Corbion Nv · EURONEXT:CRBN
Corbion Nv — FY2023 Earnings Presentation
30 slides from Corbion Nv's earnings presentation, Mar 1, 2024
Slide 1: FY 2023 Results
FY 2023 RESULTS OLIVIER RIGAUD (CEO) EDDY VAN RHEDE VAN DER KLOOT (CFO)
Slide 2: Corbion results FY 2023
FY 2023 RESULTS Corbion results FY 2023 Olivier Rigaud Eddy van Rhede van der Kloot CEO CFO • Business performance • Financial performance • Outlook 2 01/03/2024
Slide 3: 2023 performance in line with guidance
FY 2023 RESULTS 2023 performance in line with guidance Actuals FY 2023 Organic Sales growth Core activities 3.0% Organic EBITDA growth Core activities 16.2% Free Cash Flow €18.6M Covenant Net debt/Covenant EBITDA 3.1x Sales €1.443.8M Adjusted EBITDA €191.8M Adjusted EBITDA (% of sales) 13.3% 3 01/03
Slide 4: Macro-economic environment we are operating in
FY 2023 RESULTS Macro-economic environment we are operating in Customer destocking concluded • Significant customer destocking following supply chain normalization during 2023 Continued soft macro-economic climate • Impacting some biochemical markets, like semiconductors, agrochemicals and PLA (no s
Slide 5: Sustainable Food Solutions – growth in adjacencies
FY 2023 RESULTS Sustainable Food Solutions – growth in adjacencies Business environment 1Q23 2Q23 3Q23 4Q23 • Supply chain destocking concluded in Q4 2023 • Soft consumer demand in line with macro-conditions • Q4: improvement in volume/mix versus previous quarters Volume/mix growth % Growth initiati
Slide 6: Lactic Acid & Specialties – footprint optimization
FY 2023 RESULTS Lactic Acid & Specialties – footprint optimization Business environment 1Q23 2Q23 3Q23 4Q23 • Strong Q4: improvement in volume/mix versus previous quarters • No recovery yet from cyclical downturn in the semiconductor industry • Lower full year lactic acid supply to PLA JV Volume/mix
Slide 7: Algae Ingredients - increased value creation from existing facility
FY 2023 RESULTS Algae Ingredients - increased value creation from existing facility Business environment 15.7% • Growing omega-3 demand and ongoing fish oil scarcity • Sales growth over 50%, surpassing the € 100 million landmark 3.6% 1H23 2H23 Growth initiatives Adjusted EBITDA margin • Aquaculture:
Slide 8: Good progress on Sustainability in 2023
FY 2023 RESULTS Good progress on Sustainability in 2023 1.5°C % % of of net revenue sales Absolute CO2 Products Products Verified Total contributing reduction covered by covered by responsibly Renewable Recordable to to SDG SDG 2.2. 3. 3 scope I&II Life Cycle Social Value sourced cane electricity In
Slide 9: Financial performance
FY 2023 RESULTS Financial performance 9 01/03/2024
Slide 10: Sales & Adjusted EBITDA FY 2023
FY 2023 RESULTS Sales & Adjusted EBITDA FY 2023 Organic Organic Sales EBITDA growth growth Core Core +3.0% +16.2% 1900 Sales (€ mln) 1700 Adjusted EBITDA (€ mln) 36.9 24.2 1500 19.0 200 32.0 5.2 11.6 1300 150 1100 1,457.9 100 1,443.8 900 184.4 191.8 50 700 500 0 Sales Core Non-core Forex Sales EBITD
Slide 11: Profit and Loss
FY 2023 RESULTS Profit and Loss YTD YTD Q4 Q4 € million 2023 2022 % 2023 2022 % Sales 1,443.8 1,457.9 -1.0% 352.8 377.5 -6.5% Adjusted EBITDA 191.8 184.4 4.0% 49.0 41.6 17.8% Adjusted EBITDA % 13.3% 12.6% 13.9% 11.0% Adjusted Depreciation & Amortization (84.6) (76.4) (22.7) (20.5) Adjustments 10.0 2
Slide 12: Sustainable Food Solutions
FY 2023 RESULTS Sustainable Food Solutions € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 Organic Sales growth of 0.7% for the full year 2023 Sales 768.7 780.0 188.8 200.9 • Positive pricing impact +5.4% to compensate for higher input costs Organic growth 0.7% 21.5% -2.1% 23.3% • Volume/mix -4.7% drive
Slide 13: Lactic Acid & Specialties
FY 2023 RESULTS Lactic Acid & Specialties € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 Organic Sales growth of -2.0% for the full year 2023 Sales 383.9 400.1 91.6 99.5 • Positive pricing impact +5.4% to compensate for higher input costs Organic growth -2.0% 20.4% -4.3% 18.0% • Volume/mix -7.4% driven
Slide 14: Algae Ingredients
FY 2023 RESULTS Algae Ingredients € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 Organic Sales growth of 53.5% for the full year 2023 Sales 111.4 74.3 31.3 26.1 • Surpassing landmark of € 100 million in sales Organic growth 53.5% 115.3% 25.3% 197.4% • Strong volume/mix growth of 42.5% with a price incr
Slide 15: Incubator
