2015 annual results 31 March 2016, Paris FROM NATURE TO YOU

Transcription

1 2015 annual results 31 March 2016, Paris FROM NATURE TO YOU

2 AGENDA 2015: Another successful step in creating value and lasting operating profitability Return to growth Rigour and discipline put the financial position back on a sound footing A new reporting format for 2016 Reassessment of our industrial footprint for an improved alignment with our Bright2020 strategy 2016: On the road to Bright2020

3 2015: Another successful step in creating value and lasting operating profitability

4 Success of the "Conquest, Cash & People" plan Safety Recurring Ebit 26.3m % Revenue 397.8m Safety -29.8% Frequency rate -25.0% Severity rate Recurring EBITDA 51.4m % % Inventory to sales ratio 41% vs 49% in 2014 Net financial debt -30m -19% Free cash flow Cash flow 56m DSO -9 days 55 days 4

5 Return to growth

6 Return to growth Revenue ( m): 2015 vs Current exchange rates +21.5% 11.8% Currency effect % Organic growth +5% 4.7% Consolidation scope effect Organic growth 6% 5.0% - 4.3%

7 Robust sales for our three main businesses PERSONAL CARE +39.1% +28.4% Current exchange rates Like-for-like (constant currency and structure) Winning strategy 9.6m Revenue 2.4% 2.6% TOLL MANUFACTURING 31.2% Breakdown of revenue by business (% of 2015 revenue) 63.8% FOOD AND BEVERAGE NUTRITION AND HEALTH +27.3% Current exchange rates Like-for-like (constant currency and structure) +14.4% Successful repositioning 124.1m Revenue +6% Current exchange rates Like-for-like +1.9% +19.0% Current exchange rates Like-for-like +0.1% Discontinuation of krill extraction 10.4m Revenue o.w. 6.0m krill toll manufacturing. Optimization of the product mix 253.8m Revenue o.w. consolidation scope effect of 18.5m 7

8 Positive contributions from all regions % AMERICAS 205.0m +3.7 % EUROPE/AFRICA 145.5m % ASIA/PACIFIC 51 % of sales 37 % of sales 47.4m 12 % of sales Data at current exchange rates at

9 Rigour and discipline put the financial position back on a sound footing

10 A very significant improvement in WCR Change in WCR ( m) Objectives surpassed INVENTORY 41% vs. 49% of sales 31/12/ /06/ /12/ % of sales 46% of sales 39% of sales DSO - 9 days 55 days Very positive effects from new governance Coordination credit management and commercial teams Optimization of the product portfolio and reduction in number of SKUs 10

11 Reduction in CAPEX In line with the execution of the industrial strategy Normalization of the ratio CAPEX/Revenue 2015 CAPEX well-managed 29.8 Change in CAPEX ( m) % revenue 5.2%* CAPEX Reyssouze land and building Categories of industrial expenditures Quality 5% Extension Growth 33% Productivity Efficiency Maintenance 43% Health Safety Environment 19% *excluding the purchase of the Reyssouze land and building for 3.8m 11

12 Strong growth in free cash flow from operations driven by profitability and containment of WCR Change in FCF ( m) m 10.8 FCF 2014 Cash flow from continuing operations Taxes paid WCR CAPEX Other FCF

13 30m decrease in net financial debt Reduction in gearing from 4.4 to 2.5 Change in net financial debt ( m) % 35.4% Net financial debt/equity (gearing) Net financial debt/ebitda Increase in net cash 31/12/14 New borrowings Repayment of financial liabilities Increase in net cash Fair value adjustments Translation differences 31/12/15 Bank covenants respected Repayment of borrowings 13

14 Return to operating profitability

15 2015 income statement by nature (total cost model) Return to operating profitability IFRS ( m) restated Change (%) Revenue % Gross margin Gross margin (%) 57.7% 59.3% Staff costs (90.0) (77.3) External charges (92.0) (83.2) Current EBITDA % Current EBITDA margin (%) 12.9% 11.2% Amortisation, depreciation and impairment (25.1) (22.0) Current operating income % Current operating margin (%) 6.6% 4.5% 15

16 Recurring operating profitability In line with the implementation of Bright2020 measures Change in Current Operating Income ( m) 6.6% % Recurring operating profitability % sales +77.3% Growth in current operating income Current operating income 2014 Gross margin Staff costs External charges Depr. amort., prov. Other Current operating income pts Current operating margin 16

17 Staff costs Improvement in % of sales Change in staff costs ( m) % 22.6% of sales +4.9% Like-for-like Staff costs 2014 Average salaries (inflation / bonus) Headcount Palafolls Constant Translation staff costs effects 2015 Consolidatio n scope effect Staff costs % Current scope and exchange rates Annual performance remuneration through a bonus system Targeted recruitments for specific operating positions 17

18 External charges Stable at constant structure & exchange rates, significant improvement in % sales Change in external charges ( m) % 23.1% +5.9 of sales % Like-for-like External charges 2014 Change in operating expenses Constant external charges 2015 Currency effect Consolidatio n scope effect External charges % Current scope and exchange rates Very good control over operating expenses Increased production costs linked to industrial activity in H

19 A new reporting format for 2016 Change from presentation by nature (total cost model) to a presentation by function (cost of sales model) better adapted to understanding of our strategic priorities

