Investors Presentation Dr. Stephan Meeder, CFO June 2018

Transcription

1 Investors Presentation Dr. Stephan Meeder, CFO June 2018

2 Ethanol the alternative to fossil fuel Domestic renewable raw materials High-quality fuel which can be used in petrol engines Climate-friendly fuel produced sustainably 2

3 EU - Framework Renewable Energies Directive EU shares of renewable energy in transport Overall goal 10% renewable energies in the transport sector in 2020 Of which up to 7% conventional biofuels Biofuels from wastes and residues: quota 0.5% + double counting Paris Climate Agreement: restrict global warming to less than 2 C Source: Eurostat Most pressing concern: transport lags behind Deployment of renewables in transport stagnates Road transport still 95% reliant on fossil oil Source: Eurostat (2016) 3

4 Ethanol: applications and EU market Ethanol As direct blend to petrol As component in ETBE (octane booster) Ethanol petrol Petrol E5 E10 E20 E85 EU ethanol market 2017 (in million m³) Production: % (+ 2.3 non-fuel) EU fuel consumption 2017 (309 million t) Consumption: % (+ 2.5 non-fuel) EU fuel consumption in 2017: 309 million t Source: Eurostat 4

5 (in million m 3 ) (in million m 3 ) The ethanol markets World production EU production 2017: million m 3 (+2%) 2017: 7.5 million m 3 (+8%) Fuel applications: million m 3 (+3%) Fuel applications: 5.2 million m 3 (+10%) 2018e: million m 3 (+3%) 2018e: 7.7 million m 3 (+2%) Fuel applications: 106 million m³ (+5%) Fuel applications: 5.3 million m³ (+2%) World production of ethanol USA Brazil EU Other 10 8 Ethanol production in the EU Alcohol for traditional applications Bioethanol for fuel applications e 2019e Source: F.O.Licht e 2019e Source: F.O.Licht 5

6 Our co-products Raw materials are utilized completely Concept of co-production Vital Wheat Gluten Valuable protein product for food and animal feed industry ProtiGrain DDGS High protein animal feed from dried stillage Food-grade liquefied CO 2 For food and beverages industries ProtiWanze CDS Liquid protein animal feed from stillage 6

7 Our locations CropEnergies Inc., Houston, USA Wilton, UK Ensus UK Ltd Trading office São Paulo, Brazil Ryssen Chile SpA, Santiago de Chile, Chile Tank storages Rotterdam Tank storages Amsterdam Zeitz, Germany CropEnergies Bioethanol GmbH Loon-Plage, France Ryssen Alcools SAS Wanze, Belgium BioWanze SA 7

8 ( /t or /m 3 ) Profitability drivers Volatile ethanol prices Price expectation * below previous year March-May 440 /m³ ( 573 in prev. year) Future prices point to increase Raw materials prices relatively stable Again big grain harvest ** 2018/19 of about 2.1 billion t expected Solid stocks level CE benefits from natural hedge Fuel EtOH T2 FOB Rdm. (1M) Gross profit for wheat-etoh Net raw material costs Euronext Paris wheat No. 2 *) ethanol T2 FOB Rdam **) without rice 8

9 European ethanol prices (in /m 3 )* *) ethanol T2 FOB Rotterdam 9

10 RED II: Renewable Energy Targets 2030 General renewable energy target: 32% Transport target: 14% Basis: level reached in 2020 plus 1%-point Up to 7% of crop-based fuels Advanced biofuels Made from waste and residues Gradual increase to 3.5% by 2030 High investments required GHG-savings of ~ 80-90%* Final details available by mid of July 2018 Implementation into national law within 18 months after publication in EU Official Journal * compared to fossil petrol 10

