Slide 1: FY/Q4 2020 Results
FY/Q4 2020 RESULTS OLIVIER RIGAUD (CEO) / EDDY VAN 5/3/2021 RHEDE VAN DER KLOOT (CFO)
Slide 2: Highlights FY 2020
Highlights FY 2020 Financial highlights • Organic sales growth core activities 7.0% • SFS: Organic growth 6.8%. Preservation very strong • LA&S: Organic growth 6.2%. Growth in all segments except Biopolymers • Incubator: Organic growth 33.9%. Increasing traction with algae based omega-3 • Adjusted E
Slide 3: Advance 2025: Focus, Align, and Balance
Advance 2025 Focus, Align, and Balance Focus Focus on higher growth core activities Clear portfolio choices based on strategic fit Align 3 business segments • Sustainable Food Solutions – Solution strategy • Lactic Acid & Specialties – Product strategy • Incubator Balance Resource allocation intensi
Slide 4: Progress growth initiatives Sustainable Food Solutions
Advance 2025 Progress growth initiatives Sustainable Food Solutions Investing in close adjacencies • Natural antioxidants • Natural mold inhibitors • Food ferments • Dairy stabilizers Upgrading our Go To Market capabilities • New applications labs in China and Singapore • New application labs for Da
Slide 5: Progress growth initiatives Lactic Acid and Specialties
Advance 2025 Progress growth initiatives Lactic Acid and Specialties Lactic acid Incremental lactic acid capacity (kt) Corbion (2018-2027) • Debottlenecking program across organization of ? 50kt by 2022 for est. € 65M 125 • Build new gypsum-free plant Thailand by 2023 of +175kt 125kt for est. $ 190M
Slide 6: Progress growth initiatives Incubator
Advance 2025 Progress growth initiatives Incubator Algae ingredients • Breakthrough development on new algae strain in 2020 • Upgrading Go To Market capabilities and distribution network Open Innovation • Investment in Shift Invest III and ECBF funds SHIFT INVEST RAISES € 70 MILLION FOR THE LARGEST
Slide 7: PLA developments
PLA developments PLA market breakdown by category • Market growth continued throughout 2020 Other, 14% • Healthy demand supports PLA price levels Food Serviceware, 35% Non-Woven • New entrants emerging (mostly China based) fibers, 15% 2021 priorities for Total Corbion PLA joint venture (50/50) Films
Slide 8: Sustainability: essential to our Advance 2025 strategy
Advance 2025 Sustainability: essential to our Advance 2025 strategy Sustainability and Advance 2025 • Sustainability contribution essential to Corbion portfolio selection • 61% of total revenues contributed to SDG 2, 3, or 12 (target: >80% by 2030) • 100% of our innovation projects contribute to SDG
Slide 9: Progress Advance 2025 Sustainable Development Goals
Progress Advance 2025 Sustainable Development Goals Preserving food and food production 2019 2020 2025 2030 1 % of cane sugar verified responsibly sourced - 66% 100% 100% 1 % of verified deforestation-free key agricultural raw materials - 83% 100% 100% % of products sold contributing to Preserving f
Slide 10: Profit and Loss: FY/Q4 2020
Profit and Loss: FY/Q4 2020 YTD YTD Q4 Q4 € million 2020 2019 % 2020 2019 % Net Sales 986.5 976.4 1.0% 245.3 247.5 -0.9% Adjusted EBITDA 158.8 145.9 8.8% 30.4 33.8 -10.1% EBITDA % 16.1% 14.9% 12.4% 13.7% Adjusted Depreciation & Amortization (60.3) (60.9) -1.0% (14.5) (17.2) -15.7% Adjustments 5.6 (2
Slide 11: COVID-19 EBITDA impact
COVID-19 EBITDA impact Impact on added value: est. € -1M (-) Food service-related solutions (-) Biopolymers (postponed elective surgeries) (-) Higher logistics costs (sea container shortage) (+) Food retail-related solutions (+) Hand sanitation Impact on operating costs: est. € +5.5M (+) Lower trave
Slide 12: Sales Growth per segment in FY/Q4 2020
Sales Growth per segment in FY/Q4 2020 Total growth at Acquisitions/ Net sales Total growth Currency constant (Divestments Organic Price/Mix Volume currency ) YTD 2020 vs YTD 2019 Core 3.5% -4.3% 7.8% 0.8% 7.0% -1.5% 8.6% - Sustainable Food Solutions 3.1% -4.9% 8.0% 1.2% 6.8% -0.1% 6.9% - Lactic Aci
Slide 13: Sustainable Food Solutions
Sustainable Food Solutions YTD YTD Q4 Q4 • Preservation: Strong consumer € million 2020 2019 2020 2019 demand for natural preservation, Net sales 545.8 529.4 140.1 137.9 both in meat and bakery markets Organic growth 6.8% 11.8% Adjusted EBITDA 92.7 89.1 19.4 22.2 • Functional Systems Volatile H1 due
