Slide 1: HY/Q2 2022 Results
HY/Q2 2022 RESULTS OLIVIER RIGAUD (CEO) 10/08/2022 EDDY VAN RHEDE VAN DER KLOOT (CFO)
Slide 2: Corbion results H1 2022
H1 2022 RESULTS Corbion results H1 2022 Olivier Rigaud Eddy van Rhede van der Kloot CEO CFO • Business performance • Financial performance • Outlook 2 10/08/2022
Slide 3: H1 2022 Key Points
H1 2022 RESULTS H1 2022 Key Points • Organic sales growth core activities 23.0% • Growth driven by all three business units • Adjusted EBITDA: €89.9M (13.1% margin), organic growth -0.4% • Inflationary cost developments ongoing – Rapid pricing actions as response • June was first break-even month fo
Slide 4: Business developments
H1 2022 RESULTS Business developments Sustainable Food Solutions • Preservation: • Supporting customer recipes reformulations driven by cost inflation • Launch of new natural antioxidant platform • Functional Systems: • Focus on shelf-life extension , Food ferments and reformulations driven by raw m
Slide 5: Major investment projects
H1 2022 RESULTS Major investment projects New lactic acid plant SFS: natural ferments Incubator: Algae fermentation • Thailand, Rayong • US, Peoria • Brazil, Orindiuva • Total capex: $ 230M • Total capex: € 10-15M • Total capex: € 10-15M • Operational: H2 2023 • Operational: End of 2022 • Operationa
Slide 6: Corbion raises commitment to 1.5°C, the most ambitious goal of the Paris Agreement
SUSTAINABILITY PROGRESS Corbion raises commitment to 1.5°C, the most ambitious goal of the Paris Agreement SBTi was launched in 2015 by CDP, UN Global Compact, World Resources Institute and WWF. SBTi helps companies to set credible carbon reduction targets in line with climate science. • Corbion joi
Slide 7: Financial performance
H1 2022 RESULTS Financial performance 7 10/08/2022
Slide 8: Profit and Loss
H1 2022 RESULTS Profit and Loss YTD YTD Q2 Q2 € million 2022 2021 % 2022 2021 % Net Sales 687.4 515.6 33.3% 367.3 264.1 39.1% Adjusted EBITDA 89.9 77.1 16.6% 49.9 33.2 50.3% EBITDA % 13.1% 15.0% 13.6% 12.6% Adjusted Depreciation & Amortization (36.3) (30.3) 19.8% (19.0) (15.5) 22.6% Adjustments 5.5
Slide 9: Firm pricing actions implemented
H1 2022 RESULTS Firm pricing actions implemented • We expect full compensation of higher input costs Additional raw materials, energy, packaging, freight increase • In aggregate, input costs in 2021 and 2022 rise by € 240M (of € million 2021 vs 2020 2022 vs 2021 Cumulative which € 190M in Core) Core
Slide 10: Sustainable Food Solutions
H1 2022 RESULTS Sustainable Food Solutions € million YTD 2022 YTD 2021 Q2 2022 Q2 2021 • Net sales organic growth of 18.5% Net sales 365.8 284.1 195.0 145.2 • Preservation Organic growth 18.5% 15.5% 21.2% 18.7% • Price increases & mix improvements • Limited volume growth after strong market share ga
Slide 11: Lactic Acid & Specialties
H1 2022 RESULTS Lactic Acid & Specialties € million YTD 2022 YTD 2021 Q2 2022 Q2 2021 • Net sales organic growth of 26.4% Net sales 201.8 151.0 106.0 76.5 • All product segments grew significantly Organic growth 26.4% 12.6% 29.4% 25.2% • Notable growth segments: Lactic acid to PLA, Esters (semi- con
Slide 12: Incubator
H1 2022 RESULTS Incubator € million YTD 2022 YTD 2021 Q2 2022 Q2 2021 • Net sales organic growth of 87.3% Net sales 24.1 11.8 14.5 6.6 • Sales growth driven by AlgaPrime DHA (omega-3) Organic growth 87.3% 161.1% 98.5% 132.3% • Adjusted EBITDA loss increased from € -6.8 million to € -8.5 million Adju
Slide 13: TotalEnergies Corbion joint venture
