Slide 1: H1 2018 Results
H1 2018 RESULTS TJERK DE RUITER (CEO) / EDDY VAN 8/8/2018 RHEDE VAN DER KLOOT (CFO)
Slide 2: Highlights H1 2018 results
Highlights H1 2018 results • Organic net sales growth of 3.1%, volume driven • Net sales decrease of 4.9% due to currency effects • Food: Return to growth in Q2. Bakery declines fading; Meat very strong & Other slight growth • Biochemicals: Strongest performance in Pharma/Medical & Electronics, part
Slide 3: Update Algae Ingredients – R&D and Production
Update Algae Ingredients – R&D and Production Key priorities in H1 • Validate algae fermentation technology • Improve SB Renewable Oils plant standards • Improve AlgaPrime™ DHA product quality • Restart demo plant Peoria • Move laboratories to new location in San Francisco Finalized acquisition 49.9
Slide 4: Update Algae Ingredients - Commercial
Update Algae Ingredients - Commercial AlgaPrime™ DHA • AlgaPrime™ DHA-fed salmon now available at Whole Foods • Two larger US retailers expected to follow in H2; discussions with large European food retailers • Slower 2018 revenue progress due to necessary product improvement program Thrive® • Outle
Slide 5: Update on PLA
Update on PLA • Construction JV plant on budget/on schedule, commercial start-up planned for H2 2018 • 2nd production campaign of PLA using pilot plant (1kT/a capacity) • Upgraded lactide plant restarted according to plan in Q2 • Construction phase coming to end; commisioning phase on the way 5 © 8/
Slide 6: H1 2018 Financial Results
H1 2018 Financial Results 6 © 8/8/2018
Slide 7: Profit and Loss: H1 2018 and Q2
Profit and Loss: H1 2018 and Q2 € million YTD YTD Q2 Q2 • EBITDA excl. one-off items -19.0% 2018 2017 2018 2017 % (organic growth +1.2%) in H1 2018: Volumes 234.3 219.5 6.7% 124.3 112.0 11.0% • Higher volumes Net Sales 439.2 461.9 -4.9% 226.2 232.0 -2.5% EBITDA excl. one-off items 71.5 88.3 -19.0% 3
Slide 8: Sales Growth per segment in H1/Q2 2018
Sales Growth per segment in H1/Q2 2018 Total growth Acquisitions/( Total growth Currency at constant Organic Price/Mix Volume Divestments) currency YTD 2018 vs 2017 Ingredient Solutions -7.2% -8.8% 1.6% 0.0% 1.6% -0.4% 2.0% - Food -9.5% -9.6% 0.1% 0.0% 0.1% -1.1% 1.2% - Biochemicals -0.4% -6.6% 6.2%
Slide 9: Ingredient Solutions
Ingredient Solutions YTD YTD Q2 Q2 • Organic sales growth in H1 2018 1.6% € million 2018 2017 2018 2017 Net Sales 417.5 449.9 210.9 223.9 • Q2: +1.1% Organic growth 1.6% -1.1% 1.1% -0.7% • EBITDA margin stable at 20.3% (H1 2017: 20.3%) EBITDA excl. one-off items 84.8 91.2 41.5 41.8 EBITDA % 20.3% 20
Slide 10: Business Segment Food
Business Segment Food YTD YTD Q2 Q2 H1 2018 key items € million 2018 2017 2018 2017 • Organic sales growth of 0.1% Net Sales 304.5 336.4 157.3 169.0 Organic growth 0.1% -2.4% 0.6% -1.4% • Margin decrease due to higher input costs in Q1 and higher freight costs EBITDA excl. one-off items 54.7 64.6 27
Slide 11: Business Segment Biochemicals
Business Segment Biochemicals YTD YTD Q2 Q2 H1 2018 key items € million 2018 2017 2018 2017 Net Sales 113.0 113.5 53.6 54.9 • Organic sales growth of 6.2% Organic growth 6.2% 3.4% 2.5% 1.2% • Margin increase through better business mix EBITDA excl. one-off items 30.1 26.6 13.6 11.0 EBITDA % 26.6% 23
Slide 12: Innovation Platforms
Innovation Platforms YTD YTD Q2 Q2 Q2 key items € million 2018 2017 2018 2017 Net Sales 21.7 12.0 15.3 8.1 • Higher lactic acid sales to Total Organic growth 56.1% 3.4% 71.9% 46.8% Corbion PLA JV in preparation of production start-up in H2 EBITDA excl. one-off items (13.3) (2.9) (8.6) (1.3) EBITDA %
Slide 13: EBITDA bridge H1 2018
EBITDA bridge H1 2018 €M 100 • Organic increase mostly due 4.5 to higher volumes 90 0.5 0.9 80 9.5 • Price/Mix stable 70 10.4 1.8 • Poorer product mix in 60 Food (lactic acid 50 Ingredient Solutions 88.3 contracts related) 40 71.5 • Richer product mix in 69.7 30 20 Biochemicals 10 • Significant nega
Slide 14: Net debt bridge H1 2018
Net debt bridge H1 2018 €M • Net debt/EBITDA ratio increased 30.0 1.0x 1.8x to 1.8x (2017 year end: 1.0x) -10.0 -50.0 162.2 59.9 • Net debt position of € 230.3M -90.0 (H1 2018) 230.3 -130.0 24.8 3.5 -170.0 25.1 -210.0 32.9 • Operating Working Capital 23.3 -250.0 14.3 4.1 • Increased by € 24.8M • Div
Slide 15: Free Cash Flow
Free Cash Flow 150 Rolling 12 months 100 69 72 126 123 118 120 110 55 50 101 48 67 75 57 24 24 34 € mln 0 5 -7 -51 -55 -58 -51 -52 -69 -35 -30 -74 -87 -94 -50 -114 -100 -150 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Operating cash flow Investment cash flow Free cash flo
Slide 16: Operating Working Capital
Operating Working Capital Days 120 77 69 70 69 69 100 59 63 72 63 80 43 42 44 46 49 43 39 38 44 60 40 58 55 52 56 55 55 56 50 51 20 0 -27 -28 -30 -23 -28 -34 -32 -31 -33 -20 -40 -60 H1 2014 FY2014 H1 2015 FY2015 H1 2016 FY 2016 H1 2017 H2 2017 H1 2018 Inventory days Trade receivables (DSO) Trade pay
Slide 17: Capital Expenditures
Capital Expenditures €M 70.0 • H1 2018 Capex: € 22.5M € 62.5M € 61.7M 60.0 7.6 € 49.4M 20.2 € 50.0M 50.0 1.8 4.7 15.0 40.0 • Major capex projects 30.0 € 22.5M 54.1 20.0 42.3 35.0 42.9 3.5 4.9 • San Francisco lab Algae 10.0 14.1 Ingredients - 2014 2015 2016 2017 2018 • Lactic acid expansion Ingredien
Slide 18: Outlook FY 2018
Outlook FY 2018 Ingredient Solutions • Sales growth: Confirmation CMD guidance for both Food (1-3%) and Biochemicals (3-10%) • EBITDA margin: • Confirmation CMD guidance: > 19% • H2 margin < H1 margin due to rising freight costs, mix effects in Biochemicals, and investments in growth initiatives Inn
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Slide 20: EBITDA bridge Q2 2018
EBITDA bridge Q2 2018 €M 50 3.0 45 2.6 1.9 40 4.0 35 30 7.3 2.5 25 Ingredient Solutions 20 40.5 32.9 15 30.4 10 5 0 20 © 8/8/2018