Embed Size (px)
Citation preview
2017 ANNUAL RESULTS
CONTENTSANNUAL HIGHLIGHTS #01
2017 ANNUAL RESULTS #02TRENDS AND OUTLOOK #03
2
APPENDICES #04
#
HIGHLIGHTS
Our transformational drivers
3
01
Olivier Rigaud – Chief Executive Officer
Our transformational drivers Creating optimal conditions for growth and performance
4
• 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
2017 Results Building a solid and sustainable model
5 * Recurring operating EBITDA
€404.9m
(currentexch. rates)
+0.1%
SALES
€64.0m
(% of sales,current exchange rates)
15.8%
EBITDA*
(% of sales,Current exchange rates)
41.3%
WCR
Naturex PathfinderOur responsible engagement, a creator of value for our stakeholders
6
51%Sales generated from
Pathfinder approved raw materials
RESPONSIBLE SOURCING
CO2EMISSIONS
WATER CONSUMPTION WASTE
- 9%Quantity of
water consumption
86%NHIW recovered
- 4%Tonnes CO2eq
Naturex PeopleOur diversity as a performance lever
7
1700employees
WORKFORCE
31%women
69%men
BALANCE
25nationalities
5continents
DIVERSITY SAFETY
ENTREPRENEURIAL SPIRIT
CARINGPASSIONCREATIVITY
INTEGRITY
40%
Safety:be involved,be aware!
2020 target100%
2 017 Sales by businessRefocusing on our two strategic platforms
8
MY NATURAL FOOD
MY NATURAL SELFCARE
€213.4m of which a €5.5m consolidation scope effect 33%
14%
53%
My Natural Selfcare
Sales by business(% 2017 sales)
Other activities
My NaturalFood
€135.1mof which a €0.2m consolidation scope effect
+ 2.6% (current exch. rates)
- 1.8% (current exch. rates)
+ 1.4% (constant exch. rates)
- 1.3% (current exch. rates)
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 .
2017 total revenue : €404.9m of which Other activities 56.4m
2017 sales by regionRegional focus on volatile markets
9
35%
16%8%
41%EMEA
Sales by region(% 2017 sales)
Asia /Pacific
NorthAmerica
LatinAmerica
Nor
th
Amer
ica
€170.1mof which a €3.8m consolidation scope effect
EMEA €140.9m
of which a €1.8m consolidation scope effect
Latin
Am
eric
a
€30.8m
Asia
/ Pa
cific
€63.1m
- 1.6% (current exch. rates)
- 4.5% (current exch. rates)
+ 4.1% (current exchange rates)
+ 16.3% (current exchange rates)
+ 2.7% (constant exch. rates)
- 4.8% (constant exch. rates)
+ 5.8% (constant exch. rates)
+ 16.6% (constant exch. rates)
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.
2017 total revenue : €404.9m of which a €5.7m consolidation scope effect
A leaner and more concentrated organisationAlignment of responsibilities
10
60SLT members
Senior Leadership Team
Key managers of all countriesAll Departments represented
Coordinating team effortsRegional and local level
Talent ManagementThe foundation of the culture
A new incentive policy
Execution of the strategyRoadmap / Action plans
A reinforced regional organisationEncouraging a Go TO MARKET culture
11
4Senior Vice-President
in the 4 regional markets
Key AccountsSales Force
R&D18 clinical studies
Markets/Customer ProximityGlobal – Regional - Local
Front-LineCross-corporate
Expandingthe commercial
coverage
Ingenium> 10 partnerships
Springlabs11 establishments
A refocused product portfolioPriority on customer satisfaction
12
6,500
Accelerating the reduction of SKUs
> 8,500
in2015
in2017
+10%Satisfaction
CUSTOMERS(OTD)
2015-2017
Customer Focus
Product portfoliomore VALUE
and TARGETED
4 key categories
-€10mAggregate impact
on sales2015-2017
Rationalisation
Building a Customer-Centric approachEnergising the sales force
13 * NPD: New Product Development over the last three years
2015 2016 2017
+ 6%+ 2%
A more reliable and solid
project pipeline2015-2017
CUSTOMER visits4 regions2016-2017
X 1.5
Categorisation of the customer portfolio
commercial capacitiesNATUREX network
and the DISTRIBUTIONnetwork
Greater customer proximity
8.2% of sales
vs. 5.5% of sales in 2015
IncreasingCustomer Intimacy
NPD*
Acquisition of a roasting* technologyInnovation and synergies 360°
14
A reinforced model for Vegetable Juices Inc.
