Slide 1: 2016 Results
2016 RESULTS TJERK DE RUITER, EDDY VAN RHEDE 6/3/2017 VAN DER KLOOT
Slide 2: Highlights FY 2016 results
Highlights FY 2016 results • Organic net sales decline of 1.2%, mostly volume driven • Net sales decline of 0.8% • Food: Mix improvements at the expense of volume declines • Biochemicals: Strong performance in Medical & Electronics, offset by Agrochemicals • EBITDA excluding one-off items EBITDA € 1
Slide 3: PLA update
PLA update • 50/50 Joint-venture with Total established on 2 March 2017 • All material permits obtained, on schedule • Investments on track • >50% of $ 100M already committed 3 © 6/3/2017
Slide 4: Emulsifiers – Corbion's leading market position in North America
Emulsifiers – Corbion’s leading market position in North America • Corbion pioneered lactic acid based Stearol Corbion’s market reach in Lactylates in 1953 in the US North American emulsifier market (in $ value, %) • #1 emulsifier supplier in North American Bakery Not active (lecithin, segment; #2 o
Slide 5: Emulsifiers – 2 investments in 2015-2017
Emulsifiers –2 investments in 2015-2017 From PHO to non-PHO (trans-fat free) Expand in other emulsifiers • Corbion first to complete portfolio • PGME is Propylene Glycol Esters of Fatty Acids reformulation, well ahead of FDA revoking • Aeration in baked goods, whipped cream, (June 2018) toppings in
Slide 6: Increasing sustainability focus
Increasing sustainability focus • Corbion's products are inherently circular and a critical enabler of the circular economy Responsible sourcing Resource-efficient operations Sustainable solutions 6 © 6/3/2017
Slide 7: FY 2016 Financial Results
FY 2016 Financial Results 7 © 6/3/2017
Slide 8: Profit & Loss: FY 2016 and Q4
Profit & Loss: FY 2016 and Q4 YTD YTD Q4 Q4 • EBITDA excl. one-off items growth 13.2% in € million 2016 2015 % 2016 2015 % 2016 supported by: Net Sales 911.3 918.3 -0.8% 226.1 230.4 -1.9% • Lower input costs EBITDA excl. one-off items 170.1 150.3 13.2% 35.3 33.2 6.3% • Price/mix improvements EBITDA
Slide 9: Sales Growth per segment in FY/Q4 2016
Sales Growth per segment in FY/Q4 2016 Total growth Total growth Currency at constant Acquisitions Organic Price/Mix Volume currency YTD 2016 vs 2015 Biobased Ingredients -0.7% 0.2% -0.9% 0.2% -1.1% 1.3% -2.4% - Food -1.6% 0.1% -1.7% 0.2% -1.9% 1.5% -3.4% - Biochemicals 2.4% 0.5% 1.9% 0.1% 1.8% 0.1%
Slide 10: Biobased Ingredients
10 Biobased Ingredients € million YTD 2016 YTD 2015 Q4 2016 Q4 2015 • Organic sales growth in 2016: - 1.1% Net Sales 889.6 895.9 221.9 221.3 Organic growth -1.1% 3.3% -1.9% 1.8% EBITDA excl. one-off items 176.5 155.0 38.9 35.2 • EBITDA margin increase to 19.8% Margin 19.8% 17.3% 17.5% 15.9% (2015: 1
Slide 11: Business Segment Food
Business Segment Food YTD YTD Q4 Q4 2016 key items € million 2016 2015 2016 2015 • Organic sales growth of -1.9% Net Sales 676.6 687.8 169.5 169.5 Organic growth -1.9% 3.7% -2.5% 2.9% • Margin improvement from improved business mix, lower input costs and EBITDA excl. one-off items 142.5 129.2 32.2 2
Slide 12: Business Segment Biochemicals
Business Segment Biochemicals YTD YTD Q4 Q4 2016 key items € million 2016 2015 2016 2015 Net Sales 213.0 208.1 52.4 51.8 • Organic sales growth of 1.8% Organic growth 1.8% 1.6% -0.4% -1.7% • Significant margin improvement from improved business mix (medical), EBITDA excl. one-off items 53.4 45.5 11.
