Schouw & Co. Full Year 2015 Investor presentation | March 2016 - PowerPoint PPT Presentation

Schouw & Co. Full Year 2015 Investor presentation | March 2016 CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

2015 Annual Report 04.03.2016 2 2015 highlights: Best operation in our history Return on invested capital NIBD/EBITDA Revenue DKK 12.6bn 18.3% -0.4x ROIC incl. goodwill 15.1% Closing of Specma and GPV acquisitions in 2016 Growth 6.6% // 2014: 11.8bn Increase in revenue in all businesses Growth in ROIC six years in a row will have DKK +1bn in NIBD effect EBIT DKK Future-proofing the platform Cash flow from operations DKK 831m M&A 1,171m Growth 17.5% // 2014: 708m BioMar JV in China // FIN acquisition in Turkey // Growth 86% // 2014: 628m DKK +50m from non-recurring items Hydra trebles its size // new leg in Schouw & Co. Free cash flow 602m

2015 Annual Report 04.03.2016 3 Solid increase across all businesses Revenue DKKm EBITDA DKKm 12,566 1,214 2 38 15 37 25 174 10 87 523 11,784 1,070 19 2014 BioMar FPC FIN Hydra Other 2015 2014 BioMar FPC FIN Hydra Other 2015 Cash flow from operations DKKm EBIT DKKm 1,171 831 2 34 7 18 15 14 116 81 370 628 708 12 2014 BioMar FPC FIN Hydra Other 2015 2014 BioMar FPC FIN Hydra Other 2015

2015 Annual Report 04.03.2016 4 Progress across all key figures Revenue and income DKKm 2015 2014 33% Revenue 12,566 11,784  410 EBITDA 1,214 1,070  increase in - margin 9.7% 9.1%  share price 390 EBIT 831 708  in 2015 - margin 6.6% 6.0%  370 Associates 86 28  Cash flows DKKm 2015 2014 350 Cash flows from operating activities 1,171 628  Cash flows from investing activities 569 355  330 Of which investment in PPE 354 233  Cash flows from financing activities -324 -563  310 Schouw & Co. share price Invested capital and financing DKKm 2015 2014 290 C20 CAP indexed to Schouw & Co. Working capital 1,598 1,775  MidCap indexed to Schouw & Co. Net interest bearing debt (NIBD) -511 44  270 Total equity 6,677 6,074  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb ROIC excl. goodwill 18.3% 16.9%  ROIC incl. goodwill 15.1% 14.0%  2015 2016 NIBD/EBITDA -0.4 0.0 

2015 Annual Report 04.03.2016 5 BioMar Strong 2015 figures Revenue Volume (k ton)  Increase in revenue and profit despite decrease in volume 6.2%  Pass-through of higher raw material prices increases revenue -4.1%  Volume increase in Continental Europe and margin increase 8,974 996 955 8,451  Solid improvement in EBIT margin in Norway  Positive FX effect where higher USD offsets lower NOK  Increased sale of value-added products 2014 2015 2014 2015  Strong Q4 with increase in market share EBITDA ROIC (%) ex. goodwill Very strong cash flow generation 3.2% -0.2  Net Working Capital down by 23% (DKK 230m) despite revenue increase 593 22.9 22.7 574  Increase in DPO and effective use of Supply Chain Financing  CF from operations DKK 637m and Free Cash Flow DKK 427m 2014 2015 2014 2015 Building a solid platform for future growth  140kt capacity in Norway ready by summer 2017 EBIT EBIT margin (%)  JV with Tongwei in China and JV with Sagun in Turkey 2.8% -0.2 447 5.1 434 5.0 Decent outlook for 2016  Positive volume expectations despite a flat/negative total market  Chile remains challenging with diseases and low salmon prices  Revenue expected at DKK 9.2bn and EBIT of DKK 410-450m 2014 2015 2014 2015

2015 Annual Report 04.03.2016 6 Fibertex Personal Care An exceptional profitable year Revenue Volume (k tons)  Flat revenue and volumes at same level as in 2014 0.5% -1.4%  Positive one-off effect of DKK ~50m from raw material pass- 1,788 1,797 102 through clauses and USD/MYR exchange rate development 101  Unexpected strong Q4 both in Denmark and Malaysia  Malaysia started soft in 2015 but recovery throughout the year 2014 2015 2014 2015 A solid cash flow generation EBITDA ROIC (%) ex. goodwill  Strong EBITDA translates to DKK 342m in CF from operations 28.3% +6.3 395 20.7 308 14.4 Investing in value-add and capacity  Expanding Malaysian capacity by 30% with line #5  Establishing print operations in Asia and expanding in Germany 2014 2015 2014 2015  Upgrading capacity in Denmark to more value added products EBIT EBIT margin (%) 47.4% Firm underlying guidance for 2016 +4.5 253 14.1  Revenue expected at DKK 1.9bn and EBIT at DKK 200-220m 171 9.6  Adjusting for DKK ~50m one-off, higher EBIT expected in 2016  Uncertainty from volatile FX and raw materials prices 2014 2015 2014 2015

