Investors Presentation - June 2021 Dr Stephan Meeder, CEO/CFO Heike Baumbach, Head of Investor Relations - CropEnergies AG
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investors Presentation
June 2021
Dr Stephan Meeder, CEO/CFO
Heike Baumbach, Head of Investor Relations
Two challenges of our times
GHG emissions: worldwide >50 bn. t CO2eq./a Corona: worldwide more than 177 million infected
As of 9 June 2021
Source: EEA Source: https://www.worldometers.info/coronavirus/worldwide-graphs/#total-cases
CropEnergies AG, June 2021 2
Vision and mission OUR VISION Our vision is a climate friendly world in which renewable resources are key to ensuring the welfare of today‘s and future generations. OUR MISSION Our mission is to be the most trusted partner for our customers delivering sustainable products made out of biomass. Our new appearance: CropEnergies AG, June 2021 3
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, June 2021 4
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
CropEnergies AG, June 2021 5
Renewable ethanol
Advantages
Blending
• Ethanol…
• 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)
• Potential for 20% ethanol blending (Super E20)
• Potential savings: >40 Mt CO2eq (16 million less cars on the road)
• Successful racing results (Porsche/Nürburgring)
• Technical analysis for standardisation initiated
*Worldwide harmonized light-duty vehicle test
CropEnergies AG, June 2021 6
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, June 2021 7
The ethanol markets
EU & UK production
• World production • EU & UK production
• 2021e: 122 million m3 (+3%) • 2021e: 7.7 million m3 (+3%)
• Fuel applications: 102 million m³ (+3%) • Fuel applications: 5.3 million m³ (+5%)
• 2022e: 128 million m3 (+5%) • 2022e: 8.1 million m3 (+5%)
• Fuel applications: 107 million m³ (+5%) • Fuel applications: 5.8 million m³ (+8%)
World production of ethanol [M m3] EU production of ethanol [M m3]
150 9
100 6
Source: FO Licht (2021)
Source: FO Licht (2021)
50 3
2017 2018 2019 2020 2021e 2022e 2016 2017 2018 2019 2020 2021e 2022e
USA Brasil EU & UK other fuel non-fuel
CropEnergies AG, June 2021 8
Market development
Volumes
• Ethanol market in the EU27 & UK in 2021 (in million m³) EU27 & UK: ethanol sales [1,000 m3]
8,599 8,580 8,981
8,317
• Consumption: 8.6 +3% (5.7 fuel | 2.9 non-fuel) ,
9.000
Source: IHS Markit (2021)
982 965 965
955
1,618 1,860
• Production: 7.7 +3% (5.3 fuel | 2.4 non-fuel) 1,950 1,890
,
4.500
• Corona crisis 2020 5,999 6,156
5,412 5,725
• Fuel ethanol sales decline less than expected –
compensated by higher blending obligations 0
2019 2020 2021 2022
• Rise for industrial use (e. g. disinfectants and sanitizers) by about 20% Fuel Industrial Potable
• 2021 only slight recovery in fuel ethanol sales expected E10 shares in selected countries
100%
Source: ePURE (2021)
100%
100%
98%
• Premium E10 continues to be on the rise in Europe
95%
95%
95%
90%
80%
72%
• E10 already established as #1 petrol in many European countries
70%
50%
14%
47%
45%
• In Denmark, Lithuania, Slovakia and Hungary available since
1 Jan 2020 and already a share of 90-95% of the petrol market 0%
• Will be launched in Sweden and UK in August and September, respectively
CropEnergies AG, June 2021 9
Market development
Prices and feedstock market
European ethanol prices [€/m3]
850
• Ethanol prices with high volatility in FY 20/21
• Prices* marked by course of pandemic
• All-time low in March with € 350 /m³ 600
• All-time high in September with € 840 /m³
• Average price in financial year € 583 (620) /m³ FY 19/20 FY 20/21 FY 21/22
350
• Feedstock markets
• Grain prices increased in FY 20/21**: € 199 (181) /t Euronext Paris Wheat [€/t]
275
• Price increase especially in the last quarter
• EU27 grain harvest expected to increase again in 21/22 – 290 (278) Mt
• Comfortable supply situation – production exceeds consumption 200
FY 19/20 FY 20/21 FY 21/22
125
* T2 FOB Rdam ** Wheat (Euronext), next expiry
CropEnergies AG, June 2021 10More climate protection for Germany
• National implementation of RED-II (proposal)
GHG reduction quota 2020-2030
