Slide 1: HY/Q2 2023 Results
HY/Q2 2023 RESULTS OLIVIER RIGAUD (CEO) 10/08/2023 EDDY VAN RHEDE VAN DER KLOOT (CFO)
Slide 2: Corbion results H1 2023
H1 2023 RESULTS Corbion results H1 2023 Olivier Rigaud Eddy van Rhede van der Kloot CEO CFO • Business performance • Financial performance • Outlook 2 10/08/2023
Slide 3: Business performance
H1 2023 RESULTS Business performance Olivier Rigaud CEO 3 10/08/2023
Slide 4: H1 2023 Highlights
H1 2023 RESULTS H1 2023 Highlights • Organic sales growth core activities of 7.9% driven by growth of all business units with high growth in Algae Ingredients • Adjusted EBITDA: € 96.8M (13.1% margin), of which organic Adjusted EBITDA growth core activities of 15.7% • Volume decline in SFS and LAS c
Slide 5: Operating climate
H1 2023 RESULTS Operating climate Customer destocking and softer macro-economic climate • Significant customer destocking following supply chain normalization • Volume decline in food markets across regions and categories • Slowdown in some biochemical markets, like semiconductors and agrochemicals
Slide 6: Sustainable Food Solutions
H1 RESULTS Sustainable Food Solutions Business environment • Customer destocking and soft end consumer markets • Customer innovation activity remains strong • Functional systems more resilient Growth initiatives • Peoria plant expansion completed for Natural Mold Inhibitors • Several key accounts ex
Slide 7: Lactic Acid and Specialties
H1 RESULTS Lactic Acid and Specialties Business environment • Temporary slowdown in semiconductor and agrochemical markets • Volume impacted by lower intake of PLA JV • Biomedical polymers positive outlook Growth initiatives • Biomedical expansion to support drug delivery momentum • FDA approval dru
Slide 8: Flagship circular 125kt lactic acid plant construction completed end 2023
H1 RESULTS Flagship circular 125kt lactic acid plant Lowest cost construction completed end 2023 technology available Cost per Plant start ton up early 2024 Corbion circular plant Competitors Corbion Utilities commissioning ongoing 19% lower Expecting positive carbon EBITDA footprint* contribution a
Slide 9: PLA
H1 RESULTS PLA Business environment • Slow demand leading to decision not to pursue PLA2 in Europe • Current plant offers substantial low cost capacity expansion options without immediate financing need Growth initiatives • Early sign of recovery visible • China piloting new PLA initiatives • Buildi
Slide 10: Algae Ingredients
H1 RESULTS Algae Ingredients Business environment • Growing omega-3 demand and structural fish oil scarcity leading to higher prices Growth initiatives • Orindiuva plant debottlenecking and mix upgrade for oil extraction • Healthy pipeline development in pet and human nutrition Picture flex workshop
Slide 11: Financial performance
H1 2023 RESULTS Financial performance Eddy van Rhede van der Kloot CFO 11 10/08/2023
Slide 12: Profit and Loss
H1 2023 RESULTS Profit and Loss H1 H1 Q2 Q2 € million 2023 2022 % 2023 2022 % Sales 738.0 687.4 7.4% 378.4 367.3 3.0% Adjusted EBITDA 96.8 89.9 7.7% 48.4 49.9 -3.0% Adjusted EBITDA % 13.1% 13.1% 12.8% 13.6% Adjusted Depreciation & Amortization (40.3) (36.3) (20.1) (19.0) Adjustments (2.9) 5.5 (1.6)
Slide 13: Sustainable Food Solutions
H1 2023 RESULTS Sustainable Food Solutions € million H1 2023 H1 2022 Q2 2023 Q2 2022 Organic Sales growth of 4.7% Sales 385.5 365.8 194.3 195.0 • Positive price impact +11.1% to compensate for higher input costs Organic growth 4.7% 18.4% 1.4% 21.2% • Volume/mix -6.4% driven by customer destocking, s
Slide 14: Lactic Acid & Specialties
H1 2023 RESULTS Lactic Acid & Specialties € million H1 2023 H1 2022 Q2 2023 Q2 2022 Organic Sales growth of 2.2% Sales 206.7 201.8 100.7 106.0 • Positive price impact +11.6% to compensate for higher input costs Organic growth 2.2% 26.5% -3.5% 29.4% • Volume/mix -9.4% driven by lower lactic acid supp
Slide 15: Algae Ingredients
H1 2023 RESULTS Algae Ingredients € million H1 2023 H1 2022 Q2 2023 Q2 2022 Organic Sales growth of 102.9% Sales 49.5 24.1 34.2 14.5 • Driven by both strong volume/mix growth +69.3% and Organic growth 102.9% 87.3% 136.6% 98.5% sustainable price increases +33.6% in aquaculture • Continued strong grow
