CONTENTS ANNUAL HIGHLIGHTS # ANNUAL RESULTS #02 TRENDS AND OUTLOOK #03 APPENDICES #04

Transcription

1 2017 ANNUAL RESULTS

2 CONTENTS ANNUAL HIGHLIGHTS # ANNUAL RESULTS #02 TRENDS AND OUTLOOK #03 APPENDICES #04 2

3 # 01 HIGHLIGHTS Our transformational drivers Olivier Rigaud Chief Executive Officer 3

4 Our transformational drivers Creating optimal conditions for growth and performance An optimised managerial model Implementing a regional governance organisation Rationalisation of the product portfolio Completing and integrating two acquisitions Improving processes (production, R&D ) Reinforcing financial discipline 4

5 2017 Results Building a solid and sustainable model SALES EBITDA* WCR 404.9m +0.1% (current exch. rates) 64.0m 15.8% (% of sales, current exchange rates) 41.3% (% of sales, Current exchange rates) 5 * Recurring operating EBITDA

6 Naturex Pathfinder Our responsible engagement, a creator of value for our stakeholders RESPONSIBLE SOURCING CO 2 EMISSIONS WATER CONSUMPTION WASTE 51% Sales generated from Pathfinder approved raw materials - 4% Tonnes CO2eq - 9% Quantity of water consumption 86% NHIW recovered 6

7 Naturex People Our diversity as a performance lever WORKFORCE BALANCE DIVERSITY SAFETY 1700 employees 31% women 69% 25 nationalities Safety: be involved, be aware! 40% men 5 continents 2020 target 100% 7 CARING CREATIVITY PASSION ENTREPRENEURIAL SPIRIT INTEGRITY

8 2 017 Sales by business Refocusing on our two strategic platforms MY NATURAL FOOD 213.4m of which a 5.5m consolidation scope effect + 1.4% 33% MY NATURAL SELFCARE 135.1m of which a 0.2m consolidation scope effect + 2.6% (current exch. rates) (constant exch. rates) - 1.8% (current exch. rates) - 1.3% (current exch. rates) My Natural Food 53% Sales by business (% 2017 sales) 14% 2017 total revenue : 404.9m of which Other activities 56.4m My Natural Self care Other activities 8 My Natural Food consolidation scope effect : 3.8m in sales linked to the acquisition of the Haliburton International Foods' business assets, know-how and industrial equipment and 1.6 million from the Swedish Oat Fiber acquisition. My Natural Selfcare consolidation scope effect: 0.2 million in sales linked to the Swedish Oat Fiber for the SelfCare segment.

9 2017 sales by region Regional focus on volatile markets North America 170.1m of which a 3.8m consolidation scope effect - 1.6% (current exch. rates) + 2.7% (constant exch. rates) Sales by region (% 2017 sales) EMEA 140.9m of which a 1.8m consolidation scope effect - 4.5% (current exch. rates) - 4.8% (constant exch. rates) North America 41% 35% EMEA Latin America Asia / Pacific 30.8m 63.1m + 4.1% (current exchange rates) + 5.8% (constant exch. rates) % (current exchange rates) % (constant exch. rates) Latin America 8% 16% 2017 total revenue : 404.9m of which a 5.7m consolidation scope effect Asia / Pacific 9 North America region consolidation scope effect: Sales linked to the acquisition of Haliburton International Foods' business assets, know-how and industrial equipment. EMEA consolidation scope effect : Sales linked to the acquisition of Swedish Oat Fiber.

10 A leaner and more concentrated organisation Alignment of responsibilities 60 SLT members Senior Leadership Team Key managers of all countries All Departments represented Execution of the strategy Roadmap / Action plans Coordinating team efforts Regional and local level 10 Talent Management The foundation of the culture A new incentive policy

11 A reinforced regional organisation Encouraging a Go TO MARKET culture 4 Senior Vice-President in the 4 regional markets Key Accounts Sales Force Front-Line Cross-corporate Expanding the commercial coverage R&D 18 clinical studies Ingenium > 10 partnerships Springlabs 11 establishments 11 Markets/Customer Proximity Global Regional - Local