* Acquisition of the Haliburton Intl Foods assets.Roasting: A technology for stewing*** fruits and vegetables
Additional technological know-howRoasting
Natural vegetable-based solutions Purées, sauces, roasted veggies
Portfolio synergiesFlavouring FoodstuffColours, texturesSavoury, CulinaryEthnic & bold flavours
Expanded regions for sourcing
Strengthening and diversifying the customer base
:
Acquisition of Swedish OatFiberMarket differentiation in the nutrition segment
15
Product convergence between functional food and natural nutrition
Expertise coveringthe entire value chain
Customer awarenessHEALTH BENEFITSEFSA claim 13.1(Lowering cholesterol rates)
A complementary rangeCardiovascular health segmentOat beta glucans
Diversification and added valueLow processed dietary fiber
:
In summaryAn organisation fully focused on execution
16
• 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
#
ANALYSIS OF 2017 ANNUAL RESULTS
Simplification measures and financial disciplineproduce positive results
17
02
François de Gantes – Chief Financial Officer.
2017 Results Building a solid and sustainable model
18 * Recurring operating EBITDA
€404.9m
(currentexch. rates)
+0.1%
SALES
€64.0m
(% of sales, Current exchange rates)
15.8%
EBITDA*
(% of sales,Current exchange rates)
41.3%
WCR
* Recurring operating EBITDAActivating the key performance drivers
20
Key actions
Miscellaneous impacts
15.8%of sales
15.2%of sales
13.6%of sales
€1mconsolidation scope effect
from acquisitions
€0.4mforeign exchange
effect
Optimisationof the cost structure
Generatingincreased valuefrom the product mix
Simplificationand Lean
€4.2mobsolete inventory
In €m
54,261,4 64,0
2015 2016 2017
recurring operating EBITDA:2015-2017
Transport costsA global management of transport
21
3.43%Transport costs / Sales
vs. 4.02% in 2015
Supply ChainGovernance
+ 12%On Time Departure
2015-2017
Inventorycategorisation
Airfreight2015-2017
/ 10
Optimisationof flows
Significant decrease in transport costs
2015-2017In €m
15,2 13,9
2015 2016 2017
- €2m16.0
Pricing
Step 1: Cost +• Impact of inflation• Identifying low statistical
prices• Managing the volatility of
raw material prices
• Leveraging factors of differentiation
Developing a global approach
22
Long-term objectives From Cost + to Value Pricing
Approach***responsible and
sustainable
Strategy
Monthly Committee Meeting CFO + CCO
+Sales Management Control
Centralising Role ofCategory Managers
and pedagogy with Business Developers
Governance
Guidelinesfor prices
A single Price ListAccessible
from the CRM
Strategic toolsDetecting anomalies
Tools
100bpsEBITDA impact
2016-2017
Industrial performanceSimplification
Lean ManufacturingDeploying a Lean management culture at all our sites
23
SKUs &Packaging
- 20%SKUs
Intra- Groupflows Yields
Utilisationof capacity
+ 20%2 Extraction projects in 2017
10 projects in 2018
+ 4%2016-2017
Better S&OP coordination
Positive impact on WCR Positive impacts on the margin on COGS
Better use of raw materials
- 50%Packaging
2016-2017
Positive impacts on Sustainability
- 7%Total
- 15%Raw Materials
and Semi-finished goods2016-2017
Expenses by function
• A 10% reduction inoperating expenses
• Good controlover staff costs
• Rationalising the support functions
• Finalisation of the reorganisation of the sales force
• More targeted R&D spending
A better allocation of our resources
24
In €m
14,0
29,736,2
14,0
28,2
35,2
Recherche et Développement Marketing et Commercial Général et Administratif
3.5%of sales
3.5%of sales
7.0%of sales
7.3%of sales
8.7%of sales
9.0%of sales
Net operating income
25
33,9
23,3
Résultatopérationnel
courant
Restructurations Dépréciationd'actifs non
courants
Frais decroissance
externe
Autres produitsopérationnelsnon courants
Résultatopérationnel
+ 0.3
In €m
+ 2.6
+ 0.1+ 7.8
€7.8mImpairment of
assetsvs. - €6.4m in 2016
€2.6mAcquisition-related
expensesvs. - €0.7m in 2016
• €2.6mimpairment of the site in Valencia (Spain)vs. €3.5m already recognised in 2016
• €5.3mImpairment of Roha assets (India)
Impacted by the impairment of non-current assets and acquisition-related expenses
• Roasting technology of Haliburton Intl Foods
• Swedish Oat Fiber
From Operating Profit to Net Profit
26
23,3
11,8
Résultatopérationnel
courant
Coût del'endettement
financier
Autres produitset chargesfinanciers
Résultat avantimpôt
