-looking statement BarryCallebaut head office December 8, 2011 Certain statements in this Letter to Investors re- Barry Callebaut AG Annual General Meeting garding the business of Barry Callebaut areof West-Park 2010/11, Zurich aforward-looking natureand arethereforebased Pfingstweidstrasse 60 on management’scurrent assumptions about future 8005 Zurich, Switzerland January17, 2012 developments.Such forward-looking statements Phone +41 43 204 04 04 3-month keysales figures areintended to be identified by words such as “be- Fax+41 43 204 04 00 2011/12 lieve,” “estimate,” “intend,” “may,” “will,” “expect,” www.barry-callebaut.com “project” and similar expressions as they relate to April 2, 2012 the company.Forward-looking statements involve Investor Relations Half-year results 2011/12, Zurich certain risks and uncertainties because they relate Evelyn Nassar to futureevents.Actual results mayvary materially Head of Investor Relations July 5, 2012 from those targeted, expected or projected due to Phone +41 43 204 04 23 9-month keysales figures several factors.The factors that mayaffect Barry Fax+41 43 204 04 19 2011/12 Callebaut’sfuture financial results arediscussed in investorrelations@ the Annual Report 2010/11.Such factors are, among barry-callebaut.com November 7, 2012 others,general economic conditions,foreign ex- Full-year results 2011/12, change fluctuations,competitive product and pricing Media Zurich pressures as well as changes in tax regimes and regu- Raphael Wermuth latory developments.The reader is cautioned to not External Communications December 5, 2012 unduly rely on these forward-looking statements Manager Annual General Meeting that areaccurate only as of today, November 10, Phone +41 43 204 04 58 2011/12, Zurich 2011.Barry Callebaut does not undertaketopub- Fax+41 43 204 04 00 lish any update or revision of any forward-looking [email protected] statements. Address changes SIX SAGAktienregister AG P. O. Box 4609 Olten, Switzerland Phone +41 62 311 61 11 Fax+41 62 311 61 12 Imprint Publisher Conception/Design Prepress/Print This Letter to Investors Printed by Linkgroup Barry Callebaut AG hilda design matters, Linkgroup, is printed on without impacting the West-Park Zurich, Switzerland Zurich, Switzerland FSC-certified paper. climate. Pfingstweidstrasse 60 Photography This Letter to Investors 8005 Zurich Marcel VanCoile, is published in German Switzerland Zemst, Belgium and English. DASBILD, Zurich, Switzerland 15 E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 15 11.11.11 12:19 BarryCallebaut AG (head office) West-Park Pfingstweidstrasse 60 8005 Zurich Switzerland Phone: +4143204 04 04 Fax: +4143204 04 00 E-mail: headoffi[email protected] E_04_BC_AR11_Letter-Investors_(Layout CS5) [P].indd 16 11.11.11 12:19