Slide 14: Lactic Acid & Specialties
Lactic Acid & Specialties YTD YTD Q4 Q4 • All segments grew in 2020 € million 2020 2019 2020 2019 with exception of Net sales 275.8 263.8 64.4 65.4 Biopolymers Organic growth 6.2% 4.0% Adjusted EBITDA 61.0 56.7 11.1 12.1 Adjusted EBITDA % 22.1% 21.5% 17.2% 18.5% • PLA major driver of higher lactic a
Slide 15: Incubator
Incubator Incubator YTD YTD Q4 Q4 • Sales growth driven by higher € million 2020 2019 2020 2019 AlgaPrime DHA (omega-3 Net sales 13.4 13.3 4.5 2.4 sales) Organic growth 33.9% 162.5% • Significant reduction in VCP Adjusted EBITDA (18.4) (24.3) (5.2) (6.0) realized in early 2020… Adjusted EBITDA % -13
Slide 16: Total Corbion PLA joint venture
Total Corbion PLA joint venture Total Corbion PLA jv* YTD YTD Q4 Q4 • Sales increase through combination of € million 2020 2019 2020 2019 price and volume growth, partly offset Net Sales 129.3 75.6 33.2 21.1 by negative currency effect EBITDA 47.7 8.1 12.6 4.1 EBITDA % 36.9% 10.7% 38.0% 19.4% • EBIT
Slide 17: Non-core activities
Non-core activities Non-core activities YTD YTD Q4 Q4 • Slight organic sales decline in 2020 € million 2020 2019 2020 2019 Net sales 151.5 169.9 36.3 41.8 Organic growth -1.1% 1.1% • Frozen dough divested in January 2021 Adjusted EBITDA 23.5 24.4 5.1 5.5 • € 18M sales in 2020 Adjusted EBITDA % 15.5%
Slide 18: EBITDA bridge YTD 2020
EBITDA bridge YTD 2020 180 33.4 • Volume growth in all 3 business 160 segments 2.7 140 0.5 12.7 4.6 • Mix slightly down as lactic acid sales 120 to Total Corbion joint venture 100 increased and Biopolymers sales decreased € mln 80 135.3 60 121.5 • Costs increase mostly due to salary 40 inflation, in
Slide 19: Net debt bridge FY 2020
Net debt bridge FY 2020 2.0x 1.7x 303.3 135.6 284.2 14.4 12.1 19.9 88.9 12.0 33.0 19 © 5/3/2020
Slide 20: Free Cash Flow
Free Cash Flow 150 Rolling 12 months 100 118 120 114 105 107 109 50 101 48 100 32 24 26 12 10 € mln 0 5 -1 -52 -80 -77 -94 -88 -50 -106 -105 -114 -100 -150 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 Operating cash flow Investment cash flow Free cash flow 20 © 5/3/2020
Slide 21: Operating Working Capital
Operating Working Capital 120 74 77 77 68 80 68 69 100 72 47 47 44 80 49 43 45 46 44 60 40 Days 63 63 59 62 60 51 55 56 20 0 -23 -28 -27 -33 -36 -32 -34 -37 -20 -40 -60 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019 FY 2019 H1 2020 FY 2020 Inventory days Trade receivables (DSO) Trade payables (DPO) 21 © 5/
Slide 22: Investments
Investments €M 120 Total capex 2020 € 89.7M 100 • Recurring capex €79.9M • New Lactic Acid plant (Thailand) 80 € 9.8M 60 Recurring capex includes 40 • ERP investment € 11.3M • Lactic acid debottlenecking 20 € 13.1M 0 2014 2015 2016 2017 2018 2019 2020 Recurring capex JV investments & acquisitions Ne
Slide 23: Managed for Exit / Divestments
Managed for Exit / Divestments Managed for Exit • Frozen Dough (Jan. 2021) • Approx. $25M proceeds; $ 11M estimated book profit (2021) • Co-packing blending: Discontinued by end of 2020 • Thrive algae cooking oil: Exited mid-2020 • FDCA • In process of exiting the FDCA project in 2021 • Breda (Jan.
Slide 24: Dividend
Dividend Progressive regular dividend policy • Ambition to annually pay out a stable to gradually increasing absolute dividend amount per share Proposed regular dividend • All cash € 0.56/share (43% pay-out ratio) Timing • Dividend proposal to be approved by AGM: 21 May 2021 • Record date: 24 May 20
Slide 25: Outlook FY 2021
Outlook FY 2021 Core business organic sales growth towards higher end of 4-7% guidance range • Sustainable Food Solutions: Positive natural preservation trend is continuing , expanding functional systems into close adjacencies • Lactic Acid & Specialties: Total Corbion PLA joint venture drawing incr
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Slide 27: EBITDA bridge Q4 2020
EBITDA bridge Q4 2020 50.0 14.5 40.0 8.5 30.0 6.5 € mln 2.5 0.1 20.0 28.3 25.3 10.0 0.0 Adj. EBITDA Q4 Volumes Pricing and mix Costs Currency impact Acquisitions Adj. EBITDA Q4 2019 Core 2020 Core 27 © 5/3/2020