Corbion Nv · EURONEXT:CRBN
Corbion Nv — FY 2021 Earnings Presentation
28 slides from Corbion Nv's earnings presentation, Feb 25, 2022
Slide 1: FY/Q4 2021 Results
FY/Q4 2021 RESULTS OLIVIER RIGAUD (CEO) 25/02/2022 EDDY VAN RHEDE VAN DER KLOOT (CFO)
Slide 2: Corbion results 2021
FY 2021 RESULTS Corbion results 2021 Olivier Rigaud Eddy van Rhede van der Kloot CEO CFO • Business performance • Financial performance • Outlook 2 25/02/2022
Slide 3: FY 2021 Key Points
FY 2021 RESULTS FY 2021 Key Points • Organic sales growth core activities 15.0% • Growth driven by all three business units • Adjusted EBITDA: €135.8M (12.7% margin), organic growth -7.6% • Firm pricing actions started in H2 2021 • Continued high investment level to support growth • Sustainability p
Slide 4: Sustainable Food Solutions
FY 2021 RESULTS Sustainable Food Solutions • Net Sales Organic growth of 10.8% • Preservation: • Natural preservatives continue to gain share • Strongest growth in new products • Functional Systems: • Higher than historical average win-rate • Developing in adjacent categories such as Dairy • Single
Slide 5: Lactic Acid & Specialties
FY 2021 RESULTS Lactic Acid & Specialties • Net Sales Organic growth of 17.0% • High growth in lactic acid deliveries to Total Corbion PLA joint venture • Green solvents sales grew as electronics segment more than compensated pressure in agrochemicals segment • Expanded production capacity completed
Slide 6: Incubator
FY 2021 RESULTS Incubator • Net sales increased organically by 147.8% • Sales growth driven by AlgaPrime DHA (omega-3) • Aquaculture sector is becoming more receptive of using sustainable feed ingredients • Expanded into multiple leading aquaculture feed companies • Algae strain efficiency and highe
Slide 7: Major growth investment projects – algae fermentation & natural ferments
FY 2021 RESULTS Major growth investment projects – algae fermentation & natural ferments • Capacity expansion in Orindiuva, Brazil – Algae fermentation – € 10-15M • Capacity available end 2022 to support 2023 growth • Debottlenecking fermentation capacity • Improving operational efficiency • SFS pro
Slide 8: Major investment project – Lactic Acid in Thailand
FY 2021 RESULTS Major investment project – Lactic Acid in Thailand • New lactic acid plant in Rayong, Thailand. Capex: $ 230M • Status • Timing on track for startup in 2023 • Construction is currently switching from civil engineering towards erecting first equipment • Training of operators started •
Slide 9: Sustainability progress
FY 2021 RESULTS Sustainability progress Preserving Preserving Preserving food & food health the planet • Surpassed our 2025 GHG emission production reduction target in 2021 • Updated 2030 target in the course of 2022 CDP Climate/supplier engagement A (was A) • New net zero GHG emissions CDP Climate/
Slide 10: Financial performance
FY 2021 RESULTS Financial performance 10 25/02/2022
Slide 11: Profit and Loss
FY 2021 RESULTS Profit and Loss YTD YTD Q4 Q4 € million 2021 2020 % 2021 2020 % Net Sales 1,070.8 986.5 8.5% 273.2 245.3 11.4% Adjusted EBITDA 135.8 158.8 -14.5% 22.3 30.4 -26.6% Adjusted EBITDA % 12.7% 16.1% 8.2% 12.4% Adjusted Depreciation & Amortization (64.1) (60.3) 6.3% Adjustments 10.3 5.6 83.
