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

SFAF Presentation April 2nd, 2012

NATUREX

Annual Results 2011

• 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

Contents

3

Strong fundamentals, creating value

4

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

5

A global offer into three complementary markets

Innovative active natural ingredients, plant extracts and functional raw material Natural ingredients with aromatic, preservative, healthy, texturing and sweetening properties Plant extracts and innovative active ingredients for nutraceutical applications and pharmaceuticals

6

A balanced worldwide presence in both developed and emerging countries

Shingle Springs South Hackensack Milan Avignon Singapore Shanghai Tokyo Birmingham Brussels Köln

Production facilities Sales offices

Manaus Sao Paulo Sydney Valence Dubai Moscow Bischofszell and Burgdorf Casablanca Bangkok Seoul Toronto Mexico Palafolls Reyssouze

New acquisitions

Jaslo and Warsaw Mumbai

Information as at March 26th, 2012

7

Annual results 2011 An excellent year of growth

8

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

9

An excellent year of growth

Sales* € 253.6 m

+12.0%

EBIT current € 30.1 m

11.9%

• f sales

Net Result € 15.6 m

6.2%

• f sales

Financial data as at December 31st, 2011 vs December 31st, 2010 * Including BURGUNDY’s sales on Q4 2011 Sales at constant scope and exchange rate up 12.3%

An excellent year of growth

 Sharp growth of the three markets

60.50% 33.30% 1.20% 5.00% Food & Beverage Nutrition & health Personal Care Miscellaneous  2011 vs 2010 New scope (Integration of BURGUNDY on Q4 2011) Current exchange rate

F&B N&H Personal Care Misc. Total 153.4 84.5 3.0 12.7 253.6 +11.9% +11.9% +11.0% +15.4% +12.0%

Sales in €m

10

 Food & Beverage

Most dynamic product ranges ─ Natural colours ─ Fruit & Vegetable Powders ─ Pectins A more and more complete offer An increasingly intensive support in terms of applications

 Nutrition & Health

A leading position in the 1st World market A pharmaceutical status more and more recognized

An excellent year of growth

 Sustained growth in all three geographical regions Developed countries Still growing despite the crisis

Consumers increasingly sensitive to the effects of their diet on their health Multiplication of natural ingredients as an alternative to synthetic products

Emerging countries Growing strongly

Higher weight in Group sales: 14% in 2011 vs 10% in 2010

Broader commercial coverage

Opening of four sales offices on the year: Korea, Mexico, Canada, Morocco Strengthened customer proximity

11

Europe / Africa Americas Asia / Pacific Total 132.0 92.7 28.8 253.6 +12.1% +10.2% +17.8% +12.0%

Sales in €m 52.10% 36.60% 11.40% Europe / Africa Americas Asia / Pacific  2011 vs 2010 New scope (Integration of BURGUNDY on Q4 2011) Current exchange rate

12

Net profit up 5.5% to €15.6 million

In million € IFRS 2011 2010 % var.

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

13

Favourable operating leverage

27.3 30.1

2010 2011 Current EBIT in €m

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  Increase of current EBIT in line with the growth of the activity  Impact of €1.6 million from non-recurring charges

14

A very strong financial structure

In € million IFRS ASSETS 31/12/11 31/12/10

Non-current assets 209.9 189.4

Goodwill 93.5 83.9 Intangible assets 9.3 6.3 Tangible assets 103.2 92.3 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

Inventories 115.2 98.2 Derived instruments current 1.2 0.3 Payable tax assets 0.7 3.1 Customers and other debtors 61.6 49.6 Cash and cash equivalent 37.7 17.5

TOTAL ASSETS 426.2 358.1

In € million IFRS LIABILITIES 31/12/11 31/12/10

Shareholders’equity 236.1 168.8 Non-current liabilities 103.9 124.4

Non-current financial debts 87.3 108.4 Derived instruments non-current 2.3 2.5 Employee benefits 2.9 2.2 Deferred tax liabilities 11.4 11.2

Current liabilities 86.2 65.0

Current financial debts 17.6 9.9 Derived instruments current 0.9 0.7 Current provisions

• 0.6

Payable tax liabilities 1.6 1.3 Suppliers and other creditors 65.2 51.2 Bank overdrafts 0.9 1.3

TOTAL LIABILITIES 426.2 358.1

15

Financial debt

In € million 31/12/2011 31/12/2010

Shareholders’ equity 236.1 168.8

Net financial debt 68.2 102.1 EBITDA 39.7 36.9

Gearing

(Net financial debt / Shareholders’ equity)

