H results. 14 September 2016, Paris FROM NATURE TO YOU

Transcription

1 H results 14 September 2016, Paris FROM NATURE TO YOU

2 AGENDA A good 2016 first half, One step closer to Bright2020 Care Execute Grow Discipline in execution Advancing towards a sustainable and profitable business model Analysis of H results Financial position: Maintaining a rigorous and disciplined approach while preparing for future growth Operating profitability: The strategy of aligning industrial capacities, building a higher value-added product mix and optimising the cost structure has produced results 2016 outlook

3 A good 2016 first half, One step closer to Bright2020

4 Financial Highlights Revenue +5.3% (constant exchange rates and like-for-like ) 208.0m EBITDA margin* 16.0% Net income 4 X 12.2m 54 days Days Sales Outstanding 44% Inventory-tosales ratio * Recurring operating EBITDA: Recurring EBITDA restated for inventory having reached the end of its product lifecycle (obsolete inventory) 4

5 Care Execute Grow Discipline in execution, on track with the 2016 action plan

6 CARE A reinforced culture based on a common objective 2016 objectives Next step Sharing a common culture Alignment of interests Nurturing our talents for growth Alignment of interests Team cohesion Close to Communities A new Group momentum Developing talent Safety Prevention campaigns 6

7 EXECUTE Rigour and discipline as the main drivers of operational excellence 2016 objectives Next step Reducing complexity Simplifying flows Industrial rationalisation Pricing / Indirect procurement Accelerating simplification GLOBAL MANAGEMENT OF INVENTORY (RM and FG) OUR 3 LEVELS OF SERVICE PURCHASING Traceability Seasonality Risk management 4 1 CUSTOMER SERVICE SALES Reducing SKUs Sales forecasts CRM tool Catalogue + Category A Category B Category C PRODUCTION LT/MT planning Capacities Management of flows INVENTORY MANAGEMENT 3 2 SUPPLY CHAIN Demand planning Categorisation Dispatching References Finished goods Raw materials Planning RM purchases and production Management Reliability Responsiveness Efficiency DELIVERY TIMES 7

8 GROW Added value and innovation as keys to differentiation 2016 objectives Accelerate innovation Accelerate Go-to-Market Alignment of industrial capacities Next step Ramping up the shift from synthetic to natural OUR EXPERTISE AS THE KEY DRIVER TARGETED CAMPAIGNS AND BRAND STRATEGY FRONTLINE Key Categories Ingredients, solutions, concepts, processes INNOVATION 8

9 Advancing towards a sustainable and profitable business model

10 H revenue A base for sound organic growth Revenue trends ( m) 202, % Organic growth* 101,6 +4.4% 103,6 Organic growth by quarter - 1,577 Reduction in SKUs 95,8 +6.3% 104,4 Increasing added value in the product mix H H restated (excl. krill) H Q1 Q2 Growth at constant exchange rates and like-for-like (excluding acquisitions, disposals or discontinued operations, businesses ) 10

11 Growth by the two strategic platforms Increasing value in the product mix and reducing the number of references MY NATURAL FOOD MY NATURAL SELFCARE +4.9% +4.9% 51.8% 34.2% +9.6% +9.1% Current Constant Current Constant 107.9m in revenue % H vs. H Breakdown of revenue By business (% of revenue H1 2016) 71.1m in revenue % H vs. H OTHER ACTIVITIES Current -1.4% 14.0% -16.8% 29.1m in revenue % H vs. H Constant excl. krill 11

12 Strong growth in the emerging countries Volatility in Europe and North America - Nutra under pressure LATIN AMERICA ASIA - PACIFIC +32.3% +32.0% 6.7% 12.2% +17.6% +20.0% Current Constant Current Constant 14.0m in revenue % H vs. H NORTH AMERICA Breakdown of revenue By region (% of revenue H1 2016) 25.3m in revenue % H vs. H EMEA +6.3% Current Constant Constant excl. krill -0.9% -1.9% 90.9m in revenue % H vs. H % 37.4% Current -1.3% 77.8m in revenue % H vs. H

