Slide 1: H1 2016 Results
H1 2016 RESULTS TJERK DE RUITER, EDDY VAN RHEDE 10/8/2016 VAN DER KLOOT
Slide 2: Highlights H1 2016
Highlights H1 2016 • Organic net sales growth in H1 of 1.5%, mostly price/mix driven (1.7%) • Net sales growth of 0.8%; currencies -1.0% • Food growth: strong in Q1, decline in Q2 • Biochemicals: decline in Q1, strong recovery in Q2 • EBITDA H1 excluding one-off items EBITDA € 89.8M (H1 2015: € 77.3
Slide 3: Biobased Ingredients
Biobased Ingredients € million YTD 2016 YTD 2015 Q2 2016 Q2 2015 • Organic sales growth in H1: 0.5% Net Sales 444.5 445.2 222.1 228.9 Organic growth 0.5% 3.9% -0.8% 3.5% • EBITDA margin increase to 20.7% EBITDA excl. one-off items 92.1 80.1 48.5 40.8 in H1 (H1 15: 18.0%) Margin 20.7% 18.0% 21.8% 17.
Slide 4: Business Segment Food
Business Segment Food YTD YTD Q2 Q2 H1 key items € million 2016 2015 2016 2015 • Organic sales growth of 0.4% Net Sales 336.8 338.7 168.7 177.9 Organic growth 0.4% 3.4% -2.7% 3.4% • Margin improvement from business mix, lower input costs and program EBITDA excl. one-off items 72.6 65.1 38.5 34.5 Str
Slide 5: Business Segment Biochemicals
Business Segment Biochemicals YTD YTD Q2 Q2 H1 key items € million 2016 2015 2016 2015 Net Sales 107.7 106.5 53.4 51.0 • Organic sales growth weak in Q1, Organic growth 0.9% 5.4% 5.8% 4.0% strong in Q2 • Broad based growth in all markets EBITDA excl. one-off items 28.4 23.4 14.1 10.8 except Agrochem
Slide 6: Biobased Innovations
Biobased Innovations YTD YTD Q2 Q2 • EBITDA loss in H1 2016 € million 2016 2015 2016 2015 decreased slightly vs H1 2015 Net Sales 11.2 7.1 5.3 3.4 Organic growth 57.7% 85.5% 58.9% 149.3% • Higher lactide/PLA sales EBITDA excl. one-off items (2.3) (2.8) (2.4) (0.7) • Higher expense phasing Margin -20
Slide 7: PLA: On schedule for operation in H2 2018
PLA: On schedule for operation in H2 2018 Timeline: Operational in H2 2018; Groundbreaking in October 2016 Current phase: Detailed engineering; first equipment orders placed CapEx: $ 100M 7 © 10/8/2016
Slide 8: H1 2016 Financials
H1 2016 Financials 8 © 10/8/2016
Slide 9: Profit & Loss: H1 2016 and Q2
Profit & Loss: H1 2016 and Q2 YTD YTD Q2 Q2 • EBITDA excl. one-off items growth 16.2% in H1 € million supported by: 2016 2015 % 2016 2015 • Lower input costs Net Sales 455.7 452.3 0.8% 227.4 232.3 -2.1% • Price/mix improvements EBITDA excl. one-off items 89.8 77.3 16.2% 46.1 40.1 15.0% • Streamline
Slide 10: Sales Growth per segment in H1/Q2 2016
Sales Growth per segment in H1/Q2 2016 Total growth Total Currency at constant Acquisitions Organic Price/Mix Volume growth currency YTD 2016 vs 2015 Biobased Ingredients -0.2% -1.0% 0.8% 0.3% 0.5% 1.7% -1.2% - Food -0.6% -1.3% 0.7% 0.3% 0.4% 2.4% -2.0% - Biochemicals 1.1% -0.1% 1.2% 0.3% 0.9% -0.8%
Slide 11: EBITDA bridge H1 2016
EBITDA bridge H1 2016 €M 100 • Organic growth mostly driven by pricing 17.9 and mix 2.4 0.5 90 -1.8 • Main price/mix components: -4.6 -2.3 80 • Lower input costs • Business mix improvement in Food -2.0 70 and Biochemicals Biobased Ingredients 89.8 87.5 • Cost level including general inflation 60 77.
Slide 12: Net debt bridge H1 2016
Net debt bridge H1 2016 €M 20 • Net debt position of € 108.0M 0 63.2 per end of H1 2016 5.1 -20 -17.1 -62.1 • Net debt/EBITDA ratio of 0.7x -40 -24.9 51,2 -108.0 -60 • Operating Working Capital -80 increased by €17.1M -52.3 -100 31,9 2.0 -21.9 -120 7,7 • Dividend & additional returns to shareholders
Slide 13: Free Cash Flow
Free Cash Flow 150 80 Rolling 12 months 68 60 100 55 40 126 50 110 24 20 67 75 € mln 57 34 0 0 -7 -51 -55 -58 -20 -69 -74 -87 -50 -30 -35 -40 -100 -60 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 Operating cash flow Investment cash flow Free cash flow • Improving trend in free cash flow 13 © 10/8
Slide 14: Operating Working capital
Operating Working capital Days* +11% 120 69 70 100 59 63 63 80 43 42 43 39 38 60 40 58 55 52 56 50 20 0 -34 -32 -31 -27 -28 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 Inventory days Trade receivables (DSO) Trade payables (DPO) *Balance sheet position (e.g. inventory value)/net sales last quar
Slide 15: Capital Expenditures
Capital Expenditures €M 80 Major capex projects in H1 2016 70 € 62.5M € 61.7M 60 7.6 Maintenance 20.2 50 • Non-PHO emulsifier capability 40 30 Expansion 54.1 42.3 € 16.5M 20 4.6 • Completion of acid powder line 10 0 11.9 • US plant consolidation (Streamline) 2010 2011 2012 2013 2014 2015 2016 • PGME
Slide 16: Sugar price
Sugar price • Sugar NY #11 increase of 19% (avg YTD 22 2016 vs avg FY 2015) 20 • Outlook global sugar deficit increased 18 • Financial speculation record high • If higher prices persist, future margins 16 might be temporarily affected 14 negatively by 1-2% margin points • Strong track-record of pass
Slide 17: Outlook FY 2016
Outlook FY 2016 • Food: Sales growth below multi-year average guidance of 1-3% • Biochemicals: Sales growth near lower end of multi-year avg guidance of 5-8% • Streamline savings: Reach run-rate of annual savings of € 20M from Q2 onwards • EBITDA margin: Significantly exceeding 18.0% (target 2018) =
Slide 18: Corbion
> Corbion
Slide 19: Streamline program progress
Streamline program progress €M Strategy 2014 2015 H1 2016 Total Oct 2014 Guidance Streamline: - EBITDA Savings (structural) € 20M - € 15.0M € 2.4M € 17.4M - EBITDA one-off impact € (20)M € (12.1)M € (0.1)M €(2.3)M € (14.5)M US Plant Consolidation: - Capex (cash) € (10)M - € (7.0)M €(1.3)M € (8.3)M -
Slide 20: EBITDA bridge Q2 2016
EBITDA bridge Q2 2016 55 50 12.8 0.9 -0.7 -1.5 45 -1.7 -1.3 40 35 -3.8 46.1 44.8 Biobased Ingredients 30 40.1 25 20 20 © 10/8/2016