TEREOS GROUP 2017/18 RESULTS & PROSPECTS June 12th, 2018 - PowerPoint PPT Presentation

TEREOS GROUP 2017/18 RESULTS & PROSPECTS June 12th, 2018

Resilient 2017/18 results thanks to a record performance …driving resilient results in a difficult A record performance… environment • 2 nd z 25% drop in world sugar prices World largest sugar producer • Record turnover at €5 billion • Stable EBITDA at €594 M 5.3 + 26% vs €607 M in 2016/17 and €440 M in 2015/16 MT • 75% of Group EBITDA coming from international & starch activities • Net result before distribution : + €24 M • Operational cash-flow after maintenance : PERFORMANCE PLAN 2015/18 + €220 M vs €128 M in 2016/17 et €151 M in 2015/16 • Net debt lower by €75 M + €40 M €140 M • Net debt/EBITDA ratio stable at 4.0x vs target TEREOS 2017/18 ANNUAL RESULTS 2

1 MARKETS IN PROFOUND MUTATION

A world sugar price close to the lowest point in a decade • World sugar prices down World raw sugar price (NY11) (2008 � 2018) 25% over the FY US$CTS/LB • Major increase in sugar 40 crops in India and Thailand, 35 reaching record levels 30 • Growth in Europe white 25 sugar production (+25%) following end of quotas YtoY: 20 -25% • 15 Short selling by hedge funds have added to the downward 10 pressure 5 • A cyclical market 0 TEREOS 2017/18 ANNUAL RESULTS 4

Liberalization structurally changed the European sugar market European white sugar price (ex-works, €/t, EU Observatory) • Prices reached a historic low 650 in Europe • 600 Down 25% over a year and 40% since the announcement 550 of the reform • Market equilibrium 500 profoundly changed by deregulation 450 • A market in structural 400 surplus 350 • Domestic prices strongly influenced by world prices 300 TEREOS 2017/18 ANNUAL RESULTS 5

Despite this unfavorable environment, Tereos increased revenues by some 20% over 2 years Growing turnover… …driven by • Market share gains in Europe and Brazil • Strengthening of distribution networks +19% • New consumer expectations • Market share gains at export 4 987 • Ramp-up of Tereos 4 819 Commodities… • … supported by new logistics 4 201 infrastructure in France 2015/16 2016/17 2017/18 TEREOS 2017/18 ANNUAL RESULTS 6

In Europe, market liberalization is changing the old status quo A sugar market share more in line with Tereos natural potential � Share before end of quotas: 11 % � Current market share: 14 % Tereos is innovating to respond to new consumer expectations � Health & Nutrition: new sweetening formulations France UK & Ireland Germany, NE Europe � Plant proteins: Tereos, 2 nd largest in Italy, SE Europe Iberia Benelux, Nordics wheat protein worldwide � Tereos, one of the leaders in organic sugar in Europe TEREOS 2017/18 ANNUAL RESULTS 7

New consumer expectations SIMPLICITY & E-COMMERCE HEALTH & SUSTAINABILITY VALUE NUTRITION TEREOS 2017/18 ANNUAL RESULTS 8

Sweet&You : our new nutritional reformulation solutions A NEW NUTRITIONAL REFORMULATION SERVICE WITH NATURAL SWEETENING PRODUCTS TEREOS 2017/18 ANNUAL RESULTS 9

Launch of EU’s 1 st high fructose content syrup • A new high fructose content syrup : 95% fructose • A natural sweetener from wheat • A high sweetening power allowing to limit calorie intake • Production launch on October 1 st , 2017 in our Aalst (Belgium) plant • Used in beverages , fruit preparation , ice creams and cakes TEREOS 2017/18 ANNUAL RESULTS 10

Tereos : among the organic sugar leaders • A fast growing market: x6 in 16 years worldwide x2 in 10 years in Europe x7 in 17 years in France • Tereos is one of the leaders in organic sugar distribution in Europe • Ongoing development of own complete product offer in 2019 • Organic beet sugar in France • Organic cane sugar in Brazil and Mozambique TEREOS 2017/18 ANNUAL RESULTS 11

E-Commerce solution launched in Brazil OBJECTIVES 1 REACH SMALL retail customers 2 HOW ? Omnichannel platform 3 PILOT Customer Behaviour TEREOS 2017/18 ANNUAL RESULTS 12

Strong commitments to ensure sustainable activities 2020 TARGETS ENERGY CONSUMPTION - 15 % 100% CARBON FOR THE FRENCH SUGAR NEUTRAL FACTORIES VS. 2010 OF COOPERATIVE GROWERS THAT CARRIED OUT THE SELF- 100 % EVALUATION TEST ARE RATED GOLD OR SILVER FOR THE SUGARCANE FACTORIES 13 TEREOS 2017/18 ANNUAL RESULTS

Commodities are increasingly driven by emerging markets Developed countries will only represent in 2025 24% of world consumption A slightly growing worldwide sugar demand +1.8% on average Growth concentrated in emerging countries +2.2% TEREOS 2017/18 ANNUAL RESULTS 14

New logistics facilities dedicated to export Escaudoeuvres (France): opening of new export logistics unit TEREOS 2017/18 ANNUAL RESULTS 15

