CropEnergies AG · LSE:0DXG
CropEnergies — Investor Presentation (September 2023)
42 slides from CropEnergies's investor presentation, September 2023
Slide 1: Investors Presentation
Investors Presentation September 2023 Dr Stephan Meeder, CEO/CFO Heike Baumbach, Head of Investor Relations
Slide 2: Renewable ethanol
Renewable ethanol Climate protection in the transport sector • Produced from domestic, renewable raw CO2 Savings materials 100% Ethanol E20 E10 E0 (Petrol) • Helps fossil carbons stay in the ground permanently and stops driving climate 0% -7,5% change -15% • Less greenhouse gases, nitrogen oxides &
Slide 3: Ethanol: >75% less GHG emissions
Ethanol >75% less GHG emissions compared to fossil fuels* • The GHG values of all elements in the value-added chain are added up • The emissions from ethanol when used in combustion engines is zero • European ethanol reduces annual GHG emissions by >10 Mt** Cultivation Transport Ethanol Ethanol CO2
Slide 4: Range of products
Range of products Renewable ethanol As an additive to petrol to improve the As neutral alcohol for food and beverages greenhouse gas balance As neutral alcohol for the processing As a basis material for the chemical industry industry: cosmetics, pharmaceuticals, disinfection, technical applications
Slide 5: Food and animal feed
Food and animal feed From ethanol production All raw material components are processed into high-quality products Proteins Vital Wheat Gluten ProtiGrain®/ Ensus-DDGS Valuable protein product for food and High protein animal feed from dried animal feed industry stillage Vitamins Starch Minerals Fibre
Slide 6: The ethanol markets
The ethanol markets Production • World production • EU & UK production • 2023e: 129 million m³ (+3%) • 2023e: 7.3 million m³ (-5%) • Fuel applications: 110 million m³ (+4%) • Fuel applications: 5.2 million m³ (-4%) • 2024e: 132 million m³ (+2%) • 2024e: 7.9 million m³ (+9%) • Fuel applications: 113
Slide 7: Market development: Volumes
Market development Volumes EU27 & UK: ethanol sales [1,000 m³] Fuel Industrial Potable 10.216 Source: S&P Global Commodity 9.956 9.900 Ethanol market in the EU27 & UK in 2023 (in million m³) 10.500 , 9.143 975 975 975 970 • Consumption: 9.9 -1% (7.2 fuel | 2.8 non-fuel) 1.940 1.920 1.775 1.840 • Pro
Slide 8: Market development: Imports and prices
Market development Imports and prices Net imports EU-27 & UK [Mm³] Source: S&P Global Commodity Imports expected to remain at high level in 2023 3.0 3,0 • Large price difference made imports to Europe attractive • Price gap has decreased in recent months 1,5 1.5 Insights (2023) 2.5 2.8 2.2 • Europe
Slide 9: Market development: Feedstock market
Market development Feedstock market Euronext Paris wheat [€/t] Grain market 2023/24 450 • Grain prices in Q2 2023/24*: € 236 (350) /t Source: Euronext Paris • EU grain harvest: 272 (265) Mt exceeds consumption of 256 (255) Mt 275 • Imports to EU are expected to normalize after sharp increase in grai
Slide 10: Market development: Energy markets
Market development Energy markets Natural gas NL [€/MWh] Gas price quotations shifted upwards on supply uncertainties 320 FY 21/22 FY 22/23 FY 23/24 • Spot prices are up week-on-week on the Australian strikes limiting LNG 240 sendouts 160 • Further price developments and security of supply in Europe
Slide 11: Current political framework – RED II
Current political framework – RED* II 14% renewable energy in transport sector by 2030 Arable crops Annex IX-A Annex IX-B Electricity • 2020 level, max. 7% • Min. 0.2% in 2022 • Max. 1.7%, but still • Important component • Local, sustainable • Min. 1.0 % in 2025 x2 versus today in the future • Prote
Slide 12: Green Deal and Fit-for-55 package
Green Deal and Fit-for-55 package Parliament and Council agree on several key legislative initiatives Fit-for-55: Overall goal to reduce GHG emissions by 55% in 2030 Emission Trading System (ETS) • More ambitious GHG reduction goal of 62% (vs. 43%) • Introduction of a separate new ETS for buildings,
Slide 13: Revision Renewable Energy Directive
Revision “Renewable Energy Directive” Agreement between Council and Parliament Overall energy consumption • Target for renewable energies raised to 42.5% by 2030 with an additional 2.5% indicative top up Transport sector • Member States can choose between one of two binding targets by 2030: • Reduct
