abrina Key figures 2019/20 Sales volume EBIT recurring Net profit recurring Free cash flow Proposed dividend –2.0% –13.8%1 in local currencies –13.3%1 in local currencies 39% payout ratio 2.1 491.0 319.3 317 22.00 million tonnes CHF million CHF million CHF per share CHF million 1 Operating profit (EBIT) recurring and Net profit recurring exclude the cost of CHF –7.8 million for the closure of the Makassar, Indonesia, cocoa factory. Prior-year comparatives have been calculated on a pro-forma basis to reflect the estimated impact of IFRS 16 had it been adopted at the time. Sales volume Sales revenue In tonnes In CHF million 2,400,000 9,000 2,000,000 7,500 1,600,000 6,000 1,200,000 4,500 800,000 3,000 400,000 1,500 0 0 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20 EBIT Net profit for the year In CHF million In CHF million 700 400 600 500 300 400 300 200 200 100 100 0 2015/16 2016/17 2017/18 2018/19 2019/20 0 2015/16 2016/17 2017/18 2018/19 2019/20 Sales volume by Region Sales volume by Product Group 10% In tonnes 22% In tonnes EMEA 945,640 Food Manufacturers 1,429,178 22% Americas 565,650 45% Cocoa Products 457,386 Asia Pacific 127,306 Gourmet & Specialties 209,418 Global Cocoa 457,386 6% 68% 27% Barry Callebaut | Annual Report / Fiscal year 2019/20 in brief • Sales volume down –2.0%, progressive volume recovery in fourth quarter • Sales revenue of CHF 6.9 billion, down –0.4% in local currencies (–5.7% in CHF) • Operating profit (EBIT) recurring1 of CHF 491.0 million, down –13.8%2 in local currencies (–18.5%2 in CHF) • Net profit recurring1 of CHF 319.3 million, down –13.3%2 in local currencies (–18.5%2 in CHF) • Strong Free cash flow of CHF 317 million • Confident on mid-term guidance3 • Board member Suja Chandrasekaran will not stand for reelection. Yen Yen Tan proposed as new member of the Board of Directors • Proposed dividend: CHF 22.00 per share, a stable payout ratio of 39% EMEA Americas Asia Pacific Global Cocoa Volume growth –3.6% –1.4% +7.4% –2.0% vs. prior year . EBIT growth 1 vs. prior year –20.8% +1.8% –17.2% –1.5% in local currencies 1 Operating profit (EBIT) recurring and Net profit recurring exclude the cost of CHF –7.8 million for the closure of the Makassar, Indonesia, cocoa factory. 2 Prior-year comparatives have been calculated on a pro-forma basis to reflect the estimated impact of IFRS 16 had it been adopted at the time (for the current year impact refer to Annual Report 2019/20, pages 46–49). 3 On average for the 3-year period 2020/21 to 2022/23: 5–7% volume growth and EBIT above volume growth in local currencies, barring any major unforeseeable events and based on the assumption of a gradual recovery from COVID-19 without major lockdown resurgence. Barry Callebaut | Annual Report / This is Barry Callebaut Shaping the world of chocolate and cocoa 491.0 2.1 million EBIT recurring1 More than Sales volume in CHF million in tonnes 175 years 6,893.1 of chocolate heritage Sales revenue –2.0% in CHF million Volume growth Updated mid-term guidance for the 3-year period 2020/21 to 2022/232 All Gourmet brands use on average EBIT above 5 to 7% volume growth 100% volume growth in local currencies sustainably sourced cocoa More than 23 12,000 employees CHOCOLATE TM ACADEMY Centers More than 170,000 61 chocolate aficionados factories trained online and offline in 2019/20 worldwide Selling to 1 Excluding the cost of CHF –7.8 million for the closure of the Makassar, Indonesia, cocoa factory. 143 2 Barring any major unforeseeable events and based on the assumption of a gradual recovery from COVID-19 without major lockdown resurgence. countries Barry Callebaut | Annual Report / Table of Content Letter to Shareholders Letter to Shareholders Overview Business at a Glance -Year Overview Risk Overview Business Highlights Financial Review Business Review Sustainability Forever Chocolate Our People Employee Development Financial Reports Consolidated Financial Statements Notes to the Consolidated Financial Statements Financial Statements of Barry Callebaut AG Governance Corporate Governance Remuneration Report Definition of Financial Performance Measures Contact & Financial Calendar Barry Callebaut | Annual Report / Letter to Shareholders Overview Business Highlights Sustainability Our People Financial Reports Governance Letter to Shareholders Resilient and confident We delivered solid results in unprecedented times, thanks to our long-term strategy and continued focus on Care, Continuity and Cash. Our customer focus and innovation pipeline give us confidence in our ability to expand the business and capture new opportunities. Dear Shareholders, propose a dividend of CHF 22.00 per share, corresponding to a stable payout ratio of 39%, at the Annual General We look back on an unprecedented