Slide 12: Firm pricing actions implemented
FY 2021 RESULTS Firm pricing actions implemented • We expect full compensation of higher input costs Additional raw materials, energy, packaging, freight increase • In aggregate, input costs in 2021 and 2022 rise by € 165M (of € million 2021 vs 2020 2022 vs 2021 Cumulative which € 130M in Core) Core
Slide 13: Sustainable Food Solutions
FY 2021 RESULTS Sustainable Food Solutions € million YTD 2021 YTD 2020 Q4 2021 Q4 2020 • Net sales organic growth of 10.8% Net sales 584.2 545.8 148.6 140.1 Organic growth 10.8% 6.8% 3.1% 11.8% • Adjusted EBITDA margin from 17.0% to 11.9% • Rapidly rising input costs not yet reflected in sales price
Slide 14: Lactic Acid & Specialties
FY 2021 RESULTS Lactic Acid & Specialties € million YTD 2021 YTD 2020 Q4 2021 Q4 2020 • Net sales organic growth of 17.0% Net sales 312.3 275.8 80.2 64.4 Organic growth 17.0% 6.2% 25.0% 4.0% • Adjusted EBITDA margin from 22.1% to 19.4% • Rapidly rising input costs not yet reflected in sales price Ad
Slide 15: Incubator
FY 2021 RESULTS Incubator € million YTD 2021 YTD 2020 Q4 2021 Q4 2020 • Net sales organic growth of 147.8% Net sales 30.7 13.4 7.8 4.5 • Sales growth driven by AlgaPrime DHA (omega-3) Organic growth 147.8% 33.9% 68.9% 162.5% • Adjusted EBITDA loss declined from € -18.4 million to € -11.7 Adjusted EB
Slide 16: Total Corbion PLA joint venture
FY 2021 RESULTS Total Corbion PLA joint venture € million * YTD 2021 YTD 2020 Q4 2021 Q4 2020 • Net Sales organic growth of 28.1% through combination of price Net sales 159.8 129.3 47.2 33.2 and volume growth EBITDA 54.6 47.7 14.8 12.7 EBITDA margin 34.2% 36.9% 31.4% 38.3% • EBITDA margin lower as h
Slide 17: Non-core activities
FY 2021 RESULTS Non-core activities € million YTD 2021 YTD 2020 Q4 2021 Q4 2020 • Net Sales organic growth of 12.8% in Emulsifiers through market Net sales 143.6 151.5 36.6 36.3 share gains Organic growth 12.8% -1.1% 12.9% 1.1% • Emulsifiers is now sole remaining active business in non-core activiti
Slide 18: Net debt bridge 2021
FY 2021 RESULTS Net debt bridge 2021 • Divestment (in)tangible assets • Plot of land Breda, NL (Jan ’21) • Frozen dough activities (Jan ’21) 284.2 108.6 461.0 • Covenant net debt/covenant EBITDA increased 86.2 from 2.1x to 2.6x • covenant net debt/covenant EBITDA is 3.75x 28.8 10.5 148.7 9.3 33.0 25
Slide 19: Free Cash Flow
FY 2021 RESULTS Free Cash Flow 150 Rolling 12 months • Significant investment program 100 • New lactic acid plant in Thailand 118 120 114 109 50 100 105 107 97 32 31 • Lower operating cashflow 24 26 12 10 22 • Increased working capital € mln 0 5 -1 • inflationary input costs -65 -80 -77 -88 -50 -94
Slide 20: Outlook 2022
FY 2021 RESULTS Outlook 2022 • Net Sales Organic growth core activities 15-20% • Reach EBITDA break-even in the AlgaPrime DHA business (algae-derived omega-3) • Input costs: Successfully increased prices to fully compensate for additional input costs • Input cost expected to continue to rise; might
Slide 21: Annex
FY 2021 RESULTS Annex 21 25/02/2022
Slide 22: Net sales and Adjusted EBITDA: YTD/Q4 2021
FY 2021 RESULTS Net sales and Adjusted EBITDA: YTD/Q4 2021 € million YTD 2021 YTD 2020 Q4 2021 Q4 2020 Growth YTD Net sales Core 927.2 835.0 236.6 209.0 11.0% - Sustainable Food Solutions 584.2 545.8 148.6 140.1 7.0% - Lactic Acid & Specialties 312.3 275.8 80.2 64.4 13.2% - Incubator 30.7 13.4 7.8 4
Slide 23: Sales Growth per segment in YTD/Q4 2021
FY 2021 RESULTS Sales Growth per segment in YTD/Q4 2021 Acquisitions/ Net sales Volume Price/Mix Organic Currency Total growth (Divestments) YTD 2021 vs YTD 2020 Core 9.6% 4.9% 15.0% -4.1% 0.1% 11.0% - Sustainable Food Solutions 4.5% 6.0% 10.8% -3.9% 0.1% 7.0% - Lactic Acid & Specialties 14.4% 2.3%
Slide 24: Core Adjusted EBITDA bridge YTD 2021
FY 2021 RESULTS Core Adjusted EBITDA bridge YTD 2021 FTE increase • Volume growth in all 3 business segments 200 costs, 19.8 38.3 Other, • Pricing and mix 8.3 21.6 150 • Negative mix as lactic acid sales to PLA JV increased • Price increases partly offsetting input cost inflation € mln 41.4 5.2 0.6
Slide 25: Core Adjusted EBITDA bridge Q4 2021
FY 2021 RESULTS Core Adjusted EBITDA bridge Q4 2021 30 3.6 1.8 3.0 0.6 6.3 € mln 15 25.3 20.8 0 Adj. EBITDA Q4 Volumes Pricing and mix Fixed costs Currency Acquisitions Adj. EBITDA Q4 2020 Core impact 2021 Core 25 25/02/2022
Slide 26: Investments
FY 2021 RESULTS Investments • Total capex 2021 € 165M Investments • Recurring capex € 100M (including expansion projects) € mln • New Lactic Acid plant (Thailand) € 64.9M 200 • Recurring capex includes 11 160 • Lactic acid debottlenecking € 30.6M 65 • ERP investment € 7.3M 120 36 80 61 53 10 • Acqui
Slide 27: Working capital (days)
FY 2021 RESULTS Working capital (days) • Increased Inventory days mainly caused 140 87 (83) by inflationary input costs and safety 120 74 77 82 4 stock build up 77 68 81 68 68 100 51 47 47 46 45 50 80 46 49 43 • Q4 one-off temporary impact due to 60 intercompany sales elimination Days 40 72 55 56 63
Slide 28: Investor relations
Investor relations Jeroen.van.Harten@corbion.com www.corbion.com +31 20 590 6293