naturex - actusnews wire · 2014. 2. 4. · personal care continuing marketing and commercial...
TRANSCRIPT
SFAF Analysts Meeting
2 April 2014
NYSE Euronext - Paris
NATUREX 2013 consolidated results
Contents
2
NATUREX
Global leader in specialty plant-based natural ingredients
Presentation of 2013 annual results
Strategy and outlook
Calendar and contacts
Appendices
5% of sales
Devoted to
R&D
17
More than 20 sales offices
employees
worldwide
321m revenue
in 2013
€
3
NATUREX A global leader in its market
Exponential growth Organic and through acquisitions
An international Group with a strong local presence
A unique positioning covering the entire value chain
1,500
8 purchasing offices
10 R&D platforms/Front Labs
Manufacturing sites
Sourcing
in more than 50 countries
Three strategic markets (B2B)
in compliance with a
sustainable development approach
2013 2000
4
NATUREX A geographic presence both global and local
5
Presentation of
2013 annual results
2013 highlights Corporate governance reinforced for a long-term strategy
6
FINASUCRE and CARAVELLE
Two stable shareholders
A long-term investment with an industrial mission
Addition of two new directors
Anne ABRIAT, independent director
Miriam Maes
Two special committees
Audit Committee (Chairman: Olivier Lippens)
Nominating and Compensation Committee (Chairman: Paul Lippens)
SGD / FINASUCRE
21.38%
CARAVELLE 15.15%
Free Float 63.38%
Auto-Detention 0.09%
An expanded Board of Directors Capital structure
Sources: SGSS/GIS and Company – December 2013
SGD/Finasucre held 28.42% of the voting rights at 31
December
Thierry Lambert
Chairman-CEO of
Naturex
A balanced make-up
Stéphane
DUCROUX
COO America/Asia-
Pacific Regions
Hélène MARTEL
MASSIGNAC
Chairwoman-CEO of
CARAVELLE
Paul LIPPENS
Chairman of
FINASUCRE
Olivier LIPPENS
Managing Director of
FINASUCRE
Miriam MAES
Founding
Chairwoman of
FORESEE London
Anne Abriat
Senior Director
Fragrance Tech.
COTY Geneva
Executive Members
Representatives of the to long-term shareholders
External members without capital-based ties with
Naturex
2013 highlights Creation of the Operations Division
7
Pursuing Group restructuring
Launched in 2012
Nearly completed at 31 December 2013
Reinforced coordination of operating
departments
Thierry Lambert
Chairman and Chief Executive Officer
Marc ROLLER
Chief Science Officer
Thierry-Bertrand
LAMBERT
Chief Administrative and
Financial Officer
Maxime ANGELUCCI
Chief Operations Officer
Stéphane Ducroux
COO America/Asia-Pacific
Regions
Frédéric SEGUIN
Chief Industrial Officer
Serge SABRIER
Chief Procurement
Regional Managers (More than 20 sales
offices
worldwide)
Management Committee
8
NATUREX DBS (US)
Very strong sales growth post-integration
2013 highlights External growth
Successful integration of DBS, and insourcing of commercial
distribution in Europe previously handled by a distributor
Strong involvement by existing management, developer of the DBS
project and stakeholder in the capital
Strong revenue growth (+50% in the year)
Launch of Flowens®, a cranberry extract, in the prevention of benign
prostatic hyperplasia (BPH)
Accretive acquisition of the leader in cranberry extracts
Positioning as a specialist in high quality plants and fruit
extracts originating from North America by replicating the
cranberry model
Cranberry bog
CHILE Botanics (Chile)
A very promising ingredient
Majority stake (51%) in a young Chilean company specialized in the
production and sale of Quillaja extracts. Existing management retains
100% of its initial interests
€2.3 million investment destined to develop the manufacturing base
Access to a specific global resource
Synergies with NATUREX (commercial network, scientific
expertise, market application know-how) making it possible to
leverage market potential and rapidly generate growth
Many potential channels:
Food industry: foaming agent, (smoothies, alcohol free
beers…), emulsifier for colours
Cosmetics: natural surfactants (balms and creams…)
Cranberry bog Quillaja Saponaria
9
2013 highlights Business development
