Investors Presentation 5 February 2020 - Dr. Stephan Meeder, CFO - CropEnergies AG
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Investors Presentation
5 February 2020
Dr. Stephan Meeder, CFO
World greenhouse gas emissions
Source: EEA
CropEnergies AG, 5 February 2020 2
Ethanol – important element to decarbonize
the transport sector
High-quality fuel
Domestic
which can be
renewable raw
used in petrol
materials
engines
Climate-friendly fuel
produced sustainably
CropEnergies AG, 5 February 2020 3
Ethanol: 70% less GHG emissions compared
to 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 Transport Ethanol Ethanol CO2
Grain Grain Production Transport Liquefaction
*83,8 gCO2eq/MJ **Own calculations
CropEnergies AG, 5 February 2020 4
Renewable ethanol – advantages
Ethanol… Blending
As direct blend to petrol (e.g. E5, E10, E85)
Ethanol
As component in ETBE (octane booster)
Petrol
E10 reduces CO2, NOx and particulate matter E5 E10 E20 E85
WLTP* benchmark, label in tank flap of all new cars
Potential savings (EU): >20 Mt CO2eq (8 million less cars on the road) Super E10
Super (E5) Measurement: Super E10
Reference particulate matter Measurement: NOx
Reduction by Reduction by
Potential for 20% ethanol blending (Super E20)
Potential savings: >40 Mt CO2eq (16 million less cars on the road)
Successful racing results (Porsche/Nürburgring)
Source: bdbe
*Worldwide harmonized light-duty vehicle test
CropEnergies AG, 5 February 2020 5
Our co-products: Food and Fuel
Raw materials are utilized completely
Concept of co-production
Vital Wheat Gluten ProtiGrain® – DDGS
Valuable protein product for High protein animal feed
food and animal feed from dried stillage
industry
Food-grade liquefied CO2 ProtiWanze® – CDS
For food and beverages Liquid protein animal feed
industries from stillage
CropEnergies AG, 5 February 2020 6
The ethanol markets
World production EU production
2019e: 128 million m3 (+1%) 2019e: 7.6 million m3 (-3%)
Fuel applications: 109 million m³ (+1%) Fuel applications: 5.2 million m³ (-4%)
2020e: 129 million m3 (+1%) 2020e: 7.7 million m3 (+1%)
Fuel applications: 110 million m³ (+1%) Fuel applications: 5.3 million m³ (+2%)
Ethanol production in the EU [M m3]
10 fuel non-fuel
8
(in Mio. m 3)
6
4
2
0
2014 2015 2016 2017 2018 2019e 2020e
Source: F.O.Licht Source: F.O.Licht
CropEnergies AG, 5 February 2020 7
Market – E10 availability increases
Increasing blending obligations in EU countries in 2020 EU sales fuel ethanol [Mm3]
8 Other EU Germany
6% GHG-target 2020 requires more non-fossil alternatives 6
France UK
0.8
RED II: 1G cap max 7% but not more than 2020 + 1% 4
0.8
0.9
0.7
0.9 0.9
1.5 1.5 1.5
2
2.3 2.5 2.7
EU market 2020e [Mm³] 0
2018 2019e 2020e
Production: 5.3 +2% (add. 2.4 non-fuel) Source: F.O. Licht
Consumption: 5.9 +6% (add. 2.6 non-fuel) E10 availability across Europe
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
Source: ePURE
CropEnergies AG, 5 February 2020 8
DE: National climate protection law and
emission trading system adopted
GHG emissions in Germany
– reality and targets
National Climate protection law [Mt CO2eq]
Binding statutory emission limits for all sectors 1,000
866
813
Transport
Other Non-ETS*
800 Energy
Transport: reduction from 150 Mt CO2eq in 2020 to 95 Mt CO2eq in 2030 196
186 Industry
543
600
311 280 140
400
175
National emission trading system 200
197 197
133
375
162 150
Applicable on fossil fuels in transport and heating
95
0
2018 2020 2030 2040
2021 to 2025: ”fixed price period“ – political agreement to start with 25 €/t * in particular: buildings, agriculture, w aste
CO2 gradual increase to 55 € until 2025 GHG emissions from fuels
[kg CO2eq/liter]
From 2026 on: auctioning of CO2 certificates 4 3.4
3.0
3 2.7
Call for additional measures to achieve goals:
2.8
2
2.3
2.1
1
Increase GHG target from 6% (2020) to 16% (2030) 0.3
0.7
0.7
0.7
0
Reform of energy tax from volume (litre)-base into CO2-pricing
combustion upstream
CropEnergies AG, 5 February 2020 9
Profitability drivers
700
Higher ethanol and lower raw material prices in 1st - 3rd quarter Fuel EtOH T2 FOB Rdm. (1M)
Ethanol*: € 605 (475) /m3 600
Grain**: € 178 (187) /t
500
[€/t or €/m3]
Raw materials prices on moderate level 400 Gross profit for wheat-EtOH
World grain harvest*** 2019/20 at 2,162 Mt (+1%)
300
World stocks lower at 594 Mt (-4%)
