Slide 1: Algemene Vergadering van Aandeelhouders 2018
ALGEMENE VERGADERING VAN AANDEELHOUDERS 2018 TJERK DE RUITER (CEO) 25/5/2018
Slide 2: Agenda
Agenda • 2017 in review • Operational • Financial • Dividend • Strategy ‘Creating Sustainable Growth’ • Review • Ingredient Solutions • Innovation Platforms • Sustainability 2 © 25/5/2018
Slide 3: 2017 in review
2017 in review 3 ©25/5/2018 Corbion
Slide 4: 2017 in Review - Operational
2017 in Review - Operational Ingredient Solutions • Food: Organic growth of -2%; below guidance range • Bakery declined due to large reorganization of customer portfolio • Strong performance in Meat • Biochemicals: Organic growth of 6%; within guidance range • All markets grew except for Animal Heal
Slide 5: Financial key items 2017
Financial key items 2017 • Net sales: € 892M (-2.2%) • Organic net sales growth -0.4% • EBITDA excl. one-off items: € 164M (-3.5 %) • Lower volumes offset by product mix improvements • Higher input costs (mainly sugar) • TerraVia acquisition impact in Q4 • Earnings per Share: € 1.46 (-16.2%) • Net d
Slide 6: Dividend proposal
Dividend proposal Progressive regular dividend policy • Ambition to annually pay out a stable to gradually increasing absolute dividend amount per share Proposed regular dividend 120 1.2 1.0 100 • All cash € 0.56/share (2016: € 0.56/share) Net deb/EBITDA 0.8 80 0.6 €M 60 0.4 • 41% pay-out ratio 40 0
Slide 7: Strategy 'Creating Sustainable Growth'
Strategy ‘Creating Sustainable Growth 7 © 25/5/2018
Slide 8: Disciplined Value Creation – Financial target review
Disciplined Value Creation – Financial target review Target 2014 - 2018 Status 2016 Ingredient Solutions Organic sales growth 2-4% 1.1%* X EBITDA Margin improvement >18% (by 2018) 19.8% V Streamline savings 20M 20M V ROCE >15% 28.2% V Innovation Platforms max. EBITDA loss p.a. € -14M € -6.4M V Total
Slide 9: 2018-2021: Disciplined Value Creation boosted by Creating Sustainable Growth
2018 -2021: Disciplined Value Creation boosted by Creating Sustainable Growth Revenues 3-6% growth +1-2 % growth 2-4% growth Innovation Platforms Ingredient Solutions 2014 2017 2021 Creating Sustainable Growth & Disciplined Value Creation 9 © 25/5/2018
Slide 10: Driving for growth in Ingredient Solutions
Driving for growth in Ingredient Solutions Ingredient Solutions 2 – 4 % • Food solutions in • Bakery US & LatAm • Meat US • Strengthen broad derivative portfolio • Market leadership positions in Lactic Acid and Emulsifiers 10 © 25/5/2018
Slide 11: Meat performance driven by clean label product
Meat performance driven by clean label product 11 © 25/5/2018
Slide 12: Driving for growth in Innovation Platforms
Driving for growth in Innovation Platforms Innovation Platforms 10 – 30 % Total Corbion JV Derivatives PLA Succinity TerraVia Anchor product Lactic acid Other organic acids Fatty acids Organic acid fermentation Recent initiatives in PLA and Algae technology will provide meaningful contributions in c
Slide 13: Total Corbion PLA joint-venture (50/50)
Total Corbion PLA joint-venture (50/50) Construction on-time, on budget. Expected start-up in second half of 2018 13 © 25/5/2018
Slide 14: Versatile algae product platform
Versatile algae product platform Corbion acquired most of TerraVia assets in September 2017 • San Francisco based R&D team + IP portfolio + Pilot plant • Peoria based Demo plant • Moema, Brazil based Commercial plant (in 50.1/49.9 JV with Bunge) 14 © 25/5/2018
Slide 15: Algae-based products have unmatched sustainability profile
Algae-based products have unmatched sustainability profile Oil Yield per Hectare (mt/ha)1 GHG Emissions per kg of Oil3 4 8 7 3 6 5 2 4 3 1 2 1 0 0 Algae Oil Palm Rapeseed Sunflower Palm Kernel Soybean Olive (Sugarcane) Protein Yield per Hectare2 GHG Emissions per kg of Protein4 4 >250 40 3 30 2 20 1
Slide 16: AlgaPrime DHA
AlgaPrime DHA 16 © 25/5/2018
Slide 17: Sustainability central part of new strategy
Sustainability central part of new strategy Ambitions now aligned with United Nations SDG's 17 © 25/5/2018
Slide 18: Corbion's alignment with UN Sustainable Development Goals
Corbions alignment with UN Sustainable Development Goals Population growth • End hunger • Food security Corbion’s value • Improved nutrition Food security • Sustainable agriculture proposition Offering conscious choices through sustainable ingredient Changing values solutions uniquely tailored to cr
Slide 19: Creating a positive impact by growing our business in sustainable ingredient solutions
Creating a positive impact by growing our business in sustainable ingredient solutions and maximizing our contribution to zero hunger and responsible production and consumption (SDG 2 &12) 19 © 25/5/2018
Slide 20: Improving our sustainability profile
Improving our sustainability profile Responsibly sourced sugar Landfill byproducts (kT) 100% 4.0 80% 3.0 60% N/A 2.0 40% -75% 1.0 20% 0% 0.0 2015 2017 2015 2017 Renewable electricity Landfill generic waste (kT) 40% +25% 1.2 -13% 20% 0.8 0.4 0% 0.0 2015 2017 2015 2017 20 © 25/5/2018
Slide 21: Sustainability 2030 Targets
Sustainability 2030 Targets Responsible sourcing • 100% of key agricultural raw materials responsibly sourced • Carbon footprint target for Scope 3 upstream emissions based on science based targets methodology Responsible operations • Zero waste to landfill • 100% renewable electricity • Carbon foot
Slide 22: Our vision for 2021
Our vision for 2021 22 © 25/5/2018
Slide 23: Our vision for 2021
Our vision for 2021 Be a collaborative > 10% of Corbion Having started innovator of Net sales from construction of sustainable Innovation gypsum-free lactic ingredient solutions Platforms acid plant 23 © 25/5/2018
Slide 24: Disclaimer
Disclaimer No representation or warranty is made as to the truth or accuracy of any data, information or opinions contained herein or as to their suitability for any purpose, condition or application. None of the data, information or opinions herein may be relied upon for any purpose or reason. Corb
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