The integration of VALENTINE (India) acquired in April 2012 went
well
Building from this small structure, NATUREX invested in its industrial
base to develop both locally in the Indian market and the Asia region
To support customers in this region within the framework of
new products,
and notably the development of the Baby Food market
Installation of drying facilities at the Roha Plant in India
Investment of €6m over three years
Reinforcing our industrial positioning in Asia
Long-term growth potential in both the local market and at
regional level
Increase our know-how in a country with rich sourcing
potential and opportunities
Manufacturing site of Roha
(India) Major expansion of the VALENTINE site
Up until 2012, NATUREX had sole commercial base in the US
located in New Jersey
Opening at the end of 2012 of a first Commercial office
in Los Angeles (California)
In 2012, this was expanded by the opening of three
sales offices specialized in Food & Beverage: Chicago,
Dallas, Atlanta
No additional cost
Increased proximity to customers
Americanization of the sales force for improved Food &
Beverage penetration
Three new sales offices in the US For improved penetration of the food industry
market
Three new sales offices in the US Drum-Dryer – Roha Plant (India)
10
Joint-Venture with Aker BioMarine A collaborative venture for krill extraction
AKER BioMarine is a long-standing partner of NATUREX
AKER BioMarine, a Norwegian-based world leader in krill
harvesting
Omega-3 rich krill extraction assured by NATUREX at the
Valencia plant (Spain) as part of the Toll Manufacturing
activity
Creation of a 50-50 joint venture: AKBM Manufacturing
Development of additional production capacity in the US
(Houston)
The Houston industrial site will supplement operations of the Valencia
site
2013 highlights Industrial investments
Pursuing the partnership with AKER BioMarine for a long-term
collaboration
This participation is integrated in NATUREX's accounts under
operating results from equity-accounted investees
Sales by the JV will not be taken into account in NATUREX's
consolidated sales
Naturex Industrial SL (Espagne) Securing the manufacturing base and increase
capacity
Finalisation of agreements concluded with Natraceutical in 2009
when the Ingredients Division was acquired:
Acquisition of Natraceutical Industrial SL (renamed Naturex
Industrial SL) whose primary property assets consist of land
and buildings at the Valencia site
Transaction of €8.5m payable 30 June 2017
This transaction secures the industrial base for the long-term
Site of significant size (land of 103,000 m² and more than
10 000 m² for buildings) with extension possibilities
Important extraction capacity and high technical
potential
This site is destined to become one of the Group's main
nutraceutical and cosmetics extraction site
Valencia Plant Euphasia Superba: Krill
2013 key figures An excellent growth performance
11
Financial data at 31 December 2013 versus 31 December 2012
Revenue
€320.8m
+9.7% constant exchange rates
Recurring EBITDA
€53.0m
16.5% of sales
Net income
€16.8m
5.2% of sales
Current operating
income (EBIT)
€35.3m
11.0% of sales
2013 business highlights The Group maintains positive momentum
Revenue mix by market: Nutrition & Health driving growth
12
Food & Beverage
Growth limited by weak economic environment in
Europe
Positive shift of the product mix towards to more
differentiated high value-added products
Nutrition & Health Good growth from positioning in the US market and
strong contribution by Svetol® in H1 2013, though also
strong gains in Europe, Asia and Latin America
Significant success by the NatLife™ range
Personal Care
Continuing marketing and commercial efforts
Development of purified products for major names of
the cosmetics market
Toll Manufacturing & Misc.
Excellent level for sales in 2013, particularly in H1
The JV with Aker BioMarine will integrate in 2014 a
portion of production recorded in 2013 for this activity
2013 vs. 2012
Constant currencies
F&B N&H Personal
Care
Toll-
Manufacturing
and misc.
