Corbion Nv · EURONEXT:CRBN
Corbion Nv — H1 2020 Earnings Presentation
14 slides from Corbion Nv's earnings presentation, Aug 7, 2020
Slide 1: H1 2020 Results
H1 2020 RESULTS OLIVIER RIGAUD (CEO) / EDDY VAN 7/8/2020 Photo © Total Corbion PLA RHEDE VAN DER KLOOT (CFO)
Slide 2: Profit and Loss: H1 2020
Profit and Loss: H1 2020 YTD YTD Q2 Q2 € million 2020 2019 2020 2019 % Net Sales 492.2 471.9 4.3% 235.9 243.0 -2.9% Adjusted EBITDA 83.8 71.4 17.4% 39.4 36.5 7.9% Depreciation & Amortization (32.3) (28.4) 13.7% (16.4) (14.5) 13.1% Adjustments (5.8) 3.4 (4.7) 4.3 EBIT 45.7 46.4 -1.5% 18.3 26.3 -30.4%
Slide 3: Sales Growth per segment in H1/Q2 2020
Sales Growth per segment in H1/Q2 2020 Total growth at Acquisitions/ Net sales Total growth Currency constant (Divestments Organic Price/Mix Volume currency ) YTD 2020 vs YTD 2019 Core 6.9% 0.0% 6.9% 1.6% 5.3% -1.5% 6.9% - Sustainable Food Solutions 5.7% -0.2% 5.9% 2.4% 3.5% 1.0% 2.5% - Lactic Acid
Slide 4: Sustainable Food Solutions
Sustainable Food Solutions YTD YTD Q2 Q2 • Preservation performed well € million 2020 2019 2020 2019 throughout H1, continuously driven Net sales 267.6 253.1 131.4 133.0 by trend to natural preservatives Organic growth 3.5% -0.8% Adjusted EBITDA 47.0 44.2 22.5 23.1 • Functional Systems impacted by A
Slide 5: Lactic Acid & Specialties
Lactic Acid & Specialties YTD YTD Q4 Q4 • All major product categories grew € million 2020 2019 2020 2019 in H1 and Q2 except for Net sales 141.4 129.5 64.7 63.8 biopolymers Organic growth 7.8% 0.8% Adjusted EBITDA 33.5 29.5 14.3 14.0 • Growth in Q2 limited due to a Adjusted EBITDA % 23.7% 22.8% 22.
Slide 6: Incubator & Non-core activities
Incubator & Non-core activities Incubator YTD YTD Q2 Q2 • Sales growth driven by higher AlgaPrime € million 2020 2019 2020 2019 DHA (omega-3 sales) Net sales 5.4 4.9 3.1 3.5 Organic growth 36.7% 17.2% • Customer development slower than expected due to COVID-19 Adjusted EBITDA (9.0) (14.2) (3.3) (6.5
Slide 7: EBITDA bridge YTD 2020
EBITDA bridge YTD 2020 80 12.9 1.2 0.4 0.6 70 3.2 60 50 € mln 40 71.5 30 59.5 20 10 0 Adj. EBITDA Core YTD Volumes Pricing and mix Cos ts Currency impact Acquisitions Adj. EBITDA Core YTD 2019 2020 7 © 7/8/2019
Slide 8: Net debt bridge FY 2020
8 © 7/8/2019 € mln Ne t de b te nd 20 19 303.3 2.0x Ca s h inc om Op e 70.1 er at in gW or Net debt bridge FY 2020 kin g Ca pit a l Ot 28.3 he r W or kin g Ca pit al 13.7 Ca pe x 40.8 Ot he r 0.3 Ne t de b tH 1 20 20 316.3 2.0x
Slide 9: Free Cash Flow
Free Cash Flow Rolling 12 months 150 100 72 123 118 120 114 50 101 48 100 105 107 24 26 12 10 € mln 0 5 -1 -51 -52 -88 -80 -50 -94 -105 -114 -106 -100 -150 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 Operating cash flow Investment cash flow Free cash flow 9 © 7/8/2019
Slide 10: Operating Working Capital
Operating Working Capital 120 74 77 77 68 80 69 69 100 72 47 47 44 80 46 49 43 44 44 60 40 Days 56 63 63 59 62 55 51 55 20 0 -23 -28 -27 -30 -33 -36 -32 -34 -20 -40 -60 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019 FY 2019 FY 2020 Inventory days Trade receivables (DSO) Trade payables (DPO) 10 © 7/
Slide 11: Capital Expenditures
Capital Expenditures • Largest expansion capex in H1 90 2020 related to capacity 80 expansion in Thailand 12 70 Thailand • Capex for 2020 expected to by € gypsum free 60 plant 80-90M, of which € 10M related 8 ERP to new Thailand lactic acid plant 50 € mln 48 40 Expansion 24 30 2 5 Maintenance 20 18
Slide 12: Outlook FY 2020
Outlook FY 2020 • Greatest sales volatility seems behind us, but still significant COVID-19 uncertainty • Second order effects on economic climate and Corbion business development difficult to estimate 2020 guidance for core activities: • Organic net sales growth in the 4-7% range • Adjusted EBITDA
Slide 13: Slide 13
Slide 14: EBITDA bridge Q2 2020
EBITDA bridge Q2 2020 40 0.8 0.3 3.5 0.6 30 1.1 € mln 20 33.5 30.6 10 0 Adj. EBITDA Q2 201 9 Volumes Pricing and mix Cos ts Currency impact Acquisitions Adj. EBITDA Q2 202 0 Core Core 14 © 7/8/2019