Net raw material costs
EU harvest 318 Mt (+9%) above consumption of 290 Mt 200
Euronext Paris wheat No. 2
100
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
CropEnergies AG, 5 February 2020 10European ethanol prices [€/m3]*
*1M future ethanol T2 FOB Rotterdam
CropEnergies AG, 5 February 2020 11EU climate goals – RED II
EU Commission aims at climate-neutral
Greenhouse gas emissions in the EU Europe in 2050
[Mt CO2eq]
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 energies
in 2030 (2017: 17%)
Transport: at least 14% renewables
Volume cap for biofuels from arable crops
Promotion of biofules from waste and residues
CropEnergies AG, 5 February 2020 12RED-II: Overall target of 14% in 2030 –
the “toolbox“
Arable crops Annex IX-A Annex IX-B Electricity
Up to 7% Min. 0.2% in 2022 Max. 1.7%, but still Important component
Local, sustainable Min. 1.0 % in 2025
x2 versus today in the future
UCO imports: 10x But: discretionary
Proteins At least 3.5% in 2030
within last 10 years multiplier (x4) does not
Commitment to 1G Strong market save a single gram of
Compatibility with
as reliable basis for potential CO2
low-emission law on waste needs
Very capital intense to be ensured Extension only
transport sector
necessary reasonable if
Investment security additional electricity
and investment will be produced
incentives decisive
CropEnergies AG, 5 February 2020 13Strategic outlook
Demand: chance for new impulses
GHG reduction targets and renewable energy Ethanol chemistry
CO2 pricing can complement GHG sector targets for transport
Liquefied CO2
Ethanol Neutral alcohol
Strategy
Short-term: optimise production sites, protein co-products Gluten
Medium-term: R&D process innovation, alternative feedstocks
Long-term: R&D biochemicals, expansion of product portfolio /- growth
Fuel ethanol
ProtiGrain®
Animal feed
CropEnergies AG, 5 February 2020 14Wheat 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
CropEnergies AG, 5 February 2020 15Biorefinery of the future
Source: ePURE
CropEnergies AG, 5 February 2020 16Our locations
Wilton, UK
Ensus UK Ltd
Trading office
São Paulo, Brazil
Ryssen Chile SpA,
Santiago de Chile, Chile
Tank storages
Rotterdam Tank storages Zeitz, Germany
Amsterdam CropEnergies Bioethanol GmbH
Loon-Plage, France
Wanze, Belgium
Ryssen Alcools SAS
BioWanze SA
CropEnergies AG, 5 February 2020 17The production sites of CropEnergies AG
CropEnergies AG
Mannheim - Germany
Zeitz – Germany Wanze – Belgium Loon-Plage – France Wilton – UK
CropEnergies Bioethanol GmbH BioWanze SA Ryssen Alcools SAS Ensus UK Ltd.
Annual capacity: Annual capacity: Annual capacity: Annual capacity:
400,000 m³ ethanol 300,000 m³ ethanol >100,000 m³ ethanol for fuel applications 400,000 m³ ethanol
thereof up to 60,000 m3 neutral alcohol 60,000 t wheat gluten 90,000 m³ ethanol for traditional and 350,000 t DDGS
>300,000 t ProtiGrain® (DDGS) >400,000 t ProtiWanze® technical applications
100,000 t liquefied CO2
Raw materials: grain and sugar syrups Raw materials: wheat and sugar syrups Raw material: raw alcohol Raw material: grain
Ethanol for traditional &
ProtiGrain® Gluten Ethanol as Fuel ProtiWanze® Liquefied carbon
technical applications dioxide
Capacity: more than 1.3 million m³ ethanol and more than 1 million tonnes food and animal feed per year
CropEnergies AG, 5 February 2020 18Financials 2019/20 & Outlook
CropEnergies AG, 5 February 2020 19Outlook 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
CropEnergies AG, 5 February 2020 20Highlights 9M 2019/20
Ethanol production 729 (771) ,000 m³ - 6%
Revenues 667.6 (596.1) million € + 12%
EBITDA 101.9 (48.5) million € + 53 million €
Operating profit 70.3 (19.1) million € + 51 million €
Net earnings 50.2 (12.9) million € + 37 million €
Net financial assets (vs. 28 Feb 2019) 89.7 (26.9*) million € + 63 million €
*Incl. adjustments from IFRS 16
CropEnergies AG, 5 February 2020 21Revenues
Revenues / Production
(in € million) 9M 19/20 9M 18/19 Δ [M€ / 1,000 m3]
1,000
847
771 729
Revenues 667.6 596.1 + 12% 800
EBITDA* 101.9 48.5 > + 100% 600 679 668
Margin 15.3% 8.1% - 596
400
Depreciation* -31.6 -29.3 - 8%
200
Operating profit 70.3 19.1 > + 100%
0
9M 9M 9M
17/18 18/19 19/20
Production decrease by 6%
Production capacity utilisation adjusted to suit market conditions and to carry
Revenues 9M 2019/20