20 2015 income statement New format with the presentation by function IFRS ( m) restated Change (%) Revenue % Cost of goods sold Gross margin on COGS % Gross margin on COGS (%) 23.8% 22.6% Other current income Selling and marketing expenses Research and development expenses General and administrative expenses Obsolete inventories Current operating income % Current operating margin (%) Amortisation, depreciation and impairment Obsolete inventories Current operating EBITDA % Current operating EBITDA margin (%) 13.6% 11.5%

21 Margin on Cost of Goods Sold (COGS) Measure of actual industrial performance for the year Change in gross margin on COGS ( m) m Absolute value 22.6% +1.2 pts Gross Margin / COGS 23.8% 23.8% Gross Margin on COGS/Sales Taking into account all production-related costs, including labor Impact of destocking in H Alignment with the Bright2020 strategy on industrial efficiency 21

22 Better evaluation of our expenditures by function in relation to our Bright2020 strategy Breakdown of our expenses by function ( m) Science and Innovation Go-to-Market Execution and Simplification Trend % of sales 3.0% of sales 6.4% of sales % of sales % of sales % of sales Research and Development Marketing and Selling General and Administrative 22

23 On the road to Bright2020

24 Our main objectives for %-10% Organic growth 20% EBITDA margin 10% New product sales / revenue 25% Share of sales in emerging markets CARE EXECUTE GROW 24

25 The main guidelines for our actions for 2016 Activating the main performance drivers by 2020 CARE EXECUTE GROW INITIATIVES 2015 OBJECTIVES 2016 Managerial standard Leadership team Remunerating performance - Short term (bonus) - Long-term (performance shares) > > Sharing a common culture Alignment of interests 25

26 The main guidelines for our actions for 2016 Activating the main performance drivers by 2020 CARE EXECUTE GROW INITIATIVES 2015 OBJECTIVES 2016 Launch a review of our industrial footprint Creation of three centers of expertise Reorganisation of the pharmaceutical activity - Closure of Palafolls (Spain) - Dedicated production unit Reyssouze (France) - Nutraceutical specialization of the Milan site (Italy) Divestment from the JV with Aker BioMarine > > > > > Continuing to reduce complexity Industrial rationalization Simplifying flows Pricing power Centralisation of indirect purchases 26

27 The main guidelines for our actions for 2016 Activating the main performance drivers by 2020 CARE EXECUTE GROW INITIATIVES 2015 OBJECTIVES 2016 Commercial governance Redeployment of R&D Network of Springlabs > > > Accelerate innovation Accelerate Go To Market Alignment of industrial capacities 27

28 Innovation driving our development Multiplying the collaborative gateways INNOVATION Organic Innovation Open Innovation Application labs INGENIUM Advanced research Clinical studies Accelerator Partnerships Customer collaborations Concepts - Applications 28

29 Open Innovation Multiplying innovation opportunities Complementary expertise Gain exclusive access to certain markets Doug Klaiber CEO Naturex-DBS TAG Technology Advisory Group comprised of recognized economic and scientific stakeholders INGENIUM Sharing technological progress Partnerships with cutting edge startups 29

30 Juice from cold-pressed raw vegetables A technology unique on the market Cold-pressed sports drink Combines: beet, celery juices with ginseng extract and high vitamin C acerola Without sugar additives New technology of Vegetable Juices Inc. Unpasteurized Premium Juice (UPJ) A non-thermal and non-enzymatic processes to preserve the nutritional qualities and health benefits of the raw vegetables First leading player to offer extra fresh vegetable juice on an industrial scale 30

31 An innovative cardiovascular health positioning Exclusive license agreement with Barry Callebaut Exclusive license agreement with Barry Callebaut Extraction of flavanols contained in cocoa beans Extraction patented by NATUREX Ready to market solution An innovative positioning for cardiovascular health segment Exclusive health claim for 5 years Efsa 13.5 (blood vessel elasticity) 42 clinical studies conducted by Barry Callebaut COCOACTIV: 3 targeted positionings Brands-Distribution networks-consumers Patented extraction technology Open Innovation INGENIUM Medical Network Prescriber: Physician Pharmacy networks Prescriber : Pharmacist Network Retail Autoprevention, well-being 31

32 Disruptive technology EUTECTYS to capture the profound nature of each plant A BtoB to C approach Sustainable sourcing (ex.: Cherry Blossom - Provence) Strong concentration in assets and proven efficacy Combating photoageing with the Luberon cherry blossoms Increased phytochemical profile Solid cosmetic benefits Anti-inflammatory properties Antioxidant properties A disruptive technology Research license agreement with Scionix (Professeur Andrew Abbott) A patented eco-extraction process Eutectigenesis High resolution extracts from the plant core (NaDES: Natural Deep Eutectic Solvent) INGENIUM 32

33 A multi-year partnership with Swisse A multi-year partnership with Swisse Sourcing of selected phytoactives Developing integrated solutions Privileged emerging country access Anticipating consumer expectations Traceability-Quality Sharing innovation Reducing time-to-market 33

34 2016 Year 1 of execution of the Plan Bright Gearing up for action 2016 Execute and deliver Growth on track Improving profitability Accelerate innovation Confirming profitability Implementation of the governance Developing our skills 34

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