28.9% 60.5% Leverage

(Net financial debt / EBITDA)

1.72x 2.77x  Breakdown of the net financial debt by currency as at December 31st, 2011  A very limited financial debt post capital increase and BURGUNDY’s acquisition

27.3% 51.0% 21.7%

Euro US Dollar Swiss Franc

16

A new round of acquisitions and substantial upside to expect

17

An ambitious acquisition program

Acquired companies Acquisition price* EV Payment in cash Debt Date of consolidation Geographical region Estimated sales in 2012 BURGUNDY € 14.2 m € 6.0 m € 8.2 m 1st October 2011 France, Spain € 10 m PEKTOWIN € 8.2 m € 5.6 m € 2.6 m 1st January 2012 Poland € 8 m VALENTINE Confidential info 1st April 2012 India € 2 m

 3 acquisitions completed between Q4 2011 and Q1 2012  The capital increase main objective was to finance a new round of acquisitions representing approximately 5 to 6 acquisitions  Integration of the 3 acquisitions according to « NATUREX Model »

* Excluding acquisition costs

18

BURGUNDY

Promising acquisitions, bearing synergies

 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)

19

PEKTOWIN

Promising acquisitions, bearing synergies

 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 2nd half of 2012
• Measures underway to exit as soon as possible secondary activities of the Group’s scope

20

VALENTINE

Promising acquisitions, bearing synergies

 Penetration on a dynamic market with high growth potential  Image of local producer in India: important factor of success in NATUREX’s business  High-quality clientele within the Indian food industry: Local companies and subsidiaries of multinationals  Strengthening the existing commercial structure and creation of a purchasing office to benefit from local sourcing at the scale of the Group Starting the integration

21

The acquisition program is ongoing The acquisition program is ongoing: Further projects are currently under review

22

Favourable market trends with positive outlook

23

Growing weight of emerging countries into the World economy

5 10 15 20

 Developed countries represent 64.1% of the World GDP in USD vs 35.9% for emerging countries  In parity with purchasing power, developed countries represent 51% vs 49% for emerging countries

Ranking of countries by GDP in parity with purchasing power

(in thousand of USD)

Source: statistiques-mondiales.com

24

Market trends still favourable

• Growth remains bright in developed countries
• Increasing attention of consumers to their health and the naturalness of the products
• Multiplication of innovations from the industry players in order to renew their offer

and differentiate their products from their competitors

• Regulations progressively becoming tougher
• Very rapid growth in emerging countries
• Substantial development of a urban middle class for which the consumption codes are largely

influenced by Western culture

• Local actors and subsidiaries of multinationals in the food industry are moving to the natural

to meet with this new demand

• Regulations more and more apply Western standards

25

Very positive outlook NATUREX is uniquely positioned

to benefit from these positive trends and to best meet with its customers’ needs

• Regional production centres: Americas/ Europe-Africa / Asia-Pacific
• Commercial relays of proximity
• A diversified range of products for customized solutions
• An integrated worldwide sourcing

26

NATUREX and the Stock Market

27

Shareholding structure

 SGD (Partnership Limited by Share) is controlled by J. DIKANSKY The capital of SGD is owned by J. DIKANSKY/Family for 41.85% and by FINASUCRE for 58.15%  There is nor more Shareholders Agreement nor action in concert between SGD / J. DIKANSKY and NATRACEUTICAL

Source: SGSS/GIS – March 2012

Capital

7,705,580 shares

Voting rights

6,925,898 votes

SGD /

• J. DIKANSKY

21.00% Natraceutical 20.70% Free float 58.24%

Auto-Detention 0.06%

Free float 67.86% Natraceutical 8.77% .SGD/J. DIKANSKY 23,37%

28

Strong share price outperformance

Rise in share value

January 2011-March 2012

• Number of shares: 7,705,580

NYSE Euronext Paris – Compartment B

since October 1996

• 6,718,272 ordinary shares (FR0000054694)
• 987,308 preferred shares (FR0010833251)
• Stock market capitalisation: €415m

(As of March 27th, 2012)

• Sponsored Level I, ADR program

Depositary Bank: BNY Mellon

Trade on over-the-counter market in the US under symbol NTUXY Ratio: 4 ADRs for 1 ordinary share of NATUREX

• Fiscal Year: from 1st January to 31st December
• AGM: June
• Liquidity contract: NATIXIS
• Analysts: BERENBERG Capital Markets, CM-CIC

Securities, ID Midcaps, KEPLER Capital Markets, NATIXIS, PORTZAMPARC, SOCIETE GENERALE, ARROWHEAD Rise over the past 12 months: +31,34%