H1 2022 RESULTS TotalEnergies Corbion joint venture € million * YTD 2022 YTD 2021 Q2 2022 Q2 2021 • Net sales growth of 22.5% through combination of price and Net sales 91.9 75.0 43.8 37.9 volume growth EBITDA 30.1 27.5 14.4 11.6 EBITDA margin 32.7% 36.7% 32.9% 30.6% • EBITDA margin lower as higher
Slide 14: Non-core activities
H1 2022 RESULTS Non-core activities € million YTD 2022 YTD 2021 Q2 2022 Q2 2021 • Net sales organic growth of 26.3% in Emulsifiers Net sales 95.7 68.7 51.8 35.8 • Fully driven by price/mix improvements due to raw material Organic growth 26.3% 10.4% 28.5% 18.5% profile • Slightly negative volumes aft
Slide 15: Net debt bridge H1 2022
H1 2022 RESULTS Net debt bridge H1 2022 • Covenant net debt/covenant EBITDA increased from 2.6x to 3.3x • covenant net debt/covenant EBITDA is 3.75x 461.0 610.0 78.0 60.0 6.9 19.6 112.7 33.0 12.1 35.7 15 10/08/2022
Slide 16: Outlook 2022
H1 2022 RESULTS Outlook 2022 • Net sales organic growth core activities 20-25% (was: 15-20%) • Input cost increase for core vs 2020 of € 190 million (was: € 130 million) • Adjusted EBITDA margin core activities: lower end of 12-15% range (was: in 12-15% range) • higher dilutive effect on margin due
Slide 17: Annex
H1 2022 RESULTS Annex 17 10/08/2022
Slide 18: Net sales and Adjusted EBITDA: YTD/Q2 2022
H1 2022 RESULTS Net sales and Adjusted EBITDA: YTD/Q2 2022 € million YTD 2022 YTD 2021 Q2 2022 Q2 2021 Growth YTD Net sales Core 591.7 446.9 315.5 228.3 32.4% - Sustainable Food Solutions 365.8 284.1 195.0 145.2 28.8% - Lactic Acid & Specialties 201.8 151.0 106.0 76.5 33.6% - Incubator 24.1 11.8 14.
Slide 19: Sales growth per segment in YTD/Q2 2022
H1 2022 RESULTS Sales growth per segment in YTD/Q2 2022 Acquisitions/ Net sales Volume Price/Mix Organic Currency Total growth (Divestments) YTD 2022 vs YTD 2021 Core 2.0% 21.0% 23.0% 9.2% 0.2% 32.4% - Sustainable Food Solutions 0.1% 18.4% 18.5% 10.0% 0.3% 28.8% - Lactic Acid & Specialties 1.1% 25.3
Slide 20: Core Adjusted EBITDA bridge YTD 2022
H1 2022 RESULTS Core Adjusted EBITDA bridge YTD 2022 80 5.9 12.0 4.1 0.6 11.6 FTE increase € mln costs, 5.7M 40 75.8 66.0 Other, 5.9M 0 Adj. EBITDA Core Volumes Pricing and mix Fixed costs Currency impact Acquisitions Adj. EBITDA Core YTD 2021 YTD 2022 20 10/08/2022
Slide 21: Core Adjusted EBITDA bridge Q2 2022
H1 2022 RESULTS Core Adjusted EBITDA bridge Q2 2022 45 11.5 9.7 0.4 30 1.5 9.1 FTE increase € mln costs, 2.9M 41.1 15 27.9 Other, 6.2M 0 Adj. EBITDA Q2 Volumes Pricing and mix Fixed costs Currency impact Acquisitions Adj. EBITDA Q2 2021 Core 2022 Core 21 10/08/2022
Slide 22: Investments
H1 2022 RESULTS Investments • Total investments H1 2022 € 99M Investments • Recurring capex € 48M (including expansion projects) € mln • New lactic acid plant (Thailand) € 46M 200 • Recurring capex includes 11 160 • Lactic acid expansion € 15M 65 • Natural ferments € 5M 120 • ERP investment € 4M 36
Slide 23: Free Cash Flow
H1 2022 RESULTS Free Cash Flow 150 Rolling 12 months • Significant investment program 100 • New lactic acid plant in Thailand 118 120 114 109 50 100 105 107 97 32 31 24 26 • Lower operating cashflow 5 12 10 22 25 0 -1 • Increased working capital € mln -77 -65 -88 -80 -50 -94 -114 -106 -105 -119 • in
Slide 24: Working capital (days)
H1 2022 RESULTS Working capital (days) 160 • Increased Inventory days mainly caused 87 88 by inflationary input costs and safety 77 4 77 74 68 81 68 82 stock build up 51 53 47 47 46 45 50 80 49 43 • Debtor aging profile is stable 72 71 56 63 63 59 62 60 61 0 -28 -32 -34 -27 -29 -36 -37 -40 -36 -80 H
Slide 25: Investor relations
Investor relations Jeroen.van.Harten@corbion.com www.corbion.com +31 20 590 6293