Slide 14: CropEnergies: Innovation from Biomass
CropEnergies Innovation from Biomass For our future: Sustainability and climate neutrality • Core business of mobility – with sustainable and climate-friendly fuels • New business area – based on ethanol derivatives as an alternative to fossil raw materials • Biogenic CO2 as the raw material of the
Slide 15: Protein Concentrate EnPro
Protein Concentrate “EnPro” Investment of ~ € 75 million at Ensus plant • New product will be marketed under the brand name EnPro • High-protein product aimed at UK and European aquafeed and pet food markets • Protein content around 55-60% • GMO free and sustainable • Diversification of overall prod
Slide 16: Biobased Chemicals (BBC)
Biobased Chemicals (BBC) Green carbons: growth opportunity for CropEnergies Global demand for carbon for chemicals increases (million tonnes of embedded carbon) 1,150 Mt C 20% CAGR 2.5% 25% Bio-based CO2-based 550 Mt C 8% 0.03% Fossil-based 55% 88% 2020 2050 Source: Kähler, F., Porc, O. and Carus, M
Slide 17: Project ZETAC
Project ZETAC € 120-130 million investment in renewable ethyl acetate • Construction of the first of its kind production facility in Europe based on Johnson Matthey technology Since 01/2022 Basic engineering • Production of 50,000 t ethyl acetate with a valuable hydrogen by-product stream directly f
Slide 18: Renewable Ethylene
Renewable Ethylen A further step towards Biobased Chemicals (BBC) Acquisition of 50% in the Dutch start-up Syclus BV • Objective: construction and operation of a first of its kind ethanol-to-ethylene facility at the Chemelot industrial park in Geleen, Netherlands • Annual production capacity approx.
Slide 19: Participation in East Energy
Participation in East Energy Energy transition requires green electricity • In September 2022, CropEnergies acquired a 25% stake in East Energy • East Energy plans the construction of several large photovoltaic parks in North-Eastern Germany • Production of green hydrogen from self-generated electri
Slide 20: CropEnergies acquires stake in LXP Group
CropEnergies acquires stake in LXP Group Next step in strategic realignment CropEnergies secured approx. 20% of the biotech startup Access to innovative technology for 2nd generation feedstocks • Patented process – mild digestion of cellulosic and hemicellulosic biomass like forest and wood residues
Slide 21: Financials 1st quarter 2023/24
Financials st 1 quarter 2023/24 21
Slide 22: Overview 1st quarter 2023/24
Overview 1st quarter 2023/24 • Ethanol production 221 (281) ,000 m³ - 21% • Revenues € 321.4 (398.9) million - 19% • EBITDA € 25.1 (97.8) million - € 73 million • Operating profit € 14.1 (87.2) million - € 73 million • Net income € 11.2 (64.9) million - € 54 million • Net financial assets (vs. 28.02
Slide 23: Operating profit
Operating profit (in € million) Q1 2023/24 Q1 2022/23 Δ Revenues / Production [M€ / 1,000 m3] 600 350 302 Revenues 321.4 398.9 - 19% 281 300 246 Overall performance 310.0 396.3 - 22% 450 228 221 250 450 Cost of materials* - 254.0 - 277.1 + 8% 399 200 300 328 311 321 150 Spread (gross) 56.0 119.2 - 5
Slide 24: Net earnings
Net earnings Net earnings [M€] (in € million) Q1 2023/24 Q1 2022/23 Δ 100 Operating profit 14.1 87.2 - 84% 80 71 65 Restructuring costs / special items - 0.2 0.0 - 60 At-equity result 0.0 0.1 - - 81% 45 - 40 Income from operations 13.9 87.2 - 84% 20 16 Financial result 1.3 0.5 > + 100 % 11 0 Earning
Slide 25: Cash flow
Cash flow Cash flow (+) / (in € million) Q1 2023/24 Q1 2022/23 Δ Investments* (-) [M€] 100 *in PPE Cash flow 20.6 73.4 - 52.8 80 73 Change in net working capital - 31.9 35.1 - 67.0 60 Net cash flow from operating activities - 11.3 108.5 - 119.8 40 Investments in property, plant et al. - 9.0 - 4.2 -
Slide 26: Outlook 2023/24 confirmed
Outlook 2023/24 confirmed • Revenues between € 1.27 to € 1.37 (previous year: € 1.49) billion • EBITDA in a range of € 140 to € 190 (previous year: € 294) million • Operating profit between € 95 to € 145 (previous year: € 251) million • Assumptions • Gradual decrease in volatility on the sales, raw
Slide 27: Sustainability
