Slide 1: Q4/FY15 Results
Q4/FY15 RESULTS TJERK DE RUITER, EDDY VAN RHEDE 2/3/2016 VAN DER KLOOT
Slide 2: Highlights Q4 2015
Highlights Q4 2015 • Organic net sales growth of 4.5%, mostly price/mix driven (2.8%) • Net sales growth of 14.9%; currencies added 9.0% • EBITDA Q4 excluding one-off items EBITDA € 33.2M (Q4 14: € 30.2M): +10% • Organic decrease of 6% due to 1) absorption effect, 2) higher variable compensation, 3)
Slide 3: PLA – Business as usual no longer an option for fossil plastics
PLA – “Business as usual” no longer an option for fossil plastics - Only fossil-based plastics is not an option Fossil-based plastics impact 2014 - 2050 anymore • Fossil-based plastics increased 20x since mid-60s • By 2050 that will nearly triple from current levels under no-action scenario • Fossil
Slide 4: PLA – Market Update
PLA – Market Update Market currently stable at 120 kTpa, but growth PLA Market Size expected to resume 250 • Fracking applications had major positive impact on 200 2011-2014H1, but declined steeply from 2014H2 to kTpa 150 low levels 100 • Underlying growth excl. fracking has continued 50 0 2005 2007
Slide 5: PLA – Progress report
PLA – Progress report >15 Letters of Intent signed with customers • Majority of these customers are testing or have already validated Corbion PLA • First (small volume) commercial sales to number of Corbion’s PLA portfolio customers Launched full portfolio of PLA resins • Polymerization partners: Hi
Slide 6: PLA – What we will build
PLA – What we will build • PLA: 75 kTpa – est. capex € 65M • Lactide extension: +25 kTpa - est. capex € 20M • Distillation: enables cost competitive production for existing PLA markets • Lactide-only customers will have secure supply Timeline: Operational in H2 2018 Location: Rayong, Thailand 6 © 2/
Slide 7: R&D roadmap – Progress in H2 2015
R&D roadmap – Progress in H2 2015 YTD YTD € million 2015 2014 R&D expenses cash-out 32.8 34.0 Capitalization -2.7 -4.5 Amortization / depreciation 2.5 2.5 R&D expenses excl. one-off items 32.7 32.0 Transfer Emulsifier portfolio to non-PHO • FDA announced in June 2015 it will no longer recognize Part
Slide 8: Q4/FY 2015 Financials
Q4/FY 2015 Financials 8 © 2/3/2016
Slide 9: Profit & Loss: Q4 and FY2015
Profit & Loss: Q4 and FY2015 € million Q4 Q4 2015 2014 % YTD YTD 2015 2014 % • EBITDA excl. one-off items growth 9.9% in Q4 Net Sales 230.4 200.6 14.9% 918.3 770.1 19.2% supported by: EBITDA excl. one-off items 33.2 30.2 9.9% 150.3 109.6 37.1% EBITDA margin 14.4% 15.1% 16.4% 14.2% • Volume growth De
Slide 10: Sales Growth per segment in Q4 2015
Sales Growth per segment in Q4 2015 Total growth Total Vs Q4 2014 Currency at constant Acquisitions Organic Price/Mix Volume Growth currency Biobased Ingredients 12.2% 9.0% 3.2% 1.4% 1.8% 1.5% 0.3% - Food 14.4% 9.9% 4.5% 1.6% 2.9% 1.7% 1.2% - Biochemicals 5.5% 6.3% -0.8% 0.9% -1.7% 1.0% -2.7% Biobas
Slide 11: EBITDA bridge Q4 2015
EBITDA bridge Q4 2015 €M 40 5.0 • Organic volume growth Biobased 35 3.8 Ingredients: 0.3% 1.5 0.9 4.0 -0.1 30 25 • Cost level adversely impacted by non- -7.1 structural items. E.g. Negative absorption 20 38.2 effect and higher variable compensation 33.2 15 30.2 Biobased Ingredients 10 • Biobased Inn
Slide 12: EBITDA bridge FY 2015
EBITDA bridge FY 2015 €M 160 6.9 5.9 • Organic volume growth Biobased 20.1 Ingredients: 1.7% 140 5.4 15.0 120 6.8 • Cost level adversely impacted by non- structural items. E.g. Negative absorption -13.5 100 effect and higher variable compensation 80 156.2 Biobased Ingredients 150.3 60 • Positive pro
Slide 13: Biobased Ingredients
