Slide 1: H1 2017 Results
H1 2017 RESULTS TJERK DE RUITER, EDDY VAN RHEDE 9/8/2017 VAN DER KLOOT
Slide 2: Highlights H1 2017 results
Highlights H1 2017 results • Organic net sales decline of 0.9%, mostly volume driven • Net sales increase of 1.4% • Food: Meat & Other doing well; Bakery declining • Biochemicals: Strong performance in Agrochemicals & Electronics, offset by Animal Health • EBITDA excluding one-off items EBITDA € 88.
Slide 3: Potential acquisition of most of TerraVia assets (1/2)
Potential acquisition of most of TerraVia assets (1/2) • Corbion has bid $20M for substantially all of TerraVia’s assets • Innovative microalgae fermentation company with extensive patent portfolio • Production of high-value ingredients for food, feed, and personal care • Ties in with Corbion via ou
Slide 4: Potential acquisition of most of TerraVia assets (2/2)
Potential acquisition of most of TerraVia assets (2/2) Assets in scope • 50.1% Equity share in SB Oils JV with Bunge (49.9%): Brazil production plant • US based assets: • People (mainly R&D, business development) • Patents: 70+ patents • Demo plant (Peora, IL) including land • Pilot/Lab facilities (
Slide 5: PLA update
PLA update • 50/50 Joint-venture with Total established on 2nd March 2017 • All material permits obtained, on schedule • Construction on track • Tank installation completed • 95% of piping completed 5 © 9/8/2017
Slide 6: H1 2017 Financial Results
H1 2017 Financial Results 6 © 9/8/2017
Slide 7: Profit & Loss: H1 2017 and Q2
Profit & Loss: H1 2017 and Q2 • EBITDA excl. one-off items -1.7 % in H1 2017 € million YTD YTD Q2 Q2 through: 2017 2016 % 2017 2016 % • Lower volumes Net Sales 461.9 455.7 1.4% 232.0 227.4 2.0% EBITDA excl. one-off items 88.3 89.8 -1.7% 40.5 46.1 -12.1% • Price/mix improvements EBITDA % 19.1% 19.7%
Slide 8: Sales Growth per segment in H1/Q2 2017
Sales Growth per segment in H1/Q2 2017 Total growth Total Acquisitions/ Currency at constant Organic Price/Mix Volume growth Divestments currency YTD 2017 vs 2016 Biobased Ingredients 1.2% 3.1% -1.9% -0.8% -1.1% 1.6% -2.7% - Food -0.1% 3.4% -3.5% -1.1% -2.4% 1.9% -4.3% - Biochemicals 5.4% 2.0% 3.4%
Slide 9: Biobased Ingredients
Biobased Ingredients YTD YTD Q2 Q2 € million 2017 2016 2017 2016 • Organic sales growth in H1 2017: - 1.1% Net Sales 449.9 444.5 223.9 222.1 Organic growth -1.1% 0.5% -0.7% -0.8% • EBITDA margin decrease to 20.3% (H1 EBITDA excl. one-off items 91.2 92.1 41.8 48.5 2016: 20.7%) Margin 20.3% 20.7% 18.7
Slide 10: Business Segment Food
Business Segment Food YTD YTD Q2 Q2 H1 2017 key items € million 2017 2016 2017 2016 • Organic sales growth of -2.4% Net Sales 336.4 336.8 169.0 168.7 Organic growth -2.4% 0.4% -1.4% -2.7% • Margin decrease from higher input costs, lower volumes partly offset by EBITDA excl. one-off items 71.7 72.6 3
Slide 11: Business Segment Biochemicals
Business Segment Biochemicals YTD YTD Q2 Q2 H1 2017 key items € million 2017 2016 2017 2016 Net Sales 113.5 107.7 54.9 53.4 • Organic sales growth of 3.4% Organic growth 3.4% 0.9% 1.2% 5.8% • Margin decline from higher input costs partly offset by better business EBITDA excl. one-off items 29.1 28.4
Slide 12: Biobased Innovations
Biobased Innovations H1 2017 key items YTD YTD Q2 Q2 € million 2017 2016 2017 2016 • Lactide/PLA sales no longer Net Sales 12.0 11.2 8.1 5.3 reported in Biobased Organic growth 3.4% 57.7% 46.8% 58.9% Innovations from March onwards EBITDA excl. one-off items (2.9) (2.3) (1.3) (2.4) Margin -24.2% -20.
Slide 13: EBITDA bridge H1 2017
EBITDA bridge H1 2017 100 6.0 90 3.9 3.6 • Organic decline mostly due to -0.6 80 -5.4 -3.0 lower volumes 70 • Main price/mix components: Biobased Ingredients 60 • Higher input costs 50 89.8 94.3 • Business mix improvement in 88.3 40 Food and Biochemicals 30 • Cost level including general 20 inflatio
Slide 14: Net debt bridge H1 2017
Net debt bridge H1 2017 12.8 0.0 • Net debt/EBITDA ratio 69.1 -15.0 increased to 0.9x (end 2016: -40.0 0.6x) 98.0 -33.3 -80.0 -6.4 157.5 -24.9 • Net debt position of € 157.5M 0.6x -120.0 per end of H1 2017 10.5 -160.0 -59.7 -12.6 -2.2 0.9X • Operating Working Capital increased by € 33.3M -200.0 • Di
Slide 15: Free Cash Flow
Free Cash Flow 200 Rolling 12 months 150 100 98 174 55 152 74 126 68 50 110 75 € mln 57 67 34 24 0 -7 -35 -51 -55 -69 -58 -87 -30 -74 -76 -78 -50 -100 -150 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Operating cash flow Investment cash flow Free cash flow 15 © 9/8/2017
Slide 16: Operating Working capital
Operating Working capital Days* +3% 120 69 70 69 100 59 63 63 72 80 43 42 44 43 39 38 44 60 40 50 58 55 52 56 55 51 20 0 -31 -27 -28 -30 -23 -20 -34 -32 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY 2016 H1 2017 Inventory days Trade receivables (DSO) Trade payables (DPO) • Operating Working Capit
Slide 17: Capital Expenditures
Capital Expenditures 80 • H1 2017 Capex: EUR 21.2M 70 € 62.5M € 61.7M 60 7.6 € 50.0M 20.2 50 15.0 • Major capex projects in H1 2017 40 30 54.1 € 21.2M • PGME emulsifier capability 20 42.3 4.2 10 35.0 17.0 • Capex related to PLA JV prior 0 to JV inception 2010 2011 2012 2013 2014 2015 2016 2017 Bioba
Slide 18: Outlook FY 2017
Outlook FY 2017 • Biobased Ingredients sales growth below 2-4% range (unchanged) • Organic growth in Biobased Ingredients higher in H2 2017 compared to H1 • EBITDA before one-off items slightly below 2016 (€ 170.1M) (unchanged) • Adverse effect on EBITDA margin from higher input costs (cane sugar) •
Slide 19: Corbion
> Corbion
Slide 20: EBITDA bridge Q2 2017
EBITDA bridge Q2 2017 50 45 -2.5 1.1 0.7 40 2.1 -4.6 35 -1.7 30 Biobased Ingredients 25 46.1 20 40.5 41.2 15 10 5 0 20 © 9/8/2017