Corbion Nv · EURONEXT:CRBN
Corbion Nv — H1 2021 Earnings Presentation
23 slides from Corbion Nv's earnings presentation, Aug 10, 2021
Slide 1: H1 2021 Results
H1 2021 RESULTS OLIVIER RIGAUD (CEO)/EDDY VAN 10/8/2021 RHEDE VAN DER KLOOT (CFO)
Slide 2: Key points H1 2021
H1 2021 RESULTS Key points H1 2021 • Organic sales growth core activities 16.4% • Sustainable Food Solutions - Organic sales growth 15.5% • Strong growth across segments. Improved pipeline & higher win rate driving growth • Lactic Acid & Specialties - Organic sales growth 12.6% • Growth in all segme
Slide 3: Sustainable Food Solutions sales growth acceleration
H1 2021 RESULTS Sustainable Food Solutions sales growth acceleration Processed meat US volumes y/y change Bakery US volumes y/y change excl. • End markets returning to normality excl. food service food service • As food service recovers, both US packaged/retail meat and % % bakery markets in retreat
Slide 4: Changing consumer behaviour – accelerated by COVID-19
H1 2021 RESULTS Changing consumer behaviour – accelerated by COVID-19 ‘Choiceful’ Health and Wellness Implications of Choice • Work-Life Balance – how we value time Slowing the “Speed of Life” • In-Office VS Remote Health and Wellness • Both Physical & Mental Health • 61% of global population plan t
Slide 5: Changing consumer behaviour – What it means for Corbion
H1 2021 RESULTS Changing consumer behaviour – What it means for Corbion • Freshness • Reduced waste Extended shelf life • Increased point of sale • Sustainability • Relevant for E-com • Flexibility for • Pantry stocking distribution • Immunity Clean Label and Simplified • Improved health through di
Slide 6: Progress on pathways in Sustainable Food Solutions
H1 2021 RESULTS – ADVANCE 2025 Progress on pathways in Sustainable Food Solutions Progress H1 2021 • Expanded in natural • Opened US • Unique food ferments • Opened US dairy lab • Add-on acquisition in mold inhibitors antioxidant lab pipeline developed Mexico bakery 6 10/8/2021
Slide 7: Sustainable Food Solutions
H1 2021 RESULTS Sustainable Food Solutions YTD YTD Q2 Q2 • Preservation € million 2021 2020 2021 2020 Net Sales 284.1 267.6 145.2 131.4 • Strong consumer demand for natural preservation Organic growth 15.5% 3.5% 18.7% -0.8% • New antioxidants lab in US now fully operational Adjusted EBITDA 39.7 47.0
Slide 8: Lactic Acid & Specialties
H1 2021 RESULTS Lactic Acid & Specialties YTD YTD Q2 Q2 • All segments grew in H1 2021 with exception of esters € million 2021 2020 2021 2020 Net Sales 151.0 141.4 76.5 64.7 • PLA and hygiene markets major drivers of lactic acid volumes Organic growth 12.6% 7.8% 25.2% 0.8% • Strong medical biopolyme
Slide 9: Incubator
H1 2021 RESULTS Incubator YTD YTD Q2 Q2 • AlgaPrime DHA sales driving growth € million 2021 2020 2021 2020 • Expanding into more aquafeed companies Net Sales 11.8 5.4 6.6 3.1 • Growth in pet food Organic growth 161.1% 36.7% 132.3% 17.2% • EBITDA losses reduced due to increased sales contribution Adj
Slide 10: Total Corbion PLA joint venture
H1 2021 RESULTS Total Corbion PLA joint venture YTD YTD Q2 Q2 • Sales increase through combination of price and volume growth, partly offset by negative currency effect € million 2021 2020 2021 2020 Net Sales 75.0 61.4 37.9 30.5 • Grandpuits plant front-end engineering design contract to NextChem EB
Slide 11: Non-core activities
H1 2021 RESULTS Non-core activities YTD YTD Q2 Q2 • Strong organic growth in Emulsifiers through market share gains € million 2021 2020 2021 2020 Net Sales 68.7 77.8 35.8 36.7 • Frozen dough divested in January 2021 Organic growth 10.4% -2.5% 18.5% -7.6% • € 18M sales • Bookprofit € 8.4M (2021) Adju
