Barry Callebaut (BARN) Investor update (Pre-recorded) summary

Strategic direction, vision, and growth priorities

• Launching the Focus for Growth plan to strengthen fundamentals, customer service, and execution, with targeted investments and a shift toward premium and solutions-driven segments.

• Aims to be the global leader in cocoa and chocolate, focusing on sustainability, innovation, and scaling specialties in high-growth segments.

• Five growth priorities: global accounts, regional food manufacturers, gourmet, specialties, and premium cocoa powder, with focus on 10 priority markets for investment.

• Empowering regional teams for local adaptation, prioritizing fewer initiatives, and co-creating the plan with diverse internal leadership.

• Maintaining an integrated business model, leveraging sourcing, R&D, and sustainability capabilities for competitive advantage.

Market trends, premiumization, and innovation

• Chocolate remains the top global flavor, driving growth in core and adjacent categories like ice cream, bakery, and energy bars.

• Market divergence: rising demand for both affordable/value solutions and premium products, with health and wellness trends influencing new product development.

• Accelerates premiumization through faster innovation cycles, co-creation, and R&D expertise, offering low sugar, high-protein, and high-flavanol solutions.

• Growth in adjacent applications, such as ice cream and bakery, outpaces traditional confectionery, with strong traction in these segments.

• Drives value optimization with premium cacao coatings and specialty products.

Execution, operational enablers, and investments

• Targeted investments in production flexibility, especially in North America and select emerging markets, to support chocolate and cocoa coatings.

• Enhancing planning, customer processes, and digitalization to improve service, on-time delivery, and agility.

• Strengthening financial resilience through flexible inventory-backed financing and disciplined capital allocation.

• Selective network enhancements and capacity upgrades in developed and fast-growth markets.

• Stronger value chain coordination and regional ownership to boost agility and execution.