12 Accelerating the reduction of SKUs A refocused product portfolio Priority on customer satisfaction Customer Focus 4 key categories Rationalisation > 8,500 in2015 6,500 in % Satisfaction CUSTOMERS (OTD) Product portfolio more VALUE and TARGETED - 10m Aggregate impact on sales

13 Building a Customer-Centric approach Energising the sales force A more reliable and solid project pipeline % + 6% Categorisation of the customer portfolio Greater customer proximity Increasing Customer Intimacy X 1.5 CUSTOMER visits 4 regions commercial capacities NATUREX network and the DISTRIBUTION network NPD* 8.2% of sales vs. 5.5% of sales in * NPD: New Product Development over the last three years

14 Acquisition of a roasting* technology Innovation and synergies 360 A reinforced model for Vegetable Juices Inc. Additional technological know-how Roasting Natural vegetable-based solutions Purées, sauces, roasted veggies : Expanded regions for sourcing Strengthening and diversifying the customer base Portfolio synergies Flavouring Foodstuff Colours, textures Savoury, Culinary Ethnic & bold flavours 14 * Acquisition of the Haliburton Intl Foods assets. Roasting: A technology for stewing*** fruits and vegetables

15 Acquisition of Swedish OatFiber Market differentiation in the nutrition segment Product convergence between functional food and natural nutrition Expertise covering the entire value chain Customer awareness HEALTH BENEFITS EFSA claim 13.1 (Lowering cholesterol rates) : Diversification and added value Low processed dietary fiber A complementary range Cardiovascular health segment Oat beta glucans 15

16 In summary An organisation fully focused on execution A managerial model aligned with strategic objectives Strengthening our Pathfinder sustainable engagement Integration rapid and now completed for our two acquisitions A fully focused commercial governance 16

17 # 02 ANALYSIS OF 2017 ANNUAL RESULTS Simplification measures and financial discipline produce positive results François de Gantes Chief Financial Officer. 17

18 2017 Results Building a solid and sustainable model SALES EBITDA* WCR 404.9m +0.1% (current exch. rates) 64.0m 15.8% (% of sales, Current exchange rates) 41.3% (% of sales, Current exchange rates) 18 * Recurring operating EBITDA

19 * Recurring operating EBITDA Activating the key performance drivers recurring operating EBITDA: Key actions In m 54,2 61,4 64,0 Optimisation of the cost structure Generating increased value from the product mix Simplification and Lean Miscellaneous impacts m consolidation scope effect from acquisitions 0.4m foreign exchange effect 4.2m obsolete inventory % of sales 15.2% of sales 15.8% of sales

20 Significant decrease in transport costs Transport costs A global management of transport In m - 2m Supply Chain Governance Optimisation of flows Inventory categorisation ,2 13,9 3.43% Transport costs / Sales vs. 4.02% in 2015 / 10 Airfreight % On Time Departure

21 Pricing Developing a global approach Strategy Governance Tools 100bps EBITDA impact Approach*** responsible and sustainable Step 1: Cost + Impact of inflation Identifying low statistical prices Managing the volatility of raw material prices Leveraging factors of differentiation Monthly Committee Meeting CFO + CCO +Sales Management Control Centralising Role of Category Managers and pedagogy with Business Developers A single Price List Accessible from the CRM Guidelines for prices Strategic tools Detecting anomalies Long-term objectives From Cost + to Value Pricing 22

22 Lean Manufacturing Deploying a Lean management culture at all our sites Simplification Industrial performance SKUs & Packaging - 20% SKUs % Packaging Utilisation of capacity + 4% Intra- Group flows - 7% Total - 15% Raw Materials and Semifinished goods Yields + 20% 2 Extraction projects in projects in 2018 Better S&OP coordination Positive impact on WCR Positive impacts on Sustainability Better use of raw materials Positive impacts on the margin on COGS 23

23 Expenses by function A better allocation of our resources In m 29,7 28,2 36,2 35,2 A 10% reduction in operating expenses Good control over staff costs 14,0 14,0 Rationalising the support functions Finalisation of the reorganisation of the sales force Recherche et Développement Marketing et Commercial Général et Administratif More targeted R&D spending 3.5% of sales 3.5% of sales 7.3% of sales 7.0% of sales 9.0% of sales 8.7% of sales 24

