Analyst Conference, 18 May 2016 Joachim Lutz, CEO Dr. Stephan Meeder, CFO

Transcription

1 Analyst Conference, 18 May 216 Joachim Lutz, CEO Dr. Stephan Meeder, CFO

2 Agenda Highlights Developments in the markets and in the company Financials und outlook CropEnergies AG, Analyst Conference, 18 May 216 2

3 Highlights of fiscal year 215/16 Corporate environment and markets Climate protection and transport require new impetus Biofuels deliver higher greenhouse gas savings Europe and iluc: facts Better prices for bioethanol and raw materials CropEnergies: quality before quantity Energy price fluctuations required careful decisions Diversification beyond fuel sector Flexible use of capacity to optimize earnings Financial statement 215/16 Revenues below previous year as expected Operating result close to record level Dividend proposal Outlook: (At least) satisfactory financial year expected CropEnergies AG, Analyst Conference, 18 May 216 3

4 Key topic: carbon neutrality Objective of COP21: carbon neutrality until 21 Limit global warming to less than 2 C 1 st step: stop increase of global emissions 2 nd step: rapid reduction of emissions EU member states signed agreement Challenge: transport sector the only sector in the EU with rising emissions Reality in Germany: in 215 GHG emissions increased to 98 million tonnes 4% of the increase is caused by transportation Root cause: burning fossil fuels Policy focus is global warming and GHG reduction Source: UNEP, Emission Gap Report 215 CropEnergies AG, Analyst Conference, 18 May 216 4

5 GHG emissions in transport: solutions from two sides Development of new cars: takes time Increase of engine efficiency Lower weight of vehicles Efficient emission control devices Combination with electric drive Improvement of fuel: quickly realized Use of renewable carbon sources low-emission-fuels : renewable instead of fossil Ethanol: high energy density and certified savings of GHG Germany: CO 2 emissions of newly registered passenger cars (in g CO 2 /km) Deutschland: CO 2 -Emissionen von PKW-Neuzulassungen (in g CO 2 /km) Total Gasoline Diesel Target 221: 95 g CO 2 /km Quelle: Source: KBA, KBA, Eigene own Berechnungen calculations fossil renewable Light Photosynthesis Glucose CropEnergies AG, Analyst Conference, 18 May 216 5

6 Policy framework for renewable fuels EU: general targets 22 EU: blending targets and market reality Transport sector: 1% renewable energy (RED) Fuel: 6% less GHG emissions (FQD) EU: directive amendment adopted in 215 Conventional biofuels up to 7% (of 1%) Reporting on hypothetical iluc emissions Germany: system switch from 215 on Currently: reduction of GHG intensity of fuels by 3.5% From 217 on: -4%, from 22 on: -6% Experience GHG savings becomes product property Industry invested and improved GHG savings to more than 6% RED-target Market 215 7% 6% 5% 4% 3% 2% 1% % Germany: GHG savings of biofuels 49% 62% 45% 6% 212 Q Q1 215 Bioethanol EtOH FAME/HVO % 2% 4% 6% 8% 1% Source: Eurostat Biodiesel Source: BLE (215) CropEnergies AG, Analyst Conference, 18 May 216 6

7 Bioethanol: no land competition in Europe Little land use for bioethanol Use of high-yield plants such as wheat (8-1 t/ha) and industrial sugar beet (1-15 t sugar/ha) Use of feed grains, no bread wheat EU still net exporter of grains (215/16: 26 million t) German bioethanol industry Origin of raw material: Europe (no overseas imports) No cultivation in monocultures Complete processing to equal parts of ethanol and proteins as well as biogenic carbon dioxide EU28: net exports 215/16 (million t) Grains Source: BDBe (213) Soybeans/soybean meal Source: EU Commission (215) CropEnergies AG, Analyst Conference, 18 May 216 7

8 Agenda Highlights Developments in the markets and in the company Financials und outlook CropEnergies AG, Analyst Conference, 18 May 216 8

9 Market development: Consumption of fuel ethanol in 215 EU: decrease to 5.2 million m 3 (-3%) Germany: decrease to 1.5 million m 3 (-5%) Higher GHG savings lead to smaller volumes at the pump Bioethanol blending share: 4.1 cal.-% E1 market share 13%; 2.5 (2.8) million t France: unchanged at 79, m 3 Bioethanol blending share: 6 cal.-% E1 market share: 33% (early 216: 36%) Environmental objectives need E1 Accelerate next steps of GHG savings targets Reduce tax disadvantage of E1/petrol EU: Consumption of fuel ethanol (1, m 3 ) 8, 6, 4, 2, 3, 2, 1, Other EU France Germany Source: F.O. Licht E1 in France and Germany (1, t) Germany France E1 share in Germany E1 share in France % 3% 15% % Source: BAFA, SNPAA CropEnergies AG, Analyst Conference, 18 May 216 9