FY 2023 RESULTS Incubator € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 • The Adjusted EBITDA of € -8.5 million reflecting investments in Adjusted EBITDA (8.5) (9.2) (1.6) (2.6) various programs as outlined at the December 2022 Capital Markets Day % of core Sales -0.7% -0.7% -0.5% -0.8% • Costs associ
Slide 16: TotalEnergies Corbion joint venture
FY 2023 RESULTS TotalEnergies Corbion joint venture € million * YTD 2023 YTD 2022 Q4 2023 Q4 2022 Organic Sales declined by -26.9% for the full year 2023 Sales 118.1 165.8 31.6 35.0 • Volume erosion stabilized, with early signs of recovery visible EBITDA 19.3 42.8 6.9 2.2 • Stable market share EBITD
Slide 17: Non-core activities
FY 2023 RESULTS Non-core activities € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 Organic Sales declined by –9.3% for the full year 2023 Sales 179.8 203.5 41.1 51.0 • Volume/mix of -17.3%, partly offset by price increases of 8.0% Organic growth -9.3% 26.1% -15.1% 24.0% Adjusted EBITDA margin at 15.6%
Slide 18: Free Cash Flow
FY 2023 RESULTS Free Cash Flow • Free Cash Flows (FCF) positive since Q2 2023 200 Rolling 12 months 100 Free Cash Flow per quarter 150 50 50 61 69 26 41 100 0 6 165 (5) (35) (35) (18) (59) 105 114 107 109 -50 50 97 77 (63) 26 32 31 39 19 -100 10 22 25 0 -1 Q1-23 Q2-23 Q3-23 Q4-23 € mln Operating Cas
Slide 19: Dividend proposal
FY 2023 RESULTS Dividend proposal Progressive regular dividend policy • Ambition to annually pay out a stable to gradually increasing absolute dividend amount per share Proposed regular dividend • All cash of € 0.61 per share, an increase of 9% vs prior year reflecting the positive free cash flow mo
Slide 20: Outlook
FY 2023 RESULTS Outlook Olivier Rigaud CEO 20 01/03/2024
Slide 21: Outlook 2024
FY 2023 RESULTS Outlook 2024 Organic sales growth core activities FY 2024 • Volume/Mix growth anticipated to be in the range of 2~6% • Ongoing growth in Health & Nutrition • Continuation of upward momentum in Food • Low to mid-single digit negative pricing in Functional Ingredients & Solutions follo
Slide 22: Annex
FY 2023 RESULTS Annex 22 01/03/2024
Slide 23: Sales growth per segment in FY/Q4 2023
FY 2023 RESULTS Sales growth per segment in FY/Q4 2023 Acquisitions/ Sales Volume/Mix Price Organic Currency Total growth (Divestments) YTD 2023 vs YTD 2022 Core -2.8% 5.8% 3.0% -2.2% 0.0% 0.8% - Sustainable Food Solutions -4.7% 5.4% 0.7% -2.1% 0.0% -1.4% - Lactic Acid & Specialties -7.4% 5.4% -2.0%
Slide 24: Sales and Adjusted EBITDA: FY/Q4 2023
FY 2023 RESULTS Sales and Adjusted EBITDA: FY/Q4 2023 € million YTD 2023 YTD 2022 Q4 2023 Q4 2022 Growth YTD Sales Core 1,264.0 1,254.4 311.7 326.5 0.8% - Sustainable Food Solutions 768.7 780.0 188.8 200.9 -1.4% - Lactic Acid & Specialties 383.9 400.1 91.6 99.5 -4.0% - Algae Ingredients 111.4 74.3 3
Slide 25: Core Adjusted EBITDA bridge FY 2023
FY 2023 RESULTS Core Adjusted EBITDA bridge FY 2023 200 7.9 32.1 10.6 150 € mln 100 150.1 163.7 82.0 50 75.6 0 Adj. EBITDA Core FY Vol / mix / pricing Fixed costs Currency impact Adj. EBITDA Core FY 2022 2023 25 01/03/2024
Slide 26: Covenant net debt bridge FY 2023
FY 2023 RESULTS Covenant net debt bridge FY 2023 • Covenant net debt position FY 2023: € 615.7 million (excl. subordinated loans) € mln 601.5 615.7 • Covenant net debt/covenant EBITDA ratio: • 3.1x in December 2023 (H1 2023: 3.4x; Dec 2022: 3.0x) 13.6 151.8 • Positive Free Cash Flows from Q2 onwards
Slide 27: Investments
FY 2023 RESULTS Investments Investments* • Total Capex investments FY 2023 € 128M € mln • Recurring Capex € 79M 240 231 - Maintenance Capex € 46M (incl. ERP investment € 10M) - Expansion Capex € 33M 200 165 104 • New lactic acid plant (Thailand) € 49M 160 128 65 • Expansion capex includes (amongst o
Slide 28: Working capital (days)
FY 2023 RESULTS Working capital (days) • Significant reduction in inventories days 123 124 • Successful management of inventory positions 200 111 113 121 150 54 50 52 53 51 • Trade receivables days stable 100 129 120 132 125 50 115 • Trade payables days reducing 0 • Reduced procurement level in Q4’2
Slide 29: Restatements – new business structure
FY 2023 RESULTS Restatements – new business structure € million 2022 1Q23 2Q23 3Q23 4Q23 2023 Sales Core 1,254.4 312.5 329.2 310.6 311.7 1,264.0 - Health & Nutrition 193.2 54.1 68.1 60.3 62.8 245.3 - Functional Ingredients & Solutions 1,061.2 258.4 261.1 250.3 248.9 1,018.7 Non-core 203.5 47.1 49.2
Slide 30: Investor relations
Investor relations Peter.Kazius@corbion.com www.corbion.com +31 20 590 6242 30 01/03/2024