Biobased Ingredients € million Q4 2015 Q4 2014 YTD 2015 YTD 2014 • Organic sales growth in Q4: 1.8% Net Sales 221.3 197.2 895.9 759.9 Organic growth 1.8% 2.0% 3.3% 2.5% • EBITDA margin decrease to 15.9% EBITDA excl. one-off items 35.2 32.1 155.0 121.2 in Q4 (Q4 14: 16.3%) Margin 15.9% 16.3% 17.3% 15
Slide 14: Business Segment Food
Business Segment Food Q4 Q4 YTD YTD Q4 highlights € million 2015 2014 2015 2014 Net Sales 169.5 148.1 687.8 573.5 • Organic growth: 2.9% Organic growth 2.9% 0.0% 3.7% -0.5% EBITDA excl. one-off items 29.8 28.2 129.2 105.5 • Bakery: sales down, in line with Margin 17.6% 19.0% 18.8% 18.4% small market
Slide 15: Business Segment Biochemicals
Business Segment Biochemicals Q4 Q4 YTD YTD Q4 highlights € million 2015 2014 2015 2014 Net Sales 51.8 49.1 208.1 186.4 • Electronics and Medical Organic growth -1.7% 8.2% 1.6% 12.6% Biomaterials market segments performed well EBITDA excl. one-off items 10.3 9.6 45.5 38.2 Margin 19.9% 19.6% 21.9% 20
Slide 16: Biobased Innovations
Biobased Innovations Q4 Q4 YTD YTD • EBITDA more negative in Q4 € million 2015 2014 2015 2014 than in previous quarters Net Sales 9.1 3.4 22.4 10.2 Organic growth 158.2% 120.6% 106.7% 96.4% • Ramp-up in R&D expenses EBITDA excl. one-off items (2.0) (1.9) (4.7) (11.6) Margin -21.8% -56.3% -20.8% -113
Slide 17: Streamline program progress
Streamline program progress €M Strategy 2014 2015 Total Oct 2014 Guidance Streamline: - EBITDA Savings (structural) € 20M - € 15.0M € 15.0M - EBITDA one-off impact € (20)M € (12.1)M € (0.1)M € (12.2)M US Plant Consolidation: - Capex (cash) € (10)M - € (7.0)M € (7.0)M - Impairment (non cash) No guida
Slide 18: Net debt/cash bridge FY 2015
Net debt/cash bridge FY 2015 €M 170 • Net debt position of € 62.1M per end of 2015 1.0 120 -5.6 70 • Net debt/EBITDA ratio of 0.4x 114.9 -54.7 51,2 20 5.8 • Operating Working Capital -58.4 decreased by €1.0M -30 62.1 31,9 -50.0 -80 -15.1 7,7 • Dividend & additional returns to shareholders • € 108.4M
Slide 19: Free Cash Flow
Free Cash Flow €M 150 Rolling 12 months 100 50 110 75 55 67 57 34 24 0 -7 -51 -55 -69 -87 -30 -74 -50 -35 -100 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 Operating Cash Flow Investment Cash Flow Free Cash Flow • Improving trend in free cash flow 19 © 2/3/2016
Slide 20: Operating Working capital
Operating Working capital Days* -9% 120 69 59 63 100 63 80 43 43 39 38 60 40 58 55 52 50 20 0 -32 -31 -27 -20 -34 -40 -60 H1 2014 FY 2014 H1 2015 FY 2015 Inventory days Trade Receivables (DSO) Trade Payables (DPO) *Balance sheet position (e.g. inventory value)/net sales last quarter * 90 • Operating
Slide 21: Capital Expenditures
Capital Expenditures €M 80 70 € 62.5M € 61.7M Spending in line with indicated 60 7.6 € 60-70M: € 61.7M 50 20.2 40 30 54.1 42.3 20 Major capex projects in FY 2015 10 0 Maintenance 2010 2011 2012 2013 2014 2015 Biobased Ingredients Biobased Innovations Corbion total • Grandview facility • Non-PHO emul
Slide 22: Dividend and share buyback
Dividend and share buyback Payment Year 2014 2015 2016 Regular dividend (€/share) 0.15 0.21 0.43 Additional dividend (€/share) - 0.81 0.42 Combined dividend yield* 1.0% 7.4% 3.9% Additional dividend (€ M) - 50 25 Share buyback (€ M) - 50 50 Regular dividend *Reference share price 1/1 payment year •
Slide 23: Outlook 2016
Outlook 2016 Biobased Ingredients growth in 2-4% range • Food: Steady growth pattern • Biochemicals: Improved growth rates from Q2 onwards Streamline savings: Reach run-rate of annual savings of € 20M Biobased Innovations • Irregular product and sales order pattern, and spend phasing • Continued hig
Slide 24: Our strategy – Disciplined Value Creation
Our strategy – Disciplined Value Creation 24 © 2/3/2016
Slide 25: Corbion
Corbion