Full year results Amsterdam, 5 February 2015

Transcription

1 Full year results 2014 Amsterdam, 5 February 2015

2 Disclaimer The information contained herein shall not constitute or form any part of any offer or invitation to subscribe for, underwrite or otherwise acquire, or any solicitation of any offer to purchase or subscribe for, securities including in the United States, Australia, Canada or Japan. The information contained herein is not for publication or distribution into the United States, Australia, Canada or Japan. Neither this announcement nor any copy of it may be taken or distributed or published, directly or indirectly, in the United States, Australia, Canada or Japan. The material set forth herein is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale into the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the Securities Act ) or an exemption from registration. The securities of the company described herein have not been and will not be so registered. There will be no public offer of securities in the United States, Australia, Canada or Japan. Version 4 February hrs 2

3 Agenda 1. Highlights 5. Summary 2. Driving sustainable growth strategy 3. Full year 2014 financial results 4. SHV offer 3

4 Full year results in line with outlook - highlights Revenue 5,253.0 million EBITA million; up 3.9% Focus on growth Revenues increased by 0.3% Organic growth volumes increased by 2.2% Animal Nutrition EBITA margin 6.8% (2013: 6.2%) Fish Feed EBITA increased 2.8% to million Two Brazilian acquisitions complete country and species coverage Capital investments in Asia and Africa Joint venture in Nigeria Innovation agenda Basic earnings per share 2.21 Final dividend 0.75 Progress made on young animal feed, feed additives and shrimp feed Strategic partnerships more important Increased by 1.4% To be paid in cash SHV offer of includes final dividend of 0.75 Total dividend 1.05 (2013: 1.00) 4

5 Agenda 1. Highlights 5. Summary 2. Driving sustainable growth strategy 3. Full year 2014 financial results 4. SHV offer 5

6 Nutreco s three segments Revenue 2014: 5.3 billion EBITA* 2014: 266 million 1.8 billion 125 million 2.1 billion 134 million Animal Nutrition Fish Feed Compound Feed & Meat Iberia 1.3 billion 35 million Over 100 production plants in 35 countries 11 R&D units in 7 countries Multi national workforce of 11,000 employees *Including corporate costs 6

7 Our strategy Driving sustainable growth Higher value-added portfolio of nutritional solutions Premix, feed specialties and fish feed Growth geographies Latin America, Russia, Asia and Africa Sustainability throughout the feed-tofood chain 7

8 Global portfolio of branded specialty products LifeStart Health Efficiency 8

9 Animal Nutrition strategy Focus Higher value-added portfolio of nutritional solutions Solid positions Growth geographies, secure mature markets Global Marketing Link between R&D and customer needs Growth geographies 35% of EBITA from growth geographies EBITA margin EBITA operating margin 6-7% 9

10 Feed additives: significant growth potential Significant growth potential as large part of market still does not use feed additives to drive efficiency, health and antibiotic reduction Clear structure and responsibilities put in place to increase focus: five hubs in EMEA, US, Brazil, Southeast Asia and China Investing in feed additive sales specialists (~30 new positions in 2014) will help autonomous growth Strategic partnerships and acquisitions will accelerate autonomous growth path and increase critical mass 10

11 Strategic partnerships more important Nutreco aims to develop additional strategic partnerships in areas such as ingredient sourcing, product development and knowledge in order to deliver the right benefits to customers Renewed strategic partnership with ForFarmers : Purchase of premixes, feed additives and feed specialities Cooperation on research, innovation and the marketing of high quality nutritional solutions e.g. for the young animal feed sector 11

12 Brazilian acquisitions: Fatec and BRNova Acquisitions are good strategic fit; completes geographic, species and product coverage Fatec produces premixes and animal health products for broilers, layers, swine and dairy cows BRNova supplies premixes and feed specialties, mainly for poultry and swine Total pro forma annualised 2014 revenues of Nutreco Brazil approx. 185 million (prev. 110 million) Fatec BRNova Established Revenue 50 million 25 million Employees Volumes (mt) 20,000 15,000 12

13 Fish Feed strategy Volume growth R&D Non-salmonid Maintain leadership EBITA margin 5% volume growth Roll-out MicroBalance and Protec to other species Grow non-salmonid feed volume share to 50% of total Fish Feed volumes Grow salmonid feed volume in line with the market (5% CAGR) EBITA operating margin 6-7% 13

14 Oceans of opportunities Million tonnes Est. 8.3bn bn 140 BRAZIL CHINA ECUADOR JAPAN Aquaculture EGYPT HONDURAS TURKEY VIETNAM Wild capture for human consumption 2030 Source: FAO Fish to 2030 Prospects for Fisheries and Aquaculture, 2013 Population growth Increased incomes Aquaculture growth factors Health 14