24 Net operating income Impacted by the impairment of non-current assets and acquisition-related expenses In m 33, ,3 7.8m Impairment of assets vs m in m impairment of the site in Valencia (Spain) vs. 3.5m already recognised in m Impairment of Roha assets (India) Résultat opérationnel courant Restructurations Dépréciation d'actifs non courants Frais de croissance externe Autres produits opérationnels non courants Résultat opérationnel 2.6m Acquisition-related expenses vs m in 2016 Roasting technology of Haliburton Intl Foods Swedish Oat Fiber 25

25 From Operating Profit to Net Profit Impact of borrowing costs and the tax expense In m 23,3 1.7m Loan issuance costs for the preceding structured loan 31.1% 2017 effective tax rate m 11,8 Foreign exchange loss US$2.2m Favourable impact of the US Tax Reform Résultat opérationnel courant Coût de l'endettement financier Autres produits et charges financiers Résultat avant impôt Charge d'impôt Résultat net + 2.1m Net proceeds from the sale of Biopolis shares 14.9m Unrecognised deferred tax assets 26

26 Working capital requirements Positive effects of inventory management and trade receivables collections In m 196,4 170,8 DSO 54 days Inventory 38.3% of sales Acquisition Impact - 0.9% Translation impact - 2.9% % of sales 41.3% of sales 27

27 CAPEX Investments focus on industrial efficiencies and growth Acquisition of stake in SCI La Pinède Breakdown of industrial investments 19,8 15, projects initiated in ,6 9,9 Health Safety Quality Environment 19% 42% Efficiency Optimisation Maintenance Productivity Expansion Growth 39% % of sales excluding the acquisition of SCI La Pinède shares 3.9% of sales excluding 2018 projects initiated in Excluding acquisition of SCI La Pinède shares, increasing its stake in the entire real estate complex of Naturex S.A, valued at 9.6m; the finance lease liability at 31 December 2016 was 6.8m.

28 A sound financial position Acquisitions financed from cash In m Changes in net financial debt 2.6% 173,9 171, Renegotiation of the structured loan Maximum capacity of 280m Conversion of the OCEANE bonds 18.2m Buyout of DBS minority shareholders 11.4m Repayment of debt owed to Natraceutical 8.5m A vendor loan linked to the acquisition of Haliburton Intl Foods assets Put option on non-controlling interest held by CHILE BOTANICS shareholders 20.8m Average cost of the structured credit facility 2.67 financial leverage vs at 31/12/2016 Bank covenants respected 29

29 Volatility of the USD Impact on revenue and EBITDA Average EUR/USD exchange rate 2017 impacts 1,22 1,06 1,09 1,17 1,18-2.7m Revenue - 0.9m EBITDA Q1 Q2 Q3 Q

30 In summary Strong financial discipline Controls over the cost structure Optimised WCR Flexible financing capacity 31

31 # 03 TRENDS AND OUTLOOK Acting on opportunities to create lasting growth Olivier Rigaud Chief Executive Officer 32

32 Positioned to move forward Well-positioned for anticipating evolving trends in our markets A more solid business model Stronger foundations Fully focus on our strategic priorities Accelerating the development of our key categories Finalising the transition of our market positioning in Phytoactives 33

33 Phytoactives From nutraceutical to nutrition PHYTOACTIVES Nutrition Market trends PRESERVATIVES F&V & TASTE Organic Traceability Natural nutrition Transparency Functional Health food awareness Responsible sourcing COLOURS Our development priorities Placing a priority on ingredients offering clinical study substantiated health claims Refocusing our portfolio on traceable raw materials/pathfinder Developing a nutrition platform Exploiting synergies with Preservatives and F&V Nutrition

34 F&V & Taste Developing Foodstuff Flavouring PHYTOACTIVES Clean label Market trends Clean label Taste Low processed Foodstuff flavouring Health Intuitive nutrition*** PRESERVATIVES F&V & TASTE COLOURS Our development priorities Three technology platforms (wet/dry/roasted) Baby Food segment penetration (emerging countries) Synergies for colours, preservatives, nutrition Taste

