NATUREX Annual Results 2011 SFAF Presentation April 2 nd , 2012 - PowerPoint PPT Presentation

NATUREX Annual Results 2011 SFAF Presentation April 2 nd , 2012

Contents  Strong fundamentals, creating value  Annual Results 2011: An excellent year of growth  A new round of acquisitions and substantial upside to expect  Favourable market trends with positive outlook  NATUREX and the Stock Market  Agenda and contacts  Appendix 2

Strong fundamentals, creating value 3

NATUREX at a glance  World leader in specialty plant-based natural ingredients  Three markets: Food & Beverage, Nutrition & Health, Personal Care  A wide product range with over 1,500 referenced products  Created in 1992 in Avignon (Head Office) and listed on NYSE Euronext Paris since 1996  More than 1,200 employees worldwide  Of which 12% within the Science Department  A worldwide geographic footprint in 22 countries*  21 sales offices for a close relationship with more than 2,000 customers  15 flexible and efficient industrial facilities for customised solutions  A high sourcing capacity all over the World * Information as at March 26th, 2012 4

A global offer into three complementary markets Natural ingredients with aromatic, preservative, healthy, texturing and sweetening properties Plant extracts and innovative active ingredients for nutraceutical applications and pharmaceuticals Innovative active natural ingredients, plant extracts and functional raw material 5

A balanced worldwide presence in both developed and emerging countries Seoul Bischofszell Birmingham and Burgdorf Köln Brussels Moscow Jaslo and Toronto Palafolls Warsaw Tokyo Valence Shingle Springs South Hackensack Shanghai Mexico Casablanca Milan Sydney Manaus Bangkok Dubai Singapore Sao Paulo Mumbai Reyssouze Production facilities Sales offices Avignon New acquisitions Information as at March 26th, 2012 6

Annual results 2011 An excellent year of growth 7

Highlights in 2011  Strong organic growth  Annual sales target achieved: +12.3% at constant scope and exchange rate  Growth in all markets and all geographical regions  A capital increase broadly followed by our shareholders  48.8 million euros raised in October 2011 and 1,283,840 new ordinary shares created  Operation designed to fund a new round of acquisitions  A first acquisition completed in October 2011: BURGUNDY  Consolidation in 2011 Group’s accounts on a quarter  Integration process widely advanced in Q4 2011 8

An excellent year of growth Sales* EBIT current Net Result € 253.6 m € 30.1 m € 15.6 m 11.9% 6.2% +12.0% of sales of sales Financial data as at December 31 st , 2011 vs December 31 st , 2010 * Including BURGUNDY’s sales on Q4 2011 Sales at constant scope and exchange rate up 12.3% 9

An excellent year of growth  Sharp growth of the three markets  Food & Beverage 5.00% 1.20% Most dynamic product ranges ─ Natural colours ─ Fruit & Vegetable Powders 33.30% ─ Pectins A more and more complete offer 60.50% An increasingly intensive support in terms of applications Food & Beverage Nutrition & health Personal Care Miscellaneous  Nutrition & Health F&B N&H Personal Misc. Total Care A leading position in the 1 st World market Sales in € m 153.4 84.5 3.0 12.7 253.6 A pharmaceutical status more and more +11.9% +11.9% +11.0% +15.4% +12.0% recognized  2011 vs 2010 New scope (Integration of BURGUNDY on Q4 2011) Current exchange rate 10

An excellent year of growth  Sustained growth in all three geographical regions 11.40% Developed countries Still growing despite the crisis 52.10% Consumers increasingly sensitive to the effects of their diet on their health Multiplication of natural ingredients as an alternative to synthetic products 36.60% Emerging countries Growing strongly Higher weight in Group sales: Europe / Africa Americas Asia / Pacific 14% in 2011 vs 10% in 2010 Broader commercial coverage Europe / Americas Asia / Total Africa Pacific Opening of four sales offices on the year: Sales in € m Korea, Mexico, Canada, Morocco 132.0 92.7 28.8 253.6 Strengthened customer proximity +12.1% +10.2% +17.8% +12.0%  2011 vs 2010 New scope (Integration of BURGUNDY on Q4 2011) Current exchange rate 11

Net profit up 5.5% to € 15.6 million In million € 2011 2010 % var. IFRS Revenue 253.6 226.3 +12.0% Gross margin 148.6 132.1 +12.5% % gross margin 58.6% 58.4% Current operating income 30.1 27.3 +10.4% % current operating margin 11.9% 12.1% Other operating expenses (1.6) - - Other operating income - - - Operating income 28.5 27.3 +4.6% % oeprating margin 11.3% 12.1% Cost of net financial debt (4.8) (5.6) -13.7% Other financial income and expenses 0.2 (0.7) - Income before tax 23.9 21.1 +13.4% Tax expense (8.3) (6.2) +32.4% Net income, Group share 15.6 14.8 +5.5% % net profitability 6.2% 6.5% Earnings per share (base) 2.32 2.33 12