10 Super-E1/E2: Reliable and affordable climate protection Fleet-compatible and proven example of Germany Lower GHG emissions for 3 million cars E1 for all German petrol cars saves 3 million t CO 2eq equals 1.7 million zero-emission cars Automobile association finds no damages to approved cars Test bench trials verify excellent fuel properties More than just CO 2 -reduction Germany: passenger car fleet on Total: 45.1 million passenger cars Low-cost for drivers E1 price at the pump 2 -ct./litre cheaper than Super No higher cost for new cars Petrol Diesel LPG Natural gas Hybrid Electric in 1, of passenger cars Source: KBA 13 years of automotive history: it is time for a better fuel CropEnergies AG, Analyst Conference, 18 May 216 1

11 ( /t or /m 3 ) ( /m 3 ) Price developments in the relevant markets Higher but more volatile ethanol prices End of February 216: 51 (444) /m 3 Decoupling from political oil price Seasonality/tank situation in Rotterdam Prices in USA/Brazil currently at 38 /m Fuel Ethanol T2 FOB Rdm. Premium Gasoline 1 ppm FOB ARA Decreasing EU grain prices due to excellent harvests 215/16 Worldwide production of 1,992 million t only slightly below previous year s record EU harvest (31 million t) above average and domestic consumption (283 million t) Discount for feed wheat used for ethanol Fuel EtOH T2 FOB Rdm. Gross profit for wheat-etoh Gross raw material costs Euronext Paris Wheat No. 2 Nettorohertrag für Weizen-EtOH CropEnergies AG, Analyst Conference, 18 May

12 EU bioethanol balance: ready to deliver more Consumption 215: 7.7 million m 3 (-1.2%) fuel: 5.2 million m 3 (-2.6%) 216: 7.6 million m 3 (-1.2%) Consumption of bioethanol (million m 3 ) 1 Fuel Non-fuel Production fuel: 5.1 million m 3 (-2.8%) 215: 7.1 million m 3 (-1.2%) fuel: 5. million m 3 (-4.2%) 216: 7.2 million m 3 (+.1%) fuel: 5.1 million m 3 (+1.7%) Production of bioethanol (million m 3 ) Fuel Non-fuel Capacity: approx. 9 million m 3 /a Source: F.O.Licht CropEnergies AG, Analyst Conference, 18 May

13 Strategy 1: Diversification beyond fuel sector Strengthening of neutral alcohol business High-quality food-grade neutral alcohol opens up new market segments Completion of investment in neutral alcohol plant in Zeitz Investment volume: 27 million Capacity: 6, m 3 /a High capacity utilization within short period of time Produktionsmenge 9M 215/216 Marketing of neutral alcohol by Ryssen Alcools About 5% of production volume is sold outside fuel ethanol sector fuel 5% non-fuel 5% CropEnergies AG, Analyst Conference, 18 May

14 ( in 1. m³) Strategy 2: Production management focussed on earnings Active management of capacity utilization High capacity utilization of plants in Zeitz, Wanze, and Loon-Plage Temporary standstill of plant in Wilton Adaptation to price and market developments Use of standstill for investments in plant improvements As expected, lower production Bioethanol (incl. neutral alcohol): 837, (1,56,) m 3 Dried food and animal feed products: 352, (537,) t 1,2 1, Production of bioethanol (1, m 3 ) -21% 1, /15 215/16 CropEnergies AG, Analyst Conference, 18 May

15 Agenda Highlights Developments in the markets and in the company Financials und outlook CropEnergies AG, Analyst Conference, 18 May

16 Overview 215/16 Revenues Bioethanol production 723 (827) million 837 (1,56), m³ - 13% - 21% EBITDA Operating profit Income from operations Net income (25.2) million 86.7 (-11.2) million 68.7 (-39.4) million 42.6 (-58.) million + 96 million + 98 million + 18 million + 11 million Net financial debt (to 28/2/215) (-15.1) million + 84 million CropEnergies AG, Analyst Conference, 18 May

17 (in million) (in million /, m³) 1. Income statement (I) (in million) 215/16 214/15 Δ Δ Revenues % EBITDA* Margin 16.8% 3.% Depreciation* % Operating profit *without restructuring costs and special items Revenues/ Production 884 1, Revenues decrease to (827.2) million under previous year 213/14 214/15 215/16 Production of bioethanol and food and animal feed declines Temporary standstill in Wilton High utilization and regular maintenance phases in Wanze / Zeitz 1 8 Operating profit 87 Significantly higher bioethanol prices partially compensate the lower production volume /14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May

18 (in, m³) (in, m³) Revenues Revenues decrease by -13% to 723 (827) million Bioethanol: Improved price level (market average** 565 (476) /m³) Sales decreases by 22% to 997 (1,283) -286, m³ Own production: 837 (1,56) -219, m³ + Trading volume: 178 (229) -51, m³ - Tolling for 3 rd parties/change in stock: -18 ( -2) -16, m³ Food and animal feed: Beneficial price increase for gluten and DDGS/ProtiGrain Sales decreases by 31% to 366 (528) -162, t Germany 5% Sales 215/16 Other countries 5% 1,4 1,2 1, ,4 1,2 1, Production bioethanol 1, /14 214/15 215/16 Sales volume bioethanol 1,283 1,12 227* * 16* 1, * Trading volume / Tolling for 3rd parties/ Change in stock ** NYMEX Ethanol (Platts) T2 FOB Rdam T2 (Future Cont. 1) 213/14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May

