NATUREX Annual results March 2013

Transcription

1 NATUREX Annual results 2012 March 2013

2 Content NATUREX World leader in specialty plant-based natural ingredients A new organisation adapted to the size of the Group Presentation of the Annual results 2012 Challenges and prospects Agenda and contacts Appendices 2

3 NATUREX World leader in specialty plant-based natural ingredients 3

4 World leader in specialty plant-based natural ingredients A unique position in the value chain Sourcing in more than 50 countries Control of the Supply Chain and the Value Chain: Selection/Crops/Harvest 8 purchasing offices: France, US, Brazil, Morocco, Ivory Coast, China, India, Poland Sustainable and responsible commitment Scientific expertise Technical support and process improvment Strong development capacities and innovation Portfolio of 50 patent families Numerous publications in scientific journals Global offer around 3 markets Diversified customer base Food Industry Flavourists, Mix & Seasonings Nutraceutical Technical know-how Pharmaceutical Leading industrial tool Extraction / Drying / Purification / Formulation Cosmetics 3 pharmaceutical sites and several Quality and Environment certifications Oral Care 4

5 Key dates Created 20 years ago 12 acquisitions completed

6 Key figures 300 m Sales % CAGR ,400 employees PF Sales in m 6

7 Locations Worldwide presence 15 industrial sites 21 sales offices 7

8 A new organisation adapted to the size of the Group 8

9 Shareholding Capital restructuring completed Two long-term and stable shareholders at our side Capital 7,728,769 shares Voting rights 8,728,023 votes Auto-Detention 0.04% SGD 21.02% SGD 27.50% CARAVELLE 15.35% CARAVELLE 13.59% Free Float 63.59% Public 58.91% FINASUCRE Group: Purchase of the participation of DIKANSKY family in SGD on 22 February 2013 CARAVELLE Group: Purchase of the participation of NATRACEUTICAL in NATUREX on 5 December 2012 There is no more preferred shares outstanding Source: SGSS/GIS 28 February

10 Governance Towards more transparency A broader Board and specialized committees Board opened to 2 Independent Directors Paul LIPPENS Olivier LIPPENS Hélène MARTEL Thierry LAMBERT Director General Manager of FINASUCRE Director General Manager of FINASUCRE Director General Manager of CARAVELLE President and CEO of NATUREX Stéphane DUCROUX FSI Independent Director COO Americas-Asia/Pacific Vice-President of NATUREX Inc Independent Director Upcoming AGM Upcoming AGM Creation of two specialized committees to assist the Board in its decisions Audit Committee, chaired by Olivier LIPPENS Appointments and Remunerations Committee, chaired by Paul LIPPENS 10

11 Executive Committee: A centralised operational management CEO Thierry LAMBERT 59 years old COO Americas / Asia-Pacific Stéphane DUCROUX 39 years old 17 years of banking experience at BNP Paribas Co-founder of Naturex in 1992, he was deputy CEO and CFO and manage some operational aspects within the Group He is now the CEO and coordinates the strategy and development of NATUREX Graduated from the ESC Pau, he joined NATUREX in 1998 through a CNSE New York (ADV, logistics, accounting) In 2000, he participated to the opening of a sales office in UK and was appointed in 2001 US Sales Director. He is now the COO of Americas-Asia/Pacific and Vice-President of NATUREX Inc. (US) Scientific Director Marc ROLLER 42 years old Industrial Director Frédéric SEGUIN 41 years old Purchasing-Supply Chain Director Serge SABRIER 37 years old Sales Director Europe / Africa Maxime ANGELUCCI 35 years old CFO Thierry Bertrand LAMBERT 35 years old Graduated Agronomist, specialized in Science and Technology of food processing industries. PhD in Biochemistry. He made several scientific publications and deposited 5 patents He joined NATUREX in 2001 as R&D Manager. Since 2005 he is Scientific Director in charge of R&D, Quality Control, Quality Insurance and Regulatory Affairs Graduated in Chemical Engineering (Ecole Supérieure de Chimie Industrielle de Lyon) 7 years of professional experience in industries (Exsymol in Monaco / Cosmetics Charabot Grasse / Semisynthesis and distillation of natural molecules) He joined NATUREX in 2003 as Plant Manager. He is Industrial Director since 2006 Graduated Agronomist, he joined NATUREX in 2000 as Purchasing Manager in Avignon and created four services (Purchasing, Logistics, Quality Insurance, Purchasing and Supply Chain) He is now Director of Purchasing and Supply Chain Graduated Agronomist / Master of Science Agribusiness 6 years experience in technical sales and export markets. He joined NATUREX in 2005 Sales Manager fot UK / Ireland, Scandinavia / Baltic and became director of European sales in 2009 He is Commercial Director Europe / Africa since 2012 Higher Degree of Business School (Birmingham), MBA (Insead), Degree of Accounting and Statutory Auditors. 7 years experience in Transaction Services at PwC UK and structured financing. He joined NATUREX in 2009 for the acquisition of NATRACEUTICAL Ingredients Division and integrated the Finance Department of Obipektin (subsidiary in Switzerland). He created Cash and Credit Management Services in 2011 in NATUREX. Since 2012, he is in charge of all finance functions within the Group and pilots acquisition projects 11

