Tereos Group 2016/17 Results & Prospects June 22nd, 2017
1 2016/17 Environment & Results
FY2016/17: a world environment globally favorable WORLD SUGAR PRICE (US$CTS/LB) 40,00 35,00 FY 30,00 2016/17 25,00 20,00 AVERAGE : 18.88 US$CTS/LB 15,00 10,00 5,00 NY#11 Source : Bloomberg TEREOS PRESENTATION 3
A slight improvement in Europe Average quota sugar price within the EU 750 700 650 QUOTA SELLING PRICE IN €/T 600 550 500 450 400 350 Quota UE (EUR/MT) Source : European commission TEREOS PRESENTATION 4
Operating results up by 38% 4 819 607 4 201 107 440 FY 15/16 March 12 months FY 16/17 March 12 months -40 FY 15/16 March 12 months FY 16/17 March 12 months FY 15/16 March 12months FY 16/17 March 12months 107 M€ 4 819 M€ 607 M€ Net result after price Revenues Adjusted EBITDA complements • Increase by 14.7% at current • Increase by 38% at current exchange exchange rate rate • Increase by 13.7% at constant • Increase by 32% at constant exchange rate exchange rate • 12.6 % margin (+2.1 ppts) TEREOS PRESENTATION 5
Results proving the relevance of the Group development strategy… 2016/17 ADJUSTED EBITDA BY ACTIVITY 1% OTHER 16% 24% STARCH AND PROTEINS SUGAR FRANCE 8% 75% SUGAR EUROPE (EXCL. FRANCE) of operational results = 7% Sugar activities outside France SUGAR INTERNATIONAL + Starch & Sweeteners (EXCL. BRAZIL) 44% SUGAR BRAZIL TEREOS PRESENTATION 6
A strong result growth derived from its development GROUP EBITDA (M€) 607 x 3.7 440 458 286 320 124 162 149 120 sept 2005/06 2015/16 2016/17 Rest of the Group Sugar France Source : TEREOS PRESENTATION 7
…historic results in Brazil TEREOS SUGAR BRAZIL EBITDA (M€) 300 x 5.7 250 200 150 100 50 0 Source : TEREOS PRESENTATION 8
2 2016/17 Financials
Group P&L P&L var FY 15/16 FY 16/17 Tereos Group vs PF* M€ PF* M€ % Revenues 4 201 4 819 618 14,7% 440 607 168 38% Adj. EBITDA Adj. EBITDA Margin 10,5% 12,6% EBIT (after price complements) 94 237 143 153% EBIT Margin 2,2% 4,9% Financial Result -103 -102 1 -1% Corporate income tax -36 -54 -18 50% Share of profit of associates 6 25 20 355% Net Results -40 107 146 na * Proforma = IAS 41 Revised on Biological assets TEREOS PRESENTATION 10
Revenue Sugar Europe � Higher sugar prices � Production mix oriented towards sugar var Revenue FY 15/16 FY 16/17 Sugar International M€ M€ % � World sugar and Brazilian ethanol prices Sugar Europe 1 760 1 861 101 5,7% increase Sugar International 1 066 1 317 251 23,6% Starch & Sweeteners 1 509 1 498 -11 -0,7% � Product mix orientation towards sugar Others (incl. Elim) -133 144 277 na � Positive forex impact Tereos Group 4 201 4 819 618 14,7% * Proforma = IAS 41 Revised on Biological assets Starch & Sweeteners � Volume decrease in Europe due to poor quality of French wheat crop � Volume increase in Brazil and Indonesia Positive Forex impact: 41M€ Others Variation at constant exchange rate: +13.7% � Ramp-up of Tereos Commodities Sugar TEREOS PRESENTATION 11
Adjusted EBITDA and margin (M€ ) 794 703 607 16,1% 15,0% 453 439 12,6% 10,5% 10,5% 2012/13 2013/14 2014/15 2015/16 2016/17 March March March March March TEREOS PRESENTATION 12
Adjusted EBITDA Sugar Europe � Increase of sugar prices in the second half of fiscal year � Optimization of sugar/ethanol mix � Operational performance plan benefits var Adj EBITDA FY 15/16 FY 16/17 Sugar International vs PF* M€ PF* � Favorable world Sugar and Brazilian Ethanol M€ % Sugar Europe 146 195 49 34% price impact Sugar International 207 310 103 50% � Optimization of sugar/ethanol mix Starch & Sweeteners 92 94 3 3% Others (incl. Elim) -5 8 12 na � Operational performance plan benefits Tereos Group 440 607 168 38% especially in Brazil * Proforma = IAS 41 Revised on Biological assets � Broadly stable contribution from Indian Ocean and Africa Starch & Sweeteners � Sustained price levels in Europe Positive Forex impact: 25M€ � Productivity plans and lower energy price Variation at constant exchange rate: +33% � Industrial yields strongly impacted by poor quality of wheat in France � Benefits of volume growth in emerging markets TEREOS PRESENTATION 13