19 (in million) (in % of total output) (in million) EBITDA 15 EBITDA (in million) 215/16 214/15 Δ Δ Revenues % Total output % Cost of materials* % Spread (gross) % Further oper. expenses/income* % EBITDA* *without restructuring costs and special items Total output decreases by 12% - 13 million Cost of materials declines by 26% million Spread increases to 28 (15) % of total output + 81 million EBITDA increases to (25.2) million Improved selling prices for bioethanol Low raw material prices favour the earnings situation /14 214/15 215/16 Spread (gross) % % 15% /14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May

20 (in million) (in million) Operating profit 15 EBITDA (in million) 215/16 214/15 Δ Δ Revenues % Total output % % Cost of materials* % 9 Spread (gross) % in % of change investories 27.8% 14.6% Further operating expenses / income* % EBITDA* % Depreciaton* % Operating profit Margin 12.% neg. 213/14 214/15 215/16 *without restructuring costs and special items Depreciation decreases slightly to 34.8 (36.4) million 1 8 Operating profit 87 Operating profit improves considerably to 86.7 (-11.2) million /14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May 216 2

21 (in million) (in million) Income from operations (in million) 215/16 214/15 Δ Δ Revenues % EBITDA* Margin 16.8% 3.% Depreciation* % Operating profit Restructuring costs / special items At equity result Income from operations *without restructuring costs and special items Restructuring costs /14 214/15 215/16 Income from operations Restructuring costs of (-28.4) million mainly relate to the temporary closure of the production plant in Wilton Income from operations increase by 18 million to 68.7 million /14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May

22 (in million) Income statement (II) (in million) 215/16 214/15 Δ Δ Revenues % EBITDA* % Operating profit Restructuring costs / special items Net earnings for the period At equity result..3 Income from operations % Financial result Earnings before income taxes Taxes on income Net earnings for the year /14 214/15 215/16 Earnings per share (in ) % *without restructuring costs and special items Financial result -5.7 (-3.7) million including currency effects Taxes on income of -2.3 (-14.9) million (tax ratio: 32%) Net earnings for the year increase remarkably to 42.6 (-58.) million CropEnergies AG, Analyst Conference, 18 May

23 (in million) Cash flow (in million) 215/16 214/15 Δ Cash flow Change in net working capital Cash flow (+) / Investments (-) 87 Net investments Exchange rate changes et al Free cash flow before dividends Dividends for prior year Free cash flow /2/216 28/2/215 Δ Net financial debt Cash flow improves strongly to 87.3 (5.3) million Investments only about half of previous year s level Positive free cash flow allows for significant reduction of net financial debt /14 214/15 215/16 CropEnergies AG, Analyst Conference, 18 May

24 (in million) (in million) Balance sheet structure (in million) 29/2/216 28/2/215 Δ Δ Net financial debt Assets Non-current assets % Current assets % Total assets % Liabilities Shareholders' equity % Non-current liabilities % Current liabilities % Total liabilities and equity % -2 Net financial debt (NFD) Equity ratio 62% 52% Gearing (NFD/Equity) 18% 45% Equity increases due to net income in 215/16 Equity ratio climbs to 62% Net financial debt strongly decreased compared to previous year Shareholders' equity CropEnergies AG, Analyst Conference, 18 May

25 Dividend (in per share) 215/16 214/15 Earnings Cash flow 1..6 Dividend*.15. Payout ratio 31% % *proposal Share price end of business year Dividend yield 3.9% - Strong cash flow Fair dividend payout ratio and attractive dividend yield CropEnergies AG, Analyst Conference, 18 May

26 Outlook 216/17e Revenues of 625 to 7 million Operating result from 3 to 7 million Restructuring costs up to 17 million per year in Wilton CropEnergies AG, Analyst Conference, 18 May

27 Financial Calendar 6 July 216: Interim report 1 st quarter 216/17 12 July 216: Annual General Meeting October 216: Interim report 1 st half 216/17 11 January 217: Interim report 1 st -3 rd quarters 216/17 17 May 217: Annual report and press and analysts conference financial year 216/17 Stock information ISIN: DEALAUP1 Symbol: CE2 Bloomberg / Reuters: CE2 GY / CE2G.DE Transparency standard: Prime Standard Contact CropEnergies AG Maximilianstraße Mannheim Investor Relations Dr. Lilia Filipova-Neumann Phone: +49 (621) ir@cropenergies.de Public Relations / Marketing Nadine Dejung 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. CropEnergies AG, Analyst Conference, 18 May