13 Analysis of H results

14 Financial Position Maintaining a rigorous and disciplined approach while preparing for future growth

15 A cash flow statement reflecting both a disciplined allocation of resources and preparation for future growth IFRS ( m) Cash flow Tax payments Change in WCR Net cash flow from operating activities Net cash used in investing activities H (4.9) (32.9) (5.3) (7.3) H Restated* 24.8 (2.8) (11.8) Free cash flow from operations (12.6) 33.1 Net cash provided by financing activities Net cash provided by (used in) discontinued operations Net change in cash and cash equivalents (12.3) (5.0) (29.9) (11.6) (2.0) 19.5 * Impacts of IFRS 5 on discontinued operations 15

16 Working Capital Requirement in line with simplification and optimisation efforts Change in WCR m Proactive management of WCR DSO 54 days 54 days vs. 55 days at 31/12/2015 vs. 55 days at 31/12/2015 Increase in trade receivables reflecting peaks in activity Continuing to actively manage customer credit risk Impact WCR: - 9.5m INVENTORIES Increase in inventories according to the categorisation and catalogue 44% of sales vs. 41% at 31/12/2015 Impact of slowdown in Nutra US sales Impact WCR: m % of sales 39% of sales 46% of sales DPO* A significant improvement In supplier payment terms * Days payables outstanding Management measures and procedures in place Positive effects on supplier relations and ratings by credit insurance Impact WCR: - 6.0m 16

17 Contained and pragmatic investments in line with the 2016 execution plan Change in CAPEX in m Categories of industrial expenditures 12,5 3,8 8,1 4.0%* of sales 3.3% 10,0** 6,9 of sales % Efficiency Optimisation Maintenance Productivity Extension Growth 16.5% 16.5% Health Safety Quality Environment H1 H2 Land and building up Reyssouze in H Acquisition of stake in SCI La Pinède *Excluding the Reyssouze land and building for 3.8m ** Acquisition SCI La Pinède shares, increasing its stake in the entire real estate complex of NATUREX S.A, valued at 10.0 million; the finance lease liability at 1 January 2016 was 7.7 million. 17

18 Divestiture of interests in the JV with AKER Recoverability in three years Announcement of the divestiture of NATUREX's entire stake in the JV with AKER BioMarine specialised in krill extraction Impacts in the H consolidated financial statements Income statement: Nil Balance sheet: m in financial assets (3-year interestbearing vendor loan) Cash flow: ( 5.0m) in cash flows linked to discontinued operations (cash advances, JV loans for the reimbursement of debts) 29 March May June Actual disposal date of the shares in the JV. AKER BioMarine has full ownership of the production site based in Houston (Texas, USA) Full reimbursement by AKER BioMarine of the vendor loan* US$4.6 million payable in quarterly instalments until May 2019; US$8.9 million payable on maturity. * The vendor loan is guaranteed by collateral granted by the parent company of AKER in the form of a pledge of shares in the JV Naturex continues to guarantee the tax credits resulting from the US Federal NMTC (New Market Tax Credit); in the event of a third-party notice to enforce the guarantee, Aker undertakes to reimburse Naturex; in exchange the JV shares are pledged as collateral. 18

19 Financial debt is primarily impacted by the decrease in cash Change in net financial debt ( m) + 7,7-8,7 + 0,6-1,5 158,1 Debt-to-EBITDA leverage ratio 2.69 x vs at 31/12/2015 Net Financial Debt / recurring EBITDA over a rolling 12-month period 130,1 29,9 Gearing 43.1% vs. 35.4% at 31/12/2015 Net financial debt / Equity Dette financière nette 31/12/2015 Diminution de la trésorerie nette Crédit Bail SCI La Pinède Remboursement d'emprunts, leasing et autres dettes financières Autres variations* Ecarts de change Dette financière nette 30/06/2016 Bank covenants are respected * The other changes take into account changes in debt linked to non-controlling interests, dividends paid to minority shareholders of Chile Botanics, new leases (excluding SCI La Pinède) and OCEANE bond interest. 19