Slide 16: Incubator
H1 2023 RESULTS Incubator € million H1 2023 H1 2022 Q2 2023 Q2 2022 • Currently no Sales reported following carve-out Algae Ingredients as Adjusted EBITDA (5.0) (4.2) (2.4) (2.2) new reporting segment as of Q4 2022 % of core sales -0.8% -0.7% -0.7% -0.7% • The Adjusted EBITDA of € -5.0 million refle
Slide 17: TotalEnergies Corbion joint venture
H1 2023 RESULTS TotalEnergies Corbion joint venture € million * H1 2023 H1 2022 Q2 2023 Q2 2022 Organic Sales declined by 37.4% Sales 58.2 91.9 32.5 43.8 • Weakness of PLA market since mid 2022 EBITDA 10.0 30.1 6.1 14.4 • Early signs of recovery visible EBITDA margin 17.2% 32.7% 18.8% 33.0% • Market
Slide 18: Non-core activities
H1 2023 RESULTS Non-core activities € million H1 2023 H1 2022 Q2 2023 Q2 2022 Sales growth of non-core (emulsifiers) flat Sales 96.3 95.7 49.2 51.8 • Organic sales growth -0.6%, driven by price increases being offset Organic growth -0.6% 26.3% -3.3% 28.5% by negative volume/mix Adjusted EBITDA margi
Slide 19: Outlook
H1 2023 RESULTS Outlook Olivier Rigaud CEO 19 10/08/2023
Slide 20: 2023 Outlook
H1 2023 RESULTS 2023 Outlook Organic sales growth CORE Organic EBITDA growth CORE Financial discipline Mid-single digit growth Adjusted EBITDA growth CORE within Positive free cash flow from Q2 2023 15-20 % range onwards • Volume/mix growth anticipated to • Ongoing cost reduction initiatives • Stron
Slide 21: Annex
H1 2023 RESULTS Annex 21 10/08/2023
Slide 22: Sales and Adjusted EBITDA: H1/Q2 2023
H1 2023 RESULTS Sales and Adjusted EBITDA: H1/Q2 2023 € million H1 2023 H1 2022 Q2 2023 Q2 2022 Growth H1 2023 Sales Core 641.7 591.7 329.2 315.5 8.5% - Sustainable Food Solutions 385.5 365.8 194.3 195.0 5.4% - Lactic Acid & Specialties 206.7 201.8 100.7 106.0 2.4% - Algae Ingredients 49.5 24.1 34.2
Slide 23: Sales growth per segment in H1/Q2 2023
H1 2023 RESULTS Sales growth per segment in H1/Q2 2023 Acquisitions/ Sales Volume/Mix Price Organic Currency Total growth (Divestments) H1 2023 vs H1 2022 Core -4.3% 12.2% 7.9% 0.6% 0.0% 8.5% - Sustainable Food Solutions -6.4% 11.1% 4.7% 0.7% 0.0% 5.4% - Lactic Acid & Specialties -9.4% 11.6% 2.2% 0.
Slide 24: Core Adjusted EBITDA bridge H1 2023
H1 2023 RESULTS Core Adjusted EBITDA bridge H1 2023 150 100 14.8 5.2 26.6 € mln 0.0 50 82.2 82.0 75.6 75.6 0 Adj. EBITDA Vol / mix / Fixed costs Currency Acquisitions Adj. EBITDA Non-core Core H1 pricing impact Core H1 2022 2023 24 10/08/2022
Slide 25: Core Adjusted EBITDA bridge Q2 2023
H1 2023 RESULTS Core Adjusted EBITDA bridge Q2 2023 3.5 9.0 5.8 0.0 40.6 40.9 25 10/08/2022
Slide 26: Covenant net debt bridge H1 2023
H1 2023 RESULTS Covenant net debt bridge H1 2023 • Net debt position H1 2023: € 667.0 million (excl. subordinated loans). • Covenant net debt/covenant EBITDA increased from 3.0x (year-end 2022) to 3.4x (June 2023): 601.5 • Dividend payment of € 33 million 667.0 • Positive Free Cash Flows in Q2 • Inv
Slide 27: Investments
H1 2023 RESULTS Investments • Total Capex investments H1 2023 € 72M • Recurring capex € 39M (including expansion projects) • New lactic acid plant (Thailand) € 33M • Expansion capex includes • Lactic acid expansion/debottlenecking € 9M • Algae (Orindiúva, Brazil) expansion/flexibility € 5M • Natural
Slide 28: Free Cash Flow
H1 2023 RESULTS Free Cash Flow • Free Cash Flows (FCF) improving since H1 2022 with positive quarterly FCF in Q2 2023 150 Rolling 12 months Free Cash Flow per quarter 100 61 26 8 13 105 114 107 109 -5 50 100 97 -35 77 -57 -56 26 32 31 -59 39 -49 -43 12 10 22 25 0 -1 -63 Q3-22 Q4-22 Q1-23 Q2-23 -65 €
Slide 29: Working capital (days)
H1 2023 RESULTS Working capital (days) • Decreased Inventory days versus Q4 2022: • Successful inventory reduction program • Improved demand forecast • Optimization safety stock levels • Trade receivables days stable • Trade payables reducing , as input costs of recent purchases are coming down (res
Slide 30: Investor relations
Investor relations Peter.Kazius@corbion.com www.corbion.com +31 20 590 6242