Slide 1: FY 2018 Results
FY 2018 RESULTS TJERK DE RUITER (CEO) / EDDY VAN 6/3/2019 RHEDE VAN DER KLOOT (CFO)
Slide 2: Highlights FY 2018 results
Highlights FY 2018 results • Organic net sales growth of 3.7% • Net sales growth of 0.6% due to negative currency impact • Food: Organic growth 0.9%. Meat & Other strong, Bakery weak • Biochemicals: Organic growth 4.0%, driven by Pharma/Medical, Electronics, and Chemicals • Innovation Platforms grow
Slide 3: Business overview
Business overview Bakery Stable market Negative impact off-patent enzyme winding down Food Meat Continued strong growth in natural solutions Other Growth in non-bakery emulsifiers and acid powders Ingredient Solutions Pharma/Medical Continued growth in resorbable medical polymers Chemicals Some dece
Slide 4: Lactic acid capacity expansion – Balanced approach
Lactic acid capacity expansion – Balanced approach • Expanding existing plants by 50kT to accommodate PLA-driven demand • Timeline: Mid-2020; ~€ 30M capex • Preparations for new gypsum-free lactic acid plants continues 4 © 6/3/2019
Slide 5: Sustainability – Corbion's small carbon footprint
Sustainability – Corbion’s small carbon footprint • Increased emphasis on GHG emissions Rating C to B highlights Corbion’s small carbon footprint Rating Silver to Gold • Life-Cycle Assessments available for 37% of Corbion products; 50% by end 2020 RSPO 24% -> 41% 5 © 6/3/2019
Slide 6: FY 2018 Financial Results
FY 2018 Financial Results 6 © 6/3/2019
Slide 7: Profit and Loss: FY 2018 and Q4
Profit and Loss: FY 2018 and Q4 € million YTD YTD Q4 Q4 • EBITDA excl. one-off items -19.8% 2018 2017 2018 2017 % (organic growth -5.4%) in FY 2018: Net Sales 897.2 891.7 0.6% 230.8 211.2 9.3% EBITDA excl. one-off items 131.6 164.1 -19.8% 27.2 34.2 -20.5% • Organic sales growth of 3.7% Depreciation
Slide 8: Sales Growth per segment in FY/Q4 2018
Sales Growth per segment in FY/Q4 2018 Total growth Acquisitions/( Total growth Currency at constant Organic Price/Mix Volume Divestments) currency YTD 2018 vs 2017 Ingredient Solutions -2.5% -4.2% 1.7% 0.0% 1.7% -1.2% 2.9% - Food -3.8% -4.7% 0.9% 0.0% 0.9% -1.3% 2.2% - Biochemicals 1.1% -2.9% 4.0%
Slide 9: Ingredient Solutions
Ingredient Solutions YTD YTD Q4 Q4 • Organic sales growth in FY 2018 1.7% € million 2018 2017 2018 2017 Net sales 848.4 870.2 215.6 207.3 • Q4: +2.1% Organic growth 1.7% -0.2% 2.1% 1.3% • EBITDA margin at 19.0% (FY 2017: 19.9%) EBITDA excl. one-off items 160.8 172.9 36.4 38.8 EBITDA % 19.0% 19.9% 16
Slide 10: Business Segment Food
Business Segment Food YTD YTD Q4 Q4 FY 2018 key items € million 2018 2017 2018 2017 • Organic sales growth of 0.9% Net sales 623.4 647.7 158.0 152.1 Organic growth 0.9% -2.0% 1.9% -1.7% • Margin decrease due to higher input costs, mostly in H2 EBITDA excl. one-off items 105.3 121.3 23.8 26.0 EBITDA
Slide 11: Business Segment Biochemicals