Slide 13: Biobased Innovations
Biobased Innovations Results 2016 YTD YTD Q4 Q4 € million 2016 2015 2016 2015 • EBITDA loss in 2016 Net Sales 21.7 22.4 4.2 9.1 increased vs 2015 Organic growth -3.2% 106.7% -54.0% 158.2% • Higher lactide/PLA volumes EBITDA excl. one-off items (6.4) (4.7) (3.6) (2.0) at lower avg. prices Margin -29.
Slide 14: PLA financial reporting
PLA financial reporting Sales and costs • Lactic acid sales/costs to PLA joint venture will be reported under Biobased Innovations • Net result related to Lactide and PLA will be reported under Results from joint ventures (after tax, 50%) Cash flow timing • Total SA and Corbion share all capex and c
Slide 15: EBITDA bridge FY 2016
EBITDA bridge FY 2016 200 • Organic growth mostly driven by 180 33.7 5.0 pricing and mix 160 -6.5 -1.5 -1.7 -3.2 • Main price/mix components: 140 -9.2 • Lower input costs 120 • Business mix improvement in Biobased Ingredients 100 Food and Biochemicals 80 170.1 166.9 • Cost level including general in
Slide 16: Net debt bridge FY 2016
Net debt bridge FY 2016 130.0 • Net debt position of € 98.1M per end of 2016 80.0 134.4 -10.8 -1.0 • Net debt/EBITDA ratio of 0.6x 30.0 0.4x 0.6X -55.5 -20.0 • Operating Working Capital -62.1 increased by €10.8M -98.0 -52.5 -70.0 5.1 -50.0 -5.6 • Dividend & additional returns -120.0 to shareholders
Slide 17: Free Cash Flow
Free Cash Flow 150 Rolling 12 months 100 126 123 110 72 68 50 75 55 € mln 57 67 24 34 0 -7 -30 -51 -55 -58 -51 -35 -74 -50 -69 -87 -100 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 Operating cash flow Investment cash flow Free cash flow • Continued improvement in free cash flow 17 © 6/3/2
Slide 18: Operating Working capital
Operating Working capital Days* +8% 120 69 70 68 100 59 63 63 80 43 42 44 43 39 38 60 40 58 55 52 56 55 50 20 0 -34 -32 -31 -27 -28 -30 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY2016 Inventory days Trade receivables (DSO) Trade payables (DPO) • Operating Working Capital (in days) increases
Slide 19: Capital Expenditures
Capital Expenditures 19 80 70 60 € 62.5M € 61.7M Major capex projects in 2016 7.6 € 50.0M 20.2 50 15.0 40 Maintenance 30 54.1 20 42.3 • Non-PHO emulsifier capability 35.0 10 Expansion 0 2010 2011 2012 2013 2014 2015 2016 • Completion of NL acid powder line Biobased Ingredients Biobased Innovations C
Slide 20: Dividend and share buyback
Dividend and share buyback Regular dividend • All cash € 0.56/share (35% pay-out ratio) € 50M Additional shareholder return 2017 • € 25M additional cash dividend: € 0.44/share • € 25M share buyback • Program to commence April 2017 and to be completed before year-end • Purchased shares to be cancelle
Slide 21: Outlook FY 2017
Outlook FY 2017 • Biobased Ingredients sales growth within 2-4% range • Food: Negative sales impact of portfolio optimization to fade out in H1 2017 • Biochemicals: Improved sales growth compared to 2016 • Biobased Innovations: Continued high volatility in quarterly EBITDAs • EBITDA before one-off i
Slide 22: Corbion
> Corbion 873/2017
Slide 23: EBITDA bridge Q4 2016
EBITDA bridge Q4 2016 45 40 8.8 1.2 0.3 1.2 35 -1.6 -3.2 30 -3.4 25 Biobased Ingredients 20 35.3 36.5 33.2 15 10 5 0 23 © 6/3/2017