Barry Callebaut 9-month key sales figures 2010/11 July 2011 Agenda Company and Industry Overview First 9 months highlights Outlook July 2011 Barry Callebaut 9 months key sales figures 2 Barry Callebaut is present in all of the stages of the chocolate industry value chain Cocoa Cocoa beans Plantations 80% Cocoa liquor ~54% ~46% Cocoa powder Cocoa butter BC core activity + Sugar, Milk, others + Sugar, Milk, + Sugar, Milk, fats, others others Powder mixes Compound/Fillings Chocolate couverture Customers: Food Manufactures Chocolatiers, Bakeries, Vending Dist. Etc July 2011 Barry Callebaut 9 months key sales figures 3 Barry Callebaut at a glance FY-2010 Sales Volume by Region FY-2010 Sales Volume by Product Group Food Service Global Sourcing & / Retail Cocoa Customers 16% 27% Consumer Products 10% Asia Europe Gourmet 4% 58% & Specialties 10% Food Cocoa Manufacturers 16% 64% Americas 22% Industrial Customers 73% FY-2010 Sales Volume: 1,3 mn tonnes FY-2010 Sales: CHF 5,213mn FY-2010 EBIT: CHF 370.4 mn FY-2010 Net Profit: CHF 251.7 mn July 2011 Barry Callebaut 9 months key sales figures 4 Barry Callebaut is the market leader in the open market Global Industrial Chocolate market in 2009 = 5,400,000 tonnes* (Long-term average annual market growth of approx 2-3%) Open market Integrated market Competitors Big 4 chocolate Others players 40% 49% 51% 80% Outsourced (long-term volumes) *BC estimates July 2011 Barry Callebaut 9 months key sales figures 5 Global leader in chocolate manufacturing Barry Callebaut is one of the of the top three cocoa grinders and the largest manufacturer of industrial chocolate, with estimated market share of 40% of sales volumes in the open market for industrial chocolate Cocoa Grinders Open Market for Chocolate ADM Barry Callebaut Kraft/ Cadbury Barry Callebaut Mars Cargill Nestlé Petra Foods Hershey Blommer Cargill Kraft/Cadbury Blommer ADM Nestlé Lindt Cémoi Ferrero Ferrero Other players 0 100 200 300 400 500 600 700 -100 100 300 500 700 900 1100 Volume ('000 MT) Sales Volume ('000 MT) Source: Barry Callebaut 2009/10 estimates (both charts). July 2011 Barry Callebaut 9 months key sales figures 6 Our Strategy “Heart and engine of the chocolate industry” Vision Chocolate expert and business partner of choice Number one chocolate company Expansion Sustainable, Strategic profitable pillars Innovation growth Cost leadership July 2011 Barry Callebaut 9 months key sales figures 7 Expansion Early movers in emerging markets Ongoing selected investments in emerging markets are paying off Emerging markets in % of total sales volume (6 months figures) 2010/11 growth Poland: Line extension 21% +12.9% completed 20% 13% 17% 12% 14% 6% 13% +38.1% Mexico: Volume increased, 10% 2% 9% gained market share with local customers, growth +19% Russia: Volume increased, +21% +1.5% 88% 84% 81% 74% 70% 66% China: increased market share with local food manufacturers HY Feb 2006 HY Feb 2007 HY Feb 2008 HY Feb 2009 HY Feb 2010 HY Feb 2011 Emerging markets Long-term Outsourcing Mature Markets Agreements/Partnerships July 2011 Barry Callebaut 9 months key sales figures 8 Chocolate consumption is linked to income per capita, growth to come from emerging markets 6.0 EU Russia 5.0 Oceania Poland USA (kg) 2010 (kg) Eastern Europe 4.0 capita Argentina per 3.0 2.0 Brazil consumption 1.0 Aisa-Pacific World Peru Mexico Middle East Indonesia Peru South Africa Malaysia Ecuador 0.0 China India Thailand Chocolate 0 5'000 10'000 15'000 20'000 25'000 30'000 35'000 40'000 45'000 50'000 -1.0 Annual income per capita 2010 - USD Source: Worldbank, Euromonitor July 2011 Barry Callebaut 9 months key sales figures 9 Expansion Outsourcing and Strategic Partner of choice Nestlé (February 2007) Barry Callebaut to acquire 100,000 MT production capacity from Nestlé in Italy and France Long term agreement for the supply of ca. 70,000 MT of chocolate and the production of some Nestlé consumer products Hershey (April 2007) Long-term supply agreement of min. 80,000 MT of chocolate and finished products to Hershey to make Barry Callebaut the No.1 industrial chocolate maker in the United States. Total investment USD 50 mn May 2011 Volume extension on top of original volume for long-term. Investment of USD 15 mn Cadbury Schweppes (June 2007) Barry Callebaut to double supply volumes to Cadbury Schweppes through the supply of 14,000 MT of incremental cocoa liquor and liquid chocolate to their production facility in Poland Increased cooperation in other areas such as sourcing, innovation and social responsibility Morinaga ( September 2007) 10-year supply agreement for 9,000 MT a year – doubling Barry Callebaut‟s sales volumes in Japan Kraft Foods (September 2010) Barry Callebaut to become Kraft Foods‟ key global cocoa and industrial