Favourable operating leverage Impact of € 1.6 million  Increase of current EBIT  in line with the growth of the activity from non-recurring charges 30.1 Current EBIT in € m 27.3 Acquisition fees for € 0.6 million Restructuring costs for € 0.5 million Revaluation of the benefits paid to Swiss personnel (retirement commitments) for € 0.5 million 2010 2011 13

A very strong financial structure In € million In € million 31/12/11 31/12/10 31/12/11 31/12/10 IFRS IFRS LIABILITIES ASSETS Shareholders’equity 236.1 168.8 Non-current liabilities 103.9 124.4 Non-current assets 209.9 189.4 Non-current financial debts 87.3 108.4 Goodwill 93.5 83.9 Derived instruments non-current 2.3 2.5 Intangible assets 9.3 6.3 Employee benefits 2.9 2.2 Tangible assets 103.2 92.3 Deferred tax liabilities 11.4 11.2 Financial assets 1.2 0.7 Derived instruments non-current 0.3 0.5 Deferred tax assets 2.5 5.7 Current assets 216.3 168.7 Current liabilities 86.2 65.0 Inventories 115.2 98.2 Current financial debts 17.6 9.9 Derived instruments current 1.2 0.3 Derived instruments current 0.9 0.7 Payable tax assets 0.7 3.1 Current provisions - 0.6 Customers and other debtors 61.6 49.6 Payable tax liabilities 1.6 1.3 Cash and cash equivalent 37.7 17.5 Suppliers and other creditors 65.2 51.2 Bank overdrafts 0.9 1.3 TOTAL ASSETS 426.2 358.1 TOTAL LIABILITIES 426.2 358.1 14

Financial debt  A very limited financial debt  Breakdown of the net financial debt post capital increase and BURGUNDY’s acquisition by currency as at December 31st, 2011 In € million 31/12/2011 31/12/2010 21.7% Shareholders’ equity 236.1 168.8 27.3% Net financial debt 68.2 102.1 EBITDA 39.7 36.9 51.0% Gearing 28.9% 60.5% (Net financial debt / Shareholders’ equity) Euro US Dollar Leverage 1.72x 2.77x Swiss Franc (Net financial debt / EBITDA) 15

A new round of acquisitions and substantial upside to expect 16

An ambitious acquisition program  The capital increase main objective was to finance a new round of acquisitions representing approximately 5 to 6 acquisitions  3 acquisitions completed between Q4 2011 and Q1 2012 Acquired Acquisition price* Payment in Debt Date of Geographical Estimated sales companies EV cash consolidation region in 2012 € 14.2 m € 6.0 m € 8.2 m € 10 m BURGUNDY 1 st October 2011 France, Spain € 8.2 m € 5.6 m € 2.6 m € 8 m PEKTOWIN 1 st January 2012 Poland € 2 m 1 st April 2012 VALENTINE Confidential info India  Integration of the 3 acquisitions according to « NATUREX Model » * Excluding acquisition costs 17

Promising acquisitions, bearing synergies BURGUNDY  Two pharmaceutical industrial facilities with high quality and important capabilities  An additional technical know-how on new purified active ingredients and titrated extracts (grape seeds, liquorice)  A strengthened offer for a sales increase on the Pharmaceutical and Cosmetics markets  A promising new product for NAT life™ range: Utirose ™ Integration nearing completion  Significant reduction of the structure costs to stop losses (Integration of the teams, complete transfer of assets and liabilities to Naturex S.A…)  Completion of the expansion of the industrial facility of Reyssouze (France) 18

Promising acquisitions, bearing synergies PEKTOWIN  Strengthened presence in Eastern Europe  Location in a wealthy agricultural area in fruit and vegetable crops  Production capability in pectin doubled  Development of a full range of fruit and vegetable concentrates:  To integrate partly the supply of raw materials for our production facilities in F&V powders;  To support the development of our new range of colours, Vegebrite ™ (new offering of « colouring foodstuffs»)  To offer all our customers a complete range of fruit and vegetable juice concentrates Integration in progress  Integration on track for the main activities  Set up of a dedicated line of juice concentrates to start the production in the 2 nd half of 2012 Measures underway to exit as soon as possible secondary activities of the Group’s scope  19