15 A long term growing market FAO aquaculture forecasts 35% production growth over the period From 2014 onwards >50% of human fish consumption will be provided by aquaculture Salmonid feed consumption F (million tonnes, % change per year) 12% -2% 7% 2% By 2023 China will comprise 63% of world aquaculture production Kontali 2015 feed consumption estimates % -2% 8% 1% Worldwide increase of 2% forecast in 2015; Norway growth forecast of 1% Chile growth forecast of 2% % -4% 7% 2% 3% 0% 9% 5% Norway Chile Other countries Total Sources: Kontali feed consumption report, January 2015 OECD-FAO Agricultural Outlook

16 MicroBalance for shrimp feed MicroBalance concept applied to shrimp to allow for flexible feed formulations and lower the use of expensive fishmeal Results from field trials in Ecuador, Vietnam and Brazil show significant success in reducing fishmeal inclusion rates from 25-30% down to 15% A commercial launch plan is being developed and will be undertaken in

17 Joint venture in Nigeria New joint venture is a leading fish feed company JV with Durante, leading Nigerian fish feed supplier and existing distribution partner to invest in local production of extruded fish feed for Nigeria and wider West African region Nigeria is Africa s second largest fish producer after Egypt with >200,000 tonnes fish feed p.a., (mostly for catfish). Production is growing by 5 to 10% per year Transaction closed September Established 1999 Revenue 9 million Volumes 5,500 Employees 30 Mkt. share (extruded feed) 15% Ibadan 17

18 Agenda 1. Highlights 5. Summary 2. Driving sustainable growth strategy 3. Full year 2014 financial results 4. SHV offer 18

19 Revenue development full year 2014 ( x million) 5,237.2 Volume +2.2% Organic growth +1.2% Price -1.0% Acquisitions +1.6% FX -2.5% 5,253.0 x million % Animal Nutrition 1, , Fish Feed 2, , Compound Feed & Meat Iberia 1, , Total revenue 5, ,

20 Nutreco x million Delta % Revenue 3.867,1 5, ,5 5, ,2 EBITDA* , , ,1 EBITA* , , ,3 EBITA/Revenue 5.1% 5,6% 4.9% 5,9% Avg. capital employed 1, ,9 1, ,7 +17, ROACE (EBITA/ACE) 19.7% 17,9% 20.1% 21,9% Volume effect Price effect Acquisitions FX effect +2.2% -1.0% +1.6% -2.5% Operational highlights Volume effect was +2.2% driven by Fish Feed and Animal Nutrition EBITA Animal Nutrition up 12.0% to million EBITA Fish Feed up 2.8% to million *Before exceptional items 20

21 Animal Nutrition x million Delta % Revenue 3.867,1 1, ,5 1, ,2 EBITDA* , , ,1 EBITA* , , ,3 EBITA/Revenue 6.8% 5,6% 6.2% 5,9% Avg. capital employed 1.207, , , ROACE (EBITA/ACE) 19.1% 17,9% 17.4% 21,9% Volume effect Price effect Acquisitions FX effect +2.7% +1.2% +0.9% -2.9% Operational highlights Operating margin increased to 6.8% (2013: 6.2%) Increase in EBITA mainly due to better performances in Europe driven by young animal feed and feed additives Higher volumes and EBITA in Canada *Before exceptional items 21

22 Fish Feed x million Delta % Revenue 3.867,1 2, ,5 2, ,2 EBITDA* , , ,1 EBITA* , , ,3 EBITA/Revenue 6.3% 5,6% 6.5% 5,9% Avg. capital employed 1.207, , ,5 ROACE (EBITA/ACE) 24.1% 17,9% 26.3% 21,9% Volume effect Price effect Acquisitions FX effect +4.5% +0.6% +3.3% -3.8% Operational highlights Total fish feed volume (incl. acq.) was +10.2% to 2.0 mio mt Volume share of non-salmonid feed in tonnes was 41% (2013: 38%) Salmonid feed sales volume effect was +4.5% driven by strong first half year performance *Before exceptional items 22

23 Compound Feed & Meat Iberia x million Delta % Revenue 3.867,1 1, ,5 1, ,2-8.0 EBITDA* 251, , ,1 EBITA* 215, , ,3 EBITA/Revenue 2.7% 5,6% 2.9% 5,9% Avg. capital employed 1.207, , , ROACE (EBITA/ACE) 23.4% 17,9% 27.6% 21,9% Volume effect Price effect Acquisitions FX effect -1.9% -6.1% - - Operational highlights EBITA decreased to 34.9 million mainly due to lower meat prices The meat business succesfully replaced 75% of the lower sales to Mercadona by increased sales to other customers *Before exceptional items 23

24 Operating result (EBITA) million Delta abs. Delta % Animal Nutrition Fish Feed Compound Feed & Meat Iberia Corporate EBITA from continuing operations before exceptional items Restructuring (Reversal of) impairment charges Transaction related costs Income arising from terms of delivery and alliances Other Total exceptional items EBITA from continuing operations