Business Segment Biochemicals YTD YTD Q4 Q4 FY 2018 key items € million 2018 2017 2018 2017 Net sales 225.0 222.5 57.6 55.2 • Organic sales growth of 4.0% Organic growth 4.0% 5.8% 2.7% 11.1% • Margin increase through better business mix EBITDA excl. one-off items 55.5 51.6 12.6 12.8 EBITDA % 24.7% 2
Slide 12: Innovation Platforms
Innovation Platforms YTD YTD Q4 Q4 FY 2018 key items € million 2018 2017 2018 2017 Net Sales 48.8 21.5 15.2 3.9 • Higher lactic acid sales to Total Organic growth 84.9% -10.5% 239.8% -46.9% Corbion PLA JV (start-up December 2018) EBITDA excl. one-off items (29.2) (8.8) (9.2) (4.6) EBITDA % -59.8% -4
Slide 13: EBITDA bridge FY 2018
EBITDA bridge FY 2018 €M • Organic increase due to 200 higher volumes 180 12.2 160 8.4 • Price/Mix lower 5.9 10.0 140 • Higher input costs 120 20.4 2.1 100 Ingredient Solutions • On balance stable 80 164.1 product mix 131.6 129.5 60 • Significant negative currency 40 impact 20 0 • Innovation Platfor
Slide 14: Net debt bridge FY 2018
Net debt bridge FY 2018 €M • Net debt/EBITDA ratio increased 1.0x 1.6x to 1.6x (2017 year end: 1.0x) 30.0 -10.0 -112.6 -50.0 -90.0 162.2 -12.9 -1.1 • Net debt position of € 203.3M 203.3 -130.0 (end of 2018) -60.1 -170.0 -32.9 -29.3 -210.0 -12.5 -7.1 -250.0 • Operating Working Capital • Increased by
Slide 15: Free Cash Flow
Free Cash Flow 150 Rolling 12 months 100 69 72 126 123 118 120 110 55 50 101 48 100 67 75 57 24 24 12 € mln 0 5 -7 -51 -55 -58 -51 -52 -30 -74 -87 -94 -88 -50 -114 -100 -150 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 Operating cash flow Investment cash flow Free
Slide 16: Operating Working Capital
Operating Working Capital Days 120 74 77 69 70 69 69 100 59 63 72 63 47 80 43 42 44 46 49 43 39 38 44 60 40 58 56 56 63 50 55 52 55 51 55 20 0 -27 -28 -30 -23 -28 -34 -32 -31 -33 -36 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY 2016 H1 2017 H2 2017 H1 2018 H2 2018 Inventory days Trade receiv
Slide 17: Capital Expenditures
Capital Expenditures €M 70.0 € 61.7M • FY 2018 Capex: € 58.4M € 58.4M 60.0 7.6 € 49.4M 8.1 € 50.0M 50.0 1.8 4.7 11.4 15.0 40.0 • Major capex projects 30.0 20.0 54.1 42.9 38.9 • ERP implementation 35.0 10.0 • San Francisco lab Algae Ingredients 0.0 2015 2016 2017 2018 • Lactic acid expansion Ingredie
Slide 18: Dividend
Dividend Progressive regular dividend policy • Ambition to annually pay out a stable to gradually increasing absolute dividend amount per share Proposed regular dividend • All cash € 0.56/share (67% pay-out ratio) Timing • Dividend proposal to be approved by AGM: 13 May 2019 • Ex-dividend: 15 May 20
Slide 19: Outlook FY 2019
Outlook FY 2019 • Ingredient Solutions • Sales growth: Confirmation CMD guidance of 2-4% range • Food within 1-3% range • Biochemicals near lower end of 3-10% range • EBITDA margin: • Confirmation CMD guidance: > 19% Innovation Platforms • EBITDA loss not expected to exceed € -35M • Input costs: Sma
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Slide 21: EBITDA bridge Q4 2018
EBITDA bridge Q4 2018 €M 45 40 4.3 35 5.2 0.5 30 2.0 25 4.6 0.4 20 Ingredient Solutions 34.2 15 27.2 26.8 10 5 0 21 © 6/3/2019