2019/20 PRESS CONFERENCE J u n e 3 , 2 0 2 0
HIGHLIGHTS EBITDA EBITDA GROWTH: +53% (in €m) +53% 420 275 ❑ Revenues +1.2% to €4.5 billion o Average sugar price EU: €334 ( -0.6%), Average sugar price NY11: 12.6 cts (+3%) 2018/19 2019/20 ❑ EBITDA: +53% to €420 million Ambitions 2022 o Increased operating results across all divisions (€m, cum.) 200 o EBITDA margin: 9.3% vs 6.2% ❑ Ambitions 2022: +€60 million in recurring earnings 75 15 2018/19 2019/20 2021/222 ❑ Net income: +€24 million Safety (OFR) ❑ Industrial investments: stable, at €160 million -21% ❑ Net debt: €2,556 million, down €73 million 9.0 7.3 o Operating cash flow: +43% to €234 million 7.1 2017/18 2018/19 2019/20 2 / 38 PRESS CONFERENCE – ANNUAL RESULTS JUNE 3, 2020 Note: Adjusted EBITDA throughout the document
HIGHLIGHTS INCREASED MOMENTUM IN THE 4 TH QUARTER 1 2 - M O N T H R O L L I N G E B I T D A ( € M I L L I O N ) ❑ Turning point in Q2 420 o New EU campaign 321 275 o Upturn in prices 259 249 o Growing impact of Ambitions 2022 Q4 18/19 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Act. Act. Act. Act. Act. 3 / 38 PRESS CONFERENCE – ANNUAL RESULTS WEDNESDAY, JUNE 3, 2020
HIGHLIGHTS GROWTH ACROSS ALL ACTIVITIES 2 N D L AR G E S T W O R L D S U G AR G R O U P S U G A R P R O D U C T I O N , V O L U M E Sugar: +4% to 4.5 mT 18/19 19/20 4.5 mT Alcohol: +7% to 1.6 mm3 Starch: +4% to 4.1 mT 4 / 38 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020 Note: grinding volumes for Starch activity Sources: F.O. Licht ; public data
HIGHLIGHTS POSITIVE MOMENTUM IN ALL DIVISIONS T E R E O S G R O U P E B I T D A B R E A K D O W N , € M I L L I O N +157% 23% 95 53% ❑ 2017 Plans: Sugar Europe €140 million Sugar International 37 ❑ Target of € 200 million +32% 222 2018/19 2019/20 168 ❑ 1,500 projects completed or launched 22% +7% 93 to date Starch 87 ❑ 400 employees 2018/19 2019/20 leading projects ❑ €75 million in earnings 2018/19 2019/20 5 / 38 PRESS CONFERENCE – ANNUAL RESULTS JUNE 3, 2020
HIGHLIGHTS TEREOS PURSUES ITS STRATEGIC TRANSFORMATION ILLUSTRATION #1 ILLUSTRATION #2 COMPETITIVENESS Decarbonization Wheat proteins IN A GLOBAL MARKET 2 nd ranked globally Renewable energies: 50% Proteins Energy consumption GHG emissions per food category (kg CO2/kg of protein) indirect direct VOLATILITY -1% -4.5% -0.5% TSSE TSF TSEB consumption consumption consumption 46,2 35,8 5,8 3 2,6 0,6 0,2 46.2 35.8 5.8 3 2.6 0.6 0.2 Bœuf Agneau Porc Poisson Riz Beef Lamb Pork Fish Rice Soja Soy Wheat Blé NEW MARKET Sales of biomass-based TRENDS AND electricity on the grid in X6 SOCIETAL EXPECTATIONS Brazil 6 / 38 PRESS CONFERENCE – ANNUAL RESULTS JUNE 3, 2020
01 SUGAR EUROPE: 7 38 HIGHLIGHTS AND RESULTS PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020
SUGAR EUROPE UPTURN IN SUGAR PRICES DURING HALF 2 End of quotas: European sugar prices halved The 18/19 campaign wiped out the market surplus (1) (EU Price Observatory) +1.9 -1.2 -0.1 -2.2 700 16/17 17/18 18/19 19/20 -50% 600 Average sugar price EU (2) : €334 500 495 445 400 375 336 334 300 312 (1) Source: Sugar Balance Sheet April 2020 – European Commission 8 / 38 PRESS CONFERENCE – ANNUAL RESULTS (2) European Union Price Observatory
SUGAR EUROPE UPLIFT IN EARNINGS AMPLIFIED BY GROWTH AND AMBITIONS 2022 PRICE S U G A R E U R O P E Q U A R T E R LY E B I T D A 70 440 66 422 +€25 2H vs 1H S U G A R P R I C E , E U R O P E A N O B S E R VAT O R Y 60 420 48 50 GROWTH 400 40 COMMERCIAL 31 33 380 MARKET SHARE 30 370 +27% VS QUOTA 360 20 20 VOL. BEETS 340 +22% VS QUOTA 8 10 7 2 1 320 0 AMBITIONS 2022 -10 300 -5 312 + €33 MILLION Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 IN EARNINGS 17/18 17/18 18/19 18/19 18/19 18/19 19/20 19/20 19/20 19/20 9 / 38 PRESS CONFERENCE – ANNUAL RESULTS JUNE 3, 2020 Sources: Public data, European Observatory, Tereos
SUGAR EUROPE UPLIFT IN EARNINGS AMPLIFIED BY GROWTH AND AMBITIONS 2022 Q U A R T E R LY E B I T D A 97 66 33 48 31 20 38 8 SUCRE EUROPE 7 2 1 22 14 9 -5 -16 -26 -34 -39 Sugar segment -107 Q3 17/18 Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 10 / 38 PRESS CONFERENCE – ANNUAL RESULTS JUNE 3, 2020 Sources: Public data, European Observatory, Tereos