Charge d'impôt Résultat net
In €m
17.2 + 5.3
Impact of borrowing costs and the tax expense
31.1%2017 effective tax
rate
US$2.2mFavourable
impact of theUS Tax Reform
€1.7mLoan issuance costs for the
preceding structured loan
€14.9mUnrecognised deferred tax
assets
+ 7.4
+ 1.2 -€0.7mForeign
exchange loss
+€2.1mNet proceeds
from the sale of Biopolis shares
196,4170,8
31.12.2016 31.12.2017
Working capital requirementsPositive effects of inventory management and trade receivables collections
27
Acquisition Impact
- 0.9%
Inventory
38.3%of sales
Translation impact
- 2.9%
41.3%of sales
48.6%of sales
In €m
DSO
54 days
CAPEX
28
19,815,6
9,6 9,9
2016 2017
3.9%of sales excluding 2018
projectsinitiated in 2017
3.3%of sales excluding the acquisition
of SCI La Pinède shares
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.
Acquisition of stake in SCILa Pinède
2018 projects initiated in 2017
42%
39%
19%
Breakdown of industrial investments
EfficiencyOptimisationMaintenanceProductivity
ExpansionGrowth
HealthSafetyQuality
Environment
Investments focus on industrial efficiencies and growth
173,9 171,1
31.12.2016 31.12.2017
A sound financial position
• Renegotiation of the structured loanMaximum 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 ofHaliburton Intl Foods assets
• Put option on non-controlling interest held by CHILE BOTANICS shareholders€20.8m
Acquisitions financed from cash
29
Changes in net financial debt 2.6%
Average cost of the structured credit facility
2.67financial leveragevs. 2.83 at 31/12/2016
Bank covenants
respected
In €m
Volatility of the USDImpact on revenue and EBITDA
30
1,06 1,091,17 1,181,22
Q1 Q2 Q3 Q4
2017 2018
-€2.7mRevenue
-€0.9mEBITDA
2017 impactsAverage EUR/USD exchange rate
In summary
• Controls over the cost structure
• Optimised WCR
• Flexible financing capacity
Strong financial discipline
31
#
TRENDS AND OUTLOOK
Acting on opportunities to create lasting growth
32
03
Olivier Rigaud – Chief Executive Officer
Positioned to move forwardWell-positioned for anticipating evolving trends in our markets
33
• 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 positioningin Phytoactives
PHYTOACTIVES
PRESERVATIVES F&V & TASTE
COLOURS
PhytoactivesFrom nutraceutical to nutrition
• 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
Our development priorities
Market trends
Organic
Transparency Functional foodHealth
awareness
Traceability
Responsible sourcing
Natural nutrition
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
Nutrition
F&V & TasteDeveloping Foodstuff Flavouring
Market trends
Foodstuffflavouring
TasteClean label
Health
Clean label
Intuitive nutrition***
Low processed
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
• Three technology platforms (wet/dry/roasted)• Baby Food segment penetration (emerging countries)• Synergies for colours, preservatives, nutrition
Our development priorities
PRESERVATIVES
COLOURS
PHYTOACTIVES
F&V & TASTE
Taste
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
Natural coloursFocus on innovative solutions and the customer experience
Market trends
Clean label
Synthetic/naturelshiftin emergingcountries
Free E-Number
• 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
Our development priorities
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
Reliability
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
PreservativesA solution-based business model
Market trends
Regulatory developments
Consumer awareness
Shiftin emerging countries
• Expertise in the formulation of colours/preservatives• An expanded portfolio of solutions (antioxidants, active ingredients,
antimicrobials )• A more solid project pipeline
Our development priorities
Efficacy
PRESERVATIVES F&V & TASTE
COLOURS
PHYTOACTIVES
2018 outlookA year of execution and progress with our strategic priorities
38
Synergies and cross-selling
of our 4 key categories
• Accelerating the adaptation of our production facilities to market changes and the improved performances of our plans
• Priority on commercial execution
• Continuing our transformation to improveour profitability while investingin future growth
• Strengthening our leadership through external growth
PRESERVATIVES
COLOURS
PHYTOACTIVES
F&V & TASTE
#
APPENDICES
39
04
Our Mission
WE BELIEVE IN NATUREWe 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.
