Investors Presentation 5 February 2020 · In the Netherlands since 1 Oct 2019 Slovakia, Hungary and...
Transcript of Investors Presentation 5 February 2020 · In the Netherlands since 1 Oct 2019 Slovakia, Hungary and...
Investors Presentation5 February 2020
Dr. Stephan Meeder, CFO
2CropEnergies AG, 5 February 2020
World greenhouse gas emissions
Source: EEA
3CropEnergies AG, 5 February 2020
Ethanol – important element to decarbonize the transport sector
Domestic
renewable raw
materials
High-quality fuel
which can be
used in petrol
engines
Climate-friendly fuel
produced sustainably
4CropEnergies AG, 5 February 2020
Ethanol: 70% less GHG emissions comparedto fossil fuels*
The GHG values of all elements in the value-added chain are added up
The emissions from ethanol when used in combustion engines is zero
European ethanol reduces annual GHG emissions by >10 Mt**
Cultivation Grain
Transport Grain
Ethanol Production
Ethanol Transport
CO2
Liquefaction
*83,8 gCO2eq/MJ **Own calculations
5CropEnergies AG, 5 February 2020
Reduction by Reduction by
Super (E5)
Reference
Super E10
Measurement:
particulate matter
Super E10
Measurement: NOx
Renewable ethanol – advantages
Ethanol…
As direct blend to petrol (e.g. E5, E10, E85)
As component in ETBE (octane booster)
E10 reduces CO2, NOx and particulate matter
WLTP* benchmark, label in tank flap of all new cars
Potential savings (EU): >20 Mt CO2eq (8 million less cars on the road)
Potential for 20% ethanol blending (Super E20)
Potential savings: >40 Mt CO2eq (16 million less cars on the road)
Successful racing results (Porsche/Nürburgring)
*Worldwide harmonized light-duty vehicle test
Blending
Ethanol
Petrol
E5 E10 E20 E85
Source: bdbe
6CropEnergies AG, 5 February 2020
Our co-products: Food and Fuel
Raw materials are utilized completely
Concept of co-production
Food-grade liquefied CO2
For food and beverages
industries
Vital Wheat Gluten
Valuable protein product for
food and animal feed
industry
ProtiGrain® – DDGS
High protein animal feed
from dried stillage
ProtiWanze® – CDS
Liquid protein animal feed
from stillage
7CropEnergies AG, 5 February 2020
The ethanol markets
World production
2019e: 128 million m3 (+1%)
Fuel applications: 109 million m³ (+1%)
2020e: 129 million m3 (+1%)
Fuel applications: 110 million m³ (+1%)
EU production
2019e: 7.6 million m3 (-3%)
Fuel applications: 5.2 million m³ (-4%)
2020e: 7.7 million m3 (+1%)
Fuel applications: 5.3 million m³ (+2%)
Source: F.O.Licht Source: F.O.Licht
0
2
4
6
8
10
2014 2015 2016 2017 2018 2019e 2020e
(in M
io.
m3)
Ethanol production in the EU [M m3]
fuel non-fuel
8CropEnergies AG, 5 February 2020
Increasing blending obligations in EU countries in 2020
6% GHG-target 2020 requires more non-fossil alternatives
RED II: 1G cap max 7% but not more than 2020 + 1%
EU market 2020e [Mm³]
Production: 5.3 +2% (add. 2.4 non-fuel)
Consumption: 5.9 +6% (add. 2.6 non-fuel)
E10 available in more European countries
In the Netherlands since 1 Oct 2019
Slovakia, Hungary and Denmark as of 1 Jan 2020
2020 plans: Austria, Lithuania, Latvia
Market – E10 availability increases
EU sales fuel ethanol [Mm3]
2.3 2.5 2.7
1.5 1.5 1.50.9 0.9 0.90.8 0.7 0.8
0
2
4
6
8
2018 2019e 2020e
Other EU Germany
France UK
E10 availability across Europe
Source: F.O. Licht
Source: ePURE
9CropEnergies AG, 5 February 2020
162 150 95
197 197133
311 280
175
196186
140
866813
543
375
0
200
400
600
800
1,000
2018 2020 2030 2040
* in particular: buildings, agriculture, w aste
TransportOther Non-ETS*EnergyIndustry
DE: National climate protection law and emission trading system adopted
National Climate protection law