(< cropenergies In-aw vation from Berrass Sustainability
Slide 28: CropEnergies climate targets - we are on track
CropEnergies climate targets - we are on track Scope 1 and 2 emissions Targets 120% 100% • Reduction of fossil CO2 scope1 & 2: - 50% by 2030 89% 90% • Intermediate target of - 24% by 2026 • “Net zero“ by 2045 or before 60% 50% 30% Future Measures 0% • Usage of waste heat 0% 2018 2022 2030 2045 • Imp
Slide 29: BioWanze
BioWanze Our first plant on the way to a fossil free production process • Second biomass boiler in test phase – fully operational in Q3/2023 • 50,000 t CO2 reduction per year 100% boiler 1 boiler 1 + 2 renewable energy 10% 90% 90% biogas biomass 65% natural gas 2009 - 2023 from 2023 future goal: swi
Slide 30: Sustainability initiatives and external ratings
Sustainability initiatives and external ratings Review of developments FY 2022/23 • CE underlined it´s strong commitment to global sustainability goals by joining several voluntary initiatives in 2022/23 • CE increases transparency through participation in ratings and disclosure projects • CE is aim
Slide 31: EU-Taxonomy
EU-Taxonomy FY 2022/23: first-time reporting of taxonomy aligned figures Turnover Opex Capex 4% 6% 6% 27% 41% Total Total Total 39% € 1,488.3 M € 30.8 M € 56.4 M 57% 53% 67% Taxonomy-aligned € 91.0 M Taxonomy-aligned € 1.2 M Taxonomy-aligned € 3.1 M Taxonomy-eligible € 787.1 M Taxonomy-eligible € 12
Slide 32: Appendix
(< cropenergies In-aw vation from Berrass Appendix
Slide 33: Super E20 for Europe
Super E20 for Europe Higher biofuel blends needed to reach climate targets Super E20: a step to climate neutrality • Special requirements for E20 are now discussed in the German Standardization of standardization DIN circle E20-fuel Petrol with 15% to 20% (v/v) ethanol • A future E20-standard would
Slide 34: Ethanol & eFuels – the perfect match
Ethanol & eFuels – the perfect match Ethanol as “octane booster” eFuels need ethanol to increase performance eFuels • Manufactured using captured carbon dioxide together with hydrogen obtained from sustainable electricity sources such as wind and solar • Climate-friendly but energy intense • Ethanol
Slide 35: Revision Renewable Energy Directive
Revision “Renewable Energy Directive” Provisional agreement between Council and Parliament on 30 March 2023 September 2023 35
Slide 36: Climate-friendly liquid fuels will be essential
Climate-friendly liquid fuels will be essential Development of car registrations and vehicles in use Source: ACEA (2022, 2023) Source: KBA (2022, 2023) Source: KBA (2022,2023) September 2023 36
Slide 37: Gross electricity generation in the EU27
Gross electricity generation in the EU27 Total: 2,880 TWh Gross electricity generation in the Development of electricity generation in the EU27 in 2021* EU27 [TWh] Total: 2,880 TWh 1200 37% fossil (others) 1000 4% 32% 800 25% solid fossil 30% 15% renewables 600 19% 37% 17% natural gas 400 19% 15% 12
Slide 38: Transport emissions
Transport emissions Still the EU´s GHG problem child EU transport emissions still rising Importance of road transport emissions 130% Transport emissions 120% Non-road transport 1% 120% 110% Cars 13% Total GHG emissions 100% Road transport without 21% transport 78% Light Duty Trucks 2% 90% Total emis
Slide 39: Production sites of CropEnergies
Production sites of CropEnergies CropEnergies AG Mannheim - Germany Zeitz – Germany Wanze – Belgium Loon-Plage – France Wilton – UK CropEnergies Bioethanol GmbH BioWanze SA Ryssen Alcools SAS Ensus UK Ltd 400,000 m³ ethanol 300,000 m³ ethanol > 100,000 m³ ethanol for fuel 400,000 m³ ethanol 350,000
Slide 40: Corporate history
Corporate history With roots in the Südzucker AG September 2023 40
Slide 41: Schematic Diagram of the Production Process in BioWanze
@ crop . Schematic Diagramm of the Production Process in BioWanze energies a aa September 2023 a1 sadzNcker
Slide 42: Financial Calendar and Contact
Financial Calender 11 October 2023: Report for the 1st half of 2023/24 Contact 10 January 2024: Statement for the 3rd quarter 2023/24 CropEnergies AG 15 May 2024: Annual report and press and analysts‘ conference FY 2023/24 Maximilianstraße 10 10 July 2024 Statement for the 1st quarter of 2024/25 681
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