Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Results – FY 2014Palais Brongniart, Paris
2 April 2015
1
Meeting contributors
Alexis MAYERChief Human Resources
Officer
Waël KAIBIInterim Chief Financial Officer for transition
Maxime ANGELUCCIChief Operating Officer
Olivier RIGAUDChief Executive Officer
2
Presentation of 2014 annual results
New corporate governance
Annual highlights
Our priorities for 2015
Outlook
Contents
Analysis of 2013/2014 sales
32..8
306.9
327.3
-8.8 Krill
-7,2 Svetol
+8.3 +1.1
-1,0
+21,4
+0,6 Toll
-7,8 N&H
SALES 2013 TOLL MANUFACTURING /
KRILL
N&H / SVETOL US F&B PERSONAL CARE SALES 2014 CONSTANT
CURRENCY EFFECT CHANGE IN STRUCTURE (VJI,
CHILE)
SALES 2014 CURRENT
An
nu
al s
ales
an
d c
han
ges
by
bu
sin
ess
(€m
)
-8.2
2014 revenueDifferent effects impacted the level of our sales
Unfavourable global economic environment
Very significant deterioration in foreign exchange environment for first 9 months (negative impact cancelled out over full-year)
Macroeconomiceffects
Negative comparison base effects
for Toll Manufacturing(krill extraction sales)
Deterioration in market conditions for dietary supplements in the US
Negative comparison base from Svetol® sales in the US
Ramping up our Cranberry operations ( DBS)
Market condition effects linked to NATUREX's business
Group structure effects
Strong contribution from Vegetable
Juices Inc. after 7 months of consolidation
Contribution by Chile Botanics still marginal though very promisingdevelopment
-15.0
4
2014 revenuePositive effects from Food & Beverage organisational changes
Good organic growth mainly in the US
Acceleration in Q4 of 9.1%(at constant structure and exchange rates)
Very good performance by Vegetable Juices Inc. (+€20.8m)after only seven months of consolidation, mainly in Q4,despite pronounced seasonal effects in the beveragesegment
Vegetable Juices Inc. furthermore delivered good growth of13.2% for the 2014 full year
49,2 46,4 47,9 48,4
2,98,6 9,3
Q1 Q2 Q3 Q4
Sale
s in
€m
at
curr
ent
exch
ange
rat
es
2014 revenue by quarter
F&B VJI Chile Botanics
57.9
49.2 49.456.7
+15.8%Change at
current exchange rates
+15.9%Change at constant
exchange rates
+4.5%Change at constant
currency and structure
65.1%Group sales
€ 213.2 mAnnual sales
FOOD & BEVERAGE
5
2014 revenueTransition underway in Nutrition & Health business
Very disappointing level for sales, mainly in the US,impacted in particular by
− lower Svetol® sales in the US (-€7.6m)
− Maturity of the traditional nutraceutical market (dietarysupplements in capsule and tablet form) and emergence ofnew consumer practices
Strong growth of Pacran (+28%)
− Cranberry extracts with proven clinical benefits
− Investments on Health Claims (Canada, South Korea
− Continuous additions to clinical data on this ingredient
29,4
22,3 20,6
26,4
0,9
0,90,5
0,9
Q1 Q2 Q3 Q4
Sale
s in
€m
at
curr
ent
exch
ange
rat
es
2014 revenue by quarter
N&H Svetol US
27.325.9
23.221.1
NUTRITION & HEALTH
-13.7%Change at
current exchange rates
-13.3%Change at constant
exchange rates
-7.7%Change excl.