12 Presentation of the Annual results

13 Activities 2012 Highlights Continued growth in all quarters of FY 2012 Integration of companies acquired between Q and Q Both organic and external growth Acceleration from 2 nd half-year Strong contribution from emerging markets BURGUNDY (France, Spain) PEKTOWIN (Poland) VALENTINE (India) DBS (USA) Structuring of the Group More substantial structure to support growth Formalisation of the Executive Committee Segmentation of the Commercial Organisation in Europe Extension of the Head Office / Avignon (France) 13

14 Key figures 2012 Strong growth and good operating profitability Sales m +18.2% Current Operating Result 35.9 m 12.0% of sales Net Result 22.9 m 7.6% of sales Financial data as at 31 December 2012 vs 31 December 2011 * Sales at constant exchange rate up 13.9% ** Operating result: 37.6 m at 12.5% of sales 14

15 Sales in m Activities 2012 An excellent year of growth Sales by market: Group growth driven by a customer-centric offering 1.6% 4.6% Three markets still dynamics in 2012, partly due to the scope effect 30.8% Food & Beverages Weak organic growth due to the difficult economic situation in Europe Shift in the ingredients range to a larger and more customized offering allowing combinations Food & Beverage 63.0% Nutrition & Health Nutrition & Health Strong growth mainly due to the solid positioning in the US market (#1) Good contribution of NATactiv and NATlife ranges Personal Care F&B N&H Personal Care Toll-Manufacturing Toll- Manufacturing Total Personal Care Significant gain on the prior year More targeted offering for cosmetic applications and scope effect from Burgundy % +29.7% +48.1% +28.2% +18.2% 2012 vs 2011 Current Exchange rate Toll-Manufacturing High growth Further development expected thanks to the creation of a joint venture for krill extraction with Aker BioMarine 15

16 Sales in m Activities 2012 An excellent year of growth Sales by geographic area: Reaping benefits from an expanding worldwide coverage 12.2% Good activity on each area thanks to a balanced positioning in both buoyant mature markets and emerging markets with high growth potential 40.3% Europe / Africa 47.5% Europe / Africa Americas Asia / Pacific Americas Asia / Pacific Total % +30.4% +11.6% +18.2% 2012 vs 2011 Current Exchange rate 16 Europe / Africa Mitigated growth despite improvment in H2 due to the economic context Contribution of the acquired companies Burgundy and Pektowin Americas Strong growth thanks to the dynamism of North America and the U.S., the main contributor Growth acceleration in Latin America Asia / Pacific Rapid advance in Asia countries that now account for 60% of this region Ingredients distribution business in Australia suffers from the situation of the food industry sector Promising development of NATUREX Australia with a dedicated offer to the nutraceutical market Emerging countries increased 17.7% of Group sales in 2012 vs 14% in 2011

17 2012 Annual results Solid operational drivers In m IFRS * FY 2011 restated to take into account the early adoption of the amended version of IAS 19 FY 2012 FY 2011 Restated* % var. Revenue % Gross marging % % gross margin 58.5% 58.6% Current operating income (EBIT) % % current operating margin 12.0% 11.9% Other non-current operating expenses (4.4) (1.6) - Other non-current operating income Net operating income % % operating margin 12.5% 11.2% Net borrowing costs (5.1) (4.8) +6.3% Other financial income and expenses (0.9) 0.2 Income before tax % Tax expense (8.7) (8.3) +4.8% Net income attributable to the Group % % net margin 7.6% 6.2% 17

18 Current Operating Income in m Annual results 2012 Solid operational drivers Good level of the current operating income (EBIT) Gross profit increased in line with sales growth The gross margin rate remained stable due to a less favourable mix effect on H2 (mainly seasonality in Poland) The mix continues to evolve positively to products / concepts with high added value Increase in current operating income and operating margin stable In line with the growth of the activity Integration of the acquired companies Impact of structuring initiated during the year 18