fiscal year. As the Meeting of Shareholders, December 9, 2020. COVID-19 pandemic unfolded we took decisive action and In fiscal year 2019/20, we again achieved a number of focused on Care, Continuity and Cash. The precautionary strategic milestones. measures we put in place early on allowed us to protect the We pursued our geographic and footprint Expansion. health of our employees and the communities we operate in. In July 2020, we completed the acquisition of GKC Foods In a rapidly changing business environment we managed to (Australia), a producer of chocolate, coatings and fillings. preserve business continuity and maintain a high service We now produce on five continents! We also entered into level for our customers worldwide. We also secured a solid a long-term outsourcing agreement to supply a leading financial basis, further strengthening our balance sheet. Australian snacking company with 100% sustainable In fiscal year 2019/20, as a result of the pandemic, we chocolate. Both transactions will enable the Group to saw our sales volume decline by –2.0% to 2,095,982 tonnes. accelerate growth in the two still largely captive markets As anticipated, sales volume showed a progressive recovery of Australia and New Zealand. In June 2020, we added a in the fourth quarter. Sales volume in the chocolate business fourth production line to the Senoko plant in Singapore, a declined by –2.1% in the fiscal year under review. significant contribution to our largest chocolate factory in The underlying confectionery market was down –0.3% the Region Asia Pacific, to meet increasing demand. according to Nielsen data.1 The data does not fully capture In Region EMEA, we signed in May 2020 an agreement the out-of-home and impulse consumption, which was with a large chocolate confectionery manufacturer in heavily impacted by the lockdowns due to COVID-19. Eastern Europe, for the long-term supply of compound and Sales revenue declined by –0.4% in local currencies to chocolate. Earlier this year, we inaugurated the revamped CHF 6,893.1 million. Operating profit (EBIT) recurring2 CHOCOLATE ACADEMY™ Center in Banbury, UK, as a amounted to CHF 491.0 million, a decrease of –13.8%3 in part of the Group’s growth strategy in one of Europe’s biggest local currencies. Net profit for the year recurring2 amounted chocolate confectionery markets in volume terms. to CHF 319.3 million, down –13.3%3 in local currencies In the past fiscal year, we also strengthened our presence compared to prior year. Free cash flow remained strong at in Latin America. We laid the first stone for the construction CHF 317 million, compared to CHF 324 million in prior of a cocoa sourcing facility in Duran, Ecuador, underlining year3, supported by strict management of working capital. our strategic efforts to grow in Ecuador, the world’s third As a company, we are committed to the long-term largest and fast growing cocoa producing country. creation of value for our shareholders and stakeholders. Based on these solid results, the Board of Directors will 1 Source: Nielsen volume growth excluding e-commerce, September 2019 – August 2020 – 25 countries. 2 Operating profit (EBIT) recurring and Net profit recurring exclude the cost of CHF –7.8 million for the closure of the Makassar, Indonesia, cocoa factory. 3 Prior-year comparatives have been calculated on a pro-forma basis to reflect the estimated impact of IFRS 16 had it been adopted at the time (for the current year impact see Annual Report 2019/20, pages 46–49). Barry Callebaut | Annual Report / Letter to Shareholders Overview Business Highlights Sustainability Our People Financial Reports Governance Letter to Shareholders Chairman of the Board Patrick De Maeseneire and CEO Antoine de Saint-Affrique. Picture taken before COVID- pandemic. “In these unprecedented times, “We continue to expand, innovate we bolstered our reputation with and drive sustainability, while customers and suppliers, building strengthening our financial basis. strong foundations for future The people at Barry Callebaut are value creation.” making a real difference.” Patrick De Maeseneire, Chairman of the Board Antoine de Saint-Affrique, CEO Barry Callebaut | Annual Report / Letter to Shareholders Overview Business Highlights Sustainability Our People Financial Reports Governance Letter to Shareholders This year was rich in ground breaking Innovations. Confidently pursuing further expansion and In February 2020, Mona Lisa, our global decorations brand, new opportunities launched ‘Mona Lisa 3D Studio’, the world’s first The COVID-19 pandemic is a major unforeseen event personalized 3D printed chocolate at scale. Furthermore, we which impacted fiscal year 2019/20. This is why in July introduced the 100% dairy-free ‘M_lk Chocolate’.