Svetol US sales at constant
exchange rates29.8%
Group sales
€97.5mAnnual sales
6
2014 revenuePromising growth for Personal Care
Good growth from a reenergised offering
Promoting Naturex's sourcing and extract purification know-how
A dedicated commercial approach targeting Key Accounts
Deployment of a Springlab devoted to cosmetics inAvignon: able to create innovative concepts incollaboration with our customers
1,6 1,6 1,7
2,0
Q1 Q2 Q3 Q4
Sale
s in
€m
at
curr
ent
exch
ange
rat
es
2014 revenue by quarter
+18.2%Change at
current exchange rates
+18.1%Change at constant
exchange rates2.2%
Group sales
€6.9mAnnual sales
PERSONAL CARE
7
2014 revenueSignificant deterioration in krill extraction sales
Very significant decline in krill extraction sales (-€8.8m)impacting Toll Manufacturing
A difficult market for Omega-3-based products in 2014(smear campaigns in the press) after a very strongdemand in 2013
Transfer of the krill extraction business to the Houstonplant (JV with AKER BioMarine) completed in H2 2014currently in phase of technical trials
1.3 1.20.5
1.7
1.7
3.3
0,1
0,01
Q1 Q2 Q3 Q4
Sale
s in
€m
at
curr
ent
exch
ange
rat
es
2014 revenue by quarter
Toll Manufacturing Krill Extraction
1.7
3.0
4.5
0.6
-45.7%Change at
current exchange rates
-45.0%Change at constant
exchange rates
+15.1%Change excl.
krill extr. sales at const.
exchange rates3.0%
Group sales
€9.8mAnnual sales
TOLL MANUFACTURING
8
42,9%
44,0%
13,1%
Europe / Afrique Americas Asia / Pacific
2014 revenueMature markets adversely impacted by the effects of the crisis and growing emerging countries
2014 annual salesby region
9
Europe / Africa: €140.3 in sales
− Sales down 7.5% at constant exchange rates
− Excluding krill extraction, the region's sales declined marginally at constantexchange rates (-1.9%)
− Economic conditions still difficult in Europe, aggravated by the Ukraine/Russiancrisis
Americas: €144.1 in sales
− Sales up 10.7% for the region at constant exchange rates
− Negative impacts in the US linked to the nutraceutical business
− Double-digit organic growth for F&B in the US and very good contribution fromVJI for 7 months of consolidation (€20.8m)
Share of emerging countries: 19.3% of Group revenue
− Annual growth of 11.2%
− Strong growth momentum in Latin America and Asia
− Promising investments (Chile, India) to strengthen our local presence (plants,application laboratories, sales offices), exploring new niches and supportingour customers' development).
2014 consolidated annual resultsDeterioration in operating profitability
10
En M€ Change
IFRS2014 2013
%
Revenue 327.3 320.8 2.0%
Gross margin 194.1 196.0 -1.0%
Gross margin ( %) 59.3% 61.1%
Current operating income 14.8 35.3 -58.0%
Current operating margin (%) 4.5% 11.0%
Recurring EBITDA 36.8 53.0 -30.6%
Recurring EBITDA margin (%) 11.2% 16.5%
Net operating income 7.7 34.5 -77.7%
Share of net income (loss ) of equity-accounted investees ( 0.9) ( 0.1)
Operating income after equity-accounted investees 6.8 34.4 -80.2%
Operating margin (%) 2.1% 10.7%
Net income attributable to the Group ( 4.1) 16.8 -124.3%
Net margin (%) -1.2% 5.2%
2014 consolidated annual resultsCurrent operating income down sharply
Negative annual organic growth
Gross margin adversely affected by exceptional impact from theprovision for inventories
Staff costs up significantly
External charges impacted by changes in Group structure
11
2014 consolidated annual results1.8 point decline in gross margin as a percentage of sales
A positive product mix effect overall despite
− a significant decline in products traditionally with highadded value (Svetol® and krill extraction)
− the very strong contribution from Vegetable JuicesInc., specialised in fruit and vegetable juices, since itsfirst-time consolidation by the Group in June 2014