Binding statutory emission limits for all sectors
Transport: reduction from 150 Mt CO2eq in 2020 to 95 Mt CO2eq in 2030
National emission trading system
Applicable on fossil fuels in transport and heating
2021 to 2025: ”fixed price period“ – political agreement to start with 25 €/t
CO2 gradual increase to 55 € until 2025
From 2026 on: auctioning of CO2 certificates
Call for additional measures to achieve goals:
Increase GHG target from 6% (2020) to 16% (2030)
Reform of energy tax from volume (litre)-base into CO2-pricing
GHG emissions in Germany
– reality and targets
[Mt CO2eq]
0.7 0.7
0.7
2.8
2.3
2.1
3.43.0
2.7
0.3
0
1
2
3
4
combustion upstream
GHG emissions from fuels[kg CO2eq/liter]
10CropEnergies AG, 5 February 2020
Profitability drivers
Higher ethanol and lower raw material prices in 1st - 3rd quarter
Ethanol*: € 605 (475) /m3
Grain**: € 178 (187) /t
Raw materials prices on moderate level
World grain harvest*** 2019/20 at 2,162 Mt (+1%)
World stocks lower at 594 Mt (-4%)
EU harvest 318 Mt (+9%) above consumption of 290 Mt
CE benefits from “natural hedge”
Strong price correlation between grains and proteins
*Ethanol T2 FOB Rdam ** Wheat (Euronext Paris), next date of expiry *** All varieties, except rice
100
200
300
400
500
600
700
[€/t o
r €/m
3]
Euronext Paris wheat No. 2
Net raw material costs
Fuel EtOH T2 FOB Rdm. (1M)
Gross profit for wheat-EtOH
11CropEnergies AG, 5 February 2020
European ethanol prices [€/m3]*
*1M future ethanol T2 FOB Rotterdam
12CropEnergies AG, 5 February 2020
EU climate goals – RED II
EU Commission aims at climate-neutral Europe in 2050
2030 GHG-target: 40% reduction (compared to 1990) –
increase to 55% under discussion
RED II published on 18 Dec. 2018
National implementation until mid 2021
RED II: more renewables to reduce CO2
footprint of energy usage
At least 32% renewable energiesin 2030 (2017: 17%)
Transport: at least 14% renewablesVolume cap for biofuels from arable crops
Promotion of biofules from waste and residues
Greenhouse gas emissions in the EU
[Mt CO2eq]
13CropEnergies AG, 5 February 2020
RED-II: Overall target of 14% in 2030 –the “toolbox“
Up to 7%
Local, sustainable
Proteins
Commitment to 1G as reliable basis for low-emission transport sector necessary
Arable crops
Min. 0.2% in 2022
Min. 1.0 % in 2025
At least 3.5% in 2030
Strong market potential
Very capital intense
Investment security and investment incentives decisive
Annex IX-A
Max. 1.7%, but still x2 versus today
UCO imports: 10x within last 10 years
Compatibility with law on waste needs to be ensured
Annex IX-B
Important component in the future
But: discretionarymultiplier (x4) does not save a single gram of CO2
Extension only reasonable if additional electricity will be produced
Electricity
14CropEnergies AG, 5 February 2020
Strategic outlook
Demand: chance for new impulses
GHG reduction targets and renewable energy
CO2 pricing can complement GHG sector targets for transport
Strategy
Short-term: optimise production sites, protein co-products
Medium-term: R&D process innovation, alternative feedstocks
Long-term: R&D biochemicals, expansion of product portfolio /- growth
Ethanol
Gluten
Neutral alcohol
Ethanol chemistry
Liquefied CO2
Fuel ethanol
ProtiGrain®
Animal feed
15CropEnergies AG, 5 February 2020
Wheat proteins as meat alternative
BeneoPro W-Tex as meat alternative
Investment in the amount of € 4.3 million by sister company Beneo
Start of operation: 1st March 2019
Replacement of meat in products such as burgers, nuggets and bolognese
Facility is operated by BioWanze
Sales are concluded by Beneo
Trend: meat replacement
