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2/3/2016 TJERK DE RUITER, EDDY VAN RHEDE VAN DER KLOOT
Q4/FY15 RESULTS
©
• Organic net sales growth of 4.5%, mostly price/mix driven (2.8%)
• Net sales growth of 14.9%; currencies added 9.0%
• EBITDA Q4 excluding one-off items EBITDA € 33.2M (Q4 14: € 30.2M): +10%
• Organic decrease of 6% due to 1) absorption effect, 2) higher variable compensation, 3) higher R&D spending in Biobased Innovations
• Streamline program: € 4.0M savings in Q4, YTD € 15.0M
• Final major project, closing Kansas plant, not yet completed.
• Proposed return to shareholders of € 75M, in addition to regular dividend
• Confirmed intention to construct a 75kTpa PLA plant in Thailand
2/3/2016 2
Highlights Q4 2015
©
Only fossil-based plastics is not an option anymore
• Fossil-based plastics increased 20x since mid-60s
• By 2050 that will nearly triple from current levels under no-action scenario
• Fossil-based plastics are 15% of our carbon budget by 2050, from 1% today
It’s not just about oil supply anymore
• CO2 reduction has increased in relevance
• Paris accord commits countries to limit greenhouse gas emissions as soon as possible
• Biodegradability and recycling both play key role in solution
2/3/2016 3
PLA – “Business as usual” no longer an option for fossil plastics -
Fossil-based plastics impact 2014 - 2050
Carbon Footprint: PLA vs fossil based plastics
© 2/3/2016 4
PLA – Market Update
Market currently stable at 120 kTpa, but growth expected to resume
• Fracking applications had major positive impact on 2011-2014H1, but declined steeply from 2014H2 to low levels
• Underlying growth excl. fracking has continued
Polystyrene prices have remained relatively high despite oil price drop
• Tight supply in Styrene monomer so far
• PLA price stable despite declining carbohydrate prices
Source: Company estimates
0
50
100
150
200
250
2005 2007 2009 2011 2013 2015 2017 2019
kTp
a
PLA Market Size
All other applications Fracking
* US export prices Source: ICIS. Globaltradetracker
0
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015 2016
US$
/t
PLA vs PolyStyrene prices
PS prices PLA prices*
©
>15 Letters of Intent signed with customers
• Majority of these customers are testing or have already validated Corbion PLA
• First (small volume) commercial sales to number of customers
Launched full portfolio of PLA resins
• Polymerization partners: Hisun, Supla, Synbra
Examples of new PLA applications being launched by
our customers
• Single use coffee capsules
• Drainage pipe-system
2/3/2016 5
PLA – Progress report
Corbion’s PLA portfolio
For more information: http://www.corbion.com/bioplastics/download-center
©
Timeline: Operational in H2 2018
Location: Rayong, Thailand
2/3/2016 6
PLA – What we will build
• PLA: 75 kTpa – est. capex € 65M
• Lactide extension: +25 kTpa - est. capex € 20M
• Distillation: enables cost competitive production for existing PLA markets
• Lactide-only customers will have secure supply
©
Transfer Emulsifier portfolio to non-PHO
• FDA announced in June 2015 it will no longer recognize Partially Hydrogenated Oils (PHOs) as safe by 2018
• Corbion launched non-PHO emulsifiers portfolio at moment of FDA announcement
• Our non-PHO products are drop-in. Some competitors are betting on non-drop-in solutions
7
R&D roadmap – Progress in H2 2015
2/3/2016
YTD YTD
€ million 2015 2014
R&D expenses cash-out 32.8 34.0
Capitalization -2.7 -4.5
Amortization / depreciation 2.5 2.5
R&D expenses excl. one-off items 32.7 32.0
Scopin
g
Concept
dev
elopm
ent
Design a
nd D
evelo
p
Test
and V
alidat
e
Laun
ch
Comm
ercia
l sca
le
Biobased Ingredients
Ferments
Animal Health
Partially hydrogenated oil replacement
Natural preservation
Fiberlive (Biomaterials)
CASE
Biobased innvations
Lactide/PLA
Gypsum free process
Succinic acid (BASF JV)
2nd Generation Biomass
FDCA
© 2/3/2016 8
Q4/FY 2015 Financials
©
Profit & Loss: Q4 and FY2015
9
• EBITDA excl. one-off items growth 9.9% in Q4 supported by:
• Volume growth
