Slide 1: FY 2017 Results
FY 2017 RESULTS TJERK DE RUITER, EDDY VAN RHEDE 7/3/2018 VAN DER KLOOT
Slide 2: Highlights FY 2017 results
Highlights FY 2017 results • FY17 organic net sales decline of 0.4%, lower volumes, better price/mix • Food: Strong performance in Meat; Bakery declined • Biochemicals: Growth in guidance range. All markets grew except for Animal Health • Q4 organic organic net sales increase of 0.4% • Ingredient So
Slide 3: Update on Algae Ingredients
Update on Algae Ingredients • Acquisition TerraVia assets completed end of September 2017 • Limited EBITDA loss (excl. SB Oils JV) in Q4 of € 2.9M • Very high staff retention post-acquisition • Production priorities 2018 • Improvement program SB Oils JV plant (Moema, Brazil), focus on AlgaPrime DHA™
Slide 4: Update on PLA
Update on PLA • 50/50 Joint-venture to jointly produce & market PLA with Total established on 2nd March 2017 • Construction JV plant on schedule, commercial start-up planned for H2 2018 • First PLA from pilot plant (1 kT) in December 2017 • Offices, laboratory, control room operational • Restart upg
Slide 5: FY 2017 Financial Results
FY 2017 Financial Results 5 © 7/3/2018
Slide 6: Profit & Loss: FY 2017 and Q4
Profit & Loss: FY 2017 and Q4 YTD YTD Q4 Q4 • EBITDA excl. one-off items -3.5 % in 2017 € million 2017 2016 % 2017 2016 % through: Organic Net Sales • Lower volumes Ingredient Solutions 888.6 889.6 -0.2% 224.9 221.9 1.3% • Price/mix improvements Innovation Platforms 19.4 21.7 -10.5% 2.2 4.2 -46.9% •
Slide 7: Sales Growth per segment in FY/Q4 2017
Sales Growth per segment in FY/Q4 2017 Total growth Acquisitions Total growth Currency at constant /(Divestmen Organic Price/Mix Volume currency ts) YTD 2017 vs 2016 Ingredient Solutions -2.2% -1.3% -0.9% -0.7% -0.2% 1.7% -1.9% - Food -4.3% -1.3% -3.0% -1.0% -2.0% 1.7% -3.7% - Biochemicals 4.5% -1.3
Slide 8: Ingredient Solutions
Ingredient Solutions FY FY Q4 Q4 € million 2017 2016 2017 2016 • Organic sales growth in 2017: - 0.2% Net Sales 870.2 889.6 207.3 221.9 • Q4: +1.3% Organic growth -0.2% -1.1% 1.3% -1.9% • EBITDA margin increase to 19.9% (2016: EBITDA excl. one-off items 172.9 176.5 38.8 38.9 19.8%) EBITDA % 19.9% 19
Slide 9: Business Segment Food
Business Segment Food FY FY Q4 Q4 2017 key items € million 2017 2016 2017 2016 • Organic sales growth of -2.0% Net Sales 647.7 676.6 152.1 169.5 Organic growth -2.0% -1.9% -1.7% -2.5% • Margin decrease from higher input costs, lower volumes partly offset by EBITDA excl. one-off items 121.3 127.8 26.
Slide 10: Business Segment Biochemicals
Business Segment Biochemicals FY FY Q4 Q4 2017 key items € million 2017 2016 2017 2016 Net Sales 222.5 213.0 55.2 52.4 • Organic sales growth of 5.8% Organic growth 5.8% 1.8% 11.1% -0.4% • Margin increase from higher input costs more than offset by better EBITDA excl. one-off items 51.6 48.7 12.8 10
Slide 11: Innovation Platforms
Innovation Platforms 2017 key items FY FY Q4 Q4 € million 2017 2016 2017 2016 • Lactide/PLA sales no longer Net Sales 21.5 21.7 3.9 4.2 reported in Innovation Platforms Organic growth -10.5% -3.2% -46.9% -54.0% from March onwards EBITDA excl. one-off items (8.8) (6.4) (4.6) (3.6) EBITDA % -40.9% -29
Slide 12: EBITDA bridge 2017
EBITDA bridge 2017 €M 180 0.6 3.3 0.7 0.5 6.4 • Organic decline mostly due to 160 8.2 2.9 lower volumes in Bakery 140 volumes 120 100 Biobased Ingredients • Main price/mix components: 80 170.1 167.0 164.1 170.5 • Higher input costs 60 • Business mix improvement in 40 Food and Biochemicals 20 • Cost
Slide 13: Net debt bridge 2017
Net debt bridge 2017 €M 80.0 137.8 • Net debt/EBITDA ratio 40.0 12.3 increased to 1.0x (2016: 0.6x) 0.6X 7.8 1.0X 0.0 • Net debt position of € 162.2M 45.5 -40.0 98.0 per end of 2017 -80.0 162.2 60.5 -120.0 25.0 • Operating Working Capital 30.4 13.6 -160.0 17.6 • Increased by € 12.3M 16.5 -200.0 • WC
Slide 14: Free Cash Flow
Free Cash Flow 150 Rolling 12 months 100 69 72 55 126 123 118 50 24 110 101 48 67 75 57 24 34 € mln 0 -7 -51 -55 -58 -51 -52 -69 -30 -74 -50 -35 -87 -94 -100 -150 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Operating cash flow Investment cash flow Free cash flow Free Cash
Slide 15: Operating Working capital
Operating Working capital Days 120 69 70 69 69 100 59 63 72 63 80 43 42 44 46 43 39 38 44 60 40 58 55 52 56 55 51 55 50 20 0 -27 -28 -30 -23 -34 -32 -31 -33 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY 2016 H1 2017 H2 2017 Inventory days Trade receivables (DSO) Trade payables (DPO) • Operati
Slide 16: Capital Expenditures
Capital Expenditures €M 80 70 € 62.5M € 61.7M • 2017 Capex: EUR 49.4M 60 7.6 € 50.0M € 49.4M 20.2 50 1.8 4.7 40 15.0 • Major capex projects 30 20 42.3 54.1 42.9 • PGME emulsifier capability 35.0 10 • Vinegar powder 0 2010 2011 2012 2013 2014 2015 2016 2017 Ingredient Solutions Innovation Platforms E
Slide 17: Dividend
Dividend Progressive regular dividend policy • Ambition to annually pay out a stable to gradually increasing absolute dividend amount per share Proposed regular dividend • All cash € 0.56/share (2016: € 0.56/share) • 41% pay-out ratio Timing • Dividend proposal to be approved by AGM: 25 May 2018 • E
Slide 18: Outlook FY 2018
Outlook FY 2018* • Ingredient Solutions: • Sales growth in 2-4% range. Food 1-3%, Biochemicals 3-10% • EBITDA margin >19% • Innovation Platforms • Startup Total Corbion PLA JV plant in H2 • Higher fixed cost level due to restart Peoria plant (Algae Ingredients) • EBITDA loss including proportionatel
Slide 19: Corbion
> Corbion
Slide 20: Restated historical EBITDAs
Restated historical EBITDAs EBITDA (€ million) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Comments Ingredient Solutions Food 30.6 35.3 33.8 28.2 33.8 30.9 30.6 26.1 Biochem 13.1 13.2 11.7 10.6 15.6 10.9 12.3 12.8 Total 43.7 48.5 45.5 38.8 49.4 41.8 42.9 38.9 Unchanged Innovation Platforms Total 0.1 (2.