Growing demand for plant-based proteins worldwide
Average annual growth rate of 5.5%* expected in Europe in the next 5 years
*Global Data Market Analyzer
16CropEnergies AG, 5 February 2020
Source: ePURE
Biorefinery of the future
17CropEnergies AG, 5 February 2020
Our locations
Wanze, Belgium
BioWanze SA
Loon-Plage, France
Ryssen Alcools SAS
Tank storages
Rotterdam
Wilton, UK
Ensus UK Ltd
Trading office
São Paulo, Brazil
Ryssen Chile SpA,
Santiago de Chile, Chile
Zeitz, Germany
CropEnergies Bioethanol GmbH
Tank storages
Amsterdam
18CropEnergies AG, 5 February 2020
The production sites of CropEnergies AG
Capacity: more than 1.3 million m³ ethanol and more than 1 million tonnes food and animal feed per year
Annual capacity:
400,000 m³ ethanol
thereof up to 60,000 m3 neutral alcohol
>300,000 t ProtiGrain® (DDGS)
100,000 t liquefied CO2
Raw materials: grain and sugar syrups
Annual capacity:
300,000 m³ ethanol
60,000 t wheat gluten
>400,000 t ProtiWanze®
Raw materials: wheat and sugar syrups
Annual capacity:
>100,000 m³ ethanol for fuel applications
90,000 m³ ethanol for traditional and
technical applications
Raw material: raw alcohol
Annual capacity:
400,000 m³ ethanol
350,000 t DDGS
Raw material: grain
Wilton – UK
Ensus UK Ltd.Wanze – Belgium
BioWanze SAZeitz – Germany
CropEnergies Bioethanol GmbH
CropEnergies AGMannheim - Germany
ProtiGrain® Liquefied carbon
dioxideProtiWanze®Ethanol for traditional &
technical applicationsEthanol as FuelGluten
Loon-Plage – France
Ryssen Alcools SAS
19CropEnergies AG, 5 February 2020
Financials 2019/20 & Outlook
20CropEnergies AG, 5 February 2020
Outlook 2019/20
Insider information publication according to section 17 MAR of 16 December 2019:
Revenues are now expected to reach around € 900 million
Operating profit is expected to be approximately € 100 million
This is equivalent to an EBITDA of around € 145 million
21CropEnergies AG, 5 February 2020
Highlights 9M 2019/20
*Incl. adjustments from IFRS 16
729 (771) ,000 m³
667.6 (596.1) million €
101.9 (48.5) million €
70.3 (19.1) million €
50.2 (12.9) million €
89.7 (26.9*) million €
- 6%
+ 12%
+ 53 million €
+ 51 million €
+ 37 million €
+ 63 million €
Ethanol production
Revenues
EBITDA
Operating profit
Net earnings
Net financial assets (vs. 28 Feb 2019)
22CropEnergies AG, 5 February 2020
Revenues
Production decrease by 6%
Production capacity utilisation adjusted to suit market conditions and to carry
out regular maintenance activities
Increase in revenues due to significantly higher sales prices for ethanol
Average ethanol price**: € 605/m3 (€ 475/m3 in previous year)
(in € million) 9M 19/20 9M 18/19 Δ
Revenues 667.6 596.1 + 12%
EBITDA* 101.9 48.5 > + 100%
Margin 15.3% 8.1% -
Depreciation* -31.6 -29.3 - 8%
Operating profit 70.3 19.1 > + 100%
78%21%
1%
Revenues 9M 2019/20
Ethanol Food and animal feed products Other revenues
*Without restructuring costs and special items **Ethanol FOB Rotterdam
679596
668
847771 729
0
200
400
600
800
1,000
9M17/18
9M18/19
9M19/20
Revenues / Production[M€ / 1,000 m3]
23CropEnergies AG, 5 February 2020
EBITDA
EBITDA benefits from first-time adoption of IFRS 16
EBITDA doubled despite higher raw material prices
(in € million) 9M 19/20 9M 18/19 Δ
Revenues 667.6 596.1 + 12%
Overall performance 651.2 601.4 + 8%
Cost of materials* -481.2 -481.1 - 0%
Spread (gross) 170.0 120.3 + 41%
in % of overall performance 26.1% 20.0% -
Further operating expenses/income* -68.1 -71.8 + 5%
EBITDA* 101.9 48.5 > + 100%
88
48
102
0
30
60
90
120
9M17/18
9M18/19
9M19/20
EBITDA [M€]
158
120
170
24%20%
26%
0
50
100
150
200
9M17/18
9M18/19
9M19/20
Spread (gross) / in % of overall performance [M€]