• Stronger USD
• EBITDA excl. one-off items organic decrease of 6.0% in Q4 2015
• Positive one-off items of € 4.1M, related to Grandview insurance proceeds
• FY 2015 Net result of € 80.2M
• EPS FY 2015: € 1.29
2/3/2016
€ million Q4 Q4 YTD YTD
2015 2014 % 2015 2014 %
Net Sales 230.4 200.6 14.9% 918.3 770.1 19.2%
EBITDA excl. one-off items 33.2 30.2 9.9% 150.3 109.6 37.1%
EBITDA margin 14.4% 15.1% 16.4% 14.2%
Depreciation & Amortization (45.9) (44.1)
One-off items 4.1 (52.6)
EBIT 108.6 12.9
Financial income/expenses (5.8) (9.5)
Result joint ventures/assoc. (0.6) (1.6)
Taxes (22.0) (20.2)
Result after tax 80.2 (18.3)
EPS 1.29 -0.34
EPS excl. one-off items 1.20 0.61
©
• Net Sales Growth of 14.9%, driven by:
• Organic: 4.5%
• Currencies: 9.0%
10
Sales Growth per segment in Q4 2015
2/3/2016
Vs Q4 2014 Total
Growth Currency
Total growth at constant
currency Acquisitions Organic Price/Mix Volume
Biobased Ingredients 12.2% 9.0% 3.2% 1.4% 1.8% 1.5% 0.3%
- Food 14.4% 9.9% 4.5% 1.6% 2.9% 1.7% 1.2%
- Biochemicals 5.5% 6.3% -0.8% 0.9% -1.7% 1.0% -2.7%
Biobased Innovations 167.6% 9.4% 158.2% 0.0% 158.2% 18.8% 139.4%
Total 14.9% 9.0% 5.9% 1.4% 4.5% 2.8% 1.7%
©
• Organic volume growth Biobased Ingredients: 0.3%
• Cost level adversely impacted by non-structural items. E.g. Negative absorption effect and higher variable compensation
• Biobased Innovations: combination of higher sales and higher R&D spending
• Currency impact as $ strengthened against Euro
EBITDA bridge Q4 2015
11 2/3/2016
€M
30.2 33.2
38.2
0.9 1.5
4.0
3.8
-0.1
5.0
-7.1
0
5
10
15
20
25
30
35
40
Biobased Ingredients
©
• Organic volume growth Biobased Ingredients: 1.7%
• Cost level adversely impacted by non-structural items. E.g. Negative absorption effect and higher variable compensation
• Positive program Streamline impact of € 15.0M
• Biobased Innovations: sales growth outpacing higher R&D spending
• Currency impact as $ strengthened against Euro
EBITDA bridge FY 2015
12 2/3/2016
€M
109.6
150.3 156.2
6.8 5.4 15.0
20.1
6.9 5.9
-13.5
0
20
40
60
80
100
120
140
160
Biobased Ingredients
©
• Organic sales growth in Q4: 1.8%
• EBITDA margin decrease to 15.9% in Q4 (Q4 14: 16.3%)
• Absorption effect
• Higher variable compensation
• ROCE FY 2015 increased to 24.8% (FY14: 19.8%)
13
Biobased Ingredients
Q4 Q4 YTD YTD
€ million 2015 2014 2015 2014
Net Sales 221.3 197.2 895.9 759.9
Organic growth 1.8% 2.0% 3.3% 2.5%
EBITDA excl. one-off items 35.2 32.1 155.0 121.2
Margin 15.9% 16.3% 17.3% 15.9%
ROCE 24.8% 19.8%
2/3/2016
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Organic growth Volume growth
Guidance: CAGR 2-4%, 2015-2018
©
Business Segment Food
Q4 highlights
• Organic growth: 2.9%
• Bakery: sales down, in line with small market decline
• Meat:
• US grew: more clean label and less customer switch to LCiU
• RoW continued with good growth, mainly LatAm
• Other segments: Q4 increase after 3 consecutive quarters of negative growth
Q4 Q4 YTD YTD
€ million 2015 2014 2015 2014
Net Sales 169.5 148.1 687.8 573.5
Organic growth 2.9% 0.0% 3.7% -0.5%
EBITDA excl. one-off items 29.8 28.2 129.2 105.5
Margin 17.6% 19.0% 18.8% 18.4%
14 2/3/2016
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Organic growth Volume growth
Guidance: CAGR 1-3%, 2015-2018
©
Business Segment Biochemicals
Q4 highlights
• Electronics and Medical Biomaterials market segments performed well
• Agrochemical and petrochemical markets weakened. Pharma impacted by quarterly phasing
• Feed acidifiers severely impacted growth negatively in Q4/FY15
• Comparatively weaker growth rates due to strong 2014
Q4 Q4 YTD YTD
€ million 2015 2014 2015 2014
Net Sales 51.8 49.1 208.1 186.4
Organic growth -1.7% 8.2% 1.6% 12.6%
EBITDA excl. one-off items 10.3 9.6 45.5 38.2
Margin 19.9% 19.6% 21.9% 20.5%
15 2/3/2016
-6.0%
0.0%
6.0%
12.0%
18.0%
24.0%
30.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Organic growth Volume growth
Guidance: CAGR 5-8%, 2015-2018
© 16
Biobased Innovations
• EBITDA more negative in Q4