SUGAR FRANCE RAW MATERIAL REMUNERATION HIGHER THAN THE GUARANTEED PRICE ❑ Average Tereos price for 2019 (Oct- Sept): €25.14 ❑ Formula-based price determined according ❑ Actual remuneration 7% higher than the guaranteed price of to market price €25 (2-year average) ❑ Tereos-specific 2014/15 2015/16 2016/17 2017/18 2018/19 32 indemnities and 31.01 30.6 premiums 28.64 28.40 29 26.61 27.23 27.00 26.44 26.27 26.30 26 25.14 24.23 23.66 23.00 23.05 ❑ Distribution of results 23 from processing 20 activities Cristal Union SLS Tereos PSE CU 11 / 38 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020 Sources: Public data; Tereos Notes: Tereos: average price (including surplus) / CU: average price (including surplus) / SLS: contracted beet price
SUGAR FRANCE COOPERATIVE ASSOCIATES’ REMUNERATION STRUCTURALLY SUPPORTED BY TEREOS DIVERSIFICATION ❑ Long-term commitment for 100% of sugarbeet ❑ Tereos has paid nearly €200/ha/year more to its cooperative associates over the last 5 years ❑ 99.5% renewal of ❑ Diversification has brought nearly €150/ha/year of additional commitments with income to its cooperative associates through dividends cooperative associates €2,485/ha €2,460/ha 99.7% 99.5% dividends dividends 2018/19 2019/20 Tereos Competition Rémunération moyenne Rémunération moyenne Average rem. Average rem. Tereos Concurrents 5-year situation 13/18 5-year situation 14/19 12 / 38 PRESS CONFERENCE - ANNUAL RESULTS WEDNESDAY, JUNE 3, 2020 Sources: Public data; Tereos Notes: Tereos: average price (including surplus) / CU: average price (including surplus) / SLS: contracted beet price
SUGAR FRANCE TEREOS TODAY PROCESSES 50% OF SUGARBEET IN FRANCE Dynamic growth in acreage continuing in 20/21: +3% (France excluding Tereos: -14%) Sugarbeet acreage (Ha) +22% +19% -1% 15/16 19/20 20/21 15/16 19/20 20/21 Tereos France excluding Tereos 13 / 38 PRESS CONFERENCE - ANNUAL RESULTS WEDNESDAY, JUNE 3, 2020 Sources: Public data; Tereos
SUGAR EUROPE +27% GROWTH OF TEREOS SUGAR MARKET SHARE IN EUROPE FOR SUGAR ❑ A structural decline in sugar consumption ❑ TEREOS EXPORTS 2/3 OF ITS EU SUGAR (-1% / year) A unique commercial offer: products & geography o ❑ Export sales: a strategic stake Commercial success thanks to our international strategy o Evolution of Tereos sugar market share in Europe SUGAR SALES 19/20 14.3% ~35% ~5% ~60% FRANCE EXPORT EXCL. EUROPE EXCLUDING EUROPE FRANCE 11.3% Flexible access to a large-scale export distribution o network Sugar export sales (excl. EU) 15% 5% Quotas 2017/18 2018/19 2019/20 2018/19 2019/20 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020 14 / 38 Source: Tereos
SUGAR FRANCE A VIRTUOUS CIRCLE Average production/plant (kt 1 /day) Campaign duration (days) Average production/plant (kt 1 ) + 23% +3% + 20% 1,875 1,786 125 15 14.6 14.5 123 1,520 + = 104 2015-16 2018-19 2019-20 2015-16 2018-19 2019-20 2015-16 2018-19 2019-20 Historic throughput rates 7 Tereos plants among the top 10 plants in +23% activity at our sites thanks to the during the last campaign France in terms of campaign duration strategy implemented after the end of quotas Virtuous circle: Commercial and agricultural growth ➔ better cost competitiveness and higher margins ➔ financial results ➔ agricultural remuneration 15 / 38 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020 (1) Volumes of sugarbeet processed Source: Tereos
02 EUROPEAN MARKET: 16 38 IMPACT OF COVID-19 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020
Covid-19 A STRATEGIC SECTOR +2,500 CUSTOMER SITES SERVED IN EUROPE ON A JUST-IN- TIME BASIS ❑ Food chain disrupted by confinement o Customer site shutdowns o Peaks in demand in certain sectors and shutdown of competitors’ sites o Severe logistical constraints ❑ Decrease in consumption of sweeteners o Industries most affected: beverages (-25%), ice cream (-24%), festive chocolates (-27%) o B2C supported by precautionary purchases and the closure of the Out-of- Home Catering business 17 / 38 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020
Covid-19 FRENCH CONSUMERS FAVOURED BÉGHIN-SAY DURING LOCKDOWN French consumers demanding high-profile brands during the crisis Evolution of French market (vol.) (1) +50% +27% Evolution of Tereos (1) market shares (2020) +13% 20.9 20.8 March April May Evolution of Tereos sales (1) +75% 19.5 +60% +46% March April May March April May 18 / 39 PRESS CONFERENCE - ANNUAL RESULTS JUNE 3, 2020 (1) Variation vs same month 2019; Tereos brands: Béghin-Say, La Perruche, Blonvilliers, Séréline Source: Nielsen
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