TICKER: NRX - REUTERS: NATU.PA ; BLOOMBERG: NRX:FP ; DR Symbol: NTUXY Indices: CAC Small, Gaïa Index Eligible at SRD “long-only” (Deferred Settlement Service) Sponsored, Level I, American Depositary Receipt program with BNY Mellon

29

Agenda and contacts

30

Financial communications agenda

Release of financial information after the market close Financial information 1st quarter sales 2012 April 26th, 2012 1st quarter results 2012 May 29th, 2012 1st half-year sales 2012 July 25th, 2012 1st half-year results 2012 August 30th, 2012 3rd quarter sales 2012 November 5th, 2012 3rd quarter results 2012 November 29th, 2012 Annual sales 2012 January 24th, 2013 Annual results 2012 March 27th, 2013 Next events SFAF analysts meeting (annual results) Paris April 2nd, 2012 Smallcap Event Paris April 12th and 13th, 2012 Consumer Ingredients Event (BNP Paribas) London May 22nd, 2012 Annual General Meeting Paris June 8th, 2012 SFAF analysts meeting (half-year results) September 14th, 2012 Autumn Conference (Cheuvreux) Paris September 19th and 20th, 2012 Midcap event Paris September 24th and 25th, 2012 Actionaria Trade show Paris November 16th and 17th, 2012 Consumer Ingredients Conference (JP Morgan) London November 20th, 2012 Midcap Event Geneva December 10th and 11th, 2012

31

Thank you for your attention Contacts

www.naturex.com

Jacques Dikansky President and CEO E-mail : j.dikansky@naturex.com

• Tel. : + 33 (0)4 90 23 96 89

Thierry Lambert VP and CFO E-mail : t.lambert@naturex.com

• Tel. : + 33 (0)4 90 23 96 89

Carole Alexandre Investor Relations E-mail : c.alexandre@naturex.com

• Tel. : + 33 (0)4 90 23 78 28

32

Appendix

33

Cash flow statement

En M€ - IFRS 31/12/2011 31/12/2010 Net cash flow from operating activities, bbefore change in WCR 42,1 33,4 Tax paid (4,5) (6,3) Change in working capital requirement (11,9) (10,1) Net cash flow from operating activities 25,6 17,1 Net cash from investment activities (25,9) (15,7) Net cash from financing activities 20,9 4,2 Change in cash flow 20,6 5,6 Closing cash position 36,7 16,2 Opening cash position 16,2 10,4 Effects of foreign exchange rate changes on cash held (0,1) (0,2)

34

A still fragmented market

 Main competitors by product range Food & Beverage Nutrition & Health Natural colors Flavoring extracts Antioxidant Rosemary extracts

F&V powders and juice concentrates

Fruit pectins Extracts with beneficial effects on health Chris Hansen (Denmark)  CPKelco (USA)  Cargill (USA)  Danisco (Denmark)   D.D Williamson (USA)  Diana Naturals (France)  Euromed (Spain)  Finzelberg-Plantextrakt (Germany)  Frutarom (Israel)  GNT (Germany)  Indena (Italy)  Kalsec (USA)   Kerry (Ireland)  Sensient (USA)  Vitiva (Slovenia) 

35

A science-based business driven by innovation

Worldwide Sourcing

 Selection of high quality raw materials  Tight monitoring of suppliers

Research & Development

 Innovations together with customers  Projects ASMF (Italy), SENIFOOD (Spain)

Quality Control

 Traceability throughout the production cycle  Advanced analytical equipment (HPLC, PPSL…)

Sustainability and Corporate Responsibility

36

• Social Responsibility
• Member of the United Nations Global Compact

Committed to the principles of human rights, labour, environment and anti-corruption

• Member of Sedex

To share with our suppliers ethical data and to improve ethical performance of our supply chain

• Environmental sustainability

For sustainable sourcing, manufacturing and offering

• Quality, safety and environment certifications
• ISO 9001, ISO 14001
• OHSAS 18001
• Food BRC
• USDA Organic
• cGMP (NSF)
• API (Active Pharmaceuticals Ingredients)
• Bio european label
• All manufacturing sites are Kosher and Halal approved

Sustainability and Corporate Responsibility

37

• Community involvement

To manage the impacts of our business on communities and to improve their living standards

• NATUREX Foundation

Created in March 2008

• Dedicated to improving life conditions in communities from which

NATUREX derives plant materials

• Supports in particular education, medicine, environment and basic

necessities, outside of any economic interest

www.naturex.com