Investments Investments excl. FY 15/16 FY 16/17 Act vs LY Financial M€ Act. Act. Sugar Europe 91 115 24 Sugar International 161 216 55 Starch and Sweeteners 57 82 26 Others 1 2 1 TOTAL Investments exd. Fin 309 414 105 Maintenance & Renewal 221 265 43 CAPEX 88 150 62 TOTAL Investments exd. Fin. 309 414 105 Financial investments 147 229 82 � CAPEX � Finalization of investments to prepare the end of European sugar regime � Capacity debottlenecking and sugar mix improvement in Sugar Brazil � Investments in S&S division to support performance plan � Maintenance and renewal � Investments increase mainly in Brazil to support own cane expansion � Financial Investments � Petrobras stake in Guarani (€197 million), minority shares in Tereos International (€26 million) TEREOS PRESENTATION 14
Group cash flow and net debt - €229m - €21m 118 224 -32 15 + €393m 150 -508 265 2 425 115 2 100 2 079 Net Debt (31 Cash Flow Change in Maintenance Capex Financial Dividends CF related to FOREX and Net Debt (31 March 2016) working & Renewal investments received and equity others impacts March 2017) capital disposals TEREOS PRESENTATION 15
Leverage Net debt evolution (M€) Strong 2 425 liquidity** 2 212 2 166 2 159 2 106 2 099 2 079 €1 204m 2 024 1 960 6,1 x 4,7 x 4,5 x 4,0 x 3,8 x 3,1 x 2,8 x 2,8 x 2,5 x Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 (A) (A) (A) (A) (A) (A) (A) (A) (A) Leverage (*) Defined as net debt / adjusted EBITDA (**) Defined as cash & cash equivalent plus undrawn credit lines as at 31 st March, 2017 TEREOS PRESENTATION 16
Debt maturity profile and diversity Debt amortization schedule as of March 2016 (M€) Average tenor : 2.1 years 237 816 496 331 248 156 121 23 18 2 1 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 After Debt amortization schedule as of March 2017 pro forma* the refinancing (M€) Average tenor : 3.3 years 92 498 597 449 459 277 93 210 216 100 3 2 2 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 After Mid-term bank facilities Extendible Short-term lines Bonds / CRA (*) New €450m 5-years RCF for Tereos Sugar France and R$ 313m securitization (“CRA”) for Tereos Sugar&Ethanol Brazil TEREOS PRESENTATION 17
Group ratings BB/Stable BB/Stable Group rating Rating BB BB Bond 2020 Rating BB BB Bond 2023 Outlook stable Outlook stable Last change Reaffirmed on June 2017 Reaffirmed on 07/06/2017 TEREOS PRESENTATION 18
3 Sugar & Sweeteners STAKES & OUTLOOK
Tereos : the world’s 3 rd largest sugar group in 2017 RANKING OF WORLD SUGAR PRODUCTION BY COMPANY (1 000 TONNES GROSS VALUE - 2016/17) 4000 3000 2000 1000 Source : FO Licht – May 2017 TEREOS PRESENTATION 20
End of quotas : Europe to become net exporter again in 2017 ADDITIONAL PRODUCTION EUROPEAN SUGARBEET ACREAGE +15% EUROPEAN MARKET EXPECTED PRODUCTION IMPORT DECREASE INCREASE OF +18 % +22 % -1.5 AND - 2 MT +/- 3.5 Mt FRANCE GERMANY of sugar and isoglucose INTERNATIONALLY EXPORTS INCREASE +1.5 AND + 2 MT PRÉSENTATION TEREOS 21
Tereos : a sugarbeet incentive system tailored to the reform’s stakes SIGNIFICANT TEREOS ADVANTAGES A guaranteed minimum price BEYOND BASE PRICE for 2017 and 2018 campaigns: 25 €/tonne Sugarbeet transportation costs covered by Tereos Sugar content scale more generous for higher contents Advantages significantly beyond base revenue: Financial support for a more than 450€/ha portion of costs of crop on average over the last 10 years protection measures Financial support for a part of road maintenance costs Significant support for long-term campaigns : € 11 million TEREOS PRESENTATION 22
Tereos : sugarbeet tonnage up by 25% SUGARBEET TONNAGE PROCESSED IN FRANCE (MT) +25% 19 16 15 2015/16 2016/17 2017/18 (est.) Source : TEREOS PRESENTATION 23
Tereos : unprecedented industrial productivity efforts in Europe FORECAST DECREASE OF TEREOS PRODUCTION COST IN FRANCE -15% PLANT INVESTMENT AND MODERNIZATION PLAN 600 M€ OVER 4 YEARS TEREOS INDUSTRIAL EMPLOYMENT IN FRANCE + 30% OVER THE LAST 7 YEARS 2015/16 2016/17 2017/18 (est.) Source : TEREOS PRESENTATION 24
Balanced European sales BREAKDOWN OF 2016/17 EUROPEAN REVENUES 14% 14% 19% France UK & Ireland Iberia Italy, SE Europe 26% Germany, NE Europe Benelux, Nordics 11% 16% TEREOS PRESENTATION 25
Growth lies today in emerging countries A world demand slightly growing 1.9% average A growth focused in emerging countries +2.5% By 2025 developed countries will only make up 24% of the world consumption TEREOS PRESENTATION 26
Seizing opportunities offered by developing countries SPLIT OF 2016/17 TEREOS REVENUES BY COUNTRY OF DELIVERY FRANCE 43 % 25% EUROPE (EXCL. FRANCE) 7 % 15 % 10 % AMERICA AFRICA ASIA / MIDDLE EAST 75% of our sales outside France, 32% outside Europe TEREOS PRESENTATION 27
Recommend
More recommend