35 Natural colours Focus on innovative solutions and the customer experience PHYTOACTIVES Market trends PRESERVATIVES F&V & TASTE Clean label Free E-Number Synthetic/naturel shift in emerging countries COLOURS Taking advantage of the dual nature of our portfolio: colouring pigments and foodstuff colouring Improving the stability of natural colours Applying our technical expertise in the United States and Latin America A more solid project pipeline Reliability Our development priorities

36 Preservatives PHYTOACTIVES A solution-based business model PRESERVATIVES PRESERVATIVES F&V & TASTE Market trends Regulatory developments Shift in emerging countries Consumer awareness Efficacy COLOURS Our development priorities Expertise in the formulation of colours/preservatives An expanded portfolio of solutions (antioxidants, active ingredients, antimicrobials ) A more solid project pipeline

37 2018 outlook A year of execution and progress with our strategic priorities PHYTOACTIVES Accelerating the adaptation of our production facilities to market changes and the improved performances of our plans PRESERVATIVES Synergies and cross-selling of our 4 key categories F&V & TASTE Priority on commercial execution Continuing our transformation to improve our profitability while investing in future growth Strengthening our leadership through external growth COLOURS 38

38 # 04 APPENDICES 39

39 Our Mission Source Convert Deliver WE BELIEVE IN NATURE We actively foster the global shift to natural. We sustainably reveal and magnify the treasures of the botanical world in order to serve our customers in the creation of natural, genuine products that care for, delight, and improve the health of consumers. 40

40 Our products & solutions offering OUR STRATEGIC PLATFORMS OUR STRATEGIC CATEGORIES MY NATURAL FOOD MY NATURAL SELFCARE COLOURS SPECIALTY F&V PHYTOACTIVES ANTIOXIDANTS 41

41 Our corporate foundation Acting for a better world CREATED IN MARCH 2008, OUR FOUNDATION IS DEDICATED TO IMPROVING LIVING CONDITIONS IN THE COUNTRIES WHERE WE OPERATE Environment, education and health Close to our factories and offices Charitable with longterm focus Open to employee commitment >320,000 granted since creation 9 countries >50 actions 12,000 beneficiaries 42

42 Income statement In m Revenue Change in finished goods and in-progress inventory (14.6) (19.4) Operating grants Other operating income Purchases (154.2) (179.4) Staff costs (95.6) (94.4) External charges (83.8) (93.5) Taxes other than on income (2.6) (3.0) Allowances for depreciation, amortisation and impairment (25.9) (27.0) Other current operating income and expenses (0.8) (0.6) INCOME FROM OPERATIONS Other non-current operating expenses (10.7) (7.6) Other non-current operating income NET OPERATING INCOME Net borrowing costs (7.4) (6.3) Other financial income and expenses INCOME BEFORE TAX Tax expense (5.3) (7.2) NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME

43 Balance sheet ASSETS EQUITY AND LIABILITIES In m - IFRS 31/12/ /12/2016 Non-current assets Goodwill Other intangible assets Property, plant and equipment Non-current financial assets Non-current derivatives Deferred tax assets Current assets Inventories Current derivatives Tax receivables Trade and other receivables Current financial assets Cash and cash equivalents Non-current assets held for sale TOTAL ASSETS In m - IFRS 31/12/ /12/2016 Shareholders' equity Non-current liabilities Long-term financial debt Non-current derivatives Employee benefits Deferred tax liabilities Current liabilities Current financial debt Current derivatives Current provisions Tax payables Trade and other payables Short-term bank facilities and overdrafts TOTAL EQUITY AND LIABILITIES

44 Cash flow statement In m - IFRS Cash flow from continuing operations Taxes paid (5.9) (10.6) Change in WCR 11.4 (38.1) Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities (68.5) (18.5) Net cash provided by (used in) financing activities (0.8) (21.7) Net cash provided by (used in) discontinued operations 0.0 (7.3) Net change in cash and cash equivalents (7.8) (35.9) Closing cash and cash equivalents Opening cash and cash equivalents Effect of exchange rate changes on cash (0.8)

45 FROM NATURE TO YOU Visit us at