Total
184.1 112.9 5.8 18.0 320.8
+0.4% +24.8% +24.0% +29.9% +9.7% Sale
s in €
m
57.4%
35.2%
1.8% 5.6%
Food & Beverage Nutrition & Health
Personal Care Toll-Manufacturing and miscellaneous
13
Revenue mix by region: Growth in all geographic regions
2013 business highlights The Group maintains positive momentum
Europe/
Africa
Americas Asia/Pacific Total
150.6 130.3 39.9 320.8
+6.9% +11.4% +14.7% +9.7%
Sale
s in €
m
47.0%
40.6%
12.4%
Europe / Africa Americas Asia / Pacific
2013 vs. 2012
Constant currencies
Europe/Africa
Food & Beverage registered limited growth in 2013,
particularly in Western Europe within a weak economic
climate
Important contribution by Toll Manufacturing in H1 2013
Americas
Strong contribution from the US (particularly from the
nutraceutical market)
Growth potential in Latin America confirmed despite
significant depreciation of selected currencies (in particular
the Brazilian Real)
Asia/Pacific
Very strong growth in Asia, +35% (now accounting for 53.5% of sales for Asia/Pacific region)
Gradual drop in traditional activity of trading in Australia
offset by development of the NATUREX range in Nutrition &
Health
Emerging countries
17.7% of Group revenue
Good contributions despite very unfavourable currency effect
Results – FY 2013 € millions
IFRS
FY 2013 FY 2012 Chang
e (%)
Revenue 320.8 299.8 +7.0%
Gross margin 196.0 175.5 +11.6%
Gross margin (%) 61.1% 58.5% -
Staff costs (69.1) (58.4) +18.5%
External charges (79.5) (71.0) +12.0%
Recurring EBITDA 53.0 51.1 +3.8%
Recurring EBITDA margin (%) 16.5% 17.0%
Amortisation and depreciation (17.7) (15.2) +17.0%
Current operating income (EBIT) 35.3 35.9 -1.8%
Current operating margin (%) 11.0% 12.0% -
Other non-current operating expenses (0.8) (4.4) -
Other non-current operating income - 6.1 -
Net operating income 34.5 37.6 -8.4%
Share of net income of equity-accounted
investees (0.1) - -
Operating income after equity-accounted
investees 34.4 37.6 -8.6%
Operating margin (%) 10.7% 12.5% -
Net borrowing costs (5.4) (5.1) -
Other financial income and expenses (3.1) (0.9) -
Net earnings before income tax 25.9 31.7 -18.3%
Income tax expense (9.0) (8.7) -
Net income attributable to the Group 16.8 22.9 -26.7%
Net margin (%) 5.2% 7.6% -
14
Good growth despite unfavourable
currency effect (-2.7%)
Improvement in product mix for all ranges
Scope effect (Valentine, DBS), restructuring
impact (1.2% of sales), increase in production
labour costs and external charges linked to
increased share of toll manufacturing products
Increase in laboratory costs and other factory
overhead costs, rental costs (Avignon site
extension), increased logistics costs, etc.
Good growth for recurring EBITDA despite
very unfavourable currency effect
Current operating margin in line with results of
last three quarters
Non-current operating expenses (restructuring
costs in Poland and costs related to acquisition
projects) significantly declined in 2013
Excluding €6.1 million from insurance
payments, net operating income would
have risen 9.5% in 2013
Translation differences correspond mainly to
impact of foreign exchange losses on intra-
group balances (-€4.3m) plus non-Group
foreign exchange gains (€1.2m).
1
1
2
2
3
3 4
4
5
5
6
6 8
7
7
8
9
9
15
Restructuring A necessary step
Reorganization of departments/divisions to
improve coordination
Creation of an operations division
Appointment of a Managing Director for India
Strengthening departments/divisions to optimize
operational performance
Creation of positions for Regional Industrial
Managers, Lead buyers
Structuring of Business Units
Creation of new departments to expand
"business" expertise and improve risk
management
Agronomy and channels
Human Resources, Reporting
Three lines of action Selected examples
A necessary step to pursue
our development
Strong development in recent years
Rapid growth in business after transformative
acquisitions at the end of 2009 (x2 size increase)
Four new acquisitions including three with industrial
bases to be integrated
A structure that had evolved very little
Lack of middle management and structure for
coordination between Divisions
A supply chain to be improved
The absence of suitable structure reduced our
capacity to take advantage of growth
opportunities (organic and external)
13%
19%
27%
19%
10%
6%
4%
2%
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
16
Restructuring Ramping up operations started in H2 2012
CREATION OF 49 POSITIONS RELATING TO THE RESTRUCTURING 3 POSITIONS TO COME
Launch in
H2 2012
Peak in creation of
positions in Q1 2013
End of 2013,
restructuring 94%
completed
End of programme
linked to
restructuring with
recruitment of 3
positions
Restructuring Workforce data summary/staff costs
17
5
38
51
2012 2013 2014
Positions created linked to the
restructuring
0.5
4.2
5.7
2012 2013 2014
Corresponding costs
in €m
Cumulative number on full-year basis
Average number of equivalent full-time staff
17
49 52
69%
31%
External recruitments
Internal promotions
2013 annual results A balance sheet in line with revenue growth
18
€ millions
IFRS
ASSETS
31/12/2013 31/12/2012
Non-current assets 266.2 251.3
Goodwill 111.8 114.9
Other intangible assets 13.6 12.2
Property, plant and equipment 128.1 117.0
Financial assets 1.7 4.9