A translation effect for the financial statements of Groupsubsidiaries linked to currency translations at rates lessfavourable compared to 2013, and in particular in light ofthe strong contribution of the US to Group sales in 2014
Effect of the fair value adjustment of inventories− The determination of inventory cost prices take into
account the evolution of the structure of the Group inthe inclusion of indirect production costs
− An additional €3.5m write-down as a consequence ofthe strategy to rationalise and optimise the productportfolio 12
61.1%
59.3%
- 0.6 pt- 0.4 pt
+ 0.3 pt
-1.1 pt
2013 Change instructure VJI
Translation effect Mix Provision 2014 current
Change in the gross margin as a % of sales
2014 consolidated annual resultsStaff costs rose 6% excluding changes in Group structure and translation effects
The €8.1m increase in staff costs in 2014 is linked to
− Consolidation by the Group of Vegetable Juices Inc. and Chile Botanics, representing respectively 103 and 36 employees
− The full-year effect of Group organisational measures from the end of 2012 to the end of 2014 first quarter
− Salary increases in particular in high inflation countries
− The translation (currency) effect is not significant
Europe/Africa69%
Americas23%
Asia/Pacific8%
Breakdown of Group headcount at 31/12/2014
1,718 employees in 2014 vs. 1,561 in 2013
69.1
73.1
77.3
+2.1
+1.9
+4.0
-0.1
2013 Annual increase Full-year effectof
organizationaladjustments
2014 constant Change instructure (VJI &Chile Botanics)
Translationeffect
2014 current
In €
m
Changes in Group staff costs
13
2014 annual consolidated resultsExternal charges under control at constant structure and exchange rates
The external charges increase by +4.6%
− Up €3.6m resulting mainly from theconsolidation of Vegetable Juices Inc. andChile Botanics
Excluding changes in structure andexchange rates, the increase was €0.2m(+0.2%) including primarily R&D expensesnecessary for the strategy for marketgrowth, in part offset by tighter controlsover other expenditures.
79.5
83.2+3.6 +0.2-0.2
31/12/2013 Scope effect (ChileBotanics & VJI)
Currency effect Change in OPEXexcluding change in
structure and currencyeffects
31/12/2014
In €
m
Changes in external charges
14
15
Consolidated annual resultsRationalisation and optimisation of the manufacturing base
Impairment
− of real estate assets linked to the closing of the California site of Shingle Springs (€1.8m)
− of PEKTOWIN assets in Poland (€2.1m)
− and assets of the Palafolls site in Spain (€1.5m)
2014 consolidated annual resultsInventory and WCR
In €m
Exchange rates
31/12/2013 31/12/2014
current
Pro forma
31/12/2014
constant**
pro forma
Sales*
(excluding Toll Manufacturing)302.2 332.7 333.8
Inventories 155.6 164.6 157.7
Inventory to sales ratio 51.5% 49.5% 47.2%
* Revenue with pro forma sales for VJI and Chile Botanics for 2014** Inventory at December 2013 closing rate / sales at average rate for December 2013
In €m
Exchange rates
31/12/2013 31/12/2014
current
pro forma
31/12/2014
constant**
pro forma
Sales* 320.8 342.5 343.7
WCR 176.9 181.6 174.3
WCR/sales ratio 55.1% 53.0% 50.7%
16
A significant improvement in inventory-to-sales ratio compared to 2013
− -2.0 points at current exchange rates
− -4.3 points at constant exchange rates
Ongoing efforts to rationalise inventoriesand optimise the product portfolio (focuson catalogue references)
WCR improved in relation to 2013
− + €2.6m at constant exchange rates
− Or a ratio of WCR/sales of 50.7% vs. 55.1%
Effects of measures taken to rationaliseinventories and trade receivables(Improvement in DSO)
* Revenue with pro forma sales for VJI and Chile Botanics for 2014** WCR at December 2013 closing rate / sales at average rate for December 2013
2014 consolidated annual resultsFinancial debt
17
150.7 160.3
+223.5
+10.2
-217.2
+1.7 +7.9
31/12/2013 First-timeconsolidation
New borrowings Repayment ofloans
Net increase incash
Fair valueadjustment
Translationdifferences