19 Annual results 2012 Solid operational drivers Net Operating Income of 37.6 m includes non-current operating expenses and non-current operating income Other non-current operating expenses m Other non-current operating income m Resructuring expenses Payment from insurance policies Revaluation of employee benefits Switzerland Acquisition expenses Non-current operating expenses Non-current operating income Restructuring charges consist mainly in postacquisition costs within: BURGUNDY 0.3 m PEKTOWIN 0.8 m As well as 1.0 m regarding reorganisation expenses related to Mr. Dikansky s death Acquisition expenses relate mainly to: PEKTOWIN 0.5 m VALENTINE 0.3 m DBS 0.8 m Non-current operating income represent payments received following the passing of Mr. Dikansky on insurance policies taken out by the Group (bank insurance and key person policies) 19

20 * FY 2011 restated to take into account the early adoption of the amended version of IAS 19 Annual results 2012 A sound balance sheet In m IFRS ASSETS 31/12/12 31/12/11 Restated* In m IFRS LIABILITIES 31/12/12 31/12/11 Restated* Shareholders equity Non-current assets Non-current liabilities Goodwill Non-current financial debts Intangible assets Derived instruments non-current Tangible assets Employee benefits Financial assets Deferred tax liabilities Derived instruments non-current Deferred tax assets Current assets Current liabilities Inventories Current financial debts Derived instruments current Derived instruments current Payable tax assets Current provisions Customers and other debtors Payable tax liabilities Cash and cash equivalent Suppliers and other creditors Bank overdrafts TOTAL ASSETS TOTAL LIABILITIES

21 Annual results 2012 Financial debt A well-managed financial debt Breakdown of the net financial debt by currency In m 31/12/ /12/2011 Shareholders equity Net financial debt Ebitda Gearing (Net financial debt / Shareholders equity) Leverage (Net financial debt / EBITDA) 45.2% 28.8% % 37.0% 55.0% EUR USD CHF Net financial debt in 2012 reflects the effects of disbursements primarily related to acquisitions In 2011, this ratio benefited from the effect of the capital increase in October to launch our acquisition program (first acquisition completed in late October 2011: Burgundy) 21

22 Strengthening financial resources OCEANE bond issue Quality partners to support NATUREX s continuing development Main characteristics of the issue FSI (Strategic Investment Fund) 12 m investment in the operation A significant investment capacity A long-term partnership A guarantee of quality and reliability in the context of significant external growth operations SALVEPAR (TIKEHAU Capital group) 6 m investment in the operation Nominal value of the issue: 18 m 257,143 OCEANE convertible bonds of 70 per bond Annual coupon of 4.40% per annum from their issue date OCEANE bond will be paid back in cash or converted in shares on 30 June 2019 Parity 1 OCEANE for 1 NRX share Possible early repayment decision of NATUREX (Call issuer at130%) 22

23 Challenges and prospects 23

24 Challenges and prospects Anticipating market trends Strong demographic growth worldwide +2 billion in 2030, mainly in emerging countries Rising standard of living and increasing urbanization lead to increase consumption of processed products Naturalness and Health The aging of the population accelerates demand for natural products with health effects Consumers are increasingly concerned with the composition of the products (clean label, palm oil free ) Sustainable Development Preservation of natural resources and Biodiversity Eco-friendly sourcing, respect of local population, traceability, Quality control Innovation and new applications Winning new markets for industrials Innovation and development of new products/concepts combining R&D, nutrition and health 24

25 The Apus Boat in pictures 25

26 Challenges and prospects Pursuing a more selective external growth strategy Continue the external growth strategy More targeted and selective approach Great interest in a differentiating positioning: new ingredient, specific technology or additional scientific expertise, emerging markets to develop Mature markets Emerging countries Products Innovation Sciences A lower relative weight of external growth Excepted if a transforming operation is completed Synergies related to Cross-Selling postacquisitions will play a lesser role Geographic Area Market access Positioning Technology Know-How Expertise Activities 26

27 Challenges and prospects Boosting organic growth Support from our purchasing offices worldwide Organisation of the Supply Chain in a CSR approach Sourcing Supply Chain Marketing / Commercial Better convey our success around the World Promote on a priority the most sophisticated products Leading role in the organisation Develop innovation to generate organic growth Research & Development More innovation to develop new products / concepts 27

28 Support Laboratories R&D Department Challenges and prospects Innovation at the heart of our development «In-house innovation»: Encouraging local creation 75 R&D People 17 Ph D. 30 Engineers 28 Technicians 2,000 Developments / year R&D Food Ingredients Innovation Platform R&D Colours R&D Nutrition & Health R&D Personal Care 5 to 10 Scientific publications / year (Peer review journal) Development pharma/asmf Pilote Plant R&D Analytic Front Lab 50 Patent families 28