Equity accounted investees 4.3 -
Non-current derivatives - -
Deferred tax assets 6.7 2.3
Current assets 249.5 220.4
Inventories 155.6 137.2
Current derivatives 0.2 0.3
Tax receivables 1.3 1.2
Trade and other receivables 79.9 71.1
Cash and cash equivalents 12.6 10.6
TOTAL ASSETS 515.8 471.6
€ millions
IFRS
EQUITY AND LIABILITIES
31/12/2013 31/12/2012
Shareholders' equity 273.2 258.6
Non-current liabilities 106.5 86.1
Long-term financial debt 91.0 69.3
Non-current derivatives 0.7 1.6
Employee benefits 4.0 4.9
Deferred tax liabilities 10.8 10.3
Current liabilities 136.1 126.9
Current financial debt 72.2 51.0
Current derivatives 0.6 1.0
Current provisions 0.4 0.4
Current tax liabilities 4.2 2.8
Trade and other payables 58.6 64.5
Bank credit facilities - 7.2
TOTAL SHAREHOLDERS'
EQUITY AND LIABILITIES 515.8 471.6
2013 annual results Financial debt
19
In €m
31/12/2013 31/12/2012
Shareholders' equity 273.2 258.6
Net financial debt 150.7 116.9
Recurring EBITDA 53.0 51.1
Gearing (Net financial debt / Equity)
55.2% 45.2%
Leverage (Net financial debt / Recurring EBITDA)
2.8 2.3
Breakdown of net financial debt in
foreign currency
Breakdown of financial position
69.4%
22.9%
6.4%
0.3%
Euros Dollars Swiss Francs Others The increase in net financial debt reflects mainly:
the OCEANE convertible bond issue for a nominal amount of €18 million with
€16.4 million recorded for the debt component
debt payable to Natraceutical for the acquisition of NATUREX Industrial SL
for €8.6 million
obligations for put options of NATUREX written on non-controlling interests, DBS
and CHILE BOTANICS, for respectively €1.9 million and €2.1 million
2013 Capital expenditures
20
2013: A year of important investments
€28m in capital expenditures
(excl. JV AKER) linked notably to :
The acquisition of property assets
— assets of Valencia (Spain) (€8.5m payable in June 2017)
— land of the site in Chile for the construction of a plant (€0.7m)
Installations for existing manufacturing sites
— fixtures and installations following the extension of the
Avignon headquarters including the construction of a
wastewater treatment facility (€4.6m)
— installations in companies acquired: a juice and purée
production line at the Pektowin site in Poland (€1.4m)
— extension of capacity for the Valencia site (€1.3m)
Implementation of the development strategy
— industrial projects: Drying facility of Roha in India (€6m 3
years-1st tranche of €0.6m)
— R&D and laboratories (€1.7m) of which start up
Pilot Hall Avignon
Valencia Plant (Spain)
Wastewater treatment facility – Avignon site (Avignon)
Drum Dryer – Roha plant (India)
21
Strategy and outlook
Strategy and outlook Combining organic and external growth
22
Dual drivers that have always underpinned
NATUREX's business model
Targeted and complementary
external growth
A model with a 13 year track record
Sustainable and lasting
organic growth
Organic growth is always nourished and accelerated by acquisitions
Acquisitions completed are energized by NATUREX's network
Always grow faster than the market Contribute to the structuring of the sector
Strategy and outlook Sustainable and lasting organic growth
23
Always grow faster than the market when up to speed
Sustainable and lasting
organic growth
Growth outpacing the market for years
Significant size giving us a position as a partner of choice for large industrial
group's
An image of multi-specialist in the market enabling us to promote new
opportunities for our customers
Technical and scientific
know-how
New production techniques (extraction,
drying, …)
Clinical and application know-how
Search for complementarities
Offering potential for generating value by
the NATUREX network
Examples: Cranberry, Quillaja
Strengthening our position as a
specialist in botanical extracts
Through sourcing for specific raw
materials
Cf. Nagoya Protocol
Access to raw materials
For products For markets
Strategy and outlook A strategy of targeted acquisitions
In which NATUREX has limited or no
presence
And offering real potential
The sector is still rich in opportunities
NATUREX intends to pursue its strategy of targeted external growth, focusing on three areas:
24
Strategy and outlook Trends for 2014
25
A new year of growth in 2014
60
65
70
75
80
85
Q1 Q2 Q3 Q4
Mil
liers
2012 2013
Revenue by quarter in €m
2013 vs. 2012
Effective growth slightly less sharp
Transfer outside the Group structure of a portion of Toll
Manufacturing sales performed for AKER BioMarine
Quarterly sales patterns will significantly differ from 2013
Svetol® sales that registered a peak in H1 2013 will be significantly
lower in Q1 2014
Toll Manufacturing activity of the Valencia site (Spain) very
sustained over all of H1 2013 will be strong as of April 2014
Gradual ramping up of significant new projects throughout the year
26
Calendar and contacts
Financial communications calendar
27
Financial information Dates
Q1 2014 revenue 28 April 2014
Q1 2014 results 26 May 2014
2014 H1 sales 25 July 2014
2014 first-half results 29 August 2014
2014 third-quarter sales 4 November 2014
2014 third-quarter results 28 November 2014
Revenue – FY 2014 3 February 2015
Results – FY 2014 31 March 2015
Press releases are issued at the end of the trading day.