31/12/2014
In €
m
Changes in net financial debt
- 16.4
Financial debt of €160.3m compared to€150.7m
− In June 2014, the Group renegotiated its structuredloan facility
− Maturity extended and financing lines betteradapted to the Group structure
The change in net financial debt reflectedmainly
− The refinancing of the €156.1m debt resulting in therescheduling of debt
− New loans including the €50m bridge loan and€16.1m drawn from investment credit lines tofinance the acquisition of VJI
− Loan repayments including the €50m bridge loan and€10.2m for the repayment of VJI debt
− €7.9m in translation differences
18
Departure of Thierry LAMBERT
Appointments of:
− Paul LIPPENS as Chairman of the Board of Directors
− Hélène MARTEL-MASSIGNAC as Vice-Chairman
− Olivier RIGAUD as Director
New corporate governance
Departure of Thierry-Bertrand LAMBERT
Appointment of Waël KAIBI as Interim Chief Financial Officer for the transition
Recruitment of a CFO in progress
Change in the make-upof the Board of Directors
Change inthe Finance Department
Acquisitions of VJI and Berghausen operations
Ramping up our industrial investments in emerging markets (Chile, India)
Strengthening of our customer-driven approach with the deployment of Springlabs (application laboratories)
Capital increase and refinancing of the structured loan facility
Rationalisation and optimisation of our manufacturing base
Annual highlights
20
Annual highlights
Acquisition of Vegetable Juices Inc. in the US (June 2014)
The US specialist in the technical segment of vegetable-basedingredients
A quality customer portfolio that includes many major global food andbeverage companies
A rich offering of functional solutions built on natural vegetable-basedingredients and recognised culinary know-how
Savoury Beverages
Dairy Sweet
Did you know?
For 88% of consumers, "natural" claims impact their purchasing
decisionsVegetable-based drinks is one of the top 10 consumer packaged
goods trends in 2014-2015
Fruits and vegetables are low in calories but rich in vitamins,
minerals and fibre
Sources: Datamonitor, Mintel Group, WHO
Sourcing and QualityNatural benefits of F&V
21
THE BEST FROM
FRUITS & VEGETABLES
NATURAL GOODNESS FROM
VEGETABLES
Taste Texture Visual aspects Nutrition Health
Quality, freshness Certifications SQF, organic,
Kosher and Halal Traceability
Technical expertise
• Partnership with our SpringLab
• More than 80 years of expertise in vegetables
Synergies between two product ranges providing a unique advantage
CONFERRING A BENEFIT TO THE FINAL PRODUCT OF OUR CUSTOMERS
Annual highlights
Acquisition of Vegetable Juices Inc. in the US (June 2014
Carbonated beverages
Annual highlightsRamping up our industrial investments in emerging markets
In Chile
Completion of the plant following the acquisition of Chile Botanics,specialised in the production and sale of Quillaja extracts in December 2013
Purchase in June 2014 of the distribution business and formulas based onQuillaja Saponaria and Yucca Schidigera extracts from Berghausen, ChileBotanics' US distributor
Quillaia soap bark tree - Chile
Linares plant - Chile
Quillaia extract is a natural emulsifier or surfactant, providing analternative to synthetic additives
Alcohol free beer
Smoothies
Instant beverages
23
Annual highlightsInvestment in India
In India Construction of an extension increasing drying capacity of the Roha
site (Valentine acquired in 2012)
Commissioned in the 2015 first half
Drying facility for producing fruit powders for infant food products
Opportunities for local development and in Asia
Roha plant - India
24
Annual highlightsStrengthening of our customer-driven approach with the deployment of Springlabs
Development of our R&D expertise in connection with the ramping up of project devoted to market applications and innovations
