Corbion Nv · EURONEXT:CRBN

Corbion Nv — H1 2019 Earnings Presentation

18 slides from Corbion Nv's earnings presentation, Aug 7, 2019

  1. Slide 1: H1 2019 Results

    H1 2019 RESULTS TJERK DE RUITER (CEO) / EDDY VAN 7/8/2019 Photo © Total Corbion PLA RHEDE VAN DER KLOOT (CFO)

  2. Slide 2: Highlights H1 2019 results

    Highlights H1 2019 results • Organic net sales growth of 0.9% • Net sales growth of 7.4% due to positive currency impact, acquisitions and organic growth • Food: Organic growth 2.0%. Growth across all businesses • Biochemicals: Organic growth -3.9%, driven by Electronics and Agrochemicals. Strong pe

  3. Slide 3: Business overview

    Business overview Growth through UltraFresh, Pristine, new natural mold inhibitors based on lactic Bakery acid Food Meat Continued strong growth in natural solutions Other Slight increase Ingredient Solutions Pharma/Medical Strong growth in resorbable medical polymers and pharma grade lactic acid Ch

  4. Slide 4: H1 2019 Financial Results

    H1 2019 Financial Results 4 © 7/8/2019

  5. Slide 5: Profit and Loss: H1/Q2 2019

    Profit and Loss: H1/Q2 2019 € million YTD YTD Q2 Q2 • Adjusted EBITDA -0.1% (organic growth 2019 2018 % 2019 2018 % 0.6%) in H1 2019: Net Sales 471.9 439.2 7.4% 243.0 226.2 7.4% Adjusted EBITDA 71.4 71.5 -0.1% 36.5 32.9 10.9% • Organic sales growth of 0.9% Adjusted EBITDA % 15.1% 16.3% 15.0% 14.5% •

  6. Slide 6: Sales Growth per segment in H1/Q2 2019

    Sales Growth per segment in H1/Q2 2019 Total Acquisitions Total growth at Net sales Currency /(Divestmen Organic Price/Mix Volume growth constant ts) currency YTD 2019 vs 2018 Ingredient Solutions 6.3% 4.9% 1.4% 1.0% 0.4% 1.3% -0.9% - Food 8.6% 5.3% 3.3% 1.3% 2.0% 1.7% 0.3% - Biochemicals -0.2% 3.7%

  7. Slide 7: Ingredient Solutions

    Ingredient Solutions YTD YTD Q2 Q2 • Organic sales growth in H1 2019 0.4% € million 2019 2018 2019 2018 Net Sales 443.6 417.5 227.2 210.9 • Q2: +1.3% Organic growth 0.4% 1.6% 1.3% 1.1% • Adjusted EBITDA margin at 20.5% (H1 2018: 20.3%) Adjusted EBITDA 90.8 84.8 45.5 41.5 Adjusted EBITDA % 20.5% 20.3

  8. Slide 8: Business Segment Food

    Business Segment Food YTD YTD Q2 Q2 H1 2019 key items € million 2019 2018 2019 2018 • Organic sales growth of 2.0% Net Sales 330.8 304.5 172.7 157.3 Organic growth 2.0% 0.1% 2.3% 0.6% • All markets growing Adjusted EBITDA 59.5 54.7 30.6 27.9 Q2 key items Adjusted EBITDA % 18.0% 18.0% 17.7% 17.7% • O

  9. Slide 9: Business Segment Biochemicals

    Business Segment Biochemicals YTD YTD Q2 Q2 H1 2019 key items € million 2019 2018 2019 2018 Net Sales 112.8 113.0 54.5 53.6 • Organic sales decline of -3.9% Organic growth -3.9% 6.2% -1.8% 2.5% • Margin increase through better business mix Adjusted EBITDA 31.3 30.1 14.9 13.6 Adjusted EBITDA % 27.7%

  10. Slide 10: Innovation Platforms

    Innovation Platforms YTD YTD Q2 Q2 H1 2019 key items € million 2019 2018 2019 2018 Net Sales 28.3 21.7 15.8 15.3 • Higher lactic acid sales to Total Organic growth 11.2% 56.1% -11.5% 71.9% Corbion PLA JV (start-up December 2018) Adjusted EBITDA (19.4) (13.3) (9.0) (8.6) Adjusted EBITDA % -68.6% -61.

  11. Slide 11: EBITDA bridge H1 2019

    EBITDA bridge H1 2019 80 5.2 4.0 3.4 Ingredient Solutions 3.4 70 1.8 5.0 1.3 4.6 • Organic increase due to 60 higher price/mix 50 • Volumes lower € mln 40 Ingredient Solutions 76.0 74.8 • Lower lactic acid volumes 71.5 71.4 30 • Significant positive currency 20 impact 10 Innovation Platforms 0 • Inc

  12. Slide 12: Net debt bridge H1 2019

    Net debt bridge H1 2019 • Net debt/EBITDA ratio increased to 2.1x (2018 year end: 1.8x) €M 1.8x 2.1x • Net debt position of € 296.2M 203.3 59.7 • Operating Working Capital 296.2 19.5 4.3 • Increased by € 19.5M 29.7 32.9 3.2 28.4 28.5 6.1 • Dividend € 32.9M cash-out • IFRS 16 (leases): € 28.4M • Gran

  13. Slide 13: Free Cash Flow

    Free Cash Flow 150 Rolling 12 months 100 69 72 126 123 118 120 110 55 105 50 101 48 100 67 75 57 24 24 12 € mln 0 5 -1 -7 -51 -55 -58 -51 -52 -30 -74 -87 -94 -88 -50 -106 -114 -100 -150 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Operating cash flow Invest

  14. Slide 14: Operating Working Capital

    Operating Working Capital 120 74 77 77 69 70 69 69 100 59 63 72 63 47 47 80 43 42 44 46 49 43 39 38 44 60 40 Days 58 56 56 63 63 50 55 52 55 51 55 20 0 -27 -28 -30 -23 -28 -34 -32 -31 -33 -36 -32 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019 Invent

  15. Slide 15: Capital Expenditures

    Capital Expenditures 70 € 61.7M € 58.4M • H1 2019 Capex: € 27.6M 60 7.6 € 50.0M € 49.4M 8.1 50 1.8 4.7 11.4 15.0 40 • € mln € 27.6M Major capex projects 30 54.1 20 42.9 38.9 7.1 • Lactic acid expansion 35.0 9.7 10 10.8 • Investments in Algae Ingredients 00 Orindiuva production plant 2015 2016 2017 2

  16. Slide 16: Outlook FY 2019

    Outlook FY 2019 • Organic net sales growth Corbion: near low end of 3-6% range • Ingredient Solutions • Organic sales growth: 1-2% range • Food growth acceleration in H2 vs H1 (2.0%) • Biochemicals growth to improve in H2 vs H1 (-3.9%), but still full year decline • Adjusted EBITDA margin: • Improve

  17. Slide 17: Slide 17

  18. Slide 18: EBITDA bridge Q2 2019

    EBITDA bridge Q2 2019 45 4.3 40 1.6 1.8 35 2.5 1.5 1.4 0.7 1.7 30 25 € mln Ingredient Solutions 20 40.8 37.9 36.5 32.9 15 10 5 0 18 © 7/8/2019

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