Slide 12: Profit and Loss: H1/Q2 2021
H1 2021 RESULTS Profit and Loss: H1/Q2 2021 YTD YTD Q2 Q2 € million 2021 2020 % 2021 2020 % Net Sales 515.6 492.2 4.8% 264.1 235.9 12.0% Adjusted EBITDA 77.1 83.8 -8.0% 33.2 39.4 -15.7% EBITDA % 15.0% 17.0% 12.6% 16.7% Adjusted Depreciation & Amortization (30.3) (30.9) -1.9% (15.5) (15.0) 3.3% Adjus
Slide 13: Sales Growth per segment in H1/Q2 2021
H1 2021 RESULTS Sales Growth per segment in H1/Q2 2021 Total growth at Acquisitions/ Net sales Total growth Currency constant Organic Price/Mix Volume (Divestments) currency YTD 2021 vs YTD 2020 Core 7.8% -8.6% 16.4% 0.0% 16.4% 2.3% 13.7% - Sustainable Food Solutions 6.2% -9.3% 15.5% 0.0% 15.5% 4.1%
Slide 14: EBITDA bridge YTD 2021 - Core
H1 2021 RESULTS EBITDA bridge YTD 2021 - Core EBITDA bridge YTD 2021 – Core activities € mln • Volume growth in all 3 business segments FTE increase 110.0 costs, 27.8 Other, € 9.2M • Pricing and mix 100.0 € 12.9M 4.3 • Negative mix was slightly down as lactic acid sales to PLA JV increased 90.0 80.0
Slide 15: Net debt bridge H1 2021
H1 2021 RESULTS Net debt bridge H1 2021 1.7x 2.1x 303.3 342.4 55.6 40.0 8.3 20.3 52.8 4.1 9.1 11.6 33.0 15 10/8/2021
Slide 16: Free Cash Flow
H1 2021 RESULTS Free Cash Flow 150 Rolling 12 months 100 118 120 114 109 50 101 48 100 105 107 97 26 32 31 24 12 10 € mln 0 5 -1 -52 -77 -65 -88 -80 -50 -94 -106 -105 -114 -100 -150 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Operating cash flow Investment cash flow Free
Slide 17: Investments
H1 2021 RESULTS Investments • Total capex H1 2021 € 51.1M Investments € mln • Recurring capex € 38.2M 120 • New Lactic Acid plant (Thailand) € 12.9M 36 • Recurring capex includes 53 10 80 61 • Lactic acid debottlenecking € 7.6M • ERP investment € 3.3M 11 13 40 68 76 80 • Acquisitions 60 56 60 46 • G
Slide 18: Working capital
H1 2021 RESULTS Working capital 120 74 77 82 77 68 80 68 100 47 47 44 50 80 49 43 45 60 40 Days 63 63 59 62 60 61 56 20 0 -28 -32 -27 -29 -20 -36 -34 -37 -40 -60 H1 2018 FY 2018 H1 2019 FY 2019 H1 2020 FY 2020 H1 2021 Inventory days Trade receivables (DSO) Trade payables (DPO) 18 10/8/2021
Slide 19: Input prices have substantially increased
H1 2021 RESULTS – RAW MATERIALS & FREIGHT Input prices have substantially increased Sugar NY11 Soybean Oil • Broad based input price inflation $c/lb $c/lb 20 78 68 • Minority of input costs can be price-hedged 18 16 58 • Mainly carbohydrates, fats/oils, and energy (1/3rd of 14 48 38 total raw materi
Slide 20: Firm pricing actions in progress
H1 2021 RESULTS – RAW MATERIALS & FREIGHT Firm pricing actions in progress Additional raw materials, energy, packaging, freight • Expect to pass on higher input costs increase € million 2021 vs 2020 2022 vs 2021 Cumulative • In aggregate, input costs in 2021 and 2022 rise by € 80 - 90M Core 30 20 -
Slide 21: Outlook FY 2021
H1 2021 RESULTS Outlook FY 2021 • Core business organic sales growth 12-15% guidance range (was: 7-10%) • Benefiting from increased SFS pipeline combined with high win rate • PLA joint venture ramp-up progressing well • Increased confidence in algae-based omega-3 business development • Majority volu
Slide 22: Contact
Contact email@corbion.com Jeroen.van.Harten@corbion.com www.corbion.com +316123456789 +31205906293
Slide 23: EBITDA bridge Q2 2021 - Core
H1 2021 RESULTS EBITDA bridge Q2 2021 - Core FTE increase costs, € 5.2M Other, € 12.1M 23 10/8/2021