Investments in Avignon in a pilot facility, an analysis laboratory and two application labs (Springlabs) devoted to the Food & Beverage and Personal Care businesses
7 regional laboratories worldwide(United States, United Kingdom, France, Russia, Brazil, China, Australia)
3 openings scheduled(United States, India, Chile)
Promoting customers' experience
25
Annual highlightsAdapting our financing capacity
A capital increase with preferential subscription rights for €67.2m to support external growth
− Acquisition of Vegetable Juices Inc., and to a lesser extent, Berghausen Corporationoperations for Quillaia
Refinancing of the structured loan facility (financing agreement with banking partners)
− Multiple credit lines better adapted to our growth strategy
− A €50m bridge-to-equity facility linked to the Vegetable Juices Inc. acquisition, repayable from proceeds of the capital increase
− Investment credit lines
− Multi-currency credit lines (EUR, USD)
− Lengthened debt maturity profile (Tranche A and B: final payment in 2021)
Our 2015 action plan (announced and launched in January 2015)
"Conquest, Cash & People"
A committed and experienced teamTo mobilize and rally the entire Group
Rigour and discipline in our operationsRobust actions already launched
Our priorities for 2015
27
Our 2015 action plan“Conquest, Cash & People”
Returning to growth and conquering new markets
An action plan with three priorities was rolled out in January 2015
To generate drivers necessary for lasting and profitable organic growth
Improving our WCRApplying rigorous financial
discipline
CONQUEST CASH PEOPLE
Strengthening the teamRallying and promoting the
emergence of new talent
Rigour and discipline
in all our operations
Essential measures already launched
Organisation of corporate governance
Alignment of individual performance targets
Decision steering processes based on key performance indicators (KPI’s)
"Pay for performance"
Targeted commercial re-incentivizing
PRIORITIES
ConquestFor acquiring new markets and generating profitable growth
MAIN LINES OF ACTION OBJECTIVES
COMMERCIAL ACTIONS
Targeted campaigns (regions, business unit)
Springlabs and customer visits
Digital marketing
OPERATIONAL EXCELLENCE
CRM as a unique source of information
A collaborative S&OP approach (Sales & Operations)
Demand planning and Forecasts software
PRODUCT OFFERING
Simplification, optimisation, innovation
F&V strategy, synergies, convergence (N&H-F&B)
Positioning & competitiveness
29
NEW MARKETSINNOVATION
OPTIMISATION(Purchasing/R&D/Industrial)
GOVERNANCE(Innov./Renov. committees)
PRODUCT MIXCONCEPTS
PRIORITIES MAIN LINES OF ACTION OBJECTIVES
ACCOUNTS RECEIVABLE(DSO)
Key role of Credit Management
Group Credit policy and centralisation of processes
Commitment of sales staff(training, incentive plan)
CashFor supporting operations (Business Partner) and improving our financial autonomy
INVENTORY
Reducing references (SKUs)
Demand planning and Forecasts software
Rationalisation of inventories (Top 15/Big Movers)
OPERATING EXPENSES
Budget plan for reducing expenses
Strict control over OPEX
Reinforce oversight of CAPEX
30
DISCIPLINE WCR REDUCTION
RIGOR WCR REDUCTION
CAPEX ROIOPEX REDUCTION
GOVERNANCE, ETHICSAND DISCIPLINE
PRIORITIES MAIN LINES OF ACTION OBJECTIVES
GOVERNANCE
Deployment of the "Conquest, Cash & People" plan by Management
Sharing information and team commitment
Awareness-raising for compliance with "Good Conduct" rules
PeopleFor strengthening Group momentum, rallying and promoting the emergence of talent
MANAGEMENT OF TALENT
Performance-based compensation plan
Long-term incentive plan for top management
Individual development plan(training, workload, balance between private/professional life)
MOTIVATION, LOYALTY-BUILDING, RETENTION OF TALENTREDUCING TURNOVER
SAFETY
Group Safety Programme
Focus on safety risk at all sites
Engagement of Management Committee
Members "Group Safety Ambassador"