2015 Annual Report 04.03.2016 7 Fibertex Nonwovens Last year’s progress continued Revenue US, ZA, TR sales  Solid increase in revenue, primarily from acquisitions 16.6%  Double digit growth in auto and advanced products segments 1,222 213 1,048  Firm increase in profitability across all European sites 25  Negative effect from consolidation of South Africa 2014 2015 2014 2015 Effect from international investments EBITDA ROIC (%) ex. goodwill  Increasing focus on value-added products -0.6 19.5%  Margin management and global factory footprint 153 8.4 7.8 128  Acquisition of spunlacing capacity in Turkey  Streamlining structures, effect from new ERP system 2014 2015 2014 2015  Significant increase in top-modern Czech facility EBIT EBIT margin (%) Progress set to continue in 2016 +0.3 22.8% 76 6.2 5.9  Double digit growth in revenue and EBIT of DKK 80-90m 62  Significant increase in depreciations (DKK +25m)  2016 will be a transition year with effect from capex/acquisitions 2014 2015 2014 2015

2015 Annual Report 04.03.2016 8 Hydra/Specma Very solid performance Revenue Wind segment sales  Solid increase in revenue and significant scale-effect on EBIT 17% 6.6%  Wind segment the main driver: almost 50% of revenue 603 566  Positive one-offs of DKK ~5m (mainly reversal of provisions) 2014 2015 2014 2015 Acquisition of Specma is a game-changer EBITDA ROIC (%) ex. goodwill  Result of long-time strategic ambition of growing Hydra  Building a truly international business 19.5% +6.3  Minimising exposure to individual segments like wind 93 28.9 78 22.6  Synergies primarily within sourcing 2014 2015 2014 2015 Guidance reaching towards the strong 2015 level EBIT EBIT margin (%)  Revenue about DKK 1.7bn and EBIT DKK 115-135m before PPA  Hydra/Specma pro-forma 2015 EBIT was DKK 135m +2.3 30.0% 78 12.9  Strong outlook in wind but soft in mining, marine and offshore 10.6 60  Purchase Price Allocations result in additional depreciations of DKK ~25m in the next 3 years – and DKK ~18m until 2026 2014 2015 2014 2015

2015 Annual Report 04.03.2016 9 Kramp Yet another solid year Revenue Net Working Capital 4.5% 5.0%  Revenue increase by 4.5% in a soft agricultural market 5,126 1,505  EBIT up by 17% with significant scale effects 4,906 1,434  Continued synergy-effect from Grene combination  Impressive 11.8% EBITDA margin / 9.2% EBIT margin 2014 2015 2014 2015 EBITDA EBITDA margin (%) Investment in efficiency and digitalisation 14.2% +1.0  Significant IT investment program 604 11.8 10.8 529  Building the industry’s leading web shop  Upgrading/automation of several Distribution Centres 2014 2015 2014 2015 EBIT EBIT margin (%) Positive outlook for 2016 17.0% +0.9 474 9.2  Growth in revenue to DKK 5.4bn and EBIT DKK 460-485m 8.3 405  DKK 65-75m to be recognised in Schouw under associates  Outlook for the European agricultural sector remains weak 2014 2015 2014 2015

2015 Annual Report 04.03.2016 10 Xergi – and other investments Xergi’s best year ever graphs to the right shows Xergi 100% figures Revenue Revenue split  Revenue (on 100% basis) increased 32% to DKK 411m 32% 411  Significant increase in EBIT to DKK 22m 311  Very high activity level  Effect from many years of investing in technology and 2014 2015 Denmark Other markets as well as strong Danish market EBITDA EBITDA margin (%)  Unchanged good prospects for biogas +1.9 79% 7.1 29 5.2 Incuba Invest 16  Ownership interests in development and venture activities 2014 2015 2014 2015  Small positive net result as expected EBIT EBIT margin (%) +1.1 64% Properties 5.4 22 4.3 13  Former Martin Professional properties put up for sale 2014 2015 2014 2015

2015 Annual Report 04.03.2016 11 Guidance 2016 REVENUE EBIT 2016 2015 2014 2016 2015 2014 outlook actual actual outlook actual actual DKK million DKK million BioMar 8,451 BioMar 434 9,200 8,974 410-450 447 Fibertex Personal Care 1,787 Fibertex Personal Care 171 1,900 1,797 200-200 253 Fibertex Nonwovens 1,048 Fibertex Nonwovens 62 1,400 1,222 80-90 76 Hydra/Specma 566 Hydra/Specma 60 1,700 603 *90-110 78 115-135 before PPA Other/eliminations -68 Other -20 -31 c. -20 -23 Total revenue c. 14.2bn 12.6bn 11,784 Total EBIT 760-850 831 708 Kramp (100%) c. 5,400 5,126 4,905 Associates etc. 75-85 86 28 Financial items, net c. -35 -46 -35 Profit before tax 800-900 871 701 Expected nine-month contribution from GPV (revenue DKK 600-650m) and EBIT DKK ~40m Kramp EBIT (100%) 460-485 474 405 before PPA should be added to the above following expected closing of the transaction in early Q2 2016 * After dedution of PPA depreciations of about DKK 25m