• Increase of GHG quota from currently 6% to 22% until 2030 (draft proposal)
• Share of crop-based biofuels up to 4.4% 25%
22%
• Share of advanced biofuels at least 2.6% in 2030
20%
• Multiple counting of e-mobility, hydrogen and synthetic fuels
• Further increase of GHG quota under discussion 15%
14.5%
• Revision of climate protection law (proposal) 10%
10% 8%
• Increase of GHG reduction target in 2030 to 65 (55)% vs. 1990 6.5% 7%
6%
• Upper limit for transport: max. 85 (95) Mt CO2eq. 5%
• Addition of GHG goal after 2030
o Up to 2040: -88% vs. 1990 0%
o Climate neutral from 2045 onwards
o Climate positive from 2050 onwards
Analyst conference, 19 May 2021 11More climate protection for Europe
• Green Deal: on the way to climate neutrality in 2050
• Current target: 40% lower GHG emissions by 2030
o Non-ETS (e.g. transport): 30% lower GHG emissions
• New target: Raising of the EU climate target 2030 to at least -55%
o More renewable energies necessary – revision of RED-II in preparation
o Transport target: Raising to 21-27% under discussion
• EU taxonomy regulation
• Classification system to promote sustainable investments
• Application on EU environmental targets
o From 2022: climate protection and adaptation on climate change
o From 2023: Protection of water und maritime resources, transition to circular economy,
no/less environmental pollution and protection of biodiversity/ecosystems
• Evaluation
o Positive: basic idea and recognition of the contribution of biofuels to climate protection
and the adaptation to climate change
o But: exclusion of crop-based biofuels for climate protection measures is arbitrary
and in contradiction to the renewable energy directive
CropEnergies AG, June 2021 12EU policies
Overview
EU: GHG emissions and climate
Overall target for emissions reduction vs. 1990: targets in transport
[Mt CO2eq]
min. 20% by 2020, min. 55% by 2030 1.000
,
ETS Sectors Non-ETS Sectors
emissions reduction vs. 2005 emissions reduction vs 2005
750
•Min 21% by 2020 • Min 9.3% by 2020
•Min 43% by 2030 •Min 30% by 2030
500
Effort Sharing
955
930
916
894
Transport (fuels) policies
778
Transport
669
Clean Energy
Package
Agriculture Clean Mobility 250
RED I & II Packages
10% RES-T by 2020 CO2 for cars and vans
191
Waste 24% RES-T by 2030* Fuel Quality Directive
CO2 for trucks
Advanced biofuels -6% GHG intensity of
transport fuels by 2020 Clean Vehicles
mandates Directive 0
Buildings
Energy Union Alternative Fuels
Governance Directive
Part of Industry National Energy & Traffic excl. aviation Non-ETS target
Climate Plans
EU target 2050
*discussion ongoing
CropEnergies AG, June 2021 13Renewable Energy Directive-II
The “toolbox“
Arable crops Annex IX-A Annex IX-B Electricity
• 2020 level, max. 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
• Proteins • At least 3.5% in 2030 • UCO imports: 10x • But: discretionary
within last 10 years multiplier (x4) does not
• Commitment to 1G • Strong market save a single gram of
as reliable basis for potential • Compatibility with
CO2
low-emission law on waste needs
• Very capital intense to be ensured • Extension only
transport sector
necessary reasonable if
• Investment security additional green
and investment electricity will be
incentives decisive produced
CropEnergies AG, June 2021 14CropEnergies
Innovation from Biomass
For our future:
Sustainability and climate neutrality
• in its traditional core business of mobility - with
sustainable and climate-friendly fuels
• in a completely new business area based on
ethanol derivatives as an alternative to fossil
raw materials
• with biogenic CO2 as the raw material of the
future and as capital for the company's further
development
• to serve a clear growth market with protein
products for the food and animal feed industry
and to deepen the value chain
CropEnergies AG, June 2021 15Our contribution: CE Green Deal
-35% until 2030 versus 2018
We invest 75 M€ in new energy sources and savings until 2025
347 342
.
0,8 333 350
Site Projects
0.73 300
0.69
0.63 250
Loon-Plage (FR) Usage of waste heat as process energy
200
0.47
.