"SAFETY" INDEXREDUCING FREQUENCY AND
SEVERITY RATES
31
Sourcing Pricing Product mix
2015 outlook
32
MAIN GROWTH DRIVERSMAIN LINES OF ACTION
FOR IMPROVING PROFITABILITY
F&B US nutraceutical business
Personal Care Emerging markets
Key Accounts Distribution channels Pooling US F&B salesforces
Quillaia Cranberry
Maca extracts Solutions/Concepts
ACTIVITIES
PRODUCTS/SERVICES
GO TO MARKET
Redeployment of staff Reducing OPEX Reducing cost prices Improving the occupancy rate of
manufacturing resources
OPERATIONAL EXCELLENCE
GROSS MARGIN
33
North America N&H business back on track
Very strong momentum for Food & Beverage
“Conquest, Cash & People” plan in place
Strong team commitment
2015 outlook
As we move into 2015 , there are a number of thingsmoving in the right direction
Indispensable drivers for a return to profitable growth
Our ambition for 5 years
2020 STRATEGIC PLAN
SAVE THE DATE: Presentation on 30 June 2015
“Think natural, think Naturex, the natural leader”
Thank you for your attention
Appendices
2014 detailed income statement1/2
37
In €m Change
IFRS2014 2013
%
Revenue 327.3 320.8 2.0%
Gross margin 194.1 196.0 -1.0%
Gross margin (%) 59.3% 61.1%
Staff costs (77.3) (69.1) 11.8%
External charges (83.2) (79.5) 4.6%
Amortisation, depreciation and impairment (22.0) (17.7) 24.1%
Current operating income 14.8 35.3 -58.0%
Current operating margin (%) 4.5% 11.0%
Recurring EBITDA 36.8 53.0 -30.6%
Recurring EBITDA margin (%) 11.2% 16.5%
Other non-current operating expenses (7.1) (0.8) -
Other non-current operating income - - -
Net operating income 7.7 34.5 -77.7%
2014 detailed income statement2/2
38
In €m Change
IFRS2014 2013
%
Net operating income 7.7 34.5 -77.7%
Share of net income (loss) of equity-accounted investees (0.9) (0.1)
Operating income after equity-accounted investees 6.8 34.4 -80.2%
Operating margin (%) 2.1% 10.7%
Net borrowing costs (8.3) (5.4) -
Other financial income and expenses (0.6) (3.1) -
Profit before tax (2.0) 25.9 -107.8%
Income tax expense (2.1) (9.0) -
Net income attributable to the Group (4.1) 16.8 -124.3%
Net margin (%) -1.2% 5.2%
2014 balance sheet
In €m
ASSETS
31/12/2014 31/12/2013
Non-current assets 343.0 266.2
Goodwill 159.4 111.8
Other intangible assets 22.7 13.6
Property, plant and equipment 146.0 128.1
Non-current financial assets 1.9 1.7
Equity accounted investees 3.9 4.3
Deferred tax assets 9.1 6.7
Current assets 283.2 249.5
Inventories 164.6 155.6
Current derivatives-
0.2
Tax receivables 4.9 1.3
Trade and other receivables 80.5 79.9
Current financial assets 2.7 -
Cash and cash equivalents 29.3 12.6
Non-current assets held for sale 1.2 -
TOTAL ASSETS 626.2 515.8
In €m
EQUITY AND LIABILITIES
31/12/2014 31/12/2013
Shareholders' equity 351.4 273.2
Non-current liabilities 190.6 106.5
Long-term financial debt 171.7 91.0
Non-current derivatives 1.5 0.7
Employee benefits 7.6 4.0
Deferred tax liabilities 9.8 10.8
Current liabilities 84.1 136.0
Current financial debt 17.8 72.2
Current derivatives 0.7 0.6
Current provisions 0.5 0.4
Current tax liabilities 1.4 4.2
Trade and other payables 63.5 58.6
Short-term bank facilities and overdrafts 0.2 0.0
TOTAL EQUITY AND LIABILITIES 626.2 515.8
39
2013 cash flow
40
€ millions - IFRS 31/12/2014 31/12/2013
Cash flow 36.4 52.6
Taxes paid (11.2) (8.1)
Change in WCR 14.9 (36.8)
Net cash provided by (used in) operating activities 40.1 7.8
Net cash provided by (used in) investment activities (85.5) (32.9)
Net cash provided by (used in) financing activities 61.8 33.9
Net change in cash and cash equivalents 16.4 8.7
Closing cash and cash equivalents 29.1 12.6
Opening cash and cash equivalents 12.6 3.5
Effect of exchange rate changes on cash (0.1) (0.4)
www.naturex.com
Carole Alexandre
Investor Relations
E-mail: [email protected]
Tel: + 33 (0)4 90 23 78 28
Anne-Catherine Bonjour
Media
Actus Finance
E-mail: [email protected]
Tel: +33 (0)1 53 67 36 93
Contacts