11 Source: epure 11

12 The production sites of CropEnergies AG CropEnergies AG Mannheim - Germany Zeitz Germany CropEnergies Bioethanol GmbH Wanze Belgium BioWanze SA Loon-Plage France Ryssen Alcools SAS Wilton UK Ensus UK Ltd. Annual capacity: Annual capacity: Annual capacity: Annual capacity: 400,000 m³ ethanol thereof up to 60,000 m 3 neutral alcohol >300,000 t ProtiGrain (DDGS) 100,000 t liquefied CO 2 300,000 m³ ethanol 55,000 t wheat gluten >350,000 t ProtiWanze >100,000 m³ ethanol for fuel applications 90,000 m³ ethanol for traditional and technical applications 400,000 m³ ethanol 350,000 t DDGS Raw materials: grain and sugar syrups Raw materials: wheat and sugar syrups Raw material: raw alcohol Raw material: grain ProtiGrain Gluten Ethanol as Fuel Ethanol for traditional & technical applications ProtiWanze Liquefied carbon dioxide Capacity: more than 1.3 million m³ ethanol and more than 1 million tonnes food and animal feed per year 12

13 Produkte Financials & Outlook 13

14 Income statement (I) (in million) 2017/ /17 Δ Δ Revenues % EBITDA* % Margin 12.6% 16.8% Depreciation* % Operating profit % *without restructuring costs and special items Growth in revenues due to production and sales increase of ethanol and food and animal feed Year-round operation of the plant in Wilton High capacity utilisation at all production sites EBITDA declines due to the higher expenses for raw materials and maintenance 14

15 Income statement (II) (in million) 2017/ /17 Δ Δ Revenues % EBITDA* % Operating profit % Restructuring costs / special items % At equity result Income from operations % Financial result % Earnings before income taxes % Taxes on income % Net earnings for the period % Earnings per share (in ) % *without restructuring costs and special items Financial result improves to -0.9 (-4.1) million due to the by now positive net financial position Consolidated net earnings for the year amount to 50.8 (68.8) million 15

16 (in million) Cash flow (in million) 2017/ /17 Δ Cash flow Change in net working capital Net investments Exchange rate changes et al Free cash flow before dividends Dividends for prior year Free cash flow Cash flow (+) / Investments (-) /17 17/ /02/ /02/2017 Δ Net financial position Increase of capital expenditure especially for the expansion of gluten production in Wanze Financial liabilities completely paid back 16

17 Dividend (in per share) 2017/ /17 Earnings Cash flow Dividend* Payout ratio 43% 38% *proposal Share price end of financial year Dividend yield 4.0% 3.6% CropEnergies AG - Share price Dividend proposal: distribution of 0.25 per share Issuing price Increase in payout ratio and dividend yield 17

18 Outlook 2018/19e Challenging market environment Both ethanol prices and forward rates are currently at a low level, but higher prices are expected in the course of the year Given stable grain prices, prices for protein food and animal feed products are expected to remain at a high level Revenues to range between 840 and 900 million (changed on 14 June 2018 to million) EBITDA in the range of 70 and 110 million (changed on 14 June 2018 to million) Operating profit to range between 30 and 70 million (changed on 14 June 2018 to million) Despite higher investment expenditure, net financial assets are expected to continue to improve 18

19 Financial Calendar 11 July 2018: Statement for the 1 st quarter of 2018/19 17 July 2018: Annual General Meeting October 2018: Report for the 1 st half of 2018/19 09 January 2019: Statement for the 1 st -3 rd quarter of 2018/19 15 May 2019: Annual report and press and analysts conference financial year 2018/19 Stock information ISIN: DE000A0LAUP1 Symbol: CE2 Bloomberg / Reuters: CE2 GY / CE2G.DE Transparency standard: Prime Standard Contact CropEnergies AG Maximilianstraße Mannheim Investor Relations Heike Baumbach Phone: +49 (621) ir@cropenergies.de Public Relations / Marketing Nadine Dejung-Custance Phone: +49 (621) presse@cropenergies.de Disclaimer This presentation contains forward-looking statements based on assumptions and estimates made by the executive board of CropEnergies AG. Although the executive board may be convinced that these assumptions and estimates are reasonable, the future actual developments and future actual results may vary considerably from the assumptions and estimates due to many external and internal factors. For example, matters to be mentioned in this connection include changes in the general economic conditions, competitive product and pricing pressures and developments in the regulatory framework. CropEnergies AG assumes no responsibility and accepts no liability for future developments and future actual results achieved being the same as the assumptions and estimates included in this presentation. This presentation includes percentage and number rounding. 19