29 Challenges and prospects Spread our R&D platforms worldwide 29

30 Challenges and prospects Innovation at the heart of our development «Open innovation»: Building collaborative bridges Upstream partnerships Contributing to innovative projects Start-Ups Universities Research Centres INRA CIRAD Avignon University Rutgers University, NJ USA Washington University MO USA ADIV R&D SENIFOOD ACPH OGIRC SATIN NEMAF Collaborative projects Equipment suppliers Process improvement Innovative processes New technologies Transfer of technology 30

31 Challenges and prospects Innovation at the heart of our development Our main areas of innovation Raw materials Finding new plants Processes Implementing new technologies Projects Objectivation of botanical extracts Food Ingredients and Colours Antimicrobial Replacing Nitrates / Nitrites Stabilization of natural colours Conservation of Fruit & Vegetable powders Sustainable development, responsible commitment, rational agriculture Sourcing campaign, collaboration with an ethno botanist Creation of integrated agricultural sectors, partnership with local actors (cultivation contracts, defined and controlled harvesting) New techniques of soilless culture Targets 2013: Africa and Amazonia Collaboration with local scientific and research teams, thesis projects New extraction processes Replacement of organic extraction solvents Purification methods Encapsulation techniques Nutrition & Health Personal Care Weight loss Cognitive performance Inflammation and joint pain Immunity Skin firmness Hair density / Fall Protection Healing, restructuring, Antiaging 31

32 Challenges and prospects Generate sustainable and profitable growth Continued dynamic growth in 2013 Organic growth supported by the implementation of a targeted marketing approach and a strong ability to innovate the rise of the acquired companies the maturity of our sales offices, particularly in emerging countries A year of major investments related to the structuring of the Group (extension of the head office in Avignon, accommodations post-acquisitions, jointventure with Aker BioMarine) Related to the implementation of the development strategy Industrial projects (India, China) R&D and laboratories and beyond A Business Model, creating value Continue to enhance our product mix through R&D in order to maximize organic growth Improve in the long run the operating margin 32

33 Agenda and contacts 33

34 Agenda Financial Communications General Meeting 26 June 2013 in Paris Financial information Sales Q April 2013 Results Q May 2013 Sales H July 2013 Results H August 2013 Sales Q November 2013 Results Q November 2013 Annual sales February 2014 Annual Results March 2014 Release of financial information after the market close 34

35 Contacts Thierry Lambert President and CEO Thierry Bertrand Lambert CFO Carole Alexandre IR Anne-Catherine Bonjour Press Relations Actus Finance t.lambert@naturex.com Tel. : + 33 (0) t.blambert@naturex.com Tel. : + 33 (0) c.alexandre@naturex.com Tel. : + 33 (0) acbonjour@actus.fr Tel. : + 33 (0)

36 Appendices 36

37 Share price Share Value January March 2013 Number of shares: 7,728,769 NYSE Euronext Paris Compartiment B from October 1996 ISIN code FR Stock Capital Market: 473 m (25 March 2013) TICKER: NRX - REUTERS: NATU.PA ; BLOOMBERG: NRX:FP ; DR Symbol: NTUXY Indices: CAC Small, Gaïa Index Eligible at SRD long-only (Deferred Settlement Service) Sponsored, Level I, American Depositary Receipt program with BNY Mellon Fiscal year: from 1 er January to 31 December AGM: June Liquidity Contract: NATIXIS Analysts: BERENBERG Capital Markets, CHEUVREUX, CM-CIC Securities, DAVY RESEARCH, ID Midcaps, KEPLER Capital Markets, NATIXIS, PORTZAMPARC, SOCIETE GENERALE

38 Cash flow statement In m - IFRS 31/12/ /12/2011 Net cash flow from operating activities before change in WCR Tax paid (5.8) (4.5) Change in WCR (30.9) (11.9) Net cash flow from operating activities Net cash flow from investment activities (56.6) (25.9) Net cash from financing activities Change in cash flow (33.6) 20.6 Closing cash position Opening cash position Effects of foreign exchange rate changes on cash held (0.3) (0.1) 38

39 Product range By market Natural ingredients with aromatic, preservative, healthy, texturing and sweetening properties Plant extracts and innovative active ingredients for nutraceutical applications and pharmaceuticals Innovative active natural ingredients, plant extracts and functional raw material 39

40 Sustainable development and Social responsibility Acting for a better World Support for education, medicine and basic needs for populations in countries producing our plants, herbs and spices Endowment Fund to collect donations Instalments to Naturex Fund Contact Antoine Dauby - Secretary of the Fondation NATUREX Jacques Dikansky Site d Agroparc - BP Avignon Cedex 08 a.dauby@naturex.com 40

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