20 Operating profitability The strategy of aligning industrial capacities, building a higher value-added product mix and optimising the cost structure has produced results

21 H income statement Measuring the actual results of our actions IFRS ( m) H H Change (%) Restated* Revenue % Margin on COGS % Gross margin on COGS (%) 27.8% 23.5% Recurring operating EBITDA % Recurring operating EBITDA margin (%) 16.0% 13.0% Current operating income % Current operating margin (%) 8.9% 6.2% Net operating income % Operating margin (%) 9.2% 5.4% * Impacts of IFRS 5 on discontinued operations 21

22 The significant rise in the gross margin on COGS in line with the Bright2020 strategy on industrial efficiency Change in gross margin on COGS ( m) 47,5 57, % Gross Margin on COGS/Sales % +4.3 pts Gross Margin / COGS 27.8% Gross Margin on COGS/Sales Improvement in industrial performance Higher production levels vs. inventory reduction measures and the voluntary slowdown of production in H A better use of industrial capacities within the Group Increasing value added in the product mix Moving to a higher value-added portfolio based on key product categories (Bright2020) and in particular with strong contributions from products providing clinically substantiated benefits in the phytoactives category. Reducing the number of references leading to the decrease in contributions of nonstrategic lower-margin products/businesses 23.8% 22

23 The presentation of expenses by function makes it easier to monitor progress in the 2016 implementation plan Breakdown of expenses by function ( m) Science and Innovation Go-to-Market Execution and Simplification Sequencing projects and staff reassignment Commercial and front line organisation Integration of Indirect Procurement and Management positions 12,6 13,6 15,2 16,2 17,4 18,4 6,1 6,2 5,9 H reported basis Recherche et Développement Marketing et Commercial Général et Administratif H with 2016 allocation keys H % 3.0% 2.8% 6.2% 6.7% 7.3% 8.0% 8.6% 8.8% of sales of sales of sales of sales of sales of sales of sales of sales of sales * Review of allocation keys in 2016 (R&D, Marketing and Sales, General & Administrative) 23

24 First visible effects from the operational drivers and cost structure optimisation measures Recurring operating EBITDA ( m) Net operating income In m % % 26,3 33,2 10,9 19, % % EBITDA +3.0 pts 16.0% % EBITDA 5.4% % NOI +3.8 pts 9.2% % NOI 30/06/2016: After taking into account the reversal of impairment charges of 1.3 million for the Palafolls industrial site in light of negotiations for its sale in progress. 24

25 The increase in the net margin confirming a more balanced model Net income ( m) Basic net earnings per share (Basic EPS) ( ) X 4 12,2 X 3 1, , , /06/ /06/ % % NI +4.5 pts 5.9% % NI Basic EPS Basic EPS 30/06/2015: Including the net loss from discontinued operations of 1.7 million 30/06/2015: Basic earnings per share from continuing operations 25

26 2016 outlook

27 2016 outlook Confirming profitability and maintaining a sound financial position Seizing growth opportunities Effectively navigating market conditions Continuing to simplify our business model Focus on innovation Vitality of emerging countries Performances by speciality F&V and colours Points to watch Nutra US: resumption in activity Europe: reduction in SKUs Difficult global macroeconomic environment Foreign exchange volatility Regulatory constraints weakening important markets for the Group DNA and pesticide tests China: e-commerce distribution network Continuing to reduce the number of references Reducing inventory levels Accelerating simplification Indirect procurement Pricing and distribution Management of flows Industrial efficiency WCR direction/inventory reduction Confident in the outlook for achieving a recurring operating margin in line with analyst consensus for

28 Thank you for your attention

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