Contacts
28
www.naturex.com
Thierry Lambert
Chairman and CEO E-mail: [email protected]
Tel: + 33 (0)4 90 23 96 89
Thierry-Bertrand Lambert
CFO
E-mail: [email protected]
Tel: + 33 (0)4 90 23 96 89
Carole Alexandre
Investor Relations
E-mail: [email protected]
Tel: + 33 (0)4 90 23 78 28
Anne-Catherine Bonjour
Press Relations Actus Finance
E-mail: [email protected]
Tel: +33 (0)1 53 67 36 93
29
Appendices
30
Restructuring Breakdown of cost by Division/Department
% cost
breakdown Restructuring by Division/Department
19% General Management
Creation of positions: Group COO, Deputy COO, Managing Director DBS and Managing Director India
22% Industrial
Creation of positions for Regional Managers, Engineering New Works department, organisation of the HSE department
5% Scientific
Creation of R&D manager, creation of the R&D Colours department (US)
9% Purchasing
Organization of "lead buyers" responsible for ranges, creation of the agronomy and channels support department
22% Business Development & Marketing
Management of digital marketing projects, restructuring of Business Units
8%
Coordination of IT developments
Creation of a Contracting Authority/Contracting Assistance structure to coordinate IT developments at the level of each
Division
7%
Human Resources
Creation of an HR department tasked with training-recruitment, internal mobility, coordinating with Group and local
representatives in the main subsidiaries
8% Creation of two new departments
"Reporting " and "Tax"
100% Or a cost in 2013 of €4.2m (€5.7m on full-year basis)
2013 cash flow highlights
31
€m - IFRS 31/12/2013 31/12/2012
Cash flow 52.6 51.3
Cash payments ( 8.1) ( 5.8)
Change in WCR ( 36.8) ( 30.9)
Net cash provided by operating activities 7.8 14.6
Cash from (used in) investing activities ( 32.9) ( 56.6)
Net cash provided by financing activities 33.9 8.5
Change in cash 8.7 ( 33.6)
Opening cash 12.6 3.5
Closing cash 3.5 36.7
Effect of foreign exchange changes on cash holdings ( 0.4) ( 0.3)
Number of shares: 7,845,705 (February 2014)
NYSE Euronext Paris – SegmentB since October 1996
Code ISIN FR0000054694
Market capitalisation: €510m (At 28 March 2014)
Fiscal year: 1 January to 31 December
AGM: June
Liquidity agreement: EXANE BNP PARIBAS
Analysts: BERENBERG Capital Markets,
CM-CIC Securities, DAVY RESEARCH, EXANE
BNP PARIBAS, ID Midcaps, KEPLER
CHEUVREUX, NATIXIS, PORTZAMPARC,
SOCIETE GENERALE
SYMBOL: NRX - REUTERS: NATU.PA
BLOOMBERG: NRX:FP - DR SYMBOL: NTUXY
Indexes: CAC® PME, AC Small, Gaïa Index
Eligible for the "long only" Deferred Settlement Service (SRD) and French equity
plans (PEA and PEA-PME)
American Depositary Receipt (ADR) program: BNY Mellon
Share price trends January 2011- March 2014
The NATUREX share
32
33
Entrepreneurship for a better world
Supporting education, medicine and basic necessities for local populations in countries where we source our plants,
herbs and spices
www.fondation.naturex.com
Contact Antoine Dauby -Secretary of the NATUREX Foundation Jacques Dikansky
Site d’Agroparc - BP1218 - Avignon Cedex 08
www.fondation.naturex.com
Sustainable development
and Corporate Social Responsibility
www.naturex.com