than in previous quarters
• Ramp-up in R&D expenses
• Growth in bioplastics related sales accelerated in Q4
• Continued disciplined approach in developing new business platforms
Q4 Q4 YTD YTD
€ million 2015 2014 2015 2014
Net Sales 9.1 3.4 22.4 10.2
Organic growth 158.2% 120.6% 106.7% 96.4%
EBITDA excl. one-off items (2.0) (1.9) (4.7) (11.6)
Margin -21.8% -56.3% -20.8% -113.2%
2/3/2016
©
• Majority of Streamline program has been implemented:
• Cost savings Q4: € 4.0M (FY 2015: € 15.0M)
• Large remaining initiative: US plant consolidation
• Closure of our Kansas Avenue powder blending plant (integrated into Totowa, NJ plant)
• Total expected annual savings of € 20M (@ run rate before end 2016) maintained
• Production in Totowa plant not yet at satisfactory levels
• Remaining one-off Streamline costs (< € 8M) within guidance range (€ 20M)
17
Streamline program progress
2/3/2016
€ M Strategy Oct 2014 Guidance
2014 2015 Total
Streamline: - EBITDA Savings (structural) - EBITDA one-off impact
€ 20M
€ (20)M
-
€ (12.1)M
€ 15.0M € (0.1)M
€ 15.0M
€ (12.2)M
US Plant Consolidation: - Capex (cash) - Impairment (non cash)
€ (10)M
No guidance
-
€ (8.2)M
€ (7.0)M
-
€ (7.0)M € (8.2)M
€ M Q1 Q2 Q3 Q4 FY15
Savings 2.5 4.3 4.2 4.0 15.0
©
• Net debt position of € 62.1M per end of 2015
• Net debt/EBITDA ratio of 0.4x
• Operating Working Capital decreased by €1.0M
• Dividend & additional returns to shareholders
• € 108.4M cash-out in total
Net debt/cash bridge FY 2015
18 2/3/2016
7,7
31,9
51,2
€M
5.8
62.1
-50.0
-5.6
-54.7
-58.4
-15.1
114.9
1.0
-80
-30
20
70
120
170
© 19
Free Cash Flow
• Improving trend in free cash flow
2/3/2016
€M
34 57
67 75
110
-69 -87
-74 -51 -55
-35 -30
-7
24
55
-100
-50
0
50
100
150
H2 2013 H1 2014 H2 2014 H1 2015 H2 2015
Operating Cash Flow Investment Cash Flow Free Cash Flow
Rolling 12 months
©
• Operating Working Capital (in days) significant improvement versus end 2014
2/3/2016 20
Operating Working capital
50 58 55 52
43
43 39
38
-34 -32 -31 -27
-60
-40
-20
0
20
40
60
80
100
120
H1 2014 FY 2014 H1 2015 FY 2015
Inventory days Trade Receivables (DSO) Trade Payables (DPO)
59 69
63 63
-9% Days*
*Balance sheet position (e.g. inventory value)/net sales last quarter * 90
© 21
Capital Expenditures
Spending in line with indicated € 60-70M: € 61.7M
Major capex projects in FY 2015
Maintenance
• Grandview facility
• Non-PHO emulsifier capability
Expansion
• Acid powder line
Other
• Totowa investments to facilitate Kansas plant integration
2/3/2016
€M
€M
34.8
7.0
12.3
7.6 0
10
20
30
40
50
Biobased Ingredients Biobased Innovations Totowa/Kansas integration
Guidance: € 20M
Guidance: € 10M
Guidance: € 25 M
Guidance: € 10 mln
€ 47.1 mln
Mai
nte
nan
ce
Exp
ansi
on
42.3 54.1
20.2 7.6
0
10
20
30
40
50
60
70
80
2010 2011 2012 2013 2014 2015
Biobased Ingredients Biobased Innovations Corbion total
€ 62.5M € 61.7M
©
Regular dividend
• All cash € 0.43/share (35% pay-out ratio)
€ 75M Additional shareholder return 2016
• € 25M additional cash dividend: € 0.42/share
• € 50M share buyback
• Program to commence March 2016 and to be completed by year-end
• Purchased shares to be cancelled
Timing
• Dividend proposal (regular & additional) to be approved by AGM: 12 May 2016
• Ex-dividend: 16 May 2016
• Dividends paid: 19 May 2016
2/3/2016 22
Dividend and share buyback Payment Year 2014 2015 2016
Regular dividend (€/share) 0.15 0.21 0.43
Additional dividend (€/share) - 0.81 0.42
Combined dividend yield* 1.0% 7.4% 3.9%
Additional dividend (€ M) - 50 25
Share buyback (€ M) - 50 50
*Reference share price 1/1 payment year
©
Biobased Ingredients growth in 2-4% range
• Food: Steady growth pattern
• Biochemicals: Improved growth rates from Q2 onwards
Streamline savings: Reach run-rate of annual savings of € 20M
Biobased Innovations
• Irregular product and sales order pattern, and spend phasing
• Continued high volatility in quarterly EBITDAs
Capex: € 80-90M including PLA
23
Outlook 2016
2/3/2016
©
Our strategy – Disciplined Value Creation
24 2/3/2016