Two new commercial offices: Vietnam and South Africa EUROPE ASIA India Singapore China Vietnam Indonesia LATIN AFRICA AMERICA INDIAN OCEAN Brazil Kenya Tanzania Mozambique South Africa Commercial offices Reunion Island Industrial sites TEREOS 2017/18 ANNUAL RESULTS 16

Thanks to its exports Tereos accompanies growth in emerging countries Set-up of Tereos Commodities in 2014 1.4 Mt + 100 countries 2017/18 1.4 Mt Tereos sells of sugar sold today its products 2016/17 in more than 1 Mt 100 countries TEREOS 2017/18 ANNUAL RESULTS 17

2 nd largest world player of wheat protein SINCE THE OPENING OF ITS COMMERCIAL OFFICE IN SINGAPORE IN 2015, TEREOS EXPORTS WHEAT • Tereos makes up some 20% of world PROTEINS IN 18 COUNTRIES market • 7 facilities in the 2 major production areas : Europe and China Turkey Tieling • Europe and China account for 80% of India Israël Myanmar Dongguan world production Vietnam Philippines • A market growing by 10% per year on Tereos Singapore Indonesia average • Tereos gained an 11% market share in Australia Asia thanks to its presence in South Africa Singapore and China TEREOS 2017/18 ANNUAL RESULTS 18

2 TEREOS AN AGRICULTURAL AND INDUSTRIAL EXPERTISE

Tereos Sugar France: Record 1st post-quota campaign TEREOS SUGAR PRODUCTION 2000 to 2017 (kt) 3000000 +800 END OF QUOTAS kt 2500000 Average production per sugar plant BÉGHIN SAY ACQUISITION 2000000 + 45% +900 kt 1500000 2016 : 190 kt 2017 : 275 kt 1000000 500000 0 TEREOS 2017/18 ANNUAL RESULTS 20

Excellent sugar campaign in Brazil Best agricultural performance among Industrial yields the top players in Brazil improvement z 11,5 11,2 10,8 10,7 10,2 10,1 90,5 9,6 9,5 8,8 88,9 8,1 88,2 87,7 SUGAR PRODUCTION IN BRAZIL TEREOS PLANTS IN BRAZIL (T/HA) (%) TEREOS 2017/18 ANNUAL RESULTS 21

World’s 2 nd largest sugar producer in 2018 SUGAR PRODUCTION (raw sugar equivalent – Mt) Südzucker 6,250 Tereos 5,300 Mitr Phol 4,400 Raizen 4,300 AB Sugar 3,400 Nordzucker 2,900 Thai Roong Ruang 2,600 COFCO 2,500 Wilmar 2,400 Cristal Union 2,200 0 1000 2000 3000 4000 5000 6000 7000 Source: FO Licht, May 28, 2018 TEREOS 2017/18 ANNUAL RESULTS 22

Starch activities production up 11% …IN BRAZIL STEADY GROWTH IN ASIA… AND IN ROOTS STARCH • Brazil – Corn : +30% grind capacity vs 2016/17 � Indonesia: +36% grind volume vs 2016/17 • Brazil – Cassava: start of a new maltodextrin line +45% own plantation vs 2016/17, � China - Tieling: +48% starch volume vs 2016/17 product portfolio development …AND IN FRANCE � China – Dongguan: +73% grind volume vs 2016/17 • France – Potato starch: product portfolio development +40% volume processed vs 2016/17 TEREOS 2017/18 ANNUAL RESULTS 23

Tereos is strengthening its competitiveness PERFORMANCE PLAN 2015/18 €140 M of operational gains i.e. + €40 M vs. initial target TEREOS 2017/18 ANNUAL RESULTS 24

3 FINANCIALS TEREOS 2017/18 ANNUAL RESULTS

Operating results in line with 2016/17, despite an unfavorable environment +3% Net result excluding price -2% complements 107 4 987 4 819 607 594 As 24 reported FY 16/17 March FY 17/18 March FY 16/17 March FY 17/18 March -18 FY 16/17 FY 17/18 March March Revenues Adjusted EBITDA Net result excluding price complements €4,987 M €594 M €24 M + 5% vs. LY at constant -2% vs. LY at constant Net result excluding price exchange rate exchange rate complements and exceptionals: +€54 M 11.9 % margin (-0.7 point) TEREOS 2017/18 ANNUAL RESULTS 26

Group P&L P&L 16/17 17/18 var Tereos Group M€ FY FY M€ % Revenues 4 819 4 987 168 3% Adj. EBITDA 607 594 -13 -2% 12,6% 11,9% Adj. EBITDA Margin Seasonality adjustment 0 5 5 na -382 -385 -4 1% Depreciations / amortization Other 11 -111 -122 na 237 103 -134 -56% EBIT (after price complements) EBIT Margin 4,9% 2,1% -102 -144 -42 41% Financial Result Corporate income tax -54 -18 36 -66% 25 41 16 61% Share of profit of associates 107 -18 -125 -117% Net Results “Other” includes notably Price complements (-€ 42 M), adjustment in fair value of � biological assets (-€ 38 M) and provision for Europe reorganization (-€ 30 M) TEREOS 2017/18 ANNUAL RESULTS 27