conference call q1 2019/20 10 july 2019 · 7/10/2019 · conference call q1 2019/20 11 income from...

1Conference Call Q1 2019/20

Conference Call Q1 2019/20

10 July 2019

Joachim Lutz, CEODr. Stephan Meeder, CFO


Highlights

Market and political environment

EU: renewable energies and GHG reduction

Development of market volume and prices

Development of CropEnergies Group

Lower production – higher results

Financials 1st quarter 2019/20

Good start of the year with high ethanol prices

Outlook for FY 2019/20 adapted


Focus on climate protection – GHG reduction

EU: more renewables in transport by 2030

RED II: min. 14% renewables

1G max. 7% | 2G min. 3,5%

EU: less GHG emission from non-ETS sector

Effort Sharing Regulation (ESR): 30% less GHG till 2030

DE: -38% in non-ETS in total and -43% in transport

Climate protection law in discussion

DE: GHG reduction target for fuels

Current legislation: -6% from 2020 onwards

Increase to -16% needed for progress

Lower GHG emissions of fuel need to be reflected in lower price

* Buildings, Agriculture, Other

Source: Agora (2018)

Germany: GHG emissions and targets by sectors[million t CO2eq]

2.7

2.3

2.1

1.8

1

2

3GHG emissions from fuels

[kg CO2eq/liter]


Market development: prices

Higher ethanol and feedstuff prices in first quarter

Ethanol*: € 594 (440) /m3

Grain**: € 185 (168) /t

Attractive protein prices

Feedstock supply 2019/20

EU: starch long, protein short

EU grain harvest: 311 Mt (+7%)

Exceeds demand of 287 Mt by 8%

World grain harvest***: 2,177 Mt (+2%)

1% below demand of 2,192 Mt

Ending stocks 602 Mt (-3%)

European ethanol prices [€/m3]

Euronext Paris wheat [€/t]

* Ethanol T2 FOB Rdam ** Wheat (Euronext Paris), next date of expiry *** all varieties, except rice

400

450

500

550

600

650

FY 17/18 FY 18/19 FY 19/20

125

150

175

200

225

FY 17/18 FY 18/19 FY 19/20


Market development: volume

EU ethanol market 2019e [M m³]

Production: 5.2 -2% (add. 2.4 non-fuel)

Consumption: 5.4 +/-0% (add. 2.6 non-fuel)

Status climate friendly fuels (selection)

Trend passenger cars – new registrations (EU)

2011: 43% Petrol | 55% Diesel | 0.06% BEV

2018: 57% Petrol | 36% Diesel | 1% BEV

EU sales fuel ethanol [M m3]

Country Target 2019 E10-share

BE Petrol: 8.5 vol.-% 80%

DE GHG: -4 wt.-% 13%

FR Petrol: 7.9 cal.-% 47%

UK Total: 8.5 vol.-% n/a

Source: F.O. Licht

2.2 2.2 2.2

1.5 1.5 1.5

0.9 0.9 0.90.8 0.8 0.7

0

2

4

6

8

2017 2018 2019e

UK France

Germany Other EU


Developments in the CropEnergies Group

Q1: Capacity utilisation adjusted

Ethanol production 208 (257),000 m3 (-19%)

Wilton plant at reduced capacity to meet local demand

Maintenance activities at other sites

CropEnergies’ biorefinery concept

Diversified production and product range

Complete utilisation of all feedstock components

Starch: fuel ethanol and neutral alcohol

Proteins: food and animal feed

CO2 from fermentation: food and technical applications

Broadening of feedstock basis

Residues: fuel ethanol with special status

Product mix Q1 19/20

[by weight of dry matter]

Note: non-fuel includes protein-rich food

and feed, neutral alcohol, liquefied CO2

257

208

0

100

200

300

Q1 18/19 Q1 19/20

Ethanol Production [1,000 m3]

non-fuel56%

fuel44%


Overview 1st quarter 2019/20

Ethanol production

Revenues

EBITDA

Operating profit

Net earnings

Net financial assets (vs. 28 Feb. 2019)

208 (257) ,000 m³

€ 202.7 (192.5) million

€ 25.8 (14.3) million

€ 15.2 (4.6) million

€ 10.6 (2.4) million

€ 37 (27*) million

- 19%

+ 5%

+ € 12 million

+ € 11 million

+ € 8 million

+ € 10 million

* incl. adjustments from IFRS 16


(in € million) Q1 19/20 Q1 18/19 Δ

Revenues 202.7 192.5 + 5%

EBITDA* 25.8 14.3 + 81%

Margin 12.7% 7.4% -

Depreciation* -10.7 -9.7 - 10%

Operating profit 15.2 4.6 > + 100%

Revenues

192 201 203

182 203

257237

277

196 208

0

100

200

300

400

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

Revenues / Production[M€ / 1,000 m3]

Revenues increased by 5% to € 202.7 (192.5) million

Significant increase in ethanol sales prices

Slightly higher average prices for food and animal feed products

Ethanol production decreased to 208 (257) ,000 m³

Wilton plant at reduced capacity to meet local demand

Maintenance activities at other sites

*without restructuring costs and special items

79%19%

2%

Revenues Q1 2019/20

Ethanol Food and animal feed products Other revenues


(in € million) Q1 19/20 Q1 18/19 Δ

Revenues 202.7 192.5 + 5%

Overall performance 197.8 191.2 + 3%

Cost of materials* -151.6 -153.7 + 1%

Spread (gross) 46.3 37.5 + 23%

in % of overall performance 23.4% 19.6% -

Further operating expenses/income* -20.4 -23.2 + 12%

EBITDA* 25.8 14.3 + 81%

EBITDA


EBITDA improved despite higher raw material prices

Gross margin increased to 23.4 (19.6)%

14

19

15

2426

0

10

20

30

40

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

EBITDA [M€]