25 Net result and EPS million Delta abs. Delta % EBITDA* Depreciation EBITA* Amortisation EBIT from continuing operations Net financing costs Share in results of associates Income tax expense Income tax rate 25.6% 24.9% Total result for the period Basic EPS ( ) *Including exceptional items 25

26 Balance sheet Assets million Fixed assets Intangible assets Other non-current assets Inventories Trade receivables Other current assets Cash and cash equivalents Total 2, ,619.3 Equity and liabilities million Equity Interest bearing debt Provisions Trade payables 1, ,031.3 Other liabilities Total 2, ,619.3 Net working capital Net debt

27 Cash flow from continuing operations million Delta abs. EBIT Depreciation and amortisation EBITDA Working capital movement Capital expenditure Other movements Free cash flow Cash conversion ratio (free cash flow/ebitda) 73.4% 56.9% Acquisitions

28 Business performance vs. guidance Full year guidance Organic volume growth per segment Animal Nutrition 2.7% -0.8% 3% Fish Feed 4.5% -1.4% 5% EBITA margin per segment Animal Nutrition 6.8% 6.2% 6-7% Fish Feed 6.3% 6.5% 6-7% Compound Feed & Meat Iberia 2.7% 2.9% 2-3% EBITA / Revenue 5.1% 4.9% 5-6% Return on average capital employed (ROACE) 19.7% 20.1% >15% Net debt / EBITDA <3.0 Interest coverage >5.0 Net debt / Equity <1.0 Basic EPS continuing operations ( ) % Dividend per share ( )

29 Agenda 1. Highlights 5. Summary 2. Driving sustainable growth strategy 3. Full year 2014 financial results 4. SHV offer 29

30 Attractive offer Full cash offer by SHV of per share (cum dividend) Attractive premium of 60% to closing price of 17 Oct. (last trading day before first offer) Values 100% of the ordinary shares 1 at 3,038 million Implied LTM EV/EBITDA multiple of 10.8x as per 30 Sep SHV supports Nutreco s growth strategy Offer in best interests of all stakeholders Acceptance threshold: at least 66⅔% of outstanding ordinary shares Deal certainty as SHV finances the transaction with cash from own available resources Full support and unanimous recommendation from Supervisory and Executive Board 1. Based on number of outstanding shares as per 20 October

31 Process going forward 9 February: EGM Unconditional Date: No later than 3 business days after the Closing Date Post-Closing Acceptance Period: Two weeks from Unconditional Date Closing Date at 17 February: Close of tender period at 17.40h CET Settlement Date: No later than 5 business days after the Closing Date Settlement of tenders in the Post-Closing Acceptance Period: No later than 5 business days after the end of the Post-Closing Acceptance Period 31

32 Total shareholders return since IPO in 1997 AEX Nutreco ( ) 1,200 1, TSR of 885% at a price of 45.25/share As per 30 January

33 Agenda 1. Highlights 5. Summary 2. Driving sustainable growth strategy 3. Full year 2014 financial results 4. SHV offer 33

34 Summary Strategic Operational Execute roadmap Financial Innovation agenda progress made on young animal feed, animal health, feed additives and shrimp feed Two Brazilian acquisitions completes species, product and geographic coverage Animal Nutrition EBITA increased by 12.0% to million Margin improvement Animal Nutrition 6.8% (2013: 6.2%) Fish Feed EBITA increased by 2.8% to million Focus on premix, feed specialties and fish feed Operational excellence in mature markets Growth geographies Latin America, Russia, Asia & Africa Final dividend of 0.75 EGM to discuss SHV offer to be held on 9 February SHV offer of to include final dividend 34

35 Thank you 35

36 FY results IR presentation index 1. Full year results Disclaimer 3. Agenda 4. Full year results in line with outlook - highlights 5. Agenda 6. Nutreco s three segments 7. Our strategy Driving sustainable growth 8. Global portfolio of branded specialty products 9. Animal Nutrition strategy 10. Feed additives: significant growth potential 11. Strategic partnerships more important 12. Brazilian acquisitions: Fatec and BRNova 13. Fish Feed strategy 14. Oceans of opportunities 15. A long term growing market 16. MicroBalance for shrimp feed 17. Joint venture in Nigeria 18. Agenda 19. Revenue development full year Nutreco 21. Animal Nutrition 22. Fish Feed 23. Compound Feed & Meat Iberia 24. Operating result (EBITA) 25. Net result and EPS 26. Balance sheet 27. Cash flow from continuing operations 28. Business performance vs. guidance 29. Agenda 30. Attractive offer 31. Process going forward 32. Total shareholders return since IPO in Agenda 34. Summary 35. Thank you 36. FY results IR presentation index 36