Source Convert Deliver
40
Our products & solutions offering
OUR STRATEGIC CATEGORIES
OUR STRATEGIC PLATFORMS
MY NATURAL FOOD
MY NATURAL SELFCARE
COLOURS SPECIALTY F&V PHYTOACTIVES ANTIOXIDANTS
41
Our corporate foundationActing for a better world
CREATED IN MARCH 2008, OUR FOUNDATION IS DEDICATED TO IMPROVING LIVING CONDITIONS IN THE COUNTRIES WHERE WE OPERATE
Environment, educationand health
Close to our factories and offices
Charitable with long-term focus
Open to employee commitment
>320,000€granted since creation
9countries
>50actions
12,000beneficiaries
42
Income statement
43
In €m 2017 2016
Revenue 404.9 404.4
Change in finished goods and in-progress inventory (14.6) (19.4)
Operating grants 2.1 1.7
Other operating income 4.5 4.1
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 33.9 31.5
Other non-current operating expenses (10.7) (7.6)
Other non-current operating income 0.1 2.9
NET OPERATING INCOME 23.3 26.7
Net borrowing costs (7.4) (6.3)
Other financial income and expenses 1.2 4.6
INCOME BEFORE TAX 17.2 25.1
Tax expense (5.3) (7.2)
NET INCOME FROM CONTINUING OPERATIONS 11.8 17.9
NET INCOME FROM DISCONTINUED OPERATIONS - 0.01
NET INCOME 11.8 17.9
Balance sheet
44
ASSETS
In €m - IFRS 31/12/2017 31/12/2016
Non-current assets 394.1 370.7
Goodwill 191.6 174.4
Other intangible assets 34.3 18.7
Property, plant and equipment 145.1 154.1
Non-current financial assets 0.1 -
Non-current derivatives 10.2 14.0
Deferred tax assets 12.7 9.5
Current assets 264.2 300.8
Inventories 154.6 184.5
Current derivatives 0.1 0.0
Tax receivables 5.6 7.7
Trade and other receivables 84.8 79.8
Current financial assets 3.6 2.9
Cash and cash equivalents 15.5 22.4
Non-current assets held for sale 0.0 3.3
TOTAL ASSETS 658.3 671.5
In €m - IFRS 31/12/2017 31/12/2016
Shareholders' equity 376.7 372.7
Non-current liabilities 178.4 169.2
Long-term financial debt 157.8 143.8
Non-current derivatives 1.4 2.5
Employee benefits 7.9 12.5
Deferred tax liabilities 11.3 10.5
Current liabilities 103.1 129.6
Current financial debt 28.2 51.8
Current derivatives 0.5 0.6
Current provisions 2.1 3.9
Tax payables 3.0 4.7
Trade and other payables 68.7 67.9
Short-term bank facilities and overdrafts 0.7 0.7
TOTAL EQUITY AND LIABILITIES 658.3 671.5
EQUITY AND LIABILITIES
Cash flow statement
45
In €m - IFRS 2017 2016
Cash flow from continuing operations 56.1 60.4
Taxes paid (5.9) (10.6)
Change in WCR 11.4 (38.1)
Net cash provided by (used in) operating activities 61.6 11.7
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 14.8 21.8
Opening cash and cash equivalents 21.8 57.9
Effect of exchange rate changes on cash (0.8) 0.3
FROM NATURE TO YOU
Visit us at www.naturex.com