3741 41

45 46

20% 22% 19%25% 23%

0

15

30

45

60

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

Spread (gross) / in % of overall performance [M€]


Operating profit

Depreciation increased due to the first-time adoption of IFRS 16

Operating profit more than tripled to € 15.2 (4.6) million

Operating margin rises to 7.5 (2.4)%

5

10

5

14

15

0

5

10

15

20

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

Operating profit [M€]

(in € million) Q1 19/20 Q1 18/19 Δ

Revenues 202.7 192.5 + 5%

EBITDA* 25.8 14.3 + 81%

Margin 12.7% 7.4% -



Margin 7.5% 2.4% -



Income from operations

No restructuring costs or special items

Income from operations with € 15.1 (4.5) million almost equal to the operating profit

(in € million) Q1 19/20 Q1 18/19 Δ

Revenues 202.7 192.5 + 5%

EBITDA* 25.8 14.3 + 81%

Margin 12.7% 7.4% -


15.2 4.6 > + 100%

Restructuring costs / special items 0.0 0.0 -

At equity result -0.1 0.0 - 44%

Income from operations 15.1 4.5 > + 100%

Operating profit


5

10

1514

15

0

5

10

15

20

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

Income from operations [M€]


(in € million) Q1 19/20 Q1 18/19 Δ


Restructuring costs / special items 0.0 0.0 -

At equity result -0.1 0.0 - 44%

Income from operations 15.1 4.5 > + 100%

Financial result -0.1 -0.4 + 67%

Earnings before income taxes 15.0 4.2 > + 100%

Taxes on income -4.3 -1.7 < - 100%

Net earnings 10.6 2.4 > + 100%

Earnings per share (in €) 0.12 0.03 > + 100%

Net earnings for the period

Financial result also improved

Tax rate decreased to 29 (42)%

2

56

8

11

0

5

10

15

Q118/19

Q218/19

Q318/19

Q418/19

Q119/20

Net earnings for the period [M€]


Cash flow

Net financial assets as of 31/5/2019 include leasing liabilities of

€ 9.9 million due to the first-time adoption of IFRS 16

12

21

-2-5

-10

0

10

20

30

Q118/19

Q119/20

Cash flow (+)/ Investments (-) [M€]

4137

56

27*/37 37

0

20

40

60

80Net financial assets [M€]

(in € million) Q1 19/20 Q1 18/19 Δ

Cash flow 20.8 12.3 + 8.5

Change in net working capital -6.0 -6.6 + 0.6

Net investments -4.6 -2.0 - 2.6

Cash out flow from leasing liabilities -1.0 0.0 - 1.0

Exchange rate changes et al. 0.3 0.0 + 0.3

Free cash flow before dividends 9.5 3.8 + 5.7

Dividends for prior year 0.0 0.0 -

Free cash flow 9.5 3.8 + 5.7

31/05/2019 31/05/2018 Δ

Net financial assets 36.5 40.7 - 4.2

*including IFRS 16


(in € million) 31/05/2019 31/05/2018 Δ

Assets

Non-current assets 385.6 399.4 - 3%

Current assets 226.7 193.2 + 17%

Total assets 612.3 592.6 + 3%

Liabilities

Shareholders' equity 452.0 452.0 + 0%

Non-current liabilities 55.7 48.3 + 15%

Current liabilities 104.6 92.3 + 13%

Total liabilities and equity 612.3 592.6 + 3%

Net financial assets 36.5 40.7 - 10%

Equity ratio 74% 76% -

Balance sheet structure

Balance sheet includes assets from lease arrangements as well as short-and long-term lease liabilities of € 9.9 million due to the first-time adoption of IFRS 16 (balance sheet extension)

452

441 442

449452

400

420

440

460Shareholders' equity [M€]


Outlook 2019/20

On average, slightly higher ethanol prices expected compared to previous year

Revenues in the range of € 820 and € 900 million

Operating profit in the range of € 30 and € 70 million

EBITDA in the range of € 70 and € 115 million


Financial Calendar

16 July 2019: Annual General Meeting 2019

9 October 2019: Report for the 1st half of 2019/20

13 January 2020: Statement for the 1st-3rd quarter of 2019/20

13 May 2020: Annual report and press and analysts’ conference financial year 2019/20

8 July 2020: Statement for the 1st quarter of 2020/21

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.

Investor Relations

Heike Baumbach

Phone: +49 (621) 71 41 90-30

[email protected]

Contact

CropEnergies AG

Maximilianstraße 10

68165 Mannheim

www.cropenergies.com

Stock Information

ISIN: DE000A0LAUP1

Symbol: CE2

Bloomberg / Reuters: CE2 GY / CE2G.DE

Transparency standard: Prime Standard

Public Relations / Marketing

Nadine Dejung-Custance

Phone: +49 (621) 71 41 90-65

[email protected]


END

conference call q1 2019/20 10 july 2019 · 7/10/2019 · conference call q1 2019/20 11 income from...

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