Corbion Nv · EURONEXT:CRBN
Corbion Nv — Investor Day (2013)
21 slides from Corbion Nv's investor day presentation, 2013
Slide 1: Financials
FINANCIALS KOOS KRAMER
Slide 2: Financial strategy supports operational strategy
Financial strategy supports operational strategy 2
Slide 3: Operational History
Operational History Excluding * 2012 2012 Sales CAGR '07 -'12 EBITDA % EBITDA % Biobased Food Ingredients 5.3% 18.4% 18.4% Biochemicals 7.8% 10.4% 14.2% Corbion 5.6% 13.4% 14.3% * LT Innovation projects costs EBITDA effect in 2012 € 6.6 million: PLA /Biomass/Gypsum Free production/New Molecules Sale
Slide 4: Innovation Investment Increase to support long term growth
Innovation Investment Increase to support long term growth We expect Innovation investments to increase by ~€ 5 million annually, especially for new molecules 4
Slide 5: Central Costs Corbion reduced
Central Costs Corbion reduced Central Costs developments • Different organization with integrated supply chain, R&D and shared services • Size of “CSM” head office adjusted to match new company • FTE’s at head office in 2011 and 2012 were 58 and 56 respectively • Total FTEs will be further reduced b
Slide 6: Sales Targets
Sales Targets CAGR Targets 2007-2012 2013-2016 Sales growth Biobased Food Ingredients 5.3% 3-5% Biochemicals 7.8% 15-20% Corbion 5.6% 6-9% Major initiatives that should lead to 6-9% average growth (mix/volume driven) are • PLA, we expect to sign multiple contracts in planning period • Focus on the F
Slide 7: EBITDA Targets
EBITDA Targets Actual Target 2012 2016 EBITDA as % of sales Biobased Food Ingredients 18.4% Biochemicals 10.4% Corbion 13.4% >15% Factors driving the increased EBITDA% • Higher utilization of our factories, due to increased sales growth • New products delivering higher margins • Cost reductions in t
Slide 8: Financial strategy supports operational strategy
Financial strategy supports operational strategy 8
Slide 9: Capital Expenditure History
Capital Expenditure History Large capital expenditures realized in time & on budget • 2007 Lactic Acid Plant Thailand € 95 million • 2011 Lactide Plant Thailand € 45 million Average annual maintenance capex over the period approximately € 10 million 9
Slide 10: Capital Expenditures required for growth
Capital Expenditures required for growth Reasons for increased capital expenditures • Support growth of 6-9% CAGR, especially LA capacity will require extension • Innovations into new molecules & ferments • Increase flexibility in usage of raw materials • Reduce production costs Hurdle Rate for NPV
Slide 11: M&A to support Strategy
M&A to support Strategy Criteria for bolt-on M&A • Support our strategy • Be close to our core technologies and markets • If geographical, should have commonalities with our core markets or to follow our important customers • Meet NPV hurdle rate of WACC + safety margin Pipeline of acquisition candi
Slide 12: Financial strategy supports operational strategy
Financial strategy supports operational strategy 12
Slide 13: Special return + dividend policy
Special return + dividend policy • We intend to return € 250 million to shareholders in 2013 initially via a special dividend of € 0.70 per share (€ 50 million) and the remainder as an open market share buy back. Details of the share buy back will follow shortly after closure of the bakery divestmen
Slide 14: Financial strategy supports operational strategy
Financial strategy supports operational strategy 14
Slide 15: Sources & Uses of Cash 2013
Sources & Uses of Cash 2013 Net Debt Year end 2013 around zero 1000 200. Proceeds #08 Bakery Divestment m= One-off shareholder 700 return = m Debt Repayment a © Pensions (not divested) m Divestment costs 400 m Dividend 2012 300. ee = Capital expenditures Source: Company data cash: in cash out fA © C
Slide 16: Net Debt/EBITDA Forecasts
Net Debt/EBITDA Forecasts • Based on: - Growth in sales of 6-9% CAGR - EBITDA margin > 15% in 2016 - Capacity/cost reduction capital expenditures of € 100 million annually - Bolt-on acquisitions - Innovation expenses relatively high, early in the planning period • Net Debt/EBITDA should stay ~1.5 ti
Slide 17: PLA financial planning
PLA financial planning • If contracts for PLA will fully utilize our Lactides production capacity earlier than expected, additional capital expenditures will be required. • Expected additional Capital expenditures will be ~€ 150 to € 200 million for LA + Lactide • If funded with debt, this will temp
Slide 18: Keeping track of progress
Keeping track of progress • Every quarter: Sales & EBITDA per division • Every half-year additionally: - Full P&L, balance sheet & cash flow - Developments in PLA - Progress & costs long term R&D projects - Overview major capital expenditures • Yearly review of excess cash position 18
Slide 19: Key takeaways
Key takeaways • Corbion, a company with: - strong market positions in attractive markets - a solid knowledge and asset base - a financially sound starting point • Enhancing its core capabilities and competitive advantage via: - Investments in the development of new and innovative processes and produ
Slide 20: Appendix
Appendix 20
Slide 21: Historical pro-forma results
Historical pro-forma results 2007 2008 2009 2010 2011 2012 Revenues Biobased Food Ingredients 447.8 473.3 513.5 553.5 545.7 579.8 Biochemicals 119.6 128.5 129.9 151.3 168.6 174.0 Total 567.4 601.8 643.4 704.8 714.4 753.8 EBITDA before one-off costs Biobased Food Ingredients 64.8 59.3 84.2 121.6 105.