0,4
Zeitz (DE) Transition to low CO2 / renewable energy sources
150
Wanze (BE) Construction of an additional biomass boiler 100
50
Wilton (UK) Reduction of process energy (energy efficiency)
0 0
2018 basis 2019 2020 2030 target
Total in Mt CO2 kg CO2 per t of product
Savings: >265.000 t CO2eq./year
CropEnergies AG, June 2021 16Appendix
Wheat 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
18The 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, June 2021BY 2020/21 & Outlook
Overview 2020/21 • Ethanol production 987 (1,002) ,000 m³ - 1% • Revenues € 833 (899) million - 7% • EBITDA € 148.4 (146.1) million + € 2 million • Operating profit € 107.0 (103.9) million + € 3 million • Net income € 84.9 (74.6) million + € 10 million • Net financial assets (vs. 29.02.2020) € 154.6 (107.3) million + € 47 million Note: Figures in parentheses relate to the corresponding prior-year period. CropEnergies AG, June 2021 21
Operating profit
Operating profit [M€]
150
(in € million) 2020/21 2019/20 Δ 120
104 107
Revenues 833.1 899.2 - 7% 90
EBITDA* 148.4 146.1 + 2%
Margin 17.8% 16.3% - 60
Depreciation* -41.4 -42.2 + 2% 33
30
Operating profit 107.0 103.9 + 3%
0
Margin 12.8% 11.6% - BY BY BY
*without restructuring costs and special items 18/19 19/20 20/21
• Slightly lower depreciation
• Operating profit reaches record level
• Operating margin increases to 12.8 (11.6)%
CropEnergies AG, June 2021 22Cash flow
Cash flow (+) / Investments* (-)
[M€]
150
120 122
(in € million) 2020/21 2019/20 Δ
100
Cash flow 122.3 120.2 + 2.1
Change in net working capital -16.4 5.0 - 21.4 50
Net cash flow from operating activities 105.9 125.1 - 19.2
Investments in property, plant et al. -28.0 -29.8 + 1.8 0
Cash received on desinvestments 0.5 0.0 + 0.5
-30 -29
Payments into financial receivables -55.2 -54.5 - 0.7 -50
BY BY
Payments into current financial investments 0.0 -15.0 + 15.0 19/20 20/21
*in PPE
Cash flow from investing activities -82.7 -99.3 + 16.6
Net financial position [M€]
Cash flow from financing activities -29.7 -16.7 - 13.0 200
Changes in exchange rates / consolidation basis -0.8 1.4 - 2.2 155
160
Change in cash and cash equivalents -7.3 10.5 - 17.8
120 107
28/02/2021 29/02/2020 Δ 80
Net financial assets 154.6 107.3 + 47.3 27/37
40
• Significant increase in financial assets 0
28/02/19 29/02/20 28/02/21
CropEnergies AG, June 2021 23Outlook 2021/22
• Initial announcement as insider information publication according to section 17 MAR on 7 April 2021
• Continuing uncertainty in all markets as well as the temporarily
significant increase in the price of raw materials
• Revenues between € 870 and 920 million
• EBITDA in a range of € 90 to 125 million
• Operating profit between € 50 and 80 million
CropEnergies AG, June 2021 24Financial Calender
7 July 2021: Statement for the 1st quarter of 2021/22
Contakt
13 July 2021: Annual General Meeting 2021 (virtual) CropEnergies AG
13 October 2021: Report for the 1st half of 2021/22 Maximilianstraße 10
12 January 2022: Statement for the 1st-3rd quarter of 2021/22 68165 Mannheim
18 May 2022: Annual report and press and analysts‘ conference FY 2021/22 www.cropenergies.com
Stock Information Investor Relations Public Relations / Marketing
ISIN: DE000A0LAUP1 Heike Baumbach Nadine Dejung-Custance
Symbol: CE2 Phone: +49 (621) 71 41 90-30 Phone: +49 (621) 71 41 90-65
Bloomberg / Reuters: CE2 GY / CE2G.DE
ir@cropenergies.de presse@cropenergies.de
Transparency standard: Prime Standard
Disclaimer
This presentation contains forward looking statements. The statements are based on current assumptions and estimates made by the executive board and information currently available to its members. The forward looking
statements are not to be viewed as guarantees of the future developments and results presented therein. Future developments and results are in fact dependent on a variety of factors and are subject to various risks and
imponderables. They are based on assumptions that could in fact prove to be invalid. The risk management report in the current annual report presents an overview of the risks. We assume no obligation to update the forward-
looking statements made in this presentation. In addition, all disclaimers published on the CropEnergies website apply.
This presentation includes percentage and number rounding. Typing and printing errors reserved.
Written and visual value statements are standardized as follows:
± 1% - stable ± 1 – 4% - slight 25
± 4 – 10% - moderate > ± 10% - significantYou can also read