chocolate supplier under a long-term global master product agreement. Investment of USD 65 mn Green Mountain Coffee Roasters (Oct 2010) New long-term contract to serve cocoa based products to the Beverages business in North America out of our Swedish production site Chocolates Turin (June 2011) Long-term contract to supply all industrial chocolate to Turin in Mexico. Investment USD 30 mio. Exclusive distribution agreement for our global Gourmet brands. July 2011 Barry Callebaut 9 months key sales figures 10 Expansion World‟s largest supplier of Gourmet & Specialties chocolate for artisanal customers Gourmet global market and BC presence Market Highly fragmented market with more Total= >CHF 3bn than 100‟000 end-customers Chocolate products Adjacent products CHF ~2bn sales CHF >1bn sales Three main segments: 100% Confectioners: artisanal chocolate shops 80 BAPA: bakery and pastry shops HORECA: restaurants, hotels and Adjacent >25 >products: 30 caterers 60 >10 competitors competitors competitors Nut based fillings, Main competitors: Valrhona, Felchlin, > 30competitors > 40 20competitors > decorations, Belcolade and many local players frozen pastry 24% BC global MS 20 BC Key trends Consolidation (distribution, end- customers) Western Eastern Americas Asia Worldwide Europe Europe Differentiation BC Market share >30% >10% >15% >15% <5% Convenience July 2011 Barry Callebaut 9 months key sales figures 11 Expansion Developments of our 6 strategic actions Gourmet & Specialties Products 1. Sharpen focus on two global brands Cacao Barry and Callebaut Centralization of brand management completed Regional brand Managers put in place in U.S. and Western Europe 2. Move from a product to a segment focus Decorations Introduction of segment-marketing in progress (Confectioners) 3. Increase adjacent product offering Expanded range will soon be launched (e.g. decorations) 4. Accelerate geographic expansion Accelerated growth efforts in Asia Fillings 5. Growth through acquisitions (BAPA) On-going discussions with potential targets 6. Dedicated Gourmet organization with own P&L / “independent but interdependent” New organizational principles implemented in Western Europe and North America Frozen (Foodservice) July 2011 Barry Callebaut 9 months key sales figures 12 Innovation Recognized innovation leader with focus on market trends Sustainabilit Cost Focus Indulgence Permissibility Regulation Sustainabilityy & Transparenc Same Increasing Demand for Chocolate Qualityy quality, interest for healthy alternatives Partner lower costs inclusions, alter- with fewer Program texture ele- natives calories (QPP) Growing ments, interest for deco- All natural, Rebalanced UTZ, compounds rations no additives chocolate Rainforest Market and fillings Alliance, Trends Probiotics Fair Trade, Organic, Fair for Life 100% dairy- QPP Controlled First Innovations 980 recipe free chocolate for fermentation chocolate to market optimization alternative to internatio- for premium sweetened in FY 2009/10 projects milk nal premium products with Stevia chocolate products July 2011 Barry Callebaut 9 months key sales figures 13 Cost Leadership Barry Callebaut achieves cost leadership along the value chain Raw Operational set-up Logistics & Sales & Materials & Manufacturing Supply Chain Distribution Benefits from Low factory costs Optimal supply Close partnership sourcing & per tonne chain network with customers processing in origin countries Centralised Dedicated factory Minimal logistics Just-in-time sourcing of all approach costs delivery raw materials and Size and Complementary Proximity to purchasing power economies of distribution customers Physical presence scale network in Network of Europe and USA Strong direct Lean production brokers, sourcing activities processes Integrated distributors and forecasting and direct sales force Raw material Optimised use of planning optimisation production Customer capacities satisfaction July 2011 Barry Callebaut 9 months key sales figures 14 Truly global manufacturing footprint with 43 production facilities in 26 countries worldwide Thimister, Belgium Eupen, Belgium Chekhov, Russia Lebbeke-Wieze, Belgium Heule-Kortrijk, Belgium Nuth, The Netherlands Zundert, The Netherlands Banbury, UK St. Albans, VT, US St Helens, UK Kagerod, Sweden Chester, UK Pennsauken, NJ, US St. Hyacinthe, Canada Lodz, Poland Eddystone, PA, US Louviers, France Robinson, IL, US Meulan, France Dijon, France Berlin, Germany American Canyon, CA, US Dübendorf, Switzerland Saalfeld, Germany Caslano, Switzerland Norderstedt, Germany Tsukaguchi, Japan Verbania-Intra, Italy Zuzhou, China San Sisto, Italy Monterray, Mexico Abidjan Zone, Ivory Coast Vic Gurb, Spain Alicante, Spain San Pedro, Ivory Coast Port Klang, Malaysia Douala