Slide 1: Q4 and FY 2014 Results
Q4 AND FY 2014 RESULTS TJERK DE RUITER/EDDY VAN RHEDE 26/2/2015 VAN DER KLOOT
Slide 2: Highlights Q4 2014
Highlights Q4 2014 • Net sales growth of 8.7% driven mostly by volume growth of 2.2% and currencies at 5.8% • Organic sales growth of 2.9% • Organic growth: • Food: 0.0% • Biochemicals: 8.2% • Biobased Innovations: 120.6% • EBITDA Q4 excluding one-off costs increased by 36%, at constant currencies 2
Slide 3: Strategic Update 2014 – Disciplined Value Creation
Strategic Update 2014 – Disciplined Value Creation 3 © 26/2/2015
Slide 4: R&D roadmap – Progress in 2014
R&D roadmap – Progress in 2014 t en p pm lo ale e ve at o sc De el lid ev l Va cia d td an er nd g ep h ign m in ta c nc op un m s s De Co Co Te Sc La Core Process Innovations Gypsum free process 2nd Generation Biomass Market Led Innovations Lactide/PLA CASE Succinic acid (BASF JV) Animal Health (Al
Slide 5: Oil price impact on PLA
Oil price impact on PLA Polystyrene vs PLA price 2008 - 2014 2,600 Polystyrene US PLA export US 2,400 2,200 2,000 US$/ton 1,800 1,600 1,400 Source: ICIS, Globaltradetracker 1,200 1,000 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12 Jan/13 Jan/14 Jan/15 • PLA prices have lower volatility vs. petro-based plastics
Slide 6: Q4/FY14 Financials
Q4/FY14 Financials 6 © 26/2/2015
Slide 7: Profit & Loss: Q4 and FY 14
Profit & Loss: Q4 and FY 14 € million Q4 2014 Q4 2013 YTD 2014 YTD 2013 • EBITDA growth 36% in Q4 supported by: Net Sales 200.5 184.6 770.1 743.6 • Volume growth EBITDA excl. one-off costs 30.3 22.3 109.6 99.7 EBITDA % 15.1% 12.1% 14.2% 13.4% • Stronger Currency (USD) in H2 • Positive absorption eff
Slide 8: Sales Growth per segment in Q4 2014
Sales Growth per segment in Q4 2014 Total growth at Total Currency constant Acquisitions Organic Price/Mix Volume Growth currency Biobased Ingredients 7.8% 5.8% 2.0% 0.0% 2.0% -0.2% 2.2% - Food 6.5% 6.5% 0.0% 0.0% 0.0% -0.7% 0.7% - Biochemicals 11.6% 3.4% 8.2% 0.0% 8.2% 0.4% 7.8% Biobased Innovation
Slide 9: EBITDA bridge Q4 2014
EBITDA bridge Q4 2014 35 • Organic Volume growth: 2.2% 2.2 0.6 30 0.8 3.2 1.3 • Lower raw material prices and 25 11.9 improved mix effect 20 • Positive currency impact € 2.2M 15 30.3 10 22.3 • Innovations increased on 18.4 Bioplastics/PLA ramp up and succinic 5 contribution • One-off costs in EBITDA
Slide 10: EBITDA bridge FY 2014
EBITDA bridge FY 2014 140 • Organic volume growth 2.9% 10.0 120 9.5 1.8 • Positive pricing/mix 10.5 0.9 100 • Cost increases 14.8 • General cost inflation (-) 80 • Higher average FTE’s (-) • R&D increase (-) 60 109.6 • No service contribution from 99.7 94.8 Bakery Supplies acquirer (2013) 40 20 0 10
Slide 11: One-off items in FY 2014
One-off items in FY 2014 One-off items 2014 • One-off costs in Q4 were Reorganization charge - Streamline -12.1 Former BoM -2.8 € 37.8M Other 0.1 One-off items in EBITDA -14.8 • All one-off items are non-cash for 2014 (severance payments Impairment - Thailand lactide facility -17.6 Impairment - Clos
Slide 12: New segmentation
New segmentation 12 © 26/2/2015
Slide 13: Biobased Ingredients
Biobased Ingredients € million Q4 2014 Q4 2013 YTD 2014 YTD 2013 • Organic sales growth in Q4: 2.0% Net Sales 197.2 183.0 759.9 738.4 Organic growth 2.0% 3.7% 2.5% 1.2% • EBITDA margin increase to 15.9% EBITDA excl. one-off costs 32.2 24.9 121.2 113.2 (FY13: 15.3%) Margin 16.3% 13.6% 15.9% 15.3% 5.0
Slide 14: Business Segment Food
Business Segment Food Q4 Q4 YTD YTD € million 2014 2013 2014 2013 • Organic growth in Q4: 0.0% Net Sales 148.1 139.0 573.5 571.8 Organic growth 0.0% 0.4% -0.5% 0.2% • Bakery: FY14 sales up slightly, EBITDA excl. one-off costs 28.2 22.3 105.5 103.6 in line with market growth Margin 19.0% 16.0% 18.4%
Slide 15: Business Segment Biochemicals
Business Segment Biochemicals Q4 Q4 YTD YTD • Strong performance € million 2014 2013 2014 2013 throughout FY14, across Net Sales 49.1 44.0 186.4 166.6 markets Organic growth 8.2% 15.2% 12.6% 4.4% EBITDA excl. one-off costs 9.6 7.2 38.2 31.5 Margin 19.6% 16.4% 20.5% 18.9% • Feed acidifiers impacted g
Slide 16: Biobased Innovations
Biobased Innovations Q4 Q4 YTD YTD • EBITDA loss reduced: € million 2014 2013 2014 2013 Net Sales 3.4 1.5 10.2 5.2 • Calcium Proprionate Organic growth 120.6% 75.6% 96.4% 65.7% initiative was stopped EBITDA excl. one-off costs (1.9) (2.6) (11.6) (13.5) • First contribution from Margin -56.3% -169.1%
Slide 17: Net debt/cash bridge FY 2014
Net debt/cash bridge FY 2014 • Net cash position of € 5.8M per 140 end of December 2014 88.8 120 100 22.0 • Working Capital impacted our 80 net cash position € 22.0M negatively mainly due to 60 increased inventory 40 20 29.4 67.0 5.6 • Other includes translation effect 5.8 0 17.8 of our debt in USD
Slide 18: Capital Expenditures
Capital Expenditures 80 € 75.5M 70 € 62.5M Major capex projects in 2014 60 50 20.2 • Medical Biomaterials plant in 40 the US 30 20 42.3 10 • New laboratory facilities in NL 0 2010 2011 2012 2013 2014 • Development of gypsum-free Biobased Ingredients Biobased Innovations lactic acid technology • Succ
Slide 19: Dividend and additional shareholder return
Dividend and additional shareholder return Regular dividend • New dividend policy introduced at Strategic Update October 2014 • 35-45% of Net Profit adjust for one-off items • Submitted for AGM approval: € 0.21/share, choice of cash or shares € 100M Additional shareholder return 2015 • € 50M additio
Slide 20: Outlook FY 2015: Both opportunities and headwinds
Outlook FY 2015: Both opportunities and headwinds • Stronger US$ should support earnings • Lower oil price could negatively impact urgency to switch to biobased alternatives • Food: marginal volume growth improvement • Biochemicals: more moderate growth rate compared to 2014 • Innovations: priority
Slide 21: Q&A
Q&A 21 ©26/2/2015 e Corbion
Slide 22: Corbion
Corbion