*Without restructuring costs and special items
24CropEnergies AG, 5 February 2020
Operating profit
Slightly higher depreciation from first-time adoption of IFRS 16
Increase in operating margin from 3.2% to 10.5% yoy
59
19
70
0
20
40
60
80
9M17/18
9M18/19
9M19/20
Operating profit [M€]
(in € million) 9M 19/20 9M 18/19 Δ
Revenues 667.6 596.1 + 12%
EBITDA* 101.9 48.5 > + 100%
Margin 15.3% 8.1% -
Depreciation* -31.6 -29.3 - 8%
Operating profit 70.3 19.1 > + 100%
Margin 10.5% 3.2% -
*Without restructuring costs and special items
25CropEnergies AG, 5 February 2020
(in € million) 9M 19/20 9M 18/19 Δ
Revenues 667.6 596.1 + 12%
EBITDA* 101.9 48.5 > + 100%
Operating profit 70.3 19.1 > + 100%
Restructuring costs / special items 0.0 10.1 < - 100%
At equity result 0.1 0.1 + 2%
Income from operations 70.5 29.4 > + 100%
Financial result -2.6 -1.0 < - 100%
Earnings before income taxes 67.9 28.4 > + 100%
Taxes on income -17.6 -15.5 - 14%
Net earnings for the period 50.2 12.9 > + 100%
Earnings per share (in €) 0.58 0.15 > + 100%
Net earnings for the period
Financial result increases due to unrealized currency effects
Tax rate drops to 26 (55)%
42
13
50
0
15
30
45
60
9M17/18
9M18/19
9M19/20
Net earnings for the period [M€]
*Without restructuring costs and special items
26CropEnergies AG, 5 February 2020
Higher investments in PPE to enhance production plants
Significant improvement of net financial assets
Cash flow
43
81
-8
-20-30
0
30
60
90
9M18/19
9M19/20
Cash flow (+) / Investments* (-) [M€]
*excl. financial investments
**Net financial assets as of 30/11/2019: excl. adjustments from IFRS 16
(in € million) 9M 19/20 9M 18/19 Δ
Cash flow 80.7 42.9 + 88%
Change in net working capital 15.3 7.1 > + 100%
Net cash flow from operating activities 96.0 49.9 + 92%
Investments in property, plant et al. -19.7 -8.5 < - 100%
Payments into current financial investments -14.9 0.0 -
Cash flow from investing activities -34.6 -8.5 < - 100%
Cash flow from financing activities -52.2 -64.9 + 20%
Exchange rate changes et al. 1.5 0.0 -
Increase/Decrease in cash and cash equivalents 10.7 -23.5 -+ 0.0
30/11/2019 30/11/2018 Δ
Net financial assets** 89.7 56.5 + 59%+ 0.0
27CropEnergies AG, 5 February 2020
Balance sheet structure and financial ratios
Strong cash base
Increase in equity reflects positive earnings situation
432
442
481
400
420
440
460
480
500
30/11/17 30/11/18 30/11/19
Shareholders' equity [M€]
*Net financial assets as of 30/11/2019: excl. adjustments from IFRS 16
(in € million) 30/11/2019 30/11/2018 Δ
Assets
Non-current assets 382.4 385.8 - 1%
Current assets 274.6 207.2 + 33%
Total assets 657.0 593.1 + 11%
Liabilities
Shareholders' equity 480.6 442.3 + 9%
Non-current liabilities 57.8 49.7 + 16%
Current liabilities 118.6 101.1 + 17%
Total liabilities and equity 657.0 593.1 + 11%
Net financial assets* 89.7 56.5 + 59%
Equity ratio 73% 75% -
28CropEnergies AG, 5 February 2020
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.
Investor Relations
Heike Baumbach
Phone: +49 (621) 71 41 90-30
Contact
CropEnergies AG
Maximilianstraße 10
68165 Mannheim
www.cropenergies.com
Stock Information
ISIN: DE000A0LAUP1
Symbol: CE2
Bloomberg / Reuters: CE2 GY / CE2G.DE
Transparency standard: Prime Standard
Public Relations / Marketing
Nadine Dejung-Custance
Phone: +49 (621) 71 41 90-65
Financial Calendar
13 May 2020: Annual report and press and analysts’ conference financial year 2019/20
8 July 2020: Statement for the 1st quarter of 2020/21
14 July 2020: Annual General Meeting 2020
7 October 2020: Report for the 1st half of 2020/21
13 January 2021: Statement for the 1st-3rd quarter of 2020/21