out regular maintenance activities
Increase in revenues due to significantly higher sales prices for ethanol 78%
21%
Average ethanol price**: € 605/m3 (€ 475/m3 in previous year)
1%
Ethanol Food and animal feed products Other revenues
*Without restructuring costs and special items **Ethanol FOB Rotterdam
CropEnergies AG, 5 February 2020 22EBITDA
EBITDA [M€]
120
(in € million) 9M 19/20 9M 18/19 Δ 102
88
90
Revenues 667.6 596.1 + 12%
Overall performance 651.2 601.4 + 8% 60
48
Cost of materials* -481.2 -481.1 - 0%
30
Spread (gross) 170.0 120.3 + 41%
in % of overall performance 26.1% 20.0% - 0
9M 9M 9M
Further operating expenses/income* -68.1 -71.8 + 5% 17/18 18/19 19/20
EBITDA* 101.9 48.5 > + 100% Spread (gross) / in % of
overall performance [M€]
200
170
EBITDA benefits from first-time adoption of IFRS 16 158
150
EBITDA doubled despite higher raw material prices 120
100 26%
24%
20%
50
0
9M 9M 9M
*Without restructuring costs and special items 17/18 18/19 19/20
CropEnergies AG, 5 February 2020 23Operating profit
Operating profit [M€]
80
(in € million) 9M 19/20 9M 18/19 Δ 70
59
Revenues 667.6 596.1 + 12% 60
EBITDA* 101.9 48.5 > + 100%
40
Margin 15.3% 8.1% -
Depreciation* -31.6 -29.3 - 8% 20
19
Operating profit 70.3 19.1 > + 100%
0
Margin 10.5% 3.2% - 9M 9M 9M
17/18 18/19 19/20
Slightly higher depreciation from first-time adoption of IFRS 16
Increase in operating margin from 3.2% to 10.5% yoy
*Without restructuring costs and special items
CropEnergies AG, 5 February 2020 24Net earnings for the period
Net earnings for the period
60 [M€]
(in € million) 9M 19/20 9M 18/19 Δ 50
Revenues 667.6 596.1 + 12% 45 42
EBITDA* 101.9 48.5 > + 100%
30
Operating profit 70.3 19.1 > + 100%
Restructuring costs / special items 0.0 10.1 < - 100% 13
15
At equity result 0.1 0.1 + 2%
0
Income from operations 70.5 29.4 > + 100% 9M 9M 9M
Financial result -2.6 -1.0 < - 100% 17/18 18/19 19/20
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%
Financial result increases due to unrealized currency effects
Tax rate drops to 26 (55)%
*Without restructuring costs and special items
CropEnergies AG, 5 February 2020 25Cash flow
Cash flow (+) /
(in € million) 9M 19/20 9M 18/19 Δ Investments* (-) [M€]
90 81
Cash flow 80.7 42.9 + 88%
Change in net working capital 15.3 7.1 > + 100% 60
43
Net cash flow from operating activities 96.0 49.9 + 92%
30
Investments in property, plant et al. -19.7 -8.5 < - 100%
Payments into current financial investments -14.9 0.0 -
0
Cash flow from investing activities -34.6 -8.5 < - 100% -8
-30 -20
Cash flow from financing activities -52.2 -64.9 + 20%
9M 9M
Exchange rate changes et al. 1.5 0.0 - 18/19 19/20
*excl. financial investments
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
Higher investments in PPE to enhance production plants
Significant improvement of net financial assets
**Net financial assets as of 30/11/2019: excl. adjustments from IFRS 16
CropEnergies AG, 5 February 2020 26Balance sheet structure and financial ratios
Shareholders' equity [M€]
500
(in € million) 30/11/2019 30/11/2018 Δ
481
480
Assets
Non-current assets 382.4 385.8 - 1% 460
Current assets 274.6 207.2 + 33% 442
440 432
Total assets 657.0 593.1 + 11%
420
Liabilities
400
Shareholders' equity 480.6 442.3 + 9% 30/11/17 30/11/18 30/11/19
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% -
Strong cash base
Increase in equity reflects positive earnings situation
*Net financial assets as of 30/11/2019: excl. adjustments from IFRS 16
CropEnergies AG, 5 February 2020 27Financial Calendar Contact
13 May 2020: Annual report and press and analysts’ conference CropEnergies AG
financial year 2019/20
Maximilianstraße 10
8 July 2020: Statement for the 1st quarter of 2020/21 68165 Mannheim
14 July 2020: Annual General Meeting 2020 www.cropenergies.com
7 October 2020: Report for the 1st half of 2020/21
13 January 2021: Statement for the 1st-3rd quarter of 2020/21 Investor Relations Public Relations / Marketing
Stock Information Heike Baumbach Nadine Dejung-Custance
Phone: +49 (621) 71 41 90-30 Phone: +49 (621) 71 41 90-65
ISIN: DE000A0LAUP1
ir@cropenergies.de presse@cropenergies.de
Symbol: CE2
Bloomberg / Reuters: CE2 GY / CE2G.DE
Transparency standard: Prime Standard
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.
CropEnergies AG, 5 February 2020 28You can also read
